CSR Report 2017

CSR Report 2017
FeatureHealth and Safety Activities in Southeast Asia

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.
● In the introduction of our business activities, a representative

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 feature article focuses on health and safety activities andintroduces the eﬀorts of two group companies in Southeast
Asia (Indonesia and Malaysia) (P19 to 24).
● As a topic on the CSR core category "Products & Services,"

this report introduces the POREFLON™ membrane
separation wastewater treatment system (P37 to 38).
● CSR promotion activities individually conducted by fouraﬃliates are introduced (P77 to 78).
We have continued to make eﬀorts to facilitate understandingof the contents of this report as follows.
● The main targets and actual results in ﬁscal 2016, as well as

the targets for ﬁscal 2017, are summarized to introduce ourmajor activities in the CSR core categories (P33 to 34).
● 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 and a tableshowing correlation of employee support programs with
relevant laws are published on the following website:（ http://global-sei.com/csr/download/ ）■ Period Covered by This CSR Report

April 1, 2016 through March 31, 2017 (ﬁscal 2016).
Some activities conducted in ﬁscal 2017 are also covered.
■ Boundary of This CSR Report

Sumitomo Electric Industries, Ltd. and its consolidated
subsidiaries (357 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 on stock exchanges inJapan, and their consolidated companies are excluded. In
some cases, Sumitomo Electric alone or only the Company
and limited consolidated subsidiaries or some of theequity-method companies are included. The items
referenced within such a speciﬁcally limited boundaries areindicated in the text or footnotes in the table or graph.
● For details of the scope of data collection for environmental

indicators, see Explanation of the Boundary in P63.
■ 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/ ）Environmental Reporting Guidelines 2012 issued by the
Ministry of the Environment of Japan.
■ Date of Publication

November 2017
(Last CSR Report: published in November 2016; and next CSR
Report: scheduled for release in November 2018)

Responses to ﬁndings by an external expert

Expansion of the reporting boundary〉〉
We disclosed the number of employees by gender on group-wide and global scales in 2016 and the number of section

managers or higher positions by gender in 2017. We will continue to expand the reporting boundary based on an ideathat report of various indicators on a consolidated basis is one of our CSR challenges.

Improvement of initiatives outside Japan〉〉We have been strengthening our CSR activities outside Japan as well. The CSR Report also introduces ourinternational initiatives, including eﬀorts to eliminate occupational accidents, which are explained in the featurearticle, as well as the compliance system, quality management audits, CSR procurement activities and operation anddevelopment of various systems based on the Global HRM Policy. We will continuously enhance our international
initiatives for a more pleasant and diverse work environment in accordance with the unique systems, customs,
cultures, etc. of the respective regions.

01 CSR Report 2017

Basis for Management

CONTENTS

Basis for Management

Basic Value Standards

07

Company Proﬁle
roﬁle

08

anagement Plan VISION 2017
Mid-term Management

09

Our History and Business

11

Automotive

12

Infocommunications

13

Electronics

14

Environment & Energy

15

Industrial Materials

16

2016 Highlights

17nGlobal Business Expansion

CSR EYE

Group's CSR Activities

19

GovernanceTop Message
ge

05

Business Outline

Business Outline

03

M A L AY S I A / I N D O N E S I AHealth and Safety Activities
in Southeast Asia
GovernanceRisk Management

29

Compliance

31

CSR Management

32

Relationships with Stakeholders

33

Main Targets and Actual Results in Fiscal 2016 / Main Targets for Fiscal 201735

Research & Development

37

TOPICS

39

Product Quality & Product Safety

POREFLON™ Membrane-Separation
Wastewater Treatment System

Supply Chain

Core Category

Human Resources

47

Diversity

51

Safe and Sound Workplace55

Human Resource Development

57

To Become a Company with the Highest Level of Safety

59

Environmental Management

64

Activities to Prevent Global Warming

68

Promotion of Resource Conservation and Recycling

70

Reduction of the Release of Harmful Chemical Substances

71

Expansion of Environmentally Conscious Products

72

Activities to Conserve Biodiversity

73

Social Contribution

77

Promotion of CSR Activities in Aﬃliates

79

Independent Third Party Assurance Report

80

Comments from an External Expert

Core Category

Environmental
Preservation

Social Contribution

Social Contribution

43

Environmental
Preservation

Supply Chain

Human ResourcesCore Category

Core Category

Supply Chain

Products & Services

27

Products & Services

Core Category

Corporate GovernanceCore
Category

Group's CSR Activities

25

CSR Report 201702

To p M e s s a g e

Making Eﬀorts to Become aGlorious Excellent Company
Osamu Inoue
President & COO Sumitomo Electric Industries, Ltd.

Prefacefiscal year will be sales of 3,000 billion yen andoperating income of 175 billion yen in consideration of

I sincerely express my gratitude to our stakeholders for

impacts of foreign exchange fluctuations and various

their continued support and understanding of theother factors. The future of the business environment for

Sumitomo Electric Group's business activities.

Sumitomo Electric has become even more unpredictable

We are striving to maintain our Glorious state, which isdue to social and economic issues in the world,

an unchanging value for us as a corporate person based

including policy uncertainty in the US and European

on the Sumitomo Spirit and the Sumitomo Electric Groupcountries, downward risks in emerging economies andCorporate Principles, and to achieve "Excellent" businessgrowing geopolitical risks in East Asia, as well as

results. Through these efforts, we aim to become adramatic technical movements in the fields of the IoT

Glorious Excellent Company, which is our ideal state in

and AI,. In addition, it is expected that international

the future. As a milestone on the way to the goal, we arecompetition between firms is getting fiercer and fiercer.

now committed to achieving the mid-term management

Under such difficult and unpredictable circumstances,

plan VISION 2017 and fiscal 2017 is the final fiscal

we consider that it is essential to meet the numericalyear for the plan.

targets we have set and will work to get as close as

We estimate that our consolidated performance for thispossible to the goals of VISION 2017.

03 CSR Report 2017

major cost reduction effect in our business. Our Groupwill continue to make concerted efforts to achieve
field.

namely Products & Services, Supply Chain, Human

While promotion of CSR procurement, which aims to

Resources, Environmental Preservation and Social

share CSR value with suppliers and ask their positive

Contribution. Since then we have promoted measures

response, is the priority theme in the Supply Chain

for the CSR priority theme set for each of the categories

category, in the Social Contribution category, we will

to make efforts in a more focused manner.

continue social contribution activities at business

The priority theme in the Products & Services category is

locations and contribution through the SEI Group CSR

innovation. This aims to develop product lines withFoundation.

unique features and future potential, which is also

Needless to say, we also have to further strengthen theconsistent with VISION 2017. Since its foundation as acorporate structure and ensure compliance so that our

manufacturer of electric wires and cables, Sumitomo

Group can progress in a sustainable manner.

Electric has diversified its businesses through theresearch and development of the related materials andelement technologies. Given that the products created inthose business fields are required to underpin the

Governanceresults from various creative ideas in the production

our CSR activities in connection with VISION 2017,

Business Outline

In fiscal 2013, we specified the five core categories for

Basis for Management

CSR Core Initiatives

Compliance

its social duties as a corporation and form thesolve its problems.

foundation for its continued existence and development.

In the Human Resources category, promotion of diversity

In particular, we consider compliance with competition

is a priority. This is not just an initiative from a CSR

laws to be a top priority issue, and since the formulation

perspective but also an essential and fundamentalof the Rules for Compliance with Competition Laws inbusiness strategy. Setting the promotion of diversity as aJune 2010, we have worked to strengthen thepriority initiative in VISION 2017, our Group will pursue

compliance system ensuring that the regulations arefurther growth through the active use of human

implemented by specialized organizations and otherresources both in Japan and overseas. For moremeasures.

effective use of human resources, following theUnder the principles of the Sumitomo Spirit, which

establishment of the Global HRM Policy in 2011, wevalues doing your sincere best not only in business but

introduced the Global Grade System in 2014 andalso in every aspect of your life, placing importance on

appointed Group Global Executives to practically apply

integrity and sound management and not acting rashly

the policy. From now on, we will promote theor carelessly in pursuit of easy gains, we will continue to

involvement of the appointed executives in businessconduct our business fairly and honestly to be trusted bymanagement and other initiatives. While Western

society.

countries have a culture where people learn expertise

Supply Chain

ethics constitute the basis of its management, represent

have done, to produce innovations that help society

Products & Services

regulations and acting in accordance with corporate

will continue to take on new challenges as we always

Core
Category

Sumitomo Electric believes that complying with laws anddifficult to expect dramatic innovation in them. Still, weGroup's CSR Activities

infrastructure to be used over many years, it may be

independently and apply for employment to make use ofissues that need to be addressed, such as the creation

Closing Remarks
momentum to achieve sustainability is growing with thewe will pursue the recruitment and promotion of womensustainable development goals (SDGs) adopted by theand hire more mid-career employees while responding

United Nations in 2015 and the Paris Agreement

to social trends and enhancing awareness among

adopted in COP21 to the United Nations Framework

employees.

Convention on Climate Change (UNFCCC) in 2016.

The priority theme in the Environmental Preservation

Celebrating its 120th anniversary in business, our Group

category is the prevention of global warming. As the key

will combine to be committed to help solve global issues

performance indicator for this theme, we have set thethrough the integration of its wide variety of products

target of reducing greenhouse gas emissions from ourand technological assets accumulated so far and theglobal operations by 5% in fiscal 2017 from the fiscal

implementation of CSR initiatives.

2012 level, and are making continuous efforts to achieve

We sincerely ask for your continued understanding andthe target. While the reduction of greenhouse gas is a

support for our endeavors.

key to the prevention of global warming, it also has a

CSR Report 2017

Social Contribution

When you look at the global trends concerning CSR, thepotential and the reform of working styles. In this aspect,

Environmental
Preservationof an environment where women can realize their full

Human Resources

their expertise, the labor market in Japan has unique04

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 2017

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, theenvironment 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●

Basis for Management

The Sumitomo Electric Group Corporate Principles

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 2017

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
Osamu Inoue

President
Capital Stock

99,737 million yen (as of March 31, 2017)

Head Oﬃce

4-5-33, Kitahama, Chuo-ku, Osaka, JAPANBusiness Conditions in Fiscal 2016
During fiscal 2016, although the global economy basically

optical and electronic devices and other products especiallycontinued to show a gradual recovery, uncertainty in thein overseas markets.

outlook was heightened with the issue of Brexit in the UK and

Under these circumstances, our consolidated results for fiscal

the start of the new administration in the US, as well as2016 recorded a revenue decline with net sales of 2,814.5

concern about the impact of slower growth in emerging

billion yen, a year-on-year decrease of 4.0%. On the othermarkets and other issues. Also in the Japanese economy, thehand, profits increased from the previous year as a result ofrecovery paused with sluggish personal consumption.

our efforts for cost reduction on a global scale, as well as the

The business environment surrounding the Sumitomo Electric

development and sales increase of new products. Our

Group was severe during this fiscal year with the major

operating income grew by 4.9% from the previous fiscal year

impacts of the decline in demand for flexible printed circuits

to 150.5 billion yen while both ordinary income and profit(FPCs) for mobile devices, the appreciation of the yen and a

attributable to owners of the parent also increased by 5.0%

drop in the prices of copper, despite solid demand forto 173.9 billion yen and by 18.2% to 107.6 billion yen

automotive wiring harnesses, optical fibers and cables,

year-on-year, respectively.

Net Sales (Consolidated)

Operating Income and Proﬁt Attributable to
Owners of the Parent (Consolidated)(Unit: 100 million yen)

(Unit: 100 million yen)

30,00029,331

28,2281,600

28,14525,68825,0001,400

21,599

1,201

1,200

20,00014,17016,468

16,537

910
768

800

10,000

667
380

400

11,518

11,111

11,760

1,505

1,198

1,000

600

5,000

1,435

1,076

17,461

10,48815,0001,345

11,87011,608

200
0

0

2012

Overseas

2013

2014

2015

2016

Ｉn Japan

2013

Operating Income

2014

2015

2016

(Fiscal year)

Proﬁt Attributable to Owners of the Parent

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

Total Assets and Net Assets (Consolidated)（％）(Unit: 100 million yen)

29,25830,00025,0002012(Fiscal year)

25,54827,42829,036

10

22,976

9.1
7.7

8

6.6

20,00016,46915,00012,447

13,79916,265

15,613

6.5

6

6.8
6.5

4.8

7.2

5.9

4

10,000

3.7
2

5,000
0

0

2012

Total Assets

2013

2014

2015

2016

Net Assets

2012(Fiscal year)

ROE

2013

2014

2015

2016

(Fiscal year)

ROA

Glossary ＊ROA

07 CSR Report 2017

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 in 2015)(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 2017

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;
infocommunications; 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 anti-vibration 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

Delivered 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 subsidiary.
Started development of ﬂexible printed circuits (FPCs).

09 CSR Report 2017

Responding to safety, amenity andenvironmental needs of future motorized society

Ratio of thebusiness unit in thenumber of employees

52.4％

75.6％

1,513,221

187,815(million yen)(persons)

Ratio of thebusiness unit
in the total sales

Ratio of thebusiness unit in thenumber of employees

8.7％

10.4％

Business Outline

With 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

Electronics
Supporting advancement in the functions
and performance of electronics
In the electronics ﬁeld, devices are required to be ever smaller, lighter, more functional, and morelineup by continuously developing new materials, wires and other parts. Sumitomo Electric's

251,11325,852(million yen)(persons)

Ratio of thebusiness unit
in the total sales

Ratio of thebusiness unit in thenumber of employees

21.5％

5.3％

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.

Governancesophisticated. To meet these requirements, Sumitomo Electric has been expanding its productBasis for Management

Automotive

Environment & Energy

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.

621,418

13,077(million yen)(persons)

Ratio of thebusiness unit
in the total sales

Ratio of thebusiness unit in thenumber of employees

6.9％

2.7％

Group's CSR Activities

Supporting a stable energy supply

Infocommunications

6,734(million yen)(persons)

Ratio of thebusiness unit
in the total sales

Ratio of thebusiness unit in thenumber of employees

10.5％

6.0％

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

303,943

14,852(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.

Opened the Kanto Works.

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
1996

2003

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.

Succeeded in producing the world's largest synthetic monocrystalline
diamonds (1.2 carats).

2008

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

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 2017

Social Contribution

Started production of compound semiconductors.

1971

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

198,240

Products & Services

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.

Core
Category

Supporting communications

10

Automotive

Pipe-shielded wiring harnesses for HEVs

Anti-vibration rubber products

Charging connector for EVs

We have established an integrated system to produce aluminum wires
for wiring harnesses that help improve the fuel eﬃciency of automobiles
Aluminum wiring harnesses help reduce the weight of automobiles and also
save fuel and rare resources. I have been committed to the start-up of a newplant of STEC in Thailand and establishment of a mass production systemsince 2014 for the purpose of facility reinforcement in response to the increasein the overseas production of aluminum wires for wiring harnesses.
When I was assigned to the country and started to work, there was only abuilding and I had no other equipment or staff at first. I therefore faced various
challenges every day, including the decision of machine specifications, trial run,and installation of equipment, as well as quality assurance. It was especiallyhard to meet the quality standards. Along with repeated conference calls withassociated companies and repeated trial production, self-audits wereconducted to pass strict quality audits and training was also given to local
employees.
We then made the first delivery of standard aluminum wires in September
2014 and also started to deliver high-strength aluminum wires that are as
strong as copper wires in October 2016. In May 2017, we established theGroup's first integrated production system for aluminum wire materials, which
covers the casting, rolling and subsequent processes. STEC has grown to be a
hub plant in Asia that supplies high-quality products to 13 harness production
plants in various countries in a stable manner.
STEC continuously aims to make social contributions through the weight
reduction of aluminum wires and mass production of the products to further
improve the fuel efficiency of cars.

So
ocial challe
enges●

Response to global
warming●

Depletion of rare metals

Soccial expectatio
ons
Improvement of automobile fueleﬃciency through the reduction ofvehicle weight● Measures to address depletion of
resources

Sho Hayakawa
Development of Engineering Advisor,
Automotive Wire Division
SEI Thai Electric Conductor Co., Ltd. (STEC), ThailandNe
ew products and technologiies contributing
to the solution of the challeng
ges

●

●

Realization of stable supply through the establishment of
an integrated mass production system of aluminum
wires for aluminum wiring harnesses, which can be usedfor various applications in vehicles and motorcycles

High-strength aluminum wiring harness
The Sumitomo Electric Group developed aluminum alloy wires thathave similar conductivity to copper wires but are half the weight ofApplication
them and started to sell them as aluminum wiring harnesses in 2010.
exampleThe Group further proceeded with the development and in 2015
succeeded in developing a high-strength aluminum alloy wire withhigher strength than that of copper wire. The newly developed wires
have been commercialized as high-strength aluminum wiring harnesses
High-strength
aluminum wire
and laid even along the periphery of engines and other equipmentthat vibrate intensely.
Adopted by automobile manufacturers in Japan and other countries for a large number of car models, the high-strength aluminum
wiring harnesses help reduce car weight, improving fuel eﬃciency and thereby contributing to CO 2 emission reduction. As
aluminum reserves are larger than copper reserves, the product also contributes to saving rare resources.

11 CSR Report 2017

Infocommunications
Basis for Management

Optical transceivers

Broadband network service products

Governance

We have developed a GaN transistor that contributes toenhancing the capacity of cellular phone wireless networks

Business Outline

Multicore optical ﬁber cables

The GaN transistor we have developed is an element with a function toamplify radio wave signals and used mainly for transmission of radio wave
from cellular phone base stations. As high-speed communication devices
became widespread, it was required to downsize and sophisticate the baseGroup's CSR Activities

stations, as well as to construct more base stations. This increased demandfor GaN transistors because they are more efficient and require less electricity
for amplification than silicon-based devices using conventional technologies.
In addition, a base station using GaN transistors can be downsized with noneed of fans to control temperature rise, which degrades the performance ofthe station, and can also reduce the installation cost.
Devices are a key to communications and their quality is therefore crucial.

Core
Category

When we were developing the GaN transistor, which was a completely new
product with a completely new material, major challenges were the controlof quality and the realization of mass production. We then succeeded theProducts & Services

commercialization in 2006 and received the Minister of Education, Culture,
Sports, Science and Technology Prize of the Technology Management &Innovation Award in 2014. We are pleased that our products are still highly
valued in the market. We will continue development for 5G and othernext-generation communication services to contribute to further growth ofSocial challeng
gessDepletion of network resources due to widespreaduse of cellular phones and increases in data traﬃc●

High-performance next-generation (5G) cellular
phone base stations that enable high-speed
communication

Social expec
cta
ations●●Devices that can be installed in a
simple and convenient manner andreduce power consumption
Downsizing (integration) of devices
for ampliﬁers at base stations

New products an
nd technologies contrributingito the solution of the challenges●

GaN transistors that help downsize(integrate) cellular phone base stations
and reduce power consumption

GaN transistors for cellular phone base stations

Human Resources●

Senior Manager,
Electron Device Development Department,
Electron Device Division,
Sumitomo Electric Device Innovations, Inc.

Supply Chain

wireless communication.

Kaname Ebihara

Environmental
Preservation

The Sumitomo Electric Group focused on the properties of gallium nitride (GaN),
a new compound material, and developed a GaN transistor. This large-output
and high-eﬃciency transistor can help downsize cellular phone base stations
and reduce power consumption in the stations. We succeeded in its mass
production for the ﬁrst time in the world in 2006. With GaN transistors, power
consumption can be reduced by 18% under a normal operating environment inSocial Contribution

comparison with silicon transistors based on conventional technologies. The
new transistor also helps downsize a base station to 10 kg and 10 L or less.
This facilitates the installation of base stations on steel towers, building
rooftops, etc., which has increased the capacity of cellular phone wirelessnetworks and accelerated the dissemination of smartphones, etc.

CSR Report 201712Electronics

SUMITUBE TM

Flexible printed circuits (FPC)

SUMI-CARD TM

Electric vehicles equipped with our products are driven all over the world,
and we aim to improve their performance and extend their life
Lithium-ion batteries are used in driving power sources for hybrid and electricvehicles, which have been becoming popular in recent years. An importantcomponent of the batteries is a tab lead, a conductive material in which an
insulation layer is attached around a conductor. It serves as a lead wire of thebatteries and also has contact with electrolyte inside the batteries to take out
electricity to external electrodes, etc.
Our product "Tab-Lead " has higher insulation capacity and durability byattaching an insulation layer made of a material the heat deformation of which
is suppressed based on our patented technology to a conductor plate treated
to enhance the corrosion resistance using a sophisticated welding technique. In
addition, the material of the insulation layer has the capacity to seal theelectrolyte so that the Li-ion battery has higher performance and longer life. The
product has also been designed to minimize environmental impact throughmeasures such as non-chromium surface treatment of the conductor.
I have engaged in the design of this product since 2008. It initially had many
performance-related problems, and we repeated trial and error together withother divisions in charge of quality assurance, procurement and production
management, as well as material manufacturers, before the commercialization.
Now that the product satisfies many customers, we are committed to productdevelopment for new businesses in cooperation with the research division.
While society is making efforts to reduce CO 2 emissions on a global scale,demand for electric vehicles will further increase, and we aim to contribute tosociety through the delivery of our products to be loaded in such vehicles.

So
ocial challenges●

Increase in demand forenvironmentally friendly vehicles●

Extension of the driving range ofelectric vehicles, etc.

Social exp
pectatiions●

Development of high-performance,long-life and environmentally
beneﬁcial batteries

Takaaki Shimada
Assistant Manager,
Tab-Lead Design Engineering Section,
Tab-Lead Department, Sumitomo (SEI) Electronic Wire, Inc.

New produc
cts and technologies contrib
bu
uting
to
o the solutio
on of thhe challenges●

Tab-Lead for on-vehicle batteries thatrealizes high performance and long lifeand lithium-ion batteries with highenvironmental impact reduction eﬀect

Tab-Lead for on-vehicle batteries
A tab lead is a lead wire to draw out electricity from lithium-ion batteries.
"Tab-Lead," a product of the Sumitomo Electric Group, not only draws out

Insulation layerelectricity but also seals electrolyte at high levels. Its mass production

Conductor

was launched in 2010, and the product is used in many models of hybrid
and electric vehicles.

13 CSR Report 2017

Lithium-ion battery

Environment & Energy
Basis for Management

High-voltage optical ﬁber composite submarine cables

Magnet wires

Governance

We will contribute to modal shift around the world withkey technologies to the constant speed running of railroad vehicles

Business Outline

Copper wire rods

An air spring is a suspension based on the elasticity of compressed air. This iscurrently a mainstream technology for railroad vehicles because it has large
functional advantages including the adjustment of vehicle height and vibration
damping. The Sumitomo Electric Group is one of the manufacturers thatGroup's CSR Activities

started to develop the product in the 1950s. It was adopted for 0 series
Shinkansen trains in 1964.
The latest Shinkansen uses a tilting system with air springs so that they can run
without slowing down even over curved sections to facilitate constant speed
running and help maintain the promptness of transportation and reduceenergy use and CO 2 emissions. This is considered to be a technology that
accelerates modal shift from air transportation.
While modal shift is attracting attention on a global scale, we make effective
use of the relevant technologies we have accumulated over more than 60

CoreCategory

years in an effort to advance into the countries that are expected to grow in
the future. An example is China, which has grown dramatically in recent years.
Our products have a market share of more than 50% in the country's
also succeeded in entering the Indian subway market, which is expected to
grow rapidly in the future.
I would like to continue to contribute to the technical development of air
springs and the growth of our overseas business as an engineer and a

Social challenges
Reduction of CO2 emissions to prevent global warming●

Reduction of environmental pollution caused byexhaust gas●

Alleviation of traﬃc congestion●

Modal shift (from air
and road to rail)

New products and technologies contrib
butingutoo the solution of the challenges●

Air spring for high-speed railroad vehicles
to maintain the promptness oftransportation

Air springs for vehicles

Human Resources●

Social expectations

Assistant General Manager,
Vibration Control Products Group,Engineering Department, Hybrid Products Division

Supply Chain

manager.

Takayuki Sawa

Products & Services

high-speed railway, which is a key to its economic development. In 2015, we

Environmental
Preservation

Air springs, which are mounted between the car body and bogie, areimportant parts for signiﬁcantly reducing the vibration transmitted from thewheels to the car body and improving ride comfort of trains.
Air springs can help speed up a train and provide a comfortable ride byabsorbing the vibrations of the running train.

Social Contribution

Our air springs are widely used around the world in subways, commuter
trains, and high-speed trains like the Shinkansen.

CSR Report 201714

Industrial Materials

Cutting tools

Sintered parts

Prestressed steels

Our sintered parts, which are materials with potential,
will play key roles in the age of electric vehicles
Sumitomo Electric Sintered Alloy, Ltd. is in charge of the manufacturing andmarketing of sintered parts. Most of the sintered parts produced by our company
are currently used in automobiles, and each car contains approximately 10 kg ofsintered parts. They started to be used in wider fields when a variable valve
timing mechanism (VVT) was employed in cars. We are also working to apply
them to magnetic components of boosting converters and other items inanticipation of the coming age of electric vehicles.
Sintered parts are produced by compacting metal powder by a press andsintering it. They contribute to resource saving because no chips are generated
from molding or processing, and to energy saving because sintering requires alower temperature than molding. Once a mold is created, it is also easy to
manufacture the part in large quantities. We discuss what shape is easy to
produce with customers at the development stage, and achieve high quality
along with energy saving, short production time and cost reduction at the sametime in the production of sintered parts for VVT. In 2015, as a result of theautomation of the dedicated production line and improvement of the cutting
tools, we successfully developed new machining processes including theperforating and grooving of green compact compressed by a press before
sintering, which replace machining processes after sintering. In recognition of thisinitiative, we won the New Product Award (in the process development section)of the 38th Japan Powder Metallurgy Association Award for fiscal 2016. In theprevious year, our dust core for ignition coils was also valued as a technologythat helps lower the fuel consumption of cars.
We will continue to be committed to expanding the scope of the application ofsintered parts to save energy and resources.

Social challenges●

Reduction of CO2 emissions toprevent global warming

Soccial expectatio
ons●

Improvement of technologies tolower the fuel consumption ofcars

Sintered parts
Sintered parts are processed by the powder metallurgical method, atechnique that compresses and molds ﬁne powder of multiple metals
including iron and bakes it at a high temperature. Performed with molds,
this method is suitable for manufacturing parts to be produced in large
quantities, as well as components with complex shapes. It also enables
the creation of alloys of various compositions by changing the ratio of row
materials. Due to their superior features such as high dimensional
accuracy, sintered parts are used in various industrial ﬁelds including
automobiles, oﬃce equipment and household appliances.

15 CSR Report 2017

Naoto Igarashi
Assistant General Manager,
Engine Parts Development Group,
Product Development Department,
Sumitomo Electric Sintered Alloy, Ltd.

New
w products and teechnologies contrib
butingutoo the solution of the challenges●

Sintered parts used for VVT. Dust cores ofignition coils and boosting converters

2016 Highlights Major events during ﬁscal 2016 are listed below.
2017

7

2

●

Participated in the Virtual Power Plant Project●

Earned the Top L-boshi
Company Certificate under the
Act of Promotion of Women's
Participation and Advancementin the Workplace●

Became the first nonferrous
metal company to join the
Ikuboss Corporate Alliance

Received 2016 Top 100 Global Innovators Award●

Won an Excellence Award in theEnvironmental Reporting Category of the20th Environmental Communication Awards●

Started demonstration of a large-scale storage
redox flow battery system in California, US●

Set a new world record for the lowest loss of
optical fiber●

Selected as an
FY2016 Nadeshiko
Brand

●

Concluded a cooperation agreement with
Siemens AG and jointly won an order for ahigh-voltage direct current transmission
system in India

Group's CSR Activities●●

Governance

9

Received the Japan Regional Quality Award
from Nissan Motor Co., Ltd.

Business Outline

8●

Basis for Management

2016

Started the construction of a new plant of Tohoku
Sumiden Precision as a cutting tool manufacturingbase (completed the construction in May 2017)

Core
Category●

Started the operation of a new line for 6-inch SiC
power devices at a power electronics platform(Tsukuba Branch Office in the National Instituteof Advanced Industrial Science and Technology)●

Started the demonstration of a concentrator
photovoltaic plant in the Kingdom of Morocco

Social Contribution

Concluded a long term agreement to supply
submarine power cables with the Saudi
Arabian Oil Company (Saudi Aramco)

Environmental
Preservation●

Human Resources

Acquired Keystone, a major powdered metalcomponent manufacturer in the US

Supply Chain

11●

Products & Services

3

AIST: National Institute of Advanced Industrial Science and Technology

CSR Report 201716

Global Business Expansion
The Sumitomo Electric Group is developing business

EUROPE

activities on a global scale, with 394 consolidatedUK

7

companies and over 240,000 employees around

Italy

3

the world.

Ukraine1

Asia & Oceania

While providing superior products and services, weNetherlands

3

India

respect the cultures and customs of the countries

Spain

1

Indonesia

and regions in which we operate. As a corporate

Slovakia

2

entity we conduct business in harmony with society,

Serbia

JAPAN

Japan

North/South America

114

USA
Argentina

27
1

Canada2Paraguay

1

12

Brazil7

Australia

3

Mexico10

1Cambodia1

so as to contribute to the sustainable development

Czech Republic 1

Singapore

4of the economy and society.

Germany

12

Thailand

22

Egypt

Turkey4

Philippines

11

Saudi Arabia 1

Net Sales by Region (Consolidated)

Hungary3

Vietnam9

Tunisia3

Europe and others 3,287

France5

Malaysia

5

Morocco4

Bulgaria

1

South Korea

7

South Africa

2Asia 8,303

7

1

China

Poland4

Hong Kong

5

28,145Mordova

1

Taiwan6

Romania2

Russia5

America 4,947

Japan 11,608

271

Belgium
Total forFiscal 2016(100 million yen)

Middle East & Africa

Asia &
Oceania

EUROPE

57

163
JAPAN

Middle East
& Africa

114

12

G l o b a l Ne t wo rk
17 CSR Report 2017

Sumitomo Electric started to export electric wires, which

In the two power transmission line construction projects forunderlie the industry, during the era of its forerunner,which we received orders in Iran in 1975 and 1977, we faced

Sumitomo Electric Wire & Cable Works, which was founded

not only harsh geographical and weather conditions in thein 1911. In the postwar period, we expanded our business byconstruction area but also unstable political circumstances

exporting full turnkey projects, which covered exports ofsuch as revolution and war. Still, we managed to connect

electric wire products and all services from design tomajor industrial bases of the country and eventuallyconstruction. This leads to the establishment of foundations

complete the projects in 1987.

locals worked together on the project for 11 and a half years
until its completion in 1988.

for the social and economic development of developing
countries and regions all over the world.

Business Outline

single company. A total of 300 Japanese staff and 2,000

Basis for Management

History of the business development
on a global scaleWith respect to products in the business segments as well,
we have promoted localization of the business by setting up a
Governancenumber of production bases in the trend of customer demandfor overseas operation and so on. Through these activities, wehave provided technical guidance and have established an
integrated system of production and sales outside Japan.

Global development by business segment

Full turnkey projects

Beginning with the foundation of our first overseas
manufacturing base in Thailand in 1969, we have promoted

undertaken construction works in Asia, Middle East, Africa

the establishment of overseas bases in consideration ofand South America to lay power transmission lines, whichmarket characteristics and needs for each business segment.

serve as anthat conveys electricity throughout

In the parts of the world in which we have established oursociety, and to build communication networks, which servebases, we are committed to job creation and humanas a nerve system that conveys information.

resource development while aiming to stabilize the local

In particular, the order we received to construct an urban

operation. We now have a total of 280 overseas affiliates

telephone network in Nigeria in 1974 was at that time anwith more than 200,000 employees.

arteryGroup's CSR Activities

Since our first project in Venezuela in 1963, we have

unprecedentedly large communication network construction
Number of employees in Japan and overseas andratio of overseas employees by year

Ratio of overseas employees (%)

83.8

84.2

84
83

82.0

82

(Persons)
250,000
200,000

85

206,323

225,484

240,798

240,865

248,3308180

100,000

48

201,906

202,328

209,094

37,71538,892

38,53739,236

2013

2014

2015

2016

169,175

187,769

37,1482012

Supply Chain

150,000

North/SouthAmerica

50,0000

Ｉn Japan(Fiscal year)

Ratio of Overseas※Sumitomo Electric and consolidated subsidiaries

Sales in Japan and overseas andratio of overseas sales by year

Companies
Consolidated

394

58.8

55.2
48.6

60

50

(100 million yen)

in total(as of March 31, 2017)

Consolidated subsidiaries (357)●
Equity-method aﬃliates (37)30,00028,22829,331

28,14525,68825,00040

21,59920,00015,000

10,48814,17016,46817,461

16,537

11,76011,87011,608

2014

2015

2016

Social Contribution

Breakdown ofcompanies consolidated●

Ratio of overseas sales (%)

59.5

Environmental
Preservation

58.3

Human Resources

Overseas

Products & Services

83.3

84.0

Core
Category

project, even by worldwide standards, to be placed with a

10,0005,000

11,111

11,518

2012

2013

0

Overseas

Ｉn Japan(Fiscal year)

Ratio of Overseas※Sumitomo Electric and consolidated subsidiaries

CSR Report 201718

CSR EYE
MALAYSIAINDONESIAThe Group is making concerted efforts to createa corporate culture where "safety comes ﬁrst"
The Sumitomo Electric Group gives top managerial priority to

MYANMARLAOS"safety" and actively promotes measures toeliminate occupational accidents in

THAILANDVIETNAMCAMBODIA

PHILIPPINES

its production sites around the world.
We are working to improve the level of safety management
on group-wide and global scales and, for example,

SEPM

BRUNEI

MALAYSIA
SINGA
PORE

implementing priority safety activities
every year in ASEAN countries,
where our production sites are intensely located.
This report features relevant activities of

WIN-I
INDONESIA

two Group companies, one in Malaysia and one in Indonesia,
which are clearly showing the results of such commitment.

