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 engaging 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 2018, the foundation provided support for supplies to elementary schools as well as IDR 12,715,000 (approx. 100,000 yen) in financial support to children.

KTI Educational Foundation provided environmental education and donated garbage bags to an elementary school

KTI Educational Foundation provided environmental education and donated garbage bags to an elementary school

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 delivered from April 2009 to March 2017 by planting in Indonesia. New reforestation efforts have already been completed and the work has currently migrated to cultivation, harvest and subsequent reforestation.

The project also encompassed activities leading to enhanced regional infrastructure through efforts such as the preparation of roads necessary for the reforestation work, thereby contributing to improvement of the livelihoods of residents. Sumitomo Forestry also makes donations such as academic supplies to kindergartens and elementary schools in addition to setting up public restrooms in villages.

Following the lead of KTI which implemented the project, we have provided seedlings to local residents and guarantee purchase of plantation timber that is cultivated at a fair price to contribute to creating a revenue source for the local people while taking responsibility for one aspect of sustainable plantation activities.

Public Bathrooms Set Up in Village

Public Bathrooms Set Up in Village

Harvesting and Transport of Timber

Harvesting and Transport of Timber

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 guarantees the purchase of the timber at a fair market price from the seedlings that are cultivated, 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 seedlings to the local Kendal Regency

Donation of seedlings to the local Kendal Regency

Respect for Local Tradition and Culture at Overseas Plantations

The plantation forest operations in Indonesia communicate with the local residents and associations to gain a deep understanding of the local traditions and culture and conduct safety festivals together with the local people when starting operations in accordance with those traditions. Sumitomo Forestry also engages in efforts to respect the traditions and cultures of local communities, such as capital support for traditional events held by local residents.

Village meeting

Village meeting

Technical Development for Sustainable Peatland Use

Sumitomo Forestry strives to develop forestry technologies together with the region through large-scale plantation operations in West Kalimantan, Indonesia.

Building Infrastructure and Providing Basic Educational and Medical Support in Neighboring Business Regions

PT. Mayangkara Tanaman Industri (MTI), a large-scale plantation forest 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 through education, medicine and hygiene, infrastructure development, agriculture, and livelihood enhancement.

Up unitl now, a water purifying plant was setup in villages in business regions to supply safe water for daily life to residents. In addition, Sumitomo Forestry works to provide basic educational support by building local elementary schools and deploying teachers where facilities and instructors are lacking in addition to medical support which includes free examinations for neighboring residents.

In fiscal 2018, adoption of flood disaster prevention in neighboring communities began with the water level management technology developed through the Sumitomo Forestry business. Infrastructure that is easy to maintenance and able to effectively adjust water levels is offered to neighboring communities.

Support for stationary at elementary schools in operating areas

Support for stationary at elementary schools in operating areas

Educational Environment at the Elementary School

Educational Environment at the Elementary School

Ladakh Water Level Management Infrastructure

Ladakh Water Level Management Infrastructure

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Building Social Infrastructure in Papua New Guinea

Open Bay Timber Ltd. (OBT) in Papua New Guinea has been operating a plantation forest since 1984 and it contributes greatly to the economic development of the region. 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 its own clinics 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 as well as conduct educational activities. Furthermore, a dedicated clinic vehicle was arranged to transport patients to larger hospitals.

Full View of Open Bay Clinic

Full View of Open Bay Clinic

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

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

As support for the economic activities of local residents, OBT builds a public sales space with a roof that is open to the community so that anyone can sell their own fruits and vegetables after establishing company-owned land facing the coast. The building which had collapsed due to strong winds and rains was also rebuilt. OBT also plans to build three additional buildings in the future to respond to the strong requests of nearby residents who fill this sales space.

Local Community in the Newly Built Community Market Place
Local Community in the Newly Built Community Market Place

Local Community in the Newly Built Community Market Place

A large-scale charity medical event was also held at the Open Bay Clinic built and operated by OBT to offer local citizens a place to be examined properly for those that cannot visit major town to receive such examinations with the cooperation of the health department of the province. The medical staff of over 40 professionals brought together from around the worldexamined for diagnosis for approximately 500 people over the three days of this event.

Diagnosing and Treating Adults and Children Alike

Diagnosing and Treating Adults and Children Alike

Hygiene Guidance for Children

Hygiene Guidance for Children

Stand-by generators were newly installed in the Open Bay Clinic in anticipation of power-outages in the evening when the main generators stop. These generators have been able to provide support in case of emergencies or childbirth in the middle of the night.

OBT employs full-time health workers day and night at the Open Bay Clinic to provide general medical care, support childbirth and pharmaceutical needs, accept patients into the hospital, and transfer patients with serious medical concerns to major hospitals by land and sea.

The patients receiving care are not only employees and their families but also many people who travel from far away for treatment. Therefore, the Open Bay Medical Clinic contributes greatly to the local community as the most advanced medical clinic within a 60 km radius from its grounds in a country where medical facilities are lacking.

