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	FY2020	FY2021	FY2022	FY2023
< Domestic non-consolidated >
Office	electricity	MWh	2,903	3,018	2,632	3,446
Construction sites	electricity	MWh	26,779	19,301	18,810	20,328
	kerosene	kL	197	65	350	194
	diesel	kL	20,328	19,380	20,244	14,285
	fuel oil	kL	183	0	0	317

Construction Materials Input
		FY2020	FY2021	FY2022	FY2023
< Domestic non-consolidated >
Ready-mixed concrete	thousand tonnes	1,026.0	843.0	1,127.0	1,253.0
Rebar	thousand tonnes	98.0	50.0	70.0	88.7
Steel frame	thousand tonnes	7.0	5.0	26.5	45.1
Cement	thousand tonnes	38.0	18.0	27.2	22.6

Main Recycled Materials Input
	unit	FY2020	FY2021	FY2022	FY2023
< Domestic non-consolidated >
Blast furnace ready-mixed concrete	thousand tonnes	225.0	96.0	200.4	104.7
Electric arc furnace rebar	thousand tonnes	98.0	50.0	70.0	88.7
Electric arc furnace steel	thousand tonnes	7.0	5.0	17.0	12.4
Blast furnace cement	thousand tonnes	9.0	13.0	2.4	3.1
Recycled crushed stone	thousand tonnes	90.0	41.0	72.8	59.9
Asphalt mixture	thousand tonnes	22.0	25.0	9.3	10.5
Soil generated from construction	thousand m³	2,963.0	141.0	550.9	162.5

Activities of Each Sector

OUTPUT - Main Emissions

CO₂ Emissions
Scope 1 and Scope 2	unit	FY2020	FY2021	FY2022	FY2023
< Domestic non-consolidated >
CO₂ Emissions	thousand t-CO₂	68.0	60.9	63.9	45.4
Office activities	thousand t-CO₂	1.0	1.5	1.2	1.0
Construction stage	thousand t-CO₂	67.0	59.4	62.7	44.3
Emission Intensity	t-CO₂/100 million yen	21.1	20.1	22.3	15.5

Scope 3	unit	FY2020	FY2021	FY2022	FY2023
CO₂ Emissions	thousand t-CO₂	1,472.6	1,278.9	1,335.5	1,358.6
Category 1	thousand t-CO₂	242.6	166.4	283.3	538.2
Category 11	thousand t-CO₂	1,147.4	1,019.8	954.1	736.4
Other categories	thousand t-CO₂	82.5	92.7	98.1	84.0

Disposal of soil generated from construction
	unit	FY2020	FY2021	FY2022	FY2023
< Domestic non-consolidated >
Disposal of soil generated from construction	thousand m³	300.4	911.0	1085.0	1342.4
Use of recycled resources	thousand m³	289.8	347.0	765.8	1021.6
On-site	thousand m³	252.7	122.0	518.3	814.8
Off-site delivery	thousand m³	37.1	225.0	247.5	206.8
Other Processes	thousand m³	10.6	564.0	319.2	320.8

Disposal of construction waste
	unit	FY2020	FY2021	FY2022	FY2023
< Domestic non-consolidated >
Disposal of construction waste	thousand tonnes	408.0	431.0	551.3	452.4
Intermediate treatment	thousand tonnes	397.0	395.0	520.6	430.7
Final disposal	thousand tonnes	11.0	36.0	30.7	21.7
Disposal Intensity	t-CO₂/100 million yen	126.6	141.6	163.3	134.3

Environmental Accounting

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

	unit	FY2020	FY2021	FY2022	FY2023
< Domestic non-consolidated >
Environmental Conservation Cost	million yen	4,599	4,825	5,389	5,832
A) Cost within our business area	million yen	3,622	3,605	4,392	4,681
(Pollution prevention cost)	million yen	1,546	1,168	1,513	1,366
(Global environmental conservation cost)	million yen	35	86	30	69
(Resource circulation cost)	million yen	2,041	2,351	2,849	3,246
B) Upstream, downstream cost	million yen	305	344	380	295
C) Administrative activity cost	million yen	429	506	409	638
D) R&D cost	million yen	204	337	175	181
E) Social activity cost	million yen	11	7	3	5
F) Environmental remediation cost	million yen	28	26	30	32

Calculation method of environmental accounting；
- The period covered : 1 April 2023 to 31 March 2024
- Boundary: Domestic head office, branch offices, three PC factories, and construction sites. (As for the construction sites, 23 sites for building construction work were selected, which accounted for 29% of net sales of completed construction contracts. For civil engineering work, 43 construction sites were selected which accounted for 42% of net sales of completed construction contracts.)
- Internal personnel expenses: Calculated by multiplying the number of hours required by a uniform unit price calculated from the average annual salary.

