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Supply Chain Management

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The Sumitomo Corporation Group CSR Action Guidelines for Supply Chain Management

The Sumitomo Corporation Group has established the CSR Action Guidelines for Supply Chain Management. Through the implementation of these guidelines, we are aiming to realize a sustainable society by working together with our suppliers and business partners to achieve responsible value chain management. The Company provides numerous opportunities to promote the understanding and entrenchment of these guidelines, including training for new employees and locally hired employees, meetings within business units and domestic and overseas regional organizations, and pre-departure briefings with employees being sent on overseas assignments in order to promote sustainable supply chain management. We also share these guidelines with our suppliers and business partners and confirm their compliance as necessary.

In the event that we find violations of these guidelines in our supply chains, we will urge the suppliers, business partners or contractors, etc. to remedy and improve the situation, while providing support to them as needed. However, if there are no improvements to the situation by them, we will consider carefully whether to continue our business with them or not.

The Sumitomo Corporation Group CSR Action Guidelines for Supply Chain Management

Established in November 2009
Revised in November 2013

The Sumitomo Corporation Group aims to be a global organization that, by constantly staying a step ahead in dealing with change, creating new value, and contributing broadly to society, strives to achieve prosperity and realize the dreams of all our stakeholders through sound business activities in strict adherence to our Corporate Mission Statement, and the management style principle contained therein, wherein prime importance is given to integrity and sound management with the utmost respect being paid to the individual.

In order to promote sustainability and social wellbeing in accordance with our mission, the Sumitomo Corporation Group hereby sets down these CSR Action Guidelines for Supply Chain Management. With a view to further strengthening the global relations which form one of the foundations of our core competence of integrated corporate strength, we request our suppliers and business partners to kindly accept, understand, and practice these guidelines so that together we can achieve responsible value chain management.

Our suppliers and business partners are expected to:

  1. Respect human rights and not to be complicit in human rights abuses
  2. Prevent forced labor, child labor and the payment of unfairly low wages
  3. Not engage in discriminatory employment practices
  4. Respect the rights of employees to associate freely in order to ensure open and fair negotiations between labor and management
  5. Provide employees with safe and healthy work environments
  6. Protect the global environment and give due consideration to biodiversity
  7. Ensure the quality and safety of products and services
  8. Ensure fair business transactions, to abide by all applicable laws, rules and regulations, and to prevent extortion, bribery and all other forms of corrupt business practices
  9. Ensure appropriate information security
  10. Cooperate with members of local host communities and contribute to sustainable regional development
  11. Disclose information regarding the above in a manner both timely and appropriate.

Interpretation of The Sumitomo Corporation Group CSR Action Guidelines for Supply Chain Management

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Supply chain management policies for specific commodities

To realize a sustainable society by working together with our suppliers and business partners, Sumitomo Corporation has established the CSR Action Guidelines for Supply Chain Management. We have also established specific policies for natural resource-related commodities requiring sustainable procurement.

Forest Management Policy
Sourcing Policy for Forest Products

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Policy and Concept on sustainable procurement of palm oil

Palm oil is the most produced vegetable oil in the world which is used in a wide variety of products and closely related to our lives. Meanwhile, we, the Sumitomo Corporation Group recognize that palm oil comes with various social and environmental risks especially in the upstream supply chain, as its raw material, oil palm, may be linked to the deforestation of valuable forests, damage to biodiversity and impact on a local community due to plantation development, and forced and child labor in some production process.

Therefore, in order to fulfill social responsibility with relevant stakeholders based on The Sumitomo Corporation Group CSR Action Guidelines for Supply Chain Management”, we strive to build a high transparent supply chain with our suppliers through being a member of RSPO* as a group.

Our consolidated subsidiaries SC Foods Co., Ltd., a trading company specializing in food products, and Summit Oil Mill Co., Ltd, an edible oil manufacturer, conduct a survey of the suppliers with an aim of confirming the existence of inherent problems in human rights in the supply chain. In addition, Summit Cosmetics Corporation, our consolidated subsidiary specializing in cosmetics-related products trade, also survey of the suppliers and request compliance with “The “Sumitomo Corporation Group CSR Action Guidelines for Supply Chain Management” which committed to the sustainable procurement of palm oil.

