Data of Environmental Management Activities

1. Business Activities, Material Balance, and Environmental Accounting

We aim to continuously reduce our environmental impact and promote environmental management by measuring resources and energy input in our business activities and understanding our environmental impact.

INPUT - Main Resources and Energy Inputs

Energy Consumption
		unit	FY2022	FY2023	FY2024
< Domestic non-consolidated >
Office	electricity	MWh	2,632	3,446	3,373
Construction sites	electricity	MWh	18,810	20,328	21,483
	kerosene	kL	350	194	276
	diesel	kL	20,244	14,285	11,663
	fuel oil	kL	0	317	0

Construction Materials Input
	unit	FY2022	FY2023	FY2024
< Domestic non-consolidated >
Ready-mixed concrete	thousand tonnes	1,127.0	1,253.0	974.1
Rebar	thousand tonnes	70.0	88.7	60.4
Steel frame	thousand tonnes	26.5	45.1	33.3
Cement	thousand tonnes	27.2	22.6	23.5

Main Recycled Materials Input
	unit	FY2022	FY2023	FY2024
< Domestic non-consolidated >
Blast furnace ready-mixed concrete	thousand tonnes	200.4	104.7	159.1
Electric arc furnace rebar	thousand tonnes	70.0	88.7	60.4
Electric arc furnace steel	thousand tonnes	17.0	12.4	8.7
Blast furnace cement	thousand tonnes	2.4	3.1	0.0
Recycled crushed stone	thousand tonnes	72.8	59.9	83.1
Asphalt mixture	thousand tonnes	9.3	10.5	17.5
Soil generated from construction	thousand m³	550.9	162.5	270.7

Activities of Each Sector

OUTPUT - Main Emissions

CO₂ Emissions
Scope 1 and Scope 2	unit	FY2022	FY2023	FY2024
< Domestic non-consolidated >
CO₂ Emissions	thousand t-CO₂	62.6	45.3	35.2
Office activities	thousand t-CO₂	2.0	1.0	1.7
Construction stage	thousand t-CO₂	60.6	44.3	33.5
Emission Intensity	t-CO₂/100 million yen	21.9	15.5	12.6

Scope 3	unit	FY2022	FY2023	FY2024
CO₂ Emissions	thousand t-CO₂	1,335.5	1,358.6	1,116.0
Category 1	thousand t-CO₂	283.3	538.2	345.9
Category 11	thousand t-CO₂	954.1	736.4	727.0
Other categories	thousand t-CO₂	98.1	84.0	43.1

Disposal of soil generated from construction
	unit	FY2022	FY2023	FY2024
< Domestic non-consolidated >
Disposal of soil generated from construction	thousand m³	1085.0	1342.4	1,184.3
Use of recycled resources	thousand m³	765.8	1021.6	794.9
On-site	thousand m³	518.3	814.8	561.2
Off-site delivery	thousand m³	247.5	206.8	233.7
Other Processes	thousand m³	319.2	320.8	389.4

Disposal of construction waste
	unit	FY2022	FY2023	FY2024
< Domestic non-consolidated >
Disposal of construction waste	thousand tonnes	551.3	452.4	222.9
Intermediate treatment	thousand tonnes	520.6	430.7	209.5
Final disposal	thousand tonnes	30.7	21.7	13.4
Disposal Intensity	t/100 million yen	192.4	154.3	79.5

Environmental Accounting

We calculate environmental conservation cost in order to clarify the costs and benefits for environmental conservation in our business activities.

	unit	FY2022	FY2023	FY2024
< Domestic non-consolidated >
Environmental Conservation Cost	million yen	5,389	5,832	5,335
A) Cost within our business area	million yen	4,392	4,681	4,403
(Pollution prevention cost)	million yen	1,513	1,366	1,607
(Global environmental conservation cost)	million yen	30	69	72
(Resource circulation cost)	million yen	2,849	3,246	2,724
B) Upstream, downstream cost	million yen	380	295	229
C) Administrative activity cost	million yen	409	638	466
D) R&D cost	million yen	175	181	190
E) Social activity cost	million yen	3	5	17
F) Environmental remediation cost	million yen	30	32	30

Calculation method of environmental accounting；
- The period covered : 1 April 2024 to 31 March 2025
- Boundary: Domestic head office, branch offices, three PC factories, and building construction sites and civil engineering work sites.

2. Contribution for Decarbonized Society

In November 2021, we set forth the "Roadmap to Carbon Neutrality by 2050" and are working to achieve a 50% reduction (from fiscal 2020) of CO₂ emissions for Scope 1 + Scope 2 by 2030.

