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  • Parent company:
    Sumitomo Forestry Co Ltd
  • Market cap:
    4,818,012,413 USD
  • Thomson Reuters ticker:
    1911.T
  • Bloomberg ticker:
    1911 JP Equity
  • Website:
  • Media Monitor
    • ZSL's SPOTT team monitors international media for news on assessed companies, collecting articles about pertinent activities. They don't confirm the accuracy of the media coverage, but it can be leveraged by SPOTT users to gain insights into a company's operations and possible risks. To access this company's media reports, scroll down or click here.

Company assessment: Sumitomo Forestry – August 2024

Assessment date:

Score by disclosure type:

Total: 45.3% 78.3 / 173
  • Organisation: 17 / 39 43.6%
  • Policy: 34.5 / 77 44.8%
  • Practice: 26.8 / 57 47%
  • Self-reported: 6.9 / 57 12.1%
  • External: 7 / 57 12.3%
  • Certified: 12.9 / 57 22.6%
  • Sustainability policy and leadership Sustainability policy and leadership
    11.25 / 12 93.8%
    • Organisation: 6 / 6 100%
    • Policy: 2 / 2 100%
    • Practice: 3.3 / 4 81.3%
    • Self-reported: 2.3 / 4 56.3%
    • External: 1 / 4 25%
    • Certified: 0 / 4 0%
    • Y
      1 / 1

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

      The company commits to the multiple dimensions of sustainability covering both social and environmental issues through a series of policies for each related issues of environmental, social and governance. It's Forestry Group Code of Conduct covers the entire supply chain.

    • Y
      1 / 1

      2. Sustainable forestry policy or commitment applies to all suppliers?

      The company's commitment to multiple dimensions of sustainability covering both social and environmental issues also applies to its suppliers.

    • Y
      1 / 1

      3. High-level position of responsibility for sustainability?

      The company has an Executive Officer who is the General Manager of the Sustainability Department.

    • Y
      1 / 1

      4. One or more members within the board of the company have responsibility for sustainability?

      The company's Sustainability Committee consists of a President and Representative Director who has responsibility for sustainability.

    • Y
      1 / 1

      5. Reports gender balance of senior management team?

      2 - The company has two women in its executive officer team.

    • Y
      1 / 1

      6. Reports gender balance of board members?

      2 - The company reports that it has two women on its board of directors.

    • Y
      1 / 1

      7. Member of multiple industry schemes or other external initiatives to reduce negative environmental or social outcomes associated with timber and pulp production?

      [Externally verified] The company is a member of UNGC and WBCSD.

    • Y
      1 / 1

      8. Collaboration with stakeholders to reduce negative environmental or social outcomes associated with timber and pulp production?

      The company reports that it collaborates with NPOs and NGOs to confront social and environmental challenges such as biodiversity and human rights issues. It has also collaborated with governments to engage in forest management activities in Dien Bien Province in Vietnam.

    • Y
      1 / 1

      9. Sustainability report published within last two years?

      The company's latest sustainability report was published in 2023.

    • Y
      1 / 1

      10. Reports through standardised reporting systems?

      The company's report has been prepared in reference to GRI standards and has also submitted the Forest, Climate Change and Water Security CDP Questionnaire for the year 2023.

    • P
      0.75 / 1

      11. Climate risks assessment available?

      The company reports a climate risk assessment which includes actual, and potential impacts of climate change on the company, metrics, targets and processes used to assess or manage climate risks and responsibilities. However, the information is not externally verified.

    • P
      0.5 / 1

      12. Natural capital assessment available?

      The company has identified dependencies on natural capital but has not quantified it or has not set actions.

  • Landbank, maps and traceability Landbank, maps and traceability
    8.75 / 24 36.5%
    • Organisation: 6 / 19 31.6%
    • Policy: 2 / 2 100%
    • Practice: 0.8 / 3 25%
    • Self-reported: 0 / 3 0%
    • External: 0.8 / 3 25%
    • Certified: 0 / 3 0%
    • Y
      1 / 1

      13. Lists countries and operations?

      Log Harvesting - Japan, New Zealand, Papua New Guinea, and Indonesia; Processing- New Zealand, Indonesia, Vietnam, U.S.A and Japan.

    • P
      0.5 / 1

      14. Lists countries sourcing from?

      The company reports region-wise data on the percentage of sourcing supply i.e. Europe 31.7%, Oceania 17.1%, South East Asia 23.1%, East Asia 6.3%, South America 5.6%, Russia 0.7% and North America 15.6%. However, country-wise data was not reported.

