DE&I Promotion

Policy and Basic Approach

In September 2022, the Group of Sumitomo Bakelite Co., Ltd. declared that it would be promoting Diversity, Equity, and Inclusion (DE&I). In line with the DE&I Policies, we are working toward the realization of a company where diverse human resources can demonstrate their individuality and abilities, where fair opportunities are provided to each individual in accordance with his/her circumstances, and where they can actively work with mutual understanding and respect.

With the first step of promoting the active participation of women, we will make our Company a place where diverse human resources, such as employees with limited employment due to nursing care or disabilities, foreign nationals with different cultural backgrounds, and LGBTQ people, can play an active role.

As we embrace DE&I, employees with diverse perspectives can work as a team by combining their different views and maximizing their unique strengths to encourage innovation.

DE&I Policies

1. Promotion of Diversity, Equity, and Inclusion (DE&I) is defined and enforced as one of our Group’s priority management actions.
2. With a starting point to focus on empowering women to play more active roles, promote various initiatives to empower diverse employees to play greater roles in the company.
3. Provide work-and-life balancing support schemes and allow the employees to select from diverse ways of work to help them accommodate various life stage events.

Systems (Governance)

The DE&I Promotion Office was established as a specialized department within the Personnel Division. Representatives from each business site in Japan and from Group companies also belong to the department to promote DE&I throughout the Group of Sumitomo Bakelite Co., Ltd.

Important items are reported at the Sustainability Promotion Committee under the supervision of the Board of Directors.

Risk Management

The identification, assessment, and management of risks and opportunities related to human capital pertaining to our Group (including DE&I promotion) are carried out in accordance with the risk management structure and risk management processes described on the following page.。

Risk Management

Metrics and Targets

Initiatives to promote the advancement of women

We are committed to promoting the advancement of women as the first step toward embracing diversity. We have set the percentage of female management staff and the percentage of new fathers taking childcare leave as KPIs(Key Performance Indicators).
Increasing the percentage of female management staff means we are enabling employees to maximize and make effective use of their skills, regardless of gender. In order to create an environment where women can have successful careers while raising children, it is vital for men to take an active part in childcare and homemaking. The percentage of new fathers taking childcare leave is an indicator of our efforts to create a flexible working environment where employees can take time off work as required.

Percentage of female management staff

As well as expanding our systems, we are working to foster a workplace culture that makes it easy for employees to use these systems, and putting in place a workplace environment enabling them to continue working through all stages of life. Managers are given training in development of female employees, addressing the tendency for childcare responsibilities to affect career progression. In this way, we aim to give female employees opportunities to think independently about their careers and decide their own career paths.
At the end of FY2024, the percentage of female management staff was 4.25%. We will continue to work on improving this ratio, with a target of 5% by FY2026 and 10% by FY2030.

● Trends in the Proportion of Female Management Staff

Notes:
1. Applies to management staff excluding Executive Officers.
2. Figure for Sumitomo Bakelite Co., Ltd. (non-consolidated basis).
3. Includes those seconded to other companies with qualifications as managerial staff.
4. The data shown is as of March 31 of each year.

Percentage of new fathers taking childcare leave

We are working on various initiatives, aiming to provide a workplace where everyone, regardless of gender, can find a balance between “working” and “bringing up children”. As part of this, parents can take the first five days of parental leave—a period of leave designated separate from childcare leave— as paid leave (100% payment).
We are also focusing on awareness-raising activities to change attitudes, such as implementing training programs to help employees balance work and childcare, and sharing the experiences of male employees who have taken childcare leave.
There was a huge increase in FY2024, with 84.0% of new fathers taking childcare leave. We will continue to work on improving this ratio, with a target of 90% by FY2030.

● Trends in the Ratio of New Fathers Taking Childcare Leave

Notes:
1. Figure for Sumitomo Bakelite Co., Ltd. (non-consolidated basis).
2. Figures up to FY2023 include employees seconded to other companies (previously published values).
3. Figures for FY2024 do not include employees seconded to other companies (changed based on advice from the Tokyo Labor Bureau ).
If calculated on the same basis as the figures up to FY2023, the figure for FY2024 would be 86.2%.

