The Sumitomo Forestry Group formulates separate policies for each issue related to sustainability management, and carries out initiatives according to those policies.

Sumitomo Forestry Group Environmental Policy

Through our experience nurturing forests since our founding, Sumitomo Forestry Group has learned to appreciate the wonders of wood and the importance of nature. As a corporate entity with a close affinity to nature, we will pursue business activities that balance both environmental and economic interests and contribute to a sustainable society.

  1. Develop business operations centered on wood and forests
    We will cultivate forests and their ability to preserve and enhance the rich ecosystem to protect biodiversity, actively utilize timber resources and create new corporate value.
  2. Develop and offer environmentally conscious products and services
    We will develop and sell products and services that are environmentally conscious throughout the entire product lifecycle.
  3. Minimize and improve environmental impact
    To minimize and improve environmental impact, we will employ procurement practices that prevent environmental pollution and climate change and promote the effective utilization of natural resources.
  4. Ensure strict legal compliance
    We will adhere to all environmental laws, rules and regulations, global standards, voluntary standards and accords with stakeholders.
  5. Make continual improvements to our environmental management system
    We will accurately access environment-related risks associated with our business activities and with a mid-to-long-term outlook, set and work to fulfill yearly environment goals. In addition, we will regularly evaluate our environmental management system and make continual improvements
  6. Promote environmental education
    We will provide environmental education for all parties involved in Sumitomo Forestry Group's business operations and encourage voluntary environmental efforts.
  7. Pursue active communication
    We will actively disclose information about our environmental policies and initiatives and pursue activities that convey the wonders of trees and forests and the importance of nature.

President and Representative Director Toshiro Mitsuyoshi

Policy on Biodiversity Conservation in Company-Owned Forests in Japan (excerpt)

  1. Diversity of ecosystems
    We will properly manage strictly protected areas designated under the Natural Parks Law of the Japanese government and other legislation in a manner stipulated by the law. In other areas, we will ensure continuity of forests by limiting the area of forest harvested, particularly when clear cutting is conducted.
  2. Diversity of species
    We will work to prevent a decline in the number of species existing in natural forests by refraining from expansive planting projects and other extreme activities involving the replacement of species that would have a major impact on existing ecosystems. We will also give the utmost consideration to the protection of rare flora and fauna in all operations, making reference to the Sumitomo Forestry Red Data Book.
  3. Genetic diversity
    Genetic variation and the maintenance of populations to support them will become issues in the future. However, analysis is complicated and therefore we will closely watch monitoring activities carried out by government and public institutions and their findings.

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Sumitomo Forestry Group Procurement Policy

The Sumitomo Forestry Group utilizes wood as a renewable natural resource in its business operations. To contribute to a sustainable society, we are committed to procurement activities that take into account economic, environmental and societal interests and comply with the following policy:

  1. Procurement based on legal and highly reliable supply chains
    Our procurement activities will strictly adhere to all relevant laws, regulations and societal norms, and be built on mutual understanding and trust with our business partners. Furthermore, to provide the highest quality products and services, we will work with our business partners to ensure that our procurement takes place within a sound and fair supply chain.
  2. Procurement based on fair opportunity and competition
    We will provide all our suppliers, both Japanese and foreign, a fair opportunity for business. Selection of our business partners will be based on a comprehensive evaluation of the company’s reliability and technological expertise, the product’s quality, economic efficiency, delivery date and environmental performance, and the company’s CSR (Corporate Social Responsibility) initiatives, such as advocacy of basic human and worker rights, anticorruption efforts and so on.
  3. Procurement of sustainable timber and wood products
    Wood is a renewable natural resource. To actively utilize it, we will work with our business partners on the following initiatives related to the procurement of timber and wood products:
    • Procure timber from forests that are sustainably managed
    • Work to improve the traceability of procured timber and wood products
    • Strictly adhere to the laws and regulations of the countries and regions we log in, protect biodiversity and forests with high conservation value, and respect the cultures, traditions and economies of regions that coexist in harmony with forests.
  4. Pursue active communication
    To ensure the transparency of our procurement efforts, we will disclose information appropriately. In addition, we will communicate with our stakeholders to further improve our procurement activities.

