S UMITO MO R UBBER GR O U P C S R R epo r t 2014

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

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

TEL.+81-78-265-3001 FAX.+81-78-265-3114

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

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

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

2014.9 235

Contents

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

03
07

Sumitomo Rubber Group’s Business ........... 03
Philosophy System ............ 05
Feature Go for NEXT
Developing Environmentally Friendly Products..................... 07

World First
100% Fossil Resource-Free Tire: ENASAVE 100
CSR in Emerging Countries

What we can do to create a sustainable society;..................... 11

Coexistence

Create new value for more comfortable and appealing lifestyles for people all

Business in Harmony with Emerging Countries’ Environment and Regional Needs

over the world through our daily business practices and by providing

Spreading Damping Technology ..................... 15

high-quality products that are both safe and environmentally friendly.

Protect

Continuing to be a company whose existence is truly valuable, both for people

Protecting People and Their Homes From Earthquakes.
MIRAIE Residential Seismic Damping Unit

and for the environment—this is the kind of CSR management that
the Sumitomo Rubber Group aims to achieve.

17 Becoming a Truly Valuable Company Taking On
Top Commitment

New Challenges for Future Generations

19

CSR Activity Report
Sumitomo Rubber Group CSR ............ 19
Targets and Results for
Sumitomo Rubber Group CSR Activities .......... 21

Green
Ecology
Next
Kindness
Integrity

Green Initiative ......... 23
Ecological Process .......... 25

Next-Generation Product Development .......... 29
Kindness to Employees .......... 31
Integrity for Stakeholders ........ 35

Stakeholder Dialogue .......... 39
Site Report ..................... 43
Materiality of CSR Activities ..................... 45
Independent Verification Report /Third Person’s Comments .............................. 47
Honors and Certifications from Outside Organizations /Editorial Policy ......................... 49

Sumitomo Rubber Group
Tire Business

01

SUMITOMOMITOMO RUBBERR BBER GROUP
RUBBE
GROU
G
OUP CSR REPORTRE ORT 2014201

Sports BusinessIndustrial and other products Business

SUMITOMO RUBBER GROUP CSR REPORT 201402

Main Financial Indicators

CSR-Related Indicators

GreenNet Sales
8,000(¥100 million)

6,769

7,102

7,806

6,045

6,000

Operating Income (consolidated)

Net Income (consolidated)

800

500

771

(¥100 million)

697

600

2,454

4,062
3,481 3,989

4,489

0

200

2010

Consolidated

2011

2012

2013

(Fiscal Year)

Non-consolidated

15.00

25,000(Unit: 10,000 trees)

100

2010

2011

2012

2013

2010

2011

2012

2009

(Fiscal Year)

Breakdown of Net Sales
by Business Segment

Breakdown of Net Sales by Region

10,000Industrial andother products business

Others

8,675
7,375

6,222 6,716
6,000 6,132

Sports business

4,000

8.5%
Tire business

2,000
0

1,870 1,897 1,977 2,442

3,298

2009

2013

Total Assets

2010

2011

2012

Stockholders’ Equity

11.9%

4.3%

Japan

48.9%

(as of the end of
December 2013)

87.2%

8.5%
U.S.A

2010

2011

11.4%

Dunlop Sports Co., Ltd. is our central
group company in the manufacture
and marketing of golf clubs and balls
and tennis racquets and balls. We
provide golf products worldwide
under the SRIXON, XXIO, and Cleveland Golf brands, and our tennis
products include the SRIXON andDUNLOP brands.

Production factories
Japan (Shirakawa, Nagoya, Izumiotsu,
Miyazaki), China, Indonesia, Thailand, Brazil,
South Africa
Production companies
11 consolidated subsidiaries, 7 affiliates
Sales companies
29 consolidated subsidiaries, 7 affiliates
Tire test courses
Okayama, Nayoro, Asahikawa
R&D facility
Tire Technical Center

Production factories
Japan (Ichijima, Miyazaki), Indonesia,
Thailand, U.S.A.
Production companies
4 consolidated subsidiaries, 1 affiliate
Sales companies
10 consolidated subsidiaries, 2 affiliates
R&D facility
Golf Science CenterNorth America R&D Center

3.00

5,000

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

19,274 19,539

2009

2011

0
2009

2010

2011

Integrity

2012

2013

(Fiscal Year)

2010

2012

2013

(Fiscal Year)

Integrity for Stakeholders

12

Industrial andother products business

24
3
19
18

18
3

(Cases)

21

11

10

1
5

2,400

5

9

6,801
Cases

18,676 Cases

6

15
10

Tire business

Cases

8

8

15

(as of the end of
December 2013)

48
Sports business
0

0
2009

2010

2011

2012

2009

2013

Women

(Fiscal Year)

2010

2011

2012

2013

(Fiscal Year)

9,475

Cases

People and Society Worldwide
Global Network

Group Overview(as of the end of December 2013)

consolidated subsidiaries

Europe, the Middle EastJapan
and South Africa

73affiliates

Company name
Sumitomo Rubber Industries, Ltd.

27
12

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

Japan
Asia

Europe1909
Paid-in capital

MiddleEast¥42.7 billion
Consolidated net sales¥780.6 billion

South
AfricaNorth
America

Latin
America

7
4
SUMITOMO RUBBER GROUP CSR REPORT 2014

10,000(Fiscal Year)

U.S.A. & Central andSouth America

03

6.00

Asia

19.3%

Sumitomo Rubber Group’s Business Activities Energize
Sports Business

15,0002013

Kindness to
Employees(No. of people)

Men

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

9.00

21,822

17,983 18,698

25

1(Fiscal Year)

Tire Business

20,000

Number of Counseling Cases for
Customers by Business Segment15(as of the end of
December 2013)2012(Unit: Million yen)

Number of Alerts or Counseling Cases
to Compliance Counseling Room

20

¥780.6 billion

14.12 14.64 14.21

Number of Employees Using
Childcare Leave System

Europe¥780.6 billion

12.20

13.21

0

2013

Total Assets, Stockholders’ Equity(consolidated)
8,000

12.00

20.7

Kindness(¥100 million)(Unit: 10,000 trees)0
2009(Fiscal Year)

139.5

91.0

91

0
2009

129.8

50

100

0
2009

150

214

200

287
2,000

Next-Generation
Products Development

R&D Expenses

284

400

Next

Number of Retread Tires Produced

119.1

355
300

476

4,000

448

Ecological Process

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

400

539

5,245

(¥100 million)

Ecology

Green Initiative

Oceania(as of the end of December 2013)

Number of employees (consolidated)

Asia and Oceania

28
7

26,773
Consolidated subsidiaries
69 (of which 27 are in Japan)
Affiliates
26 (of which 12 are in Japan)

SUMITOMO RUBBER GROUP CSR REPORT 201404

Philosophy System

Sumitomo Rubber Group

Company Philosophy andCSR Philosophy
Ever since its founding as Japan’s first modern rubber plant in 1909, the Sumitomo Rubber Group has always
strived to offer attractive products throughout a history of changes and challenges. throughout this history,
certain ideas, including the Sumitomo Business Spirit, which has been formed and refined throughthe course of Sumitomo’s long history, the Dunlop Spirit of Innovation and our own uniquefree-spiritedness, have formed the backbone of our group.
The Sumitomo Business Spirit reflects Sumitomo’s strong sense of mission andcommitment to improving society: our business is not only for the benefit of
Sumitomo, but for the benefit of the nation and society as well.
This spirit underlies our Group’s corporate philosophy.
We firmly believe that corporate social responsibility
is simply a matter of putting the Sumitomo
Business Spirit into practice.

Basic Philosophyof CSRThe Sumitomo Rubber Group’s GENKI Activities
are energeticcontributions to the environment andcommunities, focusing on being both a trusted
corporate citizen and part of a sustainable society.

Group Philosophy

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

Action Tag Line forthe Long-Term Vision
In 2012, we developed VISION 2020, a new long-term vision of the Sumitomo
Rubber Group up to 2020, with a new slogan: “Go for NEXT.” Under thisnew vision, we will strive to meet new challenges, in addition to providing
the “world’s best value,” to fulfill our corporate social responsibilities bybecoming a true global player and achieving both high profitability andhigh growth, and to pursue increased value for all stakeholders and greater
happiness for all employees.

Meet customer expectations with ever-improving productquality, manufactured based on careful observation ofwhat is happening in the market.
Create new possibilities for the future by adapting tochanging times while maintaining a sound businessfoundation.

The SRI Wayay

The Sumitomo
Business Spirit

In 2009, the Sumitomo Rubber Group celebrated the 100th anniversary of its
founding. In order to achieve another century of even greater growth, weformulated the SRI Way so that the values and principles of action that wehold so dear could be known and understoodsystematically by people
throughout the world. With the expansion of our business scope and operational scale, including a rapidly growing number of overseas bases, aneverincreasing number of people, each with their own diverse values, havenow become involved in our Group’s business activities. We believe that it isessential for us not only to share a common set of values and ideas as thebasis for employee decisions and actions, but to also standardize the way inwhich our work is carried out so that we may strengthen the overall solidarity of the Group and thereby continue to offer products and services ofconsistently high quality worldwide. By reaffirming these values andprinciples of action as core values of our corporate culture, we aim to revitalize our CSR activities and earn the trust of society.

Placing importance on integrity and sound management (Shinyo-Kakujitsu)
Respect for human resources Attaching importance to technology
Harmony with public interests
05

SUMITOMO RUBBER GROUP CSR REPORT 2014

Make the most of proprietary technologies and advanced
research and development to create new products andservices to meet customers’ changing needs.
Take responsibility for environmental protection in all ofour business activities and continue to develop eco-friendly
technologies.
Create an attractive workplace that helps employees toachieve their lifestyle needs.

ValuesIntegrity &Soundness
Communication

Dedication toLong Term Goals

Personal
Development

Practical Guidelines
Customer first
Direct confirmation
Scientific approachContinuous improvement
Inter-personal concern
Face to face communication
Report, liaise and consult
on all levels
Break the status quo withcritical thinking
Know your limitations andset benchmarks for better
performanceOn-the-job-training
Accomplish goals andtargets through teamwork

Long-Term Vision

Aim to be a company that provides the World’s
Best Value in all of our fields of business.
Long-Term Vision Action Slogan

Go for NEXT

Become a true global player by achieving both high profitability and high growth.
Pursue increased value for all stakeholders and greater happiness for all employees.

Growth Engines for Achieving
Our Goals / New Challenges
The Challenges of
New Markets

Insatiable Drive forInnovation

Entering
New Business Fields“The World’s Best Onsite Operational Skills,Researchand Development Capabilities and Technical Skills”“The Best Profitability
in Our Industry”

The SRI WAY“Integrity and Soundness” “Communication” “Dedication to
LongTerm Goals” “Personal Development”

SUMITOMO RUBBER GROUP CSR REPORT 201406

How Can Tires Contribute to the Environment?

Next Step After Releasing ENASAVE 97:
Use Biomass Materials to Replace
the Remaining 3% of Fossil Resources

Young Engineers Proposed a Tire Free From
Fossil Resources, the Ultimate Eco-Friendly Tires
Sumitomo Rubber Industries has a uniquegathering of young engineers at which
participants come up with mediumterm plans. In 2000, one of their ideas
was for a tire that uses 100% non-fossil
resources.
Generally, 56% of a tire is composed of fossil resources. Completely
eliminating these fossil resources from atire is no easy task. But the young engiChief components
of a standard tire

Average component
make-up of
a Sumitomo Rubber
Industries passenger
car tire(Size: 195/65R1591S)

Fossilresources

Fossilresourcefree

56% 44%neers and management were determined. They believed that if they could
succeed their tire could shake up theworld. It would be a significant project
for a company that had been the industry leader since making Japan’s first
domestic automobile tire back in 2013.
In 2001, a project team was appointed.
The project team began by
selecting current natural materials andexisting products made from natural
material that could be substituted forfossil resources. And if they substituted natural rubber for synthetic
rubber, they had to makeup for the drop in performance by modifying the existing
natural materials sothat the new tire would perform better
than the current standard tires. In 2008,
we released ENASAVE 97, a 97% Fossil
Resource-Free tire.

Once the ENASAVE 97 was released, theproject team got to work on its real goalof bringing to market a 100% fossil
resource-free tire. The problem was,however, that there existed no natural
substitutes for the remaining 3% of thetire composed of fossil resources. It
would be a tough assignment since theywould need to create new materials fromscratch using biomass.
The ENASAVE 97 was 97% fossil
free resources, but the majority of theremaining 3% of the tire played a crucialrole in tire performance; for example,
antioxidants that prevent tire
degradation, vulcanization
accelerators that give thetire resilience, and carbon
black that improves tireFeaturestrength. In particular, aromatic compounds are indispensable to antioxidants and vulcanization accelerators.
They can be easily synthesized frompetroleum components, but they had
never been made from biomass. A roughroad lay ahead. Through trial and error,
using biotechnology, mineral catalysts,
and other proprietary methods, theThe road to 100% fossil resource free

Go for NEXT

Natural alternatives
Natural materials, existing
natural material-based products

Developing Environmentally Friendly Products

Modifications

The World First*1

Use biomass* to create totallynew natural materials*Main biomass: Corn, pine oil, rapeseed oil

Rapeseed oil
The Voiceof Our
Employees

The World’s first
100% Fossil
Resource-Free Tire

100% AA

19%

I Want to Help Reduce Environmental Impact
Through Biomass Technology

Takao Wada
Manager, Material Research &DevelopmentHQ.,
Material Planning Department.
Sumitomo Rubber Industries, Ltd.

Pine oil

Improvement in Wear Durability * 2

fossil resource free

Synthetic alternatives

At Sumitomo Rubber Industries, we want to protect
the environment so that it can be enjoyed by future generations.
That’s why we embarked on development of a 100% fossil resource-free tire.
In 2013, 100 years after we made Japan’s first domestic automobile tire,
we released the ENASAVE 100, ultimate eco-friendly tires.

Low rolling resistance

100%

Modify natural rubber toboost performance

100% Fossil Resource-Free Tire: ENASAVE 100

Fossil resource freeteam finally succeeded in making an
aromatic compound from biomass.
They also had to find a substitutefor carbon black, which is derived fromthe incomplete combustion of coal andoil. The team carried out test after test,
mixing and matching the raw materialsof various biomass resources undervaried combustion conditions. Whatthey came up with was biomass carbon,
a viable substitute for carbon black.
By the time they had procured thenecessary technologies and had theirgoal within sight, it was late 2010,
about three years since they embarked
upon the quest to eliminate the remaining 3% of fossil resources.
With the finished work within theirgrasp, the project went straight to work on
trials and the following year at the 2011
Tokyo Motor Show they exhibited a prototype of a 100% fossil resource-free tire.
Using absolutely no fossil resources, thisultimate eco-friendly tires created quite a stir.

Corn

When we first launched this projectteam, some people wondered if we
could really accomplish our goal. There
were many difficult obstacles in our way,
but we always managed to find our way
around them by banding together andsticking to our conviction that, no matter
what, we were going create the world’s
first 100% fossil resource-free tire.
My work on the ENASAVE 100
project team taught me that what may
seem impossible at first can be achieved
if you keep on trying and never give up.
I want to leverage this experience andcarry out further research into biomass
technology so that I can help reduce
environmental impact.

