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Sumitomo Forestry Co Ltd

Timber and pulp assessment
  • Latest update: July 2019
  • Next scheduled: July 2020

  • About this company:

    Incorporated in 1948, Sumitomo Forestry is headquartered in

  • Parent company:
    Sumitomo Corporation
  • Landbank
    264,974 hectares
  • Market cap:
    2,175,922,545 USD
  • Thomson Reuters ticker:
    1911.T
  • Bloomberg ticker:
    1911:JP
  • ISIN:
    JP3409800004
  • Website:

Company assessment: Sumitomo Forestry Co Ltd – July 2019

Assessment date:

Total: 41.3% 50 / 121
  • Sustainability policy and leadership Sustainability policy and leadership
    10 / 11 90.9%
    • Yes
      1 / 1

      1. Sustainable forestry policy or commitment for all its operations?

    • Yes
      1 / 1

      2. Sustainability policy or commitment applies to all sourcing?

    • Yes
      1 / 1

      3. High-level position of responsibility for sustainability?

      The company has established a sustainability committee with executive officers, directors and divisional mangers and President as the chairperson

    • Yes
      1 / 1

      4. One or more board members have responsibility for sustainability?

      Mr. Akira Ichikawa (President and Representative Director) is the chair person of the company's sustainability committee

    • Yes
      1 / 1

      5. Percentage or number of women board members?

      1 (10%)

    • Yes
      1 / 1

      6. Percentage or number of women in senior management team?

      1 (5%)

    • Yes
      1 / 1

      7. Sustainability report published within last two years?

    • Yes
      1 / 1

      8. Member of multiple industry schemes or other external initiatives to improve forest management or transparency?

      GRI, UNGC

    • Yes
      1 / 1

      9. Activities with government, NGOs or academic institutions to improve the sustainability of forest products?

      The company is involved in a partnership with the Tokyo Metropolitan Government and cooperates with some local NGOs and companies on biodiversity conservation

    • Yes
      1 / 1

      10. Climate risks assessment available?

      The company assesses environmental risks (including climate change) and set up a Risk Management Committee which is evaluating the progress on mitigating these risks

    • No
      0 / 1

      11. Natural capital assessment available?

  • Landbank, mills and traceability Landbank, mills and traceability
    8 / 20 40%
    • Yes
      1 / 1

      12. Lists countries and operations?

    • Partial
      0.5 / 1

      13. Total area of natural forest designated for wood/wood fibre production (ha)?

      20,863.8 - The company does not report a total figure for all of its natural forests. Figure complicated to calculate, based on percentage of natural forests in Japan using % figures from graphs

    • Partial
      0.5 / 1

      14. Total area of forest plantation (ha)?

      244,083 - The company does not report a total figure for all of its plantations. Figure is calculated using a graph and a table

    • Yes
      1 / 1

      15. Area of plantation/natural forest within outgrower schemes (ha)?

      4,845 - Figure represents area of Koperasi Serba Usaha Alas Mandiri KTI (1,005 ha), Koperasi Bromo Mandiri KTI (207 ha) and other reforestation areas (3,663 ha) in Indonesia

    • No
      0 / 1
      No source

      16. Unplanted (areas designated for future development as plantation forest) (ha)?

    • Partial
      0.5 / 1

      17. Conservation set-aside and/or HCV area (ha)?

      20% - The company states that protected areas cover 20% of its land, but it is unclear if this covers its land in all countries of operation

    • 18. Area of Intact Forest Landscape (ha)?

      This indicator is disabled as the company's reporting broadly suggests that it doesn't have any intact forest landscapes within its landbank. Please note that ZSL has been unable to confirm this

    • No
      0 / 1
      No source

      19. Number of Forest Management Units (FMUs)?

    • Partial
      0.5 / 1

      20. Maps of forest management units (FMUs)?

      Only one of the company's FMUs (PT. Mayangkara Tanaman Industri ) could be found on Global Forest Watch

    • No
      0 / 1
      No source

      21. Forest management plans available for all FMUs?

    • No
      0 / 1
      No source

      22. Monitoring of forest management plan implementation?

    • 23. Company has provided valid legal documents to Open Timber Portal on use rights (at the time of SPOTT assessments)?

