Diversity, Equity and Inclusion

Basic Policy

The Sumitomo Forestry Group has positioned diversity, equity and inclusion (DEI) as one of the important elements for the development of its business based on one of the Group’s Values: "We promote a free and open-minded corporate culture that respects diversity."

In order to link innovation brought about by diverse abilities and values of our diverse human resources with new challenges and growth, we have set "To create a vibrant environment for all workers" as one of our material issues, and are working on it by incorporating it into the annual activity policies and measures of the administrative divisions.

The Sumitomo Forestry Group Code of Conduct provides for respect for the human rights of all individuals, including women, children, indigenous peoples, minorities, and vulnerable people, in accordance with internationally accepted human rights norms.

In recruitment activities, we attribute importance to the ambition and volition of each applicant, and do not differentiate the selection processes according to their academic background or gender. At Group companies outside Japan, the employment of local staff is actively promoted, and talented people are employed and promoted to management positions, irrespective of race or gender.

As for the disciplinary punishment and dismissal of employees, if there has been a compliance violation, the employee will be dealt with appropriately in accordance with Sumitomo Forestry’s Employment Regulations. We have also put in place a system to prevent unfair dismissals.

Recently, talent acquisition has been recognized as one of the major management issues in Japan, which is mainly due to the low birth rate and aging population. In its effort to acquire valuable, next-generation talent, Sumitomo Forestry communicates this type of approach to potential employees during recruitment and is expanding supportive programs to foster diverse work styles and the empowerment of female employees.

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Sumitomo Forestry Group Code of Conduct

Promotion System

The Workstyle Diversification Department, an independent organization within the Personnel Department, cooperates with each department to ensure that diverse people, including female employees, reemployed retirees, employees with disabilities and LGBTQ people, can work actively and achieve work-life balance according to their respective circumstances.

The Sustainability Committee, which consists of Directors who concurrently serve as Executive Officer and Divisional Managers and is chaired by the President, manages progress on Mid-Term Sustainability Targets.

Encouraging employee awareness and action

In April 2024, the Sumitomo Forestry Group issued the Sumitomo Forestry Group Declaration on Diversity, Equity and Inclusion to promote further understanding of DEI.

In September 2025, as in the previous year, we requested that employees share their ideas on the theme of “My DEI.” The topic included their daily awareness, behavior, efforts, and what they wanted to do for DEI. We received a total of 23 submissions.

In November of the same year, we launched the DEI Forest Project, which encouraged employees to think about and implement DEI measures with a sense of ownership. Through this project, we provide employees with opportunities to share their ideas and experiences related to DEI on the large board installed at the head office and through the website of the Workstyle Diversification Department. On the “DEI Forest” board, employees can freely post their messages on “My DEI” using leaf-shaped magnets.

In addition, we again held a participatory DEI forum and interactive meeting this year. A total of about 30 people from six Sumitomo Forestry Group companies participated in the event. It was comprised of the introduction of “My DEI,” a DEI-themed roundtable meeting between participants and the executive vice president of Sumitomo Forestry, explanations about DEI and unconscious bias, and an interactive meeting among participants. Attendees provided positive comments, including, “I’ll use what I learned today in my daily activities,” “I was encouraged by connecting with like-minded colleagues at the event,” and “The examples shared by other departments were very insightful.”

Also, in 2025, we started publishing a report entitled “DEI Communication Report,” which introduces our DEI promotion activities, “My DEI” ideas shared by employees and their initiatives, and executives’ messages on DEI. This report, which provides employees with DEI-related information and is made with their participation, is designed to encourage all employees to think of DEI as their own issue.

Sumitomo Forestry Group Declaration on Diversity, Equity and Inclusion

Sumitomo Forestry Group regards DEI (diversity, equity and inclusion) as a key element in developing its businesses. To create new value and pursue further innovation, we are committed to promoting DEI.

Diversity :
We shall accept, embrace and respect the diversity of each individual in terms of gender, age, nationality, ethnicity, race, place of origin, religion, beliefs, disability status, sexual orientation, gender identity, as well as workstyle, career path, values and other qualities.

Equity :
By providing the best resources and opportunities according to each individual’s circumstances, we shall create a fair environment where everyone can unharness their abilities.

