Sumitomo Forestry Group Corporate Philosophy and Sustainability Management

The Sumitomo Forestry Group has been operating and engaging in sustainable management based on its Corporate Philosophy of “The Sumitomo Forestry Group utilizes wood as a healthy and environmentally friendly natural resource to provide a diverse range of lifestyle-related services that contribute to the realization of a sustainable and prosperous society. All our efforts are based on Sumitomo Spirit, which places prime importance on fairness and integrity for the good of society”. We have been operating based on this philosophy and engaging in sustainable management. We redefined the Sumitomo Forestry Group Code of Conduct in July 2017 so that it conforms to the requirements of society, such as recent international standards and initiatives. We formulate various policies and guidelines according to these principles, such as our environmental, procurement and human rights policies. In addition, to ensure Group-wide adoption of the Sumitomo Forestry Group Code of Conduct, we explain it by distributing a Sumitomo Forestry Group Code of Conduct Handbook to each and every employee of Group companies and by carrying out e-Learning. This information is translated into English and other languages to implement the Code of Conduct along with Corporate Philosophy and Our Values among affiliated companies outside of Japan.

This information has also been disclosed on our website to our business partners and other stakeholders.

At the Sustainability Committee convened four times a year, we monitor the practice and effectiveness of these principles from our Corporate Philosophy to Our Values and Code of Conduct.

Moreover, based on the ISO26000, the International standard requiring organizations to practice social responsibility, the Sumitomo Forestry Group actively communicates with all stakeholders.

Incorporating the Sumitomo Group's shared values into its brand message “Happiness Grows from Trees,” we will further promote sustainable management, thereby contributing to a sustainable society.

 

Corporate Philosophy

The Sumitomo Forestry Group utilizes wood as a healthy and environmentally friendly natural resource to provide a diverse range of lifestyle-related services that contribute to the realization of a sustainable and prosperous society. All our efforts are based on Sumitomo’s Business Spirit, which places prime importance on fairness and integrity for the good of society.

Our Value

  • We provide high-quality products and services that bring joy to our customers.
  • We create new businesses that lead to happiness for generations to come with a fresh perspective.
  • We promote a free and open-minded corporate culture that respects diversity.
  • We set and strive to achieve ambitious goals through ongoing effort.
  • We do work that wins us the trust of society with fair and honest conduct.

Sumitomo Forestry Group Code of Conduct

Purpose and scope of application
Based on its corporate philosophy and Our Value, the Sumitomo Forestry Group shall manage its operations, including the supply chain, in accordance with this Code of Conduct.

Fair and transparent corporate activities

  1. Strict adherence to laws and regulations
    We shall adhere to all domestic and overseas laws and company regulations and respect international norms of behavior.
  2. Prevention of corruption
    We shall have absolutely no involvement in corrupt practices, including bribery, embezzlement and money laundering.
  3. Fair business transactions
    We shall pursue fair business transactions and refrain from any involvement in cartels, bid rigging or other such activities.
  4. Fair accounting procedures
    We shall conduct fair accounting and tax practices based on accurate records.
  5. Communication with stakeholders
    In consideration of the interests of our shareholders and other stakeholders, we shall disclose necessary information in a timely and fair manner and promote dialogue.
  6. Maintaining confidentiality
    We shall ensure the protection of confidential information, both our own and that of third parties.
  7. Information Security
    We shall install appropriate information security measures to prevent information leaks and other breaches.
  8. Relationships with companies we do business with
    We shall build and maintain constructive relationships with the parties we do business with and refrain from inappropriate behaviors, such as the abuse of power.
  9. Protection of intellectual property rights
    In addition to protecting our own Company's intellectual property rights, we shall not infringe on the intellectual property rights of others.
  10. Protection of personal information
    We shall appropriately manage personal information, use it only for authorized purposes and prevent leaks.
  11. Responsible advertising/promotional efforts
    We shall engage in accurate and appropriate advertising and promotional efforts that do not cause misunderstanding or offense.
  12. Healthy relationship with the government
    We shall maintain a healthy and transparent relationship with the government that is in conformance with all laws.
  13. Stance on organized crime
    We shall have absolutely no involvement in organized crime.
  14. Establishment of a whistleblowing mechanism
    We shall establish a mechanism for people to report any suspicions of breaches to any laws or this Code of Conduct. By allowing reports to be made anonymously and strictly prohibiting retaliation against informants and other measures, we will actively promote its use.

Ethical conduct

  1. Avoidance of a conflict of interest
    We shall make a clear distinction between professional and personal matters and refrain from activities that may constitute a conflict of interest with the company.
  2. Prohibition of misappropriation of company assets
    We shall not use company funds or assets for personal purposes.
  3. Prohibition of insider trading
    We shall take no part in insider trading, including being complicit with others.
  4. Appropriate gift giving and entertainment
    We shall neither accept nor offer gifts or entertainment that would be considered inappropriate according to socially accepted norms.
  5. Prohibition of political or religious activities
    During work hours, we shall not recruit or otherwise promote political, religious or other activities based on personal ideology.

