Sumitomo Chemical Sustainability Data Book 2021

For a Sustainable Future

Governance

Environment

Society

Contents

Environment

Contributing to the SDGs through

Environmental Activities

Contents

103 Environmental Activity Goals and Results

  1. Addressing Climate Change
  1. Environmental Protection
  1. Protecting the Atmospheric Environment
  2. Protecting the Aquatic Environment
  1. Resource Saving and Waste Reduction
  2. Biodiversity Preservation Initiatives

125 Appropriate Management of Chemical Substances

  1. Protecting the Soil Environment
  2. Environmental Activities: Supplementary Data

126

1

Addressing Climate Change

128

2

Environmental Protection

102

Sumitomo Chemical Sustainability Data Book 2021

For a Sustainable Future

Governance

Environment

Society

Contents

Environmental Activity Goals and Results

Goal achieved or steadily progressing:    Goal not achieved:

Items

Boundary

Goals

Fiscal 2020 Results

Evaluation

Page

Addressing

Greenhouse gas

Sumitomo Chemical

Reduce 30% compared to

Reduced 22% relative to

Climate

emissions

Group

fiscal 2013 levels by fiscal 2030

fiscal 2013

Change

Scope 1+2*1

Consolidated

Reduce more than 57%

compared to fiscal 2013 levels

by fiscal 2050

Scope 3*2

Sumitomo Chemical's

Reduce overall GHG emissions

Held Supplier briefing online

major suppliers*3

by fiscal 2024

due to the COVID-19 pandemic

Conduct engagement to set

goals

Unit energy

Sumitomo Chemical

Improve more than 3%

Increased 3% relative to

consumption*4

Group

over the three years of the

fiscal 2018

Consolidated

Corporate Business Plan

(fiscal 2019-2021)

Unit energy

Sumitomo Chemical

Improve over 1% per year on

Improved by an annual average

consumption

and Group companies

average over five years

of 0.9% over five years

in the logistics

in Japan*5

division

Pages

105-116

Note: Further details on goals based on the Act on the Rational Use of Energy and results are provided in the supplementary data (pages 126-127).

*1 Scope 1: Direct emissions from factory operations, such as fuel use in manufacturing processes Scope 2: Indirect emissions from purchases of power and heat from outside the factory

*2 Scope 3: Emissions from the manufacturing and transportation of purchased raw materials

*3 Covers suppliers accounting for 90% of procured raw materials and other items based on weight *4 Energy consumption divided by consolidated net sales

*5 Within the scope of specified shippers according to the definition stipulated under the Act on the Rational Use of Energy

103

Sumitomo Chemical Sustainability Data Book 2021

For a Sustainable Future

Governance

Environment

Society

Contents

Environmental Activity Goals and Results

Environmental Activity Goals and Results

Goal achieved or steadily progressing:    Goal not achieved:

Items

Boundary

Fiscal 2020 Goals

Fiscal 2020 Results

Evaluation

Fiscal 2021 Goals

Page

Environmental Protection

Severe environ-

Sumitomo Chemical

mental accidents

and Group compa-

nies in Japan

Laws and

Sumitomo Chemical

regulations, etc.

Environmental

Sumitomo Chemical

protection

and Group compa-

management

nies in Japan

methods, etc.

Prevention of

Sumitomo Chemical

air and water

pollution

Effective use of

Sumitomo Chemical

water resources

Group companies

overseas

Response to PRTR

Sumitomo Chemical

Sumitomo Chemical

and Group compa-

nies in Japan

Reduction of VOC

Sumitomo Chemical

emissions

Prevention of soil

Sumitomo Chemical

and groundwater

and Group compa-

contamination

nies in Japan

Prevention of

Sumitomo Chemical

ozone layer

and Group compa-

depletion

nies in Japan

Conservation of

Sumitomo Chemical

Biodiversity

Reduce the

Sumitomo Chemical

amount of

industrial waste

Sumitomo Chemical

sent to landfills

and Group compa-

nies in Japan

Properly treated

Sumitomo Chemical

PCB waste

and Group compa-

nies in Japan

0

Properly respond to more stringent laws and regulations and proactively address trends in new environmental regulations

Provide individual support to Group companies for responding to environmental regulations

Meet voluntary management criteria*1

Promote effective and efficient use of water resources

Improve unit water consumption by at least 1% on average per year

Maintain 60% lower total emissions relative to fiscal 2008

Maintain total emissions of air and water pollutants at below fiscal 2015 levels to fiscal 2020

Maintain VOC emissions reductions at 30% relative to fiscal 2000

Keep hazardous materials strictly within Company premises*2

  • Eliminate the use of refriger- ation units that use CFCs as coolants by fiscal 2025
  • Eliminate the use of refriger- ation units that use HCFCs as coolants by fiscal 2045

