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- Material Issue 1: Ongoing Timber and Materials Procurement that Considers Sustainability and Biodiversity
Material Issue 1: Ongoing Timber and Materials Procurement that Considers Sustainability and Biodiversity
Basic Policy
With businesses centered on wood, Sumitomo Forestry Group promotes sustainable forest management and timber procurement both domestically and abroad. In procuring wood and timber products, we engage in management under specified numerical targets, placing it as an important theme of sustainability that encompasses environmental aspects such as climate change measures and biodiversity conservation as well as social aspects such as human rights.
With increase in concern about forest depletion as one of the causes of climate change, demand for sustainability in procurement is on the rise. Amid these circumstances, Sumitomo Forestry Group has declared the goal of handling all of its timber and timber products to be sustainable by fiscal 2021. We have heightened our evaluation criteria for sustainable timber procurement as we work to step up our confirmation system. As we continue to contribute to solving social issues, we have defined KPI to establish timber procurement that achieves both forest resource utilization and biodiversity conservation.
Management of Material Issue 1
Material Issue 1 of our Mid-Term Sustainability Targets is “Ongoing timber and materials procurement that considers sustainability and biodiversity.” We have derived three targets from this issue, which we incorporate into our management practices through inclusion in annual activity policy and measures for each department. We also assess the impacts that the material issue has on society and the environment.
Targets of Material Issue 1
- Management forests while mitigating climate change and protecting biodiversity
- Expanding the utilization of sustainable forest resources
- Building sustainable supply chains
Impact on Society and the Environment
Targets of Material Issue 1 | Impact (Influence) |
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Management of Each Target
Management Forests While Mitigating Climate Change and Protecting Biodiversity
Specific steps based on issues and strategies |
Indicators for Evaluation | Managing department | FY2019 target |
FY2019 result |
FY2019 value |
FY2020 target |
FY2021 target |
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Maintain and expand the area of certified forests | Domestic and overseas certified forest area (ha) | Environment and Resources Division | 220,417 | 221,101 | 〇 | 222,144 | 221,467 |
* Rating
Achieved:◯ Not achieved but improved from previous year :△ Not achieved and declined compared to previous year:✕
Expanding the Utilization of Sustainable Forest Resources
* Includes Japan Bio Energy Co., Ltd., Okhotsk Bio Energy Co. Ltd., Michinoku Bio Energy Co., Ltd., and the Sumitomo Forestry Timber and Building Materials Business.
* Rating
Achieved:◯ Not achieved but improved from previous year :△ Not achieved and declined compared to previous year:✕
Building Sustainable Supply Chains
*1 Rate accounts for the purchasing ratio of the suppliers surveyed
*2 Rate accounts for the number of suppliers implementing sustainability surveys versus the number of suppliers encompassed in the Timber Procurement Committee timber procurement due diligence for this fiscal year
* Rating
Achieved:◯ Not achieved but improved from previous year :△ Not achieved and declined compared to previous year:✕
Toward the Future
Sumitomo Forestry conducts periodic reviews to confirm sustainability at all procurement suppliers for timber and timber products we directly import from overseas. The percentage of sustainable timber and timber products handled in fiscal 2019 showed a favorable shift upward to 89.8% against our target of 89.0%. We aim to reach 100% procurement of sustainable timber and timber products by fiscal 2021. The sustainability procurement survey implementation rate in the supply chain of the domestic housing department which was set as a new target in fiscal 2019, was 86% out of the amount of material purchases from suppliers. We aim to build and expand the scope of sustainable supply chains in the future.