A respectful, healthy workplace

  1. Respect for human rights
    According to internationally accepted human rights norms, we shall respect the human rights of all individuals, including women, children, indigenous people, minorities and vulnerable people.
  2. Prohibition of discrimination and the promotion of diversity
    We shall not discriminate on the basis of race, ethnicity, nationality, gender, religion, ideology, disability, sexual orientation, gender identity or other. In addition, we shall work to secure and promote diversity.
  3. Prohibition of forced labor and child labor
    We shall not tolerate forced labor or child labor in any form.
  4. Freedom of association and collective bargaining rights
    In accordance with laws, we shall secure workers' rights for freedom of association and collective bargaining.
  5. Appropriate working hours and wages
    In accordance with laws, we shall ensure that working hours and wages are appropriate.
  6. Work/life balance
    We shall secure the appropriate balance between work and individual commitments, such as caring for children and the elderly.
  7. Occupational health and safety
    We shall strive to maintain a safe and healthy work environment. In addition, we shall implement regular educational and training programs to prepare for disasters, accidents and other.
  8. Human resources development
    We shall strive to nurture human resources by providing skill enhancement opportunities, such as training seminars.
  9. Prohibition of harassment
    We shall not commit or tolerate acts of sexual harassment, power harassment, inhumane punishment or other.
  10. Protection of privacy
    We shall respect and protect the individual’s right to privacy.

Business activities that respect society and the environment

  1. Customer satisfaction and safety
    We shall secure the safety and security of our customers and at the same time, sincerely engage with them and work to improve quality and customer satisfaction.
  2. Coexistence with the environment
    We shall strive to reduce the environmental impact of our products and services throughout their entire lifecycle, prevent global warming, recycle resources, prevent pollution and maintain biodiversity.
  3. Contribution to the local community
    We shall respect the local region’s culture and customs and through dialogue, shall seek to contribute to their sustainable development.

Established July 1, 2017

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Participation and Sponsorship of Initiatives

United Nations Global Compact

In December 2008, Sumitomo Forestry formally signed the United Nations (UN) Global Compact to declare our support for its principles. The ten principles of the UN Global Compact are based on globally established agreements, including the Universal Declaration of Human Rights, and the International Labour Organization’s (ILO) Declaration on Fundamental Principles and Rights at Work. They incorporate support of and respect for the protection of human rights and the eradication of forced and child labor.

The Ten Principles of the UN Global Compact

  • Human Rights
  • Principle 1: Businesses should support and respect the protection of internationally proclaimed human rights; and
  • Principle 2: make sure that they are not complicit in human rights abuses.
  • Labor
  • Principle 3: Businesses should uphold the freedom of association and the effective recognition of the right to collective bargaining;
  • Principle 4: the elimination of all forms of forced and compulsory labour;
  • Principle 5: the effective abolition of child labor; and
  • Principle 6: the elimination of discrimination in respect of employment and occupation.
  • Environment
  • Principle 7: Businesses should support a precautionary approach to environmental challenges;
  • Principle 8: undertake initiatives to promote greater environmental responsibility; and
  • Principle 9: encourage the development and diffusion of environmentally friendly technologies.
  • Anti-Corruption
  • Principle 10: Businesses should work against corruption in all its forms, including extortion and bribery.

United Nations Global Compact

World Business Council for Sustainable Development (WBCSD)

Sumitomo Forestry has been a member of the WBCSD* since January 2020.

We advance efforts to resolve social issues through business to contribute to the SDGs and build a sustainable society.

* World Business Council for Sustainable Development is a CEO-led organization of over 200 leading businesses working together to accelerate the transition to a sustainable world.

WBCSD

Task Force on Climate-related Financial Disclosures (TCFD)

Sumitomo Forestry Group recognizes the risks associated with climate change as serious risks, and announced its support to the TCFD* in July 2018. Based on the TCFD recommendations scenario analysis was begun the same year.

* Task Force on Climate-related Financial Disclosures was established by the direction of the Financial Stability Board (FSB) in April 2015 as a framework for voluntary informational disclosure by companies on risks and opportunities related to climate change.

TCFD

Science Based Targets (SBT)

The Sumitomo Forestry Group has announced the formulation of SBTi*1 and set new greenhouse gases reduction target for the entire Group in June 2017 and was certified as SBT in July 2018.

  • 1. Scope 1&2*2: 21% reduction of greenhouse gas emissions compared to 2017 (base year) by 2030.

  • 2. Scope 3*2: 16% reduction of total greenhouse gas emissions from Category 1 and Category 11*3 compared to 2017 (base year) by 2030.

*1 The SBTi was established in 2015 as a collaboration of four organizations - CDP (formerly the Carbon Disclosure Project), the UN Global Compact, the World Resources Institute (WRI) and the World Wide Fund for Nature (WWF). The SBTi defines and promotes best practice in science-based target setting, to help companies determine a pathway for reducing their emissions in line with what is required to keep global temperature increase below 2 degrees Celsius compared to pre-industrial temperatures. In Japan, the Ministry of the Environment has translated this in Japanese as “Corporate 2°C Target” and is supporting company efforts.

*2 Scope 1: Direct GHG emissions of a company, including emissions from fuel consumption. E.g. CO2 emissions from the use of gasoline for company vehicles.
Scope 2: Indirect GHG emissions including CH4 and N2O from the generation of purchased electricity and heating. E.g. CO2 emissions from the use of electricity by offices.
Scope 3: GHG emissions occurring in the supply chain. E.g. CO2 emissions generated during the use of products sold.

*3 Category 1: Greenhouse gas emissions during collection, manufacture, and transport of purchased or acquired goods and services included in Scope 3.
Category 11: Greenhouse gas emissions during use of sold products and services included in Scope 3.

SBT

RE100

Sumitomo Forestry joined the international RE100* initiative in March 2020 that aims for 100% renewable energy in power used for business. Our goal is to transition fuel to generate power to 100% renewable energy in Sumitomo Forestry Group power and power generation businesses by 2040.

* RE100 is an international initiative run jointly by The Climate Group, a global environmental NGO, and the CDP.

RE100

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Sustainability Report