Through governance, disclosure, and dialogue, we will steadily advance our sustainability management strategy.

Enhancing corporate value through sustainability Management

By earnestly addressing our Material Issues and leveraging our strengths to realize them through our businesses, we can achieve our vision of becoming “No. 1 in Each Field.”
Through these efforts, we promote “sustainability management” based on the belief that continuously creating value that society truly needs is the key to realizing both a sustainable society and sustainable growth for the Company.
For each Material Issue, we set medium- and long-term goals. We then set priority Material Issues for each business based on its unique characteristics, risks, and opportunities, thereby driving initiatives in a self-directed manner. On climate change, for example, we focus on expanding renewable energy investments and reducing Scope 3 emissions. As for natural capital, we are working to reduce our impact on nature and developing businesses that help reduce negative environmental impacts.
In this rapidly changing environment, advancing sustainability management requires ongoing dialogue and collaboration with external stakeholders. Through our discussion with the Sustainability Advisory Board, which includes external experts, we are steadily advancing our sustainability management strategy. This includes adding natural capital to our Material Issues and strengthening the effectiveness of our human rights due diligence.

Challenge of addressing social issues across the entire supply chain

The Group operates in a wide range of business sectors and is active across all areas of the supply chain. Accordingly, advancing sustainability management across our complex supply chains involves numerous challenges.
To promote these initiatives efficiently and effectively, we adopt a risk-based approach that prioritizes businesses that need to be addressed first. On climate, we have already addressed priority businesses such as thermal power generation and fossil fuel interests. In FY2024, we also identified priority businesses for action on human rights and natural capital. Going forward, we will verify the risk-response status of the upstream supply chains of businesses handling high-risk commodities. We will also strengthen measures to address human rights and environmental impacts on surrounding communities from mining and other development projects.
Because efforts related to climate, human rights, and nature can sometimes be a trade-off, we need to adopt a holistic approach. For example, developing renewable energy to address climate change must not come at the cost of diminishing precious natural environments. We believe that addressing social issues in a holistic manner will also strengthen our supply chain and help enhance corporate value.

Strengthening disclosure and governance

In disclosing sustainability-related information, our goals are to identify financially significant sustainability-related risks and opportunities, establish a governance system to manage them appropriately, and disclose information that is useful to our stakeholders. We are continuously strengthening these initiatives as a starting point for constructive dialogue with stakeholders and working to improve the quality and usefulness of our disclosures.
I believe that expanding such disclosures will enhance the quality of management decisions and foster the sustainable growth of corporate value. We will continue working methodically to build an effective disclosure framework.
Going forward, the Sumitomo Corporation Group will continue entrenching sustainability management to create value and achieve growth by addressing social issues, even in this era of constant change. We appreciate your continued support.