Contributing to Communities Where Sumitomo Forestry Operates

The Sumitomo Forestry Group aims to contribute to sustainable local development through its operations. When starting new businesses or expanding its overseas business sites, the Group's policy is to consider the environment, revitalize local economies and promote employment and thereby operate in harmony with local communities.

Activities in Indonesia

Support for Children through the KTI Educational Foundation

PT. Kutai Timber Indonesia (KTI) founded the KTI Educational Foundation in 2000 to commemorate its 30th anniversary with the purpose of improving the livelihood of people in Indonesia through education as well as engaging in social activities. This foundation primarily provides educational support to impoverished children as well as school supplies to public schools in Probolinggo in the East Java province where a Sumitomo Forestry Group plant is located. In fiscal 2023, we gave school supplies to the orphaned children, made donations to facilities unable to provide a sufficient number of masks or hand sanitizer, and contributed IDR 103,174,053 (approx. 950,000 yen).

Community Development through Project EARTH Initiatives

Sumitomo Forestry has also been involved in Project Earth since 2009 to offset CO₂ (approximately 60,000 tons) emitted from the harvesting of wood used for primary building materials of Sumitomo Forestry Homes, and emitted from transport, fabrication, and construction by planting in Indonesia. This project combines "environmental reforestation" for the purpose of recovering the ecosystem of degraded forests in national parks and community-oriented "industrial tree plantations" that unify sustainable comprehensive forest management and community contributions.

Environmental Reforestation to Combat the Harsh Natural Environment and Forest Fires

In Bromo Tengger Semeru National Park located in East Java, Indonesia, Sumitomo Forestry planted about 1.1 million trees, including supplementary planting, over roughly 700 hectares of planted forest between fiscal 2009 to fiscal 2016. Mount Bromo erupted in 2010 at this national park damaging the plantation forest due to volcanic ash and gas. At the end of a severe dry season in November 2014, a large fire broke out and burned almost all of the roughly 400 hectares of forest planted up to 2013. We replanted the forest, constructed a fire belt that was six meters in width and 20 km in total length, prepared water and equipment for fire-fighting, and introduced around the clock dry season patrols. However, in October 2019, a large number of forest fires broke out in the national park and once again damaged approximately 470 hectares of planted forest.

After the afforestation completed in fiscal 2017, we continued to manage the planted forest, and transferred the environmental afforestation site to national park in March 2020 due to expiration of the agreement with the national park for the implementation of the project. Currently, the national park is maintaining and managing the afforestation site and restoring the ecosystem.

Community-oriented Industrial Tree Plantation Side-by-Side the Local People Who Wish to Plant Trees

Starting in the Lumajang Regency located at the foot of Mount Semeru in East Java, Indonesia, Sumitomo Forestry worked with the local people to cultivate about 3,800 hectares of community oriented industrial tree plantation between fiscal 2010 and 2017. The harvest and sell of the grown trees that were planted will stimulate the local economy. KTI, a Sumitomo Forestry Group company, took charge of the local activities promising to purchase future logs to give the local people confidence in their afforestation efforts. Sumitomo Forestry not only engaged in afforestation activity, but also provided local lifestyle infrastructure, building routes necessary for reforestation, and made donations such as academic supplies to kindergartens and elementary schools in addition to setting up public restrooms in villages.

After completing the afforestation efforts in fiscal 2017, the cultivation and reforestation efforts transferred to KTI and participating citizens. Thereafter, the local people involved have been planting trees they themselves cultivated and harvested in addition to seedlings provided for free from KTI. In fiscal 2023, KTI provided around 200,000 seedlings to local community members.

66,891 houses were delivered during this project period, which began in 2009, with a roughly 400,000-ton CO₂ fixation target. As of ten years since these afforestation efforts, the cumulative total estimated CO₂ fixation was 430,000 tons*. This is expected to reach our carbon dioxide fixation target of 6 tons per household.

