Climate Change Data

Environmental Metrics

ESG Focus Areas

• Global warming
• Depletion of resources
• Increasingly frequent and severe disasters
• Disrepair and aging of social infrastructure
• Increased need for safe and comfortable mobility and transportation
• Increased importance of open innovation
• Increasing importance of diversity and inclusion
• Increasing importance of employee health and work accommodations
• Cyberattacks and leakage of information
• Workplace safety and increase of workplace risks
• More prevalent CSR risks in supply chain (human rights, etc.)

Environmental Achievements

• Greenhouse gas reduction rate (based on FY2018 levels): Scope1+2: 18.0% reduction, Scope3: Null
• Reduced industrial waste generation at business sites
• Promoting recycling of industrial waste
• Eco-products sales ratio increased

Social Achievements

• Launched the “Action ECO-22V” Campaign
• Established the Diversity & Inclusion Department
• Selected as a “Nadeshiko Brand” company
• Acquired “Eruboshi” certification
• Certified as a “Sports Yell Company”
• Implemented various training programs for employees
• Promoted the development and advancement of a diverse range of human resources

Governance Achievements

• Established the Financial Reporting Internal Control Committee
• Established the Nominating Advisory Committee and the Compensation Advisory Committee
• Increased the number of outside directors
• Implemented the Speak-Up System
• Introduced an anti-bribery program
• Established the Compliance Committee

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impact on business activities
• Decrease in automobile production
• Delays in communications and power-related construction
• Decline in optical fiber prices
• Supply chain disruptions
• Shortage of shipping containers
• Surging material prices
• Uncertainty over the supply of semiconductors
• Fluctuations in market demand for products
• Price competition in some sectors

Mitigation Strategies

• Implemented thorough cost reduction measures
• Secured production and shipments
• Reduced costs
• Consolidated core technology to support IoT-based societies
• Developed new products and proposals
• Improved global market presence
• Strengthened manufacturing capabilities and business base
• Enhanced global response and integrated/consolidated domestic and overseas business operations
• Focused on the development of new products for next-generation automobiles
• Established the DX Promotion Committee
• Strengthened SEQCDD
• Implemented Business Continuity Management (BCM)
• Strengthened information security measures
• Formulated BCPs for countermeasures against infectious diseases
• Promoted the creation of BCPs at overseas subsidiaries
• Implemented cost reduction activities
• Strengthened proposal-based marketing for customers
• Accelerated the creation of new CASE-related products and aluminum harnesses
• Worked to expand the share of overseas customers
• Improved profitability through cost reductions and productivity improvements
• Expanded businesses that capture diverse customer needs
• Leveraged the collective strength of the Group
• Focused on cost reduction, quality improvement, new product development, and strengthening of project management
• Expanded global production capacity to meet increasing demand
• Improved profitability by strengthening the global manufacturing and sales structure and through new product development
• Optimized global production system and implemented productivity improvements
• Accelerated the development of high-definition and high-frequency compatible new products
• Strengthened global sales and manufacturing assets

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• CSR procurement (90% or more transactions within domestic group)
• Sumitomo Electric Group CSR Procurement Guidelines

Climate-Related Risks & Opportunities

Physical Risks

• Increasingly frequent and severe disasters

Transition Risks

• Global warming
• Depletion of resources

Opportunities

• Development of energy-efficient products
• Promotion of renewable energy use

Reporting Standards

Frameworks Used: International Integrated Reporting Council (IIRC) “The International Integrated Reporting Framework”, Ministry of Economy, Trade and Industry “Guidance for Collaborative Value Creation”

Certifications: Science-Based Targets initiative (SBTi), Nadeshiko Brand, Eruboshi

Third-party Assurance: KPMG AZSA LLC

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Aluminum wiring harnesses
• Tab leads for automotive lithium-ion batteries
• Rectangular magnet wires for electric vehicle motors
• High-voltage submarine cables
• Redox Flow Battery
• Poreflon™ modules
• Optical fiber cables
• High-durability prestressing steel
• Flexible printed circuits (FPC)
• Magnet wire
• Cutting tools
• Traffic control system
• Aluminum wiring harnesses
• Gateways
• Tab leads
• High-voltage DC cables with low transmission loss
• Large storage batteries
• SiC power semiconductors
• Ultra-high-density optical fiber cables
• Optical connectors
• Submarine cables using ultra-low-loss optical fibers
• Transmission devices and optical devices products for 5G base stations
• Poreflon microfiltration membrane modules

