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Our Sustainability Management

Material Issues

View Sumitomo Corporation's Sustainability : Material Issues

Material Issues

The basis for the Sumitomo Corporation Group’s operations can be found in Sumitomo’s Business Philosophy, which has formed the foundation for Sumitomo’s sustainable development over the course of 400 years. One of the credos of this philosophy states: “Benefit for self and others, private and public interests are one and the same.” We interpret this credo advocates Sumitomo’s business activities must benefit not only Sumitomo, but also society around us to achieve sustainable growth together.

This credo has been incorporated into Sumitomo Corporation Group’s Corporate Mission Statement. Guided by our Corporate Mission Statement, we have continued to conduct our business activities with the aim of being a global organization that constantly stays a step ahead in dealing with change, creates new value, and contributes broadly to society.

To achieve sustainable growth into the future through the resolution of social issues , in 2017, we have identified our Material Issues that we should address by leveraging our strengths in line with Sumitomo’s Business Philosophy and Sumitomo Corporation Group’s Corporate Mission Statement. In 2024, discussions with stakeholders—both within and outside the Group—were conducted over the course of approximately one year from the perspective of value creation, with consideration also given to the further aggravation of social issues such as climate change and the loss of biodiversity, the Group’s strengths, and expectations from stakeholders. The Material Issues were merged and updated after approval by the Management Council and Board of Directors.

The Material Issues are a medium- to long- term commitment that goes one step further toward addressing key social challenges that the Group must undertake. The Group will achieve sustainable growth through addressing the social challenges.

Build resilient and prosperous society
We create a virtuous circle in which all people can enjoy physically and mentally enriched lives, and we can grow and develop together with local communities by stepping ahead in dealing with the needs of people in various countries and regions.
Overcome climate change
We work together with stakeholders to decarbonize society and promote the realization of a carbon-neutral and resilient society, while taking into consideration the characteristics of the respective industry and region.
Preserve and regenerate natural capital
To achieve a world living in harmony with nature, we avoid or minimize the impact on natural capital caused by our business activities and go beyond preservation to also pursue regeneration and effective use of natural capital through the building of a circular economy and other measures.
Respect human rights
Striving to respect the human rights of every stakeholder involved in our supply chain is the foundation of all corporate activities. We work to identify and to prevent or mitigate any adverse impact on human rights, as well as to ensure the safety and security of our stakeholders.
Develop talent and promote DE&I
We recognize Diversity, Equity & Inclusion (DE&I) as the core enabler for value creation, innovation and competitiveness. In order to create new value and innovation by allowing our diverse personnel to fully exercise their abilities in a variety of fields, we will promote the development and empowerment of human resources, which represent our most important management capital.
Maintain and strengthen governance
We will develop an autonomous Group management system that responds to changes in the business environment with agility, and maintain and strengthen our efficient, sound, and transparent governance system.

Identification and Review Process

We identified the Material Issues based on Sumitomo’s Business Philosophy and the Sumitomo Corporation Group’s Corporate Mission Statement. In 2024, the Material Issues updated after approval by the Management Council and the Board of Directors, through discussions held with internal and external stakeholders over the course of approximately one year. The review was conducted from the perspective of value creation, with consideration also given to the further aggravation of social issues such as climate change and the loss of biodiversity, the Group’s strengths, and expectations from stakeholders.

Investigation

While referring to the SDGs adopted by the United Nations (UN) in 2015 and the international guidelines such as the IIRC’s International Integrated Reporting Framework,we exchanged opinions with institutional investors and experts. We then formulated the methodology for identifying material issues needing to be addressed in order for us to achieve sustainable growth with society.

Classification of Our Business and Social Issues and Selection of Material Issues

Based on the SDGs which considered to comprehensively cover numerous social issues, each business unit compiled a list of the social issues they are currently addressing through their business and those they hope to address in the future.
Referencing these lists and considering Sumitomo’s Business Philosophy and the Sumitomo Corporation Group’s Corporate Mission Statement, we contemplated our current strengths and the roles we should assume in the future. We then selected social issues that we regard as important and that need to be addressed with high priority as well as our challenges to be overcome in creating solutions.

Exchanges of Opinion with Internal and External Stakeholders and identify

We exchanged opinions with outside experts such as international organizations and institutional investors, conducted surveys covering all officers and employees to collect their opinions, so as to clarify the interests and expectations of internal and external stakeholders with regard to our corporate activities, which were incorporated into discussions.
The selected issues and their importance were reviewed by the Corporate Sustainability Committee. With deliberation and approval by the Management Council and the Board of Directors, the Material Issues were identified.

Update

We periodically review our Material Issues, taking into account the Group's strengths, the expectations of our stakeholders, and the changes in the external environment.

Medium- and long-term goals and progress

Each Strategic Business Unit (SBU) defines specific goals and action plans for the medium- and long-term goals for each issue and implements initiatives to achieve them. The Corporate Sustainability Committee, an advisory body to the Management Council, monitors these initiatives and their progress, and reports to the Management Council and the Board of Directors. Please see the bottom of this page for the medium- and long-term goals for the Key Social Issues which is merged to Material Issues in 2024 and the main examples of initiatives for each of the Key Social Issues.

