Contributing to Communities Where Sumitomo Forestry Operates

The Sumitomo Forestry Group aims to contribute to sustainable local development through its operations. When starting new businesses or expanding its overseas business sites, the Group's policy is to consider the environment, revitalize local economies and promote employment and thereby operate in harmony with local communities.

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Activities in Indonesia

Support for Children Through the KTI Educational Foundation

Kutai Timber Indonesia (KTI) founded the KTI Educational Foundation in 2000 to commemorate its 30th anniversary with the purpose of improving the livelihood of people in Indonesia through education as well as engaging in social activities. This foundation primarily provides educational support to impoverished children as well as school supplies to public schools in Probolinggo in the East Java province where a Sumitomo Forestry Group plant is located. In fiscal 2020, we gave school supplies to the orphaned children, made donations to facilities unable to provide a sufficient number of masks or hand sanitizer, and contributed IDR 92,473,350 (approx. 670,000 yen).

Providing uniforms to children at the orphanage

Providing uniforms to children at the orphanage

Community Development Through Project EARTH Initiatives

Sumitomo Forestry has also been involved in Project Earth since 2009 to offset CO2 (approximately 60,000 tons) emitted from the harvesting of wood used for primary building materials of Sumitomo Forestry Home houses, and emitted from transport, fabrication, and construction by planting in Indonesia. This project combines “environmental reforestation” for the purpose of recovering the ecosystem of degraded forests in national parks and community-oriented “industrial tree plantations” that unify sustainable comprehensive forest management and community contributions.

Environmental Reforestation to Combat the Harsh Natural Environment and Forest Fires

In Bromo Tengger Semeru National Park located in East Java, Indonesia, Sumitomo Forestry planted about 1.1 million trees, including supplementary planting, over roughly 700 hectares of plantation forest between fiscal 2009 to fiscal 2016. Mount Bromo erupted in 2010 at this national park damaging the plantation forest due to volcanic ash and gas. At the end of a severe dry season in November 2014, a large fire broke out and burned almost all of the roughly 400 hectares of forest planted up to 2013. We replanted the forest, constructed a fire belt that was six meters in width and 20 km in total length, prepared water and equipment for fire-fighting, and introduced around the clock dry season patrols. However, in October 2019, a large number of forest fires broke out in the national park and once again damaged approximately 470 hectares of plantation forest.

Sumitomo Forestry continued to manage the plantation forest even after 2017 upon completion of the reforestation until transferring the environmental reforestation responsibilities to the national park in March 2020 after completing the agreed upon project with them. In the future, the national park plans to restore the ecosystem by maintaining and managing the plantation forest.

Community-oriented Industrial Tree Plantation Side-by-Side the Local People Who Wish to Plant Trees

Starting in the Lumajang Regency located at the foot of Mount Semeru in East Java, Indonesia, Sumitomo Forestry worked with the local people to cultivate about 3,800 hectares of community oriented industrial tree plantation between fiscal 2010 and 2017. The harvest and sell of the grown trees that were planted will stimulate the local economy. Pt. Kutai Timber Indonesia (KTI), a Sumitomo Forestry Group company, took charge of the local activities promising to purchase future logs to give the local people confidence in their planting efforts. Sumitomo Forestry not only engaged in planting activity, but also provided local lifestyle infrastructure, building routes necessary for reforestation, and made donations such as academic supplies to kindergartens and elementary schools in addition to setting up public restrooms in villages.

After completing the planting efforts in fiscal 2017, the cultivation and reforestation efforts transferred to KTI and participating citizens. Thereafter, the local people involved have been planting trees they themselves cultivated and harvested in addition to seedlings provided for free from KTI. KTI provided the local people with 920,000 seedlings in fiscal 2018, 680,000 seedlings in fiscal 2019, and 600,000 seedlings in 2020.

66,891 houses were delivered during this project period with a roughly 400,000-ton CO2 fixation target. As of ten years since these planting efforts, the cumulative total estimated CO2 fixation was 430,000 tons*. This is expected to reach our carbon dioxide fixation target of 6 tons per household.

Sumitomo Forestry strives to support the local people who want to plant more trees together with KTI in Indonesia.

