Mid-Term Sustainability Targets as part of 2024 Mid-Term Management Plan

Material Issue 2 
To realize carbon neutrality by leveraging forests and wood resources

Material Issue 2

Material Issue 2 
To realize carbon neutrality by leveraging forests and wood resources

Contributing to the decarbonization of society by reducing our own GHG emissions, by offering timber and wood products that sequestrate carbon, and by providing low-carbon/carbon-free products and services.

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 , 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 timber, we will promote long-term carbon fixation value of timber, enhance competitiveness of domestic timber, 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.

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

Material Issue 2 Impact (Influence)
To realize carbon neutrality by leveraging forests and wood resources

Contributing to the decarbonization of society by reducing our own GHG emissions, by offering timber and wood products that sequestrate carbon, and by providing low-carbon/carbon-free products and services.
Reducing energy consumption (greenhouse gas emissions) throughout all of society by reducing the housing related energy use, which has the majority of energy use/ time spent in daily life.
Heightening environmental awareness of consumers (residents)
Contributing to the reduction of the environmental impact and solutions to climate change by achieving SBT and RE100
Building a sustainable society by providing sustainable architecture
Building a new forest value creation business

Management of Material Issue 2

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.

Management of Each Target

Specific steps based on issues and strategies Indicators for Evaluation Managing department FY2021
result
FY2022
target
FY2023
target
FY2024
target
Promotion of decarbonization Fixed amount of CO2 in domestic company-owned forests
(t-CO2)
Environment and Resources Division 13,476 thousand 13,547 thousand 13,617 thousand 13,758 thousand
Carbon stock from production forests by overseas afforestation companies
(t-CO2)
10,133 thousand 10,133 thousand 10,133 thousand 10,133 thousand
Specific steps based on issues and strategies Indicators for Evaluation Managing department FY2021
result
FY2022
target
FY2023
target
FY2024
target
Promotion of decarbonization (scope 1, 2) Greenhouse gas emissions
(t-CO2e)
Percentage change from fiscal 2017
All Sumitomo Forestry Group Companies 370,772
+0.3
354,368
▲4.2
340,020
▲8.0
301,290
▲18.5
Sumirin Denki subscription rate (%) Electricity sale after FIT Housing and Construction Division - 40.0 45.0 45.0
New owner's purchased power - - 37.0 50.0
Renewable energy introduction rate [Efforts to achieve RE100] (%)* All Sumitomo Forestry Group Companies - 3.7 7.2 35.1

* Excludes self-consumption from biomass power generation business and establishments located in New Zealand where 100% renewable energy is expected after 2030 in the whole country.

Specific steps based on issues and strategies Indicators for Evaluation Managing department FY2021
result
FY2022
target
FY2023
target
FY2024
target
Promotion of decarbonization (scope 3) ZEH order ratio (%) Housing and Construction Division 67.4 75.0 75.0 80.0
Environmentally friendly remodeling order rate for Customers (%) - 70.0 72.0 75.0
Environmentally friendly products*1 Order rate (%) 58.9 60.0 61.0 62.0
[New custom-built detached houses] BELS acquisition rate*2 (%) - 98.5 98.5 98.5
[House and land package] Environmental equipment (PV / FC) installation rate (green smart rate) (%) - 15.0 20.0 30.0
Environmentally friendly remodeling order rate for Owners (%) - 65.0 67.0 70.0
Environmentally friendly remodeling order rate for Customers + Owners (%) - 67.3 69.3 72.2
[MOCCA (Timber Solutions)] Number of proposals based on basic plan (cases) - 24 26 28
Amount of electricity supplied by renewable energy business*3 (MWh) Environment and Resources Division - 751,110 764,701 856,022
New forest value creation business-based profit, loss and income ratio expansion - Examination of numerical targets Development of numerical targets Achievement of numerical targets
Environmental certification
Number of projects targeted for Edge (Asia) (cases)
Overseas Housing and Real Estate Division - 1 1 1
Energy Tax Credit*4 Number of target units (US) (houses) - 9,061 13,703 15,574

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

*2 At the start of construction of the main unit

*3 Investment ratio

*4 Tax deduction for housing that meet criteria (2,000 dollars per building) The amount of energy for air conditioning will be 50% or less of 2006.

Specific steps based on issues and strategies Indicators for Evaluation Managing department FY2021
result
FY2022
target
FY2023
target
FY2024
target
Utilization of Sustainable Forest Resources Sales quantity of KIKORIN-PLYWOOD (Month) (m3) Timber and Building Materials Division - 32,000 35,000 35,000