Governance (Effective Governance Framework)
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Governance (Effective Governance Framework)
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Governance (Effective Governance Framework)
- The Sumitomo Rubber Group
Management Approach
The Sumitomo Rubber Group considers the enhancement of corporate governance to be one of its major management objectives. Accordingly, we are pursuing a variety of initiatives to strengthen the relationship of trust between us and society and improve our operations in terms of fairness and transparency.
In addition, we maintain robust communications with stakeholders, to ensure that we stay keenly aware of the responsibilities we are called on to fulfill and other stakeholder expectations. The input gleaned from these communications is reflected in our business activities as we aim to remain a company deserving of trust of all stakeholders.
1. Strengthening of corporate governance and compliance
2. Improvement of stakeholder engagement
3. Supply chain management
Targets and Results Relative to Sustainability Initiatives
- The Sumitomo Rubber Group
In line with the Sumitomo Rubber Group’s Long-Term Sustainability Policy: “Driving Our Future Challenge 2050,” we verify results achieved thus far against targets specified under this policy and then formulate targets for the upcoming fiscal year.
Here, we present targets and results for each item.
| Targets under the Long-Term Sustainability Policy | PLAN Fiscal 2022 Target |
DO Fiscal 2022Activity Results |
CHECK Self-Assessment |
ACTION Fiscal 2023 Target |
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|---|---|---|---|---|---|
| Enhancing Corporate Governance | |||||
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Update the skill matrix based on the Midterm Plan while promoting discussions to identify Director and Audit & Supervisory Board Member candidates from the perspective of securing diversity | Discussed our definitions of a well-balanced Director composition vis-à-vis the skill matrix and incorporated diversity requirements into the Policy of Election and Dismissal Standards for Directors and Audit & Supervisory Board Members to enhance the Board of Directors’ diversity | 100％ | Continue discussions regarding the selection of candidates for Directors and Audit & Supervisory Board Members from the perspective of securing diversity, with the aim of establishing a management team capable of improving corporate value |
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Implement various measures to enhance the Board of Directors’ effectiveness based on results of questionnaires and confirm the outcomes of such measures | Implemented such measures as reviewing standards for agenda items requiring a Board of Directors resolution while conducting questionnaires regarding the Board’s effectiveness. Confirmed that issues specified in the course of the third-party assessment conducted in 2021 were addressed and improved | 100％ | Continue implementing questionnaires regarding the Board of Directors’ effectiveness and push ahead with efforts to address issues and enhance its effectiveness so that the Board can gain greater governance capabilities |
| Thoroughgoing Compliance | |||||
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Discuss the content of tax-related information to be disclosed Execute the global tax strategy |
Assessed the status of taxes paid in each country Discussed the profitability of overseas Group companies as part of the global tax strategy |
100％ | Continue collecting information regarding taxation systems in each country Discuss the global tax strategy (assessment of the profitability of overseas Group companies, tax planning, etc.) |
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Phase 2 “Understanding” ⇒ Phase 3 “Empathy” Nurture a sense of ownership regarding Our Philosophy |
Hosted “Our Philosophy Entrenchment Boost Seminars” in the first quarter Held a total of 20 rounds of seminars in the workshop format, with approximately 3,000 employees taking part in these seminars Encouraged attendees to think about Our Philosophy from perspectives of their own duties and operations |
100％ | Phase 3 “Empathy” ⇒ Phase 4 “Practice”: Practice various initiatives to embody Our Philosophy |
| Degree of Our Philosophy’s entrenchment 70% | Promote activities to facilitate the entrenchment among factory technicians | ||||
| Supply Chain Management | |||||
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— | Procured 82% of raw materials (purchase value basis) from suppliers who earned standard scores (45 points or more) | 100％ | — |
| Supply Chain Management for the Environment | |||||
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Participate in the Global Platform for Sustainable Natural Rubber (GPSNR) and establish a framework and structure that enables us to remain attuned with industrial trends | Attended an ordinary meeting of GPSNR members, took part in a working group and otherwise contributed to GPSNR | 100％ | Continue acting as a member of GPSNR and maintain a structure that enables us to remain attuned with trends in the industry and among other companies |
| Submitted a report in conformity with reporting requirements defined by GPSNR | |||||
| Achieve KPI targets defined by GPSNR, in addition to identifying activity items to secure conformity with the EU Deforestation Regulation (EUDR) and taking action accordingly | |||||
| Contributed funds to support GPSNR’s Capacity Building Project | |||||