Awards & Recognition

• Nadeshiko Brand
• Eruboshi
• Sports Yell Company

Environmental Metrics

ESG Focus Areas

• Quality
• Supply Chain
• Human Resources
• Environmental Preservation
• Social Contribution

Environmental Achievements

• Reduced CO2 emissions by 18% from the FY2017 level
• Reduced amount of waste per unit of sales by 19.9% from the FY2017 level
• Reduced the release of PRTR-designated substances by 33% from the FY2017 level

Social Achievements

• Launched various initiatives for work style reforms, including promotion of work styles that balance work and life and review of operations to improve efficiency
• Established Sumiden Friend, Ltd., a special subsidiary for employing persons with disabilities
• Expanded the system for working from home arrangements

Governance Achievements

• Established the Sustainability Management Promotion Committee chaired by the president
• Established the Compliance Committee chaired by the President
• Established the Sumitomo Electric Group Policy on Human Rights

Climate Goals & Targets

Environmental Challenges

• Impact of COVID-19 pandemic on economic conditions and business activities
• Supply chain disruptions due to the COVID-19 pandemic and semiconductor supply shortage
• Need to accelerate response to increasing social demand for commitment to global warming, human rights and supply chain issues

Mitigation Strategies

• Introduced various measures to contribute to BCP and reduce risks, including division of staff into two groups
• Introduced measures to prevent COVID-19 infection, including teleworking and online conferences
• Implemented various initiatives to further enhance CSR procurement, including surveys, interviews and training for suppliers

Supply Chain Management

Supplier Audits: 66 companies surveyed in 2020

Responsible Procurement

• Sumitomo Electric Group CSR Procurement Guidelines
• SEI Guidelines for Green Quality Purchases
• ECO Factoring System

Climate-Related Risks & Opportunities

Physical Risks

• Temperature rise
• Sea level rise
• Increase in the size and frequency of typhoons
• Flood and drought

Transition Risks

• Regulations on atmospheric emissions and wastewater discharge
• Carbon pricing

Opportunities

• Development and marketing of eco-friendly products
• Renewable energy

Reporting Standards

Frameworks Used: GRI Standards

Certifications: ISO 14001

Sustainable Products & Innovation

• Redox Flow Batteries
• POREFLON™ modules

Awards & Recognition

• Nadeshiko Brand (2017, 2019, 2021)
• Health and Productivity Management Outstanding Organization (2021)
• Sports Yell Company (2020)

Environmental Metrics

ESG Focus Areas

• Climate Change
• Diversity & Inclusion
• Governance
• Human Rights
• Supply Chain Sustainability

Environmental Achievements

• Reduced greenhouse gas emissions (Scope 1+2) by 8.9% from 2018 to 2021.
• Reduced greenhouse gas emissions (Scope 3) by 17.4% from 2018 to 2021.
• Increased renewable energy share (details not specified).

Social Achievements

• Launched various social contribution activities, including the Sumitomo Electric Group Social Contribution Fund.
• Promoted diversity and inclusion initiatives, including increasing the percentage of women in management positions.
• Implemented wellbeing initiatives for employees (details not specified).

Governance Achievements

• Established a Sustainability Management Promotion Committee chaired by the President.
• Implemented a comprehensive compliance program, including a speak-up system.
• Established a risk management committee.

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to semiconductor shortages and the COVID-19 pandemic.
• Rising material prices and logistics costs.
• Climate change risks (physical and transition risks).

Mitigation Strategies

• Implemented cost reduction measures.
• Maintained supply chain stability.
• Developed alternative sourcing strategies.
• Developed BCP (Business Continuity Plan) to mitigate risks from natural disasters and other disruptions.

