Responding to Climate Change

Participation and Sponsorship to Climate Change-Related Initiatives

Express Its Support of the TCFD and TNFD

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Establishment and Certification of Science Based Targets (SBT)

As the impact of climate change becomes more urgent globally, companies are being asked to reduce their emissions of greenhouse gases. The Sumitomo Forestry Group has established Group-wide greenhouse gases reduction targets (Scope 1, 2, and 3) for the target year of 2030 and the targets were approved as SBT in July 2018. In order to accelerate our decarbonization efforts, we have raised our greenhouse gases reduction targets (Scope 1 and 2) from 21% to 54.6%, which aligns with the 1.5°C target, with a view to achieving net zero emissions by 2050. The target is set in the medium-term management plan that starts in 2022. In order to ensure the implementation of these efforts, we also formulated a transition plan through 2030 to achieve the 2030 target and realize a carbon-neutral society by 2050.
The Sumitomo Forestry Group is striving to reduce greenhouse gas emissions and taking measures to mitigate climate change for achieving SBT such as thorough energy saving activities and promotion of renewable energy use. In January 2024, in accordance with latest SBT guidance, we re-established our short-term and long-term reduction targets and newly applied for FLAG (Forest, Land and Agriculture) targets. It is expected to be approved by the end of this fiscal year.


Sumitomo Forestry Group's SBT

2°C target (SBT approved)

  • Scope 1&2: 21% reduction of greenhouse gas emissions compared to 2017 (base year) by 2030.
  • Scope 3: 16% reduction of total greenhouse gas emissions from Category 1 and Category 11 compared to 2017 (base year) by 2030.

1.5℃ target (SBT application pending)

  • Scope 1&2: 54.6% reduction of greenhouse gas emissions compared to 2017 (base year) by 2030.
  • Scope 3: 16% reduction of total greenhouse gas emissions from Category 1 and Category 11 compared to 2017 (base year) by 2030.

Achievement of 2030 targets (Scope 1 and 2: down 54.6% by 2030 compared to 2017) and path to carbon neutrality*1 (summary version)

Items Measures (Greenhouse Gases Reduction Items) Greenhouse Gases Emissions Reduction Rate Impact on profit/loss*2
(million yen / year)
Electricity from renewable energy sources (RE100); excluding New Zealand ▲26.9% ▲95 The profit/loss impact is calculated as when everything is procured with renewable energy certificates (price fluctuates depending on the time of year, required quantity, etc.)
Priority 1: Installation of solar power generation equipment Installation at own facility, including PPA model
Priority 2: Purchase of RE100 compliant electricity Procurement through Sumirin Denki in Japan
Priority 3: Purchase of renewable energy certificates
Measures to achieve 54.6% reduction compared to 2017 Reduction of coal co-firing rate for Mombetsu Biomass Electric Power (10% to 0%) ▲10.2% ~▲25.8% +20~ ▲181
Introduction of electric vehicles in company-owned vehicles in Japan (powered by RE100-compatible electricity) ▲2.8% 258 The profit/loss impact is the only difference between increased electricity consumption and reduced gasoline and diesel fuel consumption. Excluding vehicle price increases and the cost of installing recharging facilities.
Introduction of electric vehicles for sales personnel's private cars for sales use (in Japan) (powered by RE100-compatible electricity) ▲0.3% 22 Assuming a 30% adoption rate in 2030 to achieve the Japanese government's goal of 100% electric vehicles in new car sales by 2035.
Subtotal ▲40.0% ~▲55.6% +4~+205 With coal co-firing rate at Mombetsu Biomass Electric Power 10%: down 40.0% (additional 14.6 reduction required); 0%: down 55.6% (target achieved with 1.0 % in excess)
Reduction of coal co-firing rate for Mombetsu Biomass Electric Power (10% to 0%): additional reduction ▲15.6% ~▲0%
Electrification of energy other than electricity (RE100 compatible electricity), etc. ▲9.2%
Manufacturing plants, etc.: equipment, heavy machinery, vesseles, boilers, backup power sources, etc. ▲4.4%
Introduction of electric vehicles for sales personnel's private cars for sales use: 100% ▲1.7%
Additional measures to achieve the 2030 target or to become carbon neutral Heating of offices and exhibition halls, and laboratory experiments, etc. ▲0.9%
Introduction of electric vehicles in company-owned vehicles (overseas) ▲0.8%
Use of natural gas in nursing homes ▲0.7%
Forestry Business: Heavy equipment, motor boats, fuel for power generation, etc. ▲0.5%
Biomass power generation/start at power generation ▲0.2%
Biomass power generation/wood fuel (dinitrogen monoxide, methane) ▲31.6% Consideration of creating new credits using BECCS*3, offsetting by forests, etc.
Manufacturing facilities/biomass boilers, etc. (dinitrogen monoxide, methane) ▲1.2% Same as above
New Zealand (country) electricity RE100 conversion ▲2.4% Target: to be achieved in 2035
Performance and business growth In principle, increase will be absorbed by each division unit, since business conditions nor scale (emission volume) are unknown.
Emission trading Consider trading of emission credits based on achievement of SBT lines at division unit level, if necessary.
Subtotal ▲60.0% ~▲44.4%
Total ▲100%

*1Transition plan formulated by Sumitomo Forestry to achieve the fiscal 2030 target set in the Medium-Term Management Plan.

