ESG Communication Book 2023
ESG Data© 2023 Sumitomo Corporation

Contents

1

Contents

Environment

Governance2

Editorial policy

24

Environmental Management

126

Corporate Governance28

Climate Change

136Group Governance

137

Internal Control

138

Compliance

141

Social and Environmental Risk Management

143

Information Security

144

Stakeholder Engagement

145

ESG Quantitative Data

Sustainability of Sumitomo Corporation Group(including Disclosure based on TCFD Recommendations)3

Our approach to Sustainability

65

Water Resources

4

Sustainability Promotion System

66

Prevention of Pollution

6

Relationship between Various Social Issues
and the Company’s Business

68

Resource Utilization

73

Biodiversity(including TNFD trial analysis)

7

Sustainability Management

Society

Feature9

Sumitomo Corporation Group’s
Key Social Issues and Goals / Progress

82

Human Rights

92

Supply Chain

154

External Recognition

97

Human Resources Management

156

Commitment to External Initiatives

120

Social Contributions Activities

158

Principles and Policies Supporting
Corporate Activities

159

Disclosure Based on IBC Stakeholder
Capitalism Metrics▌ Major Updates•

Sustainability Promotion System（Sustainability Advisory Board）•

Sumitomo Corporation Group’s Key Social Issues and Goals / Progress•

Climate Change (Including Disclosure based on TCFD Recommendations)•

Use of Internal Carbon Pricing(ICP)•

Sustainable Forest Management and Initiatives to Source Forest Products•

Biodiversity(Trial Analysis based on TNFD Beta Framework)•

Human Rights Due Diligence in Business units (Infrastructure Business Unit/Mineral Resources, Energy Chemical & Electronics Business Unit)•

Policy and Concept on sustainable procurement of palm oil© 2023 Sumitomo Corporation

p.4
p.11
p.28

p.30
p.72

p.73
p.84

p.93

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Sustainability
of ofSustainability
Sumitomo
Corporation
Sumitomo
Group
Corporation Group2023
ESG Communication Book

FeatureEnvironment

SocialGovernance

ESG
Quantitative
Data

External
Recognition

Commitment
to External
Initiatives

Principles andPolicies

IBC
Stakeholder
Capitalism
Metrics

Editorial Policy
Sumitomo Corporation Group provides both financial and non-financial corporate information by utilizing various information disclosure tools. Of these tools, the ESG
Communication Book summarizes detailed information about our activities related to sustainability from the perspective of ESG (Environment, Society, and Governance). The below
diagram is an overview that shows the information listed in each disclosure tool and its position. Please also refer to the tools other than this book, such as the Integrated Report.

▌ Sumitomo Corporation Group’s Information Disclosure System
Non-financial Information

Integrated Report
ESG Communication Book

Company
Brochure

Concise/
Selected
Information

Newsletter toShareholders(SC NEWS)

For more information

ESG
Stories

Integrated Report

Business Report /Consolidated
Financial
Statements /Financial Statements(Included in Notice ofConvocation)

Sumitomo
Corporation’s
WebsiteESG
Communication
Book

Of non-financial information, the ESG Communication Book summarizes detailed
information about our activities related to sustainability from the perspective ofenvironmental, social, and governance (ESG). We provide the latest related
information by disclosing it on our corporate website and updating it as necessary.
Since 2022, we have been publishing two reports, “ESG Stories,” which is more
focused on a narrative reporting of value creation, and “ESG Data,” which provides
comprehensive ESG information. The information necessary for stakeholders isdisclosed in an easy-to-understand manner.

Business Report /Consolidated
Financial Statements /Financial Statements(Included in Notice ofConvocation)

The Business Report conveys important matters related to business results andstatus of each fiscal year. The Consolidated Financial Statements disclose ourcorporate group’s consolidated financial position and profit/loss. The Financial
Statements disclose our non-consolidated financial position and profit/loss. (All three
are in accordance with the Japanese Companies Act.)For more information

Web Site

Sustainability
https://www.sumitomocorp.com/en/jp/sustainability

ESG Data

Corporate
Governance
ReportAnnualFinancial Report
Quarterly
Earnings
ReportAs a communication tool for all stakeholders, this is an annual report that integrates
our financial and non-financial information. This Integrated Report helps stakeholders
understand the overview of our value creation and the enhancement of corporate
value in the short, medium, and long term as well as corporate strategy and theoverall progress of our business.

Comprehensive/
Detailed
Information

Financial Information

Reporting boundary of this book
Sumitomo Corporation and group companies
Reporting Period of this bookBusiness activities mainly in FY2022 (April 2022-March
2023), including some policies and activities before March2022 and after April 2023.
Date of Issue
September 29, 2023

 Conformed Guidelines〇 Final Report: Recommendations of the Task Force on Climate-related
Financial Disclosures〇 World Economic Forum: Stakeholder Capitalism Metrics

 Referenced Guidelines○ Ministry of Economy, Trade and Industry:
Guidance for Collaborative Value Creation○ ISO26000: Guidance on social responsibility○ Ministry of the Environment: Environmental Accounting Guidelines 2005

Contact

Sumitomo Corporation
Corporate Sustainability Department
TEL: 03-6285-5000
WEB: Sustainability Contact Form
https://www.sumitomocorp.com/en/jp/info/sustainability○ METI / MOE: Calculation and Reporting Manual for Greenhouse Gas Emissions© 2023 Sumitomo Corporation

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2023
ESG Communication Book

Sustainability
of ofSustainability
Sumitomo
Corporation
Sumitomo
Group
Corporation GroupFeatureEnvironment

SocialGovernance

ESG
Quantitative
Data

External
Recognition

Commitment
to External
Initiatives

Principles andPolicies

IBC
Stakeholder
Capitalism
Metrics

Our Approach to Sustainability
As set forth in the Corporate Message of “Enriching lives and the world,” the aim of Sumitomo Corporation is to further enrich the world, society, and people’s lives. In line with our credo that
“Benefit for self and others, private and public interests are one and the same,” passed down through the generations since the company was founded, we strategically allocate management
resources in anticipation of the long-term shifting business landscape impacted by these social issues, and we leverage our strengths to continue creating the value that society truly needs. We
promote sustainability management in the belief that each of these actions will create a sustainable society and achieve sustainable growth for Sumitomo Corporation.

▌ What Actions We Need to Take Now▌ History of Sumitomo Corporation Group
Sumitomo Corporation Group has grown into an integrated trading company over the past
100 years since it was originally founded as the Osaka North Harbor Company Limited in
1919. The history of Sumitomo, which formed the basis of Sumitomo's Business Philosophy,
can be traced back to some 430 years ago when its business focused on copper refining
which later advanced to copper mining.
All employees of Sumitomo Corporation learn the history of the Besshi Copper Mines.
Through its modern business management, the Besshi Copper Mines contributed in leadingindustrial development in Japan, however, there were negative impacts on local
communities including deforestation of nearby forests and damage to agricultural crops from
sulfur dioxide emitted by smelters. Management at that time took measures including
reforestation of the Besshi Copper Mines and relocation of the smelting plant to an
uninhabited island off the coast.

Today, we face many social challenges that threaten the sustainability of society including
climate change, loss of biodiversity, and human rights issues.
Global goals and guidelines are adopted such as the Paris Agreement, the UN’s Social
Development Goals (SDGs), and the Business and Human Rights Guiding Principles, andvarious players including corporations are making efforts to achieve these goals.
In 2017, based on Sumitomo’s Business Philosophy and Sumitomo Corporation Group’s
Corporate Mission Statement, the Group identified the six material issues for achieving
sustainable growth with society. Of the six material issues, four were identified as how eachof our business contributes to society and two were added as our important management
topics. We have been placing the six material issues at the core of our management toconstantly be aware that the business strategies and each business align with the material
issues and making sure that Sumitomo Corporation Group is contributing to society.

“Benefit for self and others, private and public interests are one and the same”, which is one

Sumitomo Corporation Group's Material Issuesof the credos of Sumitomo’s Business Philosophy, and the actions taken by ourpredecessors to prioritize the sustainability of natural environment and the local community
over short-term profit, are deeply rooted in heart of every employee at Sumitomo
Corporation. We are confident that our business serves the public interest.
Sumitomo’s Business Philosophy

Today, we have 80,000 employees working at almost 900 group companies in 78 countries

However, social issues such as the climate change have become increasingly serious and amajor threat to the sustainability of society. We believe that we now need to make an evenstronger commitment to further identifying the issues that we should address and the roles
that we should take for the development of a sustainable society, and the Sumitomo
Corporation Group has commenced initiatives to enhance its sustainability management.
As part of these initiatives, we have identified six key social issues that we need to address.

and regions and we do our business by engaging with multiple stakeholders including

We have also set long-term and medium-term goals for each of the issue, and we arecustomers, local communities, business partners and employees. Our business as well as

monitoring their progress.

our relationship with the stakeholders have expanded to a global scale and we believe that

Sustainability Management

our mission is to protect the planet and pursuing development for the world and better lives
for our stakeholders.
Corporate Mission Statement© 2023 Sumitomo Corporation⇒For more information on initiatives toward the six key social issues,
please see the ESG Communication Book 2023(ESG Stories).
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Sumitomo
Group
Corporation Group2023
ESG Communication Book

FeatureEnvironment

SocialGovernance

ESG
Quantitative
Data

External
Recognition

Commitment
to External
Initiatives

Principles andPolicies

IBC
Stakeholder
Capitalism
Metrics

Sustainability Promotion System▌ Organization for Promoting Sustainability
Sumitomo Corporation has established the Corporate
Sustainability Department, which is responsible for theplanning of measures to promote sustainability andensuring

their

implementation

throughout

theorganization.
Meanwhile, the department coordinates with generalmanagers,

who

are

responsibleforpromotingsustainability within each business unit, and with thesustainability promoting staff of each business unit’s
Planning & Coordination Department. The department
also works with the sustainability promoting staff ofrelevant corporate departments and overseas regionalorganizations to ensure that sustainability promotion
measures are fully implemented groupwide and also thatthedifferent

business

units/initiative

andregionalorganizations pursue measures tailored to the specificsof their business or region.
The Corporate Sustainability Committee acts as anadvisory body to the Management Council and discusses
important policies, measures, and initiatives relating to
the promotion of sustainability. Important initiatives
relating to sustainability promotion are referred by thecommittee to the Management Council and the Board of
Directors

forfurther

discussion.

Some

importantinitiatives are subject to the decisions of the Management
Council and the supervision of the Board of Directors. In
addition, we have established the Sustainability Advisory
Board, which consists external experts, to provide advice
andrecommendations

onoverallsustainability

management.

© 2023 Sumitomo Corporation

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ESG Communication Book

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Sumitomo
Corporation
Sumitomo
Group
Corporation GroupFeatureEnvironment

SocialGovernance

ESG
Quantitative
Data

External
Recognition

Commitment
to External
Initiatives

Principles andPolicies

IBC
Stakeholder
Capitalism
Metrics

Sustainability Promotion System▌ Corporate Sustainability Committee▌ Sustainability Advisory Board

Main topics discussed and reported in FY2022

Agenda of the 1st Meeting in 2023

• Monitoring of Mid-term Sustainability Goals• Discussion on the next medium-term management plan

• Operation of the Corporate Sustainability Committee• Measures required for the six key social issues• Establishment of the Advisory Board• Structure and evaluation mechanism• Disclosure based on TCFD Recommendation• Utilization of Internal Carbon Pricing

External advisors (March 2023-February 2024)• GX League

Sadayosi Tobai, Chief Executive Officer, WWF Japan• Status of Social and Environmental Risk Management

Hidemi Tomita, Managing Director, LRQA Sustainability K.K.

• Social Contribution Activities

Takashi Nawa, Professor, Kyoto University of Advanced Science and• Environmental Management Activities• Initiatives related to Biodiversity

Visiting Professor, Hitotsubashi University Graduate School​
Junko Watanabe, Attorney-at-Law, Nishimura & Asahi• Initiatives for Enhancing Disclosure of Non-financial Information• Results of ESG Ratings© 2023 Sumitomo Corporation

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ESG Communication Book

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Sumitomo
Corporation
Sumitomo
Group
Corporation GroupFeatureEnvironment

SocialGovernance

ESG
Quantitative
Data

External
Recognition

Commitment
to External
Initiatives

Principles andPolicies

IBC
Stakeholder
Capitalism
Metrics

Relationship between Various Social Issues and the Company’s Business
At present, international organizations, national governments, local governments, private enterprises, and other groups and individuals throughout the world are cooperating toachieve common goals for sustainable development: The Sustainable Development Goals (SDGs). The SDGs are becoming the common language for people who are
addressing many social issues to achieve sustainable societies. Our Group has risks and opportunities for various social issues in our business activities covering different
countries and industries, and aims to contribute to the achievement of the SDGs through addressing material issues and to realize a sustainable society.
Major Risks(enhancement of competitiveness)

Major Opportunities(expansion of earning opportunities)

Climate Change

Decreased demand for coal fuel due to GHG emissions
regulations, etc.

Promotion of renewable energy business and environmentallyconscious business, etc.

Water Resources

Continuity risks for business involving production processes inwater shortage areas, etc.

Promotion of water supply and sewerage/freshwater generation
business to contribute to addressing water issues around the world,
etc.

Biodiversity

Impact of shortage of raw materials due to destruction ofnatural ecosystems, reputation loss due to manifestation ofadverse impacts, etc.

Creation and development of business opportunities by maintaining
and protecting ecosystems, improvement of employee motivation,
etc.

Prevention of Pollution

Reputation loss and decreased trust due to the occurrence ofenvironmental problems, etc.

Development and stability of business through harmonious
coexistence with the global environment, etc.

Resource Utilization

Business continuity risk due to the loss of the public value offorests, etc.

Expansion of forest management business by securing and using
sustainable forest resources, etc.

Human Rights

Hollowing out of human resources, reputation loss anddecreased trust as a result of human rights violation, etc.

Development and stability of local communities and businessthrough harmonious coexistence with local residents, etc.

Work Health and
Safety/Health andProductivity
Management

Decreased labor productivity, hollowing out of humanresources, and business continuity risk due to inappropriate
risk management, etc.

Improvement of labor productivity and employee motivation by
giving due consideration to health, etc.

Human Resources
Management

Hollowing out of talented human resources, decreased laborproductivity, decreased motivation of employees, and business
continuity risk due to lack of appropriate measures andinappropriate working environment, etc.

Human resources retention, enhanced labor productivity, increasein employee motivation, and opportunities to enter new businessareas through providing appropriate human resource development
programs and realizing a fulfilling working environment, etc.

Supply Chain

Business continuity risk and reputation loss as a result of theoccurrence of problems related to the environment, humanresources and labor practices in supply chains, etc.

Development and stability of business by resilient value chains, etc.

Industrial/ Technological Deterioration of existing business and hollowing out of human
Innovation
resources as a result of the shift to ICT, the disappearance ofborders for all industries, and complexity, etc.
Health Care

Local infrastructure/
Community Planning

Material Issues

Enhancement of existing business and creation of new businessmodels through the shift to ICT, etc.

Medical malpractice-related risks, etc.

Improvement of access to better medical care, enhancement ofefforts to respond to increased demand for drugs, etc.

Business continuity risks as a result of the occurrence ofproblems related to the environment, human resources andlabor practices at sites of urban development andinfrastructure construction, etc.

Promotion of urban development and infrastructure projects mainlyin emerging countries, etc.

© 2023 Sumitomo Corporation

SDGs

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Corporation GroupFeatureEnvironment

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ESG
Quantitative
Data

External
Recognition

Commitment
to External
Initiatives

Principles andPolicies

IBC
Stakeholder
Capitalism
Metrics

Sustainability Management▌ Our Sustainability Management
In addition to clear commitment to the role we play in achieving a sustainable

Pursue sustainable growth with societysociety, it is necessary that we focus on the optimal status of companies andtheir business that will be needed in a sustainable society, such as carbon

Sustainable society

neutrality, circular economy and zero violation of human rights. We need torecognize the paths to achieve them and the challenges to be overcome, andconsider the strategies and allocation of management resources that weshould implement from a long-term perspective.
We believe that capturing and pursuing the ideal state of society will bring

Sustainable growthmore business opportunities. The Sumitomo Corporation Group's sustainability
management is about perfectly aligning the vision of a sustainable society with

Commitments to solve
social issues

the Group's value creation and sustainable growth over the long-term.

Monitoring based on mediumto long-term goals▌ Positioning in the Medium-Term Management Plan SHIFT 2023

Monitoring long-termbusiness outlook

Within the Medium-Term Management Plan “SHIFT 2023” that we formulated

Awareness of the long-term
nature of social issues

in May 2021, we have identified three “SHIFTs”: Business Portfolio SHIFT,
Framework SHIFT, and Management Base SHIFT. In particular, we consider“enhancement of sustainability management” along with DX importantelements to be incorporated in promoting Business Portfolio SHIFT to one thatis both highly profitable and resilient to changes in the business environment
while firmly grasping the two major social trends of digitization and the demand
for sustainability.

© 2023 Sumitomo Corporation

Value creation

Strategic allocation ofmanagement resources
Portfolio based on long-termbusiness outlook

Sumitomo Corporation Group’s value creation model: Financial
capital, Human capital, Intellectual capital, Organizational/Group capital,
Global network capital, Business relation capital, and Brand capital“Enriching lives and the world”
Sumitomo’s Business Philosophy and
Sumitomo Corporation Group’s Corporate Mission Statement

Medium-Term Management Plan SHIFT 2023

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Corporation
Sumitomo
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Corporation GroupFeatureEnvironment

SocialGovernance

ESG
Quantitative
Data

External
Recognition

Commitment
to External
Initiatives

Principles andPolicies

IBC
Stakeholder
Capitalism
Metrics

Sustainability Management▌ What the Group Will Bring about for the Development of Sustainable Society
Sumitomo Corporation has identified “Mitigation of climate change,” “Circular economy,” “Respect for human rights,” “Development of local society and economy,” “Improvement of living
standard,” and “Quality education” as the six key social issues it needs to address, and it has set long-term goals and medium-term goals for each issue.
As the world works toward achieving sustainable
society, Sumitomo Corporation Group will takeadvantage of its human resources, businessexpertise, global networks, business relationships,
which are its strengths and source of value creation,and demonstrate its role in society. In this way,these issues and related goals will become aguideline for the Group’s entire business activities
going forward.
The

six

socialissueshave

twothemes:sustainability of the society and development andevolution of the society. The sustainability of society
is a globally shared goal as well as a major premiseof the Group’s business. The solutions for pursuing
the sustainability of society will be generated fromfurther social and economic development andtherefore, we believe that these two themes aremutually complementary. Also, we will pursue toachieve these goals through business activities,
however,

wecontributetoprovidingqualityeducation through our philanthropy as well as
human resources development initiatives.

© 2023 Sumitomo Corporation

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Group

FeatureFeatureEnvironment

SocialGovernance

ESG
Quantitative
Data

External
Recognition

Commitment
to External
Initiatives

Principles andPolicies

IBC
Stakeholder
Capitalism
Metrics

Sumitomo Corporation Group’s Key Social Issues and Goals / Progress▌ Setting Long-term and Medium-term Goals to Address Key Social Issues
Key social issues
Mitigation ofclimate change

Long-term goals Aim for carbon neutrality by
2050 and challenge torealize sustainable energy
cycle

Medium-term goals
 Reduce the Group’s CO2 emissions 50% or more by 2035 (compared to 2019)–––

Reduce CO2 emissions of the power generation business by 40% or more by 2035 (of which reduce 60% or more for coal-fired power
generation business); power generation portfolio in 2035 to comprise 20% coal-fired, 50% gas-fired and 30% renewables (*1) in terms of net
ownership generation capacity.
Reduce indirect CO2 emissions (*2) associated with the fossil fuel upstream business by 90% or more by 2035.
Reduce CO2 emissions in all other businesses (*3).

 Establish businesses that will form the foundation for a sustainable energy cycle in society–––

Sustainability of society

CirculareconomyRespect forhuman rights

Develop hydrogen and other forms of carbon-free energy, increase supply of renewable energy (5GW or more by 2030)(*4), and expand new
power and energy services.
Expand businesses encouraging electrification, fuel conversion, improved energy and coal efficiency, and energy conservation.
Capture, store and utilize CO2 via carbon recycling, forestry business, CCS, and emissions credit trading, etc.

 Shift to recyclable, efficienttechnologies and products

 Use renewable and recyclable raw materials, collect waste, and promote improved efficiency of product usage

 Sustainable use of natural
resources Reinforce the sustainable procurement system for major natural resources used by the Group Respect human rights
through all of ourbusinesses and supply
chains Promote and ensure respect for human rights in accordance with the United Nations Guiding Principles on Business andHuman Rights and Sumitomo Corporation Group’s Human Rights Policy

–
–

–

–

–

Expand use of raw materials derived from recycled or renewable resources.
Improve efficiency of product usage and expand businesses that promote longer product life (sharing, sales of used items, leasing, rentals, etc.) .

Identify major natural resource-related commodities requiring sustainable procurement, establish procurement policy, promote certification, andstrengthen voluntary auditing system.

By 2023, achieve 100% participation rate in human rights education based on the Guiding Principles, and 100% implementation rate in regionalorganizations and subsidiaries.
Strengthen risk analysis in human rights due diligence to accurately assess risks in all businesses, including the supply chain, and implement risk
mitigation measures by 2025. Establish a more effective grievance mechanism(*5) based on assessment results.

 Ensure a safe workplace environment–

Strengthen efforts to achieve zero accidents at major business workplaces, focusing on manufacturing, processing, and projects involving largescale construction.

 Achieve a diverse organization grounded in mutual respect––

Provide a safe working environment that is free from discrimination and harassment.
Promote human resource management that enables individuals to demonstrate their abilities regardless of nationality, age, gender, sexual
orientation, gender identity, or any other attributes or values.

*1 As of 2020：coal 50%, gas 30%, renewables 20% (*2) Indirect CO2 emissions generated by others with the use of fossil fuel *3 Contribute to CO2 reduction by setting targets for individual businesses*4 As of 2020：1.5GW (1GW = 1 billion W) *5 A process that employees, local residents or other stakeholders can use to lodge complaints regarding human rights violations and other issues related to enterprise’sbusiness activities including its supply chain, for resolving such issues© 2023 Sumitomo Corporation

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Group

FeatureFeatureEnvironment

SocialGovernance

ESG
Quantitative
Data

External
Recognition

Commitment
to External
Initiatives

Principles andPolicies

IBC
Stakeholder
Capitalism
Metrics

Sumitomo Corporation Group’s Key Social Issues and Goals / Progress▌ Setting Long-term and Medium-term Goals to Address Key Social Issues
Key social issues

Long-term goals

Medium-term goals

Development and evolution of society Contribute to developmentof local industries andhuman resources Develop local industries, create jobs, and develop human resources through the Group’s global business operations

 Develop industrial andsocial infrastructure Establish industrial and social infrastructure that contributes to the sustainable development of society

Improvement ofliving standard Provide advanced lifestylerelated services

 Deliver advanced lifestyle services that help to solve social issues such as urbanization and aging populations

Qualityeducation

 Contribute to quality
education

 Provide quality and equal learning opportunities through 100SEED(*) activities

Development oflocal society
and economy

–
–
–

–

–
–
–

Promote sustainable, highly productive and value-added industries, and coexist with local communities through business.
Create employment and develop management and highly skilled human resources at the Group's business sites.

Promote infrastructure that enables access to high-quality energy, water, transportation, logistics, communications, and financial services, as wellas businesses that enhance urban functions.

Provide more advanced services and new functions that improve the standard of living, such as mobility, media and telecommunications,healthcare services, and smart city development, based on new technologies and concepts.

Quantitatively expand the scope of learning opportunities.
100% satisfaction of beneficiaries.
Continue to have at least 5% of all employees participate annually (scope is Sumitomo Corporation, regional organizations and Group
companies).

(*) Social contribution activity program with employee participation at Sumitomo Corporation Group▌ Identification process of key social issues© 2023 Sumitomo Corporation

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FeatureFeatureEnvironment

SocialESG
Quantitative
Data

Governance

External
Recognition

Commitment
to External
Initiatives

Principles andPolicies

IBC
Stakeholder
Capitalism
Metrics

Sumitomo Corporation Group’s Key Social Issues and Goals / Progress
Each Strategic Business Unit (SBU) defines specific goals and action plans for the medium- and long-term goals for each issue and implements initiatives to achieve them. The Corporate
Sustainability Committee, an advisory body to the Management Council, monitors these initiatives and their progress, and reports to the Management Council and the Board of Directors. Pleasesee below for the main examples of initiatives for each key social issue.

Mitigation of Climate Change - Representative Initiatives

Long-term goals: Aim for carbon neutrality by 2050 and challenge to realize sustainable energy cycle
Medium-term goals: Reduce the Group's CO2 emissions 50% or more by 2035 (compared to 2019)
Business unit Field

Goals

Progress● Reduce CO2 emissions of the power generation business by 40% or more by 2035 (of which reduce 60% or more for coal-fired power generation business); power generation portfolio in 2035 to comprise 20% coal-fired, 50% gas-firedand 30% renewables in terms of net ownership generation capacity.
Infrastructure

Generation

Reduce CO2 emissions of the power generation business by 40% or more by 2035 (of which
reduce 60% or more for coal-fired power generation business) (compared to 2019)

Infrastructure

Generation

Power generation portfolio in 2035 to comprise 20% coal-fired, 50% gas-fired and 30%
renewables in terms of net ownership generation capacity•

CO2 emissions of the power generation business increased by 1.2% (compared to 2019)•

Power generation portfolio at end of FY2022 comprised 52% coal-fired, 30% gas-fired and 18%
renewables in terms of net ownership generation capacity•

Reduced indirect CO2 emissions associated with the fossil fuel upstream business by 41.8% (compared
to 2019)

Measure CO2 emissions in the supply chain, improve measurement accuracy, visualize
emissions, verify methods for reducing emissions, and run proofs of concept•

Completed calculations for visualizing Sumitomo Corporation Global Metals Group CO2 emissions(Scope 1, 2 and part of 3) and obtained third-party certification (March 2023)

Aim to go carbon neutral at the next-generation distribution center in West Texas, UnitedStates•In addition to shifting to solar energy for own power consumption, we started to adopt EV forklifts.
Currently installing railroad tracks to the yard in order to shift from truck to rail transportation, which
reduces CO2 emissions● Reduce indirect CO2 emissions associated with the fossil fuel upstream business by 90% or more by 2035.
MineralResources,
Energy,Chemical &Electronics

Upstream offossil fuels

Reduce indirect CO2 emissions associated with the fossil fuel upstream business by 90% ormore by 2035 (compared to 2019)● Reduce CO2 emissions in all other businesses.
Metal
Products

Steelproducts

Metal
Products

Tubularproducts

Transportation
Automotive& Construction
parts
Systems

Construction
Transportation& mining& Construction
systems
Systemssales

Reduce CO2 emissions at KIRIU CORPORATION by 30% by FY2024 (compared to FY2019) ••Reduce direct/indirect CO2 emissions from own operations (Scope 1/2), reduce CO2
emissions from customer operations (Scope 3), and promote sales of electric machinery andautomated machinery••

The newest casting plant with electric furnaces has been completed and started its operation on April
2023. It will be operated in parallel with the old existing casting line in FY2023, and castingproduction will be integrated into the new upgraded plant in FY2024.
The roadmap for Carbon Neutrality will be completed by May 2023, and the activity for 30% of CO2
emissions reduction (compared to 2019) by 2030 will be kicked off.
Continuing efforts to refine measurement of CO2 emissions
Continuing dialogue with Group companies, and implementing initiatives, to contribute to Scope 3
emission reductions and sustainability. European and North American Group companies are delivering
electric and automated machines to mining customers. The number of deliveries of these machines
has been increasing.

Please see here for more details on KIRIU.
© 2023 Sumitomo Corporation

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FeatureFeatureEnvironment

SocialGovernance

ESG
Quantitative
Data

External
Recognition

Commitment
to External
Initiatives

Principles andPolicies

IBC
Stakeholder
Capitalism
Metrics

Sumitomo Corporation Group’s Key Social Issues and Goals / Progress
Mitigation of Climate Change - Representative Initiatives
Business unit

Field

Infrastructure

Logistics

Living Related &Real Estate

RetailLiving Related &Real Estate

Fresh
Produce

Living Related &Real EstateRealestateGoals

Progress
Continued to calculate and visualize CO2 emissions for domestic and international transportation handled by
SGL (acquired assurance from an external organization).
• Continued to supporting sales and the operating companies of the Group.(Supported 15 companies)

At Sumisho Global Logistics Co., Ltd., visualize the transportation part of CO2 emissions(categories 4 and 9 of GHG Protocol Scope 3) indirectly emitted by the company andoperating companies•

Reduce energy consumption and CO2 emissions at SUMMIT,INC stores•

Replacement with energy-efficient refrigeration and freezing equipment at 10 stores

Reduce Fyffes plc GHG emissions to achieve the Science-Based Target in line with the 1.5˚C •scenario, representing a 25% reduction for scope 1 and 2 in CO2 eq./kg of fruit harvested by
2025, and a 10% reduction for scope 3 in CO2 eq./kg of fruit harvested and distributed by
Fyffes and its suppliers, from a 2020 base year.

Scope 1 and 2 GHG emissions has been reduced by 14.1% per kg of fruit and reduced Scope3 emissions by
9.4% per kg of fruit.

Aim to obtain CASBEE evaluation and rating (a type of green building certification) at logistics •facilities and office buildings owned and developed by Sumitomo Corporation•

Obtained new assessments for eight office buildings owned by Sumitomo Corporation (grades: nine S andthree A)
Obtained Rank A for one new logistics facility (out of one project).

•

Obtained GRESB 5 Stars for SOSiLA Logistics REIT, Inc.

•

Commercialized one project that meets the "ZEH-M Oriented" standard•••

Achieved 21% reduction of greenhouse gas (Scope 1+2) in accordance with SBT certification target.
Purchased FIT non-fossil certificates (51,600,000 kwh, equivalent to 32% of green power
Continue consideration of renewable energy utilization.

At the fund and REIT managed by our group, obtain GRESB, an ESG assessment specific to
Living Related & Real
長期目標：2050年の事業活動のカーボンニュートラル化と、持続可能なエネルギーサイクル実現への挑戦• GRESB 4 Stars for SC Realty Private REIT, Inc.
the real estate sector
Real Estate

estate

中期目標：社会の持続可能なエネルギーサイクルの基盤となる事業の構築
Living Related & Real
Develop projects that meet the "ZEH-M Oriented" standard (reduce primary energy
Real Estate

estateconsumption of entire condominium, including common areas, by at least 20%)

Reduce electricity consumption and CO2 emissions at SCSK Corporation data centers, etc.
Media & Digital

IT●Develop hydrogen and other forms of carbon-free energy, increase supply of renewable energy (3GW or more by 2030)(*4), and expand new power and energy services.
Infrastructure

Renewable Increase supply of renewable energy (3GW or more by 2030)
energyInfrastructure

Thermalpower
generation

Promote a business model utilizing carbon offset technologies (CCUS*, hydrogen, etc.) toachieve carbon neutrality by 2050•

Renewable energy: 1.8GW (as of end of FY2022)••

Support for host countries to shift power sources to renewable energy, etc.
Considering how to decarbonize and low-carbonize existing coal-fired power generation businesses such as
through new technologies and new fuels●Expand businesses encouraging electrification, fuel conversion, improved energy and coal efficiency, and energy conservation.
•

Metal Products

Steelproducts

Participate in trading activities and related businesses for direct reduced iron and electric
furnace materials that contribute to carbon neutral of the steel supply chain

Metal Products

Oil & gas
drilling

Provide services that contribute to the reduction of direct CO2 emissions in oil and gas drilling •operations

Metal Products

Tubularproducts

Increase the supply of tubular products for projects related to hydrogen, CCS/CCUS*,
and energy transition•

Continuing discussions with each supplier about supplying steel products with lower CO2 emission.
By expanding Sekal's services, improve efficiency of drilling operations in oil and gas well development, which
contribute to reduce construction period and CO2 emissions.
Expanded sales of tubular products for projects related to CCS/CCUS* and geothermal energy* Carbon Capture, Utilization and Storage: Technologies for sequestration and effective utilization of high-concentration CO2 emitted from industrial activities, and direct air capture technologies for capturing CO2 directly from the atmosphere© 2023 Sumitomo Corporation

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Sustainability of
Sumitomo Corporation
Group

FeatureFeatureEnvironment

SocialESG
Quantitative
Data

Governance

External
Recognition

Commitment
to External
Initiatives

Principles andPolicies

IBC
Stakeholder
Capitalism
Metrics

Sumitomo Corporation Group’s Key Social Issues and Goals / Progress
Mitigation of Climate Change - Representative Initiatives
Business unit

Field

Goals

Progress

Transportation & Mobility
Construction
Systems

Promote the widespread use of EVs/PHVs/FCVs and the development of EV infrastructure •Transportation & Leasing
Construction
Systems

Promote sustainability-related businesses in SMFL (cumulative value of contracts fromFY2020 to FY2029: 1 trillion yen)Transportation & Ship
Construction
Systems•
At Oshima Shipbuilding Co., Ltd., continue selling new ships with 30% reduction in CO2emissions (compared to 2008). Continue developing new ships with 40% reduction in CO2emissionsContinue sales of low emisson newbuilding ships (ships with 30% reduction in CO2 emissions i.e. LNG
fueled ships, etc.) built by Oshima Shipbuilding. In December 2022, Oshima Shipbuilding obtained an
approval in principle from a ship classification society for the ammonia fueled ship.

Transportation & Ship
Construction
Systems

Contribute to the reduction of CO2 emissions from both coastal and ocean-going ships bypromoting Corvus Energy marine batteries•Continued sales and maintainance service for marine battery systems towards the Japanese market
through Sumisho Corvus Energy Co., Ltd., a joint venture with energy storage system provider, Corvus
Energy.

Transportation & Commercial
aviation
Construction
Systems

Build and expand next-generation air mobility services utilizing electric vertical take-off and ••landing (eVTOL) aircraft and other methods

Invested in Volocopter GmbH, a manufacturer of eVTOLs, to build new sustainable social infrastructure.
Conducted various proof-of-concept trials to develop a drone- and EV van-based logistics network in
Katsuura City, Chiba Prefecture, and promote carbon neutrality in the region.

Transportation & Commercial
aviation
Construction
Systems

In the aircraft leasing and engine leasing portfolio, increase the portion of more fuel-efficient •and more environment-friendly aircraft and engines (target: 70% for aircraft and 50% forengines, of the total portfolio, respectively)

Improvement to approximately 73% for new aircraft (compared to 65% in the previous year) andapproximately 63% for new engines (compared to 50% in the previous year)

Transportation & Mobility hub
Construction
Systems

Install 1,000 EV chargers at parking spaces in Nordic Countries by the end of FY2024 as a •way of supporting the expanded use of EVs through the deployment of EV chargers atparking spaces.

The number of EV chargers installed by the end of FY2022 was as planned

Transportation & Fleet
management
Construction
Systems

Build up an EV life cycle management model in which EV is owned over the long term, from •use in a vehicle to use as a reused battery, utilizing them for both mobility and energy

DriveElectric, an EV leasing and fleet management company based in the UK, is planning to introduce asmart EV charging management service in FY2023, as well as a dashboard of energy and carbon
consumption for EV charging.

Transportation & Aerospace
Defense &Construction
Technology
Systems
SBU

Efforts for hydrogen-fueled aircraft businesses, realizing carbon neutral© 2023 Sumitomo Corporation

•
•
•

•

Started the sales of retrofitted EV buses to Nishitetsu (40% fewer CO2 emissions per bus). Also plan toincrease the sales to Nishitetsu, then expand to other bus operator in Japan in the next phase.
Delivered 101 EV taxis and completed installation of 67 standard chargers to Daiichi Koutsu.
Completed a trial of an EV car sharing service for corporate clients, and now continuing to investigate
introduction of the service. Working with local governments to investigate secondary market use of EVs as
official government vehicles.
Cumulative value of contracts reached approximately 330 billion yen in FY2022. Announced in June 2023
that the 1 trillion yen target for cumulative value of contracts has been brought forward to FY2025, and thatthe target for FY2029 has been lifted to two trillion yen.

Sumitomo Precision Products CO.,LTD. continued to develop technologies for next-generation (hydrogenpowered, electric) aircrafts.

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Sustainability of
Sumitomo Corporation
Group

FeatureFeatureEnvironment

SocialESG
Quantitative
Data

Governance

External
Recognition

Commitment
to External
Initiatives

Principles andPolicies

IBC
Stakeholder
Capitalism
Metrics

Sumitomo Corporation Group’s Key Social Issues and Goals / Progress
Mitigation of Climate Change - Representative Initiatives
Business unit

Field

Goals

Transportation &Construction
Systems

Aerospace
Defense &Technology SBU

Contribute to the reduction of CO2 emissions by achieving lightweight aircraft using
metal 3D printing technologies

Transportation &Construction
Systems

Beyond Mobility

Reduce loaded aircraft weights and contribute to reduced fuel costs and CO2
emissions by providing a clothes sharing service, using clothes destined for disposal,
to inbound travelers and business travelers

Transportation &Construction
Systems

Fleet
management

Promote greater use of EVs for commuting and development of EV charging
infrastructure in workplaces

MineralResources,
Energy, Chemical& Electronics

Power generation Promote the commercialization of blue carbon, and the development of blue carbonfuelbased blue economy businesses

EII

Green energy

Progress••

Invested in Sintavia, a US-based company with strengths in metal 3D printing technologies
Sumitomo Precision Products Co., Ltd, develops products with outstanding environmental performance byusing 3D metal printing technologies.

•

Established a team and operational structure in preparation for commencing a service trial with a major
airline.

•Established a new company in April 2023 to focus on commuter EVs•

We have conducted a Proof of Concept for the Blue Carbon Project in Hirono Town, Iwate Prefecture. With
the cooperation of the Fisheries Associations in Hirono Town, we have measured the seaweed bed area
and applied to acquire J Blue Credit®. We are currently marketing the granted credits. We will keep trying
to expand Blue Carbon Projects, and to realize new Blue Economy Projects through internal collaborations.

Build a combined clean energy services model that leverages our integrated corporate •strength,
creating new demand and synergies with mobility, DX, smart infrastructure, etc.

After establishing the EII, began to consider the clean energy platform businesses and specific projects,
including combining hydrogen and power storage in Ishikari City, Hokkaido, and developing a renewableenergy value chain in the Kanto area

●Capture, store and utilize CO2 via carbon recycling, forestry business, CCS, and emissions credit trading, etc.
EII

Forests

Acquire and expand the scale of forest resources and improve the value of forest
assets•Continued developing projects to acquire and expand the scale of forest resources

EII

Green energy

Promote carbon credit businesses that contribute to real CO2 emission reductions•

Promoted carbon credit generating businesses through internal and external collaborations

Please see here for more details on the Forestry business in New Zealand.

© 2023 Sumitomo Corporation

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Sustainability of
Sumitomo Corporation
Group

FeatureFeatureEnvironment

SocialESG
Quantitative
Data

Governance

External
Recognition

Commitment
to External
Initiatives

Principles andPolicies

IBC
Stakeholder
Capitalism
Metrics

Sumitomo Corporation Group’s Key Social Issues and Goals / Progress
Circular Economy - Representative Initiatives

Long-term goals: Shift to recyclable, efficient technologies and products
Medium-term goals: Use renewable and recyclable raw materials, collect waste, and promote improved efficiency of product usage
Business unit

Field

Goals

Process●Expand use of raw materials derived from recycled or renewable resources.
Infrastructure

PET bottle
recycling

Expand the PET bottle recycling business (Tomra Japan Ltd.)•

Increased resource recovery by 3% (compared to FY2021)

Infrastructure

Logistics

Accelerate considerations for switching to biotech inner bags attached to the inside ofcontainers used for transportation and storage•

Completed commercialization and quality confirmations through transportation tests and storage tests.
Although the global supply of inner bag materials is in short supply, we will work to secure stable suppliers
and aim to achieve sales by the end of FY2023

Living Related &Real Estate

Fresh
Produce

At Fyffes plc, all packaging will be compostable, recyclable or reusable by 2025•

Completed introduction of compostable, recyclable, and reusable packaging for 98.78% of all products

Mineral Resources, Chemical
Energy, Chemical& Electronics

Expand sales volume of high value-added resins, demand for which is expected to growwith the shift to lighter weight automobiles and EVs•

Commercial operation started in February 2023. Currently working toward mass production

Mineral Resources, Chemical
Energy, Chemical& Electronics

Expand product sales volumes for a manufacturer of plastic substitute materials (plantderived materials) in which Sumitomo Corporation has invested•

Completed construction of a new plant in January 2023. Currently working on quality evaluation for stableproduction

Mineral Resources, Midstream/ Sell Security Matters Limited technologies and products for tracking raw materials andEnergy, Chemical Downstream products in the supply chainof metal& Electronics
resources•

Conclusion of a global exclusive distribution agreement with Security Matters in the non-ferrous metals
industry•

Summit Cosmetics Corporation and other cosmetic ingredient companies expanded their ranges of naturaland petroleum-alternative cosmetic ingredients, and worked with SC Foods Co., Ltd. to establish a supply
chain using food residues and other ingredients as raw materials•

With the aim of beginning commercial operation in FY2023, continued building large-scale battery energy
storage systems based on the secondary use of EV batteries in FY2022, and progressed to introducing thesystem at Chitose City, Hokkaido, which is larger than our previous facilities

Mineral Resources, Pharmaceuti Expand sales volume of sustainable cosmetic ingredients
Energy, Chemical cals &Cosmetics& Electronics
EII

Storagebattery

Promote the reuse of EV batteries and develop technologies. Create reuse opportunities

Please see here for more details on Large-scale energy storage business.

© 2023 Sumitomo Corporation

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Sumitomo Corporation
Group

FeatureFeatureEnvironment

SocialESG
Quantitative
Data

Governance

External
Recognition

Commitment
to External
Initiatives

Principles andPolicies

IBC
Stakeholder
Capitalism
Metrics

Sumitomo Corporation Group’s Key Social Issues and Goals / Progress
Circular Economy - Representative Initiatives

Long-term goals: Sustainable use of natural resources
Medium-term goals: Reinforce the sustainable procurement system for major natural resources used by the Group
Business unit

Field

Goals

Progress●Identify major natural resource-related commodities requiring sustainable procurement, establish procurement policy, promote certification, and strengthen voluntary auditing system.
•

Maintained Roundtable on Sustainable Palm Oil (RSPO) Mass Balance certification

Procure and promote the widespread use of Bird Friendly -certified coffee•

Maintained Bird Friendly® certification

Forestry

Obtain forest certification for most of our forested land holdings, and implement sustainable
management••

Continued to obtain CDP forest assessments
Began operating in line with the Forest Management Policy and Sourcing Policy for Forest Products

Forestry

Procure only forestry products managed in accordance with internationally recognizedcertification programs, of which legality and sustainability have been certified, and monitor
reforestation using remote sensing technologies (satellite image analysis)••

Conducted a reforestation monitoring trial using satellite image analysis
Began a reforestation monitoring trial for some suppliers through government database reviews

Living Related& Real Estate

Food
distribution

Promote the sustainable procurement of palm oil

Living Related& Real Estate

Food
distribution

EII
EII

®

●Improve efficiency of product usage and expand businesses that promote longer product life (sharing, sales of used items, leasing, rentals, etc.) .
Transportation& Construction
Systems

Automotive
sales &
marketing

Promote product lifetime extension through used car sales and after-sales services•

Focused on used car sales and after-sales services to work on extending product lifetimes

Transportation& Construction
Systems

Mobility hub

Promote the EV car-sharing service business•In addition to car sharing, expanded a subscription service for corporate and private customers, which isincreasing the user baseMedia & Digital

Communicati
ons

Achieve resource savings through the handset lifecycle management businesses(new device sales, collection, refurbishing and redistribution)•

Used handsets collection and redistribution to domestic and overseas markets© 2023 Sumitomo Corporation

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Sustainability of
Sumitomo Corporation
Group

FeatureFeatureEnvironment

SocialESG
Quantitative
Data

Governance

External
Recognition

Commitment
to External
Initiatives

Principles andPolicies

IBC
Stakeholder
Capitalism
Metrics

Sumitomo Corporation Group’s Key Social Issues and Goals / Progress
Respect for Human Rights - Representative Initiatives

Long-term goals: Respect human rights through all of our businesses and supply chains
Medium-term goals: Promote and ensure respect for human rights in accordance with the United Nations Guiding Principles on Business and Human Rights andSumitomo Corporation Group’s Human Rights Policy
Business unit

Field

Goals

Progress●By 2023, achieve 100% participation rate in human rights education based on the Guiding Principles, and 100% implementation rate in regional organizations and subsidiaries.
Company-wideー

By 2023, achieve 100% participation rate in human rights education based on the Guiding
Principles, and 100% implementation rate in regional organizations and subsidiaries.

•

Rolled out human rights education tool (e-learning) to all officers and employees of Sumitomo Corporation
and achieved 100% participation rate in FY2022●Strengthen risk analysis in human rights due diligence to accurately assess risks in all businesses, including the supply chain, and implement risk mitigation measures by 2025. Establish a more effective grievance mechanism based on
assessment results.
Company-wideー

By 2025, accurately assess risks for all operations, including supply chains•

Living Related &Real Estate

Food
distribution

In industries with high human rights risks, understand the human rights risk situation of
suppliers•

Living Related &Real EstateFresh Produce 【Fyffes plc】
[2025]・ Deliver a gender equality program to all employees of our own facilities in Central andSouth America, and to 50% of suppliers as well by 2030
[2030]
・ Provide human rights training to all stakeholders in the supply chain, and complete thistraining for our own employees and managers by 2025
・ Eliminate gender pay gaps within our own operations•

Living Related &Real EstateFresh Produce 【Fyffes plc】
・ Provide training on the freedom to unionize[2021]
・ Provide training to all managers[2025]
・ Provide training to 90％ of all employees•

Digital training content on freedom of association completed and has been rolled out to all managers. As of
July 2023 68% completion rate

Media & Digital

Communications•

In overseas telecommunications business, we have carried out a human rights impact assessment and wewill tackle and consider further actions to mitigate and prevent risks

Ensure that business operations comply with our Human Rights Policy•

Began human rights due diligence on a business-unit basis with the aim of covering all businesses by 2025,
and completed due diligence for four business units so far (Media & Digital Business Unit and Living
Related & Real Estate Business Unit in FY2021, and Infrastructure Business Unit and Mineral Resources,
Energy, Chemical & Electronics Business Unit in FY2022)
Conducted questionnaire surveys on human rights at about 210 overseas plants and farms
Digital training content on human rights completed.100% of owened sites started the Gender Equality
Program and nearly 5,060 workers have been trained
17% of employees on HR system have been trained

Please see here for more details on our human rights due diligence.

© 2023 Sumitomo Corporation

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Sustainability of
Sumitomo Corporation
Group

FeatureFeatureEnvironment

SocialESG
Quantitative
Data

Governance

External
Recognition

Commitment
to External
Initiatives

Principles andPolicies

IBC
Stakeholder
Capitalism
Metrics

Sumitomo Corporation Group’s Key Social Issues and Goals / Progress
Respect for Human Rights - Representative Initiatives
Medium-term goals: Reinforce the sustainable procurement system for major natural resources used by the Group
Business unit Field

Goals

Progress●Strengthen efforts to achieve zero accidents at major business workplaces, focusing on manufacturing, processing, and projects involving large-scale construction.
CompanywideーStrengthen efforts to achieve zero accidents

•

Metal
Products

Steel products

Implement intrinsic safety assurance activities and employee training, and improve activities
through PDCA cycle (utilizing TQM management techniques)

•

Metal
Products

Tubularproducts

Under a division slogan of “Beyond ZERO Harm,” aim to measure and minimize the Lost
Time Incident Rate (LTIR) and Total Recordable Incident Rate (TRIR) at each work site•

Reduce the number of work-related accidents•

Transportation Automotive& Construction manufacturing
Systems

Transportation Construction & Work-related accidents& Construction mining systems ・ LTIR
sales/constructi 2022: Companywide average of 0.75 or less
Systems
on equipment 2023: Companywide average of 0.5 or less・ Safety audits
rentalFY2022: 3 operating companies
FY2023: 4 operating companies••

Established the Occupational Safety Team in January 2022 as a team dedicated to promoting Groupwide
occupational safety. Providing support for emergency responses to work-related accidents within theGroup and to the development of recurrence prevention measures.
Also holding occupational safety seminars for Sumitomo Corporation and Group companies, sharing bestpractices within the Group to improve safety, and implementing the PDCA cycle for improvements.
Continued conducting self-audits based on a safety checklist and implementing the PDCA cycle for
improvements. Continued conducting safety audits of 17 operating companies and 34 plants, andcollaborating with each group company to eliminate work inside fenced areas during continuous operation.
There was 1 LTI and LTIR/TRIR was 0.22%.
As an awareness campaign to achieve zero lost time and work-related accidents, created a booklet
introducing the high frequency of accidents and how to handle it. The booklet is distributed to employees in
global tubular organization.
Also e-learning in Japanese and English for HSSE (Health, Safety, Security and Environment) has been
provided.
Reduced work-related accidents at KIRIU CORPORATION

LTIR：
Average of G-CMSD Group companies in 2022: 0.50 (met target).
Safety Audit：
Conducted safety audits for three Group companies during FY2022 (met target). Planning to conductsafety audits at four Group companies during FY2023, and continuing efforts to reduce accidents evenfurther.

Infrastructure

Power plant
infrastructure
EPC

Aim for zero Lost Time Injuries (LTI) through establishing HSE rules and through on-sighttraining and meetings•

HSE rules completed for each project. Even during on-site training and meetings, held while taking Covid
precautions, incidents occurred that led to LTIs.

Living Related& Real EstateFresh Produce

At Fyffes plc, by 2025 no work-related fatalities and no severe work-related injuries••

MineralResources,
Energy,Chemical &Electronics

Electronic parts Maintain zero work-related accidents at SUMITRONICS CORPORATION (in factories)

A companywide safety management system rolled out in Latin America
Continue with H&S campaigns. New Global H&S Director is being appointed to prioritise detailed gap
analysis on H&S safety structures across the businessOne fatality occurred in 2022 and 2023
Maintained zero work-related accidents

MineralResources,
Energy,Chemical &Electronics

Upstream of
metalresources

Reduce work-related accidents in the upstream mineral resources and energy business(The Ambatovy Project)© 2023 Sumitomo Corporation

•
•

•
•

In 2022, the total recordable injury frequency (TRIF) was less than 0.1, achieving the annual safety target
for the worksite
Identified causes at the time of the work-related accidents, took thorough measures to prevent recurrence,
and alerted everyone within the company through campaigns, etc. To foster a culture of safety,
implemented initiatives to formulate a process safety management system, define and implement workappropriate standard operating procedures, and update as necessary

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Sustainability of
Sumitomo Corporation
Group

FeatureFeatureEnvironment

SocialESG
Quantitative
Data

Governance

External
Recognition

Commitment
to External
Initiatives

Principles andPolicies

IBC
Stakeholder
Capitalism
Metrics

Sumitomo Corporation Group’s Key Social Issues and Goals / Progress
Respect for Human Rights - Representative Initiatives
Medium-term goals: Achieve a diverse organization grounded in mutual respect
Business unit Field

Goals

Progress●Provide a safe working environment that is free from discrimination and harassment.
CompanywideーProvide a safe working environment that is free from discrimination and harassment

•
•
•
•

As part of activities raising awareness for human rights and Dowa issues, conducted training for Group
executives and employees led by an outside expert
Conducted mandatory training for all employees to prevent harassment as an awareness activity toeliminate all forms of harassment.
Also provided tailor-made trainings (prevention of power harassment) for individuals according to theneeds of the organization.
Promoted the company-wide working group to enhance employee engagement.

●Promote human resource management that enables individuals to demonstrate their abilities regardless of nationality, age, gender, sexual orientation, gender identity, or any other attributes or values.
CompanywideーPromote human resource management that enables individuals to demonstrate theirabilities regardless of nationality, age, gender, sexual orientation, gender identity, or any
other attributes or values

•
•
•

•

© 2023 Sumitomo Corporation

Explicitly added the concept of Equity to D&I (DE&I) in order to support behavioral changes towardremoving barriers hindering individual performance
Continued Diversity Weeks (intensively developed programs aimed at permeating and realizing DE&I) and
implemented global collaboration
In Japan, set numerical targets mainly for promoting women’s participation and advancement in theworkplace and made efforts and took actions to achieve those targets. Actively appointed experienced
personnel to positions such as executive officer positions, and female and younger employees to
executive management and general managerial positions
Also, supported overseas regional organizations and DE&I measures tailored to the actual circumstances
at each site and country, and strengthened global collaboration

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Sustainability of
Sumitomo Corporation
Group

FeatureFeatureEnvironment

SocialESG
Quantitative
Data

Governance

External
Recognition

Commitment
to External
Initiatives

Principles andPolicies

IBC
Stakeholder
Capitalism
Metrics

Sumitomo Corporation Group’s Key Social Issues and Goals / Progress
Development of Local Society and Economy - Representative Initiatives

Long-term goals: Contribute to development of local industries and human resources
Medium-term goals: Develop local industries, create jobs, and develop human resources through the Group’s global business operations
Business unit Field

Goals

Progress●Promote sustainable, highly productive and value-added industries, and coexist with local communities through business.
Transportation Leasing& Construction
Systems

Expand efforts for the MIRAI 2030™ SDGs lease and introduce sustainability-related
products•

SDGs Leasing "Mirai 2030®" and Sustainability Link Leasing/Financing Transactions Expanded

Infrastructure

Overseasindustrial park

Promote the overseas industrial park business, continue to attract companies, create jobs,
and achieve regional development•

Promoted the overseas industrial park business (completion of the first phase of the Bangladesh Economic
Zones Authority, etc.)

Living Related Supermarket& Real Estate

Expand the introduction of new service menus, with stores functioning as local community
hubs

SUMMIT,INC】.
• Maintained contributions to local communities through participation in those communities andevents and handling locally grown vegetables.
• "Health Community Corner," commonly known as "Kenkomi,"* as a service based on a theme offood and health expanded to 6 stores by opening 3 new stores in FY2022.

MineralResources,
Energy,Chemical &Electronics

Upstream ofContribute to development of industries in Madagascar
metal resources•

Continued efforts to improve the skills of local employees through enhanced student internshipprograms and various training programs, with the aim of securing talented Madagascar humanresources

MineralResources,
Energy,Chemical &Electronics

Agricultural
input

•

Through Agro Amazonia Produtos Agropecuários S.A., a company involved in direct sales ofagricultural materials in Brazil’s midwest, acquired Nativa Agrícola e Representação LTDA., a
company involved in the same business in Brazil’s southeast, to expand geographical reach andenhance functions

•

Iraq:
Reached a cumulative total of 108 graduates from job training. Conducted job training incollaboration with UN’s IOM and UNDP
Libya:
Reached a cumulative total of 507 graduates from job training. Conducted job training incollaboration with UNDP

Improve productivity by making agricultural production more stable and efficient●Create employment and develop management and highly skilled human resources at the Group's business sites.
Transportation Automotive& Construction sales &marketing
Systems

Develop human resources in Iraq and Libya•

MineralResources,
Energy,Chemical &Electronics

Electronic parts Provide job training and worker education to employees (factories)•

Maintained 100% job training rate at SUMITRONICS CORPORATION* A collaborative service by Summit and Tomod’s designed to provide a “food and health” themed community space that is accessible to local customers.
© 2023 Sumitomo Corporation

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Sustainability of
Sumitomo Corporation
Group

FeatureFeatureEnvironment

SocialESG
Quantitative
Data

Governance

External
Recognition

Commitment
to External
Initiatives

Principles andPolicies

IBC
Stakeholder
Capitalism
Metrics

Sumitomo Corporation Group’s Key Social Issues and Goals / Progress
Development of Local Society and Economy - Representative Initiatives

Long-term goals: Develop industrial and social infrastructure
Medium-term goals: Establish industrial and social infrastructure that contributes to the sustainable development of society
Business unit Field

Goals

Progress●Promote infrastructure that enables access to high-quality energy, water, transportation, logistics, communications, and financial services, as well as businesses that enhance urban functions.
Transportation Commercial& Construction aviation
Systems

Build and expand the helicopter leasing portfolio, mainly focused on the helicopters for
emergency medical services and disaster relief missions•

Transportation Beyond Mobility& Construction
Systems

Contribute to the efficiency and sophistication of the logistics industry in Japan, which isfacing a logistics crisis, through entry into and expansion of the Robotics as a Service(RaaS) business•

Infrastructure

Generation

Contribute to local community and economic development through the steady execution of •existing projects

Infrastructure

Water / railroads Expand high-quality social infrastructure (water, railroads)

Media &
DigitalCommunications Develop telecommunications infrastructure in emerging countries and roll out various value- •added services on these platforms•••

Sumitomo Mitsui Finance and Leasing Company, Limited has grown its helicopter leasing portfolio, mainly
focused on the helicopters for emergency medical services and disaster relief missions(74% of overall
portfolio).
Total assets grew 2.5 times in the first two and a half years of business
Executed a comprehensive distributorship agreement for AI robotics software in high-precision robots forlogistics warehouse automation in Japan
Maintained stable operations at existing power plants currently in operation
Increased treatment capacity by 7%（compared to FY2021) by expanding the water businessContinuing to work toward receiving orders, and steadily fulfilling contracts for new railway projects.
Contributed to resolving social issues, including traffic congestion, by expanding the railroad business.
(Passengers on Line 1 of the Manila LRT System increased by 68% compared to the end of FY2021.)
Developing telecommunications infrastructure in Ethiopia

Please see here for more details on Integrated telecommunications business in Ethiopia.

