S UMITO MO R UBBER GR O U P C S R R epo r t 2016

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

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

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

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

National movement for global warming prevention

September 2016 PR 267

Contents

03
The Sumitomo Rubber Group iscommitted to making contributions to society
by offering true value in our areas of businesstires, sports and industrial products.

Business of Sumitomo Rubber Group ........... 03
Performance Highlights ........... 05
Philosophy and Vision ........... 07

09 Creating Both Economic
Our Top Commitment

and Social Value

11

Feature Go for NEXT

Business Expansion

Accelerate Business Development in Europe
and North America Centered on the New Falken Brand

Evolve Technology

What we can do to create a sustainable society;high-quality products that are both safe and environmentally friendly.
Continuing to be a company whose existence is truly valuable, both for people
and for the environment—this is the kind of CSR management that
the Sumitomo Rubber Group aims to achieve.

..................... 15

Technical Development of New Materials for“Tires That Can Contribute to the Global Environment”

Create new value for more comfortable and appealing lifestyles for people allover the world through our daily business practices and by providing..................... 1119

CSR Activity Report
Sumitomo Rubber Group CSR Report ......... 19
Materiality Characteristics
and Dialogue with Stakeholders ......... 21
Fiscal 2015 Targets and Results ......... 23

Green
Ecology
Next
Kindness
Integrity

Green Initiative ......... 25
Ecological Process ......... 27

Next-Generation Product Development ......... 31
Kindness to Employees ......... 33
Integrity for Stakeholders ......... 37

Stakeholder Dialogue ..................... 41

Malaysia Factory

Promote Regional Contribution Activities thattake into Account Local Culture and Customs
Site Report ..................... 45
Independent Verification Report /Third-Party Opinion ..................... 47
Honors and Certifications from Outside Organizations /Editorial Policy ..................... 49

Sumitomo Rubber Group
Tire Business

01

S UMITOMOSUMITOMOMITOMO RUBBER
RUBBE
RUBBER GROUPGGROU
OUP CSR REPORTREPORREORT 2016
201

Sports BusinessIndustrial and other products Business

SUMITOMO RUBBER GROUP CSR REPORT 201602

Group Overview (as of the end of December 2015)

Business of Sumitomo Rubber Group
Tire BusinessSports BusinessIndustrial and other products Business• Company name / Sumitomo Rubber Industries, Ltd.
• Head Office / 3-6-9 Wakinohama-cho, Chuo-ku, Kobe, Hyogo

Sumitomo Rubber Industries sells its mainbrands of tires—Dunlop and Falken—forpassenger cars, trucks, buses and motorcycles both in Japan and overseas. Our tires
employ state-of-the art environmental
technologies.

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

The Hybrid Business Division of Sumitomo
Rubber Industries manufactures andmarkets a wide range of products, including precision rubber parts for officemachines, vibration control rubber dampers, artificial turf for sports arenas, flooringmaterials, transportable wheelchair ramps,
rubber gloves, gas pipes, blankets foroffset printing presses, waterproofing
rubber, and medical rubber stoppers. In
2015, we acquired a Swiss medical rubbercompany, thus expanding our health carebusiness.

• Establishment / 1909
• Paid-in capital / ¥42.7 billion• Consolidated net sales / ¥848.7 billion• Number of employees (consolidated) / 33,185• Consolidated subsidiaries / 77 (of which 28 are in Japan)• Affiliates / 15 (of which 8 are in Japan)

Production factories
Japan (Shirakawa, Nagoya, Izumiotsu,
Miyazaki), China, Indonesia, Thailand,Brazil, South Africa, Turkey, United States.
Production companies
13 consolidated subsidiaries, 4 affiliates
Sales companies
29 consolidated subsidiaries, 2 affiliates
Tire test courses
Okayama, Nayoro, Asahikawa, United States
R&D facility
Tire Technical Center

Production factories
Japan (Ichijima, Miyazaki), Indonesia,
Thailand, U.S.A.

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

Production companies
4 consolidated subsidiaries, 1 affiliate
Sales companies
10 consolidated
subsidiaries,
1 affiliates

R&D facility
Golf Science CenterNorth America R&D
CenterEurope,Middle East,
AfricaAsia,
Oceania1130

consolidated
subsidiaries

consolidated
subsidiaries

consolidated
subsidiaries

4.6%¥848.7 billion(as of the end of
December 2015)

Tire business

86.3%

North America,
Latin America

Japan

28

Industrial andother products business

9.1%

Sales companies
4 consolidated subsidiaries

affiliates

Breakdown of Net Sales by Business Segment

Sports business

Production companies
4 consolidated subsidiaries, 1 affiliate

6651-0072, Japan8

affiliates

8

consolidated
subsidiaries

1

affiliates

Breakdown of Net Sales by Region
Japan

Others

43.7%

13.5%
Europe6.7%
North America

15.6%
Asia

20.5%

¥848.7 billion(as of the end of
December 2015)

By dissolving our alliance with Goodyear
In 2015, we dissolved our alliance agreement with The Goodyear Tire & Rubber Company, which was originallyconcluded in 1999. We are accelerating expansion of our brand globally, utilizing both our Dunlop brand with
its global brand recognition, and the Falken brand, known particularly in the U.S. for its high performance. In
North America, as well as letting us use the Dunlop brand as original equipment (OEM) tires on automobiles
and motorcycles produced by Japanese automakers’ U.S.-based manufacturers, this has allowed us the freedom
to establish our own production and R&D bases. The dissolution of the alliance agreement let us acquire theNorth American factory (New York state), and we will fully leverage this production capacity to expand ourNorth American operations. We will also be able to establish our own production and R&D bases in Europe.

Accelerated Global Expansion
03

SUMITOMO RUBBER GROUP CSR REPORT 2016

SUMITOMO RUBBER GROUP CSR REPORT 201604

Performance Highlights
CSR-Related Indicators

Main Financial Indicators
Net Sales (consolidated)

¥

848.7
1.3

Operating Income (consolidated)billion%increaseYearon year936.2

billion

Stockholders’ Equity (consolidated)

¥

423.9

billionYear
on year

Total Assets (consolidated)

¥

77.1
10.6

¥

billionNumber of employees (consolidated)%decrease

Net Income (consolidated)

¥

55.8
4.9

Year
on yearROE

Debt/equity ratio

13.3 %

0.6

billionG reen Green Initiative

Ecology

Cumulative Number of Trees Planted

CO2 Emissions from Production
Activities (6 factories in Japan,
year on year)

1.57

million13,000treduction%
increase

Times

ROA

8.1%

Ecology

Ecological Process

Ecological Process

Employees at
a ISO 14001 Certified
Sites as Percentage of All Employees

78.5 %

N ext Next-Generation Products Development

Kindness Kindness to Employees

Integrity Integrity for Stakeholders

New Tire Technologies for Safer,More Environmentally-friendly Tires

Early Return-to-Work
Support System

CSR Funds (total amount donated)

Development of
GYROBLADE& CORESEAL

Introduction of
daycare support
system

¥N ext Next-Generation Products Development

34.33

millionOverseas sales ratio

33,185 56.3 %
2,961
Year
on yearincrease

Net Sales
Consolidated

8,000

7,806

8,376 8,487

Global Environmental Data (CO2 emissions)

R&D Expenses(¥100 million)(¥100 million)(10,000 trees)(t-CO2e)(Million yen)

4,634 4,529
3,989 4,062 4,489

771

539

2013

2014

Total Assets

2015 (FY)

8,675

8,000

6,716

2013

2014

2015 (FY)

ROE, ROA(based on operating income)

4,000

3,298
1,977 2,442
2012

2013

4,134 4,239

14.7

8.3

9.9

15.6

9.6

14.3
9.4

13.3

2015 (FY)

2013

2014

SUMITOMO RUBBER GROUP CSR REPORT 2016

600,000

50

2012

2013

2015 (FY)

2014

2013

2014

2015 (FY)

2012

2013

2014

2015 (FY)

Integrity Integrity for Stakeholders(Times)(No. of people)(Cases)

1.1
1.0

24
3

20

0.9

18
3

15

0.7

0.6

21
15

21
19

15

10

2011

2012

2013

2014

16

15

2
16

2

14

10

14

2012

2013

2014

2015 (FY)2013

62015 (FY)2014

Tire business

5,794

Cases

2,882

Cases

8
Sportsbusiness

18,424 Cases(as of the end of
December 2015)

9,748

0
2011

2012

Number of Counseling Cases for
Customers by Business Segment

1052015 (FY)2011

Industrial andother products
business

20

0

0
2012

0
2011

Number of Alerts or Counseling Cases
to Compliance Counseling Room

25

23,543 23,372

5,000

Kindness Kindness to Employees

1.4

21,822
19,274 19,539

10,000

Number of Employees Using
Childcare Leave System

5

2011

20,0000
2011

25,00015,000200,000

Men

05

148.5

400,0002015 (FY)

0.5

0
2014

2012

8.1

5.0

139.5

687,000
648,000 668,000

734,000 786,000

Debt/equity ratio
1.5

16.0

129.8

157.6

0
2011

ROA

20.0

10.0

2011

2012

Ecological Process

800,000

100

0
2011

15.0

7,375

355
284

(%)

9,736 9,362

119.1

200

ROE

(¥100 million)

200
150

200

Stockholders’ Equity

10,000

558

448

400

0
2012

Total Assets, Stockholders’ Equity(consolidated)

0

532

400

2011

2,000

771

863

697
600

0

6,000

600

800

7,102

4,000
2,000

Number of Trees Planted in One
Million Trees for Local Forests Project

1,000

10,0006,000

Ecology

Net Income (consolidated)

Non-consolidated(¥100 million)

6,769

G reen Green Initiative
Operating Income (consolidated)

2011

2012

2013

2014

2015 (FY)

Cases

Women

SUMITOMO RUBBER GROUP CSR REPORT 201606

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

In order to fulfill our social responsibilities as a corporate
citizen, the Sumitomo Rubber Group will continuously
strive to be a reliable and trusted global corporate groupthat enriches people’s lives through the creation of newvalue while at the same time pursuing greater happinessfor all of our group employees and contributing extensively
to both our communities and to society as a whole.
1. We will respond to our customers’ demands by striving to provide better products witha strong sense of responsibility and a solid grounding in the principle of “genchi-genbutsu”(seeing things with one’s own eyes).
2. We will pioneer a new era by flexibly adapting to the times while maintaining a solidmanagement foundation.
3. We will actively seek out and develop new market needs by enhancing our R&D capabilities
and advanced proprietary technology.
4. We will engage in environmentally responsible business practices and pursue thedevelopment of environmentally friendly products and technologies.
5. We will create “attractive working conditions” and contribute to “more comfortable living.”

ValuesAction Principles

Integrity &Soundness• Customer first• Genchi-Genbutsu• Scientific approach• Continuous improvement• Get to Know One Another• Face to face communication• Report, liaise and consult on all levels• Problem Awareness• Set Benchmarks• Teach / Learn by Doing (OJT)• Achieve Results through Teamwork

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

07

SUMITOMO RUBBER GROUP CSR REPORT 2016

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

Pursuit of Economic Value
2020 Financial Targets¥1,200 billion
Operating Income ¥150 billion
Operating profit ratio ≥12 %
ROE
≥15 %
ROA
≥14 %
Debt/equity ratio ≤0.5

Long-Term Vision Action Slogan

Go for NEXTNet Sales

Become a true global player with both high profits and rapid growth.
Pursue increased value for all stakeholders and greater happinessfor all employees.

Growth Engines forAchieving Our Goals / New Challenges

The Challenges of New Markets
Insatiable Drive for Innovation
Entering New Business Fields
The World’s Best Onsite Operational
Skills, Research and Development
Capabilities and Technical Skills
The Best Profitability
in Our Industry

The SRI Way“Integrity and Soundness”“Communication”“Set the Bar Higher”“Cultivate People”
The Sumitomo Business Spirit

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

Pursuit of Social ValueCSR Guideline

G reenGreeninitiative

Ecology EprcoocleosgsicalKindness Ktoinemdnpelsosyees

Next

Next-generation
product development

Integrity Istnatkeeghriotlydeforsr

Basic Philosophy of CSR

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

SUMITOMO RUBBER GROUP CSR REPORT 201608

Our Top Commitment

Creating Both Economic and Social Value
The pursuit of social value, like the pursuit of economic value, isabsolutely essential for a company to achieve sustained growth.
As a key element of Sumitomo’ s philosophy, this is an idea thathas been passed down through the generations throughout
Sumitomo’s 400 years of history.
By continually providing “The World’ s Best Value” for all of
our stakeholders, the Sumitomo Rubber Group aims to always bea corporate group that achieves sustained growth while at thesame time contributing to the development of a sustainable society.

Accelerating the Development of Our
Business in Europe and North America
toward the Accomplishment of Our
Long-Term Vision—VISION 2020
VISION 2020 is the Sumitomo Rubber Group’ s Long-Term Vision,reflecting our corporate stance as we simultaneously pursue both
economic and social value under our stated goals of “Becominga True Global Player with High Profits and High Growth” and“Pursuing Enhanced Value for All Stakeholders and Greater Happiness for All Employees.” Toward the accomplishment of thesegoals, we have chosen “Go for NEXT” as our rallying slogan for
VISION 2020 with the aim of uniting all of our employees
around a shared strong desire to contribute to society for
future generations by actively taking on New Challenges.
At the same time, we have also defined three key
Growth Engines to serve as pillars supporting our overall
efforts to take on various New Challenges: the “Challenges of New Markets,” an “Insatiable Drive for Innovation” and “Entering New Business Fields.”
In October of 2015, we dissolved our longstanding Global Alliance with the Goodyear Rubber& Tire Company. This resulted in the lifting of various restrictions that had been placed on our business activities in Europe and North America
under the terms of the alliance, giving us the
freedom to conduct R&D and manufacturingin these regions and thus allowing us theflexibility to develop our global businessmore proactively. Adding the subheading “Business Expansion in Europe andNorth America” to our “Challengesof New Markets” Growth Engine, wewill continue working to further promote the global proliferation of envi-

ronmentally friendly fuel-efficient tires—one of our group’ s major
strong suits. At the same time, we will also continue to expand
our business in growth markets, especially those in developing
countries—as originally envisioned when we conceived the“Challenges of New Markets” Growth Engine—where we will
strive to maintain harmonious coexistence with local communities
by contributing to their growth through extensive local hiring,
striving to reduce our impact on local environments and so forth.

Embracing the “Insatiable Drive forInnovation” That Brought Us“ADVANCED 4D NANO DESIGN”
Thanks to our efforts under our “Insatiable Drive for Innovation” Growth Engine, in 2015 we completed the developmentof ADVANCED 4D NANO DESIGN, a breakthrough new materials development technology that brings together the full capabilities of some of the most cutting-edge experimental facilities
in all of Japan, including the world-class K computer. Not stopping there, we have continued actively working to develop outstanding products using ADVANCED 4D NANO DESIGN andour other proprietary technologies, such as our groundbreaking
NEO-T01 next-generation tire production system.
Furthermore, we have also been moving forward withefforts to promote the greater utilization of sustainable natural
resources as a means of reducing the usage of petroleum andother finite fossil resources. In particular, having made numerous
advances in biomass technology while developing ENASAVE
100, the world’ s first* 100% fossil resource-free tires madeentirely from all-natural materials, we are now working tofurther enhance our proprietary biomass technology so as todevelop new high-performance biomass materials. We are planning to begin releasing products that incorporate the first generation of high-performance biomass materials in 2016 and willcontinue working to provide new value in terms of safety, comfort and environmental performance through the developmentof unique and innovative rubber technologies in the future.
When it comes to “Entering New Business Fields,” weare especially focusing our efforts on expanding our Healthcare Business. Having acquired and taken over the operationsof a Swiss manufacturer of medical rubber parts in January of
2015, we are now taking advantage of the High Quality andHigh Performance that we have cultivated on the Japanesemarket to deliver safety and peace of mind to medical andcaregiving facilities throughout the world.

