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Sumitomo Forestry Group's Sustainability Management
Stakeholder Engagement
Basic Policy
The Sumitomo Forestry Group is involved with various stakeholders because the business activities conducted by the Group are in a broad range of global businesses from the upstream to the downstream with wood—as a renewable natural resource—at the core. We are always focused on communication, starting with our business activities while taking into account the relationship between the direct and indirect impact. Our basic policy is to sincerely respond to that expectations and requirements.
Stakeholders of the Sumitomo Forestry Group

Responsibilities and Communication Methods
Customers
Customer needs are diversifying as the social environment changes dramatically due to energy issues resulting from frequent large-scale disasters and global warming in addition to the decreasing population and aging society of Japan, depopulation and centralization to urban areas as well as a growing mindset toward health.
The Sumitomo Forestry Group conducts comprehensive efforts toward safety and quality issues based on these circumstances to not only reduce risk but also to create new business opportunities by responding to societal and environmental changes with the hope that it will further heighten customer satisfaction.
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Relevant Performance
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Ratio of design performance evaluations implemented
custom-built detached housing
FY2021 result99.5%
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Ratio of construction performance evaluations implemented
custom-built detached housing
FY2021 result99.3%
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Ratio of houses certified as Excellent Long-term Housing for
custom-built housing
FY2021 result94.9%
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Number of calls received by the call center
FY2021 result123,705
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Customer satisfaction ratio
(surveyed when residents move in)
FY2021 result97.4%
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Employees and Their Families
A wide range of themes have been raised concerning social challenges related to employment and labor from human rights and the form of an equal workplace without discrimination to ensuring safety on-site, considerations toward work-life balance and the reduction of long working hours.
We believe working to resolve these challenges is the driving force to improving corporate value and business promotion that have a positive effect that include gaining human resources and improving the motivation of employees while eliminating risks on employees.
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Relevant Performance
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Percentage of female employees in management positions
FY2021 target
(Non-consolidated)At least 5.5%
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Overtime working hours
FY2021 target
(Comparted to FY2013)
(Non-consolidated)32%
reduction
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Total annual participation time in internal training per employee
FY2021 target
(Non-consolidated)15.5hours
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Education expense per employee
FY2021 target
(Non-consolidated)132,000 yen
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Shareholders and Investors
In recent years, long-term institutional investors have shifted the way to evaluate a company. One emphasis from this perspective of evaluation is engagement. The dialogue between companies and their shareholders as well as investors is growing in terms of strategies and efforts to improve corporate value. Trends to promote even broader engagement are growing after the publishing of the Stewardship Code even in Japan.
The Sumitomo Forestry Group places great importance on engagement from the perspectives of properly assessing the corporate value and earning trust from the market. The Group discloses a wide range of information, including non-financial information, in a timely and transparent manner to facilitate understanding among stakeholders of our management policies and business strategies, while regularly feeds back the opinions and requirements of investors who are a vital stakeholder into operations to put in place measures toward sustainable growth.
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Relevant Performance
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Return on equity
(ROE)
(as of December 31, 2021)20.2%
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Individual meeting for institutional investors (in and outside Japan)
FY2021 results117
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Issued shares
as of December 31, 2021201,200,936shares
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Full-year dividend per share
FY202180yen
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Government and Regulatory Authorities
As a company involved in a variety of businesses centered upon wood, Sumitomo Forestry Group needs to adhere to laws and regulations by continually updating information about relevant laws and regulations in each region and country where it conducts business.
For example, housing construction must comply with the Building Standards Act as well as wide range of other laws and regulations. We also must engage in broad communication as a business involved with national lands through forest management, such as notifications to government and regulatory authority.
Therefore, we strive to earn greater trust from society by thoroughly complying with the various laws and regulations as well as ensuring proper communication with the government and regulatory authorities in each country where our businesses are expanding.
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Industries and Companies in the Same Business
The Sumitomo Forestry Group believes a fair, open competitive environment is essential to foster sustainable growth throughout the entire industry of its business.
We also know industry associations and other organizations are indispensable in creating relevant rules. We participate in organizations such as industry associations and contribute to the growth and development of the industry by taking a leading role as a front runner in the industry.
