Result of CSR Procurement

In July 2008, we revised our Basic Procurement Principles with a view to further promoting responsible procurement, strengthening compliance as a global company, and enhancing the internal control system. The revised version clearly states that Sumitomo Chemical will "give preference to those suppliers that are committed to CSR." In addition, we revised the Procurement Code of Conduct and the Raw Material Procurement Operation Rules. We also clearly state our basic responsible procurement policy in the Group Business Standards of Procurement that apply to both domestic and overseas Group companies.

(1) Creating a guidebook and check sheets for responsible procurement
We have reviewed our conventional procurement process and established a clearer responsible procurement system to promote responsible procurement among Sumitomo Chemical and Group companies.
Under the new system, we ask suppliers to address the specific items set forth in the Sumitomo Chemical Supply-Chain CSR Deployment Guidebook. Sumitomo Chemical aims to help its suppliers address their issues by monitoring and providing feedback on the results of their self evaluation using the Sumitomo Chemical Supply-Chain CSR Deployment Check Sheets and help them implement their improvement plans by repeating the PDCA cycle.

(2) Updating "Procurement Information" on Our Website
We have updated the "Procurement Information" section of our website to provide our stakeholders with more information about our responsible procurement initiatives. Suppliers can now download the Sumitomo Chemical Supply-Chain CSR Deployment Guidebook and Sumitomo Chemical Supply-Chain CSR Deployment Check Sheets from the website and evaluate themselves based on the evaluation criteria defined by the Company.

As part of the promotion of responsible procurement among Group companies both in Japan and overseas, Sumitomo Chemical held an information meeting to explain the new system as well as to provide an opportunity to exchange ideas.

(1)Information meeting with domestic Group companies
In November 2008, Sumitomo Chemical introduced the new responsible procurement system to 13 domestic Group companies and proposed that they collaborate in implementing responsible procurement.

(2) Information meeting with overseas Group companies
In February 2009, Sumitomo Chemical held its 4th Global Meeting on Raw Materials Procurement to explain the new responsible procurement system to eight overseas Group companies and provide them with an opportunity to exchange opinions.