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  • Overall approach
    4/16
    • Overarching commitment on deforestation
      0/6
    • Signatory to an initiative tackling deforestation
      1/1
      Signatory
      Yes
      1/1
      Company is a signatory to the UN Global Compact; Sumitomo Forestry has been a member of the WBCSD* since January 2020."
    • Awareness of the value of forests
      1/1
      Awareness
      Yes
      1/1
      "One of the reasons behind climate change is deforestation around the world. In this area, too, Sumitomo Forestry is pursuing numerous sustainability initiatives both in Japan and overseas in terms of forest management and timber distribution"
    • Deforestation as a business risk
      1/1
      Business risk
      Yes
      1/1
      Does the company recognise the risk as financial, operational, competition, reputational, or other? Please detail.: all
      "Forests around the world are decreasing due to illegal logging, excessive slash-and-burn farming, conversion to agricultural land and other practices, and this has been a social issue on a global scale. Because timber is one renewable resource essential to Sumitomo Forestry Group's businesses, deforestation and forest degradation are also significant challenges concerning sustainability of its business operations. As a responsible builder of wooden houses and buildings as well as a trader of timber and building materials, we work with our suppliers to build a reliable supply chain and contribute to developing a sustainable society." [...] "The Sumitomo Forestry Group could jeopardize its own businesses that handle wood resources if it neglected its duty and dealt in illegally logged timber. Moreover, these actions would harm the image of the company and could directly damage our business performance such as compensation for damage and turnover."
    • High-level management of deforestion
      1/1
      High-level management
      Yes
      1/1
      Which commodities does it apply to?: Timber; Pulp & Paper

