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

Material Issue 5 
To improve the livelihood of the local communities where we operate

Material Issue 5

Material Issue 5 
To improve the livelihood of the local communities where we operate

Creating jobs through our businesses and contributing to the development of local communities.

Related SDGs

Basic Policy

Both in Japan and overseas, regions where forest businesses are operated are far away from major urban areas, and economic and cultural disparities are often seen even within each country. Especially in developing countries, infrastructure such as roads, hospitals, schools and markets may not even be in place. In Japan, even in urban areas, super-aging is progressing, and there are concerns that quality of life of the elderly will decline, along with inactivation of the entire city due to shrinking household size and increase in vacant lands and vacant houses.

The Sumitomo Forestry Group is actively contributing to development of social infrastructure required in each region, in addition to increasing employment by hiring local human resources, particularly in the forest business in developing countries. In Japan, in urban areas, we will expand provision of high-quality elderly care facilities and nursing care facilities where the warmth of wood can be felt, who are also socially vulnerable. In rural areas, we will develop businesses that contribute to regional revitalization while emphasizing communication with local stakeholders.

Impact on Society and the Environment

Material Issue 5 Impact (Opportunities) Impact (Risks)
To improve the livelihood of the local communities where we operate

Creating jobs through our businesses and contributing to the development of local communities.
  1. Correction of economic disparities through regional revitalization
  2. Development of a common awareness of the issues of local communities through communication with local residents
  3. Enhancement of welfare by providing elderly care facilities
  1. Widening disparities within communities due to provision of disproportionate services and employment
  2. Responding to community rules, customs, and cultures

Management of Material Issue 5 (FY2023)

In Mid-Term Sustainability Targets 2024, Material Issue 5 is divided into 6 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.

Response to Declining Birthrate and Aging Population

The total number of private-pay elderly care facilities was 1,842 for Sumirin Fill Care and Sumirin Care Life, both of which are nursing care business companies. The number of rooms increased by 78 compared to fiscal 2022 due to the opening of a new facility in Denenchofu by Sumirin Fill Care. We aim to maintain and improve living environment and health of facility users by providing spaces filled with warmth of trees, introducing advanced systems using ICT, and providing expert guidance based on these systems.

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 FY2023
target
FY2023
result
FY2022
value
FY2024
target
Number of rooms at private-pay elderly care facilities (rooms) Lifestyle Service Division 1,842 1,842 1,842

Communication with Local Communities

With regard to communication with local communities, we disclose the number of local personnel employed at the Open Bay Timber (OBT), based in Papua New Guinea as an indicator (the target being increase over the previous year). In fiscal 2022, we increased number of employees to increase production volume and hired more local residents than planned, such as carpenters for construction and improvement of local life infrastructure. However, in fiscal 2023, the number of employees decreased by five due to delay in start of production. In fiscal 2024, we will actively promote employment of human resources by utilizing recruiting services.

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 FY2023
target
FY2023
result
FY2023
value
FY2024
target
Communication with stakeholders related to maintaining SGEC certification (times) Environment and Resources Division 1 or more 2 1 or more
Explanation and communication to local residents when planning a new power plant (times) 1 or more 2 1 or more
Year-on-year increase in number of people at OBT (persons)
[Recruitment of local human resources to increase production]
+17 ▲5 × +28
Pruning and weeding area at TPF (ha)
[Reduce fire risk and improve landscape (pruning and weeding area)]
30 30 30
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Human Rights

In response to further increasing external requirements for human rights, we are strengthening our human rights efforts. In fiscal 2023, we studied operational structure of the Grievance Mechanism* to mask sure than it can be comprehensively deployed throughout the Sumitomo Forestry Group.

*Grievance and/or complaint mechanisms related human rights issues for stakeholders.

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 FY2023
target
FY2023
target
FY2023
value
FY2024
target
Efforts related to grievance mechanism Sustainability Department Range enlargement Operational structure under consideration - Continuous operation
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