Books were donated to the Open Bay Elementary School attended by the local children (elementary, junior, and senior high students) in addition to the student community classroom (origami experience) that was held.

Junior and Senior High School Students Receiving the Books

Junior and Senior High School Students Receiving the Books

Elementary School Students Showing Off Their Origami Art

Elementary School Students Showing Off Their Origami Art

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Social Contribution Through the Housing Business in Australia and the United States

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 whereby the money raised from the sales of spec homes, built with cooperation of a housing lot developer, materials supplier and other business partners, is donated to children’s hospitals and other facilities.

The Henley Properties Group held the Good Friday Charity Auction in April 2019, which was the 26th year of the event. Several hundred business partners from the provision of land to design, estimation, material manufacturing, procurement, and labor management have participated in these activities. The Henley Properties Group donated the entire 761,000 Australian dollars (approx. 63 million yen) earned from the charity auction this year of two-story homes built in Clyde North, a southeastern district of Melbourne, to a children’s hospital. Since these efforts began in 1993, more than 15.4 million Australian dollars (1,271 million yen) in total donations have been provided through the auction to be used for the medical costs of children suffering from intractable diseases.

MainVue Homes has been working to donate proceeds from the building and sale of charity homes since 2015. The charity auction sold a charity home built in Tehaleh located in the southern area of Seattle, Washington in 2018 and donated 705,000 US dollars (78 million yen) raised for research into treatment of intractable diseases. This is the second charity home built and sold by MainVue Homes in the United States.

Henley Properties Group detached house auction

Henley Properties Group detached house auction

MainVue Homes charity home

MainVue Homes charity home

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Regional Contribution Activities in New Zealand

Tasman Pine Forests Ltd. (TPF) in New Zealand engages in local contribution activities to bring health and safety to the local community.

In fiscal 2017, TPF donated activity capital as a sponsor to the Nelson Marlborough Rescue Helicopter Trust. This trust is deploying rescue helicopters roughly 500 times a year for natural disasters that occur in the region and for leisure accidents. The TPF logo is posted on the helicopter.

Furthermore, TPF donated the funds to Fire and Emergency New Zealand (FENZ), the fire-fighting organization of New Zealand, for the purchase of a small fire engine to fight forest fires. In New Zealand, TPF worked together with the Rural Fire Network made up of forestry companies and FENZ engaged in forest fire prevention and fire-fighting activities.

In fiscal 2018, TPF donated to the new care hospital wing built at the Nelson Tasman Hospice as New Zealand faces an aging population. The Nelson Tasman Hospice is a charity (non-profit) organization rooted in the community which has been providing hospice care in Nelson since its founding in 1987.

Rescue Helicopter

Rescue Helicopter

Fire Engine

Fire Engine

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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 charity organizations which donate toys to make donations of wooden toys and puzzles to child protection facilities and children's hospitals.

Trains and Other Donated Wooden Toys

Trains and Other Donated Wooden Toys

Local Charity Organization Members Making Toys

Local Charity Organization Members Making Toys

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Construction of Monastic Schools in Myanmar

Sumitomo Forestry is involved in the Myanmar Monastic School Support Team and the secretariat, bodies established to support the construction of monastic school-style community schools in Myanmar. Activities which began in 2014 have completed five monastic-style schools as of January 2019 thanks to the donations of companies and individuals who see the benefit. These schools were small shacks before they were rebuilt but have now transformed into three-story schoolhouses built from steel and concrete.

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.

The milestone of the fifth anniversary of the project this year was captured on video through the use of drones and other methods.

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

Monastic School After Rebuilding and Attendees at the Ceremony

Monastic School After Rebuilding and Attendees at the Ceremony

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
October 2014 Mingaladon Township, Yangon City Approx. 260 18 companies,
4 individuals
Pyin Nyar Theingi
Nun School
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
Shuepi Paremiin Monastery
Elementary and Middle School
March 2018 Aung Myay Tharzan Township, Mandalay Approx. 520 20 companies,
6 individuals
Aung Mingalar
Monastery Elementary and Middle School
January 2019 Pyigyidagun Township, Mandalay 305 19 companies,
6 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 high. Sama village, located at the foot of the mountain, once had virgin forests with rich vegetation and soil; nonetheless, recent population growth in the villages and deregulated logging have deprecated the forests. The degraded forest system has resulted in increased frequency of landslide and adversely affecting lives of the villagers.

Sumitomo Forestry, therefore, has been providing advice from the technical aspect by sending experts of nurturing seedlings and forests to the project site. In fiscal 2018, we gave advice on seedling production, proposed sites for reforestation, and reforestation methods locally and implemented test reforestation with approximately 3,000 trees.

Approx. Two-Year Old Japanese Larch Seedlings Ready for Planting

Approx. Two-Year Old Japanese Larch Seedlings Ready for Planting

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Sustainability Report