CSR Information

Saving of Energy and Reduction of Greenhouse Gas
Emissions from Business Activities

Reducing CO2 Emissions from Offices

At offices, the Sumitomo Forestry Group CO2 emissions in fiscal 2016 were 32,660 t-CO2, 7.8% and 1.4% reductions compared to the base year (fiscal 2013) for the Mid-Term CSR Management Plan by fiscal 2020 and the previous year, respectively.

All business sites of Group companies in Japan are advancing the introduction of fuel-efficient vehicles to make 393 of the 433 company-owned vehicles fuel-efficient vehicles in fiscal 2016 (91% adoption rate of fuel-efficient vehicles). In addition, the Group has encouraged employees who drive on the job at offices and business sites of Group companies in Japan to participate in the Eco Training course run by the Japan Automobile Federation (JAF). These efforts have reduced the CO2 resulting from the use of gasoline 3.3% compared to the previous fiscal year.

The Group has also worked to reduce power consumption. In the Housing Division, power consumption has been reduced by moving to a “free address” office system (where personnel are not assigned to fixed desks) to make more efficient use of office space. In addition, the division has also proceeded to install solar power generation systems and LED lighting at its model homes and other business sites.

The Group will continue to reduce CO2 emissions, such as by implementing promotion of eco-drive, to raise awareness among employees.

Power generation through solar panels installed April 2012 at the Omiya Katakura Exhibition Hall (Saitama)

Power generation through solar panels installed April 2012 at the Omiya Katakura model homes (Saitama)

Mid-Term CSR Management Plan

Reduce total CO2 emissions from all offices of domestic and overseas consolidated companies by 7% compared to fiscal 2013 by fiscal 2020.

In fiscal 2016, the total amount of CO2 emissions in the office category dropped by 7.8% to 32,660 t-CO2. The Group will start the eco-drive curriculum in addition to ongoing safe-drive training provided by the Housing Division with the aim to lower gasoline-derived CO2 emissions towards the following year’s target.

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CO2 Emissions (t-CO2) from Offices
FY FY 2013
(Base Year)
FY 2015
(Results)
FY 2016
(Results)
FY 2016
(Target)
FY 2017
(Target)
FY 2020
(Target)
Total CO2 Emissions 35,440
t-CO2
33,130
t-CO2
32,660
t-CO2
33,746
t-CO2
32,887
t-CO2
32,959
t-CO2
Compared to 2013 Percentage Change - 6.5% reduction 7.8% reduction 4.8% reduction 7.2% reduction 7.0% reduction

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Reducing CO2 Emissions Outside Offices

To address CO2 emissions collectively, the Group set manufacturing plants of Sumitomo Forestry Crest and Sumirin Agro Products, Tsukuba Research Institute, the Metropolitan Area Recycling Center, Sumirin Fill Care, Kawanokita Development, and Japan Bio Energy as domestic non-office category constituents, as well as RPI, ASTI, KTI, Alpine, VECO, and NPIL’s overseas manufacturing plants, SRP, OBT, and Canyon Creek as overseas non-office category constituents with their respective reduction targets.

Mid-Term CSR Management Plan

Set company-specific reduction targets for CO2 emissions; i.e. over 1% average percent per-unit emission reduction between fiscal 2015 to 2020

In fiscal 2016, we advanced reductions by improving production efficiency and operational skills such as at manufacturing plants as applicable departments in Japan. In applicable departments overseas, we worked to put in place measures to reduce CO2 for plants impacted by factors such as increased equipment due to changes to methods for electrical use (purchased) and the start of new businesses.

Major Non-Office CO2 Emission Reduction Performance and Targets
(Per-unit Emissions)
Company Name FY 2015
(Results)
FY 2016
(Target)
FY 2016
(Results)
FY 2017
(Target)
Sumitomo Forestry Crest Co., Ltd. 26.1% reduction 9.5% reduction 4.5% reduction 1.7% reduction
Sumirin Agro-Products Co., Ltd. 18.6% reduction 2.7% increase 54.6% increase 16.9% reduction
PT. Rimba Partikel Indonesia
(RPI)
53.1% increase 18.3% reduction 15.8% increase 10.1% reduction
PT. AST Indonesia
(ASTI)
7.3% increase 0.9% increase 16.0% increase 8.5% reduction
PT. Kutai Timber Indonesia
(KTI)
5.9% increase 1.9% reduction 3.1% increase 0.9% reduction
Alpine MDF Industries Pty Ltd.
(Alpine)
5.5% increase 4.6% increase 10.6% reduction 3.3% increase
Nelson Pine Industries Ltd.
(NPIL)
5.2% reduction 0.4% reduction 0.7% reduction 2.7% increase
Vina Eco Board Co., Ltd.
(VECO)
5.7% reduction 2.2% increase 5.4% reduction 7.4% reduction
  • * Increases and decreases are in reference to respective previous years.