Material Issues and Medium- and Long-term Goals

Material issues Long-term goals Medium- term goals
Build resilient and prosperous society
  • Contribute to the development of local communities and economies
  • Develop safe, comfortable and resilient industrial and social infrastructure
  • Provide advanced services and functions that further enrich the lives of people
  • Develop human resources who will drive the future by providing quality education
  • Develop human resources who will drive the future through business and social contribution activities
    • Provide job training and educational opportunities in line with local needs, and expand the scope of beneficiaries
    • Promote 100SEED program(*1) by having 5% or more of all employees participate annually
Overcome climate change
  • Aim for carbon neutrality of the Sumitomo Corporation Group’s businesses by 2050
  • Contribute to the carbon neutrality of society
  • Reduce the Group's CO2 emissions 50% or more by 2035 (compared with 2019)
    • Reduce CO2 emissions of the power generation business by 40% or more by 2035 (of which reduce 60% or more for coal-fired power generation business) while expanding the renewable energy power generation business (expand the supply of renewable energy from 1.5 GW in 2019 to 5 GW or more by 2030)
    • In fossil fuel upstream business, reduce indirect CO2 emissions generated from thermal coal mines to zero by the end of the 2020s. For upstream gas development, only undertake those that contribute toward society’s energy transition.
    • Reduce CO2 emissions in all other businesses (*3)
  • Build a sustainable energy system and carbon cycle with an overview of supply chains
    • Improve energy and carbon efficiency, and expand businesses that encourage energy conservation
    • Expand renewable energy and new power and energy services, encourage electrification and fuel conversion, and develop and implement hydrogen and other forms of carbon-free energy
    • Promote capture, store and utilize CO2（forestry business, CCUS, blue carbon, etc.）
Preserve and regenerate natural capital
  • Achieve a world living in harmony with nature through initiatives including the building of a circular economy and supply chain management
  • Accelerate initiatives toward a nature-positive world by 2030
    • Analyze nature-related risks and opportunities in each business
    • Reduce risk of the entire supply chain, including sustainable procurement of major natural resources
    • Pursue new business by developing products, services, and scheme that encourage the shift toward Nature Positive and a circular economy
Respect human rights
  • Respect the human rights of all stakeholders in all businesses and supply chains
  • Promote and ensure respect for human rights in accordance with the United Nations Guiding Principles on Business and Human Rights and Sumitomo Corporation Group’s Human Rights Policy
    • Reduce human rights risks by further strengthening human rights due diligence and grievance mechanisms(*4) across the entire supply chain
    • Promote initiatives and improve transparency through stakeholder engagement and enhancement of information disclosure
  • Ensure a safe workplace environment
Develop talent and promote DE&I
  • Create workplaces that allow diverse employees to apply their capabilities with passion in their own ways
  • Increase diversity in decision-making positions
  • Cultivate inclusive leadership
Maintain and strengthen governance
  • Develop a robust governance system to enhance the corporate value
  • Further improve the effectiveness of oversight functions for ensuring the efficiency, soundness, and transparency of management
  • Establish Group management system that responds to changes in the business environment with agility
  1. Social contribution activity program with employee participation at Sumitomo Corporation Group
  2. Indirect CO2 emissions generated by others with the use of fossil fuel
  3. Contribute to CO2 reduction by setting targets for individual businesses
  4. A process that employees, local residents or other stakeholders can use to lodge complaints regarding human rights violations and other issues related to enterprise’s business activities including its supply chain, for resolving such issues

【Reference】 Key Social Issues and Medium- and Long-term Goals
（Merged to Material Issues in FY2024 and the goals have been updated as shown in “Material Issues and Long- and Medium-term Goals” ）

Key social issues Long-term goals Medium-term goals
Sustainability of society
    Mitigation of climate change
    Aim for carbon neutrality by 2050 and challenge to realize sustainable energy cycle
  • Reduce the Group's CO2 emissions 50% or more by 2035 (compared to 2019)
    • Reduce CO2 emissions of the power generation business by 40% or more by 2035 (of which reduce 60% or more for coal-fired power generation business);
      power generation portfolio in 2035 to comprise 20% coal-fired, 50% gas-fired and 30% renewables (*1) in terms of net ownership generation capacity.
    • Reduce indirect CO2 emissions (*2) associated with the fossil fuel upstream business by 90% or more by 2035.
    • Reduce CO2 emissions in all other businesses (*3).

  • Establish businesses that will form the foundation for a sustainable energy cycle in society
    • Develop hydrogen and other forms of carbon-free energy, increase supply of renewable energy (5GW or more by 2030)(*4), and expand new power and energy services.
    • Expand businesses encouraging electrification, fuel conversion, improved energy and coal efficiency, and energy conservation.
    • Capture, store and utilize CO2 via carbon recycling, forestry business, CCS, and emissions credit trading, etc.
    Circular economy
    Shift to recyclable, efficient technologies and products
  • Use renewable and recyclable raw materials, collect waste, and promote improved efficiency of product usage
    • Expand use of raw materials derived from recycled or renewable resources.
    • Improve efficiency of product usage and expand businesses that promote longer product life (sharing, sales of used items, leasing, rentals, etc.) .
    Sustainable use of natural resources
  • Reinforce the sustainable procurement system for major natural resources used by the Group
    • Identify major natural resource-related commodities requiring sustainable procurement, establish procurement policy, promote certification, and strengthen voluntary auditing system.
    Respect for human rights
    Respect human rights through all of our businesses and supply chains
  • Promote and ensure respect for human rights in accordance with the United Nations Guiding Principles on Business and Human Rights and Sumitomo Corporation Group’s Human Rights Policy
    • By 2023, achieve 100% participation rate in human rights education based on the Guiding Principles, and 100% implementation rate in regional organizations and subsidiaries.
    • Strengthen risk analysis in human rights due diligence to accurately assess risks in all businesses, including the supply chain, and implement risk mitigation measures by 2025. Establish a more effective grievance mechanism(*5) based on assessment results.

  • Ensure a safe workplace environment
    • Strengthen efforts to achieve zero accidents at major business workplaces, focusing on manufacturing, processing, and projects involving large-scale construction.

