Basic Policy

The Sumitomo Forestry Group formulated the Sumitomo Forestry Group Human Rights Policy in July 2019 and complies with international human rights bills (Universal Declaration of Human Rights and International Covenants on Human Rights), the International Labour Organization (ILO) Core Labour Standards, and the United Nations Guiding Principles on Business and Human Rights. Based on these international standards, the Sumitomo Forestry Group has put forth a commitment to human rights respect and a healthy workplace in its Sumitomo Forestry Group Code of Conduct. In addition, the Code calls for the respect of the human rights of all individuals, including women, children, indigenous people, minorities and other socially vulnerable people and stipulates that there will be no discrimination whatsoever on the basis of race, ethnicity, nationality, gender, religion, ideology, disability, sexual orientation, gender identity or other. The Code also does not permit forced labor or child labor in any form.

Furthermore, the Sumitomo Forestry Group is permeating these policies and conducts proper assessments to ensure this same level of respect by business partners as well. We are also conducting human rights due diligence and respond to human rights risks in an effort to fully grasp and mitigate any risk to human rights.

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Implementation of Due Diligence and Managing Important Risks

Through human rights due diligence, Sumitomo Forestry Group identifies factors that may have a negative impact on human rights and works to prevent or reduce them.

Internal CSR Survey of the Sumitomo Forestry Group

Since fiscal 2012, an Internal CSR Survey is conducted every year at each of the Group companies regarding their CSR initiatives to review and improve the human rights situation. In fiscal 2018, based on the surveys for the major 57 Japanese and overseas Group companies (28 Japanese companies, 29 overseas companies), 44 subsidiaries implement human rights trainings, 40 have functions to handle grievance and 47 implement mitigation plans. For our suppliers, we strive to prevent human right infringements through conducting surveys and face-to-face interviews.

Based on this survey, in fiscal 2018, we did not find any human rights violations.

Respect for Human Rights Through CSR Procurement

Sumitomo Forestry Group is conducting fair and responsible procurement under the Sumitomo Group Procurement Policy which obligates suppliers to protect human rights and basic rights of labor as well as preventing corruption. For procurement of imported materials, specifically, the Group ensures whether rights of workers and local communities in the areas where raw materials of the supplies are procured from, have not been violated; if there is a risk, then whether adequate consideration for these rights during logging is inspected through surveys and on-site inspection to the suppliers. The Group has conducted surveys more than 200 to suppliers in two years as well as engaged in on-site inspection and interviews with any suppliers which measures to mitigate risks was deemed necessary based on the risk categories.

Identifying and Managing Human Rights Risks

In conjunction with the formulation of its Human Rights Policy, Sumitomo Forestry Group has created a risk map to clearly identify important human rights risks affecting stakeholders in the value chain of each of its business divisions.

Each business division identified its important risks as follows: The Environment and Resources Division - “Infringing indigenous or community land rights and managing related laws” as well as “Occupational safety and health management in mountain forests (dangerous work, etc.).” The Timber & Building Materials Division - “Infringing indigenous land rights,” “Occupational safety and health management at factories (fires, dust explosions, etc.),” and “Child labor at timber plantations (including dangerous labor).” The Housing and Construction Division and the Overseas Housing and Real Estate Division - “Labor conditions of migrant workers (forced labor, etc.).”

In addition to risk measures already being undertaken, the Company is working on countermeasures and implementation plans for each stakeholder to further prevent, avoid, lessen or rectify these identified important risks.

Sumitomo Forestry Group Human Rights Impact Analysis Map

Sumitomo Forestry Group Human Rights Impact Analysis Map

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Respect for Human Rights at Overseas Plantations

For timber plantations in Indonesia’s West Kalimantan, the Company signed an advisory agreement with International Finance Corporation (IFC), the World Bank’s group institute in 2012. Sumitomo Forestry conducted inspections of its operational properties with the IFC to examine whether plans for use of commercial land were being implemented properly considering the rights of indigenous people and protection of cultural heritage as well as livelihood of local residents, which are indicators in the High Conservation Values Forests (HCVF) that has drawn great attention in recent years.

Sumitomo Forestry Group held hearings and invited stakeholders (local residents, neighbor corporations, academics, NGOs, and government workers) to conduct forest operations with considerations toward human rights. Hearing was held in 2013 to share the content and result of a survey and hearing held in 2015 to deepen stakeholders understanding about content of the business and environmental considerations prior to harvesting the plantation forest.

In 2018, the Group built a grievance mechanism with the help of the IFC in PT. Wana Subur Lestari (WSL) and PT. Mayangkara Tanaman Industri (MTI). This mechanism provides two routes for grievances. The first allows local residents to share their opinion in writing with WSL or MTI while the second provides WSL and MTI the opportunity to conduct informal visits with local residents to gather feedback. Both of these grievance routes provide a response to local residents within seven business days with the approval of the WSL and MTI management team.

In addition, the Group has begun social surveys as part of the three-year plan with the University of Indonesia around its business zones and neighboring area.

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Human Rights Training

The Sumitomo Forestry Group provides lectures about human rights in its new employee training in Japan. Sumitomo Forestry also incorporates classes about human rights in its training for new general managers. We also require all Group employees with access to the intranet to take the “Work and Human Rights” module in e-learning every year with the intention to promote respect for human rights and a workplace where no discrimination is permitted (completed with a test score of at least 80 points).

In fiscal 2018, 10,605 employees of whom 5,379 and 5,226 belong to the parent company and Group companies, respectively, took the class. The effort in raising human right awareness via e-learning will be continued into the future.

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Prevention of Harassment

Sumitomo Forestry makes its policy on sexual harassment, workplace bullying and maternity harassment clear, having included in its Employment Regulations, under one category of rules to be observed by employees (discipline on the job), a provision prohibiting such harassment as well as disciplinary standards. The Sumitomo Forestry Group Code of Conduct also prohibits all forms of harassment and this is communicated via the internal website and handouts. In addition, awareness within the Company is fostered by providing information with case examples and implementing regular awareness promotion notices, through human rights and ethics training and other activities. Furthermore, the Group distributes an email to every employee from the General Manager of the Personnel Department every six months to raise awareness about stopping all harassment.

Furthermore, a framework to properly handle inquiries and complaints was put in place in fiscal 2000 with the establishment of the Harassment Consultation Hotline within the Personnel Department and Compliance Hotline both inside and outside of the Company. The privacy of all those involved is protected and every effort are made to ensure that neither the complainant nor those cooperating are treated detrimentally.

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Sustainability Report