Sustainability Promotion Structure/External Assessments

Sustainability Promotion Structure

Today, initiatives aimed at realizing a sustainable society are gathering speed around the world and the role of companies in these initiatives is increasing. Amidst this, the SDGs are a universal set of goals that both developing and developed countries are working to achieve. Japan, too, is advancing proactive efforts toward the SDGs.

Our Group has incorporated SDGs as one component of our corporate policies. We are aware of the influences that our corporate activities have on society, and of our social responsibilities. In order to meet these responsibilities, we propose, deliberate and decide on measures that contribute to the formation of a sustainable society, including those involving SDGs. We have established our Sustainability Promotion Committee in order to execute these efforts continuously and Company-wide, and have created our Basic Policy on Sustainability Promotion, under which we have begun a variety of initiatives with partnerships throughout our whole group. In strengthening our initiatives with respect to climate change, we have formulated Environmental Vision for 2050 (net zero), adding SDG 13 on taking specific measures against climate change to our Group’s priority SDGs, increasing our priority areas from “5+1” to “6+1”.

The committee passed a resolution of agreement with TCFD, and we have begun responding accordingly.

In addition, we will further promote our carbon neutral (CN) initiatives in the future. In July 2021, we reorganized the Environmental Impact Reduction Committee into the Carbon Neutrality Promotion Committee to strengthen and promote carbon neutrality.

At the same time, the Energy Conservation Subcommittee was reorganized into the CN Technology Review Subcommittee in order to promote activities that contribute to CN and to conduct more specialized research and studies on technologies that contribute to CN.

And moreover, we continue to pursue efforts with regard to corporate social responsibility (CSR) primarily through responsible care*1 initiatives centering on our Responsible Care Committee and Carbon Neutrality Promotion Committee. From our Corporate Management Department to our Research & Development Departments and each business site, we are engaged in a range of initiatives through Company-wide partnerships. Given the inseparable relationship between sustainability and CSR (because it is through executing our corporate activities while keeping mindful of sustainability that we fulfill our corporate social responsibilities), our Group intends to improve sustainability by undertaking various CSR activities contributing to SDGs.

Basic Policy for Promoting Sustainability

We solve social issues and achieves sustainable growth and value creation under a structure comprised of our Sustainability Promotion Committee (which is chaired by the President) and its subcommittees based on our Business Philosophy, which esteems the Sumitomo’s Business Philosophy and sets forth our management principles.
We regularly and comprehensively verify the extent of the progress made by these committees, based on which we continuously revise the contents of our activities and actively improve upon them. We widely announce the results of our activities within the company and outside it in aiming for communication with our stakeholders.

Policy on Responsible Care Activities of Group of Sumitomo Bakelite Co., Ltd. Group

Philosophy

In all its operations, Sumitomo Bakelite Co., Ltd. will contribute to the sustainable development of society while promoting business activities by meeting the highest standards of the Responsible Care concept and giving due consideration to environmental preservation, human health and safety as well as product quality.

Policy

Evaluate the safety, health, and environmental aspects throughout the entire life cycle ofa product, from product design to the procurement of raw materials through disposal, strive to minimize the environmental impact of our corporate activities, and undertake to develop safer products and technologies;
Make sustained, group-wide efforts to promote resource and energy conservation, waste reduction and biodiversity conservation;
Perform Environmental, Safety & Health Audit and Quality Assurance Audit as well as work to maintain and improve systems for managing environmental protection, safety promotion and disaster prevention, worker safety and health, and quality management;
Comply with all relevant laws, regulations and agreements associated with safety, health, the environment, and chemicals while autonomously establishing administrative rules with the aim of strengthening management capacity, so as to improve environmental, health and safety conditions for society, customers, and employees;
Work to ensure and improve the safety of raw materials, products, transportation operations and process safety, and provide product safety information to employees, customers, and others;
Promote continuous improvement in security over facilities, processes and technologies, and implement operational safety management programs to ensure the safety and health of employees and residents of local communities;
Publicly disclose information on the environment, safety and products to and promote dialog with interested parties such as customers, employees and residents of local communities, so as to identify their needs and deepen mutual understanding and trusting relationship;
In order to ensure environmental preservation, human health and safety as well as product quality, provide employees with training to develop necessary human resources for that end.

External assessments

FTSE Blossom Japan Index

An index established by FTSE Russell, a worldwide provider of market indexes.
It is composed of Japanese companies selected for superb handling of ESG.
Selected from among the shares on the FTSE Japan Index, it is designed to contain a distribution of industries equal to that of the Japanese stock market.
Our Company had a comprehensive evaluation (ESG score) of 3.0 as of December 2020.

S&P/JPX Carbon Efficient Index

A joint-brand index for the Tokyo Stock Exchange of S&P Dow Jones Indices LLC and our stock exchange group (JPX) selected from among TOPIX shares, it is weighted toward companies with outstanding carbon efficiency and environmental information disclosure.
Our Company has received a decile class rating of 2 and an information disclosure status rating of “Disclosed.”

EcoVadis Sustainability Rating 2021: Gold

EcoVadis SAS was established in 2007 as an institution that evaluates the ESG efforts of companies in order to improve the environmental and social practices of companies across their whole supply chains.
Thus far, it has assessed approximately 75,000 companies in 200 industries and 160 countries in terms of their policies, measures taken and performance in the four categories of environment, labor & human rights, ethics, and sustainable resource procurement.
EcoVadis confers its Gold rating only on companies performing within the top 5% of the plastic manufactures it evaluates.

CDP “Climate Change 2020”

Established to carry out activities seeking information disclosure from corporations on their greenhouse gas emissions and efforts to counter climate change, CDP has been measuring and managing the environmental impact of industry since its start in 2000.
Approximately 9,600 companies have disclosed climate change information (2020 data), and CDP scores companies’ environmental performance on a scale topped by the “A” rating.
Our Company has received a score of A^-.

ACDP Water Security 2020

CDP Water Security is a program seeking disclosure of information on risks affecting water security.
Companies compile their own statistics on items including the volume of water we consume, wastewater emitted and processing methods, which is useful in understanding data on water stress.
Our Company has received a score of B^-.

BSOMPO Sustainability Index

In 2021, our Company was selected for inclusion for the second consecutive year in the SOMPO Sustainability Index, established independently by Sompo Asset Management Co., Ltd.
The roughly 300 shares comprising the index are selected each year for outstanding environmental, social and governance (ESG) performance.
The index is used for the SOMPO Sustainable Operation program.

Next-generation Certification Mark (Kurumin)

In December 2015, we received certification as a company that supports childrearing, and have received the Next-generation Certification Mark (Kurumin) for a second time.
This is a system in which the Minister of Health, Labor and Welfare certifies business operators who formulate and implement action plans based on the Act on Advancement of Measures to Support Raising Next-Generation Children, and who satisfy all certification conditions.