ESG Management Undertaken by the Sumitomo Rubber Group

Initiatives to Protect the Environment
Initiatives to Achieve Carbon Neutrality
Initiatives to Reduce Scope 1 and 2 Emissions
The Sumitomo Rubber Group has identified a target of halving its
Scope 1 and 2 CO2 emissions by 2030 (compared with the 2017
level) and achieving carbon neutrality by 2050. To this end, eachbase has undertaken the preparation of carbon neutrality scenariosthat include the installation of energy-saving facilities, the expansionof cogeneration systems, the introduction of solar power generators,
a shift to the procurement of green energy and the adoption ofhydrogen as an alternative fuel. If the reduction of CO2 emissions

2017

progresses in line with these scenarios, we will be able to halve ourCO2 emissions in 2029, a year ahead of schedule.
To raise awareness among employees, we also launched an
intranet website that disseminates informational videos on carbon
neutrality. Furthermore, as part of efforts to nurture a keen awareness of the need to protect the Earth’s environment into the futureamong younger employees, we host roundtable talk events in which
new recruits are invited to discuss carbon neutrality.

+

Harnessing Next-Gen Energy:

Hydrogen

CO2
Emissions

2030
50%

2050
CarbonNeutrality

An intranet website created by employee suggestions as partof feedback gleaned via questionnaires targeting new recruits

Note: Figures are calculated using CO2 emission factors in 2017 as a fixed coefficientUtilizing Hydrogen in Tire Manufacturing
As part of initiatives to achieve carbon neutrality, a project is now under
way to switch from natural gas to hydrogen as the fuel used to produce steam for curing, an essential part of tire manufacturing process.
This project is subsidized by the New Energy and Industrial
Technology Development Organization (NEDO), with verification testing under way since August 2021 at our Shirakawa Factory inShirakawa City, Fukushima Prefecture.
The specific aim of this project is to supply steam for the curing process that is produced by hydrogen-fired boilers to our leading-edge
NEO-T01 Manufacturing System, which employs a high-precision
metal core and enables the production of tires boasting extremely highperformance with a compact, streamlined process. We have also
introduced a set of solar power generators with a large enough capacity
to supply the electricity needed to run the entire NEO-T01 production
line. Employing these energy sources, in January 2023 we launched
Japan’s first mass-production tires manufactured via a carbon neutral
process as defined in terms of eliminating Scope 1 and 2 emissions.
Going forward, we will conduct verification testing to identify andresolve various issues associated with the around-the-clock operation of this production line, including how to control the volume ofNOx emissions. In this way, we will assess the effectiveness ofhydrogen utilization.

Category

Category 1
Category 2
Category 3
Category 4
Category 5
Category 6
Category 7
Category 9
Category 11
Category 12
Category 13
Total

Purchased Goods and Services
Capital Goods
Fuel- and Energy-Related Activities not Included in Scopes 1 and 2(Upstream) Transportation and Distribution
Waste Generated in Operations
Business Travel
Employee Commuting(Downstream) Transportation and Distribution
Use of Sold Products
End-of-Life Treatment of Sold Products(Downstream) Leased Assets

Integrated Report 2023

Solar power generators(From left) Mr. Eiji Ohira from NEDO, President
Satoru Yamamoto from Sumitomo Rubber Industries
and Mr. Hirohide Furutani from the National Instituteof Advanced Industrial Science and Technology

Fiscal 2022 emission volume (thousand t-CO2e) Proportion of each Category in Scope 3 emissions

5,073
46
154
349
19
5
17
5
32,870897
339,43712.86%
0.12%
0.39%
0.88%
0.05%
0.01%
0.04%
0.01%
83.35%
2.27%
0.01%
100%

Note: Emissions in categories 8, 10, 14 and 15 are excluded from calculation.

