Sumitomo Forestry

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

The company has separate Forestry Group Environmental and Procurement Policies and a Code of Conduct that cover aspects of sustainability.

2. Sustainability policy or commitment applies to direct and third-party suppliers?

The company has separate Forestry Group Environmental and Procurement Policies and a Code of Conduct that cover aspects of sustainability. However only the Code of Conduct applies to suppliers.

3. High-level position of responsibility for sustainability?

President and CEO who chairs the CSR Risk Management Committee; Environmental Management Officer.

4. Sustainability report published within last two years?

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

GRI, UNGC.

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

The company cooperates with several Japanese towns and villages (e.g. Maniwa, Kyotamba) on sustainable forestry management activities and participated in various regeneration projects in Indonesia.

7. Lists countries and operations?

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

20471 - Figure complicated to calculate, based on percentage of natural forests in Japan using % figures from graphs.

9. Total area of forest plantation (ha)?

250936 - Figure had to be calculated using multiple sources and so may not be accurate.

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

1211 - Figure does not cover all outgrower scheme area.

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

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

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

13. Area of Intact Forest Landscape (ha)?

This indicator is disabled as the company has informed ZSL that it does not have Intact Forest Landscape within its landbank.

14. Number of Forest Management Units (FMUs)?

15. Maps of forest management units (FMUs)?

Only one of the company's FMUs could be found in Global Forest Watch.

16. Forest management plans available for all FMUs?

17. Monitoring of forest management plan implementation?

18. Number of company owned pulp and paper mills?

This indicator is disabled as the company has informed ZSL that it does not own pulp or paper mills.

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

This indicator is disabled as the company has informed ZSL that it does not own pulp or paper mills.

20. Number of company owned sawmills?

21. Maps or addresses of company owned sawmills?

22. Commitment to zero conversion of natural forest?

23. Zero conversion commitment applies to outgrower scheme and independent suppliers?

24. Commitment to minimise the impact of logging roads?

25. 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.

26. Evidence of monitoring deforestation?

The monitoring of forest extent and condition is covered by FSC Principles and Criteria (FSC-POL-01-004 V2-0 EN). Full points have therefore been awarded for this indicator on the basis of the company's FSC certified landbank, which stands at 49,054 ha (17.7% of total operational area).

27. Amount of deforestation recorded?

28. Commitment to biodiversity conservation?

29. Commitment to set aside areas for conservation?

30. Examples of habitat management and/or habitat restoration of set-aside areas?

The management and restoration of habitat is covered by FSC Principles and Criteria (FSC-POL-01-004 V2-0 EN). Full points have therefore been awarded for this indicator on the basis of the company's FSC certified landbank, which stands at 49,054 ha (17.7% of total operational area).

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

The maintenance and restoration of appropriate landscape values, including environmental and economic resilience is covered by FSC Principles and Criteria (FSC-POL-01-004 V2-0 EN). However, this commitment does not extend to active engagement with stakeholders outside of the Forest Management Unit. Half points have therefore been awarded for this indicator on the basis of the company's FSC certified landbank, which stands at 49,054 ha (17.7% of total operational area).

32. Commitment to protect 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.

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

34. 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).

35. Commitment to only use alien species where impacts can be controlled?

36. Examples of species conservation activities?

The protection of rare, threatened and endangered species and their habitats, and the maintenance of ecological functions and values is covered by FSC Principles and Criteria (FSC-POL-01-004 V2-0 EN). Full points have therefore been awarded for this indicator on the basis of the company's FSC certified landbank, which stands at 49,054 ha (17.7% of total operational area).

37. 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.

38. HCV commitment applies to outgrower scheme and independent suppliers?

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.

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

40. 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.

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

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

43. High Carbon Stock (HCS) assessments available?

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

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

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

47. Commitment to reduced impact logging?

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

49. Commitment on peatland planting applies to outgrower scheme and independent suppliers?

This indicator is disabled as the company has informed ZSL that it does not have suppliers with landbank on peat.

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

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

The company is working on revegetating degraded peatlands in Indonesia and sustaining water levels in plantation areas with peat swamps. The conservation of soils, including control of erosion and minimising damage during operations is covered by FSC Principles and Criteria (FSC-POL-01-004 V2-0 EN).

52. Commitment to zero burning?

53. Commitment to zero burning applies to outgrower scheme and independent suppliers?

54. 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.

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

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

The company has a target to achieve at least 1% reduction per year on average per production volume in FY 2015 - 2020, however the commitment does not cover all of its timber operations.

57. Progress towards reducing GHG emission intensity?

The company reports progress against its target however their target does not cover all of their timber operations.

