Sumitomo Forestry Group's Sustainability Management

Contributions to the SDGs and Material Issues

Basic Policy

The Sustainable Development Goals (SDGs) adopted by the United Nations General Assembly in 2015 set 17 goals on subjects such as poverty, equality, education, and the environment for all nations and regions to achieve by 2030. The SDGs work to solve various global issues raised as principles toward building a better international society that leaves no one behind. Our initiatives to address social issues identified in the SDGs will result in the creation of new business opportunities and business growth. On the other side, if the initiatives are not fully implemented, there is a risk of delays in complying with laws and regulations, as well as a risk of reputational damage.

Sustainability Targets of Mid-Term Management Plan in fiscal 2024 and SDGs

In February 2022, in anticipation of 2030, Sumitomo Forestry Group newly formulated a long-Term vision "Mission TREEING 2030" and Medium-Term management plan "Mission TREEING 2030 Phase 1" (2022 - 2024), which incorporated the ideal form of Sumitomo Forestry Group into the business concept, with an aim of realizing a decarbonized society. One of the five basic policies is "Further Integration of Business and ESG," and the Group has established "Sustainability Targets as part of Mid-Term Management Plan in fiscal 2024," which incorporates the Group's sustainability strategy and material issues. As for "Sustainability Targets as part of Mid-Term Management Plan in fiscal 2024," specific numerical targets are set for each business division while incorporating SDGs perspectives to address the nine material issues identified by Sumitomo Forestry Group until fiscal 2024. We shall aim to contribute to realization of a sustainable and prosperous society.

Material Issues and SDGs (Goals and Targets)

To integrate the material issues that we have identified and SDG initiatives, the Sumitomo Forestry Group has associated SDGs (goals and targets) with the 15 qualitative targets of material issues as shown below. In these activities, each division always promotes use of the PDCA cycle to establish a system for achieving the SDGs by first using indicators for evaluation (numerical targets) with fiscal 2024 set as target based on the Mid-Term Sustainability Targets.

Nine Material Issues Details of Material Issues Relevant SDGs
(Goals and Targets)
1) To enhance the value of forests and wood through sustainable forest management Nurturing forests to enhance and harness the value of wood and other forest resources.
13.1

15.1
15.2
15.3
15.4
2) To realize carbon neutrality by leveraging forests and wood resources Contributing to the decarbonization of society by reducing our own GHG emissions, by offering timber and wood products that sequestrate carbon, and by providing low-carbon/carbon-free products and services.
7.2

13.1
13.2
3) To realize a circular bioeconomy by leveraging forests and wood resources Realizing a circular society by making the most of wood, a renewable and natural resource from the forest ecosystem.
7.2
11.6

12.2
12.5

15.1
15.2
15.4
4) To provide comfortable and secure spaces for society at large Providing safe, comfortable, and secure spaces to society at large.
3.9

9.4

11.6
5) To improve the livelihood of the local communities where we operate Creating jobs through our businesses and contributing to the development of local communities.
3.9

8.3

11.3
6) To create a vibrant environment for all workers Creating a work environment where everyone throughout the supply chain is safe, healthy and motivated.
3.9

5.5

8.5
8.8
7) To create new markets with forests and wood Creating new markets that enrich the economy through the resourceful use of forests and wood.
9.4

11.3
8) To transform markets through DX and innovation Enhancing economic efficiency and added value through business transformation brought about by DX and innovation.
9.4
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.
16.5
16.7

Dissemination of SDGs

Sumitomo Forestry Group believes that it is crucial to disseminate and foster an understanding of SDGs to contribute to the SDGs through business. We conduct various initiatives to raise awareness in not only our employees but all of our stakeholders (examples below).

Implementation of SDGs Dissemination Workshops, Training and Recognition Surveys

The Sumitomo Forestry Group holds employee workshops and training by external lecturers for employees to provide learning opportunities that link SDGs to business operations.

As one example of our workshops, participants play a card game in which participants envision the achievement of their life goals at the year 2030, such as wealth acquisition, comfortable leisure lifestyle, and environmental conservation in light of economic, social and environmental barometers that reflect global circumstances. Participants were divided into groups, which then used Lego blocks as a tool to discuss what they can do based on the results as members of the Sumitomo Forestry Group to help realize a world in which "No one will be left behind".

Recognition surveys about Sumitomo Forestry Group SDG initiatives were also conducted for Group employees in Japan, which showed 87% of respondents knew about the SDGs. In addition, our internal magazine started an SDG Lab series in January 2021 to teach the relationship between our businesses and the SDGs.