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Business Partners
Promoting sustainable forest management and procuring timber from sustainable forests are extremely vital endeavors for the Sumitomo Forestry Group, which is expanding its business around "wood". We believe initiatives are also necessary to respond to risk elements that include the laws in each country and the various regulations related to the illegal logging.
These efforts strengthen our foundation of business by promoting the preservation, development, and planting of forests as well as effectively using limited global resources such as the active use of timber cut from forests that have received Forest Stewardship Council certification together with our business partners.
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Relevant Performance
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Amount of biofuel material used (such as wood chips and pellets)
FY2021 target1,363,930
tons
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Percentage of sustainable and timber products handled
FY2021 target100%
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Students
The Sumitomo Forestry Group shares information about various initiatives as well as the medium to long-term outlook, including our philosophy, the current state of business, work style reforms, with all of the students entrusted with the next generation.
We strive to actively share information and engage in communication online to of course deepen understanding in our own company but also to facilitate mutual growth in a dramatically changing environment.
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NPOs/NGOs
The Sumitomo Forestry Group works together with everyone at NPOs and NGOs to cultivate understanding about the situations faced in each region through expert knowledge and businesses when working to confront social challenges such as biodiversity and regional development. Through the cooperation with civil society, we fulfill our role for not only the company but also many other people. We expect to produce even greater results toward solving the challenges faced by society rooted in each community.
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Global Environment
The Sumitomo Forestry Group prioritized the global environment in both the direct and indirect impact its business activities have on the world. The Group established its Environmental Philosophy in December 1994 and Group-wide Environmental Policies in October 2000.
We also formulated the Mid-Term Environmental Management Plan (FY2010-FY2014) with Mid-term environmental targets for the first time in fiscal 2009 and established the Mid-Term CSR Management Plan (FY2015-FY2020) that includes environmental targets in fiscal 2014. Furthermore, we are expanding the numerical targets of these plans and continuously enhancing the level of our environmentally conscious activities by implementing the PDCA cycle in each organization, for the Sustainability Targets as part of Sumitomo Forestry Group Mid-term Management Plan in fiscal 2024.
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Relevant Performance
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Recycling rate at new housing construction sites
FY2021 target98.0%
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Percentage of orders for ZEH type houses out of new custom-built detached housings
FY2021 target80.0%
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Global Society and Local Communities
The Sumitomo Forestry Group recognizes the importance of contributing to the growth of local communities as well as protecting the local forest resources when starting and expanding businesses.
Therefore, we work to build an infrastructure for smooth operations and business expansion in each country and region by engaging in local social contribution activities and activities that focus on efforts, such as dialogue and cooperation with the local community in the promotion of overseas businesses.
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Relevant Performance
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Expenditure on social
contribution activities
FY2021Approx.58million yen
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Social contribution donations
FY2021Approx.315million yen
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Cumulative number of visitors to Manabi no Mori
FY20211,449
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Number of children participated in Manabi no Mori Environmental Education Program
FY20211,101
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Grievance Desk
The Sumitomo Forestry Group provides a Customer Service Department as a point of contact to handle inquiries from customers and local residents near ongoing housing construction, as well as a Compliance Hotline and Harassment Help Desk for business partners and employees in addition to receiving inquiries such as complaints (in Japanese, English, and Chinese) at our website. We respond appropriately to inquiries received through our website by having the Corporate Communications Department receive them, then forward them according to their content to each relevant specialized department at the head office or each division handling the relevant operations.
In October 2019, we put in place a whistleblowing mechanism shared with Group companies overseas. An external multilingual operator is used for this reporting system to receive reports in English, Chinese, Indonesian, Vietnamese, and Thai.
Communication with the stakeholders is extremely important in plantation forest operations overseas. For example, Open Bay Timber Ltd. (OBT) in Papua New Guinea has put in place a complaint box in which anyone from the area within and outside the company can post a complaint or comment. Inquiries received in this way from local residents and others in the area are shared internally as needed so that we can undertake appropriate responses.
We have also been operating a grievance mechanism at our plantation forest operations in Indonesia since 2018. We receive opinions from local residents, both in writing and through regular visits, and respond to them within seven working days as a general rule.
In addition, Tasman Pine Forests Ltd. (TPF) in New Zealand registers any important exchanges with local residents, partner companies and other stakeholders in a stakeholder registry. Communication with a recognition of the past background helps to build smooth relationships.
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