Sustainable Forest Management

Protecting Domestic Forest Resources

Basic Policy

In recent years, there has been a growing concern in Japan that the nationwide deterioration of planted forests, such as Japanese cedar and cypress forests, is impairing the public benefits of forests, including the water source recharge function. It is said that the profitability of the forestry industry has decreased due to low lumber prices, which has made it impossible for companies in the industry to properly care for their forests, such as by thinning. In response, the Japanese government aims to achieve “green growth” toward carbon neutrality by 2050. To this end, the government is promoting the use of wood in buildings to develop the forestry and lumber industry into a growth industry while ensuring the appropriate management of forests through reforestation and other activities. Sumitomo Forestry will contribute to the achievement of the Japanese government's goal by expanding the area of forests managed by the company, introducing smart forestry, planting fast-growing trees, developing afforestation and silviculture technologies, expanding its container-grown seedling business, and promoting solution businesses that utilize ICT.

Breakdown of Forests Owned by Sumitomo Forestry (as of December 31, 2025)

Breakdown of Forests Owned by Sumitomo Forestry

Preserving and Increasing Forest Resources Through the Management of Forests Owned by Sumitomo Forestry

Sumitomo Forestry owns a total of approximately 48,000 hectares (about 1/800 of the national land area) of forest land area in Japan. These forests are categorized into “working forests", where the production of wood is the priority and "conservation forests", where environmental conservation is the priority.

Sumitomo Forestry acquired forestry certification from Japan's Sustainable Green Ecosystem Council (SGEC)*1 for all its forests*2 in 2006 and have received third-party evaluations to confirm that the forests are being properly managed, including with regard to measures to conserve biodiversity. Also, for forests purchased after the acquisition of the forest certification, we have them evaluated for certification, and our certification rate is 100%.

Forest operations include appropriate thinning, which helps preserve and increase forest resources, and we take into consideration the surrounding environment including the ecosystem. Sumitomo Forestry also aims for highly productive management of its forests based on operational plans that follow the principle of performing the appropriate management for the appropriate tree species on the suited land.

*1Japan's own forestry certification system through which forest management is verified as sustainable by third parties. Certification is based on seven criteria that include the preservation of biodiversity and the conservation and maintenance of soil and water resources. Due to the June 2016 approval of mutual recognition between the certification system and the PEFC*3 international forest certification system, the international recognition of the system has increased

*2The forests owned by Sumitomo Forestry exclude the lands leased to Kawanokita Development Co., Ltd., which is a Sumitomo Forestry Group company responsible for operating a golf course, and the surrounding forest. Newly purchased forests are excluded because they underwent expanded inspections during the subsequent fiscal year.

*3The Programme for the Endorsement of Forest Certification (PEFC) is an international NGO that fosters the mutual recognition of the certification standards created in each country and region as criteria to be shared internationally. Presently, 44 national and regional forest certification systems are mutually recognized under the PEFC (according to the website of the PEFC).

Distribution and Area of Forests Owned by Sumitomo Forestry (as of December 31, 2025)

Distribution and Area of Forests Owned by Sumitomo Forestry (as of December 31, 2025)

Forestry Revitalization Initiatives

Containerized Seedling Production for Regional Revitalization

An increasing number of municipalities are working to foster the use of forest resources that are not yet effectively utilized and to revitalize the forestry industry as one of their regional revitalization measures. Furthermore, the area of reforestation after clear cutting is increasing as the coniferous trees planted after World War II have entered the harvest season. It is desirable to establish a stable supply system for seedlings, but it is expected that the supply will become insufficient in the future due to a decrease in the number of growers.

Sumitomo Forestry was one of the first companies to modernize containerized seedling production and began operating seedling production facilities by utilizing its own developed production technology. By controlling temperature and humidity in the facilities, we are able to produce seedlings year-round, dramatically increasing production per unit of area compared to conventional open-air seedling cultivation. We are also cooperating with local municipalities to contribute to regional revitalization by employing local people for seedling production and developing and spreading the use of new technologies.

Expanding Sumitomo Forestry’s Seedling Production Facilities across the Country

We opened a seedling production facility in Hyuga City, Miyazaki Prefecture in 2012, and then opened a similar facility in Mombetsu City, Hokkaido. Subsequently we opened seedling production facilities in Gero City, Gifu Prefecture in fiscal 2016, Motoyama Town, Kochi Prefecture in fiscal 2017, Midori City, Gunma Prefecture in fiscal 2018, and Minamiaizu Town, Fukushima Prefecture in fiscal 2019. We expanded the facilities in Motoyama Town, Kochi Prefecture and in Midori City, Gunma Prefecture in fiscal 2025. Currently, we have a system capable of producing a total of 2 million seedlings per year nationwide.

In addition to producing seedlings at our own facilities, in fiscal 2023, we expanded the development of seed orchards for selected mother trees, and in fiscal 2024, we concluded an agreement with the Tokyo Metropolitan government regarding the production of pollen-free cedar trees. We accelerated efforts to supply seedlings to meet the demand for such trees as a countermeasure against hay fever.

Sumitomo Forestry's seedlings production systems

Sumitomo Forestry's seedlings production systems

Initiative to Plant Fast-Growing Trees

Sumitomo Forestry has started an initiative to plant fast-growing trees, which have been gaining more attention in recent years. Fast-growing trees are those that grow faster than Japanese cedar and Japanese cypress trees and can be harvested in a shorter felling cycle, and include Chinese fir, bead trees, and willow trees.

