SUMITOMO RUBBER GROUP CSR Report 2010

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

CSR Promotion Office

TEL.+81-78-265-3001 FAX.+81-78-265-3111

http://www.srigroup.co.jp/
Registered mark of the Japanese Association of
Assurance Organizations for Sustainability Information

2010.9.

191

SUMITOMO RUBBER GROUPCSR Report 2010

Contents

SUMITOMO RUBBER GROUPCSR Report 2010

03
05

Worldwide BusinessPresident’s Message

Toward the Next
Century
Taking Action to Raise Employee Awarenessin Technologies, Production Expertise andHuman Resources

07

CSR Management

09

G

Planting One Million Trees
Around the World

Green initiative

reen

13

Preserving Local Forests to Curb
Global Warming and Interact With
the Community

E

Ecological process:
Reduce environmental burden
from business activities

cologyStanding by Commitments as
an Eco-First Company

An Industry Leader in Positive
Environmental Protection

N

Accelerating the Development
and Spread of Fuel-Efficient Tires
Complying with Tire Labeling
23
Regulations

Next-generation
product development

ext

Developing Tires with High Environmental
Performance, and Making Tires Safe andComfortable, Economical, and of High Quality

K

19
21

25
27

Work-Life Balance for Ways of Work
29
Distinctive to Sumitomo Rubber

Kindness to employees

indness

Helping Employees Develop their Abilities
Zero Danger and Zero Labor Accidents

Create an Environment where
Employees Have Comfortable,
Rewarding WorkI

Customer Safety Comes First
Developing and Spreading the Use ofEnvironmentally Friendly, Safe Products

31
32

For Customers
Shooting for Improved Satisfaction 33

Integrity for stakeholders

ntegrity

For Suppliers
For Shareholders and Investors
For Local Communities
Corporate Governance

Earnest Dialog Helps Win the Trustof Society

35
36
37
39

The CSR Report in Printed
and Digital Forms
CSR Report(printed version)
We tried to focus on
the top priority issues
in line with the GENKICSR Guidelines, thus
making it easier forreaders to understandthe main themes of
our CSR.

CSR Web Site

Site Reports
Independent Assurance Report

40
48

Global Environmental Data

47

Disclaimer
This report includes forecasts, expectations, and plans about the Sumitomo Rubber Group. These areassumptions and judgments made based on the information available at the time this report was written andtherefore may differ from future business activities and business performance, for which the Sumitomo
Rubber Group bears no responsibility.

01 SUMITOMO RUBBER GROUP CSR Report 2010

Sumitomo Rubber Industries, Ltd.,published its Environmental Reportfrom 2001 and from 2005 its Social andEnvironmental Report. These publications have reported on the Company’sefforts to be a socially responsible
manufacturer through compliance,
product quality and safety, and environmental protection. In February 2008,
with the aim of strengthening its
previous CSR activities, the Sumitomo
Rubber Group established its CSR
Activities’ Fundamental Philosophy andchanged the name of this publication to
the CSR Report.
This year’s edition, the third as the
CSR Report, is organized around the“GENKI” CSR Guidelines stipulated in our
CSR Activities’ Fundamental Policy: Greeninitiative; Ecological process: Reduce
environmental burden from businessactivities; Next-generation productdevelopment; Kindness to employees;
and Integrity for stakeholders.
Through efforts that include incorporating the opinions of experts, we have
tried to make this report clear with themost important activities for both Sumitomo Rubber and its stakeholders. We
also tried to include opinions fromstakeholders and from the employees
central to the activities described ineach section.

15
17

Take Active Steps to Curb Global Warming
Contribute to the Creation of a
Recycling-Oriented Society
Boosting Environmental Management

Editorial Policy(Japanese only)

The Web site includes
comprehensive
information notcovered in the printed
version. Stakeholders
can now more easily
search the site for the
specific information
they need.

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

Main Improvements to2010 CSR Report
made the printed version•ofWethehavereport
more manageable

for readers by decreasing thenumber of pages and concentrating on our most important
activities.

Companies Covered bythis Report
This report covers a portion of groupcompanies in Japan and overseas, witha focus on the six factories operated by
Sumitomo Rubber Industries, Ltd., SRI
Sports Ltd.. On page 47, you will findenvironmental performance data forfive domestic affiliates, seven overseas
production bases, and 36 domestic
and overseas non-production bases.

Period of the Report
Fiscal 2009 (January 1, 2009 to December 31, 2009; some information is fromoutside of this period)

Referenced Guidelines
Sustainability Reporting Guidelines,•Version
3.0, published by the Global
Reporting Initiative (GRI)

Environmental Reporting Guidelines•(2007
Version), published by Japan’s
Ministry of the Environment

Independent Assurance
Since 2008, we have been assured byan independent third-party organ toshow that this report gives credible
reporting on our environmental andsocial activities. The J-SUS symbol on
the below is proof that the reportsatisfies the J-SUS symbol standards
designated by the Japanese Association of Assurance Organizations for
Sustainability Information (http://www.
j-sus.org/).
As of this year, the information on the
CSR site (Japanese only) has also
undergone assurance by a third-party
organ.

We now have an even greater•selectionof information on our

Web site (the CSR site; in Japanese only), and the site’s main
page lists the most important
activities for each fiscal year.

We made the report better by•incorporating
the opinions ofexperts who we held dialogs within December 2009 and January
2010. (see pages 10 and 34)

SUMITOMO RUBBER GROUP CSR Report 201002

Sumitomo Rubber Industries,
Ltd. offers its main tire brands—
Dunlop, Falken, and Goodyear—for passenger cars, trucks,
buses, and motorcycles. Thesetires employ state-of-the-art
environmental technology.

Tire BusinessSports BusinessGroup company SRI Sports Ltd.
manufactures and markets
products such as golf clubs andgolf balls, and tennis rackets
and tennis balls. In addition to
the core brand of XXIO and thestrategic international brand of
SRIXON, the company sells
America’s Cleveland Golf brandaround the world.

Industrial and Other
Products Business

Sumitomo Rubber Industries, Ltd.
manufacturers and markets precisionrubber parts for office machines,
vibration control rubber dampers,
artificial turf for sports, flooringmaterials, rubber gloves, blankets
for offset printing presses, engineering and marine products, andmedical rubber stoppers.
Overseas, we run a natural rubber
gloves factory in Malaysia, andfactories making precision rubberparts for office machines in China
and Vietnam. With materials foreverything from daily household use
to industrial applications, our products
cover the entire spectrum.

Group Overview
Company: 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:¥524.5 billion (as of end of December 2009)
Number of employees (consolidated): 20,832
Consolidated subsidiaries (46 of these in Japan): 74
Affiliates (21 of these in Japan): 31

Net Sales(¥100 million)

Consolidated

Non-consolidated

8,000
Manufacturing factories
Japan (Shirakawa, Nagoya, Izumiotsu, Miyazaki)
China (Changshu/Suzhou), Indonesia, Thailand
Production companies
8 consolidated subsidiaries, 8 affiliates

Sales companies
36 consolidated subsidiaries, 13 affiliates
Tire test courses
Japan (Okayama, Nayoro, Asahikawa)R&D facilities
Tyre Technical Center

Manufacturing factories
Japan (Ichijima, Miyazaki), Indonesia,
Thailand, United States
Production companies
4 consolidated subsidiaries

Sales companies
9 consolidated subsidiaries
R&D facilities
Golf Science Center

Manufacturing factories
Japan (Kakogawa, Izumiotsu), Malaysia,
China (Zhongshan), Vietnam

Industrial andother products business

Others

82.6%

4.5%

13.4%
(Middle East,
Central andSouthAmerica,
Oceania)

Creating Value for the World and Its Future
The Sumitomo Rubber Group is drawing on its 100 years of technology and experience to create new value likeno other company before for the sake of the earth’s environment.

Net Sales by Business
Segment (consolidated)¥

524.5 billion

Net Sales by Region(consolidated)

Asia

12.5%

¥

524.5 billion(as of end of
December 2009)(as of end of
December 2009)

United States

14.2%

5,673

5,341

5,128

4,000

EuropeSports business

12.4%

6,000

Tire business

5.0%

Worldwide Business

Production companies
4 consolidated subsidiaries, 1 affiliates
Sales companies
3 consolidated subsidiaries

2,000

55.4%

2,454

0

2005

2006

2007

2008

2009

(FY)

Operating Income, Ordinary Income,Net Income (consolidated)(¥100 million)

Japan

5,245

3,211

2,871

2,726

2,302

6,050

Operating income

500

499

400

480

Ordinary income

Net income

451
389
432

300

368

256

200

287

257
195

276

200

148

100

91
10

0

2005

2006

2007

2008

2009

(FY)

Total Assets, Stockholders’ Equity,
Stockholders’ Equity Ratio (consolidated)(¥100 million)

Total assets
Stockholders’ equity
Stockholders’ equity ratio (%)

8,000

Japan
46 consolidated subsidiaries
21 affiliates

Europe andMiddle East
United States andCentral and SouthAmerica
5 consolidated subsidiaries
5 affiliates

03 SUMITOMO RUBBER GROUP CSR Report 2010

5 consolidated subsidiaries
1 affiliate

6,000

5,634

4,000

6,711

6,069

33.9

33.3

2,000

1,743

2,278

1,809

40

6,132 35
30.5

28.3

30.9

2,020

6,399

1,870

0

30
25
0

2005

2006

2007

2008

2009

(FY)

Number of Employees
Consolidated

Non-consolidated

25,000Asia and
Oceania
18 consolidated subsidiaries
4 affiliates

20,00015,00017,433

18,41020,36920,832

16,031

10,000
5,000

5,219

5,287

5,269

5,407

5,570

0

2005

2006

2007

2008

2009

(FY)

SUMITOMO RUBBER GROUP CSR Report 201004

President’s Message

A Corporate Group Offering
True Value
The “SRI Way”
Embodies Our Cherished Values
and Principles of Action

number of people with a range of values will join our group’s

Ever since it built Japan’s first modern rubber plant in 1909,

order to strengthen our overall group solidarity so that we

Sumitomo Rubber has constantly strived to offer attractive

can continue to offer products and services of consistentproducts throughout a history of changes and challenges.

quality worldwide.

business activities. We believe that we must have common
values and philosophies that form the basis of employee
actions and decisions, and standardize the way we work in

The foundation of this history is made up of the Sumitomo

By re-establishing these values and principles of action as

business spirit, the Dunlop spirit of innovation, and ourcore values of our corporate culture, we aim to revitalize ourfreewheeling, energetic spirit. Sumitomo business spirit has

CSR activities and earn the trust of society.

always been to ensure that its business benefits not only
Sumitomo, but the nation and society as well. We feel so strongly
about this that it forms the basis of the group’s corporate
philosophy. We believe that fulfilling the Sumitomo businessspirit is our group’s corporate social responsibility.
In 2009, we look ahead to another century of growtheven greater than the last one. In order to build a system

Eco-First Commitments:
An Environmental Protection“To-Do” List

Tetsuji Mino President and Representative Director, Sumitomo Rubber Industries, Ltd.

The Sumitomo Rubber Group makes environmental protection efforts a top priority of its management.

that will allow the values and principles of action that we

The Sumitomo Rubber Group was certified for the Ministry

hold so dear to be known throughout the world, we areof the Environment’s Eco-First program in March 2009 andTo curb global warming, we set a target of reducing CO2

the end of 2010, we will be using a next-generation

developing the “SRI Way.” As the number of our overseas

pledged to carry out three Eco-First commitments: takeemissions per unit from manufacturing in 2010 to less thansuper-computer in Kobe to conduct material development

bases grows, this expansion means that an increasing

active steps to curb global warming, create a recycling-

58% of 1990 levels. To this end, we switched to natural gas

simulations at the nano level. This will accelerate ourand carried out numerous energy-efficiency measures. To

development of fuel-efficient tires.

oriented society, and develop eco-friendly products.

create a recycling-oriented society, we set a target of

Sumitomo Rubber Group Philosophy and CSR Philosophy
The SRI Way

Basic Philosophy of CSRGroup Philosophy

CSR Philosophy

The Sumitomo Rubber Group aims to be known and trusted as a global corporate citizen that fulfills
its responsibility to society. It aims to achieve this by seeking the well-being of their employees, bymaking significant contributions to the betterment of communities and society, and by continuing tooffer products that make life comfortable and appealing.

The Sumitomo Rubber Group
carries out its GENKI Activities,
energetic contributions to theenvironment and communities, inorder to become a trusted
corporate citizen and part of asustainable society.

• Meet our customer expectations with ever increasing quality of products that are manufactured based on carefulobservation of what is happening in the market.
• Create new possibilities for the future by adapting to changing times based on a sound business foundation.
• Make the most of proprietary technologies and advanced research and development to create new products and services.
• Be responsible for environmental protection in all business activities and continue to develop environmentally friendly technologies.
• Create an attractive workplace that helps employees to achieve their lifestyle needs.

ValuesIntegrity &Soundness

Communication

Dedication toLong Term Goals

Personal
Development

Practical guideline• Customers first• Direct consultation• Scientific approach• Continuous improvement• Inter-personal concern• Face to face communication• Report, liaise and consult on
all levels• Break the status quowith critical thinking• Know your limitationand set a benchmark
for best practices• On the job training• Accomplish goals
and targets throughteam work

CSR Guidelines
Green initiative
Ecological process
Next-generation productdevelopment
Kindness to employees

Long-Term Vision
Be a company that continues
to provide the ultimate
value in all areas of business

Action Tag Line for Long-Term Vision

Sumitomo Business Spirit

05 SUMITOMO RUBBER GROUP CSR Report 2010

To ensure that the Sumitomo Rubber Group always has acomplete zero emissions that means zero waste to landfill, at

stable procurement of high-quality natural rubber, we have

major domestic and overseas factories. We achieved thissigned an agreement with a Thai company to establish a naturalahead of schedule, in March 2010, thanks to material

rubber plantation and a processing plant in Thailand. Research

recycling and other efforts.

into eco-tires can thus proceed at an even faster pace.
We must grow at a sustainable pace. Crucial to this is

Accelerating Development ofEnvironmentally Friendly Tires toAchieve the Long-Term Vision

fulfilling a variety of social responsibilities, such as compliance and environmental protection. We believe that this willallow us to meet society’s expectations with “true value” andthat it will eventually help us achieve our Long-Term Vision.

Seek Value for All Stakeholder

To achieve the third Eco-First Commitment, the development

We at Sumitomo Rubber look forward to your continued

The Driving Forces of Valueof environmentally friendly products, we are conducting R&D

guidance and support. We also look forward to hearing yourwith the goal of having 100% fossil resource-free tires on thecomments on this CSR report.

The ultimate front-line
operational skills,
development capabilities,
andtechnological expertise

The ultimate
earnings in theindustry segment

Integrity for stakeholders

market by 2013, and tires with 50% less rolling resistance by
2015. Although we released a 97% fossil resource-free tire in
2008, our next step is to make the ultimate eco-tire, one
100% free of fossil resources. To aid us in our development

The backbone of
the Sumitomo Rubber Group

Placing importance on integrity andsound management (Shinyo- Kakuzitsu)

basic analysis right up to new material development. Before

Respect forhuman resources

Attaching importanceto technology

Harmony withpublic interests“Sumitomo business spirit”“Spirit of innovation”“Freewheeling, energetic spirit”

of fuel-efficient tires, in January 2010, we established theMaterial Research and Development Headquarters which
speeds up development with a consistent process from

Tetsuji Mino
President and Representative Director,
Sumitomo Rubber Industries, Ltd.

SUMITOMO RUBBER GROUP CSR Report 201006

The Passing on andCreation ofTechnologies

The Passing on andCreation of
Production Expertise

Tyre Technical Center

Manufacturing Training Center,
Shirakawa Training Center

In September 2009 we completed the
Tyre Technical Center, our new hub ofresearch and development. Besides
boasting state-of-the-art tire testing
equipment, the center is environmentallyfriendly thanks to its use of solar power
generation and other technologies.
In December 2009, we created theTechno-Science Award in recognition ofindividuals and groups contributing toadvancements. This is another initiativethat is making us better at passing on
and creating technologies.

Tyre TechnicalCenterWinners of the first
Techno-Science Award

Taking Action to Raise
Technologies, Production

The Manufacturing Training Center,
Shirakawa Training Center was completed in April 2009 with the goal of
passing on Sumitomo Rubber’s philosophy on skills and manufacturing, andhelping us better expand internationally.
Training is conducted using actual
production equipment for a true handson experience. The center hosts a wide
range of training aimed at standardizing
manufacturing technology, including skills
training for managers and senior staff, andfor overseas support staff in Sumitomo

Shirakawa Training Center

Rubber’s manufacturing divisions.
Another way weencourage the passing on of production
expertise is the SRI
Technical Olympics(see page 31), whichwere held for the first time in November
2009 at the Shirakawa Training Center.

The SRI TechnicalOlympics

The awards ceremony for
the SRI Technical Olympics

Employee Awareness inExpertise and Human Resources

In October 2009, the 100th anniversary of Sumitomo Rubber, we embarked on newactivities that use the spirit of all that we have built up to propel us through our
second century.
Products
Panel discussion at
a Love Your Work!
Project seminar

The Passing on andFostering of Human
Resources
Love Your Work! Project

The Love Your Work! Times,
an in-house publication

In fiscal 2007, we started the Love Your
Work! Project to achieve one of the goals of
the Long-Term Vision, which is to nurture a
corporate culture in which employees value
their own work. Under the main theme ofthis project for fiscal 2009, “human friendly,
making dreams take shape,” employees
took action in the three areas of products,
environment, and work-life balance.
In fiscal 2010, we will step up projectrelated promotions to get more people
involved in this project.

Idea Contest Gets All
Employees Involvedin Product Planning

To get new product ideas from people
not directly involved in product development, we started a contest in which all
Sumitomo Rubber employees can sendin their suggestions. We are now looking
at making some of these 5,457 ideas
received in the contest into products.

Work-Life
Balance

Progress in the virtual tree-planting
is shown on the intranet
Environment

An exhibit of golf bags shows some of
the ideas gathered in the contest

Virtual Tree-Planting by
Saving Energy at the
Office and at Home

Sumitomo Rubber employees can “plant” onevirtual tree for every 14 kg-CO2 they reduce
through their energy consumption at home
and at the office. Our goal is to plant 237,932
virtual trees, enough to cover the land area
occupied by all Sumitomo Rubber Group sites.
More than 10,000 employees took part in
fiscal 2009 and their energy saving efforts
resulted in us “planting” 139,158 virtual trees.

Reviewing Our Work Habits
to Achieve Fulfillment at
the Company and at Home

In fiscal 2009, we held seminars and contests
with the goal of getting employees to seek
the ideal work-lifebalance for themselves and for the
Sumitomo RubberGroup. (See pages
29-30)

Informalseminars

Exhibit of winning photos
from photo contest

Toward the Next Century

07 SUMITOMO RUBBER GROUP CSR Report 2010

SUMITOMO RUBBER GROUP CSR Report 201008

CSR Management

Strengthening CSR Management
In February 2008, Sumitomo Rubber Group established its CSR Activities’ Fundamental Philosophy. In July 2008,
we established the CSR Promotion Office to take charge of CSR matters. To further energize our CSR activities,
we altered our management system and are providing as much CSR information as possible to the Group worldwide.

