CSR Report 2020

CSR Report 2020

Ed i t o r i a l
Po l i c y

Period Covered by This CSR Report
April 1, 2019 through March 31, 2020 (ﬁscal 2019).
Some activities conducted in ﬁscal 2020 are also
covered.

Guidelines Referenced■ GRI Standards

This report references GRI standards 2016.
The GRI Content Index is published on the following
website:https://global-sei.com/csr/download/

Boundary of This CSR Report
Sumitomo Electric Industries, Ltd. and its consolidated
subsidiaries (383 companies)
In this CSR Report, Sumitomo Electric, the Company
or our company refers to Sumitomo ElectricIndustries, Ltd., Group companies or aﬃliates refers
to the consolidated subsidiaries of Sumitomo Electric,
and the Sumitomo Electric Group or the Group
refers to Sumitomo Electric and its Group companies.
● When quantitative information is disclosed,

Sumitomo Riko Company Limited, Nissin Electric Co.,
Ltd., SUMITOMO DENSETSU CO., LTD. and TECHNOASSOCIE Co., Ltd., which are listed on stock
exchanges in Japan, and their consolidated
companies are excluded. In some cases, Sumitomo
Electric alone or only the Company and limited
consolidated subsidiaries or some of theequity-method companies are included. The items
referenced within such a speciﬁcally limited
boundaries are indicated in the text or footnotes inthe table or graph. The CSR management of the listedcompanies in the Group is introduced in P19 and P20.

● For details of the boundary of data collection for■ Environmental Reporting Guidelines 2018 issued

by the Ministry of the Environment of Japan.

Eﬀorts to Improve the Reliability of
the Disclosed Information
To ensure the accuracy and completeness of theperformance indicators, we have engaged an
independent third party to provide assurance on them,and the indicators subject to the assurance aremarked accordingly. In addition, comments on our
initiatives and disclosure from an external expert in thisﬁeld are published to enhance the credibility.

Introduction of the Disclosed Media
Other Than This CSR Report
The acquisition of ISO 14001 certiﬁcation and a tableshowing correlation of employee support programswith relevant laws are published on the following
website:https://global-sei.com/csr/download/

environmental indicators, see Explanation of theBoundary in P60.

Date of Publication
E SG Data● ESG data are presented in P76 to 78.

01 CSR Report 2020

November 2020
(Last CSR Report: published in November 2019; and next
CSR Report: scheduled for release in November 2021)

Basic Value Standards

Business Outline

05

Top Message

07

Mid-term Management Plan VISION 2022

08

2019 Highlights

09

Financial and Non-Financial Highlights

11

Our History and Business

13

Global Business Expansion

15

CSR Management

17

Targets and Actual Results in Fiscal 2019 /Targets for Fiscal 2020

19

CSR Management of Listed Companies
in the Group

21

Relationships with Stakeholders

22

CSV Activities

25

R&D Group

26

Automotive

27

Infocommunications

28

Electronics

29

Environment & Energy

30

Industrial Materials

31

New Business Development

32

Social Contribution Activities

Groupʼs CSR Activities

SocialContribution

Core
Category
Social Contribution

Quality37

Product Quality & Product Safety

Core Category

Supply Chain

41

Supply Chain

Human
Resources

45

Diversity

49

Safe and Sound Workplace52

Human Resources Development

55

To Be the Safest Company in the World

57

Environmental Management

61

Activities to Prevent Global Warming

64

Promotion of Resource Conservation and Recycling

65

Reduction of the Release of Harmful Chemical Substances

66

Initiatives to Address Water Risks

67

Expansion of Environmentally Conscious Products

68

Biodiversity / Environmental Accounting

69

Corporate Governance71

Risk Management

73

Compliance75

Respect for Human Rights

76

ESG Data

79

Independent Third Party Assurance Report

80

Comments from an External Expert

Environmental
Preservation

Governance

Human Resources

Environmental
Preservation

Supply Chain

Core Category

QualityCore Category

Core Category

Groupʼs CSR Activities

Core Category

Business Outline

03

Basis for Management

CONTENTS

Basis for Management

Governance
CSR Report 202002

Basic Value Standards
The Sumitomo Spirit
The Sumitomo Spirit grew out of the guiding principles set down in his later years by the founding father of the House of Sumitomo,
Masatomo Sumitomo (1585 - 1652), in Monjuin Shiigaki (the Aphorisms of Monjuin, which describes how a merchant should
conduct his business). The Sumitomo Spirit has been passed down and elaborated through the history of Sumitomo, which mainly
operated copper business. The essence of the Spirit was distilled in the Business Principles codiﬁed in 1891. Also integrated into
the Sumitomo Spirit are other beliefs and principles behind business decisions, and remarks made by Sumitomo managers, whichhave been handed down through generations. The pioneering ideas of the Sumitomo Spirit, which also reﬂect todayʼs concepts ofcompliance and CSR, have been steadfastly inherited as a commonly held asset of Sumitomo Group companies.

Business Principles
Article 1

Article 2

Sumitomo shall achieve prosperity based on solid
foundation by placing prime importance on integrity andsound management in the conduct of its business.

Sumitomoʼs business interest must always be in harmony
with public interest; Sumitomo shall adapt to good times
and bad times but will not pursue immoral business.

Traditional Beliefs and Principles●

Attaching Importance to Technology

Sumitomoʼs original copper business centered on the nanban-buki(foreign-style) reﬁning technique, which at the time comprised theleading edge of smelting technology. The business policy of valuing
technology and tackling the development of new technology has
been a driving force in the evolution of Sumitomo business fromthe very beginning.
●

Respect for Human Resources

Sumitomoʼs history is accentuated with events that demonstrate
the great value that is attached to opinions of those working in theﬁeld. Over the years, Sumitomo has established a corporate culture
in which frank discussions are cherished and human resources are
given the utmost importance. Sumitomo has always considered thatpeople make the enterprise and attached importance to humanresources. This tradition has coexisted with the commitment
among Sumitomo personnel to character cultivation.

●

Long-Range PlanningThis principle is derived from Sumitomoʼs original experience incopper mine management which requires long-term, continuous
consideration. Business development with a future-looking,long-term view, complemented by a wider perspective to ensure
national and social interests, is one of the factors that have madeSumitomo distinctive.
●

Mutual Prosperity, Respect for the Public GoodThis phrase represents the principle that Sumitomoʼs businessmust beneﬁt not only Sumitomo but also the nation and society ingeneral, and everyone in Sumitomo is required to focus not only
on making money but always conduct business in harmony withpublic interests. Also demonstrated by its more than century-longeﬀorts to solve environmental problems in the Besshi Copper Mine,
this spirit has always remained unchanged at Sumitomo.

Monjuin Shiigaki (the Aphorisms of Monjuin)
Masatomo Sumitomo was born in 1585 of the late Sengoku Period, in Maruoka,
Echizen (now Maruoka-cho, Sakai-shi, Fukui Prefecture) as the second son of asamurai warrior family, but entered priesthood in Kyoto at the age of 12. His

intelligence led him to be given the name Monjuin, after Monju Buddhist saint who
embodies enlightened wisdom. He later left the priesthood and started his own
business to trade books and medicines, which was the origin of the House of

Sumitomo. Even after he left the priesthood, many people continued to ask for histeachings and respect his faithful instructions. The fact that the founding father

was a widely respected Buddhist priest is the unique feature of the Sumitomo Group.
A letter written by Masatomo Sumitomo (Monjuin) in response to a family memberʼsrequest for guidance on conducting business was Monjuin Shiigaki.

Figure of Masatomo
Sumitomo (Monjuin)※

Signboard of the
medicine shop operatedby Masatomo※

Banji-nissei (do your sincere best in not only business but also every aspect of your life)
Consisting of ﬁve articles, Monjuin Shiigaki contains ideas reﬂecting the unstablesocial conditions of Kyoto in the 17th century, when it was written. The preamble
admonishes us to pay attention to any matters including business and workwholeheartedly on everything. This precept “Banji-nissei” has been passed down

continuously, by way of hoping that each one of us in Sumitomo does not focus only

on making money but improves the personality and develops the character. This lofty
document urges us to persist in sincere and careful eﬀort and to cultivate goodcharacter.

The Sumitomo Electric Group positions this “Banji-nissei” as the keyword representing

the Sumitomo Spirit.

Calligraphy work Banji-nissei, which was given by
Chairman Wang Jianyi of Futong Group Co., Ltd.,
China to commemorate the launch of joint ventures※ Collection of Sumitomo Historical Archives

03 CSR Report 2020

Basis for Management

The Sumitomo Electric Group Corporate Principles
On the occasion of Sumitomo Electricʼs centennial celebration in 1997, the Sumitomo Electric Group deﬁned the Sumitomo
Electric Group Corporate Principles as a new management philosophy arising from the Sumitomo Spirit. The Corporate
Principles underscore our basic policy of commitment to our important stakeholders--our clients, shareholders, society, theBusiness Outline

environment and our employees--and rededicate the Group to the importance of compliance and trust.

Each company of the Sumitomo Electric Group shall●Oﬀer the very best goods and services to satisfy customer needs.

●

Build technical expertise, realize changes and strive for consistent growth.

●●

Maintain high corporate ethics and strive to become a company worthy of societyʼs trust.

●

Nurture a lively corporate culture that enables employee self-improvement.

Groupʼs CSR Activities

Contribute to creating a better society and environment,with a ﬁrm awareness of our social responsibility.

To realize a Glorious Excellent Company, which is the ideal state of the Sumitomo Electric Group, we must uphold the Sumitomostrong will and sincerity in an honest manner. In September 2005, the Sumitomo Electric Group Charter of Corporate Behavior was
created to express the essence of our Group-wide code of conduct in a more straightforward and easy-to-understand manner, so
as to help each and every administrator and employee in the Group make judgments and act to realize the principles presented in
the Sumitomo Spirit and the Sumitomo Electric Group Corporate Principles.

●

We will aim to provide useful and safe products andservices that will satisfy customers in all aspects
including quality and cost.

●

We will aim to develop new, original and proﬁtablebusinesses and products by using our unsurpassed
creativity in meeting customer demands.

●

We will strive for consistent growth of the Sumitomo
Electric Group, by consistently conducting our businesses
with a global perspective and taking full advantage ofthe Groupʼs dynamic business operations.

●

We will contribute to the building of a sustainable
society, taking voluntary and active initiatives topreserve the global environment.

5. Observance of Laws and Regulations
We will observe national and international laws andregulations and always act fairly and openly.

7. Conduct as a Member of Society●●

We will contribute to creating a better society, with a
ﬁrm awareness of our social responsibility as a good
corporate citizen.
We will maintain a strong stand against any force thatthreatens public order and safety.

8. Harmony with the International Community●

As a corporate member of the international community,
we will respect the culture and customs of every regionof the world and contribute to the development of thoseregions.

9. Safe, Sound Workplace and
Employeesʼ Growth and Development●●

We respect the rights of all individuals and will endeavor
to make our workplaces safe, sound and energetic.
We will strive to respect personality and individuality ofthe employees and support their professional
development and career to enable self-realization.

10. Disclosure of Relevant Information andPromotion of Communication with Society●●

We will aim to disclose appropriate corporate
information to our various stakeholders, including
shareholders.

Governance●

We will promote fair, transparent and free competitionand sound trade.

Environmental
Preservation

4. Contribution to Preservation of
the Global Environment●

Human Resources

3. Growth and Development of
the Sumitomo Electric Group throughGlobal Business Activities

6. Fair and Proper Business Activities

Supply Chain

2. Development of New andOriginal Businesses and Products

Quality

1. Provision of Useful and
Safe Products and Services

Social Contribution

Spirit and the Sumitomo Electric Group Corporate Principles as a basis of all business activities and conduct business with ourCoreCategory

The Sumitomo Electric Group Charter of Corporate Behavior

We will also promote good communication with society
through public information and hearings.

CSR Report 202004

To p M e s s a g e

With the concerted eﬀorts of the entire group,
we will work to make society“environmentally friendly,” “safe and secure,” and“comfortable with much potential for growth.”
Osamu Inoue President & COO Sumitomo Electric Industries, Ltd.

Prefaceyear-on-year to 127.2 billion yen in spite of our best efforts to
reduce costs on a global scale.

I sincerely express my gratitude for your continued support andPriority initiatives forthe realization of VISION 2022

understanding of Sumitomo Electric Groupʼs business activities.
I also thank you for reading this CSR Report 2020.
During the period covered by this report, while the global
economy was expanding moderately on the whole until thethird quarter with steady economic recovery in the UnitedStates and other factors, economic activities contracted sharply
after January 2020 due to the worldwide COVID-19 pandemic.
Also in the Japanese economy, although personal consumption
recovered due to improvement in the employment situationand other factors in the first half, consumer spending began to
decline as a result of the consumption tax hike in October lastyear and the situation became even worse with the impact of
COVID-19 in the fourth quarter.
The business environment surrounding the Sumitomo ElectricGroup was very severe with the impacts of decreases in car
production and smartphone sales, lower prices of optical fibers
and cables, stronger yen and copper price decline, along withthe sharp slowdown of economic activities due to COVID-19 in
the fourth quarter.
Under these circumstances, our consolidated results for fiscal
2019 recorded net sales of 3,107.0 billion yen, a year-on-year
decrease of 2.2%. Operating income also dropped by 23.5%

05 CSR Report 2020

Web

Our group is currently committed to taking “SEQCDD " onestep further under the concept of “Contributing to a better
society by leveraging our expertise in connectivity andtransmission technologies through concerted efforts of theentire group to achieve the mid-term management plan
VISION 2022※. Specifically, we set the three priority initiativesof “enhancement of manufacturing capabilities," “increasing
global presence" and “creation and enhancement of leading
technology" with an aim to become a “Glorious Excellent
Company," which is an ideal future state for our group.
As to the enhancement of manufacturing capabilities, we firmly
believe that the foundation of manufacturing is to ensure safety
and aim to meet the target of accomplishing “zero accidents inpeople, goods and equipment" to become a company with thehighest level of safety in the world. While also focusing on the
promotion of safety measures for facilities, we are committed
to the thorough separation of vehicles from people toeliminate forklift accidents through the review of factory
layouts to avoid encounters of people with forklifts. We have

※ For the details of VISION 2022, please see the following page.

https://global-sei.com/company/strategy.html

Glossary ＊SEQCDD

An acronym for Safety, Environment, Quality,
Cost, Delivery and Research & Development

also introduced a system to have plants inspected by plantin dirty water to purify the water into potable clean water.
The supply of rectangular magnet wires that help reduce themanagers from different divisions to identify issues fromour group, including Sumitomo Wiring Systems, Ltd., achieved
the target of zero serious accidents although the target set

size of motors used in vehicles and increase their output will

Basis for Management

different perspectives and encourage improvement. As a result,

eventually result in lower CO2 emissions. The combination of
CPV and redox flow batteries offers a means to supply

renewable energy to society. While our products contribute toseparately for each fiscal year on the total number ofaccidents, including those resulting in remaining disabilities andthe accident score, was not met. We will further enhance ourefforts to achieve the targets.

society as parts and their contribution is low-key, we consider

that we are expanding the fields where we make a steady andreliable contribution to society.

manufacturing capabilities, we work for the day-to-day
improvement of more than 200 items every month. We also
promote AI-based improvement through close coordination
between the plants and Plant & Production Systems Engineering
Division with the IoT R&D Center playing a pivotal role, whichhas produced material results in the plants in our group.
products to car manufacturers in the US and Europe. We havecompleted the investment for the expansion of shrinkable tube
production in the US to strengthen our system to supply
shrinkable tubes to overseas car manufacturers. Moreover, we
acquired two group companies of Sinterwerke, a powdered
metal component manufacturer in Europe, in May 2019 toLearning from the lessons of
the COVID-19 pandemic
To address the spread of COVID-19, our group has launched
the New Coronavirus Infection Task Force chaired by me toestablish a system to grasp the level of the impact of

COVID-19 on our business bases located all over the world ina timely manner and take prompt measures to respond to it.

Based on it, our manufacturing sites aim to further enhance theconventional measures such as improvement activities andshop-floor training to make plants more advanced andstronger. For clerical sections, we founded the Work Style

Subcommittee, in which the relevant divisions serve as theincrease our market share for overseas customers. In thePenh Capital City, the Kingdom of Cambodia was completed inAugust 2019, while in May 2020 we received an order for ahigh-voltage DC power transmission cable system in Germany
power sources are developed, with the southern region, which
demands a large amount of electricity. We thus work to reinforce
our foundation on a global scale in various business fields.

which has been expanded with the impact of the COVID-19
pandemic. The subcommittee also facilitates internal

discussions to ensure that our efforts will lead to business andwork style reforms for productivity increases even after the endof the pandemic. While we already formulated business

continuity plans (BCP), we have learned from the COVID-19
pandemic that our understanding of the situation of thesecondary and tertiary suppliers in our supply chain might haveTo accelerate the creation and enhancement of leading

been insufficient. Based on this lesson, we are now promoting

technology, we made organizational reforms including thethe CASE field, which is expected to grow substantially in the

future, into Automotive Business Unit beyond the conventional
border between the unit and Infocommunications Business
Unit. We also set up CAS-EV Development Promotion Office in
Sumitomo Electric to conduct even more sophisticated researchthan one supplier and other measures. Since natural disasters
have occurred more often and on a larger scale in recent

years, we have to further enhance our risk management in the
supply chain and make sure to conduct periodical reviews.

Conventionally, it was a major prerequisite that the businesskeeps growing and expanding and we tended to focus onwhat we should do for the growth and expansion as well as

the development of new products. Under the current situation

Social contribution throughour businesswhere orders we receive are decreasing, I assume that weshould consider how we can continue our business in a
reliable manner as a foundation for our sustainable

As in the previous reports, this report also introduces examples
contribute to a sustainable global environment and humansociety through our sustainable business operations and CSR

activities, our company and the global environment on which
we are based, as well as the sustainability of human society.

As a nature of our business, the items we provide are not finished

The Sumitomo Spirit andthe Sumitomo Electric Group
Corporate Principles,
which relates to SDGs

power cables are an essential product to deliver electricity,

Positioning the Sumitomo Spirit and the Sumitomo Electric

improve the environment by supplying high-voltage DC cables

group has been committed to the creation and expansion ofwhich is a driving force of economic development. We help

to deliver renewable energy, which has attracted attention as ameasure to address climate change in recent years, to areas

Group Corporate Principles as its key management value, ourbusinesses as well as CSR activities. I consider that these

activities are also related to the SDGs adopted by the UN in

where a large amount of electricity is demanded. For water2015. For the creation of “environmentally friendly society,"

which purifies industrial wastewater and renders it harmless togrowth potential," which are targets for the mid-term

help prevent water pollution. The demand for POREFLON™

membrane has increased in China and is expected to further

grow because it removes fine particles, bacteria, etc. contained

A term for the trends in the automotive industry;an acronym for Connected, Autonomous, Sharedand Electric＊CPV

Concentrator
Photovoltaic System“safe and secure society" and “comfortable society with

Governancetreatment products, we provide POREFLON™ membrane,

Environmental
Preservation

products for end users but their components. For example,

contribution to society including various stakeholders.
Human Resourcesof our products that support society and explains how they

Supply Chainon high-voltage DC power transmission cables and other items.

the enhancement of the system to purchase items from more

Quality

integration of the research and development organizations forSocial Contributionthat connects the coast of the North Sea, where offshore windsecretariat, to assess the effects and problems of teleworking,Core
Categorymeantime, the construction of a traffic control system for Phnom＊CASEGroupʼs CSR Activities

For increasing global presence, we are raising the supply of ourBusiness Outline

Aiming to create strong factories, which are also a basis for ourmanagement plan VISION 2022, we will continuously makeconcerted efforts to provide values that lead to the solution ofvarious social problems.

＊SDGs（Sustainable Development Goals）

An acronym for Sustainable Development Goals, which are composed of
17 goals and 169 targets presented by the UN along with long-term
development guidelines for the period from 2015 to 2030

CSR Report 202006

Mid-term Management Plan VISION 2022
Basic Concepts

Contributing to a better society by leveraging our expertise in connectivity andtransmission technologies through concerted efforts of the entire group.
Overall Concept Diagram
A Glorious Excellent Company is Sumitomo Electric Groupʼs ideal future state.
Positioning the Sumitomo Spirit and the Sumitomo Electric Group Corporate Principles as our basic management value,
we will help create a better society through business activities.
In our growth strategy, we aim to diversify our technologies and products and create innovations that meet new social
demand in the fields of Automotive, Infocommunications, Electronics, Environment & Energy and Industrial Materials basedon the Manufacturing Base, Human Resources and Organizational Base and Financial Base we have developed, and will becommitted to enhancement of manufacturing capabilities, increasing global presence and creation and enhancement ofleading technology.

VISION 2022

Glorious
ExcellentCompany

Net Sales¥

Operating Income

ROIC

ROE

3,600 billion ¥230 billion 9 % or more 8 % or more

Sumitomo Electric Group’s Ideal Future State

Communications

Energy

ins
ma
e do
thes
t
r
o
upp
ons s
solutits, and
c
u
d
o
r
p
,
A diversity of materials

Mobility

Innovation Through Concerted Effort
Increasing
Global Presence
Enhancementof Manufacturing
Capabilities

Creation and Enhancementof Leading Technology

Automotive

Infocommunications

Industrial Materials

Electronics
Environment & Energy

Man
ufac
turin
g Ba
se

Human Resources and Organizational Base

e
l Bas
ncia
Fina

Corporate Social Responsibility (CSR)
The Sumitomo Sprit andthe Sumitomo Electric Group Corporate Principles

Our Priorities
Enhancement of
Manufacturing Capabilities
Taking SEQCDD one step further●●●

Aim for the worldʼs top safetycompany
Create strong factories throughcontinuous improvement (kaizen)
Exert our strength by sharing andpropagating technologies and bestpractices among Group
companies worldwide

07 CSR Report 2020

Increasing Global Presence●●●

Work to increase market sharewith global customers
Create new business models that
anticipate market changes

Creation and Enhancement of
Leading Technology●●

Enhance the efficacy of ourmarketing efforts●

Continue to enhance coretechnologies from materials toprocesses
Innovation that anticipateschange in the automotive andenergy fields and exploitscommercialization opportunities
with agility
Challenge ourselves to create
innovative technology thatencourages social reform2019 Highlights

Major events during fiscal 2019 are listed below.

2 020

5

1

Basis for Management

2 019◆ Delivered POREFLON™ water treatment◆ POWER DEPO™ Ⅲ, a lithium-ion energy

Business Outline

membrane modules (with a total processing
capacity of 100,000 ㎥/day) to three large
sewage treatment plants in China

storage system for domestic use, wasregistered as a model to receive a subsidy
of FY2019 ZEH＊ support project8◆ Completed the construction of a traffic

Groupʼs CSR Activities

control system for Phnom Penh
Capital City, the Kingdom of Cambodia
Sumitomo Electricʼs water treatment membrane modules
delivered to Wastewater Treatment Plant in shipan town,
Jianyang City, Sichuan Province

2

Traﬃc control center

Social Contribution

wind farms at Akita Port and Noshiro Port in
Akita Prefecture, which are the first large-scalecommercial offshore wind farms in Japan,
jointly with Kajima Corporation

Core
Category◆ Started the full-scale construction of offshore

QualityCompletion ceremony hosted by
Phnom Penh Capital City

Submarine cable being shipped (sample image)Supply Chain

113◆ Selected as a 2020 Health and◆ An energy management system equipped

Productivity Stockwith Sumitomo Electricʼs “sEMSA™” was for
LNG satellite supply＊ and other purposes［Functions］［Functions］

Systematicallymonitoring andcontrollingthe equipment

Calculating a planfor optimallyoperating distributed
energy sources

MATE
series 1

sEMSA™ 2◆ Completed the construction of powertransmission and transformationequipment for Japanʼs largest onshore
wind farm “Wind Farm Tsugaru”● Prediction of power

distributed energy
sources

generation/demand● Optimum operation● Feedback

plancompensation

Environmental
Preservation● Controlling

Human Resources

Composition of ENERGYMATE™,
an energy management system equipped with sEMSA™

Integrating power receiving/transforming equipment anddistributed energy sources
Load on thepremises

PV power
generation

Cogeneration
systemStoragebattery

GovernancePower receiving/transforming※ ENERGYMATE™ is a trademark or registered trademark of Nissin Electric Co., Ltd.
※1 Monitoring and control system products※2 A system to calculate a plan to operate distributed energy sources based on the prediction ofphotovoltaic power generation and demand and other data to ensure that the total energy cost is minimized

Glossary ＊ZEH (net zero energy house)

A house that aims to make the balance of annual primary energy
consumption “zero” by reducing energy use while also generatingenergy through photovoltaic power generation, etc.

Photo courtesy of Green Power Investment Corporation＊LNG satellite supply

Supply of liqueﬁed natural gas (LNG) by tankers, etc. to the areas
where pipelines have not been developed. LNG is stored and gasiﬁedin the premises of the users and used as city gas.

CSR Report 202008

Financial and Non-Financial Highlights

F i n a ncia l Overview
Sales in Japan and overseas and ratio of overseas sales by year
(100 million yen)

Ratio of overseas sales (%)

59.5

58.3

59.7

58.8

35,00030,00028,22829,331

28,145

58.5

60

55.8

55

30,822 31,780 31,070

50

25,00020,000(100 million yen)

16,46817,461

16,537

18,38818,583

17,352

1,731

1,800
1,600
1,400
1,200

1,505

1,435

1,345
1,198

1,000

910

800

15,000

1,076

1,663

1,203

1,181 1,272
727

600

10,0005,000

Operating Income and Proﬁt Attributable to
Owners of the Parent (Consolidated)

400
200

11,76011,87011,60812,434

13,197

13,719

2014

2015

2016

2017

2018

2019 (Fiscal year)00Overseas

Ｉn Japan

2014

2015

Operating Income

Ratio of Overseas

2016

2017

2018

2019 (Fiscal year)

Proﬁt Attributable to Owners of the Parent※Sumitomo Electric and consolidated subsidiaries

Return on Equity (ROE) and Return on Invested Capital (ROIC)＊

Total Assets and Net Assets (Consolidated)(100 million yen)

35,00030,00029,25827,42829,07329,99930,533（％）

30,84510

25,0009.1

820,00016,46915,00016,286

15,613

17,641

17,763

17,66810,000

6.5
6

6.8
6.5

7.7
7.2

8.1
7.9

7.6
7.3

4

5.4
4.7

5,000
2

0

2014

Total Assets

2015

2016

2017

2018

2019 (Fiscal year)

Net Assets

0

2014

(Note) We have adopted Partial Amendments to Accounting Standard for Tax Eﬀect
Accounting (Accounting Standards Board of Japan Statement No. 28, February 16,2018), etc. since the beginning of FY2018; therefore, with respect to FY2017, we haveretrospectively adopted the Amendments to Accounting Standard, etc. on those ﬁgures.

Capital investment

ROE

2015

2016

2017

1,152

1,177

2016

2017

2018

2019 (Fiscal year)

ROIC

R&D expenditures(100 million yen)

2,200
2,000
1,800
1,600
1,400

1,482

1,673

1,837

1,711

1,903

2,088

(100 million yen)

1,296

1,300
1,200
1,000

1,200

1,056

1,108

800

1,000

600

800
600

400

400

200

200
0

0

2014

2015

2016

2017

2018

2019 (Fiscal year)

2014

2015

Glossary ＊ROIC：Return on Invested Capital

09 CSR Report 2020

1,254

2018

2019 (Fiscal year)

Operating Proﬁt / Invested Assets =Operating Proﬁt/(Total Assets−Interest-Free Liabilities)

Basis for Management

N o n - fina ncia l O verview
Number and share of women in
section managers or higher positions

as of January 16 ofeach ﬁscal year

Business Outline

Number of employees in Japan and overseas andratio of overseas employees by year
Ratio of overseas employees (%)(Persons)

300,000
250,000

84.2

84.0

83.8

85.3

84.5

255,133
240,798 240,865 248,330

272,79685.1
283,910

85
84
83
82
81

200,000

80

60
50

20

22

10

50,00038,53739,236

39,63740,23142,418

2014

2015

2016

2017

2018

2019 (Fiscal year)

Overseas

Ｉn Japan10038,892

2014

Ratio of Overseas

No. of section managers

12
2017

No. of general managers

2.36

2.2

1,988

2.17

2.17

2.21
Legally required
percentage

2.1

1,970

2.0

0

0

2014

2015

2016

2017

2018

2019

2015

(Year)

Lost Time Injuries Frequency Rate＊ for Employees in Japan by Year

2016

2017

2018

0.94

1.61

1.06

1.06

1.63
1.15

1.66
1.02

1.20

1.20

Emissions converted toCO2 equivalent(thousand tons-CO2e/year)
1,600
1,200

0.19

0.14

0.11

0.13

0.11

0.03

1,000

0

0

0.07

0.07

0

0

0

600

2013

2014

2015

2016

2017

2018

0.03

1,456

2019 (Fiscal year)

All industries
Manufacturing industry
Sumitomo Electric Group
Sumitomo Wiring Systems, Ltd. (SWS)

400
200

1,497

1,575

1,541

711

700

732

848

833

744

730

764

727

708

13.0
1,373
746
627

0

2014
ResultOverseas

2015
ResultIn Japan

2016
Result

2017
Base

2018
Result2019 (Fiscal year)
ResultReduction ratio

Governance(Note) The lost time injuries frequency rate for employees in Japan in the Sumitomo ElectricGroup covers Sumitomo Electric and its 41 aﬃliates in Japan (excluding SWS and theother listed companies), and the frequency rate in SWS covers SWS.

800

1,430

0
2
4
6
8
10
12
14

Environmental
Preservation

1,400

0.5
0

1.66

Reduction ratio (%)

2.2

Human Resources

1.58

1.80

(Year)

Greenhouse Gas Emissions and Reduction Ratio(in Japan and overseas)
0

1.83

2020

(Note) Total for Sumitomo Electric and its qualiﬁed Group companies including
Sumiden Friend, Ltd.

（Frequency rate）

2

2019

Supply Chain(Note) Average of the total working hours in each year from January to December of
each of the Sumitomo Electric employees (including those on loan to Sumitomo
Electric aﬃliates and other organizations within the Works)

1

2.29

Quality

2,024

Employment rate as ofJune 15 of each year

2.29

2.3

1,950

1.5

16
2019 (Fiscal year)

Social Contribution

2.4

1,999

15
2018

Core
Category

（％）

2,100

2,000

42

38

(Note) Above graphs cover personnel data for Sumitomo Electric employees,
including those on loan to Sumitomo Electric aﬃliates and other organizations.

(Hours)

2,047

10

2016

Employment Rate of the Physically or
Mentally Disabled by Year

Average Total Working Hours by Year

2,042

10

2015

34

30

Share of women in section managers or higher positions※Sumitomo Electric and consolidated subsidiaries

2,050

28

2.2
2.0
1.8
1.6
1.4
1.2
1.0

58

53

46

40

38

32

30

100,000

0(Persons)

40

201,906 202,328 209,094 215,496 232,565 241,492

1.5

1.4

1.3

1.7

（％）

2.1

1.9

Groupʼs CSR Activities

150,000

86(Note) See Notes 1-2 of the graph of Greenhouse Gas Emissions and Reduction Ratio(in Japan and overseas) in P61.

Glossary ＊Frequency rate

Number of deaths and injuries caused by industrial accidents per million working hours. Used to express accident frequency.
The formula is: Number of deaths and injuries caused by industrial accidents / Total working hours x 1,000,000.

CSR Report 2020

10

Our History and BusinessStarting with copper wire production, the electric wire and cable business of Sumitomo Electric has expanded in the respective segments,
including the manufacturing of power cables and communication cables and then magnet wires, automotive wiring harnesses and electronic
wires for information equipment, in line with the development of society. In the meantime, we also began to diversify our business in earlyyears based on the technology to produce electric wires and cables. The production of cemented carbide tools and special steel wires
launched in 1931 and 1932 respectively was a firm step into the areas outside the electric wire segment. We have accelerated thediversification with the target of increasing the ratio of the non-electric wire business to 50% since the 1960s, and offeredinnovative products and technologies such as compound semiconductors, optical fibers, artificial diamonds andhigh-temperature superconductivity in sequence so as to support the changing times. The Sumitomo
Electric Group has thus continued to develop unique technologies and persistently
pursued new business opportunities, and is now conducting global business
operations in the following five major business segments:
automotive; electronics; environment & energy;
infocommunications; and industrial materials.

History

1897

Sumitomo Copper Rolling Works was founded.

1943

Started production of anti-vibration rubber and fuel tanks.

1900

Started production of coated wires.

1946

Opened a branch oﬃce in Tokyo (now the Tokyo Head Oﬃce).

1908

Started production of power cables.

1948

Started marketing sintered powder metal products.

1909

Started trial production of telecommunication cables.

1949

Entered into the business of construction of overhead transmission lines.

1911

Established Sumitomo Electric Wire & Cable Works(the foundation of the Company).

1957

Delivered the ﬁrst Japan-made television broadcasting antennas.

1961

Opened the Yokohama Works.

1962

Started production of IRRAXTM Tube electron beam irradiation tubes.

Manufactured and supplied the ﬁrst Japan-madeunderground high-voltage (11,000 V) cables.
1916

Opened a new factory (now the Osaka Works)

Delivered the wiring harnesses for four-wheel vehicles for the ﬁrst time in its history.
The Head Oﬃce was moved from Osakaʼs Konohana Ward to
the present address in Chuo Ward.

Started production of enamel wires.

11 CSR Report 2020

1920

Incorporated Sumitomo Electric Wire & Cable Works asa limited company (the establishment of the Company).

1931

Started production of cemented carbide ( IGETALLOYTM ) tools.

1932

Started production of special steel wires.

1939

Company name changed to the current name,
Sumitomo Electric Industries, Ltd.

1941

Opened the Itami Works.

1963

Started production of disc brakes.

1964

Started production of electron beam irradiation wires.

1968

Entered into the business of traﬃc control systems.

1969

Established its ﬁrst overseas production subsidiary.

1970

Started production of compound semiconductors.

Started development of ﬂexible printed circuits (FPCs).

Automotive
Basis for Management

Contributing to accelerating improvement delivered by
CASE and to the evolution of mobility
Our main automotive products are wiring harnesses, which are laid throughout an automobile to transmit power and information. Wiring harnesses
require advanced technologies to reliably transmit electricity and information to electrically-driven components and control equipment in the automobile
despite intense vibration and heat. In the Sumitomo Electric Group, Sumitomo Wiring Systems, Ltd. and AutoNetworks Technologies, Ltd. haveestablished such a prominent presence in the market that one out of four automobiles in the world uses Sumitomo Electricʼs wiring harnesses. Steadyadvances in the use of aluminum wiring harnesses have been helping reduce automobile weight. Our connecting technologies are essential for realizing
connected cars and autonomous driving, which must handle a huge amount of information, as well as for achieving widespread use of hybrid andelectric vehicles. We intend to become a mega-supplier with the wiring harness business at the core for an excellent harmony between automobiles,
people and society in the next generation.

Business Outline

Electronics
Supporting further evolution of mobile devices,automobiles and aviation equipment

Groupʼs CSR Activities

The diverse range of raw, wiring and other materials supplied by our group have supported the evolution of various electronic equipment at the core.
Flexible printed circuits (FPCs) are one of the main products of the Group. Their versatility in forming high-density circuits in a small area makes them awiring material adaptable to all kinds of increasingly complex equipment. We have electron beam irradiation technology used to produce electric wire
products and heat-shrinkable tube, and fluorine resin processing technology applied to printer toner fixing rollers. In addition to these proprietary
material development, design and processing technologies, we are experts in high-speed data transmission technology, constantly creating products tomeet demand for sophisticated functionality. We aim to become a global supplier of high-performance cables, components and materials by refining
these technologies and strengthening our supply chain to be successful in global competition.

Environment & Energy
Building new energy systems for the widespread use ofrenewable energy and other purposes

Industrial Materials

Supply Chain

Communication infrastructure is essential for society. Optical fiber cables and other components and equipment that support communications, suppliedby the Sumitomo Electric Group, play an active role in communication infrastructure. We began manufacturing optical fiber products in the 1970s.
Among them, those for over 10,000 km ultra-long distance submarine systems are required to exhibit high quality and high reliability. We have built apresence in the industry with our high technical expertise as represented by the Z fiber, which is an optical fiber developed for ultra-long distancesubmarine system applications. The Z fiber broke the world record for low-loss optical fiber. Our strengths also extend to Ultra-High-Fiber-Count Optical
Cable manufacturing technology and software development for visual- and optical-access devices. Increasing volumes of information are currently
exchanged throughout the world. With our technologies playing a key role in important connections, we will lead the age of high-speed, high-capacity
telecommunications by working on developing innovative new products that are one step ahead of and exceed various customer expectations, such ascompound semiconductors for optical/wireless applications developed via collaborative vertical integration from raw materials to finished devices.

Quality

Endeavoring to realize high-speed, high-capacity telecommunications meetingthe challenge of the increasing data traﬃc volume

Social Contribution

Infocommunications

Core
Category

We melt, solidify and roll copper. Sumitomo Electricʼs electric wire and cable products evolved from its copper wire production since its foundation. Witha solid foundation and proven track record of achievements among Japanʼs top-tier businesses in the category of low to ultra-high voltage electric wireand cable products, we support energy infrastructure throughout Japan. Currently, the technical expertise of our group is required for the construction of
new energy systems in line with trends such as international grid interconnection projects, primarily in Europe, infrastructure development in emerging
countries, increasing use of renewable energy and widespread use of electric vehicles. We aim to build a stronger global presence drawing on ourstrengths such as diverse high-value product families and associated services, project-planning expertise, overall capabilities involving affiliate companies
in the heavy electrical machinery and engineering fields and end-to-end system development from raw material to finished product.

Contributing to the growth of industries and social infrastructure bydeveloping and supplying high-functionality materials

Opened the Kanto Works.

1974

Started production of optical ﬁber cables.

1975

Contracted to construct a power transmission line in Iran.

1976

Received an order for a large telecommunications network project in Nigeria.

1978

Delivered and put into operation the world's ﬁrst bi-directional ﬁber
optic CATV system Hi-OVIS.

Sumiden Hitachi Cable Ltd.
(wires and cables for buildings and industrial equipment) started operation.
Sumitomo Electric Hardmetal Corp.
(powder metal and diamond products) started operation.

2004

A.L.M.T. Corp. was made a wholly-owned subsidiary.

2006

The HTS cable used in a power transmission grid in the U.S. started supplying electricity.

2007

Sumitomo Wiring Systems, Ltd. was made a wholly-owned subsidiary.

1981

Delivered the ﬁber optic LAN system for the ﬁrst time in its history.

1982

Succeeded in producing the worldʼs largest synthetic
monocrystalline diamonds (1.2 carats).

2008

Opened the Technical Training Center.

1996

Developed a technology for producing long-length oxide
high-temperature superconducting wires.

2009

Sumitomo Electric Device Innovations, Inc. was organized.

2010

Opened the WinD Lab, a new laboratory building.

2014

J-Power Systems Corporation was made a wholly-owned subsidiary.

2015

Started a demonstration test of the worldʼs-largest-class redox ﬂow battery system.

2019

TECHNO ASSOCIE Co., Ltd. was made a consolidated subsidiary.

1998

Developed and started marketing ecology wires and cables.

1999

Sumitomo Electric Fine Polymer, Inc. (ﬁne polymer products) started operation.

2001

J-Power Systems Corporation (high-voltage power cables) started operation.

2002

Sumitomo Electric Networks, Inc. (network equipment) started operation.
Sumitomo (SEI) Steel Wire, Corp. (special metal wires) started operation.
Sumitomo Electric Wintec, Inc. (magnet wires) started operation.

Governance

2003

Environmental
Preservation

1971

Human Resources

Materials produced by the Sumitomo Electric Group have evolved on the basis of its thin copper wire-making technology. Our cutting and grinding tools
made of materials such as diamond, cubic boron nitride and cemented carbide alloys support all fields of manufacturing throughout the world.
Additionally, special steel wires that reinforce concrete structures and tires and sintered powder metal parts used primarily in automobiles are essential
for the growth of society and industries. In response to the growing demand for lightweight automotive materials and the growth in the medical andaviation industries, we will offer tangible forms of innovative solutions for customer and social challenges, drawing on our world-class materials
development capabilities and production technologies.

Nissin Electric Co., Ltd. was made a consolidated subsidiary.
Sumiden Friend, Ltd. (Special subsidiary) started operation.

SEI Optifrontier Co., Ltd. (now Sumitomo Electric Optifrontier Co., Ltd.) was organized.

CSR Report 2020

12

Global Business Expansion
The Sumitomo Electric Group is developing business activities on a global scale, with 416 consolidated companies andover 280,000 employees around the world. While providing superior products and services, we respect the cultures andcustoms of the countries and regions in which we operate. As a corporate entity we conduct business in harmony withsociety, so as to contribute to the sustainable development of the economy and society.
Company Name

Sumitomo Electric Industries, Ltd.

