ENVIRONMENTALINITIATIVES
Environmental Activity Report■ CONTENTS

Support for TCFD Recommendations: Long-Term Target of Achieving
Carbon-Neutral by 2050

1

6th Medium-Term Environmental Plan

2

Environmental Targets and Achievements

3

Environmental Management

5

Climate Change Adaptation

6

Sound Material-Cycle Society

9Chemical Substance Management

10

Biodiversity

11

Scope: This report covers Sumitomo Heavy Industries, Ltd. as well as its consolidated
subsidiaries and equity-method affiliates both in Japan and overseas. Context changes
are duly noted in the report.
Timeline: April 1, 2021 to March 31, 2022

Environmental Footprint Data

12

Guidelines referenced: Environmental Reporting Guidelines 2018, Ministry of the Environment
Environmental Accounting Guidelines 2005, Ministry of the Environment

15

Cautionary Note Concerning Forward-Looking Statements:
This report includes forward-looking statements regarding the future performance of Sumitomo
Heavy Industries, Ltd. These forward-looking statements are based on information currently
available to the Company and determined subjectively. All information contained herein is subject
to changes in actual business performance.
Copyright © Sumitomo Heavy Industries, Ltd. All Rights Reserved.

Corporate information

Non-financial

Financial
Integrated Reports
Consolidated Financial Reports

Corporate Governance Reports

Interim Reports (To our shareholders)

Environmental Activity Report

Website (Investor Relations)Website (Sustainability)

Technical
information

Sumitomo Heavy
Industries
Technical Review

Non-Financial Data List

Document HierarchySupport for TCFD Recommendations/ Long-Term Target of Achieving Carbon-Neutral by 2050

6th Medium-Term Environmental Plan

Support for TCFD Recommendations

6th Medium-Term Environmental Plan

In October 2021, the Sumitomo Heavy Industries Group (SHI Group) endorsed the recommendations of the Task

The SHI Group has been committed to promoting the 6th Medium-Term Environmental Plan (FY2020 to 2023) since

Force on Climate-related Financial Disclosures (TCFD*). Along with further improving our activities in a manner

FY2020 as we strive to contribute toward realizing a sustainable society, endeavor to resolve social issues, andfacilitating solutions to the challenge of climate change, we will endeavor to more fully communicate and discloseenhance corporate value across our products and services. With a focus on the following four key issues in our 6th

information in line with the TCFD framework in a manner that provides greater clarity to our stakeholders. Please

Medium-Term Environmental Plan, we have been working to reduce total CO2 emissions during productsee our Integrated Report for more information about how we are responding to climate change risks.

manufacturing processes to help mitigate climate change, as well as expanding our range of Sustainability Plus
Products (to reduce CO2 emissions during product use) as a part of our overall CO2 emission-cutting activities.

*TCFD (Task Force on Climate-related Financial Disclosures)
TCFD is a special private sector-led organization formed at the request of theG20 and composed of members from a broad range of economic sectors andfinancial markets around the world, including major corporations and credit rating
agencies. The TCFD recommends that companies evaluate the financial impact
of climate change risks and opportunities on their operations and disclose theirgovernance, strategy, risk management, metrics and targets.

(1) Strengthen environmental risk management
We will strive to prevent environmental incidents and continuously improve and invigorate our environmental
management system.

(2) Reduce CO2 emissions in a consciousness response to climate change

Long-Term Target of Achieving CarbonNeutral by 2050
The SHI Group Board of Directors has resolved to strive to achieve carbon-neutral by 2050 as a response tointensifying climate change. The Group also set CO2 reduction targets for 2030 that will serve as interim
performance indicators.
•

Aim to achieve carbon-neutral (net zero CO2 emissions) throughout the entire SHI Group by 2050

Of “the burdens that the product life cycle places on the environment”, we will endeavor to “reduce CO2 emissions”
during both product manufacturing and use, which comprise some of the highest environmental loads.

(3) Reduce the environmental loads of business activities
Of “the burdens that the product life cycle places on the environment”, we will work to “reduce the environmental
footprint” associated with business activities other than “CO2 emissions” through such efforts as contributing to solutions
for marine plastic pollution and implementing the 3R principle for waste and product packing materials.

(4) Conservation of biodiversity
We will strive to help preserve biodiversity through social contribution focusing on Sustainability Plus Products.

Transition of SHI Group's Environmental Management Activities (2005-2021)

emissions during product manufacturing (Scopes 1 and 2*1): 50% reduction by 2030 (compared to FY2019)

•

CO2

•

CO2 emissions during product use (Scope 3*1, Category 11*2): 30% reduction by 2030 (compared to FY2019)The SHI Group’s business is built on providing industrial machinery that supports our customers’ production
activities. We believe that helping accelerate the realization of a carbon-free society through our products andservices will build value for SHI Group products and, further, facilitate sustainable growth for our Group.

FY2020-2023
FY2014௅2016
FY2005௅2007
Commencement of global
warming prevention activities*1 Calculated based on the GHG Protocol.
*2 We will assess actual Scope 3 emissions that are other than Category 11 and then conduct studies toward setting targets accordingly.

(Reduction of electricity usage, reductionof paper usage, green logistics)

1st MediumTerm
Environmental
Plan
SHI Group CO2 emissions reduction(Scope 1, 2)
FY2019 Reduced by 50% compared to FY2019
࣭Continue energy-saving initiatives
࣭Upgrade equipment and reform production processes
࣭Purchase renewable energy
Etc.

