CSR Information

Practicing Sustainable Forest Management

The medium to long-term demand for timber is expected to grow worldwide due to the needs for housing construction resulting from growing populations and economic growth in developing nations as well as demands or various energy resources.
More than half of the wood resource products throughout the world today are supplied from natural forests and increasing the number of sustainable plantation forests is vital to respond to this growing demand.
The Sumitomo Forestry Group is expanding its plantation forest operations by passing down a sustainable forestry philosophy to continue to utilize wood while planting trees and cultivating forests with its roots firmly founded in the forest management of the Besshi Copper Mine where the Group began. Currently, the Group owns and manages approximately 270,000 hectares of sustainable forests in and outside of Japan.

Contributing to Regional Growth by Cultivating and Managing Forests

Sustainable forests are forests managed in a way that allows the diverse needs for timber to be lastingly satisfied by maintaining a healthy ecosystem throughout the forest while receiving benefit of the timber it provides. The Sumitomo Forestry Group always recognizes sustainability from an environmental perspective in a cycle that starts with planting, cultivation, harvest, use, and back to planting. We hope this will contribute to the development of regions both economically and environmentally while preventing the depletion of resources.

Forest Management and Timber Usage

Forest Management and Timber Usage

Acquiring New Zealand Forest

The Sumitomo Forestry Group acquired approximately 30,000 hectares of forest assets in New Zealand in June 2016.

The forest assets gained from this acquisition are Monterey pine plantation forest located in Nelson, New Zealand. Monterey pine is a type of tree that offers a stable supply of timber thanks to a growth rate that has a 25 year cycle to harvest in addition to price competitiveness while being highly homogeneous with versatility. These forest assets are forecast to provide a stable revenue stream over the long term while also offering sustainable resources that can be used indefinitely through planned forestation.

The Monterey pines cultivated in the forest obtained in this acquisition will be processed locally to be used as construction timber and interior materials of housing both in Japan and overseas. It is estimated to bring in sales of approximately four billion yen a year. In addition, these resources will be exported to countries around the world where expected to have high demand such as China, India with a significant increase in population, and Japan through the distribution network of the Sumitomo Forestry Group.

The Group considers the coexistence with local citizens and contributions to local communities as indispensable to sustainable forest management. We will promote management in these forests as an ongoing business able to contribute to society while building cooperative relationships with the people in the region such as the Ngati Koata Trust*.

  • * Trust that manages assets such as the land returned to the Maori people (the indigenous people of New Zealand) by the New Zealand government
Forests gained in this acquisition

Acquiring Forest Stewardship Council (FSC) Forest Certifications in Indonesia

Koperasi Bromo Mandiri KTI (KBM-KTI) reforestation cooperative supported by Indonesian Group company Kutai Timber Indonesia (KTI) acquired the FSC-FM certification for 206 hectors of forest in January 2017.

KTI also began reforestation with fast-growing trees such as Falcata (Albizia falcataria) in 1999. With the system of "social forestry", KTI has aimed to support the environment, community and economy by distributing seedlings to local residents for free to plant on the lands they own and promises to purchase timber when the trees are mature. KBM-KTI was established with the support of the local community in December 2015. The company has striven to build systems that include sustainable forest management programs, legal compliance and environmental preservation together with the local community. We also are taking advantage of the know-how accumulated in reforestation over many years with local communities in the acquisition of this certification.

KTI will strive to expand the manufacture and sales of products with high environmental value by expanding the area of certified forests. Only KTI can provide a stable supply of FSC-FM certificated materials in Indonesia made up primarily of the Indonesian Falcata tree species and we expect greater competitive strength.

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CSR Report2017