Established

April 1897

Incorporated

December 1920

Net Sales by Region (Consolidated)

Europe and others 3,277

Osamu Inoue

President

Total forFiscal 2019

Asia 8,673

Capital Stock

99,737 million yen (as of March 31, 2020)

Head Oﬃce

4-5-33, Kitahama, Chuo-ku, Osaka, JAPANJapan 13,719

31,070(100 million yen)

Americas 5,402

Number of consolidated companies by country or area ／ Share in the number of employees

Europe and others

Japan

74

Share in the numberof employees

26.6

Americas

50

107
%

Share in the numberof employees

14.9

%

Share in the numberof employees

15.2

%

Companies
Consolidated

416

in total

Breakdown ofcompanies consolidated(as of March 31, 2020)

Consolidated subsidiaries (383)
Equity-method companies (33)

Asia

185
Share in the numberof employees

13 CSR Report 2020

43.3

%

Global Network

Basis for Management

History of the business development
on a global scale

single company. A total of 300 Japanese staff and 2,000

locals worked together on the project for 11 and a half years
until its completion in 1988.

Sumitomo Electric started to export electric wires, which

In the two power transmission line construction projects for

Sumitomo Electric Wire & Cable Works, which was founded

not only harsh geographical and weather conditions in theexporting full turnkey projects, which covered exports ofsuch as revolution and war. Still, we managed to connect

construction. This leads to the establishment of foundations

complete the projects in 1987.

which we received orders in Iran in 1975 and 1977, we faced

in 1911. In the postwar period, we expanded our business byconstruction area but also unstable political circumstanceselectric wire products and all services from design tomajor industrial bases of the country and eventually

Business Outline

underlie the industry, during the era of its forerunner,

for the social and economic development of developing
countries and regions all over the world.

With respect to products in the business segments as well,

we have promoted localization of the business by setting up aGroupʼs CSR Activities

number of production bases in the trend of customer demandfor overseas operation and so on. Through these activities, wehave provided technical guidance and have established an
integrated system of production and sales outside Japan.

Full turnkey projects

Global development by business segment

Since our first project in Venezuela in 1963, we have

Beginning with the foundation of our first overseas

serve as an artery that conveys electricity throughout

the establishment of overseas bases in consideration of

manufacturing base in Thailand in 1969, we have promoted

and South America to lay power transmission lines, which

In the parts of the world in which we have established ouras a nerve system that conveys information.

bases, we are committed to job creation and human

In particular, the order we received to construct an urban

telephone network in Nigeria in 1974 was at that time an

unprecedentedly large communication network construction
project, even by worldwide standards, to be placed with a

Ratio of overseas employees (%)(Persons)

300,000

84.0

84.5

84.2

255,133
240,798 240,865 248,330

272,79685.1
283,910

85
84
83
82

200,000
150,000

86

81
80

201,906

202,328

209,094

215,496

232,565

241,492

Sales in Japan and overseas andratio of overseas sales by year
59.5

58.3

(100 million
yen)

58.8

35,00030,00028,22829,331

28,145

59.7

Ratio of overseas sales (%)

58.5

60

55.8

55

30,822 31,780 31,070

50

25,00020,00018,38818,583

17,352

11,60812,434

13,197

13,719

2016

2017

2018

2019 (Fiscal year)

16,46817,461

16,537

11,76011,8702014

2015

15,000100,000

10,00050,0005,000

38,892
2014

Overseas38,53739,236

39,63740,23142,418

2015

2016

2017

2018

2019 (Fiscal year)

Ｉn Japan0Overseas

Ratio of Overseas

Ｉn Japan※Sumitomo Electric and consolidated subsidiaries

Ratio of Overseas※Sumitomo Electric and consolidated subsidiaries

Human Resources0

consolidated companies with more than 240,000 employees.

Supply Chain

250,000

83.8

85.3

operation. We now have a total of 309 overseas

Quality

Number of employees in Japan and overseas andratio of overseas employees by year

resource development while aiming to stabilize the local

Social Contribution

market characteristics and needs for each business segment.

society, and to build communication networks, which serve

Core
Category

undertaken construction works in Asia, Middle East, Africa

Number of Group Employees in the World by Year
2018

2019

2012

2013

2014

2015

2016

Americas15,164

19,712

24,27329,47034,82833,500Europe, Africa
and others

41,23047,73547,64454,24556,477

Southeast Asia

37,53843,00049,86856,40858,278

China

51,887

46,78847,39047,646

Japan

36,95437,49937,14837,715

Total

182,773 194,734 206,323 225,484 240,798 240,865 248,330 121,404 133,729 255,133 129,063 143,733 272,796 135,513 148,397 283,910

Ratio ofoverseas employees

79.8%

80.7%

82.0%

83.3%

Male

Female

Total

Male

Female

Total

Male

FemaleTotal

37,95920,381

18,542

38,923

20,52320,00840,531

21,09922,154

43,25356,27356,79724,09736,44060,537

24,73341,01465,74730,01845,39775,41561,84865,84425,00946,52071,52928,46650,77979,24529,23850,38579,62352,32350,70748,494

19,716

24,79144,50722,85324,18947,042

21,36021,841

43,201

38,892

38,53739,23632,201

7,436

39,63732,488

7,743

40,23133,7988,620

42,418

83.8%

84.0%

84.2%

84.5%

85.3%

Governance

2011

Environmental
Preservation

2017

2010

85.1%

※Sumitomo Electric and consolidated subsidiaries

CSR Report 2020

14

CSR Management

We will enhance
CSR management for
our growth and developmentfrom a longer-term perspective
Miwa Kunii

Executive Officer and General Manager of Public Relations Department

The Sumitomo Spirit, which presents basic value standardsof our initiatives to encourage women to play more active

for the Sumitomo Electric Group, states the importance ofroles was expanded to cover all employees in 2018, this“Mutual Prosperity, Respect for the Public Good,” requiring us

allowed us to change the workplace environment smoothly into focus not only on making money but always conduct

response to the COVID-19 pandemic this year. This is a casebusiness in harmony with public interests. This principle thus

where a measure initiated from the perspective of diversity

shares the same goal with CSR activities, which aim to win

helped us handle company-wide risks.

the trust of stakeholders and make social contributions.

We will continue to promote the establishment of

While human rights issues and environmental problems areworkplaces where diverse human resources, including

now attracting more global attention, our group has toemployees who use the short-time work system andbecome a corporate group with higher sensitivity. I believe

non-Japanese employees, can work comfortably and feelthat a company with high sensitivity listens to various social

rewarded, along with management to ensure that they canneeds actively so that it can identify social challenges andexercise their abilities. Also, while growing through thereﬂect the solutions on its business and management

mutual enhancement of sensitivity, our group aims to becomefoundations. In the long term, such an attitude will enable thea stronger organization that can make a wide range of social

company to grow and develop while winning the public trust.

contributions including those made through our business.

For example, while the teleworking system launched as part

CSR Basic Policy
The Sumitomo Spirit, which gives top priority to social
credibility and corporate ethics, is deeply instilled into theSumitomo Electric Group. With the Sumitomo Spirit, as wellas the Sumitomo Electric Group Corporate Principles, serving
as the basic value standards that guide us, we will enhance
our eﬀorts for CSR management, communication withstakeholders and human rights while setting governance, risk
management and compliance as the foundations. Then,through business activities based on them, we will createsocial values and contribute to a better society andenvironment.
In accordance with the establishment of VISION 2022 inﬁscal 2018, we revised part of the CSR core categories.
With “quality,” “supply chain,” “human resources,”“environmental preservation” and “social contribution” as theﬁve core categories, we will promote business activities.
We will fulﬁll our corporate social responsibility and establish
good relationships with stakeholders with the aim of
becoming a Glorious Excellent Company, i.e., realizing theideal state of the Sumitomo Electric Group.

15 CSR Report 2020

Five CSR
core categories

Basis for Management

CSR Core Categories, Priority Themes and Main Targets
current level to 3.6 trillion yen under VISION 2022. It isplan VISION 2022, we revised the CSR core categories andactually challenging to set and declare quantitative CSR

priority themes as presented below and also set main targets

targets amidst accelerating market changes. Still, with theincluding new key performance indicators (KPIs) for fiscal

recognition that CSR activities are one of the two key

2022 in a way to link them to VISION 2022, instead of thecomponents of our management strategy and are essential toprevious approach focusing on targets set for each fiscal year.

becoming a Glorious Excellent Company, the ideal state of

We aim to further increase our net sales by 20% from theour group, we will enhance our efforts to meet the targets.

Core categories

Main targets (including KPIs for ﬁscal 2022)

Quality

Product quality &product safety

Reduce the index for the number of complaints
by 30% from the FY2017 level

Supply chain

Promotion of
CSR procurement

Promotion of CSR procurement covering
the suppliers that represent 90% of
the value of our domestic procurement
Promotion of appointment and development
of SEG Global Executives

Promotion ofdiversity andoccupational safety

Humanresources

Main related SDGs

Groupʼs CSR Activities

Priority themes

Serious accidents + Accidents resulting in remaining disabilities: 0CoreCategory

Accidents resulting in lost work time + No lost work time accidents+ Accidents causing minor injury: 23 or lessAccident score＊: 80 or lessPrevention of
global warming

Socialcontribution

CSV＊ activities andsocial contribution
activities

Reduce CO2 emissions by 5.0% from the FY2017 level

Social Contribution

Environmental
preservation

Business Outline

In line with the announcement of the mid-term management

Maintain and expand the projects that
help solve social problems
Enhance the activities of
the SEI Group CSR Foundation

Quality

Sumitomo Electric Group CSR Promotion System
The roles of the CSR Committee include:

is chaired by the officer in charge of personnel and general

1. Holding semiannual meetings to review the CSR
activities from a group-wide perspective and give
support and guidance on the future development.

administration and comprised by the managers of the departments incharge of CSR-related areas. The Committee set up CSR Promotion

2. Promoting internal and external information
disclosure and public hearings on CSR.

Office as its secretariat in July 2010 and conducts its activities as across-sectional organization to promote CSR initiatives in the Sumitomo

3. Promoting CSR education programs throughout the
Sumitomo Electric Group, etc.

Electric Group under the system shown in the figure below.

External disclosureManagement Conference: Deciding CSR basic policy

Public hearing function

Report on objectives and results

Instructions and guidanceComplianceRiskmanagement

Compliance &Compliance &Risk Management
Risk Management
Oﬃce
Oﬃce
Information
Legal Dept.
Systems Div.

Public Relations
Dept.
IR Oﬃce,
Accounting Div.

Supply Chain

Quality
Quality Management Div.
Safety & Environment Dept.
Logistics Management Dept.
Information Systems Div.

Human Resources
Development Dept.

Sales Planning & Marketing Div.
R&D Unit
R&D Planning & Administration Div.
Business Units
Departments in charge of planning and administration

Procurement
Div.

Technical
Training Center
Safety &Environment Dept.

SocialContribution

An accident score is calculated by weighting the accidents that have occurred by type.
Class 1: Accidents that can result in a serious accident (forklifts, hoist cranes, rotatingparts, moving parts, etc.); Class 2: Accidents caused by an edged tool, jig or device;
and Class 3: Falling accidents, collides while walking, backache, etc.

Safety &Environment Dept.
Logistics
Management Dept.

Administration
Div.

Plant & Production
Systems Engineering Div.

Target and achievement report

Employees

Glossary ＊Accident score

Environmental
Preservation

Human Resources Div.

Social Infrastructure Sales & Marketing Unit/
Electronics Sales Unit

Public hearing function

Human Resources

Governance

Promotion and education ofbusiness philosophy and visions

Five core categories

Information
disclosure

Environmental
Preservation

Department in charge

Category

CSR Committee : Promoting business philosophy and visions, compiling the results of CSR activities and disclosing information inside and outside the Company

Human Resources

Society (stakeholders)

Supply Chain

In July 2004, Sumitomo Electric established the CSR Committee, which

Support and guidance

Sumitomo Electric Group companies＊CSV: Creating Shared Value

CSV is a concept advocated by Michael E. Porter, an American
academic specialized in corporate competitive strategies, as aframework for the business strategy that aims to balance the economic
activities of companies to gain proﬁts with the creation of social value.

CSR Report 202016

Targets and Actual Results in Fiscal 2019 / Targets for Fiscal 2020
In the Sumitomo Electric Group, the departments in charge of the CSR core categories respectively set various annual targets for theachievement of the main targets mentioned in P16, prepare specific action plans based on the annual targets and work to achieve themautonomously. The table below shows the main targets and results in fiscal 2019 and targets for fiscal 2020 on the main initiatives in core
categories. To meet the targets, we will continue to promote the initiatives based on the PDCA (plan-do-check-act) cycle.
Core
Category

Priority Theme

Targets for FY2019
Reduce the index for the number of complaints by 16% fromthe previous ﬁscal year

Results in FY2019
Decreased by 15% from the previous ﬁscal year

Evalu
ation Page

△

39

○

38
〜
39

Supply chain

Quality

Continue to promote Own Process Quality Assurance Activities (tenth year)

Product Quality& Product Safety

Promotion of
CSR
Procurement① Company-wide development of important measures toprevent major complaints (continued)② Company-wide development of the 3 points control of
quality (continued)③ Expansion of Own Process Quality Assurance Activities onpractical themes (continued)④ Continuance of activities for company-wide dissemination(through the issuance of booklets, holding of exchange
meetings and other initiatives)① Compiled key points for preventing the recurrence of major complaints in“TAZAN-NO-ISHI (quality information-sharing) and published it. Introduced aprevention check sheet across the company to conduct voluntary inspections② Involved 9 divisions in the model activities of “3 points control of quality”.
Reduced the number of complaints by 23% on average in the model
divisions③ Number of activities on practical themes: 319 (an increase of 64 year-on-year)④ Added 6 examples to the booklets to introduce good practices andheld an exchange meeting in AugustContinue the promotion of CSR procurement covering the suppliers
that represent 90% of the value of our domestic procurement● Continuous implementation of the survey based on the CSR
procurement self-assessment sheet● Expansion of the boundary to include Sumitomo RikoCompany Limited, Nissin Electric Co., Ltd.

Conducted the CSR survey covering the suppliers that represent 90% of
the value of our domestic procurement● Implemented the survey based on the CSR procurement self-assessment
sheet (380 companies in FY2019, 1,761 companies in total from
FY2017 to FY2019)● Started the CSR procurement survey in Sumitomo Riko Company Limited
and Nissin Electric Co., Ltd.

○

43
〜
44

Interviewed 37 suppliers in Japan through a meeting or on-site
inspection and asked them to make improvement
Compliance training: Provided to 766 persons in Production Group andCorporate Staﬀ Group and 25 persons in R&D Group● Inspected 26 overseas aﬃliates and gave instructions

○

41
〜
44

Newly appointed 3 SEG Global Executives
As of April 1, 2020, the total number of SEG Global Executives is 43● Promoted measures to develop SEG Global Executives

○

45
〜
46

○

45
〜
46

▽

56

○

55
〜
56

◎

61

○

57
〜
68

Continue to implement the training program that supports
compliance● Extend the application of the procurement guidelines tooverseas aﬃliates●●●

Appointment of new SEG Global Executives
Promotion of measures to develop SEG Global Executives

●

●

●

●

Human resources

Implement priority items
Continuance of promotion of the talent management cycle
Further activation of Regional Executive Conferences andArea Committee activities
Continuance of the executive training program

Promotion ofDiversity andOccupational
Safety

●

●

●

●

●

●

Reduce serious accidents and accidents resulting in remaining
disabilities to zero, and reduce the total number of accidents
resulting in lost work time, no lost work time accidents andaccidents causing minor injury to 50 or lessAccident score: 212 or less

Serious accidents + Accidents resulting in remaining disabilities: 0
Accidents resulting in lost work time + No lost work time accidents +Accidents causing minor injury: 72
Accident score: 307

Safety VISION 2022
① Safety measures in facilities② Development of human resources with high safety awareness③ Fostering safety culture●●●

Action items for FY2019
Activities to be conducted continuously with the participationof all employees● Group-wide structural reinforcement activities
●

●

●

●
●
●

●

●
●

Social contribution

Environmental preservation●

Achieve no increase in CO2 emissions from the FY2017 level●

Prevention of
GlobalWarming●●

CSV Activities
and Social
Contribution
Activities

Achievement of the targets in all items of the Action ECO-22V
campaign
Implementation of environmental audits
In Japan: Legal compliance audits
Overseas: Legal compliance audits (China, ASEAN, the US)
Continue the practical training, in which simulated diagnosis isconducted using the actual products based on hiyari ornear-miss reports and past audits

Continued to conduct Business Unit HR Meetings
Continued to hold the Regional Executive Conference and enhanced
Area Committee activities
Continued to hold the executive training program(with the participation of 3 SEG Global Executives)

Hardware-related measures for rotating or moving parts: Continuous
implementation
Promotion of the separation of vehicles from people
Enhancement of discussion-based training using CG to reproduce disasters
Full-scale implementation of repetitive training
Promotion of the commitment of general managers and higher positions
Dialogue-based inspections: Conducted for all plant managers
Full-scale development of the S-T-O-P accident campaign＊(4 Works and Osaka and Tokyo Head Oﬃces)
Emergency safety management＊ and priority safety management
activities: Continuous implementation
Supervision of construction work: Continuous implementation
Global safety diagnosis: Started the third round
Strengthening of group-wide sharing of best practices: Started theconsideration of TRAP analysis

Reduced CO2 emissions by 13% from the FY2017 level●●●

Out of the 9 items, 8 items achieved the targets; Energy saving(production sites): The performance failed to achieve the target for the
reduction of energy consumption per unit of sales
Implementation of environmental audits
In Japan: Conducted at 3 sites
774 persons participated in managerial post-based training

Maintain and expand the projects that help solve social problems

See the articles from P22○

Enhance the activities of the SEI Group CSR Foundation

Enhance the activities of the SEI Group CSR Foundation○●

Implement the following fund projects① Monetary contributions to university courses: 108 million yen② Subsidies for academic and research programs: 30 million yen③ Supply of scholarships: 40 million yen●

Implement the following fund projects① Monetary contributions to university courses: 108 million yen② Subsidies for academic and research programs: 30.9 million yen③ Supply of scholarships: 37.9 million yen

○

22
〜

36
33
〜

34

35
〜
36

Legend ◎: Target achieved and performance far exceeding the target by more than about 50%; ○: Target achieved; △ : Target not achieved (performance improved from the previous ﬁscal year);▽ : Target not achieved (performance similar to that in the previous ﬁscal year); ▼ : Target not achieved (performance deteriorating from the previous ﬁscal year)

Glossary ＊S-T-O-P Accident Campaign

17 CSR Report 2020

This slogan represents basic rules to be followed while walking. S: Do not take a ｓhort cut
and watch your step; T: Do notｔext orｔalk on the phone while walking; O: Hold on to thehandrails when using stairs; and P: Do not put your hands in your pocket while walking＊Emergency safety management

Activities for emergency safety management are implemented at the operationsites designated as requiring the improvement of health and safety activities.
Measures are taken in a planned manner to improve the structure.

Targets for FY2022

Reduce the index for the number of complaints by 12% from the previous
ﬁscal year

Reduce the index for the number of complaints by 30% from theprevious ﬁscal year

① Company-wide development of important measures to prevent majorcomplaints (continued)② Activities to enhance the prevention of recurrence③ Company-wide development of the 3 points control of quality(continued)④ Expansion of Own Process Quality Assurance Activities on practical themes⑤ Continuance of activities for company-wide dissemination (through theissuance of booklets, holding of exchange meetings and otherinitiatives)

Achievements in FY2019
Reduction of the number of complaints by 15% year-on-year
319 theme-based activities
Addition of 6 examples to the booklets to introduce goodpractices

Promotion of CSR procurement covering the suppliers that
represent 90% of the value of our domestic procurement (Note 1)

Continue to implement the training program that supports compliance
Extend the application of the procurement guidelines to overseas aﬃliates

Sumitomo Riko Company Limited (Note 2): Covered the suppliers
that represent 70% of the value of domestic procurement●●

Appointment of new SEG Global Executives
Promotion of measures to develop SEG Global Executives

Achievements in FY2019
Survey based on the CSR procurement self-assessment sheet
Our group: Covered the suppliers that represent 90% of thevalue of domestic procurement

Nissin Electric Co., Ltd. (Note 2): Covered the suppliers that
represent 48% of the value of domestic procurement

Core
Category●

Groupʼs CSR Activities

Continue the promotion of CSR procurement covering the suppliers that
represent 90% of the value of our domestic procurement● Continuous implementation of the survey based on the CSR
procurement self-assessment sheet● Achievement of CSR procurement covering the suppliers that represent
90% of the value of our domestic procurement including Sumitomo
Riko Company Limited and Nissin Electric Co., Ltd.
●

Related SDGs

Business Outline

Continue to promote Own Process Quality Assurance Activities (eleventh year)

Basis for Management

Targets for FY2020

Promotion of appointment and development of SEG Global
Executives

Social Contribution

Implement priority items
Continuance of promotion of the talent management cycle
Further activation of Regional Executive Conferences andArea Committee activities
Continuance of the executive training program●●●

Action items for FY2020
Activities to be conducted continuously with the participation of all
employees● Group-wide structural reinforcement activities

Achievements in FY2019
Serious accidents + Accidents resulting in remaining
disabilities: 0
Accidents resulting in lost work time + No lost work time
accidents + Accidents causing minor injury: 72
Accident score: 307

Supply Chain

Safety VISION 2022
① Safety measures in facilities: Elimination of the 3 major accidents,
full compliance wtih “Stop, call, wait”② Development of human resources with high safety awareness③ Fostering safety culture: company-wide activities to advance to the“independent” stage

Serious accidents + Accidents resulting in remaining disabilities: 0
Accidents resulting in lost work time + No lost work time accidents+ Accidents causing minor injury: 23 or lessAccident score: 80 or lessQuality

Reduce serious accidents and accidents resulting in remaining disabilities
to zero, and reduce the total number of accidents resulting in lost work
time, no lost work time accidents and accidents causing minor injury to
42 or lessAccident score: 210 or less

●
●

●
●

●

Achievement of the targets in all items of the Action ECO-22V campaign
In Japan: Completion of the second round of legal compliance audits
Overseas: Enhancement of environmental management systems
in aﬃliates

Reduce CO2 emissions by 5.0% from the FY2017 level

Achievements in FY2019
Achieved the targets in all items of the Action ECO-22V
campaign by FY2019● In Japan: Completion of the second round oflegal compliance audits
Overseas: Enhancement of environmental management
systems in aﬃliates● Enhanced systematic environmental education●

Maintain and expand the projects that help solve social problems

Maintain and expand the projects that help solve social problems

Enhance the activities of the SEI Group CSR Foundation

Enhance the activities of the SEI Group CSR Foundation

Implement the following fund projects① Monetary contributions to university courses: 108 million yen② Subsidies for academic and research programs: 30 million yen③ Supply of scholarships: 43.1 million yen

Achievements in FY2019

Governance●

Environmental
Preservation

Raising the awareness of the social responsibility that companies should
fulﬁll, in systematic environmental education

Human Resources

Reduced CO2 emissions by 3.0% from the FY2017 level① Monetary contributions to university courses: 108 million yen② Subsidies for academic and research programs: 30.9 million yen③ Supply of scholarships: 37.9 million yen(Note 1) Domestic procurement by Sumitomo Electric and its domestic aﬃliates (excluding SUMITOMO DENSETSU CO., LTD. and TECHNO ASSOCIE Co., Ltd.) is covered.
(Note 2) For Sumitomo Riko Company Limited and Nissin Electric Co., Ltd., the survey based on the CSR procurement self-assessment sheet was started in ﬁscal 2019
and the coverage for the ﬁrst ﬁscal year was calculated based on the procurement value in each of the companies.

＊TRAP analysis

TRAP is an abbreviation of Trap Avoiding Program (a phrase coined by Sumitomo Electric). TRAP analysis aims to prevent the occurrence andrecurrence of work-related accidents based on the theory of failure studies, “I thought that I was taking the right action but it caused an
unfavorable result against my will (due to an unexpected trap). I will identify the trap and consider it for prevention in the future.”

CSR Report 2020

18

CSR Management of Listed Companies in the Group
Sumitomo Riko Company Limited

Web

https://www.sumitomoriko.co.jp/english/csr/portalof global business foundations” and are committed to thefour fields of “Automotive (Mobility),” “Infrastructure andHousing Environment,” “Electronics” and “Healthcare,” as wellas the businesses for the next generation.
To enhance public value, we have set the “Sumitomo RikoGroup Corporate Action Charter,” “respect for human rights”
and “compliance” as the fundamental principles and arecommitted to materiality with focus on the four priority
themes of safety, environment, quality and social
contribution. For example, while the reduction of CO2
emissions by 8% (emission intensity) from the FY2017 level is
set as one of the mid-term environmental objectives 2022V
as part of our environmental activities, we reduced CO2
emissions by 2.0% in fiscal 2018. In our commitment tosafety, we take measures to meet the target of eliminating
occupational accidents including the engagement of theSumitomo Riko issued the Sumitomo Riko Group 2022 Visionpresident, managers and supervisors in safety dialogues and(2022V) in May 2018 to promote value-creating CSR

patrols, the promotion of safety improvement through theactivities that aim to enhance corporate value (financial

enhancement of global safety standards and safety audits.

objectives) and public value (non-financial objectives)

With 2022V as the milestone to be reached, Sumitomo Riko

simultaneously.

continuously aims to become a Global Excellent

To increase corporate value, we have formulated three

Manufacturing Company, which we define as a corporation

business strategies of “Creation of new businesses and newthat contributes to safety, comfort and the environment forcustomers,” “MONOZUKURI innovation” and “Strengthening

people, society and the Earth.

Nissin Electric Co., Ltd.

Web

https://nissin.jp/e/company/report.html

extension the development of the industry. Throughout theperiod, we have constantly upheld the “Five Trusts” withstakeholders embodied in our Principles of Activities whichstate “Integrity, Trust and Long-term Relationships.”
Based on the Basic CSR Promotion Policy, our group is committed
to initiatives to reduce environmental burdens and conserve
the environment with focus on coexisting with the environment,
as well as fair and transparent corporate management
grounded in compliance with laws and social norms at its core,
while striving to further enhance the Five Trusts.
We believe that it is necessary for us to focus more on solvingsocial challenges through our business activities, andannounced that we would aim to obtain certification from the
Science Based Targets Initiative, an international environmentalorganization, for our greenhouse gas reduction targets for fiscal
2030. We plan to set the global emission reduction target by2021 and receive certification.
In addition, we have been implemented community-basedsocial contribution activities on an ongoing basis, while striving
As of July 31, 2020

The Nissin Electric Group was founded in 1910 by Nobu
Tomizawa with the mission to contribute to the newdevelopment of the power system equipment industry.
Since then, we have continued with our efforts to assist thedevelopment and expansion of power infrastructure, and as an

19 CSR Report 2020

to improve safety and quality and disclosing information
appropriately.
The Nissin Electric Group will continue to contribute tocreating a vibrant society in harmony with the environment
through Corporate Activities that support the foundations ofsociety and industry.

Web

Basis for Management

SUMITOMO DENSETSU CO., LTD.

https://www.sem.co.jp/company/csr

mega-solar, wind power, biomass and micro hydropower, as
well as IoT and other technologies, to address technologicalchanges.

Business Outline

In addition to contributions through business activities,
we also perform CSR activities with an emphasis on the
improvement of the work environment for employees,
including the commitment to safety, quality and compliance,
to build better relationships with all stakeholders.
Among them, safety and quality are the issues of top priority,
and we make efforts to ensure safe and quality construction

Groupʼs CSR Activities

work through the cooperation of on-site staff with theheadquarters. Since September 2019, we have developed acompany-wide safety and quality improvement campaign as
the final program for Vision 19. One of the achievements inthe campaign is the clarification of the rules we must observe

Construction work of a mega-solar system

to ensure safety in work, which has been reorganized as
basic rules.
We are also working actively to assist employees in theexample, setting up a health management office as acomponent of the infrastructure. In our medium-term

company-wide organization to promote coordinated healthmanagement plan, Vision 19, which was initiated in 2016,

improvement activities.

we have worked to enhance our response to new energy

We will continue to contribute to the creation of amarkets and also combined a wide range of technologies in

comfortable environment that supports affluent society

our group for technical innovations in new markets such as

through business and CSR activities.

Web

http://www.technoassocie.co.jp/english/csr/

Quality

TECHNO ASSOCIE Co., Ltd.

Social Contribution

management and improvement of their health by, forconstruction work with a focus on electricity, a key

CoreCategory

SUMITOMO DENSETSU engages in various fields ofSupply Chain
Human Resources

As of July 31, 2020

results of our environmental conservation activities.

suppliers through the business to supply a wide variety offullest, we also promote diversity and inclusion and are

to providing solutions to challenges faced by customers andparts, which are production goods, to customers in various
fields including electronics, automotive and housing.

Our CSR activities have particularly focused on quality
assurance and environmental conservation. In theenvironmental field, for example, we set targets on“reduction of CO2 emissions” and “promotion of waste

recycling” every fiscal year and perform self-assessment

based on the targets and actual performance to improve theactively committed to respecting human rights andoccupational safety and health management.

Moreover, we work for the development of a corporate

governance system, compliance and risk management tostrengthen the foundation of our business operation.

We will continue to adopt an attitude of gratitude, which isGovernance“expansion of the sales of environmentally friendly products,”

To ensure that all employees can display their abilities to theEnvironmental
Preservation

As an engineering company, Techno Associate is committed

mentioned in our business policy, to all stakeholders who
support our business activities, and act in a manner that
embodies the attitude.

CSR Report 2020

20

Relationships with Stakeholders
Outline of the stakeholder

Sumitomo Electric Group

CentralandLocal Governments

For us, central and local governments
around the world are not only regulators
but also customers of our products andservices.

GlobalEnvironment

We promote environmental management
based on our policy that places environmental
conservation activities as a top businesspriority.

Customers

We provide customers across the world witha wide range of products and services in ﬁve
categories: Automotive; Infocommunications;Electronics; Environment & Energy; andIndustrial Materials.

Local Communities
andNPOs/NGOs

The Sumitomo Electric Group conducts
business activities through 416 companies
located in approx. 40 countries/areas allover the world (as of March 31, 2020).

Employees

The Sumitomo Electric Group has approx.
284,000 employees consisting of approx.
42,000 employees in Japan and approx.
242,000 employees in other countries.
More than 80% of the Group employees thus
work outside Japan (as of March 31, 2020).

Shareholders
andInvestors

The total number of our shareholders is approx. 61,000,
and the number of shares issued and outstanding isabout 800 million. By type of shareholders, ﬁnancial
institutions and foreign holders own 44.0% and 34.9%of the shares respectively, followed by Japaneseindividuals and others (11.4%) (as of March 31, 2020).

Suppliers

The Partnersʼ Meeting held in ﬁscal 2019
gathered approx. 93 of our main suppliers.
(FY2019)

Main responsibilities of the Sumitomo Electric Group
Compliance with laws, regulations,administrative guidance, etc.
● Tax payments● Cooperation for government policies tosolve public problems●

Reduction of greenhouse gas emissions
Promotion of energy saving and recycling● Reduction of the amount of waste, reduction of
the release of harmful chemical substances

Comply with the relevant laws and regulations
Environmental conservation activities inaccordance with the PDCA cycle● Stakeholder dialogue

●

●

●

●

Supply of socially useful andsafe products and services
Improvement of customer satisfaction
on all aspects including delivery time, etc.
● Provision of accurate andappropriate information on products
●

●
●

●

●

Respect for culture and custom,
contribution to development● Prevention of accidents and disasters,
environmental conservation● Cooperation and coordination for the solutionof environmental and other problems●

Respect for human rights,
personality and individuality
Development, use and evaluation of human resources● Creation of a work environment where all
employees can demonstrate their capabilities● Contribution to occupational safety and health●●

Maintenance and improvementof the corporate value
Proper return of the proﬁts (as dividends)● Timely and proper disclosureof corporate information●

Communication with
Shareholders and Investors
Sumitomo Electric believes that an important goal of its
investor relations is to notify market participants of accurate
information in a timely and fair manner, so as to obtainappropriate evaluation of our corporate value in the capital
market.
The Company works to enhance communication withinstitutional investors and analysts at such occasions as
briefings on financial results and interviews. For generalshareholders and investors, we post a wide range of
information on our websites, including financial information,press releases and materials distributed in financial result
briefings as well as relevant video images.
We will continuously promote fair and prompt information
disclosure and further improvement of the content.

●●

Surveys to create a lively work environment
In-house magazines, Global Magazines
Intranet, Presidentʼs blog
● Management council meetings fordiscussion between labor and management● Informal meetings between executives and employees
●
●
●

●
●

Fair trade
Support and cooperation for
the achievement of CSR procurement

The Sumitomo Electric Group Charter of Corporate Behavior
stipulates that we will aim to disclose appropriate corporate
information to our stakeholders to promote communication
with society. In accordance with the charter, we haveestablished a system in which information on occurredmaterial facts and decisions is collected and confirmed bypublic relations sections in cooperation with relevant
divisions so as to promote timely and accurate information
disclosure. In addition, Sumitomo Electric established the
Public Relations Committee in 2006 as a cross-sectionalorganization to enhance the information disclosure system.
The committee engages in activities such as development ofrules on corporate information disclosure, related educationand knowledge dissemination within the Group and planningof measures to enhance the corporate brand value.

Participation in events, support of traditional performing arts
Factory tours, opening of facilities, joint hosting of festivals
Employeesʼ contribution to local communities● Communication through cooperation and support● Stakeholder dialogue
●

●

●

●

Communication through daily operations
Newsletters, e-mail delivery, websites
Information exchange at exhibitions etc.

General meetings of shareholders
Financial result brieﬁngs
Reception of investors and interviewers● Annual reports● Investor relations website●

Disclosure of Corporate Information

21 CSR Report 2020

Main means of communications
Communications through economic
organizations and trade associations● Notiﬁcations, response to surveys and questionnaires● Consultation with competent authorities,
public comments

●

●
●
●

Communication through daily procurement activities
Partnersʼ meetings
Communication through the supplier survey sheet andother channels

Efforts to Disseminate Information
As in the previous fiscal years, Sumitomo Electric actively
disseminated information on a wide range of activities of theGroup through various media such as press releases,
interviews and websites to help our stakeholders enhance
understanding of the Group. When we announced the
mid-term management plan VISION 2022 in May 2018, we
renewed our tagline to adopt “Connect with Innovation.” We
now promote the application of it to various media including
posters, signboards and business cards. Meanwhile, we also
reviewed the visual identity (VI) that aims to give consistency
to designs, logos, colors and fonts throughout the Sumitomo
Electric Group and establish a common impression andworldview. We are continuously working to disseminate the
new VI by applying it to our company profile brochure andvideo, various publications and promotional materials.
Moreover, we actively communicate information on theactivities of our track and field team and our support to sports
events such as Lake Biwa Mainichi Marathon via websites,
SNSs, various types of advertisements and other media.
Through these initiatives, we further increase a sense of unity
within the Group while giving support to sports promotion.
Results of Information Transmission through SEIʼs Main Media by Year
（Number）
140
120
100
80

79

60

67

78

105

131
89

40
20
0

2017

2018

2019

Press release

2017

2018

Interview

2019

22

23

27

2017

2018

2019 (Fiscal

Presidentʼs blog

year)

CSR Core Category

Social Contribution
Basis for Management

CSR Priority ThemeCSV Activities andSocial Contribution Activities

their business activities. In 2015, the Sustainable
Development Goals (SDGs) were adopted at a UN summit.
An international framework where private companies, as wellas national governments and NGOs, can assist in solving the
problems has been developed and many companies are now
engaged in the activities.

Business Outline

To meet such social demand and fulfill our corporate social

CSV Activities

responsibility, the Sumitomo Electric Group added “CSV(Creating Shared Value) activities” as a theme of “social
contribution,” one of the CSR core categories that were

Basic Approach

reviewed in fiscal 2018, along with the conventional theme of“Contribution at business locations and through thefoundation” to make them two pillars for making social
contribution.

The business activities of the Sumitomo Electric Group are

Relevance to the SDGs

very wide-ranging in terms of technology, market andbusiness, involving various stakeholders. Our group has
always supplied useful products, technologies and services tosociety through business activities and promoted CSV
activities based on our CSR basic policy. We will contributeto a better society and environment through a proactive andcontinuous supply of new value to society while always being
conscious of our role as a member of society.

The picture below illustrates the values offered by the
Sumitomo Electric Group for the development of a societythat is projected around the year 2030 in VISION 2022.
Widespread use of IoT technologies, the introduction ofsmart energy networks and connection of electrified vehicles
and various other things will generate new services.
These changes will also allow people to live a safe,
prosperous and comfortable life with a sense of security in a

While there are a host of global problems including global
warming today, companies are required to develop businesssustainable society. In addition, a wide range of measures aretaken to solve social problems on a global scale andcompanies are expected to help solve global issues throughwe seek in such a future world, as well as nine fields for our
initiatives to offer values for the society. Those values weoffer are also in line with the SDGs.
While some of the initiatives are expected to be fullycommercialized and contribute to the performance of theSumitomo Electric Group only after fiscal 2022, we plan topromote them to respond to social changes proactively

Qualityactivities that consider the environment and help create aestimate. We have specified three forms of the ideal society

Social Contribution

Re-definition of the Priority Theme“Social Contribution”

sustainable manner around the world, according to ourCoreCategoryautonomous commitment to solving social challenges andGroupʼs CSR Activities

In addition to monetary donations and charitable
activities, we will continuously be committed tothe creation of shared value (CSV) throughbusiness activities.

during the period of this mid-term management plan.

Supply Chain

Relevance of the business of the Sumitomo Electric Group to the SDGs

Human Resources

Encouraging useof renewable
Promoting recycling technologies
energy with smart
and pursuing materials
energy systems
development less dependent
on scarce resources,
driving resource-friendly
practices

Environmental
Preservation

Development of
eco-friendly productsthat limit CO2
emissions

Developing solutions
that connect cars, houses,

Car-to-car andCreating a secure urban
car-to-road
environment withconnectivity for a safer
enhanced
driverless society
infrastructure durability

Increasing
telecommunications
security for safety
and privacy

Providing technology people, and communities,
that connects automobiles
Achieving faster data
enabling effective
transmission through advanced to society, liberatingenergy-sharing
transportation andinfocommunication
increasing comfort
technologies underpinningan IoT-based society

Governance
CSR Report 2020

22

Main Business Groups That Support CSV Activities
Since its foundation as a manufacturer of copper wires and cables, Sumitomo Electric Group has continuously grown throughthe development of related materials and manufacturing technologies and celebrated its 120th anniversary in 2017.
Based on the Sumitomo Spirit, we will continue to create a large number of technologies and products that help solve social
challenges and contribute to a better society and environment.

Energy Infrastructure
Redox Flow Battery

Concentrator Photovoltaic (CPV) System

Power Line Communication (PLC)

High-temperature
superconducting (HTS)Information andCommunication Infrastructure
10G-EPON system

Public Infrastructure
POREFLON™ membrane-separation
wastewater treatment module

Air springs for vehicles

23 CSR Report 2020

DC XLPE insulation cable

Ultra-low-loss optical fiber（Z-PLUS Fiber™）
Basis for Management
Business Outline

Automotive/Transportation
High-strength aluminum wiring harness

Tab-Lead for on-vehicle batteriesGroupʼs CSR Activities

High durability prestressing strands

Sintered parts

Core
Category

CELMET ™(porous metal)

Social Contribution
QualityMulticore optical fiber cables

Supply Chain

GaN transistors forcellular phone base stations

Human Resources
Environmental
Preservation

Traffic control systems
Governance
CSR Report 2020

24

VISION 2022 Mid-term Management Plan

Research and Development for
the Next Generation

R&D Group

To meet new needs on social and environmental aspects, including SDGs, our R&D
Group will work for various innovations such as drastic changes in automobiles,
the widespread use of renewable energy and the use of big data.
We will pursue the growth of our businesses in Mobility, Energy and Communications
as well as the products and services that underpin them while taking advantage ofthe diversity of our businesses and technologies to create innovations and thereby
contribute to the creation of a better society.
By combining the core technologies we have developed with advanced IoT, AI,
computational science, analysis techniques and security, we will promote thedevelopment of new products and new businesses.
Furthermore, looking at a future society, we will make efforts to develop innovativetechnologies that are expected to bring major social reforms such as carbon wires,hydrogen energy and innovative materials.

