Environmental Management

Basic Views

SHI Group is engaged in environmental management by establishing the "Sumitomo Heavy Industries Group Environmental Policy" based on its environmental philosophy, recognizing that global environmental conservation and circular economic activity are corporate social responsibilities.

SHI Group Environmental Principles and Policy

Environmental principles
SHI Group maintains the "Sumitomo's Business Philosophy" and sincerely works on global environmental conservation in all business activities toward the realization of a sustainable society.
Environmental policy
The SHI Group actively takes the initiative in implementing the activities listed on the right side according to the environmental philosophy.
  • Prevention of environmental pollution
  • Realization of a sustainable society
  • Compliance with laws and regulations
  • Contribution to low-carbon society
  • Preservation of biodiversity
  • Strengthening and continuous improvement of the environmental management system

Approaches based on the Environmental Policy

Approaches based on the Environmental Policy
A Medium-Term Environmental Plan that outlines specific activity targets is formulated every three years from FY2005 to enhance environmental management.

Environmental Management System

Environmental activity management for the entire SHI Group is carried out by the General Manager of the General Administration Group and the Environmental Management Division under the supervision of the director in charge of general affairs who has been appointed by the president. As chief executive, the President approves and determines the SHI Group's environmental policy.

Activities

Environmental audit (once/year)
We conduct environmental audits at our domestic manufacturing sites and ones in China and Southeast Asia from the perspectives of preventing environmental accidents, complying with laws and regulations, and preventing global warming.
The audit results are reported to the president and the officer in charge of general affairs.
The overview of these audits is reported by the general manager of the Environmental Management Division at the Executive Officers' Meeting, which consists of directors and all executive officers.
Examination by the General Manager of General Administration Group (as required)
For such divisions as where environmental accidents occurred or targets have not been reached during the previous fiscal year, we carry out and provide guidance on the "diagnosis of the general manager of the general affairs division" together with the environmental audit.
Environmental management meeting (twice/year)
Environmental management meetings are held to share reports on activity results and points at issue with works and affiliated companies in Japan. In addition, China environmental management meetings involving affiliated companies in China are held to improve the environmental activities of each of those companies.
Activities in each area
In each area, area meetings on themes such as global warming prevention and energy conservation are held to share information through reporting the progress of relevant activities and referring to actual cases.

Overview of the 5th Medium-Term Environmental Plan

The targets and activity results for FY2019 under the 5th Medium-Term Environmental Plan (FY2017-2019) are as follows.

Achievement status: ○ Achieved △ Achievement rate of 90% or higher × Achievement rate of less than 90%
Index Item Target Result
Achievement status Accomplishment
Evaluation of environmental risk management Review of the environmental policy Review of the environmental principles Reviewed versions issued
Review of the environmental policy
Prevention of environmental accidents through environmental risk reduction Zero occurrence of major environmental accidents Zero occurrence of major environmental accidents
Fewer than 3 environmental accidents per year Number of environmental accidents: 2
Continuous improvement of the environmental management systems of overseas bases Implementation of education for raising the level of environmental personnel Implementation of education during environmental audits
Establishment and expansion of risk assessment Continuance of activities in reference to the cases of mother plants in Japan
Management of chemical substances contained in products Management of chemical substances contained in products(RoHS, REACH) Verification of the management status through environmental audits
Reduction of CO2 emissions in the product life cycle CO2 emissions reduction during product manufacturing Energy productivity Japan: Increased by 3%
compared to FY2016
× Increased by 2.6%
compared to FY2016
Overseas: Increased by 3%
compared to FY2016
Increased by 20%
compared to FY2016
CO2 emissions reduction during product use Japan: Calculation and publication of the total contribution amount of CO2 reduction during product use Published in the Integrated Report
CO2 emissions reduction during product transportation (green logistics) Amount of reduction: Per basic unit of transportation weight Japan: Reduced by 3%
compared to FY2016
× Increased by 5.5%
compared to FY2016
Reduction of environmental loads
in business activities
Reduction of VOC emissions Amount of reduction: Total amount of use Japan (2 divisions): Reduced by 34% compared to FY2016 Reduced by 42%
compared to FY2016
Amount of reduction: Per basic unit of sales Japan (others): Reduced by 34% compared to FY2016 Reduced by 50%
compared to FY2016
Overseas: Reduced by 3%
compared to FY2013
Reduced by 61%
compared to FY2013
Planned disposal of PCB waste Planned disposal Verification of the disposal status through environmental audits, and continuance of disposal
Reduction of waste discharge and its effective use Amount of reduction: Per basic unit of sales Japan: Reduced by 6%
compared to FY2013
Reduced by 12%
compared to FY2013
Overseas: Reduced by 6%
compared to FY2013
× Increased by 10%
compared to FY2013
Landfill rate Japan: Less than 0.5% 0.004%
Non-landfill rate of waste disposal Overseas: 95% × 76%
Reduction of product packaging materials Amount of reduction: Per basic unit of sales Japan: Reduced by 6%
compared to FY2013
Reduced by 28%
compared to FY2013
Reduction of water consumption Amount of reduction: Total amount of use Japan: Maintaining the average amount used during the period from FY2014 to 2016 × Increased by 4.9% compared to the average amount of use during the period from FY2014 to 2016
Amount of reduction: Per basic unit of sales Overseas: Reduced by 3% compared to FY2013 Reduced by 21%
compared to FY2013
Preservation of biodiversity Reduction of CO2 emissions in the product life cycle Promotion of efforts on key issues Promotion of each division's efforts
Planting around offices Continued greening of factories Verification of the greening plan of each manufacturing base and its implementation status by environmental accounting