* Excludes CO2 fixation for environmental reforestation deemed to have a high risk of fires and other disasters

Community-oriented Industrial Tree Plantation Area and Estimated CO2 Fixation

FY Number of Relevant Households Target CO2 Fixation Plantation Area (ha) Estimated CO2 Fixation
2009 3,014 18,084 0 0
2010 8,435 50,610 740 68,734
2011 9,253 55,518 588 63,115
2012 9,407 56,442 702 58,419
2013 9,781 58,686 505 62,854
2014 9,350 56,100 482 61,645
2015 8,759 52,554 408 62,161
2016 8,892 53,352 406 55,273
Total 66,891 401,346 3,831 432,202

* The estimated CO2 fixation value is calculated by a prescribed method from the estimated timber volume of plantation forest ten years after planting.

Water Maintenance and Management to Prevent Fires

Water Maintenance and Management to Prevent Fires

Fire Prevention Response Team

Fire Prevention Response Team

Harvesting and Transport of Timber

Harvesting and Transport of Timber

Community Contributions Through Social Forestry

As a manufacturer and seller of plywood and processed wood products, PT. Kutai Timber Indonesia (KTI) contributes to the local economy and community greening through “social forestry” by distributing seedlings to local residents for free to plant on the lands they own and promising to purchase timber when the trees are mature at its market value.

Donated Seedlings

Donated Seedlings

Distribution of Free Seedlings and Buy Back Guarantee of Logs

Distribution of Free Seedlings and Buy Back Guarantee of Logs

Respect for Local Tradition and Culture at Overseas Plantations

At plantation forest operations in Indonesia, Sumitomo Forestry also deepens its understanding about the local culture and traditions by engaging in efforts to respect the traditions and cultures of local communities, such as capital support for traditional events held by local residents.

Technical Development for Sustainable Peatland Use

Sumitomo Forestry strives to develop forestry technologies together with the region through large-scale plantation operations in West Kalimantan, Indonesia.

Building Infrastructure and Providing Basic Educational and Medical Support in Neighboring Business Regions

Mayangkara Tanaman Industri (MTI), a large-scale plantation forest business operator in Indonesia, views sustainable development of local communities as a vital managerial challenge, and thereby, undertaking community services that meet the needs of local residents in the areas through education, medicine and hygiene, infrastructure development, agriculture, and livelihood enhancement.

This plantation forest operation acts as an invaluable employment opportunity for a local community with little industry. In particular, seedling production creates local employment opportunities for women who have few options.

Up until now, a water purifying plant was setup in villages in business regions to supply safe water for daily life to residents. In addition, Sumitomo Forestry works to provide basic educational support by building local elementary schools and deploying teachers where facilities and instructors are lacking as well as medical support by operating clinics and providing free examinations for neighboring residents.

In fiscal 2018, adoption of flood disaster prevention in neighboring communities began with the water level management technology developed through the Sumitomo Forestry business. Infrastructure that is easy to maintenance and able to effectively adjust water levels is offered to neighboring communities.

Due to the impact of coronavirus disease (COVID-19) in fiscal 2020, Sumitomo Forestry set up a mask production and distribution team from the end of March and the employees produced washable cloth masks by themselves to protect the health and safety of employees and overcome the ongoing shortages of masks throughout Indonesia. The masks produced by this team were not only given to employees but also donated to local hospitals and residents.

Total number of local residents using the MTI clinic annually

Total number of local residents using the MTI clinic annually

* Data collection period: January to December 2020

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Activities in Papua New Guinea

Building Social Infrastructure

Open Bay Timber Ltd. (OBT) in Papua New Guinea has been operating a plantation forest since 1984 and it contributes greatly to the economic development of the region. In April 2007, OBT became a Group company of Sumitomo Forestry to further healthy expansion and effective use of reforestation timber resources.

OBT also operates its own clinics and super markets for their employees and local residents to use because the preparation of social infrastructure is insufficient in Papua New Guinea. In neighboring villages, OBT nurses periodically visit neighboring villages to perform infant health checkups and provide advice to the sick as well as conduct educational activities. Furthermore, a dedicated clinic vehicle was arranged to transport patients to larger hospitals.

OBT employs full-time health workers day and night at the Open Bay Clinic to provide general medical care, support childbirth and pharmaceutical needs, accept patients into the hospital, and transfer patients with serious medical concerns to major hospitals by land and sea.

The patients receiving care are not only employees and their families but also many people who travel from far away for treatment.

OBT also took a variety of measures in respond to the spread of the COVID-19, such as the setup of hand-washing stations and training opportunities on public health for the local people. In Papua New Guinea, hand-washing and gargling have not been common until now, but became habits along with wearing masks indoors through these training.

OBT is also helping distribute textbooks and other educational materials to elementary schools in addition to its support transporting medical and sanitary supplies provided by the government slowed by the lock downs due to the COVID-19 to the Open Bay Clinic and neighboring medical facilities.

Full View of Open Bay Clinic

Four-wheel drive vehicle to transport patients available at the clinic

Four-wheel drive vehicle to transport patients available at the clinic

Training Model to Prevent the Spread of the COVID-19 to the Local People

Training Model to Prevent the Spread of the COVID-19 to the Local People

Red Cross Training Model to Prevent the Spread of the COVID-19

Red Cross Training Model to Prevent the Spread of the COVID-19

Hand Washing Station Setup in Front of the Office

Hand Washing Station Setup in Front of the Office

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Activities in the United States

Social Contribution Activities Through the Housing Business

MainVue Homes set up MainVue Day in 2015 as a day each year for employees to participate in volunteer activities at least once. This program both works as an ongoing philanthropic activity and also an opportunity to reflect on a corporate philosophy that focuses on giving back to society.

MainVue Homes employees took advantage of MainVue Day in 2019 to participate in a volunteer effort held by the Low Income Housing Institute (LIHI)—a non-profit offering housing assistance to low-income and homeless people in Washington—to build a group of small homes. There are approximately 40,000 homeless people living in Washington, of which 7,000 are estimated to live with children. LIHI builds small homes equipped with electricity and heat for families living under such conditions. With the hope of providing at least a little more comfort in the lives of these impoverished people, MainVue Home employees pitched in wherever they could from painting both the inside and outside of homes and building front porches to cleaning the housing exteriors.

MainVue Homes Employees Taking Part in the Construction Work

MainVue Homes Employees Taking Part in the Construction Work

Homes Built by the Low Income Housing Institute

Homes Built by the Low Income Housing Institute

Crescent Communities worked with the project held by Habitat for Humanity—an international non-profit organization providing housing assistance in over 70 countries worldwide— to build and provide homes at an accessible price to help families who cannot afford a home. The Company worked with 14 other multifamily developers active in Charlotte, North Carolina to fund and build a home in the northern area of the city in 2019. Employees from Crescent Communities took part in the construction and completed the home in July. The house was delivered without fail to a family who jumped in to help with the construction with passion for their own home.

Rather than simple economic assistance for families struggling to buy a home, this project is an effort for families who still want a scheduled mortgage to get involved for a designated amount of time in the construction. The project includes courses on asset formation and home maintenance and management as an initiative that goes beyond providing a home to support the independence of home buyers.

Sumitomo Forestry Group companies DRB, Edge Homes, and Mark III Properties also donated to Habitat for Humanity and took part in housing support activities.

Employees from Crescent Communities taking part in the construction work
Employees from Crescent Communities taking part in the construction work

Employees from Crescent Communities taking part in the construction work

Participation in Environmental Conservation Efforts

Crescent Communities took part in the Trees4Trash clean up and planting event held as an environmental conservation effort by the North Carolina Wildlife Federation. The Federation plants one tree for every 11 kg of trash. In fiscal 2020, Crescent Communities planted 30 trees through this conservation effort. In the cleanup activities held by the Catawba Riverkeeper Foundation, Crescent Communities helped pick up trash around the Catawba River which flows from western North Carolina to South Carolina. About 1,400 local people and others who participated collected 27,000 kg of trash at 40 different locations including the area where Crescent Communities is expanding its businesses. Crescent Communities plans to actively participate in these environmental conservation efforts next season as well.

Tree Planting

Tree Planting

River Clean Up

River Clean Up

Donations of Wooden Toys by Provisions of Offcuts Produced During Manufacturing

The Canyon Creek, which manufactures and sells wooden cabinets in the United States, contributes to the region by providing offcuts of timber produced in manufacturing products to local charity organizations which donate toys to make donations of wooden toys and puzzles to child protection facilities and children's hospitals. Although it was suspended in fiscal 2020 due to the impact of the COVID-19, Canyon Creek will continue to engage in this initiative.

Trains and Other Donated Wooden Toys

Trains and Other Donated Wooden Toys

Local Charity Organization Members Making Toys

Local Charity Organization Members Making Toys

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Activities in Australia

Henley Properties, which builds and sells detached homes, raised and donated money from the sale of a spec home built with cooperation of a housing lot developer, materials supplier and other business partners in 2020. Although this is an annual charity auction selling a home directly, Henley Properties used an agent in 2020 due to the impact of the COVID-19. Many business partners took part in these activities from the provision of land to design, estimation, material manufacturing, procurement, and labor management in order to build this two-story home in Wollert located in north Melbourne. Henley Properties donated all the earnings from the charity auction this year to a children's hospital. Since these efforts began in 1993, more than 16.25 million Australian dollars (1,153.8 million yen) in total donations have been provided through the auction to be used for the medical costs of children suffering from diseases.

