Basic Policy

The Sumitomo Forestry Group has been committed to responsible timber procurement and having established Timber Procurement Standard and Timber Procurement Philosophy and Policy in 2005 and 2007 respectively, to bring contributions to sustainable society via business activities of “wood” -a renewable resource.

In July 2015, Timber Procurement Philosophy and Policy were extended beyond timber and became subject to procurement of construction materials and other items, and reestablished as Sumitomo Forestry Group Procurement Policy. The Group’s economically, socially and environmentally responsible procurement today is being carried out based on this policy.

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Green Procurement and CSR Procurement

The Sumitomo Forestry Group formulated the Green Procurement Guidelines in 2002. The Guidelines establish standards for procuring products from two perspectives: the supplier's stance toward the environment (corporate activities assessment) and the product's impact on the environment throughout its life cycle (product assessment).

In 2013, the Group revised the Green Procurement Guidelines and added items to ensure progress of CSR initiatives concerning occupational health and safety and human rights under “corporate activity assessment.”

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Environmental Consideration and Legal Compliance in Responsible Material Procurement

The Sumitomo Forestry Group procures materials for its Housing and Construction Business in accordance with the Sumitomo Forestry Group Green Procurement Guidelines.

When adopting new products or reforming existing products, we create green procurement ledgers as well as waste disposal confirmation forms (product/packaging) in addition to product specifications which define the specifications, standards and quality criteria of products. Green procurement ledgers confirm aspects of procurement such as verifying the timber procured has been legally logged, confirming the no occurrence no volatile organic compounds (VOCs) as well as use of certified chemicals such as insecticides when adopting new products. Regarding materials made of wood, documentations such as legal certification are confirmed to ensure that procured wood materials comply with the Clean Wood Act. The waste disposal confirmation forms (product/packaging) verify aspects such as the type of offcuts, disposal methods and processing facilities.

We create two copies of each form and suppliers and we each keep copies.

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Communication with Procurement Partners and Partner Evaluation

Sumitomo Forestry's Housing and Construction Business worksites are found in every region of the country, and they rely on support from the many business partners that the Sumitomo Forestry Group collaborates with. The Company considers communication with these companies to be vital in order to share with them its philosophy of improving the quality of homes while protecting the environment.

Main Communication Activities with the Business Partners of Sumitomo Forestry's Housing and Construction Division

Name/Scale Description
Evaluation and feedback based on the Supplier Evaluation Standards
Implementation rate: 100% (2018)
Material suppliers of the Housing and Construction Business (suppliers excluding on-site equipment manufacturers, precut factories, building material operators and frame centers) are evaluated every year per type of material based on items including corporate overview, quality, cost, delivery period, environmental response as well as services. We provide feedback from the evaluation results as a way of bettering our procurement.
In fiscal 2018, we provided 235 feedbacks, a 100% implementation rate. In addition, we regularly audit supplier plants as part of the evaluation. In fiscal 2018, we carried out plant audit in 153 plants. If buildings are constructed with materials, which are not confirmed for performance quality, it would pose various risks for the people and the buildings. Therefore, we have formulated methods for auditing plants that focus on quality management to confirm whether material we procure are manufactured based on our quality standards and other aspects.

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Initiatives for Sustainability in Timber and Timber Products

At Sumitomo Forestry Group, our Procurement Policy emphasizes procurement of sustainable timber and wood products. Sumitomo Forestry Group has established the Timber Procurement Committee to carry out due diligence on timber procurement to ensure that the procurement is performed in a sustainable manner with consideration of legal compliance, human rights, occupational health and safety, biodiversity, and indigenous/local communities. Personnel from the Construction Materials Development Department of the Housing and Construction Division also attend the Timber Procurement Committee meetings as members.

The Mid-Term Sustainability Targets published in May 2019 renewed our stated commitment to 100% procurement of sustainable timber and wood products, initiating an effort to reach this target by fiscal 2021.

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Responsible Material Procurement

Sustainable procurement practices throughout the supply chain has come to be expected in material procurement that goes beyond checking on quality, cost and delivery dates to confirming efforts made by the material suppliers with respect to the environment, society and other aspects of CSR.

In the Mid-Term Sustainability Targets announced in May 2019, we commit to carrying out an annual sustainability procurement survey, through which we evaluate an extended set of targets in areas such as human rights, occupational health and safety, biodiversity conservation and sustainability of timber and wood products.

The plan calls for administering surveys on at least 90% of suppliers (based on the purchasing cost) by fiscal 2021.

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Using More Domestic Timber in Home Products

Fiscal 2018 Ratio of Domestic Wood of Structural
and Non-structural Materials
for each MB Method Home
71symbol for Independent assurance

Fiscal 2018 Ratio of Domestic Wood of Structural
and Non-structural Materials
for each BF Method Home
50symbol for Independent assurance

Sumitomo Forestry Home houses primarily take advantage of the Big-Frame Construction Method (BF Method) and the Multi-Balance Construction Method (MB Method). We have been striving to increase the ratio of domestic wood of structural members and non-structural materials used in these two construction methods. By fiscal 2018, we had achieved 50%symbol for Independent assurance and 71%symbol for Independent assurance for these two materials, respectively.

Fiscal 2018 Percentage of Custom-Built Detached Houses Completed

Graph:Fiscal 2018 Percentage of Custom-Built Detached Houses Completed

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Sustainability Report