2019

1

2050 (year)

4th MediumTerm
Environmental
Plan

FY2008௅2010

FY2011௅2013

CO2 emissions reduction
activities

FY2019 Reduced by 30% compared to FY2019 ࣭Enhance efficiency and reduce loss
࣭Improve fuel economy and switch fuels
࣭Modify product portfolio
Etc.

(Improvement of energy productivity)

Zero-emission plants
Expansion of environmentallyfriendly“ first-class products”

Net zero emissions

2005

CO2 emissions

2030

3rd MediumTerm
Environmental
Plan

2nd MediumTerm
Environmental
Plan

SHI Group CO 2 emissions during product use(Scope 3 Cat. 11)

Net zero emissions

CO2 emissions

Improvement of overseas plants
and CO2 reduction in productuse based on global targets
CO2 emission reduction during
product use

2019

2030

Extended efforts to overseas
Group companies
Hazardous chemical
management
Biodiversity

2010

2015

Total CO2 emission reduction in a
consciousness response to climate change(During manufacturing and product use)

6th MediumTerm
EnvironmentalPlan

5th MediumTerm
Environmental
Plan
FY2017௅2019
CO2 emission reduction
over product life cycle

2020

2050 (year)2

Environmental Targets and Achievements

Environmental Targets and Achievements
FY2021 Targets and Achievements

Overview of Environmental Loads in FY2021 (SHI Group companies in Japan)

With the exception of environmental incidents, the SHI Group achieved 16 of the 17 targets in
FY2021 under the 6th Medium-Term Environmental Plan.
Environmental incidents: In FY2021, no major environmental incidents occurred. However, there were five environmental
incidents, so we did not achieve this medium-term goal. Following considerable paint spills and coating dust dispersal, efforts
have been extended across the entire SHI Group, including sales and service sites, to prevent similar incidents from occurring.
We are also striving to prevent incidents involving leakage of oil, chemicals, effluent, and similar substances from machinery by
ensuring that planned repairs, component replacements, and other maintenance is performed as well as revising andstrengthening environmental risk assessments.

Information about other items is given on p.6 and after.

INPUT

OUTPUT
CO2 emissions

Energy input

105,000 t

Chemical transfers andemissions

Crude oil equivalentNƐ

790 t

PRTR substances*1

BenchmarkItem
Major environmental incidents

FY2021 Target

FY2021 Results

Zero

0

Air pollutant emissions
Water resource input

Environmental management

1,178,000 m3
Environmental incidents

No more than 3 incidents

Total CO΃ emissions (in Japan, market standard)

Reduce by 2% compared to
FY2019During manufacturing / Energy productivity (in Japan)

Improve by 2% compared to
FY2019Climate change adaptation

5 incidents
3.5% reduction

2.8% improvement

172,000 t

Improve by 2% compared to
FY2019

4.1% improvement

During transportation / Green logistics (in Japan)

Maintain at or below FY2019
level

0.9% decrease

Certify 23 models

25 models certified

Prevention of environmental
pollution

3

Reduction in basic waste emissions unit (in Japan)*Including hazardous waste

Maintain at or below FY2017 to2019 average

Reduction in basic waste emissions unit (Overseas)*Including hazardous waste

Reduced by 2% compared to
FY2019

5.1% reduction

Less than 0.5%

0.1%

Reduction in product packing materials (basic unit inJapan)

Maintain at or below FY2017 to2019 average

2.8% reduction

Reduction of water consumption (in Japan)

Maintain at or below FY2017 to2019 average

1.5% reduction

Reduction in basic water consumption unit (Overseas)

Maintain at or below FY2019
level

8.6% reduction

VOC reduction (in Japan)

Maintain at or below FY2019level

12.2% reduction

VOC reduction (basic unit in Japan)

Maintain at or below FY2019
level

16.9% reduction

Zero-emission landfill rate (in Japan)

Nox
SOx

Amount discharged
into water systems

1.5 t
6.2 t
0.5 t

COD

T-P

Amount of chemicals handled
PRTR*1

Promotion of recycling toconserve resources

507 t
3.3 t
0.2 t

VOC*2

T-N

During manufacturing / Energy productivity (Overseas)

Expansion of Sustainability Plus Products

Amount of steel purchased

Sumitomo
Heavy
Industries
Group

11.8% reduction

substances

1,017 tAmount of waste generated
Total emissions
Amount recycled

27,108 t
25,843 t*1 PRTR: Pollutant Release and Transfer Register*2 VOC: Volatile Organic Compounds

4Environmental Management

Climate Change Adaptation

Environmental Management
President and CEO

Sumitomo Heavy Industries Group
Environmental Policy
Basic Concept
Recognizing that it is crucial to act globally to addressenvironmental conservation and climate change torealize a sustainable society, the Sumitomo Heavy
Industries Group is striving to reduce our environmental
footprint in all business activities, including over theentire product life cycle, in line with our fundamental
sustainability policy.