Implementing ICP
To create a framework for promoting internal activities in order toachieve our carbon neutrality targets, we introduced Internal Carbon
Pricing (ICP), setting ¥8,000 (USD70)/t-CO2 as the reference price ona trial basis in 2022. We then officially adopted the ICP approach in2023. Although we had previously applied ICP to investment in energy-­saving measures, we now implement ICP to examine all investment
projects that could possibly affect the volume of CO2 emissions.
Current ICP: ¥10,000 (USD70)/t-CO2

59

Goods and Services), Category 11 emissions (Use of Sold Products)
and Category 12 emissions (End-of-Life Treatment of Sold Products) as
our emissions in these three categories are particularly voluminous. In
P.99
this way, we have secured the reliability of our emission data.
The sum of emissions from the abovementioned three categories
and Category 4 emissions (Upstream Transportation andDistribution) accounts for around 99% of our Scope 3 emissions.
Accordingly, we are now formulating reduction targets and planning
reduction measures to address emissions in these four categories.
In November 2022, Sumitomo Rubber Industries submitted acommitment letter to the Science Based Targets Initiative (SBTi).
Currently, we are striving to acquire SBT certification by formulatingtargets consistent with the Paris Agreement and clarifying measures
to be undertaken to achieve such targets by the end of the fiscal
year ending December 31, 2023. We plan to feature the details ofthese endeavors in the next edition of the Integrated Report.

Breakdown of Scope 3 Emissions• Volume of CO2 emissions reduced in 2022
15% reduction compared with the 2017 level

Hydrogen-fired boilers

Artists’ rendering of solar panels to be installedat the Thailand Factory

Toward the Reduction of Scope 3 Emissions
The Sumitomo Rubber Group not only strives to achieve carbon
neutrality in terms of Scope 1 and 2 emissions but also endeavors to
reduce the volume of greenhouse gas (GHG) emissions from theentire supply chain, including Scope 3 emissions. It should be notedthat the Group’s overall Scope 3 emissions are approximately 40
times as much as the sum of its Scope 1 and 2 emissions. Also, as
the reduction of Scope 3 emissions is now deemed an integral partof mitigation measures, which have become more significant thanever in countering the impact of climate change, the Sumitomo
Rubber Group considers curbing these emissions an important issue
to be addressed by both itself and society as a whole.
With this in mind, in 2022 we strove to enhance the accuracy of ourcalculation of Scope 3 emissions. We have thus measured the volumeof these emissions across all emission categories related to businessactivities undertaken throughout the Group. In addition, we have undergone the third-party verification of Category 1 emissions (Purchased

Energy Saving,
Cogeneration,
Solar Power, etc.

100%

Shifting to Energy Procured from Renewable Energy Sources, Introducing Solar Power
Generators and Expanding Cogeneration Systems
In January 2022, our two factories in China (Changshu and Hunan) shifted all their energy purchasing
to energy procured from renewable energy sources. A similar shift was then executed in the same year
at another of our factories in China (Zhongshan), some affiliates in Japan and our factory in Turkey.
In 2023, our Brazil Factory, Tokyo Head Office (office facilities only) and Thailand Factory plan toalso shift their energy purchasing to renewable energy. In addition, the Thailand Factory plans to
install cogeneration systems as well as rooftop solar power generators, the latter of which will be
the world’s largest in scale.

“Sustainability Challenge,” an In-house Campaign
Since 2021, we have conducted the “Sustainability Challenge,” anin-house campaign, with the aim of encouraging every employee tothink about sustainability and fostering a sense of unity regarding thepromotion of ESG management.
This campaign involves the periodic inspection of tire pressure toprevent the deterioration of fuel efficiency* due to insufficient tirepressure. Other activities include encouraging employees to use theirown shopping bags and water bottles instead of purchasing them atstores. In this way, the campaign has begun by facilitating small
actions that we can take in our daily lives.
In 2022, all Sumitomo Rubber Group employees were called upon
to participate in this campaign. As a result, a cumulative total of
14,285 employees have now taken part and thus achieved a 509ton reduction in CO2 emissions.
* Fuel efficiency deteriorates by 4.3% with a 50kpa decrease in tire pressure; based on asurvey of the Japan Automobile Tyre Manufacturers Association, Inc.