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Reducing CO2 Emissions from Transportation

Under the revised Act on the Rational Use of Energy in Japan, consigners*1 are required to reduce per-unit energy consumption by an annual average of 1% or more in the medium to long term in relation to the transportation of goods. Sumitomo Forestry and Sumitomo Forestry Crest fall under the category of “specified consigner” (annual freight transportation volume is 30 million ton-km*2 or more), obligating them to submit reports to the Japanese Government. Sumitomo Forestry therefore sets a target each fiscal year to reduce per-unit energy consumption*3 in transportation by 1% or more compared to the previous year. Sumitomo Forestry Crest also sets targets to reduce per-unit energy consumption compared to the previous year.

In fiscal 2016, Sumitomo Forestry's per-unit energy consumption was 83.9% compared to the previous year and Sumitomo Forestry Crest's was 96.9%.

Ongoing efforts will be made to reduce CO2 emissions through cooperation with transportation partners on such measures as improving loading efficiency, shifting from land to sea transportation, and utilizing the return leg of construction material deliveries to transport waste. Efforts will also be made in ascertaining CO2 emissions across the entire supply chain, which includes both domestic and international transportation.

  • *1 Cosigners as defined in the Act on the Rational Use of Energy in Japan is someone who transports cargo to carriers for our businesses
  • *2 Freight transportation volume (ton-kilometers) = freight weight (tons) × distance travelled (km)
  • *3 Sumitomo Forestry measures energy consumption per unit of volume handled. Sumitomo Forestry Crest measures energy consumption per unit of net sales
Energy Consumption From Transportation,
CO2 Emissions and Energy Consumption Per-Unit (FY2016 Performance)
Energy Use
(Crude Oil Equivalent)
CO2 emissions Energy Consumption Per Unit
Sumitomo Forestry 3,327kL 8,906t-CO2 0.00164kL/m3
(Ratio to Previous FY: 83.9%)
Sumitomo Forestry Crest Co., Ltd. 2,135kL 5,670t-CO2 0.0000595kL/1,000 Yen
(Ratio to Previous FY: 96.9%)

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Establishment of an Efficient Delivery

Sumitomo Forestry is reducing the CO2 emissions in its transportation processes by bringing together Sumitomo Forestry Home houses from multiple manufactures momentarily at relay centers in 28 locations throughout Japan with a system to consolidate and transport shipments. Home Eco Logistics takes on logistics operations for the Sumitomo Forestry Group with the housing business at the core and also actively puts forward proposals for efficient logistics operations to material manufacturers, housing manufacturers, housing construction companies and building material distributors. In the year to March 2017, we asked six construction material operators for consulting focused on more efficient operations in warehouses as well as rational proposals for inventory management. As of March 2017, Home Eco Logistics provided logistics operations to more than 40 companies. In the future, we will actively strive in cooperative distribution through multiple companies because of insufficient shipment capacity forecast due to a decrease in the amount of new housing construction.

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Greenhouse Gas Emissions per Scope Based on the GHG Protocol

Since fiscal 2012, the Sumitomo Forestry Group has ascertained the volume of its CO2 emissions according to different scopes*1 based on the GHG Protocol, a set of widely used international accounting tools for quantifying GHG emissions. In view of the increasing demand of renewable energy in recent years, the Sumitomo Forestry Group entered the biomass power generation business in 2011 and has begun operation of Okhotsk Bio Energy in December 2016 as a consolidated subsidiary. This power plant uses coal as supplemental fuel for smooth operation and maintenance while using wood leftover from logging as the primary fuel. Therefore, the total CO2 emissions in scope 1 and 2 for fiscal 2016 at the Sumitomo Forestry Group was 336,017 t-CO2, which is a 72.4% increase compared to the previous year (196,963 t-CO2, a 1% increase compared to the previous year when comparing the existing businesses with the previous year).

In addition, when looking by business, our overseas business made up 44.9% while our plants and power generation business in Japan composes 43.7%. We started to calculate Scope 3 in fiscal 2013 and the targets for this calculation largely expanded in fiscal 2015. In the future, we will examine targets via SBT*2 in an effort to reduce greenhouse gas emissions another level.