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IBC
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Metrics

Sumitomo Corporation Group’s Key Social Issues and Goals / Progress
Improvement of Living Standard - Representative Initiatives

Long-term goals: Provide advanced lifestyle-related services
Medium-term goals: Deliver advanced lifestyle services that help to solve social issues such as urbanization and aging populations
Business unit Field

Goals

Progress●Provide more advanced services and new functions that improve the standard of living, such as mobility, media and telecommunications, healthcare services, and smart city development, based on new technologies and concepts.
•

Completed the proof-of-concept trials for a mobile shop services business utilizing mobility

Transportation Mobility& Construction
Systems

Improve convenience for consumers through the mobile shop services business that
capitalizes on mobility and provide mobile shop services to revitalize communities

Infrastructure

Smart city

Developing infrastructure that contributes to better lifestyles for people through the sustainable •city development

Infrastructure

Overseas
Provide a variety of welfare services to build local infrastructure for employees working at our •industrial park industrial parks

Media &
Digital

5G

Promote businesses aimed at realizing a 5G society and sustainable cities (base station
sharing, local 5G)••

Media &
DigitalCATV

Through JCOM Co., Ltd., provide online entertainment and lifestyle services that make life
more convenient and contribute to a comfortable and exciting life•

Provided entertainment and lifestyle services, such as CATV, Internet, fixed phone, electric power, andmobile phone, to 5.63 million households

Media &
DigitalCATV

Through Telemedicine service through cable television(J:COM), provide services that help
resolve social issues in community healthcare services, aging, and other areas•

Added an online medication guidance on telemedicine service through cable television(J:COM)Media &
DigitalTV shopping

Through Shop Channel, provide products and services that contribute to comfortable andexciting lifestyles•

Living Related& Real Estate

Health Care

Build a domestic healthcare platform to support Japan’s aging society•

Via Shop Channel, sold curated products such as fashion items and beauty-related products, provided
services such as travel, hobby and entertainment experiences, and promoted social commerce businesses
using social media
Provided pharmaceutical and daily necessity sales and the functions of a dispensing pharmacy throughTomod’s drugstore and dispensaries and Yakuju Corporation dispensing pharmacies mainly in the Tokyo
metropolitan area (239 Tomod’s stores and 151 Yakuju stores as of the end of FY2022)
Enhanced the functions of dispensing pharmacies by offering home dispensing and online dispensing
services
Achieved the transformation of the Malaysian managed care business into a holding company andstrengthened its foundation.
Strengthened the foundations of the managed care business and investigated participating in peripheralbusinesses in Vietnam
Through collaboration with group companies and new business partners, currently examining precision
agriculture technologies and services that contribute to improved crop yields, work efficiency, and traceability•
Living Related& Real Estate
MineralResources,
Energy,Chemical &Electronics

Health Care

AgriProvide optimal medical care in optimal locations and help keep the costs of healthcare down •in each country•
Leverage new technologies to optimize agricultural inputs, improve productivity, and further
stabilize incomes for crop producers•

The North Hanoi Sustainable City： Obtained approval for urban planning in Vietnam/Progress on land
expropriation/ Concluded a basic agreement with BRG (a major local real estate company in Vietnam) toestablish a town management company (made a strategic move toward the realization of SDGs and ESG
investment, which have received little attention in Vietnam, including various town management services that
contribute to solving social issues, community hub initiatives focusing on medical and educational fields tomeet residents' needs, and innovation co-creation activities)
Provided a variety of welfare services (childcare center booking service, health checkups, education, café
within the industrial park, etc.) via a digital platform for tenant companies and employees at Thang Long
Industrial Parks in Vietnam
Provided 5G base station sharing services mainly in the Tokyo metropolitan area
Provided Local 5G infrastructure services, and conducted Local 5G proof-of-concept trials with cable TV
operators and railroad operators for commercialization

Please see here for more details on Next-generation agribusiness.
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Sumitomo Corporation Group’s Key Social Issues and Goals / Progress
Quality Education - Representative Initiatives

Long-term goals: Contribute to quality education
Medium-term goals: Provide quality and equal learning opportunities through 100SEED activities
Business unit Field

Goals

Progress●Quantitatively expand the scope of learning opportunities.
CompanywideーQuantitatively expand the scope of learning opportunities•••

Through the “Mirai School” career education support program, supported career education for a
cumulative total of 10,700 students at 68 high schools across Japan in the three years from 2020 to 2022
Through “Pro Bono Educational Support,” assisted a cumulative total of 24 organizations to strengthen
23
their organizational foundations over these three years in order to support non-profit organizations (NPOs)
working to address education issues
Through “Educational Support for a Multi-cultural Society”, supported eight NPOs and children with foreignroots●100% satisfaction of beneficiaries.
Companywideー100% satisfaction of beneficiaries•

Achieved nearly 100% satisfaction among beneficiary NPOs and high school students●Continue to have at least 5% of all employees participate annually (scope is Sumitomo Corporation, regional organizations and Group companies).
CompanywideーContinue to have at least 5% of all employees participate annually(Boundary is Sumitomo Corporation, regional organizations and Group companies).

••

More than ５% of employees participated at the Head Office and regional organizations in Japan andoverseas.(In FY2022, 53 projects were implemented in 19 countries）
100SEED received a special award at the 19th Corporate Philanthropy Award in recognition of companywide efforts involving both employees and management

Please see here for more details on 100SEED.

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Environmental Management
Policy and Concept

Sumitomo Corporation Group Environmental Policy

Throughout its 400-year history, Sumitomo Group has

Ⅰ. Basic Policy

pursued industrial development in harmony with local

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

communities and the natural environment. Based on thisfoundation, Sumitomo Corporation Group pursues businessactivities 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 andlong-term concerns that all individuals and organizations
must address, we have established our Environmental Policy
as detailed on the right. Sharing this policy, Sumitomo
Corporation Group companies are committed to reducing theenvironmental impacts of their business activities as well as
to improving the environment through their business activities,
based on the ISO 14001 environmental management system.

Ⅱ. Basic Guidelines
In pursuing its diversified business activities both within Japan and overseas, the Sumitomo Corporation Group shallcomply with the following guidelines, and, through cooperation between its Group companies, work to achieve the aimsof 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 theSumitomo 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.

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Environmental Management
SystemTarget and Result▌ Environment Management Structure
Sumitomo Corporation Group has established, based on the environmental policy, theenvironmental management structure with the Corporate Sustainability Committee as the centerof 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 inJune 1999, the coverage of the system has been extended continuously. About 20,000
employees in domestic locations of Sumitomo Corporation and certain group companies
participate in these environmental management activities. At the ISO 14001 Group Companies
Conference, which consists of Sumitomo Corporation and ISO 14001 integrated certificationgroup 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.

To achieve carbon neutrality and a circular economy by 2050, Sumitomo Corporation (nonconsolidated in Japan) has set a base year and long-term goals for electricity consumption,water withdrawal and waste emissions on Non-consolidated in Japan and is promoting
environmental improvement activities.
Long-term goals (Non-consolidated in Japan)
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 Withdrawal

To reduce water consumption per employee by an average of at least 1% annuallyfrom base year of FY2010.

Waste Emissions

To reduce waste emissions per employee by an average of at least 1% annuallyfrom base year of FY2010.

The targets converted from long-term goals and results of FY2022, targets of FY2023 are as
follows.
Index║ ISO14001 Environmental Management System
Management Council

Electricity
Consumption

Corporate Sustainability Committee(Chairman: )ISO14001 Group Companies
Conference(Secretariat: Corporate Sustainability Dept.)

Environment Management
Representative
Sumitomo Corporation

ISO14001 Integrated Certification Group Companies

EMS Officers(GM of Corporate Sustainability Dept.)EMS Officers

EMS Promoters

EMS Promoters

Eco Leaders

Eco Leaders

Water
Withdrawal

Waste Emissions

Results of theBase year

Targets of
FY2022

Results of
FY2022

Targets of
FY2023

Consumption
(MWh)

7,859

5,486

3,398

5,343

Intensity(MWh/m2)

0.10790.0986

0.0621

0.0976

Withdrawal(m3)

32,191

20,393

8,278

20,548Intensity(m3/employee)

6.93

6.14

2.45

6.08

Emissions
(t)

508

322

49

324

Intensity(t/employee)

0.109

0.097

0.014

0.096

All employees working each office
ISO14001 Integrated Certification Group Companies(Sumitomo Corporation and 26 Group companies as of April 2023)© 2023 Sumitomo Corporation

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Environmental Management
Targets
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
related to climate change that stated in Medium-Term Management Plan “SHIFT 2023”, in which we aim to achieve carbon neutrality in 2050. At Sumitomo Corporation, Eco Leader identifies the environmental aspects ofeach department and evaluates their impacts, and defines risks and opportunities considering relevant compliance obligations. Based on the results, EMS Promoters specify significant environmental aspects, risks andopportunities 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

FY2022 Major Environmental Achievements

Comply withenvironmental laws andregulations• Implement continuing education program on the
Waste Disposal and Public Cleansing Act and otherenvironment-related laws/regulations• Held trainings by Corporate Sustainability Department• Conducted education of legal compliance in e-learning environmental course

Pursue environmentallysound projects• Expand renewable energy businesses• Promoted renewable energy businesses both in Japan and abroad: developed new offshore wind power
generation projects in France and Vietnam, implemented the solar power project in Australia and in
Minamisoma City in Fukushima Prefecture, Japan, in Thang Long Industrial Park II, Vietnam, geothermal
power plant in Indonesia and New Zealand, use of renewable energy fund, etc• Promote businesses that help create a recyclingoriented society• Promote other businesses to reduce environmental
burdenManage and reduce
environmental burden• Measure and reduce electricity consumption/gas
consumption/water withdrawal 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

Promote environmental
education andcommunication related toenvironmental issues• Hold events, including awareness-raising seminars
related to environmental conservation• Promoted businesses to create a recycling-oriented society, to reduce environmental burden:
Sustainable forest management, verification of a large-scale power storage system utilizing reused EV
batteries in Satsumasendai City in Kagoshima Prefecture, initiatives to expand the introduction of electricbuses, promotion of hydrogen-related businesses including efforts for Japan-Australia Hydrogen Supply
Chain Development, Sales of lithium carbonate produced in the U.S, acquisition of J Blue Credit® for thelargest ever amount of CO2 absorption in Hirono Town, Iwate Prefecture, a CO2 mineralization project in
the U.K., collaboration with Global Green Chemicals (GGC) in Thailand to create a circular economy in
the area of green chemicals, etc.
• Electricity consumption/gas consumption/water withdrawal and waste generation decreased in FY2020
due to COVID-19 lockdown or working from home.
In FY2021＆FY2022, office work increased and those environmental burdens increased compared to theprevious year.
• Measured consolidated environmental data
• Conducted environment assessments on mine development and mining operation businesses abroadand on domestic construction and real estate businesses, as well as Environmental Management• Continued to hold trainings on environment-related laws/ordinances including “Latest trends andSumitomo Corporation initiatives in carbon credits” and “Environment and politics/economy: Political andeconomic aspects of green energy,” etc• Promote effective use of environmental management
systems• Conducted e-learning environmental course which was completed by 100% of new employees• Expand disclosure of non-financial information• Publication of ESG Communication Book 2022

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Environmental Management
Activities▌ Internal Environmental Audit▌ Environmental Educational Activities

Sumitomo Corporation conducts internal environmental audits on an annual basis to ensure theenvironmental management system of Sumitomo Corporation and group companies with
ISO14001 integrated certification are properly functioning.

Sumitomo Corporation Group develops a variety of educational programs to help its employees
engage in environmental conservation. We raise environmental awareness among all Group
employees by organizing such programs as trainings on environmental laws and regulations aswell as global environmental issues given by outside experts.

〈Audit Priority Items〉(1) proper establishment of environmental targets,(2) management of progress in implementing the environmental action plan,(3) evaluation of compliance with legal requirements and(4) implementation and enhancement of environmental training.
As a result of the audits in 2022, serious nonconformity was not found.

▌ External Audit
In February 2023, the third-party audits wereconducted by an independent auditingorganization, Japan Quality Assurance
Organization, for the renewal of the current
ISO 14001 certification status. We received
approval as a result of the audits.
ISO14001 Management System Certificate© 2023 Sumitomo Corporation

Theme

Summary

Number of
Activities

Training on the
ISO 14001
Environmental
Management System(release of video)

The management principles, environmental
contribution activities and the processes of anenvironmental management system in accordancewith the ISO 14001 international standard.

All year roundTraining for internal
environmental
auditsThe basics and processes of internal environmental
audits, through exercises, to be able to conduct
audits effectively.

Twice a year

Trainings on industrial
waste disposal

Practical knowledge, including responsibilities ofindustrial waste generators, contract criteria andproper disposal methods.

Twice a year

Trainings onenvironmental laws andregulations

The latest trends in environmental laws andregulations, basic knowledge on these, and points tonote to comply with the laws and regulations.

Twice a year

Basic environmental
education（e-learning）

Sumitomo Corporation Group’s environmental policy
and its environmental management system.

once a year

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Our Climate Change Initiatives: Disclosure Based on TCFD Recommendations
The issue of climate change is an important issue that must be overcome to bring about a sustainable society. Global efforts towards the faster realization of a carbon neutral
society are accelerating. We value the global consensus of the Paris Agreement, and in order to play a more active role in achieving the carbon neutralization goals of society set
forth in the agreement, we reviewed our “Policies on Climate Change Issues” in May 2021. We have set medium-term goals that show a clearer action plan for “Climate Change
Mitigation” and its long-term goals, one of our six important social issues. (For medium-term goals, please refer to p.9 and p.59) Subsequently, in February 2022, we reviewed
our "Policies on Climate Change Issues" again, and we now state that we will not be involved in any new coal-fired power generation business neither IPP (Independent Power
Producer) nor EPC (Engineering, Procurement, Construction).
Policies on Climate Change Issues
Basic Policy Aim to make the Sumitomo Corporation Group carbon neutral in 2050*1.
Develop technologies and business models for creating a sustainable energy cycle by reducing CO2 emissions and achieving negative emissions*2 for society as awhole.
 In addition to reducing and absorbing CO2 emissions from our business, we will contribute to the carbon neutralization of society through cooperative initiatives andrecommendations made with business partners and public institutions.
Policy on Business Activities
 Promote renewable energy, efficient energy utilization and fuel conversion that contributes to reducing CO2 emissions throughout society. We will also work to offer
new energy management and mobility services utilizing renewable energy and also to materialize hydrogen technologies and applications.
 In the power generation business, we provide a stable supply of the energy, essential for the economic and industrial development of local communities. At the sametime, we continuously shift management resources to renewables and other energy sources with low environmental burden in the power generation portfolio. (in 2035:
20% for coal-fired, 50% for gas-fired, and 30% for renewables in terms of net ownership generation capacity*3)
 Regarding the development of thermal power generation and fossil energy concession, we will work on the premise of carbon neutralization in 2050.
We will not be involved in any new coal-fired power generation business neither IPP (Independent Power Producer) nor EPC (Engineering, Procurement, Construction).
For IPP business, we aim to reduce CO2 emissions by 60% or more by 2035 (compared to 2019) and we will end all the coal-fired power generation business in thelate 2040s.
We will not make any further investment in the thermal coal mining interest and aim to achieve zero production from thermal coal mines by 2030.
*1 The scope of business targeted for carbon neutralization is as follows[Scope1・2] Direct CO2 emissions from Sumitomo Corporation and its subsidiaries, as well as indirect CO2 emissions from the generation of energy used by eachcompany (however, for power generation businesses, emissions from those affiliated companies under the equity method are also included)[Scope3] Indirect CO2 emissions associated with the use of energy resources produced by fossil energy concession of Sumitomo Corporation Group, its subsidiaries,
and affiliated companies under the equity method.
Carbon neutrality means net-zero CO2 emissions that combine CO2 emissions from our business and our contributions to CO2 emission reduction.
*2 Negative emission refers to the absorption, capturing, and removal of CO2 emitted in the past and accumulated in the atmosphere.
*3 As of 2020：coal 50%, gas 30%, renewables 20%© 2023 Sumitomo Corporation

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Our Climate Change Initiatives: Disclosure Based on TCFD Recommendations▌ Governance（Structure for Responding to Climate Change Issues）
 With regard to the various opportunities and risks related to climate change issues involved in theGroup‘s diverse business activities, the Board of Directors receives periodic reports on strategies in
the Group's diverse activities each business field, their progress, and the status of risks affecting thecompany's entire business portfolio, and monitors whether appropriate management is being carriedout. In addition, the Board of Directors adopts resolutions establishing policies on the Group's
responses to climate change problems and discusses the handling of important issues related topolicies on responses to climate change issues.
 For example, our Management Council repeatedly discussed the path for achieving the Group‘s longterm goal of “Aim for carbon neutrality by 2050 and challenge to realize sustainable energy cycle,” thepolicies of our power generation and energy-related businesses, and the initiatives necessary torealize a carbon neutral society. Based on these discussions, the Board of Directors adopted aresolution to establish medium-term goals for "Climate change mitigation" and to review the "Policies
on Climate Change Issues.” The Group holds biannual strategic conferences with the participation ofManagement Council members to discuss strategies in each business field including measures for

Board of Directors
Decision making, supervision

Management Council
Decisions on formulation andimplementation of strategies• Continuous monitoring• Strategic business promotion• Companywide risk management

addressing social problems such as climate change under the Medium-term Management Plan.
 In addition to the measures taken by individual business units with regard to the opportunities andrisks presented by climate change issues, the Corporate Sustainability Department, a dedicatedorganization for dealing with social problems, the Corporate Planning & Coordination Department,
which creates the company's overall management plans and formulates key initiatives, and the risk
management organizations work together, formulating company-wide policies and promoting
necessary initiatives. Based on information provided by investigative organizations and sales

Corporate Planning &Coordination Department

Company Investment
Committee
Corporate Strategy
Promotion Committee
Corporate Sustainability
Committee
Sustainability
Advisory Board

Corporate Sustainability
Department

Information collection, analysis of
circumstances, reporting

Risk Management
Organizations

Overseas Sites

organizations within the Group, overseas sites, and other parties, they deliberate on company-widemeasures.
 The Corporate Sustainability Committee (chairperson: Chief Strategy Officer, secretariat: Corporate
Sustainability Department) follows global climate change mitigation trends and the Corporate Strategy
Promotion Committee (chairperson: Chief Strategy Officer, secretariat: Corporate Planning &Coordination Department) deliberates on strategies and risk management measures related toclimate change. The two committees provide reports and refer issues to the Management Council,
which makes critical decisions regarding climate change-related measures.

Sumitomo Corporation
Group Business Portfolio
Business Units and Initiative
Pursuit ofOpportunities

Responses to
Risks

Circumstances Concerning
Climate Change Technological Innovation
 Regulations, carbon pricing
 Mitigation of global climatechange Abnormal weather, natural
disasters

 In addition, we established the Sustainability Advisory Board in March 2023, which consists of external
experts on ESG, to receive advice and recommendations from on overall sustainability management
for further strengthened initiatives© 2023 Sumitomo Corporation

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Our Climate Change Initiatives: Disclosure Based on TCFD Recommendations▌ Strategy: Climate Change-Related Risks and Opportunities
Steady Advancement of the Business Portfolio SHIFT
Mitigating climate change is a serious challenge that must be overcome to realize a sustainable society. As such, we must make the transition to a society that emits as little CO2, methane, andother greenhouse gases as possible by converting to renewable energy and other forms of clean energy and conserving energy in industries and households. It will also be necessary to balance
residual emissions and absorption of CO2 to create a sustainable energy cycle by maintaining and recovering CO2
absorbed by forests, marine plants, and other natural capital and capturing, storing, and utilizing CO2 through new technologies and business models that consider it a resource.
The Sumitomo Corporation Group has set forth a long-term goal of realizing carbon neutrality within the Group by 2050. In addition to setting milestones to achieve this goal, we are steadily
promoting the use of internal carbon pricing and the creation of next-generation businesses centered on the Energy Innovation Initiative (EII).
The decarbonization movement is spreading to diverse industries with a global presence. We will steadily shift our business portfolio by addressing the risks brought about by the accompanying
changes in technology and business models while at the same time cultivating the business opportunities presented by the social needs created by those same changes.

Use of Internal Carbon Pricing (ICP)[Purpose]

ICP is a measure to support our climate change initiatives. We regularly monitor thecompanywide impact of potential climate change-related risks and opportunities, aswell as the status of responses to them. The results of such monitoring are reported
and discussed at the Corporate Sustainability Committee and other groups,
reported to the Management Council and the Board of Directors, and additional
measures are considered and introduced as necessary. In individual businesses,
we identify medium- and long-term risks and opportunities related to climate change
to ensure that countermeasures can be promptly considered.

[Outline of Utilization]••

dottedcirclebubble：social, environmental, and economic value which our group

Using the carbon price in the 1.5°C scenario (NZE scenario(*)), the carbon
emission cost for the amount of CO2 emissions from the Group's businesses
subject to the goal of becoming carbon neutral, the environmental value
associated with measures such as CO2 capture, storage and utilization throughbusinesses, and businesses that contribute to CO2 reduction are all visualized
in an integrated manner and monitored annually.
For individual investment projects, we also assess whether or not there is any
impact on future business and corresponding measures through visualization ofcarbon emission costs, environmental value, and CO2 reduction contribution,
and analysis based on the 1.5°C scenario, etc., for new and existing investment
projects with large potential future risks and opportunities.

create through the business activities：image of business scale which our group expand© 2023 Sumitomo Corporation*Net Zero Emission Scenario
A scenario by the International Energy Agency that assumes global net zero
emissions by 2050 (1.5°C increase since the Industrial Revolution).

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Our Climate Change Initiatives: Disclosure Based on TCFD Recommendations▌ Strategy: Climate Change-Related Risks and Opportunities
Steady Advancement of the Business Portfolio SHIFT（ Achieving Carbon Neutrality across the Group ）Toward the Group‘s goal of becoming carbon neutral by 2050, we have established specific milestones for CO2 emission reduction as shown in the chart below and are steadily
promoting them. In FY2022, we sold a part of the fossil fuel upstream business and pursued a shift in our business portfolio through measures such as the promotion of the renewableenergy business, while also studying ways to decarbonize the existing coal-fired power generation business and shift it to a low-carbon business.
Coal-fired power generation business

Sumitomo Corporation policy
 No involvement in any new coal-fired power generation business, neither
in IPP nor EPC, without any exception
 End all coal-fired power generation business by the late 2040s
Approach to efforts
From the perspective of our social responsibility, including the development oflocal communities and economies and our obligation to supply, we will pursue
every option, not eliminating the possibility of accelerated withdrawal from thebusiness, while implementing the following efforts to accelerate thedecarbonization of our Company and society as a whole Consensus building based on sincere dialogue with host countries, local
communities, and other stakeholders
 Pursuit of consideration and efforts toward the decarbonization and low
carbonization of existing facilities
 Maximum support for host countries to shift power sources to renewableenergy and other sources

News① ＜Basic agreement with state-owned electric company in Indonesia to accelerateenergy transition＞
Demand for electricity is expected to increase fivefold to sevenfold by 2060 in Indonesia as thecountry’s economy and population continue to grow. At the same time, however, it aims toachieve net-zero greenhouse gas emissions, which currently stand at approximately 1.8 billion
tons. The Group is accelerating the new development of renewable energy power generation
projects and promoting studies on the early transfer or shutdown of existing coal-fired power
plants in order to support stable energy supply and carbon neutrality in Indonesia. We will cocreate a comprehensive ecosystem, including attracting investment from green industries that
require renewable energy.
© 2023 Sumitomo Corporation

News② <Upward revision of renewable energy supply expansion target for 2030>
Based on the fact that the number of highly feasible pipeline projects is on the rise, we
updated our target for net ownership generation capacity from 3 GW or more to 5 GW or
more. We will establish businesses that will form the foundation for a sustainable energy
cycle through the expansion of the renewable energy power generation business of theInfrastructure Business Unit and the creation of next-generation businesses in a
decarbonization and recycling energy system sought by the EII.

31

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Group

FeatureEnvironment
Environment

SocialGovernance

ESG
Quantitative
Data

External
Recognition

Commitment
to External
Initiatives

Principles andPolicies

IBC
Stakeholder
Capitalism
Metrics

Our Climate Change Initiatives: Disclosure Based on TCFD Recommendations▌ Strategy: Climate Change-Related Risks and Opportunities
Contribute to Realization of a Carbon Neutral Society (Creation of Next Generation Businesses Centered Around the EII)
We are promoting business development in the EII’s three focused areas and cross-organizational efforts with existing business units to build decarbonized, recycling
energy businesses. We are globally advancing various stages of business development to create next generation businesses that contribute to the realization of acarbon neutral society.
In FY2022, we launched an overseas organization to establish a global system and established three new business lines, including the Indonesia Energy Transition
Dept. We aim to build a future revenue base for the group with diverse insights from both internal and external sources and promoting business development throughcross-organizational collaboration that goes beyond conventional regional and divisional boundaries.

Major Initiatives and Progress

1

Investment in TAE Technologies, a fusion energy company in the
United States

1

MOU concluded on collaboration for the first commercial
production of cellulosic bioethanol from woody biomass in Japanand its development into bio-chemical products

1

Joint feasibility study on clean hydrogen production extracted
from gasified Latrobe Valley coal in Victoria, Australia

2"Denki no Eki – Battery Energy Storage business in Kyushu",joint project by Kyushu Railway Company and Sumitomo
Corporation Group22
2・Ammonia ・Next generation bio ・Steelmaking (zero-carbon steel)・CCUS・ Electric power balancing ・Utilizing Innovations (Hydrogen)

Scale of next-generation energy-related investments by the Sumitomo Corporation Group:¥1.5trillion (2030 plan)© 2023 Sumitomo Corporation

Launch of distributed generation solar PPA and EV sharing
business at the Higashi-Hiroshima campus of Hiroshima
University
Inauguration of distributed generation solar PPA business for
THE OUTLETS SHONAN HIRATSUKA
Rio Tinto and Sumitomo Corporation to build hydrogen pilot
plant for world's first trial lower-carbon alumina refining in
Gladstone

2
3

Joint development agreement for low-carbon hydrogen productionin the vicinity of the Bacton gas terminal in the UK

3

Investment in a DAC technology pioneer company and joint
business development in the CCUS sector

12
3

MOU concluded with the State of North Dakota, United States, forcooperation in the decarbonization field
32

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Group

FeatureEnvironment
Environment

SocialGovernance

ESG
Quantitative
Data

External
Recognition

Commitment
to External
Initiatives

Principles andPolicies

IBC
Stakeholder
Capitalism
Metrics

Our Climate Change Initiatives: Disclosure Based on TCFD Recommendations▌ Strategy: Climate Change-Related Risks and Opportunities
 The problem of climate change can be broadly classified into two categories: transition risks posed by changes in policies and regulations, technological developments, market trends, andmarket evaluation, etc., and physical risks posed by an increase in natural disasters and extreme weather conditions due to climate change.
 For transition risks, various regulations may be introduced in the future to encourage carbon emissions reductions and decarbonization in the long term, and advances in international
deliberations, revisions to the greenhouse gas reduction plans of individual countries, and changes in the technologies and markets of diverse industrial fields may bring about various
changes in our Group's business environment. We are analyzing the impact on businesses including power generation/energy and resource-related businesses, automobiles, aircraft,shipping business, steel, chemicals, cement, aluminum smelting, real estate, and forestry, which are presumed to be fields that face a relatively high risk of change in the businessenvironment. It is assumed that there are risks that affect business activities in these fields. By recognizing the magnitude of the risks through regular scenario analysis and considering
appropriate countermeasures, we are working to keep the negative impact on business performance to a minimum. We are also strengthening initiatives that contribute to the development ofbusiness opportunities, such as the construction of carbon-free and recyclable energy systems.
 Physical risks are largely divided into chronic risks that have continuous and chronic impacts on business activities, (e.g., rise in average temperatures, change in rainfall patterns, rise in sea
level, etc.) and acute risks caused by unforeseen damage (e.g., escalation of extreme weather conditions such as huge rainstorms, flooding, drought, and forest fires, etc.). The impact iswide-ranging, including direct impact on production site facilities and working conditions, and indirect impact on a broad range of supply chains of raw materials and products. For ourbusiness in a broad range of fields and regions, we focus on power generation business including renewable energy, upstream resources and energy business, real estate business,
agriculture, and forestry business as areas where risks are relatively high and analyze their impact on our business. We manage risks by assessing the impact of local weather andgeographical factors on our business at the time of investment, conducting continued assessments after participation in the business, clarifying the scope of contractual responsibility, andconcluding nonlife insurance policies.
Scenario Analysis
 We see climate change as a major issues faced by the entire world, and we identify businesses on which climate change will have a significant impact and perform scenario analysis basedon the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD).

Target sector

Scenarios forconsideration andtemperature range© 2023 Sumitomo Corporation

 The forestry business was added as a new business that is more susceptible to climate change and has a large sales scale.
 In addition, in order to strengthen our response measures, the energy and resources business has been broken down into smaller segments, and moredetailed environmental changes have been made.

 The scenarios set by the IEA have been reviewed in light of the progress of policies and technological innovations in various countries to date.
 In order to inspect the risks and opportunities in line with the global situation, the following updated scenarios have been adopted. SDS has been excluded
from the last year's list and STEPS has been added. In addition, PRI scenarios are newly referenced in response to the addition of the forestry business.
 STEPS: Stated Policies Scenario (2.5°C rise by 2100*)
 APS: Announced Pledges Scenario (1.7°C rise by 2100*)
 NZE: Net Zero Scenario (1.5°C rise by 2100*)
 FPS: Forecast Policy Scenario (less than 1.8°C rise by 2100*)
 RPS: 1.5° Required Policy Scenario (1.5°C rise by 2100*)* Since the Industrial Revolution 33

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FeatureEnvironment
Environment

SocialGovernance

ESG
Quantitative
Data

External
Recognition

Commitment
to External
Initiatives

Principles andPolicies

IBC
Stakeholder
Capitalism
Metrics

Our Climate Change Initiatives: Disclosure Based on TCFD Recommendations▌ Strategy: Climate Change-Related Risks and Opportunities
Climate scenario selection
 In the event of significant changes to the business environment from the perspective of objectively evaluating new business opportunities and business resilience, we are
analyzing the impact on business by 2050 using the below scenarios. In doing so, we primarily reference the IEA (International Energy Agency) and PRI (Principles for
Responsible Investment). These scenarios are referenced as examples of possible changes in the business environment of each sector for long-term trends in global
climate change mitigation, and do not necessarily represent assumptions for our management policies or business strategies.
* Since the Industrial Revolution
IEA STEPS（The Stated Policies Scenario ）:Approx.
2.5℃

A scenario that shows the direction in which the energy system is headed if nospecific additions are made to the policies set as of September 2022 *2.5°C
increase by 2100 (50% probability)

IEA APS（Announced Pledges Scenario）：

Referenced
scenarios

A scenario, in which all pledges on climate change by national governments,
including Nationally Determined Contribution (NDC) and long-term net-zero targets,are assumed to be met within the given time frame*1.7°C increase by 2100 (50% probability)

Approx.
1.5℃

IEA NZE (Net Zero Emission Scenario)：

A scenario that backcasts global accomplishment of net zero by 2050
*1.5℃ increase by 2100 (50% probability)

PRI FPS（Forecast Policy Scenario）：

A scenario that models the impact of forecasted policies on the real economy
through 2050 and traces the impact on all emission sectors *Less than 1.8°C
increase by 2100(50% probability)

PRI RPS（Required Policy Scenario）：

The 1.5°C Required Policy Scenario based on the IEA NZE scenario with in-depth
analysis on policy, land use, emerging economies, NETs, and value drivers. *Lessthan 1.5°C increase by 2100(50% probability)*Analysis Conducted Based on Changes in the External Environment Related to the Entire GroupIn November 2022, the Sharm el-Sheikh Implementation Plan and the Mitigation Work Programme, which call for increased efforts to achieve the 1.5°C target, were adopted at COP27 (the 27th Conference of the Parties to the United
Nations Framework Convention on Climate Change). The plan follows last year's Glasgow Climate Pact, which called for strengthening climate change measures by the member countries in areas such as mitigation, adaptation, loss
and damage, and climate finance. For initiatives aimed at achieving a carbon-neutral society at an early stage, decarbonization of individual industries in each country and region, reduction of emissions throughout the supply chain
including Scope 3, expansion of decarbonized products based on LCA (Life Cycle Assessment), as well as carbon pricing and promotion of sustainable finance, and other cross-industry decarbonization measures are promoted.
The introduction or strengthening of national and regional emissions trading schemes and carbon taxes, coupled with the Carbon Border Adjustment Mechanism being considered in Europe and other regions, may have an impact on
the entire supply chain of various industries beyond national and regional boundaries. The carbon price outlook varies from region to region and is projected to be $29~113/t-CO2 under the STEPS scenario, $47~200/t-CO2 under the
APS scenario, and $180~250/tCO2 under the NZE scenario in 2050. The carbon tax and carbon price levels for emission trading in the future will have a significant impact on the performance of businesses, especially in carbonintensive industries. In addition, countries and regions are developing guidelines for sustainable finance, such as the EU taxonomy, to encourage the use of low-carbon and decarbonizing technologies in financial aspects.
Because the weight of carbon-intensive manufacturing businesses is limited in our business portfolio, the direct impact of the aforementioned developments is expected to be limited. However, we monitor the latest trends in climatechange risks and opportunities, referring to the international disclosure standards by ISSB (International Sustainability Standards Board) and other relevant organizations, and attention will be directed to the impact of these
decarbonization promotion measures and policies on the supply chains that are linked to our business operations in order to explore into new business opportunities with attention to changes in technologies and business models that
help minimization of risks and decarbonization.
© 2023 Sumitomo Corporation

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Group

FeatureEnvironment
Environment

SocialESG
Quantitative
Data

Governance

External
Recognition

Commitment
to External
Initiatives

Principles andPolicies

IBC
Stakeholder
Capitalism
Metrics

Our Climate Change Initiatives: Disclosure Based on TCFD Recommendations▌ Identifying the Businesses for Which to Perform Scenario Analysis
 Our scenario analysis scope encompasses all of our business sectors which will be highly affected by business environment changes related to climate change mitigation, regardless of the scale of the business.
 This fiscal year, we have conducted scenario analysis for businesses in energy, resources, transportation, materials industry, real estate, and other (forestry) fields after referencing documents such as the Climaterelated Disclosure Standards*1 by the International Sustainability Standards Board (ISSB), the World Energy Outlook 2022 and Energy Technology Perspectives 2023 by the International Energy Agency (IEA),
and the Inevitable Policy Response 2021 by the Principles for Responsible Investment (PRI), and referencing and confirming trends in technological changes and the introduction of regulations.
*1 We referred to the standards released on June 26, 2023.

Business sectors selected for scenario analysis
 Energy ： Thermal power generation (coal, gas), Renewable energy power generation, Next

Scenario analysis scope

generation energy （ hydrogen, ammonia, synthetic fuels, energy management, storage battery, CCUS）

Business scale Resources ：Thermal coal and coking coal, Iron ore, Natural gas and LNG, Metals and rare metals(nickel, copper)
 Transportation: Vehicles (automobile parts manufacturing & sales/finished vehicles sales business),
Shipping (shipbuilding business/ship trading business/ship owning business), Aviation (leasebusiness/parts manufacturing) Material industry sector: Steel (steel products & tubular products manufacturing & sales business),
Cement (distribution business), Chemicals (manufacturing/trade business), Aluminum (smelting
business) Real estate sector: Office buildings/residential building sales business

Impact of change in business environment related to climatechange mitigation

 Other: Forestry▌ Results of Scenario Analysis

 For the trends in supply and demand changes related to the sectors identified for scenario analysis, energy, resources, transportation, materials industry, real estate, , and other (forestry), the future market trends
for each sector listed in the main scenarios presented by the IEA are evaluated on five levels for 2030 and 2050: “sharp increase to increase”, “increase to moderate increase”, “neutral”, “moderate decrease to
decrease” and “decrease to sharp decrease”. The forecasts for demand trends and the business environment shown by these scenarios include many potential risks and uncertainties.
 Our business environment, policies and initiatives related to each sector describe the policies and initiatives that consider the factors and certainty of various changes in the business environment shown in thesescenarios and the circumstances unique to our business. Furthermore, we are working on the development of thermal power generation and fossil energy concession businesses with the aim of achieving carbon
neutrality by 2050. Also provided are quantitative indicators, including our profit levels and exposure*2, for power generation (coal), thermal coal, and natural gas and LNG, which include these businesses.
 After performing scenario analysis, we have confirmed the resilience of our businesses because we are able to respond to any of the three scenarios for 2030 and 2050. Examples of the main businessenvironments for each scenario are detailed on the next page together with a summary of our policies and initiatives.

Common[Display of referenced scenarios(macro environment)]

STEPS
APS
NZE

© 2023 Sumitomo Corporation

Trends of Supply and Demand Changes in Referenced Scenario (Macro Environment)：Significant increase toincrease：Slightly decrease
to decrease：Increase to
Slightly increase：NeutralQuantitative indicator

XXX：XX billion yen：Decreaseto Significant decrease*2 consolidated total assets and guarantee for investments accounting for using the equity method

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ESG
Quantitative
Data

External
Recognition

Our Climate Change Initiatives: Disclosure Based on TCFD Recommendations▌ Results of Scenario Analysis (Summary)
Sector

Referenced scenarios(Macro Environment)

2030

Business

2050

Thermal power generation (coal)
Thermal power generation (gas)Renewable energy power generation
EnergyNext generationenergyHydrogen, ammonia,
synthetic fuels
Storage battery, energy
management
CCUS

Thermal coal
Coking coal
Resources

Iron ore
Natural gas and LNG
NickelCopper

VehiclesTransportati
Shippingon
Aviation
Material
industry
sectorSteel

Principles andPolicies

IBC
Stakeholder
Capitalism
Metrics

Trends of Supply and Demand Changes in Referenced Scenario(Macro Environment)：Significant increase toincrease：Increase to
Slightly increase：Slightly decrease
to decrease：Decreaseto Significant decrease：NeutralThe business environment for our business is positioned as neutral or increase for about 90% of the entire businessin the year 2050 under NZE/APS/STEPS. In addition, we recognize that future supply and demand forecasts for themarkets related to our businesses are generally stable or growing. Based on this, we have confirmed that we are
steadily advancing our Portfolio SHIFT by identifying and responding to our business risks and opportunities. Below
are the main policies and initiatives of our business with “sharp increase to increase” and “decrease to sharp
decrease” in supply and demand change trends for the referenced scenarios (see the next page onward for details).
[Trends in Supply and Demand Changes in Reference Scenario: Businesses Indicated as "decrease to sharp
decrease"]• Thermal power generation (coal and gas): Rather than being involved in any new coal-fired power generation
businesses, neither IPP (Independent Power Producer) nor EPC (Engineering, Procurement, Construction), ourpolicy is to shift the allocation of management resources to power generation businesses with low environmental
impact, such as renewable energy. Most of the existing thermal power generation businesses are based on longterm contracts with governments of host countries, thus the risk of a significant deterioration in the commercial
viability of individual projects is not considered high, but we will continue to monitor changes in the businessenvironment.
[Trends in Supply and Demand Changes in Reference Scenario: Businesses Indicated as "sharp increase toincrease"]• Renewable energy power generation: The Sumitomo Corporation Group is engaged in various renewable energy
businesses such as wind, solar, geothermal, hydroelectric, and biomass. We aim to expand the scale of ourrenewable energy supply, on the basis of net generation capacity, from the current 1.8 GW to 5 GW or more by2030.
• Next generation energy: We will promote the development of businesses related to carbon-free energy such as

Steel sheets
Tubular products

CementChemicals
Aluminum

Real estate
sectorOffice buildings / residential building sales
business

Other

Forestry© 2023 Sumitomo Corporation*

Our business environment,
policies and initiatives

Commitment
to External
Initiatives

hydrogen, ammonia, and synthetic fuels for which demand is expected to grow in the future, and work to expand
earnings. In our storage battery and energy management businesses, we are promoting the utilization of renewableenergy, car sharing to help reduce CO2 emissions, and various businesses that contribute to reuse of storage
batteries. In terms of CCUS, we are driving new business creation and development in response to increasingneeds in energy, materials, and other sectors.

• .Vehicles: Seeing the spread of EVs and trend toward MaaS, we are working on seizing a new business opportunity

such as deployment of parking business with EV charging stations.

• Shipping/Aviation: We are promoting the development and introduction of ships and aircraft aimed at improving fuelefficiency and utilizing decarbonized and low-carbon fuels.

In addition, we are not only promoting existing businesses but also working to create new businesses in thebusinesses indicated as “neutral”, “increase to moderate increase”, or “moderate decrease to decrease". We see
increasing value in sustainable forest management and timber supply, so we are working to expand our forestry
business. Regarding the thermal coal and coking coal business, tubular products business, and real estate business,
all of which have differing trends in supply and demand changes around 2030 in the transition toward 2050, we willcontinue to closely monitor market trends and other factors while steadily advancing our portfolio shift.
36* No 2050 trend for iron ore because of insufficient data for the scenario

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Sustainability of
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Group

FeatureEnvironment
Environment

SocialGovernance

Our Climate Change Initiatives:
Disclosure Based on TCFD Recommendations

ESG
Quantitative
Data

Common
STEPS♦ Energy sector： Thermal power generation(coal・gas)

NZE

Referenced scenarios(Macro environment: changes in thermal power generation(coal・gas) output)

2030

2050

CommonCoal-fired power generation will gradually be phased out in developed countries

STEPS

Coal-fired power generation
declines by approx. 11%(impact of regulatory policies in eachcountry)

and decreases by approx. 42% by 2050

APS

Coal-fired power generation
declines by approx. 21%(approx. 50% of investment is
CCUS-related)and decreases by approx. 75% by 2050
(18% is CCUS-related)

NZE

Coal-fired power generation
declines by approx. 54%(zero new coal-fired power
generation development)

and decreases by approx. 92% by 2050
Only facilities equipped with CCUS (approx. 200 GW)

2030

Common
STEPS
APS
NZE

Starting in developed countries,
gas-fired power generation output
gradually declines
Gas-fired power generation
increases by approx. 5%
Gas-fired power generation
declines by approx. 6%
Gas-fired power generation
declines by approx. 23%(approx. 18 GW of gas-fired power
generation equipped with CCUS)© 2023 Sumitomo Corporation

Trends of Supply and Demand Changes in Referenced Scenario(Macro Environment)

APS：Significant increase toincrease：Slightly decrease
to decrease：Increase to
Slightly increase：Decreaseto Significant decrease：NeutralOur Applicable Businesses
Thermal power generation (coal and gas) businesses
External Environment, Risks and Opportunities
Regarding coal-fired power generation, there is a gradual decline starting in developed countries and in all scenarios,
there is a significant decline by 2040 or 2050. While gas-fired power generation as a percentage of total power
generation will decline over the medium to long term, we expect that investigations will continue into reducing CO2
emissions through the use of hydrogen, CCUS, and other new technologies. However, to advance the energy
transition, we expect gas to remain an important power generation source because, from the perspective of stabilityof power supply, a certain level of gas-fired power generation will be required. Under the STEPS scenario to the left,
gas-fired power generation output is forecast to increase, albeit slightly, even in 2050.
Our Policies, Strategies, and Initiatives

Thermal power generation(gas)2021

Principles andPolicies

IBC
Stakeholder
Capitalism
Metrics

Our business environment, policies and initiatives

Thermal power generation(coal)

2021

External
Recognition[Display of referenced scenarios(macro environment)]▌ Strategy: Transition Risks and Opportunities Related to Climate Change〈Scenario Analysis〉

Commitment
to External
Initiatives

2050

Gap in demand increase/decrease widens between
scenarios
and increases by approx. 3% by 2050
declining by approx. 40% by 2050
declining by approx. more than 91% by 2050
130 GW of gas-fired power generation equipped withCCUS

We will shift our allocation of management resources from thermal power to power generation businesses with low
environmental impact, such as renewable energy. In terms of coal-fired power, we will not be involved in any new
power generation businesses, neither IPP (Independent Power Producer) nor EPC (Engineering, Procurement,
Construction). Furthermore, we plan to finalize all of our businesses and withdraw from the coal-fired power
generation business in the late 2040s*1. We believe that gas-fired power generation is an important power generation
method that will play a bridging role in the energy transition, and a dispatchable power supply role to support power
supplies as renewable energy power generation spreads. We also have high expectations, and are implementing
initiatives, for innovative low-carbon technologies, including the use of green hydrogen, to help to achieve carbon
neutrality. While contemplating the development of local communities and economies and our obligation to supply
electric power as stabilized power supply, we will pursue various options, without eliminating the possibility ofaccelerated withdrawal from the business to realize decarbonization of our company and society as a whole. And wewill pursue the decarbonization and low-carbonization of existing facilities and providing maximum support for hostcountries to shift power sources to renewable energy and other sources. We are utilizing our extensive know-how in
power generation businesses to deliver high-efficiency, high-quality power supplies with outstanding environmental
performance in countries around the world.
Coal-fired power generation business

As of Mar. 31, 2023

Estimate for 2035

Latter half ofthe 2040s

Outstanding investments, loans and guarantees *2

310 billion yen

150 billion yen

Zero

Net ownership generation capacity

5.2GW

About 2GW

Zero

*1 Regarding coal-fired power generation, we aim to reduce CO2 emissions by 60% or more by 2035 (compared to 2019) and will end all the coal-fired power generation business in the late 2040s.
*2 Includes all outstanding balances of investments, loans, and guarantees (assumed amount at the peak for a project before completion) for all coal-fired power generation projects,
regardless of investment scheme or contract type. Calculations are based on the exchange rate at the end of March 2023 <YEN/US$>; 133.5 yen.

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SocialGovernance

Our Climate Change Initiatives:
Disclosure Based on TCFD Recommendations

CommonAPS
NZE

 Energy sector: Renewable energy power generation
Referenced scenarios(Macro environment: changes in renewable energy power generation output)
2030

STEPS

Commitment
to External
Initiatives

External
Recognition[Display of referenced scenarios(macro environment)]▌ Strategy: Transition Risks and Opportunities Related to Climate Change〈Scenario Analysis〉

2021

ESG
Quantitative
Data

Principles andPolicies

IBC
Stakeholder
Capitalism
Metrics

Trends of Supply and Demand Changes in Referenced Scenario(Macro Environment)：Significant increase toincrease：Slightly decrease
to decrease：Increase to
Slightly increase：Decreaseto Significant decrease：NeutralOur business environment, policies and initiatives
2050

Our Business
Renewable energy power generation
External environment, risks and opportunities

CommonIncreasing global trend toward carbon neutrality accelerates the use of renewableenergy as a main source of power in many countries
Power generation fromrenewable energy sources
increases by approx. 87%(50% greater investment inclean energy)

Approx. fourfold by 2050. As a result, the ratioof renewable energy sources in power
generation reaches approx. 65%

APSPower generation fromrenewable energy sources
increases by approx. 118%
(doubled investment in clean
energy)Approx. sixfold by 2050. As a result, the ratioof renewable energy sources in power
generation reaches approx. 80%

NZE

Power generation fromrenewable energy sources
increases by approx. 186%
(increased investment inclean energy by 3 times)

Approx. eightfold increase by 2050. As aresult, the ratio of renewable energy sourcesin power generation reaches approx. 88%

STEPSWith an increasing trend toward carbon neutrality, the use of renewable energy as amain source of power is accelerating around the world. In addition to renewable energy
such as solar, wind, and geothermal power generation, the demand for renewableenergy to produce green hydrogen is also increasing. In each of the scenarios to theleft, renewable energy power generation output increases dramatically by 2050, while it
is forecast to increase roughly eightfold from the current output in the NZE scenario.
Our Policies, Strategies and Initiatives* If the rate of change exceeds 100%, the change is expressed as the increased amount only.
For instance, a 120% rate of change is expressed as an increase of 20%.

To overcome the issue of climate change and bring about a carbon neutral society, theSumitomo Corporation Group is engaged in various renewable energy businesses suchas wind, solar, geothermal, hydroelectric, and biomass. While providing the stablesupply of energy essential for the development of economies and industries in local
societies, we are putting forward a policy of continuing to shift management resources
to a power generation portfolio with low environmental impact, such as renewableenergy. We also aim to achieve net generation capacity of 5 GW or more for renewableenergy by 2030. In addition to growing our solar and wind power generation businesses,
we are also promoting hydroelectric power generation businesses in Southeast Asia,
where there is an abundance of water resources, and we are promoting operation anddevelopment of geothermal power generation businesses in Indonesia, a country withthe world’s second-largest reserves of geothermal resources.

Please see here for more details on Biomass energy development business.
© 2023 Sumitomo Corporation

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FeatureEnvironment
Environment

SocialGovernance

Our Climate Change Initiatives:
Disclosure Based on TCFD Recommendations

ESG
Quantitative
Data

External
Recognition[Display of referenced scenarios(macro environment)]

Common▌ Strategy: Transition Risks and Opportunities Related to Climate Change〈Scenario Analysis〉

STEPS Energy sector: Next generation energy （Hydrogen・ammonia・synthetic fuels）

NZE

Referenced scenarios (Macro environment: changes in hydrogen and ammonia supplies）

APS

Commitment
to External
Initiatives

Principles andPolicies

IBC
Stakeholder
Capitalism
Metrics

Trends of Supply and Demand Changes in Referenced Scenario(Macro Environment)：Significant increase toincrease：Slightly decrease
to decrease：Increase to
Slightly increase：Decreaseto Significant decrease：NeutralOur business environment, policies and initiatives
Our Business
Carbon-free energy (hydrogen, ammonia, synthetic fuels, etc.) development businesses

2030

2021

2050

External environment, risks and opportunities
Demand for next-generation energies as fossil fuel alternatives that contribute toCommonHydrogen is positioned as a top environmental policy mainly in developed
countries

STEPS

Hydrogen production increases to
1 EJ* (ammonia supply is zero)

Hydrogen, etc. supplies increase to 3 EJ
(ammonia supply is zero)

APS

Hydrogen production increases to
4.0 EJ (ammonia supply is zero)

Hydrogen, etc. supplies increase to 32EJ
ammonia supply increases to 2.0 EJ

NZE

Hydrogen production increases
Hydrogen production increases to 68 EJ,
to 18EJ, ammonia supply increases
ammonia supply increases to 3 EJ by 2050
to 1.0 EJ※ Hydrogen, etc. supplies include hydrogen and ammonia supplies, and low-carbon hydrogen,ammonia, and synthetic fuels, in the electricity and heating sector.
1 EJ (1018 joules) is equivalent to the heat value of approximately 25.8 million kL of crude oil.
（EJ：Exajoules）© 2023 Sumitomo Corporation

reduced lifecycle CO2 is increasing. In IEA’s NZE scenario, investment in hydrogen,ammonia, synthetic fuels and other alternatives increases tenfold or more from thecurrent value by 2030. On the supply side, in areas where natural gas and renewableenergy are rich and available, global investment plans are already in place fordevelopment of hydrogen and ammonia plants. On the demand side, governments in
Europe, Japan and Asia are formulating plans to use hydrogen and ammonia to realize
decarbonization in industry. Government support frameworks, technology development,
and social acceptance are essential to establish successful business.
Our Policies, Strategies and Initiatives
In FY2021, we launched the Energy Innovation Initiative to promote the development ofbusinesses related to hydrogen, ammonia, synthetic fuels, and other next-generationenergies as an important focus area. We aim to expand our earnings while realizing adecarbonized society through the stable supply of next-generation energies. We willbuild supply chains based on optimal technologies, cost, and timeframes while
supplementing functions and sharing risks with partner alliances andconsortia, including investing in related infrastructure and technologies, to ensure ourbusinesses have a competitive edge.

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Sustainability of
Sumitomo Corporation
Group

FeatureEnvironment
Environment

SocialGovernance

Our Climate Change Initiatives:
Disclosure Based on TCFD Recommendations

ESG
Quantitative
Data

External
Recognition[Display of referenced scenarios(macro environment)]

Common▌ Strategy: Transition Risks and Opportunities Related to Climate Change〈Scenario Analysis〉

STEPS Energy sector: Next generation energy (Energy management businesses and storage battery)

NZE

Referenced scenarios(Macro environment: changes in stationary storage battery production capacity）

Commitment
to External
Initiatives

APS

Principles andPolicies

IBC
Stakeholder
Capitalism
Metrics

Trends of Supply and Demand Changes in Referenced Scenario(Macro Environment)：Significant increase toincrease：Slightly decrease
to decrease：Increase to
Slightly increase：Decreaseto Significant decrease：NeutralOur business environment, policies and initiatives
Our Business

2030

2021

2050

Storage battery and energy management businesses, etc.
External environment, risks and opportunities

CommonNZE

Battery prices decline through technological innovation and increased production scale
Storage battery production capacity increases rapidly to ensure power system flexibility
Annual production capacity
for stationary storage
batteries increases toapprox. 80 GW

If current government targets and policies around the world are promoted, electric vehicles willapparently reach market share of 35% globally, and 50% or higher in the major markets of theUnited States, China, and Europe, in 2030. With an increase in renewable energy, there will be amuch greater need for storage batteries that have high energy and storage efficiency, so from

Annual production capacity for stationary storage
batteries increases to approx. 300 GW

the perspective of energy management as well, the market is forecast to expand. In line with this,European battery regulations are moving to require storage battery recycling, carbon footprint
disclosure, and traceability. In addition, with an uneven geographical distribution of mining for thecritical mineral resources used in batteries, there is a risk that increased prices for cobalt, lithium,and nickel will cause the price of storage batteries to increase.
Our Policies, Strategies and Initiatives
To secure stability of power networks, which is a major challenge for greater spread of renewableenergy, we are commercializing new energy management technologies that use storage
batteries. As another key to mitigating climate change, we are also promoting businesses that
reduce energy consumption and utilize renewable energy on the energy demand side, such as
the car sharing business. Specifically, we collaborated with an automaker to establish 4R Energy
Corporation in 2010 to focus on reuse of EV batteries. As a result, we have realized systems forreusing batteries, which is much more effective at reducing CO2 emissions than using newbatteries. By developing businesses ourselves, we can conduct strict cost management andimprove revenues from our electricity service businesses. In this way, we are strategicallyensuring commercial viability of those businesses and promoting trials of new ideas in society.
Going forward, we will also consider contributing to the creation of recycling models for storage
battery dismantling and resource reuse with a view to further utilization of vehicle storage
batteries around the world.

© 2023 Sumitomo Corporation

Please see here for more details on Large-scale energy storage business.

