HIGH LIGHT 04 Responsible Timber Procurement Promoting Legal and Sustainable Timber and Building Material Plantation timber and Falcata materials procured from Java Island

Forest depletion has become a global-scale social challenge. Forests are depleting around the world by illegal logging and conversion to farmlands. Procuring timber from sustainable forests are material issue for us as our core businesses include distribution of timber and construction of wooden housings. We conduct due diligence of timber procurement based on the Sumitomo Group Procurement Policy to provide sustainable timber while complying with regulations. In response to the enforcement of the Clean Wood Act in 2017, Timber & Building Materials Division registered as Type 1 Timber-related Operator in November 2017.


Example: SDG targets 15.2

By 2020, promote the implementation of sustainable management of all types of forests, halt deforestation, restore degraded forests and substantially increase afforestation and reforestation globally.

Sumitomo Forestry's contribution in achieving the goal

  • Responsible procurement activities based on the Sumitomo Group Procurement Policy
  • Confirming and managing legal compliance in procuring timber
  • Encouraging use of Forest Certification Systems
  • Promoting reforestation and other forest management

To ensure legality and sustainability and improve quality
Initiatives in Indonesia

Indonesia is an important timber and building material supplier for the Sumitomo Forestry Group. Sistem Verifikasi Legalitas Kayu (SVLK) certification system* is being used throughout the supply chain from forest management, harvest, distribution, processing, and export to record and strictly manage every single timber.

The Sumitomo Forestry ensures each timber is managed following the SVLK certification by scanning the barcode on them and checking the certification of their legal compliance.

We are also implementing our own measures on top of the strict system enforced by the Indonesian government. Our employee in charge follows the distribution route until the origin of the sample timber by visiting the actual site to confirm that there are no discrepancies with the management records and documents.

* Indonesia enforces legal compliance certification system for timber called SVLK. This certification and related documents ensure the legal compliance of timber products in Indonesia.

Collaboration with Local Cooperative Association

We are striving to create a sustainable management system for plantation forests in partnership between PT. Kutai Timber Indonesia (KTI), our subsidiary in Indonesia, and various local plantation forest cooperative associations to secure and increase the amount of timber procured from sustainable forest.

Since 2008, some associations began to acquire Forest Stewardship Council (FSC) certification and sustainable forest management is becoming more popular, which in turn contributing to nurture local industry.

Initiative at Plywood Manufacturing Plants

We explain our procurement policy to the owners of the plywood manufacturing plants when evaluating new suppliers. We also conduct questionnaire surveys and in-factory surveys to check sustainable aspects such as quality and labor conditions.

In addition, we are conducting regular audit for existing business partners to provide quality and safety management guides and check their work environment.


Disseminating the Procurement Policy Through Building Trust with the Local Partners.

When I was stationed in Indonesia I was determined not to purchase timber that I cannot check with my own eyes and to deliver safe, reliable, high quality products, when conducting traceability surveys of procuring timber and periodic plywood manufacturing plant surveys.

Therefore, it is very important to build trust with local partners and manufacturing plants and raise their awareness and understanding towards our procurement policy and quality to implement our standards. However, it was not that simple.

After returning to Japan, I am striving to further raise awareness about the procurement policy and standards within the company while also increasing the added value of product that use timber that are confirmed to be legally compliant and sustainable.

International Marketing Department, Timber & Building Materials Division Panel Group Team Manager Daigoro Munakata

Daigoro Munakata
Team Manager
International Marketing Department,
Timber & Building Materials Division
Panel Group


Promotion of Responsible Procurement in Housing and Construction Business
Initiative in Construction Materials Development Department

The Sumitomo Forestry Group is promoting responsible procurement based on the Sumitomo Group Procurement Policy in the Housing and Construction departments as well. Major structural members and other materials used for housing construction are procured by the Timber and Building Materials Division and processed in designated plants to ensure traceability of their legality and sustainability. Legal compliance of other wooden materials were confirmed by documents and other materials provided by suppliers that certify the timber is harvested complying with regulations. Furthermore, we responded to the Act on Promotion of Use and Distribution of Legally-Harvested Wood and Wood Products (Clean Wood Act) enforced in May 2017, and registered as Type 2 Timber-related Operator in March 2018.

In addition to wooden materials, there are numerous materials used for housing construction, such as housing systems and fixtures, interior materials, and etc. Construction Materials Development Department convenes a supplier evaluation meeting three times a year to evaluate suppliers of wooden and other materials. The evaluation not only look at quality and costs, but also includes environmental and social aspects. Results of the evaluations are shared during the meeting and requests for improvement are sent to the supplier if any issues were found. Requests are followed up until improvement is confirmed.

Supplier evaluation meeting.

Supplier evaluation meeting.

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