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  • Overall approach
    4/12
    • Overarching commitment on deforestation
      0/4
    • Signatory to an initiative tackling deforestation
      1/1
      Yes
      1/1
      Which initiatives?: World Business Council for Sustainable Development Forest Solutions Group; UN Global Compact
      "Sumitomo Forestry has been a member of the WBCSD* since January 2020.We advance efforts to resolve social issues through business to contribute to the SDGs and build a sustainable society. [...]  In December 2008, Sumitomo Forestry formally signed the United Nations (UN) Global Compact to declare our support for its principles."
    • Awareness of the value of forests
      1/1
      Yes
      1/1
      "In May 2019, we formulated an action plan to redefine the meaning of “sustainable timber and timber products” in light of growing concerns about deforestation as a factor of climate change since 2015"
    • Deforestation as a business risk
      1/1
      Yes
      1/1
      Does the company recognise the risk as financial, operational, competition, reputational, or other? Please detail.: All 
      "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
      Yes
      1/1
      How often does the committee or board meet to assess company's progress on addressing deforestation-related issues?: Twice annually

      Which commodities does it apply to?: Timber; Pulp & Paper
      "The General Manager of Sustainability Department under the President (CEO) acts as the Environmental Management Officer to raise the effectiveness of environmental activities by drafting a Sustainability Budget as a quantitative targets for each fiscal year for environmental activities that each department of the Group is advancing and regularly checks in with the Sustainability Committee [...]  Each group company and department has set “Sustainability Budget” with numerical targets set for the fiscal year and engaging in initiatives to achieving these goals. The Sumitomo Forestry Group fully implements a PDCA cycle for the progress and achievements of each target at the Sustainability Committee convened two times a year in addition to providing reports to the Board of Directors. [...] The Sumitomo Forestry Group strives to conduct procurement activities while making considerations about human rights and labor in all timber and wood products verified to be sustainably and legally compliant as well as conserve biodiversity and contribute to the local community. The progress of these initiatives is reported to the Timber Procurement Committee made up of managers from each section procuring timber to encourage continued improvements in the supply chain."
    • Executive compensation linked to deforestation
    • Target to reduce emissions from land-use change
      0/2
    • Reporting on emissions from land-use change
      0/2
    • Disclosure of conservation activity
    • Disclosure of reforestation activity
    • Target to reduce emissions in scope 1/2
      Yes
      0/0
      What is the target date for the company to achieve their climate target?: 2030

      Type of climate target: Other or unclear
      "The Sumitomo Forestry Group has announced the formulation of SBTi*1 and set new greenhouse gases reduction target for the entire Group in June 2017 and was certified as SBT in July 2018. 1. Scope 1&2*2: 21% reduction of greenhouse gas emissions compared to 2017 (base year) by 2030. 2. Scope 3*2: 16% reduction of total greenhouse gas emissions from Category 1 and Category 11*3 compared to 2017 (base year) by 2030."
