Slide 1: Initiatives for mid- to long-term increase in Corporate Value
Initiatives for mid- to long-term increase in Corporate Value June 26 th, 2020 Sumitomo Corporation © 2019 Sumitomo Corporation Copyright © 2020 Sumitomo Corporation, All Rights Reserved.
Slide 2: Agenda
AGENDA １．Enhancing Sustainability Management ２．Initiatives on Climate Change Issues ３．Initiatives on Human Rights ４．Social and Environmental Risk Management ５．Corporate Governance ６．HR Strategy Copyright © 2020 Sumitomo Corporation, All Rights Reserved. 1
Slide 3: Enhancing Sustainability Management: Roles of the company in a sustainable society
1. Enhancing Sustainability Management Roles of the company in a sustainable society Sustainable society “A society where development takes place to Investors meet the needs of the present without Governments compromising what future generations need.” Local Partners residents Economic activities
Slide 4: Key social issues and long-term goals for the Sumitomo Corporation Group
１． Enhancing Sustainability Management Key social issues and long-term goals for the Sumitomo Corporation Group Mid-term goals and KPIʼs will be set and progress will be monitored. Development and Sustainability of evolution of the society the society 【Long-term goals】 【Social issues 】 【Social i
Slide 5: Six Material Issues to achieve sustainable growth with society
１．Enhancing Sustainability Management Initiatives to take a step forward for Sustainability Management Sumitomo Corporation group Key social issues and Long- term goals ●Key social issues particularly relevant to the companyʼs business activities. ●Commitment on its role to play in achieving a sus
Slide 6: Sustainability management at Sumitomo Corporation Group
１．Enhancing Sustainability Management Sustainability management at Sumitomo Corporation Group Pursue sustainable growth with the society Sustainable society Sustainable growth of the company Commitment to solve social issues Value creation Monitoring long‐term business Strategic resource allocatio
Slide 7: Review of Policy on Climate Change issues
２．Initiatives on Climate Change Issues Review of Policy on Climate Change issues Basic Policy ● Aim to make the Sumitomo Corporation Group carbon neutral in 2050*. Develop technologies and business models for creating a sustainable energy cycle by reducing CO2 emissions and achieving negative emis
Slide 8: Policies on coal-fired power generation and thermal coal mining
２．Initiatives on Climate Change Issues Additional notes: In 2019, the Company has established the following policies regarding coal-fired power generation business and thermal coal mining business. In addition, the revised policy sets carbon neutrality by 2050 and the development of coal-fired power
Slide 9: Views on the achievement of carbon neutrality
2. Initiatives on Climate Change Issues Views on the achievement of carbon neutrality [Scope of carbon neutralization efforts] Scope 1 Scope 2 Scope 3 Direct emissions in the Indirect emissions Other indirect company’s business, stemming from the emissions including fuel burning generation of elec
Slide 10: Flow of energy and CO2
2. Initiatives on Climate Change Issues Flow of energy and CO2 Solar energy CO2 < CO2 Using renewable energy Photosynthesis Fossil energy Carbon Absorbing and reusing CO2 Mining Burning fossil fuels Realizing a Energy management carbon-neutral society CO2 absorption centered on through natural ren
Slide 11: The Company's Initiatives on Climate Change Issues
2. Initiatives on Climate Change Issues The Company’s Initiatives on Climate Change Issues Carbon-neutral society Energy management CO2 absorption Energy conservation Realizing a centered on Better efficiency through on the demand side hydrogen society renewable energies natural forces Internation
Slide 12: Disclosure in line with the final recommendations of TCFD
2. Initiatives on Climate Change Issues Disclosure in line with the final recommendations of TCFD (governance, strategy, risk management, metrics/targets) <Governance> <Strategy (scenario analysis)> Supervision by Board of Directors, decision- Scenarios • IEA “World Energy Outlook 2019” making
