Material Issue 2: The Development and Sale of Reliable and Safe Products and Services that Consider the Environment and Society

Basic Policy

Sumitomo Forestry Group provides a full complement of products and services related to our customers’ lifestyles, beginning with housings. While it goes without saying that we attend to customer's peace of mind and safety in providing products and services, we also believe that engaging in development and sales mindful of creating a sustainable society is a crucial role that our Group must fulfill.

One of the areas that we could contribute the most in reducing environmental impact is the reduction of greenhouse gases emissions from housings. Net Zero Energy Houses (ZEH) and other housing measures in Japan offer guidance to promote eco products as well as advocate excellent long-term housing as an asset. We have set targets for ratio of orders we receive for ZEH and other environmentally-friendly products to contribute in a sustainable society while serving customers in keeping with their needs by reducing household energy consumption through recommending houses built to ZEH specifications.

Management of Material Issue 2

Within our Mid-Term Sustainability Targets, our material Issue 2 “the development and sale of reliable and safe products and services that consider the environment and society” is broadly divided into four goals, which we incorporate into our management practices through inclusion in annual activity policy and measures for each department.

Targets of Material Issue 2

  1. Increasing environmentally conscious products and services
    * including reducing greenhouse gas emissions towards creating a decarbonized society (SBT: Scope 3)
  2. Creating an environment that considers biodiversity
  3. Expanding businesses that contribute to resolving social issues
  4. Promoting sustainable and innovative technological development

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Management of Each Target

Increasing Environmentally Conscious Products and Services

Specific steps based on issues and strategies Indicators for Evaluation Managing department FY2018 result FY2019 target FY2020 target FY2021 target
Promote standards for energy generation and conservation housing Rate of orders for ZEH (%) Housing and Construction Division 38 60 80 80
Rate of Environmentally-friendly renovation order rate (%) Housing and Construction Division 48.4 50 55 60
Sales of salsh, glass wool and solar power generation systems
(unit: million yen)
Timber and Building Materials Division 22,723 23,119 23,568 24,040
Increase value added by carbon stock from use of timber Carbon stock in wooden architecture in Japan
(t-CO2)
Housing and Construction Division 192,536 190,676 190,164 199,509
Propose products utilizing local seedlings and natural cycle Rate of orders for Environmentally-friendly product* (%) Housing and Construction Division 56.5 58.0 60.0 63.0

* Environmentally-friendly products consist of the following: (1) local seedlings, (2) permeable paving material, (3) green wall construction, (4) rooftop greening, (5) biotope and (6) use of recycled materials

Creating an Environment that Considers Biodiversity

Specific steps based on issues and strategies Indicators for Evaluation Managing department FY2018 result FY2019 target FY2020 target FY2021 target
Expand sales of local species Number of local tree species (unit: trees) Housing and Construction Division 402,000 450,000 480,000 500,000

Expanding Businesses that Contribute to Resolving Social Issues

Specific steps based on issues and strategies Indicators for Evaluation Managing department FY2018 result FY2019 target FY2020 target FY2021 target
Increase number of rooms through new facilities construction Number of rooms at private-pay elderly care facilities (rooms) Lifestyle Service Division 1,457 1,457 1,890 2,014
Expand renewable energy business Amount of electricity supplied by renewable energy business (converted to number of households) Environment and Resources Division 213,860 217,768 217,768 373,826

Promoting sustainable and innovative technological development

Specific steps based on issues and strategies Indicators for Evaluation Managing department FY2018 result FY2019 target FY2020 target FY2021 target
Solve technical issues toward achieving W350 Project The current state of progress in W350 Project development Tsukuba Research Institute - Basic design formulation toward achieving W30 Achievement of W30 and construction of actual properties Materials development and basic design formulation toward achievement of W70

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Sustainability Report