Global Environmental Conservation

Environmental Management

Environmental Preservation Principles

Basic Principles

The SWS Group shall implement business activities to create an affluent society with full consideration for environmental preservation.

Environmental Preservation Action Guidelines

① Make efforts to develop and improve eco-technology (also known as “green engineering”) in every field of product planning, development, design, manufacturing methods, production, logistics, usage and disposal aiming at product manufacturing, with consideration given to influence on ecosystems and protection of resources.
② Determine self-imposed restraints to reduce impact on the environment, in addition to observing environmental regulations by the government, local public bodies and other organizations.
③ Conduct an environmental audit to check the progress of environmental preservation plans and job performance levels in order to maintain and improve the level of environmental management.
④ Improve environmental awareness in the SWS Group, including overseas sites, and promote environmental preservation activities through communication with local communities.

Environmental Slogan

Environmental Management System

In FY2017, the SWS Group reviewed the environmental management system (EMS) system, which had been implemented mainly by the environmental special committee, overseas companies, and four regions in Japan; and reorganized it into a division-led system with an environmental manager in each business unit. At the same time, we have complied with the revised version of ISO 14001:2015, and overseas bases have also completed the transition.

Recently, we focused on strengthening compliance and environmental risk countermeasures by sharing the strengths and weaknesses of each company, based on an environmental diagnosis that checks the status of compliance with global environmental standards.

In the future, we will not only the environmental diagnosis but also handle audits remotely to establish an internal audit system that complies with international standards.

Environmental Audits

We conduct environmental audits to ensure that the environmental management systems of our domestic group companies are being appropriately operated and maintained in accordance with ISO 14001. The FY 2022 audit found no instances of noncompliance throughout the company.

Legal Violations and Environmental Accidents

In FY 2022, there were no legal violations or environmental accidents (those instructed by the government to provide guidance, recommendations, or fines) in the SWS Group.

Environmental Education

To achieve environmental management, it is essential to improve each employee's environmental awareness and knowledge. Our group implements a variety of environmental education programs for various levels of employees, including new employees, employees transferred from other regions, and canditates for internal auditor.

Since the spread of COVID-19, we expanded our remote education program using the e-learning management system.

Material Balance (in Japan) (FY2022)

SWS Group Environmental Action Plan

The SWS Group has sought to cultivate stronger relationships with the global community toward reducing environmental impact at every stage of the product life cycle, from development to disposal. In FY 2018, we introduced the Action ECO-22V campaign of Sumitomo Electric Industries, Ltd. to implement environmentally sound activities through our business.

Climate Change Mitigation

Greenhouse Gas Emissions (Global)

The SWS Group considers the prevention of global warming to be one of the most important issues in the environmental field, and we are making concerted group-wide efforts to realize Clean Factory.

With the acquisition of SBT certification by the SEI Group, we set a target to reduce greenhouse gas emissions for the entire group by 10% in FY2022 compared to FY 2018, and achieved the target with actual results of 324 thousand tons, a decrease of 12.1%. As measures to reduce emissions, we promoted the purchase of renewable energy-derived electricity mainly at our overseas plants and the introduction of solar power generation, and conducted a medium-term reduction plan for CO2.

From the next fiscal year onward, we will continue to promote activities toward carbon neutral throughout the SWS Group.

Reduction in Per Unit Energy through Energy Saving (Global)

We achieved our goal of reducing energy consumption per production unit by 12.1% compared to base year production volume per unit of production, due in part to solar panel installation and the renewal of equipment.

Each year, we established a system where each site formulates an annual plan for energy conservation and report on its progress. We also aggregated the reported figures and provided feedback to raise and instill awareness of energy conservation. In addition, a collection of improvement case studies, together with videos of improvement methods, is posted on the company intranet for sharing.

Since the past, we made a system to conduct environmental diagnoses at each site and reported the results to the head office. It focused on five items: Environmental laws and regulations, environmental risks, environmental management, energy conservation activities, and waste reduction activities.