      This indicator is disabled as the company's reporting broadly suggests that it doesn't operate in a geography currently covered by Open Timber Portal. Please note that ZSL has been unable to confirm this

    • 24. Company has provided valid legal documents to Open Timber Portal on forest management (at the time of SPOTT assessments)?

      This indicator is disabled as the company's reporting broadly suggests that it doesn't operate in a geography currently covered by Open Timber Portal. Please note that ZSL has been unable to confirm this

    • 25. Company has provided valid legal documents to Open Timber Portal on timber harvesting (at the time of SPOTT assessments)?

      This indicator is disabled as the company's reporting broadly suggests that it doesn't operate in a geography currently covered by Open Timber Portal. Please note that ZSL has been unable to confirm this

    • 26. Number of company owned pulp and paper mills?

      This indicator is disabled as the company's reporting broadly suggests that it doesn't own pulp or paper mills. Please note that ZSL has been unable to confirm this

    • 27. Maps or addresses of company owned pulp and paper mills?

      This indicator is disabled as the company's reporting broadly suggests that it doesn't own pulp or paper mills. Please note that ZSL has been unable to confirm this

    • No
      0 / 1
      No source

      28. Number of company owned sawmills?

    • No
      0 / 1
      No source

      29. Maps or addresses of company owned sawmills?

    • No
      0 / 1
      No source

      30. Number of supplier mills?

    • No
      0 / 1
      No source

      31. Maps or addresses of supplier mills?

    • Yes
      1 / 1

      32. Procedures to trace raw materials to country of harvest?

      The company has a due diligence system that enables raw materials to be traced back to origin

    • Yes
      1 / 1

      33. Procedures to trace raw materials to FMU level?

      The company has a due diligence system that enables raw materials to be traced back to origin

    • Yes
      2 / 2

      34. Percentage of supply traceable to country level (above 80%)?

      100% - The company states that all suppliers were assessed in 2017 by the due diligence system which provides traceability to country of harvest

    • No
      0 / 2
      No source

      35. Percentage of supply traceable to FMU level (above 75%)?

  • Deforestation and biodiversity Deforestation and biodiversity
    5 / 12 41.7%
    • No
      0 / 1
      No source

      36. Commitment to zero conversion of natural forest?

    • No
      0 / 1
      No source

      37. Zero conversion commitment applies to all sourcing?

    • No
      0 / 1
      No source

      38. Commitment to minimise the impact of logging roads?

    • Partial
      0.5 / 1

      39. Commitment to protect forest areas from illegal activities?

      The company has a commitment to prevent illegal logging. A broader commitment to protect forest areas from illegal activities could not be identified

    • No
      0 / 1
      No source

      40. Evidence of monitoring deforestation?

    • No
      0 / 1
      No source

      41. Amount of deforestation recorded?

    • Yes
      1 / 1

      42. Commitment to biodiversity conservation?

    • Yes
      1 / 1

      43. Examples of species and/or habitat conservation management?

    • Partial
      0.5 / 1

      44. Implementing a landscape-level approach to biodiversity conservation?

      Vague statement about recognising the importance of a landscape approach

    • Yes
      1 / 1

      45. Identified species of conservation concern referencing international or national system of species classification?

      The company states it will work to prevent a decline in the number of species in natural forests and will give "utmost consideration to the protection of rare flora and fauna in all operations". Reference is made to the Sumitomo Forestry Red Data Book, which lists species designated endangered at the national or regional level

    • No
      0 / 1
      No source

      46. Commitment to sustainably manage the use of non-timber forest products (NTFPs)?

    • Yes
      1 / 1

      47. Commitment not to use genetically modified organisms?

      The company has committed to not be directly or indirectly involved in the introduction of genetically modified organisms in forestry operations. This commitment is made through the FSC Policy for Association (FSC-POL-01-004)

