SUMI TOMO RUBBER GR O U P C S R R ep o rt 2015

3-6-9, Wakinohama-cho, Chuo-ku, Kobe,
Hyogo 651-0072, Japan

Public Relations Dept.
TEL.+81-78-265-3004 FAX.+81-78-265-3113
Certified by
Minister of the Environment

TEL.+81-78-265-3149 FAX.+81-78-265-3114

http://www.srigroup.co.jp/english/

Sumitomo Rubber Industries, Ltd.
has been certified as an Eco-First
company by Japan’s Ministerof the Environment.

Fuel-eﬃcient tires fora low-carbon society
We support the Ministry of the Environment’s“Fun to Share” new clmate change campaign.

2015.9 248

Contents

03
07

Business of Sumitomo Rubber Group ........... 03
Philosophy and Vision ........... 05
Feature Go for NEXT

Insatiable Drivefor Innovation..................... 07

Developing Environmentally Friendly Products
Contributes to Next-Generation Motorization

The Challenges of
New Markets..................... 11

Tapping into New Markets and Achieving
Sustainable Growth by Meeting Local Needs

The Sumitomo Rubber Group iscommitted to making contributions to society
by offering true value in our areas of businesstires, sports and industrial products.
What we can do to create a sustainable society;
Create new value for more comfortable and appealing lifestyles for people all

Entering New
Business Fields..................... 15

State-of-the-Art Technologies Drive Global Business
Expansion in the High-Performance Medical Rubber Field

17 Contributing to the Development of
Our Top Commitmenta Sustainable Society by Providing
Both Economic and Social Value19

CSR Activity Report2014 CSR Activity Highlights ......... 19

Green
Ecology
Next
Kindness
Integrity

Green Initiative ......... 21

over the world through our daily business practices and by providing
high-quality products that are both safe and environmentally friendly.
Continuing to be a company whose existence is truly valuable, both for people
and for the environment—this is the kind of CSR management that
the Sumitomo Rubber Group aims to achieve.

Ecological Process ......... 23

Next-Generation Product Development ......... 27
Kindness to Employees ......... 29
Integrity for Stakeholders ......... 33

Stakeholder Dialogue ..................... 37
Site Report ..................... 41
History of CSR Promotion andMateriality Identification ..................... 43
Fiscal 2014 Targets and Results ..................... 45
Independent Verification Report /Third-Party Opinion ..................... 47
Honors and Certifications from Outside Organizations /Editorial Policy ..................... 49

Sumitomo Rubber Group
Tire Business

01

SUMITOMOMITOMO RUBBER
RUBBE
RUBBER GROUPGGROU
OUP CSR REPORTREPORREORT 2015
2014
201

Sports BusinessIndustrial and other products Business

SUMITOMO RUBBER GROUP CSR REPORT 201502

Business of Sumitomo Rubber GroupThe Sumitomo Rubber Group Energizes People and Society Worldwide
Main Financial Indicators

Business Segments
Industrial and otherproducts Business

Tire BusinessSports Business

Sumitomo Rubber Industries, Ltd. Sells its
main brands of tires—Dunlop, Falken —forpassenger cars, trucks, buses and motorcycles both in Japan and overseas. Our tires
employ state-of-the art environmental
technology.

Dunlop Sports Co., Ltd. is our central
group company in the manufacture andmarketing of golf clubs and balls andtennis racquets and balls. We provide golf
products worldwide under the SRIXON,XXIO, and Cleveland Golf brands, and ourtennis products include the SRIXON andDUNLOP brands.
In 2014, we launched our wellness
business, which is centered around fitness.

Production factories
Japan (Shirakawa, Nagoya, Izumiotsu,
Miyazaki), China, Indonesia, Thailand, Brazil,
South Africa, Turkey (July 2015)
Production companies
12 consolidated subsidiaries, 6 affiliates
Sales companies
30 consolidated subsidiaries, 5 affiliates
Tire test courses
Okayama, Nayoro, Asahikawa

Production factories
Japan (Ichijima, Miyazaki), Indonesia,
Thailand, U.S.A.
Production companies
4 consolidated subsidiaries, 1 affiliate
Sales companies
9 consolidated
subsidiaries,
2 affiliates

R&D facility
Tire Technical Center

R&D facility
Golf Science CenterNorth America R&D
CenterNet Sales

Operating Income (consolidated)

Consolidated

The Hybrid Business Division of Sumitomo
Rubber Industries manufactures and markets
precision rubber parts for office machines,
vibration control rubber dampers, artificial turf
for sports arenas, flooring materials, transportable wheelchair ramps, rubber gloves, gas
pipes, blankets for offset printing presses,
engineering and marine products and medical
rubber stoppers. Overseas, we run a natural
rubber glove producing factory in Malaysia
and factories making precision rubber partsfor office machines in China and Vietnam.
We offer a wide range of products from living
ware to materials for industrial applications.
Manufacturing factories
Japan (Kakogawa, Izumiotsu), Malaysia,
China, Vietnam
Production companies
3 consolidated subsidiaries, 1 affiliate

1,000

10,000(¥100 million)

8,000
6,000 6,045

6,769 7,102

7,806

600

(¥100 million)

8,376

800

771

400

4,489 4,634
2,000
3,481 3,989 4,062

200

2011

2012

2013

2014 (FY)

Total Assets, Stockholders’ Equity(consolidated)
Total Assets

476

10,000

8,675

8,000

6,222

6,000

6,716

2010

2011

2013

2014 (FY)

2012

2013

4,134

2010

20.0

1.5
(Times)

5.0

14.7

16.0

15.6

14.3

8.3

9.9

9.6

2012

2014 (FY)

2013

1.3

1.4
1.1

1.0

0.9

9.4

0.7
0.5

7.7

0
2014 (FY)2011

Debt/equity ratio

(%)

11.4

3,298
1,897 1,977 2,442

0

2012

ROA

4,000
2,000

2011

ROE, ROA(based on operating income)

15.0

7,375

214

0

ROE

9,736

(¥100 million)

355
284

200

2010

Stockholders’ Equity

532
448

400

0

0

(¥100 million)

539

10.0

Sales companies
4 consolidated subsidiaries

863

697
600

4,000

2010

Net Income (consolidated)

Non-consolidated

0
2010

2011

2012

2013

2014 (FY)

2010

2011

2012

2013

2014 (FY)CSR-Related Indicators
EcologyG reen Green Initiative

Breakdown of Net Sales by Region

Industrial andother products business

Others

Japan

14.1%

47.3%

4.3%
Sports business

8.4%
Tire business¥837.6 billion

U.S.A

10.9%

(as of the end of
December 2014)

87.3%

SUMITOMO RUBBER GROUP CSR REPORT 2015

(t-CO2e)600,000(as of the end of
December 2014)

21,822

23,543

18,698 19,274 19,539

10,000
5,000

0
2011

2012

2013

2014 (FY)

0
2010

2011

2012

2013

2014 (FY)

2010

2011

2012

2014 (FY)2013

Note: Fiscal 2014 CO2 emissions were up significantly due tothe startup of the Hunan Factory in China.

Kindness Kindness to Employees

Integrity Integrity for Stakeholders

Number of Employees Using
Childcare Leave System

Number of Alerts or Counseling Cases
to Compliance Counseling Room

Number of Counseling Cases for
Customers by Business Segment

20

Industrial andother products
business

25

24
3(No. of people)

20

1
15

19
18

18
3

21

(Cases)

23
2
21

Asia

5

affiliates

Men

Oceania65Sportsbusiness

2011

2012

2013

2014 (FY)(as of the end of
December 2014)

9,519

0
2010

Cases

18,074 Cases

8

0

6,160

2,395

10

10

5

Tire business

Cases

15

15

29
7

16

15

10

Asia and Oceania

South
Africa25,000(Unit: Million yen)

20,000200,000

2010

30
10

9
1

734,000

15,000019.7%

Europe, the Middle East
Middleand South Africa
East597,000

648,000

668,000 687,000

91.0

Asia

consolidated
subsidiaries

03

139.5

R&D Expenses

400,000

Japan

Latin
America

129.8¥837.6 billion

Europe

7
4

100

Japan

U.S.A. & Central andSouth America

800,000

148.5

50

Business Globalization

North
America

Global Environmental Data (CO2 emissions)

150

119.1

Europe8.0%

Number of Trees Planted in One
Million Trees for Local Forests Project(Unit: 10,000 trees)

Breakdown of Net Sales by Business Segment

N ext Next-Generation Products Development

Ecological Process

2010

2011

2012

2013

2014 (FY)

Cases

Women

Group Overview (as of the end of December 2014)• Company name / Sumitomo Rubber Industries, Ltd.
• Head Office / 3-6-9 Wakinohama-cho, Chuo-ku, Kobe, Hyogo 651-0072, Japan • Establishment / 1909
• Paid-in capital / ¥42.7 billion • Consolidated net sales / ¥837.6 billion (as of the end of December 2014)• Number of employees (consolidated) / 30,224 • Consolidated subsidiaries / 75 (of which 30 are in Japan)• Affiliates / 22 (of which 10 are in Japan)

SUMITOMO RUBBER GROUP CSR REPORT 201504

Philosophy and VisionHelping Realize a Sustainable Society

VISION 2020

The Sumitomo Business Spirit reflects Sumitomo’s strong sense of mission and commitment to improving society;our business is not only for the benefit of Sumitomo, but for the benefit of the nation and society as well.
We believe that corporate social responsibility (CSR) is simply a matter of putting the Sumitomo Business Spirit into Action,and in doing so we continuously strive to provide world-class value that will help realize a sustainable society.

The Sumitomo Rubber Group aims to be known andtrusted as a global corporate citizen that fulfills its
responsibilities to society by seeking the wellbeing of allof its employees, making significant contributions toimproving both communities and society and continuing
to offer products that help people achieve more
comfortable lifestyles.

• Meet customer expectations with ever-improving product quality, manufactured
based on careful observation of what is happening in the market.

• Create new possibilities for the future by adapting to changing times while

maintaining a sound business foundation.
• Make the most of proprietary technologies and advanced research and development
to create new products and services to meet customers’ changing needs.
• Take responsibility for environmental protection in all of our business activities andcontinue to develop eco-friendly technologies.
• Create an attractive workplace that helps employees to achieve their lifestyle needs.

ValuesPractical Guidelines

Integrity &Soundness• Customer first• Direct confirmation• Scientific approach• Continuous improvement• Inter-personal concern• Face to face communication• Report, liaise and consult on all levels• Break the status quo with critical thinking• Know your limitations and set benchmarks for better performance• On-the-job-training• Accomplish goals and targets through teamwork

Dedication toLong Term Goals
Personal
Development

Aim to be a company that provides
the World’s Best Value in all of our fields of business.

Pursuit of Economic Value

Group Philosophy

Communication

Long-Term Vision

Long-Term Vision Action Slogan

2020 Financial Targets *¥12,000 billion
Operating Income ¥1,500 billion
Operating profit ratio ≥12 %
ROE
≥15 %
ROA
≥14 %
Debt/equity ratio ≤0.5
* : Exchange rate of ¥80 = $1; ¥100 = €1

Become a true global player by achieving both high profitability and high growth.
Pursue increased value for all stakeholders and greater happinessfor all employees.
Growth Engines forAchieving Our Goals / New Challenges

The Challenges of New Markets
Insatiable Drive for Innovation
Entering New Business Fields

Pursuit of Social Value

The World’s Best Onsite Operational
Skills, Research and Development
Capabilities and Technical Skills
The Best Profitability
in Our Industry

CSR Guideline

G reenGreeninitiative

Ecology Ep rcoocl eosgsi c a l

Next

Next-generation
product development

The SRI Way“Integrity and Soundness”“Communication”“Dedication to Long-Term Goals”“Personal Development”

External Environment• Climate change, frequent natural disasters• Stricter environmental regulations• Lower birthrates, aging society• Diversification in consumption behavior• The evolution of cars
• Rapid growth in emerging countries• Price fluctuations for raw materials and crude oil

Go for NEXTNet Sales

The Sumitomo Business Spirit

Placing importance on integrity
and sound management (Shinyo-Kakujitsu)
Respect for human resources
Attaching importance to technology
Harmony with public interests

Kindness Kt oi ne dmnpelsosy e e s Integrity Is tnatke eghr iotlyd ef rosr
Basic Philosophy of CSR

The Sumitomo Rubber Group’s GENKI Activities areenergetic contributions to the environment andcommunities, focusing on being both a trusted
corporate citizen and part of a sustainable society.

Long-Term Vision Action Slogan

05

SUMITOMO RUBBER GROUP CSR REPORT 2015

SUMITOMO RUBBER GROUP CSR REPORT 201506

Feature
Next-generation
Go for NEXT N ext p r o d u c t d e v e l o p m e n t

Insatiable Drive for Innovation
Developing Environmentally Friendly Products
Contributes to Next-Generation Motorization

Highest Ever Fuel Efficiency and Wet Grip

Sumitomo Rubber Industries makes solving environmental problems a top
management priority. An example of this is the extensive work we have put
into the development of the ENASAVE Series brand of fuel-efficient tires,
which are based on the concepts of ‘Nature Save’ and ‘Energy Save’.
The ENASAVE Series has never stopped evolving, as we reduced
rolling resistance to raise fuel efficiency and durability, anddeveloped the world’s first 100% fossil resource-free tire.
ENASAVE Series developments have—and are continuing
to—contribute to the realization of the next generationof sustainable motorization.

The ENASAVE NEXT, released in September
2014, has 50% less rolling resistance thattires released in 2008. To achieve thisrequired that we rethink the tire’s raw
material from square one. Of the approximately 20 materials that make up a tire,
the development team focused on
those that could make the greatest
contribution to reducing rolling
resistance. In particular, they
focused on the tread rubber,which accounts for 40-50% ofrolling resistance, doing everything possible to reduce
wasteful heat generated by
friction between the tire andthe road surface, and seeking a new material thatwould provide secure grip

Fuel-Efficient Tire(by percentage; summer tires)≥90%

Note: Fuel-efficient tires are those that meetthe standards for rolling resistance andwet grip as defined by the Japan
Automobile Tyre Manufacturers
Association (JATMA).

Just Half the Rolling Resistance of Fiscal 2008 Tires

New
Development
Technologies

even on wet roads, along the way conducting exhaustive testing of a variety of compounds and their respective performance.
In 2011, we developed 4D NANO
DESIGN, a proprietary new material development technology that allows us toanalyze the behavior of material at themolecular level. This helped us speed up
development. By adopting state-of-the-art
technologies, including Ultra Pure Natural
Rubber (UPNR) and modified polymer for
new silica, we succeeded in dramaticallyreducing rolling resistance and improving
wet grip, two characteristics that arenormally trade-offs. ENASAVE NEXTboasts the best ever fuel efficiency andwet grip for a tire and has achieved thehighest grade, ‘AAA-a’ , on Japan’s tirelabeling system.

Reduces unnecessary heat generation,
improves fuel efficiency
New silica coupling agent

SilicaModified group

StyreneModified polymer for new silica

Wet grip powder
For illustrative purposes

SUMITOMO RUBBER GROUP CSR REPORT 2015

AAA-aRubber

For illustrative purposes

Water

Road surface
1mm

The Voice of Our Employees

silica, longer than conventional
polymers. Reduces number of polymeric terminals per volume, thus dispersingt h e s t y re n e t h a t c o n v e n t i o n a l l ycondensed and gave off heat, resulting
in lower heat generation.

the polymer and silica, thus reducing
heat generation.

Widens the contact surface to improve wet grip

Modified group

07

Tire labeling system• Adopts modified polymer for new

Wet grip powder

SilicaThe ENASAVE NEXTachieves high fuelefficiency thanks to our
proprietary simulation
technology.

Note: This 5figure was derived by calculating the averagerolling resistance of the top four selling Dunlop
summer tires from 2008, and then converting according to test methods stipulated by fair competition rules
for tire labeling. The result was a 50% decrease.
• (10% decrease compared to ENASAVE PREMIUM)• Detailed information is registered with the Tire
Fair Trade Council.

• New silica coupling agent firmly bonds

For illustrative
purposes

With fewer bonds compared to our conventionalrubber, the tire is pliant and easily stretches

Representation ofmolecular structure

50%decrease

Modified polymer for new silica New silica coupling agent

CarbonNew
Development
Technologies

Rolling resistance• Wet grip powder is a reinforcing agent
whose particles are tens of times
wider than those of silica. Working in
unison with silica, they improve thefreedom compared with conventionalrubber, improving the flexibility ofpolymer when there is a major strain
on the tire rubber.

• The rubber containing wet grip powder

enters the many microscopic cavities on
the road surface, giving the tire greatercontact surface with the road and thus
improving wet grip.

Developing Highly Functional
Materials Faster
Masato Naito
Material Department III
Material Research & Development HQ.
Sumitomo Rubber Industries, Ltd.

Our proprietary technology, 4D NANO DESIGN,
played a crucial role in the development of the
ENASAVE NEXT. In 2015, we will upgrade thistechnology to ADVANCED 4D NANO DESIGN
by making use of some of Japan’s world-leading
technologies, including the SPring-8 experimental large synchrotron radiation facility, J-PARC(Japan Proton Accelerator Research Complex),
and the K computer. ADVANCED 4D NANO
DESIGN will allow us to analyze more complex
phenomena and come out with new technologies, materials, and products.