      How often does the committee or board meet to assess company's progress on addressing deforestation-related issues?: Annually
      "The Sumitomo Forestry Group has established a new Sustainability Committee as of fiscal 2018 and conducts progress management of the Mid-Term CSR Management Plan, which incorporates business strategies to contribute to reaching these SDGs" [...] "Ongoing Timber and Materials Procurement that Considers Sustainability and Biodiversity - Management forests while mitigating climate change and protecting biodiversity - Maintain and expand the area of certified forests [...] Expanding the utilization of sustainable forest resources - Increase quantity of sustainable timber and timber products handled and used"
    • Executive compensation linked to deforestation
    • Target to reduce emissions from land-use change
      0/3
    • Reporting on emissions from land-use change
      0/3
    • Disclosure of conservation activity
    • Disclosure of reforestation activity
      Yes
      0/0
      How many hectares of reforestation or restoration are being or have been conducted or facilitated by the company?: 28.8 hectares
      "As of fiscal 2019, we had reforested a total of approximately 28.8 hectares in six locations" in Vietnam.
  • Commodity score
    43/84
    • Timber
      45/84
      • Commitment Strength
        21/28
        • Commitment to protect priority forests
          13/17
          • Commitment details
            Zero-gross deforestation
            8/10.7
            Commitment to protect priority forests
            Zero-gross deforestation
            8/10.7
            Which certification schemes are used?: FSC
            "In the “Mid-Term Sustainability Targets as part of the 2021 Mid-Term Management Plan” announced in May 2019 [...] we will promote the gradual increased use of alternative wood (natural timber from forest thinning or plantation timber) to stop the handling of items that do not fall under our definition of sustainable timber or wood products. By our target fiscal year of 2021, we strive to achieve our procurement goal of 100% sustainable timber and wood products [....] We define timber and wood products as sustainable if they fulfill one of the following: 1. Certified timber and pre-certified timber: FSC, PEFC, and SGEC (Regardless of CoC connection, we place emphasis on certification at time of production and promote a shift to certified timber)"
          • Commitment applies to all regions, suppliers and operation
            Yes
            3/3
            Commitment applies to all regions, suppliers and operation
            Yes
            3/3
            "In the “Mid-Term Sustainability Targets as part of the 2021 Mid-Term Management Plan” announced in May 2019 [...] we will promote the gradual increased use of alternative wood (natural timber from forest thinning or plantation timber) to stop the handling of items that do not fall under our definition of sustainable timber or wood products. By our target fiscal year of 2021, we strive to achieve our procurement goal of 100% sustainable timber and wood products [....] We define timber and wood products as sustainable if they fulfill one of the following: 1. Certified timber and pre-certified timber: FSC, PEFC, and SGEC (Regardless of CoC connection, we place emphasis on certification at time of production and promote a shift to certified timber)"
          • Target date
            2021
            1.8/2
            Target date
            2021
            1.8/2
            "In the “Mid-Term Sustainability Targets as part of the 2021 Mid-Term Management Plan” announced in May 2019 [...] we will promote the gradual increased use of alternative wood (natural timber from forest thinning or plantation timber) to stop the handling of items that do not fall under our definition of sustainable timber or wood products. By our target fiscal year of 2021, we strive to achieve our procurement goal of 100% sustainable timber and wood products [....] We define timber and wood products as sustainable if they fulfill one of the following: 1. Certified timber and pre-certified timber: FSC, PEFC, and SGEC (Regardless of CoC connection, we place emphasis on certification at time of production and promote a shift to certified timber)"
          • Interim target date
            No
            0/1
        • Commitment to a traceable supply chain
          8/11
          • Commitment details
            Traces to Point of production
            5.3/5.3
            Commitment to a traceable supply chain
            Traces to Point of production
            5.3/5.3
            "Timber and wood products in the B (medium risk) and C (high risk) categories should not be solely evaluated with documentation to prove that they are legally harvested according to that country’s laws and regulations. In addition, when necessary, company staff are sent for on-site inspections to ensure traceability back to the logging site." " We formulated a procurement policy and set up a Timber Procurement Committee to confirm legality, traceability all the way to be the logging sites, and sustainability"
          • Commitment applies to all regions, suppliers and operation
            Yes
            3/3
            Commitment applies to all regions, suppliers and operation
            Yes
            3/3
            "Timber and wood products in the B (medium risk) and C (high risk) categories should not be solely evaluated with documentation to prove that they are legally harvested according to that country’s laws and regulations. In addition, when necessary, company staff are sent for on-site inspections to ensure traceability back to the logging site." " We formulated a procurement policy and set up a Timber Procurement Committee to confirm legality, traceability all the way to be the logging sites, and sustainability"
          • Target date
            No target date
            0/2
            Target date
            No target date
            0/2
            "Timber and wood products in the B (medium risk) and C (high risk) categories should not be solely evaluated with documentation to prove that they are legally harvested according to that country’s laws and regulations. In addition, when necessary, company staff are sent for on-site inspections to ensure traceability back to the logging site." " We formulated a procurement policy and set up a Timber Procurement Committee to confirm legality, traceability all the way to be the logging sites, and sustainability"
          • Interim target date
            No
            0/1
            Interim target date
            No
            0/1
            "Timber and wood products in the B (medium risk) and C (high risk) categories should not be solely evaluated with documentation to prove that they are legally harvested according to that country’s laws and regulations. In addition, when necessary, company staff are sent for on-site inspections to ensure traceability back to the logging site." " We formulated a procurement policy and set up a Timber Procurement Committee to confirm legality, traceability all the way to be the logging sites, and sustainability"
      • Social Considerations
        7/18
        • Labour rights in the supply chain
          Yes
          4/4
          Labour rights in the supply chain
          Yes
          4/4
          Details of commitment: Discrimination; Forced Labour; Child Labour; Freedom of association
          "Based on its Corporate Philosophy and Our Values, the Sumitomo Forestry Group shall manage its operations, including the supply chain, in accordance with this Code of Conduct. [...] Discrimination[...] Forced Labour[...] Child Labour[...] Freedom of association"
        • Inclusion of small-scale farmers
          No
          0/4
        • Gender equality in the supply chain
          Discrimination/Gender Rights/Harassment
          1/4
          Gender equality in the supply chain
          Discrimination/Gender Rights/Harassment
          1/4
          "Based on its Corporate Philosophy and Our Values, the Sumitomo Forestry Group shall manage its operations, including the supply chain, in accordance with this Code of Conduct. [...] Prohibition of discrimination and the promotion of diversityWe shall not discriminate on the basis of race, ethnicity, nationality, gender, religion, ideology, disability, sexual orientation, gender identity or other. In addition, we shall work to secure and promote diversity."
        • Commitment to remediation
          No
          0/2
        • Commitment to ensure Free, Prior and Informed Consent
          Yes the company commits to securing FPIC prior to acquiring new interests/developments/expansions
          2/4
          Commitment to ensure Free, Prior and Informed Consent
          Yes the company commits to securing FPIC prior to acquiring new interests/developments/expansions
          2/4
          "We operate under the following philosophy when obtaining new forests in our overseas forestry business. 1. To build good relationships with surrounding villages and local communities. 2. The major presumption is that HCVA*1, HCSA*2 and FPIC*3 are to be implemented. It is also possible to eliminate environmental risk, and there must be no identified past environmental problems"
      • Reporting and Implementation
        17/38
        • Reporting against commitments
          3/6
          • Commitment to protect priority forests
            Yes
            3/3
            Commitment to protect priority forests
            Yes
            3/3
            Sumitomo Forestry reports on the FSC status of each site - "Status of Sumitomo Forestry Group Forest Certification/ CoC Certification*1 (FSC) [...] Sumitomo Forestry Group has obtained FM certification for 221,000 hectares and CoC certification for 10 organizations."
          • Commitment to a traceable supply chain
            No
            0/3
        • Reporting is independently verified
          2/4
          • Commitment to protect priority forests
            Yes: third-party
            2/2
            Commitment to protect priority forests
            Yes: third-party
            2/2
            Which processes or groups does the company use for third party verification?: FSC Certification