Director Responsible forGeneralAdministration Group
General Manager,
General Administration
Group

Climate Change Adaptation

Report to meetings of Executive & Operating
OfficersCommittee (3 times annually)
Examination by General Manager of General
Administration Group (once annually)
Environmental audits (once annually)
Japan/China Environmental Management Meeting(twice a year)
Global Warming Prevention Environmental/EnergySaving Meeting (each region)

Environmental
Management Dept.,
General Administration
Group

Environmental
Audit Team

Environmental Policy
1. Strive to prevent environmental contamination whileworking to conserve the global environment.
2. Work on activities to reduce our environmental
burden, such as reduction of CO2 emissions and wastes,
reuse and recycle of resources, and efficiently using
energy with the aim of achieving a decarbonized andsound material-cycle society.
3. Consider the impact of our business operations on
natural and ecosystems, and seek to preserve
biodiversity.
4. Enhance our environmental management framework,and continue to operate and improve environmental
management systems.
5. In addition to compliance with relevant environmental
laws and regulations, establish, administer and evaluate
voluntary standards as necessary.
6. Improve the environmental awareness of all
personnel involved in our business activities throughongoing environmental education and awarenessraising activities.
7. Share, communicate, and make publish thisEnvironmental Policy to all stakeholders.
Sumitomo Heavy Industries, Ltd.
December 1, 2021

Environmental Management System
Management of environmental activities across our entire
Group is carried out by the Administration Division General
Manager and the Environmental Management Department
under the supervision of the Director responsible for General
Administration Group Affairs designated by the President.
The Sumitomo Heavy Industries Group's Environmental
Policy is approved and determined by the President as the
person with ultimate responsibility.
Environmental audits are conducted to check management
status against the local situation at each manufacturing site,
including affiliated companies. Reported results of activities
and problems are shared at Environmental Management
Meetings. The SHI Group's Environmental Policy, targets,
initiatives, and other efforts have been communicated to
employees during environmental education.

Works
Environment
Committee members

5

Environment
Committee members

Environment
Committee memberGroup companies
under divisions
Environment
Committee members

To improve the level of environmental management, audit
results are evaluated on a five-point scale for each department
based on our own criteria. The results are reported at Executive &Operating Officers Committee meetings.

Promotion of Environmental Management

Renewable Energy Adoption

The SHI Group recognizes that responding to climatechange is a key challenge in our environmental
management. The Environmental Management Group
conducts monthly supervision of results produced by eachbusiness division and provides feedback to those in charge.
In addition, the results are reported to management threetimes a year at meetings of the Executive & Operating
Officers Committee. SHI Group divisions promote climatechange adaptation by mobilizing all personnel in their efforts,
making sure their activities are visible, and implementing
activities to improve various processes so as to more
efficiently utilize energy.

The SHI Group has endorsed the message of the Japan
Climate Initiative: “Now is the time to accelerate renewableenergy deployment: Calling for stronger climate change
action in the midst of the fossil energy crisis.” In line with
this, we have promoted the adoption of renewable energies.
Since 2020, the SHI Group has been installing solar power
generation systems on new buildings at our group works.
We are also actively promoting plans for further such
installation in the future.
In addition, in 2022, we also started purchasing renewableenergy.
Along with CO2 emission reductions of 1% annually througha variety of energy-saving measures, we are endeavoring to
introduce solar power generation systems chiefly for newbuildings, striving to increase the scale of our renewableenergy purchases, and promoting CO2 emission reductions
with the aim of realizing carbon-neutral by 2050.

Reduction in CO2 Emissions

The SHI Group’s CO2 emission in FY2021 were 3.5% lessthan in FY2019, an achievement of our 2% target.
This accomplishment resulted from promoting energy
savings, converting lighting to LED, updating antiquatedequipment, and making other efforts that have improved
energy productivity. In FY2022, we will continue to adopt
renewable energies, upgrade to more efficient energysaving systems, enhance energy productivity, and promote
other measures that reduce CO2 emissions.
CO 2 emissions

႑Japan႑ Overseas(10,000 t-CO2)

࣭Examination by General Manager, General
Administration Group (as required)20

In conjunction with environmental audits, the General Manager of
the General Administration Group conducts a separate examinationand provides guidance to departments at the General Manager’s
discretion (such as departments that, in the previous fiscal year,
experienced an environmental incident, those whose performance
was far below targets, and other necessary circumstances).

࣭Environmental management meeting (biannual)
Environmental Management Meetings are held for works andaffiliated companies in Japan to report activity results and shareproblems.
China Environmental Management Meetings are also held foraffiliated companies in China, with the aim of raising the level ofenvironmental activities engaged in at those companies.

Environment & Energy-Saving Capital Investment
In FY2021, capital investment related to the environment
and energy-savings totaled 2.51 billion yen. We aresystematically and actively updated dilapidated equipment
and introducing new technology from the standpoint
preventing environmental incidents as well as saving andenhancing energy efficiency.

15

17.4
6.7

19.0

19.5

18.6

19.6

7.8

8.6

8.3

9.0

10
5
0

10.5

11.2

10.9

10.3

10.5

2017

2018

2019

2020

2021 )<

Improvements in Energy Productivity
The SHI Group has set and managed indices foremissions as well as energy productivity (sales/CO2
emissions) as part of our efforts to enhance production
efficiency and carry out activities aimed at reducing CO2
emissions. For FY2021, we raised our target to a 2%
improvement over the FY2019 level for our activities, which
we achieved with a 2.8% improvement in Japan and a 4.1%
improvement overseas.
We will continue to promote the following measures.

‫ ڤ‬Setting up and practicing of non-operating days
‫ ڥ‬Reducing standby power of equipment or facilities‫ ڦ‬Operating equipment and facilities more efficiently‫ ڧ‬Cutting energy consumption by reducing production lead time

* Used a Japan conversion factor of 0.462 g-CO΃/kWh as a fixed value.

Energy productivity

႑ Japan႑Overseas ႑In Japan/Overseas(1 million yen/10,000 t-CO2)

8.0
6.0
4.0

6.15

5.91
4.46
2.56

5.96

5.83

5.80
4.80

4.42

4.27

4.52

3.24

2.96

2.65

3.09

2018

2019

2020

2021 (FY)

2.0
0

2017

(Unit: Million yen)
FY2021 Environment-related capital investment<Details of Activities>
䞉 Environmental audits (once annually)
Environmental audits are conducted at manufacturing
sites in Japan, China, and Southeast Asia to assess overall
environmental management from the perspectives ofenvironmental incident prevention, legal and regulatorycompliance, and global warming prevention.