SUMITOMO RUBBER GROUP CSR REPORT 201508

Feature

Go for NEXT N ext

Insatiable Drive for Innovation
Runflat Tire Developed Using
NE-T01 Next-Generation
Tire Manufacturing System

The Voice of Our Employees

NE-T01 Next-Generation Tire Manufacturing
System Achieves Ultra-High Precision
Needs for greater safety and fuel efficiency
are driving demand for runflat tires. Runflat
tires can be punctured while driving yet still
go a distance of 80 kilometers at a speed of
80 km/h. They improve driving safety and,since no spare tire needs to be loaded in thecar, they help lighten the vehicle and safeon resources. However, since the tire sides
must be made harder to allow the car todrive this distance on a flat tire, early runflat
tires did not provide a very comfortable ride.
Improving ride comfort would requirea more precise tire-manufacturing technology. The realization of just such a technology was the impetus for a project that
Sumitomo Rubber embarked on in 2008.
The result came in October 2010 with thecompletion of the NEO-T01 tire manufacturing system.
In conventional tire manufacturing,components are fixed to a cylindrical drum,
after which the tire is inflated. But NEO-T01
adopts a metal core process in which thecomponents of the tire are affixed to ametal former (core) that has been made in
the exact shape and size of an actual
finished tire. With a technology called
Fully-Automatic Connected Control, computer control accurate to 0.01mm achieves
ultra-high precision and a light productweight, while High-Rigidity Structure technology allows for the use of harder stiffening materials than those possible with conventional tire manufacturing systems.

Metal Core Process

Fully-Automatic Connected Control

High-Rigidity Structure

Superior Comfort

Superior Comfort andEnvironmental PerformanceSuperior Comfort and Safety

In conventional manufacturing systems, tires
are inflated during their formation, resulting in
irregularities in tire roundness. With the Metal
Core Process, a metal former that is the same
size as the finished tire is used, making possible
the manufacture of a tire that is as close to aperfect circle as possible and that dramaticallyreduces vibration while a car is being driven.

Fully-Automatic Connected Control technology
manages every step of the tire-forming
process—from the formation and processing ofstrip components to their affixation to themetal core—with high precision accurate to
0.01mm. This makes possible optimal distribution of weight among tire components, thusachieving significant weight reductions. It also
results in an incredibly high-precision tire.

There is no inflating of the tire during tire formation; instead, a metal core that is the exact sizeand shape as the finished tire is used for everything from tire formation to vulcanization. This
allows for the use of harder stiffening materials
than those possible with conventional tire manufacturing systems. With this innovation, we
have succeeded in significantly reducing tire
deformation during high-speed driving.

NEO-T01 is a Completely
New Manufacturing Technology
Koji MoriManager, Works Technical Department
Sumitomo Rubber Industries, Ltd.

Developed to provide ultra-high precision, the NEO-T01
is a manufacturing technology unlike none before it.
The key to the ultra-high precision is thetuning control technology that turns and rotates
the three-dimensional rounded metal core so thatthe various components can be affixed to it. This
technology creates tires that are among the world’s
truest and smoothest circles, thus providing rider
comfort with products representative of Sumitomo Rubber’s world-class manufacturing technology. We will continue to make the most of thisultra-high precision to develop new products.

More Comfort with Fewer Resources
Development of the Runflat Tire
The first product to market using our
NEO-T01 ultra-high precision manufacturing technology was our SP SPORT MAXX
050 NEO, released in November 2014.
NEO-T01 manufacturing technology
dramatically improves tire roundness,
resulting in tires that rotate smoothly andthat dramatically reduce vibration during
driving. NEO-T01’s Fully-Automatic Connected Control allows for tire sides thatare thinner and have optimal hardness,
which reduces impact from the roadsurface and gives superior driving comfort.
With automobile manufacturers,
particularly in Europe, beginning to makerunflat tires standard on new cars, more1970 onDunlop releases firstrunflat tire.

High-Speed Uniformity

Weight Reduction

%
%
70
10
improvement
reduction
09

SUMITOMO RUBBER GROUP CSR REPORT 2015

and more cars coming out carry no flat
tire. In July 2014, before its Japaneserelease, we introduced into the European
market the AZENIS FK453 RUNFLAT tire in
the Falken brand. This tire easily met European market standards for stability andsafety during high-speed driving. And attest drives for the European media, theparticipating journalists gave high marks
to the tire for factors like car control stability and ride comfort.
We plan to increase the range of tiresizes and expand the product lineup sothat we can contribute to the dissemination of runflat tires in the market.

Number of Tires Producedwith NEO-T01

17,000/year
98,000
Number of Runflat Tires Sold

1995 on2000 on2003 on2009 on1st
generation

2nd
generation

3rd
generation

4th
generation

R e l e a s e o f D S S T,
interchangeable withnormal tires.

10% lighter than 1st
generation. 15%
lower vertical spring
constant, an indicator of ride comfort.

3.5% lighter than
2nd generation, 7%
lower vertical spring
constant.

Greater ride comfort
than normal tires
thanks to use of thermal control technologies.

2014
Release of premium runflat tire, which
achieves superior driving comfort through theuse of NEO-T01 ultra-high precision manufacturing technology.

In JapanDeformation While Driving%
50
reduction

1970
DENOVO

1995
DSST(Dunlop Self-Supporting
Technology)

2000
CTT
(Combined
Technology Tire)2009
4th-generation
runflat tire

In Europe

SUMITOMO RUBBER GROUP CSR REPORT 201510

Tapping into New Markets andAchieving Sustainable Growth by
Meeting Local Needs

Helping Thailand, One of the World’s Major Rice Exporters,
Modernize Its Agriculture
Sumitomo Rubber Group’s First Factory for Agricultural Vehicle Tires

Worldwide tire demand is increasing at an average of 4% a year. This
figure is much higher in China and other emerging countries.
Towards the fulfillment of our long-term vision, called VISION
2020, the Sumitomo Rubber Group is making ‘the challenges of newmarkets’ a medium-term growth strategy, under which it is seeking
to make inroads into emerging countries, grow business in China,
and boost Asian business for agricultural vehicle tires.
The Brazil Factory and South Africa Factory began manufacturing
in fiscal 2013, with the Thai agricultural
Inspection process for agricultural vehicle tires
vehicle tire factory starting operations infiscal 2014. At these and other factories,
we are aiming for sustainable growth byresponding to the needs of local markets.

in Thailand

Asia produces over 90% of the world’s rice,
and Thailand stands out as the world’s
number one rice exporter. Although theGroup has been producing agricultural vehicle tires in Japan, the construction of the No.
3 Factory at Sumitomo Rubber (Thailand)Co., Ltd. represents our first agricultural vehicle production base outside Japan. Beginning production in April 2014, the factory’s
aim is to advance agriculture in Asia.
Because Thailand and other South-

east Asian countries are hot and have lessdeveloped agricultural lands, agricultural
vehicle tires undergo a lot of strain. Conventionally, rubber rollers used on combine
harvesters and other machinery used an
overlap construction of joined steel cord.
This construction tended to concentratedamage on the steel cord seams. The new
Plant at Sumitomo Rubber (Thailand) Co.,
Ltd. uses a new spiral process in which thesteel cord is wound in a spiral. This results

Overview of Thai Factory Producing
Agricultural Vehicle Tires

Production capacity of
new factory

Name

Sumitomo Rubber (Thailand) Co., Ltd.

60,000Location

Amata City Industrial Estate, Rayong

Products

Manufacture and sale of tires and rubber rollers
for agricultural vehicles, solid tires for forklifts

Production April 2014
start

Inspection process for combine
harvester crawler

Bird’s-eye view of the Thai factory for agricultural vehicle tires

Women aspercentageof workforce65%

in highly functional rubber rollers withsuperior durability and minimal vibration.
Approximately 70% of the employees
at the new plant are women. Therefore, thefactory was built with equipment that would
allow these women to do their jobs without
having to lift any heavy objects. Women also
account for about one-third of the managers at the factory, another factor contributing to a safe and comfortable working environment for female employees.

The Voice of Our Employees

1,120%UP(Tires/year)

50,00040,00020,000

4,474
0

2014

2017

(FY)

Aiming for No. 1 in Safety,
Quality, and Manufacturing
Krid Charoenvon
Manager, Production Department, No. 3 Factory
Sumitomo Rubber (Thailand) Co., Ltd.

Employees and the products they make
Workplace meeting

We strive constantly to improve the work environment so that factory employees can enjoy
their jobs every day.
The agricultural vehicle tires and otherproducts made at the factory are heavy, so weare always listening to employees regarding
ways to solve any work issues that come up.
We also aim to become the number one
factory in terms of safety, quality, and manufacturing so that our employees have something
to smile about and be proud of.

FeatureGo for NEXT

11

Kindness Ke mi npdl onyeeses st o I ntegrity Is tnatkeeghr iotlyd ef rosr

The Challenges of New Markets
SUMITOMO RUBBER GROUP CSR REPORT 2015

SUMITOMO RUBBER GROUP CSR REPORT 201512

Feature

Go for NEXT Kindness Integrity

The Challengesof New Markets

Safety prayer ceremony in Turkey factory

Russian Federation
EuropeProviding Tires to Emerging Countries
with Promising Growth
Conducting a Sustainable Growth Strategy
at the South Africa Factory
Africa accounts for 14% of the world’s
population. In December 2013, we purchased Apollo Tyres South Africa andreopened it as the Sumitomo T ire
Group’s South Africa Factory. With thisacquisition, we secured the usage rights
to the Dunlop brand for all of Africa andbegan our quest to expand business on
the continent.
In 1994, South Africa’s Broad-BasedBlack Economic Empowerment (BBBEE)
wrote into law equal employment
opportunities for all people. Besides
abiding by BBBEE, the South Africa Factory gives priority to local suppliers, andcarries out the Dunlop Container Pro-

gram, which aims to support the business of previously disadvantaged people,
as part of its sustainable growth strategy. The program supports small tire
repair businesses by providing training
and equipment.
In fiscal 2014, the South Africa Factory held training to instill all employeeswith the Sumitomo Business Spirit andthe SRI Way. The factory works under abusiness model of ‘Ubumbano’ , whichmeans ‘unify’ in Zulu, stressing communication among employees and managers to realize the SRI Way, thus achieving
higher levels of safety and productivity,
and a better working environment.

in Turkey

in South Africa

Overview of South Africa Factory
Name

Sumitomo Rubber South Africa (Pty) Limited

Established December 2013
Products

Middle East

North Africa
West Africa

Manufacture and sale of tires for passenger cars
and light trucks, sale of tires for trucks and busses

Employees Approx. 1,100

East Africa

Production capacityof South Africa Factory
20,000(Tires/year)

25%UP

15,00050%UP14,50012,20010,000

9,600

South
Africa

5,000

0

2013

2016

2017

(FY)

The Voice of Our Employees

Artist’s rendering of completed Turkey Factory

Turkey Factory Goes Onstream: To Make Products for Middle East,
North Africa, Russia, and Europe
Overview of Turkey Factory
Name

Sumitomo Rubber AKO Lastik Ticaret A.S.

Established February 2013
Production July 2015
start
Product

Manufacture and sale of radial tires forpassenger cars

Employees Approximately 270

Ingrain the SRI Way
to Create Value

Production capacityof Turkey Factory

Neil Rademan(Tires/year)

Sumitomo Rubber South Africa (Pty) Limited.
Group Manager Organization Development
Bird’s-eye view of the South Africa Factory

Tire production line

13

I lead training in the SRI Way. My role is to have
employees fully understand the Sumitomo
Group spirit so they can discover new value.
To this end, I have included the SRI Way
in code of conduct training. This allows
employees to understand how the SRI Way isrelated to code of conduct and how it ties inwith the way we act. This has been extremely
influential and has helped us recognize thetrue meaning of the SRI Way and what typeof conduct is expected of all of us here at
Sumitomo Rubber South Africa (Pty) Limited.

40,000The Sumitomo Rubber Group is focusing
on five regions where demand growth isexpected: Latin America, Russia, theMiddle and Near East, India, and Africa.
Turkey is strategically located between
Africa, Russia, and Europe, and it is herethat in February 2013 that we established the joint venture company Sumitomo Rubber AKO Lastik Ticaret A.S.
This company, the Group’s Turkey Factory, will start production in July 2015.

Global tire demand in 2020 is estimated at approximately 2 billion tires.
About half of this demand is expected
to come from China and other emerging
countries. To respond to this vibrantdemand, the Sumitomo Rubber Groupwill increase its production and sales
bases, contribute to solving various
regional issues, and strive to be a corporate group that can achieve sustainablegrowth hand-in-hand with communities.

750%UP

30,00030,00020,00010,000

4,000
0

2015

2019

(FY)

Ubumbano Garden (vegetables are grown for the facility)

SUMITOMO RUBBER GROUP CSR REPORT 2015

SUMITOMO RUBBER GROUP CSR REPORT 201514

Feature
Next-generation
Go for NEXT N ext p r o d u c t d e v e l o p m e n t

Entering New Business Fields
State-of-the-Art Technologies
Drive Global Business Expansion
in the High-Performance
Medical Rubber Field
While society rapidly ages and finds itself with more advanced needs inmedical and nursing care, these same sectors are facing a serious
shortage of labor. Sumitomo Rubber Industries is aiming to lessen
the burden on medical and nursing care workers through exhaustive research and development that utilizes the advanced
know-how we have built up in the tire business. Since 2000,
we have been providing medical rubber that offers
safety, security, and superior ease of use. We boosted
production capacity in 2010 with the constructionof a second plant at our Kakogawa Factory. In
January 2013, we entered the market for bio
formulations and other special performance products. In January 2015, we
acquired a Swiss manufacturer of
medical rubber parts to expand
into more markets worldwide.

Providing Medical and Nursing Care Facilities Worldwide with
Safety and Security Through Special Performance Medical Parts
Bringing the World High-Quality, High-Performance Products Nurtured in Japan
Medical products must be manufactured ina highly sterile environment. Sumitomo
Rubber Industries uses production equipment compliant with the GMP*1 practices
required for the manufacture of medical
and other products. Strict dimensional andvisual inspections are conducted to ensure
products are completely free of impurities.
Sumitomo Rubber Industries has an
approximate 60% share of the Japanesemarket for gaskets*2 for pre-filled syringes.
These pre-filled syringes have been enjoying
growing market share for the past 10 years
because they make work easier for on-site
medical staff and they help prevent erroneous filling of the wrong medicine on site.
The gaskets for pre-filled syringes must
be extremely airtight so that they do not leakeven after years of storage, they must be
highly resistant to the medicine in the syring-es, and they must slide smoothly through thesyringe when patients are given their shots.
We make the most of the polymer andrubber processing technologies garnered in
our tire business, while also matching eachrubber formulation to the particular medicine
that will be in the syringe. We develop andprovide products that meet the meticulous
needs of our customers.
With an eye to expanding to the European market, in January 2015 we acquired
Switzerland-based Lonstroff Holding AG,
the world’s fourth largest manufacturer of
medical rubber parts. We aim to be theworld’s third largest in this field as we takeour products—whose quality meets Japan’s
strict standards—to new world markets.
*1 GMP: Good manufacturing practices*2 Gasket: An airtight rubber stopper inserted into thesyringe.

Sales of medical rubber parts
100

160%UP(One hundred million yen)

80

78
60
40

26

29

29

2012

2013

2014

20
0

2015

(FY)

Share of gaskets for pre-filled
syringes (in Japan)

65%

Apporox.

The Voice of Our Employees

Product design and development

The production line for medical rubber parts satisfies
the strictest quality control standards

A System for Quickly
Reflecting the Wishes of
Customers into Products
Masanori Hashimoto
Medical Rubbers Business Unit, Hybrid Rubber Products HQ.
Sumitomo Rubber Industries, Ltd.

Medical rubber products

Cutting-edge inspection equipment is used to ensure
products are completely free of impurities

15

SUMITOMO RUBBER GROUP CSR REPORT 2015

Currently Lonstroff Holding AG’s main businessis the manufacture and sale of rubber parts,
mainly for blood collecting vessels. But we areconsidering having Lonstroff also manufacture
products such as pre-filled syringe gaskets,
which we have up to now made in Japan.
To this end, we are switching from ourcurrent system of two factories in Japan to asystem of three factories, one of them in Switzerland. This will allow us to effectively allot
production among factories as we continue to
strive to offer stable supply.
SUMITOMO RUBBER GROUP CSR REPORT 201516

Our Top Commitment

Contributing to the Development of a Sustainable
The pursuit of social value, like the pursuit of economic value,
is absolutely essential for a company to achieve sustained
growth. As a key element of Sumitomo’ s philosophy, this is
an idea that has been passed down through generations
over the course of Sumitomo’s 400-year history.
By continually providing “The World’ s Best Value” for allof our stakeholders, the Sumitomo Rubber Group has achieved
sustained growth while at the same time making numerous
contributions to the development of a sustainable society.

