Activity ReportSociety

We endeavor to earn the trust of society by promoting clean procurement of materials required for business activity and supporting and contributing to communities. In addition, we will cooperate with related business partners to comply with procurement guidelines, laws and regulations, social norms, etc., thereby working to improve mutual corporate values.

Promotion of clean procurement

Achieving clean procurement is an important factor for the Sumitomo Heavy Industries (SHI) Group to contribute to resolution of social issues through its products and services. As such, we will implement the following initiatives.

  1. 1Establishment and publicization of CSR Procurement Guidelines

We have established the CSR Procurement Guidelines by setting forth items that the SHI Group encourages its business partners to promote.

CSR Procurement Guidelines

The SHI Group aims to provide products and services that contribute to economic and technological development, with a view to realizing a sustainable society. To achieve this, we have recently established the CSR Procurement Guidelines. Cooperation from our business partners is essential for these initiatives. Our business partners are requested to promote each item of the guidelines, and we ask for their understanding and cooperation.

  1. 1.Human rights, labor, health and safety
Respect for human rights and prohibition of unfair discrimination, unreasonable labor conditions and harassment
We will not tolerate unfair discrimination, unreasonable labor conditions or harassment on the basis of age, sex, citizenship, race, place of birth, religion, belief, academic record, form of employment, physical and mental disabilities, status of marriage, etc.
Compliance with labor-related laws and regulations
We will comply with labor-related laws and regulations of a country and region where we conduct corporate activities, and will thoroughly manage industrial health and safety initiatives including wages. In addition, we will not tolerate forced labor and the use of children who are under the minimum age for employment.
  1. 2.Open and fair competition and trade practices
Realization of open and fair competition and trade practices
We will comply with laws and regulations of all countries and regions where we conduct corporate activities, and will not engage in acts that may limit or hinder open and fair competition and trade practices.
Protection of and respect for intellectual property
We pay respect to and do not infringe on intellectual property rights (rights related to patents, utility models, designs, programs, creative works, trade names, trademarks and other interests to be protected by law) held by third parties.
Prohibition of provision of illicit profit
We will comply with laws, regulations and business practices of a country and region where we conduct corporate activities, and will not provide illicit profit or request illicit services.
Compliance with laws and regulations related to import and export
We will comply with laws and regulations concerning international trade, and properly undertake import and export procedures.
Maintaining confidentiality
We will not acquire, use, disclose or divulge confidential, technical, personal or other information illegally or unjustly.
  1. 3.Compliance with laws, regulations and social ethics
Compliance with business laws
We will comply with laws and regulations of a country and region where we conduct corporate activities and will ensure thorough compliance.
Severance of relationships with anti-social forces
We must be firm against, and sever any relationships with, anti-social forces.
  1. 4.Improvement of product competitiveness and customer satisfaction
Ensuring quality and safety
We will provide products and services that comply with laws and regulations concerning product safety and satisfy requirements relating to quality and uses.
Strengthening of product competitiveness
We will promote VE offerings that contribute to cost reduction and will also promote the provision of information on optimal construction methods, technologies and materials.
Stable supply
We will reliably meet deadlines for products and services provided by us, and develop and operate a system that enables a stable supply.
  1. 5.Consideration of the environment
Compliance with related laws
We will comply with environmental laws and regulations of all countries and regions where we conduct corporate activities.
Efforts to achieve zero environmental incidents
We aim to achieve zero environmental incidents by performing environmental risk assessments on a continual basis.
Contribution to realization of low-carbon society
We will actively promote reducing the usage of electricity and fuel and effectively utilizing them.
We will endeavor to develop energy-saving products.
  1. 6. Information disclosure

We will properly and timely disclose information that relates to business management, finance, environmental preservation, social contribution, etc., and is useful for stakeholders, and will promote communication with society.

The Group’s basic policy for conflict minerals produced in the Democratic Republic of the Congo and its neighboring countries

In the Democratic Republic of the Congo (DRC), anti-government armed organizations use forced labor to mine tin, tungsten, tantalum and gold (hereinafter “Conflict Minerals”), and use proceeds from such minerals as funds for their activities. In addition, organized violence against residents is raised as an international issue of concern.
On August 22, 2012, the Securities Exchange Committee (SEC) adopted the “Final Rule on Disclosure Regulations for Conflict Minerals” as a procedure related to Section 1502 of the Dodd-Frank Wall Street Reform and Consumer Protection Act, which was enacted in July 2010. As a result, a publicly-listed company in the U.S. is required to report the use of Conflict Minerals in its products every year.
To fulfill its social responsibility, the Sumitomo Heavy Industries Group maintains the policy of not procuring Conflict Minerals. The Group will promote considering necessary systems and measures in accordance with this policy. Our business partners are requested to understand the policy of the Group and cooperate with our efforts.

  1. 2Information session for business partners concerning the Company’s CSR and CSR Procurement Guidelines

We provide an explanation about the Company’s CSR and CSR Procurement Guidelines sequentially by taking opportunities such as information sessions held by each business division for business partners.

Support and contribution to communities

The Sumitomo Heavy Industries Group’s works, sales offices and other bases including its group companies are widespread. Each of these bases conducts activities to support and contribute to communities in their respective region. These activities include support for local cleanups and blood donations, execution of a disaster prevention agreement with a municipal government, participation in festivals held by citizens, local athletic meets and other events, acceptance of visitors to our factories, etc.
We think that the Group can make fruitful social contributions not only by providing products that contribute to people’s lives but also by gaining the understanding and support of people in local communities where a factory that manufactures those products is situated.

  1. 1Local cleanup activities

We participate in cleanup activities not only in areas around factories such as Niihama Factory but also areas around the head office, which is located in Osaki.

Niihama cleanup activity
Osaki cleanup activity
  1. 2Education support activities

Sumitomo Heavy Industries, Ltd. co-sponsors “Tobitate! (Leap for Tomorrow) Study Abroad Initiative”, an overseas study promotion campaign led by Japan’s Ministry of Education, Culture, Sports, Science, and Technology, and provides support for developing human resources that will play an active role in the international community in the future.

Sumitomo Heavy Industries Environment Co.,Ltd. participates in a local event held in Minami-Ashigara City and provides environmental education to elementary school students on a continual basis.

Sumitomo(S.H.I.) Construction Machinery Co.,Ltd. holds a “Sumitomo (S.H.I.) Construction Machinery Baseball Clinic for Children” as a part of its social contribution activities. This clinic started in 2004 with the aim of nurturing young people and vitalizing the local community and has already been held nearly 60 times.

Sumitomo Heavy Industries Marine & Engineering Co.,Ltd. continuously provides support to “B&G Tokyo Bay Marine Experience Academy” hosted by the Blue Sea and Green Land Foundation (B&G Foundation). Programs such as a tour to the shipbuilding yard, experience of being onboard a tanker under construction, and experience of designing and welding simulation using a 3D CAD system are available to children from across Japan.

Sumitomo Heavy Industries Gearbox Co., Ltd. continuously invites third-grade children of Kaizuka-shi-nishi Elementary School (situated adjacent to SHI Gearbox) to take a factory tour as a part of their social studies curricula. SHI Gearbox personnel explain to the children about the production site of transmission and reduction gears and the role the gears play in society, thereby providing educational support in a manner that utilizes social networks in the community.