Governance (Effective Governance Framework)

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Governance (Effective Governance Framework)

  • The Sumitomo Rubber Group
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Management Approach

The Sumitomo Rubber Group considers the enhancement of corporate governance to be one of its major management objectives. Accordingly, we are pursuing a variety of initiatives to strengthen the relationship of trust between us and society and improve our operations in terms of fairness and transparency.

In addition, we maintain robust communications with stakeholders, to ensure that we stay keenly aware of the responsibilities we are called on to fulfill and other stakeholder expectations. The input gleaned from these communications is reflected in our business activities as we aim to remain a company deserving of trust of all stakeholders.

Sumitomo Rubber Group Stakeholders

Targets and Results Relative to Sustainability Initiatives

  • The Sumitomo Rubber Group

In line with the Sumitomo Rubber Group’s Long-Term Sustainability Policy: “Driving Our Future Challenge 2050,” we verify results achieved thus far against targets specified under this policy and then formulate targets for the upcoming fiscal year.

Here, we present targets and results for each item.

Targets under the Long-Term Sustainability Policy PLAN
Fiscal 2022 Target
Fiscal 2022Activity Results
Fiscal 2023 Target
Enhancing Corporate Governance
  • Increasing the Diversity of Board Members
  • Establishment of a Framework for Improving the Effectiveness of the Board of Directors with an Eye Toward External Changes & Our Shifting Business Situation
Update the skill matrix based on the Midterm Plan while promoting discussions to identify Director and Audit & Supervisory Board Member candidates from the perspective of securing diversity Discussed our definitions of a well-balanced Director composition vis-à-vis the skill matrix and incorporated diversity requirements into the Policy of Election and Dismissal Standards for Directors and Audit & Supervisory Board Members to enhance the Board of Directors’ diversity 100% Continue discussions regarding the selection of candidates for Directors and Audit & Supervisory Board Members from the perspective of securing diversity, with the aim of establishing a management team capable of improving corporate value
  • Improving the Effectiveness of Governance
  • Analyzing the Results of Third-Party Assessments to Enact Measures to Enhance Effectiveness
Implement various measures to enhance the Board of Directors’ effectiveness based on results of questionnaires and confirm the outcomes of such measures Implemented such measures as reviewing standards for agenda items requiring a Board of Directors resolution while conducting questionnaires regarding the Board’s effectiveness. Confirmed that issues specified in the course of the third-party assessment conducted in 2021 were addressed and improved 100% Continue implementing questionnaires regarding the Board of Directors’ effectiveness and push ahead with efforts to address issues and enhance its effectiveness so that the Board can gain greater governance capabilities
Thoroughgoing Compliance
  • Transparency with Respect to Taxes
  • Formulation of Tax Policy
  • Enactment of Global Tax Strategy (2025)
Discuss the content of tax-related information to be disclosed
Execute the global tax strategy
Assessed the status of taxes paid in each country

Discussed the profitability of overseas Group companies as part of the global tax strategy
100% Continue collecting information regarding taxation systems in each country

Discuss the global tax strategy (assessment of the profitability of overseas Group companies, tax planning, etc.)
  • Instilling “Our Philosophy”
  • 80% Supportive Response on “Our Philosophy” Entrenchment Survey (2030)
Phase 2 “Understanding”
⇒ Phase 3 “Empathy” Nurture a sense of ownership regarding Our Philosophy
Hosted “Our Philosophy Entrenchment Boost Seminars” in the first quarter

Held a total of 20 rounds of seminars in the workshop format, with approximately 3,000 employees taking part in these seminars
Encouraged attendees to think about Our Philosophy from perspectives of their own duties and operations
100% Phase 3 “Empathy”

⇒ Phase 4 “Practice”: Practice various initiatives to embody Our Philosophy
Degree of Our Philosophy’s entrenchment 70% Promote activities to facilitate the entrenchment among factory technicians
Supply Chain Management
  • Actively Seeking Third-Party Assessments (EcoVadis)
  • Aim to procure 95% of tire raw materials on a purchase value basis from suppliers who earn scores of 45 or higher (2030)*
    Note: Plans call for expanding the scope of third-party assessments to include businesses other than the Tire Business
Procured 82% of raw materials (purchase value basis) from suppliers who earned standard scores (45 points or more) 100%
Supply Chain Management for the Environment
  • Sustainable Natural Rubber (SNR) Policy
  • Raw Material Procurement in Line with the SNR Policy
  • By 2030: The SNR Policy applies to key suppliers
  • By 2050: The SNR Policy applies to all suppliers
Participate in the Global Platform for Sustainable Natural Rubber (GPSNR) and establish a framework and structure that enables us to remain attuned with industrial trends Attended an ordinary meeting of GPSNR members, took part in a working group and otherwise contributed to GPSNR 100% Continue acting as a member of GPSNR and maintain a structure that enables us to remain attuned with trends in the industry and among other companies
Submitted a report in conformity with reporting requirements defined by GPSNR
Achieve KPI targets defined by GPSNR, in addition to identifying activity items to secure conformity with the EU Deforestation Regulation (EUDR) and taking action accordingly
Contributed funds to support GPSNR’s Capacity Building Project

*With regard to the procurement of tire raw materials, more than 90% of suppliers (purchase value basis) have undergone third-party assessments, with the ratio of suppliers who earned standard or higher scores exceeding 80%. We have therefore set a new target for 2030, and we are now aiming to procure 95% of tire raw materials from suppliers who earn standard or higher scores.