Basic policy

Sumitomo Forestry Group engages in responsible procurement in accordance with the Sumitomo Forestry Group Procurement Policy. This policy promotes the procurement of timber from forests with emphasis on Japanese timber, plantation timber and timber from certified forests.

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Promoting Sales of Certified Timber

The Sumitomo Forestry Group is committed to building reliable supply chains with its suppliers and procuring sustainable timber, and accordingly, uses and supports third-party certification— forest certification systems as indices that insure the timber are procured from sustainably managed forests.

Moreover, the Group believes that by obtaining certifications itself and providing certified timber to markets and consumers, it is able to contribute to promote the forest certification systems.

The status of certification at the Sumitomo Forestry Group has 219,000 hectors with the FM certification and ten organizations with the CoC certification.

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Status of Sumitomo Forestry Group Forest Certification/ CoC Certification*1

Certified Forests (Company) Certification System Date Certified Certification Number Certification Issuing Body
Sumitomo Forestry Co., Ltd.
International Marketing Department, and Branches, Timber and Building Materials Division
FSC® March 28, 2006 CU-COC-823910 / CU-CW-823910 Control Union Certifications
PEFC September 22, 2008 CEF1201 Japan Gas Appliances Inspection Association (JIA)
Sumitomo Forestry Co., Ltd.
Timber and Building Materials Department and Hokkaido Branch, Timber and Building Materials Division
MOCCA (Timber Solutions) Department, Housing and Construction Division
SGEC January 24, 2017 JIA-W045 Japan Forest Technology Association (JAFTA)
Sumitomo Forestry Co., Ltd.
Hokkaido Branch, Timber and Building Materials Division
Construction Materials Development Department, Housing and Construction Division
SGEC October 1, 2007 JAFTA-W038*2 Japan Forest Technology Association (JAFTA)
Sumitomo Forestry Wood Products Co., Ltd. SGEC September 25, 2006 JAFTA-W017 Japan Forest Technology Association (JAFTA)
Sumitomo Forestry Crest Co., Ltd. FSC® September 13, 2009 SGSHK-COC-006693 SGS
SGEC December 26, 2007 JAFTA-W041 Japan Forest Technology Association (JAFTA)
Nelson Pine Industries Ltd.(NPIL)(New Zealand) FSC® June 22, 2009 SAI-COC-001290 /
SAI-CW-001290
QMI-SAI CANADA Limited
PT. Kutai Timber Indonesia(KTI)(Indonesia) FSC® January 10, 2005 TT-COC-002009 BM TRADA
PT. Rimba Partikel Indonesia(RPI)(Indonesia) FSC® October 15, 2012 TT-COC-004325 BM TRADA
PT.Sumitomo Forestry Indonesia FSC® April 26, 2016 TT-COC-005903 PT. Mutuagung Lestari
Sumitomo Forestry (Singapore) Ltd. FSC® January 28, 2008 RA-COC-005542 /
RA-CW-005542
Rainforest Alliance

*1 CoC (Chain of Custody) certification is a system to certify companies operating processing and distribution of forest products. It tracks the certified forest products (logged in the certified forests) in the course of processing and distribution and certifies that the risk evaluation is conducted for non-certified timber, and allows to the certification label on the products whose entire production process is CoC certified.

*2 Includes operators other than Sumitomo Forestry Group companies due to being a comprehensive certification.

Major Forest Certification Systems

FSC (Forest Stewardship Council®) (FSC-C113957)

FSC is an organization founded in 1993 led by World Wide Fund for Nature (WWF) and consists of representatives from environmental organizations, forest workers, timber users and traders, human rights organizations, and local forestry unions. It is considered a pioneer amongst forest certification system operators.

Adhering to the 10 principles and 56 regulations encompassing environmental impact, local society, and indigenous people's rights, FSC-accredited certification bodies will undertake reviews. Recently, country or regional standards as well as the review procedure for small-scale forest owners have been introduced to provide greater support for diverse forests and owners.

PEFC (Programme for the Endorsement of Forest Certification)

Forestry organizations of 11 European countries established PEFC together in 1999 as an organization to mutually authenticate the system of each country. PEFC does not directly authenticate an individual forest, but when the PEFC's required conditions that adapted “the inter-governmental process” implemented by 149 countries is met, the country's own forest certification system is authenticated by PEFC. Joined by non-European countries in 2003, the organization originally called Pan European Forest Certification Schemes changed its name to Program for the Endorsement of Forest Certification. Since then, PEFC has shown drastic growth, and to date its total certified area is the largest across the world.

Sustainable Green Ecosystem Council (SGEC)

SGEC authenticates forest management that demonstrates both rich natural environment and sustainable timber production in Japan. With reverence for Japan's indigenous natural environment, social customs, and culture, the review premises on seven criteria. SGEC can also authenticates forestry operations and distribution systems under CoC. SGEC joined PEFC in November 2014 and submitted a mutual authentication application to PEFC in March 2015, which was mutually approved in June 2016.

Promoting Wider Use of Certified Timber

The utmost importance in the sales of certified timber is the separate management of certified and non-certified materials. The CoC certification by incorporating a third-party authentication insures that the timber sold to customers are produced in the certified forests.

The Sumitomo Forestry Group sets the proportion of certified timber among the sales volume of imported timber as an indicator and is working to increase the figure to 12% or above by 2020. In fiscal 2017, indicative figure was 12.8%.

As for timber certified by SGEC, the certification system unique to Japan, the Group has set the 2020 sales volume target at 85,000 m³. In fiscal 2017, the indicative figure was 78,000m³.

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Independent Assurance for Export of Domestic Timber

Overseas demand for timber is forecast to grow in emerging countries including China propelled by economic development and population growth. Influenced by such circumstance, Japanese timber exportation is also on the rise in recent years, and thus, the Sumitomo Forestry Group set goals for fiscal 2020 and is entering new overseas market opportunities for domestic timber.

In fiscal 2017, avenues opened to new ports and exports began in areas outside of Kyushu as the volume of exports increase from existing ports centered upon Kyushu in response to the high demand of China as the primary country for exports. This realized a dramatic growth compared to the previous fiscal year with 120,000 m³ of exports.

Breakdown of Net Sales in the Timber & Building Materials Business (Non-consolidated)

Breakdown of Net Sales in the Timber & Building Materials Business (Non-consolidated)

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