  • HCV, HCS and impact assessments HCV, HCS and impact assessments
    1 / 8 12.5%
    • Partial
      0.5 / 1

      48. Commitment to conduct High Conservation Value (HCV) assessments?

      The company does not have a direct commitment to conduct HCV assessments across all of its operations. However, the company has committed to not be directly or indirectly involved in the destruction of high conservation values in forestry operations. This commitment is made through the FSC Policy for Association (FSC-POL-01-004). For this half points are awarded

    • Partial
      0.5 / 1

      49. HCV commitment applies to all sourcing?

      The company has committed to not be directly or indirectly involved in the destruction of high conservation values in forestry operations. This commitment is made through the FSC Policy for Association (FSC-POL-01-004). For this half points are awarded

    • 50. Commitment to only use licensed High Conservation Value (HCV) assessors accredited by the HCV Resource Network's Assessor Licensing Scheme (ALS)?

      This indicator is disabled until sufficient number of HCV ALS licensed assessors are available for the location where the company operates

    • No
      0 / 1

      51. High Conservation Value (HCV) assessments available?

      The company states it identified high conservation value forests (HCVF) areas within its West Kalimantan site in Indonesia in 2013. This assessment is not publicly available. HCV assessments for other company operations could not be identified

    • No
      0 / 1
      No source

      52. High Conservation Value (HCV) management and monitoring plans available?

    • No
      0 / 1
      No source

      53. Commitment to the High Carbon Stock (HCS) Approach?

    • No
      0 / 1
      No source

      54. High Carbon Stock (HCS) assessments available?

    • No
      0 / 1
      No source

      55. Commitment to conduct social and environmental impact assessments (SEIAs)?

    • No
      0 / 1
      No source

      56. Social and environmental impact assessments (SEIAs) available?

    • 57. Company has provided valid legal documents to Open Timber Portal on impact assessments (at the time of SPOTT assessments)?

      This indicator is disabled as the company's reporting broadly suggests that it doesn't operate in a geography currently covered by Open Timber Portal. Please note that ZSL has been unable to confirm this

  • Soils, fire and GHGs Soils, fire and GHGs
    4 / 13 30.8%
    • No
      0 / 1
      No source

      58. Commitment to best management practices for soils and/or peat?

    • No
      0 / 1
      No source

      59. Commitment to reduced impact logging?

    • No
      0 / 1
      No source

      60. Commitment to no planting on peat of any depth?

    • 61. Commitment on peatland planting applies to all sourcing?

      This indicator is disabled as the company's reporting broadly suggests that it doesn't have suppliers with landbank on peat. Please note that ZSL has been unable to confirm this

    • No
      0 / 1
      No source

      62. Landbank or planted area on peat (ha)?

    • Yes
      1 / 1

      63. Evidence of best management practices for soils and/or peat?

    • No
      0 / 1
      No source

      64. Commitment to zero burning?

    • No
      0 / 1
      No source

      65. Commitment to zero burning applies to all sourcing?

    • Yes
      1 / 1

      66. Evidence of management and monitoring fires?

      The company carried out education training on fire with local residents in Indonesia and on fire prevention in PNG. In Indonesia it also established a fire prevention system together with the government

    • No
      0 / 1
      No source

      67. Details/number of hotspots/fires in FMUs controlled by the company?

    • Partial
      0.5 / 1

      68. Time-bound commitment to reduce GHG emissions intensity?

      21% - The company has set absolute GHG Science Based targets but does not report on intensity reduction target.
      Scope 1 and 2: 21% reduction of greenhouse gas emissions compared to 2017 (base year) by 2030

    • Partial
      0.5 / 1

      69. Progress towards reducing GHG emission intensity?

      The company reports a 10% increase in total Scope 1 and Scope 2 emissions for the 2017 fiscal year compared to 2016. Not data is provided on GHG emission intensity

