Environmental Management

The Sumitomo Riko Group Corporate Action Charter states, “Recognizing that global environmental issues pose challenges to all humankind, and that it is an integral part of our existence and activities, we shall proactively tackle these issues.” Guided by this principle, we engage in activities that contribute to society, strive to protect the environment, and work toward building a sustainable future. To implement this policy, we will focus on reducing the environmental impact and risks associated with our business activities by utilizing our environmental management system, while also developing eco-friendly products and technologies that comply with environmental regulations.

The Sumitomo Riko Group is committed to prioritizing environmental conservation and conducting its activities in line with societal expectations and regulations. We uphold the principles of mottainai (a Japanese term that expresses a sense of regret over waste) and omoiyari (a Japanese term that conveys compassion and consideration for others) in all our operations, including product development, design, procurement, production, logistics, sales, and disposal. Through our dedication to socially responsible activities, we aim to protect the global environment and contribute to building a sustainable society.

1.  We will incorporate environmental conservation activities into our corporate culture and ensure that all employees actively participate in them.
2.  We will work together as the Sumitomo Riko Group to engage in global environmental conservation efforts.
3.  We will comply with environmental laws and regulations established by national and local governments while also developing our own plans to reduce our environmental impact.
4.  We will set targets and objectives for environmental issues and commit to systematic and continuous improvement.
5.  We will focus on developing products and production methods with lower environmental impact while enhancing our proactive efforts in environmental conservation.
6.  We will promote the disclosure of environmental information and foster engagement with the community and society.

The Sumitomo Riko Group's environmental conservation activities are overseen by the CSR Sustainability Committee, which reviews and approves environmental policies and the progress of environmental initiatives across the Group. The Committee, chaired by the President, convenes biannually and presents its reports to the Board of Directors twice a year.

The Sumitomo Riko Group is committed to ensuring compliance with environmental laws and regulations. Through monitoring and management activities, five cases of non-compliance were identified in FY2025: incomplete documentation in an industrial waste disposal contract, inadequate asbestos handling procedures, and delayed input of electronic manifest data in Japan; an error in a regulatory report in the United States; and delayed attachment of a waste label in Thailand. In addition, one complaint related to noise was received in Japan. Corrective actions were implemented in all cases.
Going forward, we will prioritize efforts to eliminate violations of environmental regulations and strive for zero environmental incidents. To support compliance at each facility, we have established the Regional Environmental Task Force. Through this committee, we provide information on revised regulations and share examples of regulatory violations. We also conduct regular environmental audits at domestic and international facilities to identify potential compliance issues.
Furthermore, we have developed the Environmental Management Guidelines, which set out the principles of environmental management and approaches to addressing potential issues. These guidelines are used to train site managers and environmental staff. We have also implemented the Environmentally Friendly Construction Guidelines, which summarize environmental considerations for construction projects. These guidelines aim to ensure regulatory compliance while minimizing impacts on neighboring communities.

The Sumitomo Riko Group has obtained ISO 14001 certification, the international standard for environmental management systems, at production sites in Japan and overseas and is committed to continuous environmental improvement. Certification has been obtained at 11 sites in Japan and 40 sites overseas.

Under the Sumitomo Spirit, the Sumitomo Riko Group is working as one to achieve its goal of becoming a Global Excellent Manufacturing Company, guided by its Management Philosophy: "Strive to protect the global environment and contribute to creating better communities." We believe that creating value from a long-term perspective while responding to global trends is essential to contributing to a sustainable society and achieving sustainable corporate growth.
Based on this belief, we established the Sumitomo Riko Long-Term Environmental Vision 2050. We also reviewed our materiality and identified three key themes: a decarbonized society, a circular society, and a nature-positive society. To guide our efforts, we adopted the slogan, "Toward a future where everyone can enjoy a comfortable life."
To realize the future envisioned in the Long-Term Environmental Vision 2050, we formulated our medium-term environmental targets, Environment 2029V, and promoted initiatives focused on the three key themes. As a result of these efforts, we achieved Environment 2029V ahead of schedule in FY2025. Building on this achievement, we have established new medium-term environmental targets for 2030 to further drive business growth and create new value, and are advancing initiatives across the Group to achieve them.

