Product Stewardship / Product Safety / Quality Assurance
Examples of Initiatives
Risk Assessment and Management throughout the Entire Product Life Cycle
With regard to the chemicals (products) that it uses and sells, Sumitomo Chemical conducts risk assessments that span theentire product life cycle and all that could be affected, including internal operators, neighboring residents, the surrounding
environment, customers, and consumers. The Company supports the Ministry of the Environment’s Eco-First Program andcompleted appropriate whole life-cycle risk assessments for its products manufactured or sold in annual amounts of one ton
or more by fiscal 2020 to promote the voluntary initiatives (GPS/JIPS) adopted by chemical industry associations. The results ofthese assessments are compiled into a safety summary and made publicly available online, including on the Japan ChemicalIndustry Association (JCIA)’s portal website (https://www.jcia-bigdr.jp/jcia-bigdr/en/material/icca_material_list). From fiscal
2021, we will continue to conduct appropriate risk assessments of products that are newly included in the scope through, forexample, product development (reinspection of risks of already assessed substances based on the latest insights).
In conducting chemical risk assessments, it is necessary to collect information regarding the hazards associated with eachproduct and the levels of human and environmental exposure when products are handled. Based on the information needed forthese risk assessments, we work to ensure that customers and employees handle chemical substances safely. To this end, we havecreated a collaborative framework centering on the Responsible Care Department and encompassing the frontlines of production
and our internal research laboratories, which possess specialized technologies in risk assessment and safety engineering. To
estimate exposure levels, the Company draws on projection models and expert insights in Japan and overseas and has developed
its own simulation program. We also use the latest technology to efficiently conduct highly precise risk assessments. In line with
our internal rules, during the development of new products, we collect data regarding risks and hazards for all handled substances
before entering the production stage and survey and respond to all relevant laws and regulations. We will continue to conduct risk
assessments based on the most up-to-date information available.
Risk Management for Product Safety
As for risk assessments of product safety, it is necessary to assess the risks of chemical substances in products as well as the risks
associated with product applications and uses. Taking into consideration not only their use by our direct customers but also
the use and disposal of such products by their end-users, we conduct risk assessments of applications and uses using failuremode and effects analysis (FMEA)* and other methods in addition to chemical substance risk assessments. Sumitomo Chemicalconducts rigorous risk assessments of new products and reassesses items already on the market. In fiscal 2022, we performed 56
risk assessments. Going forward, we will continue to conduct rigorous risk assessments of new products and regularly conduct
reassessments of products already on the market. In addition, we continue supporting Group companies in conducting similar
product risk assessments and countermeasures.
* FMEA: A systematic method of analysis for detecting potential malfunctions and defects with the objective of their prevention1

Product Stewardship / Product Safety / Quality Assurance

Providing Products and Services of Stable QualityIn order to continue to supply its customers with satisfying products and services that can be used with peace of mind, theSumitomo Chemical Group has established quality assurance systems based on quality management systems (such as ISO
9001*1) and manufacturing and quality management guidelines (GMP*2) appropriate for each product and service. In addition tomaintaining thorough day-to-day product quality control, we are committed to further improving product quality.
When a problem related to the quality of our products or services occurs, we grasp the facts and determine the scope ofimpact in line with internal rules. We then take immediate action, such as contacting affected customers and replacing products.
We subsequently work to identify the root cause of the problem, formulate and implement recurrence prevention measures, andimplement those measures. Moreover, from the perspective of preventing recurrence of similar quality problems, depending on
the severity of the problem, we disseminate information related to the root cause and recurrence prevention measures within
the Company and to Group companies. We are committed to ensuring the prevention of problems in the first place.
■ Flowchart of How We Handle Quality Problems

Qualityproblem
arisesManufacturing Plant,
Operating Department

Manufacturing Plant,
Operating Department

Grasp the facts anddetermine the scope ofimpact

Identify the root cause ofthe problem

Immediate Action
Contact affected customers
Replace products, etc.

