SEI CSR Report 2014

SE I CSR Report 2 014

Editorial Policy
This report outlines the business and CSR initiatives of theSumitomo Electric Group including the economic aspects andbusiness strategies in the ﬁrst half, and reports the Group's
speciﬁc CSR activities in each of the CSR core categories.
● As we established the mid-term management plan

VISION2017 in ﬁscal 2013 and selected new CSR core categories
and priority themes, this report presents the basic approachto each priority theme as well as the activities of the staﬀ incharge of the initiatives (P18 to 22).

● Among the ﬁve CSR priority themes,

promotion of diversity,
prevention of global warming and promotion of CSR
procurement were selected as the subjects for the Fourth
Sumitomo Electric Group Stakeholder Dialogue. This reportintroduces the opinions exchanged between external
experts and our General Managers in charge of the themesin the dialogue (P23 to 25).

● The Products & Services section reports on the

products
and technologies that help solve social problems provided
by the Sumitomo Electric Group (P33 to 34).

We have continued to present the following items for better
understanding of the contents of this report.
● In P17, the main targets and actual results in ﬁscal 2013, as

well as the targets for ﬁscal 2014, are summarized to
introduce our major activities in the CSR core categories for
the Group.
●

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.

● A list of awards given by external organizations is publishedon our website in Japanese.
（ http://www.sei.co.jp/award/index.html ）● The acquisition of ISO 14001 certiﬁcation is published on

the following website:（ http://global-sei.com/csr/environment/data.html ）■ Period Covered by This CSR Report

April 1, 2013 through March 31, 2014 (ﬁscal 2013).
Some activities conducted in ﬁscal 2014 are also covered.
■ Boundary of This CSR Report

Sumitomo Electric Industries, Ltd. and its consolidated
subsidiaries (342 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 RikoCo., Ltd., Nissin Electric Co., Ltd. and Sumitomo Densetsu Co.,
Ltd., which are listed in stock exchanges in Japan, and theirconsolidated companies are excluded, and Sumitomo Electricalone or only the Company and limited consolidated
subsidiaries are included in some cases. The items referenced
within such a speciﬁcally limited boundaries are indicated in
the text or footnotes in the table or graph.
● For details of the scope of data collection for environmental

indicators, see Explanation of the Boundary in P59.
● The boundaries of the data compilation for

Corporate andBusiness Outline (P9 to P10) are Sumitomo Electric and 381
consolidated companies.

● The data in

Social Contribution (P69 to P72) also coversome of the equity-method companies.

■ Guidelines Referenced

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

November 2014
(Last CSR Report: published in November 2013; and next CSR
Report: scheduled for release in October 2015)

Responses to ﬁndings by an external expert

Disclosure of information on diversity should be enhanced.
〉〉This report presents information about town meetings, which are organized to provide staﬀ in speciﬁc functions with

opportunities to talk directly with executives. The information includes data on the meetings held for female specialist staﬀ,
female general staﬀ and employees in other functions, as well as comments from a female employee who participated in
one of the meetings. We plan to consider promoting disclosure of various information on genders in overseas sites.

A reasonable explanation of the results of the Survey to Create a Lively Working Environment should be provided.
〉〉We will work to enhance the analysis and report of the results of theSurvey to Create a Lively Working Environment,

and also make discussions to improve the analysis of results from the measurement of other indicators.

In order to enhance objectivity and transparency, the information disclosed in this report has been reviewed byan independent third party for assurance. The results are presented in P73. As a result of the assurance, we havebeen authorized to use the mark shown on the right. This mark is the registration proof that SEI CSR Report2014 satisﬁes the Environmental Reporting Assurance and Registration Criteria designated by the Japanese
Association of Assurance Organizations for Sustainability Information (http://www.j-sus.org/english.html).

SEI CSR Report 201401

Assurance

Business Outline

Top Message

05

Basic Value Standards

07

Mid-term Management Plan VISION 201708

2013 Highlights

09

Company Proﬁle11

Our History and Business

15

CSR Management

16

Relationships with Stakeholders

Business Outline

Group's CSR Activities

03

Basis for Management

Basis for Management

CSR Core Categories

18

Innovation

19

Promotion of CSR Procurement

20

Promotion of Diversity

21

Prevention of Global Warming

22

Contribution through Our Business Locations
and Foundation

23

Fourth Sumitomo Electric Group

Governance

Main Targets and Actual Results in Fiscal 2013 /Main Targets for Fiscal 2014

Group's CSR Activities

17

Stakeholder Dialogue
C ON T EN TS

Core
Category

Core Category

Products & Services

Products &Services

GovernanceCorporate Governance27

Risk Management

29

Compliance

31

Research & Development

33

Products and Technologies That Help Solve Social Problems

35

Product Quality & Product Safety

38

Logistics Quality and Oﬃce Work Quality

Supply Chain

26

Supply Chain

39

Supply Chain

Core Category

Human Resources

43

Diversity

47

Human Resource Development

49

Safe and Sound Workplace

53

To Eliminate Occupational Accidents

55

Environmental Management

60

Activities to Prevent Global Warming

64

Promotion of Resource Conservation and Recycling

66

Reduction of the Release ofHarmful Chemical Substances

67

Expansion of Environmentally Conscious Products

68

Activities to Conserve Biodiversity

69

Social Contribution

73

Independent Third Party Assurance Report

74

Comments from an External Expert

Core Category

SocialContribution

Social Contribution

Environmental
Preservation

Core Category

Environmental
Preservation

Human
Resources

Core Category

SEI CSR Report 2014

02

To p
Message

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

Sumitomo Electric Industries, Ltd.

Pref
refaceace
I sincerely express my gratitude to our stakeholders for theircontinued support and understanding of the Sumitomo
Electric Group's business activities.
We are striving to maintain our “Glorious” state, which is anunchanging value for us as a corporate person based on the
Sumitomo Spirit and the Sumitomo Electric Group Corporate
Principles, and to achieve “Excellent” business results.
Through these efforts, we aim to become a “Glorious
Excellent Company,” which is our ideal state in the future.
As a milestone on the way to the goal, we are now committed
to achieving the mid-term management plan “VISION 2017”
by fiscal 2017.

CSR Core Initiatives
CSR activities underlie our efforts to achieve the VISION
2017. We have selected five CSR core categories, namely
Products & Services, Supply Chain, Human Resources,
Environmental Preservation and Social Contribution, andlaunched the activities for the CSR priority theme set foreach of the categories to make efforts in a more focusedmanner.
The priority theme in the Products & Services category is“innovation.” This “innovation” aims to develop productlines with unique features and future potential, which willconsequently contribute to society through businessactivities in a sustainable manner. In July 2013, our joint
project with Hokkaido Electric Power Co., Inc. todemonstrate redox flow battery was selected to be subsidized

SEI CSR Report 2014

03

by the Ministry of Economy, Trade and Industry. We will
promote this project, which is currently at the installation
stage, to facilitate the use of renewable energy as it is amajor social challenge.
In the Human Resources category, “promotion of diversity”
is set as the priority theme. Our Group is a corporate groupthat operates business with more than 200,000 employees inabout 40 countries around the world. Further growth of ourGroup therefore depends on the active use of humanresources in our Group companies both in Japan andoverseas. We recognized 24 officers and equivalents inoverseas subsidiaries as “global leaders” under the newly
established Global Grading System on April 1, 2014 toappoint them as “Group Global Executives.” Promotion ofdiversity is a priority initiative in VISION 2017 not only froma CSR perspective but also as a business strategy to enhance
our competitiveness.
The priority theme in the Environmental Preservation
category is “prevention of global warming.” As the key
performance indicator (KPI) for this theme, we have set thetarget of reducing greenhouse gas (GHG) emissions fromour global operations by 5% in fiscal 2017 from the fiscal
2012 level. While also taking the expansion of our business
into consideration, we will promote energy saving and otherenvironmental conservation measures based on recognition
that environmental preservation is one of the most importantbusiness challenges.
While “promotion of CSR procurement” is the priority themein the Supply Chain category, we promote our activities inBasis for Management
Business Outline
Group's CSR Activities
Environmental
Preservation
SocialContribution

The Sumitomo Electric Group has inherited the Sumitomo
Spirit that has a history of more than 400 years, andcontinuously grown through many challenges and difficulties.
Keeping adherence to compliance and corporate ethics inmind as the absolute foundation, we will develop ourbusiness activities and continue to grow with the aims of
becoming a Glorious Excellent Company that wins the trustof society including stakeholders and contributing to thecreation of a new society.
We sincerely ask for your continued understanding andsupport for our endeavors.

Human
Resources

Closinglosing Remarks
emarksSupply Chain

As mentioned in P29, Sumitomo Electric received asurcharge payment order from the Japan Fair Trade
Commission (JFTC) in connection to the supply of
automotive wiring harnesses and related products in January
2012, and was also notified by the European Commission ofits decision finding infringements of EU competition laws in
July 2013. The competition authority of China also imposed asurcharge on the Company for its violation of the country's
Anti-Monopoly Law in August this year. Following its
investigation launched in January 2009, the European
Commission imposed a surcharge on us in April of this year
based on its decision that we had violated EU competition
laws concerning the supply of high voltage and special highvoltage power cables. We would like to offer our sincere
apologies to our stakeholders for this situation. In responseto the on-site investigation by JFTC in June 2009 concerning
optical fiber cables and related products, we have taken
corrective actions including strict compliance with the
Antimonopoly Act and prompt recruitment of outside experts

Products &Services

ComplianceCore
Category

The CSR core initiatives mentioned above are the foundation
for achieving VISION 2017. Needless to say, we also have tofurther strengthen the corporate structure and ensurecompliance so that our Group can progress in a sustainable
manner.

to conduct studies into other infringement behavior, if any, inorder to identify and eliminate conduct that violates the Act.
Additionally, we have conducted intensive training, enforced
Competition Law Compliance Regulations and established asystem to ensure the administration and management of theRegulations by specialized organizations, in order toreinforce competition law compliance by the entire Group.
While the decisions by the Japanese and other competition
authorities concerning automotive wiring harnesses andrelated products, as well as high voltage and special highvoltage power cables, applied to violations that predate thosepreventative measures, we recognize the gravity of thesituation with sincerity and will strive to implement fairbusiness activities that merit the trust of society, identifying
competition law compliance as a top priority issue in ourbusiness management.

Governancethe Social Contribution category with focus on “promotion ofsocial contribution activities at business locations” and“contribution through the SEI Group CSR Foundation.”

SEI CSR Report 201404

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 century-long eﬀorts tosolve environmental problems in the Besshi Copper Mine, thisspirit 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

Monjuin Shiigaki※

request for guidance on conducting business was Monjuin Shiigaki.

Banji-nissei(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

SEI CSR Report 201405

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.

Oﬀer 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.

Group's CSR Activities●

Business Outline

Each company of the Sumitomo Electric Group shallBasis for Management

The Sumitomo Electric Group Corporate Principles

The Sumitomo Electric Group Charter of Corporate Behavior
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

GovernanceTo realize a Glorious Excellent Company, which is the ideal state of the Sumitomo Electric Group, we must uphold the Sumitomo

as to help each and every administrator and employee in the Group make judgments and act to realize the principles presented in
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●

2. Development of New andOriginal Businesses and Products
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.

SocialContribution●●

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●

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

Products &Services●Core
Category

1. Provision of Useful and
Safe Products and Services

SEI CSR Report 201406

Mid-term Management Plan “VISION 2017”(FY2013 to FY2017)

Overall Strategy
Our group boasts superb technical expertise, providing a wide range of materials and products. Under VISION 2017, we strive
to create new value in the form of materials, systems, and solutions through constant innovation and to provide such value
globally. To achieve this, we will focus on six business fields essential to society in the three business fields: mobility, energy,
and communications (ICT); environment and infrastructure as the integrated business field of the above three; and life sciences
and resources as new business fields.

❶ Ensuring that our business activities are based on the Sumitomo Spirit and the Sumitomo Electric Group
Corporate Principles, we will firmly maintain the three bases of our group's business activities: humanresources, manufacturing (monozukuri), and finances.
❷ With innovation as our keyword, we will achieve new growth in current business fields, while expanding
into integrated business fields and challenging new business fields.
❸ We will focus on our primary areas: strengthening strategic marketing, increasing our global presence,and enhancing our leading technology.
❹ We will strive to accomplish the numerical targets of sales of 3,000 billion yen, operating income of 180
billion yen, and ROA of 9%.
By promoting the above efforts, we aim to take a further step toward becoming a Glorious Excellent Company.

SEI CSR Report 201407

2 0133 Highlights
Highlig

Major events during ﬁscal 2013 are listed below.

2 0 13Basis for Management

April
il

Received Thomson Reuters 2013 Top 100
Global Innovators Award.

Received FY2013 Intellectual Property
Achievement Award from Japan's Ministry of Trade,
Economy and Industry (METI).

Business Outline

NovemberMay

2 0 14JanuaryCore
Category

Supported the 69th Lake Biwa Mainichi Marathon
as a special sponsor.

Governance

March

Products &Services

AugustHeld the Sumitomo Electric Group
Global Awards Conference.

February

July

Redox flow battery was selected in
the METI program for urgent demonstration projectof large-scale power storage systems in fiscal 2012.

Received the Minister of Education, Culture, Sports, Scienceand Technology Prize of the Technology Management &Innovation Award 2013 for the launch of high-voltage andhigh-efficiency gallium nitride transistor (GaN HEMT) intended
for compact and power-saving cellular base stations.

Group's CSR Activities

December

June

Launched experimental research fora high-temperature superconductive direct-current
power transmission system in Ishikari City,
Hokkaido as a project entrusted by METI.

Supply Chain

October

Human
Resources

September

Received the 60th (FY2013) Okochi Memorial Technology
Prize for the development of nano-polycrystalline diamondsynthesis technology and applied products.

Environmental
Preservation

Received a Rare Metal Recycling Award at the
Resource-Recycling Technologies and Systems
Award 2013 Ceremony for the development of
the tungsten recycling system from scrap carbide
tools together with Toyota Motor Corporation.

Released a concentrator
photovoltaic system,and delivered thesystem to the
University of Miyazaki.

SocialContribution
SEI CSR Report 201408

Company ProﬁleGlobal Business Expansion
The Sumitomo Electric Group is a
global corporate group with 381
consolidated companies andover 220,000 employees inapproximately 40 countries

EUROPE59

around the world - primarily in
Asia, America, Europe and Japan.
While providing superior products

ASIA

149

JAPAN

112

and services, we respect thecultures and customs of thecountries and regions in which we
operate. As a corporate entity weconduct business in harmony withsociety, so as to contribute to the

AFRICA11

development of the economy andsociety.

OCEANIA

3

Business Conditions in Fiscal 2013
During fiscal 2013, the Japanese economy recoveredbusinesses such as power cables, magnet wires, electricmodestly with growth in private consumption and corporate

works, equipment for power generation and in theearnings amid the depreciation of the yen and increases inindustrial material businesses such as cemented carbide

stock prices underpinned by expectations for the economic

tools for automotive as well, demand continued to be firm.

policies as well as the impact of monetary easing. The

Under these circumstances, consolidated net sales for

global economy as a whole also achieved a mild recovery

fiscal 2013 totaled 2,568.8 billion yen, a year-on-yearwith resilience in the US economy and turnaround in theincrease of 18.9%. Our operating income also grew byEuropean economy although economic growth in China,

56.3% from the previous fiscal year to 120.1 billion yen

India and other emerging countries showed signs ofwith increases in depreciation expenses and research andslowdown.

development costs as a result of upfront investment offset

In the business environment surrounding the Sumitomo

by the impact of the weaker yen and cost reduction. Net

Electric Group, demand for wire harnesses remained strong

income increased as well to 66.7 billion yen, 75.9% higher

mainly in overseas markets. In the environment and energy

than that in fiscal 2012.

SEI CSR Report 201409

JAPAN
7

Canada2

Mexico9Brazil7

Argentina

1

Germany

12

Poland6

ASIA

Slovakia

2

Singapore

4

Hungary

3

Thailand

19

Italy

3

Malaysia

5

Netherlands

3

Indonesia

12

AFRICA

Romania2

Philippines

11

South Africa

2Turkey4Vietnam

9

Morocco4

Portugal

1

China

68

Tunisia3

Bulgaria

1

Hong Kong

5

Egypt

2

Ukraine1

Taiwan5

Belgium

1

South Korea

4

OCEANIAFrance

6

India

6

Australia

Serbia1

Cambodia

1

Russia

4

Spain

1

Czech Republic

1

3Group's CSR Activities

47

28

USA

Business Outline

AMERICAAMERICA
112

Japan

Basis for Management

EUROPEUK

Numbers as of end of March each year

Companies Consolidated

Net Sales by Region(Consolidated)(Persons)
250,000

in total

200,000

Breakdown ofcompanies consolidated

157,203150,000
100,000

119,839(as of March 31, 2014)

Asia 7,163

187,769

169,175

157,235

145.819

Europe and others 2,982

225,484

206,323

194,734

182,773

25,68850,000Consolidated subsidiaries (342)●
Equity-method aﬃliates (39)●

Total forFiscal 2013

Governance

381

Number of Sumitomo Electric Group Employees(100 million yen)

37,3640

2009

37,4992011

37,148
2012

37,715

America 4,025

2013 (Fiscal year)

Domestic

Japan 11,518

Core
Category

Overseas

36,9542010※Sumitomo Electric and consolidated subsidiaries

Products &Services

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

25,68825,00018,36415,000

8,904

7,054

1,038

1,000

10,488

9,399

1,201

1,200

21,59920,593

20,33814,170

869

800

706

600

10,000400

5,000

11,434

11,31011,194

11,111

11,518

667

380

287

200

768

589

517

Human
Resources

20,000

Supply Chain

Net Sales (Consolidated)(Unit: 100 million yen)

0

0

2009

2011

2012

2013

Domestic

25,00019,563

20,721

22,976

10,00010,646

10,926

11,3892012

2013(Fiscal year)（％）
8

25,548

7.6

12,447

13,799

5,000

6.6

6.1

6

7.3

4

3.6

2

3.3

4.8
5.9

SocialContribution

15,0002011

Net Income

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

Total Assets and Net Assets (Consolidated)

19,3992010

Operating Income(Unit: 100 million yen)

20,0002009(Fiscal year)

Environmental
Preservation

Overseas

2010

5.9

3.7

0

0

2009

Total Assets

2010

Net Assets

2011

2012

2013

2009

(Fiscal year)

ROE

2010

ROA

2011

2012

2013

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

Glossary ＊ROAROA (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).

SEI CSR Report 201410

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

Company Name
Established■ Incorporated■ President■ Capital Stock■ Head Oﬃce■■

Sumitomo Electric Industries, Ltd.
April 1897
December 1920
Masayoshi Matsumoto
99,737 million yen (as of March 31, 2014)
4-5-33, Kitahama, Chuo-ku, Osaka, JAPANH I S T O R Y
1897

Sumitomo Copper Rolling Works was founded.

1939

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

1900

Started production of coated wires.

1941

Opened the Itami Works.

1908

Started production of power cables.

1943

Started production of vibration-proof rubber and fuel tanks.

1909

Started trial production of telecommunication cables.

1946

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

1911

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

1948

Started marketing sintered powder metal products.

1949

Entered into the business of construction of overhead transmission lines.

1957

Supplied the ﬁrst Japan-made television broadcasting antennas.

1916

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

1961

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

1920

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

1962

1931

Started production of cemented carbide ( IGETALLOY ) tools.

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

1932

Started production of special steel wires.

1963

Started production of disc brakes.

1964

Started production of electron beam irradiation wires.

1968

Entered into the business of traﬃc control systems.

1969

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

SEI CSR Report 201411

Basis for Management

Automotive

Quick charging connector for EVs

SUMITUBE TM

SUMI-CARD TM

High-voltage optical ﬁber composite submarine cables

Magnet wires

Broadband network service devices

Optical data links

Sintered powder metal parts

Prestressing steel wires

Business Outline

Vibration -proof rubbers

Aluminum wiring harnesses

Electronics

Group's CSR Activities

Flexible printed circuits

Environment & Energy

Governance

Copper wire rods

Core
Category

Infocommunications

Products &Services

Multicore optical ﬁber cables

Supply Chain

Industrial Materials

Started production of compound semiconductors.

1971

Opened the Kanto Works.

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

2004

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

2006

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

2007

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

1974

Started production of optical ﬁber cables.

1975

Contracted to construct a power transmission line in Iran.

1976

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

1978

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

1981

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

1982

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

2008

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

1996

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

2009

Sumitomo Electric Device Innovations, Inc. was organized.

2010

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

2014

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

1998

Developed and started marketing ecology wires and cables.

1999

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

2001

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

2002

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

SocialContribution

2003

Environmental
Preservation

1970

Human
Resources

Cutting tools

SEI CSR Report 201412

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

Automotive

Ratio of thebusiness unit
in the total sales

Ratio of thebusiness unit in thenumber of employees

51.1％

76.8％

1,351,049

173,225(million yen)(persons)

Ratio of thebusiness unit
in the total sales

Ratio of thebusiness unit in thenumber of employees

6.2％

2.8％

Supporting communications

Infocommunications

Sumitomo Electric provides various solutions that make oursociety safer, more secure, and more comfortable. A widearray of these solutions include optical ﬁbers/cables andother telecommunication-related products necessary for
FTTH and other optical network construction, ITS-related
products, and access-based networks. We will continue todevelop innovative technologies and products and supply
them to customers, thereby contributing to the construction
and upgrade of broadband network infrastructures.

164,893

6,396(million yen)(persons)

Ratio of thebusiness unit
in the total sales

Ratio of thebusiness unit in thenumber of employees

9.9％

9.6％

Supporting advancement in the functions
and performance of electronics

Electronics

In the electronics ﬁeld, devices are required to be ever smaller,
lighter, more functional, and more sophisticated. To meetthese requirements, Sumitomo Electric has been expanding its
product lineup by continuously developing new materials,
wires and other parts. Sumitomo Electric's leading-edge
Technologies have been employed eﬀectively for advanced
medical, automotive and aircraft equipment, as well as for
widely used products such as smartphones and tablet PCs.

262,624

21,646(million yen)(persons)

Ratio of thebusiness unit
in the total sales

Ratio of thebusiness unit in thenumber of employees

21.3％

4.9％

Supporting a stable energy supply

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

564,157

11,042(million yen)(persons)

Ratio of thebusiness unit
in the total sales

Ratio of thebusiness unit in thenumber of employees

11.5％

5.9％

Using a wide range of technologies forthe prosperity of industrial society

Industrial
Materials

Taking advantage of its material development capabilities basedon electric wire/cable drawing technology, Sumitomo Electric hasdeveloped 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 diamondcalled the ultimate material. Various products made from these
sophisticated industrial materials support the bases of industries,
thereby contributing to the development of society.

303,299

13,175(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.
SEI CSR Report 201413

Growth Strategies for VISION 2017
Strategies●

Solid growth is expected in theautomotive market, particularlyin emerging nations.

In addition to further growth in wiring harnesses/connectors and anti-vibration rubber products as
our core businesses, we will expand in the following areas:●

Hybrid electric vehicles (HEVs),
plug-in hybrid electric vehicles(PHEVs), electric vehicles (EVs) andother eco vehicles will become morecommon. We also expect progressin fuel eﬃciency technology forinternal combustion vehicles(gasoline-fueled cars, etc.) andgrowth in idling stop systems (ISS).

●

Growth in Non-Japanese Share
Growth in share of wiring harnesses/connectors and anti-vibration rubber products for
non-Japanese automotive companies

Acceleration of New Product Development●●●

Cost Reduction●●

Striving for optimally located production
Development of automation technology

Strategies

Growth is expected indevelopment of high-speed,
high-capacity communication
infrastructure due to the worldwide
increase in communication traﬃc.

Acceleration of Overseas Expansion

The global shift to FTTH, including
the CATV markets, should gain
momentum, and growth is also
expected in the ITS business.

●●

Expansion of overseas production (local production for local consumption of optical ﬁber, etc.) and
improving participation in overseas markets (CATV, ITS, etc.)● Building a system for global procurement and quality control●

Cost Reduction and Improvement of Product Proﬁtability
Continuing/Promoting business restructuring
Striving for optimally located production● Strengthening manufacturing and development capabilities (laser diodes, optical transceivers, etc.)● Shifting to high-margin products (low-loss ﬁbers, etc.)●

Group's CSR Activities

Market Status●

Business Outline

Pursue lighter weight (aluminum wiring harnesses, etc.) and responding to modularization
Broadening range of electronics products (central gateways, etc.)
Introducing products for next-generation/eco vehicles (ISS related products, etc.)

Basis for Management

Market Status

Expanding Products for Smart Functionality●

Market Status

Strategies

There should be steady growthin the consumer product market,
centered on mobile phones, andgrowth of the automotive market
is also expected to continue.

Strengthening of Global Manufacturing and Sales System●

Strengthening of New Product Development
Focusing on developing new products that integrate core technologies,
such as FPC for smartphones and tablets, high-speed wiring harnesses, and automotive tab leads● Accelerating development of key device products●

Expansion of Customers and Business Fields●●

Products &Services

Further progress is expected inareas such as productmodularization, acceleration ofcommoditization, anddiversiﬁcation of customer needs.

Responding to diversiﬁcation of customer needs through eﬀorts such as establishing speciﬁcations
customization centers, and ensuring a ﬂexible production response

Expansion to systems/units/modules and strengthening solution proposals
Acceleration of strategy for broadening user baseStrategies

We expect to see growth,both inside and outside of Japan,
in markets relating to new energy
systems to cope with increased
sophistication of electric power
infrastructure, energy conservation,and demand restraint, etc.

Strengthening Development of Products Relating to Next-Generation Energy Systems

Growth is also expected ininfrastructure demand,
primarily in emerging nations.

Accelerating and launching development and commercialization of products andnew materials relating to next-generation energy systems such as renewable energy,
storage batteries, superconducting cable, and other key areas of integrated ﬁelds

Strengthening Ability to Propose Solutions●

Strengthening solution business for new social infrastructure and electric power infrastructure

Strengthening Global Supply System●

We will improve our production and sales organization on a global basis,starting with areas such as supply of copper and aluminum

Steady growth is expected in
the automotive market.

Core Technology Improvement and Innovation●

We should also see growth ininfrastructure demand, primarily inemerging nations.

●

Problems related to rare metals,
such as procurement diﬃculties
and high prices, are expected to
become more severe.

Strengthening ability to deal with structural change in products (switching to EVs, etc.)
Strengthening core technologies and improving processing technologies, etc.
● Challenging healthcare and other new ﬁelds●●

Strengthening Raw Material Procurement●

Promoting global procurement and recycling

Accelerating Overseas Expansion●●

Expanding overseas production and strengthening participation in overseas markets
Building a global sales and development system

SocialContribution

Strategies●

Environmental
Preservation

Market Status

Human
Resources●●

Supply Chain

Market Status●

Core
Category●●

Governance

Providing optimal product solutions for each overseas region (HEMS, telematics, etc.)

SEI CSR Report 201414

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

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

Social contribution throughbusiness operations

Five new CSR
core categories

line with compliance regulations.

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

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

Basic value
standards

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

Contribution to
the establishment ofa sustainable society

From FY2013

New ﬁve CSR
core categories

CSR priority themes the targets for VISION 2017

Products & services

Innovation

Supply chain

Priority themes for achievement of

Solutions tosocialchallenges

Promotion of CSR procurement

Human resources

Promotion ofdiversity

Environmental
preservation

Prevention of
global warming

Social contribution

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

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

Achievement of
VISION 2017targets

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

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

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

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

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

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

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

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

Society (stakeholders)

Instructions and guidanceExternal disclosure

Public hearing function

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

Information
disclosure andinformation
protection

Compliance

Public Relations Dept.
Department
in charge

Legal Dept.

Investor RelationsOﬃce, Accounting
Dept.
Information
Systems Dept.

Target and achievement report

Environmentand safety

Procurement
and logistics

Safety &Environment Dept.

Procurement Div.

Plant & Production
Systems
Engineering Div.

Support and guidance

Respective business sections and Sumitomo Electric Group companies

SEI CSR Report 2014

Quality andcustomer satisfaction
improvement

Employees,
human rights andsocial contribution

Quality
Management Div.
Logistics
Management Dept.

HR &Administration Div.

Information
Systems Div.
Sales Planning &Marketing Div.

Promotion and education ofbusiness philosophy and visions

Human resources
development

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

Public hearing function

Employees

Glossary ＊KPIKey Performance Indicators

15

Relationships with Stakeholders
Main responsibilities of the Sumitomo Electric Group

Main means of communications

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

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

●

Reduction of greenhouse gas emissions
Promotion of energy saving and recycling● Reduction of waste, reduction of
hazardous chemical substances●

GlobalEnvironment

●

●

●

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

Customers

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

The Sumitomo Electric Group conducts
business activities through 382 companies
located in approx. 40 countries all over theworld (as of March 31, 2014).

●

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

Employees

The Sumitomo Electric Group has approx.
226,000 employees consisting of approx.
38,000 employees in Japan and approx.
188,000 employees in other countries.
Around 80% of the Group employees thus
work outside Japan (as of March 31, 2014).

Shareholders
andInvestors

The total number of our shareholders is approx. 60,000,
and the number of shares issued and outstanding isabout 800 million. By type of shareholders, ﬁnancial
institutions and foreign holders own 39.83% and 41.14%of the shares respectively, followed by Japaneseindividuals and others (12.39%) (as of March 31, 2014).

CentralandLocal Governments

The Partners' Meeting held in ﬁscal 2013
gathered 218 of our main suppliers.

●

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

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

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

●

●

●

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

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

●

●

●

●
●

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

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

Communication through daily procurement activities
Partners' meetings
Communication through the supplier evaluation sheet

Sumitomo Electric continued its commitment to active

stipulates that we will aim to disclose appropriate corporate

dissemination of information on various Group activities in

information to our stakeholders to promote communication

fiscal 2013 as well. While we had fewer interviews and presswith society. In accordance with the charter, we havereleases than in the previous fiscal year, we posted moreestablished a system in which information on occurred

articles on our newsletter SEI WORLD, as well as on Smile

material facts and decisions is collected and confirmed by

Relay, our blog about social contribution activities. Throughpublic relations sections in cooperation with relevant

complete revision of the company's introductory pamphlet

divisions so as to promote timely and accurate information

and DVD and other efforts, a wide range of information on

disclosure. In addition, Sumitomo Electric established theour corporate activities was provided to help our

Public Relations Committee in 2006 as a cross-sectional

stakeholders improve understanding of the Group.