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Sumitomo Corporation
Group

FeatureEnvironment
Environment

SocialGovernance

Our Climate Change Initiatives:
Disclosure Based on TCFD Recommendations

ESG
Quantitative
Data

CommonSTEPS Energy sector: Next generation energy (CCUS)

NZE

Referenced scenarios(Macro environment: changes in CO2 absorption through introduction of CCUS）
2030

2021

External
Recognition[Display of referenced scenarios(macro environment)]▌ Strategy: Transition Risks and Opportunities Related to Climate Change〈Scenario Analysis〉

2050

Commitment
to External
Initiatives

Principles andPolicies

IBC
Stakeholder
Capitalism
Metrics

Trends of Supply and Demand Changes in Referenced Scenario(Macro Environment)

APS：Significant increase toincrease：Slightly decrease
to decrease：Increase to
Slightly increase：Decreaseto Significant decrease：NeutralOur business environment, policies and initiatives
Our Business
CCUS * adoption business
External environment, risks and opportunities

Common
STEPS
APS

NZE

CCUS technology development advances, and CO2 reduction increases fromthermal power generation and heavy industry sources
CO2 reduction increases to 0.1 Gt

CO2 reduction increases to 0.4 Gt

CO2 reduction increases
to 0.5 Gt

CO2 reduction increases to 4.3 Gt（approx. 20% of coal-fired power plants areequipped with CCUS）

CO2 reduction increases
to 1.2 Gt

CO2 reduction increases to 6.2 Gt（approx. 90% of coal-fired power plants areequipped with CCUS）

CCUS is a new technology, so the spread of the technology is limited at present. However,treaties for the import/export of CO2 are being reviewed around the world, with a range of
support in Europe, the United States, and other developed countries including subsidies and tax
deductions, resulting in increased investment. In the NZE scenario, a high need for CO2 capture
is forecast for 2030 due to new construction and refurbishment of hydrogen manufacturing
equipment, coal-, gas-, and biomass-fired power plants, and cement, steel, chemicals and otherindustrial facilities. Thus, CCUS adoption globally is forecast to increase. On the other hand,unlike the referenced scenarios, if there is a global softening of CO2 reduction initiatives,potential risks include shrinking markets, cessation of subsidy schemes, and increasing costs
associated with capital investment.
Our Policies, Strategies and Initiatives
The existence or otherwise of subsidy schemes in the future will greatly impact the economic
efficiency of the business and the feasibility of establishing it. Therefore, in countries and regionsthat are already starting to develop frameworks for subsidies, we aim to actively utilize thoseframeworks, participate in projects at an early stage, and build up a track record. On the other
hand, in countries and regions that are establishing carbon emission targets and considering
related policies, we aim to develop market environments, and create projects from a superior
position, by collaborating with governments and being involved in the establishment of legislative
systems as much as possible. In the area of CO2 capture, which is forecast to see more•

Carbon Capture, Utilization and Storage: Technologies for sequestration and effective utilization of highconcentration CO2 emitted from industrial activities, and direct air capture technologies for capturing CO2
directly from the atmosphere© 2023 Sumitomo Corporation

technical innovation going forward, we will identify competitive technologies and use them
optimally to create new businesses. Recently, we invested in the direct air capture (DAC)
technologies of Global Thermostat, and we are developing businesses together.
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Sustainability of
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Group

FeatureEnvironment
Environment

SocialGovernance

Our Climate Change Initiatives:
Disclosure Based on TCFD Recommendations

ESG
Quantitative
Data[Display of referenced scenarios(macro environment)]

Common▌ Strategy: Transition Risks and Opportunities Related to Climate Change〈Scenario Analysis〉

STEPS

 Resources sector: Thermal coal

NZE

Referenced scenarios (Macro environment: changes in thermal coal production）
2030

2021

Common

2050

Thermal coal supplies decline as regulations around fossil fuel-based power
generation tighten globally

STEPS

Thermal coal production declines
by approx. 12%

and by approx. 35% by 2050

APS

Thermal coal production declines
by approx. 22%

and by approx. 74% by 2050

NZE

Thermal coal production declines
by approx. 50%

and by approx. 91% by 2050

External
Recognition

APS

Commitment
to External
Initiatives

Principles andPolicies

IBC
Stakeholder
Capitalism
Metrics

Trends of Supply and Demand Changes in Referenced Scenario(Macro Environment)：Significant increase toincrease：Slightly decrease
to decrease：Increase to
Slightly increase：Decreaseto Significant decrease：NeutralOur business environment, policies and initiatives
Our Business
Upstream
External environment, risks and opportunities
The energy policies of many countries, especially developed countries,
include plans to shift from coal-fired power generation to gas-fired power
generation and then renewable energy, so demand for the thermal coal usedin coal-fired power generation is forecast to decline.
Our Policies, Strategies and Initiatives
We will not acquire new interests in the thermal coal mine development, andwe plan to aim for zero equity production volume from thermal coal mines by2030. The weight of thermal coal interests in our resource portfolio isrelatively small. Going forward, mines of currently owned interests arescheduled to reach the end of their mine life in the near future. Also, theconcession produces high-grade coal, which is in relatively high demand, andis cost-competitive, making it resistant to price declines even when there is adrop in demand.
As of March 31, 2023 Thermal / coking coal Exposure: 120 billion yen© 2023 Sumitomo Corporation

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FeatureEnvironment
Environment

SocialGovernance

Our Climate Change Initiatives:
Disclosure Based on TCFD Recommendations

ESG
Quantitative
Data[Display of referenced scenarios(macro environment)]

Common▌ Strategy: Transition Risks and Opportunities Related to Climate Change〈Scenario Analysis〉

STEPS

 Resources sector: Coking coal

NZE

Referenced scenarios (Macro environment: changes in coking coal production）
2030

2021

Common2050

Coking coal supplies decline as regulations around use of coal tighten
and low-carbon technologies are adopted in steel production

STEPS

Coking coal production
declines by approx. 9%and by approx. 29% by 2050

APS

Coking coal production
declines by approx. 17%

and by approx. 63% by 2050

NZE

Coking coal production
declines by approx. 30%.
Iron ore production
remains stable

The shift to hydrogen reductioniron manufacturing and use ofelectric furnaces in steel
production advances, anddemand for coking coal declines
by approx. 88% by 2050

External
Recognition

APS

Commitment
to External
Initiatives

Principles andPolicies

IBC
Stakeholder
Capitalism
Metrics

Trends of Supply and Demand Changes in Referenced Scenario(Macro Environment)：Significant increase toincrease：Slightly decrease
to decrease：Increase to
Slightly increase：Decreaseto Significant decrease：NeutralOur business environment, policies and initiatives
Our Business
Upstream
External environment, risks and opportunities
In the long term, many countries and regions will develop policies for
adopting or strengthening carbon taxes, so demand for coking coal isforecast to decline as low-carbon iron-making processes with fewer CO2
emissions are put to practical use and the ratio of electric furnace use
increases.
Our Policies, Strategies and Initiatives
In combination with CCUS and other CO2 capture and storage technologies,
it is predicted that steel businesses that use blast furnaces will be preserved
for the time being. In addition, we believe that a certain level of demand will
be maintained for the interests we hold as they produce hard coking coal,
which is considered rare among coking coals.

As of March 31, 2023 Thermal / coking coal Exposure: 120 billion yen© 2023 Sumitomo Corporation

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Group

FeatureEnvironment
Environment

SocialGovernance

Our Climate Change Initiatives:
Disclosure Based on TCFD Recommendations

ESG
Quantitative
Data[Display of referenced scenarios(macro environment)]

Common▌ Strategy: Transition Risks and Opportunities Related to Climate Change〈Scenario Analysis〉

STEPS

 Resources sector: Iron ore

NZE

NZE

2030

Iron ore production remains
stable to 2026, at between
approx. 2,490 and 2,500
Mt/year* No 2050 trend for iron ore because of insufficient data for the scenario※

APS

Principles andPolicies

IBC
Stakeholder
Capitalism
Metrics

Trends of Supply and Demand Changes in Referenced Scenario(Macro Environment)：Significant increase toincrease：Slightly decrease
to decrease：Increase to
Slightly increase：Decreaseto Significant decrease：NeutralOur business environment, policies and initiatives

Referenced scenarios (Macro environment: changes in iron ore production）
2021

External
Recognition

Commitment
to External
Initiatives

2050

Our Business
Upstream
External environment, risks and opportunities
Despite a forecast gradual increase in global demand for steel, an increase in
the ratio of electric furnace steel as a result of moves toward decarbonization
may lead to a portion of raw materials being replaced with steel scrap and a
decline in demand for iron ore. On the other hand, demand and production of
direct reduced iron is forecast to increase as a way to reduce CO2 emissions
in both the blast furnace method and the electric furnace method, so demand
for the high-grade iron ore used as raw materials for direct reduced iron may
increase.
Our Policies, Strategies and Initiatives
Regarding our iron ore-related businesses, through our projects in South
African and Brazilian mines, we contribute to stable supply of resources toAsia, with a focus on China and Japan. We will continue to take actions forstable supply while paying close attention to the impact on demand due tochanges in the iron-making and steel-making methods in response todecarbonization in the steel industry, and also to the impact of an increase in
the ratio of electric furnace steel.

© 2023 Sumitomo Corporation

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Group

FeatureEnvironment
Environment

SocialGovernance

Our Climate Change Initiatives:
Disclosure Based on TCFD Recommendations

ESG
Quantitative
Data[Display of referenced scenarios(macro environment)]

Common▌ Strategy: Transition Risks and Opportunities Related to Climate Change〈Scenario Analysis〉

STEPS

 Resources sector: Natural gas and LNG

NZE

Referenced scenarios (Macro environment: changes in natural gas demand）
2030

2021

Common2050

Gap in demand widens between the scenarios, with different increases ordecreases depending on the country of region

STEPS

Natural gas demand increases
approx. 4%

and increases by approx. 3% by 2050

APS

Natural gas demand declines byapprox. 8%

and declines by approx. 37% by 2050

NZE

Natural gas demand declines byapprox. 22%

and declines by approx. 72% by 2050

External
Recognition

APS

Commitment
to External
Initiatives

Principles andPolicies

IBC
Stakeholder
Capitalism
Metrics

Trends of Supply and Demand Changes in Referenced Scenario(Macro Environment)：Significant increase toincrease：Slightly decrease
to decrease：Increase to
Slightly increase：Decreaseto Significant decrease：NeutralOur business environment, policies and initiatives
Our Business
Upstream, midstream and downstream, trading
External environment, risks and opportunities
Despite a significant gap in demand increase/decrease between each of the scenarios,
natural gas will be used as an alternative power fuel for coal in the transition phase to a
low-carbon society. In addition, it will continue to play an important role as a raw material
for petrochemical products, ammonia, and fuel for transportation.
In the short to medium term in particular, demand is forecast to increase in the ASEAN
nations, and it is expected that business opportunities will increase in the Asian Pacific(including India) and China. The main supply-side countries and regions for LNG in the
future may be the Middle East and United States and, with the impact of the conflict
between Russia and Ukraine, LNG trade opportunities with demand-side countries andregions may increase.
In the long term, the spread of renewable energy will offset increased demand in
emerging countries, so demand is forecast to trend downward. However, a certain level ofdemand for natural gas is forecast to remain in some countries and regions where theuse of renewable energy is not suitable, so natural gas will continue to play an importantrole in the best mix of renewable energy, such as a balancing function when renewableenergy is not available.

Our Policies, Strategies and Initiatives
We will focus on strategic regions from the medium to long-term perspective, and we will
work to maximize opportunities by creating a natural gas and LNG value chain in
combination with upstream LNG projects, LNG trading, and midstream and downstream
businesses. Furthermore, we will contribute to the stable supply of energy to theappropriate countries and regions while securing demand for transition fuels while
introducing environmental technologies such as CCS/CCUS and promoting the best mixof renewable energy sources.

As of March 31, 2023 Gas, LNG Exposure: 50 billion yen© 2023 Sumitomo Corporation

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FeatureEnvironment
Environment

SocialGovernance

Our Climate Change Initiatives:
Disclosure Based on TCFD Recommendations

ESG
Quantitative
Data[Display of referenced scenarios(macro environment)]

Common▌ Strategy: Transition Risks and Opportunities Related to Climate Change〈Scenario Analysis〉

STEPS

 Resources sector: Nickel

NZE

2030

CommonNZE

2050

Demand increases for nickel, which is essential for clean energy and production of EVs
Nickel demand increases by approx.
100%

APS

Principles andPolicies

IBC
Stakeholder
Capitalism
Metrics

Trends of Supply and Demand Changes in Referenced Scenario(Macro Environment)：Significant increase toincrease：Slightly decrease
to decrease：Increase to
Slightly increase：Decreaseto Significant decrease：NeutralOur business environment, policies and initiatives

Referenced scenarios (Macro environment: changes in nickel demand）
2021

External
Recognition

Commitment
to External
Initiatives

and increases by approx. 110% by 2050

Our Business
Upstream
External environment, risks and opportunities
With the spread of renewable energy, EVs, and storage batteries, which are essential in the expansionof low-carbonization and decarbonization, demand for the nickel used in rechargeable batteries isforecast to increase dramatically in the medium to long term.
Our Policies, Strategies and Initiatives
We are proceeding with projects as a producer in the Republic of Madagascar. We sell the products toJapan, Europe, North America, and Asia, and we are aiming to create further business opportunities.
While continuing to conserve biodiversity, including reforestation of quarries, and conserve theenvironment surrounding mines and plant sites, we will also continue to find and implement CO2
emission reduction measures, and work to stabilize production and increase production volumes.

 Resources sector: Copper
Our business environment, policies and initiatives

Referenced scenarios (Macro environment: changes in copper demand）
2030

2021

CommonNZE

2050

Demand increases for copper, which is essential for clean energy and production of EVs
Copper demand increases by 46%

and increases by approx. 67% by 2050

Our Business
Upstream
External environment, risks and opportunities
With the spread of renewable energy and EVs, demand for copper is forecast to increase in themedium to long term. On the other hand, increasing supplies is forecast to be difficult due toincreasing risks and difficulty of operating newly developed mines, and impacts of things like atightening of environmental protection regulations.
Our Policies, Strategies and Initiatives
We will continue to contribute to stable procurement of copper products by acquiring newconcessions and expanding production at existing concessions through investment in copper mines
overseas, and by strengthening our operations on the copper production value chain. These include
our upstream copper concentrate production business and midstream copper bullion production andsales business. We will also continue working to conserve the environment around our mines.

© 2023 Sumitomo Corporation

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Group

FeatureEnvironment
Environment

SocialGovernance

Our Climate Change Initiatives:
Disclosure Based on TCFD Recommendations

ESG
Quantitative
Data

External
Recognition[Display of referenced scenarios(macro environment)]

Common▌ Strategy: Transition Risks and Opportunities Related to Climate Change〈Scenario Analysis〉

STEPS

 Transportation sector: Vehicles

NZE

Referenced scenarios(Macro environment: Changes in Sales of passenger vehicles and EVs’ share)

APS

Commitment
to External
Initiatives

Principles andPolicies

IBC
Stakeholder
Capitalism
Metrics

Trends of Supply and Demand Changes in Referenced Scenario(Macro Environment)：Significant increase toincrease：Slightly decrease
to decrease：Increase to
Slightly increase：Decreaseto Significant decrease：NeutralOur business environment, policies and initiatives
Our Business
Sales of automobiles, manufacture and sales of automobile components, automobile

2030

2021

2050

finance, automobile leasing, car sharing, parking lot operation, etc.
External environment, risks and opportunities

CommonIn developed countries, sales of internal combustion engine vehicles decline
and the shift toward EVs accelerates between 2030 and 2040

Sales of passenger cars are forecast to increase, especially in emerging countries,
and the ratio of EV sales in new car sales are forecast to increase in all the scenarios
as fuel efficiency regulations tighten. In terms of automobile components, demand for

STEPS

APS

Ratio of EV in new vehicle sales
increases to approx. 25% fromthe current 9%

internal combustion engine parts expected to decline with the spread of EVs, but
demand for tires is expected to increase with the associated increase in automobile
body weight. If car prices increase as a result of the introduction of carbon tax and soon, there is a risk that new car sales will decline. At the same time, however, demand

Ratio of EV in new vehicle sales
increases to approx. 35%

for automobile finance and leasing businesses is forecast to increase.
Our Policies, Strategies and Initiatives

NZE

Ratio of EV in new vehicle
sales increases to approx.
60%, and passenger
vehicle sales increases byapprox. 25%

In addition to manufacturing and selling automobiles and automobile components, we
Ratio of EV in new vehicle sales
increases to approx. 100%are engaged in a wide range of businesses in the MaaS field. We see the spread of
EVs and developments in MaaS as business opportunities. For example, as part of ourparking lot operation business in Northern Europe, we are expanding the charging
networks essential for the spread of EVs and the EV subscription services using ourparking lots, to secure new revenue stream. In Japan, we are working on new
business opportunities such as providing fleets of EVs for commuter use, workplacecharging facilities, and solar power generation services. Demand for internal
combustion engine parts is expected to decline with the spread of EVs, but weconsider ourselves to have a limited financial exposure as these parts account for lessthan a few percent of our parts manufacturing business. We are investigating andimplementing a range of initiatives, such as use of carbon-free energy and low-carbon
and carbon-free technology to contribute OEM’s supply chain carbon neutrality.

© 2023 Sumitomo Corporation

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Group

FeatureEnvironment
Environment

SocialGovernance

Our Climate Change Initiatives:
Disclosure Based on TCFD Recommendations

ESG
Quantitative
Data[Display of referenced scenarios(macro environment)]

Common▌ Strategy: Transition Risks and Opportunities Related to Climate Change〈Scenario Analysis〉

STEPS

 Transportation sector: Shipping

NZE

Referenced scenarios(Macro environment: Changes in shipping demand and the ratio of low-carbon fuelsin marine and aviation fuel consumption)
2019
2020

2030

Common2050

Shipping demand is expected to increase under the NZE scenario due to amodal shift and other factors. Fuel efficiency regulations will be tightened, andthe use of low-carbon fuels will accelerate

APS

Ratio of low-carbon fuels inmarine and aviation fuelconsumption remains only about
6%*1

NZE

Shipping demand will
increase by about 43% from2020. Ratio of low-carbon
fuels in ship/air fuelconsumption will increase toabout 17%*1

External
Recognition

Shipping demand increases by about
167% by 2050. The share of low-carbon
fuels in ship/aircraft fuel consumption will
increase to about 81%*1*1 Because the data has not been updated in the scenario, last year's ratings and figures are quoted.

APS

Commitment
to External
Initiatives

Principles andPolicies

IBC
Stakeholder
Capitalism
Metrics

Trends of Supply and Demand Changes in Referenced Scenario(Macro Environment)：Significant increase toincrease：Slightly decrease
to decrease：Increase to
Slightly increase：Decreaseto Significant decrease：NeutralOur business environment, policies and initiatives
Our Business
Shipbuilding, trading, ship owning and operation, sales of energy storage
systems for ships, etc.
External environment, risks and opportunities
Shipping demand is expected to increase steadily over the medium to longterm due to the development of modal shift and other factors. While the cost ofinvestment in low-carbon technologies and the cost of operation could bothincrease as a result of GHG emission regulations and taxes by IMO*2 andauthorities in each country, the need for zero-emission and low-emission
ships*3 and energy storage systems for ships are also forecasted to increase.
Our Policies, Strategies and Initiatives
While monitoring the legal regulations and markets in each country, as well as
trends in zero-emission and low-emission ships technologies and costs, we
are working to increase the ratio of low-emission ships in our shipbuilding
business product lineup and ship owning portfolio in expectation of future
adoption of regulations.
In addition, we will strengthen sales of energy storage systems for ships inJapan through a joint venture with Corvus Energy which boasts a high global
market share, as the systems expected to improve the fuel efficiency of large
ocean-going ships, and also to contribute to realize zero emissions for small
coastal ships. In this way, we will create new business opportunities forachieving decarbonization and low-carbonization in society.
*2 International Maritime Organization：International Maritime Organization*3 LNG-, methanol-, and ammonia-fueled ships, etc.

© 2023 Sumitomo Corporation

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Group

FeatureEnvironment
Environment

SocialGovernance

Our Climate Change Initiatives:
Disclosure Based on TCFD Recommendations

ESG
Quantitative
Data

External
Recognition[Display of referenced scenarios(macro environment)]

Common▌ Strategy: Transition Risks and Opportunities Related to Climate Change〈Scenario Analysis〉

STEPS

 Transportation sector: Aviation

NZE

APS

Commitment
to External
Initiatives

Principles andPolicies

IBC
Stakeholder
Capitalism
Metrics

Trends of Supply and Demand Changes in Referenced Scenario(Macro Environment)：Significant increase toincrease：Slightly decrease
to decrease：Increase to
Slightly increase：Decreaseto Significant decrease：NeutralReferenced scenarios (Macro environment: Changes in aviation demand and the ratio of
low-carbon fuels in marine and aviation fuel consumption)
Our business environment, policies and initiatives
Our Business

2019
2020

2030

Common

APS

NZE

2050

In SDS / NZE scenarios, while some consumers change behavior to
avoid air travel, demand for travel remains strong, driven by
economic growth in developing and emerging countries. In addition,
ICAO regulations are driving a shift to fuel-efficient aircraft andengines.
Ratio of low-carbon fuels inshipping/aviation fuelconsumption is approx. 6%*1
Aviation demand will increaseby about 88% from 2020. Lowcarbon fuels as a share ofship/aircraft fuel consumption
increases to about 17 %*1

Commercial aviation and engine leasing, manufacturing aircraft components, aircraft
part-out and recycling, carbon credit trading, etc.
External environment, risks and opportunities
Aviation demand is forecasted to increase over the medium to long term. There is a
shift toward fuel-efficient aircraft due to ICAO*2 and IATA*3 regulations, and the start of
the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA). At
the same time, fuel prices are expected to rise with increased adoption of SAF*4 andother low-carbon fuels and increased demand for carbon credits.
Our Policies, Strategies and Initiatives
In our mainstream commercial aviation and engine leasing businesses, we are working
to achieve sustainable revenue growth by replacing aircraft and engine portfolio with

Aviation demand increases by
about 166% by 2050. Ratio of
low-carbon fuels in ship/aircraft
fuel consumption will increase toabout 81 %*1*1 Because the data has not been updated in the scenario, last year's ratings and figures are quoted.

better fuel-efficient ones and capturing leasing demand for addition and replacement ofairline customers. We are also contributing to customer (airline) initiatives toward
decarbonization. By shifting our portfolio while monitoring market and technology
trends and legal legislations regarding aircraft fuel efficiency, we will respond flexibly
to changes in the business environment and manage the risk of decrease in leasing
fees and prices of our owned aircraft.
In 2022, we have entered the aircraft part-out and recycling business, dismantling andselling parts from retired aircraft. Our aim is to build a circular economy by effectively
utilizing limited resources and energy and reducing waste. In addition, we are striving*2 International Civil Aviation Organization

to capture business opportunities for a carbon neutral-oriented society by responding*3 International Air Transport Association

to strongly increasing demand for SAF and other biofuels through enhancing initiatives*4 Sustainable Aviation Fuel：Fuel made from plants and waste oilin the manufacture and supply of such SAF and other biofuels.
Please see here for more details on Aircraft aftermarket business (including the aircraft part-out and recycling business).

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FeatureEnvironment
Environment

SocialGovernance

Our Climate Change Initiatives:
Disclosure Based on TCFD Recommendations

ESG
Quantitative
Data[Display of referenced scenarios(macro environment)]

Common▌ Strategy: Transition Risks and Opportunities Related to Climate Change〈Scenario Analysis〉

STEPS Material industry sector: Steel

NZE

Referenced scenarios(Macro environment: Changes in steel production and oil and gas investment amount)

2030

2021

2050

Steel demand remains steady, and adoption of direct reduction steelmaking and CCUS
accelerates
Steel production increases by approx.
8%

NZE

APS

Principles andPolicies

IBC
Stakeholder
Capitalism
Metrics

Trends of Supply and Demand Changes in Referenced Scenario(Macro Environment)：Significant increase toincrease：Slightly decrease
to decrease：Increase to
Slightly increase：Decreaseto Significant decrease：NeutralOur business environment, policies and initiatives
Our Business
Processing and sales of steel sheets, tubular products, and other steel products.

Steel products

CommonExternal
Recognition

Commitment
to External
Initiatives

Increase of about 3%
through 2050

Tubular products (steel pipes)

2021

2030

2050

CommonOil and Natural gas demand trends and investment amount differ significantly among
scenarios

STEPS

Oil and gas investment amountincrease by about 96%*

Increase of about 109%
through 2050*

APS

Oil and Natural gas investment
amount increase by about 73%*

Increase of about 38% through 2050*

NZE

Oil and Natural gas investment
amount increase by about 11%*

Decreases about 48%* with zero new
development through 2050

External environment, risks and opportunities
Led by emerging countries, demand for steel products is forecast to increase. For
tubular products, demand trends and investment in oil and natural gas differ significantly
among scenarios, but tubular demand is expected to grow in the short term as oil andnatural gas investment increases in all scenarios. However, in the NZE scenario, oil andnatural gas investment is forecast to decline by approx. 48% through 2050.
If climate change becomes more serious and demands from society for decarbonization
increase, demand for some steel products with a high environmental impact will decline.
On the other hand, demand is expected to increase for steel products that utilize lowcarbon and decarbonization technologies, such as hydrogen direct reduction
steelmaking and CCUS. In addition, new infrastructure (manufacturing equipment,
storage facilities, etc.) and transportation methods will be introduced as green energy
spreads, which could lead to increase in demand for various steel products, Tubular
demand for other decarbonization, such as CCUS, and renewable energy development
is also expected to increase.
Our Policies, Strategies and Initiatives
Because our business operation does not include steel manufacturing processes, CO2
emissions are limited. For steel products, while steadily connecting the growth indemand from emerging countries to our earnings, we will develop new businesses incollaboration with leading customers and business partners, in fields such asengineering, ship building, and heavy industries, to capture the shift in demand to lowcarbon and carbon-free steelmaking.
For tubular products, in the NZE scenario, tubular demand in oil and natural gas
development will decline. On the other hand, as stated above, steel demand for carbon
reduction and decarbonization technologies is forecast to increase, so we will adjust our
portfolio to respond to this demand shift. In addition, we will promote energy transitionrelated business not only on our own but also with our strategic partners such as theintegrated energy companies and contribute to improving efficiency in oil and gas welldrilling operations to help reduction of CO2 emissions.

* Because the data has not been updated in the scenario, last year's ratings and values are quoted.
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Group

FeatureEnvironment
Environment

SocialGovernance

Our Climate Change Initiatives:
Disclosure Based on TCFD Recommendations

ESG
Quantitative
Data[Display of referenced scenarios(macro environment)]

Common▌ Strategy: Transition Risks and Opportunities Related to Climate Change〈Scenario Analysis〉

STEPS Material industry sector: Cement

NZE

2030

APS

Principles andPolicies

IBC
Stakeholder
Capitalism
Metrics

Trends of Supply and Demand Changes in Referenced Scenario(Macro Environment)：Significant increase toincrease：Slightly decrease
to decrease：Increase to
Slightly increase：Decreaseto Significant decrease：NeutralOur business environment, policies and initiatives

Referenced scenarios (Macro environment: changes in cement production）
2021

External
Recognition

Commitment
to External
Initiatives

2050

Our Business
Cement distribution businessCommonNZE

Cement production remains stable due to industrialization in developing countries
Cement production increases
by 1%

External environment, risks and opportunities
Global demand for cement is forecast to increase mainly due to urbanizationand industrialization in India and African countries, and increased adoption of
new infrastructure for green energy in developed countries in particular. If
moving toward climate change mitigation, focused measures to use more
efficient materials will reduce the rate of increase in cement demand, but
overall demand is forecast to remain stable.
There are risks of increased costs and reduced demand with adoption of
decarbonization regulations for conventional clinker-based cement, which has ahigh CO2 emission rate. However, there are also opportunities in the increased
demand for cement manufactured using low-carbon manufacturing methods.
Our Policies, Strategies and Initiatives
Because the business operation excludes all of the cement production process,CO2 emission is limited. We will implement sales strategies tailored to changes
in the market to capture the transition of fuel used in the cement production
process to clean energy sources, and the growth in use of low-carbon cementthat replaces the limestone used as the principal raw ingredient with othermaterials. In collaboration with cleantech companies as well, we are verifying
clean cement production technologies and verifying development of related
products using those technologies.

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Sustainability of
Sumitomo Corporation
Group

FeatureEnvironment
Environment

SocialGovernance

Our Climate Change Initiatives:
Disclosure Based on TCFD Recommendations

ESG
Quantitative
Data[Display of referenced scenarios(macro environment)]

Common▌ Strategy: Transition Risks and Opportunities Related to Climate Change〈Scenario Analysis〉

STEPS Material industry sector: Chemicals

NZE

Common
NZE

2030

2050

Demand for chemicals will increase as power generation from renewable energy and energyrelated infrastructure expands
Chemical production increases by
15%

APS

Principles andPolicies

IBC
Stakeholder
Capitalism
Metrics

Trends of Supply and Demand Changes in Referenced Scenario(Macro Environment)：Significant increase toincrease：Slightly decrease
to decrease：Increase to
Slightly increase：Decreaseto Significant decrease：NeutralOur business environment, policies and initiatives

Referenced scenarios (Macro environment: changes in chemical production）
2021

External
Recognition

Commitment
to External
Initiatives

Our Business
Manufacturing, trading
External environment, risks and opportunities
Chemical demand is expected to increase with the expansion of renewableenergy and energy-related infrastructure. On the other hand, naphtha
produced by refining petroleum and gas is used as the principal raw material,
but in the long-term process of energy decarbonization, the supply of naphthaused as raw material is expected to decline. In addition, CO2 is emitted inhuge volumes from fossil fuel energy used in the synthesis and decomposition
processes of petrochemical product manufacturing, so demand for low-carbon
manufacturing processes, including shifting energy used in the processes torenewable energy, is expected to grow.
Our Policies, Strategies and Initiatives
We will monitor customer demand for decarbonization, and trends in relevant
technologies, and will explore business opportunities in chemical productmanufacturing using biomass materials and CCU (CO2 capture andutilization). In addition, we will continue our global trading by adjusting tochanges in supply and demand in petrochemical product raw materials andfinished product markets.

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FeatureEnvironment
Environment

SocialGovernance

Our Climate Change Initiatives:
Disclosure Based on TCFD Recommendations

CommonReferenced scenarios (Macro environment: changes in aluminum production）

CommonNZE

In the NZE scenario, demand increases for aluminum smelted using
electricity from renewable energy
Aluminum production
increases by 6%

STEPS
APS
NZE

 Material industry sector: Aluminum

2030

External
Recognition[Display of referenced scenarios(macro environment)]▌ Strategy: Transition Risks and Opportunities Related to Climate Change〈Scenario Analysis〉

2021

ESG
Quantitative
Data

2050

Commitment
to External
Initiatives

Principles andPolicies

IBC
Stakeholder
Capitalism
Metrics

Trends of Supply and Demand Changes in Referenced Scenario(Macro Environment)：Significant increase toincrease：Slightly decrease
to decrease：Increase to
Slightly increase：Decreaseto Significant decrease：NeutralOur business environment, policies and initiatives
Our Business
Smelting
External environment, risks and opportunities
Because of its lightness and excellent recyclability, aluminum is an essential
metal for decarbonization of society, including improving fuel efficiency of
automobiles by reducing vehicle weight, so demand is forecast to increase.
On the other hand, large amounts of electricity are consumed in the primarysmelting process, so in a future society promoting low-carbonization anddecarbonization, demand for green aluminum, manufactured using electricity
from renewable energy and other methods to reduce CO2 emissions, isforecast to increase.
Our Policies, Strategies and Initiatives
Our aluminum smelting business in Southeast Asia chiefly utilizes renewableenergy derived from hydroelectricity, so future risks pertaining to carbon
pricing is expected to be limited, and the business is likely to remaincompetitive in the medium to long term. . For this reason, future demand for
decarbonization in the supply chain from end-users is expected to present
business opportunities where Sumitomo Corporation is able to utilize its
strengths. Therefore, we will work toward strengthening our competitivenessby further expanding our interests in green aluminum and increasing volumes
we handle.

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Sustainability of
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Group

FeatureEnvironment
Environment

SocialGovernance

Our Climate Change Initiatives:
Disclosure Based on TCFD Recommendations

ESG
Quantitative
Data[Display of referenced scenarios(macro environment)]

Common▌ Strategy: Transition Risks and Opportunities Related to Climate Change〈Scenario Analysis〉

STEPS

 Real estate sector: Office buildings/residential building sales business

NZE

Referenced scenarios (Macro environment: changes in floor space in commercial andresidential buildings and renovation ratio of buildings）
2030

2020

CommonAPSNZEIn NZE, real estate demand remains strong due to population growth inemerging/developing countries
About 10% of existing residentialbuildings are renovated
Over 20% of existing residentialbuildings are being retrofitted,
with "Zero Carbon Ready"buildings accounting for 20% of
the total

Floor space in commercial and residentialbuildings will increase by about 1.7 times from2020 levels. Retrofitting of current building
stock progresses, with "Zero Carbon Ready"buildings accounting for 85% of the total

External
Recognition

2050

APS

Commitment
to External
Initiatives

Principles andPolicies

IBC
Stakeholder
Capitalism
Metrics

Trends of Supply and Demand Changes in Referenced Scenario(Macro Environment)：Significant increase toincrease：Slightly decrease
to decrease：Increase to
Slightly increase：Decreaseto Significant decrease：NeutralOur business environment, policies and initiatives
Our Business
Office buildings, commercial facilities, residential housing, distribution facilities and realestate funds

External environment, risks and opportunities
Demand in the real estate sector is forecast to increase in light of population increases
and urbanization in emerging and developing countries and increasing refurbishment ofexisting buildings. On the other hand, a major challenge for buildings is to reduce CO2
emissions by reducing energy consumption.
In Japan, in order to achieve carbon neutrality by 2050, energy-saving performanceequivalent to the ZEH/ZEB standards will be required for new properties after 2030 aspart of demand for CO2 emission reductions through improved energy efficiency. If
unable to meet these requirements, the risks are that real estate prices will fall, anddemand will decline due to increased operating costs. However, meeting therequirements offers opportunities for increased earnings as demand for ZEH/ZEBcompliant building increases and property values increase.

Our Policies, Strategies and Initiatives
We are involved in development and operation of a range of real estate properties. We
will continue efforts to improve energy efficiency and introduce renewable energy byadopting the latest equipment, including smart meters and EMS, in new properties andupdating equipment in existing properties, based on trends in customer demand andtechnologies. In addition, we are cooperating with tenants to implement environmentallyfriendly initiatives. We will also work on acquiring environmental certification anddeveloping properties to the ZEH/ZEB standards.

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Sustainability of
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Group

FeatureEnvironment
Environment

SocialGovernance

Our Climate Change Initiatives:
Disclosure Based on TCFD Recommendations

ESG
Quantitative
Data

External
Recognition[Display of referenced scenarios(macro environment)]

Common▌ Strategy: Transition Risks and Opportunities Related to Climate Change〈Scenario Analysis〉

FPS
RPS

Principles andPolicies

IBC
Stakeholder
Capitalism
Metrics

Trends of Supply and Demand Changes in Referenced Scenario(Macro Environment)：Significant increase toincrease：Slightly decrease
to decrease：Increase to
Slightly increase：Decreaseto Significant decrease：Neutral♦Other：Forestry businessOur business environment, policies and initiatives

Referenced scenarios (Macro environment: changes in size of forest area）
2030

2020

Commitment
to External
Initiatives

2050

CommonSustainable forest management is promoted and the size of forest area increases

FPS

Forest area increases by 57% by 2050

RPS

Forest area increases by 81% by 2050

Our Business
Forestry business
External environment, risks and opportunities
With the trend toward carbon neutrality, the United Nations, COP26, and national governments
are establishing many targets for such objectives as stopping forest destruction and landdegradation, and increasing forest protection and the size of forest areas. In each of the
scenarios to the left, forest area is forecast to increase in size by 2050.
Under these circumstances, while monitoring of illegal logging and activities that can lead to
deforestation will be strengthened, we believe that sustainable forest management and timber
supply will increase in value.
Also in the future, demand is forecast to increase for carbon removal credits that recognize
absorption of CO2 in forest cultivation processes, and for alternatives to petrochemical products
by using low environmental impact forest products from sustainable logging. We therefore expect
competition around investment and development will intensify among countries and companies
in this field.

* Temperature ranges used in PRI’s FPS and RPS scenarios are similar to those used in IEA’s APS andNZE scenarios respectively.
ー The temperature range in PRI’s FPS scenario (rise of less than 1.8°C by 2100) is similar to thetemperature range in IEA’s APS scenario (rise of 1.7°C by 2100).
ー The temperature range in PRI’s RPS scenario (rise of 1.5°C by 2100) is similar to the temperature range
in IEA’s NZE scenario (rise of 1.5°C by 2100).

Our Policies, Strategies and Initiatives
We established the Forest Management Policy and the Sourcing Policy for Forest Products in
2022 as part of efforts toward sustainable forest management and sourcing of forest products.
In line with these policies, we will expand our forestry business on the assumption of sustainable
forest management. While supplying conventional forest products, we will also work to develop
new products and businesses that contribute to the capture, storage, and utilization of CO2.
Please see here for more details on the Forestry business in New Zealand.

[Disclaimer regarding forecasts]
The projections and forecasts contained here are based on information available as of the date of this announcement, and on certain assumptions and projections. Therefore,
actual results and performance may differ significantly due to various uncertainties, including future economic trends and market prices. Neither the company nor the
information providers assume any responsibility for any errors in the information posted or for any damages incurred based on the information presented.
© 2023 Sumitomo Corporation

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Group

FeatureEnvironment
Environment

SocialGovernance

ESG
Quantitative
Data

External
Recognition

Commitment
to External
Initiatives

Principles andPolicies

IBC
Stakeholder
Capitalism
Metrics

Our Climate Change Initiatives: Disclosure Based on TCFD Recommendations▌ Strategy: Physical Risks Related to Climate Change and Countermeasures
Each year, we identify the Group's sectors and businesses affected by physical risks and inspect the status of their response to these risks. In particular, for businesses with large outdoor sites or thosethat require large amounts of natural resources for operations, we use assessment tools to analyze the degree of impact of physical risks and individually check the status of their response.
[Identification of Risks and Status of Response at Sumitomo Corporation]
Since the Group operates in a wide range of sectors around the world, we refer to UNEP FI reports describing the impact of physical risks on major sectors, as well as other reports. We identify the majorrisk characteristics for each of our sectors that are likely to have a significant impact, as well as the major businesses we are involved in, as shown in the table below. This year, we have added forestry tothis list.
Physical risks are largely divided into chronic risks that have continuous and chronic impacts on business activities, (e.g., rise in average temperatures, change in rainfall patterns, rise in sea level, etc.)
and acute risks caused by unforeseen damage (e.g., escalation of extreme weather conditions such as huge rainstorms, flooding, drought, and forest fires, etc.). The impact is wide-ranging, including
direct impact on production site facilities and working conditions, and indirect impact on a broad range of supply chains of raw materials and products. For our business in a broad range of fields andregions, we manage such risks by assessing the impact of local weather and geographical factors on our business at the time of investment, conducting continued assessments after participation in thebusiness, clarifying the scope of contractual responsibility, and concluding nonlife insurance policies.
Awareness of the impact of physical risks in each sector

SectorChronic
Water shortage resulting in decline in production
efficiency and in operation efficiency, risk ofsubmergence due to sea level rise, etc.

AcutePrincipal business related to the risk described at left

Damage on facilities, disruption of operation, etc., causedby flooding and huge rainstorms

Thermal power generation in Southeast Asia, Middle East and Africa、Wind
power generation in Japan and overseas, biomass power generation in Japan,
solar power generation, and other renewable energy generation businesses, etc.

Resource &Interest

Damage on facilities, disruption of operation, etc., causedby flooding and huge rainstorms

Mining operations in North America, South America, Australia, Africa, etc.; energy
interests in Southeast Asia, Middle East & Europe; and sales of such resourcesand energy

Transportation Water shortage resulting in decline in production
systems
efficiency, disruption of operation, etc.
Delay in project schedule, rise in utility cost, decline
in property value with a rise in sea level, etc.,
resulting from rising temperature

Damage on facilities, disruption of operation, delay in raw
materials/product shipment, etc., caused by flooding andhuge rainstorms
Damage on facilities, disruption of operation, delay in raw
materials/product shipment, etc., caused by flooding andhuge rainstorms
Delay in project schedule, decline in property value causedby structural damage & flooding, etc., caused by flooding
and huge rainstorms

Agriculture

Rise in temperature & climate change resulting in
decline in production efficiency, etc.

Disruption in operation, etc., caused by huge rainstorms,
flooding or drought

Agriculture & import and wholesale of food products, retail sales business, etc.

Forestry

Temperature change resulting in changes in thegrowth environment, etc.

Decline in asset value of forest resources, etc., caused
by natural disasters

Forestry business in Russia, New Zealand, etc.

EnergyRise in temperature & water shortage resulting in
decline in production efficiency, disruption in
operation, risk of flooding with rise in sea level, etc.
Rise in temperature & water shortage resulting in
Raw materials decline in production efficiency, disruption in
operation, etc.

Real estate© 2023 Sumitomo Corporation

Manufacturing, processing, sales, etc., of metal products, transportationequipment and parts, chemical products, materials, etc.
Manufacturing and sales, etc., of transportation equipment and parts
Office building business, retail facilities business, residential business, logistics
facility business, etc.

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SocialGovernance

ESG
Quantitative
Data

External
Recognition

Commitment
to External
Initiatives

Principles andPolicies

IBC
Stakeholder
Capitalism
Metrics

Our Climate Change Initiatives: Disclosure Based on TCFD Recommendations▌ Strategy: Physical Risks Related to Climate Change and Countermeasures[Results of Risk Analysis of Susceptible Businesses and Status of Response]
While physical risk includes a variety of risks, we have conducted a more detailed risk analysis of the sectors and businesses identified on the previous page as being susceptible to physicalrisk based on the factors such as having large outdoor locations or requiring a large amount of natural resources for operations.
In addition to power generation, upstream resources and energy, real estate, and agriculture businesses, we also conducted a risk analysis of forestry businesses this year using assessment
tools such as the RCP8.5 scenario*1 based on the IPCC*2 scenario of a 4°C rise by 2100, mainly in terms of water stress, flooding and sea level rise, temperature rise, and forest fires, basedon information such as the geographical information of major business sites, while considering the actual conditions of the businesses. For these businesses, we also confirmed that risk
management was being conducted appropriately by assessing the impact of local weather and geographical factors on our business at the time of investment, conducting continued
assessments after participation in the business, clarifying the scope of contractual responsibility, and concluding nonlife insurance policies.
SectorAnalysis Results and Status

EnergyAnalysis of water stress on power generation business showed there are regions with possible water shortage. However, water used in our thermal power generation
business, which uses large amounts of water for cooling, is supplied by seawater, water production facilities within the power plant, etc., leading to the conclusion that therisk of operation disruption caused by water shortage, etc., is not significant.

Resource &Interest

In the study of the resource & interest business in terms of water stress and continual temperature increase risk, there are regions found to have relatively high risk of longterm increase in the number of days when temperature reaches 35°C or higher and possibility of water shortage. Sumitomo Corporation plans to execute risk control
through assessment of disaster risks vis-à-vis geographical conditions, etc., definition of working conditions with sufficient attention to temperature and other conditions,subscription to nonlife insurance, etc.

Real estate

In the real estate business, sufficient research and analysis are being conducted on flooding risks for various locations during the development studies stage. Property
projects are being selected through conservative assessment of risks based on information from hazard maps and specific conditions of each property site, etc. In
promoting project development, measures are being taken on physical risks in order to minimize them. For this reason, risks in the business portfolio as a whole are notconsidered significant.

Agriculture

In the analysis of temperature rise and water stress for major agricultural sites in each country, there are regions with a possible increase in the number of days whentemperature rises to 35°C or higher and possible water shortage. Although adverse impact is anticipated on such agricultural operations if such risks affect agricultural
product quality, output, etc., Sumitomo Corporation has diversified crops and regions in the business and has therefore built risk resistance to a certain degree in terms of
total performance.

Forestry

In the analysis of forest fire risk in the forestry business, it was confirmed that the risk is low for the forest assets currently owned by the Company. For our forests, we aretaking measures in accordance with fire prevention plans, etc. In the risk analysis based on TNFD*3 framework, our forest assets in New Zealand were analyzed as a wholefor natural disaster risk, including floods, etc. (For details of the analysis results, please refer to the page p.73 to 78).

*１ Representative Concentration Pathway： A scenario in which the temperature rises by 4°C by 2100
*２ Intergovernmental Panel on Climate Change：Intergovernmental Panel on Climate Change*３ Taskforce on Nature-related Financial Disclosures： A global initiative aimed to develop and deliver a risk management and disclosure framework for organizations to report and act on evolving nature-related risks.
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FeatureEnvironment
Environment

SocialGovernance

ESG
Quantitative
Data

External
Recognition

Commitment
to External
Initiatives

Principles andPolicies

IBC
Stakeholder
Capitalism
Metrics

Our Climate Change Initiatives: Disclosure Based on TCFD Recommendations▌ Risk Management
 Our Group's activities cover businesses across a broad range of fields and regions and involve various social issues. We always attach great importance to these social
issues, and in order to appropriately control the social and environmental impact of the entire Group's business activities, establish policies such as the Environmental
Policy, Human Rights Policy, CSR Action Guidelines for Supply Chain Management, Anti-Corruption Policy, and Compliance Guiding Principles, and publicize andthoroughly enforce them within the Group.
 We evaluate social and environmental risk and confirm response measures as part of our deliberation processes when considering and implementing new business froma broad perspective. In particular, with regard to climate change, we confirm the following with regard to risks (and opportunities) related to business continuity being
impeded by the inability to appropriately respond to changes in the business environment resulting from social and environmental problems such as climate change.
• The impact of climate change such as the frequent occurrence of natural disasters and abnormal weather• The impact of the introduction of regulations• The impact of technology changes, etc.
• The potential for the expansion of business or the improvement of business performance through advances in climate change mitigation and adaptation to climatechange With regard to our existing business, as well, we regularly monitor the overall management status of these risks to each business, including social and environmental risks.
In addition to managing risk related to individual businesses, we assess the status of companywide social and environmental risks and develop systems that enable theseassessments to be used to make strategic management decisions.
 We have newly introduced an internal carbon pricing system to strengthen climate change risk management for these new and existing businesses. When consideringand conducting new businesses, we conduct analysis using 1.5°C scenarios, etc. (NZE scenario, etc.*) to identify potential risks and opportunities in a more decarbonizedsociety and to consider measures to respond to them. In addition, we use the results to understand our overall CO2 emissions and their potential costs, as well as CO2
reductions and absorption and their potential benefits, in order to make management decisions.
 With regard to the handling of the risks of climate change, each business organization assesses the introduction of regulations and market changes for related businesssectors and conducts business activities, and as a part of companywide portfolio management, the Corporate Sustainability Department summarizes the status of majorrisks to the Group, taking into consideration global efforts relating to climate change and regulatory trends. The results are periodically reported to the Management
Council and the Board of Directors. If there are any unacceptable risks from the perspective of the portfolio as a whole, measures including reduction of exposure areinvestigated with organizations responsible for risk management.
© 2023 Sumitomo Corporation*Net Zero Emission Scenario: A scenario by the International Energy Agency in which a net zero emission is achieved by 2050 (1.5°C above pre-industrial levels by 2100). 58

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FeatureEnvironment
Environment

SocialESG
Quantitative
Data

GovernanceCommitment
to External
Initiatives

External
Recognition

Principles andPolicies

IBC
Stakeholder
Capitalism
Metrics

Our Climate Change Initiatives: Disclosure Based on TCFD Recommendations▌ Metrics and Targets▌ Results

Targets：Effort for carbon neutrality
The Group has adopted the following as its basic policy on climate change issues.
 Reduce CO2 emissions 50% or more by 2035 (compared to 2019)[ Power generation business ]CO2 emissions: Reduce 40% or more (of which 60% reduction or more forcoal-fired power generation business)
Net ownership generation capacity: coal 20%, gas 50% renewables 30%[ Fossil fuel upstream business ]CO2 emissions *1: Reduce 90% or more

║ CO2 Emissions





Index

For coal-fired power generation business, no further involvement in IPP (Independent Power
Producer) nor EPC (Engineering, Procurement, Construction) business and will end all the coal-fired
power generation business in the late 2040s. For thermal coal mine interest, no additional
investment and aim to achieve zero equity production from thermal coal mines by 2030.
Increase supply of renewable energy (5GW or more by 2030)

Index: Internal carbon pricing utilization index for achieving carbon neutrality
The Group uses carbon emissions cost, environmental value, and CO2 reduction contribution as
indexes in order to assess the impact of climate change on potential future business risks andopportunities and to take early action in order to promote initiatives to achieve carbon neutrality
for the Company and society. See p.30 for details.

Targets：Effort for carbon neutrality (As of 2022)

Scope Direct

1

Sumitomo
Corporation/
Subsidiaries
Associatedcompanies(equitymethod)emissions

Scope Indirect emissions

2

from acquired
electricity etc.

Approx. 1 million tons

(Excluding power generation business)
Thermal power generation business(Includes estimates for projects
under construction.)

Approx. 43 million tons

Scope Other indirect3

emissions

Fossil energy
concession
Approx. 9 million
tons*1 Indirect CO2 emissions by others associated with the use of energy resources produced© 2023 Sumitomo Corporation(Thousand t-CO2e)
Result of FY2019（The base year）

Result of
FY2022

Percentage ofchangeReduction targets of2035

Entirety

59,93952,572▲12.3%

50％ or morePower generation
business *2

43,126

42,613▲4.0%

40％ or more

34,452

34,853

1.2%

60％ or more

15,8089,203▲41.8%

90％ or more

Of which, coal-fired
power generation *2
Fossil energy
concession

Figures for active power generation projects and fossil energy interests are calculated with the advice ofa third party.
*2 Includes estimates for projects under construction.

║ Net ownership generation capacity portfolio（Figures noted inbrackets indicate net ownership generation capacity）
(MW)

Index

Result of March 31, 2020
（The base year）

Result of March 31,
2023

Coal

5,240

5,208

Gas

3,011

2,994

Renewable energy *3

1,397

1,771

Total

9,651

9,974

║ Net ownership generation capacity of Renewable energy
Index
Renewable energy *3

Result of March 31, 2020
（The base year）

Result of March 31,
2022

1,397

1,771

(MW)
Targets of 2030
5,000 or more

*3 Includes capacity held by a fund whose management company is 51% owned by Sumitomo Corporation.
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Recognition

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Initiatives

Principles andPolicies

IBC
Stakeholder
Capitalism
Metrics

Climate Change
Activities║ Activity Description

Renewable Energy Related BusinessWe have entered power generation business using renewable energy, which is expected to grow as a medium- to long-term energy source, contributing to mitigating climate change.
As of March 31, 2023
Fuel

Solar power

Wind power

Power plant

Country

Generation
Capacity（MW）

Osaka Hikarinomori Project

Japan

10.0

Solar Power Saijo

Japan

29.0

Solar Power Kitakyushu

Japan

16.0

Solar Power Tomakomai

Japan

15.0

Solar Power Minamisoma/Kashima

Japan

59.9

Solar Power Minamisoma/Haramachi

Japan

32.3

EVM/EVM2

Spain

14.0

Thang Long Industrial Park
(TLIP)/TLIPⅡ/TLIPⅢ

Vietnam

25.1

Oga Wind Power Plant

Japan

28.8

Summit Wind Power (Kashima)

Japan

20.0

Abukuma Wind Power Plant

Japan

147.2

Datang Sino-Japanese (Chifeng) New
China
Energy50.0

Stanton Wind Energy

USA

120.0

Cimarron Ⅱ Wind

USA

131.1

Ironwood Wind

USA

167.9

Dorper WindSouth Africa

100.0

Mesquite Creek Wind

USA

211.2

Amunet

Egypt

500.0

© 2023 Sumitomo Corporation

FuelPower plant

Country

Generation
Capacity（MW）

Northwind

Belgium

216.0

Nobelwind

Belgium

165.0

Northwester2

Belgium

219.0

Galloper

UK

352.8

Race Bank

UK

573.3

Summit Handa Power

Japan

75.0

Summit Sakata Power

Japan

50.0

Summit Myojo Power

Japan

50.0

Sendai-ko Biomass Power

Japan

112.0

GeothermalPower

Muara Laboh

Indonesia

85.0

Hydraulic power

CBK

Philippines

792.0

Offshore wind
power

Woody biomass

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Sustainability of
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Group

FeatureEnvironment
Environment

SocialGovernance

ESG
Quantitative
Data

External
Recognition

Commitment
to External
Initiatives

Principles andPolicies

IBC
Stakeholder
Capitalism
Metrics

Climate Change
Activities║ Activity Description
Green Building Initiatives and Issuance of Green Bonds
In our real estate business, we have formulated and implemented basic policies related to environmental,●Energy Saving Equipment
Costs related to renewal of air-conditioning equipment, conversion of lighting fixtures to LEDs, andsocial and governance (ESG) issues. As a real estate management company, Sumisho Realty Management

introduction of power storage systems (expected energy savings of 10% compared with conventional

Co., Ltd. (“SRM”) believes that incorporating ESG elements into investment decisions and operation

systems)

processes is essential to maximizing value of medium- to long-term investor. For SOSiLA Logistics REIT, Inc.

● Renewable Energy(“SLR”) and other fund properties under the company’s management, it has had its real estate performance

Acquisition or installation of renewable energy power generation facilities (installed on the premises or

evaluated by CASBEE, DBJ Green Building, LEED, BELS, and so on. Also, SOSiLA Logistics REIT Inc. has
been awarded “5 Stars” in the 2022 GRESB Real Estate Assessment and the second highest “A Level” for theon the rooftop of the property)
Property Name

Evaluation

SOSiLA Yokohama Kohoku

Rank A

management through green finance. In June 2023, SLR issued 3,000 million yen Green Bonds with aims to

SOSiLA Sagamihara

Rank A

strengthen the funding platform by expanding the ESG investor base, along with promoting ESG initiatives.

SOSiLA Kasukabe

Rank A

Proceeds procured through Green Finance are used for the acquisition of existing or new assets (including

SOSiLA Kawagoe

Rank AGRESB Public Disclosure, which measures the quality of ESG disclosure.

Certification Obtained

SLR is the first J-REIT to formulate a green finance framework since IPO. It is promoting ESG-oriented asset

scheduled acquisition) of Eligible Green Assets that satisfy any of the following eligible criteria, used for the

SOSiLA Nishiyodogawa I

Rank A

renovation of Eligible Green Assets, or repayment and redemption of loans (including Green Loan) andSOSiLA NishiyodogawaⅡ

Rank A

Investment Corporation Bonds (including Green Bonds) required for these.

SOSiLA Ebina

Rank S

LiCS Narita

Rank ACASBEE: 9 properties

SOSiLA Itabashi＜Eligibility Criteria＞●Green Building

LEED: 2 properties

Any of the following items that have been or will be certified
・B+ rank, A rank, or S rank in CASBEE certification
・Three-star, four-star, or five-star DBJ Green Building certification
・Three-star, four-star, or five-star BELS certification
・Silver, Gold or Platinum in LEED certification● Renovation of existing building
Renovation of the owned assets which meet the following;i. To aim for improving environmental benefits such as reducing CO2 emission, energy consumption or water
consumption (10％ or more decrease in its volume)ii. To improve the certification level by one rank, acquisition or reacquisition of the certifications© 2023 Sumitomo Corporation

BELS：10 properties

203 North LaSalle

Building (New Building)A RankPLATINUM

Atlanta Financial Center

SILVERSOSiLA Yokohama Kohoku☆☆☆☆☆

SOSiLA Sagamihara☆☆☆☆☆

SOSiLA Kasukabe☆☆☆☆☆

SOSiLA Kawagoe☆☆☆☆☆

SOSiLA Nishiyodogawa I☆☆☆☆☆

SOSiLA Ebina☆☆☆☆☆

SOSiLA NishiyodogawaⅡ

☆☆☆☆☆

☆☆☆☆
☆☆☆☆☆
☆☆☆☆☆
SOSiLA Amagasaki
Acquisition of major environment-related certifications at fund properties managed by
Sumisho Realty Management Co., Ltd. (as of July 2023).
LiCS Narita

SOSiLA Itabashi

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FeatureEnvironment
Environment

SocialGovernance

ESG
Quantitative
Data

External
Recognition

Commitment
to External
Initiatives

Principles andPolicies

IBC
Stakeholder
Capitalism
Metrics

Climate Change
Activities║ Activity Description
GX Concierge, Providing Side-by-Side Support for Decarbonized Management
To realize carbon neutrality, companies need to develop a green transformation (GX) management cycle for the ongoing process of assessing their current greenhouse gas (GHG)
emissions, formulating GX strategies and measures, adopting GX solutions, and evaluating and revising the process. Sumitomo Corporation, ABeam Consulting, and group company
SCSK are working together on a project called "GX Concierge" to mitigate climate change to carbon neutrality for society. Specifically, GX Concierge provides various GX-related
consulting services, including support for measuring GHG emissions, support for developing a GHG reduction roadmap, and support for making disclosures under the Task Force on
Climate-related Financial Disclosures (TCFD). It acts as a one-stop service for all the customer’s needs, from adoption of various Sumitomo Corporation Group’s GX solutions, such as
solar power generation and EV leasing businesses, to GHG emission management cloud services for visualizing GHG emissions. With climate change disclosures in line with TCFD
recommendations becoming mandatory from FY2022 for companies listed on the Prime Market of the Tokyo Stock Exchange, we have already been providing GX consulting and othersupport services to our suppliers.
Sumitomo Corporation Group is deeply involved in the supply chains of a wide range of industries, so we aim to work with our suppliers and business partners to tackle climate change
mitigation head-on and help realize a carbon neutral society through GX Concierge.

© 2023 Sumitomo Corporation

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ESG Communication Book

FeatureEnvironment
Environment

SocialGovernance

ESG
Quantitative
Data

External
Recognition

Commitment
to External
Initiatives

Principles andPolicies

IBC
Stakeholder
Capitalism
Metrics

Climate Change
Activities║ Activity Description║ Activity Description

ZEB Ready Certification for Hatchobori 1-chome Office Building Project (tentative title)

Issuing Green Bonds and Operating Eco-friendly Data Centers in the IT Business

Sumitomo Corporation is working with business partners to develop the Hatchobori 1-chome Office
Building Project. In June 2023, this project received ZEB Ready certification (for net zero energy
buildings) in a first for office buildings that we have developed. The ZEB Ready certification is given to
non-residential buildings that are able to reduce primary energy consumption by 50% or more compared
to base energy consumption through various energy-saving measures.
This office building achieved a BEI value of
0.48

(52%

reductioncomparedtothe

SCSK Group plays a central role in the IT business of Sumitomo Corporation Group. SCSK conduct
management aimed at resolving social issues through business and achieving sustainable growth
together with society.. SCSK specified the issues that it views as particularly important and that itshould prioritize taking action on to achieve growth together with society as material issues. As an
initiative to contribute to their materiality, Global Environmental Contributions” they issued a 5 billion
yen green bonds in June 2021 to fund the construction, refurbishment, acquisition, and operation ofstandard) by adopting Low-E glass and lightan eco-friendly data center (netXDC Chiba Center No. 3) through energy-saving measures. The data

shelves on the exterior, high-efficiency air

center is designed to dramatically reduce electricity consumption through the use of LED lighting,conditioning equipment, changes in room

exterior insulation, and other measures including use of high-efficient air-cooled free-cooling chillers fillumination, and the addition of lighting control(air conditioners with cooling systems that use the outside air). The center has been in service sinceequipment, thereby realizing an energy-savingbuilding with a low environmental impact.

