Material Issue 5: Corporate Ethics and Governance Structures

Basic Policy

With the background of globalization, diversification and expansion of our business, the Group is reviewing its philosophy structure. Sustainability management based on the Corporate Philosophy, Our Values, and Code of Conduct complies with international codes, international initiatives, and other social demands. In addition, we are working to reinforce the mechanism for managing business risk—which also encompasses Group companies—by constantly managing prioritized risks through the Risk Management Committee while strengthening Business Continuity Management (BCM) system as a measure against disasters.

Management of Material Issue 5

Within our Mid-Term Sustainability Targets, our Material Issue 5 “corporate ethics and governance structures” is reflected in one broad goal, which we incorporate into our management practices through inclusion in annual activity policy and measures for each department.

Targets of Material Issue 5

  • Reinforcing risk crisis and compliance structures

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Management of Each Target

Reinforcing Risk Crisis and Compliance Structures

Specific steps based on issues and strategies Indicators for Evaluation Managing department FY2018 result FY2019 target FY2020 target FY2021 target
Progress check of prioritized risk items set by the Risk Management Committee and share materialized risks Progress management for prioritized risks (conducted on a quarterly basis by the Risk Management Committee) (%) General Administration Department 100 100 100 100
Understand the extent of compliance awareness and enhance channels for reporting misconduct and compliance violations Regular implementation and phased deployment of compliance awareness surveys General Administration Department - Sumitomo Forestry Major group companies in Japan All group companies in Japan and some group companies overseas
Obtain external certification for Business Continuity Management (BCM) Obtaining resilience certification
General Administration Department - Sumitomo Forestry Major group companies in Japan All major domestic group companies
Analyze and disclose potential financial impact from climate-related risks that could (potentially) have on the organization Conduct scenario analysis and disclosure consistent with guidance from the Task Force on Climate-related Financial Disclosures (TCFD) Sustainability Department Implement for two sectors, domestic housing business and timber and building materials business Re-examination of analysis results and expansion of scope of application for two sectors: domestic housing business and timber and building materials business Re-examination of analysis results and expansion of scope of application for two sectors: domestic housing business and timber and building materials business Completion of re-examination of analysis results for all business departments, and incorporation into the subsequent mid-term plan.

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Sustainability Report