Distribution Business

Value Chain of Distribution Business

Verification of Legal Compliance and Sustainability

Under the Sumitomo Group Procurement Policy, We carries out due diligence on timber procurement to ensure that the procurement is performed in a sustainable manner with consideration of compliance, human rights, labor practice, biodiversity, and local communities.

When performing due diligence, the Company ensures suppliers supply the timber that meets logging compliance requirements and use only the timber products made with raw materials that satisfy the requirements by consulting the provided information.

We have been in accordance with the Clean Wood Act since 2017 and strive to procure legal timber throughout the entire Group.

Relevant Social Issues

In our verification of sustainability and legal compliance, we must directly confront broad social challenges related to wood, such as human rights, labor, biodiversity conservation and local communities. We must continually endeavor to mitigate these challenges, all of which impose risks on our business.

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The Sumitomo Forestry Group strives to conduct procurement activities while making considerations about human rights and labor in all timber and products verified to be sustainably and legally compliant as well as conserve biodiversity and contribute to the local community. The progress of these initiatives is reported to the Timber Procurement Committee made up of managers from each section procuring timber to encourage continued improvements in the supply chain.

In addition, given that it is characterized as being a regional industry, Sumitomo Forestry maintains close communication with the suppliers and purchasers of timber and building materials in each region.

Relevant Social Issues

In efforts at the stage of procurement in distribution operations, we verify sustainability and legal compliance while also endeavoring to respond to broad social issues such as human rights, labor, biodiversity conservation and the local community.

Therefore, we have built and work within a management system encompassing the entire Group with the Timber Procurement Committee at the core.

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Delivery and Commercialization

Sumitomo Forestry commercializes and ships the timber that is procured not only as raw wood but also plywood, commercial timber, building materials and other products.

Relevant Social Issues

Sumitomo Forestry provides proper explanations of its initiatives related to social challenges from not only the quality as products but also with certification of sustainability and legal compliance.

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Shipping and Sales

The Sumitomo Forestry Group fulfills accountability by encouraging sales of certified timber as well as labeling with considerations to traceability.

Increasing support to generate demand for wood not only from Japan but overseas as well as increasing exports of Japanese timber is helping revitalize forestry in Japan.

Relevant Social Issues

Social challenges related to initiatives at the point of sales such as certified and Japanese timber have themes that include the depletion of forest resources, illegal logging and regional revitalization.

Our Group believes it is our social responsibility to respond to social challenges related to wood now and into the future by encouraging sales of certified materials and Japanese timber.

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