Sumitomo Chemical recognizes that environmental and climate change problems present the Group with business opportunities, such as an increase in demand for products and technologies that help solve issues related to the environment and climate change by, for example, reducing GHG emissions. To seize these kinds of opportunities, the Environmentally Friendly Product Designation Committee (Sumika Sustainable Solutions Designation Committee) designates the Group’s products and technologies that contribute to such issues as climate change mitigation and adaptation, contrib­ute to recycling resources, and sustainable use of natural capital, as Sumika Sustainable Solutions (SSS) and encourages their development and widespread adoption.

We have also set targets based on sales revenue from SSS-designated products, and we have been monitoring the progress of our efforts using those KPIs. In addition, we include contributions to the creation of social value and SSS designation in the selection criteria for our employee commendation system.

Going forward, the Group 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.

Note: The Environmentally Friendly Product Designation Committee (Sumika Sustainable Solutions Designation Committee) was established under the Responsible Care Committee.

The Process of SSS Designation

Environmentally Friendly Product Designation Committee

In fiscal 2023, the ninth year of this initiative, the number of SSS-designated products and technologies totaled 81, amounting to approximately 588.7 billion yen in terms of sales revenue. New designations were given to such products and technologies of Sumitomo Chemical and the Sumitomo Chemical Group as follows: Cosmoplene Circular PP, a polypropylene (PP) resin that is chemically recycled from plastic waste; AES-11 and AES-12 alumina for use in lithium-ion secondary battery separators; adhesive lamination technology for manufacturing the polarizing films used in high-end small- and medium-sized OLED display devices; Guntoner Natural Pyrethrin MC, a termite insecticide with naturally-derived active ingredients; and Guntoner Natural Pyrethrin MC for wood treatment. The Company is now aiming to achieve sales revenues of 1,200 billion yen from SSS-designated products and technologies by fiscal 2030.

Sales Revenue of SSS-designated Products

Designation Requirements by Category

Category	Designation Requirements	Responses to the SDGs
Climate change mitigation and adaptation	①Contribution to reducing greenhouse gas emissions
	②Products, parts, or materials related to renewable energy (including energy storage)
	③Using biomass-derived materials and effective in reducing environmental impact
	④Contribution to adapting to climate change impacts
Contribute to recycling resources	⑤Contribution to resource recycling (waste reduction, recycling, resource conservation, etc.)
Sustainable use of natural capital	⑥Contribution to reducing environmental impact, such as reduction of hazardous substances
	⑦Contribution to reducing environmental burden in food production
	⑧Contribution to efficient use of water resources
Others	⑨Other contributions to building a sustainable society beyond the above	(depending on the item)

Note: Depending on the features of products and technologies, identification requirements may not fully correspond with contribution to the SDGs.

FY2023 Percentage of Products and Technologies in Each Certification Field