May 2022.
SCSK Group has been working on power saving to reduce greenhouse gas emissions, mainly at its
data centers. Going forward, the SCSK Group will continue its ambitious efforts to reduce greenhouse

Using GX Concierge to Visualize GHG Emissions from Logistics Facilities (SOSiLA )gas emissions by promoting further power conservation and the use of natural energy. And willcontribute to the realization of a decarbonized society and the development of a sustainable society

To assist efforts toward decarbonization, we have used GX Concierge to calculate and visualize GHG

through the practice of environmentally friendly business activities and the creation of businessemissions from at our own logistics facilities that we have developed and that we, and other Group

opportunities.

companies and SOSiLA Logistics REIT, Inc. To date, the SOSiLA series has been actively pursuingenvironmental certification in order to provide logistics facilities with high environmental performance to its
tenant companies and JLF‘s SOSiLA Logistics REIT, Inc. investors.
As part of efforts to further reduce our GHG
emissions, we will work to reduce the full life-cycle of
GHG emissions by securing green power for facilities
that are currently operating through installation ofrooftop solar panels and other initiatives, and byadopting

materials

with

high

performance for future facilities.
© 2023 Sumitomo Corporation

environmental

Bonds used to fund netXDC Chiba Center No. 3
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Group

FeatureEnvironment
Environment

SocialGovernance

ESG
Quantitative
Data

External
Recognition

Commitment
to External
Initiatives

Principles andPolicies

IBC
Stakeholder
Capitalism
Metrics

Climate Change
Activities║ Activity Description║ Activity Description

Retrofitted EV Bus Business with Nishitetsu Group

Hakobune Established to Provide a Service Combining EVs with Energy Management

Sumitomo Corporation is working with Nishi-Nippon Railroad Co., Ltd. (Nishitetsu) todevelop a retrofitted EV bus business that converts existing diesel buses into electricvehicles. With reducing CO2 emissions being an important challenge for the bus
industry as well, EV buses have become increasingly important in recent years.
However, only limited numbers of EV buses have been put into operation so far due tothe high price of the vehicles. Focusing on this challenge, we have successfully
deployed the Retrofitted EV Bus scheme, together with Nishitetsu Auto Body Tech Co
ltd, with practical cost using EV kits powered by RAC Electric vehicles Inc. which is theleading EV bus manufacturer in Taiwan.
This business is an initiative that contributes to various social issues, including
development of local society and economy, the circular economy, and mitigation ofclimate change. By introducing and expanding use of these domestic retrofitted EV
buses by Nishitetsu and other domestic bus businesses, we will contribute todecarbonization of the bus industry in Japan.

Sumitomo Corporation has established Hakobune Inc. to provide “EV x energy management”
services. Hakobune will provide companies with commuter EVs for employees and workplacecharging (WPC) facilities on a monthly subscription basis. If required by the companies, solar
power generation equipment can be added to the package. To help employees update theircommuting options and help companies decarbonize, Hakobune will provide commuter EV
vehicles and WPC equipment for solar charging at workplaces to companies and theiremployees in areas where cars are critical for commuting. Sumitomo Corporation will makefull use of its experience in the automotive and electric power businesses to accelerate its
efforts to become carbon neutral through Hakobune's business while providing workers with a
comfortable mobility lifestyle, thereby realizing the development of local communities andeconomies.

First retrofitted EV bus assembled in Japan (operating in Fukuoka City from June 2023)© 2023 Sumitomo Corporation

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Group

Environment
Environment

FeatureSocialGovernance

ESG
Quantitative
Data

External
Recognition

Commitment
to External
Initiatives

Principles andPolicies

IBC
Stakeholder
Capitalism
Metrics

Water Resources
Activities

Policy and Concept
Water is an essential natural resource. However, due
to an increase in water demand as a result of
population growth and economic development, there
will be more and more areas where water will become
scarce. According to the Organization for Economic
Co-operation

andDevelopment(OECD),

water

demand is projected to increase by 55% between
2000 and 2050 and, in 2050, 240 million people will
have no access to clean water and 1.4 billion people
will be without access to basic sanitation.
Our Group conducts its business around the world,
includinginhighlywater-stressed

areas.

Fully

recognizing the finiteness of water resources, weapproach relevant issues both in terms of risk andopportunity through our efforts to reduce water
consumption, improve efficiency, and establish water
infrastructure.

ESG Quantitative Data on Water║ Activity Description
Water Business
While water demand is expected to increase on a global basis as a result of population growth, urbanization and industrialization, theinfrastructure environment to ensure the supply of safe and hygienic water has not been improved and water issues are expected to
become even more serious. In response, in the 21st century, water business that aims to address water issues has started attracting
people's attention globally. Increasing awareness that developed countries are responsible for contributing to achieving a safe andhygienic living environment in developing countries has also contributed to the increased attention to water business.
We regard water business combining water supply and sewerage systems as an important pillar of social infrastructure. Based on thisrecognition, we are engaged in various business projects around the world. We have been expanding our water business from BOOT
and BOO business*1 using private-sector capabilities*2, such as water and sewage treatment and seawater desalination, to fully
privatized business in promising markets around the world, including areas with rapidly increasing water demand. We have realized
substantial achievements in these business areas. We will continue to take on challenging issues in globally expanding and multifacetedwater business by supplying safe and secure water using Japanese technology and responding to the demand for reducing social costs
by using private capital.
*1 BOOT (Build–Own–Operate–Transfer) is a form of providing services under a long-term contract with the public sector and, after the contract period,transferring the business assets to the public sector
BOO (Build-Own-Operate) is a form of providing services under a long-term contract with the public sector as in BOOT but the assets will bemaintained by the business operator.
*2 Use of private-sector capabilities: Use of business operation capabilities and funds of the private sector for business projects that have traditionallybeen conducted and financed by the public sector to increase efficiency
Country© 2023 Sumitomo Corporation

Activity Description

Business category

BrazilInvestment in BRK Ambiental, a top Brazilian company engaged in water business, holds assets of 23
business projects of water supply and sewerage treatment (our indirect ownership ratio is 14%). We areparticipating in promising water supply and sewerage treatment business in Brazil.

Water supply andsewerage treatment
businessUK

We acquired 50% of the shares of Sutton & East Surrey Water, a UK water business company, and became
involved in fully-privatized water business in the UK.

Water supply business

China

We established Capital Summit at 40% share ratio with Beijing Capital Eco-Environment Protection Group, aSewerage treatment
leading water infrastructure company in China. Capital Summit operates sewage treatment plants in Shandong
business
Province and Zhejian Province.

Oman

We have been awarded a seawater desalination project using reverse osmosis membrane technology andprivate-sector capabilities/funds. Commercial operation was started in February 2016.

Seawater Desalination
business
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Group

FeatureEnvironment
Environment

SocialGovernance

ESG
Quantitative
Data

External
Recognition

Commitment
to External
Initiatives

Principles andPolicies

IBC
Stakeholder
Capitalism
Metrics

Prevention of Pollution
Policy and Concept
Sumitomo

Corporation

Activities
Group’sbusinesscovers a wide range of areas around the world.
As described in the Environmental Policy, the║ Activity Description
Efforts to Reduce Environmental Impacts in the Agrochemical / Fertilizer Sales BusinessGroup complies with environment-related laws

Our major mission in the realm of agrochemical/fertilizer business is to provide

As an IPM effort, we are spreading the use of a communication disruptor

and regulations and contributes to creating a

the best-quality agrochemicals/fertilizers that fulfill the needs of farmers(pheromone agent) developed by Shin-Etsu Chemical Co., Ltd., which

recycling society. We consider it important notworldwide with the aim of contributing to increasing the productivity ofuses insect's natural sex pheromone. It is harmless to non-target organisms,

only to comply with laws, ordinances andagricultural crops. We select and combine functions such as import,

and not only reduces the population of the target pest but is also effective on

manufacturing, distribution, wholesale and direct sales by taking into accountpests that enter inside plants and are hard to control.

the characteristics of each market, and we are currently conducting

It can also be expected to reduce the pesticide resistance of pests. This

agrochemical/fertilizer business in about 40 countries.

control method is currently applied by about 60% of orchards in France. In the

In some areas, unfortunately, farmers and distributors inappropriately dispose

European region, we have expanded our sales territory to include Poland,

standards to prevent pollution caused bywastewater, sludge, exhaust and other wastes
but also to reduce environmental impact
through waste reduction, reuse and recyclingof emptied plastic bottle containers and aluminum bags of agrochemicals,

Bulgaria and Turkey.

in order to achieve a sustainable society. We

which can pollute the environment. There are also concerns that agrochemical

In addition, we put our efforts into reducing the amount of conventional

will continue to address relevant issues

remains in such containers could lead to an accident and adversely affect thechemical fertilizer applied and reducing environmental impacts on farmland by

through our business activities.

environment. Agro Amazonia Produtos Agropecuarios Ltda. in Brazil andexpanding the sales of coated fertilizers (allowing farmers to control the pace

Summit Agro Mexico S.A. de C.V. in Mexico involve other companies in theof fertilizer elution and enhance the effective utilization rate of fertilizer

industry to make joint efforts to collect and recycle empty containers ofconstituents, thereby reducing the amount of fertilizer applied) andagrochemicals to promote environmental conservation.

biostimulants (which increase plants’ tolerance to diseases and pests as well

Efforts are also made to reduce the environmental impacts of agrochemicals

as to cold/heat stresses by enhancing their innate immunity and vitality,

themselves,

thereby enabling the use of reduced amounts of fertilizer).

includinginvestment

in

Futureco

Bioscience

S.A.,

a

bioagrochemical manufacturer in Spain, and application of integrated pest
management (IPM), which does not depend on agrochemicals alone and has
low environmental impacts.

Investment in a bio-agrochemical
manufacturer in Spain© 2023 Sumitomo Corporation

Agrochemical project in Brazil(Agro Amazonia Produtos Agropecuarios Ltda.)

Use of apheromone agent

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Group

FeatureEnvironment
Environment

SocialGovernance

ESG
Quantitative
Data

External
Recognition

Commitment
to External
Initiatives

Principles andPolicies

IBC
Stakeholder
Capitalism
Metrics

Prevention of Pollution
Activities║ Activity Description
Reducing the Environmental Impact of Marine Fuel
Since 1954, we have been supplying marine fuel to shipping companies in Japan and abroad. To

We are working with A.P. Moller - Maersk A/S and other partners in a joint study on thecontribute to reductions in the shipping industry’s environmental impact, we are also working to supply

commercialization of supplying ammonia fuel for ships in Singapore, the east coast of

LNG fuel, which emits no sulfur oxides and contains 40-70% fewer nitrogen oxides and 20% less

North America, and the Middle East (Oman). Through this initiative, we aim to contributecarbon dioxide than conventional fuels. Specifically, through a joint venture with Uyeno Transtech Ltd.,to the decarbonization of the shipping industry by creating a comprehensive supply chain

Yokohama-Kawasaki International Port Corporation, and the Development Bank of Japan Inc., wethat includes the supply, transportation, storage, and bunkering of non-GHG emitting

placed an order for an LNG bunkering vessel which is scheduled for completion in FY2023.

marine fuel.

The

International

Maritime

Organization(IMO), a specialized agency of the United
Nations, has formulated a strategy to reducegreenhouse

gas

(GHG)

emissionsfrommaritime transportation globally to zero byaround 2050. In this context, it is believed thatammonia will be the next generation ofalternative

marine

fuels

that

have

the

potential to contribute significantly to reducing
GHG emissions in the shipping industry
because it does not emit CO2 during
combustion. Green ammonia in particular has
the potential to be a major factor in making
the shipping industry carbon-free, as it isproduced solely from renewable electricity,water, and air and emits no CO2 during its
lifecycle.
© 2023 Sumitomo Corporation

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Group

FeatureEnvironment
Environment

SocialGovernance

ESG
Quantitative
Data

External
Recognition

Commitment
to External
Initiatives

Principles andPolicies

IBC
Stakeholder
Capitalism
Metrics

Resource Utilization (Recycling and Circulation Business)
Policy and Concept

Activities

A variety of issues that threaten the sustainability ofsociety have been brought to the fore, such as thegrowing

world

population

and

the

associatedincreases in demand for resources and energy and in
the volume of waste. Rather than continuingtheconventional practices of mass production,
mass consumption and mass disposal, building
circular economy systems through recycling, reuse,
reproduction, resource-saving product development,
and sharing, and reducing dependence on natural
resources are important for

maintaining social

sustainability.
The

Group

resources
sustainable

will make effective use of limited

andcontributeresource

resource-saving

to

the

realizationofrecyclingbyswitchingtotechnologies

andproducts,

working on sustainable procurement ofandnatural║ Activity Description
Tomra Japan: Creating and Deploying a PET bottle Recycling System in Which Consumers Take Part Actively
Reducing the usage of plastic resources while ensuring its effective consumption - importance of this issue is increasing year by
year as a measure for addressing global environmental issues, such as marine litter and global warming. In this context, importanceof resource recovery system is increasing, to materialize and enhance sustainable resource recycling. Tomra Japan is a joint
venture between TOMRA Systems ASA (Norway) and our company. In addition to selling equipment such as reverse vending
machines (RVMs) for the efficient collection of used PET bottles, we have also created and deployed a recycling system whereby
we collect PET bottles from RVMs installed at supermarkets and other retail stores and deliver them to recyclers . RVMs only collect
PET bottles after their caps and labels are removed by the consumers, this enables us to collect high-quality resources with fewer
impurities. Through the supply of high-quality recovered resources, Tomra Japan has been contributing to horizontal recycling, inwhich fresh PET bottles are made from used PET bottles. In addition to such activities, in 2021 the company launched a new brand
named “bottlium” with the aim to contribute to the recycling of PET bottles into polyester clothing. By recycling PET bottles into
clothing that can be repeatedly washed, continuing the horizontal recycling of PET bottles, and encouraging consumers to actively
take part in collecting and recycling higher-quality resources in an efficient manner, Tomra Japan will continue to contribute to the
reduction of environmental burden and the development of a recycling-based society.

resources.
ESG Quantitative Data on Resources and Waste

Official Brand Web Site

Circulation recycling system with RVM as a platform© 2023 Sumitomo Corporation

Reverse Vending
Machine“bottlium” – New brand of recycled PET bottle by
Tomra Japan. Made from the high-quality
resources (used PET bottles) collected by Tomra
Japan, through chemical agent-free aqueous
cleaning process.
The highest quality expands the possibilities forvarious applications such as hollow fibers.
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Group

Environment
Environment

FeatureSocialESG
Quantitative
Data

GovernanceCommitment
to External
Initiatives

External
Recognition

Principles andPolicies

IBC
Stakeholder
Capitalism
Metrics

Resource Utilization (Effective Use of Forest Resources)
Forests are a circulative resource that can be permanently regenerated through continuous planned logging and regrowth. In addition to providing diverse food sources and timber products in eachregion, appropriate management of these resources contributes to the conservation of biodiversity and mitigation of climate change by capture and storage of CO2. The Sumitomo Corporation
Group, conducting business using these precious resources, implements sustainable forest management to maximize the environmental and social value provided by them, while striving tostrengthen governance to prevent deforestation, forest degradation, and human rights violations.
Social Value

Environmental Value- Conservation of biodiversity through proper forest management- Job creation in the region and vitalization of the local economy- Capture and storage of CO2 through proper forest management and reforestation- Stable supply of high-quality wood products- Utilization of unused wood such as wood from thinning- Stable supply of electricity from renewable energy sources, unaffected by weather conditions,through biomass power generation businessTrading business of wood products for building materials andwood chips for paper manufacturing

Forestry BusinessSocial aspects

Environmental aspects-Biodiversity conservation through proper forest
management-Job creation in the local community-Capture and storage of CO2 through proper forest
management and reforestation-Contribution to building local communities,
including philanthropic activities

Manufacture

Environmental aspects

Social aspects- Trading of products with low environmental
impact, and fixation of carbon absorbed by thewoods through distribution of these products- Stable supply of wood materials- Trading of products with traceability

Grow

Use

Trading business of biomass fuels

Forestmanagement
cycle

Our forest management
maintains the ecosystem forexample inhabited by wild
horsesHarvestPlant
The forest area of the North Island in New
Zealand is as vast as 80% of the 23 wards
in Tokyo

Sustainability challenges in forest dependent business- Enhance sustainable procurement- Thoroughly implement corporate governance, including group companies- Manage social and environmental risks in the supply chain- Reduce CO2 emissions from manufacturing and transportation phases, etc.

© 2023 Sumitomo Corporation

Applying logging methods (e.g.,ribbon cutting) that allows naturalregeneration by leaving the parent
trees intact

Biomass power
generation business

Environmental aspects

Environmental aspects- Conservation of forests through effective use of unusedmaterials

Power source that contributes to climate change mitigation
using renewable resources as fuel- Trading of products with traceability

Social aspects- Capture and storage of CO2 through proper forest
management and reforestation- Stable supply of electricity from renewable energy sources,
unaffected by weather conditions

Social aspects- Revitalization of the forestry industry and expansion of forest
maintenance through the use of domestic timber- Stable supply of high-quality, traceable wood chips andpellets to customers

Strengthen corporate governanceto maximize corporate value
Implement measures to strengthen governance- Revitalization of local economy and job creation in the region

Measures to solve sustainability challenges in business- Established "Forest Management Policy" and "Sourcing Policy for Forest
Products" and guidelines- Monitor and improve business operations in line with the above policies andguidelines- Implement due diligence by utilizing international certification systems andconducting audits using satellite imagery etc.
-Collaborate with suppliers
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Group

FeatureEnvironment
Environment

SocialGovernance

ESG
Quantitative
Data

External
Recognition

Commitment
to External
Initiatives

Principles andPolicies

IBC
Stakeholder
Capitalism
Metrics

Resource Utilization (Effective Use of Forest Resources)
We established the Sumitomo Corporation Group Forest Management Policy and Sumitomo Corporation Group Sourcing Policy for Forest Products in March 2022. Furthermore,in order to reinforce due diligence to mitigate risks, we also set Operational Guidelines for putting the policies into actions. See p.72 for the results of monitoring during FY2022.
Policy and Concept

Sumitomo Corporation Group Forest Management Policy
Scope of application

Operational guidelines for Forest Management Policy
Risk assessment and monitoring:•

Sumitomo Corporation Group Forest Management Policy before starting any new

Forestry business directly managed by Sumitomo Corporation and its Consolidated subsidiaries. In addition, otherforest management. In addition, we will continue monitoring the status of ourforestry business that Sumitomo Corporation and its subsidiaries are involved in management are included if
determined to be material.

GovernanceThis policy was approved by the Management Council and the Board of Directors of Sumitomo Corporation. If any
serious issues arise in implementing this policy, measures and corrective action plans will be discussed at the
Corporate Sustainability Committee and reported to the Management Council and the Board of Directors.

environmental and social commitments after the project started.
Certification:•

Environmental aspects:
We will not engage in development that leads to gross deforestation, or the conversion of natural forests intoplantations for forestry business.
We will not develop forests with high conservation value (HCVF), or forests with high carbon stock (HCSF) suchas in peatlands. We will work to protect endangered species and reduce the impact of our forestry business on
ecosystems. We will conduct thorough management to prevent forest fires and will not conduct any operations
which can cause forest fires. We will engage in forest conservation and reforestation.
Social aspects:
We will conduct our forestry business with consideration for human rights in accordance with the Sumitomo
Corporation Group’s Human Rights Policy.
We will respect human rights as stipulated in the “International Bill of Human Rights” and the International Labor
Organization’s “Declaration on Fundamental Principles and Rights at Work,” and we will operate in accordancewith the “United Nations Guiding Principles on Business and Human Rights.”
We will respect international norms related to the rights of indigenous peoples, such as the “United Nations
Declaration on the Rights of Indigenous Peoples” and the “principle of Free, Prior and Informed Consent (FPIC).”We will support local communities through creating employment and offering educational programs related toforests.

© 2023 Sumitomo Corporation

In addition to the above monitoring, we will make effective use of the internationallyrecognized forest management certification system for the forests managed by theGroup and promote obtaining certification.

Stakeholder dialogue:•

In order to prevent global deforestation and forest degradation, we will promote thesustainable use of forest resources in society through dialogue with our stakeholders

Commitment
Based on the principles of zero deforestation and respect for human rights, Sumitomo Corporation will strive toimplement the following in its sustainable forest management, with the cooperation of its Group companies.

We will conduct environmental and social risk assessments in accordance with thein the regions where our forests are located.
•

We will develop a grievance mechanism* to respond to issues raised by our
stakeholders.

Disclosure:•

In order to implement forest management with high level of transparency, we will
strive to disclose information on our initiatives in accordance with the Sumitomo
Corporation Group Forest Management Policy.

Reviewing process of the Guidelines:•

The Business Units will annually report on implementation of the policy to the
Corporate Sustainability Department.

•

Based on the report, the Corporate Sustainability Department will annually review
the necessity of updating the Operational Guidelines.

•

If any serious issues arise in implementing this policy, measures and corrective
action plans will be reported to the Management Council and the Board of Directors.

* A process that employees, local residents or other stakeholders can use to lodge
complaints regarding human rights violations and other issues related to enterprise’sbusiness activities including its supply chain, for resolving such issues

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FeatureEnvironment
Environment

SocialGovernance

ESG
Quantitative
Data

External
Recognition

Commitment
to External
Initiatives

Principles andPolicies

IBC
Stakeholder
Capitalism
Metrics

Resource Utilization (Effective Use of Forest Resources)
Policy and Concept

Sumitomo Corporation Group Sourcing Policy for Forest Products
Scope of application
Logs, wood products (plywood, lumber, veneer, laminated timber), wood chips and wood pellets traded by Sumitomo
Corporation and its Consolidated subsidiaries.

Operational guidelines for Sourcing Policy for Forest
Products
Monitoring:•Group Sourcing Policy for Forest Products,” we will promote the use of products thathave been certified by reliable international forest management certification systems.

GovernanceThis policy was approved by the Management Council and the Board of Directors of Sumitomo Corporation. If any
serious issues arise in implementing this policy, measures and corrective action plans will be discussed at the
Corporate Sustainability Committee and reported to the Management Council and the Board of Directors.

In order to procure forest products in accordance with the “Sumitomo Corporation

Additionally, we will request detailed information from suppliers through audit activities
such as questionnaires and on-site visits.
•

In order to ensure compliance with the Commitment, we will conduct supplier risk
assessments and consult with non-compliant suppliers to request improvements. If
no improvement is observed, we will consider reviewing the transaction.

Commitment

Stakeholder dialogue:

In accordance with the principles of zero deforestation and respect for human rights, Sumitomo Corporation will strive
together with its Group companies to source products based on this policy while cooperating with suppliers andcustomers.

•

Environmental aspects:
We will not procure materials sourced from lands associated with destructive forest use or development which leads togross deforestation causing significant environmental impacts.
We will not procure materials sourced from lands associated with serious environmental issues including the destructionof forests with high conservation value (HCVF) or high carbon stock (HCSF) such as in peatlands.
We will not procure materials produced from genetically modified wood.
We will procure in compliance with the Washington Convention to protect endangered species.

•

Social aspects:
We will procure products harvested in forests where human rights are respected in accordance with the Sumitomo
Corporation Group’s Human Rights Policy.
We will respect human rights as stipulated in the “International Bill of Human Rights” and the International Labor
Organization’s “Declaration on Fundamental Principles and Rights at Work,” and we will operate in accordance with the“United Nations Guiding Principles on Business and Human Rights.”
We will respect international norms related to the rights of indigenous peoples, such as the “United Nations Declarationon the Rights of Indigenous Peoples” and the “principle of Free, Prior and Informed Consent (FPIC).”We will not procure materials produced from illegally logged wood.

In order to prevent global deforestation and forest degradation, we will promote thesustainable use of forest resources in society through dialogue with our stakeholders,
including suppliers and customers.
We will develop a grievance mechanism* to respond to issues raised by stakeholders.

Disclosure:•We will strive to disclose the status of our initiatives based on the “Sumitomo
Corporation Group Sourcing Policy for Forest Products,” including reporting on
monitoring results.

Reviewing process of the Guidelines:•

The Business Units will annually report on implementation of the policy to the•Based on the report, the Corporate Sustainability Department will annually review the

Corporate Sustainability Department.
necessity of updating the Operational Guidelines.
•

If any serious issues arise in implementing this policy, measures and corrective actionplans will be reported to the Management Council and the Board of Directors.

* A process that employees, local residents or other stakeholders can use to lodge
complaints regarding human rights violations and other issues related to enterprise’sbusiness activities including its supply chain, for resolving such issues© 2023 Sumitomo Corporation

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FeatureEnvironment
Environment

SocialGovernance

ESG
Quantitative
Data

External
Recognition

Commitment
to External
Initiatives

Principles andPolicies

IBC
Stakeholder
Capitalism
Metrics

Resource Utilization (Effective Use of Forest Resources)
Results

Activities▌ Sustainable Forest Management and Initiatives to Source Forest Products
Sumitomo Corporation Group established a Forest Management Policy and a Sourcing Policy for Forest

We are working toward our goal of actively promoting the sale ofcertified timber. The following table shows our actual use of certified

Products in March 2022 as part of efforts toward sustainable forest management and sourcing of forest

timber in New Zealand (Summit Forests New Zealand) during

products. We spoke to group companies conducting forest management to understand their response to

FY2022.

mitigating environmental and social risks, including forest conservation, mitigation of impacts on ecosystems,
and consideration of local residents, and we confirmed that activities conducted during FY2023 were in linewith our policies. We also used an annual questionnaire and on-the-spot surveys of our forest product suppliers

FY2022 Results
Certified log (New Zealand)

231 thousand m3

to confirm compliance during FY2023 with the commitments of our sourcing policy.

║ Activity Description
New Zealand Timber BusinessIn New Zealand, a sustainable supply of timber resources is provided on a 30-year cycle through aharmonious arrangement with local communities under the environmentally friendly forest management
system of planting trees, growing them, cutting them down, and replanting them. In the approximately
66,000 hectares of forest owned by Summit Forests New Zealand Limited., besides protecting water
cultural sites, and indigenous biodiversity conservation
resources,
areas, the company has also forged friendly relationships
with the indigenous Māori people in the course of runningits business. Moreover, much of the company’s forest
holdings are FSC® (FSC-C112972) certified, which offers
objective proof that the company is managing the forest
appropriately.
Forest owned by SFNZ
Please see here for more details on the Forestry business in New Zealand.

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Quantitative
Data

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Recognition

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to External
Initiatives

Principles andPolicies

IBC
Stakeholder
Capitalism
Metrics

Biodiversity
Policy and Concept

Sumitomo Corporation Group’s business activities largely depend on the wealth of Earth’s diverse livingorganisms as well as from the biodiversity that is generated by their many networks. Therefore, ourEnvironmental Policy recognizes placing great importance on preserving the environment, including the natural
ecosystem and biodiversity as an important issue for us. We make efforts to understand how our businessactivities that may have a significant impact on biodiversity depend on such biodiversity, as well as what kind of
impact such activities have on biodiversity, in order to minimize their impact on ecosystems and contribute to
ecosystem restoration.
In the process of reviewing new projects and monitoring existing projects, we also assess social andenvironmental risks including impact on ecosystems, and check the status of management and improvement.
Sumitomo Corporation Group Environmental Policy

Activities

Trial Analysis Based on TNFD’s Beta Framework
In June 2022, we endorsed the TNFD* and joined the TNFD Forum supporting the TNFD activities. We recently conducted an analysis based on the TNFD’s Beta v0.4
framework to understand the dependencies and impacts of biodiversity in our business activities and to organize our current initiatives and establish new measures for the
future. We are also feeding back the insights gained through our analysis to the TNFD.
Details of Our Trial Analysis
We conducted our trial analysis in line with procedures of the LEAP analysis, which is a technique recommended by the TNFD. This time, we conducted an in-depth
analysis of our forestry business in New Zealand, with separate analysis of the characteristics of each of the four sites where we do business in the country. Details of theseanalyses are on the following pages.
L: Locate
From an overview of all company
businesses, narrow down the businessto be analyzed to the New Zealandforestry business only

E: Evaluate

A: AssessAnalyze nature-related

Identify the natural capital-related highdependencies and impacts of themateriality risks and opportunities in

New Zealand forestry businessthe New Zealand forestry business

P: Prepare
Establish business targets for thematerial risks and opportunities in
the New Zealand forestry business* Taskforce on Nature-related Financial Disclosures. A global initiative aimed to develop and deliver a risk management and disclosure framework for organizations to report and act on evolving nature-related risks.
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Quantitative
Data

External
Recognition

Commitment
to External
Initiatives

Principles andPolicies

IBC
Stakeholder
Capitalism
Metrics

Biodiversity (Trial Analysis Based on TNFD’s Beta Framework)▌ Identifying a Business Case for a Trial Analysis
Using the ENCORE analysis tool recommended by the TNFD, we conducted a primary screening of each of our business divisions and confirmed that businesses related to metal
resources refining, oil drilling, agricultural products, real estate, and forestry have the highest risk scores. In addition, the TNFD beta framework has categorized Renewable
Resources and Alternative Energy, including forest management and biofuel-related businesses, as a priority sector that is more likely to be financially impacted. Based on thesefindings, we determined that the upstream supply chain, which includes material procurement, is an area of high nature-related dependencies, impacts, and risks. Therefore, we
decided to conduct this trial analysis on Summit Forests New Zealand (SFNZ), our forestry company in New Zealand.

Company details

Company
Name

Summit Forests New Zealand Ltd.

Year offounding

2013

Business
Description

Management of owned forests and sale of timber harvested by thecompany or others to domestic lumber mills or export thereof

Capital137million NZD(approx. ￥10.2billion) / Ownership: 100%

Offices

Auckland, Kaitaia, Gisborne, Coromandel

Harvestablearea

50,000hectares (Main species under cultivation: Radiata pine)
Please see here for more details on the Forestry business in New Zealand.

▌ Confirming Nature-related Dependencies and Impacts of Forestry Business in GeneralAs part of our analysis of the forestry business, we started by using the TNFD-recommended ENCORE analysis tool,
academic papers, and other methods to confirm dependencies and impacts associated with a typical forestry business, andwe found that this business is dependent on climate and soil.
We also learned that the forestry business in New Zealand is particularly dependent on a “stable climate” and “soilsuitability.” On the other hand, when looking at the impact that this business has on nature, we found that excessive
harvesting and excessive use of chemicals in this business carries risks for ecological destruction of the surrounding
environment, and therefore we organized these risks into “cultivation and harvesting” and “fertilizers and pesticides.”© 2023 Sumitomo Corporation

Dependencies

Impacts

Stable climate

Cultivation andharvesting

Soil suitability

Fertilizers andpesticides

Possible natural capital-related dependencies
and impacts of a typical forestry business in
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Stakeholder
Capitalism
Metrics

Biodiversity (Trial Analysis Based on TNFD’s Beta Framework)▌ Identifying Nature-related Risks for SFNZ and Evaluating their Materiality
1) Business Risks Related to Nature
We identified 9 associated risks as a result of applying the impact drivers, state of nature, and ecosystem services, indicated by the TNFD
beta framework, to SFNZ’s forest operation. We also referenced the forestry business risks illustrated by the World Business Council for
Sustainable Development (WBCSD).
Sub-Categories Within TNFD’s Beta Framework
ImpactDrivers

State ofnatureEcosystem/Services
dependencies

 Terrestrial ecosystem use
 Soil pollutants
 Water pollutants
 Water use and replenishment
 Biological alterations
 Ecosystem extent
 Ecosystem condition
 Species population
 Species extinction risk

Example: Risk analysis of impacts on threatened
species, with SFNZ-owned forest areas (left) andbiodiversity hotspots (right)(Tool: IBAT)

9 Nature-related Risks for SFNZ’s Forestry Business9 business risks
associated with
SFNZ’s business

Biomass provisioning, including genetic material
Water purification, water flow regulation, maintenance and management
Soil quality regulation, soil and sediment retention, solid waste remediation
Pollination, pest and disease control, nursery population or habitat
maintenance Flood and storm mitigation, noise attenuation, other regulating services
 Global or local climate regulation, rainfall pattern regulation, air filtration

Risks related to harvesting anddevelopment

Risks related to impacts on
threatened species

Risks related to pesticides andfertilizers

Risks related to introduced
species

Risks related to water

Risks related to CO2 emissions

Risks related to soil quality

Risks related to infringement of
the rights of indigenous peoples

Risks related to natural disasters

2) Analysis of Each Business Site and Identification of Material Business Risks
Using IBAT and other tools recommended by the TNFD, we conducted a risk analysis of the nine business risks
that we identified in each of the four areas where SFNZ operates in New Zealand, and then applied a qualitative
matrix evaluation to each of them along two axes—degree of impact on business (financial and legal

4 Nature-related Material Risks Identified in SFNZ’s Forestry Business
Risks related to harvesting anddevelopment

Risks related to impacts on
threatened species

Risks related to natural disasters

Risks related to infringement of
the rights of indigenous peoples

perspectives), and likelihood of impact occurring (relevance of business and risks). As a result, we identified fourmaterial business risks for SFNZ’s business. They are “Risks related to harvesting and development,” “Risks

related to natural disasters,” “Risks related to impacts on threatened species,” and “Risks related to infringement of* See p.77 for indicators and targets of initiatives to conserve natural capital related
to the material risks identified.

the rights of indigenous peoples.”© 2023 Sumitomo Corporation

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Quantitative
Data

External
Recognition

Commitment
to External
Initiatives

Principles andPolicies

IBC
Stakeholder
Capitalism
Metrics

Biodiversity (Trial Analysis Based on TNFD’s Beta Framework)▌ Identifying Nature-related Business Opportunities for SFNZ and Evaluating their Materiality
1) Business Opportunities Related to Nature2) Identification of Material Business Opportunities

Using the same approach as when identifying business risks, we applied the sub-categories, detailed in the TNFD beta

We applied a qualitative matrix evaluation to each of theframework, to the forestry business and identified six business opportunities.

business opportunities that we identified along two axes—
degree of impact on business (financial and legal perspectives),

Sub-Categories and Opportunities Within TNFD’s Beta Framework

6 Business Opportunities for SFNZ’s
Forestry Businessand likelihood of impact occurring (relevance of business andrisks). As a result, we identified three material business
opportunities for SFNZ’s business. They are “Shift in timberrelated markets (CO2 absorption credits),” “Improvement of

Shift in timber-related markets (CO2absorption credits)

 Markets

Business
performance
opportunities Capital flow and financing
 Products/services
 Resource efficiency

Classifications
associated with
SFNZ’s business

Creation of new value throughtechnological innovation, etc.
Improvement of timber productivity

timber productivity” and “Shift in awareness towards timber.”
3 Material Business Opportunities Identified

Shift in timber-related markets(CO2 absorption credits) Reputational capital

Shift in awareness towards timber
Improvement of timber productivity
Sustainable
performance
opportunities

 Sustainable use of natural
resources Ecosystem protection,
restoration and regeneration

Use of alternative tree species
Protection, recovery, and regeneration of
ecosystems

Shift in awareness towards timber▌ Examining Metrics and Targets
Based on the material risks and opportunities that we identified, we examined metrics and targets for SFNZ’s business operation. As a result, we set targets for future business
operations and illustrated examples of typical business opportunities. Please refer to the following pages for the details.

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Quantitative
Data

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Recognition

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to External
Initiatives

Principles andPolicies

IBC
Stakeholder
Capitalism
Metrics

Biodiversity (Trial Analysis Based on TNFD’s Beta Framework)
Business Targets Related to Material Risks
For SFNZ’s business risks that we considered to be particularly high risk for the company, with a high likelihood of occurring and a high degree of impact on business, weestablished specific business targets based on the Kunming-Montreal Global Biodiversity Framework (GBF) and in light of initiatives in SFNZ’s Forest Management Plan.
The company is already implementing many initiatives that contribute to achieving these targets and will continue the efforts.
Risks
Business-related Material Risks

Infringement of therights of indigenous
peoples

Reference GBF
Indicators
 Target 22

Targets
 Develop and implement management processes that takethe rights of indigenous peoples into accountInitiatives already underway and contributing to achieving the targets◉ Conduct extensive business partnerships with indigenous peoples◉ Create employment opportunities and conduct vocational training
for local communities◉ Implement measures to support landowners become sustainable
forest managers

Impacts on
threatened species

 Target 4

 Implement initiatives to prevent species extinction and todramatically reduce extinction risk

◉ Develop operational guidelines for the protection of threatened
species and identify rare and threatened species that could befound in the forest areas◉ Develop and share operational guidelines in the event of an
employee discovering threatened species

 Manage actions to maintain and restore the genetic
diversity of native species◉ Conduct ecological surveys to monitor kiwi bird populations◉ Conserve rare animals and plant species and implement biocontrols in cooperation with nature protection authorities

Harvesting anddevelopment

 Target 1

Natural disasters

 Target 11

 Develop and implement management processes that
respect the rights of indigenous peoples and local
communities
 Develop measures to reduce river, flood, and fire risks◉ Develop measures with local community representatives to mitigate
impacts of harvesting plans on biodiversity◉ Participate in and advocate for development and amendment ofrules related to operating forestry businesses with a focus on riverand flood risk measures led by New Zealand authorities◉ Develop plans for fire prevention◉ Maintain firebreaks© 2023 Sumitomo Corporation

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FeatureEnvironment
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Quantitative
Data

External
Recognition

Commitment
to External
Initiatives

Principles andPolicies

IBC
Stakeholder
Capitalism
Metrics

Biodiversity (Trial Analysis Based on TNFD’s Beta Framework)
Material Business Opportunities
For SFNZ’s business opportunities that we consider to be particularly material for the company, with a high likelihood of occurring and a high degree of impact on
business, we recognized the following potential business opportunities.
║ Potential business opportunities (examples)
Shift in timber-related markets(CO2 absorption credits)
Official participation in the New
Emissions Trading Scheme (NZ ETS)

Shift in awareness towards timber
ZealandMaintaining and promoting FSC certification
In New Zealand, the government has establishedImprovement of timber productivity
Digitalization
operations

andsmartificationinforestUsing IoT in the forestry business can help to

It is said that obtaining and selling credits for thestrict controls on forest management, and a

CO2 absorption value of existing forest resources

government-led legal guarantee system is also

not only creates a new source of revenue, but also

being developed. Furthermore, the entire country iscontributes to climate change measures andcurrently acquiring and promoting FSC certification.

quality timber.

Large portions of forest area owned by SFNZ

We are using a geographical information systembiodiversity conservation.
We are forecasting an expansion of this new source

already have FSC certification, hence it is possibleof revenue by leveraging the absorption capacity ofthat a shift in social and consumer awareness will

the 66,000 hectares of forest area owned by SFNZ

increase demand for certified timber and contributeto participate in the NZ ETS.

to growth of revenues.

appropriately understand the state of a forest’s
health, which leads to stable production of high(GIS) to understand the topography of the 66,000
hectares of forest area owned and managed by
SFNZ, but adoption of technologies such as laser
measurement of our forest resources may lead to
growth of revenues.

▌ Insight Earned from the Trial Analysis (Our feedback to the TNFD)
In light of the processes and results of our trial analysis, we provided the following feedback to the TNFD to improve the usefulness of information provided to investors
through TNFD framework-based disclosures.
1. Due to lack a of normative scenarios, it is difficult for a company to set and disclose its own scenarios for each of its businesses.
2. As identifying priority areas for a conglomerate company which operates in various sectors is a challenge, a specific LEAP analysis guidance for such companies
would be desirable.
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Quantitative
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Initiatives

Principles andPolicies

IBC
Stakeholder
Capitalism
Metrics

Biodiversity
Activities║ Activity Description
Ambatovy Project Targeting “No Net Loss, Net Gain”
The Ambatovy Project in the Republic of Madagascar, which is one of the largest mine development

Furthermore, as part of this biodiversity program, we are collaborating with governments, local

projects in the world, began development in 2007 to expand the supply of nickel, cobalt and other metals.

communities, and conservation and development NGOs to apply the IFC and BBOP standards while

Establishing the environmental target of “no net loss, net gain,” it is conducting a unique biodiversity

also promoting a large-scale biodiversity offset program. This is an approach to mitigate impacts of the

program.

development on ecosystems by restoring or creating another ecosystem. Specific measures include

In the Ambatovy Project, many new facilities, such as mining sites, refinery plants and pipelines, need tobe constructed and operated, which poses substantial impacts on the surrounding environment.
Particularly in Madagascar, there remains a globally precious natural environment where as many as
1,000 species of endangered animals are living. Giving careful consideration to these natural habitats indeveloping and operating the project, the biodiversity program accounts for the impact on every site. In
developing and implementing plans for the project, special emphasis is placed on environmental
management in compliance with not only Madagascar national laws but also various guidelines, such as

the conservation of a forest area of 6,800 ha in the Ankerana area, which has an ecosystem similar tothat of the development site of the project. In an attempt to offset the net loss of biodiversity, we have
implemented measures to protect four conservation areas of more than 14,000 ha in total, equivalent
to about nine times the affected areas, such as protection of areas near the mine site, tree replanting
after the installation of pipelines, and tree replanting on the mine site after the closure of the mine. For
this biodiversity program and its offsets, we are taking a comprehensive approach that controls not
only the impact of businesses, but impacts received prior to them as well.
Ambatovy Sustainability Report2021

the World Bank safeguard policy, the International Financial Corporation's (IFC) Performance Standards,
the World Health Organization (WHO) standards, and the Equator Principles. In line with the ISO 14001
standard, we are also managing according to the Ambatovy Environmental Management System (EMS).
Under the Ambatovy EMS, we identified a number of priority areas, including flora and fauna habitats
and marine ecosystems, and when developing, operating, and closing mines, we formulate management
plans for business-related sites, such as plants and port facilities, and work according to those plans. For
example, in developing the mining area, we created a buffer zone around the mining site of about 1,600

Coquerel's Sifaka (Propithecus coquereli), endangered species

ha to ensure protection of wild animals. When trees are cut down to develop the mine site, felled trees
are left on site for a while so that animals inhabiting these trees can move into the buffer zone. We also
conduct ecosystem surveys jointly with international environmental NGOs. If endangered or otherspecies that need to be protected are identified in such a survey, we adopt various programs designed
to reduce impacts on ecosystems, for example, relocation of such species to a sanctuary and use of afish farming system.
Reforestation after logging© 2023 Sumitomo Corporation

Diademed sifaka(Propithecus diadema),critically endangered species

Survey and conservation of endangered plants

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Metrics

Biodiversity
Activities║ Activity Description

BBOP participating through the Ambatovy Project（Business and Biodiversity Offsets Program）

Business and Biodiversity Offsets Program (BBOP) is an initiative to prepare international standards regarding biodiversity║ Activity Description
Bird-strike Prevention in Wind Power Generation

offsets, participated in by companies, governments, NGOs and other specialists. The BBOP initiative ended successfully andDorper Wind Farm generates electricity using wind in a

is now recognized as an international standard for biodiversity offsets that is also referred to by the Convention on Biologicalmountainous area of about 130 km2 in Eastern Cape,

Diversity. The Ambatovy Project in Madagascar continues to comply with this standard while maintaining a balance between

South Africa. In the Doper wind power generation project,conserving biodiversity and the lives of local residents. (Refer to the previous page.)measures to prevent bird strikes are implemented.

BBOP Principles on Biodiversity Offsets

Windmills are installed in pastures and bird strikes are

1

Adherence to the mitigation hierarchy: A biodiversity offset is a commitment to compensate for significant residual adverse impacts
on biodiversity identified after appropriate avoidance, minimization and on-site rehabilitation measures have been taken according to
the mitigation hierarchy.

caused by birds that flock to feed on the carcasses ofLimits to what can be offset: There are situations where residual impacts cannot be fully compensated for by a biodiversity offset

remove animal carcasses found in the power plant.

2 because of the irreplaceability or vulnerability of the biodiversity affected.
3

Landscape Context: A biodiversity offset should be designed and implemented in a landscape context to achieve the expected
measurable conservation outcomes taking into account available information on the full range of biological, social and cultural valuesof biodiversity and supporting an ecosystem approach.

4

No net loss: A biodiversity offset should be designed and implemented to achieve in situ, measurable conservation outcomes that canreasonably be expected to result in no net loss and preferably a net gain of biodiversity.

5

Additional conservation outcomes: A biodiversity offset should achieve conservation outcomes above and beyond results that would
have occurred if the offset had not taken place. Offset design and implementation should avoid displacing activities harmful tobiodiversity to other locations.

livestock and other animals. We therefore ensure to
We also hire local residents to visually confirm if there isany endangered bird species circling around thewindmills and, if detected, to send an emergency notice
to stop the operation of the windmills. It is our aim toachieve a harmonious balance between wild animal
conservation and wind power generation business.

Stakeholder participation: In areas affected by the project and by the biodiversity offset, the effective participation of stakeholders

6 should be ensured in decision-making about biodiversity offsets, including their evaluation, selection, design, implementation andmonitoring.

7

Equity: A biodiversity offset should be designed and implemented in an equitable manner, which means the sharing among
stakeholders of the rights and responsibilities, risks and rewards associated with a project and offset in a fair and balanced way,respecting legal and customary arrangements. Special consideration should be given to respecting both internationally and nationallyrecognised rights of indigenous peoples and local communities.

8Long-term outcomes: The design and implementation of a biodiversity offset should be based on an adaptive management approach,incorporating monitoring and evaluation, with the objective of securing outcomes that last at least as long as the project’s impacts andpreferably in perpetuity.
Transparency: The design and implementation of a biodiversity offset, and communication of its results to the public, should be

9 undertaken in a transparent and timely manner.

Science and traditional knowledge: The design and implementation of a biodiversity offset should be a documented process

10 informed by sound science, including an appropriate consideration of traditional knowledge.
© 2023 Sumitomo Corporation

Dorper Wind Farm Pty Ltd. in South Africa

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Biodiversity
Activities║ Activity Description
Bird Friendly® Coffee
Sumitomo Corporation Group has imported and supplied Bird In 2019, this project was recognized by the Japan Committee
Friendly®-certified coffee (BF®-certified coffee) since 2004 as of the International Union for Conservation of Nature andpart of our biodiversity-friendly activities, which ensures a Natural

Resources(IUCN)

asacooperative

project

stable income for farmers. Since FY2014, SC Foods Co., Ltd. authorized by the Japan Committee for the United Nations
started dealing in BF®-certified coffee. BF®-certified coffee is Decade on Biodiversity (UNDB-J)*2. This authorization
grown under the shade of natural forest trees to conserve the means that the project is an important activity to conserve
environment and provide migratory birds a place to rest. The biodiversity as well as an activity that has achieved results
BF certification was created by the Smithsonian Migratory toward meeting the Aichi Biodiversity Targets*3. We will
Bird Center (SMBC). As of June 2023, 49 farms and continue our efforts to contribute to protecting migratory birds
agricultural cooperation in 12 countries*1 are certified and and ecosystems through this project.
part of the proceeds are used for SMBC's research, surveys *2 The committee was established in September 2011 to encourageand conservation activities.

the participation and cooperation of all sectors in Japan to promote
efforts to conserve biodiversity and ensure its sustainable use.

*1 12 countries: Ethiopia, Peru,*3 New international targets to conserve biodiversity, which wereEl Salvador, Columbia,

adopted by the 10th Conference of Parties (COP10)

Guatemala, Nicaragua, Bolivia,
Honduras, India, Thailand,
Mexico, Venezuela

Harvest of BF®-certified coffee© 2023 Sumitomo Corporation

This project has been recognized as a project recommended by
the Japan Committee for the United Nations Decade on
Biodiversity (UNDB-J).

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IBC
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Capitalism
Metrics

Human Rights
Policy and Concept
In May 2020, we established the "Sumitomo Corporation Group’s Human Rights Policy" that represents our commitment to respect human rights through human rights due
diligence, stakeholder engagement, education and so on, in order to fulfil our corporate social responsibility and to grow sustainably with society.

Sumitomo Corporation Group’s Human Rights Policy
Sumitomo Corporation declares in its management principles that it aims to be a global organization that contributes broadly to society and places prime importance on utmost respect for theindividual. We will respect human rights to fulfill our corporate social responsibility, and pursue sustainable growth with society.
Sumitomo Corporation became a signatory in 2009 to the “Ten Principles of the United Nations Global Compact”, which advocates for values common to its own management principles,
including those regarding human rights and labor. We also respect the “International Bill of Human Rights” and the International Labor Organization’s “Declaration on Fundamental Principles
and Rights at Work”, and we operate in accordance with the “United Nations Guiding Principles on Business and Human Rights”.
1. Scope of application
Sumitomo Corporation endeavors to ensure that all executives and employees within its group fulfill their responsibility to respect human rights. In addition, we encourage our suppliers andbusiness partners to accept, understand and practice this policy so that we can work together to fulfill our social responsibilities, including respect for human rights in the relevant value chain.
2. Human rights due diligence
Sumitomo Corporation strives to identify and to prevent or mitigate any adverse impact on human rights through the application of human rights due diligence processes. Where we identify thatour group’s practices have caused or contributed to an adverse impact on human rights, we will endeavor to take appropriate remedial measures.
3. Compliance with relevant laws
Sumitomo Corporation will comply with national and regional laws and regulations applicable to its group operations. When those laws and regulations are incompatible with internationallyrecognized human rights, we will seek to employ measures to respect international human rights norms.
4. Stakeholder engagement
Sumitomo Corporation will seek to improve and progress human rights measures through engagement and dialogue with relevant stakeholders.
5. Education
Sumitomo Corporation will appropriately educate its executives and employees within its group in order to ensure that this human rights policy is understood and implemented effectively.
6. Reporting
Sumitomo Corporation will disclose appropriate information regarding its efforts to respect human rights.

© 2023 Sumitomo Corporation

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Human Rights▌ Human Rights Due Diligence
In accordance with the Sumitomo Corporation Group Human Rights Policy, Sumitomo Corporation began human rights due diligence in 2020 so that we can identify, prevent, and correct how we address any adverse humanrights impact that the Group business activities may cause or contribute to. In FY2021, we expanded applicability to all our businesses, and started conducting human rights due diligence by the business unit, according toour medium-term goal, of “Strengthen risk analysis in human rights due diligence to accurately assess risks in all businesses, including the supply chain, and implement risk mitigation measures by 2025.” Following on
identifying and assessing risks in the Media & Digital Business Unit and Living Related & Real Estate Business Unit in FY2021, we identified and assessed human rights risks in all Strategic Business Units (SBUs) of theInfrastructure Business Unit and Mineral Resources, Energy, Chemical & Electronics Business Unit in FY2022. Our human rights due diligence is conducted through a process in accordance with international guidelines
including the United Nations Guiding Principles on Business and Human Rights, United Nations Guiding Principles Reporting Framework, and OECD Due Diligence Guidance for Responsible Business Conduct.
<Process of Human Rights Due Diligence in Business Units>
After conducting a desktop survey in which we identified human rights issues,
mainly but not limited to our eight salient human rights issues and referred to theactual cases of human rights risks which occurred in global business activities of

Identification
Identification ofof Eight
Eight Salient
Salient Human
Human
RightsRights Issues
Issuesourselves or other companies, we have been conducting human rights due
diligence starting from business units whose businesses are considered to haverelatively higher human rights risks.
Interviewing all related SBUs of both business units with the support from outside
experts, we confirmed the situation in each business and actual human rights risks
including the impact on stakeholders, such as local residents and others related tothe supply chain and business activities of each business. Besides, we identified
potential risks that could be anticipated and discussed the status of any responses
being taken. In light of these findings, and from the perspectives of the possibility tomaterialize human rights risks which we identified and their severity if materialized,
we prioritized SBUs, or individual businesses within SBUs, to focus our prevention
and mitigation effort on. With the cooperation of the Corporate Sustainability

Identification
Identification andand Assessment
Assessment ofof Human
Human
RightsRisks
inBusiness
Units
Rights Risks in Business Units

Desktop surveys
・ Desktop surveys
・ Discussions with exerts on business and human rights
・ Discussions with exerts on business and human rights
・ Interviews with all SBUs of each business unit
・ Interviews with all SBUs of each business unit
→ Identification of businesses which need to be→ Identification of businesses which need to be prioritizedprioritized

Health and safetyof local residents

Freedom of associationand the right tocollective bargaining

Land rights

Forced laborand child labor

Discriminationand harassment

Occupational
health and safety

Personal information
PrivacyPrevention and Mitigation of Human
Rights Risks
・ Incorporation in the risk management systems of each
SBU/business

Department and relevant SBUs and group companies, we are now considering andReassessment of Human Rights Risks

implementing concrete measures to prevent or mitigate the identified human rights

・ Reassessment in light of the effect of human rights risk
prevention and mitigation measures taken

risks.

Labor conditions

Follow-Up and Monitoring
・Assessment of initiatives concerning human rights

We will identify and assess human rights risks in other business units as well, andimplement measures to prevent or mitigate those human rights risks in each SBU.

Information Disclosure

Through ongoing monitoring of each, we will also implement the plan-do-check-act

・Periodic disclosure of initiatives concerning human rights
and their effects(PDCA) cycle to identify new initiatives.
Please see here more details on our human rights due diligence.

© 2023 Sumitomo Corporation* Also promote human rights due diligence in SBUs/businesses other than those identified inhuman rights due diligence by department.
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Human Rights▌ Human Rights Due Diligence
In FY2022, we identified and assessed actual and potential human rights risks in all SBUs of the Infrastructure Business Unit and Mineral Resources, Energy, Chemical & Electronics Business Unit,and confirmed the status of concrete initiatives, such as supplier surveys and improvement activities, for human rights risks of concern associated with the character of the business (product orregion, etc.). As for some of the human rights risks identified through discussions, we will consider and implement further strengthening measures. In addition to the promoting of the understanding
and entrenchment of the company’s responsibility to respect human rights to officers and employees of the Sumitomo Corporation Group, through this process, we are driving concrete initiatives forhuman rights education based on the United Nations Guiding Principles on Business and Human Rights. In FY2022, we conducted a training program for all officers and employees of Sumitomo
Corporation and achieved our medium-term goal of 100% participation rate.

Eight Salient Human Rights Issues
in the Group’s business

Completed in FY2022〈Infrastructure Business Unit 〉
Main human rights
issuesOccupational
health and safety

Identified actual and potential risksInfrastructure Business Unit has many projects that have sites such as
safety must be taken into consideration.

Freedom of associationand the right tocollective bargaining

Forced laborand child labor

Occupational
health and safety

Health and safetyof local residents

Land rights

Discriminationand harassment

Personal information
Privacy

Assessment and countermeasures

construction sites, where workers' working conditions and health andLabor conditions,

Labor conditions

Confirmed that all businesses are highly aware of the importance ofoccupational health and safety management, including employee training.

that there is a system in place to check whether working conditions areappropriate through dialogue with workers, etc., and to take action as necessary,and that no serious problems are currently occurring.

Health and safetyof local residents

In infrastructure business that procure and use natural resources, it is

For the upstream supply chain of natural resources used, the process ofnecessary to give due consideration to respecting the human rights ofconfirming social and environmental risks has been strengthened, taking into

local residents upstream in the supply chain.

consideration the impact on local residents.

Land rights,
Health and safetyof local residents

For infrastructure businesses that involve land development,

Confirmed that dialogue with local residents is carefully conducted in all of theconstruction work, and infrastructure facility operation in each country

projects, including the holding of preliminary explanatory meetings about theregion, it is important to have a system that leads to prompt and carefulprojects and daily communication at the local offices.

Land rights,

engagement with local residents and workers involved and appropriate

Labor conditions,actions..

© 2023 Sumitomo Corporation



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Eight Salient Human Rights Issues
in the Group’s business▌ Human Rights Due Diligence
Completed in FY2022〈Mineral Resources, Energy, Chemical & Electronics Business Unit〉
Main human rights
issuesLabor conditions,

Identified actual and potential risks

In the mining and manufacturing businesses, there is a high risk of issues withFreedom of associationand the right tocollective bargaining

Forced laborand child labor

Occupational
health and safety

Health and safetyof local residents

Land rights

Discriminationand harassment

Personal information
Privacy

Assessment and countermeasures

working conditions and occupational health and safety for workers

Occupational
health and safety

Labor conditions

Confirm that there is a safety management promotion system (occupational accident risk
reduction process, occupational accident rate targets and measures to achieve them) at
the group companies, and that there are no problems with the PDCA process, including
prevention of recurrence of accidents when they occur. We also confirmed that there are
no problems with working conditions.

Forced labor and child



labor

Labor conditions,

In the manufacturing and trading businesses, there are concerns about the risk ofConfirm traceability of procured items with suppliers, and inform them of the Group's

human rights abuses, including working conditions and forced labor, at the top of"CSR Action Guidelines for Supply Chains" and "Human Rights Policy," and consider

the supply chain

further reducing the risk of human rights violations in the supply chain.

In the mining business, employee compensation (for finding new jobs, etc.) and

For mining operations that have already submitted closure plans to the government, we

Health and safety

impacts on local communities and neighboring environments must be kept in mind

confirmed that the mine closure plan has been in dialogue with the community for manyof local residents

when closing mines. These considerations must also be incorporated into mineyears during the process of establishing the closure plan, and that the plan alsoLand rights,

closure plans.

describes rehabilitation activities to stabilize the mining area after the closure of the mine.