Integrated Report 2023

60

ESG Management Undertaken by the Sumitomo Rubber Group

Initiatives to Protect the Environment

Initiatives to Support a Circular Economy
A Certification System for Sustainable Products (Internal Standards)
In 2023, the Sumitomo Rubber Group introduced a certification system for sustainable products based on internal standards as part ofmeasures specified in its Long-Term Sustainability Policy “Driving
Our Future Challenge 2050.”
We thus apply our own assessment standards to the selection
and certification of sustainable products from among all offerings of
our Tire, Sports, Industrial Products and other businesses.
Assessment items are set for each product group and include theratio of sustainable raw materials used, the type of energy consumed
in manufacturing processes and the product’s recyclability after use.
Products that meet bare minimum requirements are designated

Promoting the Use of Sustainable Raw Materials“Standard,” while “Gold” certification is granted only to products
boasting outstanding features in terms of sustainability. Our current
aim is to ensure that all products are certified “Standard” by 2030
and, to this end, are striving to update their features.
Looking ahead, we will continue to develop an internal certification
framework to identify products capable of contributing to global
warming countermeasures and environmental load reductions
throughout their life cycles. By doing so, we will align our productdevelopment approach with a progressive shift to a business modelin favor of circular economies.

In line with our Long-Term Sustainability Policy “Driving Our Future Challenge 2050,” we aim
to pursue the creation of “a future of joy and well-being for all” through the practice of ESG
management. Moreover, as part of our environmental initiatives, we have formulated“TOWANOWA,” a unique business concept that supports the circular economy. Based on thisconcept, we aim to reduce the volume of CO2 emissions and realize sustainability along ourentire value chain, including material development and the procurement process. To this end,
we have set targets for increasing the sustainable raw material content of our tires at 40% by
2030 and 100% by 2050.
In March 2023, we developed new tires for racing use. These tires are manufactured using
biomass and recycled raw materials, which together account for 38% of raw materials used,

The Current Ratio of Internally Certified Products and Our Target for 2030 Regarding This Ratio

and are sold under the Dunlop brand in the motor sports field—the front line of tire develop-

Ratio of Certified Tires(based on units of tires)

ment. To create these tires, we utilized natural rubber and naturally derived raw materials asGoldRatio of Certified Sports Business
Offerings (based on sales)

Standard

2030
targetGold

30

Current
6
status

0%

100

70

20%

40%

60%

Standard

GoldStandard

30

2030
target30

Current
status20

2030
targetCurrent2
status

58

52

80%

100%

Ratio of Certified Industrial Products Business
Offerings (based on the number of sites)

0%

100

70

53

51
20%

40%

60%

80%

100%

0%

Honda NSX-GT, which belongs to the Modulo Nakajima
Racing team, uses our racing tires with high sustainable
raw material content

well as materials recovered from recycled steel. The resulting tires have a sustainable raw
material content much greater than that found in conventional racing tires. Looking ahead, we

100

70

will update and finely tune these tires to enhance their performance as we aim to make themavailable for actual racing use by the end of 2024.
In addition, from 2024 onward we will release replacement tires with high sustainable raw

20%

40%

60%

80%

100%

material content for commercial use.

The tire bears a uniquely designed logo sticker on its side

We aim to ensure that all products acquire “Standard” certification or above by 2030.

Examples of Assessment Standards
Phase

Assessment items

Planning and design

Lightweight

Initiatives to Reduce the Use of Plastics
Examples of initiatives deemed worthy of certification
Promote weight saving for tire products to curb CO2 emissions in the course of use
Save resources by reducing packaging material use, curb CO2 emissions in the course of transportation,
cut back on the volume of waste plastics, etc.

Material development
and procurement

Materials

Increase the ratio of sustainable raw materials used (adoption of biomass or recycled raw materials)

Production anddistribution

EnergyIncrease the ratio of renewable energy used in the course of manufacturing
Reduce the overall volume of energy used in the course of manufacturing, etc.