Group companies
under Head Office

DivisionsAmong our strategies for reducing our environmental footprint across all business activities including product life cycle, the top
priority for the SHI Group has been to reduce CO2 emissions.

Environment-related

Energy-saving related

Total

Japan

470

1,808

2,278

Overseas

76

159

236

Total

547

1,967

2,513

6

Climate Change Adaptation

Climate Change Adaptation

Promotion of Green Logistics
The SHI Group is endeavoring to eliminate waste andenhance efficiency in product transport in order to reduce
CO2 emissions. In Japan, we reduced the basic shipping unit
(t-CO2/weight) 0.9% in FY2021 through load factor
improvements, modal shifts, effective use of consolidated
shipping, and other measures, which enabled us to achieve
our target of maintaining the level at or below that in
FY2019. We will continue to promote modal shifts as well as
load and other activities for optimizing efficiency.
Logistics CO2 emissions

႑ CO emissions

Ɣ Target Ɣ Actual

2(1,000 t)

15,0000.022012,000 0.0216
9,000
6,000

11,4270.02140.02110.02300.0212Per basic unit (t-CO2/weight)

0.02420.0227

11,984

11,5620.02280.025

0.0227

0.020
0.015

11,046

11,082

0.005

3,000
0

0.010

2017

2018

2019

2020

2021 (FY)0

Reduction in CO2 Emissions overLife Cycle and During Product Use

Sustainability Plus Products

List of Registered Sustainability Plus Products

In FY2021, 25 Sustainability Plus Products were certified,of which six achieved a 90-point or higher score, making
them Super Sustainability Plus Products. The number of
products presented for certification as well as the number
certified has continued to increase annually. Just as in theprevious year, we were able to surpass our target which was
to have 23 products certified in FY2021. Even so, theseproducts constituted only 26% of total group sales, below
our target of 32%.
To reduce the environmental footprint across product life
cycle, we have prepared EOL manuals for Sustainability
Plus Products, which are provided to our customers forreference when equipment is discarded. In addition, we
have equipped our power excavators, cranes and otherconstruction machinery with field-of-view monitors, making it
safer for workers operating and handling such equipment.
Our medical device development and manufacturing
divisions have engaged in collaborative research on
therapeutic methods and drugs with healthcare facilities,
universities, and other outside organizations.

CO2 emissions throughout the life cycle in FY2021
amounted to 137.17 million tons, of which 136.61 million
tons or 99.6% were CO2 emissions during product use.
To reduce CO2 emissions during product use, we will certify
and offer even more Sustainability Plus Products, which
provide outstanding resource and energy savings.
We recognize that the pursuit of technological development
and other research to expand our Sustainability Plus roductlineup is a key business challenge for adapting to climatechange, and we will promote these activities.

<Scope 3>

Raw materials
351,365
0.3%

Scope 1
Japan
17,294
9%

Scope 2
Overseas
68,81835%

Segment

Name

Environment

Registration category
Resource
circulation

Mechatronics

Industrial
Machinery

Logistics& Construction

Energy &Lifeline

FY2021 Life cycle CO2 emissions<Scope 1, 2>

Evaluation items
Society

Automatization /Global Warming
Environmental risk
Labor-saving
Countermeasures

New IE3 high-energy motors

Sustainability Plus Products

Ⴄ

Ⴟ

Ⴟ

Ⴄ

SEEV-A-HD (220-500t)

Sustainability Plus Products

Ⴄ

Ⴜ

Ⴟ

Ⴜ

FPS forging servo presses

Sustainability Plus Products

Ⴜ

Ⴟ

Ⴟ

Ⴜ

SIP ductile of mill rolls

Sustainability Plus Products

Ⴜ

Ⴟ

Ⴟ



S-UHE14 ion implantation devices

Sustainability Plus Products

Ⴄ

Ⴟ

Ⴟ

Ⴄ

MC3-II/GP ion implantation devices

Sustainability Plus Products

Ⴄ

Ⴟ

Ⴟ

Ⴄ

SAion-300 ion implantation devices

Sustainability Plus Products

Ⴄ

Ⴟ

Ⴟ

Ⴄ

Thermal series of air conditioners

Sustainability Plus Products

Ⴄ

Ⴜ

Ⴟ

Ⴜ

Eco Pulser™ dust collector

Sustainability Plus Products

Ⴄ

Ⴟ

Ⴜ

Ⴜ

LEGEST HB-7 hybrid hydraulic excavators

Super Sustainability Plus Product

Ⴄ

Ⴟ

Ⴟ

Ⴜ

LEGEST 7 hydraulic excavators

Super Sustainability Plus Product

Ⴄ

Ⴟ

Ⴟ

Ⴜ

Asphalt finisher model 10

Sustainability Plus Products

Ⴄ

Ⴟ

Ⴟ

Ⴄ

Electric forklift truck

Super Sustainability Plus Product

Ⴄ

Ⴟ

Ⴟ



CFB biomass boiler

Super Sustainability Plus Product

Ⴄ

Ⴜ

Ⴟ

Ⴟ

CFB compact biomass boiler (25 t)

