Key Performance Indicator (KPI)

Sumitomo Chemical has recently established key performance indicators (KPIs) for initiatives related to our material issues for sustainable value creation.

Material issues for social value creation

Material Issues

KPIs

SDGs Targets

Reducing environmental impact

Mitigation of climate change

Amount of Group’s GHG emissions (Scope 1+2)

13.3

Contribution to reducing GHG emissions throughout the product life cycle (Battery-related materials)

13.3
Contribution through products and technologies

Sales revenue of Sumika Sustainable Solutions*1 designated products

Efficient use of energy and resources

Unit energy consumption

7.3

Number of petrochemical-related technology licenses

9.4
Contribution to the recycling of plastic resources*2

Various initiatives are underway, and KPIs are to be determined

Food issues

Effect of increasing production of animal protein including poultry

2.1

Agricultural land area where agro-solution products are used

2.4

Healthcare

Number of people protected by products for the control of tropical infectious diseases

3.3

Constant development of new drugs in areas where high unmet medical needs exist

ICT innovation

Number of mobile devices using polarizing films

8.2

Material issues for future value creation (creating social value and economic value)

Material Issues

KPIs

Promotion of technology innovation and research and development

Patent asset size

Initiatives for digital innovation

Digital Maturity

Promotion of diversity and inclusion

Each group company sets its own KPI in light of the environment facing each

  1. Our Group’s products and technologies that help to address global warming, reduce environmental impact and promote effective use of resources.
  2. Sumitomo Chemical Group Basic Policy Towards a Circular System for Plastics

Specifications of KPIs

We have set key performance indicators (KPIs) for initiatives related to our material issues for sustainable value creation, after the deliberation by the Sustainability Promotion Committee and considering opinions of outside experts. Regarding our material issues for social value creation, we have set KPIs by referring to the 169 targets of the 17 SDGs* to indicate specifically how we aim to contribute to resolving each issue. As for our material issues for future value creation, KPIs related to technology innovation and research and development and to digital innovation are set on a group-wide basis, while those related to diversity and inclusion are determined by each Group company in view of their respective circumstances, which vary by country or region. With the use of KPIs, we will manage the progress of our efforts, while also promoting dialogues with stakeholders in and outside the company.

  • Each of the 17 SDGs has specified targets. For example: “13.3 Improve education, awareness-raising and human and institutional capacity on climate change mitigation, adaptation, impact reduction and early warning.”

KPIs for material issues for social value creation

KPIs for material issues for future value creation (creating social value and economic value)

For specific initiatives, see below.
pages 66–67 of Annual Report 2020

Digest of Expert Opinion and Advice

Between July and August 2019, we met with outside experts to discuss the material issues that we will address as management priorities and our approach to the setting of KPIs for those issues and the appropriateness of our method.