P.19 Material Issues

19 01. Value Creation Stories for the Future

▶ 100SEED | (Sumitomo Corporation’s social contribution initiative) ｜ https://www.sumitomocorp.com/en/jp/100seed/index.html

Material Issues

Based on Sumitomoʼs Business Philosophy and Management Principles, we have identified Material Issues for resolving social challenges aimed at achieving sustainable growth into the future. Since our initial formulation of the Material Issues in 2017, and following two subsequent revisions, we established a new set of six Material Issues in 2024, coinciding with the launch of Medium-Term Management Plan 2026. By addressing these issues through businesses that leverage our strengths, we aim to not only create social value but also realize our vision of becoming “No. 1 in Each Field.”

▶ Material Issues ｜ https://sumitomocorp.disclosure.site/en/themes/12

Build resilient and prosperous society

Long-term goals Contribute to the development of local communities and economies

Overcome climate change

Long-term goals Contribute to the carbon neutrality of society p.41 Climate change initiatives

Preserve and regenerate natural capital

Long-term goals Achieve a world living in harmony with nature through initiatives including the building of a circular economy and supply chain management p.42 Natural capital initiatives

Respect human rights

Long-term goals Respect the human rights of all stakeholders in all businesses and supply chains p.42 Human rights initiatives

Develop talent and promote DE&I

Long-term goals Create workplaces that allow diverse employees to apply their capabilities with passion in their own ways p.46 Human Capital

Maintain and strengthen governance

Long-term goals Develop a robust governance system to enhance the corporate value p.50 Corporate Governance

Identification and review process

• Sumitomoʼs Business Philosophy
• Management Principles
• STEP 1 Consider identification methods Explore ways to identify material issues by referencing international guidelines and engaging with investors and experts to ensure sustainable growth together with society
• STEP 2 Organize and identify challenges Based on the SDGs, organize issues already addressed through our business activities and those to address going forward; taking into account our philosophy and values, as well as the roles we should fulfill in the future, identify and prioritize issues requiring focused action
• STEP 3 Verify issues for resolution by the Board of Directors The Corporate Sustainability Committee engages in discussion following dialogue with internal and external stakeholders, with issues discussed and resolved by the Management Council and the Board of Directors
• STEP 4 Review and update Periodically review the necessity of updates in light of our strengths, stakeholder expectations, and changes in the external environment