  • Achieve a diverse organization grounded in mutual respect
    • Provide a safe working environment that is free from discrimination and harassment.
    • Promote human resource management that enables individuals to demonstrate their abilities regardless of nationality, age, gender, sexual orientation, gender identity, or any other attributes or values.
Development and evolution of society
    Development of local society and economy
    Contribute to development of local industries and human resources
  • Develop local industries, create jobs, and develop human resources through the Group’s global business operations
    • Promote sustainable, highly productive and value-added industries, and coexist with local communities through business.
    • Create employment and develop management and highly skilled human resources at the Group's business sites.
    Develop industrial and social infrastructure
  • Establish industrial and social infrastructure that contributes to the sustainable development of society
    • Promote infrastructure that enables access to high-quality energy, water, transportation, logistics, communications, and financial services, as well as businesses that enhance urban functions.
    Improvement of living standard
    Provide advanced lifestyle-related services
  • Deliver advanced lifestyle services that help to solve social issues such as urbanization and aging populations
    • Provide more advanced services and new functions that improve the standard of living, such as mobility, media and telecommunications, healthcare services, and smart city development, based on new technologies and concepts.
    Quality education
    Contribute to quality education
  • Provide quality and equal learning opportunities through 100SEED(*6) activities
    • Quantitatively expand the scope of learning opportunities.
    • 100% satisfaction of beneficiaries.
    • Continue to have at least 5% of all employees participate annually (scope is Sumitomo Corporation, regional organizations and Group companies).
  1. As of 2020：coal 50%, gas 30%, renewables 20%
  2. Indirect CO2 emissions generated by others with the use of fossil fuel
  3. Contribute to CO2 reduction by setting targets for individual businesses
  4. As of 2020：1.5GW (1GW = 1 billion W)
  5. A process that employees, local residents or other stakeholders can use to lodge complaints regarding human rights violations and other issues related to enterprise’s business activities including its supply chain, for resolving such issues
  6. Social contribution activity program with employee participation at Sumitomo Corporation Group