* The boundary of calculation on a non-consolidated basis includes domestic construction sites, offices and factories, and overseas construction sites and offices of Sumitomo Mitsui Construction Co., Ltd.
Overseas CO₂ emissions in fiscal 2020 are calculated based on the ratio of domestic and overseas net sales of completed construction contracts. The figures in fiscal 2022 are based on a 2-month survey of the types of heavy construction equipment, the number of units in operation, and the operating hours, and estimated using the percentage of net sales of completed construction contracts. The boundary of calculation on a consolidated basis includes the construction sites, offices, and factories of domestic affiliates, and the construction sites and offices of overseas subsidiaries. In fiscal 2023, the figures are estimated on the ratio of net sales of completed construction contracts based on a 5-month (Sumitomo Mitsui Construction Co., Ltd.) and 2-month (overseas subsidiaries) survey of fuel used in heavy construction equipment and electricity used for construction equipment. In fiscal 2024, the amount of fuel used for construction heavy machinery and the amount of electricity used for construction machinery were calculated based on a 12-month survey.
The boundary of calculation on a consolidated basis includes construction sites, offices and factories of domestic consolidated subsidiaries and construction sites and offices of overseas subsidiaries.
* Emission factors used in the calculation of CO₂ emissions (Scope 1 and Scope 2) in fiscal 2020 and 2022 are those provided by Keidanren (Japan Business Federation) for kerosene, diesel oil, and heavy oil A, and the default values under the Act on Promotion of Global Warming Countermeasures for the others in fiscal 2020 and 2022. Emission factors used in the calculation of CO₂ emissions (Scope 1 and Scope 2) in fiscal 2023 and 2024 are the default values under the Act on Promotion of Global Warming Countermeasures. The emission factors for each fuel overseas in fiscal 2024 are the values of IPCC (outside the U.S.) and EPA (U.S.).
Emission factors for domestic electricity in fiscal 2020 are provided by Keidanren (Japan Business Federation), and those from fiscal 2022 are based on each contract. Emission factors for overseas electricity are the country-specific emission factors described in "Emissions intensity database for calculation of greenhouse gas emissions of organizations through supply chains" (from fiscal 2020 to 2023), "IEA Emissions Factors 2024" (in fiscal 2024), and the default values under the Act on Promotion of Global Warming Countermeasures for the others.
* The amount of diesel oil used in heavy construction equipment at construction sites is calculated based on the total number of heavy construction equipment in operation for each type of equipment, in accordance with the "Environmental Information Disclosure Guidelines" of the Japan Federation of Construction Contractors (Nikkenren), using JFCC's survey sheet.
* Scope 1, 2, and Scope 3 Category 1 excluded overseas construction sites with less than 100 million yen and construction periods of less than 6 months. Scope 3 Category 11 included domestic construction sites for which energy-saving calculations were performed and excluded overseas construction sites completed in the reporting year with less than 100 million yen and construction periods of less than 6 months.

CO₂ Emissions from Construction Sites and Offices
	unit	FY2020	FY2022	FY2023	FY2024
< Non-consolidated >
Total Emissions	t-CO₂	70,766	112,113	63,437	45,289
Scope 1 (domestic)	t-CO₂	50,328	54,844	39,734	32,017
Scope 1 (overseas)	t-CO₂	6,251	45,732	15,595	6,291
Scope 2 (domestic)	t-CO₂	12,491	7,855	5,633	3,269
Scope 2 (overseas)	t-CO₂	1,696	3,682	2,475	3,712
Intensity	t-CO₂/100million yen	22.0	33.2	18.8	14.2
% of base year	%	0.0	58.4	-10.4	-36.0%

Scope 1 and Scope 2 CO₂ Emissions
	unit	FY2020	FY2022	FY2023	FY2024
< Consolidated >
SMC Group	t-CO₂	120,719	169,077	130,740	105,290
Scope 1	t-CO₂	99,667	147,973	114,925	93,491★
Scope 2	t-CO₂	21,052	21,104	15,815	11,799★
SMC (Non-consolidated)	t-CO₂	70,766	112,113	63,437	45,289
Scope 1 (domestic)	t-CO₂	50,328	54,844	39,734	32,017
Scope 1 (overseas)	t-CO₂	6,251	45,732	15,595	6,291
Scope 2 (domestic)	t-CO₂	12,491	7,855	5,633	3,269
Scope 2 (overseas)	t-CO₂	1,696	3,682	2,475	3,712
Consolidated subsidiaries	t-CO₂	49,953	56,964	67,303	60,001
Scope 1 (domestic)	t-CO₂	43,088	42,311	41,364	37,337
Scope 1 (overseas)	t-CO₂	－	5,086	18,233	17,846
Scope 2 (domestic)	t-CO₂	6,865	8,413	6,406	2,940
Scope 2 (overseas)	t-CO₂	－	1,154	1,301	1,878

* Third-party assurance for consolidated Scope 1 and Scope 2 CO₂ Emissions has been received since FY2023.
Values assured by the third -party are indicated with an asterisk (★).