Contributing to the Creation ofa Sustainable Society by Striving to Be
a Truly Valuable Company with a Strong
Sense of Purpose
In order for a company to continue to grow and develop,that company must continually earn and maintain the trust ofsociety by not only fulfilling its social responsibilities as a corporate citizen, but also through active contributions to thedevelopment of a sustainable society. This is one of the reasons why we have established the SRI WAY, which defines
the specific Values and Principles for Action that we wish for
all of our employees to practice and exemplify as they go
about their day-to-day work. It is also the reason why westrive to engender a corporate culture where all employees
feel a strong sense of purpose and where they can encourage
one another to do their best and set the bar higher together
in a workplace that has a free and open atmosphere.
Further, guided by our Basic CSR Philosophy and our CSR
Guidelines as encompassed in the acronym “GENKI,” as well as
our CSR Message—“For You, For the Earth”—we are not only
working to fulfill our various social responsibilities in terms ofcompliance and environmental protection, but are also actively
applying our advanced technical research and development
capabilities toward solving society’ s problems and contributing
to global progress with an eye toward the next generation. At
the same time, we are also striving to develop products with anemphasis on customer safety and comfort while pursuing everhigher levels of product quality and economy as well as enhancing the soundness and transparency of our management sothat we may maintain our integrity and continue to be areliable corporate group for all of our stakeholders.
In order to continue being a corporate group that provides
true value for people, for communities and for society now and in
the future, the Sumitomo Rubber Group will continue to reinforce
the foundation of our business and strengthen our group’ s horizontal and vertical connections in order to build a strong organization that can withstand the changes of the times as we continue
to contribute widely to the creation of a sustainable society.
On behalf of the Sumitomo Rubber Group, I sincerely
hope for and look forward to everyone’ s continued guidanceand support. In addition, I wish to say that we would verymuch appreciate your candid thoughts and opinions withregard to this year’s CSR Report.

* Since the use of synthetic rubber became standard in the tire industry (based on ourown in-house research).

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

09

SUMITOMO RUBBER GROUP CSR REPORT 2016

SUMITOMO RUBBER GROUP CSR REPORT 201610

Feature

Go for NEXT
Kindness
Kindness to employees

Integrity
Integrity for stakeholders

Business Expansion

Accelerate Business Development in Europe
and North America Centered on the New Falken Brand

The Turkey factory started production in June 2015, andprovides the European market with a major supply capacity for high-performance tires. This has set a daily production target of 30,000 tires by the end of 2019.

In North America, we are working at
sales and promotions of Dunlop
brand motorcycle tires. We hope toestablish a No.1 brand status by
expanding sales to Harley-Davidson,a longtime customer for OEM tires,and by expanding our activities into
the popular motocross segment.

Dissolving our alliance with The Goodyear Tire & Rubber Company in 2015 has set the stage for a new expansion ofbusiness in Europe and North America. As well as strengthening the Falken brand, we are developing a more robust
supply system using local production, and an R&D system that can quickly respond to local requirements.
By dissolving our alliance with Goodyear

We have enabled production and development in Europe and North America
At the time we first concluded our alliance agreement with The
Goodyear Tire & Rubber Company in 1999, this had the benefits oftechnology exchange, joint development, and enabling us to focus ourefforts on our operations in Japan and newly emerging markets.
However, in recent years these reasons are not as valid as they once
were, resulting in us moving towards dissolving the agreement, and areorganization of our operations. This means that as well as in Russia,
Turkey, and other regions in which we are operating independently, we
can look forward to an aggressive expansion of our operations in
Europe and North America, which formerly had restrictions on us
conducting production and development work.

In particular, in North America, the Dunlop trademark rights forall business in OEM tires for Japanese automakers and in motorcycle
tires which had belonged to Goodyear were transferred to us, andthis has resulted in a notable increase in freedom to expand ourbusiness. However, in Europe, Dunlop trademark rights will remain
with Goodyear, but we will have our own production and R&D
bases, with which we will be able to further strengthen the Falken
brand, already popular in Europe.
The Falken brand is key to further accelerating our businessexpansion in Europe and North America.

In

AmericaIn

Dramatic increase in the freedom to expand ourbusiness activities in the North American market

We own our own bases, and arestrengthening our Falken brand business

TurkeyFactory*

EuropeJune 2015
Start of production

2020 sales

40 %UP

2020 sales

60 %UP(Over 2015)

to Japanese* Restrictedautomobile manufacturers
and motorcycle business.

USA
Factory(Over 2015)

China

Japan

Acquired
October 2015
ThailandIndonesia
BrazilSouth Africa

Tire production sites

Announcement of the new global brand message “FALKEN
ON THE PULSE,” at the “New Falken Announcement”

New Falken Global Expansion

A Youthful and Energetic Brand
Especially in Europe, Falken has increasing recognition in motor
sports and as a high-performance tire brand. This is gaining
accolades, including having its tires evaluated as high-performance by Europe’s largest automobile club ADAC (the General
German Automobile Club).
We will continue to grow Falken into a youthful and energetic
global brand, and targeting a global expansion of sales, in July

11

SUMITOMO RUBBER GROUP CSR REPORT 20162015 we held the “New Falken Announcement.” This announced
a common, worldwide brand image—FALKEN ON THE PULSE.
This message communicates an energy, and based upon this, weare carrying out activities to increase value, including sponsorshipand support for the German Bundesliga, as well as major league
baseball and air races. We are working to broaden our productline-up worldwide, and this will improve our market share.
SUMITOMO RUBBER GROUP CSR REPORT 201612

Feature

Vastly More Flexibility for North America

Go for NEXT

Integrated Production and Development forHigher Responsiveness to Market Requirements

Business Expansion

A system in which tires are developed and produced locally is essential if we are to
expand our business to let us rapidly provide high-functionality and quality tires thatmeet market needs in Europe and North America. To this end, we have dissolved ouralliance with Goodyear thus freeing up production and development in the North American market, and have also acquired a USA factory. Improving our supply system will let
us newly develop the DUNLOP brand as original equipment (OEM) tires on automobiles
produced by Japanese automakers’ U.S.-based manufacturers, and on motorcycles.
The future will see us work to expand sales of high-value-added tires that
include high-performance SUV tires as well as fuel-efficient tires, and we will look intostrengthening our supply capabilities in the North American region correspondingly.
We are urgently moving forward with consolidation and expansion of local
development systems, so that we can quickly accommodate the latest market needs
through the timely supply of tires. We are considering the full-scale launch of technical centers in 2017, and hope to use these initiatives to increase sales volumes by
60% by 2020 (over 2015 levels).

In

USA Factory

A Production Base Providing Locally Produced Tires
for the U.S., Canada, and Mexico

USA
Factory

Outline of USA Factory

USA Factory for Local Production and Consumption

Strengthening Supply Systems
for the North American Market

13

SUMITOMO RUBBER GROUP CSR REPORT 2016

Tonawanda (suburb of Buffalo),
New York state, United States of America

Products

Automobile tires, tires for trucks andbuses, motorcycle tires

Employees

USA Factory
yearly production capacity

Production of
the first Falken tirein 2016

Sumitomo Rubber USA, LLC

LocationStart of business 1923

Newly acquiring this USA Factory means we are moving some manufacturing of Falken tires for the U.S. replacement market awayfrom Thailand, and towards a local production and consumption
model for the North American market.
The first Falken tire was manufactured there in 2016. In addition
to the high-performance tires for which Falken is known, thisfactory will also produce high-added-value products including tires
for passenger vehicles, trucks, buses, and motorcycles.

4.6

Company namemilliontires

1,198 (as of Dec. 2015)

Ergonomics-based

safetyeducation

Employee Voices

Guaranteeing Safety of Employees, Essential to Stable Supply

Ergonomics-Based Safety Education
One important aspect of a manufacturing base in order to ensure astable supply of products to the market is preventing workplace
accidents amongst employees. We aim to have a shared awarenessof safety throughout the whole Group, and are carrying out safety
training for manufacturing executives from the USA Factory, atfactories in Japan and Indonesia. We are carrying out these activities
in our own factories, focusing on not only the 5S methodology(“sort,” “set in order,” “shine,” “standardize,” and “sustain”), butalso learning safety activities including safety chants as well as thepoint-and-call method.
The USA Factory is also focusing on ergonomically-based safetymeasures. We have ergonomics specialists permanently on staff, andprovide a special training area called the “Body Shop.” Training employees how to move sensibly and avoid undue strain prevents accidents
and injuries, and this is directly related to creating a safe and stableproduction environment.

Manufacturing Tires While
Taking Care of Our Bodies
Joe Hinkle
Sumitomo Rubber USA, LLC
Safety & Medical Department,
Safety & Medical Manager

Here at the USA Factory, we carry out safety training
based on ergonomics. Employees receive safety
training when first hired, as well as periodicallyafter that. This ensures that they know what
actions are effective in preventing accidents andinjury, and how to reduce the strain on their bodies.
We’d like a factory known for its safety, so wewill keep implementing these activities to this end.

SUMITOMO RUBBER GROUP CSR REPORT 201614

Feature

Go for NEXT
N ext
Next-generation
product
development

Evolve Technology

Technical Development of New Materials toward the Creation of“Tires That Can Contribute to the Global Environment”
Considering efforts toward tackling environmental issues to be among our top management priorities, Sumitomo
Rubber Industries is actively working to create “Tires That Can Contribute to the Global Environment” with a focus
on three key themes: “Fuel Efficiency,” “Raw Materials” and “Resource Savings.”
At the same time, we are also making further advancements in materials development technology in order to pushtire performance to ever higher levels.

In

Japan

The Development of ADVANCED 4D NANO DESIGN—
the Cutting-Edge Simulation Technology Supporting
the Sumitomo Rubber Group’s Outstanding Products~cm

3D Structureof Silica~μm

Silica Interface Polymer/ Mobility~Sub μm

Heterogeneous
Crosslinking
Structures~nm
Crosslinking Structures/ Polymer Mobility

Using Cutting-Edge Analysis and Simulation Technology to Better Understand the Internal Structures of Rubber

ADVANCED 4D NANO DESIGN—New Materials Development Technology
There are three major performance traits demanded of tires—“Grip
Performance,” which ensures safety; “Fuel Efficiency Performance,”
which relies on reducing rolling resistance; and “Wear Resistance
Performance,” which involves increasing tire strength to contributeto resource savings. However, there is normally a tradeoff between
these three performance traits—i.e. an improvement in grip performance will result in a drop in fuel efficiency performance and soon. In order for us to improve all three of these performance traits
simultaneously, it is essential that we elucidate which mechanisms
manifest themselves in each of these performance traits based upona thorough understanding of the internal structures of rubber.
Thus, in 2011, our company established 4D NANO DESIGN,
a new materials development technology that utilizes the large-scale
synchrotron radiation facility “SPring-8” and the K computer toallow for detailed analysis of the structures and properties ofmolecules at the nanometer level. Thanks to 4D NANO DESIGN,
we succeeded in achieving balanced high performance in termsof both grip performance and fuel efficiency, leaving wear resistanceas the only remaining performance trait to be reconciled. Because

15

SUMITOMO RUBBER GROUP CSR REPORT 2016

macro-level wear occurs due to the spread of rubber breakdown,
which originates at the molecular level, in order to improve wear
resistance performance, it is first necessary to understand how
various phenomena occurring at the nano-level develop into
rubber breakdown at the micro-level and beyond. In order toelucidate the complex mechanisms behind rubber breakdown
and apply this understanding to the creation of new materials,
we needed to bring about the next evolution of 4D NANO DESIGN
technology. In 2015, we succeeded in bringing about this evolution
with the establishment of ADVANCED 4D NANO DESIGN.

• Three Major

Contradictory
Tire Performance
Traits

Wet Grip(Safety)

Tradeoff
Fuel Efficiency
Performance(Rolling Resistance)

Wear Resistance(Strength/Resource Savings)~Sub nmInterface Polymer Structure

Combining the Capabilities of Japan’s Most Cutting-Edge Research Facilities and Equipment

For Analysis and Simulation of Material Structures and Behaviors Across Multiple Scales
ADVANCED 4D NANO DESIGN is a groundbreaking new materials
development technology that utilizes world-class research and development facilities, representing the culmination of state-of-the-art Japanesescience and technology. Conventional analysis technologies havebeen unable to shed light on where breakdown occurs within rubbermaterials or how breakdown phenomena spread. However, ADVANCED
4D NANO DESIGN makes it possible to perform highly realistic simulationsof the complex internal structures and behaviors of rubber materials
across multiple scales of magnitude simultaneously thanks to the
combined capabilities of “SPring-8,” which is able to analyze the internal
structures of rubber; the “J-PARC” Proton Accelerator and Experimental
Facility, which can analyze the behavior of molecules; and the K computer,which is 1,000 times more powerful than typical supercomputers.
ADVANCED 4D NANO DESIGN allows for accurate predictionsof the multifaceted properties of rubber materials, thereby opening
up new possibilities for simultaneous improvements in all three of the major
contradictory performance traits: Grip, Fuel Efficiency and Wear Resistance.

• Combining theCapabilities ofJapan’s Most
Cutting-Edge
Research Facilities©RIKENK Computer©RIKEN

SPring-8 Large-Scale
Synchrotron Radiation
Facility©J-PARC

J-PARC Proton
Accelerator andExperimental Facility

SUMITOMO RUBBER GROUP CSR REPORT 201616

Controlling the Various Forms of Stress That Occur within Rubber at the Molecular Level

Employee Voices

The Establishment of “Stress Control Technology”
It has long been thought that polymer around the silica-polymer
interface, i.e. the link between the polymer that constitutes the fabricof tire rubber and the silica that is used as a reinforcing agent, hasa major impact on tire performance. However, previous analysis
technologies lacked the ability to observe these interfaces in detail,leaving their specific structures and behaviors shrouded in mystery.
Now, having applied ADVANCED 4D NANO DESIGN to the task of
shedding light on these mysteries, we have succeeded in elucidating not
only the structures and behaviors of the polymer around the silica-polymer interface, but also the mechanisms behind the transmission ofvarious forms of stress, which is a major cause of wear within rubber.
Furthermore, by utilizing advanced simulation technology to
When a tire comes
into contact with theroad surface, its tread
rubber deforms, creating stress within therubber that ultimately
leads to wear.

Tire

Stress fromRoad

design new materials to reduce this stress, we have also succeeded insuppressing the formation of the internal gaps (voids) that form asa result of stress and lead to rubber wear. Thanks to this new “StressControl Technology,” we made a big splash at the “44th Tokyo Motor
Show 2015” when we unveiled a concept tire* featuring treads that
achieved wear resistance performance of 200%* compared to ourstandard tire tread rubber in 2011 (the year when we first unveiled ouroriginal 4D NANO DESIGN) while maintaining high fuel efficiency andwet grip performance. From 2016 onward, we will begin applying
this breakthrough technology, which allows us to freely control
the occurrence of stress within rubber, to products for market.

