Material Issue 2: Promote the reduction of the environmental impact of our business activities

Basic policy

With the impact of climate change becoming increasingly problematic on a global scale, companies are being asked to reduce greenhouse gas emissions and implement energy saving initiatives. In Japan, the Basic Energy Plan of July 2018 set out a policy goal of having “more than 50% of new custom-built detached houses built by housing manufacturers and others to be ZEH (Net Zero Energy Houses) by 2020, and to have all newly built houses be ZEH on average by 2030.” In addition, as part of the roadmap to popularize ZEH and achieve this average by 2030, major companies involved in the construction of detached houses are being asked to popularize ZEH on their own through the supply of large volumes of ZEH.

Sumitomo Forestry Group has operations in the housing business and in the manufacture of wood panels and building materials. In consideration of the environmental impact of these operations, the Group fully recognizes the importance of reducing greenhouse emissions and taking other measures to combat climate change through the promotion of strict energy-saving activities, renewable energy use and other efforts. With a mid- to long-term perspective of the future, in 2018, we established greenhouse gas emission reduction goals for 2030.

In our housing business, we have set a fiscal 2020 target for an 80% ratio of ZEH. Starting in April 2017, we have promoted the popularization of ZEH by adding reinforced insulation for the building and aperture area and solar power energy generation systems as standard specifications for newly built houses. In addition, to reduce environmental burden and more effectively utilize natural resources, we are promoting the reduction, reuse and recycling of industrial waste.

With the establishment of new KPIs, we are also working to further revitalize our activities and reduce risk.

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Progress of the Mid-Term CSR Management Plan

SDGs7,11,12,13,15

Current awareness of issues and basic strategies Evaluation metrics FY2017 target FY2017 result Rating FY2018 target FY2020 target
Low-carbon society Reduction of CO2 emissions in the Group In the office segment (consolidated company within and outside Japan) Change in CO2 emissions compared to FY2013 (%) 7.2 reduction Total emissions 32,887 t-CO2 10.1 reduction Total emissions 31,871 t-CO2 11.4 reduction Total emissions 31,407 t-CO2 At least 7.0*1 (16.0) reduction
Sumitomo Forestry (offices in Japan)
13.3 reduction 18.7 reduction 19.4 reduction  
Affiliated companies in Japan (offices)
1.3 reduction 4.6 reduction 1.8 reduction  
Affiliated companies outside Japan (offices)
+3.4 +14.0 × 3.0 reduction  
Kutai Timber Indonesia (Indonesia) Change in CO2 emissions per production volume compared to the previous year (%) 0.9 reduction 10.8 reduction +0.8 At least 1% reduction per year on average per production volume in FY 2015 - 2020
Vina Eco Board (Vietnam) 7.4 reduction +38.0 × 23.9 reduction
AST Indonesia (Indonesia) 8.5 reduction +9.0 × 4.1 reduction
Nelson Pine Industries (New Zealand) +2.7 5.8 reduction +23.7
Rimba Partikel Indonesia (Indonesia) 10.1 reduction 9.6 reduction 0.5 reduction
Reduction of CO2 emissions outside the Group (products, service recipients) Percentage of Green Smart houses (%) (Number of Green Smart houses when an order is placed for new custom-built detached housing / total number of houses ordered) 70.0 69.4 73.0 At least 80.0
Percentage of Green Smart / ZEH type new custom-built detached houses (%) (Number of Green Smart / ZEH type when construction started/total number of houses that started construction)*2 35.0 30.1 45.0 At least 80.0

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

*2 The calculation method for indicators differs from the ZEH standardization results (FY2017) published on the Sumitomo Forestry ZEH website (http://sfc.jp/ie/lineup/smart/zeh/).

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

SDGs11,12

Current awareness of issues and basic strategies Evaluation metrics FY2017 target FY2017 result Rating FY2018 target FY2020 target
Recycling society Recycling society Achieve zero emissions Recycling rate at new housing construction sites (%) 92.0 92.5 93.9 98.0
Recycling rate at remodeling sites (%) 79.4 76.2 77.6 80.0
Reduce volume of industrial waste generated Reduction in industrial waste generated at new housing construction sites compared to FY 2013 (%) 26.0 reduction 15.5 reduction × 20.6 reduction 30 reduction
Change in industrial waste per sales cost*1 compared to FY 2014 (%) 3.5 reduction +5.2 × +1.9 At least 2 reduction

*1 Cost of in-house sales for manufacturing facilities in Japan

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

Economic Effect Seen by Promoting the Reduction of the Environmental Impact of Our Business Activities

Effects Value (million yen)
Income Profit on sold for value 41
Cost Reduction Cost Reduction Amount saved as a result of energy-saving efforts
*Include the fluctuation of petroleum price
135
Amount saved as a result of waste reduction efforts 72
Total 248

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CSR