01 August 2025
Sumitomo Electric Selected for the First Time as Top Rating in CDP Supplier Engagement Assessment
Sumitomo Electric Industries, Ltd. has been selected for the first time as a "Supplier Engagement Leader," the highest rating in the 2024 CDP Supplier Engagement Assessment (SEA*1), conducted by CDP*2, an international environmental nonprofit organization.
CDP's SEA evaluates how companies collaborate with their suppliers (business partners) to address climate change challenges.
This recognition by CDP reflects the collaborative efforts between our group and our suppliers, resulting in our selection for the first time as a "Supplier Engagement Leader" in the SEA.
Our group has established "Earth-Friendly Procurement Activities" as one of the core elements of our "Basic Procurement Policies*3." As part of our CSR procurement activities, we have introduced systems*4 to support our suppliers' environmental conservation activities, and our efforts to improve the effectiveness of supplier engagement have been recognized.
Based on the Sumitomo Spirit, our group considers addressing global environmental issues as one of the most important management challenges, and established an "Environmental Policy" in 1997. Under this policy, we promote global environmental conservation activities, and we consider engagement with our suppliers, who are one of the five stakeholders (“Goho-Yoshi” or Five-Way Win*5), to be a particularly important element. In collaboration with our suppliers, we will continue to promote further environmental initiatives.
*1 CDP Supplier Engagement Assessment (SEA):
Companies that have responded to the full version of the CDP Climate Change Questionnaire are evaluated across five criteria: "Governance," "Goal Setting," "Measurement and Management of Scope 3* Emissions," "Risk Management Process," and "Supplier Engagement," and are given an overall score.
*Scope 3
The total amount of greenhouse gases indirectly emitted through the value chain in corporate activities.
*2 CDP:
An abbreviation for Carbon Disclosure Project.
Founded in the UK in 2000, CDP is an international environmental nonprofit organization that operates a disclosure system for companies and municipalities to manage their environmental impacts. CDP's disclosure system has become the global standard for environmental reporting in the world economy. In the 2024 reporting year, over 24,800 companies worldwide responded to the CDP Climate Change Questionnaire.
*3 Basic Procurement Policies:
https://sumitomoelectric.com/sustainability/csr/sociality/procurement
*4 systems:
They include the "ECO Factoring System," developed in collaboration with Mitsui Sumitomo Banking Corporation, which provides preferential interest rates to suppliers engaged in environmental activities that meet a certain standard.
*5 “Goho-Yoshi” or Five-Way Win:
Multi-stakeholder capitalism, namely, a management stance aimed at achieving shared prosperity with "employees," "customers," "suppliers," "regional communities," and "shareholders/investors," while striving for sustainable growth and the enhancement of mid- and long-term corporate value.
https://sumitomoelectric.com/id/styles/v25/fivewaywin
・"ECO Factoring System" is a trademark or registered trademark of Mitsui Sumitomo Banking Corporation.
For Your Reference
・Sumitomo Electric Group GX Special Website
https://sei.co.jp/gx/ (in Japanese)