CSR Report 2016

CSR Report 2016
FeatureEnergy Saving Activities in China

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

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

product that contributes to solving social issues is picked out
from each of the business sections, and a person in chargeof the product presents our eﬀorts to oﬀer value through thebusiness (P11 to 15).
● The feature article focuses on our commitment to CO 2

reduction through energy saving eﬀorts, and introduces theactivities of three companies in Wuxi and Suzhou, China,presenting energy saving initiatives developed in their plants
and comments from local employees (P19 to 22).
● As a topic on the CSR core category

Products & Services,
this report presents a demonstration project for a large-scalestorage battery system at Minami-Hayakita Substation, which
is jointly developed with Hokkaido Electric Power Co., Inc.,and introduces comments from the executive oﬃcer incharge of the project and the site manager (P35 to 36).

● President Matsumoto had a talk with the president of

Sumitomo Electric Wiring Systems(Europe), Ltd.（ SEWS-E）,
who is a Group Global Executive of the Sumitomo ElectricGroup, and exchanged opinions on the signiﬁcance ofdiversity as a business strategy (P47 to 48).
● CSR promotion activities individually conducted by fouraﬃliates are introduced (P77 to 78).
We have continued to make eﬀorts to facilitate understandingof the contents of this report as follows.
● The main targets and actual results in ﬁscal 2015, as well as

the targets for ﬁscal 2016, are summarized to introduce ourmajor activities in the CSR core categories (P31 to 32).
● To

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

● The acquisition of ISO 14001 certiﬁcation and a tableshowing correlation of employee support programs with
relevant laws are published on the following website:（ http://global-sei.com/csr/download/ ）April 1, 2015 through March 31, 2016 (ﬁscal 2015).
Some activities conducted in ﬁscal 2016 are also covered.

Sumitomo Electric Industries, Ltd. and its consolidated
subsidiaries (353 companies)
In this CSR Report, Sumitomo Electric, the Company or ourcompany refers to Sumitomo Electric Industries, Ltd., Group
companies or aﬃliates refers to the consolidated
subsidiaries of Sumitomo Electric, and the Sumitomo ElectricGroup or the Group refers to Sumitomo Electric and its
Group companies.
● When quantitative information is disclosed, Sumitomo RikoCompany Limited, Nissin Electric Co., Ltd. and Sumitomo
Densetsu Co., Ltd., which are listed in stock exchanges inJapan, and their consolidated companies are excluded, andSumitomo Electric alone or only the Company and limited
consolidated subsidiaries are included in some cases. The
items referenced within such a speciﬁcally limited
boundaries are indicated in the text or footnotes in the tableor graph.
● The boundaries of the data compilation for

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

● For details of the scope of data collection for environmental

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

Social Contribution (P73 to 78) 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/ ）Environmental Reporting Guidelines 2012 issued by the
Ministry of the Environment of Japan.
■ Date of Publication

November 2016
(Last CSR Report: published in November 2015; and next CSR
Report: scheduled for release in November 2017)

Responses to ﬁndings by an external expert

Eﬀorts to achieve the targets in the Action ECO-21 Campaign should be enhanced through KPI management.
〉〉We examined the adequacy and achievability of the targets based on the situation outside Japan and revised targets

for some overseas KPI items in ﬁscal 2016. The activities to meet the targets were also enhanced and the entire
company worked together to strengthen energy saving activities and reduce environmental impact throughout the
lifecycle of products. As a result, targets were achieved in a larger number of items and there was no item in which theperformance deteriorated year-on-year. We will continue to promote thorough KPI management and eﬀective
environmental conservation activities to achieve the targets in all items of the Action ECO-21 Campaign.

Activities for the elimination of occupational accidents should be ensured in a continuous manner.
〉〉In ﬁscal 2015, the total number of occupational accidents decreased from the previous ﬁscal year as a result ofcommitment to priority safety activities. In particular, the number of accidents involving absence from work declined
dramatically, which showed an outcome of our daily eﬀorts. On the other hand, falls and other types of accidents areon the increase, and we will therefore continue the priority safety activities and work to ensure that all employees
are involved in them.

01 CSR Report 2016

CONTENTS

Basic Value Standards

07

Company Proﬁle08

Mid-term Management Plan VISION 201709

Our History and Business

11

Automotive

12

Infocommunications

13

Electronics

14

Environment & Energy

15

Industrial Materials

162015 Highlights

17

Global Business Expansion

19

Group's CSR Activities

23

Corporate Governance25

Risk Management

27

Compliance29

CSR Management

30

Relationships with Stakeholders

31

Main Targets and Actual Results in Fiscal 2015 / Main Targets for Fiscal 201633

Research & Development

35

TOPICS 【Redox Flow Battery】

Minami-Hayakita Substation of Hokkaido Electric Power Co., Inc.

37

Product Quality & Product Safety
Supply Chain

Core Category

Human Resources

45

Diversity

52

Safe and Sound Workplace55

Human Resource Development

57

To Become a Company with the Highest Level of Safety

59

Environmental Management

64

Activities to Prevent Global Warming

68

Promotion of Resource Conservation and Recycling

70

Reduction of the Release of Harmful Chemical Substances

71

Expansion of Environmentally Conscious Products

72

Activities to Conserve Biodiversity

73

Social Contribution

77

Promotion of CSR Activities in Aﬃliates

79

Independent Third Party Assurance Report

80

Comments from an External Expert

Core Category

Core Category

Environmental
Preservation

Social Contribution

Social Contribution

41

Environmental
Preservation

Supply Chain

Human ResourcesCore Category

Supply Chain

Operation of one of the world's largest
storage battery systems has been started

Products & Services

Products & Services

Energy Saving Activities in China

Core
Category

Core Category

ChinaGroup's CSR Activities

Governance

CSR
EYE

GovernanceTop Message

05

Business Outline

Business Outline

03

Basis for Management

Basis for Management

CSR Report 201602

To p M e s s a g e

Making Ef forts to Become aGlorious Excellent Company
Masayoshi Matsumoto

President & CEO
Sumitomo Electric Industries, Ltd.

factors. As a result, we replaced the initial numericalPrefacetargets with higher ones, namely sales of 3,300 billion

I sincerely express my gratitude to our stakeholders fortheir continued support and understanding of theSumitomo Electric Group's business activities.
We are striving to maintain our Glorious state, which
is an unchanging value for us as a corporate person
based on the Sumitomo Spirit and the Sumitomo
Electric Group Corporate Principles, and to achieve

yen and operating income of 200 billion yen, and also
added a new target index of ROE of 8% or more, inwhich there is a growing interest among investors, tothe existing target index of ROA of 9% or more.

CSR Core Initiatives

Excellent business results. Through these efforts, we

In fiscal 2013, we specified the five CSR core categories

aim to become a Glorious Excellent Company, whichin connection with VISION 2017, namely Products &is our ideal state in the future. As a milestone on theServices, Supply Chain, Human Resources,

way to the goal, we are now committed to achieving

Environmental Preservation and Social Contribution, tothe mid-term management planbyfurther strengthen our CSR activities. Since then we

fiscal 2017. Last year, we conducted an interim review

have promoted measures for the CSR priority theme setof the plan while also considering changes in thefor each of the categories to make efforts in a more

external environment, past performance and otherfocused manner.

03 CSR Report 2016

VISION 2017

The CSR core initiatives are outlined above. Needlessis innovation. This aims to develop product lines withto say, we also have to further strengthen theunique features and future potential, which is also

corporate structure and ensure compliance so that ourconsistent with VISION 2017. To present our activities

Group can progress in a sustainable manner.

for social contribution through business operations, thiscontributes to solving social issues from each of thebusiness sections, as the previous report did, and also
introduces a demonstration test of a redox flow
large-scale storage battery system developed jointlywith Hokkaido Electric Power Co., Inc.
In the Human Resources category, promotion ofoperates business with more than 200,000 employees
in about 40 countries around the world. Further growthof our Group therefore depends on the active use ofhuman resources in our Group companies both inJapan and overseas. For more effective use of human
HRM Policy in 2011, we appointedGroup Global

Executives and developed the program in 2014, andhave worked for the practical application of the
program. Promotion of diversity is a priority initiative in
VISION 2017 not only from a CSR perspective but also
as a business strategy to enhance our competitiveness.
strategy, I had a high-level talk with one of the Global

management, represent its social duties as acorporation and form the absolute basis for its
continued existence and development. In particular, weconsider compliance with competition laws to be a toppriority issue, and since the formulation of the Rules forCompliance with Competition Laws in June 2010, we
have worked to strengthen the competition law
compliance system through the establishment of asystem to ensure that the regulations are implemented
by specialized organizations and other measures.
Under the principles of the Sumitomo Spirit, which
values doing your sincere best, not only in business but
also in every aspect of your life, placing importance on
integrity and not acting rashly or carelessly in pursuit ofeasy gains, we will continue to make every effort toensure that all corporate activities are conducted fairly
and honestly and can be trusted by society.

The priority theme in the Environmental Preservation
category is prevention of global warming. As the key

Closing Remarks

performance indicator for this theme, we have set theyears, and continuously grown through many

achieve the target. This report introduces our energy

challenges and difficulties. Keeping adherence tosaving activities in China as an example of ourcompliance and corporate ethics in mind as thecommitment to the efforts on a global scale. While also

absolute foundation, we will develop our businesstaking the expansion of our business into

activities and continue to grow with the aims ofconsideration, we will continuously promote energy

becoming a Glorious Excellent Company that wins thesaving and other measures for the conservation of thetrust of society including stakeholders and contributing

global environment based on recognition thatto the creation of a new society.

environmental preservation is one of the mostThis year, we improved the management structure

important business challenges.

based on the principles of Corporate Governance

While promotion of CSR procurement, which aims to

Code. For example, the number of outside directors

share CSR value with suppliers and ask their positive

was increased to two. We will continuously promoteresponse, is the priority theme in the Supply Chain

initiatives to further enhance the transparency of thecategory, we will continue to promote our activities inbusiness management.

the Social Contribution category with focus on

We sincerely ask for your continued understanding andpromotion of social contribution activities at businesssupport for our endeavors.

locations and contribution through the SEI Group CSRFoundation.

CSR Report 2016

Social Contribution

2012 level, and are making continuous efforts toEnvironmental
Preservation

Sumitomo Spirit that has a history of more than 400

Human Resources

The Sumitomo Electric Group has inherited theglobal operations by 5% in fiscal 2017 from the fiscal

Supply Chain

target of reducing greenhouse gas emissions from our

Products & Services

Executives.

corporate ethics comprise the backbone of itsCoreCategory

To reconfirm the significance of diversity as a businessand regulations and acting in accordance withGroup's CSR Activities

resources, following the establishment of the Global

Sumitomo Electric believes that complying with laws

Governancediversity is set as the priority theme. Our Group

ComplianceBusiness Outline

year's report selects a representative product that

Basis for Management

The priority theme in the Products & Services category04

Basic Value Standards

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

Business Principles
Article 1

Article 2

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

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

Traditional Beliefs and Principles●

Attaching Importance to Technology

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

Respect for Human Resources

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

●

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

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

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

Banji-nissei

Figure of Masatomo
Sumitomo (Monjuin)※

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

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

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

05 CSR Report 2016

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

The Sumitomo Electric Group Corporate Principles

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

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

●

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

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

●

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

●

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

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

The Sumitomo Electric Group Charter of Corporate Behavior

the Sumitomo Spirit and the Sumitomo Electric Group Corporate Principles.

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

6. Fair and Proper Business Activities●

7. Conduct as a Member of Society●

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

●

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

8. Harmony with the International Community●

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

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

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

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

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

CSR Report 2016

Social Contribution●●

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

Environmental
Preservation●

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

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

4. Contribution to Preservation of
the Global Environment

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

Human Resources

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

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

Supply Chain

2. Development of New andOriginal Businesses and Products●

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

Products & Services●

Core
Category

1. Provision of Useful and
Safe Products and Services

06Company ProﬁleSumitomo Electric Industries, Ltd.

Company Name
Established

April 1897

Incorporated

December 1920
Masayoshi Matsumoto

President
Capital Stock

99,737 million yen (as of March 31, 2016)

Head Oﬃce

4-5-33, Kitahama, Chuo-ku, Osaka, JAPANBusiness Conditions in Fiscal 2015
During fiscal 2015, although the US economy continued toUnder these circumstances, our consolidated results for fiscal

show a recovery and the European economy also improved

2015 recorded a revenue growth with net sales of 2,933.1

on the whole, uncertainty in the outlook for the global

billion yen, a year-on-year increase of 3.9%. Our operating

economy was heightened with concern about the impact ofincome also grew by 6.7% from the previous fiscal year toslower growth in emerging markets and other issues. The

143.5 billion yen despite increases in depreciation expenses

Japanese economy was also influenced by the slowdown inand research and development costs as a result of upfront

China's growth and other factors, and the economic recovery

investment, offset by the weak yen and our cost reduction

paused with sluggish growth in exports and personalefforts. Profit attributable to owners of the parent decreased

consumption.

by 24.0% year-on-year to 91.0 billion yen due to the posting

In the business environment surrounding the Sumitomoof extraordinary profits in the previous fiscal year associatedElectric Group, demand for automotive wiring harnesses andwith selling shares in Sumitomo 3M Ltd. (which changed its

vibration-proof rubber in the United States and othertrade name to 3M Japan Limited as of September 1, 2014).

overseas markets was firm. Demand for flexible printed
circuits (FPC) for mobile phones and other products also
increased.

Net Sales (Consolidated)

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

(Unit: 100 million yen)

30,0001,400

25,68825,00020,00029,331

28,228910

869

17,461

16,468768

800

10,488

9,399

380

400

5,000

11,194

11,111

11,518

11,87011,760

667

589

600
10,000

1,435

1,198

1,000

14,17015,000

1,201

1,200

21,59920,593

1,345

200
0

0

2011

Overseas

2012

2013

2014

2015

Ｉn Japan

2013

2014

2015

(Fiscal year)

Proﬁt Attributable to Owners of the Parent

Return on Equity (ROE) and Return on Assets (Note) (ROA)＊（％）(Unit: 100 million yen)

29,25830,00025,54825,0002012

Operating Income

Total Assets and Net Assets (Consolidated)

20,0002011(Fiscal year)10

27,42822,9769.1

820,721
16,46915,00011,38912,447

15,613

13,799

6.6

6.1

6

4.8

5.9

6.5

6.8
6.5

5.9

4

10,000

3.7
2

5,000
0

0

2011

Total Assets

2012

2013

2014

2015

Net Assets

2011(Fiscal year)

ROE

2012

ROA

2013

2014

2015

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

Glossary ＊ROA

07 CSR Report 2016

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

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

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

Business Outline❷ Direction we should aim forBasis for Management

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

Current business fields

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

Integrated business fields

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

Group's CSR Activities

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

New business fields

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

Core
Category
Products & Services
Supply Chain

VISON 2017 (revised in 2015)(Targets for FY2017)
Sales

Operating Income

ROA

ROE

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

Initial VISION 2017

Environmental
Preservation(Targets for FY2017)
Sales

¥

Operating Income

Human Resources¥

ROA

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

CSR Report 2016

Social Contribution

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

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

History
1897

Sumitomo Copper Rolling Works was founded.

1939

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

1900

Started production of coated wires.

1941

Opened the Itami Works.

1908

Started production of power cables.

1943

Started production of anti-vibration rubber and fuel tanks.

1909

Started trial production of telecommunication cables.

1946

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

1911

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

1948

Started marketing sintered powder metal products.

1949

Entered into the business of construction of overhead transmission lines.

1957

Delivered the ﬁrst Japan-made television broadcasting antennas.

1916

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

1961

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

1920

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

1962

1931

Started production of cemented carbide ( IGETALLOY ) tools.

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

1932

Started production of special steel wires.

1963

Started production of disc brakes.

1964

Started production of electron beam irradiation wires.

1968

Entered into the business of traﬃc control systems.

1969

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

09 CSR Report 2016

Responding to safety, amenity andenvironmental needs of future motorized society

Ratio of thebusiness unit in thenumber of employees

51.2％

75.7％

1,541,985

182,330(million yen)(persons)

Ratio of thebusiness unit
in the total sales

Ratio of thebusiness unit in thenumber of employees

10.4％

10.5％

Business Outline

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

Ratio of thebusiness unit
in the total sales

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

312,021

25,326(million yen)(persons)

Ratio of thebusiness unit
in the total sales

Ratio of thebusiness unit in thenumber of employees

21.9％

5.4％

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

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

Automotive

Environment & Energy

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

(persons)

Ratio of thebusiness unit
in the total sales

Ratio of thebusiness unit in thenumber of employees

6.1％

2.7％

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

6,628(million yen)(persons)

Ratio of thebusiness unit
in the total sales

Ratio of thebusiness unit in thenumber of employees

10.4％

5.7％

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

312,154

13,646(million yen)(persons)(Note) The sales ﬁgures include internal sales between segments, and the sum of the sales by segment accordingly diﬀers from the total sales.

Opened the Kanto Works.

1974

Started production of optical ﬁber cables.

1975

Contracted to construct a power transmission line in Iran.

1976

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

1978

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

1981

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

1982
1996

2003

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

2004

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

2006

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

2007

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

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

2008

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

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

2009

Sumitomo Electric Device Innovations, Inc. was organized.

2010

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

2014

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

1998

Developed and started marketing ecology wires and cables.

1999

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

2001

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

2002

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

CSR Report 2016

Social Contribution

Started production of compound semiconductors.

1971

Environmental
Preservation

1970

Human Resources

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

Supply Chain

184,688

Products & Services

12,935(million yen)Core
Category

659,543

Group's CSR Activities

Supporting a stable energy supply

10Automotive
We succeeded in the development of stronger
aluminum wiring harnesses that can be applied
to engine parts for the ﬁrst time in the world.
Aluminum wiring harnesses help reduce car weight, which improves fuelefficiency and thereby contributes to resource saving, energy saving andCO2 emission reduction. In 2010, the Sumitomo Electric Group started toUnder-ﬂoor pipe-shielded wiring harnesses for HEVs

sell aluminum wiring harnesses made of aluminum alloy wires, which have
similar conductivity to copper wires but are half the weight of them. Since
then, the products have been adopted by various manufacturers in Japanand other countries, and we have established a system to supply aluminum
wiring harnesses on a global scale.
In anticipation of further reduction of car weight in the future, we need todevelop aluminum wires that can also be applied to bent parts and engines,
which require heat resistance and vibration resistance as well as strength.
Since 2010, we have communicated with car manufacturers to develop
high-strength aluminum that can meet various requests. In 2015, we finallysucceeded in the development of high-strength aluminum wires that cansatisfy the demand for bending and heat

Anti-vibration rubbers

resistance, and commercialized thehigh-strength aluminum wiring harnesses as a
product created by integrating ourtechnologies.
The development is also expected tocontribute to the conservation of precious
resources because aluminum has several times
greater reserves than copper. We will strive toexpand the lineup of aluminum wire
products and further promotereplacement of copper wires, thereby

Quick charging connector for EVs

contributing to society.

Fumitoshi Imasato
Social challenges●

Response to global warming●

Depletion of rare metals

Electric Wire & Cable R&D Department,
Electric Wire & Materials R&D Division,
AutoNetworks Technologies, Ltd.

Social expectations●

Improvement of fuel eﬃciency of cars●

Measures to address depletion of
resources

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

Improvement of automobile fueleﬃciency through the reduction ofvehicle weight

11 CSR Report 2016

High-strength aluminum wiring harness
In recent years, automobiles
have been required to be
more fuel eﬃcient andApplication
examplereduce CO2 emissions, andthe creation of lightweightvehicles has been a
High-strength
signiﬁcant challenge toaluminum wire
meet the targets.
In 2010, the Sumitomo Electric Group started to market aluminum wiring
harnesses comprising of aluminum instead of copper, which had been
traditionally used, to substantially reduce the weight while maintaining thehigh reliability. In 2015, we successfully developed high-strength aluminumalloy wires, which are even stronger than copper wires and allows
aluminum wiring harnesses to be applied to components around an engine
and other parts subject to high vibration.

Infocommunications

network (1G-EPON) systems for 1G Fiber-to-the-Home (FTTH) services, which
supported communication infrastructure networks in Japan, Taiwan and Hong Kong,
we have developed a next-generation ultrafast access10G-EPON system that canbe used to provide 10G services and is also compatible with existing terminals for
1G services. The new system was employed by three of the top five cableMulticore optical ﬁber cables

Business Outline

While Sumitomo Electric, as a top vendor of 1 Gbit/s Ethernet passive optical

Basis for Management

Our ultrafast optical access system canaddress increasing communication traﬃc.

operators in North America in 2015 to win the largest share of 10G-EPON in thevery competitive North American market. In Japan as well, many cable operators,
Thus, we have started to increase our share in both Japanese and overseas markets
at the same time. I believe that our 10G-EPON system was adopted in the North
American market, which has about three time larger broadband subscribers than

Governanceincluding heart@network Co., Ltd. and Bay Communications Inc., use the system.

the Japanese market and is said to set the standards for the global communication
and broadcasting industry, especially due to (1) the high quality and reliability
based on the integrated manufacturing of the ultrafast optical devices and othermaintainability based on the connecting technology to allow service providers toachieve interoperability with existing systems.
Optical data links

I have engaged in the supply of infrastructure for the
combination of communication and broadcasting fromboth aspects of research and development as well as
market expansion and commercialization. In

Group's CSR Activities

key parts within the Group and (2) high evaluation of the operability andcooperation with customers, we have developed
high-quality video distribution services making use ofCore
Category

FTTH and internet communication mechanisms for basic
broadcasting stations such as digital terrestrial andbroadcasting satellite television stations. We will

Products & Services

also work to establish comfortable and reliablehigh-speed information communication
infrastructure that can be used for the 2020
Broadband network service devices

Tokyo Olympic and Paralympic Games alongwith future services such as 4K and 8K images
and IoT.

●

Social expectations●

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

10G-EPON system
This 10G-EPON system can be used
to provide ultrafast communication
services at the speed of 10 gigabits
per second (Gbps) in cable operatorsand other broadband service
providers. The 10G-EPON system cansplit an optical ﬁber to be shared bymultiple users that enables
high-speed communication at a low cost. Another major feature of thesystem is that it can be mixed with 1G-EPON, the system that is currently
widespread, to encourage operators to introduce the new system. The
10G-EPON system has been employed by large cable operators in North
America and deployed for commercial services for residential and businessuse. The deployment of our 10G-EPON system in cable operators in Japanis also underway.

Glossary ＊4K・8K
Images and videos with higher resolution (a larger number of pixels) than current HD TV broadcasting(2K), with 4K and 8K respectively featuring four times and 16 times as many pixels as 2K.

Social Contribution

Development of economical 10-giga
systems that can be mixed withexisting communication systems

General Manager of Broad Networks Division

Environmental
Preservation

Smooth shift to the next-generation
communication infrastructure that canmeet demand for faster andlarger-capacity data communicationand diversiﬁcation of relevant services

Hiroaki Nishimoto

Human Resources

Depletion of network resources dueto the increasing data traﬃc as aresult of widespread use ofsmartphones and tablet terminals,
use of 4K and 8K＊ images, full-scale
introduction of IoT＊, etc.

Supply Chain

Social challenges＊I oT
Abbreviation of Internet of Things
CSR Report 201612

Electronics
POREFLON TM Module is operated in morethan 240 locations around the world tosolve water-related problems,
which have direct impact on our life.
Water pollution caused by domestic and industrial wastewater is currently amajor problem all over the world. Water is an essential resource for our life.
Sumitomo Electric has developed POREFLON TM Module for water treatment
Flexible printed circuits (FPC)

system using POREFLON T M , a porous material with excellent chemical
resistance and heat resistance. We are proud that this product can help solve
water-related problems that have direct impact on our life and thereby make agreat social contribution.
POREFLON TM Module is available in two types: submerged type, which issuitable for the treatment of sewage and industrial effluent; and externalpressurized type, which is suitable for the drinking water production and thepretreatment of desalination of seawater. This product is effectively used in
more than 240 locations around the world and, for example, can be used toreuse water and establish a water circulation system in the areas that sufferwater shortage in Asia, North and South America and other regions.
While more than 10 years have passed since the

SUMITUBE

TM

release, POREFLON T M Module receives a highreputation from customers as a result of ourefforts to improve the performance such as themembrane hydrophilic property and strength. In
the future, we aim to offer a wider variety ofequipment customized to the intended use while
also considering the footprint and cost aspects sothat our original technology can be used for solution
businesses that address water problems invarious fields. We will continue tosincerely work to develop productsthat can solve water and other

SUMI-CARD TM

environmental problems worldwide.

Keiichi Ikeda
Social challenges●

Access to clean water

Manager of Membrane Engineering Group,Engineering Department,
Water Processing Division

Social expectations●

Recycling of water

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

Durable, chemical-resistant andheat-resistant ﬁlters and modules topurify dirty water

13 CSR Report 2016

POREFLONTM Module
Using polytetraﬂuoroethylene (PTFE),
which has excellent chemical
resistance, heat resistance anddurability, we have developed aporous separation membrane
making the best use of our uniqueprocessing techniques and created
POREFLONTM Module for water
treatment systems. This productfeatures various characteristics, suchas high strength and high permeability. In addition,
it can be cleaned with various chemicals, and iseasy to handle thanks to the eﬀects of hydrophilic
surface treatment. As a result, it can be used in awide variety of water treatment applications.

Environment & Energy

adopted for the motors serving as the power sources of hybrid cars
manufactured by Toyota Motor Corporation. When developing the wires, we
reviewed the materials to reduce the thickness of the film while retaining theinsulation property, and also achieved uniform film thickness by improving the
Copper wire rods

Business Outline

Flat winding magnet wires developed in the Sumitomo Electric Group were

Basis for Management

With tireless technical innovation, we will further
reduce the size of motors for hybrid vehicles toimprove fuel eﬃciency and lower the cost.

production method. This enabled the magnet coils to be wound in higher
density, which helped reduce the size of hybrid car motors and thereby realized
Sumitomo Electric received the Technology & Development Award for the firsttime in 10 years at the Toyota Global Suppliers Convention.
Since hybrid car motors make a great contribution to the environment, theGovernancehigher fuel efficiency and cost reduction. In recognition of this product,

market is likely to expand on a global scale, and we expect to see growing
demand for the flat winding coil wires developed by our Group. While I am incharge of sales, I would like to not just sell products but also contribute to theenvironmental issues for resource saving. Hybrid cars equipped with our
products have recently begun to run on streets.
I would like to continue my job with a sense ofHigh-temperature superconducting (HTS) cable

responsibility that I am playing a part in thedevelopment of environmentally friendly
products.

Group's CSR Activities

distribution of products that address recovery, recycling and otherCore
Category
Products & Services

Received the Technology & Development
Award from Toyota Motor Corporation

Air cushion for railroad vehicles●

Need to address global warming

Supply Chain

Satoshi NishidaSocial challenges

Assistant General Manager of East Japan
Sales Group, Magnet Wire Marketing &Sales Department, Magnet Wire Division

Social expectations
Improvement of fuel eﬃciency
of cars●

Reduction of CO2 emissions

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

CSR Report 2016

Social Contribution

To meet the demand for the
improvement of fuel eﬃciency andthe reduction of CO 2 emissions in
automobiles, hybrid cars are
increasingly drawing attention.
Sumitomo Electric Wintec, Inc. ismanufacturing ﬂat winding magnet
wires to be used in hybrid car motors.
These wires can be wound in a higher
density than round wires with leaving
less space to achieve a higher spacefactor. In addition, the quality ﬁlm material and uniform ﬁlm thickness allow
a hybrid car motor to have an even smaller size and higher output. We willcontinue to improve the products to contribute to the development ofenvironmentally friendly cars.

Environmental
Preservation

Development of smaller andhigher-output motors for hybrid
vehicles to improve their fueleﬃciency

Flat winding magnet wire

Human Resources●

14

Industrial Materials
We will develop cemented carbide tools,
which support various industries, with improved
performance and extension of the tool life
to reduce environmental impact.
I belong to Hardmetal Division and am in charge of the global development of
cemented carbide tools. Since the start of the production and marketing of
IGETALLOY TM , a cemented carbide alloy tool, in 1931, Sumitomo Electric has
Cutting tools

developed new materials and various coating materials to contribute to theimprovement of productivity and the reduction of processing costs in the field ofmachining. In addition to the automobile industry, the products also support
machinery, electronics, aerospace and various other industries.
There are currently two important challenges for our cemented carbide tools.
One is the expansion of their global market share. To meet the targets for VISION
2017, it is a key to increase the sales particularly in emerging markets. As an
example of the efforts for it, we started mass production of indexable inserts, oneof our main products, in India in July 2015 to increase our share in the Indian
market. The mass production enabled the reduction of delivery time and costs. As
a person in charge of the project, I worked to start local production incooperation with relevant divisions and partner companies in India.
The other challenge is the establishment and

Sintered parts

maintenance of a system to recycle tungsten, which
is a rare metal and the main material for the
cemented carbide tools. We contribute to the
reduction of environmental impact throughrecycling in addition to the extension of the tool life.
Since I joined Sumitomo Electric, I have mainly
worked to expand the share of our cemented carbide
tools in foreign markets. I am now going through animportant stage of life, which is childbirth andrearing. Making use of the experience, I
would like to enhance the potential of
cemented carbide tools with a higher

Prestressed steels

Social challenges●

Demand for enhanced productivity andreduced processing costs in machining●

Depletion of rare metal resources●

Environmental impact frommetalworking processes●

Human right issues, etc. that occur inthe context of conﬂict minerals

Social expectations
Extension of the tool life
Recycling of rare metal resources● Response to conﬂict minerals●●

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

Improvement of productivity, reductionof processing costs and reduction ofenvironmental impact through theextension of the tool life●

Establishment and maintenance ofhigh-purity and eﬃcient recycling
technology

level of enthusiasm.

Ayumi Shigenaga
International Sales Group,
Global Marketing Department,
Hardmetal Division

Cemented carbide tools
Cemented carbide tools are used for awide range of cutting processes
including cutting, shaping and drilling ofvarious metals such as steel, casting,stainless steel and aluminum. They
underpin production sites of diverse
products ranging from large items suchas car engines, aircraft bodies, bridges and power generators to small ones
such as PC and mobile phone parts and dies.
The hardness and strength of cemented carbide tools are increasing, andthe tool life is being extended. The main material is tungsten, a rare metal,
and the Sumitomo Electric Group has in place a system to internallyrecycle all of tungsten in the products sold in Japan to avoid risks related
to conﬂict minerals＊.
Our recycling technology with high eﬃciency also contributes to the
reduction of environmental impact.

Glossary ＊Issue of conﬂict minerals

15 CSR Report 2016

Armed groups that are involved in serious violations of human rights obtain funding fromtrading of tantalum, tungsten, tin, gold and their derivatives produced in the Democratic
Republic of the Congo and its neighboring countries. (Please see P43 for details.)

2015
2015 Highlights

Major events during ﬁscal 2015 are listed below.

201 6

4

Awarded the Prize for Science and Technology(Development Category) of the 2015 Commendation for
Science and Technology from the Japanese Minister of
Education, Culture, Sports, Science and Technology for
Development of cross-linked polyethylene cable forsuper high voltage long distance DC powertransmission

1

5

The VAD Method was recognized as a prestigious theInstitute of Electrical and Electronics Engineers (IEEE)
Milestone for the excellent mass production ofhigh-quality optical fiber indispensable for building
optical communication networks

6

Won contract for DC ±400 kV XLPE submarine
cable system between UK and Belgium

Our redox flow battery system, a large-scale
power storage system, received the Nikkei
Sangyo Shimbun Excellent Award at the 2015
Nikkei Superior Products and Services Award

Basis for Management

201 5

Business Outline
Governance

Received Thomson Reuters 2015 Top 100 Global
Innovators Award

Group's CSR Activities

Received the 31st Kenjiro Sakurai Memorial Prize
from the Optoelectronics Industry andTechnology Development Association for
Development and commercialization ofultralow-loss optical fibers for submarine cables

UK

Kent
of
StraitDover

Netherlands
Belgium
France Luxembourg

UK
Subsea cable 130 km
Zeebrugge

RichboroughMargateLand cable 2 km

Kent

it of

Stra

BrugesLand cable 9 km

Folkestoner

Dov

CalaisFranceBelgium

10

Achieved
d an opticall fiber
f b transmission speed of
2.15 petabits/s, which was faster than theprevious world record

12

Decided to construct a new facility for the
production of cutting tools in Fukushima

Received Reliability Report Special ExcellenceAward in the Environmental Reporting Categoryof the 19th Environmental Communication Award

Environmental
Preservation

Sumitomo Electric Printed Circuits, Inc.
Commended by the Ministry of Health, Labor andWelfare as a FY 2015 Excellent Business Facility
Employing Persons with Disabilities

Received four awards of the Global Contribution
Award, Technology & Development Award,
Superior Value Improvement Award andExcellent Value Analysis Award from Toyota
Motor Corporation

Human Resources92

Supply Chain

Oostende

Canterbury

Products & Services

Land cable
Major cityCore
Category

National boundary
Subsea cableAwarded Supplier of the Year by Fiat Chrysler
Automobiles N.V.

Social Contribution
CSR Report 201616

Global Business Expansion

The Sumitomo Electric Group is developing business activities on a
global scale, with 389 consolidated companies and over 240,000
employees around the world.
While providing superior products and services, we respect the cultures

EUROPE56

and customs of the countries and regions in which we operate. As acorporate entity we conduct business in harmony with society, so as tocontribute to the sustainable development of the economy and society.

