Environment
Shareholders and Investors, Suppliers and Other Trade Partners, Employees, Global Environment

Environmental Management

Commitment

Message from the Chairperson of Environment Committee

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Recent global environmental issues range from climate change in line with global warming and marine plastic pollution caused by illegal waste disposal to increasing water risk due to population increase and frequent occurrence of natural disasters. In view of these various issues, initiatives to achieve a sustainable society are called for. Recognizing that responding to global environmental issues is an urgent task, the Sumitomo Riko Group is addressing these issues. We formulated three environmental objectives in May 2018 as part of the non-financial objectives of the 2022 Vision and are promoting environmental protection activities.
The Environment Committee is a subcommittee under the CSR Committee and its members are officers responsible for business units. The Environment Committee is responsible for deliberation on and approval of environmental action plans of the Group and audit check of environmental activities.
As the chairperson of the Environment Committee, I promote the global environmental protection activities of the Sumitomo Riko Group to contribute to the creation of a safe, secure, and comfortable global environment in accordance with the Group's objective of earning the trust of stakeholders. I appreciate our stakeholders' continued support.

Tsukasa Oshima
Chairperson of Environment Committee
Director and Managing Executive Officer

Approach to Environmental Activities

The Sumitomo Riko Group aspires to be a "Global Excellent Manufacturing Company" and is engaging in business activities Group-wide with the aim of achieving net sales of ¥1 trillion in fiscal 2029. In keeping with "We will strive to protect the global environment and to contribute to creating better communities," a commitment articulated in the Sumitomo Riko Group Management Philosophy, we have declared our desire to be a company that contributes to the environment both globally and locally.
To put this commitment in the management philosophy into practice, we have developed an environmental management system and worked to reduce environmental impacts and environmental risks in our business activities. In addition, we have contributed to corporate value enhancement from an environmental perspective by actively pursuing development of environmentally friendly products and technologies that meet environmental regulations.
Furthermore, we declared our commitment to globally engage in more environmentally focused business activities, making “a corporation that contributes to safety, comfort, and the environment for people, society, and the earth” the slogan for Sumitomo Riko Group Vision (2022V), a mid-term management vision formulated in accordance with changes in the business environment in which the Group operates.

Environmental policy

Basic policy

The Sumitomo Riko Group intends to do business always with natural environment preservation in mind sticking to social expectation and rules, and carry out all the activities from product development, design, procurement, sales to waste disposal under the principles of “MOTTAINAI” and “OMOIYARI.” Sumitomo Riko also aims to formulate sustainable society contributing to global environment preservation under the spirit of social contribution.

Action guideline

  1. Make the environmental preservation deep rooted activities in corporate culture and encourage all employees to participate.
  2. Encourage the entire Sumitomo Riko group to be involved in the preservation activities.
  3. Develop Sumitomo Riko's own improvement plan besides complying with environment related regulations imposed by national and municipal governments to lower environmental load.
  4. Establish target and goals for environmental protection and carry them out systematically and continuously.
  5. Make efforts to develop products and a production system with low environmental loads and push forward with more active environmental protection activities.
  6. Disclose environment related information and promote opinion exchange in local community and society.

Environmental Management Structure

Establishment of environmental management systems (ISO14001 certification)

The Sumitomo Riko Group is engaged in ongoing environment improvement activities by building and operating an environmental management system based on ISO14001, the international standard for environmental management systems, at our production sites in Japan and overseas. 12 sites in Japan and 40 sites overseas are now ISO 14001-certified, accounting for 97% of sales of the Group as a whole.
(For the list of ISO14001-certified sites, click here.)

Environmental management organization

Regarding environmental management at the Sumitomo Riko Group, the Environment Committee positioned under the CSR Committee determines the policy and deliberates on and approves the Group’s environmental activities. It has also established the All-Company Environmental Meeting as a forum for the business units to announce their commitment to environmental protection activities. The Group’s global environmental activities are governed by this organizational structure.

