Material Issue 3

Related SDGs

Basic Policy

Against the background of concerns about resource depletion, biodiversity loss, and environmental pollution caused by harmful substances and marine plastics, it is necessary to build a circular economy that thoroughly recycles and makes effective use of resources. Circular economy is an economic model that aims to design products and services that reduce environmental burdens such as disposal and pollution, and to continue to circulate the raw materials and products at a high level.

The Sumitomo Forestry Group engages in a wide range of businesses in Japan and overseas, including the manufacture and sale of housing construction materials, forest management, renovations, greening business, real estate development, and biomass power generation, with a focus on the detached housing business. Since various resources and materials, mainly wood, are used in each respective business activity, we need to make effective use of our resources and materials, reduce waste, and recycle. We will realize a circular bioeconomy centered on wood by running a wood cycle that cascades utilization of timber, which is a renewable and sustainable natural resource, in the forest, wood, architecture, and the field of energy such as biomass power generation and increasing the value of wood resources. For resources other than wood, we will strive to control, reuse, and recycle waste. We will also continue to investigate sustainability of our supply chain for the sustainable use of resources.

Impact on Society and the Environment

Management of Material Issue 3 (FY2023)

In Mid-Term Sustainability Targets 2024, Material Issue 3 is divided into 18 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.

Reduction and Recycling of Industrial Waste

Total amount of industrial waste discharged from all branches (kg / building) was 2,467kg, lower than the 2,585kg emitted in fiscal 2022, and also lower than the targeted amount (2,573kg). While the rate of decline in emissions has been gradual due to the increased use of pre-cut panels and roof slate, the progress of new measures such as pre-cutting siding and switching to the use of reused curing materials contributed to the reduction of emissions. In fiscal 2024, we will work to further reduce waste at sites by pre-cutting feather pattern materials, ordering appropriate quantities of unprocessed materials, and considering the reuse of tarps.

Sumitomo Forestry's recycling rate at new housing construction sites was 95.1%, falling just short of the plan of 97.0%, but up 0.8 points from fiscal 2022. The main reason was a relative decline in the recycling rate due to the shift to pre-cut materials with a high recycling rate, and it improved from fiscal 2022 thanks to a decrease in composite waste due to thorough separation at construction sites.

In the Mid-Term Management Plan (2022-2024), we aim to achieve 98.0% in fiscal 2024, the final year of the plan, by reducing the co-mingled waste ratio from thorough separation of waste at each site.

*1Includes new housing construction sites of the Housing and Construction Division, Sumitomo Forestry Landscaping, as well as Sumitomo Forestry Home Engineering.

*2Includes specific construction materials (concrete, asphalt-concrete, and wood waste) under the Construction Material Recycling Law.

*3Includes Sumitomo Forestry Home Tech renovation sites but excludes hard-to-recycle debris and asbestos.

*4Excludes Construction Business Sub-Division.

Reduction of Water Consumption

The Sumitomo Forestry Group's total water consumption in fiscal 2023 was 2,916,000 m³, exceeding the target of 2,757,000 m³ by 159,000 m³, but we were able to reduce total water consumption by 21,000 m³ from 2,937,000 m³ in 2022. In fiscal 2022, a large-scale water leak occurred over several days due to a broken groundwater pipe at an overseas manufacturing plant, and there was an increase in water consumption at an affiliated company that operates a golf course because of the increased watering of grass due to a decrease in rainfall. The main reason for the reduced water consumption in fiscal 2023 was the elimination of these factors. In addition, the reduction in water consumption was also due to smaller production and sales volumes at overseas manufacturing plants resulting from shrinking markets. At the elderly-care facilities that we operate, we are promoting water-saving initiatives such as introducing water-saving faucets and automatic sprinklers, and making fine-tuned adjustments to water pressure.

Management of the Supply Chain

With regard to the "Sustainability procurement survey implementation rate in the supply chain" in the domestic detached houses division, which began in fiscal 2019, we have conducted surveys for more than 90% of our suppliers in terms of material purchases, and we maintained this status in fiscal 2023. Survey results are improving, and the main reasons were to promote understanding of the ESG survey, and the suppliers made efforts based on the feedback from the previous result. Similarly, the domestic distribution department of the Timber and Building Materials Business Division has been conducting the same survey of suppliers since fiscal 2022, and the response rate for fiscal 2023 was 83.5% compared to the target of 85%. Although we fell short of the target, the implementation rate improved by 2.9 points from 80.6% in fiscal 2022.

The number of companies that proposed Environmental Product Declaration (EPD) certification to suppliers was 109 (69.3% of total purchases) compared to the planned 100 (76.0% of total purchases) as a result of aggressive proposals to suppliers.
Currently, we are marketing and providing the Japanese version of "One Click LCA," software that visualizes greenhouse gas emissions at the time of construction. We will continue to actively utilize this software and provide training and application support for EPD acquisition in order to market and promote the EPD product.

Utilization of Unused Resources

The amount of unused forest resources we used for biomass fuels and other purposes was 22,595 m³ in fiscal 2023, a large increase compared to 18,022 m³ in fiscal 2022. In response to growing demand for fuel material in recent years, we have asked for cooperation in proactively collecting small-diameter timber in our daily meetings with contractors. In fiscal 2023, a large proportion of fine timber was included in the amount of wood production, which was also a factor in the increase in the amount of unused wood resources.