    • Y
      1 / 1

      15. Total land area managed/controlled for forestry (ha)?

      287590 - The company reports the total area of forest area managed and owned by the company is 287,590ha.

    • P
      0.5 / 1

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

      20799 - The company only reported approximate figures for area of natural forest for wood/wood fibre production.

    • P
      0.5 / 1

      17. Total area of forest plantation (ha)?

      20799 - The company has not reported an overall figure for all of its forest plantations, the total has been calculated from various approximate figures.

    • Y
      1 / 1

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

      10723 - The company reports that it has 10,723ha of natural forest within outgrower scheme.

    • N
      0 / 1

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

    • N
      0 / 1

      20. Conservation set-aside area, including HCV area (ha)?

    • N
      0 / 1

      21. Area of Intact Forest Landscape (ha)?

    • P
      0.5 / 1

      22. Number of Forest Management Units (FMUs)?

      4 - The company reports that it has a total of four FMUs; three in Open Bay Timber Ltd and one in Tasman Pine Forests Ltd. However, it is unclear if this covers all operations.

    • N
      0 / 1

      23. Maps of forest management units (FMUs)?

      The company only reports names and centroid coordinates of the FMUs. However, no geo-referenced maps are reported, and it is unclear if this information covers the company's entire operations.

    • P
      0.5 / 1

      24. Forest management plans available for all FMUs?

      The company has management plan only for some forest management plans.

    • P
      0.75 / 1

      25. Monitoring of forest management plan implementation available?

      [Externally verified] The company has monitoring plan only for some forest management plans.

    • N

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

      This indicator is disabled as the company reports that it does not operate in a country currently covered by Open Timber Portal.

    • N

      27. 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 reports that it does not operate in a country currently covered by Open Timber Portal.

    • N

      28. 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 reports that it does not operate in a country currently covered by Open Timber Portal.

    • N
      0 / 1

      29. Maps of all third-party supplying FMUs?

    • N
      0 / 1

      30. Number of company owned sawmills?

      1 - The company has one sawmill, operated by its subsidiary PT Kutai Timber Indonesia. However, this information is undated.

    • P
      0.5 / 1

      31. Names and locations of company owned sawmills?

      The company provides the name and location of its one sawmill. However, information on the number of sawmills is undated so only partial points can be awarded.

    • N

      32. Number of company-owned pulp and paper mills?

      This indicator is disabled as the company reports that it does not own any pulp or paper mills.

    • N

      33. Names and locations of company-owned pulp and paper mills?

      This indicator is disabled as the company reports that it does not own any pulp or paper mills.

    • N
      0 / 1

      34. Reports total volumes (or percentages) sourced by company-owned sawmills that come from company's own operations and third-parties?

    • N

      35. Reports total volumes (or percentages) sourced by company-owned pulp and paper mills that come from company's own operations and third-parties?

      This indicator is disabled as the company reports that it does not own any pulp or paper mills.

    • N
      0 / 1

      36. Number of third party supplying mills?

    • N
      0 / 1

      37. Names and locations of all third party supplying mills?

    • N
      0 / 1

      38. Reports total volume (or percentages) sourced from third-party supplying mills that come from the supplying mills' own operations and third parties?

    • Y
      1 / 1

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

      The company reports that it has a due diligence procedure to trace raw materials to the country of origin.

    • N
      0 / 1

      40. Percentage of supply traceable to country of harvest?

    • Y
      1 / 1

      41. Procedures to trace raw materials to FMU level?

      The company reports the procedures to trace raw materials to the FMU level.

    • N
      0 / 1

      42. Percentage of supply traceable to FMU level?

  • Certification standards Certification standards
    1.16 / 9 12.9%
    • Organisation: 0 / 0 0%
    • Policy: 0 / 4 0%
    • Practice: 1.2 / 5 23.2%
    • Self-reported: 1.2 / 5 23.2%
    • External: 0 / 5 0%
    • Certified: 0 / 5 0%
    • N
      0 / 1

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

      The company reports that approximately 48,000 ha forests in Japan are 100% SGEC (Sustainable Green Ecosystem Council) certified. However, no time-bound targets for overseas plantations could be found.

    • P
      0.8 / 1

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

      79.67% - The company has reported the total percentage of areas verified as being in legal compliance by a third party (SGEC, FSC FM/COC, CW/FM, and PHPL certified). Data as of 2022.

    • N
      0 / 1

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

    • N
      0 / 1

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

      The company reports that 100% of wood supply was categorised by the company as sustainable. However, the company's definition of 'sustainable' wood does not confirm that it has been verified as being in legal compliance by a third party.