Main initiatives in FY2023

Mitigation of Climate Change - Representative Initiatives

Long-term goals: Aim for carbon neutrality by 2050 and challenge to realize sustainable energy cycle
Medium-term goals: Reduce the Group's CO2 emissions 50% or more by 2035 (compared to 2019)
Business unit Field Goals Progress
● Reduce CO2 emissions of the power generation business by 40% or more by 2035 (of which reduce 60% or more for coal-fired power generation business); power generation portfolio in 2035 to comprise 20% coal-fired, 50% gas-fired and 30% renewables in terms of net ownership generation capacity.
Infrastructure Generation Reduce CO2 emissions of the power generation business by 40% or more by 2035 (of which reduce 60% or more for coal-fired power generation business) (compared to 2019)
  • CO2 emissions of the power generation business increased by 8.9% (compared with 2019)
● Reduce indirect CO2 emissions associated with the fossil fuel upstream business by 90% or more by 2035.
● Reduce CO2 emissions in all other businesses.
Metal Products Steel products Measure CO2 emissions in the supply chain, improve measurement accuracy, visualize emissions, verify methods for reducing emissions, and run proofs of concept
  • Completed calculations for visualizing Sumitomo Corporation Global Metals group CO2 emissions (Scope 1, 2 and a part of 3) for FY2022 and obtained third-party certification (March 2024)
Metal Products Tubular products Measure CO2 emissions in the supply chain, improve measurement accuracy, visualize emissions, verify methods for reducing emissions, and run proofs of concept
  • Completed calculations for visualizing tubular products business CO2 emissions (Scope 1, 2 and 3) for FY2022 and obtained third-party certification (March 2024)
Metal Products Tubular products Aim to go carbon neutral at the next-generation distribution center in West Texas, United States
  • Introduced solar power generation and EV forklifts. Rail transport has already begun. (switching from truck)
Transportation & Construction Systems Automotive parts Reduce CO2 emissions at KIRIU CORPORATION by 30% by FY2024 (compared to FY2019)
  • The newest casting plant with electric furnaces has been completed and started its operation on April 2023. It will be operated in parallel with the old existing casting line in FY2023, and casting production will be integrated into the new upgraded plant in FY2024.
    And, KIRIU are gradually switching over to electricity derived from renewable energy at domestic and overseas bases.
  • The roadmap for Carbon Neutrality will be completed by May 2023, and the activity for 30% of CO2 emissions reduction (compared to 2019) by 2030 will be kicked off.
Transportation & Construction Systems Construction & mining systems sales Reduce direct/indirect CO2 emissions from own operations (Scope 1/2), reduce CO2 emissions from customer operations (Scope 3), and promote sales of electric machinery and automated machinery
  • Continuing efforts to refine measurement of CO2 emissions
  • Continuing dialogue with Group companies, and implementing initiatives, to contribute to Scope 3 emission reductions and sustainability. European and North American Group companies are delivering electric and automated machines to mining customers. The number of deliveries of these machines has been increasing.
Infrastructure Logistics At Sumisho Global Logistics Co., Ltd., visualize the transportation part of CO2 emissions (categories 4 and 9 of GHG Protocol Scope 3) indirectly emitted by the company and operating companies
  • Sumisho Global Logistics Co.,Ltd.: We are strengthening internal education and introductions. 16 proposals were made internally and externally, mainly visualization of greenhouse gas emissions.
  • Continued to supporting sales and the operating companies of the Group.(Supported 15 companies)
Living Related & Real Estate Retail Reduce energy consumption and CO2 emissions at SUMMIT,INC stores
  • Replacement with energy-efficient refrigeration and freezing equipment at 14 stores
Living Related & Real Estate Fresh Produce Reduce Fyffes GHG emissions to achieve the Science-Based Target in line with the 1.5˚C scenario, representing a 25% reduction for scope 1 and 2 in CO2 eq./kg of fruit harvested by 2025, and a 10% reduction for scope 3 in CO2 eq./kg of fruit harvested and distributed by Fyffes and its suppliers, from a 2020 base year.
  • In 2023, we increased Scope 1&2 GHG emissions by 9.4% per kg (due to yields in melons).
    Reduced Scope 3 emissions by ~18%.
Living Related & Real Estate Real estate Aim to obtain CASBEE evaluation and rating (a type of green building certification) at logistics facilities, office buildings and retail properties owned and developed by Sumitomo Corporation
  • Obtained Rank A for three logistics properties
    Obtained assessments for twelve office buildings owned by Sumitomo corporation (grades: nine S and three A)
    Obtained assessments for eight retail properties owned by Sumitomo corporation (grades: four S and four A)
  • Obtained Rank A for one new logistics facility (out of one project).
Living Related & Real Estate Real estate At the fund and REIT managed by our group, obtain GRESB, an ESG assessment specific to the real estate sector
  • Obtained GRESB 5 Stars for SOSiLA Logistics REIT, Inc.
  • GRESB 4 Stars for SC Realty Private REIT, Inc.
Living Related & Real Estate Real estate Develop projects that meet the "ZEH-M Oriented" standard (reduce primary energy consumption of entire condominium, including common areas, by at least 20%)
  • One project that meets the "ZEH-M Oriented" standard has been completed
Media & Digital IT Reduce electricity consumption and CO2 emissions at SCSK Corporation data centers, etc.
  • Achieved 22% reduction of greenhouse gas (Scope 1+2) in accordance with SBT certification target.
  • Reduction of emissions through the use of renewable energy and FIT non-fossil fuel certificates (64,400,000 kwh, equivalent to 37.5% renewable energy)
  • Continue consideration of renewable energy utilization.
●Develop hydrogen and other forms of carbon-free energy, increase supply of renewable energy (3GW or more by 2030)(*4), and expand new power and energy services.
Infrastructure Renewable energy Increase supply of renewable energy (3GW or more by 2030)
  • Renewable energy: 2.1GW (as of end of FY2023)
Infrastructure Thermal power generation Promote a business model utilizing carbon offset technologies (CCUS*, hydrogen, etc.) to achieve carbon neutrality by 2050
  • Support for host countries to shift power sources to renewable energy, etc.
  • Considering how to decarbonize and low-carbonize existing coal-fired power generation businesses such as through new technologies and new fuels
●Expand businesses encouraging electrification, fuel conversion, improved energy and coal efficiency, and energy conservation.
Metal Products Steel products Participate in trading activities and related businesses for direct reduced iron and electric furnace materials that contribute to carbon neutral of the steel supply chain
  • Continuing discussions with each supplier about supplying steel products with lower CO2 emission.
  • In collaboration with Energy Transformation Business Group, continuing discussions with customers and suppliers about CCS and H2 supply for steel manufactors.
Metal Products Oil & gas drilling Provide services that contribute to the direct reduction of CO2 emissions in oil and gas drilling operations
  • By expanding Sekal's services, improve efficiency of drilling operations in oil and gas well development, which contribute to reduce construction period and CO2 emissions.
Metal Products Tubular products Increase the supply of tubular products for projects related to hydrogen, CCS/CCUS*, and energy transition
  • Expanded sales of tubular products for projects related to CCS/CCUS* and geothermal energy
Transportation & Construction Systems Mobility Promote the widespread use of EVs/PHVs/FCVs and the development of EV infrastructure
  • Started the sales of retrofitted EV buses to Nishitetsu (40% fewer CO2 emissions per bus). Also plan to increase the sales to Nishitetsu, then expand to other bus operator in Japan in the next phase.
  • Delivered 101 EV taxis and completed installation of 67 standard chargers to Daiichi Koutsu.
  • Completed a trial of an EV car sharing service for corporate clients, and now continuing to investigate introduction of the service. Working with local governments to investigate secondary market use of EVs as official government vehicles.
Transportation & Construction Systems Leasing Promote sustainability-related businesses in SMFL (cumulative value of contracts from FY2020 to FY2029: 1 trillion yen)
  • Cumulative value of contracts reached approximately 330 billion yen in FY2022. Announced in June 2023 that the 1 trillion yen target for cumulative value of contracts has been brought forward to FY2025, and that the target for FY2029 has been lifted to two trillion yen.
Transportation & Construction Systems Ship At Oshima Shipbuilding Co., Ltd., continue selling new ships with 30% reduction in CO2 emissions (compared to 2008). Continue developing new ships with 40% reduction in CO2 emissions
  • Continue sales of low emisson newbuilding ships (ships with 30% reduction in CO2 emissions i.e. LNG fueled ships, etc.) built by Oshima Shipbuilding. In December 2022, Oshima Shipbuilding obtained an approval in principle fromaship classification society for the ammonia fueled ship.
Transportation & Construction Systems Ship Contribute to the reduction of CO2 emissions from both coastal and ocean-going ships by promoting Corvus Energy marine batteries
  • Continued sales and maintainance service for marine battery systems towards the Japanese market through Sumisho Corvus Energy Co., Ltd., a joint venture with energy storage system provider, Corvus Energy.
Transportation & Construction Systems Commercial aviation Build and expand next-generation air mobility services utilizing electric vertical take-off and landing (eVTOL) aircraft and other methods
  • Invested in Volocopter GmbH, a manufacturer of eVTOLs, to build new sustainable social infrastructure.
  • Conducted various proof-of-concept trials to develop and optimize a drone-based logistics network and promote carbon neutrality in the local regions.
Transportation & Construction Systems Commercial aviation In the aircraft leasing and engine leasing portfolio, increase the portion of more fuel-efficient and more environment-friendly aircraft and engines (target: 70% for aircraft and 50% for engines, of the total portfolio, respectively)
  • Improvement to approximately 77% for new aircraft (compared to 73% in the previous year) and approximately 72% for new engines (compared to 63% in the previous year)
Transportation & Construction Systems Mobility Expand EV charging network in the Nordic parking business in order to promote the use of EVs
  • The number of EV charging at the end of FY2023 was as planned
Transportation & Construction Systems Fleet management Build up an EV life cycle management model in which EV is owned over the long term, from use in a vehicle to use as a reused battery, utilizing them for both mobility and energy
  • DriveElectric, an EV fleet management company based in the UK, has partnered with CrowdCharge, an energy management software company also based in the UK, to launch a smart EV charging management service in FY2023, as well as a dashboard of energy and carbon consumption for EV charging.
Transportation & Construction Systems Aerospace Defense & Technology SBU Efforts for hydrogen-fueled aircraft businesses, realizing carbon neutral
  • Sumitomo Precision Products CO.,LTD. continued to develop technologies for next-generation (hydrogen-powered, electric) aircrafts.
Transportation & Construction Systems Beyond Mobility Reduce loaded aircraft weights and contribute to reduced fuel costs and CO2 emissions by providing a clothes sharing service, using clothes destined for disposal, to inbound travelers and business travelers
  • Established a team and operational structure in preparation for commencing a service trial with a major airline.
Transportation & Construction Systems Fleet management Promote greater use of EVs for commuting and development of EV charging infrastructure in workplaces
  • Established a new company in April 2023 to focus on commuter EVs and concludes dedicated energy providing contract with one of customers.
Mineral Resources, Energy, Chemical & Electronics Power generation fuel Promote the commercialization of blue carbon, and the development of blue carbon-based blue economy businesses
  • We continued supports for the efforts to absorb CO2 through maintaining and conserving seaweed beds in Hirono Town, Iwate Prefecture. The town got additional certifification for 346.5 tonnes of blue carbon credits in 2023. In collaboration with local banks, we supported in selling the credit including past certification.
EII Green energy Build a combined clean energy services model that leverages our integrated corporate strength, creating new demand and synergies with mobility, DX, smart infrastructure, etc.
  • As a specific project of the clean energy platform businesses, we try to demonstrate strength by combining hydrogen and power storage in Hokkaido, developing a renewable energy value chain in the Kanto area, and utilizing used EV batteries.
●Capture, store and utilize CO2 via carbon recycling, forestry business, CCS, and emissions credit trading, etc.
EII Forests Acquire and expand the scale of forest resources and improve the value of forest assets
  • Continued developing projects to acquire and expand the scale of forest resources
EII Green energy Promote carbon credit businesses that contribute to real CO2 emission reductions
  • Promote the carbon credit development and marketing business through internal and external collaborations.
  • Carbon Capture, Utilization and Storage: Technologies for sequestration and effective utilization of high-concentration CO2 emitted from industrial activities, and direct air capture technologies for capturing CO2 directly from the atmosphere