JAPAN

EUROPE

North/South America

114

UK

7

Italy

3

Ukraine1

Asia & Oceania

Japan

7

USA

26

Argentina

1

Canada2

Netherlands

3

India

Paraguay

1

Spain

1

Indonesia

12

Brazil7

Slovakia

2

Australia

3

MexicoSerbia1

Cambodia

1

Czech Republic

1

Singapore

4

Germany

13

Thailand21

Turkey4

Philippines

11

Hungary3

Vietnam9

Tunisia3

France5

Malaysia

5

Mordova

1

Bulgaria

1

South Korea

7

Morocco4

Belgium

1

ChinaSouth Africa

2

Poland4

Hong Kong

6

Romania

2

Taiwan5

Russia4

69

9Middle East & Africa
Egypt

2

Saudi Arabia

1

History of the business development
on a global scale
Sumitomo Electric started to export electric wires, which
underlie the industry, during the era of its forerunner,
Sumitomo Electric Wire & Cable Works, which was founded
in 1911. In the postwar period, we expanded our business byexporting full turnkey projects, which covered exports ofelectric wire products and all services from design toconstruction. This leads to the establishment of foundations
for the social and economic development of developing
countries and regions all over the world.
With respect to products in the business segments as well,
we have promoted localization of the business by setting up a
number of production bases in the trend of customer demandfor overseas operation and so on. Through these activities, wehave provided technical guidance and have established an
integrated system of production and sales outside Japan.

Full turnkey projects
Since our first project in Venezuela in 1963, we haveundertaken construction works in Asia, Middle East, Africa
and South America to lay power transmission lines, which

17 CSR Report 2016

Middle East
& Africa

13

Net Sales by Region(Consolidated)

Europe and others

3,437

Asia 8,762

Total forFiscal 2015

29,331(100 million yen)Japan 11,870

America 5,262

serve as anarterythat conveys electricity throughout

society, and to build communication networks, which serve
as a nerve system that conveys information.
In particular, the order we received to construct an urban
telephone network in Nigeria in 1974 was at that time an
unprecedentedly large communication network construction
project, even by worldwide standards, to be placed with asingle company. A total of 300 Japanese staff and 2,000
locals worked together on the project for 11 and a half years
until its completion in 1988.
In the two power transmission line construction projects forwhich we received orders in Iran in 1975 and 1977, we faced
not only harsh geographical and weather conditions in theconstruction area but also unstable political circumstancessuch as revolution and war. Still, we managed to connect
major industrial bases of the country and eventuallycomplete the projects in 1987.

Basis for Management

Asia &
Oceania

North/SouthAmerica

160

Business Outline

46

JAPAN

Governance

114
389

Group's CSR Activities

Companies
Consolidated

in total

Breakdown ofcompanies consolidated(as of March 31, 2016)●

Core
Category

Consolidated subsidiaries (353)●
Equity-method aﬃliates (36)

Products & Services

Beginning with the foundation of our first overseas

bases, we are committed to job creation and humanmanufacturing base in Thailand in 1969, we have promoted

resource development while aiming to stabilize the local

the establishment of overseas bases in consideration ofoperation. We now have a total of 275 overseas affiliates

market characteristics and needs for each business segment.

with more than 240,000 employees.

Number of employees in Japan and overseas andratio of overseas employees by year

Ratio of overseas employees (%)

83.3

83.8

84.0

200,000

194,734

206,323

225,484

240,798

240,86581
80(100 million yen)

45.6

48.6
28,22820,00020,593

21,599157,235

169,175

15,0009,399

10,488

11,194

11,111

2011

2012

40

16,46817,461

11,518

11,76011,870

2013

2014

2015

14,17010,00050,0000

5,000

37,49937,14837,71538,892

38,537

2011

2012

2013

2014

2015

Overseas

Ｉn Japan0(Fiscal year)

Ratio of Overseas※Sumitomo Electric and consolidated subsidiaries

Overseas

Ｉn Japan(Fiscal year)

Social Contribution

100,000

187,769

202,328

29,331

25,688150,000

201,90650

30,00025,00060

Environmental
Preservation

250,000

82

59.5

55.2

83

80.7

Ratio of overseas sales (%)

58.3

85
84

82.0
(Persons)

Sales in Japan and overseas andratio of overseas sales by year

Human Resources

In the parts of the world in which we have established ourSupply Chain

Global development by business segment

Ratio of Overseas※Sumitomo Electric and consolidated subsidiaries

CSR Report 2016

18

CSR
EYE

Energy Saving Activities in China

Pakistan

Nepal

India

BhutanBangladesh
MyanmarAccelerating the introduction outside Japan―

Eﬀorts to reduce CO2 emissions
through energy saving
At COP21 in 2015, Paris Agreement was
adopted as an international framework toprevent global warming. Indicating the needto limit the temperature increase by the endof the 21st century to less than 1.5 degrees
Celsius, this agreement sets a target of
keeping a global temperature rise from thepre-industrial level below 2 degrees Celsius.
Prevention of global warming is a significant
theme for the Sumitomo Electric Group as
well. As an example of our efforts for theprevention on a global scale, this reportpresents the energy saving activities ofthree of our affiliates based in Wuxi andSuzhou, China.

19 CSR Report 2016

Republic of
Korea

Japan
p

Jiangsu

China

WIN-W

SPEC

Sumitomo Electric Wintec(Wuxi) Co.,Ltd.
Production item: Magnet wires for coils
Number of employees: 397

SPW

SPW

Sumiden Powder Metallurgy (Wuxi) Co., Ltd.

VietnamPhilippines

ThailandSPEC

Sumitomo Electric Photo-Electronics
Components (Suzhou), Ltd.
Production item: Optical devices and optical transceivers
Number of employees: 664

Global development ofenergy saving activities

growing overseas, especially in Asia. Since energy efficiency

the 21st century.

in such countries tends to be lower than that in Japan, it is

For the Sumitomo Electric Group, prevention of global

an urgent task to introduce ideas obtained through energy

warming is linked with energy saving activities and is also asaving activities in Japan into them. To improve the effects

significant subject that can generate businessof our efforts, we launched the energy saving diagnosis

opportunities. In the quantitative indicators specified in line

program in 2008 and, since 2009, have conducted it inwith the mid-term management plan VISION 2017, we aim

overseas establishments as well.

to reduce total greenhouse gas emissions from all of ourIn the energy saving diagnosis program, we identify ideas

domestic and overseas establishments by 5% from theon various aspects, such as change of the production

FY2012 level. We also promote energy saving activities toconditions, improvement of quality and productivity andmeet the target of reducing energy consumption per unit ofreduction of failures, under the slogan of reduction of 4%

sales in manufacturing sites by 20% from the ﬁscal 2012

with the effects of ideas for energy efficiency

level in fiscal 2017.

improvement, and visit and inspect major sites to enhancetheir energy saving activities. Each division works together

Greenhouse Gas Emissions from the Global Operations of
the Sumitomo Electric Group by Region
800

787 761700

with Manufacturing Management & Engineering Unit in theg pgp
program. Following
pages
present field reports on local
gy savingg activities
energy744 730desteadily developed
in

600

t
three
of our500

Chinese400

afaffiliates.

300

263 263 268 258

278 267 285 285

100
093 104 107 99

48 47 52 57
Europe, etc.

Environmental
Preservation

200

China

Asia

Japan

America(except China)

2012

2013

2014

2015

Human Resources(thousand tons-CO2e/year)

Supply Chain

Production activities of the Sumitomo Electric Group are

be absorbed by the global ecosystem by the second half ofProducts & Services

greenhouse gas emissions are reduced to a level that canCoreCategory

In Paris Agreement, the target is set in a way to ensure that

The slogan is reduction of 4%
with the eﬀects of ideas forenergy eﬃciency improvement

Group's CSR Activities

Energy saving activities are expanded acrossthe sea to meet the targets in VISION 2017

Governance

China

Business Outline

Production item: Sintered products
Number of employees: 755

Laos

Basis for Management

WIN-W

Energy saving diagnosis reportSocial Contribution
CSR Report 201620

Elaborate diagnostic checks andaccumulation of
meticulous energy saving measures
01

WIN-W：Sumitomo Electric Wintec(Wuxi) Co.,Ltd.

Detailed diagnosis and conference
calls support energy saving activities

bimonthly conference calls involving all of the domestic
and overseas production plants of the Group, are helpful
for our efforts. We arepleased with the company
climate that ideas on
improvement provided byproduction staff are
carefully examined by
Head Office.

02

Adoption of high-efficiency motors

SPW：Sumiden Powder Metallurgy (Wuxi) Co., Ltd.

SPW not only works to save energy inits plant but also helps local community
reduce environment impact

Wang Ya Fei
Section Manager of Machinery Section, Production Department

Having founded in Wuxi in 1994, our company
manufactures magnet wires for air conditioner compressor
motors and in-vehicle electric components along withultrafine wires for watch. As we need to use enamelingoven for the production process, electricity charges
characteristically occupy a high proportion of our costs.
We underwent energy saving diagnosis and have beencommitted to a wide range of energy saving measures in
response to the results, including using inverters, reductionof lighting devices by installing a sunroof and adoption ofhigh-efficiency motors. In 2014, we installed outside air

Liu Yun Zhou

He Wen Jing

Director, Vice General Manager andGeneral Manager of Manufacture Division

Section Leader,
Safety Environment Department

intake equipment to be used in winter at our ultrafine wire
plant to stop the use of air conditioners and lower the

Our company was established in Wuxi in 1995, andload. The enameling oven are now covered with locallymanufactures and sells sintered products used for engines

procured nano materials to improve the heat insulationand transmissions of cars, compressors of air conditioners

effect.

and other devices.

We have made such various efforts to meet the target of

We have taken energy saving measures including

reducing energy consumption by 4% year-on-year, andintroduction of LED lamps for ceiling lighting of the plant andachieved the target in the three years to fiscal 2015. We

use of waste heat from circulating water of sintering

are also considering the review of the production process

furnaces for heating water in shower rooms for employees.

itself, and will continue to

In 2014, fluorescent lamps in the magnetic flaw detection

work to surely meet theroom were replaced with LED lights, which did not only

target.

reduce power consumption but also suppressed

In particular, monthly

temperature rise in the room because LED lights emit noconference calls with Headheat. As a result, electricity use for air conditioning in the

Office and Shigaraki Worksroom was also reduced. Marking 20 years in business, ourof Sumitomo Electric

c o mp an y w il l r e n e w t h e sin t e r in g f u r n ac e s an d a i r

Wintec, Inc., as well as

conditioners. We consider that there is room for the

Introduction of inverter

21 CSR Report 2016

ChinaEnergy Saving Activities in China

CSR
EYE

raise the awareness among employees.
We are also actively committed
to the improvement of theworking environment, andrespond to requests from
employees wherever possible,
such as measurement of PM 2.5

reduction of energy use through hardware-based measures.

and installation of a floor heating

Wuxi is located near Lake Tai, and we must protect thesystem in the dining room. In recognition forbeautiful lake. In addition to reducing environmental impact

such efforts, we were commended by Jiangsu Province asof activities in our plant, we would like to be continuously

a model company with a good relationship with employees

committed to protecting the environment with a strong willin 2012 and also as a model company with a goodto help society reduce the environmental impact.

relationship with the union in 2013. Our company has thus

and carbon dioxide concentration

Governanceestablished a favorable relationship with our employees.

03 SPEC：Sumitomo Electric Photo-Electronics Components (Suzhou), Ltd.

Constant monitoring of environmental data

We will take measures to further enhance
our eﬀorts and ensure achievements

Group's CSR Activities

SPEC proactively promotes
energy saving and environment
improvement at the same time
Adjustment of the pressureof cooling water

Business Outline

Use of waste heat from sintering furnaces
for heating shower water

Introduction of LED lights
in the plant

Basis for Management

featured the conservation of the global environment toCoreCategory

VISION 2017 sets an aggressive energy saving target for
manufacturing sites, which is the reduction of energy
consumption per unit of sales by 20% from the ﬁscal 2012

Products & Services

level in fiscal 2017. To achieve the target, we havepromoted the energy saving diagnosis program in Japanand other countries and provided follow-up support incooperation with the respective mother factories of thebusiness units.
Energy saving activities aim to eliminate wasteful use of

Supply Chain

resources and energy through efficient production, which

Wang Guo Cheng

Shi Yong Gang

will result in less CO 2 emissions and an improved cost

Deputy Department Head, Production Department
and Manager of Production Section

Assistant Manager, Production
Section, Production Department

structure. In addition to efforts to directly reduce energy
consumption, energy saving activities also include all
improvement activities that result in less energy use, suchproduction yield and other quality improvement activitiesof optical parts for the Group, while also enhancing

and increase of the production speed and otherproduct development function.

productivity improvement activities, as well as

We underwent energy saving diagnosis for the first time inmaintenance activities to reduce facility deactivation. We

March 2016. While we had already taken voluntary

promote such energy saving initiatives notmeasures including introduction of LED lights andonly in Japan but also on a global scale.

installation of double windows, the diagnosis presented

With an awareness of COP21, wevery detailed data and we received specific proposals. One

recognize that it is a social responsibilityof the indications was that the pressure of the coolingfor the entire Sumitomo Electric Group to

water supplied to the plant was slightly higher than theappropriate level, and we adjusted it immediately. We also
consider that there are still other energy saving measures

aim to reduce greenhouse gas emissions
both in Japan and overseas, and theGroup will continue to makeconcerted efforts to fulfill theSocial Contribution

we have not taken yet, such as introduction of inverter

Environmental
Preservation

as reduction of failure and loss, improvement of

optical devices and transceivers as a mass production base

Human Resources

Our company, founded in Suzhou in 2007, manufactures

responsibility.

pumps, and aim to meet the target of reduction of 4%
year-on-year with the effects of ideas for energy efficiency
improvement by all means. While our company distributes
T-shirts to all employees and their family members at

Hirotake Komori
Manager of the Energy Saving Office,Safety & Environment Department

Christmas every year, the T-shirts provided in 2015
* The names of the departments and positions
are those at the time of the interviews.

CSR Report 201622

Corporate Governance
Basic Approach
Under our corporate philosophy of the Sumitomo Spirit andthe Sumitomo Electric Group Corporate Principles, our Group
maintains its unwavering basic policy of contributing tosociety through our fair business practices. While adhering tothis basic policy, in order to seek sustainable corporate
growth and to increase corporate value over the mid-to-long
term, we believe that it is critical to ensure transparency andfairness of management activities through appropriate

In addition, two outside directors are appointed to adopt anexternal perspective with the aims of further strengthening
the supervising functions of the Board of Directors andenhancing the transparency and objectiveness of theb u sin e ss man age me n t . W e al so se l e c t t h r e e o u t s i decorporate auditors with various specialized knowledge andmultifaceted views so that outside corporate auditors occupy
the majority of the Board of Corporate Auditors, which aims
to reinforce the monitoring system for the purpose of
ensuring lawful and proper management.

corporate governance, as well as to draw up and implementa growth strategy fully utilizing our management resources,
with the key word being innovation. We will be committed
to further enhancing our corporate governance in accordancewith the following basic ideas:(1) We will develop an environment in which shareholders
can exercise their rights appropriately.

The Board of Directors andthe Business Execution System
While the Board of Directors of a company with a Board of
Corporate Auditors serves functions to make decisions on
and supervise business execution, the Board of Directors of
Sumitomo Electric deliberates only important issues among(2) We will take the interests of shareholders and otherstakeholders into consideration, and will appropriately
cooperate with them.

individual subjects, such as investment items, and focuses on(3) We will disclose corporate information appropriately andensure transparency.

perform the function to decide basic matters concerning the(4) We will emphasize the board of directors functions to

Independent outside directors are also appointed in themake decisions on basic policy, including strategies, as

Board of Directors as mentioned above to ensure

well as to supervise management. We will also focus on

multifaceted and sufficient discussions in the meetings, inorganizing systems and operating the Board of Directors

which independent outside corporate auditors are also

to ensure the effectiveness of such functions. In respect ofprovided with opportunities to present their opinions actively.

executive operations, we have introduced an executive

As to supervising function of the Board of Directors, while we

officer system and a business unit system, for the purpose

respect opinions of the independent outside directors andof clarifying authority and responsibilities, and ofother independent outside officers to ensure theestablishing a flexible system to execute operations in

independence and objectiveness, we have set up the

response to changes in the business environment. From a

Nominating Advisory Committee and the Compensation

viewpoint of ensuring sound management, we commit toAdvisory Committee, which are both chaired by anstrengthening audits by corporate auditors and adopting

independent outside director and made up of a majority ofa supervisory system under which independent outside

independent outside officers, to enhance the effectiveness.

corporate auditors and full-time corporate auditors work

The committees give advice when the Board of Directors

with our internal audit department and accounting

appoints candidates for directors and corporate auditors andauditors to ensure the lawful and proper management.

makes a decision on the compensations of directors.

(5) In order to contribute to sustainable growth and increase
corporate value over the mid-to-long term, we will engage
in constructive dialogue with shareholders to areasonable extent.

the medium-term business plan, annual plans based on it andquarterly follow-ups of the plans, so that it can appropriately
direction of the Company, as well as the supervising function.

Sumitomo Electric holds monthly meetings of the Board of
Directors as well as extraordinary meetings when necessary. In
the meetings, which are chaired by the President because theposition of the chairman is vacant, the Board of Directors
deliberates and takes decisions on the matters mentioned

We have established Corporate Governance Guidelines

above, makes decisions on the basic policy of the internalsetting forth our basic ideas and policy concerning corporate

control system and supervises the development and operation

governance, which are made available on our website※. Weof the system. There are currently 13 directors in thealso implement all of the principles in the Corporate

Company, who are all male and comprised of 11 executive

Governance Code.

directors and two outside directors not involved in businessexecution. Directors (14 persons excluding an outside
director) received 846 million yen in total for fiscal 2015.

Outline of the Structure

To clarify authority and responsibility in the businessexecution system and establish a flexible system that can

Sumitomo Electric has employed the system with the board

respond to changes in the business environment, Sumitomoof corporate auditors in consideration of the contribution ofElectric adopted the Executive Officer System and thecorporate auditors and the Board of Corporate Auditors toBusiness Unit System, and has transferred authority toensuring sound business management. The Board of

execute business operations to Business Units while clarifying

Directors, the business execution system, corporate auditors

their responsibility. In addition, to establish an internal checkand the Board of Corporate Auditors are committed tofunction, our corporate regulations specify the scope of

fulfillment of their respective duties in order to achieveauthority of each of the Business Units including thesustainable growth and medium- and long-term increases in

Corporate Staff Group, responsible personnel for thethe corporate value based on the basic philosophy.

execution and appropriate business procedures.

Web

23 CSR Report 2016

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

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

business performance through audits, including on-site

As to the corporate auditors and the Board of Corporate

The department also collaborates with corporate auditors

Auditors, as mentioned above, the majority of the corporate

and accounting auditors on an as-needed basis in the audits.

auditors are independent outside corporate auditors with

The accounting audits and internal control audits to bevarious specialized knowledge and multifaceted views. These

conducted by accounting auditors are outsourced to KPMG

auditors, along with full-time corporate auditors and

AZSA LLC.

surveys, of our Group companies and other establishments.

monitoring in cooperation with the Internal Auditing
Department and accounting auditors to ensure lawful andBusiness Outline

dedicated staff to corporate auditors, are in charge of

Ensuring Appropriateness ofFinancial Reporting

proper corporate management.
Committee, chaired by the President, and an organization to

constitute the auditing system to audit the businesspromote control in the Corporate Staff Group. Under their

execution of directors. The Board of Corporate Auditors

policy, guidance and support, we promote development andestablishes audit plans and policies, in accordance withproper operation of the internal control system in each

which each corporate auditor fulfills his role, as assigned bydivision and affiliate in accordance with the Financial

the Board of Corporate Auditors. Specifically, corporate

Instruments and Exchange Act, as well as the assessment,

auditors attend important meetings including those of theaudit criteria and enforcement criteria specified by the

Board of Directors, conduct hearings with the directors,

Financial Services Agency. Thus, we are committed to further

Internal Auditing Department and other employees regarding

improving the systems to ensure appropriateness of financial

their duties, inspect important authorization documents andreporting. The Internal Auditing Department assesses thevisit major establishments to conduct audits. Corporate

effectiveness of the internal control system of the whole

auditors also receive reports from other auditors regarding

Group for each fiscal year. Based on the results of suchtheir audit status, and exchange information with theassessment, the department is required to compile anaccounting auditor when required.

internal control report to be submitted to the Financial

The section in charge of internal audits is the InternalServices Agency and obtain the approval of the Financial

Auditing Department, which surveys any problems and makes

Reporting Internal Control Committee and the Board of

proposals on improvement to ensure proper and efficient

Directors.
Core
Category

Sumitomo Electric Group's corporate governance structure

Products & Services

General Meeting of Shareholders
Appointments / dismissals

Chairman of
the Board of
Directors

President

Accounting
Audit

Corporate
Auditors

Cooperate

Aﬃliates in Japanand Overseas

R&D Unit

Aﬃliates in Japanand Overseas

Production UnitsAﬃliates in Japanand Overseas

Audit

Internal
Auditing
Department

Environmental
Preservation

Sales Units

op
er
at
e

Cooperate

Co

Accounting
Auditors

Human Resources

Management
Conference

Board ofCorporate
Auditors

Supply Chain

Audit

Group's CSR Activities

We have established the Financial Reporting Internal Control

and three outside corporate auditors including a female one,Governance

Five corporate auditors, consisting of two full-time auditors

Board ofDirectors

Basis for Management

Auditing and Supervision Systems

Cross-Sectional
Risk Management
Activity etc.

Risk Management Committee
Social Contribution

Compliance Committee
Corporate
Staﬀ Group

Corporate Environment Committee
Information Management Committee
CSR Committee

CSR Report 2016

24

Risk Management
Basic Approach

Risk Management Activities

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

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

《 Establishment of a Risk Heat Map 》●

Impact on business performance, maintenance of quality
and safety●

Social responsibility to ensure stable supply

The Sumitomo Electric Group is making efforts to establish amore efficient mechanism for risk management activities sothat it can respond to the expansion of the business fields andchanges in the external environment effectively. In fiscal 2015,
we compiled a database of the results of risk inventory andinformation on the identified risks, as well as the results ofoperational audits and other monitoring activities, and createda risk heat map, which was based on the database to visualize
the risks to each of the units and affiliates. This map enables
each of them to take measures to address the items withhigher risk levels preferentially and enhance the efficiency andeffectiveness of the risk management activities.

●

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

Initiatives for Business Continuity●

Continuous compliance with laws and corporate ethics●

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

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

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

《 Revision of Business Continuity Plans (BCPs) 》
Sumitomo Electric has developed Business Continuity Plans(BCPs) since fiscal 2007 to ensure that our importantbusinesses can be continued even in the event of an
emergency, such as an earthquake and pandemic of influenza,
and that we can swiftly resume operations when ouroperations are interrupted. We also promoted business
continuity management (BCM) for continuous improvement of
the BCPs. In addition, we review the BCPs periodically, verify
the effectiveness of the emergency response plan and takeinventory of supply chain risks every fiscal year.
In line with the growing importance of overseas bases, westarted to promote development of BCPs in each of theoverseas subsidiaries as well in fiscal 2014.
Moreover, to further enhance the effectiveness of BCPs, weorganize a table top exercise in which interested persons fromrelevant divisions gather to check the BCPs of specific units andaffiliates. This exercise is conducted twice a year to reinforce
our business continuity capabilities.

《 Continuous Implementation of Group-wide Joint Emergency Drills 》
Risk Management System
Board of Directors

Company-wide
Committees

Management Conference

Compliance Committee

Risk Management Committee

CSR Committee

Risk Management Steering Committee
Risk Management Oﬃce

Public Relations
Committee
Environment Committee

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

Business Units, Sales Units,
Research & Development Unit

Divisions
Risk manager

25 CSR Report 2016

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

《 Cooperation with Local Communities 》
Risk manager

Aﬃliates
Risk manager

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

15

126

Tasks on how to classify
goods and technologies

Export control
sections

26

548

Export control practiceGeneralemployees

19550

Outline of export control
and internal rules

Domestic
aﬃliates

3

71

Outline of export control

107

Outline of export control
and issues to be noted inforeign countries

Overseasaﬃliates

6Intellectual Property Protection

Social Contribution

CSR Report 2016

Environmental
Preservation

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

Human Resources

Out of concern over the leakage of important technicalinformation, a task team was formed in the Corporate Staff
Group in April 2015. The team surveyed the actual situation of
the management of technical information in pilot divisions inJapan and overseas, and identified problems. We will promotefurther strengthening of the management system in the future.

Main content

Staﬀ in chargeof classiﬁcation

Supply Chain《 Prevention of Leakage of Important Technical Information 》

No. ofNo. ofsessions participants

Products & Services

We have launched the activities of the ICT Management
Committee, which had already been operated in China andThailand, in Indonesia and Malaysia as well to play a pivotal
role in our global development. A total of 45 companies inthese four countries are now working with us to enhance theirinformation security measures, and have made suchachievements as the reduction of the risk of infection withcomputer viruses and the implementation of information
security training.
We also take measures to prevent the leakage of information
on trade secrets and other important management assets. In
addition to existing measures such as installation of antivirus
software and intrusion prevention systems (IPS) and dataencryption in mobile computers and USB devices, we haveintroduced a plugin to prevent wrong transmission of emails
and a function to automatically encrypt files attached to emails
across the Group worldwide including our Japanese andoverseas affiliates.
Furthermore, to promptly identify and respond to any incidents
relating to information security in our Group companies, we are
now working for the establishment of Computer Security
Incident Response Team (CSIRT), which is scheduled in thesecond half of fiscal 2016, under the initiative of R&D units andIT units.

Target of
the training

Core
Category《 Strengthening of Information Security Measures 》

Record of Various Training Sessions in Fiscal 2015

Group's CSR Activities

Sumitomo Electric established its Personal Information
Protection Policy and Personal Information Protection Rules in
April 2005. In accordance with them, we properly deal with thepersonal information of customers, business partners andemployees handled in the course of our business while
complying with laws, regulations and other rules relating to theprotection of personal information. We also formulated therules for handling specified personal information in November
2015 to ensure that specific personal information is handledproperly in accordance with the law and to prevent leakage
and other problems. In addition, we revised the personal
information protection policy in February 2016 to specify the
purposes of using personal information and the possibility ofjoint use with affiliates and to promote appropriate andefficient use of personal information.

Governance《 Protection of Personal Information 》

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.

Business Outline

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.

Security Trade Control

Basis for Management

Protection of Personal Information,and Information Security

26

Compliance
Efforts to Pursue Fair Business
Activities Worthy of Society's Trust
Sumitomo Electric believes that complying with laws andregulations and acting in accordance with corporate ethics
comprise the backbone of its management, represent its
social duties as a corporation and form the absolute basis for
its continued existence and development.
In particular, we consider compliance with competition laws

employees and newly promoted personnel are also provided
with training seminars. While the regular training seminars for
managers were previously held at the end of each fiscal year,
they are now organized from April to June to avoid theyear-end period. The subjects of the seminars include
prevention of illicit acts, compliance with competition laws,
prevention of bribery and information management, and we
also disseminate the Speak-Up System as mentioned below.
TargetPeriodto be a top priority issue, and since the formulation of theOﬃcers (including executive oﬃcers)

Rules for Compliance with Competition Laws in June 2010,

Newly promoted personnel

Feb. - Mar. 2016

we have worked to strengthen the competition law

New employees of Sumitomo Electric

Apr. & Oct. 2015

compliance system through the establishment of a system toManagers of Sumitomo Electric andits subsidiaries in Japan

Apr. - Jun. 2015

ensure that the regulations are implemented by specialized

Dec. 2015

organizations and other measures.
Under the principles of the Sumitomo Spirit, which values
doing your sincere best not only in business but also every

Speak-Up Systemaspect of your life, placing importance on integrity and not
acting rashly or carelessly in pursuit of easy gains, we will

Sumitomo Electric established the Speak-Up System as acontinue to make all efforts to ensure that all corporate

system to identify any compliance-related issues at an early

activities are conducted fairly and honestly and can bestage and resolve them by ourselves in a prompt and proper

trusted by society.

manner. Specifically, we set up contacts for reporting andconsultation by employees, business partners and otherCompliance Committee
The Sumitomo Electric Group has established theCompliance Committee, chaired by the President, as anorganization that promotes measures necessary to develop
and further strengthen the compliance system. The
Committee engages in various activities, including preparing
and distributing the Compliance Code of Conduct andorganizing compliance training seminars. In addition, theCommittee identifies and analyzes Group-wide compliancerisks, disseminates preventive measures and monitors thecompliance activities implemented by each division andsubsidiary. In fiscal 2015, the Committee held four meetingsparties not only in the Company but also outside it byappointing a law firm and a specialized call center firm, andthe issues reported through this system are addressed withimmediate investigation to take necessary action. Sumitomo
Electric has also instructed Group companies in Japan andoverseas to establish their own in-house consultation
contacts, while developing domestic and overseas external
contacts at the same time so that they can be used by Group
companies, to develop and operate the Speak-Up System ona global scale. We introduce the outline of the system at thetime of various internal training sessions and also work todisseminate it through monthly in-house magazines and theSumitomo Electric Group Compliance Code of Conduct.

(June, September and November 2015, and March 2016).

Compliance Code of Conduct
The Compliance Committee has prepared the Sumitomo
Electric Group Compliance Code of Conduct, which explain
specific instructions to be followed by employees in their
daily work and other situations so that they can act in asocially acceptable way from legal and ethical perspectives.
The Code is also based on the Sumitomo Spirit, theSumitomo Electric Group Corporate Principles and theSumitomo Electric Group Charter of Corporate Behavior.
While the Compliance Manual used to be distributed to theemployees of Sumitomo Electric and its subsidiaries in Japan,
we revised the overall content of the manual in fiscal 2016 toensure that the content is suitable for distribution to theemployees of our overseas subsidiaries as well, and alsochanged the title to Code of Conduct.

Compliance Education
To check compliance risks, ensure implementation of
preventive measures and develop and enhance awareness ofcompliance, the Compliance Committee organizes regulartraining seminars for all officers and managers every year. New

27 CSR Report 2016

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

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

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

Supply Chain

Our staff visited our main overseas offices and organized

Products & Services

To develop a Group-wide compliance system on a global

Core
Category

Developing the Compliance Systemamong Overseas Group Companies

Group's CSR Activities

Sumitomo Electric introduced an anti-bribery program in
April 2013 to enhance its anti-bribery compliance systemon a global scale. This program has established rules onbribery-related issues, including ban of bribery, as well as ex
ante approval and ex post report on gifts, donations andoffering entertainment, in the Bribery Prevention
Compliance Policy in response to the recent tightening of
regulations on bribery of domestic and foreign public
officers in the US, Europe and emerging markets. One
bribery prevention officer and one bribery prevention
manager are appointed in each unit to build a system toapply the rules. The anti-bribery program, which has been
conducted for more than three years, is operated smoothly
under the initiative of the bribery prevention manager at
each division. Almost all of our subsidiaries in Japan andoverseas have introduced the program to operate it. As thelegal system, standards, customs, etc. are diﬀerent between
countries, we act in a careful manner in other countries
even more than in Japan. We provided special training,
including lectures by local attorneys, for the bribery
prevention managers in the respective countries from 2014
to the beginning of 2015, and also organized internal
training sessions by bribery prevention managers inoverseas companies from October 2010 to March this year.
We will continue to work to maintain and enhance theglobal bribery prevention and compliance system throughcontinuous education, review of the operation manual andcollection and dissemination of relevant information.

Governance(from January 2010 to June 2011), with the aims ofdeepening the awareness of compliance and creating a senseof unity as a member of the Sumitomo Electric Group. We
also send the CD recording of the lectures, along with thetraining materials used in the previous training programs, tooverseas affiliates, which include the companies that we

While the Compliance Manual we previously introduced
also identified competition laws as a priority matter to beobserved, we established new Rules for Compliance with
Competition Laws (sales-related) for employees that also
take account of foreign competition laws and clearly specify
prohibited conducts and matters to be observed in October2010 as action guidelines specialized for compliance withcompetition laws. All employees involved in sales received
training regarding these guidelines in the sessions organizedin October to November of the same year, as well as in thecompliance special training seminars held in fiscal 2013.
We will continue to make efforts to ensure compliance withthe guidelines.

reason, so that such affiliates can arrange compliance training

could not visit due to the schedule or for a geographicalprograms in a voluntary and continuous manner.
In addition, competition law basic course seminars wereorganized from October 2011 to September 2012. Since
January 2014, we have also provided training sessions foroverseas bribery prevention managers, and organized internal

Environmental
Preservation

４. Establishing action guidelines forcompetition law compliance

Human Resources

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

Anti-bribery Measures ■Business Outline

３. Enhancing and continuing compliancelaw training■

Basis for Management

Sales Compliance Office in Sales Units as organizations
dedicated to promoting compliance with competition laws.
The Company also appointed a competition law
compliance manager and a person in charge of promoting
the compliance at each of other units. In addition, weestablished the Automotive Compliance Office in the
Automotive Business Unit in March 2011.
Under the Compliance Committee, the Competition Law
Compliance Office closely cooperates with the dedicatedorganization or person in charge of each of the units
involved in actual business activities. By introducing therules to restrict contact with competitors based on theRules for Compliance with Competition Laws and promoting
related activities such as monitoring and auditing ofcompliance with competition laws and the Rules forCompliance with Competition Laws, we will develop an
effective system involving the front-line players to prevent
recurrence of violations.
Established in the respective business units subject to thescrutiny of competition authorities, the Sales Compliance
Office and the Automotive Compliance Office promotethorough measures on the front line, such as conducting
periodical hearings on compliance with competition laws
and monitoring of orders.

training sessions provided by these managers, as part of thecompliance training is also provided through the e-learning
system worldwide.
We will continuously endeavor to further improve thecompliance system of each overseas affiliate throughcooperation with the relevant divisions.