Labor conditionsIn the mining and manufacturing businesses, it is preferable to developmechanisms for obtaining employee feedback (speak-up system, suggestion box,

SC Global Speak-Up is available at our group companies. Some group companies are
considering the establishment of a Speak-Up system or a reference box, if necessary.

etc.)
All



In the mining business and other businesses, Sumitomo Corporation is a minor

In some businesses, discussions were held with the majority investor to ensure thatinvestor in many of their businesses. It is important to have a system for rapid

information was shared with us by the majority investor at board meetings and in reports

sharing of information, including actual human rights abuses and the status ofafter the incident occurred.

measures, from major investors to Sumitomo Corporation.

© 2023 Sumitomo Corporation

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Human Rights▌ Human Rights Due Diligence
Eight Salient Human Rights Issues
in the Group’s business

Completed in FY2021〈Media & Digital Business Unit〉

Main human rights issues
Labor conditions,

Identified actual and potential risksDiscriminatory statements and expressions may be included in the video









(AI and data）© 2023 Sumitomo Corporation



Health and safetyof local residents

Land rights

Discriminationand harassment

Personal information
Privacy

To establish human rights policies and procurement policies and publicize to suppliers.

To consider risk prevention and mitigation measures, such as warning related staffs andConfirmed that each business has been aware of the risks and has been working
thoroughly to ensure legal compliance.

infringement of the right to know and freedom of expression by shuttingof expression
New human rights issues

The overseas telecommunications business is subject to the risk of

Occupational
health and safety

introducing education programs for them.

marketing business..

Privacy
The right to know and freedom

Personal information leaks and privacy violations especially in digital

Forced laborand child labor

To understand actual human right situation of supply chain.

distribution, entertainment content and advertisements.

Personal information

Freedom of associationand the right tocollective bargaining

Assessment and countermeasuresand subcontractors.

Forced labor and child labor
Discrimination and harassment

Concern about human rights issues in supply chain: indirect suppliers

Labor conditions

To continue initiatives to contribute to respect for human rights in the Myanmar
telecommunications business based on human rights assessments.

down or interception of communications.


Discrimination or privacy violations may occur through the use of data or

To conduct survey and case studies on the trends of legal and governance.

algorithms.

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Completed in FY2021〈Living Related & Real Estate Business Unit〉
Main human rights
issuesFreedom of
associationand the right tocollective bargaining

Principles andPolicies

IBC
Stakeholder
Capitalism
Metrics

Eight Salient Human Rights Issues
in the Group’s business▌ Human Rights Due Diligence

Labor conditions(wages and working
hours),
Occupational
health and safety

Commitment
to External
Initiatives

Labor conditions

Freedom of associationand the right tocollective bargaining

Forced laborand child labor

Occupational
health and safety

Health and safetyof local residents

Land rights

Discriminationand harassment

Personal information
Privacy

Identified actual and potential risks

In the real estate related business, attention must be paid to labor conditions andAssessment and countermeasures


Room to further consider broad communication of human rights and procurement policies

occupational health and safety of not only to parties contracting directly with ourwhen in discussions or contracting with construction contractors and other subcontracting

company but also of parties related to the supply chain, including construction

business partners.

contractors and property-owning management contractors.


It is important to establish mechanisms for obtaining feedback from workers,Confirm that initiatives are being implemented to develop human rights due diligence

including employees on agricultural land, in respect to the freedom of association

processes, including interviews with employees, and to establish and publicize contact

and right to collective bargaining.

points for listening to the opinions of workers and other stakeholders.

Forced labor and childSome domestic businesses are employing foreign technical trainees.

labor



The food distribution business must be on the lookout for forced labor and childthe foreign technical trainees and to preventing adverse impacts on the workers in terms

labor upstream (agricultural land) in the supply chain.

of labor conditions and occupational health and safety. Going forward, continue efforts toConfirm that consideration is being given to understanding the employment situation ofmaintain and improve the working environment through regular discussions with theinterns themselves.


Confirm that initiatives are being implemented to investigate and improve the situation
after risks are materialized, and to identify and investigate supply chains with a highpotential risk.

Land rights,

Health and safety

In the real estate related business, preparations must be made for situations that
impact land rights and the day-to-day lives of local residents.

Confirm legal compliance and briefings/discussions with local governments andcommunities.

of local residents<Preventing and Mitigating of Materialization of Human Rights Risks with Follow-up and Monitoring>
Timelines and ways of responding to human rights risks vary according to a number of factors, including the severity of the risks and their level of involvement with each business. For this reason,each SBU and each group company should be responsible for their responses to the related human rights risks. For risks identified and assessed through our human rights due diligence, each SBU
and each group company prioritizes the risks based on their severity of the impact, incorporates them into concrete action plans, and implements the plan-do-check-act (PDCA) cycle. Monitoring of
the progress of such actions is then integrated into the following-up concrete initiatives aiming to achieve the long-term and medium-term goals to address key social issues of the Sumitomo
Corporation Group and continually checked. In addition, the Corporate Sustainability Department supports each SBU and business’s action, as necessary.
© 2023 Sumitomo Corporation

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Human Rights
Activities〈Discrimination and harassment〉• See p.102 for information on harassment training.
• See p.139 for information on the Speak-Up System.
〈Personal information and privacy〉• See p.143 for information on Information Security Policy and internal education.

Regarding a grievance mechanism,

Fyffeshas

already implemented

a global,

independent grievance mechanism, available in the language of our employees via
telephone or online since April 2019. In accordance with the mitigation plan, it wasagreed to run a broader campaign internally to make sure that all employees were aware║ Activity Description
Human Rights Initiatives at Fyffesof the hotline. Fyffes does not tolerate any forced labor nor migrant human rights
violations and continues to conduct and participate in internal and third-party ethical andsocial audits, including Sedex Members Ethical Trade Audit (SMETA) audits throughout

Fyffes plc, one of our group companies and, one of the world’s leading companies in thea large proportion of its supply chain, such as Fyffes owned farms, various grower

production and wholesaling of fresh produce, is the only company in its sector to havepartners and ripening facilities. In the UK, Fyffes Group Ltd has regular audits on its

completed three years of human rights due diligence, starting in 2019. The most recent

labor providers and investigates any signs of forced labor, e.g. retention of passports etc.

Human Rights Impact Assessment (HRIA) was finalized in 2023 and conducted

Fyffes has formed a Human Rights Core Team and they are responsible forindependently by the expert organization BSR. The HRIA updated previous findings,

implementing mitigation measures to address the salient human rights risks. Fyffes has

strengthen understanding of its human rights' salient issues across key value chains andcommitted to conducting a human rights impact assessment annually with angeographies and assess and strengthen current level of management. In addition, theindependent consultant every third year. In August 2023, Fyffes published its second

Assessment assessed human rights impact and opportunity specific to its operations in

Human Rights Report, way ahead of its competitors and the vast majority of its

three countries. As such, site-visits were conducted Colombia and Honduras, and acustomers.

remote, desk-based assessment in Guatemala, to better understand risk profiles andIn 2021, Fyffes published its first Sustainability Report. The report shared its 13

identify opportunities for mitigation and remediation of identified impacts.

ambitious sustainability targets under the four focus areas "Stewardship for the Planet,"

In addition to HRIAs, Fyffes has conducted Community Needs Assessment (CNA) in fivecountries’ local communities surrounding our operations, acknowledging their concerns
and interests while managing or mitigating the potential or actual risks that our operations
may have on them. Over 2,200 people were interviewed anonymously as part of the
CNAs.

"Enriching People’s Lives," "Healthy Food for Healthy Lives," and "Fyffes Principles of
Responsible Business Conduct.“ Fyffes sustainability targets are aligned to nine
United Nations Sustainable Development Goals and include six targets relating tohuman rights, including a commitment to train 100% of its employees, contractors andsupply chain workers on human rights. Fyffes second Sustainability Report is publishedin September 2023.

Sustainability Report© 2023 Sumitomo Corporation

Human rights Report

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Human Rights
Activities║ Activity Description║ Activity Description

Supplier Management in the Foods Business

Black Economic Empowerment Act in South Africa

We also urge suppliers and other trading partners as well as business partners to take action inorder to promote respect for human rights throughout entire value chains related to Sumitomo
Corporation Group businesses. As a specialized food and food products trading company that is
involved in all processes from product development to selection of production areas in regions
around the world, procurement of ingredients, production and processing management, logistics,
and domestic distribution, SC Foods Co., Ltd. conducts supply chain management so that it can
provide safe, reassuring, and high-quality products that take into consideration sustainability
including respect for human rights. When selecting new suppliers, SC Foods Co., Ltd. conducts
data surveys, and when determined to be necessary, also performs on-site visits. With regard to
existing suppliers, more detailed questionnaire surveys are conducted of suppliers of products suchas coffee, sugar, and sesame seed from certain countries with high human rights risks to confirm
that there are no issues. To strengthen these management cycles even further, SC Foods
introduced a system of implementing on-site inspections once every five years, even with respect toexisting suppliers in 2019. During the COVID-19 pandemic, it has been difficult to conduct on-site
inspections, so SC Foods have initiated investigate alternate methods such as remote inspections.
See p.95 for information on acquisition of certification.

Due to the history of apartheid in South Africa, there are policies that aim to reduce inequality inrights and opportunities for black people to participate in economic activities and to improve theirsocial status. It is required to include at least a certain number of black companies in a businessproject and to give back part of the profits to the community.
To comply with such policies, Dorper Wind Farm company, in which we invest, offers cooperation in
improving the living environment of local residents and creating new jobs. Specific efforts include
donation of equipment and refurbishment of buildings at kindergartens, schools and hospitals
located close to the power plant, and support to restaurants operated by black women. Throughthese activities, we appoint local companies where possible. A portion of the shares of Dorper Wind
Farm company are owned by local sponsors run by local residents and dividends distributed tosuch sponsors are used for various projects that meet the needs of local residents.

Human Rights Audit Implemented at Thailand Chicken Processing Plants
In March 2019, with the appointment of external experts, Sumitomo Corporation implemented ahuman rights audit at three chicken processing plants operated by Thai business partners. Cases
have come to light in Thailand of infringement of the human rights of foreign workers in laborintensive industries such as poultry rearing, seafood processing, and garment manufacture. We
make periodic visits to the processing plants of its business partners to check that regulations onhuman rights and other areas are stringently observed. This audit was carried out with particularfocus on the work environment of foreign employees.
The audit team visited the plant and the employees’ dormitory to check for forced overtime working,confiscation of identification documents, and labor health and safety issues, which are cited ascommon human rights risks in the poultry industry. In addition, employees of non-Thai nationality
from Cambodia, Myanmar, and other countries were randomly selected for interview. The audit
found no human rights issues relating to foreign workers at any of the three locations and theprocessing plants demonstrated proactive communication with us and a strong commitment tofurther improvement of operations.
To fulfill its social responsibility in the supply chain, Sumitomo Corporation Group will continue toaddress human rights issues in its relationships with important suppliers and to carry out audits,taking account of local conditions and industry practices in those countries and regions withconcerns over human rights risk.
© 2023 Sumitomo Corporation

Dialogue with Local Residents in Mining Projects
In promoting resource development projects, understanding of local areas is essential. In thedevelopment project of the Ambatovy nickel mine in Madagascar, we have taken the initiative inhaving dialogues with the government and local residents, in cooperation with the diplomatic corps
and lending banks group since the start of the development. We use these dialogues to share ourbelief that “this project is extremely important to the future of Madagascarˮ and deepen the mutual
understanding of the significance of the project. In the Ambatovy project, we also promote theemployment of people in Madagascar and improve their skills. In FY2022, about 90% of all workers
are Madagascar people, and we are systematically working on technology transfer and humanresource development for them. We have a complaint system to receive any kind of complaints,
including human rights violations, in cooperation with local communities, in order to prevent
accidents associated with the project and address them
if they occur. Employees and external stakeholders are
eligible to access this system. Project staff
appropriately respond to complaints while protecting
personal information. Since 2016, the Ambatovy project
has joined the Voluntary Principles on Security and
Human Rights (VPSHR) program in partnership with
NGOs, the Madagascar government and othercountries' embassies.

An elementary school built within the project site

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Activities
活動▌ Respect for the Rights of Children▌ Concept Concerning the Use of Security Companies

As the world population is mostly made up of children and younger generations, theIn the operation of its business in countries around the globe, the Sumitomo Corporation

Sumitomo Corporation Group is aware that its corporate activities have an impact on the livesof children both directly and indirectly. For companies, children are family members of
employees, as well as important stakeholders who will play future roles in the sustainable
development of society. Based on this recognition, we signed the United Nations Global
Compact in its support of the Ten Principles, and respect Children’s Rights and Business
Principles. We are committed to preventing the violation of children’s rights through ourbusiness and social contribution activities.

Group uses security companies to protect the safety and security of its employees. Whennecessary, we may use armed security personnel, recognizing the human rights risks involved
and complying with laws and regulations of the countries in which we operate. We selectsecurity companies in accordance with the Voluntary Principles on Security and Human
Rights and the Basic Principles on the Use of Force and Firearms by Law Enforcement
Officials.
For more information on social and environmental risk management, see p.141, 142.
We have put in place a companywide framework to apply when starting new businesses,
including review and periodic monitoring, in order to appropriately manage the social andenvironmental impacts including human rights.

▌ Respect for the Rights of Indigenous Peoples
As part of its commitment to respect human rights, the Sumitomo Corporation Group respects
global standards pertaining to the rights of indigenous peoples, including the United Nations
Declaration on the Rights of Indigenous Peoples, and the principle of “free, prior and informed
consent (FPIC).” In business operations in areas where indigenous peoples reside, we
recognize their unique culture and history and comply with applicable laws and regulations ofeach country or region.

© 2023 Sumitomo Corporation▌ Sumitomo Corporation Group Statement for
UK Modern Slavery Act 2015
We set out the steps Sumitomo Corporation Group has taken to help ensure that modern
slavery and human trafficking are not taking place in SC Group's business or supply chains.
The statement is approved by the board of directors of Sumitomo Corporation as the parent
company of Sumitomo Corporation Group.
Statement for UK Modern Slavery Act 2015

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Activities
活動▌ Training Seminars on Human Rights
Sumitomo Corporation Group’s business activities cover a wide range of countries, regions and industrial fields. As per our Human Rights Policy, we consider that we have a
responsibility to work with suppliers and business partners, instead of acting alone, to ensure respect for human rights throughout the entire supply chain. Since FY2014, we haveconducted some activities such as seminars with external experts and e-learning program for officers and employees of the Group regarding the necessity of taking actions
throughout the supply chain for respect of human rights and human rights issues that are necessary to be paid special attention through business activities. The seminars cover awide range of topics, including the relationship between business and human rights, actual cases that the reputation of the company was harmed due to their inappropriate response
to human rights issues and the way of identification and assess the influence of human rights. Comments from seminar participants include “Since the Group is engaged in diverse
business activities all around the world, we should continue awareness-raising activities so that as many employees as possible can better understand relevant issues”. With thegreat responsibility and role of companies in respecting human rights, and the importance of every employees involved in business activities understanding of and having an attitude
to respect for human rights, we work hard to spread and instill respect for human rights through training and other programs.

Consultation Desks for external stakeholders
As a part of our grievance mechanism*, in addition to whistleblowing system, we accept opinions and grievances from external stakeholders, including the general public andcustomers, through the following system available on our corporate website.
We work with external experts, depending on the situation, to ensure that issues are corrected, improved, and prevented from recurrence. Also, the content of inquiries is reported
to the management, including CSO, and the Corporate Sustainability Committee.
* A process that employees, local residents or other stakeholders can use to lodge complaints regarding human rights violations and other issues related to enterprise’s businessactivities including its supply chain, for resolving such issues© 2023 Sumitomo Corporation

Sustainability Contact Form | Sumitomo Corporation

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Policy and Concept
活動
The Sumitomo Corporation Group is engaged in globally-oriented business in a wide range of fields. It is our responsibility to appropriately manage impacts caused by ourbusiness activities, including extensive supply chains, on society and environment. 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. 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
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 toachieve 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 tokindly 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 formsof 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.
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Supply Chain
Activities▌ Policy and Concept on sustainable procurement of palm oil▌ Supply Chain Management

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 andenvironmental risks especially in the upstream supply chain, as its raw material, oilpalm, may be linked to the deforestation of valuable forests, damage to biodiversity
and impact on a local community due to plantation development, and forced andchild labor in some production process.

In monitoring social and environmental risks in each business, we confirm

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.

the supply chain based on the Sumitomo Corporation Group CSR Action
Guidelines for Supply Chains, individual procurement policies, and laws
and regulations.

▌ Conflict Minerals Policy
The Dodd-Frank Act, which was enacted in July 2010, requires US-listedcompanies to trace the country of origin of minerals used in their products within
their supply chains to determine whether or not "conflict minerals“* produced in andaround the Democratic Republic of the Congo are included. The results must bereported annually to the U.S. Securities and Exchange Commission (SEC) anddisclosed 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

* Roundtable on Sustainable Palm Oil© 2023 Sumitomo Corporation

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Activities║ Activity Description
Initiatives Taken in the Real Estate Business
Sumisho Realty Management Co., Ltd., a real estate asset management business of theSumitomo Corporate Group, has identified seven material issues and is implementing
initiatives to adapt to changing global trends, meet the expectations of stakeholders, andcontribute 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 thisreason, it defines and implements basic policies toward ESG.

Sumisho Realty Management’s ESG Policy

Seven Material Issues & Initiatives
Material Issues•

Climate change mitigation•

Portfolio greening•

Human resource development

E

S

•

Diversity, Equity & Inclusion•

Tenant satisfaction improvement& contribution to local
communities•

Engagement with investors andtrustworthy governanceG•

Thorough compliance & risk
management© 2023 Sumitomo Corporation

Initiatives•

Consideration for reduction of energy consumption, CO2
emissions, etc.

•

Promote acquisition of green building certifications such as
GRESB, CASBEE, DBJ Green Building Certification, BELS,
etc.

•
•
•

Provide ample training programs
Support acquiring professional accreditations
Develop real estate professionals with an emphasis on
teamwork•

Create a working environment in which diverse humanresources can flourish over the medium to long term
Respect human rights
Provide ongoing employment support to achieve work-lifebalance

•
•

•
•
•
•
•
•
•

Provide/operate facilities with high tenant satisfaction
Consideration for environment/society by collaborating withtenants, PMs, BMs, etc.
Contribute to and consider local community
Disclose information to investors and promote constructive
dialogue
Develop a governance structure trusted by investors
Monitor and respond to risks
Appropriately operate an internal control system forcompliance with laws and regulations

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Supply Chain
Certification║ Activity
ActivityDescription
Description║ Activity Description
EcoVadis Certification for the Mineral Resources, Energy, Chemical &Electronics BusinessMeasures Taken through Sustainable Supply Chain Certification

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.

RSPO: Roundtable on Sustainable Palm Oil
We became an ordinary member of the RSPO in 2019. Further, ourconsolidated subsidiaries SC Foods Co., Ltd. And Summit Oil Mill Co.,
Ltd. obtained RSPO supply chain certification in 2021.

2-1036-19-100-00

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 ourgroup-companies.

Platinum Medal: Summit Cosmetics Europe
Gold Medal:
Cosmotec International Especialidades Cosmeticas Ltda,
Presperse Corporation
Silver Medal:
SUMITOMO DEUTSCHLAND GMBH
Bronze Medal : Summit Pharmaceuticals International, Summit Pharmaceuticals
Europe, Summit Cosmetics Corporation*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

PEFC™：Program for the Endorsement of Forest Certification Schemes
We obtain PEFC™ CoC certification, an international forest management.

║ Activity Description

SBP: Sustainable Biomass Program

Measures Taken in the Chemical and Electronics Industries

In September 2019, we became the first Japanese company

Sumitomo Shoji Chemicals Co., Ltd. is mainly engaged in trading business of chemical andto obtain SBP certification for CoC (Chain-of-Custody) andCollection and Communication of data. SBP is a certification
system providing assurance that woody biomass used inenergy production is sourced from legal and sustainablesources.
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.

electronic products, which are involved in various industries and have a multitude ofapplications. 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 beenreported. Sumitomo Shoji Chemicals is a member of Sedex, a nonprofit membershipproviding 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

ASI：Aluminium Stewardship Initiative
We are a member of the Aluminium Stewardship Initiative (ASI), the global aluminium

Sedex. Sumitomo Shoji Chemicals agrees on the Green Partner Environmental Quality

industry organization. As an active participant in trading aluminium materials and products

protection. It also requires its suppliers of raw materials to agree on a green procurement

globally, we support ASI activities and standards across the global aluminium value chain.

Approval Program of its clients, whose objectives include the promotion of environmental
program and other relevant programs and to comply with environment-related laws andregulations, and follows their implementation.

© 2023 Sumitomo Corporation

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Certification║ Activity Description║ Activity Description

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. Feilerpurchases 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).
*1 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.

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*2 and ASC*3 certification forsome of its marine products for the purpose of sustainable procurement and environmental
and social considerations.

║ Activity Description║ Activity Description

SC Foods Initiatives: Supporting Female Farmers by Dealing in Certified Coffee
SC Foods Co., Ltd., a member of the Sumitomo Corporation Group, deals in coffee certified
by Con Manos De Mujer (CMM: English name:：WOMAN'S HAND). In 2010, Mayacert S.A.
and Asobagri Cooperative jointly established the CMM certification system with the goal of
bettering the social standing of women and improving their economic environment. The
premium attached to the price of CMM certified coffee
is transformed into scholarships, medical assistance,
etc. given to female farmers who are members of thecooperative, supporting their active efforts to achieveself-actualization.

Expression of Support for UN Food Systems Summit*2 MSC: A certification system for sustainable fisheries to protect the world's marine
resources, administered by the Marine Stewardship Council.
*3 ASC: An international certification program for environmentally and socially responsible
aquaculture products, administered by the Aquaculture Stewardship Council.

Sumitomo Corporation expressed its support for the United Nations Food Systems
Summit (FSS), declaring that it will contribute to global sustainable food systems througha range of food and agricultural businesses conducted by the Sumitomo Corporation
Group. The FSS, held in September 2021 in New York, was the first international forum
having discussions on the sustainability of food systems as a global common agenda andsetting a vision for the future. The summit was being held based on the belief of UN
Secretary-General Antonio Guterres that transformation to sustainable food systems
would be crucial for delivering the Sustainable Development Goals (SDGs).
Our commitment© 2023 Sumitomo Corporation

Ministry of Agriculture, Forestry and Fisheries
FSS related websites (Japanese language only)

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HR Management: Overview of the HR Management Cycle
Policy and Concept▌ HR Initiatives Centered around the Global HR Management Policy
The Group defines its ideal employee (individual) and company (organization) within the
Global HR Management Policy, and aims for “Enriching lives and the world” by building
relationships in which individuals and the organization grow together. Based on
Sumitomo’s Business Philosophy underlying the Group’s human resources, we areworking to upgrade the HR management cycle. Specifically, we are creating a work
environment and workplace culture that serves as the foundation for each and every
employee to demonstrate their abilities and potential, and implementing various measuresand systems from the perspectives of recruitment, development, right talent to the rightassignments, performance management, and fair treatment. At the same time, following
the concepts of expanding the pool of Top-Tier Professionals, implementing thorough“Pay for Job, Pay for Performance,” promotion of diversity, equity and inclusion, andenhancing people management skills, we provide a place where each and every
employee can realize autonomous growth and self-realization and encourage them to takeon new challenges for value creation. Through this cycle, we are maximizing theperformance of the organization and our diverse workforce, thereby realizing our visionand creating new value for the Group. Furthermore, important HR management policies,
strategies, and measures are discussed at meetings of the Management Council and the
HR Management System Committee, an advisory body to the Management Council. The
Board of Directors makes decisions, supervises, and monitors these policies accordingly.

© 2023 Sumitomo Corporation

Global HR Management Policy

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HR Management: Global HR Management
Policy and Concept▌ Global HR Management Policy
Sumitomo Corporation established the Sumitomo Corporation Group’s Global HR

To survive these revolutionary times, it is essential to effectively use a mixture of diverse

Management Policy in September 2020. This policy sets forth the vision and concept of HR

wisdom from diverse individuals to improve our competitiveness, in other words, we need to

management on a global basis for the creation of new value. It is used as the foundation for

combine our forces to further accelerate our growth strategies with a focus on the diversity ofeach HR initiative.

our global talent, especially on the individual’s strengths.
In addition to reviewing systems and mechanisms that impede the inclusion of attributes suchas nationality, gender, age, sexual orientation, and gender identity (elimination of physical▌ What we aim for
Based on this policy, we seek to increase talent throughout the Group who can create newvalue on a global scale, sharing the Group’s vision and mission, and maintaining highbarriers), we will also promote a culture and awareness that leverages diversity at a deeper
level, including different opinions, ideas and perspectives, values, abilities, skills, andexperiences.
The elimination of all barriers, including psychological barriers and unconscious biases, requires

aspirations and a continuous intrinsic motivation with Enterprising Spirit. We also aim toan understanding of the barriers each employee faces and concrete actions to remove them. To

build a “Great Place to Work” on a global scale, where individuals continuously andencourage this behavioral shift, we have explicitly added the concept of "Equity" to our Global

passionately create new value. We aim to be an organization recognized for nurturing talent

HR Management Policy in 2022, and have listed it as Diversity, Equity & Inclusion.

that continuously take on new challenges throughout the world.

In promoting the growth strategy of the Group, it isnecessary to promote the right talent to the right▌ Promotion of Diversity, Equity & Inclusion(DE&I)

assignments on a global basis, to strategicallyappoint and develop talent, develop organization,

The Sumitomo Corporation Group recognizes Diversity, Equity & Inclusion as "the core enabler

and nurture a culture and awareness within thefor value creation, innovation and competitiveness" in its Global HR Management Policy.

Group to support these points. Under the vision set

The business environment surrounding the Group has been rapidly changing and the regions

forth in the Global HR Management Policy, we will

and business fields where we operate, as well as business models have also been rapidly

collaborate with overseas organizations to pursue

diversified. For us to address such changes and continue to develop in a sustainable way, it is

DE&I in the Group on a global consolidated basis.

essential to make DE&I one of the core aspects of our management strategy.

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HR Management: Recruiting
Policy and Concept▌ Basic Policy on Recruiting■ Internships for University and Graduate Students

As a company that engages in global business, Sumitomo Corporation Group requires human resources

We offer internships to university and graduate students every year to have them experience the business of

who are attuned to our businesses and principles, have high aspirations and a continuous intrinsic

an integrated trading company and to provide an opportunity to support the development of their career

motivation with Enterprising Spirit, and a willingness to create new value on a global scale. Our basic policy

views. In FY2022, we conducted two internship programs. The first program was a business experienceis to conduct fair and equitable recruitment that respects fundamental human rights without discrimination,

program on a renewable energy project. The second program, a business creating program on an

and hires employees based on the professionalism, abilities, experience, potential, and aspirations ofagricultural business, allowed participants to experience the process of creating a new business with design

applicants regardless of nationality, gender, age and other attributes. In addition to hiring new graduates,

thinking skills. Participants can experience the process of bringing a business into reality, and through thiswe actively recruit mid-career human resources talent hires and flexibly recruit other talented individuals

process also develop their career views as well as deepen an understanding of the process of new value

throughout the year in line alignment with our management and business strategies.

creation.

Activities〈Number of Past Participants〉
FY2020: 164 / FY2021: 148 / FY2022: 230▌ Basic Measures Relating to Recruiting: Internships
We hold various seminars relating to recruitment and create numerous opportunities to support the careerdevelopment of post and undergraduate students.

■ Next Leaders' CampWe are holding Next Leaders’ Camp as a program that supports development of the career views ofstudents. With the aim of offering true career education that goes beyond just recruitment activities, theprogram helps to resolve the questions and concerns that students may have when considering theircareers. The Next Leaders’ Camp includes a “Global Program” and a “Sustainability Program”. The“Sustainability Program”, for example, offers lectures on the social context of demands for sustainability
and actual business analysis using case studies from our company. Its aim is to deepen the participant’s
understanding of the role of Sumitomo Corporation Group and the values that we should demonstrate. One
participating student commented, “I was able to notice important values when thinking about my own▌ Recruitment of Mid-career Human Resources
The business environment surrounding us is changing rapidly. In order to survive the competition in this ageof tremendous changes, we need to take on the challenge of doing business in new fields while expanding
and advancing our existing businesses. To respond to these business needs, in line with our businessstrategy, we recruit mid-career professionals with diverse expertise and knowledge. Our mid-career hires
have a wide range of backgrounds and include lawyers, public accountants, and those with otherqualifications, as well as people with experience in the manufacturing, finance, media, IT, and otherindustries. These professionals from various fields are making use of their respective expertise for the benefitof our company.
Sumitomo Corporation recruits mid-career workers not only for their expertise and knowledge. We expect
these employees who have diverse backgrounds, to revitalize the company and organizations with their waysof thinking, work methods, out-of-the-box ideas, values, and help us enhance our competitive strength.

career”.

Sumitomo Corporation will continue to promote mid-career recruitment along with the employment of new〈Number of Past Participants〉

graduates for the retention of a diverse workforce.

FY2020: 1,322 / FY2021: 2,548 / FY2022: 271▌ Utilizing the Alumni Network*Conducted online in FY2020 and FY2021, in-person in FY2022

The SC Alumni Network was established in FY2019 to provide opportunities for alumni now working in othercompanies to interact with current officers and employees of Sumitomo Corporation. The purpose of the
network is to foster an open corporate culture while creating new business opportunities by merging various
knowledge and personal networks inside and outside the company. Alumni are expected to play a supporting© 2023 Sumitomo Corporationrole in securing talent while working to create a more interconnected network.

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HR Management: Development
Policy and Concept

Activities▌ Basic Concept of Talent Development▌ An Introduction to our Talent Development Programs

For the Sumitomo Corporation Group our talent are the most important management capital.

As Sumisho Business College (SBC), we organize 300 courses of OFF-JT training a year and

The Global HR Management Policy established in 2020 describes the “ideal individual” as “athat offers individuals various types of programs to acquire the knowledge and skills needed toperson who is creating new value on a global scale, sharing SC Group’s vision and mission,be active in each field. In addition, we believe talent development based on individual careerand maintaining high aspirations and a continuous intrinsic motivation with Enterprising Spirit”.

perspectives, experiences, aptitudes is important, and therefore, we focus on career

The most important thing when bringing this into reality is for each individual to enhance theirdevelopment training to ensure that as many people as possible can work with high motivation

abilities, or expertise which are valued globally. A combination of on-the-job and off-the-job

and comprehensively demonstrate their professionalism. Moreover, there are training programs

training is essential for developing a group of such top-tier professionals.
By “generalizing and conceptualizing” experiences through “introspection and reflection” onwork successes and failures and by acquiring skills and knowledge necessary for pursuing work,
our talent become capable to engage in more advanced assignments.

which enhance people management skills and promote DE&I so that supervisors can address
and motivate team members and lead diverse human resources to link organizational growth
as well as individual growth. We also offer long-term programs for selected employees thatallow employees to acquire the knowledge and skills necessary for business management.
Many of those completing the program have been playing a leading role in managing groupcompanies in Japan and abroad. In our efforts to enhance the development of our talent, in
addition to in-house training programs, we make effective use of external high-level training
programs, such as overseas executive programs.

Number of Hours for Ability Development Training
in FY2022（Non-consolidated）© 2023 Sumitomo Corporation

SBC

Business unit
training (Non-SBC)

Total number oftraining participants

22,901
employees

69,545 employees

Total number oftraining hours

80,933 hours

96,378 hours

Number of training hours
per employee

14.7 hours

17.5 hours

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HR Management: Development▌ Talent Development Programs

1. Level-Specific Programs

3. Long-Term Programs for Selected Employees

At the time of promotion, we arrange training programs that offers

Long-term programs for selected employees are intended to foster a management perspective and for participants

understanding to the internal rules and literacy necessary for conducting

to make self-reform as well as to acquire skills for practical leadership, which can be difficult to obtain through short-business. From new employee to senior management, participants in theterm programs. Participants in each program are selected from among those who are demonstrating their abilities attraining will understand what is expected of them and what roles they

the forefront of business and those who are expected to take on leadership roles in the future. These long-termshould fulfill, thereby acquiring tips on how to transform themselves. We

programs contribute to develop and foster Top-tier professionals to be active in various fields.

offer Level-Specific Programs for the entire Sumitomo Corporation
Group. Through the program participation, they build a rich network
within the Sumitomo Corporation Group. In these programs, emphasis isplaced on fostering leadership that can contribute to society throughbusiness, offering participants an opportunity to gain awareness forautonomous personal growth.

2. Selective ProgramsMore than 80 different selective programs are available, covering
comprehensive knowledge and skills, from basic to advanced levels, thatwill be needed to play a leading role as an executive who can contributeto society through business. After completing the “Introductory
Seminars” and the “Basic Seminars” where employees can acquire thebasic skills and general knowledge required to work for an integrated
trading company, employees can choose any of the programs where
they can learn about knowledge and skills required for them to effectively
pursue their work. Regardless of their current department or job,
employees are supported with training so that they can learn, or continuelearning the literacy, specialized knowledge, theories, and frameworks■SEP（Sumitomo Executive Program）
Targeting department and division managers who are expected to fill executive manager roles in the future and are
expected to possess a companywide management perspective, this program provides opportunities to gain an
insight into the big-picture perspective, thinking, and determination that executives should possess throughdialogues with top management and members from different industries, as well as through receiving advice frommanagement and inspiration from outside the company. Approximately 30 employees participate in the program.
and, for a total of about 30 days over a six-month period, they shape their ideas for Sumitomo Corporation's
management strategy
as Program）
well as their action plans as leaders to achieve their desired vision.
■MCP（MIRAICreatorThis program targets employees who are required to experience strategic planning from the perspective of the headof Strategic Business Units (SBU) and general managers as future executive managers. Through a variety of casestudies, participants repeatedly engage in simulated management experiences and learn big-picture thinking,strategic thinking, decision-making skills, and leadership. In addition, through visits to the Besshi Copper Mine andleadership philosophy sessions, participants solidify their own theories and worldviews related to management andorganizational human resources, and cultivate their own management views. Approximately 25 employees
participate in this program, and after attending a total of about 20 lectures over a period of about 10 months, they
will make a presentation on the theme of "what they want to be in 10 years as the head of an SBU/division/mainbusiness company.

required for management.

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HR Management: Development▌ Talent Development Programs
3. Long-Term Programs for Selected Employees

5. In-house Education and Awareness-raising on Respect

4. Overseas and Domestic Programsfor Human Rights■Participation in Domestic and Overseas Executive

As a global business group, the Sumitomo Corporation

As a global organization contributing broadly to society, the Sumitomo

Programs at the Company’s Expense

Group offers many intern programs to develop employees

Corporation Group holds management principles that place prime

Employees who are potential candidates for future

who can work effectively around the world.

importance on integrity and sound management with utmost respect for

executive management positions in their respective

These include a trainee program designed to develop talentorganizations are sent to executive programs at domestic

who can play an active role on the global stage, a language

and overseas business schools at the company’s expense.

training program that develops language and regional

Each year, at least 30 employees are sent to businessspecialists, an overseas study program primarily forschools in Japan, and at least 10 employees are sent toacquisition of an MBA, a venture intern program designed

leading business schools overseas, with the objectives of

to foster individual strengths in domestic startups, and afostering awareness and thinking as a future executive,

global intern program that focuses on business in emerging

acquiring comprehensive management knowledge andcountries.

discrimination, people with disabilities, foreign residents, human rights

executive decision-making capabilities, and growing

Each year, 80 to 100 trainees in these training programs

violations on the Internet and other issues related to human rights

through interactions with other personnel and executives.

are dispatched to different regions of the world, including

every year. We also invite external lecturers to conduct annual humanJapan.

rights training to raise employee awareness of human rights issues.

the individual. Based on this principle, the Group developed the“Human Rights Policy” and the “CSR Action Guidelines for Supply
Chain Management” that take into consideration human rights andother various issues. We will respect human rights to take our social
responsibility and pursue sustainable growth with society.
With the above considered, we have established a committee topromote human rights and Dowa issues, and we have a forum to
discuss internal issues on human rights such as Dowa issues Buraku

We also distributed e-learning content on respecting human rights inbusiness and conducted other internal educational programs for further

The number of trainees dispatched in FY2022

action.

Global internshipIn addition, training seminars on mental health and human resources

Ventureinternshipmanagement have been conducted. In Level-Specific Programs for
managers, programs on harassment prevention have also been addedInternational
students

to maintain a harassment-free work environment and to provide

Language trainees

suggestions on how to address harassment in case it occurs. ThroughOverseas trainees

these efforts, we provide employees with education and raise their(Persons)© 2023 Sumitomo Corporation

awareness to thoroughly prevent human rights violations at work.

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HR Management: Development
Activities▌ Sumitomo Corporation Global HRD Center- A training center to develop global talent and for the use as a strategic
multipurpose facility -║ Activity Description
Job Training Programs at Toyota Iraq
Sumitomo Corporation conducts job training programs through Toyota Iraq, a subsidiary,
to create local opportunities for stable employment and enhance the skills of job seekers.
Prolonged conflict in Iraq has had tremendous impacts on the people, and more than 3
million people have been forced to leave their homes and have become internallydisplaced persons (IDPs).
Over recent years, employment has become a more serious issue for the younger
generation in particular, and creating local skills training and employment opportunities isan urgent matter. Because of such problems, Toyota Iraq has been working with the
UNDP since 2016 to conduct job training programs for such IDPs. Starting in 2020, thecompany has also been working with the International Organization for Migration, an
organization affiliated with the United Nations, to conduct new programs offered topersons other than IDPs as well. To date, 108 persons have completed a total of 9 job
training programs. These graduates have been offered support in finding work at local
companies, and the programs themselves are continuing.
Sumitomo Corporation hopes to achieve sustainable development of local communities
through these programs and will continue to support the creation of job opportunities andskill enhancement in Iraq through these business activities.

The Sumitomo Corporation Global HRD
Center in Ginza, Tokyo serves as a training
center to develop global talent as well as a
strategic multipurpose facility. International
colleagues from different organizations andcountries all over the world meet at thisfacility for intensive discussions on the future
visions and strategies of the Sumitomo
Corporation Group.

Sumitomo Corporation Global HRD Center

Trainees receiving training on vehicle maintenance,
parts warehouse management and customer services© 2023 Sumitomo Corporation

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HR Management：Right Talent to the Right Assignments
Activities▌ Enhancement of Talent Management
Talent development does not happen overnight. There is a need to envision, develop anddeploy human resources required for the growth of each business in the medium to long-term.
In order to assign talent continuously and strategically in line with business strategies on a
global basis, the Sumitomo Corporation Group implements the measures below to help all
talent to play an active role, regardless of whether they belong to Sumitomo Corporation nonconsolidated, overseas offices or group companies.

▌ Advancing Global Measures to Develop Talent
Aiming to recruit and develop talent who can lead global business operations, the Sumitomo
Corporation Group is focusing on promoting and developing locally hired employees in its
overseas offices and Group companies.
As part of these efforts, we conduct training programs for locally hired employees at different
career levels, such as senior executives, managers, and senior staffs. These training programs
establish a shared sense of the Sumitomo Corporation Group's corporate DNA and strengthen

Preparation of Successor
Development Plan

Identification of Key
Positions

Development ofManagerial Talent

the sense of unity among employees as members of the Group by reaffirming participants'
understanding of Sumitomo’s Business Philosophy and the Group's management principles.

▌ Global Talent
Sumitomo Corporation Group promotes placing the right talent to the right assignments on a
global basis, regardless of nationality and affiliation. Based on this policy, locally hired staff andemployees of overseas offices and group companies are transferred beyond the borders ofcountries and companies. We positively appoint local staff to executive positions of overseas
To identify key positions for our groupmanagement which are essential to
execute our group strategy.

Each key position candidate will be selected not
only for the next generation but also its following
generation, and a successor training plan willthen be put in place. Additionally, candidates are
periodically reviewed and replaced.

To enable key position candidates toacquire the necessary experience, skills,
and abilities, we will effectively combine job
rotation, job assignment, and off-the-job
training.

Create a global human resources
database

To visualize our talent pool, we have a database which
includes overseas talent as well.

Introduce the Global Mobility Policy

Common Groupwide Policies on employment conditions
and welfare packages to be applied in the case oftransfer between overseas bases.

Introduce the Global Job Grading

Introduce the Job Grading System, which enables job
size comparisons on a global basis, in each region.

offices to promote our policy of placing the right talent to the right assignments on a global basis.

Executives / upper managements In regional offices: 37© 2023 Sumitomo Corporation

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HR Management：Right talent to the right assignments
Activities▌ Optimal Allocation Under Human Resource System▌ Shift of Talent Under SHIFT 2023

Under our human resource system, to achieve the “Intrinsic motivation/Great Place to Work”

As we re-allocate company-wide managerial resources, in addition to the financial aspects, we

described in the Global HR Management Policy, we conduct talent allocation after thoroughare addressing human resource aspects by undertaking optimal allocation of talent inalignment with the company’s expectations and the individual’s career aspirations. As an

conjunction with the reconstruction of the business portfolio as well as strategic talent allocation

integrated trading company, continuous development of talent who possess a variety of

to businesses covered by the strategic investment fund. For this re-allocation, we are tracking

knowledge and expertise is essential for the sustainable creation of value tailored to the social

the overall and company-wide movement in our talent under SHIFT 2023, while strongly

issues of the times, and we will continue assignment rotations to expand this talent pool. To

promoting the matching of organizational talent needs and individual aptitudes and aspirations,develop Top-Tier Professionals as specified in the policy, more diverse rotations will be required,and expanding in-house recruiting systems to accelerate shift of talent.

and there are cases such as longer term assignments in a particular field to enhance thetalent’s expertise in that field.

（Case）

Results of In-house Recruitment System▌ Succession Planning / Enhancement of Talent Database
To continuously realize strategic allocation of talent as well as the development and appointment ofmanagerial talent across our consolidated global network and according to our business strategies, weundertake succession planning for the next generation, and the generation after that, for key positions(equivalent to HQ general manager and above). To ensure that candidates for key positions are equippedwith the necessary experience, skills, and other requirements, we develop their capabilities accordingly, so（FY）that we can enhance the talent pool both quantitatively and qualitatively. As tools to achieve this, inaddition to adopting a job grading framework which enables to compare job size on a global basis, we arealso working to create an HR database of human resources including talent in overseas offices. In 2019,
we also adopted the Global Mobility Policy as a set of groupwide policies stipulating compensation andbenefit packages for international assignments. This serves as a platform for promoting assignment of
talent across countries and regions.

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HR Management: Performance management / Fair Treatment
Activities▌ Absolute Evaluation / 360-degree Evaluation
As part of our current efforts to reform talent management, we are implementing a range of

Through these evaluation systems and career assessments, we aim to provide support for themeasures that enhance people management skills in dealing with individuals. We havedevelopment of the individual and open diverse paths which closely attuned to each of them.

introduced an “absolute evaluation” system that focuses on the individual. Instead of comparing

In addition, we organically combine talent development measures, such as our in-house

specific actions, progress, and outcomes against those of others, the evaluation is based on the

recruiting system and regular staff rotations, with talent development tools, such as ourdegree of achievements of the individual’s assignments and assignment-related objectives. We

various Off-JT training programs. The aim is to support self-sustaining growth and diverse

have also adopted a “360-degree evaluation” as a mechanism for improving the objectivity andcareer development for each individual so that we can continuously develop Top-Tiervalidity of the “absolute evaluation,” and dealing sincerely with the individual to draw out theirprofessionals.

potential. The 360-degree evaluation is currently applied to managers and above, however, bysoliciting wide-ranging comments from colleagues involved through work, the supervisors can▌ Evaluation based on the Progress of Strategy Execution

make their final evaluation based on those comments. In this way, we aim to achieve a greater

We have introduced evaluations based on the progress of strategy execution as a measure tolevel of information on how others see the individual, which improves the people management
skills of the supervisors and enables them to deal more sincerely with their subordinates, and it
also provides opportunities for the subordinates to gain better insights as well.
In addition, a career assessment interview is held once a year between supervisors andsubordinates to help reflect and align the career views of the subordinates with their supervisor.
In these interviews, we review the individual’s career goals, experience, aptitude, andchallenges from the medium to long-term perspective as we align company expectations forwork and personal development needs with the individual’s own aspirations. This also aims tofacilitate communication and help individuals understand that the interviews offer opportunities
for superiors and subordinates to deal comprehensively with career plans and challenges toovercome. We are expanding our training programs to improve such communication skills tocreate references for effectively communicating with subordinates.

enhance each individual’s commitment in accomplishing each organizational strategy. Under
this system, progress toward achievement of the KAIs and KPIs established at the SBU level isevaluated and reflected in individual bonuses. This leads to the internal sharing of goodpractices toward KAI/KPI execution and the enhancement of the overall PDCA cycle for theaccomplishment of each organizational strategy.

▌ Investment Performance-linked Compensation
We have adopted “a system of compensation linked to investment performance” as part of ourefforts to strictly select investments and strengthen post-investment value-creation. By reflecting
the performance of new investment projects in remuneration, this system seeks to improve theprobability of success of new large-scale investments, and also the sense of ownership of theindividual executing the investment.

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HR Management: Work Environment / Workplace Culture
Activities▌ Inheritance of Sumitomo's Business Philosophy
Sumitomo's Business Philosophy stresses the need for an enterprising spirit to stay a step ahead in dealing with change, while ascribing importance to maintaining integrity and sound management,
avoiding easy gains, and working for the public interest, without being misled by short-term immediate changes. This philosophy has continuously formed the basis of Sumitomo Corporation Group'sbusiness for more than 400 years. With the aim of experiencing and assimilating Sumitomo’s Business Philosophy, which is the basis of the Group’s Management
Principles, we conduct training annually at Besshi Copper Mine in Niihama City, Ehime Prefecture (Trainings in FY2020 and FY2021 were cancelled due to the spreadof COVID-19). The Besshi Copper Mine continued to produce copper for approximately 280 years from its opening in 1691 to its closure in 1973 and supported thefoundation of Sumitomo's business. The visit of this mine is an opportunity to reconfirm the role that the Sumitomo Corporation Group should play in society. Also, allemployees learn the history of Besshi Copper Mine upon joining the company.

▌ Measures to Accelerate DE&I
Sumitomo Corporation sees the active participation of female employees in

For three weeks from March 6 to 26, 2023, we held the company-wide DE&I event,businesses as an important pillar of Diversity, Equity & Inclusion especially inDiversity Weeks 2023 continuing from last year. Diversity Weeks is a set period

Japan, and we have formulated action plans with the aim of advancing this further,during which we focus on the conduction of DE&I programs. The aim is to remind all

and set the following goals to be achieved by 2030.

our officers and employees that DE&I is the source of competitiveness, and help

Diversity①Female Manager ratio: At least 20% or more

Weeks

②Female Department General Manager ratio: At least 10% or more

Promoting
ActiveParticipation of Female
Employees
in Business③Female Director and Audit & Supervisory Board Member ratio: At least 30% or

global collaboration. We will continue holding Diversity Weeks on an annual basis in

more
To

achievethese

goals,

wearereinforcing

talentdevelopment

order to further cultivate DE&I awareness.

andallocation/appointment centered on the new HR system introduced in FY2021 andSumitomo Corporation offers various programs to help its caregiving employees toare working to create an environment where each individual can demonstrate theircontinue work with a sense of security. Through activities such as seminars on basic

full potential, as well as actively appointing experienced personnel to positions suchas executive officer positions, and female and younger employees to executive
management and general managerial positions.
In addition, in order to support our employees to balance life events and career

trigger specific changes in their behavior to further drive DE&I. In FY2022, we alsodelivered messages from General Managers for Overseas Regions as part of ourlong-term care knowledge mandatory for managers and individual consultation

Support for

sessions (once a month) on caregiving, introduction of subsidies for purchase

Balancingof long-term care services and supplies and long-term care diagnostic tools, andWork andcreation of “Handbook for Managing Work-Caregiving Balance,” we are working tointernal policies that go beyond regulatory requirements and have addressed theLong-term

create a work environment where employees who have entered the life stage ofintangible elements such as correcting long working hours, encouraging employees

Caredevelopment, we have reinforced tangible aspects including the establishment of

to take paid leave, and reforming employee awareness with the aim of creating anenvironment that facilitates active participation in the company after childbirth andAction Plan (Japanese only)
childcare.
© 2023 Sumitomo Corporation

caregiving can maximize their performance.
Support for Balancing Work and Long-term Care

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HR Management: Work Environment / Workplace Culture
Activities▌ Measures to Accelerate DE&I
Sumitomo Corporation offers various options that are available employees

As part of its efforts in corporate social responsibility and toward diversity, Sumitomo

regardless of gender with the aim of creating a work environment where
diversified employees who have entered the life stage of child-rearing can exert
their maximum performance. When an employee files a notice of pregnancy or

Support for

Promotion of

In 2014, we established Sumisho Well Support Co., Ltd., a special subsidiarycompany, and we have worked with them since then to employ people withchildbirth for themselves or their spouse, we provide information on the systems

thefor childcare leave and confirm if they want to use those systems through a

Employment

Employees of Sumisho Well Support are engaged in various tasks, such as

and Retention

outsourced general office tasks, scanning documents for digitization, printing andBalancingsurvey. If they want to use the system, we assist them (men and women) withWork andHR's support as needed, etc., through the process of using childcare leave.

Child-rearing

Corporation Group has been promoting the employment of people with disabilities.

・ Support Handbook for Balancing Work and Child-rearingof People with・ Childcare Consulting Services

Disabilities

・ Partnering with Childcare Facilities

disabilities and provide them with opportunities to participate.

binding of business profiles, and business-related data input. They are extremely
important for the business activities of our company. Going forward, Sumitomo
Corporation Group will continue to rely on the uniqueness of each of our employeeswith disabilities to help in our creation of added value.
Promotion of the Employment of People with Disabilities

・ Support for Employees Stationed Overseas with Children
・Roundtable Discussion on Maternity Leave for Male Employees
Supporting employees in balancing work and childcare

The Sumitomo Corporation Group Compliance Policy (established March 2019) andWe are developing working environments where every employee can work with

the Employment Rules codify that no fear or discomfort shall be caused throughintrinsic motivation regardless of their age.

sexualized speech or conduct, harassment, slander or defamation, intimidation,

In both our current HR management system and post-retirement re-employment

violent behavior, or the like on the basis on sexual orientation or gender identity.

system revised in FY2022, we follow the basic concepts of “pay for job, pay for

We aim to create a work environment where each employee provides support for

performance.” We have eliminated the seniority-based promotion and ensured

Abolishmentof a Seniority
Based Talent
Allocationthat we promote the right talent to the right assignments according to thestrengths and expertise of the individual employee.
On the other hand, for senior employees who have a wide range of experienceand extensive knowledge, we have other support measures to help developing astrengths-based career path. This includes encouraging autonomous careerdevelopment and offering opportunities for recurrent training throughout theircareers.
・CLP (Career & Life Planning) Training
・Career Assessment Interviews
・Support to Find a New Job Outside the Company
Support for Senior Employees’ Activities© 2023 Sumitomo Corporation

Raising

LGBTQ+ community with correct understanding, and where LGBTQ+ employee canmaximize their performance. To this end, we conduct various awareness-raising

Awareness ofactivities such as mandatory training for all employees, mandatory training for team

LGBTQ+*

managers, providing information regularly, and distribution of tools to express beinga LGBTQ+ ally. In addition, we are also working to improve our systems andenvironment by establishing LGBTQ+ guidelines, setting up a consultation service,
and establishing rules of employment that certain HR-related systems can beapplied to employees who have a same-sex partner.
* LGBTQ+: L=Lesbian, G=Gay, B= Bisexual, T=Transgender, Q=Questioning,
Queer
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HR Management: Work Environment / Workplace Culture
Policy and Concept▌ Health and Productivity Management
Basic Policy

Safety Measures in Uranium Mining“To achieve prosperity and realize dreams through sound business activities” is one of the

Our Group’s development of uranium mines, production and sales of uranium concentrates*1, and trading

management principles of the Sumitomo Corporation Group.

Based on this principle, ourmission is to ensure the economic and spiritual prosperity of people around the world, including
our employees, shareholders, clients, and local communities, and to fulfill their dreams. We also
believe that in order for every employee to maximize his/her performance, good physical andmental health is essential, without which it is not possible to continuously create new value.

of various kinds of nuclear fuels containing radioactive materials comply with each country's laws andregulations based on the IAEA (International Atomic Energy Agency) standards. With our highest priority
on HSSE (Health, Safety, Security and Environment), we place the utmost importance in ensuring thesafety of onsite employees and local residents. Specific measures taken in production and sales ofuranium concentrates include the measurement of radiation exposure of all those entering and leaving theplant, and the management and monitoring of cumulative radiation doses in employees*2. Furthermore,

Based on this, the Sumitomo Corporation Group formulated the Declaration of Iki-iki Waku-

the uranium concentrates and various kinds of nuclear fuels we deal in are all used for peaceful purposes

waku Health and Productivity Management. The Group implements various efforts based onsuch as power generation. Our relevant activities comply with security trade control-related laws andthis declaration and by taking into account the actual situation of each group company. We will

regulations.

continue to promote health management with a focus on three aspects: “improvement of healthliteracy” to enable employees to continue working in good health, “reassurance in emergencies”
to be well-prepared for unexpected illness, and “global medical support,” which is unique tointegrated trading companies. Also, Medium-Term Management Plan “SHIFT 2023” positions
health management at the core of our human resources strategy.
Declaration of Iki-iki Waku-waku Health and Productivity Management*1 Products manufactured in the said business are natural uranium concentrates, and waste materials
produced in mines and refining plants are limited to a small amount of low-level (naturally occurring)radioactive waste derived from the refining process. Such waste materials are appropriately treated inaccordance with IAEA standards and Kazakhstan’s laws. Furthermore, no high-level radioactive waste or
medium-level radioactive waste has been produced in the business for the two years from FY2021 to
FY2022. In addition, a management structure for ensuring safety and quality has been put in place.
*2 We have established an internal standard for the maximum permissible exposure of workers that isstricter than the laws and regulations of Kazakhstan, where we conduct the business, and we arecompliant with such standard. Further, no external radiation leaks have occurred in the two years fromFY2021 to FY2022.

Declaration of Iki-iki Waku-waku Health and Productivity Management
The Sumitomo Corporation Group aims to be a company in which all employees work with energy (Iki-iki), excitement (Waku-waku), and in good health, taking on challenges to create newvalue.
Our Group’s Corporate Mission is: “To achieve prosperity and realize dreams through sound business activities.” In order to fulfill this mission, it is necessary for all employees to perform attheir highest level and to continue to create new value. To this end, it is crucial that each employee maintain good health.
As a human resources strategy, the Sumitomo Corporation Group will engage in “health and productivity management” that allows employees to work with energy, excitement, and good health,and creates value by further enhancing existing measures for maintaining and promoting employee health.
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HR Management: Work Environment / Workplace Culture
System
Employee Engagement: Health and Safety Committee

Health Management Promotion Structure
Health management is carried out through the following structure to maintain and enhance the health of

Sumitomo Corporation holds a monthly health and safety committee meeting, which is attended by labor

employees under the direction of the Assistant CAO (Executive Officer) who serves as the Safety andunion officials on behalf of employees, to receive reports on worksite patrols by an industrial physician and

Health Manager.

discuss health promotion for employees and better work environments. A roundtable conference on work
styles is also held twice a year by management and the labor union, where participants exchange opinionswith a view to improving work styles qualitatively and quantitatively in terms of appropriate working hours
for union members.

Employees

Sumitomo Corporation seeks to enable all employees to generate newvalue while working in good health.

Crisis Management System
In order to prepare for the incidents, accidents, and disasters that could occur anywhere in the world, each
employee all over the world always needs to be aware of risks and appropriate safety measures. At the

Declaration of Iki-iki Waku-waku Health andProductivity Management

same time, each organization also needs to develop an infrastructure for safety measures to prepare for

1. Improve health literacy

emergency. In addition, in the event of an emergency, immediate report of the incident is crucial to provide
a support and promptly resume business operations.
We have therefore centralized reporting of all domestic and international emergency cases to the Disaster
Response and Safety Management Dept. and ensure prompt reporting to the president and established

2. Reassurance in emergencies

Implementation
systemcompanywide structure in order to promptly provide necessary supporting activities by appointing the

3. Global medical support

executive in charge of human resources, general affairs and legal affairs as General Manager of Crisis
Management Team.. When a major natural disaster occurs, We will react promptly based on our

Assistant CAO(Safety and Health Manager)

fundamental policy, which is to prioritize (1) employees’ safety, (2) mutual assistance, and (3) prompt

Employee Relations &Compensation Dept.

Safety and HealthCommittee (meets monthly)

Labor Union

Corporate Health
Insurance Society

organization by implementing a crisis management program from FY2021. This activity includes not only

Clinic (internal medicine
and dentistry)

SCG Counseling Center

Consultations

Officers & Employees(Duty to Maintain Health)policy.
Most recently, we have been improving the effectiveness of the business continuity plans (BCPs) of eachIndustrial Physician

Exams &
Consultations

recovery of business operations. We have created manuals to inform all officers and employees of thisformulating plans but also conducting exercises, reviews, and then making improvements through PDCA
cycle. Furthermore, in January 2022, we established a dedicated team within the Disaster Response andUseKoriton Massage Room

Safety Management Dept. to strengthen the work safety systems of group companies and support
emergency responses and recurrence prevention measures in the event of a work-related accident. We
also gather safety management-related information, gain experience, and share best practices within theentire Group.

