January 22 nd 2024

Sumitomo Corporation

Sumitomo Corporation Group recognizes that all our business activities are based on the respect for human rights, and has established the "Sumitomo corporation Group’s Human Rights Policy”, which adhere to the United Nations Guiding Principles on Business and Human Rights. All our business activities are strictly in line with the principles outlined in this policy.

In Myanmar, Myanma Posts and Telecommunications (hereinafter, “MPT“), a licensed telecommunications service provider, offers telecommunications service, we supports MPT’s service operation through KDDI Summit Global Myanmar Co., Ltd., a joint venture established between KDDI and Sumitomo Corporation contribute the sustainable growth of society and the welfare of people in Myanmar.

Since the declaration of the state of emergency in Myanmar on February 1, 2021, we have diligently implemented a range of initiatives in accordance with the statement disclosed on September 29 of the same year.Especially, our commitment to respecting human rights led us to appoint international, trusted human rights consultant for an assessment on our business to check/review the possibilities of human rights impacts in accordance with the UN Guiding Principles on Business and Human Rights and other international norms and we have executed targeted actions to mitigate and prevent risks. And we reviewed the directions and actions to be taken through dialogues with various stakeholders.

The consultant recommended for us a series of actions such as to “ensure the safety of all employees,” “conduct ongoing human rights due diligence,” and “engage in dialogue with and support trusted stakeholders”, we are continuing our human rights actions in line with these recommendations. In addition, dialogues with stakeholders reaffirmed the critical importance of maintaining and securing the telecommunication network for people of Myanmar in the context of respecting human rights. After careful consideration of the multifaceted impacts of our operations, we had decided to continue our support, recognizing significance of our presence in Myanmar and our responsibility as a company that upholds international norms.

Unfortunately, we acknowledge the persistently challenging situation in Myanmar, characterized by frequent regional conflicts and all businesses in Myanmar have been placed in a difficult situation, we recognize there are many opinions regarding to business. We will continue to pursue ways to respect human rights in accordance with international human rights norms. Doing so will include adherence to the UN Guiding Principles on Business and Human Rights, while taking care to ensure the safety of local employees, their families, and other related parties. In addition, we will consider appropriate actions by monitoring changing situations.

Norwegian Government Pension Fund Global (GPFG) and Norges Bank, which manages the fund, are important stakeholders for us, and we have been in dialogue with the Council on Ethics of GPFG regarding business and human rights. In the statement released on the website of Norges bank in December 2023, Norges Bank explains that they had decided not to exclude us from their investment immediately based on the recommendations from the Council on Ethics, but to keep us under observation for three years considering our past efforts regarding human rights in Myanmar.

Lastly, we take their decision sincerely and will continue our efforts to manage human rights risk in Myanmar as well as consistently endeavor to contribute to Myanmar's development and improve the lifestyles of its people with providing technical and marketing support for the country's communication service, which is an essential element of its people’s lives and economic activities. In addition, we will continue to engage in meaningful dialogues with external stakeholders, including GPFG and Norges Bank, to gain understanding of our policies and initiatives.