With many years of practical experience in silviculture, Sumitomo Forestry Group has an appreciation of the wonderful renewable resource that forests represent and the benefits that nature provides. Environmental protection is imperative in the 21st century. As a corporate group with a close affinity with nature, we are aware of the potential impact of our activities on the environment, and we contribute to society through the vigorous pursuit of business operations in harmony with conservation principles.

As a positive contribution to the creation of a sustainable society that achieves a balance between the environment and economy and gives due consideration to such issues as biodiversity and the prevention of global warming, the Sumitomo Forestry Group shall ensure conformance of its business operations to the following policies.

1. Develop a business domain centered on trees and wood
   Cultivate forests as a way to preserve and enhance natural environments and forest functionality while seeking to actively utilize those timber resources.
2. Develop and sell environmentally-friendly products
   Pursue the development, design and sale of products and technologies that are environmentally superior in terms of the entire product lifecycle.
3. Minimize environmental impact
   Make efforts to prevent environmental pollution through accurate assessment of direct and indirect influences on the environment; promote green procurement of timber and other building materials and green purchasing of office products and other goods; and, achieve and maintain zero emissions through proper waste treatment and 3R (reduce, reuse, recycle) initiatives.
4. Make ongoing improvements to environmental activity and the environmental management system
   Establish environmental budgets to ensure implementation of the Environmental Policies, and make ongoing improvements to environmental budgets and the environmental management system through reviews conducted at least once a year.
5. Ensure strict legal compliance
   Adhere to all environmental laws, rules and regulations, voluntary standards, accords with stakeholders and other environmental conventions.
6. Promote environmental education
   Provide environmental education for all people involved in the business operations of the Sumitomo Forestry Group and encourage voluntary environmental activities.
7. Place emphasis on communication
   Actively disclose information and respect the opinions of stakeholders while pursuing environmental initiatives.
8. Publicly disclose and ensure implementation of the Environmental Policies
   Make the Environmental Policies available to the general public and ensure familiarization with the policies by all people involved in the business operations of the Sumitomo Forestry Group.

Revision on October 1, 2007