• Conventional Rubber

Gaps (Voids) Form Due to Stress• Rubber Incorporating

Stress Control Technology

Controls Stress to Suppress
Void Formation

FeatureGo for NEXT
Evolve Technology

Evolved Simulation
Technologies Contributing
to the Developmentof High-Performance Tires

Materials Innovation forHigher Tire Performance

Masato Naito

Our goal is better understanding the internal
structure of rubber, down to the molecular level,
and we are looking to establish analysis technologies utilizing the new SACLA X-ray freeelectron laser.
SACLA generates an X-ray laser beam one
billion times more intense than the laser generated by the Spring-8, which itself is 10 billion times
the brightness of the sun. SACLA is a researchfacility that can shed light on the incredibly fast
movement and deformations of matter. In the
future, we hope to use SACLA in the innovationof materials that will achieve dramatic improvements in tire performance.

Research & Development HQ, Research Department I
Manager (Ph. D, Engineering)

Road Surface

Employee Voices

The establishment of ADVANCED 4D NANO
DESIGN has let us take a more accurate anddetailed look at the internal structure of rubber
down to the molecular level, helping us more
rapidly develop-high performance tire materials.
We will keep on researching innovative
simulation technologies with the goal of
attaining our long-term vision of VISION 2020.

Hiroyuki Kishimoto
Research & Development HQ, Chemical Analysis
Center, Manager (Ph. D, Science)

Concept Tire That Achieves
200%* Wear-Resistance—“Wear-Resistant Max Tread
Rubber Tire*”*Compared to the Standard Tread
Rubber Used in Our 2011 Tires*This is a concept tire and, as such,there are currently no plans
to make it available for sale.

Employee Voices• Development of High-Performance
Biomass Materials

Increasing
Applications

2016
Creating High
Performance
1st Generation
Long-Lasting Grip
Performance

Improving
Performance
Adapting for
Mass Production
Creating General-Purpose
Biomass Technology
for Mass Production

2020
Creating High
Performance
2nd Generation
Pursuing Greater Safety,
Comfort & Economy

Expanding Applications for
Mass-Produced Tires
Reducing Environmental Impact+
Pursuing Ever Higher Performance

Exploring the Possibilities of Biomass Materials &Developing Tires with Long-Lasting Grip Performance
Our company has long been actively engaged in the development ofboth fossil resource-free materials and biomass materials, as evidenced
by the 2013 launch of “ENASAVE 100,” our groundbreaking 100%
fossil resource-free tires made from all-natural resources. Since then, we
have continued to evolve these efforts, applying the knowledge that
we gained in developing “ENASAVE 100” toward our next step: thedevelopment of “High-Performance Biomass Materials,” which will not
only reduce the environmental impact of our tires, but also contributeto improving safety, comfort and economy for our customers.
For our first generation biomass technology, we focused our attention on
the peculiar properties of biomass raw materials. Having performed original

17

SUMITOMO RUBBER GROUP CSR REPORT 2016

molecular design and repeated experimentation in order to produce thedesired properties in terms of bonding with the surrounding rubber andproviding the same flexibility as oil, we have succeeded in developing anentirely new softening agent that gives tires “Long-Lasting Grip Performance.”
In 2016, we plan to release new tires produced using rubber thatincorporates this new softening agent to prevent the hardening thattypically affects conventional tires as oil seeps away over time, thereby giving
tires longer lasting grip performance in order to enhance customer safety.
With the aim of developing tires that achieve even higher performance in terms of safety, comfort and economy by the year 2020, we
have already begun research and development for our second generation of biomass technology, with which we will continue to pursue
biomass materials with ever higher levels of performance.

Even Higher Functionality
from Biomass Materials
Kazuhisa Fushihara
Material Research & Development HQ,Material Planning Department
ManagerOver 10,000 types of raw materials can be usedin creating biomass materials, but the key isselecting the right ones. We were a pioneer ininvestigating the possibilities of biomass
materials, and having created a “Green Technology Team” with the main theme of developing
biomass materials, and have a long-term plan toincrease our knowledge in this field.
In the future, we will combine a range oftechnologies, and we are working together as ateam in order to not only develop high-functionality biomass materials for second-generation
products starting in 2020, but also to develop
materials to satisfy customers.
SUMITOMO RUBBER GROUP CSR REPORT 201618

CSR Activity Report
Guided by our Basic CSR Philosophy and our CSR Guidelines
as encompassed in the acronym “GENKI,” we have formulated these CSR Guidelines. The Sumitomo Rubber Group is
promoting and improving our CSR activities based aroundthe GENKI guidelines which have become firmly
ensconced amongst Group employees.
In social contribution activities, at our business sites
within Japan and overseas we are interacting with local
communities, with activities such as cooperating in

What are the GENKI CSR Guidelines?
Since 1988, the Sumitomo Rubber Group has had in place the“GENKI Activities” project (meaning activities that give everybody
energy), in which employees take part in volunteer and environmental conservation activities one a way to contribute to society.
These are the essence of our CSR activities, and havebecome firmly entrenched throughout the Company andGroup. In 2008 GENKI was set as a keyword in our CSR Guidelines. Employees play a key part in these activities, and therefore
ensuring that they are all familiar with this keyword increases
awareness of CSR and improves the activities themselves.

tree-planting activities, volunteer work, and working withNPOs and NGOs. Underlying these activities is our Group
Philosophy of “making significant contributions to local
communities and society,” and the idea of “contributing
to society” as outlined in the Sumitomo Business Spirit.
Through our business we make a wide-ranging contribution to society by providing products, technologies, andservices that are useful to society, and will in the future asa corporate member of society continue to implement
initiatives to improve society as a whole.

Eco-First commitments makeenvironmental protection a top priority.
The Sumitomo Rubber Group makes environmental protection
efforts a top management priority. In March 2009, as part of the
Eco-First Program established by the Ministry of the Environment,
the Group made a “pledge of eco-first” to the
Minister of the Environment. This pledge has beenmostly accomplished, and in March 2012, a new“pledge of eco-first (renewal letter)” was signed.

CSR Guidelines

Green

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

Ecology

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

Green Initiative

Ecological Process

Next-Generation
Product Development

Next

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

Kindness

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

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

Integrity

Ensuring thorough corporate governance
Promoting dialog with stakeholders
Ensuring thorough compliance

Keeping social contribution in constantmotionSupply Chain Management

Kindness to Employees

Integrity for Stakeholders

Eco-First commitments Under the Eco-First Program, which aims to encourage

leading companies to redouble their environmental preservation efforts, companies make acommitment to the Minister of the Environment to implement measures to curb global
warming to help Japan meet its targets for the Kyoto Protocol.

Implementing worldwide
environmental management

Sumitomo Rubber Group CSR Activities Report

Green

E cology

Next

Integrity

Promoting Green Initiatives Worldwide

Also Improving Environmental Awareness Overseas

Further Improved Fuel Efficiency

Aiming for Zero Accidents

Strengthened Compliance Education

The Sumitomo Rubber Group plants trees and flowers atfactories and sales companies in Japan andoverseas. In fiscal 2015, we planted
a total of 90,829
trees throughout
the whole Group.

We are carrying out
educational andpromotional activities to increase environmental awareness and educational activities in Japanand overseas.

We have developed tires with a 37% decreasein rolling resistance over previous models,giving improvements in fuel efficiency.

A total of 61,400 employees have participated inhealth and safety training. This enhances workplace safety.
P.35

We hold lectures for personnel in management positions, and provide explanations forGroup companies, including
those overseas.

P.25

P.31

Holding an energy-saving
exhibition at the Changshu
Factory (China)

Promoting theProtection of
Water Resources

Protection andCultivation ofEndangered Species

Echinops planting
in Yamada Elementa
ry School, Miyazaki

P.26

SUMITOMO RUBBER GROUP CSR REPORT 2016

P.38

*Compared to standard
Sumitomo model SP670

Thailandhonburi,coast at Cethnoplanting
Mangrove

The “Acorn Project” activities protect biodiversity,and through these, we areprotecting and cultivating
endangered species.

37% lowerrolling resistance

P.30

19

K indnesst facility

stewater treatmen

Turkey Factory wa

simulation ofres

nce lectu

Compliabe

Learning to
Pass on Skills

We have set a targetof recycling 100% of
the wastewater at
our factories aroundthe world by 2050, andare already working
towards this end.
P.29

y:

irakawa Factor

simulation (Sh ve chain)
Accident safetya dri
ing caught inExternal inspe
ction by youngemployees of
the South African FactoryWith the aims ofimproving how wepass on skills, and ofincreasing motivation,
we regularly hold the
Skill Olympics. For the
first time, fiscal 2015
saw South Africa
participate as well.

Legally-mandated basic knowledge
in-house seminars

P.34
SUMITOMO RUBBER GROUP CSR REPORT 201620

CSR Activity Report

Materiality Characteristics andDialogue with Stakeholders
Taking into account international guidelines and stakeholders' views, determine the materiality of CSR-related
activities (priority issues).
For 2016, we have prioritized the 19 indicators of the CSR guidelines, and will further work towards these initiatives.

Materiality Identification Process

Dialogue with Stakeholders

To energize the CSR activities of the Sumitomo Rubber Group,and become a corporate group trusted by society, in fiscal 2008
the Group formulated its Basic Philosophy of CSR and its CSR
Guidelines (five areas comprising 13 indicators) made up of thefive areas of Green (green initiatives), Ecology (reducing theenvironmental impact of business activities), Next (developmentof next-generation technologies and products), Kindness (kindness to employees), and Integrity (integrity for stakeholders)In fiscal 2011, we identified which of these 13 indicators in
the CSR guidelines were the most important (their “materiality”).
In fiscal 2014, taking into account the impact on stakeholders and society due to changes in the business environment, we set 19 key CSR indicators.
In fiscal 2015, we prioritized efforts for these 19 indicators, based upon required content in the “GRI Guidelines(G4)*” and based upon a survey of all stakeholders.
These are proving useful in future CSR activities.

We periodically carry out surveys to learn about the various
opinions and expectations of stakeholders, and while taking
their views into account, we also place importance on dialogue
with stakeholders in pursuing our daily business activities.

* Global Reporting Initiative: An international organization that issues CSR reporting
guidelines.
Thus far, four editions have been published.

Survey and Questionnaire for Stakeholders
1 Supplier CSR interview surveys
2 CSR report readers questionnaire (employee)
3 Environmental brand survey

We are conscious of our responsibilities towards stakeholders, and are working to promote communications througha variety of means.

How We Communicate with Stakeholders

4 Employee questionnaire

FeaturesMain responsibilities

Communications method

Automobile manufacturers,
manufacturing companies,
sales companies, sports facilities,
consumers, etc.

• Quality management• Development of safer products• Safe driving awareness• Providing product information• Customer consultation and service

5 Comprehensive consumer survey
6 Questionnaire to individual shareholders

Customers

and sales departments• Providing information on websites,and services

In light of the “GENKI 5 Key Areas, 19 Indicators”
we have set priority items in terms of“Important Issues for Stakeholders” and“Important Issues for the Sumitomo Rubber Group.”

Determining materiality, and prioritization

contact• Customer response through serviceetc.

• Exhibitions and events

Clients

Rubber raw materials manufacturers,
other materials manufacturers,
trading companies,
processing companies• Fair and reasonable procurement• CSR procurementetc.

• Dialog through day-to-day business• Confirmation visits to procurement
partners, and feedback• Questionnaires to procurement
partners• Holding explanatory meetingsetc.

19 Indicators Included in “GENKI” CSR Guidelines, and Materiality (2016 onwards)
Managing Environmental Pollutants

Creating a Low-Carbon Society

Implementing worldwide environmental management

Building a Recycling-Oriented Society

Promoting dialog with stakeholders

Developing environmentally friendly products

Local
Communities

Pursuing safety and comfort, economy, and quality

Residents, municipalities,
local government,
educational institutions,and other organizations nearfactories and offices• Social contribution activities• Green initiatives• Protecting biodiversity• Participation in local events• Cooperation with NGOs and NPOs insocial contribution activities• Participation in economic andindustry organizations• Dialog with local governments

etc.

Important Issues for Stakeholders

Ensuring thorough corporate governance
Ensuring thorough compliance

Shareholders Shareholders (individuals: 25,812,
and Investors financial institutions: 971)

Individual and institutional investors

Helping to curb global warming by planting trees

Protecting Biodiversity

Fostering better relationships with communities through tree planting

Fostering human resource development and making jobs rewarding

Keeping social contribution in constant motion

Creating a safe, employee-friendly workplace• Return of profits to shareholders• Enhancement of corporate value

through dialogue with shareholders
and investors• General meeting of shareholders• Timely disclosure of news releases
and publications• Issuance of financial information

including fact books, annual reports,and shareholder communications• Providing information on websites, etc.
• Results briefings etc.

Achieving a work-life balance
Promoting Diversity
Respect for Human Rights
Supply Chain Management

Employee
Numbers

Sumitomo Rubber Group: 33,185,
Sumitomo Rubber Industries: 5,617(Male: 5,204, female 413)

• Fostering human resources• Occupational health and safety• Health management• Diversity in employment• Consideration of work / life

• Providing information through• Consideration of human rights• Dialog with employeeswith president to exchange views
with management• CSR Report survey etc.

balance

Important Issues for the Sumitomo Rubber Group21

SUMITOMO RUBBER GROUP CSR REPORT 2016

internal newsletters, intranet, etc.

• Cooperation with labor-management

councils and employee representatives• Compliance consultation service• Holding of round-table discussions

SUMITOMO RUBBER GROUP CSR REPORT 201622

CSR Activity Report
Based on our GENKI CSR Guidelines, we have verified the progress and successes of our fiscal 2015 Action Plan and have set
targets for fiscal 2016. Let’s look at the main targets.

Fiscal 2015 Targets and Results2016 Target

ActionPlan

2015 Target

Self-Evaluation

Check

Do

2015 Results

Note: Items marked with a are verified by third parties. See our website for details on Fiscal 2015 Activities and Fiscal 2016 Targets.
(Scheduled to go online at end of July 2016.)

