Business Overview

The Environment and Resources Business is acquiring SGEC and other forest certifications across roughly 48,000 ha (about 1/800 of the national land area) of company-owned forests in Japan while strategically expanding forest management based on a policy of “sustainable forestry” that plants, cultivates, harvests and replants trees.

In Indonesia, Papua New Guinea and New Zealand, we own and manage approximately 231,000 ha of plantation forest, including forests which have acquired the Forest Stewardship Council (FSC) and other third-party forest certifications, which help conserve biodiversity and contribute to the development of local communities.

Other initiatives primarily include the development of a wood biomass power generation business in Japan as a renewable energy business that effectively uses wood and other resources.

Main Business Figures (FY2020 Result)

Value Chain of Forest Management

Seedling Farming and Cultivation

We are contributing to the sustainability of forest resources and active resource production through efforts such as the construction of greenhouse-type cultivation facilities with proper environmental management using proprietary production technology for seedling containers.

We also engage in tree cultivation under the concept of “the right tree in the right place,” with consideration of soil conditions at a given plantation, orientation and geography, etc.

Cultivation

The Sumitomo Forestry Group manages a total of approximately 48,000 hectares of company-owned forests in Japan and a total of around 230,000 hectares of company-owned plantation forest area overseas.

The Group works to maintain and enhance the public functions of forests by carrying out underbrush clearing, pruning, thinning and other appropriate management required for them to grow.

Logging/
Transport

The Sumitomo Group logs in forests it owns or manages based on long-term logging plans. The timber that is harvested is transported to business partners and plants.

Site Preparation

The Sumitomo Forestry Group prepares plantations that have been harvested to build an environment allowing subsequent planting.

Value Chain of the Renewable Energy Business

Procurement

The Sumitomo Forestry Group aims to further use of scrap wood produced during construction and renovation of housing and unused forest resources as fuel for wood biomass power generation plants to generate energy and promote the business while also enhancing forest value.

Production

The Sumitomo Forestry Group strives to recycle wood waste into wood resources through our business operations supplying chips as fuels including for biomass power generation plants. We make chips from waste wood such as offcuts produced in the logging process for timber as well as wood waste produced on construction sites, in addition to unused forest resource from plantations.

Power Generation/
Wholesales

The Sumitomo Forestry Group aims to build a 300 MW power generation capacity system in the future. The wood biomass power generation business at the core of these efforts is expanding our energy business by leveraging the characteristics and conditions of each area in five regions.

Page Top

Take an Integrated Approach to Business Operations and ESG Initiatives in the Environment and Resources Business

The perspective of sustainability is essential to management of forests with multifaceted functions such as water source recharge, prevention of global warming, biodiversity conservation and the supply of timber and other forest products in cycle of several decades to several centuries from the planting, cultivation and harvest to the replanting of trees.

Currently in Japan, plantations planted after the war are approaching the harvesting period, and the nation is underway trying to turn forestry into a growth industry by encouraging the use of timber. The stable supply of seedlings for replanting has become a challenge amid expectations of ongoing clear cutting while encouraging the use of domestic timber. Our domestic forestry business adopted leading-edge forestry equipment to improve productivity while furthering preparations and enhancements for a seedling production system among other initiatives.

In our overseas plantation forest operations, worldwide deforestation and stronger regulations on harvesting natural forest are expected to reduce the supply of natural wood even more. In this business climate, the Sumitomo Forestry Group engages in sustainable forest management and industrial material production harmonized with local communities and the environment. This includes the development of large-scale plantation forest operations and the use of cut raw wood as raw materials of our manufacturing business.

The renewable energy business mainly promotes wood biomass power generation that uses chipped scrap wood and unused forest resources as fuel to address the insufficient supply of sustainable energy services. Not only does this business supply renewable energy, but it also contributes to the advancement of forestry from the effective use of forest resources to local forest environment maintenance.

ESG Initiatives in the Environment and Resources Business

Page Top

Sustainability Report