Water
treatment

Motor
parts

Mobility

Automotive

Nextgeneration
harness

Carbonelectric
wire

Batteryrelatedparts

Highstrength
sinteredparts

Multimaterials

Industrial
Materials

New toolmaterials

Magnesium
alloys

Infocommunications

Fine-pitch
FPC

Opticaldevices

Highdensity
opticalwiringChallenge to
Advanced Technology

Enhancement ofCore Technology
Lifescience

Infocommunications

Number of Patents Year by Year
(Number of patents)

18,00016,00014,00012,000165

10,00015,954 15,601 16,698
8,129

17,947
8,909

7,030

7,067

7,611

7,449

7,621

8,014

8,343

8,152

8,569

9,038

2014

2015

2016

2017

2018

2019 (Fiscal year)

6,000¥125.4billionin total

14,651 15,081

8,000

FY2019

4,000
2,000

785

0

Automotive

In other countries●●●

25 CSR Report 2020

Superconductivity

Communications

84

186

New
technology
for system
maintenance

Opticalfiber

Industrial Materials

35

Ultrahighvoltage
cablesHydrogentechnology

High-speed
networkR&D cost by business segment

Electronics

SiC power
devices

Energymanagement

Electronics

Cableconnecting
parts

Automotive
wireless
devices

Traffic
info
serviceElectronic
devices

Environment &EnergyOverheadtransmission
lines

Central
GW

Environment&
EnergyEnergyPowertransmission/storageEVcharging

New-function
sensor/deviceInnovation
Anticipating ChangeHighvoltageDCcontrol

In JapanFigure as of December 31 of each year
The ﬁgures in Japan are the total number of patents, utility models and designs.
The ﬁgures in other countries are the sum of the total number of patents,
utility models and designs in each country.

Charging connector for EVs

Basis for Management

Automotive

Business Outline

Wiring harness

Groupʼs CSR Activities

Anti-vibration rubber
products

Core
Category

We will tirelessly pursue the developmentof “connectivity” technologies to support
further evolution of electric cars●

Development of electriﬁed
vehicles and promotion of theirwidespread use●

Bus Bar Module, a peripheralproduct for high-voltage batteries,
and wiring technology

Bus Bar Module helps downsize battery modules

Human Resources

Prevention of global warming● Reduction of exhaust gas emissions●

New products and technologies contributing
to the solution of the challenges

Supply Chain

Social expectations

QualitySocial challenges

Social Contribution

The recent tightening of regulations on fuel efficiency and exhaust gas emissions, as well as zero emission
vehicle (ZEV) regulations, has accelerated the widespread use of electrified vehicles such as electric vehicles(EV), hybrid electric vehicles (HEV) and plug-in hybrid vehicles (PHV). Their high-voltage driving batteries require
higher voltage and larger current in addition to space saving. Wiring networks, which Sumitomo Electric handles,
Tetsuji Tanaka
serve as bloodstream and nerves in vehicles and it is essential to develop technologies and products that meet theGeneral Manager (left)
requirements to play such roles.
Shinichi Takase
Assistant General Manager
For example, the improvement of the components and packaging techniques is required to meet the demand for(right)space saving while the advancement of thermal control technology is a challenge in achieving a larger current. The
Electrical Connectiong
Sumitomo Electric Group has already begun to deliver bus bar modules, as well as products to be mounted in
Component Development
Promotion Department
high-voltage batteries to contain functional parts such as relays, resistors, fuses and current sensors for the supply,
CAS-EV Development
cutoff, distribution, etc. of high-voltage power sources, to major car manufacturers. We also have technologies for
Promotion Division
combination with space-saving wiring materials using flexible printed circuits to meet the requirements.
Our technologies will help increase the capacity of battery packs for electrified vehicles and also contribute to the extension of thedriving distance and the expansion of the in-car space. While ensuring the absolute safety of vehicles, we will continue to play a partin the dissemination of electrified vehicles to reduce emissions of CO2 and other air pollutants.

Batteries for driving motors can be considered as the heart of electrified vehicles. Bus Bar
Environmental
Preservation

Module of the Sumitomo Electric Group helps downsize the battery modules used for theelectric connection between electrodes.
This product functions to electrically connect electrodes of laminated batteries in series
and parallel, and transmit the voltage of batteries to the control unit. The bus bar moduleof our Group initially adopted a style to connect small plastic casings to address various
designs of battery packs developed by customers. However, further downsizing of theGovernancebattery module and ensuring of a high level of safety became challenges as a result of
increases in the capacity of battery packs and the number of the cells mounted to ensure
driving distance. To help solve the challenges, our Group has developed a product withfuses to protect it by using flexible printed circuits, which are thin wiring.

CSR Report 202026

Broadband network service products

Infocommunications

Multicore optical ﬁber cables

Optical transceivers

We will continue to do our best to deliver stable
and comfortable communication networks topeople around the world
With the start of the widespread use of 5G, communication networks in the world are making
major progress. It is, however, regrettable that there are still big differences in the development ofcommunication networks between countries and regions, and the networks are not available forsome people in the world. In addition, the development of networks increases the amount of
information and it is now a major challenge to expand internet traffic capacity. In consideration ofsuch circumstances, it is expected that the demand for stable and comfortable optical fiber
networks will continue to grow further. Optical fiber networks cannot be established without fusion
splicers that join optical fibers. The Sumitomo Electric Group has developed fusion splicers with highRyuichiro Sato

Mechanical Design Engineering Group
Precision Mechatronics Department
Sumitomo Electric Optifrontier Co., Ltd.

precision and high durability and introduced them into the Japanese and global markets.
The digital divide widens the gap between the rich and the poor. To solve it, we will actively work for the dissemination of
products in emerging markets where the Internet communication network has not been developed. In the future, we would like tocontribute to the construction of a society where everyone can equally access information and have a comfortable life.

Social challenges●

Widened gap between the richand the poor due to the digital
divideSocial expectations●

Universal availability of Internet
access for all people at areasonable cost

New products and technologies contributing
to the solution of the challenges●

Optical ﬁber fusion splicers andoptical ﬁber network construction
work management services

Fusion splicer actively used in all types of jointing for optical fiber networks
The Sumitomo Electric Group develops and supplies a wide range of fusion splicers that meetvarious demands of customers engaged in the establishment and expansion of global optical
networks. Overseas, in particular, the TYPE-72C direct core monitoring fusion splicer has earneda favorable reputation because of the high resistance to shock and splash-proof and dust-proof
performance as well as the ability to join optical fiber cores with a high degree of accuracy inthe construction of trunk line systems. In Japan, on the other hand, demand for a small-sizedfusion splicer TYPE-201e, which is as light as about 800 grams and can be held by one hand, hasgrown due to large demand for fusion for Fiber-to-the-home installation work.
As a unique service of our Group, we have launched SumiCloud™, a cloud service where theinformation on fusion splicing stored in fusion splicers is accumulated in a server via
smartphones and integrated. This service allows the manager to check the status of fusion
splicing promptly and control the work remotely. Our Group will continue to support theconstruction of optical communication networks around the world with our technologies andproducts to connect, operate and use optical fibers.

27 CSR Report 2020

Left: TYPE-72C / right: TYPE-201e

SUMI-CARD TM

Basis for Management

Electronics

Business Outline

SUMITUBE TM

Groupʼs CSR Activities

Flexible printed circuits
(FPC)

Core
Category“When it comes to high-speed transmission,
Sumitomo Electric is the best.” -- We will continue
to make eﬀorts to receive such words from customers●

Development and widespread use oftransmission technologies to addressincreases in the amount of information●

Thunderbolt 3 cable, whichenables high-speed transmission

Thunderbolt 3 cable, a high-speed transmission cable suitable for 4K video signals

Human Resources

Advancement of information
technology

New products and technologies contributing
to the solution of the challenges

Supply Chain●

Social expectations

QualitySocial challenges

Social Contribution

Sumitomo (SEI) Electronic Wire, Inc., a Sumitomo Electric Group company, developed cables withconnectors to be used in automotive use, consumer use and the medical area while meeting various
customer needs. In 2010, we started to collaborate on the development of high-speed transmission cables
with the US company Intel Corp. in response to the market demand for high-speed and high-capacity
Wataru Sakuraitransmission. Since then, we have brought Thunderbolt cable products to the market.
Assistant General Manager (left)
In 2015, our cable technology and high-speed transmission technology were combined to develop a
Masaki Suzuki
Thunderbolt 3 cable compatible with the latest Thunderbolt standard. This is a high-end product that
Assistant Manager,
CBA Technology Section (right)
minimizes transmission loss of high-frequency signals and approximately doubles the transmission speed in
CBA Departmentcomparison with existing general-purpose USB Type-C cables. Our Group is one of the worldʼs largest
Sumitomo (SEI) Electronic Wire, Inc.,
suppliers of this product.
While we faced high technical demand initially after the launch of the project to develop the Thunderbolt 3 cable because thestandard was new, the challenging efforts to tackle the issues together with the industry leader also provided a series of invaluable
experiences to us. As this product has been developed to be used directly by consumers, we can witness the scenes where itchanges peopleʼs lives, which makes us feel excited as the developers. We will continuously endeavor to make people think of
Sumitomo Electric when it comes to high-speed transmission, while hoping to use the technologies cultivated through thedevelopment in other fields as well.

Thunderbolt 3, the latest version of Thunderbolt standards, is a high-speed andEnvironmental
Preservation

high-capacity external interface standard that enables bi-directional 40 Gbps
transmission using a USB Type-C connector. A Thunderbolt 3 cable approximately
doubles the transmission speed in comparison with existing general-purpose USB
Type-C cables to enable 4K video signals to be transmitted smoothly. It also hashigh flexibility and softness due to the adoption of a coaxial cable, receiving
favorable reviews from customers. In the development process, we aimed toGovernancecombine the technology of the Sumitomo Electric Group to produce coaxial
cables featuring high flexibility and bending resistance with the high-speedtransmission technology. The product has the worldʼs largest market share among
those for the standard and is also commercially available under our brand.

CSR Report 2020

28

Aluminum wire rods
Copper wire rods

Environment& Energy
Magnet wires

High-voltage optical ﬁber
composite submarine cables

We will combine the collective strength of the Groupto increase our presence in the ﬁeld of connecting
renewable energy
In recent years, social demand for renewable energy has grown rapidly and the development oflarge-scale systems with hundreds of megawatts of power has been in progress. As a result, moreadvanced technologies are now required to enable electric power transmission with higher capacity overa longer distance. It is accordingly essential for us to conduct the integrated design and construction of thewhole system with high technological strength, instead of simply combining individual products, as a solution
for transmitting and transforming electricity.
Shuuji Mayama
Sumitomo Electric designs power transmission and transformation systems by combining its high technical
Chief Engineer
capabilities as a leading electric wire manufacturer in Japan with the power receiving and transforming equipment
Power Cable Projectof Nissin Electric and the construction technology of SUMITOMO DENSETSU, which are both our Group companies.
Engineering Division
We are making great contributions to the expansion of renewable energy through the reduction of costs and risks.
For further dissemination of renewable energy, it is also necessary to solve the problem of receiving capacity restriction in the utility grid.
We will support the widespread use of renewable energy through the improvement of the operation rate of power transmission lines bymonitoring their temperature, which is called dynamic rating, and long-distance submarine power transmission based on our worldʼsleading DC cable technology, as well as large redox flow batteries and energy management systems.
Wind power generation sites using our power transmission and transformation solutions are starting operation one after another. While
our technologies and products are usually in out-of-sight places such as underground, sea bottoms and mountainous areas, we can realizethat we are fulfilling our social mission of contributing to the achievement of a sustainable society through this rewarding business.

Social challenges●

Prevention of global warming

Social expectations●

Widespread use of renewableenergyNew products and technologies contributing
to the solution of the challenges●

Total solutions for transmission
and transformation of renewableenergyJapanʼs largest wind farm “Wind Farm Tsugaru” started operation
Established in Tsugaru City, Aomori Prefecture, Wind Farm Tsugaru is a large-scale onshore windfarm with a power generation capacity of 121,600 kW and 38 wind-turbines. The capacity isequivalent to the power supplied to about 90,000 general households and it is expected thatthe wind farm has an effect of reducing CO2 emissions by approximately 180,000 tons in a year.
The Sumitomo Electric Group has promoted the project jointly with Kajima Corporation, which isthe business proprietor, since 2017 while being collectively in charge of the design, production
and installation of electric facilities including underground transmission lines and substationequipment. The construction work of 41 km of collection cables from wind-turbines, 33 km of
power transmission lines, three substation facilities and a monitoring control system wascompleted in as short as about two years to successfully start the operation.
Ahead of many wind power generation projects scheduled in the future, Wind Farm Tsugaru
began to operate on April 1, 2020.
Also, we are now promoting the support of design and preparing for construction in manylarge-scale wind power projects, including offshore wind farms that are expected to grow in the
future. Our Group will be committed to total solutions for renewable energy.

29 CSR Report 2020

Photo courtesy ofGreen Power Investment Corporation

Prestressed steels

Basis for Management

Industrial
Materials

Business Outline

Sintered parts

Groupʼs CSR Activities

Cutting tools

Core
Category

We will continue to underpin the advancement ofenvironmental technologies through the research anddevelopment of cutting-edge materials for products
engine room (including the engine and transmission) accounts for roughly one-third to one-fourthof the total weight of an automobile, progress in meeting those requirements will reduce the weightof vehicles, which can make great contributions to environmental conservation such as energy saving
and the reduction of exhaust gas emissions.
The steel wires for valve springs produced by us in the Industrial Materials Group of the Sumitomo
performance directly results in space saving of engines. While closely recognizing the needs to further

Precision Wire
Engineering Department
Special Steel Wire Division

enhance the performance including high fatigue strength, toughness and thermal resistance based on the

Quality

Electric Group are used mainly in transmissions, engines and other key parts. The improvement of their

Hiromu IzumidaSocial Contribution

Weight saving of cars and downsizing of engines have been required in recent years. As thecomments from customers received via sales staff, as well as the demand directly listened to from customers during the visits ofour technical staff, we work for the research and development of products that satisfy their requests. In addition to theimprovement of performance in material composition, it is now essential to improve heat treatment, wire drawing andmanufacturing techniques with the same material composition. Drawing on our expertise, we will continue to promote theSocial expectations

Prevention of global warming● Reduction of exhaust gas emissions●●

Development of high fuel-eﬃciency
vehicles and promotion of theirwidespread use

New products and technologies contributing
to the solution of the challenges●

Higher fatigue strength andlighter weight of steel wires forvalve springs

Steel wires for valve springs, for which we have the largest share in Japan

Human Resources

Social challenges

Supply Chaindevelopment of materials that can meet the expectations of customers.

Valve springs are parts to support the mechanism that actuates the intake andheat resistance (sag resistance). Steel wires for valve springs supplied by the
Sumitomo Electric Group feature overwhelmingly higher fatigue strength,
toughness and thermal resistance than other steel materials.
Our Group has a history of designing various alloys by trial and error toAutomatictransmission

Impact-absorbing spring(torsional damper spring)

Environmental
Preservation

exhaust valves of automobile engines and need to have excellent durability andconstantly improve their performance and now has the largest share for steel
Governancewires for valve springs in Japan. We will continue to develop material designs
that combine alloy design, wire drawing and heat treatment techniques topropose a further improvement of performance and cost reduction. Then, with an
aim to reduce the environmental impact of automobiles, we will pursue thepotential of steel wires for valve springs and other industrial materials from theperspective of environmental conservation.

EngineValve spring* Sample images

CSR Report 2020

30

POREFLON™ water treatment membrane module

New Business
Development
Lithium-ion power
storage system

Magnesium alloy

With the technical strength and product supply abilities
we have developed, we will continue to lead the ﬁeldof superconducting products
The practical use of superconducting technology has been in progress, especially in the medical
field. In medical MRI systems, which require large magnetic space, superconducting magnets havebeen widely and practically used for about 50 years. The magnets are now applied to accelerators for
proton therapy, as well as nuclear magnetic resonators (NMR), which are very effective in the analysis oforganic compounds, and expected to make contributions such as the support of the analysis of the
Takato Masuda
proteins that can cause Alzheimerʼs disease.
Ｇroup Manager
While the low-temperature superconducting wires developed around 1960 required expensive liquid
Marketing Grouphelium, high-temperature superconducting wires that can be achieved by cooling with cheap liquid nitrogen
Superconductivity Technology
Division,
are used nowadays. As an example, many countries in the world have already advanced into the phase to
Planning & Administration
conduct the demonstration experiments of long-length superconducting power cables. The Sumitomo Electric
Department
Group succeeded in mass production of bismuth-based high-temperature superconducting wires in 2005 and thetotal length of the wires that have been shipped by now is equivalent to the distancefrom San Francisco to Chicago 2,989km. In
addition to the products featuring excellent performance and quality that enable a high current to be carried stably, the strength of
our Group is its ability to supply a vast amount of long-length wires. I continuously hope that the high-temperature superconducting
products of our Group can make great contributions to further dissemination of superconductivity.

Social challenges●

Creation of new value
through the advancementof science and technology

Social expectations●

Energy saving and spacesaving using
superconductivity

New products and technologies contributing
to the solution of the challenges●●

High-temperature superconducting wire DI-BSCCO™
Superconducting wire manufacturing technology

DI-BSCCO™, high-temperature superconducting wire for actual use with the worldʼs best performance and quality
It is now the era of high-temperature superconductivity, which creates sufficient
superconducting phenomena at the temperature of -190℃. In the field ofhigh-temperature superconducting wires that can be used at the temperatureof liquid nitrogen, we offer the DI-BSCCO™ superconducting wire, which is aninnovative bismuth-based superconducting wire using pressurized sintering andother processes. With a good balance between world-class performance,
quality and price, this high-temperature superconducting wire is employed inindustrial products, as well as projects to develop superconducting application,
all over the world. The practical superconducting wire manufactured with ourunique technology and pressurized sintering process of a practical scale isamong the best in the world with stable quality and also called a 1G (first
grade) superconducting wire.

31 CSR Report 2020

Social Contribution Activities
Basic Policies on Social Contributions
Sumitomo Electric stipulated the Sumitomo Electric Group Basic
Policies on Social Contributions, which are based on the
Sumitomo Spirit and the Sumitomo Electric Group Corporate
Principles, on the occasion of the 110th anniversary of its
founding in 2007.

policy of “supporting the local community and growing
together with the people as a member of thecommunity.” Osaka Works has actively had an
exchange with local people for many years through its
activities such as Rose Festa and Sumitomo Electric● Globally promote eﬀorts toward the development of human resources,

the promotion of research and learning and environmental conservation.

● Promote community-oriented social contribution activities in the

Cup Sports Convention. The local contribution activities
of Osaka Works are wide-ranging including the openingof gyms and other corporate facilities to the public,

We are making social contribution through donations
from a global perspective

Amount of Donations by Category (Sumitomo Electric alone)
Total 319,951,085 yen
The SEI Group CSR Foundation

172,867,632 yen

Industrial and academic development,
research and development 24,516,000 yenGroup Manager
Administration Group
Osaka Works

Welfare projects 17,766,453 yen

Schools and education 48,951,000 yen

Sports, arts and culture 29,005,000 yen

Other 147,083,453 yen
Local development

19,165,000 yen

Environmental conservation

1,000,000 yen

Other 6,680,000 yen

Environmental
Preservation

Kenji
Matsunuma

Human Resources

In fiscal 2019, we made donations in various areas including
schools and education, industrial and academic development,
R&D, art and culture, welfare, local development, environmental
conservation and sports. For example, we gave financial support
to symphony orchestras and opera performance as part of ourefforts to assist art and cultural activities, as well as importantsocial activities such as environmental conservation by nature
conservation funds and other organizations.
We also collected matching gifts＊ from employees to make adonation to the Japan Committee for UNICEF, the Japanese Red
Cross Society and WWF Japan. In addition, we donated relief
money for the areas affected by natural disasters. We thus
developed a wide range of social contribution activities.

Supply Chainwith local people and further improve it.

Social Contribution through Donations

Qualitycontribution activities to maintain a good relationship

Under the Basic Policies, we are committed to the social
contribution activities suitable for the Sumitomo Electric Group,
which is aiming to be a Glorious Excellent Company. These
activities include the establishment of the SEI Group CSRFoundation as a vehicle to contribute to encouragement ofresearch and learning activities and human resource
development, as well as on donations, collaboration with NPOs,
support of volunteer activities by employees and promotion ofcontribution to local communities.

Social Contribution

activities from now on. The Works of Sumitomo Electrichave started to mutually exchange relevant information
on changes in the situation and how to implement theactivities. We would like to continue to make social

Groupʼs business locations all over the world.

● Provide continuous support to employeesʼ voluntary social contributions.

Core
Category

the Union of Kansai Governments as refuges to be usedin the event of Nankai Trough earthquakes, which ispredicted to occur within the next 30 years. We also
conduct regular emergency drills and otherdisaster-prevention activities for the whole community.
While respecting opinions from local people andconducting activities in light of local characteristics, wewill continue to fulfill our responsibility as a member ofthe community.
This year, many activities were canceled inevitably due
to the COVID-19 pandemic. We need to adopt a newlifestyle and also have to change the style of ourGroupʼs CSR Activities

The Sumitomo Electric Group will proactively address voluntary social
action programs, as a member of society, focusing on respect forhuman resources, attaching importance to technology, and creating
a better society and environment in accordance with the Sumitomo
Spirit and the Sumitomo Electric Group Corporate Principles, as well as
widely contributing to society through its business activities, including
the provision of products, technologies and services that beneﬁt society.

Group of Osaka Works, to which I belong, promotes
activities to contribute to the local community with thelocal people now feel free to approach the company
through us and I am aware that we have built a good
relationship with them.
Moreover, as part of the local fire-prevention activities,
we have registered three buildings of Osaka Works to

Business Outline

The Sumitomo Electric Group Basic Policies
on Social Contributions

The Sumitomo Electric Group is also committed tosupporting local communities. The Administration

plant tours and local cleaning activities, in addition tothe organization of events. As a result of the efforts,

Basis for Management

As a member of the local
community, we will support
the community and growtogether with the people

Amount of Donations by Year(thousand yen)749,738

400,0000

500,000
2013

Accumulated endowment in the SEI Group CSR Foundation

216,582 245,042 271,069 259,941
2014

2015

2016

2017

Governance

800,000

376,689 319,951
20182019 (Fiscal year)(Note) We completed the accumulation of 2 billion yen of endowment of the fund, which was
the initial target, in 2013 and have donated fund for operation only since ﬁscal 2014.

Glossary ＊Matching gift system

The company concurrently donates an amount equal
to the donation made by an employee in this system.

CSR Report 202032

Contributions
to LocalCommunities

The Sumitomo Electric Group operates in more than 40 countries and regions around the world. While
respecting the culture and customs of every region and country, we are committed to various activities
to support local communities with the aims of contributing to the development of local economy andsociety through business activities and building harmonious relations with them.

Activities in Japan
From this ﬁscal year, information is collected from 42 aﬃliates on a consolidated basis (21 Japanese companies and 21 overseas
companies), including Sumitomo Riko Company Limited, Nissin Electric Co., Ltd. and SUMITOMO DENSETSU CO., LTD., which are listed
subsidiaries. The expenditure on our corporate philanthropic activities was 502,000,000 yen.
※The amount is calculated based on the criteria mentioned in Attachment 2 “Examples of conversion into monetary value concerning the giving access to facilities and participation anddispatch of personnel” of the Survey on Corporate Philanthropic Activities in Fiscal 2017 by Keidanren (Japan Business Federation).

Promoting community support activities
and exchange with local communities● Local cleaning activities, promotion of greening,

environmental conservation activities, etc.
Nissin Electric Co., Ltd.: Nissin Electric Forest
conservation activitie ＊1●

Performed in 17 of the 21 companies including
the company mentioned above.

● Support of local fire-prevention, anti-crime andtraffic safety activities

Sumitomo Riko Company Limited: Emergency Medical
Care Experience Fair ＊2●

Forest conservation activitie ＊1

Performed in 14 of the 21 companies including
the company mentioned above.

● Opening corporate facilities(sports grounds, gyms, etc.) to the public

Emergency Medical Care
Experience Fair ＊2

Hokkaido Sumiden Precision Co., Ltd.: Shibazakura Festival ＊3●

Performed in 3 of the 21 companies including
the company mentioned above.

Shibazakura Festival ＊3● Inviting local residents and students (from elementary,junior high and high schools) to plant tour

Sumitomo Electric Sintered Alloy, Ltd.:Organizing the event a few times in a year
to invite a total of about 100 students from local elementary schools, etc●

Performed in 9 of the 21 companies including the company mentioned above.

● Opening company sites to the public to organize event

Hokkaido Sumiden Precision Co., Ltd. and Hokkaido Electric Industries Ltd.:
Jointly organizing Shibazakura Festival in May to receive about 1,500 visitors●

Performed in 7 of the 21 companies including the company mentioned above.

● Publishing local community magazines

Osaka Works of Sumitomo Electric in July 2019 and January 2020,
Itami Works in May and December 2019 and Yokohama Worksin May and November 2019

Sumitomo Riko
Soccer Festival ＊4

Contributing to sports and cultural activities● Contributing to sports activities

Sumitomo Riko Company Limited: Sumitomo Riko Soccer Festival(Mr. Takayuki Suzuki, a former member of Japanʼs national team, was invited) ＊4●

Performed in 13 of the 21 companies including the company mentioned above.

Sumitomo Riko
Charity Concert ＊5● Contributing to arts and cultural activities

Sumitomo Riko Company Limited:
Sumitomo Riko Charity Concert (at Komaki City Citizens Hall) ＊5●

Performed in 18 of the 21 companies including the company mentioned above.

Supporting education and training● Offering a work experience program for students andpractical trainnings for adults and other support

Sumitomo Riko Company Limited: Preschool ＊6●

Performed in 13 of the 21 companies including
the company mentioned above.

Preschool ＊6● Sending lecturers and holding on-site seminars

Nissin Electric Co., Ltd.:
Science class at an elementary school ＊7●

Performed in 9 of the 21 companies including
the company mentioned above.

33 CSR Report 2020

Science class at an elementary school ＊7

Activities in other countries
Basis for Management

Promoting community support activities
and exchange with local communities● Local cleaning activities, promotion of greening,

environmental conservation activities, etc.
Sumitomo Electric Sintered Component (T) Co.,Ltd.：The Kingdom ofPlanting trees at Ban Som School ＊8Thailand
Performed in 7 of the 21 companies including
the company mentioned above.

Business Outline●● Support of local fire-prevention, anti-crime and traffic safety activities

The Republic ofIndonesia

PT. SUMI INDO KABEL Tbk. (SIK)：
Donating masks and food to local hospitals ＊9●

Planting trees at Ban Som School ＊8

Performed in 15 of the 21 companies including
the company mentioned above.

● Inviting local residents and students (from elementary,

UkraineGroupʼs CSR Activities

junior high and high schools) to plant tour

SEBN-UA：Plant tour (360 persons)●

Performed in 1 of the 21 companies including
the company mentioned above.

Contributing to sports and cultural activities● Contributing to sports activities

UkraineDonating masks and food to local hospitals ＊9

SEBN-UA：Co-sponsoring a soccer competition
Performed in 6 of the 21 companies including
the company mentioned above.

Core
Category●● Contributing to arts and cultural activities

SE Bordnetze SRL：
Donating the cost of equipping a vocational schoolin Orhei with a laboratory●

Performed in 19 of the 21 companies including
the company mentioned above.

Supporting education and training

Donation to the 14th Local Contribution Committee
Meeting of Thang Long Industrial Park, Hanoi ＊10practical trainnings for adults and other support

The Socialist Republic ofVietnamSEI Electronic Components (Vietnam), Ltd.: Donation to the 14th Local Contribution Committee Meeting ofThang Long Industrial Park, Hanoi (donation of facilities, equipment, scholarships, etc. to local settlements) ＊10●

Quality● Offering a work experience program for students andSocial Contribution

The Republic ofMoldova

Performed in 2 of the 21 companies including the company mentioned above.

Supply Chain

Social contribution through sports activities
The Sumitomo Electric Group supports various sports activities and also contributes to the development oflocal communities through the activities.

We at the Track and Field Team are striving to be trusted and loved by local
people through the athletic lessons given to local kindergarten, elementaryand junior high school students, “Sumitomo Electric Atheletics Festa”, which
is an event that can be joined freely by local people, and other efforts.
I believe that our “connection” to local people encourages them to deepen

Human Resources

CSR
VOICE

their understanding of our Group, which mainly engages in B2B businesses,

instructions, which is similar to corporate management. At present, 25
athletes belong to the Track and Field Team and I coach them based on
the idea that each of them should try to make a social contribution as ateam member and also grow as a person under the principle of “Banji-nissei”
of the Sumitomo Spirit.

Yasuyuki Watanabe

and other events and endeavor to help the local community, our company

GovernanceTo connect with local people
more through sports
Manager, Track and Field Team,
Sumitomo Electric Industries, Ltd.

Environmental
Preservation

and also helps our employees enhance their awareness of CSR.
The Manager also plays a role in managing the organization, as well as giving

I would like to continuously take initiative to hold and join athletic lessons
and our team establish a win-win relationship.

CSR Report 202034

Activities of the SEI Group CSR Foundation,a Public Interest Incorporated Foundation
The SEI Group CSR Foundation is a public incorporated
foundation established for the purposes of developing
human resources and promoting academic activities

●

●

●

In fiscal 2019, the SEI Group CSR Foundation received●

Sumitomo Electric (with the whole amount, including a little●

appropriated for operation) and (1) donated 108 million yen●

contributions of a little over 172.9 million yen in total fromover 870 thousand yen donated through the cafeteria plan,
in total to university courses, (2) supplied subsidies of 30.9

million yen in total to academic and research activities andBasic glycobiological research for elucidating the pathologicalmechanism and its clinical application at Hokkaido University
Laboratory for Water, Food and Health Risk in Asia at
Yamagata University
Development of new cancer biomarkers that allow early
diagnosis of liver metastasis at Kobe University
Microbial dark matter resource use and biochemicalengineering at the University of Tsukuba
Eco-epidemiological control of mosquito-borne disease inSoutheast Asia at Ehime University
Development of IoT-based domiciliary and remote individual
exercise prescription system for cardiac rehabilitation at
Shinshu University (new)(3) provided scholarships of approximately 38.0 million yen in

For the program to support academic and research activities,

learning in Japan and 130 local students studying at overseas

32 research programs including basic science research that

total for 33 Japanese students and 18 foreign students

we received 163 applications. Out of them, we have selected

universities.

needs research funds and exploratory study by young

In the program to make donations to university courses, we

provided monetary support for one new courses along withthe six courses continued from the previous ﬁscal year.
●

researchers, and offered subsidies to them.
Details on the program are introduced in the SEI Group CSRFoundation page of our website※.

Elucidation of molecular mechanisms responsible forpathophysiology of diseases and clinical application by analysis ofendoplasmic reticulum microfragments. at Hiroshima University

CSR
VOICE

The SEI Group CSR Foundation marks its 12th anniversary.
We will properly respond to changes in social demand
Having established in 2009, the SEI Group CSR Foundation operates public interest businesses
with focus on the three programs: donations to university courses, the supply of subsidies toacademic and research activities, and the supply of scholarships.
The donations to university courses and the subsidies to academic and research activities aremainly aimed at creative studies on natural science, engineering and sociology. The target areas

Naoki Ikeguchi

Secretariat,
the SEI Group CSR Foundation

are wide-ranging, such as the development of new materials, information technology, life
science and economic globalization, covering both humanities and sciences. In the screening
process, it is not important whether the research is related to a business of the Sumitomo
Electric Group or not but the selection committee members invited from various fields makedecisions based on their comprehensive knowledge. From fiscal 2019, the scholarships are provided to students in
Masterʼs programs. We will enhance our support to motivated students to ensure that they can concentrate on academic
work. While meeting the needs of the times and society, which will keep changing, we would like to continuously expand
the scope of our support and properly fulfill our responsibility as a member of society.

CSR
VOICE

I appreciate the SEI Group CSR Foundation for extending a helping
hand to the young people who are doing their best
Not everybody in the world gives out，
that should never be forgotten. l want to thank Sumitomo
Electric for helping young adults like me that put their all and are not only thankful for this kindof support, but also take advantage and reflect upon society acting in a responsible manner.
This support means a lot to me, not only to me, but to my family as well. I live in a ranch that isa 30-minute walk to the highway, which is where my only source of transportation is. Everyday l
travel from the state of Jalisco to the neighboring state Aguascalientes, which involves a great

Josue Vazquez Franco
4th semester student,
Basic Science Center,
Computer Systems Engineer,
Autononnous University
Of Aguascalientes

economic expense in tickets and time.
My dad works as a farmer, as you know, this type of work is very heavy, and poorly paid.
Sumitomo helps cover my tuition, so that with this money, we can invest in other expenses.
Livelihoods that support us young adults are the ones we need; they are truly inspirational andhelp build other companies like Sumitomo. Studying a career like System Engineering gives me a

grand image of everything l can do, seeming as technology is present in everything we do, I would like to develop
programs to help others. l say farewell thanking Sumitomo once again. Thank you for inspiring young adults with support
like this and at the same time reiterating my commitment as a students and commitment to society.

35 CSR Report 2020

Web

※ Details are available at the SEI Group CSR Foundation page of our website.

https://www.sei-group-csr.or.jp/e/index.html

Program to Make Donations to University Courses

Ehime University

Eco-epidemiological control of mosquito-borne disease in Southeast Asia
- Course on mosquito-borne infectious diseases in Southeast Asia
Basis for Management

We will contribute to the promotion of“One Health” in Southeast Asia throughthe support of developing countries on
health issues

Two well-known mosquito-borne infectious diseases are malaria anddengue fever. While malaria infection usually occurs in rural areas, dengue
fever infection is commonly spread in urban areas. Increases in rainfall asa result of climate change, as well as urbanization, have expanded theareas suitable for the breeding of mosquitos, which generates concern forsystem for measures to control infectious diseases by linking local partner
schools mainly in the Philippines and Indonesia, where dengue fever

The dengue virus forms an infection cycle where a mosquito is infectedwith the virus through a person and then infects more than one personwith it. To break this cycle, we paid notice to a bacterium called

Wolbachia, which functions as a vaccine for mosquitos. Then, we foundthat around 17% of mosquitos in urban areas of the Philippines have

Wolbachia and we are now working to breed the bacterium artificially.

Center for Marine Environmental Studies
Ehime University■ Number of people infected with dengue feverin the world (source: WHO)
(100 million people)

3.0

2.5
2.0
1.5
1.0
0.5
0

1990

Dengue
virus

2005

2010

2016

Infection

Infection

Infection

Personclimate change scenario and dengue fever risks and ICT-based warning of

QualityDengue vector
Infection
mosquito

Infection

inhibit the infection, to control the spread of dengue viruses. We are also
estimation of the range where mosquitos can fly, the forecast of the

2000■ The infection cycle of the dengue virus

We plan to increase mosquitos with Wolbachia, which is expected toresearching various measures from an ecological perspective, such as the

1995

Social Contribution

infection has been spread, with research institutions in the US and Europe.

Dr. GAMBOA Mendez Maribet Ariana,
Assistant Professor (right)

Core
Category

the spread of dengue fever infection. We have established a research

Professor Kozo Watanabe (left)

Groupʼs CSR Activities

Dengue fever, a mosquito-borne infectious disease,is increasing due to climate change and urbanization

Business Outline

The SEI Group CSR Foundation makes donations to
excellent university courses that contribute to social
development. One of them is a program of Ehime
University that supports developing countries andcontributes to genuine international exchange throughresearch on the eco-epidemiological control ofmosquito-borne infectious diseases in Southeast Asia.

Infection
Infection

dengue fever on a real-time basis.

Supply Chain

Development of global human resources andestablishment of a system for “One Health” research
Since dengue fever can be propagated between animals and people, it isessential to adopt the concept of “One Health” for cooperation between
experts from the fields of people, the environment and animals.

Human Resources

In developing countries, in particular, there is a serious shortage of

researchers in animal-related disciplines in comparison with the fields

related to people and the environment. It is urgent to develop humanresources to solve the shortage. The selection of our program as arecipient of subsidies from the SEI Group CSR Foundation allowed us toinvite students from Southeast Asia to Ehime University for research andA mosquito collection teamwas composed of local
researchers and students

Environmental
Preservation

also establish a short-term training program where students are sent to
the US and European countries, in which the relevant research isadvanced. In the future, we would like to increase the number of local

research institutions in Southeast Asia and help them become self-reliant,so that students returning to their countries can play active roles there.

We also aim to establish a network of collaboration between Japanese

universities or research institutions and those in Southeast Asia to support
Governanceeach other for in-depth research.

Taking the donation to our program as an opportunity, Ehime University

opened an overseas satellite office at De La Salle University in Manila, thePhilippines in October 2019. A Japanese university rarely has overseas

satellite facilities for research purposes and we think that it is a welcome
development.

Mosquito breeding facilities installed in the campusof De La Salle University, the Philippines

CSR Report 2020

36

CSR Core Category

Quality

Product Quality &Product Safety

CSR Priority Theme

Product Quality & Product Safety

Basic Approach
As a corporate entity involved in manufacturing, theSumitomo Electric Group aims to provide safe, reliable andhigh-quality products to customers in a stable manner as afundamental principle based on customer-oriented andquality-oriented policies. To continue to achieve this, ourWe support the solid brand powerof the Sumitomo Electric Groupthrough global quality control

group works to strengthen its underlying manufacturing
competence and continuously makes steady efforts tosystematize daily duties as a mechanism, implement themsoundly and further improve the mechanism.
Sumitomo Electric has historically strived to enhance the
manufacturing competence under its basic policies including
participation of all employees and continuous improvement.

While the Sumitomo Electric Group continues to operate ona global scale, quality management across the Group is
crucial as it makes a great contribution to the maintenanceand enhancement of the brand value of Sumitomo Electric.
To this end, we directly visit domestic and overseas sites to
conduct Global Quality Management System Audits andGlobal Quality Management Training. In the audits, weevaluate the conformance of business rules, standards andother documents, as well as the manufacturing process, with
the Sumitomo Electric Group Quality Management Global
Standards. The audits also aim to urge the staﬀ toautonomously examine the problems in-depth through thecorrection of ﬁndings and learn lessons from them. In theremediation activities and reporting sessions after the audits,
we give support using the combination of site visits,groupware and other means.
In the quality management training, we aim to disseminate
the quality policy of the Sumitomo Electric Group in overseas
sites by getting local staﬀ to learn basic knowledge throughe-learning and other methods and practice it throughactivities including exercises performed locally using materials
translated into various languages mainly for key personnel.
Eﬀorts to enhance quality are essential for the sustainablegrowth of our Group. While we have conventionally focused
our activities on China and the ASEAN region, we will expand
them to cover the US and Europe as well in the future to

To promote these activities even more strongly, we set up
Monozukuri Technology Improvement Committee as acompany-wide organization in 2015, and promotegroup-wide activities to strengthen its manufacturing
capabilities.
As part of the efforts to systematize the daily operation, theSumitomo Electric Group Quality Management Global
Standards were established as a common framework to be
applied to divisions throughout the Group in 2013. In
addition, the content of the standards is reviewed andrevised on an as-needed basis. The divisions of our groupmake continuous efforts to develop and strengthen their own
quality assurance systems based on the standards so that
customers can use our products with a sense of security.
A company-wide quality improvement activity called the QR-1
campaign was also developed, in which we have madecontinuous efforts to enhance the awareness of quality
among all employees through the three activities of Own
Process Quality Assurance Activities, Quality Management
Education and Global Quality Management System Audits.

3 Activities That Support the Company-wide
Quality Improvement Activity
1. Promotion of Own Process Quality Assurance Activities
2. Quality Management Education
3. Global Quality Management System Audits

further ensure thorough quality control on a global scale.

Development of QR-1 Campaign
We develop the QR-1 Campaign for
the improvement of quality and reliability

As the Sumitomo Electric Groupʼs business activities consist
mainly of business-to-business (B2B) transactions, we believethat above all further quality improvement for our products

Takeo Komiya
Senior AssistantGeneral Manager
Quality Management
Division

will lead to greater customer satisfaction. Thus, we launched
the reliability improvement campaign throughout the Groupin 1975 based on our customer-oriented and quality-oriented
policies. Since then Sumitomo Electric has carried out the
campaign with the priority subjects selected according to theneeds of the times. We launched the
QR-1 campaign in ﬁscal 2002, aiming to
improve quality from the viewpoint ofcustomers, prevent quality risk andestablish its structure for quality andreliability to overtake the competition.