Supply Chain Management

Supplier Audits: 5 audits (2021)

Responsible Procurement

• Sumitomo Electric Group CSR Procurement Guidelines
• Supplier Code of Conduct (2021)

Climate-Related Risks & Opportunities

Physical Risks

• Natural disasters

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Development of energy-efficient products and services

Reporting Standards

Frameworks Used: IIRC International , TCFD

Certifications: SBTi (Science Based Targets initiative)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Various products contributing to a green environment (details in report)

Awards & Recognition

• Health & Wellbeing Award (details not specified)

Environmental Metrics

ESG Focus Areas

• Environmental conservation
• Human rights
• Human resources
• Social contribution
• Quality
• Supply chain

Environmental Achievements

• Reduced GHG emissions (Scope 1+2) by 14.1% from FY2018
• Reduced GHG emissions (Scope 3) by 8.7% from FY2018
• Reduced energy consumption per unit of sales (production sites) by 20.4% vs FY2021
• Reduced energy consumption per unit of sales (offices) by 24.5% vs FY2018
• Reduced waste discharged per unit of sales by 40.7% vs FY2017
• Reduced water withdrawal per unit of sales by 26.4% vs FY2017
• PRTR emission reduction by 28.2% vs FY2017
• Increased renewable energy adoption (Photovoltaic power generation) to 15.9 MW
• Eco products sales percentage increased to 59%
• 213 cases of biodiversity and environmental conservation activities

Social Achievements

• Zero serious accidents
• Implemented measures to develop SEG Global Executives
• Reduced the index for the number of complaints by 39.5% from 2017
• Maintained and expanded projects that help solve social problems
• Continued CSR procurement covering 90% of domestic procurement value
• Launched Sumitomo Electric Group Global Engagement Survey
• Increased percentage of male employees taking childcare leave to 74%
• Introduced a system to strengthen dialogue with superiors during pregnancy and parenting
• Implemented a mentoring program for female managerial candidates

Governance Achievements

• Established the Sustainability Management Promotion Committee
• Revised CSR core categories and priority themes
• Established the Global Environment Promotion Committee
• Disclosed climate change information in line with TCFD recommendations
• Established the Nominating Advisory Committee and Compensation Advisory Committee
• Established the Compliance Committee
• Implemented the Speak-Up System
• Established the Code of Conduct
• Implemented Global Quality Management System Audits

Climate Goals & Targets

Environmental Challenges

• Climate change risks (physical and transition risks)
• Water risks (floods, droughts, water quality)
• Supply chain disruptions
• Compliance issues
• Maintaining high safety standards
• Achieving GHG emission reduction targets
• Improving recycling rates overseas
• Ensuring respect for human rights throughout the supply chain
• Promoting diversity and inclusion

Mitigation Strategies

• Developed alternative sourcing strategies
• Implemented business continuity plans (BCPs)
• Established a chemical substances management system
• Implemented environmental audits
• Provided safety training and implemented safety measures
• Set science-based targets (SBTi) for GHG emissions reduction
• Promoted recycling initiatives
• Established the Sumitomo Electric Group Policy on Human Rights and Supplier Code of Conduct
• Implemented diversity and inclusion initiatives

Supply Chain Management

Supplier Audits: Approximately 100 major suppliers surveyed in FY2022

Responsible Procurement

• Sumitomo Electric Group CSR Procurement Guidelines
• Sumitomo Electric Group Policy on Human Rights
• Supplier Code of Conduct
• Green procurement
• ECO Factoring System

Climate-Related Risks & Opportunities

Physical Risks

• Extreme climate events (typhoons, torrential rain, droughts, water shortages, high/low temperatures)
• Flooding
• Water shortages

Transition Risks

• Tightening of policies and legal regulations
• Rise in GHG emissions trading prices
• Tightened material recycling regulations
• Carbon tax
• Calls for GHG emissions reduction throughout the supply chain

Opportunities

• Expansion of renewable energy market
• Growing demand for products supporting a decarbonized society (e.g., rechargeable batteries, energy management systems)
• Growing demand for raw materials for EVs and other green products

Reporting Standards

Frameworks Used: GRI Standards, TCFD recommendations

Certifications: ISO 14001

Third-party Assurance: Independent third party assurance

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Eco Mind products
• Eco products
• Products contributing to a green global environment (e.g., DC-XLPE cable, hydrogen co-combustion burner)

Awards & Recognition

• L-boshi (highest-ranking 3 stars)
• Nadeshiko Brand (four times)
• 2023 Health and Productivity Stock
• Sports Yell Company 2023
• Grand Prize at the Awards for Companies Supporting Sports in Kansai