  • Roundtable on Sustainable Palm Oil
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Supply Chain Management

In monitoring social and environmental risks in each business, we confirm the supply chain based on the Sumitomo Corporation Group CSR Action Guidelines for Supply Chains, individual procurement policies, and laws and regulations.

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Conflict Minerals Policy

The Dodd-Frank Act, which was enacted in July 2010, requires US-listed companies to trace the country of origin of minerals used in their products with in their supply chains to determine whether or not "conflict minerals“* produced in and around the Democratic Republic of the Congo are included. The results must be reported annually to the U.S.Securities and Exchange Commission (SEC) and disclosed on their websites. Such reporting is not mandatory for the Sumitomo Corporation Group itself because it is not US listed. However, if it is revealed that a conflict mineral is used by our partner company, our reputation could be harmed and it may affect customer selections. We therefore gather relevant information regularly and managed it unitarily.

  • The Dodd-Frank Act defines conflict minerals as tin, tantalum, tungsten and gold
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Measures Taken through Sustainable Supply Chain Certification

RSPO: RoundtableonSustainablePalmOil

We became an ordinary member of the RSPO in 2019. Further, our consolidated subsidiaries SC Foods Co., Ltd. And Summit Oil Mill Co., Ltd. obtained RSPO supply chain certification in 2021.


FSC: Forest Stewardship Council®

We obtain FSC (FSC-C016535) certification, an international forest management certification system, and provide customers with FSC-certified products mainly from our group-companies.

PEFC™: Program for the Endorsement of Forest Certification Schemes

We obtain PEFC™ CoC certification, an international forest management.

SBP: Sustainable Biomass Program

In September 2019, we became the first Japanese company to obtain SBP certification for CoC (Chain-of-Custody) and Collection and Communication of data. SBP is a certification system providing assurance that woody biomass used in energy production is sourced from legal and sustainable sources.


ISCC PLUS: International Sustainability & Carbon Certification PLUS

We obtain ISCC PLUS, an international certification for bio-based products. This allows us to trade ISCC certified products.

ASI: Aluminium Stewardship Initiative

We are a member of the Aluminium Stewardship Initiative (ASI), the global aluminium industry organization. Asan active participant in trading aluminium materials and products globally, we support ASI activities and standards across the global aluminium value chain.

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EcoVadis Certification for the Mineral Resources, Energy, Chemical & Electronics Business

EcoVadis provides a unique platform for assessing a company’s social and environmental sustainability performance. The following Sumitomo Corporation Group companies received EcoVadis Medals for their efforts.

Platinum Medal: Summit Cosmetics Europe
Gold Medal: Cosmotec International EspecialidadesCosmeticasLtda, Presperse Corporation
Silver Medal: Summit Cosmetics Corporation, SUMITOMO DEUTSCHLAND GMBH
Bronze Medal: Summit Pharmaceuticals International, Summit Pharmaceuticals Europe

  • Platinum is awarded to the top 1%, Gold to the top 5%, Silver to the top 25%, and Bronze to the top 50% of companies
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Measures Taken in the Chemical and Electronics Industries

Sumitomo Shoji Chemicals Co., Ltd. is mainly engaged in trading business of chemical and electronic products, which are involved in various industries and have a multitude of applications. The company confirms that each supplier of raw materials does not use conflict minerals, which are key funding sources for local armed groups, and appropriately manages chemical substances contained in their products in line with customer's demands, to make sure that no issues related to the environment and human rights have been reported. Sumitomo Shoji Chemicals is a member of Sedex, a nonprofit membership providing a world’s largest platform to manage and share ethical organization data within supply chains, with the aim of ensuring ethical and responsible business practices in global supply chains. The company has also passed the human rights and environmental audit of Sedex. Sumitomo Shoji Chemicals agrees on the Green Partner Environmental Quality Approval Program of its clients, whose objectives include the promotion of environmental protection. It also requires its suppliers of raw materials to agree on a green procurement program and other relevant programs and to comply with environment-related laws and regulations, and follows their implementation.