    • P
      0.2 / 1

      47. Percentage area (ha) FSC FM certified?

      19.64% - The company reports that Open Bay Timber (OBT) has 19,920 ha of FSC-FM-certified area and Tasman Pine Forest (TPF) has 36,565 ha of FSC-FM-certified area out of a total managed area of 287,590 ha.

    • N
      0 / 1

      48. Time-bound plan for achieving 100% FSC FM certification of FMUs within 10 years?

    • N
      0 / 1

      49. Percentage of wood/wood fibre supply (tonnes) from all suppliers that comes from FSC FM certified areas?

    • N
      0 / 1

      50. Commitment to source only wood/wood fibre that meets FSC Controlled Wood and/or PEFC Controlled Sources requirements?

    • P
      0.17 / 1

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

      47735 (16.6%) - The company reports that 47,735 ha of the area is SGEC-certified out of the total managed area of 287,590 ha.

  • Deforestation and biodiversity Deforestation and biodiversity
    7.9 / 26 30.4%
    • Organisation: 0 / 2 0%
    • Policy: 4 / 16 25%
    • Practice: 3.9 / 8 48.8%
    • Self-reported: 0 / 8 0%
    • External: 1.5 / 8 18.8%
    • Certified: 2.4 / 8 30%
    • N
      0 / 1

      52. Commitment to zero conversion of natural ecosystems?

    • N
      0 / 1

      53. Commitment to zero conversion of natural ecosystems applies to all suppliers?

    • Y
      1 / 1

      54. Commitment to zero deforestation?

      The company makes this commitment through the FSC Policy for Association (FSC-POL-01-004 V3-0). Full points have therefore been awarded on the basis of the company's FSC certification.

    • N
      0 / 1

      55. Commitment to zero deforestation applies to all suppliers?

    • P
      0.5 / 1

      56. Criteria and cut-off date for defining deforestation and/or ecosystem conversion?

      The company makes this commitment through the FSC Policy for Association (FSC-POL-01-004 V3-0). As the policy requirements do not fully meet the SPOTT indicator criteria partial points have been awarded on the basis of the company's partial FSC FM or CoC certification.

    • N
      0 / 1

      57. Criteria and cut-off date for defining deforestation in supplier operations?

    • N
      0 / 1

      58. Evidence of monitoring deforestation and/or ecosystem conversion?

    • N
      0 / 1

      59. Evidence of monitoring deforestation and/or ecosystem conversion in supplier operations?

    • N
      0 / 1

      60. Amount of deforestation and/or ecosystem conversion recorded in own operations since cut-off date?

    • N
      0 / 1

      61. Amount of deforestation and/or ecosystem conversion recorded in supplier operations since cut-off date?

    • N
      0 / 1

      62. Commitment to restoration of deforestation/conversion in own operations since cut-off date?

    • N
      0 / 1

      63. Commitment to restoration of deforestation/conversion in supplier operations since cut-off date?

    • P
      0.75 / 1

      64. Implementing a landscape or jurisdictional level approach?

      [Externally verified] Points for external verification have been awarded on the basis of the company making this commitment through the FSC Principles and Criteria (FSC-STD-01-001 V5-2 EN) and the PEFC International Standard (PEFC ST 1003:2018). As the requirements of these certifications do not fully meet the SPOTT indicator criteria partial points have therefore been awarded on the basis of the company's FSC/PEFC certified landbank.

    • P
      0.5 / 1

      65. Biodiversity policy?

      The company has an environmental policy and a biodiversity conservation policy (specifically for company-owned forests in Japan). However, the company does not set time-bound target that shows impact of this policy/commitment on biodiversity/species/habitats.

    • N
      0 / 1

      66. Biodiversity policy applies to all suppliers?

    • P
      0.75 / 1

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

      [Externally verified] Limited, externally verified points have been awarded on the basis of the company's FSC FM (FSC-STD-01-001 V5-2) and PEFC FM (PEFC ST 1003:2018) certifications as the requirements do not fully meet the SPOTT indicator criteria.

    • Y
      +
      1 / 1
      0.2 / 1

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

      Comprehensive, externally verified points have been awarded on the basis of the company's FSC FM (FSC-STD-01-001 V5-2) and PEFC FM (PEFC ST 1003:2018) certifications as the requirements fully meet the SPOTT indicator criteria.

    • N
      0 / 1

      69. Commitment to no hunting or only sustainable hunting of species?

    • N
      0 / 1

      70. Commitment to no hunting or only sustainable hunting of species applies to all suppliers?

    • P
      0.5 / 1

      71. Commitment to protect forest areas from illegal activities?

      The company has a commitment to prevent illegal logging. However, it does not commit to protecting forest areas from other illegal activities.