*1 Since the use of synthetic rubber became the industry standard (based on Sumitomo Rubber Industries own research)*2 Compared to Sumitomo Rubber’s previous model

07

SUMITOMO RUBBER GROUP CSR REPORT 2014

SUMITOMO RUBBER GROUP CSR REPORT 201408

Mass-Production of ENASAVE 100 Required
Creation of Highly Functional Biomass Materials
In 2011, while we were making a prototype, we began construction of amanufacturing plant to mass produce
the ENASAVE 100. In November 2013,
significantly 100 years after we produced Japan’s first car tire in 1913, wereleased a world first*, the 100% Fossil
Resource-Free Tire, ENASAVE 100, containing absolutely no fossil resources
such as petroleum and coal.
But there’s more to the ENASAVE
100 than just being fossil resource free.
This tire also offers improved performancewith good fuel efficiency, superior wet
braking, and a smooth ride for passengers. And besides a new jointless band
made from plant-based materials which
reduces burden on the tread rubber, ENASAVE 100 adopts a new tread patterndesign and profile. Abrasion resistance is
19% higher than the ENASAVE 97, resulting in longer tire life and thus the use of
fewer resources in the long term.
The successful development of
the ENASAVE 100, which offers environ-mental performance in terms of raw
materials, fuel efficiency, and resource
efficiency, as well as basic tire performance, proves that biomass materials
hold the key to enormous possibilities.

*Since the use of synthetic rubber became the industry
standard (based on Sumitomo Rubber Industries own
research)

Further commercialization of biomass materials

Take clean technologies even further

Greater performance
More applications

Highly functional
biomass materials

100%

fossil resource
freeFeatureGo for NEXT
Developing Environmentally Friendly Products

We were able to procure new proprietary biomass material technology
thanks to the use of biomass in thedevelopment of the ENASAVE 100 envisioned by our young engineers. At Sumitomo Rubber Industries, we plan to takethese acquired technologies even further
and discover even greater possibilities
for biomass materials. By improving performance and expanding the fields ofapplication, we are working towards
commercialization of highly functional
biomass materials, with the first generation scheduled for release in 2016 andthe second generation in 2020.
Our quest to write the future historyof tires is a never-ending project.

2013

First

generation

Highly functional
biomass materials

Secondgeneration

2020

2016
Proprietary biomass material technologies obtained
through development of ENASAVE 100:
Advance and commercialize these biomass technologies

The Voice of Our Stakeholders

09

A Turning Point in
Global Motorization

Making Biomass Materials
for Tires Extremely Significant

Lead the Industry Worldwide ThroughBiomass Materials Development

A Shared Passion,
Mission Accomplished

Mr. Toshiyuki Nishio

Mr. Akihiro Okubo

Mr. Teijiro Nishitani

Mr. Tadao Narusawa

General Manager, Industrial High
Performance Fiber Production andTechnical Development Dept.
UNITIKA Ltd.

Manager, Functional Materials Group,Technical Development Center,Research and Development Division.
GUNEI Chemical Industry Co., Ltd.

Executive Officer,
General Manager,
Carbon Products Dept.
Mitsubishi Chemical Corporation

Director,
Specialty Chemicals Sales &Marketing Division.
Toray Fine Chemicals Co., Ltd.

With the industry trying to makecars less dependent on petroleum,
the successful creation of technologies for making a 100% fossil
resource-free car tire represents aturning point in the evolution of
motorization around the world.
Tires normally represent a typicalexample of a compound material
product that is difficult to recycle.
However, I hope to see Sumitomo
Rubber Industries now take on thechallenge of recycling tires.

During joint development, Sumitomo Rubber Industries achieved ahighly functional and highly reliable
product by studying rubber compounding that would make themost of our company’s resin, and by
conducting experiment after experiment on the physical properties.
I think that it’ s highly significant
that Sumitomo Rubber Industries
was able to prove that biomass
material can be applied to productsthat need to be highly functionaland reliable. I would like to see
the company spread the use of
biomass-based tires worldwide.

Our company worked with Sumitomo Rubber Industries to develop aplant-based version of carbon black,and through much hard work a
product was created that boasted
minimal degradation and performance superior to that of mineral-based carbon black. The development and commercialization of
biomass materials represents asignificant contribution to a recycling-oriented society. Tires require
the highest level of performance,and I hope that with this world-firstdevelopment of biomass materials
for tires Sumitomo Rubber Industries continues to be the engine ofprogress for the industry.

Our company was in charge ofmanufacturing and procuring theantioxidants and vulcanization
accelerators. We faced numerous
challenges in delivery, distribution,
quality, and other areas, but all thewhile we shared Sumitomo Rubber
Industries’ passion for this project
and as a result it was mission
accomplished. Highly functional
biomass materials hold promise forapplication in a range of other areas
beyond tires.

SUMITOMO RUBBER GROUP CSR REPORT 2014

Team ENASAVE Future ProjectProtecting the Environment around Mount Fuji,
The World Cultural Heritage for Children to
Enjoy 100 Years From Now
Since 2009, a portion of the sales proceeds fromENASAVE fuel-efficient tires has gone to supporting Team ENASAVE mangrove planting activitiesin Thailand, Indonesia, and other countries.
In 2013, we began similar environmental
protection activities in Japan with the goal of passing on our country’s beautiful nature and traditional culture to children 100 years from now. These
activities are headed by our Team ENASAVE
Future Project, which works in cooperation with
the National Federation of UNESCO Associationsin Japan (NFUAJ). In October 2013, we teamed
up with the Oshino UNESCO Association to conduct a joint clean-up of Oshino Hakkai, one of theproperties of “Fujisan, sacred place and source ofartistic inspiration”, inscribed on the UNESCOWorld Heritage List as a Cultural Heritage.
In 2014 and beyond, we are supporting theHeritage for the Future movement of the NFUAJ
by taking part in environmental protection activities around the country.

The Voiceof OurStakeholders

Pass On Our Vanishing Cultural and Natural Properties

Mr. Akihito Terao
Secretary General
National Federation of UNESCO Associations in JapanDue to problems like depopulation of outlying areas, lower birthrates, and an
aging society, it is becoming increasingly difficult to protect and pass on thevaluable cultural and natural properties that our ancestors worked so hard topreserve for us. In 2009, the National Federation of UNESCO Associations inJapan (NFUAJ) launched “the Heritage for the Future movement“ to preserve
local natural and cultural properties and pass them on to future generations.
We want others to understand and join us in this initiative and we hope towork together with like-minded partners in finding a way to preserve these
local treasure.
Sumitomo Rubber Industries’ Team ENASAVE Future Project is a marvelous way to build a future by having employees carry out ongoing physicalvolunteer work that allows them to discover the value of the culture andnature that is near and dear to them. Each volunteer activity is just a small
step, but taking many such small steps for the next 100 years will allow thepeople living a century from now to live in a pleasant society with a rich andspiritual culture.

SUMITOMO RUBBER GROUP CSR REPORT 201410

How Do We Meet Future Tire Market Needs?

Business that Meets Market Needs andRegional Conditions of Emerging Countries
Global tire demand is growing at an
average of 4% a year and by 2020 is
expected to reach approximately 2billion tires. Growth is especially skyrocketing in China and other emerging
countries, which many believe willaccount for more than half the world’ stire market in 2020.

Overall Net Sales and Percentage in
Emerging Markets
Against this background, the Sumitomo Rubber Group is making entry
into emerging country markets andbusiness expansion in China key
medium-term growth strategies
towards attaining the targets of
VISION 2020.
To make inroads into emerging country markets, we aim to

12,000(100 million yen )10,000
8,000
6,000

20%

11% 14%0

2011

2020 (FY)2015

build manufacturing plants in countries
where demand growth is predicted sothat we can expand sales there. In July
2011, the Sumitomo Rubber Group established a plant in Brazil, its first in Latin
America. Operation started in October
2013. In July 2012, operation began at
our second factory in China as part of ourstrategy to grow business in that country.
However, in pursuing business, it isimportant that we respond to regional
challenges and needs by ensuring thatour business spurs local economies andcontributes to the betterment of the local
environment and society.

in Brazil

we have ongoing leadership training for
managers and supervisors, and plans arefor continuing and expanded training.
These and other efforts allowed us toachieve a monthly average job turnoverrate of 2.06% during 2013, lower thanBrazil’s national average. There are 23
locals in management positions, representing 4.0% of all managers. By creating
attractive jobs, we hope to contribute toeconomic development both locally andthroughout Brazil as a whole.
We also contribute to society byachieving the legal employment rate fordisabled persons and young persons in job
training programs.
We will continue building good relations with the local community andnearby companies, with plans that include
creating a biotope on the company premises, allowing locals to use the company
soccer field, encouraging employees to docommunity volunteering, and putting ateam in the local company soccer league.

Creating Attractive Jobs in Brazil andTraining Human Resources
Brazil is said to be the largest tire market
in Latin America. While economic growthis expected to come from the 2014 FIFA
World Cup and the 2016 Summer Olympics, the country also has problems,
including a high job turnover rate and alarge number of informal laborers with noguaranteed job benefits.
At Sumitomo Rubber do Brasil Ltda.,
which opened in October 2013, we
had these problems in mind as we
focused on creating attractive job
opportunities.
We plan to increase thenumber of the company’s
employees by 2.5 times by
the end of 2015 toexpand produc-tion volume. As of the end of fiscal 2013,
95.8% of the workforce was locally hired
as we tried to hire people living near thefactory and from neighboring cities.
We have also focused on training
human resources in order to boost local
employees’ skills and raise the worker
retention rate. For example, we have ascholarship system to support employees
going to university and other studies, andFeatureGo for NEXT

Expanded Training Programs
for All Employee Levels

The Voiceof Our
Employees

CSR in Emerging Countries

Jonatas Turossi
Sumitomo Rubber do Brasil Ltda.

Coexistence

Here at the Brazil factory we arefocusing on training for new
employees, current managers, andmanager candidates. We also strive
to give employees in each company division the skills and knowledge they need by arranging
training outside the company.
We plan to gradually
expand training courses foreach job level. And of course
we will continue efforts tomake the “Sumitomo Rubber
Way” an integral part of every
employee’s work philosophy.

Business in Harmony with Emerging Countries’
Environment and Regional Needs

The Sumitomo Rubber Group must make inroads into emerging countries if it is to continue growing.
To ensure that our group and the region where we operate both develop and grow,we make CSR a pillar of our business activities.
Predictions for the Tire Market in 2020
Tire demand(Unit: million tires)(Against 2011)

Russia

China

59

350

(136%)
Europe(173%)The U.S.

India

133

417

Japan

(248%)(112%)

98

391(114%)(90%)

Near andMiddle East

72

109

(160%)(158%)

Africa(165%)

Oceania

14054(126%)(141%)

Source: Japan Automobile Tyre Manufacturers Association, Inc. (JATMA)

11

SUMITOMO RUBBER GROUP CSR REPORT 2014

Latin
America

145

ASEAN

No. of Tires Produced in Brazil
No. of Employees

Overview of Brazil Factory
Name: Sumitomo Rubber do Brasil Ltda.
Location: Fazenda Rio Grande, Paraná
Established: July 2011
Opened: October 2013

Locals as % of
all employees

Locals in management
positions

95.8% 23

(No. employees)(Tires/day)

1,500

20,00015,000 1,250

15,0001,000

10,000
5,000

1,250

2,000 565

750
0

0

2013

2015 (FY)SUMITOMO RUBBER GROUP CSR REPORT 201412

Feature

Go for NEXTCSR in Emerging Countries

in China

Aiming to be Sumitomo Rubber’s
Most Energy-Efficient Overseas Factory

FeiHui Duan
Environmental Team,
Engineering Section
Sumitomo Rubber (Hunan) Co., Ltd.

The Voiceof Our
Employees

We are working to make the Hunan
nan Factory
Sumitomo Rubber’s most energy-efficient
overseas factory. To achieve this, we pay
particular attention to making sure energy
travels effectively from the energy source tothe plant machinery. We study outstandingcase studies in the Sumitomo Rubber Groupand do everything possible to improveequipment so that we can recover and use
waste heat.
We will continue to improve equipment to use energy more efficiently while
also raising awareness of the importance ofenergy saving among employees.

Employees Doing Community Service

819
The Voiceof Our
Employees

Overview of Factoryin Hunan, China
Name: Sumitomo Rubber(Hunan) Co., Ltd.
Location: Changsha City, Hunan Province
Established: September 2010
Business: Production and sale ofautomobile radial tires
Opened: July 2012

Production Capacity of Chinese Market
80,00030,00015,000(Tires/day)
60,000

Hunan
Factory

40,00020,0000Changshu
Factory

Ge Huang

20132016 (FY)13

SUMITOMO RUBBER GROUP CSR REPORT 2014

was made possible through measures
including reducing the amount of heavy
oil consumed by adopting low-combustion burners for the boilers, and reducing
energy loss by improving the insulation of
all pipes in the factory.
We also have reduced waste by
reducing the amount of tire scrap, resulting in the achievement of zero emissions*as of February 2014.
We will continue to set and reach

Sales Target in Chinese Market

CO2 emissions per unit ofproduction against previous year

29.2% reduction
Achieved zero emissions

Environmentally Friendly Manufacturing in China,a Huge Tire Market on the Scale of Europe and North America
By 2020, China is expected to account for
about 15% of the world’s tire demand,joining Europe and North America asanother enormous world market. Whilethe country is enjoying skyrocketing economic growth, it also has some serious
environmental problems to deal withincluding air and water pollution.
In July 2012, we opened our second
Factory in China, in Hunan, where ourconcept was an environmentally friendly
Factory in harmony with its locale. We
took a major step towards environmentally friendliness as we were certified for ISO
14001 in December 2013. We haveinstalled the latest non-polluting machinery and we carry out regular employee
patrols to raise environmental awareness.
In fiscal 2013, we managed toreduce CO2 emissions per unit of production by 29.2% over the previous year. ThisStore Manager,
Dunlop Store, Nanning City,
Guangxi Province

Environmental Performance of
Hunan Factory (Fiscal 2013)

February 2014

36,0002011

Working with Dunlop to Build
the Region’s No. 1 Tire Retailer

even higher targets as we make our factory
increasingly environmentally friendly.
We plan to double tire production
volume at the Hunan Factory by the endof fiscal 2016 to reach 30,000 tires a day.
To this end we are rapidly expanding ourworkforce, and it seems that every montha new group of employees joins the factory.
It is important that these new employees
quickly grasp our environmentally friendly
factory concept and acquire a high levelof environmental awareness. One way weare doing this is having new employees
volunteer in cleanup activities in neighboring Xingsha Park as part of theirorientation training. We plan to have all
employees take part in such local cleanup
efforts.
*Zero emissions: Less than 1% of final waste
generated goes to landfill and more than 99% isrecycled.

3,000(Unit: 10,000 tires)
2,000

Trainees at Shanghai Tire
Sales Training Center2014 target: 864

37

1,300

2,000

1,000

0

2013

2015 (FY)At the Shanghai Tire Sales Training Center, I
learned how to deal with customers and sell
products through case studies and practice.
Dunlop has a high level of training; it was
tough to realize how much I needed to learn,but everyday brought new discoveries.
I will continue to put into practice what I
learned and, like at the store that is attachedto the training center, provide a high level ofservice with regards to not just tires but alsooil, batteries, car washing and other service
aspects, working with Dunlop to make ourstore known and loved by locals as No. 1 inour region.

Community Service Creates Harmony with Local Society
The cleanup of a local park is an important way to create harmony between the
Hunan Factory and local society. Besides
the cleanup, employees also take part inmonthly traffic safety education activities

on the streets of Xingsha. Through suchongoing grassroots activities, we hope tobecome better known and understood in
the community and create harmony withlocal citizens.

Other volunteer activities including
visits to seniors’ homes and elementary
schools to play games, help clean up, anddonate stationery and other gifts.

