CSR Report 2015

CSR Repor t 2015
FeatureCreation of Jobs in Morocco

Editorial Policy
This report outlines the business and CSR initiatives of theSumitomo Electric Group including its business strategies inthe ﬁrst half, and reports the Group's speciﬁc CSR activities ineach of the CSR core categories in the second half.

■ Period Covered by This CSR Report● In the introduction of our business activities, a representative■ Boundary of This CSR Report

product that contributes to solving social issues is picked out
from each of the business sections, and a person in chargeof the product presents our eﬀorts to oﬀer value through thebusiness (P11 to 15).
● The global business development of the Sumitomo ElectricGroup is described with the history of its businessdevelopment and relevant projects, and the presentation ofrelated indicators has been enhanced (P17 to 18). The
feature article focuses on our social contribution to the local
community through creation of jobs in Morocco, andintroduces the activities of Group companies and commentsfrom local employees (P19 to 24).
● The page on corporate governance presents a VOICE of an

outside director concerning the governance of Sumitomo
Electric and its CSR activities as a whole (P26).
● The Fifth Sumitomo Electric Group Stakeholder Dialogue

selected support of women's career development as the
subject, and opinions were exchanged between theparticipants (most of them were female workers), which are
introduced in this report (P54 to 56).
We have continued to make eﬀorts to facilitate understandingof the contents of this report as follows.
● In P33, the main targets and actual results in ﬁscal 2014, as

well as the targets for ﬁscal 2015, are summarized to
introduce our major activities in the CSR core categories.
● To

ensure the accuracy and completeness of theperformance indicators, we have engaged an independent
third party to provide assurance on them, and the indicators
subject to the assurance aremarked accordingly. In
addition, comments on our initiatives and disclosure from anexternal expert in this ﬁeld are published to enhance thecredibility.

● The acquisition of ISO 14001 certiﬁcation, environmental

impact data of main facilities and a table showing correlationof employee support programs with relevant laws are
published on the following website:（ http://global-sei.com/csr/download.html ）April 1, 2014 through March 31, 2015 (ﬁscal 2014).
Some activities conducted in ﬁscal 2015 are also covered.

Sumitomo Electric Industries, Ltd. and its consolidated
subsidiaries (354 companies)
In this CSR Report, Sumitomo Electric, the Company or ourcompany refers to Sumitomo Electric Industries, Ltd., Group
companies or aﬃliates refers to the consolidated
subsidiaries of Sumitomo Electric, and the Sumitomo ElectricGroup or the Group refers to Sumitomo Electric and its
Group companies.
● When quantitative information is disclosed, Sumitomo RikoCompany Limited, Nissin Electric Co., Ltd. and Sumitomo
Densetsu Co., Ltd., which are listed in stock exchanges inJapan, and their consolidated companies are excluded, andSumitomo Electric alone or only the Company and limited
consolidated subsidiaries are included in some cases. The
items referenced within such a speciﬁcally limited
boundaries are indicated in the text or footnotes in the tableor graph.
● The boundaries of the data compilation for

Corporate andBusiness Outline (P7) are Sumitomo Electric and 389
consolidated companies.

● For details of the scope of data collection for environmental

indicators, see Explanation of the Boundary in P63.
● The data in

Social Contribution (P73 to 76) also coversome of the equity-method companies.

■ Guidelines Referenced

GRI's Sustainability Reporting Guidelines Version 4This report presents information on the standard disclosures.
The GRI Content Index is published on the following website:（ http://global-sei.com/csr/download.html ）Environmental Reporting Guidelines 2012 issued by the
Ministry of the Environment of Japan.
■ Date of Publication

November 2015
(Last CSR Report: published in November 2014; and next CSR
Report: scheduled for release in November 2016)

Responses to ﬁndings by an external expert

The reporting boundary should be expanded〉〉While we have conventionally made eﬀorts to promote information disclosure, we will continue to seek expansion of

the reporting boundary to provide information on a consolidated basis. We will promote establishment of a system tocollect information of employees by gender and aim to disclose it promptly.

Thorough compliance should be ensured〉〉We have been committed to measures for thorough compliance including preparation and distribution of a compliancemanual, compliance training and development of Competition Law Compliance Regulations and an anti-bribery program.
In addition, we have expanded the scope of those who receive the training to employees of domestic aﬃliates, andlaunched regular compliance training sessions for managers in overseas aﬃliates with focus on prevention of bribery,compliance with competition laws, etc. We will continue to make eﬀorts to further strengthen compliance in the Group.

In order to enhance objectivity and transparency, the information disclosed in this report has been reviewed byan independent third party for assurance. The results are presented in P77. As a result of the assurance, wehave been authorized to use the mark shown on the right. This mark is the registration proof that CSR Report2015 satisﬁes the Environmental Reporting Assurance and Registration Criteria designated by the Japanese
Association of Assurance Organizations for Sustainability Information (http://www.j-sus.org/english.html).

01 CSR Report 2015

Assurance

Business Outline

03

Top Message

05

Basic Value Standards

07

Company Proﬁle08

Mid-term Management Plan VISION 201709

Our History and Business

11

Automotive

12

Infocommunications

13

Electronics

14

Environment & Energy

15

Industrial Materials

16

2014 Highlights

17

Global Business Expansion

19

CSR EYE

Basis for Management

Basis for Management

Business Outline
Governance

MOROCCOWe Create 17,988 Jobs
Group's CSR ActivitiesC O N T E N T S

Products & Services

Risk Management

29

Compliance

31

CSR Management

32

Relationships with Stakeholders

33

Main Targets and Actual Results in Fiscal 2014 /Main Targets for Fiscal 201534

Research & Development

37

Product Quality & Product Safety

Supply Chain

Core Category

Corporate Governance27

Supply Chain

Core Category

Human Resources

45

Diversity49

Human Resource Development

51

Safe and Sound Workplace

54

Fifth Sumitomo Electric Group Stakeholder Dialogue

57

To Eliminate Occupational Accidents

59

Environmental Management

64

Activities to Prevent Global Warming

68

Promotion of Resource Conservation and Recycling

70

Reduction of the Release ofHarmful Chemical Substances

71

Expansion of Environmentally Conscious Products

72

Activities to Conserve Biodiversity

73

Social Contribution

77

Independent Third Party Assurance Report

78

Comments from an External Expert

Core Category

Environmental
Preservation

Social Contribution

CSR Report 2015

Social Contribution

41

Environmental
Preservation

Supply Chain

Human ResourcesCore Category

Core Category

Products & Services

Group's CSR Activities

25

Core
Category

Governance02

To p M e s s a g e

Making Ef forts to Become aGlorious Excellent Company
Masayoshi Matsumoto
President & CEO

Sumitomo Electric Industries, Ltd.

Prefaceexchange rate fluctuations, in addition to past

I sincerely express my gratitude to our stakeholders fornumerical targets with higher ones, namely sales of 3,300

their continued support and understanding of thebillion yen and operating income of 200 billion yen, andSumitomo Electric Group's business activities.

also added a new target index of ROE of 8% or more to

We are striving to maintain our Glorious state, which isthe existing target index of ROA of 9% or more.

performance. As a result, we replaced the initial

an unchanging value for us as a corporate person basedon the Sumitomo Spirit and the Sumitomo Electric Group
Corporate Principles, and to achieve Excellent businessresults. Through these efforts, we aim to become a

CSR Core Initiatives

Glorious Excellent Company, which is our ideal state in

In fiscal 2013, we redefined the five CSR core categories,

the future. As a milestone on the way to the goal, we arenamely Products & Services, Supply Chain, Humannow committed to achieving the mid-term management

Resources, Environmental Preservation and Social

plan

by fiscal 2017. This year, weContribution, to further strengthen our CSR activities.

conducted an interim review of the plan while also

Since then we have promoted measures for the CSR

considering changes in the external environment thatpriority theme set for each of the categories to makecannot be controlled by a single company, such as sharp

efforts in a more focused manner.

03 CSR Report 2015

VISION 2017

Commission of its decision finding infringements of EUlines with unique features and future potential, which iscompetition laws in July 2013. The competition authority

also consistent with VISION 2017 and will consequentlyof China also imposed a surcharge on the Company forcontribute to society through business activities in a

its violation of the country's Antimonopoly Law in Augustsustainable manner. This year's report selects a2014. Following its investigation launched in January

representative product that contributes to solving social

2009, the European Commission imposed a surcharge on

issues from each of the business sections to present

us in April 2014 based on its decision that we had

progress in our commitment.

violated EU competition laws concerning the supply ofIn the Human Resources category,
diversity

promotion ofis set as the priority theme. Our Grouphigh voltage power cables. We would like to offer oursincere apologies to our stakeholders for this situation.

strict compliance with the Antimonopoly Law and prompt

overseas. Since the establishment of the Global HRM

recruitment of outside experts to conduct studies into

Policy in 2011, we have promoted initiatives to apply it toother infringement behavior, if any, in order to identify

actual systems, such as the preparation of a commonand eliminate conduct that violates the Act. Additionally,

personnel system and guidelines across the Group on a

we have conducted intensive training, enforced

global basis to develop the framework. We also adopted

Competition Law Compliance Regulations andofficers and equivalents in overseas subsidiaries asestablished a system to ensure the administration andGroup Global Executives

in 2014. Promotion ofmanagement of the Regulations by specialized

diversity is a priority initiative in VISION 2017 not only

organizations, in order to reinforce competition law

from a CSR perspective but also as a business strategy tocompliance by the entire Group. While the decisions byenhance our competitiveness.

the Japanese and other competition authorities

The priority theme in the Environmental Preservation

concerning automotive wiring harnesses and related

category is prevention of global warming. As the key

products, as well as high voltage power cables, applied

performance indicator for this theme, we have set theto violations that predate those preventative measures,target of reducing greenhouse gas emissions from our

we recognize the gravity of the situation with sincerity

global operations by 5% in fiscal 2017 from the fiscal

and will strive to implement fair business activities that2012 level. While also taking the expansion of ourmerit the trust of society, identifying competition law

business into consideration, we continuously promotecompliance as a top priority issue in our businessenergy saving and other measures for the conservation ofmanagement.

the global environment based on recognition thatenvironmental preservation is one of the most importantbusiness challenges.

Closing Remarks
Spirit that has a history of more than 400 years, andcategory, we continue to promote our activities in thecontinuously grown through many challenges andSocial Contribution category with focus on promotion ofdifficulties. Keeping adherence to compliance andsocial contribution activities at business locations andcorporate ethics in mind as the absolute foundation, we

contribution through the SEI Group CSR Foundation.

will develop our business activities and continue to grow

The CSR core initiatives are outlined above while theirwith the aims of becoming a Glorious Excellent Company

respective correlations with VISION 2017 are alsothat wins the trust of society including stakeholders andmentioned. Needless to say, we also have to further

contributing to the creation of a new society.

strengthen the corporate structure and ensure

This year is set as the first year of corporate governancecompliance so that our Group can progress in areform in Japan, and Corporate Governance Code hassustainable manner.

been established and published by the Tokyo Stock
Exchange. Sumitomo Electric has also adopted measures
to further enhance the transparency of the business

Compliancemanagement in a way to comply with the code.
support for our endeavors.

surcharge payment order from the Japan Fair Trade
Commission (JFTC) in connection to the supply of
automotive wiring harnesses and related products in

CSR Report 2015

Social Contribution

We sincerely ask for your continued understanding andAs mentioned in P29, Sumitomo Electric received aEnvironmental
Preservation

The Sumitomo Electric Group has inherited the Sumitomo

response, is the priority theme in the Supply Chain

Human Resources

share CSR value with suppliers and ask their positive

Supply Chain

While promotion of CSR procurement, which aims to

Products & Services

products, we have taken corrective actions including

resources in our Group companies both in Japan andCore
Category

2009 concerning optical fiber cables and related

our Group therefore depends on the active use of humanGroup's CSR Activities

In response to the on-site investigation by JFTC in June

about 40 countries around the world. Further growth ofGovernance

operates business with more than 200,000 employees in

Business Outline

January 2012, and was also notified by the European

innovation. This innovation aims to develop productBasis for Management

The priority theme in the Products & Services category is

04

Basic Value Standards

The Sumitomo Spirit
The Sumitomo Spirit grew out of the guiding principles set down in his later years by the founding father of the House of Sumitomo,
Masatomo Sumitomo (1585 - 1652), in Monjuin Shiigaki (the Aphorisms of Monjuin, which describes how a merchant should
conduct his business). The Sumitomo Spirit has been passed down and elaborated through the history of Sumitomo, which mainly
operated copper business. The essence of the Spirit was distilled in the Business Principles codiﬁed in 1891. Also integrated into
the Sumitomo Spirit are other beliefs and principles behind business decisions, and remarks made by Sumitomo managers, whichhave been handed down through generations. The pioneering ideas of the Sumitomo Spirit, which also reﬂect today's concepts ofcompliance and CSR, have been steadfastly inherited as a commonly held asset of Sumitomo Group companies.

Business Principles
Article 1

Article 2

Sumitomo shall achieve prosperity based on solid
foundation by placing prime importance on integrity andsound management in the conduct of its business.

Sumitomo's business interest must always be in harmony
with public interest; Sumitomo shall adapt to good times
and bad times but will not pursue immoral business.

Traditional Beliefs and Principles●

Attaching Importance to Technology

Sumitomo's original copper business centered on the nanban-buki(foreign-style) reﬁning technique, which at the time comprised theleading edge of smelting technology. The business policy of valuing
technology and tackling the development of new technology has
been a driving force in the evolution of Sumitomo business fromthe very beginning.
●

Respect for Human Resources

Sumitomo's history is accentuated with events that demonstrate
the great value that is attached to opinions of those working in theﬁeld. Over the years, Sumitomo has established a corporate culture
in which frank discussions are cherished and human resources are
given the utmost importance. Sumitomo has always considered thatpeople make the enterprise and attached importance to humanresources. This tradition has coexisted with the commitment
among Sumitomo personnel to character cultivation.

●

Long-Range PlanningThis principle is derived from Sumitomo's original experience incopper mine management which requires long-term, continuous
consideration. Business development with a future-looking,long-term view, complemented by a wider perspective to ensure
national and social interests, is one of the factors that have madeSumitomo distinctive.
●

Mutual Prosperity, Respect for the Public GoodThis phrase represents the principle that Sumitomo's businessmust beneﬁt not only Sumitomo but also the nation and society ingeneral, and everyone in Sumitomo is required to focus not only
on making money but always conduct business in harmony withpublic interests. Also demonstrated by its more than century-longeﬀorts to solve environmental problems in the Besshi Copper Mine,
this spirit has always remained unchanged at Sumitomo.

Monjuin Shiigaki (the Aphorisms of Monjuin)
Masatomo Sumitomo was born in 1585 of the late Sengoku Period, in Maruoka,
Echizen (now Maruoka-cho, Sakai-shi, Fukui Prefecture) as the second son of asamurai warrior family, but entered priesthood in Kyoto at the age of 12. His
intelligence led him to be given the name Monjuin, after Monju Buddhist saint who
embodies enlightened wisdom. He later left the priesthood and started his own
business to trade books and medicines, which was the origin of the House of
Sumitomo. Even after he left the priesthood, many people continued to ask for histeachings and respect his faithful instructions. The fact that the founding father was a
widely respected Buddhist priest is the unique feature of the Sumitomo Group. A
letter written by Masatomo Sumitomo (Monjuin) in response to a family member's
request for guidance on conducting business was Monjuin Shiigaki.

Banji-nissei

Figure of Masatomo
Sumitomo (Monjuin)※

Signboard of the
medicine shop operatedby Masatomo※(do your sincere best in not only business but also every aspect of your life)

Consisting of ﬁve articles, Monjuin Shiigaki contains ideas reﬂecting the unstablesocial conditions of Kyoto in the 17th century, when it was written. The preamble
admonishes us to pay attention to any matters including business and workwholeheartedly on everything. This precept “Banji-nissei” has been passed down
continuously, by way of hoping that each one of us in Sumitomo does not focus only
on making money but improves the personality and develops the character. This lofty
document urges us to persist in sincere and careful eﬀort and to cultivate goodcharacter.
The Sumitomo Electric Group positions this “Banji-nissei” as the keyword representing
the Sumitomo Spirit.

Calligraphy work Banji-nissei, which was given by
Chairman Wang Jianyi of Futong Group Co., Ltd.,
China to commemorate the launch of joint ventures※ Collection of Sumitomo Historical Archives

05 CSR Report 2015

On the occasion of Sumitomo Electric's centennial celebration in 1997, the Sumitomo Electric Group deﬁned the Sumitomo
Electric Group Corporate Principles as a new management philosophy arising from the Sumitomo Spirit. The Corporate
Principles underscore our basic policy of commitment to our important stakeholders--our clients, shareholders, society, theBasis for Management

The Sumitomo Electric Group Corporate Principles

environment and our employees--and rededicate the Group to the importance of compliance and trust.
Business Outline

Each company of the Sumitomo Electric Group shallOﬀer the very best goods and services to satisfy customer needs.

●

Build technical expertise, realize changes and strive for consistent growth.

●Contribute to creating a better society and environment,with a ﬁrm awareness of our social responsibility.

●

Maintain high corporate ethics and strive to become a company worthy of society's trust.

●

Nurture a lively corporate culture that enables employee self-improvement.

Governance●To realize a Glorious Excellent Company, which is the ideal state of the Sumitomo Electric Group, we must uphold the Sumitomo
Spirit and the Sumitomo Electric Group Corporate Principles as a basis of all business activities and conduct business with ourstrong will and sincerity in an honest manner. In September 2005, the Sumitomo Electric Group Charter of Corporate Behavior was
created to express the essence of our Group-wide code of conduct in a more straightforward and easy-to-understand manner, so
as to help each and every administrator and employee in the Group make judgments and act to realize the principles presented inGroup's CSR Activities

The Sumitomo Electric Group Charter of Corporate Behavior

the Sumitomo Spirit and the Sumitomo Electric Group Corporate Principles.

We will aim to provide useful and safe products andservices that will satisfy customers in all aspects
including quality and cost.

6. Fair and Proper Business Activities●

7. Conduct as a Member of Society●

We will aim to develop new, original and proﬁtablebusinesses and products by using our unsurpassed
creativity in meeting customer demands.

●

We will strive for consistent growth of the Sumitomo
Electric Group, by consistently conducting our businesses
with a global perspective and taking full advantage ofthe Group's dynamic business operations.

8. Harmony with the International Community●

We will contribute to the building of a sustainable
society, taking voluntary and active initiatives to preserve
the global environment.

5. Observance of Laws and Regulations
We will observe national and international laws andregulations and always act fairly and openly.

We will strive to respect personality and individuality ofthe employees and support their professional
development and career to enable self-realization.

10. Disclosure of Relevant Information andPromotion of Communication with Society●●

We will aim to disclose appropriate corporate
information to our various stakeholders, including
shareholders.
We will also promote good communication with society
through public information and hearings.

CSR Report 2015

Social Contribution●●

We respect the rights of all individuals and will endeavor
to make our workplaces safe, sound and energetic.

Environmental
Preservation●

As a corporate member of the international community,
we will respect the culture and customs of every regionof the world and contribute to the development of thoseregions.

9. Safe, Sound Workplace and
Employees' Growth and Development●

4. Contribution to Preservation of
the Global Environment

We will maintain a strong stand against any force thatthreatens public order and safety.

Human Resources

3. Growth and Development of
the Sumitomo Electric Group throughGlobal Business Activities●

We will contribute to creating a better society, with a
ﬁrm awareness of our social responsibility as a good
corporate citizen.

Supply Chain

2. Development of New andOriginal Businesses and Products●

We will promote fair, transparent and free competitionand sound trade.

Products & Services●

Core
Category

1. Provision of Useful and
Safe Products and Services

06Company ProﬁleSumitomo Electric Industries, Ltd.

Company Name
Established

April 1897

Incorporated

December 1920
Masayoshi Matsumoto

President
Capital Stock

99,737 million yen (as of March 31, 2015)

Head Oﬃce

4-5-33, Kitahama, Chuo-ku, Osaka, JAPANBusiness Conditions in Fiscal 2014
During fiscal 2014, the Japanese economy showed a gradual2014 recorded a revenue growth with net sales of 2,822.8

recovery with continuous improvement in corporate earnings

billion yen, a year-on-year increase of 9.9%. Our operatingand employment situation although personal consumption wasincome also grew by 12.0% from the previous fiscal year to

weak. From a global perspective, while the US economy

134.5 billion yen with an increase in depreciation expenses as

continued to recover and the European economy as a wholea result of upfront investment in the reinforcement of global

picked up, some regions showed uncertain situations such as a

production bases, as well as an increase in research andslowdown in the growth of the Chinese economy.

development costs aimed at future growth, offset by the

In the business environment surrounding the Sumitomo Electric

impact of cost reduction and the weaker yen. Net income alsoGroup, demand for wiring harnesses remained strong mainly inincreased significantly by 79.4% year-on-year to 119.8 billion

foreign markets, especially the US. Demand for cemented

yen with a major contribution of the exceptional gain from thecarbide tools, optical and electronic device products, opticalsale of the shares of Sumitomo 3M Ltd. (the trade name wasfibers and cables and other products also increased.

changed to 3M Japan Limited as of September 1, 2014).

Under these circumstances, our consolidated results for fiscal

Net Sales (Consolidated)

Operating Income and Net Income (Consolidated)(Unit: 100 million yen)

(Unit: 100 million yen)

30,00025,00020,0001,400

28,22825,68821,59920,593

20,3381,000

14,17015,000

8,904

1,345
1,201

1,200

16,468

869
800

667

589

600
10,000768

706

10,488

9,399

380

400

5,000

11,434

11,194

11,111

11,76011,518

1,198

1,038

200
0

0

2010

Overseas

2011

2012

2013

2014

Domestic

2012

2013

2014

(Fiscal year)

Net Income

Return on Equity (ROE) and Return on Assets (Note) (ROA)＊

Total Assets and Net Assets (Consolidated)（％）

29,25830,00010

9.1

25,54825,00022,976
19,563

8

7.6

6

7.3

20,721
16,46915,00010,0002011

Operating Income(Unit: 100 million yen)

20,0002010(Fiscal year)

10,926

11,38912,447

6.6

6.1

13,799

5.9

4.8

6.5

5.9

4

3.7
2

5,000
0

0

2010

Total Assets

2011

2012

2013

2014

Net Assets

2010(Fiscal year)

ROE

2011

ROA

2012

2013

2014

(Fiscal year)(Note) Assets: Total assets less interest-free liabilities

Glossary ＊ROA

07 CSR Report 2015

ROA (Return on Asset) indicates how eﬃciently a company uses its assets to make proﬁts. Sumitomo Electriccalculates ROA by dividing operating income by assets (total assets less interest-free liabilities).

Mid-term Management Plan “VISION 2017”(FY2013 to FY2017)❶ Growth strategy based on innovation
In order to create unique features and future potential by developing strategies that take into account the new needs ofsociety in the future, innovation" is positioned as a concept underlying throughout VISION 2017.

The Sumitomo Electric Group owns various technologies and products in the fields of automotive (mobility), energy andcommunications (ICT), as well as other supporting fields. While actively responding to new social needs, we will also apply theGroup's material and information technologies to life sciences (needs for the longevity, aging and care-based society),
resources (needs for the resource-saving society) and other business fields.

Business Outline❷ Direction we should aim forBasis for Management

Basic Concepts❸ Definition of business fields where we will make efforts toward fiscal 2017
Governance●

Current business fields

Fields in which our group has been involved thus far. In moving toward fiscal 2017, we have selected mobility,
energy and communications (ICT) as the three fields where we will particularly exploit the strengths of our group.
The materials and products supporting these fields are also included.
●

Integrated business fields

Fields for developing business in areas where there will be new social needs, such as the environment and infrastructure field,●

Group's CSR Activities

by combining and integrating the technologies and product lines in current business fields.

New business fields

Fields that our group will be challenging,such as the life sciences and resources fields.

Core
Category
Products & Services
Supply Chain

VISON 2017 (revised)(Targets for FY2017)
Sales

Operating Income

ROA

ROE

3,300 billion ¥ 200 billion 9% or more 8% or more

Initial VISION 2017

Environmental
Preservation(Targets for FY2017)
Sales

¥

Operating Income

Human Resources¥

ROA

3,000 billion ¥180 billion 9%■ We aim to increase the proportions of overseas sales and production to 60% or more.
■ We aim to target a new product sales ratio of 30%.
■ We aim to achieve total sales of the order of 150 billion yen in fiscal 2017 in integrated and new business fields.

CSR Report 2015

Social Contribution

Other indicators (no change from the originally published targets)08

Our History and BusinessStarting with copper wire production, the electric wire and cable business of Sumitomo Electric has expanded in the respective segments,
including the manufacturing of power cables and communication cables and then magnet wires, automotive wiring harnesses and electronic
wires for information equipment, in line with the development of society. In the meantime, we also began to diversify our business in earlyyears based on the technology to produce electric wires and cables. The production of cemented carbide tools and special steel wires
launched in 1931 and 1932 respectively was a firm step into the areas outside the electric wire segment. We have accelerated thediversification with the target of increasing the ratio of the non-electric wire business to 50% since the 1960s, and offeredinnovative products and technologies such as compound semiconductors, optical fibers, artificial diamonds andhigh-temperature superconductivity in sequence so as to support the changing times. The Sumitomo
Electric Group has thus continued to develop unique technologies and persistently
pursued new business opportunities, and is now conducting global business
operations in the following five major business segments:
automotive; electronics; environment & energy;
information & communications; and industrial materials.

History
1897

Sumitomo Copper Rolling Works was founded.

1939

Company name changed to the current name, Sumitomo Electric Industries, Ltd.

1900

Started production of coated wires.

1941

Opened the Itami Works.

1908

Started production of power cables.

1943

Started production of vibration-proof rubber and fuel tanks.

1909

Started trial production of telecommunication cables.

1946

Opened a branch oﬃce in Tokyo (now the Tokyo Head Oﬃce).

1911

Established Sumitomo Electric Wire & Cable Works(the foundation of the Company).
Manufactured and supplied the ﬁrst Japan-madeunderground high-voltage (11,000 V) cables.

1948

Started marketing sintered powder metal products.

1949

Entered into the business of construction of overhead transmission lines.

1957

Supplied the ﬁrst Japan-made television broadcasting antennas.

1916

Opened a new factory (now the Osaka Works)
Started production of enamel wires.

1961

Opened the Yokohama Works.
Delivered the wiring harnesses for four-wheel vehicles for the ﬁrst time in its history.

1920

Incorporated Sumitomo Electric Wire & Cable Works as a limited company(the establishment of the Company).

1962

1931

Started production of cemented carbide ( IGETALLOY ) tools.

Started production of IRRAXTM Tube electron beam irradiation tubes.
The Head Oﬃce was moved from Osaka's Konohana Ward to
the present address in Chuo Ward.

1932

Started production of special steel wires.

1963

Started production of disc brakes.

1964

Started production of electron beam irradiation wires.

1968

Entered into the business of traﬃc control systems.

1969

Established its ﬁrst overseas production facility.
Started development of ﬂexible printed circuits (FPCs).

09 CSR Report 2015

Responding to safety, amenity andenvironmental needs of future motorized societyWith a focus on the interface between the vehicle and driver, Sumitomo Electric oﬀers various products
to the global market. A representative example of these products is a wiring harness that transmits
electric power and information to various points in an automobile. Growing public demands for more
eco-friendly vehicles require the supply of sophisticated hybrid and electric vehicle parts based on awide variety of advanced technologies. Keeping in mind the next generation with harmony between
vehicles and people, Sumitomo Electric will continue developing a variety of new automotive products
in order to contribute to the creation of a comfortable automobile society.

Ratio of thebusiness unit
in the total sales

Ratio of thebusiness unit in thenumber of employees

75.1％
180,803(million yen)(persons)

Ratio of thebusiness unit
in the total sales

Ratio of thebusiness unit in thenumber of employees

sophisticated. To meet these requirements, Sumitomo Electric has been expanding its product

10.1％

11.1％

lineup by continuously developing new materials, wires and other parts. Sumitomo Electric's

292,005

26,718(million yen)(persons)

Ratio of thebusiness unit
in the total sales

Ratio of thebusiness unit in thenumber of employees

21.9％

5.4％

Business Outline

51.2％
1,488,214Electronics
Supporting advancement in the functions
and performance of electronics

leading-edge Technologies have been employed eﬀectively for advanced medical, automotive andaircraft equipment, as well as for widely used products such as smartphones and tablet PCs.

GovernanceIn the electronics ﬁeld, devices are required to be ever smaller, lighter, more functional, and more

Basis for Management

Automotive

Environment & Energy(persons)

Ratio of thebusiness unit
in the total sales

Ratio of thebusiness unit in thenumber of employees

5.9％

2.8％

Infocommunications
Supporting communications
Sumitomo Electric provides various solutions that make our society safer, more secure andmore comfortable. A wide array of these solutions include optical ﬁbers/cables and othertelecommunication-related products necessary for FTTH and other optical network
construction, ITS-related products and access-based network products. We will continue todevelop innovative technologies and products and supply them to customers, thereby
contributing to the construction and upgrade of broadband network infrastructures.

6,697(million yen)(persons)

Ratio of thebusiness unit
in the total sales

Ratio of thebusiness unit in thenumber of employees

10.9％

5.6％

Industrial Materials
Using a wide range of technologies forthe prosperity of industrial society

317,360

13,645(million yen)(persons)(Note) The sales ﬁgures include internal sales between segments, and the sum of the sales by segment accordingly diﬀers from the total sales.

Started production of compound semiconductors.

1971

Opened the Kanto Works.

Sumiden Hitachi Cable Ltd.
(wires and cables for buildings and industrial equipment) started operation.
Sumitomo Electric Hardmetal Corp.
(powder metal and diamond products) started operation.

2004

A.L.M.T. Corp. was made a wholly-owned subsidiary.

2006

The HTS cable used in a power transmission grid in the U.S. started supplying electricity.

2007

Sumitomo Wiring Systems, Ltd. was made a wholly-owned subsidiary.
Nissin Electric Co., Ltd. was made a consolidated subsidiary.

1974

Started production of optical ﬁber cables.

1975

Contracted to construct a power transmission line in Iran.

1976

Received an order for a large telecommunications network project in Nigeria.

1978

Delivered and put into operation the world's ﬁrst bi-directional ﬁber
optic CATV system Hi-OVIS.

1981

Delivered the ﬁber optic LAN system for the ﬁrst time in its history.

1982

Succeeded in producing the world's-largest-class synthetic monocrystal
diamonds (1.2 carats).

2008

Opened the Technical Training Center.
Sumiden Friend, Ltd. (Special subsidiary) started operation.

1996

Developed a technology for producing long-length oxide
high-temperature superconducting wires.

2009

Sumitomo Electric Device Innovations, Inc. was organized.

2010

Opened the WinD Lab, a new laboratory building.
SEI Optifrontier Co., Ltd. was organized.

2014

J-Power Systems Corporation was made a wholly-owned subsidiary.

1998

Developed and started marketing ecology wires and cables.

1999

Sumitomo Electric Fine Polymer, Inc. (ﬁne polymer products) started operation.

2001

J-Power Systems Corporation (high-voltage power cables) started operation.

2002

Sumitomo Electric Networks, Inc. (network equipment) started operation.
Sumitomo (SEI) Steel Wire, Corp. (special metal wires) started operation.
Sumitomo Electric Wintec, Inc. (magnet wires) started operation.

CSR Report 2015

Social Contribution

2003

Environmental
Preservation

1970

Human Resources

Taking advantage of its material development capabilities based on electric wire/cable drawing
technology, Sumitomo Electric has developed various products with unique features, including PC
steel wires, steel tire cords, and other special steel wires essential for civil structure construction.
The Company also supplies a wide variety of superior materials including sintered parts used in
automobiles and household appliances and synthetic diamond called the ultimate material. Various
products made from these sophisticated industrial materials support the bases of industries,
thereby contributing to the development of society.

Supply Chain

172,011

Products & Services

12,935(million yen)Core
Category

636,512Group's CSR Activities

Supporting a stable energy supply
Since its establishment, Sumitomo Electric has made eﬀorts to develop wire andcable technologies that are essential for ensuring a stable power supply. The
Company is now moving toward new businesses in the ﬁeld of renewable energy
and smart grids to supply environmentally friendly and energy-eﬃcient products to
the global market, thereby contributing to upgrading social infrastructure.

10Automotive

Under-ﬂoor pipe-shielded wiring harnesses for HEVs

Vibration -proof rubbers

Quick charging connector for EVs

Aluminum wiring harnesses, a lighter,stronger and more environmentally friendly product,
will change the future of automobiles.
3rd Group, 2nd Sales Department, Sales Division (Central Japan),

Shigeki Sawada Automotive Business Unit

Demand for cars is increasing on a global scale with economic growth in developing
countries. Improvement of fuel efficiency of cars and conservation of resources areuniversal challenges in the current world. While copper is the most common material of
wiring harnesses, which are used in cars for interconnection, we have developed newtechnology to manufacture wiring harnesses made of aluminum to provide equivalent
performance to conventional products while reducing the weight to one third. We are
now promoting mass production of aluminum wiring harnesses. The minable duration, or
the ratio of reserves to production, of aluminum is several times longer than that ofcopper, which means that this technology also contributes to saving scarce resources.
Sumitomo Electric has reinforced the capabilities to produce automotive aluminum wires
since 2014 to enhance the capacity to supply aluminum wiring harnesses on a global
scale.
I repeatedly make a proposal to designers in car manufacturers, but it takes many years
until the vehicles that incorporate such proposals hit the market. While I have been in
charge of sales for four years only, I hope to purchase a car developed with any of myproposals when such a model is released. Technology to use aluminum is continuously
developed. The day when all of the cars driven all over the world are equipped withaluminum wiring harnesses may come before long.

Social challenges●●

Response to global warming
Depletion of rare metals

Social expectations●●

Improvement of fuel eﬃciency of cars
Measures to address depletion of
resources

New products and technologies contributing
to the solution of the challenges●

Improvement of automobile fuel eﬃciency
through the reduction of vehicle weight⇨ Aluminum wiring harnesses

Aluminum wiring harnesses
A wiring harness is a wiring system to transmit electricity and signals in cars. As theweight of wiring harnesses used in a vehicle sometimes exceeds 20 kg due to anincrease in the functions of cars, the reduction of their size and weight is an urgent task
for the improvement of fuel eﬃciency. The Sumitomo Electric Group has developed newtechnologies for the electric wires and connectors and succeeded in mass production ofaluminum wiring harnesses. The harnesses have been adopted in Ractis, Vitz and othermodels of Toyota Motor Corporation. We will continue the technical development topromote business activities that consider the environment by saving resources andenergy and reducing CO2 emissions through the improvement of fuel eﬃciency of cars.

11 CSR Report 2015

Infocommunications
Basis for Management

Broadband network service devices

Business Outline

Multicore optical ﬁber cables

Optical data links

Governance

A product created by integrating ourtechnologies supports transmission of
information across the sea.
Takehiko Kawano

Specialty Fiber Group, Market Development & Engineering Department,
Optical Fiber & Cable Division, Infocommunications Business Unit

Group's CSR Activities

The explosive diffusion of smartphones and online video distribution has led to aneed for upgrading optical fibres to increase the capacity to transmit more
information at a time. While the ground-breaking digital coherent transmission
technology was developed in 2009 to dramatically increase the capacity,
long-distance inter-continental communication using the technology requires reduced
transmission loss from optical fibers.
Z-PLUS Fiber TM 130 ULL, which was released by Sumitomo Electric in April 2013, is aCore
Categorysubmarine optical fiber that meets this requirement with the lowest attenuation atpresent, and has been adopted in various projects around the world. Since a trouble in
optical fibers after sub-sea installation could be very expensive to address, highProducts & Services

reliability, as well as high performance, is required for submarine fibers. We are very
proud that the product, which is an outcome of our long-time research anddevelopment activities and production technologies, helps satisfy such customer
demand. Demand for submarine optical fibers will keep growing all over the world andwe aim to further improve the performance to meet the requirements of the market.

Supply Chain

Social challenges
Explosive increase in transmission
quantity for smartphones andonline video distribution●

Low attenuation of optical ﬁbers

New products and technologies contributing
to the solution of the challenges●

Human Resources●

Social expectations

Achievement of the lowest
attenuation in the world⇨ Z-PLUS Fiber TM 130 ULL

Environmental
Preservation

Z - PLUS Fiber TM 130 ULL
Z-PLUS Fiber T M 130 ULL is an optical ﬁber with ultra-low attenuation developed by
combining the technology for mass production of optical ﬁbers, which were developed by
Sumitomo Electric ahead of others, with a newly developed loss reduction technology. In
addition, the eﬀective core cross-section area, where light is transmitted, was increased

Social Contribution

t o achieve optimal transmission performance for large capacity digital coherent
communication technology, which is being diﬀused rapidly. Especially in a submarine opticalcable system, the product is expected to contribute to not only an increase of transmission
capacity and extension of the transmission distance but also the reduction of the overall
cost by reducing the number of the expensive optical ampliﬁcation repeaters.

CSR Report 201512Electronics

SUMITUBE TM

Flexible printed circuits (FPC)

SUMI-CARD TM

Porous materials to purify water are
being introduced into the ﬁelds of energy andlife sciences based on new ideas.
Atsushi Uno

Senior Assistant General Manager, Poreflon Engineering Department,
Functional Fluororesin Products Division, Sumitomo Electric Fine Polymer, Inc.

Sumitomo Electric Fine Polymer, Inc. engages in business activities related to functional
polymer products using such technologies as electron beam irradiation and fluororesin
coating. The product I introduce is Poreflon TM, which is a porous PTFE
(polytetraﬂuoroethylene resin) filter with high filterability as well as high resistance tochemicals and heat. While Poreflon TM has been used as a filter to remove impurities atsemiconductor plants, it can now be employed as a filter to purify dirty water thanks tothe successful reform of the product to replace the initial water-repellent property by ahydrophilic property. In addition, with improvements to have micro pores and amulti-layer structure, it is expected to be used as membranes for redox flow batteries inthe energy field and as medical materials taking advantage of its high biocompatibility inthe field of life sciences. We are now working to make use of it in the field of nursing careas the first step. Poreflon TM was derived from wire coverings, for which our company was
originally established. Having engaged in research on this product for about 20 years, I
am very proud that this material can contribute to solving various social issues. I will
never get tired of seeking the unmeasurable potential of this product.

