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 realizes 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 (FY2022)

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 2,585 kg, significantly lower than the 2,837 kg emitted in fiscal 2021, and also lower than the targeted amount (2,709 kg). The steady progress in the adoption of pre-cut materials such as “Kizure Panels” and slates, along with the curbing of the generation of offcuts and other wastes during on-site work, contributed significantly to the reduction of emissions. Currently, pre-cutting of siding is gradually progressing, and we will continue to reduce waste on site.

On the other hand, the recycling rate at new housing construction sites was 94.3%, falling short of the targeted 96%. The main reason for this is the relative decline in the recycling rate due to the shift to pre-cut materials with high recycling rates.

In the medium-term management plan (2022-2024), we aim to achieve 98.0% in the final year of the plan, FY12/2024, by reducing the co-mingled waste ratio through thorough separation of waste at each site.

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
Final disposal amount (t) consolidated Percentage change from fiscal 2021	Sustainability Department	20,489 ▲2.7	24,294 ＋15.4	×	20,181 ▲4.1	19,905 ▲5.4
Recycling rate at new housing construction sites*1（%）	Housing Division	96.0	94.3	×	97.0	98.0
Recycling rate at housing demolition sites*2（%）		100	99.9	×	100	100
Recycling rate at the work sites of the renovation business unit*3（%）		84.5	83.2	×	85.0	85.5
Recycling rate at the work sites of the power generation business unit (%)	Environment and Resources Division	98.0	99.0	○	98.0	98.0
Recycling rate at overseas manufacturing plants (%)	Timber and Building Materials Division	99.0	98.0	×	99.0	99.0
Recycling rate at domestic manufacturing plants (%)		99.0	99.4	○	99.0	99.0
Other recycling rate (%)	Timber and Building Materials Division Lifestyle Service Division Tsukuba Research Institute	84.0	81.0	×	85.0	86.0
Sustainable timber usage ratio (Overall manufacturing) (%)	Timber and Building Materials Division	100	99	×	100	100
Total amount of industrial waste discharged from all branches (kg / building)*4	Housing Division	2,709	2,585	○	2,573	2,511
Discharge amount of newly built industrial waste(kg/m2)		20.8	20.3	○	20.1	19.8

*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 overall water consumption increased to 2,937 thousand m³ from the planned 2,739 thousand m³ due to a large-scale water leakage caused by a damaged underground water pipe that lasted several days at an overseas manufacturing plant, and an increase due to the lifting of lockdowns following the pandemic of coronavirus disease (COVID-19). We will continue our efforts to reduce the amount of water used and to increase the recycled amount, particularly in the manufacturing, which uses a large amount of water.

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
Water consumption（m3） (consolidated)	All Sumitomo Forestry Group Companies	2,739,067	2,937,395	×	2,757,494	2,777,269

Management of the supply chain

With regard to the " Sustainability procurement survey implementation rate in the supply chain of the domestic housing department " in the domestic detached houses sector, 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 2022. The results of the survey have been improving by providing feedback to the supplier, and as a result, the "tier 1 supplier" evaluation (score) has been improved by 0.2 points compared to fiscal 2021. The domestic distribution department of the Timber and Building Materials Division has also begun a new survey of suppliers for fiscal 2022. The implementation rate was 80.6% compared to the planned 80%.

The number of companies that proposed Environmental Product Declaration (EPD) certification to suppliers was 65 (64.8% of total purchases) compared to the planned 10 (52% 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, etc. 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.

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
Sustainability procurement survey implementation rate in the supply chain of the domestic housing department(%)	Housing Division	97	97	○	97	97
Certification acquisition rate of incoming PKS (%)	Environment and Resources Division	-	In preparation	-	100	100
Average score rate of "tier 1 suppliers” in ESG Survey	Housing Division	Improvement as compared to previous year	0.2pt improvement	○	Improvement as compared to previous year	Improvement as compared to previous year
Number of EPD acquisition proposals to suppliers (company) Ratio (%)	Timber and Building Materials Division	10 52	65 64.8	○	30 66	65 71
Sustainability survey response rate to suppliers (sales ratio) (%)		80	80.6	○	85	90

Utilization of Unused Resources

Regarding the volume of unutilized resources handled, the handled volume increased compared to fiscal 2021, but was slightly lower than planned. The main reason for this was a significant drop below the target due to a change in the operation plan at the Mombetsu Forestry Office. On the other hand, the Niihama and Hyuga forestry offices increased the volume handled to compensate for the decrease at the Mombetsu Forestry Office, resulting in an increase in volume compared to fiscal 2021.