Environmental Policy and Management Structure, Objectives and Results

Environmental Policy and Management Structure

Throughout its 400-year history, the Sumitomo Group has pursued industrial development in harmony with local communities and the natural environment. Based on this foundation, the Sumitomo Corporation Group pursues business activities in such a way as to promote environmental conservation. Recognizing that various initiatives such as creating a low-carbon society that alleviates climate change, preserving biodiversity and the global environment, using energy, water and resources sustainably, preventing pollution and controlling waste emissions are the most important and long-term concerns that all individuals and organizations must address, we have established our Environmental Policy as detailed below.

Sharing this policy, Sumitomo Corporation Group companies are committed to reducing the environmental impacts of their business activities as well as to improving the environment through their business activities, based on the ISO 14001 environment management system.

Sumitomo Corporation Group Environmental Policy

I. Basic Policy

The Sumitomo Corporation Group recognizes that environmental issues are global in scale and that they are long-range concerns affecting future generations. As a global organization, the Sumitomo Corporation Group, through sound business activities, will strive to achieve sustainable development aimed at both social and economic progress and environmental preservation.

II. Basic Guidelines

In pursuing its diversified business activities both within Japan and overseas, the Sumitomo Corporation Group shall comply with the following guidelines, and, through cooperation between its Group companies, work to achieve the aims of its environmental Basic Policy.

  1. Basic stance with regard to the environment:

    To place great importance on protecting the global environment as a good corporate citizen in accordance with the Sumitomo Corporation's Activity Guidelines.

  2. Compliance with environmental legislation:

    To strictly observe legislation related to environmental matters not only in Japan but also overseas, and to abide by any agreements made.

  3. Caring for the natural environment:

    To place great importance on preserving the environment, including the natural ecosystem and biodiversity.

  4. Response to climate change:

    To place great importance on mitigating climate change and adapting to its impact.

  5. Efficient use of resources and energy:

    To be mindful of the finite availability of resources and energy and strive to use them both efficiently and effectively.

  6. Contributing to the building of a recycling-oriented society:

    To endeavor to help build a recycling-oriented society by reducing waste and reusing and recycling resources.

  7. Promotion of businesses that contribute to environmental preservation:

    To utilize our integrated corporate strength to promote businesses and projects, which contribute to environmental preservation and reduction of the impact of society on the natural environment.

  8. Establishment of environmental management:

    To use an environmental management system to prevent environmental pollution and set environmental objectives and targets which are regularly reviewed and continuously upgraded.

  9. Disclosure of the environmental policy:

    To communicate this Environmental Policy to all people who are working for or on behalf of the Sumitomo Corporation Group, as well as disclosing it externally.

Environmental Management Structure

The Sumitomo Corporation Group has established, based on the environmental policy, the environmental management structure with the Corporate Sustainability Committee as the center of the structure. As for the ISO 14001 environmental management system (EMS), since Tokyo and Osaka offices of Sumitomo Corporation acquired the Group's first ISO 14001 certification in June 1999, the coverage of the system has been extended continuously. About 20,000 employees in domestic locations of Sumitomo Corporation and certain group companies participates in these environmental management activities. At the ISO 14001 Group Companies Conference, which consists of Sumitomo Corporation and ISO 14001 integrated certification group companies, we share the environmental activities, and report to Corporate Sustainability Committee if necessary. Depending on the importance of the subject, Corporate Sustainability Committee discusses and reports to the Management Council and the Board of Directors.

