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 (FY2022)

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 13.8% compared to fiscal 2017, falling short of the targeted 16% reduction. The increase in working hours in the Housing Division, which accounts for about 70% of the total, is the main reason for the increase. In addition to revising work flow and promoting the use of outside business partners, we will strengthen efforts to reduce working hours by implementing measures including a "no-overtime day."

Regarding the percentage of male employees taking childcare leave at Sumitomo Forestry on a non-consolidated basis, the take-up rate was 49%, falling short of the targeted rate of 80%. In April 2022, the Company began to allow employees to apply for childcare leave from the stage when their child is expected to be born. In October of the same year, the Company revised its rules on childcare leave, including the establishment of childcare leave at birth, and has been working to encourage employees to take childcare leave by introducing good practices and notifying employees of other details on the company intranet, thoroughly implementing the new flow, and strengthening individual follow-up. Both the number of employees who have taken the leave and the average number of days they have taken the leave have reached record highs, and we will continue to work toward achieving a work-life balance by raising employee awareness through these measures.

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
Employee satisfaction level (%)	Non-Consolidated	Personnel Department	80.0	77	×	81.0	82.0
	Consolidated in Japan		67.0	58.9	×	68.9	71.0
Paid Leave Usage Ratio (%)	Non-Consolidated		70.0	68.4	△	70.0	70.0
	Consolidated in Japan		61.6	66.6	○	62.6	63.8
Overtime hours reduction rate (%) compared to fiscal 2017	Non-Consolidated (FY2017: 45.5H)		▲16.0	▲13.8	×	▲19.0	▲23.0
	Consolidated in Japan (FY2017: 31.1H)		▲10.0	▲9.5	△	▲13.0	▲15.0
Retention rate of new graduates (3rd year after joining the company)*1(%)	Non-Consolidated		83.0	82.9	×	84.0	85.0
	Consolidated in Japan		75.8	74.8	×	78.8	84.5
Culture that does not allow harassment*2(%)	Non-Consolidated		76.0	76.0	○	78.0	80.0
	Consolidated in Japan		76.2	70.0	×	77.7	75.0
Ensuring psychological safety*2(%)	Non-Consolidated		71.0	70.0	×	73.0	75.0
	Consolidated in Japan		64.0	60.9	△	65.5	67.1
Male childcare leave acquisition rate (%)	Non-Consolidated		80.0	49.0	×	90.0	100
	Consolidated in Japan		33.0	25.4	×	39.0	43.0

*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

We manage targets based on the following five indicators to encourage women to play active roles in the workplace.

The ratio of executives and the ratio of new graduates hired by Sumitomo Forestry on a non-consolidated basis were in line with the plan, while the ratio of employees was 0.1 point short, almost in line with the plan.

In order to achieve the target, training was provided for all levels, including management career candidates in administrative planning positions, new managers and female leadership candidates. In addition, educational activities are conducted to focus on careers over the long term, such as seminars for pairs of childcares and supervisors to help them overcome life events such as childcare and develop their careers. In the future, measures will be considered and implemented in the context of human capital management initiatives.

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
Employment continuation rate after age 60 (retirement extension, reemployment, etc.) (%)	Non-Consolidated	Personnel Department	95.0	94.3	△	95.0	95.0
	Consolidated in Japan		87.5	84.5	×	99.1	98.2
Ratio of female employees to all employees (%)	Non-Consolidated		23.2	23.1	△	23.9	24.5
	Consolidated in Japan		34.3	33.4	△	34.5	34.7
Female officer ratio (%)	Non-Consolidated		13.8	13.8	○	16.7	19.4
Ratio of female senior managers*1 (%)	Non-Consolidated		3.0	2.4	×	3.3	3.6
	Consolidated in Japan		6.5	6.7	○	7.3	7.9
Ratio of female general managers*1 (%)	Non-Consolidated		9.0	8.5	△	10	11
	Consolidated		12.4	11.2	×	13.5	14.3
Ratio of females to new hires*2 (%)	Non-Consolidated		32.6	33.1	○	35.0	35.0
	Consolidated in Japan		34.6	34.6	○	35.5	35.6
Ratio of disabled employees (%)	Non-Consolidated		2.20	2.19	△	2.25	2.30
	Group certification		2.40	2.40	○	2.45	2.50
	Consolidated in Japan		2.30	2.23	×	2.40	2.40

*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

Training costs per employee were 105 thousand yen, which did not reach the plan, but improved from fiscal 2021. While implementing the Coronavirus disease (COVID-19) measures, we conducted parallel group and online training programs, as well as expanded the self-development menu to allow a wide range of employees to participate in the program, and also implemented projects with a high number of participants.

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.

Sumitomo Forestry's non-consolidated acquisition rate for fiscal 2022 was 43.6%, falling short of the plan, but up more than 9 points from fiscal 2021. We will continue to promote the acquisition of these certifications by posting details on the company intranet, utilizing our certification acquisition support rules, and distributing textbooks to departments with low participation rates.

Results

Ratings in the table below
Achieved: ◯　Not achieved but improved from previous year: △　Not achieved and declined compared to previous year: ✕

* Numerical values as of January 1, 2023

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 2022, these accidents occurred in each business field. Especially at new construction sites in Japan, heat stroke and injuries involving crashes and falls increased, resulting in 19 cases of serious work-related injuries lasting four days or longer. In addition, 14 injuries occurred at overseas manufacturing plants, including that occurred by the fall from a forklift.

In fiscal 2022, the Quality Control and Worker Safety Management Department organized the ISO45001 internal auditor training courses, and 50 employees (36 in the internal auditor qualification course and 14 in the standard explanation course) attended the courses. In addition, a new system for evaluating and awarding safety and health activities was established to raise safety awareness. 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.

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
(1) Number of serious occupational injuries (Four or more days of lost worktime) (numbers) (2) Number of occupational injuries (One or more days and less than 4 days of lost worktime) (numbers) (3) Total number of occupational injuries (One or more days of lost worktime: (1)+(2))(numbers)	Domestic new construction site (Contract)	Housing Division	(1)	0	19	△	0	0
			(2)	18	26	×	16	14
			Total	0	45	×	16	14
	Remodeling site (Contract)		(1)	0	4	×	0	0
			(2)	0	6	×	0	0
			Total	0	10	×	0	0
	Overseas housing site (Contract)	Global Housing, Construction and Real Estate Division	(1)	0	9	×	0	0
			(2)	0	4	×	0	0
			Total	0	13	×	0	0
	Domestic group manufacturing companies (employees)	Timber and Building Materials Division	(1)	0	1	×	0	0
			(2)	0	0	○	0	0
			Total	0	1	×	0	0
	Overseas group manufacturing companies (employees / contractors)*		(1)	0	14	×	0	0
			(2)	0	10	×	0	0
			Total	0	24	×	0	0
	Domestic forest site (Contract)	Environment and Resources Division	(1)	0	3	×	0	0
			(2)	0	1	×	0	0
			Total	0	4	×	0	0
	Overseas afforestation site (Contract)		(1)	0	11	×	0	0
			(2)	0	22	×	0	0
			Total	0	33	×	0	0
	Elderly care site	Lifestyle Service Division	(1)	0	6	×	0	0
			(2)	0	2	×	0	0
			Total	0	8	×	0	0

*Total 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)