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

  1. Management forests while mitigating climate change and protecting biodiversity
  2. Expanding the utilization of sustainable forest resources
  3. Building sustainable supply chains

Impact on Society and the Environment

Targets of Material Issue 1 Impact (Influence)
  1. Management Forests while mitigating climate change and protecting biodiversity
  • Contributing to climate change measures through CO2 fixation
  • Contributing to the protection of rare species and other conservation of biodiversity
  • Contributing to forest industry and regional revitalization by heightening forest sustainability
  1. Expanding the utilization of sustainable forest resources
  • Securing seedlings for replanting and promoting circular use of forest resources from cutting to replanting
  • Contributing to greater biomass power generation (renewable energy supply) in Japan
  • Heightening regional resilience
  • Contributing to forest industry and regional revitalization by utilizing domestic timber
  • Enhancing standardization, awareness, and added value of sustainable timber and products as well as certified timber
  1. Building sustainable supply chains
  • Improving the sustainability of timber products imported from overseas and domestic housing materials (Resolve the environmental and human rights issues/ Coexisting and co-prospering with society)

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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
Maintain and expand the area of certified forests Domestic and overseas certified forest area (ha) Environment and Resources Division 220,417 221,101 222,144 221,467

* Rating
Achieved:◯ Not achieved but improved from previous year :△ Not achieved and declined compared to previous year:✕

Expanding the Utilization of Sustainable Forest Resources

Specific steps based on issues
and strategies
Indicators for Evaluation Managing department FY2019
target
FY2019
result
FY2019
value
FY2020
target
FY2021
target
Expand domestic and overseas forest plantation area with seedlings produced Area of forest plantation with in-house produced seedlings (ha) Environment and Resources Division 6,553 7,770 7,456 7,920
Seedlings supplied
(unit: 10 Thousand)
Environment and Resources Division Timber and Building Materials Division 511 414 509 726
Expand the volume of chip and pellet fuel used Amount of biofuel material used (such as wood chips and pellets) (t)* Environment and Resources Division Timber and Building Materials Division 1,188,010 1,112,224About symbol for Independent assurance 1,217,541 1,363,930
Increase quantity of sustainable timber and timber products handled and used Percentage of sustainable timber and timber products handled (%) Timber and Building Materials Division 89.0 89.8About symbol for Independent assurance 93.0 100
Rate of sustainable timber used as primary building material(%) Housing and Construction Division 80.0 80.6 100 100

* 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

Specific steps based on issues
and strategies
Indicators for Evaluation Managing department FY2019
target
FY2019
result
FY2019
value
FY2020
target
FY2021
target
Update the Sustainability procurement survey form and formulate survey plan Sustainability procurement survey implementation rate*1 in the supply chain of the domestic housing department (%) Housing and Construction Division 65.0 86.0About symbol for Independent assurance 88.0 80.0
Sustainability procurement survey implementation rate*2 of suppliers of imported timber (%) Timber and Building Materials Division 100 100About symbol for Independent assurance 100 100

*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:✕

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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.

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Sustainability Report