2008 Corporate Social Responsibility Report

Sun is committed to good corporate governance. Detailed information is available on our Corporate Governance Web site.

Sun uses the Institutional Shareholder Services (ISS) Corporate Governance Quotient (CGQ) as one measure of our corporate governance performance. In fiscal 2008, Sun outperformed 61.5% of the companies in the Standard & Poor's (S&P) 500 and 94.8% of the companies in the Technology Hardware & Equipment sector. Our S&P 500 Index Ranking increased 11% this fiscal year, while our sector ranking increased less than 1%.

In fiscal 2008, Sun's Board of Directors consisted of the following members:

• Scott G. McNealy (Chairman)
• James L. Barksdale
• Stephen M. Bennett
• Peter L.S. Currie
• Robert J. Finocchio, Jr.
• James H. Greene, Jr.
• Michael E. Marks
• Patricia E. Mitchell
• M. Kenneth Oshman
• P. Anthony Ridder
• Jonathan I. Schwartz

The Corporate Governance and Nominating Committee of Sun's Board of Directors amended its charter in April 2008 to include oversight of Sun's CSR initiatives. Committee members include James L. Barksdale (chair), Patricia E. Mitchell, and James H. Greene, Jr.

Transparency and Eco Responsibility

Sun's commitment to transparency is unwavering. We continue to expand our use of Web-based technologies such as blogs, videocasts, and podcasts on our corporate Web site to reach our stakeholders more effectively.

Employees, interns, and partners continue to take advantage of Sun's culture of transparency, posting unedited, unfiltered public blogs on topics ranging from environmental responsibility to innovations in Sun Labs.

In what is now standard corporate practice, Sun's fiscal 2008 annual report and proxy statement is Web based and available on our Investor Relations Web site. In 2007, Sun became one of the first companies with a market capitalization of $700 million or more to adopt the U.S. Securities and Exchange Commission's Notice and Access model for delivering stockholder information. We now notify stockholders via email or post that annual report and proxy materials are available on our Web site and give instructions for requesting printed materials if they prefer. We're committed to using the Internet to provide information in the most convenient form for our stockholders while saving financial and natural resources.

By using the electronic financial filings, we reduced our hard-copy printing of proxy materials by 92%, from about 1 million copies to about 80,000, saving approximately $500,000. On top of those financial savings, we also saved about 100 million pieces of paper and avoided generating 1,300 metric tons of CO₂ and 9.5 million gallons of wastewater.