Supply Chain

The Sumitomo Electric Group Charter of Corporate Behavior

Products &Services

Efforts to Disseminate Information
Core
Category

Disclosure of Corporate Information

GovernanceSuppliers

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

Group's CSR Activities

Sumitomo Electric Group

Local Communities
andNPOs/NGOs

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

Business Outline●

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.

organization 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 planning

166

150
100

89

85

2012

2013

104

172

80

66

50

59
15

0

Communication with
Shareholders and Investors
Sumitomo Electric believes that an important goal of its investor
in a timely and fair manner, so as to obtain appropriate
evaluation of our corporate value in the capital market.
The Company ensures communication with institutional
investors and analysts by organizing briefings on financial results
general shareholders and investors by developing the websites
in consideration of such shareholders. For example, we post
financial information and press releases and distribute video
images of financial result briefings.
We will continuously promote fair and prompt information
disclosure and further improvement of the content.

Interview

2012

2013

2012 2013
Newsletter
President's(Number of articles)
blog

20

2012 2013
Blog
Smile Relay(Fiscalyear)

We also worked to improve our websites by adding contents
concerning Near-Infrared Ray Composition Imaging System
CompovisionTM and Smart Energy System, among others. As
Sumitomo Electric has been a special sponsor for the Lake
Biwa Mainichi Marathon since 2013, we launched a special
website for the marathon again in 2014, and also launched a
Facebook page to publicize the event.
Meanwhile, President & CEO Masayoshi Matsumoto's Blog,
which was opened to disseminate the Sumitomo ElectricGroup's policies among Group employees and related
persons and also encourage external stakeholders toSocialContribution

and interviews. We also strive to enhance communication with2013

Environmental
Preservation

relations is to notify market participants of accurate information

Press release

2012

Human
Resourcesof measures to enhance the corporate brand value.

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

understand our Group and feel closer to us, marked its
seventh anniversary.

SEI CSR Report 201416

CSR Core Category

Main Targets and Actual Results in Fiscal 2013 / Main Targets for Fiscal 2014
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 2013 and targets for fiscal 2014 on
the main initiatives in core categories. To meet the targets, we will continue to promote the initiatives based on the PDCA (plan-do-check-act) cycle.
Core
Category

Main Targets for Fiscal 2013

Results in Fiscal 2013

Products & services
Supply chain

Reduce complaints by 26% fromthe previous ﬁscal year

Reduced complaints by 16% fromthe previous ﬁscal year

Continue to promote own process quality
assurance activities (fourth year)
Continue activities striving toovercome key issues at each division
Develop the activities on a global scale
Improve the improvement process
Raise the assurance level: enhancement ofchecking stations (measuring techniques),
foolproof mechanism＊

Performed theme-based activities (107 themes inthe ﬁrst half and 123 themes in the second half)
at each division, expanded the activities into
overseas facilities, mainly in China and Tiwan (3regions), and enhanced the improvement process
at 8 sites in Japan through the examination of theapproach to reduce in-process defects

Continue to make requests based on the
CSR Procurement Guidelines to individual
suppliers and expand the initiative.
Consider the implementation ofmonitoring of suppliers

In Japan, made requests at the Sumitomo ElectricGroup Partners' Meeting. Overseas, Shanghai IPO
organized a brieﬁng session at the North China
reverse trade fair. Conducted monitoring of 122
main suppliers concerning CSR procurement

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

Provided 7 courses including "procurement-related laws
and regulations and CSR, environment and ethics,
and launched a training program to develop key
personnel on the Subcontract Act. Overseas, provided
training sessions for aﬃliates at liaison committees ofthe staﬀ in charge of procurement and outsourcing

Promote initiatives to implement the
Global HRM Policy
Steadily continue thetalent management cycle
Common personnel system for executives
Guidelines on international transfer, etc.

Organized human resource meetings at 9
Business Units to promote the talentmanagement cycle, and introduced the Global
Grade System and the Group Global Executive
Personnel System in April 2014

Continue to develop the SWITCH Plus
Campaign (third and ﬁnal year)
Improve work eﬃciency and productivity
Promote communication
Enhance the health of employees
Develop the next generation

Increased the number of half-day paid holidays(from 24 to 30 times), and further encouraged
employees to take paid holidays by introducing
Positive-oﬀ Holiday
Held a town meeting 19 times
Conducted a stress level test for all employees
Extended the paid period during childcare leavefrom the ﬁrst 3 days to 5 days

●

●

●

●

●

●

Evalu- Page
ation

△

36

●

●

Human resources

●

○ 35

●

○

△

40
41

42

43
44

45
○

49
50
52

○ 53

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

Out of the 14 items, Performance improved(◎, ○, △): 12 items, Performance unchanged(▽): 1 item, Performance deteriorated (▼): 1 item△

Conduct environmental audits

In Japan: Assessed facilities' water quality
11 sites

●

●

●

●

Environmental preservation

In Japan: Promote the second series ofaudits with focus on preventionof environmental accidents
Overseas: Conduct audits at
8 group companies

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

Implemented priority items for ﬁscal 2013
Strengthened and implemented the 1-2-3 activities
Started the second series of global safety evaluation
Performed cross-departmental activities (inspection ofdrums and reels, etc.)
Inspected plant disaster prevention and maintenance skills
at 12 sites
Supported and gave guidance to safety measures forconstruction work and operation at height
Developed safety global standard
Continued to develop personnel in charge of safety
promotion through overseas safety work groups
Supported activities at the operation sites designated for safety
management and activities subject to priority management until
abilities to take voluntary measures were achieved●

Continue to implement the education programthat supports compliance, and translate,develop and apply common basic rules on
procurement●

Establish activities involving all employees
Implement global safety evaluation
Enhance cross-departmental activities
Enhance plant disaster prevention activities
Supervise construction work and take safetymeasures for operation at a height
Develop and disseminate safety global standard
Continue education for human resource
development in Japan and overseas
Continue and enhance activities at the operationsites designated for safety management＊ andactivities subject to priority management●

Continue to make requests based on the CSR
Procurement Guidelines to individual suppliersand expand the initiative. Promote theestablishment of supplier monitoring●○

Accidents resulting in lost work time: 3,
no lost work time accidents: 24, andaccidents causing minor injury: 18●

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

Eliminate accidents resulting in lost work
time, reduce the number of no lost work time
accidents to 10 or less and reduce that ofaccidents causing minor injury to 10 or less●

Reduce complaints by 18% fromthe previous ﬁscal year

●

●

●

Main Targets for Fiscal 2014

△

54

●

●

●

●

●

Eliminate serious accidents and accidents
resulting in lost time work, and reduce the total
number of no lost work time accidents andaccidents causing minor injury to 20 or less
Implement priority items for ﬁscal 2014
Enhance site inspection by managers and supervisors(1-2-3 activities) and identiﬁcation of problems throughdialogues
Strengthen the horizontal diﬀusion of accident
prevention measures to eliminate similar disasters
Continue education for human resource development inJapan and overseas, as well as practice activities in KKP
●

●

●

●

●

●

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

●

●

●

●

●

●

●

Overseas: Conducted legal compliance audits at
9 sites, assessed facilities' water quality at
7 sites●

56

Promote activities to prevent unsafe actions
Continue and enhance activities at the operation sites
designated for safety management and activities
subject to priority management
Develop and disseminate safety global standard
Continue to implement global safety evaluation

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

57

Conduct environmental audits
In Japan: Promote the second series of legal compliance
audits, and continue the examination offacilities in terms of water quality
overseas: Conduct audits at 9 Group companies in theAmericas. Start the examination of facilities in termsof water quality with sites in China including thosethat have undergone legal compliance audits○ 57

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

Social contribution

Improve environmental education
In addition to the existing
systematic education, introduce
case studies using the past
incidents of hiyari ,or near-missProvided position-based training on the subjectsof environment in general, environmental laws,
chemical control and global warming with
content including environmental inspection offacilities and the issues indicated in past
inspections

Increase monetary contributions touniversity courses, scholarships and grants
to academic and research activities
supplied through the fund

① Monetary contributions to university courses:
94.5 million yen in total for 8 courses② Subsidies for academic and research programs:
20 million yen in total for 16 programs③ Supply of scholarships:
23.6 million yen in total for 98 persons○ 69

Promote cooperation with NPOs forsupport of the reconstruction of
the Tohoku Region and other purposes

Held a fair of products from the Tohoku region to
support the region's reconstruction from theGreat East Japan Earthquake
Participated in the TABLE FOR TWO program○ 70

Increase monetary contributions to university
courses, scholarships and grants to academic
and research activities supplied through thefund

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

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)

SEI CSR Report 201417

Glossary ＊Foolproof mechanism

Mechanism to prevent the operator from making mistakes or to detect any
mistakes and warn the operator. This mechanism detects any defects in
products and prevents them from being passed to the following process.

＊Activities at the operation sites designated for safety management
At the operation sites designated as requiring prompt improvement of the health and safety
activities due to occurrence of an occupational accident or other reasons, these activities
are promoted to take necessary measures in a planned manner and improve the structure.

CSR Core Category

Products & Services〈 CSR Priority Theme 〉

Our social contribution begins withservices that meet new social needs.
The Sumitomo Electric Group considers innovation, which is tocreate products with original features and future potential, as a

Business Outline

the development of products andBasis for Management

Innovation

priority theme. Using a wide range of technologies and products
contribute to the creation of a sustainable society.

● Expand into integrated business ﬁelds - Contribution to

the establishment of a sustainable society witha new style of electric power and energy● Enter the life-science business ﬁeld

Group's CSR Activities

owned by the Group, we are promoting R&D activities that can● Enter the resources business ﬁeld

Supply Chain
Human
Resources
Environmental
Preservation
SocialContribution

In July 2013, our joint project with Hokkaido Electric Power
Co., Inc. for the demonstration of redox ﬂow battery, on which
we have worked for about 30 years, was selected to be
subsidized by the Ministry of Economy, Trade and Industry.
This is one of the projects aimed at making eﬀective use ofphotovoltaic power generation and other renewable energy. In
the project, construction of a large-scale
system is currently underway to have a
rated output of 15,000 kW and storage
capacity of 60,000 kWh. As it can help
stabilize the power system in Hokkaido as awhole, I feel that our social contribution
through products has begun.
Our redox ﬂow battery will be used morecommonly on a global scale in the future.
We will continue to be committed to
R&D activities with pride that our
products are essential parts of theinfrastructure that underpins
society.

Products &ServicesManager, System Engineering Group, Engineering Department,
Energy System DivisionCore
Category

Toshikazu Shibata

Governance

We are proud that our products are
essential for infrastructure that isvital to people's life.

SEI CSR Report 201418

CSR Core Category

Supply Chain〈 CSR Priority Theme 〉

Promotion of
CSR Procurement
We are working to promote CSR
procurement activities in response tomarket expansion.
The Sumitomo Electric Group currently recognizes three dimensionsof market expansion in relation to material procurement:
geographical expansion; expansion of risk factors and other issues
concerning procurement activities; and expansion of procurement ofmaterials for new businesses. To respond to such changes, we set
promotion of CSR procurement as a priority theme for VISION 2017
and seek to strengthen the trustful relationships with our suppliers.

● Check eﬀorts to perform CSR activities in the domestic

suppliers under the control of our Procurement Division.
● Check eﬀorts to perform CSR activities in overseas

suppliers through international procurement bases of
our Procurement Division.
● Introduce the CSR procurement mechanism

established as mentioned above into Group companies.

We continue to give top priority totrustful relationships with our suppliers.
Yoshie Fujinuma
Itami Group, Procurement Division

In an eﬀort to promote CSR procurement, we conducted the ﬁrst
CSR procurement questionnaire survey in ﬁscal 2013 withcooperation of our main suppliers in Japan. I was in my ﬁrst year at
Sumitomo Electric and in Planning and Administrative Group of
Procurement Division at that time. I was able to learn many things
through analysis of the answers in the questionnaire.
Our suppliers are wide ranging from listed companies to small
factories with which we have had a long-termbusiness relationship, and their scales andbusiness forms are also diverse. In
consideration of the problems identiﬁed in
the ﬁrst questionnaire survey, I would like todevelop an original questionnaire tailored tothe characteristics of our supply chain.
At the present time, companies have to
make various CSR-related requests to their
entire supply chains while also performing
their own CSR activities. We willcontinuously give top priority to trustfulrelationships with our suppliers andmake eﬀorts to promote CSR
procurement.

SEI CSR Report 2014

19

CSR Core Category

Human Resources〈 CSR Priority Theme 〉

The Sumitomo Electric Group operates with more than 200,000
employees at approximately 380 companies located in roughly 40

Business Outline

Removing various barriers, we will
accelerate the globalization of
our human resources and organization.

Basis for Management

Promotion ofDiversity

countries all over the world. We have started to actively promote
globalization of the human resources employed in Group companies
part of the CSR activities but also a business strategy to maintainmarket competitiveness.

● Introduce a new HR system to show career

opportunities within the Sumitomo Electric Groupbeyond individual companies.

Group's CSR Activities

in Japan and overseas. We believe that globalization is not only a● Develop an institutional framework to identify● Develop common guidelines for both international andinter-ﬁrm mobility.

Mariko Nose

Supply Chain
Human
Resources
Environmental
Preservation
SocialContribution

To realize the Global HRM Policy, we introduced the Global Grading
System, which is to be commonly applied to the whole Group, inﬁscal 2014 so that employees can have a wide range of options forcareer opportunities on a Group-wide scale. As a ﬁrst step, we
identiﬁed 24 people who are board members or similar executive
position holders of overseas aﬃliates as our Group Global
Executives. We believe that they will play bigger roles taking various
opportunities.
Though I d had experience of establishing a new
HR system in Japan, the task to introduce a new
global HR system was very challenging
because it was a totally new type of initiatives
for our company. I therefore visited overseas
Group companies and held discussions to get
opinions from a wide range of people.
We have received many favorable comments on
this system, which encouraged both mymotivation and a sense of responsibility.
We will keep working to make it more
eﬀective, and seek to establish anenvironment where motivated andtalented people can play more activeroles irrespective of nationality orother backgrounds.

Products &Services

Global HR Group, Human Resources Department,
HR & Administration DivisionCore
Category

We are keen to
take on new challenges.

Governanceexecutives in group companies as Global Executives.

SEI CSR Report 201420

CSR Core Category

Environmental Preservation〈 CSR Priority Theme 〉

Prevention of
Global Warming
While making energy saving eﬀorts,
we also aim to lower the environmental impact
of products throughout their lifecycle.
The Sumitomo Electric Group considers that prevention of global
warming is a crucial theme because it leads to promotion of energy
saving activities and can also bring about business opportunities. We
are committed to development and improvement of energy saving
initiatives at domestic and overseas establishments, as well as
reduction of overall environmental impact of products throughout
their lifecycle.

● Develop the Action ECO-21 (Phase Ⅴ) campaign basedon the ISO 14001 environmental management system● Enhance eﬀorts to introduce energy saving initiatives

into overseas establishments● Strengthen our capacity to propose environmentallyconscious products to contribute to reduction of
overall environmental impact across society

Energy saving, which also helps prevent
global warming, is my lifework.
Akihisa Kontani
Plant Engineering Group, Manufacturing Department,
Sumitomo Electric Wintec, Inc.

We are performing energy saving activities to achieve not only
VISION 2017 but also an even higher target set to respond to therising electricity cost associated with shutdown of nuclear power
plants. After estimating the eﬀects of potential energy saving
measures, we prepare and examine a list of the measures and their
expected eﬀects to determine whether each of the measures should
be taken or not. Intangible energy saving activities, such as
switch-oﬀ of unused engines and increases inenergy eﬃciency through improvement of
manufacturing conditions, cannot bepromoted without cooperation of production
sections. We try to visualize the energy saving
eﬀects and encourage all staﬀ to cooperate,and have achieved signiﬁcant results.
We are also introducing the measures that havebeen taken in Japan into our plants in Indonesia
and other countries. While we haveregular meetings with the local staﬀ toreview their initiatives and follow up
the progress, proposals are often
made by the local staﬀ, and I feelthat they have acquired abilities
to take voluntary measures.
Energy saving is my lifework, andI will endeavor to be an expert.

SEI CSR Report 201421

CSR Core Category

Social Contribution〈 CSR Priority Theme 〉

Business Outline

We will promote long-term social
contribution in local communities evenmore and in a wider range of ﬁelds.

Basis for Management

Contribution throughOur Business Locations
and Foundation

The business activities of the Sumitomo Electric Group cover a vast
various stakeholders. In addition to social contribution throughbusiness activities, we will continue to make long-term social
contribution in a wide variety of ﬁelds.

● Develop social contribution activities thatmeet local needs

Group's CSR Activities

range of technologies, markets and business domains, which involve● Establish partnerships with● Continue long-term social contribution initiatives

Hiroshi Dote

Supply Chain
Human
Resources
Environmental
Preservation
SocialContribution

Four years have passed since I started working at Sumitomo
Electric. While I now take charge of various business tasks, I havealso been the captain of the company's men's sprint race team since
March 2014. Our team is steadily gaining a high proﬁle in the track
and ﬁeld world as the members achieve high rankings in the national
championship.
During winter, which is the oﬀ-season for our athletic club, weorganize an athletics workshop for junior highschool students four times a year. The workshop
aims to develop junior high school athletes, andI am very pleased to hear news that students
who attended it have shown great performancein national competitions.
A participant of the ﬁrst workshop, which washeld in ﬁscal 2008, is now 20 years old, working
for Sumitomo Electric performing brilliantly in ourathletic club. I am happy about the long historyof the workshop and the encounters
brought by it.
I would like to continue to contribute to
the future of children and the local
community through the workshop andvarious other activities.

Products &Services

Quality Assurance Section, Quality Assurance Department,
Sumitomo Electric Sintered Alloy, Ltd.

Core
Category

I want to keep running withthe local community.

Governancecommunity-based organizations

SEI CSR Report 201422

STAKEHOLDERAKEHOLDEROGUE
DIALOGUE

Fourth Sumitomo Electric Group Stakeholder Dialogue

On the Occasion of the Launch of
Initiatives for the New CSR Core Categories
The Sumitomo Electric Group sets ﬁve CSR priority themes. Among them, the three themes of promotion of diversity,
prevention of global warming and promotion of CSR procurement were selected as subjects forthe fourth Stakeholder Dialogue, in which the respective managers in charge of the themes at Sumitomo Electric
exchanged opinions with experts with outstanding knowledge on the themes.
■ Outline of the Stakeholder Dialogue■ Guests

Date: June 4, 2014 (Wed.)

Mr. Eiichiro Adachi

Venue: Osaka Works of Sumitomo Electric Industries, Ltd.

Counselor, The Japan Research Institute, Limited■ Schedule

Mr. Adachi specializes in socially responsible investment (SRI) and corporate social
responsibility (CSR). He has participated in various projects organized by the Ministry of theEnvironment, the Cabinet Oﬃce, Government of Japan, etc., and is mainly engaged inindustrial surveys and corporate evaluation from the perspective of CSR.

1. Factory tour

Professor Yoshinao Kozuma
Faculty of Economics, Sophia University

2. Presentation on
the background of
the review of
the CSR core categories

Prof. Kozuma specializes in environmental accounting theory and international accounting
theory. He has served as chair and member of CSR- and environment-related review
committees and study groups organized by Ministry of the Environment, Ministry of
Economy, Trade and Industry, Ministry of Land, Infrastructure, Transport and Tourism,
Ministry of Agriculture, Forestry and Fisheries, Cabinet Oﬃce, Government of Japan,
Japanese Institute of Certiﬁed Public Accountants, etc.

3. Exchange of opinions

Facilitator

Mr. Takashi Fukushima (President, Sustainability Accounting Co., Ltd.)
Participants from Sumitomo Electric

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

Factory tour

Exchange ofOpinions

Theme

N o b u y a O o o k a (General Manager, Safety & Environment Department),
Satoshi Maegawa (General Manager, Procurement Division),
Masahito Kasuga (Manager, CSR Promotion Oﬃce, HR & Administration Division)Commitment to the new CSR priority themes

Setting of the priority themes
Kasuga: Based on the new mid-term
management plan VISION 2017, which
was formulated in May 2013, we havereviewed the ﬁve CSR core categories toenhance the integration of CSR activities
with business activities. The new ﬁvecore categories are Products & Services, Supply Chain,
Human Resources, Environmental Preservation and Social

scale, the number of the overseas personnel appointed as
executives was not large enough. To improve this situation,
we established the Global Executives System in April 2014.
We then set up a grade called

GL (global leader)andappointed 24 oﬃcers and equivalents from overseas
subsidiaries other than those of listed companies. In terms ofpromotion of female workers, our Japanese sites lag behind
overseas ones. We focus on employment of excellent female
workers in the recruitment of new employees for main career
track in Japan.

Contribution. Products & Services is included to highlight our

Adachi: The companies that promotesocial contribution through the main business. For each of therecruitment of women can be divided

categories, a priority theme is selected (see P15). The priority

into those which have a deﬁnite purpose

themes for Human Resources, Supply Chain andand those which just follow otherEnvironmental Preservation are promotion of diversity,

companies to keep pace with the trend

promotion of CSR procurement and prevention of globalof the times. I think that the answer towarming, respectively.

the question why a company has to increase female workers
depends on the type of the business.

Promotion of diversity

Kozuma: The issues underlying the promotion of diversity arevery complicated. In addition to constraints in companies,

Nakata: We adopted the Global HRM

many factors generated by social systems prevent eﬀective

Policy as the Group's common policy touse of female workers. In a company with many overseas

be applied worldwide in 2011. While ourfacilities like Sumitomo Electric, I assume that working

business has been promoted on a global

conditions are diﬀerent between Group companies in many

SEI CSR Report 201423

Basis for Management
Business Outline
Group's CSR Activities
GovernanceCore
Category

minorities totally diﬀers from country to country, is yourcompany handling it on a global scale?

Products &Services

aspects. While the situation concerning women andPrevention of global warming
Supply Chain

Oooka: Our target for prevention ofemissions by 5% in ﬁscal 2017 from theon a global scale to obtain data, andﬁscal 2012 level. In the action planworked to share information between

established to meet this aggressive

diﬀerent companies beyond nationaltarget, we aim to reduce energy

borders and cultures. The Sumitomo

consumption per unit of sales by 20% in 5 years. While ourElectric Group will enhance the human resource recruitment

energy saving eﬀorts have consisted mainly ofsystem to promote diversity.

equipment-related initiatives such as introduction of energy

Kozuma: In EU, it is said that diversity

saving devices, we now recognize that issues related toshould start from executives. Japan lags

productivity such as poor quality and equipment failure are

far behind in diversity of executives.

all linked with energy saving. We plan to promote activities in

Promotion of it is crucial to promote

cooperation of various sections while sharing this recognition

diversity of the whole company. How iswith them.

the situation in your overseas Group
companies?

Adachi: To meet the target of increasing sales fromapproximately 2,200 billion yen in ﬁscal 2012 to 3,000 billion
yen in ﬁscal 2017, you need to increase sales by 40%. In thislocal staﬀ to executives in overseas companies more actively.

context, the target of reducing total emissions by 5% seems

A major principle in our global policy is that we provide

to be too aggressive. I wonder that the ﬁnancial prospects

workplaces where all the employees can work actively

may be inconsistent with the non-ﬁnancial prospects.

SocialContribution

Nakata: We have to encourage the promotion of appointing

regardless of race or gender. We will broadly and strongly

Environmental
Preservation

global warming is the reduction of CO 2

of male and female workers in our Group

Human
Resources

Nakata: We have surveyed the number

publicize this as a solid policy of our Group in humanresource management.

SEI CSR Report 201424

STAKEHOLDERDIALOGUE

Oooka: An aggressive target is necessary

Adachi: As the Sumitomo Electric Groupto remind our divisions of the need tohas diversiﬁed its business and engages

eliminate energy loss. Just trying to

mainly in B-to-B activities, the supply

balance out the manufacturing areas

chain is not visible from outside. I

with low energy eﬃciency is not enough.

recommend that purchased goods be

We aim to make them aware of this fact

clariﬁed ﬁrst and eﬀorts related to theto be thoroughly committed to energy saving activities.

procurement of them be presented together with any
problems in the upstream of the supply chain.

Adachi: I understand energy consumption per unit of sale isgreatly diﬀerent between business segments at present.

Maegawa: It would be ideal if ourThere must be diﬀerences between overseas factories as

Procurement Division could develop awell. It will be convincing if you also have a plan to change

database with such information collectedbusiness segments or improve overseas production sites within a cross-sectional manner. So far, we

low energy eﬃciency to raise their energy eﬃciency to the

only support divisions and operatinglevel of the mother factories in Japan.

companies in aiming at the same target
on a speciﬁc subject when promoting initiatives on a division

Kozuma: It is preferred to encourage
related suppliers to take such measures
at a similar pace. In addition, I would liketo point out that expansion of the sales

or operating company basis. I hope that we can eventually
collect basic data that are common among the divisions andanalyze them at the Procurement Division to prepare acomprehensive report and give feedback.

of existing environmentally conscious
products that can help reduce CO 2
emissions may be more eﬀective in contributing to preventionof global warming.
Oooka: We do have environmentally conscious products that
can help customers save energy, reduce waste and improve
productivity. Many of our products are parts, and we aremaking eﬀorts to raise the ratio of sales of suchenvironmentally conscious products. Nevertheless, we havecalculated the contribution to reduction of CO 2 emissions
only on some of our products.
Kozuma: Sales and reduction targets should be set even if

Overall CSR activities
Kozuma: I can see that cross-sectional operations are
increasing rapidly in addition to independent duties of eachsection. You will be facing such challenges as how these
operations should be managed, who should control themand how they should be coordinated.
Adachi: I believe such issues on CSR governance are common
challenges for Japanese companies.

they are rough ones. I think your factories, which have lots of

Kasuga: The CSR Committee chaired by the oﬃcer in charge

basic technologies, are ﬁlled with hope.

of human resources and administration holds a meeting twice

Oooka: Thank you. There are still diﬀerences in awareness insome divisions. We will focus on the areas where the eﬀorts
have been insuﬃcient in order to achieve results.

a year, which has been joined by staﬀ from each division
since the last meeting. Participation of divisions means
participation of all of the organizations under them, whether
in Japan or other countries. Our future challenge will be how
we involve the whole Group and all employees in our CSR

Promotion of CSR procurement

activities.

Maegawa: We request suppliers tocomply with our CSR procurement
guidelines. As we did not know how
much the guidelines were actuallyfollowed, we surveyed suppliers todetermine the situation in ﬁscal 2013.
While we conducted a questionnaire survey of 122 main
suppliers under the control of our Procurement Division, weplan to expand the scope to cover around 900 suppliers withwhich we have continuous business each month in ﬁscal
2014.

The dialogue was very fruitful withadvice from the two experts
concerning three of the CSR priority
themes established last year basedon VISION 2017. We will make useof the advice about the challenges
for our CSR activities. At the sametime, we will discuss how we should

Yoshitomo Kasui
Chair ofthe CSR Committee
Managing Director

Kozuma: I suggest you consider the objective of such surveys

address the cross-sectional

as well as the objective of supply chain management andoperations, which are increasing as our business

review the results to improve the accuracy of the survey. It is

activities are globalized, in the approach to the CSR

important to continue questionnaire surveys and feed backgovernance of the whole Group. This is a common

the results into the current supply chain management tochallenge for all of the themes.

constantly check the progress.

SEI CSR Report 201425

After the Stakeholder Dialogue

Corporate Governance

Unit System, which resulted in transfer of authority on

We have one outside director and three outside corporate

business execution to individual business units and in theauditors with no business relationship with our company.

clarification of their responsibilities. Through these measures,

Sumitomo Electric has selected an independent outside

we reduced the number of directors to accelerate decision

director to further enhance the supervising functions of the

making on business management and improve supervising

Board of Directors with an external viewpoint and to improvefunctions in business activities by selecting an independent

the transparency and objectiveness of the management. We

outside director.

have also appointed independent outside corporate auditors

We also enhance the auditing functions of corporate

with expertise in various fields and a multifaceted

auditors. We selected independent outside corporate

perspective. To reinforce the monitoring system that ensuresauditors with various specialized knowledge and multifaceted

lawful and proper management of our company, suchviews for the majority of the corporate auditors.

corporate auditors represent the majority of the Board of

Business Outline

We adopted the Executive Officer System and the BusinessOutside Directors &Outside Corporate Auditors

Basis for Management

Basic Structure of Corporate GovernanceCorporate Auditors.
These independent outside officers provide useful opinions

The Company holds monthly meetings of the Board ofoccasions.

from an independent standpoint at board meetings and other

Directors, which comprises 14 directors, as well as
extraordinary meetings when necessary. The meetings
deliberate and take decisions on execution of importantbusiness with the President as chairperson because theposition of chairman of the Board of Directors is vacant. Prior
deliberation a management conference is convened to
discuss important subjects.
Directors (13 persons, excluding the outside director)
received 755 million yen in total for fiscal 2013. The businessactivities based on the decisions taken at the Board of
Directors meetings are executed promptly by individualin charge of the Corporate Staff Group under the President. In
addition, to establish an internal check function in its

promote control in the Corporate Staff Group. Under theirpolicy, guidance and support, we promote development andproper operation of the internal control system in eachdivision and affiliate in accordance with the Financial
Instruments and Exchange Act, as well as the assessment andaudit criteria and enforcement criteria specified by the
Financial Services Agency. Thus, we are committed to further
improving the systems to ensure appropriateness of financial
reporting.

scope of authority of individual business units and persons incharge of certain business activities, and has stipulated

Sumitomo Electric Group's corporate governance structure

appropriate business procedures. As to the gender of the

Products &Services

corporate regulations, Sumitomo Electric has clarified theCommittee, chaired by the President, and an organization toCore
Category

general managers as well as directors and executive officers

We have established the Financial Reporting Internal Control

Governanceto meetings of the Board of Directors, to facilitate the Board's

System to Ensure Appropriateness ofFinancial Reporting

Group's CSR Activities

Business Execution System

General Meeting of Shareholders

directors, all of them are male.