  • Commodity score
    47/88
    • Timber
      49/88
      • Commitment Strength
        11/20
        • Commitment to protect priority forests
          6/11
          • Commitment details
            Credible certification scheme
            2.7/8
            Commitment to protect priority forests
            Credible certification scheme
            2.7/8
            Which certification schemes are used?: FSC; PEFC
            Sumitomo lists out various targets for the different divisions of wood but that their overarching commitment for wood procurement is as follows - "Percentage of sustainable timber and timber products handled FY2021 target 100% [...] 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) 2) Timber from plantation forests, 3) Natural timber where forestry management and distribution can be assessed as sustainable. (this does not include timber from conversion forests = timber harvested from natural forests that were converted to farm land such as oil palm plantations) 4) Recycled wood [...] The percentage of sustainable timber and timber products handled in fiscal 2020 showed a favorable shift upward to 94.6% against our target of 93.0%. We aim to reach 100% procurement of sustainable timber and timber products in fiscal 2021"
          • Commitment applies to all regions, suppliers and operation
            Yes
            2/2
            Commitment applies to all regions, suppliers and operation
            Yes
            2/2
            Sumitomo lists out various targets for the different divisions of wood but that their overarching commitment for wood procurement is as follows - "Percentage of sustainable timber and timber products handled FY2021 target 100% [...] 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) 2) Timber from plantation forests, 3) Natural timber where forestry management and distribution can be assessed as sustainable. (this does not include timber from conversion forests = timber harvested from natural forests that were converted to farm land such as oil palm plantations) 4) Recycled wood [...] The percentage of sustainable timber and timber products handled in fiscal 2020 showed a favorable shift upward to 94.6% against our target of 93.0%. We aim to reach 100% procurement of sustainable timber and timber products in fiscal 2021"
          • Target date
            2021
            1/1
            Target date
            2021
            1/1
            Sumitomo lists out various targets for the different divisions of wood but that their overarching commitment for wood procurement is as follows - "Percentage of sustainable timber and timber products handled FY2021 target 100% [...] 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) 2) Timber from plantation forests, 3) Natural timber where forestry management and distribution can be assessed as sustainable. (this does not include timber from conversion forests = timber harvested from natural forests that were converted to farm land such as oil palm plantations) 4) Recycled wood [...] The percentage of sustainable timber and timber products handled in fiscal 2020 showed a favorable shift upward to 94.6% against our target of 93.0%. We aim to reach 100% procurement of sustainable timber and timber products in fiscal 2021"
          • Interim target date
            No
            0/0.5
        • Commitment to a traceable supply chain
          7/9
          • 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
            "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 2020, we audited 13 companies in Category A, 18 companies in Category B, and 107 companies in Category C."
          • Commitment applies to all regions, suppliers and operation
            Yes
            2/2
            Commitment applies to all regions, suppliers and operation
            Yes
            2/2
            "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 2020, we audited 13 companies in Category A, 18 companies in Category B, and 107 companies in Category C."
          • Target date
            No target date
            0/1
            Target date
            No target date
            0/1
            "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 2020, we audited 13 companies in Category A, 18 companies in Category B, and 107 companies in Category C."
          • Interim target date
            No
            0/0.5
      • Social Considerations
        9/18
        • 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
          Commitment to address gender related labour rights including discrimination and harassment
          1/4
          Gender equality in the supply chain
          Commitment to address gender related labour rights including discrimination and 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 diversity. We 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, or expansions
          4/4
          Commitment to ensure Free, Prior and Informed Consent
          Yes, the company commits to securing FPIC prior to acquiring new interests, developments, or expansions
          4/4
          As for the overseas forestry acquisition, below are the guiding principles for selection when obtaining new forests areas. 1) Forests areas that have good relationships with surrounding villages and local communities. 2) Forest areas where HCVA*1, HCSA*2 and FPIC*3 can be implemented, no environmental problems were identified in the past, and environmental risks can be eliminated. [...] 3 Free Prior Informed Consent: Prior sharing of information and consensus formation with indigenous people and others in cases where there is likelihood that operations could impact the lands, territories or resources of indigenous people"
        • Commitment to resolve land conflicts
          Yes
          Commitment to resolve land conflicts
          Yes
          0/0
          "Sumitomo Forestry Group is conducting fair and responsible procurement under the Sumitomo Forestry Group Procurement Policy which obligates suppliers to protect human rights and basic rights of labor as well as preventing corruption. For procurement of high-risk imported materials, specifically, the Group conducts sustainability surveys of all, more than two hundreds, suppliers in two years. The surveys aim to ensure whether rights of workers and local communities in the areas where raw materials of the supplies are procured from, have not been violated; if the risk identified, then whether adequate consideration for these rights during logging is inspected. The Group also engages in on-site inspection and interviews with any suppliers which measures to mitigate risks was deemed necessary based on the risk categories. [...] We identified important risks as follows: The Environment and Resources Division - “Infringing indigenous or community land rights and managing related laws” [...] “Infringing indigenous land rights"
      • Reporting and Implementation
        27/50
        • Reporting against commitments
          1/3
          • Commitment to protect priority forests
            Yes, for all commodity exposure
            2.5/2.5
            Commitment to protect priority forests
            Yes, for all commodity exposure
            2.5/2.5
            "The percentage of sustainable timber and timber products handled in fiscal 2020 showed a favorable shift upward to 94.6% against our target of 93.0%. We aim to reach 100% procurement of sustainable timber and timber products in fiscal 2021" [...] "Sumitomo Forestry Group has obtained FM certification (forestry certification system) for 221,000 hectares and CoC certification for 9 organizations."