Sustainability Plus Products

Ⴜ

Ⴜ

Ⴟ

Ⴜ

Electrostatic precipitator

Super Sustainability Plus Product

Ⴄ

Ⴟ

Ⴄ

Ⴄ

Evaporator

Sustainability Plus Products

Ⴄ

Ⴟ

Ⴟ

Ⴄ

Sumijetter II of grit jet pump

Super Sustainability Plus Product

Ⴜ

Ⴟ

Ⴜ

Ⴄ

Vertical screw-type screening equipment spiral cutter Sustainability Plus Products

Ⴄ

Ⴟ

Ⴄ

Ⴜ

Vertically split divided-wall column (DWC)

Sustainability Plus Products

Ⴄ

Ⴟ

Ⴄ

Ⴄ

Agitators & mixing vessel

Sustainability Plus Products

Ⴄ

Ⴟ

Ⴟ

Ⴄ

Multipurpose extractor

Sustainability Plus Products

Ⴜ

Ⴟ

Ⴜ

Ⴜ

Functional tanks

Sustainability Plus Products

Ⴄ

Ⴟ

Ⴟ

Ⴄ

Steam turbines (optimized reaction blade rows)

Sustainability Plus Products

Ⴜ

Ⴜ

Ⴄ

Ⴄ

Steam turbines(long-blade, high-efficiency model)

Sustainability Plus Products

Ⴜ

Ⴜ

Ⴄ

Ⴄ

*A list of the FY2021 Sustainability Plus Products is posted on our website.

90% or higher - ᶈ , 70–90% - ż , 30–70% - ᶭ , less than 30% - X

Capital goods
154,343
0.1%
Energy consumption
21,3490.0%

Scope 1
Overseas
21,375
11%
Scope 1+2

Scope 2
Japan
88,113
45%
195,601

Logistics (Upstream)
11,0820.0%
Use of products
136,614,107
99.6 %

Others558,6160.
4%

Commuting Business
11,138
travel0.0%
3,761

Waste disposal
5,578
0.0%

0.0%
CFB Biomass Boiler (Circulating Fluidized Bed Boiler)

7

Hydraulic Excavator (ex. SH250-7)

Ion implantation device (SAion)

8

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UHGXFWLRQ EHORZ WKH )< OHYHO DV WKH EDVLF WDUJHW XQLWDQG ZH DFKLHYHG D  UHGXFWLRQ LQ )<$PRXQWRIZDVWHJHQHUDWHG

80,00040,00020,000064,16555,03247,50323,03818,62524,94628,8782017

24,68631,9942018

34,08524,42630,0802019

60,86630,70730,23930,1592020

30,23927,1082021 (FY)$PRXQWRIZDVWHJHQHUDWHG SHUEDVLFXQLWRIVDOHVƔ Japan   Ɣ Overseas  Ɣ Total(t/million yen)

0.20
0.16

0.134

0.140

0.12

0.109

0.08

0.070

0.091
0.068

0.083

0.085

0.04

0.058

0.060

0.059

0.062

0

2017

2018

2019

2020

0.127
0.077
0.052

30.0

&RQWURORI92&6XEVWDQFH(PLVVLRQV

24.2

25.0
20.0
15.0

12.8
3.8

1.5

0.0
2017

3.3

0.0
2018

1.4

0.0
2019

4.0 2.0

0.1
2020

3.6 2.1

0.12021 (FY)

5HGXFLQJ :DWHU &RQVXPSWLRQ
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2021 (FY)Ⴠ Water consumption per basic unit in Japanbasic unit
Ⴠ Overseas
Ⴠ Total water consumption per basic unit

႑ Japan ႑ Overseas(thousand m3)

1,527

1,558

1,514

295

375

343

3

1,554 (m /million yen)
10.0
376
8.0

=HUR(PLVVLRQV /DQGILOO5DWH5HGXFWLRQ

1,500

7KH6+,*URXSGHILQHVD]HURHPLVVLRQSODQWLQ-DSDQDV
RQHIRUZKLFKWKHUDWLRRIODQGILOOGLVSRVDOYROXPH ODQGILOOUDWH 
WRZDVWHGLVFKDUJHYROXPHLVOHVVWKDQ6LQFH)<
ZHKDYHEHHQSURPRWLQJHIIRUWVWRUHGXFHWKHODQGILOOUDWH,Q)<WKHODQGILOOUDWHIRUDOOGRPHVWLFZRUNV ZRUNVDQG
SODQWV DQGJURXSEXVLQHVVHVRWKHUWKDQZRUNV FRPSDQLHV 
ZDV:HKDYHFRQVLVWHQWO\DFKLHYHG]HURHPLVVLRQVVLQFH)<

1,200

1,378
207

900

1,171

1,232

1,183

1,171

1,178

6.0

600

2.29
2.02

2.23
1.89

2.27
2.01

2.34
2.11

2.22
1.92

4.0

1.16
2018

1.48
2019

1.56
2020

1.35
2021 (FY)

0

300
0

1.21
2017

2.0

Ⴠ Basic unit in Japan
Ⴠ Basic unit overseas
Ⴠ Total basic unit

92&HPLVVLRQV႑ Japan႑ Overseas

VOC emissions per basic unit (kg/million yen)

(t)

800
600

Water consumption



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RUEHORZWKH)<OHYHO,Q)<ZHDFKLHYHGDUHGXFWLRQFRPSDUHGWR)<,QDGGLWLRQWKHEDVLFVDOHVXQLWZDVDOVRUHGXFHGE\:KLOHPDLQWDLQLQJTXDOLW\ZHZLOOH[SDQGWKHDSSOLFDWLRQRIORZVROYHQWSDLQWVDQG
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WUDQVIHUYROXPH႑ Japan ႑ Overseas ႑ Total