Appointments / dismissals

Board ofDirectors

Sumitomo Electric receives three types of audits, namely
corporate auditor audits, internal audits and accounting
audits, to ensure the legality and appropriateness of its

Management
Conference

Audit

President

Accounting
Audit

Board ofCorporate
Auditors

Corporate
AuditorsCo
Aﬃliates in Japanand Overseas

inspect the performance of Board members in business

R&D General
Managing UnitAﬃliates in Japanand Overseas

Production UnitsAﬃliates in Japanand Overseas

execution, making use of staffs to corporate auditors (Officeof Corporate Auditors).
The Board of Corporate Auditors establishes audit plans andCross-Sectional
Risk Management
Activity etc.

fulfills his role, as assigned by the Board of Corporate

Risk Management Committee
Compliance Committee
Corporate
Staﬀ Group

Corporate Environment Committee

including those of the Board of Directors, conduct hearings

Information Management Committeewith the directors, Internal Auditing Department and other

CSR Committee

important authorization documents, and visit majorestablishments to conduct audits. Corporate auditors also
receive reports from other auditors regarding their audit

Audit

Internal
Auditing
Department

SocialContribution

relevant divisions regarding their performance, inspectteEnvironmental
Preservation

policies, in accordance with which each corporate auditor

era

Human
Resources

corporate auditors, three of whom are outside auditors,

Sales Units

Specifically, corporate auditors attend important meetings

Accounting
Auditors

Cooperateopbusiness management. In the corporate auditor audits, five

Auditors.

Supply Chain

Auditing and Supervision Systems

status, and exchange information with the accounting auditor
when required.

SEI CSR Report 2014

26

Risk Management
Basic Approach

Risk Management Activities

The Sumitomo Electric Group identifies, analyzes and assesses
business risks, which include the factors that prevent theimplementation of its business activities or achievement ofmanagement goals and strategies, as well as the factors that
potentially have adverse impact, and then seeks to reduce andminimize them at a reasonable cost and with reasonable
efforts.
With respect to cross-sectional risks common to all divisions
and affiliates in the Group, the relevant corporate staff
divisions, as well as company-wide committees organized bydirectors in charge of the related sections, identify, analyze andassess the risks according to their duties, and then takemeasures 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.
Upon risk management, the significance of the risks isdetermined in consideration of the following issues:

Risk management activities of the Sumitomo Electric Group arebased on taking inventory of risks that is conducted by each
unit and each affiliate every year. We survey and analyze
significant risks and the risks that need to be addressed withadditional measures in each division/affiliate, as well as
common risks across the Group, and promote planning andimplementation of measures to cope with the risks. Annual
results of risk management are shared with executives and thecorporate staff divisions. With mutual cooperation between
them, group-wide risk management activities are promoted
steadily.

●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

Risk Categories
Major category Middle category

Non-ﬁnancial
risk

Externallygenerated
Financial
risk
risk

Strategic risk●

Continuous compliance with laws and corporate ethics●

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

Minor category● Disaster risk, crime risk
● Political and country risks etc.
● Credit risk
● Market risk; e.g. interest rate,exchange rate and material prices,and liquidity risk, etc.
● Competitive strategy risk etc.
● Product quality and safety risks● Occupational hazards,

facility accident and safety risks● Environmental risk

Internallygenerated Operational
risk
risk

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

Risk Management System● Reputational risk etc.

The Sumitomo Electric Group has set up the Risk Management
Committee as an organization to control overall risk
management activities, and holds its meeting in conjunction
with a meeting of the Management Conference. The Risk
Management Steering Committee, which has been founded asa subordinate body, is in charge of formulation of risk
management policies and planning and organization of risk
management education, as well as establishment of task forces
and collection of information at the time of an emergency. The
Risk Management Office serves as the organizer for thesecommittees.
In addition, a risk manager is appointed in each division andaffiliate to promote various risk management activities including
development of risk inventory and periodical review of thebusiness continuity plan, in addition to improvement of thesystem to send information at the time of an emergency.

Board of Directors

Company-wide
Committees

Management Conference

CSR Committee

Risk Management Committee

Public Relations
Committee

Risk Management Steering Committee

Corporate Environment
Committee

Risk Management Oﬃce

Financial Reporting
Internal Control Committee

Corporate Staﬀ Group
Risk manager

Legal, Public Relations, Accounting, Information Systems,
Procurement, Logistics, Safety & Environment,
Plant & Production Systems Engineering

Business Units, Sales Units,
R&D General Managing Unit

Divisions

SEI CSR Report 201427

The direction of risk management is discussed repeatedly at
the Risk Management Committee. We examine and takespecific measures to meet the following targets, in addition toconventional initiatives:① Enhanced coordination between business activities andrisk management② Arrangement of monitoring functions③ Enhanced response to global risks④ Higher awareness of risk management⑤ Stronger risk management baseWe will make continuous efforts to develop a more effective
mechanism to respond to expansion of our business fields andchanges in the external environment.

Initiatives for Business Continuity

Risk Management System

Risk manager《 Strengthening of Risk Management 》

Risk manager

Aﬃliates
Risk manager《 Revision of Business Continuity Plans (BCPs) 》
As part of the Company's risk management efforts, Sumitomo
Electric has developed Business Continuity Plans (BCPs) since
fiscal 2007 to ensure that our important businesses can becontinued even in the event of an emergency, such as anearthquake and pandemic of influenza, and that we can swiftly
resume operations when our operations are interrupted. The
BCPs are periodically reviewed every fiscal year.
While we used to focus on preparation for earthquakes in thedevelopment of BCPs, we have been working to establish more
fundamental BCPs in preparation for all types of critical events(other large-scale disasters and accidents, etc.) in line with the
new guidelines published by the Cabinet Office of theJapanese Government since fiscal 2013.
In the periodical review of BCPs, we also verify theeffectiveness of the emergency response plan and takeSecurity Trade Control

Record of Various Training Sessions in Fiscal 2013

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

Tasks on how to classify
goods and technologies

Export control
sections

13299

Export control practiceGeneralemployees

19

501

Outline of export control
and internal rules

Domestic
aﬃliates

2

55

Outline of export control

Overseasaﬃliates

11276

Outline of export control
and issues to be noted inforeign countries

Intellectual Property Protection

SocialContribution

Sumitomo Electric seeks protection of the company's own
technology by proper management of technical know-how, as
well as acquisition of the intellectual property rights (IPRs) suchas 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
Convention every year to commend the strategic applications
that are highly expected to contribute to our businessperformance as well as the cases that have effectively utilized
IPRs to greatly improve business results. We also organize
in-house training programs that match the experience and levelof proficiency of each employee, and publish the company
magazine IP news five times a year.
Moreover, we promote 1) analysis of the rights owned by
Sumitomo Electric and other companies, 2) IPRs application
based on the business plan or safeguarding know-how against
disclosure and 3) countermeasure to IPRs of other companies,
through concerted efforts among respective divisions, R&D
units and the intellectual property department at IP strategy
meetings or IP committees of each division. In recognition ofthese efforts to develop an intellectual property management
system aimed at establishing and executing our intellectual
property strategy, we received FY2013 Intellectual Property
Achievement Award.

Environmental
Preservation

Sumitomo Electric regards internal information including trade
secrets as important management assets and has establishedthe Information Security Policy. In accordance with the revisionof this policy, we provide education for all employees every
year to ensure their awareness of it.
Our information security measures include data encryption in
USB devices and laptop computers, as well as a system toprevent the use of file sharing software and other prohibited
software. In fiscal 2013, we renewed the system for safe andsecure delivery of large files, and also began to address thestrengthening of information security with IT staffs of overseas
affiliates globally.

133

Human
Resources《 Information Security Measures 》

22

Supply Chain

As to the personal information of customers, business partners
and employees handled in the course of its business, Sumitomo
Electric declares that it will observe laws, regulations and otherrules relating to the protection of personal information, and will
establish, implement and maintain voluntary rules andframeworks. This is stipulated in our Personal Information
Protection Policy, which was established in fiscal 2005. To
effect the above declaration, the Company also set forth the
Personal Information Protection Rules. Through employee
education programs and other means, the Company has
worked to develop and improve the in-house system forpersonal information management.

Staﬀ in chargeof classiﬁcation

Products &Services《 Protection of Personal Information 》

Main content

Core
Category

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

No. ofNo. ofsessions participants

Governance

Strengthening of
the Information Management System

Target of
the training

Group's CSR Activities《 Cooperation with Local Communities 》《 Continuous Implementation of Group-wide Joint Emergency Drills 》

Business Outline

The Sumitomo Electric Group enhances disaster awareness of
employees by checking the initial reaction and confirming thesafety of employees twice a year (in the daytime and at night).
Our production facilities carry out evacuation drills, inspectionof places where hazardous materials are used and simulationof emergency measures. In the meantime, headquarters ofcountermeasures also implement drills of informationtransmission and sharing with the aims of acquiring and sortingout disaster information swiftly in a disaster situation to report
it accurately and promptly to executives, and of sharing
disaster information among the Group.

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

Basis for Management

inventory of supply chain risks. In addition to the periodical
review, a table top exercise that simulates the BCPs of specificdivisions and affiliates is organized with relevant persons to
examine any problems and reflect the results on the business
continuity strategy.

SEI CSR Report 201428

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

Compliance Committee
The Sumitomo Electric Group has established the Compliance
Committee, chaired by the President, as an organization that
promotes measures necessary to develop and further
strengthen the compliance system. The Committee engages invarious activities, including preparing and distributing theSumitomo Electric Group Compliance Manual and organizing
compliance training seminars. In addition, the Committee
identifies and analyzes group-wide compliance risks,disseminates preventive measures and monitors thecompliance activities implemented by each division andsubsidiary. In fiscal 2013, the Committee held four meetings(May, August and November 2013, and March 2014).

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

SEI CSR Report 2014

29

Electric Group Corporate Principles and the Sumitomo ElectricGroup Charter of Corporate Behavior. We distributed thismanual to employees in Sumitomo Electric as well as those inits subsidiaries in Japan.

Compliance Education
To check compliance risks, ensure implementation of
preventive measures and develop and enhance awareness ofcompliance, the Compliance Committee organizes regulartraining seminars for all officers and managers every year. New
employees and newly promoted personnel are also provided
with training seminars. In fiscal 2013, instead of regular training
seminars held for managers every year, compliance special
training seminars were organized for main career track andgeneral track along with managers on the subjects ofcompliance with competition laws and prevention of bribery.
These seminars were conducted in response toacknowledgement in December 2013 that an employee at
Sumitomo Electric engaged in cartel activities concerning theorder for construction of overhead transmission lines received
from Tokyo Electric Power Company, Inc., which was operated
in the form of an ordinary joint venture.
In fiscal 2013, compliance training seminars were held asshown in the table below.
TargetPeriodOﬃcers (including executive oﬃcers)

Dec. 2013

Managers, main career track, and general track of
Sumitomo Electric and its subsidiaries in Japan

Feb. - May 2014

Newly promoted personnel

Feb. - Mar. 2014

New employees of Sumitomo Electric

Apr. & Oct. 2013

Speak-Up System
We have established the Speak-Up System, which enables
employees to directly report and consult on potential
compliance-related issues, so as to identify and resolve such
issues by ourselves at an early stage. In addition to theCompany's compliance staff, a law firm has been appointed as
an external contact in the Speak-Up System. To address issues
reported through this system, the Compliance Committee
swiftly conducts investigation and takes necessary action.
Sumitomo Electric instructed Group companies in Japan toestablish their own in-house consultation contacts. At thesame time, Sumitomo Electric positions its external contact as
the one for the entire Group. We are working to disseminate
the Speak-Up System to employees through monthly in-housemagazines.

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

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

Anti-bribery Course
From Apr. 2013 to Mar. 2014
(Continuing)

Total number ofseminars

98

17

No. of participatingcompanies

137

91

No. of trainees

1,550

113＊

SocialContribution

Competition Law Basic Course
From Oct. 2011 to Sep. 2012

Environmental
Preservation

Sumitomo Electric introduced an anti-bribery program in
April 2013 to enhance its anti-bribery compliance systemon a global scale. This program has established rules onbribery-related issues, including ban of bribery, as well as ex
ante approval and ex post report on gifts, donations andoﬀering entertainment, in the Anti-bribery Compliance
Regulations in response to the recent tightening of regulations

Results of Overseas Compliance Training Seminars

Human
Resources

Anti-bribery Measures

Supply Chain

Training seminar at an overseas aﬃliate in Asia

Products &Services

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

Core
Category

４. Establishing action guidelines forcompetition law compliance

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 set up a global e-learning system andlaunched training programs for employees in overseas
subsidiaries.

To develop a Group-wide compliance system on a global scale
based on a wide concept including compliance management,
corporate ethics and the Sumitomo Spirit, Sumitomo Electricorganizes visits to affiliates to provide compliance training
seminars for top executives and local managers of overseas
affiliates.
Our staff visited our main overseas offices and organizedcompliance seminars designed for local managers of overseas
affiliates, which included Basic Course Seminars (from April
2008 to September 2009) and Advanced Course Seminars(from January 2010 to June 2011), with the aims of instillingthe awareness of compliance and creating a sense of unity as amember of the Sumitomo Electric Group. We also send thetraining materials, attached with the CD recording of thelectures in the previous seminars, to overseas affiliates, which
include the companies that we could not visit due to theschedule or for a geographical reason, so that such affiliates
can arrange compliance training programs in a voluntary andcontinuous manner.
In addition, we organized Competition Law Basic Course
Seminars from October 2011 to September 2012, which
specifically focused on competition laws, and have also
provided Anti-bribery Course Seminars as part of theanti-bribery measures mentioned above since April 2013.
We will continuously
endeavor to further
improve the compliancesystem of each overseas
affiliate throughcooperation with therelevant divisions andother organizations.

Group's CSR Activities

３. Enhancing and continuing compliance law training

Developing the Compliance Systemamong Overseas Group Companies

Business Outline

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

on bribery of domestic and foreign public oﬃcers in the US,
Europe and emerging markets. One Bribery PreventionOﬃcer and one Bribery Prevention Manager are also
appointed in each unit to build a system to apply the rules.
The anti-bribery program, which has been conducted formore than one year, is operated smoothly under the
initiative of the Bribery Prevention Manager at each division.
Our main subsidiaries in Japan have also introduced theprogram, and we are now promoting the adoption inoverseas subsidiaries. As the legal system, standards,
customs, etc. are diﬀerent between countries, we act in a
careful manner in other countries even more than in Japan.
The special training sessions (including lectures by local
attorneys) are also scheduled for the Bribery Prevention
Managers in the respective countries in 2014. 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.

Basis for Management

２. Forming dedicated organizations andestablishing an auditing system＊ Exclusively for the Bribery Prevention Managers

SEI CSR Report 201430

Research & Development

Promoting research and development withdue consideration for the future andcreating innovative technologies and productsTechnology 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.

Core Category

Products &Services

We will continue striving to create new technologies andproducts with due consideration of future social needs, andfurther accelerate our commercialization of technology inresponse to this time of rapid change.

Priority Theme

Receiving Thomson Reuters
Top 100 Global Innovators Award

Innovation

Sumitomo Electric received Thomson Reuters Top 100
Global Innovators Award in 2013, which was thesecond time following 2011.
This award is given to 100 companies that arevigorously working on innovative developments, arecommitted to protection of intellectual property rights
and have generated globally influential inventions.
Using strict analytics and objective data, Thomson
Reuters analyzed patent activities to select theworld s most innovative companies. The four criteria
for selection are: Success rate (the ratio of granted
patents to patent applications), Global reach (patentportfolio in major world patent offices), Influence(the patent impact determined by the citation

Main Targets for Fiscal 2013
Reduce complaints by 26% from the previous ﬁscal year
Continue to promote own process quality assurance
activities (fourth year)●

Continue activities based on important themes at each division●

Develop the activities on a global scale●

Improve the improvement process●

frequency during patent examination) and Volume(the number of innovative patents).
The Sumitomo Electric Group has been pushing ahead
with development of new products and businesses
that will contribute to the progress of society, in

Raise the assurance level: enhancement of checking stations(measuring techniques), foolproof mechanism

Results in Fiscal 2013
Reduced complaints by 16% from the previous ﬁscal year

accordance with the following principles: Attachingimportance to technology, and Building technicalexpertise, realize changes and strive for consistent
growth. Our efforts have resulted in many ingenious
products, such as superconducting cables andPerformed theme-based activities (107 themes in the ﬁrst
half and 123 themes in the second half) at each division,
expanded the activities into overseas facilities, mainly in
China (3 sites), and enhanced the improvement process at
8 sites in Japan through examination of the approach to
reduce in-process defects.

semiconductor materials for green lasers. We believe
this recognition is due to the collective effort of theSumitomo Electric Group. With our superb creativity,

Main Targets for Fiscal 2014

we at the Sumitomo Electric Group will continue toReduce complaints by 18% from the previous ﬁscal year

develop original, excellent technologies, anticipatingsocial changes and technological trends.

Continue to promote own process quality assurance
activities (ﬁfth year)●

Continue activities based on important themes at
each division① Determination of defect-free process conditions,② Maintenance of defect-free process conditions,③ Pursuit of defect-free process conditions●●

Number of Patents Year by Year
(Number of patents)
8,000
7,000

Accelerate introduction of the activities into
global facilities

6,000

Develop the examination of the approach to
reduce in-process defects

4,000

6,292

6,337

6,341

6,440

5,000
3,000

4,525

4,804

4,894

2009

2010

5,411

6,651
6,225

6,989
6,765

2,000
1,000
0

2008

In Japan

2011

2012

2013

(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.
● A total of 24 companies including Sumitomo Electric and
its Group companies are covered.
●●●

SEI CSR Report 201431

Basis for Management

Research and Development Themes for the Next Generation

Business Outline
Group's CSR Activities
GovernanceCore
Category
Products &Services
Supply Chain

Continue investment in integrated
and new business ﬁelds in addition
to current business ﬁelds(Approx. 80 billion yen/year)

VISION 2017:
Approx. 450 billion yen in total

943
866

900

VISION 2017
Annual average
900

790

730
647
600

300

0

2008

2009

2010

2011

2012

2017 (Fiscal year)※VISION 2012 Mid-term management plan for FY2008-2012※VISION 2017 Mid-term management plan for FY2013-2017

SocialContribution(Approx. 90 billion yen/year)

VISION 2012
Annual average

Environmental
Preservation

VISION 2012 :Approx. 400 billion yen in total(Unit: 100 million yen)

1,200

Human
Resources

Research andDevelopment Expenditures

SEI CSR Report 201432

Products and Technologies That Help Solve Social Problems

Too Create
C eate So
Socieietyy with a New
ew Style ofElectric Powerower and Energy

Create Concentrator Photovoltaic (CPV)
System

A next-generation photovoltaic power generation system

1. Efficient system with high power output performancesuitable for high temperature environments
The CPV system uses compound semiconductor power generation
elements with very high power generation eﬃciency, and directly collects
sunlight with the lens as it accurately tracks the sun. The system boasts
power generation eﬃciency about twice as high as that of a typicalcrystalline silicon cell. As the power generation element has little
temperature dependence, this system is highly eﬀective in regions withhigh direct radiation and high air temperatures.

Safety for all areas
Convenience forpeople's life

2. Efficient use of the installation area
As the CPV modules are mounted on the sun tracking frame, the space
under the module can be used for parking, ﬂowerbeds or farming.

Create Power Line Communication (PLC)-Based

Real-Time Mega-Solar Monitoring System

A low-cost system that accurately monitors solar panels forgenerated electricity in real time and can also be installed easily

1. Requiring no additional wiring for communication
In the power line communication (PLC) technology which is employed in
the system, high-voltage DC power cables are used as a communication
medium, and no additional wiring is required.

2. Usable with existing mega-solar systems as well as new ones
The sensors, slave units, etc. can be easily added to an existing system.

3. Resistant to noise and lightning surges
This system can transmit information
accurately even in a heavy noise
environment generated by high-capacity
power conditioners, and is fully protectedfrom lightning surges.

Current
sensorSignalconnection

４. Outperforming other systems in cost
Using PLC, the system requires no additional
wiring for communication purposes. No
dedicated AC power lines need to be installed
either since power required for operation is
supplied from the solar power line.

SEI CSR Report 201433

PLC slave unit
PLC terminal installed in
an existing connection box

Advanced energy systemthat ensures stable power
supply with no momentary
voltage drop orelectricity outage

New style of electricity
that is friendly to the earth,society and peopleSocial challenges

Social expectations ⇒ Realizing 3 values● Prevention of global warming● Insuﬃcient power supply capacity following

the nuclear power phase-out
economic development in emerging countries● Increased interconnection of electric powerand energy systems in Japan(Strengthening of systems to deliver
the increasing amount of power generated
with solar energy, wind, etc. to urban areas)● Maintenance of power and2．Improvement and maintenance of power quality
Supply electric power with stable quality suitable forthe power use conditions and needs of customers

3．Maintenance of security
Establish a disaster- and crisis-resistant power supply
system to support the safety of life

Transmit PPLP™-

Business Outline

energy supply at the time of a disaster

Lower environmental impact by making maximum useof renewable energy and introducing technology that
improves power usage eﬃciency

Basis for Management● Insuﬃcient power supply capacity as a result of

１．Reduction of environmental impact＊

MI DC Submarine Power Cable

1. Optimal for long-distance power transmission
Using paper impregnated with high-viscosity
insulating oil, longer distance powertransmission is made available because oil
feeding equipment that is mandatory for oil
ﬁlled (OF) cable systems is not needed.

GovernanceMore prosperous life
where more people
save power and energy
unconsciously

2. Available for high-capacity
power transmission

Core
Category

The conventional insulating kraft paper was
replaced with PPLP™ developed by Sumitomo
Electric as the insulating paper, which allows
high-capacity power transmission.

Redox Flow Battery

Supply Chain

A storage battery that charges/discharges through oxidation-reductionof vanadium or other ions. This technology,
which stabilizes the system, is essential for the expanded use ofrenewable energy such as solar energy and wind.

Products &Services

Store

Group's CSR Activities

High-capacity power cable that can transmit electrical power overa long distance to support offshore wind power plants as well asinternational transmission networks and other next-generation grids.

1. Easy maintenance and a high level of safety
Vanadium ion electrolyte is non-combustible and can be operated atambient temperatures, and these features provide greatly increased
safety and are suitable for a battery for the electric power system.

This battery features long service life as the electrodes and electrolyte
are not subject to deterioration even after repeated charge/discharge
operations. It can be also reused or recycled.

Human
Resources

2. Long service life

3. Accuracy
The stored electric power can be monitored and controlled accurately.

用語 ＊MI cable
解説 Mass Impregnated Paper Insulated Cable

The battery is adaptable to diﬀerent sizes, ranging from small andmedium systems to high-capacity ones, by adjusting the amount of theelectrolyte.

SocialContribution

Ensuring safe, secureand stable power supply
every day

4. Adaptability to various sizes

Environmental
Preservation

Supp of high-quality
Supplyelelectrical powermmore efficiently

SEI CSR Report 201434

Product Quality & Product Safety

In the Sumitomo Electric Group, each division/company has
developed and evolved its original quality assurance system
tailored to the features of its various products. While
respecting such efforts, the Quality Management Division
established the Sumitomo Electric Group Quality Management
Global Standards, which summarize minimum requirements forthe quality assurance system to maintain the quality levelneeded for the Sumitomo Electric brand, in February 2013.
In a company-wide quality improvement activity called the
QR-1 campaign, we promote and focus on three aspects: own
process quality assurance activities,
global quality
management system audits and quality management
education, while encouraging our divisions and Group
companies to develop their own quality assurance systems inaccordance with the standards mentioned above.

Three activity areas of Own Process QA
Design and Development
Plan

Product
DesignProcess Design
MP preparation

Prevent to produce / pass defects:Product/Process/Machine design

Development of QR-1 Campaign
We have promoted this company-wide campaign for
the improvement of quality and reliability since 1975

Design Degree of QA

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

Set up Defect-Free
Conditions

Own Process Quality Assurance Activities
Aiming for Zero Complaints
We are introducing the assurance level assessment andefforts for improvement into overseas sites as well
In Phase Ⅴ of the QR-1 campaign, which was launched in fiscal
2013 to be carried out for two years, we also promote own
process quality assurance activities to prevent defects frombeing produced or passed down to the following process ineach process. These activities are maintained in our divisionsand Group companies, which manufacture various types of
products, including overseas facilities.
Banner for
the QR-1
Campaign

Process

Process

Produceno defect

Produceno defect

Pass
no defect

Good
products

Pass
no defect

Good
products

Shipment

Inspection
Good
products

Each division/Group company is committed to its important
themes on own process quality assurance. The Quality
Management Division also works for initiatives to promote suchactivities as support on the important themes, practitioner
training education, organization of exchange meetings withleading units and publication of booklets introducing goodpractices.

SEI CSR Report 201435

As the concept of quality assurance level, which wasintroduced as an indicator for the progress of improvement
activities has also been disseminated, we can deploy andevaluate our activities in the more quantitative way now.
We have addressed the quality defects that are currently
generated with focus on pursuit of defect-free conditions toprevent defects from being produced or passed down to thefollowing process. In addition to these conventional efforts, wewill be committed to maintenance of defect-free conditions,which underlies such efforts, as well as determination of
defect-free conditions at the stage of developing the products
and manufacturing methods, which are their sources, in order tofurther enhance the quality assurance activities.

■ Initial Control(Improve APQP
system to prevent
defects)

Mass production

Control plan

Basic Approach

Initialproduction
control

Day-to-day
management

Don't produce / pass defects:Process control and
Improvement

Conceptof OPQA

Maintain &Improve Degree of QA

QA network

Maintain Defect-Free
Conditions
Defect-free
conditions& criteria

QFD, Design/
Process FMEA,
DRBFM● Robust design(Quality Engineering)● Error prooﬁng
system
● Utilize past trouble●■ Process Control

Standard
compliance● Change event
control● Abnormality
control■ Equipment Control

Operator
maintenancePreventive
maintenance● Kaizen fromQA check●●●■ Training

Defects
Feedback
to design

Complete DefectFree conditions

Collaborate withdesign, engineeringand production■ Improvement (Investigate root cause)

PDCA cycle to establish
Defect-Free Conditions

8 STEP method for quality improvement
Zero complain and defects project●

We will continue these own process quality assurance
activities on a global scale in fiscal 2014.

Activities to Enhance Quality AwarenessWe seek to share and enhance awareness throughinspection of manufacturing sites by the top management
and commendation of excellent divisions and individuals
We are encouraging all employees to understand the top
management's thoughts on quality and thereby raise their own
quality awareness. To this end, Sumitomo Electric heldgroup-wide Quality Management Conventions on May 31 andNovember 15, 2013. And we display banners for the QR-1
campaign with slogans on quality management. In the Quality
Month (November) every year, each of our Works displays
quality-related ﬂags and posters. Messages from the President
are disseminated through in-house magazines, in-plantbroadcasting and other media every half year (April andOctober), and inspection of manufacturing sites by the top
management is organized as part of our awareness raising efforts.
Sumitomo Electric also established Quality Achievement Awards
to commend divisions implementing activities that set a goodpractice for other divisions,and individual employees
who have created excellent
posters and slogans thatencourage awareness ofquality improvement at theQ u a l i t y M a n a g e m e n t Quality Management Convention
Conventions.
in November 2013

Global Quality Management System Audits
We conducted audits of 57 Japanese bases and10 overseas bases by fiscal 2013
in light of the Sumitomo Electric Group Quality Management

training programs at the SEI University based on the idea

Global Standards from the perspective of customers, as wellthat development of the operational capabilities of individual

as to improve weaknesses of their quality management

employees is essential to improve and ensure the quality ofsystems, we are systematically conducting global quality

products and services at higher levels. At the beginning ofmanagement system audits

every fiscal year, we make annual education plans andbusiness unit. In the global quality management systemprovide position-based education for all employees,

audits, we identify weaknesses of each unit in terms offunction-based and administrative-position-based education

management, design, manufacturing and mother factory

according to divisions or positions, and needs-based

function to provide an opportunity to improve its quality

education to learn knowledge.

assurance system, and support to overcome the weaknesses.

We have also introduced many quality management

Since the start in fiscal 2010, the global quality management

education courses into practical training programs for

system audits have been conducted at 57 sites in total. Ourd e s i g n a t e d p e r s o n n e l , s u c h a s M K P＊ a n d G K P＊, a n dmain facilities in Japan are currently undergoing the second

enhanced all employee quality management education as

round of the audits. The audits are repeated with the aim ofwell as education programs based on job experience and job

promoting continuous improvement of the quality assurancefunction in order to cultivate the culture of Quality First.

system. Overseas, after taking preliminary measures such as

Furthermore, Sumitomo Electric has dispatched instructors tocreation of an audit check sheet in Chinese and English andrelevant departments upon request, to deliver

on-sitereview of the auditing scheme including follow-up activities inseminars to teach how to make use of quality control tools

partnership with the mother companies, we conducted theand improve the ability to identify problems and real causes.

audits in a total of 10 sites in China and Southeast Asia.