M A L AYS IA / I N D O N E S IA

19 CSR Report 2017

Basis for Management
Business Outline
GovernanceAs our overseas production sites increase as a result of the globalization of our business activities, it is becoming more andmore important to perform safety activities including danger prediction activities and equipment safety measures as well as
development of the safety and health training system. In response, the Sumitomo Electric Group promotes focused safety
activities that repeat the process of evaluation and improvement to eliminate occupational accidents, such as the Group Global

Group's CSR Activities

Global standards on safety of equipment andsafety management of the Sumitomo Electric Group
penetrating deeply into overseas production sites

Safety & Maintenance Skill Evaluation initiated in fiscal 2009. As uniform company-wide standards, we established global
inspection to prevent serious disasters in conjunction with the Safety & Maintenance Skill Evaluation based on those standards
since fiscal 2015.
bases, we develop unique safety activities in response to the characteristics of the respective countries that have different
cultures and customs so that all employees can further enhance their awareness of safety. Our fine-tuned activities developedwith concerted efforts of the whole Group are now making steady results beyond the sea.

WIN-I

Sumitomo Electric Interconnect Products (M) Sdn, Bhd

Supply Chain

SEPM

Products & Services

In safety activities, it is not appropriate to lump all of our sites in ASEAN together. While using the global standards as theCore
Category

standards for safety of equipment in 2011 and global standards for safety management in 2015, and have conducted

PT. Sumitomo Electric Wintec Indonesia

Human Resources

Business：Manufacture and sales of electronic wire products■

Business：Manufacture and sales of magnet wires■

Number of employees：800■

Number of employees：185

WIN-I was established in MM2100 Industrial Town, Jakarta,
Indonesia in 1995. The company joined the Sumitomo
Electric Group in 2002 and became a wholly owned
subsidiary company in 2008. It mainly manufactures magnet
wires for electronic components.

CSR Report 2017

Social Contribution

SEPM was established in Malaysia in 1988 as a site to
manufacture and sell in-vehicle electric wires and otherproducts. The multi-ethnic employees including Malay,
Chinese and Indian staff, are working for stable supply of
products and expansion of the business.

Environmental
Preservation

■

20

SEPM
Sumitomo ElectricInterconnect
Products (M)Sdn, Bhd

M A L AY S I A

We have successfully raised
awareness of safety and health

Safety Executive,
Safety, Health & Security Section

Shanmugan A/L Sathamparam
Safety and Health Officer (SHO) certified by the national government
Green book holder(Entitled as a Safety and Health Officer (SHO) which was given by Government)"Go Anzen Ni! (Be safe!)" In SEPM, where I am working,allow anyone to recognize danger. Since SEPM has many

everything starts with this greeting. Our company

international employees such as Nepalese as well, risk

endeavored to raise awareness among its employees andsimulation training to experience an accident of being stuck

realized zero disasters in fiscal 2016. I will introduce theor caught and safety training in the mother tongues of thecommitment of the employees to safety activities, as well as

foreign workers were also given. We worked to enhance

support from the safety inspection team of Sumitomo

awareness of safety among all employees beyond language

Electric, which served as driving forces for the achievement

barriers.

of the target.

It started with a review of the organization

Achievement of zero disasters through thoroughimplementation of improvement activities

SEPM had accidents resulting in lost work time for two

SEPM is actively committed to improvement and inspection

consecutive years from fiscal 2013. To learn lessons from

activities based on the bottom-up approach. Thosethe experience, the accidents causing injury were analyzed

activities include inspection by top management for on-siteby cause in terms of the years of experience and the type ofrisk assessment, social gatherings to listen to comments

employment, as well as the accident occurrence part andfrom foreign workers and weekend safety patrols. In

place. As a result, we found that foreign workers with work

addition, an initiative where employees dedicated to safety

experience of less than five years were injured more often

activities communicate with workers called "Walkabout" isand that the work skills of general workers were not very

developed.

high. With recognition that it was an urgent task to review

Inspection by the safety

the safety system, the number

inspection team of Sumitomoof the employees dedicated toElectric to prevent serious

safety activities was increased

disasters also helps identify

from one to two, and all

crucial areas with hazards.

employees were ordered to

As a result of our steady andparticipate in a safety activity

continuous safety efforts toprogram along with Japanese

repeat identification and remediation of hazard sources in

expatriates.

cooperation with the parent division, we achieved zeroCommitment to raising awareness ofsafety among employees

disasters in fiscal 2016. We also launched a new safety
initiative called "Zero Tolerance Activity" under the initiativeof local staff in fiscal 2016. With a strong will to never miss

The program aimed to cultivate the skills of all employees,

any trifles, we will keep working to continuously achieve

including the employees dedicated to safety activities likezero disasters.

me, to think about safety individually, which means raising
their awareness of safety. We firstly focused on"recognition" to learn what is important and "display" to

21 CSR Report 2017

CSR EYE
MALAYSIAINDONESIA

Basis for Management

Close report of a day of《inspection to prevent serious accidents》in SEPM
AM 0 8 : 0 0Preliminary desktop inspection to clarify the areas to check on site

GovernancePM 0 1 : 3 0

Business Outline

The inspection to prevent serious accidents literally aims toprevent serious disasters and equivalent events. A desktop
inspection using a serious disaster prevention check sheet isconducted prior to an on-site inspection, and the safety
inspection team holds interviews concerning the operations andequipment that need to be addressed. Since there are differencesin the recognition of safety among staff in different countries, it isvery important to hold a preliminary meeting using a check sheet.

On-site inspection to eliminate causes ofserious disasters

PM 0 4 : 3 0Group's CSR Activities

The safety inspection team members look around the site to
identify any equipment that is in an unsafe state, any issue thatcan lead to an unsafe action of an operator and any defect inmanagement, and in case of any
finding, they directly interview therelevant workers to understand thecurrent situation. The finding iscommunicated to the workers on the
spot to encourage them to make
improvement.

Sharing of the results and completion of countermeasures

Core
Category

After the on-site inspection, the results are reported. Any issues
and findings identified through the inspection are shared by all
members. Countermeasures are thoroughly taken, and also
introduced into any similar equipment, operations and processes.
The Safety & Environment Department and the Total Plant
Maintenance Department provide follow-up support until thecountermeasures are completed.

Products & Services

Safety Inspection TeamVOICE

To prevent a serious accident from occurring ever again

Supply Chain
Human Resources

"G
Go
G
o Anz
An
Anze
zen
en
n Ni
Ni!" ThThis
is gre
gr
gree
eti
tin
ng w
ng
wit
ith
h a wisw sh toto rai
ra
aise
se
e aw
awa
war
are
a en
ne
ess
ss
s of
of
safety is heard everywhere in SEPM. We feel that theachievement
a
ach
ac
hie
iev
eve
ve
em
e
men
me
ent
nt of
o ze
zzero
ero
ro
o dis
d
disasters
isa
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ters
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s by
by tth
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he
e co
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company
omp
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any
ny
yd
de
dem
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em
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on
nst
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ate
te
es
s th
tthe
he
e
dissemination
d
dis
i sse
sem
em
miin
m
na
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ati
on
n of
o f thethhee tottop-down
op
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-do
dow
own
wn sa
ssafetyafe
afety
fet y acactaactivities
ctiv
ivi
vittiieess as
a s welwewwell
elll aass
voluntary
vol
vo
olu
unt
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ary
y safety
sa
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a fet
ety
ty
y and
a
an
nd
d health
h
he
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ea
a lth
alt
th
h activities
ac
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tivi
viti
tie
ess byb y local
lo
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u
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und
nde
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n it
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ativ
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o the
tth
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h
e employees
e
em
mp
plo
loy
oye
yee
ees
ess dedicated
ded
de
d ed
dic
ica
cate
ted
ed
d to
t o safety
ssa
saf
afe
ety
ty
y activities.
a
act
cttiv
i vit
v itievi
ies
es.. ToT
establish
est
es
sta
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bli
lish
sh
h safessa
afefe
e workplaces,
w
wo
orrkp
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pla
lac
ce
es,
s, we
we will
willl continue
c
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o support
ssup
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ort
rt thetth
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w
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rss from
ffro
rom
om
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al
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tive
ve
e.
(From left) Kenji Kinugasa, Assistant General Manager, Total Plant Maintenance Department
Toshio Hase, Assistant General Manager in Charge, Safety & Environment Department
Michiaki Abe, Safety Division Advisor, S.E.I. Thai Holding Co., Ltd.

Environmental
Preservation

Employees dedicated to safety activities

VOICE

We will continue to achieve the safety targets ofzero accidents and zero disasters

Social Contribution"Go Anzen Ni!" We are responsible for keeping our company in a safe condition as staff
dedicated to safety activities. We will continue to promote initiatives based on participationof employees that encourage them to take voluntary actions in an effort to achieve thesafety target of zero accidents and serve as a model in the Sumitomo Electric Group.
(From left) Shanmugan A/L Sathamparam Safety Executive, Safety, Health & Security Section
Jackson Sinau Baru Assistant Executive

CSR Report 201722

WIN-IPT.
Sumitomo Electric
WintecIndonesia

I N DO N E S IA

We also develop our original activities tohelp the production site maintain safety

Coordinator, Safety Section

John Robert Taka

WIN-I, where I am working, has proudly achieved zero

performance of the company, are held to provide precious

accidents and zero disasters for nine years or more. While

opportunities to directly exchange information on safety

also understanding the approach of the Sumitomo Electric

between managers and employees.

Group to safety and health, our company develops safety
activities tailored to the unique culture and characteristics
of Indonesia, which are introduced below.

Training programs implemented
with strict targets

Focus on dialogues based on
the Indonesian culture

WIN-I also provides various safety training programs to

In Indonesia, people pay less attention to safety whentraining＊. A target attendance rate is set for each program

compared with Japan, and WIN-I therefore works to givein accordance with the training content to develop

safety and health training while setting original slogans anduncompromised safety activities. In the danger prediction

targets every year. Various original safety activities are also

training program, for example, the participation of all

deployed to enhance awareness of safety, including "daily

employees is required, and the training is provided at leastspeech" of employees to send their own messages foronce a month so that all employees can complete theenhancing awareness of safety everyday over the PA

program. In addition, a test is conducted after each training

system, as well as "bell patrol" to inspect the plants whilesession, and only the employees with an accuracy rate ofringing a bell once a day to encourage site workers to be

80% or more pass the test while those who have failed it

prevent accidents and reduce risks, which include danger
prediction training, first aid training, KKP training＊ and K-3

are obliged to take the training
again. As an employee
dedicated to safety activities, I
also organize a monthly session
to report progress in all safety
activities to top managementand discuss how much thetargets have been achieved.

aware of safety. In addition, many safety activities withfocus on communication are developed, such as 1-2-3
activities＊, MSTS activities (safety meetings held in eachdivision), monthly safety meetings and communication
meetings.
In Indonesia, on-site "dialogues" are especially importantbecause Indonesians tend to hold their comments at a
meeting. Based on it, I patrol the plants at least twice a day
as an employee dedicated to safety activities and talkdirectly to the workers in an effort to identify a wide range

Concerted efforts to meet a target

of problems while collecting information on unsafe places

All employees in WIN-I also share the long-term vision andand equipment, etc. Moreover, monthly meetings attended

mid-term targets and plans of the Sumitomo Electric Group,by all employees, at which the President announces thewhich have positive impact on the organization. The stableperformance related to safety in addition to theperformance and high-quality training of the Group are

Glossary ＊1-2-3 activities

23 CSR Report 2017

Activities of leaders in the divisions as well as managers andsupervisors to inspect sites twice (2) in one (1) day to makeover three (3) indications or warning calls to identify problems＊Safety and Health Version of Kiban Kyoka＊K-3 Training(reinforcement of fundamentals) Training Program (KKP)
Practical training on safety and health to learn concepts of andapproaches to safety management, danger prediction, etc.

Health and safety training program speciﬁed by theIndonesian Government "for workers" to prevent
occupational accidents, sickness and disorders

CSR EYE
MALAYSIAINDONESIA

Basis for Management

creating an environment where employees can work for along time with a sense of security. I take pride in working asa member of the Sumitomo Electric Group. Our current
target is to maintain zero accidents for 3,650 days, and I
believe that we can surely achieve it if all employees
continue to make concerted efforts for safety activities.

Business Outline

Safety Activities of WIN-I
Daily speech

Governance

Employees announce their opinions on safety over the PA system every day. Whilesome employees reluctant to participate in this initiative initially after the introduction,
they now understand its significance and all employees are involved in it.

Bell patrol
Employees in charge go on patrol in the plants once a day after the lunch break while
Group's CSR Activities

ringing a bell to encourage site workers to be aware of safety. The purpose is to keep
workers aware of safety with a sense of tension while working. All divisions, including
the manufacturing divisions, are covered by this initiative.

Section Manager of Manufacturing Section

VOICE

Dialogues underpin the safety activities of our company
Core
Category

I think that Mr. John is making a great contribution to safety activities in our company as asafety officer, who is dedicated to safety activities. Thanks to his enthusiasm, themanagement and the employees are able to communicate closely. One Example of this

Products & Services

close communication is the small-scale safety meetings called MSTS, which have beenorganized by Mr. John to promote bottom-up activities by limiting participants to a leaderof a working group and its group members. In this meeting, all the members are able togive comments related to safety freely, while they seldom do the same in formal meetings.
Many of the manufacturing facilities in WIN-I are old as they were originally relocated fromJapan and other production sites, and some of them are not in conformity with global

Supply Chain

standards. Although upgrading of them involves enormous costs including opportunity loss
due to the shutdown of the facilities, as well as facility remodeling cost, we are upgradingthem step by step to eliminate unsafe facilities under the slogan of Safety First and withthe understanding of the management. I would like to be continuously dedicated tooccupational safety and health activities.

Bonar Sinaga
Section Manager of Manufacturing Section

Human Resources

Aiming to develop the world's highest level of safety activities

Environmental
Preservation
Social Contribution

Principles underlying safety activities in the Sumitomo Electric Group are to prioritize safety above all
else and to protect the safety of employees. They are exactly same in our overseas bases. Our
Group, in which the proportion of overseas sales is over 50%, develops activities to thoroughly
disseminate the global standards on facility safety and safety management at overseas bases as well.
SEPM and WIN-I have made extra efforts to perform safety activities and each of them hasestablished a system to gather information on problems identified across the company and improvethem at the initiative of the top management. While they also receive suggestions from Japan on
how to perform safety activities, it is important that local staff think for themselves. The safety
activities designed independently under the initiative of the staff dedicated to safety activities
obviously generate better outcomes. Some of their activities, such as a mechanism to gather
information on troubles at the production field and improve them through small-group activities, areso excellent that they should be also employed at our sites in Japan. While continuously aiming to
be a company with the world's highest level of safety, we will identify any weaknesses in our
activities and improve them for our commitment to the plans following VISION 2017.

Nobuya Ooka
General Manager,
Safety & Environment Department※ The names of the departments and positions are those at the time of the interviews.
CSR Report 201724

Corporate Governance
Basic Approach
Under our corporate philosophy of the Sumitomo Spirit and theSumitomo Electric Group Corporate Principles, our Group
maintains its unwavering basic policy of contributing to society
through our fair business practices. While adhering to this basic

management. We also select three outside corporate auditorswith various specialized knowledge and multifaceted views sothat outside corporate auditors occupy the majority of theBoard of Corporate Auditors, which aims to reinforce themonitoring system for the purpose of ensuring lawful andproper management.

policy, in order to seek sustainable corporate growth and toincrease corporate value over the mid-to-long term, we believethat it is critical to ensure transparency and fairness ofmanagement activities through appropriate corporate

The Board of Directors andthe Business Execution Systemgovernance, as well as to draw up and implement a growth

While the board of directors of a company with a board ofstrategy fully utilizing our management resources, with the key

corporate auditors serves functions to make decisions on andword being innovation. We will be committed to further

supervise business execution, the Board of Directors ofenhancing our corporate governance in accordance with theSumitomo Electric deliberates only important issues among

following basic ideas:

individual subjects, such as major investment items, and focuses(1) We will develop an environment in which shareholders can
exercise their rights appropriately.
(2) We will take the interests of shareholders and otherstakeholders into consideration, and will appropriately
cooperate with them.

on the medium-term business plan, annual plans based on it andquarterly follow-ups of the plans, so that it can appropriately
perform the function to decide basic matters concerning thedirection of the Company, as well as the supervising function.
Independent outside directors are appointed in the Board of
Directors as mentioned above to ensure multifaceted and(3) We will disclose corporate information appropriately andensure transparency.

sufficient discussions in the meetings, in which independent(4) We will emphasize the board of directors functions toto present their opinions actively. As to supervising function of

make decisions on basic policy, including strategies, as wellthe Board of Directors, while we respect opinions of theas to supervise management. We will also focus on

independent outside directors and other independent outsideorganizing systems and operating the Board of Directors to

officers to ensure the independence and objectiveness, we haveensure the effectiveness of such functions. In respect of

set up the Nominating Advisory Committee and theexecutive operations, we have introduced an executive

Compensation Advisory Committee, which are both chaired by

officer system and a business unit system, for the purpose

an independent outside director and made up of a majority ofof clarifying authority and responsibilities, and of

independent outside officers, to enhance the effectiveness. The

establishing a flexible system to execute operations in

Committees give advice when the Board of Directors appoints

response to changes in the business environment. From acandidates for directors and corporate auditors and makes aviewpoint of ensuring sound management, we commit todecision on the compensations of directors.

strengthening audits by corporate auditors and adopting a

Sumitomo Electric holds monthly meetings of the Board of

supervisory system under which independent outside

Directors as well as extraordinary meetings when necessary. In

corporate auditors and full-time corporate auditors work

the meetings, the Board of Directors deliberates and takeswith our internal audit department and accounting auditors

decisions on the matters mentioned above, makes decisions on

to ensure the lawful and proper management.

the basic policy of the internal control system and supervises

outside corporate auditors are also provided with opportunities(5) In order to contribute to sustainable growth and increase

the development and operation of the system. There arecorporate value over the mid-to-long term, we will engage

currently 14 Directors in the Company, who are all male andin constructive dialogue with shareholders to a reasonable

comprised of 12 Executive Directors and two outside Directors

extent.

not involved in business execution. For fiscal 2016, 14

We have established Corporate Governance Guidelines setting
forth our basic ideas and policy concerning corporate
governance, which are made available on our website※ . We
also implement all of the principles in the Corporate
Governance Code.

Directors (excluding two outside Directors) received 814
million yen in total for fiscal 2016.
In 2016, the Board of Directors started to analyze and evaluate
its effectiveness and disclose a summary of the results. In 2017,
it conducted a questionnaire survey of all directors andcorporate auditors including outside officers concerning thefunctions that the board should fulfill to play its role, theOutline of the Structure

current situation of its structure and operation and other issues
in March, and made discussions based on the results. The

Sumitomo Electric has employed the system with the board offindings included that the increase in outside directors andcorporate auditors in consideration of the contribution ofother structural changes have enabled the Board of Directors

corporate auditors and the Board of Corporate Auditors toof Sumitomo Electric to make more active and multifaceted

ensuring sound business management. The Board of Directors,

discussions, that operational challenges have been overcome

the business execution system, corporate auditors and thegradually and that the deliberations at the meetings have also

Board of Corporate Auditors are committed to fulfillment of

become more vigorous. We have thus confirmed that thetheir respective duties in order to achieve sustainable growth

Board of Directors functions effectively in general for playing its

and medium- and long-term increases in the corporate valuerole in determining on important matters and supervising thebased on the basic philosophy.

business execution of directors.

In addition, two outside directors are appointed to adopt an

In the meantime, issues to be solved to further enhance theexternal perspective with the aims of further strengthening theeffectiveness of the Board of Directors were also identified,supervising functions of the Board of Directors and enhancing

including the examination of what structure the board should

the transparency and objectiveness of the businesshave from the perspectives of diversity, etc. and theWeb

25 CSR Report 2017

※ For the details of the Corporate Governance Guidelines, please see the following page.

http://global-sei.com/company/pdf/governance.pdf

conduct audits. Corporate auditors also receive reports fromcontinue to address these issues.

other auditors regarding their audit status, and exchange

To clarify authority and responsibility in the business execution

information with the accounting auditor when required.

system and establish a flexible system that can respond to

The section in charge of internal audits is the Internal Auditingchanges in the business environment, Sumitomo Electric

Department, which surveys any problems and makes proposals

adopted the Executive Officer System and the Business Unit

on improvement to ensure proper and efficient business

System, and has transferred authority to execute businessperformance through audits, including on-site surveys, of ouroperations to Business Units while clarifying their responsibility.

Group companies and other establishments. The department

In addition, to establish an internal check function, our corporate

also collaborates with corporate auditors and accounting

regulations specify the scope of authority of each of the Businessauditors on an as-needed basis in the audits.

Units including the Corporate Staff Group, responsible personnel

The accounting audits and internal control audits to be

for the execution and appropriate business procedures.

conducted by accounting auditors are outsourced to KPMG

Business Outline

authorization documents and visit major establishments todiscussions can be made. We have confirmed that we will

Basis for Management

development of an environment where more in-depth

AZSA LLC.

As to the corporate auditors and the Board of Corporate
Auditors, as mentioned above, the majority of the corporate

Governance

Auditing and Supervision Systems

Ensuring Appropriateness ofFinancial Reporting
promote control in the Corporate Staff Group. Under theirstaff to corporate auditors, are in charge of monitoring inpolicy, guidance and support, we promote development andcooperation with the Internal Auditing Department andproper operation of the internal control system in each divisionaccounting auditors to ensure lawful and proper corporate

and affiliate in accordance with the Financial Instruments andmanagement.

Exchange Act, as well as the assessment, audit criteria andFive corporate auditors, consisting of two full-time auditors andenforcement criteria specified by the Financial Services Agency.

three outside corporate auditors including a female one,Thus, we are committed to further improving the systems toconstitute the auditing system to audit the business execution

ensure appropriateness of financial reporting. The Internalof directors. The Board of Corporate Auditors establishes audit

Auditing Department assesses the effectiveness of the internalplans and policies, in accordance with which each corporate

control system of the whole Group for each fiscal year. Basedauditor fulfills his role, as assigned by the Board of Corporateon the results of such assessment, the department is required

Auditors. Specifically, corporate auditors attend important

to compile an internal control report to be submitted to themeetings including those of the Board of Directors, conduct

Financial Services Agency and obtain the approval of thehearings with the directors, Internal Auditing Department and

Financial Reporting Internal Control Committee and the Board

other employees regarding their duties, inspect importantof Directors.

Sumitomo Electric Group's corporate governance structure

Supply Chain

General Meeting of Shareholders
Appointments / dismissals

Board ofDirectors

Audit

Management
Conference

President

Accounting
Audit

Board ofCorporate
Auditors
Corporate
Auditors

Accounting
Auditors

Cooperateer

R&D Unit

Aﬃliates in Japanand Overseas

Production UnitsAﬃliates in Japanand Overseas

at

Audit

e

Environmental
Preservation

Sales UnitsAﬃliates in Japanand Overseas

CooperateCoop

Human Resources

Chairman of
the Board of
Directors

Internal
Auditing
Department

Social Contribution

Cross-Sectional
Risk Management
Activity etc.

Risk Management Committee
Compliance Committee
Corporate
Staﬀ Group

Products & Services

Committee, chaired by the President, and an organization toauditors, along with full-time corporate auditors and dedicatedCore
Category

We have established the Financial Reporting Internal Control

various specialized knowledge and multifaceted views. These

Group's CSR Activities

auditors are independent outside corporate auditors with

Corporate Environment Committee
Information Management Committee
CSR Committee

CSR Report 201726

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.

Basic Policy of Risk Management
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●

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

Risk Management System
The Sumitomo Electric Group holds a meeting of the Risk
Management Committee, which controls overall risk
management activities, in conjunction with a meeting of the
management conference. The Risk Management Steering
Committee is responsible for actual implementation under the
Risk Management Committee, and its tasks include formulationof risk management policies, establishment of task forces at thetime of an emergency, collection of information and planningand implementation of risk management education. The Risk
Management Office serves as the organizer for thesecommittees.

Risk Management System
Board of Directors

Company-wide
Committees

Management Conference

Compliance Committee

Risk Management Committee

CSR Committee

Risk Management Steering Committee
Risk Management Oﬃce

Public Relations
Committee
Corporate Environment
Committee

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

Business Units, Sales Units,
Research & Development Unit

Divisions
Risk manager

27 CSR Report 2017

Risk manager

Aﬃliates
Risk manager

Risk management activities of the Sumitomo Electric Group arebased on taking inventory of risks that is conducted by each
unit and each affiliate. In the inventory, which is conductedannually, the signiﬁcance of each of the risk items isdetermined by scoring its severity, probability of occurrence
and other factors. Measures to deal with any significant risks
are discussed and taken.
Annual results of the risk inventory are shared with executives
and the corporate staff divisions. With mutual cooperation
between them, risk management activities are promoted
steadily.

《 Creation and Management of a Risk Heat Map 》
The Sumitomo Electric Group is making efforts to establish amore efficient mechanism for risk management so that it can
respond to the expansion of the business fields and changes inthe external environment effectively. We compiled a databaseof the results of risk inventory and information on the identified
risks, as well as the results of operational audits and othermonitoring activities, and created a risk heat map based on the
database to visualize the risks to each of the units andaffiliates. This map enables each of them to take measures toaddress the items with higher risk levels preferentially andenhance the efficiency and effectiveness of the risk
management activities.

Initiatives for Business Continuity《 Promotion of Business Continuity Management (BCM) 》
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. We also promoted business
continuity management (BCM) for continuous improvement of
the BCPs. In addition, we review the BCPs periodically, verify
the effectiveness of the emergency response plan and takeinventory 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.
Moreover, to further enhance the effectiveness of BCPs, weorganize a table top exercise in which interested persons fromrelevant divisions gather to check the BCPs of specific units andaffiliates. This exercise is conducted twice a year to reinforce
our business continuity capabilities.

《 Continuous Implementation of Group-wide Joint Emergency Drills 》
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.

《 Cooperation with Local Communities 》
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.

The Sumitomo Electric Group improves the information
management system and revised rules and enhance themechanism to prevent information leakage in each of its
divisions and affiliates. Regarding the use of social media, webasic approach to its use, as well as social media guidelines,
which provide specific issues to be noted. The policy andguidelines serve to raise the awareness of employees. We willcontinue to promote information management of the Group by
improving the system in domestic and overseas affiliates andenhancing the internal training program designed for《 Protection of Personal Information 》
In accordance with its Personal Information Protection Policy,
Personal Information Protection Rules and other rules,
Sumitomo Electric properly deals with the personal informationof customers, business partners and employees handled in thecourse of its business while complying with laws, regulations
and other standards relating to the protection and use of
specified personal information in November 2015 to ensurethat such information is handled properly in accordance withlaws and regulations and to prevent leakage and otherproblems. In addition, we revised the aforementioned policy

Target of
the training

No. ofNo. ofsessions participants

Main content

Staﬀ in chargeof classiﬁcation

16

121

Tasks on how to classify
goods and technologies

Export control
sections

34

931

Export control practiceGeneral employees〈e-learning〉

―

1,094

Outline of export control
and internal rules

Domestic
aﬃliates

2

53

Outline of export control

Overseasaﬃliates

6267

Outline of export control
and issues to be noted inforeign countries

and rules in May 2017 in response to the full implementationof the amended Act on the Protection of Personal Information.

《 Strengthening of Information Security Measures 》
pivotal role in the four countries of China, Thailand, Indonesia
and Malaysia as basis of our global expansion and worked toThis commitment has led to such results as the reduction of
the risk of infection with computer viruses and theimplementation of information security training.
We are taking measures to prevent the leakage of information
on trade secrets and other important management assets on a
intrusion prevention systems (IPS), data encryption in mobile
computers and USB devices and automatic encryption of files
attached to emails. In addition to these, we launched new
initiatives in fiscal 2016 including training to respond totargeted attack emails, trial introduction of AI-based
malware, investigation of the traces of hacking in specificdivisions and establishment of a mechanism to investigate anddetect any illicit acts using log information of servers andnetwork devices.
With respect to the structure, the newly established SEI-CSIRT
central role in our efforts to promptly identify and respond to
any incidents relating to information security in our Group
companies.

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 of

CSR Report 2017

Social Contribution

Security Trade Control

Environmental
Preservation(Computer Security Incident Response Team) is now playing a

Human Resources

anti-malware software to enhance protection from unknown

Supply Chain

global scale, including installation of antivirus software andSumitomo 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 othercompanies.
To this end, we have developed a rule on handling ofintellectual 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 othercompanies, formulation of strategy and response from theperspective of intellectual property-related laws andregulations. In order to improve IPR consciousness throughout
the Group, we hold a group-wide Intellectual Property Right
and Standardization Convention every year to commend thestrategic applications that are highly likely to make acontribution to our business performance as well as theexcellent cases that have greatly improved business results.
We also organize in-house training programs that match theexperience and level of proficiency of each employee, andpublish 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 throughthese IP activities, we received the Minister of Economy, Tradeand Industry Award as part of the FY2013 Intellectual Property
Achievement Awards organized by Japan's Ministry of Trade,
Economy and Industry (METI).

Products & Services

enhance information security measures through the Committee.

Intellectual Property Protection
Core
Category

We have set up an ICT Management Committee that plays aGroup's CSR Activities

personal information. We also formulated the rules for handling

Record of Various Training Sessions in Fiscal 2016
Governancedisseminating the policy and guidelines.

Business Outline

have also established a social media policy, which specifies our

individual 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 export activities, andshare information between different divisions within the
Company and between affiliates through various committees toreduce the risks in the security trade control activities of theentire Group.

Basis for Management

Protection of Personal Information,and Information Security

28

Compliance
Efforts to Pursue Fair Business
Activities Worthy of Society's Trust

provided with training seminars. The regular training seminars

Sumitomo Electric believes that complying with laws andcompetition laws and prevention of bribery, and we also

regulations and acting in accordance with corporate ethics

disseminate the Speak-Up System as mentioned below.

comprise the backbone of its management, represent its
social duties as a corporation and form the absolute basis forfor managers are held from April to August concerning such
subjects as prevention of illicit acts, compliance withTargetPeriodits continued existence and development.

Oﬃcers (including executive oﬃcers)

Dec. 2016

In particular, we consider compliance with competition laws
to be a top priority issue, and since the formulation of theManagers of Sumitomo Electric andits subsidiaries in Japan

Apr. - Aug. 2016

Rules for Compliance with Competition Laws in June 2010,

New employees of Sumitomo Electric

Apr. & Oct. 2016

Newly promoted personnel

Feb. - Mar. 2017

we have worked to strengthen the competition law
compliance system through the establishment of a system toensure that the regulations are implemented by specializedorganizations and other measures.
Under the principles of the Sumitomo Spirit, which values

Speak-Up Systemdoing your sincere best not only in business but also every
aspect of your life, placing importance on integrity and not

Sumitomo Electric established the Speak-Up System as aacting rashly or carelessly in pursuit of easy gains, we will

system to identify any compliance-related issues at an earlycontinue to make all efforts to ensure that all corporatestage and resolve them by ourselves in a prompt and proper

activities are conducted fairly and honestly and can bemanner. Specifically, we set up contacts for reporting andtrusted by society.

consultation by employees, business partners and otherparties not only in the Company but also outside it byCompliance Committee
The Sumitomo Electric Group has established theCompliance Committee, chaired by the President, as anorganization that promotes measures necessary to develop
and further strengthen the compliance system. The
Committee engages in various activities, including preparing
and distributing the Compliance Code of Conduct andorganizing compliance training seminars. In addition, theCommittee identifies and analyzes group-wide compliancerisks, disseminates preventive measures and monitors thecompliance activities implemented by each division andappointing a law firm and a specialized call center firm, andthe issues reported through this system are addressed withimmediate investigation to take necessary action. Sumitomo
Electric has also instructed Group companies in Japan andoverseas to establish their own in-house consultation
contacts, while developing domestic and overseas external
contacts at the same time so that they can be used by Group
companies, to develop and operate the Speak-Up System ona global scale. We introduce the outline of the system at thetime of various internal training sessions and also work todisseminate it through monthly in-house magazines and theSumitomo Electric Group Compliance Code of Conduct.

subsidiary. In fiscal 2016, the Committee held four meetings(May, August and November 2016, and February 2017).