            Which tools, approaches, third-party verification, including certification, schemes are used?: FSC Certification
            "In the “Mid-Term Sustainability Targets as part of the 2021 Mid-Term Management Plan” announced in May 2019 [...] we will promote the gradual increased use of alternative wood (natural timber from forest thinning or plantation timber) to stop the handling of items that do not fall under our definition of sustainable timber or wood products. By our target fiscal year of 2021, we strive to achieve our procurement goal of 100% sustainable timber and wood products [....] We define timber and wood products as sustainable if they fulfill one of the following: 1. Certified timber and pre-certified timber: FSC, PEFC, and SGEC (Regardless of CoC connection, we place emphasis on certification at time of production and promote a shift to certified timber)"
          • Commitment to a traceable supply chain
            No
            0/2
        • Deforestation cut off date
          No
          0/2
        • Collaborative actions
          Yes
          2/2
          Collaborative actions
          Yes
          2/2
          What initiatives does the company participate in?: "Forest conservation and planting of deforested areas" with the Japan International Cooperation Agency (JICA)

          What is the nature of that participation?: Providing support/advice/experience/expertise; Providing financial support; Providing technical capacity
          "Since 2013, Sumitomo Forestry has teamed up with the Japan International Cooperation Agency (JICA) to engage in forest management activities with Dien Bien Province in Vietnam, including forest conservation and planting of deforested areas. [...] As of fiscal 2019, we had reforested a total of approximately 28.8 hectares in six locations."
        • Risk assessments for forest risk
          Yes
          2/2
          Risk assessments for forest risk
          Yes
          2/2
          How frequently are assessments conducted?: Annually
          "Sumitomo Forestry Group established the Timber Procurement Committee, chaired by the general manager of the Sustainability Department and comprising managers from departments in charge of timber procurement for the trading and housing operations. (as of the end of March 2019). The committee discusses issues related to group-wide timber procurement, including procurement standards and risk assessments for illegal logging. [...] information sorted by country, region, wood species, and timber type, risk assessment on the illegal logging or human rights violation is carried out based on procurement standards stipulated by the Committee. Risk categories are A (low risk), B (medium risk) and C (high risk). Timber and wood products in the B (medium risk) and C (high risk) categories should not be solely evaluated with documentation to prove that they are legally harvested according to that countryʼs laws and regulations."
        • Operations assessed to comply with law
          Yes
          2/2
          Operations assessed to comply with law
          Yes
          2/2
          "With this information sorted by country, region, wood species, and timber type, risk assessment on illegal logging or human rights violation is carried out based on procurement standards stipulated by the committee. Risk categories are A (low risk), B (medium risk) and C (high risk). Timber and wood products in the B (medium risk) and C (high risk) categories should not be solely evaluated with documentation to prove that they are legally harvested according to that country’s laws and regulations. In addition, when necessary, company staff are sent for on-site inspections to ensure traceability back to the logging site."
        • Accessible grievance mechanism
          No
          0/4
        • Report volumes of commodity
          Reporting non-certified/non-compliant volume; Reporting certified/compliant volume
          4/4
          Report volumes of commodity
          Reporting non-certified/non-compliant volume; Reporting certified/compliant volume
          4/4
          What is the non-certified/non-compliant volume?: 1,708,960 m3

