CSR Information

Examples of Overseas Community Development and
Regional Contribution Activities

Contributing to Communities Where Sumitomo Forestry Operates

The Sumitomo Forestry Group aims to contribute to sustainable local development through its operations. When starting new businesses or expanding its overseas business sites, the Group's policy is to consider the environment, revitalize local economies and promote employment and thereby operate in harmony with local communities.

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Activities Which Contribute to Local Communities in Indonesia

Support for Children Through the KTI Educational Foundation

PT. Kutai Timber Indonesia (KTI) founded the KTI Educational Foundation in 2000 to commemorate its 30th anniversary with the purpose of improving the livelihood of people in Indonesia through education as well as engageing in social activities. This foundation primarily provides support for academic supplies and uniforms at elementary and junior high schools to impoverished children in Probolinggo in the East Java province where a Sumitomo Forestry Group plant is located. In fiscal 2016, the foundation provided support for academic supplies to 30 children as well as financial support to children with disabilities.

Children that received desks and other items donated by the KTI Educational Foundation

Children that received desks and other items donated by the KTI Educational Foundation

Community Development through Project EARTH Initiatives

Sumitomo Forestry conducts Project EARTH as an effort to offset the carbon dioxide emitted in processes from the harvest of primary building materials to transport, fabrication, and building of detached houses in Japan by planting in degraded forests and on unstable agricultural land in Indonesia.

Since 2009, the project also encompassed activities leading to enhanced regional infrastructure, such as the preparation of roads necessary for the reforestation work, thereby contributing to improvement of the livelihoods of residents. The project also regularly donates study tools to local elementary schools and kindergartens. Sumitomo Forestry also makes regular donations such as academic supplies to kindergartens and elementary schools.

In the future, the project will manage plantation land such as planting, cultivation and fire prevention measures, develop seedbeds in locations seedlings are distributed, and continue to support reforestation through local communities who have participated.

Kindergarten at the town of Supit Ulan, which has commenced reforestation

Kindergarten at the town of Supit Ulan, which has commenced reforestation

Seven-year old balsa trees in Supit Ulan

Seven-year old balsa trees in Supit Ulan

Contributing to the Community through Free Seedling Distribution and Support for
Infrastructure Provision

PT. Rimba Partikel Indonesia, which conducts the manufacture and sales of particle board, distributes free seedlings to local residents and purchases mature trees to use as raw material, which helps the community economically and in terms of greening. In addition, the company continues to support mosque repair work and in road surfacing.

Donation of saplings to the local Kendal Regency

Donation of saplings to the local Kendal Regency

Respect for Traditional Cultures at Overseas Plantations

The Sumitomo Forestry Group entered into an advisory agreement with the International Finance Corporation (IFC), the World Bank's group institute, related the Indonesian plantation forest operations in 2012. We are conducting surveys on business land together with the IFC based on the concepts of High Conservation Value Forests (HCVF) to not only persevere rare flora and fauna as well as the ecosystem, but also in an effort to conserve the forests important to the traditional and cultural identity of the local community.

Village meeting

Village meeting

Contributing to Technical Development and Reforestation for Sustainable
Peatland Use

Our plantation forest operations conducted in Indonesia’s West Kalimantan Barat strive to develop sustainable reforestation techniques in degraded forests on peatlands. Peatlands that accumulate a large amount of carbon dioxide result in large-scale fires in addition to drying out and breaking down the peat buried in the ground while generating carbon dioxide emissions. Therefore, we have been conducting technical development able to sustain a fixed water level in water routes based on a massive amount of accumulated data to prevent the land from drying out throughout the year. These results have been announced at relevant government agencies, universities and other institutes and some aspects have even been adopted as new policy measures. In addition, we are also striving to popularize techniques with a low environmental impact by actively releasing technical overviews. The technology we have developed also has the potential to be utilized in reforestation of areas devastated by large-scale fires.

Land for plantation forest operations designed based on detailed data

Land for plantation forest operations designed based on detailed data

Monitoring the water level in peatlands

Monitoring the water level in peatlands

Provision of Infrastructure and Building a Primary School at Business Site

PT. Mayangkara Tanaman Industri (MTI), a large-scale plantation business operator in Indonesia, views sustainable development of local communities as a vital managerial challenge, and thereby, undertaking community services that meet the needs of local residents in the areas of education, medicine and hygiene, infrastructure development, agriculture, and livelihood enhancement.

Since fiscal 2015, the main building of an elementary school was built in the neighborhood of the Group's operating area, and the support for volunteer teachers at the school has begun. Additionally, to prevent outbreaks of forest fires which have risk of destroying the foundation of community livelihoods and the natural environment, boards to inform people about the risk of fire were put up in the community, and in the meantime, fire extinguishing training was carried out with the local residents.

Support for stationary at elementary schools in operating areas

Support for stationary at elementary schools in operating areas

Fire risk board put up at a village

Fire risk board put up at a village

Exhibition as Part of a Green Forestry Expo in Indonesia

In May 2016, seven Sumitomo Forestry Group companies* based in Indonesia collaborated to exhibit at the IndoGreen Forestry Expo. They were awarded third prize in the private industry category of a competition for exhibitors.

At the exhibition, panels of photographs and product samples were used to introduce visitors to how the Group is developing a sustainable forestry industry in Indonesia of “harvesting, using and replanting,” which contributes to the environment and society. Topics included social contribution through afforestation, manufacturing business and zero emission efforts.

