Mid-Term Sustainability Targets as part of the Mid-Term Management Plan

Material Issue 8
 To transform markets through DX and innovation

Material Issue 8

Material Issue 8
 To transform markets through DX and innovation

Enhancing economic efficiency and added value through business transformation brought about by DX and innovation.

Related SDGs

9.INDUSTRY, INNOVATION AND INFRASTRUCTURE

Basic Policy

In the fields of forestry and wooden construction business, where tradition and experience have been emphasized, it is necessary to raise economic efficiency and increase added value through market reforms such as DX and innovation, in view of the situation such as decrease and aging of main players, technological advancement and globalization, and future demand expansion. Global acceleration of digitalization in procurement, design and construction of buildings, utilization of technology and AI technology, and digitalization of end consumers, delayed responses can result in cost disadvantages compared to competitors and can lead to loss of customer contact and opportunities to win new customers.

The Sumitomo Forestry Group aims to ensure quality and quantity of wood resources and provide them with high added value by improving efficiency of sales activities and supply chains through DX and innovation. In the field of elderly care business, which faces similar challenges, we will introduce innovations to increase added value and improve operational efficiency, such as user safety and security.

Impact on Society and the Environment

Material Issue 8 Impact (Opportunities) Impact (Risks)
To transform markets through DX and innovation

Enhancing economic efficiency and added value through business transformation brought about by DX and innovation.
  1. Improve workability by improving work efficiency
  2. Improve productivity through effective use of data
  1. Destruction of existing business value through technological innovation
  2. Loss of cost competitiveness with competitors and opportunities to win new customers due to delay in response

Management of Material Issue 8 (FY2024)

In Mid-Term Sustainability Targets 2024, Material Issue 8 is divided into 3 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.

DX related

In the timber and building materials distribution sector, delivery slips are sent to customers, and we are working to reduce the use of paper delivery slips and improve the efficiency of paperwork in line with the shift to electric transmission.

In fiscal 2024, 967 companies (introduction rate of 69%) introduced the system, compared to the planned 820 companies (introduction rate of 59%). In the wake of the coronavirus disease (COVID-19) outbreak, the need to work in a telework system environment increased employee awareness of data transmission, contributing to higher adoption rates. Reduction of simple input work for documents like delivery slips through the use of digital technologies such as RPA and OCR also progressed steadily. We are currently promoting "RPA Citizen Developer," which allows non-specialist employees to develop RPA systems that were previously developed by professionals with specialized knowledge. IT division is playing a central role in training employees for RPA development.

In fiscal 2025, we will continue to promote digitalization more actively than before. For RPA, we aim to further improve operational efficiency by increasing the number of participants in regular training programs from 20 to 30, and by appointing dedicated supporters within business divisions to independently develop and train personnel.

The number of facilities with sensor equipment installed in the elderly care business increased by two to a total of 21 with the opening of new facilities in fiscal 2024. (All facilities are now equipped.) From fiscal 2025 onward, we will continue to maintain sensor coverage across all facilities by ensuring the installation of monitoring sensors at the time of each new facility opening.

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 FY2024
target
FY2024
result
FY2024
value
FY2025
target
Data linkage with customer (company)
Adoption rate (%)
Timber and Building Materials Division (IT Solutions Department) 820
59.0
967
69.0
1,260
90
RPA and OCR adoption rate (%) 100 Change of evaluation criteria
Number of facilities that have introduced sensor equipment in elderly care business Lifestyle Service Division 19 21

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

Management of Material Issue 8

In "Mid-Term Sustainability Targets Phase 2 (2025–2027)," Material Issue 8 is primarily categorized as follows, and management is carried out by incorporating it into the annual activity policies and measures of the responsible departments.

DX related

Indicators for Evaluation Managing department FY2024
result
FY2025
target
FY2026
target
FY2027
target
Number of RPA Citizen Developers (persons) IT Solutions Department 260 380 500
Digital Transformation of Business Management Development of the Forestry Management System Environment and Resources Division Functionality Expansion Functionality Expansion Standardization
Implementation of the Inventory and Forestry Management System Start of Development Implementation Standardization
Number of Facilities That Have Introduced Sensor Equipment in Elderly Care Business Sumirin Fill Care Lifestyle Service Division 17 17 17
Sumirin Care Life 4 4 4
Number of Contract IDs through the "JUCORE Estimation" Service* Timber and Building Materials Division 1,070 2,714 3,674
Improved Efficiency and Accuracy in Sustainability Information Collection Sustainability Department Grasp of Non-Financial Information and Consideration of System Integration Pilot Test Execution and System Integration Start of System Operation

* Initiatives for Building a Platform to Restructure the Wood and Building Materials Industry / Quotation Support System

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