Slide 13: Sumitomo Corporation Group's Human Rights Policy
３．Initiatives on Human Rights May. 2020 “Sumitomo Corporation Groupʼs Human Rights Policy” 0. Introduction We respect the international norms. Formulation of human rights policy “Ten Principles of the United Nations Global Compact”, “International Bill of Human Rights”, “Declaration on Fundamental
Slide 14: Social and Environmental Risk Management
4. Social and Environmental Risk Management Group policies: Environmental Policy, Human Rights Policy, CSR Action Guidelines for Supply Chain Management Board of Directors Management Council President and Chief Internal Auditing Executive Officer Dept. Company Investment Internal Control Corporate S
Slide 15: Measures Implemented to Enhance Corporate Governance
5．Corporate Governance I. Measures Implemented to Enhance Corporate Governance Pre-Jun. 2014 Jun. 2015 Jun. 2016 Jun. 2017 Jun. 2018 Jun. 2019 Jun. 2020 2003 ・Decreased the number of Directors （24→12） ・Prohibited Chairman of the Board from simultaneously serving as President & CEO The Implemented Ev
Slide 16: Corporate Governance Framework
5．Corporate Governance Ⅱ. Corporate Governance Framework (After Ordinary General Meeting of Shareholders in June 2020) General Meeting of Shareholders The Board of Directors The Audit & Supervisory Board Outside (Independent) 11 Directors Diversity （incl. 5 Independent Ehara Ishida Iwata Outside Dir
Slide 17: Diversity of Outside Directors
5．Corporate Governance Ⅲ. Diversity of Outside Directors 5 out of 11 Directors are Outside Directors（After Ordinary General Meeting of Shareholders in June 2020） Areas of Expertise and Experience Governmental Management Communications Information and Term Investment Name, Brief History Business Fina
Slide 18: Measures to Further Improve the Effectiveness of the Board of Directors
IV. Measures to Further Improve the Effectiveness of the Board of Directors Evaluation of the Issues in Main initiatives in Evaluation & main issues in effectiveness* FY2018 FY2019 FY2019 in FY2019 The Board of Directors has generally Evaluation Explanation and discussion Reports by Methods: bee
Slide 19: Enhancing the items for deliberation at the Board of Directors
V. Enhancing the items for deliberation at the Board of Directors (Main discussion themes at Board meetings and off-site in FY2019) Management plan Progress review of the Medium-term Management Plan 2020 Issues and directions for the post Medium-term Management Plan 2020 Medium-term Management
Slide 20: Cross-shareholdings
5．Corporate Governance Ⅵ. Cross-shareholdings Balance of cross-shareholdings（acquisition cost) 250 220 224 215 219 200 198 185 180 165 150 142 144 141 132 130 129 134 126 131 116 125 121 117 116 112 100 103 50 0 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 Bala
Slide 21: Governance of a Listed Subsidiary
VII. Governance of a Listed Subsidiary (Corporate Governance Report) Views and policies on group management Share a set of values to be respected throughout the Group* Achieve sustainable Aim to respect the autonomy of each group company growth/development and maximize and entrust to its top man
Slide 22: HR Strategy: Initiatives
6．HR Strategy Initiatives Creating an environment in which diverse individuals can demonstrate their capabilities to the fullest ✔ Workstyle Transformation 2019 ・ expedite autonomous and flexible workstyle ✔ Establishment of “Alumni Network” ✔ Enhancing mid-career hires ✔ Review of appropriate dress
Slide 23: HR Strategy: Initiatives
6．HR Strategy Initiatives Creating an environment in which diverse individuals can demonstrate their capabilities to the fullest ✔ Workstyle Transformation 2019 ・ expedite autonomous and flexible workstyle ✔ Establishment of “Alumni Network” ✔ Enhancing mid-career hires ✔ Review of appropriate dress
Slide 24: To take a leap forward in the future
6．HR Strategy To take a leap forward in the future ~ Break through the traditional Japanese HR system 〜 Copyright © 2020 Sumitomo Corporation, All Rights Reserved. 22