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HR Management: Work Environment / Workplace Culture
SystemReporting of Work-related Accidents

OHSAS18001, ISO45001-certified Facilities

If an accident occurs, it must be immediately reported to the Disaster Response &As of December 2020, 4 of 372, or 1.1% of Sumitomo Corporation consolidated

Safety Management Dept.. The number of occupational accidents reported incompanies, had been certified to OHSAS18001 Certification.

Sumitomo Corporation’s Employee last 5 years are as follows:

As for ISO45001, which was issued in March 2018 and is recommended for transition,
we have confirmed that the following five companies have obtained ISO 45001 as ofMarch 2023.

Number of work-related accidents
FY2018FY2019FY2020

FY2021

FY2022KIRIU CORPORATION

1 case3 cases

2 cases

2 cases

2 cases

FUJIWA MACHINERY INDUSTRY （HUBEI） CO., LTD.
FUJIWA MACHINERY INDUSTRY (KUNSHAN) CO.,LTD

We have been holding the Work Safety information Committee that consists of

Efficient Homes Australia Pty Ltd.

persons in charge of internal control in each sales division every other month since

Aver Asia (S) Pte. Ltd.

last July. We share the occurrence situation of SC group’s occupational accident
cases, and preventive countermeasures as the best practice.
Against fatal or very serious occupational accidents, our Disaster Response & Safety
Management Dept. makes an immediate report to the president and authorized
members. They also share the information that includes root cause analysis andtemporary counter measures.

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HR Management: Work Environment / Workplace Culture
SystemClinicSumitomo Corporation has an in-house clinic (internal medicine and dentistry) tosupport employees’ health management on a day-to-day basis.

SCG Massage
Room"Koriton“

The “Koriton” massage room was opened in the Harumi Triton Square in April
2008 as a place where SCG employees can receive relaxing therapy.

Subsidies for
Costs of Health
Checkups andComplete
PhysicalExamination

The in-house clinic provides services such as periodic health checkups (for thoseunder 35), a health checkup immediately after joining the company, and healthcheckups before and after overseas transfer. Employees aged 35 and older are
required to undergo a complete physical examination at an external medical facility.
Its cost can be covered by the Corporate Health Insurance Society.

Reimbursement of Influenza
Vaccination
Expenses

As a part of efforts to prevent infectious disease, influenza vaccinations are offeredin the Head Office building, and the Corporate Health Insurance Society
reimburses insured employees and their dependents when they receive such
vaccinations at outside clinics.
Indication
Percentage of Employees
Undergoing Health Checkups

Health Results
Indicators

Stress check Implementation
rate
Smoking rate

Target

FY2018FY2019FY2020

FY2021

FY2022

100%

100%

100%

100%

100%

100%

90％

88.1%

88.5%

89.9％

90.6%

88.7%

10％

‐

18.0%

ー

13.7%

13.3%

15％

‐

4.6%

2.9％

19.1%

20.7%

Rate of female employees
under 35 years old who
undergo gynecological exams

Conduct of
Employee
HealthAwareness
SurveyA health awareness survey has been conducted annually since 2019 to measure
the effects of health management measures and presenteeism*, as well as todiscover health issues specific to the company.
*A condition where an employee reports to work but experiences a decline in work
performance that derives from physical or psychological problems.

© 2023 Sumitomo Corporation

HealthGuidancefor Younger
Employees
Expanded

Health guidance is provided by a health nurse from the in-house clinic to younger
officers and employees who have shown deterioration of health data or physicalchanges since joining the Company or in conjunction with changes in their living
environments. From FY2022, we implemented an Under 40s health support
program in collaboration with the corporate health insurance society.

[List] Previous Seminars
Name

Expansionof HealthManagement
Seminars

FormatDecember 2021

Sleep is the Best Weapon of Selfcare

OnlineFebruary 2022

About the Ovum

OnlineJuly 2022

Eating Habits Improvement Seminar

In personand online

October 2022

Femtech Exhibition

In person

December 2022

How to Deal with Mental Health Problems and “Life
Rhythm Theory”

OnlineMarch 2023

The Connection between “Periodontal Disease” andSystemic Disease

OnlineMarch 2023

Mental disorders in Youth and Middle Age ~To survive insociety~

OnlineOnline seminars can be viewed by group company employees and family
members, thereby helping improve health literacy widely.
MentalHealthcare

We provide self-care education and training for managers on mental health and how
to make use of the SCG Counseling Center.

Expanded
Measures
Supporting
Women’s
HealthTo improve the rate of young female employees undergoing gynecological exams,
we have partnered with medical facilities, and raised the subsidy from the corporate
health insurance for the exams. We are also increasing activities such as holding
seminars and sharing information to raise awareness of health issues that are
specific to women.

Support for
Quitting
Smoking

A smoking cessation support program is regularly offered by the Corporate Health
Insurance Society, and those who wish to participate in the program can do so freeof charge. In addition, all office floors at the Head Office are non-smoking areas.

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Recognition

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Initiatives

Principles andPolicies

IBC
Stakeholder
Capitalism
Metrics

HR Management: Work Environment / Workplace Culture
Activities

The Sumitomo Corporation Group established the SCG CounselingCenter in the Head Office to support employees to work energetically andwith enthusiasm. Multiple counselors help solve various problems andconcerns under the motto of “strict confidentiality” and “consultation on
any matters” in the center.
ServiceproviderSCG
CounselingCenterServices

Eligible users

Activities

Counseling in person

Mainly for
employees in Tokyo

Counseling by phone

All employees

Qualified counselors provide
counseling to employees inJapan and overseas.
Qualifications of thecounselors include seniorindustrial counselors, clinicalpsychotherapists, career
consultants, and family
consultants.

Counseling by visiting the Employees in
employee's site
offices and outsideof Tokyo including
overseas

SCG
CounselingCenterExternal
contracting
company

Various seminars

All employees, andtheir families whenaccompanying themoverseas

Implementing seminars for
managers, generalemployees, employees
overseas, and employees'
families

Consultation

Management

Consultation for managers
regarding how to respond totheir subordinatesCounseling in person

All employees

Contracting external
companies to provide
counseling in person, by email, phone, and visiting theemployee's site.

Counseling by phone, byvisiting the employee's
site

Advanced

We introduced an advanced healthcare expense coverage program for

Healthcare

employees to cover substantial financial burden for treatment of medical

Expenseconditions not covered by insurance.

Coverage
ProgramHospital

Introduced© 2023 Sumitomo Corporation(1) Medical
expenses

Employee(3) Payment ofbenefits(2) Request

Sumitomo
Corporation

HealthSupportServices to
Employees
Stationed
Overseas

Measures
AgainstGlobal Health
IssuesSumitomo Corporation has more than 1,000 employees and their family
members stationed in 69 countries and regions (as of April 2023). We
provide these expatriates working in different environments from Japan
with healthcare services to maintain their health, such as support forannual health checkup. Counseling services provided by our in-house clinic
and the SCG Counseling Center are also available for those with mental
and physical disorders.

Currently, many countries around the world are struggling with serious
health issues, such as HIV (AIDS), tuberculosis and malaria, and COVID19. The Sumitomo Corporation Group is determined to take active
measures against these global health issues.
To ensure that officers and employees of our Group have accurate
information about these infectious diseases and take preventive measures,
the Company provides health checkups in advance for officers andemployees who are assigned overseas and when necessary, encouragethem to be vaccinated. We also provide a variety of training prior to theirdeployment. Moreover, we started e-learning and seminars on safetymeasures in response to requests by employees preparing for their firstoverseas business trip and for those looking for the latest information on
infectious diseases. These programs aim to enhance awareness of crisis
management and disseminate accurate and up-to-date information. We
make these programs available to all the Group officers and employees
within and outside Japan. Through these activities, we support employees’
health and safety while they are overseas.

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IBC
Stakeholder
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HR Management: Work Environment / Workplace Culture
Activities▌ Education on Crisis Management
Sumitomo Corporation offers a variety of training programs and seminars in order to foster crisis awareness and to equip each employee with necessary knowledge.
As a countermeasure against natural disasters, the Tokyo Head Office has systems in place for establishing the Crisis Management Team. Each year that team conducts tabletop exercises andemergency response exercises at each floor of the Headquarters in anticipation of an earthquake under the Tokyo Metropolitan area. At the same time, we also developed impact based BCPs for
the Group that can be used to respond to multiple disasters, including not just earthquakes, but also typhoons, floods, and pandemics, etc., and encourage each organization to conduct exercises
as well.
As safety measures for Group employees working or travelling abroad, we have prepared safety manuals and provide information to increase awareness about safe behavior at each location. We
also provide various e-learning and practical training programs with levels from beginner to advanced, depending on the experience of each employee. Further, we have built systems to provide
prompt and effective supports by cooperating with regional offices in case of emergency there. We have also established systems together with overseas offices to obtain real-time information on
every risk (conflicts, terrorism, riots, casualty, and natural disasters, etc.) occurring in the world, and share the information with relevant parties.

║ Activity Description
PT FUMAKILLA INDONESIA
Under the slogan “protecting people‘s lives,” Fumakilla Indonesia has been working for over 30 years in theIndonesian market, where protection of people from Dengue fever, malaria and other infections is a daily
concern. It has made slow but steady efforts in spreading its high-quality mosquito repellent coils to every
corner of the region. As a result, it now has the largest share in the Indonesian market and contributes toaddressing local social issues. In terms of social contribution, not only the product performance but also themarketing method applied there (a business model called BOP to deliver products directly to general users inemerging countries) are significant. With completion of a new research lab with the latest equipment in FY2021,
the company now also has a new product development system in place for pursuing greater efficacy andsafety. Since its foundation in 1991, we have been continuing our investment (current share of 20%). Our
employees assigned there also support the local operation of Fumakilla.

© 2023 Sumitomo Corporation

Mosquito repellent coil of Fumakilla

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Principles andPolicies

IBC
Stakeholder
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Metrics

HR Management: Work Environment / Workplace Culture
Activities║ Activity Description
Continuing and developing the health and safety management system we have cultivated over the years
The Metal Products Business Unit continues to develop

accidents.

and Environmental Hazards) to promote and establish HSSE

globally in various industries, and in all of its businessSpecifically, we encourage the introduction of Total Quality

as a part of the organizational culture. In order to put this into

activities, the unit places the utmost importance on ensuring

Management (TQM) at each company in order to establish

practice, we assigned ISO 45001 experts to major overseas

the health and safety of its employees, implementing several

the foundations of an effective safety system and further

bases and developed an IT system, for sharing local lessons

key measures in support of this philosophy. Typicalinstill a culture of safety in all aspects, from the management

and good practices globally across the Group, and an

examples are the global initiatives for zero accidents in Steelthat leads the company to the manufacturing sites of

education program including e-learning courses. In this way,

Service Center Business Groups(Steel products related

business companies. We constantly seek to improve thewe are focusing our efforts on developing environments

business) and the global HSSE management system for

quality of management and ensure consistency individual

where our employees can work safely and with peace ofeliminating occupational and environmental accidents in thetargets as well as striving to enhance awareness of safetymind.

tubular products business.

andGoing forward, we will continue to fulfill our social mission by

The Steel Service Center Business Groups (Steel products

communicating the status of these defined targets.

building a better working environment, aiming for “Zerorelated business) conducts business in more than ten

An example of support activities is the support for provided

Accidents” in both the steel and tubular products business.

countries, including Japan, and in a wide variety of industries

periodic self-audits conducted by companies based on a

including automobiles, electrical machinery, electronics, and150-item safety checklist provided by the Safety, TQM &building materials. In each case, safety measures are

Quality

tailored according to the conditions of each Steel Service

customers, formulating action plans for identified areas ofCenter Business Group. Central to the implementation of

improvement and following up on the status of improvement

these safety measures, at each of the sites, is the Safety,(during the COVID-19 pandemic, this activity has been

TQM & Quality Control Team in the Division Planning &conducted by online conferencing).

Coordination Dept, of Sumitomo Corporation Global Metals

InCo., Ltd., which performs that role of an internal advisor andestablished a 12-item HSSE management system based onprovidesthe slogan “Beyond Zero Harm”(Eradication od Occupational

supportforthe© 2023 Sumitomo Corporation

eliminationofoccupational

incentives

theControltubularbyTeam

continuously

responsible

products

relatedmonitoringfor

visiting

business,

we

and

major

have

HSSE Management System PDCA Cycle

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IBC
Stakeholder
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Metrics

HR Management: Work Environment / Workplace Culture
Activities║ Activity Description
G-CMSD HSE Initiatives” Aiming to achieve Zero Serious Incidents bycombining the expertise of the Global Construction and Mining Systems Division
The Global Construction & Mining Systems Div. (G-CMSD) established the G-CMSD HSE Promotion
Office in 2018. By making full use of its global human resources, the HSE Promotion Office started
implementing Health, Safety & Environment (HSE) activities with the aim of eliminating serious
industrial incidents and improving HSE activities at all G-CMSD Group companies.
The office formulated a vision and HSE standards, publishes a monthly Safety News report, issues

Visiting an Group company for asafety audit

Safety Alerts to share examples of incidents, and has conducted safety inspections (gap analysis) of
the Group companies. From FY2022, we started conducting safety audits which are more detailed andcomprehensive than the gap analysis and has audited three companies in FY2022, with plans to audit
another four companies in FY2023. As part of safety education, it also conducts safety training for new
division members and all employees who are dispatched overseas. To facilitate communications within
the Group, the office is encouraging further activities such as creating a portal in March 2021 and theintroduction of Safety Awards, which recognize excellence among the Group companies.

Safety Alerts are used to share
information about findings andcorrective actions of incidents.
© 2023 Sumitomo Corporation

Safety inspections are conducted at each company. Best practices
are identified and shared for other Group companies to emulate.
Activities are implemented by using HSE experts from Group
companies

Construction Machinery Business
Construction Equipment Rental Business Expanded Globally
In Japan and the United States, which are advanced construction equipment rental
countries, we are developing the business through TAIYOKENKI RENTAL CO., LTD., andSunstate Equipment Co., LLC, respectively. In Southeast Asia where further mechanization
and rental demand expansion is expected, we are also operating through Aver Asia (S) Pte
Ltd. Because customer needs are growing more diverse with increased awareness ofworkplace safety and productivity, we aim to provide new value by upgrading services
utilizing IT and DX, such as enhancement of rental products and offering of various rental
apps. We will take advantage of the knowledge of business operations cultivated in eachareas while also efficiently allocating managerial resources between group companies. By
providing and promoting the use of highly reliable and economically efficient machinery, we
will contribute to the realization of a sustainable circular economy.

Machinery yard at Sunstate Equipment

Corporate culture of people and teamwork

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Metrics

HR Management: Work Environment / Workplace Culture▌ Workstyle Reform
As per our Global HR Management Policy, we aim to build a “Great
Place to Work” where diverse individuals continuously andpassionately create new value. In this context, we offer a range ofwork style options so that each individual, with their diverse values
and lifestyles, to maximize their performance both at work and in
private to enrich their overall quality of life. By cultivating anenvironment that enables employees to work autonomously andflexibly, we promote an output-oriented approach to work to generatehigh added value.

Creation of an
Environment
Where Diverse
Individuals canDemonstrate
their Fullest
Abilities

Reductionof Overtime

Reduction of Overtime- Training and seminars on Labor Management- Periodic labor-management roundtable discussions

Training and Seminars on Labor Management
We provide training on labor management as a part of the newly appointed
manager training and newly appointed team leader training programs. We
undertake ongoing educational activities, including holding seminars onlabor management and productivity improvement, to raise awarenessregarding labor management.

Promoting usage of Entitled Leaves- Promoting use of paid leave- Spouse maternity leave, Refreshment leave, Volunteer leave
Promotion of Flexible Work Styles- Teleworking system- Super flexible work hours system- Free dress code

From the past, Sumitomo Corporation has promoted a smart balance ofwork and life under the concept of “work with full energyˮ and “enjoy private
life.ˮ As business is becoming diverse and sophisticated, so are the job
types and tasks. Under these circumstances, managing uniformly to
reduce working hours is not a suitable option. At the same time, merely
working long hours does not necessarily result in better achievement. In
terms of improving global competitiveness, company-wide efforts are being
taken to foster an output-focused work style that generates added value.
We have various programs to support such a mindset shift and to shareuseful information.

Promoting
the Use of
Entitled
LeavesSumitomo Corporation promotes a smart work style with the aim of
improving productivity to achieve the maximum results in a limited time.
Efforts to achieve this goal include the setting of a company-wide target for
the number of paid leaves to be taken in a single year through 2016 to
2019. The number of days of paid leave taken has steadily increased, andthe targets were achieved. Starting in 2020, rather than setting a companywide target that applies uniformly to all employees, we adopted a policy ofallowing each organization and individual to exercise autonomous
management.
Average Paid Leave Taken by Employees
2021: 12.8 days
2022: 13.7 days

© 2023 Sumitomo Corporation

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IBC
Stakeholder
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HR Management: Work Environment / Workplace Culture▌ Workstyle Reform
As a part of our efforts to develop flexible work environments that promote theautonomy of employees, we focused on the “location” and the “time” of work
and introduced the teleworking system and the Super flexible work hours
Dress Codesystem in 2018. To build on these systems, in April 2020, we modified theModification

dress code to further promote mindset shifts in the individual and theorganization as well as autonomous work styles. After reviewing current rules
on attire, we eliminated dress codes as long as it is within the scope of▌ 0→1 Challenge
0→1 Challenge (Zero to One Challenge) is an internal entrepreneurship program launched in
FY2018,where all Sumitomo Corporation Group employees worldwide regardless ofaffiliation or title are eligible to participate. Its aim is to enable individuals in each workplace torealize new business ideas. The concept of the challenge is to create businesses from zero(ideas never seen before) to one (creating next-generation businesses). In addition to creating
new businesses, the program serves as an opportunity for employee development and fosters acommon sense and appropriate for work and the workplace based on TPO.

culture of taking on challenges. The visions and aspirations of previous participants, who have

In 2018, we adopted a teleworking system and expanded flexibility aroundthe company and led to a change of mindset among employees. About 1,000 applications were

work location, with workers able to work at home or any of the hundreds ofcontracted satellite offices up to a certain number of days. In principle, there
are no restrictions to the use., and employees with different circumstances,
Teleworking

such as providing childcare and long-term care are provided an opportunity to

Systemwork proactively and flexibly. Since 2021, we have been encouraging the bestmix of work style that allows employees to autonomously combine in-office andremote work in a well-balanced manner to maximize the performance of theorganization. As a result, the average in-office attendance rate in FY2022 wasapproximately 60%.

worked with enthusiasm and dedication to realize their own ideas, have had a ripple effect toreceived over the five years from FY2018 to FY2022. As of the end of FY2022, 11 ideas,
including ones that passed the selection process in previous years, are in the process ofachieving commercialization. Program participants are working passionately to bring to reality
new ideas that are both new to Sumitomo Corporation Group and that respond to new trends inour society. Even after the challenge is over, previous challengers play active roles in theirorganization, and audiences of the pitch contests witness the participants' challenges andbecome inspired. This program energizes the organization and leads to new initiatives inexisting businesses and increased interaction with others internally and externally.

In 2018, we abolished the flexible “work hours system”, under which
Super
FlexibleWork Hours
Systememployees were required to be present during the fixed core hours from 11:00
to 15:00, and newly adopted the “super flexible work hours system.” The new
system has no core hours. Employees can start and end their work at any time
during the flexible time band from 5:00-22:00. This system allows employees
to design and manage their own work style, leading to further improvement ofboth the organization’s and the individual’s performance.

EMEA-CIS© 2023 Sumitomo Corporation

Americas

Asia

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HR Management: Work Environment / Workplace Culture
Activities▌ Relations with Employees (Labor Union)
Based on the collective agreement with the Sumitomo Corporation Labor Union, Sumitomo
Corporation provides its employees with explanations of management policy and business status,
as well as opportunities to discuss wages, labor conditions, personnel affairs, safety and health,and employee benefits on a regular basis. The agreement defines that the company must
maintain and improve employment conditions and ensure stable lives for employees, and thelabor union must keep order and discipline at work and make an effort to increase labor
efficiency, and both parties must cooperate with each other in developing the company‘sbusiness. To achieve this objective, we make every effort to have serious and sufficient
discussions on each specific project, while ensuring mutual understanding and trust. In addition
to matters for collective bargaining and negotiations on an official level, we hold various meetings
to share opinions on a wide range of issues. They include informal meetings with the president,
round-table discussions on business performance, medium-term management plan and related
issues, Human Resources Strategy and personnel systems, and work styles. We also holdseminars organized jointly with the labor union. Sumitomo Corporation adopts a union shop
system in which all employees participate, excluding executives above a certain level andemployees classified as non-union members based on an individual agreement considering thenature of their jobs. As of March 2023, the number of members of the Sumitomo Corporation
Labor Union is 3,107, accounting for 62% of all employees of Sumitomo Corporation (non-▌ Engagement Survey
Since FY2022, Sumitomo Corporation has been conducting the Engagement Survey*1 for all of
its employees. There is a positive correlation between the level of employee engagement andorganizational profitability and productivity. This survey is intended to be used as one of the
management indicators to grasp the current state of the company toward the realization of ourvision, and to continuously implement realistic actions. The results of the survey are affected by
not only the area of HR management but also by various factors such as business strategy,organizational structure, and work procedures. By carefully interpreting them, we are promoting
various measures at the company-wide and on-site levels. From FY2023, the survey isconducted for all employees worldwide, including locally hired employees in domestic andoverseas offices, and “Employee Engagement”*2 has been added as one of the indicators forcalculating stock compensation in the executive compensation system.
In addition, we have set year-on-year improvement in Employee Engagement as a target
calculated in the Engagement Survey as a target, and are checking whether it has beenachieved.
*1 Previously, Employee Awareness Surveys were conducted once every three years.
*2 A collective term for “Employee Engagement Index” and “Employee Enablement Index” bothof which are calculated in the Engagement Survey.

consolidated basis).

© 2023 Sumitomo Corporation

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Social Contribution Activities
Policy and Concept
The Sumitomo Corporation Group work to resolve social issues through its businessactivities and its social contribution activities with the aim of contributing to create asustainable society by fulfilling its Management Principles and Activity Guidelines as a

Activities▌ FY2022 Social Contribution Activity Costs║ Total Social Contribution Activity Costs (unit: million yen)global business group.

The Sumitomo Corporation Group’s Basic Principles on Social
Contribution Activities

Head office
operational
Programs
452

OBJECTIVE
We, as a global organization, will work on social issues through our business activities
and social contribution activities with the aim of building a sustainable society byimplementing the Sumitomo Corporation Group’s Management Principles and Activity
Guidelines.

ACTIVITIESWe will engage in social contribution activities aimed at developing the next
generation of human resources who will drive the sustainable development of society
and contributing to local communities in areas we do business all over the world. We
will also take part in various activities as a good corporate citizen.

APPROACH
We will perform and seek to continuously improve our activities with modesty and highaspirations and endeavor to maintain a high level of transparency while strengthening
our relationships with all our stakeholders.

© 2023 Sumitomo Corporation

Head office andregionalorganizations inJapanand abroad
1,045

FY2022 results
1,910million yen

Consolidated
subsidiaries
864

Generaldonations/advertising, etc.
435
Operation at
local
organizationsin Japanand abroad
158＜Notes＞* The values above for local organizations and consolidated subsidiaries were
calculated based on questionnaire results.
* Does not include Associated companies.
* Values reported by overseas offices were converted to yen using the exchange rate
as of February 2023.

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Developing the Next Generation of Human Resources▌ The TOMODACHI Sumitomo Corporation Scholarship Program (Since 2014）
Sumitomo Corporation participates in the TOMODACHI Initiative, a program of exchange
between Japan and the United States led by the U.S. Embassy in Tokyo and the U.S.-Japan
Council. We organize a scholarship program for.
university students that are sent to the United▌ The Sumitomo Corporation Scholarship (Since 1996)
We set up the Sumitomo Corporation Scholarship in 1996, the year of our 50th anniversary inthe trading business. The purpose of the scholarship is to help emerging Asian countries,
Mongolia, Bangladesh, Pakistan, etc., develop the human resources who will lead thecountries’ futures. The number of students who have benefited from the scholarship totaled
17,000 by the end of FY2022.

States as exchange students. We provide not only
financial support but also training opportunities at
Sumitomo Corporation of Americas Program
participants have access to experiences notavailable on campus during an overseas study
break. By FY 2022, 67 students had participatedin this program.
Please see here for more details on TOMODACHI Sumitomo Corporation Scholarship Program.

▌ Junior Philharmonic Orchestra (Since 1992)
The late composer Setsuo Tsukahara wanted to “contribute through the orchestra to the growth of the next
generation.” For 30 years, Sumitomo Corporation has been a supporter of the Junior Philharmonic
Orchestra that he established. This youth orchestra consists of approximately 80 musicians in ages ranging
from elementary school to university. We hold the Sumitomo Corporation Young Symphony Concert sometimes a year, giving more performance opportunities to members of the orchestra. Performing withprofessional musicians on the same stage gives a precious opportunity for the members to show the resultsof their daily hard work.

▌ Sumitomo Corporation Scholarship Program in the Sultanate of Oman
(Since 2019)
Aiming to contribute to private–sector exchange between Japan and Oman and to thedevelopment of future leaders in Oman, Sumitomo Corporation and Sumitomo Corporation
Middle East FZE have launched the scholarship program and have been supporting Omani
students studying at graduate schools in Japan.
Under this Program, Sumitomo Corporation
Middle East provides Omani students studying
at Japanese graduate schools with tuition andliving expenses for two years plus round-trip
travel expenses. Additionally, Sumitomo
Corporation supports students in selecting andapplying graduate schools in Japan, andcompleting admission procedures.
Social Contribution Activities© 2023 Sumitomo Corporation

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Social Contribution Activities
Activities▌ Sponsored Lectures at Tsinghua University, China (Since 2006)
Sumitomo Corporation concluded a memorandum of understanding on joint research with the
School of Public Policy and Management, Tsinghua University, in Beijing. Each year, we invite
Japan’s prominent top executives to the university to deliver lectures. Under themes of leadershipand corporate management in global society, lectures attract around 250 attendees, including
professors, government officials, and participants from nearby universities in addition to Tsinghua
University students, and are always concluded with a heated Q&A session. Receiving high praisefrom Tsinghua University, the joint research program will continue into the future.

Contributing to Local Communities in Areas We Do Business▌ Americas║ Aiming for a Zero Hunger through Employee Engagement
Sumitomo Corporation of America‘s volunteer activities have been tackling food security challenges across theregion. In New York, our partnership with City Meals on Wheels enabled NY employees to deliver meals toelderly residents in the neighborhood ensuring that no senior citizen goes hungry over the holidays. In Chicago,
our collaboration with Feeding My Starving Children focused on packing meals containing essential grains, dried
vegetables, and non-perishable items, aiding children in developing countries and addressing hunger issues.
The SC Brazil team partnered with CEI Irma Ildefranca, a school located in the eastern outskirts of São Paulo.
They constructed a home garden and provided valuable lessons on cultivating crops, empowering teachers andyoung children aged 4-6 to grow theirfood. This initiative granted families
increased autonomy in securing asustainable food source.

▌ The University of Tokyo Global Leadership Program (Since 2013)
Sumitomo Corporation supports this program as a leading partner. Through the program,we aim to develop the next generation of leaders who can engage in transverse
collaborations and propose innovative solutions to global issues. We provide financial▌ ASIA & OCEANIA║ Implementing Climate Change Measures through a Mangrove Tree Planting
Project

support to the university for sending students to leading overseas universities on a

Mangroves are known as ecosystems with the greatest carbon

short-term basis. We also provide

storage capacity per given area. PT Sumitomo Indonesia

advice to students who engage inlaunched a mangrove tree planting project in July 2022, on thepractical research and serve as aisland of Sumbawa in the province of Nusa Tenggara Barat,

bridge between them and the realwith the aim of accelerating the development of sustainable

world.

eco-friendly business opportunities. In October of the same
year, 16 employees of the Sumitomo Corporation Group joined
500 local volunteers to plant trees and seeds on the island.

© 2023 Sumitomo Corporation

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Capitalism
Metrics

Social Contribution Activities
Activities

Initiatives at Group Companies║ Activity Description║ Activity Description

CAMP Workshop (SCSK group)

Contribution to Local Communities in Thang Long Industrial Park in
Vietnam

The SCSK Group upholds “Create Our Future of Dreams” as its corporate philosophy. In

We have developed three industrial parks in northern Vietnam: Thang Long Industrial Parks

cooperation with a range of stakeholders, the Group has been conducting social
contribution activities to solve social issues in order to help create a sustainable society.
The Group’s Children’s Art Museum & Park (CAMP) is an activity for children—the next
generation of leaders. By engaging in creative, collaborative activities and presenting theirwork in the workshops, children find how to express themselves in their own way andexpand their circle of communication.
By participating in the workshops as facilitators, Employees gain learning and fulfillment as
well, which help them growth and increase their work motivation.
Since the activity’s launch in 2001, the SCSK Group has held a total of 1,199 workshops
as of the end of FY2022, in which a total of 23,211 children participated.

(TLIPs). More than 230 companies operate in total, which provide for approximately 90,000
direct employment. Sumitomo Corporation, in cooperation with the Vietnamese government,
is operating the Parks to ensure stable supply of infrastructure, including electricity andindustrial water. The TLIPs also support tenant companies in its employee recruitment andlabor affairs.
We organize annual football and marathon competitions at the Parks to promote
community building and increase tenant satisfaction. Last year, we were able to hold ourJapanese-style summer festivals again after being suspended due to the COVID-19
pandemic. In addition, in line with our vision to deeply root our developments within thelocal communities, we provide scholarships for nearby students, carry out traffic safety
awareness-raising activities.
Together through our business and social activities, we will contribute to the prosperity of
everyone related to the Parks as well as the sound development of local communities.

© 2023 Sumitomo Corporation

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Sumitomo Corporation
Group

FeatureEnvironment

SocialSocialESG
Quantitative
Data

GovernanceCommitment
to External
Initiatives

External
Recognition

IBC
Stakeholder
Capitalism
Metrics

Principles andPolicies“100SEED” Social Contribution Program Looks ahead to the Next 100 Years
100SEED

100SEED Launched with Global Group Employees to Mark Centennial

Activities to date

Under the 100SEED social contribution program, Sumitomo Corporation Group employees

We launched activities to address educational issues in each region from 2020.

around the world hold discussions and conduct activities in consideration of the society 100

In FY2022, 53 projects were implemented in 19 countries. Despite the continuing impact ofyears from now.
Selecting “Quality Education” as the global theme,

COVID-19, we have been exercising our ingenuity in each region to gradually expand theSumitomo Corporation will make use of its humanresources to implement this program on a medium- tolong-term basis, thereby contributing to society andachieving sustainable growth together with it.
Mission Statement for 100SEED
We have selected “Quality Education” as the grand theme of the 100SEED (SCEmergent Evolutional Deed) program upheld to mark the Sumitomo Corporation

initiative.
Item

Boundary

Unit

FY2020

FY2021

FY2022

Number of projects(Number of participating
countries)

Sumitomo Corporation
and regional organizations

Projects(Countries)

31
(14)

44
(16)

53
（19）

Number of participating
employees

Sumitomo Corporation
and regional organizations

Employees

696

765

1,506

Group’s 100th anniversary. Under this theme, we are committed to develop andsupport a variety of social contribution activities on a global scale.

In recognition of management involvement, activity

Recognizing that “Quality Education” is a vital part of the sustainable development

targets, progress management and other KPIs, weof society, we will continue to inspire ideas for supporting quality education to

won the special “Tanemaki (Seeding) Century

produce the talent needed to solve the many social challenges facing the world.

Award”

By promoting 100SEED, we encourage our SC colleagues around the world to

Philanthropy Awards.

for100SEED

at

the

19th

Corporate

create opportunities and leverage our diverse capabilities and resources so we canengage in activities that will dynamically realize our goal of “Enriching lives and theworld.”
100SEED provides us a valuable opportunity for personal growth by learning fromothers and pursuing individual ideas through collaboration. We will commit time andresources to social action that will benefit any of us seeking to better society
through quality education.

Refer to the following website for more information on this activity.
100SEED Website- Mission Statement for 100SEED- Enhancing Sustainability Management and 100SEED- The Very First Story- ACTIVITIES AROUND THE WORLD
Please see here for more details on 100SEED.

© 2023 Sumitomo Corporation

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Sustainability of
Sumitomo Corporation
Group

FeatureEnvironment

SocialSocialGovernance

ESG
Quantitative
Data

External
Recognition

Commitment
to External
Initiatives

Principles andPolicies

IBC
Stakeholder
Capitalism
Metrics“100SEED” Social Contribution Program Looks ahead to the Next 100 Years
100SEED

100SEED Projects Around the World║ EAST ASIA

║ ASIA&OSEANIA
BUTTON UP /POWER UP /LIGHT UP Project: Thailand

Educational Support in
Impoverished Areas : China║ EMEA&CIS
PlayPump Installation: South Africa║ AMERICAS
Support for Child
Daycare Services : Brazil║ JAPAN
Career education support
program Mirai School : Japan

Sumitomo Corporation China Group is

Addressing educational challenges in

Many schools in South Africa are facing

With Brazil being added to the Hunger

This project provides educational support

continuing to develop educational

Thailand, this project comprises three

a dire shortage of water, impacting theMap once again as a result of theto the next generation who will lead theenvironments for children in

activities: “BUTTON UP” to create

health and attendance rates of students.

pandemic, Sumitomo Corporation dofuture. Employees visit high schools

impoverished areas of Xiao County,

educational environments for elementary

To address these concerns, this project

Brasil launched a project to provide fresharound Japan to speak about their own

Anhui Province. Money used to support

school children in disadvantaged areas,

continues to install PlayPumps, atfood with the aim of boosting immunity

careers and attitudes to work to provide
students with opportunities to think about

this project comes from employee“POWER UP” to provide 21st century

elementary schools, that pump up

and promoting growth and development

donations and matching sums from theskills for university students before theygroundwater as children play on theof children. Employees donated ten

the future and careers. Over the pastcompany. A range of interactions areenter the workforce, and “LIGHT UP” toplayground equipment. Plans are intimes more than originally planned, which

three years, over 10,000 students at 68

provided, including inviting students toprovide teacher training to raise the level

place to provide water and hygiene

enabled a year’s worth of freshhigh schools have attended the program.

our offices and other locations afterof education.

education through further employee visits

vegetables and fruit to be delivered toin the future.

local childcare facilities.

employees visit the area.

[Summary of activities in FY2022]
Employees: 192 participants

Employees: 186 participants

Employees: 2 participants

Employees: 43 participants

Employees: 86 participants

Total activity hours 145 hours

Total activity hours 1,394 hours

Total activity hours 5 hours

Total activity hours 15 hours

Total activity hours 1,290hours

Number of people (organizations) to besupported: 154(students)

Number of people (organizations) to besupported: 2,510(students)

Number of people (organizations) to besupported: 2(elementary schools)

Number of people (organizations) to besupported: 150(children)

Number of people (organizations) tobe supported: 4,998(high school
students)

Satisfaction: 100%

Satisfaction: 100%

Satisfaction: 100%

Satisfaction: 100%

Satisfaction: 97%© 2023 Sumitomo Corporation

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FeatureEnvironment

SocialGovernance
Governance

ESG
Quantitative
Data

External
Recognition

Commitment
to External
Initiatives

Principles andPolicies

IBC
Stakeholder
Capitalism
Metrics

Corporate Governance
Policy and Concept
Sumitomo’s Business Philosophy and the Sumitomo Corporation Group’s Management Principles form the backbone of the corporate ethics and represent the foundation underpinning ourcorporate governance. Based on this, we established the Sumitomo Corporation Corporate Governance Principles, recognizing that the essence of corporate governance is enhancing
management efficiency and maintaining sound management, as well as ensuring management transparency to secure the first two. Efforts to build a better corporate governance system andcarry out business activities following these principles help the Company to achieve sustainable growth, enhance corporate value over the medium to long term, and fulfill its mission as a good
corporate citizen, as well as benefits the interests of shareholders and all other stakeholders. For this reason, we continuously work to further enhance and improve our corporate governance.

SystemUnder the Audit & Supervisory Board system, the Company elects Outside
Directors and Outside Audit & Supervisory Board Members with independence
from the Company and a high level of insight in their respective specialized fields,
and incorporates more diverse perspectives in the Company’s decision-making
and management supervision. In addition, the Company has established theNomination and Remuneration Advisory Committee, chaired by an Outside
Director and composed of a majority of Outside Directors, to enhance theindependence, objectivity, and transparency of the functions of the Board of
Directors regarding the nomination and remuneration of senior management,
thereby ensuring effective supervision and monitoring of management.
Furthermore, the introduction of the executive officer system that clarifies the
responsibilities and authority of business execution and the establishment of theManagement Council are among the measures designed to promote speedierand more efficient decision-making and execution of business as part of theeffective corporate governance system we have put into place. The Management
Council is the highest executive-level decision-making body that takes into
account diverse opinions and multifaceted discussions in regard to specific key
matters related to management, within the scope of the mandate conferred by
the Board of Directors. It meets in principle weekly, and its members include thePresident and Chief Executive Officer, Officers in charge of the Corporate Group,
Officers responsible for the Business Group, General Managers of Business
Units, and Head of the Initiative.
© 2023 Sumitomo Corporation

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Group

FeatureEnvironment

SocialGovernance
Governance

ESG
Quantitative
Data

External
Recognition

Commitment
to External
Initiatives

Principles andPolicies

IBC
Stakeholder
Capitalism
Metrics

Corporate Governance
SystemDirectors and the Board of Directors▌ Composition of the Board of Directors▌ Adequate deliberation and enhancement of monitoring function

The membership of the Board of Directors is appropriate in numerical terms to facilitate

Agenda items for the Board of Directors are carefully selected by delegating authority to theadequate discussion and speedy and rational decision-making, and provides diversity in terms

business execution side within a scope deemed appropriate in order to promote more focusedof experience, knowledge, specialism, gender, and other characteristics. Moreover, out of the

discussion of management policy and plans and other important matters of relevance to

11 Directors appointed, five are independent Outside Directors with differing experiences andcompanywide management. Agenda setting is carried out where important management topics

specializations to ensure appropriate decision-making from more diverse perspectives and tofor the Board of Directors that should be taken up for more intensive discussion covering thefurther strengthen the supervisory functions of the Board of Directors. The Chairman of thenext one-year period are set by all Board members through careful consideration and

Board of Directors, who convenes meetings of the Board of Directors and presides over them

discussion, with sustainability and personnel strategy, among others, being identified as topics.

as Chairperson, supervises management but does not engage in routine operations and has

Additionally, to further strengthen its business execution monitoring functions, the Board of

no authority to represent the Company. Furthermore, to allow mutual checks and balances, theDirectors receives regular progress reports on each Business Unit/Initiative strategy and on theposts of Chairman of the Board of Directors and President and Chief Executive Officer are in

activities of important committees*1 throughout the year, with the reports followed by aprinciple separate and not to be held concurrently by the same individual.

discussion focusing on companywide issues. Moreover, to further enhance the quality of Board

In addition, the Company established the Sumitomo Corporation Action Plan, and in agreementwith the Japan Business Federation’s goal of at least 30% female executives by 2030
announced in March 2021, we set a target of at least 30% female Directors and Audit &Supervisory Board Members by FY2030.

▌ Independence of Outside Directors
Our five Outside Directors satisfy the standards on independence set by financial instruments
exchanges on which the Company is listed, as well as our in-house rules on Standards for
Appointment and Independence of Outside Directors and Outside Audit & Supervisory Board
Members. Leveraging a different type of experience and expertise, each Outside Director
contributes to our corporate governance by providing a variety of independent viewpoints.

member discussions, the Board of Directors holds off-site meetings*2 separate from in-person
Board meetings to more actively discuss important management topics, including management
policy and plans as well as ESG issues. In particular, looking ahead to the completion of themedium-term management plan SHIFT 2023, which ends in FY2023, the Board of Directors is
carefully monitoring the status of initiatives by the business execution side and providing
support.
*1 Corporate Strategy Promotion Committee, Global Innovation Promotion Committee, Corporate
Sustainability Committee, Internal Control Committee, etc.
*2 A venue involving all members of the Board of Directors that encourages free and frank discussions
Sumitomo Corporation Corporate Governance Principles

Corporate Governance Report

Standards for Appointment and Independence of Outside Directors andOutside Audit & Supervisory Board Members© 2023 Sumitomo Corporation

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FeatureEnvironment

SocialGovernance
Governance

ESG
Quantitative
Data

External
Recognition

Commitment
to External
Initiatives

Principles andPolicies

IBC
Stakeholder
Capitalism
Metrics

Corporate Governance
SystemDirectors and the Board of Directors▌ Evaluation of the Effectiveness of the Board of Directors

1. Evaluation Methods

To maintain and enhance the effectiveness of the Board of Directors, each year
Directors and Audit & Supervisory Board Members engage in analysis and evaluationof the Board’s effectiveness through self-evaluation and other methods. This isfollowed by the disclosure of overviews of the results.
In fiscal 2022, from the perspective of preventing the effectiveness evaluation frombecoming a mere formality and implementing the PDCA cycle to improve thefunctions of the Board of Directors, the members of the Board of Directors discussed
the methods and items of the effectiveness evaluation and made the following
revisions:(1) Individuals Evaluated

1.We have changed the questionnaire from “anonymous” format to “named” format
as we considered that it is important to understand the background of the
respondents and their opinions as well as their awareness of issues in order todeepen discussions based on the opinions expressed in the questionnaire, andjudged that frank exchange of opinions is sufficiently conducted at the Board of
Directors at present.

(3)

All eleven Directors and five Audit & Supervisory Board Members(2) Implementation method
We conducted a questionnaire survey (responses with names) in December 2022. Basedon the results, Directors and Audit & Supervisory Board Members held multiple discussion
to evaluate and analyze the results, and to identify the issues and the initiatives for how
we should improve them.
(i) functions and roles of the Board of Directors(ii) agenda items of the Board of Directors(iii) quality and content of discussion at the Board of Directors(iv) provision of support and information to members of the Board of Directors

2.On top of that, we have decided to stop using a third party for interviews for thiseffectiveness evaluation. Instead, we have decided to enhance the process of
discussing issues and improvement actions among all the members of the Board of
Directors based on the results of the “named” questionnaire.

(v) composition of the Board of Directors(vi) an advisory body to the Board of Directors(vii) fulfillment of roles by the Chairman of the Board of Directors

3.In the questionnaire, while remaining the basic questions unchanged in order toobserve the progress of improvement from a fixed point of view, we have further
narrowed the questions down to the main issues, and have adopted a format inwhich each Director and Audit & Supervisory Board Member wrote freely what he or
she has considered to be issues.
The evaluation for fiscal 2022 conducted in accordance with the above and its results
are summarized below.
Based on the opinions expressed by Directors and Audit & Supervisory Board
Members and issues identified on the effectiveness evaluation for fiscal 2022, we willcontinue to make efforts to further increase the effectiveness of the Board of
Directors.

© 2023 Sumitomo Corporation

Evaluation Items(viii) fulfillment of roles by internal Directors(ix) fulfillment of roles by Outside Directors(x) expectation for roles of Audit & Supervisory Board Members(xi) overall evaluation, etc.
(4)

Third Party Assistance
We received advice and assistance from a third party (external consultant) in determining
the questions for the questionnaire, etc.
(Continued on next page)

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Governance

ESG
Quantitative
Data

External
Recognition

Commitment
to External
Initiatives

Principles andPolicies

IBC
Stakeholder
Capitalism
Metrics

Corporate Governance
SystemDirectors and the Board of Directors▌ Evaluation of the Effectiveness of the Board of Directors
2. Evaluation Results Overview
All Directors and Audit & Supervisory Board Members held discussions based on the results of

In addition, in this effectiveness evaluation, we returned to and discussed the most essential

the questionnaire, and evaluated that the Board of Directors is functioning effectively overall,issues of the Board of Directors, such as “what functions and roles the Board of Directors

with the level of its operations and performance of functions improving year by year throughshould play”. Although it is necessary to continue to discuss this issue, we will carry out theconstant efforts. The main opinions were as follows:

actions including below, to further strengthen and enhance our corporate governance, based•

The agenda of the Board of Directors is systematically discussed and appropriately set. In
particular, monitoring of the implementation of the strategy based on the medium-term•

From the perspective of strengthening both the management and monitoring functions ofmanagement plan is regularly and comprehensively addressed, and sufficient time is spentthe Board of Directors and increasing corporate value, we will continue to set appropriate

on discussions. In the future, it is advisable to spend more time discussing geopolitical events

agenda items and deepen discussions on medium- to long-term management policies.

and other environmental change that may give impact on our management, as well as themedium- to long-term management strategies based on such impact.
•

on the results of this discussion.

•

We will improve the quality of discussions at the Board of Directors by establishing a neworganization to support communications between the Board of Directors and theProviding prior briefing to Directors and Audit & Supervisory Board Members, sharing ofmanagements/officers, and by advancing initiatives such as reviewing agenda items for the

discussions at Management Council and its questions and answers at the advance briefings

Board of Directors, preparing concise materials and organizing discussion points.

with them, and holding of meetings of Outside Directors and Audit & Supervisory Board
Members have invigorated essential discussions at the Board of Directors. The constructive
questions and answers and sufficient exchange of opinions on each agenda have contributed
to the enhancement of monitoring and decision-making functions of the Board of Directors.
•

Outside Directors have provided suggestions and advice based on their expertise andexperience. The Outside Directors have contributed to fulfillment of the supervisory function
by the Board of Directors by providing opinions from the viewpoints of various stakeholders,which are difficult for internal management and officers to recognize.

© 2023 Sumitomo Corporation

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Group

FeatureEnvironment

SocialCorporate Governance

Governance
Governance

ESG
Quantitative
Data

External
Recognition

Commitment
to External
Initiatives

Principles andPolicies

IBC
Stakeholder
Capitalism
Metrics

Audit & Supervisory Board Members and the Audit & Supervisory Board▌ Enhancement of Auditing capabilities

SystemThe Audit & Supervisory Board comprises five members—two Inside Fulltime Audit & Supervisory Board
Members and three Outside Audit & Supervisory Board Members (including one woman). The Inside Audit

Directors and the Board of Directors▌ Establishment of the Nomination and Remuneration Advisory Committee& Supervisory Board Members must have a sincere character, deep insight, and high-level skills as well as
specialized business knowledge and a broad range of experience, and they are appointed without regard

The Nomination and Remuneration Advisory Committee, of which a majority of members arefor gender, nationality, and other such characteristics.

Outside Directors, and which is also chaired by an Outside Director, has been established as an

The Outside Audit & Supervisory Board Members must also have a sincere character, deep insight, andadvisory body to the Board of Directors. The Committee meets as necessary, and is in chargeof deliberating (1) policies and procedures regarding appointment and dismissal of the
President and Chief Executive Officer, (2) policies and procedures regarding appointment anddismissal of the Chairman of the Board of Directors, (3) nomination criteria for Directors andAudit & Supervisory Board Members, (4) appointment and dismissal of the President and Chiefhigh-level skills as well as advanced specialized knowledge, particularly in fields such as law, accounting, or
corporate management, and extensive experience, and they too are appointed without regard for gender,
nationality, and so on. Among the Outside Audit & Supervisory Board Member, one is a legal expert (aformer Chief Justice of the Osaka High Court), one is a certified public accountant with considerable
knowledge of finance and accounting, and the other is a fulltime Audit & Supervisory Board Member of alisted company and has an experience in business management. All of the Outside Audit & Supervisory

Executive Officer (including the nomination of a successor of the President and Chief Executive

Board Members satisfy the criteria on independence set by financial instruments exchanges on which the

Officer), (5) nominations of candidates for Directors and Audit & Supervisory Board Members

Company is listed, as well as the Standard for Independence established by Sumitomo Corporation.

(including determination of Representative Directors and Executive Directors), (6) appointment▌ Ensuring Audit Effectivenessof Management Council members, (7) the structures/levels of remuneration and bonuses for
Directors and Executive officers and the limit of remuneration for Audit & Supervisory Board

Each Audit & Supervisory Board Member attends important meetings such as the Board of Directors
Meeting, receives reports form Directors and employees, etc. regarding the execution of their duties, asks

Members, and (8) the advisor system, and will submit the results thereof as recommendations

them for explanations as necessary, inspects important internal authorization documents and examines theto the Board of Directors. In FY2022, the Nomination and Remuneration Advisory Committee

status of operations and the financial status regarding the head office and important operating locations. As

met 7 times to deliberate the abovementioned matters, and submitted the results thereof as

for subsidiaries, each Audit & Supervisory Board Member promotes communication and exchange ofrecommendations to the Board of Directors.

information with Directors and Audit & Supervisory Board Members, etc. of subsidiaries, and receives
reports on the subsidiaries’ business as necessary.
The Audit & Supervisory Board Members' Administration Department (five employees) has been

▌ Composition of the Nomination and Remuneration Advisory Committee
Total
Members

Internal
Directors

OutsideDirectors

Committee
Chairman

5 persons

2 persons (President and Chief Executive Officer,

3 personsOutside Director

Chairman of the Board of Directors)

established as a specialized organization to support the work of the Audit & Supervisory Board Members.
The Audit & Supervisory Board Members participate in personnel evaluations and transfers and so on
regarding these employees to ensure their independence from the Board of Directors.

▌ Collaboration between the Internal Auditing Department and Accounting
Auditors
To ensure audit efficiency, Audit & Supervisory Board Members interact closely with the Internal Auditing
Department, receiving reports on internal audit plans and their results in a timely manner. In addition, Audit& Supervisory Board Members exchange information with and monitor the auditing activities of theaccounting auditors through regular meetings. By attending audit review meetings and observing inventory
audits by the accounting auditors, the Audit & Supervisory Board Members constantly work to improve© 2023 Sumitomo Corporation

audit efficiency and quality.

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Governance

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Quantitative
Data

External
Recognition

Commitment
to External
Initiatives

IBC
Stakeholder
Capitalism
Metrics

Principles andPolicies

Corporate Governance
System▌ The knowledge, experience and competencies, etc. (collectively, “Skills”) that the Board of Directors is required to possess, and Skills
that Directors or Audit & Supervisory Board Members currently in office possess（as of September 2023）
This table identifies the types of knowledge, experience and competencies, etc. (individually, "Skill" and collectively, “Skills”) that the Board of Directors is required to possess for fulfilling its roles,
and indicates which Directors or Audit & Supervisory Board Members currently in office possess such Skills. In our view, it is important that the Board of Directors as a whole possesses these
Skills. As for the reasons for identifying these Skills, please refer to the explanations in the next page.

Directors

Name

Role

Term ofoffice as
Director

Kuniharu Nakamura

Director, Chairman

Masayuki Hyodo

FemaleKnowledge, experience and competencies, etc.（Skills）
Corporate
management

Investment / M&A

ICT / DX /Technology

ESG /Sustainability

Finance/ Accounting

Legal / Risk
management

Human resourcesmanagement& development

14years
3months

●

●

ー

●

●

●

●

Representative Director,
President and Chief
Executive Officer

5years3months

●

●

ー

●

●

●

●

Shingo Ueno

Representative Director,
Executive Vice President

3months

●

●

ー

●

ー

ー

ー

Takayuki Seishima

Representative Director,
Executive Vice President

4years3months

●

ー

ー

ー

●

●

●

1year
3months

●

ー

ー

ー

●

●

ー

1year
3months

●

●

●

●

ー

ー

ー

Internal

Reiji Morooka

Hirokazu Higashino

OutsideMale

Representative Director,
Senior Managing Executive
Officer
Representative Director,
Senior Managing Executive
Officer

Kimie Iwata

Outside Director

5years3months

●

ー

ー

●

ー

ー

●

Hisashi Yamazaki

Outside Director

5years3months

ー

ー

ー

ー

ー

●

●

Akiko Ide

Outside Director

3years3months

●

ー

●

●

ー

ー

ー

Takashi Mitachi

Outside Director

1year
3months

●

●

ー

●

ー

●

●

Takahisa Takahara

Outside Director

3months

●

●

ー

●

ー

ー

ー

© 2023 Sumitomo Corporation

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Governance

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Quantitative
Data

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Recognition

Commitment
to External
Initiatives

IBC
Stakeholder
Capitalism
Metrics

Principles andPolicies

Corporate Governance
SystemAudit & Supervisory Board Members

NameInternal

OutsideRole

Term ofoffice as
Director

Male

FemaleKnowledge, experience and competencies, etc.（Skills）
Corporate
management

Investment / M&A

ICT / DX /Technology

ESG /Sustainability

Finance/ Accounting

Legal / Risk
management

Human resourcesmanagement& development

Daisuke Mikogami

Senior Audit & Supervisory
Board Member (Full-Time)

3months

●

●

●

ー

ー

ー

●

Kazunari Sakata

Audit & Supervisory Board
Member (Full-Time)

1year
3months

●

●

ー

ー

ー

ー

ー

Toshio Nagai

Outside Audit & Supervisory
Board Member

7years3months

ー

ー

ー

ー

ー

●

ー

Yoshitaka Kato

Outside Audit & Supervisory
Board Member

7years3months

●

ー

ー

ー

●

ー

ー

Yukiko Nagashima

Outside Audit & Supervisory
Board Member

2years3months

●

●

ー

ー

ー

ー

●

About the tables on this page and the previous page
1.

This table identifies the types of knowledge, experience and competencies, etc. (individually, "Skill" and collectively, “Skills”) that the Board of Directors is required to possess for fulfilling its roles, and indicates which
Directors or Audit & Supervisory Board Members currently in office possess such Skills. In our view, it is important that the Board of Directors as a whole possesses these Skills.

2.

Since the Company is active in investing in various businesses, we consider “Corporate management” and “Investment/M&A” Skills to be particularly important. Under the ongoing medium-term management plan,“SHIFT 2023,” we are promoting a business portfolio shift with a focus on digital transformation (DX) and the enhancement of sustainability management as two sweeping trends. To this end, we emphasize the Skill of“ICT/DX/Technology” for business reforms or business development through exploiting digital solutions or the mixture of technology and innovation solutions and the Skill of “ESG/Sustainability” for sophisticating
sustainability management. In addition, the Skills of “Finance/Accounting,” “Legal/Risk management” and “HR management and development” are important for supporting or administering the Company’s business
operations.

3.

The key Skills for Audit & Supervisory Board Members on which a high priority is placed are "Corporate management", "Finance/Accounting", and "Legal/Risk management", since they are responsible for auditing
Directors’ execution of duties.

4.

Since the Company carries out business transactions and investments all over the world, respective Directors or Audit & Supervisory Board Members are required to have a keen insight from a global perspective.
Knowledge concerning “governance” is another indispensable skill for serving as a Director or Audit & Supervisory Board Member. Because we mandate that all Directors and Audit & Supervisory Board Members
possess such two skills, they are not included in seven Skills that are indicated in the table and selected in paragraph 2 above.

5.

The Skills that the Board of Directors are required to possess may vary according to business strategies or changes in the external environment. This table will be updated from time to time based on the Board of
Directors’ review and discussions on required Skills.
Please refer to our website for the reasons for appointing and summary of expected roles of Outside Director.

© 2023 Sumitomo Corporation

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Governance

ESG
Quantitative
Data

External
Recognition

Commitment
to External
Initiatives

Principles andPolicies

IBC
Stakeholder
Capitalism
Metrics

Corporate Governance
SystemInitiatives to Ensure Transparency of Business Management

Status of Compliance with the Japan's Corporate Governance Code▌ Establishment of Disclosure Policy

The Company complies all Principles of the Corporate Governance Code. Please refer to

To ensure that all stakeholders correctly understand its business management policy andCorporate Governance Report for details.

Corporate Governance Reportbusiness activities, the Company not only discloses statutorily required information but also
actively discloses information on a voluntary basis.
Corporate Disclosure Policy▌ Policy on Cross-shareholdings and Standards for
Exercising Voting Rights
As a general rule, the Company will neither acquire nor hold shares in other listed companies
for purposes other than pure investment. However, the Company may decide to hold shares inlisted companies in some exceptional cases when the Company determines that it isappropriate. For such determination, the Company will comprehensively assess and verify thecapital cost of individual stocks and economic rationality and significance of holding the stocks
in light of the necessity of partnering or other business needs. Each year, the Board of Directors
reviews whether or not the Company’s holding of listed shares is appropriate. If such annual
review concludes that specific shareholdings are of little significance, the Company will pushahead with the sales of the shares. In FY2022, the Company sold shares of 22 listed stocks(either in whole or in part), amounting to ¥33.8 billion in total. As of the end of March 2023, theCompany’s shareholdings in listed companies cover 59 stocks, with the total balance of ¥190.7
billion.
The Company also takes various considerations into account under the internal guidelines
when making decisions in exercising its voting rights. Having fully considered issues from bothquantitative and qualitative standpoints, it adequately exercises voting rights for each agenda
based on whether exercising voting rights will lead to enhanced medium- to long- term
corporate value at the investee company and the Company and to enhanced value for its own
shareholders. When a company holding the Company’s stock for purposes other than pureinvestment indicates intent to dispose of its holdings, the Company respects the decision inprinciple and ensures that their business relationship will not be influenced.