37 CSR Report 2020

QR-1 campaign logo
QR：Quality & Reliability

Since fiscal 2010, we have promoted Own Process Quality
prevent defects in each process from being produced or
passed down to the following process. As part of these
initiatives, defect-free process conditions are established at
the design stage and the conditions are maintained throughprocess management at the mass production stage. In casethat any defect still occurs, we work to identify the cause andconditions.
Each division of the Sumitomo Electric Group is constantlyin the Corporate Staff Group strives to further stimulate theactivities through training to develop staff members who
implement the initiatives, exchange meetings between

Process

Pass
no defect

Good products

Process

Produceno defect

Pass
no defect

Inspection

1st

S

S

A

A

2nd

S

A

B

C

3rd

A

B

C

D

4th

A

C

D

E

Status of the processes and operations

1st

A suﬃcient foolproof mechanism is in placeand defects are prevented from being
produced or passed to the following process

2nd

No defect is produced or passed to thefollowing process during normal operations

3rd

There is a possibility that defects can beproduced or passed to the following process

4th

Defects cannot be prevented from being
produced or passed to the following process

Enhancement of
Quality Management Education

Quality Management Education is developed ongroup-wide and global scales to cultivate
the culture of “quality first”
The Sumitomo Electric Group provides employees withtraining on quality control at the SEI University (see Human
Resource Development in P52 for details) to improve andGood products

Shipment

ensure the quality of products and services at higher levels.

Quality

Good products

4thSocial Contribution

Produceno defect

3rd

Core
Categorydifferent divisions and other support for the activities.

2nd

Rank

committed to Own Process Quality Assurance Activities fortheir products. In addition, the Quality Management Division

1stGroupʼs CSR Activities

improve the quality in the pursuit of defect-free process

Rank of prevention of defect ﬂow-out

Business Outline

Assurance Activities, which are comprehensive efforts to

Rank of preventionof defect occurrence

We are introducing the Degree of Quality Assurance
Level-based assessment and implementing initiatives
to improve the degree at overseas sites

Degree of
Quality
Assurance

Basis for Management

Own Process Quality Assurance Activities
Aiming for Zero Complaints

In December 2019, a new training course on theenhancement of the quality assurance function was launched
for managers in the quality assurance divisions for the

Assurance, which is an indicator that visualizes quality risks,
as an initiative to eliminate defects in processes. In thissystem, the probabilities of the prevention of defectoccurrence and defect flow-out are respectively determinedby type of defect in each process on a four-point scale fromcombined to determine the Degree of Quality Assurance on a
six-point scale from S to E.
To prevent complaints from occurring, we should ensure thatthe Degree of Quality Assurance for the type of the defect is
B or higher. For example, when the prevention level of defectoperation) and that of defects being passed to the following
process is 4th (defects cannot be prevented from being
passed to the following process), the Degree of Quality
Assurance is only C. There is still a possibility that defects
may be passed on to the customer if no action is taken in thiscase, and efforts have to be made to improve the Degree ofThis system has enabled an objective assessment of quality
risks and made risk reduction efforts more effective. We willcontinue to develop these Own Process Quality Assurance
Activities on group-wide and global scales.

Glossary ＊QR-J

Own Process Quality Assurance
practitioner training course” to develop key
persons for the Own Process Quality
Assurance activities in each division.

＊ＭＫＰ

taken the course as of March 2020. We will continue to give
those training lessons to enhance the quality assurance
mechanism.
We also work to improve various domestic education
programs, such as position-based training for all employees,
nomination-based training in accordance with specializedjobs and special issues and optional training to learn relevant
knowledge, along with practical education including QR-J＊,

MKP＊ and GKP＊. Overseas, we have initiated the personnel
education activities of the Sumitomo Monozukuri
Development Committee in the U.S., as well as the meetingsof the Quality Management Committee in China, as
opportunities to organize the exchange of information onmodel cases, and provided training sessions on Own Process
Quality Assurance Activities. In fiscal 2019, a total of 6,492
persons, including overseas employees, completed Quality
Management Education programs. The cumulative number ofGovernance

Quality Assurance to B or higher.

thorough quality compliance. A total of 206 persons have

Environmental
Preservation

occurrence is 2nd (no defect produced in a normal

capabilities and quality improvement as well as ensuring

Human Resources

1st (sufficiently prevented) to 4th (not prevented), andpurposes of accelerating the strengthening of manufacturing

Supply Chain

We also promote the introduction of the Degree of Quality

persons who participated in the programs since fiscal 2010
has reached 50,989.
We will continue to develop the culture of quality firstthrough various education programs.

Abbreviation of “MONOZUKURI-KAKUSHIN
professional training Program” that is the practicaltraining program to develop candidates for future
plant managers and key personnel for manufacturing.

＊ＧＫＰ

Abbreviation of “GENBA-KAIZEN professional training
Program” that is the practical training program to develop
key-personnel who are to manage and supervise
manufacturing ﬁelds and promote shop-ﬂoor improvement.

CSR Report 2020

38

Global Quality Management System Audits
We conducted audits of 119 Japanese bases and47 overseas bases by fiscal 2019
We systematically conduct Global Quality Management

System Audits to evaluate the quality control initiatives ofeach business unit in light of the Sumitomo Electric Group

Quality Management Global Standards from the perspectiveof customers. In these audits, we identify weaknesses of each
unit in terms of management, design, manufacturing andcenter function to provide an opportunity to improve its

quality assurance system and support its follow-up activities
to reinforce the structure.

Since the start in fiscal 2010, the audits have been conducted
at 119 sites in total in Japan. Progress in the improvementof the quality structure is seen as the audits are repeated.
We will repeat the audits with the aim of promoting

continuous improvement of the quality assurance system.

Overseas, the audits were conducted in a total of 47 sites in
China and Southeast Asia through collaboration withdomestic units having the center function, in an effort toenhance awareness of quality among local employees.

To maintain and improve the quality assurance system basedon the Group Quality Management Global Standards, we willcontinue to check progress in compliance with the standards
through the global quality management system audits.

Based on this recognition, we focus on the training of theemployees engaged in sales activities to enhance theirabilities to understand the problems of customers andpropose solutions to them. We also cooperate with external
consultants to give training to management staff in Japan tolearn methodologies for making proposals and methods tomanage and instruct their subordinates. In addition, action

guidelines to stimulate organizations have been formulated

for management staff in charge of customer satisfaction (CS)
improvement. We will also conduct surveys to listen to theopinions of customers, analyze the results and give feedback
to ensure CS improvement.

To further increase customer satisfaction and strengthen theSales Group as a whole in response to progress inglobalization, we will make use of the opinions ofstakeholders collected through our visits to customers, trade
fairs, websites and other means for our future initiatives.

Quality Compliance

We aim to become a company trusted by society
The attitude of companies towards quality is evaluated bysociety more strictly than ever these days. Supply of productsthat surely have the quality required by customers incompliance with laws and rules is an absolute foundation forcompanies to grow in a sustainable manner. The Sumitomo

Outcomes of the Quality Management Activities
We will continue to make steady efforts toeliminate complaints

Thanks to our ongoing quality management activities, thenumber of complaints is on the decrease and has been
reduced by about 15% year-on-year in fiscal 2019.

However, many issues still need to be improved to eliminate
complaints. We will continue to make steady efforts toeliminate complaints with the three main pillars of Own

Process Quality Assurance Activities, Quality Management

Education and Global Quality Management System Audits, inaddition to Monozukuri Technology Improvement activities.
Number of Complaints by Year (results in 2012 = 100)
100

100
84.3

80

79.1

Electric Group takes the measures mentioned below toensure quality compliance.

《 Clarification of Rules on the Prevention of Quality
Data Falsification and Improvement of the Education 》
We have established the Sumitomo Electric Group Quality

Management Global Standards as the basic rules on quality
to be followed by all divisions as mentioned above.

In consideration of the cases of other companies on quality
data falsification and improper inspection, we haveformulated internal rules on the prevention of quality data
falsification and incorporated them into the standards todisseminate the rules and ensure compliance with them.
In fiscal 2018, we also started to provide education on theprevention of quality data falsification in the annualcompliance training for the Groupʼs managers in Japan.

The course was attended by about 6,500 managers in fiscal

89.5
72.5

68.1

60

66.4

2019. In addition, we have added a curriculum on the56.5

prevention of quality data falsification to the quality

management education for employees in different positions(16 position-based courses and eight nomination-based

40
0

2012

2013

2014

2015

2016

2017

2018

2019 （Fiscal year）(Note) The data cover Sumitomo Electric and its manufacturing aﬃliates in Japanand overseas (including the Sumitomo Wiring Systems Group)

Customer Satisfaction Improvement
Activities by the Sales GroupWe are committed to activities to understand the problems
of customers and make proposals to help solve themcourses) to expand and reinforce our education on quality
compliance.

《 Strengthening of the Function to
Check Quality Data Falsification 》

While the Quality Management Division conducts Global

Quality Management System Audits of each division in the

Sumitomo Electric Group, we will enhance inspections for theprevention of quality data falsification in the audits.

Our group also has a mechanism where all divisions conduct

Our Groupʼs business activities consist mainly ofself-examination of their main operations every year. We havethat the proper identification of the opinions and demands

inspection items of the self-examination to ensure the absence

further quality improvement of products and services will

division to develop rules for the prevention of quality databusiness-to-business transactions, and we therefore believe

added the prevention of quality data falsification to thefrom customers (companies) through daily sales activities andof quality data falsification and check the efforts of eachlead to greater customer satisfaction.

falsification and provide quality compliance training each year.

39 CSR Report 2020

We are striving for the improvement of the safetylevel through practical training and voluntary
inspection with focus on the pursuit of product safety
at the product development and design stages
Under the corporate principles of offering the very best
contributing to creating a better society and environment,with a firm awareness of our social responsibility, theSumitomo Electric Group is making efforts to enhance the

SEI Guidelines for Green Quality Purchases (note) based on
the standards, while conducting product assessment at thedesign and development stages. Through these initiatives, we
strive to prevent hazardous chemical substances with large
environmental impact such as mercury and cadmium frombeing contained in products.
In fiscal 2019, we started to audit divisions and affiliates ofBusiness Outline

goods and services to satisfy customer needs andBasis for Management

Product Safety (Product Liability)

our Group on the management of chemical substances in
products to improve the management system for thesesubstances on a group-wide basis.

safety of products.
We adopt the basic approach that the products to be
introduced to the market should undergo thoroughGroupʼs CSR Activities

examination of safety, especially at the development anddesign stages．

《 Training on Product Safety 》

For product safety, we hold annual technical seminars on the
Product Liability Act and the revised Consumer Product Safety
Act through cooperation between the Quality Management
Division and the Legal Department.
The seminars are based on the idea that the safety standards
predictable misuses. The content is designed to deepen the(Note) As the types of products and requirements from customers diﬀer greatly
between divisions and aﬃliates, the guidelines and standards are applied
ﬂexibly according to their respective circumstances.

traineesʼ understanding of the laws with reference to actual
such as the review of product safety at the development anddesign stages, proper display of warning labels, maintenanceof product safety, collection of product safety information
and response to accidents.

《 Voluntary Inspection on Product Safety 》

inspection of the check items applied to the whole Group
once every two years in order to identify any product safety
risks.
Based on the inspection, necessary measures are discussed
and implemented autonomously to strengthen the system to

The Sumitomo Electric Group has taken measures to replace
the substances listed in the EU RoHS＊ and ELV Directives＊,

and is meeting customer demand for products that containno prohibited substances. For example, we started to totallyeliminate the direct use of four types of phthalates banned by
the RoHS Directive in our products in fiscal 2017 before theimplementation of the regulation in July 2019. We have also
discontinued the use of these substances for the parts to be

Management ofChemical Substances in Products

In pursuit of reducing environmental impact of the productsof the Group and our customers, as well as improving
compliance, the Sumitomo Electric Group is committed toproper management of chemical substances in products. To
Management of Chemical Substances in Products(note), which

was established to specify the items to be carried out at eachstage of the manufacturing process such as procurement,

At the same time, to comply with the REACH＊ regulation, we
are working for final registration of chemical substances one
by one as required and completed the registration of gallium
arsenide (GaAs) in 2012 and tungsten carbide (WC) in 2017.
We are also making efforts to ensure appropriate responses
to the requirements of the REACH regulation including
reporting of the SVHC＊ contained in products.

To quickly respond to progressive tightening of regional
regulations on chemical substances across the globe, ourgroup is working to collect information on regulations in
Europe, China, Southeast Asia and other countries and sharethe information within the Group.

Environmental
Preservation

this end, we implement the SEI Guidelines for theahead of the start of the regulation.

Human Resources

We are managing chemical substances properly inaccordance with our own guidelines based onJapanese Industrial Standards(JIS) guidelines

used in our products through cooperation with suppliers

Supply Chain

promote product safety measures.

We are promptly responding to progressive
tightening of regional regulations on chemical
substances across the globe

Quality

As part of the product safety initiatives, we conduct voluntary

Compliance with Regional Regulations on
Chemical Substances across the GlobeSocial Contribution

cases, as well as to provide practical lessons on the issues

Core
Category

established by companies should also take into account thedesign, production and quality assurance based on JIS Z7201
Management of Chemical Substances in Products - Principles
Governanceand Guidelines.
We have also established the SEI Standards for Chemical
Substance Management, which are the standards for the
management of chemical substances in products to be
managed at each of the stages, and implement the

Glossary ＊RoHS Directive

RoHS stands for Restriction of the use ofcertain Hazardous Substances. This EU
Directive restricts the use of certain
hazardous substances in electrical andelectronic equipment.

＊ELV Directive

ELV stands for End of Life Vehicles. This EU
Directive restricts the use of lead and threeother hazardous heavy metals in automobiles
to reduce the impact of end-of-life vehicles on
the environment.

＊REACH regulations

REACH stands for Registration, Evaluation,
Authorization and Restriction of Chemicals.
Regulations of the European Parliament and of theCouncil for protection of human health and theenvironment in the European Union.

＊ＳＶＨＣ (Substances of Very High Concern)
SVHC stands for Substances of Very High Concern.
Chemical substances designated by the EU as
substances which may cause serious eﬀects to humanhealth or the environment.

CSR Report 2020

40

CSR Core Category

Supply Chain

Supply Chain

CSR Priority Theme

Basic Procurement Policies

Promotion of CSR Procurement

We share our Basic Procurement Policies with main
suppliers and seek their understanding and cooperation
The Sumitomo Electric Group considers procurement to be aservice that supports the foundation of its businessactivities, and in May 2006, established Basic Procurement

Using various data, we aim toestablish strong and healthy
relationships with suppliers

Policies in line with the Sumitomo Spirit and the Sumitomo

Electric Group Corporate Principles. We have distributed the
Basic Procurement Policies to our main suppliers, along with
our Group companies, and have sought their understanding
and cooperation.

Basic Procurement Policies (extract)※
1. Promoting procurement activities that contributeto creative and global corporate activities

Under the current circumstances where massive natural
disasters occur more often and infectious diseases such as

2. Promoting fair and impartial procurement activities

the COVID-19 are prevalent, the establishment of a robust

3. Promoting compliance-based procurement activities

supply chain is essential for the business continuity of theSumitomo Electric Group and has also started to attract

4. Promoting procurement activities based on
mutual trust and cooperation with suppliers

attention from various stakeholders.

5. Promoting procurement activities friendly to
the global environment

I belong to the Administrative Department of Procurement
Division and am now in charge of the establishment andoperation of a system to summarize information on suppliers
to strengthen the supply chain of our group. In addition to
the ﬁnancial information and the details and size ofGroup Procurement Systemtransactions of suppliers, we now handle diverse information

We are working to ensure thorough compliance with
our policies and enhance awareness amongprocurement staff on a global scale

including the BCP risks of the production areas and theresults of CSR procurement surveys. While the main task ofthe system was the accumulation of data until now, we haveadvanced to the stage to make eﬀective use of the data forthe sophistication of supply chain management. Whendisasters occurred due to a big typhoon, etc. in 2019, wewere able to check the impact on suppliers promptly as an
initial response in BCP, which made me recognize
achievements from the daily operation of the system.
Proper management of the supply chain does not only help
our group avoid risks but also gives beneﬁts to suppliers
because it enables us to provide the necessary support tothem. We will be continuously committed to theestablishment of even more robust and healthier
relationships with them.

Based on the Basic Procurement Policies, the procurement

measures and activities of the Sumitomo Electric Group aredeveloped under the initiative of the Group Procurement
Collaboration Oﬃce, an organization established in the

Procurement Division. The oﬃce is composed of the staﬀ incharge of procurement in 22 divisions and Group companies

including Sumitomo Riko Company Limited and Nissin ElectricCo., Ltd.

Speciﬁcally, these divisions and Group companies work
together to promote value analysis (VA＊) and provide

education to enhance compliance related to procurement

and improve procurement skills. An e-mail magazine is also

distributed to more than 400 procurement staﬀ members toshare necessary information throughout the Group.

Overseas, we promote coordinated procurement on aregional basis under the initiative of the International

Procurement Oﬃces (IPOs) of the Procurement Division

located in China, ASEAN, the United States and Europe.
As part of the eﬀorts, we organize meetings of liaison

committees composed of IPOs and procurement staﬀ ofGroup companies to develop group-wide initiatives and

Kentaro Suzuki

provide related training to procurement staﬀ.

Planning Group,
Administrative Department,
Procurement Division

Initiatives to Ensure Compliance withLaws Related to Procurement

We are conducting on-site inspections of divisions andaffiliates and giving them instructions to facilitate their
independent activities for compliance in procurement
The Procurement Division is committed to the following threepriority matters in its eﬀorts to ensure compliance with laws
related to procurement:

41 CSR Report 2020

Web

※ For the entire policies, please see the following page.

https://global-sei.com/csr/sociality/procurement.html

Glossary ＊Value Analysis (VA)

VA is conducted to replace Material X withcheaper Material Y that still provides thequality required for the product.

●

●

●

Compliance with the Subcontract Act＊ in regard to
appropriate dealings with subcontractors

operating rate, in some suppliers in China, the US, Europe andSoutheast Asia. While we have fears of a supply shortfall forabout 200 items, there has been no serious impact on ourCompliance with the Customs Law in regard to
appropriate custom reports and payments

production activities so far with reports from suppliers on theirCompliance with internal control rules in regard to
procurement in the Sumitomo Electric Groupdates by them. We will maintain these activities and continue

inspections in Sumitomo Electric and its aﬃliates in ﬁscal 2019

to conﬁrm compliance with the rules as mentioned in the tablebelow.

operation status and other issues and adjustment of delivery
to exchange information with suppliers to strengthen our

procurement system and ensure the stable supply of products
and services.

Education System

Subcontract
Proceeds Act

In Japan: 7 aﬃliates (8 bases)

Internal Control

In Japan: 7 aﬃliates (8 bases)
Overseas: 23 aﬃliates

Production Group and Corporate Staﬀ Group, as well as

Customs Law

In Japan: 26 divisions of Sumitomo Electric and its
aﬃliates importing directly from overseas

Training Seminars in ﬁscal 2019.

Groupʼs CSR Activities

We provide training to improve procurement skills
on group-wide and global scales

Inspection results

As in the previous ﬁscal years, we provided training fortraining for R&D Group, in the Procurement ComplianceIn the on-site inspection, the Procurement Division visits thetarget sites to check compliance with laws related to

Act and internal control, we selected the target sites again in
ﬁscal 2019 on the assumption that we will regularly visit all

relevant laws and rules. With respect to the Customs Law, allof the sections and companies importing directly from overseas
were inspected to check the correctness of the amounts incustom reports and other items, and we gave guidance onrevisions of the Customs Law and other laws.

the education and inspection activities to promote compliancewith laws related to procurement.

delivery lectures with the same content every year to further
enhance the understanding among the attendants andestablish and improve their awareness of compliance.

While the training was provided only via a video conference
system due to the impact of COVID-19 this ﬁscal year, we

will continue to organize training in a way that more Group
employees can attend them to further enhance theawareness of compliance related to the procurement ofmaterials within our group.

Training for R&D Group was provided to ensure that the staﬀ
can not only learn the procedures to obtain necessary

materials for R&D activities but also understand the need toestablish a proper cooperative relationship with suppliers at
the time of the commercialization of R&D outcomes. The

Response with Business Continuity Plan (BCP)
Sumitomo Electric Group is committed to the development andimplementation of a business continuity plan (BCP) for

results of the training are presented in the table below.
Results of training
Production
Group andCorporate
Staﬀ Groupprocurement divisions, which prepares for large-scale disasters
and other emergency situations, to ensure stable supply of
products and services and thereby avoid impact on thesituation that the suppliers of our parts and materials have
suﬀered damage from disaster and suspended production

activities. In addition, if a disaster occurs, emails are sent to theemergency contact addresses of the suppliers registered inadvance in the system to grasp the extent of the damage in a

prompt and accurate manner and thereby minimize the impact.

Organized in 2 regions
Attended by 25 persons● Themes: Subcontract Proceeds Act, internal control andprocurement for the commercialization of research outcomes●

R&D Group●

In the Procurement Division, an OFF-JT＊ program for working
staﬀ is provided for the purposes of development of reliable

procurement staﬀ and handing down of procurement ethics,
knowledge and expertise. This program is also combinedwith existing OJT＊ to create a synergistic eﬀect that will
improve procurement skills.

In ﬁscal 2019, seven courses including “procurement-relatedKanto region. In these situations, nevertheless, we were able togiving lectures through teleconferences with sites in Japan andour customers by, for example, using the alternative products

We also have to make the Subcontract Proceeds Act known

receiving supply preferentially with the cooperation of ouralso in manufacturing and development divisions. For thissuch activities.

personnel on the act, which means core personnel for theclose attention is given to problems in the supply chain caused

act in each division and company, in a planned manner.

devastating damage to Chiba and other prefectures in thelaws and regulations, and CSR procurement” were provided by

procure materials without impact on our production or that ofoverseas. In total, 223 persons attended the lectures.

that had been examined in the above-mentioned activities andwidely not only in the divisions in charge of procurement but

suppliers. These incidents reminded us of the signiﬁcance of

reason, we organize a training program to develop key

At present, due to the impact of the COVID-19 pandemic,

establishment of an autonomous system to comply with theGovernanceof natural disasters including Typhoon Faxai, which caused

Environmental
Preservation

In ﬁscal 2019, we had fears of a supply shortfall due to a series●

Human Resources

production activities of our customers. The BCP assumes a

Organized in 12 regions (video conference)
Attended by 766 persons● Themes: Subcontract Proceeds Act, Customs Law andinternal control●

Supply Chain

Our efforts to strengthen the system forstable procurement are producing steady results

Quality

The Procurement Division will continue to expand and improveis organized as training via a video conference system and asSocial Contribution

domestic aﬃliates, and conﬁrmed their compliance with

The training for Production Group and Corporate Staﬀ GroupCore
Category

procurement. For the inspection on the Subcontract Proceeds

The Act against Delay in Payment of Subcontract
Proceeds, etc. to Subcontractors Japanese law

Business Outline

As to the priority matters, we continued to conduct on-site

Glossary ＊Subcontract Act

Basis for Managementby the suspension of operation, as well as decreases in the

Priority matters＊OJT and OFF-JT

OJT (On-the-Job Training) is education and training received while the trainees performdaily work. On the other hand, trainees receive OFF-JT (OFF the Job Training), such asgroup training sessions, when they are temporarily away from daily work.

CSR Report 2020

42

A training program for overseas purchasing managers waslaunched in ﬁscal 2017 with an aim to develop the corepersonnel for the improvement of our procurement capabilities
on group-wide and global scales. In this program, we provide
the managers with opportunities to learn procurement-related
methods for cost reduction, risk management and other issues,
as well as the Sumitomo Spirit and CSR and other procurement
policies, in order to improve their skills and encouragethem to share the learning with the procurement staﬀ of
their companies. While improving the content of the training,
we will gradually expand the scope of the employees whoneed to attend the program in the next ﬁscal year andthereafter.
Results of Education
No. ofNo. ofNo. ofparticipants
lecturescompanies(total)Date

No. ofcourses

1st half of
FY2019

7

26

122※

23

2nd half of
FY2019

7

26

101※

23

Key personnel
development program

2nd half of
FY2019

1

4

11

10

Training for overseas
purchasing managers

2nd half of
FY20191

1

5

5

OFF-JT
Education program※Number of those who passed the ﬁnal exam

Sumitomo Electric GroupCSR Procurement Guidelines (extract)※
The Sumitomo Electric Group aims to contribute to creating abetter society and environment, with a ﬁrm awareness of oursocial responsibility. To this end, the suppliers that directly or
indirectly provide their products and services for us are also
required to work on the activities together with us. Therefore, wehave summarized our requests to the suppliers of the Sumitomo
Electric Group in these guidelines, and the suppliers are requested
to promote compliance with them. Our suppliers are also asked
to request their suppliers to comply with the guidelines.

1. Provision of Useful and Safe Products and Services
2. Improvement of Technological Capabilities

3. Promotion of Sound Business Management
4. Contribution to Preservation of
the Global Environment

5. Compliance with Laws and Social Norms andFair and Proper Business Activities
6. Social Contribution and Elimination of Antisocial Forces
7. Respect to Human Rights and Considerations ofOccupational Health and Safety(Including Responsible Procurement of Minerals)

8. Disclosure of Information and Promotion ofCommunication with Society
9. Maintenance of Conﬁdentiality and Information Security

Contribution to Preservation of
the Global Environment

collaboration with Sumitomo Mitsui Banking Corporation in

We started to survey our divisions and domestic aﬃliates(excluding the listed subsidiaries) in ﬁscal 2013. In the three
years from ﬁscal 2017 to 2019, approximately 1,750 suppliers,
which represent 90% of the value of our domestic
procurement, cooperated with the survey. As shown in theﬁgure below, more than 40% of the suppliers received ascore of 4 or higher out of 5. As to particularly important
items, we have an interview with the selected suppliers or
conduct an on-site inspection and ask them to enhancecompliance, information management and other relevant
activities. For the suppliers with a low score, we will try to
improve their CSR procurement through the organization ofworkshops and other measures. We also surveyed the
suppliers of our overseas aﬃliates, mainly those in China andthe ASEAN region, and have continued the survey since then.

use it now. In this system, a favorable interest rate is applied to

Results of the domestic CSR procurement survey from ﬁscal 2017 to 2019

We are committed to green procurement as
an essential quality factor
To promote environment-friendly procurement activities, theSumitomo Electric Group has made eﬀorts to eliminate the useof banned substances in its products and enhance control ofother harmful substances contained in products, based on the
Sumitomo Electric Group Green Procurement Guidelines sinceﬁscal 2003. In ﬁscal 2012, these guidelines were revised to issue
SEI Guidelines for Green Quality Purchases as a new version.

We consider the guidelines as part of essential quality standards
and use them to maintain green procurement activities.
While we introduced the ECO Factoring System in

2009, 63 suppliers have applied for the system and 46 of them
suppliers that promote a certain level of environmental

conservation activities in order to encourage suppliers to
perform such activities.

Commitment to CSR Procurement

We also ask our suppliers to comply with the
CSR Procurement Guidelines by specifying compliancewith them in the basic transaction agreement
To promote our commitment to CSR in the procurement
activities, we established the Sumitomo Electric Group CSR
Procurement Guidelines based on the Sumitomo Electric Group
Corporate Principles and Charter of Corporate Behavior in
August 2010. The guidelines were revised to include provisions
concerning response to the issue of conﬂict minerals＊ in ﬁscal
2014. To enhance promotion of the guidelines, we also ask
suppliers to take proper action by specifying relevant
requirements in the basic transaction agreement.
For the promotion of CSR procurement, in addition toactivities to disseminate the guidelines among suppliers, weneed to check the progress in the dissemination through CSR
procurement self-assessment of suppliers and also promote
improvement activities in full coordination with suppliers.

43 CSR Report 2020

Web

※ Please see the following page for the entire guidelines.

https://global-sei.com/csr/guideline/

Lower than 2.0
4％

2.0 to 3.0
19％

3.0 to 4.0

Averageevaluationscore

4.0 or higher
43％

34％

Among our group companies, we began to strengthen
cooperation with Sumitomo Wiring Systems, Ltd., Sumitomo
Riko Company Limited and Nissin Electric Co., Ltd. in ﬁscal
2018 and launched a CSR procurement survey of them inﬁscal 2019. Each of them is scheduled to meet the target of
conducting CSR procurement from the suppliers that
represent 90% of the value of its domestic procurement inﬁscal 2020.
From ﬁscal 2020, we will further improve the conventional
activities and enhance coordination with Group companies tomeet the target of "Promotion of CSR procurement covering
the suppliers that represent 90% or more of the value of ourdomestic procurement" and increase the level of CSR
procurement.

Glossary ＊Issue of conﬂict minerals

Armed groups that are involved in serious violations of human rights obtainfunding from trading of tantalum, tungsten, tin, gold and their derivatives
produced in the Democratic Republic of the Congo and its neighboring countries.

Activities from ﬁscal 2013 to ﬁscal 2019 and future initiatives

2013

●

2016

Implementation of a survey with a CSR procurement“self-assesment sheet” (a total of approximately 1,930 suppliers)(covering the suppliers that represent 90% of the value of the domestic
procurement excluding that for Sumitomo Wiring Systems, Ltd. andthe listed subsidiaries, as well as suppliers of some of our overseas aﬃliates)●

Continuance of the survey of suppliers (a total of 2,020 companies)(covering the suppliers that represent 90% of the value of the domestic
procurement, as well as suppliers of some of our overseas aﬃliates,
excluding the listed subsidiaries)
●

2019
●

●

2022

●

Started the CSR procurement survey in
Sumitomo Riko Company Limited and Nissin Electric Co., Ltd.

CSR
VOICE

Promotion of CSR procurement covering the suppliers that
represent 90% of the value of our domestic procurement

Groupʼs CSR Activities

2020

On-site inspections and interviews of suppliers to ask for
improvement (86 companies in ﬁscal 2017, 86 companies
in ﬁscal 2018 and 37 companies in ﬁscal 2019)

Partnersʼ Meetings

Business Outline

2017

Establishment and dissemination of
the CSR Procurement Guidelines

Basis for Management●

establish amicable and cooperative relationships with suppliers.
At Partnersʼ Meeting, we also present the CSR Procurement
Guidelines, as well as
the Basic Procurement
Policies, to ask fortheir cooperation andpromote theguidelines actively.

Gradual expansion to include major suppliers of our overseas aﬃliates

Percentage of CSR procurement in the value ofthe domestic procurement in Group companies
By ﬁscal 2020

90%

90%

Sumitomo Riko Company Limited

70%

90%

Nissin Electric Co., Ltd.

48%

90%

Based on a belief that CSR activities form
the basis of a company, we will continue
to work for sustainable growthCore
Category

By ﬁscal 2019

Sumitomo Electric Industries, Ltd.

Ms. Keiko Nishioka President (center)
Mr. Daiki Yasui

We aim to realize the responsible procurement of minerals
with the recognition that it is a serious social issue

Our company combines cutting-edge technologies withtraditional skills of craftspersons to design and produce

special-purpose machine tools (grinding machines), process
cutting tools with high precision and manufacture products,
mainly customized products, in the ﬁeld of ultraﬁne laser

processing. In the history of 74 years since our establishment,
we have had a relationship with the Sumitomo Electric Groupfor more than 50 years through the receipt of orders for theprocessing of cutting tools, as well as the sales of cutting toolsof the IGETALLOYTM brand and our grinding machines. The trust

relationship and stable business relationship with the Sumitomo
Electric Group, which has solid philosophy, also underpin oureﬀorts to work in various ﬁelds. While it is often considered that
CSR activities pose a burden on small and medium-sized ﬁrms,
we value them as the basis of corporate management.
While companies are required to fulﬁll their social

responsibility these days, employees also need to understandthe goals pursued by society and companies including CSR,
ESG and SDGs. To this end, we are committed to humanresource development and try to create a culture where each
employee takes voluntary actions through the organization ofbusiness management classes, mental health seminars andother initiatives. Those eﬀorts have resulted in the recognitionof our company under the 2020 Certiﬁed Health & Productivity
Management Outstanding Organizations Recognition Program(SEM Category) of the Ministry of Economy, Trade and Industryof Japan and Nippon Kenko Kaigi, as well as the selection as
one of the 50 Leading Companies for Women in APEC.

To envisage and design business for the creation of new value,
we set up the Future Strategy Section, which is composed ofEnvironmental
Preservation

young employees with sensitivity to changes of the times, inMay 2020. Under our fundamental policy “Be Professional!,”while continuously working to ensure that the company can

Governance

The Sumitomo Electric Group organizes Partnersʼ Meetings
every year to enhance its relationships with suppliers. We use
this opportunity to explain the outline of our business activities
and the Basic Procurement Policies and commend the suppliers
that have contributed to the business activities of our groupthrough good proposals and support activities in order to

Hikari Kikai Seisakusho Co., Ltd.

Human Resources

Ninety-three suppliers participated in Partnersʼ Meetings

Future Strategy Section, Operation Department (left)

Supply Chain

Organization of Partnersʼ Meetings

Ms. Yuki Maeno

Quality

To meet the target of “Promoting compliance-based
procurement activities,” our group recognizes that the risks
listed in the Organisation for Economic Co-operation andDevelopment (OECD) Due Diligence Guidance Annex II, suchas the issue of conﬂict minerals in Congo and its neighboring
countries and cobalt-related issues including child labor in theworst form, as well as the violation of human rights and labor
issues in conﬂict-aﬀected and high-risk areas (CAHRAs), areserious social issues related to the supply chain. To fulﬁll oursocial responsibility in procurement activities, we aim to realize
responsible procurement of minerals through no procurement
or use of conﬂict minerals involving any of such illegal or
dishonest acts as raw materials. To this end, we also stipulate
the approach to the initiatives in the CSR Procurement
Guidelines and investigate the supply chain on the minerals
involving those illegal or dishonest acts. In the event that theuse of minerals that may cause human rights issues or othersocial problems or serve as a fund for armed groups is found,
we will take measures to avoid their use.
As a speciﬁc initiative, we ask suppliers to cooperate with ourinvestigation mentioned above, which is conducted every year.
In case that there is any concern over the use of minerals, therelevant suppliers are requested to take measures to avoid theuse as we do in the Group.

Manager of Operation Department and Group Leader ofMachine Manufacturing Group, Manufacturing Department No. 1 (right)

Social Contribution

Commitment to Responsible
Procurement of Minerals

grow in a sustainable manner as a place where employees canfeel rewarded and recognize their growth, we will strive to
make social contributions.

CSR Report 2020

44

CSR Core Category

Human Resources

Diversity

CSR Priority Theme

Promotion of Diversity andOccupational Safety

Global HRM Policy

We are actively promoting the establishment of
HR systems and guidelines to be commonly applied
on a global scale within the GroupIn the Sumitomo Electric Group, over 280,000 employees
are working actively in about 40 countries around the world.

Being acutely aware of theimportance of protecting peopleʼs lives,
we will expand the health andproductivity management＊ more actively
Sumitomo has inherited the spirit of “People make the enterprise”
as a tradition and the Sumitomo Electric Group has alsoestablished the idea that employees and their families should bevalued. We announced the Sumitomo Electric Group HealthManagement Declaration in 2015 and started to promote healthand productivity management on a full scale with the launch of“Kenkatsu!” activities in June 2017. As the initial action for the
management, we speciﬁed (1) Prevention and improvement of
metabolic syndrome, (2) Mental healthcare and (3) Contribution
to sports activities as the key items and set KPIs for them.
As the KPI for the initiatives to prevent and improve metabolic
syndrome, we have adopted the metabolic syndrome rate. While
the rate in Sumitomo Electric is still worse than the national
average, we are making various eﬀorts to improve it including theprovision of advice from industrial physicians and training
programs by professional instructors to applicants, and the eﬀorts
have begun to show results. For mental healthcare, we arecommitted to an extensive subject of creating a comfortable

We believe that for Sumitomo Electric to win the global
competition and grow further, it is essential that we fully
mobilize the Group's technologies, products, business models
and all other resources, and we acknowledge that it is mostimportant to secure and utilize highly capable employees
who support the efforts.
The Group has traditionally attached a high value to humanresources based on the Sumitomo Spirit. To clarify the basic
policies on human resources, we instituted the Sumitomo
Electric Group Global Human Resource Management Policy(Global HRM Policy) in September 2011.
This policy specifies the Groupʼs commitment to creation ofan environment that helps employees realize growth andself-actualization through work, provision of various career
opportunities regardless of race, ethnicity, national origin,religion, age, gender, gender identity, sexual orientation, or
disability, promotion of diversity and development of global
leaders, in order to accelerate our global human resource
recruitment and promotion. We have declared the policy toinform people in and outside of the Group about it.

Global Human Resource Management(HRM) Policy●

workplace and promote “Shokuba-dock,” in which the working
environment and the stress on employees are checked toencourage each workplace to consider solutions voluntarily. As tosports, a feature of our commitment is that we aim to make social●

contributions through sports activities mainly with our track andﬁeld team, instead of focusing only on the health management of
employees. In recognition of those eﬀorts, Sumitomo Electric wasselected for the Health and Productivity Stock Selection Program●

for the ﬁrst time in March 2020. Health and productivity
management is essential for the growth of our Group.
We renewed the awareness of the importance of protecting the
lives of employees through our commitment to addressing
COVID-19. In the future, while paying attention to the mechanismof culture and society in each of the countries in the world, we will
promote health and productivity management on a global scale.

●

We provide workplaces where all the employees canwork actively, grow both personally and professionallythrough work, achieve self-actualization, andcontribute to society.
We oﬀer various career opportunities and globally
pursue “the right person in the right position” regardlessof race, ethnicity, national origin, religion, age, gender,
gender identity, sexual orientation, or disability.
We value and promote diversity in the workplacein order to enhance the creativity of the organizationand to sustain the growth of the business.
We develop global leaders who lead and give energy
to our global business. Global leaders arethose who understand and share the Sumitomo Spirit
and the Corporate Principles and can lead highly
diversiﬁed teams.

Global Grade System andGroup Global Executive Personnel System
Takehiro Kazehaya
General Manager,
Sports & Wellness Project
Promotion Office
Personnel Department

We will promote the involvement of SEG Global
Executive and other international employees in thebusiness management
We have adopted the Global Grade System, which is ahuman resource development system that allows talented
and qualiﬁed persons to seek career development beyond
the borders of individual companies to engage in the

management of Group companies in Japan and overseas or
perform even higher duties. We give board members andGlossary ＊Health and productivity management

45 CSR Report 2020

A trademark or registered trademark of Workshop for theManagement of Health on Company and Employee, an NPO

HR database. Business Units use the database to holdlisted companies, the global leader (GL) grade, and recognize

meetings with executives that aim to identify excellent staff

them as SEG Global Executives. At present 43 persons, mostand create development and promotion plans.

of whom are executives of overseas Group companies, arerecognized as the SEG Global Executives. They are provided
with a wide range of career opportunities to help them play

《 Establishment of a human resources infrastructure throughthe application of common human resources measures andprocesses to all Group companies in Japan and overseas 》

Our Group companies conventionally formulated their own《 Area Committee 》

human resources rules，established and operated different

SEG Global Executives to participate in business management

standardize the HR measures and management processes to

We introduced the Area Committee system in 2015 to allow
beyond the borders of individual companies. The system aims
to 1) enhance the presence of each business/base inconsideration of the regional characteristics, 2) make use of3) establish a network of the SEG Global Executives. We have
set up four committees of Americas, Europe, Southeast
Asia/Australia and Greater China, which are committed to awide variety of subjects, such as human resource
development and strengthening of manufacturing abilities in
the respective regions.
We also use the Regional Executive Conference to incorporate

HR measures. We recognized that it is necessary tosome extent among our Group companies in Japan andoverseas in order to further proceed with group-wide andglobal management based on the Global HRM Policy. In fiscal
year 2017, through collaboration on a global scale involving
HR of overseas companies, we started to issue “Global HR
Document,” which clearly states our global HR philosophy,
standards and guidelines on each HR-related topic. We havepublished ten key documents so far. In the future, we will
make steady efforts to implement released documents ateach Group company and also publish documents on
new topics.

Core
Category

the proposals presented by the Area Committees into the
management of the Sumitomo Electric Group. In thisconference, which is held in the four regions of Americas,
executives of Sumitomo Electric and its overseas affiliates

CSR
VOICE

gather every year to discuss global management issues. We
will continue to make the conference more active to further
promote diversity management in the Sumitomo ElectricGroup and coordination between affiliates.

Activities of theSumitomo ElectricMonozukuri Development
Committee Americas

Social Contribution

Europe, Southeast Asia/Australia and Greater China, top

Groupʼs CSR Activities

the knowledge and experience of SEG Global Executives andBusiness Outline

more active roles as global leaders.

Basis for Management

equivalents from overseas subsidiaries, except for those of

Marty Todd

Quality

SEG Global Executive
President
Engineered Sintered Components

Sumitomo Electric Monozukuri Development
Committee was set up in 2011 to promotecollaboration between the US group companies acrosstime of its establishment and remained in the post forthree years. From 2018, I am involved to give advice in
my capacity as an SEG Global Executive liaison.
While its initial objective was to share good practices

Supply Chain

Business Units. I became the vice chairperson at theof the companies for the improvement of《 Encouragement of International Employees to Work in Japan 》

With the aims of providing SEG Global Executives with more
opportunities to demonstrate their abilities and cultivating
the next generation of SEG Global Executives, we will
In 2018, we established guidelines for the procedures fromthe selection of the candidates to acceptance in Japan.
We will continue to make efforts to improve the supporting
program for international employees working in Japan.