    • No
      0 / 1
      No source

      70. Report GHG emissions from land use change?

    • Yes
      1 / 1

      71. Methodology used to calculate GHG emissions?

      GHG Protocol and "international accounting tools"

  • Water, chemical and waste management Water, chemical and waste management
    1.5 / 9 16.7%
    • No
      0 / 1
      No source

      72. Time-bound commitment to improve water quality (BOD and COD)?

    • No
      0 / 1
      No source

      73. Progress towards commitment on water quality (BOD and COD)?

      The company reports BOD and COD levels for FY 2017 but does not have a commitment to reduce the emissions

    • Partial
      0.5 / 1

      74. Commitment to protection of natural waterways through buffer zones?

      The company has a management manual for the preservation of riparian areas but it is unclear if this applies to all of its operations

    • 75. Evidence of treatment of pulp and paper mill effluent?

      This indicator is disabled as the company's reporting broadly suggests that it doesn't own pulp or paper mills. Please note that ZSL has been unable to confirm this

    • No
      0 / 1
      No source

      76. Evidence of sawmill run-off containment and wastewater treatment?

    • 77. Time-bound commitment to improve water use intensity?

      This indicator is disabled as the company's reporting broadly suggests that it doesn't own pulp or paper mills. Please note that ZSL has been unable to confirm this

    • 78. Progress towards commitment on water use intensity?

      This indicator is disabled as the company's reporting broadly suggests that it doesn't own pulp or paper mills. Please note that ZSL has been unable to confirm this

    • 79. Commitment to eliminate chlorine and chlorine compounds for bleaching?

      This indicator is disabled as the company's reporting broadly suggests that it doesn't own pulp or paper mills. Please note that ZSL has been unable to confirm this

    • Partial
      0.5 / 1

      80. Commitment to minimise the use of chemicals, including pesticides and chemical fertilisers?

      Brief statement on trying to reduce the use of hazardous chemicals

    • No
      0 / 1
      No source

      81. No use of World Health Organisation (WHO) Class 1A and 1B pesticides?

    • No
      0 / 1
      No source

      82. No use of chemicals listed under the Stockholm Convention and Rotterdam Convention?

    • No
      0 / 1
      No source

      83. Integrated Pest Management (IPM) approach?

    • Partial
      0.5 / 1

      84. Chemical usage per ha or list of chemicals used?

      List of chemicals used does not cover the company's whole operations

  • Community, land and labour rights Community, land and labour rights
    11.5 / 22 52.3%
    • Yes
      1 / 1

      85. Commitment to human rights, referencing the UN Declaration on Human Rights or UN Guiding Principles on Business and Human Rights?

    • Yes
      1 / 1

      86. Commitment to human rights applies to all sourcing?

      The company has committed to not be directly or indirectly involved in the violation of human rights in forestry operations. This commitment is made through the FSC Policy for Association (FSC-POL-01-004), which defines human rights as those established through the UN Declaration of Human Rights

    • Yes
      1 / 1

      87. Commitment to respect indigenous and local communities' rights?

      The company has committed to not be directly or indirectly involved in the violation of human rights in forestry operations. This commitment is made through the FSC Policy for Association (FSC-POL-01-004), which encompasses the rights of Indigenous and Tribal Peoples as established by the ILO Convention 169

    • Partial
      0.5 / 1

      88. Commitment to respect legal and customary property rights?

      The company has committed to not be directly or indirectly involved in the violation of traditional rights in forestry operations. This commitment is made through the FSC Policy for Association (FSC-POL-01-004), which encompasses customary rights. This policy does not reference legal rights and no reference to legal rights could be found in company sources