CSR Guidelines

2015 Activities and 2016 (Excerpt from major items)

Plan 2015 Target

Green
Green initiative

Helping to curb global warmingby planting trees
Fostering better relationships withlocal communities through tree
planting
Protecting Biodiversity

Ecology• Proceed with the Million Trees for Local Forests project

Expand from just weeding to include forest thinning andplanting trees• Proceed with Acorn Project• Prepare the biotopes• Continue to protect and raise endangered species

G4-SO1

G4-EN13• Proceed with Million Trees for Local Forests project
Expand area of thinning• Proceed with Acorn project• Acorn planting and giving away seedlings

Fiscal 2015: 15,167 Cumulative total: 154,769

100%• Building of biotope at Ichijima Factory• Continuing from 2014 with transplanting of boneset

100%• Build biotopes• Protect and cultivate endangered species

along riverbed in Kakogawa

Expand exchange with communities, including giving
away seedlings94%• ≥1.5% reduction over previous ﬁscal year

G4-EN18

2.8% increase94%• ≥1.5% reduction per unit over previous ﬁscal year

G4-EN23

8.3% increase89%• ≥2.0% reduction over previous ﬁscal year

• (Six factories in Japan)

G4-EN22

7.1% increase• Water usage: ≥1.4% reduction over previous ﬁscal year

Managing Environmental
Pollutants• (Six factories in Japan)

G4-EN2184% decrease

Implementing worldwide
environmental management• Maintain ISO 14001 Global Integrated Certiﬁcation

—

91%
100%
100%

Developing environmentallyfriendly products• Create high-functionality biomass materials

plants, and announce details of functionality (lasting
grip performance)

100%• Develop and release products created using• Announce “GYROBLADE” airless tire, and “CORESEAL

100%• Productize of new technologies• (Six factories in Japan)

CO2 emissions: ≥2.7% reduction over previous ﬁscal year

• (Six factories in Japan)

Discharged waste (excepting valuable substances to berecycled): ≥2.6% reduction over previous ﬁscal year

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

Pursuing safety and comfort,
economy, and quality• Improve safety by developing airless tires and sealant tire

Kindness

Fostering human resource
development and making jobs
rewarding• Foster effective human resources to support global development• Follow-up for further vitalization of the workplace

Kindness to employees

Creating a safe, employee-friendly
workplace

Achieving a work-life balance

G4-EN27

technologies• Throughout a health and safety PDCA cycle focused on risk

assessments and mental health care, promote employees inbeing safety conscious, and sound in mind and body• Get more male employees to take childcare leave• Implement the daycare support system• Get more employees to use shortened working hours for• Maintained and continue• Develop high-performance softeners derived fromsealant tire technologies• Carried out level-based and selective training to improve
G4-LA10G4-LA6

G4-LA3childcare leave

Integrity for stakeholders

100%

Fiscal 2015: 90,829 trees planted Cumulative total:
1,576,106 trees planted

Action 2016 Target

3.1% increase

Energy saving (crude oil equivalent per unit): ≥2.6% overprevious ﬁscal year

Discharged wastewater: ≥1.8% reduction over previous ﬁscal year

Integrity

Check Self-Evaluation*

G4-EN5Creating a Low-Carbon Society

Building a Recycling-Oriented
Society

Next-generation product development

Do 2015 Results• Million Trees for Local Forests project

Expand exchange with communities, including giving away seedlings• (Six factories in Japan)

Ecological process

Next

GRI Guidelines

skills and knowledge, as well as language training to
improve language skills throughout the group as a whole• Reduced overtime hours worked by promoting
improvements in operational efﬁciency• Increase in number of workplace accidents due tocarelessness over previous ﬁscal year Also, an increasein the number of workdays lost to illness over previous
ﬁscal year

100%
80%

• 2 men used system for childcare leave for men• Better awareness of systems that use the intranet• 58 women used shortened working hours for childcare leave

80%
100%

Promoting Diversity• Help employees achieve their own work style to tap individual

G4-LA12• Total of 12 women in managerial positions (increase of 2),

80%

Respect for Human Rights• Hold human rights-related training

G4-HR2• Human rights-related training held

80%

Ensuring thorough corporate
governance• Conduct ongoing efforts to strengthen the internal control system• Comply with the Corporate Governance Code

G4-34

100%

Ensuring thorough compliance• Ensure thorough Group-wide abidance with Corporate

G4-56• Disclose operational status of internal control systems• Enact corporate governance guidelines• Consolidate compliance activities systems at overseas bases
training in bribery prevention, antitrust laws,• Provide
and legal risks at overseas subsidiaries

Promoting dialog withstakeholders
Keeping social contribution inconstant motion• Promote dialogue with a range of stakeholders

G4-26• At the Malaysia Factory, carry out dialogue with local• Work together with NPOs (continue and expand activities)

G4-SO1

Supply Chain Management• Promote CSR in the supply chain

G4-HR10
G4-EN33

100%
100%
100%

employee strengths

Philosophy and Corporate Code of Conduct

percentage of employees with disabilities 2.33%

100%

community associations, government, and schools, etc.
• Carry out manufacturing workshops at 5 schools• Carry out environmental workshops with 6 groups• Hold CSR explanatory meeting regarding CSR with suppliers• ≥80% reduction over ﬁscal 2005
• Maintain Global Integrated Certiﬁcations
high-functionality biomass materials• Ongoing, planned fostering of global humanresources• Follow-up to creating a rewarding workplace

based on evidence from employee questionnaires• Compliance with laws and regulations, and enhanced healthand safety activities Promote personnel and a workplace thatabides by safety rules. Also introduce a health care support
system, and set up a new mental health consultation service.
• Get more male employees to take childcare leave• Promote use of systems• Get more employees to use shortened working hours
for childcare leave• Ongoing employment of female employees andemployees with disabilities
Employedcapable human resources without regard to•gender or similar factors• Human rights-related training held
• Board of Directors’ consultative body “Nomination andCompensation Committee” held

• Number of independent directors increased (current 2• Promotion of the Group’s compliance and risk3)

management• Promote dialogue with a range of stakeholders• Work together with NPOs (continue and expand activities)• Promote CSR in the supply chain

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

1
23

SUMITOMO RUBBER GROUP CSR REPORT 2016

target value – actual value
target value

100
SUMITOMO RUBBER GROUP CSR REPORT 201624

GreenGre e nGreen Initiativei n i t i a t i ve

Low Tide Clean Offensive (Fukuoka, Fukuoka)a)Creating lake habitat for aquatic life
(Ichinoseki, Iwate)

Management Approach
Formerly, factories used to be constructed in farmland or in themountains, with the trees in these areas being cut down, destroying the natural environment. In the spirit of Sumitomo’s CSR activities, which started with tree planting activities on Besshidozan,
one part of our green initiatives is continuing with tree planting
activities on and around our bases within Japan and overseas.
In fiscal 2009, we launched the Million Trees for Local Forests
project to plant trees and flowers on and around our basesaround the world. We have kept well ahead of our initial 20-yeartarget, reaching 1.57 million trees planted as of fiscal 2015. We
will continue to plant trees and create new forests.

TEAM ENASAVE Future Project,
Protecting Culture and Nature

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

150

Initialtarget

100

50

0
2009

2010

2011

2012

2013

2014

2015

2029 (FY)

Acorn Project in Japan
Other tree-planting activities in Japan
Team ENASAVE Green ProjectOverseas tree-planting activities

With the goal of protecting Japan’s vanishing cultural assets and natural environment, in fiscal 2013 we launched the
TEAM ENASAVE Future Project in cooperation with the National Federation of
UNESCO Associations in Japan (NFUAJ).
As a part of this project, in fiscal
2015 we held clean-up activities at 10
locations around Japan, with the helpof employees, their families, and local

associations. Together with others,
including volunteers from the public aswell as radio personalities, these events
have seen 810 people participate.

Cooperation with the NFUAJ

Employee Voices

Preserving this valuable, rich naturalenvironment for generations to comeToshiyuki Tsuchida

Helping to Curb Global Warming While
Fostering Better Relationship with Local
Communities through Tree Planting
Planting Trees in GENKI
Forests in Japan
We plant trees and other vegetation at
our 11 “Sumitomo Rubber GENKI Forests” (23 ha), as well as on and aroundour bases in Japan.
When planting trees, one has tobe careful of invasive species that may
have a negative effect on local varietiesof vegetation. That is why we only plantseedlings grown using seeds gatheredin the target area. This is our “Acorn
Project.” Our efforts in protecting biodiversity also include planting sasanqua,cherry, dogwood, maki, rhododendron
indicum, and rhododendron, with these
efforts aimed at increasing the amount

Planting cherry trees in the Miyazaki GENKI Forest

25

SUMITOMO RUBBER GROUP CSR REPORT 2016of greenery around us.
Care for forests after these havebeen planted is also important, andwe clear weeds regularly for several
years after trees and plants havebecome established. Trees that wereplanted in 2009, at the start of this project are now around 4 m in height, with
foliage from adjoining trees interfering,and so we have started thinning workin these areas.

Thinning work in GENKI Forest in Tanba, Hyogo(Top photo: before thinning, bottom photo: after thinning)Greening Activities Overseas
We plant trees and flowers at our factories and sales bases around the world.
In fiscal 2015, we planted 47,493 trees
at our bases worldwide.
A portion of the sales proceedsfrom ENASAVE fuel-efficient tires goesto supporting TEAM ENASAVE Green
Project mangrove planting activities. We
planted 20,000 mangrove trees in fiscal
2015, bringing the total so far to
1,139,617 trees planted. Under our 1
Pair for 1 Love initiative, some profits
from each pair of gloves sold go to tree
planting activities in Borneo, Malaysia.
In fiscal 2015, we planted 2,400 trees
under this initiative.

Mangrove planting on the coast at Chonburi, Thailand

Harmonious Coexistencewith Nature, and Protecting
Biodiversity
Protection and Nurturing ofEndangered Species
Sumitomo Rubber Group works to protect biodiversity through business activities
that make sustainable use of the many
elements that make up biodiversity.
The Acorn Project aims to preserve
the biodiversity of DNA. The project
preserves and fosters endangered species to protect the biodiversity of seeds.
Our main species are the Katakuri
family at the Shirakawa Factory, boneset (asteraceae), (cyperaceae) and sanguisorba tenuifolia at the Kakogawa
Factory, echinops (asteraceae) at the
Miyazaki Factory, arimagumi (elaeagnaceae) in the Kobe area, and sasakia
charonda (Japanese emperor butterflies)at the Ichijima Factory.
Other environmental activities
include the Miyazaki Factory having presented higotai seedlings to city elementary and junior high schools since 2009.
In 2015, these were donated to, andplanted by Yamada Elementary School in
Miyakonojō, Miyazaki. We can now see
these blooming at 13 out of the 19
schools at which these have been planted.

DUNLOP TYRE HOKURIKU Co. Ltd., Fukui Branch

I participated in the “Bringing Storks Back to
Echizen!” (Echizen, Fukui) event as a part of
TEAM ENASAVE Future Project. It was pouring
down with rain, but a total of 40 of us battledwith the mud to clear the area to create anenvironment more welcoming to storks. We also
create a waterways for loaches and killifish forthe birds to eat.
This area plays host to many rare species ofanimal—one which surprised me in particular
was the scarlet dwarf dragonfly, little more than acentimeter long. We are working to preserve
these important creatures and rich naturalenvironment, to create flourishing semi-wildareas that will play host to storks into the future.

Echinops planting in Yamada Elementary School, Miyazaki

T o p i c s

Protection and Cultivation of Endangered Species
at the Ichijima Factory Biotope
In October 2015, a biotope was completed at the Ichijima Factory. During excavations in its
construction, precious water weeds (four types of which were endangered) were germinated,
and again established within the biotope. From 2016, in cooperation with the “Tanba Stone
Loach Preservation Society,” “Tanba Forest Park,” and the “Suma Aquatic Park,” we have beenprotecting and nurturing the endangered lefua echigonia (stone loach), and in the future, thehope is to return this to its natural habitat. To this end, from
September 2015. The Tanba
Stone Loach Preservation Society has been participating in
regular surveys and in maintenance of the biohabitat. Together with breeding the Japaneseemperor butterfly, we are also
In a biotope
breeding the stone loach.
Endangered stone loach

SUMITOMO RUBBER GROUP CSR REPORT 2016

26

E

CSR Activity ReportcologyEc o l o g i c a l

Reducing the Environmental Impactof Our Business Activities

p ro c e s sModal shift to ferries

Management Approach
As a global company responsible forthe environment, Sumitomo RubberGroup will fulfill its social responsibility
to realize sustainable developmentof society through our any activities.
In March 2009, Sumitomo Rubber
Industries, Ltd. was certified as an
Eco-First company by Japan’s Ministerof the Environment. We have set
targets under our three eco-first commitments: create a low-carbon society,build a recycling-oriented society, andpromote harmonious coexistencewith nature.

12
3Creating
a Low-Carbon
Society

293

264

293

288
261

289
262

249

1.481
200

275

On sale in fiscal 2013

•The Acorn Project

Average

Plant overtrees/year

biodiversity.

600

1.2

365
1.958

100

0.932

0.905

0.915 0.891 0.916

0.902 0.6

200

386

409

(Average)

Achieved

On schedule(t-CO2e/unit)(t-CO2e)

4,500

3.00

4,000 0.843

1.20

3,992

4,010

4,008

3,737

441

2.00

1.584 1.549 1.561 1.480 1.566 1.535 1.00

3,500

0.90

3,940
3,672

0.60

3,370
0.533 0.521 0.538 0.513

3,000

0.498 0.490

0.30

92
0
1990
Total*1

2011

2012

2013

Total emissions*2

2014

02015 2016 (FY)
TargetBasic unit

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

27

SUMITOMO RUBBER GROUP CSR REPORT 2016

0

0
2004
Total*3

2011 2012
Basic unit2013 2014

2015

2016
Target(FY)*3 According to the Guide to Calculating Greenhouse Gas
Emissions, published by the Japan Rubber Manufacturers
Association. The electricity emission factor is as per the
WRI/WBCSD GHG Protocol Initiative Calculation Tool (2004).

0

0
2004
Total*4

0.63

163

160

2011

2012 2013 2014
Basic unit

200

200

150

0.609
0.593

140

0.582

0.600

Total

2011

2012 2013 2014

Basic unit

2015

0.591
0.57
0
2016 (FY)
Target

0

0
Total

2013

2,295

0.500

2,291

2,193
1,976 0.400
0.300

2014

2015

Basic unit

0.302 0.299 0.308 0.293

1,000

34

2012

2,117

2,273

1,855

0.60

0.50

50

2011

2,000

0.464

1,500

0.613 0.616 0.604

2004(kL/unit)

(kL)

2,500

183
0.70

0.59

0.593

0.80

0.676 0.685 0.672

100

149

171

156

176

(kL/t)

208

0.721

160 0.61

(FY)

2016
Target0.277 0.272 0.200
0.100

500
0
2004
Total

2011

2012 2013 2014

Basic unit2015

02016 (FY)
Target2015 2016
Target(FY)*4 According to the Guide for Calculating Greenhouse Gas
Emissions, published by the Japan Rubber Manufacturers
Association. The electricity emission factor is the valueannounced by the electricity companies in 2004.

Employee Voices

First Solar Generating System at Overseas Base,at Zhongshan Factory in China
In fiscal 2015, the Zhongshan Factory in China introduced solar power generation system atfirst our overseas bases. A total of 800 solar modules (maximum output: 200 kW) areinstalled on the roof of the plant—these are expected to generate 200,000 kWh per year. Thispower is used within the factory, and surplus power is sold to the grid.
The Zhongshan Factory was certified
by China's Development and Reform
Commission as a renewable energy power
plant in November 2014, and installed
solar power generation system at the endof June 2015. This started full-scale operation at the end of August that year.
Renewable solar power is becoming
increasingly widespread around theworld, and we contribute to spreading
natural energy and reducing loads on the
Installed solar power generation system
environment.

CO2 Reduction Activities
in Distribution Processes

CO2 Emissions (5 Factories Operated by
Domestic Affiliates)

579

400

trees/year Achieved

At overseas production bases,
targets for CO2 emissions quantities andbasic units of energy usage (crude-oil
equivalent) were not met, but our domestic affiliates achieved their goals.

508

245

Achieved

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

4.00

171

(1,000 kL)

Energy Usage (Crude Oil Equivalent)(5 Factories Operated by Domestic Affiliates)

T o p i c s

21,66020,000• Take action to protect(t-CO2e/t)

1690resource-free tire

(Kt-CO2e)

1.8

Achieved• Release a 100% fossil

CO2 Emissions (10 Overseas Factories)

265

Achieved

172

0.638

2000

CO2 Emissions (6 Factories in Japan)

300 293 302

Continue withcomplete zero

to landfill at production
bases in Japan and overseas.

In fiscal 2015, we introduced various
initiatives, including biomass and solar
power generation so that we canreduce CO2 emissions from production
processes. These efforts have resulted
in CO2 emissions at our six factories in

800

On sale in fiscal 2014

zero emissions for waste

Buildinga RecyclingOriented Society

2.4

174
170

• Achieved complete

Japan resulted in totaling 249,000
tons-CO2, down 13,000 tons-CO2 fromthe previous year. CO2 emissions quantities increased 2.8% over the previous year, and basic unit of energy usage(crude-oil equivalent) increased 3.1%
against the previous year. This was
because of the large impact of decreased
production decrease.