*Excludes CO₂ fixation for environmental reforestation deemed to have a high risk of fires and other disasters

Respect for Local Tradition and Culture at Overseas Forests

At forestry business in Indonesia, Sumitomo Forestry also deepens its understanding about the local culture and traditions by engaging in efforts to respect the traditions and cultures of local communities, such as capital support for traditional events held by local residents.

Building Infrastructure and Providing Basic Educational and Medical Support in Neighboring Business Regions

PT. Mayangkara Tanaman Industri (MTI), a large-scale commercial afforestation project in Indonesia, views sustainable development of local communities as a vital managerial challenge, and thereby, undertaking community services that meet the needs of local residents in the areas through education, medicine and hygiene, infrastructure development, agriculture, and livelihood enhancement.

Creation of Employment Opportunities

This forestry business acts as an invaluable employment opportunity for a local community with little industry. In particular, seedling production creates local employment opportunities for women who have few options.

Infrastructure

In fiscal 2018, we began applying the water level management technology we have developed through our projects to flood control in the surrounding communities. We are providing surrounding villages with infrastructure that is easy to maintain and can effectively regulate water levels.

Education, Medical and Sanitation Support

A water purifying plant was setup in villages in business regions to supply safe water for daily use to residents. In addition, Sumitomo Forestry works to provide basic educational support by building local elementary schools and deploying teachers where facilities and instructors are lacking as well as medical support by operating clinics and providing free examinations for neighboring residents.

In addition, we are carrying out environmental education initiatives to raise the environmental awareness of children attending local elementary schools. In addition to classes on the importance and methods of protecting forests, flora and fauna, we provide students with a hands-on tree planting experience and donated stationery.

Activities in Papua New Guinea

Building Social Infrastructure and Medical Support

Open Bay Timber Ltd. (OBT) in Papua New Guinea has been involved in forestry businesses since 1984 and it contributes greatly to the economic development of the region. In 2007, OBT became a group company of Sumitomo Forestry to further healthy expansion and effective use of wood resources from planted forests.

Clinic Operations

OBT also operates its own clinics and super markets for their employees and local residents to use because the development of social infrastructure is insufficient in Papua New Guinea. In neighboring villages, OBT nurses periodically visit neighboring villages to perform infant health checkups and provide advice to the sick as well as conduct educational activities.

The Open Bay Clinic is staffed day and night by health workers employed by OBT, who provide general medical care, deliveries, and medications, and also receive inpatients and transport critical patients over land and sea to large hospitals. The patients receiving care are not only employees and their families but also many people who travel from far away for treatment.

Activities in United States

Social Contribution Activities through the Housing Business

Mainview Day

MainVue Homes of Sumitomo Forestry Group set up MainVue Day in 2015 as a day each year for employees to participate in volunteer activities. This program both works as an ongoing philanthropic activity and also an opportunity to reflect on a corporate philosophy that focuses on giving back to society.

In 2023, we cooperated with the St. Stephen Housing Association, an NPO that provides temporary housing to homeless families in Washington State and supports them in reintegrating into society, and worked on painting doors, repairing playgrounds, and landscaping at City Park Town Homes, a townhome subdivision located in the city of Auburn. MainVue engages in the development and sale of a large number of subdivisions in the area around Auburn, so we organized volunteer activities with the aim of contributing to the community.

Participation in Habitat for Humanity

Crescent of Sumitomo Forestry Group participates in various programs sponsored by Habitat for Humanity, an international non-profit organization (NPO) that provides housing assistance in more than 70 countries worldwide.

In 2023, Crescent and a developer active in the Charlotte area collaborated on a project to build a detached house in Charlotte, North Carolina, USA. This project is geared toward low-income families who are unable to afford housing.

Sumitomo Forestry Group companies DRB, Edge Homes, and Mark III Properties also donated to Habitat for Humanity and took part in housing support activities.

