Distribution Business

Value Chain of Distribution Business

Verification of Legal Compliance and Sustainability

Verification of Legal Compliance and Sustainability

Under the Sumitomo Group Procurement Policy, we carry 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, local communities, and other matters.

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. In fiscal 2018, we conducted sustainability surveys at all 109 direct suppliers under study, as well as to 43 suppliers for overseas Group companies engaged in distribution. We strengthened the management system by scoring and improving the visualization of initiatives based on the responses from questionnaire survey. Moreover, we demanded improvement on the suppliers that did not satisfy our standards.

In addition, in order to comply with the Clean Wood Act from 2017, our applications for registration as Wood Related Entities were processed by the registration application agency, and we were registered. Also in compliance with the law, we completed our reporting on timber procurement for fiscal 2018.

Relevant Social Issues

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

Relevant CSR Initiatives

Procurement

Procurement

The Sumitomo Forestry Group strives to conduct procurement activities while making considerations about human rights and labor in all timber and wood 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 Group 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 legal compliance and sustainability while also endeavoring to respond to broad social issues such as human rights, occupational health and safety, labor, biodiversity conservation and the local community.

In response, we have built a management system which deliberates matters such as timber procurement standards and illegal timber with the Timber Procurement Committee at its core. We are confirming traceability of timber and legal compliance while also confirming consideration towards human rights, labor and biodiversity conservation.

Relevant CSR Initiatives

Commercialization and Delivery

Commercialization and Delivery

Sumitomo Forestry Group 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

In developing and delivering products, we engage in appropriate information disclosure regarding our initiatives related to social challenges from not only the quality as products but also with certification of sustainability and legal compliance.

Relevant CSR Initiatives

Shipping and Sales

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 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.

Relevant CSR Initiatives

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Sustainability Report