CSR Report 2016

Social Contribution

anti-bribery measures mentioned above. The competition law

28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,

Basiccomponentsof CSR

serving as the basic value standards that guideus, we will contribute to a better society andSocial contribution throughbusiness operations

Five CSR core
categories

environment through business operations inline 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 growth

Basic value
standards

with the aim of becoming a Glorious Excellent
Company, i.e., realizing the ideal state of theSumitomo Electric Group, so as to fulfill our
corporate social responsibility.

Contribution to
the establishment ofa sustainable society

From FY2013

Five CSR core
categories

Priority themes for achievement of

CSR priority themes the targets for VISION 2017

Products & services
Supply chain

Solutions tosocialchallenges

Innovation
Promotion of CSR procurement

Human resources

Promotion ofdiversity

Environmental
preservation

Prevention of
global warming

Social contribution

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

Achievement of
VISION 2017targets

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

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

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.

Society (stakeholders)External disclosureManagement Conference: Deciding CSR basic policy

Public hearing function

Report on objectives and results

Instructions and guidance

Department in charge

Category

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

Information
disclosure

RiskManagement
Oﬃce

Public Relations
Dept.

Information
Systems Div.

IR Oﬃce,
Accounting Div.

Legal Dept.

Promotion and education ofbusiness philosophy and visions

Five core categories
Products & Services

Supply Chain

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

Public hearing function

Employees

Human Resources

Environmental
Preservation

SocialContribution

Human Resources Div.
Human Resources
Development Dept.
Procurement
Div.

Plant & Production
Systems Engineering Div.
Safety &Environment Dept.

Target and achievement report

Safety &Environment Dept.
Logistics
Management Dept.

Administration
Div.

Support and guidance

Sumitomo Electric Group companies

Glossary ＊KPIKey Performance Indicators

29 CSR Report 2016

Relationships with Stakeholders
Main means of communications

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

●

●

●

●

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

●

GlobalEnvironment●

Customers

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

The Sumitomo Electric Group conducts
business activities through 390 companies
located in approx. 40 countries all over theworld (as of March 31, 2016).

●●

Employees

The Sumitomo Electric Group has approx.
241,000 employees consisting of approx.
39,000 employees in Japan and approx.
202,000 employees in other countries.
Around 80% of the Group employees thus
work outside Japan (as of March 31, 2016).

Shareholders
andInvestors

The total number of our shareholders is approx. 55,000,
and the number of shares issued and outstanding isabout 800 million. By type of shareholders, ﬁnancial
institutions and foreign holders own 40.43% and 41.36%of the shares respectively, followed by Japaneseindividuals and others (11.49%) (as of March 31, 2016).

CentralandLocal Governments

The Partners' Meeting held in ﬁscal 2015
gathered 130 of our main suppliers.

●

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

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

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

●

●

●

●

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

●

●

●

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●

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●

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●●

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

●

●

●

●
●

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

●

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

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

Communication with
Shareholders and Investors

Environmental
Preservation

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

100

80

90
71

85
51

50

45
14

0

2014

2015

Press release

2014

2015

Interview

2014
2015
President's
blog

7

2014
2015
Blog
Smile Relay(Fiscalyear)

CSR Report 2016

Social Contribution

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

Human Resources

Sumitomo Electric continued its commitment to active
dissemination of information on a wide range of activities of theGroup through various media such as press releases, interviews,
newsletter SEI WORLD and websites in fiscal 2015 to help our
stakeholders improve understanding of the Group.
In January 2015, in an effort to enhance awareness of our brand,
we launched a visual identity (VI) project, which aims to giveconsistency to designs, logos, colors and fonts used for company
communications throughout the Sumitomo Electric Group andestablish a common impression and world-view. Since the launch,
we have made continuous efforts to disseminate the VI concept
by applying it to various publications and promotion materials.
"President & CEO Masayoshi Matsumoto's Blog" marked its ninth
anniversary, and 45 entries were posted on the blog during fiscal
2015. This blog thus serves as an effective tool to promote
communication with stakeholders.
Sumitomo Electric has actively promoted the disclosure of
information in English for many years. Specifically, when we send
the convocation notice to our shareholders, we also prepare thenotice in a narrow sense and reference documents in English as
one of our initiatives to enhance information disclosure tooverseas stakeholders. While these documents have beentranslated since before, we additionally created the English
translation of the business report for the first time this fiscal year.
We will continue to make efforts to expand the range of
information disclosure.

Supply Chain

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

Products & Services

Efforts to Disseminate Information
Core
Category

Disclosure of Corporate Information

Group's CSR Activities

Suppliers●

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

Governance

Local Communities
andNPOs/NGOs

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

Business Outline

Sumitomo Electric Group

Main responsibilities of the Sumitomo Electric Group

Basis for Management

Outline of the stakeholder

30

Main Targets and Actual Results in Fiscal 2015 /Main Targets for Fiscal 2016
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 2015 and targets for fiscal 2016 on the main initiatives in core categories. To meet the targets, we willcontinue to promote the initiatives based on the PDCA (plan-do-check-act) cycle.
Core
Category

Main Targets for Fiscal 2015

Products & services

Reduce complaints by 26% fromthe previous ﬁscal year

Results in Fiscal 2015
Increased complaints by 10% from theprevious ﬁscal year (Change in the indicator:
29 in FY2014 → 32 in FY2015)●

In Japan① Stimulation of the activities in thethree activity areas② Stimulation of the activities throughvisit of the divisions involved in theactivities and continuous exchange
meetings③ Stimulation of the activities of thepractitioners●

Overseas① Development of quality control
training for managers in global bases

Continue to make requests basedon the CSR Procurement Guidelines
to individual suppliers and expand
the initiative.

Supply chain

Main Targets for Fiscal 2016▼

39

Reduce complaints by 24% from theprevious ﬁscal year
Continue to promote own process quality
assurance activities (seventh year)●

Promote the expansion of suppliermonitoring●

Continue to implement thetraining program that supports
compliance●

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

Implement the Global HRM Policy① Promotion of the talentmanagement cycle② Setting of personnel rules to becommonly applied on a global scale●

Human resources

Page

Continue to promote Own Process Quality
Assurance activities (sixth year)●

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

Develop the SWiTCH 17 Campaign(second year)●●① Completion of the development of
the mechanism for Design and/or
process change control② Company-wide development of the
3 points control of quality△

37

In Japan: Group Procurement
Collaboration Oﬃce in the Procurement
Division conducted a CSR procurement
questionnaire survey targeting main
suppliers of 17 divisions and aﬃliates●

Overseas: Selected 39 representative
suppliers of 5 International Procurement
Oﬃces (IPOs) (2 in China, 2 in ASEAN and 1 in
the US) and conducted a CSR procurement
questionnaire survey on a trial basis●

Compliance training: Provided to 2,730
persons including employees of aﬃliates
in the Group (the number increased by
7% from the previous year)●

Basic rules for procurement: On-site
inspection was conducted in 8 aﬃliates ineastern area of China, and activities todisseminate the guidelines were also
developed in other IPOs●

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

Prepared HR guidelines in cooperation
with HR managers of major overseas
subsidiaries, which are scheduled to bereleased serially from ﬁscal 2016●

No cross-border trainee was dispatchedfrom the HR Division in ﬁscal 2015●

The HR Division accepted 1 person
temporarily transferred from an aﬃliate in
China in April 2016●

Deployed an HR expatriate in Germany in
May 2015●

Whole Group
Introduced the eﬀorts of the workplaces
on in-house magazines③ Stimulation of theme-based activities
and expansion of the scope④ Introduction of good practices
through booklets and exchange
meetings

Overseas① Held 2 Quality Management Committee
meetings in China, organized training for
managers on a trial basis●

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

In Japan① Performed theme-based activities (122themes) at each division for each of
the three activity areas② Conducted follow-up inspection, organized 2
exchange meetings, issued 2 types ofbooklets introducing good practices③ Provided QR-T to 36 persons, conductedfollow-up of theme-based activities⑤ Development of education in China,
ASEAN and North America

○

○

△

42
43

44

45

Continue to make requests basedon the CSR Procurement Guidelines
to individual suppliers and expand
the initiative
Promote the expansion of suppliermonitoring●

Continue to implement thetraining program that supports
compliance●

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

Implement the Global HRM Policy① Promotion of the talentmanagement cycle anddevelopment of role models② Setting of personnel rules to becommonly applied on a global scale●

Develop global activities of the HR
Division① Dispatch of trainees from the HR
Division② Acceptance of local employees ofoverseas Group companies as line
managers of the HR Division③ Dispatch of HR expatriates to Vietnam

46

Develop the SWiTCH 17 Campaign(third year)●

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

Mental healthcare measures aspart of healthcare measures basedon the Health Management
Declaration (use of a stress level
test)

●

Discussion of action guidelines forﬁscal 2018 and thereafter

Visualized the situation on overtime andholidays taken by employees
Discussed related initiatives at SWiTCH
17 project manager meetings
Conducted interviews as a joint initiativeof labor and management to reduce total
working hours●

Company-wide measures
Set and disseminated company-widetargets for the review of working styles○

52

Encouraged employees to take paid
holidays in a planned manner (Positive-oﬀ
holidays: 1 → 3 days)
Sent emails to encourage employees totake holidays

31 CSR Report 2016

Evalu
ation

Evaluation

Results in Fiscal 2015

Eliminate serious accidents andaccidents resulting in lost work time,and reduce the total number of no lostwork time accidents and accidents
causing minor injury to 20 or lessEliminate serious accidents and accidents
resulting in lost work time: 8, no lost work
time accidents + accidents causing minor
injury: 34

△

Page

Main Targets for Fiscal 2016

58

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

Implement priority items for ﬁscal 2015
Promote the establishment of theemphasized safety activities

Identiﬁed a total of 1,004 problems in
the inspection② Safety! Power OFF Activity

Measures to deal with 862, or 86%, ofthem have been completed(as of April 15, 2016)③ Activities for ensuring safety inmulti-worker operations④ Prevent recurrence of similar
accidents●

Promote an upward spiral of theactivities① Global safety evaluation

Develop activities at the operationsites designated for safety
management and activities subject topriority management in thedepartments where injury occurred
frequently●

Conducted activities at the operationsites designated for safety management＊ at 5 bases, and conducted activities
subject to priority management at 4
bases

① Activities to prevent serious
accidents② Safety! Power OFF Activity③ Activities for ensuring safety inmulti-worker operations○

58

Achieve the targets in all items in△

60 the Action ECO-21 (Phase Ⅵ)
campaign
Conduct environmental audits

In Japan: Promoted the second series oflegal compliance audits, andconducted the examination offacilities in terms of water
quality at 8 bases

In Japan: Promote the second
series of legal
compliance audits△

Overseas: Conducted a legal compliance
audit at 6 bases, andconducted the examination offacilities in terms of water
quality at 1 base

Increase monetary contributions touniversity courses, scholarships andgrants to academic and research
activities supplied through the SEIGroup CSR Foundation① Monetary contributions to university
courses: 112 million yen in total for 10
courses

Provided position-based environmental
education 43 times for 710 persons in total

Overseas: Complete the ﬁrst seriesof legal compliance
audits61

Continue the practical training
introduced in ﬁscal 2014, in which
simulated diagnosis is conductedusing the actual products based onhiyari or near-miss reports andissues indicated in past audits○

Provided sectoral education for 62
persons in total② Subsidies for academic and research
programs: 20.9 million yen in total for
21 programs○

73

Increase monetary contributions touniversity courses, grants toacademic and research activities
and scholarships supplied throughthe fund (a total of 166 million yen)

③ Supply of scholarships: 32.2 million yen
in total for 135 persons

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

Participated in the TABLE FOR TWO
program and donated 20 yen from thesale of each low-calorie meal

74

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

Social Contribution

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

Environmental
Preservation

Provided professional education on laws andregulations 4 times for 361 persons in total

62

Human Resources

Continue the practical training
introduced in ﬁscal 2014, in which
simulated diagnosis is conductedusing the actual products based onhiyari or near-miss reports andpast audits

61

Supply Chain

Overseas: Conduct audits at 8 Group
companies in the Americas. Start
the examination of facilities interms of water quality with sites
in China including those thathave undergone legal
compliance audits

Methods for implementation② Identiﬁcation of daily changes
and problems through the 1-2-3
activities＊

Conduct environmental audits
In Japan: Promote the second series oflegal compliance audits, andcontinue the examination offacilities in terms of water
quality●① Stimulation of bottom-up
activities with a top-down
approach《Points》① Identiﬁed problems and diﬃcult
operations from the perspective ofﬁeld staﬀ② Made improvement under the initiativeof the top managers and supervisors(safe equipment and operations)

Out of the 14 items, Performanceachieved the targets（◎ or ○）: 12 items,
Performance improved（△）: 2 items④ Prevent recurrence of similar
accidents

57

Products & Services

Environmental preservation

Implemented global safety evaluation at
26 bases in Japan and overseas

Promote the establishment ofimportant safety activities

Core
Category

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

Group's CSR Activities●

Activities to prevent serious accidents in
118 bases in Japan and overseas① Activities to prevent serious
accidents② Dissemination and application of
the safety global standards

Social contribution

Implement priority items for ﬁscal 2016●

Governance

Human resources●

Business Outline

Main Targets for Fiscal 2015

Basis for Management

Core
Category

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

Glossary ＊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.

＊1-2-3 activities
Activities of leaders in the divisions as well as managers andsupervisors to inspect sites twice (2) in one (1) day to make overthree (3) indications or warning calls to identify problems

CSR Report 201632

〈 CSR Core Category 〉

Products & Services〈 CSR Priority Theme 〉〈CSR

Innovation

Our social contribution begins with the development of
products and services that meet new social needs.
The Sumitomo Electric Group considers innovation,
which is to create products with original features andfuture potential, as a priority theme. Using a wide range oftechnologies and products owned by the Group, we arepromoting R&D activities that can contribute to thecreation of a sustainable society.

◉ Expand into integrated business ﬁeldsContribution to the establishment of asustainable society with a new style of electric
power and energy◉ Enter the life-science business ﬁeld
◉ Enter the resources business ﬁeld

We succeeded in the development and commercialization of
nano-polycrystalline diamond, a dream material with potential todramatically change manufacturing
Katsuko Harano Manager of Inorganic Materials Department, Advanced Materials Laboratory
Diamond is considered to be the hardest material and widely used in cutting tools. However, it
has a weakness that it can easily crack in a speciﬁc orientation. Sintered diamond, which is amaterial for tools, also has a weakness that the existence of metal binders in it lowers its strength.
In 2014, we succeeded in the development and mass production of innovative diamond that
overcame these weaknesses, nano-polycrystalline diamond (product name: SUMIDIA T M
BINDERLESS), for the ﬁrst time in the world. This product is expected to dramatically change the
manufacturing site in the future by, for example, enabling the operation on hard materials such as
cemented carbide handled with two processes of grinding and polishing to be completed onlywith a cutting process. In recognition of this technology, we received the 55th Best 10 New
Products Awards from The Nikkan Kogyo Shimbun and the 60th Okochi Memorial Technology
Prize. Diamond is a very useful material with various features in addition to hardness. We willcontinue to pursue its potential, aiming to develop products that can contribute to society.

Research & Development
We received the Okochi Memorial Technology Prize at the 60th Okochi Prize Ceremonyin fiscal 2015 for the development of synthesis technology andapplied products of nano-polycrystalline diamond
Hitoshi Sumiya

recognition of the success in the world's ﬁrst mass

Chief Engineer/Fellow, Manager of Inorganic Materials Department

production of the diamond with a synthesizing technique toKatsuko Harano

turn graphite directly into nano-polycrystalline diamond at

Senior Assistant Manager, Inorganic Materials Department

Takeshi Sato Assistant Manager
Advanced Materials Laboratory(The names of the departments and positions are those at the time of winning the prize.)

Commemorating the accomplishments of late Dr. Masatoshi

an ultrahigh pressure and temperature (150,000
atmospheric pressure or higher and 2,000℃ or higher) as
well as the commercialization of the diamond by processing
it into a blade for precision cutting tools that can respond toeven extremely hard materials such as hard metal.

Okochi, who made great contribution to the academic andindustrial circles, the Okochi Prize was established as one of
the most prestigious prizes in Japan. The prize is awarded
annually to an outstanding achievement in the ﬁelds ofproduction engineering and advanced production
technologies in the country.
Nano-polycrystalline diamond has nano-sized microstructure
and much higher hardness than conventional artiﬁcial
diamond, and this new artiﬁcial diamond has overcome theweakness inherent to diamond that it can crack easily in a
speciﬁc orientation.
The Okochi Memorial Technology Prize was awarded in

33 CSR Report 2016

Nano-polycrystalline diamond SUMIDIATM BINDERLESS

development of new products and businesses that willcontribute to the progress of society, in accordance with thefollowing principles: Attaching importance to technology
and Building technical expertise, realize changes and strive
for consistent growth. Our efforts have resulted in many

growth. From our origins as a copper business, we haveingenious products. We believe this recognition is due to thedeveloped a wide variety of technological bases.

collective effort of the Sumitomo Electric Group.

We will continue striving to create new technologies andWith our superb creativity, the Sumitomo Electric Group willproducts with due consideration of future social needs, andcontinue to develop original, excellent technologies,

further accelerate our commercialization of technology inanticipating social changes and technological trends.

response to this time of rapid change.
Number of Patents Year by Year
(Number of patents)
9,000
8,000
7,000

6,440

6,341

7,064

6,651

6,000

Sumitomo Electric received Thomson Reuters Top 100 Global
Innovators Award for three straight years from 2013.

5,000
4,000

This award is given by Thomson Reuters to 100 companies

2010

●

6,824

7,030

7,067

2013

2014

2015

●

2012

(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.

Sumitomo Electric Sintered Alloy, Ltd.

■ Commendation for Invention in Fiscal 2015

Masato Uozumi

Invention Incentive Award in FY2015
Kinki Region Invention Awards

Assistant Manager, Development Group, Itami Manufacturing Department

Oil pump rotor （ Patent No. 4600844 ）Yuichiro Egami

Kentaro YoshidaCoreCategory

Senior Engineer, Product Development Group, Product Development Department
Engineer, Machining Engineering Group, Production Engineering Department

Products & Services

The award-winning invention is a technique for the design ofthe tooth profile of an oil pump rotor. With this technique,we were able to downsize a pump, realize its higher
discharge volume and reduce its driving power (driving
torque). Rotors based on the technique are employed in

Supply Chain

hybrid electrical vehicles to improve fuel efficiency andreduce CO 2 emissions. The design is also applicable topumps in non-automotive sectors, and is expected to help
meet social needs such as energy and resource savings.

Research and Development Expenditures
Industrial
al Materials

75

79

Environment & Energy
rgy

142

Electronics
cs

39
152

Basic research,
integrated/new ﬁelds,
prototype170
development
680

30

76
644

145

145
34

105.6

Infocommunications
communications

billion yen
Fiscal 2015

110.8

Automotive
Automotiv

Forecast for FY2016

110 billion yen

Social Contribution

684

169
Fiscal 2014

Environmental
Preservation

The annual amount in ﬁscal
2016 is forecast to be 110
billion yen, a similar level tothat in the previous ﬁscal year,
which was a record high.

Human Resources

VISION 2017
Interim Revision
Cumulative total:
480 billion yen

Group's CSR Activities●

The Sumitomo Electric Group has been pushing ahead with

2011

In Japandevelopments, are committed to protection of intellectual
inventions, based on the analysis of patent data every year.

8,014

0

and organizations that are vigorously working on innovative
property rights and have generated globally influential

5,411

4,894

3,000

6,225

7,621

Governance

Receiving Thomson Reuters
Top 100 Global Innovators Award

Research andDevelopment Expenditures

Business Outline

Technology is the engine of the future and the very source forBasis for Management

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

billion yen

CSR Report 2016

34

TOPICSHEPCO Minami-Hayakita Substation【Redox Flow Battery】

Operation of one of the world's
largest storage battery systems
has been started
The operation of a large-scalelarge scale storage battery system at Minami-Hayakita
Minami Hayakita
Substation, which was jointly developed by Hokkaido Electric Power Co.,
Inc. (HEPCO) and Sumitomo Electric, was initiated in December 2015.
With a rated output of 15,000 kW and storage capacity of 60,000 kWh, it
is one of the largest redox flow battery systems in the world, andattracting global attention.
Building housing the storage battery system

Aiming for a new style of electricity that is friendly to everyone
in all stages of power generation, transmission,
distribution, storage and use
We aim to develop a society with new power and energy infrastructure through the smart energy
system proposed by the Sumitomo Electric Group, and redox flow battery is a key technology andproduct to the society. In 2012, a large-scale redox flow battery with storage capacity of 5,000
kWh was installed in Yokohama Works of Sumitomo Electric. More than 5,000 people from Japanand other countries have visited the facility since then and highly valued the capabilities of thebattery such as the safety and long service life along with applicability to various uses related tothe improvement of power stability and efficiency. Meanwhile, in this demonstration test in
Hokkaido, a redox battery system with storage capacity of 60,000 kWh, which is 12 times higher
than that of the system in Yokohama Works, has been operated as one of the largest power
storage systems in the world. Hokkaido is a prefecture where a large amount of renewable energy
such as wind power and photovoltaic power has been introduced, and there is demand forlarge-scale battery to adjust electric power storage. In the demonstration project, we will work
together with HEPCO to obtain results that can earn a high level of trust from customers.
I belong to the Energy System Division, which is in charge of the commercialization of the

Kikaku Tokumaru

technologies and products created in R&D units. I would like to use the project as a foothold for

Deputy General Manager,
Energy System Division
Executive Officer

the marketing of large-scale power storage systems not only in Japan but also foreign markets
including the US and Europe. It is planned to add container-type and other compact types ofstorage battery to the product lineup in the future to enhance the presence of Sumitomo Electric.
We will continue to offer our original technologies and products for the smart energy systemcovering all power stages of power generation, transmission, distribution, storage and use.

35 CSR Report 2016

Basis for Management
Business Outline
Governance

ito

Ch
337

se

e

Lin

Chitose CityoSekishLine

234

New Chitose Airport

HEPCO
Minami-Hayakita
Substation

Lake Shikotsu

o
aid

k

Hokkaido

Hok

Maintenance and inspection

36

Tomakomai
City

Hida
k
Main aLine

Supply Chain

We will develop a sustainable futurewith redox flow battery

Products & Services

M

Monitoring room

235

ine

nL

ra
uro

Hidaka
Expwy

wy

Exp

Core
Category

276Group's CSR Activities

To Sapporo453

To launch this project, I served as the site manager of the battery facility installation work andengaged in all stages from the start of construction to the operation of the system. This system isflow battery. As an electrical facility, the system characteristically requires strict safety
management. During the construction period of approximately 17 months, a total of about 200
people including suppliers worked on site, and the management of their daily and weekly work
schedules, as well as sharing of information among them, was conducted in a meticulous manner.

Human Resources

based on the expertise and experience that Sumitomo Electric has accumulated on the redox

Then, in December 2015, the system was successfully completed, and the operation was begun
for daily duties with renewed determination.
This demonstration project aims to evaluate the performance of the redox flow battery incooperation with HEPCO and clarify its superiority in performance and price over other types ofEnvironmental
Preservationin the same month. Considering that it is only the start of the main part, I am continuously working

battery.
energy, such as the supply demand balance and surplus electricity, and establish an environment

Assistant General Manager,
System Engineering Group,
Energy Storage Engineering
Department,
Energy System Division

where renewable energy can be used more actively. We regard the demonstration test in the
Minami-Hayakita Substation as an important step toward the sustainable future in which the redox
flow battery plays a key role worldwide.

CSR Report 2016

Social Contribution

By disseminating redox flow batteries, we would like to help solve the problems in renewable

Syuji Hayashi

36

Product Quality & Product Safety
Basic Approach② Pursuit of SEI's Just-In-Time approach: We will makeAs a corporate group involved in manufacturing, theproducing what is needed in the quantity needed when it is

Sumitomo Electric Group is based on customer-oriented andneeded. While the methods to pursue it are wide ranging

quality-oriented policies and works for the fundamental

depending on the type of the products and production

target of contributing to society through the supply ofsystems, they all aim to realize a common philosophy and we

high-quality products that satisfy customers. In addition tocall it SEI's Just-In-Time approach.

continuous efforts to pursue just-in-time manufacturing by

quality of products, the company's attitude toward quality isevaluated by society more strictly than ever. In this context,
our Group works to strengthen its underlying manufacturing
competence to deliver high-quality products to customers ina stable manner, and continuously makes steady efforts tosystematize daily duties, implement them soundly and correct
any problems.
Sumitomo Electric has historically strived to enhance the
manufacturing competence under its basic policies including
participation of all employees and continuous improvement.
To promote these activities even more strongly, we set up
Monozukuri Technology Improvement Committee as acompany-wide organization in 2015, and promote group-wide
activities with Own Process Quality Assurance activities and
SEI's Just-In-Time approach as the two main pillars.
As part of the efforts to systematize the daily operation, while
each division used to establish its quality assurance system
independently, the Sumitomo Electric Group Quality
Management Global Standards was established as a common
framework to be applied to divisions throughout the Group in

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

QR-1 campaign logo

reliability to overtake the competition.

QR：Quality & Reliability

February 2013. We encourage the divisions to develop andstrengthen their quality assurance systems based on thestandards so that customers can use the Group's productswith a sense of security. A company-wide quality

Own Process Quality Assurance Activities
Aiming for Zero Complaints

developed, in which we make continuous efforts to enhance

We are introducing the degree of quality assurance assessmentand efforts for improvement into overseas sites as well

the awareness of quality among all employees with focus on

In the QR-1 campaign, we have promoted own process

the three priority activities of Own Process Quality Assurance

quality assurance activities, which are comprehensive efforts

activities, Global Quality Management System Audits andto prevent defects from being produced or passed down to

Quality Management Education.

the following process in each process, for five years since

improvement activity called the QR-1 campaign is also

2010. The divisions of the Sumitomo Electric Group, which

Monozukuri Technology Improvement Activities

manufacture various types of products, are committed to

We promote manufacturing strengthening activities
based on Own Process Quality Assurance activities
and SEI's Just-In-Time approachactivities. The Quality Management Division works to

The Sumitomo Electric Group conducts business operations

and other support measures.

their important themes on own process quality assurance
promote such activities through practitioner training
education, exchange meetings between different divisions

in five business segments, and the types of its products andproduction systems are wide ranging. Irrespective of type, weshould meet various customer needs, produce top quality
products sought by customers in a safe and environmentally
Banner for the QR-1 Campaign

friendly production system with the shortest lead time anddeliver them to customers in a reliable and timely manner.
This is the ideal manufacturing in SEIPS.＊
To this end, we will pursue Own Process Quality Assurance
activities and SEI's Just-In-Time approach as the two main
pillars to identify problems, thoroughly eliminate overburden,

Process

Process

Produceno defect

Produceno defect

Pass
no defect

Good
products

Pass
no defect

Good
products

Shipment

Inspection
Good
products

waste and irregularity, establish a structure of continuous
improvement and become a company with the highest

We also introduced the Degree of Quality Assurance, ancompetitiveness in manufacturing.

indicator of the activities to eliminate defects in processes.

① Pursuit of Own Process Quality Assurance activities: We

Visualizing quality risks with the indicator, we develop thewill make continuous efforts to ensure quality in theactivities in a more quantitative manner. In this system, theprocesses and prevent defects from being produced or

rank of prevention of defect occurrence and that ofpassed down to the following process in each process

prevention of defect flow-out are respectively determined by

Glossary ＊SEIPS

37 CSR Report 2016

SEI Production System (SEIPS) is the concept of the production system focusingon own process quality assurance activities and SEI's Just-In-Time approach.

(sufficiently prevented) to 4th (not prevented), and combined
to determine the degree of quality assurance on a six-point
scale from S to E.
To prevent complaints from occurring, we should ensure that

Enhancement of Quality Management Education
Quality Management Education is developed throughout
the Group including overseas companies to cultivate
the culture of quality firstprograms on quality control at the SEI University (see Human

when the rank of prevention of occurrence is 2nd (no defectResource Development in P55 for details) to improve andis produced in a normal operation), if that of prevention of

ensure the quality of products and services at higher levels. We

being passed to the following process is 4th (defects cannot

started a new quality management training course designated forbe prevented from being passed to the following process), themanagers as a nomination-based training program for those ofDegree of Quality Assurance is only C. Defects can be passed

departments, sections and groups related to productto the following process or the customer in this case, anddevelopment, design, manufacturing and quality assurance inefforts have to be made to improve the Degree of Quality

fiscal 2014, and have since worked to meet the target of

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

providing the training to all managers within two years.

Assurance allows the divisions and Group companies toEventually, the course was held 57 times in total by the end of

promote activities to fill the gap between the target andfiscal 2015, and taken by 978 persons, which represented about

current performance in an efficient manner. We will continue

90% of the managers who are required to take it in Japan.

to develop these Own Process Quality Assurance activities ongroup-wide and global scales this fiscal year.
Rank

Status of the processes and operations

1st

2nd

3rd

4th

1st

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

1st

S

S

A

A

2nd

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

2nd

S

A

B

C
3rd

3rd

A

B

C

D

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

4th

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

Rank of prevention of
defect occurrence

Degree of
Qualityassurance

4th

A

C

D

E

We work to improve various education programs we haveestablished, such as position-based training for all employees,
nomination-based training in accordance with specialized jobs
and special issues, including equipment maintenance, andoptional training to learn relevant knowledge, along withpractical education including QR-T,＊ MKP＊ and GKP.＊ Overseas,
we use the personnel education activities of the Sumitomo
Monozukuri Development Committee in the U.S., as well as themeetings of Quality Management Committee under the Human
Resource Development Committee in China, as opportunities toorganize exchanges of information on model cases and provide
training sessions on Own Process Quality Assurance activities. In
employees, completed Quality Management Education

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

programs since fiscal 2010 has reached 24,215. We will continue

It is essential to ensure that all employees understand the

Global Quality Management System Audits

their own quality awareness. To this end, messages from thein-plant broadcasting on the first day of each six-month
period, and the top management inspects manufacturing

to develop the culture of quality first involving all employees.

We conducted audits of 78 Japanese bases and26 overseas bases by fiscal 2015
In order to evaluate the quality control activities of the units in lightof the Sumitomo Electric Group Quality Management Global

systematically conducting Global Quality Management System

displaying quality-related banners in each site. In November,

Audits in the main bases of each business unit. In these audits, we

which is designated as Quality Month in the Sumitomo

identify weaknesses of each unit in terms of management, design,

Electric Group in Japan, ﬂags and posters are additionally

manufacturing and center function to provide an opportunity todisplayed to enhance awareness, and each division also

improve its quality assurance system, and support to overcome

selects a subject for short-term intensive activities to improve

the weaknesses.

the quality structure.

Since the start in fiscal 2010, the audits have been conducted at

Sumitomo Electric also holds a group-wide Quality

78 sites in total. All of our main facilities in Japan have completed

Management Convention twice every year (on May 28 andthe second round of the audits. The audits are repeated with theNovember 12, 2015 during fiscal 2015) to report progress inaim of promoting continuous improvement of the quality

the quality indicator, problems in each division, achievements

assurance system. Overseas, the audits were conducted in a total

from the efforts and other issues to the top management andof 26 sites in China and Southeast Asia with collaboration withshare such information across the Group. At the conventions,units having the center function, along with enhancement of

we commend divisions implementing activities that set aawareness of quality among local employees, in mind.

good practice for other divisions, as well as individual

To maintain and improve the quality assurance system based on

employees who have created excellent posters and slogans

the Group Quality Management Global Standards, we willthat encourage awareness of quality improvement tocontinue to check progress in compliance with the standards

stimulate quality-related activities.

through the global quality management system audits.

Glossary ＊QR-T

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

＊ＭＫＰ

＊ＧＫＰ

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

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

CSR Report 2016

Social Contribution

improve weaknesses of their quality assurance systems, we areto continue their commitment to the QR-1 campaign byEnvironmental
Preservation

Standards from the perspective of customers, as well as toare reflected on the operations. In addition, all workers vow

Human Resources

sites of the divisions to check whether or not their intentions

Supply Chain

President are disseminated through in-house magazines andprograms. The cumulative number of the persons who took the

Products & Services

Activities to Enhance Quality AwarenessCore
Category

fiscal 2015, a total of 6,538 persons, including overseas

top management's thoughts on quality and to thereby raiseGroup's CSR Activities

Rank of prevention of
defect ﬂow-out

Governance

The Sumitomo Electric Group provides employees with trainingthat causes the complaints is B or higher. For example, evenBusiness Outline

the Degree of Quality Assurance for the type of the defectBasis for Management

type of defect in each process on a four-point scale from 1st38

Outcomes of the Quality Management Activities
We will continue to make steady efforts toeliminate complaints
Thanks to our ongoing quality management activities, thenumber of complaints is on the decrease. In fiscal 2007 webegan to collect data on a global scale including data fromoverseas affiliates, and the number of complaints has been
reduced to about 30% of the figure in fiscal 2007. However,there are still many issues to be improved to eliminate
complaints. We will continue to make efforts to eliminate
complaints with the three main pillars of Own Process Quality
Assurance activities, Global Quality Management System
Audits and Quality Management Education, in addition to
Monozukuri Technology Improvement activities.
Number of Complaints by Year (results in 2007 = 100)
100

100

80

67

60

54

50

49
36

40

31

29

32

20

0

2007 2008 2009 2010 2011 2012 2013 2014 2015 （Fiscal year）(Note) The data cover Sumitomo Electric and its manufacturing aﬃliates in Japanand overseas (including the Sumitomo Wiring Systems Group)

CSR
VOICE

General Manager,
Quality Assurance Department,
Sumitomo Electric Fine Polymer, Inc.