Dialog with Outside Experts

Expert Speaks on CSR Management
On January 23, 2010, Kanji Tanimoto, a professor in the Graduate School ofCommerce at Hitotsubashi University, was invited to speak on topics such as theSumitomo Rubber Group’s CSR management and information disclosure.

CSR Promotion Office the Coreof CSR Management System
In July 2008, the Sumitomo RubberGroup established the CSR Promotion
Office to be in charge of CSR activities
for the Group. The CSR Promotion officeconsists of the head manager, threefull-time staff, and another member who
combine with other department. In our
CSR activities, the Management Conference has the final say on all decisions.
In fiscal 2009, the CSR Promotion
Office continued dialog and cooperation

TOPICSCSR Awards System
Established
The Sumitomo Rubber Group established
the CSR Awards System to recognize
outstanding CSR efforts by workplacegroups and individuals. This system willraise understanding of and interest in
CSR and contribute to taking activities tothe next level. Employees throughout theentire group can apply on their own or berecommended by a colleague for one of
two award categories: Environmental
Contribution and Social Contribution.
At the first CSR Awards in December
2009, the Sumitomo Rubber Group gave
five Outstanding Awards, six ExcellenceAwards, and nine Encouragement
Awards out of the 52 nominees.
These awards will continue to push
employees to greater heights in their
CSR activities.

with NPOs, the provision of volunteer
information to employees, and CSR
training. We also planed to widen thescope of CSR with activities including a
CSR Awards system to raise awarenessand encourage greater participation, as
well as hold dialogs with outside experts
in the field. (see pages 10 and 34)
To continue getting more employees
involved in CSR and raising CSR awareness, we will improve systems like thereserve leave system for living support,
introduced in April 2009, which gives
employees time off for volunteering. In
July 2009, we launched the Matching Gift
System CSR fund (see page 37) and inJune 2010 began using this money tosupport NPO activities. We will strengthenties with groups we support to ensure thissystem works smoothly and effectively.

Improve Employee Awarenessthrough CSR Education
To raise employees’ CSR awareness, infiscal 2009 we held training for employees
at each tier. A total of 260 employees

09 SUMITOMO RUBBER GROUP CSR Report 2010

TOPICS
Participation in
Biodiversity Declaration
Sumitomo Rubber Industries, Ltd. is apartner in the Biodiversity Declarationof the Nippon Keidanren (Japan Business
Federation). Sumitomo Rubber sites
continuously work to preserve biodiversity; an example is the biotope at the
Shirakawa Factory.
In fiscal 2010, we plan to formulate abiodiversity policy for the Sumitomo
Rubber Group and get right to work
implementing this.

1. Environmental Contribution category
1-1 Group category
Safety and Environment Dept., Sumitomo Rubber (Thailand) Co., Ltd.
For achieving complete zero emissions in a short time period, and other environmental activities.
1-2 Individual category
Shigetoshi Koura, Miyazaki Factory, Sumitomo Rubber Industries, Ltd.
For efforts to protect the globe thistle (echinops setifer), an endangered grassland plant.
Morio Kawasaki, Shirakawa Factory, Sumitomo Rubber Industries, Ltd.
For raising fireflies and protecting the habitat of dogtooth violets.

•••

2. Social Contribution category
2-1 Group category
GENKI Group, Shirakawa Factory, Sumitomo Rubber Industries, Ltd.
For volunteer activities that promote exchange with the community.
2-2 Individual category
Hideyuki Yoshino, Material Technology Dept., Tyre Technical HQS., Sumitomo Rubber Industries, Ltd.
For 30 years of donating blood.

Professor, Graduate Schoolof Commerce, Hitotsubashi
University

the company’s Long-Term Vision, it states that it shall“Seek value for all stakeholders.” I believe the Sumitomo
Rubber Group must look at its CSR Activities’ Fundamental Policy and reflect on its business management
and CSR plans. The company must ask itself how CSR
activities will provide value, and what resources it will
use to provide value for stakeholders.
In this era of lightning-fast change, you must gather
stakeholder opinions to succeed in CSR. You must findout what stakeholders value and what they are hopingfor. And these must be reflected in your CSR plans.

CSR training session

CSR Awards: Outstanding Awards•

The CSR Awards ceremony

took part (in new employee training,
second-year and fifth-year training, newly
appointed assistant manager training,and manager training).

Kanji Tanimoto

CSR Management Aligned with
Company Management Plans
According to a survey, although about 50% of companies incorporate CSR into their medium-term management plans, only between 10% and 20% of thesecompanies actually coordinate CSR plans with theircompany management plans. To allow CSR to take root
among employees and thus raise corporate value, youmust do more than just mention CSR in your company
creed: you must make it a concrete part of management plans and ensure that those departments in chargeof CSR make and carry out definite action plans.
In fiscal 2008, the Sumitomo Rubber Group formulated the CSR Activities’ Fundamental Policy and it
must now embark on full-scale CSR management. In

Information Disclosure Suggestions
An important part of CSR management is being responsible for explaining to stakeholders exactly what you aredoing. For example, as a responsibility to employees,
the President of Sumitomo Rubber Industries, Ltd.
holds regular meetings with employees to discuss what
is on their minds. The group also conducts employee
surveys. However, Sumitomo Rubber does not reporton the content of these discussions and surveys. It also
informs suppliers of its procurement policies but thedetails of these policies are not reported on.
I think the Sumitomo Rubber Group should improve
its information disclosure by deciding exactly what
information it is going to make public and how it isgoing to report this information.

Sumitomo Rubber’s Response• Sumitomo Rubber wants to raise both economic value and social value as part of its management plans. However, thefocus has so far been on economic value: financially quantitative targets for the sake of stakeholders such as shareholders
and investors. We will promote the importance of social value, both inside and outside of the group, by re-examining
Sumitomo Rubber Group’s values and taking actions on the most pressing issues.

• In the area of information disclosure, we are currently releasing financial information in accordance with the standards of

the Tokyo Stock Exchange. The relevant departments are looking into the type of information we should disclose and its
potential effect on stakeholders.

• Regarding dialog with employees, we have updated and expanded information on our targets and activities in this area.
• Regarding procurement policies for suppliers, we report on our CSR procurement policies (scheduled for completion by
the end of fiscal 2010), which encompass issues such as human rights and labor practices. (See page 35)•

SUMITOMO RUBBER GROUP CSR Report 201010

CSR Management

Sumitomo Rubber Group CSR Activities’ Fundamental Philosophy
CSR Philosophy

The Sumitomo Rubber Group carries out its GENKI Activities, energetic contributions to the environment andcommunities, in order to become a trusted corporate citizen and part of a sustainable society.

As an Eco-First Company, we made steady progress in the> Ecology Pages 15-16
implementation of our three commitments.

CSR Guidelines
Major Activities for 2009

GreenMillion Trees Project for local forests• One
Total of 206,664 trees planted by end of fiscal 2009.

Green initiative
1. Help curb global warming by planting trees.
2. Establish better relationships with
communities by planting trees.

Ecology

Ecological process
3. Reduce CO2 emissions.
4. Implement worldwide environmental
management.

Next

Next-generation
product development•• Team ENASAVE Campaign• SRI Tire Trading Ltd. planted cherry trees in schools overseas.
• Greening activities conducted at sites in Japan and overseas.
• Held the GENKI Forest project for planting trees outside
Sumitomo Rubber sites
Sekinoo, Miyazaki Prefecture; Mimasaka, Okayama Prefecture;
Forest of Co-Existence in Sakai, Osaka Prefecture; Konoyama,
Osaka Prefecture; Tamba Namikimichi Central Park, Hyogo
Prefecture; Rokko Green Belt, Hyogo Prefecture; other locations
Donated 100 cherry trees to be planted on the site of theformer port line in Kobe.

Technical Center adopted green energy and installed a• Tyresolar power system.
measures proceeded at non-production• Environmental
bases.
• 2009 Eco-Life Notebooks were released.
Sumitomo Rubber Group was certified as an Eco-First• The
Company.
• Acquired ISO 14001 integrated certification in Japan.

Major Plans for 2010

Reference
Page

Million Trees Project for• One
local forests•

Total number of target for
fiscal 2010: 419,654 trees• Continue tree-planting insame areas as fiscal 2009.
• Expand tree-planting
activities outside the sites.
• Continue Team ENASAVE
Campaign.
Assess biodiversity and set
targets at current treeplanting areas.

switchover at the Ichijima• FuelFactory
global integrated ISO• Acquire
14001 certification.
environmental• Formulate
management guidelines at
non-production bases.

Kindness to employees
7. Foster human resource development andmake jobs rewarding.
8. Create a safe, employee-friendly workplace.
9. Achieve a work-life balance.

12. Promote dialog with stakeholders.
13. Keep social contribution in constant motion.

11 SUMITOMO RUBBER GROUP CSR Report 2010

2 Contribute to the Creation of

We planted trees in Japan and overseas> Ecology Pages 17-18> Green Pages 13-14

a Recycling-Oriented Society

We achieved complete zero emissions at all the factories of ourmain production companies >Ecology Pages 19-20
in Japan and overseas

13-14

15-22

3 Develop Eco-Friendly Products
We offer the largest number of sizes offuel-efficient tires*> Next Pages 23-24
in-house standards for environmentally friendly• Introduced
products.
voluntary standard.
• Industry
Tire labeling system established.
friendly products• Environmentally
ENASAVE RV503, ENASAVE EC202

of Environmentally• Expansion
friendly products
number of• Increase
environmentally friendly

the “Kurumin” logo for efforts to foster future• Acquired
generations.
• Held “informal workshops.”• Held a work-life balance contest.
• Held the 1st SRI Technical Olympics
training on problem detection/solving and management• Heldskills.

the work-life balance• Expandsystem.
the 2nd SRI Technical• HoldOlympics
training on problem• Expanddetection/solving and• A CSR fund was established.
• A CSR Web site went online.
• Cooperation with NPOs continued.
• Dialog with stakeholders was held.
Integrity for stakeholders • The first CSR awards were given.
• CSR Procurement Guidelines were created.
10. Ensure thorough corporate governance.
• Risk management was conducted.
11. Ensure thorough compliance.

Integrity

1 Take Active Steps to Curb Global Warming
We are taking action in production anddistribution activities

products satisfying in-housestandards.

23-28

5. Develop environmentally friendly products.
6. Pursue safety and comfort, economy, andquality.

Kindness

Fiscal 2009 Highlights

management skills.

of sizes in the category of fuel-efficient* Numbertires. (as of January 28, 2010)

We developed andpromoted products thatoffer customers safety.
29-32> Next Pages 25-26

We began work-lifebalance activities that
pursue ways of work
distinctive of ourcompany.
> Kindness Pages 29-30• Launch the CSR fund.
• Expand the CSR site.
cooperation with• Continue
NPOs.
dialogs with stakehold• Holders.
• Give the second CSR awards.
CSR Procurement• Adopt
Guidelines.
risk management• Conductand BCP.

We held dialogs withoutside experts.
9-10> Pages 10, 34

33-39

SUMITOMO RUBBER GROUP CSR Report 2010

12

G

Green

Toward the Next Century

Green initiative

reen

Planting trees at
the Thailand
Factory (right)
Governmentsponsored treeplanting event at
Sumitomo Rubber
Middle East FZE(UAE) (below)

Ecology

Next

Kindness

Tree-planting agreementswith local governments

Changshu (China)
Overseas
sales bases(U.S., Dubai,
Chile, Germany)

180

trees

Mimasaka GENKI Forest
in Okayama Prefecture

Zhongshan (China)

19,301 1,121
trees

trees

Thailand

142,824

trees

Mangroves

Sekinoo GENKI Forest in Miyazaki Prefecture

137,424 treesJapan

38,014

Vietnam

58

Planting One Million Trees
Around the World
The guidelines of the Sumitomo Rubber Group’s CSR
Activities Fundamental Philosophy include an initiative
called “Green” which involves planting trees in the areas
around our worldwide bases. To commemorate our 100th
anniversary, in fiscal 2009 we launched a project in which
we will plant one million trees at Sumitomo Rubber
worldwide bases and in the surrounding communities
over the next 20 years. We are currently on pace to reachthis goal ahead of schedule.

The Acorn Projecttrees

23,265 trees

Malaysia20
5,146

Forest of Coexistence in
Sakai, Osaka Prefecture

trees

trees

Tree planting
Indonesia Factory
employees plant mangroves

5,400 trees

Indonesia

Other tree planting
trees

14,749 trees

The One Million Trees Planting Plan: Progress in fiscal 2009

14,749 trees
23,265 trees

Fiscal 2009
cumulative

137,424 trees
31,226 trees
Uzugamori GENKI Forest
in Hyogo Prefecture (top)Tamba Romance Forest
in Hyogo Prefecture (left)

206,664 trees
One trees
millionFiscal 2029
targetThe Acorn Project
400,000 trees

Other tree-planting
200,000 trees

Mangroves

330,000 trees

Greening of Overseas Bases
70,000 trees

No. of trees plantedPlanting mangroves with citizens
in Ranong Province, Thailand

Greening Activities
in JapanIn fiscal 2008, the Sumitomo RubberGroup launched the Acorn Project.
Under the guidance of Professor Akio
Shimomura of the Faculty of Agricultureof Tokyo University, employees gather
acorns and raise broad-leaf seedlings intheir factories before planting them in theirlocal communities. By providing locals withseedlings that will grow into community
forests, the factories are forming bonds
between Sumitomo Rubber and the public.
The goal of this project is to plant
20,000 trees a year, and 200,000 trees
in the next 10 years. After 25 years, thesetrees will absorb all of the estimatedannual CO2 emissions from our factories. This symbol of Sumitomo Rubber’s
environmental protection efforts produced
about 55,125 broad-leaf seedlings in2009. Another 23,265 of earlier seedlings were also planted.

13 SUMITOMO RUBBER GROUP CSR Report 2010

Integrity

Under the GENKI Forest project, theSumitomo Rubber Group factories andoffices in Japan is taking tree-planting
outside its bases and into nearby
communities.
In fiscal 2009 in Hyogo Prefecture, wecleared underbrush and bamboo at the
Uzugamori GENKI Forest (4 hectares) in
the Rokko Green Belt in preparation fortree-planting in fiscal 2010. We also
planted trees at the Romance Forest (2hectares) in Tamba. At the GENKI Forest(2 hectares) in Konoyama, Kishiwada
City, Osaka Prefecture, we planted trees

and took part in a local festival.
We are also signing tree-planting agreements with local governments around
Japan. These agreements cover the
Sekinoo GENKI Forest (1 hectare) for the
Miyazaki Factory in Miyazaki Prefecture,
the Mimasaka GENKI Forest (1 hectare)for the Okayama Test Course in Okayama
Prefecture, and the Forest of Coexistencein Sakai (2 hectares) for the Izumiotsu
Factory and Head Office in Osaka
Prefecture. More such agreements andforests are planned.

Outline of the Acorn Project
The Sumitomo Rubber Group’s
employees andlocal community residents(Cooperate with community residents) Seedlings
Each factory’s contact

Seedlings offered to
local communities

Acorn Bank
Nursery field at a factory Seedlings(Acorn Bank)

Various kindof acorns

Plant trees inlocal communities

Seedlings(municipalities, schools,
residents’ organizations, etc.)

Plant trees at each
operating bases

Nurture local
forests

Team ENASAVE
Campaign
The Sumitomo Rubber Group launched
the Team ENASAVE Campaign in fiscal
2009 to get customers involved inplanting trees.
The goal of the campaign is to contribute to the environment through ourtire business. For every set offuelefficient ENASAVE series tires (seepages 23-24) a customer purchases,
we plant one mangrove seedling inRanong Province, Thailand. The campaign
proved a big hit and in fiscal 2009
customer tire purchases allowed us toplant 137,424 seedlings.
Through the Team ENASAVE Campaign,
we are working with customers toprotect the Earth’s natural environment.

No. of trees planted

Greening Activities at
Overseas Sites
Employees at Sumitomo Rubber’s production and sales bases worldwide areenthusiastically planting trees, with atarget of 70,000 by 2029.
In fiscal 2009, employees at the China
Changshu and Zhonshan Factories, theIndonesia Factory, the Malaysia Factory,
the Thailand Factory, and the Vietnam
Factory planted a total of 31,046 trees.
As an example, in December 2009, theIndonesia Factory held its CSR Fun Rally
2009 at which about 400 employees andtheir family members took part in cleaning
up a local beach and planting 1,000
mangrove trees along the shore. Overseas
sales bases in the U.S., Dubai, Chile,and Germany planted 180 trees.
Overseas Sumitomo Rubber sites willcontinue their greening activities infiscal 2010.

5,000
100

TOPICS
8 Bases in Japan Plant 100th
Anniversary Commemorative Trees
Between September and December
2009, six factories in Japan, theOkayama Test Course, and the Kobe
Head Office each planted a Kobushi
Magnolia tree to celebrate the 100th
anniversary of Sumitomo Rubber.
The Kobushi Magnolia tree has a
special meaning to Sumitomo Rubber.
During construction of the Shirakawa
Factory in 1974, trucks bringing construction materials to the site took a roundabout route so that an area of Kobushi
Magnolias that were growing wild at thattime would not have to be cut down.

Ceremonial tree-planting
at the Shirakawa Factory

Ceremonial tree-planting
at the Ichijima Factory

SUMITOMO RUBBER GROUP CSR Report 201014

E

G reenToward the Next Century

December 2009 marked the launch of the Eco-First Promotion Conference madeup of 23 companies certified for the Eco-First program. The goal is to help member
companies strengthen and expand their proprietary, cutting-edge environmental
protection activities, strengthen ties between government and industry, andpromote and spread the Eco-First system.
Since its launch, there have been lectures, symposiums, and information exchange
meetings, and in April 2010 an official Web site was launched. In 2010 there will beevents with a focus on biodiversity.

Eco-First Commitments

Under the Eco-First Program,leading companies step up theirenvironmental preservation efforts
by pledging to the Minister of theEnvironment to conduct measures
to curb global warming in order tohelp Japan meet its obligations
under the Kyoto Protocol.

Progress in Fiscal 2009 Efforts

March 2008 at all factories*, including domestic and• Inoverseas
affiliates, waste to landfill was less than 1% of total

Major domestic and overseas factories achieved•

1 Take Active Steps to Curb Global Warming
2

•
•
•
•

• Switch to natural gas.
• Install cogeneration systems, which make effective use ofwaste heat.
• Get all employees actively involved in saving energy.
Contribute to reducing CO2 emissions at employees’ homes byfollowing the Team Minus 6% measures and promoting the useof Eco-Life Notebooks.
Save energy at domestic sales bases and other non-production
bases.
As a designated cargo owner, work with affiliate SRI Logistics
Ltd. to reduce CO2 emissions from distribution to less than 92%
of fiscal 2006 levels in fiscal 2010.

Plant over 20,000 trees a year through activities that include
planting trees with local residents and providing as many
regions as possible with saplings.

industrial waste. We have set a target of reducing this to zero
emissions by the end of fiscal 2010.
Reduce, reuse, and recycle in order to reduce waste generated
so that in fiscal 2010 we can reduce waste generated per unit
by 20% over fiscal 2000.
Design lighter tires that use fewer resources. As well, improve
the anti-wear performance of tires for buses, trucks, and lighttrucks so that they last longer and require fewer resources, anddesign tires to last longer so that they can be reused.