New products and technologies contributing
to the solution of the challenges

Social challenges

Social expectations●

Access to clean water
Development of safe andclean energy● Further development of
medical technologies

●

●

●

●

●

Recycling of water
Progress in electricity storage
technologies● Development of
biocompatible materials

Durable, chemical resistant and heat resistant ﬁlters to purify dirty water
Development of high-eﬃciency battery through application toredox ﬂow battery● Use for surgery⇨ Poreﬂon TM

Poreflon TM
Poreﬂon TM is a porous material made of 100% PTFE (polytetraﬂuoroethylene resin) produced by
Sumitomo Electric. We can manufacture the product in a way to have diﬀerent pore sizes ranging
from 0.03 -10 μm (micron) in response to various customer needs. Poreﬂon TM is characterized byhigh heat and chemical resistance and high permeability, as well as high strength, which provides
it with a long service life. All of these superb features are derived from PTFE. Sumitomo Electricpatented its PTFE expanding technology in 1962, and has since supplied the product as a ﬁlter
mainly to obtain high-purity cleaning agents used in production processes at semiconductor andliquid crystal factories. We anticipate that the product is applied to puriﬁcation of dirty water,
medicine and the energy ﬁeld in the future in order to make use of its excellent performance.

13 CSR Report 2015

Environment & Energy
Basis for Management
Business Outline

High-temperature superconducting (HTS) cable

Copper wire rods

Magnet wires

GovernanceThe cross-linked polyethylene cable we developed forextra high voltage DC power transmission allows large capacity andlong distance DC power transmission with less transmission loss.
Shoshi Katakai

Executive Officer, J-Power Systems Corporation

Group's CSR Activities

For long distance power transmission over more than 50 km, direct current powertransmission is more favorable than alternating current power transmission, which iscommonly used in society at present, because the former involves less transmission loss.
However, a cross-linked polyethylene cable, which shows excellent insulation performance
when applied to AC transmission, had a problem concerning insufficient insulation
performance when used for high voltage DC transmission. Through continuous research, we
successfully developed a solid insulation DC cable using cross-linked polyethylene. This
technology was adopted in the ±250 kV grid transmission line connecting Hokkaido andCore
Category

Honshu, which commenced operation in 2012. Unlike conventionally used oil-impregnatedinsulation cables, this cable requires no hydraulic pressure and can be applied to long
distance, large capacity power transmission. For this development, we were awarded theProducts & Services

Prize for Science and Technology (Development category) of the Commendation for Scienceand Technology by the Minister of Education, Culture, Sports, Science and Technology forfiscal 2015. Overseas as well, it was decided to employ the cable in a key international
power transmission line in Europe (±400 kV grid cable between the UK and Belgium) in 2015.
These results were achieved thanks to a series of joint research with many university scholars
and power companies. While I have devoted myself to research in this field for more than 30

Supply Chain

years since I was a university student, I am proud that the cable we developed has been
adopted in large-scale projects that need long distance, large capacity power transmission
and contributes to energy saving and solution of global environmental issues.

Social expectations

Inter-regional and international
supply of power● Establishment of power gridwith less transmission loss●●

Construction of long distance, large
capacity DC power transmission lines● Economical and environmentallyfriendly DC power cable that is easy to
manage and maintainNew products and technologies contributing
to the solution of the challenges●

Development of solid insulation DC
cables⇨ High voltage DC powertransmission cable

Human Resources

Social challenges

Environmental
Preservation

High voltage DC power transmission cable
The extra-high voltage direct current power transmission cable developed by Sumitomo Electric is aninnovative solid insulation DC cable that shows unprecedentedly high performance. Speciﬁcally, a small
amount of special compounding ﬁller is distributed uniformly in the cross-linked polyethylene, which isused as an insulating material, to dramatically increase the volume resistivity and reduce space charge＊

Social Contribution

accumulated in the insulating material. These properties provide the cable with resistance to highvoltage direct voltage and allow it to be used at up to 90°
C, the tolerable operation temperature, and tomaintain high insulation performance even during polarity reversal＊. Using no insulating oil, this cable isalso environmentally friendly. We expect in the future that it will be applied to transmission of power
generated oﬀshore, the demand for which is growing, as well as power grid systems interconnecting
diﬀerent regions, to make contribution in the ﬁeld of the environment and energy.

Glossary ＊Space charge
Charge accumulated in insulating materials. Accumulation of alarge amount of charge causes large distortion of the electricﬁeld and inﬂuences the insulation performance of the cable.

＊Polarity reversal
Change between positive and negative voltages(polarity) applied to a cable depending on the operating
conditions of an interconnected DC power line.

CSR Report 201514

Industrial Materials

Cutting tools

Sintered parts

Prestressing steels

Our Prestressing steels shorten the construction period
and extend the life of the structures. They also help
conserve resources, receiving attention in the marketplace.
Katsuhito Oshima

Assistant Manager, System Engineering Group,
PC Technical Department, Sumitomo (SEI) Steel Wire Corp.

Prestressing steels are an industrial material mainly used for concrete bridges. Being used inconcrete, Prestressing steels prestress the concrete and give a bridge strength and a longservice life. In addition to the strongest prestressing strands in the world, Sumitomo (SEI)
Steel Wire Corp. has also developed and supplied corrosion-resistant durable epoxy-coatedprestressing strands and anchorage systems to fix the tensioning strands.
The recently developed ultra-high strength prestressing strands reinforce concrete
structures effectively and allow construction of light-weight and strong concrete bridges.
Using less material input, the steel strands contribute to the saving of labor and personnel
for construction, management and maintenance, shortening of the construction period andreduction of environmental impact, which has led to widespread use of the strands.
Epoxy-coated prestressing strands are resistant to corrosion and have a service life of morethan 100 years. They attract attention as materials for the renewal and rebuilding of aging
bridges and those that have been damaged by seawater or freezing, as well as for thereconstruction of the areas affected by the Great East Japan Earthquake.
I have engaged in manufacturing of prestressing steels for about nine years since I joined
the company, and am now in charge of development of the entrenching system. I am proudof the bridges that are on a map thanks to the projects in which I was involved. Looking
forward to driving on such bridges someday, I will continue to work hard.

Social challenges

Social expectations

Rebuilding of aging
structures● Eﬀective use of resources● Shortage of labor inconstruction sites●●

Extension of the life of structures
Construction of bridges inconsideration of resource saving● Shortening of the construction period
and saving of labor and personnel●

New products and technologies contributing
to the solution of the challenges

Achievement of resource saving and consideration of theenvironment by using ultra-high strength prestressing strands● Extension of the life of bridges by using epoxy-coated prestressing strands●⇨ Ultra-high strength prestressing strands(designed to have high durability)

Ultra-high strength prestressing strands (designed to have high durability)
The ultra-high strength prestressing strand developed by our company are the toughest in theworld, being about 20% stronger than the prestressing strands speciﬁed in the current JIS
standard G3536. Due to the optimization of the chemical ingredients of the raw materials and the
production conditions, the product can exhibit higher tension (load) with the same level of stretch
performance. Since its ﬁrst adoption for AKIBA̲BRIDGE in 2005, the robust prestressing strand
has attracted attention as an environmentally friendly material in recent years, and is used in
highway bridges and many other structures. There are two types of ultra-high strengthprestressing strands, namely an epoxy-coated type and a pre-grouted type＊ (shown at right in thephoto), and they have high corrosion resistance and workability. We expect that the productcontributes to a wide range of infrastructure development projects in Japan and other countries.

Glossary ＊Pre-grouted prestressing strands

15 CSR Report 2015

Corrosion-resistant prestressing strands that can eliminate the need for grouting (application of cement milk in the gaps between prestressing strands
and the sheath) and the arrangement of the sheath on the construction site, thanks to the seamless polyethylene sheath ﬁlled with factory-cured resin.

2014 Highlights

Major events during ﬁscal 2014 are listed below.

4

10

5

6

Received a Minister's Prize from the Ministry of Economy,
Trade and Industry (METI) in the FY2014 Reduce, Reuse,
and Recycle Promotion Merit Awards Program11

Launched mass production of base material for
optical fiber in Tianjin, China

12

Ballast water treatment system ECOMARINE TM UV
received United States Coast Guard AMS＊ approval

Governance2 0 15
1

Received Thomson Reuters Top 100 Global
Innovators Award as in 2013 (for two straight years)

Group's CSR Activities

Held a fair of products from the Tohoku region
to support the region's reconstruction from theGreat East Japan Earthquake in our Tokyo Head
Office as well as other sites

Business Outline

Ballast water treatment system ECOMARINE TM UV
received a pre-installation test certificate from the
Ministry of Land, Infrastructure, Transport andTourism

Basis for Management

2 014

Core
Category

Started a demonstration test to cultivate
vegetables in collaboration with Chiba University

8

Established a company for manufacturing andselling sintered products in Mexico
Sumitomo Electric's oil filled cable was listed asa future Engineering Heritage material of
the National Museum of Nature and Science

Human Resources9

Supply Chain

7

Received the Excellence Award for environmental
reporting at the 18th Environmental
Communication Awards

Products & Services

2

Supported the 70th Lake Biwa Mainichi Marathon
as a special sponsor

Environmental
Preservation

3

Social Contribution

Glossary ＊Alternative Management System (AMS)
When a ballast water treatment system is type-approved by International Maritime Organization (IMO) and then accepted by
USCG as AMS, this system is given a maximum of ﬁve years as a grace period until it obtains a type approval from the USCG.

CSR Report 201516

Global Business Expansion

EUROPE

58

ASIA

158

JAPAN

112

AFRICA

11

OCEANIA

3

The Sumitomo Electric Group is developing business activities on a global scale, with 389 consolidated companies and over
240,000 employees around the world.
While providing superior products and services, we respect the cultures and customs of the countries and regions in which
we operate. As a corporate entity we conduct business in harmony with society, so as to contribute to the sustainable
development of the economy and society.

JAPAN

EUROPE
UK

7

Japan

AMERICA112

USA

Net Sales by Region (Consolidated)

27

Canada2

Europe and others

Mexico9

3,460Brazil7

Argentina

1

Germany

13

Poland5

ASIA

Slovakia

2

Singapore

4

Hungary

3

Thailand

21

Italy

3

Malaysia

5

Paraguay

1

Netherlands

3

Indonesia

12

Romania2

Philippines

11

Turkey4Vietnam9

Bulgaria

1

China

Ukraine1

Hong Kong

Belgium

1

FranceSerbia

AFRICA

Total forFiscal 2014

28,228South Africa

270

Morocco4

6Tunisia

3

Taiwan

5

Egypt

2

6

South Korea

6

1

India

7

OCEANIA

Russia4

Cambodia

1

Australia

Spain

1

Saudi Arabia

1

Czech Republic

1

17 CSR Report 2015

Asia 8,061

Japan 11,760

3(100 million yen)

America 4,947

History of the business development on a global scale
Sumitomo Electric started to export electric wires, which underlie theWorks, which was founded in 1911. In the postwar period, we expanded
our business by exporting full turnkey projects, which covered exports ofelectric wire products and all services from design to construction. This
leads to the establishment of foundations for the social and economic
development of developing countries and regions all over the world.
With respect to products in the business segments as well, we havebases in the trend of customer demand for overseas operation and so on.

AMERICA

Through these activities, we have provided technical guidance and have47

established an integrated system of production and sales outside Japan.

Full turnkey projects

Business Outline

promoted localization of the business by setting up a number of production

Basis for Management

industry, during the era of its forerunner, Sumitomo Electric Wire & Cable

Since our first project in Venezuela in 1963, we have undertaken
power transmission lines, which serve as anarterythat conveys

electricity throughout society, and to build communication networks,
which serve as a nerve system that conveys information.

Governanceconstruction works in Asia, Middle East, Africa and South America to lay

In particular, the order we received to construct an urban telephone
network in Nigeria in 1974 was at that time an unprecedentedly large
communication network construction project, even by worldwide
standards, to be placed with a single company. A total of 300 Japanese
years until its completion in 1988.
In the two power transmission line construction projects for which we

Companies Consolidated

389

received orders in Iran in 1975 and 1977, we faced not only harshgeographical and weather conditions in the construction area but also
unstable political circumstances such as revolution and war. Still, wein totalmanaged to connect major industrial bases of the country and eventuallycomplete the projects in 1987.

Core
Category

Breakdown ofcompanies consolidated(as of March 31, 2015)●●

Group's CSR Activities

staff and 2,000 locals worked together on the project for 11 and a half

Consolidated subsidiaries (354)
Equity-method aﬃliates (35)in Thailand in 1969, we have promoted establishment of overseas bases inconsideration of market needs and characteristics for each businesssegment. In the parts of the world in which we have established our bases,

Supply Chain

Beginning with the establishment of our first overseas manufacturing baseProducts & Services

Global development by business segment

we are committed to job creation and human resource development while
have a total of 277 affiliates located in approximately 40 countries withmore than 200,000 employees.
Number of employees in Japan and overseas andratio of overseas employees by year

79.8

80.7

82.0

250,000

182,773

194,734

206,32383.3
225,484

240,798

90
80
70
60

30,00036,95437,4992010

2011

169,175

187,769

201,906

20,33845.6

48.6

25,68820,59328,22860
50
40

21,59914,17016,468

8,904

9,399

10,488

11,434

11,194

11,111

11,518

11,760

2010

2011

2012

2013

2014

15,00010,0005,000

Overseas

43.8

58.3

Domestic

37,14837,71538,892

2012

2013

2014

0
(Fiscal year)

Ratio of Overseas※Sumitomo Electric and consolidated subsidiaries

Overseas

Domestic(Fiscal year)

Ratio of Overseas

Social Contribution

157,235

50,0000

55.2

20,000145,819

Ratio of overseas sales (%)(100 million yen)

25,000150,000
100,000

83.8

Environmental
Preservation

Ratio of overseas employees (%)(Persons)

200,000

Sales in Japan and overseas andratio of overseas sales by year

Human Resources

aiming to stabilize the local operation of the manufacturing bases. We now※Sumitomo Electric and consolidated subsidiaries

CSR Report 201518

MO R O C C O

CSR EYE

We Create
17,988 Jobs＊

＊ As of March 31, 2015

Located in the northwestern corner of the African continent,
the Kingdom of Morocco maintains friendly relationships with European countries andsustains smooth economic development and political stability under the reign of
His Majesty the King Mohammed VI. Blessed with a wealth of human resources,
the country serves as a main base for the production of automotive wiring harnesses in Africa.
Hiring more employees than any other private companies in Morocco,
the Sumitomo Electric Group contributes to the local community through job creation.

19 CSR Report 2015

SEWS-Maroc S.A.R.L. (SEWS-M) as a subsidiary oflaunched by buying the wiring harness business andSumitomo Electric Wiring Systems (Europe) Ltd. (SEWS-E)

factories of an Italian firm in 2001 to establish

in the UK. Thus, we have continuously expanded our

SEWS-CABIND S.P.A (SEWS-CI) as well as SEWS-CABIND

wiring harness business in Morocco to deliver the

MAROC S.A.S (SEWS-CM) as its subsidiary. In 2006, we

products to Europe. We currently operate eight plants,

acquired a German company to set up Sumitomo Electricmost of which are located in major cities of the country,

Bordnetze GmbH (SEBN) and its subsidiary SE Bordnetzeand hire approximately 18,000 people.

SEWS-CABIND GroupTo t a l

SEWS-Europe GroupTo t a lpersons

SEBN Group

8,974

To t a lpersons

4,059
persons

Tangier Plant 1

1,713
13 persons

3,553
3,
553 persons

2,544
2,
544 persons

SEWS - CABIND MAROCSEWS MFZ

SEBN- MAAïn Sebaâ

KenitraTangier Plant 2

1,258,258 persons

2,135,135 persons

1,515,515 persons

SEWS - CABIND MAROCSEWS - MAROC

Berrechid

Kenitra1,984
984 persons

3,286
3,
286 persons

Supply Chain

SEBN- MAAïn Aouda

Products & Services

SEWS - MAROCAïn Harrouda

Core
Category

SEWS - CABIND MAROC

Group's CSR Activities

4,955

GovernanceMorocco S.A.R.L. (SEBN-MA), and in 2007, we founded

Portugal

Environmental
Preservation

GermanyE u rop e

France
Spain

Italy

KenitraRabat

Africa

Libya

Egypt

Social Contribution

Casablanca

MOR
RO
O CC
CCO
Algeria

Aïn Aouda

TurkeyTunisia

Human Resources

TangierU.K.

Business Outline

Our Group's business development in Morocco was

Basis for Management

Morocco is our production base to deliver wiring harnesses
to Europe. Creating the largest number of jobs among privatecompanies in the country, the Sumitomo Electric Group iscontributing to the local community.

Aïn Harrouda
Aïn SebaâBerrechid

MO R O C C O
CSR Report 201520

Eight plants in Morocco provide secure employment
as well as excellent welfare beneﬁts.
Received Wissam-Al-Alaoui (medal) forrecognition of contribution tonational development

Launched a wide range ofGroup-wide initiatives beyond
the borders between plants

Only approximately 14 km (at the shortest distance) away

To ensure that we can recruit the best human resources infrom Spain on the other side of the Mediterranean Sea,

the Moroccan car parts industry, which has been growing

Morocco has close relationships with Europe in both

continuously in recent years, it is essential to improve

geographical and economic terms. Three Europe-based

welfare benefits and create a corporate climate thatwiring harness manufacturing companies of the Sumitomo

motivates employees. Personnel sections therefore play key

Electric Group currently operate eight plants in total inroles in these issues.

Morocco, which are making contributions to the country by

The Sumitomo Electric Group has promoted various

creating many jobs.

cross-organizational initiatives for the plants of the three

The wiring harness industry is known for a high percentage

Group companies operating in Morocco since the beginningof female employees. In Morocco in general, theof the 2010s. They are original initiatives tailored to theemployment rate of women is as low as less than 40% of

specific circumstances of Morocco, widely ranging fromthe employment rate of men. Our Group currently employs

measures related to the working environment including joint

14,398 women and 3,590 men in total in the country andagreements with bus companies, cafeterias and cleaning

provides them with stable jobs and rich welfare benefits.

companies, to administrational measures including sharing of

Such commitment has been recognized as contribution to

a common IT system and administrative procedure tools, as

national development, and Masayoshi Matsumoto, ourwell as measures based on our long-term perspective such

President, had the honor to receive Wissam-Al-Alaoui

as development of a training system and submission of(medal) from the country's beloved king, His Majesty the

proposals on educational reform to the government.

King Mohammed VI, in 2011. Except for JapaneseMeetings attended by all HR staff of the companies haveambassadors to Morocco, he is the first Japanese to receive

been held for 10 times over the two years from 2013. Thus,

the medal.

the three Group companies operating in Morocco havebeen steadily generating greater synergy.

Fez, a world heritage city

21 CSR Report 2015

SEWS-CABIND MAROC
Basis for Management

Aïn Harrouda

Business Outline

The extensive career development system realizes
long-term employment of excellent staﬀ.

GovernanceAn especiall
especially la
larg
rge nunumbmber of eexperienc
enced em
employployeeees worork iin Aïn Harrou
Har ouda Plant,
which is located about 3
30 km away ffrom
om the urban
u ban center of Casablanca,
among our aﬃliates in Morocco.

Established as a subsidiary of SEWS-CI in 2001, SEWS-CM moved from the former plant in
Casablanca to the Aïn Harrouda Plant in Mohammedia, a neighboring city, in 2013. Accordingly,
Sumitomo Electric Group in Morocco. The products are delivered to FCA＊, which is our main
customer. We are proud that His Majesty the King Mohammed VI has commended President
Matsumoto for the Group's contribution to national development through job creation. Morocco

Mokhtar IDELMOU

does not have sufficient personnel assessment systems, and it is therefore common to change

CMO(Chief Manufacturing Officer)

jobs for career development. However, our plant is endowed with experienced, long-serving

Group's CSR Activities

the employees working in this plant have the longest years of service among all plants of theemployees with a strong sense of belonging. I believe that this is the result of the outstanding
human resource development programs and the internal careerCore
Category

development system offered by the Sumitomo Electric Group.
The plant is equipped with a concentrator photovoltaic (CPV) systemdeveloped by Sumitomo Electric and a demonstration test is underway for the

Products & Services

system. It is also scheduled in 2015 that Sumitomo Electric, JICA＊ and MASEN＊
will jointly conduct a demonstration test for the latest CPV model featuring
higher power generation efficiency in Ouarzazate in southern Morocco.

Our plant has in place various personnel systems to ensure that we remain an attractive
company for our employees. All employees are covered by excellent insurance, and a grant

Supply Chain

We provide all employees withgenerous support such as insurance and grant programs.

system based on funds reserved by the company and all employees has been established to aid
in Morocco have no labor union, our plant has two unions and holds a meeting with them every
month to discuss the improvement of the working

Abdellah CHENGUITIFAKHOURI

environment. We sometimes supply reasonable bonuses

General Manager,
Human Resources Department

we have a welfare program that allows around 10

for the positions depending on performance. In addition,

Environmental
Preservation

employees to make a pilgrimage to Mecca, the Muslim
holy land, every year.

If you work hard, your eﬀorts will be recognized.
I want to tell my experience to younger people.

Abbreviation of Fiat Chrysler Automobiles. FCA markets car
brands of FIAT AUTO, Chrysler, Alfa Romeo, Iveco and CNH.

Social Contribution

Since I joined the company in April 1998, I have attended various training courses and learned theways of doing work, management and communication with colleagues. Now, as a team leader, I am
working to motivate employees and feel that appropriate communication methods are crucial for it.
More women are working in Morocco and not only for earning money. I hope that young women
who are joining the company have goals, learn each job properly and aim to develop their career.

Glossary ＊FCA

Human Resources

employees who are especially in difficult economic circumstances. While most of the companies

Khadija TAKOURT
Manufacturing (assembly)
Team Leader＊JICA＊MASEN

Abbreviation of Japan International
Cooperation Agency.

Abbreviation of the Moroccan
Agency for Solar Energy.

CSR Report 2015

22

SEWS- MAROCAïn AoudaIn Aïn Aouda plant, which is located near Rabat, the capital of Morocco,
about 90% of the employees are women.
We conduct thorough training and quality control to
supply products that meet the needs of customers in Europe.
Aïn Aouda plant was established near Rabat, the capital of Morocco, in 2009. Our main
customers are European and Japanese car manufacturers including Renault, PSA Peugeot
Citroën and UK Nissan. Our plant places emphasis on product quality, welfare benefits andhuman resource development. In the past, I was involved in the launch of factories of theSumitomo Wiring Systems Group in Poland, Slovakia and Romania. As in the plants in Slovakia
and Romania, the plants in Morocco also adopt the

Tyrone GRIFFITHS

plant management approach of SWS actively.

Plant Manager

Moroccan employees are trying to absorb various
cultures and customs to improve their life. In thatsense, I think they are open to the Japanese work
style. All of our employees are learning theprinciple of safety first and thethree types ofmanagement ＊ properly through training.

Thanks to support programs tailored to the lifestyle of female workers,
100% of the employees return to work after childbirth.
The ratio of female employees is especially high in this plant. Staff stability leads to a stableworkplace as well as stable production activities. Thus, I try to listen to the opinions of female
employees. Along with statutory maternity leave for three months, we approve additional leave
if they apply for it. In Morocco, women should avoid using public transportation at night inparticular. It is therefore crucial to provide transportation means for them, and the plant
operates bus services for transportation to andMohammed AZIZI

from the neighborhoods of their houses. Female

Human Resources Manager

workers can have one hour of breast-feeding timeeach day with pay for one year after childbirth.
Thanks to these initiatives, nearly 100% of thefemale employees who have taken maternity leavein our plant return to work after the leave.

I have learned that the principle of safety ﬁrst is also necessary for protecting myself.
I joined the company in November 2011. It is the first company I worked for after graduating fromhigh school. I was raised in a town near Aïn Aouda, and had wanted to work for this company
because it had a very good reputation. I thank the company for the welfare program to provide
transportation means. Training in the company is also very helpful. I think the principle of safety firstis also necessary for protecting myself. As a Moroccan, I am proud that I can work for a company of
the Sumitomo Electric Group.

Fatima ESSAADAOUIManufacturing (assembly)

Glossary ＊Three types of management

23 CSR Report 2015

Management of compliance with standard operating procedures,
anomaly management and change point management

SEBN - MA
Basis for Management

TangierBusiness Outline
Governance

Located in a port town on the northern tip of Morocco,
Tangier Plant is positioned in major export city to Europe.
The plant is located in a free trade zone thatplays a crucial role in export of products.
(Peter GULLICH , CEO for the North African Region, SEBN )SEBN has plants in Tunisia and Tangier,

Morocco, and the Tangier Plant is located in a free trade zone near the Tangier-Med Port. Its main
various industries are concentrated in the free trade zone, there is a competition between theplants for excellent employees. The plant manager serves as the chair of the free trade zone

Peter GULLICH
CEO for the North African
Region, SEBN (left)

Abdelkrim BAHJI
Plant Manager (right)

committee, and the plant also has partnership with local universities, in order to develop
community-based business and secure human resources.

We are working to strengthen our brand to
attract personnel in a very competitive environment.

Supply Chain

I can assert that employees in our plant have a

Products & Services

We are committed to various measures to develop motivated employees.

Core
Category(Abdelkrim BAHJI , Plant Manager ) We have partnership with local engineering schools anduniversities and actively receive the students and interns to disseminate the corporate culture andeducation of the Sumitomo Electric Group in Morocco. I hope that further development andenhanced presence of the Sumitomo Electric Group will lead to support of the policy that facilitates
economic development in Morocco. I would also be happy if our activities also result in attraction of
investment from foreign countries to contribute to further growth of the Moroccan industry.

Group's CSR Activities

customers are German car manufacturers including Volkswagen and Audi. As production plants ofstrong sense of belonging. We hold a wide rangeof events to create a family-like and cooperative
corporate climate. As employees spend more timein the plant than in their homes, I believe that it is
our mission to make the plant an enjoyable andemployees are essential for the wiring harness

General Manager,
Human Resources Department

business. The Sumitomo Electric Group has a very powerful influence in Morocco. The good
examples established here will surely have good impact on other companies as well. I would
like to work to enhance the systems through jobs and promote the development of outstanding

Human Resources

motivating place. This is because motivatedZhor CHAHIR

human resources to help stabilize employment in Morocco.
Environmental
Preservation

I learned much through various training sessions after joining the company.
Social Contribution

I joined SEBN-MA in 2009. Even before that, I had already heard that it is a good company with awell-developed insurance system as well as employees who work with pride. Right after joining it, I
received training on cables, which made me learn much about my life because I had never thought
about efficiency in any duties or set a goal to evaluate my performance. I am interested in IT andhope to hold an IT-related post in the future. My dream is to realize both economic stability and myinterest in IT in this company.

Ounzi ZAKARIA
Manufacturing (assembly)

CSR Report 201524

Corporate Governance
Basic Structure of Corporate Governance
Sumitomo Electric has employed the system with the Board of
Corporate Auditors in consideration of the contribution of
corporate auditors and the Board of Corporate Auditors toensuring sound business management. The Board of Directors,
the business execution system, corporate auditors and the Boardof Corporate Auditors are committed to fulfillment of theirrespective duties in order to achieve sustainable growth andmedium- and long-term increases in the corporate value basedon the basic value standards.
In addition, an outside director is appointed to adopt an external
perspective with the aims of further strengthening the supervising
functions of the Board of Directors and enhancing thetransparency and objectiveness of the business management.
We also select three outside corporate auditors with various
specialized knowledge and multifaceted views to reinforce themonitoring system for the purpose of ensuring lawful and proper
management.

Business Execution System
In our business execution, the Board of Directors deliberates only
important issues, such as the medium-term business plan, annual
plans based on it and follow-ups of the plans, so that it canappropriately perform the function to decide basic mattersconcerning the direction of the Company, as well as thesupervising function.
Sumitomo Electric holds monthly meetings of the Board of
Directors, which comprises 14 directors, as well as extraordinary
meetings when necessary. In the meetings, which are chaired by
the President because the position of the chairman is vacant, theBoard of Directors deliberates and takes decisions on thematters mentioned above, makes decisions on the basic policy of
the internal control system and supervises the development andoperation of the system. Directors (13 persons excluding theoutside director) received 821 million yen in total for fiscal 2014,
and all of them are male.
To clarify authority and responsibility in the business execution
system and establish a flexible system that can respond tochanges in the business environment, Sumitomo Electric adopted
the Executive Officer System and the Business Unit System. We
have transferred authority to execute business operations toBusiness Units while clarifying their responsibility. In addition, toestablish an internal check function, our corporate regulations
specify the scope of authority of each of the Business Units
including the Corporate Staff Group, responsible persons for the
execution and appropriate business procedures.

authorization documents and visit major establishments to
conduct audits. Corporate auditors also receive reports fromother auditors regarding their audit status, and exchange
information with the accounting auditor when required.

Outside Directors &Outside Corporate Auditors
An independent outside director is appointed in the Board of
Directors to ensure multifaceted and sufficient discussions in themeetings, in which independent outside corporate auditors arealso provided with opportunities to present their opinions
actively. As to supervising function of the Board of Directors,
while we respect opinions of the independent outside director
and other independent outside officers to ensure theindependence and objectiveness, we plan to set up an advisorycommittee chaired by the independent outside director andmade up of a majority of independent outside officers toenhance the effectiveness in the future. This committee will give
advice on the appointment of executives and directors and theircompensations. In addition, while the Board of Directors
currently has one independent outside director, we will have asystem with two or more independent outside directors after theOrdinary General Meeting of Shareholders in 2016, and enhance
the support system as well as the system to cooperate withcorporate auditors including independent outside corporate
auditors, accounting auditors and Internal Auditing Department.

System to Ensure Appropriateness ofFinancial Reporting
We have established the Financial Reporting Internal Control
Committee, chaired by the President, and an organization topromote control in the Corporate Staff Group. Under their policy,
guidance and support, we promote development and proper
operation of the internal control system in each division andaffiliate in accordance with the Financial Instruments andExchange Act, as well as the assessment, audit criteria andenforcement criteria specified by the Financial Services Agency.
Thus, we are committed to further improving the systems toensure appropriateness of financial reporting.

Sumitomo Electric Group's corporate governance structure

General Meeting of Shareholders
Appointments / dismissals

Board ofDirectors

Auditing and Supervision Systems

25 CSR Report 2015

Chairman of
the Board of
Directors

Management
Conference

President

Accounting
Audit

Board ofCorporate
Auditors
Corporate
Auditors

Accounting
Auditors

Cooperate

Co

op

er

Sales UnitsAﬃliates in Japanand Overseas

R&D Unit

Aﬃliates in Japanand Overseas

Production UnitsAﬃliates in Japanand Overseas

Cross-Sectional
Risk Management
Activity etc.

Risk Management Committee
Compliance Committee
Corporate
Staﬀ Group

Corporate Environment Committee
Information Management Committee
CSR Committee

at

Audit

e

Cooperate

Sumitomo Electric receives three types of audits, namely
corporate auditor audits, internal audits and accounting audits,
to ensure the legality and appropriateness of its business
management. As to the corporate auditors and the Board of
Corporate Auditors, the majority of the corporate auditors are
independent outside corporate auditors with various specialized
knowledge and multifaceted views. These auditors, along with
two full-time corporate auditors and dedicated staff to corporate
auditors (Office of Corporate Auditors), are in charge ofmonitoring in cooperation with Internal Auditing Department andAccounting Auditors to ensure lawful and proper corporate
management.
The Board of Corporate Auditors establishes audit plans andpolicies, in accordance with which each corporate auditor fulfills
his role, as assigned by the Board of Corporate Auditors.
Specifically, corporate auditors attend important meetings
including those of the Board of Directors, conduct hearings withthe directors, Internal Auditing Department and other relevant
divisions regarding their performance, inspect important

Audit

Internal
Auditing
Department

Basis for Management

C S R VO I C E

As an outside director, I realize thatthe business is developed in a steadyBusiness Outline

and highly motivated manner
Kazuo Hiramatsu, Outside Director
Professor at the School of Business Administration, Kwansei Gakuin University
President of the International Association for Accounting Education and Research (2013 to 2014)
President of Kwansei Gakuin University (2002 to 2008)

supply chain, I think that it is difficult to simply ask

and other countries and participate in executive training

suppliers to be at the level that Sumitomo Electric isfrom time to time, I recognize that my basic duty is toseeking to reach. As many suppliers are located in otherattend the monthly meetings of the Board of Directors

countries, conflicts could occur without response in

and present my opinions with an emphasis on theconsideration of their cultural and economic

perspective of shareholders. In the meetings, importantbackgrounds.

Group's CSR Activities

In the commitment to CSR procurement involving thecurrently in the eighth year. While I visit plants in Japan

Governance

I was appointed as an outside director in 2008, and am

subjects such as business results and various corporate
activities to be performed are reported, which is

Support in the sports area as part of social contribution

followed by an open-minded discussion under theactivities is beneficial for the local communities and also

initiative of President Matsumoto.

helps improve the corporate image. It is a good
opportunity to show the presence of the company and a

Cutting-edge technologies that contribute to our future

good way of making contribution that pleases everyone.

are also reported in the Board of Directors meetings.
more important in recent years. I consider myself as one

using such technologiesof the pioneers who identified the importance ofsomeday. I feel happy that I

non-financial information in accounting, which is my area

always have an opportunityof expertise. Like this CSR report, improvement has been

to hear enthusiastic stories

seen in efforts to disclose a considerably broad range offrom staff who are working

information in recent years. Still, disclosure offor development with a spirit

non-financial information has been insufficient inof challenge in the meetings.

Japanese companies although such information is

Products & Services

Non-financial information has been becoming more andforward to seeing productsCore
Category

Many of them are closely related to our life, and I lookattention is integrated reporting, which is used toefforts to eliminate occupational accidents including theunderstand a company in a systematic manner andbackground of the accidents and measures to prevent

identify the strategic characteristics and growthrecurrence of them. Furthermore, measures to reduce

potential. The International Association for Accounting

CO 2 emissions and the results of them are reported.

Education and Research, in which I served as the

Even with time limitations, unfavorable subjects for thepresident, also considers it as a significant subject. I

management are discussed as well, which demonstrates

hope that Sumitomo Electric also makes efforts tothe openness of the meetings.

prepare a report with view to

Human Resources

financial report. A concept that currently attracts

reported in each of the meetings, along with sincere

Supply Chain

essential for understanding the background of the
In addition, records on occupational accidents areintegrated reporting tobecome an even betterfor the CSR activities. Even in the eyes of me, who work

company for stakeholders.

Environmental
Preservation

I also realize steady progress in other priority areas set
for a university, the human resource development andother programs are excellent for a private company. On
the other hand, with respect to diversity, the membersof the Board of Directors and the Board of Corporate
Auditors are all male although I know that less womenSocial Contribution

work in this business area. It is desirable to make aconscious effort to develop female managers first.

CSR Report 2015

26

Risk Management
Basic Approach

Risk Management Activities

The Sumitomo Electric Group identifies, analyzes and assesses
business risks, which include the factors that prevent theimplementation of its business activities or achievement ofmanagement goals and strategies, as well as the factors that
potentially have adverse impact, and then seeks to reduce andminimize them at a reasonable cost and with reasonable
efforts.
With respect to cross-sectional risks common to all divisions
and affiliates in the Group, the relevant corporate staff
divisions, as well as company-wide committees organized by
officers in charge, identify, analyze and assess the risks
according to their duties, and then take measures to mitigate
them.
The divisions and sales and R&D groups individually identify,
analyze and assess the risks associated with their business
operations, and then take measures to reduce them.

Risk management activities of the Sumitomo Electric Group arebased on taking inventory of risks that is conducted by each
unit and each affiliate every year.
Annual results of the risk inventory are shared with executives
and the corporate staff divisions. With mutual cooperation
between them, group-wide risk management activities arepromoted steadily.

Risk Inventory●

The signiﬁcance of each of the major risk items isdetermined by scoring its severity, probability ofoccurrence and other factors.

●

For the signiﬁcant risks, countermeasures are
considered and taken.

Risk Categories

Basic Policy of Risk Management

Major category Middle category

Risk management is performed based on the significance ofthe risks determined in consideration of the following issues:●

Impact on business performance, maintenance of quality
and safety●

Social responsibility to ensure stable supply●

Maintenance of favorable relations with stakeholders
such as customers, suppliers, shareholders/investors,
local communities and employees

Non-ﬁnancial
risk

Externallygenerated
Financial
risk
risk

Minor category● Disaster risk, crime risk
● Political and country risks etc.
● Credit risk
● Market risk; e.g. interest rate, exchange

rate and material prices● Liquidity risk etc.

●

Continuous compliance with laws and corporate ethics●

Statements in the Sumitomo Spirit, the Sumitomo ElectricGroup Corporate Principles and the Sumitomo ElectricGroup Charter of Corporate Behavior

Strategic risk

● Competitive strategy risk etc.
● Product quality and safety risks● Occupational hazards,

facility accident and safety risks● Environmental risk

Internallygenerated Operational
risk
risk

● Compliance risk
● Violation risk
● Labor, human rights andpersonal information risks● Financial information credibility andasset protection risks● Information and communication system risks

Risk Management System● Intellectual property rights risk
● Reputational risk etc.

The Sumitomo Electric Group holds a meeting of the Risk
Management Committee, which controls overall risk
management activities, in conjunction with a meeting of theManagement Conference. The Risk Management Steering
Committee is in charge of formulation of risk management
policies, establishment of task forces at the time of an
emergency, collection of information, and planning andimplementation of risk management education. The Risk
Management Office serves as the organizer for thesecommittees.
In addition, a risk manager is appointed in each of the divisions
and affiliates to periodically raise awareness of employees andpromote risk management activities as well as improvement ofemergency management and preparedness.

《 Strengthening of Risk Management 》
We examine and take specific enhanced measures to meet thefollowing targets, in addition to the conventional initiatives ofrisk management:① Enhanced coordination between business activities andrisk management② Arrangement of monitoring functions③ Enhanced response to global risks④ Higher awareness of risk management⑤ Stronger risk management baseWe will make continuous efforts to develop a more effective
mechanism to respond to expansion of our business fields andchanges in the external environment.

Risk Management System
Board of Directors

Company-wide
Committees

Management Conference

Compliance
Committee

Risk Management Committee
Risk Management Steering Committee

Public Relations
Committee

Risk Management Oﬃce

Environment
Committee

Corporate Staﬀ Group
Risk manager
Legal, Public Relations, Accounting, Information Systems,
Procurement, Logistics, Safety & Environment,
Plant & Production Systems Engineering

Business Units, Sales Units,
Research & Development Unit

Divisions
Risk manager

27 CSR Report 2015

CSR Committee

Risk manager

Aﬃliates
Risk manager

Initiatives for Business Continuity《 Revision of Business Continuity Plans (BCPs) 》
Sumitomo Electric has developed Business Continuity Plans(BCPs) since fiscal 2007 to ensure that our importantbusinesses can be continued even in the event of an
emergency, such as an earthquake and pandemic of influenza,
and that we can swiftly resume operations when ouroperations are interrupted, and promoted business continuity
management (BCM) for continuous improvement of the BCPs.
We also review the BCPs periodically, verify the effectiveness ofthe emergency response plan and take inventory of supply
chain risks every fiscal year.
In line with the growing importance of overseas bases, westarted to promote development of BCPs in each of theoverseas subsidiaries as well in fiscal 2014.