Strengthening of
the Competition Law Compliance System

Compliance Code of Conduct
The Compliance Committee has prepared the Sumitomo
Electric Group Compliance Code of Conduct, which explains
specific instructions to be followed by employees in their
daily work and other situations so that they can act in asocially acceptable way from legal and ethical perspectives.
The Code is also based on the Sumitomo Spirit, theSumitomo Electric Group Corporate Principles and theSumitomo Electric Group Charter of Corporate Behavior.
While the Compliance Manual used to be distributed to theemployees of Sumitomo Electric and its subsidiaries in Japan,
we revised the overall content of the manual, and alsochanged the title to Code of Conduct.

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

29 CSR Report 2017

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
In June 2010, Sumitomo Electric formulated new Rules forCompliance with Competition Laws, which containprovisions restricting contact with competitors, and put
them into effect. We then promoted the introduction ofsimilar rules and regulations into our subsidiaries in Japan
as well as overseas subsidiaries with a sales function, andwe are currently operating competition law compliancerules throughout the Group.

２. Forming dedicated organizations andestablishing an auditing system
In June 2010, Sumitomo Electric formed the Competition
Law Compliance Office in its Corporate Staff Group and themanagement, corporate ethics and the Sumitomo Spirit,
Sumitomo Electric organizes visits to affiliates to provide
compliance training for top executives and local managers ofoverseas affiliates.
compliance training programs designed for local managers ofoverseas affiliates, which included the basic course (from
April 2008 to September 2009) and the advanced course

Supply Chain

Our staff visited our main overseas offices and organized

Products & Services

scale based on a wide concept including complianceCore
Category(from January 2010 to June 2011), with the aims ofdeepening the awareness of compliance and creating a senseof unity as a member of the Sumitomo Electric Group. We
also send the CD recording of the lectures, along with thetraining materials used in the previous training programs, tooverseas affiliates, which include the companies that we
could not visit due to the schedule or for a geographicalreason, so that such affiliates can arrange compliance training
In addition, competition law basic course seminars wereorganized from October 2011 to September 2012. Since
January 2014, we have also provided training sessions foroverseas bribery prevention managers, and organized internal

Environmental
Preservation

programs in a voluntary and continuous manner.

Human Resources

training sessions provided by these managers, as part of theanti-bribery measures mentioned above. The competition law
compliance training is also provided through the e-learning
system worldwide.
We will continuously endeavor to further improve thecompliance system of each overseas affiliate throughcooperation with the relevant divisions.

CSR Report 2017

Social Contribution

While the Compliance Manual we previously introduced
also identified competition laws as a priority matter to beobserved, we established new Rules for Compliance with
Competition Laws (sales-related) for employees that also
take account of foreign competition laws and clearly specify
prohibited conducts and matters to be observed 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 of the same year, as well as in thecompliance special training seminars held in fiscal 2013.
We will continue to make efforts to ensure compliance withthe guidelines.

To develop a Group-wide compliance system on a global

Group's CSR Activities

４. Establishing action guidelines forcompetition law compliance

Developing the Compliance Systemamong Overseas Group Companies

GovernanceIn 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.

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 Bribery Prevention
Compliance Policy in response to the recent tightening of
regulations on bribery of domestic and foreign public
officers in the US, Europe and emerging markets. One
bribery prevention officer and one bribery prevention
manager are appointed in each unit to build a system toapply the rules.
The anti-bribery program, which has been conducted formore than four 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, including
lectures by local attorneys, for the bribery prevention
managers in the respective countries from 2014 to thebeginning of 2015, and also organized internal training
sessions by bribery prevention managers in overseas
companies from October 2010 to March this year. We willcontinue to work to maintain and enhance the global
bribery prevention and compliance system throughcontinuous education, review of the operation manual andcollection and dissemination of relevant information.

Business Outline

３. Enhancing and continuing compliancelaw training

Anti-bribery Measures

Basis for Management

Sales Compliance Office in Sales Units as organizations
dedicated to promoting compliance with competition laws.
The Company also appointed a competition law
compliance manager and a person in charge of promoting
the compliance at each of other units. In addition, weestablished 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
involved in actual business activities. By introducing therules to restrict contact with competitors based on theRules for Compliance with Competition Laws and promoting
related activities such as monitoring and auditing ofcompliance with competition laws and the Rules forCompliance with Competition Laws, we will develop an
effective system involving the front-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.

30CSR Management
CSR Basic Policy
The Sumitomo Spirit, which gives top priority
to social credibility and corporate ethics, isdeeply instilled into the Sumitomo ElectricGroup. With the Sumitomo Spirit, as well as theSumitomo Electric Group Corporate Principles,
serving as the basic value standards that guideus, we are contributing to a better society andenvironment through business operations in linewith compliance regulations.
We have taken measures based on the five CSR
core categories specified in fiscal 2013:
products & services; supply chain; humanresources; environmental preservation; andsocial contribution. We will establish good
relationships with stakeholders and continue
sustained growth with the aim of becoming a
Glorious Excellent Company, i.e., realizing theideal state of the Sumitomo Electric Group, so
as to fulfill our corporate social responsibility.

Contribution toa better society andenvironment

Basic
componentsof CSR

Social contribution throughbusiness operations

Five CSR core
categories

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

Basic value
standards

Contribution to
the establishment ofa sustainable society

From FY2013

Five CSR core
categories

Priority themes for achievement of

CSR priority themes the targets for VISION 2017

Products & services
Supply chain

Solutions tosocialchallenges

Innovation
Promotion of CSR procurement

Human resources

Promotion of diversity

Environmental
preservation

Prevention of
global warming

Social contribution

Promotion of social contribution activities at business locations /Contribution through the SEI Group CSR Foundation■

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
below, the Committee conducts its activities as a cross-sectionalorganization to promote CSR initiatives in the Sumitomo Electric Group.
The roles of the CSR Committee include:

Society (stakeholders)External disclosure

1. Holding semiannual meetings to review the CSR
activities from a group-wide perspective and give
support and guidance on the future development.
2. Promoting internal and external information
disclosure and public hearings on CSR.
3. Promoting CSR education programs throughout the
Sumitomo Electric Group, etc.

Management Conference: Deciding CSR basic policy

Public hearing function

Report on objectives and results

Instructions and guidance

Department in charge

Category

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

Information
disclosure

RiskManagement
Oﬃce

Public Relations
Dept.

Legal Dept.

Information
Systems Div.

IR Oﬃce,
Accounting Div.

Promotion and education ofbusiness philosophy and visions

Five core categories

Products & Services

Supply Chain

Quality Management Div.
Logistics Management Dept.
Sales Planning & Marketing Div.
R&D Planning & Administration Div. of R&D Unit
Planning and Administrative Departments in each Business Unit
Safety & Environment Dept.
Information Systems Div.

Public hearing function

Employees

Human Resources

Environmental
Preservation

Human Resources Div.
Procurement
Div.

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

Target and achievement report

Safety &Environment Dept.
Logistics
Management Dept.

Administration
Div.

Support and guidance

Sumitomo Electric Group companies

Glossary ＊KPI

31 CSR Report 2017

SocialContribution

Key Performance Indicators

Relationships with Stakeholders

GlobalEnvironment

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

Customers

We provide customers across the world witha wide range of products and services in ﬁve
categories: Automotive; Infocommunications;Electronics; Environment & Energy; andIndustrial Materials.
The Sumitomo Electric Group conducts
business activities through 394 companies
located in approx. 40 countries all over theworld (as of March 31, 2017).

Shareholders
andInvestors

The total number of our shareholders is approx. 54,000,
and the number of shares issued and outstanding isabout 800 million. By type of shareholders, ﬁnancial
institutions and foreign holders own 40.40% and 40.07%
of the shares respectively, followed by Japaneseindividuals and others (10.76%) (as of March 31, 2017).

Suppliers

The Partners' Meeting held in ﬁscal 2016
gathered approx. 90 of our main suppliers.
(FY2016)

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

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

●

●

●

●

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
●

●
●

●

●

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

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

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

●

●
●

●

●

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

●

●
●

●

●
●

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

●

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）

100

71

84

85

2015

2016

Press release

2015

2016

Interview

45

2015

29
2016

President's
blog

7

6

2015

2016

Blog
Smile Relay(Fiscalyear)

CSR Report 2017

Social Contribution

61

50

0

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 the 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
2016 to help our stakeholders improve understanding of theGroup.
In our activities to sending information via our websites, weenhanced their content. For example, we posted a video on
the demonstration of our concentrator photovoltaic system in
Morocco on the page about the energy field and renewed
the content introducing the activities of our athletics club.
While Sumitomo Electric has been a special sponsor for theLake Biwa Mainichi Marathon since 2013, we have launcheda special website for the marathon every year.
In January 2015, in an effort to enhance awareness of ourbrand, we launched a visual identity (VI) project, which aims
to give consistency to designs, logos, colors and fonts used
for company communications throughout the Sumitomo
Electric Group and establish a common impression andworldview. Since the launch, we have made continuous
efforts to disseminate the VI concept by applying it to various
publications and promotion materials.

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

Employees

The Sumitomo Electric Group has approx.
248,000 employees consisting of approx.
39,000 employees in Japan and approx.
209,000 employees in other countries.
More than 80% of the Group employees thus
work outside Japan (as of March 31, 2017).

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

Governance

Local Communities
andNPOs/NGOs

Main means of communications

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

Business Outline

Sumitomo Electric Group

CentralandLocal Governments

Main responsibilities of the Sumitomo Electric Group

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 2016 /Main Targets for Fiscal 2017
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 2016 and targets for fiscal 2017 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.

Supply chain

Products & services

Core
Category

Main Targets for Fiscal 2016

Results in Fiscal 2016

Evalu
ation

Page

Reduce complaints by 19% from theprevious ﬁscal year
(The target may be revised according tochanges in the data collection approach)Decreased by 21% from the previous
ﬁscal year
(calculated based on the actual numberof complaints)○

41

Continue to promote own process
quality assurance activities(seventh year)① Completed the development of themechanism for Design and/or
process change control② Company-wide development of
the 3 points control of quality② Started the "3 points control of
quality at about 80% of thedomestic plants④ Published 4 booklets and held 2
exchange meetings to introduce
good practices⑤ Development of education in
China, ASEAN and North America⑤ Developed global textbooks of "Quality
Control:The Basics of Basics For
Supervisor and Foreman" andorganized lectures in China and ASEAN

Continue to make requests basedon the CSR Procurement
Guidelines to individual suppliersand expand the initiative●

Promote the expansion of suppliermonitoring●

Continue to implement the training
program that supports compliance●

Extend the application of common
basic rules on procurement tooverseas Group companies●●

Human resources③ Conducted 266 activities onpractical themes in a year

④ Introduction of good practices
through booklets and exchange
meetings●

Implement the Global HRM Policy① Promotion of the talent management
cycle② Setting of personnel rules to becommonly applied on a global scale
Develop global activities of the HR
Division① Dispatch of trainees from the HR
Division② Acceptance of local employees ofoverseas Group companies into the
HR department③ Dispatch of HR expatriates to Europe

Develop the SWiTCH 17 Campaign(third year)●

Initiatives for the review of working
styles (development of the
momentum and design of thesystem)●Continuous implantation ofcommunication measures in eachestablishment and examination ofcompany-wide measures●●

33 CSR Report 2017

Mental healthcare measures aspart of healthcare measures basedon the Health Management
Declaration (use of a stress level
test)
Discussion of action guidelines forﬁscal 2018 and thereafter

Reduce complaints by 9% from theprevious ﬁscal year

Continue to promote Own Process
Quality Assurance Activities(eighth year)① Completion of the developmentof the mechanism for Design
and/or process change control③ Stimulation of theme-based
activities and expansion of thescopeMain Targets for Fiscal 2017●

In Japan: Conducted a CSR procurement
questionnaire survey targeting about 300
suppliers of 16 aﬃliates●

Overseas: Expanded the CSR procurement
questionnaire survey to additionally target
the suppliers of 5 International Procurement
Oﬃces (IPOs), and conducted the survey ofsome aﬃliates in each region on a trial basis●

Compliance training: Provided to
3,016 persons including employees ofaﬃliates in the Group (the number
increased by 10% from the previous
year)

●

Basic rules for procurement: On-site
inspection was conducted in 9
aﬃliates in China●

Identiﬁed human resources andcontinued to organize human resource
meetings at Business Units●

Prepared various guidelines concerning
personnel matters outside Japan,
which are scheduled to be released
serially from ﬁscal 2017●

Dispatched a trainee from the HR
Division to Indonesia for 2 months●

A person from a US aﬃliate was
accepted as a line manager of the HR
Division in July 2016●

Deployed an HR expatriate in Vietnam
in July 2016

Joined the Ikuboss Corporate Alliance inAugust 2016. Provided managers withtraining to "review the working style"● Introduced a work-from-home systemfor employees who are restricted interms of working time for child-raising,nursing care and other reasons● Introduced a discretionary labor system
into the R&D group● Used the results of the surveys tocreate a lively work environment, as
well as opinions presented in town
meetings, in the examination of humanresource management measures● Conducted a stress level test and took
follow-up measures based on the
results including training sessions andinterviews① Strengthening of quality initiatives
in the design process② Company-wide development of
the 3 points control of quality(improvement of the activities)

○

39
40

③ Expansion of activities performedon practical themes④ Continuance of activities forcompany-wide dissemination(through the issuance of booklets
and holding of exchange meetings
about Own Process Quality
Assurance Activities)

○

○

△

44

●

Continue to implement the training
program that supports compliance●

Extend the application of common
basic rules on procurement tooverseas aﬃliates●

Realization of the Global HRM Policy① Continuance of promotion of thetalent management cycle② Continuance of eﬀorts to clearly deﬁne
the personnel rules to be commonly
applied on a global scale in writing●

Develop global activities of the HR
Division① Dispatch of trainees from the HR
Division② Continuance of HR manager meetingsof overseas Group companies③ Use of English as the language at themonthly liaison meetings of Human
Resources Centers

46

47
48

●

52
○

Request suppliers in Japan andoverseas to take actions based on
the CSR Procurement Guidelines,
and promote the implementation of
the CSR procurement questionnaire
survey53

Develop the SWiTCH 17 Campaign(ﬁnal year)● Strengthening of initiatives with focus
on the review of working styles. Aim
to reduce total working hours to
1,900 to 2,000 hours in a year andencourage each employee to take 15
paid holidays on average in a year●

Continuous implementation ofcommunication measures in eachestablishment and examination ofcompany-wide measures●

Launch of "Kenkatsu!" activities to assist
employees in maintaining and improving
their health ( Kenkatsu! is a coined
term meaning activities seeking health)●

Discussion of action guidelines forﬁscal 2018 and thereafter

54

RelatedSDGs

Main Targets for Fiscal 2016

Results in Fiscal 2016

Eliminate serious accidents andaccidents resulting in lost work time, andreduce the total number of no lost work
time accidents and accidents causing
minor injury to 30 or less

Serious accidents: 0, accidents resulting inlost work time: 11, no lost work time
accidents + accidents causing minor injury:
27

Evalu
ation

Page

Main Targets for Fiscal 2017△58

Reduce serious accidents and accidents resulting
in remaining disabilities to zero, and reduce thetotal number of accidents resulting in lost work
time, no lost work time accidents and accidents
causing minor injury to 24 or less

Implement priority items for ﬁscal 2017
(measures to be taken continuously)

Implement priority items for ﬁscal 2016●

Promote the establishment ofimportant safety activities●② Safety! Power OFF Activity③ Activities for ensuring safety inmulti-worker operations④ Prevent recurrence of similar accidents●●

Methods for implementation① Stimulation of bottom-up activities
with a top-down approach② Identiﬁcation of daily changes andproblems through the 1-2-3 activities

Inspected Power OFF Activity andactivities for ensuring safety inmulti-worker operations. Identiﬁed
357 and 567 problems, respectively;
measures to deal with them arecurrently being taken

Out of the 14 items, Performanceachieved the targets: 12 items,
Performance failed to achieve thetargets: 2 items

○

▼

60

○

Continue the practical training, inwhich simulated diagnosis isconducted using the actual products
based on hiyari or near-missreports and past audits

740 persons participated in managerial
post-based training

61

Implement the following fund projects① Monetary contributions to university
courses: 93 million yen

○

73
74

●

Participated in the TABLE FOR TWO
program and donated 20 yen fromthe sale of each low-calorie meal○74

② Subsidies for academic and research
programs: 30 million yen③ Supply of scholarships: 42.1 million
yen

Promote partnership andcooperation with nonproﬁtorganizations (NPOs) for the support
the reconstruction of the Tohoku
Region and other initiatives

Social Contribution

Held a market of specialties from the
Tohoku region to support its
reconstruction from the Great East
Japan Earthquake

Environmental
Preservation●

Human Resources① Monetary contributions to university
courses: 87 million yen in total for 8
courses② Subsidies for academic and research
programs: 37.9 million yen in total for
31 programs

Supply Chain

Social contribution

62

Overseas: Conduct legal compliance
audits (China, ASEAN andthe US)

Products & Services

Environmental preservation

In Japan: Continue legal
compliance audits

Overseas: Conducted at 1 site (in the
US)③ Supply of scholarships: 36.9 million yen
in total for 141 persons

Support the reconstruction of the
Tohoku Region and the areasaﬀected by Kumamoto Earthquakes,
and promote partnership andcooperation with NPOs

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

Conduct environmental audits○

Increase monetary contributions touniversity courses, grants toacademic and research activities andscholarships supplied through thefund (a total of 166 million yen)Re-establish safety culture① Promotion of "Po-Ke-Te-Na-Shi"
activities＊ and elimination of unsafe
actions② Identiﬁcation of weaknesses to share themon a company-wide scale and setting of
the "state that the company aims to be"CoreCategory

Continue the managerial post-based
training, in which simulated
diagnosis is conducted using theactual products based on hiyari ornear-miss reports and past audits●

58

In Japan: Conducted at 10 sites

Overseas: Complete the ﬁrst seriesof legal compliance
audits

Education and training

Promote the establishment of thefollowing priority safety activities① Activities to prevent serious accidents② "Safety! Power OFF Activity"③ Activities for ensuring safety inmulti-worker operations④ Prevention of recurrence of similar
accidents involving injury

57

Conduct environmental audits
In Japan: Promote the second
series of legal compliance
audits●Group's CSR Activities

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

Conducted an inspection to prevent
serious accidents in 129 bases inJapan and overseas
Identiﬁed a total of 463 problems in
the inspection; measures to deal withthem are currently being taken

Governance① Activities to prevent serious accidents

Related
SDGs

Business Outline

Human resourcesCore
Category

Basis for Management

In the Sustainable Development Goals (SDGs) adopted at a UN summit in
September 2015, it is specified that companies should also be committed
to the achievement of the goals in a voluntary manner. The main targets for
the Sumitomo Electric Group include the fields and themes closely related
to the 17 goals.

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 ＊"Po-Ke-Te-Na-Shi" activities

This slogan represents basic rules to be followed while walking. Po: Do not put your hands in your Pockets while walking; Ke: Do not use
cellular phone (Keitai denwa in Japanese) while walking; Te: Hold the railing (Tesuri in Japanese) while climbing or descending stairs; Na: Do
not cross a street at an angle (Naname in Japanese); and Shi: Look both ways (Shisa in Japanese) before crossing a street

CSR Report 201734

■

CSR Core Category

Products & Services■

We will contribute to enhancing the information
capacity of global optical communication systems
with ultra-low loss optical fibers

CSR Priority Theme

Innovation
Our social contribution begins withthe development of products andservices that meet new social needs
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 creationof a sustainable society.
◉ Expand into integrated business ﬁeldsContribution to the establishment of asustainable society with a new style of electric
power and energy◉ Enter the life-science business ﬁeld
◉ Enter the resources business ﬁeld

In recent years, due to the widespread use of smartphones and the expansionof the IoT, there have been increasing demands for improvement in theperformance of optical communication systems. Our ultra-low loss optical ﬁber,
Z-PLUS Fiber™, has been deployed in submarine cables that support
communication infrastructure to contribute to the expansion of information
capacity. The R&D team, to which I belong, have been challenging to reduce
light scattering loss from ﬂuctuations in a refractive index by fabricating the coreof the ﬁber by pure silica glass with microscopic disorders reduced as much as
possible. In addition, we have continuously developed and improved various
ﬁber-related technologies including ﬁber refractive index proﬁle design,
manufacturing processes and resin coating technology . As
a result of this and other technical development, we
set a new world record for the lowest loss of
optical ﬁber, 0.1419 dB/km, in 2017.
In recognition of our contribution overmany years through research anddevelopment eﬀorts and supply of
products, we received the 31st
Kenjiro Sakurai Memorial Prize.
S u m it o m o E le c t ric h as b e e n t h eleader in the ﬁeld of ultra-low loss
optical ﬁbers for more than 30 years
and realized various technicalinnovations of communication
infrastructures. I am proud of being amember of the company and would liketo continuously contribute to solving
problems as a researcher leading this ﬁeld.

Yoshiaki Tamura

Assistant Manager, Optical Transmission Media Department,
Optical Communications Laboratory

Research & Development
Won the 31st Kenjiro Sakurai Memorial Prize from the Optoelectronics Industry andTechnology Development Association for recognition of our efforts to develop andcommercialize ultra-low loss optical fibers for submarine cables
Masaaki Hirano, Group Manager
Yoshinori Yamamoto, Assistant Manager
Yoshiaki Tamura
Yuki Kawaguchi,
Optical Transmission Media Department,
Optical Communications Laboratory(The names of the departments and positions are those at the time of winning the prize)

high-capacity transmission. The ultra-low loss optical ﬁbers
developed by the laboratory had a minimum transmission
loss of 0.149 dB/km and an average transmission loss of
0.154 dB/km as manufacturing basis, breaking the
research-level record in the world at that time and stillretaining the record as commercialized products in theworld today. The products have already been adopted in

Optical Communications Laboratory of Sumitomo Electric

several submarine optical cable projects, such asreceived the 31st Kenjiro Sakurai Memorial Prize from thea trans-paciﬁc

Optoelectronics Industry and Technology Development

subsea optical

Association, Japan, in January 2016 for recognition of its

ﬁber cable projecteﬀorts to develop and supply ultra-low loss optical ﬁbers forfor high-capacity

submarine cables. The prize was established in 1985 totransmission,

recognize the contribution by the late Kenjiro Sakurai, asigniﬁcantly

former director of the association, to the development of thecontributing to theoptoelectronics industry, as well as to promote further

global expansion

development of and education within the industry.

of optical ﬁber

We received the prize this time for reducing transmission

communication

loss of optical ﬁbers and successfully developing ultra-low

networks.

loss optical ﬁbers as products suitable for long-distance and

35 CSR Report 2017

Z-PLUS Fiber™ 150 ULL, ultra-low-loss optical ﬁber

Technology is the engine of the future and the very source for
growth. From our origins as a copper business, we havedeveloped a wide variety of technological bases.
products with due consideration of future social needs, andfurther accelerate our commercialization of technology infollowing principles: Attaching importance to technology
and Building technical expertise, realize changes and strive
for consistent growth. Our efforts have resulted in many
ingenious products. We believe this recognition is due to thecollective effort of the Sumitomo Electric Group.
With our superb creativity, the Sumitomo Electric Group willcontinue to develop original, excellent technologies,
anticipating social changes and technological trends.

response to this time of rapid change.

Receiving Top 100 Global Innovators
Award 2016

(Number of patents)
9,000
8,000
7,000

Award 2016 for four straight years from 2013.

5,000

This award is given by Clarivate Analytics to 100 companies

4,000

and organizations that are vigorously working on innovative
developments, are committed to protection of intellectual

5,411

6,824

7,030

7,067

2013

2014

2015

8,343
7,611

0

2011

2012

In Japan

2016(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.
●

development of new products and businesses that will●

Invention Incentive Award in FY2016
Kinki Region Invention Awards

Group's CSR Activities

The Sumitomo Electric Group has been pushing ahead with

Commendation forInvention in Fiscal 2016

6,225

8,014

3,000

property rights and have generated globally influential
inventions, based on the analysis of patent data every year.

6,651

6,440

6,000

7,621

7,064

Governance

Sumitomo Electric received Top 100 Global Innovators

Number of Patents Year by YearBusiness Outline

We will continue striving to create new technologies andcontribute to the progress of society, in accordance with theBasis for Management

Promoting research and development withdue consideration for the future andcreating innovative technologies and products■ Optical transceiver （ Patent No. 5471787 ）Core
Category

Transmission Devices Laboratory

Products & Services

Concerning the structure of 100 Gbit/s optical transceiver, this invention was highly
recognized for featuring a simple electromagnetic shielding structure with much bettershielding performance than ever.

■ Amorphous-carbon-coated tool andits manufacturing method（ Patent No. 3718664 ）Supply Chain

Advanced Materials Laboratory, Nissin Electric Co., Ltd.,
Sumitomo Electric Hardmetal Corporation, A.L.M.T. Corp. and Nippon ITF, Inc.
Featuring the physical vapor deposition method using an arc discharge, this invention has
enabled the formation of diamond-like carbon (DLC) films on cutting tools. The invention
was highly valued as a trailblazer in the application of DLC films on cutting tools.

Industrial
al Materials

76
145

Electronics
cs

34
169

80

Environment & Energy
rgy

Basic research,
integrated/new ﬁelds,
prototype180
development

80
684

150
30

160
34

710

709

169
Fiscal 2015

110.8

Infocommunications
ommunications

billion yen

Automotive

Fiscal 2016

Forecast for FY2017

115.2

115 billion yen

billion yen

CSR Report 2017

Social Contribution

The annual amount in FY2017
is planned to be 115 billion yen,a similar level to that in
the previous ﬁscal year,
which was a record high.

Research and Development Expenditures

Environmental
Preservation

VISION 2017
Interim Revision
Cumulative total:
480 billion yen

Human Resources

Research andDevelopment Expenditures

36

TOPICSP
POREFLON™
Membrane-Separation
W
Wastewater Treatment System

Aiming to Restore Waterin the WorldThe Sumitomo Electric Group has developed a POREFLON™ membrane-separation wastewater treatment system.
Highly valued for its performance and durability, the system is currently used not only in Japan but also worldwide,
mainly in China and other Asian countries. This article introduces the product, which also contributes to resourcesaving through the reuse of process water as well as to environmental conservation.

We will help to solve various
water-related problems in the world
through our products

We meet customer's requirements with
our original technologies and products
The POREFLON™ membrane-separation wastewater
treatment system using the POREFLON™ module is awastewater treatment system based on thepolytetrafluoroethylene (PTFE) membrane created with thetechnology of the Sumitomo Electric Group. The combinationof membranes enables the system to treat activated sludge
at a higher concentration than the sludge treated by theconventional standard activated sludge process, ensuring thestable quality of the treated water. Chemical cleaning can beapplied because the system is durable and resistant tochemicals. As a result, the burden of maintenance work canalso be reduced. Another advantage of this product is that it
can be designed according to the specific uses intended by
the customer and its equipment. It has been installed inplants, buildings, commercial establishments and various
other places in Japan and overseas.

Wastewater treatment system operated in our Osaka Works

Takayuki Nishiura
Manager, Process Engineering Group, Engineering Department, Water Processing Division

37 CSR Report 2017

POREFLON™ Membrane-Separation Wastewater Treatment System

B

C

AerationblowerControlpanel

Basis for Management

Membrane module(POREFLON™ module)

Filtrationpump

Business Outline

Treatedwater

Membrane tank

Return sludge

A Sludge return pump

B Aeration blower

Group's CSR Activities

A Sludge return pump

Governance

Hollow ﬁber membrane(enlarged view)

C Control panell

My department engages in the design of the system at theafter-sales services including performance checks after the
installation and regular inspections, and work with customers

We delivered this system to the plants of Kaihara Co.,

to regulations and other issues. For

Ltd., a leading manufacturer of high-quality denim, inoverseas customers, in particular,

Kisa, Hiroshima and the Ratchaburi Industrial Estate,

the system is required to have

Thailand. Before the delivery, we carried out a pilot

proper specifications that satisfy

test with actual wastewater for a year and a half

up-to-date local standards because

jointly with Kaihara and Shinyu Co., Ltd. Then, Kaihara

the quality of treated wastewater isintroduced the system into each of the plants andso significant that it can influence
the operation of the plant.

started to operate them in 2015. These systems haveenabled Kaihara to treat

Inspection of the operational
status of the system

industrial wastewater in astable manner and havesubstantial effects on the
reduction of industrial waste,energy costs and equipment

The quality of wastewater is now a social issue around theinstallation space.

world. This product has potential to keep solving various
water-related problems through continuous improvement.

supporting efforts to prevent river and marine pollution basedon its stable treatment performance.

Environmental
Preservation

Currently marketed mainly in Asia and installed in plants that

Human Resources

We will keep addressing
global water issues

require difficult wastewater treatment, the product is

Supply Chain

been becoming more difficult due

Products & Services

to handle the situation concerning wastewater, which has

Delivered POREFLON™
membrane-separation wastewater
treatment systems to Kaihara Co., Ltd.

Core
Category

stage of equipment establishment. We also provide

Wastewater
treatment systeminstalled in
the Kisa Plant

Due to climate change, population growth, economic
development in emerging countries and the other reasons,the world. We will continue to orchestrate the efforts of theSumitomo Electric Group on a global scale to contribute to

Wastewater treatment system installed in the Thailand Plant

society in the aspect of water reuse.

CSR Report 2017

Social Contribution

water shortage is becoming a conspicuous problem all over38

Product Quality & Product Safety
While our Group adopts a wide range of systems and methods

Basic Approachto produce various types of products, they all head in the same

As a corporate group involved in manufacturing, the Sumitomo

direction to further evolve and deepen them.

Electric Group is based on customer-oriented andquality-oriented policies and works for the fundamental targetof contributing to society through the supply of high-quality
products that satisfy customers. In addition to quality of
products, the company's attitude toward quality is evaluated bysociety more strictly than ever. In this context, our Group works
to strengthen its underlying manufacturing competence todeliver high-quality products to customers in a stable manner,and continuously makes steady efforts to systematize daily
duties, implement them soundly and correct any problems.
Sumitomo Electric has historically strived to enhance the
manufacturing competence under its basic policies including
participation of all employees and continuous improvement. To
promote these activities even more strongly, we set up
Monozukuri Technology Improvement Committee as acompany-wide organization in 2015, and promote group-wide
activities with Own Process Quality Assurance activities and
SEI's Just-In-Time approach as the two main pillars.

Development of QR-1 Campaign
We develop the QR-1 Campaign for the improvementof quality and reliability
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
will lead to greater customer satisfaction. Thus, we launched
the reliability improvement campaign throughout the Groupin 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 andAs part of the efforts to systematize the daily operation, while

establish its structure for quality and

QR-1 campaign logo

each division used to establish its quality assurance system

reliability to overtake the competition.

