P.40 Sustainability Management

40 02. Foundations for Accelerating Transformation

Sustainability Management

Implementing sustainability management

Decision-making and execution of important Group sustainability-related management matters are performed by the Management Council and Executive Officers in accordance with internal regulations. To evaluate and manage varying sustainability-related risks and opportunities and support effective decision-making, the Management Council makes comprehensive decisions after consulting with advisory bodies. These include the Corporate Sustainability Committee, the Global HR Committee, the Compliance Committee, and the IT Strategy Committee. Our sustainability initiatives and responses to sustainability-related risks and opportunities are advanced through close collaboration among specialized bodies responsible for planning initiatives and promoting organization-wide implementation in their respective topic areas. These include the Corporate Sustainability Department, the HR Strategy Department, the HR Solutions Department, the Legal Department, the Information Technologies Planning & Promotion Department, and the Disaster Response & Safety Management Department, as well as related corporate bodies, such as the Corporate Planning & Coordination Department, which is responsible for formulating the Groupʼs overall management plans and key strategic initiatives. These functions work together with the topic leaders in each business group and overseas regional organization. Based on information gathered from the Groupʼs research organizations, business units, overseas offices, and other sources, they formulate and implement Group-wide policies and initiatives. Moreover, we have established the Sustainability Advisory Board, consisting of external experts on ESG issues, to obtain advice and recommendations on our overall sustainability management.

• Board of Directors
• Management Council
• Corporate Sustainability Committee
• Discussion of relevant measures and information sharing
• Chairperson : Chief Sustainability, DE&I Officer
• Members : Group CFO, general managers of related corporate departments
• Secretariat : Corporate Sustainability Dept.
• (As of FY2026)
• Sustainability Advisory Board
• Dialogue with external experts on sustainability
• Members : External experts, Chairperson of Corporate Sustainability Committee
• Secretariat : Corporate Sustainability Dept.
• Structure for Group-wide implementation and promotion of sustainability-related measures
• Corporate Sustainability Department
• Business Group
• Corporate Group
• Domestic and overseas organizations

Function of the Board of Directors

The Board of Directors, guided by “Sumitomoʼs Business Philosophy” and a shared commitment to building a sustainable society, engages in strategic and focused discussions on important matters, such as business policies and management plans. Through appropriate delegation of authority to the executive side, the Board of Directors narrows down matters requiring resolution. Via an “agenda-setting” process, in which all Directors discuss and determine key management issues to be addressed over the coming year, the Board of Directors identifies important themes such as sustainability and the human resource strategy. At its regular meetings and in off-site sessions, the Board of Directors deliberates and decides on sustainability-related policies and measures. It also actively exchanges views on various matters, such as the progress of each SBUʼs medium-term targets, the status of human rights due diligence, social contribution activities, and disclosure policies based on the Sustainability Disclosure Standards (SSBJ Standards) and the Taskforce on Nature-related Financial Disclosures (TNFD). In these ways, the Board of Directors works to enhance the effectiveness of sustainability management.

Main topics discussed and reported in FY2025

Board of Directors

• [Climate change] Updating of carbon neutrality targets
• [Natural capital] Risk management status in high-risk businesses and TNFD-aligned disclosures
• [Social and environmental risk cases] Engagement with NGOs and other stakeholders
• [Social contribution activities] Participation in 100SEED and global activity outcomes

Corporate Sustainability Committee

• Progress of each SBUʼs initiatives based on material issues
• Updating of carbon neutrality targets
• Climate change initiatives
• Natural capital initiatives
• Human rights initiatives
• Status of social and environmental risk management
• Progress toward compliance with SSBJ Standards
• ESG ratings
• Environmental management activities
• Social contribution activities

Sustainability Advisory Board

• Strengthen the sustainability promotion framework
• Updating of carbon neutrality targets
• Natural capital initiatives
• Human rights initiatives
• Climate change initiatives