Shanghai Tire Sales Training Center Boosts
Customer Interaction and Servicing Skills
We are improving our ability to sell as wellas make tires. To increase sales in China, itis crucial that we provide truly satisfying
customer service. To this end, Sumitomo
Rubber (China) Co., Ltd., our tire production and sales subsidiary in China, opened
the Shanghai Tire Sales Training Center in
October 2013.
The center hosts a range of courses tomeet the specific needs of retail outlet
managers, engineers, and sales staff withtraining that boosts participants ability todeal with customers, carry out the servicing
process, use technological skills, andmanage a store. Attached to the center is astore that carries out actual sales activities,
which allows trainees to immediately put
what they learn to work as they receiveon-the-job guidance in not just changing
tires but oil as well, along with car washingand other car servicing skills.
The Shanghai Tire Sales Training Center

will continue to meet an expanding range ofcustomer needs in its mission of helping
retail outlets become known and loved intheir respective communities, thus bringing
a higher level of satisfaction to customers.
SUMITOMO RUBBER GROUP CSR REPORT 201414

What Can We Do to Protect People’s Homes From Earthquakes?

Earthquake-Proofing for Wooden Houses,
Which Account for About 90% of Newly Built Homes
The result of years of research and development, our high-damping rubber converts kinetic energy into heat energy
more efficiently than standard rubberand subsequently absorbs that energy.
The seismic damper represents the application of this feature in a product thatabsorbs the vibration caused by naturalforces such as earthquakes and wind.
Sumitomo Rubber seismic dampers have
Structure of Newly
Built DetachedHouses
Housing start statistics
for 2013 of the Ministry of Land, Infrastructure, Transport andTourism (MLIT) (Documents show that 88%
of newly built detachedhouses are wooden)

Non-Wooden
Houses12%

WoodenHouses88%

been installed on large bridges and otherlarge-scale infrastructure projects inJapan and other countries.
With large-scale earthquakes predicted to occur, it is extremely importantthat society find a way to protect wooden
houses. In the Great Hanshin Earthquakeof 1995, many people lost their lives as
their wooden homes collapsed. The
Great East Japan Earthquake of March2011 differed from the 1995 earthquake
in that most lives were lost due to thetsunami; still, the 2011 disaster reminded
us once again of the dangers from major
earthquakes.
Today, about half of the newly built
homes in Japan are wooden, and the figure
is 88% when looking at detached houses
alone. We have experienced both of thedisasters mentioned here, at our head officein Kobe and our factory in Shirakawa City,
Fukushima Prefecture. To protect the many
people living in detached wooden houses
today, we have been developing a productthat we released in March 2012, a seismic
damper for wooden houses. We
named the product MIRAIE, a combination of the Japanese words
for “future” (MIRAI) and“house” (IE), symbolizing
a house that provides
peace of mind formany years.

Expanded Lineup of Affordable Products
Means Peace of Mind for More People
Structures accumulate damage from the load
placed on them by earthquakes, but MIRAIE
absorbs up to 70% of the seismic vibration tolimit damage, thus protecting the value of thehouse. As well, by adopting a special structure and adhesion method, MIRAIE offers
many years of durability and makes periodic
maintenance unnecessary, thus providing
continuous protection over time for thehomes that users value so much.
And we want the peace of mind provided
by MIRAIE to be available to as many people
as possible. That’s why we focus on
making products that are lightweight, require minimal work
during installation, and can be
manufactured cost-effectively. We also sell
directly to building
contractors to“The product exterior looks good, whichmakes customers more willing to buy it.”
We are also working hard to expand the
MIRAIE product lineup. In March 2013, wereleased MIRAIE 2x4 for 2x4 wood homes, in
October 2013 we released New model
MIRAIE, a version modified based on building
contractors’ advice regarding things likedesign and specifications, and in May 2014
we released New model MIRAIE 2x4 withimproved ease of installation and design.
As of fiscal 2013, MIRAIE products had
been installed on a cumulative total of 4,361
buildings.

keep middleman costs down. Opinions frompeople working on the actual installation of
MIRAIE are fed back to our development team
to modify and improve the product, leading to
improvements like lighter weight to makeinstallation easier. Here are some of the things
our building contractors are saying about
MIRAIE: “Watching videos of the shaking table
test showed us how well MIRAIE performs andboosted the product’s reliability in our eyes,”

No. of Buildings Using MIRAIE (Cumulative)

26,75030,000(No. of buildings)

Target20,00010,000011,7504,361 Target
1,080
2012

2013

2014

2015 (FY)

FeatureHow MIRAIE Works

Go for NEXT

High-damping rubber
absorbs vibration

Spreading Damping Technology

Protect

Converts kinetic energy into heat energy
and subsequently absorbs that energy.

Linked tightly topillars right fromthe foundation

Protecting People andTheir Homes From Earthquakes.
MIRAIE Brand Vibration Control
Units for Housing

Earthquake vibration is concentrated in
the damper.

The Voiceof OurStakeholders

Durability*2

70% Approx.90years

Max.

*1 Figure based on shaking table test results.

15

SUMITOMO RUBBER GROUP CSR REPORT 2014

Hiroshi Matsushita
President and CEO
Matsushita Home Co., Ltd.

A majority of the detached houses in Japan are made of wood.
Being headquartered in Hyogo Prefecture, we experienced
the Great Hanshin Earthquake of 1995, which may be one reason
for our resolve to protect people and the property that is so dear tothem from earthquakes. We have developed a residential seismic
damping unit and we are constantly expanding the product lineup.

Absorbs seismic vibration*1

Users in Areas Affected by the March 2011 Disaster Praise Our Homes
That Come Standard with MIRAIE

Matsushita Home is a housing company
doing business mainly in Ibaraki Prefecture.
Our MAMORIE homes come equipped with
Sumitomo Rubber’s MIRAIE, and we
explain to potential customers the possibility of future earthquakes with even more
destructive power than the Great East
Japan Earthquake of March 2011.
The MAMORIE home has been popularwith customers for its ability to satisfy theirpost-disaster needs to be protected fromcalamity and to have energy, economic
stability, and good physical health.

*2 Figure based on accelerated deterioration test results.

SUMITOMO RUBBER GROUP CSR REPORT 201416

Top Commitment

Becoming a Truly Valuable Company
Taking On New Challenges for Future Generations
The pursuit of social value, as well as economic value, isessential for a company to achieve sustainable growth.
This philosophy has been passed down from generation
to generation throughout Sumitomo’s 400-year history.
By continuing to provide all our stakeholders with the“world’s best value,” Sumitomo Rubber will achieve sustainable growth and help society achieve sustainable
development.

VISION 2020 Long-Term Vision
Taking on New Challenges to Contributeto Future Generations
In September 2012, we announced VISION 2020, ourlong-term vision under which we vowed to become a
global player achieving both high profitability and highgrowth, and pursue increased value for all stakeholders
and greater happiness for all employees. VISION 2020
thus encompasses the Sumitomo Rubber Group’s desire
to pursue social value and economic value. To help us
achieve these targets, we have come up with a slogan,“Go for NEXT,” that will make all employees aware thatthey share the same strong desire to contribute tofuture generations by taking on new challenges.
The engine of our quest to take on new challenges
is three pronged: The challenges of new markets; aninsatiable drive for innovation; and entering new business fields.
As for the challenges of new markets, we aim to
expand business in growth markets, mainly emerging
countries like China, Brazil, and Turkey where demandis expected to increase. To pursue both economic value
and social value in these new markets, we are increasing
local hiring, helping communities advance, and reducing
environmental impact as we strive for harmony with theregions where we operate.

17

SUMITOMO RUBBER GROUP CSR REPORT 2014

An Insatiable Drive for Innovation
Leads to Development of ENASAVE 100,
the Ultimate Eco-Tire
Our insatiable drive for innovation is exemplified by theNovember 2013 release of ENASAVE 100, the world’s
first* 100% fossil resource-free tire; in other words,
containing absolutely no fossil resources such as petroleum and coal. It was a significant milestone for Sumitomo Rubber, the company that had been the industry
leader since making Japan’s very first car tire back in
1913. But our insatiable drive for innovation means thatthe development of this ultimate eco-tire is hardly theend of the story: we are working towards commercialization of highly functional biomass materials and plan
to release the first generation of tires using this biomass
in 2016 and the second generation in 2020.
As part of our efforts in entering new businessfields, we are focusing on spreading the use of ourdamping technology. We want to provide safe housing
to as many as possible in Japan, and towards this goal,
we have been working to expand sales of our MIRAIE
residential seismic damping unit, which employs
high-damping rubber to decrease building vibration.
We are now aiming to provide the world with damping
technology for high-rise buildings. We hope to contributeto economic advancement in emerging countries by
selling more of our vibration control dampers for high-risebuildings, especially in earthquake-prone countries like
Turkey and Taiwan.
* World’s first: Since synthetic rubber became the main type of tirerubber (according to Sumitomo Rubber)

mission and by contributing to the development of asustainable society. To this end, the SRI Way sets down
values and practical guidelines for employees to implement in their daily work, part of our efforts over theyears to foster an uninhibited corporate climate conducive to setting high goals and pushing each other togreater heights.
Putting into action our Basic Philosophy of CSR,
our CSR Guidelines based on the “GENKI” acronym, and
our CSR Message “For you, for the Earth,” we are not
only fulfilling social responsibilities such as complianceand environmental protection; we are also using our advanced technologies and development capabilities tosolve society’s problems and contribute to the betterment of the world. At the same time, we strive to develop
products that provide customers with safety and comfort,
achieve quality and economy, and make our management stronger and more transparent so that we cancontinue to earn the good faith of all our stakeholders.
The Sumitomo Rubber Group will solidify its businessfoundation, strengthen both vertical and horizontal ties
across the company, and build an organizational structurethat withstands the changes of our times. This will continue
to make us a company offering true value to communities,
and individuals; a company that can contribute to sustainable growth in society.
We sincerely request your continued guidance andsupport. We welcome and are grateful for your candid
comments and opinions regarding the content of thisreport and our company.

Aiming High to Become a Truly Valuable
Company
For a company to achieve sustainable growth, it must
constantly earn the public’ s trust by fulfilling its corporate

ProfileIkuji Ikeda
Graduated from Faculty ofEngineering, Kyoto University
1979: Joined Sumitomo Rubber
Industries, Ltd.
2000: Became General Manager
of Tire Production
Technology Division
2003: Became Executive Officer
2007: Became Director & Senior
Executive Officer
2010: Became Representative
Director & Managing
Executive Officer
March 30, 2011: Assumed
current position

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

SUMITOMO RUBBER GROUP CSR REPORT 201418

CSR Guidelines

CSR Activity Report

Green Initiative

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

Eco-First commitments makeenvironmental protection
a top priority.

Ecological Process

Reducing CO2 emissions.
Implementing worldwide environmental management.

Next-Generation
Product Development

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

Kindness to Employees

Fostering human resource development and making jobs rewarding.
Creating a safe, employee-friendly workplace
Achieving a work-life balance.
Ensuring thorough corporate
Promoting dialog with stakeholders.
governance.
Keeping social contribution in
Ensuring thorough compliance.
constant motion.

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 theEnvironment, the Group made a“pledge of eco-first” to the Ministerof the Environment. This pledge has
been mostly accomplished, and in March
2012, a new “pledge ofe c o - fi r s t ( r e n e w a lletter)” was signed.

In 2008, the Sumitomo Rubber Group formulated the CSR Guidelines based on the GENKI* acronym, along with
our CSR Philosophy: “The Sumitomo Rubber Group carries out its GENKI Activities, energetic contributions to
the environment and communities, in order to become a trusted corporate citizen and part of a sustainable society.”
Since then, we have carried out our GENKI Activities in various facets of society as we strive to contributeto the creation of a sustainable society.

Green
Ecology
Next
Kindness
Integrity* “GENKI” means lively and healthy in Japanese. Our GENKI acronym stands for Green, Ecology, Next, Kindness, and Integrity.

Eco-First commitments Under the Eco-First Program, which aims to encourage leading companies to redouble their environmental preservation efforts, companies make a commitment

Sumitomo Rubber Group CSR

Integrity for Stakeholders

to the Minister of the Environment to implement measures to curb global warming to help Japan meet its targets for the Kyoto Protocol.

G

rreen

CSR Procurement
Developing
Fuel-Efficient
ient Tires

P
ProtectingPro
the Environment
by Planting Treesb
At and around our worldwide businesssites, we are striving to plant 1 million
trees over 20 years under our One
Million Trees for Local Forests Project,
and we are carrying out the plantingof trees and other vegetation at our
Sumitomo Rubber GENKI Forests.

E

We are developing
next-generation products
through advances in newmaterials and otherareas so that we candevelop and releasetires that bringconsumers greater
fuel efficiency.

N ext

cologyco
Reducing CO2 Emissions
in Business Activities

Protecting Biodiversity
We strive to protect endangered
plants and animals throughactivities mainly at our factories
in Japan.

SUMITOMO RUBBER GROUP CSR REPORT 2014

Greater Safety for
Wheelchair Users
We develop and releaseproducts that make lifeeasier for wheelchair users.

Striving to Eliminate
All Workplace Accidents

At our factories in Japan and overseas, and at ouraffiliates in Japan, we strive to reduce CO2 emissions
from manufacturing activities, as well as limit the
global warming impact of our logistics activities.

19

We give CSR questionnaires to approximately 1,100 suppliers
and use the results as the basis for opinion-exchange
meetings to deepen understanding of CSR.

The Sumitomo Rubber Group carries
out safety activities that eliminate
the causes of accidents andintrinsically raise the level of safety.
We also have accident simulation
training and other safety education
and awareness activities.

K

Strengthening
Compliance AwarenessI

ntegrity

We have ongoing educationand training at ourworldwide businesssites to ensure thatcompliance is deeply
ingrained in ourbusiness practices.

indnesss

Helping Employees
Achieve an Ideal
Work-Life
Balance
We have introduceda range of childcare
and nursing care
support systems andare encouraging
employees to takeadvantage of these.

SUMITOMO RUBBER GROUP CSR REPORT 201420

CSR Activities Reporting

Targets and Results for Sumitomo Rubber Group CSR Activities
Note: Items marked with a are verified by third parties. See our website for details on Fiscal 2013 Activities and Fiscal 2014 Targets. (Scheduled to go
online at end of July 2014.)

CSR Guidelines

2013 Results and 2014 Target (Excerpt from major items)

Plan 2013 Target

Green

Green Initiative

Helping to curb global warmingby planting trees.
Fostering better relationships
with local communities throughtree planting.

biodiversity•Promoteconservation efforts at each site
(biotopes, etc.).

•

Promote Acorn Project. Plant
over 20 thousand trees per year.

Do 2013 Results
fireflies at biotopes at Nagoya•RaiseFactory and Miyazaki Factory
more endangered and near•Raise
threatened species at the Kakogawa

manufacturing process: 13%
reduction over the level in fiscal
1990

in Japan)•(Six5%factories
reduction in discharged

Ecology

Implementing worldwide
environmental management.

factories in Japan)•(Six
Discharged wastewater per unit:

2% reduction over the level inthe previous fiscal year

factories in Japan)•(Six
NOx, SOx, and dust: 78%
reduction over fiscal 2005

Next

Next-Generation
Product Development

Kindness

Kindness to Employees

Integrity

Integrity for Stakeholders

Pursuing safety and comfort,
economy, and quality.

Fostering human resource
development and making jobs
rewarding.
Creating a safe, employeefriendly workplacea tire with 50% lower•Developrolling resistancehuman resources with
•Developa global perspective.

Achieving a work-life balance.

more male employees to•Gettake childcare leave

Ensuring thorough corporate
governance.

BCP for Kakogawa•PrepareFactory to prepare for an

Ensuring thorough compliance.
Promoting dialog withstakeholders.
Keeping social contribution inconstant motion.

earthquake.

•Promote CSR in the supply chain.