Please see here for more details on KIRIU.

Please see here for more details on the Forestry business in New Zealand.

Circular Economy - Representative Initiatives

Long-term goals: Shift to recyclable, efficient technologies and products
Medium-term goals: Use renewable and recyclable raw materials, collect waste, and promote improved efficiency of product usage
Business unit Field Goals Progress
●Expand use of raw materials derived from recycled or renewable resources.
Infrastructure PET bottle recycling Expand the PET bottle recycling business (Tomra Japan Ltd.)
  • Increased resource recovery by 6% (compared to FY2022)
Infrastructure Logistics Accelerate considerations for switching to biotech inner bags attached to the inside of containers used for transportation and storage
  • Since it is difficult to procure bio-based films around the world, we have successfully developed and commercialized an eco-liner that contains an additive (Green Nano) that adsorbs GHG within the film, reducing GHG emissions by 16% during waste incineration.
Living Related & Real Estate Fresh Produce At Fyffes, all packaging will be compostable, recyclable or reusable by 2025
  • Completed introduction of compostable, recyclable, and reusable packaging for 98.78% of all products
Mineral Resources, Energy, Chemical & Electronics Chemical Expand sales volume of high value-added resins, demand for which is expected to grow with the shift to lighter weight automobiles and EVs
  • Commercial operation started in February 2023. Keep stable operation thereafter.
Mineral Resources, Energy, Chemical & Electronics Chemical Expand product sales volumes for a manufacturer of plastic substitute materials (plant-derived materials) in which Sumitomo Corporation has invested
  • Completed construction of a new plant in January 2023. Commercial operation has been started.
Mineral Resources, Energy, Chemical & Electronics Midstream/ Downstream of metal resources Sell Security Matters Limited technologies and products for tracking raw materials and products in the supply chain
  • Conclusion of a global exclusive distribution agreement with Security Matters in the non-ferrous metals industry
Mineral Resources, Energy, Chemical & Electronics Pharmaceuticals & Cosmetics Expand sales volume of sustainable cosmetic ingredients
  • Cosmetic ingredient distribution companies, subsidiaries of Cosmetics Business Unit, are trying to expand their ranges of natural and petroleum-alternative cosmetic ingredients, and Summit Cosmetics Corporation is working with SC Foods Co., Ltd. to establish a supply chain using food residues and other ingredients as raw materials
EII Storage battery Promote the reuse of EV batteries and develop technologies. Create reuse opportunities
  • In FY2023, we prepared for the partipation in the newly established ancilary market in Japan utilizing the large size energy storage project at Chitose City, Hokkaido, which was built using EV batteries (mixture of new and reuse batteries).

PLease see here for more details on Large-scale energy storage business.

Long-term goals: Sustainable use of natural resources
Medium-term goals: Reinforce the sustainable procurement system for major natural resources used by the Group
Business unit Field Goals Progress
●Identify major natural resource-related commodities requiring sustainable procurement, establish procurement policy, promote certification, and strengthen voluntary auditing system.
Living Related & Real Estate Food distribution Promote the sustainable procurement of palm oil
  • Maintained Roundtable on Sustainable Palm Oil (RSPO) Mass Balance certification
Living Related & Real Estate Food distribution Procure and promote the widespread use of Bird Friendly®-certified coffee
  • Maintained Bird Friendly® certification
EII Forestry Obtain forest certification for most of our forested land holdings, and implement sustainable management
  • Continued to obtain CDP forest assessments
EII Forestry Procure only forestry products managed in accordance with internationally recognized certification programs, of which legality and sustainability have been certified, and monitor reforestation using remote sensing technologies (satellite image analysis)
  • Conducted a reforestation monitoring trial using satellite image analysis
●Improve efficiency of product usage and expand businesses that promote longer product life (sharing, sales of used items, leasing, rentals, etc.) .
Transportation & Construction Systems Automotive sales & marketing Promote product lifetime extension through used car sales and after-sales services
  • Focused on used car sales and after-sales services to work on extending product lifetimes
Transportation & Construction Systems Mobility Promote EV subscription service in Sweden
  • Increasing the number of customers by expanding the offering models and products
Media & Digital Communications Achieve resource savings through the handset lifecycle management businesses
(new device sales, collection, refurbishing and redistribution)
  • Used handsets collection and redistribution to domestic and overseas markets
  • A pilot project using KIOSK trade-in machines for used devices in the Fukuoka area of Japan

