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 Which Contribute to Local Communities in Indonesia

Support for Children Through the KTI Educational Foundation

PT. 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 2019, the foundation provided school supplies to orphans, English learning assistance to students living near the plant and other such support as well as IDR 45,480,800 (approx. 350,000 yen) in financial support.

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 Timeber 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 and 680,000 seedlings in fiscal 2019.

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

Fire Prevention Response Team

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

Distribution of Free Seedlings and Buy Back Guarantee of Logs

Respect for Local Tradition and Culture at Overseas Plantations

The plantation forest operations in Indonesia communicate with the local residents and associations to gain a deep understanding of the local traditions and culture and conduct safety festivals together with the local people when starting operations in accordance with those traditions. Sumitomo Forestry also engages in efforts to respect the traditions and cultures of local communities, such as capital support for traditional events held by local residents.

Village meeting

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

PT. 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.

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 in addition to medical support which includes 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.

Support for stationary at elementary schools in operating areas

Educational Environment at the Elementary School

Ladakh Water Level Management Infrastructure

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Building Social Infrastructure in Papua New Guinea

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.

This clinic is the most advanced medical clinic within a 60 km radius and greatly contributes to the local community in a country where medical facilities are lacking, such as providing space for visiting Doctors Without Borders and the WHO program to eradicate elephantiasis.

Full View of Open Bay Clinic

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

A large-scale charity medical event was also held in fiscal 2018 at the Open Bay Clinic built and operated by OBT to offer local citizens a place to be examined properly for those that cannot visit major town to receive such examinations with the cooperation of the health department of the province. The medical staff of over 40 professionals brought together from around the world examined for diagnosis for approximately 500 people over the three days of this event.

Diagnosing and Treating Adults and Children Alike

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Social Contribution Through the Housing Business in the United States and Australia

The Sumitomo Forestry Group engages in social contribution activities through the housing business in the United States and Australia.

In the United States, 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 these harsh 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

Crescent Communities, another company in the United States, 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.

In 2019, 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

Henley Properties builds and sells detached homes in Australia. The Company held the Good Friday Charity Auction in April 2019 whereby the money raised from the sales of a spec home, built with cooperation of a housing lot developer, materials supplier and other business partners, is donated. 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 Clyde North located in south east Melbourne. Henley Properties donated the entire 761,000 Australian dollars (approx. 54 million yen) earned from the charity auction this year to a children's hospital. Since these efforts began in 1993, more than 15.4 million Australian dollars (1,093.4 million yen) in total donations have been provided through the auction to be used for the medical costs of children suffering from intractable diseases.

Charity auction

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Regional Contribution Activities in New Zealand

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

Supporting the Activities to Protect the Kea Indigenous to New Zealand

Sumitomo Forestry donated to the Kea Conservation Trust, an organization that protects the kea (large parrot species) indigenous to New Zealand. Kea is the only parrot in the world to live in mountainous areas, and it is considered one of the smartest species of bird on the planet. This species of parrot is protected as an endangered species and adored by the people of New Zealand. These birds are seen from time to time in the TPF forests. We report any sightings to the relevant agencies and ensure their protection. This donation will be used to train kea protection officers.

Kea (Large Parrot Species)

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.

Every year since fiscal 2017, TPF has been donating activity capital as a sponsor to the Nelson Marlborough Rescue Helicopter Trust. 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

Pilot and paramedics with the Nelson Marlborough Rescue Helicopter Trust Helicopter

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Support for the Next Generation in the United States Through Joint Efforts with Local Residents

The Canyon Creek, which manufactures and sells wooden cabinets in the United States, continually makes contributions to the region from 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.

Trains and Other Donated Wooden Toys

Local Charity Organization Members Making Toys

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Construction of Monastic Schools in Myanmar

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 have completed six monastic-style schools as of January 2020 thanks to the donations of companies and individuals who see the benefit. Many of these schools were old and leaked during the monsoon season before they were rebuilt but have now transformed into two-story schoolhouses built from steel and concrete. 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.

Moving forward, the Myanmar Monastic School Support Team will continue to provide support with a goal of building one school per year.

School before rebuilding

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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Support and Cooperation in Nepal Manaslu Forest Restoration Project with Planting Technologies

The certified non-profit Peak Aid led by alpinist Ken Noguchi launched the Nepal Manaslu Forest Restoration Project to revitalize the degraded forests in Sama, Nepal located at an altitude of 3,600 meters where he had been an active alpinist. Sumitomo Forestry has been providing support to the trial reforestation activities since 2015. In the first year, we investigated the soil of the land planned for garden vegetation, created a field of rice seedlings, selected plant and tree species and collected seeds as well as made other preparations to cultivate seedlings. In the second year, we conducted surveys of the soil and compost that can be collected on-site and furthered seedling preparations. In the third year, we planted the seedlings and drafted a plan for surveys to assess the percentage that take root.

Although there were delays in the process due to the impact of natural disasters and other factors, plant the cultivated seedlings in 2018, the fourth year of the trial activities, and confirmed those seedlings were able to take root without any problems in 2019. Despite the fact that a tremendous undertaking was anticipated in both time and effort for reforestation at high altitudes where the environment is harsh and vegetation growth is slow, the project was successful thanks to the cooperation of local project members centered around experienced people who have been involved with planting efforts for over 30 years on the Himalayan route.

In the future, Peak Aid plans to continue this effort with the aim of plaiting 100,000 trees in the Himalayas. Sumitomo Forestry will offer technical advice from Japan while continuing to closely watch these planting activities.

Approx. Two-Year Old Seedlings Ready for Planting

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