QR：Quality & Reliability

independently, the Sumitomo 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 andstrengthen their quality assurance systems based on thestandards so that customers can use the Group's products with asense of security. A company-wide quality improvement activity

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 wellcalled the QR-1 campaign is also developed, in which we make

Since fiscal 2010, we have promoted Own Process Quality

continuous efforts to enhance the awareness of quality among all

Assurance activities, which are comprehensive efforts toemployees with focus on the three priority activities of Own

prevent defects from being produced or passed down to theProcess Quality Assurance activities, Global Quality Management

following process in each process. Defect-free process

System Audits and Quality Management Education.

conditions to prevent defects from being produced or passed
down to the following process are set up at the design stage

Monozukuri Technology Improvement Activities

and the conditions are maintained through process
management at the mass production stage in the activities. In
case that any defect still occurs, we work to identify the

We promote manufacturing strengthening activities
based on Own Process Quality Assurance activities
and SEI's Just-In-Time approachcause and pursue the defect-free process conditions for
quality improvement. The divisions of the Sumitomo Electric

The Sumitomo Electric Group conducts business operations infive business segments, and the types of its products andproduction systems are wide ranging. Irrespective of type, weshould meet various customer needs, produce top quality
products sought by customers in a safe and environmentallyfriendly production system with the shortest lead time andGroup, which manufacture various types of products, arecommitted to their important theme on Own Process Quality
Assurance activities. The Quality Management Division works
to promote such activities through practitioner training,exchange meetings between different divisions and othersupport measures.

deliver them to customers in a reliable and timely manner. Thisis the ideal manufacturing in SEIPS.＊
To this end, we will pursue Own Process Quality Assurance
activities and SEI's Just-In-Time approach as the two main

Banner for the QR-1 Campaign

pillars to identify problems, thoroughly eliminate overburden,
waste and irregularity, establish a structure of continuous

Process

Process

improvement and become a company with the highest

Produceno defect

Produceno defect

competitiveness in manufacturing.
① Pursuit of Own Process Quality Assurance activities: We will
make continuous efforts to ensure quality in the processes andPassno defect

Good
products

Pass
no defect

Good
products

Shipment

Inspection
Good
products

prevent defects from being produced or passed down to thefollowing process in each process

We also introduced the Degree of Quality Assurance, an② Pursuit of Sumitomo Electric s Just-In-Time approach: We

indicator of the activities to eliminate defects in processes.

will make continuous efforts to pursue just-in-time

Visualizing quality risks with the indicator, we develop the

manufacturing by producing what is needed in the rightactivities in a more quantitative manner. In this system, thequantity and right timing.

prevention levels of defect occurrence and defect flow-out are

Glossary ＊SEIPS

39 CSR Report 2017

SEI Production System (SEIPS) is the concept of the production system focusing
on Own Process Quality Assurance activities and SEI's Just-In-Time approach.

four-point scale from 1st (sufficiently prevented) to 4th (notprevented), and combined to determine the Degree of Quality
Assurance on a six-point scale from S to E.
To prevent complaints from occurring, we should ensure thatthe Degree of Quality Assurance for the type of the defect thatcauses the complaints is B or higher. For example, even when
produced in a normal operation), if that of defects being
passed to the following process is 4th (defects cannot be
prevented from being passed to the following process), theDegree of Quality Assurance is only C. Defects can be passed
to the following process or the customer in this case, andefforts have to be made to improve the Degree of Quality
Assurance allows the divisions and Group companies topromote activities to fill the gap between the target andcurrent performance in an efficient manner. We will continue todevelop these Own Process Quality Assurance activities ongroup-wide and global scales this fiscal year.
Rank of prevention of
defect ﬂow-out
2nd

3rd

1st

A

Rank of prevention of
defect occurrence

1st

Rank

Status of the processes and operations

4th

1st

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

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

S

S

2nd

S

A

B

C

3rd

A

B

C

D

4th

A

C

D

E

It is essential to ensure that all employees understand the
top management's thoughts on quality and to thereby raise
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 to check whether or not their intentions are reflected on
the operations. In addition, all workers vow to continue their
quality-related banners in each site. In November, which isdesignated as Quality Month in the Sumitomo Electric Groupin Japan, flags and posters are additionally displayed toenhance awareness, and each division also selects a subject
for short-term intensive activities to improve the quality
Sumitomo Electric also holds a group-wide Quality
Management Convention twice every year (on June 8 andNovember 15, 2016 during fiscal 2016) to report progress inthe quality indicator, problems in each division, achievementsfrom the efforts and other issues to the top management andwe commend divisions implementing activities that set a
good practice for other divisions, as well as individual
employees who have created excellent posters and slogans
that encourage awareness of quality improvement tostimulate quality-related activities.

Glossary ＊QR-J

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 2017

Social Contribution

share such information across the Group. At the conventions,

Environmental
Preservation

structure.

In order to evaluate the quality control activities of eachbusiness unit in light of the Sumitomo Electric Group Quality
Management Global Standards from the perspective ofcustomers, as well as to improve weaknesses of their quality
assurance systems, we are systematically conducting Global
Quality Management System Audits in the main bases of eachbusiness unit. In these audits, we identify weaknesses of each
unit in terms of management, design, manufacturing and center
function to provide an opportunity to improve its quality
assurance system, and support to overcome the weaknesses.
Since the start in fiscal 2010, the audits have been conducted
at 85 sites in total in Japan. Our domestic facilities are
currently undergoing the third round of the audits, andprogress in improvement is seen as the audits are repeated.
There is also a tendency that the divisions that have proceededwith alignment with the Quality Management Global Standards
receive fewer complaints. The audits are repeated with the aimof promoting continuous improvement of the quality assurance
system. Overseas, the audits were conducted in a total of 31
sites in China and Southeast Asia with collaboration with units
having the center function, along with enhancement ofawareness of quality among local employees, in mind.
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 the global quality management system audits.

Human Resources

commitment to the QR-1 Campaign by displaying

We conducted audits of 85 Japanese bases and31 overseas bases by fiscal 2016

Supply Chain

their own quality awareness. To this end, messages from the

Global Quality Management System Audits

Products & Services

We seek to share and enhance awareness throughinspection of manufacturing sites by the top management
and commendation of excellent divisions and individualsCore
Category

Activities to Enhance Quality AwarenessGroup's CSR Activities

Degree of
Quality
Assurance

The Sumitomo Electric Group provides employees with training
on quality control at the SEI University (see Human Resource
Development in P55 for details) to improve and ensure thequality of products and services at higher levels. In fiscal 2014,
we started a new quality management training course on anomination base for managers in charge of productdevelopment, design, manufacturing and quality assurance, andhave since worked to meet the target of providing the training to
all managers who are required to take it. Eventually, by the endof fiscal 2016, the course was taken by 1,098 persons, which
represented 95% of the managers who are required to take it inJapan.
We work to improve various education programs we haveestablished, such as position-based training for all employees,
nomination-based training in accordance with specialized jobs
and special issues, including equipment maintenance, andoptional training to learn relevant knowledge, along withpractical education including QR-J,＊ MKP＊ and GKP.＊ Overseas,
we use the personnel education activities of the Sumitomo
Monozukuri Development Committee in the U.S., as well as themeetings of Quality Management Committee under the Human
Resource Development Committee in China, as opportunities toorganize exchanges of information on model cases and provide
training sessions on Own Process Quality Assurance activities. In
fiscal 2016, a total of 7,020 persons, including overseas
employees, completed Quality Management Education
programs. The cumulative number of the persons who took the
programs since fiscal 2010 has reached 31,256. We willcontinue to develop the culture of quality first involving all
employees.

Governance

Assurance to B or higher. The system of the Degree of Quality

Quality Management Education is developed throughout
the Group including overseas companies to cultivate
the culture of quality first

Business Outline

the prevention level of defect occurrence is 2nd (no defect isEnhancement of Quality Management Education

Basis for Management

respectively determined by type of defect in each process on a40

Outcomes of the Quality Management Activities
We will continue to make steady efforts toeliminate complaints
Thanks to our ongoing quality management activities, theManagement ofChemical Substances in Products
We are managing chemical substances properly inaccordance with our own guidelines based onJapanese Industrial Standards(JIS) guidelines

number of complaints is on the decrease. In fiscal 2007 webegan to collect data on a global scale including data fromoverseas affiliates, and the number of complaints has been
reduced to about 30% of the figure in fiscal 2007. However,there are still many issues to be improved to eliminate
complaints. We will continue to make efforts to eliminate
complaints with the three main pillars of Own Process Quality
Assurance activities, Global Quality Management System
Audits and Quality Management Education, in addition to
Monozukuri Technology Improvement activities.

management of chemical substances in products. To this end,
we implement the

SEI Guidelines for the Management ofChemical Substances in Products (note), which was established to
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 of
We have also established theSEI Standards for Chemical

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 for

67

60

the Sumitomo Electric Group is committed to proper

Substance Management,

100

80

the Group and our customers, as well as improving compliance,

Chemical Substances in Products - Principles and Guidelines.

Number of Complaints by Year (results in 2007 = 100)
100

In pursuit of reducing environmental impact of the products of

54

Green Quality Purchases (note) based on the standards, while
50

49

conducting product assessment at the design and development
36

40

31

29

32

26

20

stages. Through these initiatives, we strive to prevent hazardous
chemical substances with large
environmental impact such as02007 2008 2009 2010 2011 2012 2013 2014 2015 2016 （Fiscal year）(Note) The data cover Sumitomo Electric and its manufacturing aﬃliates in Japanand overseas (including the Sumitomo Wiring Systems Group)

mercury and cadmium from being
contained in products.
The Sumitomo Electric Group also
has the Chemical Management Task

C S R VO I C ECommittee in place to enhance

We have reduced complaints by 80% throughvisualization using a management board andquicker implementation of countermeasurescoordination 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.

The Industrial Wire & Cable

Compliance with Regional Regulations on
Chemical Substances across the GlobeDivision manufactures andmarkets electric wires
and cables that supportsocial infrastructure withtwo manufacturing

Yukifusa Morita
subsidiaries in Japan and General Manager

Katsumi Imooka
Director

one outside of Japan. We Quality Management Department Sumitomo Electric
once received many

Industrial Wire & Cable Division

We are promptly responding to progressive tightening ofregional regulations on chemical substances across the globe

Industrial Wire & Cable Inc.

quality-related complaints, the number of which were 26 in fiscal
2013. Then in January 2014, we established the Quality

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 no

Management Department within the division to enhance the quality

prohibited substances. As an example, we have alreadymanagement structure. With cooperation from the Quality

discontinued the use of the four types of phthalates added toManagement Division of Sumitomo Electric, each manufacturing

the list of substances banned by the RoHS Directive in 2015,

subsidiary developed a mechanism for quality audits, the promotion

which will be regulated from 2019, in most of the productsof Own Process Quality Assurance activities and other initiatives inaccordance with the Sumitomo Electric Group Quality Management

subject to the directive. We are now making efforts to avoid

Global Standards. In particular, we selected the Wakayama Plant of

the use of these phthalates in the purchased parts used for the

Sumitomo Electric Industrial Wire & Cable Inc., which was receiving

products subject to the RoHS Directive.

many complaints, as the top priority site and performed activities to

At the same time, to comply with the REACH＊ regulation, we

maintain quality through clarification of defect-free process

are working for final registration of chemical substances one byconditions with the development of a quality control plan, as wellas through "3 points control of quality (Standards compliance

one as required and completed the registration of gallium

control, Change point control, Abnormality control)". We also

arsenide (GaAs) in 2012 and tungsten carbide (WC) in 2017.

visualized abnormalities and changes on a management board and

We are also making efforts to ensure appropriate responses toanalyzed their causes at a quality liaison meeting held every

the requirements of the REACH regulation including reportingmorning with production, technical and quality assurance managers
to promptly determine the actions to be taken based on theanalysis, which speeded up the improvement. These activities havebeen introduced into other sections of the division, and theof the SVHC＊ contained in products.
To quickly respond to progressive tightening of regional
regulations on chemical substances across the globe, our

Wakayama Plant achieved the target of eliminating complaints toGroup is working to collect information on regulations inzero throughout fiscal 2016 while the number of complaints in theEurope, China, Southeast Asia and other countries and sharedivision as a whole dropped to 5.

the information within the Group.

Glossary ＊RoHS Directive

41 CSR Report 2017

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 the useof lead and three other hazardous heavy metals in automobiles toreduce the impact of end-of-life vehicles on the environment.

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《 Voluntary Inspection on Product Safety 》

Social Contribution

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.

Environmental
Preservation

Glossary ＊REACH regulations

Human Resources

Our Group's business activities consist mainly ofbusiness-to-business transactions, and we therefore believethat the proper identification of the opinions and demands
from customers (companies) through daily sales activities andfurther quality improvement of products and services willlead to greater customer satisfaction. Based on thisrecognition, we focus on the training of sales staff to enhancetheir abilities to understand the problems of customers andpropose solutions to them. We also cooperate with external
consultants to give training to management staff in Japan tolearn methodologies for making proposals and methods tomanage and instruct their subordinates. In addition, action
guidelines to stimulate the organization have been specified
for management staff with customer satisfaction (CS)
improvement as a crucial item. We will give feedback basedon surveys of superiors and subordinates at an annual grouptraining session to encourage management staff to take theinitiative in making changes and to ensure CS improvement.
To further increase customer satisfaction and strengthen
the Sales Group as a whole in response to progress inglobalization, we will make use of the opinions ofstakeholders collected through our visits to customers, trade
fairs, websites and other means for our future initiatives.

The Sumitomo Electric Group believes that product quality andoffice work quality are inseparable in business execution andequally focuses on office work quality improvement activities,
aiming to eliminate critical office work mistakes and raise theoffice work efficiency. Specific activities are: (1) creation andperiodical review of relevant documents such as company
regulations, business rules and office work instructions, (2)thorough implementation of measures to prevent recurrence of
mistakes to reduce office work mistakes, and the use of
Hiyari-Hatto memos, or near-miss reports, and (3) improvementof office work efficiency by Kaizen at the office.
For the relevant documents such as business rules and office
work instructions, we set a slogan of "qualitative improvement".
While the number and percentage of completed documents forrequired for business rules and office work instructions areconventional indicators of the efforts, we have added activities
for "enrichment of the content" and "maintenance andmanagement to keep the documents up-to-date to the priority
action items.
In our initiative to reduce office work mistakes, we set theslogans of ensuring the reporting of office work mistakes andcompletion of measures to prevent reoccurrence . We willdevelop the initiative to add prevention of office work mistakes
to the targets and work to reduce the mistakes through suchactions as the sharing of information on good examples andprovision of related training.
We are also committed to launching the activities overseas andhave established a committee that supervises Group companies
in China. There are 11 Group companies that have started theirown activities in China. To encourage local employees todevelop their own activities, we have localized part of the action
policies set in Japan and also appoint local employees as thecommittee members in each company. While promoting thelaunch of the activities in other companies in China, we will
provide the companies that have already started the activities
with joint support from the committee in Japan and China.

Supply Chain

We are committed to activities to understand the problems
of customers and make proposals to help solve them

To serve as a model for overseas affiliates,
we are working to improve office work quality at
our divisions and Group companies in Japan

Products & Services

Customer Satisfaction Improvement
Activities by the Sales Group

Activities for Improvement of Office Work Quality

Core
Category

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.

Boundaries of data collection: 3 Works (Osaka, Itami and Yokohama) of Sumitomo
Electric, 10 aﬃliates and AS Brake Systems, Inc.

Group's CSR Activities

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.

In fiscal 2016, we had 28 transport accidents such as damage
to products caused during truck transport, movement on site
by forklift and other occasions in Japan (excluding Sumitomo
Wiring Systems, Ltd.). While the number decreased by four
from fiscal 2015, we had as many as five serious accidents
including falls of heavy products.
Many of our products are transported in uniquely shaped
containers such as drums and dedicated containers, which
requires staff with expertise and experience to fix thecontainers to pallets and transport them. In the meantime,shortage of truck drivers is a severe issue and it is also getting
more difficult to procure trucks for long-distance transportation
in some regions. Accordingly, we entrust transportation to acarrier we had no business before more often.
The forklift basic operation competition for truck drivers wehave organized will be continuously held. We will strive toensure the safety of transportation by sticking to the basics ofthe operations in cooperation with the carriers.

Governance《 Training on Product Safety 》

We recheck basic operations to ensure
the safety of transportation

Business Outline

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.

Improvement of Logistics Quality

Basis for Management

Product Safety (Product Liability)＊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 201742

■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 expansion of procurementof materials for new businesses. To respond to such
expansion, we set promotion of CSR procurement as apriority theme for VISION 2017 and seek to strengthen
the trustful relationships with our suppliers according
to the following procedure.

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

I will work to promote the widespread practice ofproper procurement in the Group
Belonging to Procurement Division, I am in charge of compliance in the
procurement activities of the Sumitomo Electric Group as a whole and assist
Group companies in establishing their own compliance systems. Speciﬁcally, I
conduct on-site inspections and organize relevant training programs.
I visit the procurement divisions of the Company and Group companies andinspect them to check whether or not their procurement activities comply
with the rules of Sumitomo Electric, and with the Subcontract Proceeds Act＊and the Customs Law in the case of divisions in Japan.
The training programs include an OFF-JT＊ program and a training program todevelop key personnel on the Subcontract Proceeds Act for procurementstaﬀ including those of Group companies, as well as compliance training on
procurement for all employees.
In recent years, I have been committed to theestablishment of a more robust and eﬃcientcompliance system through inspections
using procurement data with thecooperation of key personnel on the
Subcontract Proceeds Act cultivatedin the training program.
The demand for compliance withlaws related to procurement on the
Sumitomo Electric Group is
becoming even wider and deeper,
and we plan to expand the overseas
regions to cover in our activities.
I will continue to earnestly endeavor
to enhance compliance with laws
related to procurement.

Kazufumi Yamanaka

Assistant General Manager, Management Group,
Administrative Department, Procurement Division

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 aGroup Procurement System
We are working to ensure thorough compliance with
our policies and enhance awareness amongprocurement staff on a global scaleservice that supports the foundation of its business

Based on the Basic Procurement Policies, the procurement

activities, and in May 2006, established Basic Procurement

measures and activities of the Sumitomo Electric Group are

Policies in line with the Sumitomo Spirit and the Sumitomodeveloped under the initiative of the Group Procurement

Electric Group Corporate Principles. We have distributed theCollaboration Oﬃce, an organization established in the

Basic Procurement Policies to our main suppliers, along with

Procurement Division and composed of the staﬀ in charge of

our Group companies, and have sought their understanding

procurement in 21 divisions and Group companies.

and cooperation.

Speciﬁcally, the oﬃce members work together to promotevalue analysis (VA＊) and provide education to enhancecompliance related to procurement and improve

Basic Procurement Policies (extract)※
1．Promoting procurement activities that contributeto creative and global corporate activities
2．Promoting fair and impartial procurement activities
3．Promoting compliance-based procurement activities

procurement skills. An e-mail magazine is also distributed tomore than 400 procurement staﬀ members to sharenecessary information throughout the Group.
Overseas, we promote coordinated procurement on aregional basis under the initiative of the International
Procurement Oﬃces (IPOs) of the Procurement Division

4．Promoting procurement activities based on
mutual trust and cooperation with suppliers

located in China, ASEAN, the United States and Europe. As

5．Promoting procurement activities friendly to
the global environment

committees composed of IPOs and procurement staﬀ ofpart of the eﬀorts, we organize meetings of liaison
Group companies to develop group-wide initiatives andprovide related training to procurement staﬀ.

Web

43 CSR Report 2017

※ For the entire policies, please see the following page.

http://global-sei.com/csr/sociality/procurement.html

Glossary ＊Subcontract Proceeds Act

The Act against Delay in Payment of Subcontract
Proceeds, etc. to Subcontractors
Japanese law

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

We check the progress of suppliers in their activities
for the CSR Procurement Guidelines, and work forfurther dissemination and establishment among them
For promotion of CSR procurement, in addition to activities to

Procurement Guidelines based on the Sumitomo Electric

ensure that suppliers understand the guidelines, we need toGroup Corporate Principles and Charter of Corporatecheck the progress in the dissemination of the guidelines. To

Behavior in August 2010. The guidelines were revised tothis end, we conduct a questionnaire survey of suppliers.

include provisions concerning response to the issue ofAs shown in the table below, we have gradually expanded

conﬂict minerals in ﬁscal 2014. To enhance promotion of thethe scope of the questionnaire survey since its start in ﬁscal

guidelines, we also ask suppliers to take proper action by

2013 to include suppliers in Japan and overseas of Sumitomo

specifying relevant requirements in the basic transaction

Electric and Group companies. A total of approximately

agreement.

1,930 companies have cooperated with the survey by theBusiness Outline

activities, we established the Sumitomo Electric Group CSR

Basis for Management

CSR Procurement Activities in
Cooperation with Suppliers

Commitment to CSR Procurement

previous year.
suppliers to CSR procurement. We also learned that oureﬀorts to ask them to cooperate were still insuﬃcient, andidentiﬁed the points to be improved in the survey method.
The results of the questionnaire survey are used eﬀectively toreinforce our relations of trust with suppliers, and we aremaking a series of improvements of the survey method.
Request to suppliers for promotion of CSR procurement andthe questionnaire survey method

1. Provision of Useful and Safe Products and Services

Establishment of
the CSR Procurement Guidelines● Request to suppliers for promotion of
CSR procurement●

2. Improvement of Technological Capabilities
2010 to 2012

3. Promotion of Sound Business Management
4. Contribution to Preservation of
the Global Environment

6. Social Contribution and Elimination of Antisocial Forces●

Request to a total of approx. 1,930 suppliersin Japan and overseas (about 330 suppliersin ﬁscal 2016) for cooperation with ourquestionnaire survey●

Plan to continue to promote CSR
procurement while extending
the eﬀorts to more suppliers

2013 to 2016

(Including Response to the Issue of Conﬂict Minerals)

8. Disclosure of Information and Promotion ofCommunication with Society

from 2017

Products & Services

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

9. Maintenance of Conﬁdentiality and Information Security

Supply Chain

C S R VO I C E

Mr. Takahiko Kojima, President
Mr. Akira Jindo, Executive Officer and Director of Osaka Sales Office, Kakuichi Kasei Co., Ltd.

＊Value Analysis (VA)
VA is conducted to replace
Material X with cheaper
Material Y that still provides thequality required for the product.

Web

Social Contribution

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.

Environmental
Preservation

Kakuichi Kasei Co., Ltd. positions itself as a creator of ideas on materials and aims to bea unique company that makes the customers happy while centering on materials andnew technologies. Having founded in 1921, we currently have approximately 120
domestic employees in total in the headquarters in Osaka and plants in Shiga andYamaguchi. We also have overseas plants in Shanghai and Indonesia.
The Sumitomo Electric Group has been our customer since 1948, and we deliver connection terminals for power cables and rubber
molded products. The transactions have been so fair that we have maintained a long-term relationship.
We have the management philosophy of "Let's create happiness from material", and aim to establish a workplace where employees
can enjoy their work and demonstrate their value. We are committed to the development of a corporate culture that ensures thatthe company or its employees will never head to a wrong direction. To this end, for example, the president talks with employees
about business philosophy for an hour or so every month. Having such a corporate culture, we were not surprised at all when we
received the CSR procurement questionnaire survey from the Sumitomo Electric Group in 2016 and we were able to respond to therequest, considering it to be reasonable.
We will continue to make social contributions based on our materials and processing technologies in various fields including
automotive, home appliance and electricity.

Human Resources

Under the management philosophy of "Let's create happinessfrom material", we aim to establish a workplace where
employees can enjoy their work and demonstrate their value

Glossary ＊OJT and OFF-JT

Core
Category

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

Group'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.

Governance

The survey enabled us to check the commitment of our

Sumitomo Electric GroupCSR Procurement Guidelines (extract)※※ Please see the following page for the entire guidelines.

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

CSR Report 201744

Contribution to Preservation of
the Global Environment
We are committed to green procurement as
an essential quality factor
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 the Procurement Division also
participates revised the guidelines to issue SEI Guidelines forGreen Quality Purchases as a new version. We consider theguidelines as part of essential quality standards and use themto maintain green procurement activities.
We also introduced the ECO Factoring System incollaboration with Sumitomo Mitsui Banking Corporation inﬁscal 2009, which is now used by 67 suppliers. In this system,a favorable interest rate is applied to suppliers that promotea certain level of environmental conservation activities inorder to encourage suppliers to perform such activities.

Response to the Issue of Conflict Minerals
We recognize this issue as a major social challenge andaim to eliminate conflict minerals from our business
As an initiative for promoting compliance-based procurement
activities, the Sumitomo Electric Group recognizes that thematter of conﬂict minerals＊ from Congo and its neighboring
countries is a serious social issue in the supply chain. To fulﬁll
our social responsibility in procurement activities, we aim to
procure or use no conﬂict minerals involving any illegal or
dishonest acts. To this end, we also stipulate the approaches
to the initiatives in the CSR Procurement Guidelines andinvestigate the supply chain on conﬂict minerals. In the eventthat the use of minerals that may cause a social problem orserve as fund for armed groups is found, we will takemeasures to avoid their use.

know the impact of disaster in a short time, and collecting
information on production and logistics bases so that we canﬁnd any sites where we can manufacture or store the productsin the aﬀected area at the time of disaster.
In ﬁscal 2016, we had fears of a supply shortfall due to the
Kumamoto Earthquake, a trouble in the production line at aplant of a chemical manufacturer in Japan and suspension ofoperation caused by ﬁre and other reasons. In these situations,nevertheless, we were able to procure materials without impact
on our production or that of our customers by, for example,
using the alternative products that had been examined in theabove-mentioned activities and receiving supply preferentiallywith the cooperation of our suppliers. These incidents reminded
us of the signiﬁcance of such activities.
We will maintain these activities to strengthen our procurement
system that can supply products and services in a stablemanner.

Organization of Partners' Meetings
Approx. 90 suppliers participated in Partners' Meetings
The Sumitomo Electric Group organizes Partners Meetings
every year to enhance its relationships with suppliers. We use
this opportunity to explain the outline of our businessactivities and the Basic Procurement Policies and commend
the suppliers that have contributed to the business activitiesof our Group through good proposals and support activities
in order to establish amicable and cooperative relationships
with suppliers. At Partners Meeting, we also present the CSR
Procurement Guidelines, as well as the Basic Procurement
Policies, to ask for their cooperation and promote theguidelines actively.
To help overseas suppliers establish CSR procurement, we
present the guidelines at Partners' Meetings and reverse
exhibition/negotiation meetings.＊
In addition to the group-wide Partners Meetings, some ofour divisions and partner companies also hold such meetings
individually.

As a speciﬁc initiative, we ask suppliers to cooperate with ourinvestigation mentioned above, which is conducted every
year. In case that there is any concern over the use ofminerals, the relevant suppliers are requested to takemeasures to avoid the use as we do in the Group.

Response with Business Continuity Plan (BCP)
Our efforts to strengthen the system forstable procurement are producing steady results
The Sumitomo Electric Group is committed to the development
and implementation of a business continuity plan (BCP) for
procurement divisions, which prepares for large-scale disasters
and other emergency situations, to ensure stable supply of
products and services and thereby avoid impact on the
production activities of our customers. The BCP assumes asituation that the suppliers of our parts and materials have
suﬀered damage from disaster and suspended production
activities. To minimize the impact of such suspension on our
production and enable quick recovery, we have examinedalternative suppliers and products, in addition to replacementwith commodity items. We are also developing acommunication network with suppliers to ensure that we canPartners' Meetings

Glossary ＊Issue of conﬂict minerals

45 CSR Report 2017

Armed groups that are involved in serious violations of human rights obtain funding
from trading of tantalum, tungsten, tin, gold and their derivatives produced in the
Democratic Republic of the Congo and its neighboring countries.

＊Reverse exhibition/negotiation meeting
A trade fair to exhibit items used in the Sumitomo ElectricGroup and ask suppliers to propose better alternatives interms of quality, cost and deliveryWe will promote compliance inprocurement through thorough inspection and training

●

3,000

1,500

Compliance with the Customs Law in regard to
appropriate custom reports and payments

500

Organized in 27 regions (video conference: 10 regions;delivery lecture: 17 regions)● Attended by 3,016 persons in total● Themes: Subcontract Act, Customs Law and internal control●

On-siteinspection

Subcontract
Act andinternal control

In Japan: 7 division of Sumitomo Electric,
5 aﬃliates
Overseas: 9 aﬃliates

Customs
Law

In Japan: 28 divisions of Sumitomo Electric and its
aﬃliates importing directly from overseas

12

30
20
10

0

0

2012

2013

2014

2015

2016

Participants(Fiscal year)

Locations

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
and expertise, the Procurement Division has developed andprovided an OFF-JT program for working staﬀ, which is
combined with existing OJT to create a synergistic eﬀect thatwill improve procurement skills.
The OFF-JT program in ﬁscal 2016 was composed of 7
courses including procurement-related laws and regulations,and CSR Procurement, each of which was provided by anexpert in the Procurement Division. The experts used
textbooks they prepared, and gave lectures throughteleconferences with sites in Japan and overseas. In total,
291 persons attended the lectures.
Aside from these initiatives, we organized a training program
to develop key personnel on the Subcontract Act, andprovided a certiﬁcate for 19 persons who completed theprogram. This program develops core personnel for theestablishment of an autonomous system to comply with theact in each division and company because the Subcontractdevelopment sections.
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 procurementwith training seminars
concerning procurement.
In the future, we will organize
training seminars regularly to

Human Resourcesof our aﬃliates in the respective regions, who are provided

Supply Chain

Act has to be made known widely not only in the sections incharge of procurement but also in manufacturing and

Products & Services

further disseminate the Basic
Procurement Policies andconsider providing suchseminars at more sites.

Training program to develop key personnel
on the Subcontract Act

Results of Education
Date

Key personnel
development
program

1st half of FY2016

7

26

159※

23
23
16

2nd half of FY2016

7

26

132※

2nd half of FY2016

1

5

19

Social Contribution

OFF-JT
Education
programNo. ofNo. ofNo. ofNo. ofparticipants
courses lecturescompanies(total)Environmental
Preservation

Procurement Compliance Training Seminars

18

Core
Category

We selected the Subcontract Act, the Customs Law andinternal control as the themes for the training seminars, andorganized three levels of sessions to enable the participants toattend suitable ones according to their knowledge level andduties. In addition to delivery lectures, we started to provide
training via a video conference system in ﬁscal 2012, whichallowed more locations to hold the seminars and increased
the participants. We will continue to work to expand thelocations and further enhance the awareness of compliancewith laws related to procurement within our Group.
In on-site inspection, the Procurement Division visits thetarget sites to check compliance with laws related to
procurement. The inspection of Sumitomo Electric anddomestic aﬃliates in Japan aimed to conﬁrm compliance with
the Subcontract Act, the Customs Law and internal control
rules. For inspection on the Subcontract Act and internal
control rules, we selected the target sites on the assumptionof regular visits to them in the future. With respect to theCustoms Law, all of the sections importing directly fromoverseas were inspected to check the correctness of theamounts in custom reports, etc. Inspection of overseas
aﬃliates focused on the check of compliance with rules oninternal control.
In ﬁscal 2016, we received on-site investigation by the Smalland Medium Enterprise Agency of Japan concerningcompliance with the Subcontract Act and other issues in
September. We also underwent a post-entry audit regarding
the correctness of the amounts
in custom reports and storageof conﬁrmation documents bycustoms inspectors in February
2017. The investigation or audit
was completed with no(Points)

27

22

20

Group's CSR Activities

Results of training and on-site inspection

3,016

1,329

1,000

Compliance with internal control rules in regard to
procurement in the Sumitomo Electric GroupAs to the priority matters, we organized training seminars in
Sumitomo Electric and its aﬃliates in Japan again in ﬁscal
2016. We also conducted on-site inspections in our domestic
and overseas aﬃliates to conﬁrm compliance with the rules.

2,730

2,006

2,000

Compliance with the Subcontract Act in regard to
appropriate dealings with subcontractors

Training
seminars

2,551

Governance●(Persons)

2,500

Priority matters●

Number of Participants in Procurement ComplianceTraining Seminars and Number of the Locations by YearBusiness Outline

The Procurement Division is committed to the following threepriority matters in its eﬀorts to ensure compliance with laws
related to procurement:

indication of particularly major issues.
The Procurement Division will continue to expand andimprove the education and inspection activities to promotecompliance with laws related to procurement.

Basis for Management

Initiatives to Ensure Compliance withLaws Related to Procurement※Number of those who passed the ﬁnal exam

CSR Report 201746

■CSR Core Category

Human Resources■

We are committed to facilitating the growth of
our global business through the planning andimplementation of global HR strategies

CSR Priority Theme

Promotion of diversity

I started working at an overseas subsidiary of Sumitomo Electric in the US
from 2004 and joined Sumitomo Electric in Japan in 2015. Now I am amember of the Sales Planning & Marketing Division in Tokyo.
One of our missions is to facilitate the growth of global businesses ofRemoving various barriers, we will
accelerate the globalization of ourhuman resources and organization

Sales Units by strengthening our global HR strategy.
Our main focus is to align our HR strategies with our overall businessstrategies as we tackle pieces of the HR puzzle in areas such as
talent-attraction, succession planning, and HR development.

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.

Business strategies are executed by people, so westrive to create a blueprint that provides an
inclusive environment for all employees
globally to contribute to theacceleration of our growth and value
creation. We are currently
collaborating with HR and the sales
units to revamp our position in the
global talent war. The most◉ Introduce a new HR system to show career
opportunities within the Sumitomo Electric Groupbeyond individual companies

fulﬁlling part of our journey is◉ Develop an institutional framework to identify
executives in group companies as Global
Executives

between localization andworking with stakeholders todetermine the appropriate balance
globalization.

◉ Develop common guidelines for bothinternational and inter-ﬁrm mobility

Chiang Chiali

Manager of Sales Promotion Group, Sales Planning & Marketing Division,
Social Infrastructure Sales & Marketing Unit

Diversity
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 240,000 employees areworking actively in about 40 countries around the world. We

recruitment and promotion. We have declared the policy toinform people in and outside of the Group about it.

Global Human Resource Management(HRM) Policy●

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 and globally
pursue "the right person in the right position" regardlessof race, ethnicity, national origin, religion, age, gender,
gender identity, sexual orientation, or disability.

●

We value and promote diversity in the workplacein order to enhance the creativity of the organizationand to 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.