Plan

2013 Target

Self-Evaluation

Check

Do

2013 Results

Action 2014 Target

Activities

the biotopes•Prepareto protect and raise•Continue
endangered species

with tree-planting•Proceed
activities while strengthening

on tree-planting•Reportactivities with local residents••

on protection of•Reportbiodiversity

100%

7% reduction

98%

11% reduction

98%
92%

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

Step up biodiversity activities

equivalent) over fiscal 2000

15% emission reduction over•fiscal1990
1% reduction in discharged•wasteper unit (except valuable
substances to be recycled) overfiscal 2011

79% reduction

98%

81% reduction in total•emissions
over fiscal 2000

2% reduction

98%

reduction in wastewater•over9%fiscal
2005

82% reduction

100%

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

100%

•Completed

100% fossil•Releasedresource-free tire in November
2013•

Development basics completed
Continued verification ofmass-production specificationsin 2013100%

training for staff to•Conducted
be dispatched overseas, training

100%

prior to overseas appointment,
and special English training

taking childcare leave•NumbersystemMales taking childcare leave
2011: 3, 2012: 0, 2013: 3

earthquake BCPs at•Formulated
Kakogawa Factory

questionnaire for•Created
suppliers on CSR procurementwith plan with goal
•Proceedingof achieving fiscal 2015 target

business while at the•Globalize
same time staying rooted inup activities in developing•Step
environmentally friendly
products

training for staff to•Conducting
be dispatched overseas, training
prior to overseas appointment,
and special English training

more male employees to•Gettake childcare leave100%

out BCP drills at business•Carrysites in Japan

CSR in the supply•Strengthen
chainreporting on activities•Continue
to reduce environmental impact
on activities to reduce•Reportenvironmental impact overseas

on how technologies•Reporthave been utilized in products
on how we have given•Reportcustomers the performance theywant in tires; for example, rideand comfort, low noise, and fuelefficiency

in autumn 2014

80%

100%

Reporting

9% reduction in per-unit•energyusage (crude oil

local communities

factories in Japan)•(Six
Domestic Tire Category Total

100% fossil•Releaseresource-free tire

Actionrelations with local residents

3% increase

waste per unit (excepting valuable
substance to be recycled) overthe level in fiscal 2011

emissions of organic solvents:
81% reduction over the levelin fiscal 2000

Developing environmentallyfriendly products.

100%

Cumulative total: 118,166 trees
plantedfactories in Japan)•(Six
CO2 emissions during theReducing CO2 emissions.

Check Self-Evaluation**planting in Japan•AcornFiscal 2013: 24,203 trees planted

equivalent per unit): 9%
reduction over the level in fiscal
2000

2014 Target

CSR Targets Based on Stakeholder Input

Factory and the Head Office

factories in Japan)•(Six
Energy saving (crude oil

Ecological Process

Based on our GENKI CSR guidelines, we have verified the progress of our fiscal 2013 activities and set targets for fiscal 2014.
Let’s look at the main targets. We have also set medium-termtargets related to CSR activities and reporting by referencing
the results of various questionnaires and ongoing dialogue
events with stakeholders.

communication between
employees who took training•Advance•Survey
management and employees
on how to explore issues more deeply,
and report on the survey results
more women to•Appoint
management positions
Reporton the state of business•expansion
and CSR activities inmore young people overseas,•Appoint
emerging countries
foster local human resourceson the hiring and manageand implement tools to raise•Report•Develop
ment appointments of women
CSR awareness among employees
new technologies and•Developadvance CSR activities over awide range of areas, including inthe supply chain

the Q&A section of the•Revisewebsite and use the results incatalogs and other tools forcustomerson the revised content of•Reportthe Q&A section of the website.
consumers to our website•Leadwhenever we introduce andrelease a new productNote: Self-assessment calculation method: Use the baseline year (1 – reduction ratio)
to calculate as follows.

1
21

SUMITOMO RUBBER GROUP CSR REPORT 2014

target value – actual value
target value

100
SUMITOMO RUBBER GROUP CSR REPORT 2014

22

G

CSR Activity Reportreen

Gre e ni n i t i a t i ve

Green Initiative

History of Sumitomo Rubber Group’s Forest-Building Activities

Fiscal 2005

Fiscal 2007

Fiscal 2008

Fiscal 2009

Fiscal 2011

Start of project tonurture seedlings fromacorns for planting

Establishment of
Acorn Bank so that
local residents andemployees’ family
members canparticipate

Acorn initiative grows
to become the Acorn
Project—Planting for
the Future

Start of One Million
Trees for Local
Forests, project toplant 1 million trees
over 20 years

Target of 1 million
trees planted
achieved far ahead ofschedule

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

100

50

0

2009

2010

2011

Acorn Project in Japan
Team ENASAVE campaign

2012

2013

2029

(FY)

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

The Voiceof Our
Employees

Helping to Curb Global Warming
While Fostering Better Relationshipwith Local Communities throughTree Planting
One Million Trees for
Local Forests Project

Planting Trees in GENKI
Forests in JapanOne of the categories of the Sumitomo
Group’s CSR Guidelines is Green (green
initiative), and in line with this we plant
trees and flowers at our bases in Japanand overseas, and in the areas surrounding them.
In fiscal 2009, we launched our
One Million Trees for Local Forests Project under which we planned to plant 1
million trees over 20 years in andaround our worldwide business sites.
We far outpaced our initial target andhad planted 1.4 million trees as of fiscal
2013. We will continue to plant trees as
we focus on building forests.

Sumitomo Rubber Industries conducts
the planting of trees and other vegetation at nine GENKI Forests (with a total
area of 21 hectares) around Japan inefforts to make our company businesssites and the areas around them greener.
When planting trees, you must notuse species from outside the region
since they can negatively impact theecosystem. That’s why we use only
fast-growing trees that have been nurtured from acorns gathered locally, as
well as other native trees. We continue
to make areas greener while considering
the protection of a region’s biodiversity.

Nurturing Approximately 750 Treesof Local Variety

Toshio Hatatani
Person in charge of Green Initiative,
Izumiotsu Factory,
Sumitomo Rubber Industries, Ltd

In Kounoyama, Kishiwada City, we have planted
approximately 750 trees, including oaks and sawtooth oaks raised from Senshu region acorns, aswell as wild cherry and mountain peach. We
currently go to the forest to clear underbrusheight times a month.
Clearing the underbrush in summertime istough: the weeds are taller than we are, we workon slopes 45 degrees or steeper, and we end up
drenched in sweat. The young trees have currently grown to more than five meters in height andthey’re going to get bigger, so we will continue
our work in maintaining this forest.

23

SUMITOMO RUBBER GROUP CSR REPORT 2014

Planting cherry trees in theeast part of Shirakawa City

(Left) Planting mangrove trees in Bedono villege, Demak prefecture,
Indonesia(Right) Employees of the Vietnam Factory plant trees at
a local elementary school

Overseas Tree-Planting
Activities
We are conducting green initiatives at
our worldwide business sites. In fiscal
2013, we planted a total of 26,317
trees at our factories in Changshu andZhongshan, China, in Indonesia, Malaysia, Thailand, and Vietnam, as well
as at sales companies.
Starting in 2009, a portion of the
net sales from our ENASAVE Series
fuel-efficient tires has supported mangrove-planting activities in the TeamENASAVE campaign. In fiscal 2013, weplanted 39,743 trees, bringing thetotal so far to 1,095,617 trees planted.
Consumers can also contribute to
our tree-planting activities. Under our 1
Pair for 1 Love initiative, a portion of
the sales proceeds from gloves madeby Dunlop Home Products Ltd. goes totree-planting activities in Borneo, Indonesia. Since fiscal 2010, 1,600 trees
have been planted.

The Voiceof OurStakeholders

I Want Sumitomo Rubber to be a Leader
in Preserving Biodiversity

To p i c s

Letter of Appreciation from Osaka Governor for Revitalization of
a Community Forest at the Sumitomo Rubber GENKI Forest
in Kounoyama, Kishiwada

Takahiro Iwasa

In fiscal 2009, under the Osaka Prefectural government’s
Adopt-a-Forest system*, Sumitomo Rubber Industries signed
an agreement to revitalize a community forest in Kounoyama,at an elevation of 296.4 meters and situated in central Kishiwada City, Osaka Prefecture. For the past five years up until
fiscal 2013 on the approximately 2-hectare site named theKounoyama Sumitomo GENKI Forest, twice weekly we havecleared underbrush and thinned trees, and once yearly wehave planted seedlings (oaks and sawtooth oaks) grown on our nearby factory premises from acorns.
For these efforts, we received a letter of appreciation from the governor of Osaka Prefecture.
We have signed an agreement to continue these activities for the next five years and began inearnest in fiscal 2014.

Sub-Senior Staff, Environmental Policy,
Environmental Conservation Section,
Environment Department,
Kishiwada City Government

The quality of forests and other greenery is
improved not simply by planting any kind of trees
but rather by planting trees native to the regionso as to protect biodiversity. With a firm belief in
the importance of this philosophy, since 2012
Kishiwada City has been working to protect local
biodiversity.
Once dilapidated, Kounoyama is gradually
being restored to its original state. I hope that
Sumitomo Rubber Industries continues to be aleader in biodiversity-protection activities.

* Osaka Prefecture Adopt-a-Forest system: The prefectural government mediates companies’ purchases from private landowners sothat forest land can be preserved.

SUMITOMO RUBBER GROUP CSR REPORT 201424

E

CSR Activity Reportcolog yEc o l o g i c a lp ro c e s s

Reducing the Environmental Impact of Our Business Activities

Sumitomo Rubb
Rubber Industries Eco-First Commitments
1. Creating a Low-Carbon
Society

2. Building a RecyclingOriented Society

In fiscal 2015:• Reduce CO2 emissions fromenergy consumption intensity• Continue to have

20,000• Plant overtrees peryear under the Acorn Project.

complete zero

emissions for waste to landfill at
production bases in Japan.

55

less than%(of 1990 levels).

3. Promoting Harmonious
Coexistence with Nature• Take action to protect

biodiversity.

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

50% lower• Release tire withrolling resistance.

Reducing CO2 emissions
Eco-First
Commitments

Note: Items marked withare verified by third parties.
Verified data do not include “intensity” figures.

Combating Global Warmingin Our Production Processes

Sumitomo Rubber Group was certified
as an Eco-First Company by the Ministryof the Environment in March 2009. wepledge to the Minister of the Environment to conduct environmental protection measures.
In March 2012, we made three
new Eco-First Commitments for fiscal
2015: Creating a low-carbon society,building a recycling-oriented society,and promoting harmonious coexistencewith nature.
In fiscal 2013, we achieved alltargets as planned.

LNG tank(Shirakawa Factory)

In fiscal 2013, CO2 emissions at Sumitomo Rubber Group’s six Japanese factories totaled 261,000 tons-CO2 (89% of
fiscal 1990), down 3,000 tons-CO 2
from the previous year. This fell short ofour target of at least a 13% reduction
from fiscal 1990. Per-unit CO2 emissions
dropped 1.8 points against the previous
year thanks mainly to improvement
through usage of recoverd exhaust-heatand heat-retention measures.
Per-unit energy usage (crude oil
equivalent) decreased by 2.6 points
against the previous year but fell shortof our target of at least a 9% drop
against fiscal 2000.

In fiscal 2013, both per-unit CO2
emissions and per-unit energy usage(crude oil equivalent) at our nine overseas factories and five factories operated
by our domestic affiliates failed to reachour target of at least a 3% decreaseagainst the previous year.
We are shooting to achieve fiscal
2014 targets at all business sites inJapan and overseas.

3.00(t-CO2e/t)

600(1,000 tons-CO2e)

400

1.876

322

252

365

1.720

1.584

386

409

1.549 1.561

458
2.00

1.442

1.00

92

2.4
(t-CO2e/t)

400(1,000 tons-CO2e)300

293 302236

267 263

297

265

293

264

293
261

1.8

288
252

180
(1,000 kL)

0.638

170

150

1.481
100

0.929

0.891

0.905

0.932

0.915

0.896 0.6

1990 20091

Total*

20102011 20122

Total emissions*2013 2014 (FY)
TargetPer 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 cogenerationcredits.

172

2004
0.65
(kL/t)
0.63

169

0.59

0.609
0.590

0.593

0.593
0.580

0.57

Total

Total*3

2010

2011

2012

2013

Per unit*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).

2010

Per unit

2011 2012 2013

2014
Target

3,992

0.843

3,862
3,646

3,500

3,370

4,010

3,970

0.90

3,737

0.597

0.596

0

2010
Per unit

2,117

2,295

2,249 (kL/unit)
0.400

0.300

0.307

0.307 0.302 0.299 0.308 0.300

1,000

0.200

500

0.100

0.533 0.521 0.538 0.525

0

2009

1,877

1,987

2,273

1,500

0.30

Total*4

1,855

0.60

3,000

2004

2,000

0.500

0.464

2011

2012

2013 2014
Target

(FY)

0

0

2004
Total

2009

2010

Per unit

2011 2012

2013

2014
Target(FY)

Miyazaki Factory Installs Approx.
2-MW Solar Power Generation System
In February 2013, we were certified by Japan’s Ministry of Economy, Trade and Industry (METI) as
business operator of a renewable energy facility, and in January 2014 began to operate a solar power
generation system at Miyazaki Factory with a capacity of approximately 2 MW. 9002 solar modules(with a maximum output of 2178kW) were installed on the roof. This system is a part of the Feed-in
Tariff Scheme for Renewable Energy and all generated energy are sold to Kyushu Electlc Power.
By creating electricity through solar power, a renewable energy source expected to spreadworldwide, we can contribute to the Japanese government’s plans, disseminating renewable energy and reducing environmental load for society as a whole.

In fiscal 2013, emissions from the transportation of tires totaled 34,614
tons-CO2 (up 0.8% from fiscal 2012).
The main reason was an increase inaverage shipping distance as someproducts had to travel farther following
production transfer between factories.
We are striving for a modal shift: achange in means of transport fromtrucks to railroads and ferries, whichhave a relatively low environmental
impact. In fiscal 2013, we achieved amodal shift ratio of 16.9%, up 1.5
points over last year. Our large-vehicletransport ratio was 22.2%, up 1.6
points. Per-unit CO2 emissions were up
1.8 points over last year.
We will continue to curb global
warming impact in distribution processes in fiscal 2014 through measures suchas shortening transport distances.

CO2 Emissions in Logistics (for Tire Productionin Japan)
0.05(t-CO2e/t)

60

Solar power generation system at
Miyazaki Factory(1,000 tons-CO2e)

0.04

50

0.043534.7930.03800.03840.03880.039533.17034.09034.33034.614

0.03

0.02

30
(10,000 kL)

(FY)
150

0.721

176

171

156

0.80
(kL/t)
0.70

136

0

0

2009
Total

0.676 0.685

106

100

171

0.724

0.789

0.672

0.658

2010

2011

2012

2013

(FY)

Per unit

0.60

0.50

50

34
0

2004
Total

SUMITOMO RUBBER GROUP CSR REPORT 2014

4,000

2,500
(kL)

40

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

025

2014 (FY)
Target

200
0

0

2009

2009

0.61

157

2000

0

0

164

149

140

0

0

174

0.616

160
1.2

200

174

(t-CO2e)

To p i c s

CO2 Emissions (9 Overseas Factories)

200

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

1.20(t-CO2e/unit)

4,500

Combating Global Warmingin Distribution Processes

Energy Usage (5 Factories Operated by
Domestic Affiliates)*4 According to the Guide for Calculating Greenhouse Gas Emissions, published by the Japan Rubber Manufacturers Association.
The electricity emission factor is the value announced by the electricity companies in 2004.

1.958

CO2 Emissions (6 Factories in Japan)

CO2 Emissions (5 Factories Operated by
Domestic Affiliates)

Modal Shift (transportation by ship)

2009

2010

Per unit

2011

2012

2013

2014 (FY)
TargetSUMITOMO RUBBER GROUP CSR REPORT 2014

26

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CSR Activity Reportcolog yEc o l o g i c a l

Reducing the Environmental Impact of Our Business Activities
Note: Items marked with are verified by third
parties. Verified data do not include “intensity”
figures.
Verification covers: Waste generated in fiscal 2011
and 2012, and waste discharged (excluding
valuables) in fiscal 2013.