Striving to Create Ever Greater Value
while Contributing to Solutions to
the Challenges Facing Society throughOur Long-Term Vision—VISION 2020

ProfileIkuji Ikeda
Graduate of Kyoto University’s
Faculty of Engineering
1979: Entered Sumitomo Rubber
Industries, Ltd.
2000: Became General Managerof the Tire Production
Technology Department
2003: Became an Executive
Officer
2007: Became a Director andSenior Executive Officer
2010: Became a Representative
Director and Managing
Executive Officer
March 30, 2011: Appointed
to Current Position as President
and CEOFirst unveiled to the public in September of 2012, VISION 2020is the Sumitomo Rubber Group’ s Long-Term Vision, reflecting
our basic stance as we pursue both economic and social value
under our dual goals of “becoming a True Global Player withhigh profits and high growth” and “pursuing enhanced value
for all stakeholders and greater happiness for all employees.”
Toward the achievement of these goals, we have chosen “Gofor NEXT” as our action slogan for VISION 2020 with the aimof sharing among all of our employees the same strong desire
to contribute to the next generation of society by taking on
New Challenges.
As part of VISION 2020, we have also defined three key
Growth Engines that stand as pillars supporting our efforts to takeon New Challenges: the “Challenges of New Markets,” “Insatiable Drive for Innovation” and “Entering New Business Fields.”
In taking on the “Challenges of New Markets,” we will
expand the size and scope of our business in growth markets,
especially in China, Brazil, Africa, Turkey and other newly
emerging markets where we anticipate growing demand in
the near future. At the same time, with a newly opened factory in Thailand producing tires for agricultural machinery, we
aim to contribute to the worldwide development of agriculture while helping to resolve the problem of food shortages.
In order to pursue both economic and social value inthese new markets, we strive for harmonious coexistence inthe regions where we do business by contributing to local em-

Society by Providing Both Economic and Social Value
ployment, promoting the development of local communities,
reducing our impact on the local environment and so forth.

Providing the World with Advanced
Products through Our “Insatiable
Drive for Innovation”
Thanks to our “Insatiable Drive for Innovation,” the Sumitomo Rubber Group succeeded in developing ENASAVE 100,
our groundbreaking line of fuel-efficient tires made using
100% fossil resource-free, all-natural materials, in 2013. We
plan to follow this achievement with the development of evenmore advanced technologies, taking the form of new
high-performance biomass materials. The first generation ofthese advanced new materials will find applications in products appearing on the market in 2016 and we plan to havethe second generation ready for incorporation in products
starting in 2020.
At the same time, with the aim of utilizing our proprietary 4D NANO DESIGN New Materials Development Technology to better respond to our customers’ needs in terms ofhigh-quality, high-performance tires, we are now working on
the next evolution—ADVANCED 4D NANO DESIGN—which
will be a key technology in our quest to achieve enhanced
safety performance and environmental friendliness. We aim
to incorporate ADVANCED 4D NANO DESIGN technology
into our products starting in 2016.
Further, we also released premium runflat tires in Japan andEurope as our first round of next-generation, high-performancetires produced using NEO-T01, the revolutionary Next-Generation Tire Production System that we first unveiled in 2012.
As part of our efforts to “Enter New Business Fields,” wehave recently been focusing on “Healthcare Business Expansion.” And so, in January of 2015, we embarked on a new
business in Switzerland in the field of Medical Rubber Parts, afield that is expected to undergo rapid growth in the near
future. Now with our own manufacturing and sales base inEurope, we will continue to expand our business globally,
armed with the “High Quality and High Performance” that
we have cultivated in the Japanese market, in order to deliversafety and peace of mind to medical and nursing care facilities
throughout the world.

Striving to Be a Truly Valuable Company
with a High Sense of Purpose
In order for a company to continue to grow and develop, acompany must continually earn and maintain the trust of society by fulfilling its social responsibilities as a corporate citizen
and through active contributions to the development of a sustainable society. That is one of the reasons why we have established the SRI WAY, which defines the Values and Principles
for Action that we expect our employees to share and practicein their day-to-day work. It is also why we strive to engender acorporate culture where all employees have a high sense of
purpose and can encourage each other to do their best andset the bar higher in a free and open workplace atmosphere.
Further, guided by our Basic CSR Philosophy and our
CSR Guidelines as encompassed in the acronym “GENKI,” aswell as our CSR Message—“For You, For the Earth”—we are
not only fulfilling our various social responsibilities in terms ofcompliance and environmental protection, but are also applying our advanced technical research and development capabilities toward accelerating the pace of global progress andsolving society’ s problems with an eye on the next generation. At the same time, we are also striving to develop products that take customer safety and comfort into considerationand to achieve ever higher levels of quality and economy
while also enhancing the soundness and transparency of ourmanagement so that we may maintain our position as a reliable company for all of our stakeholders.
In order to continue being a company that provides true
value for people, for communities and for society now and in
the future, the Sumitomo Rubber Group will reinforce the foundation of our business and strengthen our group’ s horizontal
and vertical connections in order to build a strong organizationthat can withstand the changes of the times as we continue tocontribute to the realization of a sustainable society.
On behalf of the Sumitomo Rubber Group, I sincerely
hope for and look forward to everyone’ s continued guidanceand support. In addition, I wish to say that we would verymuch appreciate your candid thoughts and opinions regarding this year’s CSR Report.

President and CEO, Representative Director
Sumitomo Rubber Industries, Ltd.

17

SUMITOMO RUBBER GROUP CSR REPORT 2015

SUMITOMO RUBBER GROUP CSR REPORT 201518

CSR Guidelines

CSR Activity Report

Green Initiative2014 CSR Activity Highlights
The Sumitomo Rubber Group’s GENKI CSR Guidelines were formulated in 2008.
Let’s look at some Group activities carried out in line with the GENKI Guidelines in 2014.

G

Next-Generation
Product Development

reen
Tree Planting
Aroundthe World

Kindness to Employees

Fostering human resource development
and making jobs rewarding.
Creating a safe, employee-friendly workplace

Achieving a work-life balance.
Promoting Diversity
Respect for Human Rights

Integrity for Stakeholders

Ensuring thorough corporate governance.
Promoting dialog with stakeholders.
Ensuring thorough compliance

Keeping social contribution in constantmotion.
Supply Chain Management

Eco-First commitments

K

Tree planting at the Thailand Factory

E

Developing environmentally friendly products.
Pursuing safety and comfort, economy, and quality.

* In fiscal 2014, we added and revised indices to measure efforts we are undertaking.

The Sumitomo Rubber Group plants trees
and flowers at factories and sales companies in Japan and overseas as part of its‘greening’ initiatives. In fiscal 2014, weplanted a total of 38,560 trees at ouroverseas bases.
P.21

cologyAt the Ichijima Factory, we introduced
waste-heat recovery equipment that traps
flash steam generated during golf ballmanufacturing and reuses it to heat water.
This has helped reduce CO2 emissions.

indness
Training Employees
Towards Preventing
All Disasters

Training simulating a fall down the stairs

Activities that Energize
the Organization

P.23

In fiscal 2007, we launched our “Love YourWork” project aimed at energizing the organization of Sumitomo Rubber. Under this project, in
fiscal 2014 there were 911 sessions of special
employee discussion held throughout the Group.
P.30

Waste-heat recovery equipment at the Ichijima Factory

A workplace discussion at a factory and a sales company

Protecting Biodiversity

N

P.44

Under the Eco-First Program, which aims to encourage leading companies to redouble their environmental preservation efforts, companies make acommitment to the Minister of the Environment toimplement measures to curb global warming tohelp Japan meet its targets for the Kyoto Protocol.

In fiscal 2014, 53,500 employees took
part in periodic safety education, while
50,000 joined accident simulation training. We also held training for local companies and schools that in fiscal 2014 wasjoined by 1,200 participants.
P.31

Reducing CO2 Emissions ThroughWaste-Heat Recovery

Sumitomo Rubber production bases work withexperts in the field to protect and foster endangered species.
P.26

The Sumitomo Rubber Group makes
environmental protection efforts a top
management priority. In March 2009, aspart of the Eco-First Program establishedby the Ministry of the Environment, theGroup made a “pledge of eco-first” tothe Minister of the Environment. This
pledge has been mostly accomplished,
and in March 2012, a
new “pledge of eco-first(renewal letter)” wassigned.

Implementing worldwide
environmental management.

Creating a Low-Carbon Society
Building a Recycling-Oriented SocietManaging Environmental Pollutants

Ecological Process

Next
Kindness
Integrity

Eco-First commitments makeenvironmental protection
a top priority.

Helping to curb global warming by planting trees.
Fostering better relationships with local communities through tree planting.
Protecting Biodiversity

Green
EcologyI

Sasakia charonda (Japanese emperor butterflies)

ext
Developing Fuel-Efficient, Environmentally Friendly Tires
We developed the ENASAVE RV504 tire for minivans, which boasts higher
fuel efficiency, reduces
wear and uneven wear,
and can lessen the thewobbling typical of minivans, thus providing
more stable car steeringand a comfortable ride.
P.27

Quality
Improvement
at Overseas Bases

ntegrity
Furthering CSR
Procurement

To ensure CSR procurement that encompasses compliance, human rights, andfair labor practices, in fiscal 2014 we
conducted our second CSR procurement
questionnaire among approximately
1,100 suppliers.
P.35

For its quality improvement efforts, the Indonesia Factory was awarded
for the seventh year in a
row at the Toyota Kaizen
Festival.
P.28

Risk Management Training at Overseas Bases
To disseminate risk management throughout the entire
Sumitomo Rubber Group and make it part of our global
expansion activities, in fiscal 2014 we held risk management
training for the first time at overseas production bases.
P.33

Risk management training at the Indonesia Factory

19

SUMITOMO RUBBER GROUP CSR REPORT 2015

SUMITOMO RUBBER GROUP CSR REPORT 201520

GreenCSR Activity Report

Gree nTe a m E N A S A V E F u t u r e P r o j e c t

Green Initiativei n i t i a t i ve

Shiraoi Town

Management Approach
Forests are crucial resources that protect biodiversity and absorb the CO2 thatcauses climate change. Under the green initiative of the Sumitomo RubberGroup’s CSR Guidelines, we plant trees and flowers on and around bases inJapan and overseas.
In fiscal 2009, we launched the Million Trees for Local Forests project toplant trees and flowers on and around our bases around the world. We have
kept well ahead of our initial target, reaching 1.48 million trees planted as of
fiscal 2014. We will continue to plant trees and create new forests.

Protect the Uyoro
River Basin

Progress of the One Million Trees for Local Forests
Project (Cumulative Number of Trees Planted)
150(Unit: 10,000 trees)

Initialtarget

100

50

0
2010

2011

2012

Acorn Project in Japan
Team ENASAVE campaign

2013

2014

With the goal of protecting Japan’s vanishing cultural assets andnatural environment, in fiscal 2013 we launched the TEAM ENASAVE
Future Project in cooperation with the National Federation of UNESCO
Associations in Japan (NFUAJ). Under this project we held clean-up
activities at 10 locations around Japan in fiscal 2014.

2029 (FY)

Oshino Village

Other tree-planting activities in Japan
Overseas tree-planting activities

Beautify the Oshino
Hakkai Springs
Echizen City

Helping to Curb Global
Warming While Fostering
Better Relationshipwith Local Communities
through Tree Planting
The Voice of Our Employees

Green Initiative Plants the Seeds
of Environmental Awareness

Teruki Saijo
Test Department II, Tire Technical HQ.
Sumitomo Rubber Industries, Ltd.

Our department does everything possible to plant
trees and flowers around the head office andengineering districts.
Tree planting is a great opportunity to plant
the seeds of environmental awareness while
enjoying exhilarating physical activity together withcolleagues, families, and former Sumitomo Rubber
employees. Another benefit is that after the tree
planting is over, we get to enjoy a picnic lunchin places of great natural beauty. One such
unforgettable lunch was in the GENKI Forest in
Tanba, Hyogo Prefecture, where local residents
cooked up some amazingly delicious pork-stock
soup for us. I highly recommend that all employees
join in and experience tree planting firsthand.

21

SUMITOMO RUBBER GROUP CSR REPORT 2015

Planting Trees in GENKI
Forests in Japan
We plant trees and other vegetation at
Sumitomo Rubber GENKI Forests on
and around our bases in Japan. In fiscal
2014, we established two new GENKI
Forests, bringing the total to 11.
When planting trees, one has to becareful of evasive species that may havea negative effect on local species of vegetation. That’s why we only plant seedlings grown using acorns gathered in thetarget area. We also take into accountbiodiversity in our greening efforts.

Ichinoseki City
Mimasaka City

Saving the Rice Terracesof Aidaueyama

On September 14, 2014, 95
employees took part in rice
planting in Mimasaka City,
Okayama Prefecture, led by
the NPO Aidaueyama Rice
Terrace Corps.

On July 13, 2014, 51 employees took part in a gatheringo f farmers and other local
residents to protect the waterfront and its wildlife. Participants removed weeds, culled
excess water vegetation, anddug ditches in the rice fields.

On October 4, 2014, 115
employees took part in aclean-up of the Shinnasho
River basin and the Oshino
Hakkai springs area, led by
the Oshino UNESCO Association.

Rejuvenate
the Ecosystemof the Kubo River Basin

Iwate

Fukui
Okayama
Hiroshima

Saitama

Yamanashi
Kanagawa

Fukuoka

Kumagaya City

Kamakura City

Fukuoka City
Kainan City

Protect the Wajiro
Tidal Flats
Planting mangrove trees along the coastin Sattahip, Thailand

Plant Ricein Moko Fudodani

Preserve the Sceneryof Kamakura

Fukuyama City

Clean Up the Pilgrimage
Route in Tomonoura

Sumitomo Rubber Honored in MLIT Marine Day Awards
Planting trees ina forest in district
No.7-3 of Sakai City,
Osaka Prefecture

The award fromJapan’s Ministry ofLand, Infrastructure,
Transport and Tourism

On August 3, 2014, 71 employees took part in building areservoir that would provide an
ecosystem for aquatic life
forms. The activity was led by
the Kubo River Ihatobu Nature
Revival Association.

Protect the Sticklebackof the Motoara River

Wakayama

T o p i c s

Sumitomo Rubber Industries was honored as
a company contributing to keeping the ocean
clean at the July 2014 Marine Day Awards
sponsored by Japan’s Ministry of Land, Infrastructure, Transport and Tourism (MLIT).
Sumitomo Rubber received the MLIT Kinki
District Chief Award. This honor recognizes
our contributions to clean ports and harbors
through our support of tree planting that
improves the environment of Osaka Bay.

Hokkaido

Bringing Storks Back
to Echizen

Greening Activities Overseas
We plant trees and flowers at our factories and sales bases around the world.
In fiscal 2014, we planted 38,560 trees
at these worldwide bases.
A portion of the sales proceedsfrom ENASAVE fuel-efficient tires goesto supporting TEAM ENASAVE mangrove planting activities. We planted
24,000 mangrove trees in fiscal 2014,
bringing the total so far to 1,119,617
trees planted. Under our 1 Pair for 1 Love
initiative, for each pair of gloves sold1 yen goes to tree planting activities in
Borneo, Malaysia. So far we have planted
1,600 trees under this initiative.

On October 11, 2014, Sumitomo Rubber employees joined agathering in Shiraoi Town,
Hokkaido Prefecture led by the
NPO UYORO Environment
Trust and the Hokkaido Citizens
Environmental Network. The
total of 60 participants helped
cut down and thin out a larch
forest and observed wild salmon
swimming upstream.

On October 19, 2014, 47 employees took part in a nature tour
and clean-up of the tidal flats,
led by the Society to Protect
the Wajiro Tidal Flats.
On July 27, 2014, 24 employees helped cut weeds and clean
up a famous pilgrimage route,an activity led by the TomoTown Renewal Studio, theOtaka Housing Protection
Asociation, and the Museum
Friendship Society.

On June 22, 2014, 118 employees took part planting inorganic paddies in an activity
led by the NPO the Suushi
Biotope Natural Revival
Association.

On September 20, 54 employees took part in an environmental protection volunteer
gathering led by the Kamakura
Scenery Preservation Foundation. Participants removed
weeds around the Kaishun-in
temple.

On July 20, 2014, 65 employees took part in an activity led
by the Kumagaya City Stickleback Protection Association,
removing weeds from aroundthe Motoara River, home tothe stickleback fish.

SUMITOMO RUBBER GROUP CSR REPORT 201522

Ecology
CSR Activity Report

Ec o l o g i c a l

Reducing the Environmental Impactof Our Business Activities

The Sumitomo Rubber Group
believes its social responsibility is tocreate new value and contribute tobuilding a sustainable society. We arealso trying to create a safe and affluent society.
In March 2009, Sumitomo
Rubber Industries, Ltd. was certified
as an Eco-First company by Japan’s
Minister of the Environment. We
have set targets under our three
eco-first commitments: create a
low-carbon society, build a recycling-oriented society, and promoteharmonious coexistence with nature.

2.4

400

300 293 302(t-CO2e/t)

297
265

263

1

In fiscal 2015:• Reduce CO2 emissions
from energy consumption
intensity less than(of 1990 levels).

55%

50

%
• Release tire withlower rolling resistance.

2

Buildinga RecyclingOriented Society• Continue to havecomplete zero
emissions for waste tolandfill at production
bases in Japan.

• Release a 100% fossil
resourcefree tire in fiscal
2013.

264

293

262

3

0.905

0.891

100

0.932

0
1990 2010
Total*1

2011 2012

Total emissions*202013 2014 2015 (FY)
Target441

450

4,000 0.843
2.00

3,370

1.418 1.00

3,862

3,992

4,010

4,008

3,920

0.90

3,737
0.60

0.596

3,000

0

0
2004

2010 2011

Total*3

Basic unit

0.533 0.521 0.538 0.513 0.500

0.302012 20132014

Basic unit

2015
Target

0

0
2004

(FY)

2010

Total*42011 2012 2013
Basic unit

2014 2015
Target(FY)*3 According to the Guide to Calculating Greenhouse Gas
Emissions, published by the Japan Rubber Manufacturers
Association. The electricity emission factor is as per the
WRI/WBCSD GHG Protocol Initiative Calculation Tool (2004).