          • Commitment to a traceable supply chain
            Yes, for partial or unclear commodity exposure
            1.3/2.5
            Commitment to a traceable supply chain
            Yes, for partial or unclear commodity exposure
            1.3/2.5
            "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 2020, we audited 13 companies in Category A, 18 companies in Category B, and 107 companies in Category C."
        • Reporting is independently verified
          2/2
          • Commitment to protect priority forests
            Yes, using a third-party verification scheme or certification scheme.
            1.5/1.5
            Commitment to protect priority forests
            Yes, using a third-party verification scheme or certification scheme.
            1.5/1.5
            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
            "The percentage of sustainable timber and timber products handled in fiscal 2020 showed a favorable shift upward to 94.6% against our target of 93.0%. We aim to reach 100% procurement of sustainable timber and timber products in fiscal 2021" [...] "Sumitomo Forestry Group has obtained FM certification (forestry certification system) for 221,000 hectares and CoC certification for 9 organizations."
          • Commitment to a traceable supply chain
            Yes, using an internal verification system.
            0.8/1.5
            Commitment to a traceable supply chain
            Yes, using an internal verification system.
            0.8/1.5
            Which tools, approaches, third-party verification, including certification, schemes are used?: Auditing

            Which processes or groups does the company use for third party verification?: Auditing
            "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 2020, we audited 13 companies in Category A, 18 companies in Category B, and 107 companies in Category C."
        • Suppliers aligned with deforestation commitments across supply chain
          No
          0/2
        • Deforestation cut off date
          No
          0/2
        • Collaborative actions
          Yes
          2/2
          Collaborative actions
          Yes
          2/2
          What is the nature of that participation?: Providing support/advice/experience/expertise; Providing financial support; Providing technical capacity

          What initiatives does the company participate in?:  forest management activities with Dien Bien Province in Vietnam
          "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 [...] This project ended in fiscal 2020, and we supported it for approximately seven years. Our work, such as providing a total of roughly 45,000 seedlings to the local people, contributed to the revitalization and conservation of forests in the region, including about 29 ha of reforestation across six sites."
        • Risk assessments for forest risk
          Yes
          2/2
          Risk assessments for forest risk
          Yes
          2/2
          How frequently are assessments conducted?: Annually by the Timber Procurement Committee
          As for the overseas forestry acquisition, below are the guiding principles for selection when obtaining new forests areas. Forest areas where HCVA*1, HCSA*2 and FPIC*3 can be implemented, no environmental problems were identified in the past, and environmental risks can be eliminated." [...] For domestic wood - "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 total volume
          2/2
          Report volumes of commodity
          Reporting total volume
          2/2
          Total/partial volume reported: 1,465,901 M3
          In 2020 221,644 M3 of the domestic and overseas certified forest areas were certified.  out of a total of 1,465,901 M3 of volume of woodchip and pellets. 1,465,901tons of woodchip were used in 2020 (which equates to 15% certification)
        • Report verified volumes of commodity
          1-49%
          2/6
          Report verified volumes of commodity
          1-49%
          2/6
          For what percent of the company's supply volume is third-party verification of performance relative to commitments conducted?: 15%

          What is the certified volume?: 221,644 M3

          What third-party verification is used?: FSC, PEFC
          In 2020 221,644 M3 of the domestic and overseas certified forest areas were certified.  out of a total of 1,465,901 M3 of volume of woodchip and pellets. 1,465,901tons of woodchip were used in 2020 (which equates to 15% certification)
        • Upstream: Monitor compliance with human rights
          Yes, commit to monitoring compliance with labour/worker rights; Yes, company discloses how many land developments or site acquisitions, by either itself or its suppliers, indicated the use of FPIC to secure consent of indigenous peoples/local communities
          4/4
          Upstream: Monitor compliance with human rights
          Yes, commit to monitoring compliance with labour/worker rights; Yes, company discloses how many land developments or site acquisitions, by either itself or its suppliers, indicated the use of FPIC to secure consent of indigenous peoples/local communities
          4/4
