Environmental Management Structure

To ensure that management is practiced in accordance with the Environmental Policy, whose objective is to contribute to the creation of a sustainable society, the Sumitomo Forestry Group has established an environmental management structure with the President of Sumitomo Forestry assuming overall responsibility.

The General Manager of Sustainability Department under the President and Representative Director acts as the Environmental Management Officer to raise the effectiveness of environmental activities by drafting a Sustainability Budget as a quantitative target for each fiscal year for environmental activities that each department of the Group is advancing and by regularly checking progress in with the Sustainability Committee.

In addition, Sustainability Committee reports its findings to the Board of Directors, and the Board of Directors is involved in monitoring environmental performance.

Environmental Management Structure

Roles of Environmental Management Personnel

• Group Overall Environmental Representative: President (CEO)
• Group Environmental Management Officer: General Manager, Sustainability Dept.
• Division Environmental Management Officers: General Manager, Administration and Planning Dept.
  (Timber and Building Materials Div.); General Manager, Administration and Planning Dept. (Housing Div.);
  General Manager, Management and Administration Dept. (Global Construction and Real Estate Div.);
  General Manager, Lifestyle Service Dept. (Lifestyle Service Div.)
• Department Environmental Managers: General Managers, presidents of group companies, etc.
• Environmental activity personnel: Environmental promotion personnel

ISO14001 Certification

*1 Certification was acquired by individual departments and divisions from 1997 before integrated ISO14001 certification was acquired for the entire company

*2 Acquired by inclusion in Sumitomo Forestry's integrated certification

Audits by External Certification Bodies

Companies covered by the multi-site integrated ISO14001 certification in Japan undergo routine reviews conducted once a year by the certification body JIC Quality Assurance Ltd. In fiscal 2023, 36 departments at four companies underwent renewal and transition reviews for the ISO14001: 2015 (JISQ 14001: 2015).

As a result of these reviews, one nonconformity and 71 opportunities for improvement were identified. On August 3, 2023, the companies under review were approved to sustain their registration after the assessment.

For the one nonconformity, we investigated the root causes, implemented measures to prevent recurrence, and horizontally shared the information, including in other branches. For each of the opportunities for improvement, we examined improvement methods and took individual action. Issues common to all Group companies were shared by the Sustainability Department, and the status of improvement was confirmed through internal environmental audits. The audit was conducted with particular attention to the effectiveness of compliance with environmental laws and regulations, compliance mechanisms, and responding (measures) to deal with matters where targets were not achieved.

Internal Environmental Audits

In addition to reviews conducted by external certification bodies, companies covered by the multi-site ISO14001 certification periodically carry out internal environmental audits. These audits are implemented by employees who have passed an exam upon completion of an in-house training course taught by third- party instructors to become internal environmental auditors.

Following the amendments of the international standards in September 2015, requiring these courses be taken and passed by all general managers within the scope of the registration in particular enhances understanding about the revisions to these standards and strengthens leadership. As a result, the number of employees certified as internal environmental auditors has reached a cumulative total of 1,738 (as of the end of fiscal 2023).

Internal Environmental Audits were conducted in 97 departments, focusing on departments that were often highlighted in Internal Environmental Audits in fiscal 2022. With respect to observed nonconformities and improvement proposals, the audited department shall take corrective actions and submit a corrective report based on the reviews to the audit department and the Sustainability Department compiled the audit results and reviewed them with the management rank.

Each of our overseas manufacturing companies has acquired the certification and conducts internal environmental audits.

Compliance and Violations of Environmental Laws

There was one case suspected of being a serious violation of environmental regulations* by the Sumitomo Forestry Group, and we are currently investigating the details. Other than that, there have been no serious violations in the past five years.

* Violation with a penalty or punishment of one million yen or more