Fuel efficiency
Product life

Improve tires’ wear resistance to reduce environmental burden

Specifications

Enhance the ease of retreading
Adopt product labeling designed to indicate environmental friendliness and raise public environmental awareness
Adopt resource-saving installation methods for industrial products

In the Sports Business, our initiatives include updating tennis balldispersion into rivers and the sea as, with use over time, turf fibers break and the rubber chips
used as fillers may leak, spreading into the environment. Aware of this possibility, since 2020
Sumitomo Rubber Industries has been engaged in surveys aimed at determining the degreeof dispersion with the collaboration of local governments and other bodies in charge of the
products designed to robustly curb microplastic dispersion while conducting the verification

Committee to finalize those worthy of certification.
Through this scheme, we will promote the development of aninternal structure for incorporating sustainability elements into product development.

testing of such materials and products.
Products we have developed thus far include barrier materials used in the outer perimeter

Installation of a system for curbing microplastic dispersion

fences of artificial turf and filtering materials to be installed in drainage conduits. For some ofthese products, their use as a microplastics countermeasure has been designated by the
Ministry of the Environment as a good practice*2 or featured in Guidelines Regarding theCertification Scheme

Curbing of Microplastic Dispersion from Artificial Turf Facilities*3 issued by Osaka Prefecture in

Second half Sustainability Promotion Committee

March 2023. Moreover, since June 2022, the planning of countermeasures to curb the disper-

Chairperson: Director in charge of ESG

sion of microplastics from municipal tennis courts with artificial turf incorporating sand*4 has

ReportAnnual meeting of the Sustainable
Products Certification Committee

Reports from eachbusiness division

been under way in collaboration with Tama City, Tokyo.
Tire

Approve

Secretariat: Sustainability Promotion Dept.
Approvers:	Director responsible for supervision of Tire Business, Director in
charge of tire product development, Director in charge of Sports
Business, Director in charge of Industrial Products Business
Integrated Report 2023

window films. (Please refer to page 42 for details.)

management of the sports facilities in question. Moreover, we are developing materials and

Our Scheme for Certifying Sustainable Products

61

paper-based labeling. As for golf ball packaging, we are phasing out

the 2019 level and promotes initiatives to this end.

Artificial turf used in sporting facilities is now considered a possible source of microplastic*1

Based on internal standards, including items listed above, we grant certification based on a two-grade system, with each eligible product bearing “Standard” or “Gold” certification in line withcumulative total points earned.

The following diagram shows the flow of our certification scheme.
First, separate product development committees are convened to
examine Tire, Sports and Industrial Products business offerings todetermine candidate products. Directors then screen these products
at the annual meeting of the Sustainable Products Certification

packaging by abolishing the use of plastic lids and switching to

it uses on a global basis by 40% by the year 2030 compared with

Initiatives to Counter the Microplastics Problem

Decrease tires’ rolling resistance to reduce environmental burden

Sale and use

Recovery andrecycling

The Sumitomo Rubber Group aims to reduce the volume of plastics

Sports*1 Small pieces of plastic that have a diameter of no more than 5mm.
*2 https://www.env.go.jp/water/post_113_00005.html (Japanese only)*3 https://www.pref.osaka.lg.jp/hodo/index.php?site=fumin&pageId=47315 (Japanese only)*4 https://www.city.tama.lg.jp/map/sports/tennis/1003856.html (Japanese only)

Barrier materials for use in the outer perimeter fencesof artificial turf

Industrial Products

Integrated Report 2023

62

ESG Management Undertaken by the Sumitomo Rubber Group

Initiatives to Protect the Environment

Environmental Management

Supply Chain Management
conduct annual assessments of climate change risks in order toaccount for external changes, such as updates to targets established under the Paris Agreement.