*4 According to the Guide for Calculating Greenhouse Gas
Emissions, published by the Japan Rubber Manufacturers
Association. The electricity emission factor is the valueannounced by the electricity companies in 2004.

Energy Usage (Crude Oil Equivalent)(6 Factories in Japan)

Energy Usage (Crude Oil Equivalent)(9 Overseas Factories)

Energy Usage (Crude Oil Equivalent)(5 Factories Operated by Domestic Affiliates)• Plant over 20,000

trees per year under the
Acorn Project.

• Take action to protect

biodiversity.

180(1,000 kL)

170

174

174

172

0.638

171

169

167

0.65

200

(kL/t)(1,000 kL)

0.63

150

0.721

0.724

0.609

149

0.593

Items marked with a “ ” are verified by third parties.
Verified data do not include “intensity” figures.
Figures differ from verified ones because of a differencein coefficient.

T o p i c s

Ichijima Factory Installs Waste-Heat Recovery Equipment
to Reduce CO2 Emissions
In February 2014 at the Ichijima Factory, waste-heat recovery equipment was installed to trap
flash steam generated during golf ball manufacturing and reuse it as a heat source. The waste
heat reduces the electricity needed by an existing chiller and is also used as a vaporization
heat source for the boiler, thus saving on LNG usage.
The result has been a 1.6% reduction in CO2 emissions against the previous fiscal year
at the Ichijima Factory. This is a 20% higher saving than estimated in our initial plans.
The Ichijima Factory waste-heat recovery equipment was installed with the help of a
subsidy, from the Japan Agency for Natural Resources and Energy, called ‘Emergency Measures to Install Next-Generation-Type Heat-Utilization
Devices’ in 2012.

0.57

0.567

0
2010

Total

2011 2012 20132014

Basic unit02015 (FY)
Target

CO2 Reduction Activities
in Distribution Processes

CO2 Emissions in Logistics (Domestic)

0.80

2,500

(kL/t)(kL)

0.70(kL/t)

0.676 0.685 0.672

34
0

0
Total

2012

2013

2,117

2,295

2,291

2,241(kL/unit)
0.400
0.300

2014

Basic unit

2015
Target0.307 0.302 0.299 0.308 0.293

1,000

0.601
0.50

2011

1,987

2,273

1,500

50

2010

1,855

0.60

0.613

2004

2,000

0.500

0.464

(FY)

0.286

0.200
0.100

500
0
2004
Total

2010

2011 2012 2013

Basic unit2014

02015 (FY)
TargetISO 50001 Certification Achievedin Short Period Since Factory Startup

Rogerio Campos
Sumitomo Rubber do Brasil Ltda.
Project Staff

Because about 70% of Brazil’s electricity comes from hydropower, few people are aware of the need toreduce CO2 emissions and it’s a challenge to promote energy-saving activities.
The Brazil Factory established an Energy Efficiency Committee in 2013 and has since been working
towards targets. These efforts resulted in certification for the ISO 50001 standard for energy
management systems in February 2015. This is the fastest time that any company
in the Sumitomo Rubber Group has achieved ISO 50001 certificationfrom factory startup. It’s a feat that boosted awareness among
our employees.
Our per-unit energy use is higher than thatof other overseas bases, so we are now
striving to improve this by reducing
wasted energy.

(t-CO2e/t)(1,000 tons-CO2e)

0.04

50

30

179

0.05

60

Hot water absorption chiller and hot water storage tank

183

The Voice of Our Employees

In fiscal 2014, CO2 emissions from thetransport of tires totaled 35,858 tons-CO2,
a 3.6% increase over fiscal 2013 andrepresenting a 1.8 point decrease inbasic-unit emissions. This was due mainly
to shorter average transport distances.
We are striving to change the meansof transport—a modal shift—from trucks
to railroads and ferries, which have a relatively low environmental impact. The fiscal
2014 modal shift ratio was 15.4%, down
1.5 points over the previous year. Ourlarge-vehicle transport ratio was 23.9%,
up 1.7 points over the previous year.
In fiscal 2015, we will shift more transport to large vehicles and work to boost
efficiency in our manufacturing and transport.

40

171

0.59

0.593
0.582

2000

156

176

136

0.61

140

0.03800.03840.03880.039533.17034.09034.33034.6142010

2011

0.038835.858

0.03
0.02
0

0
Total

SUMITOMO RUBBER GROUP CSR REPORT 2015

409

*1 According to the Guide for Calculating Greenhouse Gas
Emissions, published by the Japan Rubber Manufacturers
Association (used to calculate per-unit figures). The
electricity emission factor is the value announced by theelectricity companies in 2004.
*2 Total emissions do not take into account cogeneration credits.

0.590

23

(t-CO2e/unit)

92

150

In fiscal 2014, CO2 emissions at our six
factories in Japan totaled 262,000
tons-CO 2 (89% of fiscal 1990), up
1,000 tons-CO2 from the previous year.
This fell short of our target (85% of
fiscal 1990). Basic-unit of CO2 emissions
dropped 2.6 points against the previous
year, attributable to waste-heat recovery
and optimization on the steam lines.
Basic unit of energy usage(crude-oil equivalent) decreased by 1.9
points against the previous year but fell
short of our target (91% of fiscal 2000).
In fiscal 2014, our nine overseas
factories and our five domestic affiliates’
factories were unable to reach thetarget of at least a 3% decrease in bothbasic unit of CO2 emissions and energy
usage (crude-oil equivalent) against theprevious year.
We are aiming to achieve fiscal
2015 targets at all business sites inJapan and overseas.

386

1.584 1.549 1.561 1.480

100

Climate Change Actionin Production Processes

1.20(t-CO2e)0.867 0.6160

Creating a Low-Carbon Society

4,500

3,500

322

200

0.915 0.891

365

1.720
1.958

1.2

1.481

PromotingHarmonious
Coexistence with
Nature(1,000 tons-CO2e)

400

253

3.00
(t-CO2e/t)

600

1.8

289

288
261

200

Sumitomo Rubber Industries Eco-First Commitments

Creating
a Low-Carbon
Society293

CO2 Emissions (5 Factories Operated by
Domestic Affiliates)

CO2 Emissions (9 Overseas Factories)(1,000 tons-CO2e)p ro c e s sManagement Approach

CO2 Emissions (6 Factories in Japan)

2012

2013

2014

(FY)

Basic unit

SUMITOMO RUBBER GROUP CSR REPORT 201524

Ecology
CSR Activity Report

Ec o l o g i c a l

Reducing the Environmental Impactof Our Business Activities

p ro c e s s

Observing Japanese emperor
butterflies (Ichijima Factory)

Building a Recycling-Oriented Society

Harmonious
Coexistence with Nature

Items marked with a “ ” are verified by third parties. Verified data do not include “intensity” figures.
Verification covers: Waste generated in fiscal 2011 and 2012, and waste discharged (excluding valuables) in fiscal 2013 and 2014.

Continue to Achieve Complete
Zero Waste Disposal*1

Reducing Waste Discharged*2

In March 2010, by promoting recyclingof wastes the Sumitomo Rubber Group
achieved complete zero waste disposal,
meaning no waste is directly sent tolandfills at primary production sites inJapan and overseas.
Our goal is to have our newly
launched production bases achievecomplete zero waste disposal and ourexisting sites continue to do. In fiscal
2014, the Hunan Factory in China was
not able to achieve complete zerowaste disposal and so we will work to
see it is achieved in fiscal 2015.
The material recycling rate in fiscal
2014 was 81%, little changed from theprevious fiscal year. Our target for fiscal
2015 is 85%.
*1 Complete zero waste disposal: No waste is sent
directly to landfills and 100% is recycled. (Sumitomo
Rubber recycles all of the waste it processes inorder to reuse it.)Amount of Waste Generated and Recycle Rate
(6 Factories in Japan)
50.0

100

(Kt)

(%)

40.0
30.0

100

100

100

100

33.3

33.5

33.9

34.5

100
36.0

80
60

20.0

40

10.0

20

To make use of waste as valuables, infiscal 2013 we changed the management indicator from ‘amount of waste
generated’ to ‘amount of waste
discharged’ (excluding valuables).
Waste discharged intensity in fiscal
2014 at the six factories in Japan was
down by 27.3 points over the previous
Amount of Waste Discharged(Excluding Valuables) (6 Factories in Japan)
(Kt)

2010

2011

Waste Generated

2012

2013

2014

0.032

(t/t)

0.033

15.00

0.030

0.024
0.023

10.00 9.39

8.92

0.020

9.33
7.19

6.97

5.00

0.010

0.00

0.000
2011

2012

Waste discharged

2013

2014

Basic unit

2015
Target

0.040

20.00
(Kt)

0.033

15.00

0.022

0.032

8.77

8.89

(t/t)

0.030

0.024

10.00
5.00 5.07

0.030

9.87

5.98

0.020
0.010
0.000

0.00
2011

2012

Waste discharged

2013

2014

Basic unit

2015
Target(FY)(FY)

Material Recycling Rate (6 Factories in Japan)

Amount of Waste Discharged(Excluding Valuables)(5 Factories Operated by Domestic Affiliates)

100

1,500

(%)

(Kt)

60

79

80

82

82

81

0.101

0.102

0.097

0.103

0.101

705

774

724

806

17.0

6,000 16.9
5,001

4,990

0
2012

2013

2014

(FY)

20.0

17.9

17.6

16.9

5,064

5,022

4,979

(m3/t)

2011

2012

Waste discharged

SUMITOMO RUBBER GROUP CSR REPORT 2015

2013
Basic unit

2014

2015
Target(FY)

ISO 14001 Global Integrated
Certification
Boneset Flowers Have Taken Rootin Kakogawa

10.0Manager, No. 2 Survey Section, Himeji Office,Kinki Regional Development Bureau, Ministry of Land,
Infrastructure and Tourism (MLIT)

2,000

5.0

0

0
2012

Basic unit

2013

2014

(FY)

Planting boneset bulbs in a riverbed
in Kakogawa (Kakogawa Factory)

Implementing Global
Environmental Management

4,000

2011

ae) at Miyazaki Factory, arimagumi(elaeagnaceae) in the Kobe area, andsasakia charonda (Japanese emperor
butterflies) at Ichijima Factory.
In April 2014, under the guidance of the Ministry of Land, Infrastructure, Transport and Tourism(MLIT) and Tamotsu Hattori, a professor at the University of Hyogo, we
planted 100 bulbs of boneset that we
had grown at the Kakogawa Factoryin the original habitat of these flowers,
along a riverbed in Kakogawa. Ninetyof these bulbs have sprouted and are
growing vigorously.

The Voice of Our Stakeholders

Yosuke Toyoda

2010

0.000

0

Sumitomo Rubber Group works toprotect biodiversity through businessactivities that make sustainable useof the many elements that make up
biodiversity.
The Acorn Project (see page 21)
aims to preserve the biodiversity ofDNA. The project preserves and fosters
endangered species to protect the biodiversity of seeds. Our main species
are the Katakuri family at Shirakawa
Factory, boneset (asteraceae), (cyperaceae) and sanguisorba tenuifolia at the
Kakogawa Factory, echinops (asterace-

15.0

Wastewater

0.040

500

20

2011

8,000
(1,000 m3)

(t/t)

776

Biodiversity Conservation

Wastewater (6 Factories in Japan)

0.120

0.080

1,000

40

2010

The Sumitomo Rubber Group strives toclean wastewater and reduce theamount through measures such as
installing wastewater treatment equipment and recycling water.
To contribute to easing the looming worldwide water crisis, we areaiming to recycle 100% of the wastewater at our worldwide factories by
2050. We currently have a model factory project at the China factory.
It comes possible for us by implementing recycling technology to plan to
set up factories where water stress ishigh.

Recycle Rate

80

25

(FY)

Amount of Waste Discharged(Excluding Valuables) (9 Overseas Factories)

0

0.0

0.032

*2 Amount of waste discharged is calculated as waste
discharged with the goal of recycling it (thermal/material recycling).

Wastewater Recycling

0.040

20.00

fiscal year. This was the result of making
tire incinerated ash into valuables.
Waste discharged intensity at nine
overseas factories was down 9.1 points,
while at the five factories operated byaffiliates in Japan it was up 6.1 points.
We will continue to change waste into
valuables in fiscal 2015.

In Kakogawa, where riverbeds are experiencing
increasing growth of grass and trees, the
MLIT is aiming to bring back the days whenpeople were inextricably linked with the riversb y p ro t e c t i n g a n d re v i t a l i z i n g t h e r i v e renvironments that give living things a place toinhabit, grow, and proliferate. However, if
riverbeds are left as they are, then they will
become overgrown with vegetation once again.
Plants such as the local boneset plantedby Sumitomo Rubber have taken firm root in
Kakogawa. I believe that the spread of thisvegetation will help create and maintain abeautiful environment.

To implement global environmental
management, in December 2010, theSumitomo Rubber Group obtained ISO
14001 Global Integrated Certification
for its 30 bases in Japan and overseas.
This enables us to carry out unified
environmental management at global

production and development bases.
In fiscal 2014, the new factory inBrazil also obtained ISO 14001 Global
Integrated Certification.
The new factory in Turkey will start
operations in fiscal 2015 and plans callfor it to obtain ISO 14001 Global Integrated Certification in fiscal 2016.
Employees at ISO 14001 Certified Sites as
Percentage of All Employees

Employees
at ISO 14001
Certified Sites as
Percentage of
All Employees

Global Environmental Control Central Committee

25,319persons

83.8%

Note: Includes temporary employees. (As of 31th of December
2014.)SUMITOMO RUBBER GROUP CSR REPORT 2015

26

Next

CSR Activity Report

Ne x t - g e n e ra t i o n

The Voice of Our Employees

Next-Generation ProductDevelopment

p ro d u c t

d e ve l o p m e n t
T o p i c sManagement Approach

Fiscal 2013

Environmentally Friendly ProductDevelopment Themes

The Sumitomo Rubber Group strives
to develop environmentally friendly
products in order to grow its businesswhile at the same time contributing to
the realization of a sustainable society.
Tires use oil as a raw material,
and more than 80% of the CO2 emitted during a tire’s lifecycle is emitted
during tire usage. With this in mind,
we develop products with two major
goals: use fossil resource-free raw materials, and improve fuel efficiency.

Product concept

NatureSave

Rawmaterials

What tires
can do forthe environment
Resource
savings

ENASAVE
Series
Product concept

EnergySave

33%

Developing Fuel-Efficient Tires
The tire division of Sumitomo Rubber
Industries has in-house standards forenvironmental performance. This helps
us ensure that tires do more than just
perform well; it allows us to use
non-fossil resources, provide fuel efficiency, and incorporate special noise-absorbing sponge, thus giving customers
driving comfort in a tire that protects theenvironment.
In February 2015, we released the
ENASAVE RV504 tire for minivans, madeusing our proprietary 4D NANO DESIGN
new material development technology.
The ENASAVE RV504 boasts higher fuelIn September 2014, we released
Hibrid-Turf EX, which provides 10 years
of product use to give users with thething they want more than anything in
artificial turf: durability. Using thick yarn
(raw yarn) provides twice the length of
product usage, and it makes the turf softand gentle on people’s skin, thus softening the falls that are likely to occur.
an 50,000m2 of Hibrid
HibridMore thanTu r f E X h a sdbeen installeddat schools andnsports parks in
the Tokyo area.

improvement

Note: Compared to previous Sumitomo Rubber product.

27

efficiency, reduces wear and unevenwear, and can lessen the wobbling typicalof minivans, thus providing more stable
car steering and a comfortable ride.

Hibrid-Turf EX, Long-Pile
Artificial Turf with
Superior Durability

13% decrease
8%

Ta
TargetReleased
ENASAVE NEXT,
with 50% lessrolling resistance(See pages 7-10
for details.)

Rolling resistance

Uneven wear
resistance

Fiscal 2014

Fuel
efficiency

Developing
Environmentally
Friendly Products

WearresistanceTargetReleased
ENASAVE 100,
100% fossil
resource-free tire

SUMITOMO RUBBER GROUP CSR REPORT 2015

Sumitomo Rubber Develops Tyre Manufacturing
Simulation Technology
Sumitomo Rubber Industries developed Tyre Manufacturing Simulation Technology, whichallows us to precisely predict final product quality during the development stage throughsimulations that reveal the various mechanisms and thus the various phenomena that occur
in each stage of the tire production process. This technology makes maximum use of thesimulation technologies that we have built up over the years.
Tire manufacturing encompasses a number of processes: for example, kneading, in which
fillers such as raw material rubber and carbon
are kneaded; extrusion, in which the rubberpart is processed into a uniform dimensioned
sheet; and vulcanization, in which the material is put into a mold and heated to give theshape and tread pattern. By simulating what
will happen in these processes, process
design and equipment can be optimized, thus
improving tire quality, increasing precision
during development, and reducing the environmental impact of manufacturing.

Quality Management System
The Sumitomo Rubber Group’s quality
management system is certified for
ISO/TS 16949*, an international standard covering automotive parts andservice parts.
In May 2014, the head office, theOkayama Tire Test Course, and domestic factories received accreditation in
ISO/IEC 17025, an international standard establishing general requirements

ENASAVE 100 Earns Numerous Honors
The highly praised ENASAVE 100, a 100% fossil resource-free tire,
has earned numerous honors.
Energy Conservation
Prize, Agency for
Natural Resources
and Energy
Director-General’saward
Good Design Award

Masaya Tsunoda
Manager, Research Department I
Research & Development HQ.
Sumitomo Rubber Industries, Ltd.