Sumitomo Electric Fine Polymer, Inc. manufactures a wide
range of products including heat-shrinkable tubings, fluororesin
coating products and porous functional membranes, which areused by customers in automobile, electronics, semiconductor
and various other sectors.
Meanwhile, we received many complaints about our irradiatedproducts sold in Japan, and the average number of complaints
received in a month was 4.1 in fiscal 2013 and 3.7 in fiscal
2014. Therefore, in fiscal 2015, we organized action plans forthree activity areas, namely setting-up, maintenance andpursuit of defect-free process conditions, in cooperation with
relevant divisions under the guidance of the Quality
Management Division of Sumitomo Electric, and made efforts
to ensure defect-free process conditions. Our activities in thearea of setting-up included strengthening of checks in thedesign review and identification of risks in DRBFM＊ while we
introduced 3 points control of Quality as an initiative for thearea of maintenance and promoted efforts to achieve degree Bof quality assurance for each defect in the area of pursuit. As aresult, the average monthly number of complaints reduced to
1.5 in the second half of fiscal 2015, a decrease of 60% fromthe FY2014 level.
Although we still face many challenges, we will work to further
stimulate the activities in the three areas to eliminate

39 CSR Report 2016

Design review based on failure mode (DRBFM) is aquality management method where design review isconducted with focus on changes from the provendesign to identify and solve any problems.

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 established to
specify the items to be carried out at each stage of the
manufacturing process such as procurement, design, production
and quality assurance based on JIS Z7201 Management ofChemical Substances in Products - Principles and Guidelines.
We have also established the SEI Standards for Chemical
Substance Management, which are the standards for the
management of chemical substances in products to be managed
at each of the stages, and implement the SEI Guidelines forGreen Quality Purchases (note) based on the standards, while
conducting product assessment at the design and development
stages. Through these initiatives, we strive to prevent hazardous
chemical substances with large
environmental impact such as
mercury and cadmium from being
contained in products.
The Sumitomo Electric Group also
has the Chemical Management Task
Committee in place to enhancecoordination within the Group.

Compliance with Regional Regulations on
Chemical Substances across the Globe

Satoru Nakatsuji

Glossary ＊DRBFM

We are managing chemical substances properly inaccordance with our own guidelines based onJapanese Industrial Standards(JIS) guidelines(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.

We have reduced
complaints by 60% througheﬀorts in three domains

complaints.

Management ofChemical Substances in Products

We are promptly responding to progressive tightening ofregional regulations on chemical substances across the globe
The Sumitomo Electric Group has taken measures to replace
the substances listed in the EU RoHS＊ and ELV Directives＊, andis meeting customer demand for products that contain noprohibited substances. While four types of phthalates wereadded to the list of substances banned by the RoHS Directive,
we have completed activities aimed at the discontinuance of
their use in the products subject to the directive as part of an
initiative in the Action ECO-21 (Phase Ⅴ) Campaign. In the
future, we will make efforts to avoid use of the phthalates
newly added to the prohibited substances in the purchased
parts used for the products subject to the RoHS Directive.
At the same time, to comply with the REACH＊ regulation, weare preparing for final registration of the chemical substances
subject to this obligation, and completed the registration ofgallium arsenide (GaAs) in 2012. We are also making efforts toensure appropriate response to the requirements of the REACH
regulation including reporting of the SVHC＊ contained in
products.
In the meantime, to quickly respond to progressive tighteningof regional regulations on chemical substances across theglobe, we are working to collect information on regulations in
Europe, China and other countries and share the information
within the Group.

＊RoHS Directive＊ELV Directive

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

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

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

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

Improvement of Logistics Quality

The Sumitomo Electric Group is committed to the eliminationof transport accidents and the improvement of logistics
quality through the concerted efforts of the interested parties
including logistics units, divisions and transport companies.
We have been developing 1-2-3 activities since fiscal 2014,
to predict risks and take measures to avoid them, regularpreliminary meetings on safety and quality held between
transport companies and logistics units, review of standards,
etc. and sharing of information on accidents via the corporate
In addition, we organize a forklift basic operation competition
for truck drivers in collaboration with transport companies inan effort to eliminate accidents related to forklifts. The eventis also used as an opportunity to recheck the basic operationand provide a lecture on emergency procedures in case of oilsafety related to truck transportation on the whole.
As a result of these efforts, the number of logistics accidents
decreased by six year-on-year to 32 (excluding those in
Sumitomo Wiring Systems, Ltd.), and the accident rate pertransportation was also reduced to 0.009%.

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.

Social Contribution

leakage from a vehicle, aiming to enhance an awareness of

Our Group's business activities consist mainly ofbusiness-to-business transactions, and we therefore believethat the proper identification of the opinions and demands
from customers (companies) through daily sales activities andfurther quality improvement of products and services will leadto greater customer satisfaction.
Based on this recognition, a 360-degree survey has been
conducted since fiscal 2002 for persons in charge of sales.
Specifically, the sales capabilities of the sales persons are
determined and assessed with a questionnaire administered tothemselves, their superiors and clients (several companies).
The assessment results are fed back to the sales staff and theirsuperiors to encourage the staff to enhance their sales
capabilities. In addition, the overall results are used to review
the education and instruction methods.
While we have conducted a 360-degree survey in Sumitomo
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
Group in a way to respond to ongoing globalization and to
take measures aimed at improving customer satisfaction.

Environmental
Preservation

intranet to prevent the recurrence of similar accidents.

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

Human Resources

which include patrol of the delivery sites by responsible staff

Customer Satisfaction Improvement
Activities by the Sales Group

Supply Chain

We endeavor to prevent accidents by adhering to
the basics and sharing information

Products & Services

The Sumitomo Electric Group believes that product quality andoffice work quality are inseparable in business execution andequally focuses on office work quality improvement activities,
aiming to eliminate critical office work mistakes and raise theoffice work efficiency. Specific activities are: (1) development
and periodical review of relevant documents such as company
regulations, business rules and office work instructions, (2)thorough implementation of measures to prevent recurrence of
mistakes to reduce office work mistakes, and the use of
Hiyari-Hatto memos, or near-miss reports, to prevent
mistakes and (3) improvement of office work efficiency by
Kaizen at the office.
In fiscal 2015, we revised the group-wide rules specifying theprocedures to be taken in case of an office work mistake anddeveloped an information system base to share information on
the measures, which allowed us to share the office work
quality level and specific problems of each division and affiliate.
From now on, we will share the examples of measures basedon such information and provide training on the universal
approach of our Group to addressing office work mistakes inorder to promote the establishment of a framework that helps
reduce these mistakes in a more efficient and effective manner.
While we have implemented office work quality improvement
activities for more than 10 years, the basic policy andframework of the activities have been reviewed and theawareness of the activities has been enhanced to a certain
level in Japan. The next fiscal year is the final fiscal year for
VISION 2017, and the Sumitomo Electric Group needs toadvance to a higher stage in order to generate specific resultsof the activities. In addition to further improvement of office
work quality in each division and affiliate in Japan, we will also
work to introduce the activities into overseas affiliates.

Core
Category

Under the corporate principles of offering the very best goods
and services to satisfy customer needs and contributing tocreating a better society and environment, with a firm
awareness of our social responsibility, the Sumitomo ElectricGroup is making efforts to enhance the safety of products.
We adopt the basic approach that the products to be
introduced to the market should undergo thoroughexamination of safety, especially at the development anddesign stages.

Group's CSR Activities

We are promoting the establishment of a frameworkthat helps reduce office work mistakes in a more
efficient and effective manner

Governance

We are striving for the improvement of the safety level throughpractical training and voluntary inspection with focus on the pursuitof product safety at the product development and design stages

Business Outline

Activities for Improvement of Office Work Quality

Basis for Management

Product Safety (Product Liability)＊ＳＶＨＣ (Substances of Very High Concern)
SVHC stands for Substances of Very High Concern .Chemical
substances designated by the EU as substances which may
cause serious eﬀects to human health or the environment.

CSR Report 201640

〈 CSR Core Category 〉

Supply Chain〈 CSR Priority〈CSR
P
Theme 〉

Promotion of CSR Procurement

We are promoting CSR procurement activities in response to market expansion.
The Sumitomo Electric Group currently recognizes three
dimensions of market expansion in relation to material
procurement: geographical expansion; expansion of risk factors
and other issues concerning procurement activities; andexpansion of procurement of materials for new businesses. To
respond to such expansion, we set promotion of CSR
procurement as a priority theme for VISION 2017 and seek tostrengthen the trustful relationships with our suppliers according
to the following procedure.

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

I promote CSR procurement using experience in
conﬂict minerals investigation
Yosuke Morimoto Assistant Manager, Procurement & Logistics Department, Sumitomo Electric Device Innovations, Inc.
Sumitomo Electric Device Innovations manufactures devices for optical and wireless communication,
which are essential for broadband network. All of us are making strenuous eﬀorts to meet the rapidly
growing worldwide demand in the information and communication ﬁelds.
I was in charge of investigating and conducting survey of conﬂict minerals in 2014, but since the
Dodd-Frank Act had just been enforced, I struggled not only explaining our new action policy tosuppliers and requesting their cooperation for the survey, but also organizing submitted data on
hundreds of smelters in the world and preparing reports for our customers. I asked precursory andexperienced suppliers for advice and relevant information, and drastically changed the investigation
method based on the advice. Finally, I could complete all the surveys and greatly appreciatecooperation of suppliers.
In ﬁscal 2015, Conﬂict Minerals Investigation Promotion Group was set up as a specialized section
and strengthened as an initiative for CSR procurement. I always feel impressed with the rapid
development of communication infrastructure every time I have an overseas business trip, andI would like to continue to work in strong consideration of CSR from a global perspective.

Supply Chain
Basic Procurement Policies

Group Procurement System

We share our Basic Procurement Policies with main
suppliers and seek their understanding and cooperation

We are working to ensure thorough compliance with
our policies and enhance awareness amongprocurement staff on a global scale

The Sumitomo Electric Group considers procurement to be aservice that supports the foundation of its business

Based on the Basic Procurement Policies, the procurement

activities, and in May 2006, established Basic Procurement

measures and activities of the Sumitomo Electric Group are

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

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

Basic Procurement Policies to our main suppliers, along with

the Procurement Division and composed of the staﬀ in

our Group companies, and have sought their understanding

charge of procurement in 23 divisions and Group companies.

and cooperation.

Speciﬁcally, the oﬃce members work together to promote

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

VA＊ (value analysis) activities and provide education toenhance compliance 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 promote coordinated procurement on aregional basis under the initiative of the International
Procurement Oﬃces (IPOs) of the Procurement Division

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

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

5．Promoting procurement activities friendly to
the global environment

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

Web

41 CSR Report 2016

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

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

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

Commitment to CSR Procurement

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

For promotion of CSR procurement, in addition to activities toensure that suppliers understand the guidelines, we need tocheck the progress in the dissemination of the guidelines. To
this end, we conduct a questionnaire survey of suppliers.
As shown in the table below, we have gradually expanded
the scope of the questionnaire survey since its start in ﬁscal
2013 to include main suppliers of Sumitomo Electric andGroup companies. A total of roughly 1,600 companies havecooperated with the survey by the previous year.

Business Outline

include provisions concerning response to the issue of

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

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

CSR Procurement Activities in
Cooperation with Suppliers

The survey allowed us to check the commitment of our
suppliers to CSR procurement. We also learned that our

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.

identiﬁed the points to be improved in the survey method.

eﬀorts to ask them to cooperate were still insuﬃcient, andRequest to suppliers for promotion of CSR procurement andthe questionnaire survey method
Establishment of
the CSR Procurement Guidelines● Request to suppliers for promotion of
CSR procurement●

2. Improvement of Technological Capabilities
4. Contribution to Preservation of
the Global Environment

2013 to 2015

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

Request to suppliers for promotion of
CSR procurement● Questionnaire survey to suppliers ofmajor overseas aﬃliates●from 2016

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

Core
Category

6. Social Contribution and Elimination of Antisocial Forces

Request to suppliers for promotion of
CSR procurement● Questionnaire survey to a total of
approximately 1,600 major suppliers in Japan●

Products & Services(Including Response to the Issue of Conﬂict Minerals)

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

Supply Chain

CSR
VOICE

We work together to establish a healthy androbust supply chain

Mr. Shigeaki Suzuki PresidentGroup's CSR Activities

2010 to 2012

1. Provision of Useful and Safe Products and Services
3. Promotion of Sound Business Management

Governance

Sumitomo Electric GroupCSR Procurement Guidelines (extracted)※

Mr. Shuji Kuribayashi Supervisory Group Manager

SAIJOINX Co., Ltd

Environmental
Preservation
Social Contribution

Web

Human Resources

With a history of 65 years, SAIJOINX is a manufacturer that supports developmentof sheet metal processing. As a group of professionals, we help customers thatneed assistance with various metal-related plans so that they can solve theirproblems and realize the plans. A total of about 100 employees currently work in
our Kyoto and Yokohama sites.
Our customers, including Sumitomo Electric, are expanding into Germany, theUnited States and various other parts of the world. We serve as an innovation
partner for them with know-how to supply products more quickly at lower prices.
We started business with Sumitomo Electric when we proposed manufacturing of sheet metal products in 2002, and haveestablished a good relationship since then. Sumitomo Electric always considers our proposal carefully, and our relationship is not ahierarchical one but a partnership to work together to create good products.
We receive a wide range of inquiries as to CSR procurement, like other companies, these days. Although companies of a similar size
to us are apt to assume that CSR procurement is a cost increase factor, we consider that any companies, irrespective of the size,
should ensure and maintain the corporate ethics underlying CSR. We recognize that CSR procurement is one of the main activities ofcompanies as long as they are part of society, and that it is natural to place importance to CSR throughout the supply chain. The
attitude of a company toward CSR represents its way of existing. We believe that we can handle CSR procurement more easily as our
CSR activities are developed and managed in the future.
Of course, we face difficult and time-consuming challenges when dealing with CSR. We would like to continue to work together with
Sumitomo Electric and other customers to establish healthy and robust relationships like our daily business transactions.

※ Please see the following page for the entire guidelines.

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

CSR Report 201642

Contribution to Preservation of
the Global Environment

manufacture or store the products in the aﬀected area at the

We are committed to green procurement as
an essential quality factor

chemical manufacturer suspended operation due to a factoryﬁre and when distribution was blocked due to an explosion
accident at a hazardous material warehouse in Tianjin, China.

To promote environment-friendly procurement activities, theSumitomo Electric Group has made eﬀorts to eliminate theuse of banned substances in its products and enhancecontrol of other harmful substances contained in products,
based on the Sumitomo Electric Group Green Procurement
Guidelines since ﬁscal 2003. In ﬁscal 2012, the task
committee in which the Procurement Division also
participates revised the guidelines to issue SEI Guidelines forGreen Quality Purchases as a new version. We consider theguidelines as part of essential quality standards and use themto maintain green procurement activities.
We also introduced the ECO Factoring System incollaboration with Sumitomo Mitsui Banking Corporation inﬁscal 2009, which is now used by 63 suppliers. In this system,a favorable interest rate is applied to suppliers that promotea certain level of environmental conservation activities inorder to encourage suppliers to perform such activities.

Response to the Issue of Conflict Minerals
We recognize this issue as a major social challenge andaim to eliminate conflict minerals from our business
As an initiative for promoting compliance-based procurement
activities, the Sumitomo Electric Group recognizes that thematter of conﬂict minerals＊ from Congo and its neighboring
countries is a serious social issue in the supply chain. To fulﬁll
our social responsibility in procurement activities, we aim to
procure or use no conﬂict minerals involving any illegal or
dishonest acts as raw materials. To this end, we investigate
the supply chain on conﬂict minerals, and in the event thatthe use of minerals that may cause a social problem or serve
as fund for armed groups is found, we will take measures toavoid their use.
We will ask suppliers to cooperate with our investigation

time of disaster.
In ﬁscal 2015, we had fears of a supply shortfall when a

In these situations, nevertheless, we were able to procurematerials without impact on our production or that of ourcustomers, due to the prior examination of alternative
products and change of the distribution method in theabove-mentioned activities, along with the cooperation of our
suppliers. These incidents reminded us of the signiﬁcance ofsuch activities.
We will maintain these activities to strengthen our
procurement system that can supply products and services ina stable manner.

Organization of Partners' Meetings
Approx. 130 suppliers participated in Partners' Meetings
The Sumitomo Electric Group organizes Partners' Meetings toenhance its relationships with suppliers. We use thisopportunity to explain the outline of our business activities
and procurement policies and commend the suppliers thathave contributed to the business activities of our Groupthrough good proposals and support activities in order toestablish amicable and cooperative relationships with
suppliers. At Partners' Meeting, we also present the CSR
Procurement Guidelines, as well as procurement policies, to
ask for their cooperation and promote the guidelines actively.
To help overseas suppliers establish CSR procurement as
well, we present the guidelines at Partners' Meetings andreverse exhibition/negotiation meetings.＊
In addition to the group-wide Partners' Meetings, our Worksand divisions also hold such meetings individually.

mentioned above. In case that the use of minerals of concern
is found, the relevant suppliers are requested to takemeasures to avoid their use as we do in the Group.

Response with Business Continuity Plan (BCP)
Partners' Meetings

Our efforts to strengthen the system forstable procurement are producing steady results
The Sumitomo Electric Group is committed to theInitiatives to Ensure Compliance withLaws Related to Procurement

development and implementation of a business continuity
plan (BCP) for procurement divisions, which prepares forlarge-scale disasters and other emergency situations, toWe will promote compliance inprocurement through thorough inspection and training

ensure stable supply of products and services and thereby
avoid impact on the production activities of our customers.
The BCP assumes a situation that the suppliers of our partsand materials have suﬀered damage from disaster andsuspended production activities. To minimize the impact ofsuch suspension on our production and enable quick
recovery, we have examined alternative suppliers andproducts, in addition to replacement with commodity items.
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 canGlossary ＊Issue of conﬂict minerals

43 CSR Report 2016

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

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

Priority matters●

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

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

Compliance with internal control rules in regard to
procurement in the Sumitomo Electric Group＊Reverse exhibition/negotiation meeting＊Subcontract Act

A trade fair to exhibit items used in the Sumitomo
Electric Group and ask suppliers to propose better
alternatives in terms of quality, cost and delivery

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

Education System

also been started in overseas aﬃliates as a new initiative.

We organize training seminars in Japan and overseas
to improve procurement skills

Results of training and on-site inspection

For the purposes of development of reliable procurementstaﬀ and handing down of procurement ethics, knowledge

Training
seminars

provided an OFF-JT＊ program for working staﬀ, which is
combined with existing OJT＊ to create a synergistic eﬀect
that will improve procurement skills.
The OFF-JT program in ﬁscal 2015 was composed of 7
courses including procurement-related laws and regulations
andSubcontract
Act andinternal control

In Japan: 1 division of Sumitomo Electric,
12 aﬃliates
Overseas: 8 aﬃliates

Customs
Law

In Japan: 28 divisions of Sumitomo Electricand its aﬃliates importing directlyfrom overseas

CSR, environment and ethics,

each of which wasprovided by an expert in the Procurement Division. The
experts used textbooks they prepared, and gave lectures
through teleconferences with sites in Japan and overseas. In
total, 254 persons attended the lectures.
Aside from these initiatives, we organized a training program

We selected the Subcontract Act, the Customs Law andinternal control as the themes for the training seminars, andprogram. This program develops core personnel for theestablishment of an autonomous system to comply with theact in each division and company because the Subcontract
Act has to be made known widely not only in the sections incharge of procurement but also in manufacturing anddevelopment sections.
Overseas, we hold liaison committee meetings in the regions
where our Group companies and aﬃliates are concentrated.
The meetings are attended by staﬀ in charge of procurementof our aﬃliates in the respective regions, who are provided
with training seminars concerning procurement.
In the future, we will organize training seminars regularly tofurther disseminate the Basic Procurement Policies andconsider providing such seminars at more sites.
Results of Education
Date

Key personnel
development
programexpand and improvethe education andinspection activities to

7

28

135※

25

2nd half of FY2015

7

28

119※

16

2nd half of FY2015

1

5

18

15

1st half of FY2015

4

5

87

42

2nd half of FY2015

4

7

97

37

※Number of those who passed the ﬁnal exam

promote compliancewith laws related to
procurement.

Environmental
Preservation

Procurement Compliance Training Seminars

Number of Participants in Procurement ComplianceTraining Seminars and Number of the Locations by Year
(Persons)

3,000

2,551

2,500

500

(Points)

1,329
861
11

12

2011

2012

Social Contribution

1,500
1,000

2,730

2,006

2,000

18

20

22

30
20
10

0

0

Participants

2013

2014

Human Resources

Training seminars
at overseas
liaison committee
meetings ofprocurement staﬀ

1st half of FY2015

Supply Chain

OFF-JT
Education
programNo. ofNo. ofNo. ofNo. ofparticipants
courses lecturescompanies(total)Products & Services

The Procurement
Division will continue toprovided a certiﬁcate for 18 persons who completed theCore
Category

previous ﬁscal year, and the regions where it is performed arestill limited. We will increase the target regions and target
sites in the future.

to develop key personnel on the Subcontract Act, andGroup's CSR Activities

organized three levels of sessions to enable the participants toattend suitable ones according to their knowledge level andduties. In addition to delivery lectures, we started to provide
training via a video conference system in ﬁscal 2012, whichallowed more locations to hold the seminars and increased
the participants. We will continue to work to expand thelocations and further enhance the awareness of compliancewith laws related to procurement within our Group.
In on-site inspection, the Procurement Division visits the target
sites to check compliance with laws related to procurement.
The inspection of Sumitomo Electric and domestic aﬃliates inJapan aimed to conﬁrm compliance with the Subcontract Act,
internal control rules and the Customs Law. For inspection on
the Subcontract Act and internal control rules, we selected
the target sites on the assumption of regular visits to them inthe future. With respect to the Customs Law, all of thesections importing directly from overseas were inspected tocheck the correctness of the amounts in custom reports, etc.
Inspection of overseas aﬃliates focused on the check ofcompliance with rules on internal control.
On-site inspection of overseas aﬃliates was launched in the

GovernanceOn-siteinspectionand expertise, the Procurement Division has developed andBusiness Outline

Organized in 22 regions (video conference: 12 regions;delivery lecture: 10 regions)● Attended by 2,730 persons in total● Themes: Subcontract Act, Customs Law and internal control● Courses: ① (all sections) basic/beginner course,② course designed for sections in charge of purchaserequests, ③ course designed for sections in charge ofmaking contracts●

Basis for Management

As to the priority matters, we organized training seminars andconducted on-site inspection in Sumitomo Electric and its
aﬃliates in Japan again in ﬁscal 2015. On-site inspection has

2015(Fiscal year)

Locations

Training program to develop key personnel on the Subcontract Act

Glossary ＊OJT and OFF-JT

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

CSR Report 201644

〈 CSR Core Category 〉

Human Resources〈 CSR Priority Theme 〉〈CSR

Promotion of diversity

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

◉ Introduce a new HR system to show career
opportunities within the Sumitomo Electric Groupbeyond individual companies.
◉ Develop an institutional framework to identify
executives in group companies as Global Executives.
◉ Develop common guidelines for both international
and inter-ﬁrm mobility.

I am committed to cultivation of executive personnel in Greater China fordevelopment of the business activities of the Sumitomo Electric Group
Ying Zheng Manager, HR & Administration Department, Sumitomo Electric Management (Shanghai) Co., Ltd.
I joined Sumitomo Electric Industries, Ltd. in 2008, and worked at the Osaka Head Oﬃce forapproximately seven and a half years. Now I serve as the HR manager in Sumitomo ElectricManagement (Shanghai) Co., Ltd. in Shanghai, China.
When I returned to my home country for the ﬁrst time in about eight years, I was surprised at theﬁerce competition in various business sections of the Chinese market, as well as the rapid change.
Under such a business environment, we at the HR Center in China have worked to establish the
China Talent Management System as a priority measure for the Global HRM Policy since 2015,
making eﬀorts to select and develop executive personnel for the Sumitomo Electric Group companies
located in Greater China.
Participating in this project, I keep thinking about subjects related to business, companies andhuman resources. I would like to continuously work to establish a working environment where
excellent personnel can play important roles regardless of nationality, race, gender or age in ourbusiness activities in Greater China, which account for about 20% of those of the Sumitomo ElectricGroup, to contribute to the development of the Group's business.

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

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 organizationand to sustain the growth of the business.

●

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

In the Sumitomo Electric Group, over 200,000 employees areworking actively in about 40 countries around the world. We
believe that for Sumitomo Electric to win the global
competition and grow further, it is essential that we fully
mobilize the Group's technologies, products, business models
and all other resources, and we acknowledge that it is mostimportant to secure and utilize highly capable employees
who support the efforts.
The Group has traditionally attached a high value to humanresources based on the Sumitomo Spirit. To clarify the basic
policies on human resources, we instituted the Sumitomo
Electric Group Global Human Resource Management Policy(Global HRM Policy) in September 2011. This policy specifies
the Group's commitment to creation of an environment thathelps employees realize growth and self-actualization throughwork, provision of various career opportunities regardless ofnationality, race, ethnicity, religion, age or gender, promotionof diversity and development of global leaders, in order toaccelerate our global human resource recruitment andpromotion. We have declared the policy to inform people inand outside of the Group about it.

45 CSR Report 2016

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

personnel in 2016. In the first year of the program, 21

Sumitomo Electric has adopted the Global Grade System,

trainees will report their achievements at the Top Executives

which is a personnel system applied commonly across theConference attended by top management of all Group

Group and allows talented and qualiﬁed persons to seek

companies in China as well as the president and othercareer development beyond the borders of individual

executives of Sumitomo Electric to be held in November

companies to engage in management of Group companies in2016. We will continuously develop and appoint theJapan and overseas or perform even higher duties. As the

personnel who will play central roles in the management ofﬁrst step, we introduced a grade called GL (Global Leader) on

the Sumitomo Electric Group through various initiatives.

We started a regional program in China to provide training to
the employees selected as competent and enthusiastic
executive candidates selected from among Group companies
are scheduled to receive training on management andparticipate in Action Learning from January to November. The

from overseas subsidiaries, other than those of listedcompanies, as the GL grade.
These executive personnel at the GL grade were also
recognized as Group Global Executive Personnel. Sumitomo
Electric's Head Oﬃce is in charge of management anddecision-making regarding their treatment. At present 33
companies, are recognized as Group Global Executive
Personnel. The personnel will be provided with a wide rangeof career opportunities to help them play more active roles
as global leaders in the future.

We are committed to the promotion of communication
between employees of Group companies
in Japan and overseas
In February 2014, the Sumitomo Electric Group's bulletins,
which used to be published separately in Japan andoverseas, were integrated into ALL SEI. This new periodical
is commonly published across the Group as a communication
tool for Group employees both in Japan and overseas.
ALL SEI conveys the Sumitomo Spirit, the Sumitomo ElectricGroup Corporate Principles, messages from executives andWe introduced the area committee system in 2015 to allow

information on our business performance, as well asGroup Global Executive Personnel to participate in businessinformation on our business and social contribution activities

management beyond the borders of individual companies.

in various regions, in order to share information and cultivate

The system aims to 1) enhance the presence of eacha sense of unity among Group employees.

business/base depending on the regional characteristics, 2)Interviews with our global

make use of the knowledge and experience of Group Global

executives,

Executives and 3) establish a network of Group Global

actively in various parts of

Executives to promote these activities. We have set up fivethe world, have beencommittees of Americas, Europe, Indonesia, China and otherpublished since the Autumn

Asia, which are working under the initiative of Group Global

2011 issue. The articles

Executives.

introduce specific examples

enthusiastic staff within the Group and cultivate and appoint
them, we are establishing a personnel database. Business
staff and formulate cultivation and appointment policies.

opportunities in the
Sumitomo Electric Group inorder to further enhance asense of unity among Group
employees as well as theirmotivation.
ALL SEI

Number of Group Employees in the World by Year

Numbers as of March 31 of each ﬁscal year

200,000

150,000

2006

2007

2008

2009

2010

2011

2012

2013

2014

Americas18,201

23,962

15,744

13,852

15,164

19,712

24,27329,470Europe/AfricaSoutheast
Asia

27,634

31,406

32,667

33,834

41,23047,73547,64425,76627,167

34,792

34,31037,53843,000China

29,36734,93933,80837,84351,887

46,788Japan

32,88536,25135,53637,36436,95437,499Total

133,853 153,725 152,547 157,203 182,773 194,734 206,323 225,484 240,798 111,637 129,228 240,865

Male

FemaleTotal

34,82818,061

15,43933,50054,24556,477

21,41334,86056,27349,86856,40858,27820,032

41,816

61,84847,39047,64652,323

20,76029,94750,707

37,14837,71538,892

31,371

7,166

38,53750,00002006 2007 2008 2009 2010 2011 2012 2013 2014 2015 (Fiscal

year)

Social Contribution

100,000

2015

Fiscal year

Environmental
Preservation

No. of employees (persons)

250,000

Human Resources

Units also hold meetings with executives to identify excellentof self-realization and career

Supply Chain

To provide various career opportunities to competent andProducts & Services《 Development of System for Cultivation and Appointment
Plans through Establishment of Personnel Database 》

who workCore
Category《 Area Committee 》

Group's CSR Activities

persons, most of whom are executives of overseas Group

Group Global Magazine ALL SEI

Governance

April 1, 2014, and appointed board members and equivalents

Business Outline《 Selected Personnel Training Program for Managers in China 》

Basis for Management

Global Grade System andGroup Global Executive Personnel System※ Sumitomo Electric and its consolidated subsidiaries

CSR Report 201646

Diversity at
Sumitomo Electric Group :A Dialogue between
Masayoshi Matsumoto
President & CEO Sumitomo Electric Industries, Ltd.

Mike Lawson
President Sumitomo Electric Wiring Systems (Europe), Ltd.

Masayoshi Matsumoto, the president & CEO of Sumitomo Electric, and Mike Lawson, the president of Sumitomo
Electric Wiring Systems (Europe), Ltd. (SEWS-E), talked about the significance of diversity as a management strategy.
They met each other for the first time in London in the 1990s when Sumitomo Electric established a joint venturewith a British company Lucas Rists Wiring Systems, for which Lawson was working at that time. This joint venturethen became a wholly owned Sumitomo Electric subsidiary and changed its name to SEWS-E.

What is the meaning ofdiversity in our globalizing world?
Matsumoto ▶ You could say that the word diversity
has diverse meanings, encompassing different
cultures, races, and religions. Sumitomo has truly
learned the many facets of diversity as it has
expanded. It is interesting that the understanding ofdiversity in Japan differs from that in Europe and therest of the world. When Japanese people talk about
diversity, it usually refers to gender. But when Miketalks about diversity, he is using the word to have amore comprehensive meaning. Of course, Sumitomo
Electric Group as a global company has an approachto diversity that focuses on women as well as allother facets.
Lawson ▶ For SEWS-E, the meaning of diversity isvery broad. In terms of gender the U.K. is quite
liberal, but SEWS-E has also made strides inadvancing female leadership in the countries we have

women are able to work night shifts, while in Egypt
this is not common. Although we received permission
from the Egyptian government to have women onnight shifts, we decided to respect the local culture
and not enact change too quickly. This is one of ourcultural challenges, but we are still working to pushand develop opportunities for women in the country.
Matsumoto ▶ I agree. A crucial factor of diversity
comes when entering a foreign country, which is to berespectful of the local culture and adapt businesspractices with flexibility and a spirit of openness,taking into account ways of working in the local areas.
When in Rome, do as the Romans do. But at the sametime, we are also united by the Sumitomo Spirit.
Lawson ▶ Yes, I think that is a core strength. The
anchor of our business is the core of Sumitomo: ourhistory, culture, and base here in Japan.

What are the leadership qualities you
look for in a diverse workplace?

moved into. For example, our largest factory in
Romania is led by a woman, which I did not think

Matsumoto ▶ We look for specific characteristics in

was possible 10-15 years ago.

the people we choose for leadership positions. They

SEWS-E approaches gender issues in countries inhave to have intelligence and a strong presence.

Europe and Africa with great consideration for the

They also need to have targets, and the

local culture. What works in Romania might not work

determination to complete things. They should bein an Islamic country like Morocco or Egypt, and ofresourceful, unafraid to follow their gut feelings tocourse there are further considerations to be paid forfind their personal paths. In terms of personality, they

the differences between local cultures in Islamicshould be cool and composed, open and natural,countries. In our factories in Morocco and the U.K.,

and fair and unselfish.

