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 initiatives are reviewed and approved by the CSR (Corporate Social Responsibility) Sustainability Committee, which establishes policies and assesses the overall status of environmental initiatives throughout the Group.
The CSR Sustainability Committee, chaired by the President, convenes biannually and presents its reports to the Board of Directors twice a year.

The Sumitomo Riko Group has obtained ISO 14001 certification, an international standard for environmental management systems, at its production sites both in Japan and overseas. This certification has been achieved at 11 locations in Japan and 40 locations outside Japan.

Items	FY2024 Targets	FY2024 Results	Status
Greenhouse Gas (GHG)	17.0% reduction in total emissions compared to FY2018	29.3% reduction	✓
Energy	2.0% reduction in energy intensity compared to the previous year	7.6% reduction	✓
Renewable Energy	0.6% increase in renewable energy ratio compared to FY2022	7.6% increase	✓
Waste (excluding recoverables)	2.0% reduction in waste intensity compared to FY2022	17.9% reduction	✓
Waste Recycling	Recycling rate of 80% or more	Achieved an 80% recycling rate	✓
Volatile Organic Compounds (VOC)	Reduction in Sumitomo Riko's emissions to below the FY2017 levels	51% reduction	✓
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	6 violations, 1 complaint	×
Water Withdrawal	2.0% reduction in total volume compared to FY2022	8.2% reduction	✓

Notes ✓:Target Achieved  ×:Target Not Achieved

Items	FY2025 Targets	FY2025 Plans
GHG	30.0% reduction in total emissions compared to FY2018	Continuous efforts to implement reduction initiatives and conduct energy audits
Energy	2.0% reduction in energy intensity compared to FY2024
Renewable Energy	8.0% increase in renewable energy ratio compared to FY2022	Planned deployment of solar power systems and acquisition of Renewable Energy Certificates
Waste (excluding recoverables)	3.0% reduction in waste intensity compared to FY2022	Defect reduction, yield improvement, and converting waste into recoverables
Waste Recycling	Recycling rate of 80% or more	Enhancement of recycling opportunities for waste materials
VOC	Reducing Sumitomo Riko's emissions to below FY2024 levels	Continuous implementation of VOC reduction measures
Chemical Substances	Continuously addressing new regulations	Early acquisition of new regulatory information and internal deployment
Environmental Incidents	No major incidents, legal violations or complaints	Ongoing site audits and communication of environmental regulatory information
Water Withdrawal	3.0% reduction in total volume compared to FY2022	Promotion of efficient water use practices and recycling initiatives

* 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 is committed to full compliance with environmental regulations. In fiscal year 2024, we reported six regulatory violations across our domestic and international sites. These included exceeding wastewater standards in Poland, two deficiencies in waste disposal contracts in Japan, omissions in fluorocarbon equipment inspection records in Japan, and incorrect reporting in the Safety Data Sheet (SDS) and inaccurate reporting of Volatile Organic Compounds (VOC) emissions in the United States. Additionally, we received one complaint regarding dust dispersion in Japan. We promptly addressed these issues and implemented measures to prevent their recurrence.
Going forward, we will prioritize efforts to eliminate violations of environmental regulations and strive for zero environmental incidents. To ensure strict compliance with environmental laws at each facility, we have established the Regional Environmental Task Force, composed of environmental managers from each site in Japan. Through this committee, we will provide information about revised regulations and share examples of regulatory violations. Additionally, we will conduct regular environmental audits at both domestic and international facilities to verify compliance and proactively prevent violations.
Furthermore, we have developed the Environmental Management Guidelines, which outline the principles and approaches to environmental management, as well as strategies for addressing potential issues. This document is used for training newly appointed site managers, executives, and environmental staff. Additionally, we have prepared and rolled out the Environmentally Friendly Construction Guidelines  within the organization, which summarize the environmental considerations for construction projects undertaken by each site. This guide aims to ensure compliance with regulations while minimizing inconvenience to neighboring communities.

The Sumitomo Riko Group operates globally, with production sites at 54 locations. The Environmental Promotion Department at Sumitomo Riko collaborates with the Carbon Neutral Promotion Office and the Global Promotion Office to provide guidance on environmental activities and facilitate information exchange, either directly with these sites or through the relevant business headquarters.
Amid the strengthening of environmental regulations and the growing demands for conservation efforts, the environmental management of the Sumitomo Riko Group must continue to evolve. To realize our Long-Term Environmental Vision 2050, we will foster information exchange, track our activities, and enhance communication as we move ahead.