Basic Policy on Environmental Preservation(fundamental philosophy)
The Sumitomo Rubber Group established its Environmental Policy in
July 2007 and revised said policy in April 2019, putting it into practice via environmental initiatives. Environmental preservation is one of
the most important responsibilities that companies must fulfill withina global society.
Demand for global companies to implement uniform environmental management throughout the world regardless of country or
region is strong.
As it accelerates its global expansion, the Sumitomo RubberGroup is focusing more than ever on promoting global environmental
management.
Environmental policy
https://www.srigroup.co.jp/sustainability/genki/environment/pdf/ep_sri.pdf

Global Environmental Management

P.88

Environmental Management System

Sustainability Promotion Committee Members
Chairperson: Director in charge of ESG
Members: Officers responsible for relevant
departments
Secretariat: S ustainability Management
Promotion HQ, Human
Resources & General Affairs HQ

To implement global management in all of its corporate activities,
including the creation of a low-carbon society, in December 2010,
the Group obtained ISO 14001 Global Multi-Site Certification for its
30 bases in Japan and overseas. This enabled us to carry out unified
environmental management at major production and development
bases in Japan and overseas.
The number of sites maintaining ISO 14001 certification has sincerisen, reaching a total of 36 at the end of 2022 (of these, 34 bases arecovered by the multi-site certification). As such, the ratio of ISO 14001
certified sites amounted to 94.7%. Moreover, the number of employees
working at these sites as a percentage of total employees was 74.3%.
In fiscal 2022, no sites were newly certified. However, we subjected
uncertified sites to corporate audits conducted in a manner similar to
those conducted at certified sites in order to strengthen our environmental management structure.
Coverage Rate of ISO 14001 Certified Sites (Percentage of employees)

President, Sumitomo Rubber Industries, Ltd.
Sustainability Promotion Committee

ISO 14001 Global Multi-Site Certification

Tire BusinessSports Business

ISO14001
Certified Site
Percentage of
Employees

Industrial Products
Business
Planning and administrative divisions

29,999/40,365

74.3%Group Companies(As of December 31, 2022)

The Sustainability Promotion Committee meets twice a year to ensurethat members share their recognition of priority issues to be tackled
through sustainability activities undertaken around the globe, including
environmental management, and to confirm progress in such activities.
With the Director in charge of ESG serving as the committee chair, thecommittee includes officers responsible for relevant departments.

Responding to Climate Change
Among the myriad issues that society currently faces, we believethat climate change stands out as one of the most important andpressing issues in the world today. Thus, while fully abiding by the
Act on the Rational Use of Energy and the Shift, etc., to Non-Fossil
Energy (Energy Saving Law), the Act on Promotion of Global
Warming Countermeasures (Global Warming Law) and other environmental laws and regulations, the Sumitomo Rubber Group is also
committed to fulfilling our corporate social responsibilities in otherways, including harnessing the advanced technical capabilities that
we have amassed since our founding in order to tackle the challengesof reducing greenhouse gas emissions and so forth.
To counter the climate change problem, the Sustainability
Promotion Committee is also engaged in the follow-up monitoring of
progress in countermeasures while ensuring information sharing within
the Company and delivering timely reporting to the Board of Directors.
In addition, the Risk Management Committee, which is chaired by
the President, analyzes various business risks that coincide with climate change risks based on internal risk management rules. Resultsof this analysis are reported to and discussed by the Board of
Directors after being deliberated on by the committee itself. We also

63

Integrated Report 2023

Initiatives to Reduce TRWPThe generation of TRWP* is an unavoidable side effect of generating
the level of friction necessary to ensure driving safety, the mostimportant tire function. On the other hand, it is a fact that TRWP isemitted into the environment. The Sumitomo Rubber Group considers TRWP emissions a profound issue that must be addressed by
the tire industry as a whole.
Sumitomo Rubber Industries is one of the founding members of the
WBCSD’s*2 TIP,*3 an industry association consisting of 10 global tire
manufacturers. We have been involved in such activities as researchand studies focused on TRWP and dialogue with stakeholders.
In addition to tackling the issue of TRWP, TIP currently strives toaddress such universal ESG concerns of the tire industry as the
management of waste tires, the handling of raw materials and theirchemical substance content and environmental KPIs.
Sumitomo Rubber Industries is also a member of the JATMA,*4
which similarly endeavors to tackle the TRWP problem.
1*1 Tire and Road Wear Particles*2 World Business Council for Sustainable Development*3 Tire Industry Project*4 The Japan Automobile Tyre Manufacturers Association, Inc.

