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Supply Chain Management

View Sumitomo Corporation's Sustainability : Supply Chain Management

Basic Concept

The Sumitomo Corporation Group has established the Sustainable Supply Chain Action Policy. Through the implementation of the policy, 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 this policy, in order to promote sustainable supply chain management. We share this policy with our suppliers and business partners and confirm their compliance as necessary. Also, in monitoring social and environmental risks in each business, we confirm the supply chain in accordance with Sustainable Supply Chain Action Policy, individual policies for specific commodities, as well as other laws and regulations.

Sustainable Supply Chain Action Policy

Enacted in November 2009
Revised in November 2013
Revised in July 2026

Based on the “Sumitomo Business Philosophy” and our Management Principles, the Sumitomo Corporation Group regards contributing to the sustainable development of society through sound business activities as our fundamental mission. Our Group conducts business activities in accordance with international standards regarding human rights and other matters, including the “International Bill of Human Rights,” the International Labour Organization (ILO) “Declaration on Fundamental Principles and Rights at Work,” the United Nations “Guiding Principles on Business and Human Rights,” and the “Ten Principles of the UN Global Compact.”

As a general trading company conducting diverse business operations globally and maintaining diverse supply chains, in order to build sustainable supply chains together with our business partners and suppliers, our Group seeks their endorsement, understanding, and implementation of the matters set forth below. We will fulfill our social responsibilities by working with our business partners and suppliers to engage in dialogue and consultation with stakeholders for identifying and addressing issues within the relevant supply chains.

  1. Respect for Human Rights
    Under our Human Rights Policy, our Group is committed to respecting human rights, avoiding causing or contributing to adverse human rights impacts through our own activities, and seeking not to contribute to adverse human rights impacts through our supply chains. Specifically, our Group respects fundamental labor rights, ensures reasonable working hours and sufficient rest periods, and ensures appropriate payment of a living wage. Our Group also prohibits discrimination, violence, and harassment, and does not tolerate involuntary labor, such as forced or child labor. Our Group respects freedom of association and the right to collective bargaining, and strives to provide a safe, hygienic, and healthy working environment. Our Group also takes into consideration the safety and rights to land and territories of local residents and indigenous peoples.
  2. Environmental Considerations
    Our Group recognizes environmental challenges such as climate change (including the measurement and reduction of greenhouse gas emissions), biodiversity, the efficient use of resources and energy, water resource conservation, and pollution prevention, and we are committed to reducing our environmental impact and preserving the global environment.
  3. Ensuring Quality and Safety
    Our Group ensures the quality and safety of the products and services we provide, earning the peace of mind and trust of our stakeholders.
  4. Fair Trade and Anti-Corruption
    Our Group complies with applicable laws and regulations as well as international standards, and strictly upholds fair business practices. We prevent all forms of corruption, including bribery and extortion.
  5. Ensuring Information Security
    Our Group properly manages the information we handle and strives to ensure information security and protect privacy and personal information.
  6. Coexistence with Local Communities
    As a member of the local communities where we conduct our businesses, our Group values dialogue with these communities and contributes to their sustainable development.
  7. Information Disclosure
    Our Group will regularly disclose appropriate information regarding our initiatives related to this Policy.

Furthermore, where adverse human rights, environmental, or other impacts, including conduct inconsistent with this Policy, are identified within our supply chains, we will request remediation by our business partners and suppliers through dialogue with them and in accordance with internationally recognized human rights and other relevant standards, and request that they develop and implement corrective action plans aimed at addressing such impacts as necessary. If, despite ongoing engagement, guidance, and support to the extent of our Group’s leverage, in accordance with internationally recognized human rights and other relevant standards, we determine that such impacts would not be sufficiently addressed, we will consider appropriate measures, including the temporary suspension or review of business transactions.