    • P
      0.5 / 1

      72. Commitment to protect forest areas from illegal activities applies to all suppliers?

      The company's commitment to preventing illegal logging also applies to suppliers. However, it does not commit to protecting forest areas from other illegal activities.

    • Y
      +
      1 / 1
      0.2 / 1

      73. Evidence of protecting forest areas from illegal activities?

      Comprehensive, externally verified points have been awarded on the basis of the company's FSC FM (FSC-STD-01-001 V5-2) and PEFC FM (PEFC ST 1003:2018) certifications as the requirements fully meet the SPOTT indicator criteria.

    • Y
      1 / 1

      74. Commitment to no use of genetically modified organisms?

      The company makes this commitment through the FSC Policy for Association (FSC-POL-01-004 V3-0). Full points have therefore been awarded on the basis of the company's FSC certification.

    • N
      0 / 1

      75. Commitment to no use of genetically modified organisms applies to all suppliers?

  • HCV, HCS and impact assessments HCV, HCS and impact assessments
    2.5 / 11 22.7%
    • Organisation: 0 / 0 0%
    • Policy: 2.5 / 6 41.7%
    • Practice: 0 / 5 0%
    • Self-reported: 0 / 5 0%
    • External: 0 / 5 0%
    • Certified: 0 / 5 0%
    • Y
      1 / 1

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

      The company makes this commitment through the FSC Policy for Association (FSC-POL-01-004 V3-0). Full points have therefore been awarded on the basis of the company's FSC certification.

    • N
      0 / 1

      77. Commitment to conduct High Conservation Value (HCV) assessments applies to all suppliers?

    • N
      0 / 1

      78. High Conservation Value (HCV) assessments available?

    • N
      0 / 1

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

    • Y
      1 / 1

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

      The company commits to apply the HCS Approach, as defined by the HCS Approach Toolkit.

    • N
      0 / 1

      81. Commitment to the High Carbon Stock (HCS) Approach applies to all suppliers?

    • N
      0 / 1

      82. High Carbon Stock (HCS) assessments available?

    • N
      0 / 1

      83. Peer review of all High Carbon Stock (HCS) assessments undertaken since April 2015 by the HCSA Quality Assurance Process?

    • P
      0.5 / 1

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

      The company makes this commitment through SVLK certification requirements. Partial points have been awarded as the requirements do not full meet the SPOTT scoring criteria.

    • N
      0 / 1

      85. Commitment to conduct social and environmental impact assessments (SEIAs) applies to all suppliers?

    • N
      0 / 1

      86. Social and environmental impact assessments (SEIAs) available, and associated management and monitoring plans?

    • N

      87. 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 reports that it does not operate in a country currently covered by Open Timber Portal.

  • Soils, fire and GHG emissions Soils, fire and GHG emissions
    6.32 / 24 26.3%
    • Organisation: 1 / 6 16.7%
    • Policy: 1.5 / 10 15%
    • Practice: 3.8 / 8 47.8%
    • Self-reported: 0.5 / 8 6.3%
    • External: 0 / 8 0%
    • Certified: 3.3 / 8 41.5%
    • N
      0 / 1

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

    • N
      0 / 1

      89. Commitment to no planting on peat of any depth applies to all suppliers?

    • N
      0 / 1

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

    • N
      0 / 1

      91. Implementation of commitment to no planting on peat of any depth?

    • N
      0 / 1

      92. Commitment to best management practices for soils and peat?

    • N
      0 / 1

      93. Commitment to best management practices for soils and peat applies to all suppliers?

    • P
      +
      0.75 / 1
      0.2 / 1

      94. Evidence of best management practices for soils and peat?

      Limited, externally verified points have been awarded on the basis of the company's FSC FM certification (FSC-STD-01-001 V5-2) and PEFC FM certification (PEFC ST 1003:2018) as the requirements do not fully meet the SPOTT indicator criteria. The company commits to best management practices for peat. The company has developed a peatland management model and the infrastructure technology necessary to manage peatlands and carry out surveys.

    • N
      0 / 1

      95. Commitment to reduced impact logging?

    • N
      0 / 1

      96. Commitment to reduced impact logging applies to all suppliers?

    • Y
      +
      1 / 1
      0.2 / 1

      97. Evidence of implementing reduced impact logging practices?

      Comprehensive, externally verified points have been awarded on the basis of the company's FSC FM certification (FSC-STD-01-001 V5-2) as the requirements fully meet the SPOTT indicator criteria. Additional points have been awarded according to the percent of company landbank certified by FSC.