Respect for Human Rights - Representative Initiatives

Long-term goals: Respect human rights through all of our businesses and supply chains
Medium-term goals: Promote and ensure respect for human rights in accordance with the United Nations Guiding Principles on Business and Human Rights and Sumitomo Corporation Group’s Human Rights Policy
Business unit Field Goals Progress
●By 2023, achieve 100% participation rate in human rights education based on the Guiding Principles, and 100% implementation rate in regional organizations and subsidiaries.
Company-wide ー By 2023, achieve 100% participation rate in human rights education based on the Guiding Principles, and 100% implementation rate in regional organizations and subsidiaries.
  • Rolled out human rights education tool (e-learning) to all officers and employees of Sumitomo Corporation and achieved 100% participation rate in FY2022. E-learning in 4 languages has already been rolled out to domestic and overseas regional offices and group companies in FY2023.
●Strengthen risk analysis in human rights due diligence to accurately assess risks in all businesses, including the supply chain, and implement risk mitigation measures by 2025. Establish a more effective grievance mechanism based on assessment results.
Company-wide ー By 2025, accurately assess risks for all operations, including supply chains
  • Began human rights due diligence on a business-unit basis with the aim of covering all businesses by 2025, and completed due diligence for all business units by the 1st half of FY2024. Some risk mitigation measures to the identified human rights risks are being addressed and monitored continuously.
  • We joined an external platform, the Japan Center for Engagement and Remedy on Business and Human Rights (JaCER), to improve our grievance mechanism in compliance with the eight requirements of the UN Guiding Principles on Business and Human Rights, and updated our web contact.
Living Related & Real Estate Food distribution In industries with high human rights risks, understand the human rights risk situation of suppliers
  • Conducted questionnaire surveys on human rights at about 210 overseas plants and farms
Living Related & Real Estate Fresh Produce 【Fyffes】
[2025]
・ Deliver a gender equality program to all employees of our own facilities in Central and South America, and to 50% of suppliers as well by 2030 [2030]
・ Provide human rights training to all stakeholders in the supply chain, and complete this training for our own employees and managers by 2025 ・ Eliminate gender pay gaps within our own operations
  • 100% of owned sites started training and over 50% employees have been trained (11,810) to date; 37% suppliers have started gender training.
Living Related & Real Estate Fresh Produce 【Fyffes】
・ Provide training on the freedom to unionize
[2021]
・ Provide training to all managers
[2025]
・ Provide training to 90％ of all employees
  • One-third of workers trained on human rights.
Media & Digital Communications Ensure that business operations comply with our Human Rights Policy
  • In overseas telecommunications business, we have carried out a human rights impact assessment and we will tackle and consider further actions to mitigate and prevent risks

Please see here for more details on our human rights due diligence.

Medium-term goals: Reinforce the sustainable procurement system for major natural resources used by the Group
Business unit Field Goals Progress
●Strengthen efforts to achieve zero accidents at major business workplaces, focusing on manufacturing, processing, and projects involving large-scale construction.
Company-wide ー Strengthen efforts to achieve zero accidents
  • To prevent occupational accidents, we are working to create a common sense of value for safety, establish a safety management system, and improve occupational safety at key sites. Our main achievements in FY2023 are described below. Going forward, we will continue striving to prevent occupational accidents by stepping up various initiatives, such as education and awareness-raising.
  • Held cross-organizational occupational safety liaison meetings to share case studies of workplace accidents and best practices for improvement within the Group
  • The Disaster Response & Safety Management Department provided first-response support for occupational accidents that occurred within the Group
  • Disaster Response & Safety Management Department members visited our material subsidiaries in Japan and overseas to conduct safety seminars and site inspections
Metal Products Steel products Implement intrinsic safety assurance activities and employee training, and improve activities through PDCA cycle (utilizing TQM management techniques)
  • Continued conducting self-check based on a safety checklist and implementing the PDCA cycle for improvements. Continued conducting safety audits of 17 group companies and 34 plants, and collaborating with each group company to eliminate work inside fenced areas during continuous operation. (continuation)
  • In FY 2024, Sumitomo Corporation Global Metals introduce safety policy in order to raise all employee's awareness of safety with the ownership. (New)
Metal Products Tubular products Under the slogan of “Beyond ZERO Harm,” aim to measure and minimize the Lost Time Injury Frequency Rate (LTIFR) and Total Recordable Incident Frequency Rate (TRIFR) at each work site
  • There was 1 LTI. LTIFR and TRIFR were both 0.08.
    As an awareness campaign to achieve zero lost time and work-related accidents, created a booklet introducing accidents with high frequency and how to handle them. The booklet is distributed to global Tubular members.
    Also e-learning in Japanese and English for HSSE (Health, Safety, Security and Environment) has been provided.
Transportation & Construction Systems Automotive manufacturing Reduce the number of work-related accidents
  • Reduced work-related accidents at KIRIU CORPORATION
Transportation & Construction Systems Construction & mining systems sales/construction equipment rental Work-related accidents
・ LTIR
2022: Companywide average of 0.75 or less
2023: Companywide average of 0.5 or less
・ Safety audits
FY2022: 3 operating companies
FY2023: 4 operating companies
  • LTIR：
    Because G-CMSD significantly achieved the target of the groupwide average 0.75 or less in 2022 (the result was 0.52), the group raised the target to 0.5 or less in 2023 and worked on further improvement, but as a result, the groupwide average for 2023 was 0.65, which was below the target. Although there are possible special factors, such as an increase in minor accidents because each company significantly increased new mechanics in response to the increase in demand due to the recovery from the COVID-19, and an increase in the number of accident reports due to improved reporting accuracy at each company, the group will continue to work on reducing accidents with the aim of achieving an LTIR of 0.5 or less in 2024.
  • Safety Audit：
    Safety Audits were completed for 4 group companies in FY2023 as planned. 4 group companies are scheduled to be audited in FY2024 and the group will work on further reduction of accident.
Infrastructure Power plant infrastructure EPC Aim for zero Lost Time Injuries (LTI) through establishing HSE rules and through on-sight training and meetings
  • HSE rules were defined in each project. There were no incidents occurred that led to LTIs.
Living Related & Real Estate Fresh Produce At Fyffes, by 2025 no work-related fatalities and no severe work-related injuries
  • A companywide safety management system rolled out in Latin America
  • 0 fatality in FY2023.
Mineral Resources, Energy, Chemical & Electronics Electronic parts Maintain zero work-related accidents at SUMITRONICS CORPORATION (in factories)
  • Maintained zero work-related accidents
Mineral Resources, Energy, Chemical & Electronics Upstream of metal resources Reduce work-related accidents in the upstream mineral resources and energy business
(The Ambatovy Project)
  • In 2023, the total recordable injury frequency (TRIF) was 0.117, achieving the annual safety target 0.125 for the worksite
  • Identified causes at the time of the work-related accidents, took thorough measures to prevent recurrence, and alerted everyone within the company through campaigns, etc. To foster a culture of safety, implemented initiatives to formulate a process safety management system, define and implement work-appropriate standard operating procedures, and update as necessary
Medium-term goals: Achieve a diverse organization grounded in mutual respect
Business unit Field Goals Progress
●Provide a safe working environment that is free from discrimination and harassment.
Company-wide ー Provide a safe working environment that is free from discrimination and harassment
  • As part of activities raising awareness for human rights and Dowa issues, conducted training for Group executives and employees led by an outside expert
  • Conducted mandatory training for all employees to prevent harassment as an awareness activity to eliminate all forms of harassment.
  • Also provided tailor-made trainings (prevention of power harassment) for individuals according to the needs of the organization.
  • Implementation and monitoring of initiatives to enhance employee engagement, such as the company-wide working group activities.
●Promote human resource management that enables individuals to demonstrate their abilities regardless of nationality, age, gender, sexual orientation, gender identity, or any other attributes or values.
Company-wide ー Promote human resource management that enables individuals to demonstrate their abilities regardless of nationality, age, gender, sexual orientation, gender identity, or any other attributes or values
  • Continued Diversity Weeks (intensively developed programs aimed at permeating and realizing DE&I) and implemented global collaboration
  • In Japan, set numerical targets for promoting women’s participation and advancement in the workplace and took actions to achieve them.
  • Actively appointed external personnel to executive officer positions, and female and younger employees to executive management and general managerial positions
  • In recognition of the comprehensive LGBTQ+-related measures that are being continuously implemented, was awarded the highest gold rating in PRIDE Index 2023
  • Supported overseas regional organizations in their DE&I measures tailored to the actual circumstances at each site and country, and strengthened global collaboration

