Sumitomo Chemical

No leading practices were identified for the company in the governance and strategy measurement area.

No leading practices were identified for the company in the environment measurement area.

No leading practices were identified for the company in the nutrition measurement area.

No leading practices were identified for the company in the social inclusion measurement area.

Sustainable development strategy
Sumitomo Chemical identifies material issues yearly, establishes at least one key performance indicator (KPI) for each one and sets time-bound targets for most of them. Current material issues include climate change mitigation, measured by group-level GHG emissions amount, and food issues, measured by agricultural land area where biofortification products are used. Other material issues with KPIs are healthcare, ICT innovation, and diversity, equity and inclusion. Sumitomo Chemical has an opportunity to create targets around the impact of its products and projects on nutritional outcomes.

Governance and accountability for sustainable development strategy
Sumitomo Chemical has a Sustainability Promotion Committee, formed by all executive officers and all presidents of regional headquarters, that provides guidance to the company departments, business sectors and laboratories, and report to the board of directors. Variable remuneration includes the Government Pension Investment Fund’s (GPIF) ESG index selection. Nevertheless, Sumitomo Chemical has an opportunity to enhance its remuneration policy by linking it to the benchmark dimensions, creating stronger incentives for the pursuit of its own sustainability objectives.

Stakeholder engagement
Sumitomo Chemical communicates with different groups of stakeholders to discuss relevant topics for each. However, it is unclear whether there is a relationship between this communication and the identification of material areas which form the basis of the creation of KPIs.

Scope 1, 2 and 3 greenhouse gas emissions
Sumitomo Chemical has targets to reduce scope 1 and 2 greenhouse gas (GHG) emissions by 30% by 2030 and by more than 57% by 2050, against the baseline year of 2013. In 2019, a 24% reduction had been achieved. It also has a target to reduce overall scope 3 emissions by 2024 against the baseline year 2013. The company further discloses progress against the target, with most of its scope 3 category data being assured by a third party. However, there is an opportunity for the company to ensure external verification of the targets to show they are aligned with a 1.5-degree trajectory.

Soil health and agrobiodiversity
Sumitomo Chemical discloses a sales target for its more sustainable products, i.e. those certified as Sumika Sustainable Solutions, which includes a category for ‘contributing to reducing environmental impact in food production’. However, it has an opportunity to strengthen its target to increase the percentage of production from sustainable practices that improve soil health and agrobiodiversity, by reporting progress against the target and disclosing quantifiable data on its impact on soil health and agrobiodiversity.

Fertiliser and pesticide use
Sumitomo Chemical reports its aim to launch more sustainable fertiliser and pesticide options. These include biorationals (microbial pesticides, plant-growth regulators, biorational rhizosphere microbial agricultural materials), seed treatment agents (accurate treatment of seeds with seed treatment agents prior to sowing makes it possible to substantially reduce the spraying dosage and frequency of crop protection products) and insect communication disruptors (harmless for any other species). The company could amplify its impact in this area by combining them with efforts to optimise fertiliser and pesticide use among farmers and disclosing its impact.

Water use
While the company discloses a water efficiency target, it does not demonstrate quantitative reductions in water withdrawals across its own operations.

Plastic use and packaging waste
Sumitomo Chemical reports that is creating more durable plastic products to reduce the volume of plastics used. However, the company does not have a target to reduce plastic use in its own operations, nor any time-bound target or quantitative disclosures on the topic.

Availability of heathy foods
While Sumitomo Chemical reports that it improves the nutritional quality of poultry through enhancing the composition of poultry feed, it has an opportunity to set a commitment and target that contribute to increasing the production, quality and variety of healthy and nutritious foods.

Accessibility and affordability of healthy foods
Sumitomo Chemical has a commitment to contribute to the safe and secure supply of food. However, it does not provide sufficient evidence that it collaborates with value chain partners to improve accessibility and affordability of healthy food across the value chain. It has an opportunity to develop commercial activities designed to make healthy foods more accessible and affordable for vulnerable groups.

Workforce nutrition
Sumitomo discloses that it provides healthy food at its canteens and specific individual nutritional and health guidance to 100% of its employees. It has an opportunity to develop its workforce nutrition programme further through the provision of nutrition education, nutrition-focused health checks and breastfeeding support throughout its operations.

Child and forced labour
In its Respect for Human Rights statement and Human Rights Policy, Sumitomo Chemical states that it asks suppliers to prohibit child and forced labour but does not require them to do so. This statement does not translate to a commitment by the company to prohibit the use of child and forced labour.

Living wage
The company does not disclose that it pays its workers a living wage or requires its suppliers to do the same. Neither has it set targets to do so in the future.

Health and safety of vulnerable workers
The company does not disclose that it specifically recognises the health and safety risks to vulnerable groups, such as migrant and temporary labourers, women and young farmers.

Farmer and fisher productivity and resilience
The company does not disclose a commitment or examples of activities to support the resilience, productivity and access to markets for farmers, fishers and/or small-scale producers in its supply chain.

Land rights
Sumitomo Chemical does not have a commitment to recognise and respect legitimate tenure rights related to the ownership and use of land of indigenous peoples.

Sumitomo Chemical commits to respecting human rights and the ILO core labour rights in its operations, and expects its suppliers to respect the ILO core labour rights of their workers. In addition, the company has in place grievance mechanisms that are accessible to workers and external stakeholders. While Sumitomo Chemical discloses its process for identifying salient human rights risks in its operations and supply chain, it fails to disclose these externally. Neither does the company disclose how it assesses and takes action on the human rights risks identified. Moreover, Sumitomo Chemical does not demonstrate how it engages with affected and potentially affected stakeholders.

Sumitomo Chemical commits to respect the health and safety of its workers, but does not disclose a statement expecting its suppliers to do the same nor demonstrate that it monitors their health and safety performance. In addition, the company can improve its quantitative reporting by disclosing the number and rate of high-consequence injuries. Related to gender equality and women’s empowerment, the company is a signatory of the Women Empowerment Principles and set a target to increase women in management positions but can improve by instating more female board members and disclosing on gender pay gaps. Moreover, the company discloses data on workforce composition by gender but lacks disclosure on other markers of diversity such as age and ethnicity. Sumitomo Chemical does not commit to paying a living wage or prohibiting excessive working hours. Neither does it disclose collective bargaining agreement coverage in its operations.

Sumitomo Chemical commits to protect personal data and provides a privacy policy on its uses. However, this policy does not include a statement on access to personal data. The company discloses a global tax strategy, but does not disclose who is accountable for this nor report on tax payments for each of its tax jurisdictions. Sumitomo prohibits bribery and corruption, provides a whistleblower channel and discloses its process to identify related risks and impacts. However, it does not demonstrate it includes bribery and corruption clauses in contracts with business relationships. Finally, the company does not disclose a policy setting out its approach to lobbying and political engagement nor report on related expenses.