The 6th Medium-Term Environmental Plan

The 6th Medium-Term Environmental Plan (FY2020-2023) was formulated and has currently been implemented. This plan regards the following four items as material issues and, in terms of reducing CO2 emissions, seeks to address climate change by reducing total CO2 emissions generated during product manufacturing while also expanding the lineup of environmentally friendly products (those that generate less CO2 emissions when used).
As a specific target, we are working toward reducing total CO2 emissions by 1% compared to the level in FY2019.

Material Issues
  1. 1Enhancement of environmental risk management
  2. 2Reduction of CO2 emissions with actions addressing climate change taken into consideration
  3. 3Reduction of environmental loads in business activities
  4. 4Preservation of biodiversity
Index Item Base year Target value
Environmental management Zero environmental accident (Japan/overseas) - Zero serious environmental accident
- 3 environmental accidents or less
Response to climate change
(global warming prevention)
Reduction of CO2 emissions (total volume) (Japan) 2019 1% reduction per year
During production / Increasing energy efficiency (Japan)
During production / Increasing energy efficiency (overseas)
2019 1% improvement per year
1% improvement per year
During transportation / Promotion of green logistics (Japan) Maintain the FY2019 level
Environment-conscious product CO2 emissions reduction during product use 2011 Expand the number of products and increase contribution to reduction
Expansion of environment-conscious product -
  • Number of registered products: 23 products or more
  • Sales ratio: 30% or higher
Biodiversity Promotion of activities to address marine plastic problems - Set qualitative (quantitative) targets for each division, and promote activities
Promotion of recycling to save resources
(circular economy)
Reduction in waste generation (Japan) 2017~2019 Maintain the FY2017-2019 average in terms of the basic unit of sales
Reduction in waste generation (overseas) 2019 Maintain the FY2019 level in terms of the basic unit of sales
Continuance of the zero emission campaign (Japan) - Landfill rate: Less than 0.5%
Reduction of water usage (Japan) 2017~2019 Maintain the FY2017-2019 average
Reduction of water usage (overseas) 2019 Maintain the FY2019 level
Reduction in the volume of product packaging materials (including parts) (Japan) 2017~2019 Maintain the FY2017-2019 average in terms of the basic unit of sales
Promotion of environmental pollution prevention Controlling emissions of VOC substances subject to control (air pollutants) (Japan) 2019 Maintain the FY2019 level
Controlling emissions of VOC substances subject to control (air pollutants) (overseas) 2019 1% reduction per year

Green Procurement

Basic Views

SHI Group will strive to contribute to environmental conservation and to develop a sustainable society together with business partners through promotion of green procurement so as to be able to deliver environment-conscious products to customers. To this end, the SHI Group will procure goods and services that are useful for global warming prevention, the promotion of resource saving and recycling, and the prevention of environmental pollution, from business partners that, just like SHI, work on reducing environmental loads and conserving the environment.

Green Procurement Guidelines

The Green Procurement Guidelines specifically define the environmental consideration described in the CSR Procurement Guidelines. The Green Procurement Guidelines have been distributed to SHI Group divisions and affiliated companies and are utilized for selecting goods/services to be procured by the SHI Group.