Biodiversity Conservation in the Forests Owned by Sumitomo Forestry in Japan

We have formulated the policy on biodiversity conservation for the forests owned by Sumitomo Forestry in Japan. According to the policy, we protect "diversity of ecosystems" through the proper management of conservation areas and in consideration of forest continuity, "diversity of species" through the protection of rare plants and animals, and "genetic diversity" through the maintenance of wildlife populations. Based on this policy, we are appropriately zoning and managing our forests based on the criteria, such as the increment of trees. We are also engaging in the preparation of an endangered species list and a waterside forest management manual, and check for rare species before clearcutting and the opening of a work road.

Creation of the Sumitomo Forestry Red Data Book

Sumitomo Forestry creates the Sumitomo Forestry Red Data Book listing flora and fauna at the threat of extinction, which may exist in the forests owned by the company, and distributes the copies to employees and contractors involved in forest management. By carrying the book with them during operations, the personnel can refer to the opinions of specialists when they come across flora and fauna included in the book and manage them appropriately. While using the latest version of this book, we will continually advance our measures for biodiversity and update the content of the text as necessary.

Creation of the Riparian Forest Management Manual

With the aim of protecting waterside areas that are home to diverse species, we are also using the Riparian Forest Management Manual to ensure the appropriate management and preservation of areas around bodies of water. Areas designated for protection under the Riparian Forest Management Manual are referred to as riparian forest management zones, where restrictions are placed on activities such as logging and the construction of forest roads and work paths. Riparian forest management zones are registered in a database, and we ensure water-conscious operations by checking these zones and assessing the feasibility of planned activities before implementation.

Wildlife Monitoring Surveys

Sumitomo Forestry conducted monitoring surveys nine times on the status of the local wildlife habitat in the following four areas during the period from 2008 to 2016: Mombetsu (Hokkaido), Niihama (Shikoku), Hyuga (Kyushu) and Kinki region (Honshu). The results of the surveys indicate that the size of the population and the species of mammals and birds change following the gradual transition from small clear-cut areas to forests, which implies that forestry contributes to the conservation of biodiversity.

In 2025, we conducted a monitoring survey targeting the same location and using the same monitoring method in our forest in Hyuga. Our aim was to understand the long-term changes caused to the wildlife habitat by our operations in the forest and leverage those findings to promote our nature positive related initiatives. Back in 2009, we clear-cut a small area in the forest, and in the 2025 monitoring survey, we confirmed that the trees later planted in the area had been growing favorably. In addition, we observed the replacement of grassland birds with forest birds in the area. We will conduct similar monitoring surveys also in other forests owned by Sumitomo Forestry in Japan.

Appropriate Control of the Deer Population

Due to a recent increase in the number of wild deer throughout Japan, there are concerns about increased damage to forestry, such as damage to young leaves and bark, and loss of biodiversity and soil runoff due to the loss of vegetation caused by damage to herbaceous plants on the forest floor. By capturing and culling deer and installing tree shelters and protective nets to protect planted trees, the Sumitomo Forestry Group is contributing to the prevention of feeding damage caused by deer, the growth of healthy forests, the conservation of biodiversity through the protection of a variety of forest floor vegetation, and to the control of local disasters by preventing soil runoff.

Tree shelters are effective against wildlife damage including damage by deer, and also contribute to the growth of trees by protecting each of them from the stress caused by weather conditions, underbrush and other factors. In fiscal 2025, we sold and installed approximately 58,000 tree shelters inside and outside the company, which are used in forests throughout Japan.

Nationally Certified Sustainably Managed Natural Sites

In fiscal 2023, the Ministry of the Environment launched a national certification system for sustainably managed natural sites. Sumitomo Forestry received certification under the system for a part of its forest located in Niihama City, Ehime Prefecture in 2023, and for Mt. Fuji Manabi no Mori in 2024, which is a part of a national forest leased by the government and managed by the company.

The Ministry of the Environment has been implementing this certification system to achieve the 30by30 target for nature positive. Local community forests, forests managed by companies in the private sector, and other areas where biodiversity is conserved are nationally certified as sustainably managed natural sites.