Building a RecyclingOriented Society
Continue to Achieve
Complete Zero Waste Disposal

Reducing Waste Discharged

In March 2010, by promoting recyclingof wastes Sumitomo Rubber Group
achieved complete zero waste disposal,
meaning no wastes are directly sent tolandfills at primary productions in Japanand overseas. We will work in a systematic manner to ensure that our newly
launched production bases also achievecomplete zero waste disposal and makeevery effort to maintain complete zerowaste disposal. We are trying to achievecomplete zero waste disposal at our
Hunan Factory in China.
The material recycling rate was
82% in fiscal 2013, short of our targetof 85%. We will endeavor to achieve thistarget in fiscal 2014.

To make use of wastes as valuables, infiscal 2013, we changed the management indicator from “waste generated”
to “waste discharged” (excluding valuables).
Waste discharged intensity in fiscal
2013 was up 3.1 points at six factories
in Japan and up 37.5 points at nine
overseas factories. This increase wasdue to the opening of new production
bases and the collective disposal of
unnecessary equipment in storage.
Meanwhile, waste discharged intensity
at five factories operated by affiliates inJapan was down 1.6 points.
We will continue to change wastes
into valuables in fiscal 2014.

Waste Discharged (Excluding Valuables)(6 Factories in Japan)
0.15
(t/t)

15
(kt)
10

5

9.39

8.92

Number of Factories Achieving Complete Zero Waste Disposal
Primary Production Bases
100%

25(Production Bases)
20

9.33

0.032

0.032

0.033

2011

2012

2013

Waste discharged (excluding valuables)

17

10

Waste Discharged (Excluding Valuables)(9 Overseas Factories)
(kt)
10

8.77
5.07

5

5.98
0.024

0.033

2012

2013

8

3

18

19

0

2006

(FY)

Per unit

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

1

1.8

1.9

0.257

0.248

2.0

0.30

0.244

0.20

8

2007

2008

2009

2010

2011

2012

2013

(FY)

0

2011

2012

Waste discharged (excluding valuables)

At the awards ceremony (a person on the left is Mr. Inamoto
Managing Director of STEC)

2013

(FY)

To p i c s

Sumirubber Thai Eastern Corporation Co., Ltd.
(STEC) received the Ministry of Economy,
Trade and Industry Award in the Fiscal 2013
3Rs (Reduce, Reuse, and Recycle) promotion
merit awards sponsored by Japan’s Ministry of
Economy, Trade and Industry (METI).
This award was in recognition of ourachievement of complete zero emissions for
direct final disposal, as well as zero wastewater
through wastewater recycling.

SUMITOMO RUBBER GROUP CSR REPORT 2014

nese national butterfly Omurasaki at
Ichijima Factory.
In fiscal 2013, we began growing
Arimagumi of the family Elaeagnaceae
at Kobe area and Nagabo-tentsuki or
Nagabono-waremokou at Kakogawa
Factory.
They are a near threatened species
in Hyogo Prefecture.

The Voiceof OurStakeholders

Creating a Habitat for Emperor Butterflies
Leads to a Healthier Ecosystem

Implementing Global
Environmental Management

Takaaki Adachi
kawanishi City Biodiversity Strategy
Measures Expert

Per unit

Honors for Recycling Efforts
at Our Natural Rubber
Processing Factory in Thailand

27

Sumitomo Rubber Group are conducting conversation of biodiversity.
Our main activities are such as protecting the habitat of Katakuri at Shirakawa Factory, conserving and restoring Fujibakama at Kakogawa Factory,
protecting the habitat of Higotai at
Miyazaki Factory which is a perrenial
plant of the family Compositae and an
endangered species and bleeding Japa-

0.40(t/unit)

3

0

2005

0.05

0.022

2

0

2004

0.10

0

2011

Coexistence with Nature
Protecting Biodiversity

0.15
(t/t)

14

12

6

18

(FY)

Per unit

15

An Omurasaki at Ichijima Factory (left)
Fujibakama and Nagabo-tentsuki at Kakogawa Factory (right)

0.05

0

(kt)

15

0.10

0

Waste discharged (excluding valuables)5

p ro c e s s

ISO 14001Global Integrated
Certification
As Sumitomo Rubber Group can manage
our global activities like creating a
low-carbon society, in December 2010
Sumitomo Rubber Group obtained ISO
14001 Global Integrated Certification forour 30 bases in Japan and overseas. We
are the first company in the tire industry
to obtain Global Integrated Certificationthat includes overseas bases. This lets us
unify an environmental management
system of our primary production anddevelopment bases in the world.
In fiscal 2013, Sumitomo Rubber(China) Co., Ltd., our tire production andsales subsidiary in China, and the Hunan

Factory, obtained certification and are
now included in the Global Integrated
Certification.
Employees at ISO 14001 Certified Sites as
Percentage of All Employees

Employees
at ISO 14001
Certified Sites as
Percentage of
All Employees

23,489persons

78.7%

Note: Includes temporary employees. (Employees number iscurrent as of end of December 2013.)

Ichijima Factory is breeding sasakia charonda(Japanese emperor butterflies), a near threatened
species. It is also using local seeds to grow Celtis
sinensis var.japonica, a tree whose leaves areeaten by the butterfly larva; and quercus a cutissma, which produces sap that the adult butterfly
feed on. Celtis sinensis var.japonica provide a
habitat for many beautiful varieties of butterfly,
including Nymphalis xanthomelas (scarce tortoiseshell), Libythea celtis (nettle-tree butterfly), andHestina persimilis japonica, as well as Chrysochroa
fugidissima (jewel beetle). The sap from quercus a
cutissma is like a cafeteria in the forest for insects,
attracting stag beetles and unicorn beetles,
butterflies, moths, bees, wasps, and flies.
The proliferation of local celtis sinensis var.japonica and quercus a cutissma, and the breedingof emperor butterflies native to the Tamba area,
will increase intraspecies diversity, while creating
an environment for these butterflies to live will
promote interspecies diversity and promote diversity of the overall ecosystem. These biodiversity
efforts are also proving useful for local elementary
schools’ environmental education.

SUMITOMO RUBBER GROUP CSR REPORT 201428

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CSR Activity Reporte x t

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

Fiscal 2013

Environmentally Friendly
Product Development Themes

What tires
can do forthe environment
Resource
savings

Product concept

NatureSave

TargetTo launch a 100%
fossil resourcefree tire
Seep pages 7-10 for
details

ENASAVE
SeriesFuel
efficiency

Fiscal 2014

Product concept

EnergySave

TargetTo launch a tirewith 50% reduction
in rolling resistance

Developing Environmentally
Friendly Products
New Material Development
Using State-of-the-Art
Analysis Technology

Developing FuelEfficient Tires

Rolling
resistance% decrease34

Note: Compared to SP670

The tire division of Sumitomo Rubber
Industries has in-house standards for environmental performance. This helps us
ensure that tires do more than just perform
well; it allows us to use non-fossil resources, provide fuel efficiency, and incorporate
special noise-absorbing sponge, thus
giving consumers driving comfort in a tirethat protects the environment.
In March 2013, we released the ENASAVE SP688, which brings the ENASAVE
Series’ superb environmental performanceto trucks and buses. In February 2014, wereleased the ENASAVE EC203, the second
generation of our standard fuel-efficienttire offering superb environmental performance and economy with improved fuelefficiency and abrasion resistance.

Using our proprietary 4D NANO DESIGN
technology for new material development, we created ultra-pure natural
rubber (UPNR)*1 by removing impurities
from natural rubber and thus achieving
a tire with higher fuel efficiency andabrasion resistance. We also modified
the manufacturing process since using
UPNR as is in the process would result in
deterioration of its properties. Starting infiscal 2014, we will gradually release
new tire models that incorporate UPNR.
*1 Sumitomo Rubber Industries has developed a process
for removing certain impurities from natural rubber inorder to achieve rubber with favorable properties. The
company has been granted a patent in Japan for theprocess and for the UPNR itself.

ProteinPhospholipid

12

Higherabrasion
resistanceNatural Rubber Particle

Ultra-pure natural rubber (UPNR)

Low rolling resistance(low fuel consumption)

High durability(improved resistanceagainst rupturing cracking and wear)

29

SUMITOMO RUBBER GROUP CSR REPORT 2014

In Pursuit of Safety and Comfort,
Economy, and Quality
Quality Management System
The Sumitomo Rubber Group’s quality
management system is certified for ISO/TS
16949*2, an international standard covering automotive parts and service parts.
We are working in earnest on a quality management system for our overseas
bases as well. In November 2013, our
Hunan Factory in China was certified for
ISO/TS 16949 and in December 2013 ourBrazil Factory was certified for ISO 9001.
*2 ISO/TS 16949: A quality management system basedon ISO 9001 but tailored for the demands of theautomotive industry.

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

To p i c s

2 Models of WINTER MAXX Win Good Design Award*3
The WINTER MAXX WM01, a studless tire for passenger cars released inAugust 2012, and the WINTER MAXX SJ8, a studless tire for SUVs released in
September 2013, both received 2013 Good Design Awards. Incorporating the
MAXX Sharp Edge for sure grip on icy surfaces, and Nano-Fit rubber developed
using 4D NANO DESIGN, WINTER MAXX provides good braking performance on ice and a long service life. A fiscal 2013 survey by Sumitomo Rubber
Industries showed a 93%*4 rate of customer satisfaction with WINTER MAXX.
*3 Good Design Award: A comprehensive annual program for the evaluation and commendation of design, organized by the Japan
Institute of Design Promotion (JDP).
*4 A survey of 14 criteria was given to 901 customers, who rated the criteria on a scale of 1 to 10 (10 is best). The customer wasconsidered “satisfied” if he or she gave a score 6 and higher (“somewhat satisfied”).

The Voiceof Our
Employees

Using Technological Strength to Respondto Demands for High Fuel Efficiency
and Durability

Toshiaki Sakaki

RubberRemove of
impurities

Note: Compared to EC202d e ve l o p m e n t

Next-Generation Product Development

Rawmaterials

Rolling
resistance% decrease

p ro d u c t

General Manager,
Sumirubber Thai Eastern Corporation Co., Ltd.

The tire market is demanding higher fuel efficiency and durability in products. One solution we
found was in the natural rubber that accounts forabout 30% of a tire’s raw materials. We worked
on developing a high-purity natural rubber thatmaximized natural rubber’s ability to provide fuelefficiency and durability.
But if you simply purify the rubber, youremove the substances that make natural rubber
stable and you end up with lower heat resistanceand thus unstable performance. Through muchpainstaking research and effort, we discovered
the factors that enabled us to solve this problem.

DUNSLOPE Lite SLIM R285SL

Developing Products that
Improve Safety
The DUNSLOPE Lite SLIM transportable wheelchair
ramp is suitable for the narrow entrances of Japanese homes and is easy to carry and set up.
In March 2013, all models of this productwere certified for use as nursing care and hospital
equipment by the Association for Technical Aids,
Inc. Certification means that a product is not justeasy to use but is also extremely safe. Besides use in
at-home nursing care, the DUNSLOPE Lite SLIM is
ideal for use in a wide range of applications; forexample, at train stations, and hotels and inns.

30

K

CSR Activity Reportindness

K i n d n e s st o

e m p l oye e s

Kindness to Employees

Sumitomo Rubber Group’s Basic Hiring Policy

Employees achieve satisfaction byworking for the Sumitomo RubberGroup, which grows as a result of
its employees’ success. To continuebuilding such a sound relationship,
we believe that we have a responsibility to provide all employees witha fair and equal chance to growthrough a range of benefit packages and training programs.

Diverse
employment
environment andhuman resource
development

Environment
conducive torewarding work

Fair evaluationand equal benefits

Skill Olympics

Fostering Human Resource Development andMaking Jobs Rewarding
Training System
The Sumitomo Rubber Group fosters
human resources through training thatgives each level of employees the skills
needed. For young employees, we haveproblem-solving practice, management
simulation games, and one-the-job training leader courses. For managers andmanager candidates, there is training toacquire the basics in decision-making
and fostering of subordinates.
The pillars of our globally focused
human resource development is training
for employees appointed to overseas
transfers, and for executives of our local
subsidiaries around the world. A focus infiscal 2013 was the selection of candidates
for overseas subsidiary executive positions,and discussions on policies for humanresources staff, the type of employees
needed, and training at each subsidiary.

Training Based on
Employee Opinions
Since 2007, we have given employees
periodic questionnaires for their feedback
and ideas on training. The opinions garnered resulted in training in fiscal 2010 on
how to explore issues more deeply andhow to boost management capabilities.
Thanks in part to such efforts, a fiscal
2012 employee questionnaire showedthat we ranked highly compared to othercompanies in the industry in regards tosatisfaction among employees withhuman resource training. In fiscal 2013,
we further stepped up human resource
development with, for example, a course
for mid-level employees on active listening
and logical dialogue.
We are administering questionnaires
again in fiscal 2014 and will use the results
to further enrich our training programs.

Manufacturing Training

Skill Olympics

At our Manufacturing Training Center,
we hold courses on themes such as passing down skills and the philosophy of
manufacturing, and responding to business globalization. Our goal is to ensurethat all worldwide employees get a consistent, standardized education on ourcompany’s manufacturing.
In fiscal 2009, we opened our
Shirakawa Training Center, where employees working in production areas
receive classroom learning, hands-on
practice in the practical training area, andon-site training at the adjoining Shirakawa
Factory. A 74-room dormitory means thatparticipants can stay for long-term training and it gives us an environment conducive to ongoing manufacturing education.
In fiscal 2013, a cumulative total of
1,750 participants took courses at the
Shirakawa Training Center.

Every six months we hold the SRI Skill
Olympics at the Shirakawa Training
Center to help pass on skills to young
employees and to motivate them. Manufacturing is divided into eight processes,
and one of these is the theme for each
edition of the Skill Olympics. The event
brings one young employee selectedfrom each of our worldwide factories topit his or her skills against the others infriendly but intense competition.
At the 9th SRI Skill Olympics in fiscal
2013, the representative of the Hunan
Factory in China became the first overseas base to take the gold medal.
Results of Fiscal 2013 SRI Skill Olympics
8th Skill Olympics (Theme: Breaker shut-off)
Gold: Izumiotsu Factory
Silver: Thai FactoryBronze: Indonesia Factory

9th Skill Olympics (Theme: Small-scale molding)
Gold: Hunan Factory (China)
Silver: Indonesia FactoryBronze: Shirakawa Factory

Dialogue Between
Managers and Employees
The Sumitomo Rubber Group provides
periodic opportunities for frontline managers and employees to share concerns andexchange opinions. At informal roundtable meetings with the President, between
10 and 20 young employees and female
employees gather to focus on selectthemes as they freely discuss a range of
topics off the record including work-related advice, the President’s philosophy oflife, family, and hobbies. A total of 216
employees took part in 14 sessions in fiscal
2013. While continuing with key topics
from the past, we also held sessions focusing on new areas such as changing jobs
mid-career, allowing participants toengage in frank exchange of opinions onwhat Sumitomo Rubber Industries is doingright and what it needs to change.
We plan to provide employees at all
job levels and in all company divisions
opportunities to exchange views with the
President and among themselves.
Roundtable meetingwith the President

Training for promoted
supervisors
Manufacturing training

31

SUMITOMO RUBBER GROUP CSR REPORT 2014

SUMITOMO RUBBER GROUP CSR REPORT 201432

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CSR Activity Reporti n d n e s s

K i n d n e s s

Education and Awareness
Activities Boost Occupational
Safety and Health

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
and intrinsically raise the level of safety.
In fiscal 2012, carelessness due tolack of safety awareness resulted in many
accidents involving workers hands,
fingers, and feet. In January 2013, there
was a major accident at an overseas
factory in which a worker’s body got
caught in large equipment. In response,
in fiscal 2013 we made and carried out
equipment safety measures to keep
equipment and workers apart and to
shut off equipment before workers enter
potentially dangerous places. In addition,
to make employees more safety-aware,
we conducted hands-on activities at all
business sites to make everyone in theentire Group aware of three principles:abide by rules, make the workplace safer,and have managers and supervisors fulfill
their responsibilities. As a result, thenumber of accidents was 33, down bynine from the previous fiscal year. We willcontinue to make the training of safety-aware human resources a top priority
as we work towards eliminating all accidents in the workplace.
Frequency of Occupational Accidents(disabling injury frequency rate*)
2.0

1.61

0.99

0.98

1.62

1.59

1.58

1.05

1.00

0.94

0.15

0.15

0.15

2011

2012

2013

The Voiceof Our
Employees

Greater Safety Awareness Led to
Decreased Risks

Tsugio Onodera
Person in charge of health and safety, Shirakawa Factory
Sumitomo Rubber Industries, Ltd.