Development of Local Society and Economy - Representative Initiatives

Long-term goals: Contribute to development of local industries and human resources
Medium-term goals: Develop local industries, create jobs, and develop human resources through the Group’s global business operations
Business unit Field Goals Progress
●Promote sustainable, highly productive and value-added industries, and coexist with local communities through business.
Transportation & Construction Systems Leasing Expand efforts for the MIRAI 2030™ SDGs lease and introduce sustainability-related products
  • SDGs Leasing "Mirai 2030®" and Sustainability Link Leasing/Financing Transactions Expanded
Infrastructure Overseas industrial park Promote the overseas industrial park business, continue to attract companies, create jobs, and achieve regional development
  • Promoted overseas industrial park business (Vietnam and Bangladesh) and new industrial park development (Vietnam) steadily.
Living Related & Real Estate Supermarket Expand the introduction of new service menus, with stores functioning as local community hubs

【SUMMIT,INC】

  • Maintained contributions to local communities through participation in those communities and events and handling locally grown vegetables.
  • "Health Community Corner," commonly known as "Kenkomi,"* as a service based on a theme of food and health expanded to 7 stores by opening 1 new stores in FY2023.
Mineral Resources, Energy, Chemical & Electronics Upstream of metal resources Contribute to development of industries in Madagascar
  • Continued efforts to improve the skills of local employees through enhanced student internship programs and various training programs, with the aim of securing talented Madagascar human resources
Mineral Resources, Energy, Chemical & Electronics Agricultural input Improve productivity by making agricultural production more stable and efficient
  • Through Agro Amazonia Produtos Agropecuários S.A., a company involved in direct sales of agricultural materials in Brazil’s midwest, acquired Nativa Agrícola e Representação LTDA., a company involved in the same business in Brazil’s southeast, to expand geographical reach and enhance functions
●Create employment and develop management and highly skilled human resources at the Group's business sites.
Transportation & Construction Systems Automotive sales & marketing Develop human resources in Iraq and Libya
  • Iraq:
    Reached a cumulative total of 108 graduates from job training. Conducted job training in collaboration with UN’s IOM and UNDP
  • Libya:
    Reached a cumulative total of 507 graduates from job training. Conducted job training in collaboration with UNDP
Mineral Resources, Energy, Chemical & Electronics Electronic parts Provide job training and worker education to employees (factories)
  • Maintained 100% job training rate at SUMITRONICS CORPORATION
Living Related & Real Estate Real Estate In order to contribute to solving the social issue of prejudice and discrimination against "disability" and to improve the value of our properties from the perspective of space decoration, we will collaborate on spatial design with Heralbony Co., Ltd., which aims to change the image of "disability" and create a new culture based on welfare.
  • Appointed Heralbony Co., Ltd. in 6 projects
  • A collaborative service by Summit and Tomod’s designed to provide a “food and health” themed community space that is accessible to local customers.
Long-term goals: Develop industrial and social infrastructure
Medium-term goals: Establish industrial and social infrastructure that contributes to the sustainable development of society
Business unit Field Goals Progress
●Promote infrastructure that enables access to high-quality energy, water, transportation, logistics, communications, and financial services, as well as businesses that enhance urban functions.
Transportation & Construction Systems Commercial aviation Build and expand the helicopter leasing portfolio, mainly focused on the helicopters for emergency medical services and disaster relief missions
  • Sumitomo Mitsui Finance and Leasing Company, Limited has grown its helicopter leasing portfolio, mainly focused on the helicopters for emergency medical services and disaster relief missions(72% of overall portfolio).
    Total assets grew 2.8 times in the first three and a half years of business
Transportation & Construction Systems Beyond Mobility Contribute to the efficiency and sophistication of the logistics industry in Japan, which is facing a logistics crisis, through entry into and expansion of the Robotics as a Service (RaaS) business
  • Executed a comprehensive distributorship agreement for AI robotics software in high-precision robots for logistics warehouse automation in Japan
Infrastructure Generation Contribute to local community and economic development through the steady execution of existing projects
  • Maintained stable operations at existing power plants currently in operation
Infrastructure Water / railroads Expand high-quality social infrastructure (water, railroads)
  • Maintain the treatment scale of existing water projects (excluding the U.K. and Mexico, which were both strategically exited in FY2023).
  • Continuing efforts to execute and fulfill current railway projects as well as to secure new projects in the pipeline.
  • Expansion of railway business portfolio contributes to solving social issues such as traffic congestion (Ridership of passengers on Manila LRT-1 have recovered to over 70% of pre COVID-19 level).
Media & Digital Communications Develop telecommunications infrastructure in emerging countries and roll out various value-added services on these platforms
  • Developing telecommunications infrastructure in Ethiopia