* Excluding the Factories in Thailand and Vietnam.

60%

Reference Page

zero waste to landfill as of the endof March 2010

Waste generated per unit was down
against fiscal 2000

12%

As of March 2010, all of the Sumitomo RubberGroup’s major domestic and overseas factories
achieved zero waste to landfill. We are currently
working to achieve the waste generated per unit
targets for fiscal 2010. And we are implementing
our plans to design tires so that they use 15%
fewer resources than previous products.

19-20

reported to Eco-First authorities* Figures
Covered: CO emissions from energy consumption
2

Period: April 2009-March 201076%
206,664 trees

Total CO2 emissions from distribution
Against FY2006

3 Develop Eco-Friendly Products
17-18

Trees planted in Japan and overseas

The Sumitomo Rubber Group is on schedule for its
plans for reduction of CO2 emissions per unit andon target to achieve fiscal 2010 targets. We
achieved our target for CO2 emission reductions
from distribution ahead of schedule. We alsoachieved our targets for CO2 reductions at nonproduction bases and in employees’ homes, andfor our tree-planting activities.

LNG satellite at the Miyazaki Factory

15 SUMITOMO RUBBER GROUP CSR Report 2010

Reference Page

Reduce CO2 emissions per unit in manufacturing*
Against FY1990

The Eco-First Promotion Conference

Eco-First Commitment•

will carry out the following activities in order to reduce CO• We
emissions per unit in fiscal 2010 to less than 58% of fiscal 1990 levels.

Integrity

2 Create a Recycling-Oriented Society

The Sumitomo Rubber Group was certified for the Ministry of the Environment’s Eco-First program in March 2009.
Under this program, we have made and are carrying out three advanced commitments: take active steps to curb
global warming, creation of a recycling-oriented society, and develop eco-friendly products.

Progress in Fiscal 2009 Efforts

Kindness

Participation in Eco-First Promotion Group Expands
Government, Industry Ties

cologyEco-First Commitment

Next

TOPICS

Ecological process: Reduce environmental
burden from business activities

Standing by
Commitments as
an Eco-First Company

Ecology

Cogeneration plant at the Nagoya FactoryLow-floored vehicles
improve transportation efficiency

Eco-First Commitment
tires we release in Japan from 2009 onwards shall have met• Allin-housestandards for environmental performance. Our target

•
13-14

•

is therefore, by 2015, to have all tires we release in Japan forpassenger cars, buses, trucks, and light trucks have met
in-house standards for environmental performance.
We are conducting R&D aimed at developing 100% fossil
resource-free tires, which reduce environmental impact inboth raw materials and vehicle fuel. Our target is to release
them by 2013.
By 2015, we plan to bring to market tires with 50% lower rolling
resistance, which contribute to lower CO2 emissions.

Polyethylene recycling
equipment at the Changshu/Suzhou Factory, China

Progress in Fiscal 2009 Efforts
We are developing and promoting

Reference Page

fuel-efficient tires that will meet labelingrequirements stipulated in the industry

We are currently on schedule with our developmentof eco-tires that we will release between 2013
and 2015.

23-24

Used tire boiler systemat the Miyazaki Factory
SUMITOMO RUBBER GROUP CSR Report 201016

G reen

Ecology

Next

Kindness

Integrity

Toward the Next Century

Ecology

Ecological process:
Reduce environmental burden
from business activities

Kakogawa Factory Receives
Minister of the Environment
Award for Outstanding Measures
Against Global Warming

Take Active Steps to Curb Global Warming
Target Achieved for Total CO2Emissions in Manufacturing
In fiscal 2009, the six factories in Japanof the Sumitomo Rubber Group emitted
CO2 totaling 236,000 tons-CO2 (80% of
fiscal 1990 levels), thus achieving ourgoal of reductions against fiscal 1990
levels of at least 8%. Although a major
reason for this was that new rubber
production was only 79% of theprevious year’s level, other contributing
factors were the switchover to natural
gas at the Miyazaki Factory andenergy-saving measures such as theuse of boiler waste heat at factories andthe use of inverter systems.
CO2 emissions per unit were up 2%
over last year (63% of fiscal 1990
levels). We were able to keep this to aminimum thanks to measures that
included reducing fixed portion bycompletely shutting down reserve

A Word from Employees

TOPICS

boilers; this was despite the large
decrease in production volume.
With production volume recovering infiscal 2010, we are aiming to reduce
total CO 2 emissions by at least 14%
against fiscal 1990 by switching to natural
gas at the Ichijima Factory, further
preventing air leakage at factories, andsaving energy by improving the efficiencyof refrigerators.
Progress in Fuel Switchover (Switch to
Natural Gas)
In Japan

CO2 Emissions by Total and Per Unit
(For 6 Factories in Japan)(1,000 tons-CO2)

350
300

328
293 302

250

365

357

315 309

2.5

330

2.0

294
267
236

1.48

1.5

1.06 0.99 0.97
0.91 0.93

1.01990 2005 2006 2007 2008 2009

0
(FY)

200
0

to Guide to Calculating Greenhouse Gas Emissions, published*1 byAccording
the Japan Rubber Manufacturers Association (using for per unit).
2 Total emissions without consideration for cogeneration credits.
*

Izumiotsu Factory

September 1984

Nagoya Factory

October 2005

(kL)

Kakogawa Factory

September 2006

200,000

Shirakawa Factory

January 2008

Miyazaki Factory

December 2008

Ichijima Factory

January 2010

Amount of Energy Used and Per Unit

Takayuki Tanaka

Works Technical Section, Kakogawa Factory
Hybrid Business Headquarters, Sumitomo Rubber Industries, Ltd.

At the Kakogawa Factory, we dramatically improved the vulcanization process
to reduce the greenhouse gases we emit.
Vulcanization is one of the most importantfinishing processes in production andinvolves applying heat to molded rubber
to give it elasticity. The process requires
large amounts of steam. We thus strove
to reduce the amount of steam used byshortening vulcanization time: this wasdone through measures including reviewing vulcanization amounts, raising thetemperature of molded products prior tovulcanization, and improving equipment
efficiency by vulcanizing two sizes
simultaneously. This resulted in us achieving a more than 50% reduction in vulcanization time for certain product sizes, a(For 6 Factories in Japan)

Amount used converted to crude oil

150,000
100,000(coincided with startof factory operation)

Changshu/Suzhou Factory January 2007
(China)Indonesia Factory

Per unit (tons-CO2/ton)
3.0

Introduction of
Natural Gas

November 2006

Total emissions*2

374

Factory

Overseas Thailand Factory

Total*1

400

In December 2009, the Kakogawa
Factory received the 2009 Minister ofthe Environment Award for Outstanding Measures Against Global Warming(sponsored by the Ministry of theEnvironment). This award recognizes
that the factory reduced its CO2
emissions by half between fiscal 2006
and 2008, as well as took otherenvironmental protection measures
including reducing the amount oforganic solvents, industrial waste, andindustrial wastewater.
As well as being commended as
an exceptionally energy-efficient factory,
the Kakogawa Factory continuously
strives to improve energy efficiency onother companies through activities like
lectures and factory tours.

Awards Provide the Impetus to Manufacturewith Even Less Environmental Impact

March 2008

0.578 0.564 0.581 0.581

0.8
0.7
0.6
0.5

0

2006

2007

2008

2009

0
(FY)

A Word from Employees

Reducing CO2 Emissions by Converting
Refrigerators and Switching to Natural Gas
Yoshihiro Aoki

Maintenance Team, Engineering Section
Ichijima Factory, SRI Sports Ltd.

At the Ichijima Factory, approximately
10% of the steam used throughout thefacilities is used for steam refrigerators.
The boilers generating this steam
previously used A-type heavy oil, but
this made it difficult to reduce CO 2
emissions further.

Restructuring of Distribution Bases
Helps Achieve Target for CO2
Emissions from Transportation

A Word from Stakeholders

0.616

50,0002005

The Kakogawa Factory
receives 2009 Minister of the Environment Award
for Outstanding Measures Against Global Warming

Per unit (kL/t)

187,000
179,000
186,000
179,000
157,000

49% reduction in total CO2 emissions,and a 55% reduction in per unit emissions.
Our recent award makes me glad since
it shows our efforts have been recognized;
it also reinforced in our minds theimportance of environmental protection.
We will continue to strive to reduce theenvironmental impact of our production
activities.

So in March 2009, we switched fromsteam refrigerators to electric refrigerators to reduce the amount of steam
used. This allowed us to reduce CO 2
emissions from refrigerators by approximately 65% compared to fiscal 2008.
And in January 2010, we switched from
A-type heavy oil to LNG for boiler fuel,thus reducing CO2 emissions from boiler
fuel by approximately 20%.
Our next goal is to reduce electricity
consumption by making refrigerator
facilities more energy efficient.

To reduce CO2 emissions from transportation in fiscal 2009, Sumitomo Rubber
restructured distribution bases (warehouses and ports), used the nearest
port when exporting tires, conductedjoint distribution with other companies,
and used larger transport vehicles so as
to improve loading ratio.
Due to the resulting shorter transportdistances (as well as a slowdown in theeconomy), the volume of transport went
down, and total CO2 emissions from tiredeliveries was 34,793 tons-CO2. Thiswas far more than our reduction target
of 7% compared to fiscal 2006.
CO2 Emissions and Per Unit
(For 4 Factories in Japan)(tons-CO2)

Total CO2 emissions

Per unit (tons-CO2/ton)

60,0000.0464 0.0448 0.0452
0.0435 0.0431
46,33250,00044,460 43,554
46,332 44,460
43,5540.05

40,0000.03

34,793 36,880

30,0000.04

Helping Build an Optimal Distribution System
to Reduce Environmental Impact
Noboru Kaneda
President, Shoei

Our company transports goods for SRI
Logistics Ltd., one of the Sumitomo
Rubber Group companies. We load andunload cargo at factories and distribution centers, and we deliver some of the
products by truck. When loading andunloading cargo, we strive to save energy
by using electric vehicles and by using
only the lighting we need. As well, we
try to reduce environmental burden intransport by using dedicated vehicles
that make transportation and conducting
deliveries jointly with other companies toensure we do not make deliveries withempty space in delivery vehicles.
Our company does all it can to use
environmental impact reduction targets

given in Sumitomo Rubber Group’s Green
Distribution Guidelines. These guidelines
also include suggestions from ourcompany. We will continue to optimize
our distribution so that we can be avaluable partner to Sumitomo Rubber in
reducing environmental burden.

0.02

0

2006

2007

2008

2009

2010
target0(FY)

Note: Although total CO2 emissions increased in fiscal 2010 due to moreproducts being shipped, emissions per unit decreased.

17 SUMITOMO RUBBER GROUP CSR Report 2010

SUMITOMO RUBBER GROUP CSR Report 201018

Ecology

Green

Next

Kindness

Integrity

Toward the Next Century

Ecology

Ecological process:
Reduce environmental burden
from business activities

TOPICS

Contribute to the Creation of a
Recycling-Oriented Society
Major Domestic and Overseas
Factories Achieve Complete
Zero Emissions

and have made our Eco-First Commitment the means to achieve this. In fiscal
2009, the six factories in Japan generated 32,400 tons of waste, down 4,800
tons from the previous year. On a perunit basis, however, this fell short of ourtarget of a 12% reduction against fiscal
2000. The reason is that although production volume dropped by more than 20%,
waste generated fell by only 13%.
We expect to increase production in
fiscal 2010 but we keep the amount ofwaste to fiscal 2009 levels to achieve
our goals.

In October 2009, Sumitomo Rubber(Thailand) Co., Ltd. received the 3R
Promotion Council Chairman’s Award foroutstanding achievements in reducing,reusing, and recycling.
Since starting operations in November 2006, the company has beenthorough in managing its waste dump
areas, creating a unified system ofwaste separation in all processes, andmaking effective use of excellent
recycling contractors. In June 2009,
the company achieved complete zero
emissions. The company uses a fixed
portion of the proceeds from the saleof reusable waste to help the local
community in ways that include donating money to local community groups
and planting trees in nearby idle land.

(For 6 Factories in Japan)

Amount of waste generated

0.145 0.136

10,0000.117 0.119 0.115 0.127

0

2000

2005 2006 2007 2008 2009

Award ceremony

Note : Including tires collected from outside.

8,400

8,400

8,100

1,600

1,900

1,800

2005

Bringing in
used tires

Delivery ofretreaded tires

Supply ofretreaded tires

2006

2007

9,000

7,800

7,200

1,800

1,800

2008

2009

(FY)

Source : State of used tire recycling in 2009 (January-December),Japan Automobile Tyre Manufacturers Association

Number of Retread Tires Produced by
the Sumitomo Rubber Group(10,000 tires)

12.28

12.00

10.72
10.34

10.31

2007

2008

10.00

0

2006

2009

(FY)

How the Retread Tire Consignment
System Benefits Customers

Security
Tires are managed at every stage from new
to retread.

Inspection, processing,
manufacture
Collection ofused tires

9,600

Cost Effectiveness
Customers get economic benefits including
lower tire cost.

Resource Saving
Recycling tires contributes to protection of
the Earth’s natural resources.

Retread Tire Manufacturing Process (Remolding Method)A Word from Employees

Employee Cafeteria Leftovers
Used for Composting0

Dunlop Retread
Service Ltd.

Used tires(tire casings)

0.05

10,000 10,300 9,900

FALKEN

Sales branches, sales outlets(more than 560 in Japan)

customers

0.10

0
(FY)

DUNLOP

When tires are replaced

When automobiles are scrapped

5,000

Retread Tire Consignment System

Transport Company

Per unit (tons/ton)
0.25

38,00042,30040,0000.20
37,20037,00033,80032,400 0.15
30,00020,00010,000Under the retread tire consignment system, the tires (tire casings) used by customers are reprocessed into retread tires. This systemenables us to manage the tire life cycle from new product to retread, thus offering customers peace of mind and cost savings.

Waste Generated: In Total and Per Unit
(tons)
50,000Every year in Japan, approximately 100
million used tires weighing more than
one million tons are discarded. This
creates serious problems: the wide
variety of waste that must be treated astire performance becomes more advanced, an increasing environmental
impact from improper treatment and asqueeze on landfill capacity.
In 1972, the Sumitomo Rubber Groupestablished a subsidiary dedicated to
the recycling of used tires by using themto make new retread tires. Retread tires
require less than one-third of the natural
rubber and other resources needed tomake new tires. And since they last
longer, there ends up being fewer usedtires that need to be recycled. There isalso the beneficial effect of less CO2

Number of Used Tires Generated (Japan)(10,000 tires)

Retread tires by the remolding method

The Sumitomo Rubber Group is doing
all it can to recycle waste so that by theend of 2010 all production bases inJapan and overseas achieve complete
zero emissions, meaning 0% waste tolandfill. In fiscal 2009, the Vietnam
Factory achieved this in March and theThailand Factory in June. In 2010, Dunlop
Retread Service Ltd. and Nakata
Engineering Ltd. achieved complete zero
emissions in January, while Dunlop
Retread Service Hokkaido Ltd. and the
Malaysia Factory did so in March, giving
all major domestic and overseas factories complete zero emissions. These
efforts will continue with other factories.
To reduce waste generated, we set atarget of reducing fiscal 2010 per-unit
waste by 20% compared to fiscal 2000

Thailand Factory Receives
3R Promotion Council
Chairman’s Awardemitted during the production stage.
Retread tires have been in increasing
demand by transport companies overthe past several years to help themachieve environmentally friendly, costefficient management by saving resources and energy and reducing CO2
emissions. Retread tires are also stipulated in the Law on Green Purchasing.
The Sumitomo Rubber Group has two
retread tire factories, in the Japanese
prefectures of Hokkaido and Hyogo. We
are meeting customer needs with retread
tires offering the same level of performance as new tires, and which use a tread
compound giving superb fuel efficiency
and anti-wear performance. Whether usedtires are reborn as retreads or recycled inother ways depends on the state of thetire. The Sumitomo Rubber Group advises
customers on how to get long years of
economical use out of their tires.

Recycling Used Tires Throughthe Retread Tire BusinessIn the remolding method, the surface of the tread rubber of the tire casing is buffed, and unvulcanized rubber is applied and vulcanized.
Tread rubber is firmly attached over the entire surface to create a high-quality retread tire that looks and performs like new.

Separating garbage at the Vietnam Factory
Composting food waste

Nguyen Thi Anh Tuyet

Incoming Inspection

Buffing

Cementing

The tire casing is placed on
inspection equipment for astrict examination. Only thetires that pass theexamination are forwarded
to the next stage.

A machine buffs the tread
rubber down to a specified
shape and size.

Rubber cement is sprayedevenly over the buffedsurface to ensure that theretread rubber adhere easily.

Retreading

Vulcanization

Final Inspection

The molded tire is placed in
the press and subject toheat and pressure for a
fixed amount of time.

The retreaded tire undergoes
a thorough inspection of theinside and outside, with only
those tires passing all stagesof the process making it tomarket as retread tires.

Vietnam Factory

The Vietnam Factory achieved zero
emissions in October 2008 and complete
zero emissions in March 2009. But a
major obstacle to achieving complete
zero emissions was the food waste andother garbage in the employee cafeteria.
We solved this problem by compostingfood waste and using it as fertilizer for

19 SUMITOMO RUBBER GROUP CSR Report 2010

gardens on the site.
We are now working towards expanding this reuse and recycling of garbage
to the homes of all employees.

Retread rubber of a fixed
shape is attached to thebuffed surface. We use
jointless tread.

SUMITOMO RUBBER GROUP CSR Report 201020

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Ecology

Next

Kindness

Integrity

Toward the Next Century

Ecology

Ecological process:
Reduce environmental burden
from business activities

Progress Report on 2009 Voluntary Plan (For 6 Factories in Japan; waste reduction information domestic and some overseas factories)

We have revised our medium-to-long-term environmental targets and formulated a new Voluntary Plan with fiscal
2012 as the target year.

Boosting Environmental Management

Environmental Action Target

ISO 14001 Global Integrated
Certification

Factories Provide Environmental
Information and Education

The Sumitomo Rubber Group holds
Global Environmental Control Central
Committee once a year. For the meeting, environmental managers and ecoactivity leaders from around the world
gather to share what they are doing
to improve the group’s environmental
management.
At the fiscal 2009 meeting, held in
July at the head office, participantsconfirmed Sumitomo Rubber’s mediumterm targets for CO2 emission reductions as part of Japan’s medium-termtargets for COP15 (15th Conference of
the Parties to the UN Framework Convention on Climate Change (UNFCCC)) in
Copenhagen in December 2009.
Updates from Sumitomo Rubber bases
included the Izumiotsu Factory’s efforts
in waste reduction, energy savings, andtree and flower planting; the Thailand
Factory’s efforts towards complete zero
emissions; and the Vietnam Factory’s
activities in complete zero emissions andenergy savings. Affiliates Dunlop Retread
Service and Dunlop Golf Club Ltd.
reported on efforts to reduce waste andvolatile organic compounds (VOCs).
Starting in fiscal 2010, the Committee
will meet twice a year to promote global
sharing of useful information.

