May 02, 2024
Sumitomo Corporation

Revision to Material Issues and Policies on Climate Change Issues

Sumitomo Corporation (Head Office: Tokyo; President and CEO: Shingo Ueno) updated material issues to achieve our Group’s sustainable growth through addressing social challenges. from the perspective of value creation. In addition, toward overcoming the climate change issues covered under the material issues, policies on climate change issues were also revised.

Material Issues

In 2017, material issues were identified to achieve sustainable growth for the Sumitomo Corporation Group and solve social issues. Subsequently, in 2020, the Group identified key social issues and set specific goals, and undertook business and corporate activities toward these goals. The material issues are now merged with the key social issues and updated through discussions held with internal and external stakeholders over the course of approximately one year. The review was conducted from the perspective of value creation, with consideration also given to the further aggravation of social issues such as climate change and the loss of biodiversity, the Group’s strengths, and expectations from stakeholders.

Material issues are medium- to long- term commitment for the Group to take one step further toward addressing key social challenges that we must undertake. The Group will achieve sustainable growth through addressing the social challenges.

<Material issues>

Please refer to Sumitomo Corporation’s website for an overview of each material issue as well as the medium- and long-term goals.

■Policies on Climate Change Issues

Climate change—which is one of the Sumitomo Corporation Group’s material issues—is a pressing issue to be undertaken globally. The key to overcoming this issue is to balance the steady promotion of decarbonization and the stable supply of energy that supports the daily lives of people around the world.

The Group aims to achieve carbon neutralization of its businesses by 2050 and sets an medium-term goal of reducing emissions by 50% or more by 2035. Besides working to reduce emissions from the Group’s businesses toward achieving these goals, the Group will further contribute to the acceleration of energy transition toward achieving carbon neutrality in society. There are various pathways toward achieving a carbon-neutral society depending on the country or region. The Group intends to contribute to the greatest extent possible and has therefore revised its policies along the following lines   as per attached .

  • Previously, a goal for the ratio of the power generation portfolio was set. However, in the gas-fired power generation business and renewable energy power generation business, the Group will pursue optimal development of power sources and stable supply of electricity toward achieving the decarbonization and energy plans of countries and regions without being confined by the ratio of power generation businesses portfolio.
  • Regarding fossil fuel upstream business, the previously stated timing for terminating thermal coal mining interest has been further clarified. As for the remaining upstream gas developments, the Group clarified its stance, considering the important role natural gas plays in energy transition toward achieving a carbon-neutral society.

The Sumitomo Corporation Group will contribute to carbon neutralization of countries and industries through collaboration with various partners, while integrally addressing social issues, such as the impact on natural capital including biodiversity, and respect for human rights of stakeholders related to its supply chain.

Corporate Communications Department, Sumitomo Corporation
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