Corporate Social Responsibility Information

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

Reducing CO2 Emissions from Offices

The Sumitomo Forestry Group defines "the office category” as anything but non-office category in consolidated companies inside and outside Japan. At offices, CO2 emissions in fiscal 2015 were 33,055 t-CO2, 6.7% and 3.9% reductions compared to the base year (fiscal 2013) and the previous year, respectively.

In addition to proceeding to introduce fuel-efficient vehicles, 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). Of all the newly registered Company-owned vehicles during fiscal 2015, 86% was fuel-efficient, and in result,CO2 emissions attributed by gasoline-engine vehicles decreased by 7.6% compared to the previous fiscal year.

Environmentally conscious lighting

Environmentally conscious lighting

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 eco-drive programs to raise awareness among employees.

CSR Mid-Term Plan

Reduce total CO2 emissions from all domestic and overseas consolidated companies by 7% of the base year by fiscal 2020.

In fiscal 2015, the total amount of CO2 emissions in the office category dropped by 6.7% to 33,055 t-CO2. The Company will start the eco-drive curriculum in addition to ongoing safe-drive training provided by Housing Division with the aim to lower gasoline-derived CO2 emissions towards the following year’s target.

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Office Emissions(t-CO2
FY FY2013
(Base Year)
FY2014
(Performance)
FY2015
(Performance)
FY2015
(Target)
FY2016
(Target)
FY2020
(Target)
Total CO2 Emissions 35,440 t-CO2 34,404 t-CO2 33,055 t-CO2 34,345 t-CO2 33,746 t-CO2 32,859 t-CO2
Difference to Base Year
Percent Change
- 2.9% reduction 6.7% reduction 3.1% reduction 4.5% reduction 7.0% reduction
  • *Figures are aligned with organizations in fiscal 2013 as the base year.

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Non-Office CO2 Emission Reduction

To address CO2 emissions collectively, the Group set manufacturing plants of Sumitomo Forestry Crest and Sumirin Agro Products, Tsukuba Research Institute, the Metropolitan Resource Center, Filcare, Kono Kita 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 CanyonCreek as overseas non-office category constituents with their respective reduction targets.

CSR Mid-Term Plan

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

In fiscal 2015, the domestic category progressed in decreasing CO2 emission by increasing efficiencies in production and operation of manufacturing plants as means to achieve the targets whereas the overseas category addresses offset CO2 emissions through alternative electricity tariffs or purchase methods as well as new measures as for plants under influence of facility expansion along with establishment of a new business.


Major Non-Office CO2 Emission Reduction Performance and Targets
Company FY2014 (Performance) FY2015 (Performance) FY2015 (Target) FY2016 (Target)
Sumitomo Forestry Crest Co., Ltd. 6.4% increase 26.1% reduction 26.0% reduction 9.5% reduction
Sumirin Agro-Products Co., Ltd. 33.2% reduction 18.6% reduction 11.4% reduction 2.7% increase
PT. Rimba Partikel Indonesia (RPI) 19.4% increase 53.1% increase 12.8% reduction 18.3% reduction
PT. AST Indonesia (ASTI) 13.6% increase 7.3% increase 2.6% reduction 0.9% increase
PT. Kutai Timber Indonesia (KTI) 6.0% increase 5.9% increase 1.4% reduction 1.9% reduction
Alpine MDF Industries (ALPINE) 10.5% reduction 5.5% increase 4.5% reduction 4.6% increase
Nelson Pine Industries (NPIL) 17.1% increase 5.2% reduction 2.4% increase 0.4% reduction
Vina Eco Board Co., Ltd. (VECO) 5.6% reduction 5.7% reduction 0.9% increase 2.2% increase
  • *Increases and decreases are in reference to respective previous years.

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Reducing CO2 Emissions from Manufacturing Companies outside Japan

Reducing CO2 Emissions from Transportation

Under the revised Act on the Rational Use of Energy in Japan, consigners 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 Co., Ltd. fall under the category of “specified consigner” (annual freight transportation volume is 30 million ton-kilometers1 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 consumption2 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 2015, Sumitomo Forestry's per-unit energy consumption was 99.6% compared to the previous year and Sumitomo Forestry Crest's was 97.4%.
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. Freight transportation volume (ton-kilometers) = freight weight (tons) × distance travelled (km))
  • *2. 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 Per-Unit Energy Consumption
(FY2015 Performance)
Energy Use (Crude Oil Equivalent) CO2Emission Energy Per Unit Consumption
Sumitomo Forestry Co., Ltd. 2,602kL 6,959t-CO2 0.00195kL/m3(Ratio to Previous FY: 100.4%)
Sumitomo Forestry Crest Co., Ltd. 2,242kL 5,953t-CO2 0.0000613kL/ 1,000 Yen (Ratio to Previous FY: 99.9%)