President and Representative Director Toshiro Mitsuyoshi

Green Procurement Guidelines (extract)

Evaluation Items

①. Corporate activity assessment (evaluation of sustainability initiatives)

a. Environmental aspects

  1. Formulate policies related to environmental symbiosis.
  2. Set up departments to promote environmental symbiosis and appoint managers.
  3. Raise awareness of policies related to environmental symbiosis among employees.
  4. Confirm understanding of and compliance with environmental laws and regulations related to business operations.
  5. Promote proper use of water resources and measure the amount of use.
  6. Store, handle and process any hazardous chemical substances (including specified chemical substances, radioactive materials, and biological substances) used by the Group in accordance with a management manual, laws, and any other relevant regulations.
  7. Properly manage and process waste in accordance with laws and regulations.
  8. Promote proper use of energy and measure greenhouse gas emissions.
  9. Formulate greenhouse gas reduction plans.
  10. Make every effort to protect biodiversity and the ecosystem.

b. Social aspects

(a) Overall Corporate Social Responsibility (CSR)

  1. Formulate policies and standards for Corporate Social Responsibility (CSR) initiatives.
  2. Establish departments to promote Corporate Social Responsibility (CSR) initiatives and appoint managers.
  3. Conduct employee education and training about Corporate Social Responsibility (CSR) policies and standards.

(b) Human Rights

  1. Formulate policies and standards related to human rights.
  2. Establish departments to promote human rights initiatives and appoint managers.
  3. Conduct employee education and training about human rights policies.
  4. Prohibit all forms of harassment and raise internal awareness.
  5. Prohibit forced labor and child labor and raise internal awareness.
  6. Properly manage employee work hours regulated by law.
  7. Pay adequate wages to employees according to the minimum wages established by law.
  8. Establish a system for employees to report any harassment, physical punishment or other abuse anonymously.
  9. Prohibit all discrimination whether based on race, age, religion, nationality or gender and fully raise internal awareness.
  10. Ensure employees have freedom of association and collective bargaining rights in accordance with laws and regulations.
  11. Provide human resource development opportunities fairly to all employees, such as occupational skill development and training.

(c) Occupational health and safety

  1. Formulate policies and standards related to occupational health and safety.
  2. Establish departments to promote occupational health and safety initiatives and appoint managers.
  3. Conduct employee education and training about occupational health and safety policies.
  4. Strive to maintain a safe and healthy work environment.
  5. Properly manage the physical and mental health of employees as well as occupational safety, such as reducing occupational accidents and diseases.
  6. Put in place measures to ensure employee safety in anticipation of natural disasters and other emergency situations and fully raise internal awareness.

(d) Ethic

  1. Prohibit bribery, embezzlement and other acts of corruption and fully raise internal awareness.
  2. Raise internal awareness to protect intellectual property in accordance with laws, regulations and international rules.
  3. Put in place whistleblowing mechanisms for employees and suppliers to report any legal violations.
  4. Formulate responsible procurement policies.
  5. Prohibit abuse of superior bargaining positions, encourage fair and free competition, and fully raise internal awareness.
  6. Never tolerate influence from anti-social forces with a resolute attitude.

(e) Information security

  1. Collect and use personal information only within the scope agreed upon in advance and properly manage said personal information to prevent any informational leaks or unauthorized use.
  2. Use the utmost caution to properly manage the handling of confidential information received from third-parties.
  3. Put in place information security measures on computers and networks.

(f) Product safety

  1. Strive to ensure and improve quality and safety when supplying products and services to markets.

(g) Supply chain

  1. Require procurement suppliers to emphasize initiatives related to human rights and other social aspects as well as environmental aspects.

(h) Social contributions

  1. Build good relationships with and promote activities to contribute to local communities.

②. Product assessment

a. Common items

(a) Requirements

  1. Prohibit use of chemical substances restricted in Attachment 1, “Sumitomo Forestry Restricted Chemical Substance List.”
  2. Never leach hazardous materials during construction or use.
  3. Never produce chemical or other hazardous fine particles during construction or use.
  4. Never produce sulfur oxide or other hazardous gases during incineration.

