Communication Book
2018

ESG Communication Book
Contents◆ Editorial Policy

・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・1◆ Sustainability of Sumitomo Corporation Group
Sustainability of Sumitomo Corporation Group・・・・・・・・・・・・・・2

・・・・・・・・・・・・・・・・・・・2

Business Philosophy and Corporate Mission Statement

・・・・・・・・・・・3

・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・4Material Issues

Value Creation Model・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・7

Medium-term Management Plan

・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・8

How to understand sustainability/sustainability promotion system
Social issues and the Group's business activities◆ Environment

・・・9・・・・・・・・・・・・・・・11

・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・13

Environmental management

・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・13

Climate change

・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・17

Water resources・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・20

Biodiversity

・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・22

Environmental pollution

Resource use

・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・25

・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・27◆ Social

・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・28

Human rights

・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・28

Labor practices

・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・30

Work Health and Safety

・・・・・・・・・・・・・・・・・・・・・・・・・38

Human resources development・・・・・・・・・・・・・・・・・・・・・・・・・44

Supply chains・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・48
・・・・・・・・・・・・・・・・・・・50

Industrial and technology innovation
Healthcare

・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・51

Local infrastructure/community planning・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・54

Social Contributions◆ Governance・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・56
・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・56

Corporate governanceCompliance・・・・・・・・・・・・・・・・53

・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・62

Social and environmental risk management
Information security
Stakeholder engagement

・・・・・・・・・・・・・65

・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・67
・・・・・・・・・・・・・・・・・・・・・・・・・・68◆ ESG quantitative data

・・ ・・・・・・・・・・・・・・・・・・・・・・・・・・・・69◆ Third-party assessment

・・・・・・・・・・・・・・・・・・・・・・・・・・・・77◆ Principles and policies supporting corporate activities
・・・・・・・・・・・・・・・・・・・・・・・・78

ESG Communication Book
Editorial Policy
Mainly non-financial
information

Concept behind sustainability information
disclosure
Sumitomo Corporation publishes an integrated report as acommunication tool to disclose information to investors andother stakeholders. In the Integrated Report, financial
information is combined with non-financial information andinitiatives to increase the corporate value over the long term
are reported.
We have released ESG (Environment, Social, Governance)
Communication Book 2018 to report detailed information onsustainability, mainly non-financial information, from the
ESG perspective.

ESG
Communication
Book
Concise/focus
on high-priority
information

Integrated
ReportWebsiteDetailed/
extensive andcomprehensive

Reporting scope
Sumitomo Corporation and group companies

Mainly financial
information

Reporting periodBusiness activities mainly in fiscal 2017 (April 2017-March2018), including some policies and activities before March
Referenced Guidelines
2017 and after April 2018.

Month of issue
April 2019

○ Ministry of Economy, Trade and Industry:
Guidance for Collaborative Value Creation○ISO26000 :Guidance on social responsibility○Ministry of the Environment:
Environmental Accounting Guidelines. 2005
○ METI / MOE:
Calculation and Reporting Manual for Greenhouse Gas Emissions

Contact
Sumitomo Corporation
Corporate Sustainability Department
TEL: 03-6285-8419
FAX: 03-6285-6310
E-mail: sc-csr@sumitomocorp.com

1

Sustainability of Sumitomo
Corporation Group

Environment

SocialGovernance

ESG quantitative data

Third-party assessment

Sustainability of Sumitomo Corporation Group
People around the world are facing various social issues that must be overcome through concerted efforts. Environmental issues such as climate change pose a serious
threat to the sustainability of human society as a whole. Social issues such as human rights have been recognized as universal issues that we should addresstranscending regional and industrial differences. In response, companies are expected to take more active part in these issues in order to achieve a sustainable society.
In terms of ensuring sustainable growth of companies and improving corporate value over the long term, it is important to clarify their management policy and value
creation framework, to use their strengths and corporate resources effectively, to be conscious of relationships between their business activities and social issues, and toprovide the value expected by society.
The Sumitomo Corporation Groups business activities extend to a wide range of industries around the world. In our integrated trading business in cooperation with many
stakeholders, we are faced with various social issues. We are motivated and committed to addressing these issues to ensure the sustainable growth of society. We strive
to achieve sustainable growth along with society by providing various value through our business activities.

Achievement of “sustainable societiesˮ

Pursuit of “sustainable growth of the companyˮ

• Environmental issues threatening thesustainability of societies• Clarification of our management policy
and value creation framework• Universal social issues transcending
countries, regions and industries• Recognition of the relationship withsocial issues (opportunities/risks)• Higher-than-ever expectations forcorporate social responsibility• Effective use of our company's
strengths and resources

Globally-oriented business in a wide range of fields; responsibility to contribute to
the achievement of sustainable societies
Efforts to address social issues through our business to achieve sustainable growthwith society

2

Sustainability of Sumitomo
Corporation Group

Environment

SocialGovernance

ESG quantitative data

Third-party assessment

Business Philosophy and Corporate Mission Statement
Our business was founded on Sumitomo’s Business Philosophy and Sumitomo Corporation Groups Management Principles. The year 2019 will mark the 100th
anniversary of our company. Since our foundation, we have always placed importance on trust and certainty based on the spirit of “Benefit for self and others, private andpublic interests are one and the sameˮ and in accordance with Sumitomo’s Business Philosophy and Sumitomo Corporation Group's Management Principles. To deal withthe change of the times, we have accordingly changed our business through our constant effort to stay a step ahead and create new value so that we can contributebroadly to society. Sumitomo’s Business Philosophy and Sumitomo Corporation Group's Management Principles have supported our growth over the last 100 years andwill ensure sustainable growth and help create long-term corporate value over the next 50 and 100 years.
Sumitomo’s Business Philosophy

Corporate Mission Statement

Sumitomo’s Business Philosophy has been refined throughmany generations based on the Founder’s Precepts“Monjuin Shiigaki,” which Masatomo Sumitomo (1585-1652),
the founder of the Sumitomo family, wrote and handed
on to describe how a merchant should conduct business.
The basic points of Sumitomo’s Business Philosophy havebeen passed on in the form of the two articles of theBusiness Principles.
Article 1 emphasizes the utmost importance of integrity,
while Article 2 advocates the importance of having anenterprising spirit to generate profits quickly and faithfullyFounder’s Precepts of Sumitomo(Source: Sumitomo Historical Archives)
while adapting to a changing society, and renovating
business operations while avoiding the pursuit of easy gains or acting carelessly.
Sumitomo’s Business Philosophy, which has been passed on since the Founder’s Precepts
was written, still serves as the timeless principles Sumitomo Group companies follow in theiractivities.
There are also several other credos that are contained in Sumitomo’s Business Philosophy.
One example is: “Benefit for self and others, private and public interests are one and thesame.” To put it another way, Sumitomo’s business, while benefiting Sumitomo, must also
benefit the nation and benefit society. This represents the corporate vision that the
Sumitomo Corporation Group as a whole must pursue at all times.
The second credo is “Grand Design.” This derives from copper mine management,
Sumitomo's core business in its early days, which required long-term vision and continuous
effort. This attitude of viewing business from a broad and long-term perspective and working
for the benefit of the entire nation and society based on foresight of the future has been
inherited from preceding Company operators.
The third credo is “People are our most important asset.” The cultivation and development of
human resources has always been our most important concern regardless of the times.
Sumitomo’s Business Philosophy thus stresses the need for an enterprising spirit to stay a
step ahead in dealing with change, while ascribing importance to maintaining integrity andsound management, avoiding easy gains, and working for the public interest, without being
misled by short-term immediate changes. This philosophy has continuously formed the basisof Sumitomo Corporation Group‘s business for more than 400 years.

Sumitomo Corporation Group’s Management Principles are a contemporary translation of
Sumitomo’s Business Philosophy, which was devised 400 years ago, using simplified
language and a clear structure, and rewritten from a more global perspective. The Activity
Guidelines provide guidance on how each company as well as their executives andemployees should behave as they conduct daily business activities to realize theManagement Principles.
As declared in the Management Principles,
our corporate mission is to support ourshareholders, clients, local communities,
employees, and everyone else around theworld in their endeavors to achieve
economic and spiritual prosperity andrealize their dreams through our soundbusiness activities. We also maintain—
throughout our business practices—aunique management style that respects
the personality of each Individual andplaces prime importance on integrity andsound management, which represent theessence of Sumitomo’s
Business
Philosophy, while cherishing a corporate
culture that allows each employee to takethe initiative and demonstrate creativity
that is conductive to continuous reform
and innovation.
By sharing the values presented in theManagement Principles and the Activity
Guidelines across the Group to materialize
them in specific business activities, we aim
to be a global organization that constantly
stays a step ahead in dealing with change,
creates new value, and contributes
broadly to society.

3

Sustainability of Sumitomo
Corporation Group

Environment

SocialGovernance

ESG quantitative data

Third-party assessment

Material Issues
Sumitomo Corporation Groups Material Issues
In April 2017, Sumitomo Corporation Group identified its material issues that illustrate therelationships between its business activities and society. These material issues are importantelements that we should refer to in making decisions on growth strategies and the
management of individual business lines.

Leveraging our trust-based relationships with customers and partners across the globe and utilizing our business expertise, we willsecure our growth and address social issues simultaneously by fulfilling our Corporate Mission: “To achieve prosperity and realize
dreams through sound business activities.”
Achieving Harmony with the Global Environment
To realize recycling-oriented society and mitigate climate change, we areworking to establish frameworks for the efficient use of resources andstable supply of renewable energy. In doing so, we will achieve growth inharmony with the global environment.

Contributing to the Development of Local Communities and Industries
We steadily procure and provide goods and services to meet the needs ofpeople in various countries and regions and contribute to developing
industrial platforms. Through these means, we will create a virtuous cycle inwhich we can grow and develop together with local communities.

Establishing a Foundation for Comfortable and Enriching Lifestyles
We strive to realize more convenient and comfortable lifestyles by
providing goods and services for daily use while also responding toneeds for high-quality lifestyles in order to support the physical andmental health of people around the world.

Providing Diverse “Accessibility”
We provide diverse accessibility to open up the possibility of creating newvalue. To this end, we will improve mobility for safe and efficient flow ofpeople and goods, and expand the network connecting information andfinance.

As a prerequisite for resolving the issues listed above, we strive to maintain and enhance our Management Style that places prime
importance on integrity and sound management with utmost respect for the individual and our Corporate Culture full of vitality andconducive to innovation.
Developing Human Resources and Promoting Diversity
In order to create new value and innovation by allowing our diverse
personnel to fully exercise their abilities in a variety of fields, we will
promote the development and empowerment of human resources, which
represent our most important management resources.

Enhancing Governance
We will enhance our ability to draft and implement strategies for achieving
sustainable growth and to provide appropriate supervision of these strategies,
all while maintaining transparency. In this manner, we will improve
management efficiency and maintain sound management.

4

Sustainability of Sumitomo
Corporation Group

Environment

SocialGovernance

ESG quantitative data

Third-party assessment

Material Issues*1:
An abbreviation of Sustainable
Development Goals. Comprising 17
goals
encompassing
globalchallenges to be achieved by 2030.
These goals were embraced by all
193 UN member states at a UN
General Assembly held in 2015.

Identification Process
We set up an internal, cross-organizational taskforce and identified Six MaterialIssues to Achieve Sustainable Growth with Society, based on Sumitomo’s
Business Philosophy and the Sumitomo Corporation Group’s Corporate Mission
Statement.

*2:
A framework published by theInternational Integrated Reporting
Council (IIRC) aimed at theevolution of corporate reporting.
The framework is designed to help
companies to provide information(financial and non-financial) that is
important to explaining their ability
to create value over the long termin a clear, simple, and comparable
manner.

■Investigation
While referring to the SDGs*1 adopted by the United Nations (UN) in 2015 and the internationalguidelines such as the IIRC’s International Integrated Reporting Framework*2, we exchanged opinionswith institutional investors and experts. We then formulated the methodology for identifying material
issues needing to be addressed in order for us to achieve sustainable growth with society.

■Classification of Our Business and Social Issues and Selection of Material Issues
Based on the SDGs which considered to comprehensively cover numerous social issues , eachbusiness unit compiled a list of the social issues they are currently addressing through their businessand those they hope to address in the future.
Referencing these lists and considering Sumitomo’s Business Philosophy and the Sumitomo
Corporation Group’s Corporate Mission Statement, we contemplated our current strengths and theroles we should assume in the future. We then selected social issues that we regard as important andthat need to be addressed with high priority as well as our challenges to be overcome in creating
solutions.

■Exchanges of Opinion with Internal and External Stakeholders

Future Initiatives
We have defined the Six Material Issues to Achieve Sustainable Growth withSociety as an important factor in developing business strategies and in thedecision-making process for individual businesses. Going forward, we will pursue
sustainable growth by resolving these issues through our business activities.
At the same time, we will advance the dialogue with our stakeholders to maintainan in-depth understanding of society’s expectations for us and of our strengths.
We will revise the material issues flexibly in response to changes in society.

We exchanged opinions with outside experts such as international organizations and institutional
investors, and conducted surveys covering all officers and employees to collect their opinions, so as toclarify the interests and expectations of internal and external stakeholders with regard to our corporate
activities, which were incorporated into discussions of how best to classify and describe the issues that
had been identified.

■Identification
The selected issues and their importance were reviewed by the CSR Committee. With
deliberation and approval by the Management Council and the Board of Directors, the Six
Material Issues to Achieve Sustainable Growth with Society were finalized.

5

Sustainability of Sumitomo
Corporation Group

Environment

SocialGovernance

ESG quantitative data

Third-party assessment

Material Issues
Material issues initiatives
Sumitomo Corporation Groups material issues
illustrate, in an easy to understand way, how thegroup addresses social issues through its businessactivities in accordance with its Management
Principles so as to contribute to achieving
sustainable societies. These material issues show
stakeholders and our company's executives andemployees how the group applies the Management
Principles. The entire group is involved inaddressing these issues.
Material issues initiatives include: implementation of
the Management Principles in individual businessactivities and the provision of the value necessary
in our society from a long-term perspective; carefulmanagement of impacts of the entire group'sbusiness activities on society and the environment;
and a grasp of business opportunities in the longterm trends of social issues to strategically develop
business projects that contribute to addressing
social issues.
We believe these initiatives help enhance the longterm business growth and stability of our company,
constantly improve our group's value, receive highevaluations and trust from various stakeholders,
and raise employees' motivation.

Important factor on decision-making process＝ making decisions on strategies and individual investments base on the trend of
long-term social issues and attitude towards provision of value required by society

Practice on Management
Principles through each business

Provision of Value, Governance,
and Risk Control respond tolong-term social trend

Control of Impacts to Social /Environmental Issues on BusinessSocial/environmental risk
management on our groupand supply chain

Strategic Development of Businessfor Solving Social Issues

Allocation of resources toemerging fields / Creationof next-generation business

Increase in stability and growth potential
on management and corporate value in the long-term
Better recognition from shareholders and stakeholders
Increase in employees’ motivation

6

Sustainability of Sumitomo
Corporation Group

Environment

SocialGovernance

ESG quantitative data

Third-party assessment

Value Creation Model
Sumitomo Corporation Group’s value creation model is stood on its management base, which comprise global networks of numerous group companies and offices,business relations in diverse industries, human resources and business know-how generated through such networks and relations, as well as the strong trust and stablefinancial basis which we have developed over many years. Sumitomo’s business philosophy and management principles are placed at the core of our value creation
model. Along these lines, we will train and utilize our human resources, who are our most important management resource, and combine our management base to create
diverse businesses and ensure governance over the entire scope of our activities. In the current movement of innovation and social issues, we will stay a step ahead in
dealing with changes. Through our activities of upgrading our existing businesses and developing new frontiers, we will provide new values and contribute to the creationof a sustainable society. This is exactly how Sumitomo Corporation Group creates values.

7

Sustainability of Sumitomo
Corporation Group

Environment

SocialGovernance

ESG quantitative data

Third-party assessment

Medium-Term Management Plan
In May 2018, we formulated “Medium-Term Management Plan 2020” to cover the three-year period from fiscal 2018 to 2020. The plan was designed in response to abusiness environment in which the structure of industry is undergoing major change, with the rapid advance of IoT, AI, and other technologies resulting in the accelerationof the integration and globalization of all industries. The plan calls for ongoing initiatives to enhance the management bases, while placing the main focus on promotion of
growth strategies, as we continue with “unceasing challenge for new value creation.”
More specifically, we focus our efforts on the following three strategies to drive our growth strategies: “increase the value of existing businessesˮ to pursue the maximum
potential of each business and respond promptly to changes in the business environment; “create next-generation businessesˮ by identifying emerging fields inanticipation of social changes and issues and create systems for the development of value-creating businesses; and “leverage business platformsˮ to aim for organic andmultilevel collaboration between our businesses on the strength of our rich variety of contacts with different industries, societies, and regions. We also identified threefields -- healthcare, social infrastructure, and technology x innovation -- that are expected to grow significantly despite the accelerating change in the businessenvironment, based on megatrends and our material issues. Through the creation of new next-generation business opportunities in these fields, we will build new revenue
streams from a long-term perspective with the aim of improving our corporate value not only during the three-year period of the current Medium-Term Management Planbut over next 10 and 20 years.
The Medium-Term Management Plan 2020 also calls for enhancing the management base to support growth strategies. Specific efforts include the reinforcement ofsupervisory functions of the Board of Directors and the enhancement of Group governance through internal control as well as creation of a corporate culture where
diverse human resources and individuality can be effectively used.
Creating the next generation businesses：
Key allocation of management resources to three emerging fields
Emerging fields

Megatrends/Social issues

Priorities

Technology x
Innovation



Revolution in industry structure
and business models due tothe shift to ICT and thedisappearance of borders for
all industries



Aging of society/Inflation of
medical expenses
Technology innovation, such as
IoT and AI
Changes in industry structurePopulation growth/Advance ofurbanization
Shift to private-sector
outsourcing
Climate Change Issues



HealthcareSocial infrastructure












Revolution in business models and upgrading ofbusiness by the acceleration of digitaltransformation (DX)
Promoting R&D activities as strategic move to buildnext-generation revenue stream (Set investment
fund of ¥20 billion for next-generation businesses)
Development of new businesses that lead to greater
efficiency in medical expenses
Expansion of digital health business utilizing cuttingedge technology
Entering market for medical infrastructure
installations in emerging countries
Entering market for infrastructure installations, andurban development/Smart City project
Reinforcing eco-friendly businesses utilizing newtechnology (Next-generation energy managementbusiness, storage batteries, hydrogen business etc.)

Integrated Report 2018 「Chapter2 Vision and Strategy」

8

Sustainability of Sumitomo
Corporation Group

Environment

SocialGovernance

ESG quantitative data

Third-party assessment

How to understand sustainability / sustainability promotion system
Structure for Promoting Sustainability
Corporate sustainability in the Sumitomo Corporation Group is promoted through a process of coordination between the Corporate Sustainability Department, which
undertakes the planning of measures to promote sustainability, the sustainability managers and staff of each Business Unit’s Planning & Coordination Department, andthe sustainability staff of domestic and overseas regional organizations. In this process, we take into consideration the social and environmental issues and the needs of
our wide range of stakeholders.
The Corporate Sustainability Committee acts as an advisory body to the Management Council and discusses important policies, measures, and initiatives relating to thepromotion of sustainability.

9

Sustainability of Sumitomo
Corporation Group

Environment

SocialGovernance

ESG quantitative data

Third-party assessment

How to understand sustainability / sustainability promotion system
UN Global Compact
The Global Compact (GC) was proposed by the former
UN Secretary General Kofi Annan at the W orld
Economic Forum (in Davos) in 1999 and officiallylaunched in 2000 at the UN Headquarters in New York.
The GC is an initiative aimed at realizing the sustainablegrowth of the global economy through the voluntary
participation of businesses in a worldwide network. The
UN invites companies and organizations from around theworld to join in the GC and currently has over 13,000
companies and organizations from approximately 160
countries participating. The GC has compiled 10
universal principles recognized by the international community based oninternational agreements in the areas of human rights, labour standards,
environment and anti-corruption. Participating companies adopt the 10 principles
into their business operations and strategies and are expected to assume
responsible and creative leadership as a good corporate citizen for the purpose ofachieving sustainable growth.

The Global Compact's 10 Principles
Human Rights
1.

Businesses should support and respect the protection of internationally proclaimed
human rights; and2.

make sure that they are not complicit in human rights abuses.

Labour Standards
3.

Businesses should uphold the freedom of association and the effective recognitionof the right to collective bargaining;4.

the elimination of all forms of forced and compulsory labour;5.

the effective abolition of child labour; andIn March 2009, the Sumitomo Corporation Group signed the UN Global Compact
and declared its support for the 10 principles, shares the same values as our
Corporate Mission Statement. We are raising the awareness of our officers andemployees around the world regarding their purpose and making efforts to further
increasing our corporate value by constantly seeking out areas of our businessactivities that can be improved in light of the values advocated by the 10 principles.

6.

the elimination of discrimination in respect of employment and occupation.

We are also actively participating in the activities of Japan’s local network, Global
Compact Network Japan, as one of the board member companies. In fiscal 2017,
we took part in working groups on: environmental management related to climatechange, biodiversity and other environmental issues; reporting; human rights due
diligence; SDGs; and SRI/ESG. Through this involvement, we acquire information
on recent global trends in these areas, learn of examples of superior initiatives, andare provided insight from specialists. This knowledge is utilized to help theCompany promote Sustainability.

Environment
7.

Businesses should support a precautionary approach to environmental challenges;

8.

undertake initiatives to promote greater environmental responsibility; and9.

encourage the development and diffusion of environmentally friendly technologies.

Anti-Corruption
10. Businesses should work against corruption in all its forms, including extortion andbribery.

10

Sustainability of Sumitomo
Corporation Group

Environment

SocialGovernance

ESG quantitative data

Third-party assessment

Social Issues and the Groups Business
At present, international organizations, national governments, local governments, private enterprises, and other groups and individuals throughout the world arecooperating to achieve common goals for sustainable development: The Sustainable Development Goals (SDGs). The SDGs are becoming the common language forpeople who are addressing many social issues to achieve sustainable societies. Our Group will contribute to achieving various SDGs and realizing of a sustainable society
through addressing material issues in our diverse business activities covering different countries and industries.
Major risks(enhancement of competitiveness)

Major opportunities(expansion of earning opportunities)

Climate change

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

Water resources

Continuity risks for business involving production processes in Promotion of water supply and sewerage/freshwater generationwater shortage areas, etc.
business to contribute to addressing water issues around theworld, etc.
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 bymaintaining and protecting ecosystems, improvement of
employee motivation, etc.

Environmental
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 use

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

Expansion of forest management business by securing andusing 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.

Labor practices

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

Improvement of labor productivity and employee motivation byachieving workplaces where employees feel fulfilled in theirwork, etc.

Occupational safety
and health

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 resource
development

Hollowing out of talented human resources and decreased
Human resources retention, increase in employee motivation,
motivation of employees due to lack of appropriate measures, etc. and opportunities to enter new business areas through providing
appropriate human resource development programs, etc.

Supply chains

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.

Healthcare
Local infrastructure/community planning

Material Issues

Promotion of renewable energy business and environmentallyconscious business, etc.

