Solutions: Contributing through Business ― Sumika Sustainable Solutions (SSS)

Sumitomo Chemical recognizes that climate change problems present the Group with business opportunities, such as an increase in demand for products that help solve issues related to the environment and climate change by, for example, reducing GHG emissions. To seize these kinds of opportunities, we are promoting an initiative to designate those of our products and technologies that contribute to such issues as global warming countermeasures, reducing environmental burdens, and effective use of resources, as Sumika Sustainable Solutions (SSS).

In addition, we set a KPI of GHG emission reduction contributions through the life cycle and sales revenues of SSS-designated products and are monitoring progress. Furthermore, one of the evaluation criteria for the employee merit award program is contributions to social value creation, including acquisition of SSS designation.

Going forward, the Company 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.

The Process of SSS Designation

The Designation Committee

The Sumika Sustainable Solutions Designation Committee is established under the Responsible Care Committee.

In fiscal 2019, the fifth year of this initiative, Sumitomo Chemical newly designated six of its products and technologies as Sumika Sustainable Solutions (SSS). With the addition of these six products and technologies, the total number of SSS-designated products and technologies is now 54, amounting to approximately 480 billion yen in terms of sales revenue in fiscal 2019. New designations were given to a high performance insulating coating material mainly used for automotive batteries, transfer technology used in the manufacture of flexible touch sensors, polypropylene materials for aluminum metallization film which can help decrease food loss as a food packaging material, and agricultural irrigation tubes that enable efficient use of water. These products and technologies are available from the Sumitomo Chemical Group. The Company is now aiming to achieve sales revenues of 560 billion yen from SSS-designated products and technologies by fiscal 2021, the final year of the current Corporate Business Plan.

KPI: Sales Revenue of SSS-designated Products

(Billions of yen)

 FY2019
Sales revenue of the Sumitomo Chemical Group 2,225.8
Sales revenue of SSS-designated products 479.8

Designation Requirements by Category

Area

Required conditions

Contribution to the SDGs

Addressing Climate Change

①Contributing to reducing GHG emissions

7 AFFORDABLE AND CLEAN ENERGY 13 CLIMATE ACTION

②Products, components, and materials used for the creation of new energy sources

7 AFFORDABLE AND CLEAN ENERGY 13 CLIMATE ACTION

③Using biomass-derived raw materials

12 RESPONSIBLE CONSUMPTION AND PRODUCTION 13 CLIMATE ACTION

④Contributing to adapting to the impacts of climate change

13 CLIMATE ACTION

Reducing Environmental Impact

⑤Contributing to reducing waste and toxic substances, and contributing to reducing environmental impact

12 RESPONSIBLE CONSUMPTION AND PRODUCTION

⑥Contributing to reducing environmental impact in food production

2 ZERO HUNGER 12 RESPONSIBLE CONSUMPTION AND PRODUCTION

Effective Use of Resources

⑦Contributing to recycling and energy-saving

12 RESPONSIBLE CONSUMPTION AND PRODUCTION

⑧Contributing to the efficient use of water

6 CLEAN WATER AND SANITATION

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.

Designation Requirements by Category/Actual Environmental Contribution (FY2019)

  • Addressing Climate Change
    Contributed to reducing 62 million tons of GHG emissions (CO2 equivalent; a projection for 2020) through the life cycles of the designated products and technologies in this category
    Note: Calculated with reference to “New Perspective on Reducing Greenhouse Gases” by the Japan Chemical Industry Association and “Global Value Chain” by the Japan Business Federation.
  • Reducing Environmental Impact
    Contributed to reducing the use of organic solvents by 100 thousand tons per year by using the designated products and technologies in this category
  • Effective Use of Resources
    Contributed to reducing the use of water by 14.2 million tons per year by using the designated products and technologies in this category

In May 2020, Sumitomo Chemical was awarded the Grand Prize in the 52nd Annual JCIA Technology Awards 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.” This technology has been designated a Sumika Sustainable Solution.