Inclusion :
Inclusion is when individuals feel safe to voice their opinions because they know they are respected. By supporting and cooperating with each other and by building a sense of unity, we shall work together in ways that bring out our fullest potential.

President and Representative Director Toshiro Mitsuyoshi

Promoting the Active Involvement of Female Employees

The Sumitomo Forestry Group is committed to providing employees with a workplace where motivated employees can thrive irrespective of gender, age, nationality, race, religion or disability. In an endeavor to empower female employees in particular, the Group has sought to improve its systems relating to childcare, education and training, and at the same time, has taken a proactive stance on promoting the use of these systems.

In fiscal 2013, Sumitomo Forestry announced the Sumitomo Forestry Group Declaration on Empowering Women under the name of its president. Since then, we have been making efforts in accordance with the policies stated in this declaration.

Since April 2024, under the Sumitomo Forestry Group Declaration on Diversity, Equity and Inclusion, we have been working on DEI promotion initiatives, including those to empower women.

Percentage of Female employees in management positions
FY2025 target
(Non-consolidated)

At least 4.1%

Percentage of Female employees in management positions
As of December 31, 2025
(Non-consolidated)

4.2%

Development of Numerical Targets for Promotion of Women to Management Positions

In 2014, we set numerical targets for the appointment of women to managerial posts, in order to foster further empowerment of female employees at Sumitomo Forestry. Also, we publicly announced our goal of raising the ratio of female managers to at least 5% by 2020, and we have been working towards this goal.

In 2021, we endorsed the "Challenge to 30% by 2030," a goal set by the Keidanren (Japan Business Federation) to increase the percentage of women on the board of directors to 30% by 2030.

In 2022, in line with our Mid-Term Sustainability Targets and fourth action plan to ensure compliance with the Act on the Promotion of Women's Active Engagement in Professional Life, we started to implement measures to raise the percentage of female employees in management positions (managers and supervisors) to 4.1% or more by March 31, 2026. As a result, the percentage reached 4.2% as of the end of December, 2025.

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Training for Housing Advisors

We provide our housing advisors working at model homes with regular training. By using videos and manuals that summarize the details of practical operations and points of customer support, we help them serve as contact points for "Sumitomo Forestry homes."

In addition, for new trainers, we provide training that includes briefing on the company as well as the basics of customer service and telephone service. This is to help them understand the details of the new housing advisor training program, so that they can train new housing advisors in line with the trainer's guide.

In fiscal 2025, a total of 66 new trainers received the training. In the future, we will also conduct training, including online seminars, to help them improve their skills to respond to customers’ situations and requests in a more attentive manner.

Initiatives Aimed at Increasing the Motivation of Female Employees

The Workstyle Diversification Department participates in a home builder information exchange group. This group holds an annual networking event for female sales personnel and one for female designers.

The number of female employees in the aforementioned job categories in the industry is still small. Therefore, these events are intended to help women engaging in these jobs to share role models beyond organizational boundaries across the entire industry and to provide exchanges between those facing similar challenges, thereby motivating them more to demonstrate their respective abilities.

In 2025, 10 employees from our company participated in the female sales personnel event, while five joined the female designer event.

At the networking events, the results of case studies on role models were presented, and group discussions were held. Comments made by participants included, “I learned about new values and experiences which I would not be exposed at my own workplace. It really broadened my view,” and “The event provided me with an opportunity to learn about a range of career options and think about how to balance my life events and work.” The events thus served to increase the employees’ motivation.

Eligible Persons	Description
Sales Staff	Regular Female Sales Staff Training
Sales Staff	Networking event for female sales personnel (held jointly by home builders)
Designers	Networking event for female designers (held jointly by home builders)
Managers and Manager Candidates	Training for new managers (once a year), training for female leaders (once a year)
Administrative planning staff	Career Advancement Training (1 time a year)

Various Career Development Programs

Sumitomo Forestry has put in place Free Agent (FA) programs, in-house recruitment program, and a job transfer system so that employees can think about and advance their own careers. By providing a means for employees who satisfy a certain set of conditions to transition into a desired role, we help them fully leverage their skills, thereby increasing their work motivation and revitalizing their organization.

