Express Its Support of the TCFD and TNFD

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.

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

*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 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.

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.

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

Progress Towards the RE100 Goal

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.