Material Issue 2

Related SDGs

Basic Policy

Since wood absorbs and fixes CO₂ in the process of growth and only a small amount of CO₂ during production, it is important to actively use wood for the transition to decarbonized society.

Since founding, the Sumitomo Forestry Group has been developing its business centered on wood, and will continue to propose further utilization of wood in the fields of forest, wood, and construction. With respect to forest, we will promote zoning forest management to expand conservation forest that absorb carbon dioxide and accelerate logging and replanting of working forests that promote carbon fixation. Carbon offset contributes to decarbonization of other companies and society, and realizes sustainable business. Regarding wood, we will promote long-term carbon fixation value of wood, enhance competitiveness of domestic wood, and promote wooden construction and wood conversion of buildings. In construction, we will contribute to decarbonization of society as a whole by promoting decarbonized architecture by establishing and standardizing decarbonization design methods such as promoting LCCM housing and net-zero carbon buildings in Japan and overseas.

The Sumitomo Forestry Group's internal and supply chains, which provide the value of wood, will steadily implement SBT-based greenhouse gas emissions reduction targets, including the achievement of the RE100.

Impact on Society and the Environment

Management of Material Issue 2 (FY2022)

In Mid-Term Sustainability Targets 2024, Material Issue 2 is divided into 19 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.

Promotion of decarbonization

Although greenhouse gas emissions amounted to 355,928 t-CO₂e and did not reach the target for fiscal 2022, we were able to reduce emissions from 370,772 t-CO₂e in fiscal 2021. One of the reasons for the reduction from fiscal 2021 is that, while emissions in the Global Housing, Construction and Real Estate Division increased due to more frequent use of commercial vehicles after the restrictions due to coronavirus disease (COVID-19)were lifted, the ratio of coal co-firing was reduced at Mombetsu Biomass Electric Power. In the Medium-Term Management Plan(2022-2024), we aim to achieve 289,469 t-CO₂e in the final year of 2024 (down 21.7% from the fiscal year ended March 31, 2018) by continuing to reduce the ratio of coal co-firing at Mombetsu and promoting convert to renewable energy efforts in order to achieve RE100.
The percentage of orders for ZEH type houses out of new custom-built detached housings increased 9.8 percentage points from 67.4% in fiscal 2021 to 77.2% in fiscal 2022, achieving the 75% target on schedule.
We have achieved positive results by making people aware of and actively utilizing the government's ZEH subsidies and the "Children's Future Housing Support Project," which provides subsidies for energy-saving home improvements by households raising children or of young couples, and we plan to continue promoting the various subsidies in accordance with customer needs. We will continue our efforts to promote the ZEH penetration, targeting 80.0% in fiscal 2024, the final year of Mid-Term Sustainability Targets.

Promotion of decarbonization (scope 1, 2)

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
Greenhouse gas emissions(t-CO2e) Percentage change from fiscal 2017		All Sumitomo Forestry Group Companies	329,700 ▲10.8	355,928 ▲3.7	△	309,800 ▲16.2	289,469 ▲21.7
Sumirin Denki subscription rate (%)	Electricity sale after FIT	Housing Division	40.0	50.3	○	45.0	45.0
	New owner's purchased power		-	-	-	37.0	50.0
Renewable energy consumption rate [Efforts to achieve RE100] (%)*		All Sumitomo Forestry Group Companies	4.1	3.9	△	6.1	35.1

*Excluding offices and other facilities located in New Zealand, which is aiming to achieve RE100 by 2035 as a whole nation.

Promotion of decarbonization (scope 3)

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
Percentage of orders for ZEH type houses out of new custom-built detached housings (%)	Housing Division	75.0	77.2	○	75.0	80.0
Environmentally sound remodeling order rate for Customers (%)		70.0	64.6	×	72.0	75.0
Rate of orders for Environmentally sound products*1(%)		60.0	57.9	×	61.0	62.0
[New custom-built detached houses] BELS acquisition rate*2 (%)		98.5	98.4	×	98.5	98.5
[House and land package] Environmental equipment (PV / FC) installation rate (green smart rate) (%)		15.0	20.3	○	30.0	30.0
Environmentally friendly remodeling order rate for Owners (%)		65.0	60.7	×	67.0	70.0
Environmentally friendly remodeling order rate for Customers + Owners (%)		67.3	62.5	×	69.3	72.2
[MOCCA (Timber Solutions)] Number of proposals based on basic plan (cases)		24	20	△	26	28
Amount of electricity supplied by renewable energy business*3 (MWh)	Environment and Resources Division	751,110	746,486	△	764,701	856,022
New forest value creation business-based profit, loss and income ratio expansion		Examination of numerical targets	Scheme under construction	‒	Development of numerical targets	Achievement of numerical targets
Environmental certification number of projects targeted for Edge(Asia)(cases)	Global Housing, Construction and Real Estate Division	1	1	○	1	1

*1(1) local seedlings, (2) permeable paving material, (3) green wall construction, (4) rooftop greening, (5) biotope and (6) use of recycled materials

*2At the start of construction of the main unit

*3The figures are for Mombetsu Biomass Electric Power, Hachinohe Biomass Electric Power, Kawasaki Biomass Electric Power, Tomakomai Biomass Power, Kanda Biomass Energy, and Kashima Solar Power Plant. For equity-method affiliates, electricity supply is calculated according to their equity share.