Targets and Results Concerning Occupational Injuries

In line with the Mid-Term Sustainability Targets set as part of the Sumitomo Forestry Group’s medium-term management plan, the Sumitomo Forestry Group aims to achieve "zero occupational injuries" by fiscal 2027 as one of its important targets. To this end, priority sustainability measures are being implemented at each of the divisions, and the progress on the measures is checked each fiscal year.

Concerning the Sumitomo Forestry Group's performance on occupational health and safety, the Group is working to reduce the number of occupational injuries by referring to the industry standards and the frequency rates in the same industry.

Occupational Injuries in Fiscal 2025

For the Sumitomo Forestry Group as a whole, the number of serious occupational injuries (requiring four or more days of absence) was 84 in 2024 and 73 in 2025. We had no fatal accidents in fiscal 2025.

In order to reduce occupational injuries in the housing business, we are encouraging those engaging in the business to watch the new comer training* videos, while providing supervisors with education to help them enhance their ability to fulfill their safety responsibilities. In the domestic and overseas manufacturing business, we are planning to install additional emergency stop devices and upgrade processing equipment to make it safer. In addition, we are holding online safety conferences at Group companies in Japan and overseas to share safety improvement activities across our plants and promote various activities to eliminate serious occupational injuries. In the elderly care business, we are promoting medical cooperation with medical specialists more than before to ensure the safety of customers and our staff members.

*Education given to workers when they first enter a construction site to provide them with information on on-site conditions and rules

*1Number of work-related accidents resulting in four or more days of lost worktime and in the payment of compensation benefits for absence from work in accordance with the Industrial Accident Compensation Insurance Act, including the number of cases for which applications for the payment of benefits are currently made)

*2Lost-time injury frequency rate = Number of occupational fatalities or injuries resulting in an absence from work of at least one day ÷ Total number of working hours × 1,000,000

Occupational Injuries in the Forestry Business

In fiscal 2025, in order to reduce occupational injuries, we conducted a safety conference and safety patrols in Japan. Moreover, we started to use heat monitoring watches for the prevention of heatstroke. Overseas, there are still many occupational injuries involving the use of mowing knives and chainsaws. As measures to prevent the reoccurrence of similar incidents, we have strengthened safety education for workers, revised work methods, and introduced protective equipment. Also, following an incident in which an employee got something in their eye, we adopted face shields.

*1Number of work-related accidents resulting in four or more days of lost worktime and in the payment of compensation benefits for absence from work under the Industrial Accident Compensation Insurance Act

*2Including injuries at the seedling cultivation centers

*Number of work-related accidents resulting in four or more days of lost worktime and in the payment of compensation benefits for absence from work under the Industrial Accident Compensation Insurance Act

Occupational Injuries in the Environment and Energy Business

At Japan Bio Energy, in 2024, a serious occupational accident occurred, in which a worker was injured by being caught in a rotating part beneath a conveyor belt installed at the plant. In fiscal 2025, based on the lessons learned from this incident, we checked how Japan Bio Energy and other related companies are applying our operational manual to their work with equipment that has rotating parts as well as to their work at height. We then updated some parts of the manual. In fiscal 2026 and onwards, we will continuously strive to ensure compliance with the operational manual and check the status of education on it toward zero occupational injuries.

*Number of work-related accidents resulting in four or more days of lost worktime and in the payment of compensation benefits for absence from work under the Industrial Accident Compensation Insurance Act

Occupational Injuries in the Manufacturing Business

In 2025, in order to eliminate occupational injuries caused by the use of equipment with rotating parts as well as falls from roofs, we improved the operational manual and enhanced measures for equipment safety. In the year, we had no cases of falls from roofs but the number of occupational injuries caused by the use of equipment with rotating parts remained flat year on year.

In 2026, we will implement more measures for equipment safety to achieve zero rotating part-related injuries.

In addition, we will continue to promote risk assessment, risk prediction training (KYT), and near-miss prevention activities, and share occupational injury example cases among our plants to raise their staff's awareness of safety. We will make a company-wide effort under the basic policy of "creating manufacturing sites with respect for human life and commitment to giving first priority to safety.

*Number of work-related accidents resulting in four or more days of lost worktime and in the payment of compensation benefits for absence from work under the Industrial Accident Compensation Insurance Act

*1Number of work-related accidents resulting in four or more days of lost worktime and in the payment of compensation benefits for absence from work under the Industrial Accident Compensation Insurance Act of Japan

*2Total of 7 companies (consolidated companies): Nelson Pine Industries (NPIL), Kutai Timber Indonesia (KTI), AST Indonesia (ASTI), Sinar Rimba Pasifik (SRP), Canyon Creek Cabinet (CCC), Vina Eco Board (VECO), and Pan Asia Packing (PAP)

Occupational Injuries at Construction Sites

While the number of occupational injuries resulting in four or more days of lost work increased by three compared to the previous fiscal year, the number of fall-from-height accidents remained almost flat year on year. In order to ensure that those working at construction sites wear fall prevention harnesses appropriately, install temporary bases and fall prevention nets, check the safety of scaffoldings before use, and take precautions against heatstroke, in fiscal 2025, we held an internal occupational health and safety seminar for workers of our building contractors, where they learned about the methods to prevent falls and heatstroke.

*1Number of work-related accidents with four or more days of lost worktime (including accidents involving independent contractors and excluding commuting accidents)

*21000-building rate=Number of work-related accidents with four or more days of absence per 1000 buildings

*3Lost-time injury frequency rate = Number of occupational fatalities or injuries resulting in an absence from work of at least one day ÷ Total number of working hours × 1,000,000

Occupational Injuries at Overseas Housing Sites

Many serious occupational injuries are caused by fall-from-height accidents, and examples of countermeasures are shared among Sumitomo Forestry Group companies on a regular basis. In addition, we conduct occupational health and safety training and third-party safety audits to ensure thorough compliance with safety rules. We also identify issues related to safety management to make more improvements on our safety management system.

*1Occupational accidents resulting in four or more days of absence under Japan’s occupational injury classification