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 ofan environment that helps employees realize growth andself-actualization through work, provision of various career
opportunities regardless of race, ethnicity, national origin,religion, age, gender, gender identity, sexual orientation, or
disability, promotion of diversity and development of global
leaders, in order to accelerate our global human resource

47 CSR Report 2017

《 Encouragement of International Employees to Work in Japan 》

We will promote the involvement of SEI Group Global
Executive ( SEG Global Executive ) and otherinternational employees in the business management

the next generation of SEG Global Executives, we will

System, which is a human resource development systemapplied commonly across the Group and allows talented andqualiﬁed persons to seek career development beyond theopportunities to demonstrate their abilities and cultivating
encourage international employees to work in Japan. We will
set up a program to have them work in Japan either as
expatriation or short-term assignment. We will also makeefforts to improve the supporting program for international
employees working in Japan.
《 Development of a Global HR Database with an aim
to establish processes for development and promotion 》

management of Group companies in Japan and overseas or

To understand human resources of the Group on a global

perform even higher duties. We give board members andscale in a seamless manner, as well as to provide various

equivalents from overseas subsidiaries, except for those ofcareer opportunities to competent and enthusiastic staff andlisted companies, the global leader (GL) grade, and recognize

cultivate and promote them, we are establishing a global HRthem as SEG Global Executives. At present 35 persons, mostdatabase. Business Units also hold meetings with executivesof whom are executives of overseas Group companies, areto identify excellent staff and create development andrecognized as SEG Global Executives. They are provided withpromotion plans.

Governanceborders of individual companies to engage in theBusiness Outline

The Sumitomo Electric Group has adopted the Global Grade

With the aims of providing SEG Global Executives with more

Basis for Management

Global Grade System andGroup Global Executive Personnel Systema wide range of career opportunities to help them play more
active roles as global leaders.

Group Global Magazine ALL SEI

We introduced the area committee system in 2015 to allow
SEG Global Executives to participate in business management
beyond the borders of individual companies. The system aims
to 1) enhance the presence of each business/base inconsideration of the regional characteristics, 2) make use of
the knowledge and experience of SEG Global Executives and3) establish a network of SEG Global Executives to promotethese activities. We have set up four committees of Americas,
wide variety of subjects, such as human resource
development and strengthening of manufacturing abilities in
Executives.
We also use the Overseas Top Executives Conference toincorporate the proposals presented by the area committees
into the management of the Sumitomo Electric Group. In thisoverseas affiliates gather every year to discuss global
management issues. While it has been held in the tworegions of Americas and China, we started to organize it inEurope and Southeast Asia as well in 2017. Through theconference, we will further promote diversity management in

ALL SEI conveys the Sumitomo Spirit, the Sumitomo ElectricGroup Corporate Principles, messages from executives andinformation on our business performance, as well as
information on our business and social contribution activities
in various regions, in order to share information and cultivate
a sense of unity among Group employees.
While ALL SEI has contained an interview with executives
from group companies, who work
actively in various parts of theworld, since the Autumn 2011
issue, we also started to provide
articles on interviews between the
President of Sumitomo Electric and
SEG Global Executives in 2016.
Thus, we are also committed todisseminating the significance ofdiversity management in the Group.

ALL SEI

Number of Group Employees in the World by Year

Numbers as of March 31 of each ﬁscal year

Fiscalyear

200,000

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015
Male

Female

2016
Total

Male

FemaleTotal

Americas 18,201 23,962 15,744 13,852 15,164 19,712 24,273 29,470 34,828 18,061 15,439 33,500 22,481 15,478 37,959

100,000

50,00031,406 32,667 33,834 41,230 47,735 47,644 54,245 56,477 21,413 34,860 56,273 22,135 34,662 56,797
27,167 34,792 34,310 37,538 43,000 49,868 56,408 58,278 20,032 41,816 61,848 21,440 44,404 65,844

China

29,367 34,939 33,808 37,843 51,887 46,788 47,390 47,646 52,323 20,760 29,947 50,707 20,196 28,298 48,494

Japan

32,885 36,251 35,536 37,364 36,954 37,499 37,148 37,715 38,892 31,371

7,166 38,537 31,915

7,321 39,236

02006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
(Fiscal year)

Total 133,853 153,725 152,547 157,203 182,773 194,734 206,323 225,484 240,798 111,637 129,228 240,865 118,167 130,163 248,330※ Sumitomo Electric and its consolidated subsidiaries

CSR Report 2017

Social Contribution

Europe/Africa 27,634
Southeast
25,766
Asia

150,000

Environmental
Preservation

No. of employees (persons)
250,000

Human Resources

the Sumitomo Electric Group.

employees both in Japan and overseas.

Supply Chain

conference, top executives of Sumitomo Electric and its

across the Group, as a communication tool for Group

Products & Services

the respective regions, under the leadership of SEG Global

We publish ALL SEI, a periodical commonly distributedCore
Category

EMEA, South East Asia, and China, which are working on a

We are committed to the promotion of communication between
employees of Group companies in Japan and overseas

Group's CSR Activities《 Area Committee 》

48

《 Response to the Act on Promotion of Women's
Participation and Advancement in the Workplace 》

Diversity in Recruitment

In accordance with ｔhe Act on Promotion of Women's

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

Participation and Advancement in the Workplace, we set
targets on recruitment of women and appointment of women

In ﬁscal 2016, Sumitomo Electric employed 177 new graduates
for main career track in Japan, 23 of whom were female and 8
were overseas students, etc. We also hired 81 mid-career
employees. To support the development of our various businessactivities including those in new ﬁelds and global markets, aswell as to fulfill our social responsibility, we continue to actively
recruit women, non-Japanese, students from foreign countries,
mid-career employees and other diverse personnel.
To ensure that diverse talents can demonstrate theircapabilities regardless of nationality, race, gender, age or otherbackground in the Group, we will continuously work topromote training and development programs, deployment andpromotion beyond the borders of individual companies andoffer various career opportunities.

and formulated an action plan in March 2016.

（１）Plan period (1st phase)
2 years from April 1, 2016 to March 31, 2018（2）Recruitment【Targets】● We aim to increase the women's share in the newgraduates for main career track (to 40% or more forclerical staff and 15% or more for technical staff).
【Initiatives】● PR activities mainly targeting female students● Improvement of capabilities to recruit women【Current situation】
Employees who entered the Company as of April 1, 2016:
16.9% for clerical staff and 11.3% for technical staff
Employees who entered the Company as of April 1, 2017:43.3% for clerical staff and 15.3% for technical staff

Number of Male/Female Employees Hired by
Sumitomo Electric (All Functions)（3）Appointment(Persons)

400【Targets】● We aim to increase the women's share in section
managers or higher positions to 1.5% or more.
● We aim to increase women's share in assistant managers
to 10% or more.

381

350
300

258

250

51

200

268
36

296

281

59

320

43

51

238

245

63

【Initiatives】● Implementation of measures to support female employees
on main career track in their career development● Development and appointment of female employees on
general track● Monitoring of promotion of women in each division● Realization of flexible working styles● Establishment of a network of employees that responds
to diversity

322

150
100

232

207

257

50
0

2011

Female

2012

2013

2014

2015

2016

(Fiscal year)

Male

Number of Employees Working for Sumitomo Electric
Who Were International Students
As of March 31 of each ﬁscal year

【Current situation】See the graphs below(Persons)

62

65
60
55

48

50
45

Number and share of women in
section managers or higher positions

51

41

40

33 33

35

29

30

25

25

18

20
15

52

11

10
5

(Persons)

36
China

Vietnam
Korea
Taiwan
Malaysia
Indonesia
India

42
4
2
2
2
2
2

USA
SwedenThailandPhilippines
Sri Lanka
Nepal

1
1
1
1
1
1

20

Sumitomo Electric regards Women's empowerment as one ofthe driving forces to promote diversity, and strives for it. We
consider that the development of an environment where
women can fully demonstrate their skills and keep playing
important roles will also lead to the cultivation of culture thathelps each employee work more actively. This is therefore asignificant initiative for the future growth and development of
our Company.

49 CSR Report 2017

1.45

38

40

7

8
2013

28

22

17

2012

0

10
2014

30

10
2015

（％）
1.5
1.4
1.3
1.2
1.1
1.0

10
2016

No. of section managers
No. of general managers or higher positions
Share in section managers or higher positions(Note) Above graphs cover personnel data for Sumitomo Electric employees,
including those on loan to Sumitomo Electric aﬃliates and other organizations.

We strive for Women's empowerment withrecognition that it is one of the driving forces topromote diversity

32

25
22

10

(Fiscal year)

Women's Empowerment

29

30

0

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

1.02

40

1.40
1.28

1.20

50

as of January 16 ofeach ﬁscal year

Number and Share of Women in
Assistant Managers

as of January 16 ofeach ﬁscal year

9.1
(Persons)

100
80
60

7.1

7.6

7.8

71

73

88

5.8
51

62

（％）
10.0
9.0
8.0
7.0
6.0
5.0

40
20
0

2012

2013

Number of assistant managers

2014

2015

2016

(Fiscal year)

Share in assistant managers(Note) Above graphs cover personnel data for Sumitomo Electric employees,
including those on loan to Sumitomo Electric aﬃliates and other organizations.

As of March 31 of 2016

Sumitomo Electric employees (Note 1)
Female1,392●

persons

12.5％

Male

9,717
persons

87.5％

FemaleFemale126

40

persons

Total
number of
section managers
or higherpositions

Total
number ofmanagers(Note 2)

1.46％

(Note 3)

2,735

Male

3,572

C S R VO I C E
Male

2,695

persons

persons

96.6％

98.54％

Governance

3,698

persons

Selected as an FY2016 Nadeshiko Brand

We were selected as an FY2016 Nadeshiko Brand in March2017. The Nadeshiko Brand designation is granted to theenterprises selected jointly by the Ministry of Economy, Tradeand Industry of Japan and the Tokyo Stock Exchange asorganizations that actively promote the development of anenvironment where women can keep working
as well as the use of female personnel.

Business Outline

Total
number of
employees

11,1093.4％

and Welfare of Japan to companies that are
outstanding in terms of encouraging women toplay more active roles based on the Act ofPromotion of Women's Participation andAdvancement in the Workplace.

Basis for Management

Ratio of Male/Female Employees andRatio of Male/Female Managers

Career development
during child rearing
Nao Nagata
IT Application Promotion Group, Information Systems Division

Group employees in the world (Note 4)
Female130,163
52.4％

Male

Total
number offull-time
employees

248,330

118,167

Femalepersons

47.6％

1,356
persons

Total
number of
section managers
or higherpositions

10.5％(Note 3)

12,925Male

11,56989.5％《 Childbirth and Rearing Support Program 》●

Certification with "L-boshi"

We were certified as the top L-boshi company in August 2016.
L-boshi is certification granted by the Ministry of Health, Labour

CSR Report 2017

Social Contribution《 Evaluation by External Organizations 》

Sumitomo Electric has been traditionally working to promote
employment of persons with physical disabilities. To further
promote employment of persons with physical or mental
disabilities and increase their employment rate, we established a
special subsidiary, Sumiden Friend, Ltd., on the premises of
Sumitomo Electric's Itami Works, specifically for employment of
persons with disabilities in July 2008 (certified in February 2009).
Beginning with loan and maintenance of foliage plants andproduction of buffer materials for packaging, Sumiden Friend has
expanded its operations gradually to also engage in conversionof drawings and other paper documents into electronic files andshredding and recycling of waste paper. We establishedYokohama Branch in 2013, Tokyo Branch in 2014 and Osaka
Branch in April 2015. As of March 2017, 65 employees areworking at the company, including 38 persons with disabilities.

Environmental
Preservation

In comparison with men, women are more susceptible to life
events and have less role models. Accordingly, women tend tohave difficulty in imagining their career path at present, which isalso due to the impact of monoculture in organizations. In thiscontext, we organized a training program for superiors of female
main career track employees in fiscal 2016. A superior was
paired with his/her female subordinate to discuss the career ofthe subordinate for an hour to give the superior an opportunity
to consider support of her growth in accordance with her value,
motive and competence through the dialogue.

We are making steady efforts to help create a society whereanyone can work vividly with or without their disabilities

Human Resources《 Support of Career Development 》

Promotion of Employment of the Persons
with Physical or Mental Disabilities

Supply Chain

For female workers during pregnancy and parenting, it isespecially important to have dialogue with their superiors in a
detailed manner.
In fiscal 2015, we introduced a system to organize dialogue
between such an employee and her superior when she is foundpregnant, one month before maternity leave, before return towork from childcare leave and two months after return to workfrom childcare leave, to help her return to work smoothly andwork actively after the return from childcare leave.

Products & Services(Note 1) Above graphs cover data for Sumitomo Electric employees,
including those on loan to Sumitomo Electric aﬃliates and other organizations.
(Note 2) Managers: assistant managers, section managers, division managers and management(Note 3) Section managers or higher positions: section managers,
division managers and management(Note 4) Sumitomo Electric and its consolidated subsidiaries

Core
Category

persons

Group's CSR Activities

persons

I took maternity leave and childcare leave twice and now
continue to work while using the short-time work system andthe teleworking system. Although the number of female
employees is growing, I assume that there are still few
superiors with experience of having female subordinates who
continue to work after childbirth.
When I participated in the childbirth and rearing support
program, the Human Resources Division provided my senior
with explanations about how hard it is to continue working
during pregnancy or after return from maternity leave and whatmakes female workers anxious, as well as a description of therelated systems. With understanding from the senior, I havebeen able to keep a balance between work and child rearing
while feeling motivated without lack or excess of consideration.
While I have great support from various programs, it is still hardto balance childcare and work. There was no room in my heart
to think about my future career and I sometimes felt anxious
about until when this situation would continue. In the training
program for the superiors of female main career track
employees, I had an opportunity to make a list of my strengths,
weaknesses, things that make me happy and other items,
which allowed me to somewhat image how I can grow throughmy current work, as well as my career path after the growth. I
hope that more initiatives like this are introduced to establish a
pleasant work environment in the future because they can give
employees, including men, good opportunities to turn a vague
feeling of uneasiness into a positive feeling.

50

Safe and Sound Workplace
Number of Employees with Disabilities at Sumiden Friend by YearThe
disabled

2011

2012

2013

2014

2015

2016

2017

12

12

20

28

33

39

45
(Persons)

Respect for Human Rights in the Workplace
We respect human rights and strive toestablish sound and lively workplaces
Sumitomo Electric respects human rights in its business
operations in accordance with the Universal Declaration of

Employment Rate of the Physically or
Mentally Disabled by Year

Employment rate as ofJune 15 of each year

（％）
2.2

2.17

2.17

2.21

2.11

2.1

2.01

2.0

2.02

2.00

Human Rights, which stipulates that All human beings areborn free and equal in dignity and rights.
More specifically, the Sumitomo Electric Group Charter ofCorporate Behavior, which was instituted based on the

2.05

Sumitomo Spirit and the Sumitomo Electric Group Corporate
Legallyrequired
percentage

1.91
1.9

Principles in September 2005, specifies respect for humanrights, professional development and establishment of safe
and sound workplaces.

1.8

While constantly responding to increasing social demand as

1.7

to human rights and other changes in the environment,

0

2009

2010

2011

2012

2013

2014

2015

2016

2017 (Year)

Special-purpose Subsidiary Group＊

Sumitomo Electric takes a wide range of measures as acorporation to solve various human right issues, and strives tocreate lively workplaces where each employee can work withenthusiasm.

C S R VO I C E《 Compliance Code of Conduct 》

We enjoy working withcolleagues every day

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

Haruto Arakawa, Hidemi Asada, Masaya Shiki《 Human Rights Training and Enlightenment 》

Osaka Branch, Sumiden Friend, Ltd.

We are also making continuous efforts for human rights
training and enlightenment to solve a wide range of humanrights issues including discrimination and sexual harassment.
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 2016, the total number of participants in the humanrights-related seminars, including the education provided
We are working on the site of Osaka Works as
employees of Sumiden Friend. There are currently 13
employees. We engage in jobs to assist operations, suchas the loan of foliage plants, conversion of papermaterials into PDF documents, packing of buffer materials
and sorting out of documents. In 2016, we cooperated in
the Seka-Waku Book Campaign, which aims to sendvaccines and make donations to children in developing
countries. All of us stood in front of a cafeteria for fourdays and loudly asked employees of the Osaka Works todonate second-handbooks. The jobs in thecompany are challenging
and giving us the joy ofworking. We hope toengage in various jobs
because we believe we cando more.

mainly by Human Rights Task Committee members at theworksites, was 8,737.
As part of the enlightenment activities, we organize an
in-house contest for human rights slogans every year. The
contest in 2016 received 4,269 slogans.

《 Establishment of Consultation Services 》
We have set up two consultation services regarding humanrights. One is supervised by the Compliance Committee andintended to support employees with focus on laws andregulations in general. Another is managed by the Human
Resources Division and deals with various kinds ofharassment in working environments such as sexual
harassment, pregnancy discrimination and abuses ofauthorities. With these services, Sumitomo Electric has inplace a system to quickly gather information on any violationof human rights and take appropriate measures against them.

《 Cooperation with
Human Rights Organizations and Governments 》
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.

Glossary ＊Special-purpose Subsidiary Group

51 CSR Report 2017

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.

The union and management are committed tosolving various problems through in-depth discussions

2,073 2,068

2,050

2,049

2,031 2,042 2,023

2,042 2,042 2,047

2,024

2,000
1,950

1,965

0

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

(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 are loan to subsidiaries))(Note 2) The data are based on January to December in 2016

Implementation of the Survey toCreate a Lively Working Environment
We have added questions about dissemination andsharing of VISION 2017 for better understanding of
the current situation of each workplace
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 2016 as well, about 20,000 employees were surveyedin October and November, including those of Group
companies. Some overseas Group companies were also
covered from the survey in fiscal 2015.
The scores are presented in the figure below. While thesurvey results show improvement in most items, there are still
issues to be addressed in some areas, and we will design andimplement personnel measures to respond to them. The
survey results are also fed back to the person responsible foreach organization. Each workplace specifically identifies
possible problems and promotes measures to solve them.

Products & Services

Results of the Survey toCreate a Lively Working Environment
3.64

Dissemination ofBusiness Spirit andCorporate Principles

3.60

Supply Chain

Manager'sManagement

3.94

Workplace
Discipline

3.27
Human Resources

Workplace
Atmosphere

3.47
Devotion to Job

3.30
Target for 2017:
1,900 to 1,999 hours in a year

Encouragement of
employees totake paid holidays

Target for 2017:
Average number of paid holidays taken
by an employee in a year is 15 days.

Communicationin the workplace

Year
Average overtime
hours per month

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 201622.6 22.1 21.0 14.2 19.1 20.5 18.6 19.3 20.4 20.8 20.2
hours hours hours hours hours hours hours hours hours hours hours

3.41
FY 2016
FY 2015
FY 2014
FY 2013

3.54

Satisfaction in
Working

FY 2007

0
Bad

2

3
5-grade scale

4

5
Good

Average number ofpaid holidays taken by 11.5 11.4 12.1 12.4 11.5 12.3 11.7 10.4 12.1 12.1 14.1
days days days days days days days days days days days
employees per year

CSR Report 2017

Social Contribution

Average Overtime Hours and Average Number ofPaid Holidays Taken by Employees by Year

Environmental
Preservation

Reduction of total
annual working hours

Motivation

Core
Category

Sumitomo Electric has promoted company-wide campaigns
with the aim of ensuring that employees can achieve the properbalance between work and life. In the SWiTCH 17 Campaign,
which was launched in fiscal 2014 and includes the previous
initiatives, individuals and workplaces set targets in the four
categories of work style (review of the way of working), healthcare (physical and mental health management), communication(improvement of communication at the workplace) andself-development (improvement of skills or knowledge with
employees own will), and work to meet the targets.
To create a workplace that allows diverse staff to work
comfortably, which is essential to compete globally in the
future, it is necessary to further promote the review of working
styles. We set targets for the reduction of total annual working
hours and encourage employees to take paid holidays, while
making efforts to improve productivity in all Group companies
and divisions.
In 2017, we introduce a system to take paid holidays in aplanned manner (five days on an individual basis and two days
on a divisional basis) to encourage employees to proactively
take paid holidays.
The measures are taken in line with the issues of individual
workplaces and persons identified based on the results of theSurvey to Create a Lively Working Environment, a questionnaire
survey to investigate the awareness of employees, in order tomake the workplaces more attractive.

2,100

Group's CSR Activities

We are promoting creation of workplaces where
employees can work lively to achieve VISION 2017

(Hours)Governance

SWiTCH 17 Campaign

Average total working hours by year

Business Outline

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. While working styles
are increasingly diversified, 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.

Basis for Management

Labor-Management Relationship

52

Organization of Town Meetings
We provide employees with opportunities to havedirect dialogue with executives and make use of
their opinions to facilitate various initiatives
To enhance communication inside the Company, we organize
town meetings at each of our Works, in which a group of
employees in speciﬁc functions from different sections
directly talk with board members, general managers or otherexecutives.
The participants have precious opportunities to inform theexecutives of problems and requests concerning humanresource development, promotion of diversity and work stylereform, as well as those speciﬁc to their functions, and sharesuch problems to seek clues and solve them. The meetings
also provide the participants with opportunities to listen
directly to the policies of the Company and opinions ofexecutives and to help them create networks with employees
in other divisions who are close in age.
In fiscal 2016, we organized the town meetings for section
chiefs and deputy section chiefs in production sites at thethree Works of Osaka, Itami and Yokohama, as well as the
town meetings for managers and main career track
employees at the eight locations of Osaka Head Office,Tokyo Head Office, Osaka Works, Itami Works, Yokohama
Works, Chubu District Office, and the areas in Kanto and
Hitachi. The opinions and other comments presented in the
town meetings are communicated to the relevant divisions on
a timely basis and used for organizational operation, planningof personnel systems and other purposes, as well as for thefacilitation of the initiative.

Sumitomo Electric Group
Health Management Declaration
We will further enhance our activities to realize healthmanagement* in cooperation with the Health Insurance Society
The Sumitomo Electric Group cannot achieve sustainable
development or growth without the health of each employee.
The Japanese Government selected Extending the nation's
healthy life expectancy as one of the main themes in its
Japan Revitalization Strategy (Cabinet Decision in June 2013).
In the strategy, companies are required to engage in thehealth management of their employees actively.
While our Group had already mentioned its commitment toSafe, Sound Workplace and Employees' Growth andDevelopment in the Sumitomo Electric Group Corporate
Principles and the Sumitomo Electric Group Charter ofCorporate Behavior, we also announced the Sumitomo
Electric Group Health Management Declaration in line withthe social demand mentioned above in December 2015.

《 Establishment of the Sports &Wellness Project Promotion Office 》
We established the Sports & Wellness Project Promotion
Office in January 2017 for the realization of healthmanagement. This office encourages employees to improvetheir health, enhance awareness of health and develop
healthy habits so that they can work vigorously for a longtime. In the meantime, health and sports are common topics
for everyone. Through the organization of interesting eventsand support of corporate sports activities, we will work
actively to create lively workplaces.

《 Lifestyle Habit Seminar 》
We invited a lecturer from Sumitomo Hospital and held aseminar on the mechanism of metabolic syndrome andmeasures to prevent it under the theme of "11 years from the* Health management is a registered trademark
53 CSR Report 2017of Workshop for the Management of Health on
Company and Employee, an NPO.

indication of metabolic syndrome - correct understanding and
its results." The seminar was also broadcast on television in
the company sites, and 167 participants enhanced theirunderstanding of the subject.

《 Health Festa 》
We organized Health Festa in conjunction with the Sumitomo
Athletics Festa held on October 16, 2016. With thedevelopment of fitness habit among employees and theirfamilies as the theme, the event provided an exercise cornerfor children, physical fitness measurement services and yoga
class, attracting about
400 visitors including
local residents.

Health Festa

Mental Health
We are committed to management of
mental health care for employees across the Company
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. For employees who are absent or on leave due
to mental health issues, we have a program to provide
step-by-step support to help them return to work, and takemeasures carefully in cooperation between workplaces, HR
staff members and company doctors and other specialists.
Number of Employees Who Took Mental Health Training Course
2009

2010

2011

2012

2013

2014

2015

2016

(persons) 285

215

767

521

557

580

367

1,221

Year

Support for Balancing Work and LifeWe actively promote the development ofchild and family-care related systems
To support employees in balancing workand life, Sumitomo Electric is committed
to promoting the work style that achieves
the proper balance between work and lifeand has also developed child andfamily-care related systems actively. For
these efforts, the Company has beenMark Certifying
certified by the Ministry of Health, Labor Corporate Support for
Parenting, Kurumin＊
and Welfare as a company that helps its
employees balance work and childcare based on the Act on
Advancement of Measures to Support Raising
Next-Generation Children.
In fiscal 2016, we introduced a teleworking system in July toincrease job opportunities for the employees subject toGlossary ＊Mark certifying corporate support for parenting, Kurumin

The Ministry of Health, Labor and Welfare granted this mark to Sumitomo Electric for achieving thegoals set under its First Action Plan (from April 2005) to Fifth Action Plan (to March 2015) basedon the Act on Advancement of Measures to Support Rising Next-Generation Children.

constraints on their work at various life stages(pregnancy/childbirth, child rearing and nursing care) andthereby develop an environment where all employees canperform at their full potential. In addition, nursing careseminars were organized in October and November toprovide relevant information for the generations that may
face the need to care for family members. We thus makeefforts to help employees balance work and life.

《 Childcare Centers 》
As a measure to foster a supportive environment forElectric opened childcare centers at its Yokohama and Osaka
Works in March and April 2008 respectively, and added athird center in Itami Works in March 2009. As of March 31,
2017, these three centers take care of 57 children in total.
For employees who cannot use our childcare centers, we aretaking other supportive measures such as subsidizing their《 Hokatsu Concierge System 》

We provide each of the employees withvarious types of support

In the activities to find childcare facilities to take care ofchildren ( hokatsu in Japanese), various kinds of know-how

In April 2008, Sumitomo Electric introduced a scheme toactivities depend on the childcare environment in the place

reemploy employees resigning due to circumstances beyondof residence and the month of birth of the children.

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

This Hokatsu Concierge system, which was started in

the scheme, we organize interviews and reemploy eligible

November 2014, aims to help employees during childcare

persons when they are able to return to work (within threeleave return to work smoothly at the time she hopes toyears or, for those who moved overseas, five years from theirreturn. Know-how on hokatsu depending on the

resignation) and, as a general rule, assign them to theircircumstances of individual employees, as well as information

former workplaces.

on childcare facilities, is provided in this system.

《 System to take a leave to accompany his/her spouse
who is assigned overseas 》《 Teleworking System 》

In April 2017, we introduced a system in which an employee

employees who face restrictions to their work due to

can take a leave of absence to accompany his/her spousechildcare, nursing care, etc. to work at home or other

who is assigned overseas. This system allows temporary

locations in fiscal 2016. We will continue to work to enhance

retirement in such a situation in order to prevent employees

the flexibility of working styles and develop an environment

from retiring and encourage them to return to work after thewhere diverse human resources can play more active roles.

We introduced a teleworking system, which allows

leave.

FY

Employees who tookchildcare leave
FemaleTotal

Enrollment in thereemployment system
Male

FemaleTotal

Users of internal
child care centers
for children

Users ofthe volunteer
holiday system

12（10）115（60）127（70）

65

18

254

272

1

21

22

64

6

2013

15（13）106（56）121（69）

55

21

245

266

3

23

26

62

7

2014

16（12）134（54）150（66）

71

19

264

283

1

29

30

57

7

2015

29（28）124（57）153（85）

92

20

276

296

1

30

31

56

9

2016

40（25）137（42）177（67）

94

22

262

284

1

25

26

57

8

Supply Chain

2012

The number in brackets indicates the number of the employees who took the leave for the ﬁrst time in the ﬁscal year.
(Note) Above table covers data for Sumitomo Electric employees, including those on loan to Sumitomo Electric aﬃliates and other organizations.

I am using the teleworking system
Assistant Manager, Solution Support Group/IR Office, Accounting Division

Social Contribution

CSR Report 2017

Environmental
Preservation

I returned to work immediately after my daughter reached the age of one. After returning to work, I
had no choice but to shorten the working hours due to the long commute time. I also haveexperience that I interrupted my work in haste with a call from the daycare center telling that mydaughter got sick. Then, I learned the introduction of a teleworking system and consulted mysuperior if I could use the system. With his approval, as well as an understanding of workcolleagues, I started to use the system once a week or so. The reduction of the commute timeenabled me to work on a full-time basis, and I have also expanded the scope of work than thatwhen I was using the short-time work system. The teleworking system can now be used in morevarious ways and is easier to use, which is convenient for me. Above all, I am grateful that mysuperiors and colleagues express understanding for the use of the system. It would be difficult inmany ways to balance child rearing and work without the understanding of the company while it is needless to say that cooperationof family members is also essential. I feel that the work environment in Sumitomo Electric, which has well-developed systems for
employees who are raising children and caring for family members, is very pleasant. While there are various troubles as my daughter
is still small, I would like to do my best while thanking the company for the support.

Human Resources

C S R VO I C E

Rieko Miki

Products & Services

Male(persons)

Employees who used
Employees who took
the short-time work system
leave when theirspouses gave birthMale Female Total

Core
Category

Number of Users of the Employee Support ProgramsGroup's CSR Activities

are needed because the approach and schedule of such

Governance《 Reemployment System 》

Business Outline

use of other childcare centers.

Various Support Programs

Basis for Management

employees working full-time while raising children, Sumitomo

54

Human Resource Development
Personnel Needed by Sumitomo Electrictraining (OJT) centering on management by objectives.
In particular, (1) The Sumitomo Spirit, Corporate Principles andPersonnel needed by Sumitomo Electric are defined as those

CSR, (2) Management policies and visions, (3) Compliance, (4)who honor the Sumitomo Spirit, understand the Sumitomo

SEQCDD ＊ and (5) Diversity are selected as the five basic

Electric Group Corporate Principles, possess high levels of skill

subjects of the compulsory training for all employees.

and knowledge rooted firmly in the basics, and who can playE-learning, video lectures and other tools are also used toactive roles in the global community. We provide various training

disseminate this training on a global scale.

programs to support employees in becoming such personnel
based on the concepts of the individual employees' strong

Cultivation of Manufacturing Personnel

motivation for self-development and on-the-job coaching andclose communication between superiors and subordinates.

Based on the basic concept that manufacturing ishuman resource development, we promote cultivationof manufacturing personnel through the three main
initiatives of ① basic training on manufacturing,② practical training and ③ small-group activities

SEI University
We work to improve the value ofhuman resources throughout the Group① Basic training on manufacturing

SEI University represents the Sumitomo Electric Group's① Disseminating the Sumitomo Electric Group's corporate philosophy,

The underlying concept is to learn with actual machines andproducts using all the five senses. Designed to deal with thelatest technologies, the curriculums are wide ranging fromtraining on SEQCDD, which are essential subjects for
manufacturing, to professional courses on the Group's
proprietary technologies and techniques and equipment
control and maintenance technologies. These programs are
systematically organized and provided in a planned manner.
The number of the participants is also growing every year.
Overseas, in China and Southeast Asia, in addition to basic
training on SEQCDD, we organize training on basic
maintenance of equipment with focus on safety on a regularbasis.

② Sharing the Sumitomo Electric Group's management strategies
and vision, andNumber of participants in training on manufacturing by year

comprehensive training and education system. With the aim of
becoming a Glorious Excellent Company, the entire Group isdeveloping various training programs at SEI University tofamiliarize the entire Group with the Sumitomo Spirit and theSumitomo Electric Group Corporate Principles, share the same
management strategies and visions and thereby nurture humanresources with competence, skills and knowledge that enable
them to demonstrate their capabilities in the international arena.

Fundamental Principles of SEI University
SEI University will serve as a venue for:③ Developing employees' abilities, skills and knowledge so thatthey may play active roles in the global community.

(person-days)

15,20014,467

16,00014,00012,000Training System of SEI University

10,000More than 300 programs are conducted tosupport human resource development

8,000

At SEI University, we organize more than 300 training programs

4,000

of various kinds for different types of employees ranging from

2,000

executives to new employees, including position-based

0

6,000

compulsory training organized as Group-wide training for theemployees in specific positions or involved in specific2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 (Fiscal year)
TargetEmployees from Overseas Aﬃliates

Aﬃliate employees

Sumitomo Electric employees

operations, as well as optional training available forparticipants depending on their operational needs, to support② Practical training

human resource development. In addition, each division

Total number ofparticipants

Total length oftraining

Sumitomo Electric employees

47,654 persons

339,909 hours

Employees ofGroup companies in Japan

24,008 persons

77,099 hours

We develop two types of practical professional training aimed at
cultivating key personnel who are anticipated to drive
manufacturing innovation and reinforce SEQCDD improvement,
namely MKP (Monozukuri Kakushin Pro Jissen Dojo, or
manufacturing innovation professionals' workshop) and GKP(Genba Kaizen Pro Jissen Dojo, or on-site improvement
professionals' workshop). In this training, important challenges of
the respective divisions are selected as the themes, and trainees
are assigned to the local sites to perform practical activities.

