Basic Policy of Our Procurement

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, raw materials of products, and end products, 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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Responsible Material Procurement

The Sumitomo Forestry Group procures materials for its Housing & Construction Business in accordance with the Sumitomo Forestry Group Green Procurement Guidelines. We have acquired the CoC certification for timber in the Construction Materials Development Department and promoted a distribution system in our supply chain.

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. 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 keep one copy at the Construction Materials Development Department while giving the other form to the supplier to store after confirmation by the relevant internal departments.

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Using More Domestic Timber in Home Products

Fiscal 2017 Ratio of Domestic Wood of Structural and Non-structural Materials for each MB Method Home
71%

Fiscal 2017 Ratio of Domestic Wood of Structural and Non-structural Materials for each BF Method Home
50%

Sumitomo Forestry is working to increase the ratio of domestic timber usage for Sumitomo Forestry Home house through development and incorporation of various component materials. Our custom-built housing primarily takes advantage of the Big-Frame Construction Method (BF Method) and the Multi-Balance Construction Method (MB Method). We strive to improve the ratio of domestic wood used in our housing products by setting targets for these two methods by 2020.

Fiscal 2017 Percentage of Custom-built Detached Houses Completed

Fiscal 2017 Percentage of Custom-built Detached Houses Completed

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Communication with Procurement Partners and Partner Evaluation

Sumitomo Forestry's Housing & Construction Business worksites are found in every region of the country, and they rely on support from the many partner companies 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 & Construction Division

Name/scale Description
Evaluation and feedback based on the Supplier Evaluation Standards
Response rate: 81.7% of main business partners (2017)
Material suppliers of the Housing & Construction Business (suppliers excluding on-site equipment manufacturers, precut factories, building material operators and frame centers) are evaluated every year on items that include a corporate overview, quality, cost, delivery period, environmental response as well as services. We provide feedback from the evaluation results as a way to play a role in bettering our suppliers. In order to strengthen the quality control of the products we procure, we reviewed the auditing procedures at supplier factories and have partially started to take new procedures.

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CSR