Biodiversity

Industrial/technologica Deterioration of existing business and hollowing out of humanl innovation
resources as a result of the shift to ICT, the disappearance ofborders for all industries, and complexity, etc.

SDGs

Development and stability of business by resilient value chains,etc.
Enhancement of existing business and creation of new
business models 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
mainly in emerging countries, etc.

* This book consists of the items above based on the expectations of a representative ESG rating organization for our company.

11

Sustainability of Sumitomo
Corporation Group

Environment

SocialGovernance

ESG quantitative data

Third-party assessment

Social Issues and the Groups BusinessBusiness Unit

Metal Products

Transportation & Construction
Systems

Infrastructure

Media & Digital

Living Related & Real Estate

Mineral Resources, Energy,
Chemical & Electronics©BOEING©AIRBUS

Steel service center business(steel sheet & other steel products field)

Aircraft leasing business(lease, ship & aerospace field)

Urban railway transit(social infrastructure field)

Cable TV business (media field)

Supermarket business(lifestyle & retail field)

Silver, zinc, and lead mining
business (mineral resources field)

Energy equipment & services
business (tubular products field)

Mobility services business(automotive field)

Power generation business(global power infrastructure field)

Corporate venture capitalbusiness (digital business field)

Fruit and vegetable wholesaling
business(food & agriculture field)

FPSO owning and charteringbusiness (energy field)

Aluminum smelting business(nonferrous products & metals field)

Construction equipment sales andrental businesses (construction& mining equipment field)

Overseas industrial park business(logistics infrastructure field)

Telecommunication business(smart communications platform field)

Real estate business(materials, supplies & real estate field)

Veterinary medicine business(chemicals field)

Business examples

P19

Climate change

P18,19Water resources

P20,21

Biodiversity

P24

P19
P21
P24

Environmental pollution
P27

Resource use
P29

Human rights
Labor practices
Occupational safety
and health
Human resource
development

P23
P25,26

P29

P43

P43

P40

P49

P49

P51

P52

P47

Supply chains
Industrial/technologicalinnovation
Healthcare
Local infrastructure/
P53
community planning* This book consists of the items above based on the expectations of a representative ESG rating organization for our company.

P50

P53

12

Sustainability of Sumitomo
Corporation Group

Environment

SocialGovernance

ESG quantitative data

Third-party assessment

Environmental Management
Policy and concept
Throughout its 400-year history, theSumitomo Group has pursued industrial
developmentin
harmony
with
local
communities and the natural environment.
Based on this foundation, the Sumitomo
Corporation Group pursues business activities
in such a way as to promote environmental
conservation. Recognizing that various
initiatives such as creating a low-carbon
society that alleviates climate change,
preserving biodiversity and the global
environment, using energy, water andresources sustainably, preventing pollution
and controlling waste emissions are the mostimportant and long-term concerns that allindividuals 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
the environmental impacts of their businessactivities as well as to improving theenvironment through their business activities,
based on the ISO 14001 environment
management system.

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

II. Basic Guidelines
In pursuing its diversified business activities both within Japan and overseas, the Sumitomo Corporation Group shall comply with thefollowing guidelines, and, through cooperation between its Group companies, work to achieve the aims of its environmental Basic
Policy.
1.

Basic stance with regard to the environment:
To place great importance on protecting the global environment as a good corporate citizen in accordance with 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 andtargets 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.

13

Sustainability of Sumitomo
Corporation Group

Environment

SocialGovernance

ESG quantitative data

Third-party assessment

Environmental Management
SystemEnvironmental Management Structure
The Sumitomo Corporation Group has established, based on the environmental
policy, the environmental management structure with the Corporate Sustainability
Committee as the center of the structure. As for the ISO 14001 environmental
management system (EMS), since Tokyo and Osaka offices of Sumitomo
Corporation acquired the Group's first ISO 14001 certification in June 1999, thecoverage of the system has been extended continuously. As of September 2018, a
total of 19,300 employees in domestic locations of Sumitomo Corporation andcertain group companies participates in these environmental management
activities.

Targets and Results
Taking account of the results of the 2℃ target set forth by the Paris Agreement,
Sumitomo Corporation sets long-term goals for electricity consumption, water
consumption and waste emissions and promotes environmental improvement
activities respectively. The targets converted from long-term goals, results of
FY2017, targets of FY2018 are as follows.
Index

Targetsof FY2017

Resultsof FY2017

Targetsof FY2018

Intensity(MWh/m2)

0.1037

0.09760.1026

Consumption
(MWh)

7,213

6,797

7,149

CO2 Emissions(Scope1, cope2)

Total (t-CO2)

4,431

4,310

4,484

Waste Emissions

Intensity(t/employee)

0.102

0.043

0.101

Emissions (t)

406

170

401

Intensity(m3/employee)

6.46

4.88

6.39

Consumption(m3)

25,69819,41525,410Electricity
Consumption

Water
Consumption

ISO14001 Integrated Certification Group Companies(Sumitomo Corporation and 26 group companies as of September)Group Companies with ISO 14001 Certified※The total amount of Electricity Consumption, Waste Emissions, and Water Consumption is calculated
from the intensity of each indicator.
※The target of CO2 emissions is the total value of Scope1 and Scope2 calculated from target reduction
in electricity consumption.
※Scope：Head office, regional offices, branches and sub-branches in Japan(Group companies as of September)

14

Sustainability of Sumitomo
Corporation Group

Environment

SocialGovernance

ESG quantitative data

Third-party assessment

Environmental Management
Targets
Sumitomo Corporation Group promotes
activities that are beneficial to theenvironmental improvement and reduce
environmental negative impact.
Further, as the whole Sumitomo
Corporation Group, we follow to a policy
stated in Medium-Term Management
Plan 2020 that "we recognize climatechange related issues are important sothat we contribute to solve those issues
through our business activities as well as
to reduce greenhouse gas emissions."
At Sumitomo Corporation, Eco Leader
identifies the environmental aspects ofeach department and evaluates theirimpacts, and identifies risks andopportunities
considering
relevant
compliance obligations. Based on the
results,
EMS
Promoters
specifysignificant environmental aspects, risks
and opportunities for each Business Unit
andthe
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
Comply with environmental
laws and regulations

Pursue environmentallysound projects

Manage and reduce
environmental burden

Promote environmental
education andcommunication related to

FY2017 Environmental Achievements• Implement continuing education programon the Waste Disposal and Public
Cleansing Act and other environmentrelated laws/regulations• Conduct on-site checks of waste disposal
service providers and encourage thesharing of information within the Group• Seminars featuring outside instructors and workshops covering on-sitechecks at industrial waste disposal facilities (for the 11th consecutive
year)• Information was shared within the Group via the environment
management system• Expand renewable energy businesses• Promote businesses that help create arecycling-oriented society• Promote other businesses to reduce
environmental burden• Promoted renewable energy businesses both in Japan and abroad:participated in an offshore wind power generation project in Belgium
and UK, implemented the solar power project in Minamisoma City in
Fukushima Prefecture, and constructed wood biomass power plant in
Sakata City in Yamagata Prefecture, and Handa City in Aichi Prefecture,Japan• Promoted businesses to create a recycling-oriented society, to reduce
environmental burden: verification of a large –scale power storage
system utilizing reused EV batteries in Satsumasendai City in
Kagoshima Prefecture, Promoted ultra super-critical pressure coal
thermal power generation in Southeast Asia, Demonstration tests of theelectric bus service using regenerative power occurred from trains in
Saitama city in Saitama Prefecture, etc.

• Measure and reduce electric power/gas
consumption and waste generation at allsites in Japan• Measure and reduce the environmental
burden/impact of business activities (bypromoting energy conservation in logistics,
increasing the number of sites compilingenvironmental performance data, etc.)• Assess environmental impact in relevant
supply chains and work to reduce suchimpact• Measured electric power/gas/water consumption and waste generation
at all sites in Japan, and compared to the previous year, we reduced
7% of electricity consumption per m2, 12% of water consumption per
employee, 47% of waste emissions per employee.
• We reduced 4% of the energy consumption due to domestic logistics
per 1 million ton kilometers of transportation amount compared to theprevious year.
• Expanded the number of sites compiling environmental data(percentage of business companies compiling electric power data
100%)
• Conducted environment assessments on mine development and mining
operation businesses abroad and on construction and real estatebusinesses in Japan, as well as soil pollution surveys for construction
and real estate businesses• Hold events, including awareness-raisingseminars
relatedtoenvironmental
conservation• Promote effective use of environmental
management systems• Continued to hold seminars on environment-related laws/ordinances• Hold seminar on climate change measures• Conducted e-learning environmental course which was completed by
100% of our employees

environmental issues

15

Sustainability of Sumitomo
Corporation Group

Environment

SocialGovernance

ESG quantitative data

Third-party assessment

Environmental Management
Activities
Internal Environmental Audit

Environmental Educational Activities

Sumitomo Corporation conducts internal environmental audits on an annual basis
to ensure that the environmental management system is functioning properly. In
2017 we carried out internal environmental audits in 273 domestic departments,
which of Sumitomo Corporation and our ISO 14001 integrated certification groupcompanies, with specific emphasis on

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 seminars
on environmental laws and regulations as well as global environmental issues
given by outside experts.

(1)
(2)
(3)
(4)

proper establishment of environmental targets,management of progress in implementing the environmental action plan,evaluation of compliance with legal requirements andimplementation and enhancement of environmental training.

Summary

As a result of the audits, category-A and category-B nonconformity, as stipulated
in the Internal Environmental Audit Administrative Rules, were not identified.

Training on the
ISO 14001
environmental
management
system

The management principles,environmental contribution activities andthe processes of an environmental
management system in accordance with
the ISO 14001 international standard.

2017(twice)210

External Audit

Training forinternal
environmental
auditsThe basics and processes of internal
environmental audits, through exercises,
to be able to conduct audits effectively.

October 2017
(twice)68

Seminars on
industrial waste
disposal and onsite checks ofwaste disposal
serviceproviders

Practical knowledge, including
responsibilities of industrial waste
generators, contract criteria and proper
disposal methods, and, at the on-sitechecks, the key points in selecting
proper providers.

October toNovember2017(three times)

200

Seminars on
environmental
laws andregulations

The latest trends in environmental laws
and regulations, basic knowledge onthese, and points to note to comply withthe laws and regulations.

May 2017(twice)152

Basicenvironmental
education (elearning)

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

July 2017 to
February2018

679

In July 2017, 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

Dates

Number ofparticipants

Theme

16

Sustainability of Sumitomo
Corporation Group

Environment

SocialGovernance

ESG quantitative data

Third-party assessment

Climate change
Policy and concept
The impact of climate change, which is becoming increasingly serious year by
year, is an environmental issue that significantly affects social, environmental
and corporate activities beyond generations on a global scale. Examples of its
impact include weather disasters, the impact on water resources and agriculture,changes in ecosystems, and the impact on human health. The Sumitomo
Corporation Group, operating business in a wide range of fields globally,recognizes these outcomes as serious risks. To mitigate their impact andbalance our growth and sustainable development of society, we place great
importance on mitigating climate change and adapting to its impact. In 2017, we
identified the six material issues to achieve sustainable growth with society,including “achieving harmony with the global environment” that clarifies ourcommitment to mitigating climate change.

Basic policyWe recognize climate change as an important social issue and contributeto addressing it through our business activities.
We simultaneously address two key issues: controlling greenhouse gas
emissions and ensuring a stable energy supply.
In individual business activities, for example, the power generation business, weare shifting emphasis in the power generation asset portfolio to gas and renewableenergy over the medium- to long-term, with the aim of reducing the share of coalfrom 50% to 30% and increasing the share of renewable energy from 20% to 30%
by around 2035 (figures based on net generation capacity). In the upstream
resources business, we are aiming to build an upstream resources portfolio thatwill contribute to stable energy supply based on long-term demand forecasts. In
other fields, we will strengthen our efforts on new technologies and businessmodels in areas such as energy management and storage battery/hydrogenbusiness so as to contribute to addressing social issues.
Information disclosure regarding climate change
We supports the recommendations of theTask Force on Climate-related Financial
Disclosures (TCFD) established by the Financial Stability Board (FSB), and further
expand our information disclosure according to the recommendations. Also wehave been graded as B (management level) at the CDP’s 2017 climate change
questionnaire.
Participation in initiatives
As a member of the Subcommittee on Global Environment of the Committee on
Environment and Safety of Keidanren (Japan Business Federation), our company
addresses global warming and climate change and helps design environmental
policies that will not harm the economy. We also participate in the Global
Environment Committee of Japan Foreign Trade Council, Inc. to discuss how torealize a low-carbon society and a recycling society, and to compliance withenvironment-related laws and regulations.

17

Sustainability of Sumitomo
Corporation Group

Environment

SocialGovernance

ESG quantitative data

Third-party assessment

Climate change
Activities
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 mitigatingclimate change.
Fuel

Solar power

Power plant

Country

Generation
capacity（MW）

Osaka Hikarinomori Project

Japan

0.5

Solar Power Saijo Co., Ltd.

Japan

29.0

Fuel

Offshore wind
powerPower plant

Country

Generation
capacity（MW）

Northwind

Belgium

216.0

Nobelwind

Belgium

165.0

Northwester2

Belgium

219.0

Solar Power Kitakyushu Co., Ltd.

Japan

16.0

Solar Power Tomakomai Co., Ltd.

Japan

15.0

Galloper

UK

336.0

Solar Power Minamisoma/Kashima Co., Ltd.

Japan

60.0

Race Bank

UK

573.3

Solar Power Minamisoma/Haramachi

Japan

32.0

Summit Handa Power Co., Ltd.

Japan

75.0

Summit Sakata Power Co., Ltd.

Japan

50.0

Woody biomass

Wind power

EVM/EVM2

Spain

14.0

Oga Wind Power Plant Co., Ltd.

Japan

28.8

Geothermal
power

PT. Supreme Energy Muara Laboh

Indonesia

80.0

Summit Wind Power Co., Ltd. (Kashima)

Japan

20.0

Hydraulic power

CBK Power Company Limited

Philippines

792.0

Datang Sino-Japanese (Chifeng) New
Energy Co., Ltd.

China

50.0

Stanton Wind Energy LLC

USA

120.0

Shepherds Flat Wind

USA

845.0

Cimarron Ⅱ Wind

USA

131.1

Ironwood Wind

USA

167.9

Dorper WindSouth Africa

100.0

Mesquite Creek Wind

USA

200.6

18

Sustainability of Sumitomo
Corporation Group

Environment

SocialGovernance

ESG quantitative data

Third-party assessment

Climate change
Activities
Other eco-friendly businessTo address climate change issues, we have entered power generation businessusing renewable energy. Our efforts in this regard also include eco-friendly
business using new technology to promote the use of renewable energy and toincrease energy efficiency.

Project

Details

Secondary use oflithium-ion batteries for
EVsPower storage business by recycling lithium-ion batteries used forelectric vehicles (EVs), enabling stable power supply with renewableenergy sources and stable supply of power by power companies andmaintenance of its quality

Introduction of battery
swapping-type electricscooters

We import battery swapping-type electric scooters and swapping
battery charging stations developed by Gogoro, a Taiwanesecompany, to support the achievement of the “eco-island conceptˮ ofIshigaki City, Okinawa.

Next-generation storage
batteries

Intra-city electric bus operation using a next-generation, rapidly
rechargeable storage battery that can collect all regenerative electric
power. With this storage battery, which has high charge/discharge
efficiency, we can expect advantages such as energy saving, powersaving, and reduction in green house gas emissions.

Production of CO2-freehydrogenCO2-free hydrogen can be produced through water electrolysis using
renewable energies such as solar power, wind power, hydropowerand geothermal power. Our aim is to establish a complete CO2-free,
distributed energy system.

CCS（Carbon dioxide
Capture and Storage）

Our company is a shareholder in Japan CCS Co., Ltd. (JCCS). JCCS
is conducting a CCS demonstration project in Tomakomai using CCS
technology that captures CO2 generated from plants and power
plants before being released into the atmosphere and transfers it to ageological stratum suitable for underground storage in a stablemanner over a long period of time.

Business description
Ishigaki Island Gogoro sharing business
Sumitomo Corporation has been engaged in almost all areas of the automotive
industry from manufacturing of and sales and after-sales service for parts andvehicles. As electrification has been rapidly promoted and advanced information
technology is being employed more and more, the automotive industry is now
moving into an unprecedentedly turbulent era. There have been many ongoingdiverse projects particularly in the sharing business. One of the representative
projects in this area is a joint project with Gogoro, a Taiwanese company, in
Ishigaki Island in Okinawa.
The main objective of this project is to contribute to promoting the tourism industry
with less environmental impact. We provide sharing services using Gogoro's
electric scooters mounted with mobile batteries and charging stations for themobile batteries in Ishigaki Island, which is promoting the “eco-island conceptˮ.
The immediate goal is to set up charging facilities in various places in Ishigaki
Island to establish an energy network and provide scooter sharing services. Our
aim in the future is to apply this infrastructure to automobiles, electric powerassisted bicycles or electric appliances other than vehicles. Through this projectusing the latest technology and services, a model for new tourism value andimproved convenience for visitors is being formed.

Smart Scooter of Gogoro, Taiwan and swapping battery charging station

19

Sustainability of Sumitomo
Corporation Group

Environment

SocialGovernance

ESG quantitative data

Third-party assessment

Water resources
Policy and concept
Water is an essential natural resource for companies.
However, due to an increase in water demand as aresult of population growth and economic
development, there will be more and more areas
where water will become scarce. According to theOrganization for Economic Co-operation andDevelopment (OECD), water demand is projected toincrease by 55% between 2000 and 2050 and, in
2050, 240 million people will have no access to cleanwater and 1.4 billion people will be without access tobasic sanitation.
Our Group conducts its business around the world,
including in highly water-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.

Activities
Water business
While water demand is expected to increase on a global basis as a result of population growth, urbanization andindustrialization, the infrastructure 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, waterbusiness that aims to address water issues has started attracting people's attention globally. Increasingawareness that developed countries are responsible for contributing to achieving a safe and hygienic 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 this recognition, we are engaged in various business projects around the world. We
have been expanding our water business from BOOT and BOO business*2 using private-sector capabilities*1,such as water and sewage treatment and seawater desalination, to fully privatized business in promisingmarkets 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 andmultifaceted water business by supplying safe and secure water using Japanese technology and responding to
the demand for reducing social costs by using private capital.
*1 Use of private-sector capabilities: Use of business operation capabilities and funds of the private sector for businessprojects that have traditionally been conducted and financed by the public sector to increase efficiency*2 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 be maintained by the business operator.
Country

Business description

Business
category

BrazilInvestment in BRK Ambiental, a top Brazilian company engaged in water business, holds
assets of 26 business projects of water supply and sewerage and industrial water treatment(our indirect ownership ratio is 14%). We are participating in promising water supply andsewerage business in Brazil.

Water supply
and seweragebusinessUK

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 entered a partnership with Beijing Capital Co., Ltd., a major Chinese water businesscompany and has been involved in sewage treatment business in China. We currently holdassets in Shandong Province and Zhejian Province.

Sewagetreatment
businessOman

We have received an order for a fresh water generation project using private-sector capabilities Fresh waterand funds to desalinate seawater using reverse osmosis membrane technology. Commercial
generation
operation was started in February 2016.
business

20

Sustainability of Sumitomo
Corporation Group

Environment

SocialGovernance

ESG quantitative data

Third-party assessment

Water resources
Activities
Business description

Business description

Water business in Brazil

Water consumption reduction and wastewater recycling at mines

We hold shares in BRK Ambiental, the largest private water supply and seweragecompany in Brazil, with 26 subsidiary companies engaged in water supply andsewerage and industrial water treatment, and have been involved in waterbusiness in Brazil. Due to the low penetration rate of water supply and seweragesystems in Brazil, infrastructure needs to be established and relevant business
operations need to be improved.
The aim of our business project is to provide services of water supply andsewerage and industrial water treatment in about 100 municipalities in 12
provinces with about 17 million residents in Brazil. We contribute to expanding theuse of water supply and sewerage systems and improving their operational quality
in Brazil with high quality Japanese operational know-how and technology.
We use our expertise gained through our extensive experience in water businessand send our knowledgeable employees to operate water business in Brazil. We
consider that the stable provision of water infrastructure contributes to improving
the regional water environment and furthermore developing regional communities.

The San Cristobal mine, which is situated in the highlands 4,000 meters above sea
level surrounded by the Andean mountains in Bolivia, ranks among the world's
largest producers of zinc, lead and silver. Water is an important resource for themine. In this kind of region, the use of water for mining significantly affects theenvironment and local communities. To mitigate such impacts, we define
operational policies for the rational use and responsible management of water withthe aim of reducing water consumption.
Specific efforts include promotion of technological studies to optimize water
consumption in the ore processing process, continuous implementation of
measures to improve efficiency by collecting and recycling wastewater, andregular monitoring of surface and ground water in potentially affected areas toassess the usability in local communities. Based on the study results, we use
hypersaline ground water that does not meet the standards for water for drinking,animal husbandry, irrigation and industry as a major underground water source for
operation. We also reuse mine wastewater, which accounts for 70% of the water
necessary for operation, with the aim of improving the efficiency of operation andachieving harmonious coexistence with local communities.

Sewage treatment plantin Rio Grande do Sul Province

Industrial wastewater treatment plant
operated by BRK Ambiental

San Cristobal silver, zinc and lead mine

A large dump truck carrying ore from a mining site

21

Sustainability of Sumitomo
Corporation Group

Environment

SocialGovernance

ESG quantitative data

Third-party assessment

Biodiversity
Policy and concept
The Sumitomo Corporation Group’s business activities largely depend on
the wealth of Earth’s diverse living organisms as well as from thebiodiversity 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 animportant issue for us. We make efforts to understand how our businessactivities that may have a significant impact on biodiversity depend onsuch biodiversity, as well as what kind of impact such activities have on
biodiversity, in order to minimize their impact on ecosystems andcontribute to ecosystem restoration.

Activities
Business and Biodiversity Offsets Program (BBOP) is an initiative toprepare international standards regarding biodiversity offsets, participatedin by companies, governments, NGOs and other specialists. BBOP isreferred to by the Convention on Biological Diversity and has become
recognized as an international standard regarding biodiversity offsets. We,
as a Japanese company, participate in the program through the
Ambatovy Project in Madagascar. (Refer to the next page.)

BBOP Principles on Biodiversity Offsets

1

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

2

Limits to what can be offset: There are situations where residual impacts cannot be fullycompensated for by a biodiversity offset because of the irreplaceability or vulnerability of thebiodiversity affected.

3

Landscape Context: A biodiversity offset should be designed and implemented in a landscapecontext to achieve the expected measurable conservation outcomes taking into account available
information on the full range of biological, social and cultural values of 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 can reasonably be expected to result in no net loss andpreferably 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 to biodiversity to other locations.

6

Stakeholder participation: In areas affected by the project and by the biodiversity offset, theeffective participation of stakeholders should be ensured in decision-making about biodiversity
offsets, including their evaluation, selection, design, implementation and monitoring.

7

Equity: A biodiversity offset should be designed and implemented in an equitable manner, whichmeans 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 customaryarrangements. Special consideration should be given to respecting both internationally andnationally recognised rights of indigenous peoples and local communities.

8Long-term outcomes: The design and implementation of a biodiversity offset should be based onan adaptive management approach, incorporating monitoring and evaluation, with the objective ofsecuring outcomes that last at least as long as the project’s impacts and preferably in perpetuity.