Environmental Data

P.96

Honors and Certifications from
Outside Organizations

P.99

In step with advances in the mobility industry around the world, tire
demand is expected to grow. Accordingly, demand for natural rubber, the primary tire raw material, is likely to grow even stronger. This
prospect has prompted looming concerns about deforestation andthe emergence of human rights issues in regions where natural
Targets under Our Long-Term Sustainability Policy:“Driving Our Future Challenge 2050”• Raw Material Procurement in Line with the
Sustainable Natural Rubber (SNR) Policy
By 2030: The SNR Policy applies to key suppliers
By 2050: The SNR Policy applies to all suppliers• Realizing Sustainable Procurement through
Third-Party Assessments Provided by EcoVadis Aim to procure 95% of tire raw materials on a purchase value
basis from suppliers who earn scores of 45 or higher (2030)
Note: Plans call for expanding the scope of third-party assessments toinclude businesses other than the Tire Businessrubber is produced. As a tire manufacturer, the Sumitomo RubberGroup aims to curb these problems, and to this end has implemented
a variety of initiatives to help the entire natural rubber supply chain
improve and update itself into a more sustainable industry.

Issues to Be Addressed in the Course of Natural Rubber Procurement
Securing Traceability
The natural rubber supply chain includes stakeholders around the globe, including
approximately 6 million smallholders as well as plantations, dealers and natural rubber
processors. This complexity makes it hard to clarify distribution routes. Securing
traceability is thus a major issue confronting the industry.

Supporting Smallholders
Smallholders account for around 85% of natural rubber producers. These farmers
constitute the uppermost tributary of the supply chain and tend to be the most
exposed to risks of poverty and human rights violations. This is why we deem it
essential to support them via, for example, the development of a framework thatenables them to continue as sustainable producers.

Initiatives to Resolve Issues
Sumitomo Rubber Group Sustainable Natural Rubber (SNR)
Policy (since 2016)
In October 2016, Sumitomo Rubber Industries joined the SNR-i* 1
advocated by the IRSG.*2 In September 2018, we also became a participant in the GPSNR.*3 In August 2021, we updated our SNR Policy
to reflect a policy framework approved by the GPSNR, with the aim ofgearing up efforts to resolve issues in regions where natural rubber is
produced, such as environmental problems caused by the destruction of forests and human rights problems in the working environment.
In line with our updated SNR Policy, we will proactively promote collaborative initiatives with companies in our supply chain to realize asociety in which natural rubber is procured in a sustainable manner.
*1 Sustainable Natural Rubber Initiative*2 International Rubber Study Group*3 Global Platform for Sustainable Natural Rubber

Establishing a Natural Rubber Procurement
Subsidiary in Singapore (2020)
SUMITOMO RUBBER SINGAPORE PTE. LTD., established in
Singapore—home of the world’s largest natural rubber market—
initiated operations in April 2020. This subsidiary strives to ensure
the sustainable procurement of high-quality natural rubber whileserving as a key base for promoting the Sumitomo Rubber Group’s
Sustainable Natural Rubber (SNR) activities. Currently, it is proactively
tackling human rights-related and environmental issues.

Monitoring Activity Undertaken by France-based
EcoVadis (since January 2021)
To improve our procurement activities, we have commissioned
EcoVadis, an external assessment firm specializing in monitoring andrating supplier performance with regard to human rights, governanceand the environment. We expect that third-party assessments
offered by this firm will help us unify our standards for supplier evaluations while enabling us to efficiently promote sustainability
activities among suppliers.