(t-CO2e/t)

53.9% Achieved(kL/t)

0.65

180

150

Creating a Low-Carbon Society

400

Fiscal 2015

lower rolling resistance.

*Details are on pages 25-26(Kt-CO2e)55%• Release tire with 50%

PromotingHarmonious
Coexistence with
NatureCO2 Reduction Activities
in Production(1,000 kL)• Reduce CO2 emissions basic
unit to less thanof 1990 levels

Energy Usage (Crude Oil Equivalent)(10 Overseas Factories)

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

Sumitomo Rubber Industries Eco-First Commitments

In fiscal 2015, we worked at moving tolarger vehicles, and improving transportation efficiency. These initiatives resulted in a drop in CO 2 emissions fromtransporting tires to 33,200 tons-CO2,
down 7.5% over the previous year. The
influence of lowered production madebasic unit increase by 0.6%.
The modal shift ratio to railroads
and ferries is 16.7%, up 1.3 points overthe previous year. By decrease ofimported tires and increase usage ofultra-large vehicles (1.5 times that oflarge vehicles), our large-vehicle transport ratio was 20.8%, down 3.1 points

Working to Reduce Electricity Usage—98% of All Energy Used

Koji Kawaguchi
Dunlop Golf Club Corporation
Production Technology Department, Engineering Groupover the previous year.
In fiscal 2016, we will continue
undertaking improvements, including
optimization of production locations
and improving transportation efficiency.

CO2 Emissions in Logistics (Domestic)(Kt-CO2e)

0.05

60

(t-CO2e/t)

0.04

50
40

Electricity occupies 98% of energy consumption
at Dunlop Golf Club Corporation, and saving
electricity is an important issue.
Since fiscal 2013, we have been transitioning over to LED lighting, and as of 2015, 90%
has completed. We are shifting compressors to
invertor type ones and introducing several energy
saving devices.
We raise employee’s awareness of energy
savings through energy-saving committee. We
cannot achieve our goals if they are not interested
in energy saving even if we introduce new ones.
All of us is trying to reach targets by such as
turning off unnecessary lighting or keeping
temperature setting of air conditioner

0.038434.1

0.038834.3

0.03950.0388

34.6

35.9

30

0.0390
33.2

0.03
0.02
0

0
2011
Total

2012

2013

2014

2015

(FY)

Basic unit

SUMITOMO RUBBER GROUP CSR REPORT 2016

28

E

CSR Activity ReportcologyEc o l o g i c a l

Reducing the Environmental Impactof Our Business Activities

p ro c e s s

Building a Recycling-Oriented Society
Items marked with a “ ” are verified by third parties. Verified data does not include “intensity” figures.
Verification covers: Waste generated in fiscal 2011 and 2012, and waste discharged (excluding valuables) in fiscal 2013 and 2015.

Continue to Achieve Complete
Zero Waste Disposal
Sumitomo Rubber Group is working to
reduce, reuse and recycle wastes inorder to build a recycling-oriented society.
Complete zero waste disposal isdefined as recycling in order to use all
waste, with 100% recycling and nowaste sent directly to landfills. We
achieved complete zero waste disposal
at our primary production sites in Japanand overseas in March 2010. Currently,
we are aiming to systematically achieve
this at new sites, and ensure this continues at existing sites.
Material recycling rate was 81%
in fiscal 2015 against 85% (target),and it was largely unchanged from theprevious year.

Reducing Waste Discharged*
From fiscal 2013, though we have also
been working to reduce amount ofwaste discharged as making metals covered with rubber valuables. In fiscal
2015, this increased 8.3 points at our
six factories in Japan.
This was up 6.7 points at the 10
Amount of Waste Discharged(Excluding Valuables) (6 Factories in Japan)
(t/t)

(Kt)

0.040

20.00

0.032

0.024 0.026 0.025

10.00 9.39

(%)

100

50.0
40.0

100

100

100

100

100

33.5

33.9

34.5

36.0

36.6

80

0.022

0

Material Recycling Rate (6 Factories in Japan)
(%)

60

80

82

82

81

10.52

5.98

0.010

2012

2013

2014

2015

Basic unit

Akmal M Kartajaya

2016
Target(FY)

Wastewater treatment facilities, Turkey Factory(t/unit)

(t)

705

0.102

0.097

0.103

774

724

806

0.113 0.111 0.120

894

0.080

845
0.040

Rainwater tank (Indonesia Factory)

20

0.000

0
2011

0
2011

2012

2013

2014

2015

(FY)

SUMITOMO RUBBER GROUP CSR REPORT 2016

78.5%

Note: Includes temporary employees (As of December 312015).

Environmental AwarenessImprovement Activities at
Factories
Sumitomo Rubber Group implements
specialized education about environment to let our employee get interested
in or participate in environmental con-Completed Installation of Rainwater
Treatment Facilities Helping toReduce Water Use

0.020

500

40

29

8.89

1,000

81

26,062
persons

Raising employee awareness at an exhibition about
energy saving activities (Changshu Factory, China)

0.030

Amount of Waste Discharged(Excluding Valuables)(5 Factories Operated by Domestic Affiliates)
0.101

80

(FY)

Employee Voices

Employees
at ISO 14001
Certified Sites as
Percentage of
All Employees

0.032 0.033
15.67

1,500

100

2016
Target

0.000

Total

(FY)

0.030

0.024
8.77

2011

Recycle Rate

2015

Basic unit

0.033
15.00

0.00

Total

2014

Against global water crisis, the Sumitomo Group has set recycling 100% of
wastewater in production by 2050 asa target. In our medium-term plan, we
have a target of 100% recycling ofwastewater at two of our factories, andin 2016 we will start test operation inorder to establish recycling technology
at our Turkey Factory.
We also intend to reduce water
usage through effective use of rainwater, measures that are already in place at
our Zhongshan Factory in China. From
2016, we plan to use rainwater as processing water at the Indonesia Factory,
in cooling equipment.

Employees at ISO 14001 Certified Sites as
Percentage of All Employees

servation activities.
They has held exhibitions and contests about environment as well as
collected posters, slogans or suggestions
and given awards at overseas bases.
One new initiative was that“energy saving declarations” employees
made at the Nagoya Factory are displayed
to increase their awareness.
We will keep these activities andcreate new ones.

(t/t)

20

2015

2013

Reductions in Water Usage

To implement global environmental
management, in December 2010, theSumitomo Rubber Group obtained ISO
14001 Global Integrated Certification
for its 30 bases in Japan and overseas.
This enables us to carry out unified
environmental management at global
production and development bases.
No new bases acquired certification in fiscal 2015, but this is planned
for the Turkey Factory is going to in fiscal

2016. Additionally, we plan to transition
to the new standards in the 2015 edition
throughout the group as a whole.

0.040

10.0

2014

2012

(Kt)

5.00 5.07

2013

6.98

20.00

40

2012

7.13

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

ISO 14001 Global Integrated
Certification

Global Environmental Management Central Committee

Amount of Waste Discharged(Excluding Valuables) (10 Overseas Factories)

20.0

2011

7.19

0.000

10.00

0.0

0.020

9.33

0.00

60

30.0

0.030

0.010

Total

(Kt)

8.92

5.00

2011

Amount of Waste Generated and Recycle Rate
(6 Factories in Japan)

0.032 0.033

15.00

factories overseas, and 9.7% at the fivefactories operated by affiliates in Japan.

Implementing Global
Environmental Management

Total

2012

2013

Basic unit

2014

2015

2016
Target(FY)

Assistant Manager, Engineering Department
P.T. Sumi Rubber Indonesia

At the Indonesia Factory, which frequently
experiences rainy weather, we employ rainwater forindustrial use. In an environment where predicting
rainfalls is extremely difficult, we have put in placeequipment for treating rainwater. The task was
arduous, but now that it is complete, I look on backon it with pride.
The system, which employs sand and carbon
filters, is aimed at using rainwater as an alternativefor other industrial water. Our goal is to reduce theuse of industrial water at the Number 2 Golf Ball
Factory by 10%. Thereafter, we plan to reduce theamount of water used to manufacture tires at ourtire plant.

Managing
Environmental Loads
Reducing Organic Solvents
Sumitomo Rubber Group is making voluntary efforts to reduce the emissions of VOC(volatile organic compounds) emissions,and fiscal 2015 improvements to production processes succeeded in an 11% drop
over the previous year. This represents
an 81% drop over fiscal 2000 levels.
Continuing into fiscal 2016, we willcontinue to optimize how to use VOC,
and reduce quantities.

VOC Emissions and Basic Unit
(Six factories in Japan)
(kg)

(t)

2,000

8.00

8.20
1,917

1,500

6.00

1,000

4.00

928
674

500

3.16

0
2000

2011

Total emissions

2012

2.00

402

406

363

1.41

1.38

1.34 0.00

2013

2014

2015

2.38

(FY)

Basic unit

Note: VOC emissions using calculation methods from Japan
Rubber Manufacturers Association.

SUMITOMO RUBBER GROUP CSR REPORT 2016

30

Next

CSR Activity Report

Next-Generation ProductDevelopment

Next-generation product development
For its quality improvement efforts,
the Indonesia Factory has since 2008 been
continuously awarded at the Toyota Kaizen Festival

Management Approach
Underpinning the activities of The Sumitomo
Rubber Group is the theme “tires can contributeto the global environment.” To this end, it isdeveloping eco-friendly products with a focus on
three things—fuel efficiency, raw materials, andresource savings.
Sumitomo Rubber Industries’ Tire Division
has established its own environmental standards.
As well as improving tire performance, it is developing the usage of fossil resource-free materials,
materials to improve fuel economy, and runflat
tires that eliminate the requirement for cars tocarry spare tires, creating products that protect
the global environmental and conserve resources.

Environmentally Friendly ProductDevelopment Themes

Tires can Contribute to the Global Environment
Fuel efficiency(lower rolling resistance)
Fossilresource-freematerials

MakingReduce(weight-savings,
wear resistance)

Raw materials

Resource
savings

Recycle & reuse(ease of retreading)

Using

Fuel efficiency

Safety and comfort(grip, braking,and quiet)

Discarding

Developing
Environmentally Friendly Products
Developing Fuel Efficient Tires
Given that over 80% of CO2 emissions
throughout a tire’s life cycle is emitted
during usage, we are working to develop environmentally-friendly products
developed with fuel economy as a central tenet.
The ENERSAVE SP688 Ace all-season tire released in March 2016 uses
the ultrapure natural rubber “UNPR,”
developed using our own 4D NANO
DESIGN materials development technology, together with our new carbon coupling agent that better bonds polymers
and carbon. This features high wear
resistance, and rolling resistance has
been reduced by 37% over our standard model.

Rolling
resistance37%

decrease*Compared to standard
Sumitomo model SP670

31

SUMITOMO RUBBER GROUP CSR REPORT 2016

Household-Use
Natural Rubber Gloves“Gloves born from trees”
Dunlop Home Products Ltd. produces“Gloves born from trees”—household-use natural rubber gloves that
release almost no toxic gases whenburned, and that are made out of
eco-friendly natural rubber. As well as
the low-allergen “Rich-ne,” there is also
the standard “Good-ne” and the “Pretty-ne” made to fit women’s hands, andthe “Sarasararin” extra-comfortable
gloves that feature a nylon weave on
the rear. These were added to ourline-up in March 2015.
The Pretty-ne gloves for women

In Pursuit of Safety and Comfort,
Economy, and Quality

combine style andfunctionality, andreceived a Good
Design Award in
fiscal 2015.

Quality Management System
The Sumitomo Rubber Group’s quality
management system is certified for
ISO/TS 16949*1, an international standard covering automotive parts andservice parts.
We are actively putting together
quality management systems overseas, with the Brazil Factory receiving
accreditation in ISO/TS 16949 in February 2015, and the Turkey Factory
receiving accreditation in ISO 9001 in
October 2015.
*1 ISO/TS 16949: A quality management system basedon ISO 9001, but tailored to the demands ofthe automotive industry.

Employee Voices

Development of Runflat
Tires for Safer Driving
Sumitomo Rubber Industries is continuing to work to develop runflat
tires that can still be used at a specified speed for a certain distance*2, inorder to improve safety even during apuncture while driving, and to makethese tires more widespread.
In fiscal 2015, we started European sales of the new ZIEX ZE914
Ecorun Runflat and the EUROWINTER
HS449 RUNFLAT.
*2 Requirement that a runflat tire can go a distance of
80 kilometers at a speed of 80 km/h.

T o p i c s

Increased Safety, Lower Resource and Energy Usage
New Technology Development
The GYROBLADE airless tire technology and the CORESEAL sealant technology bothincrease safety while driving, and by removing the need for a spare tire, help lighten thevehicle and save on resources.

Establishing Airless Tire Technology
Starting from Zero
“Sarasararin—gloves
born from trees”“Pretty-ne” earning
the Good Design AwardT o p i c s

Praise for ENASAVE 100, 100% Fossil Resource-Free Tire
The concept behind the ENASAVE 100 released in November 2013 has beenhighly commended, and this tire is still receiving awards two years later in 2015.
● 2014 Energy Conservation Prizes, awarded Agency for Natural Resources and Energy Director-General’s award● 24th Global Environmental Awards, awarded Keidanren
Chairman’s Prize● 6th Monodzukuri Nippon Grand Awards, awarded
Excellence Award● Tire Technology Expo 2014, Environmental Achievement of the Year

Makoto Sugiya
Manager, Advanced Technology Development
Department, Tire Technical HQ

When we started development of airless tires, notonly was there no such thing as “airless tire technology,” the resin, tread structure, spoke, andmetal wheel technologies required to make thesetires didn’ t exist either. Accordingly, instead ofworking just on our own, we reached out toother companies that might potentially have aninterest, building relationships, and bringing
together materials and design methods. These
efforts eventually paid off by us bringing thistechnology to maturity, and announcing it at the2015 Tokyo Motor Show.
We are now setting our sights on commercialization, so that everyone can enjoy the benefits provided by this technology.

GYROBLADE consists of a tire tread affixed
to the circumference of atire body that is composedof a metallic wheel
surrounded by special resin spokes, meaning that thetire does not need to be filled with air. Tires using
this technology are immune to flats and can be usedwithout worrying about maintaining optimal airpressure.
A sealant with highadhesiveness and viscosity
designed to be applied to
the lining of a tire tread,
CORESEAL prevents airleakage from a tire when
the tread is punctured through its entire thickness.

Tread
Specialresin spokes
Metallic
wheel

Sealant

Both GYROBLADE and CORESEAL technologies facilitate resource conservation,weight reduction and greater freedom in vehicle design by eliminating the need for sparetires, and we are working to bring these products to market.

SUMITOMO RUBBER GROUP CSR REPORT 201632

Kindness
CSR Activity Report

K i n d n e s st oKindness to Employeese m p l oye e s

T o p i c sManagement Approach

Sumitomo Rubber Group’s Basic Hiring Policy

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

Diverse employment
environment and humanresource development

Environment conducive
to rewarding work

Fair evaluationand equal benefits

South Africa Factory and U.S. Factory Participate in
the Skill Olympics for the First Time
The Skill Olympics got its start in October 2009 as a way to pass on technical skills toyoung employees and boost their motivation. June 2016 marked the 14th time these Olympics have been held. Once every six months, young employees chosen from each of ourfactories in Japan and overseas compete to apply their technical skills in production
processes. Gold, silver and bronze medals are awarded based on the number of points
judges award them in such areas as safety, productivity, workmanship and knowledge.
The South Africa Factory participated for the first time in fiscal 2015, as did the U.S.
Factory in June 2016. Following the awards ceremony, participants took part in a technicalskills networking event. Through these activities, we aim to help works take home and passon the technical skills they have learned at sites overseas.

