Sumitomo Chemical recognizes that environmental and climate change problems present the Group with business opportunities, such as an increase in demand for products and technologies that help solve issues related to the environment and climate change by, for example, reducing GHG emissions. To seize these kinds of opportunities, the Environmentally Friendly Product Designation Committee (Sumika Sustainable Solutions Designation Committee) designates the Group’s products and technologies that contribute to such issues as global warming countermeasures, reducing environmental burden, and effective use of resources, as Sumika Sustainable Solutions (SSS) and encourages their development and widespread adoption.

We have also set targets based on sales revenue from SSS-designated products, and we have been monitoring the progress of our efforts using those KPIs. In addition, we include contributions to the creation of social value and SSS designation in the selection criteria for our employee commendation system.

Going forward, the Group will continue solving issues in order to build a sustainable society by devoting its attention to promoting the development and widespread use of SSS-designated products and technologies.

Note: The Environmentally Friendly Product Designation Committee (Sumika Sustainable Solutions Designation Committee) was established under the Responsible Care Committee.

The Process of SSS Designation

Environmentally Friendly Product Designation Committee

In fiscal 2022, the eighth year of this initiative, the number of SSS-designated products and technologies totaled 71, amounting to approximately 682.8 billion yen in terms of sales revenue. New designations were given to such products and technologies of Sumitomo Chemical and the Sumitomo Chemical Group as gallium nitride (GaN) epitaxial wafers for high frequency 5G communication applications, ecologically friendly pouch containers for liquid shower herbicides to replace spray containers, BENICA Natural Spray insecticide using only natural derived ingredients, organism-based crop protection products that can be used in eco-friendly agriculture, and SumiLarv^® 2MR and WALS^®, which contribute to vector control. The Company is now aiming to achieve sales revenues of 1,200 billion yen from SSS-designated products and technologies by fiscal 2030.

Sales Revenue of SSS-designated Products

Designation Requirements by Category

Category	Designation Requirements	Responses to the SDGs
Addressing Climate Change	①Contributing to reducing GHG emissions
	②Products, components, and materials used for the creation of new energy sources
	③Using biomass-derived raw materials
	④Contributing to adapting to the impacts of climate change
Reducing Environmental Impact	⑤Contributing to reducing waste and toxic substances, and contributing to reducing environmental impact
	⑥Contributing to reducing environmental impact in food production
Effective Use of Resources	⑦Contributing to recycling and energy-saving
	⑧Contributing to the efficient use of water
Others	⑨Other contributions to building a sustainable society	(depending on the item)

Note: Depending on the features of products and technologies, identification requirements may not fully correspond with contribution to the SDGs.

FY2022 Percentage of Products and Technologies in Each Certification Field

Sumitomo Chemical was awarded the Grand Prize in the 52nd Annual JCIA Technology Awards (May 2020) from the Japan Chemical Industry Association for its technology that enabled “the development and commercialization of a process for manufacturing propylene oxide (PO) using cumene, which has low environmental impact and is free from co-products” and in the 54th Annual Awards (May 2022) for its technology that enabled “the development and commercialization of a process for manufacturing sodium using hydrochloric (HCl) acid, which has low environmental impact.” In addition, Sumika Chemical Analysis Service, Ltd. was awarded the 21st Annual Environmental Technology Award (April 2021) from the Kinka Chemical Society for its “simple sampling technology for hydrogen quality evaluation for fuel-cell vehicles (FCVs).” These technologies have been certified as Sumika Sustainable Solutions.