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

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, disability or other factors.

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.

Targets of Material Issue 4

  1. Creating a work environment that generates diverse ideas, job satisfaction and vibrancy
  2. Securing human resources by training younger workers and utilizing older ones
  3. Reducing long work hours through work style reforms
  4. Eliminating occupational injuries

Impact on Society and the Environment

Targets of Material Issue 4 Impact (Influence)
  1. Creating a work environment that generates diverse ideas, job satisfaction and vibrancy
  • Eliminating gender discrimination in Japan, a nation facing the worst gender discrimination of developed countries
  • Enhancing corporate and social sustainability through innovation realized from diverse ideas
  1. Securing human resources by training younger workers and utilizing older ones
  • Securing better human resources as society at large faces an aging population with a falling birth rate and a declining workforce
  • Enhancing corporate value by improving work productivity
  • Realizing a diverse society
  1. Reducing long work hours through work style reforms
  • Securing better human resources as society at large faces an aging population with a falling birth rate and a declining workforce
  • Enhancing corporate value by improving work productivity
  • Realizing a diverse society
  1. Eliminating occupational injuries
  • Ensuring employee health by building a safe, secure workplace (higher satisfaction)

Page Top

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:✕

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

Specific steps based on issues and strategies Indicators for Evaluation Managing department FY2020 target FY2020 result FY2020 value FY2021 target
Promotion of women's participation and advancement in the workplace Percentage of female employees in management positions (%) Sumitomo Forestry Personnel Department 5.0 4.8* 5.5
Consolidated in Japan Personnel Department 6.7 7.1* 7.3
Improve employee satisfaction Employee satisfaction level (%) Sumitomo Forestry Personnel Department 81.0 80.1 85.0
Change in employee satisfaction level compared to base year (%) Consolidated in Japan Personnel Department 61.5 63.0 Compared to Fiscal 2019 Percentage Change
110

* As of December 31, 2020

Securing Human Resources by Training Younger Workers and Utilizing Older Ones

Specific steps based on issues and strategies Indicators for Evaluation Managing department FY2020 target FY2020 result FY2020 value FY2021 target
Develop human resources from a long-term perspective according to the revision of the evaluation system (April 2019) and evaluator training Three-year turnover rate among newly hired graduates (%) Sumitomo Forestry Personnel Department 15.6 17.7 15.0
Consolidated in Japan Personnel Department 10.2 20.6 12.9
Specific steps based on issues and strategies Indicators for Evaluation Managing department FY2020 target FY2020 result FY2020 value FY2021 target
Enhance training programs Training cost per employee (unit: 1,000 yen) Sumitomo Forestry Personnel Department 132 77
132
Consolidated in Japan Personnel Department 66 27
66
Total number of training participants (persons)* Sumitomo Forestry Personnel Department 13,000 9,105 × 13,000
Consolidated in Japan Personnel Department 15,700 16,659 16,176
Training time per employee (hours) Sumitomo Forestry Personnel Department 14.4 13.0 × 15.5

* 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
Implement year-initial interviews prior to full-term retirement Employment rate of people over 60 years old (including re-employment) (%) Sumitomo Forestry Personnel Department 82.0 91.9* 87.0
Consolidated in Japan Personnel Department 67.7 78.5* 78.0

* As of March 31, 2021

Reducing Long Work Hours through Work Style Reforms

Specific steps based on issues and strategies Indicators for Evaluation Managing department FY2020 target FY2020 result FY2020 value FY2021 target
Guidance for improvement to departments with low rates of paid-leave use Average paid leaves taken by employees (days)* Sumitomo Forestry Personnel Department 13.5 11.6 14.0
Consolidated in Japan Personnel Department 10.6 10.3 × 11.3

* 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 departments using flextime and internal mock inspections Average overtime working hour reduction rate compared to fiscal 2013 (%) Sumitomo Forestry Personnel Department ▲30.0 ▲38.7 ▲32.0
Average overtime working hour reduction rate compared to fiscal 2017 (%) Consolidated in Japan Personnel Department ▲9.9 ▲23.2 ▲11.3

Eliminating Occupational Injuries

Specific steps based on issues and strategies Indicators for Evaluation Managing department FY2020 target FY2020 result FY2020 value 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)*1
Manufacturing sites
(employees and contractors)
Timber and Building Materials Division 0 14 0
Plantation sites
(contractors)
Environment and Resources Division 0 4 0
New housing construction sites in Japan (contractors)*2 Housing and Construction Division 0 21 0
New housing construction sites outside Japan (contractors) Overseas Housing and Real Estate Division 0 5 0
Number of occupational injuries (incidents)
(requiring one to three days of lost worktime)*1
New housing construction sites in Japan (contractors) Housing and Construction Division 0 31 0

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

*2 Includes sole proprietorships

Page Top

Toward the Future

The Arrangement of Related Acts to Promote Work Style Reform in Japan was enacted 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. In fiscal 2020, we not only had to respond to the coronavirus disease (COVID-19) but also stay-at-home orders issued by national and local governments. This resulted in only slightly higher average paid leave taken by employees of 11.6 days compared to the previous fiscal year (11.5 days). Our affiliated companies had the same results.

We were also able to reduce overtime by 38.7%, a dramatic reduction from 30.2% 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 2020. In particular, serious occupational injuries (incidents), such as heat stroke and fall accidents, increased, resulting in 21 incidents requiring four or more days of lost work time on new housing construction sites in Japan. 13 incidents requiring four or more days of lost work time resulting from accidents such as forklift accidents also occurred at overseas manufacturing sites.

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, we will continue to strengthen our Group initiatives to manage occupational accidents, enhance safety education and expand support across each division and at affiliate companies toward zero occupational accidents throughout the entire Group.

Page Top

Sustainability Report