The Sumitomo Rubber Group is working
toward ISO 14001 global integrated
certification that will allow it to better
manage its worldwide activities andthus help realize a low-carbon society.
In July 2009, factories in Japan andaffiliates underwent integrated certification audits and 20 sites in Japan
completed integrated certification.
Another three affiliates in Japan werecertified in February 2010, bringing to
23 the total of bases in Japan completing integrated certification.
We plan to add seven overseas
factories to this list in September 2010,
which will give us 30 sites around theworld completing global integrated
certification. This will mean that we havea management system encompassing
all of our major production sites.

The Sumitomo Rubber Group holds
educational activities that deepen
employees’ understanding of environmental problems and raise their enthusiasm about taking part in environmental protection. Once a year, employees
at sites and relevant departments learn
about medium-term environmental plans
and the key measures they stipulate,along with various eco-action plans.
Internal environmental auditors takespecialized training once or twice a year.
In addition to an environmental learning page operative since fiscal 2009, theSumitomo Rubber intranet includes
environment- and energy-related newsletters from individual factories that
introduce the basics of saving energy. The
intranet also keeps employees abreastof the latest industry news including
environmental taxes and LED lighting.

ISO 14001 Certification Progress infiscal 2009, 2010
Base Name2009

SRI Business Associates Ltd.

2009SRI Systems Ltd.

2009SRI Sports Ltd.

2009

SRI Logistics Ltd.

2009SRI Engineering Ltd.

2009

Dunlop Retread Service Ltd.

2010

Dunlop Retread Service Hokkaido Ltd.

2010

Dunlop Golf Club Ltd.

2010

All employees

20,742Medium-to-Long-Term
Environmental Target (2010)Page

Due to a more than 20%
decrease in production volume
over the previous year,
improvement activities did notcover fixed portion and targets
were not achieved.

Reduce energy use, in
crude oil equivalent perunit, by more than 17%
over fiscal 2000.

By fiscal 2012, reduceenergy use, in crude oil
equivalent per unit, by atleast 20% against fiscal
2000.

17-18

Reduce CO2 emissions*1
by at least 14% over fiscal
1990.

By fiscal 2012, reduce
CO2 emissions*1 by atleast 20% against fiscal
1990.

17-18

Reduce by at least 19%(against fiscal 2006) CO2
emissions from distribution
activities at four tire
factories in Japan.

By fiscal 2012, reduce
total CO2 emissions by atleast 10% against fiscal
2006.

17-18

Reduce waste generated
per unit by at least 20%
over fiscal 2000.

By fiscal 2012, reduce
waste generated per unit
by at least 24% against
fiscal 2000.

19-20

Maintain complete zero
emissions*2 at factories inJapan and overseas, andat affiliates.

19-20

100%

Achieve complete zero
emissions*2 at factories inJapan and overseas, andat affiliates.

100%

Reduce total emissions*4of organic solvent by atleast 49% against fiscal
2000.

By fiscal 2012, reduce
web site
total emissions*4 oforganic solvent by at least (Japanese only)
59% against fiscal 2000.

88%

19.4% reduction

CO2 Reductions Reduce CO2 emissions*1 by Factors including a fuel switchoverin Production
at least 8% over fiscal 1990. at the Miyazaki Factory and alarge production decrease helped
us achieve targets.
Preventing
GlobalWarming
Reduce by at least 7%
24% reduction(against fiscal 2006) CO2
Shortening of transport distances
CO2 Reductions
emissions from distribution
and major reductions in transport
in Distribution
activities at four tire factories volume resulted in targets beingin Japan.
achieved.

100%

100%

12.1% reduction

Reductions in
Waste
Generated

Reductionsin Waste
Reductions in
Waste toLandfill

Due to a more than 20%
Reduce waste generated per decrease in production volume
unit by at least 20% over
over the previous year,
fiscal 2000.
improvement activities did notcover fixed portion and targets
were not achieved.

Maintain complete zero
emissions*2 at factories inJapan.
Prepare for achievement ofcomplete zero emissions*2
by fiscal 2010 at overseas
factories and affiliates.

90%

Maintain complete
zero emissions*2
at factories in Japan.

Maintain zero
emissions*3 andprepare forachievement ofcomplete zero
emissions*2 at overseas
56.1% reduction

Reductions in Emissions ofOrganic Solvents

Reduce total emissions*4 oforganic solvent by at least
42% against fiscal 2000.

Although targets were notachieved in the sports businesses,
reductions were significant, andthe tire and industrial products
businesses easily achieved targets;
this meant overall group targets
were achieved.

Per Unit
Crude oil equivalent per unit : Amount of city gas, electricity and other sources
converted to crude oil amount / new rubber consumption*5
Per unit : Amount of substance / new rubber consumption*5

Certified site
No. of employees
at certified sites

84.5%(17,517)21 SUMITOMO RUBBER GROUP CSR Report 20102010 Target

factories and at affiliates.

Employees at ISO 14001 certified sites
as percentage of all employees

Global Environmental Control Central Committee

Reduce energy use, in crude
oil equivalent per unit, by
more than 14% over fiscal
2000.

Certification Year

Thailand Factory (Tennis Ball)

Self
Assessment*6

2009 Achievement

3.4% reduction
Energy Saving

Strengthen Global Environmental
Management System

2009 Target

Environment- andenergy-related newslettersfrom individual factories

Self-Assessment Standards
To measure how well we have satisfied target
items for the Voluntary Plan, our Group has set
three levels of achievement: less than 70%, lessthan 100% and 100% or more.

100% or more achievement
At least 70% but
less than 100% achievement
Less than 70% achievement

to the Guide to Calculating Greenhouse Gas Emissions, published by the Japan Rubber Manufacturers Association.
*12 According
zero emissions : No waste goes to landfill and 100% is recycled. (We define that all the amount of waste to be treated for recycling purposes is the amount of waste to be recycled.)*3 Complete
emissions : Less than 1% of total waste generated goes to landfill and more than 99% is recycled. (We define that all the amount of waste to be treated for recycling purposes is the amount of* Zerowaste to be recycled.)
VOC voluntary restrictions from the Japan Rubber Manufacturers Association are used as the calculation method for organic solvent emissions.
*45 Therubber consumption : Amount of natural rubber and synthetic rubber consumed.
*6 New
Assessment calculation method : Use the baseline year (1- reduction ratio) to calculate as follows.
* Self(1- (target baseline year - achievement baseline year) / target baseline year) × 100%

SUMITOMO RUBBER GROUP CSR Report 201022

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Toward the Next Century

Next

Kindness

Integrity

A Word from Stakeholders

Next-generation product development

Product Development that Anticipates Needs

ext

Kei Takeoka

Automotive journalist

The only thing that most people know
about tires is that they’re round andblack. And unlike a car, you can’t test
drive a tire, so people have to base theirbuying decisions on subjective opinions
they hear through advertisements, sales
people, and magazine articles. That’s
why the tire labeling system that started
in January 2010 is so important. Not
only does the system give consumers
a convincing guide when buying, but it
is also a way for sales people to help

Accelerating the Development andSpread of Fuel-Efficient Tires
Complying with Tire
Labeling Regulations
The tire labeling system went into effect in January 2010. The Japan Automobile
Tyre Manufacturers Association (JATMA) stipulates voluntary industry standards
for the labeling of tires so that customers can choose fuel-efficient products
and that these tires can become more prevalent. The Sumitomo Rubber Groupbegan developing fuel-efficient tires long before this system began, and we now
have three series of ENASAVE tires that meet the labeling system’s standard for
fuel-efficient tires.
Tires with at least an “A” grade for rolling
resistance and a grade between “a” and“d” for wet grip performance can bear
the unified mark for fuel-efficient tires.

Rolling Resistance
Energy lost via the tire while driving; the lessenergy lost, the more fuel efficient the tire.

Wet Grip Performance
How well the tire grips the surface of
wet roads. Wet grip is crucial to safety.
Reducing the energy loss of a tire generally
reduces wet grip performance. To be fuelefficient, a tire must have both low rolling
resistance and superb wet grip performance.

Taking Fuel-Efficient Tires
Industry-Wide to Save 3%
on FuelAbout 20% of the energy generated
when a vehicle’s fuel is combusted isconsumed by rolling resistance of tires.
Calculating that a fuel-efficient tire that
reduces rolling resistance by 15%, we
can see that this saves 3% of a vehicle’s
total fuel consumption. This means thatgetting more fuel-efficient tires on theroad is crucial to the industry. While
exactly what constitutes a fuel-efficienttire used to vary from manufacturer tomanufacturer, there are now unified ways
to assess this thanks to the January2010 start of the tire labeling system.
Under this system, replacement
summer tires for passenger cars areevaluated for rolling resistance, a fuelefficiency indicator, and wet grip, asafety factor. Tires that achieve at leasta certain assessment level for these
two opposing factors can bear a unified
mark for fuel-efficient tires. This system
has made it possible for consumers toeasily compare the fuel efficiency oftires from different manufacturers.

Of course, fuel-efficient tires have to beavailable in a size that fits the customer’scar. That’s why I’m impressed with
Sumitomo Rubber for being so quick incoming out with such a wide tire lineup.
My hope is that Sumitomo Rubber
will make people smile by continuing toanticipate needs through the timely
release of products—fuel-efficient tires
that respond to real needs and thatallow consumers to make tire purchasing choices with minimal fuss.

customers get the tire that’s right for them.

EC202 Fits Range of Vehicles
Industry’s Largest Lineup

Unified Mark for Fuel-Efficient Tires

23 SUMITOMO RUBBER GROUP CSR Report 2010

Ecology

In November 2008, the Sumitomo RubberGroup established in-house standards
for environmentally friendly products,
then went on to release the ENASAVE
brand series, including the ENASAVE
97, which is 97% fossil resource-free,
and the ENASAVE RV503 fuel-efficienttire for minivans. But to get more ofthese fuel-efficient tires on the roadmeans adapting them to a wide range
of vehicle types. A Sumitomo Rubber
survey showed that about 70% of driversof sedans, sub-compacts, and compacts
want fuel-efficient tires.
We responded with the October 2009
release of the ENASAVE EC202, whichcomes in 64 sizes to meet the needs ofa wide range of users. And all sizes
meet the voluntary industry standards
for fuel-efficient tires. This meant thatabout 70% of the lineup for the Dunlop
brand of replacement summer tires
consisted of fuel-efficient tires, and it
constituted the industry’s biggest lineup
of fuel-efficient tires.
We will work to educate dealers andcustomers on the benefits of fuel-efficienttires so that we can get more recognition of these on the road.

A Word from Employees

The Challenge of Creating a Large Lineupof Fuel-Efficient Tires
Tomoyuki Mukai

Technical Dept.I, Sumitomo Rubber Industries, Ltd.

The biggest challenge in developing the
ENASAVE EC202 was achieving a rolling
resistance “A” grade and a wet grip “c”
grade for all 64 sizes in the lineup. The
performance levels of rolling resistanceand wet grip, which have a major effecton tire fuel efficiency, will vary dependingon the size of the tire—even when exactly
the same raw materials and construction
are used. That meant we had to spend
countless days testing the materials
and construction for every size of tireand doing trials with the products.
In December 2009, voluntary industry

standards were announced. To have alineup of products ready for the start of
the tire labeling system in January 2010,
we had to accelerate the pace of ourdevelopment. It was hectic, but wemanaged to have a tire lineup ready ashort time later, in February 2010. We
are proud of what we’ve accomplished.
Nothing makes me happier than seeing
cars on the road equipped with the tires
that I helped develop. My dream is todevelop extremely fuel-efficient tires witha “AAA” rolling resistance grade and an“a” wet grip grade.

SUMITOMO RUBBER GROUP CSR Report 201024

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Ecology

Kindness

Integrity

Toward the Next Century

Next-generation
product development

Tire Safety Project Promotes
Proper Use and Maintenanceof Tires

Customer Safety Comes First
Next-Generation Runflat Tires
Offer Safety and Environmental
Performance
Appropriate air pressure in tires is important for safe driving. Sumitomo Rubber
Industries Ltd. has developed andreleased runflat tires, which have a tiredeflation warning system that monitors
tire pressure and which allow the car tocontinue driving a certain distance evenon a flat tire. This technology makes
driving safer and also saves resourcesand energy since it eliminates the needto carry a spare tire.
The fourth generation of runflat tires
released in fiscal 2009 adopt four
thermal control technologies thateliminate unnecessary heat generated
by tires. They also are lighter and offer
ride comfort equivalent to or better thannormal tires. At the Tire Technology Expo

2010 in Cologne, Germany in March
2010, this fourth-generation runflat tire
technology was named Tire Technologyof the Year.
With its reputation for safety andresource and energy efficiency, runflat
tires are becoming standard equipment
on an increasing number of new cars.

History of Runflat Tires

1970

World’s first runflat tire released.

1995 First generation

Release of DSST (Dunlop SelfSupporting Technology) forinterchangeability with normal
tires.

2000 Second generation
10% lighter than the first
generation, with a 15% lower
vertical spring constant, an
indicator of ride comfort.

2003 Third generation

Every year in April and October, we holdthe Dunlop Tire Safety Project with thegoal of preventing tire-related accidents.
At highway rest stops and commercial
facilities in Japan’s 47 prefectures,
Dunlop checks tire air pressure andconducts visual inspections of tires forwear on grooves and damage to the tiresurface. It also distributes leaflets ongetting the most out of tires to stressthe importance of using tires properly
and maintaining air pressure.
In fiscal 2009, we conducted inspections on the tires of 5,164 cars at 96
locations around Japan, and in doing sofound that about 30% of cars inspected
had maintenance issues such as insufficient tire pressure.
Based on these results, we willcontinue to carry out the Dunlop Tire
Safety Project and widespread aware-ness campaigns, such as Internet ads,
posters at tire dealers, and leaflet
distribution, that educate drivers on theimportance of tire inspections.
Dunlop Tire Safety Project
No. of project locations

No. of cars inspected
4,000
3,000

3,683

1,000

47

47

2,000

49

20

708

0

0

2008/10

2009/04

2009/10

Leaflet on getting the most out of tires(3) Compound increases heat
conductivity(2) Aramid casing
Conventional rayon casing

Aramid casing

Conventional compound Increased conductivity

With the extremely stiff
Aramid casing, tire
deflection while driving witha flat tire is reduced, thus
reducing heat generated by
the sidewall reinforcement
layer.

Stiffness of casing
while driving withflat tire is 5 times
that of rayon

The heat conductivity of the sidewall reinforcement
layer and sidewall rubber allows for dissipation of
the heat that is concentrated at the damaged partof the reinforcement layer while running on a flat tire.

The Four Thermal Control Technologies
of Fourth-Generation Runflat Tires

A Word from Employees

Our Mission: Develop Safe Tires with Low
Environmental Impact(1) CTT profile
DSST Conventional sidewall reinforcement

Yasuo Mitarai

Advanced Technology Development Dept.,
Sumitomo Rubber Industries, Ltd.

Reinforcement layer

If a vehicle is equipped with runflat tires,the driver will not lose control of thesteering wheel in case of a sudden flattire, and there’s no need to stop andchange the tire at unsafe places suchas by the side of the highway. There’s
also no need to carry a spare tire, so
you also save resources and energy.
We believe it is our mission to develop
safe tires with minimal environmental
impact. Our project team members willcontinue to work together to develop
runflat tires that give customers safety
and comfort.

Dunlop Tire Safety Project

TOPICS2009 Fourth generation

Even greater ride comfort thannormal tires thanks to the adoptionof four thermal control technologies.

60
40

1,481

Compared to second generation,
3.5% lighter and a 7% lower
vertical spring constant.
A Sumitomo Rubber
representative (top) receives anaward plaque at the Tire
Technology Expo 2010 (right)

80(4) Dimple sidewall

Melody Road Awarded atCannes Lions International
Advertising Festival“Enjoy Safe Driving” is the tag line for
Melody Road, a stretch of the Shinshu
Venus Line Highway that is carved withgrooves that generate a melody whencars drive the recommended speed
limit of 40 km/h.
The judging panel lauded the safety
focus and original idea of this ad from
Sumitomo Rubber Industries Ltd.,
awarding it the Gold Lions in the
Outdoor category in the 56th Cannes
Lions International Advertising Festival.

CTT runflat tire

Reinforcement layer

A new tire construction based on proprietary
technologies gives superb runflat
performance, greater ride comfort, andlighter weight.

The dimples carved on surface of the sidewall
cause turbulent airflow, which results in better
heat radiation.

Evaluating runflat tires

25 SUMITOMO RUBBER GROUP CSR Report 2010

SUMITOMO RUBBER GROUP CSR Report 201026

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Next

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Integrity

Toward the Next Century

Next-generation
product development

TOPICS

Developing and Spreading the Use ofEnvironmentally Friendly, Safe Products
Utilizing Advanced
Technologies in R&D for
High-Performance Rubber
To make tires with superior environmental performance and safety, R&D must
focus on modifications at the molecularlevel. Behavioral analysis of rubber at themolecular level is measured in nanometers (billionths of a meter) and requires
the most advanced technology available.
Sumitomo Rubber Industries, Ltd. works
closely with universities and research
institutes conducting experiments andcomputer simulations. We observe thebehavior of rubber at the molecularlevel by using equipment such as theSPring-8 experimental large synchrotron
radiation facility. We also look for ways
to design rubber with increasingly higher
performance by using supercomputers
like the Earth Simulator*. We thus use
the most advanced technology available
to develop tires that are safe andenvironmentally friendly.
Simulator: A supercomputer of the Yokohama* EarthInstitute for Earth Sciences, Japan Agency for

Marine-Earth Science and Technology (JAMSTEC)
used for global warming and tectonic deformation
simulations.

Joint Development Utilizing Advanced
Technologies
Collaboration
Rubber molecule
Simulation of
behavior observation
behavior of
testrubber molecules

Earth Simulator
Courtesy of JAMSTEC

SPring-8(radiant light test)

Courtesy of Japan Synchrotron
Radiation Research Institute

Spreading Fuel-Efficient
Tires by Promoting theTire Labeling System
Sumitomo Rubber Industries, Ltd. believes
that it must do more than just develop
fuel-efficient tires: it also believes it is
responsible for getting more of thesetires on the road by educating consumers about them. So, along with the startof the tire labeling system in January
2010, we began promoting understanding and awareness of fuel-efficient tires
through television advertising andpamphlets distributed at tire dealers.

We are also aggressively promoting the
ENASAVE series of fuel-efficient tires throughtelevision commercials and other media.

SP Sport 2030 Standard
Equipment on the i-MiEVElectric Vehicle
Sumitomo Rubber Industries, Ltd. hasbegun supplying the SP Sport 2030 highperformance tire as standard equipmenton Mitsubishi Motors’ next-generationelectric vehicle (EV), the i-MiEV, which
went on the market on June 5, 2009.
Based on Mitsubishi Motors’ “i” minicar,
the i-MiEV is a next-generation EV withhigh-capacity lithium-ion battery andhigh-performance motor.
To give the SP Sport 2030 the highenvironmental performance demandedof the i-MiEV, Sumitomo Rubber used
the fuel-efficient tire technologies built up
through development of the ENASAVE
97 released in 2008. As a result, the SP
Sport 2030 offers not only improved
energy efficiency through lower rolling
resistance, but also thehigh levels of quiet rideand safety needed forelectric vehicles.