In addition, Sumitomo Forestry supports employees' career formation by conducting career design training tailored to each major milestone age, such as Career 30 voluntary training for employees aged 30 to 32, Career 40 mandatory training for employees in their 40s and Career 50 mandatory training for employees in their 50s.

LGBTQ initiatives

Sumitomo Forestry is promoting training and establishment of systems and mechanisms to support LGBTQ initiatives as part of its DEI promotion efforts.

Fostering Employee Awareness

Relevant training was provided to executives, employees of the Personnel Department and the General Administration Department in 2021, to all site managers and general affairs managers in 2022, to all Group managers in the Housing Division in 2023, and to all personnel in charge of recruitment and training in 2024. We also mandated all employees to attend the e-learning course on LGBTQ-related issues.

In addition, we continuously post information about various measures and participation information for LGBTQ-related events on our internal website to raise employee awareness and increase the number of allies (people who understand and support the LGBTQ community). In 2023, we created an original Allies sticker and distributed it to employees.

As a member of the LGBT-Ally Project,* we participated in the Tokyo Pride Parade and Festival 2025. This LGBTQ support event was held on June 8, 2025, and some of our employees volunteered to cheer at the parade along the road.

*The LGBT-Ally Project has been held by OUT JAPAN Co., Ltd. since 2017.
In 2025, the company started to release a desktop wallpaper for June as the “Pride Month” and invite people to cheer at the parade along the road.

Provision of Necessary Systems

In January 2022, we established rules on the partnership system, making same-sex and de facto couples eligible for the same in-house systems and benefits established for legally married employees. Accordingly, the systems for special leave, childcare and nursing care, as well as in-house rules on condolence and celebration payments are now also applied to couples registered with the partnership system and their children and parents.

By approving and applying relevant internal systems to same-sex partnerships, which are currently not stipulated by law, we have created an environment in which employees with same-sex partners can work with peace of mind and continue to play an active role at the company, even when they have life events such as childcare or elderly care. In addition, as new family styles not bound by legal marriage are expanding, we have also made couples in de facto marriages eligible for the systems.

Also, we have set up an external consultation desk where employees can consult with counselling specialists anonymously.

In recognition of these efforts, Sumitomo Forestry was awarded the highest rating of Gold in the PRIDE index, which evaluates LGBTQ initiatives in the workplace, for four consecutive years in 2022, 2023, 2024, and 2025. We will continue to strive to create an environment where everyone can work comfortably and actively.

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Promoting the Employment of Persons with Disabilities

Sumitomo Forestry promotes the employment of persons with disabilities, giving first priority to assigning them to the workplace and job that fit their individual characteristics. Our employment rate of persons with disabilities was 2.57%^*1 as of the end of December 2025.
Furthermore, in order to improve the retention rate of persons with disabilities, we hold face-to-face meetings and phone interviews between these employees and staff members of the Personnel Department. We also hold online interactive meetings for employees with disabilities to share their ideas on doing their work in a better way and meeting challenges, thereby increasing their work motivation and helping them work stably.

Furthermore, we have been encouraging employees to take the Universal Manners Test^*2 since fiscal 2018. Every year, all employees excluding those on leave take the third level course. In fiscal 2021, we became the first company in the housing industry to achieve a 100% attendance rate for the course. Since then, we have been encouraging all employees, including those newly hired, to acquire the certification.*3 Through this initiative, we aim to promote and retain the employment of persons with disabilities and also improve the quality of service that we offer to various customers and business partners.

*1Calculated collectively for Sumitomo Forestry, its special subsidiary Sumirin Wood Peace and its affiliated Group company Sumirin Business Services

*2Test on the mindset and actions necessary to provide better services to a diverse range of people, including the elderly, people with disabilities, parents with strollers, and foreign nationals

*3By December 2025, all employees except for employees on long-term leave and those seconded to other companies completed the course.