Key Issue	2030 Action Targets	2030 Quantitative Targets
Contribution to a Decarbonized Society	Reduce greenhouse gas (GHG) emissions	50% reduction in Scope 1 and 2 emissions (vs. FY2018)
		30% reduction in Scope 3 emissions (vs. FY2018)
	Improve energy efficiency	38% reduction in energy intensity (vs. FY2018)
	Promote renewable energy	30% renewable electricity share
Contribution to a Circular Society	Reduce waste generation	25% reduction in waste intensity (vs. FY2022)
	Promote recycling	90% recycling rate
	Minimize water use	18% reduction in water withdrawal (vs. FY2022)
Contribution to a Nature-positive Society	Visualize and reduce environmental impacts on ecosystems surrounding our sites	Expansion of nature-positive models TNFD disclosure across all businesses operations
	Minimize environmental risks	Zero major environmental incidents, legal violations, and complaints

Category	FY2025 Target	FY2025 Result	Status	Related Page
GHG Emissions	30% reduction in total emissions (vs. 2018)	33.5% reduction	○	Responding to Climate Change
Energy Use	2.0% reduction in energy intensity (vs. FY2025)	3.1% reduction	○
Renewable Electricity	8.0% increase in renewable energy share (vs. FY2022)	13.5% increase	○
Waste (excluding valuable materials)	3.0% reduction in waste intensity (vs. FY2022)	26.4% reduction	○	Contributing to a Circular Society
Waste Recycling	80% recycling rate	81%	○
VOC Emissions	Reduction in Sumitomo Riko's emissions to below the FY2017 levels	59% reduction	○	Appropriate Chemical Substance Management
Chemical Substances	Continuously addressing new regulations	Compliance with revised Chemical Substances Control Law, EU REACH, and revised TSCA	○
Environmental Incidents	No major incidents, legal violations or complaints	5 legal violations, 1 complaint	×	－
Water Withdrawal	3.0% reduction in total withdrawal (vs. FY2022)	12.8% reduction	○	Responding to Water Risks
Disclosure	Completion of preparations for TNFD disclosure	Development of the Komaki Model Assessment of water-related impacts	○	Contributing to a Nature-positive Society

○: Target Achieved ×: Target Not Achieved

The targets were established through a backcasting approach based on the Medium-Term Environmental Targets 2030.

Category	Target	Action Plan
GHG Emissions	35% reduction in total emissions (vs. FY2018)	Steady implementation of reduction initiatives and additional reductions through energy-efficiency assessments
Energy Use	2.0% reduction in energy intensity (vs. FY2025)
Renewable Electricity	23% renewable energy share	Planned deployment of solar power systems and procurement of renewable energy certificates
Waste (excluding valuable materials)	1.0% reduction in waste intensity (vs. FY2025)	Defect reduction, yield improvement, and promotion of waste-to-resource conversion
Waste Recycling	82% recycling rate	Expand end uses for recycled materials
VOC Emissions	Reduction in Sumitomo Riko's emissions to below the FY2025 levels	Continuous implementation of VOC reduction measures
Chemical Substances Management	Continuously addressing new regulations	Monitor emerging regulations and communicate relevant requirements internally
Environmental Incidents	No major incidents, legal violations or complaints	Continued site audits and ongoing communication of environmental regulatory information
Water Withdrawal	1.0% reduction in total withdrawal (vs. FY2025)	Promote efficient water use and recycling
Disclosure	Initial TNFD disclosure at select domestic sites	Promotion of the nature-positive model Expansion of TNFD disclosure coverage

* The denominator used to calculate the intensity of each performance indicator is net sales.
* Details on each issue are available on the related page.

The Sumitomo Riko Group operates more than 50 manufacturing sites worldwide. The Environmental Promotion Department works closely with the Carbon Neutral Promotion Office and the Global Promotion Office to support environmental initiatives and promote information sharing across the Group through its sites and business divisions.
As environmental regulations become more stringent and expectations for environmental conservation continue to rise, the Group is strengthening its environmental management. To realize our Long-Term Environmental Vision 2050, we will continue to share information, monitor progress, and foster communication across the Group.