Ensure compliance with "Sumitomo Chemical's Commitment to the Conservation of Biodiversity"

Maintain 80% reduction compared to fiscal 2000 levels

Maintain waste volume at below fiscal 2015 levels to fiscal 2020

  • (High concentrations of PCB*3) Work toward appropriate storage and recovery of waste containing high concentra- tions of PCBs and complete PCB waste treatment at an early stage
  • (Minute amounts of PCB*4) Work toward appropriate storage and recovery of waste containing minute amounts of PCBs and complete PCB waste treatment by March 2025

0

Studied and responded to amendments to the PRTR Act, the Act on Rational Use and Proper Management of Fluorocarbons, and the Air Pollution Control Act (asbestos). Thoroughly discussed legislation to ease or tighten regulations with the National government.

Provided individual support related to the Waste Management and Public Cleansing Law, the Soil Contamination Countermeasures Act, the Act on Rational Use

and Proper Management of Fluorocarbons and the PRTR Act.

There were three instances of the legal standard limit being exceeded etc. We have investigated the causes and taken countermeasures.

Water usage reduced by 6.7% relative to fiscal 2019

Unit water consumption worsened by 4.9% relative to fiscal 2015

Reduced emissions by 90.2% relative to fiscal 2008

Reduced emissions by 24.3% relative to fiscal 2015

Reduced emissions by 55.8% relative to fiscal 2000

Continued to keep hazardous materials strictly within Company premises

Systematically replaced refrigeration units that use CFCs and HCFCs as coolants

Ensured compliance with "Sumitomo Chemical's Commitment to the Conservation of Biodiversity" and promoted detailed initiatives

Reduced by 93% relative to fiscal 2000

Increased by 1.5% relative to fiscal 2015

  • (High concentrations of PCB) Sumitomo Chemical: Completed treatment Group companies in Japan: Continuing treatment; continued to promote the storage and recovery of untreated waste
  • (Minute amounts of PCB) Implemented the treatment of waste containing minute amounts of PCBs at certain factories; continuing to promote the storage and recovery of untreated waste

0

Properly respond to more stringent laws and regulations and proactively address trends in new environmental regulations

Provide individual support to Group companies for responding to environmental regulations

Meet voluntary management criteria

Promote effective and efficient use of water resources

Improve unit water consumption by at least 1% on average per year

Maintain 60% lower total emissions relative to fiscal 2008

Maintain total emissions of air and water pollutants at below fiscal 2015 levels to fiscal 2021

Maintain VOC emissions reductions at 30% relative to fiscal 2000

Keep hazardous materials strictly within Company premises

  • Eliminate the use of refriger- ation units that use CFCs as coolants by fiscal 2025
  • Eliminate the use of refriger- ation units that use HCFCs as coolants by fiscal 2045

Ensure compliance with "Sumitomo Chemical's Commitment to the Conservation of Biodiversity"

Maintain 80% reduction compared to fiscal 2000 levels

Maintain waste volume at below fiscal 2015 levels to fiscal 2021

  • (High concentrations of PCB) Work toward appropriate storage and recovery of waste containing high concentra- tions of PCBs and complete PCB waste treatment at an early stage
  • (Minute amounts of PCB) Work toward appropriate storage and recovery of waste containing minute amounts of PCBs and complete PCB waste treatment by March 2025

Pages

117-125

Note: Further details are provided in the supplementary data (pages 128-147).

*1 Voluntary management targets that are stricter than the mandated levels and criteria of relevant laws and regulations, including agreements reached with local authorities. *2 Keep hazardous materials strictly within Company premises: Controlled on the premises.

*3 High concentrations of PCB: Polychlorinated biphenyl (PCB) intentionally used as insulation oil in such items as electric appliances

*4 Minute amounts of PCB: PCB unintentionally mixed in as insulation oil in such items as electric appliances (over 0.5 mg/kg)

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Sumitomo Chemical Sustainability Data Book 2021

For a Sustainable Future

Governance

Environment

Society

Contents

Addressing Climate Change

Basic Stance

Sumitomo Chemical considers climate change a pressing challenge facing society. To address this problem, we are actively working to respond to risks and to seize opportunities by utilizing the technology we have cultivated as a diversified chemical company. In addition, regarding disclosure related to climate change, we will continue gaining the trust of society by actively raising awareness of our initiatives using the framework of the TCFD recommendations.

Furthermore, with movements aimed at achieving carbon neutrality picking up steam in recent years, the chemical industry is being strongly called upon to create innovation and contribute to the achievement of carbon neutrality for society at large through its businesses. Through the newly established Carbon Neutral Strategy Council and the Carbon Neutral Strategy Cross- functional Team, our company will formulate and implement a carbon neutrality strategy that address both our obligation to bring our own greenhouse gas (GHG) emissions close to zero, and the contribution we can make to promoting carbon neutrality for society as a whole through our technologies and products.

