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2007 Corporate Social Responsibility Report

Introduction

Letter from Our CEO Key Facts CSR at Sun Corporate Governance Public Policy Stakeholder Engagement

In our 2006 Corporate Social Responsibility Report we made several goals and commitments. Our progress toward meeting these goals is outlined below.

STATED GOAL	TIME	PROGRESS TOWARDS GOAL
ECO INNOVATION
Introduce products that offer 30x more performance, 1/10 the energy, and ½ the heat compared to 2003	2008	We have been introducing a steady stream of products that demonstrate increased energy efficiency combined with increased performance. We will continue to advance this goal with new products in fiscal 2008.
Ensure EU RoHS compliance for all newly designed products released in 2006 and later	FY07	We are RoHS compliant for all newly designed products released in 2006 and later
Evaluate our packaging strategy and develop/implement an action plan to address any potentially negative environmental impact of packaging	FY07	We are working on a packaging program that incorporates eco responsibility principles.
CARBON FOOTPRINT
Implement a 20% reduction in U.S. GHG emissions over 2002 levels	2012	We are working steadily toward reducing our GHG emissions and are now posting our monthly emissions on our Web site.
Continue to reduce energy usage in our datacenters, converting them into eco responsible facilities	Ongoing	We have undertaken a number of efforts to make our datacenters more eco responsible.
Finalize our renewable energy strategy	FY07	As we develop our GHG management strategy, we will consider various alternative, clean energy options that will enable us to meet our business and environmental goals.
Begin generating clean power at our Broomfield, Colorado, campus	CY08	We are on track to begin using renewable energy at several of our U.S. locations, including Broomfield, Colorado, before the end of calendar 2007.
Develop a global baseline and reduction targets for our GHG emissions	CY07	We are on track to produce our global GHG inventory baseline and set global reduction targets by the end of calendar 2007.
Establish tracking systems to capture and measure our GHG emissions and report our findings publicly	Ongoing	We publish our monthly GHG emissions on our Web site
Publicly report on progress towards reducing GHG emissions	Ongoing	We publish our monthly GHG emissions on our Web site and in our annual Corporate Social Responsibility Report.
PRODUCT TAKEBACK
Ensure EU WEEE compliance	CY06	We are compliant with the EU WEEE directive.
Strengthen our global takeback program	FY07	We are working hard to strengthen our global product takeback program.
Maintain a 5% takeback goal despite increased computer equipment in the marketplace	Ongoing	We are refining our data collection and reporting protocols so that we can continue to track our progress toward this goal.
ECO AWARENESS
Save at least 20 tons of CO2 at our 2007 JavaOne conference	May 2007	Our 2007 JavaOne conference avoided 58 tons of CO2 emissions.
OPEN WORK
Establish Open Work program CO2 metrics and reduction targets	FY07	We are working with the University of Colorado to establish a carbon measurement system for our OpenWork program.
WASTE MANAGEMENT
Implement waste management evaluation/measurement programs	CY07	We are on track to finalize an evaluation of our waste management programs and develop measurement and reporting systems.
Set waste reduction targets and publicly report on progress	After metrics are established	Once we have evaluated our waste management programs and begun measuring our performance, we will develop goals and report on our progress toward meeting these goals.
GREEN PROCUREMENT
Establish targets and incentives for increased procurement of eco-friendly office supplies	None specified	We make the Office Depot Green Book available for purchasing office supplies worldwide. We are further developing our green procurement program to eventually include sustainability metrics and incentives.
PRIVACY
Include privacy "checks and balances" throughout the Sun product lifecycle	FY10	We have begun including privacy checks and balances throughout the lifecycle of certain Sun products.
OPEN WORK
Standardize and execute a methodology to measure footprint and net CO2 reduction related to our Open Work program	FY07	We are working with the University of Colorado to establish a carbon measurement system for our Open Work program. We anticipate using this system some time in 2008.
Increase employee participation in our Open Work program by 10% over fiscal 2006	FY07	We increased participation in our Open Work program by 8.8%, or 1543 workers.
Add 5000 employees to our Open Work program	FY08	We have decided to shift our Open Work goals away from simply increasing the number of participants and are focusing on helping all Sun workers understand the category of Open Work that best suits their work styles, their particular jobs, and their own needs.
SUPPLY CHAIN
Develop the Sun Code of Conduct using internationally accepted standards	FY07	We signed the Electronic Industry Code of Conduct in March 2007 and have adopted it as Sun's Supplier Code of Conduct.
Drive 100% contract supplier adherence to our Supplier Code of Conduct	FY08	We are working with our contract suppliers to ensure that we achieve our goal of 100% adherence to our Supplier Code of Conduct by fiscal 2008.
Ensure that all contract suppliers are ISO 14001 certified	FY07	All contract suppliers are ISO 14001 certified.
GLOBAL INCLUSION
Establish global inclusion goals for Sun that will encourage partnerships and collective ownership of "Inclusion at Sun"	Ongoing	We continue to focus on strengthening our efforts to create a truly inclusive environment at Sun.
GLOBAL CITIZENSHIP
Launch up to two employee-driven programs	FY07	We selected one employee-driven program in fiscal 2007.

Throughout our 2007 Corporate Social Responsibility Report you will find goals and commitments that build on the ones outlined in our 2006 CSR Report. These include:

STATED GOAL	TIME
ECO INNOVATION
Begin collecting and publishing energy use data for all Sun systems	Ongoing
Calculate the embedded energy used to manufacture Sun products	Ongoing
Provide energy calculators for all products on our Web site	FY08
CARBON FOOTPRINT
Quantify global Scope 1 and Scope 2 CO2e emissions and create a companywide GHG management plan and GHG reduction target	FY08
Work to enhance monthly energy use data to include: year-over-year comparisons, building-level data, and international locations	FY08
Reduce energy consumption in our buildings in fiscal 2008 by 3% compared with fiscal 2007	FY08
Introduce peak-load reduction plans at all our U.S. Facilities	FY08
GREENING OUR BUILDINGS
Achieve LEED certification for one Sun building	FY08
Achieve LEED certification for 10 to 20 additional Sun buildings	FY09
ECO AWARENESS
Decrease CO2e emissions from the 2008 JavaOne conference by 20% compared with 2007	2008
Increase employee participation in all aspects of Sun Microsystems Alternative Resources for Transportation (SMART) by 5%	FY08
OPEN WORK
Using new methodology, determine environmental impact/savings of Open Work program	FY08
PRODUCT TAKEBACK
Develop a countrywide product takeback program in the U.S.	CY07
Put in place systems for gathering and sharing data on product takeback	FY08
Roll out a formal takeback processes to all regions	FY08
PRIVACY
Develop internal, Web-based privacy training for all Sun employees	CY09
Integrate privacy checks into our product takeback and disposal process	CY09
Produce at least two privacy white papers per year to share information on privacy issues and promote best practices	Ongoing
EMPLOYEE ENGAGEMENT
Narrow the gap between employees to whom it is important that Sun is socially and environmentally responsible and those who believe we are, with a focus on nonexecutive employees	FY08
Increase employee CSR Advisory Board participation to include more representation from non-U.S. regions	FY08
GREEN PROCUREMENT
Identify opportunities to incorporate CSR into procurement decisions and develop metrics to track our progress	FY08
Measure and report on how much spending is placed with suppliers identified as promoting CSR	FY09
SUPPLIER DIVERSITY
We have various targets in place for working with a diverse base of small businesses	Ongoing
SECURITY
Publish recommendations for organizations who want to deploy OpenID providers	FY08
GLOBAL CITIZENSHIP
Increase Sun Foundation gift matching by 15%	FY08