Promotion of mid-career recruitment

Respect for diversity is one of our key management issues, and we are promoting mid-career recruitment as one of the specific initiatives within this area. The percentage of mid-career hires has been set as a KPI and we are actively working to increase it.
We believe that people with experience and expertise from other companies bring fresh perspectives and ideas that can stimulate and inspire colleagues in the workplace, leading to innovation and revitalization of the organization as a whole. This is why we are working to create an organization that welcomes employees with diverse backgrounds and career histories.
In FY2024, the percentage of mid-career hires reached 43%. We have set a target of 50% by 2030. We will continue to strengthen our efforts to recruit diverse human resources and help them succeed.

● Trends in the Percentage of Mid-Career Hires in Career-Track Positions

Notes:
1. Figure for Sumitomo Bakelite Co., Ltd. (non-consolidated basis).
2. Percentage of mid-career hires is based on the total number of people hired to career-track positions in the relevant fiscal year.
3. Does not include persons seconded from other companies or employees reassigned from subsidiaries or affiliates in Japan.

Continued employment of retirees

We aim to create an environment where employees can make the most of the knowledge and experience they have gained in the course of their careers and play active roles for longer.
As part of this, we have introduced a system allowing employees who have reached the mandatory retirement age of 60 to continue working as contract employees. As well as ensuring that specialized knowledge, technical skills, and expertise cultivated over many years at the Company are passed on to the next generation, this system will strengthen the organization as a whole.

● Trends in Continued Employment of Retirees

Notes:
1. For the rehiring ratio, the first decimal place was rounded to the nearest whole number.
2. Figure for Sumitomo Bakelite Co., Ltd. (non-consolidated basis).

Employment rate of people with disabilities

Our Company considers the employment of people with disabilities, as stipulated by law, to be an integral part of corporate social responsibility. While giving the necessary consideration to enabling those with disabilities to carry out their work, we endeavor to offer workplaces that are as safe and secure for those with disabilities as they are for others, and that allow employees to continuously hone and cultivate their skills.

We are also making continuous efforts to employ new graduates with disabilities by, for example, accepting students with disabilities for internships so as to provide them with opportunities that suit their conditions and work-style needs.

● Trends in the Ratio of Employees with Disabilities

Notes:
1. The employment rate of people with disabilities for each fiscal year is calculated by dividing the total number of persons with disabilities as of the first day of each month by the total number of regular employees as of the same day.
2. From April 2024, the statutory employment rate has increased to 2.5%.
3. Figure for Sumitomo Bakelite Co., Ltd. (non-consolidated basis).
4. Includes employees seconded to other companies.

Other quantitative information relating to DE&I promotion

See the page below for details of quantitative information relating to DE&I.

Detailed Data Related to Sustainability (Society)

Key Initiatives

1. Women’s empowerment working group

In FY2024, we held round-table discussion sessions between female and male employees to deepen mutual understanding and shared issues related to the advancement of women. These sessions are open to employees from business sites and Group companies in Japan, and a total of 293 people (144 female and 149 male) have taken part.

The measures below have been implemented in response to the views of participants. Going forward, we will continue to foster a culture where employees can be fulfilled in both their work and personal lives.

Introduce new employee benefit services
Establish guidelines for sending emails outside of working hours
Showcase examples of using in-house systems
Provide opportunities to find out about the experiences and perspectives of successful women within and outside the Company
Showcase case studies of business reform

2. Opportunities to find out about the experiences and perspectives of successful women within and outside the Company

We provide opportunities to find out about the experiences of successful women outside the Company, in order to reduce anxiety about work and raise awareness of career development. We invited the winner of the “Woman of the Year: New Role Model in Science Award” to give a lecture to female career track employees. The speaker talked about her ideas at each stage and how she developed her career, which was very inspirational to the participants, giving them a valuable opportunity to reevaluate their own careers.

We also held a discussion meeting with female executives from our Company. The participants had a lively discussion, exchanging questions and honest opinions. It was a very meaningful meeting, sharing ideas about balancing work with family life, career difficulties, long-term career planning, and more.
Through these initiatives, we are working to create an environment where female employees can feel confident in their careers and take on challenges with a positive mindset.

3. Promoting understanding of LGBTQ people and establishing systems

We are promoting various initiatives to deepen understanding of LGBTQ people and create a workplace environment with respect for diversity.

As part of this, we provide annual e-learning for all employees to learn about basic knowledge, behavior, and workplace considerations. This allows each and every employee to deepen their understanding of LGBTQ people, helping to foster a corporate culture of mutual respect.