To understand human resources of the Group on a global
scale in a seamless manner, as well as to provide various
career opportunities to competent and enthusiastic staff andenhance relationships between the Group companies
and develop leaders for the next generation as well.
The committee organizes training on fact-based root
cause analysis, as well as annual kaizen (improvement)competition between Group companies in the US.
Nowadays, it is committed to group activities involving
shop floor level of the companies while also supporting
the activities to introduce a new Manufacturing
Fundamentals Assessment tool to identify theirstrengths and weaknesses in manufacturing activities
and check the progress of their kaizen (improvement)
activities.

Governance《 Development of a Global HR Database with an aim
to establish processes for development and promotion 》

expanded its activities year by year and now helps

Environmental
Preservationencourage international employees to work in Japan.

manufacturing capabilities, the committee has
Human Resources

Sumitomo Electric Monozukuri Development Committee Americas
5th Kaizen Summit

I find the activities very rewarding and look forward toseeing what the committee can accomplish in the next
10 years.

to cultivate and promote them, we have established a global

CSR Report 2020

46

Womenʼs Empowerment

We strive for Womenʼs empowerment with recognition
that it is one of the driving forces to promote diversity
Sumitomo Electric regards Womenʼs empowerment as oneof the driving forces to promote diversity, and strives for it.
We consider that the development of an environment where
women can fully demonstrate their skills and keep playing

Number and share of women in
section managers or higher positions(Persons)

60

1.3

50
40

32

30
20

helps each employee work more actively. This is therefore asignificant initiative for the future growth and development of

1.5

38

40
28

22

10

important roles will also lead to the cultivation of culture that

1.4

10

0

2014

10

10

2016

No. of section managers

42

38

34

15

12
2017

2.2
2.0
1.8
1.6
1.4
1.2
1.0

58

53

46

（％）

2.1

1.9

1.7

30

2015

as of January 16 of each ﬁscal year

16

2018

2019

(Fiscal year)

No. of general managers

Share of women in section managers or higher positions

our company.

《 Response to the Act on Promotion of WomenʼsParticipation and Advancement in the Workplace 》
In accordance withｔhe Act on Promotion of WomenʼsParticipation and Advancement in the Workplace, we set
targets on recruitment of women and appointment of womenand formulated an action plan in April 2016.
We are currently promoting initiatives to meet the targets inthe action plan for the 3rd phase.

1st phase (note 1)
2nd phase (note 1)(Persons)
140
120
100
80
60
40
20
0

7.8

7.6
71

73

2014

2015

9.1
88

2016

Number of assistant managers

Targets

Womenʼs share in
Recruitthe new graduates
ment
for main career track

Clerical staﬀ:
40% or more
Technical staﬀ:
15% or more

Womenʼs share in
Appoint
assistant managers
ment
or higher positions

Section managers
or higher positions:
1.5% or more
Assistant managers:
10% or more

Womenʼs share in
Recruitthe new graduates
ment
for main career track

Clerical staﬀ:
40% or more
Technical staﬀ:
15% or more

Womenʼs share in
Appoint●
第二期行動計画
assistant managers
ment
or higher positions

Section managers
or higher positions:
2.0% or more
Assistant managers:
13% or more

as of January 16 of each ﬁscal year

11.3

10.3

Results Achievement

42.9％

◯

15.4％

◯

1.7%

◯

10.3％

◯

41.1％

◯

17.7％

◯

2.1%

◯
×

10.6％

(note 2)

(Note 1) 1st phase: from April 1, 2016 to March 31, 2018
2nd phase: from April 1, 2018 to March 31, 2020
(Note 2) Failed to achieve the target mainly due to an increase inmale mid-career employees who became assistant managers（１）Period

2 years from April 1, 2020 to March 31, 2022

（２）Targets■ Targets on recruitment

Increase womenʼs share in the new graduates for main
career track (40% or more for clerical staff and 15% ormore for technical staff)■ Targets on appointment

Increase womenʼs share in section managers or
higher positions to 2.5% or more

Increase womenʼs share in assistant managers to
10% or more

（３）Initiatives（Recruitment）● PR activities mainly targeting female students● Improvement of capabilities to recruit women（Appointment）●●●

47 CSR Report 2020

10.0
8.0
6.0

2017

2018

2019

(Fiscal year)

Share in assistant managers

As of March 31 of 2020
Ratio of Male/Female Employees andRatio of Male/Female Managers in Sumitomo Electric (Note 1)

Male
Full-time
employees
Section managers
or higher positions(Note 2)

FemaleImplementation of measures to support female
employees in their career development

Monitoring of promotion of women in each division

Organization of seminars to assist employees in thebalance between child rearing and work

Review of work styles according to challenges in each
workplace

Total

9,777 persons 1,616 persons（85.8％）（14.2％）

11,393 persons

2,718 persons 58 persons（97.9％）（2.1％）

2,776 persons(Note 1) Above graphs cover data for Sumitomo Electric employees,
including those on loan to Sumitomo Electric aﬃliates and other organizations.
(Note 2) Section managers or higher positions: section managers,
division managers and management

Group employees in the world (Note 1)
Female148,397 persons
52.3％
Total
number offull-time
employees

283,910Male

135,513 persons
47.7％

Female1,717
persons

Total
number of
section managers
or higher positions● Action plan for the 3rd phase

●

12.0

127

125

106

（％）

10.6

(Note) Above graphs cover personnel data for Sumitomo Electric employees,
including those on loan to Sumitomo Electric aﬃliates and other organizations.

● Results of the previous action plans
Category

Number and Share of Women in
Assistant Managers(Note 2)

14,244

12.1％

Male

12,527

persons

87.9％(Note 1) Sumitomo Electric and its consolidated subsidiaries(Note 2) Section managers or higher positions: section managers, division managers
and management (including executive oﬃcers and other oﬃcers)《 Support of Career Development 》

Women are more susceptible to life events and accordingly
tend to have difficulty in imagining their career path.
Therefore, we launched a training program for managers tounderstand the necessity and importance of developing
female subordinates and consider suitable support for thegrowth of each of them in 2016. Furthermore, to help
managers deepen the understanding and take specificactions, the training program is conducted in combination
with “career dialogue training” from 2019.

Commitment to “SWING”

We will support womenʼs empowerment throughcoordination on a group-wide scale
SWING stands for Sumitomo Electric Group WomenʼsInnovative Networking Group, which was launched at theinitiative of Sumitomo Electric, Sumitomo Wiring Systems, Ltd.,
Sumitomo Riko Company Limited and Nissin Electric Co., Ltd.
in 2016. This group provides female employees of theSumitomo Electric Group with opportunities for mutual study

Male

2015

Sumiden Friend has expanded its operations gradually to also
engage in the conversion of drawings and other paper

200
150

4.6

3.0

141

167

177

185

550
110

companies including Sumiden Friend (13 companies in total)
was 2.36% in June 2020.
Number of Employees with Disabilities at Sumiden Friend as ofJune 15 of each year

The disabled

2015

2016

2017

2018

2019

33

39

45

54

56

2020

62
(Persons)

Employment Rate of the Physically or
Mentally Disabled by Year

2.2

440

412

Employment rate as ofJune 15 of each year

2.17

2.17

2.21

2.29

2.29

2.36

Legally required
percentage

2.0
0

2018

2019 (Fiscal year)

196

2015

2016

2017

2018

2019

2020

(Year)(Note) Total for Sumitomo Electric and its qualiﬁed Group companies including Sumiden Friend, Ltd.

In our group, Sumitomo Wiring Systems, Ltd., Sumitomo Riko
（％）

15.0
10.0
5.0
0

213

Company Limited and Nissin Electric Co., Ltd. have alsoestablished their special-purpose subsidiaries, which are SWS
Smile Corporation, SumiRiko Joyful Company Limited andNissin Heartful Friend Co., Ltd., respectively. An exchange
meeting between these subsidiaries was held twice in 2019 tofacilitate their coordination.

Governance100

We will continue to develop a system to create places where500mentally disabled for Sumitomo Electric and its qualified Group

2.3

9.2

2.7

As a result, the overall employment rate of the physically or

Environmental
Preservation

250

2.8

Yokohama, Tokyo and Osaka branches as of June 2020.

2.4

Ratio of Global Employees in the Employees Hired by
Sumitomo Electric
10.3(Persons)

including 62 persons with disabilities, in the five bases including

2.1

326
2017

January 2020, 105 employees are working at the company,

（％）

113

94

2016

employment of persons with physical disabilities. To further

Human Resources

Female2014

Sumitomo Electric has been traditionally working to promote

Supply Chain0

We are making steady efforts to help create a society whereanyone can work vividly with or without their disabilities

waste paper. With the establishment of Nagoya branch in

420

322

Promotion of Employment of the Persons
with Physical or Mental Disabilities

Quality

257(Fiscal year)

Social Contribution

245

100

2019

Core
Category

320
63

2018

documents into electronic files and shredding and recycling of

525
296
51

2017

2009). Beginning with loan and maintenance of foliage plants,(Persons)

200

2016

persons with disabilities in July 2008 (certified in February

Number of Male/Female Employees Hired by
Sumitomo Electric (All Functions)

300

2015

(Note) Ratio of the number of the employees who were hired as new graduates
three years before the relevant year and have left the company within three
years to the total number of the new graduates hired three years before

Sumitomo Electric's Itami Works, specifically for employment of

In fiscal 2019, Sumitomo Electric employed 213 new graduates
for main career track in Japan, 53 of whom were female and
22 were non-Japanese and graduates from overseas
universities (“global” employees). We also hired 167 mid-career
employees. With the awareness of the need for diversificationof human resources, we started to set a target percentage ofglobal employees to the number of newly hired employees in
the activities to recruit new graduates to be employed in fiscal
2017. This fiscal year, we are performing the activities toachieve the target of increasing the percentage to around 10%.
We will continue to take various measures to ensure thatdiverse talents can demonstrate their capabilities regardless ofnationality, race, gender, age or other background in the Group.

381
59

2014

10.1

a special subsidiary＊, Sumiden Friend, Ltd., on the premises of

We aim to promote diversity through recruitment ofa wide range of personnel

400

0

5.0

9.3

disabilities and increase their employment rate, we established

Diversity in Recruitment

500

5.3

5

7.9

promote employment of persons with physical or mental

We were certified as the top L-boshi company
in August 2016. L-boshi is certification grantedby the Ministry of Health, Labour and Welfareof Japan to companies that are outstanding interms of encouraging women to play more
active roles based on the Act of Promotion of WomenʼsParticipation and Advancement in the Workplace.

600

12.4

10

Groupʼs CSR Activities《 Certification with “L-boshi” 》

15Business Outline

Evaluation by External Organizations

Turnover Rate in Sumitomo Electric（%）

Basis for Management

and networking to cultivate female employees and improvetheir skills.
In fiscal 2019, we held a forum for employees on general
track at Tokyo Head Office (held for the first time, attended
by 36 employees from 14 Group companies) and Chubu
District Office (held for three consecutive years, attended by
58 employees from 14 Group companies), in which many
employees had requested the forum to be held. With thetheme of “Letʼs make yourself who can contribute to theteam and show a talent!,” the forum included a panel
discussion by a representative from each of Sumitomo
Electric, Sumitomo Wiring Systems, Ltd. and Sumitomo RikoCompany Limited as well as a group discussion and group
work. Such an exchange with female workers from othercompanies gave the participants an opportunity to consider
what they can do for their teams and other issues.

4

2014

5

2015

8

2016

5

2017

New graduates for main career track
Ratio of global employees

18

2018

22

2019

persons with disabilities can work while feeling rewarded in(Fiscal year)

Global employees among them

(Note) Employees who were hired in months other than April are included.

many Group companies and worksites and to ensure that all
Group companies will achieve and maintain the legally required
percentage in response to legal revisions and other changes.

Glossary ＊Special-purpose subsidiary

The subsidiary is established by a company for the purpose of hiring persons with disabilities under the Law for Employment Promotion etc. of the Disabled.
Permission from the national government is required for the establishment. Persons with disabilities employed by a special-purpose subsidiary can be considered
to be the parent companyʼs (or corporate groupʼs) employees when the percentage of the employment rate of persons with disabilities is calculated.

CSR Report 202048

Safe and Sound Workplace
Work Style Reforms

Sumitomo Electric promotes company-wide campaigns withthe aim of ensuring that employees can achieve the properbalance between work and life in order to createa workplace that allows diverse staff to work comfortably
We have conducted various initiatives for work style reforms
since 2008, including the promotion of work styles thatbalance work and life and the review of the operations of eachdivision to improve the efficiency. At present, we conduct bothcompany-wide and division-specific initiatives to review work
styles and thereby reduce total annual working hours,
encourage employees to take paid holidays and improve work
efficiency and productivity.
In April 2020, we plan to introduce a “work-interval system,”
which aims to ensure that employees have a sufficient amountof rest from the finish time of a day to the start time of thefollowing business day, on a trial basis. Through this initiative,
we will strive to maintain the health of employees and alsosustain and further improve productivity.
We are taking measures in response to the issues of individual
workplaces and persons identified based on findings in theSurvey to Create a Lively Working Environment, a questionnaire
survey to investigate the awareness of employees, with an aim
to make the workplaces more attractive.
We now conduct initiatives from various perspectives including
efforts to change the corporate culture and awareness, as wellas enhancement of productivity through the use of
infrastructure and IT tools and the review of work rules andprocesses. We will continue to review the work styles, which
will not only reduce working hours but also contribute to themaintenance and improvement of business performance, forthe growth of our business.
Average Overtime Hours and Average Number ofPaid Holidays Taken by Employees by Year
Year

2015

2016

2017

2018

2019

Average overtime
hours per month

20.4

20.8

20.2

19.3

18.7

17.5

Average number ofpaid holidays taken by
employees per year

12.1

12.1

14.1

16.0

16.5

16.9

days

hours

days

hours

days

hours

days

hours
days

hours
days

(Note) Average among labor union members of Sumitomo Electric from January
to December in each year

Average Total Working Hours by Year

(Hours)

2,100
2,050

2,042

2,047

2,024

2,000

1,999

1,988

1,970

1,950
0

2014

2015

2016

2017

2018

2019

(Year)(Note) Average of the total working hours in each year from January to Decemberof each of the Sumitomo Electric employees (including those on loan to
Sumitomo Electric aﬃliates and other organizations within the Works)

Implementation of the Survey toCreate a Lively Working Environment

We have added questions about progress inthe dissemination of the mid-term management plan,
as well as questions about harassment, for
the understanding of the current situation of each workplace
Sumitomo Electric has been conducting Survey to Create a
Lively Working Environment, a questionnaire survey toinvestigate the awareness of employees, since fiscal 2006.
In fiscal 2019 as well, about 20,000 employees of Sumitomo

Glossary ＊Special certiﬁcation mark “Platinum Kurumin”

49 CSR Report 2020

Results of the Survey to Create a Lively Working Environment
3.64

Dissemination ofBusiness Spirit andCorporate Principles

3.61

Manager'sManagement

3.98

Workplace Discipline

3.27

Workplace
Atmosphere

3.47

Devotion to Job

3.24

Motivation

3.40

Communicationin the workplace

FY2019FY2018FY2017

3.57

Satisfaction in
Working

0

Bad

2

3

4

5-grade scale

5

Good

Support for Balancing Work and Life

2014
hours

Electric and Group companies were surveyed.
The content of the survey is reviewed every year. While theresults for most of the items checked for the change over time
showed improvement, there were still issues to be addressedin some areas including “Career Development” and we havedesigned and implemented personnel measures or training to
respond to them. In addition, we started to analyze thecorrelation between the survey results and the results of thestress check, which measures the stress level of individuals, infiscal 2018. The overall results are fed back directly to the
responsible person in each organization to encourage each
workplace to consider specific measures against the issues andto use the results for the establishment of workplaces where
people can work in a healthy and energetic manner.

We actively promote the development ofchild and family-care related systems

To support employees in balancing work and life, Sumitomo
Electric is committed to promoting the work style that achieves
the proper balance between work and life and has also
developed child and family-care related systems actively. For
these efforts, the Company has been certified by the Ministry of
Health, Labor and Welfare as a company that helps its employees
balance work and childcare based on the Act on Advancement of
Measures to Support Raising Next-Generation Children.
In fiscal 2018, we newly allowed employees to use the work fromhome arrangements for other purposes than child rearing andnursing care and also introduced a system of paid holidays thatcan be taken by the hour so that employees can work in a more
flexible manner. We also use training sessions and in-housemagazines on nursing care to give relevant
information and encourage them to prepare forthe achievement of a balance between nursing
care and work. Through these measures, we
are working to help employees balance workand life now and in the future.
Special certiﬁcation mark"Platinum Kurumin"＊

Various Types of Support

We support the life of each employee invarious aspects《 Reemployment System 》

In April 2008, Sumitomo Electric introduced a scheme toreemploy employees resigning due to circumstances beyond
their control such as childbirth, childcare and nursing care.
In the scheme, we organize interviews and reemploy eligible

The Minister of Health, Labour and Welfare granted this mark to Sumitomo Electric for achieving the goals set under its First Action Plan(from April 2005) to Sixth Action Plan (to March 2018) based on the Act on Advancement of Measures to Support Raising Next-Generation
Children, as well as for meeting the certiﬁcation criteria for special cases set by the Ministry of Health, Labour and Welfare.

resignation) and, as a general rule, assign them to theirformer workplaces.

《 System to take a leave to accompany his/her spouse
who is assigned overseas 》

styles. We will continue to work to enhance the flexibility ofworking styles and develop an environment where diverse
human resources can play more active roles.

《 Volunteer Holiday System 》

Employees can take up to 10 holidays in a year to engage involunteer activities approved by the Company. This system isused for various social contribution activities such as coachingof local children in sports activities and accompanying ofchildren on trips for residential training and games.

《 Childbirth and Rearing Support Program 》《 International Employees Support Project 》

While encouraging employees to make active use of
teleworking, flex work and staggered working hours systems,
we offered skill development programs that can be learned
at home (such as e-learning) and took other initiatives
including provision of special (temporary) leave to address
the temporary closure of elementary schools, etc. andtemporary suspension of business in consideration of
infection control measures and the situation of operation.

Development of a work environment where employeesof diverse nationalities, religions and cultures are
Wong Tsz Yu
HR Group, Osaka Works
understood and respected

Governance

CSR Report 2020

Environmental
Preservation

I joined Sumitomo Electric as a new graduate recruited overseas in April 2018 and was assigned to HR
Group of Osaka Works in July of the same year. While my current main job is to support the divisions,
I am in charge of wide-ranging tasks in training and other personnel-related areas.
Although I felt anxious about working in Japanese initially after joining the company, I took an internal
Prayer roomtraining program to learn Japanese and also learned reporting and presentation skills in the program,which have helped me work effectively. In response to ongoing globalization within the company,
personnel initiatives to address it, such as the launch of the international employee support project, have been promoted.
In addition to the recruitment of international employees like me, Sumitomo Electric actively accepts interns from overseas universities.
When interns were accepted in Osaka Works, prayer rooms were created and the halal menu was introduced at the cafeterias outof consideration for their religions. The halal is offered at reasonable prices as with other food. The international interns who ate
halal were very pleased. I am so glad for the expansion of such support and, as a personnel staff member, would like to improve theenvironment and personnel systems to ensure that people can play an active role irrespective of nationality, religion or values.

Human Resources

CSR
VOICE

《 Response to the COVID-19 pandemic 》

Supply Chain

We introduced work from home arrangements, which allows
employees who face restrictions on their work due tochildcare, nursing care, etc. to work at home or other locations
in fiscal 2016. On October 16, 2018, we started to allow other
employees who meet specific requirements, such as abilities
to autonomously fulfill duties and make achievements, to use
the system. The purposes of the expansion of the system
include the realization of flexible and efficient work styles andthe improvement of productivity through the review of work

Quality《 Work from Home Arrangements 》

To create a work environment where international
employees can work comfortably, we set up a project teamin the HR Division in 2017. The team has taken various
measures to support them, including the establishment of a
support desk where staff can give support in Japanese,
English and Chinese, development of bilingual systems(Japanese and English) for time & attendance management,
business trip transportation expenses and other items,
issuance of pay slips and internal regulations in English,
creation of prayer rooms in Osaka Head Office and Osaka
Works and training sessions to become familiar to thebusiness culture in Japan.

Social Contribution

In the activities to find childcare facilities to take care ofchildren ( hokatsu in Japanese), various kinds of know-how
are needed because the approach and schedule of suchactivities depend on the childcare environment in the placeof residence and the month of birth of the children.
This Hokatsu Concierge system, which was started in
November 2014, aims to help employees during childcare
leave return to work smoothly at the time she hopes toreturn. Know-how on hokatsu depending on thecircumstances of individual employees, as well as information
on childcare facilities, is provided in this system.

Core
Category《 Hokatsu Concierge System 》

Groupʼs CSR Activities

As a measure to foster a supportive environment for
employees working full-time while raising children, Sumitomo
Electric opened childcare centers at its Yokohama and Osaka
Works in March and April 2008 respectively and Itami Worksin March 2009. In 2018, a new childcare center was
established in the neighborhood of our Tokyo Head Office.
As of March 31, 2020, these centers take care of 56 children
in total.
In addition, for employees who cannot use our childcare
centers, we are taking other supportive measures such as
subsidizing their use of other childcare centers.

For female workers during pregnancy and parenting, it isespecially important to have dialogue with their superiors in a
detailed manner.
In fiscal 2015, we introduced a system to organize dialogue
between such an employee and her superior when she isfound pregnant, one month before maternity leave, before
return to work from childcare leave and two months after
return to work from childcare leave, to help her return towork smoothly and work actively after the return fromchildcare leave. In fiscal 2019, the system was revised to alsoorganize such dialogue six months after the return fromchildcare leave to encourage dialogue with focus on her
career path.

《 Childcare Centers 》

Business Outline

In April 2017, we introduced a system in which an employee
can take a leave of absence to accompany his/her spouse
who is assigned overseas and return to work after the leave.
This system allows temporary retirement in such a situation
with the aim of preventing employees from retiring.

Basis for Management

persons when they are able to return to work (within three
years or, for those who moved overseas, five years from their

50

Sumitomo Electric Group
Health Management Declaration
We are working to realize“health and productivity management”

We consider that the Sumitomo Electric Group cannot achievesustainable development or growth without the health of each
employee. We announced the Sumitomo Electric Group HealthManagement Declaration in 2015. Based on the declaration,
we launched activities in 2017 under the title of “Kenkatsu!,”＊with focus on the prevention and improvement of metabolic
syndrome, development of exercise habits and mental
healthcare, and now continue to develop the activities.

《 Initiatives to Prevent and Improve Metabolic Syndrome 》
In Sumitomo Electric, the percentage of employees who havemetabolic syndrome was 36%, which was higher than thenational average, when the initiatives were introduced in 2017.
Since then, we have worked for the prevention andimprovement of metabolic syndrome while also using theknowledge owned by industrial physicians and health nurses toimprove the lifestyle of employees.

Improvementof thelifestyleEnhancementof special
healthguidance
Measuresto prevent
passivesmoking

Lifestyle improvement incentive program

Program to give incentives according to the level ofachievement of the targets set on several items
including daily exercise, dietary life and drinking: Joinedby 2,400 persons

3-month intensive lifestyle improvement programby health nurses of Sumitomo Electric and sports
trainers: Joined by 140 persons

The participants reduced their weight by 5.6 kg, abdominal
girth by 5.5 cm and body fat by 3.7% on average

Ban on smoking during oﬃce hours (to be enforcedby the end of ﬁscal 2021) and start of a program to
subsidize costs for treatment to quit smoking

We also organized seminars on the prevention of cancers,
dietary life, exercise habits and other subjects. As a result of
our efforts to enhance the awareness of health through theinitiatives for all employees, the percentage of employees who
have metabolic syndrome has declined to 31.3%.
Percentage of employees aged 40 orover who have metabolic syndrome
（％）

36

36

34.6

34

32.1

32
30
28
26

31.3

Target value:

30%

National average:
26.6%
2016 2017 2018 2019 2020 2021 2022 (Fiscal year)《 Contribution to Sports Activities 》

We are committed to the development of exercise habits andencouragement of communication through sports, along withlocal contribution mainly through track and field sports.
Athletic exchange meeting by Sumitomo Electric
Track and Field Team and former team members
Sportslessons

Internal
sportseventsAthletic exchange meeting: Joined by 107 persons
including employees, their families and local people
Athletic lessons for elementary school and junior highschool students in Itami City (held 17 times in total):
Joined by 3,093 persons

SEI Challenge Cup (relay marathon, tennis, etc.):
Joined by 1,200 employees
Walking event: Joined by about 2,400 persons

Glossary ＊ Kenkatsu!

51 CSR Report 2020

In addition, we have developed
welfare programs such as subsidy
for costs on fitness gyms. We thus
support the establishment of anenvironment to encourage 2,500
employees and their families toengage in sports on a daily basis.

《 Mental Healthcare 》

We provide “self-care” training as well as “care by supervisor”
training mainly for management-level employees in workplaces
with high stress. Also, we continue to implement the working
environment improvement activities based on the results ofstress level tests, which were launched in fiscal 2018, to createa more comfortable workplace.

《 External Assessment 》●

Selection as a 2020 Health andProductivity Stock:

Sumitomo Electric was selected as a Health andProductivity Stock by the Ministry of Economy,
Trade and Industry of Japan and Nippon Kenko
Kaigi in March 2020.
●

Recognition as a Sports Yell Company:

We were recognized as a Sports Yell Company
by the Japan Sports Agency in December 2019.

Labor- Management RelationshipThe union and management are committed tosolving various problems through in-depth discussions
Sumitomo Electric believes that the development of a company
goes hand-in-hand with the well-being of its workersʼ union
members. On the basis of this belief, Sumitomo Electric strives
to address various relevant issues by thorough discussion
between the union and management, each party respecting
the otherʼs standpoint. In particular, the Central Management
Council Meeting, which is held four times a year, has a history of
about 70 years, and has served as a forum for exchange of
opinions between representatives of the union and management
concerning business environments and managing conditions.
While working styles are increasingly diversified, we have also set
up expert committees of various kinds to create an environment
where all employees can work lively with smiles by improving
various working systems and reinforcing monitoring functions.

Organization of Town Meetings

We provide employees with opportunities to havedirect dialogue with executives and make use of
their opinions to facilitate various initiatives
To enhance communication inside the Company, we organize
town meetings at each of our sites, in which a group of
employees from different sections directly and openly talk withboard members, general managers or other executives. The
participants have precious opportunities to inform theexecutives of problems and requests concerning humanresource development, promotion of diversity and work stylereforms, as well as those specific to their functions, and sharesuch problems to seek clues and solve them. Specifically, weorganized position-based town meetings, as well as town
meetings for international employees and mid-career workers,
in fiscal 2019. The opinions and other comments presented in
the meetings are communicated to the relevant divisions on atimely basis and used for organizational operation, planning of
personnel systems and other purposes, as well as for thefacilitation of the initiative.

A coined term used in Sumitomo Electric to collectively refer to health maintenance and improvement activities promoted in companies andworksites and by individuals to extend healthy life expectancy and develop a sense of unity in worksites. The three key activities are“prevention and improvement of metabolic syndrome,” “promotion of sports and improvement of exercise habits” and “mental healthcare.”Human Resources Development

Personnel needed by Sumitomo Electric are defined as those
who honor the Sumitomo Spirit, understand the Sumitomo

Electric Group Corporate Principles, possess high levels of skill
and knowledge rooted firmly in the basics, and who can play

Japan and overseas. For the employees to be assigned

overseas, a preliminary training program to ensure that they

can convey the Sumitomo Spirit in their own words in their
new workplaces is organized before the transfer. We are also
cultivating internal lecturers to enable the Sumitomo Spirit tobe learned periodically in Group companies in Japan andabroad.

personnel based on the concepts of the individual employeesʼ

《 Global Common Knowledge (GCK) Project 》

coaching and close communication between superiors andincreasingly important to improve the competence ofstrong motivation for self-development and on-the-job

In the rapidly changing business environment, while it is getting

subordinates.

employees, the items to be thoroughly learned by employees

Business Outline

active roles in the global community. We provide various

training programs to support employees in becoming such

Basis for Management

Personnel Needed by Sumitomo Electric

for the strengthening of corporate governance have been
diversified. In this context, it was necessary to organize and

SEI University

cultivated since the establishment of the SEI University to clarify
the content that should be thoroughly learned on a global scale.

SEI University represents the Sumitomo Electric Groupʼscomprehensive training and education system. With the aims ofachieving corporate targets and becoming a Glorious Excellent
Company, we provide various training programs in a wide
range of areas at SEI University.

It was also important to show a foothold for our Group
companies in Japan and overseas to improve theirunderstanding of the training programs to be introduced in
response to their respective situations and challenges morethan ever and prioritize the programs. With this recognition,

Fundamental Principles of SEI University
SEI University will serve as a venue for:② Sharing the Sumitomo Electric Groupʼs management strategies
and vision, and③ Developing employeesʼ abilities, skills and knowledge so thatthey may play active roles in the global community.

be learned by employees in accordance with their positions as
Global Common Knowledge (GCK) in fiscal 2019. From fiscal
2020, toward the final fiscal year of VISION 2022, Sumitomo
Electric will develop content based on the GCK and provide
them worldwide. Group companies will be committed tohuman resource development while also using external
programs suitable for the companies and countries/regions.
At the same time, we aim to ensure that the GCK supports
each of the employees as a guide for personal enlightenment.
Concept of the Global Common Knowledge (GCK)SEI University（OFF-JT）

Management By
Objectives
Dialogue on Career

Professional
abilities

OJT

employees to perform their duties. We give them

opportunities to learn about it in the training programs for
new employees and various position-based training
programs. In addition, we always explain the relations of the

Furthermore, the president asks all employees to performtheir duties in accordance with the Sumitomo Spirit via a
video once in six months and the video is also translated into
multiple languages and distributed to Group companies inTraining categories of the SEI University
Basic

Practical
Human skills

Problem-solving
skillsTechnical skills

Corporate
Principles
Action principles

Management

Businessmanagement
Innovation

Manufacturing

Compliance
Safety andthe environment

Human skills

Problem-solving

Business

Respect
for human
resources

Long-range
planning

Attachingimportance totechnology

Banji-nissei
Shinyo-kakujitsu
Fusu-furi

Governance

Sumitomo Spirit to compliance and human rights in therelevant training programs.

knowledge
and skills

Scope ofthe GCK

Environmental
Preservation

original training programs in the field of technical skills tohave the trainees acquire the unique knowledge and skills
especially required in the respective workplaces.
In particular, the Sumitomo Spirit is positioned as the basis foractions

Leadership
Attribute

Managers

Our Group companies and divisions also organize their①

The Sumitomo
Spirit②③
Corporate
Required Principles Common

Human Resources(commonly developed across the Group), including
position-based compulsory programs for all group employees
ranging from executives to new employees, in the three areasof human skills, problem-solving skills and technical skills.

Humanresources
base

Staﬀ

SEI University provides more than 300 training programs

Expertiseand skills

Supply Chain

The Sumitomo Spirit
Corporate philosophy

Quality

Human Resources
Development

Social Contribution① Disseminating the Sumitomo Electric Groupʼs corporate philosophy,

past and reorganized and systematically presented the items toCoreCategory

we took an overview of the training programs provided in the

Employee
performance evaluation
Job rotation

Groupʼs CSR Activities

integrate the training programs and know-how that have been

We work to improve the value ofhuman resources throughout the Group

Mutual Prosperity,
Respect for the Public GoodCSR Report 202052

Record of the training sessions organized acrossthe Sumitomo Electric Group in FY2019

companies in Japan with opportunities to attend training

Total number ofparticipants (persons)Total length oftraining(hours)Sumitomo Electric employees

56,066400,491

Employees ofGroup companies in Japan

21,406

91,047

Employees ofoverseas Group companies

14,081

63,560Total

91,553555,098

Applicable employees

Record of unique training sessions organized inindividual Group companies in FY2019
Total length oftraining(hours)32,901

171,665

Overseas Group companies(88 companies)

192,798

573,768

Total

225,699

745,433

Domestic Group companies(22 companies)

participants from our Group companies in Japan in the training
for new employees, mid-career employees and newly
promoted personnel is increasing year by year.

When it is difficult for a Group company to run training

programs, internal lecturers are delegated from Sumitomo
Electric to provide necessary training and other services.

② Development on a global scale

To promote the development of human resources that meet

Total number ofparticipants (persons)Applicable employees

sessions organized by Sumitomo Electric. The number of thelocal demand, HR manager meetings are held regularly on acountry basis to discuss the planning and operation of various
training programs with focus on those for general employees.

In addition, persons in charge of HR development in our Group
companies across the world are invited to Japan once a year
to hold the Global Human Resources Development Meetingand discuss the development system commonly applied on a

Promotion of Dialogue on Career
We help employees consider their career andbe committed to their growth

global scale.

We also organize the following training programs for

management personnel commonly in Japan and overseas.
Target： Executives

For employees to grow, they have to design their career visions

Executive training program

based on their own values and ways of life and strive to realize

Executives are developed through action learning as wellas understanding of the Sumitomo Spirit and acquisition ofmanagement knowledge. This training program is held
once a year and attended by about 50 persons each time.

them. They can improve their abilities by actively engaging in
self-development and using the abilities developed throughon-the-job training to do more challenging jobs. Sumitomo

Electric, which aims to establish a win-win relationship where

the improvement of necessary skills by the employees throughTarget： General Managers

company, supports employees for the purpose.

Global Leadership Development Program (GLP)

their jobs also results in the growth and development of the

Human resources that can show leadership on a global scale
are cultivated through discourses of executives, leadershipworkshops and understanding of the Sumitomo Spirit. The
program was held twice a year until 2015 and is held once a
year from 2016. Each session receives about 30 participants.

We have conventionally operated a system that has superiors
have dialogue with their subordinates to support their careerdevelopment when annual business targets are set, and also
continue to organize training that helps understand theimportance of the dialogue and specific methods to promote it.
In the training session for superiors, they learn (1) the necessity

Target： Managers

dialogue, as basic knowledge. After understanding the

SEG Management Program based on
the Sumitomo Spirit (MPSS)of dialogue on career and (2) specific methods to promote

importance of motivating subordinates to work and attachingThis program aims to diﬀuse the Sumitomo Spirit andimprove skills to manage subordinates. The sessions areprovided in six cities in Germany, the United States,
Singapore, China (Shanghai and Shenzhen) and Mexico anda total of approximately 150 persons attend the common
program in those locations in a year.

meanings to their jobs in (1) and learning the development of
an atmosphere for dialogue, attentive listening for receiving

empathy and how to ask questions in (2), the superiors deepen
their understanding by watching a video of real interviews andexchanging opinions on good and bad points in the video witheach other. We also provide them with opportunities toexchange information on the problems they individually face sothat they acquire skills and knowledge that can be used in

The Number of Participants in MPSS (cumulative total)

dialogue with subordinates.

(persons)

consider their career while encouraging them to share the800

For subordinates, we offer training sessions and tools tocareer they envisage with the superiors through the dialogue.

We also provide training to newly promoted management staff
and employees who have reached the age of 45 or 50 toprompt them to reflect on their own careers and examine what
are their strengths, what in the job was interesting for themand why. The participants also consider their future career
through group discussions in the training.

Addressing Globalization across the GroupWe develop training activities globally across the Group① Development in Group companies in JapanTo promote human resources development across theSumitomo Electric Group, we provide employees of our Group53 CSR Report 2020

1,000

923
784
621

600

448

400
200
0

285
142
2014

2015

2016

2017

2018

2019

(Fiscal year)③ Response to globalization in the Company

In line with progress in the globalization of our businessactivities, international employees working in Japan are also

increasing year by year. To develop an environment where all
employees can play an active role beyond differences inlanguage, culture or value, we enhance our Japanese

language training program for international employees andas part of the project to support them. We also give training

for workplaces to ensure that those who receive international
employees can properly understand the issues to be noted.

CSR
VOICE

Scott Parker

President and CEO
Sumitomo Electric Device Innovations,
U.S.A., Inc.

I participated in the executive training program for fiscal
executive.

In the activities for action learning, which was part of the

training program, I formed a small team with participantsfrom other Business Units and cooperated to develop abusiness plan on the given subject. Later, we had an

opportunity to propose the plan to top management

including the chairman and the president of Sumitomo
Our team had discussions to develop the plan every week
for six months. In the intermediate reporting session forreceived very useful instructions for the final presentation.

Since our team was composed of American and Japanese
members, I learned how to complete a project beyond
differences in culture, language and time zone.

At the same time, I spent a lot of happy time with othermembers and made good friends from different divisions.
along with the business spirit cultivated by it.

It was a particularly precious opportunity to visit anddirectly see the Besshi copper mine. The history of thebusiness reform of the Besshi copper mine and restoration(equivalent to the manager of a manufacturing section) who
will play a pivotal role in manufacturing. In the program,assistant plant managers learn the concepts and knowledge
essential for plant managers in a six-day training course andthen have an opportunity to deepen their understanding
through practical operations. In the meantime, to create“strong” plants, those who are appointed as plant managers
participate in a two-day training course and a designatedworkshop that is held once in three months. We plan todevelop 20 to 30 plant managers or so every year through thisprogram and also use it to cultivate general managers ofoverseas manufacturing divisions in the future.

CSR
VOICE

Program to develop
plant managers

Improvement of
the potential
power of the plantthe fact that Sumitomo has been committed to the

Yasuhiko Ura

through concentration of resources on them, as well as
development of the local communities where it conducts
business throughout its long history.

In the special lecture organized in a temple in Kyoto, I

learned the values underlying the Sumitomo Spirit such as
Respect for the Public Good” more deeply.

I thank Sumitomo Electric for making a vast investment for
my growth as a manager.

Manager of Hybrid Plant, Manufacturing Department
Hybrid Products Division

I participated in assistant plant manager training and plant
manager training, and also attended a plant manager
workshop three times. In the training, I acquired

knowledge for plant managers and had an exchange withother plant managers. Meanwhile, I feel that theseworkshops allowed me to learn new ways of thinking andseeing things and expand my horizon as a plant manager
through the inspection of other plants.

Based on the basic concept that manufacturing ishuman resources development, we promote cultivationof manufacturing personnel through the three main
initiatives of ① basic training on manufacturing,② practical training and ③ small group activities

make it stronger, namely change point control,

abnormality control and standards compliance control. In

fiscal 2020, we will review our approach for strengthening

management by reference to the methods implemented inother plants to enable our plant to produce outcomes.
These activities are expected to reduce the waste anddefective goods generated in the plant, as well as energy

Governance

The underlying concept of the basic training on manufacturing
is to learn with actual machines and products. Subjects in the
curriculum are wide-ranging from SEQCDD, which are essential
for manufacturing, to the Groupʼs proprietary technologies andtechniques and the latest technologies including equipment

My plant is committed to 3 points control of quality toEnvironmental
Preservation

Cultivation of Manufacturing Personnel

Human Resources“Shinyo-kakujitsu,” “Fusu-furi” and “Mutual Prosperity,

Supply Chain

Sumitomo, which has completed large-scale projectsof it by planting trees demonstrated the competence of

QualityIn the training, I also learned the long history of Sumitomo

This program aims to develop “strong” plant managers

Social Contribution

managing executive officers of Sumitomo Electric, we《 Program to develop plant managers 》

CoreCategory

Electric.

Groupʼs CSR Activities

2019 and it was one of the highlights in my career as an

Business Outline

I attended the executive
training program

control and maintenance technologies. The curriculum of the
training program for new employees is enhanced continuously
by incorporating advanced technologies as well. The number ofparticipants is also growing every year. Overseas as well, we
regularly provide training on basic knowledge and themaintenance of equipment in China and Southeast Asia.
The practical professional training is given in programs that aim
to cultivate key personnel who are anticipated to drive
manufacturing innovation and reinforce the SEQCDD
competitiveness. Important challenges of the respective
divisions are selected as the themes, and trainees are assigned
to the divisions of their themes to perform practical activities
for the solution of the challenges and problems.
The small group activities (called “SGA”) are developed andpromoted on a global scale to solve problems and achieve
objectives voluntarily on a workplace basis with the aims ofdeveloping human resources, energizing the workplace andhelping improve the performance.
Among these three key activities, we placed particularemphasis on the following initiatives in fiscal 2019.

Basis for Management

provide them with training on the business culture in Japan

consumption.

We will promote the reduction of environmental impact
through efforts to make the plant stronger.