In fiscal 2013 at the Shirakawa Factory, we had
all employees take part in safety activities that
included training them to put occupational safety
and health above everything else and learning
how to reduce risks. Despite these efforts, we still
had three accidents resulting in medical leave.
However, by raising everyone’s awareness, risk
assessment results showed that 283 work processthat we had planned measures for were madesafer, and the number of points in the factorythat had previously been identified as at least risk
level III was reduced from 1,453 to 136. To eliminate the remaining points of risk, we are continuing to take measures, affix warning labels, andfurther raise employee awareness. In fiscal 2014,
we are implementing further safety measures inorder to receive certification for the OHSAS
18001 international occupational health andsafety management system.

1.5

1.0

0.39

0.5

0.17
0

2009
Overall Industry

2010

Employees receiving specific health advice.
Poster advertising seminar on how toquit smoking(FY)

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. In
fiscal 2013, a cumulative total of 41,000
employees joined these activities.
To drive home just how frightening
accidents can be, we have training thatuses actually machine models to simulate accidents and thus effectively raise
employees’ sensitivity to the dangers. A
cumulative total of 33,000 employees
have taken part in this. This course isalso open to local companies andschools and we have welcomed 1,000
participants so far.
In fiscal 2014, we will continue
fostering safety-aware human resources
through training that includes actuallylooking at machinery and work processes
while discussing in small groups how toeliminate dangers, and simulating workplace accidents using actual machinery.

Accident simulation training
at the Shirakawa Factory

Preventing LifestyleRelated Diseases
To help prevent lifestyle-related diseases, in fiscal 2013 we provided specifichealth advice to employees at our eightbusiness sites based on the results of
their annual health checkups. In fiscal
2014, we will step up this advice withthe goal of reducing the number of em-

Work-Life Balance
Helping Employees Balance
Work and Family Life
Sumitomo Rubber Industries has introduced work systems and awarenessactivities with childcare in mind; forexample, we are reducing the amountof after-hours work employees do, andwe are encouraging employees to taketheir paid leave. The result of these andother efforts has been that all employees who give birth take childcare leave.
As well, we are doing everything possible to encourage male employees totake childcare leave, and in the past five
years eight male employees have done
so. In fiscal 2009, we became the firstcompany in the tire industry to be certified for the Kurumin logo, presented by
the Japanese government to companies
that strive to help employees raise theirchildren. We were once again certified
in fiscal 2013.
We will continue to help our employees achieve an ideal work-lifebalance.

Encouraging Employees toTake Advantage ofChildcare and Family-Care
Support Systems
In fiscal 2010, the Sumitomo RubberGroup enhanced its childcare and family-care support programs. We relaxed
the limit on the number of times a male
employee can take childcare leave, sothat when he takes his first childcare
leave within the first eight weeks after
the birth of a baby, he can take a second
childcare leave before the child reaches
the age of two. We also introduced thefamily-care leave system to allow employees who need to care for family totake leave.
We will continue to use the company
intranet and other means to encourage
employee use of various support systems,
to introduce new systems that are easy totake advantage of, and generally create
an environment that helps employees
take better care of their loved ones.

SUMITOMO RUBBER GROUP CSR REPORT 2014

The Voiceof Our
Employees

Anticipating an Environment Even More
Conducive to Performing Both My Job
and My Family Duties to the Fullest

Aiko Okuma
Technical Department.IV,
Sumitomo Rubber Industries, Ltd.

Number of Employees Who Took Advantage ofChildcare Leave and Family-Care Leave Systems(Sumitomo Rubber Industries, Ltd.)

Manufacturing Industry* 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

fiscal 2020. This policy will be gradually
put into action at each site as we implement measures to prevent passive smokeby having designated smoking areas tosegregate smokers, and recruit the cooperation of family members in promoting
no-smoking awareness.

ployees who require it.
To eliminate the damage to healthfrom smoking, in May 2013 we announced
a new company-wide policy of promoting
strong anti-smoking measures with thegoal of making all buildings non smoking
and reducing the smoking rate by half by

FY
2009

Sumitomo Rubber Industries, Ltd33

e m p l oye e s

Kindness to Employees

Creating a Safe, Employee-Friendly Workplace

1.62

t o

FY
2010

FY
2011

FY
2012

FY
2013

Childcare
leave

Male

1

1

3

0

3

Female

8

18

15

15

21

Short-time
work

Male

1

0

1

0

0

Female

10

4

18

15

12

Family-care
leave

Male

0

0

1

2

2

Female

0

0

0

0

0

I took childcare leave until my child was 11months old and in April of this year I returned towork. Perhaps partly because other employees in
my division had taken childcare leave before me,
the atmosphere was conducive to taking time offwork and everyone in the office was very
supportive. And I was able to pick up smoothly
where I left off with my work. Being able to use
the childcare leave system meant I had valuable,
quality time with my child.
If there were an after-school care facility at
my workplace, I could enjoy even more peace ofmind in my job. I look forward to the company
creating an environment in which I can perform
both my job and my family duties to the fullest.

SUMITOMO RUBBER GROUP CSR REPORT 201434

I

CSR Activity Reportn t e g r i t y

In t e g r i t y

f o r

s t a k e h o l d e r s

Integrity for Stakeholders

Sumitomo Rubber Group Stakeholders

As we globalize our business, wewelcome a diverse range of new
stakeholders around the world.
We strive to demonstrate integrityin all our business activities so that
we can earn the trust of all our
stakeholders.

Sumitomo Rubber Group Corporate Code of Conduct (Excerpts)

Customers
Shareholders,
Investors

Suppliers

Local
community

Employees

I In Business Activities

II Relationship Between Company and Employees

III Relationship Between Company and Society

I-1 Provision of products and services
I-2 Management and protection of information
I-3 Conducting of fair competition and business dealings
I-4 Protection of intellectual property
I-5 Control of exports
I-6 Restrictions on entertainment, gifts, and donations
I-7 Relations with civil servants
I-8 Timely information disclosure
I-9 Prohibition of insider trading

II-1 Respect for human life and assurance of safety
II-2 Respect for employees’ personality and characterII-3 Fair evaluation and benefits, personnel development
II-4 Protection of company property
II-5 Protection of whistle-blowers

III-1 Conduct based on laws and social norms
III-2 Relationship with racketeering groups and otheranti-social forces
III-3 Relationship with politicians
III-4 Initiatives towards society, regions, and theenvironmentIII-5 Abidance by the rules of different countries

Enhancing Thorough Corporate Governance

Ensuring Thorough ComplianceCorporate Governance
Philosophy

Risk Management
Philosophy

Business Continuity Plan
(BCP)

Preventing Wrongful
Conduct

So that we can raise corporate value andbe a trusted company that meets the
expectations of its shareholders and otherstakeholders, the Sumitomo RubberGroup positions corporate governance as
one of its key management tasks. To thisend, we strive to ensure efficiency in all
aspects of management and improvetransparency by continuously strengthening our internal control systems.
Sumitomo Rubber Industries has
Corporate Auditors and a Board of Auditors. To boost management supervisory
functions, three of the five corporate
auditors are outside auditors. As well, allof our outside directors (two outside
directors and three outside auditors) areregistered as independent directors inaccordance with the rules of the Tokyo
Stock Exchange so that there is no conflict of interest with regular shareholders.

The Sumitomo Rubber Group defines
risk as a “factor that may interfere withor exert a negative effect on the smooth
execution of business activities or theachievement of management objectives/strategies based on the Group’s
management philosophy.” To reasonably reduce or minimize risks, we first
identify them, assess their relative
importance, and dedicate an appropriate amount of our operating expenses
and efforts to the highest priority risks.
We determine the relative importance of risks by taking into account not
only financial impact but also whether
we (1) ensure quality and safety, (2)maintain a good relationship with stakeholders, (3) comply with laws and regulations, and maintain corporate ethics,and (4) abide by the Sumitomo BusinessSpirit, Group Philosophy, and Group Codeof Conduct.
In fiscal 2013, were-analyzed company-wide risks and identified important risks andnew risks. In fiscal 2014,
we will continue withmeasures for importantrisks and step up risk management at our worldwide
business sites.

Having experienced two major natural
disasters in recent memory, the Sumitomo Rubber Group positions earthquake
preparedness as a central theme in its
business continuity plans (BCPs).
So that we can protect human
lives and be able to continue productdeliveries to customers as soon as possible following a disaster, by fiscal 2013
we completed formulating all measuresfor earthquake BCPs at the Kobe Head
Office and the Tokyo Head Office. We
are now carrying out drills to test theviability of the BCPs we formulated.
We will also apply our BCPs on a
global scale, including all of our overseas production bases, so that theseplans cover our entire worldwide supply
chain.

We drive home to our employees theimportance of avoiding all wrongful conduct through our Corporate Code of
Conduct, which includes rules to forbid
private monopolies, unfair competition,and business dealings; forbid bribery; andinsulate ourselves from anti-social forces.
In fiscal 2013 at our worldwide
business sites, we strove to familiarize
employees with our Corporate Code of
Conduct, conduct legal risk assessment,
and ensure thorough compliance in all
aspects of our business. We held training
seminars specifically designed for ouroverseas representatives and provided
information via our intranet to deepen
their understanding of the Corporate
Code of Conduct. In line with our overseas business expansion, in fiscal 2013
we conducted compliance risk assessments for our overseas subsidiaries andcontinued training for local staff, as wellas added group training for humanresources managers at local companies, all with the aim of deepening andexpanding our compliance efforts.

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. Also in fiscal 2013 wecovered a number of topics in our educational efforts; for example, we held alecture for managers on current restrictions on bribes (attended by 110 managers), and briefings on export controls,

the Subcontract Act, and interim measures to deal with the increase inJapan’s consumption tax. Our groupcompanies both in Japan and overseas
also held a range of briefings.
We are also making use of our Legal
Department’s intranet to provide a rangeof regularly updated compliance information, just one more of our ongoing efforts
to ensure that all employees are compliance-aware in all their work activities.

Compliance training

BCP drills

35

SUMITOMO RUBBER GROUP CSR REPORT 2014

SUMITOMO RUBBER GROUP CSR REPORT 201436

I

CSR Activity Reportn t e g r i t y

In t e g r i t y

s t a k e h o l d e r s

Integrity for Stakeholders

Promoting Dialogue with Stakeholders
Satisfying Products andServices for Customers

Tire BusinessIndustrial andOther Products Business

National Customer Service Skills Contest

Products that Contribute to Society

Since fiscal 2006, we have held the National
Customer Service Skills Contest at ourcompany stores. At the eighth edition of
the event in fiscal 2013, 10 people who won
their preliminary rounds competed in thenational final by doing role-plays simulating
the flow of interaction with customers.
The fiscal 2013 finals featured two
female sales staff for the first time ever,with Saori Yamada of the Tire SelectKanazawa Chuo store of Dunlop Hokuriku
becoming the first women ever to win.
Company stores will continue to servewith the customer’s viewpoint in mind
as they create more and more fans of
Dunlop products.

In fiscal 2010, a new product nicknamed“gloves born from trees” was released by
Dunlop Home Products Ltd., a manufacturer of gloves and other daily products
for end consumers. Under the 1 Pair for
1 Love initiative, the company donates tovarious worthy causes; for example, foreach pair of gloves sold 1 yen goes totree-planting activities in Malaysia (seepage 24), the Pink Ribbon breast cancer
fund run by NPO J.Posh, and education
activities encouraging men to do morehousework and child-rearing.

The Voiceof Our
Employees

Listening Closely to Customer Hopes
Creates Greater Trust

Saori Yamada
Tire Select Kanazawa Chuo, Dunlop Tire Hokuriku

Last year I was eliminated in the regional preliminaries of the National Customer Service Skills
Contest, but thanks to the support of mycolleagues and a lot of practice, a little over a year
later I was the winner of this national contest.
I will never forget how ecstatic I felt when I heard
my name called as the winner.
I have always made it a point to listen to
customers. Serving customers is not about
me—it’s about them. What do they want to do?
What are they looking for? I always try to answer
these questions so that I can recommend exactly
what they are looking for. This satisfies them andcreates greater trust for those of us who servethem. I will never stop smiling as I strive to create
an atmosphere where customers can talk about
anything with total peace of mind.

Tree planting
in Malaysia

Pink Ribbon
breast cancer
fundSports Business
Customer Support
Dunlop Sports Co., Ltd. constantly works
to boost its customer support capabilities;
for example, it has established the Customer
Service Office and After Service Centers.
In fiscal 2013, the company received
many inquiries about its new golf clubs,
XXIO and SRIXON X Series. To respondquickly and exactingly to these inquiries,
and thus boost customer satisfaction,

the company increased the number ofcustomer service staff.
We also try to reflect customer
opinions as soon as possible in new
product development and quality
improvement, as well as in advertising on
our website and other media, in catalogs,
and in a whole range of promotions.

SUMITOMO RUBBER GROUP CSR REPORT 2014

Educating men
to do morehousework andchild-rearing

1 yen donated for every pair of gloves soldRole play at the National Customer Service Skills Contest
The customer service skills instructor Mr. Watanabe (left) plays the customer,
and Ms. Yamada (right; the eventual winner of the contest) plays a store staff member

37

f o r

Product website

Promoting CSR Procurementin Cooperation with Suppliers

Communication with
Shareholders and Investors

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

The Sumitomo Rubber Group uses every
opportunity to explain its corporate
management and business activities toshareholders and analysts. For example,
it holds general shareholders’ meetings
and quarterly briefings for analysts andinstitutional investors. Since fiscal 2010,
we have surveyed individual shareholders
with a questionnaire every September.
We put as many of the comments andquestions raised in the questionnaire as
possible into our Information for Shareholders leaflet issued in March of thefollowing year.

Company performance briefing

Continuous Social Contribution
CSR FundIn fiscal 2009, Sumitomo Rubber Industries
established a CSR fund for the financial
support of groups working to solve
social problems in the regions where wehave business sites. With the fund, alldonations from employees are matchedby the company, and organizations
receiving funding are selected by ourbusiness sites and an NPO intermediarysupport center.
In fiscal 2013, the fund donateda total of 8.05 million yen to 29 organizations in the six prefectures ofFukushima, Tokyo, Aichi, Osaka, Hyogo,
and Miyazaki.

Cooperation with
NGOs and NPOsThrough cooperation with NGOs andNPOs, we take part in exchanges anddialogue with a wide range of stakeholders. As well, towards reconstructionof areas stricken by the Great East Japan
Earthquake of March 2011, our employees
work with local NPOs in volunteer work
such as raising seedlings.
The Kobe Empower Center, anofficially specified nonprofit corporationand SEIN, another specified nonprofit
corporation provide our employees withinformation on volunteer opportunities.
Our employees have also been taking
part since fiscal 2012 in the KOBE ALIVE2012 Yosakoi Dance Festival sponsoredby Sasso Japan, specified nonprofit corporation. We will continue to provide
every opportunity possible for joint
action with NPOs that fosters mutual
learning and information exchange.