  • EMS:Environmental Management System

ISO 14001 Integrated Certification Group Companies

(As of October 2019 Sumitomo Corporation and 26 group companies)

SUMITOMO CORPORATION KYUSHU CO., LTD.
SUMITOMO CORPORATION HOKKAIDO CO., LTD.
SUMITOMO CORPORATION TOHOKU CO., LTD.
SUMISHO METALEX CORPORATION
METAL ONE SUMISHO TUBULAR PRODUCTS CO., LTD.
SUMITOMO CORPORATION GLOBAL METALS CO., LTD.
SUMISHO AERO-SYSTEMS CORPORATION
SUMITOMO MITSUI AUTO SERVICE COMPANY, LIMITED
SMA SUPPORT CO., LTD.
SPACE MOVE CORPORATION
SUMITOMO CORPORATION POWER & MOBILITY CO., LTD.
SUMITOMO SHOJI MACHINEX CO., LTD.
SUMISHO GLOBAL LOGISTICS CO., LTD.
SCSK CORPORATION
VA LINUX SYSTEMS JAPAN K.K.
SUMISHO INTERIOR INTERNATIONAL INC.
SUMISHO MONTBLANC CO., LTD.
SC FOODS CO., LTD.
CHIBA KYODO SILO CO., LTD.
SMB KENZAI CO., LTD.
S.C.BUILDING SERVICE., CO., LTD.
SUMISHO MATERIALS CORPORATION
SUMITOMO SHOJI CHEMICALS CO., LTD.
SUMITRONICS CORPORATION
SUMMIT PHARMACEUTICALS INTERNATIONAL CORPORATION
SUMMIT AGRO INTERNATIONAL LTD.

Direct Consolidated Subsidiaries with ISO 14001 Certified

■Japan (As of September 2018, 5 group companies)
SUMMIT STEEL CO., LTD.
KIRIU CORPORATION
IG KOGYO KAISHA., LTD.
SUMMIT INC.
SUMISHO AIRBAG SYSTEMS CO., LTD.

■Overseas (As of September 2018, 16 group companies)
SHANGHAI NIKKA METAL PRODUCTS CO., LTD.
WUXI SUMMIT-BAO METAL PRODUCTS CO., LTD.
TIANJIN HUA ZHU METAL PRODUCTS CO., LTD.
FOSHAN SUMMIT NIKKA MOLD AND METAL PRODUCTS CO.,LT
SUMITOMO CORPORATION ASIA & OCEANIA PTE.LTD
SUMITOMO CORPORATION THAILAND LTD.
SUMI-THAI INTERNATIONAL LTD.
SUMISHO METAL (THAILAND) CO.,LTD.
CALAMBA STEEL CENTER, INC.
SUMIPUTEH STEEL CENTRE SDN BHD
PT. SUPER STEEL KARAWANG
HANOI STEEL CENTER CO., LTD.
THANG LONG INDUSTRIAL PARK II CORPORATION
INDIA STEEL SUMMIT PRIVATE LIMITED
TOYOTA UKRAINE
MOTO-PFOHE EOOD

Setting Environmental Objectives

Sumitomo Corporation Group promotes activities that are beneficial to the environmental improvement and reduce environmental negative impact.

Further, as the whole Sumitomo Corporation Group, we follow to a policy stated in Medium-Term Management Plan 2020 that "we recognize climate change related issues are important so that we contribute to solve those issues through our business activities as well as to reduce greenhouse gas emissions."

At Sumitomo Corporation, Eco Leader identifies the environmental aspects of each department and evaluates their impacts, and identifies risks and opportunities considering relevant compliance obligations. Based on the results, EMS Promoters specify significant environmental aspects, risks and opportunities for each Business Unit and the Corporate Sustainability Department reviews them for the entire company. At the Corporate Sustainability Committee, we review the achievement of the environmental targets and decide new objectives for the following year. 