*2Impact on profit/loss excludes personnel and other indirect expenses.

*3Bioenergy with Carbon Capture and Storage. Technology to capture CO2 emitted during the use of biomass fuels and store it underground.

Progress Towards the SBT

In fiscal 2023, Scope 1 and 2 emissions decreased by 5.7% from fiscal 2022 due to a reduction in coal consumption at the Mombetsu Biomass Electric Power. Scope 3 emissions increased 1.3%from fiscal 2022 due to an increase in the number of units sold and delivered in the construction and real estate business (Australia).

Progress toward our science-based reduction target: Scope 1 and 2*1*2

Progress toward our science-based reduction target: Scope 1 and 2

Progress toward our science-based reduction target: Scope 3 (Category 1 and 11)*1*2

16% reduction of total greenhouse gas emissions from Category 1 and 11 compared to 2017 by 2030

*1The calculation method for Category 1 emissions of Scope 3 was revised to apply Accounting Standards for Revenue Recognition (Corporate Accounting Standard No.29) as of fiscal 2019.

*2Data collection period for the total emissions is from January to December of each year since fiscal 2020.

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Participation in Race to Zero

Race to Zero is an international campaign calling on companies, municipalities, investors, universities, and other nongovernmental actors around the world to commit to halving their emissions by 2030 and achieving virtually zero greenhouse gas emissions by 2050, and to take immediate action to achieve this goal.

Sumitomo Forestry participated in the Race to Zero through Business Ambition for 1.5°C in September 2021, ahead of the 26th Conference of the Parties to the United Nations Framework Convention on Climate Change (COP26) held in Glasgow, UK.
By signing the Business Ambition for 1.5°C, we are declaring our commitment to net zero by 2050, and our participation in Race to Zero was announced at COP26, held in October through November 2021.

Aiming for 100% Renewable Energy and Joining the RE100

The Sumitomo Forestry Group positions the realization of carbon neutrality by leveraging forests and wood resources as one material issue that needs to be addressed and strives to engage in energy-saving activities and use of renewable energy. As part of these initiatives, we joined the international RE100* initiative that aims for 100% of electricity used to be from renewable energy in March 2020 to accelerate our efforts to reduce greenhouse gases.

By 2040, we aim to utilize 100% renewable energy for the electricity used for our Group business activities and for the fuel for our power generation operations.

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

Progress Towards the RE100 Goal

In fiscal 2023, amount of renewable energy introduced in the electricity used in Sumitomo Forestry Group's business activities resulted in 19.6% of the total amount of electricity used by the entire Group, such as solar panels installed in model homes and for private use of power generated by biomass power generation plants (including adjacent wood chip manufacturing plants for fuel), etc. This is an increase of 2.1 percentage points from fiscal 2022. In addition, ratio of biomass-derived fuel to the fuel consumption of the power generation business is 94.0% (calorific value conversion).

In the Mid-Term Sustainability Targets 2024 announced in February 2022, we have set a goal of reaching 100% renewable energy for our business operation by 2030 for the part achievable on our own, and the target for fiscal 2024 is 35.1%.

*Excluding offices and other facilities located in New Zealand, where the national government is aiming for RE100 in 2035 (with actual achievement of 5.4% in fiscal 2023).

Renewable energy consumption rate within the power consumption of the entire group
(FY 2023)


Participation in the GX League

In order for Japan to achieve carbon neutrality in 2050 and contribute to global carbon neutrality while enhancing industrial competitiveness, it is important for companies and others to lead the transformation of the entire economic and social system (GX: Green Transformation), including stakeholders other than themselves.

In February 2022, the Ministry of Economy, Trade and Industry (METI) announced the "GX League Basic Concept”. The GX League is a forum for companies that are taking on the GX challenges and aiming to achieve sustainable growth in the present and future society to collaborate with a group of companies, government, and academia that are making similar efforts. Under Emissions Trading Scheme (GX-ETS), participating companies set their own emission reduction targets, disclose their progress, and work to achieve targets.
Sumitomo Forestry has been participating in the GX League since 2023 and has been making efforts to reduce emissions.

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