          "Sumitomo Forestry Group is conducting fair and responsible procurement under the Sumitomo Forestry Group Procurement Policy which obligates suppliers to protect human rights and basic rights of labor as well as preventing corruption. For procurement of high-risk imported materials, specifically, the Group conducts sustainability surveys of all, more than two hundreds, suppliers in two years. The surveys aim to ensure whether rights of workers and local communities in the areas where raw materials of the supplies are procured from, have not been violated; if the risk identified, then whether adequate consideration for these rights during logging is inspected. The Group also engages in on-site inspection and interviews with any suppliers which measures to mitigate risks was deemed necessary based on the risk categories. " - includes FPIC and labour laws
        • Upstream: Impact assessments for land development/acquisition
          Yes
          4/4
          Upstream: Impact assessments for land development/acquisition
          Yes
          4/4
          How does the company remedy adverse social and environmental impacts linked to their operations and/or supply chains?: 0 not disclosed
          "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, taking into account the entire supply chain [...] 2. Biodiversity Conservation (Including Verification of Protected Regions) [...] Human Rights Considerations for Workers and Other Stakeholder [...] Impact on Local Communities (Including Concern for Local Residents and Administrations, Industry Organizations, NPOs, Municipal Citizens' Groups and Indigenous People) [...] In overseas development, for example, we first select the land to develop and then outsource soil and environmental surveys to external research firms to fully understand the risks from an objective standpoint. We not only ask local affiliated companies to give their input on risks but the Sumitomo Forestry head office also conducts property inspections and environmental and social impact studies using its own CSR risk assessment sheet for projects larger than a certain scale"
        • Upstream: Reporting production/processing locations
          No disclosure
          0/4
        • Downstream: Publishing supplier lists
          No
          0/4
        • Upstream: Monitor compliance of production/processing
          Yes, using an internal verification system
          4/4
          Upstream: Monitor compliance of production/processing
          Yes, using an internal verification system
          4/4
          Does the company use a jurisdictional monitoring mechanism?: No

          Does the company use a certification system?: Yes

          How frequently is compliance assessed?: Annually
          "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"
        • Upstream: Reporting hectares of deforestation
          No
          0/4
        • Downstream: Monitor compliance in supply chain
          Yes, for its suppliers
          3/4
          Downstream: Monitor compliance in supply chain
          Yes, for its suppliers
          3/4
          Details of monitoring: Using internal monitoring and verification systems

          How frequently is compliance assessed?: Annually
          "Timber & Building Materials Business, Housing & Construction Business and each of timber procurement division at each Group company confirm that the timber provided by suppliers has been legally harvested, or that the wood products they provide have been made only from legally harvested timber as a raw material. Each person in charge of procurement is required to follow the Timber Procurement Due Diligence Manual, gather the following information, cross-check relevant documents for each location and tree species, and confirm traceability of the entire supply chain all the way to the logging site. [...] With these information sorted by country, region, tree 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 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. "
        • Downstream: Reporting hectares of deforestation
          No
          0/4
        • Downstream: Engagement with non-compliant suppliers
          Engage with suppliers but with no time-bound threat of exclusion
          1/2
          Downstream: Engagement with non-compliant suppliers
          Engage with suppliers but with no time-bound threat of exclusion
          1/2
          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 specified
          "The Timber Procurement Committee convened four times in fiscal 2020 led by the director and managing executive officer in charge of sustainability [...] This committee receive reports on results from local interviews and the Sustainability Procurement Survey, including the level of supplier compliance awareness, and requires corrective actions to rectify any supplier issues found.[...] Through the surveys, we were able to confirm that many suppliers share our own understanding of what responsible procurement means. On the other hand, some suppliers fell short of our expectations and after discussions at our supplier evaluation meetings, we provided feedback, which we will continue to follow up on to ensure ongoing improvement"
        • Downstream: Disclosure of non-compliant suppliers
          Yes, excluded
          1/2
          Downstream: Disclosure of non-compliant suppliers
          Yes, excluded
          1/2
          Does the company have a list of blacklisted or otherwise excluded suppliers or producers?: No
          "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."