The workshops and other efforts at the Sumitomo Forestry Group aim to further disseminate SDGs understanding and action toward achieving the goals, both internally and externally.

Workshop Using Lego Blocks

Workshop Using Lego Blocks

Sponsorship of the NIKKEI Decarbonization Project

Since fiscal 2021, Sumitomo Forestry has been a co-sponsor of Nikkei Inc.'s "NIKKEI Decarbonization Project," which was formed to discuss and improve the feasibility of the government plan declaring zero carbon by 2050.

Registration as a Company Promoting SDGs in Niihama City

The Niihama City SDGs Promotion Company Registration System that supports companies actively working to achieve the SDGs welcomed the Sumitomo Forestry Niihama General Administration Office as a member in February 2021.

In Niihama where the Sumitomo Forestry Group was founded, we will continue to advance activities to achieve the SDGs from encouraging the employment of people with disabilities and procuring plantation timber and certified timber which considers sustainability and biodiversity to creating public forest benefits through the management of company owned forests.

"ESD (Education for Sustainable Development) Assistant Supervisor Workshop in Niihama City" was held

In November 2021, a training session for 26 Assistant Supervisors from elementary and junior high schools in Niihama was held at Forrester House, our forest information dissemination facility, at the request of Niihama Board of Education.

Training session included classroom lectures about Sumitomo Forestry Group's businesses and the forest ecosystem, as well as field work such as walking around the neighborhood and visiting the experimental forest (fixed standard trees) to learn about Sumitomo Forestry's history, initiatives, and philosophy etc.

We will continue to assist Niihama City in achieving the SDGs in the future, such as by giving on-site classes at schools.

Registration as a Kanagawa SDGs Partner

The Kanagawa SDGs Partner program is a registration program to encourage cooperation in efforts between the prefecture and corporations and other entities working to achieve the SDGs in the prefecture. Sumitomo Forestry has been registered as a Kanagawa SDGs Partner on April 13, 2020. Broader standardization of ZEH to reduce greenhouse gas emissions aims to help combat climate change, energize the economy and bring greater environmental awareness. In addition, we internally announce our progress every quarter regarding ZEH penetration in the Kanagawa area with a goal of raising awareness of employees who belong to affiliate companies. The ZEH ratio at the time of order receipt grew from 46.6% in 2020 to 67.7% in 2021, as a result of these and other initiatives.

Kanagawa SDGs Partner Logo Kanagawa SDGs Partner Logo

Kanagawa SDGs Partner Logo

Committing to the Shizuoka City SDGs Declaration

The Shizuoka Branch of the Housing and Construction Division at Sumitomo Forestry is committed to the Shizuoka City SDGs Declaration which has been encouraging SDG activities through offices and associations in Shizuoka City in addition to develop and broadly share excellent case studies since November 2019. As a target of initiatives, we have set an 80% standardization rate for Net Zero Energy Houses (ZEH).

In addition, we offered the online interview session about SDG's to Hamamatsu Kita High School in Shizuoka Prefecture in February 2022 and explained our initiatives to first-year 10 students enrolled in the international course.

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Publication of Examples to the Educational "EduTown SDGs" Website for Elementary and Junior High School Students

Tokyo Shoseki provides educational materials on the educational EduTown: Let's Build Our Future website for the SDGs to inspire elementary and junior high school students to think about the future of our planet from a global perspective through each sustainable development goal and learn what they can do. This website also includes our activities since fiscal 2020 to foster circular forest resources by planting and using trees as an example for Goal 15 of the SDGs.

Education on the SDGs among owners of Sumitomo Forestry Houses

Sumitomo Forestry's initiatives to realize a sustainable and prosperous society were highlighted in the opening feature of the magazine published in April 2021 for owners of "Sumitomo Forestry Homes" which article was titled "Sumitomo Forestry x SDGs." As a result, we received feedback from owners that they were able to learn about the definition of the SDGs and became interested in value and potential of Wood.

Lovely Family No. 99

Lovely Family No. 99

Lovely Family No. 99
Lovely Family No. 99

Lovely Family No. 99

In addition, we solicited "SDG initiatives that can be done at home and by families" inside the owner site clubforest and announced them on the site.

As a result, all owners were able to share their initiatives and bring SDGs closer to home in their daily lives.

Introduction of the SDGs on the owners' site clubforest

Introduction of the SDGs on the owners' site clubforest