CSR Report 2020

54

To Be the Safest Company in the World
Basic Approaches
The Sumitomo Electric Group considers that securing of healthand safety of employees is the basis of the business.
We promote the establishment of culture to prioritize safety
above all else and continuously perform safety and healthactivities involving all employees to eliminate risk factors fromour workplaces with the aim of becoming the worldʼs safest
company.
Specifically, having formulated “Safety Philosophy,” “Principles
of Safety Activities” and “Occupational Safety & Health
Guidelines,” we specify priority activities and subjects for eachfiscal year to meet the targets at the Health and Safety
Committee, which is composed of members from management
and the union.

Safety Philosophy●●

Safety is our top priority.
All accidents can be prevented.

Principles of Safety Activities

1．Top managements of business sites and organizations
shall act tolead by example of themselves in
improvement of the safety culture.
2．Mutually enlighten safety consciousness throughbidirectional communication.
3．All members shall act to aim a global top safe enterprise.

Occupational Safety & Health Guidelines
We, Sumitomo Electric Group, raise “Safety is our top priority”
in group wide, and, aim comfortable workplaces able to workin safe and ease, by belief of top management and eﬀorts ofindividuals in the group, under the basic spirit of “Respect for
Humanity”.
We establish and enforce following guidelines, and actively
endeavor to improve the occupational safety and health.

1．
By eliminating every hazardous and harmful elements fromthe workplace, aim to be a top enterprise of “Zero
Accidents, Zero Dangers”.
2．
Comply company rules, as well as, regal regulations andother safety requirements.
3．
By conducting safety & health education and training,enhance the sensitivity and knowledge.
4．
Achieve work environment able to work comfortably inhealth in both mental and physical aspects.

Fostering Safety Culture

Safety Philosophy and Principles of Safety Activities
have been formulated to foster the culture of safety
In fiscal 2019, we established Safety Philosophy and Principles
of Safety Activities to clearly define the rules that have
conventionally been followed as unwritten rules. We now
promote activities based on them.
The first item of Principles of Safety Activities stipulates that
executives in a position equivalent to or higher than a generalmanager or the president of an affiliate declare action targets
as “safety actions of top management” and demonstrate theactions to develop the safety mind of employees. This initiative
was launched this fiscal year.
The second item mentions that all plant managers acquire skills
for dialogue-based safety patrol in group training and practicedialogue with workers on a daily basis to eradicate unsafe
action of workers and share and improve difficult operations
that can cause unsafe actions.
The third item intends to activate the S-T-O-P accident
campaign＊ and other initiatives involving all employees. In the
future, we will design activities involving all employees inaccordance with the characteristics of each division and aims
to be the safest company in the world.

Safety Measures in Facilities《 Safety! Power OFF Activity 》

In the “Power OFF Activity,” we identify the risks of directly
touching or approaching any rotating or moving parts and thenpromote equipment safety measures (hardware-related
measures) to address them. We manage the identified risks
based on a company-wide registration system in domestic sites
to establish hardware-related measures against them and have
implemented such measures for about 1,500 operations as ofthe end of March 2020. For problems that cannot be solved
with existing techniques/solutions/methods/strategies andrequire the development of new ones, the division in charge
will work with the Manufacturing Management & Engineering
Unit to be committed to completing them.

《 Prevention of serious accidents involving forklifts 》

We are promoting the enhancement of measures to separate
forklifts from people to prevent serious accidents.

Targets and Results in Fiscal 2019
Targets for FY2019

SafetyVISION 2022
①Safetymeasuresin facilities②Developmentof human
resources
with highsafetyawareness③Fosteringsafety culture● Action items for FY2019● Action items for FY2019● Activities to be conducted continuously● Activities to be conducted continuously①-1 Acceleration and completion of
hardware-related measures①-2 Safety measures for forklifts and cranes②-1 Development of awareness training
using CG to reproduce disasters②-2 Start of repetitive training for technical staﬀ③-1 Promotion of commitment of generalmanagers and higher positions③-2 Training for dialogue-based inspections:
All plant managers → Practicewith the participation of all employees
Recognition of problems by top management
S-T-O-P accident campaign
Activities to comply with rules and standards● Group-wide structural reinforcement activities

Emergency safety management andpriority safety management activities
Plant disaster prevention
Global safety diagnosis
Strengthening of group-wide
sharing of best practices

Glossary ＊S-T-O-P Accident Campaign

55 CSR Report 2020

Results in FY2019

This slogan represents basic rules to be followed while walking. S: Do
not take a ｓhort cut and watch your step; T: Do notｔext orｔalk on thephone while walking; O: Hold on to the handrails when using stairs;
and P: Do not put your hands in your pocket while walking① Identiﬁcation of the risks of directly touching or approaching any rotating or
moving parts → Implementation of hardware-related measures: Completed
1,458 items (68%)① Promotion of the separation of vehicles from people② Enhancement of discussion-based training using CG to reproduce disasters② Full-scale implementation of repetitive training: Provided the training to762 persons (94% of the employees who need to receive it)③ Promotion of the commitment of general managers and higher positions③ Dialogue-based inspections: Conducted for all plant managers

with the participation of all employees

Full-scale development of the S-T-O-P accident campaign(4 Works and Osaka and Tokyo Head Oﬃces)● Group-wide structural reinforcement activities

Emergency safety management and priority safety management activities:
Continuous implementation
Plant disaster prevention: Continuous supervision of construction work
Global safety diagnosis: Started the third round
Strengthening of group-wide sharing of best practices:
Started the consideration of TRAP＊ analysis＊TRAP analysis

TRAP is an abbreviation of Trap Avoiding Program (a phrase coined by Sumitomo Electric). TRAP analysis
aims to prevent the occurrence and recurrence of work-related accidents based on the theory of failure
studies, “I thought that I was taking the right action but it caused an unfavorable result against my will (dueto an unexpected trap). I will identify the trap and consider it for prevention in the future.”Protect your life by yourself

2.Dialogue-based education to experience danger(to not only experience the fear but also identify your own
experience with the actual accidents)

Accidents involving injuries
Sumitomo Electric Group

3.CG to reproduce disasters + discussion and presentation(to consider the causes of the accidents and how they
could have been prevented)

Japan

Overseas

Accidents
resultingin lost work
time

1

2

2

0

3

8

1.Repetitive training for technical staff provided every three years(participation in safety training)

FY
2019

No lost work
time injuries

11

7

5

6

12

41

Minor
injuries

3

2

0

4

14

23

In fiscal 2019, the repetitive
training was launched on a fullscale and given to 762 persons.

FY
2018

Total

15

11

7

10

29

72

4

0

3

0

4

11

No lost work
time injuries

16

8

3

1

8

36

Minor
injuries

1

3

1

2

13

20

Total

21

11

7

3

25

67

Abbreviation of KIBAN KYOHKA training Program, which is
implemented to enhance knowledge and awareness ofsafety and promote the stimulation of safety activities

2

1.5
1

1.80

1.20

1.20

0.13

0.11

0.03

0.07

0

0

0

2016

2017

1.61

1.06

1.06

0.19

0.14

0.11

0

0

0.07

2013

2014

2015

0.94

0.5
0

1.83

1.66

1.58

0.03

All industries

1.63
1.15

1.66
1.02

Manufacturing industry

2018

Governance

Glossary ＊ＫＫＰ

Lost Time Injuries Frequency Rate＊ for Employees in Japan by Year
（Frequency rate）

Environmental
Preservation

During fiscal 2019, we had a total of 72 accidents, which werebroken down into 8 injuries resulting in lost work time, 41 nolost work time injuries and 23 minor injuries (including
employees of the Sumitomo Wiring Systems Group) and theaccident score was 307. Thus, while we set a target of zero
serious accidents and accidents resulting in remaining
disabilities, 50 or less accidents resulting in lost work time, nolost work time accidents or accidents causing minor injury, andan accident score of 212 and met the target of zero serious
accidents, we failed to meet the targets for the number ofaccidents including accidents resulting in remaining disabilities,
as well as the target accident score.
Analysis of the accidents by situation shows a downward trend
in walking and falling accidents. We consider that the
improvement is attributable to changes in the awareness offalls among employees through the S-T-O-P accident campaign.

(Note) The data on employees of the Sumitomo Electric Group cover Sumitomo Electric and its
109 aﬃliates (excluding Sumitomo Wiring Systems, Ltd. (SWS) and the other listedcompanies), as well as the companies that are not aﬃliates of Sumitomo Electric but
subject to occupational health and safety-related guidance and supervision by
Sumitomo Electric. Employees of the SWS Group cover SWS and its aﬃliates.

Human Resources

In fiscal 2019, the number of accidents involving
injury increased slightly from fiscal 2018

Overseas

Accidents
resultingin lost worktime

Discussion in repetitive training

Safety Performance and Future Actions

Total

Japan

Supply Chain

2.Safety training for 3rd-year employees using content
extracted from the curriculum of KKP＊, the practice oftheme-based activities andorganization of a report meeting

Employees

Quality《 Repetitive training for those who have
few opportunities to receive education 》

SWS Group

Temporaryworker,subcontractor

Employees

Social Contribution

1.Listening directly to those affected by accidents(to learn their remorse, hard feelings and physical andmental pains directly)Core
Category《 One-way education based on lectures⇒ dialogue-based education to appeal to sensitivity
and enhance motivation and awareness 》

Groupʼs CSR Activities

While the number of accidents related to facilities is on thedecrease, the number of accidents attributable to human error
or management remains unchanged at a high level. As an
initiative to improve the attitude toward safety, which is one of
the causal factors of accidents, we have reviewed the training
program (Development of human resources with high safety
awareness) since fiscal 2017.

Business Outline

Development of Human Resources
with High Safety AwarenessOn the other hand, other accidents, especially accidents
attributed to causes that can result in a serious accident, did
not decrease. In addition, forklift-related accidents occurredalthough they had not occurred in recent years. Thus, themeasures we have recently taken as priority activities did not
produce results.
In fiscal 2020, we are making efforts to achieve a target of zero
serious accidents and accidents resulting in remaining
disabilities, 47 or less accidents resulting in lost work time, nolost work time accidents or accidents causing minor injury, andan accident score of 210 or less in the Sumitomo ElectricGroup (including the employees of the Sumitomo Wiring
Systems Group) as part of our commitment to “becoming acompany with the highest level of safety in the world.”
Specifically, we will 1) implement safety measures in facilities,
2) develop human resources with high safety awareness and 3)
foster a culture of safety, which are the core initiatives of Safety
VISION 2022. We will particularly take measures to eradicate
the three major accidents that can directly result in serious
accidents, namely the accidents involving “rotating parts andmoving parts,” “forklifts” and “cranes and heavy objects.”
Moreover, we will share safety information with the threecompanies of Sumitomo Riko, SUMITOMO DENSETSU andNissin Electric to create workplaces where people can work
more safely with a sense of security and improve the safetylevel of our Group as a whole including listed companies.
(Number of injuries resulting in lost work time in fiscal 2019
including those in the three companies: 28)

Basis for Management

In fiscal 2019, we prepared guidelines that specify thestandards to be applied across the company and raised thetarget in Safety Vision 2022 from “simple separation” to“separation with fixed fences and temporal separation” tostrengthen the activities in our sites in Japan and overseas.
We are also promoting improvement measures from theperspective of manufacturing such as replacement of forklifts
with other transportation equipment, changes in the flow ofpeople and goods and shortening of transportation distance.

2019 （Fiscal year）

Sumitomo Electric GroupSWS(Note) The lost time injuries frequency rate for employees in Japan in the Sumitomo ElectricGroup covers Sumitomo Electric and its 41 aﬃliates in Japan (excluding SWS and theother listed companies), and the frequency rate in SWS covers SWS.

＊ Frequency rate

Number of deaths and injuries caused by industrial accidents per million working
hours. Used to express accident frequency. The formula is: Number of deaths andinjuries caused by industrial accidents / Total working hours 1,000,000.

CSR Report 2020

56

CSR Core Category

Environmental
Preservation

Environmental Management

CSR Priority Theme

Prevention of Global Warming

Environmental Policy
The Sumitomo Electric Group has developed its environmental
policy based on its business philosophy, which forms the basis
for its business management. The environmental policy,
detailed below, places the highest managerial priority on
activities related to preservation of the global environment.

Environmental Policy (extract)※

Passing on a better global
environment to future generations
is our mission

Revised on April 1, 2020

Basic Philosophy

The Sumitomo Electric Group thinks it is primarily important toestablish a society that is sustainable and has lessenvironmental impact, and contributes to society by providing
products and services.

Action Guidelines

Today, companies are required to further enhance their

1.Considering environmental preservation activity is one of themost important issues for corporative management, theSumitomo Electric Group promotes the activity based on its
action plan.

environmental activities. I assume that environmentallyprogressive companies now aim to link corporate management
to the environment more ﬁrmly and secure the level of●Reduce environmental impacts in manufacturing activities

Prevention of global warming, saving and recycling of resources,
prevention of environmental pollution and protection of biodiversity

environmental conservation demanded by society before
developing their businesses.

●

While the Sumitomo Electric Group is conﬁdent that it has

Increase environmentally-conscious products and services

Introduction of products that help prevent global warming, phase-outof harmful substances and implementation of product assessment

already been committed to energy saving, resource saving and

2.The Group will fulﬁll and enforce environmental
management system.

other environmental activities, such commitment is a common
practice nowadays and we need to take even more aggressive●

initiatives in the future. In the development of products, it isProvision of educational programs on environmental
preservation and implementation of environmental audits

3.The Sumitomo Electric Group will maintain and improve
compliance action.

particularly important to change the way of thinking and set theperspective of environmental conservation as the starting point.

4.The Sumitomo Electric Groupʼs Environmental Policy will be
opened to the public upon request.

In ﬁscal 2019, we enhanced our commitment to the Action
ECO-22V Campaign, which was launched in ﬁscal 2017 to set
our targets for ﬁscal 2022, by adding new initiatives and making
revisions in ﬁve items.

Organizations for Promoting
Environmental Management

For example, we revised the target for GHG emissions fromproduction sites and now aim to reduce the emissions by 5%from the FY2017 level. We also added new initiatives such as
the promotion of the introduction of renewable energy and theimplementation of audits focusing exclusively on the items toreinforce the management of chemical substances in products.

The Corporate Environment Committee deliberates andmakes decisions on the Groupʼs environmental preservation
activities and oversees the activities on a global basis.

Also, in an eﬀort to reduce a substantial amount of GHG

President

emissions, we set a goal that aims even higher. While further
enhancing the environmental awareness in the whole company,

Corporate Environment Committee

we will promote business operations based on the consideration

Chairperson: Oﬃcer in charge of the environment
Members: General Managers of Business Units,
Administration Division, Safety & Environment Department,
Procurement Division, Plant & Production Systems
Engineering Division and Logistics Management
Department, General Managers of Worksof what we should do now to steadily fulﬁll our mission to handdown a better global environment to future generations.

Environment
Task
Committees

Business Unit Environment Committees

Chairperson: General Manager of the Business Unit
Members: Acting General Manager of the Business
Unit, environmental executives of divisions,environmental managers of aﬃliates

Koji Matsunaga

Assistant Manager,
Safety & Environment
Department
Manufacturing Management& Engineering Unit

Resource Saving
and Recycling
Task Committee
ChemicalManagement
Task Committee
Green Logistics
Promotion
Task Committee

Business Unit
Environment
Committees

Works
Environment
Committees
DivisionsAﬃliates locatedinside Worksin Japan

57 CSR Report 2020

Energy Saving
Task CommitteeWeb

Aﬃliates locatedoutside Worksin Japan※ See our website for details.

Divisions

Overseasaﬃliates

https://global-sei.com/csr/environment/management.html

Basis for Management

Action ECO-22V Campaign
The Sumitomo Electric Group has conducted the Action ECO-21 Campaign since April 2003, focusing on E: Environmental

engineering C: environmental Communication O: Originality. Since fiscal 2018, we have conducted the Action ECO-22V Campaign
as a five-year plan.

FY2019results

Evaluation

Reduce 0% from FY2017

Reduce 0%

Reduce 13％◎

Reduce 5% from FY2017

Reduce 2%

Reduce 0.5％▼

Reduce 5% from FY2017

Reduce 2%

Reduce 6.2％◎

Reduce 5% from FY2017

Reduce 2%

Reduce 2.1%○

Promotion of resource （1）Amount of waste (in Japan and overseas):
reduction of waste amount per unit
conservation and recycling[Amount of waste (excluding valuable materials) / sales]

Reduce 5% from FY2017

Reduce 2%

Reduce 18.8%◎

Reduction of substances of （1）Release of chemical substances (in Japan):reduction of the absolute amount ofenvironmental concern
PRTR-designated substances

Reduce 5% from FY2017

Reduce 2%

Reduce 37％◎

Register 100%of new products

１００％

１００％

○

64％

64％

○

（1）CO2 emissions (in Japan and overseas):
reduction of the absolute amountGlobal warming
prevention /Promotionof energy saving（2）Energy saving (production sites): reduction ofenergy consumption per unit of sales[Consumption in crude oil equivalent / sales]（3）Energy saving (oﬃces): reduction of energy

consumption per unit of ﬂoor area
[Consumption in crude oil equivalent / ﬂoor area x the number of employees]（4）Reduction of CO2 in logistics:
reduction of CO2 per unit of sales（1）Eco Mind products

70% of the ratio in sales（2）Eco-products(in Japan)（3）Products with less CO2 emissions

Contribute to reducing CO2 emissions
by 150 thousand tons/year

135 thousand 144 thousand
tons/year

tons/year○

Legend ◎：Performance far exceeding the target (by more than about 150%); ○：Target achieved; △：Target not achieved (performance improved from the previous ﬁscal year);▽：Target not achieved (performance similar to that in the previous ﬁscal year); ▼：Target not achieved (performance deteriorating from the previous ﬁscal year)

Promotion of
resource
conservation andrecycling

Reduce 3%（2）
Reduce energy consumption per unit of sales in production sites by 5% from the FY2017 level

Reduce 3%（3）
Reduce energy consumption per unit of sales in oﬃces by 5% from the FY2017 level

Reduce 3%（4）
Reduce CO2 emissions per unit of sales from transportation by 5% from the FY2017 level

Reduce 3%（5）Promote renewable energy installation

Promote the introduction ofphotovoltaic power generation（1）
Reduce amount of waste per unit by 5% from the FY2017 level

Reduce 3%（2）
Reduce water use of per unit of sales by 5% from the FY2017 level

Reduce 3%

Implement protection
activities（1）
Maintain the registration of 100% of new products as “Eco Mind” products １００％
（2）
Increase the ratio of Eco-products in sales to 70%

66％

（3）
Reduce CO2 emissions by 150 thousand tons with products with less CO2 emissions

140 thousand tons/year

Management of chemical（1）
Strengthening the management of chemical substances in products
substances in products●●

Governance

Expansion ofenvironmentallyconscious
product range（1）
Promote the protection of biodiversity

Reduce 3%

Environmental
Preservation

Reduction ofenvironmental impact
from products（1）
Reduce GHG emissions from production sites by 5% from the FY2017 level

Reduction of substances of
Reduce the release of PRTR-designated substances by 5% from the FY2017 level
environmental concern （1）Protection of
biodiversity

Targets for FY2020

Human Resources

Reduction of environmental impacts frombusiness activities

Global warming
prevention /Promotionof energy saving

Descriptions ・ Targets for FY2022

Supply Chain

Item

Quality

The target for the reduction of GHG emissions was changed from no increase to reduction by 5% in fiscal 2020 to enhance thepromotion of measures to prevent global warming. We also added the promotion of the introduction of renewable energy to theaction items.
Furthermore, we added the reduction of water consumption and the management of chemical substances in products, to which wewere committed in the past, to the items and also introduced the protection of biodiversity as a new item. We will disclose our specificenvironmental targets internally and externally and promote activities to reduce the environmental impact even more aggressively.

Social Contribution

Expansion ofenvironmentallyconscious
product rangeCore
Category

Targetsfor FY2019

Descriptions

Groupʼs CSR Activities

Reduction of environmental impacts frombusiness activities

Period: FY2018 ‒ 2022
Targets for FY2022

Item

Reduction ofenvironmental impact
from products●

Business Outline

Targets of the Action ECO-22V Campaign

Implement audits
Enhance training

CSR Report 202058

Measures and Activities for the Environmental Risk Management Items of Sumitomo Electric
We examine measures to address risks and problems and formulate a growth strategy
Main environmental risks
Risk Factor

ImpactCountermeasures and Activities

Temperature rise
Physical risks

Energy saving (evaluation, investment and activities),
renewable energy

Sea level rise
Increase in the size and frequency of typhoons
Regulations on atmospheric emissions and wastewater discharge

ClimatechangeCarbon pricing
Regulatory risks

Implementation of detailed compliance audits
Energy saving (evaluation, investment and activities)

Reduction of GHG emissions
Display of environmental labels

Development and marketing of eco-friendly products

Renewable energy

Cost reduction and promotion of renewable energy

Supply shortage, seasonal and interannual ﬂuctuations
Physical risks

Flood and drought

Reduction of water withdrawal,
formulation of emergency countermeasures,development of infrastructure

Deterioration of water quality
Water

Regulatory risks
Reputation risks

Restriction on water withdrawal/discharge
Soaring water prices
Opposition from the local community

Connection with the local community

Negative media coverageDiﬃculty in the disposal due to disqualiﬁcation of the disposer, etc.
Notiﬁcation of diﬃculty in the disposal from the disposer

Reduction and recycling of waste,management of the disposer through on-site checks

Chemical substances

Certiﬁcation that no prohibited substances arecontained in products

Evaluation at the development stage and management
at the purchase and manufacturing stages

Environmental accidents

Shut-down (suspension) of operation

Prevention through the evaluation of facilities

Waste

Non-compliance with law

Shut-down (suspension) of operation
Payment of ﬁne

Implementation of detailed compliance audits〈Direct risks〉Investment in equipment for responses to regulations, increases in energy cost, restriction on energy use,
shut-down (suspension) due to wind or water damage〈Indirect risks〉Increases in the costs of raw materials, energy, water, waste, etc., suspension of operation due to an accident or non-compliance with law

Education and Training

We provide systematic education programs on
environmental conservation
To realize environmental management, the Sumitomo Electric

Global Environmental Audits

We implement audits of overseas sites, as well assites in Japan, according to the environmental laws
in the countries and regions where they are locatedGroup works to enhance every employeeʼs environmental《 Environmental legal compliance audit 》

education on the history of measures to protect the global

Electric Group implements environmental audits with focus onawareness and knowledge. We provide all employees withenvironment as well as the Groupʼs environmental policy andthe Action ECO-22V Campaign.

The managerial post-based career training program involves

legal and general education on the environment. Since fiscal

2014, the program has been provided through on-site practicaltraining sessions including on-site inspection of environmental

facilities to enhance sensibility in environmental management.

We also organize training on environmental laws and technicaleducation on chemical management and other issues on aregular basis. Training for assistant plant managers was added
to the program in fiscal 2018.
Training opportunity

In addition to examinations based on ISO 14001, the Sumitomo
compliance with environment-related laws and the efforts in the
Action ECO-21 Campaign to ensure compliance with relevantlaws and reduce environmental impact. The first round of theaudits for manufacturing sites in Japan was started in fiscal
2008 and completed in fiscal 2011. We are scheduled tocomplete the second round within fiscal 2020.

Environmental audits of manufacturing sites outside Japan werealso launched in fiscal 2010. As of the end of fiscal 2018, we
have completed 48 of the 53 sites subject to audits: We areplanning the audits with focus on our sites in China in fiscal 2020.

《 Evaluation of Facilities That May Affect Water Quality 》
Title of the training

In response to a revision of Japanese Water Pollution Control Law
in 2012, we started the evaluation of facilities that use any of the

Career(managerial post-based)

Position-based training

Nomination-based

Training on the management of poisonous anddeleterious substancesTraining on the notiﬁcation of facilities subject toenvironmental laws

In Japan, we completed the first round of the evaluation by

Optional

Professional education on environmental laws
Training on energy saving design
Training on the Japanese Chemical Substances Control Act
PRTR（Pollutant Release and Transfer Register）training
Training on the management ofchemical substances in products
Training on Energy Saving Handbook
Action ECO-22V

that combine legal compliance checks with evaluations on

On-site59 CSR Report 2020

hazardous substances, designated substances, oils, etc. and may

thereby affect water quality. The equipment and ancillary facilities
are inspected to assess the management status on the check

items set for each of the parts such as liquid storage and pipes.
fiscal 2016 and have conducted environmental audits thatcombine legal compliance checks with evaluations on water
quality since fiscal 2016. We also started the evaluation ofoverseas sites in fiscal 2013 and conduct environmental audits
water quality as we do in Japan.

《 Check of the Progress in the
Activities of the Action ECO-22V Campaign 》

Department of Sumitomo Electric, decreasing from fivethe activities and progress.

a fine for non-compliance by failing to make notification in《 Conﬁrmation of Legal Compliance 》

regulatory value on effluent and received guidance from theviolations reported in fiscal 2018.

An affiliate in China received an order from the authority to pay

Basis for Management

We have set check items for environmental audits and evaluate

September 2019. Another affiliate in Japan exceeded the

In fiscal 2019, two violations of laws and regulations (cases

authority in December of the same year.

where guidance, recommendation or order to pay fine wasissued by the authority) were reported by Sumitomo Electricand its Group companies to the Safety & Environment

We will continue to strive for a proper understanding of theregulations in the respective regions to ensure thoroughBusiness Outline

compliance.

Material Balance (Environmental Impacts)
INPUT

Raw materials

350 thousand tons

Iron

384 thousand tons

Aluminum

29 thousand tons

Resin

99 thousand tons

Chemical substances ＊ 12 thousand tons
Product packaging materials‑

2,469 million kWh

LPG

52 million m3

Other fuels

6 thousand kl(converted into crude oil equivalent)

Product design

Greenhouse gases other than CO2 45 thousand tons

CO2

Manufacture
Shipment

13,775 thousand m3

1,328 thousand tons

Scope １

197 thousand tons

Scope 2

1,176 thousand tons

Scope 36,921 thousand tons

NOX ＊73 tons

SOX ＊8 tonsWastewater

Resource
circulation

Wastewater

12,026 thousand m3

WastesRawmaterials
EnergyGeneral wastes

15 thousand tons

Industrial wastes

62 thousand tons

Chemical substance emissions
Into the air ＊

Water

●

●

Materials (copper, iron, aluminum and resin): Total quantity of the
product materials managed on a weight basis (those used by abusiness unit in the amount of 100 tons or more in total)
Chemical substances: Chemical Substances speciﬁed in the PRTR
(Pollutant Release and Transfer Register) Law
Product packaging materials : Corrugated cardboard, paper, resin
and wood●

Electricity : Purchased from electric power companies●

Other fuels: Heavy oil, kerosene, gas oil and natural gas●

Water : City water, industrial water and well water (groundwater)●

Transportation fuel : Gasoline, gas oil etc.

Logistics

CO2 emissions ＊122 tons
36 thousand tons

Product shipments: Total shipments of the product materials
managed on a weight basis (those shipped by a business unit in
the amount of 100 tons or more in total)● CO 2 : CO2 emitted from the use of electricity, gas and fuels● Greenhouse gases other than CO2 : SF6, HFC, PFC and othergreenhouse gases converted to CO2 equivalent● NOx : Nitrogen oxides emitted from the use of gas and liquid fuels● SO x : Sulfur oxides emitted from the use of liquid fuels● Wastewater : Wastewater discharged from plant production
processes, and household wastewater● General wastes: Non-industrial wastes (including paper, ﬁbers and other trash)generated through business activities (excluding valuable materials)● Industrial wastes: Wastes speciﬁed in Japanese “Waste Management andPublic Cleansing Law,” including sludge, waste oils, waste acids/alkalis,
waste plastics, metals, glass, ceramics, cinders and other substances
generated through business activities (excluding valuable materials)●

Environmental
Preservation

Boundaries of data integration Items with ＊: Sumitomo Electric + aﬃliates in Japan; Items without ＊: Sumitomo Electric + aﬃliates in Japan and overseas※In the Environment and Energy Group, which is included in the boundary of data collection, only data on the amount of the materials purchased by
the Procurement Division of Sumitomo Electric alone are covered.

Human Resources●

14 thousand kl

1 ton
Supply Chain(converted into crude oil equivalent)＊

40 tons

Into the water ＊As industrial waste ＊Transportation fuelQuality

Water
Water

Atmospheric emissions

8 thousand tons

City gas

569 thousand tons

Social Contribution

Electricity

Product shipments

Research &Development

Core
Category

EnergyProduction and sales volume
Groupʼs CSR Activities

Copper ※OUTPUT

Withinfacilities

Explanation of the Boundary

CSR Report 2020

GovernanceIn promotion of environmental management, Sumitomo Riko Company Limited, Nissin Electric Co., Ltd., SUMITOMO DENSETSU CO., LTD. and TECHNO ASSOCIE Co., Ltd.,
which are listed in the stock exchange in Japan, and their consolidated companies are excluded from the boundaries of the environmental management of theSumitomo Electric Group although these companies are included in the boundaries of consolidation for financial reporting.
When the comprehensiveness of the boundaries is assessed based on greenhouse gas (GHG) emissions, a representative environmental indicator, the emissions fromthe boundaries of the environmental management of our group, 1,373 thousand tons, account for the vast majority of 1,800 thousand tons, which are estimated GHG
emissions from the boundaries of consolidation for financial reporting in fiscal 2019.
In the meantime, out of the 258 consolidated subsidiaries excluding the 4 listed companies mentioned above, the environmental management of our group covers
147 companies in production units (41 in Japan, 31 in China, 37 in Asia (except China), 19 in the Americas and 19 in Europe and other in fiscal 2019). Our trial
calculation indicates that environmental impact, such as GHG emissions, of the 147 companies is estimated to occupy 99% of that of the 258 subsidiaries.

60Activities to Prevent Global Warming
Reduction of Greenhouse Gas Emissions
Our GHG emissions decreased substantially fromthe base year both in Japan and overseas

Factor Analysis of Changes in Greenhouse Gas Emissions(in Japan and overseas)
Emissions converted to CO2 equivalent(thousand tons-CO2e/year)

1,600

The Sumitomo Electric Group has worked to meet the target
for fiscal 2022 of achieving no increase in GHG emissions

1,541

4

1,400

from the fiscal 2017 level as an initiative to prevent global

▲102

1,200

warming.
Each division is actively committed to environmental activities

0

2018

with focus on the promotion of energy saving. Moreover,while serving as the organizer, the Energy Saving Officepromotes energy saving activities across the Sumitomo Groupthrough cooperation with the task committee member
appointed from each division.

Change due toboundaries change

2019 (Fiscal year)

Actualchange(Note 1) Change due to boundaries change: Emissions in ﬁscal 2018 from the boundaries ofcollection newly added or excluded in ﬁscal 2019.
Change due to sales change: [Emissions in ﬁscal 2018 from the boundaries of collection
for ﬁscal 2019] (Sales in ﬁscal 2019 / Sales in ﬁscal 2018 - 1)
Actual change: Calculated by subtraction(thousand tons-CO2e/year)

caused by the COVID-19 pandemic in the second half, our800

GHG emissions in fiscal 2019 decreased from the fiscal 2017
level both in Japan and overseas. The emissions in the wholeGroup declined by 13% from the fiscal 2017 level.

744 730 764 727

700

emissions by 5% from the fiscal 2017 level by fiscal 2022 andpromote the activities to meet the target.

627

429 428400
300

268 258 276

200
100
Reduction ratio (%)

0Europe, etc.

2014

2

375

285 285 295
220 210187
107 99 96

52 57 65 60 56 57

0

2.2

708

600
500

From fiscal 2020, we set a higher target of reducing GHG

0Change due tosales change

Greenhouse Gas Emissions from the Global Operations of
the Sumitomo Electric Group by Region

With these activities and partly due to a decrease in CO2emission factor for electricity, as well as a fall in production

Greenhouse Gas Emissions and Reduction Ratio(in Japan and overseas)

1,373

▲70

2015

China

2016

Asia (except China)

2017

Japan

2018

139 140 126

Americas

2019

4
6
8

Emissions converted to CO2 equivalent(thousand tons-CO2e/year)

1,600
1,400
1,200
1,000
800
600
400
200
0

1,456

1,497

13.0
1,541

711

700

732

848

833

744

730

764

727

708

2014
ResultOverseas

1,430

1,575

2015
ResultIn Japan

2016
Result

2017
Base

2018
Result12

746
627(Fiscal year)

Reduction ratio(Note 1) The results in ﬁscal 2017 and thereafter were calculated as mentioned below.
GHG emissions are calculated based on the Greenhouse Gas Emissions Accounting andReporting Manual Ver. 4.6 (2020) by the Japanese Ministry of the Environment and Ministryof Economy, Trade and Industry (except the emission factors, which are mentioned below).
Basic policy on the emission factors: The latest available emission factors at the time of
the calculation are used for purchased electricity
while ﬁxed emission factors are used for other thanpurchased electricity.
CO2 emission factor for purchased electricity:[In Japan] Adjusted emission factor of each electricity power supplier published in the“Disclosure of basic emission factor, adjusted emission factor, etc. of eachelectricity power supplier for ﬁscal 2018” (2019) by the Japanese Ministryof the Environment[Overseas] Emission factor in each country for 2017 mentioned in “CO2 Emissions from
Fuel Combustion 2019” (2019) by IEA
CO2 emission factor for other than purchased electricity:[Both in Japan and overseas] Emission factor in “Greenhouse Gas Emissions Accounting
and Reporting Manual Ver. 4.6” (2020) by the Japanese
Ministry of the Environment and the Ministry of Economy,
Trade and Industry(Note 2) The results for the period from ﬁscal 2014 to 2016 were calculated as mentioned below.

In fiscal 2019, we reduced energy consumption per unit ofsales by 0.5% from the fiscal 2017 level although we failed tomeet the target.
While sales decreased this fiscal year due to the impact of
the COVID-19 pandemic, the steady efforts of the divisions toimprove energy efficiency resulted in the reduction of per-unit
energy use.
In the future, we will continue the evaluation of energy
consumption per unit of production in each division forfurther improvement, and strive to meet the target for thewhole Group through the achievement of the target in eachdivision.
Energy Consumption and Energy Consumption per Unit of Sales(in Japan and overseas)
Energy consumption(TJ/year)29
25,000

Basic policy on the emission factors: ﬁxed emission factors are applied

10,000[Overseas] Emission factor in each country for 2011 mentioned in “CO2 Emissions from
Fuel Combustion Highlights 2013” (2013) by IEA
CO2 emission factor for other than purchased electricity:[Both in Japan and overseas] Emission factor in “Guidelines for accounting of greenhousegas emissions from industrial commercial sectors” (2003) by
the Japanese Ministry of the Environment

28

30

30,00020,000[In Japan] Actual emission factor of each electricity power supplier published in the“Disclosure of actual emission factor, adjusted emission factor, etc. of eachelectricity power supplier for ﬁscal 2012” (2013) by the Japanese Ministryof the Environment

Energy consumption per unit of sales(kl/100 million yen)

40

GHG emissions are calculated based on the Greenhouse Gas Emissions Accounting andReporting Manual Ver. 3.5 (2014) by the Japanese Ministry of the Environment and Ministryof Economy, Trade and Industry (except the emission factors, which are mentioned below).
CO2 emission factor for purchased electricity:

61 CSR Report 2020

Production efficiency has been improved

14

1,373

2019
ResultReduction of Energy Consumption

10

23,958 23,707 24,390

31

30

31

35
30

27,786 28,177 27,506

25

15,000

5,000
0

2014
Result2015
Result2016
ResultIn Japan and overseas operations

2017
Base

2018
Result2019 (Fiscal year)
ResultEnergy consumption per unit of sales(Note 1) Energy consumption per unit of sales: Crude oil equivalent of energy consumption divided by sales

《 Specific Measures 》

We provide data to CDP＊

In fiscal 2014, we started to publish our emission data for
Scope 3 and receive independent assurance on Category 4:
Upstream transportation and distribution.

Scope １

197

Scope 2

1,176

Scope 3

6,921

To promote energy saving activities of Group companies anddivisions, we have taken such measures as energy saving
evaluation, measurement-based evaluation and horizontal
deployment of technologies that had not been adopted in the
Sumitomo Electric Group, and proposed new ideas.
From fiscal 2016, in addition to the proposal of ideas, we also
promote cooperation in priority areas, in which we actually
implement improvement measures in cooperation withdivisions, and conduct the PDCA cycle to ensure theeffectiveness.
The speciﬁc measures are described below.
●

Fuel- and energy-related activities not249
included in Scope 1 or Scope 2

4

Upstream transportation and distribution

36

5

Waste generated in operations

30

6

Business travel

37

7

Employee commuting

81

8

Upstream Leased Assets−

9

Downstream Transportation and Distribution−

10

Processing of Sold Products−

11

Use of Sold Products

12End-of-Life Treatment of Sold Products−

13

Downstream Leased Assets−

14

Franchises−

15

Investments

−

3,507

(Note 2) Scope 1: Direct emissions from the use of fossil fuels, etc. in our facilities(including SF6 and other greenhouse gases)
Scope 2: Indirect emissions from the use of electricity and steam supplied from outside our facilities
Scope 3: Total emissions not only from the reporting organization but also from all sources
related to its business activities(Note 3) The data for Category 4 in the table above cover logistics data in Japan only.
(Note 4) Basic Guidelines on Accounting for Greenhouse Ｇas Emissions Throughout the Supply Chain,Ver. 2.3 of the Japanese Ministry of the Environment were referred to for the calculation.

We are working to reduce wasteful use andimprove efficiency with the effects of ideas forenergy efficiency improvement《 Energy Efficiency Improvement Measures to Reduce Energy Use 》
reducing energy consumption per unit of sales by 1% perannum from the ﬁscal 2017 level in the Action ECO-22V
Campaign. Meanwhile, Group companies and divisions set
the target of reducing energy consumption per unit ofproduction by 2% per annum from the ﬁscal 2017 level andstrive to meet it through the discovery of subjects for energy
In ﬁscal 2019, while the target was a reduction of 2.0% fromthe ﬁscal 2017 level, we failed to meet the target but still
reduced per-unit energy consumption by 0.5% despite a fallin production volume caused by the COVID-19 pandemic.

Cooperation in priority areas :Divisions and the Manufacturing Management & Engineering
Unit closely cooperate for improvement of overall efficiency
while giving priority to the divisions with a relatively large
share in energy consumption. In addition to tangible aspects
such as equipment, intangible aspects such as productionengineering are also considered in the improvement activities.

Energy Saving Activities in Offices

We are working to make employees always awareof energy saving
We have assigned a member and a vice member of the
Workplace ECO Activity Promotion Committee in each
workplace of the head offices, district offices and branch
offices. The committee members perform and promote thefollowing activities:① Dressing cool in summer and warm in winter,to keep air conditioning moderate② Turning off all office lights during lunch break③ Turning off lights and air conditioners in meeting rooms andtoilets when not in use④ Introducing economy mode for PCs and power-saving
OA devices on a preferential basis⑤ Using zone lighting during overtime hours

Promotion of the Introduction of
Renewable Energy
While the Sumitomo Electric Group conventionally promoted
the introduction of photovoltaic power generation, we haveadded it to the action items of the Action ECO-22V Campaign
to promote the introduction more actively. In the future, we willconsider the installation of photovoltaic power generationequipment actively on such occasions as the construction of a
new building.

Governancesaving and promotion of activities in a planned manner.

●

Environmental
Preservation

We work to meet the group-wide energy saving target ofAmong the latest energy-saving technologies that have notbeen introduced in our Group, we identify those that arelikely to be effective and evaluate their performance. We
especially promote measures that focus on the recovery of
waste heat to make effective use of unused heat. The newtechnologies evaluated as being effective will be adopted ona group-wide scale in the future.

Human Resources

Energy Saving Activities in Production Units

Development and evaluation of new technologies :Supply Chain(Note 1) (-) indicates that the calculation method is under consideration or the category is not applicable.

●

Quality3

583

Social Contribution

Capital goods

Core
Category

22,398Groupʼs CSR Activities

Purchased goods and services

Measurement-based evaluation :We use ultrasonic wave or infrared based instruments todetermine the volume of steam and compressor air leaks.
In addition to judgment on whether there is a leak or not,expected cost reduction effects are shown in a quantitative
manner to facilitate improvements. We also started topromote IoT-based diagnosis for the monitoring of data inremote sites, which has been effective for the elimination ofwasteful power consumption and the prompt detection ofproblems in equipment.

Description

1

Business Outline

Greenhouse Gas Emissions in FY2019 (thousand tons-CO2e/year)

Category

Basis for Management

Emission data for Scope 3

Glossary ＊CDP (former name: Carbon Disclosure Project)

In CDP, an international NPO, institutional investors collaborate to implement a project that requests
companies to establish strategies against climate change and publish data on GHG emissions.

