Mid-Term Sustainability Targets as part of the Mid-Term Management Plan

Material Issue 4 To provide comfortable and secure spaces for society at large

Material Issue 4

Material Issue 4 To provide comfortable and secure spaces for society at large

Providing safe, comfortable and secure spaces to society at large.

Related SDGs

3.GOOD HEALTH AND WELL-BEING 9.INDUSTRY, INNOVATION AND INFRASTRUCTURE 11.SUSTAINABLE CITIES AND COMMUNITIES

Basic Policy

Various social issues became apparent, such as discrimination, poverty and other human rights-related issues, intensification of disasters, and the spread of infection with COVID-19. Under these circumstances, more attention has been directed to well-being. Accordingly, people's living spaces, especially homes, are more strongly required to be safe, secure, comfortable and warm. Also, customers’ needs have become diverse due to changes in their lifestyles and society, such as increasing desire for well-being, shrinking housing needs due to declining population, relocation of housing due to the low birth rate and aging population, coexistence with foreign nationals, and changes in values related to race, religion, ethnicity, nationality, and gender (LGBTQ). It is important for companies to accurately respond to customer needs amid such changes.

The Sumitomo Forestry Group states, "We provide high-quality products and services that bring joy to our customers" in Our Values, and focuses on providing high-quality products that give a sense of security, safety, comfort and warmth to many customers to increase their satisfaction, including purchasers of new custom-built detached houses and users of our renovation services.

Impact on Society and the Environment

Material Issue 4 Impact (Opportunities) Impact (Risks)
To provide comfortable and secure spaces for society at large

Providing safe, comfortable, and secure spaces to society at large.
  1. Improving customer satisfaction by reducing complaints
  2. Ensuring social credibility by improving quality
  1. Responding to changes in demographics and consumer needs

Management of Material Issue 4 (FY2025)

In the Mid-Term Sustainability Targets Phase 2 (2025 to 2027), Material Issue 4 is roughly divided into the following two categories and managed through the annual action policies and measures adopted by the department in charge.

Improving Customer Satisfaction

We regard improving the quality of the houses and buildings that we offer to customers and increasing their satisfaction as a management priority. To measure the results of our efforts, we take a questionnaire survey with customers who have just moved into our houses and buildings. We use a non-consolidated net promoter score (NPS)* as a performance indicator for the survey.
In fiscal 2025, the NPS was 56.6 points, exceeding the target of 56.0 points. Although the NPS was unsatisfactory in the first half of the term, we achieved a favorable result in the latter half. We achieved this improvement by proactively communicating with customers who had given us low ratings, and attentively responding to and resolving their complaints. Also, we reviewed customers’ monthly evaluations, shared related information internally, and enforced organizational learning from individual cases.

*Net promoter score (NPS): Scores of 0 to 10 are given in answer to the question, “Would you recommend the company to your friends or acquaintances?” The NPS is calculated by deducting the percentage of respondents who answered 0 to 6 (“critics”) from the percentage of respondents who answered 9 or 10 (“recommenders”). The higher the NPS, the higher the customers’ tendency to recommend the company.

Results

Ratings in the table below
Achieved: ◯ Not achieved but improved year on year: △ Not achieved and declined year on year: ✕

Indicator for Evaluation
(Numerical Target)
Department in Charge FY2025
Target
FY2025
Result
FY2025
Rating
FY2027
Target
Questionnaire at the time of moving in (Non-consolidated NPS value) (pt) Housing Division 56.0 56.6 58.0

Response to Declining Birthrate and Aging Population

In fiscal 2025, we offered a total of 1,882 rooms at our nursing care facilities to provide the elderly with a safe living environment. We plan to increase the number of rooms to 1,943 by fiscal 2027, thereby meeting the expanding demand for nursing care services.

In the operation of nursing care facilities, the occupancy rate directly depends on service quality. As a result of daily sales efforts, Sumitomo Forestry Group company Sumirin Care Life achieved 88.5% against the target of 87.0% for the occupancy rate. The improvement is also attributable to the brand awareness of Elegano Nishinomiya among local residents.

In contrast, Sumirin Fill Care, another Sumitomo Forestry Group company, recorded 86.3% against a targeted occupancy rate of 89.9%. The company was unable to attain the target mainly due to unforeseeable events, such as changes in the health status of residents, some of whom moved out for terminal care.

Sumirin Fill Care is intensively implementing measures for its nursing care facilities with low occupancy rates. Specifically, the company holds events open to locals, such as parties and concerts. It drops flyers in residential mailboxes in the neighborhood area, conducts a referral promotion activity for residents of its facilities and users of its daily care services, and offers a free rehabilitation service. Through these measures, the company is seeking to raise local residents’ awareness of the facilities and increase their occupancy rates.

Results

Ratings in the table below
Achieved: ◯ Not achieved but improved year on year: △ Not achieved and declined year on year: ✕

Indicator for Evaluation
(Numerical Target)
Department in Charge FY2025
Target
FY2025
Result
FY2025
Rating
FY2027
Target
Number of rooms available at nursing care facilities Lifestyle Service Division 1,882 1,882 1,943
Occupancy rate at nursing care facilities (%) Sumirin Fill Care 89.9 86.3 × 94.0
Sumirin Care Life 87.0 88.5 90.0
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