To realize “Our Philosophy,” which is our corporate philosophy structure, the Sumitomo Rubber Group has identified material issues through studying the risks and opportunities of the entire value chain. We incorporate initiatives related to these material issues into our management strategies with the aim of addressing social issues and strive to enhance medium- to long-term corporate value. In October 2024, we updated our material issues based on the concept of double materiality, wherein we analyze issues from the dual perspectives of the impacts of the Company’s businesses on society and the impacts of society on the Company’s businesses.
The Company has identified the following seven material issues and will prioritize addressing them through its business activities. Society widely recognizes these issues, and we will fulfill our responsibilities as a global company. In addition, we have returned to our corporate philosophy and defined Our Vision as a natural rubber manufacturer, summarizing the Company’s intentions regarding the direction of our initiatives and the impact of our business.
| Material Issues | Vision | The Company’s Intentions |
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Innovation for Solving Social Issues
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A company that believes in the potential of rubber materials and strives to create new social value.
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The Company provides industry-leading rubber technologies in addition to new technologies and services that these technologies spawn. We are always striving to provide new value with the aim of creating a healthy and prosperous society full of joy.
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Climate Change
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A company committed to proactively reducing CO₂ emissions.
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The Company’s business activities produce a large volume of greenhouse gas emissions. To realize a decarbonized society, we are working to reduce emissions across the entire supply chain and achieve carbon neutrality by 2050.
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Circular Economy
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A company that promotes resource circulation through its products and services.
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The Company is a manufacturer that consumes many resources. To ensure the sustainability of its use of limited resources, we promote resource circulation throughout the entire process, from product procurement to disposal.
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Biodiversity
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A company that understands its dependence on and impact on natural resources, such as natural rubber, and works to coexist with surrounding ecosystems.
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The Company’s businesses entail risks that impact ecosystems using natural resources and chemical materials as well as the process of product usage. To ensure that the benefits of ecosystems and natural resources are passed on to future generations, we strive to minimize the negative impacts of our business activities and work towards the conservation and restoration of biodiversity.
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Human Rights
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A company that respects the human rights of everyone involved with us. |
The Company’s businesses are entwined with the lives of many people, including customers, suppliers, and those living around our bases. To continue providing joy and well-being for all, we enhance our understanding of human rights and promote efforts to respect human rights.
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Diverse Talents
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A company that develops together with diverse talents. |
The Company is a global entity that brings together diverse employees. We realize workplaces in which people mutually recognize each other and ensure that the total capabilities of our teams lead to increased corporate value.
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Governance
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A company that upholds integrity with our stakeholders and builds their trust. |
The Company is supported by its customers, suppliers, investors, and other stakeholders. We strive to be reliable and worthy of trust, and to build a strong and flexible management foundation that is responsive to turbulent changes in society.
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We have set long-term targets for our material issue-related initiatives as part of our “Driving Our Future Initiatives,” and we will set target values and monitor progress against actual results.
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* “Driving Our Future Initiatives” includes initiatives related to material issues and priority targets related to sustainability.
* “Driving Our Future Initiatives” is currently being updated based on material issues reviewed in October 2024.
For each material issue, we have indicated the processes in which we are particularly involved in the product value chain. All processes, from procurement to disposal and recycling, are closely related to material issues. We will strengthen cooperation between departments and work to resolve material issue-related issues throughout the entire Company.
In the process of identifying material issues, we use the concept of double materiality, wherein we analyze issues from the dual perspectives of the impacts of the Company’s businesses on society and the impacts of society on the Company’s businesses.
First, regarding the issues involved in the value chain, we created a list of issues based on international ESG-related indicators and disclosure guideline requirement, and then extracted more than 100 material issue candidates related to our Company. We also analyzed the risks and opportunities that societal and environmental changes pose to our Company. Next, we evaluated the relevance of the material issue candidates to our business areas and the associated risks and opportunities. We narrowed down the material issue candidates to 16 issues.
The main contents regarding the risks and opportunities of our business are as follows.
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Risks
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Opportunities
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| Decreased demand for products due to changes in customer lifestyles | Increased demand for safer and more environmentally friendly tires |
| Stronger regulations on greenhouse gas (GHG) emissions and chemical use/disposal | Expanded area of the Sports Business due to growing health consciousness and diversifying experience opportunities |
| Decreased productivity due to the loss of human capital, such as increased turnover | Increased demand for products that contribute to safe and comfortable life and urban development |
| Decreased sales due to penalties based on laws and regulations, and a decline in corporate value | Improved productivity through the employment of diverse talent and fair human resources systems |
| Increased corporate value through fair and transparent governance |
We analyzed 16 issues from multiple perspectives. For example, in the qualitative assessment conducted by the Company’s officers, we conducted interviews with directors and questionnaires with executives in charge of business operations, emphasizing the reflection of management’s intentions in identifying material issues. In the quantitative assessment conducted by the Company’s secretariat, we assessed the impact of the Company on society in terms of the number of people affected, geographical scope, and recovery time, while conducting a financial assessment of the effect on the Company. Furthermore, we conducted interviews with the following three parties to gather their expectations and requests for our Company, thereby incorporating the opinions of external stakeholders into our decision-making process.
Following the above analysis and the discussions at the Management Meeting, seven material issues were approved by the Sustainability Promotion Committee and reported to the Board of Directors.