47 CSR Report 2016

Basis for Management

Lawson ▶ For me, firstly, you need to have respectfor everybody who works for you. The majority ofpeople who come to work have the same goals andobjectives. They want to do well for their families,
see their children grow up, be responsible in society,and be respected. This is fundamental to humanbeings, whether that person is in Egypt or the U.K. or
The second point would be to be quite humble andnever pretend to know everything. The humble
people in all countries should come to the fore. My

not just to replace like with like. If you can find alast point would be the importance of having a

local person who is qualified, then that person

banner to follow. An example is VISION 2017, whichshould be chosen.
Matsumoto ▶ Yes, we must have open minds when it

can easily relate it to what they are doing.

comes to our employees. No matter what country

One thing I would note is that often when you go

the person comes from, if the person has the ability,

into new countries, the first thing you do is findhe or she is the right person.

Governanceis something that everyone can rally behind as theyBusiness Outline

Japan.

people with good language skills because you haveto communicate. However, just because someone
leadership characteristics. You have to look beyond

What do you envision for the future ofdiversity at Sumitomo Electric Group?

language skills to find people with management
Matsumoto ▶ The world is getting smaller with

Matsumoto ▶ Regarding language, I recommend

globalization and technology, so diversity is truly

employees to learn English since it is a universal

necessary or Sumitomo Electric Group will be left

language that can be used all over the world. I thinkbehind as its competitors forge ahead. Without

this is important for communication at a global

diversity, we have no future. Some people viewcompany like Sumitomo Electric Group.

diversity as a threat because they are afraid of change.

of the company that diversity is something tolanguage skills, some people have to work muchcelebrate. And of course, however we change, we willharder than others. For me it is simple, but for people

never lose the core spirit of Sumitomo.

in Morocco or Romania their hard work learning

Lawson ▶ I think it is important to recognize theEnglish is much appreciated.

steps Sumitomo Electric Group has taken in diversity,

Another point I want to make is that at SEWS-E, we

and then to move forward. Just in my time here,

do not set quotas for diversity, but instead operate

there have been a large number of changes, including

based on the slogan The Best Man or Woman for

initiatives by Matsumoto-san. He has been a strong

the Job. Without quotas, we have still achieved

leader, flying a banner for everyone in the company

diverse workplaces by identifying individuals with

to follow. Nothing is too much trouble forpotential and making sure they get opportunities to

Matsumoto-san, and he is always willing to discuss

grow through specific projects and management andinitiatives with people.

leadership programs. I would also note that when it

The last thing I want to emphasize is that there arecomes time to change management, it is important

opportunities for everybody at Sumitomo ElectricGroup. As we have heard from Matsumoto-san, there
is a real desire from the top to let people expand
and grow. Diversity is happening at Sumitomo

Environmental
Preservation

do not speak English as a first language. For those

Human Resources

new ideas while at the same time reassuring the core

Supply Chain

Our company needs to be open to new people andProducts & Services

Lawson ▶ That is true. SEWS-E currently employs justover 20,000 people, and of those employees 19,700

Core
Category

attributes.

Group's CSR Activities

has good language skills does not mean they have

Electric Group and we encourage all our employees
Matsumoto ▶ Yes, I want to stress that managers
and employees are all in the same boat, so we needleaders with broad minds. No matter your country orSocial Contribution

to persevere to seize these opportunities.

cultural background, if you have the qualities forleadership we will give you the opportunity tosucceed.
CSR Report 201648

Diversity in Recruitment

Organization of Town Meetings

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

Employees are provided with opportunities tohave direct dialogue with executives

In ﬁscal 2015, Sumitomo Electric employed 167 new

As an initiative to enhance communication inside thegraduates for main career track in Japan, 24 of whom wereCompany, we organize town meetings at each of our Works,

female and 2 were overseas students. We also hired 44

in which a group of employees in speciﬁc functions frommid-career employees. To support the development of ourdifferent sections directly talk with board members, generalvarious business activities including those in new ﬁelds andmanagers, or other executives.

global markets, we continue to actively recruit women,

The participants have precious opportunities to inform theforeign students, mid-career employees and other diverse

executives of problems and requests concerning humanpersonnel.

resource development and promotion of diversity, as well as
those speciﬁc to their functions, and share such problems toseek clues and solve them. The meetings also help the

Number of Male/Female Employees Hired by
Sumitomo Electric (All Functions)participants create networks with employees in other(Persons)

divisions who are close in age.

350
300

258

250

220

200

In fiscal 2015, we organized the first town meetings for teamleaders in production sites at the four Works of Osaka, Itami,

63

51

43

36

51

296

281

268

320

Yokohama and Kanto. Manager town meetings, which had
been already organized, were held at the five locations of45

Osaka Head Office, Tokyo Head Office, Osaka Works, Itami

150
100

232

207

245

238

257

Works and Yokohama Works.
The opinions and other comments presented in the town

175

50

meetings are communicated to the relevant divisions on a0

2010

Female

2011

2012

2013

2014

2015

(Fiscal year)

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

CSR
VOICE

As of March 31, 2016

I participated in the
town meeting forteam leaders

Ratio of male/female
employees
Female

1,363

Male

persons

12.3％

timely basis and used for organizational operation, planningof personnel systems and other purposes.

Male

Total number of
Sumitomo Electric
employees:

9,745

Hiroaki Masuda

persons

Team Leader,
RF Plant RF Manufacturing Section,
Manufacturing Department, Energy System Division

87.7％

11,108
Ratio of male/female
managers
Female111
persons

3.0％

Total number ofmanagers in
Sumitomo Electric:

Male

3,649

97.0％

3,538
persons※Managers：assistant managers, section managers,
division managers, management positions

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

55

48

50
45

51

41

40
35
30

25

25

18

20
15

52

11

10
5

29

33 33

36
China
Malaysia
Taiwan

USA
India
Korea

38
3
2
1
1
1

SwedenNepal
FranceVietnamThailand

1
1
1
1
1

0

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

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

49 CSR Report 2016

Participation in the town meeting gave me a good
opportunity to think about my workplace and the
management of my team. There are not many chances tohave contact with other workplaces when I engage in field
operation and management as a team leader. So, it wasvery stimulating to exchange opinions with various
members from 12 work-site divisions, including
manufacturing, research and maintenance sections, mainly
about efforts in the respective workplaces and motivation
as a team leader.
Some participant said, I try to talk with staff in charge ofdevelopment on a daily basis and obtain any information,even if it is not important, to ensure smooth field
operation. I found that close communication with not only
field staff but also other persons concerned will help us
operate the work in my workplace smoothly.
Team leaders must have capacity to bring the teammembers together while improving their own skills as field
staff. With an awareness that I am in charge ofmanufacturing and team management, I will use theknowledge and findings acquired through the town
meeting for my duties.

【Reference】

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

Section managers or higher positions : 1.4%

Women's share as of January 16, 2016:
Assistant managers: 7.8%

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

Number and share of women in
section managers or higher positions

as of January 16 ofeach ﬁscal year

1.40
(Persons)

1.22

1.20

50

30
20
10
0

1.2

1.02

40

29

29
22

22

22

17

7

7

8

2011

2012

2013

10
2014

Participation and Advancement in the Workplace, we set

No. of general managers or higher positions
Share in section managers or higher positions

1.0

28
10
2015

(Fiscal year)

Governance

No. of section managers(Note) Above graphs cover data for Sumitomo Electric employees, including thoseon loan to Sumitomo Electric aﬃliates and other organizations.

and formulated an action plan in March 2016.

（１）Plan period (1st phase)《 Childbirth and Rearing Support Program 》

2 years from April 1, 2016 to March 31, 2018

【Targets】● We aim to increase the women's share in the newgraduates for main career track (to 40% or more forclerical staff and 15% or more for technical staff).
【Initiatives】
1st half of fiscal 2016:● PR activities mainly targeting female students● Improvement of capabilities to recruit women（3）Appointment《 Teleworking System 》
We introduced a teleworking system, which allows employees
who face restrictions to their work due to childcare, nursing
care, etc. to work at home or other locations, on a trial basis infiscal 2015. We will continue to work to enhance the flexibilityof working styles and develop an environment where diverse
human resources can play more active roles.

Hokatsu Concierge and teleworking
EMEA Team, Global Network System Division

Akisa Kamakura

Social Contribution

CSR Report 2016

Environmental
Preservation

There are many children on the waitlist for childcare facilities in the district where I live, so search for childcare facilities
must be started as early as possible. However, my maternity leave began before I took an action for it. I therefore usedthe Hokatsu Concierge service to obtain information on childcare facilities near my residence and workplace (such as thenumber of waitlisted children and simple comments about the facilities) quickly, and made use of it to select candidates.
In addition, based on the information, I was able to start to look for a nursery school at an early stage after childbirth, andthanks to it, I found a vacancy in a nursery school and returned to work within a year from childbirth as I wished. While it
was hard to work while taking care of the baby during the first few months after return to work, I have gradually learned to deal with themefficiently with cooperation of colleagues and family members.
I am now in charge of similar duties as I handled before the maternity leave while combining the shortening of daily working hours by 30
minutes with teleworking a day each week. While I used the teleworking system as a pilot case before the full-scale introduction, I think it isvery helpful for the work life balance. I hope that the application of the system to various uses is considered in addition to child rearing andnursing care and the development of the system is promoted so that it can be used to establish a pleasant working environment.

Human Resources

2nd half of fiscal 2016:● Establishment of a network of employees that responds
to diversity

children ( hokatsu in Japanese), various kinds of know-how
are needed because the approach and schedule of suchactivities depend on the childcare environment in the place ofresidence and the month of birth of the children.
This Hokatsu Concierge system, which was started in
November 2014, aims to help employees during childcare
leave return to work smoothly at the time she hopes to return.
Know-how on hokatsu depending on the circumstances ofindividual employees, as well as information on childcare
facilities, is provided in this system.

Supply Chain【Initiatives】
1st half of fiscal 2016:● Implementation of measures to support female employees
on main career track in their career development● Development and appointment of female employees on
general track● Monitoring of promotion of women in each division● Realization of flexible working styles

In the activities to find childcare facilities to take care of

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

《 Hokatsu Concierge System 》

CoreCategory【Reference】
Women's share in the new graduates for main career track
who entered the Company as of April 1, 2016: 16.9% forclerical staff and 11.3% for technical staff

Group's CSR Activities

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

（2）Recruitment

CSR
VOICE

38

32

25

In accordance with ｔhe Act on Promotion of Women's
targets on recruitment of women and appointment of women

（％）
1.4

1.28

Business Outline

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

Basis for Management

Women's Empowerment

50

Utilization of Diverse Talents

disabilities and increase their employment rate, we

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

premises of Sumitomo Electric's Itami Works, specifically for

In the globalized modern society, many women holdmaintenance of ornamental plants and production of buffer

important posts including top management, especially in thematerials for packaging, Sumiden Friend has expanded its

United States and European countries. The momentum tooperations gradually to also engage in conversion ofassist women in playing more active roles is also increasing in

drawings and other paper documents into electronic files andthe Japanese society. Sumitomo Electric is committed toshredding and recycling of waste paper. We establishedenhanced recruitment of women, active promotion of female

Yokohama Branch in 2013, Tokyo Branch in 2014 and Osaka

employees and encouragement of them to keep working for

Branch in April 2015. Currently, 61 employees are working at

the Company. These efforts are aimed not only at fulfillingthe company, including 38 persons with disabilities.

established a special subsidiary, Sumiden Friend, Ltd., on theemployment of persons with disabilities in July 2008
(certified in February 2009). Beginning with loan andsocial responsibility but also at recruiting excellent humanresources regardless of gender and promoting marketing andnew businesses from a multilateral perspective.
We also introduced the Masters Program in 2005 to
reemploy experienced workers with sophisticated skills andexpertise and make use of their abilities to train younger
workers after their retirement. In the past three years,
moreover, we appointed approximately 50 people, most of
Sumiden Friend (Itami)

whom were previously working as temporary staff in sites of
Sumitomo Electric, as full-time workers based on the businessplan in consideration of their capabilities, skills, etc.

Number of Employees with Disabilities at Sumiden Friend by YearTo ensure that diverse talents can demonstrate theircapabilities regardless of nationality, race, gender, age orother background in the Group, we will continuously work to

2011

2012

2013

2014

2015

12

12

20

28

33

The disabled

2016

39
(Persons)

Employment rate as of June 15 of each year

promote training and development programs, deployment
and promotion beyond the borders of individual companies
and offer various career opportunities.

Employment Rate of the Physically or
Mentally Disabled by Year（％）
2.2

Promotion of Employment of the Persons
with Physical or Mental Disabilities

2.17

2.17

2.11

2.1
2.0

Employment rate as ofJune 15 of each year

2.01

2.02

2.00

2.05
Legallyrequired
percentage

1.91

We are making steady efforts to help create a society
where anyone can work vividly whether they
have disabilities or not
Sumitomo Electric has been traditionally working to promote
employment of persons with physical disabilities. To further
promote employment of persons with physical or mental

CSR
VOICE

1.9
1.8
1.7
0

2009

2010

2011

2012

2013

2014

2015

2016

(Year)

Special-purpose Subsidiary Group＊

We have become aware that we are members of society,and feel our growth

Shosei Kawaguchi, Jun Tanaka, Koji Nakagawa

Tokyo Branch, Sumiden Friend, Ltd.

We are working at Tokyo Branch of Sumiden Friend, Ltd. Besides maintenance of foliage
plants, we engage in the jobs requested by divisions of the Sumitomo Electric Group suchas recovery of waste paper and maintenance of meeting rooms and reception rooms. In
particular, only Tokyo Branch staff work for the setup and cleaning of meeting rooms forconferences in Sumiden Friend. We have learned the importance of communication since
we joined the company, because cheerful greetings can open communication with other people and change the atmosphere aroundus. Although we are still inexperienced in many ways, we would like to try various jobs to grow more.

Glossary ＊Special-purpose Subsidiary Group

51 CSR Report 2016

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.

Safe and Sound Workplace

We respect human rights and strive toestablish sound and lively workplaces

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

Sumitomo Electric respects human rights in its business

Sumitomo Electric believes that the development of aoperations in accordance with the purpose of the Universal

company goes hand-in-hand with the well-being of its

Declaration of Human Rights, which stipulates thatworkers' union members. On the basis of this belief,

All

Sumitomo Electric strives to address various relevant issues

More specifically, the Sumitomo Electric Group Charter ofby thorough discussion between the union and management,

Corporate Behavior, which was instituted based on theeach party respecting the other's standpoint. In particular, theSumitomo Spirit and the Sumitomo Electric Group Corporate

Central Management Council Meeting, which is held fourPrinciples in September 2005, specifies respect for humantimes a year, has a history of about 70 years, and has served

rights, professional development and establishment of safe

as a forum for exchange of opinions between representatives

and sound workplaces.

of the union and management concerning business

While constantly responding to increasing social demand asenvironments and managing conditions. While working styles

to human rights and other changes in the environment,

are increasingly diversified, we have also set up expert

Sumitomo Electric takes a wide range of measures as acommittees of various kinds to create an environment where

corporation to solve discrimination and various other human

all employees can work lively with smiles by improving

right issues, and strives to create lively workplaces where

various working systems and reinforcing monitoring functions.

Governancehuman beings are born free and equal in dignity and rights.

Business Outline

Labor-Management Relationship

Basis for Management

Respect for Human Rights in the Workplaceeach employee can work with enthusiasm.

Respect for human rights and prohibition of discrimination are

SWiTCH 17 Campaign

Sumitomo Electric has promoted company-wide campaigns《 Human Rights Training and Enlightenment 》

with the aim of ensuring that employees can achieve the

We are also making continuous efforts for human rights

proper balance between work and life. In the SWiTCH 17

training and enlightenment to solve a wide range of humanCampaign launched in fiscal 2014, which also inherits therights issues including discrimination and sexual harassment.

previous initiatives, individuals and workplaces set targets on

In the internal training, human rights have been added as a

the four categories of work style (review of the way of

subject of the SEI University training programs that are

working), healthcare (physical and mental healthcompulsory for all employees. Human rights training is also

management), communication (improvement of

included in mandatory training programs respectively forcommunication at the workplace) and self-development, andexecutives, newly promoted personnel and new employees.

work to meet the targets. Specific activities of the campaign

In 2015, the total number of participants in the humaninclude display of posters and establishment of the website torights-related seminars, including the education provided

describe the intent of the campaign and know-how for

mainly by Human Rights Task Committee members at theimplementing the activities, as well as appointment of aworksites, was 8,076.

person in charge of the promotion of SWiTCH 17 Campaign

As part of the enlightenment activities, we organize an

as a workplace leader at each division to promote thein-house contest for human rights slogans every year. The

activities at the individual and workplace levels. Outstanding

contest in 2015 received 3,754 slogans.

efforts in the workplace are introduced in in-house magazines.
To create a workplace that attracts diverse human resources
global competition in the future, it is necessary to further

reports, which is supervised by the Compliance Committee,

promote the review of working styles. We set targets for theas well as consultation services in regards of sexual

reduction of total annual working hours and theharassment and the work environment. With these services,

encouragement of employees to take paid holidays

Sumitomo Electric has in place a system to quickly gather

respectively, and strive to achieve them.

information on any violation of human rights and take

The measures are taken in line with the issues of individual

appropriate measures against them.

workplaces and persons identified based on the results of the《 Cooperation with
Human Rights Organizations and Governments 》
Sumitomo Electric participates in human rights organizations
including the Corporate Federation for Dowa and Humangovernmental agencies and other organizations, we work
toward the realization of a society in which human rights areguaranteed for all.

questionnaire survey to investigate the awareness of
employees, in order to make the workplaces more attractive.
Reduction of
total annual
working hours
Encouragementof employees
to take paid
holidays

Target for FY2017:
1,900 to 2,000 hours in a year
Target for FY2016: No employees take lessthan 10 paid holidays in a year
Target for FY2017: Average number of paid
holidays taken by an employee in a year is 15
days.

CSR Report 2016

Social Contribution

Rights Issue, Osaka. In cooperation with relevant

Survey to Create a Lively Working Environment, aEnvironmental
Preservation

and allows them to work lively, which is essential to win the

We have set up a service to provide consultation and receive

Human Resources《 Establishment of Consultation Services 》

Supply Chain

Code of Conduct, along with specific examples.

Products & Services

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

Core
Categoryclearly stated in the Sumitomo Electric Group ComplianceGroup's CSR Activities《 Compliance Code of Conduct 》

52

Sumitomo Electric Group
Health Management Declaration

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

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Average overtime
hours per month

22.6 22.1 21.0 14.2 19.1 20.5 18.6 19.3 20.4 20.8

We will further enhance our activities to realize
health management* in cooperation with
the Health Insurance Society

hours hours hours hours hours hours hours hours hours hours

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

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

2,073 2,068

2,050

2,049

2,031 2,042 2,023

2,042 2,042 2,047

2010

2013

2,000
1,950

1,965

0

2006

2007

2008

2009

2011

2012

2014

2015 (Year)(Note 1) Average among labor union members (those who belong to three Works,
Sumitomo (SEI) Electronic Wire, Inc., Osaka Head Oﬃce, Tokyo Head Oﬃce
and Chubu District Oﬃce (including those who are loan to subsidiaries))(Note 2) The data are based on the calendar year of January to December.

Implementation of the Survey toCreate a Lively Working Environment
We have added questions about dissemination andsharing of VISION 2017 for better understanding of
the current situation of each workplace
Sumitomo Electric has been conducting Survey to Create a
Lively Working Environment, a questionnaire survey toinvestigate the awareness of employees, since ﬁscal 2006. In
ﬁscal 2015 as well, about 20,000 employees were surveyed
in September and October, including those of Group
companies. Some staff of overseas Group companies werealso covered from the survey in fiscal 2015.
The scores are presented in the ﬁgure below. While thesurvey results show improvement in most items, there are still
issues to be addressed in some areas, and we will design andimplement personnel measures to respond to them. The
survey results are also fed back to the person responsible foreach organization, as well as the person and staff in charge of
the SWiTCH 17 Campaign on a workplace basis. Each
workplace specifically identifies possible problems andpromotes measures to solve them.
Results of the Survey toCreate a Lively Working Environment
3.61

Dissemination ofBusiness Spirit andCorporate Principles

3.62
Manager'sManagement

3.93

Workplace
Discipline

3.31

Workplace
Atmosphere

3.47
Devotion to Job

3.27
Motivation

3.46
Communicationin the workplace

FY 2015
FY 2014
FY 2013

3.55

Satisfaction in
Working

FY 2007Bad

2

3
5-grade scale

4

Mental Health
We are committed to management of
mental health care for employees across the Company
Sumitomo Electric is committed to dissemination of basic
knowledge regarding mental health care through distribution ofa related handbook and supply of relevant information on thecorporate website and in-house magazines. We also work to
manage mental health care for employees on a company-wide
scale by providing self-care training to encourage employees
to pay attention to any signs of their own mental healthproblems, as well as care by supervisor training for
management level employees.
We also station counselors at major operating sites, allowing
employees and their family members to consult externalcounselors from May 2008. Thus, we have set up a system thathelps us through daily communication to remain aware of
employees and their family members with mental health issues,and enables us to take early measures to address these issues. In
addition, we are working to enhance the support system to allow
all employees to have their stress levels tested. This initiative isalso aimed at responding to the amendment of the Industrial
Safety and Health Act, which makes it mandatory to offer stresscheck from December 2015. For employees who are absent oron leave due to mental health issues, we have a program toprovide step-by-step support to help them return to work, andtake measures carefully in cooperation between workplaces, HR
staff members and company doctor and other specialists.
Number of Employees Who Took Mental Health Training Course

FY 20120

The Sumitomo Electric Group cannot achieve sustainable
development or growth without the health of each employee.
The Japanese Government selected Extending the nation's
healthy life expectancy as one of the main themes in its Japan
Revitalization Strategy (Cabinet Decision in June 2013). In thestrategy, all health insurance societies are obliged to
implement a Data Health Plan with an aim to facilitate a shift
from medical care of chronic diseases to preventive care andhealth management, and companies are required to engage inthe health management of their employees actively.
While our Group had already mentioned its commitment toSafe, Sound Workplace and Employees' Growth andDevelopment in the Sumitomo Electric Group Charter ofCorporate Behavior, we also announced the Sumitomo ElectricGroup Health Management Declaration in line with the social
demand mentioned above in December 2015.
Sumitomo Electric Health Insurance Society has established theSumitomo Electric Data Health Plan with three pillars of 1)
development of health awareness by introducing an incentive
point system, 2) enhancement of specific health guidance and3) strengthening of measures to encourage employees to have
health checkups and prevent diseases from being more serious,and started the initiatives in fiscal 2015. From now on, we willfurther strengthen our efforts to enhance awareness of health(health literacy) among employees and realize healthmanagement by providing active support to the employees
who engage in health improvement activities and promoting
organized health improvement measures in cooperation with
the Health Insurance Society.

5
Good

Year

2009

2010

2011

2012

2013

2014

2015

(persons)

285

215

767

521

557

580

367

* Health management is a registered trademark of Workshop for the Management of Health on Company and Employee, an NPO.
53 CSR Report 2016

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

We provide each of the employees withvarious types of support

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

Electric is committed to promoting the work style that achieves

In April 2008, Sumitomo Electric introduced a scheme tothe proper balance between work and life and has also

reemploy employees resigning due to circumstances beyond

developed child and family-care related systems actively. For

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

these efforts, the Company has been certified by the Ministry of

the scheme, we organize interviews and reemploy eligible

Health, Labor and Welfare as a company that helps its

persons when they are able to return to work (within three

employees balance work and childcare on the basis of the Act

years or, for those who moved overseas, five years from theiron Advancement of Measures to Support Raising

resignation) and, as a general rule, assign them to their

Next-Generation Children.

former workplaces.

In fiscal 2015, we worked to improve the convenience of the《 Childcare Centers 》

center to leave their preschool children (named Hokatsu

As a measure to foster a supportive environment forConcierge ) to help the employees who have taken childcare

employees working full-time while raising children, Sumitomo

leave return to work quickly. We also

Electric opened childcare centers at its Yokohama and Osaka

introduced a teleworking system in JulyWorks in March and April 2008 respectively, and added a2016 to increase job opportunities forthird center in Itami Works in March 2009. As of March 31,

the employees subject to constraints

2016, these three centers take care of 56 children in total.

on their work at various life stages

For employees who cannot use our childcare centers, we are(pregnancy/childbirth, child rearing andtaking other supportive measures such as subsidizing their

nursing care) and thereby develop an
environment where all employees canuse of other childcare centers.
Mark Certifying
Corporate Support for
Parenting, Kurumin＊

Number of Users of the Employee Support Programs

FY

Employees who tookchildcare leave
Male

FemaleTotal

Employees who took
leave when theirspouses gave birth(persons)

Employees who used
the short-time work system
Male

FemaleTotal

Enrollment in thereemployment
systemUsers of internal
child care centers
for children

Users ofthe volunteer
holiday system

7

183

190

16

37

4

2009

4（3） 106（56） 110（59）

68

7

172

179

23

40

5

2010

3（3） 100（51） 103（54）

61

14

205

219

20

61

7

2011

2（1） 114（50） 116（51）

61

17

228

245

32

61

16

2012

12（10） 115（60） 127（70）

65

18

254

272

22

64

6

2013

15（13） 106（56） 121（69）

55

21

245

266

26

62

7

2014

16（12） 134（54） 150（66）

71

19

264

283

30

57

7

2015

29（28） 124（57） 153（85）

92

20

276

296

31

56

9

Supply Chain

44

Products & Services

3（3） 119（50） 122（53）Core
Category

2008

Group's CSR Activities

perform at their full potential.

Governancewelfare system to support employees in finding a child-careBusiness Outline

Various Support Programs
Basis for Management

Support for Balancing Work and Life

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

Human Resources

CSR
VOICE

We used the daycare center in the company
SEI Yokohama Kids

K a z u y a Masuda Optical Infrastructure Devices Group, Optical Network Devices Department, SEI Optifrontier Co., Ltd.
Tomoko Masuda HR Group, Yokohama Works

Environmental
Preservation

After return to work from childcare leave, we leave our first daughter to the daycare
center. With a cozy atmosphere with about 30 children, the center organizes various
events such as birthday parties, star festival, potato digging and Christmas parties, as wellas English and physical exercise classes. She enjoys going to the facility every day.
Its closeness to our workplaces gives us a sense of security because we can get there
quickly in case that she is sick or in other emergency situations.
It is also helpful that the center is operated according to the operation schedule and we
can therefore leave her to it even when we have to work on a weekend or a national
holiday. In addition, there are opportunities to have contact with other users at the time of
dropping and picking her up as well as excursions and sports festivals, and we are gladthat our internal network with other employees has been expanded through them. Our
second daughter will also start going to the center soon. Making use of the daycare
center, we would like to do our best for both work and child rearing.

Social Contribution

Glossary ＊Mark certifying corporate support for parenting, Kurumin
The Ministry of Health, Labor and Welfare granted this mark to Sumitomo Electric for achieving the goals set under its First Action Plan (from
April 2005) to Fifth Action Plan (to March 2015) based on the Act on Advancement of Measures to Support Rising Next-Generation Children.

CSR Report 201654

Human Resource Development
Personnel Needed by Sumitomo Electric

Record of unique training sessions organized inindividual Group companies in ﬁscal 2015
Total number ofparticipants

Total length oftraining

Personnel needed by Sumitomo Electric are defined as those

Applicable employees

who honor the Sumitomo Spirit, understand the Sumitomo

Domestic Group companies(27 companies)

13,602 persons

86,034 hours

and knowledge rooted firmly in the basics, and who can play

Overseas Group companies(73 companies)

113,650 persons

236,445 hours

active roles in the global community. We provide various training

Total

127,252 persons

322,479 hours

Electric Group Corporate Principles, possess high levels of skill

programs to support employees in becoming such personnel
based on the concepts of the individual employees' strong
motivation for self-development and on-the-job coaching andclose communication between superiors and subordinates.

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

SEI University
We work to improve the value ofhuman resources throughout the GroupSEI University represents the Sumitomo Electric Group's① Basic training on manufacturing

comprehensive training and education system. With the aim of

The underlying concept is to learn with actual machines andbecoming a Glorious Excellent Company, the entire Group is

products based on principles through all five of their senses.

developing various training programs at SEI University to

Designed to deal with the latest technologies, the curriculums

familiarize the entire Group with the Sumitomo Spirit and theare wide ranging from training on subjects essential for

Sumitomo Electric Group Corporate Principles, share the same

manufacturing, such as safety, environment, quality,

management strategies and visions and thereby nurture humanimprovement and shop-ﬂoor management, to professional

resources with competence, skills and knowledge that enable

courses on the Group's proprietary technologies andthem to demonstrate their capabilities in the international arena.

techniques and equipment control and maintenancetechnologies. These programs are systematically organized as

Fundamental Principles of SEI University

the course of the Faculty of Manufacturing Technology of the

SEI University will serve as a venue for:SEI University and provided in a planned manner. The number① 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.

of the participants is also growing every year.
Overseas, in addition to basic training on safety, quality andother subjects, we organize training on basic maintenance ofequipment with focus on safety in China and Southeast Asia ona regular basis.
Basic training on manufacturing (number of participants)

Training System of SEI University(person-days)
14,000More than 300 programs are conducted tosupport human resource development

14,236

Target: 14,100 person-days

12,00010,000At SEI University, we organize more than 300 training programsof various kinds for different types of employees ranging fromexecutives to new recruits, including position-based
compulsory training organized as Group-wide training for the

8,000
6,000
4,000

employees in speciﬁc positions or involved in speciﬁc

2,000

operations, as well as optional training available for applicants0depending on their operational needs, to support humanresource development. In addition, each division conducts

2008

2009

Aﬃliate employees

2010

2011

2012

2013

2014

2015 (Fiscal year)

Sumitomo Electric employees

divisional training to learn necessary skills and knowledge for② Practical training

the individuals along with daily on-the-job training (OJT)

We develop two types of practical professional training aimed at

centering on management by objectives.

cultivating key personnel who are anticipated to drive

In particular, (1) Sumitomo Spirit, Corporate Principles and CSR,

manufacturing innovation and reinforce SEQCDD＊ improvement,(2) Management policies and visions, (3) Compliance, (4)namely MKP (Monozukuri Kakushin Pro Jissen Dojo

Safety, environment and quality and (5) Diversity are selected(manufacturing innovation professionals' workshop)) and GKP

as the five basic subjects of the compulsory training for all
employees. E-learning, video lectures and other tools are also
used to disseminate this training on a global scale.

professionals' workshop)). In this training, actual important
challenges of the respective divisions are selected as the themes,
and participants perform practical activities to solve them. Since

Record of the training sessions organized acrossthe Sumitomo Electric Group in ﬁscal 2015

the start in 2009, a total of 466 participants have performed

Applicable employees

Total number ofparticipants

Total length oftraining

Sumitomo Electric employees

39,433 persons

292,179 hours

Employees ofGroup companies in Japan

16,481 persons

68,038 hours

Employees ofoverseas Group companies

8,201 persons

32,026 hours

64,115 persons

392,243 hours

Total(Genba Kaizen Pro Jissen Dojo (on-site improvement

practical activities on 346 important themes, which contribute tohuman resource development and problem solution.
③ Small-group activities
Sumitomo Electric develops and promotes small-group activities
performed to solve problems and achieve objectives voluntarily
on a workplace basis with the aims of developing human

Glossary ＊ SEQCDD

55 CSR Report 2016

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

resources and energizing the workplace. This initiative, launched

potentials. Thus, we are actively committed to a wide range ofin 1958, has been also introduced into overseas companies andtraining programs for the promotion of diversity.

expanded to involve a total of 36 thousand participants across

We are working to further enhance the contents and operationof these three types of education in reference to manufacturing
strengthening activities while introducing the ideas of theoperating divisions and considering requests from the divisionsof the participants.

Addressing Globalization across the GroupWe develop training activities globally across the GroupWe organize global training programs such as the executive
training program, in which executives of Group companies
worldwide are invited to Japan, and the Global Leadership

Basis for Management

the Group in working on 2,923 themes.

Development Program (GLP), which is a training program to
invite general managers to Japan. In these programs,

We are committed to improvement ofteam management capabilities

actively develop other global training programs, including theManagerial personnel receive position-based training on
communication to achieve the targets for the teams andappointed line leaders are provided with training on labor
management and employee performance evaluation. We thus
make continuous efforts to improve the management
capabilities of employees.
In fiscal 2015, we introduced two new training programs to
improve team management capabilities, in which members ofthe management take time to exchange opinions with each
To ensure that teams make achievements, it is necessary to
promote diversity and allow each of the team members todisplay their abilities. To this end, we have incorporated
diversity education into the curriculums of all training programs

Sumitomo Electric Group Management Program based on the
Sumitomo Spirit (MPSS) to disseminate the Sumitomo Spirit
among management personnel who play pivotal roles in therespective companies and improve their skills to manage theirsubordinates. This training program is provided twice every
year in each of Europe, China, Southeast Asia and the UnitedStates.
We have also established the Human Resources Development
Committees on a country basis (China, Indonesia, Malaysia,
Thailand and the United States) to promote training programs
that meet local needs. Each committee works to promotevarious human resource development measures under theleadership of local HR managers of the companies and persons
in charge of human resource development in the regional
companies that provide operational assistance.
Training programs commonly developed worldwide

for newly promoted personnel to make them aware of theimportance. In addition, to support women in playing more
active roles, we organize a training program in which thereceive advice from senior female workers about work and life
after return to work, as well as a self-rediscovery training forexperienced female employees to reexamine their abilities andGeneral Manager

Global Leadership Development Program (GLP)

ManagerManagement Program based on
the Sumitomo Spirit (MPSS)

Staﬀ

ITP＊ (5 basic subjects, business skills)

Products & Services

CSR
VOICE

Examples of training programs

Executive training program (Action Learning)
Core
Category

employees on maternity leave who will return to work soon

Position

Executive

I participated in the GLP in 2015
Angsana Phummee Deputy Manager of Electronics Department, Sumitomo Electric (Thailand) Limited

Social Contribution

I participated in MPSS held in Chicago last year, which was a good experience for me to learn the history of theSumitomo Electric Group as well as the Sumitomo Spirit. As English is not my mother tongue, I was not able tounderstand all of the contents. Nevertheless, explanations were clear, and the overall structure also helped meunderstand them. I also developed relations with participants from other Group companies.
In the training program, I received many materials that would be also very useful for my daily duties. The program
consisted of two workshops. After learning the Sumitomo Spirit in Workshop 1, the participants were required to practice it in theirworkplaces during the three-month interval as homework. In Workshop 2, we presented what we actually did during the period toeach other. I still remember the principles of the Sumitomo Spirit, which values doing your sincere best, not only in business but alsoin every aspect of your life, placing importance on integrity and not acting rashly or carelessly in pursuit of easy gains, even after
completion of the training. The basic concept of the Sumitomo Spirit is applicable to the private life in addition to the work. I consider
that learning of the Sumitomo Spirit has improved my communication and relationship with people around me.