Fostering Human Resources
and Making Work Rewarding
Entrenching “The SRI Way”

Manufacturing Education

We have formulated “The SRI Way” as
the backbone for putting the Groupphilosophy into practice.
“The SRI Way” provides a framework for employee behaviors and decisions based on shared values and perspectives, as well as for ways of going
about their work.

In the Production Training Department, wehold courses on themes such as passing
down skills and the philosophy of manufacturing, and responding to business globalization. Our goal is to ensure that all worldwide
employees get a consistent, standardized
education on our company’s manufacturing.
In fiscal 2015, we increased the numberof opportunities to provide re-education on
problem-solving techniques, centering onsupervisors. The workplace heads for production processes and equipment maintenance at
our factories also gathered to compare anddiscuss current conditions and set annual
targets. This competitive approach toward
training that addresses workplace problems
made our education and training more realistic.
At our Shirakawa Training Center, a
total of 1,869 employees underwent
training in fiscal 2015.
In 1964, founding President Inoue introduced “technology inspections” to drill engineersand foster process improvements. In these
inspections, team activities different from workers’ usual businesses encouraged an understanding of the importance of the “actual place andthe actual thing” and how to solve problems.
These inspections had been held 339 times as ofMarch 31, 2015, with 1,494 people attending.
We are rolling out this activity overseas, as well,and connecting it with education for local leaders.

Fostering Human Resources
The Sumitomo Rubber Group provides all
employees with well-rounded personal training through the Human Resources Department, Production Training Department, andrelated divisions. Young employees get
fundamental training in theory, and management level employees get practical training in
how to maximize organizational strengthand energize their organizations. Such training helps individuals by respecting their motivation to grow and helping them learn tonotice and improve situations on their own.
At our overseas affiliates, we aredeveloping human resources by conducting OJT and other training in the aims ofboosting problem-solving skills, understanding Sumitomo Rubber management
philosophy, and understanding an implementing the SRI Way.

33

SUMITOMO RUBBER GROUP CSR REPORT 2016

Employee Voices

Twelfth technical skills competition in the finish
inspection category (Visual inspection by young
employees at the South Africa Factory)

Conducting Employee
Questionnaires

Aiming to Be a Company Where
People Work Confidently in English

Jeremy Diamond (left)
Jesse Gruber (center)
James Lomas (right)
Human Resource Development Department

The road to mastering a language is long and arduous. In order to give our employees a solid foundation to continue on that path, we offer an intensive
six-month course called “English Special Education”
twice a year.
The course is designed to give students agrounding in the basics for their future studies while
also equipping them with the skills that they need to
do their jobs in English. We also offer short-termcourses in email and telephone English as well as
regular English conversation classes in order to
respond to the diverse needs of our employees.
We will continue to provide employees with fun
and useful English education with the aim of creating
a company in which everyone who needs to use
English on the job can do so with confidence.

We conduct employee questionnaires once
every two years. The fifth such questionnaire, in fiscal 2014, demonstrated highlevels of satisfaction with the Company
and its future promise, as in previous years.
As some questionnaire responses
offered opinions about improvementsthat could be made to working styles,
in fiscal 2015 we undertook companywide approaches in such areas aspromoting increases in working efficiency in order to reduce overtime
working hours and on efforts to accumulate and pass on knowledge.
We will conduct an employeequestionnaire again in fiscal 2016,
and aim to again connect such opportunities with initiatives for creating afriendlier working environment.

Love Your Work Project
In fiscal 2017, we launched the “LoveYour Work” project to provide numerous employees with opportunities toshare things they had notices, as wellas their ideas and experiences.
Executives and Group employees
participate in the special employee
discussion, a project activity that encourages individual employees to reflect
on their own work, reinforce teamwork, motivation and creativity, andhelps to invigorate the entire Group.
This year will mark the 10th
anniversary of the Love Your Workproject. Leading up to these event, we
will continue with groupwide activities
themed on “kindness to others andturning dreams into reality.”Awards ceremony for the 12th competition(June 2015)

and exchange opinions. At informal
roundtable meetings with the President,
between 10 and 20 young employees
and female employees gather to focus
on select themes as they freely discuss arange of topics off the record including
work-related advice, the President’s
philosophy of life, family, and hobbies.
These dialogues were held ninetimes in fiscal 2015 and attended by 144
people. They led to a frank exchange of
opinions on themes such as what isneeded to promote an environment thatmakes work stimulating and enjoyable.
We plan to provide employees at all
job levels and in all company divisions
opportunities to exchange views with
the President and among themselves.

Special employee discussions focused on knowing
and passing on history and traditions

Workplace tour for viewing workplaces andmaking use of knowledge at work

Special employee discussion
between the production andsales divisions

Dialogue Between
Managers and Employees
The Sumitomo Rubber Group provides
periodic opportunities for frontline managers and employees to share concerns
SUMITOMO RUBBER GROUP CSR REPORT 201634

Kindness
CSR Activity Report

K i n d n e s st oKindness to Employeese m p l oye e sCreating a Safe, Employee-Friendly Workplace
Striving to Eliminate
All Disasters
With the aim of ridding the workplace ofall dangers and accidents, the Sumitomo
Rubber Group carries out safety activities
that eliminate the causes of accidents andintrinsically raise the level of safety. We
also practice direct confirmation exhaustive safety inspections and visual checks.
We worked to thoroughly instill the rulethat disasters from the past may never be
repeated and promote equipment safety measures. In addition, we conducted hands-on
activities at all business sites to make everyonein the entire Group aware of three principles
for fostering safety-aware employees: abide byrules, make the workplace safer, and havemanagers and supervisors fulfill their responsibilities. Despite these efforts, there were 66
accidents in fiscal 2015, 14 more than in theprevious year. Accidents increased at both overseas and domestic factories, due to carelessness and a lack of sensitivity to danger, and one
accident at an overseas company led to fatality.
Going forward, we will address points
that commonly lead to accidents, such as
momentary stops and ensuring safety during
infrequent operations. We will also encourage individual employees in gaining
self-knowledge and awareness of their
behavioral characteristics related to safety.
Through these efforts, we strive to create aworkplace and culture that protects the safetyof all people and aim for zero accidents.
Frequency of Occupational Accidents(disabling injury frequency rate*)
2.00

1.62

1.59

1.58

1.05

1.00

0.94

0.15

0.15

0.15

2011

2012

1.66

1.61

1.06

1.06

Education and Awareness
Activities Boost Occupational
Safety and Health
Since the Sumitomo Rubber Group
believes that fostering safety-aware
human resources is the key to eliminating
all workplace accidents, we hold periodic
education and awareness-raising activities
on occupational safety and health. These
activities are given for each job description
and are followed up in order to ensurethat employees are effectively acquiring
the skills and knowledge being taught.
In fiscal 2015, 61,400 employees
participated in our regular occupationalsafety and health training. This training concentrates on encouraging people to follow
safety rules in all circumstances and emphasizes promoting a workplace culture that
protects employees. To heighten employee
sensitivity to danger, we conducted experiential safety training to demonstrate just
how frightening an accident at machinery
being operated every day can be. A total of
54,500 people took part in this training
during the year. This course is also open to
local companies and schools, and we havewelcomed 2,450 participants so far.
In fiscal 2016, we will continue striving
to create a workplace environment andculture that protects the safety of all employees. We will help all employees understandthe safety-related behavioral characteristics
necessary to avoid accidents and enhance
training in which employees take the initiative on safety by stating what sort of safety
actions they must take in their jobs.

Preventing Lifestyle-RelatedDiseases

Helping Employees Balance
Work and Family Life

Aiming for zero workplace illnesses, weconsistently follow up on regular healthchecks, respond steadily on mental healthand are introducing anti-smoking measures.
Through collaboration between Sumitomo Rubber Industries and a health insurance association, we are increasing our rateof specific health guidance: from 12.5% in
fiscal 2013 to 22.3% in fiscal 2014 and an
expected 25% in fiscal 2015. However, thenumber of people with metabolic healthissues is rising. To raise awareness, we sendmaterials on lifestyle improvements topeople in their 30s in the preliminary stagesof metabolic diseases. We have also introduced a mobile service to increase thepercentage of workers’ dependents who
undergo specific health checks.
Because of the dangers of smoking,we have set a goal of making all company
buildings no-smoking and reducing theemployee smoking rate by half by 2020. In
fiscal 2015, we sought to eliminate harmful
passive smoke and make it more difficultfor employees to smoke by moving designated areas to outdoor locations, and madethree factories entirely no-smoking zones.
On May 31, our companywide no-smoking
day, we conduct activities to increase theranks of non-smokers. These efforts include
making smoking entirely off limits at all
Sumitomo Rubber premises, holding
no-smoking seminars, conduct symposia
with people who have successfully given
up smoking and introducing outpatient
treatment for smoking cessation.

Sumitomo Rubber Industries has introduced work systems and awarenessactivities that make it easier for employees to carry out childcare and nursing
care; for example, we are reducing theamount of after-hours work employees
do, and we are encouraging employees
to take their paid leave. The result of
these and other efforts has been that all
employees who give birth take childcare
leave. As well, we are doing everything
possible to encourage male employees
to take childcare leave, and in the past
five years 10 male employees havedone so. In fiscal 2009, we became the

1.50
1.00
0.50

0.28
0.07

0.00
Overall Industry

2013

2014

2015

(FY)

Manufacturing Industry

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

35

SUMITOMO RUBBER GROUP CSR REPORT 2016

Accident simulation training(Shirakawa Factory: Accident simulation training
on getting tangled in a drive chain)

Work-Life Balance

Employee Voices

Further Efforts to Create a Workplace
Where Diverse Employees Can Be
Successful

Akiko Masuda
Manager, Legal Department

The Company has a variety of systems in place
to support a balance between work and homelife. In addition to women, I think thesesystems help support the success of employees
from diverse backgrounds.
As globalization progresses, I think theimportant of ensuring diversity will grow.
Rather than resting on our laurels, we need tomake our workplaces even more employee-friendly places where individual employees
can maximize their skills. I would like to see us
make steady strides in this direction.

first company in the tire industry to becertified for the Kurumin logo, presented by the Japanese government to companies that strive to help employees
raise their children. We were once again
certified in fiscal 2015.
In fiscal 2014, we introduced the
JOB Return system aimed to get employees who have left the company toreturn to work. Under this system, employees who had to quit due to reasons

like marriage ortheir spouse’s
job transfer canreturn to work
as full-time employees.

Kurumin certification
as a company that
supports child-rearing

Promoting Diversity
Promoting More Active
Roles for Women
To promote more active roles for
women, the Company has set the targetof doubling its number of women in
management positions by 2020, compared with the 2014 level. To achieve
this goal, we will need to maintain our
hiring ratio of female employees andincrease initiatives that raise the percentage of people who take paid leave sothey can return to work refreshed.
In fiscal 2015, we will introduce a
daycare support system for financial
assistance to parents who are leaving
their child of younger than 2 years old ata daycare facility. The aim is to help theseparents return to their job at a Sumitomo Rubber base as soon as possible
after they take maternity leave or childcare leave. This will help women who areaiming for a career at Sumitomo Rubber.

Respect for Human Rights
Basic Perspective on
Consideration for
Human Rights
The Group’s Corporate Code of Conduct states that that we “maintain asound working environment free fromdiscrimination on the basis of belief,
creed, religion, race, skin color, nationality, language, social background,gender, age, physical handicap orother reason.” Accordingly, we strive
to ensure against the infringement of
human rights of any employee.
In fiscal 2015, the Company’s
in-house counsel conducted training on

the prevention of power harassment for
managers at locations in Japan and overseas. We also created a new handbook
on human resources and occupational
management that we distributed to all
managers. We also held training sessions
to ensure awareness of the handbook’s
content as part of our efforts to create aworkplace free of human rights infringements and harassment, where employees can work enthusiastically.
The total time spent on management training and sessions related tohuman rights was 1,680 hours (calculated as hours in training times thenumber of participants).

Outdoor smoking area (Kobe Head Office)

SUMITOMO RUBBER GROUP CSR REPORT 201636

I

CSR Activity Reportntegrity

In t e g r i t y

f o r

Integrity for Stakeholderss t a k e h o l d e r s

Governance From an External Director’s Perspective

Verification and Advice on Management Decisions, Focusing on the “People”
Who Support the Foundation of Corporate GovernanceManagement Approach
The Sumitomo Rubber Group must fulfill its
responsibilities, understand what is expectedof it, and reflect these in its business activities.
To this end, regular communication with our
stakeholders is indispensable.
As we globalize our business, we welcome
a diverse range of new stakeholders aroundthe world. We strive to demonstrate integrityin all our business activities so that we canearn the trust of all our stakeholders.

Sumitomo Rubber Group Stakeholders

Customers

Sumitomo
RubberGroup

Local community

Suppliers

Shareholders,
Investors

Employees

Enhancing Thorough Corporate Governancetioned as an important management
issue. Thus, the Group aims to improve
fairness and transparency, strengthen relationships of trust with society and ensurecomprehensive management efficiency
through initiatives aimed at addressing
management issues.
Sumitomo Rubber Industries has
adopted a corporate system with a Board
of Auditors. In an effort to strengthen
corporate governance, since 2015 wehave operated a Nomination and Compensation Committee comprised of a

Corporate Governance
Philosophy
Based on The Sumitomo Business Spirit
and the Corporate Philosophy, the Sumitomo Rubber Group makes it a basic
company policy to continue to enhance
its corporate value as a promising andreliable global company for the benefit of
all stakeholders, continuously creating
new value to ensure living that is comfortable and attractive. Based on this policy,
thorough corporate governance is posiCorporate Governance Structure

General Meeting of Shareholders
ReportAppointment/Dismissal

Business Audit

Board of Auditors (Corporate Auditors)

Nomination andCompensation Report
Committee

Appointment/
Supervision

ReportReportBusiness
Audit

Consultation

Appointment/
Dismissal

Appointment/Dismissal

Cooperation

Internal Control
Auditors

Business Execution
ReportPresidentInternal
Audit

Management Committee
Report

Audit

Audit Department

Executive Officers

Accounting Audit

AdviceCooperation

Cooperation

Legal ComplianceReinforcement ofCorporate Ethics

Corporate Ethics Committee

37

SUMITOMO RUBBER GROUP CSR REPORT 2016

Cooperation

Corporate Attorney

Each Business Operation Division
Compliance Counseling Room(Corporate Ethics Helpline)

Independent Auditors

Board of Directors (Directors)
ProposalReportmajority of external directors with an
external director as the chairman, which
operates as an advisory body to the Boardof Directors in an attempt to improve
objectivity and transparency in procedures
related to the nomination of directors andother activities.

Risk Management Philosophy
The Sumitomo Rubber Group defines risk
within risk management as a “factor that
may interfere with or exert a negative
effect on the smooth execution of business activities or the achievement of management objectives/strategies based on
the Group’s management philosophy.”
We determine the relative importance of risks by taking into account not
only financial impact but also whether we(1) ensure quality and safety, (2) maintaina good relationship with stakeholders, (3)comply with laws and regulations, andmaintain corporate ethics, and (4) abideby the Sumitomo Business Spirit, Group
Philosophy, and Group Code of Conduct.
In fiscal 2015, the latest critical risks
were shared at the management level
through a reanalysis of Groupwide risks,
including those at overseas bases. In fiscal
2016, we will enhance activities andengage in Groupwide countermeasures
to mitigate these shared critical risks.

