Material Issue 1: Continue to procure wood and materials that take sustainability and biodiversity into consideration

Basic policy

With businesses centered on wood, Sumitomo Forestry Group promotes sustainable forest management and timber procurement both domestically and abroad. In addition, given our direct business involvement in forests, which nurture biodiversity, the Group has set biodiversity as one of our CSR material issues for achievement by 2020.

Due to the influx of illegally logged timber to markets with lax regulations, as well as the indiscriminate diversion of land for the increased production of such food products as palm oil, soybeans and beef in Brazil, Indonesia, Malaysia and other countries, the world’s forest areas continue to decrease. Against this backdrop, countries around the world are adopting or reinforcing regulations to eliminate illegally logged timber from the markets. Further stronger measures to counter illegal logging are expected to be implemented globally. On the other hand, with the increased aging of and decline in the number of forestry workers, there are concerns that some of Japan’s forests, in particular plantations, may be left to waste.

To resolve this problem of diminishing forest areas around the world, in May 2017, the Clean Wood Act was implemented to promote the distribution and use of logged timber and processed products that abide by regulations in Japan and the country of origin. In November 2017, Sumitomo Forestry was registered as a “Type 1 Certified Timber-Related Business Operator” by the certification organization Japan Gas Appliances Inspection Association.

Sumitomo Forestry Group is striving for the establishment of forest management that increases the handling of sustainable timber, the utilization of sustainable forest resources through confirmation of legality, and the maintenance of biodiversity. To fulfill this and for the valuation of natural capital, the Group has set out the following KPI and hopes to contribute to resolving these ever-growing societal issues.

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Progress of the Mid-Term CSR Management Plan

SDGs12,13,15

Current awareness of issues and basic strategies Evaluation metrics FY2017 target FY2017 result Rating FY2018 target FY2020 target
Environmentally responsible society Increase volume of sustainable wood handled, and utilize sustainable forest resources by verifying legal compliance Percentage of certified timber among all imported timber sold (%) 11.0 12.8 12.0 12.0
Volume of exported Japanese timber (thousand m³) 100 120 183 200
Volume of plantation timber, certified timber, and Japanese timber handled at distribution hubs overseas (thousand m³) 964 1,163 626 783
Volume of fuel wood chips handled (thousand m³) 861 847 1,316 800*1
(1,380)
Volume of certified timber (by SGEC) handled at distribution hubs in Japan (thousand m³) 60 78 68 85
Volume of unused wood resource handled from Japanese timber (kt) 200 286 236 185*1
(236)
Percentage of Japanese timber used for new custom-built detached housing
(Housing & Construction Businesses)
Percentage of the Multi-Balance Construction Method (%) 72.0 71.0 71.0 75.0
Percentage of the Big-Frame Construction Method (%) 51.0 50.0 50.0 55.0
Percentage of reviews conducted for wood product suppliers who handle directly imported timber and wood products with verified legal compliance (%)(Timber and wood product department) 100 100 100 100
Establish forestry management that enables conservation of biodiversity, and value as natural capital Percentage of certified (by SGEC) forests in newly acquired forests managed by the Group (%) 100 100 100 100
Number of native species planted at new detached housing sites (trees) 35,000 31,248 36,000 210,000 / 6 years

*1 Original target of the Mid-term Plan. Based on the FY2017 results, the FY2020 target was revised upwardly.

* Rating
◯:Achieved △:Achieved at least 70% of the target ✕:Achieved less than 70%

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CSR