Contributions to the SDGs and Material Issues

• Basic Policy
• Material Issues and SDGs
• Dissemination of SDGs

Basic Policy

The Sustainable Development Goals (SDGs) adopted by the United Nations General Assembly in 2015 set 17 goals on subjects such as poverty, equality, education, and the environment for all nations and regions to achieve by 2030. The SDGs work to solve various global issues raised as principles toward building a better international society that leaves no one behind.

The Sumitomo Forestry Group will promote further business operations and ESG initiatives as one basic policy in the 2021 Mid-Term Management Plan announced in May 2019. The creation of new business opportunities and business growth as well as initiatives that work to solve social issues defined in the SDGs contributes to the realization of a sustainable and prosperous society. We do recognize the risks of not fully executing these initiatives as well, such as delays in compliance to laws and regulations and a harmed reputation.

With this awareness, our Mid-Term Sustainability Targets define 15 qualitative targets associated with five material issues according to relevance with the SDGs and clarify what can be done now by our Group to achieve the SDGs that outline an ideal form for 2030. We will aim to contribute to the SDGs by reaching the 15 qualitative targets of our material issues.

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Material Issues and SDGs

To integrate the material issues that we have identified and SDG initiatives, the Sumitomo Forestry Group has associated SDGs (goals and targets) with the 15 qualitative targets of material issues as shown below. In these activities, each division always promotes use of the PDCA cycle to establish a system for achieving the SDGs by first using indicators for evaluation (numerical targets) with fiscal 2021 set as target based on the Mid-Term Sustainability Targets.

Material Issues and SDGs (Goals and Targets)

Five Material Issues	15 Qualitative Targets	Relevant SDGs (Goals and Targets)
Ongoing Timber and Materials Procurement that Considers Sustainability and Biodiversity	❶　Management forests while mitigating climate change and protecting biodiversity	13.1	15.1 15.2	17.17
	❷　Expanding the utilization of sustainable forest resources	12.2 12.8	13.2	15.2 15.3
	❸　Building sustainable supply chains	10.2	12.2	13.2
			15.1	17.17
The Development and Sale of Reliable and Safe Products and Services that Consider the Environment and Society	❹　Increasing environmentally conscious products and services * including reducing greenhouse gas emissions towards creating a decarbonized society (SBT: Scope 3)	7.2	9.4	11.b
			12.8	13.2
	❺　Creating an environment that considers biodiversity		12.a	15.4
	❻　Expanding businesses that contribute to resolving social issues		7.2	11.3
			12.8	13.1
	❼　Promoting sustainable and innovative technological development	9.4	11.7	12.8
			13.1 13.2	15.1
The Reduction of the Environmental Impact of Our Business Activities	❽　Reducing greenhouse gas emissions toward creating a decarbonized society (SBT: Scope 1 & 2)			13.1
	❾　Protecting resources, reducing the generation of waste and achieving zero emissions		11.6	12.5
	❿　Conserving and effectively utilizing water resources	6.4	11.7	12.8
A Vibrant Work Environment Where a Diverse Workforce can Unharness their Skills and Individuality	⓫　Creating a work environment that generates diverse ideas, job satisfaction and vibrancy		5.5	8.5
	⓬　Securing human resources by training younger workers and utilizing older ones			8.5
	⓭　Reducing long work hours through work style reforms		3.9	8.5
	⓮　Eliminating occupational injuries		3.9	8.8
Corporate Ethics and Governance Structures	⓯　Reinforcing risk crisis and compliance structures			16.5 16.7

Highlighted SDGs (Goals and Targets), 15 Qualitative Targets and Main Initiatives

