Following Japan’s declaration of its intention to achieve carbon neutrality by 2050, decarbonization initiatives have gained momentum. Meanwhile, the COVID-19 pandemic has led to heightened consciousness throughout society of the vital importance of health. And there is growing awareness of the need to secure human rights throughout supply chains. There are among the pressing issues confronting all of us. We will show you what Sumitomo Group companies are doing to tackle these social issues in the course of their business activities.
Click a social issue for an explanation of the issue and articles on what Sumitomo Group companies are doing to tackle it.
Among greenhouse gas (GHG) emissions implicated in global warming, carbon dioxide (CO2) emissions are a major culprit. Hence the importance of initiatives to reduce CO2 emissions in the drive to achieve net zero GHG emissions, i.e., carbon neutrality. In order to limit the global average temperature increase and achieve net zero GHG emissions in the second half of the 21st century, which are among the goals of the Paris Agreement, the Japanese government has set a target of a 26% reduction in GHG emissions by 2030 compared with 2013. In October 2020, the prime minister declared that Japan intends to achieve carbon neutrality by 2050.
A supply chain is the entire system for producing and delivering products and services from the sourcing of raw materials through to delivery to end-users. Since the weight accorded ESG (environmental, social, and governance) initiatives in the assessment of corporate value is large and growing, companies are coming under increasing pressure to respond to various issues throughout their supply chains, which include their subsidiaries and affiliates as well as their suppliers of raw materials and other items. The issues related to supply chain are diverse. They include not only environmental impacts, such as emissions of CO2, discharge of sewage, emissions of harmful substances, destruction of forests, and pollution of the oceans, but also human rights and suppliers’ workplace environments, corporate governance, and so on. If a company fails to handle these supply chain issues appropriately and neglects information disclosure, its business will likely suffer.