    • Pulp & Paper *
      44/88
      • Commitment Strength
        14/20
        • Commitment to protect priority forests
          4/8
          • Commitment details
            Credible certification scheme
            2/6
            Commitment to protect priority forests
            Credible certification scheme
            2/6
            Which certification schemes are used?: FSC; PEFC
            Sumitomo lists out various targets for the different divisions of wood but that their overarching commitment for wood procurement is as follows - "Percentage of sustainable timber and timber products handled FY2021 target 100% [...] 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) 2) Timber from plantation forests, 3) Natural timber where forestry management and distribution can be assessed as sustainable. (this does not include timber from conversion forests = timber harvested from natural forests that were converted to farm land such as oil palm plantations) 4) Recycled wood [...] The percentage of sustainable timber and timber products handled in fiscal 2020 showed a favorable shift upward to 94.6% against our target of 93.0%. We aim to reach 100% procurement of sustainable timber and timber products in fiscal 2021"
          • Commitment applies to all regions, suppliers and operation
            Yes
            1.3/1.3
            Commitment applies to all regions, suppliers and operation
            Yes
            1.3/1.3
            Sumitomo lists out various targets for the different divisions of wood but that their overarching commitment for wood procurement is as follows - "Percentage of sustainable timber and timber products handled FY2021 target 100% [...] 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) 2) Timber from plantation forests, 3) Natural timber where forestry management and distribution can be assessed as sustainable. (this does not include timber from conversion forests = timber harvested from natural forests that were converted to farm land such as oil palm plantations) 4) Recycled wood [...] The percentage of sustainable timber and timber products handled in fiscal 2020 showed a favorable shift upward to 94.6% against our target of 93.0%. We aim to reach 100% procurement of sustainable timber and timber products in fiscal 2021"
          • Target date
            2021
            0.7/0.7
            Target date
            2021
            0.7/0.7
            Sumitomo lists out various targets for the different divisions of wood but that their overarching commitment for wood procurement is as follows - "Percentage of sustainable timber and timber products handled FY2021 target 100% [...] 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) 2) Timber from plantation forests, 3) Natural timber where forestry management and distribution can be assessed as sustainable. (this does not include timber from conversion forests = timber harvested from natural forests that were converted to farm land such as oil palm plantations) 4) Recycled wood [...] The percentage of sustainable timber and timber products handled in fiscal 2020 showed a favorable shift upward to 94.6% against our target of 93.0%. We aim to reach 100% procurement of sustainable timber and timber products in fiscal 2021"
          • Interim target date
            No
            0/0.3
        • Commitment to reduce use of virgin wood fibre
          4/5
          • Commitment details
            Yes
            3/3
            Commitment to reduce use of virgin wood fibre
            Yes
            3/3
            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
            1.3/1.3
            Commitment applies to all regions, suppliers and operation
            Yes
            1.3/1.3
            "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."
          • Target date
            No target date
            0/0.7
            Target date
            No target date
            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."
          • Interim target date
            No
            0/0.3
            Interim target date
            No
            0/0.3
            "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."
        • Commitment to a traceable supply chain
          5/6
          • Commitment details
            Traces to Point of production
            4/4
            Commitment to a traceable supply chain
            Traces to Point of production
            4/4
            "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 2020, we audited 13 companies in Category A, 18 companies in Category B, and 107 companies in Category C."
          • Commitment applies to all regions, suppliers and operation
            Yes
            1.3/1.3
            Commitment applies to all regions, suppliers and operation
            Yes
            1.3/1.3
            "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 2020, we audited 13 companies in Category A, 18 companies in Category B, and 107 companies in Category C."