A Word from Employees

ENASAVE RV503 Tire
Wins Good Design Award

Improving Safety to Protect Our Children

For its balance of fuel-efficiency andwet grip performance, and its ability tooffer ride comfort and curb the unevenwear and wobbling typical of minivans,the ENASAVE RV503 received a Good
Design Award from the Japan Industrial
Design Promotion Organization. Startingwith the LE MANS LM703 in 2006, thisis the fourth year in a row a Dunlop brandtire has won a Good Design Award,
which recognizes not just good looks
but also overall quality. The award isalso proof of thereputation Dunlop
tires enjoy in theindustry for theirdesign technology.

Flooring Material Business Team,
Hybrid Business Headquarters, Sumitomo Rubber Industries, Ltd.

The Good DesignAward logo

Jun Fujisawa
Most accidents concerning children
outdoors result from falling off playgroundequipment. To lessen the injuries ofchildren who fall like this, we developed
the specially constructed Hibrid-Turf PG.
During the development process,we factored in head injury criteria(HIC) as a measure of safety. HIC is anindicator widely used in safety-conscious
Europe. An HIC value of lessthan 1,000 means that a
product can prevent serious
head injuries such as thosecausing brain contusions andskull fractures. We used HIC
calculations to improve theturf’s ability to absorb impact
and as a result were able
to construct a product thatoffered a high level of safety.

I believe that our efforts to quantitatively measure and raise levels of safety
was a major reason that we won a Kids
Design Award for the development of
the Hibrid Turf PG.
We will continue to make safety a pillarof our efforts to come out with productsthat protect children, the elderly, and thephysically challenged.

Hibrid-Turf PG

Eco-Products with
Reduced Materials
and Packaging
For a portion of the grommets (plastic
tubes inside the holes that the strings
pass through) of a tennis racket, SRI
Sports Ltd. uses a fossil resource-freefunctional material with low environmental
impact. The effect is a 32% reduction in
CO2 emissions over previous products.
The company is also using 28% lesspaper for the packaging of four longselling golf balls.

SP SPORT 2030

Hibrid-Turf PG Keeps
Children Safe
Long-pile artificial turf from Sumitomo
Rubber Industries, Ltd. offers the samelevel of safety and playability as natural
grass, and is widely used at professionalsoccer and baseball stadiums in Japan.
We have now used this technology
to develop Hibrid-Turf PG, a longpile artificial turf that cushions thefall of children at kindergartens, daycares, and parks. The long blades ofgrass and cushion layer combine to givesuperb impact absorption and comfort.

Installation in play areas can prevent
major injuries when children fall off
playground equipment or trip.
In fiscal 2009, Hibrid-Turf PG wasrecognized as an advanced productcapable of protecting children andhonored in the 3rd Kids Design Awards
sponsored by the Kids Design Association. These awards recognize designs
that contribute to safety for children
and peace of mind of theirguardians; that make lifeeasier for adults raisingchildren; and that are
innovative and creative.

Structure of Hibrid-Turf PG
Pamphlet explaining thetire labeling system

Long-Pile Artificial Turf
Golf balls using
Eco-Pack™ packaging
Tennis racket using
environmentallyfriendly materials
The i-MiEV, a next-generation electric vehicle from
Mitsubishi Motors

27 SUMITOMO RUBBER GROUP CSR Report 2010

Uses artificial turf with superb wear resistance and weather
resistance.

Sand
To ensure the artificial turf blends in well with the sandy
kindergarten yard, only sand is used as filler material.

Cushion layer
The long blades of grass and cushion layer combine to givesuperb impact absorption.

SUMITOMO RUBBER GROUP CSR Report 201028

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Integrity

Achieving a Work-Life Balance
Toward the Next Century

Kindness to employees

indness

Review ways
of work
WORK and create
LIFE
an employee
friendly company

Work-Life Balance forWays of Work Distinctive to
Sumitomo Rubber
Working efficiently gives us more free time, allowing us to meet more people and learn more new things, thus freeing ourheart and mind. As a result, we can work more enthusiastically and succeed in our career. In fiscal 2009, the focus of theSumitomo Rubber Group’s Love Your Work! project was “work-life balance.” To this end, we sought to achieve an ideal
work-life balance that gives employees a work-life style unique to Sumitomo Rubber.

Employees Search for Their
Ideal Work-Life Style
Sumitomo Rubber Industries, Ltd. is
expanding work-life balance measures
to support the life of employees outside
the workplace. In April 2009, a reserve
leave system for medical reasons was
expanded to include all matters of living
support. Employees can now take leave
for reasons such as child-care or elderly
care, or community volunteering, andcan take up to 40 days a year (from 20
previously) of reserve leave time. As well,under the system of leave for taking careof children, Sumitomo Rubber employees with children can now take leave until
their child enters third grade (previously
only until first grade).
But for these systems to work, employees must consider the meaning ofwork-life balance. That’s why in fiscal
2009 we encouraged employees tothink about this by asking them to find away of working and living that is uniqueto Sumitomo Rubber.

A Word from Employees

Raising Workplace Awareness Will Lead toMore Effective Use of Support Systems
Yukihisa Takayori

Human Resources & General Affairs Dept.
Sumitomo Rubber Industries, Ltd.

My work involves pursuing a work-lifebalance so that employees can enjoy
rewarding work and an enriched family
life. Sumitomo Rubber has systems to
support employees, no matter whatstage their lives and careers are at.
But for these systems to work properly,
employees must think seriously about
the meaning of work-life balance so thateveryone is equally aware of its importance.
That’s why I think it is so important for
employees to use the Love Your Work!

project to find a way of working thatfits the unique corporate culture of
Sumitomo Rubber.
As a project member, I dedicate every
day to seeing that this becomes a reality.

Informal seminars

Fiscal 2010(1) Informing employees about systems that
support their lives, and about the integration
various system.
(2) Held informal seminars led by in-house
instructors (head office district).
(3) Held a work-life balance contest.
(4) Collect and provide information on variety of
free-time activities.

Through discussions held under the Love Your
Work! project, employees are earnestly talking
about the work-life balance and how to achieve awork-style and lifestyle unique to Sumitomo
Rubber.

Finding Ways of Work Unique to
Sumitomo Rubber

Making Your Work-Life Stylea Reality

Informal Seminars Help
Employees Use their Free Time

Work-Life Balance Contest
Brings New Ideas

The head office in Kobe held informal
seminars that offered a casual atmosphere for discussing how employees
can find ways to use their free time andthus achieve the ideal work-life balance.
A questionnaire on self-enlightenmentand hobbies before the workshop revealed
that employees were interested in learning
things like how to read financial charts, raise
their knowledge of tires, and see how golf
clubs and golf balls are developed. Theseand other topics thus became the focus
of five seminars led by in-house instructors
and attracting a total of 112 participants.

The Sumitomo Rubber Group solicitedslogans and photographs from employees ina contest based on the theme “What I do
to achieve a work-life balance.” The slogan
contest attracted 4,982 entries, of which
51 were awarded. In another slogan
contest sponsored by the city of Kobe tocelebrate gender working equality month,

TOPICS
Sumitomo Rubber Certified for
Kurumin Logo for Efforts toFoster Future Generations
In October 2009, Sumitomo Rubber
Industries, Ltd. was certified as a“company that strives to help its employees raise their children” as statedin Japan’s Law for Measures to Support
the Development of the Next Generation. It can thus use the “Kurumin” logo,
which is proof of this certification.
The first ever for a tire company,
Sumitomo Rubber Industries, Ltd.
received this certification based on its
success in having 100% of female
employees who had children take childcare leave, and in getting more and moremale employees to take child-care leave.

The Kurumin logo
recognizes efforts tofoster future generations

29 SUMITOMO RUBBER GROUP CSR Report 2010

Fiscal 2009

two Sumitomo Rubber employees received
awards. In the photo contest, 440 entries
depicted employees up close and personalwith their families, enjoying their hobbies,
being with their families or working hard. The
top 11 photos were put on the group intranet
and displayed at the head office and factories.
In fiscal 2010, we will continue to promotedialog between management and employees
and across all departments so that we can findways to work unique to Sumitomo Rubber.

Slogan Contest Winners“Steer your work and family towards a brighter future!” Tatsuhiko Shinshima Miyazaki Factory

Sumitomo Rubber employees chosen in the Kobe City-sponsored gender working
equality month slogan contest“Balance your work and life-for today and tomorrow.” Kenji Kii SRI Sports Ltd.
“Has your work become your life? Isn’t it time for a change?” Nobuhiko Sakurai SRI Sports Ltd.

A Word from Employees

I Appreciate the Company’s Respect for
Our Life Outside Work
Shoko Atsuta

Izumo Office, Dunlop Tyres Chugoku

Last year, my mother fell ill back in myhometown and had to go into the hospital.
To my sons, their grandparents mean
everything. I took a picture of our family in
my hometown, and I was ecstatic when
this photo was chosen in the Sumitomo
Rubber work-life balance photo contest.
It’s heartening to know that Sumitomo
Rubber truly cares about the home lifeof each of its employees. There aremany female employees with a wealthof knowledge and ability. If more ofthese employees get out and talk about
the importance of balancing work andfamily life, our work environment willcontinue to improve.

One of the winning entries in the work-life balancephoto contest

SUMITOMO RUBBER GROUP CSR Report 201030

G reen

Kindness

Ecology

Next

Kindness

Integrity

Toward the Next Century

Zero Danger and Zero Labor Accidents

Kindness to employees

Helping Employees Develop their Abilities
Focus on Developing theAbilities of Managers and
New Employees
The Sumitomo Rubber Group strives todevelop employee abilities through training
for employees at each tier, programs toenhance self-development, and on-thejob training (OJT). In fiscal 2009, we held
OJT Leader Training for managers incharge of new employees in planning andtechnology positions. The aim was toteach these managers how to think andact when leading these young people.
Starting in fiscal 2010, we are holding
two kinds of training: problem detection/
solving and management skills. In
problem detection/solving, management
candidates undergo business basics
training where they acquire the basics
needed for decision-making. The management skills training for managers wasadapted for management candidates,
and OJT Leader Training was also
expanded to include participation by
young employees. These training
programs will give managers the ability
to lead and foster younger employees
working under them, as well as help
young employees strengthen ties with,and lead, the new employees.
We are also in the process of making
proposals for employee training programs
worldwide.

Unified Worldwide
Manufacturing Education
The Sumitomo Rubber Group opened the
Manufacturing Training Center in January
2007 to enable consistent, unified training
in manufacturing at production basesaround the world. To equip employeeswith the skills they actually need on thejob, the center holds training covering
areas such as Sumitomo Rubber’s
technologies and philosophy on manufacturing, and how to better expand internationally. The goal is to build a unified worldwide manufacturing system by training
factory managers and employees in Japan

The practical training area of the Shirakawa
Training Centerand factory managers and management
members from bases in other countries.
In April 2009, the Shirakawa Training
Center opened. The center hosts a wide
range of training aimed at standardizing
manufacturing technology, including skills
training for managers and senior staff, andoverseas support staff in Sumitomo
Rubber’s manufacturing divisions. For a true
hands-on experience, training is conductedusing actual production equipment.
In fiscal 2009, a total of 599 employees
took various training courses. In fiscal
2010, we intend to increase this number
to at least 650.

TOPICSTechnical Olympics
To celebrate our 100th anniversary, theShirakawa Training Center held the SRI
Technical Olympics to boost enthusiasm
among young employees and maintainthe tradition of skills at Sumitomo Rubber
in fiscal 2009. The competition pits
factories against each other in events
related to different areas of tire production. At the first Technical Olympics inNovember 2009, five employees up to age
33, each who had won regional competitions and who represented five factories inJapan and overseas, took part in events
related to small tire building. The participants
were judged on their own level of skills,
and their workplaces were judged on how
well they pass on skills to employees.
The next Technical Olympics willtake place in the spring of 2010 andwill cover machine maintenance.

Awards ceremony

31 SUMITOMO RUBBER GROUP CSR Report 2010

Zero Labor Accidents throughRisk-Averting, Preventative
Safety Activities
The Sumitomo Rubber Group constantly
strives for occupational health and safety by
maintaining a healthy and comfortable work
environment. Since most labor accidents
are the result of unsafe practices, in fiscal
2009 we aimed for zero labor accidents byeliminating all danger in the workplace. This
involved safety activities that seek out
and eliminate risk, thus eliminating thepotential cause of accidents.
Areas of emphasis include thorough risk
assessment at the design and delivery
stages, as well as changes to what we call“4Ms” (man, machine, material, and method) at domestic facilities. These efforts
resulted in a total of just 50 work accidents across the group in fiscal 2009, a
reduction of four compared to fiscal 2008.
We will continue to build on our traditionof putting occupational health and safety
first in all that we do. Our goal is to foster
safety-minded employees who can help
us reduce labor accidents to zero bybuilding a workplace with zero danger.

mented by safety simulation training.
In fiscal 2009, part of the Shirakawa
Training Center’s safety audits had division
managers gather to observe certain work
processes for a fixed amount of time todiscover whether work was proceedingaccording to required safety standards,
and if not to come up with improvements.
Since it is always good to have several
people assess a process, this activity
proved extremely effective in discovering previously unknown problems.
In safety training, we held safety sensitivity education that made participants moresensitive to potential problems by taking
part in simulations of danger based on
actual workplace situations. We set up
danger simulators in six factories in Japanand four overseas, with 9,768 employees
taking training in these in fiscal 2009. We
also contributed to safety activities in theregions of our bases. For example, we
made our facilities and instructors available
through free training for employees of local

Occurrence of Occupational Accidents(Ratio of occupational accidents
requiring medical leave*)
2.0

1.95

1.90

All industries
Manufacturing industry
Sumitomo Rubber Industries, Ltd.

1.83

1.75

1.62

1.02

1.09

1.12

0.99

0.32

0.33

0.24

0.17

2006

2007

2008

2009

1.5
1.0
0.5

1.10
1.01

Managers observe work processes at the
Shirakawa Factorycompanies; and we conducted a danger
sensitivity training program at the requestof the Minister of Health, Labour andWelfare in order to train safety leaders.

Keeping Employees Mentallyand Physically Fit
The Sumitomo Rubber Group strives tokeep employees mentally fit by holding
mental health seminars and providing
special guidance on lifestyle diseases
for all job descriptions and management levels. At the head office, we holdregular meetings for employees on thedangers of cigarettes to help people
stop smoking.
To fight the problem of overwork, we
cooperate with the labor union toensure working hours are at a manageable level. We also strictly enforce our“no overtime” days, and this has helped
us reduce excessive overtime.
As part of efforts in fiscal 2009 tocreate a safe and stress-free work
environment, we eliminated the heatand dust problems of the rubber mixing
and curing sections. We also reduced
the amount of organic solvents andbegan using electric vehicles for on-sitetransport, thus reducing exhaust fumes
and improving the work environment.

0

2005

(FY)

accident ratio: Number of persons killed or injured by* Occupational
occupational accidents per cumulative million service hours.

Occupational accident ratio = Number of persons killed or injured byoccupational accidents/Cumulative actual service hours × 1,000,000

On-Site Safety Audits andEducation
The Sumitomo Rubber Group strives toraise the occupational health and safety
standards of factories and achieve zeroaccidents by conducting safety auditsthat discover and eliminate unsafe work
practices. Such on-site patrols are comple-

Mental health workshop
Safety education at the Miyazaki Factory

A meeting to explain the Stop-Smoking Project
Safety education at the Changshu Factory in China

SUMITOMO RUBBER GROUP CSR Report 201032

G reenI

Ecology

Next

Kindness

Integrity

Toward the Next Century

Integrity for stakeholders

Dialog with Outside Experts

ntegrity

Consumer Affairs Expert Gives
the Purchaser’s Point of View

For Customers
Shooting for Improved Satisfaction

Training at our tire dealers

On December 28, 2009, Yukiko Furuya, Executive Director of the Nippon
Association of Consumer Specialists (NACS), spoke to the Sumitomo RubberGroup on our CSR activities from the point of view of the consumer.

In the Sumitomo Rubber Group, we believe it is our mission to provide products that make customers satisfied and happy.
Besides listening closely to what customers are saying, we are constantly striving to raise our level of customer service.

Customer Feedback Improves
Our Products and Services
Each business group of the Sumitomo
Rubber Group has a Customer Relations
Office devoted to taking opinions andrequests from customers. These opinions
and requests are relayed to the appropriate divisions so that we can improve
our products and services.
In fiscal 2009 at the Customer
Relations Office in our tire business,there was an increasing number ofinquiries on fuel-efficient tires and thetire labeling system. We responded
by adding a page to our Web site
introducing environmentally friendly

products and explaining the tire labelingsystem in layman’s language, and webegan providing more information on
fuel-efficient tires.
We will continue to add information to
our Web site in response to frequently
asked questions.

Product and Safety Education
Improves Service at Tire Dealers
We have a number of education andtraining programs to improve service at
our tire dealers. Besides education to
boost product knowledge, we also teachemployees how to give customers theknowledge needed to use their tires safely.

TOPICS
Customer Service Skill
ContestThe Dunlop Tyres Sales Headquarters
holds a customer service skill contest
every year at its company stores.
In fiscal 2009, the theme of thecontest was studless tires at stores insnow areas, and summer tires at storesin warmer areas. Participants were
graded on how they served customers
from initial greeting to seeing them
drive off with their new tires. Winners
were chosen after judges marked themon criteria like the use of easy-tounderstand layman’s language andresponse appropriately to customer
questions.

CSR Report from a Consumer’sStandpoint
After reading the Sumitomo Rubber Group’s CSR Report,
I got the impression that all employees are working
together to protect the environment and contribute tosociety based on the group’s CSR Activities’ Fundamental Philosophy. I was particularly impressed with thesolid, conscientious information provided: not only was
there a wealth of data, but also explanations of why thegroup failed to achieve certain objectives.
The next step for Sumitomo Rubber is to disclose
information with more of a concern for the interests ofthe stakeholders. Simply disclosing large amounts ofdata runs the risk of numbers for numbers’ sake andYukiko Furuya
Executive Director
Nippon Association ofConsumer Specialists

misunderstanding on the part of readers, as it becomes
hard to determine whether the figures indicate something good or bad. To give an example of the Customer
Relations Office, by giving not just the number ofinquiries but also what they were about and how they
were dealt with will give stakeholders a better idea ofwhat Sumitomo Rubber is all about.
It is also important to write in layman’s language sothat there is no misunderstanding among consumers.
For example, the ordinary person probably does notunderstand what “rolling resistance” means. The report
should go beyond technical explanations and talk about
the benefits to consumers: this will make it easier tounderstand.

Requests for Information Disclosure
The Sumitomo Rubber Group must understand theconcerns and issues of consumers and society ingeneral, and put its effort into addressing these.
Tires are not an easy product for the average consumer
to understand. Environmentally friendly products will beof no use unless consumers understand and actuallypurchase them. While quality and safety are naturallypart of a company’s responsibility, it is also an importantpart of CSR to educate and enlighten consumers on
matters such as tire safety and environmental impact.

A Word from Employees

Trying to Answer Questions Thoroughly andPromptly Everyday

Sumitomo Rubber’s Response

Shinji Takahashi• This year, we have not only disclosed the number of inquiries from customers but also how we dealt with them.

Technical Service Department, Dunlop Tyres Sales Headquarters
Sumitomo Rubber Industries, Ltd.