9

Transparency: The design and implementation of a biodiversity offset, and communication of its
results to the public, should be undertaken in a transparent and timely manner.

10

Science and traditional knowledge: The design and implementation of a biodiversity offset should
be a documented process informed by sound science, including an appropriate consideration of
traditional knowledge.

22Sustainability of Sumitomo
Corporation Group

Environment

SocialGovernance

ESG quantitative data

Third-party assessment

Biodiversity
Activities
Business description
Ambatovy Project contributing to sustainable development in Madagascar
One of the examples of collaboration between BBOP and Japanese companies in
implementing biodiversity offsets is a nickel mine development project in Ambatovy
in Madagascar in which we have made a capital participation. This is the
Ambatovy Project in Madagascar, one of the largest-scale mine development
projects in the world, which has been developed since 2007 in preparation forincreasing demand for nickel, cobalt and other metals.
In the Ambatovy Project, many new facilities, such as mining sites, refinery plants
and pipelines, need to be 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 speciesof endangered animals are living. We give careful consideration to these natural
habitats in developing and operating the project. In developing and implementing
plans for the project, special emphasis is placed on environmental management incompliance with not only Madagascar national laws but also various guidelines,
such as the World Bank safeguard policy, the International Financial Corporation's(IFC) Performance Standards, the World Health Organization (WHO) standards,
and the Equator Principles.
In the project, rigorous measures have been applied to protect the environment,
including efforts to maintain biodiversity, in compliance with the aforementioned
and various other standards. For example, in developing the mining area, wecreated a buffer zone of about 4,900 hectares around the mining site of about
1,800 hectares to ensure protection of wild animals. When trees are cut down todevelop 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 ecosystemsurveys 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 ofsuch species to a sanctuary and use of a fish farming system.

After starting the construction of pipelines, habitats of endangered animals were
found on the routes where the construction was planned. In response, we changed
24 routes in total to bypass these habitats. We are also promoting a large-scalebiodiversity offset program under the “no net loss, net gainˮ concept. This is anapproach to mitigate impacts of the development on ecosystems by restoring or
creating another ecosystem. Specific measures include the conservation of a forest
area of 6,800 hectares in the Ankerana area, which has an ecosystem similar to thatof the development site of the project. In an attempt to offset the net loss of
biodiversity, we are implementing measures to protect four conservation areas ofmore than 14,000 hectares in total, equivalent to about nine times the affected areas,such as protection of areas near the mine site, tree replanting after the installation ofpipelines, and tree replanting on the mine site after the closure of the mine.

Coquerel's Sifaka (Propithecus coquereli), endangered species

Diademed sifaka (Propithecus diadema), critically endangered species Golden Mantella (Mantella aurantiaca), critically endangered species

23

Sustainability of Sumitomo
Corporation Group

Environment

SocialGovernance

ESG quantitative data

Third-party assessment

Biodiversity
Activities
Business description

Business description

Business description

Bird Friendly® Coffee

Bird-strike prevention in wind power generation

Sumitomo Corporation Group has imported andsupplied Bird Friendly®-certified coffee (BF-certified
coffee®) since 2004 as part of our biodiversity-friendly
activities, which also ensure stable income for farmers.
Since fiscal 2014, SC Foods Co., Ltd. started dealingin BF-certified coffee®. BF-certified coffee® is grownunder the shade of trees that is similar to that of anatural forest to conserve the environment andprovide migratory birds a place to rest. The BF
certification was created by the Smithsonian Migratory
Bird Center (SMBC). As of October 2018, 46 farms
and agricultural cooperation in 12 countries* arecertified and part of the proceeds are used for
SMBC's research, surveys and conservation activities.

Dorper Wind Farm generates electricity using wind ina mountainous area of about 130 km2 in Eastern
Cape, South Africa. In the Doper wind power
generation project, measures to prevent bird strikes
are implemented.
Windmills are installed in pastures and bird strikes arecaused by birds that flock to feed on the carcasses of
livestock and other animals. We therefore ensure to
remove animal carcasses found in the power plant.
We also hire local residents to visually confirm if there
is any endangered bird species circling around thewindmills and, if detected, to send an emergency
notice to stop the operation of the windmills. It is ouraim to achieve a harmonious balance between wild
animal conservation and wind power generation
business.

Protection of sea turtle spawning areas affectedby power plant construction activities
Kpone Combined Cycle Power Plant is expected to
be one of the largest thermal power plants in Ghana
and to supply about 10% of the demand for electricity
in Ghana. It is planned to supply electricity over 20
years after its completion. In this project, we also
place emphasis on maintaining harmonious
coexistence with local communities, such as theprotection of sea turtles that come to the nearby
beach to spawn.
It is considered that various human activities
significantly affect the survival of endangered sea
turtles because they spawn on beaches and for otherreasons. Because some facilities of the power plant
are situated on the beach, we commission an external
specialized agency to constantly monitor the impact of
the facilities on sea turtle spawning. Monitoring results
are reported to the Board of Directors. We also makeother efforts to maintain and protect local ecosystems.

* 12 countries: Ecuador,
Ethiopia, El Salvador,
Guatemala, Colombia,
Thailand, Nicaragua,
Venezuela, Peru, Bolivia,
Honduras, Mexico

Harvest of BF-certified coffee®

Dorper Wind Farm Pty Ltd. in South Africa

A sea turtle on the sandy beach near Kpone Combined Cycle Power Plant

24

Sustainability of Sumitomo
Corporation Group

Environment

SocialGovernance

ESG quantitative data

Third-party assessment

Environmental pollution
Policy and concept

Activities

Sumitomo Corporation Groups business covers awide range of areas around the world. As describedin the Environmental Policy, the Group complies withenvironment-related laws and regulations andcontributes to creating a recycling society. We
consider it important not only to comply with laws,
ordinances and standards to prevent pollution caused
by waste water, sludge, exhaust and other wastes
but also to reduce environmental impact throughwaste reduction, reuse and recycling in order toachieve a sustainable society. We will continue toaddress relevant issues through our businessactivities.

Business description
Air/water pollution prevention in mining projects“Social license to operate” is a term that means togain approval from society to carry out businessactivities. The mining business in particular requires
initiatives to reduce environmental impact arising fromdevelopment
andtofacilitatesustainable
development of local society. In conducting the mining
business, the Sumitomo Corporation Group values
compliance with laws and regulations, as well as theconcept of a social license to operate, and works onrehabilitation at all mining sites where it operates tominimize its impact on the ecosystem and contributeto environmental restoration.
For example, in the San Cristobal Mine in Potosi
Department in Bolivia where dust is easily dispersedby dry, cold and strong wind, air quality is monitored
at particulate matter PM10 observation stations set up
in mining sites, debris storage sites, and lodging
facilities, eight in total. In addition, in a community
area in San Cristobal and the Culpina K observation
station, air quality is measured using a cascade
impactor,which
canmeasureparticulate
concentrations by particle size, for 24 hours every 12days according to US Environmental Protection
Agency (EPA) standards. Measures to prevent dust
and particulate matter from dispersing are also taken,
including vehicle speed limits in operation areas,
installation of sprinklers, and construction of a dome
140 m diameter, the largest in South America. Efforts
are also made to prevent water pollution. In our coalbusiness in Australia, a large amount of water neededin the coal mining process is used in a sustainable
manner. Wastewater after cleaning minerals ismanaged under strict environmental regulations:
Impurities in the wastewater are deposited until thewater quality reaches a certain level; The water after
removing impurities is reused for coal preparation,
prevention of coal dust dispersion, rehabilitation andother purposes.

Huge dome for the purpose of preventing coal dust
dispersion in the San Cristobal Mine

Coal mine in Australia

25

Sustainability of Sumitomo
Corporation Group

Environment

SocialGovernance

ESG quantitative data

Third-party assessment

Environmental pollution
Activities
Business description

Business description

Efforts to reduce environmental impacts
in the agricultural chemical sales businessOur major mission in agrochemical business is toprovide the world's best quality agrochemicals
manufactured by Japanese manufacturers throughout
the world with the aim of contributing to increasing the
productivity of agricultural crops. We have been
expanding our business area to include import andwholesale of agrochemicals in countries to which weare exporting Japanese agrochemicals. We are
currently implementing a business model covering
this expanded business area in more than 30
countries. In some areas, unfortunately, farmers anddistributors inappropriately dispose of emptied plastic
bottlecontainersandaluminumbagsofagrochemicals, which can pollute the environment.
There are also concerns that agrochemical remains insuch containers could lead to an accident andadversely affect the environment. Agro Amazonia
Produtos Agropecuarios Ltda. in Brazil and Summit
Agro Mexico S.A. de C.V. in Mexico involve othercompanies in the industry to make joint efforts tocollect and recycle empty containers of agrochemicals
to promote environmental conservation.
Efforts are also made to reduce the environmental
impacts of agrochemicals themselves, including
investment in Futureco Bioscience S.A., a bioagrochemical manufacturer in Spain, and applicationof integrated pest management (IPM), which does notdepend on agrochemicals alone and has low
environmental impacts.
As an IPM effort, we are spreading the use of acommunication
disruptor(pheromone
agent)
developed by Shin-Etsu Chemical Co., Ltd., which

Compliance with regulations forexhaust emissions from vessels
uses insect's natural sex pheromone. It is harmless to
non-target organisms, and not only reduces the
population of the target pest but is also effective on
pests that enter inside plants and are hard to control.
It can also be expected to reduce the pesticide
resistance of pests. This control method is currently
applied by about 60% of orchards in France. In theEuropean region, we have expanded our sales
territory to include Poland, Bulgaria and Russia since2015. In Russia, Summit Agro LLC, a local distributor,
is recognized as the first company to have introduceda pheromone agent to the country.

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

Investment in a bio-agrochemical manufacturer
in Spain

Use of a pheromone agent

Sumitomo Corporation Group has supplied fuel for
vessels to shipping companies in Japan and abroad
since 1952. The Group annually supplies five million
tons, which account for about 2.5% of the world
demand, the largest of an integrated trading company.
The exhaust gas emitted from fuel for vessels
contains sulfur oxide, accounting for 5-10%, nitrogenoxide, accounting for 15-30%, and carbon dioxide,accounting for about 3% of those in the world.
Consequently, these pollutants have raised concerns
over potentially adverse effects on the human bodyand environment. In response, the “International
Convention for the Prevention of Pollution from Ships,
1973, as modified by the Protocol of 1978 relating
theretoˮ globally regulates sulfur concentrations
contained in fuel oil. In 2020, the International
Maritime Organization (IMO) will significantly lower
the sulfur cap in marine fuels from 3.5% to 0.5% in
general sea areas.
To be prepared for the strengthened regulation, weare considering supplying LNG, as a low
environmental impact alternative fuel. LNG fuel emits
no sulfur oxides, 40-70% less nitrogen oxide and
20% less carbon dioxide, compared to conventional
fuel oils. As a specific effort, we have been promoting
a joint project with Uyeno Transtech Ltd. andYokohama-Kawasaki International Port Corporation
to commercialize LNG fuel supply in Tokyo Bay. In
June 2018, the project was designated as an LNG
bunkering hub development project eligible for a
subsidy by the Ministry of Land, Infrastructure,
Transport and Tourism.

26

Sustainability of Sumitomo
Corporation Group

Environment

SocialGovernance

ESG quantitative data

Third-party assessment

Resource use
Policy and concept

Activities

Humans depend on the socially beneficial functions of forests. Forests are
therefore a significantly important resource for the sustainable development of theworld. More than 1.6 billion people in the world receive benefits from forests, suchas food, water, houses, fuel, medicinal plants and means of livelihood. Seventy-five
percent of accessible drinkable water originates from basins with forests.
Sumitomo Corporation Group, which is engaged in wood business using such
precious forest resources, has been expanding its business to include forest
management with the aim of securing and using forest resources in a moresustainable manner than before.
In line with the concept of sustainable forest management, which means that
activities using forests should be conducted in such a way as not to lose thesocially beneficial functions of forests, the Group sets its business goals in such a
way as to fulfill its social responsibilities and in compliance with the Environmental
Policy and Supply Chain CSR Activity Guidelines.

Results
We are promoting the use of certified log, certified wood products and wood chips
from forests owned by the Sumitomo Corporation Group in Russia (OAO
Terneyles) and New Zealand (Summit Forests New Zealand).
FY 2017 results
Certified log (Russian)

131 thousand m3

Certified log (New Zealand)

337 thousand m3

Certified wood products(Russian)

Wood chips (Russian)Business description
Terneyles timber projectIn 2004, to be certified that we manage forests appropriately with consideration for
the environment and local communities based on objective evaluation, Sumitomo
Corporation obtained FSC® Forest Management Certification, an international
standard, for part of 2.6 million hectares of the forest area owned by OAO
Terneyles in the Russian Far East. After receiving FSC-FM certification*1 in 2004
as the first company in the Russian Far East, Terneyles made improvements one
by one to meet the requirements for the
FSC-CoC (Chain-of-Custody)
certification*2. In 2011, the company successfully acquired the certification for all of
its products, from logged wood to locally laminated woods, veneer, and chips forpaper. Sumitomo Corporation also received the FSC-CoC certification, when the
FSC-certified chain from logging in forests owned by Terneyles to end users wascompleted.
*1 FSC-FM (Forest Management) Certification: applies to businesses that manage forest
resources to recognize that they perform proper forest management*2 FSC-CoC (Chain-of-Custody) Certification (the management of processing anddistribution processes): verifies that FSC® certified material is identified or kept separated
from non-certified material throughout the chain.
This applies to furniture manufacturers, publishers, pulp makers, and other companies
dealing in wood products who want to prove the traceability of the wood they use.

Softwood lumber

59 thousand m3

FSC License Number

Veneer

209 thousand m3

Terneyles

FSC® C009842
FSC® C106397

Softwood laminated lumber

27 thousand m3

FSC® C112972

Hardwood lumber/laminatedlumberSummit Forests
New Zealand

5 thousand m3

Sumitomo
Corporation

FSC® C016535

41 thousand BDT
Forest owned by Terneyles

27

Sustainability of Sumitomo
Corporation Group

Environment

SocialGovernance

ESG quantitative data

Third-party assessment

Human Rights
Policy and concept
Basic Concept

Respect for the rights of indigenous peoples

As a global organization contributing broadly to society, the Sumitomo
Corporation Group employs Management Principles that place prime importanceon integrity and sound management with utmost respect for the individual. We
think that sustainability means growing with society constantly by addressing
social issues sincerely through our business activities. We will not only addresssocial issues through our business activities but will also fulfill our corporatesocial responsibilities, including co-existence with local communities, respect forhuman rights, environmental preservation, and compliance.

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, andthe principle of “free, prior and informed consent (FPIC).” In business operations inareas where indigenous peoples reside, we recognize their unique culture andhistory and comply with applicable laws and regulations of each country or region.

Based on these ideas, the Sumitomo Corporation Group complies with the
Universal Declaration of Human Rights, which the United Nations adopted “as acommon standard of achievements for all peoples and all nations” in 1948, and in2009 signed the UN Global Compact in its support of the Ten Principles that arederived from the declaration. We are also raising employee awareness withrespect to the Guiding Principles on Business and Human Rights, which was
adopted by the UN in 2011. In continuing global operations in a wide range offields, we will actively support and work on these international standards.

In the operation of its business in countries around the globe, the Sumitomo
Corporation Group uses security companies to protect the safety and security of its
employees. When necessary, we may use armed security personnel, recognizing
the human rights risks involved and complying with laws and regulations of thecountries in which we operate. We select security 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.

Respect for the rights of children

Sumitomo Corporation Group Statement for UK Modern Slavery Act 2015

As the world population is mostly made up of children and younger generations,
the Sumitomo Corporation Group is aware that its corporate activities have an
impact on the lives of 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 topreventing the violation of children’s rights through our business and social
contribution activities.

We set out the steps Sumitomo Corporation Group has taken to help ensure thatmodern slavery and human trafficking are not taking place in SC Group's businessor supply chains. The statement is approved by the board of directors of Sumitomo
Corporation as the parent company of Sumitomo Corporation Group.

Concept concerning the use of security companies

FY 2017 Statement28

Sustainability of Sumitomo
Corporation Group

Environment

SocialGovernance

ESG quantitative data

Third-party assessment

Human Rights
Activities
Training seminars on human rights
Sumitomo Corporation Group’s business activities cover a wide range of countries,
regions and industrial fields. We therefore consider that it is necessary for the Group tocooperate with suppliers, customers and business partners, instead of acting alone, in
promoting the entire supply chain to promote CSR throughout the entire supply chain.
Since fiscal 2014, we have held annual seminars inviting external experts as lecturers on
human rights issues that need special attention in business activities. The seminars covera wide range of topics, including the relationship between
companies and human rights issues, actual cases of
reputational risks from human rights violations, and how toassess the influence of human rights. Comments fromseminar participants include “Since the Group is engaged
in diverse business activities all around the world, weshould continue awareness-raising activities so that as
many employees as possible can better understandrelevant issues.ˮ

Business description

Black Economic Empowerment Act in South Africa
Due to the history of apartheid in South Africa, there are policies that aim to reduce
inequality in rights and opportunities for black people to participate in economic
activities and to improve their social status. It is required to include at least acertain number of black companies in a business project and to give back part ofthe profits to the community.
In South Africa, Dorper on-land wind power generation company in which we havean investment offers cooperation in improving the living environment of local
residents and creating new jobs, in line with such policies. Specific efforts include
repair of buildings of kindergartens, schools and hospitals located close to thepower plant, provision of machinery to them, and support to restaurants operated
by black women.
In these activities, we use local companies as much as possible. About 10% of thestocks of this company are owned by an NPO operated by local residents. It isplanned to launch various projects that meet the demand from local residents withthe dividends as a capital in the future.

Business description
Dialogue with local residents in mining projects
In promoting resource development projects, understanding of local areas isessential. In the development project of the Ambatovy nickel mine in Madagascar,
we have taken the initiative in having 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 our belief that “thisproject 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 the employment of people in Madagascar and improve their skills. In 2017,
we achieved an average of 90% of the goal, which is that Madagascar people
must account for at least 85% of all workers.
We have a complaint system to receive any kind of complaints, including humanrights 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 other countries' embassies.

Job creation (Central Purchasing Center)

An elementary school built within the project site

29

Sustainability of Sumitomo
Corporation Group

Environment

SocialGovernance

ESG quantitative data

Third-party assessment

Labor Practices
Policy and concept
Basic Policy on labor practices

Relations with employees (labor union)

The Sumitomo Corporation Group is addressing human rights issues. While
complying with laws and regulations in our countries of operation, we supportand respect the Ten Principles of the UN Global Compact, as well as theInternational Labour Organization’s core labor standards of eight conventions infour areas: freedom of association and the effective recognition of the right tocollective bargaining, elimination of all forms of forced or compulsory labor,
effective abolition of child labor, and elimination of discrimination in employment
and occupation. With regard to the elimination of discrimination in particular, wehave clearly stated that no person should be discriminated against due to humanrace, nationality, gender, religion, creed, age, origin, physical or mental disability,
or other reasons that are not related to business operations. We are also
complying with minimum wage requirements based on the labor standards andlabor conventions of each country.

Based on the collective agreement with the Sumitomo Corporation Labor Union,
Sumitomo Corporation provides its employees with explanations of its
management policy and the status of its business, as well as opportunities todiscuss wages, labor conditions, personnel affairs, safety and health, andemployee benefits on a regular basis. The agreement defines that the company
must maintain and improve employment conditions and ensure stable lives for
employees, and the labor union must keep order and discipline at work and makean effort to increase labor efficiency, and both parties must cooperate with eachother in developing the company's business. To achieve this objective, we makeevery effort to have serious and sufficient discussions on each specific project,while ensuring mutual understanding and trust.

 core labor standards of eight conventions in four areas

Freedom of associationand the effective
recognition of the right tocollective bargaining

Freedom of Association and Protection of the Right toOrganise Convention（No.87）
Right to Organise and Collective Bargaining Convention（No.98）Elimination of all forms offorced or compulsory
labor

Forced Labour Convention（No.29）
Abolition of Forced Labour Convention（No.105）

Effective abolition of childlabor

Minimum Age Convention（No.138）
Worst Forms of Child Labour Convention（No.182）

Elimination of
discrimination in
employment andoccupation

Equal Remuneration Convention（No.100）
Discrimination (Employment and Occupation)
Convention（No.111）

We hold various meetings to share opinions on a wide range of issues, in addition
to issues for collective bargaining and negotiations at the official level, such as
informal meetings with the president and round-table meetings on the Mediumterm Management Plan and other plans, business performance and relevant
issues, the personnel system, and work styles. Sumitomo Corporation adopts aunion shop system in which all employees are required to participate, excluding
executives above a certain level and employees classified as non-union members
based on an individual agreement taking into account the nature of their jobs. As
of October 2018, the number of members of the Sumitomo Corporation Labor
Union is 2,970, accounting for 58.3% of all employees of Sumitomo Corporation.

30

Sustainability of Sumitomo
Corporation Group

Environment

SocialGovernance

ESG quantitative data

Third-party assessment

Labor Practices
Policy and concept
Promotion of Diversity & Inclusion
The business environment surrounding the Sumitomo Corporation Group has
been rapidly changing and the regions and business fields in which we operate
and business models have also been rapidly diversified. In order for the Group toaddress such changes and continue to develop in a sustainable way in an era
called the fourth industrial revolution, it is essential to include diversity promotion
in its management strategy. Furthermore, in response to expanding overseas
markets, it has become urgently necessary to develop human resources for
management who can take a leadership role in driving business growth globally.
The basic concept of human resources strategy defined in the Medium-Term
Management Plan 2020 is “Diversity & Inclusion: Make diversity a source ofcompetitiveness.” It consists of four elements: “Expand the strength ofindividuals,ˮ “Capitalize on the strength of individuals,ˮ “Encourage individuals tochallenges,ˮ and “Value, respect and include individual differences.ˮ The lastelement supports the preceding three elements.
To survive this revolutionary world where business is becoming diverse andsophisticated, it is essential to effectively use a mixture of diverse kinds ofknowledge from diverse human resources to improve our competitiveness. In thiscontext, with a focus on the diversity of our human resources on a global basis,
particularly on individuals' strengths, we will combine their strengths to further
accelerate our growth strategies. What is important here is the concept ofinclusion, or creating an atmosphere that recognizes different individualities andrespects and accepts the differences. Based on this concept, we need to practiceinclusion and make effective use of differences as a source of competitiveness.
Simply focusing on visible diversity, such as gender, nationality, race, and age, is
not enough. It is also crucial to recognize invisible diversity, different opinions,thoughts, ideas, values, abilities, skills and experience. Our aim is to unite theorganization through managing invisible diversity and to use differences as asource of competitiveness to add value and accelerate growth.

