Material Issue 4: A Vibrant Work Environment Where a Diverse Workforce can Unharness Their Skills and Individuality

• Basic Policy
• Management of Material Issue 4
• Management of Each Target
• Toward the Future

Basic Policy

The Group promotes a free and open-minded corporate culture that respects diversity in accordance with Our Values. We are also committed to securing an appropriate balance between work and individual commitments such as caring for children and the elderly, maintaining a safe and healthy work environment, implementing regular education and training programs to prepare for disasters, accidents and so forth, as stipulated in the Sumitomo Forestry Group Code of Conduct established in 2017. Further, we are advancing development of a vibrant workplace where diverse human assets can be actively engaged without regard to gender, age, nationality, race, religion or disability.

• Contributions to the SDGs and Material Issues

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Management of Material Issue 4

Within our Mid-Term Sustainability Targets, our Material Issue 4 “a vibrant work environment where a diverse workforce can unharness their skills and individuality,” is broadly divided into four 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.

Impact on Society and the Environment

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Management of Each Target

Creating a Work Environment that Generates Diverse Ideas, Job Satisfaction and Vibrancy

* No figures are available until fiscal 2018 because employee satisfaction surveys were administered biennially until then. They have been implemented annually since fiscal 2019.

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

• Fair Employment and Benefits
• Communication with Employees

Securing Human Resources by Training Younger Workers and Utilizing Older Ones

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

• Fair Employment and Benefits
• Communication with Employees

Reducing Long Work Hours Through Work Style Reforms

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

• Work-Life Balance

Eliminating Occupational Injuries

Specific steps based on issues and strategies	Indicators for Evaluation		Managing department	FY2019 target	FY2019 result	FY2019 value	FY2020 target	FY2021 target
Implement reciprocal safety audits and manufacturing department safety audits Share case studies and implement risk assessments	Number of serious occupational injuries (incidents) (four or more days of lost worktime)	Manufacturing sites (contractors and subcontractors)	Timber and Building Materials Division	0	9	△	0	0
		Plantation sites (contractors)	Environment and Resources Division	0	3	△	0	0
		New housing construction sites in Japan*	Housing and Construction Division	0	20	✕	0	0
		New housing construction sites outside Japan	Overseas Housing and Real Estate Division	0	9	△	0	0
	Number of occupational injuries (incidents) (requiring one to three days of lost worktime)	New Construction sites in Japan	Housing and Construction Division	0	19	✕	0	0

* Includes sole proprietorships

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

• Occupational Health and Safety Management
• Occupational Health and Safety on Construction Sites
• Occupational Health and Safety (Manufacturing Business)
• Occupational Health and Safety in the Forestry Business
• About symbol for Independent assurance

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Toward the Future

The Act on the Arrangement of Related Acts to Promote Work Style Reform was enforced in April 2019, which defines various policies on work style reform, such as setting an upper limit to overtime, and mandatory acquisition of five days of paid leave per year. With these reforms, the average paid leave taken by our employees increased to 11.5 days in fiscal 2019 from 10.1 days in the previous fiscal year. Our affiliated companies also increased the average paid leave taken.

We were also able to reduce overtime by 30.2%, further reducing from 24.9% in the previous fiscal year, compared to fiscal 2013. Our affiliated companies were also able to reduce overtime. We will continue to improve paid leave taken by employees and reduce overtime.

Sumitomo Forestry set a target of zero occupational injuries, but incidents occurred in each business sector in fiscal 2019. In particular, 20 serious occupational injuries (incidents), such as fall accidents, resulting in four or more days of lost worktime occurred on new housing construction sites in Japan. One occupational injury resulting in death also occurred at an overseas plant in January 2020.

In light of this incident, Sumitomo Forestry established the new Quality Control and Worker Safety Management Department directly under the President in April 2020 to strengthen the on-site quality and safety management system utilizing the ISO 9001 and ISO 45001. In the future, Sumitomo Forestry will continue to conduct safety patrols on construction sites, verify safety during quality inspections, and strengthen all initiatives toward zero occupational accidents throughout the entire Group.

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