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Sumitomo Forestry's Commitment to Sustainability

On October 10, Sumitomo Forestry Co., Ltd. proudly announced that it has received the highest rating of "A List" for climate change from the international non-profit organization CDP for the tenth consecutive year. This impressive achievement is complemented by the company’s new recognition on the "Forest A List," which highlights outstanding practices in forest conservation.

CDP is a global leader in promoting transparency in environmental practices, particularly in greenhouse gas emission reductions, water conservation, and forest preservation. It evaluates top companies by market capitalization on their efforts to combat climate change and reduce greenhouse gas emissions. The "A Lists" for climate change and forests feature companies that excel in their initiatives against climate change and deforestation.

In July 2018, Sumitomo Forestry set ambitious greenhouse gas emission reduction targets for all its operations by 2030, which were certified under the Science Based Targets initiative (SBTi), establishing its commitment to scientific strategies for sustainability. Furthermore, the company has recently announced a new aim to achieve net-zero greenhouse gas emissions across its entire value chain by 2050, with an SBT certification expected in November 2024. Alongside this, short-term targets for 2030 have also been updated.

The company has prioritized the sustainable utilization of wood, a renewable resource, in its business operations since 2005 when it established its guidelines for wood procurement. In 2007, it expanded its wood procurement principles, and by 2015, it revised its procurement policy to cover materials beyond just wood, taking into account economic, social, and environmental factors. Sumitomo Forestry has made strides in transitioning to alternative materials from natural forest timber and plantations that do not align with its definition of sustainable wood and wood products, achieving a remarkable 100% share of sustainable wood and wood products by September 2021.

With approximately 365,000 hectares of forests under its management both domestically and internationally, Sumitomo Forestry is actively advancing sustainable forest management practices.

Looking ahead towards 2030, a year that is significant for the Sustainable Development Goals (SDGs), the Sumitomo Forestry Group has outlined a long-term vision called "Mission TREEING 2030." This vision identifies nine critical issues from the perspectives of environmental value, human and social value, and market economic value. As part of its mid-term management plan for "Mission TREEING 2030 Phase 2" (2025-2027), which commences this year, the organization aims to further integrate business operations with ESG objectives.

Through these ongoing efforts, Sumitomo Forestry reaffirms its dedication to meeting social expectations surrounding the SDGs and enhancing corporate value.

What is CDP?
CDP, founded in London in 2000, is a non-governmental organization focused on environmental transparency, particularly regarding greenhouse gas emissions and conservation of water and forests. Collaborating with over $142 trillion in assets from institutional investors, CDP promotes the disclosure and management of environmental impacts by companies to mitigate climate change.

About the Science Based Targets initiative
The Science Based Targets initiative, established in 2015 by four organizations—UN Global Compact, CDP, World Resources Institute (WRI), and WWF—advances scientifically grounded goals for greenhouse gas emissions reductions to limit the increase in global temperatures to below 2°C since pre-industrial times.

Defining Sustainable Wood and Wood Products
Sustainable wood and wood products are those certified through forestry certification, recognized as being sustainably sourced through appropriate management and distribution processes, excluding those derived from conversion forests.

(Information as of December 2024)