In FY2021, we could not provide environmental guidance at each site due to the spread of COVID-19. However, we will provide feedback on the strengths and weaknesses of our energy conservation activities based on the results of the self-diagnosis at each site and incorporate the issues and themes into our annual energy conservation plan.

Value Chain Initiatives

Promotion of Green Procurement

We distribute Green Procurement Guidelines to our clients and promote initiatives for environmental conservation through our business activities. The collection rate of guideline agreement forms in FY2021 was 100% in Japan and 89% overseas. In addition, we established rules for green procurement of stationery, office supplies, and office equipment used in business, and promote the preferential purchase of Eco Mark and Energy Star Mark products. We also share the environmental policies of car manufacturers and actively cooperate in environmental activities.

Reduction of CO2 Emissions from Logistics (in Japan)

Emissions of CO2 from logistics in Japan were reduced by 17.4% from FY 2017, indicating the impact of activities to reduce CO2 emissions in transportation. Moreover, we shortened the transportation distance and introduced full trailers and many additional modal shift* initiatives such as ferry transportation in FY 2017 to further reduce CO2 emissions.

Glossary

Modal shift* Switching freight transportation using trucks and other automobiles to railroads and ships with lower environmental impact

Resource Recycling and Control and Reduction of Substances of Concern

Waste Reduction (Global)

In FY 2022, the waste reduction rate per production unit decreased by 26% from FY 2017 as a result of efforts such as progress management by formulating waste reduction plans and information sharing through examples of waste reduction examples. We will incorporate these examples into the plan for the next year.

Control and Reduction of Substances of Concern

Toward strengthening the management of substances of concern, we adopted the system of the Sumitomo Electric Industries Group. For our Group companies in Japan, the amount of PRTR*-regulated substances released decreased by 11.5% from FY 2017. Substances subject to mandatory reporting included antimony and its compounds, methylnaphthalene, and nickel compounds.

Moreover, in compliance with the Law Concerning Special Measures against PCB Waste, the SWS Group stores PCB-containing devices, provides the required notifications, and follows through with disposal.

Conservation of Water Resources (Global)

Recognizing the importance of water resources as natural capital, the SWS Group conducts a wide range of initiatives to reduce water use at each site, for example by inspecting water pipes once a month and purifying used water for use in toilet drainage. Through these efforts of each company, the Group’s water consumption rate decreased by 20% in FY 2022 compared to FY 2017. We also conduct a water risk assessment at all SWS Group companies. Using the results, we are working to identify water risks that could affect the continuity of our business.

Conservation of Biodiversity

Under the environmental conservation philosophy of the SWS Group, global efforts are being made for conserving biodiversity.

SUMI PHILIPPINES WIRING SYSTEMS CORPORATION (SPWS) is working with the environmental group ENRO Bataan to promote the importance of marine conservation through a mangrove reforestation project, contributing to the conservation of the ecosystem.

Glossary

PRTR* A mechanism for assessing, collecting, and publicly releasing data about various types of harmful chemicals released into the environment, including source and quantity, and details as to whether or not they have been trans-ferred off-site for treatment with other waste

Environmentally Conscious Products

In May 2005, the SWS Group launched the Eco Symbol Mark Certification System (Environmentally Conscious Products certification system) based on ISO14021 compliant standards in order to contribute to global environmental conservation through its products.

Certification is carried out by the Environmentally Conscious Products Certification Committee, chaired by the company-wide environmental manager, which certified 4 new items in FY2022, bringing the total number of certified items to 94. The sales ratio of environmentally conscious products fell short of the FY2022 target of 90% or more, at 50%, due to a revision of the calculation method.

In addition, when developing new products or making major design changes to existing products, we conduct product environmental assessments and register them as Eco-minded Products, with a registration rate is 100%. We will continue to focus on environmental conservation through our products, aiming to increase the sales ratio of environmentally conscious products and the registration rate of Eco-Mind products.

Products Certified as Environmentally Sound in FY 2022