In promoting the growth strategy, we need to involve all the employees of theGroup. To use them effectively, it is necessary to take into account invisible
diversity and allocate the right person in the right place at the right time on a
global basis and provide them with the right training. We also recognize thenecessity of creating the right organization and nurturing culture and awarenessto support it. To do so, both top-down from the management and bottom-up areimportant. One of the bottom-up initiatives is the launch of the Diversity &Inclusion Promotion Project in fiscal 2017 as an advisory body reporting to thepresident. Executives in charge of human resources, general affairs and legal
affairs serve as project leaders and project members with different backgrounds
discuss on-site issues and potential.
Opinions and suggestions from members of this project are reflected on thehuman resources strategy in the Medium-Term Management Plan 2020. In
cooperation with overseas organizations that have launched similar projects, wewill pursue diversity in the Group on a global basis.
Encourage individuals
to challenges
Expand the strengthof individuals

Capitalize on the strengths
of individuals
Value, Respect, Include
individual differences“Diversity & Inclusion”—Make diversity a source of competitiveness—

Basic Concept of Human Resources Strategy

31

Sustainability of Sumitomo
Corporation Group

Environment

SocialGovernance

ESG quantitative data

Third-party assessment

Labor Practices
Activities
Enhancement of Talent Management

Advancing Global Measures to Develop Human Resources

Talent cannot be developed overnight. There is a need to envision, develop anddeploy human resources required for the growth of each business in the mediumto long-term. In order to allocate human resources strategically in line withbusiness strategies continuously and on a global basis, the Sumitomo
Corporation Group implements the measures below to help all employees play anactive role, regardless of whether Sumitomo Corporation non-consolidated,
overseas offices or associated companies.

Aiming to recruit and develop personnel who can lead global business
operations, the Sumitomo Corporation Group is focusing on promoting anddeveloping locally hired employees in its overseas offices and Group companies.

Definition of Key
PositionsDefinition of Key
Position Criteria

Preparation of
Successor
Development Plan

Development ofManagerial Talent

As part of these efforts, we conduct training programs for locally hired employees
at different career levels, such as senior staffs, managers, and senior executives.
Through these training programs, nearly 300 participants each year come fromall over the world to the Head Office in Tokyo. The programs establish a sharedsense of the Sumitomo Corporation Group's corporate DNA and strengthen thesense of unity among employees as members of the Group by reaffirming
participants' understanding of Sumitomo’s business philosophy and the Group's
Management Principles.
Human resources globally playing a leading role
Sumitomo Corporation Group promotes placing the right person in the rightposition at the right timing on a global basis, regardless of nationality andaffiliation. Based on this policy, locally hired staff and employees of associatedcompanies are transferred beyond the borders of countries and companies. We
positively appoint local staff to executive positions of overseas offices topromote our policy of placing the right person in the right place on a global basis.

Key positions involving
Group management
needed to execute Groupstrategy. Portion in blue
shaded area: General
Manager and above
envisioned in the case of
Headquarters.

The abilities required of key
positions are defined fromthree viewpoints,"Experience," "Skill /Knowledge," and "Personal
Qualities."

Each key position candidate will beselected not only for the next
generation but also the following
generations to come, and a successor
training plan will then be put in place.
Additionally, according tocircumstances, candidates are
periodically replaced.

To enable key position
candidates to acquire thenecessary experience, skills,
and abilities, we will
effectively combine job
rotation, job assignment, andoff-the-job training.

Create a global humanresources database

To visualize what kind of human resources we have andwhere, we will build a Group human resources databaseincluding overseas human resources.

Introduce the Global Mobility Policy

Common Groupwide rules on employment conditions
and welfare packages to be applied in the case oftransfer between overseas bases.

Introduce the Global Grading System

To compare what level of human resources are present
across the Group, we will consider introducing a common
Groupwide personnel grading system.

President / GM of regional office: 11
Vice Presidents/executive positions: 1432

Sustainability of Sumitomo
Corporation Group

Environment

SocialGovernance

ESG quantitative data

Third-party assessment

Labor Practices
Activities
Encouraging More Active Involvement of Female Employees in Business

Maternity and Child-Care Related Programs at Sumitomo Corporation

Promoting active involvement of female employees in business is one of our importantmanagement strategies, and we are supporting these efforts through various measures.
Aware of the support required for achieving a satisfying work-life balance, Sumitomo
Corporation has introduced programs to encourage employees to work vibrantly andpositively following maternity and childcare leave in addition to the systems of support thatexceed requirements under the Child Care and Family Care Leave Law and related laws.
For example, Sumitomo Corporation established the Triton Sukusuku Square in-house
daycare center in 2008 to provide childcare services for Sumitomo Corporation Group
employees, distributed a handbook that supports the achievement of balancing aprofessional career and childcare, and introduced a program that supports employees who
only take their children with them while working overseas. We made an action plan ofpromoting women in March 2016 prescribed by The Act on Promotion of Women's
Participation and Advancement in the Workplace.

Attaching great importance to diverse values and lifestyles in personal WLM
fulfillment, we offer various optional programs and are flexible and supportive in
helping employees eliminate any problems or concerns.
Two
One
Three
year old years old years oldEntering
elementary school

Finishingelementary school

Action Plan (PDF/74KB)
Female Activation Promotion Project Team (from April 2006)
The "Female Activation Promotion Project Team" was established in line with WLM
promotion activities within the Human Resources Dept. We are developing more
support measures by identifying female employees' needs through interviews withfemale employees in key career positions. In addition, we hold roundtable discussions
with them as they have experience of keeping a balance between work and childcare.
Through these efforts, we provide opportunities for young employees to visualize how
they can work actively in the future without worries.
Support for balancing work and child-rearing
Sumitomo Corporation offers various options that are available both for men andwomen 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 abilities. The Human Resources Department's staff interviews an
employee who is to take a child care leave and her direct supervisor to provide
information on relevant programs to facilitate her taking the leave and returning to
work.

33

Sustainability of Sumitomo
Corporation Group

Environment

SocialGovernance

ESG quantitative data

Third-party assessment

Labor Practices
Activities

Childcare consulting services
As part of our efforts to support employees to achieve childcare-work balance,
we have adopted childcare consulting services provided by Poppins to which
we outsource the operation of the in-house nursery.
Re-employment of former employees who had to leave the company due
to their spouse's transfer
A re-employment program is available for former employees who had to leave
the company due to their spouses overseas transfer if they meet certain
conditions.

Sumitomo Corporation offers various programs to help its caregiving employees
work without anxiety. We are working to create a work environment where
employees who have entered the life stage of caregiving can play an active roleat work. We hold seminars on caregiving issues and individual consultation
sessions on caregiving issues (once a month). In 2014, we distributed the“Handbook for Managing Work-Caregiving Balanceˮ to all employees.
Consultation
on caregiving
issuesProgram

Eligibility criteria

Frequency/period

Seminars on caregiving issues

Once or twice/year
Sumitomo Corporation employees

Consultation sessions on
caregiving issues

Once monthly

Caregiving while working

Flex-time work system

Short working hours
Exemption of overtime work

When any of the following people needs long-term care:spouse, parent, child, grandparent, sibling, grandchild,or spouse’s parent

Under the flex-time work system, daily
work hours can be shortened by amaximum of 120 minutes.

Exemption of late night work

When any of the following people needs care:spouse, parent or child
Short term

The nursery, which is managed by an external company, is staffed withprofessional nursery workers and nutritionists. The spacious 200-square-meterroom is partitioned into separate areas for each age group, and is brightly andfreshly decorated in white with soft and odor-absorbing paulownia flooring. To
make it easier for parents, we have an arrangement with Tomod's, a drug store
operated by one of our group companies, to provide disposable diapers, baby
formula and other delivery services. Parents no longer have to haul around extra
clothes, diapers, and other supplies when taking their children to the nursery.

Support for balancing work and long-term care

Taking a leave of absence for acertain period of time for caregiving

In October 2008, "Triton Sukusuku Square," an in-house daycare center, wasopened in the commercial premises in Harumi Triton. The center, which is
exclusively for employees of Sumitomo Corporation and Sumitomo Group
companies, accepts up to 28 children aged from 0 to 5 years. The nursery was set
up to help improve employee WLM, and is especially flexible in addressing theneeds of employees who may return to work in the middle of the year, allowing
them use of the services until the following April, when municipal nurseries will
accept their children. It also acts as a temporary nursery that parents can use inan emergency.

Long term

Company Daycare Center "Triton Sukusuku Square" EstablishedThirty days for one case as a rule

A leave of absence fornursing careLong-term care leave

When any of the following people needs long-term care:
grandparent, sibling, grandchild, or spouse’s parent

Five days annually for one person
Ten days annually for two or more persons

When any of the following people needs long-term care:spouse, parent, child, grandparent, sibling, grandchild,or spouse’s parent

Three times/person
Up to 365 days in total

Other services available
Long-term care-related support services

Elderly home monitoring services

Cafeteria Plan

http://www.seacare.or.jp(Reference: HR intranet > Work-life management)(Reference: HR intranet > Employee benefits > Cafeteria Plan >User’s manual)Free consultation services for issues related tolong-term care, such us how to use long-termcare insurance services, how to get along withcare managers and professional caregivers,
and how to choose care facilities; and support
services for long-distance care and balancing
work and long-term care.

For those with a family member living
separately who needs long-term care or
those stationed in an overseas office whohave a family member living in Japan
who needs long-term care, homemonitoring services provided by SECOM
Co., Ltd. or CENTRAL SECURITY
PATROLS Co., Ltd. are available.

“Cafeteria Plan” points can be used for the
purposes below:
to partially cover caring costs
to partially cover costs for care products*Payment by users. Those working in Japan can use“Cafeteria Plan” points.

34

Sustainability of Sumitomo
Corporation Group

Environment

SocialGovernance

ESG quantitative data

Third-party assessment

Labor Practices
Activities
Support for senior employees' activities

Recruitment of mid-career human resources

In terms of securing human resources to ensure the sustainable growth of theorganization, Sumitomo Corporation has been improving the work environment toachieve active involvement of all employees regardless of age. The aim is to provide
all employees with opportunities to play an active role at work. As part of this effort, we
adopted in April 2006 an employment extension system that is available for all
employees who reach the mandatory retirement age of 60 and want to continue
working to the age of 65.

The business environment surrounding us has been rapidly changing. To survive
this transformation period, it is necessary for Sumitomo Corporation tocourageously enter new business areas in order to further expand and enhance
its existing business. In order to achieve this, we hire mid-career professionals
with high expertise and knowledge from external sources, in addition to existing
internal human resources The backgrounds of mid-career hires vary significantly,
from lawyers, accountants and other qualified professionals to those withexperience working in manufacturing, financial and media/IT industries. Taking
advantage of their high expertise acquired in each industry, they are playing anactive role in Sumitomo Corporation. What we expect from them is not only theirexpertise but also their ways of innovating and managing business. We hope theirunconventional ideas and perspectives different from ours that have been
generated in their diverse backgrounds will activate the company andorganization to eventually lead to the enhancement of our company's
competitiveness. We will increase the recruitment of mid-career professionals, inaddition to new graduates, to ensure the diversity of human resources.

CLP (career & life planning) training/career assessment interview
CLP training is provided to employees 50 years of age or older to give them an
opportunity to look back on their experience of working at Sumitomo
Corporation and develop their career and life plans for further improvement in
the future, regardless of internally or externally. In this training, we explain theemployment extension system and retirement benefits of Sumitomo Corporation,
public pension plans, long-term care and other insurance systems, and otherrelevant programs. In addition, we also provide information on how to prepare amoney plan, which is necessary to create a life plan. For employees 50 or older,consultation on post-retirement career and life plans is available when they
have an annual interview with their supervisor. With these services, we help
individual employees develop a flexible work plan after retirement.
Explanatory session on the employment extension system, individual interview
An explanatory session on the employment extension system is available for
employees reaching 58 years old. This session provides them with anopportunity to deepen their understanding of the employment extension system
and retirement benefits of Sumitomo Corporation, public pension plans, longterm care and other insurance systems. An individual interview with Human
Resources Department staff is also available for them to receive more detail
information of the retirement benefits and the pension plan.
Support to find a new job
For employees looking for a new job opportunity outside the company, Human
Resources Department supports them to introduce the services to find a newjob including counseling by a counselor in contract with the company.

Promotion of the employment of the disabled and retention of disabled employees

As part of its efforts in corporate social responsibility and toward diversity,
Sumitomo Corporation has been promoting the employment of the disabled. In
2014, we established Sumisho Well Support Co., Ltd., a special subsidiarycompany, to promote the employment of people with disabilities and retention of
disabled employees.
Disabled employees of Sumisho Well Support are engaged in various tasks, suchas supplying office stationery, in-house mail delivery, making name cards, andconverting data into PDF files to promote paperless transactions. They are now
indispensable for our company's business activity. As our business is expanding,the number of employees increased by 12 in the past year, to become 35 in total
as of June 2018. We will continue to cooperate with disabled persons and help
them grow and encourage them to be independent. As the Sumitomo Corporation
Group as a whole, while ensuring to meet the legal employment rate for disabled
people, we will further increase job opportunities for disabled people.

35

Sustainability of Sumitomo
Corporation Group

Environment

SocialGovernance

ESG quantitative data

Third-party assessment

Labor Practices
Policy and concept
Creation of an environment where diverse individuals can demonstrate theirfullest abilities
Sumitomo Corporation formed the company-wide “Work-life Balance Promotion
Project Teamˮ in April 2005. Since its launch, the team has implemented various
efforts. In December 2015, the team's name was changed to “Work-Life
Managementˮ in order to clarify our underlying idea that employees should
promote a smart work style over a medium- to long-term perspective andproactively manage work life balance. How to manage work-life balance depends
on individual values and lifestyles. We believe a fulfilling life as a whole, both atwork and in private life, produces vitality, which serves as a driving force to create
new value. In this context, Sumitomo Corporation offers various kinds of options
to help employees address various issues. We also use and promote an outputoriented approach to work, which generates high added value.

Activities
Reduction of overtime
Sumitomo Corporation has promoted a smart work style with smart distinction
and switchover between “work with full energyˮ and “enjoy private life.ˮ As
business is becoming diverse and sophisticated, job types and tasks are also
becoming diverse. Under these circumstances, the management of working hours
by reducing them quantitatively and uniformly does not suit the current situation.
Merely working long hours does not necessarily result in better achievement. In
terms of improving global competitiveness, company-wide efforts will be
continued to pursue a work style that generates added value. We have programsfor employees to share information on efforts to raise awareness and other useful
information. Examples are shown below:

Time Management Training
Reduction of overtime- Time Management Training sessions held
- Regularly holding labor-management roundtable discussions- Implementing work-style KAIZEN seminars (labor-management collaboration)- Awareness raising efforts
Encouragement to use entitled leaves- Quantitative targets set for paid leave utilization- Initiatives for “Premium Fridays”

Since 2005, we have been providing employees in Class-A key career
positions with time management training. We are expanding the target to awider range of employees, providing it in an ongoing manner as part of ouremployee awareness-raising activities.
Work-style KAIZEN seminars
Since 2008, jointly with the labor union, we have held work style kaizen
seminars inviting external lecturers a few times annually. Lecturers in the past
include Takeru Kaido, Osamu Hayashi, Akihiro Nakatani, Tsuneo Sasaki and
Yoshie Komuro.

- Spouse maternity leave , Refresher leave, Volunteer leave
Promotion of flexible work styles- Teleworking system- Super flexible work hours system

36

Sustainability of Sumitomo
Corporation Group

Environment

SocialGovernance

ESG quantitative data

Third-party assessment

Labor Practices
Activities
Encouragement to use entitled leaves

Creation of a work environment to realize self-sustaining and flexible workstyles

Sumitomo 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 target number of paid leaves to be taken in 2016
and the adoption of “Premium Fridays” in 2017.

The objective of the teleworking and super-flexible work hours systems is tocreate a work environment where employees can work proactively and flexibly andto achieve an output-oriented work style that generates high added value. By
allowing employees to work proactively and flexibly, it is aimed to help them makethe time for themselves to maintain good health and improve their self-value,leading to maximizing their performance.

Paid leaves taken by employees
In 2016, the company-wide, quantitative target was set for each employee totake at least 12 days, which was reached by 92.7% of employees; in 2017, it
was set for each employee to take at least 14 days, which was reached by
95.7% of employees. In 2017, another target of at least 16 days on averageamong all the employees was set, which was achieved. The company-wide,
quantitative target in 2018 was set for each employee to take at least 14 days,
along with the non-binding target of 16 days.
Premium Fridays• On the Premium Friday, it is recommended to take all-day or the afternoon off.
• If it is difficult to take a paid day off, it is recommended to use flextime andleave the office earlier than usual.
• In addition to the month-end Friday, which is designated by the Ministry of
Economy, Trade and Industry as Premium Friday, it is recommend that
employees take a paid day off or use the flex-time work system on otherFridays of the month, which we collectively call “Premium Fridays.”

Teleworking system
In November 2018, we adopted a teleworking system, which offers three
options: working at home, working from a satellite office, and mobile working.
This system applies to about 4,000 employees working for Sumitomo
Corporation in Japan. As a rule, eligible employees are entitled to up to 14.5
hours (equivalent to the work hours for two days) of teleworking per week.
They are allowed to work at home or any of more than 100 satellite offices
mainly located in Tokyo, which is helpful for them to expand the work area
flexibility. There are no particular restrictions on use, in general. Employees indifferent circumstances, such as providing childcare and long-term care,throughout the company, are provided an opportunity to work proactively andflexibly.
Super flexible work hours system
In November 2018, we abolished the flexible work hours system, under which
employees 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 individual
employees to design and manage their own work style, leading to further
improvement of the performance both of the organization and each employee.

37

Sustainability of Sumitomo
Corporation Group

Environment

SocialGovernance

ESG quantitative data

Third-party assessment

Work Health and Safety
Policy and concept

Systems

Basic policy

Employee engagement“To achieve prosperity and realize dreams through sound business activitiesˮ is
one of the management principles of the Sumitomo Corporation Group. Based on
this principle, our mission is to ensure the economic and spiritual prosperity ofpeople 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 and mental health isessential, without which it is not possible to constantly create new value. The
Declaration of Iki-iki Waku-waku Health and Productivity Management of theSumitomo Corporation Group was developed based on this belief. The Group
implements various efforts based on this declaration and by taking into account theactual situation of each group company. We will continue to promote healthmanagement based on the Declaration of Iki-iki Waku-waku Health andProductivity Management and with focus on “improvement of health literacy,”
which enables employees to maintain good health to continue working,“reassurance in emergencies” to be well-prepared for unexpected illness, and“global medical support,” which is unique to integrated trading companies.
Declaration of Iki-iki Waku-waku Health and Productivity Management
Recognized as an excellent health and productivity management enterprise in
the White 500 category
Safety measures in uranium mining
Our Groups development of uranium mines, production and sales of uranium
concentrates, and trading of various kinds of nuclear fuels containing radioactive
substances comply with each country's laws and regulations based on the IAEA
(International Atomic Energy Agency) standards. With our highest priority on
HSSE (Health, Safety, Security and Environment), we place the utmost importancein ensuring the safety of onsite employees and local residents. Specific measurestaken in production and sales of uranium concentrates include the measurement ofradiation exposure of all those entering and leaving the plant, and the
management and monitoring of cumulative radiation doses in employees. Uranium
concentrates and various kinds of nuclear fuels we deal in are all used for peacefulpurposes such as consumer power generation. Our relevant activities comply withsecurity trade control-related laws and regulations.

Sumitomo Corporation holds a monthly health and safety committee meeting,which is attended by labor union officials on behalf of employees, to discuss healthpromotion for employees and a better work environment. A roundtable conference
on work styles is also held twice a year by management and the union, whereparticipants exchange opinions with a view to improving work styles qualitatively
and quantitatively in terms of working hours for union members.
Crisis management system
Sumitomo Corporation has 22 offices in Japan and 109 offices overseas (in 65
countries and regions) (as of August 1, 2018). On a consolidated basis, theCompany employs around 73,000 workers around the world. In order to prepare
for the incidents, accidents and disasters that will inevitably continue to occur
within and outside Japan, each employee needs to be aware of crises and proper
safety measures on a day-to-day basis. Meanwhile, each organization also needs
to develop infrastructure for safety measures to prepare for an emergency. Also, inthe event of an emergency, we need to understand the situation with speed as it iscritical to build a support system and promptly resume business operations.
We have therefore centralized reports on all emergency cases, within and outside
Japan, within the Safety Promotion Division and ensure speedy reporting to thepresident by appointing the vice president as its general manager. This system
also enables provision of necessary support in a timely and unified manner.

38

Sustainability of Sumitomo
Corporation Group

Environment

SocialGovernance

ESG quantitative data

Third-party assessment

Work Health and Safety
SystemReporting of work-related accidents

OHSAS 18001-certified facilities

We take measures to prevent work-related accidents. If an accident occurs, it
must be immediately reported to the Employee Relations & Compensation
Department. The numbers of work-related accidents reported in Sumitomo
Corporation alone are as follows:

Sumitomo Corporation's consolidated subsidiaries that have been certified to
OHSAS 18001 are as follows:
Nanjing CMSCL Co., Ltd.
FUJIWA MACHINERY INDUSTRY (HUBEI) CO., LTD.

Number of work-related accidents
FY 2014

FY 2015

FY 2016

FY 2017

SCE (Steel Center Europe)

4 accidents

3 accidents

1 accident

2 accidents

SMTL (Sumisho Metal Thailand)

Changchun FBS Steel Processing & Distribution Co., Ltd.
No fatal accidents were reported.
If a work-related accident or disaster occurs at Sumitomo Corporation or any of its
affiliated companies despite our prevention efforts, it must be immediately
reported to the Safety Promotion Division led by Representative
Director/Executive Vice President as Director. Managers of major departments of
the Corporate Group serve as members of the Safety Promotion Division. At theend of every month, they are required to submit a monthly report to the Managerof the Planning & Coordination Department of each Business Unit (Executive
Officers, Directors) to keep executives informed of the current situation. Measures
to address work-related accidents, such as investigations and responses torelevant issues, and prevent them from recurring are taken appropriately.
Important issues are determined by the Safety Measures Implementation
Headquarters and particularly important ones are reported to the Management
Council by the Headquarters' Director (Representative Director, Executive Vice
President) to discuss and decide upon.

Nanjing Baosteel Summit Metal Products Co., Ltd.
THAI SUMILOX CO.LTD.
Shanghai Summit Metal Products Co., Ltd.
Dalian Bao-Summit Metal products Co., Ltd.
EDGEN (Sites other than those in USA have been certified.)

HOWCO (Sites other than those in USA have been certified.)
MINERA SAN CRISTOBAL S.A.
SC Foods Co., Ltd.

39

Sustainability of Sumitomo
Corporation Group

Environment

SocialGovernance

ESG quantitative data

Third-party assessment

Work Health and Safety
Activities
Education on crisis management

Measures against global health problems

Sumitomo Corporation provides a series of seminars on safety measures in order toencourage each employee to become more aware of crises and to learn how to ensure
their own safety. We organize over 90 seminars a year, dividing the programs into 4
grades and 6 courses according to the participants’ experience and learning levels.
Also, each office has prepared its own manual on safety measures, which is sharedwith the Safety Promotion Division, in order to ensure a prompt and effective initial
response when a contingency occurs. We have built a system to provide prompt andeffective relief and support through cooperation within and outside the country in timesof emergency.
We also develop safety net systems as part of our regular practice. For example, wehave a system that obtains real-time information on troubles around the world (e.g.,terrorism, major accidents, severe weather, natural disasters, etc.) and forwards it toemployees who are working on assignment in or taking a business trip to various
places. Another example is a system to provide support when emergency medical careis needed.

