Basic Policy

Around the world, there is a growing sense of crisis over water shortages. It is expected that this problem will become more and more urgent as the demand for water rises with population increase and economic growth in developing countries.

The primary businesses of the Sumitomo Forestry Group include the Timber and Building Materials Business and the Housing Business, which operate on a business model that does not use a high-volume of water. However, our businesses are expanding into sectors that do use water as a valuable resource. Our policy is to reduce the amount of water used with emphasis on these businesses while conducting risk assessments and examining countermeasures for problems that arise.

Management of Water Use in Business

In addition to manufacturing plants inside and outside Japan, since fiscal 2012, the Sumitomo Forestry Group has begun examining the consumption of water and the associated sources at bases where actual water usage is measurable, such as at buildings owned by the Sumitomo Forestry Group. We discovered 91.8% of water use is at eight group companies which make up 7.2% of the consolidated net sales by analyzing the water use of all Group companies in fiscal 2016. Therefore, we have positioned these eight companies as important water management companies and first conducted risk assessments for water use at five companies in Japan and brought together specific measures to address any cases of insufficient water. The Sumitomo Forestry Group has also begun to grasp the actual state of water use even at three overseas companies that use large amounts of water.

From fiscal 2016 to fiscal 2018, our water consumption increased significantly due to the operation of the Mombetsu Biomass Power Generation Plant and Hachinohe Biomass Power Generation Plant. Biomass power generation leads to increased water usage because power is generated by burning wood and other biomass fuel to boil water and create steam for powering turbines.

The Mid-Term Sustainability Targets set targets for Group-wide water consumption and manages progress. In fiscal 2024, the Group's total water consumption was 2,939 thousand m³, an increase of 23 thousand m³ over 2023. One of the main factors was the increased water usage at Vina Eco Board in Vietnam due to more frequent watering, along with increased water consumption at the Mombetsu Biomass Electric Power resulting from higher power generation, and greater irrigation of plants within the premises at Sumitomo Forestry Landscaping. In the future, efforts will be made to reach the 2027 target figure of 2,990 thousand m³ or less.

Sumitomo Forestry conducts sample surveys of water used by partner companies at on-site construction of houses in fiscal 2015 to grasp the water consumption in the supply chain, which found the volume of water used per 1m² of floor area is approximately 0.0887m³.

Water Consumption (Water Withdrawal)^*

* Covers sites where actual water consumption is measurable, such as at buildings owned by the Sumitomo Forestry Group

Initiatives in Manufacturing Business

The Imari Plant of Sumitomo Forestry Crest, which manufactures such products as synthetic resin adhesives, uses industrial water to cool its manufacturing equipment. Afterwards, this water is reused to dilute factory wastewater and for other purposes as a water-conservation measure. In addition, from fiscal 2018, wastewater (coagulation sedimentation treated water) is further treated biologically to control the amount of water necessary for dilution for factory wastewater water quality management. This and other new water-saving measures led to an industrial water usage of 54,900m³ in fiscal 2024, a 63% decline compared to fiscal 2018.

In addition, at KTI in Indonesia, where water resource consumption is the highest, flow meters will be installed starting in 2025 to better understand the current situation. Based on the findings, efforts will be made to reduce water consumption.

Initiatives in Housing Business

Sumitomo Forestry offers products for new custom-built detached houses that enable effective use of water resources. Specifically, we offer customers water-saving toilets, showers, and faucets as standard features, and since 2016, some of our products have also included the installation of rainwater tanks. Through these initiatives, we aim to raise customers' awareness of water conservation while striving to expand our product lineup to meet their needs.
In Japan, although each housing unit is equipped with a water meter, Sumitomo Forestry offers water heaters equipped with a function that allows residents to monitor their hot water usage through a remote control screen or similar interface.
The installation rate^*1 of these water heaters increased by 9.4 points from 42.1% in fiscal 2023 to 51.5% in fiscal 2024.
As part of the Mid-Term Sustainability Targets Phase 2 (2025–2027) starting in 2025, we aim to maintain a 100% adoption rate of water-saving toilets^*2 in new housing and will continue to promote this initiative.

*1Calculated based on the number of completed units. The target is custom-built detached housing business

*2JIS Category II type (flush water volume of 6.5 liters or less)

Water Intake Amount from Areas with Water Stress

*Water intake amount data of sites determined to be Sensitive sites in Locate phase of TNFD and LEAP analysis (Indonesia: Kutai Timber Indonesia, AST Indonesia; Vietnam: Vina Eco Board)

Participation in Relevant Incentives

The Sumitomo Forestry Group provides answers to the CDP Water Security questions and discloses more detailed information about efforts on risks related to water since fiscal 2017.