Corporate governance addresses thepeople who operate systems rather thansystems themselves. Moreover, it is critical for ensuring harmony and discipline
are diffused throughout the entire organization. To this point, based on the
Sumitomo Rubber Group’s long-term
vision of pursuing greater happiness forall employees, in addition to the president and others on the operations side
who maintain harmony, I feel intergenerational cooperation is going extremely
well. During factory inspections, seeing
employees working energetically onsite
gives me the sense that harmony anddiscipline permeate every corner of theorganization.
External directors actually comprise avariety of members, and we are proud tohave achieved perfect harmony among
ourselves. Furthermore, in 2016 theNominating and Compensation Committee was established and I was appointed
chairman. I verify that human resources
or compensation practices are soundfrom the shareholder’s perspective andmake the most of my experience being
involved with many companies and organizations as a lawyer to provide advice
helpful for management decisions.

Keizo Kosaka
External Director

Enhancing Thorough CompliancePreventing Wrongful Conduct
We drive home to our employees theimportance of avoiding all wrongfulconduct through our Corporate Codeof Conduct, which includes rules toforbid private monopolies, unfair competition, and business dealings; forbid
bribery; and insulate ourselves fromanti-social forces, etc.
In fiscal 2015, we focused efforts
on establishing a system enabling
voluntary compliance activities at overseas bases through the establishment
and operation of Compliance Committees at each base.
Moreover, to prevent complianceinfractions, we compile examples of close
calls pertaining to compliance that occurred
during business operations in a “Compliance Close Call Case Studies Collection”
distributed to managerial employees.

Going forward, we will continue
efforts aimed at improving complianceawareness.

Compliance Education
Compliance issues are part of everything from new employee orientation
to training programs for all employee
levels so that we can raise awareness of
the importance of compliance among
our employees.
In addition, in fiscal 2015 we held
training for managers on a number of
topics, including a lecture (approximately 150 participants) on power harassment and sexual harassment prevention, and briefings on legal issues suchas contracts and Japan’s Subcontract
Act. Briefings on a range of topics werealso held at Sumitomo Group companies around the world.
Compliance education was also
held for individual employee groups,
such as newly hired university graduates, mid-career-hired employees, andSumitomo Group company managers
at overseas affiliates.

Compliance lecture

Information Security
The Sumitomo Rubber Group fully
understands the importance of protecting and managing personal and confidential corporate information andmakes an effort to appropriately handleboth.
In fiscal 2015, as a measure to protect against information leaks due tocyber-attacks, a scenario was conducted
whereby suspicious emails from outside
the Company were sent to employees
as a “targeted attack email” to inculcate knowledge through drills aimed atensuring suspicious emails are notopened.
We will continue to enhance information security in both theory andpractice.

Compliance Close Call Case Studies Collection

SUMITOMO RUBBER GROUP CSR REPORT 201638

I

CSR Activity Reportntegrity

In t e g r i t y

f o r

Integrity for Stakeholders
Signing ceremony with Miyakonojo City
(Left: Takahiro Ikeda, Mayor;
right: Miyazaki Factory and Iwata Factory Foremen)s t a k e h o l d e r s

Promoting Dialogue with Stakeholders
Satisfying Products andServices for Customers

Tire Business:
Boosting Customer
Service Skills
The National Customer Service Skills Contest held at Company stores to improvecustomer service was held for the tenthyear in a row in fiscal 2015. This year’scontest focused on the degree to which
contestants were able to easily explaintires to customers using “Tire Concierge,”
an iPad customer service application

incorporating images, video and simulations currently in its second year of usage.
As a result, in an unusually close competition, Kei Morita of DUNLOP TYRE
SHIKOKU Co., Ltd., Tire Select Imabari
and Risa Kato of DUNLOP TYRE CHUO
Co., Ltd., Tire Select Setagaya Yoga
shared the first prize. Both contestants
demonstrated solid “Tire Concierge”
skills, using the iPad as if it were an extension of their bodies to provide excellent
customer service on a daily basis.

Sports Business:
Customer Support
In response to customer feedback,
Dunlop Sports Co., Ltd., established theCustomer Service Office and After Service
Centers. Also, information received is
rapidly deployed for use in product development and quality improvements aimed
at customer satisfaction.
In fiscal 2015, XXIO 9, a new modelof XXIO brand golf clubs, a core productsold since 2000, was launched in December. This resulted in a flood of inquiries
before and after the sales launch, indicating a strong interest among many golfers.

Industrial andOther Products Business:
Information Provision
National Customer Service Skills Contest winners(Above: Kei Morita, below: Risa Kato)

ucts for end consumers, established a
Customer Service Office that promptly
conveys valuable opinions and complaints received from customers to relevant departments and reflects them innew product development and service
improvements.
Dunlop Home Products Ltd., also
focuses efforts on providing information
online, updating its website and distributing product information on an ongoing basis using Twitter and Facebook
among other efforts to improve customer satisfaction.

Dialogues with Shareholders
and Investors
Sumitomo Rubber Industries places
importance on communications (IRactivities) with shareholders and investors, including information provided on
the Investor Relations section of ourcorporate website, briefings for analysts
and institutional investors and thetimely and accurate disclosure of information.
Furthermore, we focus efforts on
ongoing communications (SR activities)
with institutional investors in Japan andoverseas and attempt to achieve mutual
understanding and increase trust
through direct dialogues.

The Sumitomo Rubber Group aims topromote CSR procurement involving not
only quality, cost and delivery, but also
compliance, human rights and labor.
In fiscal 2014, we conducted CSR
questionnaires two times at approxi-

39

SUMITOMO RUBBER GROUP CSR REPORT 2016mately 1,100 supplier companies, theresults of which were announced at the13th Annual CSR Briefing held in sevenlocations across Japan in fiscal 2015,
where 166 supplier companies met andexchanged opinions. Those who participated at these briefings provided opinions
and asked questions pertaining to social
contribution activities, methods for pre-CSR FundIn fiscal 2009, Sumitomo Rubber Industries established a CSR fund for thefinancial support of groups working tosolve social problems in the regions
where we have business sites. With thefund, all donations from employees arematched by the company, and organizations receiving funding are selectedby our business sites and an NPO intermediary support center.
In fiscal 2015, the fund donated a
total of 6.94 million yen to 30 organizations in the six prefectures of Fukushima, Tokyo, Aichi, Osaka, Hyogo, andMiyazaki.

and concern for environmental and social
contributions and expand related activities.

Safe Driving Awareness
The Dunlop Tire Safety Project is aimed
at preventing tire-related accidents, andsince fiscal 2008, we have been conducting this project twice a year at
highway rest stops and commercial
facilities in all of Japan’s 47 prefectures.

CSR Commendations
Since fiscal 2009, the Sumitomo RubberGroup has presented CSR commendations to deepen employee understanding

Directors present CSR commendations to recipientsconcerns about damage in Miyazaki
Prefecture from a Nankai Troughmegathrust earthquake, inland city Miyakonojo will play a central role in logisticalsupport in the event of disaster. Thisagreement stipulates that, in the event of
a disaster, the Miyazaki Factory will cooperate with the city by making its grounds
and other factory facilities available anddispatching staff to engage in disasteremergency measures and support activities. This is the first agreement enteredinto by the city of Miyakonojo aimed atproviding this level of logistical support.
Going forward, we will proactively
engage in exchanges with nearby residents and collaborate with municipalities in the vicinity of this factory.
Stakeholder Voices

Tire inspection activities

Activities Closely Connectedwith Local Communities
The Sumitomo Rubber Group promotessocial contribution activities closely connected to local citizens living near ourfactories.
In March 2016, the Miyazaki Factory entered into an agreement with thecity of Miyakonojo related to the use of
facilities in the event of a disaster. Amid

Aiming for Further Cooperation
Between Corporations andCitizen’s Groups

Yoko Higuchi

Dunlop Home Products Ltd., a manufacturer of gloves and other daily prod-

Supply Chain Management
Engaging in CSR Procurement
Along with Suppliers

Ongoing Social Contribution

venting harassment and other topics,
enabling us to gain a deeper understanding of CSR along with suppliers.
In addition, we explained our
CSR action guidelines to new suppliers and conducted a CSR questionnaire self-assessment.

T o p i c sVice Chairman
Shirakawa Citizen Activity Support Center

Supporting the “Ueyama Shuraku
Community Mobility Project”
in Mimasaka, Okayama Prefecture

Since the first time in fiscal 2010, I have assistedwith recommendations on groups to receive
Sumitomo Rubber CSR Fund subsidies. The fundis operated under a matching-gift program inwhich both Sumitomo Rubber and employees
participate. Having an NPO provide the operator
with intermediary support recommending subsidy recipients is very innovative. At first, werecommended groups whose activities werelinked to the future and protected local residents
and the environment. However, since the Great
East Japan Earthquake, we have shifted the focus
to groups engaged in activities aimed at reconstruction assistance activities and children. Goingforward, we aim for further cooperation between
corporations and citizen’s groups and hope toengage in activities together.

The Ueyama Shuraku Community Mobility Project is an activity aimed at ensuring sustainable
lifestyles and economic viability by constructing adiverse mobility system eradicating transportation
Ultra-compact mobility
difficulties that have arisen due to depopulation
and aging in the Ueyama district (Mimasaki, Okayama Prefecture), a hilly and mountainous area with traditional terraced rice fields cultivated since the Nara Period. One aspect of
this project involves the introduction of ultra-compact electric vehicles, thus we support
these activities through the provision of our long-lasting, low fuel consumption ENASAVE
EC203 tires realizing a long life with excellent low fuel consumption performance.

SUMITOMO RUBBER GROUP CSR REPORT 201640

Stakeholder Dialogue

Malaysia Factory
Promote Regional Contribution Activities that take
into Account Local Culture and Customs

River Cleanups over the Past Four Years

Sumirubber Malaysia (Malaysia Factory), which mainly manufactures rubber gloves, is situated in Malaysia’s
Kedah State, near the World Heritage Site of Penang. Since starting operations in 1981, the company has beenworking to build a strong relationship with local communities, paying heed to local cultures and customs.
The Malaysia Factory is celebrating its 35th anniversary in 2016, and has held dialogues with local
administrations, local governments and schools about making local contributions.
Overview of the Malaysia Factory
Location
OpenedEmployee numbers
Main products

Sungai Petani City, Kedah, Malaysia
1981
602 (as of March 31 2016)
Rubber gloves,
tire puncture repair agents

Dialogue Participants
All stakeholders in the region
Kedah Forestry Agency
Rahman bin Jalil
Tengku Yuzaimi Idham
bin Tengku Zulkifli

Taman Sejahtera Kindergarten
Shukri bin Shaari
Najwah binti ZainudinSifah binti Zain

Sumirubber Malaysia
Yoshiaki Miyamoto,Company President

Sherine Lim, Sales Control
Kenta Ishii, Management Control
Kensuke Kaitani, Production Control
Ruzaimi bin Ramli, QC Department
Mohd Yazid bin Mohd Sarif,

Sungai Petani City
Taman Sejahtera Regional
Irrigation Department
Government
Shahriful Azhar bin
Umar bin Mohd Murad
HR Department
Mohd Hassan
Yasrah binti Rahman,
Yuzir bin Zainal Abidin
Mohd Amin bin Ahmad
HR Department
Sheikh Alaudin Sheikh Nordin
Bakar Arang High School Special Children School
Sumitomo Rubber Industries, Ltd.
Rashidah binti Ismail
Toshiaki Hojo, CSR Promotion Office
Mejar Chandra Sekharan
Roshidar binti Abdullah*Interpreter Shori Chika*

Local Water Resources Conservation
At Sumirubber Malaysia (below: Malaysia Factory), since 2013 we have been carrying out river cleanup activities
by throwing into the rivers mud balls that contain bacteria useful in improving water quality.
We asked everyone’s opinions and hopes regarding these activities.
Sungai Petani City Irrigation Department

Special Needs School

Thoughts from Mohd Amin bin Ahmad

Thoughts from Mejar Chandra SekharanThese river cleanup activities have proven very popular. Some schools andother organizations carry out similar activities, but so far, yours is the only
company that has participated.
I hope that if we can continue with these activities, we’ ll be allocated a section of the river, and I’d like to be put in charge of this.

While these are commendable activities, it is important to understandthat local residents could maybe think “strangers have arrived and arethrowing trash into the river.” You first need to make sure lots of people
are made aware of your activities, so I think that you should ensure that
this information is out there.
Cleaning up the rivers is important, but ensuring that the generalpublic knows what you’re doing should be paramount.

Taman Sejahtera Kindergarten

Thoughts from Najwah binti Zainudin
We are here as representatives of schools and kindergartens for Rohingya
refugees from Myanmar. If your company is going to take part in any
other activities such as this mud ball event, our schools and kindergartens
would definitely like to take part.

Bakar Arang High School

Thoughts from Roshidar binti Abdullah
So the mud balls contain enzymes, right? These are allowed tomature for around two weeks, and when they are thrown into theriver, they sink to the bottom, where these enzymes are dissolved
into the water, correct?
Before the mud balls were thrown in, the river water quality was
five, but now it is two or three—I think having more people take part inthese activities would be a good thing. People would learn a lot from this.

Malaysia
Sungai Petani City
Kedah State41

SUMITOMO RUBBER GROUP CSR REPORT 2016

SUMITOMO RUBBER GROUP CSR REPORT 2016

42

Stakeholder Dialogue

Malaysia Factory

Preservation of the Local Environment
Promote Forest Conservation at Factories and Environs
At the Malaysia Factory, in addition to greening activities within the premises, we are also expanding ourplanting activities to the surrounding area in order to help protect the local environment.
We asked for opinions and hopes regarding these initiatives.
Kedah Forestry Agency

Taman Sejahtera Regional Government

Thoughts from Rahman bin Jalil

Thoughts from Umar bin Mohd Murad

Japanese companies that are planting trees around the forest agency
areas in Kedah State are Sumitomo Rubber and one other. That company
has undertaken to maintain management of the forest.
I also recognize that your company’s efforts are very significant.
Planting trees and greening in general are important initiatives, but
upkeep of trees that have already been planted is major work. We tend
the trees until they become a certain size. My hope is that you will takethe next step in continuing the activities that you have carried out so far.
In 2016, we will hold the “International Day of Mangrove” event forthe cultivation and protection of mangrove forests, and we would like
you to participate in this if at all possible.

My community is adjacent to the Sumitomo Rubber premises, but
further downhill. This difference in height makes me concerned about
landslides in heavy rain.
I’ ve heard you have in place good drainage systems, but I’ dfeel reassured by flood control measures that can handle heavy
monsoon rains.

Contributing to Solving Local
Social Problems
Support Activities for Local Schools
The Malaysia Factory is providing assistance to help resolve local societal problems, including assistance for reconstruction
after flooding from heavy monsoon rains, and making donations to local schools for children with disabilities.
We asked for opinions and hopes regarding these social contribution activities.
Special Needs School

Taman Sejahtera Kindergarten

Thoughts from Mejar Chandra SekharanThoughts from Najwah binti Zainudin

We hope for ongoing support, looking into the future, because at our
school, for the most part parents are unable to pay for tuition.
We need to teach children who are slow learners, who have attention deficit problems, and those with various other issues how to cook,clean, do gardening, and other life skills.
We also receive assistance from your company which is of great
help, and we look forward to your ongoing initiatives and support.
In this region, there are a great number of organizations providing
humanitarian assistance. Every day we are inundated with letters frompeople wanting assistance—including help after natural disasters, toprovide clothing to children of single mothers, and for medical support.
We hope that you can consider providing us with whatever support you can.

Making a large contribution at one time may well be difficult, howevereven small contributions, such as providing a little financial support forvarious activities or sports events would be of help.
This does not need to be limited to just junior high schools or highschools for children with disabilities, as an example. Even tiny contributions can make a big difference.