Scope 3 CO₂ Emissions
	unit	FY2020 (base year)	FY2022	FY2023	FY2024
< Non-consolidated >
Total Emissions	t-CO₂	1,472,596	1,335,506	1,358,625	1,468,867
Category 1　Purchased goods and services	t-CO₂	242,619	283,290	538,236	382,893★
Category 2　Capital goods	t-CO₂	333	5,545	665	892
Category 3　Fuel- and energy-related activities	t-CO₂	9,014	15,542	9,763	6,337
Category 4　Upstream transportation and distribution	t-CO₂	1,417	9,594	12,595	7,307
Category 5　Waste generated in operations	t-CO₂	36,722	44,282	40,148	20,210
Category 6　Business travel	t-CO₂	1,225	2,239	3,454	3,101
Category 7　Employee commuting	t-CO₂	247	267	616	546
Category 8　Upstream leased assets	t-CO₂	Not applicable	Not applicable	Not applicable	Not applicable
Category 9　Downstream transportation and distribution	t-CO₂	Not applicable	Not applicable	Not applicable	Not applicable
Category 10　Processing of sold products	t-CO₂	Not applicable	Not applicable	Not applicable	Not applicable
Category 11　Use of sold products	t-CO₂	1,147,446	954,105	736,380	1,037,264★
Category 12　End-of-life treatment of sold products	t-CO₂	11,911	20,642	16,768	10,317
Category 13　Downstream leased assets	t-CO₂	Not applicable	Not applicable	Not applicable	Not applicable
Category 14　Franchises	t-CO₂	Not applicable	Not applicable	Not applicable	Not applicable
Category 15　Investments	t-CO₂	21,662	0	0	0

*Non-consolidated Scope 3 Category 1 and Category 11 CO₂ emissions for FY2024 have been independently assured. The values assured by an independent assurer are indicated with ★.
*Materials to be calculated for Category 1 are concrete, rebar, PC steel, steel, cement, crushed stone, asphalt, and soil.
*Since FY2023, CO₂ emissions from fuel used for transporting waste and construction waste have been changed from Scope 1 to Scope 3 Category 4 (2,365t-CO₂) and Scope 3 Category 5 (1,050t-CO₂).

Scope 3 Emissions
	unit	FY2020	FY2022	FY2023	FY2024
< Consolidated >
Total Emissions	t-CO₂	1,631,788	1,788,777	2,680,310	3,685,639
Category 1　Purchased goods and services	t-CO₂	361,092	390,962	1,239,530	663,859
Category 2　Capital goods	t-CO₂	763	11,998	9,257	4,941
Category 3　Fuel- and energy-related activities	t-CO₂	18,558	27,406	20,490	15,834
Category 4　Upstream transportation and distribution	t-CO₂	18,970	15,495	21,681	277,642
Category 5　Waste generated in operations	t-CO₂	41,244	50,194	43,554	24,557
Category 6　Business travel	t-CO₂	3,163	4,540	6,520	5,737
Category 7　Employee commuting	t-CO₂	593	1,257	2,053	1,489
Category 8　Upstream leased assets	t-CO₂	Not applicable	Not applicable	Not applicable	Not applicable
Category 9　Downstream transportation and distribution	t-CO₂	1,242	1,585	1,310	1,064
Category 10　Processing of sold products	t-CO₂	Not applicable	Not applicable	Not applicable	Not applicable
Category 11　Use of sold products	t-CO₂	1,174,252	1,262,858	1,312,103	2,672,054
Category 12　End-of-life treatment of sold products	t-CO₂	11,911	22,482	23,813	18,462
Category 13　Downstream leased assets	t-CO₂	Not applicable	Not applicable	Not applicable	Not applicable
Category 14　Franchises	t-CO₂	Not applicable	Not applicable	Not applicable	Not applicable
Category 15　Investments	t-CO₂	0	0	0	0

* Category 15 (Consolidated) for the base year is 0 because it is included in Scope 1 and Scope 2 of the consolidated subsidiaries.

