October 19, 2023

Sumitomo Heavy Industries (Head office: Shinagawa-ku, Tokyo, President & CEO: Shinji Shimomura) received a higher rating in the 2023 Sustainalytics ESG Risk Ratings*1 assessed by Sustainalytics (Head office: the Netherlands), an international ESG assessment organization, improving from a High Risk rating in 2022 to Medium Risk in the current year.*2

SHI promotes sustainability-oriented management aimed at enhancing both its social value and corporate value. We do this under the business policies of “contribution to society through CSV initiatives” and “sustainable growth and development of SHI Group,” which are components of our Medium-Term Management Plan 2023 for the period from FY2021 to FY2023.

We will enhance our sustainability-oriented management and continue growing as a company that earns the trust of its stakeholders by focusing on information disclosure and improving our ESG ratings.

A summary of our Sustainalytics ESG Risk Rating is available on the Sustainalytics website.
https://www.sustainalytics.com/esg-rating/sumitomo-heavy-industries-ltd/1008752841

*1: The Sustainalytics ESG Risk Ratings are ESG risk ratings prepared by Sustainalytics, a member of the Morningstar Group. Sustainalytics evaluates ESG risk using an absolute value score and a five-level rating system based on a company’s business characteristics and geographic region of activity as well as the status of its efforts to address ESG issues.
A lower score signifies a lower ESG risk level and thus indicates that the company presents less of a risk. A score of 0-10 indicates Negligible, 10-20 is Low Risk, 20-30 is Medium Risk, 30-40 is High Risk, and 40 or above is Severe Risk.

*2: SHI received a 2023 rating of 27.3, which was an improvement of 7.2 points from the previous year’s rating of 34.5.