In the education of overseas personnel, we organize

To promote the introduction of the Group Quality

exchanges of information on model cases and provide

Management Global Standards, we will continue to checktraining sessions on own process quality assurance activities

progress in compliance with the standards through global

in the course of the Key Person Development Program and at

quality management system audits.

in the main bases of each

Human Resource Development Committee in China.
In fiscal 2013, a total of 3,772 persons, including overseas
employees, completed quality management education
the programs after fiscal 2010, in which we started

We will continue to make steady efforts toeliminate complaints

restructuring quality management education, has reachedThanks to our ongoing quality management activities, the12,638.

number of complaints has been decreasing every year. In

Products &Services

programs. The total number of the persons who completed

Outcomes of the Quality Management Activities

Core
Category

the meetings of Quality Management Work Group of theGovernance

The Sumitomo Electric Group has provided employees withGroup's CSR Activities

In order to evaluate the quality control activities of the units

Business Outline

A total of 3,772 persons all over the world completedquality management education programs in fiscal 2013

Basis for Management

Enhancement of
Quality Management Education

fiscal 2007 we began to collect data on a global scale
including data from overseas affiliates, and the number ofSupply Chaincomplaints has declined by about 70% from the figure infiscal 2007. However, there are still many issues to be
improved to eliminate complaints.
Number of Complaints by Year (results in 2007 = 100)
100

Human
Resources

100

90
80

67

70
60

54

50

50

49
36

40

31

20
10
0

Meeting of Quality Management Work Group of
the Human Resource Development Committee in China in August 2013

2007

2008

2009

2010

2011

2012

2013 （Fiscal year）(Note) The data cover Sumitomo Electric and its manufacturing aﬃliates in Japanand overseas (including the Sumitomo Wiring Systems Group)

demand for better quality, we will continue to make efforts toeliminate complaints with the three main pillars of own
process quality assurance activities,
management system audits

andglobal quality

SocialContribution

With the current trend of increasingly stronger market

Environmental
Preservation

30

quality management

education.

Glossary ＊ＭＫＰ

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

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

SEI CSR Report 201436

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

Compliance with Regional Regulations on
Chemical Substances across the Globe
We are promptly responding to progressive tightening ofregional regulations on chemical substances across the globe
The Sumitomo Electric Group has taken measures to replace thesubstances listed in the EU RoHS＊ and ELV Directives＊, and ismeeting customer demand for products that contain noprohibited substances. While phthalates and somebromine-based ﬂame retardants are considered to be potentiallyadded to the list of substances banned by the RoHS Directive,
we have launched efforts to discontinue their use in the
products subject to the directive as part of an initiative in the
Action ECO-21 (Phase Ⅴ) Campaign. In fiscal 2013, wecompleted the survey to identify the amount of those
substances used in each of the Group companies.

At the same time, to comply with the REACH＊ regulation, we arepreparing for final registration of the chemical substances subject
to this obligation, and completed the registration of gallium
arsenide (GaAs) in 2012. We are also making efforts to ensure
appropriate response to the requirements of the REACH
regulation including reporting of the SVHC＊ contained in products.
In the meantime, to quickly respond to progressive tightening ofregional regulations on chemical substances across the globe,
we are continuously working to collect information on
regulations in Europe, China and other countries and share theinformation within the Group.

Product Safety (Product Liability)
We are striving for the improvement of the safety level
through practical training and voluntary inspection withfocus on the pursuit of product safety at
the product development and design stages
Under the corporate principles of offering the very best goods
and services to satisfy customer needs and contributing tocreating a better society and environment, with a ﬁrm awarenessof our social responsibility, the Sumitomo Electric Group ismaking efforts to enhance the safety of products.
In our product safety initiatives, we adopt the basic approachthat the products to be introduced to the market should
undergo thorough examination of safety, especially at thedevelopment and design stages.

《 Training on Product Safety 》
For product safety, we hold annual technical seminars on the
Product Liability Act and the revised Consumer Product Safety
Act through cooperation between the Quality Management
Division and the Legal Department.
The seminars adopt 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
applicable to all divisions including the review of product safety
at the development and design stages, proper display of
warning labels, maintenance of product safety, collection of
product safety information and response to accidents.

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

CSR VOICECS

We control chemical substances in products on a global scale
Satoshi Shukushima
Environmental & Material Technology Section Manager, Advanced Electronic Wire & Cable Division, Sumitomo (SEI) Electronic Wire, Inc.

Sumitomo (SEI) Electronic Wire, Inc. manufactures electric wires for home appliances, electronics and automobiles, and I
am in charge of the management of chemicals in the products. Such products are manufactured at not only Japanese sites
but also overseas production facilities including those in China, Malaysia, Vietnam, the United States and Europe. Our
section also provides these overseas manufacturing sites with guidance on the system to control chemical substances in
products. While we did not fully understand how chemical substances in products were managed in overseas sites at first,
we visited and audited each of the sites and appointed a person in charge of the management to exchange information with and give
guidance to the person. As a result, a system to control chemical substances in products has been established on a global scale.
To respond to recent increases in the number of the chemical substances to be managed due to the REACH Regulations in Europe, we are
examining the use of the chemical substances newly added to the list to take measures in order to avoid the risk of contamination withthem. As chemical substances are hard to understand for those who have not specifically studied chemistry, we regularly provide relevant
education and training to maintain and improve the system to control chemical substances in products.

SEI CSR Report 201437

Glossary ＊RoHS Directive

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

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

Logistics Quality and Oﬃce Work Quality

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

Activities for Improvement of
Office Work Qualityof transport accidents and the improvement of logistics

The Sumitomo Electric Group believes that product quality

quality in concert with transport companies.

and office work quality are inseparable in business execution

In comparison with the figures in fiscal 2012, the number ofand equally focuses on office work quality improvement

accidents with damage to products caused by a forklift truck

activities, aiming to eliminate critical office work mistakes anddecreased by five, while that of accidents with damage toraise the office work efficiency. Specific activities are: (1)products due to insufficient fixation to the loading platform

development and periodical review of relevant documents

increased by six in fiscal 2013. Overall, the total number ofsuch as company regulations, business rules and office worktransport accidents decreased by only two.

instructions, (2) thorough implementation of measures toDuring fiscal 2013, we also introduced the forklift truck basic

prevent recurrence of mistakes to eliminate office work

operation competition, which has been conventionally

mistakes, and the use of Hiyari-Hatto memos, or near-missorganized in Yokkaichi, in Osaka with cooperation ofreports, to prevent mistakes and (3) improvement of officetransportation companies.

work efficiency by Kaizen at the office.

In addition to performance tests for forklift truck operation

To promote these activities, we organize town meetingsand check-before-work, we also give lectures on measures towhere the committee members of the Company visit each

prevent oil leakage at the event.

site and exchange opinions with the persons in charge of theWe will make continuous efforts to reduce transport

office work quality improvement activities in each division.

accidents and improve logistics quality.

The internal website that introduces information on example

Group's CSR Activities

We are pursuing the establishment of an information
sharing framework to promote the activities

Business Outline

The Sumitomo Electric Group is committed to the elimination

Basis for Management

Improvement of Logistics Quality

activities has been also enhanced for this purpose. We are100

to establish a

Accident by other than a forklift truck（Accidents）

99

Governancethus making efforts

The Number of Accidents of
Products during Transportation by Year

Damage by a forklift truck

framework toshare informationon the activities for

80

50

40
20

improvement of61

office work quality.
39

17

49

0

2007

2008

25
12

19
2009

13
2010

22

19

14
2011

36
19

2012

22
14

Internal website that introduces information
on example activities foroﬃce work quality improvement

2013 （Fiscal year）(Note 1) Boundaries of data collection:Osaka Works, Itami Works and Yokohama
Works + 10 aﬃliates and AS Brake Systems, Inc.
(Note 2) Other accidents than damage caused by forklift: mishandling, insuﬃcient
ﬁxation to the loading platform, water wetting, misdelivery, etc.

in November 2013 in Osaka

We also cover overseas affiliates inthe 360-degree survey for sales staff

Supply Chain■ Forklift truck basic operation competition

Customer Satisfaction Improvement
Activities by the Sales Group

Products &Services

22

38

36

36

Core
Category60

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 andlead to greater customer satisfaction.
Based on this recognition, a 360-degree survey has been

Human
Resources

further quality improvement of products and services willconducted since fiscal 2002 for persons in charge of sales.
Specifically, the sales capabilities of the sales persons areto themselves, their superiors and clients (several
companies). The assessment results are fed back to the sales
Performance test forforklift truck operation

staff and their superiors to encourage the staff to enhancetheir sales capabilities. In addition, the overall results are

Environmental
Preservation

determined and assessed with a questionnaire administered

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

SocialContribution

While we have conducted a 360-degree survey in Sumitomo

Group in a way to respond to ongoing globalization and to
Performance test for check-before-work

Glossary ＊REACH regulations

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

take measures aimed at improving customer satisfaction.

＊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.

SEI CSR Report 201438

Supply Chain

Basic Procurement Policies
We share our Basic Procurement Policies with main
suppliers and seek their understanding and cooperation
The Sumitomo Electric Group considers procurement to be aservice that supports the foundation of its business activities,
and in May 2006, established Basic Procurement Policies in linewith the Sumitomo Spirit and the Sumitomo Electric Group

Core Category

Supply Chain

Corporate Principles. We have distributed the Basic Procurement
Policies to our main suppliers, along with our Group companies,
and have sought their understanding and cooperation.

Basic Procurement Policies
1．Promoting procurement activities that contributeto creative and global corporate activities

Priority Theme

Promotion of
CSR procurem
ment

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

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

3．Promoting compliance-based procurement activities
Main Targets for Fiscal 2013
Continue to make requests based on the CSR Procurement
Guidelines to individual suppliers and expand the initiative.
Consider the implementation of monitoring of suppliers.

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

4．Promoting procurement activities based on
mutual trust and cooperation with suppliersContinue to implement the education program that
supports compliance, and translate, develop and applycommon basic rules on procurement.

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

Results in Fiscal 2013

5．Promoting procurement activities friendly to
the global environment

In Japan, made requests at the Sumitomo Electric Group
Partners' Meeting. Overseas, Shanghai IPO organized abrieﬁng session at the North China reverse trade fair.
Conducted monitoring of 122 main suppliers concerning
CSR procurement.
Provided 7 courses including procurement-related laws
and regulations and CSR, environment and ethics, andlaunched a training program to develop key personnel
on the Subcontract Act. Overseas, provided training
sessions for aﬃliates at liaison committees of the staﬀ incharge of procurement and outsourcing. Translating,developing and applying of common basic rules on
procurement are in review.

Main Targets for Fiscal 2014
Continue to make requests based on the CSR
Procurement Guidelines to individual suppliers andexpand the initiative. Promote the establishment of
supplier monitoring.
Continue to implement the education program that
supports compliance, and translate, develop andapply common basic rules on procurement.

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

Group Procurement System
We are working to ensure thorough compliance with
our procurement policies and enhance awarenessamong procurement staff on a global scale
Based on the Basic Procurement Policies, the procurement
measures and activities of the Sumitomo Electric Group aredeveloped under the initiative of the Group Procurement
Collaboration Oﬃce, which is an organization established in
the Procurement Division and composed of the staﬀ in chargeof procurement in 23 divisions and group companies.
Speciﬁcally, the oﬃce members work together to promote VA(value analysis) activities and provide education to enhancecompliance related to procurement and improve
procurement skills. An e-mail magazine is also distributed tomore than 400 procurement staﬀ to share information on
procurement throughout the Group.
Overseas, we organize meetings of liaison committees ofprocurement staﬀ on a regional basis under the initiative of theinternational procurement oﬃces (IPOs) of the Procurement
Division. The liaison committees of procurement staﬀ work toensure thorough implementation of the Basic Procurement
Policies through development of measures on procurement
across the Group and training of the staﬀ in charge.

SEI CSR Report 201439

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

Monitoring ofCompliance with the Guidelines

cooperation of suppliers is essential for us to further promote

We conducted a questionnaire survey of our suppliers inour commitment to CSR in the procurement activities. We

order to check their awareness of the CSR Procurement

identiﬁed the issues for which our supplies are asked to take

Guidelines, as well as progress in their activities to comply

active measures based on the Sumitomo Electric Group

with them, in February 2014.

Corporate Principles and Charter of Corporate Behavior, andFor this ﬁrst questionnaire survey, we asked for cooperation

established the Sumitomo Electric Group CSR Procurementfrom 122 suppliers dealing directly with our Procurement

Guidelines in August 2010.

Division. We would like to take this opportunity to express

Business Outline

While there is growing demand for CSR these days,

We check the progress of suppliers in their activities for
the CSR Procurement Guidelines, and work for further
dissemination and establishment among themBasis for Management

Commitment to CSR Procurement

our gratitude to the companies that answered the

1. Provision of Useful and Safe Products and Services
2. Improvement of Technological Capabilities
3. Promotion of Sound Business Management

After collecting the answers, we gave feedback to each of
the suppliers, and asked some of them to enhance theiractivities for the guidelines. We plan to conduct this initiativein a continuous manner in order to establish the cycle ofmonitoring the progress, giving feedback and asking suppliers
to improve their activities. We will also cover more suppliersin the monitoring for further development of our CSR
activities.

Governance

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.

questionnaire.
Group's CSR Activities

Sumitomo Electric GroupCSR Procurement Guidelines (extracted)※Contribution to Preservation of
the Global Environment

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

To promote environment-friendly procurement activities, the

6. Social Contribution and Elimination of Antisocial Forces

use of banned substances in its products and enhance

7. Respect to Human Rights and Considerations ofOccupational Health and Safetycontrol of other harmful substances contained in products,

8. Disclosure of Information and Promotion ofCommunication with Society

Guidelines since ﬁscal 2003. The guidelines were revised in

9. Maintenance of Conﬁdentiality and Information Security

Quality Purchases. We are using them as part of the quality

Sumitomo Electric Group has made eﬀorts to eliminate thebased on the Sumitomo Electric Group Green Procurementﬁscal 2012 to issue the new version SEI Guidelines for Green

Products &Services

We are committed to green procurement as
an essential quality factor
Core
Category

4. Contribution to Preservation of
the Global Environment

standard to promote green procurement activities.
Supply Chain

CSR VOICECS

We will make a social contribution through business with
the Sumitomo Electric Group

Environmental
Preservation
SocialContribution

Since its founding in 1955, Kanagawa Electric Industry has steadily grown as a specialized trading
company offering various industrial electrical goods. In our recent sales records, demand has increased
for mechatronics products, which are our main products, as well as for their periphery systems androbots. We realize that customer needs are becoming more diverse and complicated over time.
To remain sensitive to such changes of the times, identify customer needs as quickly as possible andrespond to them properly, we are actively developing human resources based on our rich experience,
strengthening technical response capabilities and making VA proposals.
We also organize regular meetings with our partner companies to exchange information on new products and identify the ways toreduce cost without deteriorating the performance in the production of control panels and other products.
In the previous fiscal year, we installed solar panels on our company building in an effort to protect the global environment. The
monitor of the solar power generation system shows the output and other data on a real-time basis, which has raised our
employees' awareness of energy saving. For example, they make sure to switch off unused lights.
We will continue our commitment to compliance with the Sumitomo Electric Group CSR Procurement Guidelines based on the
belief that support of the Group through supply of products is one of our social contribution activities.
We would like to express our gratitude for the continued patronage of Sumitomo Electric.

Human
Resources

Mr. Masahiro Saito Assistant Manager, Sales Division, Kanagawa Electric Industry Co., Ltd.

SEI CSR Report 2014

※ Please see the following page for details.

Web

http://www.sei.co.jp/csr/procurement/csr̲ guide.pdf

40Response to the Issue of Conflict Minerals

Organization of Partners' Meetings

We recognize this issue as a major social challenge andaim to eliminate conflict minerals from our businessApprox. 220 suppliers participated inPartners' Meetings

The Sumitomo Electric Group, which is

Promoting

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

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

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

proposed and practiced good value analysis (VA)＊ activities,

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

cooperative relationships with suppliers.

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

In addition, we have presented the CSR Procurementon the use of conﬂict minerals when necessary. In the event

Guidelines at Partners' Meetings to ask for their cooperationthat the use of minerals that may cause a social problem orand promote the guidelines actively.

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

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

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

reverse trade fairs＊.

activities based on mutual trust and cooperation with

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

suppliers in the Basic Procurement Policies, we will ask

and divisions also hold such meetings individually.

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

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

manufacture or store the products in the aﬀected area at thetime of disaster.
In ﬁscal 2013, we had fears of a supply shortfall when some
suppliers suspended their operations due to ﬁre accidents
and heavy snowfall. Nevertheless, we were able to procurematerials without large impact on our production due to theprior examination of alternative products in theabove-mentioned activities, along with the cooperation of our
suppliers. These incidents reminded us of the signiﬁcance ofsuch activities.
We will maintain these activities to strengthen our
procurement system that can supply products and services inReverse trade fair in Shanghai

a stable manner.

SEI CSR Report 201441

Glossary ＊value analysis (VA)
VA is conducted to replace "Material X" with cheaper "Material Y"
that still provides the quality required for the product.

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

Education System
We organize training seminars to
improve procurement skills in overseas offices as well
For the purposes of development of reliable procurement

In our eﬀorts toward compliance, procurement divisions muststaﬀ and handing down of procurement ethics, knowledge

pay special attention to observing the Act against Delay inand expertise, the Procurement Division has developed andPayment of Subcontract Proceeds etc. to Subcontractors

provided an OFF-JT＊ program for working staﬀ, which is
combined with existing OJT＊ to create a synergistic eﬀect

customs duties on items we import directly from overseas.

that will improve procurement skills.

In ﬁscal 2013, Sumitomo Electric also organized group-wide

The OFF-JT program in ﬁscal 2013 was composed of 7

training seminars to ensure full compliance with the laws.

courses including procurement-related laws and regulations
andCSR, environment and ethics,

each of which wasprovided by an expert in the Procurement Division. The

Results of training and inspection
Subcontract Act

Customs Law

experts used textbooks they prepared, and gave lectures

18 sites in Japan

Details

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

Participants

2,006 in total

Japan and overseas. In total, 378 persons from 33 companies
attended the lectures.
Aside from these initiatives, we organized a training program
to develop key personnel on the Subcontract Act, andprovided a certiﬁcate for 16 persons who completed the

Self-examination

19 divisions + 45 aﬃliates

23 divisions

program. This program develops core personnel for the

Inspection tour

5 divisions + 5 aﬃliates

23 divisions

establishment of an autonomous system to comply with thestaﬀ but also to manufacturing and development staﬀ.

been organized to further ensure compliance with theOverseas, we hold liaison committee meetings in the regions

Subcontract Act and the Customs Act based onwhere our group companies and aﬃliates are concentrated.

self-examinations and other initiatives. We will continue to

The meetings are attended by staﬀ in charge of procurement

organize periodical training seminars and inspection tours toof our aﬃliates in the respective regions, who are provided

promote compliance.

with training seminars concerning procurement.
In the future, we will organize training seminars regularly tofurther disseminate the Basic Procurement Policies andconsider providing such seminars at more sites.

(Persons)

2,500

Results of Education
2,006

2,000

1,500

Education
program861
Key personnel
development
program

500

0

2010

2011

2012

2013

(Fiscal year)

Training seminars
at overseas
liaison committee
meetings ofprocurement staﬀ

No. oflectures

1st half of FY2013

7

28

208

31

2nd half of FY2013

7

26

170

26

2nd half of FY2013

1

5

16

13

1st half of FY2013

2

2

36

21

2nd half of FY2013

1

1

19

9

Human
Resources

2009

No. ofcourses

Supply Chain

1,117

1,329

1,193

No. ofTotal
participating
participants companies

Date

Products &Services

Number of Participants in
Procurement Compliance Training Seminars by YearCore
Category

Act has to be made known widely not only to procurement

ensure legal compliance. In addition, inspection tours have

Governanceact in each division and company because the Subcontract
We have increased the number of the training sessions toGroup's CSR Activities

through the teleconference system connected to sites in

Locations

1,000

Business Outline(Subcontract Act) and to making appropriate payment ofTraining
seminarsBasis for Management

Initiatives to Ensure Compliance withLaws Related to Procurement

Environmental
Preservation
SocialContribution

Procurement compliance training session

Key personnel education program

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

SEI CSR Report 201442

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 Group

Core Category

In the Sumitomo Electric Group, over 200,000 employees are

Human
Resources

believe that for Sumitomo Electric to win the global

Priority Theme

Promotion of diversity

working actively in about 40 countries around the world. We
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.

Main Targets for Fiscal 2013
Promote initiatives to implement the Global HRM Policy
Common personnel system for executives
Guidelines on international transfer, and one other item.
●●

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 nationality, race, ethnicity, religion

Continue to develop the SWITCH Plus Campaign (third and ﬁnal year)
Improve work eﬃciency and productivity
Promote communication, and two other items.

or gender, promotion of diversity and development of global

Eliminate accidents resulting in lost work time, reduce thenumber of no lost work time accidents to 10 or less andreduce that of accidents causing minor injury to 10 or lessinform people in and outside of the Group about it.

●●

Implement priority items for ﬁscal 2013 related to health and safety
Establish activities involving all employees
Implement global safety evaluation, and six other items.
●●

Results in Fiscal 2013leaders, in order to accelerate our global human resource
recruitment and promotion. We have declared the policy to

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 andpursue globally the right person in the right position
regardless of nationality, race, ethnicity, religion, age
or gender.

●

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

●

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

Introduced the Global Grade System and the Group Global
Executive Personnel System in April 2014, and one other item.
Extended the paid period during childcare leave fromthe ﬁrst 3 days to 5 days
Held a town meeting 19 times, and two other items
Accidents resulting in lost work time: 3, no lost work time
accidents: 24, and accidents causing minor injury: 18
Implemented priority items for ﬁscal 2013 related tohealth and safety
Strengthened and implemented the 1-2-3 campaign
Started the second series of global safety evaluation,and six other items●●

Main Targets for Fiscal 2014
Promote initiatives to implement the Global HRM Policy
Promote the establishment and improvement of the
Global Grade System and the Global Executive
Personnel System, which were introduced in April 2014
Guidelines on international transfer, and two other items.
●●

Develop the SWiTCH 17 Campaign (ﬁrst year)
Work style (review of the way of working, adjustmentof working hours, improvement of work eﬃciency)
Communication (cultivation of a corporate culture to
praise, thank and appreciate), and two other items.
●●

Eliminate serious accidents and accidents resulting in lost time
work, and reduce the total number of no lost work time
accidents and accidents causing minor injury to 20 or less
Implement priority items for ﬁscal 2014
related to health and safety
Enhance site inspection by managers andsupervisors (1-2-3 campaign) and identiﬁcationof problems through dialogues
Strengthen the horizontal diﬀusion of
accident prevention measures to eliminate
similar disasters, and ﬁve other items.
●●

SEI CSR Report 201443

To materialize the policy and narrow the gap between theideal and reality, we will continue to promote concretemeasures such as the establishment of HR systems to becommonly applied on a global scale, as well as preparationof guidelines.

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

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

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

This Global Grade System will be applied commonly acrossthe Group. As the ﬁrst step, we introduce a grade called GL(Global Leader) on April 1, 2014, and appoint 24 board
members and equivalents from overseas subsidiaries otherthan those of listed companies as the GL grade.

●

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

●

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

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

Governance

Sumitomo Electric adopts a personnel system that allows
talented and qualiﬁed persons to seek career development in abusiness unit or on a regional basis beyond the borders ofindividual companies to engage in management of groupcompanies in Japan and overseas or perform even higher duties.

Group's CSR Activities●

Business Outline

components of the Global HRM Policy, as well as the

Global Grade System andGroup Global Executive Personnel System

Basis for Management

Dissemination of the Global HRM PolicyGroup Corporate Principles, messages from executives andinformation on our business and social contribution activities

Sumitomo Electric Group Executives

in various regions, in order to share information and cultivate

GlobalGradea sense of unity among Group employees.
executives,

Group Global Executive

who work

Business Unit /Regionactively in various parts ofBusiness Unit /RegionGL

the world, have been

ExecutiveClass

published since the Autumn
2011 issue. The articles

GeneralManager

Transfer

Executive
Class

Transfer
Transfer

Supply Chain

Transfer

Products &Services

Interviews with our global

Core
Category

information on our business performance, as well as

introduce specific examples

Transfer

Sumitomo ElectricTransfer
Transfer

Overseas aﬃliate

Human
Resources

Domestic aﬃliate

Sumitomo Electric Group in

Transfer

Cultivated andappointed
under the systemof each company

Cultivated andappointed
under the systemof each company

sense of unity among Group

opportunities in the

Cultivated andappointed
under the systemof each company

order to further enhance aof self-realization and career

employees as well as theirmotivation.
Transfer

ALL SEI

Numbers as of March 31 of each ﬁscal year

200,000

150,000

50,00002006 2007 2008 2009 2010 2011 2012 2013 (Fiscal
year)

2006

2007

2008

2009

2010

2011

2012

2013

18,201

23,962

15,744

13,852

15,164

19,712

24,27329,470Europe/Africa

27,634

31,406

32,667

33,834

41,23047,73547,64454,245Southeast Asia

25,76627,167

34,792

34,31037,53843,00049,86856,408

China

29,36734,93933,80837,84351,887

46,78847,39047,646

Japan

32,88536,25135,53637,36436,95437,49937,14837,715

Total

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

SocialContribution

100,000

Fiscal year

Americas

Environmental
Preservation

Number of Group Employees in the World by Year
No. of employees (persons)※ Sumitomo Electric and its consolidated subsidiaries

SEI CSR Report 201444

Diversity in Recruitment

Organization of Town Meetings

We recruited 11 international students as new graduate
employees for main career track in fiscal 2013

Employees are provided with opportunities tohave direct dialogue with executives

In fiscal 2013, Sumitomo Electric employed 152 new

To facilitate communication inside the company, we organize

graduates for main career track in Japan, 20 of whom werevarious town meetings. Groups of employees are formed

female and 11 were overseas students, etc. We also hired 33

according to job type, and provided with precious

mid-career employees. To support the development of ouropportunities to directly talk with executives (officers andvarious business activities including those in new fields andgeneral managers) in the meetings. The participants can inform

global markets, we continue to actively recruit women,

the executives of their problems and requests specific to theirforeign students, mid-career employees and other diverse

respective jobs. The meetings also help them create networks

personnel.

to have interactions with employees in other divisions.
We organized the town meetings as listed below during 2013.

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

ForemanTown Meeting(Persons)

450

Female
Male

434

400

92

350

314
49

300
250

220
45

200

342

150

258
51

268
36

281
43

207

232

238

265

100

175

50

2009

2010

2011

Ratio of Male/Female Employees andRatio of Male/Female Managers
FemaleFemale1,25487persons

12.1％

2012

2013

(Fiscal year)

10,392

2.6％

Total number ofmanagers in
Sumitomo Electric:

Male

9,138

3,286

persons

Ratio of male/female
employees

Approx. 11 to 13 persons each time (49 persons in total)

Applicable
employees

Employees from main career track to assistant managers

No. ofmeetings

Once in Tokyo, Osaka, Yokohama andChubu District Oﬃce each (4 times in total)

No. ofparticipants

Approx. 9 to 11 persons each time (40 persons in total)

Applicable
employees

Female employees from main career track to assistant managers

No. ofmeetings

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

No. ofparticipants

Approx. 7 to 21 persons each time (41 persons in total)

Female General Track Town Meeting

Male

3,199

Applicable
employees

Female employees from general staﬀ toassistant managers promoted from general track

97.4％

No. ofmeetings

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

No. ofparticipants

9 persons each time (18 persons in total)

persons

87.9％

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

No. ofparticipants

Female Main Career Track Town Meeting

As of March 31, 2014

persons
Total number of
Sumitomo Electric
employees:

Section chiefs and deputy section chiefs

No. ofmeetings

Main Career Track Town Meeting

0

2008

Applicable
employees

Ratio of male/female
managers

Manager Town Meeting

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

48

50
45

Applicable
employees

Administrative members

No. ofmeetings

Once in Osaka, Yokohama, Osaka Head Oﬃce andKanto each and twice in Itami (6 times in total)

No. ofparticipants

Approx. 10 to 16 persons each time (70 persons in total)

41

40

33

35

33

36

29

30

25

25

18

20
15

11

10

China
Malaysia
Nepal
India

5

Taiwan39
2
1
1
1

SwedenVietnam
FranceMorocco

1
1
1
1

0

2005 2006 2007 2008 2009 2010 2011 2012 2013

(Fiscal year)

The opinions presented
in the town meetings
are communicated to
the relevant divisions on
a timely basis and used
for organizational
operation and planningof personnel systems.

Female Main Career Track Staﬀ Town Meeting

CSR VOICECS

I participated in the town meeting for female main career track
Ai Suzuki 2nd Group, 2nd Sales Department, Sales Division (Central Japan)
After participating in the town meeting, I felt that job-related problems are wide-ranging depending on job
category, seniority and work location and the problems faced by women are also different from person to person.
During the meeting, comments of senior colleagues indicating that we are required to achieve good job
performance irrespective of gender encouraged me. At the same time, I felt that female workers tend to bear theburden for making achievements, because the balance between childcare and work is often considered as an
issue for only women in the Japanese work environment. This situation has to be improved.
For diversification of human resources, more support will need to be offered to female workers and other employees facing various
challenges. I look forward to the approaches to be adopted by our company to make effective use of more diverse human resourcesin the future.

SEI CSR Report 201445

drawings and other paper documents into electronic files andWe aim to be a company where diverse talents candemonstrate their capabilities regardless ofnationality, race, gender or age

building and second greenhouse were completed in 2011. In

In the globalized modern society, many women holdCurrently, 47 employees are working at the company,

important posts including top management, especially in the

including 28 persons with disabilities.

shredding and recycling of waste paper. Its new office
addition to the branch established in Yokohama in 2013,
another branch was founded in Tokyo in May 2014.