Calculation Method of Scope 3 Emissions by Category
category	Caculation method
1	Calculated by multiplying the quantity of each material procured in the reporting year by the CO₂ emission intensity of each material. CO₂ emission intensity for concrete, rebar, PC steel, steel, cement, and crushed stone is based on the Ministry of the Environment "Emission intensity database for calculation of greenhouse gas emissions by organizations through supply chains (Ver. 3.5) (March 2025)". CO₂ emission intensity for asphalt and soil is based on the CO₂ emission intensity of IDEA(v2.3, December 27, 2019).
2	Calculated by multiplying the change in property, plant and equipment (Buildings, structures, machinery and equipment, vehicle carriers, tools, appliances and fixtures) from the previous year by the CO₂ emission intensity of capital goods. CO₂ emission intensity is based on "Emissions intensity database for calculation of greenhouse gas emissions of organizations through supply chains (Ver. 3.5) (March 2025)."
3	Calculated by multiplying electricity consumption in the reporting year (excluding electricity from renewable sources) by the CO₂ emission intensity of electricity during fuel procurement. CO₂ emission intensity is based on "Emissions intensity database for calculation of greenhouse gas emissions of organizations through supply chains (Ver. 3.5) (March 2025). For diesel oil, kerosene, A-type heavy oil, gasoline, LNG, LPG, and GTL, CO₂ emission intensity is based on IDEA(v2.3, December 27, 2019).
4	Calculated using the Ton-Kilometer method or the fuel consumption method, based on the weight of materials procured in the reporting year and the average distance transported. CO₂ emission intensity are based on "Emissions intensity database for calculation of greenhouse gas emissions of organizations through supply chains (Ver. 3.5) (March 2025)."
5	Calculated by multiplying the weight of construction waste disposal in the reporting year by the CO₂ emission intensity (including transportation) for each type of waste. CO₂ emission intensity is based on the "Emissions intensity database for calculation of greenhouse gas emissions of organizations through supply chains (Ver. 3.5) (March 2025)."
6	Calculated by multiplying the amount by means of transportation used for business trips (Railways, aircraft, buses and taxis) by the CO₂ emission intensity by means of transportation. CO₂ emission intensity is based on "Emissions intensity database for calculation of greenhouse gas emissions of organizations through supply chains (Ver. 3.5) (March 2025)."
7	Calculated by multiplying the amount of commuting expenses by means of transportation (Railways, buses and private cars) by the CO₂ emission intensity by means of transportation. CO₂ emission intensity is based on "Emissions intensity database for calculation of greenhouse gas emissions of organizations through supply chains (Ver. 3.5) (March 2025)."
9	Calculated using the Ton-Kilometer method or the fuel consumption method, based on the weight of materials sold in the reporting year and the average distance transported. CO₂ emission intensity are based on "Emissions intensity database for calculation of greenhouse gas emissions of organizations through supply chains (Ver. 3.5) (March 2025)."
11	For domestic buildings completed in the reporting year, annual CO₂ emissions are calculated based on BEI values, standard primary energy consumption, and primary energy composition ratio in the energy conservation statement, and then multiplied by the duration of use of the building. For overseas buildings completed in the reporting year, annual CO₂ emissions are calculated by multiplying the total floor area by the emission intensity per unit area for each building use, and then multiplied by the duration of use of the building. CO₂ emission intensity per unit area for each use of the building is based on "Emissions intensity database for calculation of greenhouse gas emissions of organizations through supply chains (Ver. 3.5) (March 2025)."
12	The amount of CO₂ emitted when disposing of materials for projects completed in the reporting year was calculated from the amount of CO₂ emitted when dismantling the projects. The amount of CO₂ emitted when disposing of materials was calculated by dividing the quantity of materials such as concrete, reinforcing steel, PC steel, steel, cement, crushed stone, and asphalt by the ratio of sales of projects completed in the reporting year to sales in the reporting year, and multiplying the ratio by the CO₂ emission intensity. The CO₂ emission intensity was based on the "Emissions intensity database for calculation of greenhouse gas emissions of organizations through supply chains (Ver. 3.5) (March 2025)". The amount of CO₂ emitted when dismantling projects completed in the reporting year was estimated from the total floor area of projects completed in the reporting year by calculating the amount of CO₂ emitted per unit area based on the results of demolition projects of Sumitomo Mitsui Construction Co., Ltd.
15	Calculated by multiplying the amount of investment made in the reporting year and the CO₂ emission intensity of the investment. CO₂ emission intensity of the investment is based on "Emissions intensity database for calculation of greenhouse gas emissions of organizations through supply chains (Ver. 3.5) (March 2025)."