    • No
      0 / 1
      No source

      89. Commitment to free, prior and informed consent (FPIC)?

    • No
      0 / 1
      No source

      90. FPIC commitment applies to independent suppliers?

    • No
      0 / 1
      No source

      91. Details of free, prior and informed consent (FPIC) process available?

    • No
      0 / 1
      No source

      92. Examples of local stakeholder engagement to prevent conflicts?

    • No
      0 / 1
      No source

      93. Details of process for addressing land conflicts available?

    • Partial
      0.5 / 1

      94. Commitment to support the inclusion of women across forestry operations, including addressing barriers faced?

      The company provides examples of support offered to women, but does not have a clear commitment to support the inclusion of women across forestry operations, including addressing barriers faced

    • Yes
      1 / 1

      95. Commitment to provide essential community services and facilities?

    • 96. Company has provided valid legal documents to Open Timber Portal on population rights (at the time of SPOTT assessments)?

      This indicator is disabled as the company's reporting broadly suggests that it doesn't operate in a geography currently covered by Open Timber Portal. Please note that ZSL has been unable to confirm this

    • Yes
      1 / 1

      97. Commitment to respect all workers' rights?

      The company commits to human rights in the workplace also referencing the ILO Declaration on Fundamental Principles and Rights at Work

    • Yes
      1 / 1

      98. Reference to Fundamental ILO Conventions?

      The company commits to the ILO’s Declaration on Fundamental Principles and Rights at Work

    • Yes
      1 / 1

      99. Commitment to eliminate gender related discrimination with regards to employment and occupation?

    • 100. Company has provided valid legal documents to Open Timber Portal on labour regulations (at the time of SPOTT assessments)?

      This indicator is disabled as the company's reporting broadly suggests that it doesn't operate in a geography currently covered by Open Timber Portal. Please note that ZSL has been unable to confirm this

    • Yes
      1 / 1

      101. Percentage or number of temporary employees?

      4,498 (24.7%) - Figures as of March 2018

    • Partial
      0.5 / 1

      102. Percentage or number of women employees?

      20.4% - The company also reports the percentage of female employees in management positions within Sumitomo Forestry (3.2%) and in its domestic subsidiaries (4.6%), but these figures represent operations only in Japan

    • Partial
      0.5 / 1

      103. Payment of minimum wage?

      The company states that minimum wage is paid to all workers however no evidence is provided

    • No
      0 / 1
      No source

      104. Reporting of salary by gender?

    • Partial
      0.5 / 1

      105. Commitment to address occupational health and safety, referencing the ILO Code of Practice on Safety and Health in Forestry Work?

      Health and safety policy in place, but does not refer to the ILO Code of Practice on Safety and Health in Forestry Work

    • Partial
      0.5 / 1

      106. Time lost due to work-based injuries?

      0.1 - The company reports the number of occupational injuries in company-owned forests, new construction sites and other operations, but reports lost-time injury frequency rate for operations in Japan only

    • Partial
      0.5 / 1

      107. Number of fatalities as a result of work-based accidents?

      0 - Figure only covers operations in Japan

    • No
      0 / 1
      No source

      108. Provision of personal protective equipment and related training?

  • Certification standards Certification standards
    2 / 14 14.3%
    • No
      0 / 1

      109. Time-bound plan for achieving 100% third-party legality verification of FMUs or achieved?

      The company mentions 100% SGEC certification of its 47,977 ha forest in Japan. However, no time-bound plan for overseas plantation is provided

    • No
      0 / 1
      No source

      110. Time-bound plan to source only wood/wood fibre that is in legal compliance verified by a third party?

    • Yes
      1 / 1

      111. Percentage area (ha) verified as being in legal compliance by a third party?

      220,292 (79.48%) - Sum of operations SGEC, FSC FM/COC, CW/FM and PHPL certified

    • No
      0 / 1

      112. Percentage of all wood/wood fibre supply traded/processed verified as being in legal compliance by a third party?

      1,212 - The company reports the area (ha) of outgrower scheme supplier landbank FSC certified as 1,212 ha, but does not report the percentage of supply certified.