When we first began developing our Tyre Manufacturing Simulation technology, a major goal
was to improve the prediction accuracy, which
proved quite difficult. But now our manufacturing engineers and simulation experts are able togather and foresee manufacturing processes
through simulations, understand the various
mechanisms at work, and come up with ideas for
new products.
We will continue using this simulation technology effectively so that we can more efficiently
develop tires and thus reduce the environmental
impact of manufacturing.

In Pursuit of Safety and Comfort,
Economy, and Quality

T o p i c s

Environmental
Achievement of
the Year at Tire
Technology Expo
2014 in Europe

Contributing to More Efficient
Tire Development and Lessening
Environmental Impact

For its quality improvement efforts,
efforts the Indonesia
Factory was awarded for the seventh year in a row
at the Toyota Kaizen Festival

for the competencies of testing andcalibration laboratories for their tire performance testing program.
* ISO/TS 16949: A quality management system basedon ISO 9001 but tailored for the demands of theautomotive industry.

Tire Safety Inspections
The Dunlop Tire Safety Project is aimed
at preventing tire-related accidents, andsince fiscal 2008 we have been conducting this project twice a year at highway
rest stops and commercial facilities in allof Japan’s 47 prefectures. Air pressure ischecked and visual inspections are conducted for wear on tire grooves. Drivers
are also taught how to safely use andmanage their own tires as part of themessage that daily inspection of car tires
is extremely important.
In the six years since the project
began, the tires of more than 57,000
cars have been inspected.

Tire safety check

SUMITOMO RUBBER GROUP CSR REPORT 2015

28

K
K i n d n e s s

CSR Activity Reportindnesst oKindness to Employeese m p l oye e sManagement Approach

Sumitomo Rubber Group’s Basic Hiring Policy

Employees achieve satisfaction by working for the
Sumitomo Rubber Group, which grows as a result of
its employees’ success. To continue building such asound relationship, we believe that we have a responsibility to provide all employees with a fair and equalchance to grow through a range of benefit packages
and training programs.
Women are taking on more active roles in Japanese society, and Sumitomo Rubber Industries is doing
everything possible to make workplaces more conducive to women and maximize their talents.

Diverse employment
environment and humanresource development

Environment conducive
to rewarding work

Fostering Human Resources
and Making Work Rewarding
Fostering Human Resources
The Sumitomo Rubber Group provides
all employees with well-rounded personal training through the Human
Resources Department, Production
Training Department, and related divisions. Young employees get fundamental training in theory, and managementlevel employees get practical training in
how to maximize organizational
strength and energize their organizations. Such training helps individuals by
respecting their motivation to grow andhelping them learn to notice andimprove situations on their own.
At our overseas affiliates, training
focuses on three areas: boosting problem-solving skills, understanding Sumitomo Rubber management philosophy,
and understanding an implementing
the SRI Way.

In fiscal 2014, training at our overseas subsidiaries focused on ingraining the
SRI Way, our most important philosophy
and the core of our Group management.

Manufacturing Education
In the Production Training Department,
we hold courses on themes such as
passing down skills and the philosophyof manufacturing, and responding tobusiness globalization. Our goal is toensure that all worldwide employees
get a consistent, standardized education on our company’s manufacturing.
In fiscal 2014, with the goal of passing on skills in equipment maintenance,in addition to training for supervisors
conducted so far, we held training for
new employees, and we trained supervisors to enable them to lead such training
for new employees. This expanded thescope of our education and training.
At our Shirakawa Training Center,a total of 1,946 employees underwent
training in fiscal 2014.

Fair evaluationand equal benefits

Skill Olympics
Every six months we hold the SRI Skill
Olympics at the Shirakawa Training
Center to help pass on skills to young
employees and to motivate them. Manufacturing is divided into eight processes,
and one of these is the theme for each
edition of the Skill Olympics. The event
brings one young employee selectedfrom each of our worldwide factories topit his or her skills against the others infriendly but intense competition.
In fiscal 2014, the Brazil Factory
was represented for the first time at theSkill Olympics, achieving outstanding
results and verifying that we have beensuccessful in disseminating skills to ourworldwide bases.

Dialogue Between Managers
and Employees
The Sumitomo Rubber Group provides
periodic opportunities for frontline managers and employees to share concernsand exchange opinions. At informal
roundtable meetings with the President,
between 10 and 20 young employees
and female employees gather to focus
on select themes as they freely discuss arange of topics off the record including
work-related advice, the President’s philosophy of life, family, and hobbies.
In fiscal 2014, a total of 172 employees took part in nine sessions, withparticipants candidly discussing boththe company’s good point and things
that could be improved.
We plan to provide employees at
all job levels and in all company divisions
opportunities to exchange views with
the President and among themselves.

Love Your Work Project
In fiscal 2007, we launched our ‘Love Your
Work’ project (LYWP) aimed at energizing
the organization of Sumitomo Rubber bypromoting the creation of the ideal, worker-friendly company environment.
In fiscal 2014, the project had two
main activities: special employee discussions, and LYW Style, both aimed atcreating greater interaction both hori-T o p i c s

Employee Questionnaire Results Help Improve
Workplace Awareness
The Sumitomo Rubber Group has been conducting employee questionnaires periodically since
fiscal 2007. The results of the fifth survey, conducted in fiscal 2014, indicate that, compared tothe average of other companies, Sumitomo Rubber employees see great future promise for theircompany. With regards to the SRI Way,
Results of Employee Questionnaire
results showed about 80% of respondents
Sumitomo Rubber Industries, Ltd.
Manufacturing industry average
are familiar with it, a confirmation that it
Overall satisfaction
has taken firm route among employees.
Sense of job
Meanwhile, since results also showed Appeal of company
to employees
fulfillment
changing opinions about working styles,
feedback will be sent to various company
divisions to help improve the working Advancement
Sense of job
adaptability
in market
environment.
We will follow up on the progress of our
improvement efforts in fiscal 2016 so that Loyalty to company
Satisfaction withworkplace
we can continue making Sumitomo Rubbera friendlier place to work for our employees.
Satisfaction with managers

zontally and vertically throughout company organizational structures.
There were 911 sessions of special
employee discussions held throughout
the Group in fiscal 2014 at which participants shared their experiences, theirvalues and other things they notice intheir daily work.
Under the LYW Style activities,
based on the concept of ‘connect, know,
and notice’ , the goal was to foster anawareness of the traditions and educational characteristics of each workplace,
be it the head office or a factory.

Mold Team, Production Section IV, Miyazaki Factory
Sumitomo Rubber Industries, Ltd.

The 10th Skill Olympics (machine maintenance)

The 11th Skill Olympics (vulcanization and molding)

SUMITOMO RUBBER GROUP CSR REPORT 2015

A Gold Medal Dedicatedto My Team Members

Yosuke Suzuki

Kataruba, an opportunity for employee
communication across job classifications

LYW Style activity: Special employee discussions

A Kataruba for discussion between factoryand sales company employees

LYW Style activity: Sumitomo Rubber-themed
quiz gameTraining in the SRI Way
at an overseas factory29

The Voice of Our EmployeesFirst and foremost in my mind was my teammembers at work and the feeling of gratitude I
had for them. In the past 10 years at the Skill
Olympics, the representatives of the Miyazaki
Factory were unable to bring home a gold
medal. With this in mind, I practiced over andover, making the most of the skills passed on by
our superiors and the comprehensive system of
support I was given. On the day of my Skill
Olympics event, I felt enormous pressure, but
still managed to focus the accuracy and speedof work that I had practiced every day. The
result was the first gold medal ever for the
Miyazaki Factory, something I am extremely
proud of.
I will use this experience to do everything
possible to pass on the skills I have acquired to
my underlings.

SUMITOMO RUBBER GROUP CSR REPORT 2015

30

K
K i n d n e s s

CSR Activity Reportindnesst oKindness to Employeese m p l oye e sCreating a Safe, Employee-Friendly Workplace
and train employees to follow safety
rules no matter where they are, with thegoal of fostering safety-aware workers
and eliminating all workplace disasters.

Striving to Eliminate
All Disasters
With the aim of ridding the workplaceof all dangers and accidents, the Sumitomo Rubber Group carries out safety
activities that eliminate the causes ofaccidents and intrinsically raise thelevel of safety. We also practice directconfirmation exhaustive safety inspections and visual checks.
In fiscal 2013, there was a major
accident at an overseas factory. In
response, we made and carried out
equipment safety measures to keep
equipment and workers apart and to
shut off equipment before workers
enter potentially dangerous places. In
addition, we conducted hands-on
activities at all business sites to makeeveryone in the entire Group aware ofthree principles for fostering safety-aware employees: abide by rules,
make the workplace safer, and havemanagers and supervisors fulfill their
responsibilities. Despite these efforts,
there were 52 accidents in fiscal 2014,
19 more than the previous year, atoverseas factories, mainly involving
young, inexperienced workers.
To improve the situation, we willshow employees firsthand the danger ofpast accidents, act to ensure safety rules
are being followed in the workplace,Occupational Health and
Safety Management System
The Sumitomo Rubber Group is working
towards receiving certification for the
OHSAS 18001 international occupational
health and safety management system.
In fiscal 2014, the Brazil Factory andfive other factories were certified, bringing the total of certified bases to 11.

Certification
date

1.59

1.58

0.50

0.98

1.05

1.00

0.94

1.66

1.06

0.39
0.15

0.15

0.15

2012

2013

0.07

0.00
2010
Overall Industry

2011

2014 (FY)

Manufacturing Industry

Sumitomo Rubber Industries, Ltd* accident frequency rate: the number of deaths or injuries
per 1 million net working hours.
No. of deaths and injuries due to accidents × 1,000,000 /Total work hours

31

November 2014

Indonesia Factory

November 2014

Hunan Factory

November 2014

Sumitomo Thai Eastern Corporation
Co., Ltd. (STEC)

December 2014

Shirakawa Factory

Accident simulation training (Simulating blind spots
when driving a forklift at the Shirakawa Factory)

Education and Awareness
Activities Boost Occupational
Safety and Health

1.50
1.00

Brazil Factory

The Voice of Our Employees

2.00

1.62

Promoting More Active
Roles for Women

Certified factory

September 2014

SUMITOMO RUBBER GROUP CSR REPORT 2015

Since the Sumitomo Rubber Group
believes that fostering safety-aware
human resources is the key to eliminating
all workplace accidents, we hold periodic
education and awareness-raising activities
on occupational safety and health. These
activities are given for each job description
and are followed up in order to ensurethat employees are effectively acquiring
the skills and knowledge being taught.
In fiscal 2013, a cumulative total of
53,500 employees joined these educational activities.
To drive home just how frightening
accidents can be, we have training thatuses actual machine models to simulate
accidents and thus effectively raise employees’ sensitivity to the dangers. A cumulative total of 50,000 employees have taken
part in this. This course is also open to

In fiscal 2014, we made blood tests
part of employee health checkups dueto the importance of preventing lifestyle-related diseases from an earlyage. We also stepped up specific healthadvice to employees by requesting theassistance of public health nurses.
Because of the dangers of smoking, we have set a goal of making allcompany buildings no-smoking andreducing the employee smoking rate byhalf by 2020. In fiscal 2014, we sought
to eliminate harmful passive smoke andmake it more difficult for employees tosmoke by moving designated areas tooutdoor locations. May 30 is a company-wide no-smoking day, when we
provide as many opportunities as possible to make employees think about thedangers of smoking; these include nosmoking anywhere on the premises ofa Sumitomo Rubber site, no sales ofcigarettes, no-smoking seminars, andno-smoking posters and other informational measures.

No-smoking seminar

Work-Life BalanceSites Certified for OHSAS 18001 in Fiscal 2014

Frequency of Occupational Accidents(disabling injury frequency rate*)
1.61

local companies and schools and we havewelcomed 1,200 participants so far.
In fiscal 2015, we will continue striving to foster safety-aware humanresources through small-group training
where participants discuss frankly justwhat they must do to avoid accidents.
These safety discussion sessions will allow
employees to take the initiative on safety
by deciding on their own what safety
actions they must take in their jobs.

Preventing Lifestyle-RelatedDiseases

Striving to Maintainthe Zero-Accident Record

Shingo Momotsu
Foreman, General Affairs Section, Ichijima Factory
Dunlop Sports Co., Ltd.

At the Ichijima Factory, we hold ongoing accident
simulation training and other training for all
employees, as well as those of partner companies, so that everyone knows why we have rules
and why they must be followed. These efforts
resulted in zero accidents in fiscal 2014.
We will continue to hold accident simulation training, based on knowledge of past
accidents in the Group and geared to our needs,
so that we can maintain our zero-accident recordin fiscal 2015.

At Sumitomo Rubber Industries, we arehelping women take a more active role byhiring more women for career-track jobs
and promoting more women to managerial positions. In 2015, women accounted
for a greater percentage, 30%, of the
new university graduates we hired. By
2020, our goal is to double the numberof women in managerial positions.
In fiscal 2015, we will introduce a
daycare support system for financial
assistance to parents who are leaving
their child of younger than 2 years old ata daycare facility. The aim is to help theseparents return to their job at a Sumitomo Rubber base as soon as possible
after they take maternity leave or childcare leave. This will help women who areaiming for a career at Sumitomo Rubber.
We will continue to create a workplaceenvironment where employees of any
gender can use their talents to the fullest.

amount of after-hours work employees
do, and we are encouraging employees
to take their paid leave. The result of
these and other efforts has been that all
employees who give birth take childcare
leave. As well, we are doing everything
possible to encourage male employees
to take childcare leave, and in the past
five years nine male employees havedone so. In fiscal 2009, we became thefirst company in the tire industry to becertified for the Kurumin logo, presented
by the Japanese government to companies that strive to help employees raise
their children. We were once again certified in fiscal 2013.
In fiscal 2014, we introduced the
JOB Return system aimed to get employees who have left the company to return
to work. Under this system, employees
who had to quit due to reasons like marriage or their spouse’s job transfer canreturn to work as full-time employees.

Sumitomo Rubber Industries has introduced work systems and awarenessactivities that make it easier for employees to carry out childcare and nursing
care; for example, we are reducing the

The Voice of Our Employees

Employees Must Understandthe Importance of Using Workplace
Systems

Noriko Watsuji
Manager, Supply Chain Department
Dunlop Sports Co., Ltd.

Number of Employees Using Childcare
Leave System
25

Helping Employees Balance
Work and Family Life

Employees can also choose not to be
subject to a workplace transfer, giving
them more flexibility in how theybalance their jobs and home life.
We will continue to expand andimplement systems that create a work
environment that meets the specificlifestyle needs of employees.

(No. of people)

20
15

19

1

18

10

18
3
15

15

2011

2012

24
3
21

23
2
21

2013

2014

5
0
2010
Men

Women

(FY)

Childcare and nursing care support systems are
more comprehensive than they used to be andthere are more and more women who are using
these systems to balance their jobs and family life.
To promote childcare leave among men, andto get both men and women taking nursing careleave, I think we have to teach people that theyneed no longer worry about what their colleagues
think about taking time off, or about how taking
time off will effect their job evaluation.
I hope the company works to raise employee
awareness in line with the expanded scope ofthese leave systems.

SUMITOMO RUBBER GROUP CSR REPORT 201532

I

CSR Activity Reportntegrity

In te g r i t yf orIntegrity for Stakeholderss t a k e h o l d e rManagement Approach
The Sumitomo Rubber Group must fulfill its
responsibilities, understand what is expectedof it, and reflect these in its business activities.
To this end, regular communication with our
stakeholders is indispensable.
As we globalize our business, we welcome
a diverse range of new stakeholders aroundthe world. We strive to demonstrate integrityin all our business activities so that we can earn
the trust of all our stakeholders.

Customers

Sumitomo
RubberGroup

Local community

Suppliers

Enhancing ThoroughCorporate Governancetransparency by continuously strengthening our internal control systems.
Sumitomo Rubber Industries has
Corporate Auditors and a Board of Auditors. To boost management supervisory
functions, three of the five corporate
auditors are outside auditors. As well, allof our outside directors (two outside
directors and three outside auditors) areregistered as independent directors inaccordance with the rules of the Tokyo

Corporate Governance
Philosophy
So that we can raise corporate value andbe a trusted company that meets the
expectations of its shareholders and otherstakeholders, the Sumitomo RubberGroup positions corporate governance as
one of its key management tasks. To thisend, we strive to ensure efficiency in all
aspects of management and improve
Corporate Governance Structure

General Meeting of Shareholders
ReportAppointment/Dismissal

Appointment/Dismissal

Board of Auditors (Corporate Auditors)

Business Audit

Appointment/Dismissal

Appointment/Dismissal

ReportReportBusiness
Audit

ReportReportCooperation

Internal Contro
Auditors

Business Execution
ReportPresidentInternal
Audit

Management Committee
Report

Audit

Audit Department

Executive Officers

Legal ComplianceReinforcement ofCorporate Ethics

Corporate Ethics Committee

Employees

Cooperation

SUMITOMO RUBBER GROUP CSR REPORT 2015

Employees walk home from the Tokyo Head Officeas part of disaster drills

held drills in which employees walked
home from the Tokyo Head Office.
We will also carry out practical drills
that simulate the actions to take in natural disasters other than earthquakes.