Currently, many countries around the world are struggling with serious health issues,
including HIV (AIDS), tuberculosis and malaria. The Sumitomo Corporation Group isdetermined to take active measures against these global health problems.
In order to ensure that officers and employees of our Group have accurate information
about and protect themselves from these infectious diseases, the Company provides
health checkups in advance for officers and employees who are assigned overseas
and, when necessary, encourages them to be vaccinated against infectious diseases.
We also provide a variety of training before their assignments. Moreover, we started
organizing e-learning and seminars on safety measures in FY2017 in response torequests by employees about to go on their first overseas business trip as well as
those looking for the latest information on infectious diseases. These programs aim toenhance awareness of crisis management and disseminate accurate and up-to-date
information. We make these programs available to officers and employees not only of
Sumitomo Corporation but also of the entire Group within and outside Japan. Throughthese activities, we support employees’ health and safety while they are overseas.

Business description
Health support services to employees stationed overseas
Sumitomo Corporation has its offices in 66 countries. A total of about 1,150
employees are stationed around the world along with about 1,160 family members of
theirs. We provide these expatriates working in an environment different from Japan
with health care services to maintain their health, such as an annual health checkup.
Counseling services provided by a clinic and the SCG Counseling Center are alsoavailable for those with mental and physical disorders. We have a contract with
Emergency Medical Assistance Services, which cover a wide range of support
services from health counseling offered by an external doctor, public health nurse andother healthcare professionals to emergency transfers. We provide information onnecessary vaccinations, local safety conditions, how to prevent infectious disease andother important issues to employees before overseas business trip and transfer andtheir family members.

PT FUMAKILLA INDONESIA
Under the slogan of “protecting people's lives,ˮ Fumakilla Limited entered theIndonesian market where protection of people from infections is a major concern intheir living environment. Over the last 30 years, the company has made slow but
steady efforts in spreading its mosquito repellent coils with high medical effects inevery corner of the region. As a result, it has now the largest share in the Indonesianmarket, contributing to the Indonesian market,
contributing to addressing one of the major
local social issues. In terms of social
contribution, not only the product performancebut also the marketing method applied there(a business model called BOP to deliverproducts directly to general users in emerging
countries) are significant. Since its foundationin 1990, we have been continuing ourinvestment (current share of 20%). Our
employees assigned there also support the Mosquito repellent coil of Fumakilla
local operation of Fumakilla.

40

Sustainability of Sumitomo
Corporation Group

Environment

SocialGovernance

ESG quantitative data

Third-party assessment

Work Health and Safety
Activities
ClinicSumitomo Corporation has set up an in-house clinic (internal medicine anddentistry) to support employees’ health management on a day-to-day basis. Theinternal medicine department is open five days a week for outpatients, withspecialists in lifestyle diseases such as diabetes and hyperlipidemia, infectious
diseases, and the liver, kidney and respiratory organs. The department also
provides employees at high risk of developing lifestyle diseases with ongoingsupport, including nutrition counseling by registered dietitians and collaboration
between specialists in diabetes and nurses, as well as regular blood tests. At thedentistry department, checkups are provided twice a year in addition to regulartreatment. Dental and oral hygiene education is also offered on an individual basis
as needed.

Subsidies for costs of health checkups and complete physical examination
The in-house clinic provides services such as periodic health checkups (for thoseunder 35), health checkup immediately after joining the company, and healthcheckup 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. The
percentage of those who received a periodic health checkup, including complete
physical examination at an external medical facility, in fiscal 2017 was 100%.
Based on results of a periodic health checkup and complete physical examination
at an external medical facility, the internal clinic provides detailed follow-up care,and the corporate health insurance society provides specific health guidance.
These services help employees prevent disease and detect disease at an earlystage.

Mental healthcare
We provide training on mental health several times a year, including self-care
education and training for managers. Through these comprehensive programstaught by external instructors, trainees learn key points about their own mental
health and that of others. About 450 employees (including those from Group
companies), mainly young employees and managers, take this training in theform of 10 sessions per year. We have also set up a counseling center “foreverything, with confidentiality totally protected,” which is used by a total of over
1,200 employees annually. In addition, we conduct an annual stress checkup,
which is extended to employees working overseas. The health consultation officewithin the in-house clinic, also covering mental health, is also available toemployees working abroad. To prevent the progression of mental illness and help
employees return to work, the in-house clinic also has a specialist in
psychosomatic medicine available three days a week.

Obesity in young adults
Increase in healthy menus
at the in-house cafeteria

1. Improvement ofhealth literacy

Sumitomo Corporation: A company
where all employees work with energy,
Prevention of aggravationof lifestyle diseases
Education and counselingon mental health

Advancement of work styles(Fulfilling personal life
Making time for health maintenanceand improvement)
Health seminars
No-smoking on office floors ofthe Head Office building

excitement, and good health, and takeon challenges to create new value

Emergency Medical Assistance
Services
Expansion of counseling services
to employees and their families
Stress self-check

Support for balancing
work and treatment

2. Reassurance inemergencies

3. Global medical
support41

Sustainability of Sumitomo
Corporation Group

Environment

SocialGovernance

ESG quantitative data

Third-party assessment

Work Health and Safety
Activities
SCG Counseling Center

SCG massage room "Koriton"

The Sumitomo Corporation Group is an organization that supports its employees
so they can work with enthusiasm, and provides the SCG Counseling Center inthe Harumi Triton Square, where Sumitomo Corporation's Head Office is located.
This center is staffed with multiple counselors to help solve various problems andconcerns. Since its establishment in April 2005, confidentiality has been well
protected, and employees have become used to consulting staff about any
problems at this center with ease of mind.
(1,200 or more consultation issues in 2017)

The “Koriton” massage room was opened in the Harumi Triton Square in April 2008as a place where SCG employees can receive relaxing therapy. We havereceived many favorable comments, such as "It's very convenient to keep in good
shape in a break from working" and "The efficiency of my work after massage was
improved." A total number of users in fiscal 2017 exceeded 3,600.

Service provider
SCG Counseling Center

Services
Counseling in personCounseling by phoneCounseling by visiting theemployee's site

Various seminars

Consultation
External
contracting
companyCounseling in person, by
phone, by visiting theemployee's site

Eligible users

Activities

Mainly for employees inTokyo
All employees

Qualified counselors provide
counseling to employees inJapan and overseas.
Qualifications of the counselors
include senior industrial
counselors, clinical
Employees outside ofTokyo including overseas psychotherapists, career
consultants, and family
consultants.
Implementing seminars for
managers, general employees,
All employees
employees overseas, andemployees' families
Management

All employees

Consultation for managers
regarding how to respond totheir subordinates
Contracting external companies
to provide counseling in person,by e-mail, phone, and visiting theemployee's site.

Measures against smoking

On the occasion of the relocation of the Head Office in September 2018, we
designated office floors of the Head Office as non-smoking areas. We have also
taken measures against smoking, including a subsidy to those who want to quit
smoking to buy antismoking gums and an anti-smoking support program provided
by the clinic.

42

Sustainability of Sumitomo
Corporation Group

Environment

SocialGovernance

ESG quantitative data

Third-party assessment

Work Health and Safety
Activities
Business description

Business description

Stable supply of tubular products based on strict HSSE management

Measures taken in logging of raw wood

Our company is the number one supplier of oil wellpipes in the United States and engaged in diverse
business activities around the world. Based on ourbasic policy that compliance with laws and regulationsand HSSE should be given priority over all businessactivities, we have started establishing a global HSSE
management system. Under the slogan of "ZeroHarm" to completely prevent occupational andenvironmental accidents, we have developed an
HSSE management system that applies to our global
activities, based on continuous improvement throughthe PDCA cycle. We also assigned staff specializing
in OHSAS 18001 to major overseas offices andestablished a global HSSE network connecting four
regions in the world. Through these efforts, we areenhancing HSSE management taking into accountregional business activities.
The General Manager of the Tubular Products
Division announces the HSSE Policy every year to all
employees of the global tubular products group. The
policy places emphasis on our commitment toensuring an environment where the highest priority isgiven to the safety and health of not only our
employees but also customers, contractors, suppliers
and local community residents.
One of the 12 elements that constitute the HSSE
management system is risk management. It is
required for our business offices around the world to
identify, analyze and evaluate risks unique to each
office due to differences in the types of onsite work,

The incidence of occupational accidents in theforestry industry is higher than those in otherindustries. The ratio of serious accidents, including
deaths, is also very high.
To cope with this situation, we comply with theinternational safety management standards required
for Forest Stewardship Council (FSC) certification inforest management by OAO Terneyles in Russia in
which we invest. If we receive instructions as a resultof an audit for the renewal of the certificate, we take
improvement measures immediately. We have thus
been certified consecutively since 2004.
We have also implemented various measures toprevent occupational accidents. Our efforts to reduce
occupational safety and health-related risks include:
inclusion of safety management rules into the internal
regulations; inclusion of safety-related items in a job
description contract with an employee; establishmentof the Safety Management Department; and onsite
inspection by the Safety Management Department at
plants and work sites of the company.
When the Safety Management Department
determines it necessary to make improvements, each
onsite manager is required to develop an
improvement plan and report it to the president. Aftercompleting the improvement, the manager also must
report its result. The Safety Management Department
is required to make a list of occupational accidents
that have occurred in the last month based on reports
provided by each site and report it to the president. If
necessary, the department develops an improvement
plan and give each site an instruction to implement
improvement measures.

facilities and work environment, which has been
useful to develop effective measures for each worksite. To further improve the level of HSSE
management, we have developed our own ICT tool to
be used for reporting accidents, sharing information
among different regions such as information on
activities, risk assessment results, successful cases
and know-how, and providing e-learning educationand training.
Since the introduction of the global HSSE
management system, the number of accidents has
steadily decreased. In 2014, we added a new slogan"Beyond Zero Harm" to show our intention not only toachieve "Zero Harm" but also to make it our habit tomaintain the state of "Zero Harm," through embedding
the HSSE culture throughout the company. We aredetermined to further strengthen the management
system to achieve "zero Harm" and fulfil our social
mission as the top supplier through stable supply of
tubular products.

43

Sustainability of Sumitomo
Corporation Group

Environment

SocialGovernance

ESG quantitative data

Third-party assessment

Human resources development
Policy and concept

Activities

For the Sumitomo Corporation Group, human resources are the most important managerial
resource. Based on its understanding and implementation of the Management Principles
and Activity Guidelines, the Sumitomo Corporation Group is committed to contributing tosociety across a broad range of areas by leveraging its diverse workforce of people from allwalks of life who are constantly creating new value on a medium- to long-term basis. To
meet this commitment, the Group is striving to enhance the abilities of individual employees
and speed up human resource development while fostering strategic and planned
employment as well as the development and empowerment of its workforce as whole. For
the development of its human resources, the Sumitomo Corporation Group traditionallyprovides both OJT and OFF-JT. OFF-JT supplements OJT, which forms the foundation of
the Group’s human resource development. In OFF-JT programs, participants look back on
their job successes and failures, generalize/ conceptualize their experiences, and acquire
the skills and knowledge required for their jobs in preparation for taking on more difficult
tasks.
Sumitomo Corporation Group Personnel Development Programs

Elective/Long-Term Programs

Elective Programs
Introductory
Seminars
Basic
Seminars

Training for new departmental heads

Training for new team leaders

SMI training

Executive positions

Class A

Training for new Class A careertrack employees

Selection for promotion

Class B(shortest period of 4 years)

Training for chiefs

Requirements for promotion

Second-year training

Training for new employees

Level-Specific Programs

Class C(shortest period of 4 years)

Development of managerial talent

Training for new corporate officers

Training period

Our personnel development programs
As Sumisho Business College (SBC), we organize 320 courses of OFF-JT training
a year and offer programs that cover the knowledge and skills necessary forbusiness.
In particular, we are focusing on training programs that will contribute to enhancing
the abilities of individuals such as change and creativity, logical thinking, execution/ realization capability.
We also offer Long-Term Programs for Selected Employees that allows 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
associated companies in Japan and abroad. In our efforts to enhance thedevelopment of human resources, we make effective use of external training
programs, such as overseas executive programs, in addition to in-house training
programs.
We also constantly conduct a study tour to visit Besshi Copper Mine where thebusiness of the Sumitomo Corporation Group started to give employees anopportunity to feel Sumitomo’s Business Philosophy, which is the source of theGroup‘s Management Principles. Since fiscal 2017, we have increased thefrequency of the program and expanded the eligibility requirements to further instill
the philosophy.
Number of hours for ability
development training in fiscal 2017
Total number oftraining participants

11,818
employees

Total number oftraining hours

62,967 hours

Number of training
hours per employee

12.4 hours

Long-Term Programs for Selected Employees
Executive programs
Workshop with
General Managers
of Business Units
Sumitomo Executive
Management Program

Leadership Cultivation
ProgramIntroductory/Basic Seminars , trading business program, legal affairs program, investment-related program, Accounting and Tax Affairs
Program, Basic Series for Employees Engaged in Managerial Operations, human resources management program, Strategy Building
Program, leadership program, program for management, global human resources development program, etc.

44Sustainability of Sumitomo
Corporation Group

Environment

SocialGovernance

ESG quantitative data

Third-party assessment

Human resources development
Human resources
development programs
1. Level-Specific Programs
Level-Specific Programs are designed to help
employees develop leadership mindsets and theskills needed for each levels, with the aim ofsystematic leadership development. From new
employee to senior management, Participants in the
training will understand what is expected of them andwhat roles they should fulfill, thereby acquiring tips on
how to transform themselves. Participants who are at
the same level will inspire each other to become more
motivated to learn. We also hold Level-Specific
Programs for the entire Sumitomo Corporation Group.
Through the program participation, they build a rich
network within the Sumitomo Corporation Group.

3. Long-Term Programs for Selected Employees
Participants in the programs will work to establish their own management philosophy and acquire skills to foster
self-directed learning and practical leadership, which are difficult to develop under short-term programs.
Participants in the programs are selected from among those who are demonstrating their abilities at theforefront of business and those who are expected to take on leadership roles in the future. The programs aredesigned to help these employees take their skills to the next level. Also, in some of the programs, lecturers
and participants will engage in two-way discussions so that participants can gain a broader perspective onorganizations, the entire company, and society as a whole.
 Leadership Cultivation ProgramThis workshop is targeted at young managers who have subordinates andare expected to demonstrate their abilities as team leaders and in othersimilar positions. It consists of 10 sessions in six months. Participants willlearn about the concept of “self-independent attitude” through the training
and review one’s own leadership style and actions. They will acquire
management techniques for motivating each one of their subordinates anddrawing their potential so that they can maximize the organizational
productivity.

2. Elective ProgramsMore than 70 different selective programs areavailable, covering comprehensive knowledge andskills, from basic to advanced levels, that will beneeded to play a leading role as an executive. Aftercompleting the Introductory Seminars and the Basic
Seminars where employees can acquire the basic
skills and general knowledge(standard skills andknowledge) required to work for an integrated trading
company, employees can choose any of the
programs where they can learn about knowledge andskills required for them to do their work. In addition,"SC MBA" is prepared to acquire management
literacy. It is designed to provide them with basic
theories and frameworks that they need tounderstand, regardless of their present department or
job details.

 Sumitomo Executive Management ProgramThis workshop is targeted at team leaders who are working at theforefront of business and are or will be engaged in business managementat Group companies. The program consists of about 30 sessions forabout 10 months. By this program, Sumitomo Corporation will develop
business leaders for each worksite by helping participants to acquire
management literacy (knowledge and skills) and to establish their
management philosophy and ideas as a foundation for taking a broader
view, taking actions, and making decisions. After completing the program,participants are required to make a presentation in front of executives.
Overseas trai ni ng at IMD
In col l aborati on wi th overseas busi nessschool IMD, a customi zed program i s
i mpl emented i n Lausanne, Swi tzerl andwi th a focus on the fol l owi ng threeel ements, whi ch are i ndi spensabl e fora gl obal workforce: Workshop with General Managers of Business Units
This workshop is targeted at those who assume executive positions in the
Sumitomo Corporation Group and are therefore required to take a broad
view for the management of the entire Group. It consists of eight sessions
in about four months. Participants acquire the ability to think broadly fromthe viewpoint of management by participating in dialogues anddiscussions
with senior management, and make findings about the ideas and attitude
that are required of management.

Global Leadership/The Digitalization Revolution/
Innovation and New Business Models

 Executive programs
We will proactively dispatch candidates for its management team tobusiness schools and other executive programs implemented in Japanand abroad. Participants in these overseas programs are required to attend the orientation meeting and Pre-Executive Program (to learn how
case studies are conducted at business schools and enhance theirpresentation/discussion skills) provided by the Human Resources
Department.

45

Sustainability of Sumitomo
Corporation Group

Environment

SocialGovernance

ESG quantitative data

Third-party assessment

Human resources development
Human resources
development programs
4. Training of overseas local staff
The Sumitomo Corporation Group also places anemphasis on promoting and training local staff ofoverseas organizations and Group companies inorder to enhance the retention and development of
human resources who are globally competent.
As part of this effort, we provide Level-Specific
Programs(non-managerial staff, managers andexecutives) to overseas local staff. This training
programs are held more than ten times every year at
the Tokyo Head Office inviting nearly 300 local staff
from different sites around the world. They aredesigned to share the Sumitomo Corporation Group's
DNA, cultivate a sense of unity, share information on
the company's management policy and strategies byreminding the participants of Sumitomo’s Business
Philosophy and the Group's Management Principles.
Various kinds of lectures to improve their skills arealso included.
In fiscal 2013, our global operations were broadly
divided into four broad regions. We will take various
measures to promote the training and use of local
staff within each region, including rotation of local
staff members within the region and promotion ofstaff of overseas organizations and group companies
to key positions. To further promote the development
and use of human resources on a global basis, theTokyo Head Office supports local organizations fromvarious aspects, including establishment andimprovement of employment and training systems.

Activities
5. In-house education and awareness-raising on
respect for human rights

As a global organization contributing broadly tosociety, the Sumitomo Corporation Group employs
Management Principles that place prime importanceon integrity and sound management with utmost
respect for the individual. Based on this principle, theGroup developed the CSR Action Guidelines for
Supply Chain Management that take into
consideration human rights and various other issues.
The first provision of the guidelines is to “respecthuman rights and not to be complicit in human rights
abuses.” With the above considered, we haveestablished a committee to promote human rights
and Dowa issues, and we have a forum to discussinternal issues on human rights such as Dowa issues,
Buraku discrimination, people with disabilities, foreign
residents and other issues related to human rights
every year. We also invite experts from outside thecompany to give training sessions to improve
employees' awareness of human rights. In fiscal
2014, we held a seminar on human rights issues thatneed special attention in business activities. Since
fiscal 2015, we have held practical workshops on
methods for assessing risks of human rights
violations in supply chains. Training seminars on
mental health and human resources management
are also available. Particularly in Level-Specific
Programs for managers, programs on harassment
have also been added to maintain a harassment-freework environment and to provide suggestions on how
to address harassment if it occurs. Through these
efforts, we constantly provide employees with correct
education and raise their awareness to prevent
human rights violations at work.

Sumitomo Corporation Global HRD Center
A training center to develop global talent as well as to be used
as a strategic multipurpose facility

The Sumitomo Corporation Global HRD Center inGinza, Tokyo serves as a training center to develop
global talent as well as a strategic multipurpose facility.
As a training center, it is used to further strengthen thedevelopment of a global and diverse talent. It also hasa versatile multipurpose space, which is used for
Head Office functions. International colleagues fromdifferent organizations and countries all over the world
meet at this facility for intensive discussions on the
future visions and strategies of the Sumitomo
Corporation Group.
Career adviser
Since April 2007, career advisors (CA) have been
available at each organization with the aim of
improving employees' career development andreinforcing the organization through providing
assistance to individuals and organizations.
CAs have three key roles: provision of support andadvice to employees (both subordinates andsupervisors), and provision of
support forcommunication between individuals and theorganization. Through these roles, they support thecreation of a good work environment where
employees can maximize their abilities and strength.

46

Sustainability of Sumitomo
Corporation Group

Environment

SocialGovernance

ESG quantitative data

Third-party assessment

Human resources development
Activities
Business description

Business description

Human resources development for a large-scale purchasing project of construction
machinery made in Japan, the first of its kind in Uganda

Job training programs at Toyota Iraq

The Republic of Uganda is a landlocked country in
East-Central Africa. The agricultural populationaccounts for 80% and its major industry is agriculture,
which accounts for 40% of the GDP and 80% of theexport revenues. The Uganda Government promotes
economic growth for the purpose of addressing social
issues, such as poverty reduction. Its main efforts areconcentrated on diversifying export products, mainly
agricultural products, and adding value to them.
Among the government priority policies to achieve thisgoal, the highest priority is placed on the construction
and maintenance of local roads that are used todeliver and sell domestically produced agricultural
products safely and promptly in domestic andinternational markets. They have developed plans topurchase construction machinery and vehicles
necessary for road construction.
In response, based on our wide variety of experiencein export sales business over many decades in Africa,
we proposed a scheme for which a customer-oriented
financing can be used. In September 2015, ourcompany and the Uganda Ministry of Works &Transport signed a contract for large-scale purchasesof about 650 construction machines in various kinds
and about 500 vehicles. In April 2017, we starteddelivering them and, in May 2018, all the machines
were installed as planned. These machines andvehicles are operated at various places in Uganda.
Construction machines and vehicles that have been
supplied by our company are being used forconstructing road networks as scheduled in Uganda,
leading to enhancing the distribution of agricultural
products domestically and internationally. Ourcontribution to supporting the transportation
infrastructure of the country and to building a platformthat promotes economic development will generate a

Sumitomo Corporation provides job training programs in
Iraq via Toyota Iraq, its consolidated subsidiary. The
objective of these programs is to help young internallydisplaced persons (IDPs) in Iraq acquire technical skills toensure their stable employment opportunities in the future
and to form the basis of independent living.

virtuous circle of growth and development together
with local communities.
It is also essential to train operators of supplied
construction machines and vehicles in order to usethem over many years.
In this project in Uganda, we placed emphasis not
only on delivering construction machines and vehicles
but also providing education and instruction on how to
operate them correctly. In cooperation with eachmanufacturer, we trained a total of 47 operator
trainers and about more than 1,000 operators.
In addition to sales of construction machines andvehicles, we also provide after-delivery services, incooperation with each manufacturer, including parts
supply, to ensure continuous operation without
problems. We also provide support programs,
including training of machine operators and trainers
who educate machine operators. Through these
efforts, we believe we can contribute to thedevelopment of Uganda.

Training of local operators of supplied machines
The vehicle in the photo is a motor grader used for ground leveling.

In Iraq, the prolonged conflict has had tremendous impacts
on the public. More than three million people have been
forced to leave their homes. Impacts on young people areparticularly significant. They have lost opportunities foreducation and employment. In these circumstances, it has
become urgent to create opportunities to ensure stable
income in order for them to rebuild their lives. In response,
Toyota Iraq, jointly with the UNDP, implemented job training
programs for IDPs four times. A total of 37 young people
have so far completed these programs. It is the hope of
Sumitomo Corporation to achieve the sustainable
development of local society. To fulfill this hope, we willcontinue to support IDPs to improve their living conditions in
Iraq through our business activities.