    • N
      0 / 1

      98. Commitment to zero burning?

    • N
      0 / 1

      99. Commitment to zero burning applies to all suppliers?

    • Y
      +
      1 / 1
      0.17 / 1

      100. Evidence of fire monitoring and management?

      Comprehensive, externally verified points have been awarded on the basis of the company's PEFC FM certification (PEFC ST 1003:2018) as the requirements fully meet the SPOTT indicator criteria. Additional points have been awarded according to the percent of company landbank certified by PEFC.

    • P
      0.5 / 1

      101. Details/number of hotspots/fires in company FMUs?

      1 - The company only states that in 2022, it recorded one case of fire under the company's management in Papua New Guinea and none in New Zealand. However, no information on fire in Japan and Indonesia is found.

    • N
      0 / 1

      102. Details/number of hotspots/fires in suppliers operations?

    • P
      0.5 / 1

      103. Time-bound commitment to reduce greenhouse gas (GHG) emissions intensity?

      The company commits to reduce Scope 1 & 2 GHG emissions by 54.6% and Scope 3 emissions by 16% (compared to 2017 base year) by 2030. However, the target is not intensity-based.

    • P
      0.5 / 1

      104. GHG emissions intensity?

      The company reports a GHG emission intensity of 9,755,928 t-CO2e in 2022. However, the reported emission figures not in intensity and its unclear if the figure related to forestry operations.

    • N
      0 / 1

      105. GHG emissions from land use change in company's own operations (scope 1)?

    • N
      0 / 1

      106. GHG emissions from land use change in supplier operations (scope 3)?

    • P
      0.5 / 1

      107. Progress towards commitment to reduce GHG emissions intensity?

      The company reports that its GHG emissions have decreased between 2020-2022, however these figures are not intensity-based.

    • Y
      1 / 1

      108. Methodology used to calculate GHG emissions?

      The company uses the GHG Protocol methodology to calculate GHG emissions.

  • Water, chemical and pest management Water, chemical and pest management
    6.85 / 16 42.8%
    • Organisation: 0.5 / 1 50%
    • Policy: 1 / 7 14.3%
    • Practice: 5.4 / 8 66.9%
    • Self-reported: 0.8 / 8 9.4%
    • External: 1 / 8 12.5%
    • Certified: 3.6 / 8 45%
    • N

      109. Time-bound commitment to improve water use intensity?

      This indicator is disabled as the company reports that it does not own any pulp or paper mills OR only trades wood/wood fibre.

    • N

      110. Water use intensity?

      This indicator is disabled as the company reports that it does not own any pulp or paper mills OR only trades wood/wood fibre.

    • N

      111. Progress towards commitment on water use intensity?

      This indicator is disabled as the company reports that it does not own any pulp or paper mills OR only trades wood/wood fibre.

    • N

      112. Time-bound commitment to improve water quality (BOD or COD)?

      This indicator is disabled as the company reports that it does not own any pulp or paper mills OR only trades wood/wood fibre.

    • N

      113. Progress towards commitment on water quality (BOD or COD)?

      This indicator is disabled as the company reports that it does not own any pulp or paper mills OR only trades wood/wood fibre.

    • N

      114. Treatment of pulp and paper mill effluent?

      This indicator is disabled as the company reports that it does not own any pulp or paper mills OR only trades wood/wood fibre.

    • P
      0.75 / 1

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

      The company reports that it treats wastewater biologically to control the amount of water necessary for the dilution of factory wastewater.

    • N

      116. Proportion of processing facilities with closed-loop water treatment system?

      This indicator is disabled as the company reports that it does not own any pulp or paper mills.

    • P
      0.5 / 1

      117. Commitment to protect natural waterways through buffer zones?

      The company has a riparian management manual for the preservation of natural waterways. However, it does not cover all operations.

    • Y
      +
      1 / 1
      0.2 / 1

      118. Implementation of commitment to protect natural waterways through buffer zones?

      Comprehensive, externally verified points have been awarded on the basis of the company's FSC FM certification (FSC-STD-01-001 V5-2) as the requirements fully meet the SPOTT indicator criteria. Additional points have been awarded according to the percent of company landbank certified by FSC.

    • P
      0.5 / 1

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

      The company commits to minimise the use of chemicals but does not mention chemical fertilisers or pesticides.

    • N
      0 / 1

      120. Commitment to minimise the use of chemicals, including pesticides and chemical fertilisers, applies to all suppliers?