Ensuring Thorough Compliance

Risk Management Philosophy

Preventing Wrongful Conduct

Compliance Education

The Sumitomo Rubber Group defines
risk as a “factor that may interfere withor exert a negative effect on thesmooth execution of business activitiesor the achievement of management
objectives/strategies based on theGroup’s management philosophy.”
We determine the relative importance of risks by taking into account not
only financial impact but also whether
we (1) ensure quality and safety, (2)maintain a good relationship withstakeholders, (3) comply with laws andregulations, and maintain corporate
ethics, and (4) abide by the Sumitomo
Business Spirit, Group Philosophy, andGroup Code of Conduct.
In fiscal 2014, we held risk management training for the first time atoverseas production bases. As we stepup our global business expansion, we
will continue to make risk management
an integral part of our business activities.

We drive home to our employees theimportance of avoiding all wrongfulconduct through our Corporate Codeof Conduct, which includes rules toforbid private monopolies, unfair competition, and business dealings; forbid
bribery; and insulate ourselves fromanti-social forces.
In fiscal 2014, we strove to ingrain
the importance of compliance at basesin emerging countries by holding compliance management activities at ourfactories and sales companies in China,
South America, the Near and Middle
East, and other regions.
As part of efforts to prevent compliance violations at overseas affiliates,
we have gathered past examples fromoverseas bases in which complianceviolations were narrowly avoided. We
plan to use these in compliance education at overseas bases in the near future.
As well, through measures such as
establishing compliance committees atoverseas bases, these bases can initiatecompliance activities independently andthus better support their own compliance promotion systems.

Compliance issues are part of everything from new employee orientation
to training programs for all employee
levels so that we can raise awareness of
the importance of compliance among
our employees.
In addition, in fiscal 2014 we held
training for managers on a number of
topics, including a lecture (approximately 150 participants) on anti-dumping
levies that are now widespread aroundthe world, and briefings on legal issues
such as contracts and Japan’s Subcontract Act. Briefings on a range of topics
were also held at Sumitomo Group
companies around the world.
Compliance education is also held
for individual employee groups, such as
newly hired university graduates,
mid-career-hired employees, and Sumitomo Group company managers.
At overseas affiliates, compliance ispromoted through training sessions
covering areas such as faircompetition laws andlaws on bribes andother improper
business practices.

Risk management training at the Indonesia Factory

33

Having experienced two major natural
disasters in recent memory, the Sumitomo Rubber Group positions earthquake
preparedness as a central theme in its
business continuity plans (BCPs).
So that we can protect human
lives and be able to continue productdeliveries to customers as soon as possi-

ble following a disaster, by fiscal 2013
we completed formulating all measuresfor earthquake BCPs at the Kobe Head
Office and the Tokyo Head Office.
With protecting human lives as our
top priority, we have stocked all bases inJapan with disaster supplies and conducted ongoing drills in confirming the safety
and whereabouts of people. As part ofefforts to confirm the viability of ourBCPs, in fiscal 2014 for the first time we

Stock Exchange so that there is no conflict of interest with regular shareholders.

Corporate Attorney

AdviceCooperation

Cooperation

Shareholders,
Investors

Accounting Audit

Each Business Operation Division

Compliance Counseling Room(Corporate Ethics Helpline)

Independent Auditors

Board of Directors (Directors)

Business Continuity Plan
(BCP)

Sumitomo Rubber Group Stakeholders

Our goal is to have all Sumitomo Group
worldwide employees fully aware ofand abiding by the rules of compliance.

Information Security
The Sumitomo Rubber Group fully
understand the importance of protecting and managing personal informationand classified information and has
appropriate measures to do so.
In fiscal 2014, we formulated theSumitomo Group Social Media Policy,
guidelines that we have made public on
how all employees and company officers must use social media either atwork or in private.
We will continue to educate theentire Sumitomo Rubber Group on theimportance of protecting and managing personal information and classified
information.

In-house seminaron basic legal knowledge

SUMITOMO RUBBER GROUP CSR REPORT 201534

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CSR Activity Reportntegrity

In te g r i t yf orIntegrity for Stakeholderss t a k e h o l d e r

Promoting Dialogue with Stakeholders
In fiscal 2014, the release of new
golf clubs, the XXIO 8 and SRIXON New
Z Series, resulted in a flood of inquiries
and questions.
The After Service Centers havebeen working to more quickly respondto inquiries from retailers; for example,
they began opening on Saturdays starting in February 2013.
Dunlop Sports Co., Ltd. sees thingsfrom the customer’s eyes, striving toreflect customer ideas in new productdevelopment and quality improvement,
and providing customers witheasy-to-understand information whenever possible.

Satisfying Products andServices for Customers

Tire Business:
Boosting Customer
Service Skills
Since fiscal 2006, we have held the
National Customer Service Skills Contest at our company stores. At the ninth
edition of the event in fiscal 2014, contestants faced off in role-playing simulating interaction with customers, using
for the first time a specially developed
iPad customer service application called‘Tire Concierge’ , the first such application among tire companies.
The inaugural use of the iPad contributed to extra excitement, with
Shinya Hokari of Dunlop Tire Kanto Tire
Select Washimiya taking first prize.
Judges praised him for a confidence inusing the application that conveyed tocustomers that they were in good
hands. Company stores will continue towork with customer needs first andforemost as they strive to build up theirbase of loyal Dunlop customers.

Industrial andOther Products Business:
Booth in Earth Day Tokyo
Dunlop Home Products Ltd., a manufacturer of gloves and other daily products for end consumers, continued its
annual participation in Earth Day Tokyo
with a booth at this year’s event.
The company’s exhibit included thesale of its ‘gloves born from trees’ ,which are made of natural rubber,releasing no toxic gases when burnedand biodegradable when buried in soil.
There were also games for children,
including ‘fishing’ for rubber balls madeof natural rubber. Information at thebooth included the ‘1 Pair for 1 Love’
initiative, under which the company
donates 1 yen to tree-planting activities
in Malaysia for each pair of gloves sold,A scene from the National Customer Service
Skills Contest

Sports Business:
Customer Support
Dunlop Sports Co
Co., Ltd
Ltd. constantly
works to improve customer satisfactionlevels through prompt, polite service;for example, it has established the Customer Service Office and the After Service Centers.

35

The Dunlop Home Products Ltd.
Ltd boothat Earth Day TokyoSUMITOMO RUBBER GROUP CSR REPORT 2015

the Pink Ribbon breast cancer fund, andeducation activities encouraging men to
do more housework and child-rearing.

Promoting CSR Procurementin Cooperation with Suppliers
The Sumitomo Rubber Group aims topromote CSR procurement, encompassing not only quality, price, and delivery
time, but also legal, compliance, humanrights, and labor practices. In fiscal
2011, we gave our first CSR questionnaire to approximately 1,100 suppliers
and used the results as the basis for
opinion-exchange meetings to deepen
understanding of CSR.
In fiscal 2014, we will give thesecond CSR questionnaire to approximately 1,100 suppliers and again use
the results for opinion-exchange meetings in fiscal 2015.

Ongoing Social Contribution
T o p i c s

CSR FundIn fiscal 2009, Sumitomo Rubber Industries established a CSR fund for thefinancial support of groups working tosolve social problems in the regions
where we have business sites. With thefund, all donations from employees arematched by the company, and organizations receiving funding are selectedby our business sites and an NPO intermediary support center.
In fiscal 2014, the fund donated a
total of 8 million yen to 32 organizations in the six prefectures of Fukushima, Tokyo, Aichi, Osaka, Hyogo, andMiyazaki.

In August 2014, the Nagoya Factory signed an agreement called the ‘Urban-Rural
Exchange Partnership’ with Higashi-Hagihira Town, Toyota City, Aichi Prefecture. Under
this agreement, Toyota City aims to make the most of the characteristics of both its urban and rural areas, using thestrengths of both to make up for the shortcomings
in order to solve problems and give Toyota City ahigh standard of livability.
The Nagoya Factory has conducted tree planting and other environmental activities, and under
this agreement it will work with Higashi-Hagihira
Town to help realize a vibrant, sustainable region.
At the signing ceremony

Dialogue and Cooperation
with Local Citizens’ Groups

Communication with
Shareholders and Investors
The Sumitomo Rubber Group provides
information about management andbusiness activities for shareholders andinvestors on its IR (investor relations)
website. Its IR activities also include
quarterly briefings on company performance for analysts and institutional
investors. It also holds individual meetings with these stakeholders and hostspress conferences when necessary.
Recently, we have had ongoing
communication (called SR; shareholder
relations) with worldwide institutional
investors, who are large shareholders,to build greater mutual understanding
and trust. These direct meetings provide
greater opportunity for information provision and opinion exchange.
We will continue to reflect theideas and opinions of our shareholders
and investors in our management and
our IR and SR activities.

Nagoya Factory Signs ‘Urban-Rural Exchange
Partnership’ Agreement

The Okimizu Better Living Association, one of
th
i ti
b
fitti ffrom theth CSR FundF d
the organizations
benefitting

Cumulative Amount Donated by the CSR Fund
3,000
(10,000 yen)

2,739

2,500
2,000

1,939

1,500

1,134

1,000

584

500

233
0
2010

2011

Cumulative Amount Donated

2012

2013

2014

(FY)

The Sumitomo Rubber Group does all it
can to conduct dialogue and cooperation with local citizens’ groups, witheach Sumitomo Rubber base and the
CSR Promotion Office in charge of communications. We have held stakeholder
dialogue meetings with these groups
every year since fiscal 2009. The CSR
Promotion Office also leads activities
aimed at strengthening relations with
communities by, for example, holding
factory tours and hosting informationexchange meetings with citizens.
Through such dialogue, we strive tounderstand the effects that our businesshas on communities and work to solve
any issues that come up.
Opinions from citizens are relayed
to the relevant company divisions,discussed at management meetings,
and fed back to concerned departments so that we can improve ourservice and conduct social contribution
activities that create social and economic value for communities.
In fiscal 2014, Sumitomo Rubberbases in Japan carried out 192 social
contribution activities.

The Voice of Our Stakeholders

Sumitomo Rubber CSR Fund Helps
Citizens When and Where They Need it

Yukio Kawashima
Secretariat, Uozumin Hometown Creation Project

One of the things that citizens’ groups struggle
with is funding. Although public and private
funding is available, it is often a lot of trouble
to do the paperwork and abide by the conditions for using the funding. Considering this,the Sumitomo Rubber CSR Fund, now in its
second year, truly stands out from the rest.
After being recommended, undergoing aroutine inspection and interview, and getting
approval, the funds are soon available for use.
There are also few restrictions on expense
items so managing the funds is easy. We are
grateful that there is a fund that like this that isbased on trust and that understands the needsof citizens’ groups like us.

SUMITOMO RUBBER GROUP CSR REPORT 201536

Stakeholder Dialogue

Miyazaki Factory
All-Out Efforts andSupport in Response to
Local Challenges and Needs

Miyazaki Factory

Located in Miyakonojo City, Miyazaki Prefecture, the Miyazaki Factory has since its beginnings striven to weave atight-knit relationship with residents of the nearby residential areas.
Next year marks 40 years of operations for the Miyazaki Factory. Starting in April 2015, the factory began
holding dialogue with residents’ associations, volunteer organizations, and other stakeholder groups in Miyakonojo
City and the Okimizu district where the factory is located with the aim of gathering frank opinions and requests.
Overview of Miyazaki Factory
The Miyazaki Factory is Sumitomo Rubber’ s second
major factory in Japan after the Shirakawa Factory.
Adjacent to the factory is Dunlop Golf Club Ltd., a manufacturer of golf clubs.
Location
OpenedEmployees
Site area
Main products

3 Tohoku-cho, Miyakonojo, Miyazaki
855- 0004, Japan
1976
1,438 (as of end of December 2014)
268,000 m3
Automobile tires

Dialogue Participants
All stakeholders in the region
Yoichiro Onitsuka
Koji Nakashima
Commerce and Tourism
Department Miyakonojo
City Hall

Atsunori Motozono
Kitamoro region safety
patrol, Miyakonojo City

Hiroshi Narita

Asahi Residents’Nobuyoshi Matsushita Association Hall
Miyakonojo Oyodogawa
Sumio Kubota
SummitNakahigashihara
Residents’ Association
Yuko Noguchi
Hall
Sanyabaru Daycare,
Nakama Welfare
Isamu Miyauchi
Association
Matsunomoto Club

Tetsuya Kusumure

Matsunomoto Residents’
Association Hall

Echinops, an endangered species

Sumitomo Rubber Industries, Ltd.
Toshiaki Hojo
CSR Promotion OfficeMiyazaki Factory

Akira Iwakiri, General Affairs
Shihoko Inoue, General Affairs
Hiroshi Otsuka, General Affairs
Takuzo Iwata, Foreman
Sadanobu Kawabata,Environmental manager

Yorikazu Maruyama,
General Affairs

A superhero donated picture books
to a daycare center

Echinops, an endangered species,
was planted at a nearby elementary school

Fostering Future Generations Through Environmental Protection
Opening Factory to the Public and Planting Trees toPromote Exchange with Daycare Center and Elementary
and Junior High Schools
The Miyazaki Factory conducts CSR activities that it hopes will be carried on by today’s
young people and future generations. For some time now, the factory has opened its
gates and invited daycare center and elementary school children to take class trips to
explore and learn about the biotopes on the site.
The factory is also having local residents join in the tree planting being carried out
by the entire Sumitomo Rubber Group. Events aimed at building relations with thecommunity include an acorn-planting event held with a local daycare center, anddonations of picture books by a popular superhero as a token of thanks to the children
for gathering acorns for the event. As well, seedlings of echinops, an endangered
plant, that the Miyazaki Factory cultivated on its grounds were planted at local elementary and junior high schools. As of the end of fiscal 2014, these echinops had beenplanted at 18 elementary and junior high schools.
Requests and Opinions from Yuko
Noguchi, Sanyabaru Daycare,
Nakama Welfare Association

Requests and Opinions from
Nobuyoshi Matsushita, Miyakonojo
Oyodogawa Summit• Sumitomo Rubber has given unicorn beetles• Over five years, our 60 members have done

to a daycare center and invited children toplant seeds. Factory employees taught thechildren, who were planting seeds for the
first time, how to plant the seeds and how
they grow. I also found this educational.

• Whenever children are invited to the factory

grounds or taken on class trips by Sumitomo
Rubber, employees always take good care ofthem, so those of us who work at the
daycare center feel our children are safe.

• Participation in the dialogue allowed me tolearn just how much Sumitomo Rubber isdoing for the community. It was great tohave an opportunity to learn so much for the
first time.

many things in collaboration with Miyakonojo City, the Minister of Land, Infrastructure,
Transport and Tourism, the fisheries union,and other groups. The Oyodogawa Children’ s Summit is the largest event in Miyakonojo and is attended by both children andtheir parents. The success of this event is due
in no small part to help from Sumitomo
Rubber; for example, through support fromthe CSR Fund (see page 36) and through theSumitomo Rubber employees who volunteer
at the event.

• We held the Oyodogawa Green Offensive inJanuary 2015, and we sincerely thank Sumitomo Employees, who accounted for 37 of
the 100 participants, for their support.

• We have been talking about holding a com-

memorative tree-planting event for graduates of the local environmental sciences
university. Since Sumitomo Rubber isinvolved in tree planting, we think it would
be great if the company could join us in ourcommemorative event.

37

SUMITOMO RUBBER GROUP CSR REPORT 2015

Requests and Opinions from Isamu
Miyauchi, Matsunomoto Club• As in other parts of Japan, in Miyakonojo

City, the community, schools, and parents
work together to build community schools inthe various elementary and junior highschools. Sumitomo Rubber is one of thecorporate participants on the committee, of
which I am also a member. However, we are
not making much progress in our efforts. It
would be valuable if Sumitomo Rubber
contributed opinions from the standpoint ofa private company.

Requests and Opinions from
Hiroshi Narita, Asahi Residents’
Association Hall• The Factory has dramatically reduced its

impact on the natural environment in recent
years, but there is still a problem with factoryodors. Some odors may be unavoidable
considering it’ s a tire factory, but I would liketo see the company work with its affiliates todo everything possible to eliminate odors
from the factory.

Conclusion of Dialogue
From the Miyazaki Factory of
Sumitomo Rubber Industries, Ltd.
We are well aware that the problem of odors is
one that all tire factories are constantly struggling to solve. Sumitomo Rubber’ s odor-reduction measures are Group-wide and ongoing.
The children at the daycare center towhich we gave unicorn beetles gave us pictures
they drew of these beetles. Our employees
were overjoyed to receive these.
At the Miyazaki Factory, we still havesome things to learn about contributing to theeducation of children, society’ s leaders of
tomorrow. We sincerely hope we can build awin-win relationship with the community.

SUMITOMO RUBBER GROUP CSR REPORT 201538

Dialogue participants giveus the feedback we need,
whether their opinions aresupportive or critical
Employees helped
remove ashes following
the eruption of the
Shinmoedake volcano

Dialogue participants
get a factory tour

Local residents andSumitomo Rubber
employees join in apitch-and-putt golf
tournament

Picking up litter aroundthe factory

Helping elementary school children get toschool safely near the Miyazaki Factory

Interact with the Community and Support an Aging Society

Safety and Regional Revitalization

Helping Solve Local Problems Through Financial Supportand Human Resources

Contribute to Regional Safety and Be a Model for
Other Companies in the Region

With the aim of making the Miyazaki Factory an integral part of the community, since2007 we have opened the playing field (baseball diamond) and green belt on our
premises to the general public. In fiscal 2014, the playing field was used by about
7,600 people and the green belt visited by about 5,600 people. We have also held anannual pitch-and-putt golf tournament for employees and local residents since 2007.
About 240 local senior citizens, some of them 90 years of age and older, take part inthis event that brings us closer to the community.
Another way we strive to help is by having our employees volunteer to do things
like pick up litter in the area around the factory and wash windows of nearby buildings.
The aging population in the nearby community is a problem that is near to home
for the Miyazaki Factory. We will continue to support the elderly in the community
with financial aid from the CSR Fund and with employee volunteers.