          • Target date
            No target date
            0/0.7
          • Interim target date
            No
            0/0.3
      • Social Considerations
        9/18
        • 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
          Commitment to address gender related labour rights including discrimination and harassment
          1/4
          Gender equality in the supply chain
          Commitment to address gender related labour rights including discrimination and 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 diversity. We 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, or expansions
          4/4
          Commitment to ensure Free, Prior and Informed Consent
          Yes, the company commits to securing FPIC prior to acquiring new interests, developments, or expansions
          4/4
          "As for the overseas forestry acquisition, below are the guiding principles for selection when obtaining new forests areas. 1) Forests areas that have good relationships with surrounding villages and local communities. 2) Forest areas where HCVA*1, HCSA*2 and FPIC*3 can be implemented, no environmental problems were identified in the past, and environmental risks can be eliminated. [...] 3 Free Prior Informed Consent: Prior sharing of information and consensus formation with indigenous people and others in cases where there is likelihood that operations could impact the lands, territories or resources of indigenous people"
        • Commitment to resolve land conflicts
          Yes
          Commitment to resolve land conflicts
          Yes
          0/0
          "Sumitomo Forestry Group is conducting fair and responsible procurement under the Sumitomo Forestry Group Procurement Policy which obligates suppliers to protect human rights and basic rights of labor as well as preventing corruption. For procurement of high-risk imported materials, specifically, the Group conducts sustainability surveys of all, more than two hundreds, suppliers in two years. The surveys aim to ensure whether rights of workers and local communities in the areas where raw materials of the supplies are procured from, have not been violated; if the risk identified, then whether adequate consideration for these rights during logging is inspected. The Group also engages in on-site inspection and interviews with any suppliers which measures to mitigate risks was deemed necessary based on the risk categories. [...] We identified important risks as follows: The Environment and Resources Division - “Infringing indigenous or community land rights and managing related laws” [...] “Infringing indigenous land rights"
      • Reporting and Implementation
        21/50
        • Reporting against commitments
          1/2
          • Commitment to protect priority forests
            Yes, for all commodity exposure
            1.7/1.7
            Commitment to protect priority forests
            Yes, for all commodity exposure
            1.7/1.7
            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
            No
            0/1.7
          • Commitment to a traceable supply chain
            Yes, for partial or unclear commodity exposure
            0.8/1.7
            Commitment to a traceable supply chain
            Yes, for partial or unclear commodity exposure
            0.8/1.7
            "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 2020, we audited 13 companies in Category A, 18 companies in Category B, and 107 companies in Category C."
        • Reporting is independently verified
          1/1
          • Commitment to protect priority forests
            Yes, using a third-party verification scheme or certification scheme.
            1/1
            Commitment to protect priority forests
            Yes, using a third-party verification scheme or certification scheme.
            1/1
            Which processes or groups does the company use for third party verification?: FSC

            Which tools, approaches, third-party verification, including certification, schemes are used?: FSC
            Sumitomo lists out various targets for the different divisions of wood but that their overarching commitment for wood procurement is as follows - "Percentage of sustainable timber and timber products handled FY2021 target 100% [...] 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) 2) Timber from plantation forests, 3) Natural timber where forestry management and distribution can be assessed as sustainable. (this does not include timber from conversion forests = timber harvested from natural forests that were converted to farm land such as oil palm plantations) 4) Recycled wood [...] The percentage of sustainable timber and timber products handled in fiscal 2020 showed a favorable shift upward to 94.6% against our target of 93.0%. We aim to reach 100% procurement of sustainable timber and timber products in fiscal 2021"
          • Commitment to reduce use of virgin wood fibre
            No
            0/1
          • Commitment to a traceable supply chain
            Yes, using an internal verification system.
            0.5/1
            Commitment to a traceable supply chain
            Yes, using an internal verification system.
            0.5/1
            Which tools, approaches, third-party verification, including certification, schemes are used?: Auditing
            "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 2020, we audited 13 companies in Category A, 18 companies in Category B, and 107 companies in Category C."