  • *1 The GHG Protocol requires businesses to disclose their greenhouse gas emissions according to the following categories
  •    Scope 1: Direct GHG emissions of a company, including emissions from fuel consumption. E.g. CO2 emissions from the use of gasoline for company vehicles.
  •    Scope 2: Indirect GHG emissions from the generation of purchased electricity and heating. E.g. CO2 emissions from the use of electricity by offices.
  •    Scope 3: GHG emissions occurring in the supply chain. E.g. CO2 emissions generated during the use of products sold.
  • *2 Science Based Targets. These targets are set for companies to achieve reduction goals in-line with scientific knowledge to limit the raising average temperature around the world to 2°C or less.
Scope 1 and Scope 2 CO2 Emission Trendssymbol for Independent assurance
Scope 1 and Scope 2 CO2 Emission Trends
Scope 1 and 2 Breakdown by Business (FY 2016)
Scope 1 and 2 Breakdown by Business (FY 2016)
FY 2016 Scope 1 and 2 CO2 Emissions Breakdown
Domestic and Overseas Office Domestic Non-Office Overseas Non-Office Total
Scope 1 20 kt-CO2 140 kt-CO2 25 kt-CO2 185 kt-CO2
Scope 2 13 kt-CO2 11 kt-CO2 128 kt-CO2 151 kt-CO2
Total 33 kt-CO2 151 kt-CO2 153 kt-CO2 336 kt-CO2
Scope 3 Three-Year Data of CO2 Emissions by Categorysymbol for Independent assurance
(t-CO2)
Category Boundary of Emissions included in the Category FY 2014 FY 2015 FY 2016
1 Purchased products and services Emissions from upstream of purchased products during new home construction and building material business 1,187,600 1,227,877
2 Capital goods Emissions from upstream of purchased equipment 42,323 61,411
3 Fuels and energy-related activities excluded from Scope 1 and 2 Emissions from purchased fuels, electricity, heat capacity, and water, as well as transport of purchased fuels 4,393 8,518*2
4 Transport and deliver
(Upstream)
Emissions from transport of timber from logging sites, purchased items in building materials, raw materials to plants and products to clients in the timber production business, and transport by sea in the building material business 11,604

Estimate covering Sumitomo Forestry and Group companies in Timber Production Business

264,736

Estimate for marine transport added to the FY2014 figure

268,114
5 Waste generated through businesses Emissions from waste treatment and its transport 10,839 9,682
6 Business trips Emissions related to business trips of employees such as use of public transportation and accommodation 1,393 1,429
7 Employee commute Emissions from employee commuting 1,476 3,122*3
8 Leased property
(Upstream)
(Emissions from use of upstream leased property such as office buildings, heavy machinery, vehicles, and facilities are included in Scope 1 or 2)
9 Transport and deliver
(Downstream)
Emissions from transport of sold products in Timber Production Business (for wood yard pick up) 11,717 6,781*2
10 Processing of sold products Emissions from processing of raw wood into plywood as well as of sold precut processing of sold lumber 51,733 50,410
11 Use of purchased products Emissions from sold homes while in use (for sixty years) 2,163,805 2,015,591 2,054,110
12 Disposal of sold products Emissions from demolition and disposal of homes sold by the Company 53,416

(Demolition + disposal (landfill, incineration, and recycling) is estimated)

48,435 42,279
13 Leased property
(Downstream)
(Tenants must belong to the Group and the figures are included in Scope 1 and 2 of the Group)
14 Franchised (excluded)
15 Investment Emissions from the investees (based on the Company's proportional share) 94,671 91,279
  • *1 Above data include domestic businesses only. *All categories other than Category 4, 11, and 12 are disclosed since fiscal 2015. Some of the numerical values that are used are data such as that from the database published by the Ministry of the Environment. The data with greater accuracy will be obtained progressively in the future by requesting the provision of primary data.
  • *2 The estimated transport distance changes as follows as of fiscal 2016. City: Revised from 50 km to 20 km; Prefecture: Did not change from 100 km; Between Prefectures: Revised from 500 km to 300 km
  • *3 Train and bus commuting was calculated in fiscal 2015 and commuting by motor vehicle was added as of fiscal 2016.
FY2016 Total Greenhouse Gas Emissions Accrued From Corporate Activities
FY2016 Total Greenhouse Gas Emissions Accrued From Corporate Activities
Emission Trends in Scope 1, 2, and 3
Emission Trends in Scope 1, 2, and 3
  • * Scope 3 has expanded the range of calculation from three conventional categories to 15 categories since fiscal 2015.

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CSR Report2017