Business Overview

The Timber and Building Materials Business engages in a wide range of operations from the manufacturing of timber and building materials to their distribution, as the leading timber and building materials trading company in Japan in terms of transaction amount.

Based on a global network built up over years of involvement in developing operations worldwide, the Distribution Business sources stable supplies of high-quality timber from properly managed forests. In Japan, we purchase and sell a wide range of products related to timber and building materials. In recent years, we also handle domestic timber that has reached the harvest stage and wood chips used to fuel biomass power generation expected to see larger demand in the future.

In the Manufacturing Business, we manufacture doors and windows, wooden interior fittings, stair case materials, and others in Japan. The Manufacturing Business in Japan produces construction articles such as doors and windows, interior wood materials, and staircase materials. Overseas, we produce wooden board products such as plywood, medium-density fireboard (MDF) and particle board and various building materials such as flooring, furniture and kitchen cabinets at each location in South East Asia, Oceania, and North America. We supply them all over the world including Japan.

Value Chain of Distribution Business

Verification of Legal Compliance and Sustainability

The Sumitomo Forestry Group engages in due diligence on its procurement suppliers and wood procurement according to the Sumitomo Forestry Group Procurement Policy. We not only ensure legal compliance but also verify considerations toward human rights, labor, biodiversity conservation and the local community while practicing sustainable procurement.

Procurement

The Sumitomo Forestry Group strives to conduct procurement activities while making considerations about human rights and labor in all timber and wood products verified to be sustainably and legally compliant as well as conserve biodiversity and contribute to the local community. The progress of these initiatives is reported to the Wood Procurement Committee made up of managers from each section procuring timber to encourage continued improvements in the supply chain.

In addition, given that it is characterized as being a regional industry, the Sumitomo Forestry Group maintains close communication with the suppliers and purchasers of wood and building materials in each region.

Commercialization and Delivery

The Sumitomo Forestry Group commercializes and ships the wood that is procured not only as log but also plywood, timber, building materials and other products.

Shipping and Sales

The Sumitomo Forestry Group fulfills accountability by encouraging sales of certified timber as well as labeling with considerations to traceability.

Value Chain of Manufacturing Business

Product Development/Raw Material Procurement

We work to meet customer’s needs not just through design in slab and board operations and building material and timber product operations, but also by moving forward with product development that optimizes the characteristics of raw materials and procurement that takes into account the sustainability of raw materials.

Manufacturing

By operating according to the ISO9001 International quality management system and through management that meets or exceeds JIS/JAS product quality requirements, we manufacture high-quality products and strive to build products with even greater safety. We are also focusing on greater energy and resource savings and recycling in manufacturing processes.

Sumitomo Forestry Group also regards the establishment of a safe, healthy work environment for all employees working in each manufacturing plant as our responsibility, and we therefore continually pursue a goal of zero occupational injuries.

Shipping

We ship and sell processed and manufactured products not only in Japan, but in countries around the world.

We have been moving forward with continual improvements such as redesigning packaging to cut waste, revising delivery methods to provide customers with greater ease of access, and reductions in greenhouse gas emissions.

Integrated Approach to ESG Initiatives in the Timber and Building Materials Business

The Timber and Building Materials Business develops a broad range of businesses centered upon wood, which encounter various social issues in each process from procurement through manufacturing and distribution. Additionally, we are moving ahead with initiatives to establish a cyclical resource supply system with the timber industrial complex as a pillar and standardizing carbon neutral design through the expanded adoption of One Click LCA.

The Sumitomo Forestry Group recognizes a broad range of important social issues regarding timber and wood products handled in its distribution businesses from compliance with laws, regulations and social norms to the respect of human rights, securing of occupational health and safety, biodiversity conservation and the consideration of local community. We promote the integration of business with ESG by setting targets related to the percentage of sustainable timber and wood products handled and incorporating confirming the sustainability initiatives of suppliers in the business flow.

We recognize that establishing safe, stable working environments and reducing the environmental impact in manufacturing business is a material issue. Therefore, we are working to enhance safety measures, improve working environments, and reduce greenhouse gas emissions while increasing recycling rates.

ESG Initiatives in the Timber and Building Material Business