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 (FY2023)
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 2023 in response to the results of a survey of all directors and statutory auditors. We continue to conduct same evaluations.
Task Force on Climate-related Financial Disclosures (TCFD) scenario analysis was conducted for two of our core businesses, the Housing Division and the Timber and Building Materials Division, in fiscal 2018, and in fiscal 2022 the analysis was conducted in two divisions, the Global Housing Division and the Environment and Resources Division . 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, we plan to formulate and examine strategies based on results of TCFD scenario analysis for each division and reflect them in the next Mid-Term Sustainability Targets (2025-2027).
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 | FY2023 target |
FY2023 result |
FY2023 value |
FY2024 target |
|---|---|---|---|---|---|
| New introduction of business process control (internal control) | Global Construction and Real Estate Division | Continuation | Implementation | ○ | Continuation |
| Strengthening information security level of overseas affiliated companies* (%) | IT Solutions Department | 50 | 45 | △ | 100 |
| Implementation of external evaluation of effectiveness of the Board of Directors | General Administration Department | Examination | Continuation | ○ | Completion |
| Conduct scenario analysis and disclosure consistent with guidance from the Task Force on Climate-related Financial Disclosures (TCFD) | Sustainability Department | Examining impact of the entire group through re-implementation in two divisions including Timber and Building Materials Division, and Housing and Construction Division | Examining impact of the entire group through re-implementation in two divisions including Timber and Building Materials Division, and Housing and Construction Division | ○ | 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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