Material Issue 7

Related SDGs

Basic Policy

Utilization of forests and wood is emphasized in order to enrich the economy while solving various environmental and social issues such as realization of a decarbonization society and a circular economy, conservation of biodiversity, and respect for human rights. In order to deepen and expand utilization of wood and activate functions of forests, creation of new markets that utilize them is also the key. Housing markets in emerging countries such as Asia are growing and, due to the aging of society, elderly care services in developed countries such as Japan are expanding. In addition, the markets for wooden buildings, including medium- to large-scale buildings, as well as other environmentally conscious products and offsetting products are expected to expand due to the growing needs for environmentally conscious products. As market environment changes at a bewildering rate, companies are required to flexibly cope with such changes in the market.

The Sumitomo Forestry Group will expand its medium- and large-scale wooden construction business globally while challenging many issues such as technology, legal regulations, and cost relating to construction such as structure, fire resistance, production, and environment. In addition, in order to develop various new technologies, new products, and new markets that utilize "wood" and "forests," we will promote research and development that emphasizes collaboration with the outside world without being bound by our own technology.

Impact on Society and the Environment

Management of Material Issue 7 (FY2024)

In Mid-Term Sustainability Targets 2024, Material Issue 7 is divided into 2 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.

Development of New Business

In the medium- to large-scale wooden construction business, we participated in a 15-story wooden office development project in Melbourne, Australia in 2021, followed by the development of a 6-story wooden office in the UK, a 3-story wooden office in Atlanta, USA, and a 7-story wooden office in the suburbs of Dallas, USA in 2022. In 2023, in the USA, we began to develop an eight- story large-scale commercial real estate in suburbs of Washington, D.C., a five-story pure wooden structure commercial real estate in suburbs of Denver, Colorado, an eight-story commercial real estate in suburbs of Seattle, and a five-story commercial real estate in suburbs of Dallas, Texas. In 2024, we commenced development of pure wooden rental apartment buildings near Boston, a six-story mixed wood and reinforced concrete (RC) commercial real estate development in North Carolina, and a seven-story mixed wood and RC commercial real estate development in Atlanta, Georgia. We plan to continue to actively expand and develop this business.

Research & Development

Regarding the number of contracts for joint research partners, the objective is to promote R&D based on knowledge that is not available in-house by establishing cooperative frameworks with public institutions and private research organizations.

The number of contracts in Tsukuba Research Institute in fiscal 2024 was 30 (53.8% of all themes), which was less than the planned number, but percentage of contracts relative to all themes was almost in line with the plan.

Mid-Term Sustainability Targets Phase 2 (2025–2027)

Management of Material Issue 7

In "Mid-Term Sustainability Targets Phase 2 (2025–2027)," Material Issue 7 is primarily categorized as follows, and management is carried out by incorporating it into the annual activity policies and measures of the management department.

*Abbreviation for Nature-based Solutions (NbS). Nature-Based Solutions to Social Issues