© 2023 Sumitomo Corporation

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Governance

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Quantitative
Data

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Recognition

Commitment
to External
Initiatives

Principles andPolicies

IBC
Stakeholder
Capitalism
Metrics

Corporate Governance
SystemExecutive Remuneration▌ Executive Remuneration Plan

▌ Remuneration Standards and Remuneration Composition Ratios(● indicates the persons eligible for each type of remuneration, etc.)
Eligibility

Type of remuneration, etc.

Executive Directors/Executive Officers
*1

Fixed

Monthly Remuneration
Performance-Linked
Bonus

Chairman of theBoard ofDirectors*2

OutsideDirectors*3

Audit &
Supervisory
Board Members
*4

●

●

●

●

●

－

－

－

●

●

－

－

We have set appropriate compensation levels and compensation composition ratios based on ourbusiness environment and management and human resource strategies, using objective
compensation market survey data (*1) from an external organization specialized in the field as areference.
*1 WTW’s Executive Compensation Database

The following is an image of the remuneration of the Representative Director, President
and CEO.

Variable Restricted Performance
Share Unit-BasedRemuneration*1 The remuneration of Executive Directors and Executive Officers consists of “monthly remuneration,” “performancelinked bonus”, and “Restricted Performance Share Unit-based remuneration.”*2 The remuneration of the Chairman of the Board of Directors, whose main role is management supervision as stipulated
in the “Sumitomo Corporation Corporate Governance Principles,” consists of “Restricted Performance Share Unit-based
remuneration,” which contribute to improving shareholder value, in addition to “monthly remuneration.”*3 The remuneration of Outside Directors, who are in a position to supervise management with a high degree of objectivity
and independence, consists solely of fixed remuneration (“monthly remuneration”) and is provided on a monthly basis.
*4 The remuneration of Audit & Supervisory Board Members, who are in a position to audit and supervise managementwith a high degree of objectivity and independence, consists solely of fixed remuneration (“monthly remuneration”) and isprovided on a monthly basis. The remuneration of each Audit & Supervisory Board Member is decided through discussions
between the Members within the maximum amount approved by shareholder resolutions.

▌ Revisions to Executive Remuneration
The Restricted Performance Share Unit-based Remuneration system with transfer restrictions
has recently been partially revised. The revision includes the addition of non-financial indicators
to the calculation indexes with the aim of promoting efforts to optimize the business portfolio
over the medium to long term, enhance corporate value, achieve sustainable growth, andresolve important social issues by increasing linkage with indicators related to the environment,
society, and corporate governance, so that the company can be more conscious of its
commitment to advanced sustainability management, in addition to sharing shareholder value.
© 2023 Sumitomo Corporation*2 “Consolidated net income” is equivalent to the “profit attributable to owners of the parent” set out
in International Financial Reporting Standards (IFRS).
Basic profit cash flow” = “Basic profit*” – “Share of profit (loss) of investments accounted for using the equity
method” + Dividend from investments accounted for using the equity method.”*“Basic profit” = (Gross profit + Selling, general and administrative expenses (excluding provision for doubtfulreceivables) + Interest expense, net of interest income + Dividends) × (1–31%) + Share of profit (loss) ofinvestments
accounted for using the equity method.
Stock price growth rate = {(Average price of Company’s common shares in relevant fiscal year) ÷ (Average
price of Company’s common shares in the previous fiscal year)} ÷ {(Average of TOPIX in relevant fiscal year) ÷(Average of TOPIX in the previous fiscal year)}
Stock growth rate = {(Average price of Company’s common shares in the month of termination of Evaluation
Period) ÷ (Average price of Company’s common shares in the month of commencement of Evaluation Period)}÷ {(Average of TOPIX in the month of termination of Evaluation Period) ÷ (Average of TOPIX in the month ofcommencement of Evaluation Period)}
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Governance

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Quantitative
Data

Commitment
to External
Initiatives

External
Recognition

Principles andPolicies

IBC
Stakeholder
Capitalism
Metrics

Corporate Governance
System▌ Performance-linked Bonuses▌ Restricted Performance Share Unit-based Remuneration

From the perspective of reinforcing the relationship with management strategy, the total amount to be paid
is determined in accordance with the performance management index in medium-term management plan
SHIFT 2023, as well as the stock price growth rate (ratio of our stock price growth rate to TOPIX (Tokyo
Stock Price Index) growth rate).
Bonuses paid to individual officers
is distributed according to theirposition and personal evaluationand paid after the end of the
fiscal year.

To further encourage management to focus on promoting efforts to increase the Group’s corporate
value over the medium to long term and sharing value with its shareholders, the number of shares tobe granted as remuneration is calculated annually according to the ratio of our stock price growth rate
to TOPIX (Tokyo Stock Price Index) growth rate over the three-year evaluation period. Additionally, therecent system change has increased a linkage with non-financial indicators related to the environmentand society so that the commitment to the advancement of sustainability management can bestrengthened further. It now reflects the evaluation results of non-financial indicators (“response to
climate change issues,” “promotion of women's success,” and “employee engagement”) in order tofurther promote efforts to solve important social issues. Common shares (restricted) of the Company
will be issued to each officer.

The potential range of business results in terms of consolidated net income and basic profit cash flow is set
to ¥200 billion to ¥600 billion. If business results fall outside this range, the total
amountofperformance-linked
bonuses to be paid will be decided
separately by the Board of Directors
based on the report from theNomination
andRemuneration
Advisory Committee. In addition, therange of the company’s stock pricegrowth rate is assumed to be between
80% and 120%.

Each Executive Director is evaluated on the basis of both financial and non-financial indicators so that they
can become more aware in regard to their commitment to management strategy and results. Financial
indicators mainly consider the status of achievement of the business plans in the respective areas of
responsibility. Non-financial indicators take into account the status of achievement of strategies of each
SBU measured by KPIs and KAIs as well as the status of initiatives to address important companywide
issues.
The ratio of financial indicators to nonfinancial
indicators in personal evaluation is 50:50. Of
evaluation based on non-financial indicators, 20%
relates to the important companywide issues ofbusiness reform through DX, enhancement ofsustainability management, and promotion of D&I.

© 2023 Sumitomo Corporation

The restriction period will be fromthe day the shares are provided until
the day the recipient resigns orretires from all their positions as
Director or Executive Officer of theCompany or any other position
determined by the Board of Directors,
in order to realize shareholder value
over the medium to long term.

The Company’s Stock Growth Rate and Percentageof Shares Granted Based on Non-Financial
Valuation

Evaluation Periods of the Company's Stock Growth Rate and Non-Financial
Indicators (Image)2023
Plan 2023
Plan 2024
Plan 2025

2024

2025

Evaluation Period

2027

2026

2028

●Share grant

Evaluation Period●Share grant

Evaluation Period●Share grant

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Quantitative
Data

External
Recognition

Commitment
to External
Initiatives

Principles andPolicies

IBC
Stakeholder
Capitalism
Metrics

Group Governance
Policy and Concept▌ Promoting maximization of corporate value basedon the Group Management Policy
The Sumitomo Corporation Group consists of 886 companies in 78
countries and regions. These companies are the source of the Group’s
strength. Their business domains fall under a wide range of industrial fields,
and many of them are industry leaders.
The group companies respect the Sumitomo Corporation Group’s
Corporate Mission Statement and management strategies, and engage in
Jiritsu* management. Our approach to group management is to contributeto important decision-making at Board and other meetings through active
dialogue based on relationships of trust as a shareholder, and to create
new value through collaboration among group companies including
Sumitomo Corporation. For the purpose of sharing and better implementing
this basic approach and policies within the Group, we established theGroup Management Policy (GMP) in 2021.
The GMP clarifies the roles and responsibilities in group management,setting forth the three principles of Jiritsu, dialogue, and collaboration to berespected by Sumitomo Corporation and its group companies.
The values set forth in the Sumitomo Corporation Group’s Corporate
Mission Statement and the GMP are shared and implemented within theGroup. This allows us to swiftly and appropriately respond to industry
structural transformation and trends surrounding sustainability and to growour group companies into future earnings pillars, thereby further solidifying
the Group’s business portfolio and maximizing corporate value.

* Jiritsu is a Japanese term. In the GMP, we define it to mean “following the rules necessary for the management of a Sumitomo Corporation Group company, such as the Sumitomo Corporation Group’s management
principles, strategies, and policies, to discipline oneself, to think, make decisions, act for oneself in order to achieve goals, and to be accountable to stakeholders.”© 2023 Sumitomo Corporation

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Governance

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Quantitative
Data

External
Recognition

Commitment
to External
Initiatives

Principles andPolicies

IBC
Stakeholder
Capitalism
Metrics

Internal Control
Policy and Concept

SystemTo realize sustainable growth and development, the Sumitomo Corporation Group is working▌ Internal audits

on enhancing group governance and improving the overall quality of groupwide operations

The Internal Auditing Department is an independent organization under the supervision of the Head ofthrough the development, operation, evaluation, and improvement of appropriate internalInternal Control and Internal Audit, which reports directly to the President and Chief Executive Officer,

controls. We have established basic regulations on internal controls to reasonably ensurethat monitors the operations of the Group, and audits organizations and operating companies of thecompliance with laws and regulations related to business activities, safeguarding of assets

Group. As well as reporting the internal audit results directly to the President and Chief Executive

against loss, effectiveness and efficiency of operations, and reliability of financial reporting in

Officer, in principle on a monthly basis, periodic reports are also made to the Board of Directors and thethe Group’s overall businesses. The Internal Control Promotion Department, which takes on

Audit & Supervisory Board. The department regularly conducts audits on all aspects of internal control,

overall control of the Group’s internal control-related operations, has been establishedcomprising asset and risk management, compliance, and business operations. It evaluates thealongside the Internal Auditing Department under the supervision of the Head of Internal

effectiveness and adequacy of the internal controls of auditees, taking into account the significance ofControl and Internal Audit. By actively identifying issues and utilizing internal control activities

the inherent risks. At the same time, it provides appropriate advice for improvements and expedites

within the Group, the department will promote greater effectiveness and consistency of the

improvement and maintenance on the auditee’s own initiative, thereby contributing to the improvement

above efforts throughout the Group.

of governance and internal controls within the Group.

Internal control structure© 2023 Sumitomo Corporation

Internal audit process

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Quantitative
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Recognition

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Initiatives

Principles andPolicies

IBC
Stakeholder
Capitalism
Metrics

Compliance
Policy and Concept

System▌ Basic Compliance Policy▌ Compliance Management System

The basis for the Sumitomo Corporation Group's compliance is to win the trust of society by

Aiming for more agile responses to compliance issues which arise in the Group, Sumitomo

practicing the Activity Guideline that states "to comply with laws and regulations while

Corporation appoints a Chief Compliance Officer (CCO), who has ultimate responsibility for

maintaining the highest ethical standards."

compliance. Further, the Compliance Committee, which plans compliance measures, includes

Accordingly, we follow our principles of "Giving First Priority to Compliance," which means thatthe general managers not only of the Corporate Group but also of the Business Group, enabling

compliance takes priority over all activities of the Group and that we must never violate

it to examine such measures in a multifaceted way that reflects our actual business operations.

compliance as a result of giving priority to the pursuit of profit, and "Reporting Compliance

Our Group will actively continue to establish and improve the internal systems that realize ourIssues Immediately" or "Immediate Report," which means, in the event of a compliance problem,

principle of "Giving First Priority to Compliance."

employees must report the situation without delay to their line manager, including themanagement level personnel, or to the relevant department of the Corporate Group.
Compliance | Sumitomo Corporation▌ Sumitomo Corporation Group Compliance Policy
The Sumitomo Corporation Group Compliance Policy was developed in March 2019 based on
the previous Compliance Guiding Principles to clarify and adopt the basic policy above
throughout the Group. Educational programs, such as seminars and e-learnings, are provided
on a continuing basis with the aim of spreading and ensuring the adoption of the policy
throughout the Group. Sumitomo Corporation also has the Compliance Manual in place and will
review its effectiveness and propriety on a regular basis and revise the content of the Manual asnecessary.

Sumitomo Corporation Group Compliance Policy | Sumitomo Corporation© 2023 Sumitomo Corporation

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Recognition

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Initiatives

Principles andPolicies

IBC
Stakeholder
Capitalism
Metrics

Compliance
System▌ Overview of Speak-Up System and▌ Various Points of Contact▌ Operation of the SC Global Speak-Up System

Our internal rules stipulate and ensure that any issues or potential issues in relation toreport compliance-related issues, has been established and operated. We accept reports in 19 languages under this System.

The group-based Speak-Up system, which enables officers and employees of group companies both in and outside Japan tocompliance must be reported immediately (Immediate Report). Such issues include not
only the violation of antitrust/competition laws or anti-bribery/corruption laws but also
workplace misconduct, falsification of accounts, or harassment. If reporting through theusual reporting line is difficult for some reason, we maintain a "Speak-Up System"
available to officers and employees, who face an issue, to report it to the Chief

Activities▌ Appropriate Responses to Compliance Violations andPreventive Measures

Compliance Officer through an internal or external hotline. Our Speak-Up System

In case of a compliance problem, the Company, primarily through the Legal Department and the Legal Compliance Department

provides various internal and external points of contact, and anonymous reporting is alsowith the aid of external specialists when necessary, and in cooperation with relevant departments in and outside of Japan,

available. Also, it is ensured that the whistle-blower is not subject to disadvantageous

promptly takes steps to establish the facts and clarify the causes of the incident. Based on the outcome, we take corrective

treatment for making the report. In the fiscal year 2022, the Compliance Committee ofmeasures, disciplinary action, and recurrence preventive measures. The Compliance Committee Secretariat annually keeps

Sumitomo Corporation accepted 32 Speak-Up reports. The status of the operation of therecords of the details of the circumstances of compliance violations in the Group. These are analyzed, evaluated and used to

Speak-Up System is periodically reported to the Compliance Committee, the Management

plan future compliance measures. The results and details are deliberated at meetings of the Compliance Committee and thenCouncil, the Audit & Supervisory Board and the Board of Directors.

reported to and discussed by the Management Council, the Audit & Supervisory Board, and the Board of Directors. Thus,

Please refer to our corporate website for more information about theoperation and initiatives for utilization of the Speak-Up System.

status of thethrough this process of repeatedly improving and enhancing such measures while using the Plan-Do-Check-Action cycle, we
strive to increase awareness of and ensure compliance throughout the Group.

▌ Continuous Education Program Initiatives
The Compliance Manual, which explains particularly important issues, such as anti-bribery/corruption, compliance of antitrust law,and security trade control, is communicated to all officers and employees of Sumitomo Corporation.
Both in Japan and overseas, we implement various education programs for each class of employee, such as new comers, newly
appointed general managers, and newly appointed corporate officers, as well as provide e-learning programs about the theme
according to the current situation for all officers and employees (including secondees and overseas workers) of Sumitomo
Corporation every year, in order to promote and deepen understanding of the Sumitomo Corporation Group Compliance Policy
and the Compliance Manual. In addition to these regular activities, we hold seminars and training sessions on an ongoing basis
as required under a specific theme, such as anti-bribery/corruption, compliance of antitrust law and subcontract law, security tradecontrol, prevention of insider trading, elimination of harassment, and information security including protection of personal
information. We also conduct compliance awareness surveys to officers and employees in order to understand, their sensitivity to
Structure of the Speak-Up System© 2023 Sumitomo Corporation

compliance and understanding and penetration of relevant laws, regulations and policies, which is utilized in the planning andimplementation of future compliance measures. Furthermore, we implement a variety of support measures to reinforce
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Governance

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Quantitative
Data

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Recognition

Commitment
to External
Initiatives

Principles andPolicies

IBC
Stakeholder
Capitalism
Metrics

Compliance
Activities▌ Anti-bribery/corruption Initiatives
Based on the principle of "Giving First Priority to Compliance" and as stipulated in the Sumitomo▌ Measures for Ensuring Compliance with Laws
Concerning Antitrust and Fair Competition

Corporation Group Compliance Policy, the Group implements strict measures to prevent all

We stipulate fair competition in the Sumitomo Corporation Group Compliance Policy and ourforms of corruption. Specifically, we have established the Rules for Prevention of Bribery ofpolicy for compliance with laws concerning antitrust in the Compliance Manual. We have also

Public Officials, which regulate the provision of entertainment, gifts, invitations, and donations topublished a separate manual concerning antitrust/competition laws for our officers anddomestic and foreign public officials as well as the selection of agents, and conduct required

employees that describes key considerations in daily dealings. Additionally, we endeavor tointernal review. In addition, taking into account revisions to the laws and regulations of each

ensure, by measures such as regular internal training, that antitrust/competition laws arecountry, and advice from various external specialists, and changes in other social circumstances

observed.

and other factors, we continuously review our internal rules, guidelines, and manuals. Further,▌ Security Trade Control and Logistics Compliance

we extend these rules and manuals to overseas offices and group companies and encouragethem to establish and implement a system appropriate for the bribery risk level of each company,
and we also offer ongoing employee education, such as internal seminars, and work constantly
to prevent bribery and corruption in Japan and overseas.
The Group's principles and policies in this regard are summarized in the Sumitomo Corporation
Group Anti-Corruption Policy (enacted and announced in 2017). This Policy includes thefollowing statement: "The Sumitomo Corporation Group will not commit bribery or conduct any
activity raising the suspicion of bribing Japanese government or other public officials; and will asa principle prohibit its officers and employees from providing such officials with entertainment,
gifts, or the equivalent. It will not make any offer, payment, promise to pay, or authorize thepayment of any money or anything of value to any foreign government or other public official, forthe purpose of influencing any act or decision of such official in order to assist it in obtaining or
retaining business." This statement declares the Group's principles in relation to preventing
bribery. Furthermore, through this Policy, we explain our anti-bribery system and our initiatives
for the prevention of bribery to our business partners, and request their understanding andcooperation.

As an integrated trading company, Sumitomo Corporation regularly implements various
measures, on a continuing basis, to ensure that we comply with treaties and internationalframeworks related to international trade, as well as Japanese laws and regulations related to
trading activities. We implement various measures related to security trade control to prevent
weapons, or products and technologies for civilian use that could be converted to military use,from falling into the hands of states developing weapons of mass destruction, or non-stateorganizations (terrorists). We also provide internal rules, manuals, and guidelines, and provide
training, guidance, and monitoring as needed, while considering trends in economic security
policy from the perspective of maintaining the economic activity of those states, to ensurecompliance with laws and regulations related to tariffs and customs as well as those related to
public order and safety.

▌ Prevention of Insider Trading
To prevent violations of insider trading regulations related to our business activities as well as
personal dealings by our officers and employees, we have established "Rules for Preventionof Insider Trading" as well as internal checking systems from various perspective. To ensure

Sumitomo Corporation Group Anti-Corruption Policy

compliance with insider trading regulations as well as internal rules, we also provide, on aregular basis, internal training courses and other activities to raise awareness.

© 2023 Sumitomo Corporation

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Governance

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Quantitative
Data

External
Recognition

Commitment
to External
Initiatives

Principles andPolicies

IBC
Stakeholder
Capitalism
Metrics

Social and Environmental Risk Management▌ Basic Principles on Social and Environmental Risk Management
The Sumitomo Corporation Group operates businesses dealing in different products andbusiness models in various regions of the world and its business activities have a variety of

Major risks business may pose to society and the environment• Climate change • Biodiversity• Local residents’ human rights

impacts on the global environment and on different stakeholders such as local communities,• Pollution • Resource depletion• Employees’ human rights(Health and safety, Forced labor, Child labor, Discrimination)business partners, and our officers and employees. To achieve sustainable growth together
with society, we work to control the social and environmental impacts of each business of theEnhancing Risk Management

Group, and, by monitoring its entire supply chain, to ensure that the impact of the associatedbusiness activities is not a threat to people’s lives or the global environment and does not

Policies

constrict the sustainability of our management. As the basis for these initiatives, we have

• Sumitomo Corporation Group Environmental Policy• Sumitomo Corporation Group’s Human Rights Policy• S u m i t o m o C o r p o r a t i o n G r o u p C S R Action Guidelines for
Supply Chain Management

established Environmental Policy, Human Rights Policy and CSR Action Guidelines for Supply
Chain Management to clarify our approach to social and environmental issues in the Group’sbusiness operation. Because the impact of each business on society and the environment andthe nature of the risks requiring management focus differ depending on the products dealt with,the business type and the region where it operates, risk management needs to be adapted tothe specific character of the business. Specifically, for each of our businesses, we obtain therelevant data, including information on its interface with society and the environment and theassociated risks. In addition, we ascertain whether serious issues are present by maintaining

Risk management in line with business attributes
and conditions• Recognition of risks faced• Communication with relevant stakeholders• Ascertainment of facts• Response based on legal compliance and alignment withinternational standards

communication channels with local communities, employees, and other stakeholders, andcheck not only that the business is legally compliant across the range of social andenvironmental issues but also that its response in the area complies with international
standards on the environment and human rights. Within the Sumitomo Corporation Group andits diverse range of businesses, the responsible business department of individual businesses

Business units / Initiative
Appropriate risk management

and the related corporate departments are working jointly to raise the standard of social andenvironmental risk management groupwide, utilizing the knowledge of outside experts.

Corporate group

Support in specialized areas© 2023 Sumitomo Corporation

External consultants
Provision of expertise

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IBC
Stakeholder
Capitalism
Metrics

Social and Environmental Risk Management▌ Framework for Social and Environmental Risk Management
The Sumitomo Corporation Group has established a companywide framework to perform appropriate monitoring of the social and environmental impact of the Group’s entire business activities. We
have prepared a self-assessment sheet on relevant social and environmental risks to be used at the time of investment application to identify anticipated risks and opportunities in terms of thenature and regional characteristics of each business. Decision-making is then carried out considering impacts on society and the environment. This includes having the Corporate Sustainability
Department participate in discussions as a specialist organization that addresses social issues depending on the risk. We also engage outside experts to check that the business is soundly
managed and does not have serious impacts on stakeholders by using environmental assessment by an environmental consultant and assessment of human rights and labor issues by a law firm,
considering the specifics of each business. As follow-up to the investment, the responsible business department and related corporate departments work together through dialogue with groupcompanies to carry out regular monitoring from the viewpoint of the environment, human rights, labor management, the supply chain, and other aspects. If an issue arises, remedial action is taken inline with the specifics of the case. Internal audits that take into account special characteristics of the business are used to confirm that management operations are legally compliant and meetinternational standards on social and environmental
issues. When a case relating to the impact of theSumitomo Corporation Group’s business activities isreferred to by a local community, a non-governmentalorganization (NGO), or another stakeholder, we
ascertain the facts and engage in dialogue anddiscussion toward improvement. If, as a result of thisprocess of review and monitoring of investments, an
important social or environmental risk is confirmed, theindividual response is reported or referred for further
discussion to the Management Council and the Boardof Directors through the relevant internal committees.

© 2023 Sumitomo Corporation

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Initiatives

Principles andPolicies

IBC
Stakeholder
Capitalism
Metrics

Information Security
Policy and Concept

SystemThe Company acknowledges the importance of ensuring information security, and

The information managers in each organization categorize information assets based on their importance,

maintains appropriate measures including, but not limited to, the establishment andgive instructions for procedures and methods in order to handle these assets adequately, and work tomaintenance of relevant rules, primarily through IT Strategy Committee, which isensure information security, efficient information-related administrative procedures, and information sharing.

chaired by the Chief Information Officer (CIO). In October 2017, a new Information

For personal information, in addition to establishing a Privacy Policy to protect this as appropriate, we have

Security Policy was established.

put in place relevant rules and organizational structures.

Information Security Policy
1. Initiatives on Information Security
Sumitomo Corporation acknowledges the importance of ensuring information security

We also work on initiatives to minimize risk related to unexpected situations involving information security,
such as external attacks aimed at theft or destruction of corporate information. As well as using systembased safeguards, we conduct ongoing training and drills for employees while establishing and monitoring

and wishes to further enhance the company's trustworthiness in its business operations.

systems at major subsidiaries and other group entities. The Company also coordinates with specialized

Therefore, Sumitomo Corporation shall implement appropriate measures including, but

third-party organizations to stay up-to-date on relevant information and to enable swift and appropriate

not limited to, the establishment and maintenance of relevant rules and guidelines so as

responses.

to responsibly manage information assets on a consolidated basis globally and shallreview them regularly.
2. Compliance
Sumitomo Corporation shall comply with any applicable local, regional, national andinternational laws and regulations in relation to information security.
3. Management of Information Assets
Sumitomo Corporation shall preserve confidentiality, integrity and availability through

IT Strategy Committee

President and Chief
Executive Officer

Information security-related initiatives
 Planning, drafting, and implementation of
measures Researching and responding to
information leaks, etc.

Management
Council(Information Security-related)

responsibly managing all information assets including personal data and shall take all

Chairperson：CIO

reasonable precautions in order to prevent unapproved disclosure, loss or impairment ofVice chairperson：CSO

such data.

Members：
CAO, Assistant CAO (General Affairs & Legal),
Assistant CFO (Accounting), General managers ofInternal Control Promotion Dept,
Information Technologies Planning & Promotion Dept.,
Corporate Planning & Coordination Dept.,
Corporate Communications Dept.,
Global Human Resources Management Dept.,
Corporate Legal & General Affairs Dept.,
Legal Compliance Dept.,
Financial Planning & Coordination Dept.,
Treasury Services Dept., Digital Business Division,
Planning & Coordination Dept., two business Unit

4. Response to Information Security Incidents
Whilst making the utmost endeavor to prevent information security incidents fromoccurring, in the unlikely event such an incident should occur, Sumitomo Corporation
shall respond promptly to the incident and implement whatever preventive measures arenecessary to avoid recurrence.
5. Awareness Education of Information Security
Sumitomo Corporation shall regularly promote and maintain the provision of information
security education including, but not limited to, further heightening the awareness of theimportance of responsibly managing information assets.
© 2023 Sumitomo Corporation

Secretariat：
Information Technologies Planning & Promotion Dept.

Chief Information Officer

Corporate
group

Business units

Domestic
offices

Overseas
offices

Information managers
 Responsible for overseeing information management for organization
 Tasked with swift response measures in the event of an occurrence(or the threat of an occurrence) of unpredicted information security
incidents

Report incidents regarding confidential information leaks, etc., andrespond to those incidents

Privacy policy

143

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Sumitomo Corporation
Group

FeatureEnvironment

SocialGovernance
Governance

ESG
Quantitative
Data

External
Recognition

Commitment
to External
Initiatives

Principles andPolicies

IBC
Stakeholder
Capitalism
Metrics

Stakeholder Engagement▌ Relationships with Stakeholders▌ IR/SR Activities （SR： Shareholder Relations）

The Sumitomo Corporation Group places importance on dialogue with various stakeholders

We are working to build relationships with shareholders, investors, and other stakeholders outside
the Company following our Corporate Disclosure Policy.
The Investor Relations Department has established four guidelines for its activities. These are
Proactive Disclosure, Sincere Dialogue, Timely and Appropriate Sharing, andConstructive Proposals. We actively disseminate information in cooperation with internal related
departments and collect opinions through dialogue. Based on feedback from these opinions, we
make proposals and hold discussions to realize management mindful of capital cost and share price.
Through this cycle of activities, we will deepen external stakeholders’ understanding of the Groupand also contribute to the strategy execution and value creation capabilities of all officers andemployees as internal stakeholders, thereby fulfilling our stated mission of “obtaining the correct
evaluation from the market and contributing to the enhancement of our corporate value.”around us. To build a relationship of trust with each stakeholder, we proactively provide
information on our activities and ensure continuous communication with them. Through these
efforts, the Group keeps informed of stakeholders' expectations and concerns, based on which
we will promote our sustainability and improve our long-term value.
Shareholder/investors

Financial
institutions

Government
agencies/ economic
organizations

Guidelines and activities
Local
communities

Sumitomo
Corporation
Group

NGO・NPOBusiness
partners

Customers/
consumers

Employees

Stakeholders
Stakeholders/investors
Financial institutions

Government
agencies/economic
organizations

Local communities

Management andinternal stakeholders

Investor Relations
Department

Proactive disclosure to and sincere dialogue
with external stakeholders

Timely and appropriate sharing with andconstructive proposals to management andinternal stakeholders

We strive for appropriate disclosures and expanded

We provide evaluations and opinions received from external

explanations of both financial and non-financial information

stakeholders to internal stakeholders including management asbased on our Corporate Disclosure Policy. Additionally, we

feedback, which are used for proposals and discussions that

Integrated report, Communication with government agencies and international

have established opportunities for proactive dialogue withhelp to improvement management.

organizations in Japan and abroad, participation in discussion meetings andshareholders and investors throughout the year to deepenround-table conferences with government offices, activities through business andunderstanding of the Group and solicit the opinions ofMajor means of dialogue
General meeting of shareholders, Investor meeting for annual results, Investor
Day, integrated report, annual securities report, business report for shareholders,website, reporting to credit rating agencies, various small meetings etc.

industrial associations, etc.
Integrated report, Dialogue with local residents in business activities and support
for communities, social contribution activities, etc.

stakeholders.
FY2022 results

chain survey, etc.

Number of individual meetings: Approx. 250(24 of which were ESG/SR related)
Number of times management attended President: 15 CFO:
22

Integrated report, Cooperation and communication with NGOs and NPOs in

Business unit meetings Heldbusiness activities, cooperation in social contribution activities, responses toInvestor Day 2022 HeldBusiness partners
Customers/consumers

Integrated report, website, advertisements, customer information office, supply

NGOs/NPOs

surveys, etc.
Integrated report, Internal magazine, Intranet, training sessions and seminars,
Employees

External stakeholders

labor/management round-table meeting, employee awareness survey, the speakup system, etc.

© 2023 Sumitomo Corporation

Briefings for individual investors 12 times annually
Total participation 6,379

FY2022 results
Management
Council 12 times
annually

Number of regularmeetings with theBoard of Directors’
President andMeetings 6 times
Chief Executive
annually
Officer 4 times
annually

Corporate Communication Committee
Quarterly

IR/SR
Subcommittee
Monthly

IR quarterly report*
Published quarterlyInternal IR
meetings
Held* In-house IR activity report

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Sustainability of
Sumitomo Corporation
Group

FeatureEnvironment

SocialESG
ESG
Quantitative
Quantitative
Data
Data

Governance

External
Recognition

Commitment
to External
Initiatives

Principles andPolicies

IBC
Stakeholder
Capitalism
Metrics

ESG Quantitative Data
Environment (Climate Change)★ External Assurance：For more information on the third-party assurance report, please refer to p.171.

Item
GHG Emissions (Energy-related CO2)

(Components) Scope1<Energy-related CO2>

Boundary

Unit

Consolidated

thousandt-CO2eScope2FY2019
1,475
792
683

FY2020
2,175
1,523
653

FY2021
2,062
1,389
672

FY2022
1,821 ★
1,268 ★
553 ★

* The boundary of “Consolidated” is non-consolidated, consolidated subsidiaries and Joint operations. We have added Joint operations to the boundary from FY2020. For Joint operations, the amountequivalent to the investment ratio as of the end of March of the reporting period is included in the environmental data.
* CO2 emission factors forelectricity: (market based
method)（Non-consolidated in Japan) The adjusted emission factors of individual power companies. Before FY2020 results, the basic emission factors were used.
（Consolidated subsidiaries in Japan) The average emission factors of all power companies.
(Overseas) Emission factors from electricity generation are based on the country-specific data in 2020 listed on "Emissions Factors 2022", an IEA (International Energy Agency)

statistics. Before FY2020 results, Emission factors from electricity generation are based on the country-specific data in 2013 listed on "CO2 EMISSIONS FROM FUELCOMBUSTION 2016 EDITION".

* CO2 emission factors other than those from electricity generation are based on a manual for GHG emissions accounting, reporting, and disclosure systems published by Japan’s Ministry of theEnvironment and Ministry of Economy, Trade and Industry.
* The breakdown of 1,821 thousand t-CO2e in FY2022 by business activity is 757 thousand t-CO2e for business other than power generation and 1,065 thousand t-CO2e for power generation.
* The main reason for the increase of GHG emissions in FY2020 compared to FY2019 is the addition of Joint operations to the boundary of data.
We couldn't collect the environmental data for 38 sites due to COVID-19 lockdown or working from home in FY2019. In FY2018, GHG emissions of these sites were equivalent to about 5.2% of thetotal GHG emissions.

（Reference）
Sumitomo Corporation Group’s
CO2 Emissions targeted for
Carbon Neutrality

Item（Components by Activity）

Unit
Business other than power
generation
Power generation business
Fossil energy concession

thousandt-CO2eFY201959,9391,005

FY202055,367974

FY202155,497967

FY2022
52,572757

43,126

40,582

41,36842,61315,80813,811

13,1629,203* CO2 emissions by activity are calculated as the target of the Sumitomo Corporation Group's carbon neutrality. This total includes the above [GHG Emissions (Energy-related CO2)].
For details, please refer to the special feature [Climate Change Initiatives] in this book .

© 2023 Sumitomo Corporation

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Sustainability of
Sumitomo Corporation
Group

FeatureEnvironment

SocialESG Quantitative Data

Governance

ESG
ESG
Quantitative
Quantitative
Data
Data

External
Recognition

Commitment
to External
Initiatives

Principles andPolicies

IBC
Stakeholder
Capitalism
Metrics★ External Assurance: For more information on the third-party assurance report, please refer to p.171.

Environment (Climate Change)
Item
GHG Emissions (Scope1 <Non energyrelated CO2 and GHGs other than CO2>)（Components）Non energy-related CO2
Methane（CH4）
Dinitrogen monoxide（N2O）
Hydrofluorocarbons（HFCs）
Perfluorocarbons（PFCs）
Sulfur hexafluoride（SF6）
Nitrogen trifluoride（NF3）

Boundary

Unit

Consolidated

thousandt-CO2eFY2019

0
0
0
0
0
0
0
0

FY2020

4
0
0
4
0
0
0
0

FY2021

232
0
129
103
0
0
0
0

FY2022
260
0
153
107
0
0
0
0

★

* Group companies emitting more than 3,000 t-CO2e for each gas per year are subject to the aggregation of Scope1<Non energy-related CO2 and greenhouse gases other than CO2>, under the Greenhouse Gas
Emissions Accounting, Reporting, and Disclosure System in Japan.
In FY2019, we aggregated non-consolidated and consolidated subsidiaries in Japan and the boundary of Scope1<other GHGs> was expanded to consolidated (excluding Joint operations) in FY2020.
From FY2021 onward covers consolidated (including Joint operations). For Joint operations, the amount equivalent to the investment ratio as of end of March of the reporting period is included in environmental data.

Item
GHG Emissions （Scope3）（Components）

Boundary
Category4 : Upstream
Transportation and Distribution
Category5 : Waste
Category6 : Overseas Business
Trips
Category7 : Commuting
Category13 : Downstream
Leased Assets

Nonconsolidated(in Japan)

Unit

thousandt-CO2eFY201962.19

FY202034.38

FY202133.19

FY2022
46.43

★

5.50

3.88

4.09

4.00

★

0.01

0.01

0.01

0.01

★

22.40

0.07

0.57

10.28

★

0.61

0.14

0.37

0.51

★

33.66

30.29

28.15

31.63

★

* The boundary of non-consolidated (in Japan) includes the head office, domestic branches and sub-branches.
* GHG emissions from Upstream transportation and distribution include the transport of cargo within Japan for which Sumitomo Corporation is the cargo owner and are calculated based on a manual for GHG emissions
accounting, reporting, and disclosure systems published by Japan’s Ministry of the Environment and Ministry of Economy, Trade and Industry.
Sumitomo Corporation complies with the Act and reduces the use of energy of transportation through promotion of modal shift (utilization of railroads and vessels), optimization of delivery routes and loading on vehicles,
promotion of eco-driving, etc. We have set a target of reducing the use of energy from Upstream transportation and distribution per shipping weight by at least 1% annually in Japan.
* GHG emissions from waste are calculated from all general waste of Sumitomo Corporation.
The results were calculated using the emission intensity for each type of waste, which is published in the emission intensity database for calculating greenhouse gas emissions and other emissions by organizations
throughout the supply chain. The calculation of GHG emissions for FY2022 uses the emission intensity database Ver.3.3.
* GHG emissions due to overseas business trips are the emissions from flights departing from and arriving in Japan that Sumitomo Corporation employees took. Business trip destinations are classified into 12 areas andpassenger-kilometers are estimated based on the travel distance between Japan and representative airport of each area. GHG emissions due to overseas business trips are calculated by applying CO2 emission factors
published by the UK‘s Defra to the passenger-kilometers.
* GHG emissions from commuting are those from the commuting of Sumitomo Corporation‘s employees working in Japan, calculated by using the emissions factors per passenger-kilometer for passenger transport bytransport mode published in the Ministry of Land, Infrastructure, Transport and Tourism publication “CO2 Emissions in the Transport Sector” up to FY2020. After FY2021 results were calculated using emission intensity per
number of employees and working days by work type and city classification, which is published in the emission intensity database for calculating greenhouse gas emissions and other emissions by organizations
throughout the supply chain. FY2022 results were based on this database (Ver. 3.3).
* GHG emissions from downstream leased assets are calculated based on the Act on the Rational Use of Energy in Japan.(Current: the Act on Rationalizing Energy use and Shifting to Non-fossil Energy in Japan) for
buildings owned by Sumitomo Corporation and leased to other companies. The basic emission factor is used for the CO2 emission factor for electricity.
* The total GHG emissions (total amount of the above Scope1, 2 and Scope3) were 2,214 thousand t-CO2e／2,327 thousand t-CO2e／2,128 thousand t-CO2e in FY2020, FY2021, and F2022 respectively.
© 2023 Sumitomo Corporation

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Sumitomo CorporationGroup

ESG Quantitative Data

Environment (Climate Change)

FeatureEnvironment

SocialGovernance

ESG
ESG
Quantitative
Quantitative
Data
Data

External
Recognition

Commitment
to External
Initiatives

IBC
Stakeholder
Capitalism
Metrics

Principles andPolicies★ External Assurance：For more information on the third-party assurance report, please refer to p.171.
Item

Boundary

Energy Consumption

Consolidated

Electricity Consumption

Unit

thousandGJ
MWh

FY2019FY2020

FY2021

FY2022

17,062

29,574

28,68025,027 ★

1,534,809

1,525,641

1,645,278

1,336,280 ★

* The boundary of “Consolidated” is non-consolidated, consolidated subsidiaries and Joint operations. We have added Joint operations to the boundary from FY2020. For Joint operations, the amount equivalent to the investment ratio as of the end of
March of the reporting period is included in the environmental data.
* Energy consumption does not include energy derived from biomass fuels.
* Energy conversion factor from electricity consumption: 3.6 (MJ/kWh).
* Energy conversion factors from other than electricity consumption are based on the Act on the Rational Use of Energy in Japan.(Current: the Act on Rationalizing Energy use and Shifting to Non-fossil Energy in Japan) .
* The main reason for the increase of energy consumption in FY2020 compared to FY2019 is the addition of Joint operations to the boundary of data.
* Electricity consumption includes the electricity purchased from power generation companies within the boundary of environmental data.
* The amount of electricity consumption which was derived from renewable energy was 5,264MWh in FY2022.
* We couldn't collect the environmental data for 38 sites due to COVID-19 lockdown or working from home in FY2019.
In FY2018, energy consumption of these sites were equivalent to about 7.3% of the total energy consumption and electricity consumption of these sites were equivalent to about 7.1% of the total electricity consumption.

Environment (Water Resources)
Item
Water Withdrawal（Components of Water Sources）

Boundary
Third-party sources,
Industrial water
GroundwaterRivers, lakes
Sea
Rainwater

Consolidated

Water Discharge（Components of Water Sources）（Components of Discharge Destination）

Third-party sources,
Industrial water
GroundwaterRivers, lakes
Sea
Rainwater
Number of sites
Third-party sources
GroundwaterRivers, lakes
Sea

thousandm3

thousand m3/million yen

Water Withdrawal per consolidated revenue
Water Withdrawal inwater-stressed areas

Unit

Consolidated

thousandm3

Site
Consolidated

thousandm3

FY201920,144FY202093,120

FY2021

78,107

FY2022

66,452

4,206

4,807

6,809

7,357

13,0082,930
0
056,08531,701
2
526

34,34235,9983955

19,45437,680
4
1,957

0.015

0.020

0.014

0.010

366

2,041

2,897

4,351

303

793

895

1,007

63
0
0
0
74
15,097
11,173
50
2,974
900

721
0
2
526
60
52,72348,016
200
3,512
995

956
87
3
955
53
7,205
2,540
230
3,461
974

199
1,185
4
1,957
84
7,185
2,444
40
3,681
1,020

* The boundary of “Consolidated” is non-consolidated, consolidated subsidiaries and Joint operations. We have added Joint operations to the boundary from FY2020. For Joint operations, the amount equivalent to the investment ratio as of the end of
March of the reporting period is included in the environmental data.
* Of the 66,452 thousand m3 of water withdrawal in FY2022, we have obtained third-party assurance for 11,759 thousand m3★ of water withdrawal excluding the withdrawal for 30 companies in Europe and Americas fresh produce business and thewithdrawal from rivers, lakes and rainwater in Australian mining business, for which partial estimates have been adopted.
* We couldn't collect the amount of water withdrawal for 38 sites due to COVID-19 lockdown or working from home in FY2019. In FY2018, Water consumption of these sites were equivalent to about 50.5% of the total water withdrawal.
* The main reason for the increase of water withdrawal in FY2020 compared to FY2019 is the reactionary increase due to the lack of the environmental data for some sites by COVID-19 lockdown or working from home in FY2019, and the addition of Joint
operations to the boundary of data from FY2020.
* Water Withdrawal in water-stressed areas is aggregated locations with a water risk level of 3 (High) or higher as water-stressed areas on the World Resources Institute (WRI)'s "WRI Aqueduct".
* In case where it is difficult to grasp the amount of discharged water, we estimate the amount of discharged water by assuming that the amount of water Withdrawal = the amount of discharged water.
As a result of our efforts to determine and refine the data, the amount of discharged water in FY2021 decreased significantly.
Our Group consumes a high percentage of water for fruit cultivation (including evaporation) and recycling without discharging water after use, which results in a smaller amount of discharged water compared to the amount of water withdrawal.
* [Water Withdrawal -Components of Water Source-], [Water Withdrawal in Water-stressed areas], and [Water Discharge] are not subject to assurance engagement.
© 2023 Sumitomo Corporation

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Sumitomo Corporation
Group

FeatureEnvironment

SocialESG
ESG
Quantitative
Quantitative
Data
Data

Governance

External
Recognition

Commitment
to External
Initiatives

Principles andPolicies

IBC
Stakeholder
Capitalism
Metrics

ESG Quantitative Data
Environment（Resources and Waste）
Item

Boundary

Waste Emissions

Unit

FY2020Industrial waste of plastic - containing products - Waste Volume
Industrial waste of plastic - containing products - Recycled Volume
Industrial waste of plastic - containing products – Thermal Recovery Volume

Non-consolidated(in Japan)

36,48036,41333,200

111

41

44

47

6

2

2

2

％

95.0

96.1

95.6

95.8

-

-

151

213

-

-

21

36

t

Hazardous Waste Emissions
Air Pollutant Emissions

thousandsheetsPaper Consumption

FY202233,305General waste from Business Operations – Final Disposal Volume
General waste from Business Operations – Recycling Ratio

FY2021tConsolidated

General waste from Business Operations – Recycled Volume

FY2019

-

-

93

139

7.01

6.29

1.36

0.72

0

0

0

0

14,516

4,559

5,254

5,887

* The boundary of “Consolidated” is non-consolidated, consolidated subsidiaries and Joint operations. We have added Joint operations to the boundary from FY2020. For Joint operations, the amountequivalent to the investment ratio as of the end of March of the reporting period is included in the environmental data.
The boundary of "Non-consolidated (in Japan)" includes the head office, domestic branches and sub-branches.
* Waste emissions are for general waste from business operations; industrial waste and valuable resources are not included.
* We couldn't collect the data on waste emissions for 38 sites due to COVID-19 lockdown or working from home in FY2019. In FY2018, waste emissions of these sites were equivalent to about 0.6%of the total waste emissions.

Environment（Others）
Item

Boundary

Percentage of sites covered by ISO14001

Non-consolidated(in Japan)
Consolidated

Violations of environmental laws and regulations(penalties of one million yen or more, etc.)© 2023 Sumitomo Corporation

Number of caseAmount of penalties

Non-consolidated(in Japan)

Unit

FY2019FY2020

FY2021

FY2022

100

100

100

100

19

19

21

21

case

0

0

0

0

million yen

0

0

0

0

％

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Group

FeatureEnvironment

SocialGovernance

ESG
ESG
Quantitative
Quantitative
Data
Data

External
Recognition

Commitment
to External
Initiatives

FY201972,642
27,604
3,937
1,270
5,207
118
91
209
43.5
7.5
27
8
35
2.24
2,657
203
2,860
7.1
ー

FY202074,92028,523
3,937
1,303
5,240
102
52
154
33.3
7.0
24
3
27
2.11
2,647
216
2,863
7.5
0.8

Principles andPolicies

IBC
Stakeholder
Capitalism
Metrics

ESG Quantitative Data
Society (Personnel Data)
Number of employees
Number of temporary employees

Item

Number of employees [Male/Female]

Number of new employees*1

MaleFemaleTotal
Male
FemaleTotal

Boundary

Unit

Consolidated

personNon-consolidated

personNon-consolidated

personFY201865,66225,700
3,910
1,216
5,126
104
58
162
35.8
7.2
30
6
36
2.24
2,669
184
2,853
6.5
ー

FY2021
74,25328,169
3,852
1,298
5,150
75
31
106
28.6
6.5
14
6
20
2.09
2,540
204
2,744
7.4
0.8

Non-consolidated
Ratio of female new employees%
Ratio of non-fulltime employees, such as contract and temporary employees Non-consolidated％
Male
Number of mid-career employees
Non-consolidated
FemalepersonTotal
Non-consolidated
Employment rate of disabled persons*2%
Male
Number of managers*3
Non-consolidated
FemalepersonTotal
Non-consolidated
Female Manager ratio *3%
Non-consolidated
Female Department General Manager ratio *3
Ratio of employees who are covered by a collective
Non-consolidated
59.1
59
59.2
60.4
%
bargaining agreement
18yr 10mos
18yr 8mos
18yr 10mos
19yr 2mos
Male
Average length of service (years)
Non-consolidated year/month
15yr 10mos
16yr 4mos
Female16yr
15yr 7mos
Overall mean
18yr 2mos
17yr 11mos
18yr 1mo
18yr 6mos
Regular
Gender Wage Gap between Male and Female*4
ー
ー
ー
ー
%
employees
Non-regularNon-consolidated
ー
ー
ー
ー
%
employees
All employees
ー
ー
ー
ー
%
*1 Figures for previous fiscal years have been restated following changes in the calculation method of the number of persons including medical professional instituted in FY2022.

FY2022
78,23530,222
3,761
1,307
5,068
72
29
101
28.7
7.3
47
28
75
2.25
2,523
232
2,755
8.4
1.4
62.3
19yr 1mon
16yr 6mos
18yr 5mos
58.7
48.9
59.6

*2 Figures are as of June 1 of each fiscal year.
*3 As of April 2023.
*4 Items subject to calculation of gender wage gap: Monthly salary (base pay, secondment allowance, separate living allowance, teleworking allowance, overtime work allowance, late-night premium
allowance for managers, bonus) Reason for gap: While the ratio of female managers affects the wage gap for both regular and non-regular employees, there is no significant wage gap among
employees with equivalent jobs (department general manager equivalent: 102.6%, section manager level: 100.3%, non-manager level: 85.4%). The wage gap is expected to decrease over the
medium to long term as we aim to achieve its target female manager ratio (at least 20% female managers by FY2030).
© 2023 Sumitomo Corporation

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Sumitomo Corporation
Group

FeatureEnvironment

SocialGovernance

ESG
ESG
Quantitative
Quantitative
Data
Data

External
Recognition

FY2018FY2019Commitment
to External
Initiatives

Principles andPolicies

IBC
Stakeholder
Capitalism
Metrics

ESG Quantitative Data
Society (Work Styles)
Item

Boundary

Unit

FY2020

FY2021

FY2022

%

1.8
2.3
1.9

1.8
2.4
2.1

1.9
1.7
1.9

3.4
3.0
3.3

3.1
2.8
3.0

Non-consolidated

%

1.9

1.9

1.9

3.0

2.6

Average monthly overtime hours

Non-consolidated

hours/minutes

9h 53mins

7h 47mins

12h 49mins

12h 20mins

10h 55mins

Average annual days of paid vacation acquired*1
Spouse maternity leave
Leave to look after a sick child
Number of employees who took family care leave
Number of employees who took maternity leaveNon-consolidated
Non-consolidated
Non-consolidated
Non-consolidated
Non-consolidated

day
case
case
personpersonNon-consolidated

personNon-consolidated

person

16.9
90
237
0
71
181
71
252
10
71
81

17.1
92
225
1
73
179
57
236
9
56
65

12.3
83
173
0
87
189
73
262
34
73
107

12.8
70
169
0
70
156
60
216
41
62
103

13.7
86
194
1
65
168
51
219
61
51
112

Non-consolidated

%

ー

ー

ー

ー

67.0

Non-consolidated

personNon-consolidated

%

10
54
64
100
100
100

9
64
73
100
95.6
96.1

32
29
61
100
96.7
98.4

36
8
44
100
100
100

58
64
122
100
95
98

Number of individuals using shortened work hour system

Non-consolidated

person

136

165

173

200

195

Number of cases of violations of the Labor standards Act

Non-consolidated

case

3

3

5

5

3

Turnover rate of full-time employees

MaleFemaleTotal

Non-consolidated

Voluntary turnover rate

Total

Number of employees eligible for childcare leave

Number of employees who took childcare leave

Male
FemaleTotal
Male
FemaleTotal

Ratio of eligible male employees taking childcare Leave*1
Number of employees who returned to work after taking
childcare leave
Ratio of employees who returned to work after taking
childcare leave *2

MaleFemaleTotal
Male
FemaleTotal*1 “The ratio of eligible male employees taking childcare leave” is calculated based on the ratio of employees taking childcare leave or leave intended for childcare under Article 71-4, Item 2 of theOrdinance for Enforcement of the Act on Childcare Leave, Caregiver Leave, and Other Measures for the Welfare of Workers Caring for Children or Other Family Members (Ministry of Labour OrdinanceNo. 25, 1991) in accordance with the provisions of the Act on Childcare Leave, Caregiver Leave, and Other Measures for the Welfare of Workers Caring for Children or Other Family Members (Act No.
76, 1991).
*2 Partial change to scope of calculations from FY2022.
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Sustainability of
Sumitomo Corporation
Group

FeatureEnvironment

SocialESG
ESG
Quantitative
Quantitative
Data
Data

GovernanceCommitment
to External
Initiatives

External
Recognition

IBC
Stakeholder
Capitalism
Metrics

Principles andPolicies

ESG Quantitative Data
Society (Occupational Safety and Health)
Item
Number of occupational accidents
Number of deaths by occupational accidents
Number who suffered Lost Time Incidents (LTI)
LTIFR (Lost Time Injury Frequency Rate)

Boundary

Unit

Nonconsolidated

case

Nonconsolidated

case

Boundary

Unit

FY2018FY2019FY2020

FY2021

FY2022

1

3

2

2

2

0

0

0

1

0

1

3

1

1

0

0.10

0.29

0.11

0.11

0

FY2018FY2019FY2020

FY2021

FY2022Society (Human Resources Development)
Item
Total number of lectures
Number of employees participatingin training
Total hours of training received

Ability development training*

Nonconsolidated

Number of employees undergoing training overseas
Annual education and training cost per employee

340

286

255

919

1,705

person14,646

14,963

12,21144,87692,44675,08965,65250,806

119,894

177,320

14.7

12.7

9.7

23.4

32.3

person

1,153

1,144

1,098

976

921

person

96

67

34

76

61

555,403

501,830

325,604

327,587

380,624hour

Average hours per employee
Number of employees dispatched overseas

sessionNonconsolidated
Nonconsolidated
Nonconsolidatedyen*Training hosted by the head office targeted at head office employees and locally recruited employees of overseas bases and business companies. Figures from FY2021 include training
conducted by business units in addition to the training organized by HR.

Society (Social Contribution)
Item
Social contribution activities
Political donations© 2023 Sumitomo Corporation

Expenditure for social contribution
activities
Number of employees who usedthe volunteer leave program

Boundary

Unit

Consolidated

million yen

Nonconsolidated
Nonconsolidated

FY2018FY2019FY2020

FY2021

FY2022

1,528

1,980

1,654

1,655

1,910

person

7

12

1

10

1

million yen

24

28

28

28

28

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FeatureEnvironment

SocialGovernance

ESG
ESG
Quantitative
Quantitative
Data
Data

External
Recognition

Commitment
to External
Initiatives

Principles andPolicies

IBC
Stakeholder
Capitalism
Metrics

ESG Quantitative Data
Governance (Board of Directors, Audit & Supervisory Board, Nomination and Remuneration Advisory Committee)
Board of Directors*

Item

Internal
directors
Independent
outsidedirectors

Ratio of female Directors*
Number of Board of Directors meetings
Audit & Supervisory Board*

Total
Internal
directors
Independent
outsidedirectors

Number of outside Audit & Supervisory Board Memberswith expertise in finance and accounting*Number of Audit & Supervisory Board Meetings
Ratio of female Directors and Audit & Supervisory Board*
Nomination and Remuneration Advisory Committee*

Total

Internal
directors
Independent
outsidedirectors

Total
Ratio of outside directors in the Nomination and Remuneration Advisory
Committee*
Number of Nomination and Remuneration Advisory Committee meetings

Boundary

Unit

FY2018FY2019FY2020

FY2021

FY2022

Male

6

6

6

6

6

Female
Total

0
6

0
6

0
6

0
6

0
6

3

3

3

3

3

2
5
11
18
20

1
4
10
10
16

2
5
11
18
21

2
5
11
18
22

2
5
11
18
18

Male

2

2

2

2

2

Female
Total

0
2

0
2

0
2

0
2

0
2

3

3

3

2

2

0
3
5

0
3
5

0
3
5

1
3
5

1
3
5

1

1

1

1

1

17
13.3

15
6.7

17
13.3

17
18.8

17
18.8

Male

2

2

2

2

2

Female
Total

0
2

0
2

0
2

0
2

0
2

2

2

2

2

2

1
3
5

1
3
5

1
3
5

1
3
5

1
3
5

%

60

60

60

60

60

time

7

5

11

7

7

Male

Non-consolidated

personFemale
Total
%
time

Male

Non-consolidated

personFemaleTotal

Non-consolidated

personMale
Female
Total

time
％

Non-consolidated* Figures at the end of June of each fiscal year
© 2023 Sumitomo Corporation

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FeatureEnvironment

SocialESG
ESG
Quantitative
Quantitative
Data
Data

GovernanceCommitment
to External
Initiatives

External
Recognition

IBC
Stakeholder
Capitalism
Metrics

Principles andPolicies

ESG Quantitative Data
Governance (Remuneration)
Boundary

Item

Remuneration of Directors

Directors(Excluding outside directors)

Unit

FY2018

Audit fees (KPMG AZSA LLC)

Outside Audit & Supervisory
Board Members
Fees for auditing services

480

474

470

380

427

194

－

513

537

Stock options

14

－

－

-

-

Restricted stock-based
compensation

73

92

86

21

-

66

70

36

65

91

ー

ー

ー

121

296

959

831

592

1,099

1,351

Nonconsolidated

million yen

Monthly remuneration

67

65

87

95

104

Total

67

65

87

95

104

87

87

87

87

87

38

38

50

54

59

Monthly remuneration
Monthly remuneration

Nonconsolidated

million yen

Non-consolidated

492

520

508

504

521

540

537

529

489

495

1,032

1,057

1,037

993

1,016

Consolidated

13
57

16
83

11
62

26

20

Total

55

105

70

99

73

81

125

Consolidated
Total
Fees for non-auditing services

FY2022327

Total

Inside Audit & Supervisory Board
Members

FY2021Monthly remuneration

Restricted performance shareunit-based remuneration

Remuneration of Audit &Supervisory Board Members

FY2020Bonus for Directors

Performance share unit-based
stock compensation

Outside directors

FY2019ー

Non-consolidated

millionyen

Governance (Compliance)
Item

Boundary

Compliance-related seminars and other training programs Number of times
Number ofparticipants
Of the above, seminars and other training programs
related to anti-bribery and anti-corruption

Number of times
Number ofparticipants

Head Office ordomestic/overseas
corporations*2

CY2019*1

CY2020*1

FY2021

FY2022≥270times≥150times≥140times≥160times

Total of ≥19,160person

Total of ≥19,890person

Total of ≥20,990person

Total of ≥29,580person≥80times≥70timse≥50times≥70times

Total of ≥Total of ≥10,240person

Total of ≥ 3,100person

Total of ≥10,800person

5,450person*1 Figures from January to December of each year
*2 Including training programs conducted by Sumitomo Corporation or its regional offices for business-line subsidiaries in Japan or overseas.
© 2023 Sumitomo Corporation

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FeatureEnvironment

SocialGovernance

ESG
Quantitative
Data

Commitment
to External
Initiatives

External
External
Recognition
Recognition

Principles andPolicies

IBC
Stakeholder
Capitalism
Metrics

External Recognition
Assessment organizations
FTSE4Good Index Series / FTSE Blossom Japan Index / FTSE Blossom

S&P/JPX Carbon Efficient Index

Japan Sector Relative Index

We were selected in S&P/JPX Carbon Efficient Index, a global environmental stock index

We were selected as a constituent of FTSE4Good Index Series, FTSE Blossom Japan Index
and FTSE Blossom Japan Sector Relative Index . Published by FTSE Russell, an investment

created by S&P Dow Jones Indices in the United States (As of March 2023).It is adopted by
the GPIF as an effective index for ESG investment.

index calculator, FTSE4Good Index Series consists of companies with strong Environment,
Social and Governance (ESG) practices. FTSE Blossom Japan Index and FTSE Blossom
Japan Sector

Relative Index which are also provided by FTSE Russell, measure theperformance of Japanese companies in terms of ESG practices. They have also been adopted
by the Government Pension Investment Fund (GPIF) as an effective index for ESG investment.

