Material Issue 3: The Reduction of the Environmental Impact of Our Business Activities

Basic Policy

With the impact of climate change becoming increasingly problematic on a global scale, companies are being asked to reduce emission of greenhouse gas that cause global warming and to implement energy saving initiatives.

In consideration of the environmental impact of these operations, the Sumitomo Forestry Group fully recognizes the importance of reducing greenhouse emissions and taking other measures to combat climate change through the promotion of strict energy-saving activities, renewable energy use and other efforts. With a mid- to long-term perspective of the future, in 2018, we established greenhouse gas emission reduction goals for 2030, and were certified as SBT* in July 2018.

In addition, to reduce environmental burden and more effectively utilize natural resources, we are promoting the reduction, reuse and recycling of industrial waste.

SDGs: 6,13

* Science Based Targets. These targets are set for companies to achieve reduction goals in-line with scientific knowledge to limit the raising average temperature around the world to less than 2°C.

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Management of Material Issue 3

Within Mid-Term Sustainability Targets, our material Issue 3 “the reduction of the environmental impact of our business activities” is broadly divided into three goals, which we incorporate into our management practices through inclusion in annual activity policy and measures for each department.

Targets of Material Issue 3

  1. Reducing greenhouse gas emissions toward creating a decarbonized society (SBT: Scope 1 & 2)
  2. Protecting resources, reducing the generation of waste and achieving zero emissions
  3. Conserving and effectively utilizing water resources

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Management of Each Target

Reducing Greenhouse Gas Emissions Toward Creating a Decarbonized Society (SBT: Scope 1 & 2)

Specific steps based on issues and strategies Indicators for Evaluation Managing department FY2018 result FY2019 target FY2020 target FY2021 target
Reduce greenhouse gas emissions Greenhouse gas emissions
(t-CO2e)
Percentage change from fiscal 2017
Each department 381,613Independent assurance
+3.2%
380,356
+2.9%
398,274
+7.7%
402,768
+8.9%
Carbon efficiency
(t-CO2e/million yen)
Sustainability Department -
(0.292)*
0.341
(0.275)
0.341
(0.279)
0.318
(0.264)

* Figures in parenthesis are sales before applying accounting standards related to revenue recognition

Protecting Resources, Reducing the Generation of Waste and Achieving Zero Emissions

Specific steps based on issues and strategies Indicators for Evaluation Managing department FY2018 result FY2019 target FY2020 target FY2021 target
Promote industrial waste separation Recycling rate at new housing construction sites (%)*1 Housing and Construction Division 94.2Independent assurance 96.1 98.0 98.0
Recycling rate at housing demolition site (%)*2
(as of start of demolition work on main structure)
77.6*3Independent assurance 98.0 98.0 98.0
Recycling rate of renovation*4 business (%) 74.3 80.0 82.0 84.0
Recycling rate of power generation business (%) Environment and Resources Division 64.5 52.5 54.3 56.5
Recycling rate of overseas manufacturing plants (%) Timber and Building Materials Division 97.5Independent assurance 97.9 98.0 98.0
Recycling rates of domestic manufacturing plants (%) Timber and Building Materials Division
Housing and Construction Division
Environment and Resources Division
99.1Independent assurance 99.5
99.5
99.5
Recycling rate of Lifestyle Service Business, etc.*5 (%) Lifestyle Service Division, etc. 92.8 95.2 96.6 98.0
Waste reduction
Promote zero-emissions
Industrial waste final disposal amount (t) Sustainability Department 56,643
-11.0%*6
58,860
-7.5%
56,632
-11.0%
54,087
-15.0%
Total industrial waste generated (waste generated per detached house) (kg/structure) Housing and Construction Division 3,087
-7%*6
3,020
-9%
2,950
-11%
2,730
-18%

*1 Includes new housing construction sites of the Housing and Construction Division, Sumitomo Forestry Landscaping, as well as Sumitomo Forestry Home Engineering.

*2 Includes construction materials specified under the Construction Material Recycling Law (concrete, asphalt concrete, wood waste) and metals.

*3 Only result for FY2018 includes items not covered by the Construction Material Recycling Law.

*4 Includes renovation work sites of Sumitomo Forestry Home Tech.

*5 Includes emissions associated with Lifestyle Service Business, housing-related materials sales, and other operational locations.

*6 Percentage change from fiscal 2017.

Conserving and Effectively Utilizing Water Resources

Specific steps based on issues and strategies Indicators for Evaluation Managing department FY2018 result FY2019 target FY2020 target FY2021 target
Proper management of water resources Water use volume
(unit: 1,000m³)
Sustainability Department 2,978Independent assurance 2,981
or less
2,990
or less
3,011
or less

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Sustainability Report