Sumitomo Chemical Carbon Neutral Strategy Perspectives

Sumitomo Chemical aims to take a range of multifaceted approaches unique to a diversified chemical company, in our initiatives to achieve carbon neutrality by 2050 from the following four perspectives.

To minimize greenhouse gas (GHG) emissions associated with the Group's production activities through innovation, and provide and deploy new technologies across the world.

To drive innovations for GHG emissions reduction regarding materials used in society, and provide products and solutions that contribute to carbon neutrality from a Life Cycle Assessment* perspective.

To actively engage in the development of technologies for recovery, separation, use and storage of GHGs emitted from other industries and from communities, and help the process by becoming part of a system that implements such technologies in society.

To take on the long-term challenge of developing carbon negative technologies to reduce the absolute volume of GHG in the atmosphere.

  • Life Cycle Assessment (LCA): A method for quantitatively assessing the environmental impact of a certain product or service across its entire life cycle, from the procurement of raw materials to its use and disposal.

105

Sumitomo Chemical Sustainability Data Book 2021

For a Sustainable Future

Governance

Environment

Society

Contents

Addressing Climate Change

Addressing Climate Change

Management System

In order to achieve carbon neutrality by 2050 for the Sumitomo Chemical Group, and also to contribute to the achievement of carbon neutrality in society at large, Sumitomo Chemical established the Carbon Neutral Strategy Council (February 2021) to formulate and promote an integrated strategy, with the goal of publishing a strategy during 2021. Previously, the Sustainability Promotion Committee and the Responsible Care Committee, which consisted of members gathered from a wide range of related departments and were both chaired by the company's president, would analyze information and risks relating to climate change, make decisions on important issues, and push forward specific responses, but since the establishment of the Strategy Council, these two committees have also taken on the role of supporting the council in formulating its strategy, and then promote the implementation of that strategy as well.

  • Organization of Addressing Climate Change

Board of Directors

Report

Advise

Report

Advise

Responsible Care Committee

Sustainability Promotion Committee

Report Advise

Items relating to the formulation and

Chairman: President

Vice

Chairpersons: Executive officer in charge of legal & corporate general affairs

Executive officer in charge of

Responsible Care

Members:

Executive officers in charge

of each business sector and

corporate departments and the

heads of each Works

Secretariat

(Responsible Care Dept.)

Report Advise

Chairman: President

Members: Executive officers in charge of each business sector and corporate departments

Presidents of overseas regional headquarters

Observers: Chairman of the Board Outside Directors Standing Corporate Auditors Outside Corporate Auditors

Secretariat

(Sustainability Dept.)

Report Advise

implementation of a carbon neutrality strategy

Advise

Carbon Neutral Strategy Council

(Consists of members of

Report

management meetings)

Carbon Neutral Strategy

Cross-functional Team

(Administrative office for the Council)

Corresponding and Internal Meetings

A wide range of specific issues related to energy and greenhouse gases (GHGs) are taken up for detailed discussion at Company- wide Science Based Targets (SBTs) GM Meetings, SBT Promotion Working Groups, Company-wide Energy Manager Meetings, Department Liaison Meetings on Global Warming, Group Company Information Exchange Meetings, and other gatherings. Through the establishment of these various meetings, we have created a system capable of steadily and swiftly sharing important information in addition to managing energy and GHGs for Works, research laboratories, business sectors, and Group companies.

Meeting

Coordinator

Members

Content

Company-wide SBTs GM

Executive officer responsible for

General managers in charge of SBTs at individual worksites

Discussing various measures

Meeting

Responsible Care

aimed at achieving SBTs

Process & Production Technology

Corporate Planning Office, Research Planning and Coordination

SBT Promotion Working

Department, Process & Production Technology & Safety Planning

Proposing various multi-faceted

Group

& Safety Planning Department

Department, Responsible Care Department, and Environmental

measures to achieve SBTs

general manager

Burden Reduction Technology Development Group

Company-wide Energy

Responsible Care general

Section managers in charge of Energy and GHGs at their

Sharing and spreading informa-

Manager Meeting

manager

worksites

tion on initiatives at each worksite

Department Liaison Meeting

Responsible Care general

Section managers in charge of climate change action at the

Sharing Company-wide policies

on Global Warming

manager

departmental and corporate levels

and ESG issues

Group Company Information

Executive officer responsible for

Managers in charge of climate change action for Group

Sharing Group policies and issues

Exchange Meeting

Responsible Care

companies

and promoting best practices

106

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Sumitomo Chemical Co. Ltd. published this content on 27 October 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 29 October 2021 08:18:03 UTC.