          What is the compliant volume?: 233,040 m3
          In their 2019 report, Sumitomo Forestry reported their total consumption of timber and woodchips as 1,942,000 m3, of which 12% was certified.
        • Upstream: Impact assessments for land development/acquisition
          Yes
          4/4
          Upstream: Impact assessments for land development/acquisition
          Yes
          4/4
          "All new business and project plans that are brought for deliberation to the Board of Directors and the Executive Committee, which is the advisory body to the president, Sumitomo Forestry conducts risk assessment for the following categories [...] Environmental Aspects 1. Greenhouse Gases 2. Biodiversity Conservation (Including Verification of Protected Regions) [...] Social Aspects 2. Anti-Corruption in All Its Forms, Including Extortion and Bribery. 3. Human Rights Considerations for Workers and Other Stakeholders [...] 8. Impact on Local Communities (Including Concern for Local Residents and Administrations, Industry Organizations, NPOs, Municipal Citizensʼ Groups and Indigenous People)"
        • Upstream: Reporting production/processing locations
          No disclosure
          0/4
          Upstream: Reporting production/processing locations
          No disclosure
          0/4
          What is the total area in production (in ha)?: 278,000 ha
        • Downstream: Publishing supplier lists
          No disclosure
          0/4
        • Upstream: Monitor compliance of production/processing
          Yes using an internal monitoring system
          4/4
          Upstream: Monitor compliance of production/processing
          Yes using an internal monitoring system
          4/4
          How frequently is compliance assessed?: Annually

          Does the company use a jurisdictional monitoring mechanism?: No

          Does the company use a certification system?: Yes
          in relation to the Sumitomo Forestry Group Environmental Policy which covers sites it owns and manages - "Make continual improvements to our environmental management system - We will accurately access environment-related risks associated with our business activities and with a mid-to-long-term outlook, set and work to fulfill yearly environment goals. In addition, we will regularly evaluate our environmental management system and make continual improvements "
        • Downstream: Monitor compliance in supply chain
          Yes for its suppliers only
          3/4
          Downstream: Monitor compliance in supply chain
          Yes for its suppliers only
          3/4
          How frequently is compliance assessed?: Not disclosed

          Details of monitoring: Using internal monitoring and verification systems
          "Risk categories are A (low risk), B (medium risk) and C (high risk). Timber and wood products in the B (medium risk) and C (high risk) categories should not be solely evaluated with documentation to prove that they are legally harvested according to that country’s laws and regulations. In addition, when necessary, company staff are sent for on-site inspections to ensure traceability back to the logging site. In fiscal 2019, we audited 33 companies in Category A, 30 companies in Category B, and 99 companies in Category C before terminating business transactions with 16 of those companies."
        • Downstream: Engagement with non-compliant suppliers
          Blacklist non-compliant suppliers without engagement
          1/2
          Downstream: Engagement with non-compliant suppliers
          Blacklist non-compliant suppliers without engagement
          1/2
          What criteria does the policy specify for blacklisting or exclusion?: Not disclosed

