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  • Overall approach
    4/10
    • Overarching commitment on deforestation
      0/4
    • Signatory to an initiative tackling deforestation
      1/1
      Signatory
      Yes
      1/1
      "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
      Awareness
      Yes
      1/1
      "Forests provide a variety of functions for the public benefit, such as sequestering CO2 and storing carbon which mitigate global warming, storing and purifying water, preventing floods and landslides, preserving biodiversity, production of timber, and recreation"
    • Deforestation as a business risk
      1/1
      Business risk
      Yes
      1/1
      What proportion of revenue that comes from relevant industries is exposed to each forest risk commodity?: NA

      What poportion of a company’s annual revenue depends on each forest risk commodity?: NA

      What type of risk is recognised?: Financial; Operational

      What revenue comes from industries relevant to each forest risk commodity?: NA

      Type of risk if Other. Also add any relevant details:
      "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?: Twice annually
      "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
      0/1
    • Reporting on emissions from land-use change
      0/1
    • Disclosure of conservation activity
    • Disclosure of reforestation activity
      Reforestation disclosure
      Yes
      0/0
      How many hectares of reforestation or restoration are being or have been conducted or facilitated by the company?: 29 ha
      "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. Our comprehensive support has also included livelihood assistance to help reduce excessive dependency on forests. Among Vietnam's poorest areas, Dien Bien has suffered severe forest depletion due to practices by local residents such as expansion of farmland and burning of fields. Given its importance as the location of a hydroelectric generator dam and sources of water crucial for all of Vietnam, however, we assist with a portion of the support that JICA provides to the province, such as the formation of organizations to protect forests, conservation activities, forest planting, fruit tree and vegetable cultivation support, as well as helping to provide feed for fish and livestock. 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."
    • Target to reduce emissions in scope 1/2
      Reduce emissions
      Yes
      0/0
      Is this target aligned with/verified by SBTi?: Yes

      Type of climate target: Other or unclear

      What is the target date for the company to achieve their climate target?: 2030
      "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
    40/90
    • Timber
      42/90
      • Commitment Strength
        11/17
        • Commitment to protect priority forests
          5/9.5
          • Commitment details
            Credible certification scheme
            2/6
            Commitment to protect priority forests
            Credible certification scheme
            2/6
            When was this commitment set?: NA

            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
            2024
            0.9/1
            Target date
            2024
            0.9/1
            What actions or steps are identified for time-bound implementation?: 100% sustainable timber. 242,493 HA of certified forest by 2024
            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" [...] "Plan for 2024: Percentage of sustainable wood used in main structural materials (100%) [...] Certified forest area in Japan and overseas (ha)242,493"
          • Interim target date
            Yes
            0.5/0.5
            Interim target date
            Yes
            0.5/0.5
            What date is given for the interim milestone?: 2021
            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" [...] "Plan for 2024: Percentage of sustainable wood used in main structural materials (100%) [...] Certified forest area in Japan and overseas (ha)242,493"
        • Commitment to a traceable supply chain
          6/7.5
          • Commitment details
            Traces to Point of production
            4/4
            Commitment to a traceable supply chain
            Traces to Point of production
            4/4
            When was this commitment set?: na
            "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
            Post 2050 or no target date
            0/1
            Target date
            Post 2050 or 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
      • Associated Human Rights Abuses
        9/17
        • Labour rights in the supply chain
          Yes
          3/3
          Labour rights in the supply chain
          Yes
          3/3
          How far back in the supply chain does this commitment apply?: 'supply chain'

          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
          0/2
        • Gender equality in the supply chain
          Commitment to address gender related labour rights including discrimination and harassment
          1/2
          Gender equality in the supply chain
          Commitment to address gender related labour rights including discrimination and harassment
          0.5/2
          "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
          0/1
        • Commitment to ensure Free, Prior and Informed Consent
          Yes, the company commits to test for FPIC prior to acquiring new interests, developments, or expansions
          2/3
          Commitment to ensure Free, Prior and Informed Consent
          Yes, the company commits to test for FPIC prior to acquiring new interests, developments, or expansions
          2/3
          How far back in the supply chain does this commitment apply?: not specified
          "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
          3/3
          Commitment to resolve land conflicts
          Yes
          3/3
          "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"
        • Zero-tolerance approach to violence and threats
          No
          0/3
      • Implementation and Reporting
        22/56
        • Reporting volumes against commitments
          Unclear reporting on progress/non-quantifiable reporting on progress
          1/3
          Reporting volumes against commitments
          Unclear reporting on progress/non-quantifiable reporting on progress
          0.5/3
          How much of this upstream deforestation is in protected areas, primary forests, intact forest landscapes, and/or peatlands?: NA