Employees ofoverseas Group companies

10,520 persons

53,715 hours③ Small-group activities

Total

82,182 persons

470,723 hours

Sumitomo Electric develops and promotes small-group
activities (called SGA ) to solve problems and achieve

conducts divisional training to learn necessary skills andknowledge for the individuals along with daily on-the-job
Record of the training sessions organized acrossthe Sumitomo Electric Group in ﬁscal 2016
Applicable employees

Record of unique training sessions organized inindividual Group companies in ﬁscal 2016
Applicable employees

Total number ofparticipants

Total length oftraining

Domestic Group companies(23 companies)

21,568 persons

64,556 hours

Overseas Group companies(83 companies)

122,792 persons

1,019,667 hours

Total

144,360 persons

1,084,223 hours

Training session on how to promote SGA in China

Glossary ＊ SEQCDD

55 CSR Report 2017

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

Training programs commonly developed worldwide
Position

Addressing Globalization across the Group

General Manager

Global Leadership Development Program (GLP)

ManagerManagement Program based on
the Sumitomo Spirit (MPSS)

Staﬀ

ITP＊ (5 basic subjects, business skills)

Products & Services

We organize global training programs such as the Executive
Training Program and the Global Leadership Development

Examples of training programs

Executive training program (Action Learning)

C S R VO I C E

I put in practice what I had learned in the training program todevelop personnel in charge of the promotion of SGA

Jorge Ruelas General Manager Autosistemas de Torreon S.A. de C.V.

Social Contribution

I attended the MPSS held in Mexico City in 2016. This program was basically composed of two workshops.
In the workshop 1, participants learned the Sumitomo Spirit and the history of Sumitomo. It made me proud of thecompany for which I am working and also helped me understand the philosophy about work. I feel that I have got
help not only for my job but also for my life through this training. The main objective of the workshop 2 was toacquire management skills. It was an excellent lesson, which also included the study of actual cases. I suppose that this kind of training
is helpful for employees and also useful for my job in a practical sense. Another advantage was that I had an opportunity to meet
employees from other Group companies through the training program. Participants shared their own experiences and learned fromeach other. As a result, I made many good friends by the end of the session. I would like to keep growing and contribute to thecompany. My goal is to make my company the top factory in Mexico.

Environmental
PreservationC S R VO I C E

Human Resources

I am very grateful that I had an opportunity to participate in the training program that aimed to develop personnel in charge of thepromotion of SGA in fiscal 2015, which was organized by Technical Training Center of Plant & Production Systems Engineering
Division and Sumitomo Electric Management (Shanghai) Co., Ltd. Through the two-day study, I improved my understanding of what the personnel incharge of the promotion of SGA should do, how to promote the activities, how to improve problems and other issues, and also deepened exchanges
with participants from other Group companies.
I put in practice the knowledge I had learned in the program in my company. Firstly, I sorted out the current situation of SGA and shortcomings in thecompany and then provided training to enhance SGA for the employees in charge of promotion, guidance and practice of SGA. The effect of the
training was checked by conducting a questionnaire survey and giving support and instruction during site inspections. The training program wasprovided nine times from November 2015 to September 2016 with a total of 252 participants, which accounted for about 60% of all employees.
In the course of the promotion of the training and practical activities, the employees learned that SGA is useful and the staff in charge of the practicealso improved their skills. At the same time, I enhanced my knowledge and leadership through the promotion of the training activities. I will continue
the training and study sessions in and outside of the company, as well as site inspections, to raise the SGA level of the company.

Supply Chain

Zhu Yuliu Assistant Manager, Quality Assurance Division Zhongshan Sumiden Hybrid Products Co., Ltd.

I participated in MPSS in 2016

Core
Category

We develop training activities globally across the Group

Executive

Group's CSR Activities

To ensure that teams make achievements, it is necessary to
promote diversity and allow each of the team members to display
their abilities. Therefore, we have incorporated diversity education
into the curriculums of all training programs for newly promoted
employees to make them aware of the importance. For young
employees, hands-on training was provided to make themrecognize diversity around them and find themselves accepting it.
We also organized new training programs to review working
styles and to support the career of female employees, as well as
self-rediscovery training for experienced female employees tore-examine their abilities and potentials. We will continue toactively work for a wide range of training programs for thepromotion of diversity.

Governance

We take various opportunities to promote diversity

Business Outline

Promotion of diversity

Program (GLP), in which executives and general managers ofoverseas affiliates are invited to Japan. In these programs,
participants learn from each other through workshops, which
also aim to develop a sense of unity as a group. In addition, weorganize the Sumitomo Electric Group Management Program
based on the Sumitomo Spirit (MPSS) to disseminate theSumitomo Spirit among management personnel who play
pivotal roles in the respective companies and improve theirskills to manage their subordinates. This training program,which has been provided in Europe, China, Southeast Asia andthe United States, was also organized in Mexico for the firsttime in fiscal 2016. The program is provided twice every year ineach of the regions to actively develop training on a global
scale.
In fiscal 2016, we organized some of the training programs
provided in Japan for local employees in overseas affiliates,
including training on how to solve problems provided in
Thailand, as well as training on facilitation and businessnegotiation techniques provided in China.
We have also established the Human Resources Development
Committees on a country basis (China, Indonesia, Malaysia,
Thailand and the United States) to promote training programs
that meet local needs. Each committee works to promotevarious human resource development measures under theleadership of local HR managers of the companies and persons
in charge of human resource development in the regional
companies.

Basis for Management

objectives voluntarily on a workplace basis with the aims ofdeveloping human resources and energizing the workplace.
This initiative, launched in 1958, has been also introduced into
overseas companies and expanded to involve a total of 65
thousand participants from 151 companies across the Group in
working on 2,962 themes.
We are working to further enhance the contents and operationof these three types of education in reference to manufacturing
strengthening activities while introducing the ideas of theoperating divisions and considering requests from the divisionsof the participants.

Glossary ＊ ITPAbbreviation of Introduction Training Program, which provides the minimal
knowledge that all employees in the Sumitomo Electric Group should know

CSR Report 201756

To Become a Company with the Highest Level of Safety
Basic Approaches《 Promotion of Structural Reinforcement on a Company-wide Scale 》

The Sumitomo Electric Group considers that securing of●Dissemination and application of safety global standards●

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 health●activities involving all employees to eliminate risk factors from

Development and training of human resources inJapan and overseas●

our workplaces, as well as to become a company with the●highest level of safety. Specifically, we have set medium- tolong-term Sumitomo Electric Group Safety and Health●

Targets. To meet the targets, we specify priority activities andpriority subjects for each fiscal year at the Health and Safety
Committee, which is composed of members from●management and the union.

1．Realizing accident-free worksites andcreating comfortable working environments

Make use of position-based education and KKP＊
Development of local safety key personnel: support of basesin North America in addition to bases in China and ASEAN

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

Recognition of weaknesses and indication of the direction●

Development of the promotion system

Strengthening of chemical management●

Sumitomo Electric Group Safety and Health Targets

Dissemination of Sumitomo Electric's safety standards
on a global scale●

Strengthening of the management of speciﬁc chemical
substances and poisonous and deleterious substances
Cooperation with the Occupational Health and Safety
Management Committee

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

Examples of Activities to Prevent Serious Accidents

Identification of Serious Disaster Risks,
Local Inspection and Completion ofPreventive Measures

Activity targets for ﬁscal 2016●

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

No. of no lost work time injuries and minor injuries: 30 or less

■ Voluntary inspection in the bases

Based on the analysis of serious accidents that occurredPriority subjects for ﬁscal 2016

in the Japanese manufacturing industry, we have
prepared a checklist that specifies 60 inspection items in

Safety activities involving human lives withparticipation of all employees under the initiativeof top management

seven categories for each type of accidents such as
becoming caught in equipment, forklift-related accidents,
falls and electric shocks. Our bases in Japan and overseas《 Reinforcement of fundamentals in each division 》●

Strong leadership by top management●

Establishment of activities involving all employees

conducted a voluntary inspection on serious disaster risks
in their own processes in accordance with this checklist.
■ Local inspection① Activities to prevent serious accidents
Conformity with global standards and continuous
implementation of inspections

Based on the results of the voluntary inspection in the●bases, a local inspection is conducted in each base by② "Safety! Power OFF Activity"
Identiﬁcation of the operations in which the power
cannot be turned oﬀ, and implementation ofcountermeasures (with priority given to hardware)

the staff in charge of the safety, safety & environment③ Activities for ensuring safety in multi-worker operationsin 129 bases to identify any risks that could lead to④ Prevention of recurrence of similar accidents involving injury
Horizontal diﬀusion and completion of the preventive
measuresserious accidents and therefore needed to be●

department staff and plant maintenance department
staff. In fiscal 2016, the local inspection was conducted●●

Bottom-up activities involving all employees witha top-down approach●

Identiﬁcation of daily changes and problems throughthe 1-2-3 activities《 Strengthening of Weak Points on a Company-wide Scale 》●●

the implementation and confirmation of theeffectiveness, are supervised by the Safety &Environment Department to ensure that the measures
are taken and established and thereby prevent

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

Prevention of unsafe actions by considering thepsychology of employees as well based on KK mapping

Strengthening of safety measures for plants and equipment●●●

to the check of the activities in the measures, progress of

Promotion of activities to prevent unsafe actions●●

ranging from planning of measures to address the risks

occurrence of serious accidents.

Global safety evaluation●

addressed. Responses to all of the identified risks,Inspection of special material gas and combustible gas
facilities, electrical devices and outdoor utilities to
identify any problems and assess the degree ofobsolescence, and renewal of them
Maintenance and improvement of equipment safetymeasures that are not dependent on personnel

Strengthening of safety measures in Staﬀ Group

Glossary ＊ＫＫＰ

57 CSR Report 2017

Monozukuri Kiban Kyoka (reinforcement of fundamentals for manufacturing) Training Program.
Practical training on health and safety, quality and manufacturing (two- or three-day course)

Accidents involving injuries
Sumitomo ElectricGroup employees

TemporarySub
worker,total
subcontractor
Japan Overseas

Fiscal 2015

Employees of
the aﬃliates of
the SWS Group

Total

Japan Overseas

Accidents resulting
in lost work time
No lost work
time injuries

4

4

3

11

1

2

14

12

6

2

20

7

1

28

Minor injuries

3

3

1

7

3

6

16

Total

19

13

6

38

11

9

58

Accidents resulting
in lost work time
No lost work
time injuries

5

3

0

8

1

3

12

11

7

3

21

1

7

29

Minor injuries

5

8

0

13

3

18

34

Total

21

18

3

42

5

28

75

Lost Time Injuries Frequency Rate＊ for Employees in Japan by Year

Governance(Note) The data on employees of the Sumitomo Electric Group cover Sumitomo Electric andits 108 aﬃliates (excluding Sumitomo Wiring Systems, Ltd. (SWS) and the other listedcompanies), as well as the companies that are not aﬃliates of Sumitomo Electric but
subject to occupational health and safety-related guidance and supervision by
Sumitomo Electric. Employees of the SWS Group cover SWS and its aﬃliates.

Business Outline（Frequency rate）

2

1.9

1.83

1.8

1.62 1.61 1.62 1.59 1.58 1.66 1.61 1.63

1.5
1

1.15
1.02 1.09 1.12 0.99 0.98 1.05 1.00 0.94 1.06 1.06

0.5

0.33

0.16 0.10

0

0

0.08

0

0

0.06

0.20 0.14

000.08 0.14

0.03
00.19 0.14 0.11
00.07 0.07

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 （Fiscal year）

All industries

Manufacturing industry

Sumitomo Electric GroupSWS

The Wintec Group aims to achieve the target ofzero accidents for a ﬁscal year
Sadamitsu Miyake Director and General Manager of Manufacturing Department, Sumitomo Electric Wintec, Inc.

Environmental
Preservation
Social Contribution② Bottom-up activities at Shigaraki Works: Troublesome and difficult operations are identified and discussed in each workplace, and the results arereported at the time of a workplace inspection, in which the president and equipment design and maintenance staff participate, to discuss andpromote solutions including budgeting of hardware on the spot. Any problems are reported to the top management to solve them, which facilitatesother reports of problems and thereby maintains the activities. Accordingly, the commitment of the top management to achieving and continuing zeroaccidents is significant. We have also set up workplace exchange meetings to share "hiyari" or near-miss reports and information on their improvementat other workplaces in order to stimulate the activities. The bottom-up activities will be also introduced into other Group sites, and Shigaraki Works
will continuously assist them in stimulating and establishing the activities as the mother factory.
We unfortunately failed to achieve zero accidents in fiscal 2016 when a no lost work time injury occurred at Shigaraki Works, which should serve as amodel for safety, on March 14, 2017, and the Group's record of having no accident ended at 517 consecutive days. Learning a lesson from theaccident that even an operation that is not considered dangerous, troublesome or difficult operations can cause an injury, we will all enhance theawareness of never injuring or getting injured and improve sensitivity to risks to further deepen the bottom-up activities with a top-down approach.
We will continue to strengthen the safety activities to achieve and maintain zero accidents in the Wintec Group for each fiscal year.

Human Resources① Support for overseas bases by Shigaraki Works: As the first step, we started to hold monthly conference calls mainly with Japanese expatriates andannual gatherings with both local staff and Japanese expatriates. In the first conference call, the overseas bases made requests for actions to address
their problems, including the provision of more specific directions on horizontal development for information sharing and investigation, training of local
staff in charge of safety and safety managers and supervisors and promotion of hardware-related measures, and the Shigaraki Works enhanced its
support activities. Equipment design staff also join the conference calls and discuss any unclear points and whether any support is needed or not.
Thus, the conference calls serve as a means not only to give unilateral directions but also to accomplish the directions that have been given. The
annual gatherings are used for information sharing and personal exchange as well as for training of local staff. In addition, some of the bases aredesignated as special operation sites for safety management by the division to enhance support activities including the dispatch of staff to the sites,
and the information is shared with other sites to improve the level as a whole.

Supply Chain

Everyone, Goanzen Ni (safety first)! Sumitomo Electric Wintec manufactures magnet wires, which are a Bottom-up activities
main component of various electric and electronic devices such as motors and transformers. The company
was established in 2002 through consolidation of the magnet wire division of Sumitomo Electric with Daiichi Denko Corporation. While the Wintec
Group has six production sites in total, composed of two in Japan, namely Shigaraki in Shiga and Taguchi in Niigata, and four overseas sites in Thailand,
Malaysia, China and Indonesia, we have never achieved the target of zero accidents in the Group as a whole. In fiscal 2014, five accidents involving injury
occurred in the Group (three in Japan and two in other countries), and Shigaraki Works, which is the mother factory, was designated by the Safety &Environment Department of Sumitomo Electric as an operation site subject to priority management to enhance and promote safety activities.
The concept of the safety activities is "Bottom-up activities with a top-down approach." In these activities, the top management clearly indicates thepolicy, collects information on problems identified in a bottom-up manner, such as troublesome and difficult operations, which will be addressed bypromoting safety activities under the initiative of it, and helps solve the problems. The solution of the problems then leads to the identification of otherproblems, which makes the activities endless with an upward spiral. While there is a top-bottom relationship at each level, this article focuses onbottom-up activities and assistance of them and introduces (1) activities between Shigaraki Works, the mother factory, and overseas bases and(2) examples of activities in Shigaraki Works.

Products & Services

C S R VO I C ECoreCategory(Note) The frequency rate of injuries with lost days for employees in Japan in the Sumitomo
Electric Group covers Sumitomo Electric and its 45 aﬃliates in Japan (excluding SWS
and the other listed companies), and the frequency rate in SWS covers SWS.

Group's CSR Activities

During ﬁscal 2016, we had 38 accidents involving injury in total,
which were broken down into 11 injuries resulting in lost work
time, 20 no lost work time injuries and 7 minor injuries (excluding
employees of the Sumitomo Wiring Systems Group), and thus
failed to meet the target of zero injuries resulting in lost work
time and 30 or less no lost work time injuries or minor injuries.
Meanwhile, there were no serious accidents while the total
number also decreased by 4 from the previous fiscal year. We
believe that this is a result of the four priority safety activities
launched in fiscal 2015, which were 1) Activities to prevent
serious accidents, 2) Safety! Power OFF Activity, 3) Activities for
ensuring safety in multi-worker operations and 4) Prevention ofrecurrence of similar accidents involving injury.
Looking at the injuries by situation, while injuries attributed toequipment decreased with the effect of disseminating the Global
Standards for Equipments and the priority safety activities, injuries
by inserting a hand into moving parts, by fall or by other actionsof people increased. It is a challenge to enhance the safety
awareness of all employees.
In fiscal 2017, based on the results in fiscal 2016, we are making
efforts to achieve a target of zero serious accidents and accidents
resulting in remaining disabilities, 24 or less accidents resulting inlost work time, no lost work time accidents or accidents causing
minor injury, as part of our activities to become a company withthe highest level of safety, as set in VISION 2017. Specifically, we
will continue and completely take the above-mentioned fourpriority safety measures implemented in fiscal 2016 to ensurethat the activities take root, and also make all employees
recognize our weaknesses and enhance their awareness of safety.

Fiscal 2016

In fiscal 2016, the number of the accidents involving
injury decreased slightly from fiscal 2015

Basis for Management

Safety Performance and Future Actions

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 201758

■CSR Core Category

Environmental
Preservation■

We aim to further reduce greenhouse gas emissions
We are committed to achieving an aggressive target of reducing
greenhouse gas (GHG) emissions by 5% from the ﬁscal 2012 level in ﬁscal
2017. With respect to energy-origin GHG emissions, which represent the

CSR Priority Theme

Prevention of Global Warming

vast majority of our emissions, we reduced energy consumption per unit ofsales by 20% from the ﬁscal 2012 level in ﬁscal 2016 as a result of the daily
eﬀorts of the whole Group to save energy. However, GHG emissions
increased by 1.9% from the ﬁscal 2012 level in ﬁscal 2016 due to a

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 andimprovement of energy saving initiatives at domestic
and overseas establishments, as well as reduction of
overall environmental impact of products throughout
their lifecycle.

production increase in overseas bases, and we need to make more eﬀorts.
In ﬁscal 2017, which is the ﬁnal year for the Action ECO-21 (Phase Ⅵ)
Campaign, we will obtain results from the training with a handbook on thevoluntary site inspection of plants for energy saving in Japan and overseas,
which was launched in the second half of ﬁscal
2016. In this training, which uses a
handbook summarizing the know-how
accumulated through energy saving
diagnosis conducted by the Energy
Saving Oﬃce, the person in chargeof each plant conducts
self-evaluation of the plant toacquire evaluation skills. We will
promote voluntary improvement◉ Develop the Action ECO-21 campaign based on
the ISO 14001 environmental management system

activities of the persons in◉ Enhance eﬀorts to introduce energy saving
initiatives into overseas establishmentsof the manufacturing processes of◉ Strengthen our capacity to propose environmentallyconscious products to contribute to reduction of
overall environmental impact across society

training program across the Group.

charge, who have full knowledge
the respective plants, through the

Takayuki Mishima Manager, Energy Saving Office, Safety & Environment Department

Environmental Management
Environmental Policy
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.

Organizations for
Promoting Environmental Management
The Corporate Environment Committee deliberates andmakes decisions on the Group's environmental preservation
activities and oversees the activities on a global basis.

President

Environmental Policy (extract)※
Basic Philosophy

Corporate Environment Committee

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＊

Environment Task Committees
Business Unit Environment
Committees

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

2. The Group will fulﬁll and enforce environmental management system.
●

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.

Glossary ＊Product Life Cycle Assessment (LCA)

59 CSR Report 2017

Method of quantitatively assessing inputs (resources, energy etc.), outputs(substances of environmental concern etc.) and their associated impact on
the natural environment, throughout the life cycle of a product, from relatedresource intake through manufacture, distribution and use to disposal.

Internal Environment
Audit TeamsWeb※ See our website for details.

http://global-sei.com/csr/environment/management.html

We examine measures to address risks and problems and formulate a growth strategy
Main environmental risks
Risk Factor

ImpactCountermeasures and Activities

Regulations on atmospheric emissions and wastewater discharge

ClimatechangeEnergy saving (evaluation, investment and activities)

Reduction of emissions
Display of environmental labels

Development and marketing of eco-friendly products

Renewable energy

Cost reduction and promotion of renewable energy

Temperature rise
Physical risks

Energy saving (evaluation, investment and activities),
renewable energy

Sea level rise

Business Outline

Carbon pricing
Regulatory risks

Implementation of detailed compliance audits

Basis for Management

Response to Environmental Risks and Opportunities through Environmental Management

Increase in the size and frequency of typhoons

Water

Restriction on water withdrawal/discharge
Changes in rainfall amountPhysical risks

Reduction of water withdrawal

Changes in rainfall pattern
Diﬃculty in the disposal due to disqualiﬁcation of the disposer, etc.

Reduction and recycling of waste,management of the disposer through on-site checks

Chemical substances

Certiﬁcation that no prohibited substances arecontained in products

Evaluation at the development stage and management
at the purchase and manufacturing stages

Environmental accidents

Shut-down (suspension) of operation

Prevention through the evaluation of facilities

Non-compliance with law

Shut-down (suspension) of operation

Group's CSR Activities

Notiﬁcation of diﬃculty in the disposal from the disposer

Waste

Implementation of detailed compliance audits

Payment of ﬁne〈Direct risks〉Investment in equipment for responses to regulations, increases in energy cost, restriction on energy use,
shut-down (suspension) due to wind or water damage〈Indirect risks〉Increases in the costs of raw materials, energy, water, waste, etc., suspension of operation due toan accident or non-compliance with law

Item

Targets for ﬁscal 2017

Targets for ﬁscal 2016

Fiscal 2016
results

Evaluation●●

Reduce 5% from FY 2012

Reduce 4% from FY 2012

Reduced 19%◎（1）CO2 emissions (in Japan and overseas):
reduction of the absolute amount●●

Reduce 5% from FY 2012

Reduce 4% from FY 2012

Increased 1.9%▼

Reduced 20%○

Reduce 20% from FY 2012●●

Reduce 5% from FY 2012

Reduce 4% from FY 2012

Reduced 25%◎（4）
Reduction of CO2 in logistics:
reduction of CO2 per unit of sales●―

Reduce 5% from FY 2012

Reduce 4% from FY 2012

Reduced 9.5%◎

（1）
Reduction of the zero
emission rate (in Japan)●―

0.3% or less

0.3% or less

0.03%

○

（2）
Reduction of the zero
emission rate (overseas)―●

9% or less

9% or less

8.9%

○

（3）
Amount of waste (in Japan):reduction of the absolute amount●―

Reduce 5% from FY 2012

Reduce 4% from FY 2012

Increased 9.4%▼

Water use: reduction of water use per unit
（4）of sales [Water use / sales]●●

Reduce 5% from FY 2012

Reduce 4% from FY 2012

Reduced 18.2%◎

Reduction of substances of （1）Release of chemical substances (in Japan):reduction of the absolute amount ofenvironmental concern
PRTR-designated substances●―

Reduce 5% from FY 2012

Reduce 4% from FY 2012

Reduced 16.1%◎

Management of chemical （1）Management of chemical
substances in products
substances in products●●

No issues

○

●

―

１００％

○

59％

○

114 thousand
tons/year○

energy consumption per unit of sales[Consumption in crude oil equivalent / sales]

Energy saving (oﬃces): reduction of energy（3）

consumption per unit of sales[Consumption in crude oil equivalent / ﬂoor area]

Promotion of
resource
conservation
and recycling（1）Eco Mind products

Expansion ofenvironmentallyconscious
product range

Ensure compliance with laws in Japan and overseas

Register 100% of new products（2）
Eco-products●―

60% of the ratio in sales(in Japan)（3）
Products with less CO2 emissions●―

Contribute to reducing CO2 emissions
by 100 thousand tons/year

56% of the ratio in sales(in Japan)
Contribute to reducing CO2 emissions
by 90 thousand tons/year

Legend ◎：Performance far exceeding the target (by more than about 150%); ○：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)

CSR Report 2017

Social Contribution●

Global warming
prevention

Environmental
Preservation●

Reduce 16% from FY 2012
(4% per annum; reduce 20% in 5 years)

Human Resources

Reduction of environmental impacts frombusiness activities

inoverJapan seas

Monetary value of environmental impacts(CO2, wastes, harmful substances, NOx
and SOx) / sales

Energy saving (production sites): reduction of（2）

Reduction ofenvironmental impact
from products

Period: Fiscal 2015 ‒ 2017

boundary

Supply Chain

Environmental
eﬃciency

Descriptions●

Products & Services

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. We are promoting
to develop the Action ECO-21 (Phase Ⅵ) Campaign as a three-year plan from fiscal 2015.

Core
Category

Action ECO-21 Campaign

Targets of the Action ECO-21 (Phase Ⅵ) Campaign

GovernanceRegulatory risks

60

Monitoring Based on
Environmental Efficiency

Environmental Eﬃciency＝Monetary value of environmental impacts (CO2, wastes, harmful substances, NOx and SOx) / Sales
Environmental eﬃciency（×10−4）In fiscal 2016, environmental efficiency was
improved by 19% from the ﬁscal 2012 level

16

16.02
13.28

12

The Sumitomo Electric Group has adopted environmental
efficiency calculated based on various environmental impacts
a c c o r d i n g t o L I M E＊ a s a g r o u p - w i d e i n d i c a t o r o nenvironmental management. The environmental efficiency was
improved by 19% from the fiscal 2012 level in fiscal 2016.

11.98

12.09

12.97

2014
Base

2015
Base

2016
Base

15.20

8
4
0

2012
Base

2013
Base

2017
Target(Fiscal year)(Note) Data on CO2 emissions and wastes are collected from Group companies in Japan andoverseas while those on harmful substances, NOx and SOx are from Group companies
in Japan only.

Education and Training
Training opportunity

We provide systematic education programs on
environmental conservation

Title of the training

Career (managerial
post-based)

To realize environmental management, the Sumitomo ElectricGroup 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.
The managerial post-based career training program involves
legal and general education on the environment. In fiscal
2014, on-site inspection of environmental facilities toenhance sensibility in environmental management was added
to the program.
We also provide technical education on chemical
management and other issues on a regular basis.

Position-based training
ISO 14001 internal auditor

DesignatedManagement of poisonous and deleterious substances
Notiﬁcation of Speciﬁed Facilities
Sumitomo Electric Group environmental activities
ISO 14001 self-awareness education
Technical education (energy saving, waste, chemical
substances, air, water quality and soil)

Optional

Education on legal issues
Waste treatment
Practical education on energy saving methods and the improvement
On-siteTraining with the handbook
Action ECO-21

Environmental Accounting

Financial items
Investment

Expense

Economic eﬀect(million yen)(million yen)(million yen)

Boundaries of tabulation: Sumitomo Electric + domestic aﬃliates2014 2015 2016 2014 2015 2016 2014 2015 2016

(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.
(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 inenergy saving

Reduction ofenergy cost

(Note 1)

(Note 1)

Reduction ofgreenhouse gas
emissions(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.

1,918 2,036 1,034

639

608

882

(Note 4) Change due to boundaries change: Emissions or amount of waste
in ﬁscal 2015 from the boundaries of collection newly added or
excluded in ﬁscal 2016 (no boundaries were newly added or
excluded in this ﬁscal year).
Change due to sales change: [Emissions or amount of waste inﬁscal 2015 from the boundaries of collection for ﬁscal 2016] x(Sales in ﬁscal 2016 / Sales in ﬁscal 2015 - 1)

Investment inresource saving
and recycling

Actual change: Calculated by subtraction

Waste
disposal cost

(Note 2)

Sale ofvaluables materials(Note 3)(Note 3)

Waste
reduction
10

Cost ofmanagement activities

210

61

1,080 1,037 1,175

89

104

1,049 1,097 1,049

Cost ofsocial activities

14

7

10

Cost of environmental
remediation

9

8

52

Glossary ＊L IME

61 CSR Report 2017

Life Cycle Impact Assessment Method Based on Endpoint Modeling (LIME) is a method forevaluating the impact of products and services on the environment.

127status on the check items set for each of the parts such as
liquid storage and pipes.
In Japan, we evaluated facilities of four sites in fiscal 2016.

We implement audits of overseas sites, as well assites in Japan, according to the environmental laws
in the countries and regions where they are locatedWe also started the evaluation of overseas sites in fiscal
2013 and evaluated one site in fiscal 2016. In the future, wewill conduct environmental audits that combine legal《 Audit Implementation Plan and Its Progress 》

compliance checks with evaluations on water quality.

In addition to examinations based on ISO 14001, the《 Check of the Progress in the
Activities of the Action ECO-21 Campaign 》

the efforts in the Action ECO-21 Campaign to ensure

We have set check items for environmental audits andcompliance with relevant laws and reduce environmental

evaluate the activities and progress.

impact. The first round of the audits of all manufacturing sites《 Conﬁrmation of Legal Compliance 》

in Japan was started in fiscal 2008 and completed in fiscal

Business Outline

with focus on compliance with environment-related laws andSumitomo Electric Group implements environmental audits

Basis for Management

Global Environmental Audits

In fiscal 2016, any violation of laws and regulations (cases

2011, and we have conducted the second round since fiscal

where guidance, recommendation or order to pay fine was2016.

Environment Department of Sumitomo Electric.

were also launched in fiscal 2010. As of the end of fiscal
2016, we have completed 45 of the 46 sites subject toaudits: We are now planning to audit the sites that newly

Governanceissued by the authority) was not reported to the Safety &Environmental audits of manufacturing sites outside Japanjoined the Group in fiscal 2017.

《 Evaluation of Facilities That May Affect Water Quality 》
In response to a revision of the Water Pollution Control Act inGroup's CSR Activities

2012, 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

Non-ﬁnancial items

0
900
750

3.3

2.8

5.3 7.2

4787 761 744
730 764(Note 4)

-5

GHG emissions(thousand tons-CO2e/year)

0

900

5

730

750

Reduction of 5% from the ﬁscal 2012 level in ﬁscal 2017 is
67

0

10

764

level, and have strived for it. We made various energy

600

saving eﬀorts in this ﬁscal year as well. These activities are

450
300

been rising steeply in recent years.

150
150

The knowledge learned through the activities is also2012 2013 2014 2015 2016 Target (Fiscal

year)

0

GHG emissions

2015

Emission reduction rate(from the ﬁscal 2012 level)

50
40
30

4.7

-9.4

Reduction
rate (%)

37.3

-10
-5
0
5
10
15

4

0

9.4

34.1

30.9 32.5 30.1

11.9

We set the reduction of 4% from the ﬁscal 2012 level as

50

the target for ﬁscal 2016. To reduce the amount of waste,
8.6

40
30

30.1

37.3

0

0

We will continue our commitment to concentration ofwaste liquid as a method to reduce the amount of waste.
2015

Waste reduction rate (from the ﬁscal 2012 level)

Change due Change due Actual 2016 (Fiscal
year)
to saleschangeto boundaries
changechangeISO 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 2017

Social Contribution

Cost of environmental organization,
ISO 14001 registration and maintenance, etc.

Environmental
Preservation

Amount of waste

year)

made in waste liquid treatment facilities with an aim torecover metal in waste liquid and reﬁne it for recycling.

102012 2013 2014 2015 2016 Target (Fiscal

we are promoting conversion of waste into valuable
materials. The main investment during this ﬁscal year was

20

10
0

(Note 4)
Amount of waste (excluding valuable materials)(thousand tons/year)

▲1.4

20

introduced into overseas Group companies.

Human Resources

Amount of waste(excluding valuable materials)(thousand tons/year)

Change due Change due Actual 2016 (Fiscal
year)
to saleschangeto boundaries
changechangeSupply Chain

also important for the reduction of energy cost, which has

300

0

set as the target. To achieve it, we aim to reduce energy
consumption per unit of sales by 20% from ﬁscal 2012

▲33

600

450

Strategy/opportunity and risk

Products & Services

Reduction
rate (%)

GHG emissions(thousand tons-CO2e/year)

Core
Category

Change factors in ﬁscal 2016 (in Japan)

Performance (in Japan)

62

Material Balance (Environmental Impacts)

I N PUTOUT PUT

Raw materials
Copper ※311 thousand tons

Iron

337 thousand tons

Aluminum

22 thousand tons

Resin

115 thousand tons

Chemical substances ＊ 16 thousand tons

Production and sales volume

Withinfacilities

Product shipments

Research &Development

Atmospheric emissions
CO2

EnergyElectricity

Shipment

45 million m3(converted into crude oil equivalent)

1,303 thousand tons

Scope 3

3,034 thousand tons

NOX ＊410 tons

SOX ＊53 tons

10,472 thousand m3

Wastes12 thousand kl

12,921 thousand m3

194 thousand tons

Scope 2

Wastewater

Resource
circulationRawmaterials

Water
Water

Scope １

Wastewater

7 thousand tons

City gas
Other fuels

Manufacture

2,215 million kWh

LPG

1,448 thousand tons

Other gases (converted into CO2) 49 thousand tons

Product design

Product packaging materials
67 thousand tons

458 thousand tons

EnergyGeneral wastes

15 thousand tons

Industrial wastes

63 thousand tons

Chemical substance emissions

Water

Into the air ＊57 tons

Into the water ＊3 tonsAs industrial waste ＊Transportation fuel(converted into crude oil equivalent)＊ 14 thousand kl

Logistics

CO2 emissions ＊148 tons

36 thousand tons●

Materials (copper, iron, aluminum and resin): Total quantityof the product materials managed on a weight basis (thoseused by a business unit in the amount of 100 tons or morein total)●

Chemical substances : Chemical Substances speciﬁed in the
PRTR Law●

Product packaging materials : Corrugated cardboard,paper, resin and wood●

NOx : Nitrogen oxides emitted from the use of gas andliquid fuels●Electricity : Purchased from electric power companies●

SO x : Sulfur oxides emitted from the use of liquid fuels●

Other fuels: Heavy oil, kerosene, gas oil and natural gas●●

Water : City water, industrial water and well water(groundwater)●

Transportation fuel : Gasoline, gas oil etc.