62,59135,48335756XEVWDQFH(PLVVLRQVDQG7UDQVIHU9ROXPH:HKDYHFRQWLQXHGWRVWULYHWRFRPSOHWHO\SKDVHRXWWKHXVHRIGLFKORURPHWKDQHWHWUDFKORURHWK\OHQHDQGWULFKORURHWK\OHQH
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5.0
0

(t)

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10.0႑ Japan ႑ Overseas Ⴠ Target in Japan

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UDWHWDUJHWRIRUKLJKHU,Q)<ZHDFKLHYHGRXU
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KDYHRXUSODQWVFRQWULEXWHWRDVRXQGPDWHULDOF\FOH
VRFLHW\

400
200
0

643
85

1.54
0.94
0.50

559
2017

736
88
1.52
0.91
0.35
647
2018

682
108
1.50
0.88
0.43
574
2019

690
171

716

2.0

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(PLVVLRQVDQGWUDQVIHUYROXPHRI3575VXEVWDQFHV႑ Emissions in Japan
(t)

1,000
800
600

1.5

1.38

209
1.25

0.96
0.78

0.88
0.75

1.0

200

0.5

0

519
2020

507
0
2021 (FY)

6XEVWDQFHGHVLJQDWLRQ

8QLWNJ(PLVVLRQVWUDQVIHUYROXPH

400

952
830
1.62

1.72

Ⴠ Emissions per basic unit
PRTR substance emission/transfer amountper basic unit (kg/million yen)

838

1.61

2.5

766

790

1.53

1.49

2.0
1.5
1.0
0.5

2017

2018

2019

2020

2021 (FY)0

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Biodiversity

Non-financial Data List

Biodiversity

Non-financial Data List
[Scope]The scope of non-financial data provided covers Sumitomo Heavy Industries Ltd., consolidated subsidiaries, and equity method
affiliates. Context changes are duly noted in the report.

Endorsement of Keidanren Initiative for
Biodiversity Conservation
In the aim of realizing a sustainable society, the SHIGroup endorsed the Keidanren Initiative for Biodiversity
Conservation, which indicates the intent and action
guidelines from the standpoint of companies to address theissue of biodiversity conservation.
Our main activities have been to reduce wood in
packaging, address the issue of marine plastics, andpromote green spaces and tree planting around production
plants.

SHI Group Participation in the Mt. Fuji Reforestation
Project■ Response to Climate Change
Evaluation items (subcategories)
Scope 1＋Scope 2(Market)The SHI Group has joined OISCA Japan, through which
we are participating in the Mt. Fuji Reforestation Project. The
aim of this project is to revitalize the man-made forest of Mt.
Fuji, which has sustained considerable damage from
insects, and turn it into a biodiversity-rich forest. We haveprovided donations and SHI Group employees are also
participating in the reforestation activities.

Scope 1CO2
emissionsTanashi Works has preserved the Musashino Forest,
which occupies approximately 30% of the site’s area. A
section of this forest, which is home to over 4,500 trees ofsome 40 species, has been named Hasso-no-Mori or theForest of Ideas and opened to the general public. This is aplace where people may come and relax. The space serves
many functions, including a community disaster prevention
base and the object of academic research into biodiversity.

2021
10.3

Remarks
10.5

6.7

7.8

8.6

8.3

9.0

17.4

19.0

19.5

18.6

19.6

Japan

t-CO 2

19,065

18,601

18,36317,02817,294

Overseast-CO 2

17,188

20,103

22,691

20,734

21,375Total

t-CO 236,252

38,704

41,05437,762

38,670

%

81.2

80.1

85.9

85.9

92.6

Japan

t-CO 2

88,778

93,11090,832

86,163

88,113

Overseast-CO 2

49,382

58,18362,936

61,99568,818Total

t-CO 2

138,160

151,293

153,768

148,158

156,931

%

81.2

80.1

85.9

85.9

92.6

Total

t-CO 2

333,504

493,773

226,075,475

123,560,109

137,172,723

%

68.9

91.5

97.9

96.8

t-CO 2

313,671

312,242

313,670

356,805351,365

Cat-02 Capital goods

t-CO 2

ー

143,234

165,751

128,805

154,343

Cat-03 Energy consumption

t-CO 2

ー

9,949

20,162

20,28021,349Cat-04 Logistics (Upstream)

t-CO 2

11,428

11,984

11,562

11,046

11,08296.5 Cat-11 only

5,578

Cat-05 Waste disposal

t-CO 2

8,405

8,679

6,958

5,767

Cat-06 Business travel

t-CO 2

ー

1,962

2,120

2,171

3,761

Cat-07 Commuting

t-CO 2

ー

5,723

6,006

6,179

11,138Cat-08 Lease asset (Upstream)

t-CO 2

0

0

0

0

0

Cat-09 Logistics (Downstream)

t-CO 200

0

0

0 Included in Cat-04

Processing of Cat-10 Products

t-CO 2

0

0

0

0

0

Use of Cat-11 Products

t-CO 2ーー

225,549,245

123,029,056

136,614,107

Disposal of Cat-12 Products

t-CO 2

0

0

0

0

0

Cat-13 Lease asset (Downstream)

t-CO 2

0

0

0

0

0

Million yen/CO2-t

4.9

7.8

4.7

4.9

5.1

Japan

Million yen/CO2-t

5.9

6.1

5.8

5.8

6.0

Overseas

Million yen/CO2-t

2.6

3.2

3.0

2.7

3.1

Japan

MWh

93,54991,762

90,99685,35387,705

OverseasMWh91,889106,655

120,824

110,345

111,781

Total

MWh

185,438

198,418

211,820

195,698

199,486

Japan

MWh

161,443

170,129

169,191

163,831

171,456

OverseasMWh

106,222

124,509

131,085

129,930

141,583

Total

MWh

267,665294,639300,276

293,761

313,039

Japan

MWh

1,195

1,357

1,203

1,197

1,113

Overseas

MWh

0

9,836

5,379

8,110

9,136

Total

MWh

1,195

11,193

6,582

9,307

10,249MWh454,299504,249

518,677

498,766

522,774

Fuel consumption

Electric power
consumption

Cold/warm water
Hasso-no-Mori (Forest of Ideas) within Tanashi Works
Total
Data coverage rate