Basis for Management

Utilization of Diverse Talents

United States and European countries. The momentum toBusiness Outline

assist women in playing more active roles is also increasing in
the Japanese society, as exemplified by the specific targets
for promotion of women's advancement set by the Japanese
Government. Sumitomo Electric is also committed toenhanced recruitment of women, active promotion of female
employees and encouragement of them to keep working forthe company. These efforts are aimed not only at fulfilling
resources regardless of gender and promoting marketing andnew businesses from a multilateral perspective.
To ensure that diverse talents can demonstrate theircapabilities regardless of nationality, race, gender, age or
Sumiden Friend (Itami)other background in the Group, we will continuously work topromote training and development programs, deployment
and promotion beyond the borders of individual companies

Number of Employees with Disabilities at Sumiden Friend by YearThe disabled

2011

2012

2013

5

12

12

20

Employment rate as of June 15 of each year

Employment rate as ofJune 15 of each year

（％）

2.1

2.06

2.11
2.03

2.00

2.0

employment of persons with physical disabilities. To further

1.9

disabilities and increase their employment rate, we

2.02

1.8

2.05

Legallyrequired
percentage

1.91
1.91

1.92

2011

2012

1.85

1.84

2013

2014

established a special subsidiary, Sumiden Friend, Ltd.,
1.7

specifically for employment of persons with disabilities in July02008 (certified in February 2009). Beginning with loan and2009

its operations gradually to also engage in conversion of2010

Special-purpose Subsidiary Group＊(Fiscal year)

Sumitomo Electric alone

Supply Chain

maintenance of the ornamental plants and production of
buffer materials for packaging, Sumiden Friend has expanded

Products &Services

promote employment of persons with physical or mental

2.01

28
(Persons)

Employment Rate of the Physically or
Mentally Disabled by Year

Sumitomo Electric has been traditionally working to promote

2014

Core
Category

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

2010

Governanceand offer various career opportunities.

Promotion of Employment of the Persons
with Physical or Mental Disabilities

Group's CSR Activities

social responsibility but also at recruiting excellent human(Note) Above graphs cover personnel data for Sumitomo Electric employees,
and Special-purpose Subsidiary Group (7 companies)

CSR VOICECS

Koji Takeda, Tomoya Ishiguro, Kimiko Umemoto Sumiden Friend, Ltd.

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.

SocialContribution

Glossary ＊Special-purpose Subsidiary Group

Environmental
Preservation

We work at Sumiden Friend, Ltd., which is located on the premises of Sumitomo
Electric's Itami Works. Our jobs include maintenance of plants and filling bags withbuffer materials to be used for packaging of products. Some members also workfor conversion of documents into electronic data using PCs. While the jobs weretough at first, we learned the skills gradually from superiors and senior members.
We sometimes face a difficult
situation, but it g i v e s us
motivation at the same time.
As all members are friendly
with each other, we enjoy
communication during breaks.
We will continue to take on
new challenges.

Human
Resources

We are experiencing the joy ofworking as well as the challenges and strictness

SEI CSR Report 201446

Human Resource Development

Personnel to be Developed

Diversity constitute the compulsory training for all employees.

Sumitomo Electric deﬁnes personnel to be developed asprovided through e-learning, video lectures and other tools.

personnel who honor the Sumitomo Spirit, understandThe number of participants in the training programs (sum ofmanagement policies, possess high levels of skill andparticipants in each program) in ﬁscal 2013 was 50,843, andknowledge rooted ﬁrmly in the basics, and can play active

the total length of training was about 340,000 hours.

This training is incorporated into various training programs androles in the global community.
Total length of training

Basic Concept of Human Resource Development● Human resource development according to the corporate（Hours）

400,000

philosophy and management strategy● Human resource development based on

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

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

300,000

386,530
200,000

279,683

259,701

61,88068,01866,48915,31816,933100,000

Group-wide training
Training by the Human Resources
Development Dept. / Training by
Corporate Staﬀ Group

278,623
253,660

55,310
4,428

0

2009

57,824
8,322
2010

2011

Sumitomo Electric employees

2012

17,3662013 （Fiscal year）

Employees of domestic aﬃliates

Employees of overseas aﬃliates

SEI University
We have established a system toprovide various training programs toraise the human resource value of employees
SEI University represents the Sumitomo Electric Group's(Note 1) Only the training seminars provided by Sumitomo Electric are counted
in the ﬁgures for domestic and overseas aﬃliates.
(Note 2) Values for the past years have been adjusted retroactively to improve
the accuracy.

Total number of participants（Persons）

50,000comprehensive training and education system. With the aimof becoming a Glorious Excellent Company, the entire Group

40,000is developing various training programs at SEI University tofamiliarize the entire Group with the Sumitomo Spirit and theSumitomo Electric Group Corporate Principles, develop a
corporate culture to cultivate persons and nurture humanresources who aggressively venture into the international

32,53730,00025,59520,0000

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

28,717

21,282

6,520
983

8,728

10,000arena and can demonstrate their capabilities there.

Fundamental Principles of SEI University

26,5962009

11,209
2,643

1,800
2010

2011

Sumitomo Electric employees

13,4483,064
2012

15,3982,908
2013 （Fiscal year）

Employees of domestic aﬃliates

Employees of overseas aﬃliates(Note 1) Only the training seminars provided by Sumitomo Electric are counted
in the ﬁgures for domestic and overseas aﬃliates.
(Note 2) The total numbers of participants in the previous ﬁscal years have beencorrected retroactively because some of the participants fromdomestic aﬃliates had been counted as Sumitomo Electric employees.
(Note 3) Figures for the previous ﬁscal years have been adjusted retroactively asa result of improvement in accuracy.

Training Programs at SEI University

The Sumitomo Electric Group provides training programs to

Sumitomo Electric provides various training programs for acultivate manufacturing personnel mainly at the Technicalwide range of positions from executives to newly hired

Training Center (TTC), which was established on theemployees. Including position-based (compulsory) training forpremises of Itami Works in October 2008. The basic concept

the employees in speciﬁc positions or involved in speciﬁcof the Center is that participants learn diﬀerent subjects

operations as well as optional training available for applicants

ranging from basic manufacturing to up-to-date technologies

depending on their operational needs, approximately 360

and skills, working with actual machines and products, based

training programs were oﬀered in ﬁscal 2013. Training is also

on principles through their ﬁve senses. The curriculums

provided to teach necessary skills and knowledge in eachcontain training on subjects essential for manufacturing, such

division, including daily on-the-job training (OJT) centering on

as safety, environment, quality, improvement and shop-ﬂoor

management by objectives.

management, as well as professional courses on proprietary

The ﬁve basic subjects of (1) Sumitomo Spirit, Corporate

technologies and techniques and equipment control andPrinciples and CSR, (2) Management policies and visions,maintenance technologies that are commonly used across(3) Compliance, (4) Safety, environment and quality and (5)the Group. The number of the participants is growing every

SEI CSR Report 201447

《 Cultivation of Manufacturing Personnel 》

Roughly 360 programs were conducted in fiscal 2013

The committees design an education system in eachﬁscal 2011. The target of 11,000 person-days during ﬁscal

company, and prepare and organize training sessions for the2013 was achieved by accommodating 11,499 person-days.

staﬀ and workers while also engaging in information

In overseas, we also started training for facility maintenance,

exchange activities, including collection of information onwith focus on safety of construction work and safety of

training needs from local companies and explanation ofequipment, in September 2010, which is now organized in

Sumitomo Electric's training programs to them.

China and Southeast Asia on a regular basis. The training has
been organized in seven overseas sites by March 2014,

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

Business Outline

receiving a total of 187 persons from 30 companies.

29

30
25

Addressing Globalization

20

To address the globalization of its business activities, theSumitomo Electric Group is committed to development of
personnel who aggressively venture into the international

16

15

18

10

7
5

6

0

2009

2010

2011

2012

2013

（Fiscal year）(Note) The data cover Sumitomo Electric.

arena and can play major roles there.
In Japan, a telephone English training program was opened
for beginners to learn skills to deal with English phone calls

Development of Future Global Leaders

symbolizes ongoing globalization of our business. In such aoverseas in the future to actively participate in ourcontext, for the growth of the Group as a whole, it is crucial

cross-border trainee program. Many young workers havethat all employees including those who work at our overseas

been provided with opportunities to learn and grow inaﬃliates share the Sumitomo Spirit, the basic philosophy ofdiﬀerent cultures across national borders. In the business

the Company, as the foundation for their operations. To thisEnglish training course launched in ﬁscal 2012, 274 persons

end, we have launched the Sumitomo Electric Groupappointed by general managers at 10 sites received lessons

Management Program based on the Sumitomo Spirit (MPSS)

to improve their English conversation skills during ﬁscal 2013.

to disseminate the Sumitomo Spirit among management

Overseas, to promote training programs at SEI University on a

personnel who play pivotal roles in the respective companies

global scale, we have established the Human Resources

and improve their skills to manage their subordinates. In ﬁscal

Development Committee on a country basis, which aims to2013, this training program was provided for the ﬁrst time indevelop personnel, mainly national staﬀ, who can meet local

the United States to give lessons for 23 management

needs. In addition to China, Indonesia, Malaysia and Thailand,personnel, in addition to the sessions in Europe (organized inwhere the committee has already been active, we launched

Germany with a total of 14 participants from Germany, thethe committee in the United States in ﬁscal 2013. The

UK, Italy, Czech and Hungary) and Southeast Asia (organizedcommittee members include local HR managers of thein Singapore with a total of 20 participants from Singapore,companies and persons in charge of human resource

Indonesia, Malaysia and Thailand). We will continue todevelopment in the regional administration divisions, as wellprovide this training to ensure that the basic philosophy is

as human resource development staﬀ of Sumitomo Electric.

shared throughout the Group even amid rapid globalization.

CSR VOICECS

Human
Resources

Electric Group far exceeds that of the Japanese sites, which

We are also encouraging employees who may be assigned

Supply Chain

At present, the number of the overseas sites of the Sumitomo

worry about answering a call in English.

Products &Services

pick up the phone without hesitation although they used toCore
Category

Management personnel fromour overseas affiliates participated in MPSS

Governancesites took the lessons. The participants say that they can now

to the workplace in ﬁscal 2013, and 78 employees at sevenGroup's CSR Activities

We have set up the Human Resources Development
Committee in China and three other countries in Asia,
as well as in the United States, to promote
the development of personnel who can meet local needs

Basis for Management

year, and has exceeded 10,000 person-days each year since

I participated in the cross-border trainee program
Yasuhiko Tsunoyama IR Office, Accounting Department
Environmental
Preservation
SocialContribution

I received training at the accounting section of Sumitomo Electric Wiring Systems (Europe) Ltd. in the UK
for about one year from February 2013. As the company has many facilities in Central and Eastern
Europe, North Africa and other regions in addition to the UK sites, I worked with employees of diverse
nationalities from various parts of the world. The number of Japanese expatriates was relatively small inthe entire company, and the president, my superiors and colleagues in the workplace were all British.
Although I was confused with the different work approach, diverse ways of thinking and difficulty incommunication, I learned a lot by overcoming my problems. I was also active on holidays to experience
the rich local history and culture, which broadened my point of view.
The Sumitomo Electric Group, which is increasing the proportion of overseas sales year by year, is offering more and more
opportunities to play an active role in the international arena. When I am assigned overseas again in the future, I will actively utilize
the experience gained from my one-year stay in the UK and would like to be a person who can demonstrate the capabilities incooperation with local staff based on understanding of diversity.

SEI CSR Report 201448

Safe and Sound Workplace

Respect for Human Rights in the Workplace
We respect human rights and strive toestablish sound and lively workplaces
The Sumitomo Electric respects human rights in its business
operations, in line with the global principle in the 1948
Universal Declaration of Human Rights that All human beings
are born free and equal in dignity and rights.
More specifically, the Sumitomo Electric Group Charter ofCorporate Behavior, which was instituted in accordance with
the Sumitomo Spirit and the Sumitomo Electric Group
Corporate Principles in September 2005, specifies respect forhuman rights, professional development and establishment ofsafe and sound workplaces.
Our Global HRM Policy, which was instituted in September
2011, also declares that we will offer various career
opportunities and pursue globally the right person in theright position

regardless of nationality, race, ethnicity,religion, age or gender, as an essential approach for globallytoward the realization of a society in which human rights areguaranteed for all.

Labor-Management RelationshipThe union and management are committed tosolving various problems through in-depth discussions
Sumitomo Electric believes that the development of acompany goes hand-in-hand with the well-being of its
workers' union members. On the basis of this belief,
Sumitomo Electric strives to address various relevant issues
by thorough discussion between the union and management,each party respecting the other's standpoint. In particular, theCentral Management Council Meeting, which is held fourtimes a year, has a history of more than 60 years, and has
served as a forum for exchange of opinions between
representatives of the union and management concerningbusiness environments and managing conditions. We havealso set up expert committees of various kinds to create an

to diversify human resources, uphold human rights and create

environment where all employees can work lively with smiles
by improving various working systems and reinforcing

lively workplaces where each employee can work with

monitoring functions.

operating companies. In conformity with the Policy, we strive

enthusiasm.

SWiTCH 17 Campaign《 Compliance Manual 》
Respect for human rights and prohibition of discrimination are
clearly stated in the Sumitomo Electric Group Compliance
Manual, along with specific examples.

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

We are promoting creation of workplaces where
employees can work lively to achieve VISION 2017
Sumitomo Electric has promoted the following company-wide
campaigns with the aim of ensuring that employees canachieve the proper balance between work and life.

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

●

Adjustememt of working hours and improvement of work
efficiency and productivity

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 2013, the total number of participants in the humanrights-related seminars, including the education at theworksites provided mainly by Human Rights Task Committee
members, was 8,924.
activities, we organize an
in-house contest for human

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

We have achieved significant results through past measures,

campaign, which also inherits the previous initiatives,
individuals and workplaces set targets on the four categories

rights slogans every year. The
contest in 2013 received
Training session《 Establishment of Consultation Services 》
We have set up a service to provide consultation and receive
reports, which is supervised by the Compliance Committee,
as well as consultation services in regards of sexual
harassment and the work environment. With these services,
Sumitomo Electric has in place a system to quickly gather
information on any violation of human rights and takeappropriate measures against them.

of work style (review of the way of working), healthcare(physical and mental health management), communication(improvement of communication at the workplace) andself-development, and work to meet the targets.
The campaign is specifically promoted by distributing its
posters throughout the Company and publicizing it on
in-house magazines. We have appointed a person in chargeof the promotion of SWiTCH 17 Campaign and a workplaceleader at each division to share information and ensuresmooth operation.

Sumitomo Electric participates in human rights organizations

The title of the campaign expresses our commitment toachievement of VISION 2017 as well as creation of
workplaces where everyone (the lower case i means I ,namely each of the employees) can play a main role andincluding the Corporate Federation for Dowa and Humandemonstrate their capabilities. Through promotion of thisRights Issue, Osaka. In cooperation with relevant

campaign, we aim to develop lively workplaces in order to
win the global competition and achieve VISION 2017.

《 Cooperation with
Human Rights Organizations and Governments 》

governmental agencies and other organizations, we work

SEI CSR Report 201449●

especially those concerning work hour management andsupport for the development of the coming generations. In
fiscal 2014, SWiTCH 17 campaign was launched. In this new

As part of the enlightenment

3,877 slogans.

SWITCH Campaign (3 years from fiscal 2008 to 2010)

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

2006 2007 2008 2009 2010 2011 2012 201322.6 22.1 21.0 14.2 19.1 20.5 18.6 19.3

Year
Average overtime
hours per month

hours hours hours hours hours hours hours hours

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

Sumitomo Electric is committed to dissemination of basic(Note) Average among SEI's labor union membersof a related handbook and supply of relevant information on

knowledge regarding mental health care through distribution

Basis for Management

Average Overtime Hours and Average Number ofPaid Holidays Taken by Employees by Yearthe corporate website and in-house magazines. We also
work to manage mental health care for employees on a

(Hours)2,100

company-wide scale by providing
2,073 2,068

2,050

self-caretraining toencourage employees to pay attention to any signs of their

2,049
2,031

2,042

2,042

2,023

own mental health problems, as well as care by supervisor
training for management level employees.

2,000

Business Outline

Average total working hours by year

We also station counselors at major operating sites, allowing

1,950

employees and their family members to consult external

1,965
2006

2007

2008

2009

2010

2011

2012

2013

(Year)(Note) The personnel data presented above cover Sumitomo Electric employees.
(The data include those who are dispatched to group companies.)

counselors 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 address

Implementation of the Survey toCreate a Lively Working Environment

these issues.

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

employees by, for example, allowing all

Sumitomo Electric has been conducting Survey to Create aor on leave due to mental health issues,

Lively Working Environment,a questionnaire survey to

we have a program to provide

investigate the awareness of employees, since ﬁscal 2006. In

step-by-step support to help themﬁscal 2013 as well, about 20,000 employees were surveyed

return to work, and take measuresin November, including those of group companies.

carefully in cooperation between

The scores are presented in the ﬁgure below. In the survey inworkplaces, HR staff members andfiscal 2013, we added questions about dissemination andcompany doctor and other specialists.

To enhance the prevention of mental health problems, weare also striving to improve our support for self-care ofGovernanceemployees to have their stress levels
tested. For employees who are absent

Number of Employees Who Took Mental Health Training Course

survey results are communicated through in-house

Year

2008

2009

2010

2011

2012

2013

magazines, and also fed back to the person responsible for(persons)

605

285

215

767

521

557

Products &Services

There have been no major changes in the overall trend. The

Core
Category

Mental Health
Handbooksharing of VISION 2017 and other items.

Group's CSR Activities

0each organization, as well as the person and staff in charge of
the SWITCH Plus Campaign on a workplace basis. Each
workplace specifically identifies possible problems andSupply Chain

promotes measures to solve them.

Support for Balancing Work and Life

Results of the Survey toCreate a Lively Working Environment

We actively promote the development ofchild and family-care related systems
3.52

3.54

Manager'sManagement

FY 2013
FY 2012FY 2011
FY 2007

To support its employees in balancing work and life,
Sumitomo Electric is committed to promoting the work stylethat achieves the proper balance between work and life andhas also developed child and family-care related systems

3.80

Workplace
Discipline

Human
Resources

Dissemination ofBusiness Spirit andCorporate Principles

actively. For example, the Company attained the goals set
under its four Action Plans, which were formulated on the

3.24

basis of the Act on Advancement of Measures to Support
Rising Next-Generation Children. Consequently, Sumitomo

3.43

Electric has been certified by the Ministry of Health, Labor

Devotion to Job

and Welfare as a business that helps its
3.17

employees balance work and childcare.

Motivation

Environmental
Preservation

Workplace
Atmosphere

We distribute handbooks to all
3.42

employees, develop a website andprovide training under various programs

3.49

Satisfaction in
Workingin order to help all employees and theirsuperiors enhance their understanding

0
Bad

1

2

3

4

5-grade scale

Glossary ＊Mark certifying corporate support for parenting, Kurumin

5Goodand establish a work environment forbalancing work and life.

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

Mark Certifying
Corporate Support for
Parenting, Kurumin＊SocialContribution

Communicationin the workplace

SEI CSR Report 201450

Various Support Programs《 Childcare Centers 》

We provide each of the employees withvarious types of support

employees working full-time while raising children, Sumitomo《 Reemployment System 》

Works in March and April 2008 respectively, and added a

In April 2008, Sumitomo Electric introduced a scheme tothird center in Itami Works in March 2009. As of March 31,

reemploy employees resigning due to circumstances beyond

2014, these three centers take care of 62 children in total.

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

For employees who cannot use our childcare centers, we are

the scheme, we organize interviews and reemploy eligible

taking other supportive measures such as subsidizing theirpersons when they are able to return to work (within threeuse of other childcare centers.

As a measure to foster a supportive environment forElectric opened childcare centers at its Yokohama and Osaka

years from their resignation) and, as a general rule, assign
them to their former workplaces.

CSR VOICECS

I used the reemployment system
Yuko Oki Business Legal Group, Legal Department
I registered myself in the reemployment system before leaving my job to move to the US with myhusband, who was assigned to the country. One year later, I returned to the Overseas Contracts &Legal Affairs Department, to which I used to belong. It was hard to decide to leave the company.
However, staying in the US was a precious experience for my husband and me as we were able toshare many things and strengthen our partnership by supporting each other in an unfamiliar
environment. My co-workers of the department always gave me kind supports when I decided towithdraw from employment and while I stayed in the US, which made me to work with them again.
This lead to the decision to return to work. I thank for giving me a chance to work here again.

Sumitomo Electric Group Global Awards Conference
On August 1, 2013, the second Sumitomo Electric Group Global Awards Conference was held at Nakanoshima, Osaka.
The event was attended by a total of approximately 360 people including representatives of 53 group companies fromJapan and 85 from foreign countries. Awards were presented to the teams that made significant contributions towardachieving the target of becoming a Glorious Excellent Company in the past five years, and representatives of the teams
made presentations on their achievements. The event also allowed us to share our vision, business policies, etc. across theGroup to realize the mid-term business plan VISION 2017. On the day following the conference, we organized a training
seminar and a tour to locations closely connected with Sumitomo's history, which helped participants from other countries
improve their understanding of Sumitomo Electric. This served as a good opportunity to build networks between staff
members from different countries and divisions.
While this event is held once every five years, the Group Global Awards will be continued to commend business units
showing excellent performance.

SEI CSR Report 201451

Correlation of Employee Support Programs with Relevant Laws
Item
Action plan

Legal requirements

Activities of Sumitomo Electric

To be formulated for a period of 1 to 4 years

Formulated every 2 years since 2005, and the current plan is the 5th one

Period of childcare leave

Child-care leave until the child reaches 1 year
(1 year and 2 months if both parents take child-care leave(Mom&Dad Child Care Leave Plus), up to 1 year and6 months if day care is not available, etc.)

Number of times an employee
can take childcare leave

The leave can be taken again by
the father who took it within 8 weeks from childbirth

The leave can be taken in up to 3 separate periods irrespective of the reason

Pay during childcare leave

No payPaid for the ﬁrst 5 days of the leave

Shortening of work time

Before the 3rd birthday of the child

Before the end of March when the child is a 6th grade elementary school student

Exemption from overtime

Same as above

Same as above

Before the time of commencement of elementary schoolSame as above

Same as above

Same as above
Not applicable if a person at the age of 20 or older lives together

Not applicable if a person at the age of
16 or older lives together

5 days per child before March 31 of the year when the child isa 6th grade elementary school student(e.g. 10 days for 2 such children, 15 days for 3 such children)Childcare
5 days for a child before the time ofcommencement of elementary school,
and 10 days for 2 or more such children

Sick/injured child care leave

Not speciﬁed by law

Financial support

Not speciﬁed by law

Male employees can take leave when their spouses give birth(ﬁve paid holidays)
Preferential treatment in the use of the childcare menu in thecafeteria plan (selective welfare system)
Partial payment of bonus

Support ofpregnant women

Maternity leave 6 weeks before childbirth and 8 weeks after childbirth

8 weeks (including 2 weeks with no pay) before childbirth and 8 weeks after childbirth
For the second or subsequent child, 10 weeks after childbirth―

Accumulated paid holidays＊ can be used for fertility treatment, hospital visits, etc.

Establishment of internal childcare centers for children

Not speciﬁed by law

Establishment of internal childcare centers for children

Introduction ofa reemployment system

Not speciﬁed by law

Introduction of the reemployment system (available within 3 years or,for those who moved overseas, 5 years from the resignation)

Period of family care leave and numberof times an employee can take it

Up to 93 days per person

2 year per person; the leave can be taken on a daily basis

Other

Up to 93 days

During the period when a family member is in a condition of need for long-term care

Not speciﬁed by law

During the period when a family member is in a condition of need for long-term care

Limitation on overtime

Not less than 1 month but not more than 12 months per application
No limit to the number of times an employee can apply for the leave

Same as on the left

Limitation on night work

Not less than 1 month but not more than 6 months per application
No limit to the number of times an employee can apply for the leave
Not applicable if a person at the age of 16 or older lives together

Nursing care

Not speciﬁed by law

5 days per family member who is in a condition of need for long-term care(e.g. 10 days for 2 such persons, 15 days for 3 such persons)Available on a half-day basis
Accumulated paid holidays＊ can be used for nursing care of a family member
who is in need of speciﬁc nursing care or assistance (on a daily basis)
Introduction of nursing care support service
Preferential treatment in the use of
the family-care menu in the cafeteria plan (selective welfare system)
Partial payment of bonus
Introduction of the Anniversary Holiday Program

Encouragement of
employees to take paid holidays

Guidelines to encourage employees totake paid holidays

Increase in the number ofhalf-day paid holidays

Not speciﬁed by law

Increased to 30 times

Reduction of
total actual working hours

Speciﬁcation on maximum working hours,
working hours management standards, etc.

Implementation of the SWiTCH 17 Campaign

Volunteer holiday system

Not speciﬁed by law

Accumulated paid holidays＊ can be used

Dissemination ofwork conditions during andafter childcare leave

Not speciﬁed by law

Introduction of the Positive-oﬀ Holiday Program
Introduction of the Life Support Holiday Program

Supply Chain

Review of
work styles

Products &Services

Financial support

During the period when a family member is in a condition of need forlong-term care. Application can be made on a daily basis

Core
Category

Nursing care leave

5 days for a family member who is in
a condition of need for long-term care,and 10 days for 2 or more such persons

Governance

Shortening of work time
Exemption from overtime

Group's CSR Activities

Encouragement of maleworkers to take childcare leave

Available on a half-day basis
Accumulated paid holidays＊ can be used

Business Outline

Limitation on night work

Basis for Management

Limitation on overtime

Before the 3rd birthday of the child

Introduction of the Work & Life Program system
Distribution of Work & Life Handbook

Human
Resources

Disclosure on the corporate intranet(which can be browsed by employees at home)

Enlightenment
anddissemination

In-house notiﬁcation (posted on the corporate intranet)
Dissemination of systems,
legal beneﬁts, etc. and training

Published on the website of the Japanese Ministry of Health,Labour and Welfare to support work life balance

Not speciﬁed by law

Distribution of Work & Life Handbook
Organization of Work-Life Forum, etc.

Employees who tookchildcare leave
Male

FemaleTotal

Employees who took
leave when theirspouses gave birth

Employees who used
the short-time work system
Male

FemaleTotal

Enrollment in thereemployment
systemUsers of internal
child care centers forchildren

Users ofthe volunteer holiday
system3（3） 119（50） 122（53）

44

7

183

190

16

37

4

2009

4（3） 106（56） 110（59）

68

7

172

179

23

40

5

2010

3（3） 100（51） 103（54）

61

14

205

219

20

61

7

2011

2（1） 114（50） 116（51）

61

17

228

245

32

61

16

2012

12（10） 115（60） 127（70）

65

18

254

272

22

64

6

2013

15（2） 106（50） 121（52）

55

21

245

266

26

62

7

(Note) The data cover Sumitomo Electric.

Glossary ＊Accumulated paid holidays

SocialContribution

2008

Environmental
Preservation

Number of Users of the Employee Support Programs

The number in brackets indicates the number of the employees who took the leave for the ﬁrst time in the ﬁscal year

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.

SEI CSR Report 201452

To Eliminate Occupational Accidents

Basic Approaches●

Assistance and provision of guidance to enhance measures
to ensure safety

Considering that securing of health and safety of employees
is the basis of the business, the Sumitomo Electric Group
promotes the establishment of culture to prioritize safety
above all else and continuously performs safety and health

Safety measures for construction work and operation at height《 Promotion of Structural Reinforcement on a Company-wide Scale 》●

Development of safety global standard●

activities involving all employees to eliminate risk factors fromits workplaces and to reduce occupational accidents to zero.

●

Specifically, we have set medium to long-term Sumitomo
Electric Group Safety and Health Targets. To meet theDevelopment and training of human resources inJapan and overseas●

targets, we specify priority activities and priority subjects for●each fiscal year at the Health and Safety Committee, which iscomposed of members from management and the union.

●●

Sumitomo Electric Group Safety and Health Targets●

2．Maintaining and improving compliance

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

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

1．Realizing accident-free worksites andcreating comfortable working environments

Development of Sumitomo Electric's safety standard to
make it a global standard

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

3．Promoting employees' physical and mental health care

Activity targets for ﬁscal 2013

Strengthening of Global Safety Activities

No. of accidents resulting in lost work time: zero
No. of no lost work time accidents: 10 or less
● No. of accidents causing minor injury: 10 or less

We are promoting basic safety education,
as well as inspection and assessment activities,
on group-wide and global scales

Priority subjects for ﬁscal 2013

《 Development and Training of
Human Resources in Japan and Overseas 》●●

Exertion of management leadership in each division toensure participation of all employees

We have operated Kiban Kyoka training Program (KKP), a
program for reinforcement of manufacturing fundamentals, for
mid-level employees at production sites since January 2009.
The trainees attend seminars, including exercises, on thebasics of safety and health. They then perform activities to
put the themes into practice for approximately one month.
Training using the KKP textbooks was launched in China,
Malaysia, Thailand, Indonesia, Vietnam and the Philippines in2011 after the translation of the textbooks into therespective local languages. We conduct the training in thosecountries in line with the local conditions.
The number of the trainees was about 5,100 in Japan (95%

《 Reinforcement of fundamentals in each division 》●

Strong leadership by top management●

Establishment of activities involving all employees

Thorough adherence to prioritizing safety above all else

① Strengthening of the 1-2-3 activities
Site inspection by managers and supervisors andidentiﬁcation of problems through dialogues (changes,
diﬃcult operations, status of equipment management, etc.)②Thorough implementation of equipment safety measuresand maintenance (measures against failure, aging, ﬁreand explosion)③Activities to put into practice the lessons learned in Kiban
Kyoka training Program (KKP)＊●●

of the target number) during five years, and reached around
1,100 in other countries (94% of the target number) during

Establishment of work standards (including those forincidental and setup works)

three years. While disseminating
basic safety education, we will
work to enhance training

RA on the spot (observation of actual operations)④Elimination of accidents due to negligence such as trips and falls●

Warn each other of unsafe actions《 Strengthening of Weak Points on a Company-wide Scale 》●

Global safety evaluation●●

Cross-departmental activities●●

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

Introduction of individual accident prevention measures
into all other group companies

programs including education forimprovement, as well as risk
simulation education, which
enhances trainees' awareness ofsafety and sensitivity to risks.

Risk simulation training《 Group Global Safety & Maintenance Assessment Activities 》
We have conducted Group Global Safety & Maintenance

Plant disaster prevention activities

Assessment Activities since fiscal 2009. The purposes are:①Inspection of special material gas and combustible gas
facilities, electrical devices and outdoor utilities to
identify any problems and assess the degree ofobsolescence① Evaluation in terms of both soft and hard aspects in order
to eliminate unsafe conditions and unsafe actions.

