The Sumitomo Rubber Group is working to realize the corporate philosophy system, “Our Philosophy,” by thoroughly ensuring social responsibility in procurement and logistics activities, aiming to reduce environmental impact, and striving to build a sustainable and highly reliable supply chain while enhancing transparency and efficiency.
Supply chain management, spanning from raw material procurement to product delivery, serves as the foundation that supports all seven material issues of our Group. Through collaboration with partner companies, we strive to create both economic and social value.
To realize sustainable procurement, the Sumitomo Rubber Group revised its Procurement Guidelines to the eighth edition in 2024, adding new initiatives such as system enhancements aligned with DX (Digital Transformation) management, the use of sustainable raw materials, and efforts toward carbon neutrality. At the same time, we have been working to strengthen partnerships with our suppliers.
To achieve sustainable procurement, we explain the following seven points to our suppliers.
1）Building sustainable relationships with our business partners: Strengthening BCP (Business Continuity Planning) and enhancing supply chain collaboration to promote sustainable procurement and reinforce partnerships, as well as conducting sustainability assessments.
2）Procurement activities utilizing digital technology: Responding to digitization and the accompanying systemization for DX management.
3）Natural rubber: Our initiatives on issues related to the environment and human rights in producing natural rubber, which is the primary raw material for tires.
4）Efforts to maintain and improve quality: Our Group’s quality policy, establishment of quality management systems, and management of changes, applications, and procedures
5）Sustainable raw materials: Circular economy concept for the Tire Business, sustainable raw material targets, promotion of activities, etc.
6）Considerations for the environment: Initiatives to achieve carbon neutrality, management of environmentally hazardous substances, and symbiosis with nature (forest conservation, consideration for biodiversity), etc.
7）Social and governance: Respect for human and fundamental labor rights, thorough compliance and information management, risk reduction through risk assessment, etc.
We request our business partners to confirm their understanding of the distributed guidelines, and as of now, approximately 90% of our tire raw material suppliers have signed and submitted an acknowledgment confirming that they have understood and received the guidelines.
Procurement Guidelines 8th Edition [Raw materials for tire](WEB Edition)(Japanese)
Procurement Guidelines 8 Edition 【Raw materials for tire】 Web Edition
Diretrizes de aquisição 8ª Edição [Para matérias primas de pneus](Versão Web)
Pedoman Pengadaan Edisi ke-8 [Bahan baku mentah untuk ban](Edisi Web)
แนวทางการจัดซื้อจัดจ้าง ฉบับที่ 8 [ส าหรับวัตถุดิบยางรถยนต์](รูปแบบอิเล็กทรอนิกส์)
We have been implementing Green Logistics Guidelines since 2007 to promote initiatives to reduce CO<sub>2</sub> emissions in the logistics stage by improving our logistics system. We accurately grasp customer and market demands and reliably deliver products that meet those demands, while also considering the global environment and conducting green logistics activities with our suppliers.
For details on our initiatives to reduce CO₂ emissions, please see the Climate Change page.
To efficiently monitor and assess human rights, governance, and environmental performance within our supply chain, we have been working with EcoVadis, an international third-party assessment organization, since January 2022. EcoVadis operates a platform for sustainability assessment, evaluating suppliers based on sustainability standards.
For new suppliers as well, we perform due diligence in a similar fashion, with an emphasis on assessing and mitigating corruption risks. If the results of our due diligence and assessment of a supplier fail to meet certain criteria, we ask that they make improvements. As a result of working with EcoVadis, the assessment criteria have been standardized, and we expect our assessment results and improvement recommendations to help our suppliers pursue sustainability efficiently.
In recent years, uncertainties surrounding corporate activities have increased significantly due to factors such as natural disasters and extreme weather events driven by climate change, labor shortages, geopolitical risks, labor disputes, and cybersecurity threats. As supply chains become more complex, the materialization of risks can lead to severe consequences, including rising costs and longer lead times caused by disruptions. Furthermore, external pressures such as growing supply constraints, intensifying global competition, and stricter sustainability-related regulations are accelerating.
