Basic Policy

The Sumitomo Forestry Group established the Sumitomo Forestry Group Occupational Health and Safety Policy in order to further improve occupational health and safety activities in its corporations in August 2021. Based on the fundamental concept of "SAFETY FIRST" and the implementation of the policy, we seek to create a thriving workplace by maintaining a healthy and safe work environment.

Sumitomo Forestry and all Sumitomo Forestry Group companies, as well as business partners involved in the Group's operations, are required to routinely engage in occupational health and safety activities as the foundation of corporate management in line with this policy.

The policy reflects the expectations of stakeholders for quality improvement, which were gathered through a questionnaire survey of Group employees on their quality values and activities, as well as interviews with internal executives, senior managers, and major business partners.

In addition to disclosing this policy on our website, we also use various tools to promote understanding and penetration of the policy, such as posting it on posters and including it in the employee handbook.

In addition, Sumitomo Forestry has established Rules for Safety and Health Management with an aim of fostering a workplace environment in which employees can perform their jobs in a safe and healthy manner. The rules prescribe that a general OHS manager is to be stationed at each place of business regardless of how big it is, and every year, the Company checks on the status of the officer and OHS committee meetings.

Occupational Health and Safety Management System

Promotion System

The Sumitomo Forestry Group has established Quality Control and Worker Safety Management Department as an office directly under the president strives to consistently improve product and service quality and eradicate occupational accidents. The office provides guidance and advice to the entire Group in Japan and overseas, as well as developing and strengthening the quality and occupational health and safety management system. In addition, the Sustainability Committee considers and reports on important occupational health and safety issues that affect the entire Group. We conducted a survey of the current status of quality management systems at 70 Group companies in Japan and overseas in fiscal 2022 and presented the findings at the Sustainability Committee and other entities.

Personnel department manages non-consolidated OHS of the Sumitomo Forestry, and heads of the personnel department provide OHS instructions and support branches in establishing OHS systems. In addition, OHS committees chaired by the general manager of each business division (General Manger of Personnel Department at the head office) and composed of members such as health and safety managers, industrial physicians, and labor union members were established in each business division, and matters discussed each month are posted on the intranet for the purpose of information sharing and enlightenment.

We have established individual policies and manuals for safety and health management in each of our businesses, such as Forestry, Manufacturing, Environment and Energy, and Housing, based on the characteristics of each business, aiming to prevent accidents at work sites and ensure workers' health.

Implementation and Enhancement of ISO 45001 Management System

The Sumitomo Forestry Group promotes the operation of the ISO 45001 occupational health and safety management system (ISO 45001) to reduce the risk of occupational injury and maintain safe and healthy workplaces.

Among Sumitomo Forestry Group companies, businesses with particularly high occupational injury risks are analyzed, prioritized, and promoted for implementation.

In introducing an occupational health and safety management system, we support ISO training sessions for companies considering the introduction of such a system, and we recommend that they start operating the system based on a self-declaration of conformity* and then undergo an external audit to reduce the difficulty of introducing the system.

Departments and divisions that have acquired ISO 45001 self-compliance and external certification promote the operation of ISO45001 by conducting internal auditing on a regular basis to ensure continuous improvement.

The scope of consolidated subsidiaries to be certified focuses on companies that are engaged in high occupational injury risk businesses. In fiscal 2022, the certification rate of targeted consolidated organizations was 36.0% (based on sales).

*An ISO-based management system has been established, operated and adapted by the company

Rapidly Comprehending and Dealing with Occupational Injury

The Sumitomo Forestry Group operates Two-hour Rule system designed to quickly and accurately communicate information to management in the event of an emergency situation that may have a grave impact on company management. In addition to the regular reporting line, it utilizes communication via the division responsible for risk management. Through this system, management can take the best decision speedily, ensuring an initial response which avoids loss and controls the situation. Moreover, it serves a role in collecting and accumulating reported cases and assists in improved business practice and prevention of recurrence.

Furthermore, the structure is organized so that, by sharing information with the public relations departments, important situations are disclosed to stakeholders properly and in a timely manner.

Serious occupational injuries are reported and managed through case reports on risk manifestations at monthly meetings of the Board of Executive Officers, as well as at quarterly meetings of the ESG Sustainability Committee and Risk Management Committee.

Awareness education in the Company

To encourage deeper awareness and understanding among Group employees, posters were delivered to all our workplaces, branches, and offices, as well as offices and plants of Group companies in Japan and overseas, in accordance with the establishment of the “Occupational Health and Safety Policy.” The slogan posters represent the president’s own opinions on occupational health and safety and quality for the Sumitomo Forestry Group as a whole. “SAFETY FIRST” means that the safety shall be put at the first place, and it applies to all of the Group's businesses and occupations. Sumitomo Forestry Group Occupational Health and Safety Policy is regularly disseminated to all employees through the Sumitomo Forestry Group Handbook and the business intranet, in addition to posting policy posters in easily visible locations.

Occupational Health and Safety Award

The Sumitomo Forestry Group established the Occupational Health and Safety Award at the Sumitomo Forestry Group Performance Awards Ceremony as of December, 2021, held in April 2022. Based on the concept of "Safety First," the award is given to the top entity of each head office department and division that has achieved results in raising workplace safety awareness and promoting safety activities to eliminate occupational injuries. In fiscal 2021, three companies and one school were awarded.

Purpose of the Occupational Health and Safety Award

• Raising awareness of occupational health and safety activities (especially zero occupational injury) with the participation of all employees
• Nurturing a culture of mutual respect
• Motivating employees, branches, and Group companies

Human Resources Development

The Sumitomo Forestry Group also strives to develop human resources by conducting training for internal auditors, including Group employees. In fiscal 2021, the Quality Control and Worker Safety Management Department started ISO 45001 internal auditor training courses, and in fiscal 2022, 50 employees (36 in the internal auditor qualification course and 14 in the standard explanation course) completed the courses. In addition, a course on "Occupational Safety, Health, and Quality" was established in e-learning through the company website. The Sumitomo Forestry Group has introduced two new courses, including the content of understanding and infiltrating Sumitomo Forestry Group occupational health and safety policy and the basic course of risk management, to promote occupational health and safety education. In addition, the Quality Control and Worker Safety Management Department lends DVD materials on occupational health and safety for use in employee education and safety conferences, including those at Group companies. We will continue to strengthen our safety system, by providing guidance and advice to the entire Group.

*Including those who have obtained qualifications through external training

*Cumulative total as of the end of December 2022

Targets and Performance Concerning Occupational Injuries

In the Mid-Term Sustainability Targets as part of the Sumitomo Forestry Group Mid-Term Management Plan, the Sumitomo Forestry Group sets critical targets by fiscal 2024 as "zero occupational injury and lost work time". The Sumitomo Forestry Group aims to achieve its critical targets and defines priority sustainability measures in each division. The performance toward achieving these targets is reviewed each fiscal year.

With regard to the performance of the Sumitomo Forestry Group with respect to occupational health and safety against industry standards, the Group is also working to reduce the number of occupational injuries by referring to the frequency rates in the same industry.