Many of the inquiries to the Customer
Relations Office concern tire weight andhow to find a tire right for the wheels
and body of one’s car. But matching car
bodies and wheels is too complex tosimply describe in an article on the Web
site. Instead, we do our best to givedetailed yet easy-to-understand answers
to each customer who calls. To ensure

33 SUMITOMO RUBBER GROUP CSR Report 2010that we do not take too long answering
customer questions, we have an easily
searchable database of answers that weare continuously updating.
We are also in the process of expanding our frequently asked questions pageon the Web site to include the mostcommon inquiries from customers.

(See page 33)• To make the report understandable to the average consumer, we have used layman’s language in place of technical jargon
whenever possible.

• As a direct means of communication with consumers that allows us to take up their issues, we currently conduct free tire
inspections in public places twice a year and host factory tours, both of which allow us to gather opinions. We are looking
into ways to more actively engage consumers in dialog.

• To help greater numbers of consumers better understand fuel-efficient tires, we run advertisements and distribute leafletson the tire labeling system and fuel-efficient tires at dealers. (See page 27)

SUMITOMO RUBBER GROUP CSR Report 201034

G reenIntegrity
Toward the Next Century

For Suppliers
Fair and Appropriate Procurement
A trustful relationship with suppliers isessential for producing better products.
To ensure fair and open business
operations, the Sumitomo Rubber Grouphas prepared and implements theProcurement Guidelines to establish
solid partnerships with our suppliers.
The Group’s centralized purchasing
covers all procurement operations tointegrate suppliers, procurement volumes,
and goods, except those handled by
SRI Sports Ltd. and SRI Engineering Ltd.,for which the lines of business arecompletely different from those of theCompany. The standardization of parts forcommon use is also promoted by taking
advantage of the centralized purchasing.
We also do everything we can to incorporate our suppliers’ value analysis (VA)
proposals and value engineering (VE)
proposals starting in the design stage.
We are also revising our Procurement
Guidelines, which detail every step of the

TOPICS
Formulating the CSR
Procurement Guidelines
The Sumitomo Rubber Group procures
supplies based on criteria like quality,
prices, and delivery, but also based on
the suppliers’ compliance, human rights,
and labour practices. Fiscal 2009 marked
the launch of the Working Group, madeup of employees from the Purchasing
Department and CSR Promotion Officeof Sumitomo Rubber Industries, Ltd.
The Working Group is formulating
guidelines that enlighten suppliers on CSR
activities in efforts to spread CSR procurement across the entire supply chain.

purchasing process, including policy andpurchasing criteria, so that these guidelines are in line with future revisions to laws
and changes in external environments.

Assisting Suppliers in Technicaland Contract-Related Matters
Our technical division handles inquiries
from suppliers and consults with themon technical and engineering features,
whereas the Purchasing Department
resolves contract-related matters.
Whenever we publish and make majorrevisions to the Procurement Guidelines,
we explain them to suppliers. We also
explain the Sumitomo Rubber Group’s
basic purchasing policies at the same time.

Assessing Risk throughSurveys of Supplier Factories
Since fiscal 2004 the Sumitomo RubberGroup has been visiting supplier factories
to conduct crisis management surveys.
In these surveys, emergency situations
are assumed from the viewpoint of risk
management, as representatives from theTire Quality Assurance Department, Engineering Department, and Purchasing Department of Sumitomo Rubber Industries,
Ltd. visit supplier factories to assess thestate of fire-fighting measures, equipments
inventory, and facilities’ aging. Supplierthat do not pass these inspections areprovided with guidance for improvement.
In fiscal 2009, we conducted surveys
at the factories of 16 suppliers.

Educating Relevant Units to
Ensure Compliance with the
Subcontracting Law
To ensure compliance with the Subcontracting Law throughout the entire group,
the Legal Department and Purchasing
Department of Sumitomo Rubber Industries, Ltd. join together in inspecting therelevant departments. In fiscal 2009, we
conducted inspections at the purchasing
sections of our one domestic tire factory.
The Group will continue to conduct
appropriate and fair transactions in
combination with the inspections at therelevant departments and sections, aswell as training for the purchasing staff.

Steadily Returning Gains toShareholders Over the Long Term
Sumitomo Rubber Industries, Ltd. places thehighest priority on returning gains toshareholders. Our basic policy is to steadily
return gains to shareholders over thelong term by comprehensively assessing dividend payout ratio, performanceprospects, and level of retained earnings on
a consolidated basis. Retained earnings are
directed to capital investments and advanceinvestments such as R&D; this strengthens the foundation for future earnings.
R&D expenses in fiscal 2009 were 17.982
billion yen, or 3.4% of consolidated net
sales. Dividends were 18 yen per share.

Policy for IR Activities
Accurate, Quick, and Fair
Release of Information
Sumitomo Rubber Industries, Ltd. places
the highest priority on investor relations
with shareholders and investors in Japanand the rest of the world. We do all we
can to quickly and accurately release
information on company management
and business activities based on ourconsolidated financial results.
Besides releasing information obligatory under Japan’s Financial Instruments
and Exchange Law, and information
requested by the stock exchange, weconstantly aim to achieve accurate, quick,and fair release of information such as
management policies and financial data forthe sake of our shareholders and investors.
But shareholders and investors are not
our only stakeholders; we believe thatmanaging our company requires that thegeneral public be informed of our activities. To this end, we use our Web site andother media to post information on ourmanagement and business activities.

Providing Information throughRegular IR Meetings and theWeb Site
Sumitomo Rubber Industries, Ltd. uses
every opportunity possible to let the
public know about the company
management and business activities: at
the General Meetings of Shareholders,and at quarterly IR meetings explaining
our financial results for analysts andinstitutional investors. We also hostsmaller meetings and interviews foranalysts and institutional investors.
Our IR Web site gives schedules forupcoming events like General Meetingsof Shareholders and IR meetings for
institutional investors. Users of this site
can also download documents such as
invitations to General Meetings of Shareholders, information for shareholders,financial results summaries, IR meeting
documents, securities reports, andannual reports (English and Japanese).
Because of the merger between SRIHybrid Ltd. and Sumitomo Rubber
Industries, Ltd., in fiscal 2010 we updated
a portion of our corporate Web site. To
help shareholders and investors navigate

Financial results meeting

Annual Report

35 SUMITOMO RUBBER GROUP CSR Report 2010

Next

Kindness

Integrity

For Shareholders and Investors
Fruitful Dialog that Respects the Other Party

Integrity for stakeholders

Building a Solid Partnershipwith Suppliers

Ecologyeasily, we have placed brand logos on
our site, as we had done previously with
our tire products, so that clicking onthese logos takes the user directly tothese product pages.

IR Web site

Helping More Shareholders
Exercise Their Voting Rights
Since the General Meeting of Shareholders
in March 2007, it has been easier forindividual shareholders to invest in
Sumitomo Rubber and to exercise theirvoting rights. This is because Sumitomo
Rubber Industries, Ltd. reduced the numberof shares that constitute one unit to 100.
This gave more shareholders voting rights.
At the General Meeting of Shareholders
held in March 2007, we made it possible
for a greater number of shareholders to
exercise their voting rights by allowing themto do it online using a PC or mobile phone.
The General Meeting of Shareholders
held on March 30, 2010 had an attendance of 165. And 301 shareholders (2more than last year), or 1.7% of all thosewith voting rights, used the Internet to
exercise their voting rights.
Furthermore, we strive to speed up
the sending of the Convocation of theGeneral Meeting of Shareholders andpost the English translation on our Web
site to make it easier for shareholders to
exercise voting rights.
Thanks to efforts like these, about
80% of our shareholders exercise theirvoting rights, an extremely high number.

SUMITOMO RUBBER GROUP CSR Report 201036

G reenIntegrity

Ecology

Next

Kindness

Integrity

Toward the Next Century

Integrity for stakeholders

in the Kobe district took part under thename “Team Infinity” with the slogan“Let’s energize Kobe together!”
We will step up our cooperation with
NGOs and NPOs in fiscal 2010 in orderto make the best use of the CSR fund.

For Local Communities
A Good Corporate Citizen
Basic Philosophy for Our
Social Contribution Activities
Sumitomo Rubber Group bases all
across Japan have been conducting
GENKI social contribution activities forthe past 20 years. Other unified crossgroup activities include planting trees,
volunteering in the community, andholding local exchanges with NPOs.
In September 2009, we revised ourCompany’s Code of Conduct by providing even more details of our social
contribution philosophy of “bringing
company and community together.”

TOPICS
Encouragement Award in
Corporate-NPO Joint
Encouragement ProjectIn December 2009, the Sumitomo
Rubber Group and the Kobe Empowerment Center, a specified nonprofit
organization, jointly received the Encouragement Award in the Corporate-NPO
Joint Encouragement Project This award
spotlights groundbreaking examples ofcompanies and NPOs working together
to solve social problems and energize
communities.
This year’s award recognizes the dialog
and cooperation between the two parties
since fiscal 2008 in areas such as theprovision of volunteer information andthe establishment of a CSR fund.

Dunlop Manufacturing School
Helps Educate Children

Bringing Company and Community Together (Group’s Code of Conduct)
The Sumitomo Rubber Group does all it can to contribute to local
communities and society as a whole, and to protect the environment.

on its CSR Activities’ Fundamental Philosophy, the Sumitomo Rubber Group strives• Basedto contribute to the achievement of a sustainable world and earn the trust of society.
directors and employees should strive for social contribution activities in• Company
close cooperation with citizens so that the Sumitomo Rubber Group will always be
welcome in and trusted by local communities.

Sumitomo Rubber Group should do its utmost to ensure that it abides by environ• The
mentally related laws and that its business activities and products and services exert
minimal impact on the environment.

Employees Contribute to
CSR FundIn July 2009, Sumitomo Rubber Industries, Ltd. established a CSR fund tosupport a variety of causes including
the solution of environmental and social
problems. Employees who agree totake part in the fund have ¥200
deducted from their salary each month,with the company matching thisamount and total going towards the
CSR fund. As of March 1, 2010, 1,143
employees were taking part, about 20%of all employees. As of the end of March
2010, the fund had accumulated about
3 million yen.
In fiscal 2010, we worked with ourintermediary NPO, the Kobe Empowerment Center, to select NPOs we could
support using the CSR fund. A steeringcommittee made up of representatives
from relevant company units chose theNPOs and we are now devising asystem for distributing the aid.

NPOs that allow us to deepen exchanges
and further dialog and cooperation.
Since fiscal 2008 in Kobe, home to
Sumitomo Rubber’s head office, wehave been working with the Kobe
Empowerment Center, a specified
nonprofit organization and our intermediary NPO. In fiscal 2009, we began
exchanging information with the Osaka
Voluntary Action Center on things likehow best to distribute money from our
CSR fund. The center also helps our
employees find volunteer work.
Each Sumitomo Rubber site also has
NPOs it cooperates with. In fiscal 2009,
we took part in Kobe Alive 2009, a
dance festival sponsored by the specified nonprofit organization Sasso Japanand supported by the governments of
Hyogo Prefecture and Kobe City. Young
employees of Sumitomo Rubber living

Cooperation and Dialog with
Local NGOs and NPOs

Awarding the certificate of commendation

37 SUMITOMO RUBBER GROUP CSR Report 2010

The Sumitomo Rubber Group strives tobuild good relations with communities
through joint events with NGOs andSumitomo Rubber’s Team Infinity takes part in
Kobe Alive 2009

In fiscal 2009, Sumitomo Rubber
Industries, Ltd. began holding the
Dunlop Manufacturing School in cooperation with the specified nonprofit
organization Core-Net. The aim is to getchildren, tomorrow’s industry leaders,interested in the art of manufacturing.
In this course, sixth-grade elementary
school students are given scale models
to assemble so that they can practiceusing simple tools while learning thedifficulties, satisfaction, and joy thatcome when you build your own toys.
In fiscal 2009, 228 children from threeelementary schools took part in the
program, with a questionnaire revealingthat 98% had fun in this experience.
Plans call for the Dunlop Manufacturing School to be held at five schools infiscal 2010.

The Dunlop Manufacturing School

car drivers in gymkhana*1 competitions
and learn the art of safe driving from
instructors including our own gymkhana
driver, Tsutomu Nakajima.
We also continue to support wheelchair tennis tournaments held in Aichi
Prefecture and Hyogo Prefecture. Since
fiscal 2009, we widened our participation in the Dunlop Kobe Open International Wheelchair Tennis Tournament asa special sponsor whose name is usedin the title of the tournament.
We will continue this support in efforts
to create a society where everyone,
regardless of physical limitations, can live
and participate in harmony.
One at a time, cars drive through a*1 Gymkhana:course laid out on a paved surface to compete

safety, and showing these pictures
makes the general public conscious of
the value of safe driving.
In Sumitomo Rubber’s CSR Awards(see page 9), the Security Team of the
Miyazaki Factory was a winner in theworking floor group of the social contribution category. This award is in honorof employees who for the past 20 years
have been traffic safety patrollers
guiding children on their way to school
past the entrance to the factory, wheretraffic is particularly heavy. The Kakogawa
Factory has an autumn traffic safety
campaign, at which time employees
guide children going to school acrossthe street corners around the factory.

for the fastest time.

Raising Awareness of Golf
as the Ideal Sport for Health
SRI Sports Ltd. strives to raise awareness of golf as a sport that helps golfers
ward off lifestyle diseases while enjoying
a pleasant walk outside. To this end, thecompany’s efforts include renting
pedometers to spectators to encouragethem to count their steps, and holding
walking golf tournaments where participants wear pedometers. The successof events like these has encouraged
other golf organizations to follow suit.
And to attract even more people tothe healthy game of golf, we havestarted activities like beginner lessons
for women and scramble golf* 2 fornovice golfers.

Drawing contest for children sponsored by the
Changshu/Suzhou Factory

Guiding children on the way to school near the
Miyazaki Factory

golf: Each person in a four-member*2 Scramble
team tees off. The best shot is selected and all
four members play their second shot from thatpoint. The same goes for all shots after that.

Contributing to a Society for
Everybody Through Support
for the Physically Challenged

Sites Hold Regular Traffic
Safety Campaigns

Since fiscal 2008, the Sumitomo RubberGroup has supported the Safety Driving
Festa Planning Committee. With the aimof giving the physically challenged opportunities to interact with the rest of society,the committee held eight Safety Driving
Festas and other events around Japan
in fiscal 2009. At a Safety Driving Festa,
participants ride with professional race

In June 2009, the Changshu/Suzhou
Factory in China cooperated with traffic
police in Pudong, Shanghai in holding
the Dunlop 2009 Traffic Safety Campaign.
Started in 2008, this year’s event
featured a traffic safety art contest inwhich children sent in their depictions oftraffic safety. Having children draw
pictures makes them more aware of

SUMITOMO RUBBER GROUP CSR Report 201038

G reen

Ecology

Next

Kindness

Integrity

Site Reports(Domestic Factories)

Integrity
Toward the Next Century

Integrity for stakeholders

Shirakawa Factory

Corporate Governance
Sumitomo Rubber Group
Company’s Code of Conduct
RevisedIn 2009, six year’s after it was formulated, the Sumitomo Rubber Group’s
Code of Conduct was revised.
The revisions were made to keep up
with the many changes inside and outside
the company, such as the rise of overseas
business. The updated version of theGroup’s Code of Conduct makes employees aware of new laws and revisions tolaws, stressing the importance of compliance with laws that did not exist when weformulated the first version, such as
Japan’s Personal Information Protection
Law and the Whistle-Blower Protection Act.
The revised version comes in a booklet
form that uses layman’s language andillustrations for easy understanding. After
distributing this booklet to all group employees, we held explanation meetings to ensure
thorough understanding by everyone.
We will continue efforts to make theGroup’s Code of Conduct a familiar partof the Sumitomo Rubber Group.

Compliance Counseling
Offices Both Inside andOutside the Company
The Sumitomo Rubber Group opened
the Compliance Counseling Room in
February 2003 to detect major areas ofrisk and thus prevent problems arisingfrom business activities. We have encouraged the use of this service through our
newsletter, intranet, and a pocket-size
book. We get about one inquiry orreport to the room each month. We also
ensure that people contacting theroom with complaints and consultation
matters are not penalized in any way.
In fiscal 2009, there were 11 mattersfor which people reported or sought
consultation, relating to issues of powerand sexual harassment, employment,
misconduct, and excessive work load.
We promptly confirmed these matters ina way satisfactory to the person making
the report. We will continue to use theCompliance Counseling Room to solve
matters of misconduct to the satisfactionof the people who are reporting and thus
prevent major problems from occurring.

Preventing Misconduct at
Bases Around the WorldThe Group’s Code of Conduct

39 SUMITOMO RUBBER GROUP CSR Report 2010

The Sumitomo Rubber Group’s Code of
Conduct revised in fiscal 2009 guide
employees in proper conduct by laying
down rules for abiding by the PoliticalFunds Control Act and the Public
Officers Election Law; by forbidding theacceptance of bribes; and by urging the
avoidance of antisocial forces.

Location: 1 Hirokubo, Kurabeishi, Shirakawa,
Fukushima 961-0017, Japan
TEL.+81-248-22-3311
FAX.+81-248-22-5689

Sumitomo Rubber Group employees
stationed outside Japan or scheduled tobe so are given training via the intranet on
those policies or educated about them.
As our overseas business grows, wewill ensure that we thoroughly comply
with laws and regulations by explaining
the Group’s Code of Conduct to local
employees. We are also making an
Anti-Monopoly Act manual for Europe
and are planning to distribute it to sales
companies on the continent.

BCP for Emergencies
There was a major outbreak of a newstrain of influenza in 2009. After theWorld Health Organization (WHO) raised
the pandemic alert to phase 4, Sumitomo
Rubber Industries, Ltd. immediately set
up a task force that gathered informationfrom WHO, the Center for Disease
Control (CDC) in the U.S., and Japan’s
Minister of Health, Labour and Welfare,and drew up emergency measures.
We called on all employees to takethorough care in matters of personal
health and sanitation, and we placed
hand sanitizers in all work places. We
also made sure the pandemic did notaffect our business by urging employees
to refrain from taking business trips andincreasing the amount of equipment forvideoconferencing. And each unit of thecompany formulated business continuity
plans (BCPs) in case of interruptions
from the influenza outbreak.
The number of Sumitomo Rubber
employees who had the flu peaked at 20 in
the second week of November. Fortunately,
this did not significantly affect our business.
In fiscal 2010, all sites are planning toformulate BCPs for earthquakes, a major
type of risk.