Security Trade Control

Record of Various Training Sessions in Fiscal 2014

As a corporate citizen, we are committed to enhancing disaster
preparedness abilities of the local communities, through theconclusion of disaster preparedness agreements with local
governments and other means, in the areas where our bases
are located.

Tasks on how to classify
goods and technologies

Export control
sections

12

199

Export control practiceGeneralemployees

19524Outline of export control
and internal rules

Domestic
aﬃliates

2

53

Outline of export control

215

Outline of export control
and issues to be noted inforeign countries

Overseasaﬃliates

19Intellectual Property Protection

CSR Report 2015

Social Contribution

Sumitomo Electric seeks protection of its own technology byproper management of technical know-how, as well as
acquisition of the intellectual property rights (IPRs) such as
patent rights or design rights. At the same time, we pay
scrupulous attention and respect to the IPRs of other companies.
To this end, we have developed a rule on handling of intellectual
property, and provided the Intellectual Property Department
with functions to support business units or R&D units including
those in our subsidiaries such as discovery of inventions,investigation of prior arts and IPRs of other companies,
formulation of strategy and response from the perspective ofintellectual property-related laws and regulations. In order toimprove IPR consciousness throughout the Group, we hold agroup-wide Intellectual Property Right and Standardization
Convention every year to commend the strategic applications
that are highly likely to make a contribution to our businessperformance as well as the excellent cases that have greatly
improved business results. We also organize in-house training
programs that match the experience and level of proficiency ofeach employee, and publish the company magazine IP news
five times a year.
Moreover, we promote 1) analysis of the rights owned by
Sumitomo Electric and other companies, 2) IPRs application
based on the business plan or safeguarding know-how against
disclosure and 3) countermeasure to IPRs of other companies,
through concerted efforts among respective divisions, R&D units
and the intellectual property department at IP strategy
meetings or IP committees of each division. In recognition of
our contribution to promotion of the diffusion of the industrial
property rights system and industrial development through theseIP activities, we received the Minister of Economy, Trade andIndustry Award as part of the FY2013 Intellectual Property
Achievement Awards organized by Japan's Ministry of Trade,
Economy and Industry (METI).

Environmental
Preservation

Sumitomo Electric regards internal information including trade
secrets as important management assets and has establishedthe Information Security Policy. In addition, in accordance withthe revision of this policy, we provide education for all
employees every year to ensure their awareness of it. Our
information security measures include data encryption in USB
devices and laptop computers, as well as a system to preventthe use of file sharing software and other prohibited software.
IT staff members of overseas affiliates are also involved in our
initiatives to strengthen information security to promote it on a
global scale. Furthermore, we take measures to address
information security vulnerabilities and improve the monitoring
system to cope with the threat of cyber attacks, as well as
measures to prevent information leakage.

139

Human Resources《 Strengthening of Information Security Measures 》

20

Supply Chain

Sumitomo Electric established its Personal Information
Protection Policy and Personal Information Protection Rules in
April 2005. In accordance with them, we properly deal with thepersonal information of customers, business partners andemployees handled in the course of our business while
complying with laws, regulations and other rules relating to theprotection of personal information. The Company has also
worked to develop and improve the in-house system forpersonal information management through employee
education programs and other means.

Staﬀ in chargeof classiﬁcation

Products & Services《 Protection of Personal Information 》

Main content

Core
Category

In fiscal 2012, Sumitomo Electric reorganized the relevant rules
to improve the information management system, revised rules
and enhance the mechanism to prevent information leakage ineach of its divisions and affiliates. Regarding the use of social
media, we have also established a social media policy, which
specifies our basic approach to its use, as well as social media
guidelines, which provide specific issues to be noted. The
policy and guidelines serve to raise the awareness of
employees. We will continue to promote information
management of the Group through improvement of the system
in domestic and overseas affiliates and enhancement of theinternal training program.

No. ofNo. ofsessions participantsGroup's CSR Activities

Protection of Personal Information,and Information Security

Target of
the training

Governance《 Cooperation with Local Communities 》《 Continuous Implementation of Group-wide Joint Emergency Drills 》

Business Outline

The Sumitomo Electric Group enhances disaster awareness of
employees by implementing joint emergency drills to conduct
the drills in Group companies at the same time twice a year (inthe daytime and at night).
Our production facilities carry out evacuation drills, which
include confirmation of the safety of employees, as well as
inspection of places where hazardous materials are used andsimulation of the initial response to emergency situations.
In the meantime, drills of information transmission and sharing
are also implemented by establishing headquarters ofcountermeasures with the aims of grasping disaster information
promptly, reporting it accurately and promptly to executives
and sharing the information among the Group.

Sumitomo Electric has set forth internal rules on security tradecontrol to ensure compliance with export control regulations
aimed at international security, and established an export
control system headed by a representative director.
Our export activities are conducted after proper screening ofindividual business transactions and obtainment of necessary
export licenses such as comprehensive export license.
Our employees and persons concerned are provided withposition-based training, as well as periodical training, which
deals with the latest cases, and training at the time of their
appointment to the position, so that they are aware of their
responsibility for security trade control and obtain necessary
knowledge.
We also conduct audits in the Company and its affiliates inJapan and overseas constantly to monitor proper export
activities.

Basis for Management

Furthermore, a table top exercise that simulates the BCPs of
specific divisions and affiliates is organized with relevant
persons to improve the business continuity capabilities.

28

Compliance
Efforts to Pursue Fair Business
Activities Worthy of Society's Trust
Sumitomo Electric believes that complying with laws and regulations
and maintaining corporate ethics comprise the backbone of its
management; these matters are its social duties as a corporation, andform the absolute basis for the Company's continued existence anddevelopment. In recognition of this understanding, Sumitomo Electric
has developed the compliance system. Despite our efforts in thisregard, in February 2003 Sumitomo Electric received notice from theJapan Fair Trade Commission (JFTC) advising us to end a practice that
violated the Act on Prohibition of Private Monopolization and
Maintenance of Fair Trade. This has led us to redouble our ceaselessefforts to further strengthen our compliance.
Nevertheless, in May 2010, we received Cease and Desist Orders andother orders from JFTC in connection to the sale of optical fiber cables
and related products. In addition, concerning the supply of automotive
wiring harnesses and related products, we received a surcharge
payment order from JFTC in January 2012. The European Commission
also notified us of its decision finding infringements of EU competition
law in July 2013. (The Commission granted immunity from fines to theSumitomo Electric Group as a result of the Group's cooperation in theinvestigation. Sumitomo Electric has also been cooperating withauthorities conducting investigations in the United States, Canada andAu s t r a li a , a n d t h e r e f o r e , d o e s n o t e x p e ct t o b e cr i m i n a l l y o radministratively fined or otherwise sanctioned by these authorities
concerning the supply.) In August this year, the National Development
and Reform Commission of China imposed a surcharge on the
Company for its violation of the country's Anti-Monopoly Law.
Following its investigation launched in January 2009, the European
Commission imposed a surcharge on us in April 2014 based on its
decision that we had violated EU competition laws concerning the
supply of high voltage and special high voltage power cables.
In response to the on-site investigation by JFTC in June 2009
concerning optical fiber cables and related products, we have taken
corrective action out of recognition of the seriousness of the matter,
including thorough compliance with the Antimonopoly Act and prompt
recruitment of outside experts to conduct studies into otherinfringement behavior, if any, in order to identify and eliminate conductthat violates the Act. Additionally, we have conducted intensive
compliance training, enforced Competition Law Compliance
Regulations, and established a system to ensure the administration andmanagement of the Regulations by specialized organizations, etc., inorder to reinforce competition law compliance by the entire Group.
While the decisions by the Japanese and other competition authorities
concerning automotive wiring harnesses and related products, as wellas high voltage and special high voltage power cables, apply toviolations that predate these preventative measures, we deeply
recognize the gravity of the situation and are striving to implement fairbusiness activities that merit the trust of society, identifying competition
law compliance as a top priority issue in our business management.

Compliance Committee
The Sumitomo Electric Group has established the Compliance
Committee, chaired by the President, as an organization that
promotes measures necessary to develop and further
strengthen the compliance system. The Committee engages invarious activities, including preparing and distributing theSumitomo Electric Group Compliance Manual and organizing
compliance training seminars. In addition, the Committee
identifies and analyzes group-wide compliance risks,disseminates preventive measures and monitors thecompliance activities implemented by each division andsubsidiary. In fiscal 2014, the Committee held four meetings(May, September and November 2014, and March 2015).

Manual is also based on the Sumitomo Spirit, the Sumitomo
Electric Group Corporate Principles and the Sumitomo ElectricGroup Charter of Corporate Behavior. We distributed thismanual to employees in Sumitomo Electric as well as those inits subsidiaries in Japan.

Compliance Education
To check compliance risks, ensure implementation of
preventive measures and develop and enhance awareness ofcompliance, the Compliance Committee organizes regulartraining seminars for all officers and managers every year. New
employees and newly promoted personnel are also provided
with training seminars. In fiscal 2014, the annual training
seminars for managers were held with compliance withcompetition laws, prevention of bribery and false claims of
quality as the subjects, and we also disseminated the
Speak-Up System as mentioned later.
Compliance training seminars were held as shown in the tablebelow.
TargetPeriodOﬃcers (including executive oﬃcers)

Dec. 2014

Managers of Sumitomo Electric andits subsidiaries in Japan

Feb. - May 2015

Newly promoted personnel

Feb. - Mar. 2015

New employees of Sumitomo Electric

Apr. & Oct. 2014

Speak-Up System
We have established the Speak-Up System, which enables
employees, business partners and other parties to directly
report and consult on potential compliance-related issues, so
as to identify and resolve such issues by ourselves at an earlystage. In addition to the Company's compliance staff, a law firm
and a call center firm have been appointed as external
contacts in the Speak-Up System. To address issues reported
through this system, the Compliance Committee swiftly
conducts investigation and takes necessary action. Sumitomo
Electric has instructed Group companies in Japan to establish
their own in-house consultation contacts. At the same time,
Sumitomo Electric positions its external contacts as the ones
for the entire Group. Furthermore, the Company has instructed
overseas Group companies to establish their own in-house
consultation contacts while also setting up external contacts toreceive reports on a global scale. We inform employees of the
Speak-Up System at the time of various internal training
sessions and also work to disseminate it through monthly
in-house magazines.

Strengthening of the Competition Law Compliance System
For competition law compliance, which is positioned as themost important assignment in our compliance activities, we
determined and announced in June 2010 the strengtheningof our competition law compliance system through themeasures mentioned below. All employees and officers at
the Sumitomo Electric Group are firmly engaged ineliminating cartel and collusion, including suspicious acts,
and preventing recurrence.

１. Developing competition law compliance rules

Compliance Manual
The Compliance Committee has prepared the Sumitomo
Electric Group Compliance Manual, which explains specificinstructions to be followed by employees in their daily workand other situations so that they can act in a sociallyacceptable way from legal and ethical perspectives. The

29 CSR Report 2015

In June 2010, Sumitomo Electric formulated newCompetition Law Compliance Regulations, which containprovisions restricting contact with competitors, and put
them into effect. We then promoted the introduction ofsimilar rules and regulations into our subsidiaries in Japanand overseas, and completed it by fiscal 2012.

Supply Chain
Human Resources
Environmental
Preservation

Results of Overseas Compliance Training Seminars
Anti-bribery Course From Apr. 2014 to Mar. 2015
Total number ofseminars
Number ofparticipating companies

96 in total

Number of trainees

137 in total＊

29

Social Contribution

Sumitomo Electric has been considering competition laws
to be a priority matter to be observed in the Compliance
Manual. New sales-related Competition Law Action
Guidelines for employees that also take account of foreigncompetition laws and clearly specify prohibited conducts
and matters to be observed were established in October2010 as action guidelines specialized for compliance withcompetition laws. All employees involved in sales received
training regarding these guidelines in the sessions organizedin October to November 2010, as well as in the compliancespecial training seminars held in fiscal 2013. We willcontinue to make efforts to ensure compliance with theguidelines.

To develop a group-wide compliance system on a global scale
based on a wide concept including compliance management,
corporate ethics and the Sumitomo Spirit, Sumitomo Electricorganizes visits to affiliates to provide compliance training
seminars for top executives and local managers of overseas
affiliates.
Our staff visited our main overseas offices and organizedcompliance training programs designed for local managers ofoverseas affiliates, which included Basic Course (from April
2008 to September 2009) and Advanced Course (from January2010 to June 2011), with the aims of instilling the awarenessof compliance and creating a sense of unity as a member of
the Sumitomo Electric Group. We also send the CD recordingof the lectures, along with the training materials used in theprevious training programs, to overseas affiliates, which include
the companies that we could not visit due to the schedule orfor a geographical reason, so that such affiliates can arrange
compliance training programs in a voluntary and continuous
manner.
In addition, we organized Competition Law Basic Course
Seminars from October 2011 to September 2012, which
specifically focused on competition laws, and have also
provided training sessions for Overseas Bribery Prevention
Managers as part of the anti-bribery measures mentioned
above since January 2014.
We will continuously endeavor to further improve thecompliance system of each overseas affiliate throughcooperation with the relevant divisions.

Products & Services

４. Establishing action guidelines forcompetition law compliance

Developing the Compliance Systemamong Overseas Group Companies

Core
Category

In spring 2010, instead of the regular compliance training
programs for managers organized every year, special
training programs on compliance with competition laws
were conducted for all members of Sumitomo Electric andits subsidiaries in Japan (excluding employees engaging in
manufacturing). In total, 81 sessions were held in 40
locations nationwide for 5,000 participants.
We also include competition law-related issues as an
essential key subject in the periodical compliance training
sessions to promote the thorough improvement ofawareness among employees. In fiscal 2013, we organizedspecial training seminars with focus on compliance withcompetition laws. These seminars were conducted in
response to acknowledgement in December 2012 that,concerning the order for construction of overheadtransmission lines received from Tokyo Electric Power
Company, Inc., which was operated in the form of an
ordinary joint venture, an employee at Sumitomo Electric
engaged in cartel activities as a member of the joint
venture.
In the meantime, we set up a global e-learning system infiscal 2013 to provide training on competition laws in 11
languages for employees in Sumitomo Electric and its
subsidiaries in Japan and overseas.

Group's CSR Activities

３. Enhancing and continuing compliance law training

Governance

Sumitomo Electric introduced an anti-bribery program in
April 2013 to enhance its anti-bribery compliance systemon a global scale. This program has established rules onbribery-related issues, including ban of bribery, as well as ex
ante approval and ex post report on gifts, donations andoﬀering entertainment, in the Anti-bribery Compliance
Regulations in response to the recent tightening of
regulations on bribery of domestic and foreign publicoﬃcers in the US, Europe and emerging markets. One
Bribery Prevention Oﬃcer and one Bribery Prevention
Manager are also appointed in each unit to build a system
to apply the rules. The anti-bribery program, which has
been conducted for more than two years, is operated
smoothly under the initiative of the Bribery Prevention
Manager at each division.
Almost all of our subsidiaries in Japan and overseas haveintroduced the program to operate it. As the legal system,
standards, customs, etc. are diﬀerent between countries,
we act in a careful manner in other countries even morethan in Japan. We provided special training sessions(including lectures by local attorneys) for the Bribery
Prevention Managers in the respective countries from 2014
to the beginning of this year. We will continue to work tomaintain and enhance the global bribery prevention andcompliance system through continuous education, review ofthe operation manual and collection and dissemination of
relevant information.

Business Outline

In June 2010, Sumitomo Electric formed the Competition
Law Compliance Office in its Corporate Staff Group and theSales Compliance Office in its electric wire-related sales
group as organizations dedicated to promoting compliancewith competition laws. The Company also appointed acompetition law compliance manager and a person in
charge of promoting the compliance at each of other units.
In addition, we established the Automotive Compliance
Office in the Automotive Business Unit in March 2011.
Under the Compliance Committee, the Competition Law
Compliance Office closely cooperates with the dedicatedorganization or person in charge of each of the units involvedin actual business activities. By operating the rules to restrict
contact with competitors based on the Competition Law
Compliance Regulations and promoting related activities
such as monitoring and auditing of compliance withcompetition laws and the Competition Law Compliance
Regulations, we will develop an effective system involving thefront-line players to prevent recurrence of violations.
Established in the respective business units subject to thescrutiny of competition authorities, the Sales Compliance
Office and the Automotive Compliance Office promotethorough measures on the front line, such as conducting
periodical hearings on compliance with competition laws
and monitoring of orders.

Anti-bribery Measures

Basis for Management

２. Forming dedicated organizations andestablishing an auditing system＊ As a general rule, exclusively for the Bribery Prevention Managers

CSR Report 201530

CSR Management

CSR Basic Policy
The Sumitomo Spirit, which gives top priority tosocial credibility and corporate ethics, isdeeply instilled into the Sumitomo ElectricContribution toa better society andenvironment

Group. With the Sumitomo Spirit, as well as theSumitomo Electric Group Corporate Principles,
serving as the basic value standards that guideBasiccomponentsof CSRus, we will contribute to a better society andenvironment through business operations in

Social contribution throughbusiness operations

Five CSR core
categories

line with compliance regulations.

Good products and service
Technological innovation
Dividend and tax payment
Employment creation, etc.

We have specified five CSR core categories:
products & services; supply chain; humanresources; environmental preservation; andsocial contribution. Based on this approach, wewill establish good relationships withstakeholders and continue sustained growthwith the aim of becoming a Glorious Excellent

Basic value
standards

Company, i.e., realizing the ideal state of theSumitomo Electric Group, so as to fulfill our
corporate social responsibility.

Contribution to
the establishment ofa sustainable society

From FY2013

Five CSR core
categories

Products & services
Supply chain

Priority themes for achievement of

CSR priority themes the targets for VISION 2017

Solutions tosocialchallenges

Innovation
Promotion of CSR procurement

Human resources

Promotion ofdiversity

Environmental
preservation

Prevention of
global warming

Social contribution

Promotion of social contribution activities at businesslocations Contribution through the SEI Group CSR Foundation■■

Setting of KPI＊: The indicator will be determined
after establishment of the global HRM system

Achievement of
VISION 2017targets

KPI (target for FY2017): Reduce global greenhousegas emissions by 5% from the FY2012 level

Sumitomo Electric Group CSR Promotion System
In July 2004, Sumitomo Electric established the CSR Committee, which
is chaired by the officer in charge of personnel and generaladministration and comprised by the managers of the departments incharge of CSR-related areas. Under the system shown in the figure

1. Holding semiannual meetings to review the CSR
activities from a group-wide perspective and give
support and guidance on the future development.

below, the Committee conducts its activities as a cross-sectional

2. Promoting internal and external information
disclosure and public hearings on CSR.

organization to promote CSR initiatives in the Sumitomo Electric Group.
The roles of the CSR Committee include:

3. Promoting CSR education programs throughout the
Sumitomo Electric Group, etc.

Management Conference: Deciding CSR basic policy
Report on objectives and results

Society (stakeholders)External disclosure

Instructions and guidance

Public hearing function

CSR Committee: Promoting business philosophy and visions, compiling the results of CSR activities and disclosing information inside and outside the Company
Category

Information
disclosure andinformation
protection

Compliance

Public Relations Dept.
Department
in charge

Legal Dept.

Investor RelationsOﬃce, Accounting
Div.
Information
Systems Dept.

Target and achievement report

Environmentand safety

Procurement
and logistics

Safety &Environment Dept.

Procurement Div.

Plant & Production
Systems
Engineering Div.

Support and guidance

Respective business sections and Sumitomo Electric Group companies

Quality andcustomer satisfaction
improvement

Employees,
human rights andsocial contribution

Quality
Management Div.
Logistics
Management Dept.

HR &Administration Div.

Information
Systems Div.
Sales Planning &Marketing Div.

Promotion and education ofbusiness philosophy and visions

Human resources
development

Human Resources
Development Dept.
Plant & Production
Systems
Engineering Div.

Public hearing function

Employees

Glossary ＊KPIKey Performance Indicators

31 CSR Report 2015

Relationships with Stakeholders

Main responsibilities of the Sumitomo Electric Group

Main means of communications●

Compliance with laws, regulations,administrative guidance, etc.
● Tax payments● Cooperation for government policies tosolve public problems●

We promote environmental management
based on our policy that places environmental
conservation activities as a top businesspriority.

●

Reduction of greenhouse gas emissions
Promotion of energy saving and recycling● Reduction of the amount of waste, reduction of
the release of harmful chemical substances●

GlobalEnvironment

●

●

●

Supply of socially useful andsafe products and services
Improvement of customer satisfaction
on all aspects including delivery time, etc.
● Provision of accurate andappropriate information on products●

Customers

We provide customers across the world
with a wide range of products and services
in ﬁve categories: Automotive; Information &Communications; Electronics; Environment &Energy; and Industrial Materials.

The Sumitomo Electric Group conducts
business activities through 390 companies
located in approx. 40 countries all over theworld (as of March 31, 2015).

●

Respect for culture and custom,
contribution to development● Prevention of accidents and disasters,
environmental conservation● Cooperation and coordination for the solutionof environmental and other problems●●

Employees

The Sumitomo Electric Group has approx.
240,000 employees consisting of approx.
39,000 employees in Japan and approx.
202,000 employees in other countries.
Around 80% of the Group employees thus
work outside Japan (as of March 31, 2015).

Shareholders
andInvestors

The total number of our shareholders is approx. 63,000,
and the number of shares issued and outstanding isabout 800 million. By type of shareholders, ﬁnancial
institutions and foreign holders own 37.76% and 42.95%
of the shares respectively, followed by Japaneseindividuals and others (12.43%) (as of March 31, 2015).

CentralandLocal Governments

Participation in events, support of traditional performing arts
Factory tours, opening of facilities, joint hosting of festivals
Employees' contribution to local communities● Communication through cooperation and support● Stakeholder dialogue●●

Respect for human rights,
personality and individuality
Development, use and evaluation of human resources● Creation of a work environment where all
employees can demonstrate their capabilities● Contribution to occupational safety and health

●

●

●

Maintenance and improvementof the corporate value
Proper return of the proﬁts (as dividends)● Timely and proper disclosureof corporate information●

General meetings of shareholders
Financial result brieﬁngs
Reception of investors and interviewers● Annual reports● Investor relations website

●

●

●

●
●

Surveys to create a lively work environment
In-house magazines, Global Magazines
Intranet, President's blog
● Management council meetings fordiscussion between labor and management● Informal meetings between executives and employees●●●

Fair trade
Support and cooperation for
the achievement of CSR procurement●●

Communication through daily procurement activities
Partners' meetings
Communication through the supplier survey sheet andother channels

Communication with
Shareholders and Investors

Results of Information Transmission through SEI's Main Media by Year
（Number）

200

172

150

85

80

80

162

90
59

50

51
20

14

2013

2014

0

2013

2014

Press release

2013

2014

Interview

2013

2014

Newsletter(Number of articles)

2013

2014

President's
blog

Blog
Smile Relay(Fiscalyear)

CSR Report 2015

Social Contribution

100

Environmental
Preservation

Sumitomo Electric believes that an important goal of its
investor relations is to notify market participants of accurate
information in a timely and fair manner, so as to obtainappropriate evaluation of our corporate value in the capital
market.
The Company works to enhance communication withinstitutional investors and analysts at such occasions as
briefings on financial results and interviews. For generalshareholders and investors, we post a wide range of
information on our websites, including financial information,press releases and materials distributed in financial result
briefings as well as relevant video images.
We will continuously promote fair and prompt information
disclosure and further improvement of the content.

Human Resources

Sumitomo Electric continued its commitment to active
dissemination of information on a wide range of activities of
the Group through various media such as press releases,
interviews, newsletter SEI WORLD and websites in fiscal
2014 to help our stakeholders improve understanding of theGroup.
In January 2015, we introduced a visual identity (VI) in aneffort to enhance awareness of our brand. The VI aims togive consistency to visual elements used for company
communications, such as designs, logos, colors and fonts,
throughout the Sumitomo Electric Group and establish acommon impression and world-view. It is applied to various
publications and promotion materials.
Our websites were wholly redesigned in January 2015 withemphasis on the visibility, especially the menu and font size.
The layout was also improved to help visitors find the pages
containing the products and information they seek moreeasily.
President & CEO Masayoshi Matsumoto's Blog marked its
eighth anniversary, and 51 entries were posted on the blog
during fiscal 2014. This blog thus serves as an effective tool
to promote interactive communication with stakeholders.

Supply Chain

The Sumitomo Electric Group Charter of Corporate Behavior
stipulates that we will aim to disclose appropriate corporate
information to our stakeholders to promote communication
with society. In accordance with the charter, we haveestablished a system in which information on occurredmaterial facts and decisions is collected and confirmed bypublic relations sections in cooperation with relevant
divisions so as to promote timely and accurate information
disclosure. In addition, Sumitomo Electric established the
Public Relations Committee in 2006 as a cross-sectionalorganization to enhance the information disclosure system.
The committee engages in activities such as development ofrules on corporate information disclosure, related educationand knowledge dissemination within the Group and planningof measures to enhance the corporate brand value.

Products & Services

Efforts to Disseminate Information

Core
Category

Disclosure of Corporate Information

Group's CSR Activities

The Partners' Meeting held in ﬁscal 2014
gathered 120 of our main suppliers.

Communication through daily operations
Newsletters, e-mail delivery, websites● Information exchange at exhibitions etc.
●

GovernanceSuppliers●

Comply with the relevant laws and regulations
Environmental conservation activities inaccordance with the PDCA cycle● Stakeholder dialogue

Business Outline

Sumitomo Electric Group

Local Communities
andNPOs/NGOs

Communications through economic
organizations and trade associations● Notiﬁcations, response to surveys and questionnaires● Consultation with competent authorities,
public comments

Basis for Management

Outline of the stakeholder
For us, central and local governments
around the world are not only regulators
but also customers of our products andservices.

32

Main Targets and Actual Results in Fiscal 2014 / Main Targets for Fiscal 2015
In the Sumitomo Electric Group, the departments in charge of the CSR core categories respectively set annual targets, prepare specific action plans based on
the annual targets and work to achieve them autonomously. The table below shows the main targets and results in fiscal 2014 and targets for fiscal 2015 on
the main initiatives in core categories. To meet the targets, we will continue to promote the initiatives based on the PDCA (plan-do-check-act) cycle.
Core
Category

Main Targets for Fiscal 2014

Results in Fiscal 2014

Products & services

Reduce complaints by 18% fromthe previous ﬁscal year

Reduced complaints by 6% fromthe previous ﬁscal year

Continue to promote own process quality assurance
activities (ﬁfth year)
Continue activities striving toovercome key isuues at each division① Determination of defect-free process conditions,② Maintenance of defect-free process conditions,③ Pursuit of defect-free process conditions
Accelerate introduction of the activities into global
facilities
Apply the examination of the approach to reduce
in-process defects to more sites

Performed theme-based activities (105 themes)
at each division, expanded the activities into
overseas facilities, mainly in China (3 regions)and promoted the activities through inspectionof the divisions involved and exchange meetings(using the core items of the examination of theapproach to reduce in-process defects in theinspection)●●

Evalu Page
ation

△ 38

Main Targets for Fiscal 2015
Reduce complaints by 26% fromthe previous ﬁscal year
Continue to promote own process quality
assurance activities (sixth year)●① Stimulation of the activities in the three activity areas② Stimulation of the activities through visit of thedivisions involved in the activities and continuous
exchange meetings③ Stimulation of the activities of the practitioners○ 37●

Supply chain

Continue to implement the education program that
supports compliance, and translate, develop andapply common basic rules on procurement

●

●

●

●

Promote initiatives to implement the Global HRM Policy
Promote the establishment and improvement of the
Global Grade System and the Global Executive
Personnel System, which were introduced in April 2014
Steadily continue the talent management cycle
Prepare guidelines on international transfer, etc.
Cooperate with HR managers in main overseas facilities

●

●

●

●

●

●

●

●

Develop the SWiTCH 17 Campaign (ﬁrst year)
Work style (review of the way of working, adjustmentof working hours, improvement of work eﬃciency)
Communication (cultivation of a corporate culture
to praise, thank and appreciate)
Healthcare (improvement of physical and mental health)Self-development (encouragement of employees topursue self-development)

●

●

●

●

Human resources●●

Eliminate serious accidents and accidents resulting
in lost time work, and reduce the total number of
no lost work time accidents and accidents causing
minor injury to 20 or less●

Used opportunities such as start of business with a new
supplier and the partners' meeting to ask suppliers to
act in line with the CSR Procurement Guidelines
Conducted a questionnaire survey of 830 business partners
that had a certain scale of business on an ongoing basis
concerning compliance with the CSR Procurement Guideline

Implemented and expanded the complianceeducation program on procurement (thenumber of persons who took the course
increased by 27% from the ﬁscal 2013)
Prepared common basic rules on procurement
including English and Chinese versions
Recognized 24 persons in April 2014 and 7 persons in
April 2015 as Group Global Executives, and extended theapplication of the personnel rating system for Japanesemanagers to Group Global Executives in ﬁscal 2014
Took inventory of human resources and continued toorganize human resource meetings at Business Units
Almost completed preparation of draft guidelines oninternational transfer
More consideration of the practical aspect is needed
before the formal issuance
Invited HR managers in main overseas facilities to hold anoverseas HR manager meeting in September 2014

Whole Group
Promotion of the campaign through the dedicatedwebsite, posters, in-house magazines, etc.
Promotion of the activities in the workplace
Appointment of a committee member in charge ofthe operation of the campaign in each workplace,organization of meetings in each of the Works,
setting of the target at each Business Unit
Company-wide measures
Consideration of ﬂexible working styles, dissemination of
the Data Health Plan, revision of the town meetings, etc.

Eliminate serious accidents and accidents resulting
in lost work time: 15, no lost work time accidents+ accidents causing minor injury: 31

○

41
42

●

○ 44

●

△

45

●

○ 51

57

In Japan: Assessed facilities' water quality at
6 sites
Overseas: Conducted legal compliance audits
at 3 sites, assessed facilities' water
quality at 7 sites

Improve environmental education
In addition to the existing education programs,
introduce practical training using the past incidentsof hiyari or near-miss and issues indicated in past
audits into all courses in the position-based training
and into construction work training

Provided professional education on laws andregulations 4 times for 310 persons in total

Increase monetary contributions to university
courses, scholarships and grants to academic andresearch activities supplied through the fund

① Monetary contributions to university courses:
92 million yen in total for 9 courses② Subsidies for academic and research programs:
21.8 million yen in total for 19 programs③ Supply of scholarships:
24.9 million yen in total for 98 persons

Promote cooperation with NPOs for support of thereconstruction of the Tohoku Region and otherpurposes

Held a fair of products from the Tohoku region to
support the region's reconstruction from theGreat East Japan Earthquake

●

●

●

●

●

●

Environmental preservation

Provided position-based environmental
education 35 times for 611 persons in total●

Whole Group
Continuation of the promotion activities, and considerationof a awarding system in the workplace
Company-wide measures
Continued consideration of ﬂexible working styles,
ongoing consideration of measures to optimize working
hours and encourage employees to take paid holidays,
promotion of mental health measures, expansion of
initiatives to promote self-development, etc.

Implement priority items for ﬁscal 2015
Promote the establishment of the priority activities① Inspection to prevent serious disasters② Safety! Switch/Power oﬀ campaign③ Safety measures for two-worker operation④ Prevention of recurrence of accidents involving injury
Promote an upward spiral of the activities① Global safety evaluation② Dissemination and application of the safety global
standards
Develop activities at the operation sites designated forsafety management and activities subject to priority
management in the departments where injury occurred
frequently

Conduct environmental audits
In Japan: Promote the second series of legal compliance
audits, and continue the examination offacilities in terms of water quality
overseas: Conduct audits at 9 Group companies in theAmericas. Start the examination of facilities in termsof water quality with sites in China including thosethat have undergone legal compliance audits●

Continue education for human resource development inJapan and overseas, as well as practice activities in KKP
Promote activities to prevent unsafe actions
Continue and enhance activities at the operation sites
designated for safety management＊ and activities
subject to priority management
Develop and disseminate safety global standard
Continue to implement global safety evaluation

Develop global activities of the HR Division① Dispatch of trainees from the HR Division② Acceptance of local employees of overseas Group
companies into the HR department③ Dispatch of HR expatriates to Europe

Eliminate serious accidents and accidents resulting
in lost time work, and reduce the total number of
no lost work time accidents and accidents causing
minor injury to 20 or less

▼ 60

●

Implement the Global HRM Policy① Promotion of the talent management cycle② Setting of personnel rules to be commonly applied
on a global scale▼ 58

Out of the 14 items, Performance improved（◎、○、△）: 12 items, Performance unchanged（▽）: 0
item, Performance deteriorated（▼）: 2 item●

Continue to implement the education programthat supports compliance
Extend the application of common basic rules on
procurement to overseas Group companies

Develop the SWiTCH 17 Campaign (second year)

Achieve the targets in all items in
the Action ECO-21 (Phase Ⅴ) campaign

●

●

46

○

●

●

Continue to make requests based on the CSR
Procurement Guidelines to individual suppliers andexpand the initiative. Promote the expansion of
supplier monitoring●

Issued a safety and environmental notice Second
Half Emergency Measures and requested
identiﬁcation① Inspection to prevent serious disasters② Safety! Switch/Power oﬀ campaign③ Safety measures for two-worker operation④ Prevention of recurrence of accidents involving
injury in the respective divisions
Conducted practice activities in KKP for 443 persons
in Japan and overseas
Conducted activities at the four operation sites
designated for safety management and activities
subject to priority management
Developed two types of safety management global standards
Implemented global safety evaluation at 43 sites inJapan and overseas

Implement priority items for ﬁscal 2014
Enhance site inspection by managers and supervisors(1-2-3 activities＊) and identiﬁcation of problems
through dialogues
Strengthen the horizontal diﬀusion of accident
prevention measures to eliminate similar disasters

Overseas① Development of quality control training for
managers in global bases●

Continue to make requests based on the CSR
Procurement Guidelines to individual suppliers andexpand the initiative. Promote the establishment of
supplier monitoring

In Japan

●

58

●

●

▽

61
62

○ 61

Provided sectoral education for 196 persons in total

Achieve the targets in all items in
the Action ECO-21 (Phase Ⅵ) campaign
Conduct environmental audits
In Japan: Promote the second series of legal compliance
audits, and continue the examination offacilities in terms of water quality
overseas: Conduct audits at 8 Group companies in theAmericas. Start the examination of facilities in termsof water quality with sites in China including thosethat have undergone legal compliance audits
Continue the practical training introduced in ﬁscal
2014, in which simulated diagnosis is conductedusing the actual products and sites of hiyari ornear-miss cases and issues indicated in past
auditsSocial contribution○ 73

Increase monetary contributions to university
courses, scholarships and grants to academic andresearch activities supplied through the fund

○ 74

Promote cooperation with NPOs for support of
the reconstruction of the Tohoku Region andother purposes

Participated in the TABLE FOR TWO program

Legend ◎: Target achieved and performance far exceeding the target by more than about 50%; ○: Target achieved; △ : Target not achieved (performance improved from the previous ﬁscal year);▽ : Target not achieved (performance similar to that in the previous ﬁscal year); ▼ : Target not achieved (performance deteriorating from the previous ﬁscal year)

Glossary ＊1-2-3 activities

33 CSR Report 2015

Activities of leaders in the divisions as well as managers andsupervisors to inspect sites twice (2) in one (1) day to make overthree (3) indications or warning calls to identify problems＊Activities at the operation sites designated for safety management
At the operation sites designated as requiring prompt improvement of the health and safety
activities due to occurrence of an occupational accident or other reasons, these activities
are promoted to take necessary measures in a planned manner and improve the structure.

〈 CSR Core Category 〉

Research & Development

Products & Services
Innovation

Technology is the engine of the future and the very source for
growth. From our origins as a copper business, we have
We will continue striving to create new technologies andproducts with due consideration of future social needs, andfurther accelerate our commercialization of technology inresponse to this time of rapid change.

Receiving Thomson Reuters
Top 100 Global Innovators Award
Sumitomo Electric received Thomson Reuters Top 100 Global
Innovators Award in 2014 for the second straight year,
following 2013. This award is given by Thomson Reuters toGovernance

The Sumitomo Electric Group considers
innovation, which is to create products withoriginal features and future potential, as a priority
theme. Using a wide range of technologies andproducts owned by the Group, we are promoting
R&D activities that can contribute to the creation ofa sustainable society.

developed a wide variety of technological bases.

Business Outline

Our social contribution begins withthe development of products andservices that meet new social needs.

Basis for Management

Promoting research and development withdue consideration for the future andcreating innovative technologies and products〈 CSR Priority Theme 〉

100 companies that are vigorously working on innovative
developments, are committed to protection of intellectual② Enter the life-science business ﬁeld
③ Enter the resources business ﬁeld

property rights and have generated globally influential
inventions. Using strict analytics and objective data, Thomson
Reuters analyzed patent activities to select the world's mostinnovative companies. The four criteria for selection are:Success rate(the ratio of granted patents to patentapplications), Global reach (patent portfolio in major world
patent offices), Influence (the patent impact determined by
the citation frequency during patent examination) andGroup's CSR Activities① Expand into integrated business ﬁelds Contribution to the establishment of asustainable society with a new style ofelectric power and energy

Volume (the number of innovative patents).
The Sumitomo Electric Group has been pushing ahead with

Chihoko Mizue

ingenious products, such as superconducting cables andGroup 2, Device Process Development Department, Electron Device Division,
Sumitomo Electric Device Innovations, Inc.

nano-diamond. We believe this recognition is due to thecontribute to the progress of society, in accordance with thefollowing principles: Attaching importance to technology,
and Building technical expertise, realize changes and strive
for consistent growth. Our efforts have resulted in manycollective effort of the Sumitomo Electric Group.
With our superb creativity, we at the Sumitomo Electriccommunication with smartphones andother equipment, GaN HEMT＊ is used asGroup will continue to develop original, excellent

a device to amplify signals. This new

trends.

technologies, anticipating social changes and technologicaltransistor we developed requires no
Number of Patents Year by Year

contributed to reduction of the size of(Number of patents)

communication base stations installed on

8,000

buildings and in underground malls. This is

7,000
5,000

meet the social demand for diﬀusion of

4,000
3,000

0

transistor. Reduction of power consumption in

4,804

4,894

2009

2010

In Japancommunication base stations is crucial as smartphones are

5,411

6,225

7,064

7,621

6,824

7,030

●
●
●

2011

2012

2013

2014

(year)

In other countries

Figure as of December 31 of each year
The ﬁgures in Japan are the total number of patents, utility models and designs.
The ﬁgures in other countries are the sum of the total number of patents,
utility models and designs in each country.

research since I joined the company in 2011. Working inYamanashi, which is close to the production site, I would
like to continue the research and development of GaN
HEMT to achieve higher power ampliﬁcation with even lessSocial Contribution

As I studied GaN HEMT at university, I have engaged in this

6,651

Environmental
Preservation

1,000

around 25% in comparison with conventional silicon-based

scale. I am also proud that I contributed to the reduction.