    • No
      0 / 1

      113. Time-bound plan for achieving 100% FSC FM certification of FMUs or achieved 100% FSC-certification of FMUs?

    • No
      0 / 1
      No source

      114. Commitment to source only wood/wood fibre that meets FSC Controlled Wood requirements?

    • Partial
      0.5 / 2

      115. Percentage area (ha) FSC FM certified?

      57,332 (20.6%) - 19,920 ha FSC certified under Open Bay Timber (OBT) company in PNG, 36,200 ha under Tasman Pine Forest (TPF) in New Zealand, 1,005 ha under KAM KTI and 207 ha under KBM KTI

    • No
      0 / 2

      116. Percentage of wood/wood fibre supply from outgrower scheme and/or independent suppliers that is FSC FM certified?

      The company reports the area (ha) of outgrower scheme supplier landbank FSC certified as 1,212 ha, but does not report the percentage of supply that this represents

    • No
      0 / 2
      No source

      117. Percentage of all wood/wood fibre supply traded/processed that are FSC certified (above 75%)?

    • Partial
      0.5 / 2

      118. Percentage area (ha) PEFC certified (excluding FSC certified area)?

      47,977 (21.74%) - SGEC certified area of company-owned forests in Japan. Percentage calculation excludes the company's land that is FSC certified and land in PNG where currently no PEFC-endorsed certification exists

  • Smallholders and suppliers Smallholders and suppliers
    4 / 6 66.7%
    • Yes
      1 / 1

      119. Programme to support outgrower scheme smallholders?

      Provides seedlings, helps to achieve FSC certification, sustainable forest management programs

    • No
      0 / 1

      120. Percentage of outgrower scheme smallholders involved in programme?

      259 - The company only reports the number involved in a 2009 report, no updated figures could be found

    • Yes
      1 / 1

      121. Process used to prioritise, assess and/or engage suppliers on compliance with company's policy and/or legal requirements?

      The company states it reviews suppliers regularly based on its Sumitomo Group Procurement Policy. Surveys and one-on-one interviews are conducted

    • Yes
      1 / 1

      122. The company has a Due Diligence System (DDS)?

    • No
      0 / 1
      No source

      123. Suspension or exclusion criteria for suppliers?

    • Yes
      1 / 1

      124. Percentage of suppliers assessed and/or engaged on compliance with company requirements?

      106

  • Governance and grievances Governance and grievances
    3 / 6 50%
    • Yes
      1 / 1

      125. Commitment to ethical conduct and prohibition of corruption?

    • 126. Company has provided valid legal documents to Open Timber Portal on legal registration (at the time of SPOTT assessments)?

      This indicator is disabled as the company's reporting broadly suggests that it doesn't operate in a geography currently covered by Open Timber Portal. Please note that ZSL has been unable to confirm this

    • Partial
      0.5 / 1

      127. Disclosure of the company's management approach to tax and payments to governments?

      The company only disclosed a tax strategy with limited details

    • 128. Company has provided valid legal documents to Open Timber Portal on taxes, fees and royalties (at the time of SPOTT assessments)?

      This indicator is disabled as the company's reporting broadly suggests that it doesn't operate in a geography currently covered by Open Timber Portal. Please note that ZSL has been unable to confirm this

    • Partial
      0.5 / 1

      129. Whistleblowing procedure?

      The company has a whistleblowing mechanism but only limited information is given and no clear description of steps

    • Yes
      1 / 1

      130. Own grievance or complaints system open to all stakeholders?

    • No
      0 / 2

      131. Details of grievances disclosed?

      The company provides limited detail on grievances and actions taken

Media monitor: Sumitomo Forestry Co Ltd

SPOTT gathers reports and stories from global media sources, covering specific company activities related to the assessment indicator categories. ZSL does not assess the validity of these reports.

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Scoring criteria: Sumitomo Forestry Co Ltd

Scoring criteria guide how ZSL conducts SPOTT assessments and allocates scores to ensure a fair and consistent approach, setting the expectations for companies on how they should publish ESG data. The full indicator framework contains 131 indicators across 10 categories.

SPOTT is a ZSL initiative.
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