Number of Employees: 1,608

Masafumi Takami
Factory General
Manager,
Shirakawa Factory

Operation Start: 1974
The opening event for the GENKI
Forest attracted 120 participants

Site Area: 604,000m2
Obtainment of ISO 14001 Certification:
May 1997 (Certification No. YKA4004370)
Main Product: Automobile tires
Achievement of Zero Emissions: 2001

Volunteers pick up litter around
Komine Castle

Nagoya Factory
Location: 4-1, Shinsei-cho, Toyota,
Aichi 471-0837, Japan
TEL.+81-565-28-2345
FAX.+81-565-29-3565
Number of Employees: 1,163

Makoto Ishii
Factory General
Manager,
Nagoya Factory

Operation Start: 1961
Distributing oak tree seedlings at a sale
held at the factory gymnasium

Site Area: 190,000m2
Obtainment of ISO 14001 Certification:
March 1997 (Certification No. YKA4004286)
Main Product: Automobile tires
Achievement of Zero Emissions: 2001

Explaining tree-planting activities
to local government staff at thepark on the factory premise

Izumiotsu Factory
Location: 9-1, Kawahara-cho, Izumiotsu,
Osaka 595-8650, Japan
TEL.+81-725-21-1286
FAX.+81-725-21-1112
Number of Employees: 543

Ippei Oda
Factory General
Manager,
Izumiotsu Factory

Operation Start: 1944
Site Area: 76,000m2

A bowling tournament with local
residents was held as a part of the
GENKI Activities

Obtainment of ISO 14001 Certification:
March 1998 (Certification No. YKA4004319)
Main Product: Automobile tires, precision rubber parts for
medical equipment
Achievement of Zero Emissions: 2003

A fire evacuation drill held
jointly with the Izumiotsu
Fire Department

SUMITOMO RUBBER GROUP CSR Report 201040

Site Reports

Site Reports(Domestic Factories)(Overseas Factories)

Miyazaki Factory

Changshu/Suzhou Factory (China)

Location: 3 Tohoku-cho, Miyakonojo,
Miyazaki 855-0004, Japan

Location: Economic Development Zone, Changshu,
Jiangsu, China

TEL.+81-986-38-1311
FAX.+81-986-38-4129
Number of Employees: 1,310

Norifumi Fujimoto
Factory General
Manager,Miyazaki Factory

Operation Start: 2004

Obtainment of ISO 14001 Certification:
December 1997 (Certification No. YKA4004271)

Fire evacuation drill at the dormitory

Site Area: 305,000m2
Obtainment of ISO 14001 Certification:
October 2005 (Certification No. QAC0051047/B)
Main Product: Automobile tires

The factory playing field was
opened for use by local youth(the photo shows a rugby school)

Employees learn about laws
and regulations

Achievement of Zero Emissions: 2005

Ichijima Factory

Indonesia Factory

Location: 5 Kajiwara, Ichijima-cho, Tamba,
Hyogo 669-4323, Japan

Location: Cikampek, Indonesia

TEL.+81-795-85-3000
FAX.+81-795-85-3002
Number of Employees: 138

Factory General
Manager,
Ichijima Factory

Mitsuru Nagai
President,
P.T. Sumi Rubber
Indonesia

Number of Employees: 3,016
Operation Start: 1997
Sports day celebrating
Sumitomo Rubber’s 100th anniversary

Site Area: 182,000m2
Obtainment of ISO 14001 Certification:
May 1998 (Certification No. YKA4004371)

Achievement of Zero Emissions: 2001

(P.T. Sumi Rubber Indonesia)

TEL.+62-264-351346
FAX.+62-264-351345

Noritake Araki

Operation Start: 1996

Main Product: Golf balls

Site Area: 240,000m2

Main Product: Automobile tires, golf balls
Achievement of Zero Emissions: 2004

Presenting beetles to a
local kindergarten

Employees help plant trees in
the CSR Fun Rally, part ofCSR activities

Thailand Factory

Location: 410-1, Kitano, Noguchi-cho, Kakogawa,
Hyogo 675-0011, Japan
TEL.+81-79-424-0111
FAX.+81-79-426-0189

Location: Amata City Industrial Estate, Rayong,ThailandOperation Start: 1972

Masahiko Ueno

Number of Employees: 2,570

Site Area: 30,000m

41 SUMITOMO RUBBER GROUP CSR Report 2010

Toru Nagahata
President,
Sumitomo Rubber(Thailand) Co., Ltd.

Operation Start: 2006
Every year, the factory has a week-longwork practicum for junior high school
students

Obtainment of ISO 14001 Certification:
March 1998 (Certification No. YKA0771880)

Achievement of Zero Emissions: 2002

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

TEL.+66-38-953-000
FAX.+66-38-953-021

Factory General
Manager,
Kakogawa Factory2

Main Product: Blankets for offset printing presses, marine
fenders, precision rubber parts for office machines, gas
tubing, vibration control rubber dampers, precision rubberparts for medical equipment

Beach where mangroves have beenplantedObtainment of ISO 14001 Certification:
August 2003 (Certification No. 500146)

Kakogawa Factory

Number of Employees: 231

Chairman and President,
Sumitomo Rubber(Changshu) Co., Ltd./
Sumitomo Rubber(Suzhou) Co., Ltd.

Number of Employees: 2,700
A park next to the factory was opened
for public use. In fiscal 2009, over 2,000
people used the area (the photo showsa ground golf tournament)

Site Area: 268,000m2

Achievement of Zero Emissions: 2003

Yasushi Nojiri

TEL.+86-512-5269-0502
FAX.+86-512-5269-5022

Operation Start: 1976

Main Product: Automobile tires(Sumitomo Rubber (Changshu) Co., Ltd./Sumitomo Rubber (Suzhou) Co., Ltd.)

Rubber gloves for nursing care were
donated to the Zeni Bank, Kakogawa
Council of Social Welfare

As part of an environmental awarenesscampaign, games and quizzes provide
a fun way to encourage eco-action

Site Area: 597,000m2
Obtainment of ISO 14001 Certification:
January 2008 (Certification No. BGK600273)
Main Product: Automobile tires
Achievement of Zero Emissions: 2008

Making rock salt for wild
elephants as part of wildlife
preservation activities

SUMITOMO RUBBER GROUP CSR Report 201042

Site Reports(Overseas Factories)

Zhongshan Factory (China)(Zhongshan Sumirubber Precision Rubber Ltd.)

Location: Zhongshan Torch High-Tech Industry Development
Zone, Zhongshan, Guangdong, China

Makoto Sakuraoka

Operation Start: 2007
Donations for victims of the earthquake
in Qinghai

Site Area: 30,000m2
Obtainment of ISO 14001 Certification:
December 2004 (Certification No. CO42006)
Main Product: Precision rubber parts for office machines
Achievement of Zero Emissions: 2006

Main Product: Tennis balls

Cleaning up the areaaround the factory

Quality awareness has been raised throughfactory quality training and quality slogans(the photo shows quality training)

Cleveland Golf head office and factory, U.S.A.

(Sumirubber Vietnam, Ltd.)(Roger Cleveland Golf Company, Inc.)

Location: Huntington Beach, California, U.S.A.
TEL.+1-714-889-1300
FAX.+1-714-889-5890

Hiroomi Matsushita

TEL.+84-31-3743270
FAX.+84-31-3743272

President,
Sumirubber
Vietnam, Ltd.

Number of Employees: 244

Greg Hopkins
President and CEO,
Roger Cleveland
Golf Company, Inc.

Number of Employees: 370
Operation Start: 1982

Operation Start: 2007
Employees pray for the health of theirfamilies at Chinese New Year by planting
50 seedlings and 5,000 seeds

Site Area: 23,000m2
Obtainment of ISO 14001 Certification:
April 2008 (Certification No. QAC6003288)
Main Product: Precision rubber parts for office machines
Achievement of Zero Emissions: 2008

Malaysia Factory

Obtainment of ISO 14001 Certification

Site Area: 38,384m2
Obtainment of ISO 14001 Certification:
December 2009 (Certification No. BGK6008040)

Location: An Dong Commune, Hai Phong City,
VietnamNumber of Employees: 667

The process for product quality inspection

Main Product: Golf clubs

Several times a year, a sale oflong-term inventory items is held for
employees and nearby residents(Sumirubber Malaysia Sdn. Bhd.)

TEL.+60-4-4213121
FAX.+60-4-4213123

Site Area: 27,288m2

A flower arrangement contest
was held to celebrate
International Women’s Day

Environmental Reports of Overseas Factories

Location: Sungai Petani, Kedah, Malaysia

Noritada Tsujii
President,
Sumirubber
Malaysia Sdn. Bhd.

Operation Start: 1980
2

Trees and planters are placed aroundthe main entrance to prevent cars fromillegally parking

Obtainment of ISO 14001 Certification:
September 2005 (Certification No. KLR6003634)
Main Product: Rubber gloves

43 SUMITOMO RUBBER GROUP CSR Report 2010

President,
Srixon Sports
Manufacturing(Thailand) Co., Ltd.

Number of Employees: 319

Operation Start: 2000

Achievement of Zero Emissions: 2006

Hiroaki Tanaka

TEL.+66-3720-4868~71
FAX.+66-3720-4872

President,
Zhongshan Sumirubber
Precision Rubber Ltd.

Number of Employees: 663

Site Area: 56,000m(Srixon Sports Manufacturing (Thailand) Co., Ltd.)

Location: Kabinburi District, Pranchiburi Province,
ThailandTEL.+86-760-85314773
FAX.+86-760-85598924

Vietnam Factory

Thailand Factory (Tennis Ball)

Using natural lighting makes itbrighter and easier to see inside
the factory. It also saves electricity

Environmental Reports have been
published since 2006 at the
Changshu/Suzhou Factory in China,
since 2007 at the Indonesia Factory,
and since 2009 at the Thailand
Factory.
We strive to communicate by
constantly providing information on
things like environmental burden
from business activities and thegoal of our activities.

Environmental Report fromthe Thailand Factory(2009-2010)

Environmental Reportfrom the Indonesia
Factory (2007-2010)

Environmental Reportfrom the Changshu/
Suzhou Factory(2006-2010)

SUMITOMO RUBBER GROUP CSR Report 201044

Site Reports(Domestic Affiliated Companies)

Dunlop Retread Service Ltd.

Nakata Engineering Ltd.

Location: 355-9, Kitaoka-cho, Ono,
Hyogo 675-1318, Japan

Location: 619 Kande-cho-minami, Nishi-ku, Kobe,
Hyogo 651-2312, Japan

TEL.+81-794-63-0543
FAX.+81-794-63-6510
Number of Employees: 31

Kunihiko Nakano

TEL.+81-78-965-1015
FAX.+81-78-965-1020

President,
Dunlop Retread
Service Ltd.

Number of Employees: 120

Factory visit by health and sanitation
members of Nishiwaki City

Site Area: 15,700m2
Major Business: Manufacturing and marketing of retread tires
Achievement of Zero Emissions: 2006

Site Area: 37,000m2

Achievement of Zero Emissions: 2006

Dunlop Retread Service Hokkaido Ltd.

Dunlop Golf Club Ltd.

Location: 13-2, Koei-cho, Ebetsu,
Hokkaido 067-0051, Japan

Location: 3 Tohoku-cho, Miyakonojo,
Miyazaki, 855-0004, Japan

Yoshinori Takeyama

TEL.+81-986-38-4679
FAX.+81-986-27-5026

President,
Dunlop Retread Service
Hokkaido Ltd.

Site Area: 10,737m

Cleaning up the bus stop area
nearbyHideki Sano
President,
Dunlop Golf Club Ltd.

Number of Employees: 179

Operation Start: 1972
Newly installed screw compressor anddrain master (for separating oil and water)

2

Employees held a friendly greetings campaign

Obtainment of ISO 14001 Certification:
2004 (Certification No. YKA4004307)
Major Business: Designing, manufacturing and marketing of
rubber-product manufacturing machines and equipment

Scraping a variety of parts
helped achieve complete
zero emissions

Number of Employees: 17

President,
Nakata Engineering
Ltd.

Operation Start: 1914

Operation Start: 1972

TEL.+81-11-383-3235
FAX.+81-11-385-2891

Sadaaki Naito

Major Business: Manufacturing and marketing of retread tires

Operation Start: 1989 (Miyazaki Head office and Miyazaki
factory started operation)

The Discover, Solve and Improve Committee leads
activities like friendly greeting campaigns,
tree-planting, and cleanups

Site Area: 8,359m

2

Main Product: Golf clubs

Achievement of Zero Emissions: 2006

Achievement of Zero Emissions: 2004
The factory received the Miyazaki Labour
Bureau Chief Award for continuous
work days without an accident

Carrying out leak tests toprevent environmental pollution

SRI Engineering Ltd.
Location: 2-1-1, Tsutsui-cho, Chuo-ku, Kobe,
Hyogo 651-0071, Japan
TEL.+81-78-265-5716
FAX.+81-78-265-5717
Number of Employees: 181

Tetsunori Nakagawa
President,
SRI Engineering Ltd.

Operation Start: 2003
Since the sidewalk is directly in front of thesite following the building of an overpass,
employees do a cleanup once a monthSite Area: 5,660m2
Major Business: Designing and producing of metallic molds
for tire production
Achievement of Zero Emissions: 2008

45 SUMITOMO RUBBER GROUP CSR Report 2010

The factory received an Encouragement
Award in the first CSR Awards of theSumitomo Rubber Group for achieving
zero emissions and reducing waste

SUMITOMO RUBBER GROUP CSR Report 201046

Global Environmental Data

Independent Assurance Report

Because of the increasing importance of environmental data besides that for just domestic factories, we also gather data for overseas factories, domestic affiliates,
and worldwide non-production bases. However, not all consolidated subsidiaries are covered by the data, and it is also difficult to gather data from certain bases.
That is why we intend to step up our control system for overseas bases and to improve the coverage and accuracy of data. As well, we are aware that we must havea firm grasp of environmental data for non-production bases.

CO2 Emissions*1(tons-CO2)

Worldwide

Organic Solvent Emissions*2
Total

600,000

519,142(tons)

Total emissions

2,500

559,291
501,365

2,000

400,000

6,000

1,816 1,841

0Numberof sites

29

54

Numberof sites

54(tons-CO2)

Total

600,000

308,928 294,316
200,000

Numberof sites

53

Total emissions

Numberof sites

Overseas
Factories

6

6(tons-CO2)

Total

600,000(tons)

500

Vietnam Factory0
Numberof sites

Dunlop Retread Service Hokkaido Ltd.
Dunlop Retread Service Ltd.

6

6

600

200
0

2007 2008 2009

(FY)
Numberof sites

6

Total emissions

6(1,000 m3)

(FY)

6

Numberof sites

Total wastewater(tons)

60002007 2008 2009
6

6

(FY)

6
Total landfill

1,000

8,000

800

6,000

600
400

531

589

Numberof sites

Total

600,000

200

1,249
0

5

(tons)

6

6*3

Total emissions

0

2007 2008 2009

(FY)

2,500

Numberof sites

6(1,000 m3)

(FY)

7

Numberof sites

Total wastewater(tons)

6

8,000

2,000
400,000*5*5 1,575
1,423

2,000

538

2007 2008 2009

(FY)

7

(tons-CO2)

Total landfill

40002007 2008 2009

Domestic AffiliatedCompanies

4,712

1,000

200,000 201,744

Thailand Factory (Tennis Ball)(tons)

(FY)

18

4,000

255,543 256,577

Malaysia Factory

18

800

0

6

17

1,000

1,500

Thailand Factory
Zhongshan Factory (China)

Total wastewater

2,000

2,000
400,000

Numberof sites

53

842

6

11

4,000

2,500

Changshu/Suzhou Factory (China)
Indonesia Factory(1,000 m3)

52

5,242 5,052

2007 2008 2009
Numberof sites

6

29

6,000

0
(FY)

131
2007 2008 2009

(FY)

8,000

1,250 1,219

02007 2008 2009

38

103

10
2007 2008 2009
5

6

6

(FY)

*3

Total landfill

August 16, 2010

1,000
800

6,000

1,500

Yoshitaka Ono

Manager
KPMG AZSA Sustainability Co., Ltd.

600
4,000

SRI Engineering Ltd.

1,000

200,000

Nakata Engineering Ltd.

0 3,535 3,595 3,646

2007 2008 2009
Numberof sites

Non-Production
Bases Worldwide
In Japan: 29
Head Office and R&D Center,
Tokyo Head Office, etc.

(

400
2,000

500

Dunlop Golf Club Ltd.

(

(tons)

54

1,000

Ichijima Factory

Overseas: 7
Los Angeles Office,Dubai Office, etc.

28

232

0

2007 2008 2009

(FY)

1,500

236,130

200

0

500

Kakogawa Factory

800

400

2,000
400,000

Miyazaki Factory

6,555 6,709 6,211

4,000

2,500

Shirakawa Factory

Total landfill

1,000

2,000

2007 2008 2009

(FY)

(tons)

600

1,415

0

2007 2008 2009

Izumiotsu Factory

Total wastewater

1,000
500

Nagoya Factory(1,000 m3)

Waste to Landfill

8,000

1,500

200,000

Domestic
Factories

Wastewater

In light of the fact that in fiscal 2009
(the year covered by this report)
overseas operations took on growing
importance for Sumitomo Rubber,
as illustrated by CO2 emissions fromoverseas factories exceeding thosein Japan, we visited overseas
factories. We compared overseas
factories to their Japanese counterparts and found that rules for calculating and reporting environmental
performance indicators are notfollowed as thoroughly overseas. In
shooting for greater accuracy in the
CSR information reported, we believethat there is room for improvement
in how Sumitomo Rubber createsand implements systems for calculating and reporting of data.
In the 2010 CSR Report, as wellas the printed version, we haveassured the environmental performance indicators in the CSR information on the Web site (Japaneseonly), which gives a larger volume of
information and greater detail. We
believe that assurance for a greaternumber of media and indicators will
make the information in the report
more reliable in the eyes of stakeholders.
In disclosing important CSR information, we hope that efforts toward
maintaining and improving the completeness and the reliability of it tobe continued.

5

5

0
(FY)
Numberof sites

5(tons-CO2)

Total

600,000

34
32
2007 2008 200934
5

(tons)

0(FY)

5Numberof sites

Total emissions(1,000 m3)

5

2,500

)

400,000

5

0
(FY)

5

Numberof sites

Total wastewater(tons)

5

8,000

2,000

)

200

26
21
20
2007 2008 2009189
27 0.022007 2008 2009
5

5

(FY)

5

Environmentally Friendly Printing

Total landfill

Eco Paper

1,000

Eco Printing

800

6,000

600

1,500
4,000

200,000*5*5

2007 2008 2009
12

37

2,000

500

*6

0 4,935 5,837 5,012
Numberof sites

400

1,000

36

0
(FY)
Numberof sites

*5

*5

1
1
1
2007 2008 2009
12

37

36

0
(FY)
Numberof sites

Inspection at the Indonesia Factory

200

56
55
44
2007 2008 2009
12

35

35

0
(FY)
Numberof sites

5
1
1
2007 2008 2009
1

1

1

(FY)

This report is printed on FSC-certified paper, whichshows it came from responsibly managed forests.

Printing is carried out using a waterless printing
process, which does not give off harmful liquids.

The paper used for this report is made from thinned
trees; this helps keep forests healthy and growing.

Printing uses soy ink containing no VOCs
(volatile organic compounds).

*4

2 emissions are calculated using the Japan Rubber Manufacturers Association’s Guide to Calculating Greenhouse Gas Emissions. The domestic emission coefficient for*1 COelectricity is calculated using the fiscal 2004 published values from electric companies. The overseas emission coefficient for electricity is calculated using the WRI/WBCSD GHG

Protocol Initiative Calculation Tool.

solvent emissions are, as a rule, calculated using the calculation method from Japan Rubber Manufacturers Association. There are, however, some domestic affiliates and*2 Organic
overseas production bases that calculate using in-house standards.
Thailand factory (tennis ball).
*34 Excluding
waste to landfill for non-production bases covers only the Head Office and the Tyre Technical Center.
*5 TheCalculated for past fiscal years to improve accuracy of data collection.
*6 The Tyre Technical Center’s green electricity purchases were deducted from the fiscal 2009 CO2 emissions for domestic non-production bases. The amount before the deduction* was 5,650 tons-CO2.