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 other substances generated
through business activities

Boundaries of data integration●

Product shipments: Total shipments of the productmaterials managed on a weight basis (those shipped by abusiness unit in the amount of 100 tons or more in total)●

CO 2 : CO2 emitted from the use of electricity, gas and fuels●

Greenhouse gases other than CO 2 : SF 6 , HFC, PFC andother greenhouse gases converted to CO2 equivalent●

Wastewater : Wastewater discharged from plant
production processes, and household wastewater●

General wastes : Non-industrial wastes (including paper, wood,ﬁbers and other trash) generated through business activities

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 boundary 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 (GHG) emissions, a representative environmental
indicator, the emissions from the boundaries of the environmental management of our Group, 1,497 thousand tons, account for the vast
majority of 1,819 thousand tons, which are estimated GHG emissions from the boundaries of consolidation for financial reporting in fiscal 2016.
In the meantime, out of the 247 consolidated subsidiaries excluding the 3 listed companies mentioned above , the environmental managementof our Group covers 147 companies in production units (45 in Japan, 33 in China, 34 in Asia (except China), 14 in the Americas and 21 inEurope and other in fiscal 2016). Our trial calculation indicates that environmental impact, such as GHG emissions, of the 147 companies is
estimated to occupy 99% of that of the 247 subsidiaries.

63 CSR Report 2017

Activities to Prevent Global Warming
Basis for Management

Reduction of Greenhouse Gas Emissions

Factor Analysis of Changes in Greenhouse Gas Emissions(in Japan and overseas)
Emissions converted to CO2 equivalent(thousand tons-CO2e/year)

Our CO2 emissions decreased in Japan but grew
overseas from the base year.
We will promote energy saving activities

1,600

The Sumitomo Electric Group sets the target of reducing GHG

1,400

7

1,430

an initiative to prevent global warming.

1,497

Actualchange

2016

▲74
1,200

We have conventionally positioned the promotion of energy
saving as a core target in our environmental activities and0

promoted it actively in our sites and divisions.

2015

Change due toboundaries
changeSince fiscal 2012, especially in response to skyrocketing
energy costs in Japan, we have enhanced our system forenergy saving efforts with the Energy Saving Office serving as(Fiscal year)(Note) Change due to boundaries change: Emissions in ﬁscal 2015 from the boundaries ofcollection newly added or excluded in ﬁscal 2016.
Change due to sales change: [Emissions in ﬁscal 2015 from the boundaries of collection forﬁscal 2016] x (Sales in ﬁscal 2016 / Sales in ﬁscal 2015 - 1)
Actual change: Calculated by subtraction

member from each division to encourage the divisions topromote energy saving activities in a more organized andvoluntary manner. With these efforts, improvement of energy
efficiency in our overseas companies is in progress while weare shifting our production facilities to overseas sites.

Greenhouse Gas Emissions from the Global Operations of
the Sumitomo Electric Group by Region(thousand tons-CO2e/year)800

We have prepared a handbook that introduces the issues tointernal training program using the handbook in Japan andoverseas. This program aims to provide relevant know-how
and enhance the sensibility of employees on energy saving

787

761 744

700

730

764

Group's CSR Activities

be considered in energy saving efforts and launched an

600
500
400

and thereby to encourage field workers to voluntarily make300

concerted efforts, such as reduction of standby power200

consumption and revision of the production conditions, to100lower unnecessary energy use.

0263 263 268 258 276

278 267 285 285 295

93 104107 99 96

48 47 52 57 65
China

Asia

Japan

AmericaCore
Category

Europe, etc.

As a result, while the production volume in the Group as a(except China)

whole increased, our GHG emissions in fiscal 2016 decreased

2012

2013

2014

2015

2016

in Japan but grew overseas from the fiscal 2012 level. The
fiscal 2012 level.

Reduction of Energy Consumption
▲1.9

2.7

Emissions converted toCO2 equivalent(thousand tons-CO2e/year)

1,469

1,400

-2
-1
0
1
2
3
4
5

0.9

1.9

1,600

Reduction ratio (%)

5.0
1,442

1,456

1,430

1,497

1,396

1,200

682

681

711

700

732

649

787

761

744

730

764

747

600
200

decline in sales despite an increase in production volume, ourenergy consumption per unit of sales demonstrated an
upward trend although our energy consumption per unit ofproduction is declining.
Energy Consumption and Energy Consumption per Unit of Sales(in Japan and overseas)

800
400

exchange rate fluctuations becomes larger. Due to a slight

Energy consumption per unit of sales(kl/100 million yen)

Energy consumption(TJ/year)

37

0

2012
Base

Overseas

2014
Result2015
Result2016
Result2017
TargetReduction ratio(Note) GHG emissions are calculated based on the Greenhouse Gas Emissions Accounting andReporting Manual Ver. 3.5 (2014) by the Japanese Ministry of the Environment and Ministryof Economy, Trade and Industry (except the emission factors, which are mentioned below).
Basic policy on the emission factors: ﬁxed emission factors are applied to the values for all
ﬁscal years presented in the graph.
CO2 emission factor for purchased electricity[Overseas] Emission factor in each country for 2011 mentioned in CO2 Emissions from
Fuel Combustion Highlights 2013 (2013) by IEA
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

29

30,00025,000

28

30

30

35
30

23,42023,82923,95823,707

24,390

2012
Base

2013
Result2014
Result2015
Result2016
Result25

20,00015,00010,0005,000
0In Japan and overseas operations

2017
Target(Fiscal year)

Energy consumption per unit of sales(Note) Energy consumption per unit of sales: Crude oil equivalent of energy consumption divided by sales

CSR Report 2017

Social Contribution[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

40

32(Fiscal year)

Environmental
Preservation

In Japan2013
ResultHuman Resources

1,000

As the ratio of overseas production increases, the impact ofSupply Chain0

Production efficiency has been improved

Products & Services

emissions in the whole Group increased by 1.9% from theGreenhouse Gas Emissions and Reduction Ratio(in Japan and overseas)

Governancethe organizer. We have appointed a new task committee

Change due tosales change

Business Outline

emissions by 5% from the fiscal 2012 level in fiscal 2017 as

134

64

conducted with divisions to promote the activities until remedial
measures were actually taken, and enhanced other initiatives byconducting the PDCA cycle to ensure improvement of the

Emission data for Scope 3
We provide data to CDP＊●

Measurement-based evaluation :We use ultrasonic wave or infrared based instruments todetermine the volume of steam and compressor air leaks. In
addition to judgment on whether there is a leak or not, expected
cost reduction effects are shown in a quantitative manner tofacilitate improvements. We also conduct measurement andanalysis of power consumption during holidays and at night, as
well as the diagnosis in overseas affiliates.

●

Adoption of relevant technologies and use of
external engineering companies :We are introducing common technologies such as theoperation of high-efficiency pumps and improvement of heatinsulation in steam pipes across the company. When special
technologies are required, we gain the cooperation of external
engineering companies for the introduction.

●

Cooperation in priority areas :Divisions and the Manufacturing Management & Engineering
Unit closely cooperate for improvement of overall efficiency
while giving priority to the divisions with a relatively large sharein energy consumption. In addition to tangible aspects such as
equipment, intangible aspects such as production engineering
are also considered in the improvement activities.

In ﬁscal 2014, we increased the number of the categories for
Scope 3 of CDP to publish our emission data, and we started
to receive independent assurance on Category 4: Upstream
transportation and distribution.
Greenhouse Gas Emissions in FY2016 (thousand tons-CO2e/year)
Scope １

194

Scope 2

1,303

Scope 3

3,034

Category

Description

Change in emissions

1

Purchased goods and services

2,117

2

Capital goods

Increased

529

Increased3

Fuel- and energy-related activities not
220
included in Scope 1 or Scope 2

Increased

4

Upstream transportation and distribution 36

No change

5

Waste generated in operations

29

Decreased

6

Business travel

32

Increased

7

Employee commuting

71

Increased(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
(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.
Meanwhile, Group companies and divisions set the target of
reducing energy consumption per unit of production by 4% perannum from the ﬁscal 2012 level and strive to meet it throughthe discovery of subjects for energy saving and promotion ofactivities in a planned manner. In ﬁscal 2016, while the target
was a reduction of 16% from the ﬁscal 2012 level, we reduced
energy consumption by 15.6%.
The number of subjects in the submitted ideas and cost
reduction eﬀect are presented below.

549

611

1,400
1,200

497

166

670
328

(subject/
year)

556

1,237 1,193

800

600
400

227

548

610

622

2010

2011

2012

716

871

400
0

363

0

2008

2009

Cost Reduction Eﬀect

2013

2014

We are working to make employees always aware of energy saving
We have assigned a member and a vice member of the
Workplace ECO Activity Promotion Committee in each workplacein the head offices, district offices and branch offices. The
committee members perform and promote the following 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 PCs and power-saving
OA devices on a preferential basis⑤ Using zone lighting during overtime hours

2015

Sumitomo Electric Version of
My family's Minister of the Environment - Eco Family

600
200

800

200

712

464

1,000

Energy Saving Activities in Offices

Energy Saving Activities in Households

Number of Subjects in the Submitted Ideas andCost Reduction Eﬀect by Fiscal Year(million yen/year)

We will continuously work to meet the target of reducing both
energy consumption per unit of sales and the absolute amountby 4% per annum in fiscal 2016 and beyond by using the PDCA
cycle to achieve the target of reduction of 20% from the fiscal
2012 level in fiscal 2017.

2016 (Fiscal year)

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, andproposed new ideas. In ﬁscal 2016, in addition to proposal ofideas, we engaged in cooperation in priority areas, which was

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 2017

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.

We launched energy saving training to encourage
the production ﬁeld to makeenergy saving efforts voluntarily

The Sumitomo Electric Group has actively conductedenergy saving diagnosis in plants in Japan and overseas
obtained results from the efforts. However, there was a
problem that some plants took no actions after
undergoing an energy saving diagnosis. We therefore

Energy Saving Handbook
with "Standard (Desirable)of Energy Saving" and"The Points to be checkedin Plant Patrol"(Japanese, English andChinese versions)

Business Outline

under the initiative of the Energy Saving Office, andBasis for Management

Power
SavingRT
REPORT

started an energy saving training program to encourage
plants to make energy saving efforts in a voluntarymanner in fiscal 2016. This training program uses an A5
size handbook "Energy Saving Handbook with Standard
andGovernance(Desirable) of Energy Saving

The Points to bechecked in Plant Patrol ("Energy Saving Handbook"),which summarizes the points for energy saving diagnosis
and contains photos and diagrams to make theexplanation easy to understand, as well as an appendix"Examples of calculating the effect of energy saving" toallow the staff to easily recognize the monetary value of

On-site training

Chinese, Vietnamese, Malay, Thai and Indonesian in May

roughly one-hour session is held including a Q&A session2017 to introduce it into overseas plants as well.

and the delivery of feedback by the lecturers.

The energy saving training program is provided to around

The main purpose of this training is to have participants

10 people from each plant and completed in half a day.

experience the joy of identifying points to be improved

After a one-hour classroom lecture, the participants visit afor energy saving. Participants sometimes find a point that

production field with Energy Saving Handbook and spend

even lecturers do not notice, which reminds the lecturers

about two hours to make a list of the points that can beof the effect of energy saving diagnosis conducted by the

improved for energy saving. Then, based on the list, a

staff who are familiar with the specific process.

Group's CSR Activities

the effects. We also translated the booklet into English,

Core
Category

We have provided the training program at 60 sites inJapan as well as 12 overseas sites mainly in China. As tothe points identified to be improved for energy saving in

Products & Services

the plants, the Energy Saving Office is now receiving
inquiries on specific methods for the improvement andrequests to support the production site. We are looking
forward to the effects to be accumulated in the future.
Classroom lecture(From left)

Supply Chain

Kanetsugu Kinugasa Assistant General Manager, Energy Saving Office, Safety & Environment Department
Yukinori Hashimoto Assistant General Manager, Safety & Environment Department
Nobuyuki Hirano Assistant General Manager, Energy Saving Office, Safety & Environment Department
Takayuki Mishima Manager, Energy Saving Office, Safety & Environment Department
Noriyuki Endo General Manager, Energy Saving Engineering Department,
Plant Engineering Division, Sumitomo Electric Technical Solutions, Inc.

Human Resources

Naoyuki Akakabe Assistant General Manager, Energy Saving Office, Safety & Environment Department
Ryuuichi Kishimoto Energy Saving Engineering Department, Plant Engineering Division,
Sumitomo Electric Technical Solutions, Inc.

Mineko Miyawaki Assistant Manager, Safety & Environment Department

C S R VO I C E

We received energy saving training

Environmental
Preservation

Hisashi Ueda (left) Environmental Promotion Group, Safety & Environment Department
Fumio Maegawa (right) Supervisor, Tsu Electronics Works, Manufacturing Department, Manufacturing Division, Electronics Group
Sumitomo Wiring Systems, Ltd.

Social Contribution

We received energy saving training at the electronics plant of Electronics Group. Throughthe training, we found that the utility rules were not strictly followed and visualization of
the equipment was insufficient in the plant and considered that it was necessary to take actions urgently. In theconventional energy saving diagnosis, our activities were accomplished when we improved the items indicated in the
diagnosis. However, this training developed our abilities to find such items by ourselves using Energy Saving Handbook andimprove them in a voluntary manner. Energy saving activities are not something to do by yourself or do just because you
are told to do so. We will widely share the recognition we learned from the training that improvements should be foundand made voluntarily with the involvement of all staff to make even more improvements.

※ The names of the departments and positions are those at the time of the interviews.

CSR Report 201766

Reduction of CO2 Emissions in Logistics
We reviewed the methods and routes oftransportation to reduce CO2 emissions
In fiscal 2016, per unit CO2 emissions from transportation in the
Sumitomo Electric Group in Japan were reduced by about 2.0%(note)from the previous fiscal year.
Sumitomo Electric reduced CO2 emissions in logistics due to reasons
including an increase in railroad transportation from the Itami Worksin response to the growth of orders for high-strength steel wires
from a customer in Kitakyushu by about 20% year-on-year, as well as
an increase in coastal transportation from the Osaka Works inrelation to a large export project of power cables.
In the meantime, Sumitomo Wiring Systems, Ltd. improved
transportation efficiency by devising the way of loading cargos
on trucks for delivery to customers in the Kanto Region to reduce
the number of trucks, and by establishing a relay point in
Kitakyushu for transportation to the Kyushu Region to replacesome transportations from plants with ferry transportation.
We will continue the group-wide efforts to reduce CO2 emissions
from transportation.
(Note) Per unit CO2 emissions in the Sumitomo Electric Group compared withthe previous ﬁscal year

Promotion of Modal Shift
Sumitomo Electric is active in promoting modal shift mainly in thecase of long-distance (500 km or longer) transportation. In fiscal
2016, mainly due to an increase in railroad transportation from
Itami to Kitakyushu, the modal shift rate increased by 0.8 points
from the fiscal 2015 level to raise the percentage of railroad andcoastal transportation in the total amount of transportation toapproximately 33%.

Modal Shift Rate※ of the Sumitomo Electric Group by Year
(Excluding Sumitomo Wiring Systems, Ltd.)
（％）
34.0

32.8

33.0
32.0
31.0

31.8

31.8

32.0

2013

2014

2015

30.4

30.0
0

2012

2016

(Fiscal year)(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 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 reduction rate is calculated based on the CO2 emissions.

Per Unit CO2 emissions by Year
(tons-CO2/million ton-km)

100.0

99.7

(tons-CO2/100 million yen)

98.6

97.9

4.50

96.2

95.3

95.0

3.95

90.0

4.00
3.50

3.77

85.0

3.52

3.47

2014

2015

3.00

3.35

0

0

2012

2013

2016

(Fiscal year)

Sumitomo Electric Group (Sumitomo Electric + 37 manufacturing companies
in Japan (excluding Sumitomo Wiring Systems, Ltd.))
Sumitomo Wiring Systems, Ltd.

CO2 Emissions from Transportation by
the Sumitomo Electric GroupIn light of the globalization of our business activities, we strive tocalculate data on CO 2 emissions concerning transportation fromJapan to the ports or airports in the destination countries fordelivery of products to overseas destinations, the supply of raw
materials and parts to overseas affiliates and other export activities.
At present, CO2 emissions from our export activities wereapproximately 1.4 times higher than those from our transportation
activities in Japan and accounted for roughly 58% of total CO 2
emissions from our transportation activities. About 84% of the emissions
from export activities were attributed to international air delivery.

CO2 Emissions from Transportation in the Sumitomo Electric Group in Fiscal 2016
ExportTransportation in Japan

29,841.0t- CO2（57.9%）

21,674.7 t- CO2（42.1%）
Truck
19,335.1 t- CO2（89.2%）■

International air
25,080.4t- CO2（84.0%）■

FY ２０１６
Annual CO2
emissions

51,515.7
t-CO2

Ocean vessel
4,760.6t- CO2（16.0%）■

Railroad
764.5t- CO2（3.5%）■

Vessel in Japan
1,551.0t- CO2（7.2%）■

Air in Japan
24.1t- CO2（0.1%）■(Note) Boundaries of data collection: Sumitomo Electric Group (excluding Sumitomo Wiring Systems)
CO2 emissions in Japan are calculated using the improved ton-kilometer method.
CO2 emissions from export activities are calculated using the conventional ton-kilometer method.
Based on the simple calculation tool for logistics CO2 emissions by Policy Research Institute for
Land, Infrastructure, Transport and Tourism (PRILIT)

67 CSR Report 2017

Adjustment of the Transport Lot Sizewith the Cooperation of a Customer
Sumitomo Electric sells copper single wires to SAN-EI Electronic
Industries CO., LTD. (SAN-EI Electronics) in Komoro, Nagano, anddelivers the products from the Osaka Works by truck.
Since the orders from SAN-EI Electronics were made in line with
its production plan, the order quantity fluctuated significantly andthe loading ratio of each truck was not very high.
To reduce CO2 emissions from transportation, we asked for thecooperation of SAN-EI Electronics to place orders in a volume
suitable for the maximum load capacity of a 15-ton truck andreceived willing consent. As a result, we lowered the number of
the trucks to deliver products to the company by approximately
8% (from 25 units to 23 units per month), and reduced CO 2
emissions by about 1 ton per month in fiscal 2016.

C S R VO I C E

We accepted the request for
the adjustment of the order quantity
Mr. Tadashi Yanagisawa
Manager of Material Procurement Section,
Magnet Wires Production Division , SAN-EI Electronic Industries CO., LTD.

We purchase copper single wires from Sumitomo Electric andprocess them into ultrafine magnet wires and coil products tosell the products to automobile, OA device and othermanufacturers. Our edgewise coil products are also
employed in eco-friendly cars such as hybrid and electricvehicles. We received a request from Sumitomo Electric toadjust the order quantity to a suitable size for the load
capacity of the truck in order to reduce CO2 emissions. While
the products we receive are diverse in terms of weight andpacking forms, we decided to give consent because our field
staff considered that the adjustment would not place muchburden on our production or order placement activities
although the stock would increase somewhat. While there
was some confusion immediately after the adjustment, ourpurchase activities are currently smooth. We are glad to hearthat our cooperation resulted in the reduction of two trucks
and 1 ton of CO 2 emissions in a month to contribute toenvironmental conservation.

Promotion of Resource Conservation and Recycling

We aim to manage waste in a proper manner

Waste Reduction Rate (Excluding Valuable Materials)
in JapanAmount of waste(excluding valuable materials)(thousand tons/year)

Reduction rate (%)

▲9.4

-10

《 Promotion of Zero Emissions 》-5

To help solve social problems such as shortage of landfill

00resources, it is necessary to avoid landfilling of industrial
waste without serious efforts and recycle waste to the extent
possible.
The Sumitomo Electric Group sets the zero emission rate as
the indicator for the efforts and works to meet the target of

5

4.7

50

9.4

10

11.9

15

40

37.3

34.1

32.5

30.9

30

30.1

Business Outline

sites and illegal waste dumping and to make effective use of

Basis for Management

Efforts to Achieve Zero Emissions andReduce the Amount of Waste (in Japan)

20

reducing the rate to 0.3% or less.
10

Amount of industrial waste+ Amount of general waste+ Amount of valuable materials

×100

0

2012
Base

2013

Amount of waste

2014

2015

2016

(Fiscal year)

Reduction rate from the ﬁscal 2012 level

GovernanceZero emission=
rate (%)

Amount of waste incinerated without heat recovery+ Amount of landﬁll waste(Note) From the Action ECO-21 (Phase Ⅵ) Campaign launched in ﬁscal 2015, all valuable materials,
part of which were not included in the denominator until ﬁscal 2014 (the materials thatwere already treated as valuables in ﬁscal 2000), are included in the denominator.

Amount of Waste by Type in Fiscal 2016 (in Japan)
Amount of waste(thousand tons/year)

0.05

Zero emission rate (%)

2

0.04

0.03

0.10

0.03

1

Waste landﬁlled or incinerated without heat recovery
Total : 28 tons/year

0
90
80

82.2

81.4

48.4

48.8

30.9

32.5

Waste glass andceramics

70
60
50

48.0

47.0

Sludge217Others

30

34.1

10

30.0

37.3

0.0

0.0

0.0

0.1

0.0

2012

2013

2014

2015

2016

Valuable materials
Zero emission rate

Recycled waste(Fiscal year)

Incineration and landﬁll wastes

Heat recovery

6,879 tons/year(Note) The amounts of valuable materials for ﬁscal 2015 have been corrected for the
improvement of accuracy.

The Sumitomo Electric Group is also committed to reducing

Material recycling

30,430 tons/year

Amount of
waste

85,363
tons/year

Valuable materials

48,026 tons/year

the amount of industrial waste generated in its facilities byimproving production efficiency.

Supply Chain《 Reduction of the Amount of Waste 》

Products & Services

0

7

Waste paper

48.0

40

20

11

Waste plastics

85.4
77.1

Core
Category

79.3

Group's CSR Activities

Amount of Waste and Zero Emission Rate (in Japan)

To reduce the amount of waste, we promote conversion of
the waste into valuable materials through separation andreview of the process that caused defects in production sites,
which are fundamental activities for manufacturing, as well as
reuse of the waste generated by the company and reductionof waste volume.
increase in the waste liquid due to the insufficient capacity of

38,756

Waste metal

10,714

Waste acid

7,200

Sludgethe waste liquid treatment equipment. We will continue toWaste alkali

7,009

make efforts with focus on the reduction of sludge generated

Waste plastics

6,645

through waste liquid treatment.

Waste paper

3,163

Waste oil

2,340

Others869

Social Contribution

Wood waste
Waste glass andceramics

Environmental
Preservation

In fiscal 2016, we failed to achieve the target with an

Amount of recycled waste Total : 78,456 tons/year

Human Resources

search of uses, and also focus on reduction of defects and

541
1,219

CSR Report 201768

Reduction of the Waste to Be
Incinerated Without Heat Recovery
or Landfilled (Overseas)

Water Use Reduction
We monitor the total amount of water withdrawal
As the release of the Natural Capital Protocol＊ in fiscal 2016

Waste management outside of Japan

indicates, the importance of water as a natural resource is

While the situation of landfill sites overseas is different fromgrowing. The Sumitomo Electric Group added the reductionthat in Japan, we work to refrain from landfilling industrialof water consumption to its action items in fiscal 2008 andwaste without serious efforts and recycle waste to the extent

has actively worked for it since then. Our water consumption

possible through separation of waste and other efforts toincreased year-on-year in fiscal 2016 partly due to the growthmaintain proper waste management.

of production in overseas bases where a large volume of

In consideration of the fact that we also operate in countries

water is used. In terms of water withdrawal by source, we

where the environment for recycling has not been developed,

take 87% of water from city water and 13% fromwe revised the target zero emission rate for overseas Groupgroundwater. Effluent is discharged into sewer systems bycompanies to 9% or less from fiscal 2016.

54% of the bases, rivers by 26% (which include the basesthat discharge effluent into both sewer systems and rivers(10%)) or unknown destinations by 20%.

Amount of Waste and Zero Emission Rate (Overseas)
Zero emission rate (%)

11.7

10.5

10.1

8.7

Amount of waste(thousand tons/year)

76.5

leakage in our facilities, which motivated us to promote

10

efforts to address and manage water leakage in a steady

0

93.4

90
80

8.9

76.2

81.8

86.2

43.1

50

41.1

manner. We are working to reduce water withdrawal throughsuch initiatives as the reuse of effluent that used to bedischarged.
In the meantime, we have evaluated water risks in the

70
60

In the course of the reduction activities, we found water

20

44.4

46.4

52.6

manufacturing sites of our Group and found that two of thecountries where our manufacturing sites are located havehigh risks.

40
30
20

25.4

26.2

29.1

32.3

32.4

10
0

8.1

8.9

8.3

7.5

8.3

2012

2013

2014

2015

2016 (Fiscal year)

Valuable materials

Water Withdrawal and Reduction Rate per Unit of Sales(in Japan and Overseas)
Reduction rate perunit of sales (%)

0

0
5
10
15
20
25

Recycled waste

Incineration and landﬁll wastes
Zero emission rate

Water withdrawal(thousand m3/year)

17.3

18.2

18,00023.2

24.0

16,00014,00012,00012,172

11,835

12,381

12,665

12,921

5,957

5,757

6,466

6,764

6,955

6,215

6,078

5,915

5,901

5,966

2012
Base

2013

2014

2015

2016

10,000
8,000
6,000
4,000
2,000
0

Consumption in Japan(Fiscal year)

Consumption in other countries

Reduction rate per unit of sales(Note) Water withdrawal is calculated as the sum of the withdrawal of city water,industrial water and groundwater.

Glossary ＊Natural Capital Protocol

69 CSR Report 2017

The Natural Capital Protocol was released by Natural Capital Coalition in July 2016 as a global common framework designed for natural
resource accounting by companies. It is based on an idea that proper evaluation of natural capital including water, soil, air, fauna and ﬂora andminerals to incorporate it into business management will improve the sustainability of corporate management and the stability of people's lives.

Reduction of the Release of Harmful Chemical Substances

The whole Group, including overseas affiliates,
is submitting reports in accordance with the applicable laws
Sumitomo Electric and its affiliates in Japan, using the chemicalmeasure the amount of PRTR substances treated per month,and calculate the amount of these substances released andtransferred in order to report annually in accordance with thelaw. A total of 44 sites of Sumitomo Electric's Osaka andYokohama Works and 27 Group companies submitted such

We have established an original system to unify
the management of chemical substances
The Sumitomo Electric Group established a chemical
management system, and started the management of
poisonous and deleterious substances and PRTR-designatedsubstances in Sumitomo Electric's three Works in Osaka, 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, domestic affiliates outside the three Works also

and transfer of PRTR-designated substances in Japan were 51

launched the operation of this system in sequence, whichtons and 140 tons, respectively.

enabled the search of the companies using poisonous anddeleterious substances and safety data sheets (SDS)

Release and Transfer of Chemical Substances
Speciﬁed in the PRTR Law by Yearconcerning all poisonous and deleterious substances used inaffiliates in Japan.

Release and Transfer (tons)

We will continue our efforts to enhance the management of

200

169
150
100

143

134
95

81

63

66

59

53

51

2012

2013

2014

2015

2016 (Fiscal year)

Soil and Groundwater Remediation

0

2010

Release2011

Transfer

・The amounts are calculated in accordance with PRTR Release Estimation Methods
Manual, version 4.1 (2011) by the Ministry of the Environment and the Ministry of
Economy Trade and Industry of Japan.

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
through our surveys conducted thus far, we are continuing soil
and groundwater remediation by soil replacement, groundwater
pumping and soil gas absorption. We also conduct groundwater
monitoring on a regular basis, and have confirmed that theCore
Category

Reduction of the Release of Chemical
Substances Specified in the PRTR Law

pollution has not spread outside the sites.

We are committed to reducing the release ofchemical substances specified in the PRTR Law

The aluminum alloy manufacturing facility and its exhaust gas

Action ECO-21 (Phase Ⅵ) Campaign since fiscal 2015. In fiscal

purification facility at Sumitomo Electric Toyama Co., Ltd. are2016, we made efforts to meet the target of reducing the

subject to the Law Concerning Special Measures against

release by 4% from the fiscal 2012 level.

Dioxins. We have ensured that emissions from these facilities

We worked to cut the atmospheric release in the sites thatremain within regulated standards.

release 1 ton or more to the air in a year to reduce the annual

At present, the Sumitomo Electric Group produces norelease by 19.7% from the fiscal 2012 level to 51.4 tons in

products using asbestos.

fiscal 2016, which met the above-mentioned target.

ReleaseInto airInto waterTransfer

Into soil

Into landﬁll

Total release

By sewage

By disposal

Total transfer

Total
amount

0.0

0.0

0.0

18.0

0.0

6.9

6.9

24.9

5.5

0.0

0.0

0.0

5.5

0.0

14.6

14.6

20.1

Dichlorobenzene

5.6

0.0

0.0

0.0

5.6

0.0

14.0

14.0

19.6

Nickel compounds

0.0

0.2

0.0

0.0

0.2

0.0

18.9

18.9

19.1

Lead

0.0

0.0

0.0

0.0

0.0

0.0

14.0

14.0

14.0

Cresol

3.1

0.0

0.0

0.0

3.1

0.0

10.6

10.6

13.7

Xylene

2.8

0.0

0.0

0.0

2.8

0.0

5.6

5.6

8.4

Copper salts(water-soluble, except complex salts)

0.0

0.1

0.0

0.0

0.1

0.1

8.1

8.2

8.3

Formaldehyde

0.0

0.0

0.0

0.0

0.0

0.0

7.1

7.1

7.1

Boron compounds

0.0

0.0

0.0

0.0

0.0

0.0

6.7

6.7

6.7

34 other substances

15.3

0.8

0.0

0.0

16.1

0.6

33.1

33.7

49.8

Total

50.3

1.1

0.0

0.0

51.4

0.7

139.6

140.3

191.7
(Unit: tons)

Chemical substanceDioxins

ReleaseTransfer

Into airInto water

Into soil

Into landﬁll

Total release

By sewage

By disposal

Total transfer

0

0

0

0

0

0

2

2

(Note) Boundary of data collection: Sumitomo Electric + PRTR obligatory companies among its aﬃliates in Japan

Total
amount2(Unit: mg-TEQ)

Social Contribution

18.0

PhenolEnvironmental
Preservation

TolueneHuman Resources

Release and Transfer of Chemical Substances Speciﬁed in the PRTR Law

Supply Chain

substances specified in the PRTR Law as an initiative of the

Products & Services

Measures against Dioxins and Asbestos

We have been committed to reducing the release of chemical

Chemical substanceGroup's CSR Activities

50

100

chemical substances used in the Group.

140

131

119

Governancereports for ﬁscal 2016. Sumitomo Electric Group's total release

Business Outline

substance management system developed by the Company,

Chemical Substance Management System

Basis for Management

Release and Transfer of Chemical
Substances Specified in the PRTR Law＊

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 201770

Expansion of Environmentally Conscious Products
Expansion of Environmentally Conscious Products
We are actively promoting assessment anddevelopment of environmentally conscious products
Along with the reduction of environmental impact from ourbusiness activities, Sumitomo Electric is striving to increase
environmentally conscious products as an initiative stated its
environmental policy.
Our products are assessed to determine their levels of socialand environmental contribution and classified into, forexample, 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.

By the end of fiscal 2016, a total of 256 items have beenregistered as Eco-products. The sales ratio in fiscal 2016
was 59%.

《 Anti-Global Warming Products 》
In this system, we register the Eco products that especiallycontribute to the reduction of CO2 emissions in the
production stage or when they are used by customers, andcalculate the reduction effect.
The products contributed to the reduction of CO2 emissions
by a total of 114 thousand tons in fiscal 2016.
Percentage of Eco-Products in Sales and Contribution to
the Reduction of CO2 Emissions
Percentage of Eco-products in sales (%)

60《 Eco Mind Products 》

53

50

We perform environmental assessment of products when40

developing 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 Mind
products in the Sumitomo Electric Group.

40

41

59

Contribution toemission reduction(thousand tonsCO2/year)

114

120

44

110
100
90

78

10
0

57

59

80
70

63

60
50

By the end of fiscal 2016, a total of 923 items have been40

registered as Eco Mind products.

30
20《 Eco-Products (Eco Symbol Program) 》

10
0Among 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.

Eco-Products
REPORT

2013

2014

2015

2016

(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.