Environmental
Preservation

Lilia Gutierrez Accounting Manager, Sumitomo Electric HardMetal de Mexico. S.A. de C.V.

Human Resources

What I thought when I participated in MPSS

Supply Chain

I am grateful that I had an opportunity to participate in the Global Leadership Development Program for fiscal
2015. Through this program, I improved my understanding of Sumitomo's history, the Sumitomo Spirit,
management strategies, compliance, etc. The team discussion about the promotion of diversity also made me
reaffirm the importance of taking care of each employee.
I believe that diversity is not an impediment but an opportunity to accept differences in nationality, culture,
language, gender, etc. with an open mind. In this program, employees working in Group companies around the world gather in Japan.
As different participants had different ideas, we had to cooperate with each other. This experience has made me realize that it isimportant to become not only a good leader but also a follower. In addition to diversification within a company, the external businessenvironment, such as suppliers, customers and competitors, is also being diversified. It is necessary to keep an eye on it, properly
understand and analyze the situation and steadily meet the demand. As to diversity, I will not only act on proper understanding of it
but also try to address it completely with the greatest care.

CSR
VOICE

Group's CSR Activities

other and share findings, on a trial basis.

also aim to develop a sense of unity as a group. In addition, weGovernancefacilitate the growth of their subordinates, while newly

participants learn from each other through workshops, which

Business Outline

Improvement of Management Capabilities
and Promotion of Diversity

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

CSR Report 201656

To Become a Company with the Highest Level of Safety
Basic Approaches
The Sumitomo Electric Group considers that securing of《 Promotion of Structural Reinforcement on a Company-wide Scale 》●

Dissemination and application of safety global standards●

health and safety of employees is the basis of the business.
We promote the establishment of culture to prioritize safety●

above all else and continuously perform safety and healthactivities involving all employees to eliminate risk factors fromour workplaces, as well as to become a company with thehighest level of safety. Specifically, we have set medium- to●

Development and training of human resources in Japan and overseas●

Strengthening of position-based education and KKP＊●

Development of local safety key personnel

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

long-term Sumitomo Electric Group Safety and Health●

Targets. To meet the targets, we specify priority activities and●priority subjects for each fiscal year at the Health and Safety

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

Improvement of the structure to ensure that injury does not occur
Early improvement through the speciﬁcation of activities
subject to priority management (yellow card)

Committee, which is composed of members frommanagement and the union.

Examples of Activities to Prevent Serious Accidents

Sumitomo Electric Group Safety and Health Targets

Forklift safety measures

1．Realizing accident-free worksites andcreating comfortable working environments(Forklift safety education at Itami Works)

2．Maintaining and improving compliance■ Education for pedestrians

3．Promoting employees' physical and mental health care

Activity targets for ﬁscal 2015●

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

No. of no lost work time injuries and minor injuries: 20 or lessPriority subjects for ﬁscal 2015

(classroom lecture: 1 hour)
This lecture was given to all pedestrians working in theWorks, including Sumitomo Electric employees (except
forklift operators), temporary staff, contract workers
and interested persons of subcontracting companies.
Characteristics of forklifts and disaster risks wereexplained and visually presented with videos. The
number of participants was 2,710.

Safety activities involving human lives withparticipation of all employees under the initiativeof top management《 Reinforcement of fundamentals in each division 》●●

Strong leadership by top management
Establishment of activities involving all employees① Strengthening of the 1-2-3 activities② Activities to prevent serious accidents
Identiﬁcation of hazard sources through inspection, andimplementation of countermeasures●③ Safety! Power OFF Activity
Identiﬁcation of the operations in which the power
cannot be turned oﬀ, and implementation ofcountermeasures (with priority given to hardware)●④ Activities for ensuring safety in multi-worker operations⑤ Prevent recurrence of similar accidents
Completion of measures to prevent recurrence ofaccidents involving injury in the respective divisions●

Horizontal diﬀusion of measures to prevent accidents
involving injury into other divisions●⑥ Encouragement of employees to do radio gymnastic exercises《 Strengthening of Weak Points on a Company-wide Scale 》●

Global safety evaluation
Identiﬁcation of weak points in safety management andsafety activities and support of their improvement●●(classroom lecture and practical training: 5 hours)
This education was provided to all people who operate
forklifts in the Works, including Sumitomo Electric
employees, temporary staff, contract workers andinterested persons of subcontracting companies. The
classroom lecture was given as to the characteristics offorklifts, how to operate a forklift, maintenance andinspection, examples of disasters, inspection method,
relevant laws and other subjects. In addition, a test was
conducted on a course prepared in the Works for theevaluation of practical skills. Only those who passed thetest can operate a forklift in the Works. The number ofoperators who completed the course was 538.

Promotion of activities to prevent unsafe actions
Prevention of unsafe actions by considering thepsychology of employees as well based on KK mapping●●■ Education for forklift operators

Plant disaster prevention activities
Inspection of special material gas and combustible gas
facilities, electrical devices and outdoor utilities to
identify any problems and assess the degree ofobsolescence●●

Safety measures for construction work and operation at height●

Development of safety measures for supervision of work●

Cultivation of construction representatives and managers

Glossary ＊Kiban Kyoka (reinforcement of fundamentals) Training Program (KKP)

57 CSR Report 2016

Practical training on health and safety, quality and manufacturing(two- or three-day course)Safety Performance and Future Actions

Accidents involving injuries
TemporarySub
worker,total
subcontractor
Japan Overseas
Fiscal 2015
Fiscal 2014

Accidents resulting
in lost work time
No lost work
time injuries

5

3

0

8

1

3

12

11

7

3

21

1

7

29

Minor injuries

5

8

0

13

3

18

34

Total

21

18

3

42

5

28

75

Accidents resulting
in lost work time
No lost work
time injuries

7

3

5

15

0

1

16

10

6

2

18

Minor injuries

7

4

2

13

0

7

38

Total

24

13

9

46

0

8

54

(Note 1) From ﬁscal 2015, accidents involving injury in Sumitomo Wiring Systems, Ltd. (SWS)
are not included in the number of those in the Sumitomo Electric Group.
(Note 2) The data on employees of the Sumitomo Electric Group cover Sumitomo Electric andits aﬃliates (excluding the listed companies), as well as the companies that are notaﬃliates of Sumitomo Electric but subject to occupational health and safety-related
guidance and supervision by Sumitomo Electric. Employees of the SWS Group coverthose of SWS and its aﬃliates.
(Note 3) The category of minor injuries was added as a result of the revision of injury
categories in the SWS Group.

Governance

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

2

1.9

1.83

1.8

1.62 1.61 1.62 1.59 1.58 1.66 1.61

1.5
11.02 1.09 1.12 0.99 0.98 1.05 1.00 0.94 1.06 1.06

0.5

0.33

0.16 0.10

0

0.08

0

0

0.06

0.20 0.14

000.08 0.14

0.03
00.19 0.14
00.07

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

All industries

Manufacturing industry

Sumitomo Electric GroupSWS(Note) The frequency rate of injuries with lost days for employees in Japan in the Sumitomo
Electric Group covers employees of Sumitomo Electric and its aﬃliates in Japan, andthe frequency rate in SWS covers the employees of SWS.

Core
Category

We achieved zero accident for two straight years

Group's CSR Activities

0

Business Outline

CSR
VOICE

Total

Japan Overseas

Basis for Management

During ﬁscal 2015, we had 42 accidents involving injury intotal, which were broken down into 8 injuries resulting in lostwork time, 21 no lost work time injuries and 13 minor injuries(excluding employees of the Sumitomo Wiring Systems Group),
and thus failed to meet the target of zero injuries resulting inlost work time and 20 or less no lost work time injuries orminor injuries. Nevertheless, accidents involving serious injury
fell substantially with a year-on-year decrease of the total
number by 4 and, in particular, a year-on-year decrease of thenumber of injuries resulting in lost work by 7. We believe that
this is a result of the four priority safety activities promoted infiscal 2015, which were 1) Activities to prevent serious
accidents, 2) Safety! Power OFF Activity , 3) Activities for
ensuring safety in multi-worker operations and 4) Prevent
recurrence of similar accidents.
Looking at the injuries by situation, while the promotion of thepriority safety activities had certain effect, injury by inserting ahand into moving parts still occurred, and both injury by fall
and injury of staff increased. This indicates that safety activities
have not been implemented by all employees and themeasures have not been completed.
In fiscal 2016, based on the results in fiscal 2015, we aremaking efforts to achieve a more realistic target of zero injuries
resulting in lost work time and 30 or less no lost work time
injuries or minor injuries, as part of our activities to become acompany with the highest level of safety, as set in VISION
2017. Specifically, we will continue the above-mentioned fourpriority safety measures implemented in fiscal 2015 to ensurethat the activities take root.

Employees of
the aﬃliates of
the SWS Group

Sumitomo ElectricGroup employees

In fiscal 2015, the number of the accidents involving
injury decreased slightly from fiscal 2014

Ryuichi Yoshikawa General Manager of Manufacturing Department, Sumitomo Electric Toyama Co., Ltd.

As a result of the promotion of safety activities with the involvement of all workers in a real sense by spending much time and labor throughuncompromising efforts based on the President's policy, we realized zero accident for two straight years in fiscal 2014 and fiscal 2015. In fiscal
2016, we will complete the unfinished measures and transform the safety awareness developed through the safety activities into capabilities topoint out any problems for each other in our continuous safety activities to establish a workplace where no injury occurs or can occur.

Social Contribution④ Improvement of the production system: There were three challenges of (1) complicated flow lines of forklifts, (2) response to constant demandfor quick delivery and (3) poor workability in a narrow layout area. To solve them, we respectively (1) shortened the flow lines of forklifts by halfthrough the improvement of the layout using an automatic forklift flow line analyzer, (2) cut the production lead time to one-third by using the
fast-in, fast-out (FIFO) diagram management and (3) increased the space with the reduction of work-in-progress and product inventory to
two-thirds by decreasing the lead time and adhering to the FIFO method. Through these achievements, we created a more pleasant workplace.

Environmental
Preservation③ Strengthening of hardware-based measures: With an aim to eliminate high risk operations and unsafe conditions, we took hardware-based
measures to address troublesome operations that are difficult to improve, under the initiative of technical and design staff divisions. (A total of
200 measures were taken in the entire company.)

Human Resources② Upward spiral of leadership: We took various measures to promote an upward spiral of leadership of General Manager of Manufacturing
Department, plant managers, safety managers, section chiefs/deputy section chiefs and group leaders. The measures included on-site
inspection by general managers of manufacturing departments and plant managers with focus on specific themes, forklift and cranecompetition organized by safety managers, inspection by section chiefs/deputy section chiefs to ensure compliance with work standards
and site inspection by group leaders to have dialogues and find causes of problems. Through these measures, we enhanced
communication with workers and established a more open workplace.

Supply Chain① Improvement of safety awareness: Under the concept that each person is the main player in safety activities, we held a safety meeting for
30 minutes every morning. A test was conducted to evaluate the level of understanding on safety among the workers in a Q&A style, and oneof them presided to ensure that the safety meeting was organized voluntarily. As a result, safety awareness among the workers was improved
dramatically. We also organized a session to study good examples of kaizen (improvement) of the Sumitomo Electric Group to help workers
enhance their own improvement capabilities. In the session, all workers provided ideas for the improvement of safety status of the workplaceand implemented the PDCA cycle by themselves to identify and improve unsafe conditions and unsafe actions more quickly.

Products & Services

Everyone, goanzen ni (safety first)! Sumitomo Electric Toyama manufactures aluminum wires, aluminumalloy wires for mechanical and electronic parts and lead wires for electronic parts, as well as porous
nickel CelmetTM, which is used in electrodes of secondary batteries, etc. In our safety records,
accidents involving injury occurred for three consecutive years from fiscal 2011. With recognition that
our safety performance was in a critical state, we promoted safety activities to achieve the target of no
accident in a year in line with the President's policy of achieving zero accident based on uncompromising
Morning safety meeting
efforts under the guidance of Safety & Environment Department, Plant Engineering Department andAdvanced Production Systems Engineering Department of Sumitomo Electric. Specifically, we performed safety activities with the following four
items as the main pillars, aiming to involve all workers in a real sense and take both top-down and bottom-up approaches at all positions.

Glossary ＊Frequency rate

Number of deaths and injuries caused by industrial accidents per million working
hours. Used to express accident frequency. The formula is: Number of deaths
and injuries caused by industrial accidents / Total working hours x 1,000,000.

CSR Report 201658

〈 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 topromotion of energy saving activities and can also bring aboutbusiness opportunities. We are committed to development andimprovement of energy saving initiatives at domestic andoverseas establishments, as well as reduction of overall
environmental impact of products throughout their lifecycle.

◉ Develop the Action ECO-21 campaign based on
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

We will accumulate a lot of energy saving activities, even if each ofthem is small, to make a great achievement
Minoru Habu

Qualified Energy Manager, Safety & Environment Group, Manufacturing Department, Sumitomo Electric Tochigi, Co., Ltd.

Sumitomo Electric Tochigi, Co., Ltd. consumes a large amount of electricity and is one of the top
ﬁve domestic companies in the Sumitomo Electric Group in terms of power use. Therefore, wehave traditionally been committed to energy saving eﬀorts in a serious manner. I have been in
charge of equipment technology and safety environment for 20 years. I walk around the
production site for energy saving and identify any wasteful use of energy. We are making
continuous eﬀorts to take as many energy saving measures as possible, such as repair of each air
or steam leakage, optimization of the pump capacity and introduction of energy saving pumps,
because even if the eﬀect of each measure may be small, the accumulation of them can lead to agreat achievement.
While promoting these eﬀorts, we have also introduced new technologies to reduce the amountof waste, including a device to recycle waste sulfuric acid, and enhanced separation activities toobtain valuables and recycle waste. Our environmental activities contribute to the reduction ofenvironmental impact of the Sumitomo Electric Group as a whole. Each of the employees willcontinue energy saving activities with a high awareness.

Environmental Management
Environmental Policy
The Sumitomo Electric Group has developed its environmental
policy based on its business philosophy, which forms the basis
for its business management. The environmental policy,
detailed below, places the highest managerial priority on
activities related to preservation of the global environment.

Environmental Policy (extract)※

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

Basic Philosophy
The Sumitomo Electric Group thinks it is primarily important toestablish a society that is sustainable and has less environmental
impact, and contributes to society by providing products and services.

President
Corporate Environment Committee

Action Guidelines
1. Considering environmental preservation activity is one of the mostimportant issues for corporative management, the Sumitomo
Electric Group promotes the activity based on its action plan.
●

Reduce environmental impacts in manufacturing activities
Prevention of global warming, saving and recycling ofresources and prevention of environmental pollution●

Increase environmentally-conscious products and services
Phase out of harmful substances, and implementation of
product assessment and product LCA＊

2. The Group will fulﬁll and enforce environmental management system.
● Provision of educational programs on environmental
preservation and implementation of environmental audits
3. The Sumitomo Electric Group will maintain and improve
compliance action.
4. The Sumitomo Electric Group's Environmental Policy will be
opened to the public upon request.

Environment Task Committees
Business Unit Environment
Committees

Works Environment Committees

Divisions

Divisions

Domestic aﬃliates
located inside Works

Domestic aﬃliates
located inside Works

Domestic aﬃliates
located outside Works

Domestic aﬃliates
located outside Works

Overseas aﬃliates

Overseas aﬃliates

Glossary ＊Product Life Cycle Assessment (LCA)

59 CSR Report 2016

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

Internal Environment
Audit TeamsWeb※ See our website for details.

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

Response to Environmental Risks and Opportunities through Environmental Management

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

Opportunities and speciﬁc activities

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

Chemical contamination

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

Global warming

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

Waste reduction /resource saving

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

Chemical substancesin products

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

Environmentallyconscious products

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

Governance

Emission of pollutants

Business Outline

Compliance violation

Detailed environmental audits are conducted in all sites and aﬃliates in Japan and overseas to identify any events that can
result in violation of environmental laws and to take measures to address them.

Basis for Management

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.

Action ECO-21 Campaign

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

Descriptions

Evaluation

Reduce 5% from FY 2012

Reduce 3% from FY 2012

Reduced 25%◎（1）CO2 emissions (in Japan and overseas):
reduction of the absolute amount●●

Reduce 5% from FY 2012

Reduce 3% from FY 2012

Reduced 2,7%△●

Reduce 20% from FY 2012

Reduce 12% from FY 2012
(4% per annum; reduce 20% in 5 years)

Reduced 26%

◎

●

●

Reduce 5% from FY 2012

Reduce 3% from FY 2012

Reduced 20%◎（4）
Reduction of CO2 in logistics:
reduction of CO2 per unit of sales●―

Reduce 5% from FY 2012

Reduce 3% from FY 2012

6.7%

◎

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

0.3% or less

0.3% or less

0.1%

◎

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

9% or less※

5% or less

8.7%

△

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

Reduce 5% from FY 2012

Reduce 3% from FY 2012

Reduced 11.9%◎

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

Reduce 5% from FY 2012

Reduce 3% from FY 2012

Reduced 24.0%

◎

●

―

Reduce 5% from FY 2012

Reduce 3% from FY 2012

Reduced 16.1%

◎

●

●

Ensure compliance with laws in Japan and overseas

No issues○（1）Eco Mind products●―

Register 100% of new products

１００％

○

（2）
Eco-products●―

60% of the ratio in sales(in Japan)

50% of the ratio in sales(in Japan)

53％

○

―

Contribute to reducing CO2 emissions
by 100 thousand tons/year

Contribute to reducing CO2 emissions
by 75 thousand tons/year

78 thousand
tons/year○

reduction of the absolute amount of
PRTR-designated substances（3）
Products with less CO2 emissions●

Legend ◎：Performance far exceeding the target (by more than about 150%); ○：Target achieved; △：Target not achieved (performance improved from the previous ﬁscal year); ▽：Target not achieved(performance similar to that in the previous ﬁscal year); ▼：Target not achieved (performance deteriorating from the previous ﬁscal year)

Monitoring Based on Environmental Efficiency
In fiscal 2015, environmental efficiency was
improved by 25% from the ﬁscal 2012 level＝Monetary value of environmental impacts (CO2, wastes, harmful substances, NOx and SOx) / Sales
Environmental eﬃciency（×10−4）

16

16.02
13.28

12

15.20
11.98

12.09

2014 Result2015 Result

8402012 Base2013 Result2017 Target (Fiscal year)(Note) Data on CO2 emissions and wastes are collected from Group companies in Japan andoverseas while those on harmful substances, NOx and SOx are from Group companies
in Japan only.

Social Contribution

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

Environmental Eﬃciency

Environmental
Preservation* We reviewed the target overseas zero emission rate for ﬁscal 2017 in ﬁscal 2016, and replaced the original target of 5% or less by 9% or less in consideration of the situation that we are increasing businessactivities in the countries where the recycling system has not been developed.

Human Resources●

Energy saving (oﬃces): reduction of energy（3）
consumption per unit of sales[Consumption in crude oil equivalent / ﬂoor area]

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

Supply Chain

Reduction of environmental impacts frombusiness activities

Fiscal 2015
results

Products & Services

Reduction ofenvironmental impact
from products

Targets for ﬁscal 2015●

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

Expansion ofenvironmentallyconscious
product range

Targets for ﬁscal 2017●

Reduction of substances of （1）Release of chemical substances (in Japan):environmental concern

inoverJapan seasCore
Category

Promotion of
resource
conservation
and recycling

Period: Fiscal 2015 ‒ 2017

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

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

Global warming
prevention●

boundary

Group's CSR Activities

The Sumitomo Electric Group has conducted the Action ECO-21 Campaign since April 2003. The E in the Action ECO-21
Campaign stands for environmental engineering, C for environmental communication and O for originality. We are promoting
to develop the Action ECO-21 (Phase Ⅵ) Campaign as a three-year plan from fiscal 2015.

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

CSR Report 201660

Education and Training

In fiscal 2015 as well, we provided systematic education on

We provide systematic education programs on
environmental conservation

control and global warming as part of the position-based

To realize environmental management, the Sumitomo Electricsessions during the fiscal year.

general environmental issues, environmental laws, chemical
training program. A total of 710 employees participated in 43

Group works to enhance every employee's environmental
awareness and knowledge. We provide all employees witheducation on the history of measures to protect the global
environment as well as the Group's environmental policy andthe Action ECO-21 Campaign. In fiscal 2014, we also started
inspection of environmental facilities to enhance sensibility inenvironmental management.
Training system

Legal andcompliance education

Generaltraining
Sectoraleducation

Environmental awareness education

ISO 14001. In addition, to ensure compliance with relevant

Sumitomo Electric Group's
environmental activities

laws and reduce even more environmental impact, we have

Education on environmental laws

conducted environmental audits with a focus on compliance

Education on legal issues

with environment-related laws and the efforts in the Action

ISO 14001 internal auditor education

EnergysavingEducation on energy saving methods andthe improvement

Eco-Life
Activities

Sumitomo Electric Group Eco-Life Activities

We are now planning to start the second round of the audits

Waste

Waste separation and treatment

in fiscal 2016.

Management of harmful
substances contained in products

Environmental audits of manufacturing sites outside Japan

Management of poisonous anddeleterious substanceswere also started in fiscal 2010. As of the end of fiscal 2015,

Position-based General environmental
trainingand sectoral training
Sectoraleducation

The Sumitomo Electric Group implements audits based on

Title of the training

ISO14001

Chemical
substances

On-sitetraining

We implement audits of overseas sites, as well assites in Japan, according to the environmental laws
in the countries and regions where they are located《 Audit Implementation Plan and Its Progress 》

Training menu
General environmental
education

Global Environmental Audits

Environmental laws, chemical control,
energy saving

ECO-21 Campaign since fiscal 2008, and finished the auditsof all manufacturing sites in Japan by the end of fiscal 2011.

we have completed 44 of the 46 sites subject to audits:
Following the audits of 11 sites in China in fiscal 2010, we

EnergysavingEducation on energy saving methods
and the improvement

conducted audits of four sites in Thailand and four sites in

OthersOther education

Malaysia in fiscal 2011, of three sites in China and four sites inIndonesia in fiscal 2012 and of three sites in China, two sites

Environmental Accounting

Financial items
Investment

Expense

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

Since our CSR Report 2010, we have collected and2013 2014 2015 2013 2014 2015 2013 2014 2015

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
2,717 1,918 2,036

534

639

608

(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 2014 from the boundaries of collection newly added or
excluded in ﬁscal 2015 (no boundaries were newly added or
excluded in this ﬁscal year).
Change due to sales change: [Emissions or amount of waste inﬁscal 2014 from the boundaries of collection for ﬁscal 2015] x(Sales in ﬁscal 2015 / Sales in ﬁscal 2014 - 1)

Investment inresource saving
and recycling

Waste
disposal cost

(Note 2)

Sale ofvaluables materials(Note 3)(Note 3)

Waste
reduction
23

10

210

983

1,080 1,037

107

89

Actual change: Calculated by subtraction

Cost ofmanagement activities

1,157 1,049 1,097

Cost ofsocial activities

6

14

7

Cost of environmental
remediation

8

9

8

Glossary ＊Connected Reporting Framework (CRF)

61 CSR Report 2016

A reporting scheme developed in the U.K. that integrates ﬁnancial andnon-ﬁnancial information in the disclosure.

104

《 Evaluation of Facilities That May Affect Water Quality 》

Taiwan in fiscal 2013, of three sites in the United States in

In response to a revision of the Water Pollution Control Act infiscal 2014, as well as the audits of two sites in the United

2012, we started the evaluation of facilities that use any ofStates, three sites in Germany and one site in Hungary in fiscal

the hazardous substances, designated substances, oils, etc.

2015. In fiscal 2016, we have scheduled to audit two sites inand may thereby affect water quality. The equipment andthe United States as well as three sites in Thailand and one

ancillary facilities are inspected to assess the managementsite in Vietnam, which has recently joined the Group.

status on the check items set for each of the parts such as

In Japan, we conduct audits in compliance with 120 items ofliquid storage and pipes.

《 Check of the Progress in the
Activities of the Action ECO-21 Campaign 》

of the prefectures and municipalities where the sites arelocated. Overseas as well, we survey environmental andWe have set 58 check items for our sites in Japan and 42

related laws in the countries and regions where our bases

items for our overseas sites to audit their activities andare located and conduct audits in accordance with them.

progress.

Business Outline

23 environmental and related laws as well as the ordinances

Basis for Managementin the Philippines, two sites in Vietnam and two sites in《 Conﬁrmation of Legal Compliance 》
In fiscal 2015, the following three violations of laws andto pay fine was issued by the authority) were reported to the
Audit work in Germany

Safety & Environment Department of Sumitomo Electric.

Audit work in Hungary

An affiliate in Mexico received an order from the authority to

For our domestic sites, to prevent environmental accidents,

pay a fine for excess of the regulatory value on effluent in

we launched the evaluation of facilities that may affectAugust 2015. Another affiliate in Taiwan received an order

effluent quality in fiscal 2012, and evaluated nine sites in fiscalfrom the authority to pay a fine for insufficient paperwork for

2012, 11 sites in fiscal 2013, six sites in fiscal 2014 and seven

Another affiliate in Mexico received an order from thefacilities in fiscal 2013, and evaluated seven sites in fiscal

authority to pay a fine for insufficient report on waste in2013, seven sites in fiscal 2014 and one site in fiscal 2015. In

January 2016. We will continue to make efforts to ensure

fiscal 2016, we will complete the evaluation of facilities incompliance.

Japan and continue the evaluation of overseas sites.

0
900
750

3.3

Reduction rate (%)
0

5.3

7.2

3

787 761 744
730

5
10

750

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

92
744

0

set as the target. To achieve it, we aim to reduce energy

730

consumption per unit of sales by 20% from ﬁscal 2012

▲106
600

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

450saving eﬀorts in this ﬁscal year as well. These activities are300

also important for the reduction of energy cost, which has

450
300
150
0

been rising steeply in recent years.

150

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

year)

0

GHG emissions

2014 Change due Change due Actual
to boundaries
changeEmission reduction rate(from the ﬁscal 2012 level)

50

0

40

34.1

30

9.4

3

4.7
11.9

30.9 32.5 30.1

year)changeAmount of waste (excluding valuable materials)(thousand tons/year)(Note 4)rate (%)

0
5
10
15

we are promoting conversion of waste into valuable
40

32.5

0

4

materials. The main investment during this ﬁscal year was

30.1

made in waste liquid treatment facilities, which enabled▲6.4

to render the two types of waste liquid harmless and10

thereby reduce the amount of waste.

2012 2013 2014 2015 Target (Fiscal

year)

Amount of waste02014 Change due Change due Actual

Waste reduction rate (from the ﬁscal 2012 level)

to boundaries
changeto saleschangechange2015(Fiscalyear)

We will continue our commitment to concentration ofwaste liquid as a method to reduce the amount of waste.
ISO 14001 is the core of our environmental management
activities, and the certiﬁcation is requested by customers.

Cleanup of areas outside company sites,
external environmental education, etc.

We consider cleanup of the neighboring areas as a basic social activity,
and will continue our commitment to communication with local
communities through this initiative.

Restoration of contaminated soil and groundwater

We continuously restore the contaminated soil andgroundwater identiﬁed in our facilities.

CSR Report 2016

Social Contribution

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

Environmental
Preservation

neutralization of acid waste liquid with alkali waste liquid

20

10
0

We set the reduction of 3% from the ﬁscal 2012 level as
the target for ﬁscal 2015. To reduce the amount of waste,

50

30

20

introduced into overseas Group companies.
Human Resources

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

to saleschange2015 (Fiscal

Supply Chain

600(Note 4)GHG emissions(thousand tons-CO2e/year)
900

Strategy/opportunity and risk

Products & Services

GHG emissions(thousand tons-CO2e/year)

Change factors in ﬁscal 2015 (in Japan)Core
Category

Non-ﬁnancial items

Group's CSR Activities

a facility management notification in September 2015.

sites in fiscal 2015. We also started the evaluation of overseas

Performance (in Japan)

Governanceregulations (cases where guidance, recommendation or order62

Materials Flow (Environmental Impacts)

I N PUTOUTPUT
DesignMaterials
Copper ※Greenhouse gas emissions

292 thousand tons

CO2

Iron

288 thousand tons

Other gases

Aluminum

21 thousand tons

Resin

102 thousand tons

Air pollutant emissions

EnergyNOX ＊540 tons

SOX ＊98 tons

Chemical substance emissions
2,124 million kWh

LPG

8 thousand tons

City gas

Into the air ＊Manufacture(converted into crude oil equivalent)

Wastes (excluding valuable materials)
General wastes

15 thousand tons

Industrial wastes

55 thousand tons

Recyclable materials

62 thousand tons

Wastewater●●

14 thousand kl

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

Chemical substances : Substances speciﬁed in the PRTR
Law and equivalent laws in other countries●

Electricity : Purchased from electric power companies●

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

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

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

Transportation fuel : Gasoline, gas oil etc.

10,840 thousand m3

Products

Product shipments

452 thousand tons

Logistics

CO2 emissions ＊36 thousand tons

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

138 tons

17 thousand kl

12,665 thousand m3(converted into crude oil equivalent)＊

3 tonsAs industrial waste ＊Product packaging materials
67 thousand tons

Transportation fuel58 tons

Into the water ＊44 million m3

Other fuels

Water

26 thousand tons

(converted into CO2)

Chemical substances ＊ 15 thousand tons

Electricity

1,404 thousand tons

Use●

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

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

NOx : Nitrogen oxides emitted from the use of gas andliquid 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 businessactivities●

Industrial wastes : Wastes speciﬁed in the "Waste
Management and Public Cleansing Law," including sludge,
waste oils, waste acids/alkalis, waste plastics, metals,
glass, ceramics, cinders and other substances generated
through business activities●

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

Items with ＊: Sumitomo Electric + domestic aﬃliates; Items without ＊: Sumitomo Electric + domestic and overseas aﬃliates※In the Environment and Energy Group, which is included in the boundary of data collection, only data on the amount of the materials purchased by
the Procurement Division of Sumitomo Electric alone are covered.

Explanation of the Boundary
In promotion of environmental management, Sumitomo Riko Company Limited, Nissin Electric Co., Ltd. and Sumitomo Densetsu Co., Ltd., which
are listed in the stock exchange in Japan, and their consolidated companies are excluded from the boundaries of the environmental
management of the Sumitomo Electric Group although these companies are included in the boundaries of consolidation for financial reporting.
When the comprehensiveness of the boundaries is assessed based on greenhouse gas (GHG) emissions, a representative environmental
indicator, the emissions from the boundaries of the environmental management of our Group, 1,430 thousand tons, account for the vast
majority of 1,600 thousand tons, which are estimated GHG emissions from the boundaries of consolidation for financial reporting in fiscal 2015.
In the meantime, out of the 255 consolidated subsidiaries excluding the 3 listed companies mentioned above , the environmental managementof our Group covers 145 companies in production units (45 in Japan, 31 in China, 33 in Asia (except China), 14 in the Americas and 22 inEurope and other in fiscal 2015). Our trial calculation indicates that environmental impact, such as GHG emissions, of the 145 companies is
estimated to occupy 99% of that of the 255 subsidiaries.

63 CSR Report 2016

Activities to Prevent Global Warming

We reduced CO2 emissions both in Japan and overseas
In the Action ECO-21 (Phase Ⅵ) Campaign, the Sumitomo

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

1,600

49

3

1,456

Electric Group set the targets of reducing GHG emissions by 3%
from the fiscal 2012 level in fiscal 2015, and promoted various

Basis for Management

Reduction of Greenhouse Gas Emissions

1,430

1,400

▲78

prevent global warming.

1,200

As a result, we reduced GHG emissions both in Japan and0overseas in fiscal 2015 from the previous fiscal year, and the2014

emissions in the whole Group were reduced by 2.7% from thefiscal 2012 level.
This is an outcome of steady development of energy saving
efforts promoted actively throughout the Group under the

Change due toboundaries
changeChange due tosales change

2015

Actualchange(Fiscal year)(Note) Change due to boundaries change: Emissions in ﬁscal 2014 from the boundaries ofcollection newly added or excluded in ﬁscal 2015.
Change due to sales change: [Emissions in ﬁscal 2014 from the boundaries of collection forﬁscal 2015] x (Sales in ﬁscal 2015 / Sales in ﬁscal 2014 - 1)
Actual change: Calculated by subtraction

the energy efficiency in our overseas companies has also
contributed to the reduction while we are shifting our

Governanceinitiative of the Energy Saving Office. Ongoing improvement ofGreenhouse Gas Emissions from the Global Operations of
the Sumitomo Electric Group by Region(thousand tons-CO2e/year)

production facilities to overseas sites.