6,440

2,000

in decreasing the power consumption of GaN HEMT bybecoming widespread at an explosive pace on a global

6,341

6,000

deﬁnitely an innovation because it helped
LTE communications. We also succeeded

6,337

Human Resources

cooling system and has greatly

Supply Chain

In the base stations that are needed for

Products & Services

development of new products and businesses that willCore
Category

High capacity communication withsmartphones is supported by communicationbase stations. Our technology is used toreduce the size of the stations.

power consumption and realize more innovations.

Glossary ＊GaN HEMTHigh Electron Mobility Transistor (HEMT) using gallium nitride (GaN)CSR Report 201534

Research and Development Themes for the Next Generation

Research andDevelopment Expenditures

Research and Development Expenditures
Industriall Materials

Revision to accelerate expansion into
integrated business ﬁelds andchallenges in new business ﬁelds

VISION 2017 Initial Plan
Cumulative total:
450 billion yen

135
76Electronics

126

Infocommunications

46
126

VISION 2017
Interim Revision
Cumulative total:
480 billion yen

79

621

Prototypedevelopment,
basic research,
new ﬁelds
135

30

625

142
39
Fiscal 2013

Automotive

644

152

Forecast for FY2015

100 billion yen

95.5
billion yen
Fiscal 2014

105.6
billion yen

35 CSR Report 201575

Environment & Energyrgy◆Commendation for Invention in Fiscal 2014 ◆(Japanese Patent No. 5070688, etc.)(Japanese Patent No. 4912604)

Advanced Materials Laboratory

Sumitomo Electric Device Innovations Inc.

Sumitomo Electric succeeded in the commercialization of
nano-polycrystalline diamond tools through design of dies formass production of nano-polycrystalline diamond and highly
accurate and fast cutting-edge preparation of its cutting tools
for the first time in the world. While conventional tools madeof monocrystal diamond had a problem specific to its crystal
structure that they easily split
along definite crystallographic
structural planes (cleavage),nano-polycrystalline diamondis free of such a problem andhas achieved high hardness.

The nitride semiconductor transistors arecharacterized by high power and high efficiency. The
wafer process was improved to solve the problem ofpower decline occurring at the time of high voltage
drive. This greatly contributed to responding to a rapid
increase in the number ofLTE base stations for mobile
phones, which need toreduce their size and power
consumption.

Invention Encouragement Prize at the Fiscal 2014
Kinki Block Invention Commendation Ceremony

Encouragement Award at 2014
Osaka Outstanding Invention Awards

Method for forming DLC membrane
containing graphite crystal

Filtration module incorporating microporous
double-layered hollow fiber membranes(Japanese Patent No. 5150861)(Japanese Patent No. 3851864)

Analysis Technology Research Center,
Nippon ITF, Inc., Nissin Electric Co., Ltd.

Intellectual Property Department,
Water Processing Division,
Sumitomo Electric Fine Polymer, Inc.

Group's CSR Activities

Nitride semiconductor transistors forhigh-frequency amplification

GovernanceThe development of synthesis technology andapplied products of nano-polycrystalline diamondBusiness Outline

Invention Encouragement Prize at the Fiscal 2014
Kinki Block Invention Commendation Ceremony

Basis for Management

The 60th Okochi Memorial Technology Prizeof the Okochi PrizeCore
Category
Products & Services
Supply Chain

The new hollow fiber membrane made ofpolytetrafluoroethylene (PTFE) has a double-layered
microstructure, and the surface of it can prevent
invasion of particulates to avoid clogging anddramatically increase the ability to filter polluted
water. The fibers are characterized by high filtration
precision and superb chemical and heat resistance,along with high tensile strength, and can be applied tovarious types of water
treatment.

Human Resources
Environmental
Preservation

This technology is related to hard carbon film forcoating. DLC (diamond-like carbon) is amorphous in
structure, containing both diamond bond(sp3) andgraphite bond(sp2). As such, DLC has both diamond-likeand graphitic properties. DLC has characteristics such as
high hardness and wear resistance, low friction, chemical
inertness.DLC coating
becomes the necessary
technique as highly reliablesurface treatment of
automobile parts to achieve
the low fuel consumption.

Social Contribution
CSR Report 201536

Product Quality & Product Safety
Basic Approach

Development of QR-1 Campaign
We have promoted this company-wide campaign for
the improvement of quality and reliability since 1975
As the Sumitomo Electric Group's business activities consist
mainly of business-to-business (B2B) transactions, we believethat above all further quality improvement for our products willlead to greater customer satisfaction. Thus, we launched thereliability improvement campaign throughout the Group in
1975 based on our customer-oriented and quality-oriented
policies. Since then Sumitomo Electric has carried out the
campaign with the priority subjects selected according to theneeds of the times. We launched the
QR-1 campaign in ﬁscal 2002, aiming to
improve quality from the viewpoint ofcustomers, prevent quality risk andestablish its structure for quality and QR-1 campaign logo
reliability to overtake the competition.

QR：Quality & Reliability

Own Process Quality Assurance Activities
Aiming for Zero Complaints
We are introducing the degree of quality assurance assessmentand efforts for improvement into overseas sites as wellIn the QR-1 campaign, we have promoted own process quality
assurance activities, which are comprehensive efforts toprevent defects from being produced or passed down to thefollowing process in each process, for five years since 2010.
The divisions of the Sumitomo Electric Group, which manufacture
various types of products, are committed to their important
themes on own process quality assurance activities. The Quality
Management Division works to promote such activities throughpractitioner training education, exchange meetings between
different divisions and other support measures.
We also introduced the degree of quality assurance, anindicator of the activities to eliminate defects in processes.
Visualizing quality risks with this indicator, we develop theactivities in a more quantitative manner.
In the system of the degree of quality assurance, the rank ofprevention of defect occurrence and the rank of prevention of
defect flow-out are respectively determined by type of defectin each process on a four-point scale from 1st (sufficiently
prevented) to 4th (not prevented), and combined to determine
the degree of quality assurance on a six-point scale from S to E.

37 CSR Report 2015

Process

Process

Produceno defect

Produceno defect

Pass
no defect

Good
productsGood
products

Shipment

Inspection
Good
products

Pass
no defect

We consider that the degree of B or higher should be achieved
to prevent occurrence of complaints. For example, even when
the rank of prevention of occurrence is 2nd (no defect is
produced in a normal operation), if the rank of prevention of
being passed to the following process is 4th (defects cannot be
prevented from being passed to the following process), thedegree of assurance is only C. Defects can be passed to thefollowing process or the customer in this case, and efforts haveto be made to improve the degree of assurance to B or higher.
The system of the degree of quality assurance allows thedivisions and Group companies to promote activities to fill thegap between the target and current performance in an efficientmanner.
Degree of
Qualityassurance
Rank of prevention of
defect occurrence

In addition to quality of products, the company's attitude
toward quality is evaluated more strictly than ever. Delivery ofhigh quality products in a stable manner requires steady efforts
to systematize daily duties, implement them soundly andcorrect any problems.
In the Sumitomo Electric Group, while each division used toestablish its quality assurance system independently, theSumitomo Electric Group Quality Management Global
Standards was established as a common framework to be
applied to divisions throughout the Group in February 2013.
We encourage the divisions to develop and strengthen their
quality assurance systems based on the standards so that
customers can use the Group's products with a sense of security.
A company-wide quality improvement activity called the QR-1
campaign is also developed, in which we make continuous
efforts to enhance the awareness of quality among all employeeswith focus on the three priority activities of own process quality
assurance activities, global quality management system audits
and quality management education.

Banner for
the QR-1
Campaign

Rank of prevention of
defect ﬂow-out
1st

2nd

3rd

4th

1st

S

S

A

A

2nd

S

A

B

C

3rd

A

B

C

D

4th

A

C

D

E

Rank

Status of the processes and operations

1st

A suﬃcient foolproof mechanism is in placeand defects are prevented from being
produced or passed to the following process

2nd

No defect is produced or passed to thefollowing process during normal operations

3rd

There is a possibility that defects can beproduced or passed to the following
process

4th

Defects cannot be prevented from being
produced or passed to the following
process

We will continue to develop these own process quality
assurance activities on group-wide and global scales in fiscal
2015.

Activities to Enhance Quality AwarenessWe seek to share and enhance awareness throughinspection of manufacturing sites by the top management
and commendation of excellent divisions and individuals
Sumitomo Electric is encouraging all employees to understandthe top management's thoughts on quality and thereby raise
their own quality awareness. To this end, messages from the
President are disseminated through in-house magazines andin-plant broadcasting on the first day of each six-month period,
and the top management inspects manufacturing sites of thedivisions to check whether or not their intentions are reflectedon the operations.
In each site, all workers vow to continue their commitment to
the QR-1 campaign to each other by displaying quality-relatedbanners. In November, which is designated as Quality Monthin the Sumitomo Electric Group in Japan, ﬂags and posters are
additionally displayed to enhance awareness, and each divisionalso selects a subject for short-term intensive activities toimprove the quality structure.
Sumitomo Electric also holds a group-wide Quality
Management Convention twice every year (on May 29 andNovember 12, 2014 during fiscal 2014) to report progress inthe quality indicator, problems in each division, achievementsfrom the efforts and other issues to the top management andshare such information across the Group. At the conventions,
we commend divisions implementing activities that set a goodpractice for other divisions, as well as individual employees
who have created excellent posters and slogans thatencourage awareness of quality improvement to stimulatequality-related activities.

We conducted audits of 65 Japanese bases and18 overseas bases by fiscal 2014
In order to evaluate the quality control activities of the units
in light of the Sumitomo Electric Group Quality Management

Basis for Management

Global Quality Management System Audits

Global Standards from the perspective of customers, as well
we are systematically conducting
management system audits
Quality Management Convention in November 2014

global quality

in the main bases of eachbusiness unit. In the global quality management system
audits, we identify weaknesses of each unit in terms ofBusiness Outline

as to improve weaknesses of their quality assurance systems,

management, design, manufacturing and center function toprovide an opportunity to improve its quality assurance
system, and support to overcome the weaknesses.
Since the start in fiscal 2010, the global quality management

Quality management training designed for managers has beenlaunched to give training to those in charge of productdevelopment, design, manufacturing and quality assurance

system audits have been conducted at 65 sites in total. Most

The Sumitomo Electric Group has provided employees withtraining programs on quality control at the SEI University to
improve and ensure the quality of products and services athigher levels.
In fiscal 2014, we started a new quality management training
course designated for managers as a position-based training
program for those of departments, sections and groups
related to product development, design, manufacturing andquality assurance, and the course has been taken by 340
persons, which account for about 40% of the managers who
are required to take it.
Based on the concept in the Sumitomo Electric Group Quality
Management Global Standards, we issued Global Standard of
Quality Management for practitioners, which also include
information on basic tools for quality control. The standards
in English and Chinese versions have been also prepared anddistributed.
We work to improve various education programs we haveestablished, such as position-based education for all
employees, function-based and administrative-position-based
education according to divisions or positions and optional
education to learn relevant knowledge, as well as practicaleducation including QR-T＊, MKP＊ and GKP＊. Overseas, we
use the personnel education activities of the North America
Manufacturing Committee, as well as the meetings of Quality
Management Work Group of the Human Resource
Development Committee in China, as opportunities toorganize exchanges of information on model cases andprovide training sessions on own process quality assurance
activities. In fiscal 2014, a total of 5,034 persons, including
overseas employees, completed quality management
education programs.
The cumulative number of the persons who completed theprograms since fiscal 2010 has reached 17,677. We willcontinue to develop the culture of quality first involving all
employees.

promoting continuous improvement of the quality assuranceof our main facilities in Japan have completed the second

Governance

Enhancement of
Quality Management Education

round of the audits. The audits are repeated with the aim ofsystem. Overseas, procedures for the auditing activities, suchas collaboration with units having center function, were set
China and Southeast Asia.
To maintain and improve the quality assurance system basedon the Group Quality Management Global Standards, we willcontinue to check progress in compliance with the standards
through global quality management system audits.

We will continue to make steady efforts toeliminate complaints
number of complaints has been decreasing every year. In
fiscal 2007 we began to collect data on a global scale
including data from overseas affiliates, and the number ofcomplaints has declined by about 70% from the figure in
improved to eliminate complaints.
Number of Complaints by Year (results in 2007 = 100)100

Supply Chain

fiscal 2007. However, there are still many issues to be

Products & Services

Thanks to our ongoing quality management activities, theCore
Category

Outcomes of the Quality Management Activities

Group's CSR Activities

up, and the audits were conducted in a total of 18 sites in

100

90

Human Resources

80

67

70
60

54

50

50

49

40

36

30

29

2013

2014 （Fiscal year）

10
0

2007

2008

2009

2010

2011

2012

Environmental
Preservation

31

20(Note) The data cover Sumitomo Electric and its manufacturing aﬃliates in Japanand overseas (including the Sumitomo Wiring Systems Group)

the three main pillars of own process quality assurance
activities,

global quality management system audits andquality management education.
Group discussion in a meeting of Quality Management Work Group of
the Human Resource Development Committee in China in March 2015

Glossary ＊QR-T

Own process quality assurance practitioner
training course to develop key persons for the own
process quality assurance activities in each division

＊ＭＫＰ

＊ＧＫＰ

Abbreviation of MONOZUKURI-KAKUSHIN professional training
Program that is the practical training program to develop
key-personnel (engineers) who are to drive manufacturing innovation.

Abbreviation of GENBA-KAIZEN professional training
Program that is the practical training program to develop
key-personnel who are to promote shop-ﬂoor improvement.

CSR Report 2015

Social Contribution

We will continue to make efforts to eliminate complaints with38

Management ofChemical Substances in Products
We are managing chemical substances properly inaccordance with our own guidelines based onJapanese Industrial Standards(JIS) guidelines
In pursuit of reducing environmental impact of the products of
the Group and our customers, as well as improving compliance,
the Sumitomo Electric Group is committed to proper
management of chemical substances in products. To this end,
we implement the SEI Guidelines for the Management ofChemical Substances in Products (note), which was establishedto specify the items to be carried out at each stage of the
manufacturing process such as procurement, design, production
and quality assurance based on JIS Z7201 "Management ofChemical Substances in Products - Principles and Guidelines."
We have also established the SEI Standards for Chemical
Substance Management, which are the standards for the
management of chemical substances in products to be managed
at each of the stages, and implement the SEI Guidelines forGreen Quality Purchases (note) based on the standards, while
conducting product assessment at the design and development
stages. Through these initiatives, we strive to prevent hazardous
chemical substances with large
environmental impact such as
mercury and cadmium from being
contained in products.
The Sumitomo Electric Group also
has the Chemical Management Task
Committee in place to enhancecoordination within the Group.
(Note) As the types of products and requirements from customers diﬀer greatly
between divisions and aﬃliates, the guidelines and standards are applied
ﬂexibly according to their respective circumstances.

Compliance with Regional Regulations on
Chemical Substances across the Globe
We are promptly responding to progressive tightening ofregional regulations on chemical substances across the globe
The Sumitomo Electric Group has taken measures to replace
the substances listed in the EU RoHS＊ and ELV Directives＊, andis meeting customer demand for products that contain noprohibited substances. While four types of phthalates wereadded to the list of substances banned by the RoHS Directive,
we have completed activities aimed at the discontinuance of
their use in the products subject to the directive as part of an
initiative in the Action ECO-21 (Phase Ⅴ) Campaign. In the
future, we will make efforts to avoid use of the phthalates
newly added to the prohibited substances in the purchased

parts used for the products subject to the RoHS Directive.
At the same time, to comply with the REACH＊ regulation, weare preparing for final registration of the chemical substances
subject to this obligation, and completed the registration ofgallium arsenide (GaAs) in 2012. We are also making efforts toensure appropriate response to the requirements of the REACH
regulation including reporting of the SVHC＊ contained in
products.
In the meantime, to quickly respond to progressive tighteningof regional regulations on chemical substances across theglobe, we are working to collect information on regulations in
Europe, China and other countries and share the information
within the Group.

Product Safety (Product Liability)
We are striving for the improvement of the safety level throughpractical training and voluntary inspection with focus on the pursuitof product safety at the product development and design stages
Under the corporate principles of offering the very best goods
and services to satisfy customer needs and contributing tocreating a better society and environment, with a firm
awareness of our social responsibility, the Sumitomo ElectricGroup is making efforts to enhance the safety of products.
We adopt the basic approach that the products to be
introduced to the market should undergo thoroughexamination of safety, especially at the development anddesign stages.

《 Training on Product Safety 》
For product safety, we hold annual technical seminars on the
Product Liability Act and the revised Consumer Product Safety
Act through cooperation between the Quality Management
Division and the Legal Department.
The seminars are based on the idea that the safety standards
established by companies should also take into account thepredictable misuses. The content is designed to deepen the
trainees' understanding of the laws with reference to actual
cases, as well as to provide practical lessons on the issues
such as the review of product safety at the development anddesign stages, proper display of warning labels, maintenance of
product safety, collection of product safety information andresponse to accidents.

《 Voluntary Inspection on Product Safety 》
As part of the product safety initiatives, we conduct voluntary
inspection of the check items applied to the whole Group once
every two years in order to identify any product safety risks.
Based on the inspection, necessary measures are discussed
and implemented autonomously to strengthen the system topromote product safety measures.

C S R VO I C E

We will thoroughly control substances of environmental concern torespond to the conﬁdence of customers
Syuichi Nakayama Senior FPC Expert Engineer, Safety Standards Promotion Section, Quality Assurance Department, Sumitomo Electric Printed Circuits, Inc.
Sumitomo Electric Printed Circuits, Inc. engages in development, design and production of flexible printed circuits (FPC),
which are used in a wide range of electronic products. We at Safety Standards Promotion Section are in charge ofcontrolling substances of environmental concern contained in the products. Based on the inspection results on materials
and parts procured from suppliers, we check the conformity of our products to the green procurement standards specified
by customers and prepare reports on the results. We are experiencing progress in the modulation of our products,
increases in the number of the parts and materials used in the products and tightening of various chemical regulations in
Asian countries as well as Europe and the United States. Our duties will be more difficult and complicated in the future as
we have to control substances of environmental concern in consideration of the supply chain from a global perspective.
Still, we are sure that thorough implementation of such control allows us to earn the trust of customers.

Glossary ＊RoHS Directive

39 CSR Report 2015

RoHS stands for Restriction of the use of certain Hazardous
Substances. This EU Directive restricts the use of certain
hazardous substances in electrical and electronic equipment.

＊ELV Directive
ELV stands for End of Life Vehicles. This EU Directive restricts theuse of lead and three other hazardous heavy metals in automobiles
to reduce the impact of end-of-life vehicles on the environment.

We are working to improve logistics quality incooperation with contracted transportation companies

activities, aiming to eliminate critical office work mistakes andraise the office work efficiency. Specific activities are: (1)development and periodical review of relevant documents
such as company regulations, business rules and office work
instructions, (2) thorough implementation of measures toprevent recurrence of mistakes to reduce office work
mistakes, and the use of Hiyari-Hatto memos, or near-missreports, to prevent mistakes and (3) improvement of office
work efficiency by Kaizen at the office.
As an initiative to reduce office work mistakes, we reorganized
the rules for reporting such mistakes and taking measures toaddress them, and also revised the company-wide rules, toreplace the conventional activities in respective divisions withfocus on remedial measures by activities to autonomously
reduce office work mistakes by using the PDCA cycle on agroup-wide scale with focus on preventive measures . We will
also establish a framework to share information on themeasures for reduction of office work mistakes in an effective
For Kaizen at the office, we revised the criteria forcommendation of Kaizen activities so that initiatives for

Damage by a forklift

compliance and other defect prevention measures are valued
in addition to office work efficiency improvement that directly

50
60

contributes to the business results. Through these efforts, we

61will encourage everyone involved in office work to propose

17

49
22

0

2007

2008

38

36

39 36
25
12
19
2009

13
2010

Kaizen solutions.

36

28

22

19

22

14

19

14

2011

2012

2013

17
11
2014 （Fiscal year）

We also cover overseas affiliates inthe 360-degree survey for sales staff
Our Group's business activities consist mainly of■ Forklift basic operation competition in November in Osakabusiness-to-business transactions, and we therefore believe

Supply Chain(Note 1) Boundaries of data collection:Osaka Works, Itami Works and Yokohama
Works + 10 aﬃliates and AS Brake Systems, Inc.
(Note 2) Accident by other than a forklift mishandling,
insuﬃcient ﬁxation to the loading platform, water damage, misdelivery, etc.

Customer Satisfaction Improvement
Activities by the Sales Group

Products & Services

40

Core
Category

Accident by other than a forklift

80

20

and equally focuses on office work quality improvement

Group's CSR Activities

99

and office work quality are inseparable in business execution

Governance

100

The Sumitomo Electric Group believes that product quality

and efficient manner.

The Number of Accidents of
Products during Transportation by Year
（Accidents）

We will renew the initiatives to reduce office work mistakes
by replacing conventional activities with group-wide ones

Business Outline

The Sumitomo Electric Group is committed to the eliminationof transport accidents and the improvement of logistics quality
in concert with transport companies.
In comparison with the figures in fiscal 2013, we reduced
accidents caused by a forklift by three and accidents due toother causes by five. The total number of accidents decreased
by eight year on year to 28. Sumitomo Electric strives toprevent accidents including those resulting in injury based on
Forklift Safety Management Global Standard established by
the Safety and Environment Department. The content of thestandards includes improvement of maintenance of forklifts,
improvement on the skills of the drivers and maintenance andinspection of machines.
We also promote safety measures in the field of logistics,
including the installation of a seat belt and an overspeed
warning system to all of the forklifts used forloading/unloading of cargo in our sites.
In addition to the conventional forklift basic operationcompetition, which has been organized in Osaka and
Yokkaichi since the previous fiscal year, all Works
independently hold a forklift training session. We are also
making efforts to improve the logistics quality in cooperation
with transport companies.

Activities for Improvement of
Office Work Quality

Basis for Management

Improvement of Logistics Qualitythat the proper identification of the opinions and demands
further quality improvement of products and services will leadto greater customer satisfaction.
Based on this recognition, a 360-degree survey has been
conducted since fiscal 2002 for persons in charge of sales.
Specifically, the sales capabilities of the sales persons areto themselves, their superiors and clients (several companies).
The assessment results are fed back to the sales staff andtheir superiors to encourage the staff to enhance their sales
Performance test forforklift operation

capabilities. In addition, the overall results are used to review
the education and instruction methods.
Electric and its affiliates in Japan, the survey was launched inoverseas affiliates as well on a full-scale basis in fiscal 2013.
The survey results will be used to strengthen the whole Sales

Glossary ＊REACH regulations

REACH stands for Registration, Evaluation, Authorization and Restriction ofChemicals. Regulations of the European Parliament and of the Council for
protection of human health and the environment in the European Union.

Group in a way to respond to ongoing globalization and to
take measures aimed at improving customer satisfaction.

Social Contribution

While we have conducted a 360-degree survey in Sumitomo

Performance test forcheck-before-work

Environmental
Preservation

determined and assessed with a questionnaire administered

Human Resourcesfrom customers (companies) through daily sales activities and＊ＳＶＨＣ (Substances of Very High Concern)
SVHC stands for Substances of Very High Concern .Chemical
substances designated by the EU as substances which may
cause serious eﬀects to human health or the environment.

CSR Report 201540

〈 CSR Core Category 〉

Supply Chain〈 CSR Priority Theme 〉

Promotion of CSR Procurement
We are promoting CSR procurement
activities in response tomarket expansion.
The Sumitomo Electric Group currently recognizes
three dimensions of market expansion in relation tomaterial procurement: geographical expansion;
expansion of risk factors and other issues
concerning procurement activities; and expansionof procurement of materials for new businesses. To
respond to such expansion, we set promotion of
CSR procurement as a priority theme for VISION
2017 and seek to strengthen the trustfulrelationships with our suppliers according to thefollowing procedure.

① Check eﬀorts to perform CSR activities in thedomestic suppliers.
② Check eﬀorts to perform CSR activities inoverseas suppliers③ Introduce the CSR procurement mechanism
established as mentioned above into Group
companies.

Supply Chain
Basic Procurement Policies
We share our Basic Procurement Policies with main
suppliers and seek their understanding and cooperation
The Sumitomo Electric Group considers procurement to be aservice that supports the foundation of its business activities,
and in May 2006, established Basic Procurement Policies in linewith the Sumitomo Spirit and the Sumitomo Electric Group
Corporate Principles. We have distributed the Basic Procurement
Policies to our main suppliers, along with our Group companies,
and have sought their understanding and cooperation.

Basic Procurement Policies
1．Promoting procurement activities that contributeto creative and global corporate activities
The starting point of our social contribution is to conduct corporate
activities that provide excellent products and services that meetcustomer demands. In this recognition, we will promote procurement
activities that continuously sustain creative and global corporate
activities that enable us to oﬀer such products and services.

2．Promoting fair and impartial procurement activities
Through fair, impartial and open transactions on the basis of rational
processes and judgments, we will promote procurement activities
that support proper corporate activities.

3．Promoting compliance-based procurement activities
With cooperation from suppliers, we will promote procurement
activities on the basis of compliance with relevant laws andregulations, as well as social norms.

4．Promoting procurement activities based on
mutual trust and cooperation with suppliers
To realize our management philosophy, it is essential to establish
strong relationships of trust with suppliers. In promoting
procurement activities, we will therefore prioritize suppliers who
agree with our management philosophy.

5．Promoting procurement activities friendly to
the global environment

We aim to perform investigation activities
for CSR from the perspective of suppliers.

Environmental protection is a global challenge to be addressed. We
will promote procurement activities to support the provision of
products that can help customers in their eﬀorts toward
environmental protection, while helping us realize corporate
activities of low environmental impact.

Jun Miyajima
Planning and Administrative Group, Procurement Division

As an initiative to promote CSR
procurement, we conducted aquestionnaire survey with thecooperation of our major suppliers inJapan in ﬁscal 2014 as we did in theprevious ﬁscal year.

Group Procurement System
We are working to ensure thorough compliance with
our policies and enhance awareness amongprocurement staff on a global scale
Based on the Basic Procurement Policies, the procurement

customer demand, in my ﬁrst year withmeasures and activities of the Sumitomo Electric Group aredeveloped under the initiative of the Group Procurement
Collaboration Oﬃce, which is an organization established in
the Procurement Division and composed of the staﬀ in charge

Sumitomo Electric although I did notof procurement in 23 divisions and group companies.

understand CSR suﬃciently. The job

Speciﬁcally, the oﬃce members work together to promote VA＊(value analysis) activities and provide education to enhancecompliance related to procurement and improve procurement
skills. An e-mail magazine is also distributed to more than 400

I was assigned to this important job,which is conducted to meet social andmade me learn many things.
I recognized the diversity of the suppliers of Sumitomo
Electric in terms of delivered item, business form and size,
as well as diﬀerences in their approach to CSR.
In ﬁscal 2014, we made proposals on how the suppliers
should address CSR based on the results of thequestionnaire survey, with particular focus on the item ofcompliance. We will consider the situation of eachsupplier more closely to make more appropriate
proposals in ﬁscal 2015 and beyond. We also plan toexpand the questionnaire survey by seeking cooperationof Group companies from ﬁscal 2015.

procurement staﬀ to share information on procurement
throughout the Group.
Overseas, we organize meetings of liaison committees ofprocurement staﬀ on a regional basis under the initiative of theinternational procurement oﬃces of the Procurement Division.
Through the liaison committees of procurement staﬀ work, we
ensure implementation of the Basic Procurement Policies bydeveloping measures on procurement across the Group andtraining of the staﬀ in charge.

Glossary ＊value analysis (VA)

41 CSR Report 2015

VA is conducted to replace "Material X" with cheaper "Material Y"
that still provides the quality required for the product.

We also ask our suppliers to comply with the
CSR Procurement Guidelines by specifying compliancewith them in the basic transaction agreement

1. Provision of Useful and Safe Products and Services
2. Improvement of Technological Capabilities
3. Promotion of Sound Business Management
4. Contribution to Preservation of
the Global Environment

6. Social Contribution and Elimination of Antisocial Forces(Including Response to the Issue of Conﬂict Minerals)

8. Disclosure of Information and Promotion ofCommunication with Society
9. Maintenance of Conﬁdentiality and Information Security

Web

Although the quality of overseas products has recently been
improved, there are still some overseas manufacturers that change
raw materials or suspend production without prior notice. We also
consider that purchase of domestic products serves the national
interest of Japan even though it might be a small contribution. As
our products play a role in improving the quality of power andoptical fiber cables, we prefer procurement of products
manufactured by domestic suppliers that use the electricity andcommunications networks in Japan, in which such cables are
employed.

② Availability of raw materials in inventory
However, even if products are made in Japan, their raw materials
are produced by processing overseas resources in Japan. A problem
in the country of origin may affect stable supply of the materials. We
therefore identify all of the countries that supply the resources usedin the raw materials of the products for which we receive orders
regularly. In case of an emergency in any of such countries, wecommunicate with the Japanese manufacturers of the materials
using resources from the country to check whether the materials
can be supplied in a stable manner or not.
As our original initiative, we thoroughly forecast risks before
selection of raw materials, pick out the safest materials for ourcustomers and maintain an inventory of six months on average forthe materials of continuously manufactured products. Needless tosay, the selected materials will not be changed without priorapproval of the customers.
During the 52 years since our establishment, we faced various
human and structural problems ranging from natural disasters suchas the Great Hanshin Earthquake and the Great East Japan
Earthquake to strikes in overseas mines and plant outage in material
manufacturers. We are proud that we have continued to supply our
products in a stable manner without any suspension due to ourefforts including the initiatives mentioned above. I hope that we cancontinue to have a good business relationship with Sumitomo
Electric.

http://global-sei.com/csr/guideline/

CSR Report 2015

Social Contribution※ Please see the following page for details.

① Preference for Made in Japan

Environmental
Preservation

For promotion of CSR procurement, in addition to activities todisseminate the guidelines in the supply chain, we need tomonitor the dissemination of the guidelines. To this end, we
conduct a questionnaire survey of suppliers.While
Procurement Division conducted the survey for monitoring of
122 companies among our suppliers in ﬁscal 2013, thesurvey was expanded and applied to 830 suppliers in ﬁscal
2014. The response rate reached 98% thanks to thecooperation of the suppliers, which enabled us to check theircommitment to CSR procurement. After collecting thequestionnaires, we separately informed the suppliers of theresults and asked some of them to take more active
measures. As mentioned above in the procedure ofpromoting the CSR priority theme, we plan to introduce thisinitiative into the supply chain of our group companies inJapan and overseas.

Firstly, I would like to express my gratitude
for the continued patronage of Sumitomo
Electric. Fukuoka Cloth Industry
manufactures and supplies various tapes
used for cables with safety as a slogan for
CSR activities. Under this slogan, we are committed to not only
occupational safety and health but also thorough safety in business
management, which we believe allows us to supply safe and secure
products in a stable manner and thereby contribute to society andfulfill our social responsibility. Specifically, we select materials basedon the following two principles.

Human Resources

We check the progress of suppliers in their activities
for the CSR Procurement Guidelines, and work forfurther dissemination and establishment among themPresident, Fukuoka Cloth Industry Co., Ltd.

Supply Chain

Monitoring of CSR Procurement

Mr. Ken Amaoka

Products & Services

7. Respect to Human Rights and Considerations ofOccupational Health and Safety

Safety is a slogan for
CSR activities

Core
Category

5. Compliance with Laws and Social Norms andFair and Proper Business Activities

C S R VO I C EGroup's CSR Activities

The Sumitomo Electric Group aims to contribute to creating abetter society and environment, with a ﬁrm awareness of oursocial responsibility. To this end, the suppliers that directly or
indirectly provide their products and services for us are also
required to work on the activities together with us. Therefore, wehave summarized our requests to the suppliers of the Sumitomo
Electric Group in these guidelines, and the suppliers are requested
to promote compliance with them. Our suppliers are also asked
to request their suppliers to comply with the guidelines.

To promote environment-friendly procurement activities, theSumitomo Electric Group has made eﬀorts to eliminate theuse of banned substances in its products and enhancecontrol of other harmful substances contained in products,
based on the Sumitomo Electric Group Green Procurement
Guidelines since ﬁscal 2003. In ﬁscal 2012, the task
committee in which Procurement Division also participates
revised the guidelines to issue SEI Guidelines for Green
Quality Purchases as a new version. We consider theguidelines as part of essential quality standards and use themto maintain green procurement activities.

Governance

Sumitomo Electric GroupCSR Procurement Guidelines (extracted)※

We are committed to green procurement as
an essential quality factor

Business Outline

To promote our commitment to CSR in the procurement
activities, we established the Sumitomo Electric Group CSR
Procurement Guidelines based on the Sumitomo ElectricGroup Corporate Principles and Charter of Corporate
Behavior in August 2010. The guidelines were revised torespond to the issue of conﬂict minerals in ﬁscal 2014. To
enhance promotion of the guidelines, we also ask suppliers
to take proper action by specifying relevant requirements inthe basic transaction agreement.

Contribution to Preservation of
the Global Environment

Basis for Management

Commitment to CSR Procurement42Response to the Issue of Conflict Minerals

Organization of Partners' Meetings

We recognize this issue as a major social challenge andaim to eliminate conflict minerals from our businessApprox. 120 suppliers participated inPartners' Meetings

The Sumitomo Electric Group, which is

Promoting

The Sumitomo Electric Group organizes Partners' Meetings tocompliance-based procurement activities as stated in theenhance its relationships with suppliers. The meetings, in

Basic Procurement Policies, recognizes that the matter ofwhich we explain the outline of our business activities andconﬂict minerals※ from Congo and its neighboring countries

procurement policies and commend the suppliers that haveis a serious social issue in the supply chain. To fulﬁl our social

proposed and practiced good value analysis (VA) activities,

responsibility in procurement activities, we aim to procure orplay a major role in the establishment of amicable anduse no conﬂict minerals involving any illegal or dishonest acts

cooperative relationships with suppliers. At the meetings, we

as raw materials. To this end, we investigate the supply chain

also present the CSR Procurement Guidelines, as well ason the use of conﬂict minerals when necessary. In the event

procurement policies, to ask for their cooperation andthat the use of minerals that may cause a social problem or

promote the guidelines actively.

serve as fund for armed groups is found, we will take

To help overseas suppliers establish CSR procurement asmeasures to avoid their use.

well, we present the guidelines at Partners' Meetings andIn accordance with the principle of Promoting procurement

reverse exhibition/negotiation meetings＊.

activities based on mutual trust and cooperation with

In addition to the group-wide Partners' Meetings, our Works

suppliers in the Basic Procurement Policies, we will ask

and divisions also hold such meetings individually.

suppliers to understand the approach of the Sumitomo
Electric Group and cooperate with our investigation
mentioned above. In case that the use of minerals of concern
is found, the relevant suppliers will be requested to takemeasures to avoid their use as we do in the Group.
※Armed groups that are involved in serious violations of human rights obtainfunding from trading of tantalum, tungsten, tin, gold and their derivatives
produced in the Democratic Republic of the Congo and its neighboring
countries.

Response with Business Continuity Plan (BCP)
Our efforts to strengthen the system forstable procurement are producing steady results
As part of our initiatives to ensure stable supply of products
and services, we are committed to the development andimplementation of a business continuity plan (BCP) for
procurement divisions, which prepares for large-scale
earthquakes and other emergency situations. The BCP
assumes a situation that the suppliers of our parts andmaterials have suﬀered damage from an earthquake andsuspension of their supply has caused direct impact on our
production. To minimize such impact and secure stablesupply, we have examined alternative suppliers and products,
in addition to replacement with commodity items. We arealso developing a communication network with suppliers toensure that we can know the impact of disaster in a shorttime, and collecting information on production and logistics
bases so that we can ﬁnd any sites where we canPartners' Meetings

manufacture or store the products in the aﬀected area at thetime of disaster.
In ﬁscal 2014, we had fears of a supply shortfall when some
suppliers suspended their operations due to ﬁre andexplosion accidents. Nevertheless, we were able to procurematerials without large impact on our production due to theprior examination of alternative products in theabove-mentioned activities, along with the cooperation of our
suppliers. These incidents reminded us of the signiﬁcance ofsuch activities.
We will maintain these activities to strengthen our
procurement system that can supply products and services ina stable manner.

Reverse exhibition/negotiation meeting in Indonesia

Glossary ＊Reverse exhibition/negotiation meeting

43 CSR Report 2015

A trade fair to exhibit items used in the Sumitomo Electric Group and ask
suppliers to propose better alternatives in terms of quality, cost and deliveryWe will promote compliance inprocurement through thorough inspection and training

Education System
We organize training seminars in Japan and overseas
to improve procurement skills
For the purposes of development of reliable procurementstaﬀ and handing down of procurement ethics, knowledge

procurement must pay special attention to complying withand expertise, the Procurement Division has developed andthe Act against Delay in Payment of Subcontract Proceeds,

provided an OFF-JT＊ program for working staﬀ, which is

etc. to Subcontractors (Subcontract Act), as well as relevant

combined with existing OJT＊ to create a synergistic eﬀect

laws on internal control, and to making appropriate paymentthat will improve procurement skills.

of customs duties on items we import directly from overseas.

The OFF-JT program in ﬁscal 2014 was composed of 7

In ﬁscal 2014, Sumitomo Electric also organized group-wide

courses including procurement-related laws and regulations

training seminars to ensure full compliance with the laws.

andCSR, environment and ethics,

Business Outline

In our eﬀorts toward compliance, the divisions involved in

Basis for Management

Initiatives to Ensure Compliance withLaws Related to Procurement

each of which wasprovided by an expert in the Procurement Division. The
experts used textbooks they prepared, and gave lectures

Subcontract Act

Training
seminars

Customs Law

20 sites in Japan

Details

3 courses: a basic/beginner course, a course
designed for sections in charge of making contracts
and a course designed for sections in charge ofpurchase requests and acceptance inspections

lectures.
Aside from these initiatives, we organized a training program
to develop key personnel on the Subcontract Act, andprovided a certiﬁcate for 18 persons who completed the2,551 in total

Participants※

through the teleconference system connected to sites inJapan and overseas. In total, 263 persons attended the

Locations21 divisions + 47 aﬃliates

25 divisions

program. This program develops core personnel for the

Inspection tour

2 divisions + 10 aﬃliates

25 divisions

establishment of an autonomous system to comply with theact in each division and company because the Subcontract※Excluding participants in video training

We have increased the number of the training sessions toensure compliance with relevant laws. In addition, inspection
tours have been organized to further ensure compliance with
relevant laws such as the Subcontract Act and the Customs
Act based on self-examinations and other initiatives taken byseminars and inspection tours to promote compliance.
With respect to custom-related laws, we underwent acustom reports and storage of conﬁrmation documents bycustom inspectors in February 2015.
We will continue to promote proper importing by enhancing

Overseas, we hold liaison committee meetings in the regions
where our group companies and aﬃliates are concentrated.
The meetings are attended by staﬀ in charge of procurementof our aﬃliates in the respective regions, who are provided
with training seminars concerning procurement.
In the future, we will organize training seminars regularly tofurther disseminate the Basic Procurement Policies andconsider providing such seminars at more sites.
Results of Education

our education and inspection activities.

