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View Sumitomo Corporation's Sustainability : Commitment to External Initiatives
The Global Compact (GC) was proposed by the former UN Secretary General Kofi Annan in 1999 and officially launched in 2000 at the UN Headquarters in New York.
In March 2009, Sumitomo Corporation signed the UN Global Compact and declared its support for the 10 principles, shares the same values as our Corporate Mission Statement. We are raising the awareness of our officers and employees around the world regarding their purpose and making efforts to further increasing our corporate value by constantly seeking out areas of our business activities that can be improved in light of the values advocated by the 10 principles.
We are also actively participating in the activities of Japan’s local network, Global Compact Network Japan, as one of the member companies. In FY2022, we took part in working groups on: environmental management related to climate change, biodiversity and other environmental issues; human rights due diligence; reporting; supply chain; SDGs; ESG; CSV and circular economy. Through this involvement, we acquire information on recent global trends in these areas, learn of examples of superior initiatives, and are provided insight from specialists. This knowledge is utilized to help the Company promote sustainability.
1.Businesses should support and respect the protection of internationally proclaimed human rights; and
2.make sure that they are not complicit in human rights abuses.
3.Businesses should uphold the freedom of association and the effective recognition of the right to collective bargaining;
4.the elimination of all forms of forced and compulsory labour;
5.the effective abolition of child labour; and
6.the elimination of discrimination in respect of employment and occupation.
7.Businesses should support a precautionary approach to environmental challenges;
8.undertake initiatives to promote greater environmental responsibility; and
9.encourage the development and diffusion of environmentally friendly technologies.
10.Businesses should work against corruption in all its forms, including extortion and bribery.
As a member of the Subcommittee on Global Environment of the Committee on Environment and Safety of Keidanren (Japan Business Federation), we address global warming and climate change and helps design environmental policies that will not harm the economy. We also participate in the Sustainability Promotion Committee of Japan Foreign Trade Council, Inc. to discuss how to realize a low-carbon society and a recycling society, and how to comply with environment-related laws and regulations. In addition, we participate in the Social Contribution & ABIC Committee to cooperate in the expansion of ABIC activities and exchange information concerning social contribution activities in our industry. When assessing whether to join membership with an industry group, we confirm whether the group's climate change initiatives are consistent with our policy on climate change. Also, we implement appropriate climate change countermeasures regardless of the level of influence of the affiliated industry group.
In April 2023, Sumitomo Corporation joined the GX League* led by the Ministry of Economy, Trade and Industry (METI).
The GX League is a forum for companies, the government, and academic institutions, under which they challenge to realize carbon neutrality by 2050 and GX (Green Transformation) for entire societal transformation and collaborate each other to aim for sustainable growth both in the present and future society.
In addition to aiming for carbon neutral in 2050 as our group, we have been also actively working on initiatives that contribute to the carbon neutrality as an entire society and will further promote these efforts by utilizing the framework of the GX League.
For instance, we joined GX-ETS, and are implementing measures to achieve greenhouse gas emission reduction targets for the Phase 1 (FY2023-FY2025), FY2025 and FY2030 which are aligned with carbon neutrality by 2050. We also contribute to formulating GX-related rules through joining working groups. We expect to realize create new values on reducing carbon emissions and further activate trading under carbon credit markets thorough activities including the working groups.
Besides WG mentioned above, we participate in discussions on rule making by submitting our opinions to each WG under the GX League.
In 2024 April, Sumitomo Corporation made a commitment and joined a support team under “DECOKATSU” led by the Ministry of the Environment. DECOKATSU is a national movement to change people's behavior and lifestyles toward the achievement of the 2030 GHG emission reduction target and carbon neutrality in 2050. Under DECOKATSU, we are committed to contribute to realizing carbon neutrality as an entire society by expanding our renewable energy capacity up to 5GW by 2030 as our commitment under DECOKATSU.
We will continue to share our decarbonizing businesses and conduct networking with various stakeholders through DECOKATSU.
We are a shareholder of Japan CCS Co.,Ltd. (JCCS). The company is conducting demonstration tests on the use of CCS technology, which involves capturing and storing CO2 in the ground, as well as chemical synthesis of CO2.
We joined the Global CCS Institute (GCCSI) to meet conditions desirable to apply CCS. Since 2021, the company has been participating in the Asia CCUS Network to share knowledge with and educate Asian countries with regard to CCUS.
Sumitomo Corporation recognizes the importance of climate-related financial disclosures and supports the recommendations of the TCFD*, and further expand its information disclosure in accordance with the recommendations.
In January 2020, Sumitomo Corporation supported the "Keidanren Declaration on Biodiversity and Action Guidelines (Revised edition)" formulated by Keidanren and the Keidanren Committee on Nature Conservation.
This Declaration sets forth the determination and action guidelines to address biodiversity conservation issues from the corporate perspective in order to realize a sustainable society through building a society in harmony with nature. Recognizing the importance of biodiversity and natural activities, we will continue to work to maintain and conserve biodiversity to realize a sustainable society.
In March 2024, Sumitomo Corporation joined “Circular Partners (CPs)” led by the Ministry of Economy, Trade and Industry (METI). CPs is a forum of national and local government, universities, companies, industrial associations and relevant organizations which are ambitious and pioneering in the field of Circular Economy (CE). Under this partnership, members engage in consideration on necessary measures to realize CE.
We will continue our contribution to realizing CE by further promoting CE-related businesses while participating in rule making and networking with possible business partners under CPs.
Our business depends largely on natural capital, and biodiversity conservation is an important issue for the company. In June 2022, Sumitomo Corporation joined the TNFD Forum, a network of institutional supporters who share the vision and mission of TNFD*. In January 2024, we registered as a TNFD Early Adopter and expressed our commitment to early adoption of the disclosure recommendation published by the TNFD in September 2023. To accelerate efforts to conserve and restore natural capital through our business, we aim to disclose information based on the TNFD by the end of FY2025.
In January 2021, Sumitomo Corporation supported and signed the Stakeholder Capitalism Metrics, a standard for non-financial information disclosure released by the International Business Committee (IBC) of the World Economic Forum (WEF). While utilizing this metrics, we will further expand the disclosure of non-financial information to our stakeholders.
KNCF, which was established in 1992 and is comprised of Keidanren member companies that actively work on nature and biodiversity conservation, supports nature conservation activities and promotes exchange with NGOs. Sumitomo Corporation is participating in KNCF as its member.
CBCC was established in 1989 with the support of Keidanren to provide support for activities that help Japanese companies to be accepted as good corporate citizens by communities in which they operate outside of Japan. As a member of CBCC, Sumitomo Corporation collects the latest information about CSR and engages in CSR dialogue with related organizations in and outside Japan.