Inspection of the management status of poisonous anddeleterious substances and dangerous materials② Evaluation and assessment of manufacturing sites in Japanand overseas by common standards in order to identify
weak points and improve them.

②Transmission of information on accidents
Prevention of similar disasters by conveying theinformation to the entire GroupWe have completed the first series of inspection at our
production facilities in and outside Japan, and started the●second series since fiscal 2013.

SEI CSR Report 2014

Glossary ＊Kiban Kyoka (reinforcement of fundamentals) Training Program (KKP)
Practical training on health and safety, quality and manufacturing (two- or three-day course)53

In fiscal 2013, we reduced the number of
the accidents involving injury by 7 from fiscal 2012

Accidents involving injury
TemporarySub
worker,total
subcontractor
Japan Overseas
Accidents resulting
in lost work time
No lost work
time accidents
Accidents involving
minor injury

10

10

4

24

7

10

1

18

1

1

1

Employees of
the aﬃliates of
the SWS Group

Total

Japan Overseas

3

0

5

8

1

12

55

18

21

6

45

1

17

63

7

1

2

10

1

0

11

13

7

3

23

8

6

5

19

1

7

50

Total

28

14

10

52

2

7

61

(Note 1) The number of accidents involving injury in the Sumitomo Electric Group
includes those in Sumitomo Wiring Systems, Ltd. (SWS) but excludes
those in aﬃliates of the SWS Group.
(Note 2) The data on employees of the Sumitomo Electric Group cover Sumitomo
Electric and its 46 domestic aﬃliates and 43 overseas ones.
Employees of the aﬃliates of the SWS Group refer to those in
11 domestic aﬃliates and 101 overseas ones.

GovernanceFrequency Rate＊ of Injuries with Lost Days for
Employees in Japan by Year
（Frequency rate）

2

1.9

1.83

1.8

Group's CSR Activities

Fiscal 2012

Total
Accidents resulting
in lost work time
No lost work
time accidents
Accidents involving
minor injury

Business Outline

Sumitomo ElectricGroup employees

Fiscal 2013

1.62

1.61

1.62

1.59

1.58

0.99

0.98

1.05

1.00

0.94

0

0.04

0.17

0.14

2009

2010

2011

2012

1.5

1

0.5

1.02

0.24

1.09

1.12

0.14

0.07

0

2007

2008

Manufacturing industry

0.02
2013 （Fiscal
year）

Sumitomo Electric Group(Note) The data cover Sumitomo Electric and its 46 aﬃliates in Japan,
excluding the aﬃliates of the Sumitomo Wiring Systems Group.

Products &Services

2006

All industries

Core
Category

During fiscal 2013, we had 45 accidents involving injury intotal, which were broken down into 3 accidents resulting inlost work time, 24 no lost work time accidents and 18
accidents involving minor injury (excluding employees of theaffiliates of the Sumitomo Wiring Systems Group). The total
number decreased by 7 from 52, that in fiscal 2012 with 10
accidents resulting in lost work time, 23 no lost work time
accidents and 19 accidents involving minor injury. Still, we
failed to meet the targets of zero accidents resulting in lostwork time, 10 or less no lost work time accidents and 10 orless accidents involving minor injury.
Looking at the injuries by situation, the majority of the injuries
were due to recurrence of past accidents, such as injury byinserting a hand into rotating/moving parts, injury during use
of jigs, tools and dies and injury due to an obstacle in thebuilding or on the floor. These accidents were attributed tounsafe actions caused by underestimate of risks, difficult
operations and violation of rules, as well as equipment
issues such as insufficient safety devices. Potential factors
behind these causes include wrong assumption that it is safe
because no accident has occurred, insufficient daily guidanceby managers and supervisors and equipment design that fails
to meet the global standard.
Based on these results, we will be committed to 1) workplaceinspection tours by managers and supervisors (1-2-3 activities) to
identify difficult operations and defects in safety devices andenhance activities for improvement and 2) strengthening of efforts
to introduce measures for prevention of accidents and injury
across the Group to eliminate similar disasters, in fiscal 2014. We
will also put into practice the lessons learned in KKP to promote3) further improvement of risk assessment (a measure to avoid
underestimate of risks), 4) strengthening of the system to provide
guidance on safety through managers and 5) prevention of unsafe
actions by expanding the risk simulation education.

Meanwhile, the number of events involving injury is increasingin overseas facilities. We are working to enhance theleadership of the parent divisions (Business Units) and further
promote development of staff in charge of safety education,
safety inspection and safety management, as well as
introduction of equipment safety measures.

Basis for Management

Safety Performance and Future Actions

CSR VOICE
CS
Supply Chain

We are working to eliminate accidents from the workplace
Hikaru Chikasawa Manager, Safety & Environment Group, Itami Works
Itami Works is a core center for Sumitomo Electric's non-electric wire business, and consists of seven Product Groups
and the related R&D Group, as well as Corporate Staff Group, with a total of about 2,600 employees. With one
accident involving injury, the safety record of Itami Works in fiscal 2013 showed significant improvement from that interm. While we have encouraged the divisions to promote thorough risk assessment to prevent accidents involving
injury for many years, it is also necessary to periodically review the risk assessment because the working environment(equipment, arrangement, operation method, etc.) changes over time. The accident involving injury in the previous fiscal year could have been

Human
Resources

fiscal 2012 (four). Still, it was a regrettable result because we worked to reduce accidents to zero throughout the

avoided if the risk assessment of the operation in question, which had been completed 10 years ago, was reviewed again. Accordingly, weregard the review of risk assessments conducted in the past as a top priority initiative for fiscal 2014. We will endeavor to eliminate accidents
and disasters by identifying the unidentified potential risks that can cause disasters and taking various measures to address them.
trained 38 people to be trainers and made it mandatory for all employees in the Works, ranging from factory
workers to office staff, to take risk simulation trainings (photo in P53). We believe that thorough implementation ofthis training will enhance employees' sensitivity to risks and awareness of safety at the respective levels.
An important means to prevent unsafe actions is use of the five senses, and one of the tools using them is checking

Environmental
Preservation

In the meantime, when a risk simulation room was created at Technical Training Center in Itami Works in 2012, we

by finger pointing and calling. Making this a habit can help eliminate work-related human errors and prevent traffic
accidents. We are developing enlightenment activities, such as installation of checking by pointing and calling
division, so that all staff in the Works make it a habit to check by pointing and calling.
Through the above-mentioned activities, the Safety & Environment Group will keep doing its best to achieve the targetof reducing accidents to zero under the Itami Works' slogan newly adopted in fiscal 2014, Work together to create a
PosterSocialContribution

signs around the crossings in the premises and display of the posters to promote it in each building and each

workplace with zero accident by being alert to all potential risks including even small ones in the workplace.

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.

SEI CSR Report 201454

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 topreservation of the global environment.

Environmental Policy (extract)※Core Category

Basic Philosophy

Environmental
Preservation

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.

Priority Theme

Preventio
on of
Global Warmingg●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

Main Targets for Fiscal 2013

2. The Group will fulﬁll and enforce environmental management system.
Provision of educational programs on environmental
preservation and implementation of environmental audits

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

3. The Sumitomo Electric Group will maintain and improve
compliance action.

Conduct environmental audits
In Japan: Promote the second series of audits with focus
on prevention of environmental accidents
Overseas: Conduct audits at 8 Group companies

4. The Sumitomo Electric Group's Environmental Policy will be
opened to the public upon request.

Improve environmental education
In addition to the existing systematic education, introduce
case studies using the past incidents of hiyari , or near-missResponse to Environmental Risks and Opportunities
through Environmental Management

Results in Fiscal 2013

Environmental activities include pursuit of efficient production
and reduction of unnecessary use of resources and energy,
which also lead to a more robust cost structure.

Out of the 14 items, Target achieved (◎, ○, △): 12 items,
Performance unchanged (▽): 1 item,
Performance deteriorated (▼): 1 item

The Sumitomo Electric Group actively develops activities to identify
environmental risks and respond to them based on the recognition
that such activities not only reduce the risks and avoid damage to our
reputation, but they also provide opportunities to increase thecorporate value as well as business opportunities.

In Japan: Assessed facilities' water quality at 11 sites
Overseas: Conducted legal compliance audits at 9 sites,
assessed facilities' water quality at 7 sites
Provided position-based training on the subjects of environment
in general, environmental laws, chemical control and global
warming with content including inspection of environmental
facilities and the issues indicated in past inspections

Main
environmental risks

Main Targets for Fiscal 2014
Achieve the targets in all items in the Action ECO-21(Phase Ⅴ) campaign
Conduct environmental audits
In Japan: Promote the second series of legal compliance
audits, and continue the examination offacilities in terms of water quality
Overseas: Conduct audits at 9 Group companies in
the Americas. Start the examination offacilities in terms of water quality withsites in China including those that haveundergone legal compliance audits
Improve environmental education
In addition to the existing education
programs, introduce practical training
using the past incidents of hiyari ornear-miss and issues indicated in past
audits into all courses in theposition-based training and into
construction work training

Opportunities and speciﬁc activities

Complianceviolation

Detailed environmental audits are conducted in all sites andaﬃliates in Japan and overseas to identify any events thatcan result in violation of environmental laws and to takemeasures to address them.

Emission ofpollutants

We assess environmental facilities in all sites in Japan andoverseas and take measures that prevent environmental
problems.

Chemicalcontamination

We prepare guidelines on chemical control in the factories
handling poisonous and deleterious substances, etc., anddevelop activities to inspect and improve the control of chemical
substances in all sites and aﬃliates in Japan and overseas.

Global warming

Various energy saving initiatives are actively promoted, including
the energy saving diagnosis program to identify the items to be
improved, because such activities serve as measures to prevent
global warming and also reduce energy cost.

Waste reduction /resource saving

We actively engage in eﬀorts to reduce waste generation
through recycling, conversion of waste into valuable
materials and reduction of waste volume, and also promote
such activities from the perspective of material ﬂow.

Chemical
substances in
products

We ensure commitment to this issue to maintain our
reputation and prevent occurrence of recovery cost andcompensation for damage.

Environmentallyconscious
products

By producing many lines of environmentally conscious
products, we seek to enhance the value of our products andincrease our market share.

SEI CSR Report 2014

55

Web

※ See our website for details.

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

Corporate Environment Committee

We oversee the Group's environmental preservation
activities on a global basis
The Corporate Environment Committee is the supreme Group
organization for making decisions related to environmental
management. It oversees the entire Group's environmental preservation
activities on a global basis.

Environment Task Committees
Business Unit Environment
Committees

Internal Environment
Audit Teams

No significant environmental violation was identified in
the Group including overseas sites in fiscal 2013

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

Targets and Results of the Action ECO-21 (Phase Ⅴ) Campaign (Period: Fiscal 2013 ‒ 2014)
Item

Fiscal 2013 results Evaluation

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

Reduce 2% from FY 2012

Reduce 1% from FY 2012

Reduced 17%◎

Reduce greenhouse gas emissions(in Japan and overseas)

Reduce 2% from FY 2012

Reduce 1% from FY 2012

Reduced 1.5%○

①Reduce energy consumption per unit of sales
through energy saving (in manufacturing sites)[Consumption in crude oil equivalent / Sales](4% per annum;
reduce 20% in 5 years)

Reduce 4% from FY 2012

Reduced 13%◎②Reduce energy consumption per unit of sales
through energy saving (Oﬃce)[Consumption in crude oil equivalent / Floor area]

Reduce 2% from FY 2012

Reduce 1% from FY 2012

Reduced 22%◎③Reduce CO2 in logistics per unit of sales

Reduce 2% from FY 2012

Reduce 1% from FY 2012

Reduced 2.7%◎

0.3% or less

0.3% or less

0.1％

◎

Reduce 2% from FY 2012

Reduce 1% from FY 2012

Reduced 9.9%◎

5% or less

5% or less13％▽

Reduce 2% from FY 2012

Reduce 1% from FY 2012

Reduced 16.6%◎（1）
Reduce the zero emission rate (in Japan)（2）
Reduce waste
Promotion of(excluding valuable materials) (in Japan)
resource
conservation （3）Reduce the zero emission rate (overseas)
and recycling（4）
Reduce water use per unit of sales[Water use / Sales]

Reduce 1% from FY 2012

Increased 8.2%▼

（2）
Use no hazardous substances(to comply with the RoHS and ELV Directives)

Prepare for discontinuing useof all of the substances to bepotentially banned by the
RoHS Directive (phthalates
and some bromine-based
ﬂame retardants) Set thenumerical target in Phase Ⅵ

Prepare for discontinuing useof all of the substances to bepotentially banned by the
RoHS Directive (phthalates
and some bromine-based
ﬂame retardants) Set thenumerical target in Phase Ⅵ

Completedinvestigation of
the use ofphthalates

○

１００％

１００％

100% (128)

○

50％

45％

41％

△

Contribute to reducing CO2
emissions by 100 thousand
tons/year

80 thousand tons/year

59 thousand
tons/year△（1）
Register Eco Mind products
Expansion ofenvironmentally （2）Increase the ratio of Eco-products in sales
conscious
product range （3）Reduce CO2 emissions by productswith less CO2 emissions

Human
Resources

Environmentallyconscious product

Reduce 2% from FY 2012

Supply Chain

Reduction of
the harmful
chemical
substances（1）
Reduce emissions of volatile organic
compounds (VOCs) (in Japan and overseas)

Products &Services

Targets for ﬁscal 2013

Core
Category

Reduction of environmental impacts from business activities

Globalwarmingprevention

Targets for ﬁscal 2014

Governance

Environmental
eﬃciency

Descriptions

Group's CSR Activities

The business units investigated their sites in Japan and overseas
concerning compliance with laws, and reported no significant
environmental violation in fiscal 2013.
On the other hand, an affiliate in Taiwan received an order from theauthority to pay a fine for emission of white smoke and insufficientfacility performance management in May 2014.

Divisions

Business Outline

Works Environment Committees

Compliance with Relevant Laws

Basis for Management

President

Organizations for Promoting Environmental Management

Legend ◎：Target achieved and 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)

In fiscal 2013, environmental efficiency was
improved by 17% from the ﬁscal 2012 level＝Monetary value of environmental impacts (CO2, wastes, harmful substances, NOx and SOx) / Sales

16

15.59
12.98

12

15.28

8
4
0

2012 Base2013 Result2014 Target(Fiscal year)(Note 1) Data on CO2 emissions and wastes are collected from Group companies in Japanand overseas while those on harmful substances, NOx and SOx are from Group
companies in Japan only.
(Note 2) A diﬀerent method for calculation of CO 2 emissions (CO 2 emission factor forpurchased electricity) was used this ﬁscal year (see P60). Accordingly, theenvironmental eﬃciency for the past ﬁscal years has also been corrected retroactively.

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

SocialContribution

The Sumitomo Electric Group has introduced environmental
efficiency, which is deﬁned as the sum of the damages ofvarious environmental impacts (converted into monetary value
according to LIME＊, a life cycle impact assessment method
based on endpoint modeling) divided by sales, as agroup-wide indicator on environmental management.
We will continue to enhance our efforts to meet the targets
for the Action ECO-21 (Phase Ⅴ) Campaign on a global scale.

Environmental Eﬃciency
Environmental
eﬃciency（×10−4）

Environmental
Preservation

Monitoring Based on Environmental Efficiency

SEI CSR Report 201456

Education and Training

provided systematic education on general environmental

We provide systematic education programs on
environmental conservation

warming as part of the position-based training program.

To realize environmental management, the Sumitomo Electric

the fiscal year.

issues, environmental laws, chemical control and global
A total of 582 employees participated in 34 sessions during

Group works to enhance every employee's environmental
awareness and knowledge. We provide all employees witheducation on the history of measures to protect the global
environment as well as the Group's environmental policy andthe Action ECO-21 Campaign. In fiscal 2013 as well, we
Training system

Training menu
General environmental
education
Legal andcompliance education

Generaltraining
Sectoraleducation《 Audit Implementation Plan and Its Progress 》

Environmental awareness education

The Sumitomo Electric Group implements audits based on

Sumitomo Electric Group's
environmental activities

ISO 14001. In addition, to ensure compliance with relevant

Education on environmental laws

laws and reduce even more environmental impact, we have

Education on legal issues
ISO 14001 internal auditor education

conducted environmental audits with a focus on compliance

EnergysavingEducation on energy saving methods andthe improvementwith environment-related laws and the efforts in the Action

Eco-Life
Activities

Sumitomo Electric Group Eco-Life Activities

Waste

Waste separation and treatment

Position-based General environmental
and sectoral training
training
Sectoraleducation

We also implement audits of overseas sites according to
the environmental laws in the countries andregions where they are located

ISO14001

Chemical
substances

On-sitetraining

Title of the training

Global Environmental Audits

ECO-21 Campaign since fiscal 2008, and finished the auditsof all 53 manufacturing sites in Japan by the end of fiscal
2011. We are now planning the second round of the audits.

Management of harmful
substances contained in products

Environmental audits of manufacturing sites outside Japan

Management of poisonous anddeleterious substanceswere also started in fiscal 2010.

Environmental laws, chemical control,
energy saving

Following the audits of 11 sites in China in fiscal 2010 and of

EnergysavingEducation on energy saving methods
and the improvement

OthersOther education

four sites in Thailand and four sites in Malaysia in fiscal 2011,
as well as the audits of three sites in China and four sites inIndonesia in fiscal 2012, we conducted audits of three sites inEnvironmental Accounting

Financial items(New Approach to Calculation and Disclosure)
Since our CSR Report 2010, we have collected andInvestment

Expense

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

2011 2012 2013 2011 2012 2013 2011 2012 2013

disclosed environmental accounting data based on a
new disclosure approach in reference to the concept

Investment inenergy savingof the Connected Reporting Framework (CRF)＊.

Reduction ofenergy cost

(Note 1)

(Note 1)

Boundaries of tabulation: Sumitomo Electric + domestic aﬃliates(Note 1) Only the amount of investment in the activities mainly aimed atenergy saving among the activities certiﬁed as energy saving
activities by the Energy Saving Oﬃce of the Safety & Environment
Department is subject to the calculation (the activities mainly forthe purposes other than energy saving, such as renewal of aging
facilities and peak cut, are not covered). The economic eﬀect
includes that of the energy saving activities in which no investment
has been made.

Reduction ofgreenhouse gas
emissions
1,382 1,303 2,717

353

384

534

(Note 2) The amount of investment does not include investment related toeﬃcient use of resources but covers investment for reduction ofwaste generation and recycling.
(Note 3) The cost is calculated based on payment to the waste disposal
contractor. Metals are not included in the calculation of either
cost or economic eﬀect.
(Note 4) Change due to boundaries change: Emissions or amount of waste
in ﬁscal 2012 from the boundaries of collection newly added or
excluded in ﬁscal 2013 (no boundaries were newly added or
excluded in this ﬁscal year).

Investment inresource saving
and recycling

Waste
disposal cost

(Note 2)

Sale ofvaluables materials(Note 3) (Note 5)(Note 3) (Note 5)

Waste
reduction

Change due to sales change: [Emissions or amount of waste inﬁscal 2012 from the boundaries of collection for ﬁscal 2013] x(Sales in ﬁscal 2013 / Sales in ﬁscal 2012 - 1)

115

49

23

1,097 1,017

983

91

91

Actual change: Calculated by subtraction(Note 5) Values for the past years have been adjusted retroactively to
improve the accuracy.

Cost ofmanagement activities

1,092 1,070 1,157(Note 5)

SEI CSR Report 2014

57

Cost ofsocial activities

10

9

6

Cost of environmental
remediation

14

12

8

Glossary ＊Connected Reporting Framework (CRF)
A reporting scheme developed in the U.K. that integrates ﬁnancial andnon-ﬁnancial information in the disclosure.

107

《 Conﬁrmation of Legal Compliance 》

two sites in Taiwan in fiscal 2013. As a result, we have

In Japan, we conduct audits to confirm compliance with 120

completed 35 of the 47 sites subject to audits as of the end

items of 23 environmental and related laws as well as theof fiscal 2013. In fiscal 2014, we have scheduled to audit

ordinances of the prefectures and municipalities where theeight sites in the United States.

sites are located. Overseas, we also investigate theFor our domestic sites, to prevent environmental accidents,

environment-related laws in the countries and regions where

we launched the evaluation of facilities that may affectour global facilities are located, and carry out audits based

effluent quality in fiscal 2012, and evaluated nine sites inon the results.
Business Outline

fiscal 2012 and 11 sites in fiscal 2013. We also started theBasis for Management

China, two sites in the Philippines, two sites in Vietnam andevaluation of overseas facilities in fiscal 2013, and evaluatedseven sites during the fiscal year. The evaluation of facilities inJapan and overseas will be continued in fiscal 2014.

《 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
status on the check items set for each of the parts such as
liquid storage and pipes.

《 Action ECO-21 》
overseas to audit their activities and progress.
Audit work in Vietnam

Governance

We have set 60 check items for our sites both in Japan andNon-ﬁnancial items
Change factors in ﬁscal 2013 (in Japan)

Reduction rate (%)

2.6
900
750

752

0
746

727

0
5

2

GHG emissions(thousand tons-CO2e/year)
900
750

746

0

31

600

15

450

20

600
450
300

150
150
0

2011 2012 2013 Target (Fiscal

year)

0

GHG emissions

2012 Change due Change due Actual
to boundaries
changeEmission reduction rate(from the ﬁscal 2012 level)

2
50
40

0
35.5 33.7

30

Reduction
rate (%)
0

9.9

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

year)(Note 4)

50

5
10

30.4

15

40

33.7

0

1.4

30

20

30.4
▲4.7

20
20
10

2011 2012 2013 Target (Fiscal

year)

0

Amount of waste

2012 Change due Change due Actual

Waste reduction rate (from the ﬁscal 2012 level)

to boundaries
changeto saleschangechange2013 (Fiscal

Investment was made in the expansion of waste liquid treatment
facilities. While treatment of waste liquid is outsourced in some cases,
internal treatment results in reduction of CO 2 emissions fromtransportation and overall cost when the amount of waste liquid islarge.
We also perform activities to covert waste into valuable materials, andthe achievement is represented by the gradual growth of the sales ofvaluable materials. In addition, we have initiated initiatives to optimize
production and treatment processes and thereby reduce generation ofwaste. We will continue to promote these improvement activities
aggressively.

year)

The cost increased from the previous ﬁscal year. ISO 14001 is aneﬀective environmental management system, and the certiﬁcation isrequested by customers.

Cleanup of areas outside company sites,
external environmental education, etc.

We have participated in cleanup of the neighboring areas actively formany years, and will continue our commitment to this initiative, whichis also an eﬀective method for communication with local communities.

Restoration of contaminated soil and groundwater

We continuously restore the contaminated soil and groundwater
identiﬁed in our facilities.

SocialContribution

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

Environmental
Preservation

1002013 (Fiscal

changeHuman
Resources

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

to saleschangeIt is still uncertain when power supply, which has been unstable as a resultof shutdown of nuclear plants following the earthquake disaster in 2011,
will be stabilized.
In addition, increases in electricity cost due to the rising oil prices aﬀect
operations of our manufacturing sites in Japan and other Asian countries.
This is a crucial challenge for the business activities of Sumitomo Electronic,
which require a large quantity of energy for wire drawing machines,
furnaces and other equipment.
To address these issues, we have continued to make investment inenergy-related initiatives, such as introduction of equipment that improvesenergy eﬃciency, since the previous ﬁscal year. Through investment mainly
aimed at energy saving, we will reduce energy consumption. Energy cost
continues to be a risk factor obviously, and we will make best eﬀorts forenergy saving and other measures to address the electricity issues. While
greenhouse gas emissions from our domestic facilities are on the decrease,
our overseas sites, as well as their production volume, are increasing. We
will maintain the enhanced energy saving activities and also introduce themeasures successfully taken in Japan into the overseas facilities to reduce
the emissions.

Supply Chain

300

727
▲50

10

Strategy/opportunity and risk

Products &Services(Note 4)GHG emissions(thousand tons-CO2e/year)

Core
Category

Performance (in Japan)

SEI CSR Report 201458

Materials Flow (Environmental Impacts)

INPUT

OUT PUT

DesignGreenhouse gas emissions

Materials
259 thousand tons

CO2

Iron

302 thousand tons

Other gases

Aluminum

22 thousand tons

Resin

94 thousand tons

Copper

Air pollutant emissions

14 thousand tons

NOX ＊129 tons

SOX ＊5 tonsChemical substance emissions

EnergyInto the air

2,115 million kWh

LPG

9 thousand tons

City gas

49

Manufacture

79 tons

Into the water

5 tonsAs industrial waste

million m3

Other fuels

143 tons

Wastes (excluding valuable materials)(converted into crude oil equivalent)

9 thousand kl

Water

12 thousand tons

(converted into CO2)

Chemical substances

Electricity

1,396 thousand tons

General wastes

14 thousand tons

Industrial wastes

42 thousand tons

11,835 thousand m3
Recyclable materials 49 thousand tons

Product packaging materials
55 thousand tons

Wastewater

10,118 thousand m3

Products

Product shipments 453 thousand tons

Logistics

CO2 emissions ＊Transportation fuel(converted into crude oil equivalent)＊

14 thousand kl●

Materials (copper, iron, aluminum and resin): Total
quantity of the product materials managed on aweight basis (those used by a business unit in theamount of 100 tons or more in total)●

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

Chemical substances : Substances speciﬁed in the
PRTR Law and equivalent laws in other countries●

Electricity : Purchased from electric powercompanies●

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

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

Product packaging materials : Corrugatedcardboard, paper, resin and wood●

Transportation fuel : Gasoline, gas oil etc.

Boundaries of data integrationUse

38 thousand tons●

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

Greenhouse gases other than CO2 : SF6, HFC, PFC
and other greenhouse gases converted to CO 2
equivalent●

NOx : Nitrogen oxides emitted from the use of gas
and liquid fuels●

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

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

Industrial wastes : Wastes speciﬁed in the "Waste
Management and Public Cleansing Law," including
sludge, waste oils, waste acids/alkalis, waste
plastics, metals, glass, ceramics, cinders and othersubstances generated through business activities●

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

Items with ＊: Sumitomo Electric + domestic aﬃliates; Items without ＊: Sumitomo Electric + domestic and overseas aﬃliates

Explanation of the Boundary
In promotion of environmental management, Sumitomo Riko Co., Ltd., Nissin Electric Co., Ltd. and Sumitomo Densetsu Co., Ltd., which arelisted 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 theboundaries of consolidation for financial reporting.
When the comprehensiveness of the boundaries is assessed based on greenhouse gas emissions, a representative environmental indicator, theemissions from the boundaries of the environmental management of our Group, 1,408 thousand tons, account for the vast majority of 1,600
thousand tons, which are estimated greenhouse gas emissions from the boundaries of consolidation for financial reporting in fiscal 2013.
In the meantime, out of the 232 consolidated subsidiaries excluding the 3 listed companies mentioned above , the environmental
management of our Group covers 143 companies in production units (46 in Japan, 32 in China, 31 in Asia (except China), 14 in the Americas
and 20 in Europe and other in fiscal 2013). Our trial calculation indicates that environmental impact, such as greenhouse gas emissions, of the
143 companies is estimated to occupy 99% of that of the 232 subsidiaries.

SEI CSR Report 201459

Activities to Prevent Global Warming

We reduced CO2 emissions both inJapan and overseas

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

Basis for Management

Reduction of Greenhouse Gas Emissions

251

1,600

The Sumitomo Electric Group sets the targets of reducing
GHG emissions by 1% and energy consumption per unit of

1,429

1,408

1,400

▲2

sales by 4% from the fiscal 2012 level in fiscal 2013 in the
Action ECO-21 (Phase Ⅴ) Campaign. Various energy saving

▲270

1,200

aggressive targets and prevent global warming.
Specifically, to meet the target of reducing GHG emissions by

1,000

4%, each division/affiliate collected ideas from such0

perspectives as production conditions, implementation of2012

quality measures, improvement of productivity and reductionof failure. Division/affiliate staff then inspected main facilities
helped improve their energy saving activities. The divisions

Change due tosales change

Actualchange2013(Fiscal year)(Note) Change due to boundaries change: Emissions in ﬁscal 2012 from the boundaries ofcollection newly added or excluded in ﬁscal 2013.
Change due to sales change: [Emissions in ﬁscal 2012 from the boundaries of collection forﬁscal 2013] x (Sales in ﬁscal 2013 / Sales in ﬁscal 2012 - 1)
Actual change: Calculated by subtraction

also cooperated with the Manufacturing Management &Engineering Unit (Energy Saving Office, Plant Engineering
Department, Sumitomo Electric Technical Solutions, Inc.) to

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

develop energy saving measures in priority areas.

800

As a result of these efforts, we reduced GHG emissions both700

of 1.5% across the Group. Energy consumption per unit of600

sales also dropped by 13%, partly due to the production

746 727

Governancein Japan and overseas in fiscal 2013 with an overall reduction

500

growth in fiscal 2013.
We have introduced currently available latest data on CO 2400

emission factor (see Note) in Phase Ⅴ, and disclosed the values

300

adjusted according to them retroactively in fiscal 2010. The

200

263 263 279 267

latest data reflect the impact of the increases in GHG emissions
48 47

In fiscal 2014, we will develop energy saving activities on aCore
Category

93 104100in Japan as a result of shutdown of nuclear power plants.

0Europe, etc.

global scale to meet the annual targets of reducing GHG

China

Asia

Japan

America(except China)

2013

Products &Services

2012

emissions by 2% and energy consumption per unit of sales by
8% from the fiscal 2012 level.
Greenhouse Gas Emissions and Reduction Ratio(in Japan and overseas)
0

Emissions converted to CO2 equivalent(thousand tons-CO2e/year)

1,351

1,400

1,429

1,385

2

1,408

1,400

0
1
2

1,200

633

582

1,000

683

681

Reduction of Energy Consumption
Supply Chain

1,600

Reduction ratio (%)

1.5Group's CSR Activities

based on the information gathered on those ideas andChange due toboundaries
changeBusiness Outline

activities were promoted in the fiscal year to meet these

While the absolute value of energy consumption is
on the increase, the value per unit of sales is dropping
We reduced energy consumption per unit of sales by 13%

800

from the fiscal 2012 level in fiscal 2013.

