Mission TREEING 2030

Aiming to create a decarbonized society by 2050 and keeping the 2030 target year for achieving the SDGs in mind, the Sumitomo Forestry Group formulated its long-term vision "Mission TREEING 2030" and its medium-term management plan "Mission TREEING 2030 Phase 1 (2022 to 2024)” in February 2022. Mission TREEING 2030 incorporates our ideal vision of the Sumitomo Forestry Group into our long-term business concept.
Mission TREEING 2030 sets out the following four strategies as our business policy: 1. Maximizing the value of forests and wood to realize decarbonization and a circular bioeconomy; 2. Advancing globalization; 3. Striving for transformation and the creation of new value; and 4. Transforming our business foundation for growth. To achieve this long-term vision, we aim to simultaneously create “Value for our planet,” “Value for people and society,” and “Value for the market economy” and enhance value in each of these areas without making any compromises. In 2025, we launched the medium-term management plan “Mission TREEING 2030 Phase 2” toward the achievement of the long-term vision.

— Making our planet safer and more secure for future generations —

By providing value to our planet, to people and society, and to the market and economic activities, we at the Sumitomo Forestry Group aim to make our planet safer and more secure for current and future generations of people and all living beings. With our long-held strengths in harnessing and expanding the value of forests and wood, we will further enhance the value and transform it into new power for the future.

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Wood Cycle

The Sumitomo Forestry Group is conducting business activities through a value chain based on wood, from forest management to wood processing and distribution, wooden building construction, and biomass power generation. We call this value chain “Wood Cycle.” We aim to contribute to a decarbonized society through the Wood Cycle, specifically by working to increase the amount of CO2 absorbed and fixed in the “Forests,” “Wood” and “Construction” fields and to boost carbon storage in timber for long-term carbon storage in wooden buildings. Through this business as a whole, we will contribute to CO2 absorption and fixation not only for ourselves but also for society at large.

Mid-Term Sustainability Targets and Material Issues

The Sumitomo Forestry Group formulated the Medium-Term Management Plan "Mission TREEING 2030 Phase 1 (2022–2024)” as the first phase of its long-term vision "Mission TREEING 2030.” This three-year plan provides the basis for the Group’s future growth and contribution to decarbonization. Subsequently, we formulated the medium-term management plan “Mission TREEING 2030 Phase 2 (2025 to 2027) as the second phase of the long-term vision with a focus on reforms and materialization to achieve dramatic growth.

In Phase 2 as well, we uphold, “Further Integration of Business Operations and ESG” as one of the five basic policies, and have set the Mid-term Sustainability Targets Phase 2 (2025–2027), incorporating our sustainability strategy and material issues.

We have set the Mid-Term Sustainability Targets by revising the specific ESG-related goals set in our medium-term management plan launched in fiscal 2019, with a view to better aligning our business operations with our ESG strategies. Under the long-term vision "Mission TREEING 2030," the value created by the Group was identified from the perspectives of "Value for our planet," "Value for people and society," and "Value for the market economy," and nine material issues for the Group were newly specified. Also, our business divisions have set their own numerical targets for the nine material issues in a more specific manner.

We believe that it will not only meet the expectations of society, such as expectations for the SDGs, but also help us increase our corporate value that cannot be judged only from the economic perspective.

Nine Material Issues and Related SDGs

Theme	Nine Material Issues		Related SDGs
Value for our planet	1	To enhance the value of forests and wood through sustainable forest management
	2	To realize carbon neutrality by leveraging forests and wood resources
	3	To realize a circular bioeconomy by leveraging forests and wood resources
Value for people and society	4	To provide comfortable and secure spaces for society at large
	5	To improve the livelihood of the local communities where we operate
	6	To create a vibrant environment for all workers
Value for the market economy	7	To create new markets with forests and wood
	8	To transform markets through DX and innovation
	9	To establish a robust business structure

Identification of Material Issues

The Sumitomo Forestry Group established four priority CSR material issues in 2008 to work on the realization of a sustainable society. In 2015, in response to changes in economic, environmental, and social situations, the Group re-identified its CSR material issues and specified five key items. Since then, major changes have occurred around the world, including the adoption of the Sustainable Development Goals (SDGs) and the conclusion and entry into force of the Paris Agreement. In Japan, the signing of the United Nations Principles for Responsible Investment (PRI) by the Government Pension Investment Fund (GPIF) accelerated the trend toward ESG investment. In response to these trends, the Sumitomo Forestry Group formulated its long-term vision "Mission TREEING 2030" in February 2022 by newly identifying nine material issues for the Group. In order to specify the areas where we can make unique contributions by using the Sumitomo Forestry Group's strengths, which have grown significantly through M&A and capital and business alliances, we analyzed geopolitical changes, technological innovations such as digitalization, and changes in the preferences of stakeholders including employees and customers. We have thereby set the nine material issues for the Group’s entire business, not just for sustainability.

The Nine Material Issues and the Identification Process

Based on external changes (megatrends), we first selected the items that would impact the Sumitomo Forestry Group and set 35 items in the following five categories: "Environmental Issues (Climate Change)," "Environmental Issues (Resources and Biodiversity)," "Social Issues," "Governance," and "Economic Issues." Next, based on the 35 items, we conducted a questionnaire survey targeting all stakeholders, including customers, business partners, shareholders and investors, external experts, and employees, asking them to select the items they consider important. We received responses from approximately 6,000 people in the questionnaire survey. Based on the results of the survey and individual interviews held with executives, managers and junior staff, we narrowed down the material issues for the Sumitomo Forestry Group. Furthermore, our management team held a series of discussions at the meetings of the Sustainability Committee, and materiality assessments were conducted by incorporating their opinions and in consideration of the risks and opportunities posed to the Group. Finally, we specified the nine material issues from three perspectives: "Value for our planet," "Value for people and society" and "Value for the market economy."

Process for Identifying the Material Issues Followed by the Sustainability Committee

Since fiscal 2025, we have been reassessing sustainability-related risks and opportunities in preparation for the disclosure of information in line with the Sustainability Standards Board of Japan (SSBJ) Standards in our annual securities report.

Management of the Mid-term Sustainability Targets

Based on our contribution to the SDGs and the nine material issues, we have set the numerical targets that are directly linked to our business in the Mid-term Sustainability Targets.

Each Group company and department has set their own numerical sustainability targets for each fiscal year (called “Sustainability Budget”) and is engaging in initiatives to achieve the targets. The Sumitomo Forestry Group steadily conducts a PDCA cycle, with the Sustainability Committee semiannually checking the progress and achievement level of each target and reporting the results to the Board of Directors.