Material Issue 7

Related SDGs

Basic Policy

It is deemed important to utilize forests and wood to enrich the economy while meeting various environmental and social challenges, such as the realization of a decarbonization society and a circular economy, conservation of biodiversity, and respect for human rights. In order to deepen and expand the use of wood and activate the functions of forests, it is also necessary to create new markets that utilize them. Housing markets in emerging countries in Asia and other regions are growing, and due to the aging of society, elderly care services in Japan and other developed countries are expanding. In addition, the markets for wooden buildings, including medium- to large-scale buildings, as well as other environmentally conscious products and carbon 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 taking on the challenge of solving many issues including those related to construction technologies for structures, fire resistance, production and environment, legal regulations, and costs. 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 attributes importance to collaboration with external partners without being bound by our own technology.

Impact on Society and the Environment

Management of Material Issue 7 (FY2025)

In the Mid-term Sustainability Targets Phase 2 (2025 to 2027), Material Issue 7 is roughly divided into the following categories and managed through the annual action policies and measures adopted by the department in charge.

Creation of new markets

In order to expand the use of domestic timber and build a system to supply it in a stable manner, the Sumitomo Forestry Group is pushing ahead with the establishment of timber industrial complexes. We have no records for the use of timber produced in the complexes for fiscal 2025, as the complexes have not yet been operated. In fiscal 2026, one of the complexes will start operation on a full scale to produce timber in the volume of 70,000 m3. We aim to build a stable supply system for domestic timber, thereby contributing to increasing Japan’s timber self-sufficiency rate and revitalizing regional economy.

In order to spread the use of architectural designs for decarbonization, such as the use of wood for buildings, we are encouraging suppliers to obtain Environmental Product Declaration (EPD) certification on the environmental performance of timber and building materials. For fiscal 2025, the number of products for which suppliers obtained the certification was 26 and below the target of 55, but increased year on year. In and after April 2026, a total of 56 products will be EPD-certified. Through collaboration with building materials manufacturers and timber suppliers, we are expanding the market for environmentally friendly products and aim to increase the number of EPD-certified products to 145 in total by fiscal 2027.

Research & Development

We are also designing green spaces by adopting the Nature-based Solutions (NbS) concept. There are certain green spaces in urban areas, which help conserve and restore biodiversity, absorb CO₂, store rainwater, and lower the local temperature, thereby contributing to the control of climate change and natural disasters including flooding. Accordingly, Sumitomo Forestry Landscaping has set a target for the rate of green spaces larger than 500 m2 among the green spaces designed by the company in response to orders for landscaping placed by customers. In fiscal 2025, the rate was 36.5% and exceeded the target of 35.0%, implying that the company is favorably creating green spaces in consideration of biodiversity. We aim to expand the rate to 40.0% in fiscal 2027 to create a living environment that harmonizes with nature by designing green spaces that bring value to the environment and society.

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