600
400

752

746

727

Energy Consumption and Energy Consumption per Unit of Sales(in Japan and overseas)

0

2010

In Japan

2011

Overseas

2012
Base

2013
Result2014
Target(Fiscal year)

Energy consumption(TJ/year)

Reduction ratio

Basic policy on the emission factors: ﬁxed emission factors are applied to the values forall ﬁscal years presented in the graph.
CO2 emission factor for purchased electricity[In Japan] Actual emission factor of each electricity power supplier published in the
Disclosure of actual emission factor, adjusted emission factor, etc. of eachelectricity power supplier for ﬁscal 2012 (2013) by the Japanese Ministryof the Environment[Overseas] Emission factor in each country for 2011 mentioned in CO2 Emissions from
Fuel Combustion Highlights 2013 (2013) by IEA(Note 2) A revised CO2 emission factor was adopted for purchased electricity this ﬁscal year, andthe values for the previous ﬁscal years have been corrected according to the new
emission factor retroactively. For reference, GHG emissions based on the old emission
factor in ﬁscal 2013 were 508 thousand tons-CO 2 e in Japan and 825 thousand
tons-CO2e in other countries.

37
32

30,00025,00022,45322,65823,13723,537

2010

2011

2012
Base

2013
Result

34

40
38
36
34
32
30

20,00015,00010,000
5,000
0

2014
Target(Fiscal year)

Domestic and overseas operations
Energy consumption per unit of sales

SocialContribution

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

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

38

Environmental
Preservation(Note 1) GHG emissions are calculated based on the Greenhouse Gas Emissions Accounting andReporting Manual Ver. 3.5 (2014) by the Japanese Ministry of the Environment andMinistry of Economy, Trade and Industry (except the emission factors, which are
mentioned below).

38

Human
Resources

769

200

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

SEI CSR Report 201460

Disclosure of Environmental Information
We are actively promoting disclosure ofenvironmental informationcase, Shigaraki Works of Sumitomo Electric Wintec, Inc. is taking
the following measures in cooperation with overseas affiliates:●

Measurement-based evaluation： To make visible the effect ofenergy saving activities, we determine the number of steam
and air leaks, the amount of energy loss in steam traps, andcompressors' power consumption, etc. Measuring instruments
will generate more approximated figures of the activity effects.
In fiscal 2014, we launched measurement and analysis ofpower consumption during holidays and at night, as well as thediagnosis in overseas affiliates.

●

Cooperation in priority areas：In addition to the equipmentrelated energy saving measures proposed in the energy saving
diagnosis program and other conventional initiatives, measures
to improve overall efficiency on intangible aspects including
production engineering and equipment utilization rate arepromoted through cooperation between divisions, business
units and Energy Saving Engineering Department of Sumitomo
Electric Technical Solutions, Inc.

●

Adoption of relevant technologies and use of external
engineering companies： The operation of high-efficiency
pumps and improvement of heat insulation in steam pipes,
which sometimes require special technologies, are outsourced
to companies with the know-how.

We respond to requests from external organizations for supply of
information, and also answer to CDP＊ from ﬁscal 2009, toactively promote disclosure of environmental information.

Greenhouse Gas Emissions in Fiscal 2013 (thousand tons-CO2e/year)
Scope １

162

Scope 2

1,246

Scope 338

(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: Other indirect emissions from logistics, use of products, travel by personnel, etc.
(Note 2) Scope 3 in the table above covers the data on logistics in Japan only.

Energy Saving Activities in Production Units
We will work to reduce wasteful use and improve efficiency
with the effects of ideas for energy efficiency improvement
The Sumitomo Electric Group as a whole annually emits about 1.4
million tons of CO2, and its overall energy cost reaches approximately
28 billion yen in a year. We are fully committed to energy saving
activities through reduction of wasteful use and improvement ofefficiency, which are also aimed at offsetting the increases inelectricity charges after the Great East Japan Earthquake.

Energy Saving Activities in Offices
Offices other than manufacturing sites also
promote energy saving activities《 Proposal of 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 fromfiscal 2013. In the meantime, the divisions that engage in energy
saving by proposing ideas for energy efficiency improvement
have also set the target of reducing the absolute energy
consumption by 4% from the fiscal 2012 level with the expected
effects of such ideas.
Group companies and divisions are implementing the ideas
under the slogan of reduction of 4% with the effects of ideas forenergy efficiency improvement. As a result, energy consumption
was reduced by 4.3% year-on-year in fiscal 2013. Energy
consumption per unit of sales, which is set as an indicator for
Action ECO-21 Campaign, also dropped by 13%.
The number of subjects in the submitted ideas and cost
reduction effect are presented below.

We reduced greenhouse gas emissions per unit of sales in offices
by 22% from the fiscal 2012 level in fiscal 2013 while the target is
set to be reduction of 2% from in fiscal 2014.
To promote the efforts, we have assigned a member and a vicemember of the Workplace ECO Activity Promotion Committee ineach workplace in the head office, district offices and branch
offices (on a division or group basis). The committee members
have taken energy saving initiatives and formulated rules topromote and establish the following activities:

Number of Subjects in the Submitted Ideas andCost Reduction Eﬀect by Fiscal Year

Energy Saving Activities in Households(million yen/year)

600

548

500
400
300
200

610

(subject/year)

800
600

549

100

611

497

2008

2009

Cost Reduction Eﬀect

2010

2011

2012

400

464

328

166

0

622

363
227

2013

200
(Fiscal year)

0

Number of Subjects in the Submitted Ideas《 Measures Taken for Energy Saving 》
In Japan, we inspected 45 main facilities and identified thosewhich were expected to achieve insufficient energy saving effect.
Those facilities took such measures as energy saving evaluation,measurement-based evaluation, cooperation in priority areas,
adoption of relevant technologies and use of external
engineering companies, and employed new ideas. Overseas
facilities are also committed to energy saving activities incooperation with their respective mother factories. As a pilot

SEI CSR Report 2014

① Dressing cool in summer and warm in winter,to keep air conditioning moderate② Turning off all office lights during lunch break③ Turning off lights and air conditioners in meeting rooms andtoilets when not in use④ Introducing economy mode for PCs⑤ Turning off or down unnecessary lights etc.

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

716

700

61

We will continue to work to meet the target of annual reduction
of 4% in fiscal 2014 by using the PDCA(plan-do-check-act)cycle .

The Sumitomo Electric Group worked for Eco-Life Activities topromote energy saving activities in households from fiscal 2008,
and made efforts to meet the target of reducing CO2 emissions
from households by 5,000 tons per year until fiscal 2012. As aresult, CO 2 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 to the participants based on the points
obtained from the use of the website.

Glossary ＊CDP (former name: Carbon Disclosure Project)
In CDP, an international NPO, institutional investors collaborate to implement a project that requests
companies to establish strategies against climate change and publish data on greenhouse gas emissions.

Basis for Management

Power Saving RE

P O RT

We are developing new approaches toenergy saving activities to achieve
the aggressive energy saving target in
the Action ECO-21 Campaign

Business Outline

Sadamitsu Miyake
General Manager of Manufacturing Department, Sumitomo Electric Wintec, Inc.

as intangible efforts such as shutdownof unnecessary devices, improvementof productivity and reduction of
failure. The efforts in these new
approaches, along with visualizationof the effects with actual figures,
allowed Head Office and Shigaraki
Plant to save energy of 376 MWh in
total per month in fiscal 2013. In fiscal Replacement of a pump in
2 0 1 4 , w e w i l l w o r k t o m e e t t h e the eﬄuent treatment plantwith a high eﬃciency pumpenergy saving target of 1,000 MWh
per month within two years through equipment-related efforts
such as heat insulation of softening furnaces and intangible efforts
such as reduction of down time and improvement of catalyst
combustion efficiency.
PT. Sumitomo Electric Wintec Indonesia, our manufacturing site inIndonesia, also achieved the very challenging target of reducing
annual energy consumption by 17% in
fiscal 2013. While the target was 183
MWh/month, the actual result
reached 232 MWh/month. This
performance demonstrates the effectsof our initiatives including sharing ofenergy saving measures and follow-up
of activities through monthly
conference calls of the energy saving Reduction of the revolution
review committee with Head Office speed of the paint feed pumpby installing an invertor
and Shigaraki Plant.
We believe that the energy saving activities of the Sumitomo
Electric Group will progress smoothly to make majorachievements and also help prevent global warming.

GovernanceCore
Category
Products &Services(From left)

Group's CSR Activities

Sumitomo Electric Wintec, Inc. develops the business of magnet
wire, which is a key component in electronic parts forautomobiles, industrial motors, information communicationequipment, etc., on a global scale. As the company consumes
more than 10% of the power used in the Sumitomo Electric Group
as a whole, we consider energy saving as one of the three main
management policies, and have promoted energy saving activities
to meet the target of reducing more than 2% of electricity
consumption in a year in conjunction with the Action ECO-21
Campaign, an energy saving initiative of Sumitomo Electric. We are
now committed to energy saving efforts to achieve the aggressive
target of offsetting the recent increases in electricity rates in two
years because the substantial price hikes after the Great East
Japan Earthquake had a material impact on our business results.
In the meantime, our factories in other countries such as Thailand
and Indonesia have also faced significant increases in electricity
prices. With recognition of the need to make energy saving efforts
on a global scale, we are now introducing the energy saving
measures developed in Japan into other facilities after adjustmentof the measures to each facility.
In the energy saving procedure, Shigaraki head office of Sumitomo
Electric Wintec have worked together with the Safety &Environment Department of Sumitomo Electric to make detailed
assessment of energy saving efforts on equipment in
manufacturing sites and prepared a list of energy saving measuresin a way that their effect, budget, profitability and actual results
can be checked. Key measures included initiatives involving
modification of equipment such as photovoltaic power generation,
introduction of inverter pumps, replacement of compressors withroots blowers and improvement of heat insulation effect, as wellHaruhiko Tanaka
Manager of Plant Engineering Group, Manufacturing Department

Supply Chain

Sadamitsu Miyake
General Manager of Manufacturing Department

Akihisa Kontani
Plant Engineering Group, Manufacturing Department

Junichi Takahara
Plant Engineering Group, Manufacturing Department

Sumitomo Electric Wintec, Inc.

Yukinori Hashimoto
Assistant General Manager of Safety & Environment Department

Human
Resources

Hirotake Komori
Manager of the Energy Saving Office, Safety & Environment Department

Sumitomo Electric Industries, Ltd.

CSR VOICECS

cutting-edge eco-friendliness

Toru Takada Optical Fiber Plant, Manufacturing Department, Kiyohara Sumiden, Ltd.

SocialContribution

I like manufacturing, and always look for something to improve even during a private
time outside the workplace. I have also engaged in Eco-Life Activities aggressively.
A massive effect was made by introducing photovoltaic power generation. While I
used solar power loan to purchase the system, the profit from sales of electricity
exceeded the loan payment last fiscal year, and I also paid less electricity prices.
In addition, I introduced an advanced DC motor fan and LED lights equipped withhuman presence sensors. I also laid tile carpets on wooden floors and inserted heatinsulating materials into walls by myself. These efforts resulted in reduction of CO2 emissions by 2.8 tons-CO2/year. While I also enjoy
driving, which is another hobby of mine, I will keep pursuing cutting-edge eco-friendliness.

Environmental
Preservation〈 Energy saving in households 〉I am enjoying energy saving activities to pursue

SEI CSR Report 2014

62

To Reduce CO2 Emissions from Logistics

Initiative to Promote Modal Shift

We are reducing CO2 emissions by using railroad forsmall-lot delivery and consolidation

We increased the use of railroad and coastal transportation
Sumitomo Electric is active in promoting modal shift mainly in

Per unit CO2 emissions in the Sumitomo Electric Group as a

the case of heavy and long-distance (500 km or longer)

whole (Note 1) in fiscal 2013 were reduced by about 2.7% fromfreight transportation.

the fiscal 2012 level (Note 2). Sumitomo Electric improved the

In fiscal 2013, the modal shift rate increased because

value with active use of railway containers for small-lot supply

demand from the customers to which we deliver copper wire

on an irregular basis, along with transportation ofrod and high-strength steel wire mainly by railroad andhigh-strength steel wire to a construction site in the same

coastal transportation remained strong and we aggressively

cargo with goods to be delivered to nearby construction

switched to delivery of naked copper wire by rail.

sites. In the meantime, CO 2 emissions in Sumitomo Wiring

Meanwhile, in recognition of the fact that 50.8% of our freight

Systems were reduced through more frequent use of railway

land transportation covering 500 km or morecontainers for the transport of wiring harness products forin fiscal 2011 was by rail, we acquired

automobiles to the relay point in Tokyo as well as increase incertification as a company engaged in thethe loading ratio of truck. We will continue the Group-wide

initiatives of Eco Rail Mark from the Railway

efforts to reduce CO2 emissions from transportation.

Freight Association in February 2012.
Eco Rail Mark

(Note 1) CO2 emissions from transportation in Japan were calculated.
(Note 2) Comparison with Group-wide per unit CO2 emissions in the previous ﬁscal year
Sumitomo Wiring Systems, Ltd. adopts CO2 emissions per sales amount as
the basis for the calculation while other group companies use CO2 emissions
per cargo transport (t-km). Therefore, the weighted average of each year-on-year
CO2 emission rate is calculated based on the CO2 emissions.

Modal Shift Rate of the Sumitomo Electric Group by Year
(Excluding Sumitomo Wiring Systems, Ltd.)
（％）

31.8

32.0
31.0

30.5

30.3

30.4

30.0

29.2

Per Unit CO2 emissions by Year
29.0
(tons-CO2/million ton-km)(tons-CO2/100 million yen)

110.0

5.50

105.0

5.00

101.1

100.0

99.4

98.0

99.7

98.6

0

2009

4.50

Modal shift rate (%) =

95.0

4.36

90.0

4.00

4.23

4.13

85.0

3.95

3.77

2009

2010

2011

2012

2013

(Fiscal year)

Sumitomo Electric Group (Sumitomo Electric + 37 manufacturing companies
in Japan (excluding Sumitomo Wiring Systems, Ltd.))

2012(Fiscal year)

Cargo transport by rail or ship (ton-km)
×100
Total amount of cargo transport in Japan (ton-km)

Round-trip Transportation byGroup Companies in China

Three group companies in southern China are involved in the

CO2 Emissions from the Sumitomo Electric Group(Excluding Sumitomo Wiring Systems, Ltd.) by Yearbusiness of wiring harnesses for automobiles, and receive

CO2 emissions CO2 emissions per cargo transport(tons-CO2)(tons-CO2/million ton-km)

parts from many suppliers. Those suppliers used to deliver theparts separately by trucks ranging from 1.5- to 10-ton vehicles.

2009

216.8

21,910101.1

In August 2012, under the initiative of SDL-China Co., Ltd.

2010

228.6

22,72099.4(China), a local logistics subsidiary of the SWS Group, the milk

2011

214.1

20,986

98.0

run

2012

208.0

20,734

99.7

2013

217.0

21,384

98.6(Note) system mainly using 10-ton trucks was introduced

for delivery from

Beforeimprovement

five suppliers to(Note 1) Boundaries of data collection: Sumitomo Electric + 37 manufacturing companies in Japan(excluding Sumitomo Wiring Systems, Ltd.)(Note 2) CO2 emissions are calculated on an improved ton-kilometer basis + a fuel-eﬃciency basis.

increase the loading
ratio and use larger
Factories inSouth China

CO2 Emissions from Sumitomo Wiring Systems, Ltd. by Year
Parts suppliers

Fiscalyear

Sales amount(100 million yen)

CO2 emissions CO2 emissions per sales(tons-CO2)(tons-CO2/100 million yen)

2009

3,480

15,182

4.36

2010

3,761

15,903

4.23

2011

3,815

15,759

4.13

2012

4,127

16,290

3.95

2013

4,423

16,653

3.77(Note 1) CO2 emissions are calculated on an improved ton-kilometer basis + a fuel-eﬃciency basis.
(Note 2) The sales amounts of Sumitomo Wiring Systems, Ltd. used for this calculation exclude
the adjustments made at the end of each ﬁscal year, and are therefore notnecessarily equivalent to the sales amounts published by Sumitomo Wiring Systems.

SEI CSR Report 2014

63

2013

Milk run has been introduced to procure parts ofwiring harnesses for automobiles in southern China

Sumitomo Wiring Systems, Ltd.

Fiscal Total cargo transportyear(million ton-km)

2011

3.50
0

0

2010

(Note) Boundaries of data collection: Sumitomo Electric + 37 manufacturing companies
in Japan (excluding Sumitomo Wiring Systems, Ltd.)

vehicles. The
suppliers wereselected based on
their locations andAfte
improvement

supply amount. As
a result, CO2
emissions were
Factories inSouth China

Parts suppliersr e d u c e db yapproximately 3.6
tons/month.

(Note) Milk run
In this logistics system, a truck follows a route to collect goods frommultiple suppliers. It is also called round cargo collection.

Glossary ＊Eco Rail MarkA certiﬁcation mark awarded by the Ministry of Land, Infrastructure, Transport and Tourism, Government of Japan. The use of the mark is allowed only for
products or companies that use rail transportation, which generates relatively less CO2 emissions and is therefore environmentally friendly, in accordancewith designated criteria. The mark included in packages and advertisements of products serves as a judgment standard for customers' purchase decisions.

Promotion of Resource Conservation and Recycling
Amount of Waste by Type in Fiscal 2013 (in Japan)
Waste landﬁlled or incinerated
without heat recovery
Total : 34

We are promoting resource saving and recycling

Group as a whole in fiscal 2009, and have worked todecrease the rate to 0.3% or less since fiscal 2013.

Waste oiltons/year

3
2

Waste plastics

Material recycling

4

Others

22,793 tons/year

Total amount of recycled waste: 33,066 tons/year

to recycling of the remaining waste that is difficult to recycle,
as well as the waste newly generated from new products,

6,367

Sludge5,594

Waste alkali

5,381

Waste acidAmount of waste incinerated without heat recovery+ Amount of landﬁll waste
Amount of industrial waste+ Amount of general waste

4,730

Waste plastics

3,537

Waste metal

×100

3,071

Waste paper

2,567

Waste oil

(Note) Amount of waste incinerated without heat recovery :Amount of waste generated and incinerated without heat recovery
Amount of landﬁll waste : Amount of landﬁll waste generated
Amount of waste: Amount of recycled waste generated + Amount of simple incineration
waste + Landﬁll amount + Amount of valuable materials generated
Valuable materials: Waste that used to be unsellable until 2001 but was converted into
sellable forms through internal eﬀorts after the year

Group's CSR Activities

etc., to maintain this level.

Zero emission rate (%) =40,674

4

SludgeThe zero emission rate in the entire Group in fiscal 2013 was
0.1%, which met the target.
While most of waste is recycled, we will be also committed

Amount of
waste

8
5

Business Outline

Waste paper

tons/year

tons/year

8

Waste glass and ceramics

In our efforts for the zero emission rate, we achieved thetarget of maximum 1% zero emission rate in the domestic

10,273

7,575

Waste metal《 Zero Emissions 》

Valuable materials

Heat recovery

tons/year

Wood waste

665

Waste glass and ceramics

549

Others

600

50

0.1

44.4

45.9

44.3

40
30

10.0

10.5

10.6

20

34.2

35.4

33.7

0.1

0

10
0

40.7
10.3

0.2

0.1

0.0

0.0

2011

2012

2013

Valuable materials
Zero emission rate

Recycled wastecompany although there is a landfill site in a closer location.
We will continue to encourage overseas group companies toreduce the amount of waste incinerated without heatrecovery or landfilled in cooperation with staff in the parent
divisions.

30.4

2010

companies. In US facilities, recycling can involve a cost
increase when they transport waste to a remote recycling(Fiscal year)

Incineration and landﬁll wastes

Amount of Waste and Zero Emission Rate (Overseas)
Amount of waste(thousand tons/year)

Zero emission rate (%)

16

14

13

13

54.1

55.5

(Note) Values for the past years have been adjusted retroactively to improve the accuracy.
60
50

Waste Reduction Rate (Excluding Valuable Materials) in Japan
0
9.9
34.5

35.5

33.7

30

5

20

10

10

30.4

0

20
10
0

2010

2011

0

2012
Base

Amount of waste
Reduction rate from the ﬁscal 2012 level

2013(Fiscal year)

27.6

25.4

12.3

15.5

32.6

14.6

29.6

18.7

7.6

6.5

6.9

7.2

2010

2011

2012

2013

Valuable materials
Zero emission rate

Recycled waste(Fiscal year)

Incineration and landﬁll wastes

SocialContribution

30

Reduction rate (%)
0

10

47.4

40

50
40

47.5

20

Environmental
Preservation

70

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

Human
Resources

0.1

60

1

Supply Chain2

0.5

We are committed to resource saving and recycling inoverseas group companies with the target of reducing thezero emission rate to 5% or less from fiscal 2010.
While the zero emission rate in fiscal 2013 was 12.9% andthe target was not achieved, recycling has been promoted
through such measures as sale of variable materials
converted from waste with thorough separation, along withsearch for recycling companies.
As in the cases of general waste in Southeast Asia and sludge
in China, we are facing a problem that waste cannot beprocessed around the sites due to shortage of recycling

Products &Services

Zero emission rate (%)

We will continue to promote our activities toreduce the zero emission rateCore
Category

Amount of Waste and Zero Emission Rate (in Japan)
Amount of waste(thousand tons/year)

Reduction of the Waste to Be Incinerated
Without Heat Recovery or Landfilled (Overseas)

Governance《 Reduction of the Amount of Waste 》
We make efforts to reduce the amount of waste with thetarget of reducing the absolute amount by 1% per year aspart of our activities in the Action ECO-21 (Phase Ⅴ)
Campaign from fiscal 2013. While production growth tends
to be accompanied by an increase in the amount of waste,
we achieved the reduction of 9.9% from the fiscal 2012 levelin fiscal 2013, which exceeded the target.
To reduce the amount of waste, we promote conversion of
the waste into valuable materials through separation andsearch of uses, and also focus on reduction of defects andreview of the process that caused defects in production sites,
which are fundamental activities for manufacturing, as well as
reuse of the waste generated within the company andreduction of waste volume.

Basis for Management

Efforts to Achieve Zero Emissions andReduce the Amount of Waste (in Japan)(Note) Waste from the dormitories for employees is excluded fromthe data collection for this ﬁscal year.
Accordingly, data for the previous years have been corrected retroactively.

SEI CSR Report 201464

Water Use Reduction

Water Consumption and Reduction Rate per Unit of Sales(in Japan and Overseas)

We reduced both absolute water consumption andthe volume per unit of sales

Consumption (thousand m3/year)

We have been actively committed to reducing water

16,000consumption as an action item since fiscal 2008. In fiscal

14,0002013, absolute water consumption also showed a slight
year-on-year decrease, along with reduction of the volume
per unit of sales by 16.6% from the fiscal 2012 level.
As water leakage accounts for a surprisingly high percentage

12,0008,000

0conditioners and other facilities using water in parallel withefforts to reduce energy consumption in these facilities.

11,76911,932

12,172

11,835

5,268

5,694

5,957

5,757

6,501

6,288

6,215

6,078

2010

2011

2012
Base

2013

4,000
2,000

efficiency in gas washing columns, water-cooled air

16.6

6,000

prevention of water leakage and management of water use.
addition, we are committed to improvement of water use

0
5
10
15
20

10,000of the water consumption, we are making steady efforts for
Introduction of water reuse facilities is also promoted. In

Reduction rate perunit of sales (%)

0

18,000(Fiscal year)

Consumption in Japan
Consumption in other countries
Reduction rate per unit of sales(Note) Values for the past years have been adjusted retroactively to improve the accuracy.
Water consumption is calculated as the sum of the consumption of city water,industrial water and groundwater.

Sumitomo Wiring Systems, Ltd. Received the METI Minister's Prize〈 Recognition of distinguished people in promoting 3Rs 〉
At the annual ceremony organized by the 3Rs Promotion Council to commend
distinguished people in promoting 3Rs, Sumitomo Wiring Systems, Ltd. received
the METI Minister's Prize for fiscal 2013.
Sumitomo Wiring Systems, which manufactures electrical wiring systems (wiring
harnesses) for vehicles, received the prize in recognition of the commitment of
the entire Sumitomo Wiring Systems Group to reduction, reuse and recycling(3Rs) of waste and the outstanding achievement through its continuous efforts.
The entire Sumitomo Wiring Systems Group works to reduce, reuse and recycle
waste through such initiatives as construction of the 3R Center to collect,dissolve and recycle the waste generated in the manufacturing process,introduction of equipment to recycle waste generated in the manufacturing process as raw materials on the spot andestablishment of a mechanism to introduce office machines that are no longer used to other divisions in the company forreuse. As a result of these efforts, the Group has succeeded in reducing 60% of its waste from the fiscal 2005 level.

Dissolution at 3R Center

Crush and reuse of resin scraps

Waste Segregation in Overseas Affiliates (Municipal Solid Waste in Indonesia) - PT. Sumiden Serasi Wire Products（SSWP）
PT. Sumiden Serasi Wire Products is a factory that manufactures special steel wires in Indonesia. While sludge and wasteacid had been already recycled in PT. Sumiden Serasi Wire Products , part of general waste was landﬁlled.
In ﬁscal 2011, the waste in the general waste storage included plastic bottles and paper. PT. Sumiden Serasi Wire Products
then worked for segregation of waste paper and wood andbegan to sell them. Subsequently, sale of combustible
materials was also started after search for companies that use
such waste as fuel.
While 18 tons per month of waste was sent to landﬁll in ﬁscal
2011, the amount was reduced to 6 tons per month in ﬁscal
2013 through the accumulation of such eﬀorts. The zero
emission rate also dropped to 2%, which was also attributed
to the promotion of recycling of industrial waste.

SEI CSR Report 2014

65

Before improvement

After improvement

Reduction of the Release of Harmful Chemical Substances

Chemical Substance Management System

We are working to reduce atmospheric VOC emissions
throughout the Group including overseas affiliates

We have established an original system to unify
the management of chemical substances

The Sumitomo Electric Group has been committed to
discontinuing the use of trichloroethylene and other hazardous

The Sumitomo Electric Group established a chemical

chlorinated volatile organic compounds (VOCs) designated as
substances requiring priority action in the Air Pollution Control

poisonous and deleterious substances and PRTR-designatedLaw. As a result of the commitment, the use of chlorinated
VOCs in the Group was discontinued in fiscal 2011.
The Group has also promoted activities to cut theatmospheric release of any VOC whose annual emissions

Itami and Yokohama, and our affiliates in the Works in fiscalfrom a site were 1 ton or more in Sumitomo Electric and its
affiliates in Japan or 5 tons or more in overseas affiliates (Note).

three Works also launched the operation of this system,

management system, and started the management of
substances in Sumitomo Electric's three Works in Osaka,under the PRTR Law.
In fiscal 2012, some of the domestic affiliates outside thewhich enabled the search of the companies using poisonousand deleterious substances and SDS (Safety Data Sheet)concerning all poisonous and deleterious substances used inaffiliates in Japan.

affiliates, the emissions in fiscal 2013 increased by 8.2% fromthe fiscal 2012 level to 282 tons.

We will continue our efforts to enhance the management ofchemical substances used in the Group.

(Note) The Sumitomo Electric Group (excluding the Sumitomo Wiring Systems, Ltd.)
covers the sites that are required to identify the emissions by law.

Soil and Groundwater Remediation
We are continuously conducting soil andgroundwater remediation and groundwater monitoring

The whole Group, including overseas affiliates,
is submitting reports in accordance with the applicable laws

We disclosed the pollution status of three major Works (Osaka,

Sumitomo Electric and its domestic affiliates, using thechemical substance management system developed by theCompany, measure the monthly generation rate of chemical
substances specified by the PRTR Law＊, and calculate theamount of these substances released and transferred in orderto report annually in accordance with the law. A total of 43
plants of Sumitomo Electric's Osaka and Yokohama Worksand 26 group companies submitted such reports for fiscal
2013. Sumitomo Electric Group's total release and transfer of
PRTR-designated substances in Japan were 66 tons and 119
tons, respectively.
A total of five plants of our four overseas affiliates submitted
reports to regulatory agencies in accordance with theapplicable local laws equivalent to the PRTR Law. The total
release and transfer of designated chemical substances
reported in 2013 (calendar year) were 8 tons and 16 tons,
respectively.

other domestic sites where pollution has been identified throughour surveys conducted thus far, we are continuing soil andgroundwater remediation by soil replacement, groundwater
pumping and soil gas absorption. We also conduct groundwaterpollution has not spread outside the sites.

We continue to control the facilities subject to the law
We manufacture no products using asbestos
The aluminum alloy manufacturing facility and its exhaust gas
purification facility at Sumitomo Electric Toyama Co., Ltd. are
Dioxins. We have ensured that emissions from these facilities
remain within regulated standards.

500

294
308

325
263

279
236

200

153
100

202
159
115

94

140

169
95

134
81

100

119
66

63

0

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Toluene

28.0

0.0

0.0

0.0

28.0

0.0

11.1

11.1

39.1

Phenol

6.7

0.0

0.0

0.0

6.7

0.0

12.5

12.5

19.2

Cresol

6.0

0.0

0.0

0.0

6.0

0.0

10.5

10.5

16.5

Nickel compounds

0.0

0.3

0.0

0.0

0.3

0.0

16.1

16.1

16.4

Lead

0.0

0.0

0.0

0.0

0.0

0.0

16.0

16.0

16.0

Dichlorobenzene

3.9

0.0

0.0

0.0

3.9

0.0

9.8

9.8

13.7

Xylene

4.4

0.0

0.0

0.0

4.4

0.0

5.3

5.3

9.7

1-bromopropane

5.7

0.0

0.0

0.0

5.7

0.0

0.6

0.6

6.3

2-aminoethanol

0.0

0.0

0.0

0.0

0.0

0.4

5.8

6.2

6.2

Molybdenum andits compounds

0.0

0.7

0.0

0.0

0.7

0.0

5.4

5.4

6.1

34 other substances

8.6

1.9

0.0

0.0

10.5

0.4

25.1

25.5

36.0

Transfer(Fiscal year)

Total

63.3

2.9

0.0

0.0

66.2

0.8 118.2

・The boundaries of data collection included theSumitomo Wiring Systems Group from ﬁscal 2010.
・The amounts are calculated in accordance with PRTR Release Estimation
Methods Manual, version 4.1 (2011) by the Ministry of the Environment andthe Ministry of Economy Trade and Industry of Japan.

