To reduce any adverse impact and promote environmental improvement, the Sumitomo Corporation Group sets annual environmental objectives and targets on a calendar-year basis.

At Sumitomo Corporation, the Eco Leader of each Business Unit identifies the environmental aspects of each department and evaluates the seriousness of these aspects on the environment every October and November, before setting each year's objectives and targets. Based on the results, EMS Promoters specify significant environmental aspects for each Business Unit and the Environment & CSR Department reviews these aspects for the entire company. Significant environmental aspects for the entire company identified in this review are discussed at the Global Environment Committee meeting held every December, and after reviewing the achievement level for the current year, new environmental objectives and targets for the following year are discussed and resolved.

1. Achievement of Environmental Objectives and Targets for 2010

Management area	Objective	Target	Achievement level (January to December 2010)
Environmental business	Improve the environment through business operations and expand environmental business.	1. Promote projects to reduce greenhouse gases.	- Obtained UN registration for eight projects, and achieved the target. - Continued to organize and develop new projects.
		2. Expand business utilizing renewable energy sources.	- Promoted geothermal power projects in Indonesia, etc., and expanded wind power generation business in the U.S. - Promoted and conducted, in Spain and France respectively, solar power generation business and sale of systems and materials for solar power plants.
		3. Promote business operations that help create a recycling-oriented society.	- Promoted household appliances recycling business in China. - Continued PET bottles recycling business in Japan.
Assessment of environmental impact	Reduce environmental impact of business operations.	1. Carry out environmental impact assessment and soil pollution surveys.	- Carried out environmental assessment before the start of construction for all locations. Completed a historical survey for 83 out of 107 locations required for the land held by Sumitomo Corporation.
		2. Monitor and reduce electricity and gas consumption in all offices in Japan.	- Achieved the fiscal 2010 target (average of five years from fiscal 2008 to 2012) for reducing electricity consumption at 12.48 MWh (annual 1% reduction compared with the results for fiscal 2002).
Hazardous substance management	1. Prevent accidental spills or leakages of hazardous substances during transport or storage.	1. Ensure safe transportation and storage of hazardous substances in corporation with consigned companies.	- Ensured proper management of ledgers on the transportation and storage of poisonous/hazardous materials and high-pressure gas. Confirmed issuance and receipt of MSDSs.
	2. Comply with chemical substance regulations.	2. Increase the level of chemical substance control. More actively encourage suppliers and consignees to participate.	- Conducted monitoring in accordance with applicable laws, including the Chemical Substances Control Act, PRTR Act and Poisonous and Deleterious Substances Control Act.
Logistics management	Promote energy conservation in logistics.	1. Establish and implement a specific energy conservation plan for transportation as a cargo owner.	- Worked to improve energy consumption efficiency, which is required by the Act on the Rational Use of Energy, in our capacity as a "specified consigner." We fell in this category because our total domestic cargo transportation in fiscal 2009 amounted to 375 million ton-kilometers for 2.018 million tons of products. - Our energy consumption during fiscal 2009 was 2.51 kl/thousand tons (crude oil equivalent), recording a 4% increase from the previous year due to one special factor.
		2. Encourage domestic carriers to achieve efficient transportation and evaluate their performance.	- Improved energy consumption efficiency in some areas by encouraging carriers to use larger trucks and ships and increase load efficiency.
Legal compliance	Proper disposal of waste in accordance with the Waste Disposal and Public Cleaning Act	1. Improve employee training on the Waste Disposal and Public Cleaning Act.	- Held joint waste management seminars with Sumisho Global Logistics Co., Ltd. in Tokyo, Osaka, Nagoya and Fukuoka in January and February (attended by 300 participants). - Held seminars on waste disposal contracts within compliance seminars for the Mineral Resources, Energy, Chemical & Electronics Business Unit and Chubu Regional Business Unit in August (140 participants). - Held a waste management seminar inviting an external expert in November (150 participants). Also held a training session for conducting site inspection of intermediate treatment operators (30 participants).
		2. Improve management systems within group companies often disposing of waste materials. Carry out stricter site inspections, and share information with other group companies.	- Improved waste management system by conducting ISO activities to ensure appropriate management. - Conducted on-site inspection of waste disposal companies.
Environmental education	Raise employees' environmental awareness	1. Raise employees' environmental awareness through seminars on environmental conservation and other programs.	- Held an in-house seminar inviting Junko Edahiro, an environmental journalist. - Held a lecture meeting on the food recycling initiative of Summit Inc.
		2. Disseminate related information by the ISO Office (Environment & CSR Department).	- Disseminated information related to Convention on Biological Diversity—COP10, etc.

2. For 2011, the following items are added to the existing targets.

1. The current target of "promoting projects to reduce greenhouse gases," as defined under the objective category of "expanding environmental business," will be broadened to include "projects to enhance energy conservation," as a key area of that business.
2. The current "assessment of environmental impact" is renamed "management of environmental impact" under the management area. In relation to this, "amount of discharged matter" will be added to "the electricity and gas consumption" to be "monitored and reduced in all offices in Japan," aiming to contribute to creating a recycling-oriented society. Also, in order to help reduce environmental risks, "assessing environmental impact caused by business operations" will be added under the same target category.