Date

No. ofparticipants(total)No. ofcompanies

7

27

149※

24

2nd half of FY2014

7

28

114※

20

2nd half of FY2014

1

5

20

15

1st half of FY2014

3

3

42

25

2nd half of FY2014

2

2

34

19

(Persons)

3,000

2,551※
2,006

2,000
1,500

Training seminars
at overseas
liaison committee
meetings ofprocurement staﬀ

1,329

1,193
861

1,000

Key personnel
development
program

500
0

2010

2011

2012

2013

2014

(Fiscal year)※Number of those who passed the ﬁnal exam

※Excluding participants in video training

Human Resources

1st half of FY2014

Supply Chain

OFF-JT
Education
programNumber of Participants in
Procurement Compliance Training Seminars by Year

No. ofNo. ofcourses lectures

Products & Services

post-entry audit regarding correctness of the amounts instaﬀ but also to manufacturing and development staﬀ.

Core
Category

the divisions. We will continue to organize periodical training

Act has to be made known widely not only to procurement

Group's CSR Activities

Self-examination

2,500

Governance

Results of training and inspection

Environmental
Preservation
Social Contribution

Key personnel development program

Procurement compliance training seminar

Glossary ＊OJT and OFF-JT
OJT (On-the-Job Training) is education and training received while the trainees perform daily work. On the other hand, trainees
receive OFF-JT (OFF the Job Training), such as group training sessions, when they are temporarily away from daily work.

CSR Report 201544

〈 CSR Core Category 〉

Diversity

Human Resources〈 CSR Priority Theme 〉

Promotion of diversity
Removing various barriers, we will
accelerate the globalization of
our human resources and organization.
The Sumitomo Electric Group operates with morethan 200,000 employees at approximately 390
companies located in roughly 40 countries all over
the world. We have started to actively promote
globalization of the human resources employed inGroup companies in Japan and overseas. We
believe that globalization is not only a part of the
CSR activities but also a business strategy tomaintain market competitiveness.

Global HRM Policy
We are actively promoting the establishment of
HR systems and guidelines to be commonly applied
on a global scale within the GroupIn the Sumitomo Electric Group, over 200,000 employees areworking actively in about 40 countries around the world. We
believe that for Sumitomo Electric to win the global
competition and grow further, it is essential that we fully
mobilize the Group's technologies, products, business models
and all other resources, and we acknowledge that it is mostimportant to secure and utilize highly capable employees
who support the efforts.
The Group has traditionally attached a high value to humanresources based on the Sumitomo Spirit. To clarify the basic
policies on human resources, we instituted the Sumitomo
Electric Group Global Human Resource Management Policy(Global HRM Policy) in September 2011. This policy specifies
the Group's commitment to creation of an environment thathelps employees realize growth and self-actualization through① Introduce a new HR system to show career
opportunities within the Sumitomo ElectricGroup beyond individual companies.

work, provision of various career opportunities regardless of② Develop an institutional framework to identify
executives in group companies as Global Executives.

accelerate our global human resource recruitment and③ Develop common guidelines for bothinternational and inter-ﬁrm mobility.

nationality, race, ethnicity, religion, age or gender, promotionof diversity and development of global leaders, in order topromotion. We have declared the policy to inform people inand outside of the Group about it.

Global Human Resource Management(HRM) Policy

We strive to place the right person for
the right position by diverse human resources
and aim to further strengthen
the global competitiveness.

●

We provide workplaces where all the employees canwork actively, grow both personally and professionallythrough work, achieve self-actualization, andcontribute to society.

●We oﬀer various career opportunities andpursue globally the right person in the right position
regardless of nationality, race, ethnicity, religion, age
or gender.

●

We value and promote diversity in the workplacein order to enhance the creativity of the organization andto sustain the growth of the business.

●

We develop global leaders who lead and give energy
to our global business. Global leaders arethose who understand and share the Sumitomo Spirit
and the Corporate Principles and can lead highly
diversiﬁed teams.

Mr. Pavee Suvagondha
Human Resources Manager Sumitomo Electric U.S.A. Holdings, Inc.

I am based in NY and I supervise Human
Resources Centers of the North & SouthAmerica region (U.S., Mexico, Brazil, andCanada).
I am promoting Global HRM policy inUnited States and we are trying toestablish the human resources systems
and mechanisms where diverse andtalented human resources can be fully
exploited.

To materialize the policy and narrow the gap between the

I continue to hold discussions with

ideal and reality, we will continue to promote concretegroup companies' senior managers andmeasures such as the establishment of HR systems to be

human resources managers every year on HR matters andcommonly applied on a global scale, as well as preparation

we strive to bring solutions to the challenges faced by theof guidelines.

each group company and to enhance their capacity to
manage human resources.
In order to attract and retain more talents for our group, I
will put my eﬀorts to standardize employees' beneﬁts andto further improve training and development systems
across group companies. We aim to place the right
person for the right position for our global humanresources regardless of nationality, ethnic origin, age andgender, and by so doing, I wish to contribute tostrengthen our group's global competitiveness.

45 CSR Report 2015

We are using various media to disseminate
the policy and promote communication《 Website to Disseminate the Policy 》
In April 2012, Sumitomo Electric launched a website tocomponents of the Global HRM Policy, as well as theactivities of our Group employees who are playing an activerole in the world.
The content of this website ranges from human resource

We introduced the Global Grade System andthe Group Global Executive Personnel System on
April 1, 2014 to further promote the realization of
the Global HRM Policy

Purposes of the Systems(extracted from a notice distributed at the time of introduction)●

This Global Grade System is applied commonly across theGroup. As the ﬁrst step, we introduced a grade called GL(Global Leader) on April 1, 2014, and appointed board
members and equivalents from overseas subsidiaries, otherthan those of listed companies, as the GL grade.

●

These executive personnel at the GL grade were thenrecognized as Group Global Executive Personnel. Sumitomo
Electric's Head Oﬃce is in charge of management anddecision-making regarding their treatment. The personnel will
be provided with a wide range of career opportunities to help
them play more active roles as global leaders.

●

We plan to create more grades in the Global Grade System toidentify more excellent human resources in the Group. While
promoting training and development programs as well asplacement and appointment beyond the boundaries of individualcompanies, we will seek to oﬀer various career opportunities.

development programs in the Sumitomo Electric Group andcomments from the participants in the programs, to various
careers realized by our employees, communication activities
promoted around the world and our efforts to contribute to
local communities.
Web(In Japanese) http://www.sei.co.jp/ghrm/（ I n E n g l i s h ）http://global-sei.com/ghrm/（In Chinese）http://global-sei.cn/ghrm/《 Group Global Magazine ALL SEI 》
In February 2014, the Sumitomo Electric Group's bulletins,
which used to be published separately in Japan andoverseas, were integrated into ALL SEI. This new periodical
is commonly published across the Group as a communication
tool for Group employees both in Japan and overseas.
ALL SEI conveys the Sumitomo Spirit, the Sumitomo ElectricGroup Corporate Principles, messages from executives andinformation on our business and social contribution activities

Sumitomo Electric Group Executives

in various regions, in order to share information and cultivate

GlobalGradea sense of unity among Group employees.
executives,

Group Global Executive

who work

Business Unit /Regionactively in various parts ofBusiness Unit /RegionGL

the world, have been
ExecutiveClass

published since the Autumn

Transfer

Transfer

Transfer

introduce specific examples

Sumitomo Electric Group inorder to further enhance a

Transfer

Domestic aﬃliate

Transfer
Transfer

Sumitomo Electric

Human Resources

sense of unity among Group

Transfer

Cultivated andappointed
under the systemof each company

opportunities in theTransfer
Cultivated andappointed
under the systemof each company

Cultivated andappointed
under the systemof each companyof self-realization and career

ExecutiveClass

Supply Chain

2011 issue. The articles

GeneralManager

Overseas aﬃliate

employees as well as theirmotivation.
ALL SEI

Transfer

Numbers as of March 31 of each ﬁscal year

No. of employees (persons)

250,000

200,000

Fiscal year

2006

2007

2008

2009

2010

2011

2012

2013

2014

Americas18,201

23,962

15,744

13,852

15,164

19,712

24,27329,47034,828Europe/Africa

27,634

31,406

32,667

33,834

41,23047,73547,64454,24556,477

Southeast Asia

25,76627,167

34,792

34,31037,53843,00049,86856,40858,278

China

29,36734,93933,80837,84351,887

46,78847,39047,64652,32335,53637,36436,95437,49937,14837,71538,892

Environmental
Preservation

Number of Group Employees in the World by Year

Products & Services

Interviews with our global

Core
Category

information on our business performance, as well asGroup's CSR Activities

Sumitomo Electric has adopted a personnel system thatallows talented and qualiﬁed persons to seek careerdevelopment in a business unit or on a regional basis beyond
the borders of individual companies to engage inmanagement of group companies in Japan and overseas or
perform even higher duties.

Governance●Business Outline

inform readers in and outside of the Group about the specific

Global Grade System andGroup Global Executive Personnel System

Basis for Management

Dissemination of the Global HRM Policy

150,000

50,00002006 2007 2008 2009 2010 2011 2012 2013 2014

(Fiscal
year)

Japan

32,885

Total

133,853 153,725 152,547 157,203 182,773 194,734 206,323 225,484 240,798

36,251Social Contribution

100,000※ Sumitomo Electric and its consolidated subsidiaries

CSR Report 201546

Diversity in Recruitment

Organization of Town Meetings

We aim to promote diversity through recruitment ofa wide range of personnel

Employees are provided with opportunities tohave direct dialogue with executives

In ﬁscal 2014, Sumitomo Electric employed 141 new
graduates for main career track in Japan, 21 of whom werefemale and 4 were overseas students. We also hired 62
mid-career employees. To support the development of ourvarious business activities including those in new ﬁelds andglobal markets, we continue to actively recruit women,
foreign students, mid-career employees and other diverse
personnel.

As an initiative to enhance communication inside thecompany, we organize town meetings, in which a group of
employees in speciﬁc functions from diﬀerent divisions
directly talk with executives (board members and generalmanagers). The participants have precious opportunities toinform the executives of problems and requests concerning
operation of the workplace and human resource
development, as well as those speciﬁc to their functions, andshare such problems to seek clues and solve them. The
meetings also help the participants create networks with
employees in other divisions.
We organized the town meetings as listed below during ﬁscal
2014.

Number of Male/Female Employees Hired by
Sumitomo Electric (All Functions)(Persons)

Female

350

314
49

300
250
200
150

265

100

281
43

51

Foreman Town Meeting

245

238

232

207

175

50

268
36

258
51

220
45

Male

296

0

2009

2010

2011

2012

2013

Ratio of Male/Female Employees andRatio of Male/Female Managers
FemaleFemale1,337

102

persons

2014(Fiscal year)

As of March 31, 2015

persons

12.0％

Total number of
Sumitomo Electric
employees:

11,098

2.9％
Male

Male

9,761

3,553

3,451

persons

persons

88.0％

97.1％
Ratio of male/female
managers

48

50
40
35
30

25

25
20
15

52

29

33 33

36
China
Taiwan18

Malaysia

11

Iran
India
Korea

10
5

40
2
2
1
1
1

SwedenNepal
FranceVietnam
Morocco

1
1
1
1
1

0

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

(Fiscal year)(Note) Above graphs cover personnel data for Sumitomo Electric employees,
including those on loan to Sumitomo Electric aﬃliates and other organizations.

C S R VO I C EApprox. 9 to 15 persons each time (46 persons in total)

Main Career Track Town Meeting
Applicable
employees

Employees from main career track to assistant managers

No. ofmeetings

Once in Tokyo Head Oﬃce, Osaka, and Itami each (3 times in total)

No. ofparticipants

9 in Tokyo Head Oﬃce, 11 in Osaka, and 12 in Itami (32 persons in total)

Applicable
employees

Main career track employees and managers with various nationalities

No. ofmeetings

Once in Osaka Head Oﬃce and Kanto each (2 times in total)

No. ofparticipants

9 in Osaka Head Oﬃce, 5 in Kanto (14 persons in total)

Applicable
employees

Female employees from general staﬀ toassistant managers promoted from general track

No. ofmeetings

Once in Osaka Head Oﬃce and Tokyo Head Oﬃce each (2 times in total)

No. ofparticipants

6 in Osaka Head Oﬃce, 11 in Tokyo Head Oﬃce (17 persons in total)

Manager Town Meeting

41

45

Once in Osaka, Itami, Yokohama and Kanto each (4 times in total)

No. ofparticipants

General Track Town Meeting

Number of Employees Working for Sumitomo Electric
Who Were International Students
As of March 31 of each ﬁscal(Persons)
55

Section chiefs and deputy section chiefs

No. ofmeetings

Employees With Various Nationalities Town Meeting
Total number ofmanagers in
Sumitomo Electric:

Ratio of male/female
employees

Applicable
employees

Applicable
employees

Administrative members

No. ofmeetings

Once in Osaka Head Oﬃce, Tokyo Head Oﬃce,
Chubu District Oﬃce, Osaka, and Yokohama each (5 times in total)

No. ofparticipants

Approx. 10 to 13 persons each time (60 persons in total)

The opinions presented in the town meetings arecommunicated to the relevant divisions on a timely basis andused for organizational operation and planning of personnel
systems.

I participated in the town meeting for employees with various nationalities
Hu Yinda

Automated Production Machine Development Group, 2nd Plant Engineering Department, Plant & Production Systems Engineering Division

After participating in the town meeting, I realized that the scenes of employees of various nationalities working
together in the same workplace comfortably, which I used to think were nothing special, actually required aconsiderable amount of harmony in the company and understanding of employees.
During the meeting, I was relieved with comments of senior colleagues that job performance or establishment of
personal relationships has nothing to do with nationality but tolerance to cultural gaps is required. On the other
hand, various problems due to nationality in our work and personal life were also introduced with various comments
ranging from simple questions like why do we have to wear a hat when walking in a production site? to real-life
issues like it is difficult to find a guarantor for renting a house. I felt that there were still challenges to be solved inorder to establish cultural diversity and cooperative environment.
To realize diversity in the future, it will be essential to give support to non-Japanese employees, as well as other
employees with various problems. I hope that Sumitomo Electric has a wide range of personnel and an even more
harmonic environment.

47 CSR Report 2015

We aim to be a company where diverse talents candemonstrate their capabilities regardless ofnationality, race, gender or age

buffer materials for packaging, Sumiden Friend has expanded
its operations gradually to also engage in conversion ofdrawings and other paper documents into electronic files andshredding and recycling of waste paper.
We established Yokohama Branch in 2013, Tokyo Branch in2014 and Osaka Branch in April 2015. Currently, 55

important posts including top management, especially in theemployees are working at the company, including 33 persons

United States and European countries. The momentum towith disabilities.

assist women in playing more active roles is also increasing in
the Japanese society, as exemplified by the specific targets
for promotion of women's advancement set by the Japanese
Government. Sumitomo Electric is also committed toBusiness Outline

In the globalized modern society, many women holdBasis for Management

Utilization of Diverse Talents

enhanced recruitment of women, active promotion of female
employees and encouragement of them to keep working for
Governancethe company. These efforts are aimed not only at fulfillingsocial responsibility but also at recruiting excellent humanresources regardless of gender and promoting marketing andnew businesses from a multilateral perspective.
To ensure that diverse talents can demonstrate theircapabilities regardless of nationality, race, gender, age or

Sumiden Friend (Itami)other background in the Group, we will continuously work topromote training and development programs, deployment
and offer various career opportunities.

The disabled

Promotion of Employment of the Persons
with Physical or Mental Disabilities

Sumitomo Electric has been traditionally working to promote
employment of persons with physical disabilities. To further

20

28

2.0

2015

33
(Persons)

Employment rate as ofJune 15 of each year

2.17
2.11

2.1

2.01

2.02

2.00

2.05

Legallyrequired
percentage

1.91
1.8
1.7
0

2009

2010

2011

2012

2013

2014

2015

(Year)

Special-purpose Subsidiary Group＊

Supply Chain

maintenance of the ornamental plants and production of

12

（％）
2.2

established a special subsidiary, Sumiden Friend, Ltd., on the(certified in February 2009). Beginning with loan and

12

Employment Rate of the Physically or
Mentally Disabled by Year

1.9

employment of persons with disabilities in July 20082014

Employment rate as of June 15 of each year

disabilities and increase their employment rate, we
premises of Sumitomo Electric's Itami Works, specifically for

2013

Products & Services

promote employment of persons with physical or mental

2012

Core
Category

We are making steady efforts to help create a society
where anyone can work vividly whether they
have disabilities or not

2011

Group's CSR Activities

Number of Employees with Disabilities at Sumiden Friend by Yearand promotion beyond the borders of individual companies

Human Resources
Environmental
Preservation
Social Contribution

Glossary ＊Special-purpose Subsidiary Group
Under this system, the percentage of employees with disabilities can be calculated for a corporate group as a whole
including the parent company having special subsidiaries as well as related subsidiaries, subject to certain requirements.

CSR Report 201548

Human Resource Development
Personnel to be Developed
Sumitomo Electric deﬁnes personnel to be developed as
personnel who honor the Sumitomo Spirit, understandmanagement policies, possess high levels of skill andprovided through e-learning, video lectures and other tools.
The number of the Sumitomo Electric Group employees who
participated in the training programs (sum of participants ineach program) in ﬁscal 2014 was roughly 60,000, and the total
length of training was about 360,000 hours.

knowledge rooted ﬁrmly in the basics, and can play activeroles in the global community.

Total length of training（Hours）

Basic Concept of Human Resource Development

400,000● Human resource development according to the corporate

philosophy and management strategy
employee motivationand instruction by and dialogues with superiors in theworkplace supported by training in each division andGroup-wide training

300,000● Human resource development based on

Self-development
Instruction by and dialogues with superiors
Specialty training ineach division

200,000

279,683

259,701

61,88068,01866,489259,857

100,000

57,8248,322Group-wide training
Training by the Human Resources
Development Dept. / Training by
Corporate Staﬀ Group

278,623
253,660

0

2010

16,933

15,3182011

2012

Sumitomo Electric employees

17,366
2013

62,66440,9632014 （Fiscal year）

Employees of domestic aﬃliates

Employees of overseas aﬃliates

SEI University
We have established a system toprovide various training programs toraise the human resource value of employees
SEI University represents the Sumitomo Electric Group's(Note)The training seminars provided by Sumitomo Electric or registered in the training
management system are counted in the ﬁgures for domestic and overseas aﬃliates.

Total number of participants（Persons）

60,00050,000comprehensive training and education system. With the aimof becoming a Glorious Excellent Company, the entire Groupis developing various training programs at SEI University to

36,41040,00032,53730,000familiarize the entire Group with the Sumitomo Spirit and theSumitomo Electric Group Corporate Principles, develop a
corporate culture to cultivate persons and nurture human

20,000Fundamental Principles of SEI University
SEI University will serve as a venue for:① Disseminating the Sumitomo Electric Group's corporate philosophy,② Sharing the Sumitomo Electric Group's management strategies
and vision, and③ Developing employees' abilities, skills and knowledge so thatthey may play active roles in the global community.

Training Programs at SEI University
Roughly 380 programs were conducted in fiscal 2014
Sumitomo Electric provides various training programs for awide range of positions from executives to newly hired
employees. Including position-based (compulsory) training forthe employees in speciﬁc positions or involved in speciﬁc
operations as well as optional training available for applicants
depending on their operational needs, approximately 380
training programs were oﬀered in ﬁscal 2014. Training is also
provided to teach necessary skills and knowledge in eachdivision, including daily on-the-job training (OJT) centering on
management by objectives.
The ﬁve basic subjects of (1) Sumitomo Spirit, Corporate
Principles and CSR, (2) Management policies and visions, (3)Compliance, (4) Safety, environment and quality and (5)Diversity constitute the compulsory training for all employees.
This training is incorporated into various training programs and

49 CSR Report 2015

21,282
15,98910,000resources who aggressively venture into the international
arena and can demonstrate their capabilities there.

26,59625,595

0

8,728
1,800
2010

13,448

11,209
2,643
2011

3,064
2012

Sumitomo Electric employees

15,398
2,908
2013

7,300
2014 （Fiscal year）

Employees of domestic aﬃliates

Employees of overseas aﬃliates(Note)The training seminars provided by Sumitomo Electric or registered in the training
management system are counted in the ﬁgures for domestic and overseas aﬃliates.

《 Cultivation of Manufacturing Personnel 》
The Sumitomo Electric Group provides training programs tocultivate manufacturing personnel based on the basic
concept that manufacturing is human resource
development through the three main initiatives of (1) basic
training on manufacturing, (2) practical training and (3) group
activities.
① Basic training on manufacturing
The underlying concept is to learn with actual machines andproducts based on principles through all five of their senses.
Designed to deal with the latest technologies, the curriculums
are wide ranging from training on subjects essential for
manufacturing, such as safety, environment, quality,
improvement and shop-ﬂoor management, to professionalcourses on the Group's proprietary technologies and techniquesand equipment control and maintenance technologies. These
programs are systematically organized under the categories of
position-based training, nomination-based training andoptional training and provided at the Faculty of Manufacturing
Technology of the SEI University in a planned manner. The
number of the participants is growing every year, and the targetof 13,500 person-days during ﬁscal 2014 was achieved byaccommodating 13,546 person-days.

29

20

16

15

2013

2014

18

10
5

6

0

2010

2011

2012

（Fiscal year）(Note)The data cover the employees of Sumitomo Electric and Group companies inJapan who used the cross-border trainee program of Sumitomo Electric.

Improvement of Management Capabilities
We are committed to development of leadership and improvementof team management capabilities through a coaching program

Human Resources
Environmental
Preservation
Social Contribution

In fiscal 2014, a new training program was established for theemployees who have been newly appointed as members ofthe management. The two-day overnight program was held
six times during the fiscal year to train a total of 123
participants, who engaged in active discussions. In addition,
an existing pre-assignment coaching program to train theemployees scheduled to be assigned overseas has been
expanded to coaching sessions for group managers andequivalents in Japan. The program is showing positive resultsin development of leadership and motivation of subordinates.
Based on the idea that members of the management need anunderstanding about diversity, we adopted a curriculum on
diversity in the annual training program for newly promoted
personnel. Although there was a time restriction, theunderstanding was disseminated to a certain extent, which
was demonstrated by many positive comments in thequestionnaire on the program (e.g. I was able to clearlyrecognize the significance and function of diversity ). We willcontinue to conduct these initiatives.

Supply Chain

At present, the number of the overseas sites of the Sumitomo
Electric Group far exceeds that of the Japanese sites, which
symbolizes ongoing globalization of our business. In such acontext, for the growth of the Group as a whole, it is crucial
that all employees including those who work at our overseas
affiliates share the Sumitomo Spirit, the basic philosophy of
the Group, as the foundation for their operations.
We are encouraging young employees to actively participate
in our cross-border trainee program and have opportunities
to learn and grow in different cultures across national
borders. Twenty nine employees used this program in fiscal
2014. In the business English training course launched inﬁscal 2012, 348 persons received lessons to improve theirEnglish conversation skills during ﬁscal 2014.
Overseas, to promote training programs at SEI University on a
global scale, we have established the Human Resources
Development Committee on a country basis, which aims totake measures to develop personnel, mainly national staff,

29

25

Products & Services

We actively promote dissemination of theSumitomo Spirit in our affiliates including overseas ones

30

Core
Category

Addressing Globalization

35

Group's CSR Activities

In the future, we will set up Monozukuri Training
Subcommittee under the Monozukuri Strengthening
Committee, which was established in April 2015, to further
enhance our manufacturing training programs. Composedof representatives from manufacturing departments of
the Group companies, the subcommittee will develop
the ideas of the Corporate Staff Group that plansmanufacturing training programs, while widely accepting
opinions of divisions and cooperating with them, to pursue
the ideal state.

Number of the cross-border trainees sent from Japan（Persons）

Governance③ Small-Group activities
Sumitomo Electric develops and promotes small-group
activities performed to solve problems and achieve
objectives voluntarily on a workplace basis with the aims ofdeveloping human resources and energizing the workplace.
This initiative, which was launched in 1958, is now being
introduced into overseas companies, and has been expanded
to involve a total of 28,000 participants across the Group in
working on 2,200 themes.

Business Outline② Practical training
We develop two practical professional training programs
aimed at cultivating key personnel who are anticipated todrive manufacturing innovation and reinforce SEQCDD＊
improvement, namely MKP (Monozukuri Kakushin Pro Jissen
Dojo (Manufacturing Innovation Professionals' Workshop))and GKP (Genba Kaizen Pro Jissen Dojo (On-site Improvement
Professionals' Workshop)).
Since the start in 2009, a total of 385 participants have been
trained on 290 themes, performing practical activities to solve
problems and achieve objectives related to manufacturing.
During fiscal 2014, we organized MKP for two terms and GKP
for three terms, and a total of 99 participants were trained on
48 themes. The 23 persons who met given criteria werecertified as professionals.

who can meet local needs. The committee is currently
operated in each of China, Indonesia, Malaysia, Thailand andthe United States. The committee members include local HR
managers of the companies and persons in charge of humanresource development in the regional companies that provide
operational assistance, as well as human resource
development staff of Sumitomo Electric. The activities are thepreparation of an education system in each company andplanning and organization of training sessions for the staff
and workers, as well as information exchange activities
including collection of information on training needs fromlocal companies and introduction of Sumitomo Electric's
training programs into them.
We continue to conduct the Sumitomo Electric GroupManagement Program based on the Sumitomo Spirit (MPSS)
to disseminate the Sumitomo Spirit among management
personnel who play pivotal roles in the respective companies
and improve their skills to manage their subordinates. In ﬁscal
2014, this training program was provided twice in each ofEurope, China, Southeast Asia and the United States. While
we developed Initial Training Program (ITP), a common basic
training program to be applied throughout the Group, indomestic affiliates, we have also designed its English andChinese versions and distributed them to overseas sites.
We will continue to provide this training to ensure that thebasic philosophy is shared throughout the Group even amid
rapid globalization.

Basis for Management

Overseas, in addition to basic training on safety, quality andother subjects, we started training for facility maintenancewith focus on safety in September 2010, which is now
organized in China and Southeast Asia on a regular basis.
This maintenance training was provided in 17 companies infiscal 2014 to achieve 623 person-days, which far exceeded
the target of 450 person-days.

Glossary ＊ SEQCDD
SEQCDD stands for safety, environment, quality, cost, delivery and R&D, which are
fundamental components in the business activities of the Sumitomo Electric Group.

CSR Report 201550

Safe and Sound Workplace
Respect for Human Rights in the Workplace

Sumitomo Electric has in place a system to quickly gather
information on any violation of human rights and takeWe respect human rights and strive toestablish sound and lively workplaces

appropriate measures against them.

The Sumitomo Electric respects human rights in its business《 Cooperation with
Human Rights Organizations and Governments 》

operations, in line with the global principle in the 1948
Universal Declaration of Human Rights that All human beings
are born free and equal in dignity and rights.
More specifically, the Sumitomo Electric Group Charter ofCorporate Behavior, which was instituted in accordance with
the Sumitomo Spirit and the Sumitomo Electric Group

Sumitomo Electric participates in human rights organizations
including the Corporate Federation for Dowa and Human
Rights Issue, Osaka. In cooperation with relevant
governmental agencies and other organizations, we work
toward the realization of a society in which human rights areguaranteed for all.

Corporate Principles in September 2005, specifies respect forhuman rights, professional development and establishment ofLabor-Management Relationshipsafe and sound workplaces.
Our Global HRM Policy, which was instituted in September
2011, also declares that we will offer various career
opportunities and pursue globally the right person in theright position

regardless of nationality, race, ethnicity,religion, age or gender, as an essential approach for globally
operating companies. In conformity with the Policy, we strive
to diversify human resources, uphold human rights and create
lively workplaces where each employee can work withenthusiasm.

《 Compliance Manual 》
Respect for human rights and prohibition of discrimination are
clearly stated in the Sumitomo Electric Group Compliance
Manual, along with specific examples.

《 Human Rights Training and Enlightenment 》
We are also making continuous efforts for human rights

The union and management are committed tosolving various problems through in-depth discussions
Sumitomo Electric believes that the development of acompany goes hand-in-hand with the well-being of its
workers' union members. On the basis of this belief,
Sumitomo Electric strives to address various relevant issues
by thorough discussion between the union and management,each party respecting the other's standpoint. In particular, theCentral Management Council Meeting, which is held fourtimes a year, has a history of about 70 years, and has served
as a forum for exchange of opinions between representativesof the union and management concerning businessenvironments and managing conditions. We have also set up
expert committees of various kinds to create an environment
where all employees can work lively with smiles by improving
various working systems and reinforcing monitoring functions.

training and enlightenment to solve a wide range of humanrights issues including discrimination and sexual harassment.

SWiTCH 17 Campaign

In the internal training, human rights have been added as a
subject of the SEI University training programs that arecompulsory for all employees. Human rights training is also
included in mandatory training programs respectively forexecutives, newly promoted personnel and new employees.
In 2014, the total number of participants in the humanrights-related seminars, including the education at the

We are promoting creation of workplaces where
employees can work lively to achieve VISION 2017
campaigns with the aim of ensuring that employees canachieve the proper balance between work and life.
●

SWITCH Campaign (3 years from fiscal 2008 to 2010)
Adjustememt of working hours and improvement of work
efficiency and productivity

worksites provided mainly by Human Rights Task Committee
members, was 8,588.
●

SWITCH Plus Campaign (3 years from fiscal 2011 to 2013)
Measures closely related to improvement of the quality ofboth working and private lives, such as support for thedevelopment of the coming generations, support for nursing
care and mental health measures and other healthimprovement measures

SWiTCH 17 Campaign was launched in fiscal 2014. In thiscampaign, which also inherits the previous initiatives,
individuals and workplaces set targets on the four categories
of work style (review of the way of working), healthcare(physical and mental health management), communication
Training session

As part of the enlightenment activities, we organize an
in-house contest for human rights slogans every year. The(improvement of communication at the workplace) andself-development, and work to meet the targets. Specificactivities of the campaign include display of posters andestablishment of the website to describe the intent of thecontest in 2014 received 3,924 slogans.

campaign and know-how for implementing the activities, aswell as appointment of a person in charge of the promotion《 Establishment of Consultation Services 》
reports, which is supervised by the Compliance Committee,

of SWiTCH 17 Campaign as a workplace leader at eachdivision to promote the activities at the individual andworkplace levels. Outstanding efforts in the workplace areas well as consultation services in regards of sexual

introduced in in-house magazines.

harassment and the work environment. With these services,

Through promotion of this campaign, we aim to develop

We have set up a service to provide consultation and receive

51 CSR Report 2015

We will strive to improve the health of employees
through cooperation with the health insurance society

Average Overtime Hours and Average Number ofPaid Holidays Taken by Employees by Year2006 2007 2008 2009 2010 2011 2012 2013 201422.6 22.1 21.0 14.2 19.1 20.5 18.6 19.3 20.4
hours hours hours hours hours hours hours hours hours

Average number of paid holidays 11.5 11.4 12.1 12.4 11.5 12.3 11.7 10.4 12.1
taken by employees per year
days days days days days days days days days

Average total working hours by year
(Hours)2,100

2,073 2,068

2,050

2,049
2,031

2,042

2,023

2,042 2,042

1,950

1,965

0

2006 2007

2008

2009

2010

2011

2012

2013

2014 (Year)(Note 1) Average among labor union members (those who belong to three
Works, Sumitomo (SEI) Electronic Wire, Inc., Osaka Head Oﬃce, Tokyo
Head Oﬃce and Chubu District Oﬃce (including those who aredispatched to subsidiaries))(Note 2) The data are based on the calendar year of January to December.

We have added questions about dissemination andsharing of VISION 2017 for better understanding of
the current situation of each workplace

Mental Health
We are committed to management of
mental health care for employees across the Company

2012

2013

2014

(persons)

285

215

767

521

557

580

3.90

Workplace
Discipline
3.31

Workplace
Atmosphere3.45

Devotion to Job
3.26

Motivation
Communicationin the workplace

3.44

Satisfaction in
Working

3.52

FY 2014
FY 2013
FY 2012FY 2007

0
Bad

2

3
5-grade scale

4

5
Good

CSR Report 2015

Social Contribution

2011

3.61

Manager'sManagement

Environmental
Preservation

2010

3.57
Human Resources

2009

Supply Chain

Year

Dissemination ofBusiness Spirit andCorporate Principles

Products & Services

Number of Employees Who Took Mental Health Training Course

Results of the Survey toCreate a Lively Working EnvironmentCore
Category

Sumitomo Electric is committed to dissemination of basic
knowledge regarding mental health care through distributionof a related handbook and supply of relevant information on
the corporate website and in-house magazines. We also
work to manage mental health care for employees on acompany-wide scale by providing self-care training toencourage employees to pay attention to any signs of theirown mental health problems, as well as care by supervisor
training for management level employees.
We also station counselors at major operating sites, allowing
employees and their family members to consult externalcounselors from May 2008. Thus, we have set up a systemthat helps us through daily communication to remain awareof employees and their family members with mental healthissues, and enables us to take early measures to addressthese issues. In addition, we are working to enhance thesupport system to allow all employees to have their stresslevels tested. This initiative is also aimed at responding to theamendment of the Industrial Safety
and Health Act, which makes it
mandatory to offer stress check from
December 2015. For employees who
are absent or on leave due to mental
health issues, we have a program toprovide step-by-step support to help
them return to work, and takemeasures carefully in cooperation
between workplaces, HR staff
members and company doctor and
Mental Healthother specialists.
Handbook

Sumitomo Electric has been conducting Survey to Create a
Lively Working Environment, a questionnaire survey toinvestigate the awareness of employees, since ﬁscal 2006. In
ﬁscal 2014 as well, about 20,000 employees were surveyed in
September and October, including those of group companies.
The scores are presented in the ﬁgure below. In the survey infiscal 2014, we added questions about SWiTCH 17 Campaign
and other items. While the survey results show improvement
in most items, there are still issues to be addressed in someareas, and we will design and implement personnel measures
to respond to them. The survey results are also fed back to
the person responsible for each organization, as well as the
person and staff in charge of the SWiTCH 17 Campaign on aworkplace basis. Each workplace specifically identifies
possible problems and promotes measures to solve them.

Group's CSR Activities

Implementation of the Survey toCreate a Lively Working Environment

Governance

2,000

The Japan Revitalization Strategy adopted by the Cabinet inJune 2013 requires all health insurance societies toimplement Data Health Plan. In response, Sumitomo Electric
Health Insurance Society has established the Sumitomo
Electric Data Health Plan with three pillars of 1) developmentof health awareness by introducing the incentive point
system, 2) enhancement of specific health guidance and 3)
strengthening of measures to encourage employees to have
health checkups and prevent diseases from being more
serious, and started the initiatives in fiscal 2015. Whilecollaborating with the society (collabo-health) and working toenhance health awareness of employees (health literacy),
Sumitomo Electric also aims to be a corporate group that is
highly evaluated and trusted by society and enables
employees to stay healthy and work with enthusiasm.

Business Outline

Year
Average overtime
hours per month

Commitment to the Data Health Plan

Basis for Management

lively workplaces in order to win the global competition andachieve VISION 2017.

52

Various Support Programs

Support for Balancing Work and LifeWe actively promote the development ofchild and family-care related systems

We provide each of the employees withvarious types of support

To support employees in balancing work and life, Sumitomo《 Reemployment System 》

Electric is committed to promoting the work style thatIn April 2008, Sumitomo Electric introduced a scheme toachieves the proper balance between work and life and has

reemploy employees resigning due to circumstances beyond

also developed child and family-care related systems actively.

their control such as childbirth, childcare and nursing care. In

For these efforts, the Company has been certified by thethe scheme, we organize interviews and reemploy eligible

Ministry of Health, Labor and Welfare as a company that

persons when they are able to return to work (within threehelps its employees balance work and childcare on the basis

years from their resignation) and, as a general rule, assignof the Act on Advancement of Measures to Support Risingthem to their former workplaces.

Next-Generation Children.

《 Childcare Centers 》

In fiscal 2014, we introduced a welfare system to support

As a measure to foster a supportive environment for

employees in finding a child-care center

employees working full-time while raising children, Sumitomo

to leave their preschool children. This

Electric opened childcare centers at its Yokohama and Osakasystem aims to help the employees who

Works in March and April 2008 respectively, and added ahave taken childcare leave return tothird center in Itami Works in March 2009. As of March 31,

work as originally planned and to2015, these three centers take care of 57 children in total.

enhance support for the employees

For employees who cannot use our childcare centers, we areworking in the operating sites where no
in-house childcare center is available.

taking other supportive measures such as subsidizing theirMark Certifying
Corporate Support for
Parenting, Kurumin＊

use of other childcare centers.

Number of Users of the Employee Support Programs

FY

Employees who tookchildcare leave
Male

FemaleTotal

Employees who took
leave when theirspouses gave birth

Employees who used
the short-time work system
Male

Enrollment in thereemployment
systemUsers of internal
child care centers forchildren

Users ofthe volunteer holiday
systemFemale

Total

2008

3（3） 119（50） 122（53）

44

7

183

190

16

37

4

2009

4（3） 106（56） 110（59）

68

7

172

179

23

40

5

2010

3（3） 100（51） 103（54）

61

14

205

219

20

61

7

2011

2（1） 114（50） 116（51）

61

17

228

245

32

61

16

2012

12（10） 115（60） 127（70）

65

18

254

272

22

64

6

2013

15（13） 106（56） 121（69）

55

21

245

266

26

62

7

2014

16（12） 134（54） 150（66）

71

19

264

283

30

57

7

The number in brackets indicates the number of the employees who took the leave for the ﬁrst time in the ﬁscal year
(Note 1) The data cover Sumitomo Electric.
(Note 2) The number of the employees who took the childcare leave for the ﬁrst time in ﬁscal 2013 has been adjusted retroactively to improve the accuracy.

C S R VO I C E

I used the childcare center inthe company SEI Itami Kids
Shota Katayama

Business Development Department, Sumitomo (SEI) Steel Wire Corp.

