Material Issue 5

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 a 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 the inactivation of an entire city due to shrinking household size and increase in vacant land and vacant houses.

The Sumitomo Forestry Group is actively contributing to the 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 the provision of high-quality elderly care facilities and nursing care facilities where the warmth of wood can be felt by the elderly, 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

Management of Material Issue 5 (FY2025)

In the Mid-Term Sustainability Targets Phase 2 (2025 to 2027), Material Issue 5 is roughly divided into the following two categories and managed through the annual action policies and measures adopted by the department in charge.

Communication with Local Communities

In our housing business in Japan, we are working to build communication and cooperation systems between companies and local people for managed green spaces. In fiscal 2025, we achieved the target of receiving a total of 25 orders for our environmental consultation service. We have established a system to appropriately understand the needs of corporate customers, make proposals to meet their needs, and conclude service agreements with them, which is proved to be effective.

Moreover, we are providing external environmental learning opportunities and conducting social contribution activities. In fiscal 2025, we conducted a volunteer activity for the Mt. Fuji Manabi no Mori natural forest restoration project, an environmental learning support project for local elementary and junior high school students, and a tree planting activity for the restoration of nature in Okumatsushima. In fiscal year 2025, the number of participants in external environmental education programs was 4,381, and the number of participants in social contribution activities was 1,218.

For environmental education in Indonesia, we provided it at 16 schools against the target of 22 in fiscal 2025. We were unable to attain the target due to local social situations and changes in the status of local school management. Going forward, we will identify local needs and situation in more detail and enhance our measures to achieve the target for fiscal 2027.

Results

Ratings in the table below
Achieved: ◯　Not achieved but improved year on year: △　Not achieved and declined year on year: ✕

Human Rights

In order to respect the human rights of stakeholders involving in our business activities and appropriately identify and respond to human rights-related concerns and problems, we are working to build a grievance mechanism.

In fiscal 2025, we collected necessary information to design an effective grievance mechanism. Specifically, we obtained data about the results of our existing mechanism (including contact points for harassment and compliance) and the implementation status. Toward the introduction of a new mechanism, we also interviewed personnel in charge of human rights-related support at each of the business divisions about their concerns and points of focus.

After taking these measures, we applied for membership in the Japan Center for Engagement and Remedy on Business and Human Rights (JaCER) in fiscal 2026 and was admitted to it. On April 1, 2026 we officially started to implement a grievance mechanism through JaCER. At meetings of the Sustainability Committee held during each term, the number of internal reports made through the system and the details of responses made to the incidents reported will be regularly shared to ensure the transparent implementation of the system.

In fiscal 2027, toward the full-scale implementation of the new grievance mechanism, we will raise the awareness of the mechanism both internally and externally and improve it on a continual basis. Through these measures we will fulfill our responsibility for respect for human rights in our business activities and win even more trust from stakeholders.

Results

Ratings in the table below
Achieved: ◯　Not achieved but improved year on year: △　Not achieved and declined year on year: ✕