Sumitomo Chemical Engages in the Taskforce on Nature-related Financial Disclosures (TNFD) Forum
Advancing Green Transformation and enhancing nature-related information disclosure

Mar. 17, 2022

Sumitomo Chemical has engaged in the Taskforce on Nature-related Financial Disclosure (TNFD) Forum, a network of institutions contributing to the work of the TNFD, to show support for the vision of the taskforce and further advance its efforts to save ecosystems and use natural capital^*1 in a sustainable way while enhancing the disclosure of nature-related information of the Sumitomo Chemical Group. In its new Corporate Business Plan for the period from fiscal 2022 to fiscal 2024 announced in March of this year, the Company has made a commitment to advance a broadly-defined Green Transformation (GX) and work on major social issues, such as carbon neutrality and ecosystem conservation. The Company will also further enhance the disclosure of nature-related information through its engagement in this forum.

The TNFD is an international initiative launched in June 2021 by the United Nations Environment Programme Finance Initiative (UNEP FI), the United Nations Development Programme (UNDP), the environmental NGO Global Canopy, and the World Wildlife Fund (WWF). The TNFD aims to redirect flows of finance that have a negative impact on the natural environment toward nature-positive² activities by encouraging companies and financial institutions to disclose information about their dependence and impact on natural capital. The TNFD Forum is a network of companies and organizations having expertise in nature, finance and other areas and provides technical and other support to contribute to the TNFD’s efforts to develop a global framework for nature-related financial disclosures. Globally, more than 300 institutions^*3 have joined this forum.

Sumitomo Chemical has expressed its support for the Task Force on Climate-related Financial Disclosure (TCFD) recommendations since their publication in June 2017. The Company has engaged in the development of the TCFD guidance through dialogue between investors and companies, while also actively communicating its efforts with climate-related financial disclosures. Meanwhile, the Company, recognizing the sustainable use of natural capital, which contributes to ecosystem conservation, as a material issue that should be addressed as a management priority, set out "Sumitomo Chemical's Commitment to the Conservation of Biodiversity" in December 2011, and has since been operating its business under this commitment. For example, the Company has been implementing advanced plant wastewater treatment using microorganisms and catalyst technology, and also developing and providing biorationals,^*4 which contribute to reducing environmental impact, as well as products and technologies suitable for no-till farming,^*5 a farming method that helps to reduce soil erosion and conserve ecosystems.

Sumitomo Chemical will continue to enhance the disclosure of information on natural capital through the Sumitomo Chemical Report (Integrated Report), Sustainability Data Book, its corporate website, and other media.

*1      Capital formed by nature, including forests, soil, water, air, underground resources, and biological resources. Natural capital is a type of capital that is essential to supporting people's lives and the infrastructure of companies.

*2      A concept that aims to reverse the decline in natural capital and set it on a path to recovery by 2030. It was advocated at the 15th Conference of the Parties to the United Nations Convention on Biological Diversity (CBD COP15) and the 26th Conference of the Parties to the United Nations Framework Convention on Climate Change (COP26), both held in 2021.

*3      As of the end of February 2022

*4      The Sumitomo Chemical Group defines "biorationals" as products and microbes derived from natural sources or natural products themselves, such as microbial pesticides that protect crops from pests, plant growth regulators that improve and enhance crop quality and yield, and microbes that improve soil health.

*5      A farming method to grow crops by keeping from tilling the soil before sowing and instead leaving in farmlands fallen leaves of crops or stumps generated in previous farming seasons. This method is said to mitigate soil erosion caused by wind and rain and also bring positive benefits such as an increase in organisms and microorganisms in the soil.

Reference

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Sumitomo Chemical Co., Ltd.
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