Trainees receiving training on vehicle maintenance, parts warehousemanagement and customer services

47

Sustainability of Sumitomo
Corporation Group

Environment

SocialGovernance

ESG quantitative data

Third-party assessment

Supply Chain
Policy and concept
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 andbusiness partners to achieve responsible value chain management. The Company provides numerous opportunities to promote the understanding and entrenchment ofthese 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.
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, andcontributing broadly to society, strives to achieve 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 andsound 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 corecompetence of integrated corporate strength, we request our suppliers and business partners to kindly accept, understand, and practice these guidelines sothat together we can achieve responsible value chain management.
Our suppliers and business partners are expected to:
1.
2.
3.
4.
5.
6.
7.
8.

Respect human rights and not to be complicit in human rights abuses
Prevent forced labor, child labor and the payment of unfairly low wages
Not engage in discriminatory employment practices
Respect the rights of employees to associate freely in order to ensure open and fair negotiations between labor and management
Provide employees with safe and healthy work environments
Protect the global environment and give due consideration to biodiversity
Ensure the quality and safety of products and services
Ensure fair business transactions, to abide by all applicable laws, rules and regulations, and to prevent extortion, bribery and all other forms of 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.
Interpretation of The Sumitomo Corporation Group CSR Action Guidelines for Supply Chain Management

48

Sustainability of Sumitomo
Corporation Group

Environment

SocialGovernance

ESG quantitative data

Third-party assessment

Supply Chain
Policy and concept
Conflict minerals policy
The Dodd-Frank Act, which was enacted in July 2010,
requires US-listed companies to trace the country oforigin of minerals used in their products within their
supply chains to determine whether or not "conflictminerals"* produced in and around the Democratic
Republic of the Congo are included. The results must
be reported annually to the U.S. Securities andExchange Commission (SEC) and disclosed on theirwebsites.
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 isused by our partner company, our reputation could
be harmed and it may affect customer selections. We
therefore gather relevant information regularly andmanaged it unitarily.

* The Dodd-Frank Act defines conflict minerals as tin,tantalum, tungsten and gold.

Activities
Business description

Business description

Measures taken in the textile industry

Measures taken in the chemical and electronics
industries

Sumitex International Company Ltd. deals in products
ranging from fiber material to final secondary products,
such as clothing and general merchandise. The
company aims to achieve sustainable growth inharmony with society while paying carefulconsideration to labor and other practices in their
supply chains.
They conduct work environmental audits of plants
where the production is outsourced, based on thestandards of some customers. Issues to be audited
include not only the work environment but also childlabor,
forcedlabor,
coercion,harassment,
discrimination and occupational safety. The company
does not use manufacturing plants that fail to meetthe standards and only use those that meet the
Sumitomo Corporation Group CSR Action Guidelines
for Supply Chain Management and the Code of
Conduct (CoC) of our customers.

Sumitomo Shoji Chemicals Co., Ltd. is mainly
engaged in trading business of chemical andelectronic products, which are involved in various
industries and have a multitude of applications.
Before starting business transactions, the company
confirms that each supplier of raw materials does notuse conflict minerals, which are key funding sources
for local armed groups, and appropriately manages
chemical substances contained in their products inline with customer's demands, to make sure that noissues related to the environment and human rights
have been reported. Sumitomo Shoji Chemicals is amember of Sedex, a nonprofit membershiporganization providing a world’s largest platform tomanage and share ethical 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 andenvironmental audit of Sedex.

Sumitomo Shoji Chemicals agrees on the Green
Partner Environmental Quality Approval Program ofits clients, whose objectives include the promotion ofenvironmental protection. It also requires its suppliersof raw materials to agree on a green procurement
program and other relevant programs and to comply
with environment-related laws and regulations, andfollows their implementation.
Apparel manufacturing plant of Sumitex International Company Ltd.

49

Sustainability of Sumitomo
Corporation Group

Environment

SocialGovernance

ESG quantitative data

Third-party assessment

Industrial and technology innovation
The use of Information and Communication
Technology (ICT) has become widespread in allindustries. As a result, the world has becomesincreasingly borderless and complex. In response, it
is inevitable for the Sumitomo Corporation Group tocope with accelerating technology development andinnovative business models that will change thestructures of all industries. In this context, we haveincluded "Technology x Innovation" in the emerging
fields in the medium-term management plan.
The highest priority is placed on the upgrading ofexisting
businessbyaccelerating
digitaltransformation, revolution in business models, andcreation of new business models. To achieve thesehighest priority targets, we established the DX
Center. We will also cooperate with our Group
company SCSK Corporation to accelerate the use ofoutside professionals.
To promote business development for the next
generation, we have reinforced our businessdevelopment systems in Silicon Valley in the UnitedStates, Europe, Asia and other regions. We will also
promote collaboration with venture enterprises thatpossess innovative technologies and businessmodels, and collaboration among business units andoverseas offices beyond the existing frameworks.
In this regard, we will create an organization to which
we can delegate decision making authority on
investment and that facilitates flexible and adaptablebusiness development. As an investment fund fornext-generation business in the "Technology x
Innovation" field, 20 billion yen will be allocated fromthe three-year total of 300 billion yen for theinvestment fund in the three emerging fields in themedium-term management plan. This fund will be
used to promote R&D to create next-generation
businesses.

Business description
Venture investments in Silicon Valley
Through a venture investment fund it established last year, Sumitomo Corporation Group has invested in Arevo,
Inc. (“AREVO”), a company known for its 3D printing technology using carbon fiber reinforced composite
material. 3D printers produce three-dimensional objects from design models by adding materials layer by layer.
Originally, 3D printing technology was developed for making prototypes for manufacturers to examine thestructure, design, and function of products before mass-producing them. In recent years, however, theperformance of 3D printing has improved to the point that the technology is beginning to be used for
manufacturing processes themselves. Capable of making an entire product without assembling different parts,
3D printers can reduce production cost, inventory cost, and manufacturing time.
AREVO developed a 3D printing technology that uses its unique composite material combining carbon fiber andresin. Being extremely strong, rigid, and lightweight, the carbon fiber composite material is expected to findapplications in a broad range of industries such as oil, gas, aerospace and automobiles, as well as in medical
and consumer fields. At the same time, with their software algorithms enabling optimum strength and lightness
and their robot arms allowing for additive manufacturing from all directions, AREVO 3D printers can now
manufacture diverse product lines, including large-size and lightweight products that could not have been madeby conventional 3D printing technology.
In July 2017, Sumitomo Corporation Group founded a venture investment
fund under Sumitomo Corporation of Americas with an eye to utilizing its
experience and networks developed through Presidio Ventures, Inc., aventure capital firm it established in 1998. The recently established fundaims to expeditiously identify investment opportunities in early-stage
venture firms, thereby helping Sumitomo Corporation Group upgrade its
ongoing undertakings and develop new businesses. In November 2017, as
the first contract under this new system, we invested in TruTag
Technologies, a micro tag manufacturing venture. AREVO is one moresuch investment financed by the newly established fund.

AREVO 3D printer50

Sustainability of Sumitomo
Corporation Group

Environment

SocialGovernance

ESG quantitative data

Third-party assessment

Healthcare
The recent increase in healthcare costs as a result of increased elderly population has become a global social issue. In response, a rapid expansion of the healthcare
market is expected.
The Sumitomo Corporation Group will reinforce its efforts to develop new business models that lead to more effective management of medical costs through using
existing business infrastructure and functions, such as Tomod's chain of drugstores providing prescription dispensing services and generic drug manufacturers in the
U.S.; to expand digital health business using technological innovations, such as the internet of things (IoT) and artificial intelligence (AI); and to develop healthcare
infrastructure in emerging countries. To promote these efforts, we established the Health Care Business Department in April 2018 and also a company-wide working
group (WG) dedicated to a wide range of healthcare issues.
Business description
Participation in healthcare business
The Sumitomo Corporation Group is engaged in operating drugstores that provide
prescription dispensing services and in providing healthcare services. By widely
disseminating information on home health care and long-term care services andpromoting the use of such services, we contribute significantly to improving
access to better healthcare and people's quality of life.
Efforts in healthcare services business include investments in eWeLL Co., Ltd., acompany that develops and sells business support systems for visiting nursing
service providers, and Community Healthcare Coordination Platform, Inc. (CHCP),
which provides business support services to medical and nursing care providers
in 2017; and Integrity Healthcare Co., Ltd., which develops and sells online
medical consultation systems for medical institutions in 2018.
The iBow, offered by eWeLL, is a cloud service that enables users to manage
patient information from PC or tablet. It was developed in response to theincreasing importance of and need for visiting nursing services for the purpose of
reducing administrative burden on visiting nurses and improving the efficiency of
their services.
CHCP aims to create a new integrated community care system, in cooperation withhealthcare and nursing care providers, taking into consideration provision of funds,
business management expertise, and management personnel; establishment of acooperative system among healthcare and nursing care providers; and adoption of
cutting-edge technology and examples in other industries.
Integrity Healthcare Co., Ltd. offers the YaDoc telemedicine system, which
provides an environment where telemedicine by a physician is combined withaccumulated data on the daily health condition of the patient, based on which
treatment tailored to his/her needs is constantly available.

Through these business activities, we will continue to contribute to creating afoundation that ensures healthy living for people.

↑Business model of eWeLL

YaDoc Online Medical Consultation System↑

51

Sustainability of Sumitomo
Corporation Group

Environment

SocialGovernance

ESG quantitative data

Third-party assessment

Healthcare
Business description
Access to better healthcare and nutrition
In emerging and developing countries, there has been a rapid increase in the
demand for medicines due to increased population and economic development. In
many of these countries, however, many people are without sufficient access tohealthcare services and medicines due to poor social infrastructure and healthcare
environment, and for financial reasons. The Sumitomo Corporation Group has
made significant contributions to improving people's quality of life throughproviding comprehensive support to players in the pharmaceutical industry, fromupstream to downstream, which would not be possible without a global system
unique to an integrated trading company. We have also made efforts to makemore medicines available to the people in emerging countries.
At present, the world pharmaceutical market is worth about 127 trillion yen, of which
about 40% is accounted for by the US market. In the United States, while demand
for medicines is expected to rise as the elderly population is increasing, thegovernment has been working to reduce medical costs. In these circumstances, theuse of generic drugs is expected to grow. We have acquired a 20% stake in thegeneric pharmaceutical company Upsher-Smith Laboratories (USL), which is owned
by a US subsidiary of Sawai Pharmaceutical Co., Ltd., through Sumitomo
Corporation of Americas to enter the U.S. generic pharmaceutical business. USL isengaged in research and development, manufacturing and selling of generics. Its
strengths are excellent capabilities in product development, stable supply and sales,
and a customer base that have been built through years of business experience.
We take advantage of the strengths unique to integrated trading companies insupplying raw materials and launching new products in order to support USL's
business. We will provide high-quality generics to many patients through USL inorder to thereby contribute to people's mental and physical health.
In Brazil, Russia, Turkey and other so-called "medically emerging countries," thepharmaceutical market has been expanding significantly as their economy isdeveloping and living standards are improving. Their market growth rates haveexceeded the average growth rate of the global pharmaceutical market and are
expected to account for about a quarter of the world market in 2021. Sumitomo
Corporation will place emphasis on strengthening its relationships with local
pharmaceutical manufacturers in these medically emerging countries to promote
the introduction of biopharmaceuticals and other medicines and support in local
manufacturing on which each government places emphasis. Through these efforts,
we will be more active in contributing to people's health and better lives.

USL Head Office (Minnesota, USA)

Generic drugs

Drug discovery
supportCommercialization of cutting-edge technologies
The in vivo imaging system device marketed by Summit Pharmaceuticals
International Corporation (SPI) enables us to analyze the images of small- to mediumsized animals without killing or injuring them in basic research and the early stage ofdrug discovery. The device contributes to reducing animal experiments.
We provide information on the device and promote its sales in seminars andexhibitions at scientific conferences that are held for university laboratories andother academia, which are major customers of the device. The Sumitomo
Corporation Group has introduced cutting-edge technologies of the Medical
Research Council (MRC). Sir Gregory P. Winter, a professor at MRC Laboratory of
Molecular Biology, was awarded theNobel Prize in Chemistry 2018.
He shared the prize with two otherscientists for the development andapplication of "the phage display of
peptides and antibodies."
We support the pharmaceuticalindustry in these aspects to contributeto addressing social issues.
In Vivo Imaging Forum 201752

Sustainability of Sumitomo
Corporation Group

Environment

SocialGovernance

ESG quantitative data

Third-party assessment

Local infrastructure/community planning
Population growth and urbanization have been rapidly increasing around the world, mainly in emerging countries. In response, the Sumitomo Corporation Group isaccelerating its involvement in urban development and smart city projects and infrastructure construction business. We established the PFI Business Department and, in
April 2018, launched a new working group "Smart City WG" to place more emphasis on developing company-wide business projects.
Business description

Business description

Retail finance business in Indonesia

Telecommunications business in MyanmarWe, jointly with KDDI and Myanma Posts andTelecommunications (MPT), started telecommunications
services in Myanmar in September 2014.
The penetration rate of mobile phones in Myanmar in2014 was about 10%, which has increased rapidly toalmost 100% now. There is no difference in the useof smartphones among young people between in
Myanmar and Japan. As of the end of June 2018, thenumber of mobile phone subscribers of MPT was
about 30 million people and the company holds thehighest market share. We are making constant efforts
to deliver services of as high quality as those available
in Japan to the public in Myanmar, as demonstrated
by the swift deployment of fourth-generation wirelesstechnology (4G LTE). Through the joint business with
MPT, we are not only providing telecommunications
services but also hoping to share the benefits of an
information society with the people in Myanmar andcontribute to the development of industries.
The population of Myanmar is about 50 million. The
country has a land area of 680,000 square kilometers,
which is 1.8 times larger than that of Japan. It is
ethnically diverse, with more than 100 ethnic groups.
While there is a region with mountains as high as
6,000 meters, there is also a high precipitation region
where the rainy season lasts nearly six months a year
and floods occur every year. Roads, railways andother transportation infrastructure are still insufficient. It
sometimes takes unimaginable hardships to build
telecommunication network infrastructure throughout

Myanmar under these circumstances. To overcome
problems, we employ various measures and,sometimes, local wisdom to deliver our services to as
many people as possible in Myanmar. For example,
when
we
have
difficulties
totransport
telecommunications equipment through an area
without paved roads or a wetland area, sometimes wehave to ask elephants and water buffaloes.
Our aim is to achieve sustainable growth together
with Myanmar society through "establishing afoundation for comfortable and enriching lifestyles"
using
mobilephones;"providing
diverseaccessibility," which is essential to create future
value; and "contributing to the development of local
communities and industries" through job creation andnew business related to MPT eco-system.

The number of sales of new vehicles in Indonesia withthe population of about 260 million is one million
automobiles and more than seven million motorcycles.
This is one of the largest markets in ASEAN. We
provide financing services such as automobile loans
and motorcycle loans through PT Oto Multiartha andPT Summit Oto Finance, collectively as the OTO
Group. The OTO Group has a network of more than
200 branch offices throughout Indonesia, mainly inJava and Sumatra and has provided its services to a
cumulative total of more than eight million customers.
It helps secure transportation for a wide range ofincome groups to support local infrastructure.
In Indonesia, the middle-income population will keepincreasing and the current population of about 180
million is expected to reach 200 million in 2020. themarket is therefore also expected to expand. We willcontinue our support to help customers achieve
prosperity and dreams through automobile andmotorcycle financing business.

53

Sustainability of Sumitomo
Corporation Group

Environment

SocialGovernance

ESG quantitative data

Third-party assessment

Social Contribution Activities
Policy and concept

Activities

The Sumitomo Corporation Group fulfills its Management Principles and Activity
Guidelines as a global business group by working to resolve social issues
through its business activities and its social contribution activities with the aim ofbuilding a sustainable society.

The Sumitomo Corporation Group’s
Basic Principles on Social Contribution Activities
OBJECTIVE
We, as a global organization, will work on social issues through our businessactivities and social contribution activities with the aim of building a sustainable
society by implementing the Sumitomo Corporation Group’s Management
Principles and Activity Guidelines.

FY 2017 social contribution activity costs
Total social contribution activity costs (unit: million yen)
Head Office
and regionalorganizations
768

Consolidated
subsidiaries
788
Head Office operational
programs
198

Generaldonations/advertising, etc.
324

2017年度実績
FY 2017 results¥1,556
million1,556百万円

ACTIVITIESWe will engage in social contribution activities aimed at developing the next
generation of human resources who will drive the sustainable development ofsociety, 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.

Operation at localorganizations in Japanand abroad
246

APPROACH
We will perform and seek to continuously improve our activities with modesty andhigh aspirations and endeavor to maintain a high level of transparency whilestrengthening our relationships with all our stakeholders.

<Notes>*The values above were calculated using the inclusion criteria of the Keidanren One
Percent Club.
*The values above for local organizations and consolidated subsidiaries were calculated
based on questionnaire results.
*Values reported by overseas offices were converted to yen using the exchange rate as ofthe end of March 2017.

54

Sustainability of Sumitomo
Corporation Group

Environment

SocialGovernance

ESG quantitative data

Third-party assessment

Social Contribution Activities
Activities
Developing the Next Generation of Human Resources
The TOMODACHI Sumitomo Corporation Scholarship Program (since 2014)

The Sumitomo Corporation Scholarship (since 1996)

Sumitomo Corporation participates in the TOMODACHI
Initiative, a program of exchange between Japan and theUnited States led by the U.S. Embassy in Tokyo and the
U.S.-Japan Council (Japan).
We organize a scholarship program for university students
that are sent to the United 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 not available on
campus during an overseas study break.

We set up the Sumitomo Corporation Scholarship in
1996 as part of our 50th anniversary in the tradingbusiness. Since then, scholarships have been provided
to university students in Asian countries includingIndonesia, Myanmar, and Pakistan. In this way, we
support the development in emerging Asian countries ofhuman resources to build the nation’s future. Up to fiscal
2016, the 20th anniversary of its foundation, the numberof students who had received the scholarship totaled
roughly 16,000.

Contributing to Local Communities in Areas We Do BusinessSupporting the “Sankyu Thank You Project” (since 2013)

Activities to Introduce Japanese Culture (since 2015)

We support the “Sankyu Thank You Project” operated by
the Japanese Red Cross Society to protect infant’s lives insouthern and eastern Africa. The concept of the project isto protect the lives of as many African mother/infant pairs
as the number of babies born to our employees onmaternal or childcare leave. Sumitomo Corporation has
participated since 2013 through donations and visits to the
supported regions.

With the aim of building good relations with local
communities at overseas business bases, we givepresentations of traditional Japanese culture. Activities
took place in Myanmar in fiscal 2015, in Ghana andIran in fiscal 2016, and in Mexico and Cuba in fiscal
2017. Our employees visit the locality and give
demonstrations of kimono wearing, calligraphy, flower
arrangement, and other traditional arts. They alsoorganize hands-on workshops in which they deepen
contact with the numerous participants.

Assisting Reconstruction after the Great East Japan Earthquake
Sumitomo Corporation Follow-up Program for the Revitalization of East Japan (since 2017)
In the hope of aiding in the recovery of the areas hit by the Great East Japan Earthquake and the rebuilding of victims’ lives, we provided
support to young people involved in revitalization projects in eastern Japan for five years from fiscal 2012. However, numerous problems
remain. Conditions in the disaster-hit regions and people’s situations are constantly changing along with their support needs. To provide
ongoing reconstruction support that is closely tailored to local needs, we have revised the program to give more emphasis to in-depth
dialogue with grant recipients, drawing at the same time on our past support experience.

55

Sustainability of Sumitomo
Corporation Group

Environment

SocialGovernance

ESG quantitative data

Third-party assessment

Corporate governance
Policy and concept

SystemCorporate governance principles

System and features of corporate governance

Sumitomo Corporation established the “Sumitomo Corporation Corporate
Governance Principles” while keeping in mind that the backbone of our corporate
ethics is in “Sumitomo’s Business Philosophy” and “Management Principles.” The
Sumitomo Corporation Corporate Governance Principles were established basedon our view that the essence of corporate governance is “improving management
efficiency” and “maintaining sound management,” as well as “ensuring
management transparency” to secure the first two. Following the Sumitomo
Corporation Corporate Governance Principles, we are always seeking toestablish the most appropriate managerial system for the Company and arestrengthening our corporate governance to realize management that serves theinterests of shareholders and all other stakeholders.

We have adopted a company with Audit & Supervisory Board Member system, as
we believe that strengthening and enhancing this system is the most effectivemeans of improving the effectiveness of corporate governance. In addition, we
have appointed five Outside Directors with a view to ensuring appropriate
decision-making by the Board of Directors and further strengthening supervision.
Our “Medium-Term Management Plan 2020,” which began in fiscal 2018, also
includes initiatives for strengthening functions for monitoring by the Board of
Directors, such as more thorough reporting in relation to business portfolio
strategy, with the aim of further enhancing corporate governance.

Sumitomo Corporation Corporate Governance Principles

Corporate Governance Report

Standards for Appointment and Independence of Outside Directors andOutside Audit & Supervisory Board Members

56

Sustainability of Sumitomo
Corporation Group

Environment

SocialGovernance

ESG quantitative data

Third-party assessment

Corporate governance
SystemDirectors and the Board of Directors
Composition of the Board of Directors

Reasons for appointing outside directors

The composition of the Board of Directors ensures diversity in experience,
knowledge, expertise, gender, and so on. In June 2018, the number of Outside
Directors was raised from three to five (of which two are female), and thisincrease in the ratio of Outside Directors resulted in the further reinforcementof functions for supervising the execution of management.

We deemed the respective Outside Directors to be qualified for appointment
because of the experience stated below, which will contribute to appropriate
decision-making at meetings of the Board of Directors and further strengthensupervision.

Improvement of deliberation and enhancement of monitoring function at
the Board of Directors
We carefully select agenda items requiring discussion by the Board of
Directors so that the Board of Directors can concentrate on the deliberation ofimportant matters regarding the Companywide management such as thebusiness policy and management plan. At the same time, we have increased
the matters to be reported to the Board of Directors to make it possible for the
Board of Directors to concentrate more on supervising the execution ofoperations, so that the Board of Directors can enhance its monitoring function.
We have also established opportunities for free exchange of opinion before
decisions on important matters
Qualifications of outside directors and implementing regular meetingsfor exchanges of opinions
Our five Outside Directors satisfy the standards on independence set by Tokyo
Stock Exchange, Inc. (TSE), and other 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 andexpertise, each Outside Director contributes to our corporate governance by
providing a variety of independent viewpoints. In addition, Outside Directors
hold discussions and exchanges of opinions with the Chairman of the Board of
Directors, the President and Chief Executive Officer, Internal Audit &Supervisory Board Members, and Outside Audit & Supervisory Board
Members once a month, in principle.