%

81.2

80.1

85.9

85.9

92.6

Japan

MWh

323

336

323

1,223

1,298

Overseas

MWh

0

0

0

0

0

Total

MWh

323

336

323

1,223

1,298

Japan

%

0.20

0.20

0.19

0.75

0.76

Overseas

%

0.0

0.0

0.0

0.0

0.0

Overall

%

0.12

0.11

0.11

0.42

0.41

%

81.2

80.1

85.9

85.9

92.6

Total amountJapan

t-CO 2

67.4

45.9

51.0

54.2

29.7

Methane (CH4)Japan

t-CO 2

54.7

34.7

41.3

46.7

25.8

Dinitrogen monoxide
(N2O)

Japan

t-CO 2

12.8

11.2

9.8

7.5

3.8

Renewable energy consumption

Energy recycling rate

Data coverage rate

11

2020
10.9

Cat-01 Raw materials

Energy productivity

Other
major GHG

2019
11.2

10,000 t-CO2

CO2 emissions per basic unit

Energyconsumpti
on

2018
10.8

10,000 t-CO2

Data coverage rate

Mt. Fuji Reforestation Project

2017

Overseas

Data coverage rate
Scope 3

Unit
10,000 t-CO2

Total

Data coverage rate
Scope 2 (Market)

Tanashi Hasso-no-Mori (Forest of Ideas)

Japan

12

1RQILQDQFLDO'DWD/LVW

1RQILQDQFLDO'DWD/LVW(QYLURQPHQWDO$FFRXQWLQJLQ)<Ŷ :DVWH0DQDJHPHQW
Evaluation items (subcategories)

Unit

Japan

t

Amount of waste generated

Final disposal amountHazardous waste
generated2018

28,8782019

31,9942020

30,0802021

30,159Remarks

27,108Overseast

18,62523,03834,08530,70735,483Total

t47,50355,03264,16560,86662,591

%

81.0

83.6

85.6

85.5

84.2

Data coverage rate
Amount recycled

2017

Japan

t

28,80631,90524,86029,68625,843

Japan

t

4

10

1

16

27

Overseas

t

701

750

8,233

1,219

1,268

Total

t

705

760

8,234

1,235

1,249

Japan

t

287

4,079

303

818

708

(QYLURQPHQWDO&RQVHUYDWLRQ&RVWVDQG(IIHFWV &ODVVLILHG$FFRUGLQJWR%XVLQHVV$FWLYLW\
Amount recycled, valuable
resources

Specially controlledindustrial wasteŶ :DWHU5HVRXUFH&RQVHUYDWLRQ
Evaluation items (subcategories)

Unit

2017

2018
1,171

thousand m3

2019
1,232

2020
1,183

2021
1,171

Overseas

thousand m3

207

295

375

343

376 All service water

thousand m3

1,378

1,527

1,558

1,514

1,554

%

76.4

79.9

80.6

77.1

76.5

Service waterJapan

thousand m3

380

420

385

382

362

Industrial waterJapan

thousand m3

622

622

622

610

618

Underground waterJapan

thousand m3

170

191

176

179

198

thousand m3

425

468

454

478

460

%

52.9

50.9

51.3

51.6

47.5

Effluent
Data coverage rate

Evaluation items (subcategories)
VOC

Unit

2017

2018

2019

2020

2021

Japan

t

559

647

574

519

507

t

85

88

108

171

209

Total

t

643

736

682

690

716

593

55

540

112

57

25

93

890

1,352

13

702

125

155

-

-

- Economic effect(4) Research &development costs

R&D for reducing environmental
product footprint, and environmental
equipment R&D

3,465

3,057

3,306

319

102

222

-

-

Regional environmental
conservation and greening activities

0

1

2

1

1

19

0

0

0

0

-

-

0

0

1

0

0

0

13,053

5,651

4,129

2,672

1,068

1,408

233

225

381

(5) Social activity costs

Toluene

Japan

t

112

129

122

99

100

Imposition on air pollution load, andEnvironmental damage charges for green belts and pollution
compliance costs
compensation

2021

Remarks

0

0

0

1

0

0

0

0

0

0

0

0

0

0

0

Cases where US$10,000
0 or greater penalty
charge or fine paid

Overseas

Number of
cases

0

0

0

1

Group-wide

1,000,000 yen

ዙ

416

826

573

547

Group-wide

1,000,000 yen

ዙ

2,057

3,706

1,287

1,967

Total

(substantive effect)achieved withenvironmental
conservation- measures shown in
an appended table.