800

We continue to set an aggressive target of reducing GHG
emissions by 5% from the fiscal 2012 level by fiscal 2017. To
achieve this target, while maintaining the conventional

400

encourage the divisions to promote energy saving activities in a

300

more organized and voluntary manner. The Energy Saving Office

200
100

that introduces the issues to be considered in energy saving

730

Group's CSR Activities

500

Task Committee member from each parent division to

As part of the support activities, we will prepare a handbook

761 744600

cooperative activities, we have appointed a new Energy Saving

will give support to ensure that this system fully functions.

787

700

278 267 285 285

263 263 268 258

93 104 107 99

48 47 52 57

0Europe, etc.

China

Asia

Japan

America(except China)

efforts, and organize an on-site training program using the2012

handbook in Japan and overseas.

2013

2014

2015

thereby to encourage plant workers to voluntarily makepower consumption and improvement of productivity as well as
more in-depth measures such as revision of the production
conditions.

Reduction of Energy Consumption
Both the absolute value of energy consumption andthe value per unit of sales decreased slightly
We reduced energy consumption per unit of sales by 26% fromthe ﬁscal 2012 level in ﬁscal 2015. This signiﬁcant improvement
was attributed to sales growth supported by the depreciation

Greenhouse Gas Emissions and Reduction Ratio(in Japan and overseas)of the yen, along with improvement of energy eﬃciency.
Reduction ratio (%)

0.9

1.9

0
1
2
3
4
5

2.7
5.0

1,600
1,400

1,385

1,469

1,442

1,456

1,430

1,396

682

681

711

700

consumption per unit of production based on production
indicators so that the activities of the divisions can be assessedmore properly without influence of external factors such as
target in each division, we will strive to meet the target for the

649

800

whole Group.

600
400

752

200

787

761

744

730

Energy Consumption and Energy Consumption per Unit of Sales(in Japan and overseas)

747

0

2011

Overseas

2013
Result2014
Result2015
Result2017
Target(Fiscal year)

Energy consumption(TJ/year)

38

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

38

Reduction ratio(Note) GHG emissions are calculated based on the Greenhouse Gas Emissions Accounting andReporting Manual Ver. 3.5 (2014) by the Japanese Ministry of the Environment and Ministryof Economy, Trade and Industry (except the emission factors, which are mentioned below).

25,000CO2 emission factor for purchased electricity

15,00028

22,453 22,658 23,420 23,829 23,958 23,707

30
25

10,000
5,000
0

2010

2011

2012
Base

In Japan and overseas operations

2013
Result2014
Result2015
Result2017 (Fiscal year)
TargetEnergy consumption per unit of sales

Social Contribution

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

40
35

29

30,00020,000[Overseas] Emission factor in each country for 2011 mentioned in CO2 Emissions from
Fuel Combustion Highlights 2013 (2013) by IEA

35
32

Basic policy on the emission factors: ﬁxed emission factors are applied to the values for all
ﬁscal years presented in the graph.
[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

37

Environmental
Preservation

In Japan

2012
Base

Human Resources

633

until fiscal 2017, we plan to introduce the evaluation of energy

exchange rate fluctuations. Through the achievement of the

1,200
1,000

In the future, to ensure that the target is continuously achieved

Supply Chain

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

0

Products & Services

concerted efforts to save energy through reduction of standby

Core
Category

This program aims to provide know-how on energy saving andenhance the sensibility of employees on energy saving andBusiness Outline

energy saving activities in the fiscal year to meet the target and(Note) Energy consumption per unit of sales: Crude oil equivalent of energy consumption divided by sales

CSR Report 201664

Disclosure of Environmental Information●

Measurement-based evaluation ：We determine the number of steam and air leaks, the amountof energy loss in steam traps, compressors' power
consumption, etc. with measuring instruments. The
measurement results show the expected effects ofimprovement efforts in a quantitative manner, and help makeactual improvements. We also conduct measurement andanalysis of power consumption during holidays and at night, as
well as the diagnosis in overseas affiliates.

●

Cooperation in priority areas ：In addition to the equipment-related energy saving measures
proposed in the energy saving diagnosis program and otherconventional initiatives, measures to improve overall efficiency
on intangible aspects including production engineering andequipment utilization rate are also promoted through close
cooperation with divisions, business units and Sumitomo
Electric Technical Solutions, Inc.

●

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

We are actively promoting disclosure ofenvironmental information
We also respond to requests from external organizations for
supply of information. In ﬁscal 2014, we started to provide
emission data by category for Scope 3 of CDP＊ in the CSR
Report and increased the number of the categories to publish
the data.

Greenhouse Gas Emissions in FY2015 (thousand tons-CO2e/year)
Scope １

183

Scope 2

1,247

Scope 3２，
８１０Category

Description

1

Purchased goods and services

2

Capital goods

1,930

3

Fuel- and energy-related activities not included in Scope 1 or Scope 2 215

4

Upstream transportation and distribution

36

5

Waste generated in operations

45

6

Business travel

31

7

Employee commuting

69

484

(Note 1) Scope 1: Direct emissions from the use of fossil fuels, etc. in our facilities(including SF6 and other greenhouse gases)
Scope 2: Indirect emissions from the use of electricity and steam supplied from outside our facilities
Scope 3: Sum of Categories 1 to 7
(Note 2) The data for Category 4 in the table above cover logistics data in Japan only.

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

(Note 3) Basic Guidelines on Accounting for Greenhouse Gas Emissions Throughout the Supply Chain,Ver. 2.2 of the Japanese Ministry of the Environment were referred to for the calculation.

Energy Saving Activities in Offices
Energy Saving Activities in Production Units
We are working to reduce wasteful use and improve efficiency
with the effects of ideas for energy efficiency improvement《 Energy Efficiency Improvement Measures to Reduce Energy Use 》
We work to meet the group-wide energy saving target of
reducing energy consumption per unit of sales by 4% per annum
from the ﬁscal 2012 level in the Action ECO-21 Campaign. Group
companies and divisions also strive to accumulate energy saving
eﬀects to meet the target of reducing the absolute energy
consumption by 4% from the ﬁscal 2012 level.
In ﬁscal 2015, while the target was reduction of 12% from theﬁscal 2012 level, we reduced energy consumption by 11.9%.
The number of subjects in the submitted ideas and cost
reduction eﬀect are presented below.

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

549

611

497

1,400
1,200

166

670
328

464

800
600

1,237

400
200

1,000
800

610

548

600
400
200

(subject/
year)

712

227

622

716

871

0

363

0

2008

2009

2010

2011

Cost Reduction Eﬀect

2012

2013

2014

2015

(Fiscal year)

Number of Subjects in the Submitted Ideas《 Specific Measures 》
To promote energy saving activities of Group companies anddivisions, we have taken such measures as energy saving
evaluation, measurement-based evaluation, adoption of relevant
technologies and use of external engineering companies, andproposed new ideas. In ﬁscal 2015, in addition to proposal ofideas, we engaged in cooperation in priority areas, which was
conducted with divisions to promote the activities until remedial
measures were actually taken, and enhanced other initiatives byconducting the PDCA cycle to ensure improvement of theeffectiveness. The speciﬁc measures are described below.

Offices other than manufacturing sites also
promote energy saving activities
We reduced GHG emissions per floor area in offices by 20% fromthe fiscal 2012 level in fiscal 2015 while the target was set to be
reduction of 3%.
To promote the efforts, we have assigned a member and a vicemember of the Workplace ECO Activity Promotion Committee ineach workplace in the head offices, district offices and branch
offices. The committee members have taken energy saving
initiatives and formulated rules to promote and establish thefollowing activities:① Dressing cool in summer and warm in winter,to keep air conditioning moderate② Turning off all office lights during lunch break③ Turning off lights and air conditioners in meeting rooms andtoilets when not in use④ Introducing economy mode for PCs⑤ Turning off or down unnecessary lights etc.

Energy Saving Activities in Households
Sumitomo Electric Version of
My family's Minister of the Environment - Eco Family
The Sumitomo Electric Group worked for Eco-Life Activities topromote energy saving in households from fiscal 2008, and madeefforts to meet the target of reducing CO 2 emissions fromhouseholds by 5,000 tons per year until fiscal 2012. As a result,CO2 emissions decreased by approximately 9,600 tons
year-on-year in fiscal 2012.
While we have not set a numerical target for the reduction of
CO2 emissions in households since fiscal 2013, we maintain thewebsite for Sumitomo Electric Version of My family's Minister ofthe Environment - Eco Family, which is used as a household
eco-account book and a forum to post ideas on energy saving
efforts. We make use of this website to encourage employees tomake energy saving efforts in households by, for example,
commending those who are actively committed to the efforts
through the website and providing foliage plants and other prizes
from Sumiden Friend, Ltd. to the participants based on the points
obtained from the use of the website.

Glossary ＊CDP (former name: Carbon Disclosure Project)

65 CSR Report 2016

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.

Power Saving Report
Basis for Management

Energy saving activities in two plants that
consume a large volume of electricity
Kiyohara Sumiden, Ltd. and Sumitomo Electric Tochigi Co., Ltd. are both located in Kiyohara Industrial Park, which isone of the largest industrial complexes in Japan situated inland by the clear Kinugawa River in Utsunomiya City,
Tochigi Prefecture. These two companies consume so much electricity that both are among the top five Sumitomo
Electric Group companies in Japan in terms of power use.

Business Outline

Manufacturing Department

GovernanceTadashi Sugiyama General Manager
Yoshinobu Onishi Assistant Manager, Plant Engineering Group,

Hiroshi Takamizawa
Manager of Plant Engineering Group, Manufacturing Department

for base materials of optical fibers to customers all overwires). The plant uses large gas furnaces and hundreds ofthe world. Our company consumes much electricity

electric motors to manufacture products. We are making

because of the large production volume, in addition to theenergy saving efforts including recovery of waste heatprocess to transform quartz glass, which has high melting

from the furnaces to generate hot water and steam, as

point, into fibers in ultra-high purity. We are therefore

well as introduction of LED lights and high-efficiency

committed actively to reduction of power use mainly in air

motors and air conditioners. We also strive to reduce gas

conditioners and other utilities. All of our manufacturingconsumption, along with power use, by adjusting the airprocesses are implemented in clean rooms, and we haveratio in boilers and furnaces in a more meticulous manner.

focused on saving energy used by air conditioners

In addition to such equipment improvement, we arebecause it is most effective.

committed to improvement on the software aspects,

Specifically, the number of freezers was cut from seven tosuch as review of the operation of compressors andthree by introducing inverter ones and review of theinverters. As exemplified by the accumulation of thesesystem, and we optimized the setting of air conditioners

energy saving efforts, we are making steady efforts within consideration of temperature and humidity. We are

creative ideas.

also working to improve their operation through such

In recent years, steel tire cords have been required to be

initiatives as reduction of the waiting time of furnaces bystronger to reduce the weight and contribute to thethe use of IT. While exhaust gas is generated as a

improvement of fuel efficiency of cars. This gives us an

by-product, we are also trying to reduce energy use ofopportunity to take advantage of the features of ourblowers and other devices in the process to purify the gas

products, which have high strength and high quality. We

as our original initiative.

also consider that such features result in the reduction of

As a result of these efforts, the energy consumption in fiscal

total CO 2 emissions throughout the life cycle of the2015 was lower than the fiscal 2012 level although our

products including emissions at the stages of production

production increased during the period. We have also

and use. We will keep working for research andsucceeded in plant management, and the energy

development in cooperation with tire manufacturers andconsumption per unit of products produced was lowest ever.

contribute to the reduction of environmental impact

We will keep accumulating the effects of ideas for energy

through energy

saving, and promotesaving and various

detailed saving activities.

Human Resources

Sumiden, Ltd. supplies optical fibers and preforms used

cords used to reinforce car radial tires (high-strength steel

Supply Chain

Having started production activities in 1998, Kiyohara

activities in 1985, and its main products include steel

Products & Services

Sumitomo Electric Tochigi Co., Ltd. started production

Core
Category

Kiyohara Sumiden, Ltd.

Group's CSR Activities

Sumitomo Electric Tochigi Co., Ltd.

other efforts.

Environmental
Preservation

High-eﬃciency
freezers

Social Contribution

Generation of steam with
waste heat recovered fromthe quenching furnace
Steel cords for radial tires

Reduction of the waiting time of furnaces by
the use of IT

CSR Report 2016

66

Reduction of CO2 Emissions in Logistics

Promotion of Modal Shift

We reviewed the means and routes oftransportation to reduce CO2 emissions

We increased the use of railroad transportation
through coordination with our customers

In fiscal 2015, per unit CO2 emissions from transportation in the
Sumitomo Electric Group in Japan were reduced by about
1.6%(note) from the previous fiscal year and by about 6.7%(note)from the fiscal 2012 level.
Sumitomo Electric reduced CO 2 emissions in logistics with anincrease in transportation by railroad and large vehicles as aresult of various initiatives. For example, while railroad andcoastal transportation was used to deliver copper wire rods toMiyagi Prefecture, the product is now transported by railroad
only. Trucks were replaced by trailer trucks in the collecting
transportation of discarded electric wires from a powercompany. With growth in the export of copper wire rods,
domestic transportation of the products to the port of shipment
by trailer trucks was increased.
In the meantime, Sumitomo Wiring Systems, Ltd. improved
transportation efficiency by using coastal transportation fordelivering products from plants in the Kyushu region to theirdestinations in the Tohoku region and by replacing trucks withrailroad for supply of parts from the logistic center in the Kanto
region to plants in the Tohoku region.
We will continue the group-wide efforts to reduce CO2 emissions
from transportation.

Sumitomo Electric is active in promoting modal shift mainly in thecase of heavy and long-distance (500 km or longer) freighttransportation. In fiscal 2015, railroad and coastal transportation
for delivery to the destination in Miyagi Prefecture was shifted totransportation by railroad only.
Sumitomo (SEI) Steel Wire Corp. relocated manufacturing
facilities that had been located externally to the works in orderto reduce transportation between the processes, and also
increased the destinations of delivery by railroad from its affiliate
in Muroran. Through these efforts, the modal shift rate increased
by 0.2 points (approximately 0.6%) from the previous fiscal year.

(Note) Per unit CO2 emissions in the Sumitomo Electric Group in Japan
Sumitomo Wiring Systems, Ltd. adopts CO2 emissions per sales amount as thebasis for the calculation while other Group companies use CO 2 emissions per
cargo transport (t-km). Therefore, the weighted average of each year-on-year
CO2 emission reduction rate, or of each CO2 emission reduction rate from ﬁscal
2012 level, is calculated based on the CO2 emissions.

Per Unit CO2 emissions by Year
(tons-CO2/million ton-km)

100.0

98.0

90.0

98.6

3.95

3.77

85.0

32.0
31.0

30.3

30.4

2011

2012

31.8

31.8

32.0

2013

2014

2015

30.0
0

2012

2013

(Fiscal year)(Note) Boundaries of data collection: Sumitomo Electric + 35 manufacturing companies
in Japan (excluding Sumitomo Wiring Systems, Ltd.)※ Modal shift rate (%) =Cargo transport by rail or ship (ton-km)
×100
Total amount of cargo transport in Japan (ton-km)

Sumitomo Electric has acquired certification as a company
engaged in the initiatives of Eco Rail Mark＊ from theRailway Freight Association.
Eco Rail Mark

4.50

97.9

96.2

4.00

Shift to Direct Delivery by Railroad

3.50(Review of the V-shaped Transportation)

3.52

3.47

3.00
0

Sumitomo (SEI) Steel Wire Corp. largely reduced CO2 emissions

2014

2015

(Fiscal year)

by changing the modes and routes of transportation of steel

0

2011

（％）
33.0

(tons-CO2/100 million yen)

99.7

95.0

4.13

Modal Shift Rate of the Sumitomo Electric Group by Year
(Excluding Sumitomo Wiring Systems, Ltd.)

Sumitomo Electric Group (Sumitomo Electric + 35 manufacturing companies
in Japan (excluding Sumitomo Wiring Systems, Ltd.))

wires for springs from Hokkaido Steel Wire Co., Ltd., its

Sumitomo Wiring Systems, Ltd.

branches (in Fukushima, Saitama, Chiba and Shizuoka

manufacturing affiliate located in Muroran, Hokkaido, to fourPrefectures) of Company A, its distributor. Previously, because

CO2 Emissions from Export Activities
In light of the globalization of our business activities, we
calculated CO2 emissions concerning transportation from Japanto the ports or airports in the destination countries for delivery of
products to overseas destinations, supply of raw materials andparts to overseas affiliates and other export activities. The resultsof the calculation showed that CO2 emissions from our export
activities were approximately 2.6 times higher than those fromour domestic transportation in Japan and accounted for roughly
72% of total CO 2 emissions from our transportation activities.
About 87% of the emissions from export activities were
attributed to international air delivery.
We will also consider reduction of the use of international air
delivery, along with modal shift in Japan.

Company A ordered the wires in small lots, the products for
Company A were first transported from Muroran to Itami, Hyogo,
in which the main site of Sumitomo (SEI) Steel Wire is located, by
coastal transportation together with products to be delivered toother companies, and then distributed by truck with other items
produced in Itami, to improve transportation efficiency.
To further improve transportation efficiency and reduce CO 2
emissions, Sumitomo (SEI) Steel Wire asked Company A toconsolidate orders and also requested Hokkaido Steel Wire toconsolidate manufacturing of the products. As a result, the lot
size of an order from each branch of Company A has increased
to a suitable level for railway container transportation, and the
products are now delivered from Muroran directly to thebranches using railway containers. This improvement reduced
CO2 emissions by approximately 22 tons per year, or about 78%,in comparison with the previous transportation method.

CO2 Emissions from Transportation in Sumitomo Electric in Fiscal 2015
ExportTransportation in Japan

8,475.8 t- CO2（72.4%）

3,224.4 t- CO2（27.6%）
Truck
2,438.9 t- CO2（75.6%）■

International air
7,331.7t- CO2（86.5%）■

Annual CO2
emissions11,700.2
t-CO2

MuroranRailroad
557.6 t- CO2（17.3%）■

Vessel in Japan
222.0 t- CO2（6.9%）

Distributor(4 branches)

Itami

■

Air in Japan
5.9t- CO2（0.2%）■

Ocean vessel
1144.1t- CO2（13.5%）■

BeforeAfter
MuroranDistributor(4 branches)(Note) Boundaries of data collection: Sumitomo Electric

Glossary ＊Eco Rail Mark67 CSR Report 2016

A certiﬁcation mark awarded by the Ministry of Land, Infrastructure, Transport and Tourism, Government of Japan. The use of the mark is allowed only for
products or companies that use rail transportation, which generates relatively less CO2 emissions and is therefore environmentally friendly, in accordancewith designated criteria. The mark included in packages and advertisements of products serves as a judgment standard for customers' purchase decisions.

Promotion of Resource Conservation and Recycling
manufactures flexible printed circuits. In addition, theWe are promoting resource saving and recycling

make steady efforts to reduce waste generation.

generation of excess sludge was reduced through proper
management of the effluent treatment process. We thus

《 Promotion of Zero Emissions 》
In our efforts for the zero emission rate, we achieved theGroup companies as a whole in fiscal 2009, and have worked
to decrease the rate to 0.3% or less since fiscal 2013.

Waste Reduction Rate (Excluding Valuable Materials)
in JapanAmount of waste(excluding valuable materials)(thousand tons/year)

0

Reduction rate (%)

50

9.4

The zero emission rate in the Group in Japan as a whole infiscal 2015 was 0.10%, which met the target as in theprevious fiscal year.
While most of waste is recycled, we will be also committed

5

11.9

10

40

15

33.5

34.1

2011

2012
Base

30.9

30

32.5

30.1

20

Governanceto recycling of the remaining waste that is difficult to recycle,

0

4.7

as well as the waste newly generated from new products,
10etc., to maintain this level.

Zero emission=
rate (%)

Amount of waste incinerated without heat recovery+ Amount of landﬁll waste
Amount of industrial waste+ Amount of general waste+ Amount of valuable materials

0×100
Amount of waste

Amount of Waste and Zero Emission Rate (in Japan)
Amount of waste(thousand tons/year)

0.07
90
80

80.6

2

82.2

0.04
79.3

0.03
81.4

0.10

45.2

48.0

Amount of Waste by Type in Fiscal 2015 (in Japan)

Total : 79 tons/year
Sludge0

Waste glass andceramics

6

Waste paper

5

79.9

Waste plastics

48.4

48.8

49.8

(Fiscal year)

55

Core
Category

50

2015

Reduction rate from the ﬁscal 2012 level

1

70
60

2014

Waste landﬁlled or incinerated without heat recovery

Zero emission rate (%)

0.05

2013

3

Others10

Products & Services

40
30
20

35.4

34.1

30.9

32.5

30.0

0.1

0.0

0.0

0.0

0.1

2011

2012

2013

2014

2015

10
0

Valuable materials
Zero emission rate

Recycled waste

Heat recovery

6,802 tons/year(Fiscal year)

Incineration and landﬁll wastes

Material recycling

Amount of
waste

23,180 tons/year

79,886
tons/year

Valuable materials

49,825 tons/year

Supply Chain(Note) In accordance with the change of the way of calculating the zero emission rate in
the Action ECO-21 (Phase Ⅵ) Campaign launched in ﬁscal 2015, part of thevaluable materials that were previously not included in the denominator (thematerials that were already treated as valuable in ﬁscal 2000) are also included in
the amount of valuable materials. Accordingly, the amount of valuable materials
and zero emission rate in and before ﬁscal 2014 have been adjusted retroactively.

Group's CSR Activities(Note) From the Action ECO-21 (Phase Ⅵ) Campaign launched in ﬁscal 2015, all valuable materials,
part of which were not included in the denominator until ﬁscal 2014 (the materials thatwere already treated as valuables in ﬁscal 2000), are included in the denominator.

Business Outline

target of maximum 1% zero emission rate in the domestic

Basis for Management

Efforts to Achieve Zero Emissions andReduce the Amount of Waste (in Japan)《 Reduction of the Amount of Waste 》
target of reducing the absolute amount by 1% per year withfiscal 2012 as the base year. While production growth tends
to be accompanied by an increase in the amount of waste,

Amount of recycled waste Total : 73,005 tons/year

40,137

Waste metallevel in fiscal 2015, which exceeded the target of the

Waste plastics

6,898

Sludge6,613

reduction of 3%.
To reduce the amount of waste, we promote conversion of

5,925

search of uses, and also focus on reduction of defects andWaste acid

5,569

review of the process that caused defects in production sites,

Waste paper

3,275

which are fundamental activities for manufacturing, as well as

Waste oil

2,901

reuse of the waste generated within the company andWood waste

785

In fiscal 2015, the amount of waste was significantly reduced

Waste glass andceramics

511

with the operation of waste acid and alkali treatment

Others392

reduction of waste volume.

Social Contribution

Waste alkali

the waste into valuable materials through separation andEnvironmental
Preservation

we achieved the reduction of 11.9% from the fiscal 2012

Human Resources

We make efforts to reduce the amount of waste with theequipment at Sumitomo Electric Printed Circuits, Inc., which

CSR Report 2016

68

Reduction of the Waste to Be Incinerated
Without Heat Recovery or Landfilled (Overseas)
We will continue to promote our activities toreduce the zero emission rate
We are committed to resource saving and recycling in overseas
Group companies with the target of reducing the zero emission
rate to 5% or less from fiscal 2010.
The zero emission rate in fiscal 2015 was 8.7%. While thetarget was not achieved, the rate was reduced by 1.4 points
from the previous fiscal year. Recycling was promoted withthermal recycling of general waste, which was previously
landfilled, by changing the disposal service providers, as well as
thorough segregation of waste in the bases where waste
generated from the production process was landfilled.
We will continue to encourage the overseas Group companies
that have not met the target zero emission rate to reduce theamount of waste incinerated without heat recovery or
landfilled in cooperation with staff in their parent divisions.
Amount of Waste and Zero Emission Rate (Overseas)
Amount of waste(thousandtons/year)

We increased absolute water consumption but
reduced the volume per unit of sales
We have been actively committed to reducing water
consumption as an action item since ﬁscal 2008. In ﬁscal 2015,
while water consumption increased year-on-year partly due tothe growth of production especially in overseas bases where alarge volume of water is used, we reduced the volume per unitof sales by 24.0% from the ﬁscal 2012 level, which exceeded
the target and also represented a little improvement from thelevel in the previous fiscal year.
As water leakage accounts for a surprisingly high percentage of
the water consumption, we are making steady eﬀorts forprevention of water leakage and management of water use.
We are also committed to reduction of water consumption
through collective use of gas washing columns, improvement ofeﬃciency of water-cooled air conditioners and installation ofelectrolytic scale removal systems, in parallel with eﬀorts to
reduce energy consumption in these facilities, as well as thereuse of the wastewater that used to be discharged.

Zero emission rate (%)

11.2

10.5

11.7

10.1

90
80

Water Use Reduction

76.5

81.8

76.2

20

8.7
86.2

10

Water Consumption and Reduction Rate per Unit of Sales(in Japan and Overseas)

17.3

18,000

58.1
43.1

50

44.4

41.1

46.4

16,00023.2

24.0

14,00040

36.0

12,000

30
20

15.5

10
0

25.4

29.1

26.2

8,000

6.5

8.1

8.9

8.3

7.5

6,000

2012

2013

2014

2015 (Fiscal year)

4,000

Incineration and landﬁll wastes

2,000

Recycled waste

11,98012,172

11,835

12,381

12,665

5,694

5,957

5,757

6,466

6,764

6,286

6,215

6,078

5,915

5,901

2011

2012
Base

2013

2014

2015

10,00032.3

2011

Valuable materials
Zero emission rate

0
5
10
15
20
25

Consumption(thousand m3/year)

70
60

Reduction rate perunit of sales (%)

0

0

0

(Note 1) In accordance with the change of the way of calculating the zero emission rate in
the Action ECO-21 (Phase Ⅵ) Campaign launched in ﬁscal 2015, part of thevaluable materials that were previously not included in the denominator (thematerials that were already treated as valuable in ﬁscal 2000) are also included in
the amount of valuable materials. Accordingly, the amount of valuable materials
and zero emission rate in and before ﬁscal 2014 have been adjusted retroactively.
(Note 2) The amounts of incineration and landﬁll wastes and recycled waste for ﬁscal 2012,2013 and 2014 have been corrected for the improvement of accuracy.

(Fiscal year)

Consumption in Japan
Consumption in other countries
Reduction rate per unit of sales(Note) Water consumption is calculated as the sum of the consumption of city water,industrial water and groundwater.

Waste Segregation in Overseas Affiliates (the United States)

JUDD Wire, Inc.

JUDD Wire, Inc. is our manufacturing base forelectronic wire products in Massachusetts.
It has conventionally promoted recycling activities,
including the recycling of waste plastics, metals, oil,etc. generated from the process of manufacturing
electronic wires and the separation and recycling of
paper and bottles from general waste, as well as

How waste isseparated

Paper andcardboard

Plastic bottles andcans

Ink cartridges

donation through the separation and collection ofcellular phones and ink cartridges.
The only type of the waste that was still landﬁlled
was general waste that could not be recycled. Aspart of the activities of the Sumitomo ElectricGroup to achieve zero emissions, the waste has
been disposed of by a company that incinerates
general waste to generate power since ﬁscal 2015.
With this change, Judd Wire achieved the target
zero emission rate.

69 CSR Report 2016

General waste to be incinerated forheat recovery

Waste plastic to be recycled

Reduction of the Release of Harmful Chemical Substances

We have established an original system to unify
the management of chemical substances

The whole Group, including overseas affiliates,
is submitting reports in accordance with the applicable laws

The Sumitomo Electric Group established a chemicaland deleterious substances and PRTR-designated substances inmeasure the amount of PRTR substances treated per month, andSumitomo Electric's three Works in Osaka, Itami and Yokohama,calculate the amount of these substances released andand our affiliates in the Works in fiscal 2011. The system is alsotransferred in order to report annually in accordance with theused to collect data for reporting under the PRTR Law.

law. A total of 44 sites of Sumitomo Electric's Osaka andIn fiscal 2012, domestic affiliates outside the three Works also

Yokohama Works and 27 Group companies submitted suchlaunched the operation of this system in sequence, which

reports for ﬁscal 2015. Sumitomo Electric Group's total releaseenabled the search of the companies using poisonous andand transfer of PRTR-designated substances in Japan were 53

deleterious substances and safety data sheets (SDS) concerning

tons and 131 tons, respectively.

all poisonous and deleterious substances used in affiliates inJapan.

Release and Transfer of Chemical Substances
Speciﬁed in the PRTR Law by Year

We will continue our efforts to enhance the management of
Release

Release and Transfer (tons)

chemical substances used in the Group.

Transfer

Governancemanagement system, and started the management of poisonous

substance management system developed by the Company,

Business Outline

Sumitomo Electric and its affiliates in Japan, using the chemical

Basis for Management

Chemical Substance Management System

Release and Transfer of Chemical
Substances Specified in the PRTR Law＊

200

169
150
100

143

134
95

81

63

66

59

53

2012

2013

2014

2015

We are continuously conducting soil andgroundwater remediation and groundwater monitoring

0

2010

2011

We disclosed the pollution status of three major Works (Osaka,(Fiscal year)

Itami and Yokohama) in August 2001. At those three Works and・The amounts are calculated in accordance with PRTR Release Estimation Methods
Manual, version 4.1 (2011) by the Ministry of the Environment and the Ministry of
Economy Trade and Industry of Japan.

other domestic sites where pollution has been identified throughour surveys conducted thus far, we are continuing soil andgroundwater remediation by soil replacement, groundwater

Reduction of the Release of Chemical
Substances Specified in the PRTR Law

pumping and soil gas absorption. We also conduct groundwater
monitoring on a regular basis, and have confirmed that theCore
Category

pollution has not spread outside the sites.

We are committed to reducing the release ofchemical substances specified in the PRTR Law
substances specified in the PRTR Law by 3% from the fiscal 2012

We continue to control the facilities subject to the law
We manufacture no products using asbestos

level as an initiative of the Action ECO-21 (Phase Ⅵ) Campaign,and started the activities to meet the target in fiscal 2015.
the atmospheric release based on the catalytic combustionm e t h o d＊ a n d r e v i s e d t h e r e l e a s e f a c t o r b a s e d o n t h emeasurement of the air emission concentration of the target
substances. As a result, the annual release was reduced to 52.5
tons in fiscal 2015, which represented a decrease of 16.1% fromthe fiscal 2012 level to meet the above-mentioned target.

ReleaseInto airInto waterTransfer

Into soil

Into landﬁll

Total release

By sewage

By disposal

Total transfer

Total
amount

0.0

0.0

0.0

22.0

0.0

8.5

8.5

30.5

4.6

0.0

0.0

0.0

4.6

0.0

14.6

14.6

19.2

Nickel compounds

0.0

0.2

0.0

0.0

0.2

0.0

16.0

16.0

16.2

Lead

0.0

0.0

0.0

0.0

0.0

0.0

16.0

16.0

16.0

Dichlorobenzene

3.2

0.0

0.0

0.0

3.2

0.0

12.0

12.0

15.2

Cresol

3.4

0.0

0.0

0.0

3.4

0.0

11.4

11.4

14.8

Xylene

3.1

0.0

0.0

0.0

3.1

0.0

6.3

6.3

9.4

1-bromopropane

6.3

0.0

0.0

0.0

6.3

0.0

0.7

0.7

7.0

2−aminoethanol

0.0

0.0

0.0

0.0

0.0

0.4

5.2

5.6

5.6

Bis(2-ethylhexyl)phthalate

0.0

0.0

0.0

0.0

0.0

0.0

5.4

5.4

5.4

35 other substances

8.5

1.2

0.0

0.0

9.7

0.2

34.0

34.2

43.9

Total

51.1

1.4

0.0

0.0

52.5

0.6

130.1

130.7

183.2
(Unit: tons)

Chemical substanceDioxins

ReleaseTransfer

Into airInto water

Into soil

Into landﬁll

Total release

By sewage

By disposal

Total transfer

0

0

0

0

0

0

2

2

(Note) Boundary of data collection: Sumitomo Electric + PRTR obligatory companies among its aﬃliates in Japan

Glossary ＊ PRTR Law
Act on Conﬁrmation, etc. of Release Amounts of Speciﬁc Chemical Substances inthe Environment and Promotion of Improvements to the Management Thereof.

Totalamount2Social Contribution

22.0

PhenolEnvironmental
Preservation

TolueneHuman Resources

Release and Transfer of Chemical Substances Speciﬁed in the PRTR Law

Supply Chain

The aluminum alloy manufacturing facility and its exhaust gas
purification facility at Sumitomo Electric Toyama Co., Ltd. aresubject to the Law Concerning Special Measures against
Dioxins. We have ensured that emissions from these facilities
remain within regulated standards.
At present, the Sumitomo Electric Group produces noproducts using asbestos.

In the sites that release 1 ton or more to the air in a year, we cut

Products & Services

Measures against Dioxins and Asbestos

We set the target of reducing the release of chemical

Chemical substanceGroup's CSR Activities

50

Soil and Groundwater Remediation

131

119

100

(Unit: mg-TEQ)＊Catalytic combustion method
Method using noble metal catalyst to oxidatively decompose organic
constituents at a low temperature between 200 and 400 degrees Centigrade.