Name

Reasons for appointing

Yayoi
TanakaHighly specialized knowledge and extensive experience accumulated
through long engagement in research in the fields of evaluation studies
and civil society organizational theory and the holding of a number of
positions on government committees, including the Administrative Reform
Promotion Council (private-sector member)

Nobuyoshi
Ehara

Wide-ranging knowledge and a wealth of experience in finance andbusiness management accumulated during many years of engagement ina major U.S. financial institution and the management of a private-equity
firm

Koji Ishida

Wide-ranging knowledge and a wealth of experience in finance andbusiness management accumulated during many years of engagement ina major financial institution and past position as a member of the Policy
Board at the Bank of Japan

Kimie Iwata

Wide-ranging knowledge and a wealth of experience in business
management, corporate governance, corporate social responsibility, anddiversity accumulated in managerial and outside director positions forprivate companies, before which she served in a succession of key
positions in the Ministry of Labour (now the Ministry of Health, Labour andWelfare) over the course of many years

HisashiYamasakiHighly specialized knowledge and a wealth of experience in law
accumulated over the course of many years as a judge and an attorney atlaw

57

Sustainability of Sumitomo
Corporation Group

Environment

SocialGovernance

ESG quantitative data

Third-party assessment

Corporate governance
SystemDirectors and the Board of Directors
Evaluation of the effectiveness of the Board of Directors
To maintain and heighten the effectiveness of the Board of Directors, each year Directors
and Audit & Supervisory Board Members analyze and evaluate its effectiveness throughthe use of self-evaluations etc. We disclosed a summary of the results. The evaluation ofeffectiveness of the Board of Directors and its results for fiscal 2017 is summarized below:
1.

Evaluation method(1)

Those covered: All members of the Board of Directors (nine persons) and Audit &Supervisory Board Members (five persons)(2)

Implementation method: Conducted using anonymous questionnaire from March to
April 2018.
Note: A third party (external consultant) was used in the conduct of the evaluation.

(3)

Items evaluated:(i)
Roles/responsibilities of the Board of Directors(ii)
Composition of the Board of Directors(iii) Roles of Directors and qualifications for appointment(iv) Administration of the Board of Directors(4)

Evaluation process: Questionnaire responses collated by the third party (external
consultant) were analyzed and the results reported to the Board of Directors.

2.

Overview of the evaluation results The results were generally positive for all of theitems evaluated. The external consultant commented that various reforms have been
made with the aim of realizing a more effective Board of Directors and that thesereforms have steadily produced results and that these efforts were also viewed
positively by the external executives. On the other hand, to achieve further
improvements in effectiveness, the evaluation identified issues such as further
enhancement of the deliberations of the Board of Directors and improvement of theinformation provided to Directors. Going forward, after discussion by the Board of
Directors, we will take initiatives to further improve the effectiveness of the Board.

Issues raised by the evaluation of the Board of Directors and key initiatives
to be taken
Issues that were raised in the Board of Directors’ evaluation for fiscal 2016 included
improving the quality of materials distributed at meetings of the Board of Directors andencouraging discussions among internal and outside directors. In fiscal 2017, measures tofurther improve the effectiveness of the Board of Directors were implemented in responseto these issues. The measures included creating a glossary to explain the terminology usedin materials distributed to the Board of Directors, and the continuance of giving a briefing
on discussion points from the Management Council before presenting an item fordeliberation by the Board of Directors. Meanwhile, the Nomination and Remuneration
Advisory Committee discussed ideas for a remuneration system and a set of performance
evaluation standards for Directors and officers taking into account incentives for mediumto long-term increase in corporate value and sustained growth. Based on the Committee’sreport, the Board of Directors resolved to revise the directors’ and officers’ remuneration
systems.

58

Sustainability of Sumitomo
Corporation Group

Environment

SocialGovernance

ESG quantitative data

Third-party assessment

Corporate governance
SystemDirectors and the Board of Directors

Management Council

Establishment of the Nomination and Remuneration Advisory Committee

Changing the Management Council to the decision-making body

The Nomination and Remuneration Advisory Committee, of which a majority ofmembers are Outside Directors, and which is also chaired by an Outside
Director, has been established as an advisory body to the Board of Directors.
This Committee nominates candidates for Director, Audit & Supervisory Board
Member, and Management Council Member (including deciding Representative
Directors and Executive Directors and nominating successors to the President
and Chief Executive Officer). In addition, the Committee discusses the structure
and level of remuneration and bonuses for Directors and Executive Officers, aswell as the revision of limits for remuneration of Audit & Supervisory Board
Members, and reports the outcome to the Board of Directors. In April 2018, a
new President and Chief Executive Officer was appointed by a resolution of theBoard of Directors that had received the report of the Committee. With theprevious President and Chief Executive Officer approaching the limit of his sixyear term as prescribed in the Sumitomo Corporation Corporate GovernancePrinciples, the Nomination and Remuneration Advisory Committee conducteddiscussions in relation to the qualifications of the new President and Chief
Executive Officer, as well as gathering and analyzing information andexchanging opinions in preparation for the nomination process. Having passed aunanimous resolution on a candidate for the new President and Chief Executive
Officer, the Committee made its report to the Board of Directors.

In July 2015, the Management Council was reorganized to become the highest
executive level decision-making body, with the aim of enabling decisions that take
into account diverse opinions and multifaceted discussions in regard to specific
key matters related to management, within the scope of the mandate conferredby the Board of Directors. The Management Council, which meets in principle
once a week, consists of the President and Chief Executive Officer, all chief
officers of the Corporate Group, and the general manager of each of the business
units. In addition, in regard to specific issues that are extremely important from a
Companywide perspective, the Company has established, as advisory bodies to
the President and Chief Executive Officer and to the Management Council,
committees such as the Company Investment Committee, the Medium-termManagement Plan Promotion Support Committee, the Internal Control Committee,
the Compliance Committee, and the Corporate Sustainability Committee.

Composition of the Nomination and Remuneration Advisory Committee

Total
Members

Internal Directors

OutsideDirectors

Committee
Chairman

5 persons

2 persons (President and Chief
Executive Officer, Chairman of theBoard of Directors)

3 personsOutsideDirector

59

Sustainability of Sumitomo
Corporation Group

Environment

SocialGovernance

ESG quantitative data

Third-party assessment

Corporate governance
SystemAudit & Supervisory Board Members and the Audit & Supervisory Board

Initiatives to Ensure Transparency of Business Management

Enhancement of auditing capabilities

Establishment of disclosure policy

In order to reinforce the audit function from an external perspective, three of the five
Audit & Supervisory Board Members are Outside Audit & Supervisory Board Members.
Of these, two are legal experts, and one is a specialist in accounting, such that theaudit system incorporates diverse perspectives. Moreover, our three Outside Audit &Supervisory Board Members satisfy standards on independence stipulated by TSE
and other financial instruments exchanges on which the Company is listed and our inhouse rules on Standards for Appointment and Independence of Outside Directors
and Outside Audit & Supervisory Board Members.

To ensure that all stakeholders correctly understand its business management policy andbusiness activities, the Company not only discloses statutorily required information but
also actively discloses information on a voluntary basis. Moreover, the Company
established the Corporate Disclosure Policy in July 2016.

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 theirresults in a timely manner. In addition, Audit & Supervisory Board Members exchange
information with and monitor the auditing activities of the accounting auditors throughregular meetings. By attending audit review meetings and observing inventory audits
with the accounting auditors, the Audit & Supervisory Board Members constantly work
to improve audit efficiency and quality. Furthermore, Audit & Supervisory Board
Members attend meetings of the Internal Control Committee and request reports on
the status of internal control systems from other departments responsible for internal
control, along with requiring their cooperation on audits.

Ensuring Audit Effectiveness

Disclosure policy
Measures relating to the General Meeting of Shareholders
We send out a Notice of Convocation to shareholders approximately three weeks prior
to each regularly scheduled General Meeting of Shareholders. For the convenience ofoverseas shareholders, we also provide an English-language translation of the noticeon our website in advance of sending a Notice of Convocation. We have allowed ourshareholders to exercise their voting rights via the Internet using personal computers
since 2004 and via the Internet using mobile phones since 2005. In 2007, weintroduced the Electronic Voting Platform operated by Investor Communication Japan,
Inc. (ICJ) a body established by TSE and other parties. The new platform allows
institutional investors sufficient time to thoroughly examine the propositions to beresolved at the meeting. In addition, we stream video of the General Meeting of
Shareholders on our website for a period of one year after the close of the meeting.

Ordinary General Meeting of Shareholders

Audit & Supervisory Board Members attend meetings of the Board of Directors and allother important internal meetings, to obtain the information necessary for proper
auditing. Audit & Supervisory Board Members also meet the Chairman of the Board of
Directors and the President and Chief Executive Officer, in principle once a month, toexchange opinions on material issues regarding management policy and auditing.
Moreover, the Audit & Supervisory Board Members’ Administration Department is
assigned to assist Audit & Supervisory Board Members, so that the auditing system
functions effectively and without hindrance.

60Sustainability of Sumitomo
Corporation Group

Environment

SocialGovernance

ESG quantitative data

Third-party assessment

Corporate governance
SystemRemuneration of Directors and Audit & Supervisory Board Members
The details of the structure and level of remuneration and bonuses for Directors,
as well as the limits for remuneration of Audit & Supervisory Board Members,
are evaluated by the Nomination and Remuneration Advisory Committee, anadvisory body to the Board of Directors of which a majority of members are
Outside Directors, and which is chaired by an Outside Director. The Committee
reports the results of its deliberations to the Board of Directors. In this way westrive to further improve the transparency and objectivity of remuneration. Basedon these reports, the specific composition and decision methods related toremuneration have been established as follows.

Remuneration ratios and levels
 In order to strengthen incentives for corporate performance based on
management strategies, and improved corporate value over the medium tolong term, the ratio of fixed compensation to variable compensation is set toan appropriate level.
 Referring to objective market survey data on remuneration provided byexternal specialist institutions, appropriate remuneration levels are set after
considering the management environment of the Company.

Director remuneration (excluding that of the chairman of the Board of
Directors and outside directors)
With the goal of enhancing the corporate governance of the Sumitomo
Corporation Group and enhancing the corporate value of the Company over the
medium to long term, the following has been established in order to implement a
remuneration system that supports sustainable growth in line with management
strategies.

*

This chart is a hypothetical impression computed on the basis of a prescribed corporate
performance and the share prices of the Company’s stock, with the aforementioned
ratios subject to fluctuation pursuant to changes in corporate performance and theCompany’s share price.

Basic policy
 By setting an appropriate ratio of fixed compensation (monthly remuneration) tovariable compensation (performance-linked bonuses reflecting short-term results, andstock compensation keyed to medium- to long-term results and shareholder value), theremuneration system provides a sound incentive toward sustainable growth.
 Through strengthening the relationship between performance-linked bonuses and the
management strategies of the Sumitomo Corporation Group, we encourage theexecution of duties compatible with management strategies and generate strong
motivation to achieve specific management goals.
 With regard to a stock compensation plan, by further reinforcing the linkage toshareholder value, we promote initiatives to enhance corporate value over the medium
to long term, and deepen the sharing of values with shareholders.

Remuneration System for Executive

61

Sustainability of Sumitomo
Corporation Group

Environment

SocialGovernance

ESG quantitative data

Third-party assessment

Compliance
Policy and concept
The basis for the Sumitomo Corporation Group's compliance is to win the trustof society by practicing the Activity Guideline that states "to comply with laws
and regulations while maintaining the highest ethical standards."
Accordingly, we follow our principles of "Giving First Priority to Compliance,"
which means compliance takes priority over all activities of the Group and that
we must never violate compliance as a result of giving priority to the pursuit ofprofit, and "Reporting Compliance Issues Immediately," which means, in theevent of a compliance problem, employees must report the situation without
delay to their line manager or to the relevant department of the Corporate Group.

SystemAiming for more agile responses to compliance issues which arise in the Group,
Sumitomo Corporation appoints a Chief Compliance Officer (CCO), who has
ultimate responsibility for compliance. Further, the Compliance Committee,
which plans compliance measures, includes the general managers not only of
the Corporate Group but also of the business divisions, enabling it to examinesuch measures in a multifaceted way that reflects our actual business
operations.
Our Group will continuously aim to establish and improve the internal systems
that realize our principle of "Giving First Priority to Compliance."

Speak-Up System
Our internal rules stipulate that any issues or potential issues in relation tocompliance must be reported immediately. Such issues include not only theviolation of antitrust/competition laws or anti-bribery/corruption laws but also
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.
Under the System, the fact and details of the report are maintained in the strictest
confidence, and it is ensured that the whistle-blower is not subject todisadvantageous treatment for making the report. Furthermore, in order toencourage the use of the System, seminars for officers and employees as well asinternal guidelines are provided. Additionally, "Speak-UpCards" with an overview
of the System as well as the contact details for the hotline are distributed to all
officers and employees, and posters are put up on all floors of our office to raiseawareness of the System.

62

Sustainability of Sumitomo
Corporation Group

Environment

SocialGovernance

ESG quantitative data

Third-party assessment

Compliance
Activities
Appropriate responses to compliance violations and preventive measures

Anti-bribery/corruption initiatives

In case of a compliance problem, the Company, primarily through the Legal Dept. andLegal Compliance Dept., promptly takes steps to establish the facts and clarify thecauses of the incident, including the appointment of external specialists whennecessary. Based on the outcome, we take corrective measures, disciplinary action,and preventive measures.
The Compliance Committee Secretariat keeps records of the details and number ofcases occurring in the Group, and other information such as measures taken toprevent recurrence. These are evaluated and used to plan future compliancemeasures. The results are deliberated at meetings of the Compliance Committee, andreports are made periodically to the Management Council and the Board of Directors.
Through this process of repeatedly improving and enhancing such measures, we
strive to further encourage thorough compliance throughout the Group.

Based on the principle of "Giving First Priority to Compliance," the Group implements
strict measures to prevent all forms of corruption. Specifically, we have established
the Rules for Prevention of Bribery of Public Officials, which regulates the provision ofentertainment, gifts, invitations, and donations to domestic and foreign public officials
as well as the selection of agents. In addition, taking into account revisions to the laws
and regulations of each country, and advice from various external specialists, we
continuously review our internal rules and guidelines. Further, we extend these rules
and guidelines to overseas offices and Group companies, and we also offer ongoing
employee education and work constantly to prevent bribery and corruption.
In 2017, we announced the Sumitomo Corporation Group Anti-Corruption Policy,
which summarizes the Group's principles and policies in this regard. This Policy
includes the following 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 as a principle prohibit its officers and employees fromproviding such officials with entertainment, gifts, or the equivalent. It will not make any
offer, payment, promise to pay, or authorize the payment of any money or anything ofvalue to any foreign government or other public official, for the 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 theirunderstanding and cooperation.

Continuous education program initiatives
We have summarized into 19 separate themes the issues that we consider important,such as antitrust, security trade control, and anti-bribery/corruption, and we havedisclosed our policies regarding these in the form of our Compliance Guiding
Principles. The Compliance Manual, which adds commentary on the Principles, andsummarizes the laws, regulations, and internal rules on which it is based, is distributed
to all employees of Sumitomo Corporation.
Furthermore, both in Japan and overseas, we implement various education programsfor each class of employee, such as newcomers, newly appointed general managers,
and newly appointed corporate officers, as well as provide e-learning programs for all
employees. In addition to these regular activities, we hold seminars and training
sessions on an ongoing basis as required.

Measures for ensuring compliance with laws concerning antitrust and fair competition

We stipulate our policy for compliance with laws concerning antitrust and faircompetition in the Compliance Guiding Principles as well as the Compliance Manual.
We have also published a separate manual concerning antitrust/competition laws forour officers and employees that compiles key considerations in daily dealings.
Additionally, we endeavor to ensure that antitrust/competition laws are observed bymeasures such as regularly holding internal training courses.

63Sustainability of Sumitomo
Corporation Group

Environment

SocialGovernance

ESG quantitative data

Third-party assessment

Compliance
Activities
Security trade control and logistics compliance
As an integrated trading company, Sumitomo Corporation regularly implements
various measures to ensure that we comply with treaties and internationalframeworks related to international trade, as well as Japanese laws andregulations related to trading activities. Our group companies do likewise. We
implement various measures related to security trade control to prevent weapons
or products and technology for civilian use that could be converted to military use
from falling into the hands of states or non-state organizations (terrorists) which
may develop weapons of mass destruction. We also provide internal rules,
manuals, and guidelines, hold training sessions, and instruct and monitor asneeded to ensure compliance with regulations related to tariffs and customs aswell as those related to public order and safety.
Prevention of insider trading
To prevent violations of insider trading regulations related to our businessactivities as well as personal dealings by officers and employees, our company
has established "Rules for Prevention of Insider Trading" as well as internal
checking systems from various perspectives. To ensure compliance with insider
trading regulations as well as internal rules, we also continuously provide internal
training courses and other activities to raise awareness. In 2017, we held aninternal training program for general managers to remind the importance ofappropriately managing insider information at each organization.

64

Sustainability of Sumitomo
Corporation Group

Environment

SocialGovernance

ESG quantitative data

Third-party assessment

Social and environmental risk management
Risk management system
The business activities of the Sumitomo Corporation Group impose various impacts
on the global environment, local communities, customers, executives and employees,
and various other stakeholders. In order for us to maintain sustainable growth, it isnecessary to appropriately manage the impacts posed by our activities to avoid risks
that threaten the global environment and people's lives and, furthermore, thesustainability of our business. Companies are expected to proactively contribute toaddressing social and environmental issues. In response, we have to pay carefulattention not only to our activities but also to the impacts posed by our entire supply
chains on the society and environment.
There are an extensive variety of issues associated with these impacts that weshould pay particular attention to, including biodiversity, pollution, water resources
depletion, human rights, safe and hygienic labor conditions. There are also
differences depending on the products dealt with, business types, areas where
activities take place, and other factors. The Sumitomo Corporation Group is
engaged in a wide variety of business activities in different countries and regions.
With this in mind, we have a company-wide framework not only for onsite
management of each business but also for clarification of the company-wide policies,
comprehensive monitoring, internal auditing, supervision by executives and directors,
and other relevant activities.
The Group has developed and publicized its policies related to social andenvironmental issues, such as the Environmental Policy, CSR Action Guidelines for
Supply Chain Management, Anti-Corruption Policy, and Compliance Guiding
Principles. With regard to individual business projects, in conducting due diligence
for a new investment, we use environmental consultants and specialists in humanrights and labor issues, depending on the nature of each business, to confirm
whether there are any adverse impacts of business activities on society and theenvironment. For the purpose of enhancing Group governance, which is included in
the Medium-Term Management Plan 2020, we have adopted a system to improve
internal control through regular monitoring of the current state of management ofeach Group company's risks, including environmental issues, human rights issues,labor management and supply chain management, jointly with the businessorganizations in charge and relevant corporate organizations, through dialogues witheach associated company.
When we receive information on adverse impacts associated with our company's
business activity from local residents, NGOs or other stakeholders, the businessorganization in charge and corporate organizations involved will jointly respond to theissue. They discuss measures to improve the identified situation and implement them.
Reported risks concerning social and environmental issues are discussed by a relevantinternal committee. The committee then reports the discussed risks to executives anddirectors so that they can understand and supervise the relevant issues.

Monitorby management /directors

Define Direction of Entire company
Environmental Policy, Supply Chain CSR Action
Guidelines for Supply Chain Management, AntiCorruption Policy, Compliance Guiding Principles.

Environmental/Social Due Diligence on
New Investments
Internal audit

Legal DD, human rights/environmental DD

Onsiteself-management

Monitoring System for Group Companies
Management of the environment, human rights andlabor issues, and supply chains
Respond accordance with international standards

Respond to the input from outside /improvement on management
Respond jointly by business and corporate groups

Support by
Corporate

65

Sustainability of Sumitomo
Corporation Group

Environment

SocialGovernance

ESG quantitative data

Third-party assessment

Social and environmental risk management
Monitoring of Group companies including ESG risks
As part of our group governance commitment, we have adopted a systemfor periodic monitoring of the management of various risks of each Group
company. Risks associated with environmental and social issues differ
from company to company depending on the business activities andareas where activities take place. For this reason, it is difficult to apply
unified management standards and guidelines. We have therefore
identified a common standpoint, based on which we ensure risk
management that takes into account each company's business activities
and risk levels.
What is most important is that each company fully understands thecharacteristics of their business activities and the area where they arelocated, the relationship between their activities and social andenvironmental issues, and their own risks. When addressing the issues
they are facing, it is important not only to comply with laws and regulations
but also take into account international standards on the environment andhuman rights. It is not enough to merely have a system. It is necessary toactually pay attention to whether or not there are any problems occurring in
local communities, with employees and other stakeholders. It is also
necessary that there is a communication route available for a stakeholder
with a problem, if any, to let others know about it.
The Sumitomo Corporation Group consists of several hundreds Group
companies, which are engaged in business activities in different
environments and are facing different social issues. We consider it
possible to appropriately manage the entire Sumitomo Corporation Groupby repeating a cycle as follows: Each Business Unit monitors each Group
company's risks through communication with it and in cooperation with
relevant Corporate Group organizations, and makes improvements, if
necessary, where executives and directors serve as supervisors.
Socially sustainable growth has become a common global theme. In
response, companies should pay more careful attention to the
management of their impacts on society and the environment to meetstrict standards. We will continue our efforts to improve the level of ourcompany-wide risk management through fully understanding the risk
profile of the overall portfolio of our company using not only the risk
management cycle for individual business activities but also knowledge
from outside sources.

Recognitionof risks

Risk management taking into accountthe actual conditions of each company

Biodiversity

Water use

Characteristics ofGroup companies

Forced labor

Products

Discrimination/
Harassment

Industries
Utilization ofPrecious Resources

International
standards

Nations/
Regions

Labor
Health and Safety
Supply chain
management

Pollution
Dissimilar risks

Recognition of facts

Dialogue with stakeholders

66Sustainability of Sumitomo
Corporation Group

Environment

SocialGovernance

ESG quantitative data

Third-party assessment

Information security
Policy and concept
The Company acknowledges the importance of ensuring information security, andmaintains appropriate measures including, but not limited to, the establishment
and maintenance of relevant rules, primarily through the Information Security
Committee, which is chaired by the Chief Information Officer (CIO). In October
2017, a new Information Security Policy was established.

Information Security Policy
1.

Recognition of Information Security

Sumitomo Corporation acknowledges the importance of ensuring information security,
and wishes to further enhance the company's trustworthiness in its business
operations. Therefore, Sumitomo Corporation shall implement appropriate measures
including, but not limited to, the establishment and maintenance of relevant rules andguidelines so as to responsibly manage information assets on a consolidated basis
globally and shall review them regularly.

2.

SystemThe information managers in each organization categorize information assets
based on their importance, give instructions for procedures and methods in orderto handle these assets adequately, and work to ensure information security,
efficient information-related administrative procedures, and information sharing.
For personal information, in addition to establishing a Privacy Policy to protect
this as appropriate, we have put in place relevant rules and organizational
structures. 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 system-based safeguards,
we conduct ongoing training and drills for employees while establishing andmonitoring systems at major subsidiaries and other Group entities. The Company
also coordinates with specialized third-party organizations to stay up-to-date on
relevant information and to enable swift and appropriate responses.

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 throughresponsibly managing all information assets including personal data, and shall takeall reasonable precautions in order to prevent unapproved disclosure, loss or
impairment of such data.

4.

Response to Information Security Incidents

Whilst making the utmost endeavour 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
are necessary 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 theawareness of the importance of responsibly managing information assets.

Privacy Policy

67

Sustainability of Sumitomo
Corporation Group

Environment

SocialGovernance

ESG quantitative data

Third-party assessment

Stakeholder engagement（IR: Investor Relations SR: Shareholder Relations）

Relationships with stakeholders

IR/SR Activities

The Sumitomo Corporation Group places importance on dialogue with various
stakeholders 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 ofstakeholders' expectations and concerns, based on which we will promote oursustainability and improve our long-term value.