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Establishment of an Efficient Delivery

In 2007, Sumitomo Forestry made improvements to the system it uses to deliver materials for Sumitomo Forestry Home houses respectively from the manufacturer to individual construction sites. Seeking to reduce the amount of CO2 emitted during transportation, the Company established a system whereby materials from multiple manufacturers would first be gathered at relay centers, of which there are 26 nationwide, and then delivered together in mixed loads. In April 2010, the Company established Home Eco Logistics Co., Ltd., leveraging the distribution efficiency know-how it had acquired over the years. Home Eco Logistics takes on logistics operations for the Sumitomo Forestry Group's housing business and also actively puts forward proposals for efficient logistics operations to material manufacturers, housing manufacturers, housing construction companies and building material distributors. As of March 2016, Home Eco Logistics provided logistics operations to more than 30 companies. The company will continue to actively put forward proposals aiming for standardization of logistics functions in the industry, while at the same time contributing to further reductions in CO2 emissions through improved efficiencies in transportation.

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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. The Group plans to gradually expand what is included in the calculation for Scope 3, that is, CO2 emissions occurring in the supply chain.

  • *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 including CH4 and N2O. 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.
Scope 1 and Scope 2 CO2 Emission Trendssymbol for third party assurance
Scope 1 and Scope 2 CO<sub>2</sub> Emission Trends
  • *The Sumitomo Forestry Group offsets its CO2 emissions from model homes, which were 1,590 tons in FY2010, 2,542 tons in FY2011 and 3,056 tons in FY2012 and 2,835 tons in FY2013, using forest sink credits issued under the Offset Credit (J-VER) Scheme.
Breakdown of Scope 1 and 2 CO2 Emissions
Domestic and Overseas Office Domestic Non-Office Overseas Non-Office Total
Scope 1 20 thousand t-CO2 3 thousand t-CO2 26 thousand t-CO2 49 thousand t-CO2
Scope 2 13 thousand t-CO2 9 thousand t-CO2 124 thousand t-CO2 146 thousand t-CO2
Scope 3 Three-Year Data of CO2 Emissions by Category (Fiscal 2015)symbol for third party assurance
(t-CO2)
Category Boundary of Emissions included in the Category FY 2013 FY 2014 FY 2015
1 Purchased products and services Emissions from upstream of purchased products during new home construction and building material business 1,187,600
2 Capital goods Emissions from upstream of purchased facilities 42,323
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
4 Transport and delivery (upstream) Emissions from transport of timber from logging sites, purchased items in building materials, raw materials to plants and products to clients in timber production business, and imports to overseas destinations in building material business 5,751

Estimate covering only Sumitomo Forestry –the parent company

11,604

Estimate covering Sumitomo Forestry and Group companies in Timber Production Business

264,736

Estimate for marine transport added to the FY2014 figure

5 Waste generated through businesses Emissions from waste treatment and its transport 10,839
6 Business trips Emissions related to business trips of employees such as use of public transportation and accommodation 1,393
7 Employee commute Emissions from employee commute by train and bus 1,476
8 Leased property (Upstream) (Emissions from use of upstream leased property such as office building, 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
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
11 Use of purchased products Emissions from sold homes while in use (for sixty years) 2,072,489 2,163,805 2,015,591
12 Disposal of sold products Emissions from demolition and disposal of homes sold by the Company 29,641

(Demolition + disposal (landfill only) is estimated)

53,416

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

48,435
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
  • *All categories other than Category 4, 11, and 12 are disclosed since FY2015.
  • *Above data include domestic businesses only.
  • *Per unit emissions are referred to following data base:
  • ・Database of GHG emission factor for Calculating an Organization’s Greenhouse Gas Emissions through the Supply Chain, Ver. 2.2, Ministry of Environment and Ministry of Economy, Trade and Industry
  • ・Carbon Footprint (CFP) Communication Program, Basic Database Ver. 1.01 (Japan data) published by the Japan Environmental Management Association for Industry (JEMAI)
  • ・Manual for Calculating and Reporting Greenhouse Gas Emissions (Ver. 4.1), Ministry of the Environment and Ministry of Economy, Trade and Industry
  • The data with greater accuracy will be obtained progressively in the future by requesting the provision of primary data from business partners if possible.
FY2015 Total Greenhouse Gas Emissions Accrued From Corporate Activities
FY2015 Total Greenhouse Gas Emissions Accrued From Corporate Activities
Emission Trends in Scope 1, 2, and 3*
Emission Trends in Scope 1, 2, and 3
  • *Since FY2015, the coverage of estimation for Scope 3 has expanded to fifteen categories from three categories.

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CSR Report 2016