          Does the company engage non-compliant indirect suppliers in order to address and remedy non-compliance?: No

          What type of support does the company offer to its suppliers to help them achieve compliance with commitments?: Not disclosed
          "In fiscal 2019, we audited 33 companies in Category A, 30 companies in Category B, and 99 companies in Category C before terminating business transactions with 16 of those companies."
        • Downstream: Disclosure of non-compliant suppliers
          Yes (engaged); Yes (excluded)
          2/2
          Downstream: Disclosure of non-compliant suppliers
          Yes (engaged); Yes (excluded)
          2/2
          Does the company have a list of blacklisted or otherwise excluded suppliers or producers?: Not disclosed
          " In addition, when necessary, company staff are sent for on-site inspections to ensure traceability back to the logging site. In fiscal 2019, we audited 33 companies in Category A, 30 companies in Category B, and 99 companies in Category C before terminating business transactions with 16 of those companies"
    • Pulp & Paper *
      39/84
      • Commitment Strength
        21/28
        • Commitment to protect priority forests
          9/12
          • Commitment details
            Zero-gross deforestation
            6/8
            Commitment to protect priority forests
            Zero-gross deforestation
            6/8
            Which certification schemes are used?: FSC
            "In the 'Mid-Term Sustainability Targets as part of the 2021 Mid-Term Management Plan'� announced in May 2019 [...] we will promote the gradual increased use of alternative wood (natural timber from forest thinning or plantation timber) to stop the handling of items that do not fall under our definition of sustainable timber or wood products. By our target fiscal year of 2021, we strive to achieve our procurement goal of 100% sustainable timber and wood products [....] We define timber and wood products as sustainable if they fulfill one of the following: 1. Certified timber and pre-certified timber: FSC, PEFC, and SGEC (Regardless of CoC connection, we place emphasis on certification at time of production and promote a shift to certified timber)"
          • Commitment applies to all regions, suppliers and operation
            Yes
            2/2
            Commitment applies to all regions, suppliers and operation
            Yes
            2/2
            "In the “Mid-Term Sustainability Targets as part of the 2021 Mid-Term Management Plan” announced in May 2019 [...] we will promote the gradual increased use of alternative wood (natural timber from forest thinning or plantation timber) to stop the handling of items that do not fall under our definition of sustainable timber or wood products. By our target fiscal year of 2021, we strive to achieve our procurement goal of 100% sustainable timber and wood products [....] We define timber and wood products as sustainable if they fulfill one of the following: 1. Certified timber and pre-certified timber: FSC, PEFC, and SGEC (Regardless of CoC connection, we place emphasis on certification at time of production and promote a shift to certified timber)"
          • Target date
            2021
            1.2/1.3
            Target date
            2021
            1.2/1.3
            "In the “Mid-Term Sustainability Targets as part of the 2021 Mid-Term Management Plan” announced in May 2019 [...] we will promote the gradual increased use of alternative wood (natural timber from forest thinning or plantation timber) to stop the handling of items that do not fall under our definition of sustainable timber or wood products. By our target fiscal year of 2021, we strive to achieve our procurement goal of 100% sustainable timber and wood products [....] We define timber and wood products as sustainable if they fulfill one of the following: 1. Certified timber and pre-certified timber: FSC, PEFC, and SGEC (Regardless of CoC connection, we place emphasis on certification at time of production and promote a shift to certified timber)"
          • Interim target date
            No
            0/0.7
        • Commitment to reduce use of virgin wood fibre
          6/8
          • Commitment details
            Yes
            4/4
            Commitment to reduce use of virgin wood fibre
            Yes
            4/4
            Type of commitment: Recycled content
            "The Sumitomo Forestry Group contributes to resource recycling through its wood chip operations, whereby offcuts generated during the timber milling process and wood waste from new housing construction and demolition sites are turned into wood chips to be used as a raw material for products such as paper and particle board, and also as a fuel for power-generating boilers or other equipment."
          • Commitment applies to all regions, suppliers and operation
            Yes
            2/2
            Commitment applies to all regions, suppliers and operation
            Yes
            2/2
            "The Sumitomo Forestry Group contributes to resource recycling through its wood chip operations, whereby offcuts generated during the timber milling process and wood waste from new housing construction and demolition sites are turned into wood chips to be used as a raw material for products such as paper and particle board, and also as a fuel for power-generating boilers or other equipment."
          • Target date
            No target date
            0/1.3
            Target date
            No target date
            0/1.3
            "The Sumitomo Forestry Group contributes to resource recycling through its wood chip operations, whereby offcuts generated during the timber milling process and wood waste from new housing construction and demolition sites are turned into wood chips to be used as a raw material for products such as paper and particle board, and also as a fuel for power-generating boilers or other equipment."
          • Interim target date
            No
            0/0.7
            Interim target date
            No
            0/0.7