Forest Owned by Sumitomo Forestry in Niihama City, Ehime Prefecture

There is a community of rare alpine plants "Tsugazakura (Phyllodoce nipponica)” in the certified area of the forest. It is considered to be a species started in the ice age, and the community is highly valuable in terms of plant geography, ecology, and genetics as it is at the southern limit for the natural distribution of the species. In 2019, the "Tsugazakura (Phyllodoce nipponica) of Mt. Douzan" was designated as a natural monument.
In 1996, Sumitomo Forestry formed the Tsugazakura (Phyllodoce nipponica) Nature Conservation Council with Niihama City and other local entities, and has since been engaged in nature conservation activities with local mountaineering organizations. In addition, the Mt. Douzan Tsugazakura (Phyllodoce nipponica) Preservation and Utilization Plan Committee, which includes experts, formulated a 10-year conservation plan starting in fiscal 2024. We will continue to engage in nature conservation activities involving local related parties.

Mt. Fuji Manabi no Mori

The "Manabi no Mori" at Mt. Fuji is located in the national forest at the foot of Mt. Fuji, which suffered significant damage from Typhoon No. 17 in 1996. In order to restore the original richness of the forest, the company named a portion of the national forest "Manabi no Mori." Under a long-term plan with a 100-year perspective, we have been implementing a natural forest restoration project since 1998. In the certification review, high praise was given for the forest’s ongoing regeneration, its role as a habitat for rare flora and fauna, and its provision of diverse activity spaces for people. The involvement of experts in creating activity plans and the establishment of a monitoring system were also highly valued.

Biodiversity Conservation in Planted Forests Overseas

Initiatives in Indonesia

More than half of living species throughout the world live in rainforests, which are said to be the treasure troves of life. However, rainforests are slowly disappearing today due to a variety of issues from disordered development and illegal logging to forest fires. The Sumitomo Forestry Group subsidiary companies PT. Wana Subur Lestari (WSL), PT. Mayangkara Tanaman Industri (MTI) and Kubu Mulia Forestry (KMF) conduct operations, balancing working forests and environmental conservation in the West Kalimantan province of Indonesia.

Before starting a working forest project, we conduct precise measurements and surveys to determine conservation areas, buffer zones and forestation areas. We also conduct regular animal and plant surveys in the conservation areas. For orangutans and proboscis monkeys, which are rare animals, we also conduct surveys on fruit-bearing trees, which are their source of food, as well as conducting population monitoring surveys.

Observations in the dark for numerous animals active in the early morning or late at night require proficient skills. Sumitomo Forestry is attempting to directly observe proboscis monkeys and orangutans in the early morning and at night through automatic photography using camera traps or drones equipped with heat sensors.
By using camera traps installed in the conservation areas, WSL and MTI captured the images of 21 species and 321 individuals and 16 species and 120 individuals, respectively, in 2025.

We photographed an adult orangutan with its child for the first time in fiscal 2019 and confirmed a greater population than in surrounding areas in fiscal 2020. These results are proof of the growing orangutan population.

Peatlands store a tremendous amount of water. Sumitomo Forestry surveys not only ecosystems on land but also in aquatic habitats due to concerns about the impact of our operations on rivers. In the lower basin of an area managed by WSL, we have discovered a habitat of Irrawaddy dolphins, which are designated as an endangered species. Examples of monitoring surveys of aquatic creatures in rainforest peatlands are few and far between. These Sumitomo Forestry surveys are globally pioneering.

Additionally, at Bina Ovivi Pari Semesta (BIOS), which is engaged in mangrove forest conservation in West Kalimantan, 15 endangered species—five mammals, six birds, and four reptiles—among the diverse animal species inhabiting the area have been designated as priority conservation targets. Through daily patrols, monitoring, and vegetation restoration activities, we are working to conserve and create habitats for these rare species.

Initiatives in Papua New Guinea

Open Bay Timber (OBT) is working proactively to manage forests and conserve biodiversity based on the high conservation value (HCV) concept. In 2021, an HCV evaluation was carried out by a third-party organization. It confirmed the existence of floras with high conservation value, including Pterocarpus indicus (a rare, precious tree) and Terminalia archipelagi (a tree indigenous to the Bismarck Archipelago). These trees are classified as an endangered species and a vulnerable species, respectively, in the red list of the International Union for Conservation of Nature and Natural Resources. Also, the evaluation confirmed the existence of Blyth’s Hornbill (a bird living only on islands located around New Guinea) and other faunas.

Based on the evaluation results, OBT is continuing to set conservation areas, conduct awareness-raising activities for local communities, and engage in the annual monitoring of rare and endangered species. In 2025, OBT proactively invited external HCV experts to the company to incorporate their expertise into its biodiversity maintenance and improvement activities, and thereby enhance them.