          What is the certified volume?: NA

          What is the non-certified/non-compliant volume?: NA

          What is the volume with unknown deforestation/conversion risk? Disaggregated by product type or use as relevant.: NA

          What is the proportion of total commodity volume sourced with known deforestation/conversion risk?: NA

          How much of this downstream deforestation is in protected areas, primary forests, intact forest landscapes, and/or peatlands?: NA

          Does the company report on the degree of compliance/progress with commitments, disaggregated by relevant factors such as origin or supply chain stage?: No

          How many hectares of deforestation and/or conversion have occurred since the commitment cut-off date on land owned, controlled, or managed by the company?: NA

          How many hectares of deforestation and/or conversion have occurred since the commitment cut-off date in the operations of the company's direct or indirect suppliers?: NA

          How many hectares of land owned, controlled or managed is certified?: NA

          What is the compliant volume?: NA
          "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
          Yes, using a third-party verification scheme or certification scheme
          1/2
          Reporting is independently verified
          Yes, using a third-party verification scheme or certification scheme
          1/2
          For what percent of the company's supply volume is third-party verification of performance relative to commitments conducted?: NA

          Which processes or groups does the company use for third party verification?: NA

          Which tools, approaches, third-party verification, including certification, schemes are used?: Auditing

          What percent of the company's supply volume is verified using company verification systems?: 100%

          Is the performance of compliance of some suppliers, sources, or origins not verified, and if so why not?: NA

          What methods are used for verification?: Auditing
          "Certified forest area in Japan and overseas (ha) 2021: 221,971 [..] plan for 2024: 242,493"
        • Suppliers aligned with deforestation commitments across supply chain
          No
          0/3
        • 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 management activities with Dien Bien Province in Vietnam

          What is the nature of that participation?: 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 [...] 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."
        • Jurisdictional approach focused on sustainable land use
          No
          0/2
        • Risk assessments for forest risk
          Yes
          2/2
          Risk assessments for forest risk
          Yes
          2/2
          For what percentage of material produced or sourced by the company has forest risk been assessed?: NA

          How frequently are assessments conducted?: nnually 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. [...] In fiscal 2020, we audited 13 companies in Category A, 18 companies in Category B, and 107 companies in Category C."
        • 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
          3/3
          Report volumes of commodity
          Reporting total volume
          3/3
          Reporting non-certified/non-compliant volume: NA

          What product types/sectors is this in?: construction

          What is the non-DCF commodity volume sourced from known production areas, and proportion of total supply chain volume this represents?: NA

          Reporting certified/compliant volume: NA

          Total volume: 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)
        • Upstream: Monitor compliance with human rights
          Yes, and publishes evidence of actions taken to implement its commitment on labour rights in the production or primary processing operations that it owns, manages or otherwise controls or its supply chains
          3/5
          Upstream: Monitor compliance with human rights
          Yes, and publishes evidence of actions taken to implement its commitment on labour rights in the production or primary processing operations that it owns, manages or otherwise controls or its supply chains
          2.5/5
          What steps has the company taken to implement their labour rights commitment?: surveys

          What percentage/number of new interests, developments, or expansions has the company used FPIC to secure consent of indigenous peoples/local communities?: NA

          What is the status of those FPIC processes?: NA
          "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
        • Compliance of company-owned operations
          No
          0/5
        • 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?: NA

          For what percentage of production units has an ESIA been carried out as part of the land use planning process?: NA
          "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
          For what percentage of production or primary processing operations that it owns, manages, or otherwise controls does the company use external processes or actors, such as certification, to monitor compliance?: NA

          If so, what jurisdictions and mechanisms does the company use?: NA

          What tools, processes, bodies carry out monitoring of the company's production or processing operations?: FSC and internal risk management system

          For what percentage of suppliers does the company use/rely on external mechanisms to monitor compliance?: 100%

          For what percentage of the commodity sourced by the company is deforestation/conversion monitored at the farm level on production units known to be in the company's supply chain?: 100%

          How frequently is compliance assessed?: Annually

          Does the company use a jurisdictional monitoring mechanism?: No

          Does the company use a certification system?: Yes
          "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
          2/4
          Downstream: Monitor compliance in supply chain
          Yes, for its suppliers
          2/4
          For what percent of suppliers does the company directly monitor compliance of production or processing operations?: 100%

          For what percentage of the commodity sourced by the company is deforestation/conversion monitored at the farm level on production units known to be in the company's supply chain?: 100%

          What percentage of the company's supply chain volume does that represent?: 100%

          How is compliance monitored?: Certification; Internal monitoring and verification systems