            "The Sumitomo Forestry Group contributes to resource recycling through its wood chip operations, whereby offcuts generated during the timber milling process and wood waste from new housing construction and demolition sites are turned into wood chips to be used as a raw material for products such as paper and particle board, and also as a fuel for power-generating boilers or other equipment."
        • Commitment to a traceable supply chain
          6/8
          • Commitment details
            Traces to Point of production
            4/4
            Commitment to a traceable supply chain
            Traces to Point of production
            4/4
            "Timber and wood products in the B (medium risk) and C (high risk) categories should not be solely evaluated with documentation to prove that they are legally harvested according to that country’s laws and regulations. In addition, when necessary, company staff are sent for on-site inspections to ensure traceability back to the logging site." " We formulated a procurement policy and set up a Timber Procurement Committee to confirm legality, traceability all the way to be the logging sites, and sustainability"
          • Commitment applies to all regions, suppliers and operation
            Yes
            2/2
            Commitment applies to all regions, suppliers and operation
            Yes
            2/2
            "Timber and wood products in the B (medium risk) and C (high risk) categories should not be solely evaluated with documentation to prove that they are legally harvested according to that country’s laws and regulations. In addition, when necessary, company staff are sent for on-site inspections to ensure traceability back to the logging site." " We formulated a procurement policy and set up a Timber Procurement Committee to confirm legality, traceability all the way to be the logging sites, and sustainability"
          • Target date
            No target date
            0/1.3
            Target date
            No target date
            0/1.3
            "Timber and wood products in the B (medium risk) and C (high risk) categories should not be solely evaluated with documentation to prove that they are legally harvested according to that country’s laws and regulations. In addition, when necessary, company staff are sent for on-site inspections to ensure traceability back to the logging site." " We formulated a procurement policy and set up a Timber Procurement Committee to confirm legality, traceability all the way to be the logging sites, and sustainability"
          • Interim target date
            No
            0/0.7
      • Social Considerations
        7/18
        • Labour rights in the supply chain
          Yes
          4/4
          Labour rights in the supply chain
          Yes
          4/4
          Details of commitment: Discrimination; Forced Labour; Child Labour; Freedom of association
          "Based on its Corporate Philosophy and Our Values, the Sumitomo Forestry Group shall manage its operations, including the supply chain, in accordance with this Code of Conduct. [...] Discrimination[...] Forced Labour[...] Child Labour[...] Freedom of association"
        • Inclusion of small-scale farmers
          No
          0/4
        • Gender equality in the supply chain
          Discrimination/Gender Rights/Harassment
          1/4
          Gender equality in the supply chain
          Discrimination/Gender Rights/Harassment
          1/4
          "Based on its Corporate Philosophy and Our Values, the Sumitomo Forestry Group shall manage its operations, including the supply chain, in accordance with this Code of Conduct. [...] Prohibition of discrimination and the promotion of diversityWe shall not discriminate on the basis of race, ethnicity, nationality, gender, religion, ideology, disability, sexual orientation, gender identity or other. In addition, we shall work to secure and promote diversity."
        • Commitment to remediation
          No
          0/2
        • Commitment to ensure Free, Prior and Informed Consent
          Yes the company commits to securing FPIC prior to acquiring new interests/developments/expansions
          2/4
          Commitment to ensure Free, Prior and Informed Consent
          Yes the company commits to securing FPIC prior to acquiring new interests/developments/expansions
          2/4
          "We operate under the following philosophy when obtaining new forests in our overseas forestry business. 1. To build good relationships with surrounding villages and local communities. 2. The major presumption is that HCVA*1, HCSA*2 and FPIC*3 are to be implemented. It is also possible to eliminate environmental risk, and there must be no identified past environmental problems"
      • Reporting and Implementation
        11/38
        • Reporting against commitments
          4/6
          • Commitment to protect priority forests
            Yes
            2/2
            Commitment to protect priority forests
            Yes
            2/2
            Sumitomo Forestry reports on the FSC status of each site - "Status of Sumitomo Forestry Group Forest Certification/ CoC Certification*1 (FSC) [...] Sumitomo Forestry Group has obtained FM certification for 221,000 hectares and CoC certification for 10 organizations."
          • Commitment to reduce use of virgin wood fibre
            Yes
            2/2
            Commitment to reduce use of virgin wood fibre
            Yes
            2/2
            Does the company report on the degree of compliance/progress with commitments, disaggregated by relevant factors such as origin or supply chain stage?: No
            In 2017, 1,179 tonnes of waste wood materials was recycled into other materials, of which 168 tonnes were recycled into paper or other pulp materials.
          • Commitment to a traceable supply chain
            No
            0/2
        • Reporting is independently verified
          1/4
          • Commitment to protect priority forests
            Yes: third-party
            1.3/1.3
            Commitment to protect priority forests
            Yes: third-party
            1.3/1.3
            Which tools, approaches, third-party verification, including certification, schemes are used?: FSC Certification

