ESG Management Undertaken by the Sumitomo Rubber Group

Long-Term Sustainability Policy: “Driving Our Future Challenge 2050”
When we announced the Sumitomo Rubber Group’s Midterm Plan in February 2020, we identified “Promoting ESG

Overview of “TOWANOWA,”Management” as one of the key Value Drivers for achieving our goals. Accordingly, we have pledged to redouble oura Business Model Designed to Support a Circular Economy through the Tire Businessefforts to work toward the solution of various environmental and social issues throughout our business activities so that
we may contribute to the realization of a sustainable society.
In light of radically evolving conditions associated with social issues, including the growing repercussions of climate

Encapsulating our hope to support the long-lasting development of a sustainable mobility society in the future, the word TOWANOWA brings
together the two Japanese terms TOWA, meaning “Everlasting,” and WA, meaning “Ring.”change, we came to the conclusion that a new policy, one based on long-term perspectives that look to the world ofIn line with the TOWANOWA concept, we aim to facilitate the circulation and effective utilization of limited resources while promoting the use of2050 and beyond, would be essential to our efforts to ensure the sustained growth and development of both our group

big data, comprising data gleaned by such technologies as SENSING CORE, an asset unique to the Sumitomo Rubber Group. Through theseand society as a whole. The Long-Term Sustainability Policy: “Driving Our Future Challenge 2050” was thus formulated

efforts, we will deliver new value to customers, contribute to the creation of the next-generation mobility society and otherwise help realize a sus-and announced in August 2021.

tainable future in which all people can enjoy safety, security and comfort. We will thus promote the TOWANOWA concept to realize a long-lasting

Challenge Targets Set Forth under “Driving Our Future Challenge 2050”

atrends, help realize a sustainable world and contribute to the creation of a future of joy and well-being for all.

2050 Challenge
Target Themes• Product Innovation

tire business cycle as part of efforts to embody “Our Philosophy.” In the course of doing so, we will address issues associated with CASE* meg-Action Plans• Realizing the SMART
TYRE CONCEPT* “CASE” is regularly used to describe the four main strategic areas of focus for the industry—an abbreviation for Connected, Autonomous, Shared and Electrified.

Targets (Target Year)• Concept Tire Completion (2029), Equip all new tires with SMART TYRE
CONCEPT technology (2030)

Our Philosophy• Establishing a Sustainable• Setting Targets for Internal Standards (2022)
Product Certification System• Carbon Neutrality• Carbon Neutrality(Scope 1, Scope 2)• 50% Reduction in Emissions Compared to 2017 Levels (2030),
Full Carbon Neutrality (2050)• Carbon Neutrality(Scope 3)• Setting Targets for the Reduction of Scope 3 Emissions (2022)• The Utilization of Hydrogen • Stable Operation of Production Line Utilizing Hydrogen Boilers (2023)

Environment• Resource

Protecting theCirculation
Global Environment • Sustainable Raw
Materials& Safety• Water Resources• Increasing the Usage
Rate of Sustainable
Raw Materials• Sustainable Raw Material Content Targets by Product Line• Tires: 40% (2030), 100% (2050)• Sports: 20% of All Practice Golf Balls Sold (2030), 100% of All Golf Balls
Sold (2050) Launch of 100% Sustainable Tennis Balls (2030), 100% ofAll Tennis Balls Sold (2050)• Industrial Products (by Weight): 40% (2030), 100% (2050)• Reducing Plastic Usage• 40% Reduction in Plastic Used in Tire Labels, Packing Materials,
Sales Promotion Tools, etc., Compared with 2019 Levels (2030)• Reducing Water Usage• Supply Chain Management • Sustainable Naturalfor the Environment
Rubber (SNR) Policy• Safety & HealthSocialHarmonious
Coexistence withSociety

Reinforcing theFoundations ofOur Business

ESG Themes and Measures

ESG• 100% Recycled Water Usage at Bases of Operations in Areas withHigh Water Security Risk (2050)• Raw Material Procurement in Line with SNR Policy• Applied to Major Suppliers (2030), Applied to All Suppliers (2050)• Thoroughgoing Occupational Safety & Health• Zero Serious Accidents• Promoting HealthyManagement• Strengthening Industrial Health Framework & Cultivating Culture of Health• Organizational Culture• Developing Leadership• Respect for Diversity &Harmony• Promoting Diversity &Inclusion• Expansion of Unconscious Bias Training to All Levels (2030)• Promoting Women’sEmpowerment• Ongoing Career Development Program for Women, Percentage ofManagement Positions Held by Women: 7% (2025), 12% (2030)• Respect for HumanRights• Establishing a HumanRights Management
System• Formulation of a Global Human Rights Policy (2023), Creation of a
Human Rights Management System and Due Diligence Process (2024),
Establishment and Implementation of Human Rights Due Diligence (2025)• Supply ChainManagement• Actively Seeking
Third-Party Assessments(EcoVadis)• Procurement of 95% (purchase value basis) of Tire Raw Materials fromSuppliers Who Earned Standard (45 points) or Higher Scores (2030)(planning the phased rollout of this procurement approach to businesses
other than the Tire Business)*• Enhancing Corporate
Governance• Increasing the Diversity ofBoard Members• Establishment of a Framework for Improving the Effectiveness of theBoard of Directors with an Eye Toward External Changes & Our Shifting
Business Situation

GovernanceLong-Term Sustainability Policy:“Driving Our Future Challenge 2050”• Global Introduction of 360° Feedback (2030), Ongoing Executive Coaching(2030), 80% Positive Responses on Organizational Health Survey (2030)• Improving the Effectiveness • Analyzing the Results of Third-Party Assessments to Enact Measures toof Governance
Enhance Effectiveness• ThoroughgoingCompliance• Transparency with
Respect to Taxes• Formulation of Tax Policy • Enactment of a Global Tax Strategy (2025)• Instilling “Our Philosophy” • 80% Supportive Response on “Our Philosophy” Entrenchment Survey (2030)
Note: With regard to supply chain management, we have revised our target from Auditing Performed for 95% of Tire Raw Materials on Purchase Value Basis (2030) to Procurement of 95%(Purchase Value Basis) of Tire Raw Materials from Suppliers Who Earned a Standard (45 Points) or Higher Score (2030), setting our sights even higher.

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Integrated Report 2023

Integrated Report 2023

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