Slide 1: Enhancement of Sustainability Management and Sustainable Value Creation
ESG Briefing Enhancement of Sustainability Management and Sustainable Value Creation Hideki Yamano, Representative Director, Senior Managing Executive Officer, Chief Strategy Officer and Chief Information Officer 7th. Oct. 2021 1 © 2021 Sumitomo Corporation
Slide 2: Contents
Contents Sumitomo Corporation Group Sustainability P3 Management (1) Sustainability Management and the Value Creation 1. Process (2) Enhancing Sustainability Management (3) Addressing Climate Change Issues (4) Initiatives for Human Rights Issues Information Disclosure Initiatives P12 2. (1) Informat
Slide 3: Position of Sustainability Management in the Value Creation Model
1. Sumitomo Corporation Group Sustainability Management (1) Sustainability Management and the Value Creation Process Position of Sustainability Management in the Value Creation Model A system of management that puts our business philosophy and corporate mission statement into practice = Sustainabili
Slide 4: Structure of Sustainability Management
1. Sumitomo Corporation Group Sustainability Management (1) Sustainability Management and the Value Creation Process Structure of Sustainability Management The sustainability of Sumitomo’s business philosophy Internalization of external society Sumitomo Corporation Group's diseconomies Management Pr
Slide 5: Enhancing Sustainability Management
1. Sumitomo Corporation Group Sustainability Management (2) Enhancing Sustainability Management Enhancing Sustainability Management ⚫ Incorporating organizations’ growth strategies and business management goals and turning our business portfolio into one that is compatible with a sustainable society
Slide 6: Response Policy and Setting Goals for Mitigation of Climate Change
1. Sumitomo Corporation Group Sustainability Management (3) Addressing Climate Change Issues Response to Climate Change Issues: Response Policy and Setting Goals for Mitigation of Climate Change ⚫ Conducting continuous review of climate change mitigation in response to future changes in the business
Slide 7: Addressing Climate Change Issues: Developing Business Opportunities
1. Sumitomo Corporation Group Sustainability Management (3) Addressing Climate Change Issues Addressing Climate Change Issues: Developing Business Opportunities ⚫ Developing business opportunities that satisfy the social needs that change along with shifts in technologies and business models associa
Slide 8: Responding to Risks (TCFD Scenario Analysis): Transition Risks
1. Sumitomo Corporation Group Sustainability Management (3) Addressing Climate Change Issues Addressing Climate Change Issues: Responding to Risks (TCFD Scenario Analysis) ⚫ Transition risks: Analyzing sectors with significant CO2 emissions and anticipated changes in the business environment associa
Slide 9: Responding to Risks (TCFD Scenario Analysis): Physical Risks
1. Sumitomo Corporation Group Sustainability Management (3) Addressing Climate Change Issues Addressing Climate Change Issues: Responding to Risks (TCFD Scenario Analysis) ⚫ Physical risks: Overviewing physical risks in our business portfolio, focusing on businesses that are comparatively more serio
Slide 10: Establishment of Sumitomo Corporation Group's Human Rights Policy
1. Sumitomo Corporation Group Sustainability Management (4) Initiatives for Human Rights Issues Initiatives on Respect for Human Right: Establishment of "Sumitomo Corporation Group’s Human Rights Policy" ⚫ Established "Sumitomo Corporation Group’s Human ⚫ Initiated human rights due diligence to iden
Slide 11: Identifying Salient Human Rights Issues
1. Sumitomo Corporation Group Sustainability Management (4) Initiatives for Human Rights Issues Initiatives for Human Right: Establishment of "Sumitomo Corporation Group’s Human Rights Policy" ⚫ Identifying Salient Human Rights Through desktop surveys, internal interviews, and consultations with cf.
Slide 12: Information Disclosure Overview including Non-financial information
2. Information Disclosure Initiatives (1) Information Disclosure Overview Information Disclosure Overview including Non-financial information ESG Communic -ation Book 12 © 2021 Sumitomo Corporation
Slide 13: Integrated Report 2021: Overview and Key Points
2. Information Disclosure Initiatives (2) Integrated Report 2021 Integrated Report 2021: Overview and Key Points ⚫ Overall theme: structural reforms to quickly return to a growth trajectory and a roadmap for achieving sustainable growth. ⚫ We intend to prove the sustainable growth of the company by
Slide 14: SHIFT in Business Portfolio / Next-generation Growth Field
2. Information Disclosure Initiatives (2) Integrated Report 2021 SHIFT in Business Portfolio / Next-generation Growth Field Part 2 explains key points in SHIFT in our business portfolio ⚫ Shifting our portfolio to business areas where higher market potential can be expected and where we can fully le
Slide 15: SHIFT 2023 and the Value Creation Model
2. Information Disclosure Initiatives (2) Integrated Report 2021 SHIFT 2023 and the Value Creation Model ⚫ This shows how we achieve sustainable growth by enhancing our business portfolio through SHIFT 2023 and continuing to create value to achieve a sustainable society. A system of management that
Slide 16: Implementing the Value Creation Model in Our Businesses
2. Information Disclosure Initiatives (2) Integrated Report 2021 Implementing the Value Creation Model in Our Businesses ⚫ In segment overview, it shows how the value creation model is implemented in each business (in six segments). Value Creation Model Ex. Living Related & Real Estate Business Unit
Slide 17: Strategic Disclosure of Non-financial Information Based on the Value Creation Process
2. Information Disclosure Initiatives (3) Disclosure of Non-financial Information Strategic Disclosure of Non-financial Information Based on the Value Creation Process ⚫ Disclosure and verification of the value creation model and performance that support long-term sustainable growth, and continuous
Slide 18: Conclusion
3. Conclusion Conclusion Timely and appropriate disclosure of highly transparent information Management Principle and growth strategies, opportunities and risks, and the positive and negative social impacts of our business activities Engagement with various stakeholders Communication that provides a
Slide 19: Appendix
Appendix 19 © 2021 Sumitomo Corporation
Slide 20: Key social issues and goals: Sustainability of society
Appendix Sumitomo Corporation Group’s key social issues and medium- and long -term goals Key social issues Long-term goals Medium-term goals (newly set) Mitigation ◼ Aim for carbon ◼ Reduce the Group’s CO2 emissions 50% or more by 2035 (compared to 2019) of climate neutrality by 2050 – Reduce CO2 em
Slide 21: Key social issues and goals: Development and evolution of society
Appendix Sumitomo Corporation Group’s key social issues and medium- and long -term goals Key social issues Long-term goals Medium-term goals (newly set) Developme ◼ Contribute to ◼ Develop local industries, create jobs, and develop human resources through the Group’s global business operations Devel
Slide 22: Sumitomo Corporation Group's Climate Change Initiatives
Appendix Sumitomo Corporation Group’s Climate Change Initiatives 22 © 2021 Sumitomo Corporation
Slide 23: Sumitomo Corporation Group's Human Rights Policy
Appendix Sumitomo Corporation Group’s Human Rights Policy 23 © 2021 Sumitomo Corporation