In FY2024, we established “new regulations to recognize same-sex partners” as family members and ensure that non-statutory employee benefit systems can be used equally as far as possible.

We aim to create a workplace where everyone can work happily and achieve their full potential.

4. Support for people with disabilities

Internship program for schools for the deaf and special needs schools

We offer internships for students with disabilities. In FY2024, students studying programming had the opportunity to experience management system development at our Head Office. Students with hearing impairments joined a sign language group run by volunteers within the Company, helping to deepen communication between employees across departments. At production sites, the program allows students to experience our Company operations, including hands-on experience of manufacturing.

As well as helping students with disabilities to broaden their career horizons, these internships are a valuable reminder of the potential of diverse human resources for the Company. We will continue to actively provide such opportunities to ensure that employment options are not limited by disabilities, working toward a society where everyone can work in a way that suits them.

Information sharing across business sites

We share information across our business sites and Group companies in Japan, in order to create better working environments for employees with disabilities. Through this initiative, by sharing examples of adaptations and employee growth at each business sites, these can be rolled out to other business sites. This will help us to further harness the potential of employees with disabilities, laying the foundation for expanding job opportunities and diversifying work. We will continue to strengthen cooperation between business sites and strive to improve the working environment.

5. Completion of new welfare facilities

A new welfare facility was opened in September 2024 at our Shizuoka Plant .
The building has a calm exterior based on shades of brown, large windows to make effective use of natural light, and an environmentally-friendly design including LED lighting and solar panels on the roof. It is designed to be accessible for all, with facilities like elevators and multi-purpose toilets.
The facility has several communication spaces with creative features such as varied types of desks and seating in each room. A gallery of environmental products is being installed on the first floor.
We will strive to make this a pleasant space for customers and employees to encourage conversation, creativity, and communication.

6. Awareness and awareness activities

In order to create an environment in which each employee can demonstrate their abilities by embracing diverse values, we conduct various awareness activities, such as awareness of the importance of DE&I promotion and support systems.

Education to promote understanding of DE&I (1)	Directors and managers learned about the importance of promoting DE&I from a management perspective. (Nov. 2022, 67 participants)
Education to promote understanding of DE&I (2)	All employees learned the necessity of promoting DE&I and the significance of realizing an organization where diverse human resources can flourish. (Aug. 2024, 3,369 participants)
Diversity management education	With line section chiefs as the main target, employees learned about the necessity of promoting diversity and opportunities for women as well as specific methods of individual management. (Dec. 2022 to Dec. 2023, 63 participants)
Unconscious bias education	With line section chiefs as the main target, employees learned about reducing negative impacts of unconscious bias and creating a workplace environment where diverse subordinates can actively work. (Dec. 2023 to Nov. 2024, 31 participants)
Support for balancing work and childcare	In order to create a workplace where employees can balance work with childcare responsibilities and be supported by those around them, participants learned about the necessity of new fathers taking childcare leave and the positive impact of this on their work. (Nov. 2023 to Nov. 2024, 180 participants)
Female leaders’ education	Female managers learned the roles required for leaders and the specific skills that leaders should acquire. (Oct. 2023, 18 participants)
Smart working education	In this training for female employees in non-management positions, participants were encouraged to think about future work styles and careers from multiple perspectives and how to achieve a good work-life balance. (Dec. 2023, 17 participants)
Female health support education	The participants deepened understanding within the Company about female health issues that are difficult to understand due to the differences among individuals. (Feb. 2024, 3,287 participants)
Education to support balancing work and fertility treatment	The participants learned about points to consider for building a workplace for employees who wish to undergo fertility treatment and continue working. (Jan. 2025, 3,454 participants)
Education for balancing work and nursing care	Participants learned about the basics of nursing care and how to balance caring responsibilities with work. ((1) Mental preparation: May 2024, 102 participants; (2) System utilization: Aug. 2024, 104 participants; (3) Long-distance caregiving: Nov. 2024, 100 participants; (4) Financial preparation for nursing care: May 2025, 123 participants)
LGBTQ education	All employees were invited to participate in an e-learning program to deepen their understanding of LGBTQ people and the awareness necessary to create a work environment that is comfortable for everyone. (Sept. 2024, 3,429 participants)
Becoming a company where people with disabilities can play an active role	The participants deepened their understanding of creating a workplace environment where people with disabilities can work comfortably and exert their potential to realize an inclusive society. (Mar. 2025, 3,413 participants)