Employment rate of persons with disabilities
As of the end of December 2025
(Non-consolidated^*1)

2.57%

	FY2022	FY2023	FY2024	FY2025
Employment Rate of Persons with Disabilities (%)	2.40	2.46	2.60	2.57

* Calculated collectively for Sumitomo Forestry, its special subsidiary Sumirin Wood Peace and affiliated Group company Sumirin Business Services

Sumirin Wood Peace-aiming to actively promote employment of persons with disabilities

Sumirin Wood Peace is located in Niihama City, Ehime Prefecture. This Sumitomo Forestry Group company manufactures, processes, and prints woodwork products. In April 2017, Sumirin Wood Peace obtained certification as a special subsidiary under the Act to Facilitate the Employment of Persons with Disabilities. The company was launched with five people with disabilities and subsequently expanded its business. As of December 2025, Sumirin Wood Peace employs 12 people with disabilities. Going forward, it will further promote employment for the stability of its business.

Selective Retirement and Re-employment of Retirees

Introduction of Selective Retirement System

Sumitomo Forestry introduced a selective retirement system in April 2020 to extend retirement until March 31 of the fiscal year the employee reaches the age of 65. We have also introduced a system to move up retirement to the day before the employee's 60th birthday when requested.

Employees who select retirement before the age of 65 can continue to work at the company in a flexible style, including reducing the number of work days by concluding a fixed-term re-employment contract with the company.

The annual average re-employment rate remained at around 80% before introduction of the selective retirement system, although it varied from year to year. Since the selective retirement system was introduced, more than 90% of employees continue to work after reaching the age of 60 on average per year.

The rate of employees who continued to work after reaching the age of 60 in fiscal 2024 was 91.1% (including re-employment of one retiree).

Re-employment of Retirees

In fiscal 2006, Sumitomo Forestry adopted a system to re-employ personnel who retired at 60 until the end of the fiscal year in which they reach the age of 65. The preconditions are that they have had at least 10 years of service at the company, have specific qualifications and experience, and wish to be re-employed. The retirement age was uniformly set at 60 years, and about 80% of retirees applied for re-employment each year in and after April 2020, when the selective requirement system was introduced. We have been maintaining our re-employment rate at 100% since the launch of the re-employment system, including the period after the adoption of the selective retirement system.

Since the introduction of the selective retirement system, the number of employees who select retirement before the age of 65 in light of their own circumstances and apply for re-employment has been increasing. In consideration of the needs of the departments and the wishes of the applicants themselves, we respond individually to the applicants as necessary. For example, we may allow a re-employed retiree to reduce their number of working days in and after the second year of re-employment. By allowing re-employed retirees to work flexibly, we are helping those in the senior generation play an active role in the company.

Senior Human Resources Bank Center

We established the Senior Human Resources Bank Center in April 2018 to extend re-employment contracts with employees who are necessary to the company and would like to keep working even after the end of the fiscal year when they turn 65—which is the upper age limit for re-employment of retirees—until they are 70. As of April 2020, when the selective retirement system was adopted, Sumitomo Forestry has abolished the upper age limit to make it possible for the company to renew re-employment contracts with employees even after they reach the age of 70.

Thus far, 206 employees have been registered as “senior human assets,” of whom 85 are still working as of December 31, 2025.

Among them, 11 persons are aged 70 or older (including those working in other Group companies).

Return to Work Application System

Sumitomo Forestry has operated the Return to Work Application System. The aim of this system is to re-employ talented personnel who resign due to unavoidable circumstances, such as childcare and eldercare. Employees can register their wish to return to work at the time they resign, on the precondition that they have worked at the company for at least three years before resignation.

When the company receives an application for re-employment, it will go through a selection process based on its needs and the skills of the applicant. Applicants who are successfully re-employed within three years of resignation are able to regain the same level of position as before.

Direct Employment of Non-permanent Employees

In recent years, regulations on temporary staffing have been strengthened to eliminate disparities arising out of different forms of employment. In response, Sumitomo Forestry has established a system for talented temporary employees to be directly employed by the company as "fixed-term employees (“partner employees”). We also operate a system to promote partner employees to full-time positions. In fiscal 2025, 11 partner employees^* were promoted to permanent employee status under the system.

Furthermore, we have implemented a system for partner employees with disabilities (“challenged employees”) to transition to permanent employment.

*Number as of April 1

FY2022	FY2023	FY2024	FY2025	FY2026
13	12	11	11	9

*As of April 1 of each fiscal year

FY2022	FY2023	FY2024	FY2025	FY2026
1	2	3	3	1