Material Issue 1
To enhance the value of forests and wood through sustainable forest management
Material Issue 1
Material Issue 1
To enhance the value of forests and wood through sustainable forest management
Nurturing forests to enhance and harness the value of wood and other forest resources.
Related SDGs


Basic Policy
As global environmental problems such as climate change, resource depletion, and biodiversity loss become more serious, expectations for wood and forests that produce natural resources and biological resources to solve these problems are rising. Forests not only have functions of absorbing and fixing CO2, conserving biodiversity, and producing wood building materials, fuel materials, or the like, but also have various public benefits such as water source recharge, soil conservation, and sediment disaster prevention.
Sumitomo Forestry Group has developed various businesses centered on wood, such as forestry business, timber and building material distribution and manufacturing business, housing and building business, and renewable energy business. "The Sumitomo Forestry Group utilizes wood as a healthy and environmentally friendly natural resource to provide a diverse range of lifestyle-related services that contribute to the realization of a sustainable and prosperous society. All our efforts are based on Sumitomo’s Business Spirit, which places prime importance on fairness and integrity for the good of society." In order to realize our Corporate Philosophy, we intend to enhance value of forest resources by promoting further integration of business and ESG and by conducting sustainable forest management and use of wood.
Impact on Society and the Environment
Material Issue 1 | Impact (Influence) |
---|---|
To enhance the value of forests and wood through sustainable forest management Nurturing forests to enhance and harness the value of wood and other forest resources. |
Contribution to measures against global warming through CO2 fixation |
Contributing to the protection of rare species and other conservation of biodiversity | |
Contribution to revitalization of the forestry business by promoting forest sustainability | |
Securing seedlings for reforestation and promoting circular use of forest resources from harvesting to replanting | |
Contribution to greater biomass power generation (renewable energy supply) capacity in Japan | |
Contribution to revitalization of the forestry business by utilizing domestic timber | |
Enhancing standardization, awareness, and added value of sustainable and certified wood and wood products |
Management of Material Issue 1 (FY2022)
In Mid-Term Sustainability Targets 2024, Material Issue 1 is divided into 9 evaluation indicators, and management is carried out by incorporating them into annual activity policies and measures of the management department. We also assess the impacts that the material issue has on society and the environment.
Utilization of Sustainable Forest Resources
The Sumitomo Forestry Group produces seedlings needed for reforestation after harvesting (clearcutting) in Japan. In fiscal 2022, the number of seedlings shipped was 1.88 million compared to the planned 2.23 million, falling short of the plan due to the fact that fall demand did not meet our anticipation, but the number exceeded the fiscal 2021 level (1.46 million), a record high, due to a recovery in reforestation demand. In fiscal 2023, we will contribute with our effort to sustainable forest management by increasing the number of seedlings, focusing on spring shipments, which are in high demand.
Results
Ratings in the table below
Achieved: ◯ Not achieved but improved from previous year: △ Not achieved and declined compared to previous year: ✕
Indicators for Evaluation | Managing department | FY2022 target |
FY2022 result |
FY2022 value |
FY2023 target |
FY2024 target |
---|---|---|---|---|---|---|
Domestic and overseas certified forest area (ha) | Environment and Resources Division | 242,493 | 231,153 | △ | 242,493 | 242,493 |
Area of forest plantation with in-house produced seedlingsDomestic forest (ha) | 892 | 753 | △ | 892 | 1,012 | |
Seedlings suppliedDomestic forest (unit: 10 Thousand) | 223 | 188 | △ | 223 | 253 | |
Amount of biofuel material used (such as wood chips and pellets)*1 (t) | Environment and Resources DivisionTimber and Building Materials Division | 1,832,890 | 1,648,729![]() |
△ | 2,073,948 | 2,482,964 |
Percentage of sustainable wood used as primary building material*2 (%) | Housing Division | 100 | 100![]() |
○ | 100 | 100 |
Maintaining of SGEC certified area*3(%) | Environment and Resources Division | 100 | 100 | ○ | 100 | 100 |
*1FIT fuel material and non-FIT fuel material handled by Japan Bio Energy, Okhotsk Bio Energy, Sumitomo Forestry Wood Products, and Sumitomo Forestry's Timber and Building Materials Division are eligible. For Sumitomo Forestry Wood Products, the KPI has been changed to include only FIT fuel material, and from fiscal 2022, the KPI excludes non-FIT fuel material and adds log-derived FIT fuel material to the total. The impact of this change is a decrease of about 200 thousand tons.
*2"Sustainable wood" is defined as certified wood and pre-certified timber , wood from planted forest, natural forest wood where forestry management and distribution can be assessed as sustainable (excluding wood from conversion forests ), and recycled timber.
*3Except for land leased to Kawanokita Development and surrounding forests
Biodiversity Conservation
We sell native species logs mainly to our detached housing business, to the greening business in urban spaces such as parks, office buildings, and factories, and to general customers such as garden landscapers and plant wholesalers.
In fiscal 2022, we were able to sell 521,000 trees, more than planned, the volume increasing due to construction delays from fiscal 2021, caused by the impact of the pandemic of coronavirus disease (COVID-19). We will continue to increase the sale of native species logs that are appropriate for the region, thereby strengthening efforts to conserve the ecosystem and promoting regional development that makes the most of the natural environment.
Results
Ratings in the table below
Achieved: ◯ Not achieved but improved from previous year: △ Not achieved and declined compared to previous year: ✕
Indicators for Evaluation | Managing department | FY2022 target |
FY2022 result |
FY2022 value |
FY2023 target |
FY2024 target |
---|---|---|---|---|---|---|
Sales of native species logs (unit: trees) | Housing Division | 470,000 | 521,000 | ○ | 480,000 | 500,000 |
Securing ratio of conservation forests in company-owned forests (%) | Environment and Resources Division | 30 or more | 30 or more | ○ | 30 or more | 30 or more |
Establishment of evaluation method for biodiversity conservation | Information collection | Information collection | ○ | Examination of evaluation criteria | Establishment of evaluation method |
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