Special Needs School

Thoughts from Mejar Chandra Sekharan
What about erecting road signs? We are also involved in managing traffic
accidents, which every day kill 18 people nationwide.
Since your company was established here, the roads have been
maintained in good condition, but I would suggest that you erect someroad signs to raise awareness of road safety.
We would hope for further initiatives and assistance in raisingsafety awareness.

DialogueRiver cleanup using mud balls

Factory tour

Greening activities on-site

Lively dialogue, exchanging opinions

Donation to special needs school

Visiting orphanage, providing meals

Conclusion of Dialogue
From Sumirubber Malaysia President Miyamoto
Today’ s dialogue drove home to me theimportance of two-way communication inachieving mutual understanding. We arecarrying out various CSR activities, in accordance with the Sumitomo Rubber Group’ s“GENKI” guidelines, and we have found this agood opportunity to review our activities. Inline with the opinions and hopes expressed
here, our desire is that we can further develop
our CSR activities through communication
Tree-planting activities in the surrounding area

43

Cleanup activities in the surrounding area

SUMITOMO RUBBER GROUP CSR REPORT 2016

with all our stakeholders.
One of our objectives is to be an
outstanding company, held in esteem by all of
our stakeholders, and we would like to growtogether. Looking forward, it is my wish thatthrough cooperation with everyone, we cantogether create a sustainable society, and in
the future celebrate the 40th, 50th and the100th anniversary of Sumirubber Malaysia!

Donations to flood relief

SUMITOMO RUBBER GROUP CSR REPORT 201644

Site Report
Shirakawa FactoryThis section introduces some of the CSR activities at the Sumitomo Rubber Group’s six factories in Japan, 14 factories overseas
and four affiliated companies in Japan.
For initiative overviews and activity examples, please visit our corporate website (scheduled to be posted at the end of July 2016).
http://www.srigroup.co.jp/english/csr/

Shirakawa City,
Fukushima Prefecture

Izumiotsu City,
Osaka Prefecture

Izumiotsu Factory

Hunan Factory (China)

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

1,700

Number of Employees

1,331

Number of Employees

Number of Employees

850

Opened1974

Opened1961

Main Products
Automobile tires,
agricultural equipment and industrial vehicle tires,
precision rubber parts for medical equipment

Opened2012

Cleaned the roadside along with local residents
before the Senshu International City Marathon.

Conduct regular volunteer activities at local old
folk’s homes each year.

Automobile tires

Kobushi magnolia cultivated at the Shirakawa
factory was planted in the playground of a newly
constructed kindergarten in Shirakawa City.

Miyazaki Factory

Miyakonojo City,
Miyazaki Prefecture

Main Products

Automobile tires, motorcycle tires

Part of the farm located onsite at the Nagoya Factory was opened up as place for excursions by neighborhood children and kindergarteners.

Tamba City,
Hyogo Prefecture

Ichijima Factory

396

Factories in Japan

Number of Employees
Main Products

Opened1944

Kakogawa City,
Hyogo Prefecture

Kakogawa Factory

Main Products

Automobile tires

South Africa Factory

KwaZulu-Natal
Province,
South Africa(Sumitomo Rubber South Africa (Pty) Limited)Thailand Factory

Affiliates in Japan

Factories Overseas

Brazil Factory

Paraná,Brazil

6,501
Number of Employees
2006
OpenedAutomobile tires,
Main Products
agricultural equipment and industrial vehicle tires

Number of Employees

1,271

Engaged in mangrove sapling planting activities.

Conducted planting activities and cleanup activities
along nearby river shores in collaboration with
Paraná city.

Turkey Factory

USA Factory

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

Cankiri Province
Turkey(Sumitomo Rubber AKO Lastik Sanayi ve Ticaret A.S.)(Sumitomo Rubber do Brasil Ltda.)

Opened2013

Main Products

Automobile tires(Sumitomo Rubber USA, LLC)

New York
United States

Number of Employees

1,182

Number of Employees

818

Number of Employees

1,198

Opened1973

Opened2015

Opened1923

Golf balls

Opened1972
Number of Employees
497
Marine fenders,
Main Products
precision rubber parts for office machines,
gas tubing, vibration control rubber dampers,
Precision rubber parts for medical equipment

Held an acorn seeding party in conjunction withneighborhood nursery school children.

Free saplings are distributed twice each year atneighborhood roadside stations.

We planted 100 sawtooth oak saplings in the No.2
GENKI Forest.

Provided materials and supported training forindustrial art production for people unable to findemployment.

Screened motion picture “Kainan 1890” produced
through a Japan-Turkey collaboration depicting thefriendship between the two countries.

Sold hot dogs at a charity event to help children
with incurable diseases. All sales proceeds were
donated.

Dunlop Retread
Service Co., Ltd.

SRI Engineering Ltd.

Nakata Engineering
Co., Ltd.

Thailand Factory

Thailand Factory

Malaysia Factory

Number of Employees

1,437

Number of Employees

202

Opened1976

Opened1996

Automobile tires

Main Products

Number of Employees
OpenedBusiness Outline

Ono City,
Hyogo Prefecture

58
1972
Manufacture/sale of retread tires

Cut grass after planting acorns at the Oda Meridian
Forest in Ono City.

Main Products

Number of Employees
OpenedBusiness Outline

Kakogawa City,
Hyogo Prefecture

176
2003
Design/manufacture of metallic
molds for tire production

Every year in the summer, employees pick up litterin the vicinity of the site.

Kobe City,
Hyogo Prefecture

Automobile tires

Main Products(Natural Rubber Processing)

Udonthani,
Thailand

Main Products(Tennis Balls)

Automobile tires

Prachinburi Province,
ThailandBusiness Outline Design/manufacture/sale of machines
and equipment for the manufactureof rubber products

Participated as volunteers in the construction of acancer eradication venue for cancer patients.

Visited a nearby elementary school to join thestudents in conducting 4S activities

Planted 1,550 trees in neighboring Baan Ganyai
village

Tree planting activities conducted together withstudents from a nearby high school.

Zhongshan Factory (China) Guangdong,
China

Vietnam Factory

Switzerland Factory

362
2007
Tennis balls

270

Number of Employees

3,726

Number of Employees

2,300

Number of Employees

443

Number of Employees

1,160

Opened1997

Opened2004

Opened2001

Opened2007

Each month, we conduct cleanup activities at
nearby roads.

SUMITOMO RUBBER GROUP CSR REPORT 2016

Main Products

Automobile tires, golf balls

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

Changshu Factory (China)

291
2010
Natural rubber products

1989
Golf clubs

Kedah,
Malaysia(Srixon Sports Manufacturing (Thailand) Co., Ltd.)

1914

OpenedMain Products(Sumirubber Malaysia Sdn. Bhd.)

Number of Employees
OpenedMain Products

OpenedNumber of Employees

Karawang Regency
Indonesia

Automobile tires, motorcycle tires(Sumirubber Thai Eastern Corporation Co., Ltd.)

131

Indonesia Factory(P.T. Sumi Rubber Indonesia)

Main Products

Number of Employees
OpenedMain Products

Number of Employees

Dunlop Golf Club Corp. Miyazaki Prefecture

Miyakonojo City,

45

Toyota City,
Aichi Prefecture

Nagoya Factory(Number of employees as of December 31, 2015)(Sumitomo Rubber (Changshu) Co., Ltd.)

Jiangsu,
China(Zhongshan Sumirubber Precision Rubber Ltd.)(Sumirubber Vietnam, Ltd.)Hai Phong City,
Vietnam

Automobile tires

Main Products Precision rubber parts for office machines

Main Products Precision rubber parts for office machines

Acorn seedlings cultivated from seeds inside theChangshu factory were presented to local residents
at the Changshu Civic Square.

Planted trees at the base of Zongshang Wugui
Mountain. 1,270 saplings were planted.

Conducted events inviting employee families.

Main Products

Number of Employees

609

Opened1981

Main Products(Lonstroff AG)

Number of Employees
OpenedMain Products

Rubber gloves

Switzerland
Canton of Aargau

163
1908
Medical rubber parts,
industrial rubber parts

Volunteering for many years as a leader of a juniorfootball team.

SUMITOMO RUBBER GROUP CSR REPORT 201646

Independent Verification Report

Third-Party Comments

To enhance the reliability of this report and the environmental data disclosed on our website, we underwent verification bya third party.
Data marked with a(pages 23, 27, 29) has been verified.
The target data for verification and the verification criteria used are as follows.

Creating KPIs for CSR
The Sumitomo Rubber Group’s CSR activities are improving steadily each year. The
report for this fiscal year has expanded the CSR indicators shown in its highlights offinancial results, and also shows key performance indicators (KPIs) for these as well as
for financial indicators. This effort to make CSR activities central to the Company is inline with global CSR trends. I applaud the Company for the appropriateness of theindicators it has selected and its achievement levels. I believe there is still some roomfor deliberation, and such discussion should lead to future developments. Goingforward, I would like to see the Group engage in an active exchange of opinions withexternal stakeholders about these KPIs.

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

Reviewing Materiality Identification
Katsuhiko Kokubu

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

The Sumitomo Rubber Group has reviewed the materiality analysis conducted in2011, expanding the number of indicators from 13 to 19. As materiality takes into
account such factors as the corporate operating environment and stakeholder trends,
regular reviews are needed. I give Sumitomo Rubber Group high marks for its stancetoward CSR. At the same time, I believe that additional explanation of the feedback
process on how past activities were summarized and how the new revisions weremade would enhance communication.

Stakeholder Dialogue at the Malaysia Factory
Each year, this report contains a stakeholder dialogue section. I thought this year’s
highlighting of the Malaysia Factory was an extremely important trial. Creating sharedvalue (CSV) is an important CSR concept. Creating value effectively along with thelocal community does more than contributing to that community; it also emphasizes
a company’s ability to create value.
Changing a manufacturing plant to match economic conditions alone may generate temporary profits, but this approach does not create sustainable value. In thissense, holding a stakeholder dialogue in another Asian country is extremely meaningful for the Group’s CSR activities.

Action Plans and Benchmarks
Business activities can be divided up into those that involve the formulation of actionplans and achievement of targets and those that require the setting of benchmarks tostandard levels. Japanese companies generally prefer to take the action plan
approach, but once activities reach a certain level, in many cases a transition to benchmark management better allows a company to focus on enhancing quality. Benchmark management tends to be more common in Europe and the United States.
Taking another look at CSR activities from this perspective might prove a usefulreference for future developments.

Response to Third-Party Comments
I would like to once again thank Professor Kokubo for his gracious evaluation. The opinions he has provided us over the years have led us to establish KPIs for CSR and identify materiality (priority issues). We haveendeavored to gain an understanding of stakeholder needs and provide easy-to-understand feedback
using these quantitative indicators. In this year’s report, we have made an effort to include frank commentsfrom a variety of stakeholders. Considering the importance of being balanced rather than being one-sided,
we have taken up the challenge of conducting our dialogue overseas. Going forward, we will engage inbenchmark management to raise this awareness further as we endeavor to enhance the effectiveness andtransparency of our activities.

47

SUMITOMO RUBBER GROUP CSR REPORT 2016

Toshihiko Komatsu

Executive Officer in chargeof CSR and Human Resources

SUMITOMO RUBBER GROUP CSR REPORT 201648

Honors and Certifications from Outside Organizations

Green•Received the city of Kobe’s Flower Clock Award for the Kobe Head Office’s provision of acorn

Ecology•Sumitomo Rubber (Changshu) Co., Ltd. and Sumitomo Rubber do Brasil Ltda. received ISO 50001

Green initiative

Ecological processseedlings

energy management system certification•P.T. Sumi Rubber Indonesia received the Environmental Preservation Promotion Award fromthe Karawang Regency of Indonesia

Editorial Policy
The Sumitomo Rubber Group has been conducting CSR activities
in five key areas represented by the GENKI acronym (see pages
19–20) of its CSR Guidelines as stipulated in our Fundamental
Policy on CSR Activities. This report summarizes the results of
the CSR activities carried out by the Group in fiscal 2014.
Our CSR activities are related to “Go for NEXT,” the slogan
of VISION 2020, and the three facets of our engine for growth:
the challenges of new markets, an insatiable drive for innovationand entering new business fields. Highlighting these activities
are two feature articles, entitled “Business Expansion in Europe
and North America” and “Evolve Development Technology.”
Basic corporate CSR information and detailed data notcovered in this report are available on the CSR Activities sectionof the Company’s website (scheduled to go online at end of
July 2016).
Target Readers

Next

Next-generation product development

Customers, employees, shareholders/investors, business
partners, local communities, general consumers, NPOs/NGOs,
administrative agencies•Dunlop ENASAVE 100 won the Excellence Prize at the Sixth Monodzukuri Nippon Grand Awards•Dunlop ENASAVE 100 earned the Hyogo Prefecture Science Award•Dunlop ENASAVE 100 named Environmental Achievement of the Year at the Tire Technology
Expo 2014•Dunlop ENASAVE 100 received the Excellence Award in the 10th Eco-Products Awards•Falken SINCERA SN832i won the Good Design Award•Dunlop ENASAVE RV504 fuel-efficient tire received the Good Design Award•Pretty-ne gloves, made from natural rubber, earned the Good Design Award

Group companies in Japan and overseas, with a focus on the six
factories operated by Sumitomo Rubber Industries, Ltd. andDunlop Sports Co., Ltd.
Referenced Guidelines• Sustainability Reporting Guidelines Version 3.1 and Version 4,
published by the Global Reporting Initiative (GRI)• Environmental Reporting Guidelines (Fiscal 2007 edition),published by the Ministry of the Environment
Fiscal 2015 (January 1, 2015 to December 31, 2015), with some
information from outside of this period

Publishing Date

Kindness to employees

July 2016 (planned publishing date for the next edition: June 2017)•Again in 2015 received the Kurumin next-generation certification mark•Sumitomo Rubber (Thailand) Co., Ltd., received the Company Prize for Excellent Welfare andThird Person’s Comments
Comments from an expert are included in order to adopt an
objective perspective on the report. (See Page 48.)

Labour Relations at the Fiscal 2015 Excellent Company Awards, sponsored by the Thai Ministryof Labour

Disclaimer

Integrity

Integrity for stakeholders

Reporting centered around
our GENKI CSR Guidelines

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

Featurereports
Reports ofactivities
undertaken
in a specificyear

DetailedreportBrochure

Updatedfrequently(Japan Only)

Companies Covered by the Report

Period of the Report

Kindness

Type of Reporting Media

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

WebsiteAccessibility of Report
We have further enhanced our main financial indicators
and CSR-related indicators since last year’s report. We
report on some of our value creation through businessactivities.
Page5-6
We once again explain GENKI, a keyword for CSR activities unique to the Sumitomo Rubber Group. We provide
content aimed at deepening the reader’s understandingof CSR at the Group.
Page19-20
We introduce the materiality identification process andour prioritization of important issues. We report on
stakeholder characteristics and methods of dialogue.
Page21-22
We continue the process of reporting on stakeholder
dialogues at factories in various regions, which wecommenced in 2014. To promote the global rollout of
our CSR activities, this report reports some overseas
dialogue (Malaysia).
Page41-44•Corporate advertisement earned First Prize in both the Automotive/Transportation andEnvironment divisions in the 64th Nikkei Advertising Awards•Shirakawa Factory received a Special Prize in the first Fukushima Economy, Industry andMonodzukuri Awards•Received four golds in the Davey Awards, an international advertising contest•MIRAIE vibration control unit for housing received the 9th Kids Design Award

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SUMITOMO RUBBER GROUP CSR REPORT 2016

SUMITOMO RUBBER GROUP CSR REPORT 201650