Material Issue 6

Related SDGs

Basic Policy

In order to achieve sustainable business growth, it is important to create an environment where people involved can thrive. Foundation of a fair work environment is that everyone in the supply chain accepts diversity, including race, religion, ethnicity, nationality, and gender, and respects human rights without discrimination. We must also respect work-life balance, which emphasizes lifestyle of each individual. In addition, there is a possibility that serious occupational accidents may occur in the forest business or Housing and Construction Business, and sufficient measures are necessary.

The Sumitomo Forestry Group sets "We promote a free and open-minded corporate culture that respects diversity" as one of Our Values, and also make Declaration on Health Management in an effort to maintain and improve physical and mental health of all employees and their families so that they can work healthily and actively. In the future, with the utmost emphasis on continuous improvement of employee satisfaction, we will work on multi-faceted and concrete targets such as realization of diversity, prevention of harassment, elimination of occupational injuries, and improvement of retention rate and number of obtained qualifications.

Impact on Society and the Environment

Management of Material Issue 6 (FY2024)

In Mid-Term Sustainability Targets 2024, Material Issue 6 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.

Work-Life Balance (Workstyle Reform)

Sumitomo Forestry's overtime working hours reduction rate was 13.1% compared to fiscal 2017, falling short of the targeted 23% reduction for fiscal 2024. The main reason was an increase in the workload of each Group, resulting from a rise in the number of orders received and housing starts in the detached housing division. This was also affected by the fact that the attendance management system now reflects the operating hours of company issued computers, making it possible to keep more accurate records of working hours. In addition to continuing to optimize work flows, appropriately assign human resources, and increase the number of mid-career hires, we will promote DX by introducing RPA and AI, and conduct interviews with relevant employees to reduce long working hours.

Regarding the percentage of male employees taking childcare leave at Sumitomo Forestry on a non-consolidated basis, the take-up rate was 78.1%, falling short of the targeted rate of 100% for fiscal 2024. However, this represents an improvement from the 70% recorded in fiscal 2023. In addition to requesting a birth plan, sharing and confirming the intention to take childcare leave, early guidance and encouragement to relevant employees, the establishment of e-learning for men taking childcare leave, the introduction of case studies on the company intranet, and individual follow-up when applying for the lump-sum childcare support payment have contributed to a 29-point increase in the rate of taking childcare leave over three years. In addition, the average number of days taken for childcare leave has also steadily increased, indicating growing awareness among employees and further penetration of the system within the company. We will continue to implement measures to raise awareness not only among individuals but also within the workplace, aiming to achieve a better work-life balance.

*1Calculated as a percentage of the number of new graduate employees who joined the company between April and the following March and who will be with the company on April 1, three years later

*2Percentage of employees who answered either "absolutely" or "yes, if I have to choose" in employee satisfaction surveys

Diversity

The Sumitomo Forestry Group issued the "Sumitomo Forestry Group DEI Declaration" in April 2024, clarifying the significance of Diversity, Equity, and Inclusion (DEI) with the aim of fostering an environment where all individuals are respected and accepted within organizations and society under fair conditions. Within the Diversity aspect of the DEI Declaration, we implement goal management using five key indicators to promote the active participation of women. Regarding each indicator for Sumitomo Forestry on a non-consolidated basis, the target was achieved for the ratio of female senior managers, but the other four indicators were not met. In addition, four indicators other than the ratio of female new hires improved compared to fiscal 2023.

To achieve the targets, we conducted awareness-raising activities with a long-term career perspective, including training programs for manager candidates, newly appointed managers, and female leader candidates, as well as training on working styles after childcare leave. As part of DEI, we will continue to further strengthen our awareness-raising activities going forward.

*1Among managers, supervisors are defined as senior managers and the rest as general managers

*2Calculated by adding the number of new graduate employees hired between May and the following March of the previous year to the number of new graduates hired in April

Human Resources Development

Regarding Sumitomo Forestry on a non-consolidated basis, both "training expenses per employee" at 152,000 yen (an increase of 35,000 yen from the previous year) and "training hours per employee" at 20.9 hours (an increase of 1.7 hours from the previous year) achieved both the planned targets and improvements over the previous year.

The increase in the number of participants is mainly attributed to the expansion of self-development training and the implementation of hierarchical training programs following the revision of the personnel system. It is presumed that with the revision of the personnel system and increased opportunities to introduce the external training attendance system, awareness of the system itself and the motivation for autonomous learning have gradually risen. In addition, aiming to realize a free and open workplace culture, the Housing Division has continued to implement the Three-Star Project, and conducted psychological safety training for all managers.

Going forward, we will continue to ensure the thorough implementation of hierarchical training programs and work to expand training opportunities for employees by strengthening collaboration with each division.

In response to growing environmental awareness, the Sumitomo Forestry Group encourages its employees to take the Certification Test for Environmental Specialists Test (eco kentei) in order to develop the capability to accurately explain the relationship between our business and the environment. The take-up rate for fiscal 2024 at Sumitomo Forestry on a non-consolidated basis was 82.0%, achieving the planned target. This marks an improvement of more than 10 percentage points since fiscal 2022. To achieve a certification rate of 70% or higher at all locations, we will further promote acquisition through posting announcements on the company intranet, raising awareness during ISO internal environmental audits, and supporting distribution of study materials.

Occupational Health and Safety

As for the number of occupational injuries, we have set a target of zero serious occupational injuries (occupational injuries resulting in four or more days of absence from work), but in fiscal 2024, these accidents occurred in each business field. Especially at detached house construction sites in Japan, heat stroke and injuries involving crashes and falls increased, resulting in 14 cases of serious work-related injuries lasting four days or longer. However, this was three less than in fiscal 2023. As safety training for new personnel entering the site, we have created an orientation video for new entrants. To ensure that the video is definitely watched, we posted a QR code linking to the video on the cover of the safety logbook kept on site, allowing site personnel to easily access and understand the content. Furthermore, we promoted the participation in Foreman and Safety Officer Skills Improvement Training, which includes group exercises, targeting foremen who serve as key figures in on-site safety and health management.

Preventing falls from height during construction site work and preventing entanglement accidents caused by rotating machinery in manufacturing sites are priority issues. To identify hazards, we are currently conducting a survey—including affiliated companies—of all high-altitude work and rotating machinery, as well as whether work manuals exist. If any work without manuals is identified, we will promptly develop the necessary manuals and provide education and guidance to employees.

In fiscal 2024, the Quality Control and Worker Safety Management Department organized the ISO45001 internal auditor training courses, and 56 employees (52 in the internal auditor qualification course and 4 in the standard explanation course) attended the courses. In addition, we worked to raise safety awareness by evaluating and awarding safety and health activities, among other measures. In the event of a serious occupational injury, we will pursue the cause of the injury, prevent its recurrence, and conduct internal auditing to keep these initiatives in check. We will continue to strengthen our efforts to achieve zero occupational injury throughout the Sumitomo Forestry Group by implementing Group-wide management of occupational injury cases, strengthening safety education in each division and affiliate, and providing support horizontally.

*1Occupational accident equivalent to a serious occupational injury in Japan’s occupational injury classification (four or more days of absence)

*2Total of 8 consolidated companies of Nelson Pine Industries (NPIL), PT. Kutai Timber Indonesia (KTI), PT. AST Indonesia (ASTI), PT. Sinar Rimba Pasifik (SRP), Canyon Creek Cabinet (CCC), and Vina Eco Board (VECO), Pan Asia Packing (PAP), and PT. Rimba Partikel Indonesia (RPI)