Environmental Management Structure

The Sumitomo Forestry Group aims to contribute to the creation of a sustainable society in line with the Sumitomo Forestry Group Environmental Policy. To ensure that the Group is managed in accordance with the Policy, we have established an environmental management structure under which the President of Sumitomo Forestry assumes overall responsibility for environmental management. Also, we have obtained ISO 14001 international standard certification for our environmental management system. By steadily implementing a PDCA cycle based on this system, we are improving our environmental activities on a continual basis.

Under the supervision of the President and Representative Director, the General Manager of the Sustainability Department of the Corporate Division, who serves as environmental management officer, regularly checks progress on the environmental targets set by each department of the Sumitomo Forestry Group under the Mid-Term Sustainability Targets, and the results are reported to and deliberated by the Sustainability Committee to increase the effectiveness of the environmental activities.

In addition, matters discussed by the Sustainability Committee are reported to the Board of Directors by the Director in charge of promoting sustainability, thereby involving the Board in the monitoring of environmental performance. The Sustainability Committee, which includes Directors who also serve as Executive Officers, has oversight responsibility and is tasked with formulating and promoting initiatives to address medium- to long-term ESG issues, including climate change.

Environmental Management Structure

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Management of Mid-Term Sustainability Targets

Personnel in Charge of Environmental Management

Group Overall Environmental Representative	President (CEO)
Group Environmental Management Officer	General Manager, Sustainability Department, Corporate Division
Division Environmental Management Officers	General Manager, Management and Administration Dept. (Environment and Resources Div.), General Manager, Administration and Planning Dept. (Timber and Building Materials Div.), General Manager, Management and Administration Dept. (Overseas Housing Division), General Manager, Administration and Planning Dept. (Housing Div.), General Manager, Management and Administration Dept. (Real Estate Div.), General Manager, Lifestyle Service Dept. (Lifestyle Service Div.)
Department Environmental Managers	General Managers, presidents of group companies, etc.
Environmental activity personnel	Environmental promotion personnel

ISO14001 Certification

Sumitomo Forestry introduced an environmental management system in fiscal 1995 and acquired ISO14001 certification for its housing operations in fiscal 1997 ahead of other players in the housing industry. Subsequently, other divisions of Sumitomo Forestry also worked on the acquisition of certification, and in fiscal 2002, all divisions of Sumitomo Forestry in Japan had acquired this certification.
Furthermore, we are promoting the acquisition of certification across the Group, with a focus on businesses with significant environmental impact. Currently, six Group companies in Japan, including Sumitomo Forestry, have ISO 14001-certified environmental management systems, and six overseas Group companies, primarily manufacturing companies, have obtained the certification.
From among our consolidated subsidiaries, we mainly include those engaging in manufacturing and having large impact on the environment in the certification acquisition target. In fiscal 2025, the certification rate of targeted subsidiaries reached 94.8% (on a sales basis).

FY2025
ISO 14001
Certification Rate
(on a sales basis)

94.8%

Group companies		Date of Acquisition	Date of Renewal (3-year validity)
Multi-site Certification at Group Companies in Japan	Sumitomo Forestry Co., Ltd. (excl. overseas operations)	August 2002^*1	August 2025^*1
Multi-site Certification at Group Companies in Japan	Japan Bio Energy Co., Ltd.	August 2014^*2	August 2025^*1
Sumitomo Forestry Landscaping Co., Ltd.		November 2002^*2	July 2025^*3
Sumitomo Forestry Home Tech Co., Ltd.		March 2013^*2	July 2025^*3
Sumitomo Forestry Crest Co., Ltd.		September 2003^*2	October 2024^*3
Cohnan Kensetsu Inc.		March 2011	March 2023
Kutai Timber Indonesia (KTI)		August 2001	December 2025
Nelson Pine Industries Ltd. (NPIL)		July 2003	July 2025
PT. Rimba Partikel Indonesia (RPI)		October 2005	October 2023
PT. AST Indonesia (ASTI)	The first factory	January 2007	January 2025
PT. AST Indonesia (ASTI)	The second factory	January 2022	January 2025
Vina Eco Board Co., Ltd. (VECO)		March 2014	March 2023
Regal Innovations Pty Ltd　(Regal)		October 2019	August 2025

*1Certification was acquired by individual departments and divisions from 1997 before integrated ISO14001 certification was acquired for the entire company

*2Acquired by inclusion in Sumitomo Forestry's integrated certification

*3Acquired independently after inclusion in the expanded scope of Sumitomo Forestry's certification

Audits by an External Certification Body

Sumitomo Forestry Group companies covered by multi-site ISO14001 certification in Japan undergo routine reviews conducted once a year by the certification body JIC Quality Assurance Ltd. In fiscal 2025, 32 departments of the companies underwent recertification and transition reviews for ISO14001: 2015 (JISQ 14001: 2015).

As a result of these reviews, two cases of nonconformity and 46 opportunities for improvement were identified. On August 26, 2025, the companies under review were approved to sustain their registration after the assessment by the certification body.

For the two cases of nonconformity, we investigated the root causes, implemented measures to prevent reoccurrence, and shared the information across the board, including in other branches. For each of the opportunities for improvement, we examined improvement methods and took individual action. Issues common to all Group companies were shared with each of the companies by the Sustainability Department, and the status of improvement was confirmed through internal environmental audits. The audits were conducted with particular attention to the effectiveness of measures to ensure compliance with environmental laws and regulations, compliance mechanisms and of responses to (measures for) unachieved targets.

Internal Environmental Audits

In addition to reviews conducted by the external certification body, the companies covered by multi-site ISO14001 certification periodically carry out internal environmental audits. These audits are conducted by employees who have passed an exam to become internal environmental auditors upon completion of a training session accredited by the Japan Auditors Training Association (JATA).

Following the revision of the ISO 14001 international standard in September 2015, we mandated all relevant managers at the Group companies included in the scope of multi-site registration to attend the training session and pass the exam, thereby helping them deepen their understanding of the revision and enhance their leadership. As a result, the number of employees certified as internal environmental auditors has reached a cumulative total of 1,889 (as of the end of fiscal 2025).

Internal environmental audits were conducted at 56 departments, which were mainly the departments for which internal environmental auditors had pointed out lots of problems in the audits conducted in fiscal 2024. With respect to observed nonconformities and improvement proposals, the audited departments took corrective actions, conducted examinations and submitted a report on the corrections to the audit department. Then, the Sustainability Department compiled the audit results for management review.

Our overseas manufacturing companies have individually acquired ISO 14001 certification and conduct internal environmental audits.

Compliance with Environmental Laws and Regulations

The Sumitomo Forestry Group is striving to reduce the impact of legal risks and prevent the manifestation of these risks, including those related to the disposal of industrial waste, soil contamination and water pollution caused by toxic substances, noise, and vibration. We have been conducting surveys on our status of compliance with environmental laws and regulations to ensure that we have no inappropriate cases under the laws and regulations. In the latest survey conducted targeting our subsidiaries in Japan, no cases of legal incompliance were detected. We will continue to conduct surveys to ensure compliance with environmental laws and regulations across the Group.

Noise and Vibrations

The Sumitomo Forestry Group makes an effort to prevent noise and vibrations during housing construction. When complaints about noise or vibrations are received, the circumstances are recorded and the information is shared across the Group to prevent the occurrence of similar incidents.

Also, Sumitomo Forestry Crest confirms that noise levels on the site boundaries of its plants are below the statutory limit by regularly measuring the levels.

No complaints about noise or vibrations having a major impact on the environment were received from local residents during fiscal 2025.