Share
information

Company and Group
Companies
Disseminate
throughout

Formulate andimplement recurrence
prevention measures

In fiscal 2022, there was one major quality problem in the Sumitomo Chemical Group. We are investigating the cause of thisproblem and taking thoroughgoing measures to prevent a recurrence. We are sharing the knowledge gained and rolling out
countermeasures across the Group. Going forward, we will also work to strengthen quality assurance for the entire Group by
sharing information and activities related to quality and product safety. Furthermore, in order to continue supplying products
and services of stable quality worldwide while addressing growing supply chain diversification accompanying its businessexpansion and the increasingly sophisticated needs of customers, the Group is enhancing its global quality assurance systemthrough measures that include strengthening the management of overseas suppliers and contractors.
*1 ISO 9001: The international standards on quality management systems issued by the International Organization for Standardization (ISO).
*2 Good Manufacturing Practice (GMP): Guidelines relating to the manufacturing and quality management of pharmaceutical products, etc.

The Information Sharing System and Ensuring thorough Compliance
The governments of Europe, the Americas, China, and the Asia Pacific region hold considerable way over trends in global laws
and regulations. To ensure thorough compliance, we post product stewardship specialists at our regional headquarters in theseareas and are constructing a system to swiftly collect information related to regulatory trends. Especially in Europe, China, SouthKorea, Taiwan, Southeast Asia, and India, where there is active movement regarding legal revision/improvement, we are appropriately complying with the chemical regulations of each country in cooperation with our group companies.
As a response to the REACH Regulation in Europe, which is a world leader in terms of laws and regulations, we are moving
forward with appropriate legal registration, managing our supply chain, and properly transferring information. In addition, ourlocal Group company Sumitomo Chemical Europe is drawing up letters about its registration status in response to its customers’
requests as well as a declaration of conformity, which states the status of compliance and certificate acquisition with regard tovarious regulations.
In fiscal 2022, there were no reports of violations of regulations for Sumitomo Chemical products and services at any stage of
their life cycles.

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Product Stewardship / Product Safety / Quality Assurance

Effective Use of SuCCESSIn order to appropriately manage and effectively use information on chemicals handled by the Company, such as theircomposition, toxicological information (risks and hazards), and regulatory requirements, Sumitomo Chemical has developed theComprehensive Chemical Management System (SuCCESS).*1 This system is used in order to respond to inquiries from customers
concerning substances contained in our products and precisely comply with laws and regulations in Japan and around theworld, such as the REACH Regulation in Europe. We also use this system to create SDSs*2 in around 40 languages to comply withGHS*3 and accurately and efficiently communicate hazard information throughout the supply chain. This system is also being
proactively rolled out to Group companies. We had installed the system at 15 Group companies in Japan and overseas as of fiscal
2022. In addition, we are using SuCCESS to calculate the manufactured volumes reported to the government under the chemicalsubstances control law via a substance volume tracking (SVT) system as well as to calculate exported volumes.
*1 Sumitomo Chemical Comprehensive Environmental, Health & Safety Management System (SuCCESS)*2 Safety Data Sheets (SDS): SDSs include information on the safe handling of chemical products (properties, handling methods, safety measures, etc.) and should be created incompliance with the Japanese Industrial Standards (JIS) and the standards set by the International Organization for Standardization (ISO).
*3 Globally Harmonized System of Classification and Labeling of Chemicals (GHS): In 2003, the United Nations established these global rules for how to convey information
about the classification and degree of hazards for chemical substances.

■ SuCCESS Comprehensive Chemical Management System
Management of chemical composition, toxicological, regulatory information based on tree-shaped structure
Composition Information
Composition, Hazardous Ingredients, etc.

Physical and Chemical Properties
Color, Shape, Boiling Point, etc.