The Hyuga Forestry Office is conducting the test planting of Chinese fir and other tree species in the company-owned forests in Kumamoto and Miyazaki Prefectures. By monitoring the growth of the trees, the office staff are examining their potential as a new tree species to be planted for reforestation, with a focus on the reduced frequency of weeding and the comparison of growth speed with Japanese cedar trees.
In addition, the Environment and Resources Division and the Tsukuba Research Institute are cooperating to plant fast-growing broadleaf trees suitable for use as fuel material.

Chinese fir

Chinese fir

Development of Delivery Drones for the Forestry Business

Workers need to carry seedlings weighing roughly 10 kg on their back and also transport other materials again and again when planting Japanese cedar, Japanese cypress and other tree species. Particularly in Japan, the terrain is quite hilly and places a huge physical burden on workers, which makes it difficult to secure a labor force.

That is why Sumitomo Forestry has been advancing the development of drones to transport these seedlings jointly with drone manufacturers and distribution companies that have proven track records in the agricultural field. Repetitive proof-of-concept tests were conducted in the company-owned forests by flying drones safely over complex terrain and in harsh weather to ensure safe drone flight and reliable unloading of seedlings. Based on these tests and various improvements, sales of the Morito Forestry Drone to transport seedlings began throughout Japan in fiscal 2020.

In the course of our sales activities, we have learned that there is a growing need in the field to transport not only seedlings but also heavy materials such as those used to prevent damage by animals, which has been on the rise in recent years. Accordingly, improvements were made on the drone for the transportation of forestry materials, and the maximum loading capacity has been increased from 8 kg in the previous model to 55 kg. In fiscal 2025, we produced a promotional video and brochures as part of our initiative to promote sales of the Morito Forestry Drone, and expanded its sales network.

Morito Forestry Drone Morito Forestry Drone

Morito Forestry Drone

FRD Forestry Roadway Design Support System

Current Status of Strip Road Design in Japan

Forests in Japan often have insufficient forest roads or strip roads in place, which prevent smooth management of forests and transport of harvested wood. Currently, in order to create forest roads or strip roads, lines are drawn by hand over a paper topographical map before visiting the site to see if that plan for the road network can be implemented. This process of examination is usually done over and over again. The reality is that the process of making the plan and checking and verifying it on-site relies heavily on personal intuition and experience, and takes a great deal of time and labor.

Forestry road network design using FRD

FRD is a software application co-developed with Mr. Hiroaki Shirasawa (currently working at the Forestry and Forest Products Research Institute) to support road network design. It is used to design a network of forest roads and strip roads by utilizing precise topographic data obtained by airborne laser mapping. The main feature is an automatic design function to create the line drawings by inputting the departure and destination sites on the operation screen. Users of the software can create the line drawn plans that can be maintained at low cost based on parameters, including requirements such as longitudinal slope and the curvature radius, width, and operation costs specified in advance. In addition, we have devised a way for the software to recognize dangerous terrain. This software packs the right features necessary for the job, such as allowing the design of safety lines that are less likely to break and safer, avoiding potential collapse and other circumstances when creating a plan. The on-site exploration of the line drawn plans for roadways designed in the software offers efficient on-site verification. We are currently developing additional features, such as an automatic design function that takes slope stability into account, a function to output data in CAD format, and functions necessary for the utilization of the software in overseas forests.

FRD control panel

FRD control panel

Forest road design to avoid dangerous places (in red frame)

Forest road design to avoid dangerous places (in red frame)

Spreading the Use of the Winch-Assist Type Forestry Machinery

Sumitomo Forestry has been making improvements and conducting demonstration tests on the winch-assist forestry machine (tether), which was developed jointly with Nippon Caterpillar LLC and other companies using subsidies from the New Energy and Industrial Technology Development Organization (NEDO). In 2026, we plan to conduct a demonstration test on-site in Yamanashi Prefecture.

A tether is a forestry machine that assists heavy equipment for logging and hauling out on sloping terrain, pulling the equipment by wire to maintain its stable posture. By using a tether, forestry operations using heavy machinery will become possible on slopes where heavy machinery could not be used previously, which is expected to improve on-site security and productivity.

We will continue to use the forestry machine to improve the safety of operations on sloping terrain and to realize environmentally conscious forestry.

Work using the Tether

Work using the Tether

Improvement and Popularization of a Remote-Type Underbrush Clearing Machine

Sumitomo Forestry has been working on the improvement and popularization of remote-type underbrush clearing machinery for use in its forestry business. It is supplied by MDB of Italy and has high crushing ability. Compared with a conventional hand-held machine, workers can do the site preparation work for planting and underbrush clearing work more easily with the machine, which is labor-saving and contributes to higher operational safety as it can be operated remotely.
We introduced the machine for use in our own forests in fiscal 2023 and used the machine for site preparation on land extending over a total of 75 hectares and for clearing underbrush on land extending over a total of 61 hectares in our forest located in Mombetsu as of the end of fiscal 2025.
We are also participating in a consortium to conduct research for the Fukushima Institute for Research, Education and Innovation and are developing the technologies for remote-type site preparation and underbrush clearing machines.

Underbrush clearing machine used in the forestry business

Underbrush clearing machine used in the forestry business

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