(FRQRPLF(IIHFWV5HODWHGWR(QYLURQPHQWDO&RQVHUYDWLRQ0HDVXUHV8QLW0LOOLRQ\HQ

Description of effects
Revenues

Cost savings

FY2019FY2020

FY2021Business revenues obtained by recycling waste or used products

176

200

287

Reduction in energy costs (electric power and fuel costs) from energy savings

57

25

93

ዙ

2,473

4,532

1,860

2,513

C
NA

B–
B

B
B

B–
A

B–
B

—

S

S

S

S

S

—

AA

AA

AA

AA

AAA

37

37

37

37

37

18

18

19

21

21

Total environmental conservation costs

15,725

6,719

5,537

55

55

56

58

58

Total investment

13,053

5,651

4,129

79.4

Total costs

2,672

1,068

1,408

Total research & development costs

3,784

3,159

3,528

Number ofcases
Number ofcases
Number ofcases%

Reduction in
expenses due to287 waste reduction
Sales of valuable
resourcesࠊ——

1,000,000 yen

Reduction in
expenses due toenergy/resourcesavings and 3Rs

ISO 14001 standard maintenance(3) Management activity
and administration, and green space
costs
expansion258

Ŷ (QYLURQPHQWDO0DQDJHPHQW



515

0

149

Acquisition rate

8,162

0

262

Total

0

0

301

Acquisition of ISO 14001 certification

0

2

351

Overseas

0

0

322

Japan

253

2

t

Group-wide

245

1

Japan

CDP
Buna-no-Mori (Beech forest)
Assessment under Act on Rationalizing
External
assessments Energy
Energy saving assessment for specifictenants by Tokyo metropolitan government

246

0XyleneEnvironment/
energysaving capital Energy-saving related
investment
Total

207

1

86.0

Environment-related

689

Product packaging material
reduction, home appliance recycling,
and use of both sides of paper

158

Number of penalties, fines, etc. paid

553

a200

88.6

Japan

381

176

155

Group-wide

225

645

87.8

Number of major environmental
law/regulation violations

233

554

167

2020

1,010

1,347

87.4

2019

840

8

125

2018

1,648

37

85.0

2017

808

2

t

Unit
Number ofcases
Number ofcases
Number of
cases

1,241

(1)-3 Resource
recycling costs%

Group-wide

8,697

Waste reduction, recycling
investment (recycling, use ofrecycled resources)Japan

Evaluation items (subcategories)

FY2021

Investment in energy-saving
measures (Power consumption
monitoring, energy-saving devices,
replacement of lighting, etc.)

Ethylbenzene

Number of major environmental incidents

Cost
FY2020FY2019Remarks

Overseas
Data coverage rate

FY2021

8QLW0LOOLRQ\HQ

Environmental conservation effects
Economic effect
Key points
FY2019FY2020
FY2021(1)-2 Global
environmental
conservation
costs

(2)
Upstream/downstream
costs

Ŷ &KHPLFDO6XEVWDQFHVPrincipal initiatives

Environmental conservation costs
Investment
FY2019FY2020

Maintenance/depreciation of(1) Costs within businessequipment reducing environmental
segment
load
Maintenance and management of(1)-1 Pollution equipment to prevent air and water
prevention costs pollution, and measurement ofequipment noise and vibration

Remarks
1,178

Total
Data coverage rate

Classification

Itemization

Water Consumption

Japan

7KH6+,*URXSXVHVWKH(QYLURQPHQWDO$FFRXQWLQJ*XLGHOLQHVLVVXHGE\WKH0LQLVWU\RI(QYLURQPHQWDVWKHEHQFKPDUNIRURXUHQYLURQPHQWDODFFRXQWLQJWRPHDVXUHLQYHVWPHQWVFRVWVDQGWKHLUHIIHFWVDVUHODWHVWRHQYLURQPHQWDOFRQVHUYDWLRQReduction in waste disposal costs from resource savings or recycling

3

1

1

Reduction in costs (labor, materials, repairs and other maintenance and operation costs)

0

0

0

237

227

381

Total

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8QLW0LOOLRQ\HQ

77.9

80.0

80.1

80.6

Details of effects

FY2019FY2020

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CO2 emissions(t-CO 2 )7
6
15,000
5
4
10,000
3
2
5,000
1
0
0
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4,000
3,000

7DQDVKL:RUNV
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(million yen/t-CO2)

6,000
4,50
0
3,00
0
1,50
0
0

10
8
6
4
2

0
2017 2018 2019 2020 2021 (FY)

(%)

100

800

400
200

(OHFWULFSRZHU N:K

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6R[ NJ*DVROLQH N/

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60

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

40

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

80

600

0

Waste landfill rate

200

CO2 emissions(t-CO 2 )20,00016
12

15,00010,000

8

5,000

4

0

0
2017 2018 2019 2020 2021 (FY)

5,000

(%)

100

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0

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2017 2018 2019 2020 2021 (FY)30,00024,00018,00012,000
6,000

0

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(million yen/t-) CO2

6
5
4
3
2
1

0
2017 2018 2019 2020 2021 (FY)12,000

9,000
6,000

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100
80

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3,000

60

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0
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2017 2018 2019 2020 2021 (FY)100

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100

4,000
2,000




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60

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6
5
4
3
2
1

0
2017 2018 2019 2020 2021 (FY)

Amount of waste disposed ofAmount of waste generated(t/year)

3,000
2,000

1,000
0

Waste landfill rate(%)

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0

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CO2 emissions

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60

3,000

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6
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800

10

2,400

8

1,800

6

1,200

4

600

2

200

0

0
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100
60

400

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5
4
3

2,000

2

1,000



0

102017 2018 2019 2020 2021 (FY)

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800
600(t-CO 2)

20

1,200

400

16
800

12

100

4
0
2017 2018 2019 2020 2021 (FY)0

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15
12

600

9

400

6

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302017 2018 2019 2020 2021 (FY)

(million yen/t-CO 2)

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6,000

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0

0
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300
240
180

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1,200
900
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300
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50
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300

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