Solar Power Generation Business at Thang Long Industrial Park II in Vietnam

December 02, 2020

Dec. 01, 2020 Sumitomo Corporation

Sumitomo Corporation (Head Office: Chiyoda-ku, Tokyo; Representative Director, President and Chief Executive Officer: Masayuki Hyodo) is launching a solar power generation business (hereinafter, “the Business”) at its Thang Long Industrial Park II (Hung Yen) (hereinafter, “TLIP II”) in Vietnam to supply green electricity1 to its tenant companies.

Given the increasing focus on ESG on the back of global warming issues, demand for green electricity has risen around the world in recent years especially in the manufacturing sector, which consumes large quantities of electricity. To respond to society’s call for green energy, Sumitomo Corporation will start generating solar power of around one megawatt at TLIP II, which it will supply to its tenants on a stable basis. The Company will supply green electricity from solar power without using government subsidies, and aims to expand the Business to its industrial parks in other countries, as well as beyond industrial parks, eventually generating several hundred megawatts of solar power in total.

Sumitomo Corporation strives to not only reduce and remove the CO2 emitted by business activities across the Sumitomo Corporation Group, but also contribute toward achieving a carbon-neutral society by implementing initiatives with its business partners. Sumitomo Corporation runs a group of industrial parks in Vietnam—TLIP II, Thang Long Industrial Park in Hanoi, and Thang Long Industrial Park III in Vinh Phuc—which when combined is among the largest of its kind operated by a Japanese firm. The Business is part of the Company’s efforts to contribute to sustainability.

Sumitomo Corporation has a wealth of expertise acquired in the course of developing, marketing and operating special economic zones and industrial parks in different countries in Asia. The Company has also been engaged in offshore and onshore wind power and solar power generation in Japan and overseas, expanding its supply of green power. By capitalizing on experience accumulated through the Business and scaling up its renewable energy business across Asia in the future, Sumitomo Corporation endeavors to contribute toward reducing its global environmental impact.

1.Green electricity: Electricity generated by using renewable energy such as solar, wind, hydraulic and geothermal power and biomass.

Sumitomo Corporation’s Material Issues

Sumitomo Corporation Group positions “Six Material Issues to Achieve Sustainable Growth with Society” as an important factor in developing business strategies and in the decision-making process for individual businesses. Going forward, we will pursue sustainable growth by resolving these issues through our business activities. This project especially contributes to the following material Issues.

Achieving Harmony with the Global Environment To realize recycling-oriented society and mitigate climate change, we are working to establish frameworks for the efficient use of resources and stable supply of renewable energy. In doing so, we will achieve growth in harmony with the global environment.

Contributing to the Development of Local Communities and Industries We steadily procure and provide goods and services to meet the needs of people in various countries and regions and contribute to developing industrial platforms. Through these means, we will create a virtuous cycle in which we can grow and develop together with local communities.

Establishing a Foundation for Comfortable and Enriching Lifestyles We strive to realize more convenient and comfortable lifestyles by providing goods and services for daily use while also responding to needs for high-quality lifestyles in order to support the physical and mental health of people around the world.

Providing Diverse “Accessibility” We provide diverse accessibility to open up the possibility of creating new value. To this end, we will improve mobility for safe and efficient flow of people and goods, and expand the network connecting information and finance.

Developing Human Resources and Promoting Diversity In order to create new value and innovation by allowing our diverse personnel to fully exercise their abilities in a variety of fields, we will promote the development and empowerment of human resources, which represent our most important management resources.

Enhancing Governance We will enhance our ability to draft and implement strategies for achieving sustainable growth and to provide appropriate supervision of these strategies, all while maintaining transparency. In this manner, we will improve management efficiency and maintain sound management.