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 the global crises that have a great impact on economy, such as the intensification of natural disasters as well as financial and geopolitical risks. Continuing business even in the face of unexpected events contributes to the 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 is also aiming to strengthen the supervisory function of the Board of Directors during normal times, while enhancing 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 robust business structure.
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 (FY2025)
In the Mid-term Sustainability Targets Phase 2 (2025 to 2027), Material Issue 9 is roughly divided into the following categories and managed through the annual action policies and measures adopted by the department in charge.
Governance / Compliance / Non-financial information disclosure
As part of our effort to enhance governance, we conducted BCM training four times. Specifically, we conducted a drill to support owners of Sumitomo Forestry homes in the event of an earthquake directly beneath the Tokyo metropolitan area twice, an emergency headquarters drill in Osaka once, and a disaster headquarters drill against a Nankai megathrust earthquake once. Through the drills we identified the problems and challenges to address and worked to make improvements on our BCP. For BCM, each of our business divisions is conducting training to make payments and conduct other operations on behalf of other divisions in the event that they are affected by disasters. At the head office, we are building a system to timely place replenishment orders for emergency supplies and take out the expired supplies with agility from each of the floors. Also, as a new challenge to meet, we are now required to conduct training to ensure the business continuity of each business department. In fiscal 2026 we plan to conduct a drill nine times in total, and details of each drill will be determined according to the identified challenges.
As for the enhancement of our compliance system, we regard legal compliance as the basis of corporate activities. Accordingly, we have built a strict compliance system. In fiscal 2025, we carried out voluntary inspections as planned to ensure compliance with the laws and regulations that are applied to our businesses and have made improvements. Also, for environmental laws and regulations, we checked the status of compliance at our domestic affiliates once within the fiscal year as planned.
In fiscal 2025, toward the disclosure of information according to the Sustainability Standards Board of Japan (SSBJ) Standards in our annual securities report, we reviewed our sustainability-related risks and opportunities, analyzed the gap between our present disclosures and those required to meet the SSBJ Standards, and grasped the current status and challenges to meet concerning our non-financial information collection system. We will continue to make preparations for the voluntary disclosure of information about our measures to deal with climate change and meet nature-related challenges as well as our human capital management in fiscal 2027, aiming for highly transparent information disclosure.
Results
Ratings in the table below
Achieved: ◯ Not achieved but improved year on year: △ Not achieved and declined year on year: ✕
| Indicator for Evaluation (Numerical Target) | Department in Charge | FY2025 Target |
FY2025 Result |
FY2025 Rating |
FY2027 Target |
|---|---|---|---|---|---|
| Number of BCM training sessions conducted (times) | General Administration Department | 2 | 4 | ○ | 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 | Identification of scope of applicability | ○ | Preparation for disclosure |
*Sustainability Standards Board of Japan (SSBJ)
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