SMOKESCREEN SUMITOMO’S “CARBON NEUTRAL” FAILURES

Mighty Earth alleges a significant gap between Sumitomo Corporation's public commitment to carbon neutrality by 2050 and its actual business practices. The report highlights Sumitomo's role in importing wood pellets from the US and Canada, which it claims destroys old-growth forests and increases CO2 levels. It also criticizes the company's ongoing development of coal-fired power plants in Southeast Asia, particularly in Bangladesh, noting that these projects cause severe local pollution and human rights issues. Financially, the report notes that Sumitomo has suffered substantial losses from coal-related assets, arguing that the company must accelerate its transition to renewable energy to avoid further stranded assets and environmental destruction.

• Sumitomo Corporation's climate goals are contradicted by its operational plans, which allow for the continued operation of coal-fired power plants until the late 2040s and thermal coal mining until 2030.
• The company is a dominant player in the Japanese biomass market, importing wood pellets from the US and Canada that the report claims drive the logging of old-growth and sensitive forests.
• In Canada, Sumitomo's biomass sourcing through Pacific BioEnergy and Pinnacle Renewable Energy is linked to the destruction of primary forests and the habitat of the threatened woodland caribou in British Columbia.
• Sumitomo is developing coal power plants in Southeast Asia, including the Matarbari projects in Bangladesh, using technology that is significantly more polluting than what is permitted in Japan.
• The Matarbari coal project in Bangladesh has resulted in severe local impacts, including the forced acquisition of 5,000 acres of land, loss of livelihoods for shrimp and salt farmers, and unprecedented flooding.
• Sumitomo has faced significant financial losses due to its continued reliance on coal, including a $236 million loss on coal power in Australia and $491 million related to power plant construction delays in FY 2020.

APA

Smith, R. (2021). SMOKESCREEN SUMITOMO’S “CARBON NEUTRAL” FAILURES. Mighty Earth. https://www.mightyearth.org/wp-content/uploads/Mighty-Earth-Sumitomo-Report-6.10.2021web.pdf

Chicago

Smith, Roger. SMOKESCREEN SUMITOMO’S “CARBON NEUTRAL” FAILURES. Mighty Earth, 2021. https://www.mightyearth.org/wp-content/uploads/Mighty-Earth-Sumitomo-Report-6.10.2021web.pdf.

Wikipedia

{{cite report |last1=Smith |first1=Roger |title=SMOKESCREEN SUMITOMO’S “CARBON NEUTRAL” FAILURES |publisher=Mighty Earth |date=June 2021 |url=https://www.mightyearth.org/wp-content/uploads/Mighty-Earth-Sumitomo-Report-6.10.2021web.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{smith2021smokescreen, author = {Smith, Roger}, title = {{SMOKESCREEN SUMITOMO’S “CARBON NEUTRAL” FAILURES}}, institution = {Mighty Earth}, year = {2021}, month = jun, url = {https://www.mightyearth.org/wp-content/uploads/Mighty-Earth-Sumitomo-Report-6.10.2021web.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }