Basic Policy

 

Sumitomo Forestry Group engages in responsible procurement in accordance with the Sumitomo Forestry Group Procurement Policy to further expand the amount of sustainable timber and wood products handled and used. The Mid-Term Sustainability Targets sets a numerical target that commits to 100% sustainable timber and wood products handled and used by the Group by the end of fiscal 2021. We promote even greater standardization of sustainable wood materials and construction materials in society by using a PDCA cycle to drive initiatives further toward reaching this target.

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Promotion for Sales of Environmentally-friendly KIKORIN-PLYWOOD

Sumitomo Forestry has set a ratio of products that use certified timber and plantation trees from the procurement of import wood board products such as plywood as a 2020 target and it strives to expand this. Among these products, JAS Plywood that uses 50% or more FSC-certified or PEFC-certified timber and sustainable plantation timber is marketed as KIKORIN-PLYWOOD, and some of its revenue is invested in plantation businesses in Indonesia. This product made using 50% or more certified timber or plantation timber, was praised as being environmentally conscious. It received an encouragement prize in the 1st EcoPro Awards* on September 12, 2018. It accounted for about 11% of our plywood sales volume during fiscal 2019, amounting to about 51,417 m³. We will contribute to environmental protection by expanding this volume by about two-fold in fiscal 2020 to 100,000 m³.

* Hosted by the Japan Environmental Management Association for Industry. It was established in fiscal 2004 in order to help further develop and spread the use of Japanese eco-products by broadly communicating information about eco-products among current and prospective clients while also supporting the efforts of the relevant suppliers. The EcoProducts Awards were renovated in fiscal 2018, now presented as the EcoPro Awards.

KIKORIN-PLYWOOD

KIKORIN-PLYWOOD

The EcoProducts Awards

Sales of KIKORIN-PLYWOOD

2015 2016 2017 2018 2019
28,100m³ 30,200m³ 46,255m³ 50,541m³ 51,417m³

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Exporting Domestic Timber

Overseas demand for timber is forecast to grow in emerging countries including China propelled by economic development and population growth. Under these circumstances, Japanese timber exports have also been on the rise in recent years, and a target of 262,000 m³ has been set for Japanese timber export volume within our Mid-Term Sustainability Targets, to be reached in fiscal 2021 as we explore overseas market opportunities for Japanese timber.

In fiscal 2019, exports of domestic timber declined 29.3% to 126,900 m³ compared to the previous term due to a market crash caused by the trade war between the United States and China at the beginning of the fiscal year, and a flood of damaged materials into the European market, and then another subsequent market crash caused by the spread of the novel coronavirus infection (COVID-19) at the end of the fiscal year.

In fiscal 2020, we expect exports to rise to fiscal 2018 levels in light of the containment of COVID-19 in China and market recovery.

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Fiscal 2019 Breakdown of Net Sales in the Timber & Building Materials Business (Non-consolidated)

Fiscal 2019 Breakdown of Net Sales in the Timber & Building Materials Business (Non-consolidated)

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Sustainability Report