We facilitate direct communication with shareholders and other investors, inaddition to enhancing disclosure on our website. An executive officer withresponsibility for dialogue with shareholders and other investors exercises overall
control of and coordinates such IR* initiatives shown below. Also, related inhouse departments contribute to IR initiatives by distributing information andcollecting feedback from shareholders and other investors. Going forward, theCompany will continue to increase the transparency of its management,
implementing fair disclosure at all times, integrating financial and non-financial
information, and strengthening relationships of trust with shareholders andinvestors by displaying initiatives to increase the corporate value of the Sumitomo
Corporation Group over the medium to long term.

Shareholder/investors

Financial
institutions

Government
agencies/
economicorganizations

Local
communities

Sumitomo
CorporationGroup

NGOs/NPOs

Business
partners

Customers/
consumers

Employees

Stakeholders

Major means of dialogue

Stakeholders/investors
Financial institutions

General meeting of shareholders, IR meeting, integrated report, annual
securities report, business report for shareholders, website, reporting tocredit rating agencies, etc.

Government
agencies/economic
organizations

Communication with government agencies and international organizationsin Japan and abroad, participation in discussion meetings and round-tableconferences with government offices, activities through business andindustrial associations, etc.

Local communities

Dialogue with local residents in business activities and support forcommunities, social contribution activities, etc.

Business partners
Customers/consumers

Integrated report, website, advertisements, customer information office,supply chain survey, etc.

NGOs/NPOs

Cooperation and communication with NGOs and NPOs in businessactivities, cooperation in social contribution activities, responses tosurveys, etc.

Employees

Internal magazine, Intranet, training sessions and seminars,
labor/management round-table meeting, employee awareness survey, thespeak-up system, etc.

68

Sustainability of Sumitomo
Corporation Group

Environment

SocialGovernance

ESG quantitative data

Third-party assessment

ESG quantitative data
Environment (Climate change)
Item
（※2）

CO2 Emissions

Non-consolidated

Scope
Head office, regional offices,branches and sub-branches in Japan and overseas

Unit

FY 2015

Domestic and overseas consolidated subsidiaries

t-CO2

5,670

5,190

4,926

806,4902,095,089

24,549811,679

2,100,015

0.074

0.066

0.062

Logistics

8,971

7,420

7,803

Waste

11

11

6

26,34826,51828,569

Total
Intensity（per ㎡）
CO2 Emissions（Scope3）

Overseas Business Trips

Head office, regional offices, branches and sub-branches in Japan

Head office, regional offices, branches and sub-branches in Japan

t-CO2/m2

t-CO2

CommutingDownstream Leased Assets
Energy Consumption

Non-consolidated

Head office, regional offices,branches and sub-branches in Japan and overseas

Consolidated subsidiaries

Domestic and overseas consolidated subsidiaries

GJ

Total

Electricity Consumption

FY 2017

18,879Consolidated subsidiaries（※3）

FY 2016

Intensity（per ㎡）

Head office, regional offices, branches and sub-branches in Japan

Non-consolidated

Head office, regional offices,branches and sub-branches in Japan and overseas

Consolidated subsidiaries

Domestic and overseas consolidated subsidiaries

GJ/m

2

MWh

Total
Intensity（per ㎡）

Head office, regional offices, branches and sub-branches in Japan

MWh/m

2

815

751

709

36,39835,14836,894ー

50,69348,472ー

8,009,967

22,496,811

ー

8,060,660

22,545,283

ー

0.663

0.611

8,429

8,134

7,536

35,179456,169

1,527,811

43,608464,3031,535,347

0.107

0.105

0.098

(*1） In the data above, the CO2 emissions, energy consumption and electricity consumption for FY 2015 are those of offices only, and for FY 2016 and FY 2017 are those of all sites, including manufacturing sites. Energy consumption started to be included from FY 2016.
(*2） CO2 emissions derived from electricity consumption were calculated using the CO2 emission factors of electric power below:(In Japan) Head Office, regional offices, branches and sub-branches in Japan: For FY 2015, average of all power sources/receiving ends; For FY 2016 and later, the actual immediate emission factors by power company; Corporations/associated companies in Japan: average ofall power sources/receiving ends
(Overseas) Overseas branches/offices, overseas corporation/associated companies: Emission factors by country in 2013 specified in the CO2 Emissions from Fuel Combustion 2016 edition issued by International Energy Agency (IEA);
To calculate CO2 emissions derived from fuel and heat, the CO2 emission factor specified in the Greenhouse Gas Calculation and Reporting Manual issued by the Ministry of the Environment and the Ministry of Economy, Trade and Industry was used.
(*3） CO2 emissions (Scope 3) were calculated and tabulated as follows:・ Domestic transport/consignor: CO2 emissions of domestic transport with Sumitomo Corporation as consignor are tabulated according to the Greenhouse Gas Calculation and Reporting Manual issued by the Ministry of the Environment and the Ministry of Economy, Trade andIndustry.
・ Waste: CO2 emissions from incineration of all the general wastes from business activities of Sumitomo Corporation were calculated using the emission factor published by the CFP (Carbon Footprint) Communication Program.
・ Overseas business trips: Flights to and from Japan used by executives and employees of Sumitomo Corporation alone were included. Destinations were divided into 12 areas and, based on the distance to a representative airport of each area, person-kilometer was tabulated.
・ Commuting: Executives and employees of Sumitomo Corporation alone were included. Calculation was made using the emission factors per person-kilometer by means of transportation of passengers specified in the CO2 Emissions in the Transport Sector published by the
Ministry of Land, Infrastructure, Transport and Tourism.
・ Downstream leased assets: Energy consumption of buildings owned by Sumitomo Corporation and leased to tenants was calculated using the emission factor specified in the Act on the Rational Use of Energy.

69Sustainability of Sumitomo
Corporation Group

Environment

SocialGovernance

ESG quantitative data

Third-party assessment

ESG quantitative data
Environment (Resources and waste)
Item
Waste Emissions

Non-consolidated
Consolidated subsidiaries

Scope
Head office, regional offices,branches and sub-branches in Japan and overseas

Unit

Domestic and overseas consolidated subsidiariest

FY 2015

Total
Intensity（per employee）

Head office, regional offices, branches and sub-branches in Japan

Recycled Waste Emissions

t/employee

FY 2016

FY 2017

361

342

191

1,153

1,091

46,005

1,514

1,433

46,196

0.083

0.081

0.043

322

311

168

20

14

2

94.2

95.8

98.8

4.67

4.84

3.32

0

0

0

t

Non-recycled Waste Emissions（final waste disposal volume）

Head office, regional offices, branches and sub-branches in Japan

Recycle Ratio%

Hazardous Waste Emissions
Air Pollutant Emissions（Nox：nitrogen oxide、Sox：sulfur oxide、
VOC：volatile organic compound）

Head office, regional offices, branches and sub-branches in Japan

Paper Consumption

Non-consolidated

Head office, regional offices, branches and sub-branches in Japan

1,000 sheets

28,97525,681

22,280Intensity（per employee）

Head office, regional offices, branches and sub-branches in Japan

1,000 sheets/employee

7.000

6.451

5.604

t

Environment (Water )Item
Water Consumption

Non-consolidated
Consolidated subsidiaries

Scope
Head office, regional offices,branches and sub-branches in Japan and overseas

Unit

Domestic and overseas consolidated subsidiaries

m³

Head office, regional offices, branches and sub-branches in Japan

m3/employee
m³

Total
Intensity（per employee）
Waste outflow（Sewage volume）(*1)

Head office

FY 2015

FY 2016

FY 201728,262

25,463

21,609167,491

160,481130,799,605

195,753

185,944

130,821,214

5.975

5.540

4.883

17,477

16,382

15,743

The waste emissions and water consumption for FY 2015 and FY 2016 are those of offices only, for FY 2017 are those of all sites, including manufacturing sites. The results of FY 2015 and FY 2016 are those of direct consolidated subsidiaries, and theresults of FY 2017 are those of both direct and indirect consolidated subsidiaries.

70Sustainability of Sumitomo
Corporation Group

Environment

SocialGovernance

ESG quantitative data

Third-party assessment

ESG quantitative data
Environment (Resources and waste)
Item
Environmental accounting

Scope

FY 2015

FY 2016

FY 2017

Costs to reduce environmental impacts caused
within business areas

596,636

1,708,681

2,277,242(Breakdown)i. Pollution prevention cost

Costs to prevent pollution, such as air pollution,water contamination, soil contamination, noise
pollution, vibrations, offensive odor, and land
subsidence

68

37,922

20,848ii. Global environmental
conservation cost

Costs for global environmental protection efforts,such as global warming prevention, energy saving,and ozone layer preservation

589,468

1,662,700

2,249,351

iii. Resource circulation cost

Costs associated with resource circulation efforts,such as effective use of resources, recycling ofindustrial and general wastes, and other methods ofprocessing and treating industrial and general wastes

7,100

8,059

7,043

400

114

182

375,392

354,362

369,482

118,071319,591

374,562

12,294

17,456

16,034

284

272

270

1,103,077
7,490
57
1,217
28,975857
726
82,400,476
7,278
212
4,105
25,681
3,294
2,802
8

3,037,773
6,797
481
9,818
22,280
3,401
2,871
7

%

100

100

100

case

0

0

0

yen

0

0

0

Upstream/downstream cost

Environmental conservation cost to reduce
upstream and downstream environmental impacts

Managerial activity cost

Costs for measures for indirect contribution to
reducing environmental impacts and for promoting
communication with society, such as disclosure ofenvironmental information

Research and development costSocial activity cost

Environmental Conservationand Economic Benefits

Unit

Business area cost

Environmental damage
response cost
Total
Electricity Consumption

Paper Consumption

ISO 14001

1000 yen

Costs for environmental protection in research anddevelopment activities
Costs for environmental protection in social activities
that are not directly related to business activities
Costs incurred to respond to damage caused bybusiness activities on the environment
Consumption
Environmental Conservation Benefits
Economic Benefits
Consumption
Environmental Conservation Benefits
Economic Benefits
Number of ISO 14001-certified offices
Ratio of ISO 14001-certified offices

Violations of environmental laws and regulations(penalties of one million yen or more, etc.)

Head Office,regional offices,branches and subbranches in Japan

Number of violation cases
Amount of penalties

Head Office,regional offices,branches and subbranches in Japan
Head Office,regional offices,branches and subbranches in Japan
Head Office,regional offices,branches and subbranches in Japan

MWh
MWh
1,000 JPY
1,000 sheets
1,000 sheets
1,000 JPY
site

71

Sustainability of Sumitomo
Corporation Group

Environment

SocialGovernance

ESG quantitative data

Third-party assessment

ESG quantitative data
Society (Personnel data)
Item

Scope

Unit

Consolidated

personNumber of employees
Number of temporary employees
Number of employees [Male/Female]

Male
FemaleNon-consolidated

personTotal
Number of new employees

MaleFemaleNon-consolidated

personTotal

FY 2015

FY 2016

FY 201766,86070,90073,016

20,313

20,46525,619

4,039

3,984

3,907

1,165

1,178

1,184

5,204

5,162

5,091

108

102

107

47

51

50

155

153

157

Ratio of female new employees

Non-consolidated

%

30.3

33.3

31.8

Ratio of non-fulltime employees, such as contract and temporary employees

Non-consolidated

％

11.2

10.1

9.2

5

8

7

2

0

1

7

8

8

Number of mid-career employees

MaleFemaleNon-consolidated

personTotal
Employment rate of disabled persons
Number of managers

Non-consolidated%

Male
Female

2.21
2,599

143

153

person

107
2,718

2,776

2,752

Non-consolidated

%

3.94%

5.15%

5.6%

Non-consolidated

%

56.5

56.4

57.6

19.3

19.1

19

15.6

15.8

16.1

Overall mean

18.4

18.3

18.3

Male

1.6

2.3

2.3

3

2.7

2.6

1.9

2.4

2.4

Total

Ratio of employees who are covered by a collective bargaining agreement
Male
FemaleTurnover rate of full-time employees

2.11
2,633

Non-consolidated

Ratio of female Managers

Average length of service (years)

2.14
2,611

FemaleTotal

Non-consolidated

Non-consolidated

year/person%

72Sustainability of Sumitomo
Corporation Group

Environment

SocialGovernance

ESG quantitative data

Third-party assessment

ESG quantitative data
Society (Work styles)
Scope

Unit

Average monthly overtime hours

Item

FY 2015

FY 2016

FY 2017

Non-consolidated

hours/minutes

Average annual days of paid vacation acquired

Non-consolidated

day

10.9

12.7

14.3

Spouse maternity leaveNon-consolidated

case

80

76

74

Leave to look after a sick child

Non-consolidated

case

161

200

215

Number of employees who took family care leaveNon-consolidated

person001

Non-consolidated

person

57

71

79

184

192

158

Non-consolidated

person

49

49

66

Total

233

241

224

Male

2

5

2

12 hours 41 minutes 11 hours 50 minutes 9 hours 12 minutes

Number of employees who took maternity leave

Number of employees eligible for child care leave

Male
FemaleNumber of employees who took child care leave

FemaleNumber of employees who returned to work after taking
child care leave

49

49

66

Total

51

54

68

Male

2

5

0

35

49

36

37

54

36

FemaleNon-consolidated

Non-consolidated

personpersonTotal
Ratio of employees who returned to work after taking child care leave

Male
FemaleNon-consolidated%

Number of individuals using shortened work hour system

Non-consolidated

personNumber of cases of violations of the Labor standards Act

Non-consolidated

case

Total

100

100

ー

97.2

90.7

92.3

97.4

91.5

92.3

99

121

129

2

4

1

73

Sustainability of Sumitomo
Corporation Group

Environment

SocialGovernance

ESG quantitative data

Third-party assessment

ESG quantitative data
Society (Occupational safety and health)
Scope

Unit

Number of occupational accidents

Item
Employees (full-time)Non-consolidated

personFY 2015
3

FY 2016
1

FY 20172

Number of deaths by occupational accidents

Employees

Non-consolidated

person000Society (Human resources development)
Item

Ability development training

Scope
Total number of lectures
Number of employees participating in
training

Unit

FY 2015

FY 2016

FY 2017session

320

321

326

person12,351

11,868

11,81854,951

59,71862,967

10.6

11.6

12.4

1,099

1,112

1,101

Non-consolidated

Total hours of training received
hour
Average hours per employee
Number of employees dispatched overseas

Non-consolidated

personNumber of employees undergoing training overseas

Non-consolidated

personAnnual education and training cost per employee

Non-consolidated

yen

97

82

94

531,706

518,882

478,884

Society (Social contribution)
Item
Expenditure for social contribution activities
Number of employees who used the volunteer leave program

Scope

Unit

Consolidated

million yen

Non-consolidated

personFY 2015

FY 2016

FY 2017

1,130

1,549

1,556

4

3

3

74

Sustainability of Sumitomo
Corporation Group

Environment

SocialGovernance

ESG quantitative data

Third-party assessment

ESG quantitative data
Governance (Board of Directors, Audit & Supervisory Board, Advisory Committee)

Number of Directors (*1)

Item
Inside directors

Independent
outside directors

Scope

Unit

FY 201710

6

Female

0

0

0

Total

10

10

6

2

3

2

1

1

1

3

4

3

13

14

9

%

8

7

11

time

Male
FemalepersonNon-consolidated

Total
Ratio of female Directors (*1)

Number of Board of Directors meetings
Inside Audit &Supervisory Board
members

FY 2016
10

Total

Number of Audit & Supervisory (*1)

FY 2015

Male

17

18

21

Male

2

2

2

Female

0

0

0

Total

2

2

2

3

3

3

0

0

0

3

3

3

5

5

5

1

1

1

16

15

14

Male

2

2

2

Female

0

0

0

Total

2

2

2

2

2

2

1

1

1

3

3

3

5

5

5

Independent outside Male
Audit & Supervisory
FemaleBoard members

Total

personNon-consolidated

Total
Number of outside Audit & Supervisory Board memberswith expertise in financial affairs and accounting (*1)
Number of Audit & Supervisory Board meetings
time
Nomination and Remuneration
Advisory Committee (*1)

Inside members

Independent
outside members

Male
FemalepersonNon-consolidated

Total
Total
Ratio of outside directors in the Nomination and Remuneration Advisory Committee (*1)

%

60

60

60

Number of Nomination and Remuneration Advisory Committee meetings

time

2

5

6

(*1) Figures at the end of June of each fiscal year75

Sustainability of Sumitomo
Corporation Group

Environment

SocialGovernance

ESG quantitative data

Third-party assessment

ESG quantitative data
Governance (Remuneration)
Item
Remuneration of Directors

Directors(Excluding outside directors)

Outside directors

Remuneration of Audit &Supervisory Board members

Unit

FY 2017
530

Bonus for Directors

67

149

174

Stock options

90

79

64

Total

843

895

769

Non-consolidated

million yen

34

47

41

Bonus for Directors

－

－

－

Stock options

－

－

－

Total

34

47

41

87

86

86

－

－

－

Stock options

－

－

－

Total

87

86

86

Monthly remuneration

35

34

38

Bonus

－

－

－

Stock options

－

－

－

Total

35

34

38

Non-consolidated

499

493

495

Consolidated subsidiaries

575

565

508

1,074

1,058

1,003

Non-consolidated

Total
Fees for non-auditing services

FY 2016
667

Inside Audit & Supervisory Board members Monthly remuneration(Excluding Outside Audit & Supervisory
Bonus
Board members)

Fees for auditing services

FY 2015686

Monthly remuneration

Outside Audit & Supervisory Board
members

Audit fees
(KPMG AZSA LLC)

Scope
Monthly remunerationー

Non-consolidated

million yen

million yen

6

5

18

Consolidated subsidiaries

24

24

41

Total

30

29

59

Governance (Compliance)
Item
Compliance-related seminars and other training programs

Of the above, seminars and other training programs related to antibribery and anti-corruption
(*1)
(*2)

Unit
time

≥ 190 times

Head Office ordomestic/overse
as corporations

personTotal of ≥ 14,570 persons

time≥ 70 times

personTotal of ≥ 2,710 persons

Number of times
Number of participants
Number of times

2017 (*1)

Scope

Number of participants(*2)

Figures from January to December 2017
Including training programs conducted by Sumitomo Corporation or its regional offices for business-line subsidiaries in Japan or overseas.

76

Sustainability of Sumitomo
Corporation Group

Environment

SocialGovernance

ESG quantitative data

Third-party assessment

Third-party assessment
Assessment organizations
MSCI: MSCI Japan Empowering Women Index (WIN)S&P/JPX Carbon Efficient Index

Sumitomo Corporation is listed as a constituent of
the MSCI Japan Empowering Women Index (WIN),
one of the environmental, social and governance(ESG) indices selected by the Government Pension Investment Fund (GPIF). This is an
ESG index consisting of companies with high gender diversity selected by MSCI USA.

Sumitomo Corporation has been named as a constituent of the S&P/JPX Carbon EfficientIndex, a global environmental stock index selected by GPIF. This index is designed todetermine the weight of each constituent of the Tokyo Stock Price Index (TOPIX)
depending on the disclosure level of environmental information and the carbon efficiency
level (carbon emissions per sales), based on its market capitalization.

CDP（Carbon Disclosure Project）

MS-SRI: Morningstar Socially Responsible Investment Index

We respond to the climate change questionnaire of the Carbon Disclosure Project (CDP).
In 2017, we were rated as "Management Level B."

Sumitomo Corporation was named as a constituent of the Morningstar Socially
Responsible Investment Index (MS-SRI), the first of its kind in Japan. (as of May 2018)

SNAM: SNAM Sustainability Index

Nikkei Environmental Management Survey

Sumitomo Corporation is listed as a constituent of the SNAM Sustainability Index of Sompo
Japan Nipponkoa Asset Management Co., Ltd. (SNAM).

In the annual "Nikkei Environmental Management Survey" conducted by Nikkei Inc.,
Sumitomo Corporation was ranked first in 2018 for the second consecutive year in the nonmanufacturing trading company category.

"Platinum Kurumin" program of the Ministry of Health,Labour and Welfare (MHLW)
Our company was granted Platinum “Kurumin” certification by
the Minister of Health, Labour and Welfare as a company
that provides superior childcare support. The Platinum“Kurumin” certification is a recognition system establishedalong with the revision of the Act on Advancement of
Measures to Support Raising Next-Generation Children on April 1, 2015. The
certification is awarded to “Kurumin” certified companies that have executed suchmeasures at a higher standard than before. SC is one of the first five companies inTokyo to obtain his certification.SC has been facilitating work environments that allow
each employee to realize work-life balance as well as implementing measures to enable
its employees engaged in childcare and nursing care to perform their jobs at their bestlevel. For example, in November of last year, SC newly established a support system for
all the SC employees overseas that allows them to take their children without taking
their spouse in an effort to enable them to move forward with their career path whileraising children, thus boosting their success in both childcare and work.

"Eruboshi" certification
In May 2016, Sumitomo Corporation was certified as a second-highest
class "Eruboshi" company in recognition of the effort to promote the active
involvement of female employees on the basis of the Act on Promotion of
Women's Participation and Advancement in the Workplace.

Excellent health and productivity management enterprise in
the "White 500" category, certified by the Ministry of Economy,
Trade and Industry (METI)
We were certified by METI as outstanding health and productivity
management enterprise in the White 500 category in 2018 for the second
consecutive year.

77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 andstandards, we are addressing the Six Material Issues to Achieve Sustainable Growth with Society.

Environment
 Environmental Policy
https://www.sumitomocorp.com/en/jp/sustainability/environment-policy ISO 14001 Management System Certification
https://www.sumitomocorp.com/en/jp/sustainability/environment-policy#03

Society CSR Action Guidelines for Supply Chain Management
https://www.sumitomocorp.com/en/jp/sustainability/csr

 Support for the UN Global Compact’s 10 Principles
https://www.sumitomocorp.com/en/jp/sustainability/initiative Basic Principles on Social Contribution Activities
https://www.sumitomocorp.com/en/jp/sustainability/contribution

Governance Corporate Governance Principles

 Information Security Policy

https://www.sumitomocorp.com/en/jp/about/governance/detailhttps://www.sumitomocorp.com/en/jp/security

 Sumitomo Corporation Group Tax Principles (PDF/69KB) Human Resource Management Policy

https://www.sumitomocorp.com/jp/-/media/Files/hq/sustainability/material-issues/taxprinciples-j.pdf?la=en Compliance Guiding Principles
https://www.sumitomocorp.com/jp//media/Files/hq/about/governance/compliance/compliance-policy.pdf?la=en Corporate Disclosure Policy (PDF/577KB)
https://www.sumitomocorp.com/jp//media/Files/hq/about/governance/detail/disclosurepolicy160701.pdf?la=en

https://www.sumitomocorp.com/en/jp/about/talent/manage

 Privacy Policy
https://www.sumitomocorp.com/en/jp/privacy

 Work-Life Management Policy and Action Policies
https://www.sumitomocorp.com/en/jp/about/talent/utilization/wlm/policy

 Sumitomo Corporation Group Anti-Corruption Policy (PDF/270KB)
https://www.sumitomocorp.com/jp/-/media/Files/hq/about/governance/compliance/anticorruption-policy.pdf?la=en Risk Management Basic Policy
https://www.sumitomocorp.com/en/jp/about/governance/risk

78