Interior of the House Sold at the Charity Auction
Interior of the House Sold at the Charity Auction

Interior of the House Sold at the Charity Auction

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Activities in New Zealand

Tasman Pine Forests Ltd. (TPF) in New Zealand engages in local contribution activities to bring health and safety to the local community.

Contributions to Local Disaster Prevention and Rescue Efforts

TPF donated a fire engine and fire-fighting equipment to Fire and Emergency New Zealand (FENZ), the fire-fighting organization of New Zealand. The Rural Fire Network, an organization under FENZ, handles the management operations of fire-fighting equipment and engages in local forest fire prevention and fire-fighting activities. Cooperating with FENZ, local municipalities, and forestry companies nearby, TPF is contributing to uniform fire prevention and fire-fighting efforts in the region from raising awareness in the local community to strengthening patrols.

Since fiscal 2017, TPF has been donating activity capital as a sponsor to the Nelson Marlborough Rescue Helicopter Trust every year. This trust is deploying rescue helicopters roughly 500 times a year for natural disasters that occur in the region and for leisure accidents. The TPF logo is posted on the Marlborough Rescue helicopter.

Fire engine donated by TPF

Fire engine donated by TPF

Pilot and paramedics with the Nelson Marlborough Rescue Helicopter Trust Helicopter

Pilot and paramedics with the Nelson Marlborough Rescue Helicopter Trust Helicopter

Mortar and Pestle Donation to a Local Japanese Society

TPF donated a mortar and pestle made from the wood of Totara (native tree species) damaged by fire in the Pigeon Valley area to the Nelson Japanese Society of New Zealand. The Sumitomo Forestry representative at the time had also donated the previous mortar and pestle more than 30 years ago. The Nelson Japanese Society uses the mortar and pestle once a year when it holds a Mochitsuki (Rice Cake Pounding) ceremony, which provides an opportunity for immigrants from Japan to enjoy a fond flavor of Japan. This gives not only the children of Japanese families born in New Zealand a chance to experience Japanese culture but also offers a chance for New Zealanders to learn about Japan.

Mortar and Pestle Donated to the Nelson Japanese Society Made from the Wood of Totara (native tree species) Damaged by Fire in the Pigeon Valley Area

Mortar and Pestle Donated to the Nelson Japanese Society Made from the Wood of Totara (native tree species) Damaged by Fire in the Pigeon Valley Area

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Activities in Myanmar

Support for Building Monastic Schools

Sumitomo Forestry is involved in the Myanmar Monastic School Support Team and the secretariat, bodies established to support the construction of monastic school-style community schools in Myanmar. Activities which began in 2014 aim to build one monastic-style school every year through donations of companies and individuals who see the benefit. Six schools have been completed to date. At the completion of a school, the donor companies held an opening ceremony with participants from advocating companies and an opportunity to engage with the local children.

Even though construction was postponed in fiscal 2020 due to the COVID-19, we plan to continue our support in the future as the Myanmar Monastic School Support Team.

School before rebuilding

School before rebuilding

Monastic School After Rebuilding and Attendees at the Ceremony

Monastic School After Rebuilding and Attendees at the Ceremony

Construction of Monastic Schools by Myanmar Monastic School Support Team, in Number

Monastic School Completion Construction Region Number of Students Sponsors
Wutt Kyway Taw Pyay Monastery School October 2014 Mingaladon Township, Yangon City Approx. 260 18 companies, 4 individuals
Pyin Nyar Theingi Nun School November 2015 Mingaladon Township, Yangon City Approx. 130 18 companies, 4 individuals
Myittar Yaung Chi Nun School November 2016 South Dagon Township, Yangon City Approx. 140 19 companies, 5 individuals
Shuepi Paremiin Monastery Elementary and Middle School March 2018 Aung Myay Tharzan Township, Mandalay Approx. 520 20 companies, 6 individuals
Aung Mingalar Monastery Elementary and Middle School January 2019 Pyigyidagun Township, Mandalay 305 19 companies, 6 individuals
Aung Myae Yadanar
Monastery Elementary and Middle School
January 2020 Pyigyidagun Township, Mandalay 338 15 companies

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Sustainability Report