            Which processes or groups does the company use for third party verification?: FSC Certification
            "In the “Mid-Term Sustainability Targets as part of the 2021 Mid-Term Management Plan” announced in May 2019 [...] we will promote the gradual increased use of alternative wood (natural timber from forest thinning or plantation timber) to stop the handling of items that do not fall under our definition of sustainable timber or wood products. By our target fiscal year of 2021, we strive to achieve our procurement goal of 100% sustainable timber and wood products [....] We define timber and wood products as sustainable if they fulfill one of the following: 1. Certified timber and pre-certified timber: FSC, PEFC, and SGEC (Regardless of CoC connection, we place emphasis on certification at time of production and promote a shift to certified timber)"
          • Commitment to reduce use of virgin wood fibre
            No
            0/1.3
            Commitment to reduce use of virgin wood fibre
            No
            0/1.3
            Which tools, approaches, third-party verification, including certification, schemes are used?: External verification
          • Commitment to a traceable supply chain
            No
            0/1.3
        • Deforestation cut off date
          No
          0/2
        • Collaborative actions
          No
          0/2
        • Risk assessments for forest risk
          Yes
          2/2
          Risk assessments for forest risk
          Yes
          2/2
          How frequently are assessments conducted?: Annually
          "Sumitomo Forestry Group established the Timber Procurement Committee, chaired by the general manager of the Sustainability Department and comprising managers from departments in charge of timber procurement for the trading and housing operations. (as of the end of March 2019). The committee discusses issues related to group-wide timber procurement, including procurement standards and risk assessments for illegal logging. [...] information sorted by country, region, wood species, and timber type, risk assessment on the illegal logging or human rights violation is carried out based on procurement standards stipulated by the Committee. Risk categories are A (low risk), B (medium risk) and C (high risk). Timber and wood products in the B (medium risk) and C (high risk) categories should not be solely evaluated with documentation to prove that they are legally harvested according to that countryʼs laws and regulations."
        • Operations assessed to comply with law
          Yes
          2/2
          Operations assessed to comply with law
          Yes
          2/2
          "With this information sorted by country, region, wood species, and timber type, risk assessment on illegal logging or human rights violation is carried out based on procurement standards stipulated by the committee. Risk categories are A (low risk), B (medium risk) and C (high risk). Timber and wood products in the B (medium risk) and C (high risk) categories should not be solely evaluated with documentation to prove that they are legally harvested according to that country’s laws and regulations. In addition, when necessary, company staff are sent for on-site inspections to ensure traceability back to the logging site."
        • Accessible grievance mechanism
          No
          0/4
        • Report volumes of commodity
          No reporting
          0/4
        • Downstream: Publishing supplier lists
          No disclosure
          0/4
        • Downstream: Monitor compliance in supply chain
          Yes for its suppliers only
          3/4
          Downstream: Monitor compliance in supply chain
          Yes for its suppliers only
          3/4
          How frequently is compliance assessed?: Not disclosed

