Material Issue 3: The Reduction of the Environmental Impact of Our Business Activities

Basic Policy

With the impact of climate change becoming increasingly problematic on a global scale, companies are being asked to reduce emission of greenhouse gas that cause global warming and to implement energy saving initiatives.

In consideration of the environmental impact of these operations, the Sumitomo Forestry Group fully recognizes the importance of reducing greenhouse emissions and taking other measures to combat climate change through the promotion of strict energy-saving activities, renewable energy use and other efforts. With a mid- to long-term perspective of the future, in 2018, we established greenhouse gas emission reduction goals for 2030, and were certified as SBT* in July 2018. Furthermore, we joined the RE100 international initiative with the goal of transition of power generation fuel to 100% renewable energy for power used in business activities of Sumitomo Forestry Group and power generation business by 2040.

In addition, to reduce environmental burden and more effectively utilize natural resources, we are promoting the reduction, reuse and recycling of industrial waste.

* Science Based Targets. These targets are set for companies to achieve reduction goals in-line with scientific knowledge to limit the raising average temperature around the world to less than 2°C.

Management of Material Issue 3

Within our Mid-Term Sustainability Targets, our Material Issue 3 “the reduction of the environmental impact of our business activities” is broadly divided into three goals, 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 3

  1. Reducing greenhouse gas emissions toward creating a decarbonized society (SBT: Scope 1 & 2)
  2. Protecting resources, reducing the generation of waste and achieving zero emissions
  3. Conserving and effectively utilizing water resources

Impact on Society and the Environment

Targets of Material Issue 3 Impact (Influence)
  1. Reducing greenhouse gas emissions toward creating a decarbonized society (SBT: Scope 1 & 2)
  • Contributing to the reduction of the environmental impact and solutions to climate change by achieving SBT and RE100
  1. Protecting resources, reducing the generation of waste and achieving zero emissions
  • Protecting resources and reducing the environmental impact by advocating for recycling and zero emissions
  1. Conserving and effectively utilizing water resources
  • Solutions to water issues
  • Improving environmental awareness of consumers

Page Top

Management of Each Target

Reducing Greenhouse Gas Emissions Toward Creating a Decarbonized Society (SBT: Scope 1 & 2)

Specific steps based on issues
and strategies
Indicators for Evaluation Managing department FY2019
target
FY2019
result
FY2019
value
FY2020
target
FY2021
target
Reduce greenhouse gas emissions Greenhouse gas emissions
(t-CO2e)
Percentage change from fiscal 2017
Each department 380,356
+2.9%
380,641About symbol for Independent assurance
+2.9%About symbol for Independent assurance
371,855
+0.6%
402,768
+8.9%
Carbon efficiency
(t-CO2e/million yen)
Sustainability Department 0.341
(0.275)*
0.345
(0.283)
0.331
(0.279)
0.318
(0.264)

* Figures in parenthesis are sales before applying accounting standards related to revenue recognition

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

Protecting Resources, Reducing the Generation of Waste and Achieving Zero Emissions

Specific steps based on issues
and strategies
Indicators for Evaluation Managing department FY2019
target
FY2019
result
FY2019
value
FY2020
target
FY2021
target
Promotion of industrial waste separation Recycling rate at new housing construction sites(%)*1 Housing and Construction Division 96.1 94.3About symbol for Independent assurance 97.7 98.0
Recycling rate at housing demolition sites (%)*2
(as of start of demolition work on main structure)
98.0 99.9 98.0 98.0
Recycling rate at the work sites of the renovation business unit*3 (%) 80.0 74.2About symbol for Independent assurance 82.0 84.0
Recycling rate at the work sites of the power generation business unit Environment and Resources Division 52.5 81.6About symbol for Independent assurance 79.3 56.5
Recycling rate at overseas manufacturing plants (%) Timber and Building Materials Division 97.9 97.5About symbol for Independent assurance 98.2 98.0
Recycling rate at domestic manufacturing plants (%) Timber and Building Materials Division
Housing and Construction Division
Environment and Resources Division
99.5
99.0About symbol for Independent assurance 99.2
99.5
Recycling rate of Lifestyle Service Business, etc.*4 (%) Lifestyle Services Division, etc. 95.2 90.8 93.1 98.0
Waste reduction
Promote zero-emissions
Industrial waste final disposal amount (t)
(Compared to 2017 Percentage Change)
Sustainability Department 58,860
(▲7.5%)
55,515
(▲12.8%)
56,632
(▲11.0%)
54,087
(▲15.0%)
Total industrial waste generated (waste generated per detached house) (kg/structure)
(Compared to 2017 Percentage Change)
Housing and Construction Division 3,020
(▲9%)
3,002
(▲10%)
2,950
(▲11%)
2,730
(▲18%)

*1 Includes new housing construction sites of the Housing and Construction Division, Sumitomo Forestry Landscaping, as well as Sumitomo Forestry Home Engineering.

*2 Includes construction materials specified under the Construction Material Recycling Law (concrete, asphalt-concrete, and wood waste)

*3 Includes Sumitomo Forestry Home Tech renovation sites but excludes hard-to-recycle debris and asbestos

*4 Includes emissions associated with Lifestyle Service Business, housing-related materials sales, and other operational locations.

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

Conserving and Effectively Utilizing Water Resources

Specific steps based on issues
and strategies
Indicators for Evaluation Managing department FY2019
target
FY2019
result
FY2019
value
FY2020
target
FY2021
target
Proper management of water resources Water use volume (unit: 1,000m³) Sustainability Department 2,981 or less 2,936 2,824 or less 3,011 or less

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

Page Top

Toward the Future

Sumitomo Forestry Group had 380,641t-CO2e in total greenhouse gas emissions, which did not reach our target of 380,356t-CO2e. However, we were able to reduce emissions 972t-CO2e compared to fiscal 2018. Mombetsu Biomass Power Generation in particular contributed greatly to the reduction of greenhouse gas emissions overall by bringing down the mixed fuel burning ratio of coal used as a raw material to 16% from 20% in fiscal 2017.

Our recycling rate of industrial waste in the domestic housing department was 94.3%, which did not achieve our 96.1% target. However, this recycling rate did improve from 94.2% in fiscal 2018. In fiscal 2020, we will further reduce industrial waste emissions and improve our recycling rate by advancing precut Kizure Panels, roofing, and external wall materials.

Page Top

Sustainability Report