SDGs (Goals and Targets)		Relevant 15 Qualitative Targets	Main Initiatives
	3.9 By 2030, substantially reduce the number of deaths and illnesses from hazardous chemicals and air, water and soil pollution and contamination.	❾　Protecting resources, reducing the generation of waste and achieving zero emissions	Pollution Prevention
	5.5 Ensure women’s full and effective participation and equal opportunities for leadership at all levels of decision-making in political, economic and public life.	⓫　Creating a work environment that generates diverse ideas, job satisfaction and vibrancy	Promoting the Active Involvement of Female Employees
	6.4 By 2030, substantially increase water-use efficiency across all sectors and ensure sustainable withdrawals and supply of freshwater to address water scarcity and substantially reduce the number of people suffering from water scarcity.	❿　Conserving and effectively utilizing water resources	Efficient Use of Water Resources
	7.2 By 2030, increase substantially the share of renewable energy in the global energy mix.	❻　Expanding businesses that contribute to resolving social issues	Aiming for 100% Renewable Energy and Joining the RE100
	8.5 By 2030, achieve full and productive employment and decent work for all women and men, including for young people and persons with disabilities, and equal pay for work of equal value.	⓬　Securing human resources by training younger workers and utilizing older ones	Diversity and Inclusion
	9.4 By 2030, upgrade infrastructure and retrofit industries to make them sustainable, with increased resource-use efficiency and greater adoption of clean and environmentally sound technologies and industrial processes, with all countries taking action in accordance with their respective capabilities.	❹　Increasing environmentally conscious products and services * including reducing greenhouse gas emissions towards creating a decarbonized society (SBT: Scope 3)	Promotion of Net Zero Energy House (ZEH) Specifications
		❼　Promoting sustainable and innovative technological development	Toward the Future -Aiming for the Timberized Eco Cities with W350 Plan-
	10.2 By 2030, empower and promote the social, economic and political inclusion of all, irrespective of age, sex, disability, race, ethnicity, origin, religion or economic or other status.	❸　Building sustainable supply chains	Human Rights Initiatives
	11.3 By 2030, enhance inclusive and sustainable urbanization and capacity for participatory, integrated and sustainable human settlement planning and management in all countries.	❻　Expanding businesses that contribute to resolving social issues	Lifestyle Services Business Initiatives
	11.6 By 2030, reduce the adverse per capita environmental impact of cities, including by paying special attention to air quality and municipal and other waste management	❾　Protecting resources, reducing the generation of waste and achieving zero emissions	Waste Reduction and Recycling Management Initiatives to Achieve Zero Emissions Pollution Prevention
	11.b By 2020, substantially increase the number of cities and human settlements adopting and implementing integrated policies and plans towards inclusion, resource efficiency, mitigation and adaptation to climate change, resilience to disasters, and develop and implement, in line with the Sendai Framework for Disaster Risk Reduction 2015-2030, holistic disaster risk management at all levels.	❹　Increasing environmentally conscious products and services * including reducing greenhouse gas emissions towards creating a decarbonized society (SBT: Scope 3)	Adaption to Climate Change
	12.2　By 2030 achieve sustainable management and efficient use of natural resources	❸　Building sustainable supply chains	Supply Chain Management
	12.5 By 2030, substantially reduce waste generation through prevention, reduction, recycling and reuse.	❾　Protecting resources, reducing the generation of waste and achieving zero emissions	Waste Reduction and Recycling Management Initiatives to Achieve Zero Emissions
	13.1　Strengthen resilience and adaptive capacity to climate related hazards and natural disasters in all countries	❶　Management forests while mitigating climate change and protecting biodiversity	Sustainable Forest Management
		❻　Expanding businesses that contribute to resolving social issues	Aiming for 100% Renewable Energy and Joining the RE100
		❽　Reducing greenhouse gas emissions toward creating a decarbonized society (SBT: Scope 1 & 2)	Greenhouse Gas Emissions from Business Activities
	13.2 Integrate climate change measures into national policies, strategies and planning.	❹　Increasing environmentally conscious products and services * including reducing greenhouse gas emissions towards creating a decarbonized society (SBT: Scope 3)	Mitigation of Climate Change
	15.1　By 2020, ensure the conservation, restoration and sustainable use of terrestrial and inland freshwater ecosystems and their services, in particular forests, wetlands, mountains and drylands, in line with obligations under international agreements	❶　Management forests while mitigating climate change and protecting biodiversity	Sustainable Forest Management
	15.2 By 2020, promote the implementation of sustainable management of all types of forests, halt deforestation, restore degraded forests and substantially increase afforestation and reforestation globally.	❶　Management forests while mitigating climate change and protecting biodiversity	Protecting Domestic Forest Resources
		❷　Expanding the utilization of sustainable forest resources	Forest Revitalization Initiatives
	15.3 By 2030, combat desertification, restore degraded land and soil, including land affected by desertification, drought and floods, and strive to achieve a land degradation-neutral world.	❷　Expanding the utilization of sustainable forest resources	Reforestation Activities Contributing to the Society Consulting Business Forest Management Overseas
	15.8 By 2020, introduce measures to prevent the introduction and significantly reduce the impact of invasive alien species on land and water ecosystems and control or eradicate the priority species.	❹　Increasing environmentally conscious products and services * including reducing greenhouse gas emissions towards creating a decarbonized society (SBT: Scope 3)	Contributions to Eco Cities Through Greening
		❺　Creating an environment that considers biodiversity	Contributions to Eco Cities Through Greening
	16.5 Substantially reduce corruption and bribery in all their forms.	⓯　Reinforcing risk crisis and compliance structures	Compliance
	17.16 Enhance the global partnership for sustainable development, complemented by multi-stakeholder partnerships that mobilize and share knowledge, expertise, technology and financial resources, to support the achievement of the sustainable development goals in all countries, in particular developing countries.	❸　Building sustainable supply chains	Supply Chain Management