Environmental Objectives and FY2018 Environmental Results (Sumitomo Corporation)

Environmental Objectives FY2018 Environmental Achievements
Comply with environmental laws and regulations
  • Implement continuing education program on the Waste Disposal and Public Cleansing Act and other environment-related laws/regulations
  • Conduct on-site checks of waste disposal service providers and encourage the sharing of information within the Group
  • Seminars featuring outside instructors and workshops covering on-site checks at industrial waste disposal facilities (for the 12th consecutive year)
  • Enhanced education of legal compliance in the environment e-Learning content.
Pursue environmentally-sound projects
  • Expand renewable energy businesses
  • Promote businesses that help create a recycling-oriented society
  • Promote other businesses to reduce environmental burden
  • Promoted renewable energy businesses both in Japan and abroad: participated in an offshore wind power generation project in Europe, implemented the solar power project in Australia and in Minamisoma City in Fukushima Prefecture, Japan, wood biomass power plant in Sakata City in Yamagata Prefecture, and Handa City in Aichi Prefecture, Japan, Establishment of renewable energy fund, etc.
  • Promoted businesses to create a recycling-oriented society, to reduce environmental burden: verification of a large –scale power storage system utilizing reused EV batteries in Satsumasendai City in Kagoshima Prefecture, Demonstration tests of the electric bus service using regenerative power occurred from trains in Saitama city in Saitama Prefecture, etc.
Manage and reduce environmental burden
  • Measure and reduce electric power/gas consumption and waste generation at all sites in Japan
  • Measure and reduce the environmental burden/impact of business activities
  • Assess environmental impact in relevant supply chains and work to reduce such impact 
  • The reduction of electric power/gas/water consumption and waste generation at office year-on-year is expected.
  • Expanded the boundary of environmental data to direct and indirect consolidated subsidiaries.
  • Conducted environment assessments on mine development and mining operation businesses abroad and on construction and real estate businesses in Japan, as well as soil pollution surveys for construction and real estate businesses
Promote environmental education and communication related to environmental issues
  • Hold events, including awareness-raising seminars related to environmental conservation
  • Promote effective use of environmental management systems
  • Continued to hold seminars on environment-related laws/ordinances
  • Hold seminar on climate change measures
  • Conducted e-learning environmental course which was completed by 100% of our employees
  • Released ESG Communication Book. 

Environmental Data Targets and Results (Non-consolidated in Japan)

Taking account of the results of the 2℃ target set forth by the Paris Agreement, Sumitomo Corporation set the following long-term goals for electricity consumption, water consumption and waste emissions in FY2017.

Each intensity and total amount are for its head office, regional offices, branches, sub-branches in Japan.

Target
Electricity Consumption To reduce electricity consumption per square meter by an average of at least 1% annually and at least 20% until FY2035 both from base year of FY2013.
Water Consumption To reduce water consumption per employee by an average of at least 1% annually from base year of FY2010.
Waste Emissions To reduce waste emissions per employee by an average of at least 1% annually from base year of FY2010.

The targets converted from long-term goals, results of FY2018, targets of FY2019 are as follows.

Index Base year Targets of FY2018 Results of FY2018 Targets of FY2019
Electricity Consumption Consumption (MWh) 7,859 7,149 5,133 5,725
Intensity (MWh/m2) 0.1079 0.1026 0.0820 0.1016
Water Consumption Consumption (m3) 32,191 25,410 13,263 24,232
Intensity (m3/employee) 6.93 6.39 3.52 6.33
Waste Emissions Emissions (t) 508 401 182 383
Intensity (t/employee) 0.109 0.101 0.048 0.100

The figures in the table below are calculated from the electricity consumption data with appropriate CO2 emission factors* and the CO2 emissions of FY2013 (the base year) are calculated as 5,626t-CO2.

If the CO2 emissions target of FY2019 is achieved, it will be about 25% reduction compared to FY2013. If the above electricity consumption reduction target of FY2035 is achieved, the CO2 emissions will be reduced by 46% compared to FY2013.

Further, we have reduced 1,858t-CO2 emissions by FY2018, and it is 131% achievement against 1,416t-CO2, which is the reduction target of FY2019, and 72% against 2,564t-CO2, which is the reduction target of FY2035.

*CO2 emission factors: The latest value of the basic emission coefficients for the individual power companies.

Targets of FY2018 Results of FY2018 Targets of FY2019
CO2 Emissions (Scope1, Scope2) Total (t-CO2) 4,484 3,768 4,210
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