(b) Initiatives

  1. Prohibit use of vinyl chloride and styrene foam in packaging materials.
  2. Limit use of packaging material to the bare minimum (strive to reduce packaging materials).
  3. Incorporate measures to sort by material in any composite products for easy waste disposal.
  4. Make component and material replacements easy to extend the lifespan of assembled products.
  5. Clarify maintenance programs (procedures and periods for inspections, repairs and part replacements).
  6. Make reuse or recycling after use possible.
  7. Make reuse or recycling of package materials possible.
  8. Use processes and materials to lengthen the lifespan of products.

Sumitomo Forestry Group Occupational Health and Safety Policy

Based on the fundamental concept of “SAFETY FIRST,” the Sumitomo Forestry Group seeks to create a thriving workplace by maintaining a healthy and safe work environment.

  1. Full employee participation in health and safety initiatives
    All employees of our Group’s operations shall consciously participate in health and safety initiatives.
  2. Thorough compliance
    We shall strictly comply with all laws, ordinances, safety standards and other rules related to occupational health and safety.
  3. Reducing risk and creating a thriving workplace
    We shall identify hidden risks in the work environment and continuously make improvements to create a thriving workplace.
  4. Securing safety with state-of-the-art technologies and labor-saving measures
    We shall create a safe workplace by actively promoting the use of state-of-the-art technologies and labor-saving measures that will help address personnel shortages and technical transfer issues.
  5. Nurturing a culture of mutual respect
    We shall nurture a culture where everyone respects both the processes and the results of health and safety initiatives to increase motivation to pursue them.
  6. Developing human resources through health and safety training programs
    We shall provide all employees health and safety training and we shall actively pursue initiatives to develop human resources who will take on the responsibility of creating a thriving workplace.
  7. Promoting active communication
    Through the active pursuit of mutual dialogue, including with stakeholders, we shall build good relationships that help ensure a sense of psychological security.

President and Representative Director Toshiro Mitsuyoshi

Sumitomo Forestry Group Quality Policy

Through the pursuit of “ZERO DEFECTS” and the implementation of new initiatives, the Sumitomo Forestry Group seeks to provide reliable products and services that bring joy to our customers.

  1. Full employee participation in quality enhancement
    All employees of our Group operations shall consciously strive to enhance quality with an understanding that our products and services must be of the highest standards.
  2. Improving customer satisfaction
    We shall identify quality risks and continuously refine processes and rules to improve customer satisfaction.
  3. Thorough compliance
    We shall fulfill customer expectations and strictly comply with all applicable laws, regulations, voluntary standards and other rules.
  4. Promoting digitalization and labor-saving measures
    To respond to rapidly changing societal structures, we shall actively promote digitalization and the implementation of labor-saving measures to reduce workloads and raise quality.
  5. Developing human resources who will maintain and enhance quality
    Through educational programs related to maintaining and enhancing quality, we shall ensure that our know-how, which is our asset, is passed on to the next generation.
  6. Promoting active communication
    We shall effectively utilize our structures and systems to actively pursue communication with our customers and all other stakeholders.

President and Representative Director Toshiro Mitsuyoshi

Sumitomo Forestry Group Human Rights Policy

The Sumitomo Forestry Group respects the human rights of all people involved in our Group’s operations and considers the respect for human rights a basic principle in all our activities. This thinking is rooted in Sumitomo’s Business Spirit, which places prime importance on fairness and integrity for the good of society.

The Sumitomo Forestry Group Human Rights Policy (hereinafter, this Policy) has been formulated to further clarify the Group’s thinking regarding the respect for human rights and to complement the Group’s Corporate Philosophy, Action Guidelines, Code of Conduct, Procurement Policy and others.

