Environment (Climate Change)

Part of the following environmental data has obtained third-party assurance. For more information, please refer to ESG Communication Book 2023.

• The boundary of “Consolidated” is non-consolidated, consolidated subsidiaries and Joint operations. We have added Joint operations to the boundary from FY2020. For Joint operations, the amount equivalent to the investment ratio as of the end of March of the reporting period is included in the environmental data.
• CO2 emission factors for electricity: (market based method)
  (Non-consolidated in Japan) The adjusted emission factors of individual power companies. Before FY2020 results, the basic emission factors were used.
  (Consolidated subsidiaries in Japan) The average emission factors of all power companies.
  (Overseas) Emission factors from electricity generation are based on the country-specific data in 2020 listed on "Emissions Factors 2022", an IEA (International Energy Agency) statistics. Before FY2020 results, Emission factors from electricity generation are based on the country-specific data in 2013 listed on "CO2 EMISSIONS FROM FUEL COMBUSTION 2016 EDITION".
• CO2 emission factors other than those from electricity generation are based on a manual for GHG emissions accounting, reporting, and disclosure systems published by Japan’s Ministry of the Environment and Ministry of Economy, Trade and Industry.
• The breakdown of 1,821 thousand t-CO2ein FY2022 by business activity is 757 thousand t-CO2e for business other than power generation and 1,065 thousand t-CO2e for power generation.
• The main reason for the increase of GHG emissions in FY2020 compared to FY2019 is the addition of Joint operations to the boundary of data. We couldn't collect the environmental data for 38 sites due to COVID-19 lockdown or working from home in FY2019. In FY2018, GHG emissions of these sites were equivalent to about 5.2% of the total GHG emissions.

(Reference)

• CO2 emissions by activity are calculated as the target of the Sumitomo Corporation Group's carbon neutrality. This total includes the above [GHG Emissions (Energy-related CO2)]. For details, please refer to the special feature [Climate Change Initiatives] in this site

• Group companies emitting more than 3,000 t-CO2e for each gas per year are subject to the aggregation of Scope1<Non energy-related CO2 and greenhouse gases other than CO2>, under the Greenhouse Gas Emissions Accounting, Reporting, and Disclosure System in Japan.
• In FY2019, we aggregated non-consolidated and consolidated subsidiaries in Japan and the boundary of Scope1<other GHGs> was expanded to consolidated (excluding Joint operations) in FY2020. From FY2021onward covers consolidated (including Joint operations). For Joint operations, the amount equivalent to the investment ratio as of end of March of the reporting period is included in environmental data.

• The boundary of non-consolidated (in Japan) includes the head office, domestic branches and sub-branches.
• GHG emissions from Upstream transportation and distribution include the transport of cargo within Japan for which Sumitomo Corporation is the cargo ownerand are calculated based on a manual for GHG emissions accounting, reporting, and disclosure systems published by Japan’s Ministry of the Environment and Ministry of Economy, Tradeand Industry.
  Sumitomo Corporation complies with the Act and reduces the use of energy of transportation through promotion of modal shift (utilization of railroads and vessels), optimization of delivery routes and loading on vehicles, promotion of eco-driving, etc. We have set a target of reducing the use of energy from Upstream transportation and distribution per shipping weight by at least 1% annually in Japan.
• GHG emissions from waste are calculated from all general waste of Sumitomo Corporation.
  The results were calculated using the emission intensity for each type of waste, which is published in the emission intensitydatabase for calculating greenhouse gas emissions and other emissions by organizations throughout the supply chain. The calculation of GHG emissions for FY2022 uses the emission intensity database Ver.3.3.
• GHG emissions due to overseas business trips are the emissions from flights departing from and arriving in Japan that SumitomoCorporation employees took. Business trip destinations are classified into 12 areas and passenger-kilometers are estimated based on the travel distance between Japan and representative airport of each area. GHG emissions due to overseas business trips are calculated by applying CO2 emission factors published by the UK‘s Defra to the passenger-kilometers.
• GHG emissions from commuting are those from the commuting of Sumitomo Corporation‘s employees working in Japan, calculated by using the emissions factors per passenger-kilometer for passenger transport by transport mode published in the Ministry of Land, Infrastructure, Transport and Tourism publication “CO2 Emissions in the Transport Sector” up to FY2020.After FY2021 results were calculated using emission intensity per number of employees and working days by work type and city classification, which is published in the emission intensity databasefor calculating greenhouse gas emissions and other emissions by organizations throughout the supply chain. FY2022 results were based on this database (Ver. 3.3).
• GHG emissions from downstream leased assets are calculated based on the Act on the Rational Use of Energy in Japan.(Current: the Act on Rationalizing Energy use and Shifting to Non-fossil Energy in Japan) for buildings owned by Sumitomo Corporation and leased to other companies. The basic emission factor is used for the CO2 emissionfactor for electricity.
• The total GHG emissions (total amount of the above Scope1, 2 and Scope3) were 2,214 thousand t-CO2e／2,327 thousand t-CO2e／2,128thousand t-CO2e in FY2020, FY2021, and F2022 respectively.