When my first daughter was born, I learned the childcare center through aninternal notice and became interested in it. The center is closer to the company
and costs less than external childcare facilities, and it is also an advantage thatchildren can be left at the center even on weekends or holidays in line with thecompany's business schedule. It organizes events such as open days, Christmas
parties and sports festivals, and also provides dietary and English education. I
can leave my kids at the center with a sense of security, and enjoy hearing themtalk about news of the day amusingly every day. I also made family friends withother employees using the center and expanded the circle of friends.

Glossary ＊Mark certifying corporate support for parenting, Kurumin

53 CSR Report 2015

The Ministry of Health, Labor and Welfare granted this mark to Sumitomo Electric for achieving the goals set under its First Action
Plan (April 2005 - March 2007), Second Action Plan (April 2007 - March 2009), Third Action Plan (April 2009 - March 2011), andFourth Action Plan (April 2011 - March 2013) based on the Law for Measures to Support the Development of the Next Generation.

STAKEHOLDERAKEHOLDERDIALOGUE
OGUE

Fifth Sumitomo Electric Group Stakeholder Dialogue
Basis for Management
Business Outline

To Make Sumitomo Electric

Governancea Company Where Women
Can Work at Their BestElectric also recognizes the significance of supporting women in playing important roles and developing themselves. To
this end, it is crucial to establish an environment where they can continue their career through various events in theirlife. This fifth Stakeholder Dialogue was held for discussions with active female employees to gain an understanding of
the current situation and present challenges so that we can further help women play important roles.

After joining the Sumitomo Electric Group

Venue: Tokyo Head Oﬃce of Sumitomo Electric Industries, Ltd.

Products & Services

Date: June 5, 2015 (Fri.)
Kunii: I am Kunii from the Diversity &Inclusion Promotion Group of Human■ Participants

Resources Department, and will be your

Masatoshi Nakata (General Manager, Human Resources Department,
HR & Administration Division)
Resources Department, HR & Administration Division)

Keiko Iwai (Group Manager, Quality Control Group 1,
Yokohama Production Department,
Lightwave Components Division,
Sumitomo Electric Device Innovations, Inc.)

Kokoro Miyake (Business Legal Group, Legal Departme
Department)
Risa Tachibana (2nd Sales Group, 2nd Sales Department,
Departmen Sales Div.

moderator today. I have mainly been in
charge of supporting women in playing
important roles since October 2014.
First, please introduce yourselves.
Nakata: I am Nakata, General Manager of Human Resources

Supply Chain

Miwa Kunii (Manager, Diversity & Inclusion Promotion Group, Human

Core
Category■ Outline of the Stakeholder Dialogue

Group's CSR Activities

While the birthrate is declining steadily in Japan, it is a social challenge to secure quality human resources. Sumitomo

Department. I look forward to hearing you freely exchange
ideas today.
Iwai: I am in charge of quality control of opticalcommunication devices at Sumitomo Electric Device
Innovations, and have been a section manager for almost two
years. I have three children.

energy team in the Business Legal Group of Legal
Department. This is my 11th year in the company.
Dep
Tachibana: I am a sales staﬀ member in Automotive Business
Tach

Environmental
Preservation

Miyake: I am in charge of legal aﬀairs of the environmental

Human Resources(Eastern Japan), Automotive Business Unit)
Un

Unit. This is my ﬁfth year.
Unit

as your impression of the company after actually
as wellw
joining it.
joini

Social Contribution

Kunii: Next, please tell us why you joined Sumitomo Electric,
Kuni＊ The titles/posts of the participants are those at the time of the stakeholder dialogue.

CSR Report 201554

Miyake: When I was looking for a job, I wanted to work for ais that people outside the company tend to think thatcompany in which I can be involved in international projects,

Sumitomo Electric is a company where women are working

which is a manufacturer oﬀering products that contribute toenergetically, rather than those within it. I also hear aboutsociety and which has a sound foundation so that I can work

women who actually want to join our company.

there for a long time, as the three main conditions. Anotherkey to selecting a company was its systems and education

Kunii: While I am the only female manager in the HR groups

programs that would make me grow. After joining Sumitomo

at present, I think women's perspective can be introduced inElectric, I was assigned to Overseas Contracts & Legal Aﬀairs

a meeting even with only one female participant.

Department, and also had an opportunity to work overseas. I
have never felt discriminated against based on gender but feel

Nakata: There is a trend to support thethat all of my aims have been achieved.

success of women in the workplacethroughout the Japanese society. I hope

Tachibana: I had wanted to be in chargethat all female workers are conscious ofof sales since my college days. During

aiming to be leaders.

my job hunting, however, I focused moreon what people were working in thecompany than on what job I wanted todo. I remember that the atmosphere in
Sumitomo Electric was very good. I am now working in a

Various challenges are becoming visible

sales team with the support of senior and junior colleagues. I
feel that the environment is better than expected.

Miyake: I am now pregnant and going to
be a mother next month. I will need to

Iwai: I also joined Sumitomo Electric because thework reduced hours later. As it inevitably

representatives of the company in the company informationaﬀects my work, I am nervous about

session made a good impression. While 22 years have

whether I can do my job satisfactorily. I

passed since then, I have never thought that my choice washope there is a teleworking systemwrong.

although it is diﬃcult to introduce it shortly. Meanwhile, ourdepartment has no female section or group manager like Ms.

Kunii: Ms. Iwai, you have been a section manager for two

Iwai, so it is not very clear what career I can develop in theyears. Do you still feel that the atmosphere of Sumitomo

future.

Electric is good?
Tachibana: I sometimes talk with my boss about my career,
Iwai: I am in charge of management

but it is about career over the span of one or two years. I

while all of the other four members incannot envision my career plan from a long-term perspective

the section are older than me. I haveat present either.

support from them in various ways, andfeel that the good environment remains

Kunii: Flexible ways of working are very important. We planunchanged.

to start a teleworking system for the employees who need toengage in nursing care or childcare, as well as pregnant
employees, on a trial basis in October 2015. As teleworking
is allowed once a week in the plan, the system is aimed at

Signiﬁcance of female workers toplay important roles

expanding job opportunities for those who can work if
teleworking is available, rather than supporting workers inbalancing work and life.

Kunii: Do you think that your presence as a woman in yourdepartment has any impact on the workplace?

Miyake: I hope that the teleworking system is also used bymen, as well as women.

Iwai: I think that what matters is not gender but proper
communication.

Iwai: To support childcare, we also have the reemployment
system. I assume their family situation is a key to working

Miyake: I do not think that the presence of women has

women. My personal view is that working at home is diﬃcultchanged the surroundings either. In the meantime, ourto introduce. There is an issue of whether payment should be

department has a working mother, and she is working

based on working hours or merit. It will be also unrealistic toreduced hours. We help her work eﬃciently by, for example,

introduce the system for factory staﬀ.

trying to hold meetings within her working hours. Her
presence may be creating a sense of teamwork.

Kunii: It is not good to give an impression that only women
receive attention either.

Tachibana: I am working in Utsunomiya Oﬃce, and two of theroughly 50 workers in the oﬃce, including me, are female

Iwai: What level of responsibility they assume is an issue

employees for main career track. I sometimes take 20 malewhen women work as members of society. It is diﬃcult toworkers or so with me to give a presentation. My impression

keep balance between work and childcare.

55 CSR Report 2015

STAKEHOAKEHOLDER
DER DIALOGUE
OGUE

Miyake: While I have learned practical skills to work at ame raising a child now, it is likely that I

satisfactory level, I am now going through the life events ofwill later consider how I can use thepregnancy and childbirth. I want to consider them positively,

systems to balance work and childcare

and seek a more eﬃcient way of working with focus on

at the turning points of my life.

quality.

Business Outline

Iwai: I have already experienced the life
events of marriage, childbirth and child

Communication is important
Kunii: Motivated women sometimes shift
their focus to home life temporarily, butsome of them cannot shift it back torearing. While the short-time work
system was not in place at the time of
my childbirth, we now have various
systems to help women continue towork. I want to disseminate the fact.

I could not apply for a business trip orinteresting project because of childcare. Superiors of
employees who are raising children should not determinethat such employees cannot work for a new project, forexample, on their discretion but ask the employees about
their intentions ﬁrst. Communication is diﬃcult but important.

Governancework later. It is so wasteful, I think. As I
also have children, I have experience that

Basis for Management

Tachibana: Although I cannot imagine

Nakata: Gender issues are problems
unique to Japan. In the Sumitomo
Electric Group, the ratio of female
workers is higher overseas, and many
women are playing important roles froma global perspective. In the future, wehave to solve the challenges related to gender in Japan, andworking. I assume that changes in the way of working among

waiting for it. As I work longer, I feel the importance of thiswhite collar workers will allow women and non-Japanese toattitude more strongly.

work more comfortably.

Miyake: There are circumstances related

Kunii: Sumitomo Electric has arranged systems to welcome

to various life events for women. Still, I

motivated persons. We would also like to enhance thehope that women are actively invited tosupport programs continuously.

join a drinking party or other event thatis precious opportunities for

Nakata: I identiﬁed many issues that I had not noticed

communication.

through this exchange of views. I would like to keep working
employees ﬁnd their various jobs rewarding. I hope to havemake adjustment with my family in advance.

your cooperation.

Nakata: There should be more opportunities for employees,

Supply Chain

including women, to talk about their career plans and share

Products & Services

to solve them, and maintain management activities to help
Iwai: I cannot join a drinking party often because I have toCoreCategory

Tachibana: I try to make communication ﬁrst instead ofGroup's CSR Activities

men also have to change the culture and their way ofvarious situations and feelings.
Tachibana: Our department organizes lunch parties because
general staﬀ, assistants and dispatched workers cannot
attend drinking parties at night.

Human Resources

Nakata: That is a good idea also because quite a few men do
not like alcohol.

Environmental
Preservation

To make Sumitomo Electric a company
where women can take more active roles
Kunii: What roles do you want to play in Sumitomo Electric in
future?

Social Contribution

Tachibana: I hope to be a role model for junior colleagues.
While steadily dealing with the processes of marriage,
childbirth and child rearing, I want to keep working to serve
as a guide.

CSR Report 201556

To Eliminate Occupational Accidents
Basic Approaches●

The Sumitomo Electric Group considers that securing of②Transmission of information on accidents
Prevention of similar disasters by conveying theinformation to the entire Group

health and safety of employees is the basis of the business.
We promote the establishment of culture to prioritize safety
above all else and continuously perform safety and healthInspection of the management status of poisonous anddeleterious substances and dangerous materials●

Safety measures for construction work and operation at height
Assistance and provision of guidance to enhance measures
to ensure safety

activities involving all employees to eliminate risk factors fromour workplaces and to reduce occupational accidents to《 Promotion of Structural Reinforcement on a Company-wide Scale 》

zero.

●

Specifically, we have set medium- to long-term Sumitomo

Development and dissemination of safety global standards●

Electric Group Safety and Health Targets. To meet thetargets, we specify priority activities and priority subjects for●each fiscal year at the Health and Safety Committee, which iscomposed of members from management and the union.

Development and training of human resources inJapan and overseas●●

Sumitomo Electric Group Safety and Health Targets
1．Realizing accident-free worksites andcreating comfortable working environments●●

2．Maintaining and improving compliance
3．Promoting employees' physical and mental health care

Dissemination of Sumitomo Electric's safety standards as
global standards

Strengthening of KKP outside the Works and outside Japan(Cultivation of lecturers in sites and follow-up of the practice)Continuous cultivation of personnel in charge of safety
promotion by the Safety Work Group in other countries
Position-based training, use of risk simulation machines

Activities at the operation sites designated for safety
management and activities subject to priority management●●

Support of sites until they achieve abilities to takevoluntary measures
Continuous follow-up of the activities even aftercancellation of the designation

Activity targets for ﬁscal 2014●

No. of accidents resulting in lost work time: zero●

No. of no lost work time injuries and minor injuries: 20 or lessPriority subjects for ﬁscal 2014
Exertion of management leadership in each division toensure participation of all employees《 Reinforcement of fundamentals in each division 》●●

Strong leadership by top management

Strengthening of Global Safety Activities
To increase the level of safety management ongroup-wide and global scales, we have set
global standards for safety management as
mandatory requirements, and promote safety training
and safety diagnosis activities
The Sumitomo Electric Group has conducted Group Global

Review of the PDCA cycle of safety activities to
use resources

Safety & Maintenance Assessment Activities at its production

Establishment of activities involving all employees

The second series of the inspection was launched in fiscal① Strengthening of the 1-2-3 activities＊
Site inspection by managers and supervisors andidentiﬁcation of problems through dialogues (changes,
diﬃcult operations, status of equipment management, etc.)

2013, and 43 sites in Japan and other countries were

②Equipment safety measures

weaknesses. In addition, we have set Safety Management

●

●

●

activities and safety training programs to help overcome the
Global Standard

Witnessed safety inspection of new or remodeled
equipment

requirements to be

Establishment of work standards (including those forincidental and setup works)
Risk assessment on the spot (observation of actual
operations)④Activities to prevent unsafe actions●

evaluated during fiscal 2014. We organize regular follow-up

Safety measures compliant with the global standard forexisting equipment③Activities to put into practice the lessons learned in
Kiban Kyoka (reinforcement of fundamentals) Training
Program (KKP)＊●

facilities in and outside Japan to improve their weak points.

System to provide guidance through managers

divisionssafety and healthmanagement in an
integrated manner,and started to apply
Safety Management
Global Standard

Forklift Safety Management
Global Standard

Global safety evaluation●

Identiﬁcation of weak points in safety management andsafety activities and support of their improvement

Cross-departmental activities
●

●

and

affiliates to promote

them.

●

Forklift Safety Management

followed by Group《 Strengthening of Weak Points on a Company-wide Scale 》●

andGlobal Standard as

Introduction of individual accident prevention measures
into all other group companies

Safety Performance and Future Actions
In fiscal 2014, the number of
the accidents involving injury increased from fiscal 2013

Plant disaster prevention activities

During ﬁscal 2014, we had 46 accidents involving injury in①Inspection of special material gas and combustible gas
facilities, electrical devices and outdoor utilities to
identify any problems and assess the degree ofobsolescence

total, which were broken down into 15 injuries resulting inlost work time, 18 no lost work time injuries and 13 minor
injuries (excluding employees of the aﬃliates of theSumitomo Wiring Systems Group), and thus failed to meet

Glossary ＊1-2-3 activities

57 CSR Report 2015

Activities of leaders in the divisions as well as managers and supervisors to
inspect sites in one (1) day twice (2) to make over three (3), indications or
warning calls to identify problems＊Kiban Kyoka (reinforcement of fundamentals) Training Program (KKP)
Practical training on health and safety, quality and manufacturing(two- or three-day course)

Accidents involving injuriesor less no lost work time injuries or minor injuries. In

Sumitomo ElectricGroup employees

TemporarySub
worker,total
subcontractor
Japan Overseas

comparison with the results in ﬁscal 2013, while the total
number increased by one, the number of injuries resulting in
Looking at the injuries by situation, we saw a rise in theworks. This was attributed to failure to keep the suﬃcientincrease in employees after incorporation of the construction
division, as well as with a growth in construction works in thesites in the ﬁrst half, which was a result of the launch of new
products and the rearrangement of production facilities.
As to frequent causes of injuries in the past, we worked towithout switching oﬀ the power source or failure to give
suﬃcient signals to the partners during a multi-person workby involving all divisions in the Safety! Power Oﬀ Activity andsafety measures for a multi-worker operation during the

7

3

5

15

10

6

2

18

Minor injuries

7

4

2

13

0

1

16

0

7

38

Total

24

13

9

46

0

8

54

Accidents resulting
in lost work time
No lost work
time injuries

1

1

1

3

0

5

8

10

10

4

24

Minor injuries

6

10

2

18

1

12

55

Total

17

21

7

45

1

17

63

(Note 1) The number of accidents involving injury in the Sumitomo Electric Group includes
those in Sumitomo Wiring Systems, Ltd. (SWS) but excludes those in aﬃliates of the
SWS Group.
(Note 2) The data on employees of the Sumitomo Electric Group cover Sumitomo Electric andits aﬃliates (excluding the listed companies), as well as the companies that are notaﬃliates of Sumitomo Electric but subject to occupational health and safety-related
guidance and supervision by Sumitomo Electric. Employees of the aﬃliates of the
SWS Group refer to those in 11 domestic aﬃliates and 101 overseas ones.
(Note 3) The ﬁgures on Accidents involving minor injury and Total of Sumitomo ElectricGroup employees in Japan during ﬁscal 2013, as well as the ﬁgures on Accidents
involving minor injury and Total of Temporary worker, subcontractor duringﬁscal 2013, have been corrected with the improvement of accuracy.

Governanceprevent recurrence of injuries due to insertion of a hand

Fiscal 2013

level of safety management of construction works with an

Accidents resulting
in lost work time
No lost work
time injuries

Total

Japan Overseas

Business Outline

number of injuries during maintenance and construction

Fiscal 2014

lost work time grew from three to 15 in ﬁscal 2014.

Employees of
the aﬃliates of
the SWS Group

Basis for Management

the target of zero injuries resulting in lost work time and 20

second half of ﬁscal 2014. Consequently, we reduced such
accidents by 58% from the ﬁrst half. On the other hand, therotating/moving parts or injury during use of jigs, tools anddies continued to occur often due to failure to ensurehorizontal development of the countermeasures.
In ﬁscal 2015, we aim to establish the priority activities,（Frequency rate）

2

1
0.5

Safety! Power Oﬀ Activity, (3) Ensure safety in multi-worker

0of top management with involvement of all workers.

1.83

1.8

1.62

1.61

1.62

1.59

1.58

1.66

1.05

1.00

0.94

1.06

0.17

0.14

0.02

0.14

2011

2012

1.5

which are (1) inspection to prevent serious disasters, (2)operation and (4) Stop similar accidents, under the initiative

1.9

Group's CSR Activities

accidents involving injury by inserting a hand into

Lost Time Injuries Frequency Rate＊
for Employees in Japan by Year

1.02

1.09

1.12

0.99

0.98

0.24

0.14

0.07

0

0.04

2007

2008

2009

2010

2006

All industries

Manufacturing industry

2013

2014 （Fiscal

year）

Sumitomo Electric GroupCore
Category(Note) The data cover Sumitomo Electric and its 46 aﬃliates in Japan,
excluding the aﬃliates of the Sumitomo Wiring Systems Group.

C S R VO I C EShinya Okuyama General Manager, Global safety department, Sumitomo (SEI) Electronic Wire, Inc.

Supply Chain

Everyone, Safety to you all! The Sumitomo (SEI) Electronic Wire, Inc. (SEIW) Group manufactures wiring
materials for electronics devices at nine production bases in Japan and other countries (Kanuma,
Hachinohe, three bases in China, Vietnam, Malaysia, Hungary and the US) with about 7,000
employees. During fiscal 2013, a total of 13 accidents involving injury occurred in the Group. With
recognition that we are in a critical state, we set up Global Safety Promotion Division in March 2014,and have promoted activities for the following four items based on analysis of our weaknesses.

Products & Services

Global Safety Activities

Human Resources① Active involvement of the top management： The global safety meetings, which have beenorganized conventionally, are now attended by general managers, president and site managers. With
presentation of policy and other information by Global Safety Promotion Division, as well as reportingof activities and problems by the bases, the function of the meetings as a platform to solve problems
and promote safety activities has been enhanced.

Environmental
Preservation② Training for local field leaders：In overseas bases, where a personnel change is made frequently,
it is urgently needed to improve the sense of safety of the field leader and enhance their leadershipabilities. An initiative has been started for these purposes, in which field leader (teachers) give lessons
to general workers (students) with training materials for eradication of unsafe actions (e.g. Stop, call,wait, Do not insert your hand into something moving and Maintenance operations ). Through thistraining course, the teachers and students improve their understanding and share a same way of
thinking for daily operations. We actively promoted the initiative in the bases, and almost all
employees completed the training course in the second half of fiscal 2014.
③ Improvement of equipment：Injuries due to defective equipment also occurred in fiscal 2013. We
have promoted the improvement of equipment structures to meet our Group's global standard forequipment, which was established for equipment technologies specific to our Group, as well as theSumitomo Electric's Global Standards for equipment.
frequently to identify any unsafe conditions (equipment, 5S) and give support concerning these organizations and activities.
In fiscal 2014, we successfully reduced the number of accidents involving injuries by half from fiscal 2013 due to great efforts of our basesin Japan and overseas. In fiscal 2015, we will make efforts to eliminate accidents by maintaining and establishing the independent
activities of the bases and the group-wide activities mentioned above, as well as the emergency safety measures of Sumitomo Electric
launched in the second half of fiscal 2014. Continuation will be our power!

Social Contribution④ Reinforcements of safety patrol：Global Safety Promotion Division and Plant Engineering Division visited our bases for inspection more

Glossary ＊Frequency rate
Number of deaths and injuries caused by industrial accidents per million working hours. Used to express accident frequency.
The formula is: Number of deaths and injuries caused by industrial accidents / Total working hours x 1,000,000.

CSR Report 201558

〈 CSR Core Category 〉

Environmental
Preservation

Environmental Management
Environmental Policy〈 CSR Priority Theme 〉

Prevention of Global Warming
While making energy saving eﬀorts, we also
aim to lower the environmental impact of
products throughout their lifecycle.
The Sumitomo Electric Group considers thatprevention of global warming is a crucial theme
because it leads to promotion of energy saving
activities and can also bring about business
opportunities. We are committed to development
and improvement of energy saving initiatives atdomestic and overseas establishments, as well as
reduction of overall environmental impact of
products throughout their lifecycle.

The Sumitomo Electric Group has developed its environmental
policy based on its business philosophy, which forms the basis
for its business management. The environmental policy,
detailed below, places the highest managerial priority on
activities related to preservation of the global environment.

Environmental Policy (extract)※
Basic Philosophy
The Sumitomo Electric Group thinks it is primarily important toestablish a society that is sustainable and has less environmental
impact, and contributes to society by providing products and services.

Action Guidelines
1. Considering environmental preservation activity is one of the mostimportant issues for corporative management, the Sumitomo
Electric Group promotes the activity based on its action plan.
Reduce environmental impacts in manufacturing activities
Prevention of global warming, saving and recycling ofresources and prevention of environmental pollution● Increase environmentally-conscious products and services
Phase out of harmful substances, and implementation of
product assessment and product LCA●

2. The Group will fulﬁll and enforce environmental management system.

① Develop the Action ECO-21 (Phase Ⅴ) campaign
based on the ISO 14001 environmental
management system●② Enhance eﬀorts to introduce energy savinginitiatives
into overseas establishments③ Strengthen our capacity to propose environmentallyconscious products to contribute to reduction of
overall environmental impact across society

We will accumulate discovery andimprovement of problems to make more
contribution to prevention of global warming
throughout the Group.
Masaki Morishita
Supervisor of Energy Saving Engineering Department, Plant Engineering Division,
Sumitomo Electric Technical Solutions, Inc.

I am in charge of ﬁnding problems throughmeasurement-based evaluation ofcompressors, which is more advanced thanenergy saving diagnosis, as well as making
proposals for improvement.
Compressors consume one fourth of the total
electricity used in a plant in general, andimprovement of the consumption eﬃciency
therefore makes great contribution to cost
reduction and prevention of global warming.
On the other hand, compressors are often
operated on a continuous basis, and it isdiﬃcult to identify wasteful operation.
I have detected waste in a wide range of factories based on
my unique know-how accumulated through past activities andclose communication with production sites, and proposed
remedial measures along with the waste reduction eﬀectpresented in a quantitative manner to help realize theimprovement.
As a result, I had evaluated approximately 50 production sitesof the Sumitomo Electric Group by ﬁscal 2014, and the cost
reduction was equivalent to 100 million yen in total. It is
encouraging that I am often appreciated by people in the sites
I visit.
I started to evaluate overseas plants last year, and also
conduct an extended version of diagnosis based on
measurement of the entire line of a plant.
I will continue to contribute to cost reduction and preventionof global warming through measurement-based evaluation.

59 CSR Report 2015

Web

Provision of educational programs on environmental
preservation and implementation of environmental audits

3. The Sumitomo Electric Group will maintain and improve
compliance action.
4. The Sumitomo Electric Group's Environmental Policy will be
opened to the public upon request.

Organizations for
Promoting Environmental Management
We oversee the Group's environmental preservation
activities on a global basis
The Corporate Environment Committee is the supreme Group
organization for making decisions related to environmental
management. It oversees the entire Group's environmental
preservation activities on a global basis.
President
Corporate Environment Committee
Environment Task Committees
Business Unit Environment
Committees

Internal Environment
Audit Teams

Works Environment Committees

Divisions

Divisions

Domestic aﬃliates
located inside Works

Domestic aﬃliates
located inside Works

Domestic aﬃliates
located outside Works

Domestic aﬃliates
located outside Works

Overseas aﬃliates

Overseas aﬃliates

Response to Environmental Risks and Opportunities
through Environmental Management
Environmental activities include pursuit of efficient production
and reduction of unnecessary use of resources and energy,
which also lead to a more robust cost structure.
The Sumitomo Electric Group actively develops activities to
identify environmental risks and respond to them based on
the recognition that such activities not only reduce the risks
and avoid damage to our reputation, but they also provide
opportunities to increase the corporate value as well as
business opportunities.

※ See our website for details.

http://global-sei.com/csr/environment/management.html

Opportunities and speciﬁc activities

Emission of pollutants

We assess environmental facilities in all sites in Japan and overseas and take measures that prevent environmental problems.

Chemical contamination

We prepare guidelines on chemical control in the factories handling poisonous and deleterious substances, etc., and develop
activities to inspect and improve the control of chemical substances in all sites and aﬃliates in Japan and overseas.

Global warming

Various energy saving initiatives are actively promoted, including the energy saving diagnosis program to identify the items to
be improved, because such activities result in helping prevent global warming and also reduce energy cost.

Waste reduction /resource saving

We actively engage in eﬀorts to reduce waste generation through recycling, conversion of waste into valuable materials andreduction of waste volume, and also promote such activities from the perspective of material ﬂow.

Chemical substancesin products

We ensure commitment to this issue to maintain our reputation and prevent occurrence of recovery cost and compensation
for damage.

Environmentallyconscious products

By producing many lines of environmentally conscious products, we seek to enhance the value of our products and increase
our market share.

The Sumitomo Electric Group has conducted the Action ECO-21 Campaign since April 2003. The E in the Action ECO-21
Campaign stands for environmental engineering, C for environmental communication and O for originality. While the Action
ECO-21 (Phase Ⅴ) Campaign was promoted as a two-year plan from fiscal 2013, we will develop the Action ECO-21 (Phase Ⅵ)
Campaign from fiscal 2015.

●

Targets of the Action ECO-21 (Phase Ⅵ) Campaign

Period: Fiscal 2013 ‒ 2014
Item

Descriptions

Environmental
eﬃciency

Targets for ﬁscal 2014

Fiscal 2014 results

Reduced 25%◎

Reduce greenhouse gas emissions(in Japan and overseas)

Reduce 2% from FY 2012

Reduced 0.9%▼

①Reduce energy consumption perunit of sales through energy saving(in manufacturing sites) [Consumption
in crude oil equivalent / sales]

Reduce 8% from FY 2012
(4% per annum; reduce
20% in 5 years)

Reduced 23%◎②Reduce energy consumption perunit of sales through energy saving(oﬃces)[Consumption in crude oil
equivalent / ﬂoor area]

Reduce 2% from FY 2012

Reduced 19%◎③Reduce CO2 in logistics per unitof salesReduce 2% from FY 2012

Reduced 3.2%◎

0.3% or less

0.05％

◎

（2）
Reduce waste (excluding
Promotion ofvaluable materials) (in Japan)
resource
conservation （3）Reduce the zero emission rate
and recycling(overseas)

Reduce 2% from FY 2012

Reduced 4.7%◎△

Reduce 2% from FY 2012

Reduced 23.2%◎（1）
Reduce emissions of volatile organic
compounds (VOCs) (in Japan and overseas)

Reduce 2% from FY 2012

Increased 8%▼

Prepare for discontinuing use of allof the substances to be potentiallybanned by the RoHS Directive(phthalates and somebromine-based ﬂame retardants)
Set the numerical target in Phase Ⅵ

Completedinvestigationof the use ofphthalates

○

１００％

100% (128)○

Reduction of
the harmful
Use no hazardous substanceschemical （2）(to comply with the RoHS andsubstances
ELV Directives)

50％

44％

△

Contribute to reducing CO2 emissions
by 100 thousand tons/year

63 thousand
tons/year△

Legend ◎：Performance far exceeding the target (by more than about 150%); ○：Target achieved; △：Target notachieved (performance improved from the previous ﬁscal year); ▽：Target not achieved (performance similar tothat in the previous ﬁscal year); ▼：Target not achieved (performance deteriorating from the previous ﬁscal year)

In fiscal 2014, environmental efficiency was
improved by 25% from the ﬁscal 2012 level●

Reduced
1%/year 20125%

（1）
CO2 emissions (in Japanand overseas): reduction of
the absolute amount●●

Reduced
1%/year 2012
5%

●

●

Reduced
4%/year 2012
20%

●

●

Reduced
1%/year 2012
5%

（4）
Reduction of CO2 in logistics:
reduction of CO2 per unit of sales●―

Reduced
1%/year 2012
5%

（1）
Reduction of the zero
emission rate (in Japan)●―

0.3% or
less

―

―

―

●

0.5% or
less

―

―

●

―

Reduced
1%/year 2012
5%

（4）
Water use: reduction ofwater use per unit of sales●●

Reduced
1%/year 2012
5%

Release of chemical substances
Reduction of （1）(in Japan): reduction of thesubstances ofenvironmental
absolute amount ofconcern
PRTR-designated substances●―

Reduced
1%/year 20125%

Promotion of（1）
Management of chemicalchemical
substances in products
control●●

Ensure compliancewith laws in Japanand overseas

―

●

―

Register 100% of
new products――

60% of the ratio
in sales (in Japan)――

Contribute to reducing CO2
emissions by 100 thousand
tons/year―（2）
Energy saving (production sites):
reduction of energy
Globalconsumption per unit of sales
warming
Energy saving (oﬃces):prevention （3）reduction of energy
consumption per unit of sales（2）
Reduction of the zero
Promotion ofemission rate (overseas)
resource
conservation （3）Amount of waste (in Japan):and recycling
reduction of the absolute amount（1）Eco Mind products
Expansion ofenvironmentally（2）
Eco-products
conscious
product range●（3）
Products with less CO2
emissions●※Zero emission rate: Ratio of waste which is not recycled (see P68)

Environmental Eﬃciency＝Monetary value of environmental impacts (CO2, wastes, harmful substances, NOx and SOx) / Sales
Environmental
eﬃciency（×10−4）

16

16.02
13.28

12

15.70
11.98

8
4
0

2012 Base2013 Result2014 Result2014 Target(Fiscal year)(Note 1) Data on CO 2 emissions and wastes are collected from Group companies in Japan andoverseas while those on harmful substances, NOx and SOx are from Group companies inJapan only.
(Note 2) The environment eﬃciency for the past ﬁscal years has been recalculated retroactively as follows:
1. Data on the three domestic plants of J-Power Systems Corporation, which was incorporated asa consolidated subsidiary in ﬁscal 2014, for the past ﬁscal years have been added retroactively.

Social Contribution

The Sumitomo Electric Group has defined environmental
efficiency as the sum of the damages of various
environmental impacts (converted into monetary value
according to LIME＊, a life cycle impact assessment method
based on endpoint modeling) divided by sales, as agroup-wide indicator on environmental management.
We will continue to enhance our efforts to meet the targets
for the Action ECO-21 (Phase Ⅵ) Campaign on a global scale.

●

Environmental
Preservation

Monitoring Based on Environmental Efficiency

Base
year

Human Resources（1）
Register Eco Mind products
Expansion ofenvironmentally （2）Increase the ratio of
Eco-products in sales
conscious
product range（3）
Reduce CO2 emissions by productswith less CO2 emissions

Targets forﬁscal 2017

Supply Chain

12.3％

in
over
Japan seas

Environmental impacts/
sales

Environmental
eﬃciency

Reduction of environmental
impact from products

Environmentallyconscious product5% or less（4）
Reduce water use per unit of sales[Water use / sales]

Descriptions

Products & Services

Reduce 2% from FY 2012

Scope
Item

Core
Category

Monetary value of environmental
impacts (CO2, wastes, harmful
substances, NOx and SOx) / sales（1）
Reduce the zero emission rate
(in Japan)

Period: Fiscal 2015 ‒ 2017

Reduction of environmental impacts from business activities

Reduction of environmental impacts from business activities

Globalwarmingprevention●
Evaluation

Group's CSR Activities

Targets and Results of the Action ECO-21 (Phase Ⅴ) Campaign

GovernanceAction ECO-21 Campaign

Business Outline

Compliance violation

Detailed environmental audits are conducted in all sites and aﬃliates in Japan and overseas to identify any events that can
result in violation of environmental laws and to take measures to address them.

Basis for Management

Main environmental risks

2. The amount of waste for the past ﬁscal years has been adjusted retroactively with the
improvement of accuracy.

Glossary ＊LIMELife Cycle Impact Assessment Method Based on Endpoint Modeling (LIME) is a method forevaluating the impact of products and services on the environment.

CSR Report 201560

provided systematic education on general environmental

Education and Training

issues, environmental laws, chemical control and global

We provide systematic education programs on
environmental conservation

warming as part of the position-based training program.
A total of 611 employees participated in 35 sessions during

To realize environmental management, the Sumitomo Electric

the fiscal year.

Group works to enhance every employee's environmental
awareness and knowledge. We provide all employees witheducation on the history of measures to protect the global
environment as well as the Group's environmental policy andthe Action ECO-21 Campaign. In fiscal 2014 as well, we
Training system

Training menu
General environmental
education
Legal andcompliance education

Generaltraining
Sectoraleducation

Sectoraleducation

The Sumitomo Electric Group implements audits based on

Sumitomo Electric Group's
environmental activities

ISO 14001. In addition, to ensure compliance with relevant

Education on environmental laws

laws and reduce even more environmental impact, we have

Education on legal issues

conducted environmental audits with a focus on compliance

ISO 14001 internal auditor education

EnergysavingEducation on energy saving methods andthe improvement

Eco-Life
Activities

Sumitomo Electric Group Eco-Life Activities

Waste

Waste separation and treatment

Position-based General environmental
and sectoral training
training

We implement audits of overseas sites, as well assites in Japan, according to the environmental laws
in the countries and regions where they are located《 Audit Implementation Plan and Its Progress 》

Environmental awareness education

ISO14001

Chemical
substances

On-sitetraining

Title of the training

Global Environmental Audits

with environment-related laws and the efforts in the Action
ECO-21 Campaign since fiscal 2008, and finished the auditsof all 53 manufacturing sites in Japan by the end of fiscal
2011. We are now planning the second round of the audits.

Management of harmful
substances contained in products

Environmental audits of manufacturing sites outside Japan

Management of poisonous anddeleterious substanceswere also started in fiscal 2010.

Environmental laws, chemical control,
energy saving

Following the audits of 11 sites in China in fiscal 2010, of four

EnergysavingEducation on energy saving methods
and the improvement

OthersOther educationsites in Thailand and four sites in Malaysia in fiscal 2011 andof three sites in China and four sites in Indonesia in fiscal
2012, as well as the audits of three sites in China, two sites inEnvironmental Accounting

Financial items(New Approach to Calculation and Disclosure)
Since our CSR Report 2010, we have collected andInvestment

Expense

Economic eﬀect(million yen)(million yen)(million yen)2012 2013 2014 2012 2013 2014 2012 2013 2014

disclosed environmental accounting data based on a
Investment inenergy saving

new disclosure approach in reference to the conceptof the Connected Reporting Framework (CRF)＊.

Reduction ofenergy cost

(Note 1)

(Note 1)

Boundaries of tabulation: Sumitomo Electric + domestic aﬃliates(Note 1) Only the amount of investment in the activities mainly aimed atenergy saving among the activities certiﬁed as energy saving
activities by the Energy Saving Oﬃce of the Safety & Environment
Department is subject to the calculation (the activities mainly forthe purposes other than energy saving, such as renewal of aging
facilities and peak cut, are not covered). The economic eﬀect
includes that of the energy saving activities in which no investment
has been made.

Reduction ofgreenhouse gas
emissions
1,303 2,717 1,918

384

534

639

(Note 2) The amount of investment does not include investment related toeﬃcient use of resources but covers investment for reduction ofwaste generation and recycling.

Investment inresource saving
and recycling(Note 3) The cost is calculated based on payment to the waste disposal
contractor. Metals are not included in the calculation of either
cost or economic eﬀect.
(Note 4) Change due to boundaries change: Emissions or amount of waste
in ﬁscal 2013 from the boundaries of collection newly added or
excluded in ﬁscal 2014 (no boundaries were newly added or
excluded in this ﬁscal year).

Waste
disposal cost

(Note 2)

Sale ofvaluables materials(Note 3) (Note 5)(Note 3) (Note 5)

Waste
reduction

Change due to sales change: [Emissions or amount of waste inﬁscal 2013 from the boundaries of collection for ﬁscal 2014] x(Sales in ﬁscal 2014 / Sales in ﬁscal 2013 - 1)

49

23

10

1,017

983

1,080

91

107

Actual change: Calculated by subtraction(Note 5) In the non-ﬁnancial items, emissions from the three domestic plantsof J-Power Systems Corporation, which was incorporated as aconsolidated subsidiary in ﬁscal 2014, have been added
retroactively. In accordance with the revised data, the reduction
rate has been recalculated.

Cost ofmanagement activities

1,070 1,157 1,049(Note 5)

Cost ofsocial activities

9

6

14

Cost of environmental
remediation

12

8

9

Glossary ＊Connected Reporting Framework (CRF)

61 CSR Report 2015

A reporting scheme developed in the U.K. that integrates ﬁnancial andnon-ﬁnancial information in the disclosure.

89

In Japan, we conduct audits to confirm compliance with 120

United States in fiscal 2014. As a result, we have completed

items of 23 environmental and related laws as well as the

38 of the 46 sites subject to audits as of the end of fiscal

ordinances of the prefectures and municipalities where the2014. In fiscal 2015, we have scheduled to audit eight sites insites are located. Overseas, we also investigate theEurope and the United States.

environment-related laws in the countries and regions where

For our domestic sites, to prevent environmental accidents,

our global facilities are located, and carry out audits based

we launched the evaluation of facilities that may affecton the results.

effluent quality in fiscal 2012, and evaluated nine sites infiscal 2012, 11 sites in fiscal 2013 and six sites in fiscal 2014.
We also started the evaluation of overseas facilities in fiscal
2013, and evaluated seven sites in fiscal 2013 and seven

Business Outline《 Conﬁrmation of Legal Compliance 》

in fiscal 2013, we conducted audits of three sites in theBasis for Management

the Philippines, two sites in Vietnam and two sites in Taiwan

sites in fiscal 2014. The evaluation of facilities in Japan andoverseas will be continued in fiscal 2015.