CSR Report 2020

62

Reduction of CO2 Emissions in Logistics
Decrease in per-unit CO2 emissions from transportation in Japan
Per-unit CO2 emissions from transportation in Japan werereduced by approximately 1.7% from the fiscal 2018 level in
Sumitomo Electric (Note 1) and by approximately 6.1% in Sumitomo
Wiring Systems, Ltd. As a result, the reduction rate in the whole
Sumitomo Electric Group was approximately 3.4% (Note 2).
The reduction in Sumitomo Electric was attributable to the shiftof the transportation of copper wires from truck to rail.
Produced copper wires had been temporarily transported bytruck due to the disconnection of JR Sanyo Main Line as theresult of heavy rain that hit western Japan in fiscal 2018. Since
the line was fully restored at the end of March 2019,
conventional rail transportation was resumed. Other factors that
helped us reduce CO2 emissions included the dramatic
reduction of urgent transportation of sintered products by 4-ton
vehicle or light/compact vehicle due to the stabilization of the
production as well as the use of coastal transportation from
Hitachi and Toyoura Plants (current Overhead Transmission Line
Division) for an overhead transmission cable installation projectin Yamaguchi Prefecture.
In the meantime, Sumitomo Wiring Systems, Ltd. reduced
per-unit CO2 emissions through such initiatives as the review of
its transportation network and the reorganization of relay points
to improve the loading efficiency and reduce the number oftrucks used for transportation.
Our Group also works to secure transportation capacity in theevent of a natural disaster and improve transportation efficiency
through initiatives including the shift of railway transportation tocoastal transportation, as well as the use of a 21-m full trailer
truck to promote the extension of transportation sections.

Per Unit CO2 emissions by Year
(tons-CO2/million ton-km)
105.0
100.0

96.2

95.0
90.0

3.47

85.0
0

2015

95.3
3.35
2016

97.2

101.2

(tons-CO2/100 million yen)

99.5

4.50

2.76
2017

2.39

3.00
2.50
0

2018

2019

Sumitomo Wiring Systems, Ltd.
(Note 1) Sumitomo Electric and its 31 manufacturing companies in Japan (excluding Sumitomo
Wiring Systems, Ltd.)(Note 2) Per unit CO2 emissions in the Sumitomo Electric Group compared with the previous ﬁscal year
Sumitomo Wiring Systems, Ltd. adopts CO2 emissions per sales amount as the basis forthe calculation while other Group companies use CO2 emissions per cargo transport(t-km). Therefore, the weighted average of each year-on-year CO2 emission reduction
rate is calculated based on the CO2 emissions.

Changes in CO2 emissions
CO2 emissions from transportation in Japan decreased byapproximately 2.6% from the fiscal 2018 level in Sumitomo
Electric and by approximately 4.2% in Sumitomo Wiring
Systems, Ltd. As a result, the reduction rate in the whole Group
was approximately 3.2%.
Meanwhile, CO2 emissions from exports in Sumitomo Electric
dropped by approximately 1.1% due to a significant decline inmarine and air transportation to China and air transportation to
Southeast Asia and other reasons despite an increase in the useof flights to North America by about 40%.
In Sumitomo Wiring Systems, Ltd., CO2 emissions from exports
also decreased by roughly 18% due to the significant
reduction of air transportation by about 30%, as well as the
reduction of marine transportation to North America andEurope by about 16%.
With those changes, the CO2 emissions in the Sumitomo ElectricGroup as a whole decreased by approximately 6.8% from thefiscal 2018 level to 89,500 tons.

63 CSR Report 2020

Ocean vessel
21,542t- CO2
International
air
36,874t- CO2

37,577t- CO2

FY ２０１8
Annual CO2
emissions

Truck etc.
34,746t- CO2

Railroad
667t- CO2
Vessel in Japan
2,164t- CO2

95,993t-CO2

Transportationin Japan

Export53,116t- CO2
Ocean vessel
19,056t- CO2

FY ２０１9Annual CO2
emissionsInternational
air
34,060t- CO2

t-CO2

89,48936,373t- CO2
Truck etc.
33,568t- CO2
Railroad
621t- CO2

Vessel in Japan
2,184t- CO2(Note) Boundaries of data collection: Sumitomo Electric + 31 manufacturing companies in Japan +Sumitomo Wiring Systems, Ltd.
CO2 emissions in Japan are calculated on an improved ton-kilometer basis and a fuel-eﬃciency basis.
CO2 emissions from export activities are calculated using the conventional ton-kilometer method.
Based on the simple calculation tool for logistics CO2 emissions by Policy Research Institute for Land,
Infrastructure, Transport and Tourism (PRILIT)

Reduction of transportation distance in Japan
with changes in the ports of shipment for exports
Sumitomo Electric exports spring wires produced in
Muroran Plant to Southeast Asia and North America.
Conventionally, those products were delivered to Itami
Plant, our main plant, by coastal transportation first andthen exported from the Port of Kobe together with products
produced in Itami Plant.
Partly due to the recent growth in the production volume in
Muroran Plant, the products of the plant are now exported
directly from Tomakomai Port, which is the nearest port tothe plant, to reduce the domestic transportation from
Muroran to Itami (about 1,600 km).
As a result of this shift, products of about 350 tons were
exported from Tomakomai Port in fiscal 2019 to reduce
CO2 emissions by about 20 tons.
Transportation routeafter improvement

Muroran Plant

Conventionaltransportation route

Tomakomai Port

(Fiscal year)

Sumitomo Electric Group (Sumitomo Electric + 31 manufacturing companies
in Japan (excluding Sumitomo Wiring Systems, Ltd.))

Glossary ＊Eco Rail Mark58,416t- CO2

4.00
3.50

2.55

Transportation in Japan

ExportCO2 emissions reduced
in FY2019

Transportation weight：
approx. ３５０ tons

To Southeast
Asia andNorth America

CO2 reduction：
approx. ２０ tons

Itami Plant
Port of Nagoya

Coastaltransportationin Japan:approx. 1,600 km

Port of Kobe

To Southeast
Asia andNorth America〔Spring wire〕
Four coils are piled up verticallyin dedicated iron frames (carriers).

Sumitomo Electric has acquired certification as acompany engaged in the initiatives of Eco Rail Mark＊
from the Railway Freight Association.

A certiﬁcation mark awarded by the Ministry of Land, Infrastructure, Transport and Tourism, Government of Japan. The use of the mark is allowed only for
products or companies that use rail transportation, which generates relatively less CO2 emissions and is therefore environmentally friendly, in accordancewith designated criteria. The mark included in packages and advertisements of products serves as a judgment standard for customersʼ purchase decisions.

Promotion of Resource Conservation and Recycling
Amount of Waste by Type in FY2019 (in Japan)
Waste landﬁlled or incinerated without heat recovery Total : 401 tons/year

We are working to manage waste in a proper manner
The Sumitomo Electric Group is also committed to reducing theamount of industrial waste generated in its facilities by improving
production efficiency.
To reduce the amount of waste, we promote conversion of thewaste into valuable materials through separation and search ofuses, and also focus on reduction of defects and review of theprocess that caused defects in production sites, which are
fundamental activities for manufacturing, as well as in-housereuse of the waste generated and reduction of waste volume.
In the Action ECO-22V Campaign, we are working to meet thetarget of reducing amount of waste per unit of sales by 1% peryear with fiscal 2017 as the base year. In fiscal 2019, the per-unit
amount was reduced by 18.8% from the fiscal 2017 level.
The amount is on a downward trend with the effects of our
response to an increase in waste plastic as a result of therestriction on the imports of waste plastic in China, which occurredin fiscal 2017. Other initiatives including the prevention of troubles
in the waste liquid treatment equipment, the promotion of proper
waste management and the introduction of equipment to reduce
waste volume have also constituted to the reduction.
We will continue to make efforts with focus on recycling of plastic
through the thorough separation of waste plastic and the reductionof unneeded materials generated through waste liquid treatment.

Heat recovery

8,253 tons/year

Material recycling

18.8

80
60

Amount of recycled waste Total : 66,095 tons/year
Waste metal

SludgeWaste plastics
Waste acid
Waste alkali
Waste paper
Waste oil
Wood waste
Other waste liquid
Others

37.4

40
20

39.8

2014

In Japan

30.1
2015

Overseas

37.3
2016

53.3

39.5
2017

10

46.2

37.8
2018

30

31.1
2019

Promotion of Recycling (overseas)(Fiscal year)

Reduction rate per unit of sales(Note) Amount of waste per unit of sales: Amount of waste (excluding valuable materials)
divided by consolidated sales《 Promotion of recycling (in Japan) 》

Amount of industrial waste+ Amount of general waste+ Amount of valuable materials

While the situation of landfill sites overseas is different fromthat in Japan, the Sumitomo Electric Group refrains fromlandfilling industrial waste easily and works to recycle andconvert waste into valuable materials to the extent possible
through separation of waste and other efforts to maintainproper waste management in the overseas bases as well.
We also operate in countries where the environment forrecycling has not been developed, and will be continuously
committed to the reduction of the zero emission rate on a
global scale.
Amount of Waste and Zero Emission Rate (Overseas)

×100

Amount of waste(thousand tons/year)

10.1(Note) From the Action ECO-21 (Phase Ⅵ) Campaign launched in ﬁscal 2015, all valuable materials,
part of which were not included in the denominator until ﬁscal 2014 (the materials thatwere already treated as valuables in ﬁscal 2000), are included in the denominator.

120
100

Amount of waste(thousand tons/year)

100
80
40
20
0

81.4

0.10
73.3

48.8

43.3

32.5

30.0

2014

2015

0.0

0.1

Valuable materials
Zero emission rate

0.03

0.22

0.8
0.4

81.6

88.5

81.4

44.2

48.9

43.6

37.3

39.3

37.2

0.0

0.2

0.6

2016

2017

Recycled waste

Zero emission rate (%)

0.54

2018

0

74.7
43.6
30.7
0.4

2019 (Fiscal year)

Incineration and landﬁll wastes

81.8
44.4

46.4

52.6

29.1

32.3

32.4

40
20

8.3

0

2014

7.5
2015

Valuable materials
Zero emission rate

109.4

50.4

56.1

43.8

43.0
13.8

8.3
2016

2017

Recycled waste

10

104.3

0

58.1

32.9
10.3

2018

13.3
2019 (Fiscal year)

Incineration and landﬁll wastes

Governance

60

0.03

0.76

60

93.4

86.2

108.1

20

12.7

9.4

Environmental
Preservation

80

Amount of Waste and Zero Emission Rate (in Japan)

Zero emission rate (%)

12.8

8.9

8.7

Human Resources

Amount of waste incinerated without heat recovery+ Amount of landﬁll waste

We are promoting waste management outside Japan

Supply Chain

To help solve social problems, such as shortage of waste disposalsites and illegal waste dumping, and to make effective use ofresources, it is necessary to avoid landfilling of industrial waste
easily and recycle waste to the extent possible. The Sumitomo
Electric Group also works to reduce the zero emission rate.
In Japan, while the rate has been on an increasing trend since
fiscal 2018 due to the issue of waste plastic in China, it slightly
declined to 0.54% in fiscal 2019.

Zero emission=
rate (%)

36,830

6,689
5,622
5,396
3,860
2,977
2,716
729
419
857

Quality

32.5

0

40.7

Reduction rate (%)
0
20

57.6

43,607 tons/year

tons/year

Social Contribution

8.7

Valuable materials

74,748Core
Category0

Amount ofwasteGroupʼs CSR Activities

22,488 tons/year

Amount of Waste (excluding valuable materials) andReduction Rate per Unit of Sales (in Japan and Overseas)

100

299

40
21
19
22

Business Outline

Waste plastics
Waste paper
General waste
Waste glass
Others《 Reduction of the Amount of Waste 》

Amount of waste (excluding valuable materials)(thousand tons/year)

Basis for Management

Reduction of the Amount of Waste
and Promotion of Recycling(Note 1) From ﬁscal 2019, results in KPMC＊ and NIRE＊, which were working to establish a data collection
system, as well as some other newly established bases, are added to the data collection. As a result,the amounts of incineration and landﬁlled wastes, recycled waste and valuable materials increased
by approximately 2.1 thousand tons, 0.2 thousand tons and 2.6 thousand tons, respectively.
(Note 2) From ﬁscal 2019, customer service centers and other overseas non-production bases are excluded
from the collection of data because we have decided to include the data of production bases only.
In ﬁscal 2018, the total amount of waste discharge and valuable materials sold in the excluded
bases was 6.3 thousand tons.

Glossary ＊KPMCKeystone Powder Metal Company＊NIRE

Niagara Reﬁning LLC

CSR Report 2020

64

Reduction of the Release of Harmful Chemical Substances
Chemical Substance Management System

Reduction of the Release of Chemical
Substances Specified in the PRTR Law

We have established an original system to unify
the management of chemical substances

The Sumitomo Electric Group established a chemical
management system, and started the management of poisonousand deleterious substances and PRTR-designated substances in
Sumitomo Electricʼs three Works in Osaka, Itami and Yokohama,and our affiliates in the Works in fiscal 2011. The system is also
used to collect data for reporting under the PRTR Law＊.
In fiscal 2012, domestic affiliates outside the three Works also
launched the operation of this system in sequence, which enabled
the search of the companies using poisonous and deleterious
substances and safety data sheets (SDS) concerning all poisonousand deleterious substances used in affiliates in Japan.
From fiscal 2019, our Ibaraki Works, which was newly
established, is included in the collection of data.
We will continue our efforts to enhance the management ofchemical substances used in the Group.

Release and Transfer of Chemical
Substances Specified in the PRTR Law
The whole Group, including overseas affiliates,
is submitting reports in accordance with the applicable laws
Sumitomo Electric and its affiliates in Japan, using the chemical
substance management system developed by the Company,
measure the amount of PRTR substances treated per month,and calculate the amount of these substances released andtransferred in order to report annually in accordance with thelaw. A total of 38 sites of Sumitomo Electricʼs Osaka andYokohama Works and 26 Group companies submitted suchreports for ﬁscal 2019. Sumitomo Electric Group's total releaseand transfer of PRTR-designated substances in Japan were 33
tons and 100 tons, respectively.

140

131

133

59

50

53

51

52

2015

2016

2017

by 5% as an initiative of the Action ECO-22V Campaign fromfiscal 2018 to fiscal 2022. In fiscal 2019, we made efforts tomeet the target of reducing the amount by 2% from thefiscal 2017 level. We worked to cut the atmospheric releasein the sites that release 1 ton or more to the air in a year to
reduce the annual release by 37.2% from the fiscal 2017
level to 31.7 tons in fiscal 2019, which met theabove-mentioned target.

Soil and Groundwater Remediation
We disclosed the pollution status of three major Works(Osaka, Itami and Yokohama) in August 2001. At those three
Works and other domestic sites where pollution has been
identified through our surveys conducted thus far, we arecontinuing soil and groundwater remediation by soil
replacement, groundwater pumping and soil gas absorption.
We also conduct groundwater monitoring on a regular basis,and have confirmed that the pollution has not spread outside
the sites.

Measures against Dioxins and Asbestos
The aluminum alloy manufacturing facility and its exhaust gas

Dioxins. We have ensured that emissions from these facilities
remain within regulated standards.

123

100

the release of chemical substances specified in the PRTR Law

subject to the Law Concerning Special Measures against

Release and Transfer (tons)

143

We will be committed to reducing the absolute amount of

purification facility at Sumitomo Electric Toyama Co., Ltd. are

Release and Transfer of Chemical Substances
Speciﬁed in the PRTR Law by Year150

We are committed to reducing the release ofchemical substances specified in the PRTR Law

At present, the Sumitomo Electric Group produces no100

products using asbestos.

39

33

2018

2019 (Fiscal year)

0

2014

ReleaseTransfer

・The amounts are calculated in accordance with PRTR Release Estimation Methods
Manual, version 4.1 (2011) by the Ministry of the Environment and the Ministry of
Economy Trade and Industry of Japan.

Release and Transfer of Chemical Substances Speciﬁed in the PRTR Law
Chemical substanceReleaseInto airInto water

Into soil

Into landﬁll

0.0

0.1

0.0

0.0

Phenol

3.8

0.0

0.0

0.0

1,2-dichlorobenzene

2.4

Boron compounds

0.0

0.0

0.0

N,N-dimethylacetamide

1.8

0.0

0.0

Nickel compounds
Toluene12.0

Cresol

2.8

0.0

0.0

0.0

ethanolamine
Xylene1-bromopropane

34 other substances
Total

0.9

0.0

0.0

0.0

0.0

By disposal

Total transfer

Total
amount

0.1

0.0

20.2

20.2

20.3

10.1

10.1

13.9

3.8

0.0
0.0

0.0

0.0

2.8

0.0

8.3

8.3

11.1

0.0

0.0

0.0

0.3

9.7

10.0

10.0

0.0

0.0

0.9

0.0

4.0

4.0

4.9

0.0

0.0
0.0

0.0

0.0

1.8

0.0

0.0

31.7

0.8

0.0

0.0

0.0

2.4

0.0

0.0
0.0
0.0

3.4

0.0

32.5

0.4

5.3

0.1

4.6

7.8
5.3
2.4
0.4

26.8
99.6

4.6

16.6

12.0

0.0
0.7

By sewage

0.0

3.4
4.6

Transfer

Total release

7.8
5.3
2.4
0.4

26.9

100.0

10.2
5.3
4.2
3.8

32.2

132.5
(Unit: tons)

Chemical substanceDioxins

ReleaseInto water

Into soil

Into landﬁll

Total release

By sewage

By disposal

Total transfer

1

0

0

0

1

0

0

0

(Note) Boundary of data collection: Sumitomo Electric + PRTR obligatory companies among its aﬃliates in Japan

Glossary ＊ PRTR Law

65 CSR Report 2020

Transfer

Into airTotalamount1(Unit: mg-TEQ)

Act on Conﬁrmation, etc. of Release Amounts of Speciﬁc Chemical Substances inthe Environment and Promotion of Improvements to the Management Thereof.

Initiatives to Address Water Risks

We set up Water Risk Countermeasure Working Group

understood and measures to address them are taken.

We will place particular emphasis on the following issues

because we recognize that our activities to address them are
insufficient at present:(1) We will establish the governance, business strategy andtarget of our Group for water-related issues in addition to
the reduction of water consumption.

(2) We will diffuse the risks identified in the above-mentioned
survey and examples of the countermeasures and share
information throughout the Group.

(3) We will also manage the suppliers (the supply chain) as
an initiative to respond to water risks.

Water Use Reduction

We monitor the total amount of water withdrawal
While the Sumitomo Electric Group launched activities toreduce water consumption in fiscal 2008, we set a target of
reducing water consumption per unit of sales by 1% peryear (with fiscal 2017 as the base year) in fiscal 2018. We
are now committed to the reduction of water use to meet
the target.

In fiscal 2019, while the total water consumption decreased
year-on-year with the impact of a decrease in production

volume in our overseas bases where the water consumption

Quality

is especially high, water consumption per unit of sales was
reduced by 3.8%.

In terms of water withdrawal by source, we take 87% ofwater from municipal water and 13% from groundwater. As
to the destinations of the effluent, 68% is discharged intosewer systems while 23%, 8% and 1% of our effluent reach
rivers, the sea and other destinations, respectively.

In the course of the reduction activities, we identify waterleakage in our facilities and address it while also working to

reduce water withdrawal through such initiatives as the reuse

Supply Chainof effluent that used to be discharged.

Water Withdrawal and Reduction Rate per Unit of Sales(in Japan and Overseas)
Reduction rate per0

4.9

Water withdrawal(thousand m3/year)

16,00012,00010,000
8,000

0
1
2
3
4
5

3.8

14,601

14,26013,775

8,374

8,104

7,840

5,966

6,227

6,156

5,935

2016

2017
Base

2018

2019 (Fiscal year)

12,381

12,665

12,921

6,466

6,764

6,955

5,915

5,901

2014

2015

Environmental
Preservation

14,000unit of sales (%)

6,000
4,000
2,000

Human Resources

0

Consumption in other countries

GovernanceOn the basis of findings from the above-mentioned risk
survey with Aqueduct, we prepared a questionnaire tounderstand the actual situation of water risks throughout the
Sumitomo Electric Group based on the CDP 2020 water
management indicators. The questionnaire was thendistributed to the 93 production bases in Japan and overseas
selected as the targets for the promotion of environmental
activities to collect information on the risks.
As an overall result, none of the bases were facing any majorrisk that could result in stopping their operation. Accordingly,
we are currently designing measures to avoid risks withpriority given to the risks that are shared by multiple bases
and could have a major impact if they occurred.

reach a level where the actual situation of water risks is

Social Contribution

Development of the Activities on
a Company-wide Scalequestionnaire into the management indicators, we aim toCore
Category

While Sumitomo Electric has used CDP questionnaires for
information disclosure since fiscal 2016, we did not understandwhat water risks exist in the locations of our bases around theworld or take measures to address them until the first half of2017. Therefore, in the second half of the same year, we set an
activity goal of “establishing a group-wide system to ensurethat the production bases around the world independently
understand the current situation of water risk, if any, identify theissues and design and implement measures to address them.”
As the first specific initiative, we set up Water Risk
Countermeasure Working Group with members recruitedfrom divisions and affiliates in January 2018 to establish asystem to promote the unification of the action procedures tobe applied throughout our group.
Next, we evaluated water risks in a total of 184 areas where
our production bases are located in Japan and overseas.
Aqueduct＊ was used as the tool to evaluate the risks indicatedby 12 indicators in total, including water quantity, water
quality, regulations according to local laws and relations withneighboring communities, on a five-point scale. With theresults of this evaluation based on Aqueduct, we identified 32
production bases in Japan and overseas with many high-risk
items and surveyed them through interviews to understand theactual situation. We also conducted a similar evaluation using
Aqueduct in fiscal 2019 and identified one base in Vietnam
where the risk was elevated by three levels, one base in the
US where the risk was elevated by two levels, and two basesin the Philippines and one base in each of China, Indonesia,
Mexico and Brazil where the risk was elevated by one level incomparison with that in fiscal 2018. These findings will be
used in the environmental audits of those bases.

Incorporating the concept of the CDP 2020 waterGroupʼs CSR Activities

Evaluation of Water Risks on a Global Scale

We will promote activities involving the supply chain

Business Outline

The impact of global warming on the global environment has
attracted much attention in recent years and water resource
problems are also recognized as large risks that can affectthe operation of the Sumitomo Electric Group. Institutional
investors and clients require us to respond to the problems
to sustain the operation. In addition to the shortage of watersupply, water-related issues include deterioration of water
quality, flood damage, tightening of relevant government
regulations and relationships with communities in theneighborhood. The Sumitomo Electric Group is working tounderstand the current situation of these issues and taking
measures to address them.

Basis for Management

Future Initiatives

Basic Approach

Consumption in Japan

Reduction rate per unit of sales(Note 1) Water withdrawal is calculated as the sum of the withdrawal of city water, industrial
water and groundwater.

Glossary ＊Aqueduct

A tool developed by the World Resources Institute (WRI) to evaluate water risks in various parts of the world.
Water risks to the bases located on a world atlas are quantitatively evaluated on a ﬁve-point scale.

CSR Report 2020

66

Expansion of Environmentally Conscious Products
Expansion of Environmentally
Conscious Products

We are actively promoting assessment anddevelopment of environmentally conscious products
Along with the reduction of environmental impact from ourbusiness activities, Sumitomo Electric is striving to increase

environmentally conscious products as an initiative stated its
environmental policy.

Our products are assessed to determine their levels of socialand environmental contribution and classified into, forstrive to penetrate the market with them.

By the end of fiscal 2019, a total of 313 items have beenregistered as Eco-products. The sales ratio in fiscal 2019was 64%.

《 Anti-Global Warming Products 》

In this system, we register the Eco products that especiallycontribute to the reduction of CO2 emissions in the
production stage or when they are used by customers, andcalculate the reduction effect.
The products contributed to the reduction of CO2 emissions
by a total of 144 thousand tons in fiscal 2019.

example, Eco Mind products, Eco-products and anti-global
warming products based on the levels. The assessment
results are also used for development of new products.

《 Eco Mind Products 》

We perform environmental assessment of products when

Percentage of Eco-Products in Sales and Contribution to
the Reduction of CO2 Emissions
Percentage of Eco-products in sales (%)

7060

developing new products, as well as when making major

50

undergone product assessment are registered as Eco Mind

30

design changes to existing products. The products having
products in the Sumitomo Electric Group.

By the end of fiscal 2019, a total of 1,328 items have beenregistered as Eco Mind products.

40

44

53

61

59

126

114

61
131

64

Contribution toemission reduction(thousand tonsCO2/year)

160

144

140
120
100

20
10
0

63

78

80
60
40

《 Eco-Products (Eco Symbol Program) 》

20

Among Eco Mind products, the products with particularly
outstanding environmental features are examined inaccordance with our Eco Symbol Program, which is based on
ISO14021, and those that meet the criteria are certified as
Eco-products. Through this system, we aim to promote

development of environmentally conscious products and

CSR
VOICE

Environmentally friendly products

High-eﬃciency PCD cutter for aluminum alloys

ALNEX™ ANX Type

0

2014

2015

2016

2017

2018

2019

(Fiscal year)

・ Calculation method
The percentage of Eco-products in sales is calculated as the value of the shipments* ofthe products certiﬁed Eco-products divided by the total value of shipments*.
(* Shipments are those from manufacturing departments in Japan. However, they exclude
shipments from electronic conductor departments, which mainly work to supply
intermediate goods within the Group.)

Cutting tool for aluminum alloys, which areessential for reducing the weight of vehicles,with even higher eﬃciency and longer life
High-efficiency PCD cutter foraluminum alloys “ALNEX™ ANX Type”
is a cutting tool released in 2019.

While demand for hybrid cars andelectric vehicles is growing in

expectation of a low-carbon society,aluminum is used in many of the partsof such vehicles because the metal islight in weight and high in thermal

conductivity. This product has beendeveloped to process aluminum more
efficiently with longer life.

ALNEX™ ANX Type features a feed

Keiji Kinoshita

Milling Tools Development
Group
Tool Designing Department
Sumitomo Electric Hardmetal
Corp.

speed 2.8 times faster than that of conventional tools. This

enables an equal or higher number of aluminum products tobe processed with fewer machines than before. While theimprovement of efficiency results in the use of less energy,
the extension of the tool life, which was achieved by theunique alloy production technology we have developed, also
helps save resources.

Moreover, we have in place a system to collect the cuttingedge made of diamond from customers and regrind andreturn it to them for the recycling of resources.

67 CSR Report 2020

Biodiversity

items of the Action ECO-22V Campaign to contribute to the

We work to understand the big picture of environmental

protection through the development of products andenvironmental burdens accompanying business activities havethe implementation of conventional initiatives in cooperation

burdens and reduce them with the basic idea that all of thetechnologies that can help protect the ecosystem, as well as

an impact on the biodiversity. In addition, we promotewith local communities as presented in the example below.

initiatives that can help protect the biodiversity throughout theParticipation in a committee topromote the restoration of Koya Pond

Exampleof local
activities

expansion of environmentally conscious products.

(continued from April 2008)

Action Policy for the Future
respect for the public good,” as a key principle, the Sumitomo
Electric Group works to fulfill its social responsibility forsustainable development. To this end, we will expand

environmental conservation activities across the Group including
the reduction of GHG emissions to prevent global warming aswell as the reduction of waste to control the expansion ofwaste landfill sites and thereby secure wildlife habitats.

Financial items(million yen)

Non-ﬁnancial items
Economic eﬀect(million yen)

Change factors in FY2019(in Japan)(million yen)2017 2018 2019 2017 2018 2019 2017 2018 2019
Investment inenergy saving

Reduction ofenergy cost

(Note 1)

(Note 1)(thousand tons-CO2e/year)

900

708

0

268

351

300
150

2018 Change due Change due Actual

Waste
disposal cost

(Note 2)

Sale ofvaluables materials(Note 3)(Note 3)14

1,294 1,240 1,302

69

43

72

50

37.8

0

1.5
31.1
▲8.2

20

2018 Change due Change due Actual
to boundaries
change934

to saleschangechange2019 (Fiscalyear)

We have set the target of
reducing the amount of waste
per unit of sales by 2% from theﬁscal 2017 level and takevarious resource-saving
measures. To reduce theamount of waste, we arepromoting the conversion ofwaste into valuable materials.
While the amount of waste has
increased due to the suspensionof imports of recyclable waste
by China, we will continue theactivities to sell valuable
materials produced from waste
through the concentration ofwaste liquid, etc. as a method to
reduce the amount.

Cost of environmental organization,
ISO 14001 registration andmaintenance, etc.

ISO 14001 is the core of ourenvironmental management
activities, and the certiﬁcation isrequested by customers.
We consider cleanup of theneighboring areas as a basicsocial activity, and will continue
our commitment tocommunication with local
communities through thisinitiative.
We continuously restore thecontaminated soil andgroundwater identiﬁed in ourfacilities.

Cost ofsocialactivities

9

8

9

Cleanup of areas outside company
sites, external environmental
education, etc.

Cost ofenvironmental
remediation

8

11

9

Restoration of contaminated soil
and groundwater

Environmental
Preservation

859

Human Resources

10
0

975

year)

(excluding valuable materials)(thousand tons/year)

30

02019 (Fiscal(Note 4)

Amount of waste

40

18changeSupply Chain

Investment inresource saving
and recycling

to saleschangeWe set no increase in CO2emissions from the FY2017 levelas a KPI for ﬁscal 2022. To
achieve it, we have deﬁned thetarget of reducing energy
consumption per unit of sales by
2% from the ﬁscal 2017 leveland make various energy saving
eﬀorts. These activities are also
important for the reduction ofenergy cost.
The knowledge learned throughthe activities is also introduced
into overseas Group companies.

Quality

450

723

627
▲118

to boundaries
changeCost ofmanagement
activities

37

600

0

Waste
reduction(Note 4)GHG emissions

750

2,630 2,857 1,651

Strategy/
opportunity and riskSocial Contribution

ExpenseCore
Category

Environmental Accounting

Groupʼs CSR Activities

In this initiative, as amember of the “Association
to Preserve and Grow
Nature of Itami, we
engage in the weeding andremoval of exotic plants
around Koya Pond together
with citizens to restore theoriginal ecosystem with arich natural environment.

Based on the Sumitomo Spirit, which sets “mutual prosperity,

Investment

Business Outline

businesses of the Sumitomo Electric Group, including theReduction ofgreenhouse gas（GHG) emissions

Basis for Management

We have added the protection of biodiversity to the action

Basic Approach

Governance

Boundaries of tabulation: Sumitomo Electric + aﬃliates in Japan(Note 1) Only the amount of investment in the activities mainly aimed at energy saving among the activities certiﬁed as energy saving activities by the Energy Saving Oﬃce of the Safety & Environment
Department is subject to the calculation (the activities mainly for the purposes other than energy saving, such as renewal of aging facilities and peak cut, are not covered). The economic eﬀect
includes that of the energy saving activities in which no investment has been made.
(Note 2) The amount of investment does not include investment related to eﬃcient use of resources but covers investment for reduction of waste generation and recycling.
(Note 3) The cost is calculated based on payment to the waste disposal contractor. Metals are not included in the calculation of either cost or economic eﬀect.
(Note 4) Change due to boundaries change: Emissions or amount of waste in ﬁscal 2018 from the boundaries of collection newly added or excluded in ﬁscal 2019 (no boundaries were newly added or
excluded in this ﬁscal year).
Change due to sales change: [Emissions or amount of waste in ﬁscal 2018 from the boundaries of collection for ﬁscal 2019] (Sales in ﬁscal 2019 / Sales in ﬁscal 2018 - 1)
Actual change: Calculated by subtraction

CSR Report 202068

Corporate Governance
Basic Approach
Under our corporate philosophy of the Sumitomo Spirit and theSumitomo Electric Group Corporate Principles, our group
maintains its unwavering basic policy of contributing to society
through our fair business practices. While adhering to this basic
policy, in order to seek sustainable corporate growth and toincrease corporate value over the mid-to-long term, we believethat it is critical to ensure transparency and fairness ofmanagement activities through appropriate corporate
governance, as well as to draw up and implement a growthstrategy fully utilizing our management resources, with the key
word being innovation. We will be committed to further
enhancing our corporate governance in accordance with thefollowing basic ideas:(1) We will develop an environment in which shareholders can
exercise their rights appropriately.

Sumitomo Electric Groupʼs corporate governance structure
General Meeting of Shareholders
Appointments / dismissals

Board ofDirectors
Chairman of
the Board of
Directors

Management
Conference

President(5) In order to contribute to sustainable growth and increase
corporate value over the mid-to-long term, we will engage
in constructive dialogue with shareholders to a reasonable
extent.
We have established Corporate Governance Guidelines setting
forth our basic ideas and policy concerning corporate
governance, which are made available on our website※.
We also implement all of the principles in the Corporate
Governance Code.

Outline of the Structure
Sumitomo Electric has employed the system with the audit &supervisory board in consideration of the contribution of audit &supervisory board members and the Audit & Supervisory Board
to ensuring sound business management. The Board of
Directors, the business execution system, audit & supervisoryboard members and the Audit & Supervisory Board arecommitted to fulfillment of their respective duties in order toachieve sustainable growth and medium- and long-term
increases in the corporate value based on the basic philosophy.
In addition, three outside directors are appointed to adopt anexternal perspective with the aims of further strengthening thesupervising functions of the Board of Directors and enhancing
the transparency and objectiveness of the business

69 CSR Report 2020

Web

Audit &
Supervisory
Board
Members

Accounting
Audit

op

Sales UnitsAﬃliates in Japanand Overseas

R&D Unit

Aﬃliates in Japanand Overseas

Production UnitsAﬃliates in Japanand Overseas

Accounting
Auditors

CooperateCo(3) We will disclose corporate information appropriately andensure transparency.
(4) We will emphasize the board of directors functions tomake decisions on basic policy, including strategies, as wellas to supervise management. We will also focus onorganizing systems and operating the Board of Directors toensure the effectiveness of such functions. In respect ofexecutive operations, we have introduced an executive
officer system and a business unit system, for the purposeof clarifying authority and responsibilities, and of
establishing a flexible system to execute operations in
response to changes in the business environment. From aviewpoint of ensuring sound management, we commit tostrengthening audits by audit & supervisory board members
and adopting a supervisory system under which
independent outside audit & supervisory board members
and full-time audit & supervisory board members work with
our internal audit department and accounting auditors toensure the lawful and proper management.

Audit &
Supervisory
Board

Audit

er

at

Audit

e

Cooperate(2) We will take the interests of shareholders and otherstakeholders into consideration, and will appropriately
cooperate with them.

management. We also select three outside audit & supervisoryboard members with various specialized knowledge andmultifaceted views so that outside audit & supervisory board
members occupy the majority of the Audit & Supervisory
Board, which aims to reinforce the monitoring system for the
purpose of ensuring lawful and proper management.

Internal
Auditing
Department

Cross-Sectional
Risk Management
Activity etc.

Risk Management Committee
Corporate
Staﬀ Group

Compliance Committee
Corporate Environment Committee
Information Management Committee
CSR Committee

The Board of Directors andthe Business Execution System《 Functions and Operations of the Board of Directors 》
While the board of directors of a company with an audit &supervisory board serves functions to make decisions on andsupervise business execution, the Board of Directors of
Sumitomo Electric deliberates only important issues amongindividual subjects, such as major investment items, and focuseson the medium-term business plan, annual plans based on it andquarterly follow-ups of the plans, so that it can appropriately
perform the function to decide basic matters concerning thedirection of the Company, as well as the supervising function.
Independent outside directors are appointed in the Board of
Directors as mentioned above to ensure multifaceted andsufficient discussions in the meetings, in which independent
outside audit & supervisory board members are also provided
with opportunities to present their opinions actively.
As to supervising function of the Board of Directors, while we
respect opinions of the independent outside directors andother independent outside officers to ensure the independence
and objectiveness, we have set up the Nominating Advisory
Committee and the Compensation Advisory Committee, which
are both chaired by an independent outside director and madeup of a majority of independent outside officers, to enhance theeffectiveness. The Committees give advice when the Board of
Directors appoints candidates for directors and audit &supervisory board members and makes a decision on thecompensations of directors.
Sumitomo Electric holds monthly meetings of the Board of
Directors as well as extraordinary meetings when necessary.
In the meetings, which are chaired by Chairman, the Board of
Directors deliberates and takes decisions on the matters※ For the details of the Corporate Governance Guidelines, please see the following page.

https://global-sei.com/company/pdf/governance.pdf

① Operation of the Board of Directors and advisorycommittees for the nomination and compensationof executives, directors, etc.

Ensuring Appropriateness ofFinancial Reporting

Governance

CSR Report 2020

Environmental
Preservation

We have established the Financial Reporting Internal Control
Committee, chaired by the President, and an organization topromote control in the Corporate Staff Group. Under their policy,
guidance and support, we promote development and proper
operation of the internal control system in each division andaffiliate in accordance with the Financial Instruments andExchange Act, as well as the assessment, audit criteria andenforcement criteria specified by the Financial Services Agency.
Thus, we are committed to further improving the systems toensure appropriateness of financial reporting. The Internal
Auditing Department assesses the effectiveness of the internal
control system of the whole group for each fiscal year. Basedon the results of such assessment, the department is required
to compile an internal control report to be submitted to the
Financial Services Agency and obtain the approval of the Financial
Reporting Internal Control Committee and the Board of Directors.

Human Resources

The findings showed that the Board of Directors basically plays
its role in “deliberating and determining on the basic
management policy and other important corporate issues” and“supervising the business execution of directors” through its
activities including active discussions in deliberation on
important matters and at the time of quarterly performance
reporting and reporting on the progress of the improvement of
the internal control system. On the other hand, as the futurechallenges, we will continuously examine the subjects to be
discussed in the Board of Directors while taking a medium tolong-term perspective and a group-wide perspective. We will
also strive to increase opportunities for risk analysis andassessment before discussions in the Board of Directors toenhance the discussions of important matters.
From 2019, outside directors and outside corporate auditors
have dialogue with inside directors on the results of thisanalysis and assessment. In 2020, while making discussions in
a similar way, we will continue to promote measures to further
enhance the effectiveness of the Board of Directors.

Supply Chain③ Role of the Board of Directors

Quality

The findings showed that the increase in outside directors andother structural changes have enabled the Board of Directors
to make more active and multifaceted discussions and that thestructure and other aspects of the Board of Directors are
generally appropriate in terms of the number of members andthe overall balance of their knowledge and experience. In the
future, while also considering social trends and other issues,
we will continue to examine the ideal state of the Board of
Directors in terms of structure and other aspects to contributeto the sustainable growth of Sumitomo Electric and mid- tolong-term improvement of the corporate value.

As to the audit & supervisory board members and the Audit &Supervisory Board, as mentioned above, the majority of theaudit & supervisory board members are independent outside
audit & supervisory board members with various specialized
knowledge and multifaceted views. These members of theboard, along with full-time audit & supervisory board members
and dedicated staff to audit & supervisory board members, arein charge of monitoring in cooperation with the Internal
Auditing Department and accounting auditors to ensure lawful
and proper corporate management.
Five audit & supervisory board members, consisting of two
full-time members of the board and three outside members of
the board including a female one, constitute the auditing
system to audit the business execution of directors. The Audit& Supervisory Board establishes audit plans and policies, inaccordance with which each audit & supervisory board
member fulfills his role, as assigned by the Audit & Supervisory
Board. Specifically, audit & supervisory board members attend
important meetings including those of the Board of Directors,
conduct hearings with the directors, Internal Auditing
Department and other employees regarding their duties,
inspect important authorization documents and visit majorestablishments to conduct audits. Audit & supervisory board
members also receive reports from other members of theboard regarding their audit status, and exchange information
with the accounting auditor when required.
The section in charge of internal audits is the Internal Auditing
Department, which surveys any problems and makes proposals
on improvement to ensure proper and efficient businessperformance through audits, including on-site surveys, of ourGroup companies and other establishments. The department
also collaborates with audit & supervisory board members andaccounting auditors on an as-needed basis in the audits.
The accounting audits and internal control audits to be
conducted by accounting auditors are outsourced to KPMG
AZSA LLC.

Social Contribution② Structure of the Board of Directors

Auditing and Supervision Systems

Core
Category

The findings showed that the operation of the Board of
Directors has been improved through the clarification of key
points in the handouts for discussions, the review of guidelines
for explaining the issues to be discussed and other efforts toensure that sufficient time for discussions can be set aside anddiscussions can be further enhanced. In the meantime, it was
found that efforts have been made to enhance measures to help
outside officers improve their understanding of our businesssuch as the provision of outside directors with opportunities toindividually talk with the general managers of business units.
The findings also showed that the operation of the Nominating
Advisory Committee and the Compensation Advisory Committee
and the reporting of the discussions to the Board of Directors
have been conducted generally properly. We will continue towork for the improvement of the operation in the future.