          For what percentage of suppliers does the company use/rely on external mechanisms to monitor compliance?: NA

          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 with a time-bound threat of exclusion
          2/2
          Downstream: Engagement with non-compliant suppliers
          Engage with suppliers with a time-bound threat of exclusion
          2/2
          What type of support does the company offer to its suppliers to help them achieve compliance with commitments?: supplier evaluation meetings and feedback

          Does the company commit to engage with rightsholders, Indigenous peoples and local communities when developing the implementation plan?: No

          Does the company work with the non-compliant supplier to develop an implementation plan to remedy associated harms or non-compliance?: No

          What criteria does the policy specify for blacklisting or exclusion?: failure to comply with procurement standards

          Does the company engage non-compliant indirect suppliers in order to address and remedy non-compliance?: No
          "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" [...] [Translation] "After repeated dialogues with business partners who do not comply with procurement standards, we will suspend contracts [...] if we are unable to confirm sustainability."
        • 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

          How many noncompliant producers or suppliers are engaged through improvement plans or other processes, and what percentage of the company's supply chain volume does that represent?: 16
          "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 *
      35/90
      • Commitment Strength
        11/17
        • Commitment to protect priority forests
          5/9.5
          • Commitment details
            Credible certification scheme
            2/6
            Commitment to protect priority forests
            Credible certification scheme
            2/6
            What paper/pulp product does their commitment apply to?: Paper products

            If other certification, specify: SGEC

            Which certification schemes are used?: FSC; Other certification

            When was this commitment set?: NA
            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" [...] "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." [...] 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
            2024
            0.9/1
            Target date
            2024
            0.9/1
            What actions or steps are identified for time-bound implementation?: 100% sustainable timber. 242,493 HA of certified forest by 2024
            "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." [...] "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" [...] "Plan for 2024: Percentage of sustainable wood used in main structural materials (100%) [...] Certified forest area in Japan and overseas (ha)242,493"
          • Interim target date
            Yes
            0.5/0.5
            Interim target date
            Yes
            0.5/0.5
            What date is given for the interim milestone?: 2021
            "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." [...] "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" [...] "Plan for 2024: Percentage of sustainable wood used in main structural materials (100%) [...] Certified forest area in Japan and overseas (ha)242,493"
        • Commitment to a traceable supply chain
          6/7.5
          • Commitment details
            Traces to Point of production
            4/4
            Commitment to a traceable supply chain
            Traces to Point of production
            4/4
            When was this commitment set?: NA
            "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." [...] "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
            "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." [...] "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
            Post 2050 or no target date
            0/1
          • Interim target date
            No
            0/0.5
      • Associated Human Rights Abuses
        9/17
        • Labour rights in the supply chain
          Yes
          3/3
          Labour rights in the supply chain
          Yes
          3/3
          How far back in the supply chain does this commitment apply?: 'supply chain'

          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
          0/2
        • Gender equality in the supply chain
          Commitment to address gender related labour rights including discrimination and harassment
          1/2
          Gender equality in the supply chain
          Commitment to address gender related labour rights including discrimination and harassment
          0.5/2
          "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
          0/1
        • Commitment to ensure Free, Prior and Informed Consent
          Yes, the company commits to test for FPIC prior to acquiring new interests, developments, or expansions
          2/3
          Commitment to ensure Free, Prior and Informed Consent
          Yes, the company commits to test for FPIC prior to acquiring new interests, developments, or expansions
          2/3
          How far back in the supply chain does this commitment apply?: not specified
          "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
          3/3
          Commitment to resolve land conflicts
          Yes
          3/3
          "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"
        • Zero-tolerance approach to violence and threats
          No
          0/3
      • Implementation and Reporting
        16/56
        • Reporting volumes against commitments
          Unclear reporting on progress/non-quantifiable reporting on progress
          1/3
          Reporting volumes against commitments
          Unclear reporting on progress/non-quantifiable reporting on progress
          0.5/3
          What is the compliant volume?: NA

          How much of this downstream deforestation is in protected areas, primary forests, intact forest landscapes, and/or peatlands?: NA

          How many hectares of deforestation and/or conversion have occurred since the commitment cut-off date in the operations of the company's direct or indirect suppliers?: NA

          Does the company report on the degree of compliance/progress with commitments, disaggregated by relevant factors such as origin or supply chain stage?: No

          What is the certified volume?: NA

          What is the proportion of total commodity volume sourced with known deforestation/conversion risk?: NA

          What is the volume with unknown deforestation/conversion risk? Disaggregated by product type or use as relevant.: NA