Process Safety-Related Properties
Chemical A

Flash Point, Ignition Temperature,Explosion/Flammability Limit, etc.

Safety Information
Toxicological Information, etc.

Environmental Impact
Ecotoxicological Information, etc.

Legal Regulation Information

Providing Toxicological Information
To ensure its products are handled safely, Sumitomo Chemical uses SDSs and labels to provide customers with toxicological andregulatory information about the chemical substances they contain and the hazard data consolidated in SuCCESS. Furthermore,
especially regarding products requiring warnings about their handling, we create yellow cards that are a simplified version oftheir SDSs. This provides logistics operators with the information they need to ensure they can respond appropriately to anemergency situation during transportation.

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Product Stewardship / Product Safety / Quality Assurance

Sharing Information on Chemicals in Products
Countries and regions around the world are moving forward with regulations on chemicals in products, as represented by theEuropean Union’s RoHS Directive*1 and REACH Regulation.*2 Because the content and required action for these regulations differs
by country, region, and product field, we need to properly manage the chemicals present in not only final products but also raw
materials and parts, and we need to accurately share this information on the chemicals present across the supply chain.
As a founding member of the Joint Article Management Promotion-consortium (JAMP), Sumitomo Chemical encourages
acquiring and sharing information using chemSHERPA, which is an information-sharing scheme promoted by JAMP, andprovides information in response to customer demands.
*1 RoHS Directive: An EU law related to restricting the use of specific hazardous substances, such as those in electric and electronic equipment*2 REACH Regulation: A regulation related to the registration, evaluation, authorization, and restriction of chemicals within the EU

Laboratory Animal Welfare
In the process of developing useful chemical substances, a large variety of safety assessments are required. With this in mind,
Sumitomo Chemical is actively developing new assessment methods, including structure-activity relationship approaches, andminimizing the use of laboratory animals for safety assessments. However, assessments of impact on humans, animals, and theenvironment cannot be completed without conducting experiments using laboratory animals. Sumitomo Chemical therefore
advocates the humane treatment of laboratory animals and applies the 3Rs*3 of replacement, reduction, and refinement to
conduct animal studies appropriately with due consideration for animal welfare.
Furthermore, we are working hard to confirm whether subcontractors of animal experiments and suppliers of animals used inexperiments similarly conduct animal studies with appropriate consideration for animal welfare.
*3 The 3Rs: From the Law for the Humane Treatment and Management of Animals
Replacement: To the greatest extent possible, replace methods that involve animals with those that do not.
Reduction: To the greatest extent possible, reduce the number of animals used.
Refinement: To the greatest extent possible, refine methods to minimize the suffering of animals.

Responses to Latest Emergency Issues, Including Reducing Marine Plastic and Microplastics
Microplastics, plastic additives, and marine plastic pollution have become a global problem in recent years. Recognizing the importance of this issue, Sumitomo Chemical quickly agreed to the measures of the Japan Plastics Industry Federation and bolstered its internal education system. We also participate in the International Council of Chemical Associations (ICCA) and Japan Chemical Industry
Association’s task force. We are working to keep abreast of the latest issues and are also proposing our comments to theaforementioned organizations.

Looking Ahead
Sumitomo Chemical promotes appropriate risk-based chemical management and continually conducts safety risk assessmentsof all products, including newly introduced items.
In response to strong social demand for the proper management of chemicals, the pace of establishment and revision of laws
and regulations relating to chemical management is expected to pick up in even more countries and regions in the near future.
Closely collaborating with Group companies in Japan and overseas, Sumitomo Chemical consistently undertakes thoroughcompliance initiatives that involve carefully studying information on the regulatory trends as well as enhancing the functions of
its comprehensive chemical management system (SuCCESS).
In addition, we will optimize our quality assurance system to respond to globalization and increasingly complex businessformats and supply chains as we continue to work to enhance the Group-wide quality assurance level so that customers can use
Group products and services with peace of mind.

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