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Feiler Initiatives

Feiler Japan Co., Ltd., a subsidiary of Sumitomo Corporation, imports, plans, and sells products of the German textile brand “FEILER”, which features chenille fabrics. Feiler purchases all cotton yarns used for chenille fabrics from companies certified under OEKO-TEX® Standard 100*1, which meets international safety standards for textile products (as of November 2022).

  • OEKO-TEX® Standard 100 is the world’s highest standard for safe textile products, awarded only to products that have passed strict analytical tests for over 350 hazardous chemicals.
Feiler Initiatives
Feiler Initiatives
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SC Foods Initiatives: Contributing to society through fairtrade products

SC Foods Initiatives: Contributing to society
through fairtrade products

SC Foods Co., Ltd., a member of the Sumitomo Corporation Group, won the Silver Award in the Trader category at the first Fairtrade Japan Awards, announced in October 2023. This is an award sponsored by Fairtrade Label Japan, a specified non-profit organization, that honors and recognizes companies and organizations that have made outstanding achievements in promoting fairtrade in Japan. SC Foods was selected in recognition of its proactive import of fairtrade coffee and sesame seeds from around the world and its proactive actions to communicate the efforts being made in producing areas to manufacturers and consumers. The activities were considered as a significant contribution to the spread of fairtrade by serving as a bridge between producing areas and Japan.

SC Foods is constantly pursuing to distribute coffee that is not only delicious, but also contributes to a sustainable and rich future of food. Through the initiatives, SC Foods also aims to communicate the socially beneficial significance of the products. As part of this effort, SC Foods imports and sells fairtrade certified coffee, which is good for society and the global environment. Specifically, SC Foods collects detailed information from suppliers with whom we have built relationships over many years about how the fairtrade premium, which is paid based on the sales volume of fairtrade certified coffee, helps the production area. In addition to providing products to roasters and consumers who purchase our products, SC Foods also collaborates with fairtrade-related organizations both domestically and internationally to actively engage in activities to expand awareness and purchasing of fairtrade certification itself.

One example of fairtrade certified coffee SC Foods handles is Con Manos De Mujer (CMM: English name: WOMAN'S HAND). CMM certification was launched in 2010 by Mayacert S.A. together with the Asobagri cooperative with the aim of improving women's social status and economic environment. The premium added to the price of certified coffee is transformed into scholarships and medical expense subsidies, providing a platform for the female producers who belong to the cooperative to thrive and help them achieve self-realization.

SC Foods Initiatives
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Summit Initiatives: Handling of certified marine products

SUMMIT, INC, a member of the Sumitomo Corporation Group that operates a supermarket business, handles marine products that have acquired MSC*1 and ASC*2 certification for some of its marine products for the purpose of sustainable procurement and environmental and social considerations.

  1. MSC: A certification system for sustainable fisheries to protect the world's marine resources, administered by the Marine Stewardship Council.
  2. ASC: An international certification program for environmentally and socially responsible aquaculture products, administered by the Aquaculture Stewardship Council.
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Initiatives Taken in the Real Estate Business (Sumisho Realty Management’s ESG Policy)

Initiatives Taken in the Real Estate Business
(Sumisho Realty Management’s ESG Policy)

Initiatives Taken in the Real Estate Business

Sumisho Realty Management Co., Ltd., a real estate asset management business of the Sumitomo Corporate Group, has identified seven material issues and is implementing initiatives to adapt to changing global trends, meet the expectations of stakeholders, and contribute toward a sustainable society. As a real estate management company, it also believes that incorporating ESG elements into its investment decisions and operational processes is essential for maximizing medium- to long-term value for investors. For this reason, it defines and implements basic policies toward ESG.