    • N

      121. Evidence of eliminating chlorine and chlorine compounds for bleaching?

      This indicator is disabled as the company reports that it does not own any pulp or paper mills OR only trades wood/wood fibre.

    • N
      0 / 1

      122. Commitment to no use of World Health Organisation (WHO) Class 1A and 1B pesticides?

    • N
      0 / 1

      123. Commitment to no use of World Health Organisation (WHO) Class 1A and 1B pesticides applies to all suppliers?

    • N
      0 / 1

      124. Commitment to no use of chemicals listed under the Stockholm Convention and Rotterdam Convention?

    • N
      0 / 1

      125. Commitment to no use of chemicals listed under the Stockholm Convention and Rotterdam Convention applies to all suppliers?

    • P
      0.5 / 1

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

      The company has provided a list of chemicals used in Japan and overseas plants. However, it is unclear if this information covers all operations.

    • Y
      +
      1 / 1
      0.2 / 1

      127. Implementation of commitment to minimise inorganic fertiliser usage?

      Comprehensive, externally verified points have been awarded on the basis of the company's FSC FM certification (FSC-STD-01-001 V5-2) as the requirements fully meet the SPOTT indicator criteria. Additional points have been awarded according to the percent of company landbank certified by FSC.

    • Y
      +
      1 / 1
      0.2 / 1

      128. Integrated Pest Management (IPM) approach?

      Comprehensive, externally verified points have been awarded on the basis of the company's FSC FM certification (FSC-STD-01-001 V5-2) as the requirements fully meet the SPOTT indicator criteria. Additional points have been awarded according to the percent of company landbank certified by FSC.

    • Y
      1 / 1

      129. Waste management system in place to avoid negative impacts?

      [Externally verified] The company reported that it has established a set of industrial waste management regulations covering appropriate disposal, reduction, recycling and reuse of industrial, as well as manufacturing regulations stipulating standards essential for production activities.

  • Community, land and labour rights Community, land and labour rights
    24.07 / 37 65.1%
    • Organisation: 3.5 / 5 70%
    • Policy: 14.5 / 21 69.1%
    • Practice: 6.1 / 11 55.2%
    • Self-reported: 1.5 / 11 13.6%
    • External: 1 / 11 9.1%
    • Certified: 3.6 / 11 32.5%
    • Y
      1 / 1

      130. Commitment to human rights?

      The company makes this commitment through the FSC Policy for Association (FSC-POL-01-004 V3-0). Full points have therefore been awarded on the basis of the company's FSC certification.

    • Y
      1 / 1

      131. Commitment to human rights applies to all suppliers?

      The company commits all suppliers to the Universal Declaration of Human Rights.

    • P
      0.75 / 1

      132. Progress on human rights commitment ?

      The company provides lectures about human rights in its new employee training in Japan and also require all employees with access to the intranet to take the ""Work and Human Rights"" module in e-learning every year.

    • Y
      1 / 1

      133. Commitment to respect Indigenous Peoples' and local communities' rights?

      The company makes this commitment through the FSC Policy for Association (FSC-POL-01-004 V3-0). Full points have therefore been awarded on the basis of the company's FSC certification.

    • Y
      1 / 1

      134. Commitment to Indigenous Peoples' and local communities' rights applies to all suppliers?

      The company commits all suppliers to the ILO Indigenous and Tribal Peoples Convention (no. 169) or UN Declaration on the Rights of Indigenous Peoples.

    • Y
      1 / 1

      135. Commitment to respect legal and customary land tenure rights?

      The company makes this commitment through the FSC Policy for Association (FSC-POL-01-004 V3-0) AND SVLK. As the requirements of these certifications do not fully meet the SPOTT indicator criteria partial points have been awarded on the basis of the company's FSC certification and SVLK certification. The company commits to the FAO Voluntary Guidelines on the Responsible Governance of Tenure of Land, Fisheries and Forests in the Context of National Food Security.

    • Y
      1 / 1

      136. Commitment to legal and customary land rights applies to all suppliers?

      The company commits all suppliers to the FAO Voluntary Guidelines on the Responsible Governance of Tenure of Land, Fisheries and Forests in the Context of National Food Security.

    • Y
      1 / 1

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

      The company commits to free, prior, and informed consent.

    • N
      0 / 1

      138. Commitment to free, prior and informed consent (FPIC) applies to all suppliers?

    • N
      0 / 1

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

    • Y
      1 / 1

      140. Examples of local stakeholder engagement to prevent conflicts?

      [Externally verified] The company has provided grievance mechanisms in Japan and in overseas. The company also engages with the local communities through conducting local visits.

