Appropriate Chemical Substance Management

The Sumitomo Riko Group utilizes a variety of chemical substances, including those found in raw materials for our products, manufacturing aids, and alternative refrigerants for air conditioning systems. While these chemicals are essential to our operations, improper handling can pose risks to human health and the environment by contaminating soil, air, and water. Consequently, regulations governing the use and disposal of chemicals are becoming increasingly stringent, especially in Europe.
In response to these growing regulations, we are taking proactive steps to mitigate these risks. We have established guidelines for managing chemical substances in compliance with the regulations of each country, ensuring that our raw materials are free from prohibited substances and promoting proper management through employee training. Through these initiatives, we are committed to producing safe and reliable products.

The Sumitomo Riko Group operates in 21 countries worldwide, providing products used across various markets. To comply with both the legal regulations of each country and the chemical substance standards set by our customers, we define the chemical substances that are permissible for our use and establish procurement guidelines accordingly. We communicate these standards to our suppliers to ensure that prohibited substances and unintended contaminants are not introduced into our products.
Additionally, we maintain a comprehensive database of chemical substance information for each raw material. For delivered products, we report information based on customer requirements, including through the International Material Data System (IMDS), while centrally managing this information within our organization. Through these initiatives, we are dedicated to delivering products that meet legal regulations and fulfill customer expectations.

Sumitomo Riko is committed to managing chemical substances to prevent regulated substances from being used in its products. We define the approved raw materials for use within the organization in accordance with international standards such as GADSL^*1 and IEC 62474^*2, as well as the ELV Directive^*3, the RoHS Directive^*4, and the REACH Regulation^*5 in Europe, along with domestic laws from each country and customer requirements.
Additionally, Sumitomo Riko exports materials, parts, and products to production bases around the world. We appropriately respond to the regulations in the regions we export to, including the REACH Regulation*⁵, China’s Measures for the Environmental Management Registration of New Chemical Substances*⁶, the Measures for the Registration and Management of Hazardous Chemicals*⁷, and the Toxic Substances Control Act (TSCA)*⁸ in the United States, with the cooperation of our suppliers.

*1 GADSL: Global Automotive Declarable Substance List. Identifies substances that automotive manufacturers must declare to control their use.
*2 IEC 62474: Standard for managing information about substances in electrical and electronic products, requiring manufacturers to declare specific substances.
*3 ELV Directive: End-of-Life Vehicles Directive. Sets requirements for recycling vehicles at the end of their life to reduce waste.
*4 RoHS Directive: Restriction of Hazardous Substances Directive. Limits specific hazardous materials in electrical and electronic products to protect health and the environment.
*5 REACH Regulation: Registration, Evaluation, Authorisation and Restriction of Chemicals. Ensures safe chemical use in the EU by requiring registration and information disclosure.
*6 Measures for the Environmental Management Registration of New Chemical Substances: Regulation for the registration of chemical substances in China.
*7 Measures for the Registration and Management of Hazardous Chemicals: Regulation for the management of hazardous substances in China.
*8 TSCA: Toxic Substances Control Act. Regulates chemical registration and management of hazardous substances in the U.S.

The Sumitomo Riko Group conducts proper management and reporting in accordance with the PRTR (Pollutant Release and Transfer Register) system, which requires the reporting of chemical substance emissions and transfers to regulatory authorities. This system is implemented in Japan and many other countries, and we accurately monitor the usage and emission levels of the relevant chemical substances, reporting them to the appropriate authorities.
Additionally, we have established an internal management system for chemical substances and are actively working to reduce emissions. Through these efforts, we not only comply with legal requirements but also reduce our environmental impact, thereby fostering trust within the communities we operate in.

Release and Transfer of PRTR-controlled Substances (Sumitomo Riko)

Volatile Organic Compounds (VOCs) released into the atmosphere react with ultraviolet rays from sunlight, leading to the formation of photochemical oxidants and particulate matter. Within the raw materials used by the Sumitomo Riko Group, VOCs are primarily found in adhesives used to bond rubber to metal fittings, as well as in rubber adhesives for hoses, and anti-corrosion coatings for metal parts, which release VOCs during the drying process.
To address this issue, we are committed to reducing VOC emissions by developing high-efficiency spray guns that minimize adhesive waste during application and by transitioning to water-based coatings to lower VOC usage. Moving forward, we will continue these efforts while collaborating with suppliers on new initiatives, such as the development of water-based adhesives.

VOC Emissions (Sumitomo Riko)

The VOC treatment system and the vulcanization gas treatment system each pose a risk of exceeding emissions regulation limits in the event of a fire or operational failure. To address this risk, we have developed a comprehensive guidebook that outlines essential design and operational considerations for these systems. This guidebook is shared across all our locations to ensure a consistent understanding. Additionally, it includes examples of past incidents, their estimated causes, and corresponding corrective actions, which are utilized to support recurrence prevention and continuous improvement activities at each location.

At the Sumitomo Riko Group, we previously used chlorinated organic solvents to clean metal components. However, in the 1990s, concerns over soil and groundwater contamination, as well as health risks, including carcinogenicity, gained global attention, leading to stricter regulations. Consequently, we transitioned to water-based cleaning agents.
At sites where soil contamination has been identified, we submit the required notifications to the relevant authorities in accordance with applicable laws and regulations and continue remediation activities. At inactive sites, remediation measures include excavation and replacement of contaminated soil. At operating sites, we implement groundwater extraction and aeration as well as anaerobic bioremediation. We continuously monitor contaminant concentrations to confirm that remediation efforts are effectively reducing contamination levels.
Sites where remediation has been completed include the former Okayama Plant site in Japan (sold after remediation) and Sumiriko AVS France (now SumiRiko SD France S.A.S.). Remediation is ongoing at the Komaki, Matsusaka, and Saitama Plants in Japan.

At the Sumitomo Riko Group, we are working to reduce emissions of fluorocarbons and promote the use of natural refrigerants in order to protect the ozone layer and mitigate global warming. In FY2025, Sumitomo Riko’s fluorocarbon leakage amount reported under the Fluorocarbon Emissions Control Act was 486 tons of CO₂ equivalent.
We manage these substances through legally mandated periodic inspections and ensure proper recovery of fluorocarbons and proper disposal of equipment. Going forward, we will continue to upgrade our equipment and strive to further reduce fluorocarbon use.

Polychlorinated biphenyls (PCBs), known for their non-flammability, excellent electrical insulation properties, and chemical stability, were once widely used in applications such as high-voltage transformers and capacitors. However, following the establishment of the Stockholm Convention (POPs Convention) and the strengthening of regulations in many countries, the manufacture and use of PCBs are now largely prohibited, and strict storage management and planned disposal of PCB waste are required.
The Sumitomo Riko Group identified all PCB-containing equipment and waste, implemented strict storage management, and carried out planned waste disposal in accordance with the regulations of each country. Following the completion of high-concentration PCB waste disposal at the Matsusaka Plant in spring 2020, the Group completed the disposal of all high-concentration PCB waste in Japan.

Chemical substance regulations are becoming increasingly stringent, and regulatory requirements and controlled substances vary by country and customer. As a result, ensuring traceability from purchased raw materials to shipped products, as well as emissions and waste, has become increasingly important.
To achieve this, we are expanding the raw-material database currently under development into an integrated management system that enables centralized management of information from purchased raw materials through to shipped products. In addition, we are establishing a framework that will enable us to respond promptly to new regulatory requirements.