In order to advance the recycling of resources, the Company first defines the “zero emissions” target to be pursued, and works to achieve this target.

Based on this definition, the Group will continue zero emissions activities at domestic manufacturing facilities, and initially aims to achieve zero emissions at new construction sites¹ in the capital area by December 31, 2012.
The recycling rate at the end of fiscal 2011 was 89.3%.

• 1 Includes residential landscaping

Policy & Plans

Sumitomo Forestry identifies the volume of waste generated at new housing construction sites and works to reduce this volume, while also preventing inappropriate disposal. The Company is also working towards the achievement of zero emissions by promoting the processing of industrial waste by utilizing “inter-region recovery and recycling certification system¹.”

• 1 When manufacturers collect industrial waste across multiple prefectures, this is a special system whereby approval for waste disposal is not required from each separate municipal government provided that the Minister for the Environment certifies compliance with certain strict criteria such as processing capacity, even when the manufacturer outsources collection/transportation, intermediate treatment and final disposal.

Results

FY2011 Recycling Results

Within the items targeted for zero emissions, a recycling rate of 86.8% was achieved for waste generated at new housing construction sites.

Volume of Industrial Waste from New Detached Housing (FY2011)

Treatment of Industrial Waste Utilizing Inter-Region Recovery and Recycling Certification System

On December 8, 2010, Sumitomo Forestry obtained industrial waste certification from the Minister of the Environment based on an inter-region recovery and recycling certification system. This system enables companies designated by Sumitomo Forestry (such as materials suppliers) to be registered as “persons engaged in the collection or transportation of industrial waste,” so that approval for industrial waste treatment is not required in relation to the collection and transportation of the Company’s waste. This makes it possible to collect industrial waste by utilizing specialist waste collection/transportation vehicles and trucks returning to base after having transported homebuilding materials to new construction sites, and to consolidate waste collection at collection centers registered in the inter-region certification system.
The consolidated waste is entrusted directly to treatment contractors that can process it with zero emissions, or is transported to in-house facilities where high-level separation can be carried out. After sorting, the waste is entrusted directly to third-party recycling facilities or is sold at a profit.

Establishment of the Capital Area Recycling Center

• To achieve zero emissions at new construction sites, waste needs to be sorted to the highest degree possible. Thinking that it would be effective to establish a specialist in-house waste separation facility to carry out high-level sorting of waste, Sumitomo established the Capital Area Recycling Center in Kazo City, Saitama Prefecture and it has been sequentially launching operations at this center since July 2012. The ultimate goal of the consolidation and separation of waste from housing construction in the capital area and its transportation to recycling centers is to achieve zero emissions in the Tokyo metropolitan area by December 2012.
• Establishment of the recycling center will make it possible to collect and analyze waste-related data, and provide feedback on potential improvements in areas such as product development, materials, design, production and distribution, which will lead to a reduction in the volume of waste being generated.

Current and New Process Flows

Validation with Industrial Waste Traceability System

• In fiscal 2008, the Housing Division conducted a trial run of an industrial waste traceability system² that uses IC chips to ascertain the actual output of waste from new housing construction sites. In fiscal 2009, this industrial waste traceability system was installed and operated at 10 branches, including the six branches in the Greater Tokyo area, Mito, Kyoto, Shiga, and Kita-Kyushu. The operational plans for the Capital Area Recycling Center have been drafted with reference to the data collected in this system.
• This system will come to an end at the six branches in the Tokyo area and Mito along with the launch of the recycling center collection system utilizing inter-region recovery and recycling certification system. However, operations were launched at the Shinshu branch in February 2012 and it will also continue to operate in other areas as the Company works to reduce waste by comparing the data before and after introduction of the system.

• 2 Ministry of the Environment, ‘Project to Create the Technological Foundations to Promote the Formation of a Next Generation Recycling Society’ fiscal 2008

Initiatives to Limit Industrial Waste from Packaging Materials

The Group continues its efforts to limit the generation of industrial waste through the use of precut timber, reducing the amount of packaging materials used. Examples of efforts in this area include setting the dimensions of the eaves to minimize the waste generated when producing precut timber for soffits (the underside of eaves) and end cuts from materials used to finish the underside of the home’s eaves. In addition, the practicality and costs of pre-cutting ceramic roof tiles, sidings, and panels for exterior reinforcement are being investigated for future deployment.

Future Plans

Sumitomo Forestry will continue its efforts to increase its recycling rate at its business sites throughout Japan and achieve zero emissions through recycling at recycling centers that utilize the inter-region recovery and recycling certification system. The Company’s Capital Area Recycling Center is working toward achieving even finer separation of waste at the same time as developing materials recycled from in-house production and utilizing them in the construction of new houses.

Results

Achievement of Zero Emissions

Zero Emissions was achieved at the plants of Sumirin Agro-Products Co., Ltd. in fiscal 2011 as a result of its continuing efforts to eliminate emissions. The plants operated by Sumitomo Forestry Crest Co., Ltd. have also been working to reduce industrial waste by searching for and implementing new methods of processing difficult-to-recycle waste, but despite these efforts their overall result fell slightly below the target for fiscal 2011.

Volume of Waste Generated at Plants (FY2011)