Figure: Environment Management Structure

Mid-term Vision for Environmental Activities

Regarding global environmental issues, the Paris Agreement, an international framework for climate change countermeasures, calls for activities to reduce greenhouse gases not only by countries but also companies. In 2015, the United Nations General Assembly adopted the Sustainable Development Goals (SDGs), and companies are urged to act at its own initiative to address a range of issues including human rights and safety, in addition to the environment.
In 2022V, our mid-term management vision, we aim for steady growth of the Company until 2022 to pave the way for dramatic growth leading up to 2029 and have revised our environmental targets. We will actively work to reduce waste emissions and other environmental impacts, with a particular focus on CO2 reduction, and to reduce water risk and other environmental risks.
We defined mid-term environmental objectives for fiscal 2022 and objectives for fiscal 2019, as shown below, and are conducting activities globally. Progress in fiscal 2019 achieved the objectives.

Mid-term environmental objectives (2022V) and objectives and progress in FY2019
ItemsObjectives (2022V) FY2019Judgment
ObjectivesProgress
CO2 reduction8% reduction (compared with the emission intensity in fiscal 2017)3.2% reduction 3.2% reductionGood
Waste reduction
(Excluding valuable resources)
5% reduction (compared with the emission intensity in fiscal 2017) 2.0% reduction 4.1% reductionGood
Water risk reductionRecycling of water at high-risk sitesWater risk at each site was identified.Good

Environmental Impacts in FY2019

Results and plans for environmental material issues
IssueFY2019 target and resultFY2020 target and plan
Reduction of CO2 emissionsTarget 3.2% reduction of emission intensity compared with FY2017
2.0% reduction of total emissions compared with FY2017
Target4.8% reduction of emission intensity compared with FY2017
3.0% reduction of total emissions compared with FY2017
Result 3.2% reduction of emission intensity: Target achieved
7.2% reduction of total emissions: Target achieved
PlanImplement the reduction theme without fail and achieve greater reduction through energy-saving diagnostics
Reduction of waste (Excluding valuable resources) emissionsTarget 2.0% reduction of emission intensity compared with FY2017
2.0% reduction of total emissions compared with FY2017
Target3.0% reduction of emission intensity compared with FY2017
3.0% reduction of total emissions compared with FY2017
Result4.1% reduction of emission intensity: Target achieved
8.0% reduction of total emissions: Target achieved
PlanReduce defects, improve yield, and promote recycling waste into valuable resources
Waste recycling rateTargetRecycling rate of 80% or moreTargetRecycling rate of 80% or more
ResultThe target was not reached at 78.8%PlanContinuous promotion of recycling
Reduction of VOC emissionsTargetReduce emissions in Japan to the level below the results for FY2017TargetReduce emissions in Japan to the level below the results for FY2017
Result 15.7% reduction of emissions in Japan compared with FY2017: target achieved PlanContinuous execution of the reduction plan
Chemical substance managementTargetRespond to new regulations and continue activities to reduce use of substances subject to controlTargetRespond to new regulations and continue activities to reduce use of substances subject to control
ResultResponded to revised CSCL (Japan), continued to respond to EU REACH Regulation, responded to revised RoHS Directive, and responded to revised TSCAPlanRevise Chemical Substance Procurement Standards, respond to revised CSCL (Japan), continue to respond to EU REACH Regulation, respond to EU Waste Framework Directive, and respond to the revised TSCA
Local environmental protectionTargetImplement countermeasures for exhaust, wastewater, odor, etc., for the benefit of communities, and consider and implement measures for purification of soil and groundwater in JapanTargetImplement countermeasures for exhaust, wastewater, odor, etc., for the benefit of communities, and consider and implement measures for purification of soil and groundwater in Japan
ResultPurification of soil and groundwater in Japan is underway as scheduled. Remodeled the deodorizer at the Matsusaka Plant to improve its durability. Introduced additional VOC treatment equipment at sites in China.PlanMaintain the effect of purification of soil and groundwater in Japan.
  • * The denominator used for calculation of the emission intensity of performance indicators is sales.
Sumitomo Riko Group's material balance

Items for which independent assurance was received are marked with.

Figure: Sumitomo Riko Group's Material Balance
  • *1 Scope of data on energy consumption: Sumitomo Riko, 8 Sumitomo Riko Group companies in Japan, and 44 Sumitomo Riko Group companies overseas
  • *2 Scope of data on raw materials input: Sumitomo Riko and principal consolidated subsidiaries.

SUMITOMO RIKO COMPANY LIMITED.

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