Seven Material Issues & Initiatives

Material Issues Initiatives
  • Climate change mitigation
  • Consideration for reduction of energy consumption, CO2 emissions, etc.
  • Portfolio greening
  • Promote acquisition of green building certifications such as GRESB, CASBEE, DBJ Green Building Certification, BELS, etc.
  • Human resource development
  • Provide ample training programs
  • Support acquiring professional accreditations
  • Develop real estate professionals with an emphasis on teamwork
  • Diversity, Equity & Inclusion
  • Create a working environment in which diverse human resources can flourish over the medium to long term
  • Respect human rights
  • Provide ongoing employment support to achieve work-life balance
  • Tenant satisfaction improvement & contribution to local communities
  • Provide/operate facilities with high tenant satisfaction
  • Consideration for environment/society by collaborating with tenants, PMs, BMs, etc.
  • Contribute to and consider local community
  • Engagement with investors and trustworthy governance
  • Disclose information to investors and promote constructive dialogue
  • Develop a governance structure trusted by investors
  • Thorough compliance & risk management
  • Monitor and respond to risks
  • Appropriately operate an internal control system for compliance with laws and regulations

Sumisho Realty Management’s ESG Policy

ESG Policy

SRM believes that it is indispensable as a real estate management company to include environmental, social and governance (ESG) factors in investment decisions and management process for maximization of unitholder value over the medium to long term, and thus establishes the following basic policies on ESG and puts them into practice.

  1. Climate Change Measures
    SRM shall aim for realization of carbon neutrality through efforts on efficient use and reduction of energy and minimization of greenhouse gas emissions to as close to zero as possible at real estate under management. Furthermore, recognizing the importance of renewable energies, SRM shall consider possible utilization of such.
  2. Efforts on Reducing Environmental Burden
    Recognizing environmental burden at real estate under management, including water consumption and waste discharge, SRM shall continuously make efforts to reduce such.
  3. Consideration for Natural Environment
    With sufficient consideration for protection of natural ecosystem and other natural environment as well as for maintenance/conservation of biodiversity, SRM shall promote greener buildings and communities.
  4. Efforts on Improving Health and Comfort
    SRM shall strive to improve real estate value by raising tenant satisfaction through assessment of needs and appropriate implementation of measures for enhancing health/comfort of tenants and local communities.
  5. Efforts on Enhancing Resilience
    SRM shall strive to improve real estate value by retaining and gaining good tenants through enhancement of resilience of real estate under management against climate change and disasters. In addition, SRM aims for real estate management that can respond flexibly to changes in social structure such as urbanization and work sharing.
  6. Collaboration with Stakeholders
    SRM shall establish a good relationship with tenants, property management companies, local communities and other stakeholders involved in real estate under management and collaborate to promote ESG.
  7. Efforts for SRM's Employees
    SRM shall strive to develop employees' skills by providing specialized training, support for acquisition of qualifications and such based on its human resources strategy. In addition, SRM shall work to create a favorable working environment to allow diverse employees to work comfortably in good health.
  8. Compliance and Strengthening of Governance
    In order to protect investors and ensure SRM's proper operations, SRM shall not only abide by laws and regulations, but also strive to prevent corruption, prevent conflicts of interest, manage information properly, and value human rights and diversity.
  9. Disclosure of ESG Information and Utilization of Outside Evaluation
    SRM shall make efforts to implement appropriate and transparent disclosure of ESG-related information for its stakeholders, and consider utilization of outside evaluation and third-party certification.
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Expression of support for UN Systems Summit

Sumitomo Corporation expressed its support for the United Nations Food Systems Summit (FSS), declaring that it will contribute to global sustainable food systems through a range of food and agricultural businesses conducted by the Sumitomo Corporation Group.

The FSS, scheduled for September 2021 in New York, will be the first international forum having discussions on the sustainability of food systems as a global common agenda and setting a vision for the future. The summit is being held based on the belief of UN Secretary-General Antonio Guterres that transformation to sustainable food systems will be crucial for delivering the Sustainable Development Goals (SDGs).

United Nations Food Systems Summit 2021
  • The term “food system” refers to the constellation of activities involved in producing, processing, transporting and consuming food. According to the FSS Scientific Group, food systems embrace the entire range of actors and their interlinked value-adding activities involved in the production, aggregation, processing, distribution, consumption and disposal of food products that originate from agriculture, forestry, fisheries and food industries as well as the broader economic, societal and natural environments in which they are embedded. (Source: MAFF Website)

Sumitomo Corporation‘s statement on the FSS

The FSS-related website of MAFF, Japan (Japanese only)

The FSS-related website of United Nations

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