        • Suppliers aligned with deforestation commitments across supply chain
          No
          0/2
        • 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 
          As for the overseas forestry acquisition, below are the guiding principles for selection when obtaining new forests areas. Forest areas where HCVA*1, HCSA*2 and FPIC*3 can be implemented, no environmental problems were identified in the past, and environmental risks can be eliminated." [...] For domestic wood - "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
          0/2
        • Report verified volumes of commodity
          80-99%
          4/6
          Report verified volumes of commodity
          80-99%
          4/6
          For what percent of the company's supply volume is third-party verification of performance relative to commitments conducted?: 94.6%
          "The percentage of sustainable timber and timber products handled in fiscal 2020 showed a favorable shift upward to 94.6% against our target of 93.0%"
        • Upstream: Monitor compliance with human rights
          Yes, commit to monitoring compliance with labour/worker rights; Yes, company discloses how many land developments or site acquisitions, by either itself or its suppliers, indicated the use of FPIC to secure consent of indigenous peoples/local communities
          4/4
          Upstream: Monitor compliance with human rights
          Yes, commit to monitoring compliance with labour/worker rights; Yes, company discloses how many land developments or site acquisitions, by either itself or its suppliers, indicated the use of FPIC to secure consent of indigenous peoples/local communities
          4/4
          "Sumitomo Forestry Group is conducting fair and responsible procurement under the Sumitomo Forestry Group Procurement Policy which obligates suppliers to protect human rights and basic rights of labor as well as preventing corruption. For procurement of high-risk imported materials, specifically, the Group conducts sustainability surveys of all, more than two hundreds, suppliers in two years. The surveys aim to ensure whether rights of workers and local communities in the areas where raw materials of the supplies are procured from, have not been violated; if the risk identified, then whether adequate consideration for these rights during logging is inspected. The Group also engages in on-site inspection and interviews with any suppliers which measures to mitigate risks was deemed necessary based on the risk categories. " - includes FPIC and labour laws
        • Downstream: Publishing supplier lists
          No
          0/4
        • Downstream: Monitor compliance in supply chain
          Yes, for its suppliers
          3/4
          Downstream: Monitor compliance in supply chain
          Yes, for its suppliers
          3/4
          Details of monitoring: Using internal monitoring and verification systems

          How frequently is compliance assessed?: Annually 
          "Timber & Building Materials Business, Housing & Construction Business and each of timber procurement division at each Group company confirm that the timber provided by suppliers has been legally harvested, or that the wood products they provide have been made only from legally harvested timber as a raw material. Each person in charge of procurement is required to follow the Timber Procurement Due Diligence Manual, gather the following information, cross-check relevant documents for each location and tree species, and confirm traceability of the entire supply chain all the way to the logging site. [...] With these information sorted by country, region, tree 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 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. "
        • Downstream: Reporting hectares of deforestation
          No
          0/4
        • Downstream: Engagement with non-compliant suppliers
          Engage with suppliers but with no time-bound threat of exclusion
          1/2
          Downstream: Engagement with non-compliant suppliers
          Engage with suppliers but with no time-bound threat of exclusion
          1/2
          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 specified 
          "The Timber Procurement Committee convened four times in fiscal 2020 led by the director and managing executive officer in charge of sustainability [...] This committee receive reports on results from local interviews and the Sustainability Procurement Survey, including the level of supplier compliance awareness, and requires corrective actions to rectify any supplier issues found.[...] Through the surveys, we were able to confirm that many suppliers share our own understanding of what responsible procurement means. On the other hand, some suppliers fell short of our expectations and after discussions at our supplier evaluation meetings, we provided feedback, which we will continue to follow up on to ensure ongoing improvement"
        • Downstream: Disclosure of non-compliant suppliers
          Yes, excluded
          1/2
          Downstream: Disclosure of non-compliant suppliers
          Yes, excluded
          1/2
          Does the company have a list of blacklisted or otherwise excluded suppliers or producers?: Not disclosed 
          "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."
  • * commodity scores for which a company is not a powerbroker are given half the weighting of other commodities in total scores

  • Commitment strength
    12/20
    Avg. score
  • Reporting and Implementation
    25/50
    Avg. score
  • Social considerations
    9/18
    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.