Initiatives to Improve Traceability and Support
Smallholders• Resuming the Pilot Project in Indonesia (since September 2022)
SUMITOMO RUBBER SINGAPORE has been undertaking the Pilot
Project in Jambi Province, Indonesia. Although the project had been
temporarily suspended in the face of the COVID-19 pandemic, thesubsidiary has now resumed it, once again launching such activities
as surveys to assess the status of natural rubber farms and their raw
material distribution routes, the provision of training to farmers andthe free-of-charge provision of fertilizers. Acting in collaboration withHalcyon Agri, a natural rubber supplier in Singapore, the subsidiarythus strives to support smallholders in a way that takes heed of theirreal-life circumstances and needs while assessing the status of natural rubber distribution routes as well as risks associated with natural
rubber supply. In this way, we push ahead with improving the traceability and transparency of our natural rubber procurement.
• Initiating Procurement through the Agridence Rubber Platform(since November 2022)
We initiated natural rubber procurement employing the Agridence
Rubber Platform provided by Singapore-based Agridence Rubber totrace natural rubber distribution routes, which are often complex.
This platform not only keeps us well-informed about the status of
natural rubber processors, it also enables us to trace upstream processes that take place in locations where natural rubber is produced.
• Funding Financial Assistance to the Capacity Building Projectin Thailand
We are providing financial assistance to the Capacity Building Project
undertaken by the GPSNR in Thailand to support smallholders. The
objectives of this project include helping farmers achieve higher
incomes and promoting Good Agricultural Practices (GAP).
•P roviding Training to Neighboring Farmers in Thailand
We support farmers operating in the neighborhood of Sumirubber
Thai Eastern Corporation Co., Ltd., one of the Sumitomo RubberGroup’s natural rubber processing bases. Specifically, we offer seedlings to them while sharing our knowledge of fertilization and otherfarming practices, with the ultimate goal of improving their standardsof living.
Integrated Report 2023

64

ESG Management Undertaken by the Sumitomo Rubber Group

Initiatives to Protect the Environment

Initiatives to Address Water Security Risks

Forestation Activities to Help Curb Global Warming

Business activities undertaken by the Sumitomo Rubber Group involve the use of water in the course of producing raw materials and manufacturing products. Accordingly, we have positioned appropriate water resource management as an important business issue that must be
addressed as part of our Long-Term Sustainability Policy.

Water Security Risk Assessment and Evaluation
The Sumitomo Rubber Group has been conducting assessments

In these ways, we will continue to perform risk assessments forbased on the Aqueduct Water Risk Atlas, a tool provided by the

our major production bases to determine which bases may be at

WRI.* In addition, we employ our own standards regarding legal

high risk and thereupon implement concrete countermeasures.

compliance, limitations on water intake and other items to conduct* World Resources Instituterisk assessments for our bases.

Reducing Water Intake Volumes and Recycling Wastewater
The Sumitomo Rubber Group is striving to reduce its volume of water intake and recycle wastewater, with the overall aim of addressing thedepletion of water resources worldwide. In summer 2020, our Turkey Factory became the first Sumitomo Rubber Group base to achieve a
100% factory wastewater recycling rate.

External Collaboration
Partnerships with Suppliers

Participating in the Water Project Sponsored by the Ministry

In line with the Sustainable Natural Rubber (SNR) Policy, which isof the Environment

integral to its Procurement Guidelines, the Sumitomo Rubber GroupIn conjunction with the enforcement of the Basic Law on the Water

strives to confirm the status of water resource preservation and other

Cycle in 2014, the Water Project was launched by the Ministry of thesustainability initiatives undertaken by suppliers through the utiliza-

Environment in order to maintain and restore the soundness of thetion of third-party assessment firms.

water cycle through industry-academia-government collaboration.

Progress in Greening Initiatives
Environmental Initiatives and Greening Initiatives Undertakenby the Sumitomo Rubber Group
Guided by the “Sumitomo Business Philosophy,” since the Meiji period, Sumitomo Group companies have been engaged in tree planting
at Mount Besshi—the desolated site of a former copper mine—in
Ehime Prefecture, striving to bring its natural environment back to
the original state. This spirit has been passed down to Sumitomo
Rubber Group, serving as a cornerstone for its endeavors.
“Sumitomo Rubber GENKI Forest,” a Green Initiative in Japan
The primary objectives of our forest development efforts include protecting biodiversity and preventing landslides and other disasters, alongwith curbing global warming through the absorption of CO2. In Japan,
we develop the forests around our business bases, engaging in greening activities in 11 locations (covering 32ha) across the country. We
collectively call these locations the “Sumitomo Rubber GENKI Forest.”
In order to protect biodiversity, we plant only seedlings grown fromseeds gathered in the target area. Although our 2022 activities were

