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

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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:✕

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 FY2020 target FY2020 result FY2020 value FY2021 target
Reduce greenhouse gas emissions Greenhouse gas emissions (t-CO2e)*
Percentage change from fiscal 2017
Each department 371,855
+0.6%
370,526
+0.2%
402,768
+8.9%
Carbon efficiency
(t-CO2e/million yen)
Sustainability Department 0.331 0.324 0.318

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

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

Specific steps based on issues and strategies Indicators for Evaluation Managing department FY2020 target FY2020 result FY2020 value FY2021 target
Promotion of industrial waste separation Recycling rate at new housing construction sites (%)*1 Housing and Construction Division 97.7 95.2 98.0
Recycling rate at housing demolition sites (%)*2
(as of start of demolition work on main structure)
98.0 99.0 98.0
Recycling rate at the work sites of the renovation business unit*3 (%) 82.0 72.3 84.0
Recycling rate at the work sites of the power generation business unit Environment and Resources Division 79.3 91.0 56.5
Recycling rate at overseas manufacturing plants (%) Timber and Building Materials Division 98.2 98.4 98.0
Recycling rate at domestic manufacturing plants (%) Timber and Building Materials Division
Housing and Construction Division
Environment and Resources Division
99.2
99.1 99.5
Recycling rate of Lifestyle Service Business, etc.*4 (%) Lifestyle Services Division, etc. 93.1 83.7 98.0

*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.

* The period for the above recycling rates in the fiscal 2020 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
Waste reduction
Promote zero-emissions
Industrial waste final disposal amount (t)
(Compared to 2017 Percentage Change)*
Sustainability Department 56,632
(-11.0%)
40,548
(-36.3%)
54,087
(-15.0%)
Total industrial waste generated (waste generated per detached house) (kg/structure)
(Compared to 2017 Percentage Change)
Housing and Construction Division 2,950
(-11%)
2,977
(-10%)
2,730
(-18%)

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

Conserving and Effectively Utilizing Water Resources

Specific steps based on issues and strategies Indicators for Evaluation Managing department FY2020 target FY2020 result FY2020 value FY2021 target
Proper management of water resources Water use volume (unit: 1,000m³)* Sustainability Department 2,824 or less 2,851 3,011 or less

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

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Toward the Future

Sumitomo Forestry Group had 370,526t-CO2e in total greenhouse gas emissions in fiscal 2020, which achieved our target of 371,855t-CO2e. The main factors were the 8,879t-CO2e reduction in the amount of emissions due to revision of the estimation method in the overseas affiliate companies of the Overseas Housing and Real Estate Division compared to fiscal 2019 and a decline in production volume mainly in overseas manufacturing compared to fiscal 2019 caused by the impact of the coronavirus disease (COVID-19).

Our recycling rate of industrial waste on new housing construction sites was 95.2%, which did not achieve our 97.7% target. We will further reduce industrial waste emissions and improve our recycling rate by quickly advancing our fiscal 2019 initiatives in precut Lattice Panels, roofing, and external wall materials throughout Japan.

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Sustainability Report