Home > CSR > Environmental and Social Report 2011 > Four Material Issues
There continues to be a decline in the world's forests through illegal logging and excessive slash-and-burn farming, with approximately 52 million hectares1 lost over the past ten years (about 1.4 times the area of Japan).
In Indonesia, where Sumitomo Forestry is engaged in business activities, there has been a reduction in forests of around 5 million hectares over the past ten years. In order to continue using timber resources into the future, it is essential to use timber from forests in which sustainable forest management is carried out, and never to use timber derived from illegal logging.
Sumitomo Forestry procures timber from around the world, primarily Southeast Asia and Europe. In fiscal 2007, Sumitomo Forestry established its Timber Procurement Philosophy & Policy and Action Plan, and has promoted procurement of timber from forests that have been verified as legally compliant and appropriately managed. In fiscal 2009, verification of compliance by all overseas suppliers was completed. In addition to legal compliance, from fiscal 2010 the Company has promoted the use of environmentally friendly timber in accordance with its New Action Plan.
In addition, the economic development of regional society and enhancement of people's living standards are crucial elements in resolving issues such as illegal logging and slash-and-burn farming. In its overseas plantation forestry business, the Company has therefore promoted social forestry2 together with local people. Going forward, Sumitomo Forestry will continue promoting the use of sustainable timber resources by expanding forest management in a way that contributes to environmental protection and the development of regional society.
| FY 2007 | FY 2008 | FY 2009 | FY 2010 | |
|---|---|---|---|---|
| Percentage of certified timber and plantation timber3 | － | － | 64% | 60% |
| Overseas plantation land area4 | 3,077ha | 3,312ha | 4,313ha | 5,046ha |
| Company-owned forests in Japan, land area | 40,567ha | 41,532ha | 42,642ha | 42,636ha |
Sumitomo Forestry will continue to advance its efforts based on the New Action Plan for timber procurement, which sets targets for fiscal 2012.
| Segment | Division | Action Plan • FY2012 Target |
|---|---|---|
| Group-wide | With the objective of contributing to the global environment, expand use and handling of timber from forests certified as legally compliant and sustainable (FSC®, PEFC, SGEC); use and handle timber from sustainable plantatio forests; use and handle timber from forests in Japan to promote revitalization of the domestic forestry industry. | |
| Do not use, handle or purchase illegally logged timber. Continue handling 100% certified legally compliant directly imported timber and timber products. | ||
| Action Plan by Division | ||
| Domestic Forestry Domestic Distribution |
Forestry Department of Forestry and Environment Division | Continue 100% certification of Company-owned forests (SGEC certification). |
| Preserve and protect biodiversity in Company-owned forests. | ||
| Sumitomo Forestry Timberland Management Co., Ltd. | Promote handling of Japanese timber / Increase to 75% of volume used from FY2009. | |
| Timber Distribution | Forest Products Trading Department of the Timber & Building Materials Division | Promote use and handling of timber from certified forests (FSC®, PEFC, SGEC) and plantation forests. Increase to 70% of total volume handled. |
| Domestic Manufacturing | Sumitomo Forestry Crest Co., Ltd. 3 plants (Nagoya, Kyushu, No. 2 Kyushu) |
Promote use of timber from certified forests (FSC®, PEFC, SGEC), plantation forests, and Japanese forests. Increase to 50% of total volume used. |
| Housing | Housing Division | Promote and expand use of timber produced in Japan. Continue 70% share of Japanese timber used in principal structural members. |
| Expand use of timber from certified forests (FSC®, PEFC, SGEC) and double the volume used compared with FY2009. | ||
The Company will continue to work towards its targets for the year 2012.
