Boundary of CO2 Emissions (Organizational Range)

The amount of CO2 emissions published in this report is an aggregation for companies throughout the Group, including all consolidated subsidiaries in and outside of Japan unless otherwise noted. Furthermore, the boundaries of calculating CO2 emissions by scope are as shown below.

  • Scope 1, 2 and 3
    All Group companies, including consolidated subsidiaries in Japan and oversea.

* For scope 3, the boundary was expanded to include the entire Sumito Forestry Group in fiscal 2017 from Japan

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Scope 1 CO2e Emissions

The CO2 emissions both inside and outside of Japan are calculated by using heat conversion, carbon dioxide emission coefficients stipulated in the Act on Promotion of Global Warming Countermeasures, and average value of emission coefficient measured at the biomass power plant.

The waste used for energy at manufacturing plants (wood waste and waste plastics) and wood pellets are also converted to amount of heat, and the greenhouse gas emissions (CO2e) are calculated using the CH4 and N2O emission coefficients stipulated in the Act on Promotion of Global Warming Countermeasures.

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Scope 2 CO2 Emissions

The CO2 emissions caused by use of purchased electricity in Japan are calculated by the carbon dioxide emission coefficient for each power provider in each fiscal year stipulated in the Act on Promotion of Global Warming Countermeasures.

The CO2 emissions due to the use of purchased heat are calculated by the CO2 emission coefficient stipulated in the Act on Promotion of Global Warming Countermeasures.

The CO2 emissions caused by use of purchased electricity overseas in fiscal 2019 are calculated by the carbon dioxide emission coefficient of each country according to the IEA Emission Factors 2019 issued by the International Energy Agency (IEA).

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Scope 3 CO2e Emissions

Category 1. Purchased goods and services

(Portion of outside contracts during construction of wooden detached houses)

∑ (energy use during on-site construction per home × CO2 emissions coefficient by energy) × Portion of outside contracts used in houses completed in the current fiscal year

(Purchased products)

∑ (Amount of procured product or sales × Emissions per weight or per price)

Overseas companies handling timber and building materials: Sales per unit of housing in Japan is calculated and multiplied to the sales of each overseas company.

Domestic companies handling timber and building materials: Sales per unit of timber and building materials in the Timber & Building Materials Business is calculated and multiplied to the sales of each affiliate company.

Category 2. Capital goods

∑ (Capital goods procurement value by all Group companies × Per unit emissions by industrial division)

Category 3. Fuel- and energy-related activities (not included in scope 1 or scope 2)

(Procurement)

∑ (Energy and water use × Per unit emissions of energy)

(Transport from retailers)
* The target of calculations is the use on operational sites such as plants

∑ (Energy use (weight conversion) × Estimated transport distance × Per unit use of fuel in ton-kilometers × CO2 emissions coefficient)

* Calculation based on transportation scenario

Category 4. Upstream transportation and distribution

(Transport in Japan)

∑ (Amount procured by each plant ×Estimated transport distance ×Per unit use of fuel in ton-kilometers × CO2 emissions coefficient)

CO2 emissions related to owner shipments (value to report based on the energy saving law; however, this excludes waste transport)

* Waste transport is included in Category 5

(Transport by sea)

∑ (Amount of import products procured × Distance to transport by sea from the country of procurement × Per unit emissions of ship transport)

Category 5. Waste generated in operations

∑ (Amount of emissions by type of waste × Per unit emissions by the type of waste or processing method)

Category 6. Business travel

Number of employees of all Group companies × Per unit emissions during business trips

Category 7. Employee commuting

(Type of transportation: Train/bus)

Number of employees of all Group companies × Per unit emissions during commute

* Per unit emissions during commute: Calculated from the emissions during commute for the past three years (2013, 2014, 2015) of Group companies in Japan

(Type of transportation: Automobile)

Number of employees of all Group companies × Per unit emissions during commute by automobiles

* Per unit emissions during commute: Calculated by dividing the costs of commuting by automobiles by average unit price of gasoline of that fiscal year, and then multiplying the emission coefficient of burning gasoline

* Emissions during commute using employee-owned vehicles is included in Scope 1

Category 9. Downstream transportation and distribution

(Wood yard pick up such as the plywood or fiberboard that is sold)

∑ (Sales volume × Estimated transport distance × Per unit fuel use in ton-kilometer × CO2 emissions coefficient)

* Calculation based on transportation scenario

Category 10. Processing of sold products

(Plywood work and Precut factories)

∑ (Sales volume of crude wood and processed materials × Per unit emissions during processing)

* Per unit is based on the LCA procurement implemented in the past by the company

Category 11. Use of sold products

(CO2 emissions during habitability)

∑ (Annual energy use per household × CO2 emissions coefficient by energy) × Number of households × Number of houses completed by construction method for fiscal year

* Emissions related to renovations are omitted because there is a possibility to count a portion of Scope 1 and Scope 2 emissions twice for affiliate companies engaged in the renovations business (Sumitomo Forestry Home Tech Co., Ltd.)

* Energy use per household (electricity/city gas):
In Japan : Calculated by using the Building Research Institute’s energy consumption performance calculator program
Overseas: Average of dividing amount of fuel and electricity used per state released by the government by number of households

Category 12. End-of-life treatment of sold products

(CO2 emissions during demolition)

∑ (Fuel use during demolition per household × CO2 emissions coefficient by fuel) × Number of houses completed for the current fiscal year

* Fuel use during demolition per household (diesel/gasoline):
Estimated based on sample surveys related to the fuel use in model house demolition conducted by Sumitomo Forestry in 2006

(CO2 emissions during disposal (including transport))

∑(Amount of waste during demolition per household × Per unit emissions by volume reduction rate , disposal rate , recycling rate for each type of waste × Per unit emissions by type of waste or processing method) × Number of houses completed in the current fiscal year

* Amount of waste during demolition per household:
The amount of waste produced during demolition annually by Sumitomo Forestry Group for fiscal 2016 is calculated by converting the equivalent building weight of the standard plan (floor area:147m²) of Sumitomo Forestry for fiscal 2010

Category 15. Investments

∑ (Scope 1 and 2 emissions from companies the Group invests × Equity interest of Sumitomo Forestry Group)

* Scope 1 and 2 emissions are the public values from the company the Group invests or the values released in the Act on Promotion of Global Warming Countermeasures

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Sustainability Report