119.0 185.2(Unit: mg-TEQ)

Chemical
substance
Dioxins

ReleaseTransfer

Into
air

Into
water

Into
soil

Into
Total
By
By
Total
landﬁll release sewage disposal transfer

0.00

0.00

0.00

0.00

0.00

0.00

1.90

1.90

Total
amountSocialContribution

Release・Revision to the law involved addition and exclusion of
the designated substances required to be reported from ﬁscal 2010.
As a result, the number of the substances increased by 108.

Total
amountInto
soil

Environmental
Preservation

286

429

Transfer

By
Total
Into
Total
By
landﬁll release sewage disposal transfer

Into
water

Human
Resources

600

Release
Into
air

679

408
350

Supply Chain

subject to the Law Concerning Special Measures against

Chemical
substance

Release and Transfer (tons)

324

Products &Services

Measures against Dioxins and AsbestosCore
Category

monitoring on a regular basis, and have confirmed that theRelease and Transfer of Chemical Substances Speciﬁed in the PRTR Law (Unit: tons)

Release and Transfer of Chemical Substances
Speciﬁed in the PRTR Law by Year

300

Itami and Yokohama) in August 2001. At those three Works andGovernanceRelease and Transfer of Chemical
Substances Specified in the PRTR Law

Group's CSR Activities

by 1% from the fiscal 2012 level and made efforts to satisfy it.
Despite the efforts, due to production growth in overseas

400

Business Outline

2011. The system is also used to collect data for reporting

In fiscal 2013, we set the target of reducing VOC emissions

700

Basis for Management

Reduction of VOC Emissions

1.90(Note) Scope of data collection: Sumitomo Electric + PRTR obligatory companies among its domestic aﬃliates

Glossary ＊ PRTR Law
Act on Conﬁrmation, etc. of Release Amounts of Speciﬁc Chemical Substances inthe Environment and Promotion of Improvements to the Management Thereof.

SEI CSR Report 201466

Expansion of Environmentally Conscious Products

Expansion of Environmentally Conscious Products

By the end of fiscal 2013, a total of 184 items have been

We are actively promoting assessment anddevelopment of environmentally conscious products

was 41%.

Along with reduction of environmental impact from ourregistered as Eco-products. The sales ratio in fiscal 2013

《 Anti-Global Warming Products 》
In this system, we register the Eco-products that especiallybusiness activities, we are striving to increase environmentallycontribute to the reduction of CO 2 emissions from society,conscious products as an initiative stated in ourand calculate and disclose the reduction effect, in order toenvironmental policy.

contribute to the prevention of global warming.

Our products are assessed to determine their levels of social

The products contributed to the reduction of CO2 emissions

and environmental contribution, and classified into, forby a total of 59,000 tons in fiscal 2013.

example, Eco Mind products, Eco-products and anti-global
warming products based on the levels. The assessment
results are also used for development of new products.

Percentage of Eco-Products in Sales and Contribution to
the Reduction of CO2 Emissions
Percentage of Eco-products in sales (%)

《 Eco Mind Products 》

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

Contribution toemission reduction(thousand tons-CO2/year)

57

10
0

41

32
59

60
50

43

40

By the end of fiscal 2013, a total of 539 items have been30

registered as Eco Mind products.

20
10《 Eco-Products (Eco Symbol Program) 》
Among Eco Mind products, the products with particularly
outstanding environmental features are examined inaccordance with our Eco Symbol Program, which is based on
ISO14021, and those that meet the criteria are certified as
Eco-products. Through this system, we aim to promote
development of environmentally conscious products and

2012

2013

(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 P68.

strive to penetrate the market with them.

Eco- Products R

0

2011

ep ortWe have succeeded in efficiency
improvement and power saving of
the GE-PON system, which
supports optical broadband access
Hirofumi Takeichi
Deputy General Manager,
ducts Department,
North America Optical Access Products
Broad Networks Division

GE-PON system FSU620
FSU6200 (left) and
FSU7100 (right)
GE-PON system FSU710

GE-PON is a transmission technology
echnology that allows Gbps-classation at low cost by branching ahigh-speed data communication
it We
single optical fiber to allow more than one user to share it.
have developed FSU7100, a GE-PON-supporting optical line
terminal that accommodates more than four times as many
subscriber lines as our previous product FSU6200.
While the volume is only 2.5 times as large as that of theprevious product, we have successfully reduced the volume perline by 40% in
FSU7100 thanks to
its high-density
mounting capability.
The port density is(From left)

also about 1.5 times as high as thattha of similar products provided
by competitors. In addition, we havehamade it easier to maintainthe device by using replaceable m
modular optical transceivers
while the transceivers in previous products are unreplaceable.
The power consumption can also be reduced by controlling thecooling fan speed based on monitoring of the load status of thedevice.
FSU7100 was awarded a qualification by CableLabs, a US-basedorganization for cable television technical standardization in
2013. Sumitomo Electric is the only Japanese company that has
been awarded the qualification. We expect to increase theshipment of this product to US cable operators.

Sumie Tomiyama Software Development Group
Junichi Maeda Manager, Technical Marketing Group
Hirofumi Takeichi Deputy General Manager
Yusuke Kai Manager, Software Development Group
Shinya Goto Manager, Hardware Development Group
North America Optical Access Products Department, Broad Networks Division

SEI CSR Report 201467

Examples of Eco- Products

CELMET® (porous metal)

Lightweight wire harness

Sumitomo Electric Toyama Co., Ltd.

Sumitomo Wiring Systems, Ltd.
The contribution is calculated by estimating theimprovement of fuel eﬃciency of a car achieved by
reducing the weight of the wire harnesses (based on
criteria in Guidelines for Environmental Factors for
Products (second edition) of Japan Auto Parts
Industries Association).

Cemented carbide tools withlonger service life
Sumitomo Electric Hardmetal Corp.
The contribution is calculated based on resourcesaving by the extension of the service life andreduction of CO2 emissions from the production using
the Embodied Energy and Emission Intensity Data forJapan Using Input-Output Tables of National Institutefor Environmental Studies.

Activities to Conserve Biodiversity
The Action ECO-21 Campaign is linked to biodiversity via activities to conserve the ecosystem

The Sumitomo Electric Group aims to procure raw
materials and design and manufacture products in a waythat protects the ecosystem and maintains sustainable
resource use. We also seek to contribute to theenvironment preservation on a global basis by providing
high-performance products.

The Sumitomo Electric Group contributes to conservation of
biodiversity through business activities, as well as environmental
activities in the Action ECO-21 campaign, as mentioned below.
For example, our efforts to promote zero emission activities
prevent or minimize the expansion of waste landfill sites, andthereby help provide habitats for wildlife.

Beneﬁts
Copper, Iron, Crude oil, etc.

Mineral resources

Beneﬁts
Wood (paper), Water, etc.

Renewable resources

Energy resources

Wood (paper), Water, etc.

Energy resources

Energy resources

Crude oil, Natural gas, etc.

Aspects/Impacts
Air pollution
NOx, SOx, VOCs, etc.

Air pollution

Water pollution

BOD, COD, SS, etc.

Climate change

Climate change

CO2, SF6, etc.

Air pollution

Aspects/Impacts
NOx, SOx, VOCs, etc.

Water pollution

BOD, COD, SS, etc.

Crude oil, Natural gas, etc.

Aspects/Impacts
NOx, SOx, VOCs, etc.

Migration of species
CO2, etc.

Products &Services

Renewable resources

Beneﬁts
Crude oil, etc.

Core
Category

Relations with Business Activities and Response

Governance

Basic Approach

Group's CSR Activities

The contribution is calculated by multiplying theamount of CO2 emissions reduced with a hybrid car(estimated based on Automobile Fuel Eﬃciency List
(March 2014) published by the Japanese Ministry ofLand, Infrastructure, Transport and Tourism and otherdata) by the contribution rate of CELMET (estimatedby Sumitomo Electric).

Contributing to resource saving byextending the service life

Business Outline

Contributing to the improvement offuel eﬃciency of cars bytrimming the weight

Basis for Management

Contributing to the improvement offuel eﬃciency of hybrid cars aselectrodes of secondary batteries

Loss of habitats
Climate change

CO2, PFCs, etc.

Supply Chain

Migration of species

Design and production of
Sumitomo Electric Group products
Energy Saving Task Committee
Zero Emission Task Committee● Environmental audit● Action ECO-21●

Procurement of raw materials●

CSR Procurement Guidelines
SEI Guidelines forGreen Quality Purchases

Business activities of theSumitomo Electric GroupLand use(construction of factories, green area)

Recovery and recycling

Migration of species
CO2, etc.

Volunteer activities●

Cleanup of areas around factories,
commuting routes and nearby ponds

Chemical Management
Task Committee● Action ECO-21

Beneﬁts
Wood (paper), Water, etc.

Renewable resources

Crude oil, Natural gas, etc.

Energy resources

Renewable resources
Energy resources

Beneﬁts
Wood (paper), Water, etc.
Crude oil, Natural gas, etc.

Aspects/Impacts
Air pollution
NOx, SOx, VOCs, etc.

Aspects/Impacts
Air pollution
NOx, SOx, VOCs, etc.

Water pollution

BOD, COD, SS, etc.

Water pollution

BOD, COD, SS, etc.

Climate change

CO2, PFCs, etc.

Climate change

CO2, PFCs, etc.

SocialContribution

Climate change

Design and production of final products(by customers), use and services●

Chemical Management
Task Committee● Action ECO-21●

Aspects/Impacts
Loss of habitats

Green Logistics Promotion
Task Committee● Action ECO-21●

Environmental
Preservation

Works Environment Committees● Works Development Committees● SBC Greening Group※●

Transportation and sales
Human
Resources●●※ SEI Business Creates, Inc. (SBC) has this permanentorganization dedicated to greening activities in Osaka, Itami,
Yokohama Works, and in manufacturing site in Kanto and Kumatori.

SEI CSR Report 201468

Social Contribution

Basic Policies on Social Contributions
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 theoccasion of the 110th anniversary of its founding in 2007.

The Sumitomo Electric Group Basic Policies
on Social Contributions

Core Category

The Sumitomo Electric Group will proactively address voluntary social
action programs, as a member of society, focusing on respect forhuman resources, attaching importance to technology, and creating
a better society and environment in accordance with the Sumitomo
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.

SocialContribution
Priorrity Theme● Globally promote eﬀorts toward the development of human resources,

Contribution throughOur Business Locations
and Foundation

Main Targets for Fiscal 2013
Increase monetary contributions to university courses,
scholarships and grants to academic and research
activities supplied through the fundPromote cooperation with NPOs for support of
the reconstruction of the Tohoku Region andother purposes

Results in Fiscal 2013
① Monetary contributions to university courses:
94.5 million yen in total for 8 courses② Subsidies for academic and research programs:
20 million yen in total for 16 programs③ Supply of scholarships:
23.6 million yen in total for 98 persons
Held a fair of products from the Tohoku region to
support the region's reconstruction from the Great East
Japan Earthquake
Participated in the TABLE FOR TWO program

Main Targets for Fiscal 2014
Increase monetary contributions to university
courses, scholarships and grants to academic andresearch activities supplied through the fundPromote cooperation with NPOs for support of
the reconstruction of the Tohoku Region andother purposes

SEI CSR Report 201469

the promotion of research and learning and environmental
conservation.
● Promote community-oriented social contribution activities in theGroup's business locations all over the world.
● Provide

continuous support to employees' voluntary social
contributions.

Under the Basic Policies, we are committed to the social contribution
activities suitable for the Sumitomo Electric Group, which is aiming to
be a Glorious Excellent Company, with focus on the establishmentof the SEI Group CSR Foundation as a vehicle to contribute toencouragement of research and learning activities and humanresource development, as well as on promotion of activities tocontribute 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 2013, the SEI Group CSR Foundation received contributions of632.0 million yen in total from Sumitomo Electric (500 million yen
appropriated for its endowment and the remaining amount for
operation), and (1) donated 94.5 million yen in total to university
courses, (2) supplied subsidies of 20 million yen in total to academic
and research activities, and (3) provided scholarships of
approximately 23.6 million yen in total for 18 foreign students learning
in Japan and 80 local students studying at overseas universities.
In the program to make donations to university courses, we provided
monetary support for one new course along with the seven courses
continued from previous ﬁscal year.
●

Plant Bioengineering for Bioenergy Laboratory and
Implementation of a problem-solution oriented machineengineering education to develop human resources for
manufacturing practice in the next generation at Osaka University●

Solution study of plant biomass andNano-interface photonics institute at Kyoto University●

Research course on tsunami marine hazards at Kobe University●

Research on terminal care for elderly patients withchronic heart disease at Saga University (new)●Research on neuroimaging at Tohoku University●

Course on environmental laws and policies toward reconstruction
from the earthquake disaster and the nuclear power plant accident
at Hitotsubashi University

applications. Out of them, we have selected 16 research
programs including basic science research that needs
research funds and embryonic research by young
researchers, and offered subsidies to them.
For detail on the programs, see the Group CSR Foundation
page of our website.

http://www.sei-group-csr.or.jp/e/business/index.html

Donation amount(yen)

Total number(persons)

1,030,496

128

UNICEF

341,404

42

World Wide Fund for Nature (WWF)100,036

15

Great East Japan Earthquake

1,386,544

167

SEI Group CSR Foundation

774,378

94

3,632,858

446

Japanese Red Cross Society

Total

Volunteer Activities

We are making social contribution through donations
from a global perspective

We support volunteer activities by
employees with various systems

In fiscal 2013, we made donations in various areas including
schools and education, industrial and academic development,

We have introduced a volunteer holiday system since April
2007, which allows employees to take cumulative paid

R & D, art and culture, welfare, local development,
environmental conservation and sports. For example, we gave

holidays (up to 10 days in a year) for performing volunteer
activities.

Environmental
conservation
1,000,000 yen

3rd year student, Department of Japanese, School of
Foreign Languages, Sun Yat-sen University, China

2,965,000 yen

78,888,462 yen

Schools andeducation

Welfare projects
9,466,367 yen

23,162,369 yen

The SEI GroupCSR Foundation
632,000,000 yen

38,850,000 yen
Total

749,738,462 yen

924,560

600,000
400,000

809,526

749,738

527,643
308,182

200,000
0

2009

2010

2011

2012

SocialContribution

800,000

Environmental
Preservation

Amount of Donations by Year(thousand yen)

Human
Resources

Sumitomo
Sogo GroundI really feel that time flies. Looking backthe past year, I was actively involved invarious activities including the school work. Then, I won ascholarship from the Sumitomo Electric Group. I would like toexpress my gratitude. While I felt very glad, the event also
reminded me that your efforts will be rewarded.
I have studied at the Department of Japanese of the Schoolof Foreign Languages at Sun Yat-sen University, and am now
working hard to prepare for the Japanese Proficiency Test at
the N2 level. This is just a small challenge in my life, and thethought of many more challenges that are waiting for me in
the future gives me much power. While I have to make efforts
to study, of course, I must also participate in various sports
activities positively because there are fewer men than womenon the campus. Although men, who are minorities, almost
always lose the game, we must keep participating and doing
our best. I believe that your efforts will never betray you aslong as you do your very best in your school life.
The scholarship from the Sumitomo Electric Group is
supporting and encouraging me very much because I am notrich. It also gave me an opportunity to learn the Group andunderstand its corporate culture. If I am lucky enough, I hopethat I can work for the Group after graduation and contributeto the company, society and my country using my expertise.
Lastly, I would like to thank the Sumitomo Electric Groupagain for its support for my learning activities. I wish for theGroup's continued success.

Supply Chain

Industrial andacademic development,
research anddevelopment
24,436,000 yen

1,000,000

Your eﬀorts will be rewarded
Mr. Weigang Liu

Other

Local development
3,054,147 yen
Sports, arts andculture14,804,579 yen

CSR VOICE
CS

Products &ServicesAmount of Donations by Category (Sumitomo Electric alone)

We have promoted TABLE FOR TWO (TFT), a program tocontribute to society and support health management of ouremployees at our cafeterias since October 2011. A
low-calorie, well-balanced healthy menu is offered daily at
the cafeterias and 20 yen is donated from the sale of eachmeal to help provide school meals in African countries.

Core
Category

through our welfare system (cafeteria plan) to donate to theJapan Committee for UNICEF, Japanese Red Cross Society andWorld Wide Fund for Nature (WWF) Japan.
In addition to initiatives in Japan, we are developing social
contribution activities on a global scale, including monetary
donation to the victims of the typhoon that hit the Philippines in
November 2013 and the reconstruction of the affected region.

Collaboration with an NPO
We promote a program aimed at contributing tosociety and helping employees manage their health

Governancefinancial support to symphony orchestras and opera
performance as part of our efforts to assist art and culturalactivities, as well as important social activities such asenvironmental conservation by nature conservation funds andother organizations.
We are also collecting matching gifts＊ from employees

Group's CSR Activities

Social Contribution through Donations

Business Outline

Web

Results of contributions through the cafeteria plan in ﬁscal 2013

Basis for Management

We also invited applicants to the program to support
academic and research activities, and received 86

2013 (Fiscal year)

Glossary ＊Matching gift system
The company concurrently donates an amount equal tothe donation made by an employee in this system.

SEI CSR Report 201470

Contributions
to LocalCommunities

In accordance with the basic principle of Harmony with the International Community, the Sumitomo ElectricGroup, which has presence in about 40 countries around the world, aims to contribute to development oflocal economy and society while respecting the culture and customs of every region and country. To this end,
along with social contribution through business activities, we are committed to various activities to support
local communities and build harmonious relations with them.

Activities in Japan
A total of 53 companies of Sumitomo Electric and its group companies are covered.
They include Sumitomo Riko Co., Ltd., Nissin Electric Co., Ltd. and Sumitomo DensetsuCo., Ltd., which are listed in stock exchange.

Promoting community support activities andexchange with local communities● Local cleaning activities, promotion of greening, environmental conservation activities, etc.

Sumitomo Electric: Cleanup of the area around each of its business sites
Cleanup activities are performed in 34 of the 53 companies including the companies mentioned above.

● Local cleaning activities●● Supporting local disaster-prevention and safety activities●

Performed in 23 of the 53 companies including Hoshi Industries Co., Ltd.

● Opening corporate facilities (sports grounds, gyms etc.) to the public●

Performed in 4 of the 53 companies including Sumitomo Electric Fine Polymer, Inc.

● Inviting local residents and students(from elementary, junior high and high schools) to plant tours
Sumitomo Electric: Osaka Works received 135 third grade students from
Shimaya Elementary School in May.
Performed in 9 of the 53 companies including the company mentioned above.

● Plant tour●

● Opening company sites to the public to organize events

Hokkaido Sumiden Precision, Co., Ltd. and Hokkaido Electric Industries Ltd.:
Organizing Shibazakura Festival in May●

Performed in 4 of the 53 companies including the companies mentioned above.

● Publishing local community magazines

Sumitomo Electric: Osaka Works in July 2013 and January 2014,
Itami Works in May and November 2013,
Yokohama Works in May and November 2013

● Athletic practice sessions for elementary andjunior high school students

Contributing to sports and cultural activities● Contributing to sports activities

Sumitomo Electric: Sponsoring the 69th Lake Biwa Mainichi Marathon in March 2014
Itami Works: Jointly organizing athletic practice sessions for elementary schooland junior high school students in Itami City (12 sessions a year)●

Performed in 9 of the 53 companies including the company mentioned above.

● Contributing to arts and cultural activities

Sumitomo Wiring Systems, Ltd.: A team of employees inherited the traditional performing artof the historical Yokkaichi Suwa-Daiko Japanese drum andperformed at nursing homes and other places●● Donation of school supplies in the US

Performed in 4 of the 53 companies including the company mentioned above.

Supporting education and training● Offering hands-on training programs and off-campus classes to students and teachers

Sumitomo Electric: Yokohama Works accepted students from the University ofElectro-Communications for an internship program in September.
●

Performed in 21 of the 53 companies including the company mentioned above.

● Holding on-site science classes at schools

Nissin Electric Co., Ltd.: Science class using solar-powered cars forelementary school students in Kyoto City in July to October●

Performed in 4 of the 53 companies including the company mentioned above.

● Technical education activities in Thailand(received an Education Minister's award)

Activities in Other Countries● Donations of money and goods to local schools and communities

Sumitomo Electric Wiring Systems, Inc.: Donation of school supplies in the United States● Support of technical education for local students and other people

Sumitomo Electric Sintered Components (Thailand) Co., Ltd.: Technical education activities in Thailand● Employee volunteerism in local communities

TECHNO ASSOCIE Co., Ltd.: Improvement of a football ground and organization of a tournament in Mexico

SEI CSR Report 201471

● Improvement of a football ground andorganization of a tournament in Mexico

Global Social Contribution Report

Basis for Management

With Jatropha, a high-yieldcrop resistant to dry climates,
we will turn barren
areas intogreen fertile lands

Dr. Suguru Tsuchimoto, Associate Professor
Graduate School of Engineering,Osaka University

The SEI Group CSR Foundation makes donations to excellent university courses that contribute to social development.
Plant Bioengineering for Bioenergy Laboratory at Osaka University has been selected to receive its donation for three terms
since fiscal 2009 because the research can lead to social contribution on a global scale. This course is introduced below.

We focused on Jatropha, a fuel crop thatcan be grown even in dry, barren areas

can be also demonstrated under natural conditions are

Our course is aimed at research and development that can

microscope that enables us to analyze the quality andhelp prevent global warming. While there are many potential

quantity of oil contained in the seeds just by observing themGroup's CSR Activities

Professor Kiichi Fukui
Graduate School of Engineering,Osaka University

Business Outline

Jatropha is a plant that helps reduce
CO2 emissions without competingwith food production

currently underway in the University of the Philippines. In

methods to prevent global warming, we study the greening

through the device. The combination of these methodsof the earth with a focus on Jatropha. This plant can beallows us to screen drought-tole
drought-tolerant, high-yield seeds with acultivated with little care even in dry, barren areas wherelarge amount of high-quality oil.

Governanceaddition, we have succeeded in the development of SRS

other plants cannot survive. It absorbs carbon dioxide in theCore
Category

atmosphere, and the seeds can be used to produce aviationfuel and high-quality diesel oil. The plant is also excellent interms of energy balance, and does not compete with

Products &Services

production of food such as rice and vegetables. Thus,
Jatropha is an ideal plant for greening agriculture.

In consideration of the rapid desertification, as well as past
Jatropha cultivation projects that ended in failure, we

Newly developed SRS microscope
enables analysis of oil content
without breaking the seeds

For sustainable greening agriculture
autonomous greening agriculture. This means greening that

resources. In this method, we collected various Jatropha

can spread spontaneously with minimum care by local

species and selected the ones especially tolerant of dry

people and also provide appropriate areas for agriculture. To

conditions. Another method was introduction of genes that

this end, we still have issues to be examined, such as

are resistant to dry climatescompanion planting to enhance the added value. Lastly,

to create drought-tolerant

research on plants, especially trees, takes much time andrecombinants.

Aftereffort until they take roots and grow big enough, just likemaking efforts for about fiveraising children. The SEI Group CSR Foundation properly

and a half years, we finally

understands it, and is going to support our work for nine

produced species close toyears (three terms). Thanks to it, we have made specifican ideal in a green house.

achievements such as registration of new species andExperiments to confirm thatthe advantages of the plant

The Sandponics method of
Sumitomo Electric is also used for
cultivation

widespread use of them. We would like to express ourSocialContribution

Our ultimate goal is establishment of ecologically-stable

methods to achieve it was screening based on the genetic

Environmental
Preservation

worked to further improve the drought tolerance. One of the

Human
Resources

To further improve the drought tolerance
and increase the yield

Two types of drought-tolerant
recombinants were successfully
created (photo taken in Arid Land
Research Center, Tottori University)

Supply Chain

Zone where Jatropha
can be grown

The plant be cultivated invarious regions fromtropical lands experiencing
desertiﬁcation tosubtropical areas

sincere gratitude to the support.

SEI CSR Report 201472

Independent Third Party Assurance Report

SEI CSR Report 201473

Comments from an External Expert
My ﬁndings on the CSR activities and information disclosure by the Sumitomo Electric Group are as follows:
Commendable points■

Innovation andenvironmentally conscious technologies

The mid-term management plan launched in ﬁscal 2013
(VISION 2017) sets value creation through innovation as afundamental concept for the strategy. In conjunction with theconcept, development of products that have potential
marketability in the sustainable society is promoted in various
business areas as an initiative in Products & Services, one of thecore categories. These activities are underpinned by a wide
range of basic technologies that have been cultivated throughcontinuous research and development. Sumitomo Electric
proved the abundance of such intellectual properties again byreceiving Thomson Reuters Top 100 Global Innovators Awardfor the second time in 2013. Technological contribution torealizing a sustainable society is clearly indicated by the growthof the percentage of Eco-products in sales by nearly 10% overthe last two years and the resultant increases in theircontribution to reduction of CO2 emissions.
■

Enhanced commitment to supply chain management

The most commendable point in the Group's CSR management
during ﬁscal 2013 was enhanced commitment to supply chain
management. In February 2014, a questionnaire survey of 122
main suppliers was conducted to check their awareness of the
CSR Procurement Guidelines, as well as progress in theiractivities to comply with the guidelines. This is a signiﬁcantaction to verify the eﬀectiveness of CSR procurement, and thestance of the Sumitomo Electric Group to place emphasis on
promotion of CSR procurement is appreciated.
■

Development of personnel systems on a global scale

The Sumitomo Electric Group is expanding the size of business,
and keeps growing especially rapidly on a global scale. The
proportion of overseas sales on a consolidated basis rose
sharply from 48% in ﬁscal 2012 to 55% in ﬁscal 2013, and thatof overseas employees also increased to 83%. In this context,
the Group promotes the globalization of the personnel
systems, and takes various measures under the Global HRM
Policy. In particular, the introduction of the Global Glade
System, which selects executives from group employees
worldwide in a fair manner, is highly valued as a system toassess personnel beyond regions.
■emissions during transportation through the adoption of themilk run system by aﬃliates in China, promotion of eﬀorts to
reduce the zero emission rate in foreign countries and overseas
compliance training on the prevention of bribery.

Aspects needing improvement■

Expansion of the reporting boundary

A continuous challenge for CSR management in the Sumitomo
Electric Group is expansion of the reporting boundary toprovide information on a consolidated basis. As consolidated
ﬁnancial statements are indispensable for presentation of theeconomic status of a company, non-ﬁnancial data in the CSR
report have to be disclosed on a Group-wide basis to informstakeholders of the actual situation of the corporate activities.
Statistics on workers by gender, which serve as a basis forGroup-wide labor-related measures, are particularly essential
information for labor management and should be therefore
disclosed promptly. The information is also necessary forpromotion of the measures related to diversity, which is one ofthe priority CSR themes. As the ﬁrst step, discussions should bemade to set up the channels to collect the information.
■

Thorough compliance

In August 2014, the Chinese Government imposed administrative
penalties on 12 Japanese auto parts ﬁrms including Sumitomo
Electric for violation of the Anti-Monopoly Law. Actually, theactivities considered to be violation were terminated in 2009,
which was before Sumitomo Electric formulated Competition Law
Compliance Regulations in June 2010 to develop theorganizational system to address the issue of compliance.
Nevertheless, unfair trading gives great damage to society andalso has negative impact on the maintenance, survival andgrowth of the company. I suggest that Sumitomo Electric work toensure compliance by raising the awareness again.

Strengthening of CSR management overseas

In line with the globalization of the Group, CSR management
outside Japan has been enhanced gradually. The notableachievements in ﬁscal 2013 include the reduction of CO 2

Professor, Faculty of Economics,
Sophia University

Yoshinao Kozuma

Sumitomo Electric's Response to the Findings

Yoshitomo Kasui
Managing Director
and Chairperson of
the CSR Committee

We thank Professor Kozuma for providing suggestive opinions on our Group's CSR activities and information disclosure.
Professor Kozuma gave a high mark to our eﬀorts for innovation and environmentally conscious technologies.
Innovation is a core subject of our growth strategy in VISION 2017, and we will continue to promote development of
new products and new technologies to contribute to realizing a sustainable society. For enhanced commitment to
supply chain management, we will expand the scope of the questionnaire survey to cover more companies, andstrengthen monitoring to promote CSR procurement.
The expansion of our business activities enhances the importance of the Group's global management and diversity
management. We therefore consider that development of personnel systems on a global scale and strengthening of
CSR management overseas are signiﬁcant initiatives.
As to the items identiﬁed as aspects needing improvement, we will make discussions on the expansion of the reporting
boundary, and also improve our eﬀorts to ensure thorough compliance. We will develop our CSR activities, includingthese eﬀorts, so that our stakeholders enhance their understanding of our activities and attach a higher value to them.

SEI CSR Report 201474

HR & Administration Division (CSR Promotion Oﬃce)
1-3-13, Motoakasaka, Minato-ku, Tokyo, 107-8468 JAPAN

Phone: +81-3-6406-2611 Fax: +81-3-6406-2700［URL］http://global-sei.com/csr/ ［E-mail］csr@info.sei.co.jp

A（2）-060002

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forests

Printed on paper made with woodfrom forest thinning Morino
Chonai-Kai (Forest Neighborhood
Association) Supporting sound forest
management

Sumitomo Electric
supports an initiative
to preserve forests bypromoting the use ofdomestic timber

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vegetable oil ink

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fonts that are easy tounderstand and easy
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［Published November 2014］