somewhat restricted due to the need to prevent the risk of COVID-19
infection, we planted a total of 3,219 trees and provided 4,495 seedlings. Our forestation activities also include cutting back weeds, removing unnecessary trees and other ongoing forest maintenance tasks.
We also consider communicating with local communities throughsatoyama (working forests that are maintained and managed byhumans) conservation activities, another important objective. To alignour forestation activities with the circumstances unique to each local
community, we promote collaborative activities in which employees,
families, friends, local residents and regional organizations participate.
Greening Initiatives Overseas
In 2022, we planted a total of 3,326 trees and provided 9,385 seedlings. Furthermore, 2,400 trees were planted through the “1 Pair for
1 Love activities,” in which some of the proceeds from the sale ofrubber gloves are allocated to the DUNLOP Home Products Foreston the island of Borneo, Malaysia, in order to protect the orangutan,
an endangered species.

Sumitomo Rubber Industries has been a participant in this projectsince 2014.

Waste Reduction

Kouno Yama GENKI Forest managed by Izumiotsu
Factory (Osaka)

Initiatives to Preserve Biodiversity

Achieving Complete Zero Landfill Waste
The Sumitomo Rubber Group is promoting the 3Rs (reduce, reuseof landfill waste, meaning a 100% recycling rate and no waste sent

and recycle) of waste management.

directly to landfills.

In fiscal 2022, we achieved complete zero landfill waste at 23 production bases, including affiliates, in Japan and overseas.

In fiscal 2023, the aim of our efforts is to maintain the status ofcomplete zero emissions at these bases.

Complete zero landfill waste is defined as the complete diversion
Achievement Status of Zero Emissions at Production Bases (23/26)
Name of production base

65

Timing of achievement

Name of production baseTiming of achievement

Shirakawa Factory

2004

Malaysia Factory

2010

Nagoya Factory

2004

Zhongshan Factory, China

2008

Izumiotsu Factory

2005

Vietnam Factory2009

Miyazaki Factory

2004

Switzerland Factory

2008

Kakogawa Factory

2005

Thailand Factory (tennis balls)

2011

Ichijima Factory

2005

Thailand Factory (natural rubber processing)

2013

Indonesia Factory

2008

Dunlop Retread Service, Ltd.

2010

Changshu Factory, China

2006

Dunlop Retread Service Ltd. Hokkaido Factory

2010

Hunan Factory, China

2016

SRI Engineering, Ltd.

2008

USA Factory

2007

Nakata Engineering, Ltd.

2008

Thailand Factory

2009

Dunlop Golf Club, Ltd.

2006

Turkey Factory

2017

Integrated Report 2023

A tree planting activity undertaken at DUNLOP Home
Products Forest in Malaysia

The Group is involved in conservation activities focused on endangered, near threatened and rare species (five species of animal and
15 species of plant) at all eight of its sites in Japan, consisting of six
factories, the Head Office and the Tire Proving Ground. For example,
the Kakogawa Factory (Hyogo Prefecture) is engaged in transplanting “Fujibakama” (Eupatorium japonicum) cultivated on its grounds to
Kakogawa River beds as well as providing this plant to neighboring
corporations and cities. Meanwhile, the Ichijima Factory (Hyogo
Prefecture) strives to preserve the great purple emperor (Sasakia

Kobe Mount Rokko GENKI Forest
Native grown Japanese bellflower

charonda), a designated national butterfly, and the tiny loach fish
Lefua echigonia (Cobitidae family). The above butterfly was also
found to be emerging successfully on the premises of the Okayama
Tire Proving Ground. In “Kobe Mount Rokko GENKI Forest,” we are
currently striving for the preservation and breeding of the Japanese
bellflower, a rare species. Having collected seeds from native grown
flowers, we have nurtured seedlings and transplanted them to areas
where we engage in conservation activities.

Okayama Tire Proving Ground
Great purple emperor butterfly

Integrated Report 2023

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