GREEN INITIATIVES

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As the first and only studio to achieve ISO14001 certification (the international standard for managing an organization’s impact on the environment), Sony Pictures Entertainment (SPE) has had an established sustainability practice studio-wide for more than four years. Led by SPE’s Chairman and CEO Michael Lynton and Co-Chairman Amy Pascal, the studio’s goal is to reduce its ecological footprint by pursuing sustainable policies that combat climate change, preserve natural resources and protect the health and safety of the community through initiatives that span facilities and operations, production, consumer products, employees and community outreach.

The following are some of the ways that SPE envisions a greener world and is dedicated to help create it:

Composting Program

SPE was pleased to be named the first partner in an organic waste program piloted by Culver City’s Public Works department. Approved in a unanimous vote by the Culver City Council on April 13, SPE rolled out the composting pilot program on June 8 and aims to reduce waste by 1,000 tons per year at the studio. All non-recyclable trash from the studio’s lot and adjacent Sony Pictures Plaza building will be composted and sold to local farmers. "Don’t trash the glass" is just one of SPE’s internal messages designed to remind employees of the most effective way to handle their trash and recyclable material.

SPE has also converted its plastic containers, cups and utensils to bio-plastic, allowing for these items, along with food, paper and cardboard that is not recycled, to be diverted from landfills and processed in the composting program instead.

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Rideshare

Now in its 16^th year, SPE’s Rideshare program offers a wide variety of incentives to those eligible employees who are committed to alternative forms of commuting. More than 500 employees are currently enrolled in the program. Employees are encouraged to carpool, bike, walk or ride the bus to work. More information about the Rideshare program can be found in the Transportation Demand Management section of this annual report.

Entertainment Production & Distribution

Production Policy - SPE has established a "green" production policy that outlines and enforces best practices in reducing environmental impact in movie and television production.

Recycle, Reduce, Reuse Set Pieces - SPE has a catalogue database of over 14,000 set pieces stored in warehouses that can be reused on TV and feature productions. During 2008 more than 5,000 set pieces were reused.

In addition, SPE has donated over a thousand tons of unused props and set material to Habitat for Humanity in Los Angeles. All items donated are either used in the construction of new homes or are sold in a local Habitat For Humanity Home Improvement Store.

Digital Distribution - SPE is advancing digital postproduction workflows on the studio lot to reduce the creation, transportation and disposal of film and tape. In addition, SPE is expanding its digital cinema distribution to theaters. Each theatre equipped for digital-cinema production uses a reusable computer hard drive that replaces two miles of film which would ultimately go to a landfill.

Home Entertainment - Sony Pictures Home Entertainment (SPHE) is switching to an ultra-light DVD case that uses 20 percent less plastic than standard-weight DVD cases, resulting in an estimated two million pound reduction in carbon emissions annually. SPHE is also taking steps to lighten the plastic wrap on DVDs, decrease the amount of paper used to create DVD cover sheets, and cut back on the use of “O-rings” around DVD cases.

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Corporate & Studio Operations

LOT Project - The LOT, or Lot and Office Transformation, Project is on course to receive Gold-level LEED, or Leaders in Energy and Environmental Design, certification through the rigorous environmental and sustainable practices employed during the design, construction and operation of the new development. More information about the LOT project and the specific environmental initiatives can be found in the Development – LOT Project section of this annual report.

Solar Energy - SPE’s pilot installation of photovoltaic cells on the roof of the Jimmy Stewart building reduced the studio’s annual CO2 by 180 tons in 2008. The energy created from this installation feeds directly into the main electricity loops that power the studio lot.

Daily Operations - Operations at the studio have been transformed by implementing energy efficient computer servers, desktops and laptops and by installing motion detector lighting and compact fluorescent bulbs in the studio’s stages and office buildings. In addition the studio is using more water-based paints, "green" adhesives, sealants and carpeting, and eliminating the use of halon in fire suppression systems and extinguishers to reduce employee exposure to chemicals. "Green" products are also being utilized for interior cleaning and outdoor landscaping.