Participation in Environmental Conservation Efforts

In 2023, Crescent teamed up with Catawba Lands Conservancy, which aims to preserve the land and environment around Charlotte, North Carolina, and Tarheel Trailblazers, which is developing a bicycle path in the River District, a large-scale master plan development in progress. We participated in activities to remove invasive species and pick up trash on mountain bike trails, and to protect native plants and ecology. Crescent will continue to actively implement environmental promotion activities in the future.

Tree planting in Denver and Atlanta

Employees of Crescent's Denver office participated in the Denver Digs Trees tree-planting initiative with The Park People, an NPO, planting 25 native trees in the local Washington park.
In addition, employees of the Atlanta office worked with Trees Atlanta, another NPO, to remove invasive plants at Connally Nature Park.

Participation in Social Welfare Activities

Crescent is also actively involved in social welfare activities.

In 2023, Crescent employees actively engaged in social welfare activities, such as sponsoring the Second Harvest Food Bank, which volunteers to deliver donated food to people in need, and soliciting donations of 3,700 items for Classroom Central, which provides school-related supplies for children.

She Built This City & Roof Above

She Built This City, which aims to create a pathway for women to work in the construction industry, and Roof Above, which unites communities to end homelessness, helped Crescent employees create much-needed picnic tables and benches at facilities for the homeless.

Activities in Australia

In 2023, Henley Properties Group, a company that builds and sells detached houses, sold one house that was built with the help of a residential land developer and component suppliers, and donated the proceeds. Many people from the company's business partners participated in this activity, from providing land, designing, estimating, manufacturing and procuring materials, managing construction, and building. Specifically, Henley Properties donated to a children's hospital all the earnings from the charity auction of a two-story house in Lara, west of Melbourne. Since its inception in 1993, donations through the auction have totaled A$19.25 million (approximately1,866.1 million yen) , which has been used for medical expenses for children suffering from illnesses.

Activities in New Zealand

Contributions to Local Disaster Prevention and Rescue Efforts

Tasman Pine Forests (TPF) contributes to integrated fire prevention/extinguishing activities in the community in cooperation with Fire and Emergency New Zealand (FENZ), a New Zealand firefighting organization, and neighboring forestry companies. Specifically, TPF contributes firefighting equipment such as fire engines to be operated by the FENZ-led local fire brigade to help prevent and extinguish forest fires in the community.

In addition, TPF employees and logging contractors are working to improve their disaster awareness and capabilities by attending elementary forest fire extinguishing training.
Since fiscal 2017, TPF has been donating activity capital for natural disasters that occur in the region and for leisure accidents as a sponsor to the Nelson Marlborough Rescue Helicopter Trust every year. This trust deployed rescue helicopters 437 times in fiscal 2023. The TPF logo is posted on the Marlborough Rescue helicopter.

Teapot Valley Area Natural Forest Restoration Project Begins

Beginning in 2021, a project to restore natural forests damaged by the Pigeon Valley fire in TPF's mountain forests in February 2019 has begun. Teapot Valley was one of the areas most affected by the fire, and the area contained rare trees and wetlands. The project is part of the New Zealand government's Billion Tree Plantation Project, a government initiative that will last approximately four years. TPF is participating in the project from a financial and operational perspective. In September 2022, we also invited officials from the Ministry of Primary Industries and Tasman District Council to participate in reforestation activities. In 2023, 13,000 trees of various species were planted to establish a vibrant ecosystem.

Activities in Myanmar

Support for Building Monastic Schools

Sumitomo Forestry is involved in the Myanmar Monastic School Support Team and the secretariat, bodies established to support the construction of monastic school-style community schools in Myanmar. Activities which began in 2014 aim to build one monastic-style school every year through donations of companies and individuals who see the benefit. Six schools have been completed to date. At the completion of a school, the donor companies held an opening ceremony with participants from advocating companies and an opportunity to engage with the local children.

The construction has been postponed since fiscal 2021 due to the COVID-19 and other factors. In the future, we will consider the continuing the project while keeping abreast of the local situation.