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 2020) of CO₂ emissions for Scope 1 + Scope 2 and a 25% reduction (from 2020) of CO₂ emissions for Scope 3 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 , and the figures in fiscal 2021 are calculated based on available energy usage fee payment records. 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.
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, 2021 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, 2021 and 2022 . Emission factors used in the calculation of CO₂ emissions (Scope 1 and Scope 2) in fiscal 2023 are the default values under the Act on Promotion of Global Warming Countermeasures.
Emission factors for domestic electricity in fiscal 2020 and 2021 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 (Ver. 3.4) (March 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

CO₂ Emissions from Construction Sites and Offices
(excluding emission reduction activities at construction sites)
	unit	FY2020 (base year)	FY2021	FY2022	FY2023
< Non-consolidated >
Total Emissions	t-CO₂	70,766	105,705	112,113	63,437
Scope 1 (domestic)	t-CO₂	50,328	45,606	54,844	39,734
Scope 1 (overseas)	t-CO₂	6,251	50,661	45,732	15,595
Scope 2 (domestic)	t-CO₂	12,491	8,041	7,855	5,633
Scope 2 (overseas)	t-CO₂	1,696	1,397	3,682	2,475
Intensity	t-CO₂	22.0	34.7	33.2	18.8
% of base year	%	0.0	49.4	58.4	-10.4

Scope 1 and Scope 2 CO₂ Emissions
	unit	FY2020 (base year)	FY2021	FY2022	FY2023
< Consolidated >
SMC Group	t-CO₂	120,719	157,823	169,077	130,740
Scope 1	t-CO₂	99,667	140,666	147,973	114,925★
Scope 2	t-CO₂	21,052	17,157	21,104	15,815★
SMC (Non-consolidated)	t-CO₂	70,766	105,705	112,113	63,437
Scope 1 (domestic)	t-CO₂	50,328	45,606	54,844	39,734
Scope 1 (overseas)	t-CO₂	6,251	50,661	45,732	15,595
Scope 2 (domestic)	t-CO₂	12,491	8,041	7,855	5,633
Scope 2 (overseas)	t-CO₂	1,696	1,397	3,682	2,475
Consolidated subsidiaries	t-CO₂	49,953	52,118	56,964	67,303
Scope 1 (domestic)	t-CO₂	43,088	40,562	42,311	41,364
Scope 1 (overseas)	t-CO₂	－	3,837	5,086	18,233
Scope 2 (domestic)	t-CO₂	6,865	7,182	8,413	6,406
Scope 2 (overseas)	t-CO₂	－	537	1,154	1,301

* Third-party assurance for consolidated 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)	FY2021	FY2022	FY2023
< Non-consolidated >
Total Emissions	t-CO₂	1,472,596	1,278,914	1,335,506	1,358,625
Category 1　Purchased goods and services	t-CO₂	242,619	166,448	283,290	538,236★
Category 2　Capital goods	t-CO₂	333	44,296	5,545	665
Category 3　Fuel- and energy-related activities	t-CO₂	9,014	8,364	15,542	9,763
Category 4　Upstream transportation and distribution	t-CO₂	1,417	2,420	9,594	12,595
Category 5　Waste generated in operations	t-CO₂	36,722	27,740	44,282	40,148
Category 6　Business travel	t-CO₂	1,225	1,179	2,239	3,454
Category 7　Employee commuting	t-CO₂	247	235	267	616
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	1,019,795	954,105	736,380★
Category 12　End-of-life treatment of sold products	t-CO₂	11,911	8,437	20,642	16,768
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 FY2023 have been independently assured. The values assured by an independent assurer are indicated with ★.
* 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).
* Materials to be calculated for Category 1 are concrete, rebar, PC steel, steel, cement, crushed stone, asphalt, and soil.

Scope 3 Emissions
	unit	FY2020 (base year)	FY2021	FY2022	FY2023
< Consolidated >
Total Emissions	t-CO₂	1,631,788	1,432,233	1,788,541	2,680,310
Category 1　Purchased goods and services	t-CO₂	361,092	259,594	390,962	1,239,530
Category 2　Capital goods	t-CO₂	763	44,984	11,998	9,257
Category 3　Fuel- and energy-related activities	t-CO₂	18,558	19,304	27,407	20,490
Category 4　Upstream transportation and distribution	t-CO₂	18,970	16,942	15,495	21,681
Category 5　Waste generated in operations	t-CO₂	41,244	32,455	50,197	43,554
Category 6　Business travel	t-CO₂	3,163	3,207	4,545	6,520
Category 7　Employee commuting	t-CO₂	593	629	1,012	2,053
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	846	1,585	1,310
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	1,045,835	1,262,858	1,312,103
Category 12　End-of-life treatment of sold products	t-CO₂	11,911	8,437	22,482	23,813
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. 3.4) (March 2024)". 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. 3.4) (March 2024)."
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 chainss (Ver. 3.4) (March 2024). 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. 3.4) (March 2024)."
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. 3.4) (March 2024)."
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. 3.4) (March 2024)."
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. 3.4) (March 2024)."
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. 3.4) (March 2024)."
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. 3.4) (March 2024)."
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. 3.4) (March 2024)". 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. 3.4) (March 2024)."

