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 due to population increase and economic growth in developing countries.

The Sumitomo Forestry Group mainly engages in the timber and building materials business and the housing business, for which we do not use a high-volume of water. However, we are also conducting businesses in which we use water as a valuable resource. We are committed to reducing the use of water in particular in these businesses, while conducting risk assessments and examining measures against possible problems.

Management of Water Use in Business

The Sumitomo Forestry Group has been monitoring water consumption and related water sources at its bases where actual water usage is measurable, such as at buildings owned by the Sumitomo Forestry Group, as well as at its manufacturing plants inside and outside Japan. As a result of analyzing the water use of all Group companies in fiscal 2016, we discovered that eight Group companies, which make up 7.2% of our consolidated net sales, collectively account for 91.8% of our total water use. Therefore, we have positioned these eight companies as important companies in our water management. We first conducted risk assessments on water use at five of the eight companies in Japan and set the specific measures to address any cases of water shortages at the companies. We have also grasped the actual state of water use at the three overseas companies that use large amounts of water.

In the Mid-Term Sustainability Targets, we set the targets for groupwide water consumption and have been managing progress. In fiscal 2025, the Group's total water consumption amounted to 2,895,000 m³, decreased by 44,000 m³ from the fiscal 2024 level. The main factors contributing to this decrease include a decrease in the sprinkler use frequency at Canyon Creek Cabinet as well as a decrease in water usage at Kutai Timber Indonesia (KTI). At the end of 2024, KTI changed its water distribution method. It also installed a flow meter to detect water leakage as early as possible, and these measures led to a decrease in its water usage. Going forward, we will make efforts to achieve the 2027 target of reducing our water use to 2,990,000 m³ or less.

Sumitomo Forestry conducted sample surveys on water used by partner companies at its housing construction sites in fiscal 2015 to grasp the amount of water consumed in its supply chain. According to the survey results, the volume of water used at our housing construction sites is estimated to be approximately 0.0887 m³ per 1 m² of floor area.

Water Consumption (Water Withdrawal)*

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

Initiatives in the Manufacturing Business

The Imari Plant of Sumitomo Forestry Crest, which manufactures synthetic resin adhesives and other products, uses industrial water to cool its manufacturing equipment. For water conservation, the water used for cooling is reused to dilute the wastewater discharged from the plant and for other purposes. In addition, from fiscal 2018, wastewater treated by coagulation sedimentation is further treated biologically to reduce the amount of water necessary to dilute the wastewater discharged from the plant for water quality management. Due to this and other new water-saving measures, the use of industrial water at the plant decreased by 63% from the fiscal 2018 level to 54,750 m³ in fiscal 2025.

KTI in Indonesia, which is the largest water consumer among Sumitomo Forestry Group companies, installed flow meters to grasp the actual status of its water use in 2025. As a result, the company detected water leaks from the piping system laid underground at the log yard and repaired them. The installation of flow meters has enabled the company to track its water use and raise its water-saving consciousness.

Initiatives in the Housing Business

Sumitomo Forestry proposes the use of water-saving equipment for new custom-built detached houses and adopts water-saving toilets, showers, faucets and the like as standard equipment for the houses built by the company. Since 2016, we have also installed rainwater tanks at some of Sumitomo Forestry homes. 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 26.9 percentage points from 50.0% in fiscal 2024 to 76.9% in fiscal 2025.
In the Mid-Term Sustainability Targets Phase 2 (2025–2027), we aim to maintain a 100% adoption rate for water-saving toilets*² in new housing and will continue to promote this initiative.

*1Calculated based on the number of completed custom-built detached houses

*2JIS Category II type (flush water volume of 6.5 liters) and more water-saving types

Water Intake Amount in Areas with Water Stress

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

Participation in Relevant Initiatives

The Sumitomo Forestry Group has been answering the CDP Water Security Questionnaire and disclosing even more detailed information about its measures to deal with water-related risks since fiscal 2017.