Please see here for more details on Integrated telecommunications business in Ethiopia.

Improvement of Living Standard - Representative Initiatives

Long-term goals: Provide advanced lifestyle-related services
Medium-term goals: Deliver advanced lifestyle services that help to solve social issues such as urbanization and aging populations
Business unit Field Goals Progress
●Provide more advanced services and new functions that improve the standard of living, such as mobility, media and telecommunications, healthcare services, and smart city development, based on new technologies and concepts.
Transportation & Construction Systems Mobility Improve convenience for consumers through the mobile shop services business that capitalizes on mobility and provide mobile shop services to revitalize communities
  • Completed the proof-of-concept trials for a mobile shop services business utilizing mobility
Infrastructure Smart city Developing infrastructure that contributes to better lifestyles for people through the sustainable city development
  • The North Hanoi Sustainable City：We are proceeding with land acquisition procedures for a sustainable city development project. We are considering attracting medical and educational institutions that meet the needs of residents.
Infrastructure Overseas industrial park Provide a variety of welfare services to build local infrastructure for employees working at our industrial parks
  • Thang Long Industrial Parks in Vietnam：As part of our environmental initiatives, we have expanded the installation capacity of rooftop solar power generation using the rooftops of tenant companies to more than 50 MW, which we started in FY2020.
Media & Digital 5G Promote businesses aimed at realizing a 5G society and sustainable cities (base station sharing, local 5G)
  • Provided 5G base station sharing services mainly in major cities throughout Japan
  • Provided Local 5G infrastructure services for Cable Television Operators, and conducted Local 5G proof-of-concept trials with railroad operators for commercialization
Media & Digital CATV Through JCOM Co., Ltd., provide online entertainment and lifestyle-related services that enhance convenient living and contribute to a comfortable and exciting life
  • Provided entertainment and lifestyle-related services, such as CATV, Internet, fixed phone, electric power, and mobile phone, to 5.68 million households
Media & Digital CATV Provide DER services such as solar PPA and storage batteries for domestic residential customers
  • Planned to conduct service trials in collaboration with cable operators
Media & Digital TV shopping Through Shop Channel, provide products and services that contribute to comfortable and exciting lifestyles
  • Via Shop Channel, sold curated products such as fashion items and beauty-related products, provided services such as travel, hobby and entertainment experiences, and promoted social commerce businesses using social media
Living Related & Real Estate Health Care Build a domestic healthcare platform to support Japan’s aging society
  • Provided pharmaceutical and daily necessity sales and the functions of a dispensing pharmacy through Tomod’s drugstore and dispensaries and Yakuju Corporation dispensing pharmacies mainly in the Tokyo metropolitan area (253 Tomod’s stores and 145 Yakuju stores as of the end of FY2023)
  • Enhanced the functions of dispensing pharmacies by offering home dispensing and online dispensing services
Living Related & Real Estate Health Care Provide optimal medical care in optimal locations and help keep the costs of healthcare down in each country
  • Strengthen the foundation of the managed care business through investment in existing business and organic growth.
  • Additionally, promoting customer convenience through the advancement of online prescription and app utilization.
  • Expantion of the clinic business, the number of clinics has grown from 18 at the beginning of the collaboration to 104 (as of March 2024).
Mineral Resources, Energy, Chemical & Electronics Agri Leverage new technologies to optimize agricultural inputs, improve productivity, and further stabilize incomes for crop producers
  • Through collaboration with group companies and new business partners, currently examining precision agriculture technologies and services that contribute to improved crop yields and work efficiency, Reduction of environmental damages and traceability, and Sustainable Food Production, resolving protein gap crisis.

Please see here for more details on Next-generation agribusiness.

Quality Education - Representative Initiatives

Long-term goals: Contribute to quality education
Medium-term goals: Provide quality and equal learning opportunities through 100SEED activities
Business unit Field Goals Progress
●Quantitatively expand the scope of learning opportunities.
Company-wide ー Quantitatively expand the scope of learning opportunities
  • Through the “Mirai School” career education support program, supported career education for a cumulative total of 17,400 students at 103 high schools across Japan in the three years from 2020 to 2023
  • Through “Pro Bono Educational Support,” assisted a cumulative total of 35 organizations to strengthen their organizational foundations over these four years in order to support non-profit organizations (NPOs) working to address education issues
  • Through “Educational Support for a Multi-cultural Society”, supported eight NPOs and children with foreign roots
●100% satisfaction of beneficiaries.
Company-wide ー 100% satisfaction of beneficiaries
  • Achieved nearly 100% satisfaction among beneficiary NPOs and high school students
●Continue to have at least 5% of all employees participate annually (scope is Sumitomo Corporation, regional organizations and Group companies).
Company-wide ー Continue to have at least 5% of all employees participate annually (Boundary is Sumitomo Corporation, regional organizations and Group companies).
  • More than 5% of employees participated at the Head Office and regional organizations in Japan and overseas. (In FY2023, 68 projects were implemented in 24 countries)
  • 100SEED received a special award at the 19th Corporate Philanthropy Award in recognition of company-wide efforts involving both employees and management

Please see here for more details on 100SEED.

DFF Inc.