Porous Metal "Celmet™" is an Eco-product that
contributes to reducing environmental impact ofdevelopment and production activities
Junichi Nishimura (left)
Manager of Electronic Materials
Engineering Section,
Engineering Department

Ichirou Oyama (right)
Section Chief of South
Celmet Section andNorth Celmet Section,
Electronic Material Plant,
Manufacturing Division
Sumitomo Electric Toyama Co., Ltd.

Widely used in products that are essential for life such asbatteries, air-heating equipment and air conditioners, ourCelmet™ is a porous metal material with a three-dimensionalmesh structure and maximum porosity of 98%. Demand forthis product as an electrode material for batteries in hybridcars is currently increasing with a growing awareness of theenvironment. Our unique special electroplating and thermal
treatment are applied to the product to have high porosity,
high conductivity and high strength at the same time, andthe batteries using it can have a larger capacity and longer
life. In response to the rapid expansion of the hybrid carmarket, we constructed new plants in 2007 and 2010 toincrease the production of Celmet™. While we did not havemuch time, we made intensive efforts to take actions incooperation with other divisions including quality assurance
activities, the establishment of an inspection system andtraining of the operators. As a result, we were able to build

71 CSR Report 20172012

a foundation for the system to produce more products
safely while maintaining high quality.
We have also been committed to alleviating theenvironmental impact in the production process. The
amount of nickel, a rare resource, used in the product was
reduced by approximately 22% per unit area from the 2010
level while per unit energy consumption in the electroplatingprocess was lowered by approximately 16% to help saveresources and reduce the weight. In addition, while waste
plating solution was conventionally treated as industrial
waste by an external waste disposer, we have established aprocess to recover nickel from it as metal using existing
equipment in the plant.
We are now working in collaboration with Energy andElectronics Materials Laboratory to develop new Celmet™
that can be also used in next-generation batteries. We willcontinue to endeavor to reduce the environmental impact inthe development and production activities to contribute to
the conservationof the global
environment.

Celmet™

Examples of Eco-Products
Contributing to theimprovement of fueleﬃciency of cars bytrimming the weightContributing toresource saving byextending theservice life

CELMET®
(porous metal)

GaN HEMTLightweight wire
harness

Cemented carbide tools Sintered products
Sumitomo Electric Sinteredwith longer service life

Sumitomo Wiring Systems, Ltd.

Sumitomo Electric Hardmetal Corp. Alloy, Ltd.

Sumitomo Electric Toyama Co., Ltd.

The contribution is calculated
by estimating the reduction of
CO 2 emissions achieved at abase station in accordance withthe criteria set by Sumitomo
Electric.

The contribution is calculated
by estimating the amount of
CO2 emissions reduced by
improvement of fuel eﬃciency ofa car achieved by reducing theweight in accordance with thecriteria set by Sumitomo
Electric.

The contribution is calculated
by estimating the amount of theresources saved and CO2
emissions reduced from theproduction in accordance withthe criteria set by Sumitomo
Electric.

The contribution is calculated byestimating the amount of CO 2
emissions reduced in the
production of the processedmaterials and in the use of oilpumps in accordance with thecriteria set by Sumitomo Electric.

Basic Approach
The Sumitomo Electric Group considers the environment in its global business activities as a whole, ranging from procurement of
raw materials to design and manufacturing of products, and through the development of sophisticated products while alsoGroup's CSR Activities

Activities to Conserve Biodiversity

GovernanceThe contribution is calculated
by estimating CO 2 emissions
reduced with a hybrid car inaccordance with the criteria set
by Sumitomo Electric.

Sumitomo Electric Device
Innovations, Inc.

Business Outline

Contributing to energy
saving in base stations withcompound semiconductor
power amplifying elements

Basis for Management

Contributing to theimprovement of
productivity of processedmaterials and fueleﬃciency of automobiles

Contributing to theimprovement of fueleﬃciency of hybrid cars aselectrodes of secondary
batteries

promoting sustainability-conscious initiatives to protect the ecosystem.

typhoons, outbreaks of crown-of-thorns starﬁsh, which are a

Okiden Kaihatsu Company, Inc., a group member ofnatural predator of corals, breaching due to rising sea

Okinawa Electric Power Company, Inc. (OEPC), in Junetemperatures caused by global warming and other reasons2016. This initiative was taken after we received an orderand impacts of human activities such as sediment runoﬀ andfrom OEPC to lay a submarine cable between the main landwastewater discharge.

of Okinawa and Tokashiki Island (Kerama Line No. 1) as a

To conserve coral reefs, it is important to take fundamental

joint venture. The cable is 30.8 km long, which is the longest

countermeasures that remove major causes of theircable in Japan for the 22-kV transmission voltage class.

destruction and wait for natural recovery. We hope that the

A coral reef grows in a marine area neighboring a tropicalcoral planting helps conserve the ecosystem of coral reefs

ocean. Habitats of coral reefs in Japan include the Ryukyu

and preserve the biodiversity of the marine area.

marine creatures as food, the mucus produced by corals
also serves as an important nutritional source for organisms

Webaround coral reefs. Thus, coral reefs underpin the diversity ofthe ecosystem.

Human Resources

Chain and Ogasawara Islands. While corals are eaten by

Supply Chain

Habitats of coral reefs on the earth are threatened by heavy

Minatogawa, Urasoe City, Okinawa in cooperation with

Products & Services

Sumitomo Electric planted 286 corals in the sea nearCore
Category

We planted corals in the sea of Okinawa to help conserve biodiversity in the marine area

Reports on the planted corals on the website of
Okiden Kaihatsu Company, Inc.

http://www.okidenkaihatsu.com/search/

Environmental
Preservation

Coral planting

Social Contribution

Submarine cable laying

A coral that was 4.3 cm wide when planted
a year ago has now grown to 6.7 cm wide

CSR Report 201772

■

CSR Core Category

SocialContribution■

We have had and continue to havewarm communication that meetthe expectation of local people
Local community paper "Kakehashi"
The Itami Works, which is located in theresidential area, places high priority on harmonious relations with the local
community and looks for various communication with them. We hold not
only the Inari Festival in spring to commemorate our company's
establishment, but also the Greenery-Floral Festival, which reached the 10thin autumn of 2016. Every year, the Greenery-Floral Festival gathers morethan 1,000 people, including about 600 local residents, our employees, andtheir family. In the festival for 2016, we newly organized a handwork
workshop in addition to a potted plant competition, potato digging and amobile zoo. We saw many children smiling. In addition to holding these
festivals, we hold sports classes and Athletics Festa,
and oﬀer our gyms for a regional volleyballmatch, to have communication withthe local community in various
forms. This year, we concluded
an agreement to support
Para-sports with Hyogo
Prefecture. These initiatives
are communicated toneighborhood associations
through "Kakehashi," ourlocal community paper. The
19th issue of Kakehashi waspublished in May 2017. For
the distribution of the papers,
we get cooperation from local
volunteers.

CSR Priority Theme

Contribution through Our Business
Locations and Foundation
We will promote long-term social
contribution in local communities evenmore and in a wider range of ﬁelds
The business activities of the Sumitomo Electric Group
cover a vast range of technologies, markets andbusiness domains, which involve various stakeholders.
In addition to social contribution through businessactivities, we will continue to make long-term social
contribution in a wide variety of ﬁelds in considerationof the following themes.

◉ Develop social contribution activities thatmeet local needs◉ Establish partnerships with community-basedorganizations◉ Continue long-term social contribution
initiatives

Tatsuya Shiraga HR Group Yutaka Nakatsubo Administration Group Itami WorksSocial Contribution
Basic Policies on Social Contributions

focus on the establishment of the SEI Group CSR Foundation as

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.

learning activities and human resource development, as well as

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.
● 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.

a vehicle to contribute to encouragement of research andon promotion of activities to contribute to local communities
and support of volunteer activities and donations by employees.

Activities of the SEI Group CSR Foundation,a Public Interest Incorporated Foundation
The SEI Group CSR Foundation is a public incorporated
foundation established for the purposes of developing
human resources and promoting academic activities
In fiscal 2016, the SEI Group CSR Foundation received
contributions of a little over 160,860 thousand yen in total
from Sumitomo Electric (with the whole amount, including alittle over 860 thousand yen donated through the cafeteriaplan, appropriated for operation) and (1) donated 87 million
yen in total to university courses, (2) supplied subsidies of 37.9
million yen in total to academic and research activities, and (3)provided scholarships of approximately 36.9 million yen in total
for 33 Japanese students and 18 foreign students learning inJapan and 90 local students studying at overseas universities.

Under the Basic Policies, we are committed to the social

In the program to make donations to university courses, we

contribution activities suitable for the Sumitomo Electric Group,

provided monetary support for two new courses along with thewhich is aiming to be a Glorious Excellent Company, withsix courses continued from the previous ﬁscal year.

Glossary ＊Accumulated paid holidays

73 CSR Report 2017

This system allows employees to accumulate paid holidays that will expire if not used, up to 10 days per
year (maximum accumulation 50 days in total). Employees may use these paid holidays for the reasonsspeciﬁed by the company rules including sick leave, childcare and nursing of sick family members.

●Endowed lab. Innovation Management Science at Kyoto University●

Research course on tsunami marine hazards at Kobe University●

Data Entrepreneur Program (IT innovation human resource
development programs for data science and new business)at the University of Electro-Communications●

Hands-on training program for the development of young
entrepreneurs at the University of Tokyo●

Elucidation of molecular mechanisms responsible forpathophysiology of diseases and clinical application by analysis ofendoplasmic reticulum microfragments. at Hiroshima University●

Basic glycobiological research for elucidating the pathologicalmechanism and its clinical application" at Hokkaido University (new)●Laboratory for Water, Food and Health Risk in Asia at
Yamagata University (new)WebGroup CSR Foundation page of our website
http://www.sei-group-csr.or.jp/e/index.html

I hope that more young Thai people
have experience in Japan
Ms. Pakpilai Sambuntiang
3rd-year student, Industrial Engineering Course,
Faculty of Engineering, Thai-Nichi Institute of Technology

Collaboration with NPOs
We are committed to a program aimed at contributing
to society and helping employees manage their health
We have promoted TABLE FOR TWO, a program＊ to contributeto society and support health management of our employees atour cafeterias since October 2011. Part of the proceeds isdonated to help provide school meals in developing countries. In
addition, we develop activities to donate profit on sale of PET
bottle caps, used books and CDs as prices for vaccines to beprovided to children across the world through Japan Committee,
Vaccines for the World's Children, an authorized NPO.

Social Contribution through Donations
We are making social contribution through donations
from a global perspective
In fiscal 2016, we made donations in various areas including
schools and education, industrial and academic development,
R&D, art and culture, welfare, local development, environmental
conservation and sports. For example, we gave financial
support to symphony orchestras and opera performance as partof our efforts to assist art and cultural activities, as well as
important social activities such as environmental conservation
by nature conservation funds and other organizations.
We also collected matching gifts＊ from employees to make adonation to the Japan Committee for UNICEF, Japanese Red
Cross Society, World Wide Fund for Nature (WWF) Japan, etc.
In addition, we donated relief money for the victims of the
Kumamoto Earthquake through the Japanese Red Cross Society.
We thus developed a wide range of social contribution activities.

Amount of Donations by Category (Sumitomo Electric alone)
Other

Total

160,000,000 yen

111,069,924 yen

271,069,924 yen

Other 4,698,738 yen

Environmental conservation
1,000,000 yen

Sports, arts andculture26,610,000 yen

111,069,924
yen

Welfare projects
13,677,911 yen
Schools and education
26,125,275 yen

Environmental
Preservation

Amount of Donations by Year(thousand yen)

1,000,000

924,560

800,000

809,526

Human Resources

Industrial and academic
development, researchand development
31,086,000 yen

Local development
7,872,000 yen

Supply Chain

The SEI Group CSR Foundation

Products & Services

749,738

600,000
400,000
200,000

500,000

500,000

500,000

2011

2012

2013

216,582 245,042 271,069

0

2014

2015

2016 (Fiscal year)

Accumulated endowment in the SEI Group CSR Foundation

Social Contribution

Glossary ＊TABLE FOR TWO (TFT) program※ The number of users of the system is shown in the table of
Number of Users of the Employee Support Programs in P54.

Core
Category

I am Pakpilai Sambuntiang, a third-year student of the Faculty ofEngineering at Thai-Nichi Institute of Technology (TNI). While myfather used to engage in the delivery of furniture, he cannot work
now but only stay home after suffering a cerebral hemorrhage andmy mother and I care for him. He can manage to walk
independently but my mother works as a housekeeper to make aliving. I am their only child and our house is located in SamutPrakan Province.
I received an SEI Group scholarship in addition to a student loan of
the government for studying at TNI. Thanks to the scholarship, I can
pay the tuition fee and have prospects to graduate.
While I also passed exams to enter other universities, I selected TNI
based on the proximity to our house because I need to care for myfather. At TNI, students can study Japanese, as well as special
subjects, which was another reason I preferred TNI as I believe it isnecessary to learn languages other than English.
There are many Japanese companies in the area where I live and I
have heard from neighbors that they treat workers well, so I would
like to work for a Japanese company after graduation. My favorite
subjects are planning management and total quality management. I
like to make a production plan and manage it, so I assume that I
am suitable for working at Japanese factories. I plan to earn therequired number of credits in the coming summer session in April
and May, so I am scheduled to graduate after three and a half yearsof enrollment once I complete the four-month internship provided
jointly by Japanese companies and the university.
Last year, I had an opportunity to receive support to have aweek-long study tour to Japan. I visited Japanese companies anduniversities to have many inspirations that I could not have inThailand. In particular, I witnessed efforts to reduce environmental
impact, attitude to prepare for disasters and people trying toestablish and maintain a social order willingly without being forced
to do so, and the tour changed me dramatically. I hope that as
many young Thai people, such as my juniors, as possible haveopportunities to experience Japan. Such experience would broaden
their horizon and enrich their lives. I expect that more support isgiven for such tours under the leadership of Japan.
I would like to thank the Sumitomo Electric Group for its social
contribution activities that gave me an opportunity to further
increase my interest in Japan. I hope that many more young Thai
people have some sort of support, draw inspirations from Japanand develop a multifaceted interest in Japan in the future.

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.

Group's CSR Activities

C S R VO I C E

We support volunteer activities by
employees with various systems

GovernanceFor the program to support academic and research activities,
we received 168 applications. Out of them, we have selected
31 research programs including basic science research thatneeds research funds and exploratory study by young
researchers, and offered subsidies to them.
Details on the program are introduced in the SEI Group CSRFoundation page of our website.

Volunteer Activities

Business Outline

Implementation of a problem-solution oriented machineengineering education to develop human resources for
manufacturing practice in the next generation at Osaka University

Basis for Management●(Note) We completed the accumulation of 2 billion yen of endowment of the fund, which was
the initial target, in 2013 and have donated fund for operation only since ﬁscal 2014.

In this program, a low-calorie, well-balanced healthy menu is oﬀered daily at the company
cafeterias, etc. and 20 yen is donated from the sale of each meal to help provide school
meals to children in developing countries via TABLE FOR TWO International, an NPO.

＊Matching gift system
The company concurrently donates an amountequal to the donation made by an employee inthis system.

CSR Report 201774

Contributions
to LocalCommunities

Based on the principle of Harmony with the International Community
munity set forth in the Sumitomo Electric GroupG
hich has presence in about 40 countries aro
Charter of Corporate Behavior, the Sumitomo Electric Group, whicharoundy and society while respecting the culture andthe world, aims to contribute to development of local economy
cial contribution through business activities
customs of every region and country. To this end, along with social
activities, weare committed to various activities to support local communities and build harmonious relations with them.

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.
The expenditure for our corporate philanthropic activities was 658,410,000 yen.
※The amount is calculated based on the criteria mentioned in Attachment 2 "Examples of conversion into monetary
value concerning the giving access to facilities and participation and dispatch of personnel" of the Survey on
Corporate Philanthropic Activities in Fiscal 2016 by Keidanren (Japan Business Federation).

Local cleaning activities(Tokyo Head Oﬃce of Sumitomo Electric)＊1

Promoting community support activities andexchange with local communities● Local cleaning activities, promotion of greening,

environmental conservation activities, etc.
Sumitomo Electric: Cleanup of the area around each of its business sites ＊1
Cleanup activities are performed in 29 of the 55 companies including
the company mentioned above.
●● Supporting local disaster-prevention and safety activities

AED training session attended
by local residents as well ＊2

Yokohama Works of Sumitomo Electric: AED training session attended by
local residents as well (August)＊2
Performed in 20 of the 555 companies including the company mentioned above.
●● Opening corporate facilities (sports grounds, gyms, etc.) to the public●

Performed in 11 of the 55 companies including Sumitomo Wiring Systems, Ltd.

● Inviting local residents and students(from elementary, junior high and high schools) to plant tours
Osaka Works of Sumitomo Electric: 160 local elementary school students in May＊3
Performed in 8 of the 55 companies including
the company mentioned above.
●● Opening company sites to the public to organize events

Plant tourr for elementary school students ＊3

Itami Works of Sumitomo Electric: Organized Greenery-Floral Festival in October＊4
Performed in 5 of the 55 companies including the company mentioned above.
●● Publishing local community magazines

Osaka Works of Sumitomo Electric in July 2016 and January 2017,
Itami Works in May and December 2016 and Yokohama Works in May and November 2016

Contributing to sports and cultural activities● Contributing to sports activities

Sumitomo Electric: Sponsoring the 72st Lake Biwa Mainichi Marathon in March 2017

Invitation of local residents to
the Greenery-Floral Festival ＊4

In Itami Works, jointly organizing athletic practice sessions forelementary school and junior high school students in Itami City
(21 sessions a year)
Participation in the Osaka Marathon as water station volunteersin October＊5●

Performed in 15 of the 55 companies including the company mentioned above.

● Contributing to arts and cultural activities

Sumitomo Electric Technical Solutions, Inc.: Participation in Yokohama City Sakae
Ward lyceum (art and culture)●

Performed in 6 of the 55 companies including the company mentioned above.
Participation in the Osaka Marathon as
water station volunteers ＊5

Supporting education and training● Offering hands-on training programs,

off-campus classes and other support to students and teachers
Sumitomo Electric: Joint effort with the University of Tsukuba to support the careerdevelopment of young human resources with a doctorate degree ＊6●

Performed in 21 of the 55 companies including the company mentioned above.

● Holding on-site seminars

Nissin Electric Co., Ltd.: Sending lecturers to the Future Forum for Female High School Students
organized by Kyoto Prefecture●

Performed in 5 of the 55 companies including the company mentioned above.

75 CSR Report 2017

Support of the career development of young humanresources with doctorate degree ＊6

Program toMake Donations
to University
Courses

Hands-on training program for the development of young entrepreneurs at the University of Tokyo
Basis for ManagementBas

We aim to develop entrepreneurs
who will change the future of JapanThe SEI Group CSR Foundation makes donations to
excellent university courses that contribute to social

University of Tokyo to develop young entrepreneurs

Office of Innovation and Entrepreneurship,
Division of University Corporate Relations,the University of Tokyothrough a practical approach. The activities are

Professor

Mr. Taketo Sugawara

Katsuya Hasegawa

Assistant Professor

Division of University Corporate Relations of theintroduced below.

Project Professor

The University of Tokyo has been committed to

We have received support from the SEI Group CSR

entrepreneurship education as an advanced form ofFoundation to further expand this project since 2015 and theindustry-university cooperation. With an aim to nurture more

support is used to send personnel overseas, for example. In

startup companies in Japan, we launched a university-wide

Asia, we have a student exchange program with Peking

entrepreneurship education program called Entrepreneur

University. We also send student project teams and start-ups

Dojo in 2005. In order to commercialize many research

related to the University of Tokyo to the trade show at Southoutcomes and technologies that have been developed in the

by Southwest (SXSW), a conference in the United States. At

university, you need entrepreneurs to run the business. The

this year's conference, a team from our university achieved

Entrepreneur Dojo program provides on-the-job training

the brilliant feat of winning the Interactive Innovation Awards

aimed at stimulating student's entrepreneurial mindset andin the student innovation category. The awards are given to

making them aware of the career option to become an

innovative technologies and services and it was the first timeentrepreneur which is still not common in Japan. The

that a team from Japan won one of them.

Group's CSR Activities◆ The project has begun to expand globally

Governance◆ "Entrepreneur Dojo" was launched in 2005

Business Outline

development. One of them is a program of the

program is intended for undergraduate and postgraduate
Core
Category

students, as well as postdoctoral researchers, who haveideas and technical skills to potentially create a new businessthat can solve various problems in the society. The

Products & Services

participants in the program form teams and receive practicaltraining through activities including the development ofbusiness plans and business plan competition.

◆ We will increase students who can starta business with their own technologies
The Entrepreneur Dojo program gives practical instruction to
students so that they can commercialize products with an■ Startup support by the Division ofeye on the global market from the beginning. This is why

Getting
employed
Start a business

Consultation on
starting a business

Consultation on
management

persons in total have taken the program so far. About 300

Support on legal issues

only 1% of nearly 30,000 students including postgraduates at

The University ofTokyo "Mentors"

the University of Tokyo. It is important to further increase the

Incubation facilities

more entrepreneurs. Some of them, even if it may be just one

Seminars and workshops
Support of global expansion

students attended the program this year. However, this israte. As more students take the program, Japan will havein one hundred people, would run a business that canchange the world. We hope to increase the people who starta business with their own ideas and technologies. Such

Support of fundraisingpeople will constitute an important pool of human resources

Support on intellectual
property rights and licenses

that support the Japanese economy and also become
attractive target for investments. We would appreciate thecontinued support of Sumitomo Electric.

CSR Report 2017

Social Contribution

Researcher

Entrepreneurshipeducation

many technical students participate in the program. 2,385

Environmental
Preservation

Student

University Corporate Relations

Human Resources

Lecture in the Entrepreneur Dojo program

Supply Chain

Trade show at South by Southwest (SXSW)

76

Promotion of CSR Activities in Affiliates

Sumitomo Rubber Industries, Ltd.
Sumitomo Rubber Industries established the Sumitomo
Rubber Group's Basic Philosophy of CSR in 2008 out of
the idea that it is necessary to clarify the code of
conduct in the Group's CSR activities as a whole andfurther accelerate the management that pursues social
value.
The Basic Philosophy consists of CSR Philosophy andCSR Guidelines. Our CSR Philosophy declares thatthrough CSR activities we will become a corporategroup that is trusted by society in a way that people
see our continued existence as a positive thing, and
our CSR Guidelines specify what we should do based

Preparing for Tree Planting Activities (Weeding, Pruning)
at Sakai Kyosei no Mori (Sakai Coexistence Park)on the philosophy. The guidelines are composed offive components, namely Green (green initiatives),

Based on the basic philosophy and guidelines of CSR

Ecology (ecological process), Next (next-generation

activities, we develop new and unique CSR activities,

product development), Kindness (kindness toand create new value through business activities, toemployees) and Integrity (integrity for stakeholders),

further enhance our social value and thereby improvewith the acronym being GENKI after the Group's

our economic value.

GENKI Activities, which are internal activities launched
in 1988 to energize people.

Web

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

Scholarship program to develop human resources in technical fields

Sumitomo Wiring Systems, Ltd.
To contribute to society, Sumitomo Wiring Systems (SWS)
aims to help supply safe, convenient and eco-friendly cars to
as many customers as possible by producing products used insuch cars. In addition, we engage in various types ofcommunication with local residents through social
contribution activities so that we can be a company that isrooted in the local community and loved by the people.
Our specific initiatives include the assistance for the
rehabilitation of disaster-affected areas, support for career
education of elementary and junior high school students,
sports activities of young people and events in theneighborhood and environmental conservation activities. We
are also working to inherit the local traditional performing art

Loan of welfare vehiclesof the historical Yokkaichi Suwa-Daiko Japanese drum as acompany based in Yokkaichi. Our volunteer employees showneighborhood and donation of tools for boccia, a sport

the drum performance in local festivals and welfare facilities.

designed for persons with disabilities, to special support

Last year, four companies located in Mie Prefecture including

education schools in Mie Prefecture.

SWS established a joint company to create eco-friendly local

We also encourage our group companies, which are locatedcommunities, and the joint company began the development

in various parts of the world, to further enhance their social

of infrastructure for hydrogen stations. Meanwhile, we

contribution activities. To this end, we introduce andrecruited three players of PEARLS, a women's seven-a-side

commend various activities that our group companies haverugby team based in Mie Prefecture, to help diffusion andconducted in a suitable manner for the respective countries

development of sports and improvement of sports

and regions as models to be followed by other groupcompetence in the prefecture.

companies.

In 2017, celebrating its 100th anniversary, SWS is committed
to new sorts of CSR activities such as the loan of welfare
vehicles to a specified nonprofit organization in the

77 CSR Report 2017

Webhttps://www.sws.co.jp/en/csr/index.html

Basis for Management

Sumitomo Riko Company Limited
To provide a basis for the fulfillment of our responsibility asa corporate citizen determined to earn the trust ofcommunities and society at large, Sumitomo RikoBusiness Outline

established the corporate citizenship policy stating"Sumitomo Riko Group recognizes that we belong to the
local community and, as a good corporate citizen, makeefforts to create a better society through corporate
citizenship activities".
We aim to make value-creating social contributions, which
are positioned as activities that help meet society's
through an active commitment to social issues and also
help enhance our corporate value.

The Sumitomo Riko Group subsidy for developing dreams,
town and people is provided in four areas

We have provided a Sumitomo Riko subsidy for "developing
activities and the promotion of coexistence with the naturalactivities in Kita-Owari, Aichi Prefecture, Matsusaka area,

environment. We invite candidate organizations in each of

Mie Prefecture and Ayabe city, Kyoto Prefecture. The

the areas and select four organizations in the "Dream

number of the areas where the program is organizedcourse" which supports new activities and two organizations

increased to four this fiscal year with the launch of it in thein the "Town and People course".

area around our Fuji-Susono Plant. In this program, theSumitomo Riko will continue its Social contribution activities

subsidy is provided to activities that are considered toto earn the appreciation of communities all over the world.

contribute to society especially in the five priority fields
specified by Sumitomo Riko, namely diversity, the sounddevelopment of young people, building community, civil

Webhttps://www.sumitomoriko.co.jp/english/csr/

Group's CSR Activities

dreams, town and people" to assist local contribution

Governancechallenges, and proactively work to create value for societyCore
Category
Products & Services

Nissin Electric Co., Ltd.
Nissin Electric Co.,Ltd., which celebrated the 100th
anniversary of its incorporation on April 11, 2017, promotes
its social contribution activities with focus on the three

Supply Chain

areas of 1) support the development of engineers
2) preserve historical and cultural assets mainly in Kyoto
and 3) cooperate with local environmental conservation
activities. We especially committed to the development of
human resources of engineers who create innovations
based on an idea that they are essential for continuous
In this context, we have established a program to offer a

Scholarship program tosupport the development of engineers

grant-based scholarship to graduate students engaged inresearch of electricity, information technology and material
and mechanical systems. Every February, an exchange
meeting is held where the scholarship students report their
Nissin Electric encourage the students.
We will continue to make efforts to expanding the horizonsof engineers that seek engineering and research careers andalso support talented students with the ambition to acquire
sophisticated skills. Through these initiatives, we will
the future.

environmental conservation activities, we have begun toconsider to support waste reduction and forest preservation
activities.
In order to perform these activities steady and continuously,
we established Nissin Electric Group Foundation for Social
Contribution in March 2017. We aim to operate theprograms in a more integrated manner through this fund.

Meanwhile, about the activities of preserving historical andcultural assets mainly in Kyoto, we support the culturalWeb

http://nissin.jp/csr/index.html

CSR Report 2017

Social Contribution

contribute to cultivate people who support the industry of

Kyoto Prefecture and Kyoto City. For cooperation in local

Environmental
Preservation

research activities for the past year, and attendants fromasset conservation activities, including those developed by

Human Resources

growth of the Japanese industry.

78

Independent Third Party Assurance Report

79 CSR Report 2017

Comments from an External Expert

My ﬁndings on the CSR activities and information disclosure by the Sumitomo Electric Group are as follows:

Com m endable poi nts■ Evaluation of the eﬀectiveness of

the Board of Directors

by the Ministry of Economy, Trade and Industry and the Tokyo
Stock Exchange. All of these are major commendable points forthis ﬁscal year.
■ Increase in the employment rate of

The Board of Directors of Sumitomo Electric started to evaluate
its eﬀectiveness in 2016 and a summary of the results ispresented in the report of this ﬁscal year. It mentions a notable
point, which is the recognition of the board that "what structure
the board should have from the perspectives of diversity, etc."
should be examined as a future challenge to further enhance theeﬀectiveness of the Board of Directors. While many diversity
measures of Japanese companies are intended for employees,
diversity in a company generally means diversity in its
management organization including the board of directors in a
global sense. Quite a few studies in the US and Europe also
claim that companies with more female directors havesigniﬁcantly higher proﬁt margins. The fact that the Board of
Directors of Sumitomo Electric has recognized the necessity toconsider this issue indicates that the evaluation of eﬀectiveness
functions is actually working well for enhancing the governanceand that the company's governance system is healthy.
■ Growth strategy with the use ofdiverse human resources
The promotion of diversity in human resources is also a priority
CSR initiative of the Sumitomo Electric Group. At the same time,
while Sumitomo Electric is a global company with over 240,000
employees in 40 countries around the world and the ratio ofoverseas employees of more than 84%, the company also
positions the use of such diverse human resources as a core
growth strategy. This approach to employees indicates that theGroup focuses on business management based on "integrated
thinking," which is essential in a sustainable society and that theimportant CSR issue is incorporated into the management
strategy.
■ Response to gender issues

Among the eﬀorts to promote diversity, the gender-related
initiatives for female employees are especially delivering
successful results. An action plan to respond to the Act on
Promotion of Women's Participation and Advancement in the
Workplace was developed in ﬁscal 2016 to further promote therecruitment and appointment of female employees. In addition,in April 2017, a new system to allow employees to take a leaveto accompany their spouses assigned overseas was establishedto provide female employees, who used to have no choice but
retirement on such an occasion, with an option to take atemporary leave. Such gender-related initiatives are also highly
valued by society, and Sumitomo Electric was certiﬁed as an
L-boshi company by the Ministry of Health, Labour and Welfare inAugust 2016 and selected as a Nadeshiko Brand in March 2017

the physically or mentally disabled
The Ministry of Health, Labour and Welfare plans to raise thelegally required employment rate of persons with disabilities
from the current rate of 2.0% to 2.3% by the end of ﬁscal 2020,
and the rate will rise to 2.2% in April 2018. In the meantime,
Sumitomo Electric has been committed to the employment of
persons with disabilities, which is shown in the increases in theemployment rate over time, and the rate has already exceeded
2.2% as of 2017. This is also highly commendable as a result of
the business attitude to promote the employment of persons
with disabilities not just to meet the legally required percentage.

A s p e c t s n e e d i n g i mp ro v e me n t■ Improvement of environmental performance

There are two items on which the Company failed to meet thetargets in the Action ECO-21 Campaign, which are the reductionof the absolute amount of CO 2 emissions (in Japan andoverseas) and waste (in Japan). The absolute amount increased
from the ﬁscal 2012 level, the base year, in either case. Both CO2emissions and waste are important environmental issues in
eﬀorts to establish a sustainable society, and I hope that steadyeﬀorts are made to reduce them in the future.
■ Reduction of total working hours

While the SWiTCH 17 Campaign, which was launched in ﬁscal
2014, sets a target of reducing total annual working hours to
1,900 to 2,000 hours, the ﬁgure keeps exceeding 2,000 hours
except for the slight decline in ﬁscal 2016. Karoshi, or death fromoverwork, has become a social problem and more and morecompanies are committed to reducing working hours. In thiscontext, I hope that Sumitomo Electric also strives to enhance
the management of this issue in a continuous manner.

Professor, Faculty of Economics,
Sophia University

Yoshinao Kozuma

Sumitomo Electric's Response to the Findings
We thank Professor Yoshinao Kozuma for providing suggestive opinions on our Group's CSR activities and information disclosure.
Professor Kozuma gave a high mark to our initiative to evaluate the eﬀectiveness of the Board of Directors. We will continue toexamine what structure the board should have from the perspectives of diversity, etc. to further enhance the function of the Boardof Directors for the sustainable growth of Sumitomo Electric and medium- and long-term improvement of its corporate value.
For our growth strategy with the use of diverse human resources, we position the promotion of diversity as a priority initiative in
our mid-term management plan and will continue to work for the globalization of human resources and organizations.
With respect to the response to gender issues and increase in the employment rate of the physically or mentally disabled, while

Yoshitomo Kasui
Managing Director
and Chairperson of
the CSR Committee

we assume that our past eﬀorts made certain results, we will continue and promote the initiatives.
As to the items identiﬁed as aspects needing improvement, we will intensify our eﬀorts to improve environmental performanceand reduce total working hours. We will further develop our CSR activities while paying attention to their relevance to the SDGs
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 2017

80

Administration Division (CSR Promotion Oﬃce)
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Phone: +81-3-6406-2611 Fax: +81-3-6406-2700［URL］http://global-sei.com/csr/ ［E-mail］csr@info.sei.co.jp

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［Published November 2017］