          What is the non-certified/non-compliant volume?: NA
          "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." [...] "We aim to reach 100% procurement of sustainable timber and timber products in fiscal 2021" [...] "2021 results Certified forest area in Japan and overseas (ha) 221,971 ha [...] plan for 2024 242,493ha [...] Percentage of sustainable wood used in main structural materials (%) [...] Fiscal 2021 results 100%"
        • Reporting is independently verified
          Yes, using an internal verification system
          2/2
          Reporting is independently verified
          Yes, using an internal verification system
          2/2
          Is the performance of compliance of some suppliers, sources, or origins not verified, and if so why not?: NA

          Which tools, approaches, third-party verification, including certification, schemes are used?: FSC

          Which processes or groups does the company use for third party verification?: FSC

          What percent of the company's supply volume is verified using company verification systems?: NA

          For what percent of the company's supply volume is third-party verification of performance relative to commitments conducted?: NA

          What methods are used for verification?: FSC
          "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." [...] "Certified forest area in Japan and overseas (ha) 2021: 221,971 [..] plan for 2024: 242,493"
        • Suppliers aligned with deforestation commitments across supply chain
          No
          0/3
        • Deforestation cut off date
          No
          0/2
        • Collaborative actions
          No
          0/2
        • Jurisdictional approach focused on sustainable land use
          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

          For what percentage of material produced or sourced by the company has forest risk been assessed?: NA
          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. [...] In fiscal 2020, we audited 13 companies in Category A, 18 companies in Category B, and 107 companies in Category C.""
        • 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
          0/3
        • Upstream: Monitor compliance with human rights
          Yes, and publishes evidence of actions taken to implement its commitment on labour rights in the production or primary processing operations that it owns, manages or otherwise controls or its supply chains
          3/5
          Upstream: Monitor compliance with human rights
          Yes, and publishes evidence of actions taken to implement its commitment on labour rights in the production or primary processing operations that it owns, manages or otherwise controls or its supply chains
          2.5/5
          What steps has the company taken to implement their labour rights commitment?: surveys

          What is the status of those FPIC processes?: NA

          What percentage/number of new interests, developments, or expansions has the company used FPIC to secure consent of indigenous peoples/local communities?: NA
          "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
        • Compliance of company-owned operations
          No
          0/5
        • Downstream: Publishing supplier lists
          No
          0/4
        • Downstream: Monitor compliance in supply chain
          Yes, for its suppliers
          2/4
          Downstream: Monitor compliance in supply chain
          Yes, for its suppliers
          2/4
          For what percentage of the commodity sourced by the company is deforestation/conversion monitored at the farm level on production units known to be in the company's supply chain?: 100%

          How is compliance monitored?: Certification; Internal monitoring and verification systems

          What percentage of the company's supply chain volume does that represent?: 100%

          For what percentage of suppliers does the company use/rely on external mechanisms to monitor compliance?: NA

          For what percent of suppliers does the company directly monitor compliance of production or processing operations?: 100%

          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 with a time-bound threat of exclusion
          2/2
          Downstream: Engagement with non-compliant suppliers
          Engage with suppliers with a time-bound threat of exclusion
          2/2
          What type of support does the company offer to its suppliers to help them achieve compliance with commitments?: supplier evaluation meetings and feedback

          Does the company commit to engage with rightsholders, Indigenous peoples and local communities when developing the implementation plan?: No

          What criteria does the policy specify for blacklisting or exclusion?: failure to comply with procurement standards

          Does the company work with the non-compliant supplier to develop an implementation plan to remedy associated harms or non-compliance?: No

          Does the company engage non-compliant indirect suppliers in order to address and remedy non-compliance?: Yes
          "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" [...] [Translation] "After repeated dialogues with business partners who do not comply with procurement standards, we will suspend contracts [...] if we are unable to confirm sustainability."
        • Downstream: Disclosure of non-compliant suppliers
          Yes, excluded
          1/2
          Downstream: Disclosure of non-compliant suppliers
          Yes, excluded
          1/2
          How many noncompliant producers or suppliers are engaged through improvement plans or other processes, and what percentage of the company's supply chain volume does that represent?: 16

          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."
  • * commodity scores for which a company is not a powerbroker are given half the weighting of other commodities in total scores

  • Commitment strength
    11/17
    Avg. score
  • Implementation and Reporting
    20/56
    Avg. score
  • Associated Human Rights Abuses
    9/17
    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 & Engineering, Forest Products, Paper Packaging
Segments
Trader, Processor, Manufacturer, Retailer
HQ
HQ 
Japan
Company Type
Company type 
CO
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.