    • N
      0 / 1

      141. Details of process for addressing land conflicts available?

    • N
      0 / 1

      142. Supports the inclusion of women across forestry operations, including addressing barriers faced?

    • N

      143. 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 reports that it does not operate in a country currently covered by Open Timber Portal.

    • N
      0 / 1

      144. Commitment to enable sustainable use of non-timber forest products (NTFPs) by local communities?

    • Y
      1 / 1

      145. Commitment to provide essential community services and facilities ?

      The company is committed to support environmental, social welfare, children's educational, cultural, artistic and other activities.

    • Y
      +
      1 / 1
      0.2 / 1

      146. Progress on commitment to provide essential community services and facilities?

      Comprehensive, externally verified points have been awarded on the basis of the company's FSC FM certification (FSC-STD-01-001 V5-2) as the requirements fully meet the SPOTT indicator criteria. Additional points have been awarded according to the percent of company landbank certified by FSC.

    • P
      0.5 / 1

      147. Commitment to provide business/work opportunities for local communities?

      The company reports that it provides business/work opportunities for local communities. However, no clear commitment could be found.

    • N

      148. 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 reports that it does not operate in a country currently covered by Open Timber Portal.

    • Y
      1 / 1

      149. Commitment to Fundamental ILO Conventions or Free and Fair Labour Principles?

      The company makes this commitment through the FSC Policy for Association (FSC-POL-01-004 V3-0). Full points have therefore been awarded on the basis of the company's FSC certification.

    • Y
      1 / 1

      150. Commitment to Fundamental ILO Conventions or Free and Fair Labour Principles applies to all suppliers?

      The company commits suppliers to Fundamental ILO Conventions and Free and Fair Labour Principles.

    • Y
      +
      1 / 1
      0.17 / 1

      151. Progress on commitment to respect all workers' rights?

      Comprehensive, externally verified points have been awarded on the basis of the company's FSC FM (FSC-STD-01-001 V5-2) and PEFC FM (PEFC ST 1003:2018) certifications as the requirements fully meet the SPOTT indicator criteria. Additional points have been awarded according to the percent of company landbank certified by either FSC or PEFC, whichever is highest.

    • Y
      1 / 1

      152. Commitment to eliminate gender related discrimination with regards to employment?

      The company commits to eliminating gender-related discrimination with regard to employment.

    • Y
      1 / 1

      153. Commitment to eliminate gender related discrimination with regards to employment applies to all suppliers?

      The company's commitment to eliminating gender-related discrimination with regard to employment applies to all suppliers.

    • P
      0.75 / 1

      154. Progress on commitment to eliminate gender related discrimination with regards to employment?

      The company has incorporated classes about harassment in its training for general managers and a ""Harassment Hotline"" has been set up to ensure consultations are handled appropriately.

    • Y
      1 / 1

      155. Percentage or number of temporary employees?

      5139 (18.97%) - The company reports the number of temporary employees as 5,139.

    • Y
      1 / 1

      156. Reports gender balance of employees?

      23.1% - The company has reported the percentage of female employees (non-consolidated) within the company (23.1%), in subsidiary companies (domestic subsidiary) in Japan (34.6%) and subsidiary companies overseas (28.2%) for 2022.

    • P
      0.5 / 1

      157. Commitment to pay a living wage?

      The company only commits to paying minimum wages. However, no information on living wage could be found.

    • P
      0.5 / 1

      158. Commitment to pay a living wage applies to all suplliers?

      Only a commitment to paying minimum wages apply to all suppliers.

    • N
      0 / 1

      159. Progress on commitment to pay a living wage?

    • P
      0.5 / 1

      160. Reporting of salary by gender?

      The company reports average annual salary by gender (non-consolidated). However, it does not cover all operations.

    • P
      0.5 / 1

      161. Commitment to address occupational health and safety?

      The company makes this commitment through the FSC Chain of Custody Certification Standard (FSC-STD-40-004 V3-1), the PEFC International Chain of Custody Standard (PEFC ST 2002:2020) and SVLK certification requirements. Partial points have been awarded as the requirements do not full meet the SPOTT scoring criteria. The company also has its own commitment to address occupational health and safety. However, no reference to the ILO Code of Practice on Safety and Health in Forestry Work was found.

    • P
      0.5 / 1

      162. Commitment to address occupational health and safety applies to all suppliers?

      The company commit to address occupational health and safety applies to all suppliers. However, no reference to the ILO Code of Practice on Safety and Health in Forestry Work was found.