  • In this Policy, “Sumitomo Corporation Group” and “our Group” refer to Sumitomo Corporation on a non-consolidated basis and our consolidated subsidiaries.
    With regard to equity-method affiliates, we will endeavor to ensure that they understand and implement the objectives of this Policy to the extent of our leverage.
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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 Sustainable Supply Chain Action Policy. 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 Sustainable Supply Chain Action Policy, 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 Sustainable Supply Chain Action Policy for Supply Chain Management which committed to the sustainable procurement of palm oil.

  • Roundtable on Sustainable Palm Oil
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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, as it is not listed in the U.S. However, in order to fulfill our corporate social responsibility in our business activities, we will closely monitor relevant trends and advance initiatives such as information sharing with suppliers, taking into account international challenges related to conflict minerals as well as requests from business partners.

  • The Dodd-Frank Act defines conflict minerals as tin, tantalum, tungsten and gold
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EcoVadis Certification for Chemical Solutions Group

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, Presperse Corporation
  • Gold Medal: Summit Pharmaceuticals Europe
  • Silver Medal: Summit Cosmetics LATAM, Summit Cosmetics Corporation
  • Bronze Medal: Summit Pharmaceuticals International, SUMITOMO DEUTSCHLAND GMBH
  • Platinum is awarded to the top 1%, Gold to the top 5%, Silver to the top 15%, and Bronze to the top 35% of companies
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Measures Taken in the Chemical and Electronics Industries

Sumitomo Shoji Chemicals Co., Ltd. (hereinafter “Company”), which focuses on trading in the chemical and electronics sectors with extensive industrial involvement and numerous applications, ensures that, based on customer requests, its raw material suppliers confirm the "non-use of conflict minerals that fund armed groups" and "management of chemical substances contained in products." This is to verify that no environmental or human rights issues arise.

Additionally, the Company agrees to the green procurement systems of its customers, which aim to promote environmental conservation, and requires its raw material suppliers to also agree to these green procurement systems and comply with related environmental laws and regulations. The Company also verifies their compliance status.

The Company is a member of Sedex, a non-profit organization that provides a platform for companies to manage their supply chains ethically and sustainably, and has passed Sedex's audits related to environmental and human rights issues.

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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.

  • OEKO-TEX® Standard 100 is the world’s highest standard for safe textile products, awarded only to products that have passed strict safety tests for the presence of harmful substances.
OEKO-TEX
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 second Fairtrade Japan Awards, announced in November 2025. 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 enhanced the relationship between the origin countries and Japan by, for example, joining Golden Cup CAM - the contest of the Fairtrade coffees from Central America and Mexico as a judge. SC Foods also won the first Fairtrade Japan Awards, announced in October 2023.

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, INC. 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 ASC* certification for some of its marine products for the purpose of sustainable procurement and environmental and social considerations. In addition, SUMMIT, INC. develops products with a focus on sustainable perspective.

  • ASC: An international certification program for environmentally and socially responsible aquaculture products, administered by the Aquaculture Stewardship Council.
ASC
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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
E
  • 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.
S
  • 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
G
  • 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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Commitment to External Initiatives

RSPO: Roundtable on Sustainable Palm Oil

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.

RSPO

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.

(PEFC/31-31-1393 ・ PEFC/31-31-1559)

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 hold ISCC PLUS, an international certification for bio-based products. This allows us to trade ISCC PLUS certified products. In addition, the following group companies have also obtained ISCC PLUS certification.

  • Sumitomo Shoji Chemicals Co., Ltd.

ISCC EU: International Sustainability & Carbon Certification EU

We hold ISCC EU, an international certification for sustainable fuels compliance with Europe Union set out in Renewable Energy Directive. This allows us to trade ISCC EU certified products.

ISCC CORSIA: International Sustainability & Carbon Certification CORSIA

We hold ISCC CORSIA, an international certification for CORSIA (the Carbon Offsetting and Reduction Scheme for International Aviation) eligible fuels. This allows us to trade ISCC CORSIA certified products.

ASI: Aluminium Stewardship Initiative

We are a member of the Aluminium Stewardship Initiative (ASI), the global aluminium industry organization. As an 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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