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Dissemination of SDGs

Sumitomo Forestry Group believes that it is crucial to disseminate and foster an understanding of SDGs to contribute to the SDGs through business. We conduct various initiatives to raise awareness in not only our employees but all of our stakeholders (examples below).

Implementation of SDGs Dissemination Workshops, Training and Recognition Surveys

Cosponsoring the Nikkei SDGs Forum

Sumitomo Forestry Group is cosponsoring the Nikkei SDGs Forum, a project run by the Nikkei Group to support companies in their efforts to achieve the Sustainable Development Goals (SDGs) set by the United Nations, from fiscal 2018.

Committing to the Shizuoka City SDGs Declaration

The Shizuoka Branch of the Housing and Construction Division at Sumitomo Forestry is committed to the Shizuoka City SDGs Declaration which has been encouraging SDG activities through offices and associations in Shizuoka City in addition to develop and broadly share excellent case studies since November 2019. As a target of initiatives in fiscal 2020, we have set an 80% standardization rate for Net Zero Energy Houses (ZEH).

In January 2019, the Shizuoka Branch participated in the symposium “Local Communities and SDGs: Furthering SDGs Together” held by Shizuoka City. They exhibited a booth that provided information on broad topics from installing solar panels and strengthening tree-planting proposals to providing environmentally-friendly housing.

Registration as a Kanagawa SDGs Partner

Registration as a Company Promoting SDGs in Niihama City

The Niihama City SDGs Promotion Company Registration System that supports companies actively working to achieve the SDGs welcomed the Sumitomo Forestry Niihama General Administration Office as a member in February 2021.

In Niihama where the Sumitomo Forestry Group was founded, we will continue to advance activities to achieve the SDGs from encouraging the employment of people with disabilities and procuring plantation timber and certified timber which considers sustainability and biodiversity to creating public forest benefits through the management of company owned forests.

Publication of Examples to the Educational “EduTown SDGs” Website for Elementary and Junior High School Students

Tokyo Shoseki provides educational materials on the educational EduTown: Let’s Build Our Future website for the SDGs to inspire elementary and junior high school students to think about the future of our planet from a global perspective through each sustainable development goal and learn what they can do. This website also includes our activities since fiscal 2020 to foster circular forest resources by planting and using trees as an example for Goal 15 of the SDGs.

• EduTown: Let’s Build Our Future (in Japanese)
• Example of Our Initiative for Goal 15 (in Japanese)

Holding a Greenery and SDGs Seminar Jointly with Kumagai Gumi

In July 2019, we jointly organized the Sumitomo Forestry and Kumagai Gumi Greenery and SDGs Seminar at the head office of Kumagai Gumi, which has a business and capital alliance with Sumitomo Forestry. Roughly 250 people from both companies participated in the seminar that introduced environmental real Estate business examples that aim to integrate construction and greening technologies with expertise possessed by both Sumitomo Forestry and Kumagai Gumi. Environmental experts also provided keynote speeches on the perspectives of SDGs.

By taking advantage of the strengths of both companies, we will propose sustainable construction and spaces that leverage the power of greenery.

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