Material Issue 9
To establish a robust business structure
Material Issue 9
Material Issue 9
To establish a robust business structure
Contributing to a stable economy by continuously providing value with a structure that is resilient to contingent circumstances.
Related SDGs

Basic Policy
Building a strong business system is important for a company to carry out sustainable business amidst a global environment of crises that have a great impact on the economy such as intensification of natural disasters, and financial and geopolitical risks. Continuing business even in the face of unexpected events also contributes to stability of the industry and market as a whole.
The Sumitomo Forestry Group will not only build a Business Continuity Management (BCM) system to provide stable value even in the event of unexpected events, but will also aim to strengthen supervisory function of the Board of Directors during normal times, and prompt strengthening of the governance and information security of expanding overseas affiliated companies. With respect to climate change and natural disasters, we will continue to analyze scenarios based on the TCFD recommendations to build a strong business.
Impact on Society and the Environment
Material Issue 9 | Impact (Opportunities) | Impact (Risks) |
---|---|---|
To establish a robust business structure Contributing to a stable economy by continuously providing value with a structure that is resilient to contingent circumstances. |
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Management of Material Issue 9 (FY2024)
In Mid-Term Sustainability Targets 2024, Material Issue 9 is divided into 4 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.
Governance / Compliance / Climate change
As a response to governance, an external evaluation of effectiveness of the Board of Directors was completed in February 2024 in response to the results of a survey of all directors and statutory auditors. We will continue to conduct the same evaluation going forward and work on improvements based on the issues identified.
Additionally, to build and strengthen the BCM framework, we plan to conduct BCM training over three years, including Disaster Response Headquarters drills (in Tokyo and Osaka) and initial response exercises.
Regarding the TCFD scenario analysis, it was conducted in fiscal 2018 for two core business divisions—Domestic Housing and Wood and Building Materials—and in fiscal 2022 for two additional divisions—Overseas Housing, Environment and Resources Business. From October 2022 to March 2023, we conducted another review of the aforementioned two divisions, the Housing Division and the Timber and Building Materials Division , and together with the Global Housing Division and Environment and Resources Division , risks and opportunities related to climate change were analyzed and countermeasures were considered, at the company-wide level. In fiscal 2024, each business division formulated and reviewed strategies based on the results of the TCFD scenario analysis, enabling us to establish concrete targets in "Mid-Term Sustainability Targets Phase 2 (2025–2027)."
To comply with the upcoming mandatory disclosures under the SSBJ standards in the Securities Report related to climate change measures, nature-related issues, and human capital, we will proceed with disclosure preparations in fiscal 2024 through the task force team established for this purpose.
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 |
---|---|---|---|---|---|
New introduction of business process control (internal control) | Global Construction and Real Estate Division | Continuation | Implementation | 〇 | - |
Strengthening information security level of overseas affiliated companies* (%) | IT Solutions Department | 100 | 45 | △ | - |
Implementation of external evaluation of effectiveness of the Board of Directors | General Administration Department | Completion | Continued implementation | - | - |
Conduct scenario analysis and disclosure consistent with guidance from the Task Force on Climate-related Financial Disclosures (TCFD) | Sustainability Department | Examining reflection of measures taken by the group in the strategy for each business division of the next Mid-Term Management Plan | Examining reflection of measures taken by the group in the strategy for each business division of the next Mid-Term Management Plan | - | - |
*Sumitomo Forestry Group's unique security base level achievement rate
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Mid-Term Sustainability Targets Phase 2 (2025–2027)
Management of Material Issue 9
In "Mid-Term Sustainability Targets Phase 2 (2025–2027)," Material Issue 9 is primarily categorized as follows, and management is carried out by incorporating it into the annual activity policies and measures of the management department.
Governance / Compliance / Non-Financial Information Disclosure
Indicators for Evaluation | Managing department | FY2024 result |
FY2025 target |
FY2026 target |
FY2027 target |
---|---|---|---|---|---|
Number of BCM Training Sessions Conducted (times) | General Administration Department | - | 2 | 2 | 2 |
Voluntary Inspections and Awareness-Raising Activities Including Training for the Legal Compliance System | - | Voluntary Compliance Checks Based on Business-Specific Laws | Voluntary Compliance Checks Based on Business-Specific Laws | Voluntary Compliance Checks Based on Business-Specific Laws | |
Number of Environmental Compliance Checks (Domestic Group Companies) (times) | Sustainability Department | - | 1 | 1 | 1 |
Disclosure in Securities Reports Based on SSBJ* Standards | - | Identification of Scope of Applicability | Consideration of Data Collection and Reporting Methods | Preparation for Disclosure |
*Sustainability Standards Board (SSBJ)