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

Designation Requirements by Category

Area	Required conditions	Contribution 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.

Designation Requirements by Category/Actual Environmental Contribution (FY2019)

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.