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 deforestation as one of the causes of climate change, demand for management of sustainability in procurement is on the rise. Amid these circumstances, the Sumitomo Forestry Group has declared the goal of handling all of its timber and timber products to be sustainable by the end of 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

Ratings in the table below
Achieved:◯ Not achieved but improved from previous year:△ Not achieved and declined compared to previous year:✕

Management Forests While Mitigating Climate Change and Protecting Biodiversity

Specific steps based on issues and strategies Indicators for Evaluation Managing department FY2020 target FY2020 result FY2020 value FY2021 target
Maintain and expand the area of certified forests Domestic and overseas certified forest area (ha) Environment and Resources Division 222,144 221,644* 221,467

* As of December 31, 2020

Expanding the Utilization of Sustainable Forest Resources

Specific steps based on issues and strategies Indicators for Evaluation Managing department FY2020 target FY2020 result FY2020 value 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 7,456 3,263 7,920
Seedlings supplied (unit: 10 Thousand)* Environment and Resources Division
Timber and Building Materials Division
509 213 726

* The period for FY2020 results is from January 1 to December 31, 2020.

Specific steps based on issues and strategies Indicators for Evaluation Managing department FY2020 target FY2020 result FY2020 value FY2021 target
Expand the volume of chip and pellet fuel used Amount of biofuel material used (such as wood chips and pellets) (t)*1 Environment and Resources Division
Timber and Building Materials Division
1,217,541 1,465,901*2 1,363,930

*1 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.

*2 The period for FY2020 results is from January 1 to December 31, 2020.

Specific steps based on issues and strategies Indicators for Evaluation Managing department FY2020 target FY2020 result FY2020 value FY2021 target
Increase quantity of sustainable timber and timber products handled and used Percentage of sustainable timber and timber products handled (%) Timber and Building Materials Division 93.0 94.6* 100
Percentage of sustainable timber used as primary building material (%) Housing and Construction Division 100 95.8* 100

* The period for FY2020 results is from April 1 to December 31, 2020.

Building Sustainable Supply Chains

Specific steps based on issues and strategies Indicators for Evaluation Managing department FY2020 target FY2020 result FY2020 value 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 88.0 97.3*3 80.0
Sustainability procurement survey implementation rate*2 of suppliers of imported timber (%) Timber and Building Materials Division 100 100*3 100

*1 Surveys target suppliers that we worked with in the previous fiscal year, and the implementation rate is calculated as a rate made up of the purchasing amount of the previous fiscal year for each company subject to the survey

*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 the fiscal year indicated

*3 The survey period for FY2020 results is from April 1 to December 31, 2020.

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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 2020 showed a favorable shift upward to 94.6% against our target of 93.0%. We aim to reach 100% procurement of sustainable timber and timber products in 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 97.3% 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