Cooperative farming event in Kiriyama.
The aim is to utilize abandoned farmland
and revitalize areas through agricultural operations

SUMITOMO RUBBER GROUP CSR REPORT 201438

Stakeholder

Dialogue

40 Years at the Shirakawa Factory

How Can We Contributeto Local Society?
Located in Shirakawa City, Fukushima Prefecture, the Shirakawa Factory is one of Japan’s largest tire production
facilities. We have continued to operate the factory since
the beginning with the intent of making it a factory inharmony with nature, that does not pollute, and that ispart of the community.
In August 2014, the Shirakawa Factory celebrates 40
years of operation. Prior to this, in April 2014, we held a
dialogue with stakeholders with the aim of finding out
what we can do in future as a locally rooted production
facility. The event allowed us to gather a range of opinions
and thoughts from the municipal government, resident
associations, local volunteer groups, and other stakeholders.

Dialogue Participants
Local Stakeholders• Shigemi Fukaya, Kurabeishi Residents Association• Masakatsu Fukaya, Shirakawa Municipal Industry Department• Atsuko Fujita, NPO Omotego Volunteer Network• Tadashi Hongu, Nodejima Regional Revitalization Project

Sumitomo Rubber Industries, Ltd.
Shirakawa Factory• Kenji Saito, General Manager• Shigemi Kumada, Health and Safety, General Affairs• Yayoi Haraikawa, General Affairs• Satomi Ariga, Human Resources
Head Office• Toshiaki Hojo, CSR Promotion Office General Manager

by Making the Local Scenery
C ontributing
Greener
In fiscal 2009, Sumitomo Rubber Industries, Ltd. launched its
One Million Trees for Local Forests project with the goal ofplanting 1 million trees over 20 years. The project takes placeat nine locations we call GENKI Forests around the country.
Upon its opening in 1975, the Shirakawa factory beganplanting trees and it is the only company in the Sumitomo
Rubber Group to have a 14-ha GENKI Forest on its premises.
The Shirakawa Factory also has its own project, the 10,000
Sakura Project, begun in 2008 to plant Japanese cherry trees.
A total of 5,390 had been planted as of the end of fiscal
2013. We are growing approximately 4,400 seedlings that
local citizens are helping us plant, and seedling varieties
include Yoshino cherry, Kobushi magnolia, Quercus
myrsinaefolia (evergreen oak), and Kousa dogwood. We also
support Project D, an initiative to restore the forests
destroyed in the tsunami following the March 2011 Great
East Japan Earthquake, and we are growing acorn seedlings
to send to the stricken areas.
In addition, we are growing 602 trees planted by children of a local kindergarten, and we plan to present theseedlings to the children on their final day at kindergarten.

Opinions and Requests from Fukaya, Shirakawa
Municipal Industry Department
If current trends continue, it is estimated that by the end of thiscentury Fukushima Prefecture’ s average temperature will be 5°C
higher and 90% of the sandy beaches will be gone. Sumitomo Rubber’s
greening activities are a significant gesture in the fight to prevent
global warming.
The Shirakawa municipal government is conducting its own greening activities, which include fixing up the flower gardens in
Shirakawasekinomori Park. We would love to receive donations of trees
such as Kobushi magnolia, yulan, and baby’s breath, whose white
shades conjure up an image of our city, Shirakawa, meaning “white river.”Opinions and Requests from Hongu, Nodejima
Regional Revitalization Project
Sumitomo Rubber is offering a wonderful moral education by growing
seedlings that children planted and then presenting these seedlings
to the children upon completion of kindergarten. Whether planting
trees or volunteering in some other way, it’ s important that children
experience these things. I’d like to see Sumitomo Rubber extend suchactivities to elementary schools.

Opinions and Requests from Fujita, NPO Omotego
Volunteer Network
In Omotego in Shirakawa City is a plant called Scirpus pseudo-fluitans, a designated endangered plant that in Japan only grows wild
here. Sumitomo Rubber employees have helped us preserve theseplants by weeding the ground under them.

Overview of Shirakawa FactoryThis is the flagship tire production Factory of Sumitomo
Rubber Industries, Ltd. It operates 24 hours a day, 347
days a year, turning out more than 10,000 tires monthly.
Location:

1 Hirokubo, Kurabeishi,
Shirakawa, Fukushima 961-0017,
Japan
1974
1,687 (as of end of December 2013)
607,800 m2

Shirakawa
Factory

Opened:Employees:
Site area:
Main products: Automobile tires

Masakatsu Fukaya
Shirakawa Municipal
Industry Department

Kenji Saito
General Manager

Yayoi Haraikawa
General Affairs

Shigemi Fukaya

GENKI Forest at the Shirakawa Factory

Kindergarten children in Shirakawa planted acorn seedlings

The children’s acorns are being carefully nurtured
by Sumitomo Rubber Industries, Ltd.

Atsuko Fujita

Tadashi Hongu

Satomi Ariga

Toshiaki Hojo

Shigemi Kumada

NPO Omotego
Volunteer Network

Nodejima Regional
Revitalization Project

Human Resources

CSR Promotion Office
General Manager

Health and Safety,
General Affairs

Kurabeishi Residents
Association

39

SUMITOMO RUBBER GROUP CSR REPORT 2014

SUMITOMO RUBBER GROUP CSR REPORT 201440

Regions Through Support
R evitalizingof Volunteers
We began volunteer activities at the Shirakawa Factory in1994 and since then have strived to respond to the requestsof local citizens. In fiscal 2013, a cumulative total of 1,243
Sumitomo Rubber employees took part in activities including
cleaning the Taiyo no Kuni seniors’ hospital and beautifying
local tourist attractions, and working as support staff at a
local sports festival and other events.
Under a CSR fund involving the entire Sumitomo RubberGroup, we provide financial support to organizations providing services such as disaster relief, traffic safety, and assistancein various activities that revitalize communities. In fiscal 2013,
we provided financial support to five organizations in Fukushima Prefecture including the Omotego Volunteer Network andthe Nodejima Regional Revitalization ProjectOpinions and Requests from Fukaya, Kurabeishi
Residents Association
Before filling the rice paddies with water in March, our residents association cleans the irrigation channels and picks up litter. We’ d like toplant flowers and thus boost local pride. But we’ d also like to go
beyond just planting flowers for the sake of all the car traffic going
through our town. This past winter we had a lot of snow and somebranches on the Japanese zelkova trees died, so we had to cut theseoff. It would be great if we could get some help with these activities.

Sumitomo Rubber industries, Ltd. has beencleaning the Taiyo no Kuni seniors’ hospital
every year for 19 years

Opinions and Requests from Fujita, NPO Ometego
Volunteer Network
We’ ve received financial assistance via Sumitomo Rubber CSR fundsince 2010. And we are so grateful that for more than five years
now Sumitomo Rubber employees have volunteered to help with afestival we hold every March.

Opinions and Requests from Hongu, Nodejima
Regional Revitalization Project
We are grateful for the financial support we have received for the past
two years. Farmland has been abandoned in our district and we’ ve lostour beautiful rural scenery. We wanted to beautify at least some of our
local environment, so we began growing flowering vegetables aroundthe elementary school. But because projects often end when thefinancial support ends, we have been trying to earn income by making
rapeseed oil from the rapeseed we grow and udon noodles from thewheat we grow, and selling these as local gourmet specialty items. The
municipality has certified these as local brands and this has expanded
our sales channels. Our main project, though, is growing buckwheat
and then selling buckwheat noodles at local events.

Opinions and Requests from Fukaya, Shirakawa
Municipal Industry Department
As citizens’ needs become more diversified, it becomes increasingly
difficult for the government to deal with all the challenges. I am extremely
grateful to Sumitomo Rubber for its ongoing support of local organizations through its CSR fund. I hope the company continues to help
foster the network of concerned citizens and contribute to even greater
revitalization of our region.

Stakeholders are eager to give their opinions at dialogue sessions
like thisWe offer our full support to sporting events(Sumitomo Rubber-sponsored softball tournament)

Reconstruction Support,
O ngoing
3 Years Later
The Shirakawa Factory was damaged in the March 2011 Great
East Japan Earthquake, but thanks to support from the rest of
the Sumitomo Group it managed to begin operating again in
April. The factory then decided to lend a hand to the local
community and, after consulting with the local government,
launched the GENKI Festival. With the aim of making thoseliving in disaster shelters and temporary housing “GENKI”(happy and healthy) again, employees cooked and served fried
noodles, and distributed goods donated from all over Japan.
The GENKI Festival continues to be held every year.
To lift the spirits of children in Shirakawa who had notbeen able to play outside, in fiscal 2012, using fallen leaves
and pine cones sent from Sumitomo Rubber sites around
Japan, we made a giant autumn playground in the local gymnasium to remind children of the joys of playing in nature.
Opinions and Requests from Fukaya, Kurabeishi
Residents Association
Although the Soseki district suffered relatively minor damage from
the March 2011 earthquake, we are preparing for future disasters byhaving the fire brigade conduct emergency drills. Sumitomo Rubber
lends us their sports field for the use of our drills, and I hope this willraise everyone’s awareness of the need to prepare for disasters.

The GENKI Festival started out as part ofreconstruction efforts after the March2011 disaster

Opinions and Requests from Fujita, NPO Omotego
Volunteer Network
During the Chuetsu earthquake and other past disasters, we went tooffer assistance. But the Great East Japan Earthquake was the first time
we were on the receiving end of assistance, and this really made us think
about what it means to lend a hand. Last year, I visited Minamisanriku
Town with assistance from the Sumitomo Rubber CSR fund, where
I understood that the true meaning of exchange is the coming and goingof people assisting each other. So far, we had only offered assistance,
and we felt we were burdening those who had to come and help us. But
I have learned that receiving assistance is just as important as giving it.
That’s why I want to help out in any way I can in Sumitomo Rubber
events and initiatives like the GENKI Festival and the GENKI Forests.
Although the disaster is fading from memory after three years, I still sometimes
hear cases of people dying alone in the stricken areas. And there will probably be more disasters in future. I hope Sumitomo Rubber will take advantage of its nationwide business network by having its bases become centersof relief and support for the local community in case of a natural disaster.

Opinions and Requests from Fukaya, Shirakawa
Municipal Industry Department
When the earthquake and tsunami hit, the municipality did everything it
could to restore things to normal. But we had a lot of assistance fromneighborhood associations, companies, and emergency volunteers in doing
things like preparing meals and running the shelters. At that time, not only
did the volunteers make the disaster victims feel better and at ease, theyalso warmed the hearts of municipal employees. The Hanokidaira landslidein Shirakawa City claimed the lives of 15 people. We are planning to makethe site into an emergency shelter and a park to commemorate the disasterand reconstruction. I hope Sumitomo Rubber can help out with things
like planting trees in this park.

Disaster-stricken children had not been able to play in nature
outside–so Sumitomo Rubber industries, Ltd. brought thenature inside for them

Stakeholder opinions are taken seriously and reflected in our
activities

Other Opinions and Requests

Conclusion of Dialogue

From Participants

From the Shirakawa Factory of Sumitomo Rubber
Industries, Ltd.

Shirakawa City has three major tourist attractions: Shirakawanoseki, Nanko Park, and Komine Castle. To show tourists how
wonderful our city is and to boost its image, I would like to
see cleanup and beautification activities at these and othertourist attractions.
I would like to see more opportunities for Sumitomo Rubber topublicize its company spirit and its contributions to society.
Japan’s culture of volunteering and community service is still
not very deeply rooted, but if companies publicize their contributions to society then I think this will help spread the cultureof volunteerism.
I would like to see Sumitomo Rubber play a role in education;for example, by sending employees to teach about how tires are
manufactured as part of the integrated learning classes held byelementary and junior high schools. The company should also
contribute to art and culture in order to enrich people’s lives.

Our commitment to contribute to society has been passed down
through the generations as the Sumitomo Business Spirit. We
believe that social contribution is an integral part of our business,and this dialogue with stakeholders has given us valuable opinions
and requests and has proven a valuable opportunity for us to think
about how we should contribute to communities.
It has also reminded us of the importance of two-way communication. We will continue to listen closely to the hopes of volunteer
organizations, and national and local governments, and put theirideas into activities that benefit all parties involved.
In August 2014, the Shirakawa Factory celebrated its 40th
anniversary. Our goal is to use more opportunities like this to communicate with our local stakeholders so that we can grow towards
our 50th anniversary, and beyond that to our 100th anniversary.

Visitors listen to an
explanation inside
the Shirakawa Factory

41

SUMITOMO RUBBER GROUP CSR REPORT 2014

SUMITOMO RUBBER GROUP CSR REPORT 201442

Dunlop Golf Club
Corp.

Site Report

Factories in Japan

Shirakawa City,

Shirakawa Factory Fukushima Prefecture

Nagoya Factory

Toyota City,
Aichi Prefecture

1,687

Number of Employees

1,321

Opened1974

Opened1961

Automobile tires

Achieved Complete Zero Waste Disposal

2004

In June 2013, employees visited a kindergarten in
Shirakawa City and helped children plant acorns.

Miyazaki Factory

Miyakonojo City,
Miyazaki Prefecture

Main Products

Automobile tires

Achieved Complete Zero Waste Disposal

2004

A croquet field was built on the factory premises
and is being used by employees and local residents.

Ichijima Factory

Tamba City,
Hyogo Prefecture

Number of Employees

227

Number of Employees

3,594

Number of Employees

Opened1989

Opened1997

OpenedGolf clubs

Achieved Complete Zero Waste Disposal

2006

1,435

Number of Employees

199

1976

Opened1996

Automobile tires

Main Products

Achieved Complete Zero Waste Disposal

2004

Main Products

Golf balls

Achieved Complete Zero Waste Disposal

2005

Izumiotsu City,
Osaka Prefecture

Brazil Factory

Number of Employees

The money raised from recycling aluminum cans
was used to buy interlocking foam mats that were
donated to a local daycare center.

Employees volunteered at a seniors’ home inChangsha City.

568

Opened2012

Main Products

Automobile tires

Thailand Factory

Kakogawa City,
Hyogo Prefecture(Natural Rubber Processing)

Udonthani,
Thailand

Manufacture/sale of retread tires

Achieved Complete Zero Waste Disposal

2010

Automobile tires

Achieved Complete Zero Waste Disposal

2009

Number of Employees

565

OpenedMain Products

2013
Automobile tires

Employees planted mangrove seedlings.

We helped our futsal and soccer teams enter the
local company leagues

Zhongshan Factory (China) Guangdong,
China

Vietnam Factory(Zhongshan Sumirubber Precision Rubber Ltd.)(Sumirubber Vietnam, Ltd.)Hai Phong City,
Vietnam289

Number of Employees

509

Number of Employees

1,013

2010

Opened2001

Opened2007

Main Products

Natural rubber products

Achieved Complete Zero Waste Disposal

2013

Malaysia Factory

Business Outline

2006

OpenedKobe City,
Nakata Engineering Hyogo PrefectureCo., Ltd.

1972

5,868

OpenedNumber of Employees

SRI Engineering
Ltd.

OpenedNumber of Employees
Main Products

Paraná,Brazil(Sumitomo Rubber do Brasil Ltda.)

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

Dunlop Retread
Service Co., Ltd.

Number of Employees
169
Opened2003
Business Outline
Design/manufacture of metallic
molds for tire production
Achieved Complete Zero Waste Disposal
2008

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

Local citizens are invited to the factory for tours andenvironmentally themed briefings.

58

2006

Thailand Factory

Hunan,
China

Books were donated to a nearby elementary school
and kindergarten to help the children learn towards
a brighter future.

Number of Employees

Achieved Complete Zero Waste Disposal

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

Employees volunteered to clean wheelchairs at a
nearby seniors’ home.

Kakogawa City,
Hyogo Prefecture

2008

2004
Automobile tires

Employees gathered seeds in Sushan Park as part ofenvironmental protection efforts.

In July 2013, elementary school children had anenvironmental education class as they were given atour of the biotope on the Miyazaki Factory premises.