          Details of monitoring: Using internal monitoring and verification systems
          "Risk categories are A (low risk), B (medium risk) and C (high risk). Timber and wood products in the B (medium risk) and C (high risk) categories should not be solely evaluated with documentation to prove that they are legally harvested according to that country’s laws and regulations. In addition, when necessary, company staff are sent for on-site inspections to ensure traceability back to the logging site. In fiscal 2019, we audited 33 companies in Category A, 30 companies in Category B, and 99 companies in Category C before terminating business transactions with 16 of those companies."
        • Downstream: Engagement with non-compliant suppliers
          Blacklist non-compliant suppliers without engagement
          1/2
          Downstream: Engagement with non-compliant suppliers
          Blacklist non-compliant suppliers without engagement
          1/2
          What criteria does the policy specify for blacklisting or exclusion?: Not disclosed

          Does the company engage non-compliant indirect suppliers in order to address and remedy non-compliance?: No

          What type of support does the company offer to its suppliers to help them achieve compliance with commitments?: Not disclosed
          "In fiscal 2019, we audited 33 companies in Category A, 30 companies in Category B, and 99 companies in Category C before terminating business transactions with 16 of those companies."
        • Downstream: Disclosure of non-compliant suppliers
          Yes (engaged); Yes (excluded)
          2/2
          Downstream: Disclosure of non-compliant suppliers
          Yes (engaged); Yes (excluded)
          2/2
          Does the company have a list of blacklisted or otherwise excluded suppliers or producers?: Not disclosed
          " In addition, when necessary, company staff are sent for on-site inspections to ensure traceability back to the logging site. In fiscal 2019, we audited 33 companies in Category A, 30 companies in Category B, and 99 companies in Category C before terminating business transactions with 16 of those companies"
  • * commodity scores for which a company is not a powerbroker are given half the weighting of other commodities in total scores

  • Commitment strength
    21/28
    Avg. score
  • Reporting and Implementation
    15/38
    Avg. score
  • Social considerations
    7/18
    Avg. score

Profile

Sumitomo Forestry Co. Ltd, is a timber company with operations in forestry, processing, materials provision and construction. The company is one of the world’s largest forestry companies and has subsidiaries operating across East and Southeast Asia, Oceania and North America. Sumitomo Forestry is selected as a powerbroker for timber and paper packaging.

Sector
Industry sector 
Construction, Forestry
Segments
Trader, Processor, Manufacturer, Retailer
HQ
HQ 
Japan
Company Type
Company type 
Public listed
Collective Commitments
Consumer Goods Forum member
New York Declaration on Forests signatory

How we assess the Forest 500

To ensure deforestation free supply chains, companies need to adopt and implement timebound and measurable policies for forest risk commodities.

All assessments use policies published on company websites, some links may have changed or been removed since the time of assessment.

Disclaimer

This assessment has been carried out following the methodology developed for the Forest 500 project, available here. Please see our disclaimer applicable to all information contained within this site and our terms and conditions for use of data presented on this site.

All assessments use policies published on company and financial institution websites, and while we endeavor to keep them updated some links may have changed or been removed since the time of assessment.

Please contact us with any concerns or feedback about this or other assessments included in the Forest 500.