These environmental changes also present an opportunity to review and strengthen the entire supply chain. By detecting potential risks early and stabilizing procurement upstream, and by building sustainable logistics systems and securing maritime transport downstream, we aim to establish a business foundation that is resilient to external volatility. In addition, we are working with partner companies to develop a flexible and robust supply chain.
Based on these risks and opportunities, our Group promotes the following strategies:
・Building a resilient and flexible supply chain
＞We will strengthen early detection of risk signals and implement mitigation measures upstream, while establishing sustainable logistics and maritime transport systems downstream to ensure stable and sustainable procurement and supply.
・Enhancing collaboration with partner companies
＞We will deepen cooperation across the entire supply chain to build a network resilient to external changes and pursue new value creation.
・Leveraging DX and AI for efficiency and advanced decision-making
＞We will actively adopt digital technologies to improve operational efficiency and enable swift, accurate decision-making.
・Strengthening the business foundation through external support programs
＞We will effectively utilize tax incentives, subsidies, and various support programs, including those related to the use of regional ports, to accelerate innovation and reinforce our management base.
To ensure that our procurement activities respond quickly to rapidly changing social conditions, we have launched a Sustainability Committee within the Procurement Headquarters to hold regular discussions on procurement risks. The risks identified and discussed at the committee are reflected in our risk assessment items and used in formulating our procurement strategy. These activities also raise risk awareness among member of the Procurement Headquarters.
Please refer to the Environmental Management System for information on the evaluation and auditing of suppliers’ efforts to comply with REACH regulations.
To build a stable logistics system, we are implementing measures to reduce truck drivers’ working hours and alleviate the workload of cargo handling operations at warehouses. In particular, we have begun strengthening operation management for drivers by leveraging digital technologies. For the tracing of import and export cargo, we utilize a supply chain visibility platform to enable real-time monitoring of transportation status, thereby contributing to logistics stability.
To further strengthen partnerships, we will create opportunities to share long-term plans with our logistics partners and deepen our collaborative relationships.
| 2025 target | Maintain 95% or higher |
|---|---|
| 2025 result | 98% |
| 2026 target | Maintain 95% or higher |
| Medium- to long-term target | Procurement of 95% of tire raw materials by purchase value from suppliers who score at least 45 points on the standard evaluation by 2030 |
Every year, members of the procurement departments from our bases in Europe, the Americas,
China, and Asia (including Japan) gather for a global meeting. In this meeting, we discuss strategies
for sustainable procurement, and as an ongoing agenda item, we review supplier evaluations with
consideration for eliminating procurement risks.
In conjunction with these updates, we organize workshops for our tire raw material procurement teams across the Group. These sessions highlight the reasons behind the revisions, key points, and reinforce our policies and guiding principles.
To reduce the burden on domestic logistics operations, we have introduced a range of measures at selected transportation routes and warehouses, including an entry time reservation system, relay transportation, auto floor vehicles, clamp lifts, rack transportation, vanning and devanning belt conveyors, cargo handling robots, and vests with fans. In addition, by increasing the number of support staff at warehouses, we continue to implement initiatives aimed at further alleviating the workload at logistics front lines.
To realize sustainable logistics, we have exchanged views on CO₂ emissions reduction not only with domestic logistics companies but also with other manufacturers. Through these discussions, we are promoting the sharing of challenges and the consideration of improvement measures across the industry.
At our overseas bases, in line with our Group policy to reduce environmental impact on a global basis, each location is identifying new initiatives and strengthening efforts tailored to local characteristics.
We will transition to a sustainable and efficient logistics system by formulating medium- to long-term plans and conducting regular monitoring regarding joint delivery, consolidation of transportation networks, improvement of load efficiency, and the reduction of waiting and cargo handling time.