To clarify authority and responsibility in the business execution
system and establish a flexible system that can respond tochanges in the business environment, Sumitomo Electric adopted
the Executive Officer System and the Business Unit System.
Authority to execute business operations has been transferred
to Business Units while their responsibility has been clarified,
and to establish an internal check function, our corporate
regulations specify the scope of authority of each of the Business
Units including the Corporate Staff Group, responsible personnel
for the execution and appropriate business procedures.

Groupʼs CSR Activities

The Board of Directors started to analyze and evaluate its
effectiveness and disclose a summary of the results in fiscal 2015.
As an initiative for fiscal 2019, it conducted a questionnaire
survey of all directors and audit & supervisory board members
including outside officers in March 2020 and made discussions
based on the results at a Board of Directors meeting held in
May of the same year. The results of the analysis andassessment and future initiatives are summarized below:《 Business Execution System 》

Business Outline《 Effectiveness Analysis and Assessment of the Board of Directors 》

Basis for Management

mentioned above, makes decisions on the basic policy of theinternal control system and supervises the development andoperation of the system. There are currently 12 Directors in the
Company, who are comprised of 9 Executive Directors andthree outside Directors not involved in business execution, andone of them is a female outside Director. For fiscal 2019, 11
Directors (excluding three outside Directors) received 741
million yen in total.

70

Risk Management
Basic Approach

Risk Management Activities

The Sumitomo Electric Group identifies, analyzes andassesses business risks, which include the factors that preventthe implementation of its business activities or achievementof management goals and strategies, as well as the factorsthat potentially have adverse impact, and then seeks to
reduce and minimize them at a reasonable cost and withreasonable efforts.
With respect to cross-sectional risks common to all divisions
and affiliates in the Group, the relevant corporate staff
divisions, as well as company-wide committees organized by
officers in charge, identify, analyze and assess the risks
according to their duties, and then take measures tomitigate them.
The divisions and sales and R&D groups individually identify,
analyze and assess the risks associated with their business
operations, and then take measures to reduce them.

Basic Policy of Risk Management
Risk management is performed based on the significance ofthe risks determined in consideration of the following issues:
●

●
●

●
●

Impact on business performance, maintenance of quality
and safety
Social responsibility to ensure stable supply
Maintenance of favorable relations with stakeholders
such as customers, suppliers, shareholders/investors,
local communities and employees
Continuous compliance with laws and corporate ethics
Statements in the Sumitomo Spirit, the Sumitomo ElectricGroup Corporate Principles and the Sumitomo ElectricGroup Charter of Corporate Behavior

Risk Management System
The Sumitomo Electric Group holds a meeting of the Risk
Management Committee, which controls overall risk
management activities, in conjunction with a meeting of the
management conference. The Risk Management Steering
Committee is responsible for actual implementation under the
Risk Management Committee, and its tasks include formulationof risk management policies, establishment of task forces at thetime of an emergency, collection of information and planningand implementation of risk management education.
The Compliance & Risk Management Office serves as theorganizer for these committees.

Risk Management System
Board of Directors

Company-wide
Committees

Management Conference

Compliance Committee

Risk Management Committee

CSR Committee

Risk Management Steering Committee

Public Relations Committee

Compliance & Risk Management Oﬃce

Security Trade Control
Committee

Corporate Staﬀ Group

Corporate Environment
Committee

Risk manager
Legal, Public Relations, Human Resources, Accounting,Information Systems, Procurement, Logistics, Security Trade Control,
Safety & Environment, Plant & Production Systems Engineering

Business Units, Sales Units,
Research & Development Unit

Divisions

Risk manager

71 CSR Report 2020

Aﬃliates

Risk manager

Risk manager

Risk management activities of the Sumitomo Electric Group arebased on taking inventory of risks that is conducted by eachdivision and each affiliate. In the inventory, which is conductedannually, the signiﬁcance of each of the risk items isdetermined by scoring its severity, frequency of occurrence andother factors. Measures to deal with any significant risks are
discussed and taken.
Annual results of the risk inventory are shared with executives
and the corporate staff divisions. With mutual cooperation
between them, group-wide risk management activities arepromoted steadily.

《 Creation and Management of a Risk Heat Map 》

The Sumitomo Electric Group is making efforts to establish amore efficient mechanism for risk management so that it can
respond to the expansion of the business fields and changes inthe external environment effectively. We compiled a databaseof the results of risk inventory and information on the identified
risks, as well as the results of operational audits and othermonitoring activities, and created a risk heat map based on the
database to visualize the risks to each of the divisions andaffiliates. This map enables each of them to take measures toaddress the items with higher risk levels preferentially andenhance the efficiency and effectiveness of the risk
management activities.

Initiatives for Business Continuity《 Business continuity in the event of a large-scale natural disaster 》
Sumitomo Electric promotes business continuity management(BCM) for continuous improvement of Business Continuity Plans(BCPs) in Japan and overseas to ensure that our importantbusinesses can be continued even in the event of a large-scale
natural disaster, such as an earthquake, and that we can swiftly
resume operations when our operations are interrupted. We
review the BCPs periodically, verify the effectiveness of theemergency response plan and take inventory of supply chain
risks every fiscal year.
Moreover, to further enhance the effectiveness of the BCPs, we
provide BCP training to risk managers once a year to reinforce
our business continuity capabilities.

《 Business continuity in the event of an infectious disease outbreak 》
The Sumitomo Electric Group formulated the guidelines foraction plans to address new influenza in 2008. Each of thedivisions and Group companies in Japan has established a BCP
for infectious diseases and promoted the establishment of acrisis management system.
Amid the COVID-19 pandemic, we continued operation while
thoroughly taking measures to prevent the spread of infection
including the active use of homeworking and other styles ofteleworking. Our manufacturing divisions have also maintained
operation while making utmost efforts to ensure that 3Cs(closed spaces, crowded places and close-contact settings) areavoided in the operation and giving the top priority to thehealth and safety of employees.
Based on the knowledge acquired from the COVID-19
pandemic, we will further enhance the effectiveness of BCPs forcoping with infectious diseases and also promote thedevelopment of BCPs in the overseas subsidiaries to further
reinforce our business continuity capabilities.

《 Continuous Implementation of Group-wide Joint Emergency Drills 》
The Sumitomo Electric Group enhances disaster awareness of
employees by implementing joint emergency drills to conduct
the drills in Group companies at the same time twice a year
(in the daytime and at night). Our production facilities carry out

The Sumitomo Electric Group continuously improves theinformation management system and revises rules to enhancedivisions and affiliates. Regarding the use of social media, wehave also established a social media policy, which specifies ourbasic approach to its use, as well as social media guidelines,
which provide specific issues to be noted. The policy andguidelines serve to raise the awareness of employees. We willcontinue to promote information management of the Group by

Sumitomo Electric has set forth internal rules on security tradecontrol to ensure compliance with export control regulations
aimed at international security, and established an export
control system headed by a representative director.
Our export activities are conducted after proper screening ofindividual business transactions and obtainment of necessary
export licenses such as comprehensive export license.
Our employees and persons concerned are provided withposition-based training, as well as periodical training, which deals
with the latest cases, and training at the time of their appointment
to the position, so that they are aware of their responsibility forsecurity trade control and obtain necessary knowledge.
We also conduct audits in the Company and its affiliates inJapan and overseas constantly to monitor export activities, andshare information between different divisions within the Company
and between affiliates through various committees to reduce therisks in the security trade control activities of the entire group.
Record of Various Training Sessions in FY2019
Persons who
No. ofTarget ofneed to receive
the training sessions
the training

No. ofparticipants

Achievement
rate

Main content

19

150

150

100%

disseminating the rules.

Exportcontrol
sections

33

1,247

1,247

100%

Export control
practice

The Sumitomo Electric Group possesses personal information ofGeneralemployees〈e-learning〉―

approx. 8,960

6,530

74%

Outline of export
control andinternal rules

increasingly becoming important to manage personal

Domestic
aﬃliates

4２4

２３ companies(82 persons)96%

Outline ofexport control

relevant regulations such as the EU General Data Protection

Overseasaﬃliates―

Responsible
134
persons

６３

47%

―

165

―

《 Protection of Personal Information 》

more than 200,000 Group employees in Japan and abroad. It is
information partly due to the global trend to tighten theRegulation (GDPR). To keep private information and proprietary

Working staﬀ

Outline of export
control and issues
to be noted inforeign countries

Social Contribution

Staﬀ incharge ofclassiﬁcation

Core
Category

improving the system in domestic and overseas affiliates andTasks on how toclassify goods
and technologies

enhancing the internal training program designed forGroupʼs CSR Activities

the mechanism that prevents information leakage in each of its

Security Trade Control

Business Outline

Protection of Personal Information,and Information Security

Basis for Management

evacuation drills as well as inspection of places where
hazardous materials are used and simulation of the initial
response to emergency situations. In the meantime, drills of
information transmission and sharing are also implemented byestablishing headquarters of countermeasures with the aims ofgrasping disaster information promptly, reporting it accurately
and promptly to executives and sharing the information among
the Group.

information confidential, we are taking utmost measures such as
Protection Policy, the development and dissemination ofinternal rules, the conclusion of contracts with the recipients of
information, the strengthening of information security(encryption, etc.) and the development of a system to report
infection with computer viruses, loss of a cellular phone, etc.
We have set up an ICT Management Committee in the fivecountries of China, Thailand, Indonesia, Malaysia and theUnited States as the basis of our global expansion, and worked
to enhance information security measures through theCommittee. This commitment, which is in its seventh year, hascomputer viruses and the implementation of information
security training.

As measures to prevent the leakage of information on trade
secrets and other important management assets, we haveintroduced AI-based anti-malware software to enhanceprotection from unknown malware and a mechanism for the

network devices, in addition to conventionally used antivirus
software and intrusion prevention systems (IPS). In themeantime, while cloud services are offered online these days
and they are convenient, their use involves a concern about

information leakage as a new risk. We have set up a system toWith respect to the corporate structure, we have established acommunication and response system, with SEI-CSIRT(Computer Security Incident Response Team) playing a central

role, to promptly identify and respond to any incidents relating
to information security in our Group companies.

CSR Report 2020

Governanceassess the services before the introduction.

Environmental
Preservation

detection of any illicit acts using log information of servers andSumitomo Electric respects intellectual property rights (IPRs). With
the recognition that they are an important issue for our business
management, we are actively committed to the appropriate
management of technical know-how and internal data as well as
enhancement and use of IPRs such as patent rights and design
rights. At the same time, we respect the IPRs and trade secrets ofothers and strive to pay scrupulous attention to them.
To set up a structure for the commitment, we have developed arule on the handling of intellectual property and trade secrets,and established an organization in the Intellectual Property
Department to provide business units and R&D units in the
Sumitomo Electric Group with the necessary support, such as
management of inventions, investigation of prior arts and IPRs ofother companies, promotion of technology standardization
activities, and formulation of strategy and response from theperspective of intellectual property-related laws and regulations.
Furthermore, at IP strategy meetings, strategic IP committee
members of business units and development units plan andimplement activities, verify the progress and results, and correct
any inappropriate points. The activities are promoted throughconcerted efforts among respective divisions, R&D units and theIntellectual Property Department based on the PDCA
(plan-do-check-act) cycle.
To promote and improve the IP activities, we operate an invention
reward program, organize IP training sessions that match theexperience and level of proficiency of each employee, and publish
related in-house newsletters. We also hold an Intellectual
Property Right and Standardization Convention every year tocommend excellent IP activities and share knowledge.
Through these efforts, we work to increase the value ofintellectual property in the Group and promote the generation ofbusiness opportunities and the reduction of IP risks.

Human Resources

led to such results as the reduction of the risk of infection by

Respect for and Protection ofIntellectual Property

Supply Chain《 Strengthening of Information Security Measures 》

Quality

the formulation and announcement of our Personal Information

72

Compliance
Efforts to Pursue Fair Business
Activities Worthy of Societyʼs Trust
The Sumitomo Electric Group believes that compliance,
which represents both complying with laws and regulations
and acting in accordance with corporate ethics, comprises
the backbone of its management and forms the absolutebasis for its continued existence and development. In light of
the recent trend of various compliance items, including
competition laws, prevention of bribery, trade control rules
and quality data issues, and under the principles of theSumitomo Spirit, which values doing your sincere best not
only in business but also every aspect of your life, placing
prime importance on integrity and sound management andnot pursuing immoral business, we will continue to make all
efforts to ensure that all corporate activities are conducted
fairly and honestly and can be trusted by society.

Organization That Supports Complianceand Its Structure

and monitor the progress of compliance activities.
Sales Units and Automotive Business Unit respectively havean internal organization dedicated to compliance (Sales
Compliance Office and Automotive Compliance Office).

《 Compliance Steering Committee 》

At present, our legal bases are composed of more than 70
members in Japan, China, Thailand, Vietnam, the UK,

Germany and the US. They are brought together from aroundthe world to hold a periodical meeting of the Compliance

Steering Committee (CSC) roughly twice a year. At the CSC
meeting, the members discuss various issues related tocompliance from a global perspective and determine thedirection of the activities, the work schedule and othermatters to disseminate best practices in the world across theSumitomo Electric Group.

CSR
VOICE

《 Compliance Committee 》

Sumitomo Electric Group has established the Compliance
Committee, chaired by the President, as an organization thatdesigns and promotes measures necessary to develop andfurther strengthen the compliance system and holds its
meeting roughly four times a year. The Committee engages invarious activities, including identification and analysis ofgroup-wide and overall compliance risks, monitoring of theimplementation of programs for the compliance items andinterviews with divisions and Group companies concerning
their activities to comply with laws. Compliance & Risk
Management Office and Legal Department serve as theorganizers of the Committee.

Structure of the Compliance Committee
Chairperson: President
Vice Chairperson: Senior Managing Director
Committee members:

Attendants:

Senior Managing Director (1 person)

Audit & Supervisory Board Member

Managing Director (1 person)

General Manager of Oﬃce ofAudit & Supervisory Board Members

General Manager ofCompliance & Risk Management Oﬃce
General Manager of Legal Department
General Manager of
Human Resources Division
General Manager ofInternal Auditing Department

Organizer:
Compliance &Risk Management Oﬃce
Legal Department《 Compliance & Risk Management Office 》

While planning and coordinating overall compliance activities
in the Sumitomo Electric Group, Compliance & Risk
Management Office plans and implements relevant activities
including the development of a system and organization oftraining for compliance with competition laws and preventionof bribery. The office also operates the whistle-blowing
system (Speak-Up System) of the Group. Led by the General
Manager, the office is composed of members including
employees from Corporate Staff Group such as Legal
Department, Human Resources Division and Internal Auditing
Department as well as persons in charge of compliance tasks
in Business Units and Sales Units. The responsible persons forcompliance activities at overseas legal and compliance bases
concurrently serve as the members as well. A compliance
meeting is held every month to share relevant information

73 CSR Report 2020

Compliance Steering
Committee
Michael L. Whitlock

Assistant General Counsel
Legal Department
Sumitomo Electric U.S.A. Holdings, Inc.

I am responsible for supporting compliance program in
the Group companies in the Americas including the US,
Mexico, Canada, Brazil and Paraguay. The legal basecovering the Americas, to which I belong, is located in
Torrance, California. I handle the daily complianceinquiries, oversee consultation and reporting in the
Speak-Up System, from Group companies in theAmericas and also provide training for the companies.
In addition, I review the compliance structure of theSumitomo Electric Group and its long-term strategy forcompliance at the Compliance Steering Committee(CSC). CSC meetings provide the members of theGroupʼs legal bases with precious opportunities to meeteach other face-to-face and coordinate their global
compliance activities. In April this year, we held an
online CSC meeting due to the COVID-19 pandemic
and I reported the guidelines of Global Antitrust andCompetition Policy, non-poach agreement enforcement
and other items.
These jobs arechallenging, but I
always put forth mybest effort while
keeping the Sumitomo
Spirit in mind.
Screenshot of the online CSC meeting

Compliance Activities《 Code of Conduct 》

The Compliance Committee established and issued Code of
Conduct, which serves as guidelines setting out the standardsof conduct expected of each of us and helping us conductbusiness with integrity, based on the Sumitomo Spirit with theapproval of the Board of Directors in April 2018. The Code of
Conduct is basic rules on compliance commonly applied to
all Group companies across the world. In addition to legal
compliance, it specifies the basic policy on fair competition,

Newly promoted personnel

approx. 400 (Feb. 2020)

New employees of Sumitomo Electric

approx. 240 (Apr. 2019)

Managers of Sumitomo Electricand its subsidiaries in Japan

approx. 6,500 (Apr. - Jul. 2019)《 Speak-Up System 》

65

2017

24

50

74

2018

31

63

94

2019

25

94

119

※Note that consultations were also requested at contacts established individuallyby Group companies in addition to the consultations above.

Priority Matters《 Compliance with Competition Laws 》

The Sumitomo Electric Group prioritizes global competition
law compliance as the most important compliance activity
and has taken measures to eliminate, and prevent a
recurrence of, cartel and collusion including suspicious acts
within the Group. These measures include the formulation of
the Rules for Compliance with Competition Laws in June
2010, which contain a provision that restricts contact withcompetitors only in the cases with legitimate businessreasons, and mandatory compliance training (including
e-learning training) organized for sales staff and other
employees around the world. In fiscal 2019, we also adopted
Global Antitrust and Competition Policy, and promoted
e-learning training on competition laws, which was launchedin 2014 and now provided for the fourth time, for our Group
employees all over the world.

《 Prevention of Bribery 》

CSR Report 2020

Governance

The Sumitomo Electric Group introduced an anti-bribery
program in April 2013 to enhance its anti-bribery compliancesystem and has developed it on a global scale. In response to
the recent tightening of anti-bribery regulations on domestic
and foreign public officials in the US, Europe and emerging
markets, this program has established anti-bribery rules,
including the prohibition against bribery and prior approvaland ex-post report on gifts, hospitality and donations. It also
requested each division and each Group company to appointa bribery prevention manager to implement the rules.
Five years have passed since the anti-bribery program
started. Based on environmental changes during that period,
we revised it in January 2018 to focus on high risk in giving
inappropriate hospitality. We have also distributed a bribery
prevention manual to the bribery prevention managers, who
are in charge of the operation of the program, and provided
them with detailed training.
We will keep working to maintain and enhance the global
bribery prevention system through collection anddissemination of relevant information, as well as monitoring(including the check of agents and other interested persons
outside the Company), improvement of the program and theoperation manual, training and other activities.

Environmental
Preservation

The Sumitomo Electric Group established the Speak-Up
System as a system to identify any compliance-related issues
at an early stage and resolve them by ourselves in a prompt
and proper manner. Specifically, we set up contacts for
consultation and reporting not only internally but also
externally (by appointing a specialized service provider and alaw firm), and the issues reported through this system areaddressed with immediate investigation to take corrective
action and prevent recurrence where necessary. The contacts
for consultation and reporting have been established to allow
any employees of Group companies in and out of Japan aswell as other interested persons to access. We present theoutline of the system at the time of various internal training
sessions and also disseminate it through monthly in-house

Total

Human Resources

43（Dec. 2019）54

Supply Chain

Oﬃcers (including executive oﬃcers)

External contacts

11

Quality

Number of attendants (period)

In-house contacts

Social Contribution

Target of the training

FY
2016

Core
Category

Compliance training

Targets of the Training and Number of Attendants (Period)

Number of Consultations at the Contacts of the Group-wide System

Groupʼs CSR Activities

To check compliance risks, ensure implementation of
preventive measures and develop and enhance awareness ofcompliance, the Compliance Committee organizes regulartraining seminars for officers and managers every year. New
employees and newly promoted personnel are also provided
with position-based training seminars. In addition, we
launched an e-learning system that enables compliancetraining to be given online in fiscal 2019 and the program will
be offered in 26 languages to our Group companies acrossthe world. (It was available for approximately 18,500 persons
as of the end of fiscal 2019). The subjects selected for the
training program include the Code of Conduct, compliancewith competition laws, prevention of bribery and preventionof quality data falsification and other items that areconsidered to be necessary andimportant for business
operations in the Sumitomo
Electric Group. We also
disseminate the Speak-Up
System mentioned below in the
training seminars.

newsletters, Code of Conduct, our website, intranet,
workplace posters, notice to business partners and othermeasures. We established an external contact for
consultation and reporting that can be used commonly by
our Group companies worldwide (in about 30 languages 24hours a day, 365 days a year) in 2014, and replaced theservice provider to the largest company in the industry in
2019. As a result of our active efforts to disseminate thesystem, the number of consultations and reports continues toincrease year by year, helping to eliminate inappropriate
actions and circumstances.

Business Outline《 Compliance Education 》

Code of Conduct

Basis for Management

prevention of bribery, protection of confidential informationand intellectual property, respect for human rights,
environmental conservation and other issues. Printed
booklets are prepared in approximately 30 languages,
including Japanese, English and Chinese, and distributed to
officers and employees in our Group while the multilingualversions are also posted in all of thelanguages on our website andintranet. Moreover, to inform
employees of the Code of Conduct,
we prepare summary posters inabout 30 languages and display themin the offices and plants of relevantbases in our Group companies
around the world.

74

Respect for Human Rights
Establishment of the Sumitomo Electric Group Policy on Human Rights
Based on the Sumitomo Spirit, the Sumitomo Electric Group

respond to the various needs of our stakeholders and to

Corporate Principles and the Sumitomo Electric Group

clearly show our commitment to respecting human rights in

Charter of Corporate Behavior, we have been promoting

conformance with international standards.

initiatives to ensure respect for human rights including efforts

To ensure that our initiatives are promoted in line with thisto eliminate discrimination. The Sumitomo Electric Group

policy, we will implement training programs to educate

Code of Conduct also sets a standard that guarantees

employees about human rights and conduct fact-finding

respect for human rights and prohibits any form ofinvestigations regularly at relevant stakeholders, including

discrimination or harassment. In March 2019, the Sumitomo

domestic and overseas affiliates and business partners, while

Electric Group Policy on Human Rights was established tosetting specific operational guidelines, etc. as necessary.

The Sumitomo Electric Group Policy on Human Rights※

Date of establishment: March 19, 2019The Sumitomo Electric Group, in accordance with thebusiness activities should make any adverse impact on

Corporate Principles, shall strive to be a group of

correction. Furthermore, we expect our business partners

Sumitomo Spirit and the Sumitomo Electric Group

companies worthy of societyʼs trust by conducting businessactivities in an honest manner.

As we continue to develop together with the global

community, the Sumitomo Electric Group recognizes that
all of its business activities must be based on respect forhuman rights. The Sumitomo Electric Group will work

ethically and responsibly for the respect of human rights
ensuring that our entire group will uphold this standard.

１. Stance

human rights, it shall be handled appropriately forand stakeholders to respect the same standards of humanrights as the Sumitomo Electric Group, to prevent violationand correct any breaches.

① Human Rights Due Diligence

To fulfill our responsibilities in regard to respect for humanrights, the Sumitomo Electric Group will establish a systemof human rights due diligence through the implementationof Guiding Principles on Business and Human Rights of
the United Nations, and implement this in an ongoing

The Sumitomo Electric Group hereby sets The Sumitomomanner. Human rights due diligence includes specifying andreferred to as the Policy ) to promote initiatives forand taking measures to prevent or mitigate such risks.

Electric Group Policy on Human Rights (hereinafter

evaluating negative impacts imposed potentially or actuallyrespect to human rights. The Policy shall be guided by the② Remedy

following documents: International Bill of Human Rights(the Universal Declaration of Human Rights and theInternational Covenants on Human Rights) that sets forthfundamental human rights to be enjoyed by all people in

the world; the ILO Declaration on Fundamental Principles

In the event the Sumitomo Electric Groupʼs businessactivities result in violation of human rights or it becomes
clear that it was involved in making such adverse impact,
we will provide for an appropriate remedy.

and Rights at Work set forth by the International Labour③ Training and Education

freedom of association and the effective recognition of the

training and education to its executives and employees.

Organization (ILO) which stipulates basic rights at work i.e.
right to collective bargaining, the elimination of forced orcompulsory labour, the abolition of child labour and theelimination of discrimination in respect of employment andoccupation; and the Guiding Principles on Business andHuman Rights of the United Nations. The Policy represents
the Sumitomo Electric Groupʼs commitment to respecting
human rights based on The Sumitomo Spirit and The

Sumitomo Electric Group Corporate Principles as describedin the Code of Conduct.

２. Scope of Application
The Policy will apply to all executives and employees of theSumitomo Electric Group (all employees including
executives, permanent employees and contract

employees.) The Sumitomo Electric Group also expects all
business partners related to its business activities to

The Sumitomo Electric Group will provide appropriate④ Compliance with Applicable Laws and Regulations
The Sumitomo Electric Group will comply with the laws
and regulations of all countries where it conducts its

business activities. In the event that we face contradiction

between internationally recognized human rights standards
and the laws of the relevant country, the Sumitomo ElectricGroup will pursue ways to honor the principles ofinternationally recognized human rights.

⑤ Dialogue and Consultation

The Sumitomo Electric Group, in various efforts under the
Policy, will make use of the independent and external
expertise concerning human rights and will engage

sincerely in holding dialogues and consultation with thestakeholders.

comply with the Policy.

⑥ Information Disclosure

３. Responsibility to Respect Human Rights

the initiatives regarding human rights based on the Policy

The Sumitomo Electric Group will aim to fulfil its

responsibilities by ensuring that its business activities

The Sumitomo Electric Group will disclose the progress ofon its website and reports.

respect and enhance human rights. In the event our

75 CSR Report 2020

Web※This policy is posted on our website.

https://global-sei.com/csr/sociality/office.html

《 Issuance of a detailed regulation on
the employment of migrant workers 》

rights issues including discrimination and sexual harassment.
In 2019, a total of 12,241 persons participated in the human
Basis for Management

Based on the Sumitomo Electric Group Policy on Humanrights-related seminars, including the education provided

Rights, we issued in October 2019 a detailed regulation thatmainly by Human Rights Task Committee members at their

specifies the effective rules to be applied when our Group

worksites as well as harassment prevention training for allcompanies employ migrant workers.

managers, and human rights training for officers, newWhen a company recruits migrant workers, the process
involves various recruitment agents beyond national borders.
In recent years, media and NGOs have reported on theemployees and newly promoted employees in each position.

《 Establishment of Consultation Services 》

sight of the recruiting companies. To prevent such a situation,
a comprehensive program has been developed with thisdetailed regulation, including periodical audits of recruitment
agents, interviews with the workers and organization ofBusiness Outline

We have set up two consultation services regarding human

exploitation of migrant workers, which is sometimes out ofrights. One is supervised by the Compliance Committee andintended to support employees with focus on laws andregulations in general. Another is managed by the Human
Resources（HR) Division and deals with various kinds ofharassment in working environments such as sexual

contact points to handle complaints.

harassment, pregnancy discrimination and abuses ofThrough these initiatives, we will make continuous efforts tomonitor the activities of the Sumitomo Electric Group and thewe can perform more transparent business activities andplace a system to quickly gather information on any violation

Groupʼs CSR Activities

recruitment agents and confirm their appropriateness so that

authorities. With these services, Sumitomo Electric has inof human rights and take appropriate measures against them.

continue to grow with society.

《 Human Rights Education and Training 》

We are also making continuous efforts for human rights
training and enlightenment to solve a wide range of humanCore
Category■ Symbols in the boundary column

Consolidated
subsidiaries(Excluding Sumitomo
Wiring Systems, Ltd. andthe listed subsidiaries)

Consolidated
subsidiaries(Excluding the listed
subsidiaries)

Consolidated
subsidiaries

Quality

Sumitomo ElectricIndustries, Ltd.

J ap anSocial Contribution

ESG Data

Global

D

C

B

A

G

F

E

SocialIndicator

Detailed category

Unit

FY2017FY2018FY2019Quality control

No. of complaints (results in FY2012 = 100)

E

%
%

90

90

90

C

companies

778

603

380

companies

86

86

37

68.1

66.4

56.5

Supply chain
CSR procurement

Cumulative percentage of implementation
No. of companies surveyed
No. of companies interviewed/inspected on site

Supply Chain

Boundary

Quality

Human resources
No. of global employees
MaleFemalePersons

255,133

272,796

283,910

Persons

121,404

129,063

135,513

133,729

143,733

148,397

39,63740,23142,418Male

Persons

32,201

32,48833,798

FemalePersons

7,436

7,743

8,620

Persons

215,496

232,565

241,492

Overseas
AmericasG+
employees on loan
from othercompanies

38,92340,531

43,25360,53765,74775,415Southeast Asia

Persons

71,52979,24579,623China

Persons

44,50747,042

43,201

Persons

13,343

13,397

14,244

Male

Persons

11,872

11,805

12,527

FemalePersons

1,471

1,592

1,717

Persons

11,20011,338

11,393

Persons

9,749

9,783

9,777

Persons

1,451

1,555

1,616

Managers

No. of employees in Sumitomo Electric
MaleFemaleA+
employees on loan
to other companies

CSR Report 2020

Governance

Persons
Persons

Europe, Africa andothersEnvironmental
Preservation

Persons
Persons

In Japan

Human Resources

Employment76

Indicator
Diversity

Detailed category

Group Global Executive Personnel(as of April 1 of the following year)

Boundary

Unit

F

Persons%A

Persons
Persons5

Ratio of global employees (Sumitomo Electric)
New graduates for main career track
Global employees among them

FY2017FY201835

FY2019
41

43

2.7

9.2

10.3

185

196

213

18

22

Womenʼs empowerment
Share of women in management positions

D+
employees on loan
to other companies

Female managers
General managers or higher positions among themSection managers among them
Ratio of women in the employees hired as new graduatesA

Female employees hired

Safe andsound workplace

%

2.2

2.6

3.1

Persons

172

199

266

Persons

26

29

33

Persons

146

170

233

%

22.4

21.5

20.0

Persons

94

113

110

Turnover rate (ratio of the employees who
were hired as new graduates three years
before the relevant year and have left thecompany within three years)

A

%

7.9

9.3

10.1

Employment rate of the physically or mentallydisabled (as of June 15 of the following year)A+
qualified Group companies

%

2.29

2.29

2.36

Average total working hourA+employees on loan
to affiliates within
the Works

hours

1,999

1,988

1,970

hours/month

19.3

18.7

17.5

days/year

16.0

16.5

16.9

Average overtime hours
Average number of paid holidays taken by employees
Number of Users of the Employee Support Programs
Employees who took childcare leave

Persons

157

154

226

Male

Persons

52

46

119

FemalePersons

105

108

107

Employees who took leave when their spouses gave birth

Persons

112

121

141

Employees who used the short-time work system

Persons

282

287

287

Persons

19

19

29

Persons

263

268

258
24

Male
FemaleA+
employees on loan
to other companies

Enrollment in the reemployment system

Human resources
development

Persons

23

28

Male

Persons

0

4

4

FemalePersons

23

24

20
56

Users of internal child care centers

Persons

52

59

Users of the volunteer holiday system

Persons

6

5

5

Users of the work from home arrangements

Persons

40

209

984

91,533Training sessions organized acrossthe Sumitomo Electric Group
Total number of participants

Persons

90,03897,025

Sumitomo Electric

Persons

61,72965,36956,066

Group companies
in Japan
Overseas Group
companies

Persons

19,37921,493

21,406

Persons

8,930

10,16314,081

hours

501,194543,988555,098

Sumitomo Electric

hours

358,981394,101

400,491

Group companies
in Japan
Overseas Group
companies

hours

79,38994,60791,047hours

62,82455,28063,560225,699

Total length of training

F

Unique training sessions organized inindividual Group companies
Total number of participants

Persons

121,534

182,195

Group companies
in Japan
Overseas Group
companies

Persons

25,54834,22832,901

Persons

95,986

147,967

192,798

hours

407,759

514,559

745,433

Group companies
in Japan
Overseas Group
companies

hours

161,735

184,009

171,665

hours

246,025

330,550

573,768

Persons

67

67

72

Persons14

118Persons

36

36

41

Total length of training

Occupational
health and safety

Occupational accidents
Accidents resulting in lost work time
No lost work time injuries

F + subcontractors

Minor injuries
Lost time injuries frequency rate for employees

Persons
B

17

20

23

0.13

0.11

0.03

259,941

376,689

319,951

Social contribution activities
Amount of donations for social contribution

77 CSR Report 2020

A

thousandyenEnvironment
Indicator
Prevention of
global warming

Detailed category

Energy consumption

BoundaryF

Energy consumption per unit of sales

Unit

FY2017FY2018FY2019million MJ

27,78628,17727,506kl/100 million
yen

31

30

31

GHG emissions（Scope1）（Scope2）（Scope1+Scope2）
Japan

F

Asia
China
America
Europe and others（Scope3）
Category 1
Category 2
Category 3
Category 4

F

Category 5
Category 6
Category 7
Category 11

Resource
conservation
and recycling

1,373

708

627

429

428

375

220

210

187

139

140

126

60

56

57

3,150

8,272

6,921

2,255

2,442

2,398

519

538

583

213

262

249

37

38

36

20

30

30

33

35

37

73

78

81

ー

4,848

3,507

tons-CO2

96,60095,99389,489

97.2

101.2

99.5

97.1

91.1

77.3

39.5

37.8

31.1

thousand
tons

57.6

53.3

46.2

In Japan

%

0.22

0.76

0.54

Overseas

%

12.8

9.4

12.7

thousandtons

Amount of waste

thousandtons

In Japan
Overseas

F

Chemical substances specified in the PRTR Law
CRelease

t

51.7

38.8

32.5

t

133.2

123.0

100.0

thousandtons-CO2e

126

131

144

%

61

61

64

thousand m3

14,601

14,26013,775thousand m3

6,227

6,156

5,935

thousand m3

8,374

8,104

7,840

0

5

2

Eco-products
Contribution to the reduction of CO2 emissions

F

Water withdrawal

Non-compliance with environmental
laws and ordinances

Governance

F

F

cases

(At the close of the Ordinary General Meeting of Shareholders in the following year)
Indicator

Detailed category

Boundary

No. of directors

Unit

FY2017FY2018FY2019Persons

13

13

12

Persons10109Persons10109Persons000Persons

3

3

3

Male

Persons222FemalePersons1

1

1

No. of audit & supervisory board members

Persons555InsidePersons222Persons222Persons000Persons

3

3

3

Male

Persons222FemalePersons111InsideMale
FemaleA

OutsideAudit & Supervisory
Board

1,541

727

tons-CO2/
million ton-km

Overseas

Board of Directors

1,575

E

In Japan
Environmental
management

197
1,176

E

Percentage in sales
Water risks

209
1,332

CO2 emissions from transportation

Transfer
Environmentallyconscious products

202
1,373

Per-unit CO2 emissions from transportation

Zero emission rate
Harmfulchemical substances

thousandtons-CO2e
thousandtons-CO2e
thousandtons-CO2e
thousandtons-CO2e
thousandtons-CO2e
thousandtons-CO2e
thousandtons-CO2e
thousandtons-CO2e
thousandtons-CO2e
thousandtons-CO2e
thousandtons-CO2e
thousandtons-CO2e
thousandtons-CO2e
thousandtons-CO2e
thousandtons-CO2e
thousandtons-CO2e
thousandtons-CO2e

Male
FemaleOutsideA

CSR Report 202078

Independent Third Party Assurance Report

79 CSR Report 2020

Comments from an External Expert
My ﬁndings from CSR Report 2020 (hereinafter “this Report”) on the activities and eﬀorts of Sumitomo Electric and its Group companies(hereinafter the “Sumitomo Electric Group”) to fulﬁll their social responsibility and disclose relevant information are as follows:I hope that roadmaps for contributions toward
the future will be disclosed
The Top Message mentions that this Report introduces examplesof the companyʼs products that support society and explains how
they make social contribution as in the previous reports. I read thespeciﬁc references to high-voltage DC cables, POREFLON™
membrane and rectangular magnet wires, as well as the
combination of the concentrator photovoltaic systems and redox
ﬂow batteries, with interest. I also found the strength of theCompany in the statement “While our products contribute tosociety as parts and their contribution is low-key, we consider that
we are expanding the ﬁelds where we make a steady and reliable
contribution to society.”
While P22 has a statement that the Sumitomo Electric Group has
speciﬁed three forms of the ideal society it seeks, as well as nineﬁelds for its initiatives to oﬀer values for the society, I would like to
ask that the next report should also enhance the disclosure of theroadmaps drawn for the nine ﬁelds.
I have the impression that the CSR reports of the Sumitomo
Electric Group tend to focus relatively more on the disclosure ofpast results on the whole. I hope that the report will mention
what the Group plans to do proactively prior to changes insociety more actively.

Introduction of examples that correspond to the Progressive
Environment Innovation Strategy should also be considered
One of the reasons why I hope so is the fact that the Japanese
government formulated a Progressive Environment Innovation
Strategy in January 2020. With the recognition that theestablishment of progressive technologies that can make theworld carbon neutral requires the indication of the direction,
namely what technologies and goals are sought under what
system, this strategy speciﬁes ﬁve ﬁelds including energy supply
and demand and 16 common and important technical challenges,
as well as 39 themes with potential to reduce a large amount of
GHG emissions to which technologies in Japan may make agreat contribution.
The 39 themes include the development of high-eﬃciency,
low-cost power electronics technology. The strategy contains astatement that research and development will be conducted forthe improvement of performance and cost reduction of powerelectronics technology that can signiﬁcantly reduce the electricity
loss caused by power conversion at the power generation,transmission, distribution and consumption stages, aiming todisseminate the use of devices for new applications, etc. by 2050.
The target of reducing CO2 emissions by about 1.4 billion tons
worldwide is also mentioned in the strategy.
I suggest that what the Sumitomo Electric Group can do and want
to do to make contributions should be explained in this context.
The strategy also refers to many other items closely related to thetechnical and product ﬁelds of the Sumitomo Electric Group, suchas the expansion of the electriﬁcation of automobiles, aircraft, etc.
(using high-performance storage batteries, etc.) and substantial
improvement of the environmental performance, the establishmentof hydrogen-fueled mobility such as fuel cell systems andhydrogen storage systems, the development of technologies forhigh-eﬃciency recycling of metal, etc. and the development of
low-cost stationary fuel cells.

The improvement of the capacity of business continuity
management and the enhancement of health and productivity
management should be promoted on a global scale
Another issue that caught my attention in this Report was thestrengthened commitment to improving the capacity of business
continuity management and enhancing health and productivity
management partly in response to the spread of COVID-19.
Witnessing the global pandemic of the infectious disease,investors and asset management ﬁrms are trying to assesscompanies from a perspective of how they secure the safety andhealth of employees and their families. In March 2020, 195
institutional investors with a long-term perspective in the world
released “Investor Statement on Coronavirus Response” to urge
the investment targeted companies to place a higher priority on
health and safety in their business management. In considerationof the fact that the Sumitomo Electric Group including theconsolidated subsidiaries employs 280,000 people in total and
85% of them live outside Japan, I strongly hope that the Groupwill promote the improvement of thecapacity of business continuity
management and the enhancement ofhealth and productivity management ona global scale.

Eiichiro AdachiCounselor,
The Japan Research Institute, Limited

Sumitomo Electricʼs Response to the Findings

Osamu Inoue
President

We thank Mr. Eiichiro Adachi for providing suggestive opinions on our CSR report.
Our group has developed a wide range of businesses and supported social and industrial infrastructure broadly although the ﬁelds
do not attract much attention. In our mid-term management plan VISION 2022, we have speciﬁed the three forms of society
expected in 2030 and nine ﬁelds for our initiatives to oﬀer values for the society and are promoting activities for them.
We have made various contributions to the sustainability of society through, for example, the business related to high-voltage DC
cables suitable for long-distance transmission of renewable energy, the aluminum wiring harness business that helps make vehicles
lighter in weight and thereby reduce CO2 emissions, the high-performance optical ﬁber business to underpin communication
infrastructure, in which increases in the speed and capacity are in progress, and the electronic device business to form a basis formobile, wireless and ultra-high-speed communications that support the era of 5G, although this report did not have enough space
to explain them. Mr. Adachi put his hope on further possibilities of our group based on the examples mentioned in his ﬁndings,
which has enhanced my awareness.
In the meantime, the COVID-19 pandemic made us acutely aware of the importance of eﬀorts to address the health and safety,
the work environment, human rights, diversity and other issues of Group employees in various parts of the world and their families,
along with interested persons in our value chain. Our group will further promote measures to enhance the eﬀorts, including work
style reforms as well as initiatives to materialize the Policy on Human Rights because respect for human rights is essential forbusiness development on a global scale.
While the unpredictable situation continues, our group will continue to make concerted eﬀorts for medium- and long-term
increases in the corporate value with the unwavering basic policy of contributing to society through fair business activities under
the Sumitomo Spirit and the Sumitomo Electric Group Corporate Principles.
The Findings by an External Expert in this English version are a translation of the original text in the Japanese version.

CSR Report 202080

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［Published November 2020］