CSR Information

Protecting and Utilizing Domestic Forest Resources

Basic Policy of Conserving Domestic Forest Resources

The devastation of timber plantations such as Japanese cedar and cypress farmed cedar and Japanese cypress trees throughout each region of Japan is a concern. The reasons for this devastation include the stagnation of timber value and worsening profitability as well as the inability for proper thinning or other management of the forests. The Government of Japan in order to avert exacerbation of the forest depredation by revitalizing the forestry industry, established a goal to raise Japan’s timber self-efficiency to 50% by 2025.

Sumitomo Forestry Group has acquired SGEC forest certifications* for the Company-owned forests of approximately 46,000 hectares as part of its sustainable forest management practice while using more domestically produced timber in all business areas in order to assist in vitalizing the forestry industry.

  • * Forest certification established by the Sustainable Green Ecosystem Council in 2003

Breakdown of Company-Owned Forests

Breakdown of Company-Owned Forests

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Using More Domestic Timber in Home Productssymbol for Independent assurance

Sumitomo Forestry is working to increase the ratio of domestic timber usage for Sumitomo Forestry Home house through development and incorporation of various component materials. Further into the future, the Company will improve the ratio to achieve the 2020 targets set for each main housing product (construction method).

Percentage of Japanese timber under Multi-Balance Construction Method (FY2016)

71

Percentage of Japanese timber under Big-Frame Construction Method (FY2016)

50

Promoting the Use of Unused Wood Resourcesymbol for Independent assurance

Unused wood resource is leftover timber from thinning and logging or wood residue that are unused due to curves and small size. Wood biomass power plants are operating in each area and the demand for wood biomass is growing following the adoption of the FIT law (Feed-in Tariff for Renewable Energy). By using unused wood resources, we can also expect an effective increase in the value of forests while promoting renewable energy. Sumitomo Forestry Forest Service has set targets for fiscal 2020 with the aim of building an efficient and safe logging system for wood leftover from logging.

Volume of unused wood resource handled from Japanese timber (FY2020 Target)

185kt

Volume of unused wood resource handled from Japanese timber (FY2016)

191kt

Exporting Domestic Timbersymbol for Independent assurance

Although timber consumption in Japan is on the decline, overseas demand for timber is forecasted to grow in emerging countries including China propelled by economic development and population growth. Influenced by such circumstance, Japanese timber exportation is also on the rise in recent years, and thus, the Sumitomo Forestry Group set goals for fiscal 2020 and is entering new overseas market opportunities for domestic timber.

Volume of exported Japanese timber (FY2020 Target)

200 thousand

Export and Sales of Domestic Timber (FY2016)

70 thousand

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Toward the Future

The Sumitomo Group plans to promote the acquisition of SGEC forest certifications when the forest management area expands due to new forest acquisitions in addition to the forests currently owned by the company. We will also contribute to the utilization of forests in Japan by continuing to actively use Japanese timber.

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CSR Report2017