Basic Policy

Sumitomo Forestry Group engages in responsible procurement in accordance with the Sumitomo Forestry Group Procurement Policy. Up to now, we have been promoting the procurement of sustainable timber as domestic timber, plantation timber and certified timber. In keeping with our “Mid-Term Sustainability Targets as part of the 2021 Mid-term Management Plan”, we will work for still more widespread use of sustainable timber and building materials throughout the broader community by procuring 100% sustainable timber and wood products.

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Promotion for Sales of Environmentally-friendly KIKORIN-PLYWOOD

Sumitomo Forestry has set a ratio of products that use plantation trees and certified timber from the procurement of import wood board products such as plywood as a 2020 target and it strives to expand this business. Plywood that uses 50% or more plantation timber, FSC-certified or PEFC-certified timber is marketed as KIKORIN-PLYWOOD, and some of its revenue is invested in plantation businesses in Indonesia. This product made using 50% or more plantation timber, was praised as being environmentally conscious. It received a Commendation Prize in the 1st EcoPro Awards* on September 12, 2018. It accounted for 9.1% of our plywood sales volume during fiscal 2018, amounting to about 50,541m³. We will contribute to environmental protection by expanding this volume fivefold in fiscal 2020 to 240,000m³.

* Hosted by the Japan Environmental Management Association for Industry. It was established in fiscal 2004 in order to help further develop and spread the use of Japanese eco-products by broadly communicating information about eco-products among current and prospective clients while also supporting the efforts of the relevant suppliers. The EcoProducts Awards were renovated in fiscal 2018, now presented as the EcoPro Awards.

KIKORIN-PLYWOOD

KIKORIN-PLYWOOD

EcoPro Awards

targets result

Sales of KIKORIN-PLYWOOD

2014 2015 2016 2017 2018
31,900m³ 28,100m³ 30,200m³ 46,255m³ 50,541m³

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Exporting Domestic Timber

Overseas demand for timber is forecast to grow in emerging countries including China propelled by economic development and population growth. Under these circumstances, Japanese timber exports have also been on the rise in recent years, and a target of 262,000 m³ has been set for Japanese timber export volume within our Mid-Term Sustainability Targets, to be reached in fiscal 2021 as we explore overseas market opportunities for Japanese timber.

In fiscal 2018, export volumes from existing ports centering around Kyushu increased in response to robust demand from China, while new port development and the start of exports from ports other than in Kyushu also began, resulting in a 33.3% annual increase in domestic timber exports to 160,000 m³.

Fiscal 2018 Breakdown of Net Sales in the Timber & Building Materials Business (Non-consolidated)

Fiscal 2018 Breakdown of Net Sales in the Timber & Building Materials Business (Non-consolidated)

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Sustainability Report