• The boundary of “Consolidated” is non-consolidated, consolidated subsidiaries and Joint operations. We have added Joint operations to the boundary from FY2020. For Joint operations, the amount equivalent to the investment ratio as of the end of March of the reporting period is included in the environmental data.
• Energy consumption does not include energy derived from biomass fuels.
• Energy conversion factor from electricity consumption: 3.6 (MJ/kWh).
• Energy conversion factors from other than electricity consumption are based on the Act on the Rational Use of Energy in Japan. (Current: the Act on Rationalizing Energy use and Shifting to Non-fossil Energy in Japan).
• The main reason for the increase of energy consumption in FY2020 compared to FY2019 is the addition of Joint operations to theboundary of data.
• Electricity consumption includes the electricity purchased from power generation companies within the boundary of environmental data.
• The amount of electricity consumption which was derived from renewable energy was 5,264MWh in FY2022.
• We couldn't collect the environmental data for 38 sites due to COVID-19 lockdown or working from home in FY2019.
  In FY2018, energy consumption of these sites were equivalent to about 7.3% of the total energy consumption and electricity consumption of these sites were equivalent to about 7.1% of the total electricity consumption.

Environment (Water Resources)

• The boundary of “Consolidated” is non-consolidated, consolidated subsidiaries and Joint operations. We have added Joint operations to the boundary from FY2020. For Joint operations, the amount equivalent to the investment ratio as of the end of March of the reporting period is included in the environmental data.
• We couldn't collect the amount of water withdrawal for 38 sites due to COVID-19 lockdown or working from home in FY2019. In FY2018, Water consumption of these sites were equivalent to about 50.5% of the total water withdrawal.
• The main reason for the increase of water withdrawal in FY2020 compared to FY2019 is the reactionary increase due to the lack of the environmental data for some sites by COVID-19 lockdown or working from home in FY2019, and the addition of Joint operations to the boundary of data from FY2020.
• Water Withdrawal in water-stressed areas isaggregated locations with a water risk level of 3 (High) or higher as water-stressed areas on the World Resources Institute (WRI)'s "WRI Aqueduct".
• In case where it is difficult to grasp the amount of discharged water, we estimate the amount of discharged water by assumingthat the amount of water Withdrawal = the amount of discharged water. As a result of our efforts to determine and refine the data, the amount of discharged water in FY2021 decreased significantly.
  Our Group consumes a high percentage of water for fruit cultivation (including evaporation) and recycling without dischargingwater after use, which results in a smaller amount of discharged water compared to the amount of water withdrawal.
• [Water Withdrawal -Components of Water Source-], [Water Withdrawal in Water-stressed areas], and [Water Discharge] are not subject to assurance engagement.

Environment (Resources and Waste)

• The boundary of “Consolidated” is non-consolidated, consolidated subsidiaries and Joint operations. We have added Joint operations to the boundary from FY2020. For Joint operations, the amount equivalent to the investment ratio as of the end of March of the reporting period is included in the environmental data.
  The boundary of "Non-consolidated (in Japan)" includes the head office, domestic branches and sub-branches.
• Waste emissions are for general waste from business operations; industrial waste and valuable resources are not included.
• We couldn't collect the data on waste emissions for 38 sites due to COVID-19 lockdown or working from home in FY2019. In FY2018, waste emissions of these sites were equivalent to about 0.6% of the total waste emissions.

Environment (Others)