  1. A commitment to respect human rights
    Based on the United Nations' Guiding Principles on Business and Human Rights, the Sumitomo Forestry Group respects human rights as defined by such international norms as the World Human Rights Declaration, the International Covenants on Human Rights (the International Covenant on Civil and Political Rights as well as the International Covenant on Economic, Societal and Cultural Rights), and the International Labor Organization (ILO) Declaration on Fundamental Principles and Rights at Work. The Group also strictly complies with all related laws in each of the countries it conducts business in.
    In countries and regions that diverge from these laws and international norms, the Group strives to the greatest extent possible to undertake and prioritize initiatives that respect international norms.
  2. Scope of application
    This Policy applies to Sumitomo Forestry Co., Ltd., and its consolidated subsidiaries.
    Furthermore, the Group asks all its business partners and other parties affiliated with the Group’s operations to respect and not infringe human rights based on this Policy.
  3. Measures related to the respect for human rights
    • Human rights due diligence
      The Sumitomo Forestry Group has created a human rights due diligence system, has incorporated it as a necessary process of our operations and applies it in an ongoing manner.
      Human rights due diligence evaluates and identifies potential and actual human rights risks and takes measures to prevent or reduce those risks.
    • Relief measures
      If a Sumitomo Forestry Group operation has been found to have directly caused or participated in a situation that has had a negative impact on human rights, the Company shall undertake all necessary external and internal procedures and implement relief measures.
      Furthermore, the Company shall create and maintain necessary mechanisms to handle grievances and evaluate the effectiveness of corrective and relief measures in an ongoing manner.
    • Education
      The Sumitomo Forestry Group shall conduct periodic and appropriate training for directors, employees and other parties to ensure that this Policy is integrated into the business activities of Sumitomo Forestry Co., Ltd., and all consolidated subsidiaries.
    • Communication with stakeholders
      Sumitomo Forestry Group shall communicate and discuss potential human rights risks, measures to counter actual influences and other related issues with relevant stakeholders.
    • Information disclosure
      To fulfill our reporting responsibilities, we shall disclose information and provide reports in a timely manner regarding initiatives based on this Policy and our response to potential or actual human rights issues.

President and Representative Director Toshiro Mitsuyoshi


Sumitomo Forestry Group Human Rights Material Issues

The following are the Group’s material issues in relation to human rights as defined by international norms. These high priority issues may be reevaluated as appropriate according to changes in the Group’s operations and state of society.

<Prohibition of discrimination>

  • Prohibition of discrimination on the basis of gender, age, nationality, ethnicity, race, birthplace, religion, belief, disability, sexual orientation, gender identity or other

<Workers' rights>

  • Prohibition of child labor and forced labor (including foreign and immigrant workers)
  • Respect for the freedom of association and collective bargaining
  • Prevention of low wage labor (labor below minimum or living wages)
  • Prevention of long work hours
  • Prohibition of power harassment and sexual harassment
  • Maintenance of labor safety
  • Maintenance of worker health (including mental health)

<Respect for the rights of vulnerable people related to our operations>

  • Respect for the rights of local residents and indigenous people of the regions where we operate
  • Respect for the rights of women, children, minorities, the elderly and others
  • Consideration of the environmental rights of future generations (sustainable forest management and other initiatives)


  • Respect for the privacy and protection of personal information, including that of our customers and employees

Sumitomo Forestry Group Declaration on Empowering Women

Sumitomo Forestry Group is committed to creating “an open and inclusive corporate culture that values diversity,” as set out in its Action Guidelines. We believe a diverse workforce and a business strategy developed from a wide range of ideas is important for the Company. As part of this effort, we are striving to promote the participation of women in the belief that this will meet the social needs and significantly contribute to increased corporate value.
By expanding opportunities for women and by leveraging the creative power of women, we will integrate a diverse range of values that will spur innovation and enhance corporate value.

  1. We will create a positive work environment for women
    In Japan, with a falling birthrate and aging population, worker population is projected to decline. By utilizing a workforce made up of individuals without regard to values, age, gender, nationality or disability, and by respecting the individual lifestyles of each and every female employee, we are working to create an open corporate culture and positive working environment where everyone can gain a sense of fulfillment in their work.
  2. We will leverage women's unique creative powers
    Women's success in business is gaining prominence, such as with companies that utilize the perspective and creative powers of women to develop new products and services. In all business sectors, Sumitomo Forestry is striving to nurture the culture and processes that will harness women's unique creative powers and create new value.
  3. We will spur innovation through the participation of women
    Lively interaction among employees of different values, ages, gender, nationalities and other qualities leads to new ideas. Expanding work opportunities for women employees, in particular, spurs innovation in all areas, from sales and marketing to product development, business strategy and operational efficiencies.

President and Representative Director Toshiro Mitsuyoshi

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Sustainability Report