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 (%)
	FY2020			FY2021			FY2022			FY2023			FY2030
<Domestic non-consolidated >
	Target	Performance	Achievement	Target	Performance	Achievement	Target	Performance	Achievement	Target	Performance	Achievement	Long-Term Goal
Civil Engineering Construction	99.0	99.7	◯	99.1	99.1	◯	99.2	99.3	◯	99.3	99.3	◯	100.0%
Building Construction	98.4	98.9	◯	98.6	98.6	◯	98.9	97.8	✕	99.0	98.7	✕	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	FY2020	FY2021	FY2022	FY2023
< Domestic non-consolidated >
Disposal	thousand tonnes	408.0	431.0	551.3	452.4
Landfill	thousand tonnes	37.0	36.0	30.7	21.7
(%) of final disposal	%	90.9	91.6	94.4	95.2

Disposal of construction waste by item
	unit	FY2020	FY2021	FY2022	FY2023
< Domestic non-consolidated >
Total	thousand tonnes	408.0	431.0	551.3	452.4
Concrete mass	thousand tonnes	138.0	182.0	240.4	222.5
Asphalt and concrete mass	thousand tonnes	34.0	40.0	45.9	36.9
Waste timber	thousand tonnes	13.0	12.0	14.6	13.8
Construction Sludge	thousand tonnes	161.0	100.0	170.5	117.0
Plastic waste	thousand tonnes	2.0	2.0	1.6	5.0
Mixed waste	thousand tonnes	10.0	23.0	17.6	14.6
Others	thousand tonnes	50.0	72.0	60.7	42.6

Green Procurement Items (FY2023)
	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: 28 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	FY2020	FY2021	FY2022	FY2023
< Domestic non-consolidated >
Blast furnace ready-mixed concrete	thousand tonnes	225.0	96.0	200.4	104.7
Electric arc furnace rebar	thousand tonnes	93.0	50.0	70.0	88.7
Electric arc furnace steel	thousand tonnes	68.0	5.0	17.0	12.4
Blast furnace cement	thousand tonnes	9.0	13.0	2.4	3.1
Recycled crushed stone	thousand tonnes	90.0	41.0	72.8	59.9
Asphalt mixture	thousand tonnes	22.0	25.0	9.3	10.5

Water consumption
	unit	FY2020	FY2021	FY2022	FY2023
< Domestic non-consolidated >
Total	thousand m³	334.0	292.0	372.9	451.7
Construction sites	thousand m³	322.0	281.0	359.2	436.4
Offices	thousand m³	12.0	11.0	13.7	15.3

* Water consumption was calculated from water usage charges.

Hazardous Substance Management
	unit	FY2020	FY2021	FY2022	FY2023
< Domestic non-consolidated >
Asbestos-containing waste	t	679.0	46.0	59.1	68.6
Waste asbestos	t	121.0	267.0	214.3	158.1
Mercury usage (fluorescent light)	t	14.0	3.0	37.1	21.6
Waste oil	t	60.0	8.0	18.4	26.5
Hazardous sludge (Pb): lead	t	325.0	126.0	141.6	192.8
Disposal of other hazardous substances	t	102.0	192.0	17.2	201.7

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.

For the protection of rare plants and animals, in FY2023, we conducted activities at eight sites in the civil engineering construction worksites and two in the building construction sites. These activities include protecting breeding sites, preserving movement, and reducing noise and vibration by changing construction methods.　These activities lead to protect rare plants such as Japanese swamp leaf, Rotala pusilla, Chickweed sparrow, Arisaema longilaminum, Chrysosplenium album, Primrose, Tylophora floribunda, Lonicera tschonoskii, Asarum heterotropoides, and Primula jesoana, as well as rare animals such as birds (raptors such as Grey-headed lapwing and sparrowhawk, etc.), loggerhead sea turtles, mammals (such as Ussuri tube-nosed bat), amphibians (Japanese tree frog), fish (Glass eel, gilthead eel, Japanese fluvial sculpin), benthic animals, and insects.

Monitoring the growth condition of rare plants growing wild outside the worksite.

（Photo location: Saku-shi, Nagano, Japan）

5. Certification Test for Environmental Specialists (Eco Test)

We are promoting the certification of Eco Test to raise the environmental awareness and knowledge of our employees. 1,838 employees had been certificated as of April 2023, which is 62% of the total number of employees.