47 SUMITOMO RUBBER GROUP CSR Report 2010

SUMITOMO RUBBER GROUP CSR Report 201048

GRI Sustainability Reporting Guidelines 2006(G3)Core:Core indicator Add:Additional Indicator
Page

Indicators

1. Strategy and Analysis
1.1
1.2

Statement from the most senior decision makerof the organization(e.g., CEO, chair, orequivalent senior position) about the relevanceofsustainability to the organization and its strategy.
Description of key impacts, risks, and opportunities.

P5-6
P5-6

2. Organizational Profile
2.1
2.2
2.3
2.4
2.5
2.6
2.7

2.8

2.9

2.10

Name of the organization.
P4
Primary brands, products, and/or services.
P3-4
Operational structure of the organization, including main divisions,P3-4
operating companies, subsidiaries, and joint ventures.
Location of organization’s headquarters.
P4
Number of countries where the organization operates, and names ofcountries with either major operations or that are specifically relevant P3-4
to the sustainability issues covered in the report.
Nature of ownership and legal form.
P4
Markets served (including geographic breakdown, sectors served, andP3-4
types of customers/beneficiaries).
Scale of the reporting organization, including: Number of employees;
Net sales (for private sector organizations) or net revenues (for public
sector organizations); Total capitalization broken down in terms of debt P4
and equity (for private sector organizations); and Quantity of products
or services provided.
Significant changes during the reporting period regarding size,
structure, or ownership including: The location of, or changes inoperations, including facility openings, closings, and expansions; andNot applicable
Changes in the share capital structure and other capital formation,
maintenance, and alteration operations (for private sector
organizations).
Awards received in the reporting period.

P18, P19, P25, P26, P28,P37

Reporting period (e.g., fiscal/calendar year) for information provided.
Date of most recent previous report (if any).

P2
June 2009(Japanese),
September 2009(English)
AnnualBack cover

3. Report Parameters
Report Profile
3.1
3.2

Reporting cycle (annual, biennial, etc.)
3.3
Contact point for questions regarding the report or its contents.
3.4
Report Scope and Boundary

3.5
3.6
3.7
3.8
3.9

3.10

3.11

Process for defining report content, including: Determining materiality;
Prioritizing topics within the report; and Identifying stakeholders theP2
organization expects to use the report.
Boundary of the report (e.g., countries, divisions, subsidiaries, leased
P2
facilities, joint ventures, suppliers).
State any specific limitations on the scope or boundary of the report8. P2, P47
Basis for reporting on joint ventures, subsidiaries, leased facilities,
outsourced operations, and other entities that can significantly affectNot applicable
comparability from period to period and/or between organizations.
Data measurement techniques and the bases of calculations, including
assumptions and techniques underlying estimations applied to theP22compilation of the Indicators and other information in the report.
Explanation of the effect of any re-statements of information provided
in earlier reports, and the reasons for such re-statement (e.g.,－
mergers/ acquisitions, change of base years/periods, nature ofbusiness, measurement methods).
Significant changes from previous reporting periods in the scope,
Not applicableboundary, or measurement methods applied in the report.

GRI Content Index
3.12
Assurance

Table identifying the location of the Standard Disclosures in the report. －3.13

Policy and current practice with regard to seeking external assurance
for the report. If not included in the assurance report accompanying thesustainability report, explain the scope and basis of any external
P2, P48assurance provided. Also explain the relationship between thereporting organization and the assurance provider(s).

SUMITOMO RUBBER GROUP CSR Report 2010
GRI Sustainability Guidelines 2006(G3)
1/6

GRI Sustainability Reporting Guidelines 2006(G3)Core:Core indicator Add:Additional Indicator
Page

Indicators

4. Governance, Commitments, and Engagement
Governance
4.1
4.2

4.3
4.4

4.5

4.6
4.7

4.8

4.9

4.10

Governance structure of the organization, including committees under
the highest governance body responsible for specific tasks, such as－
setting strategy or organizational oversight.
Indicate whether the Chair of the highest governance body is also an The Chair of the highest
executive officer (and, if so, their function within the organization’s
governance body is not also
management and the reasons for this arrangement).
an exective officer.
For organizations that have a unitary board structure, state the numberof members of the highest governance body that are independent－
and/or non-executive members.
Mechanisms for shareholders and employees to provide
P36
recommendations or direction to the highest governance body.
Linkage between compensation for members of the highest
governance body, senior managers, and executives (including－
departure arrangements), and the organization’s performance(including social and environmental performance).
Processes in place for the highest governance body to ensure conflicts－of interest are avoided.
Process for determining the qualifications and expertise of themembers of the highest governance body for guiding the organization’s －strategy on economic, environmental, and social topics.
Internally developed statements of mission or values, codes ofconduct, and principles relevant to economic, environmental, and
P5, P11,P15-16,P22
social performance and the status of their implementation.
Procedures of the highest governance body for overseeing theorganization’s identification and management of economic,
environmental, and social performance, including relevant risks andP9,P21
opportunities, and adherence or compliance with internationally agreed
standards, codes of conduct, and principles.
Processes for evaluating the highest governance body’s own
performance, particularly with respect to economic, environmental, and －social performance.

Comm itments to External Initiatives
4.11
4.12

4.13

Stakeholder Engagement
4.14
4.15
4.16
4.17

Explanation of whether and how the precautionary approach or
principle is addressed by the organization.
Externally developed economic, environmental, and social charters,
principles, or other initiatives to which the organization subscribes orendorses.
Memberships in associations (such as industry associations) and/or
national/international advocacy organizations in which theorganization: Has positions in governance bodies; Participates inprojects or committees; Provides substantive funding beyond routine
membership dues; or Views membership as strategic.

－

List of stakeholder groups engaged by the organization.
Basis for identification and selection of stakeholders with whom toengage.
Approaches to stakeholder engagement, including frequency ofengagement by type and by stakeholder group.
Key topics and concerns that have been raised through stakeholder
engagement, and how the organization has responded to those key
topics and concerns, including through its reporting.

－－P15-16－
P10,P33-34,P35-36,P37-38
P10,P23-24,P33-34

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GRI Sustainability Reporting Guidelines 2006(G3)Core:Core indicator Add:Additional Indicator
Page

Indicators

5. Management Approach and Performance
Economic
Disclosure on Management ApproachCore EC1.

Economic
Performance
Indicators

Core EC2.
Core EC3.
Core EC4.
Add EC5.

Market Presence Core EC6.
Core EC7.

Indirect Economic
Impacts

Core EC8.

Add EC9.

－

Direct economic value generated and distributed, including revenues,
operatingcosts, employee compensation, donations and other
P4,P37
community investments, retained earnings, and payments to capitalproviders and governments.
Financial implications and other risks and opportunities for the－organization’s activities due to climate change.
Coverage of the organization’s defined benefit plan obligations.
－
Significant financial assistance received from government.
－
Range of ratios of standard entry level wage compared to local－
minimum wage at significant locations of operation.
Policy, practices, and proportion of spending on locally-based
P35
suppliers at significant locations of operation.
Procedures for local hiring and proportion of senior management hired－from the local community at locations of significant operation.
Development and impact of infrastructure investments and services
provided primarily for public benefit through commercial, inkind, or pro －bono engagement.
Understanding and describing significant indirect economic impacts,
including the extent of impacts.

－

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GRI Sustainability Reporting Guidelines 2006(G3)Core:Core indicator Add:Additional Indicator
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Indicators

Environmental
Disclosure on Management Approach
Materials

EnergyWater

Biodiversity

Core EN１. Materials used by weight or volume.
Percentage of materials used that are recycled input materials.
Core EN2.
Core EN3. Direct energy consumption by primary energy source.
Core EN4. Indirect energy consumption by primary source.
Add EN5. Energy saved due to conservation and efficiency improvements.
Initiatives to provide energy-efficient or renewable energy based
Add EN6. products and services, and reductions in energy requirements as aresult of these initiatives.
Add EN7. Initiatives to reduce indirect energy consumption and reductions
hi waterd withdrawal by source.
Core EN8. Total
Add EN9. Water sources significantly affected by withdrawal of water.
Percentage and total volume of water recycled and reused.
Add EN10.
Location and size of land owned, leased, managed in, or adjacent to,Core EN11. protected areas and areas of high biodiversity value outside protectedareas.
Description of significant impacts of activities, products, and services
Core EN12. on biodiversity in protected areas and areas of high biodiversity value
outside protected areas.
Add EN13. Habitats protected or restored.
Strategies, current actions, and future plansfor managing impacts on
Add EN14.
biodiversity
Number of IUCN Red List species and national conservation list
Add EN15. species with habitats in areas affected by operations, by level ofextinction risk.
Core EN16. Total direct and indirect greenhouse gas emissions by weight.
Core EN17. Other relevant indirect greenhouse gas emissions by weight.
Core EN18. Initiatives to reduce greenhouse gas emissions and reductions
Add EN19. Emissions of ozone-depleting substances by weight.
NOx, SOx, and other significant air emissions by type and weight.

Products andServices
ComplianceTransport
Overall－
P17-18
P17-18
P17-18
P23-28
P17-18－－－
Not applicableNot applicableP13-14－
Not applicableP17-18－
P17-18
Not applicable－

Core EN20.

Emissions,Effluents, andWaste

P21-22－

Total water discharge by quality and destination.
Core EN21.

－

Core EN22. Total weight of waste by type and disposal method.
P19-20Core EN23. Total number and volume of significant spills.
－
Weight of transported, imported, exported, or treated waste deemed
Add EN24. hazardous under the terms of the Basel Convention Annex I, II, III, and －VIII, and percentage of transported waste shipped internationally.
Identity, size, protected status, and biodiversity value of water bodies
Add EN25. and related habitats significantly affected by the reporting organization’ －s discharges of water and runoff.
Initiatives to mitigate environmental impacts of products and services,
Add EN26.
P23-28and extent of impact mitigation.
Percentage of products sold and their packaging materials that are
Add EN27.
P20
reclaimed by category.
Monetary value of significant fines and total number of non-monetary
Core EN28.
Not applicablesanctions for noncompliance with environmental laws and regulations.
Significant environmental impacts of transporting products and other
Add EN29. goods and materials used for the organization’s operations, andP18transporting members of the workforce.
Add EN30. Total environmental protection expenditures and investments by type. －SUMITOMO RUBBER GROUP CSR Report 2010
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GRI Sustainability Reporting Guidelines 2006(G3)Core:Core indicator Add:Additional Indicator
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Indicators

Labor Practices and Decent Work
Disclosure on Management ApproachCore LA1.

Employment－

Total workforce by employment type, employment contract, and region. －Total number and rate of employee turnover by age group, gender, and In fiscal 2009, the average
range of services atregion.

Sumitomo Rubber Industry,Ltd. was 17.4 years and thejob turnover was 3.3%.

Core LA2.

Benefits provided to full-time employees that are not provided to－temporary or part-time employees, by major operations.
Core LA4. Percentage of employees covered by collective bargaining－
Labor/Manageme
Minimum notice period(s) regarding operational changes, including
nt Relations
Core LA5.
－
whether it is specified in collective agreements.
Percentage of total workforce represented in formal joint management
Add LA6. –worker health and safety committees that help monitor and advise on P32
occupational health and safety programs.
Rates of injury, occupational diseases, lost days, and absenteeism,
Core LA7.
P32
Occupationaland number of workrelated fatalities by region.
Health and Safety
Education, training, counseling, prevention, and risk-control programs
Core LA8. in place to assist workforce members, their families, or community
P32
members regarding serious diseases.
Health and safety topics covered in formal agreements with tradeCore LA9.
P32
unions.
Average hours of training per year per employee by employee
Core LA10.
P31
category.
Programs for skills management and lifelong learning that support theTraining and
Add LA11. continued employability of employees and assist them in managing
P31
Education
career endings.
Percentage of employees receiving regular performance and career
Add LA12.
－
development reviews.
Composition of governance bodies and breakdown of employees per
Diversity andCore LA13. category according to gender, age group, minority group membership, －Equal Opportunityand other indicators of diversity.
Core LA14. Ratio of basic salary of men to women by employee category.
－
Add LA3.

Human Rights－

Disclosure on Management Approach

Percentage and total number of significant investment agreements that
Core HR1. include human rights clauses or that have undergone human rights－
screening.
Investment andPercentage of significant suppliers and contractors that have
Procurement
Core HR2.
P35
undergone screening on human rights and actions taken.
Practices
Total hours of employee training on policies and procedures
Add HR3. concerning aspects of human rights that are relevant to operations,－
including the percentage of employees trained.
Non-discrimination Core HR4. Total number of incidents of discrimination and actions taken.
Not applicable
Operations identified in which the right to exercise freedom of
Freedom of
association and collective bargaining may be at significant risk, andAssociation andCore HR5. actions taken to support these rights.
－
Collective

Bargaining CoreChild Labor
Forced andCompulsory
Labor

Operations identified as having significant risk for incidents of child
Core HR6. labor, and measures taken to contribute to the elimination of child
P35
labor.
Operations identified as having significant risk for incidents of forced orCore HR7. compulsory labor, and measures to contribute to the elimination of
P35
forced or compulsory labor.
Percentage of security personnel trained in the organization’s policies

Security Practices Add HR8. or procedures concerning aspects of human rights that are relevant to －operations.
Total number of incidents of violations involving rights of indigenous
Indigenous Rights Add HR9.
people and actions taken.

Not applicable

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GRI Sustainability Reporting Guidelines 2006(G3)Core:Core indicator Add:Additional Indicator
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Indicators

Society
Disclosure on Management Approach
Community

Core SO1.
Core SO2.

Corruption

Core SO3.
Core SO4.
Core SO5.

Public Policy
Add SO6.

Anti-Competitive
Behavior

Add SO7.

ComplianceCore SO8.

Product Responsibility
Disclosure on Management ApproachCore PR１.

Customer Healthand Safety
Add PR2.

Core PR3.

Product andService Labeling

Add PR4.
Add PR5.
Core PR6.

MarketingCommunications－

Nature, scope, and effectiveness of any programs and practices thatassess and manage the impacts of operations on communities,
including entering, operating, and exiting.
Percentage and total number of business units analyzed for risks
related to corruption.
Percentage of employees trained in organization’s anti-corruption
policies and procedures.
Actions taken in response to incidents of corruption.
Public policy positions and participation in public policy development
and lobbying.
Total value of financial and in-kind contributions to political parties,
politicians, and related institutions by country.
Total number of legal actions for anticompetitive behavior, anti-trust,and monopoly practices and their outcomes.
Monetary value of significant fines and total number of non-monetary
sanctions for noncompliance with laws and regulations.

P39
P39
P39
P39
－
－
P39
Not applicable－

Life cycle stages in which health and safety impacts of products andservices are assessed for improvement, and percentage of significant P25-26,P28
products and services categories subject to such procedures.
Total number of incidents of non-compliance with regulations andvoluntary codes concerning health and safety impacts of products and Not applicable
services during their life cycle, by type of outcomes.
Type of product and service information required by procedures, andpercentage of significant products and services subject to such
P23-24,P27
information requirements.
Total number of incidents of non-compliance with regulations andvoluntary codes concerning product and service information and
Not applicablelabeling, by type of outcomes.
Practices related to customer satisfaction, including results of surveys
P33-34
measuring customer satisfaction.
Programs for adherence to laws, standards, and voluntary codes
related to marketing communications, including advertising, promotion, P39
and sponsorship.

Total number of incidents of non-compliance with regulations and
Add PR7. voluntary codes concerning marketing communications, including
Not applicable
advertising, promotion, and sponsorship by type of outcomes.
Total number of substantiated complaints regarding breaches of
Customer Privacy Add PR8.
Not applicable
customer privacy and losses of customer data.
Monetary value of significant fines for noncompliance with laws andCore PR9. regulations concerning the provision and use of products and services. Not applicableCompliance

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Ministry of the Environment Government of Japan"Environmental Reporting Guideline(Fiscal Year 2007 version)"
Indicator

Page

1.Basic Information (BI)
BI-1
BI-2
BI-2-1BI-2-2BI-3BI-4BI-4-1BI-4-2BI-5

P5-6
P2, P47, Back cover
P2, Back cover
P2, P47
P2
P11, P22
P22
P11, P22－

CEO’s statement
Fundamental requirements of reporting
Organizations, periods and areas covered by the reporting
Boundary of the reporting organization and coverage of environmental impacts
Summary of the organization’s business (including management indices)
Outline of environmental reporting
List of major indicators
Summary of objectives, plans and results regarding environmental initiatives
Material balance of organizational activities (inputs, internal recycling, and outputs)

2.Information and Indicators that Describe the Status of Environmental
MP-1
Status of environmental management
MP-1-1 Environmental policy in organizational activities
MP-1-2 Status of environmental management systems
MP-2
Status of compliance with environmental regulations
MP-3
Environmental accounting information
MP-4
Status of environmentally conscious investment or financing
MP-5
Status of supply chain management for environmental conservation
MP-6
Status of green purchasing or procurement
MP-7
Status of research and development of new environmental technologies and DfE
MP-8
Status of environmentally friendly transportation
MP-9
Status of biodiversity conservation and sustainable use of biological resources
MP-10 Status of environmental communication
MP-11 Status of social contribution related to environment
MP-12 Status of products and services that contribute to the reduction of negative environmental impacts

P21
－
P21
Not applicable－Not applicable－－P23-28P18－－
P13-14
P23-28

3.Information and Indicators that Describe the Status of Activities forEnvironmental Impacts and Reduction Measures (OPI)(Inputs)
OP-1
Total amount of energy input and reduction measures
OP-2
Total amount of material input and reduction measures
OP-3
Amount of water input and reduction measures(Internal recycling)
OP-4
Amount of materials recycled within an organization’s operational area
(Outputs)(Products)
OP-5
Total amount of manufactured products or sales(Discharge and emissions)
OP-6
Amount of greenhouse gas emissions and reduction measures
OP-7
Air pollution, its environmental impacts on the living environment, and reduction measures
OP-8
Amount of release and transfer of chemical substances and reduction measures
OP-9
Total amount of waste generation and final disposal and reduction measures
OP-10 Total amount of water discharge and reduction measures

4.Information and Indicators that Describe the Status of the Relationshipbetween Environmental Considerations and Management (EEI)

P17－－
P19-20－
P17-18－－
P19-20－－5.Information and Indicators that Describe the Status of Social Initiatives
1)
2)
3)
4)
5)
6)
7)
8)
9)

Information and indicators concerning industrial safety and hygiene
Information and indicators concerning employment
Information and indicators concerning human rights
Information and indicators concerning contributions to local communities
Information and indicators concerning corporate governance, corporate ethics, compliance, and fa
trade
Information and indicators concerning personal information protection
Information and indicators concerning a wide range of consumer protection and product safety
Economic information and indicators concerning organization’s social aspects
Information and indicators concerning other social aspects

P32－－
P13-14, P37-38
P39－
P33-34, P25-26, P28
P36－

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