    • Y
      +
      1 / 1
      0.2 / 1

      163. Provision of personal protective equipment and related training?

      Comprehensive, externally verified points have been awarded on the basis of the company's PEFC FM certification (PEFC ST 1003:2018) as the requirements fully meet the SPOTT indicator criteria. Additional points have been awarded according to the percent of company landbank certified by PEFC.

    • P
      0.5 / 1

      164. Time lost due to work-based injuries?

      0.42 - The company reports a lost-time injury frequency rate as 0.42 (Non-Consolidated). However, it is unclear if it covers all operations.

    • P
      0.5 / 1

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

      5 - The company reports five occupational injuries in 2022. However, it is unclear if this covers all operations.

  • Smallholders and suppliers Smallholders and suppliers
    4.25 / 7 60.7%
    • Organisation: 0 / 0 0%
    • Policy: 2.5 / 4 62.5%
    • Practice: 1.8 / 3 58.3%
    • Self-reported: 0 / 3 0%
    • External: 1.8 / 3 58.3%
    • Certified: 0 / 3 0%
    • N
      0 / 1

      166. Commitment to support smallholders?

    • P
      0.75 / 1

      167. Programme to support outgrower scheme and/or independent smallholders?

      [Externally verified] The company reports that it helps local communities to achieve FSC certification and provided 380,000 free seedlings in the fiscal year 2022. However, the information is limited and externally verified.

    • N
      0 / 1

      168. Number or percentage of outgrower scheme and/or independent smallholders involved in programme?

    • Y
      1 / 1

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

      The company reports that it carries out due diligence on timber procurement to ensure that the procurement is performed in a sustainable manner.

    • Y
      1 / 1

      170. Number or percentage of non-smallholder suppliers assessed and/or engaged on compliance with company's policy and/or legal requirements?

      [Externally verified] 171 (100%) - The company reports that all its timber suppliers were surveyed in 2022. The information is externally assured by KPMG.

    • P
      0.5 / 1

      171. Suspension or exclusion criteria for suppliers?

      The company makes this commitment through the FSC Chain of Custody Certification Standard (FSC-STD-40-004 V3-1) and PEFC International Chain of Custody Standard (PEFC ST 2002:2020). Partial points have been awarded as the requirements do not full meet the SPOTT scoring criteria.

    • Y
      1 / 1

      172. Timebound action plans (including Key Performance Indicators) for suppliers to be in compliance with timber and pulp sourcing commitments?

      The company had achieved 100% handling of sustainable timber and wood products based on its due diligence in wood procurement.

    • N
      -

      173. Proportion of supply from suppliers that is verified as deforestation and/or conversion-free (DCF)?

  • Governance and grievances Governance and grievances
    5.25 / 7 75%
    • Organisation: 0 / 0 0%
    • Policy: 4.5 / 5 90%
    • Practice: 0.8 / 2 37.5%
    • Self-reported: 0.8 / 2 37.5%
    • External: 0 / 2 0%
    • Certified: 0 / 2 0%
    • Y
      1 / 1

      174. Commitment to ethical conduct and prohibition of corruption?

      The company commits to ethical conduct and prohibition of corruption.

    • Y
      1 / 1

      175. Commitment to ethical conduct and prohibition of corruption applies to all suppliers?

      The company commitment to ethical conduct and prohibition of corruption applies to all suppliers.

    • P
      0.75 / 1

      176. Progress on commitment to ethical conduct and prohibition of corruption?

      The company states that it educate the employees by conducting online hearings and trainings. However, the information is not externally verified.

    • N

      177. 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 reports that it does not operate in a country currently covered by Open Timber Portal.

    • Y
      1 / 1

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

      The company has reported its tax strategy. Tax affairs is led by the director in charge of financial matters. Both the Corporate Planning Department and the Risk Management Committee are also responsible to monitors the tax.

    • N

      179. 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 reports that it does not operate in a country currently covered by Open Timber Portal.

    • P
      0.5 / 1

      180. Whistleblowing procedure?

      The company has a whistleblowing mechanism but does not provide a flowchart or clear description of the steps taken.

    • Y
      1 / 1

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

      The company has a grievance mechanisms across its operations which is accessible to both internal and external stakeholders.

    • N
      0 / 1

      182. Details of complaints and grievances disclosed?

Media monitor: Sumitomo Forestry

SPOTT monitors global media sources for coverage of assessed companies. The media monitor gathers reports about specific activities related to the assessment indicator categories. ZSL does not assess or score the validity of media coverage, but users can explore the media monitor to provide context on implementation, and infer risks associated with reported operations on the ground. The media monitor undergoes a full update at the time of publishing an assessment round, with ad-hoc updates throughout the year. This is not an exhaustive list of all media reports relevant to the company.

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