Material Issue 2

Related SDGs

Basic Policy

Climate change has already caused a number of environmental issues and impacted people's lives. For example, natural disasters in the form of heat waves, torrential rainfall, flooding, typhoons, droughts as well as impacts on biodiversity and food supply. These pose a serious threat to humankind. To mitigate the impacts of climate change, it is important to reduce greenhouse gas emissions. It is needed to reduce these greenhouse gas emissions to net zero by 2050.

Since wood absorbs and fixes CO₂in the process of growth and only a small amount of CO₂during emissions occur during production, actively using wood greatly contributes to a 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 (FY2023)

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 (Scope 1 and 2) amounted to 335,673 t-CO₂e and did not reach the target for fiscal 2023 of 309,800t-CO₂e, we have been able to reduce emissions by 20,000 t-CO₂e since fiscal 2022. The main reason for this is that we were able to reduce the coal co-firing ratio at the Mombetsu Biomass Electric Power Plant, which is the main cause of greenhouse gas emissions, by 4.5 percentage points from 12.0% in fiscal 2022 to 7.5% in fiscal 2023. In fiscal 2024, the final fiscal year 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.

Sumitomo Forestry Group has set a target for ZEH order rate in an effort to reduce Scope 3 greenhouse gas emissions, especially Category 11 (use of sold products), which represents a particularly high proportion of emissions. The ratio of ZEH in the new custom-built detached houses orders increased by 2.5 percentage points from 77.2% in fiscal 2022 to 79.7% in fiscal 2023, and nearly reaching our target of 80% in the fiscal 2024 plan one year ahead of schedule.

We were able to achieve certain results because we disseminated details of the “Children's Eco Housing Support Program,” which provides subsidies for renovations that save energy in homes by households with children and young couples, and actively utilized the program. The other positive factor was a tailwind from soaring utility costs. We aim to spread ZEH by continuing to educate customers about life cycle costs (LCCs) and propose solutions.

*Percentage of electricity purchased by the Company generated from renewable energy. Excluding offices and other facilities located in New Zealand, which is aiming to achieve RE100 by 2035 as a whole nation.

*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.