Visitors to the exhibition were given seedlings of Acacia and fruit trees. In addition, local children and government agencies such as representatives from the Indonesia Environment and Forestry Ministry were given the opportunity to feel the timber for themselves, in the form of blocks made of balsa. This Expo became an invaluable place to nurture interest in the importance of forests and wood with the Sumitomo Forestry Group.

  • * Seven companies: PT. Kutai Timber Indonesia, Pt. Rimba Partikel Indonesia, Sumitomo Forestry Indonesia, PT. Wana Subur Lestari, PT. Mayangkara Tanaman Industri, AST Indonesia and Sinar Rimba Pasifik
Booth bustling with many visitors

Booth bustling with many visitors

Children playing with balsa blocks at the exhibition

Children playing with balsa blocks at the exhibition

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Building Social Infrastructure in Papua New Guinea

Open Bay Timber Ltd. (OBT) in Papua New Guinea has been operating plantation forest since 1984 and it contributes greatly to the economic development of each region of Kaboku, Mokolkol, Alienande, and Mevelo districts. In April 2007, OBT became a Group company of Sumitomo Forestry to further healthy expansion and effective use of reforestation timber resources.

OBT also operates hospitals and super markets for their employees and local residents to use because the preparation of social infrastructure is insufficient in Papua New Guinea. In neighboring villages, OBT nurses periodically visit neighboring villages to perform infant health checkups and provide advice to the sick.

In fiscal 2016, efforts were undertaken to provide resources to build church facilities and raise awareness about the prevention of AIDS in local residents from neighboring villages. Furthermore, company-owned four-wheel drive vehicle was arranged as dedicated clinic vehicles to transport patients to larger hospitals.

Four-wheel drive vehicle to transport patients available at the clinic

Four-wheel drive vehicle to transport patients available at the clinic

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Support for Children’s Hospitals in Australia

The Henley Properties Group builds and sells detached and multi-unit housing and spec homes in Australia and the United States. The Group’s social contribution activities include the Good Friday Charity Auction, whereby the auctioning of a spec home, built with residential land developer, materials supplier and other business partner cooperation, raises money which is donated to children’s hospitals and other facilities.

Several hundred business partners from the provision of land to design, estimation, material manufacturing, procurement, and labor management have participated in these activities. Since these efforts began in 1993, more than 13 million Australian dollars in total donations have been provided through the auction of 37 houses to be used for the medical costs of children suffering from intractable diseases.

The 23rd auction in fiscal 2016 was held in March in Victoria, Australia. The two-story house built in Mickleham, Melbourne reached a successful bid of 663,000 Australian dollars.

Detached house auction

Detached house auction

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Cooperating in Local Rescue Activities

Tasman Pine Forest (TPF) in New Zealand became a sponsor of the Nelson Marlborough Rescue Helicopter Trust, which operates rescue helicopters, and it plans to donate 50,000 New Zealand dollars in 2017.

Rescue helicopters are deployed roughly 400 times a year for natural disasters that occur in the region and for leisure accidents.

The Tasman Pine logo is scheduled to be posted on the helicopter.

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Support for the Next Generation in the United States Through Joint Efforts with Local Residents

The Canyon Creek Cabinet Company, which manufactures and sells wooden cabinets in the United States, continually makes contributions to the region from providing offcuts of timber produced in manufacturing products to local toy makers to make donations of wooden toys and puzzles to child protection facilities and children's hospitals.

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Construction of Monastic Schools in Myanmar

Sumitomo Forestry is involved in the Myanmar Monastic School Support Team, a body that was established to support the construction of monastic school-style community schools in Myanmar. Activities which began in 2014 have completed three monastic-style schools as of November 2016 thanks to the donations of companies and individuals who see the benefit. These schools were only simple schoolhouses before they were rebuilt with an environment that prevented classes from continuing on days there was heavy rain, especially in the rainy season. At the completion of a school, the donor companies held an opening ceremony with participants from advocating companies and an opportunity to engage with the local children.

Moving forward, the Myanmar Monastic School Support Team will continue to provide support with a goal of building one school per year.

School before rebuilding

School before rebuilding

Exterior of Monastic School after rebuilding

Exterior of Monastic School after rebuilding

Construction of Monastic Schools by Myanmar Monastic School Support Team, in Number
Monastic School Completion Construction Region Number of Students Sponsors
Wutt Kyway Taw Pyay Monastery School End of October, 2014 Mingaladon Township, Yangon City Approx. 260 18 companies, 4 individuals
Pyin Nyar Theingi Nun School End of November, 2015 Mingaladon Township, Yangon City Approx. 120 18 companies, 4 individuals
Myittar Yaung Chi Nun School November 2016 South Dagon Township, Yangon City Approx. 180 19 companies, 5 individuals

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Support and Cooperation in Nepal Manaslu Forest Restoration Project with Planting Technologies

Sumitomo Forestry provides tree-planting technological support and cooperation in the Manaslu Forest Restoration Project in Nepal led by the NPO Peak Aid, where alpinist Ken Noguchi serves as a representative.

Manaslu is one of the mountains in the Himalayas and its peak reaches 8,000 meters up in the air. The mountain once had virgin forests with rich vegetation and soil; nonetheless, recent population growth in the villages and deregulated logging have depredated the forests. The degraded forest system has resulted in increased frequency of landslide and adversely affecting lives of the villagers.

Sumitomo Forestry, therefore, has begun providing advice from the technical aspect by sending experts of nurturing seedlings and forests to the project site. In fiscal 2016, we gave advice on seedlings production, proposed sites for reforestation, and reforestation methods locally in the second year of this three-year activity.

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CSR Report2017