SOMPO Sustainability Index
We were selected in the SOMPO Sustainability Index managed by
SOMPO

Asset

Management”)

Management

Co.,

Ltd.

(“SOMPOAsset(As of June 2023) The SOMPO Sustainable

Management, launched by SOMPO Asset Management in August
2012, is a socially responsible investment funds for pension trusts
and institutional investors that invest broadly in companies having astrong positive evaluation for ESG performance.

MSCI: MSCI Japan Empowering Women Index (WIN)

CDP

Sumitomo Corporation is listed as a constituent of the MSCI Japan Empowering Women Index

In 2022, we were evaluated A-(leadership level) in the Climate(WIN), one of the environmental, social and governance (ESG) indices selected by the GPIF.

Change program, A-(leadership level) in the Water Security

This is an ESG index consisting of companies with high gender diversity selected by MSCI USA.

program, and A- (leadership level) in the Forests program by the
CDP.

Zero-Emissions Challenge* The inclusion of Sumitomo Corporation in any MSCI index, and the use of MSCI logos, trademarks,
service marks or index names herein, do not constitute a sponsorship, endorsement or promotion of
Sumitomo Corporation by MSCI or any of its affiliates. The MSCI indexes are the exclusive property of
MSCI. MSCI and the MSCI index names and logos are trademarks or service marks of MSCI or its affiliates.

© 2023 Sumitomo Corporation

In October 2020, We were included in a “List of Companies
Taking on the Zero-Emission Challenge” published by METI
as a company that is paving the way to realization of adecarbonized society by taking advantage of innovations.

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FeatureEnvironment

SocialGovernance

ESG
Quantitative
Data

External
External
Recognition
Recognition

Commitment
to External
Initiatives

Principles andPolicies

IBC
Stakeholder
Capitalism
Metrics

External Recognition
OthersTelework Pioneer 100"Eruboshi" Certification
In May 2016, we were certified as a second-highest class "Eruboshi"

We were selected for inclusion in the Top Hundred Telework Pioneerscompany in recognition of the effort to promote the active involvementfor FY2019 by the Ministry of Internal Affairs and Communicationsof female employees on the basis of the Act on Promotion of(MIC). Through Top Hundred Telework Pioneers, MIC recognizes

Women's Participation and Advancement in the Workplace.

companies and organizations with sufficient achievements that are
advancing the introduction and utilization of telecommuting.

"Platinum Kurumin" as a Company that Provides
Superior Childcare Support

Kagayaku Telework Award

We were granted "Platinum Kurumin" certification in June 2015 by the

Sumitomo Corporation won the Excellence Award of the FY2020 Telework Promotion

Ministry of Health, Labor and Welfare (MHLW) in recognition ofCompany Award (Kagayaku Telework Award) presented by the MHLW. This award isproviding superior childcare support among the "Kurumin" certified

presented to companies and organizations that achieved outstanding results in maintaining

companies.

a good work-life balance for employees through the use of telework. The Excellence Awardin particular recognizes companies and organizations with exceptional measures.

Reforming and Diversifying Work Practices

DX-Certified Business Operator

We have been certified by METI as a “White 500” enterprise withoutstanding

healthandproductivity

management

for

seven

consecutive years from 2017 to 2023.

Sumitomo Corporation was selected as a DX-Certified
Business Operator under METI’s DX Certification System.
This system recognizes DX-Certified Business Operators ascompanies ready to pursue DX in accordance with the Act on
Facilitation of Information Processing.

Certified as a “Silver” in “PRIDE INDEX”
In 2022, we were certified as a “Silver” in “PRIDE INDEX” inrecognition of the effort to support sexual minorities including
LGBTQ+ by a private organization “work with Pride”.

Won the 19th Corporate Philanthropy Special Award
Our global social contribution activity program “100SEED” won the "Tanemaki (Seeding)Century Award" at the 19th Corporate Philanthropy Award, which is intended to commend
activities that help resolve social issues and contribute to the sound development of oursociety.(Awarded in 2022)© 2023 Sumitomo Corporation

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Group

FeatureEnvironment

SocialGovernance

ESG
Quantitative
Data

External
Recognition

Commitment
Commitment
to External
to External
Initiatives
Initiatives

Principles andPolicies

IBC
Stakeholder
Capitalism
Metrics

Commitment to External Initiatives▌ UN Global Compact▌ Keidanren / Japan Foreign Trade Council

The Global Compact (GC) was proposed by the former UN Secretary General Kofi Annan in 1999 andAs a member of the Subcommittee on Global Environment of the Committee on Environment and Safety ofofficially launched in 2000 at the UN Headquarters in New York.

Keidanren (Japan Business Federation), our company addresses global warming and climate change andIn March 2009, Sumitomo Corporation Group signed the UN Global Compact and declared its support

helps design environmental policies that will not harm the economy. We also participate in Sustainability

for the 10 principles, shares the same values as our Corporate Mission Statement. We are raising thePromotion Committee and Global Environment Committee of Japan Foreign Trade Council, Inc. to discussawareness of our officers and employees around the world regarding their purpose and making efforts

how to realize a low-carbon society and a recycling society, and how to comply with environment-related

to further increasing our corporate value by constantly seeking out areas of our business activities

laws and regulations. In addition, we participate in the Social Contribution & ABIC Committee to cooperatethat can be improved in light of the values advocated by the 10 principles.

in the expansion of ABIC activities and exchange information concerning social contribution activities in our

We are also actively participating in the activities of Japan’s local network, Global Compact Network

industry. When assessing whether to join membership with an industry group, we confirm whether theJapan, as one of the member companies. In FY2022, we took part in working groups on: environmentalgroup‘s climate change initiatives are consistent with our policy on climate change. Also, we implement

management related to climate change, biodiversity and other environmental issues; human rights due

appropriate climate change countermeasures regardless of the level of influence of the affiliated industry

diligence; reporting; supply chain; SDGs; ESG; CSV and circular economy. Through this involvement,group.

we acquire information on recent global trends in these areas, learn of examples of superior initiatives,and are provided insight from specialists. This knowledge is utilized to help the Company promote
Sustainability.

Commitment to International Codes of Conduct | Sumitomo Corporation▌ Task Force on Climate-related Financial Disclosures (TCFD)
Sumitomo Corporation recognizes the importance of climate-related financial disclosures and supports
the recommendations of the TCFD*1, and further expand its information disclosure in accordance withthe recommendations.

▌ Stakeholder Capitalism Metrics
In January 2021, Sumitomo Corporation supported and signed the Stakeholder Capitalism Metrics, astandard for non-financial information disclosure released by the International Business Committee(IBC) of the World Economic Forum (WEF). While utilizing this metrics, we will further expand thedisclosure of non-financial information to our stakeholders.

*1 The Task Force on Climate-related Financial Disclosures was established by the Financial Stability

Disclosure based on IBC Stakeholder Capitalism Metrics

Board (FSB). The final report to recommend further expansion of information disclosure was releasedin June, 2017.

Disclosure based on TCFD Recommendations▌ Task Force on Nature-related Financial Disclosures（TNFD）
Our business depends largely on natural capital, and biodiversity conservation is an important issue forthe company. In June 2022, Sumitomo Corporation joined the TNFD Forum, a network of institutional
supporters who share the vision and mission of TNFD*2. We will make further efforts to conserve
biodiversity going forward.
*2 Taskforce on Nature-related Financial Disclosures. A global initiative aimed to develop and deliver a▌ Japan CCS Co., Ltd. / Global CCS Institute / Asia CCUS Network
We are a shareholder of Japan CCS Co., Ltd. (JCCS). The company is conducting demonstration tests
on the use of CCS technology, which involves capturing and storing CO2 in the ground, as well as
chemical synthesis of CO2.
We joined the Global CCS Institute (GCCSI) to meet conditions desirable to apply CCS. Since 2021,
the company has been participating in the Asia CCUS Network to share knowledge with and educate
Asian countries with regard to CCUS.

risk management and disclosure framework for organizations to report and act on evolving naturerelated risks.
© 2023 Sumitomo Corporation

Trial Analysis based on TNFD Beta Framework

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FeatureEnvironment

SocialGovernance

ESG
Quantitative
Data

External
Recognition

Commitment
Commitment
to External
to External
Initiatives
Initiatives

Principles andPolicies

IBC
Stakeholder
Capitalism
Metrics

Commitment to External Initiatives▌ GX League▌ Keidanren Nature Conservation Fund (KNCF)

In April 2023, Sumitomo Corporation joined the GX League* promoted by the

KNCF, which was established in 1992 and is comprised of Keidanren member

Ministry of Economy, Trade and Industry (METI).

companies that actively work on nature and biodiversity conservation, supports

The GX League is a forum for a group of companies, the government,

nature conservation activities and promotes exchange with NGOs. Sumitomo

universities, and academic institutions to collaborate in taking on the challenge

Corporation is participating in KNCF as its member.

of achieving GX (Green Transformation) and sustainable growth, looking aheadto the carbon neutral in 2050 and transforming society.
In addition to aiming for our own group to be carbon neutral in 2050, we are also
actively working on initiatives that will contribute to the carbon neutrality of thesociety as a whole.
We will further promote these efforts by utilizing the framework of the GX
League.
*Sumitomo Corporation endorsed the GX League Basic Concept, which lays out
the basic guidelines for the full-scale operation of the GX League in March 2022.

▌ Japanese Ministry of the Environment's "COOL CHOICE"Campaigns
For the target to reduce the amount of greenhouse gas emissions by 26% from
FY2013 by FY2030 , Japanese Ministry of the Environment promotes "COOLCHOICE" campaign that recommends the "wise choice" which contributes toglobal warming measures by choosing low carbon type products, service andlifestyle.
Sumitomo Corporation participates in this campaign and promotes actions toconserve energy and reduce waste at its offices to realize the low carbon society.

▌ Support for Keidanren Declaration on Biodiversity andAction Guidelines
In January 2020, Sumitomo Corporation supported the "Keidanren Declaration on
Biodiversity and Action Guidelines (Revised edition)" formulated by Keidanren
and the Keidanren Committee on Nature Conservation.
This Declaration sets forth the determination and action guidelines to address
biodiversity conservation issues from the corporate perspective in order to realize
a sustainable society through building a society in harmony with nature.
Recognizing the importance of biodiversity and natural activities, we will continue
to work to maintain and conserve biodiversity to realize a sustainable society.
© 2023 Sumitomo Corporation▌ Council for Better Corporate Citizenship (CBCC)
CBCC was established in 1989 with the support of Keidanren to provide support
for activities that help Japanese companies to be accepted as good corporate
citizens by communities in which they operate outside of Japan. As a member of
CBCC, Sumitomo Corporation collects the latest information about CSR andengages in CSR dialogue with related organizations in and outside Japan.
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FeatureEnvironment

SocialGovernance

ESG
Quantitative
Data

External
Recognition

Commitment
to External
Initiatives

PrinciplesandandPrinciples
Policies
Policies

IBC
Stakeholder
Capitalism
Metrics

Principles and Policies Supporting Corporate Activities
We have established our own principles and policies while respecting international conduct standards. In accordance with these principles, policies and standards, we are
addressing the Six Material Issues to Achieve Sustainable Growth with Society.

Environment» Sumitomo Corporation Group Environmental Policy
https://www.sumitomocorp.com/en/jp/sustainability/environment-policy» Policies on Climate Change Issues
https://www.sumitomocorp.com/en/jp/sustainability/environmental- management/climate» ISO 14001 Management System Certification
https://www.sumitomocorp.com/en/jp/sustainability/environment-policy#03

Social» The Sumitomo Corporation Group CSR Action Guidelines
for Supply Chain Management
https://www.sumitomocorp.com/en/jp/sustainability/csr» Supply Chain Management Policies for Specific Commodities•

Sumitomo Corporation Group Forest Management Policy
https://www.sumitomocorp.com/en/jp/sustainability/csr/activity#01•

Sumitomo Corporation Group Sourcing Policy for Forest Products
https://www.sumitomocorp.com/en/jp/sustainability/csr/activity#02» Sumitomo Corporation Group’s Human Rights Policy
https://www.sumitomocorp.com/en/jp/sustainability/respect» Global HR Management Policy
https://www.sumitomocorp.com/en/jp/about/talent

Governance» Corporate Governance Principles
https://www.sumitomocorp.com/en/jp/about/governance/detail» Sumitomo Corporation Group Tax Principles
https://www.sumitomocorp.com/jp/-/media/Files/hq/sustainability/material-issues/tax-principlesj.pdf?la=en» Sumitomo Corporation Group Compliance Policy
https://www.sumitomocorp.com/en/jp/about/governance/compliance/policy» Corporate Disclosure Policy
https://www.sumitomocorp.com/en/jp/about/governance/detail/disclosurepolicy» Risk Management Basic Policy
https://www.sumitomocorp.com/en/jp/about/governance/risk» Information Security Policy
https://www.sumitomocorp.com/en/jp/security» Privacy Policy
https://www.sumitomocorp.com/en/jp/privacy» Sumitomo Corporation Group Anti-Corruption Policy
https://www.sumitomocorp.com/jp/-/media/Files/hq/about/governance/compliance/anticorruption-policy.pdf?la=en» Support for the UN Global Compact’s 10 Principles
https://www.sumitomocorp.com/en/jp/sustainability/initiative» The Sumitomo Corporation Group's Basic Principles on Social Contribution Activities
https://www.sumitomocorp.com/en/jp/sustainability/contribution© 2023 Sumitomo Corporation

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FeatureEnvironment

SocialGovernance

ESG
Quantitative
Data

External
Recognition

Commitment
to External
Initiatives

Principles andPolicies

IBC
IBC
Stakeholder
Stakeholder
Capitalism
Capitalism
Metrics
Metrics

Disclosure based on IBC Stakeholder Capitalism Metrics
Overview
In January 2021, Sumitomo Corporation supported and signed the Stakeholder Capitalism Metrics, a standard for non-financial information disclosure published by the International Business Council (IBC) of the World
Economic Forum. Stakeholder Capitalism Metrics is a set of universal and comparable disclosures consisting of 21 core metrics and 34 expanded metrics focused on people, planet, prosperity and governance. Whileutilizing this Metrics, we will further expand the disclosure of nonfinancial information to our stakeholders. In FY2022, our disclosure focuses on the Metrics that are of high importance to the Company. We do not currently
disclose all of them, but we will continue to review our disclosure based on the importance of the Metrics to our company and usefulness to our stakeholders.

Principle of Governance
Response：Core Metric：Expanded Metric

Theme

MetricGoverning Purpose

Setting purpose

Sumitomo Corporation believes that establishing and maintaining better governance and pursuing its business activities will

The company’s stated purpose, as the expression of thehelp to grow and develop sustainably. In addition, such efforts will help Sumitomo Corporation to enhance its corporate valuemeans by which a business proposes solutions to economic,

over the mid-to-long term and to fulfill its social mission as a corporation. Sumitomo Corporation believes that this will also serve

environmental and social issues. Corporate purpose should

the interest of its shareholders and all other stakeholders, including clients, employees, and local communities, and Sumitomo

create value for all stakeholders, including shareholders.

Corporation plans to maintain unstinting efforts to improve its governance further in future.
This is mentioned in Section 2.2 of "Sumitomo Corporation Corporate Governance Principles".

Purpose-led management

The mission of Sumitomo Corporation is to support all our stakeholders, including shareholders, clients, local communities and

How the company’s stated purpose is embedded in company

employees, in their endeavors to achieve prosperity and realize their dreams through our sound business activities.

strategies, policies and goals.

To fulfill this mission, we have established and disclosed management principles and policies including Environmental Policy,
Sumitomo Corporation Group Compliance Policy, Sumitomo Corporation Group Anti-Corruption Policy, CSR Action Guidelines
for Supply Chain Management, Policies on Climate Change Issues, and Sumitomo Corporation Group’s Human Rights Policy.
In addition, to pursue the sustainability of our company and society in accordance with our corporate mission, we have beenworking to enhance the sustainability management since 2020. As part of the efforts, we identified key social issues and set
mid- and long-term goals for each of the social issue. As we strive to solve the social issues through our business, we will
disclose the progress in the ESG Communication Book.
For more information on the key social issues and on the progress of the mid- and long-term goals, please refer to p.9 to 23.

Quality of Governing

Governance body composition

Body

Composition of the highest governance body and its

and its members (Directors: 6 internal, 5 external (of which, 2 female members), Audit & Supervisory Board Members: 2 internal,

committees

economic,

3 external (of which, 1 female member) on p.152. We also disclose the information on our Corporate Governance Report,

environmental and social topics; executive or non-executive;

Integrated Report, "Sumitomo Corporation Corporate Governance Principles" as well as in the Notice of Convocation for our

independence; tenure on the governance body; number ofOrdinary General Meeting of Shareholders. Regarding the number of each individual's other significant positions and the natureeach individual’s other significant positions and commitments,of commitments, Sumitomo Corporation discloses the status of main duties, in accordance with laws and regulations, in theand the nature of the commitments; gender; membership ofbusiness report section in the Notice of Convocation as well as other reference documents for the Ordinary General Meeting ofunder-represented social groups; stakeholder representation.

Shareholders.

© 2023 Sumitomo Corporation

by:competencies

We disclose the composition of the highest governance body (Board of Directors (Audit & Supervisory Board Member system)),
relating

to

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FeatureEnvironment

SocialGovernance

ESG
Quantitative
Data

External
Recognition

Commitment
to External
Initiatives

Principles andPolicies

IBC
IBC
Stakeholder
Stakeholder
Capitalism
Capitalism
Metrics
Metrics

Disclosure based on IBC Stakeholder Capitalism Metrics
Principle of Governance
Theme

Quality ofGoverning Body

：Core Metric：Expanded Metric

MetricResponse

Progress against strategic milestones
Disclosure of the material strategic economic, environmental andsocial milestones expected to be achieved in the following year,
such milestones achieved from the previous year, and how thosemilestones are expected to or have contributed to long-term value.

Sumitomo Corporation sets quantitative and qualitative management targets in its mid-term management plan and makes efforts toachieve the targets through a thorough plan-do-check-act (PDCA) cycle.In the new mid-term management plan "SHIFT 2023“, which has
started in FY2021, we are also monitoring the social and environmental aspects of our business based on the 6 key social issues thatwere identified in FY2020 as well as their mid-and long-term goals and annual action plans. We have been monitoring their progress andwe have started disclosing them since FY2022.
For more information on the key social issues and their mid-and long-term goals, please refer to p.11 to 23.

Remuneration
1. How performance criteria in the remuneration policies relate to
the highest governance body’s and senior executives’ objectives
for economic, environmental and social topics, as connected to thecompany’s stated purpose, strategy and long-term value.

1．
From the perspective of reinforcing the relationship with the Group’s management strategy, the total amount to be paid is determined by
newly reflecting the stock price growth rate of the Company (ratio of the Company’s stock price growth rate to the TOPIX growth rate) inaddition to the performance management indicators contained in the Medium-Term Management Plan “SHIFT2023,” and the amount to be
paid to individual officers is distributed according to their position and personal evaluation and paid after the end of the fiscal year. In
addition, each officer is evaluated on the basis of both financial indicators (status of achievement of business plans, etc. in the respective
areas of responsibility) and non-financial indicators (status of achievement of indicators (KPIs and KAIs) that objectively measure theattainment of strategic targets for each Strategic Business Unit (SBU), which are groups of businesses with the same strategy, and statusof making efforts for priority companywide challenges, etc.) so they can become more aware in regard to their commitment tomanagement strategy and results. In the individual evaluation, comparative weight between evaluation by the financial indicators and theevaluation by non-financial indicators will be set as 50%:50%. Among the non-financial indicators (50%), the three companywide priority
challenges (i. e., business transformation through digital transformation [DX], enhancement of sustainability management, and promotionof Diversity & Inclusion) will be given 20% weight of the total.

2. Remuneration policies for the highest governance body andsenior executives for the following types of remuneration:– Fixed pay and variable pay, including performance-based pay,equity-based pay, bonuses and deferred or vested shares– Sign-on bonuses or recruitment incentive payments– Termination payments– Clawbacks– Retirement benefits, including the difference between benefit
schemes and contribution rates for the highest governance body,senior executives and all other employees

２．
Remuneration policy 1: Remuneration standards and remuneration composition ratios of Executive Directors and Executive
Officers
The Company has set appropriate remuneration standards and remuneration composition ratios based on current business results andthe appropriate level of business results it seeks to achieve in the future, while also bearing in mind the roles required of Executive
Directors and Executive Officers and referring to objective remuneration market research data, etc. provided by external specialized
agencies such as the Willis Towers Watson “Executive Compensation Database” in order to realize a remuneration system that willcontribute to the acquisition, retention and motivation of the Company’s corporate management personnel.
Remuneration policy 2: Performance-linked bonus
In addition to 1. above, the potential range of business results in terms of consolidated net income and basic profit cash flow is assumed
to be 200–600 billion yen, and if business results fall outside of this range, the total amount of performance-linked bonuses to be paid isdecided separately by the Board of Directors based on report from the Nomination and Remuneration Advisory Committee. In addition, inorder to further promote the efforts of the Medium-Term Management Plan SHIFT 2023, we added the year-on-year stock price growthrate as a new indicator for determining the total amount of performance-linked bonuses, and the total amount to be paid is worked out by
multiplying the amount calculated from consolidated net income and basic profit cash flow by the year-on-year stock price growth rate.
The range of the year-on-year stock price growth rate is 80–120%.
Remuneration policy 3: Restricted Performance Share Unit-Based Remuneration
With the aim offering incentives to seek sustainable improvement of the Company's corporate value as well as promoting efforts toincrease our corporate value over the medium to long term, the Company's common shares (restricted) in number determined according
to the Company's stock growth rate (ratio of Company's stock growth and including dividends to the growth rate of TOPIX (Tokyo Stock
Exchange Stock Price Index) ) during the 3 years evaluation period are granted each year in principle. The restriction period will be fromthe day the shares are granted and until the day the recipients resigns or retires from all their positions as Director or Executive Officer of
the Company or any other position determined by the Board of Directors.

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IBC
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Stakeholder
Capitalism
Capitalism
Metrics
Metrics

Disclosure based on IBC Stakeholder Capitalism Metrics
Principle of Governance
Theme：Core Metric：Expanded Metric

MetricResponse

Material issues impacting stakeholders

The basis for the Sumitomo Corporation Group’s operations can be found in Sumitomo’s Business Philosophy, which has formed the

A list of the topics that are material to key stakeholders and thefoundation for Sumitomo’s sustainable development over the course of 400 years. One of the credos of this philosophy states: “Benefit for self

company, how the topics were identified and how the stakeholders

and others, private and public interests are one and the same.” We interpret this credo advocates Sumitomo’s business activities must benefit

were engaged.

not only Sumitomo, but also society around us to achieve sustainable growth together.
In 2017, the Group identified 6 material issues for achieving sustainable growth with society. By constantly clarifying the relationship between
our strategy and business with the material issues, we have been conducting sustainability management with the awareness that our businessactivities will contribute to solving social issues.
In 2020, to further enhance the sustainability management and clarify our role in realizing a sustainable society, we have identified 6 key social
issues that we address through our business and corporate activities. The 6 key social issues are: “Mitigation of climate change”, “Circular
economy”, “Respect for human rights”, “Development of local society and economy”, “Improvement of living standard” and “Quality education”.

Stakeholder

In addition, we have set long-term goals for each issue and medium-term goals that indicate more specific initiative.
Progress toward each goal is disclosed on p.11 to 23.

Engagement

When identifying the 6 key social issues, we launched an internal project team, which first created a long list of global social issues based on
the UN Sustainable Development Goals. Also, considering the characteristics of our business activities as an integrated general trading
company, the project team came up with hypotheses related to important issues deeply involving the Group and picked out several issues
from the long list. At the same time, they conducted surveys and interviews with the general managers of each business unit and division
concerning opportunities and risks related to social issues within the strategies and business activities of each organization based on the long
list. They then analyzed the relationship of our businesses to each issue. Finally, after comparing their hypotheses with the survey results andorganizing them into categories, the team identified 6 key social issues. The key social issues and long-term goals were decided in June 2020
after resolutions by the Management Council and the Board of Directors. We also decided on medium-term goals in May 2021. In this seriesof processes, opinions were exchanged with experts on the environment and human rights, institutional investors, international organizations,and others to verify that the expectations of our various stakeholders have been properly reflected.
Anti-corruption
1.Total percentage of governance body members, employees andand more than 10,240 officers/employees participated in FY2022.

business partners who have received training on the

2. No incident was confirmed in FY2022 in which the Company has been fined nor convicted of bribery of public officials.

organization’s anti-corruption policies and procedures, broken

3. Sumitomo Corporation Group implements strict measures to prevent bribery, inappropriate payments, and all other forms of corruption.

down by region.

Specifically, we have established the "Rules for Prevention of Bribery of Public Officials", which regulate the provision of entertainment,
gifts, invitations and donations to domestic and foreign public officials as well as the selection of service providers (such as agents,

2.

Ethical Behaviour

1. Sumitomo Corporation and its Group companies have conducted more than 70 seminars and other training programs on anti-corruptiona) Total number and nature of incidents of corruption confirmed
during the current year, but related to previous years; andb) Total number and nature of incidents of corruption confirmed
during the current year, related to this year.
3.Discussion of initiatives and stakeholder engagement to improve

consultants or other business intermediaries). We extend these rules to overseas offices and Group companies and we also offer ongoing
employee education and work constantly to prevent bribery and corruption.
Our "Sumitomo Corporation Group Anti-Corruption Policy", which summarizes the Group’s principles and policies outlined above, sets out
the Group’s basic principles in this area and explains our anti-bribery system and our initiatives for the prevention of bribery to our business
partners including service providers, and request their understanding and cooperation.

the broader operating environment and culture, in order to combat
corruption.
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Disclosure based on IBC Stakeholder Capitalism Metrics
Principle of Governance
Theme：Core Metric：Expanded Metric

MetricResponse

Protected ethics advice and reporting mechanisms

Our internal rules stipulate "Immediate Report", which means that any issues or potential issues in relation to

A description of internal and external mechanisms for:compliance must be reported immediately to their line manager or to the relevant department of the Corporate Group.

1.Seeking advice about ethical and lawful behaviour and Such issues include not only the violation of antitrust/competition laws or anti-bribery/corruption laws but alsoorganizational integrity; and2.Reporting concerns about unethical or unlawful
behaviour and lack of organizational integrity.

workplace misconduct, falsification of accounts, or harassment. If reporting through the usual reporting line is difficult
for some reason, we maintain a "Speak-Up System" available to officers and employees to report the issue to theChief Compliance Officer through an internal or external hotline.
In addition, we have developed and launched the group-based Speak-Up System, which enables officers andemployees of group companies both in and outside Japan to report compliance-related issues. For more details,
please see our website:.
Also, appropriate departments respond to advice and reports received from external stakeholders through the Contact
Form on our website, etc.

Ethical Behaviour

Monetary losses from unethical behaviour

In FY2022, there was no incident (monetary loss) at Sumitomo Corporation.

Total amount of monetary losses as a result of legal
proceedings associated with fraud, insider trading,anti-trust, anti-competitive behaviour, market
manipulation, malpractice or violations of other relatedindustry laws or regulations.
Alignment of strategy and policies to lobbying

In the course of our global and diverse business activities, we participate in various organizations and meetings,

The significant issues that are the focus of the

including Keidanren (Japan Business Federation), to communicate our opinions. One example of our participation incompany’s participation in public policy development

the public sector is the study of GX (Green Transformation) League established by the Ministry of Economy, Tradeand lobbying; the company’s strategy relevant to theseand Industry (METI) in April 2022 for the purpose of realizing a carbon-neutral society. Through the GX League, weareas of focus; and any differences between its lobbying will communicate our opinions to encourage the creation of new businesses that will help make society carbon neutral.
positions and its purpose, stated policies, goals or otherIn addition, the amount of our political contribution in FY2022 is 28 million yen.

public positions.

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Disclosure based on IBC Stakeholder Capitalism Metrics
Principle of Governance
There：Core Metric：Expanded Metric

MetricResponse

Integrating risk and opportunity into business process

Sumitomo Corporation Group faces a variety of social issues in the course of its wide-ranging business activities. As the world

Company risk factor and opportunity disclosures that clearly

strives to achieve a sustainable society, in 2020, we have identified 6 key social issues and their long-term goals to further clarify ouridentify the principal material risks and opportunities facing therole. Furthermore, in 2021, based on the long-term goals, we have set mid-term goals to promote more specific initiatives, such ascompany specifically (as opposed to generic sector risks), thethe development of business opportunities that capture changes in the business environment surrounding each issue and thecompany appetite in respect of these risks, how these risks and development of risk management mechanism. The progress of these initiatives will be monitored and discussed at the Corporate
opportunities have moved over time and the response to those

Sustainability Committee.

changes. These opportunities and risks should integrate

Progress toward each goal is disclosed on p.11 to 23.

material economic, environmental and social issues, including
climate change and data stewardship.

In addition, when making new business investment, we assess its social and environmental impact. The Company Investment
Committee*, which the Corporate Sustainability team is a member of, discusses including the perspective of social andenvironmental risks and opportunities.
*Advisory body to the Management Council, which is the highest executive-level decision-making body

Risk and
Opportunity
Oversight

Please see p.6 for our business risks and opportunities identified for various sustainability topics.
Economic, environmental and social topics in capital

At Sumitomo Corporation, the discussion of management resource allocation is done at the biannual Strategy Meeting where theallocation framework

top management participates. The decision is finalized at the Management Council, which is the highest executive-level decision-

How the highest governance body considers economic,

making body and is executed under the supervision of the Board of Directors. When setting the areas of business growth fields,

environmental and social issues when overseeing major capital which are the focus points of the resource allocation in each business areas, we also consider opportunities and risks in each
allocation decisions, such as expenditures, acquisitions andbusiness areas that arise from social issues.

divestments.

When discussing a new investment opportunity in individual business, we consider not only profitability, but also environmental andsocial impacts and/or risks based on the uniqueness of the business. If necessary, we hire an external expert and conduct athorough due diligence on the environmental and social aspects (i.e. pollution, biodiversity, use of water and other limited natural
resources, respect of human rights, occupational health and safety, other workplace environment, impact on local communities etc.)
and make the final investment decision. Also, we continuously monitor the environmental and social impact in the post-investment
process as well.
In addition, policies and initiatives pertaining to non-financial aspects that are essential for promoting our sustainability management
are discussed at the Corporate Sustainability Committee and then proposed at the Management Council.
All of these processes are carried out under the supervision of the Management Council as well as the Board of Directors.
For more information on our risk management, please refer to p.141 and 142.

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Disclosure based on IBC Stakeholder Capitalism Metrics
Planet
Theme：Core Metric

MetricResponse

Greenhouse gas (GHG) emissions

Sumitomo Corporation Group’s greenhouse gas emissions (thousand t-CO2e) for FY2022 are as follows:：Expanded Metric

For all relevant greenhouse gases (e.g. carbon dioxide, methane, nitrous • Scope1: 1,528
oxide, F-gases etc.), report in metric tonnes of carbon dioxide equivalent(Breakdown by GHG type)(tCO2e) GHG Protocol Scope 1 and Scope 2 emissions.

CO2 1,268

Estimate and report material upstream and downstream (GHG Protocol

CH4 153

Scope 3) emissions where appropriate.

N2O 107• Scope2 : 553• Scope3 Upstream Transportation and Distribution: 4.00
• Scope3 Waste: 0.01
• Scope3 Business Trips: 10.28• Scope3 Employee Commuting: 0.51
• Scope3 Downstream Leased Assets : 31.63
For more information such as the reporting boundaries and CO2 emissions, see our Environmental Data available on P.145 and 146.
Also, please refer to P.59 for our CO2 emission reduction initiatives that we announced as the mid-term goal for climate change mitigation.

Climate Change

TCFD implementation

Sumitomo Corporation has been supporting the final recommendations of the TCFD since March 2019. We have also been disclosing information since

Fully implement the recommendations of the Task Force on Climate-2020 on our climate change-related governance, strategy, risk management, targets and KPIs in compliance with the framework recommended by the

related Financial Disclosures (TCFD). If necessary, disclose a timeline of TCFD. For more information, please see P.28 to 59.
at most three years for full implementation. Disclose whether you haveset, or have committed to set, GHG emissions targets that are in line

Also, we have identified "mitigation of climate change" as one of the 6 key social issues which the Group will address to achieve a sustainable society.

with the goals of the Paris Agreement – to limit global warming to well

As a long-term goal, the Group will aim to carbon neutralize its business by 2050, and also will aim to achieve its mid-term goal, which is to reduce CO2

below 2°C above pre-industrial levels and pursue efforts to limit warming

emissions by 50% or more by 2035 compared to 2019 levels.

Paris-aligned GHG emissions targets

As stated above, we have a long-term goal of seeking to become carbon neutral in the Group's business by 2050 and we will also contribute to theDefine and report progress against time-bound science-based GHG

carbon neutralization of society. Also, we have set a mid-term goal of reducing the CO2 emissions by 50% or more by 2035 compared to 2019 levels.

to 1.5°C – and to achieve net-zero emissions before 2050.

emissions targets that are in line with the goals of the Paris Agreement –to limit global warming to well below 2°C above pre-industrial levels andFor specific action plans and initiatives, please see P.31 and 59.

pursue efforts to limit warming to 1.5°C. This should include defining adate before 2050 by which you will achieve net-zero greenhouse gas
emissions, and interim reduction targets based on the methodologies
provided by the Science Based Targets initiative, if applicable.
If an alternative approach is taken, disclose the methodology used to
calculate the targets and the basis on which they deliver on the goals of
the Paris Agreement.

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IBC
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Disclosure based on IBC Stakeholder Capitalism Metrics
PlanetTheme

Nature Loss

：Core Metric：Expanded Metric

MetricResponse

Land use and ecological sensitivity
Report for operations (if applicable) and full supply chain (ifmaterial):

In the Ambatovy Project, a company in the Republic of Madagascar in which we have an equity stake, we are developing mines inan area of 1,600 hectares. We run an offset program in line with guidance from the Business and Biodiversity Offsets Program(BBOP) and IFC Performance Standard 6, and as an initiative to mitigate the impact of development on ecosystems by regeneratingor creating other ecosystems. As a specific example, we have offset our impacts across 14,000 hectares of land, or nine times thearea of our business, including conserving 6,800 hectares of forested land that is similar to the land being developed– Area of land used for the production of basic plant, animal or
mineral commodities (e.g. the area of land used for forestry,
agriculture or mining activities).
– Year-on-year change in the area of land used for the
production of basic plant, animal or mineral commodities.
Note: Supply-chain figures can initially be estimated where
necessary based on the mass of each commodity used and theaverage mass produced per unit of land in different sourcing
locations.
– Percentage of land area in point 1 above or of total plant,
animal and mineral commodity inputs by mass or cost, coveredby a sustainability certification standard or formalized
sustainable management programme. Disclose the certification
standards or description of sustainable management
programmes along with the percentage of total land area, massor cost covered by each certification standard/programme.
Land use and ecological sensitivity
Report the number and area (in hectares) of sites owned,

In June 2022, we joined the TNFD Forum and conducted a trial analysis based on v0.4 of the TNFD beta framework. For the resultsof the trial analysis conducted in FY2023, please see p.73 to 78.

leased or managed in or adjacent to protected areas and/or
key biodiversity areas (KBA).

Fresh water
availability

Water consumption and withdrawal in water-stressed

The Group's water consumption and withdrawal in water-stressed areas* for FY2022 are as follows.

areas• Total water consumption : 59,267 megaliters

Report for operations where material: mega litres of water

Of this, 6.6% in water-stressed areas*

withdrawn, mega litres of water consumed and the percentage
of each in regions with high or extremely high baseline water• Total water withdrawal : 66,452 megaliters

stress, according to WRI Aqueduct water risk atlas tool.

Of this, 6.5% in water-stressed areas*

Estimate and report the same information for the full value
chain (upstream and downstream) where appropriate.

* Water-stressed areas :The regions with high or extremely high baseline water stress, according to WRI Aqueduct water risk atlastool.

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Disclosure based on IBC Stakeholder Capitalism Metrics
PeopleTheme：Core Metric：Expanded Metric

MetricResponse

Diversity and inclusion (%)

The Sumitomo Corporation Group has a diverse workforce made up of people who have different lifestyles and values in addition to differences in

Percentage of employees per employee category, by age group, gender

gender and nationality. It is essential to utilize the rich mix of “knowledge” held by diverse people as a source of competitiveness in order to survive andand other indicators of diversity (e.g. ethnicity).

stay ahead in complex business domains. We will focus on the diversity of our workforce on a global basis, particularly on the strengths of individuals,
and bring these strengths together in combination. By doing so, we will drive the progress of our growth strategies.
Gender ratio at Sumitomo Corporation (non-consolidated) as of March 2023:
Male: 3,761 / Female: 1,307
Percentage by age group at Sumitomo Corporation (non-consolidated) as of March 2023:
20s
30s
40s
50s
60s
70s
Total

Pay equality (%)
Ratio of the basic salary and remuneration for each employee category

Age group

Number of employees
861
1,370
1,131
1,300
402
4
5,068

％
17.0%
27.0%
22.3%
25.7%
7.9%
0.1%
100%

There is no gap in basic salary and remuneration in each employee category such as gender and ethnicity etc.at Sumitomo Corporation (nonconsolidated). Because we have adopted a job grading system, there are no major salary gaps between people doing equivalent jobs.

by significant locations of operation for priority areas of equality: women
to men, minor to major ethnic groups, and other relevant equality areas.

Dignity and Equality

Wage level (%)

Sumitomo Corporation Group sets salary level that exceeds minimum wage level in each region.

1.Ratios of standard entry level wage by gender compared to local

The wage level at Sumitomo Corporation (non-consolidated) in FY2022 is as follows:

minimum wage.
2.Ratio of the annual total compensation of the CEO to the median of
the annual total compensation of all its employees, except the CEO.

1. The standard entry level wage exceeds the minimum wage level in Japan and there is no gap between gender.
New graduate with master's degree or higher: 290,000 JPY/month
New graduate with bachelor's degree: 255,000 JPY/month
2. The ratio of the annual total compensation of the President and CEO to the median of the annual total compensation of all its employees at Sumitomo
Corporation (non-consolidated), except the President and CEO, is 411:16.
（President and CEO: 411 mil. JPY, Median of the annual total compensation of all employees at Sumitomo Corporation: 16 mil. JPY)

Risk for incidents of child, forced or compulsory labour

In accordance with the Sumitomo Corporation Group's Human Rights Policy, Sumitomo Corporation began human rights due diligence in 2020. We

An explanation of the operations and suppliers considered to haveidentified 8 salient human rights issues, such as "forced labor and child labor", that should be addressed with priority so that we can assess impacts

significant risk for incidents of child labour, forced or compulsory labour.

concerning human rights throughout the Group. In line with the results of our FY2020 desktop research, we have been conducting human rights due

Such risks could emerge in relation to:diligence in each of our business units since FY2021. We identified food and textile related businesses as areas with high risks of forced and child labora) type of operation (such as manufacturing plant) and type of supplier;in the supply chain, and we confirmed the status of risk management in both business areas by conducting internal interviews. Specifically, in the textile

andbusiness, CSR audits are being conducted based on standards of some of our customers, at factories where we manage or outsource. Also, the foodb) countries or geographic areas with operations and suppliers

wholesale business properly manages to minimize the risk of forced and child labor by conducting supplier questionnaire to suppliers associated withconsidered at risk.

high-risk countries or goods, based on the list of TVPRA（Trafficking Victims Protection Reauthorization Act）published by the US Bureau ofInternational Labor Affairs (ILAB).
In addition, as conflict minerals poses a serious risk of forced and child labor, we monitor the risk by regularly checking the status and result of conflictminerals survey in the Group. For more information on our human rights related initiatives, please see p.82 to 91.

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Disclosure based on IBC Stakeholder Capitalism Metrics
PeopleTheme：Core Metric：Expanded Metric

MetricResponse

Freedom of association and collective bargaining at risk (%)
1.Percentage of active workforce covered under collective bargaining
agreements.

As of March 2023, the number of members of the Sumitomo Corporation Labor Union is 3,107, accounting for 62% of all employees of Sumitomo
Corporation (non-consolidated).
For more information on our human rights related initiatives, please see p.119.

2.An explanation of the assessment performed on suppliers for which
the right to freedom of association and collective bargaining is at risk,
including measures taken by the organization to address these risks.

Human rights review, grievance impact & modern slavery (#, %)Dignity and Equality

1.In accordance with the Sumitomo Corporation Group’s Human Rights Policy, Sumitomo Corporation began human rights due diligence in 2020.
The Sumitomo Corporation Group’s business activities extend to various industries and regions.
1.Total number and percentage of operations that have been subject to
We started by conducting a desk top survey to confirm the Group’s businesses and their value chains, and developed a hypothesis on businesses thathuman rights reviews or human rights impact assessments, by country. may be exposed to high risks and human rights issues that are closely related to the value chains in those businesses.
We then exchanged opinions with stakeholders including outside experts and also hired outside experts and conducted internal interviews on 12
2.Number and type of grievances reported with associated impacts
business teams to verify the hypothesis. Through these consultations, we classified the human rights issues according to the likelihood of these issues
related to a salient human rights issue in the reporting period and an
emerging in the Group’s business and also the degree of severity in case they emerge. As a result, we identified 8* salient human rights issues within
explanation on type of impacts.
the Sumitomo Corporation Group.
*The 8 salient issues: labor conditions (wages and working hours), freedom of association and the right to collective bargaining, forced labor and child
3.Number and percentage of operations and suppliers considered tohave significant risk for incidents of child labour, forced or compulsory labor, occupational health and safety, health and safety of local residents, land rights, discrimination and harassment, personal information and privacy.
Please see p.83 for details on the human rights due diligence process.
labour. Such risks could emerge in relation to:a) type of operation (such as manufacturing plant) and type of supplier;
2. Out of the new cases reported or pointed out by stakeholders including civil society organizations, local communities and regulatory authorities inandFY2022, 10 cases* were related to the 8 salient human rights issues. We investigate the issues reported by the stakeholders, and if corrective action isb) countries or geographic areas with operations and suppliers
necessary, appropriate measures are considered and implemented.
considered at risk.
*Excludes incidents of discrimination and harassments. Also, the occupational health and safety does not include work-related injuries
or fatalities.
3. Please refer to our comments in the section "Risk for incidents of child, forced or compulsory labour“.
Health and safety (%)
1. The number and rate of fatalities as a result of work-related injury;
high-consequence work-related injuries (excluding fatalities);
recordable work-related injuries; main types of work-related injury;
and the number of hours worked.

The coverage of the following data is Sumitomo Corporation (non-consolidated):

2. An explanation of how the organization facilitates workers’ access to
non-occupational medical and healthcare services, and the scope ofaccess provided for employees and workers.

2. Sumitomo Corporation (SC) promotes the following medical and healthcare services:•
In-house clinic (internal medicine and dentistry) : All officers and employees of SC have access to the clinic during work hours. Support is provided
from the perspective of achieving work/health balance where, in addition to receiving periodic health checkups, people requiring follow-up treatment
can consult specialists and have interviews with occupational health physicians within the clinic.
•
Massage room, Counseling Center: All employees of SC Group have access to the services during work hours.
•
Advanced Healthcare Expense Program：This covers conditions that give rise to substantial economic burdens as a result of treatment not coveredby insurance and the program is available to all employees of SC. By broadly covering treatment not covered by health insurance, the program cansupport employees receive treatment with reassurance and return to work at the earliest possible time or continue working while receiving treatment.
•
Health consultation service:Since the incidence and death rates of breast cancer and uterine cancer have been increasing among younger womenin recent years, we have set up a consultation service for women’s specific health issues to strengthen the dissemination of such information and to
introduce them to medical institutions that offer gynecological exams as a stand-alone service. Furthermore, we are also promoting andstrengthening various health management measures through a collaborative health program with the Sumitomo Corporation Corporate Health
Insurance Society.

Health andWell-being© 2023 Sumitomo Corporation

1. Work-related fatalities: FY2020: 0, FY2021: 1, FY2022: 0
High-consequence work-related injuries (excl. fatalities): FY2020: 0, FY2021: 0, FY2022: 0
Recordable work-related injuries: FY2020: 1, FY2021: 2, FY2022: 2
We do not disclose the details (i.e. types of work-related injury, number of hours worked) .

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Stakeholder
Stakeholder
Capitalism
Capitalism
Metrics
Metrics

Disclosure based on IBC Stakeholder Capitalism Metrics
People
Theme

Health andWell-being：Core Metric：Expanded Metric

MetricResponse

Monetized impacts of work-related incidents on

There were two occupational incidents at Sumitomo Corporation (non-consolidated) in FY2022, but there was noorganization (#, $)financial impact.

By multiplying the number and type of occupational
incidents by the direct costs for employees, employers
per incident (including actions and/or fines from
regulators, property damage, healthcare costs,
compensation costs to employees).
Training provided (#, $)The following data covers training programs for Sumitomo Corporation (non-consolidated) which were conducted by

Average hours of training per person that thethe HR department in FY2022. The trainings are not restricted by gender.

organization’s employees have undertaken during thereporting period, by gender and employee category

Number of participants: 5,068 employees(total number of hours of training provided to employees Total number of hours of training provided: 177,320 hours （including 80,933 hours by Human Resources Dept.)
divided by the number of employees).

Total expenditure: 1.929 bil. JPY

Average training and development expenditure per fulltime employee (total cost of training provided to
Skills for the Future employees divided by the number of employees).

Average training hours per employee:35.0hours
Development expenditure per employee: 380,000 JPY

Monetized impacts of training – Increased earning

The following data covers training programs for Sumitomo Corporation (non-consolidated) which were conducted bycapacity as a result of training intervention (%, $)the HR department in FY2022.

1.Investment in training as a percentage (%) of payroll.
2.Effectiveness of the training and development throughincreased revenue, productivity gains, employee
engagement and/or internal hire rates.

1. Investment in training as a percentage (%) of payroll: 2.7％ (training expenditure 1.929 bil. JPY/ total pay roll of
72.092 bil. JPY)
2. In the Engagement Survey conducted in 2022, scores on “Education and Training” were above the average forhigh-performing companies, due in part to training, contributing to higher employee engagement.

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Sustainability of
Sumitomo Corporation
Group

FeatureEnvironment

SocialGovernance

ESG
Quantitative
Data

Commitment
to External
Initiatives

External
Recognition

Principles andPolicies

IBC
IBC
Stakeholder
Stakeholder
Capitalism
Capitalism
Metrics
Metrics

Disclosure based on IBC Stakeholder Capitalism Metrics
Prosperity
Theme

MetricResponse

Absolute number and rate of employment

The data for Sumitomo Corporation (non-consolidated) is as follows:：Core Metric：Expanded Metric

Total number and rate of new employee hires during the reporting period, 1-1. Absolute number of new graduate hires in FY2022
by age group, gender, other indicators of diversity and region.

Total number and rate of employee turnover during the reporting period,by age group, gender, other indicators of diversity and region.

〈by gender〉 Male: 72, Female: 29 (Male 71.3%, Female 28.7%)〈by age group〉 20s:101
1-2. Absolute number of mid-career hires in FY2021〈by gender〉 Male: 47, Female: 28 (Male 62.7%, Female 37.3%)〈by age group〉 20s: 11, 30s: 45, 40s: 16, 50s: 3 (20s:14.7%, 30s: 60.0%, 40s: 21.3%, 50s:4.0%)
2. Average Years of Service per Person/Turnover rate in FY2022※Please see p.149 for the historical data.

〈by gender〉 Male: 19 years1 month/3.1%, Female 16 years 6 month/ 2.8%

Economic contribution

1. For items a through e, please refer to Consolidated Financial Statements beginning on p.127 of FY2022 Consolidated Financial Statements. For item f, please

1.Direct economic value generated and distributed (EVG&D), on anrefer to the "Expenditure for social contribution activities" listed on p.151of this ESG Communication Book 2023.

accruals basis, covering the basic components for the organization’s
global operations, ideally split out by:

2. We do not currently conduct this assessment.

a) Revenuesb) Operating costsc) Employee wages and benefits

Employment andWealth Generationd) Payments to providers of capitale) Payments to governmentf) Community investment
2.Financial assistance received from the government: total monetary
value of financial assistance received by the organization from any
government during the reporting period.
Financial investment contribution

The result for Sumitomo Corporation Group in FY2022 is as follows:

1.Total capital expenditures (CapEx) minus depreciation, supported by

1. In our revised new Medium-Term Management Plan SHIFT 2023 which covers FY2021 through FY2023, we plan to make investments and loans totaling 1,140
billion yen during the period of the new Medium-Term Management Plan, and we will continue to make investments and loans mainly in areas with market potential
and where we can fully demonstrate our strengths. For further details, please refer to [Management Policies, Business Environment and Management Challenges]
on p.16 of the Annual Financial Report for the year ended March 31, 2023.

narrative to describe the company’s investment strategy.
2.Share buybacks plus dividend payments, supported by narrative todescribe the company’s strategy for returns of capital to shareholders.

© 2023 Sumitomo Corporation

2.Sumitomo Corporation aims to increase dividends by achieving medium and long-term earnings growth while adhering to its fundamental policy of paying
shareholders a stable dividend over the long term.
According to our dividend policy since FY2022, we decide the amount of annual dividends within a DOE (dividend on equity ratio) range of 3.5% to 4.5% by taking
into consideration the status of fundamental earnings capacity, cash flows, and other factors, with a consolidated payout ratio of about 30% as a guideline. If 30% of
the profit for the year exceeds the above range, we will pay dividends or repurchase our shares for the excess portion in a flexible and agile manner. Profit for theyear attributable to owners of the parent in FY2022 totaled 565.2 billion yen, the annual dividend for FY2022 was 115 yen per share.
On February 6, 2023, we decided to repurchase shares (between February 7 and April 28, 2023) up to a maximum value of 50 billion yen as an additional return toshareholders for this year because the upper limit of the DOE range was exceeded. As a result, total dividends paid for FY2022 were 142.849 billion yen (or180.798 billion yen with repurchase of shares included).
The above share repurchase had ended on April 28, 2023. In addition, we decided on May 9, 2023, to establish an additional share repurchase period (May 10 toJune 9, 2023) up to a maximum value of 20 billion yen. This repurchase period had also ended on June 9, 2023.

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ESG Communication Book

Sustainability of
Sumitomo Corporation
Group

FeatureEnvironment

SocialGovernance

ESG
Quantitative
Data

Commitment
to External
Initiatives

External
Recognition

Principles andPolicies

IBC
IBC
Stakeholder
Stakeholder
Capitalism
Capitalism
Metrics
Metrics

Disclosure based on IBC Stakeholder Capitalism Metrics
Prosperity
Theme：Core Metric：Expanded Metric

MetricResponse

Infrastructure investments and services supported

The 6 key social issues that Sumitomo Corporation has set have two themes: "the sustainability of society" and "development andQualitative disclosure to describe the below components:
1.Extent of development of significant infrastructure investments
and services supported.

advancement of society".
The sustainability of society is a globally shared goal as well as a major premise of the Group’s business. On the other hand, the solutions forpursuing the sustainability of society will be generated from further social and economic development and therefore, we believe that these two

2.Current or expected impacts on communities and local economies, themes are mutually complementary.
The infrastructure business including power generation, water production, transportation and communication, which we provide on a global
including positive and negative impacts where relevant.
3.Whether these investments and services are commercial, in-kind

Employment andor pro bono engagements.

scale, contributes to the "development and advancement of society". We will continue our efforts to contribute to the development of local
society and economy as well as improving people's living standards through our sound business activities.
While society seeks for sustainable development, the expectation for infrastructure business has also shifted.
To capture progress in global climate change mitigation, we will expand our renewable energy business and also develop and deploy carbon

Wealth Generation

free energy such as hydrogen and ammonium business, which are essential in building decarbonization system and sustainable energy cycle
required to realize a carbon neutral society. In addition, we will expand new power and energy services (i.e. large-scale storage batteriesbusiness, battery reuse business, power energy platform business, hybrid energy service business etc.).
Furthermore, not only developing infrastructure as business, but we also have been providing infrastructure as part of our social contribution
initiative. For example, as part of the mining business, roads, bridges, water supplies, hospitals, and schools were constructed for the local
community.
We disclose the impact to environment and society on p.145 to 153.
For more information on our infrastructure business, please refer to p.65 and 123.

Innovation of Better Total R&D expenses ($)
Products and

The total R&D cost for Sumitomo Corporation Group in FY2022 is 2,061 mil. JPY.

Total costs related to research and development.

Services
Total tax paid

Please see the Consolidated Statement of Cash Flows, which is listed on p.132 and 133 of FY2022 Consolidated Financial Statements, for

The total global tax borne by the company, including corporate

information on income tax paid. We do not currently analyze the total taxes paid except for the income tax.

income taxes, property taxes, non-creditable VAT and other sales

Community andSocial Vitality

taxes, employer-paid payroll taxes, and other taxes that constitutecosts to the company, by category of taxes.
Total Social Investment ($)

The amount of expenditure for our social contribution activities in FY2022 was 1.910 billion yen and the number of employees who used the

Total Social Investment (TSI) sums up a company’s resources used volunteer leave program was 1. For details, please refer to p.120 to 125 and 151 in the ESG Communication Book.
for “S” in ESG efforts defined by CECP Valuation Guidance.

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Independent Assurance Report
To the Representative Director, President and CEO of Sumitomo Corporation

We were engaged by Sumitomo Corporation (the “Company”) to undertake a limited assurance
engagement of the environmental performance indicators marked with ★ (the “Indicators”) for the period
from April 1, 2022 to March 31, 2023 included in its ESG Communication Book 2023 – ESG Data (the“ESG Communication Book”) for the fiscal year ended March 31, 2023.

Conclusion
Based on the procedures performed, as described above, nothing has come to our attention that causes
us to believe that the Indicators in the ESG Communication Book are not prepared, in all material
respects, in accordance with the Company’s reporting criteria as described in the ESG CommunicationBook.

Our Independence and Quality Management
The Company’s Responsibility
The Company is responsible for the preparation of the Indicators in accordance with its own reporting
criteria (the “Company’s reporting criteria”), as described in the ESG Communication Book.

Our Responsibility
Our responsibility is to express a limited assurance conclusion on the Indicators based on theprocedures we have performed. We conducted our engagement in accordance with the ‘International
Standard on Assurance Engagements (ISAE) 3000, Assurance Engagements other than Audits or
Reviews of Historical Financial Information’ and the ‘ISAE 3410, Assurance Engagements on
Greenhouse Gas Statements’ issued by the International Auditing and Assurance Standards Board. The
limited assurance engagement consisted of making inquiries, primarily of persons responsible for the
preparation of information presented in the ESG Communication Book, and applying analytical and otherprocedures, and the procedures performed vary in nature from, and are less in extent than for, areasonable assurance engagement. The level of assurance provided is thus not as high as that provided
by a reasonable assurance engagement. Our assurance procedures included:Interviewing the Company’s responsible personnel to obtain an understanding of its policy for
preparing the ESG Communication Book and reviewing the Company’s reporting criteria.

Inquiring about the design of the systems and methods used to collect and process the Indicators.



Performing analytical procedures on the Indicators.

Examining, on a test basis, evidence supporting the generation, aggregation and reporting of the
Indicators in conformity with the Company’s reporting criteria, and recalculating the Indicators.



Visiting KIRIU OITA CORPORATION selected on the basis of a risk analysis.



Evaluating the overall presentation of the Indicators.

We have complied with the Code of Ethics for Professional Accountants issued by the International
Ethics Standards Board for Accountants, which includes independence and other requirements foundedon fundamental principles of integrity, objectivity, professional competence and due care, confidentiality
and professional behavior. In accordance with International Standard on Quality Management 1, we
design, implement and operate a system of quality management including policies or procedures
regarding compliance with ethical requirements, professional standards and applicable legal andregulatory requirements.

/s/ Kazuhiko Saito
Kazuhiko Saito, Partner, Representative Director
KPMG AZSA Sustainability Co., Ltd.
Tokyo, Japan
September 7, 2023

Notes to the Reader of Independent Assurance Report:
This is a copy of the Independent Assurance Report and the original copies are kept separately by the Company and
KPMG AZSA Sustainability Co., Ltd.

© 2023 Sumitomo Corporation

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