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.

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.

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.

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 Material Issues and the main examples of company-wide initiatives for each of them.

Material Issues and Medium- and Long-term Goals

Key Company-wide Initiatives in FY2024

Please refer to the links below for more information on company-wide initiatives.

• Social Contribution Activities
• Climate Change
• Sustainable Use of Natural Resources and Circular Economy
• Biodiversity
• Respect for Human Rights
• Our People
• Diversity, Equity & Inclusion
• Corporate Governance