CSR Report 201670

Expansion of Environmentally Conscious Products
Expansion of Environmentally Conscious Products

By the end of fiscal 2015, a total of 234 items have been

We are actively promoting assessment anddevelopment of environmentally conscious products

was 53%.

Along with reduction of environmental impact from ourregistered as Eco-products. The sales ratio in fiscal 2015

《 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 78 thousand tons in fiscal 2015.

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 》

60

We perform environmental assessment of products when50

developing new products, as well as when making major

40

design changes to existing products. The products having
undergone product assessment are registered as Eco Mind
products in the Sumitomo Electric Group.

30

53
40

20

44

90

78
57

10
0

41

32

Contribution toemission reduction(thousand tonsCO2/year)

59

80
70

63

60
50

43

40

By the end of fiscal 2015, a total of 817 items have been30

registered as Eco Mind products.

20
10《 Eco-Products (Eco Symbol Program) 》
Among Eco Mind products, the products with particularly
outstanding environmental features are examined inaccordance with our Eco Symbol Program, which is based on
ISO14021, and those that meet the criteria are certified as
Eco-products. Through this system, we aim to promote
development of environmentally conscious products andstrive to penetrate the market with them.

0

2011

2012

2013

2014

2015

(Fiscal year)

・ Calculation method
The percentage of Eco-products in sales is calculated as the value ofthe shipments* of the products certiﬁed Eco-products divided by
the total value of shipments*.
(* Shipments are those from manufacturing departments in Japan. However,they exclude shipments from electronic conductor departments, which mainly work
to supply intermediate goods within the Group.)
For methods to calculate contribution to the reduction of CO2 emissions,
see Examples of Eco- Products in P72.

Eco-Products Report
We developed a high-efficiency "regenerative DC/DC converter"that helps improve the fuel efficiency of gasoline-fueled cars

Ryuichi Mizumoto

Yoshikazu Sasaki

Manager

Assistant General Manager

Design Department 2, Power Electronics Division, Electronics Group,
Sumitomo Wiring Systems, Ltd.

We have developed a regenerative DC/DC converter that isused for car engines and electrical systems to control charge
and discharge with high efficiency. This converter uses
deceleration energy generated at the time of braking to charge
and discharge a capacitor (storage battery). The productstructure adopts our patented high heat-dissipation board PS
BoardTM, which is lighter by 100 g than currently used metalbase substrates. PS Board also has adhesive and insulation
layers with high thermal conductivity and its heat radiation
performance is 1.5 times higher than competing products,
increasing output current by 10 A. These improvements of theperformance enable more efficient use of deceleration energy
and help the vehicles equipped with the converter enhance thefuel efficiency and reduce CO 2 emissions. The development
was conducted with frequent design meetings to thoroughly

71 CSR Report 2016

discuss the reliability andapproach of the design
with other members.
While radio noise was a
problem at first, we
solved it through vehicle
evaluations anddurability evaluations toRegenerative DC/DC converter
reduce the noise. We
also achieved high conversion efficiency in the circuit to meetthe demand of car manufacturers.
This product was developed at the request of Honda R&D Co.,
Ltd., a car manufacturer, through cooperation between
AutoNetworks Technologies, Ltd. and Sumitomo Wiring
Systems, Ltd. from order receipt to the stage before mass
production.
Mass production of the converter has been already started,and five car models are now equipped with the product in themarket. Its energy-saving performance raises the fuel efficiency
mainly of gasoline-fueled vehicles. While an increasing numberof electronic items are mounted on vehicles, products that
efficiently use electricity are required. In the future, we willfurther enhance the conversion efficiency of the converter anddesign high-output circuits to contribute to the improvement offuel efficiency, manufacturing of environment-friendly products
and thereby creation of an environment-friendly society.

Examples of Eco-Products
Contributing toresource saving byextending theservice life

CELMET®
(porous metal)

GaN HEMTLightweight wire
harness

Cemented carbide tools Sintered products
Sumitomo Electric Sinteredwith longer service life

Sumitomo Wiring Systems, Ltd.

Sumitomo Electric Hardmetal Corp. Alloy, Ltd.

The contribution is calculated byestimating the improvement of fueleﬃciency 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).

The contribution is calculated
based on resource saving by theextension of the service life andreduction of CO 2 emissions fromthe production using the
Embodied Energy and Emission
Intensity Data for Japan Using
Input-Output Tables of National
Institute for Environmental Studies.

Sumitomo Electric Toyama Co., Ltd.
The contribution is calculated byestimating CO2 emissions reducedwith a hybrid car in accordancewith the criteria set by Sumitomo
Electric based on the Automobile
Fuel Eﬃciency List (March 2014)
published by the Japanese Ministryof Land, Infrastructure, Transport
and Tourism and other data.

Sumitomo Electric Device
Innovations, Inc.
The contribution is calculated byestimating the reduction of CO 2
emissions achieved with the eﬀectof the device in the improvement ofeﬃciency at a 2.6 GHz base station
based on the criteria set by
Sumitomo Electric.

Contributing to the
reduction of resource
use with highproductivity ofprocessed materials

The contribution is calculated byestimating the amount of theresources saved and CO2 emissions
reduced in the production of theprocessed materials due to thehigh material utilization rate
and the decrease of energy
consumption, based on literature ofJapan Powder Metallurgy
Association.

GovernanceContributing to theimprovement of fueleﬃciency of cars bytrimming the weight

Business Outline

Contributing to energy
saving in base stations withcompound semiconductor
power amplifying elements

Basis for Management

Contributing to theimprovement of fueleﬃciency of hybrid cars aselectrodes of secondary
batteries

Activities to Conserve Biodiversity
Relations with Business Activities and Response

The Sumitomo Electric Group aims to procure raw materials
and design and manufacture products in a way that protects
the ecosystem and maintains sustainable resource use. We
also seek to contribute to the environment 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
Wood (paper), Water, etc.

Renewable resources

Energy resources

Renewable resources

Wood (paper), Water, etc.

Energy resources

Energy resources

Crude oil, Natural gas, etc.

Aspects/Impacts
Air pollution
NOx, SOx, VOCs, etc.

Air pollution

Water pollution

BOD, COD, SS, etc.

Climate change

Climate change

CO2, SF6, etc.

Air pollution

Aspects/Impacts
NOx, SOx, VOCs, etc.

Water pollution

BOD, COD, SS, etc.

Crude oil, Natural gas, etc.

Beneﬁts
Crude oil, etc.

Aspects/Impacts
NOx, SOx, VOCs, etc.

Migration of species
CO2, etc.

Products & Services

Beneﬁts
Copper, Iron, Crude oil, etc.

Mineral resourcesCore
Category

Basic Approach

Group's CSR Activities

The Action ECO-21 Campaign is linked to biodiversity via activities to conserve the ecosystem

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)

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.

※ SEI Business Creates, Inc. (SBC) has this permanent organization dedicated to greening activities in Osaka, Itami,
Yokohama Works, and in manufacturing site in Kanto and Kumatori.

CSR Report 2016

Social Contribution

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

Recovery and recycling
Works Environment Committees● Works Development Committees● SBC Greening Group※●

Transportation and sales
Human Resources

●

●

72

〈 CSR Core Category 〉

Social Contribution〈 CSR Priority
P
Theme 〉

Contribution through Our Business
Locations and Foundation

We will promote long-term social contribution in
local communities even more and in a wider range of ﬁelds.
The business activities of the Sumitomo Electric Group
cover a vast range of technologies, markets and businessdomains, which involve various stakeholders. In addition tosocial contribution through business activities, we willcontinue to make long-term social contribution in a wide
variety of ﬁelds in consideration of the following themes.

◉ Develop social contribution activities that meet
local needs◉ Establish partnerships with community-basedorganizations◉ Continue long-term social contribution initiatives

We are fully aware that trust of
local residents is essential for our business
Keiji Muraoka Assistant General Manager of Administration Group, Osaka Works
I am always thinking hard about how we can increase
Inquiries andopportunities to let local people know more about the Osaka
letters from local residents
Works. In addition to conventional initiatives, such as opening ofsports grounds, plant tours, invitation to the Inari Festival and publication of a semiannual local
community paper, we have invited local residents to Rose Festa held at the rose garden in theWorks since 2011. Fortunately, the festival has become so popular that we receive manyinquiries about it like When is it held this year? and 1,000 people or so visited the event in2016. We have also started to lend light tents that can be easily assembled for local events.
Looking at the current situation of the local community, I suppose we can do much more for
local residents. I have been in charge of contribution to the local community at the Osaka Works
for seven years. We would like to further enhance exchanges with local people and work forcontribution to them, which is an important theme for the Sumitomo Electric Group.

Social Contribution
Basic Policies on Social Contributions

which is aiming to be a Glorious Excellent Company, with

Sumitomo Electric stipulated the Sumitomo Electric Group
Basic Policies on Social Contributions, which are based on the
Sumitomo Spirit and the Sumitomo Electric Group Corporate
Principles, on the occasion of the 110th anniversary of its
founding in 2007.

a vehicle to contribute to encouragement of research and

The Sumitomo Electric Group Basic Policies
on Social Contributions
The Sumitomo Electric Group will proactively address voluntarysocial action programs, as a member of society, focusing on respectfor human resources, attaching importance to technology, andcreating a better society and environment in accordance with theSumitomo Spirit and the Sumitomo Electric Group Corporate
Principles, as well as widely contributing to society through its
business activities, including the provision of products, technologies
and services that beneﬁt society.

focus on the establishment of the SEI Group CSR Foundation aslearning activities and human resource development, as well as
on promotion of activities to contribute to local communities
and support of volunteer activities and donations by
employees.

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 2015, the SEI Group CSR Foundation received
contributions of a little over 163,880 thousand yen in total● Globally promote eﬀorts toward the development of humanfrom Sumitomo Electric (with the whole amount, including a

resources, the promotion of research and learning andenvironmental conservation.

little over 880 thousand yen donated through the cafeteria● Promote community-oriented social contribution activities in theGroup's business locations all over the world.
● Provide

continuous support to employees' voluntary social
contributions.

plan, appropriated for operation) and (1) donated 112 million
yen in total to university courses, (2) supplied subsidies of 20.9
million yen in total to academic and research activities, and (3)provided scholarships of approximately a little over 32.3 million
yen in total for 17 Japanese students and 18 foreign students

Under the Basic Policies, we are committed to the social

learning in Japan and 100 local students studying at overseas

contribution activities suitable for the Sumitomo Electric Group,

universities.

73 CSR Report 2016

《 Program to Make Donations to University Courses 》

Endowed lab. Innovation Management Science at Kyoto University●

Research course on tsunami marine hazards at Kobe University●

Research on terminal care for elderly patients with chronic
heart disease at Saga University●

Data Entrepreneur Program (IT innovation human resource
development programs for data science and new business)at the University of Electro-Communications●

Hands-on training program for the development of young
entrepreneurs at the University of Tokyo●

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●

Elucidation of molecular mechanisms responsible for pathophysiology
of diseases and clinical application by analysis of endoplasmic
reticulum microfragments. at Hiroshima University (new)We also invited applicants to the program to support academic
and research activities, and received 186 applications. Out ofthem, we have selected 21 research programs including basic
science research that needs research funds and exploratory
study by young researchers, and offered subsidies to them.

Group CSR Foundation page of our website
http://www.sei-group-csr.or.jp/e/index.html

CSR
VOICE

Ms. Siyao Wang

We have promoted TABLE FOR TWO, a program＊ to contributeto society and support health management of our employees atour cafeterias since October 2011. Part of the proceeds isdonated to help provide school meals in developing countries. In
addition, we develop activities to donate profit on sale of PET
bottle caps, used books and CDs as prices for vaccines to beprovided to children across the world through Japan Committee,
Vaccines for the World's Children, an authorized NPO.

Social Contribution through Donations
We are making social contribution through donations
from a global perspective
In ﬁscal 2015, we made donations in various areas including
schools and education, industrial and academic development,
R&D, art and culture, welfare, local development, environmental
conservation and sports. For example, we gave ﬁnancial
support to symphony orchestras and opera performance as partof our efforts to assist art and cultural activities, as well as
important social activities such as environmental conservation
by nature conservation funds and other organizations. We alsocollected matching gifts＊ from employees to make a donation
to the Japan Committee for UNICEF, Japanese Red Cross
Society, World Wide Fund for Nature (WWF) Japan, etc.
In addition, we donated sponsorship money to OSAKA 2020
Dream Program for the 2020 Tokyo Olympic and Paralympic
Games. We thus developed a wide range of social contribution
activities.
Amount of Donations by Category (Sumitomo Electric alone)
The SEI Group CSR Foundation

Other

Total

163,000,000 yen

82,042,268 yen

245,042,268 yen

Environmental conservation
1,000,000 yen

Other 5,923,100 yen

Local development
3,472,000 yen

82,042,268

Welfare projects
3,455,468 yen

yenSports, arts andculture25,340,000 yen

Industrial and academic
development, researchand development
25,171,000 yen

Schools and education
17,680,700 yen

Environmental
Preservation

Amount of Donations by Year(thousand yen)

1,000,000

924,560

800,000
600,000

809,526

749,738

527,643

200,000

500,000

500,000

500,000

2011

2012

2013

216,582 245,042

300,000
2010

2014

2015

(Fiscal year)

Accumulated endowment in the SEI Group CSR Foundation(Note) We completed the accumulation of 2 billion yen of endowment of thefund, which was the initial target, in 2013 and have donated fund for
operation only since ﬁscal 2014.

In this program, a low-calorie, well-balanced healthy menu is oﬀered daily at the company
cafeterias, etc. and 20 yen is donated from the sale of each meal to help provide school
meals to children in developing countries via TABLE FOR TWO International, an NPO.

Social Contribution

400,000

0

Human Resources

Glossary ＊TABLE FOR TWO (TFT) program

We are committed to a program aimed at contributing
to society and helping employees manage their healthSupply Chain

I am Siyao Wang from Shanghai, China, a third year student of
Shanghai International Studies University (SISU). I belong to Schoolof Japanese Studies and major in international economics & trade(in Japanese).
I would like to express my sincere gratitude for the scholarshipprovided by the SEI Group CSR Foundation. This scholarship was
definitely very helpful to enrich my college life. Looking back mycollege life so far, I had both successes and failures. In suchoccasions, the scholarship gave me power and encouraged me tokeep working hard without getting too excited or to stand up again
without fear of difficulties. For me, the scholarship is not justfinancial support but also spiritual assistance. It gave me a message
that some people believe in me and put their hope on my future.
Thanks to such support, I have tried various things and grown.
I am now studying at Hosei University in Tokyo, Japan in a half-yearexchange program with exemption of tuition fees. Everything aroundme, including people and landscape, is new to me and I feel thrilled
every day. Of course, there were some concerns and troubles, but I
now enjoy overcoming such negative feelings. I want to enrich mystudy abroad life, which has almost come to the end.
I started an internship at Sumitomo Electric Management (Shanghai)Co., Ltd. in November 2015. It was a new challenge for me and also
the first step as a member of society. While the internship lasted
only four months, I received much support and, above all, learned
many things from the enthusiasm of the employees for jobs andtheir sincere attitude toward details.
While economic exchanges between China and Japan are
expanding, I hope to find a job in which I can use my expertise I
learned at university and contribute to the promotion of thefriendship between the two countries, and will continue to makeefforts for the dream.
I would like to thank the Sumitomo Electric Group for its social
contribution activities in China, and wish that the Group will have
many more successful years.

Collaboration with an NPO

Products & Services

Third year student majoring in international
economics and trade, School of Japanese Studies,
Shanghai International Studies University※ The number of users of the system is shown in the table of
Number of Users of the Employee Support Programs in P54.

Core
Category

I am dreaming of working
as a bridge between
China and Japan

We have introduced a volunteer holiday system ※ since April
2007, which allows employees to take cumulative paid holidays(up to 10 days in a year) for performing volunteer activities.

Group's CSR Activities

Web

We support volunteer activities by
employees with various systems

Governance●

Volunteer Activities

Business Outline

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

Basis for Management●＊Matching gift system
The company concurrently donates an amountequal to the donation made by an employee inthis system.

CSR Report 201674

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 54 companies of Sumitomo Electric and its group companies are covered.
They include Sumitomo Riko Company Limited, Nissin Electric Co., Ltd. and
Sumitomo Densetsu Co., Ltd., which are listed in stock exchange.

Promoting community support activities andexchange with local communities● Local cleaning activities, promotion of greening,

environmental conservation activities, etc.

● AED
ED training session attended by local resid
residents
dents

Sumitomo Electric: Cleanup of the area around each of its business sites
Cleanup activities are performed in 34 of the 54 companies including
the company mentioned above.
●● Supporting local disaster-prevention and safety activities

Yokohama Works of Sumitomo Electric: AED training session attended by local residents as well
Performed in 25 of the 54 companies including the company mentioned above.
●● Opening corporate facilities (sports grounds, gyms, etc.) to the public●

Performed in 5 of the 54 companies including Sumitomo Electric Fine Polymer, Inc.
● Plant tour for elementary school students● Inviting local residents and students(from elementary, junior high and high schools) to plant tours
Sumitomo Electric Sintered Alloy, Ltd. received 27 local elementary school students in February 2016
Performed in 12 of the 54 companies including
the company mentioned above.
●● Opening company sites to the public to organize events

Osaka Works of Sumitomo Electric: Organized Rose Festa in June
Performed in 4 of the 54 companies including the company mentioned above.
●● Publishing local community magazines

Osaka Works of Sumitomo Electric in July 2015 and January 2016,
ember 2015
Itami Works in April and December 2015 and Yokohama Works in May and November● Invitation of local residents to Rose Festa

Contributing to sports and cultural activities● Contributing to sports activities

Sumitomo Electric: Sponsoring the 71st Lake Biwa Mainichi Marathon in March
arch 2016
In Itami Works, jointly organizing athletic practice sessions for elementary school andjunior high school students in Itami City (18 sessions a year)●

Performed in 10 of the 54 companies including the company mentioned above.

● Contributing to arts and cultural activities

STARNET Co., Ltd.: Supporting the Osaka Symphoniker Society (Osaka Symphonyny Orchestra)●● Athletic practice session forjunior high school students

Performed in 5 of the 54 companies including the company mentioned above.
bove.

Supporting education and training● Offering hands-on training programs and off-campus classes tostudents and teachers
Itami Works of Sumitomo Electric: Accepting junior high school students fora work participation program Try - Yaru Week in May and June●

Performed in 25 of the 54 companies including the company mentioned above.

● Holding on-site seminars

Kiyohara Sumiden, Ltd.: Sending lecturers to a local high school for
Business People Panel Discussion in March 2016●

● Material support for those aﬀected byp earthquakeq
the Nepal

Performed in 5 of the 54 companies including the company mentioned above.

Activities in other countries● Employee volunteerism in local communities

SEI Trading India Pvt. Ltd.: Material support for those affected by the Nepal earthquake● Donations of money and goods to local schools and communities

Sumitomo Electric Wiring Systems, Inc.: Donation of school supplies and stuffed toys
in the United States● Donation of school supplies and stuﬀed toys

in the United States

75 CSR Report 2016

Program to Make Donations to University Courses

Basis for Management

Research on tsunami marine hazards at Graduate Schoolof Maritime Sciences, Kobe University

We will create preparations for
giant tsunami from the perspectiveof the sea
excellent university courses that contribute to social
development. One of them is research on hazardous
events that can occur by tsunami in the sea (tsunami

Dr.
Dr.
Satoshi Nakada Eiichi Kobayashi

Dr.
Mitsuru Hayashi

Specially Appointed
Assistant Professor

Associate professor

Professor Emeritus

marine hazards) at Graduate School of Maritime

Business Outline

Graduate School of Maritime Sciences, Kobe University

The SEI Group CSR Foundation makes donations to

Sciences, Kobe University. The research activities are
introduced below.

the wave height and flow velocity of tsunami and the

The Great Hanshin-Awaji Earthquake
motivated the research on marine hazards
Our research started with the establishment of the Marine

calculation with high resolution 3D tsunami simulation
technology using supercomputers. In addition, we arecalculating the amount of sediment resuspension to estimate
environmental pollution affecting the ecosystem.

which was the predecessor of the Graduate School of
Maritime Sciences, Kobe University , in 1997 after the Great
Hanshin-Awaji Earthquake. We were conducting researchcaused by huge earthquakes from the perspective of the sea
as well as land when the Great East Japan Earthquake
occurred.
While only the damage of giant tsunami on land tends to beconsidered, tsunami also causes damage to the sea where it
has occurred. We aimed to further accelerate the research

Aiming to send persuasive inform
information
based on visible data

study of disaster reduction. Then, we applied for the program
The data obtained as the outcomes of the research

Foundation in 2012. Our

conducted for three and a half years will be used as basic

Research course on tsunami

materials for future disaster reduction measures. Currently,

marine hazards was selected

they are applied to realize the practical use of a tsunami

and we started the course toevacuation manual for vessels as well as a tsunami dynamic

promote management of risks

hazard map that enables vessels to address the situation onin the sea from variousa real-time basis.

aspects with tsunami as the

A feature of our course is the enhanced cooperation network

theme in fiscal 2013.

with researchers from a wide range of fields including

Supply Chain

Image of risk factors in the sea
studied in this courseof the SEI Group CSR

Products & Services

and explore this field, which had not been addressed in theCore
Category

Development of an
integrated analysis
environment (HyOGO)
to analyze the impactof tsunami on themarine environment
and vessels

based on an idea that it is necessary to study disasters

Group's CSR Activities

Hazard Study Group at Kobe University of Mercantile Marine,

distribution of tsunami vortexes in Osaka Bay based on

Governance

We are now working to prepare a prediction map showing

economics, sociology and fisheries science in addition to

The Cabinet Office of Japan predicts that the probability ofNankai Trough Megaquake with a magnitude of 8 to 9
Nankai Trough generates a large-scale earthquake on a 100
to 150-year cycle, and the next earthquake would be the first

network to actively and continuously send persuasive data to
local governments and companies so that disaster of tsunami
caused by a giant earthquake can be reduced. Sea is a coreelement of economic activities in Japan. We will continue theresearch with a strong awareness that maintenance of safety
and security of the sea is a social contribution that helps
ensure safety and security of society.

major one that hits large cities along the sea including Osaka
Bay. In addition to direct onshore damage and offshore

Environmental
Preservation

occurring within 30 years is over 70%. The plate called

maritime sciences. It is our mission to use the extensive

Human Resources

To prepare for Nankai greatearthquakes that hit large cities

damage to vessels, huge tsunami would cause damage towater quality in surrounding waters. As the damage would
have long-term adverse impact on the Japanese society andeconomy, it is an urgent task to establish measures tominimize the damage and enable quick recovery inconsideration of all kinds of damage.

Example of a dynamic hazard
map in Osaka Bay

Study to understand hydro dynamical
phenomena related to vessels inan experimental tank

CSR Report 2016

Social Contribution

marine transportation and logistics and serious changes in76Promotion of CSR Activities in Aﬃliates

Sumitomo Rubber Industries, Ltd.

Sumitomo Wiring Systems, Ltd.

Tree planting activities (Tamba Romance Forest)

Performance of Yokkaichi Suwa-Daiko
Japanese drum by employees

Sumitomo Rubber Industries established the

To contribute to society, Sumitomo Wiring Systems (SWS),

Sumitomo Rubber Group's Basic Philosophy of CSR

which will be celebrating its 100th anniversary in 2017,

in 2008 out of the idea that it is necessary to clarify

aims to help supply safe, secure and eco-friendly cars to as
many customers as possible by producing products used in

the code of conduct in the Group's CSR activities assuch cars. In addition, we engage in various types ofa whole and further accelerate the management

communication with local residents to be a company thatthat pursues social value.

is rooted in the local community and loved by the people.
Our initiatives include support of sports activities of young

The Basic Philosophy consists of CSR Philosophy

people and local events, involvement of employees inand CSR Guidelines. Our CSR Philosophy declares

local disaster prevention activities and environmental

that through CSR activities we will become aconservation activities. We are also working to inherit thetraditional performing art of the historical Yokkaichi

corporate group that is trusted by society in a way

Suwa-Daiko Japanese drum as a company based inthat people see our continued existence as a

Yokkaichi. Our employees show the drum performance inpositive thing, and our CSR Guidelines specify what

local festivals and welfare facilities.

we should do based on the philosophy. The

In 2016, four companies located in Mie Prefecture
including SWS established a joint company to operate

guidelines are composed of five components,hydrogen stations to promote widespread use of fuel cellnamely Green (green initiatives), Ecology

vehicles and create environment-friendly local(ecological process), Next (next-generation productcommunities for the realization of a hydrogen society, andthe joint company began operations at its hydrogendevelopment), Kindness (kindness to employees)

stations. Meanwhile, we co-sponsored the G7 Ise-Shimaand Integrity (integrity for stakeholders), with theSummit Meeting held in Mie Prefecture, engaged

acronym being GENKI after the Group's GENKI

employees as volunteer interpreters and recruited two
players of PEARLS, a women's seven-a-side rugby team.

Activities, which are internal activities launched in

We have thus been committed to new sorts of activities to1988 to energize people.

contribute to local communities.

Based on the basic philosophy and guidelines of

We also encourage our Group companies in Japan and

CSR Activities, we develop new and unique CSR

overseas to establish and further enhance their social
contribution activities. At the annual SWS Harness Partners

activities, and create new value through business& Top Executives' Global Conference, we outline various

activities, to further enhance our social value andactivities developed by our affiliates according tothereby improve our economic value.

circumstances of the individual countries and regions andcommend the companies engaged in such activities. Those
activities are also introduced to other Group companies.

Web

77 CSR Report 2016

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

Web

https://www.sws.co.jp/en/csr/index.html

Basis for Management

Nissin Electric Co., Ltd.

Preparatory school for foreign preschool children

On-site science class forelementary school students using solar cars

To provide a basis for the fulfillment of our

In 2015, which was close to the 100th anniversary of

responsibility as a corporate citizen determined toits foundation, Nissin Electric drew up the basic policy

earn the trust of communities and society at large,

and focus areas of its social contribution activities. The

Sumitomo Riko established the corporate citizenshipbasic policy aim to accomplish our mission set in thepolicy stating Sumitomo Riko recognizes that we

corporate principles, Forge a bright future for bothbelong to the local community and, as a goodpeople and technology, by contributing to society

corporate citizen, make efforts to create a better

through our core businesses and also involving eachsociety through corporate citizenship activities.

employee actively in social contribution activities to

We position value-creating social contribution as anmake society a better place as a member of society.

activity that helps meet society's challenges and aim

Under the policy, we focus on the three areas of

to create value through corporate citizenship1) develop electrical engineers and other humanactivities addressing social issues, leading to theresources, 2) preserve historical and cultural assets

enhancement of corporate value. Moreover, we aremainly in Kyoto and 3) cooperate with local

active in the following five priority fields: 1)

environmental conservation activities.

contribution to diversity, 2) contribution to the soundOur initiatives for the develop electrical engineers anddevelopment of young people, 3) contribution toother human resources are wide ranging including

building community, 4) contribution to civil activities

organization of on-site science classes for elementaryand 5) contribution to the promotion of coexistenceschool students using solar cars in several locations inwith the natural environment.

Japan, as well as a scholarship program for students ofWe have started to operate a preschool for thegraduate schools in the electric field.

children of non-Japanese nationals residing in

For the preserve historical and cultural assets mainly in

Komaki City, Aichi Prefecture, who will enter

Kyoto, we endeavor to maintain and preserve

elementary school in the following year, inSekison-tei, a house where Junichiro Tanizaki, a literarycooperation with the Komaki Internationallegend, once lived, and also support the cultural asset

Association. In this preparatory school, volunteers

conservation activities developed by governments suchteach the children the basic Japanese reading andas Kyoto Prefecture and Kyoto City.

writing skills they will need at school and behavioral

As part of our cooperate with local environmental

norms at elementary schools so that they canconservation activities, our employees participate insmoothly adapt to life at school.

cleanup campaigns organized in the areas where theSumitomo Riko intends to continue this initiative thatworks of Nissin Electric are located, along with Gion

helps the youngsters be happy and enjoy school.

Festival Zero trash campaign, as volunteers.

Web

Web

Business Outline

Sumitomo Riko Company Limited

GovernanceGroup's CSR Activities
Core
Category
Products & Services
Supply Chain
Human Resources
Environmental
Preservation
Social Contribution

https://www.sumitomoriko.co.jp/english/csr/

http://nissin.jp/csr/index.html

CSR Report 201678

Independent Third Party Assurance Report

79 CSR Report 2016

Comments from an External Expert

My ﬁndings on the CSR activities and information disclosure by the Sumitomo Electric Group are as follows:
Commendable points■ Establishment of Corporate Governance Guidelines

In response to the start of application of the corporate
governance code, Sumitomo Electric established Corporate
Governance Guidelines setting forth its basic ideas and policy
concerning corporate governance in October 2015. In addition,
the Company increased the number of independent outside
directors to two, which is one of the priority issues in the code,and newly added an ROE target to the targets for VISION 2017.
This report makes it clear that all principles in the code are
implemented.
Corporate governance is an important behavioral principle fororganizations to achieve sustainable growth of business throughconsideration to stakeholders and healthy management. It is alsoessential for long-term maintenance of good CSR management.
Therefore, I commend Sumitomo Electric for having announced
its internal policies proactively ahead of other companies.
■ Development of measures to promote diversity

To promote diversity, which is one of its CSR core initiatives,
Sumitomo Electric developed various measures again this ﬁscal
year. I am especially impressed with the establishment of theaction plan for recruitment and appointment of women in
response to the Act on Promotion of Women's Participation andAdvancement in the Workplace enacted in March 2016. While
the Company has already addressed gender issues in theworkplace through such measures as the expansion of its
programs to support employees in balancing work and life, theaction plan presents quick and speciﬁc initiatives including
setting of numerical targets for the next two years. This is amajor commendable point for this ﬁscal year, along with theincreasing trend in the number of male workers who takechildcare leave and/or take leave when their spouses give birth,which demonstrates the eﬀectiveness of the measures topromote diversity. In addition, the number of male and female
employees by region on a consolidated basis, which serves asbasic data for measures related to diversity, is published fromthis ﬁscal year. I pay respect to the eﬀorts of those who steadily
worked to establish the information collection system.

are also disclosed to demonstrate that the problems in safety
management have been identiﬁed properly. I hope that theeﬀorts to eliminate occupational accidents are continuously
made.
■ Strengthening of the risk management systemon a global scale
Risk management initiatives including BCP and information
security measures were steadily developed on a global scale,and the group-wide risk management system was strengthened. I
hope that the eﬀorts are enhanced in the future to ensure that arisk management system is established at the same level to thatof the parent company throughout the Group.

Aspects needing improvement■ Expansion of the reporting boundary

Although steady improvement is made every year, expansion of
the reporting boundary to provide information on a consolidated
basis is still a signiﬁcant challenge for CSR management in theGroup. For example, with respect to employment rate of thephysically or mentally disabled, which is subject to regulation in
Japan, it is preferable to grasp and disclose the status in all
Group companies in Japan. While most of the personnel-related
data are disclosed on a non-consolidated basis at present, there
is a lot of room for improvement in this situation. An integrated
information collection system should be established to ensurethat such information can be managed on a group-wide basis.
■ Improvement of initiatives outside Japan

I hope that overseas Group companies enhance their initiatives
in the future. In particular, while Group policies for promotionof diversity are presented in the dialogue of the two presidents,
indicators of the progress like KPI should be shared across theGroup. I also suggest that overseas bases are included in theboundary of the initiatives to create safe and soundworkplace for the promotion of fair labor practices.

■ Safety management of workplace

The record on thorough implementation of measures toeliminate occupational accidents, which I pointed out as an
aspect needing improvement in the previous ﬁscal year, showed
substantial improvement. This ﬁscal year, although the target on
accidents involving injury was not achieved, the number of
injuries resulting in lost work time was reduced almost by half,
and it seems that the four priority safety activities have madecertain progress. The results of analysis of injuries by situation

Professor, Faculty of Economics,
Sophia University

Yoshinao Kozuma

Sumitomo Electric's Response to the Findings
We thank Professor Yoshinao Kozuma for providing suggestive opinions on our Group's CSR activities and information
disclosure.
Professor Kozuma gave a high mark to our eﬀorts for the establishment of Corporate Governance Guidelines. We will
strive to further enhance our corporate governance in order to achieve sustainable growth and medium- and long-term
improvement of our corporate value. For the development of measures to promote diversity, we will steadily implement
the action plan to achieve the targets set on recruitment and appointment of women . In addition, we will makecontinuous eﬀorts to materialize the Global HRM Policy. As to safety management of workplace, while we assume thatour priority safety activities made certain results as indicated by Professor Kozuma, we will be continuously committed toinitiatives to become a company with the highest level of safety. For strengthening of the risk management system on a

Yoshitomo Kasui
Managing Director
and Chairperson of
the CSR Committee

global scale, we will also continue to promote activities to establish a risk management system throughout the Group.
As to the items identiﬁed as aspects needing improvement, we will intensify our eﬀorts for expansion of the reporting
boundary and improvement of initiatives outside Japan. We will further develop our CSR activities so that our
stakeholders enhance their understanding of our activities and attach a higher value to them.

The Findings by an External Expert in this English version are a translation of the original text in the Japanese version.

CSR Report 2016

80

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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［Published November 2016］