In response to a revision of the Water Pollution Control Act in2012, we started the evaluation of facilities that use any of
the hazardous substances, designated substances, oils, etc.
and may thereby affect water quality. The equipment andancillary facilities are inspected to assess the management
status on the check items set for each of the parts such as

regulations (cases where guidance, recommendation or orderto pay fine was issued by the authority) were reported to the
Safety & Environment Department of Sumitomo Electric.
An affiliate in Taiwan received an order from the authority to
pay a fine for emission of white smoke and insufficient facility
performance management in May 2014. Another affiliate in
Taiwan received an order from the authority to pay a fine for《 Action ECO-21 》

insufficient paperwork for a waste treatment plan in March

We have set 60 check items for our sites both in Japan and2015. We will continue to make efforts to ensure

overseas to audit their activities and progress.

compliance.

Change factors in ﬁscal 2014 (in Japan)

Performance (in Japan)Core
Category

Non-ﬁnancial items
Strategy/opportunity and risk

0
900

787

750

3.3
761

Reduction rate (%)
0

5.3

2

744

GHG emissions(thousand tons-CO2e/year)
900

5

750

10

600

761

0

34

Reduction of 5% from the ﬁscal 2012 level in ﬁscal 2017 is set744

as the target. To achieve it, we aim to reduce energy▲51

consumption per unit of sales by 20% from ﬁscal 2012 level,
and have strived for it. We made various energy saving eﬀorts

600

in this ﬁscal year as well. These activities are also important for
the reduction of energy cost, which has been rising steeply in

300

300

recent years.

150
150
0

The knowledge learned through the activities is also2012 2013 2014 Target (Fiscal

year)

0

GHG emissions

introduced into overseas Group companies.
2013 Change due

to boundaries
changeEmission reduction rate(from the ﬁscal 2012 level)

50

0

40

34.1

30

4.7

2

Reduction
rate (%)
0

9.4

5
10

30.9 32.5

20

0Amount of waste (excluding valuable materials)(thousand tons/year)(Note 4)We set the reduction of 2% from the ﬁscal 2012 level as the50

target for ﬁscal 2014. To reduce the amount of waste, we are

40

30.9

0

1.4

0.2

32.5

promoting conversion of waste into valuable materials. The

30

main investment during this ﬁscal year was waste liquid

20

treatment facilities, enabling us to concentrate waste plating
solution and thereby sell the metal content.

102012 2013 2014 Target (Fiscal

year)

0

Amount of waste

We will continue our commitment to concentration of waste
2013 Change due Change due

Waste reduction rate (from the ﬁscal 2012 level)

to boundaries
changeto saleschangeActualchange2014 (Fiscal

liquid as a method to reduce the amount of waste.

year)

ISO 14001 is the core of our environmental management
activities, and the certiﬁcation is requested by customers.

Cleanup of areas outside company sites,
external environmental education, etc.

We consider cleanup of the neighboring areas as a basic social activity,
and will continue our commitment to communication with local
communities through this initiative.

Restoration of contaminated soil and groundwater

We continuously restore the contaminated soil andgroundwater identiﬁed in our facilities.

CSR Report 2015

Social Contribution

Cost of environmental organization,
ISO 14001 registration and maintenance, etc.

Environmental
Preservation

10

Change due Actual 2014 (Fiscal
year)
to saleschangechangeHuman Resources

Amount of waste (excluding valuable materials)(thousand tons/year)

Supply Chain

450
450

Products & Services(Note 4)GHG emissions(thousand tons-CO2e/year)

Group's CSR Activities

liquid storage and pipes.

Audit work in the US

In fiscal 2014, the following two violations of laws andGovernance《 Evaluation of Facilities That May Affect Water Quality 》

62

Materials Flow (Environmental Impacts)
OUT PUTI N PUT
DesignMaterials

Greenhouse gas emissions

Copper ※271 thousand tons

CO2

Iron

302 thousand tons

Other gases

Aluminum

23 thousand tons

Resin

98 thousand tons

1,419 thousand tons
37 thousand tons

(converted into CO2)

Air pollutant emissions

Chemical substances
15 thousand tons

NOX ＊199 tons

SOX ＊12 tons

EnergyChemical substance emissions

Electricity

2,165 million kWh

LPG

8 thousand tons

City gas

Manufacture

80 tons

Into the water

2 tonsAs industrial waste

47 million m3

Other fuels

180 tons

Wastes (excluding valuable materials)(converted into crude oil equivalent)

11 thousand kl

Water

Into the air

General wastes

15 thousand tons

Industrial wastes

56 thousand tons

12,381 thousand m3
Recyclable materials 62 thousand tons

Product packaging materials
60 thousand tons

Wastewater

10,590 thousand m3

Products

Product shipments 461 thousand tons

Logistics

CO2 emissions ＊Transportation fuel(converted into crude oil equivalent)＊

14 thousand kl●

Materials (copper, iron, aluminum and resin): Total
quantity of the product materials managed on aweight basis (those used by a business unit in theamount of 100 tons or more in total)●

Product shipments: Total shipments of the productmaterials managed on a weight basis (thoseshipped by a business unit in the amount of 100
tons or more in total)●

Chemical substances : Substances speciﬁed in the
PRTR Law and equivalent laws in other countries●

Electricity : Purchased from electric powercompanies●

Other fuels: Heavy oil, kerosene, gas oil and natural gas●

Water : City water, industrial water and well water(groundwater)●

Product packaging materials : Corrugatedcardboard, paper, resin and wood●

Transportation fuel : Gasoline, gas oil etc.

Boundaries of data integrationUse

36 thousand tons●

CO 2 : CO2 emitted from the use of electricity, gas
and fuels●

Greenhouse gases other than CO2 : SF6, HFC, PFC
and other greenhouse gases converted to CO 2
equivalent●

NOx : Nitrogen oxides emitted from the use of gas
and liquid fuels●

SO x : Sulfur oxides emitted from the use of liquid fuels●

General wastes : Non-industrial wastes (including
paper, wood, ﬁbers and other trash) generated
through business activities●

Industrial wastes : Wastes speciﬁed in the "Waste
Management and Public Cleansing Law," including
sludge, waste oils, waste acids/alkalis, waste
plastics, metals, glass, ceramics, cinders and othersubstances generated through business activities●

Wastewater : Wastewater discharged from plant
production processes, and household wastewater

Items with ＊: Sumitomo Electric + domestic aﬃliates; Items without ＊: Sumitomo Electric + domestic and overseas aﬃliates※In the Environment and Energy Group, which is included in the scope of data collection, only data on the amount of the materials purchased by
the Procurement Division of Sumitomo Electric alone are covered.

Explanation of the Boundary
In promotion of environmental management, Sumitomo Riko Company Limited, Nissin Electric Co., Ltd. and Sumitomo Densetsu Co., Ltd., which
are listed in the stock exchange in Japan, and their consolidated companies are excluded from the boundaries of the environmental
management of the Sumitomo Electric Group although these companies are included in the boundaries of consolidation for financial reporting.
When the comprehensiveness of the boundaries is assessed based on greenhouse gas emissions, a representative environmental indicator, theemissions from the boundaries of the environmental management of our Group, 1,456 thousand tons, account for the vast majority of 1,600
thousand tons, which are estimated greenhouse gas emissions from the boundaries of consolidation for financial reporting in fiscal 2014.
In the meantime, out of the 242 consolidated subsidiaries excluding the 3 listed companies mentioned above , the environmental managementof our Group covers 145 companies in production units (46 in Japan, 31 in China, 32 in Asia (except China), 14 in the Americas and 22 inEurope and other in fiscal 2014). Our trial calculation indicates that environmental impact, such as greenhouse gas emissions, of the 145
companies is estimated to occupy 99% of that of the 242 subsidiaries.

63 CSR Report 2015

Activities to Prevent Global Warming

Our CO2 emissions decreased in Japan but grew overseas
The Sumitomo Electric Group sets the targets of reducing GHG

Factor Analysis of Changes in Greenhouse Gas Emissions(in Japan and overseas)
Emissions converted to CO2 equivalent(thousand tons-CO2e/year)

182

1,600

emissions by 2% from the fiscal 2012 level in fiscal 2014 in the
Action ECO-21 (Phase Ⅴ) Campaign. Various energy saving

1,442

1,456

2

1,400

▲170

emissions in Japan in fiscal 2014 from the previous fiscal year.
While GHG emissions from our overseas companies recorded a

1,200
0

2013

year-on-year increase, the emissions in the whole Group werereduced by 0.9% from the fiscal 2012 level. This is an outcomeof the energy saving efforts promoted actively throughout theGroup under the initiative of the Energy Saving Office. Ongoing

Change due toboundaries
changeChange due tosales change

Actualchange2014(Fiscal year)(Note) Change due to boundaries change: Emissions in ﬁscal 2013 from the boundaries ofcollection newly added or excluded in ﬁscal 2014.
Change due to sales change: [Emissions in ﬁscal 2013 from the boundaries of collection forﬁscal 2014] x (Sales in ﬁscal 2014 / Sales in ﬁscal 2013 - 1)
Actual change: Calculated by subtraction

shifting our production facilities to overseas sites.

Greenhouse Gas Emissions from the Global Operations of
the Sumitomo Electric Group by Region

The Action ECO-21 (Phase Ⅵ) Campaign, which is developed(thousand tons-CO2e/year)

from fiscal 2015 to fiscal 2017, sets an aggressive target of800

reducing GHG emissions by 5% from the fiscal 2012 level by

700

fiscal 2017. To achieve the target, we will promote energy

600

saving activities by sorting out the conventional measures in an

500

which can be taken on a division basis as before and initiatives
to be developed by the entire Group including the Energy

761 744

Group's CSR Activities

organized and systematic manner and dividing them into those

787

Governanceimprovement of the energy efficiency in our overseas
companies has also contributed to the reduction while we are

400

285
263 263 268 278 267

300
200

Saving Office in a cross-departmental manner.
We will also introduce the knowledge on energy saving

100

accumulated in Japan into overseas bases in collaboration with

0

2012

saving but also to reinforce the corporate structure.

93 104 107

48 47 52
Europe, etc.

their mother factories. It is not only used to promote energy

2013

China

2014

Asia

Japan

America(except China)

Reduction of Energy Consumption

The corrected data are now disclosed, which accordingly

While the absolute value of energy consumption is
on the increase, the value per unit of sales is dropping
We reduced energy consumption per unit of sales by 23%

Greenhouse Gas Emissions and Reduction Ratio(in Japan and overseas)
0

1,600

1,385

1,400

improvement was attributed to sales growth supported by the
Reduction ratio (%)

0.9

1.9
1,469

0
1
2
3

3.0

1,442

1,456

1,425

682

681

711

662

752

787

761

744

763

eﬀorts in Japan to address the skyrocketing electricity prices
measures conventionally developed in Japan into overseas
sites through collaboration with their mother factories to800

promote energy saving eﬀorts strongly on a global scale.

600
400
200

Energy Consumption and Energy Consumption per Unit of Sales(in Japan and overseas)

0

2011

In Japan

2012
Base

Overseas

2013
Result2014
Result2015
Target(Fiscal year)
Energy consumption(TJ/year)

38

Reduction ratio

Basic policy on the emission factors: ﬁxed emission factors are applied to the values forall ﬁscal years presented in the graph.
CO2 emission factor for purchased electricity[In Japan] Actual emission factor of each electricity power supplier published in the
Disclosure of actual emission factor, adjusted emission factor, etc. of eachelectricity power supplier for ﬁscal 2012 (2013) by the Japanese Ministryof the Environment

CO2 emission factor for other than purchased electricity[Both in Japan and overseas] Emission factor in Guidelines for accounting andreporting of greenhouse gas emissions from industrial
commercial sectors (2003) by the Japanese Ministryof the Environment(Note 2) Emissions from the three domestic plants of J-Power Systems Corporation, which was incorporated
as a consolidated subsidiary in ﬁscal 2014, for ﬁscal 2012 and 2013 have been added retroactively.
In accordance with the revised data, the reduction rate has been recalculated.

40

33

32
29

30,00025,00035
30
25

22,453 22,658 23,420 23,829 23,958

20,00015,00010,000
5,000
0

2010

2011

2012
Base

Domestic and overseas operations

2013
Result2014
Result2015
Target(Fiscal year)

Energy consumption per unit of sales(Note 1) Energy consumption per unit of sales: Crude oil equivalent of energy consumption divided by sales(Note 2) Energy consumption in the three domestic plants of J-Power Systems Corporation, which was incorporated
as a consolidated subsidiary in ﬁscal 2014, for ﬁscal 2012 and 2013 has been added retroactively. In
accordance with the revised data, the energy consumption per unit of sales has been recalculated.

CSR Report 2015

Social Contribution[Overseas] Emission factor in each country for 2011 mentioned in CO2 Emissions from
Fuel Combustion Highlights 2013 (2013) by IEA

Energy consumption per unit of sales(kl/100 million yen)

37

Environmental
Preservation(Note 1) GHG emissions are calculated based on the Greenhouse Gas Emissions Accounting andReporting Manual Ver. 3.5 (2014) by the Japanese Ministry of the Environment andMinistry of Economy, Trade and Industry (except the emission factors, which are
mentioned below).

38

Human Resources633

eﬃciency. While we have focused more on energy saving
since the Great East Japan Earthquake, we will introduce the

1,200
1,000

depreciation of the yen, along with improvement of energy
Supply Chain

Emissions converted toCO2 equivalent(thousand tons-CO2e/year)

from the ﬁscal 2012 level in ﬁscal 2014. This signiﬁcantProducts & Services

as a result of shutdown of nuclear power plants.

Core
Category

We adopted a revised CO2 emission factor in fiscal 2014, andapplied it to the values in and after fiscal 2011 retroactively.
reflect the impact of the increases in GHG emissions in Japan

Business Outline

activities were promoted in the fiscal year to meet the target
and prevent global warming. As a result, we reduced GHG

Basis for Management

Reduction of Greenhouse Gas Emissions

64

Disclosure of Environmental Information

The speciﬁc measures are described below.
●

Measurement-based evaluation：We determine the number ofsteam and air leaks, the amount of energy loss in steam traps,
compressors' power consumption, etc. with measuring
instruments. The measurement results show the expected effects
of improvement efforts in a quantitative manner, and help makeactual improvements. In fiscal 2014, we also launchedmeasurement and analysis of power consumption during holidays
and at night, as well as the diagnosis in overseas affiliates.

●

C o o p e r a t i o n i n p r i o r i t y a r e a s：I n a d d i t i o n t o t h eequipment-related energy saving measures proposed in the energy
saving diagnosis program and other conventional initiatives,
measures to improve overall efficiency on intangible aspects
including production engineering and equipment utilization rate arealso promoted through close cooperation with divisions, business
units and Sumitomo Electric Technical Solutions, Inc.

●

Adoption of relevant technologies and use of external
e n g i n e e r i n g c o m p a n i e s：W e a r e i n t r o d u c i n g c o m m o ntechnologies such as the operation of high-efficiency pumps
and improvement of heat insulation in steam pipes into
relevant divisions. When special technologies are required, we
use external engineering companies for the introduction.

We are actively promoting disclosure of environmental information
We also respond to requests from external organizations for
supply of information.
In ﬁscal 2014, we started to publish emission data by category
for Scope 3 of CDP＊.

Greenhouse Gas Emissions in FY2014 (thousand tons-CO2e/year)
Scope １

184

Scope 2

1,272

Scope 3

2,732

Category

Description

1

Purchased goods and services

2

Capital goods

1,812
441

3

Fuel- and energy-related activities not included in Scope 1 or Scope 2

223
36

4

Upstream transportation and distribution

5

Waste generated in operations

45

6

Business travel

31

7

Employee commuting

69

15

Investments

75(Note 1) Scope 1: Direct emissions from the use of fossil fuels, etc. in our facilities(including SF6 and other greenhouse gases)
Scope 2: Indirect emissions from the use of electricity and steam supplied from outside our facilities
Scope 3: Sum of Categories 1 to 7 and 15

We will continuously work to meet the target of reducing both
energy consumption per unit of sales and the absolute amount by 4%
in fiscal 2015 and beyond by using the PDCA cycle to achieve thetarget of reduction of 20% from the fiscal 2012 level in fiscal 2017.

(Note 2) The data for Category 4 in the table above cover logistics data in Japan only.
(Note 3) Basic Guidelines on Accounting for Greenhouse Gas Emissions Throughout the Supply Chain,Ver. 2.2 of the Japanese Ministry of the Environment were referred to for the calculation.

Energy Saving Activities in Production Units
We are working to reduce wasteful use and improve efficiency
with the effects of ideas for energy efficiency improvement《 Energy Efficiency Improvement Measures to Reduce Energy Use 》
We work to meet the group-wide energy saving target of
reducing energy consumption per unit of sales by 4% per annum
from the ﬁscal 2012 level in the Action ECO-21 Campaign. Group
companies and divisions also strive to accumulate energy saving
eﬀects to meet the target of reducing the absolute energy
consumption by 4% from the ﬁscal 2012 level.
In ﬁscal 2014, while the target was reduction of 8% from theﬁscal 2012 level, we reduced energy consumption by 7.6%.
The number of subjects in the submitted ideas and cost
reduction eﬀect are presented below.

Number of Subjects in the Submitted Ideas andCost Reduction Eﬀect by Fiscal Year(million yen/year)
800
700
600

548

610

622

716

500

(subject/year)

363

400
300
200
100
0

800

227

611

549
166
2008

2009

2010

Cost Reduction Eﬀect

600

670
497
2011

328
2012

400

464
2013

200

2014

Offices other than manufacturing sites also
promote energy saving activities
We reduced greenhouse gas emissions per floor area in offices
by 19% from the fiscal 2012 level in fiscal 2014 while the target
was set to be reduction of 2%.
To promote the efforts, we have assigned a member and a vicemember of the Workplace ECO Activity Promotion Committee ineach workplace in the head offices, district offices and branch
offices. The committee members have taken energy saving
initiatives and formulated rules to promote and establish thefollowing activities:① Dressing cool in summer and warm in winter,to keep air conditioning moderate② Turning off all office lights during lunch break③ Turning off lights and air conditioners in meeting rooms andtoilets when not in use④ Introducing economy mode for PCs⑤ Turning off or down unnecessary lights etc.

Energy Saving Activities in Households

871

900

Energy Saving Activities in Offices(Fiscalyear)

0

Number of Subjects in the Submitted Ideas《 Specific Measures 》
To promote energy saving activities of Group companies anddivisions, we have taken such measures as energy saving evaluation,measurement-based evaluation, adoption of relevant technologies
and use of external engineering companies, and proposed new
ideas. In ﬁscal 2014, in addition to proposal of ideas, we engaged incooperation in priority areas, which was conducted with divisions topromote the activities until remedial measures were actually taken,
and enhanced other initiatives by conducting the PDCA cycle toensure improvement of the eﬀectiveness.

Sumitomo Electric Version of
My family's Minister of the Environment - Eco Family
The Sumitomo Electric Group worked for Eco-Life Activities topromote energy saving in households from fiscal 2008, and madeefforts to meet the target of reducing CO 2 emissions fromhouseholds by 5,000 tons per year until fiscal 2012. As a result,CO2 emissions decreased by approximately 9,600 tons
year-on-year in fiscal 2012.
While we have not set a numerical target for the reduction of
CO2 emissions in households since fiscal 2013, we maintain thewebsite for Sumitomo Electric Version of My family's Minister ofthe Environment - Eco Family, which is used as a household
eco-account book and a forum to post ideas on energy saving
efforts. We make use of this website to encourage employees tomake energy saving efforts in households by, for example,
commending those who are actively committed to the efforts
through the website and providing foliage plants and other prizes
from Sumiden Friend, Ltd. to the participants based on the points
obtained from the use of the website.

Glossary ＊CDP (former name: Carbon Disclosure Project)

65 CSR Report 2015

In CDP, an international NPO, institutional investors collaborate to implement a project that requests
companies to establish strategies against climate change and publish data on greenhouse gas emissions.

Basis for Management

Power Saving REPORT

Researchers in the WinD Lab madeconcerted efforts to save energy ina cross-departmental way

Yasuhiro Nagatani

Masashi Yoshimura

Toshinobu Takeda

Deputy Section Chief,
1st Section,
Osaka Support Group,
Support Department,
R&D Planning &Administration Division

Section Chief,
Osaka Support Group,
Support Department,
R&D Planning &Administration Division

General Manager ofSupport Department andManager of
Osaka Support Group,
R&D Planning &Administration Division

Leader, R&D Maintenance Group,
3rd Technology Section,
Osaka Plant Department,
Plant Division, Sumitomo ElectricTechnical Solutions, Inc.

Intermittent stop of the outside
air treating air conditioner

Thermal insulation of
steam pipes

the clean room. While power used in the clean room represents

institutes of 10 divisions, as well as intellectual property

approximately 30% of the total power consumption in thedepartments, with roughly 700 workers. While energy saving

WinD Lab, air conditioning is essential in the room, where dust

systems were already in place in the building at the time of its

has to be removed. It was a difficult challenge but we tried toconstruction in 2010, an energy saving diagnosis conducted on

solve it with a sense of responsibility. We actually stopped

holidays in April 2014 revealed an issue that energy

operation of the clean room to verify the result because it has

consumption dropped by only 30% on holidays in comparison

direct impact on the quality of products. We steadily repeatedwith weekdays.

the process of collecting micron-size dust and analyzing it andIt was difficult to promote energy saving in the R&D units as

acquired know-how for energy-saving operation of the room.

they are composed of various organizations. Urged by theAs the third measure, we installed thermal insulation materials

wasteful use presented in a numerical form, however, energy

to steam pipes, which was performed with the energy andsaving activities involving all divisions were launched on a

power saving funds prepared in Sumitomo Electric.

cross-sectoral basis.

As a result, while the target was reduction of 133 MWh/year

We saved energy mainly through three initiatives. Firstly, weor 1.0% from the fiscal 2013 level, we reduced energy

examined the operating hours of the outside air treating air

consumption by 173 MWh/year or 1.3% from the fiscal 2013

conditioner. It used to be operated at full capacity except longlevel in fiscal 2014.

holiday seasons for a reason related to temperature, humidity,

In addition to the teamwork of the Osaka Works Environment

and CO 2 concentration. Based on measurement tests overCommittee, enthusiasm of the researchers to pursue energy

about one and a half months, we achieved the intermittent stopsaving also contributed to the success. We will keep workingof the device at night and on holidays. The measurement wastogether to save energy so that we can accelerate development

conducted with a wireless temperature sensor, a proprietaryactivities and improve energy efficiency at the same time.
Hiroyuki Watanabe Section Chief, Osaka Support Group,
Support Department, R&D Planning & Administration Division
Shigeru Masuda Assistant General Manager, Power System R&D Center
Yasuhiro Shimizu Assistant Manager, Sumitomo Electric Intellectual Property & Technology Center, Ltd.
Hiroyuki Fujikawa General Manager, Unit R&D Division, Advanced Automotive Systems R&D Center
Kenichi Hirotsu Assistant Manager, Power System R&D Center

Supply Chain(Front row,from left)

Products & Services

The second initiative was reduction of power consumption in

Works. The WinD Lab accommodates research centers andCore
Categoryenergy saving technology of Sumitomo Electric.

fiscal 2014 in the WinD Lab, a laboratory building at Osaka

Group's CSR Activities

This report introduces energy saving activities performed inGovernance

Akira SatoBusiness Outline

WinD Lab

Masashi Yoshimura General Manager of Support Department and Manager of
Osaka Support Group, R&D Planning & Administration Division
Yasuhiro Nagatani Section Chief

Akira Sato Deputy Section Chief

Eiji Ishida Deputy Section Chief

Kenji Kiire Assistant Manager

Human Resources(Rear row,from left)

Osaka Support Group, Support Department, R&D Planning & Administration Division
Toshinobu Takeda Leader, R&D Maintenance Group
Osaka Plant Department, Plant Division, Sumitomo Electric Technical Solutions, Inc.

C S R VO I C E

Keiji Handa Assistant Manager, Itami Tool Engineering Center, Application Development Department, Sumitomo Electric Hardmetal Corp.

CSR Report 2015

Social Contribution

I completely electrified my house at the proposal of my wife in 2007, and also introduced photovoltaic
power generation. Thanks to the effect of the solar panels and other energy saving efforts in our daily life,
my family has reduced CO2 emissions by 3,100kg per year. I make it a habit to keep an eco-account bookand post comments on Everyone's Ecology of the Sumitomo Electric Version of My family's Minister of theEnvironment every month. By posting comments on the website, I think I can develop myself and also help
encourage others to promote environmental activities. The comments describe my efforts, especially what
we can do specifically in each of the seasons, with humor, including how to save water for bathing andother ideas on bathing, as well as green curtains and home garden with planters, and ideas on the time ofusing heaters and air conditioners to improve efficiency. I will continue Eco-Life Activities.

Environmental
Preservation〈Energy saving in households〉Let s continue the Eco-Life Activities

66

Reduction of CO2 Emissions in Logistics

Promotion of Modal Shift

We are committed to reduction oftransportation distance and promotion of modal shift

We increased the use of railroad transportation
through coordination with our customers

Per unit CO２ emissions in the Sumitomo Electric Group as a wholein Japan (Note1) in fiscal 2014 were reduced by about 3.2% fromthe fiscal 2013 level.
Sumitomo Electric reduced CO２ emissions in logistics throughvarious measures. For example, trucks were replaced by trailers in
the transportation of copper wire rod for export to the port of
shipment, which improved the efficiency of our truck
transportation as a whole. An affiliate in Itami relocated processes
for processing high-strength steel wire, which used to be
performed in Amagasaki, to Itami in order to reduce transportation
between the processes. An affiliate in Toyama started to use
Fushiki-Toyama port in the Shinminato area as the port of
shipment for export, instead of ports in the Hanshin area (Note2), toshorten the distance of domestic transportation.
In the meantime, Sumitomo Wiring Systems, Ltd. improved
transportation efficiency by using railroad transportation fordelivering products from plants in Kyushu to their destinations in
the Tohoku region, which used to be transported by ferry, as well
as for supply of parts from the logistic center in the Kanto region
to plants in the Tohoku region, which used to be delivered bytruck.
We will continue the group-wide efforts to reduce CO２ emissions
from transportation.

Sumitomo Electric is active in promoting modal shift mainly in thecase of heavy and long-distance (500 km or longer) freighttransportation.
In fiscal 2014, the modal shift rate remained almost the same as
the previous fiscal year.
There are some reasons for these situation. One reason isdecrease of truck transportation by the reduction of transportation
between manufacturing processes of Sumitomo (SEI) Steel Wire
Corp. and another one is the obtain of new customers which issending our products by train from affiliate (a group company) in
Muroran of Sumitomo (SEI) Steel Wire Corp. and other one is we
could not take the new transportation of modal shift for railroad.

(Note1) Group-wide per unit CO2 emissions in Japan
Sumitomo Wiring Systems, Ltd. adopts CO2 emissions per sales amount as
the basis for the calculation while other group companies use CO2 emissions
per cargo transport (t-km). Therefore, the weighted average of each year-on-year
CO2 emission rate is calculated based on the CO2 emissions.
(Note2) Hanshin area
Area around Osaka and Kobe

Modal Shift Rate of the Sumitomo Electric Group by Year
(Excluding Sumitomo Wiring Systems, Ltd.)
（％）
32.0
31.0

30.5

30.3

30.4

2011

2012

31.8

31.8

2013

2014 (Fiscal year)

30.0
0

2010

(Note) Boundaries of data collection: Sumitomo Electric + 37 manufacturing companies
in Japan (excluding Sumitomo Wiring Systems, Ltd.)

Modal shift rate (%) =Cargo transport by rail or ship (ton-km)
×100
Total amount of cargo transport in Japan (ton-km)

Sumitomo Electric has acquired certification as a company
engaged in the initiatives of Eco Rail Mark＊ from theRailway Freight Association.

Per Unit CO2 emissions by Year

Eco Rail Mark

(tons-CO2/million ton-km)(tons-CO2/100 million yen)

105.0
100.0

5.00

99.4

99.7

98.0

98.6

97.9

4.50

95.0
4.00

90.0

4.23

4.13

3.95

85.0

2010

2011

2012

3.50

3.77

0

2013

3.52

0

2014

(Fiscal year)

Sumitomo Electric Group (Sumitomo Electric + 37 manufacturing companies
in Japan (excluding Sumitomo Wiring Systems, Ltd.))
Sumitomo Wiring Systems, Ltd.

CO2 Emissions from the Sumitomo Electric Group(Excluding Sumitomo Wiring Systems, Ltd.) by Year
Fiscalyear

Total cargo transport(million ton-km)

CO2 emissions(tons-CO2)

CO2 emissions per cargo transport(tons-CO2/million ton-km)

2010

228.6

22,720

99.4

2011

214.1

20,986

98.0

2012

208.0

20,734

99.7

2013

217.0

21,384

98.6

2014

210.6

20,62297.9(Note 1) Boundaries of data collection: Sumitomo Electric + 37 manufacturing companies in Japan(excluding Sumitomo Wiring Systems, Ltd.)(Note 2) CO2 emissions are calculated on an improved ton-kilometer basis + a fuel-eﬃciency basis.

Improvement of Transportation Efficiency
by Affiliates in China
A shuttle service was introduced to improvetransportation efficiency in eastern area of China
Sumitomo Electric Management (Shanghai) Co., Ltd. operates a
shuttle between our affiliate in Suzhou, Jiangsu Province andShanghai once a day to transport freight of different companies
with same trucks, which had conventionally been carried
separately by each company, to reduce the number of the trucks
operated for transportation.
While the service was started with transportation of freight of
one affiliate in 2011, the number of the affiliates using the service
grew to three in fiscal 2013, Number of the trucks used for transportation
which reduced the number of between Suzhou and Shanghai by yeart r u c k s o p e r a t e d b y t h e (No. of trucks/month)79
80
companies by about 70%.
52
As a result, CO emissions 60
2decreased by 0.7 tons of permonth (approximately 24%).

Sales amount(100 million yen)

CO2 emissions(tons-CO2)

CO2 emissions per sales(tons-CO2/100 million yen)

2010

3,761

15,903

4.23

2011

3,815

15,759

4.13

2012

4,127

16,290

3.95

2013

4,423

16,653

3.77

2014

4,419

15,5703.52(Note 1) CO2 emissions are calculated on an improved ton-kilometer basis + a fuel-eﬃciency basis.
(Note 2) The sales amounts of Sumitomo Wiring Systems, Ltd. used for this calculation exclude
the adjustments made at the end of each ﬁscal year, and are therefore notnecessarily equivalent to the sales amounts published by Sumitomo Wiring Systems.

26

20
0

2011

SuzhouCO2 Emissions from Sumitomo Wiring Systems, Ltd. by Year
Fiscalyear

40

Affiliate A

2012

2013

(Fiscal year)

Shanghai

Shuttle between
Suzhou andShanghaiProcessing subcontractor

Domestic customer
Affiliate B

1 service/day
i /d×Operated on
26 days/monthAffiliate C

Parts manufacturer

Pudong Airport

Glossary ＊Eco Rail Mark67 CSR Report 2015

A certiﬁcation mark awarded by the Ministry of Land, Infrastructure, Transport and Tourism, Government of Japan. The use of the mark is allowed only for
products or companies that use rail transportation, which generates relatively less CO2 emissions and is therefore environmentally friendly, in accordancewith designated criteria. The mark included in packages and advertisements of products serves as a judgment standard for customers' purchase decisions.

Promotion of Resource Conservation and Recycling

Amount of Waste by Type in Fiscal 2014 (in Japan)
Waste landﬁlled or incinerated
without heat recovery

We are promoting resource saving and recycling

Total : 21

《 Promotion of Zero Emissions 》

Waste glass and ceramics

tons/year

Waste paper

group companies as a whole in fiscal 2009, and have worked
to decrease the rate to 0.3% or less since fiscal 2013.

Waste plastics

tons/year

tons/year
Amount ofwaste

543,811

4

tons/year

2
1

Slag

Material recycling

3

Others25,241 tons/year

Total amount of recycled waste: 36,568 tons/year

7,593

Waste alkali

to recycling of the remaining waste that is difficult to recycle,
as well as the waste newly generated from new products,

6,479

Sludge5,975

Waste acid

5,426

Waste plastics

Amount of waste incinerated without heat recovery+ Amount of landﬁll waste
Amount of industrial waste+ Amount of general waste

×100

Waste metal

3,485

Waste paper

3,209
2,683

Waste oil

(Note) The amount of waste includes that of what used to be waste but was converted
into valuable materials through internal eﬀorts after ﬁscal 2001.

Governanceetc., to maintain this level.

Zero emission rate (%) =11,327

6

SludgeThe zero emission rate in the entire Group in fiscal 2014 was
0.05%, which met the target as in the previous fiscal year.
While most of waste is recycled, we will be also committed

Valuable materials

7,222

Business Outline

In our efforts for the zero emission rate, we achieved thetarget of maximum 1% zero emission rate in the domestic

Heat recovery

Basis for Management

Efforts to Achieve Zero Emissions andReduce the Amount of Waste (in Japan)

Wood waste

658

Waste glass and ceramics

436

Others624《 Reduction of the Amount of Waste 》

Reduction of the Waste to Be Incinerated
Without Heat Recovery or Landfilled (Overseas)
We will continue to promote our activities toreduce the zero emission rate
We are committed to resource saving and recycling in overseas
Group companies with the target of reducing the zero emission
The zero emission rate in fiscal 2014 was 12.3%. While thetarget was not achieved, the rate was reduced by 1.5 points
promotion of screening general waste in some of the overseas
Group companies to recycle the waste incinerated withoutmaterials. We will continue to encourage the overseas Group

Zero emission rate (%)

2companies that have not met the target zero emission rate to

0.5

1

reduce the amount of waste incinerated without heat recovery0or landfilled in cooperation with staff in their parent divisions.

60
50
40
30
20

0.1

0.1

0.05

44.4

45.9

45.1

41.9

43.8

As in the cases of general waste in Southeast Asia and sludge

10.0

10.5

11.0

11.0

11.3

in China, we are facing a problem that waste cannot be

34.2

35.4

34.1

30.9

32.5

0.2

0.1

0.0

0.0

0.0

2010

2011

2012

2013

2014

processed around the sites due to shortage of recycling

10

Valuable materials
Zero emission rate

Recycled wastecompanies. In US facilities, recycling can involve a cost increase
when they transport waste to a remote recycling company(Fiscal year)

although there is a landfill site in a closer location.

Incineration and landﬁll wastes

Amount of Waste and Zero Emission Rate (Overseas)
Amount of waste(thousand
16.0
tons/year)

Zero emission rate (%)

13.7

13.6

13.8

12.3

4.7
9.4

50
40

34.5

35.5

34.1

30.9

0

60
50

5

40

10

30

32.5

10

10

0

0

Amount of waste

2011

2012
Base

2013

2014

47.4

27.6

25.4

12.3

15.5

56.0

32.6

29.6

14.6

18.7

20

20

2010

47.5

54.6

(Fiscal year)

Reduction rate from the ﬁscal 2012 level(Note 1) The amount of waste from the three domestic plants of J-Power Systems
Corporation, which was incorporated as a consolidated subsidiary in ﬁscal
2014, has been added retroactively. In accordance with the revised data, thereduction rate has been recalculated.

33.2

29.3

7.6

6.5

7.4

7.7

8.8

2010

2011

2012

2013

2014

Valuable materials
Zero emission rate

Recycled waste

0(Fiscal year)

Incineration and landﬁll wastes(Note 1) The amount of incineration and landﬁll wastes and zero emission rate for ﬁscal
2012 and 2013 have been corrected with the improvement of accuracy.

CSR Report 2015

Social Contribution

30

Reduction rate (%)

0

71.3

70

Waste Reduction Rate (Excluding Valuable Materials) in Japan
Amount of waste (excluding valuable materials)(thousand tons/year)

20
10

80

Environmental
Preservation(Note 1) The amounts of valuable materials, recycled waste and incineration and landﬁll
wastes from the three domestic plants of J-Power Systems Corporation, which
was incorporated as a consolidated subsidiary in ﬁscal 2014, for ﬁscal 2012
and 2013 have been added retroactively. In accordance with the revised data,
the zero emission rate has been recalculated.

Human Resources00.1

Supply Chain

Amount of waste(thousand tons/year)

Products & Services

from the previous fiscal year. This improvement was a result ofCore
Categoryrate to 5% or less from fiscal 2010.

heat recovery or landfilled or convert such waste into valuable

Amount of Waste and Zero Emission Rate (in Japan)

Group's CSR Activities

We make efforts to reduce the amount of waste with thetarget of reducing the absolute amount by 1% per year aspart of our activities in the Action ECO-21 (Phase Ⅴ)
Campaign from fiscal 2013. While production growth tends
to be accompanied by an increase in the amount of waste,
we achieved the reduction of 4.7% from the fiscal 2012 levelin fiscal 2014, which exceeded the target.
To reduce the amount of waste, we promote conversion of
the waste into valuable materials through separation andsearch of uses, and also focus on reduction of defects andreview of the process that caused defects in production sites,
which are fundamental activities for manufacturing, as well as
reuse of the waste generated within the company andreduction of waste volume.

68

Water Use Reduction

Water Consumption and Reduction Rate per Unit of Sales(in Japan and Overseas)

We increased absolute water consumption but
reduced the volume per unit of sales

Consumption (thousand m3/year)

Reduction rate perunit of sales (%)

0
23.2

16,000consumption as an action item since ﬁscal 2008. In ﬁscal

14,0002014, while water consumption increased in association with

12,000

the growth of our overseas production, we reduced the

10,000volume per unit of sales by 23.2% from the ﬁscal 2012 level.

8,000

0
5
10
15
20
25

17.3

18,000We have been actively committed to reducing water

11,76911,98012,172

11,835

12,381

5,268

5,694

5,957

5,757

6,466

6,501

6,286

6,215

6,078

5,915

2010

2011

2012
Base

2013

2014

6,000

As water leakage accounts for a surprisingly high percentage

4,000

of the water consumption, we are making steady eﬀorts for

2,000

prevention of water leakage and management of water use.

0

We are also committed to reduction of water consumption
through collective use of gas washing columns, improvement(Fiscal year)

Consumption in Japan
Consumption in other countries
Reduction rate per unit of salesof eﬃciency of water-cooled air conditioners and installationof electrolytic scale removal systems, in parallel with eﬀorts(Note) Reduction rate per unit of sales for ﬁscal 2013 has been adjusted retroactively to
improve the accuracy.

to reduce energy consumption in these facilities, as well as

Water consumption is calculated as the sum of the consumption of city water,industrial water and groundwater.

the reuse of the wastewater that used to be discharged.