*GHG emissions quantification is subject to uncertainty when measuring activity data, determining emission factors, and considering scientific uncertainty inherent in the Global Warming Potentials.

3. Contribution to Recycling-Oriented Society

To achieve zero emissions at our construction sites, we have set a KPI of 100% recycling_(*1) of construction waste by FY2030. To achieve this target, we are implementing thorough waste separation and outsourcing proper disposal.

We also aim to create a recycling-oriented society that enables sustainable development by prioritizing the procurement of materials, equipment and office supplies with less environmental impact (green procurement) and adopting construction methods and technologies with less environmental impact.

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Construction Waste Recycled (%)
	FY2022			FY2023			FY2024			FY2030
<Domestic non-consolidated >
	Target	Performance	Achievement	Target	Performance	Achievement	Target	Performance	Achievement	Long-Term Goal
Civil Engineering Construction	99.2	99.3	◯	99.3	99.3	◯	99.4	99.1	✕	100.0
Building Construction	98.9	97.8	✕	99.0	98.7	✕	99.2	97.1	✕	100.0

(*1)The recycling rate excludes hazardous wastes and other wastes that cannot be treated with intermediate processing.

Disposal of construction waste and landfill (Including hazardous wastes and other wastes that cannot be processed with intermediate treatments)
	unit	FY2022	FY2023	FY2024
< Domestic non-consolidated >
Disposal	thousand tonnes	551.3	452.4	222.9
Landfill	thousand tonnes	30.7	21.7	13.4
(%) of final disposal	%	5.6	4.8	6.0

Disposal of construction waste by item
	unit	FY2022	FY2023	FY2024
< Domestic non-consolidated >
Total	thousand tonnes	551.3	452.4	222.9
Concrete mass	thousand tonnes	240.4	222.5	104.9
Asphalt and concrete mass	thousand tonnes	45.9	36.9	26.8
Waste timber	thousand tonnes	14.6	13.8	7.7
Construction Sludge	thousand tonnes	170.5	117.0	36.0
Plastic waste	thousand tonnes	1.6	5.0	5.6
Mixed waste	thousand tonnes	17.6	14.6	11.5
Others	thousand tonnes	60.7	42.6	30.4

Green Procurement Items (FY2024)
	Priority items and remarks
< Domestic non-consolidated >
Civil engineering construction division Construction sector/Design sector	Number of priority items: 40 items
Building construction division Construction sector	Number of priority items: 43 items
Design sector	Number of priority items: 21 items
Office operation sector (office supplies)	Office supplies compliant with the Act on Promoting Green Procurement and Eco Mark products
Office operation sector (OA equipment)	Copiers, computers, printers, facsimiles, displays

Use of Green Procurement Products (Main materials)
	unit	FY2022	FY2023	FY2024
< Domestic non-consolidated >
Blast furnace ready-mixed concrete	thousand tonnes	200.4	104.7	159.1
Electric arc furnace rebar	thousand tonnes	70.0	88.7	60.5
Electric arc furnace steel	thousand tonnes	17.0	12.4	8.7
Blast furnace cement	thousand tonnes	2.4	3.1	0.0
Recycled crushed stone	thousand tonnes	72.8	59.9	83.1
Asphalt mixture	thousand tonnes	9.3	10.5	17.5

Water consumption
	unit	FY2022	FY2023	FY2024
< Domestic non-consolidated >
Total	thousand m³	372.9	451.7	206.5
Construction sites	thousand m³	359.2	436.4	191.9
Offices	thousand m³	13.7	15.3	14.6

* Water consumption was calculated from water usage charges.

Hazardous Substance Management
	unit	FY2022	FY2023	FY2024
< Domestic non-consolidated >
Asbestos-containing waste	t	59.1	68.6	1,954.9
Waste asbestos	t	214.3	158.1	42.1
Mercury usage (fluorescent light)	t	37.1	21.6	27.0
Waste oil	t	18.4	26.5	77.6
Hazardous sludge (Pb): lead	t	141.6	192.8	372.3
Disposal of other hazardous substances	t	17.2	201.7	319.3

4. Contribution to a Society in Harmony with Nature

We are implementing activities to protect rare plants and animals and to preserve biodiversity at our construction worksites. In FY2024, we conducted protecting activities at seven sites in the civil engineering construction worksites and two in the construction sites.