Key performance indicators (KPIs)

Sumitomo Chemical has recently established key performance indicators (KPIs) for seven material issues that it addresses as management priorities.

Material issues for social value creation

Material Issues

KPIs

SDGs Targets

Reducing environmental impact

Mitigation of climate change

Amount of reduction 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* 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

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

KPIs are to be determined

ICT innovation

Number of mobile devices using polarizing films

8.2

* The initiative designates the Group's products and technologies that can contribute to lessening effects of climate change or reducing the environmental impact of business activities and promotes their commercially viable development and widespread use.

Material issues for value creation in the future (creating both 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

Example of KPIs

The KPIs for the seven material issues were decided by the Sustainability Promotion Committee in October of 2019 after also considering the opinions of outside experts. The KPIs for the material issues for social value creation were established in accordance with 169 targets under the 17 Sustainable Development Goals and delineate how the Sumitomo Chemical Group will contribute to achieving each of these goals. With regard to the material issues for value creation in the future, Group-wide numerical targets were established to track progress on the promotion of technology innovation and research and development as well as initiatives for digital innovation, while KPIs for the promotion of diversity and inclusion will be established by each group company in light of the diverse circumstances surrounding each country and region. Sumitomo Chemical believes the KPIs will make it possible to better evaluate the progress of planned initiatives, while also promoting a more effective dialogue between the Company and its internal and external stakeholders.

* Example of target
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 value creation in the future (creating both social value and economic value)