We Received the METI Minister's Prize

Main items converted into valuable materials〈 Recognition of distinguished people in promoting 3Rs 〉

Type

Use

At the annual ceremony organized by the 3Rs Promotion Council to

Waste acid (waste plating solution)

Recovery of metalcommend distinguished people in promoting 3Rs, Sumitomo Electric

Sludge (containing metal)

Recovery of metal

received the METI Minister's Prize for fiscal 2014.

Waste plastic (waste from dismantling of cables)

Recycled material

Conﬁdential documents

Papermaking material

Waste paraﬃn

Fuel

Sumitomo Electric Group, which is expanding its business locations

Waste oil and solvent

Recycled solvent

through division of business activities into branch companies, as well

Waste glass

Material of ﬁreresistant materials

Waste bricks generated at the time ofrepairing furnaces

Recovery of metal

The prize was awarded in recognition of our group-wide global 3R
promotion activities carried out under the Action ECO-21 Campaign.
This initiative has been developed since fiscal 2003 throughout theas overseas development.
We are committed to activities to reduce the zero emission rate inJapan and overseas, lower the use of product packaging materials,
reduce the amount of waste through using it as valuable materials,
reuse waste liquid and solvent and reduce unneeded materials bydecreasing loss of raw materials andhalf-finished products.
The targets are revised every two or

Waste plastic

Waste glass

Nickel sludge

Waste acid

three years in consideration of the
progress in the achievement, social
circumstances and other factors tovitalize the activities.

Waste Segregation in Overseas Affiliates（Municipal Solid Waste in Malaysia）

Thorough segregation ofwaste in plants and oﬃces

Sumitomo Electric Sintered Components (M) Sdn, Bhd.（SESC）
SESC, which manufactures sintered products
in Malaysia, used to send general waste into
landfill.
The general waste storage of the company
was receiving empty cans and waste paper
as well, as of fiscal 2009. In fiscal 2012,

As of November 2009

boxes for waste segregation were installed in the plants and offices
to thoroughly sort waste paper, waste cardboard, empty cans,plastic, waste cloths, fabric gloves, plastic gloves and general waste.
While 12 tons per month of waste was sent to landﬁll in ﬁscal 2012,
the amount was reduced to 4 tons per month in ﬁscal 2014.

69 CSR Report 2015

Waste to be
sold

Waste to be
sold

Waste to berecycled

Waste to be
landﬁlled

Reduction of the Release of Harmful Chemical Substances
Chemical Substance Management System

We are working to reduce atmospheric VOC emissions
throughout the Group including overseas affiliates

We have established an original system to unify
the management of chemical substances

The Sumitomo Electric Group has been committed to

The Sumitomo Electric Group established a chemical
management system, and started the management of

discontinuing the use of trichloroethylene and other hazardous
chlorinated volatile organic compounds (VOCs) designated as
Law. As a result of the commitment, the use of thesechlorinated VOCs in the Group was discontinued in ﬁscal 2011.
The Group has also promoted activities to cut the atmosphericrelease of any VOC whose annual emissions from a site were 1
ton or more in Sumitomo Electric and its aﬃliates in Japan or 5
tons or more in overseas aﬃliates (Note).
2% from the ﬁscal 2012 level and made eﬀorts to satisfy it.
Despite the eﬀorts, due to production growth in overseas

Itami and Yokohama, and our affiliates in the Works in fiscal
2011. The system is also used to collect data for reporting
under the PRTR Law.
In fiscal 2012, some of the domestic affiliates outside thethree Works also launched the operation of this system,
which enabled the search of the companies using poisonousand deleterious substances and SDS (Safety Data Sheet)concerning all poisonous and deleterious substances used inaﬃliates, the emissions in ﬁscal 2014 increased by 8.0% fromaffiliates in Japan.
We will continue our efforts to enhance the management of

the ﬁscal 2012 level to 297 tons.

chemical substances used in the Group.

(Note) The Sumitomo Electric Group (excluding the Sumitomo Wiring Systems, Ltd.)
covers the sites that are required to identify the emissions by law.

Soil and Groundwater Remediation
We are continuously conducting soil andgroundwater remediation and groundwater monitoring

The whole Group, including overseas affiliates,
is submitting reports in accordance with the applicable laws

We disclosed the pollution status of three major Works (Osaka,
Itami and Yokohama) in August 2001. At those three Works andother domestic sites where pollution has been identified throughour surveys conducted thus far, we are continuing soil andsubstance management system developed by the Company,

groundwater remediation by soil replacement, groundwatermeasure the monthly generation amount of chemical

pumping and soil gas absorption. We also conduct groundwater

substances speciﬁed by the PRTR Law＊, and calculate themonitoring on a regular basis, and have confirmed that theamount of these substances released and transferred in orderpollution has not spread outside the sites.

to report annually in accordance with the law. A total of 44
plants of Sumitomo Electric's Osaka and Yokohama Works andSumitomo Electric Group's total release and transfer of
PRTR-designated substances in Japan were 59 tons and 143
tons, respectively.
A total of ﬁve plants of our four overseas aﬃliates submitted
reports to regulatory agencies in accordance with therelease and transfer of designated chemical substances
reported in 2014 (calendar year) were 14 tons and 28 tons,
respectively.

The aluminum alloy manufacturing facility and its exhaust gas
purification facility at Sumitomo Electric Toyama Co., Ltd. aresubject to the Law Concerning Special Measures against
Dioxins. We have ensured that emissions from these facilities
remain within regulated standards.
At present, the Sumitomo Electric Group produces noproducts using asbestos.

Release

Release and Transfer (tons)

Into
air

169

Toluene23.0

Phenol

6.6

150

143

134

Nickel compounds

0.0

119

Cresol

100

100

95
81
63

66

59

50

0

2011

2012

2013

2014 (Fiscal
year)

0.0

0.0

0.0

23.0

0.0

9.0

9.0

32.0

0.0

0.0

0.0

6.6

0.0

15.2

15.2

21.8

0.2

0.0

0.0

0.2

0.0

20.4

20.4

20.6

5.5

0.0

0.0

0.0

5.5

0.0

12.4

12.4

17.9

Dichlorobenzene

3.8

0.0

0.0

0.0

3.8

0.0

11.0

11.0

14.8

Zinc compounds (water-soluble)

0.0

0.0

0.0

0.0

0.0

0.1

13.0

13.1

13.1

Lead

0.0

0.0

0.0

0.0

0.0

0.0

12.0

12.0

12.0

Xylene

3.0

0.0

0.0

0.0

3.0

0.0

7.3

7.3

10.3

1-bromopropane

7.2

0.0

0.0

0.0

7.2

0.0

0.9

0.9

8.1

Molybdenum and its compounds

0.0

0.8

0.0

0.0

0.8

0.0

5.8

5.8

6.6

33 other substances

8.7

0.2

0.0

0.0

8.9

0.5

35.9

36.3

45.2

Total

57.8

1.2

0.0

0.0

59.0

0.6 142.9

143.4 202.4

Transfer

・The amounts are calculated in accordance with PRTR Release
Estimation Methods Manual, version 4.1 (2011) by the Ministryof the Environment and the Ministry of Economy Trade andIndustry of Japan.

TotalamountTotaltransferInto
landﬁll(Unit: tons)

ReleaseTransfer

Chemical substance

Into
air

Into
water

Into
soil

Into
landﬁll

Dioxins

1.2

0.95

0

0

By
Total
By
release sewage disposal
2.15

0

2

Total
transfer2

Totalamount4.15

Social Contribution

2010

ReleaseTransfer
By
Total
By
release sewage disposal

Into
soil

200

Into
water

Environmental
Preservation

Chemical substance

Human Resources

Release and Transfer of Chemical Substances Speciﬁed in the PRTR Law

Supply Chain

applicable local laws equivalent to the PRTR Law. The total

We continue to control the facilities subject to the law
We manufacture no products using asbestos

Products & Services

Measures against Dioxins and Asbestos

27 group companies submitted such reports for ﬁscal 2014.

Core
Category

Sumitomo Electric and its domestic aﬃliates, using the chemicalGroup's CSR Activities

Release and Transfer of Chemical
Substances Specified in the PRTR Law

Release and Transfer of Chemical Substances
Speciﬁed in the PRTR Law by Year

GovernanceIn ﬁscal 2014, we set the target of reducing VOC emissions bypoisonous and deleterious substances and PRTR-designatedsubstances in Sumitomo Electric's three Works in Osaka,

Business Outline

substances requiring priority action in the Air Pollution Control

Basis for Management

Reduction of VOC Emissions(Unit: mg-TEQ)(Note) Scope of data collection: Sumitomo Electric + PRTR obligatory companies among its domestic aﬃliates

Glossary ＊ PRTR Law
Act on Conﬁrmation, etc. of Release Amounts of Speciﬁc Chemical Substances inthe Environment and Promotion of Improvements to the Management Thereof.

CSR Report 201570

Expansion of Environmentally Conscious Products
Expansion of Environmentally Conscious Products
We are actively promoting assessment anddevelopment of environmentally conscious products
Along with reduction of environmental impact from our

By the end of fiscal 2014, a total of 213 items have beenregistered as Eco-products. The sales ratio in fiscal 2014
was 44%.

《 Anti-Global Warming Products 》
In this system, we register the Eco-products that especiallybusiness activities, we are striving to increase environmentallycontribute to the reduction of CO 2 emissions from society,conscious products as an initiative stated in ourand calculate and disclose the reduction effect, in order toenvironmental policy.

contribute to the prevention of global warming.

Our products are assessed to determine their levels of social

The products contributed to the reduction of CO2 emissions

and environmental contribution, and classified into, forby a total of 63 thousand tons in fiscal 2014.

example, Eco Mind products, Eco-products and anti-global
warming products based on the levels. The assessment
results are also used for development of new products.

《 Eco Mind Products 》

Percentage of Eco-Products in Sales and Contribution to
the Reduction of CO2 Emissions
Percentage of Eco-products in sales (%)

We perform environmental assessment of products when

50
40developing new products, as well as when making major

30

design changes to existing products. The products having

20

undergone product assessment are registered as Eco Mind10

products in the Sumitomo Electric Group.

0

40

41

44

Contribution toemission reduction(thousand tons-CO2/year)

90

32

80

57

59

70

63

60
50

43

40

By the end of fiscal 2014, a total of 654 items have been30

registered as Eco Mind products.

20
10《 Eco-Products (Eco Symbol Program) 》
Among Eco Mind products, the products with particularly
outstanding environmental features are examined inaccordance with our Eco Symbol Program, which is based on
ISO14021, and those that meet the criteria are certified as
Eco-products. Through this system, we aim to promote
development of environmentally conscious products andstrive to penetrate the market with them.

0

2011

2012

2013

2014

(Fiscal year)

・ Calculation method
The percentage of Eco-products in sales is calculated as the value ofthe shipments* of the products certiﬁed Eco-products divided by
the total value of shipments*.
(* Shipments are those from manufacturing departments in Japan. However,they exclude shipments from electronic conductor departments, which mainly work
to supply intermediate goods within the Group.)
For methods to calculate contribution to the reduction of CO2 emissions,
see Examples of Eco- Products in P72.

Eco-Products Report

We will further extend the tool life of CBN＊
cutting grades, which contain rare metals,
to save natural resources on the earth

CBN grades for the machining of
hardened steel(BNC2010 and BNC2020)

Katsumi Okamura

Yusuke Matsuda

Manager
CBN/PCD Materials Development Group
Super Hard Materials Development
Department

CBN/PCD Materials Development Group
Super Hard Materials Development
Department

Sumitomo Electric Hardmetal Corp.

This report introduces BNC2010 and BNC2020. We havedeveloped these CBN grades for the machining of hardened
steel to achieve higher machining accuracy and longer life thanconventional grades. They were registered as Eco-products in
the Sumitomo Electric Group, and also certified asenvironmentally conscious products by Japan Cutting &Wear-resistant Tool Association in 2015.
CBN grades, which are used for the machining hardened steel,contain tungsten and other rare metals in their substrates.
Extension of the life reduces the consumption of such precious

resources of the earth. We have successfully extended the lifeof both BNC2010 and BNC2020 by 80% in comparison withexisting products. In addition, BNC2010 is so environmentallyfriendly that it can avoid the generation of waste fluid byachieving better surface roughness＊ enables change fromgrinding, which generates waste fluid, to cutting. BNC2020,
which is designed for high efficiency machining, candramatically reduce the machining time and thereby contributeto reduction of power consumption and CO2 emissions in theentire machining operation.
With the extended life of the CBN grades, which are essential
tools for manufacturing, we contribute to environmental
conservation through lower use of precious resources as wellas energy saving and reduction of CO2 emissions. As pioneersof the machining of hardened steel, we would like to makecontinuous contributions to the development of CBN gradeswith even longer life, higher efficiency and achieving bettersurface roughness.

Glossary ＊CBN71 CSR Report 2015

The grades have high wear
resistance and realize
better surface ﬁnish

CBN is a cubic structure of boron (B) and nitrogen (N), which are next to carbon in the
periodic table of the elements. CBN grades are machining tools that are even harder thancemented carbide tools and can be used to machine hardened steel with high accuracy.

＊Surface roughness
Finishing precision of machined
surfaces. Surface roughness isexpressed in μm.

Basis for Management

Examples of Eco- Products
Contributing to energy saving in basestations with compound semiconductor
power amplifying elements

Contributing to the improvementof fuel eﬃciency of cars bytrimming the weightContributing to resourcesaving by extending theservice life

CELMET® (porous metal)

GaN HEMTLightweight wire harness

Sumitomo Electric Toyama Co., Ltd.

Sumitomo Electric Device Innovations, Inc.

Sumitomo Wiring Systems, Ltd.

Cemented carbide tools withlonger service life

The contribution is calculated by multiplying
the amount of CO2 emissions reduced witha hybrid car (estimated based on
Automobile Fuel Eﬃciency List (March2014) published by the Japanese Ministryof Land, Infrastructure, Transport andTourism and other data) by the contribution
rate of CELMET (estimated by Sumitomo
Electric).

The contribution is calculated by estimating
the reduction of CO 2 emissions achieved
with the eﬀect of the device in the
improvement of eﬃciency at a 2.6 GHz basestation based on the criteria set by
Sumitomo Electric.

The contribution is calculated by estimating
the improvement of fuel eﬃciency of a carachieved by reducing the weight of the wire
harnesses (based on criteria in Guidelines
for Environmental Factors for Products(second edition) of Japan Auto Parts
Industries Association).

Business Outline

Contributing to the improvement offuel eﬃciency of hybrid cars aselectrodes of secondary batteries

Sumitomo Electric Hardmetal Corp.

GovernanceThe contribution is calculated based on
resource saving by the extension of theservice life and reduction of CO2 emissions
from the production using the Embodied
Energy and Emission Intensity Data for Japan
Using Input-Output Tables of National
Institute for Environmental Studies.

Activities to Conserve Biodiversity
Basic Approach

Relations with Business Activities and Response

Beneﬁts
Wood (paper), Water, etc.

Renewable resources

Energy resources

Renewable resources

Wood (paper), Water, etc.

Energy resources

Energy resources

Crude oil, Natural gas, etc.

Aspects/Impacts
Air pollution
NOx, SOx, VOCs, etc.

Air pollution

Water pollution

BOD, COD, SS, etc.

Climate change

Climate change

CO2, SF6, etc.

Air pollution

Aspects/Impacts
NOx, SOx, VOCs, etc.

Water pollution

BOD, COD, SS, etc.

Crude oil, Natural gas, etc.

Beneﬁts
Crude oil, etc.

Aspects/Impacts
NOx, SOx, VOCs, etc.

Migration of species
CO2, etc.

Products & Services

Beneﬁts
Copper, Iron, Crude oil, etc.

Mineral resources

The Sumitomo Electric Group contributes to conservation of
biodiversity through business activities, as well as environmental
activities in the Action ECO-21 campaign, as mentioned below.
For example, our efforts to promote zero emission activities
prevent or minimize the expansion of waste landfill sites, andthereby help provide habitats for wildlife.

Core
Category

The Sumitomo Electric Group aims to procure raw
materials and design and manufacture products in a waythat protects the ecosystem and maintains sustainable
resource use. We also seek to contribute to theenvironment preservation on a global basis by providing
high-performance products.

Group's CSR Activities

The Action ECO-21 Campaign is linked to biodiversity via activities to conserve the ecosystem

Loss of habitats

Supply Chain

Migration of species
Climate change

CO2, PFCs, etc.

Design and production of
Sumitomo Electric Group products
Energy Saving Task Committee
Zero Emission Task Committee● Environmental audit● Action ECO-21●

Procurement of raw materials●

CSR Procurement Guidelines
SEI Guidelines forGreen Quality Purchases

Business activities of theSumitomo Electric GroupLand use(construction of factories, green area)

Climate change

CO2, etc.

Volunteer activities●

Cleanup of areas around factories,
commuting routes and nearby ponds

Chemical Management
Task Committee● Action ECO-21

Beneﬁts
Wood (paper), Water, etc.

Renewable resources

Crude oil, Natural gas, etc.

Energy resources

Renewable resources
Energy resources

Beneﬁts
Wood (paper), Water, etc.
Crude oil, Natural gas, etc.

Aspects/Impacts
Air pollution
NOx, SOx, VOCs, etc.

Aspects/Impacts
Air pollution
NOx, SOx, VOCs, etc.

Water pollution

BOD, COD, SS, etc.

Water pollution

BOD, COD, SS, etc.

Climate change

CO2, PFCs, etc.

Climate change

CO2, PFCs, etc.

※ SEI Business Creates, Inc. (SBC) has this permanentorganization dedicated to greening activities in Osaka, Itami,
Yokohama Works, and in manufacturing site in Kanto and Kumatori.

CSR Report 2015

Social Contribution

Migration of species

Design and production of final products(by customers), use and services●

Chemical Management
Task Committee● Action ECO-21●

Aspects/Impacts
Loss of habitats

Green Logistics Promotion
Task Committee● Action ECO-21●

Environmental
Preservation

Recovery and recycling
Works Environment Committees● Works Development Committees● SBC Greening Group※●

Transportation and sales
Human Resources

●

●

72

〈 CSR Core Category 〉

Social Contribution

Social Contribution

Basic Policies on Social Contributions〈 CSR Priority Theme 〉

Contribution through Our Business
Locations and Foundation

Sumitomo Electric stipulated the Sumitomo Electric Group
Basic Policies on Social Contributions, which are based on the
Sumitomo Spirit and the Sumitomo Electric Group Corporate
Principles, on the occasion of the 110th anniversary of its
founding in 2007.

We will promote long-term social
contribution in local communities evenmore and in a wider range of ﬁelds.

The Sumitomo Electric Group Basic Policies
on Social Contributions
The Sumitomo Electric Group will proactively address voluntarysocial action programs, as a member of society, focusing on respectfor human resources, attaching importance to technology, andcreating a better society and environment in accordance with theSumitomo Spirit and the Sumitomo Electric Group Corporate
Principles, as well as widely contributing to society through its
business activities, including the provision of products, technologies
and services that beneﬁt society.

The business activities of the Sumitomo ElectricGroup cover a vast range of technologies, markets
and business domains, which involve various
stakeholders. In addition to social contribution
through business activities, we will continue tomake long-term social contribution in a wide variety
of ﬁelds.

● Globally promote eﬀorts toward the development of humanresources, the promotion of research and learning andenvironmental conservation.
● Promote community-oriented social contribution activities in theGroup's business locations all over the world.
● Provide

continuous support to employees' voluntary social
contributions.

① Develop social contribution activities thatmeet local needs② Establish partnerships with community-basedorganizations③ Continue long-term social contribution
initiatives

Under the Basic Policies, we are committed to the social
contribution activities suitable for the Sumitomo Electric Group,
which is aiming to be a Glorious Excellent Company, withfocus on the establishment of the SEI Group CSR Foundation asa vehicle to contribute to encouragement of research andlearning activities and human resource development, as well as
on promotion of activities to contribute to local communities
and support of volunteer activities and donations by
employees.

To promote a more active use of
the SEI Group CSR Foundation.

Activities of the SEI Group CSR Foundation,a Public Interest Incorporated Foundation

Seigo Kawasaki

I am working for the operation of

The SEI Group CSR Foundation is a public incorporated
foundation established for the purposes of developing
human resources and promoting academic activities

donation and support programs at theIn ﬁscal 2014, the SEI Group CSR Foundation received

secretariat of the SEI Group CSR

contributions of a little over 131,770 thousand yen in total

Foundation.

from Sumitomo Electric (with the whole amount, including a

My jobs are wide ranging fromlittle over 770 thousand yen donated through the cafeteria

communication with students, universities

plan, appropriated for operation) and (1) donated 92 million

and research institutes to collection of

yen in total to university courses, (2) supplied subsidies of 21.8

information used for the selection of

million yen in total to academic and research activities, and (3)candidates for ﬁnancial support.

provided scholarships of approximately a little over 24.9 million

In ﬁscal 2014, we organized a ceremony

yen in total for 18 foreign students learning in Japan and 80

to provide ﬁnancial support for academic

local students studying at overseas universities.

and research activities, as well as a

In the program to make donations to university courses, we

meeting for students to present their research activities.

provided monetary support for three new courses along withThrough these events, I learned how the foundation is

the six courses continued from previous ﬁscal year.

utilized and how each of the research activities●

Plant Bioengineering for Bioenergy Laboratory and
Implementation of a problem-solution oriented machineengineering education to develop human resources for
manufacturing practice in the next generation at Osaka University●

Research course on tsunami marine hazards at Kobe University●

Research on terminal care for elderly patients with chronic
heart disease at Saga University●

Research on neuroimaging at Tohoku University●

Course on environmental laws and policies toward
reconstruction from the earthquake disaster and the nuclear
power plant accident at Hitotsubashi University

Administration Group, Administration Divisioncontributes to society. The sincere attitude of thestudents and scholars to research renewed myawareness of the signiﬁcance of the CSR Foundation, andmade me proud of playing a part in it.
I will continue to convey the signiﬁcance and role of the
SEI Group CSR Foundation to even more people in orderto help the foundation cultivate human resources thatcan make social contribution and promote technicaldevelopment both in Japan and abroad.

73 CSR Report 2015

Endowed lab. Innovation Management Science at Kyoto
University (new)at our cafeterias since October 2011. A low-calorie,●

Data Entrepreneur Program (IT innovation human resource
development programs for data science and new business)at the University of Electro-Communications (new)and 20 yen is donated from the sale of each meal to help

Hands-on training program for the development of young
entrepreneurs at the University of Tokyo (new)prices for vaccines to be provided to children across the world●provide school meals in African countries. In addition, wedevelop activities to donate profit on sale of PET bottle caps as
through Japan Committee Vaccines for the World's Children,
an authorized NPO.

and research activities, and received 101 applications. Out ofthem, we have selected 19 research programs including basic

Social Contribution through Donations

science research that needs research funds and exploratory
research by young researchers, and offered subsidies to them.
Web

C S R VO I C E

In ﬁscal 2014, we made donations in various areas including
schools and education, industrial and academic development,
R&D, art and culture, welfare, local development,

I hope that Japanese companies
serve as an engine
for the Thai economy

environmental conservation and sports. For example, we gave

Mr. Harit Chanoktvakul

environmental conservation by nature conservation funds andactivities, as well as important social activities such asother organizations.
We also collected matching gifts＊ from employees to donate a
total of a little over 3,630,000 yen to the Japan Committee for
UNICEF, Japanese Red Cross Society, World Wide Fund for
Nature (WWF) Japan, etc.
In addition to initiatives in Japan, we developed social
contribution activities on a global scale, including the donationof sponsorship money to EXPO Milano 2015.
Sumitomo Electric made donations for the endowment of the
SEI Group CSR Foundation from ﬁscal 2009 to 2013. As theaccumulated endowment reached the initial target of 2 billion
yen, we have donated fund for operation only since ﬁscal 2014.

Total

Environmental
conservation
1,000,000 yen

Welfare projects
4,224,480 yen

Environmental
Preservation

Amount of Donations by Year(thousand yen)

924,560

800,000

809,526

749,738

527,643

400,000
200,0000

500,000

500,000

500,000

2011

2012

2013

216,582

300,000

We have promoted TABLE FOR TWO, a program to contribute2010

to society and support health management of our employees

Accumulated endowment

2014 (Fiscal year)

Social Contribution

600,000

Human Resources

Industrial andacademic development,
research anddevelopment
30,886,000 yen

yen

23,115,250 yen

1,000,000

We promote a program aimed at contributing to society
and helping employees manage their health, as well asactivities to provide vaccines to children around the world

84,807,730

Schools andeducation

We support volunteer activities by employees with various systems

Collaboration with an NPO

Other 4,295,000 yen

Local development
8,047,000 yen

Volunteer Activities

The SEI GroupCSR Foundation
131,774,378 yen

Supply Chain

yen

Sports, arts andculture13,240,000 yen

We have introduced a volunteer holiday system since April
2007, which allows employees to take cumulative paid holidays(up to 10 days in a year) for performing volunteer activities.

Products & Services

Amount of Donations by Category (Sumitomo Electric alone)

216,582,108Core
Category

I am Harit Chanoktvakul, a second year student of Thai-Nichi
Institute of Technology (TNI), and am a third year student in June
this year. I belong to Department of Information Technology, Facultyof Information Technology, and study IT in general.
In consideration of my family's tight budget, I had to carefully decide
whether to choose a national or private university. As no national
universities had a course of my choice, I decided to go to TNI, thetuition fee of which was the most reasonable among the private
universities.
While I have got a student loan from Thai government in addition toa scholarship from Sumitomo Electric, the scholarship is very helpful
because I do not have to repay it.
My favorite subject at the university is programming, and I am
especially interested in Android Development. I hope to find a job
related to it after graduation, and in the internship program for
fourth year students, I want to select a company where I can work
as a programmer. It is a pity that there are few Japanese companies
in the Thai IT industry.
In the future, I want to pursue a career as both a programmer and abusiness owner. I am also interested in running restaurants, andactually making extra money from selling fruits at the university
cafeteria now. I hope to spend my time wisely to study at theuniversity and secure my livelihood at the same time.
The Thai economy is currently stagnant. While many Japanesecompanies are developing their businesses in the country, I expect
them to expand their economic activities here.
I would like to thank the SEI Group CSR Foundation for its
contribution to the Thai society, and hope that the Sumitomo
Electric Group plays a more active role in Thailand in the future.

performance as part of our eﬀorts to assist art and culturalGroup's CSR Activities

2nd year student, Information Technology Course,
Faculty of Information Technology,
Thai-Nichi Institute of Technology

ﬁnancial support to symphony orchestras and opera

GovernanceGroup CSR Foundation page of our website
http://www.sei-group-csr.or.jp/e/index.html

We are making social contribution through donations
from a global perspective

Business Outline

We also invited applicants to the program to support academic

well-balanced healthy menu is offered daily at the cafeterias

Basis for Management●

Glossary ＊Matching gift system
The company concurrently donates an amount equal tothe donation made by an employee in this system.

CSR Report 201574

In accordance with the basic principle of Harmony with the International Community, the Sumitomo ElectricGroup, which has presence in about 40 countries around the world, aims to contribute to development oflocal economy and society while respecting the culture and customs of every region and country. To this end,
along with social contribution through business activities, we are committed to various activities to support
local communities and build harmonious relations with them.

Contributions
to LocalCommunities

Activities in Japan
A total of 55 companies of Sumitomo Electric and its group companies are covered.
They include Sumitomo Riko Company Limited, Nissin Electric Co., Ltd. and
Sumitomo Densetsu Co., Ltd., which are listed in stock exchange.

Promoting community support activities andexchange with local communities● Local cleaning activities, promotion of greening,

environmental conservation activities, etc.

● Activities to exchange greetings with and watch

for the safety of elementary school students
on their way to school

Sumitomo Electric: Cleanup of the area around each of its business sites
Cleanup activities are performed in 34 of the 55 companies including
the companies mentioned above.
●● Supporting local disaster-prevention and safety activities

Sumitomo Electric Sintered Alloy, Ltd.: Activities to watch for the safety ofelementary school students on their way to school
Performed in 28 of the 55 companies including the company mentioned above.
●● Opening corporate facilities (sports grounds, gyms, etc.) to the public●

Performed in 4 of the 55 companies including A.L.M.T. Corp.

● Inviting local residents and students(from elementary, junior high and high schools) to plant tours● Greenery-

Floral Festival

Sumitomo Electric Device Innovations, Inc. received 63 local
high school students in February 2015
Performed in 10 of the 55 companies including
the company mentioned above.
●● Opening company sites to the public to organize events

Sumitomo Electric: In Itami Works, organizing Greenery-Floral Festival in November
Performed in 4 of the 55 companies including the companies mentioned above.
●● Publishing local community magazines

Sumitomo Electric: Osaka Works in July 2014 and January 2015,
Itami Works in May and December 2014,
Yokohama Works in May and November 2014

● Mural art created by elementary school students

Contributing to sports and cultural activities● Contributing to sports activities

Sumitomo Electric: Sponsoring the 70th Lake Biwa Mainichi Marathon in March 2015
In Itami Works, jointly organizing athletic practice sessions forelementary school and junior high school students in Itami City
(16 sessions a year)●

Performed in 10 of the 55 companies including the company mentioned above.

● Contributing to arts and cultural activities

Sumitomo Electric: In Osaka Works, participating in the Konohana Art Project ofKonohana Ward, Osaka to offer a wall in its site as a canvas forthe creation of mural art by students of
Shimaya Elementary School in November● Accepting elementary school students fora work participation program

Supporting education and training● Offering hands-on training programs and off-campus classes tostudents and teachers
Tokai Sumiden Precision Co., Ltd.: Accepting elementary school students fora work participation program in November●

Performed in 24 of the 55 companies including the company mentioned above.

● Blood donation in Malaysia● Holding on-site seminars

STARNET Co., Ltd.: Jointly organizing Information Security &Crisis Management Seminar in January 2015●

Performed in 6 of the 55 companies including the company mentioned above.

Activities in other countries● Employee volunteerism in local communities

Sumitomo Electric Interconnect Products (M) Sdn. Bhd.:
Blood donations and support of persons with disabilities in Malaysia● Support of persons withdisabilities in Malaysia

75 CSR Report 2015

pick
icck up!

Donated Course: Research on neuroimaging at Institute of Development, Aging and Cancer, Tohoku University

Basis for Management
Business Outline

Creating a way to overcome Alzheimer's
disease through the research anddevelopment of probes useful for
its early diagnosis
The SEI Group CSR Foundation makes donations to
excellent university courses that contribute to social
development. One of them is Research on neuroimaging
at Institute of Development, Aging and Cancer, Tohoku
University, which has made achievements in theProfessor Yukitsuka Kudo

development of probes that enable early diagnosis of

Early diagnosis of Alzheimer's disease
will become possible

agents. In recognition of the achievement, we received

Our course is aimed at the research and development of

Nuclear Medicine and Molecular Imaging. It was a greatprobes useful for early diagnosis of Alzheimer's disease. It

honor to earn the award, and the probe is now undergoinghas been identified that Alzheimer's disease develops withclinical research by a company that has concluded patent

the accumulation of two types of proteins, namely amyloid

license agreements with more than 40 research institutes

beta and tau, in the brain. For those who have notaround the world in order to put the probe to practical use.

●

GovernanceInstitute of Development,
Aging and Cancer, Tohoku University

Alzheimer's disease. This course is introduced below.

2014 Image of the Year award, which is given to the best
research presentation of the year, from the Society ofaccumulation of those disease-causing proteins in thebrain will enable early diagnosis of Alzheimer's disease,

Group's CSR Activities

developed Alzheimer's disease, determination of theand the onset can be prevented. The probes we areCore
Category

working to develop are compounds thatbind to those types of proteins tomake them identifiable with PET＊ or
From left, tau probe (THK-5351) PET images of a normal young person,a normal aged person, a person with mild cognitive impairment anda patient with Alzheimer's disease. The accumulation of tau is clearly visible.

●

We now engage in the research of a probe for opticalimaging to develop an advanced probe that reduces theburden associated with examination and diagnosis, as wellSupply Chain

For early diagnosis in an easier andmore convenient way

Products & Services

by optical imaging.

as the examination cost. If it becomes available for clinicaluse, Alzheimer's disease can be detected at an early stage
still at a very early stage, the probe will also allow people
to be examined casually in a●group medical checkup or acomplete medical checkup.
Development of the probes isvery expensive due to personnel

million as of 2015. According to the United Nations, it iscost, purchase of specimens,

estimated that about 200 million people at or above 65

application for patents, etc. We

years old in total live in developed areas around the world.

greatly thank the SEI Group CSR

Allegedly, 20 to 50% of them are likely to suffer Alzheimer's

Foundation for supporting us fordisease, and overcoming the disease is now a major

three terms, roughly nine years.

common challenge worldwide. We have developed a PET

We would like to keepprobe for tau imaging for early diagnosis of Alzheimer's

contributing to overcoming

disease. In addition, the probe is expected to serve as a

Alzheimer's disease through themonitor to examine the effect of therapeutic agents, andresearch and development of

thereby contribute to development of new therapeuticprobes.

One of the largest compound
libraries in Japan with morethan 4,000 compounds

Social Contribution

Japan's population aged 65 or older is approximately 34

Environmental
Preservation

Overcoming Alzheimer's disease is
a common challenge worldwide

Human Resources

safely in an extremely short time. Although the research is

Glossary ＊PETPositron Emission Tomography
CSR Report 201576

Independent Third Party Assurance Report

77 CSR Report 2015

Comments from an External Expert

My ﬁndings on the CSR activities and information disclosure by the Sumitomo Electric Group are as follows:

Commendable points■ Revision of VISION 2017 targets

The mid-term management plan VISION 2017 is a growthstrategy that focuses on conversion to an appropriate businessmodel for a sustainable society, and is also closely related toenergy and resource issues. The plan is therefore an important
tool to promote the integration of business activities with CSR
management. While VISION 2017 set the targets to beachieved by 2017 on various aspects, Sumitomo Electric madean intermediate revision of the targets this ﬁscal year based on
its strong performance and other factors. As a result, with the
upwardly revised targets, as well as newly set indicators, theCompany has established a system to support its shift to asustainable society at a higher level than the initial plan. Such
ﬂexible adjustments of targets demonstrate that the PDCA
cycle is working properly, which should be recognized as acommendable point.
■ Widespread use of the systems to

support work life balance
While Sumitomo Electric has conventionally had
well-developed systems to support its employees, there has
been a conspicuous trend in the use of the systems in recent
years that an increasing number of men have been using thechildcare leave system and the short-time work system. In
general, programs to support work life balance are mostly usedby female workers, and male workers often face diﬃculties inusing them. This, however, means that only women bear theburden of child rearing, which should not be a favorable
situation in consideration of the purpose of the systems. The
increase in male users in Sumitomo Electric indicates that theCompany has a healthy corporate culture that accepts it.
I hope that the systems will be used even more widely.
■ Activities for the value chain

Sumitomo Electric had progress in its activities related to thevalue chain this ﬁscal year. For example, while the Company
conducted monitoring of 122 suppliers to promote CSR
procurement on a trial basis in ﬁscal 2013, the number of themonitored suppliers increased to 830 in ﬁscal 2014. In
addition, emission data for Scope 3 in CDP started to becollected in eight categories in ﬁscal 2014, and greenhouse gas
emission data by Scope are now disclosed in a near-completemanner. The contribution of anti-global warming products toemission reduction is also growing steadily over time. However,as the target for ﬁscal 2014 was not met, improvement should
be made in this respect in the future.

■ Expansion of the reporting boundary

Expansion of the reporting boundary to provide information ona consolidated basis, which was a continuous challenge for theCompany, has also seen steady progress. While the Sumitomo
Electric Group estimates that 99% of its environmental impact
is subject to the environmental management of the Group, thecomprehensiveness calculated as the ratio of greenhouse gas
emissions covered by the disclosed data also grew from 88% in
ﬁscal 2013 to 91% in ﬁscal 2014. Sumitomo Electric is thus on its
way to virtually providing information on a consolidated basis.

Aspects needing improvement■ Management of KPI in the Action ECO-21 Campaign

Achievement of the targets in all items in the Action ECO-21
Campaign is a main target for the CSR core category ofenvironmental preservation. This is an ambitious goal, and theachievement of the targets in most of the items clearly shows theeﬀectiveness of the functions of the environmental management.
However, it is also a fact that the achievement of the targets in
all items is hard to realize. The attitude of continuously trying topursue the diﬃcult goal deserves respect, but I hope that theCompany goes back to basics of KPI management and enhance
its activities so that the target can be reached.
■ Elimination of occupational accidents

Reduction of occupational accidents to zero is another target
that is hard to reach. While elimination of serious accidents
and accidents resulting in lost time work is a main target in the
CSR priority category of human resources, there wereregrettably 15 injuries resulting in lost time work during ﬁscal
2014. Although it is commendable that the causes areanalyzed properly and necessary countermeasures are
mentioned, workplace safety is a crucial issue and I hope thatsafety measures are fully taken to promote establishment ofsafer workplaces.

Professor, Faculty of Economics,
Sophia University

Yoshinao Kozuma

Sumitomo Electric's Response to the Findings
We thank Professor Kozuma for providing suggestive opinions on our Group's CSR activities and information disclosure.
Professor Kozuma gave a high mark to our eﬀorts for revision of VISION 2017 targets. We will strive to achieve the newtargets and further promote CSR activities through business activities. For widespread use of the systems to support work
life balance, we will make continuous eﬀorts to enhance the systems and also develop a corporate culture that encourages
employees to use them.
The expansion of our business activities enhances the importance of the Group's global management. We therefore
consider that activities for the value chain are one of the social challenges for the Sumitomo Electric Group, which isdeveloping business activities on a global scale, and continue the activities along with expansion of the reporting

Yoshitomo Kasui
Managing Director
and Chairperson of
the CSR Committee

boundary.
As to the items identiﬁed as aspects needing improvement, we will intensify our eﬀorts for management of KPI in the
Action ECO-21 Campaign and elimination of occupational accidents. We will further develop our CSR activities so that our
stakeholders enhance their understanding of our activities and attach a higher value to them.

The Findings by an External Expert in this English version are a translation of the original text in the Japanese version.

CSR Report 2015

78

Administration Division (CSR Promotion Oﬃce)
1-3-13, Motoakasaka, Minato-ku, Tokyo, 107-8468 JAPAN

Phone: +81-3-6406-2611 Fax: +81-3-6406-2700［URL］http://global-sei.com/csr/ ［E-mail］csr@info.sei.co.jp

A（2）-060002

Printed on environmentallyfriendly FSC-certiﬁed paper usingwood from properly managed
forests

Printed on paper made with woodfrom forest thinning Morino
Chonai-Kai (Forest Neighborhood
Association) Supporting sound forest
management

Sumitomo Electric
supports an initiative
to preserve forests bypromoting the use ofdomestic timber

Printed using
vegetable oil ink

Printed by waterlessprinting method,which produces nohazardous wastes

Universal design
fonts that are easy tounderstand and easy
to read are used

［Published November 2015］