58. Report GHG emissions from land use change?

59. Methodology used to calculate GHG emissions?

GHG Protocol and 'international accounting tools'.

60. Time-bound commitment to improve water quality?

61. Progress towards commitment on water quality?

The company reports BOD and COD levels in 2016 but they do not have a commitment or report progress over time.

62. 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 their operations.

63. Evidence of treatment of pulp and paper mill effluent?

This indicator is disabled as the company has informed ZSL that it does not own pulp or paper mills.

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

65. Time-bound commitment to improve water use?

This indicator is disabled as the company has informed ZSL that it does not own pulp or paper mills.

66. Progress towards commitment on water use?

This indicator is disabled as the company has informed ZSL that it does not own pulp or paper mills.

67. Commitment to eliminate chlorine and chlorine compounds for bleaching?

This indicator is disabled as the company has informed ZSL that it does not own pulp or paper mills.

68. Evidence of minimising or recycling solid waste produced during sawmilling processes?

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

The company only states it makes an effort to reduce the use of hazardous chemicals.

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

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

72. Integrated Pest Management (IPM) approach?

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

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

74. Commitment to human rights, referencing the UN Declaration of Human Rights or UN Guiding Principles on Business and Human 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 defines human rights as those established through the UN Declaration of Human Rights.

75. Commitment to human rights applies to outgrower scheme and independent suppliers?

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.

76. 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.

77. 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.

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

79. FPIC commitment applies to independent suppliers?

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

81. Details of process for addressing land conflicts available?

82. Commitment to mitigate impacts on food security?

83. Commitment to provide essential community services and facilities?

FSC Principles and Criteria (FSC-POL-01-004 V2-0 EN) require certified organisations to contribute to the social and economic development of local communities. Full points have therefore been awarded for this indicator on the basis of the company's FSC certified landbank, which stands at 49,054 ha (17.7% of total operational area).

84. Commitment to respect all workers' rights?

85. Reference to Fundamental ILO Conventions?

The company has committed to not be directly or indirectly involved in the violation of any of the ILO Core Conventions. This commitment is made through the FSC Policy for Association (FSC-POL-01-004).

86. Total number of employees?

17802

87. Percentage or number of temporary employees?

891 - Report contract employees/temporary contract employees both for domestic group companies and 'non-consolidated'. It is unclear whether this covers all of the company's operations.

88. Percentage or number of women employees?

20.1% - The company also reports the percentage of female employees in management positions within Sumitomo Forestry (3.2%) and in its domestic subsidiaries (5%), but it is unclear whether this covers all of their operations.

89. Commitment to pay minimum wage?

90. 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 do not refer to the ILO Code of Practice on Safety and Health in Forestry Work.

91. Time lost due to work-based injuries?

0.3 - The company reports the number of occupational injuries in company owned forests, new construction sites and other operations, but only reports a lost-time injury frequency rate for 'non-consolidated' . It is unclear what this figure covers.

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

0 - The company only reports a 'non-consolidated' figure and it is unclear what this covers.

93. Provision of personal protective equipment and related training?

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

219165 (79.2%) - Sum of operations SGEC, FSC FM/COC, CW/FM and PHPL certified.

95. Percentage wood/wood fibre supply verified as being in legal compliance by a third party?

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

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96. Time-bound plan for achieving 100% FSC FM certification of FMUs?

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

98. Percentage area (ha) FSC FM certified?

49054 (17.7%) - 12,854 ha FSC certified under Open Bay Timber (OBT) company in Papua New Guinea and 36,200 ha under Tasman Pine Forest (TPF) in New Zealand.

99. 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 do not report the percentage of supply certified.

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100. Percentage area (ha) PEFC certified?

46213 (23.5%) - SGEC certified area of company-owned forests in Japan. Percentage calculation excludes the company's land that is FSC certified and land in Papua New Guinea where currently no PEFC endorsed certification exists.

101. Programme to support outgrower scheme smallholders?

Provide seedlings, achieve FSC certification, sustainable forest management programs.

102. 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.

103. 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.

104. Suspension or exclusion criteria for suppliers?

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

110 - The company states that its Timber Procurement Committee conducted surveys at 110 suppliers for import timber to confirm their compliance and that an on-site inspection was undertaken in Romania in April 2017.

106. Commitment to ethical conduct and prohibition of corruption?

107. Whistleblowing procedure?

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

108. Own grievance or complaints system?

109. Grievance or complaints system is accessible to internal and external stakeholders?

The system is only available to company employees.

110. Details of grievances disclosed?

The company provides limited detail on grievances and actions taken.