Ono City,
Hyogo Prefecture

Achieved Complete Zero Waste Disposal

Main Products

To prevent an outbreak of dengue fever, employees
joined in efforts to exterminate mosquitos in the area.

(Sumirubber Thai Eastern Corporation Co., Ltd.)

OpenedAutomobile tires, golf balls

2,050

In November 2013, employees joined the local fire
department in evacuation drills.

Number of Employees
437
Opened1944
Main Products
Automobile tires,
Precision rubber parts for medical equipment
Achieved Complete Zero Waste Disposal
2005

Kakogawa Factory

Number of Employees

Main Products

Jiangsu,
China(Sumitomo Rubber (Changshu) Co., Ltd.)

Factories overseas

Izumiotsu Factory

Number of Employees
Main Products

Affiliates in Japan

Changshu Factory (China)

Cikampek,
Indonesia(P.T. Sumi Rubber Indonesia)

Main Products

Let’s look at some of the CSR activities at Sumitomo Rubber’s six factories in Japan, 10 factories overseas,
and 14 affiliates in Japan.
All of these business sites carry out ongoing efforts to contribute to local communities.

Indonesia Factory

Miyakonojo City,
Miyazaki Prefecture

Number of Employees
Business Outline

124

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

Achieved Complete Zero Waste Disposal

2008

Main Products Precision rubber parts for office machines

Achieved Complete Zero Waste Disposal

Achieved Complete Zero Waste Disposal

2008

Employees grew about 400 mango seedlings using
seeds from mango trees on the factory premises.

Thailand Factory

Kedah,
Malaysia(Tennis Balls)(Sumirubber Malaysia Sdn. Bhd.)

1914

Main Products Precision rubber parts for office machines(Srixon Sports Manufacturing (Thailand) Co., Ltd.)

602

Number of Employees

360

Opened1981

Opened2007

Achieved Complete Zero Waste Disposal

Employees planted trees at a nearby high school.

Prachinburi Province,
ThailandNumber of Employees
Main Products

2009

Rubber gloves
2010

Main Products
Achieved Complete Zero Waste Disposal

Tennis balls
2011

See the website for examples of
CSR efforts at Sumitomo Rubber
factories in Japan and overseas,
and affiliates in Japan.
(Scheduled to go online at end of
July 2014.)
http://www.srigroup.co.jp/
csr/sitereport/index.html

Employees took part in tree-planting activities in anindustrial park.

43

SUMITOMO RUBBER GROUP CSR REPORT 2014

Employees weed the area around the company
every summer.

Every year, employees clean up the area around thebus stop of the company shuttle bus.

To maintain the ecosystem of a local river, employees
filled the river with mud-balls containing bacteriathat naturally purify the water.

Employees celebrated Mothers’ Day by planting
trees at local schools.

SUMITOMO RUBBER GROUP CSR REPORT 201444

Materiality of CSR Activities

Establishing Materiality Through Dialogue With Stakeholders

Ongoing Communication With Stakeholders

To energize our CSR activities and become a corporate group trusted
by society, in 2008 the Sumitomo Rubber Group formulated its Basic
Philosophy of CSR and its CSR Guidelines (five areas comprising 13
indicators) made up of the five areas of Green (green initiatives), Ecology (reducing the environmental impact of business activities), Next
(development of next-generation technologies and products), Kindness(kindness to employees), and Integrity (integrity for stakeholders). We
have since then used the CSR Guidelines as a basis for setting annual
targets for our activities that we manage through the PDCA cycle.
In fiscal 2013, in order to carry out CSR based on input from stakeholders, we compiled the opinions of stakeholders that we gathered fromquestionnaires administered in fiscal 2011 and 2012. Using this data, weestablished new indicators of high importance (in terms of materiality:
importance of CSR issues to stakeholders) in our CSR Guidelines.
We will continue to administer a range of questionnaires andhold dialogue with stakeholders through daily business in order togauge changes in society. This allows us to identify materiality andthus reform our CSR practices where necessary. In this way, ourCSR activities are constantly evolving.

Because we are obligated to fulfill our responsibility to stakeholders and understand what they expect of us, the Sumitomo
Rubber Group places great importance on ongoing communication with stakeholders.
Besides taking every opportunity for dialogue in our daily
business, we communicate regularly through a range of media,
including pamphlets, websites, briefings, and various events.
We believe that listening closely to stakeholders andresponding to their requests and expectations will make us acompany trusted by the public. That’s why our CSR activities
emphasize dialogue.

Surveys and Questionnaires for Stakeholders
1) Supplier CSR Interview Survey2) CSR Report Readers Questionnaire (employees, business partners,
students scheduled to enter the Company)
3) CSR Report Online Group Interview Survey4) Employee Questionnaire 5) Comprehensive Consumer Survey6) Questionnaire to Individual Shareholders

Important Information for Stakeholders[Business Partners]
Safety/Health (risks and safety measures)
Human Rights/Labor (working hours and wages)
Fair Trade (from SCM perspective)[Consumers/Customers]
Marketing Communication[Shareholders/Investors]
Information Disclosure

Establish new indicators of high importancein the GENKI CSR Guidelines(6) Pursuing safety and comfort, economy, and quality(5) Developing environmentally friendly products

Employees

Employees
Obligations
Conduct fair and equal hiring, evaluation, and benefits
Ensure diversity
Provide work-life balance
Ensure occupational health and safety
Foster human resources

Customer Service Office, service call centers
Serving customers via sales and service divisions
Providing information via website
Product exhibits, other events

Shareholders, investors

Communication methods
Provision of information via in-house magazine and intranet
Discussions at labor-management meetings, and between
management and employee representatives
Compliance Counseling Office
Roundtable meeting with President
CSR Report questionnaire

Obligations
Return profits (through dividends)
Promptly provide financial information

Communication methods
General shareholders’ meetingNews releases and advertisements in mass media
Provision of various financial information: Fact Book, Annual Report,
shareholder newsletters, etc.
Provision of information via website
Performance briefings, etc.

(1) Helping to curb global warming by planting trees

Suppliers
Obligations
Conduct business dealings
Practice CSR procurement

Communication methods
Dialogue in daily business
Visits to suppliers, feedback
Questionnaires to suppliers
Briefings(2) Fostering better relationships with communities throughtree planting(4) Implementing worldwide environmental management

Contributing to Local Communities

Obligations(3) Reducing CO2 emissions(8) Creating a safe, employee-friendly workplace(13) Keeping social contribution in constant motion

Suppliers

Communication methods

Education/Awareness Raising[Business Partners]
Information Disclosure and Management
Fair Trade (organization and system)
Human Rights/Labor (various types of harassment)

Shareholders,investors

Sumitomo
Rubber Group

Customers
Develop and provide products that are safe to use
Promptly provide accurate product information
Protect customer information(7) Fostering human resource development and making jobs rewarding(12) Promoting dialog with stakeholders

Local community

Compare survey results to five areas of GENKI CSR Guidelinesand determine importance of stakeholder opinions

The GENKI CSR Guidelines (five areas comprising 13 indicators)(12) Promoting dialog with stakeholders

Customers(9) Achieving a work-life balance(10) Ensuring thorough corporate governance(11) Ensuring thorough complianceBusiness Management

Local community
Obligations
Contribute to community
Protect local environment

Communication methods
Participation in local events
Collaboration with NGOs/NPOs in social contribution activities
Participation in economic and industry associations
Dialogue with local government

Important Information for the Sumitomo Rubber Group45

SUMITOMO RUBBER GROUP CSR REPORT 2014

SUMITOMO RUBBER GROUP CSR REPORT 201446

Independent Verification Report

Third Person’s Comments
CSR Through Integrated Value Creation

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 21, 25-27) has been verified.
The target data for verification and the verification criteria used are as follows.

The Sumitomo Rubber Group’s CSR is characterized by its grand vision of, as President
Ikeda says, pursuing increased value for all stakeholders. CSR is central to the Group’s
management. This reflects the worldwide trend towards Michael Porter’s concept of

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)

‘creating shared value’. In fact, Sumitomo has been praised for products, like its
100% fossil resource-free tire, that reflect the vision.

Using KPIs for CSR
The 2014 CSR Report begins with CSR-Related Indicators, which are shown alongside
Main Financial Indicators (page 4). This shows that the Sumitomo Rubber Group

Katsuhiko Kokubu

places importance on both as KPIs (key performance indicators) and this point is key

Professor at the Graduate School ofBusiness Administration, Kobe University

to this year’s report. As well, in regards to assessing CSR achievements, considering

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 and Accounting” (Yuhikaku Publishing Co., Ltd.).

that many companies use vague self-assessment methods, I laud Sumitomo Rubber
for using percentage figures to clearly express its self-assessment (pages 21-22).
However, environmentally related achievement figures were somewhat low, which
may be partly due to the fact that the Group set high targets to begin with. I hope to
see this clearly explained and higher performance targets set in future. As for CSR
materiality, it is admirable that the company went into depth on this. However, theGroup could further improve its CSR transparency by clearly showing the relationshipbetween the results of materiality analyses, actual activities, and indicators.

Disclosure in Integrated Report
In identifying materiality and integrating both financial performance and CSR performance, the Sumitomo Rubber Group’s 2014 CSR Report satisfies the conditions of an
integrated report, the latest type of CSR report being employed worldwide. Late lastyear, guidelines on the framework of integrated reporting were published worldwide,
and integrated reports are widely believed to be the wave of the future. To continue
expanding business worldwide, it will become increasingly important for the
Sumitomo Rubber Group to sufficiently disclose information in an integrated manner.
I look forward to seeing the Group make further progress in this respect.

In response to the third person’s comments
I would like to thank Professor Kokubu for again, as in 2013, providing the third-party opinions on our CSR
Report, as well as providing valuable information by taking part in the Shareholder Dialogue section of thereport in fiscal 2013. In addition to a range of advice, Professor Kokubu’s positive comments will help set
us in the right direction in our future endeavors. Integrated reports are expected to become the worldwide
standard, and although this 2014 report still has way to go, I believe that the fact that Professor Kokubu
praised our financial performance reporting for its integrated stance has set the stage for the direction ofnext year’s report.
Professor Kokubu has told us about the importance of key performance indicators in the past and weplan to follow up on this. We will establish indicators that don’t just show Sumitomo Rubber in a positive
light but rather help us in making our CSR activities more transparent.

47

SUMITOMO RUBBER GROUP CSR REPORT 2014

Toshiaki Hojo
General Manager,
CSR Promotion Office

SUMITOMO RUBBER GROUP CSR REPORT 201448

Honors and Certifications from Outside Organizations

GreenGreen Initiative•Letter of appreciation from Osaka Governor for revitalization of a community forest at the
Sumitomo Rubber GENKI Forest in Konoyama, Kishiwada•

Miyazaki Factory honored by the Miyazaki Prefectural Government for social contribution activities•Sumitomo Thai Eastern Corporation Co., Ltd. (STEC) received the Ministry of Economy, Trade
Reducing
Environmental Impact

Ecologyand Industry Award in the Fiscal 2013 3Rs (Reduce, Reuse, and Recycle) promotion merit awards
sponsored by Japan’s Ministry of Economy, Trade and Industry (METI)•Izumiotsu Factory was runner-up in the business activities category of the Osaka Environment
Awards•Sumitomo Rubber received the highest environmental rating and a special commendation fromthe Development Bank of Japan•

Sumitomo Rubber (Hunan) Co., Ltd. certified for ISO 14001•ENASAVE 100 won Excellence Award in 10th Eco-Products Award•ENASAVE 100 commended as Environmental Achievement of the year at Tire Technology Expo
2014 in Germany••VEURO VE303 was awarded in the tire category of the 26th Nikkan Jidosha Shimbun Product Awards•In 5th survey of fuel-efficient tires* conducted by JMA Research Institute Inc., Dunlop’s

Editorial Policy
The Sumitomo Rubber Group has been conducting CSR activities
in five key areas represented by the GENKI acronym (see page20) 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 2013.
As our key tasks for the near future, we have positioned“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 innovation, and entering new businessfields. For each of these three facets, this report contains afeature article: Developing Environmentally Products, CSR in
Emerging Countries, and Spreading Damping Technology.
Basic corporate CSR information and detailed data notcovered in this report are available on the CSR Activities
section of the Sumitomo Rubber Industries website (scheduled to go online at end of July 2014).

Target Readers

Disclaimer

Publishing Date

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

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

Period of the Report
Fiscal 2013 (January 1, 2013 to December 31, 2013), with some
information from outside of this period
June 2014 (planned publishing date for the next edition: June 2015)

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.

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

Type of Reporting Media

Two models of WINTER MAXX series of studless tires won Good Design Award

Feature reports

fuel-efficient tire was the leading seller at the top two volume auto parts retailers for the
fourth year in a row since 2010

Next

* Fuel-efficient tires are those that meet the standards for rolling resistance and wet grip as defined by (JATMA) Japan
Automobile Tyre Manufacturers Association

Next-Generation
Product Development

Reports of activities
undertaken ina specific year

•Sumitomo Rubber was first in 2013 rankings by Nikkei Architecture (published by Nikkei BP••Indonesia Factory won QC Circle category of 26th Toyota Kaizen Festival, as well as Gold
Position honors in individual category•Indonesia Factory was awarded in Daihatsu Superior Quality & Delivery Awards 2012/13•Indonesia Factory was awarded in Toyota Quality Awards 2013
•Indonesia Factory was awarded in 2013 Suzuki Best Partner Awards

Kindness

Detailedreportranked) of manufacturers of earthquake-proof and seismic-damping building materials

All models of DUNSLOPE Lite SLIM transportable wheelchair ramp certified for use as nursing
care and hospital equipment by Association for Technical Aids, Inc.

Kindness to Employees

Brochure•Sumitomo Rubber certified for Kurumin logo, presented by Japanese government to companies
that strive to help employees raise their children

Reporting centered around
our GENKI CSR Guidelines

Equipment Tire Satisfaction Index Study conducted by J.D. Power Asia PacificIntegrity

Integrity for Stakeholders

49

Replacement Tire Satisfaction Index Study conducted by J.D. Power Asia Pacific

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

Accessibility of Report
The report gives readers an overall picture of ourbusiness by starting with main financial indicators andCSR indicators based on our GENKI CSR Guidelines.
Where possible, we include capital items besides financial.
P3-4
We use illustrations and diagrams to show examples of
how we put the five areas of our GENKI CSR Guidelines
into action.
P19-20•Dunlop tires for minivan segment were first in customer satisfaction in 2013 Japan Original•Dunlop tires for mini-car/compact car segment were first in customer satisfaction in 2013 Japan

Updatedfrequently

WebsiteTo mark its 40th anniversary, the Shirakawa Factory helda dialogue session with stakeholders. The aim was tobuild stronger relations with stakeholders and include
them in future efforts to contribute to the community. A
summary of this gathering is included in the report.
P39-42
We report on the process of selecting materiality together
with stakeholders, and on the ways that we communicate on a regular basis with stakeholders.
P45-46

Environmentally Friendly Printing
Eco Paper

Eco Printing•Fiscal 2013 survey by Sumitomo Rubber Industries showed a 93% rate of customer satisfaction
with Dunlop WINTER MAXX tires•

Sumitomo Rubber received Bronze Prize in newspaper ad category of competition on
consumer-oriented advertising (hosted by Japan Advertisers Association Inc., supported by
Ministry of Economy, Trade and Industry)

SUMITOMO RUBBER GROUP CSR REPORT 2014

This report uses paper made from thinned
trees in order to promote thinning (which
improves forest health) and the effective
use of thinned trees.

Paper used for the report ismade from pulp derived fromappropriately-managed forests.

Printed using a waterless printing
process, which does not discharge
harmful liquids.

Printed using soy ink containing
no volatile organic compounds.

SUMITOMO RUBBER GROUP CSR REPORT 201450