Requests and Opinions from Isamu
Miyauchi, Matsunomoto Club

Requests and Opinions from Tetsuya
Kusumure, Matsunomoto
Residents’ Association Hall• The Miyazaki Factory allows us, the members• More elderly people means more peopleof the Matsunomoto Club pitch-and-putt
group, to use the factory playing field.
Normally, company factories do not open
their premises to the public, so we are grateful to Sumitomo Rubber for allowing thecommunity inside. We really enjoyed playing
side-by-side with Miyazaki Factory employees
at the Sumitomo Rubber-sponsoredpitch-and-putt golf tournament held on thefactory playing field. I think it’ s great that
Sumitomo Rubber has become an integral
part of the community.

suffering from dementia. And many families
cannot take care of these people. In 2014,
Miyazaki Prefecture’ s first-ever coffee shop
for dementia sufferers opened in
Tohoku-cho, Miyakonojo City. It was opened
as a place to gather for dementia sufferers,
their families, and all community members.
An aging society is not just the problem of
one community but rather a region-wideissue. We would like to open more coffee
shops like this to give more dementia sufferers a place of healing and relaxation.
This coffee shop was made possible
thanks to assistance from the Sumitomo
Rubber CSR Fund.

• The pitch-and-putt golf course in the factory
currently has only one ladies’ and men’ s
restroom. But considering the large numberof senior citizens, many of whom are
women, it would be wonderful if therestroom facilities could be expanded.

39

The opinions of locals help
us operate our factory• We also have a plan to use a small field to

SUMITOMO RUBBER GROUP CSR REPORT 2015

grow and cook our own vegetables. Since
our members are elderly we will need help
from younger people. It would be encouraging to have Sumitomo Rubber employees
volunteer to help out as part of efforts totackle issues in the community.

• Some companies hold Bon dance festivals forthe community. The Miyazaki Factory haslarge grounds with plenty of greenery, so
wouldn’ t it be wonderful to hold a Bon
dance festival where local residents werewelcome? It would be a great way to getcloser to the community.

Requests and Opinions from Sumio
Kubota, Nakahigashihara
Residents’ Association Hall

• Twice a week, 15 or 16 of us go to play

pitch-and-putt golf at the Miyazaki Factory.
We go by bicycle and have had to enter
through the main entrance, which is quite far
for us. Sumitomo Rubber therefore was kindenough to let us enter through the closer rear
entrance.

Conclusion of Dialogue
From the Miyazaki Factory of
Sumitomo Rubber Industries, Ltd.
We will remedy the situation regarding the lackof restrooms at the pitch-and-putt golf course.
We believe that the problems of an aging
society must be solved by building a support
system involving everyone in the community.
The Miyazaki Factory will do everything it canto help, and we hope that the support system
we build will be a model for other communities to follow.

To ensure the safety of children, employees at the Miyazaki Factory have since 1981
joined other community members in walking elementary school children to school.
And through the Sumitomo Rubber CSR Fund, we have provided financial assistanceto organizations that make contributions to community safety. In the area of disastermeasures, in 2010 employees volunteered in sterilization efforts during afoot-and-mouth epidemic in Miyazaki Prefecture, and in 2011 employees helped clean
up areas of excessive ash from the eruption of Shinmoedake, a volcano in the Kirishima volcano range in Kagoshima.
The number of employees at the Miyazaki Factory accounts for about 10% of
the population of the Okimizu district. Well aware of the impact we have on the community, we strive to support and interact with locals so that we can help revitalize
regional society.

Requests and Opinions from
Atsunori Motozono, Kitamoro
region safety patrol, Miyakonojo City

Requests and Opinions from Sumio
Kubota, Nakahigashihara
Residents’ Association Hall

• Safety patrols are conducted in the region,• Throughout the Okimizu district, we usedwith 112 participants and 47 vehicles currently registered.
Those who want to join the patrols musttake a course led by the Miyazaki Prefecture
chief of police, and the vehicles used must be
registered with the motor vehicle branch.
Each patrol takes about one hour andconsumes 10 liters of gasoline, and this fee,along with the registration fee, must be bornby our safety patrol.
Our patrols have resulted in a noticeable
decrease in burglaries, but we are struggling
to bear the costs and manpower needed tocarry out these patrols.

• Last year, we discovered a district with nosafety patrols, so with aid from the Sumitomo
Rubber CSR Fund we purchased a used car,got it fixed up, and had our members start
using this vehicle for patrols.

the Sumitomo Rubber CSR Fund to purchasenecessities for children’ s safety patrols, suchas member jackets, traffic safety flags, andcrosswalk markers. This has been a huge
help to us.

Requests and Opinions from
Hiroshi Narita, Asahi Residents’
Association Hall• The Okimizu district has held its sports day

every year since 1945 and 2015 marks the70th anniversary. This is the longest continuously running annual sports day in Japan. We
continue to build a community of traditionand safety in so many ways. Although Sumitomo Rubber takes active participation in
local activities, I would like to see the company become an even more integral part of thecommunity.

Requests and Opinions from Koji
Nakashima, Commerce and Tourism
Department Miyakonojo City Hall• There are plans to make Miyakonojo City abase of logistical support in case of a major
earthquake along the Nankai Trough. We
have built a helicopter landing/takeoff strip sothat relief helicopters can quickly andefficiently get supplies to those areas hardest
hit by the disaster. But the government
cannot undertake disaster measures by itself.
That’ s why it’ s important for private companies like Sumitomo Rubber to take part inpreparing and implementing these measures.

• In Miyakonojo City, there is a foundation ofcompanies from various industries called the
Kirishima Industrial Club. The aim is to get
representative of these companies together
to come up with state-of-the-art technologies
and products. I think that participation by
Sumitomo Rubber would provide further
momentum for this club’s activities.

Conclusion of Dialogue
From the Miyazaki Factory of
Sumitomo Rubber Industries, Ltd.
As exemplified by an annual sports day thathas continued for 70 years, the communities
around the Miyazaki Factory strive to revitalize themselves by organizing themselves witha purpose and then taking action. As a company located in this region, the Miyazaki
Factory strives to be a model for other companies to follow.
We will mark our 40th anniversary in
2016. We believe that the opinions of local
residents will provide the foundation for how
we operate our factory in future. We willcontinue to rely on the requests and frank opinions—whether these are supportive or critical—of locals, and on their guidance, as we strive totake even deeper root in the community.

SUMITOMO RUBBER GROUP CSR REPORT 201540

Dunlop Golf Club
Corp.

Site Report

Changshu Factory (China)

Cikampek,
Indonesia(P.T. Sumi Rubber Indonesia)(Sumitomo Rubber (Changshu) Co., Ltd.)

Number of Employees

220

Number of Employees

3,655

Number of Employees

Opened1989

Opened1997

OpenedMain Products

Let’s look at some of the CSR activities at Sumitomo Rubber’s six factories in Japan, 11 factories overseas,
and 4 affiliates in Japan.
All of these business sites carry out ongoing efforts to contribute to local communities.
See the website for overviews and examples of activities. (Scheduled to go online at end of July 2014.)
http://www.srigroup.co.jp/csr/sitereport/index.html

Indonesia Factory

Miyakonojo City,
Miyazaki Prefecture

Golf clubs

Achieved Complete Zero Waste Disposal

2006

Main Products

Automobile tires, golf balls

Achieved Complete Zero Waste Disposal

2008

Jiangsu,
China

2,300
2004

Main Products

Automobile tires

Achieved Complete Zero Waste Disposal

2006

Note: Listed sites have obtained ISO 14001 Global Integrated Certification, and the environmental management system is unified under the certification number YKA400407.

Automobile tire
products

Tennisproducts

Golf
products

Shirakawa City,

Shirakawa Factory Fukushima Prefecture

Nagoya Factory

Factories in Japan

Toyota City,
Aichi Prefecture

Several times a month, employees at the Izumiotsu
Factory help elementary school children get homesafely.

1961

Employees helped install a home-made bee attracter at a kindergarten near the Shirakawa Factory toprotect the children from danger.

Miyazaki Factory

Miyakonojo City,
Miyazaki Prefecture

Main Products

Automobile tires

Achieved Complete Zero Waste Disposal

Ichijima Factory

Tamba City,
Hyogo Prefecture

1,438

Number of Employees

193

Opened1976

Opened1996

Automobile tires

Main Products

Achieved Complete Zero Waste Disposal

2004

Main Products

Golf balls

Achieved Complete Zero Waste Disposal

2005

To prevent the outbreak of dengue fever, employees conducted a mosquito extermination.

Employees volunteered to collect tree seeds on
Yushan Mountain to help protect the environment.

Hunan Factory (China)

Thailand Factory

Brazil Factory

Hunan,
China

Number of Employees

2012

Main Products

Automobile tires

The factory invited nearby companies to observe its
accident simulation training.

KwaZulu-Natal
Province,
South Africa

Employees

1,121OpenedMain products

6,204

Opened2006

Main Products

Automobile tires

Achieved Complete Zero Waste Disposal

1973
Automobile tires

Paraná,Brazil(Sumitomo Rubber do Brasil Ltda.)

Number of Employees

2009

Number of Employees

1,043

Opened2013

Main Products

Automobile tires

Many Thailand Factory employees join blood donor
clinics every year.

For two days in November 2014, 50 employees took
part in the planting of trees next to nearby roads.

Thailand Factory

Zhongshan Factory (China) Guangdong,
China(Natural Rubber Processing)(Sumitomo Rubber South Africa (Pty) Limited)

Opened1972
Number of Employees
441
Blankets for offset printing presses,
Main Products
marine fenders, Precision rubber parts for office machines,
gas tubing, vibration control rubber dampers,
Precision rubber parts for medical equipment
Achieved Complete Zero Waste Disposal
2005

Rayong,Thailand(Sumitomo Rubber (Thailand) Co., Ltd.)

850

OpenedSouth Africa Factory

Kakogawa City,

Kakogawa Factory Hyogo Prefecture

Number of Employees

A large green curtain was constructed along theoffice building of the factory.

(Sumitomo Rubber (Hunan) Co., Ltd.)

Nagoya Factory employees volunteered as traffic
safety personnel during a traffic safety campaign sponsored by the Toyota City Traffic Safety Association.

1,328

Opened2004

Izumiotsu City,
Osaka
Prefecture

2004

Number of Employees

1974

Achieved Complete Zero Waste Disposal

Factories overseas

Number of Employees
400
Opened1944
Main Products
Automobile tires,
Precision rubber parts for medical equipment
Achieved Complete Zero Waste Disposal
2005

1,705

OpenedAutomobile tires

Affiliates in Japan

Izumiotsu Factory

Number of Employees
Main Products

Udonthani,
Thailand(Zhongshan Sumirubber Precision Rubber Ltd.)(Sumirubber Thai Eastern Corporation Co., Ltd.)

Number of Employees

282

Main Products

Opened2010

Natural rubber products

Achieved Complete Zero Waste Disposal

2013

Number of Employees

530

Opened2001

Main Products Precision rubber parts for office machines
Achieved Complete Zero Waste Disposal

2008

At the ‘Shiki no Mori’ GENKI Forest in Kanemidake,Miyazaki Factory employees held the first tree
planting event, beginning work on the ‘Hagukumi
no Mori’ (satoyama; community forest)

At the highway rest stop near the Ichijima Factory,
employees handed out unicorn beetle larva cultivated on the factory grounds.

Bulbs of boneset, a near threatened species, wereplanted along a riverbed in Kakogawa.

One of the company’ s social contribution activities
was delivering supplies to towns along the route of
a company-sponsored car rally.

Garbage bags were donated to a local elementary
school as part of environmental protection activities.

Items such as used clothing and stationery items at
employees’ homes were collected and donated tochildren and families in impoverished areas.

Dunlop Retread
Service Co., Ltd.

SRI Engineering
Ltd.

Kobe City,
Nakata Engineering Hyogo PrefectureCo., Ltd.

Vietnam Factory

Malaysia Factory

Thailand Factory

Ono City,
Hyogo Prefecture

Kakogawa City,
Hyogo Prefecture(Sumirubber Vietnam, Ltd.)

Number of Employees

2010

Number of Employees
171
Opened2003
Business Outline
Design/manufacture of metallic
molds for tire production
Achieved Complete Zero Waste Disposal
2008

Employees of Dunlop Retread Service Co., Ltd. took
part in a competition of the Ono City Fire Brigade.

Every year in June and October, employees pick up
litter in the vicinity of the site.

Employees picked up litter on Azur Maiko beach.

Number of Employees

57

OpenedBusiness Outline

1972
Manufacture/sale of retread tires

Achieved Complete Zero Waste Disposal

41

Industrial andother products

SUMITOMO RUBBER GROUP CSR REPORT 2015

Business Outline

128

Opened1914

Design/manufacture/sale of machines
and equipment for the manufactureof rubber products

Achieved Complete Zero Waste Disposal

2008

Hai Phong City,
Vietnam(Sumirubber Malaysia Sdn. Bhd.)

Number of Employees

969

Number of Employees

Opened2007

OpenedMain Products Precision rubber parts for office machines

Main Products

Achieved Complete Zero Waste Disposal

Achieved Complete Zero Waste Disposal

2009

Traffic safety awareness activities were held withthe aim of preventing accidents involving motorcycles, a common mode of transportation.

Kedah,
Malaysia(Tennis Balls)
606
1981

Rubber gloves
2010

Employees planted trees together with students
from Universiti Sains Malaysia.

Prachinburi Province,
Thailand(Srixon Sports Manufacturing (Thailand) Co., Ltd.)

Number of Employees

365

OpenedMain Products
Achieved Complete Zero Waste Disposal

2007

Tennis balls
2011

In nearby Tab Lam National Park, employees andlocal junior high school students planted talipat
palm, an endangered species.

SUMITOMO RUBBER GROUP CSR REPORT 201542

History of CSR Promotion and Materiality Identification
The Sumitomo Rubber Group documents and reports on its CSR promotion and materiality identification.
We reflect on the successes and shortcomings of our activities thus far and apply what we have learned to future CSR.

2008

2010

Fiscal 2008: Formulation of Basic CSR Policy
and GENKI CSR Guidelines (5 Areas
Comprising 13 Indicators)
To energize our CSR activities and become a corporate group
trusted by society, in 2008 the Sumitomo Rubber Group formulated its Basic Philosophy of CSR and its CSR Guidelines (fiveareas comprising 13 indicators) made up of the five areas ofGreen (green initiatives), Ecology (reducing the environmental
impact of business activities), Next (development of next-generation technologies and products), Kindness (kindness to employees), and Integrity (integrity for stakeholders).

Promoting Dialogue with Stakeholders

Dialogue with Experts
We began holding dialogues with experts in 2009 in order toadvance our CSR activities.
This dialogue was held up until 2013, as we gatheredvaluable opinions from six experts in various fields. These
opinions are used to set targets and improve the quality of
our CSR.

2012
Fiscal 2011: Key Items (Materiality) Identified
Among 13 Indicators of CSR Guidelines
In fiscal 2011, in order to boost the sustainability of the Sumitomo Rubber Group and society as a whole, we consideredwhich of the 13 indicators had the most impact on the Groupand our stakeholders, and identified such key indicators (interms of ‘materiality’, meaning level of importance in CSR).
To identify materiality, we looked at the results of questionnaires for stakeholders and other fact-finding methods.

2014

2015

2016

Considering Business Environment Changes,
6 Indicators were Added to Existing 13
in Fiscal 2014

Fiscal 2015: Step Up Activities by Considering
Materiality (Key Issues) Based on
International Guidelines

Considering the impact that business environment changes
had on stakeholders and society as whole, in 2014 we used
the results of questionnaires to suppliers and employees tocome up with six additional indicators key to CSR activities.
We now have 19 key CSR indicators to use when carrying out the PDCA cycle in our CSR activities.

With the Sumitomo Rubber Group’s business expanded into
countries around the world, we conduct and report on CSR
activities in abidance with the internationally recognized G4
Sustainability Reporting Guidelines.
We are also using G4 to review the materiality of the 19
indicators of our revised CSR Guidelines. Guided by the stipulations in the G4 Sustainability Reporting Guidelines, we areplanning and gradually implementing measures aimed atadvancing our CSR activities.

Promoting Dialogue with Stakeholder

Promoting Dialogue with Stakeholders

Listening to Stakeholders, Conducting Surveys

Dialogue with Communities

Information was gathered in the following ways and materiality
analyzed.
• Supplier CSR interview surveys• CSR Report readers’ questionnaire (employees, business partners, etc.)• Employee questionnaire• Comprehensive consumer survey in 2010
• Questionnaire to individual shareholders

In 2013, we began holding dialogue with local residents, NPOs,
and local governments in order to improve our relationship withthe communities in which we are located.
The first such dialogue was at the Shirakawa Factory(Fukushima Prefecture). We held our second dialogue in 2015
at the Miyazaki Factory (Miyazaki Prefecture).

Challenges in improving our CSR activities

Challenge 1• Determine materiality from standpoints of both the company
and society.
Assumetargets that take into account stipulations of G4.
•

Challenge 2• Hold dialogue with stakeholders to discuss the assumed ma-

13 Indicators of the GENKI CSR Guidelines, and their Materiality (2011)teriality and targets.

Important Information for Stakeholders(12) Promoting dialog with stakeholders[Business Partners]
Safety/Health (risks and safety measures)
Human Rights/Labor (working hours and wages)
Fair Trade (from SCM perspective)[Consumers/Customers]
Marketing Communication[Shareholders/Investors]
Information Disclosure( 6 ) Pursuing safety and comfort, economy, and quality( 3 ) Reducing CO2 emissions( 7 ) Fostering human resource development and making jobs rewarding( 8 ) Creating a safe, employee-friendly workplace[Business Partners]
Information Disclosure and Management
Fair Trade (organization and system)
Human Rights/Labor (various types of harassment)(13) Keeping social contribution in constant motion
Contributing to Local Communities( 1 ) Helping to curb global warming by planting trees( 2 ) Fostering better relationships with communities throughtree planting( 4 ) Implementing worldwide environmental management( 9 ) Achieving a work-life balance(10) Ensuring thorough corporate governance(11) Ensuring thorough complianceBusiness Management

Important Information for the Sumitomo Rubber Group43

SUMITOMO RUBBER GROUP CSR REPORT 2015

• Based on stakeholder opinions and advice, review and revise
Community dialogue at the Shirakawa Factory

relevant items.
• Expand CSR activities in the areas of high materiality.

19 Indicators of the GENKI CSR Guidelines (2014)

Education/Awareness Raising(12) Promoting dialog with stakeholders

Challenge 3( 5 ) Developing environmentally friendly products

Green
Ecology
Next
Kindness
Integrity

Green Initiative

Helping to curb global warming by planting trees.
Fostering better relationships with local communities through tree planting.
Protecting Biodiversity

Ecological Process

Creating a Low-Carbon Society
Building a Recycling-Oriented SocietManaging Environmental Pollutants

Next-Generation
Product Development

Implementing worldwide environmental
management.

Developing environmentally friendly products.
Pursuing safety and comfort, economy, and quality.

Kindness to Employees

Fostering human resource development andmaking jobs rewarding.
Creating a safe, employee-friendly workplace

Achieving a work-life balance.
Promoting Diversity
Respect for Human Rights

Integrity for Stakeholders

Ensuring thorough corporate governance.
Promoting dialog with stakeholders.
Ensuring thorough compliance

Keeping social contribution in constant motion.
Supply Chain Management

SUMITOMO RUBBER GROUP CSR REPORT 201544

Fiscal 2014 Targets and Results

Based on our GENKI CSR Guidelines, we have verified the progress and successes of our fiscal 2014 Action Plan and have set
targets for fiscal 2015. Let’s look at the main targets.

2015 Target

ActionPlan

2014 Target

Self-Evaluation

Check

Do

2014 Results

Note: Items marked with a are verified by third parties. See our website for details on Fiscal 2014 Activities and Fiscal 2015 Targets.
(Scheduled to go online at end of July 2015.)

CSR Guidelines

Green

Green Initiative2014 Results and 2015 Target (Excerpt from major items)

Plan 2014 Target

Do 2014 Results

Helping to curb global
warming by planting trees.

• Set targets and proceed with the Million Trees for Local Forests project• Continue greening activities• Million Trees for Local Forests project: 90,385 trees

100%

Fostering better relationships
with local communities
through tree planting.

• Continue with the Acorn Project Plant 20,000 trees a year

• Acorn planting in Japan Fiscal 2014: 21,436 trees planted

100%

Protecting Biodiversity• Prepare the biotopes• Continue to protect and raise endangered species• Fireﬂies raised at biotopes at Nagoya Factory and
Miyazaki Factory• Boneset cultivated at Kakogawa Factory planted by river100%• Build biotopes• Protect and cultivate endangered species

100%
95%

• ≥2.6% reduction over previous ﬁscal year100%

• ≥2.6% reduction over previous ﬁscal year
• 1.8% reduction per unit over previous ﬁscal year

Creating a Low-Carbon
Society

Ecology

Ecological Process

Building a Recycling-Oriented
SocietNext

Kindnessin Kakogawa

Energy saving (crude oil equivalent per unit):
9% reduction over the level in ﬁscal 2000

8.8% reduction• (Six factories in Japan)

CO2 emissions during the manufacturing process:
15% reduction over the level in ﬁscal 1990

11% reduction• (Six factories in Japan)

1% reduction in discharged waste per unit
(excepting valuable substance to be recycled)
over the level in ﬁscal 2011
≥7% reduction in discharged wastewater over levelin ﬁscal 2005

10% reduction• Proceed with Million Trees for Local Forests project

Expand from just weeding to include forest thinningand planting trees• Proceed with Acorn project

Expand exchange with communities, including giving
away seedlings• ≥2.7% reduction per unit over previous ﬁscal year

Implementing worldwide
environmental management.

• Maintain ISO 14001 Global Integrated Certiﬁcation• Maintained and continued

Developing environmentallyfriendly products• Expand sales of environmentally friendly products• Products developed and sold100%

• Expand sales

Pursuing safety and comfort,
economy, and quality• Expand sales of low-rolling-resistance tires and fuel-efﬁcient tires• Fuel-efﬁcient ENASAVE RV504 released

100%• Expand sales

Fostering human resource
development and making jobs
rewarding.

• Develop human resources with a global perspective.

• Under overseas dispatch training, begun in 2008,

100%

Creating a safe,
employee-friendly workplace• Proceed with risk assessment and other safety management matters, and with

• Increase in number of workplace accidents and in80%

Achieving a work-life balance.

• Get more male employees to take childcare leave• Get more employees to use shortened working hours for childcare leave• 2 men used system for childcare leave for men• 47 women used shortened working hours for childcare leave• Interviews conducted with female employees on

80%

Promoting Diversity• Help employees achieve their own work style to tap individual employee strengths• Total of 10 women in managerial positions(six more than in ﬁscal 2014)100%• Help employees achieve their own work style to tap

Respect for Human Rights• Hold human rights-related training• Human rights-related training held100%

• Continue holding human rights-related training

Ensuring thorough corporate
governance.

• Improve the corporate control system

100%

Promoting dialog withstakeholders.

• Improve compliance training100%• Conduct ongoing efforts to strengthen the internal
control system• Comply with the Corporate Governance Code• Ensure thorough Group-wide abidance with Corporate

Ensuring thorough compliance• Promote dialogue with a range of stakeholders• 3 outside auditors were appointed among the ﬁve
corporate auditors• Of the directors, 2 were outside directors• Lecture held on anti-dumping levies• Various brieﬁngs held at worldwide group companies• Miyazaki Factory held dialogue with residents’100%• Promote dialogue with a range of stakeholders

Keeping social contribution inconstant motion.

• Work together with NPOs (continue and expand activities)• Manufacturing and environmental workshops held,100%• Work together with NPOs (continue and expand activities)

Supply Chain Management• Promote CSR in the supply chain• Questionnaire on CSR procurement given to suppliers

100%• Promote CSR in the supply chain

Integrity for Stakeholders

4.9% reduction• (Six factories in Japan)

Domestic Tire Category Total emissions of organic solvents:
81% reduction over the level in ﬁscal 2000

81% reduction• (Six factories in Japan)

NOx, SOx, and dust:
80% reduction over ﬁscal 2005

83% reduction

mental health-related and other health administration matters

Kindness to Employees

Integrity

Cumulative total: 139,602 trees planted

Action 2015 Target

98%
100%
100%
100%

Managing Environmental
Pollutants

Next-Generation
Product Development

planted; cumulative total: 1,485,277• (Six factories in Japan)• (Six factories in Japan)

Check Self-Evaluation*

cumulative total of dispatched employees reached 375

number of workdays lost to illnessbalancing child-rearing and work

associations, NPOs, and local governments
information exchange meetings held

• ≥3.8% reduction per unit over previous ﬁscal year
• ≥80% reduction over ﬁscal 2005
• Maintain and continue• Foster globally focused human resources throughtraining to provide the necessary knowledge and skills,
and foreign language training that will improve
employees second language skills• Train employees to be safety conscious and sound inmind and body• Get more male employees to take childcare leave• Get more employees to use shortened working hours
for childcare leave
Implement
the daycare support system•
individual employee strengths

Philosophy and Corporate Code of Conduct

Note: Self-assessment calculation method: Use the baseline year (1 – reduction ratio)
to calculate as follows.

1
45

SUMITOMO RUBBER GROUP CSR REPORT 2015

target value – actual value
target value

100
SUMITOMO RUBBER GROUP CSR REPORT 201546

Independent Verification Report

Third Person’s Comments

To enhance the reliability of this report and the environmental data disclosed on our website, we underwent verification bya third party.
Data marked with a(pages 24, 25, 45) has been verified.
The target data for verification and the verification criteria used are as follows.

Evolving CSR Activities
It has been several years since the Sumitomo Rubber Group began including third-person comments in its CSR Report. With each passing year I see progress, and it is
becoming increasingly clear that Sumitomo Rubber is intent on having value creation
and CSR activities progress hand-in-hand.
It is clear from President Ikeda’s message that the company is pursuing economic
value and social value; what’s more, the company deserves praise for including theseon the report’s Philosophy and Vision page as well. However, compared to economic
value and its numerical targets, social value is only dealt with using qualitative
statements. It would be wonderful if numerical targets were attached to social value
as well. The report provides a wide range of numerical information, and I would like to
see an overall more systematic approach as the company steps up its ongoing efforts.

1. Total global CO2 emissions and emissions per unit
Criteria: ISO 14064-1
2. Amount of water used, wastewater, and waste discharged (excluding valuable substances for recycling)
Criteria: LRQA’s Report Verification (pursuant to ISAE3000, AA1000AS, and GRI)

Katsuhiko Kokubu

Professor at the Graduate School ofBusiness Administration, Kobe University
Completed the doctoral program in businessadministration at Osaka City University Graduate
School. After serving as assistant professor at
Osaka City University and Kobe University, heassumed his current position in 2001. Appointed
head of Graduate School of Business Administration at Kobe University.
His recently published works include “Anaccounting System that Supports Environmental
Business Decision Making” (Chuokeizai-sha,Inc.) and “Environmental Management andAccounting” (Yuhikaku Publishing Co., Ltd.).

Materiality Identification
This year’s report has a section titled History of CSR Promotion and Materiality
Identification. It should be noted that in this section we have a detailed explanationof materiality. Materiality is a concept of the highest priority in guidelines such as the
GRI’s Sustainability Reporting Guidelines and IIRC’s Integrated Reporting Framework.
Sumitomo Rubber has stressed materiality in its CSR activities and from this report
we can see that it plans to step up these efforts.
To make materiality integral to CSR activities, the feedback process is just as
important as the initial planning process. A feedback group including opinions fromoutside the company has been created for CSR activity assessment, something I believeholds the key to future progress.

Dialogue with Key Stakeholders
Since CSR should be a company’s window to society, stakeholder relations are crucial.
In this sense, I am pleased that Sumitomo Rubber is following up the stakeholder
dialogue it began at the Shirakawa Factory last year with stakeholder dialogue at the
Miyazaki Factory. A factory is where a company produces its value, so it’s no exaggeration
to say that the environment around a factory can support this value creation. There isan intimate connection between a company’s contributions to a community and thelabor that the community provides to the company.
I hope that Sumitomo Rubber continues these types of activities and expands
them beyond Japan to include its worldwide bases. I also think it would be a valuablefor the company to get feedback on how opinions from past dialogue sessions havebeen reflected into company policies.

In response to the third person’s comments
I would like to once again thank Professor Kokubu for providing the third-party opinion. He makes
objective observations on things like materiality and stakeholder dialogue, and at the same time is generous in his praise of our company.
Of the ongoing opinions we have received, a common theme has been the importance of KPIs (keyperformance indicators) and their follow-up. We recently held stakeholder dialogue at the Miyazaki
Factory, and we must utilize the stakeholder opinions expressed at that time. We are fully aware that if wecannot do this then we will be undeserving of any praise. In response to Professor Kokubu’s comments, wewill remain keenly aware of global CSR management in all fields, and answer a range of stakeholder needs
in efforts to make our CSR activities more transparent.

47

SUMITOMO RUBBER GROUP CSR REPORT 2015

Toshiaki Hojo

General Manager,
CSR Promotion Office

SUMITOMO RUBBER GROUP CSR REPORT 201548

Honors and Certifications from Outside Organizations

GreenGreen Initiative•Honored as a company contributing to keeping the ocean clean at the July 2014 Marine Day
Awards sponsored by Japan’s Ministry of Land, Infrastructure, Transport and Tourism (MLIT)•P.T. Sumi Rubber Indonesia won INDONESIA GREEN AWARD

Editorial Policy
The Sumitomo Rubber Group has been conducting CSR activities

Target Readersin five key areas represented by the GENKI acronym (see page

Customers, employees, shareholders/investors, business
partners, local communities, general consumers, NPOs/NGOs,
administrative agencies

20) of its CSR Guidelines as stipulated in our Fundamental
Policy on CSR Activities. This report summarizes the results ofCompanies Covered by the Report

the CSR activities carried out by the Group in fiscal 2014.
As our key tasks for the near future, we have positioned ‘Go
for NEXT’, the slogan of VISION 2020, and the three facets of ourengine for growth: the challenges of new markets, an insatiable
drive for innovation, and entering new business fields. For eachof these three facets, this report contains a feature article: Devel-

Reducing
Environmental Impact

Ecology•Sumitomo Rubber (Hunan) Co., Ltd. and Sumitomo Rubber do Brasil Ltda. certified for ISO
50001•Sumitomo Rubber do Brasil Ltda. certified for ISO 14001

oping Next-Generation Environmentally Friendly Products, CSR in
Emerging Countries, and Spreading the Use of Medical Rubber.
Basic corporate CSR information and detailed data notcovered in this report are available on the CSR Activities sectionof the Sumitomo Rubber Industries website (scheduled to go

Group companies in Japan and overseas, with a focus on the six
factories operated by Sumitomo Rubber Industries, Ltd. andDunlop Sports Co., Ltd.
Referenced Guidelines• Sustainability Reporting Guidelines Version 3.1 and Version 4,
published by the Global Reporting Initiative (GRI)• Environmental Reporting Guidelines (Fiscal 2007 edition),published by the Ministry of the Environment

Period of the Report
Fiscal 2014 (January 1, 2014 to December 31, 2014), with some
information from outside of this period

Publishing Dateonline at end of July 2015).

June 2015 (planned publishing date for the next edition: June 2016)••ENASAVE 100 won the 2014 Energy Conservation Prize, Agency for Natural Resources and

ENASAVE 100 won the Keidanren Chairman’s Prize at the 24th Global Environmental Awards
Energy Director-General's award

Next

Next-Generation
Product Development•

Sumitomo Rubber was first in 2014 rankings by Nikkei Architecture (published by Nikkei BP) of
manufacturers of earthquake-proof and seismic-damping building materials•Named one of Top 100 Global Innovators in 2014 by Thomson Reuters•Sumitomo Rubber received accreditation in ISO/IEC 17025 for tire performance testing•ENASAVE 100 won ??Manufacturing Civilization Mechanism, Secretariat Award, in 2014 Ultra

Disclaimer

Third Person’s Comments

Besides facts on the past and present of the Sumitomo Rubber Group, thisreport contains projections based on forecasts and future management plans.
These projections are based on assumptions and judgments from information
available at the time this report was made. Actual future results may differ
from these projections.

Comments from an expert are included in order to adopt an
objective perspective on the report. (See Page 48.)

Type of Reporting Media

Manufacturing Parts Awards??

•ENASAVE 100 won second prize in the tire and wheel category of the 27th Nikkan Jidosha

Feature reportss

Shinbun Product Awards

Brochure

Reports of activities
undertaken ina specific year

Kindness

Kindness to Employees•Shirakawa Factory certified for OHSAS 18001•P.T. Sumi Rubber Indonesia, Sumitomo Rubber (Hunan) Co., Ltd., and Sumirubber Thai Eastern

DetailedreportWebsiteReporting centered around
our GENKI CSR Guidelines

Corporation Co., Ltd. certified for OHSAS 18001

Updatedfrequently

Reporting centered around our
stakeholders and environment
http://www.srigroup.co.jp/csr/

Accessibility of Report

Integrity

Integrity for Stakeholders

49•Nagoya Factory signed an agreement called the ‘Urban-Rural Exchange Partnership’•Won ?? Auditing Committee Chairman’s Prize?? in the Environmental Communication Awards•Ichijima Factor received a letter of appreciation from a social welfare organization in Hyogo
Prefecture

SUMITOMO RUBBER GROUP CSR REPORT 2015

The main indictors showing financial capital and non-financial capital are included as Main Financial Indicators
and CSR Indictors. We report on some of our value-creation through business activities.
Page3-4
Besides making clear the relationships between aspects
such as the Long-Term Vision, Sumitomo Business Spirit,
SRI Way, and Basic Philosophy of CSR, we examine our
pursuit of economic value and social value and introduce
how the Sumitomo Rubber Group is working towards
realizing a sustainable society.
Page5-6

We report on stakeholder dialogue activities held at the
Miyazaki Factory, which follow on similar efforts fromthe previous year that are aimed at creating amicable
relations with communities and having stakeholders join
Page37-40
us in efforts to contribute to society.
To advance our CSR activities, we introduce past CSR
efforts including the formulation of philosophies andpolicies, materiality identification, and dialogue withoutside experts. We also look at challenges we face inadvancing CSR.
Page43-44

SUMITOMO RUBBER GROUP CSR REPORT 201550