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"SMBC Forest" special website

SMBC Forest Landscape Photo 1
SMBC Forest Landscape Photo 1
SMBC Forest Landscape Photo 2
SMBC Forest Landscape Photo 3

Why SMBC Nurtures Forests

Challenges related to forests are inherent social issues in Japan, including environmental conservation and the revitalization of local economies and communities.

SMBC’s Forests is owned by SMBC Group itself, and by striving for its conservation and restoration, our goal is to extend the benefits it provides to surrounding communities while enhancing its functions of biodiversity conservation, water source recharge, and absorbing CO2.

Building on this, we will develop model cases for forest utilization and management and share them externally. This will deepen our understanding of the added value created by nature with our stakeholders and lead to the effective practice of nature-positive initiatives.

SMBC Forest Landscape Photo 2
SMBC Forest Landscape Photo 3

Our Initiatives

In May 2024, SMBC acquired approximately 220 hectares of forest in the Hinata area of Isehara City, Kanagawa Prefecture, designating it as SMBC’s forests. As part of these efforts, we have joined the Ministry of the Environment’s “30by30 Alliance for Biodiversity,” which aims to conserve 30% of land and sea by 2030. Through SMBC’s forests, we are advancing initiatives—including biodiversity conservation, environmental education, and revitalization of the forestry sector—to help realize a nature positive, decarbonized society and create social value.

  • Biodiversity Conservation

    The Hinata area is home to rare flora and fauna. To contribute to the 30by30 goal, though the SMBC’s forests, as a Nationally Certified Sustainably Managed Natural Sites, we are undertaking appropriate forest management—such as installing deer-exclusion fencing and conducting selective thinning—to conserve and restore diverse ecosystems, including habitats for rare species.
  • Generating Forest-Based J-Credits

    Appropriate forest management—thinning, planting, and other measures guided by a forest management plan—promotes tree growth and increases CO2 absorption. We plan to apply for J-Credit certification of  this incremental  absorption for use in our own carbon offsetting and related purposes.
  • Environmental Education : “Isehara nature school”

    At SMBC’s forests, we have established an environmental education site supervised by  the “Furano nature school” in Hokkaido, which the SMBC Group has supported since 2006, and we are delivering its educational programs. By helping people across generations to reconnect with the importance of the natural environment, we aim to cultivate individuals who can take the initiative in building a sustainable society.
  • Revitalizing
    the Forestry Sector

    Wood absorbs CO2 as it grows, and using domestic timber can also curb transport‑related CO2 emissions, making it an eco‑friendly building material. By making broad use of timber and thinned wood from SMBC’s forests for our building materials, in‑house fixtures, paper products, bioenergy, and more, we aim to raise the profile of domestic timber and help revitalize the forestry sector.

Milestones

April 2024
Announced the acquisition of SMBC’s forests and joined the “30by30 Alliance for Biodiversity.”
September 2024
Obtained recognition as a Nationally Certified Sustainably Managed Natural Sites.
November 2024
Signed a basic agreement with Isehara City on the use of the Hinata area following the acquisition of SMBC’s forests, and opened “Isehara nature school”.

Location / Area

SMBC’s forests is located the Hinata area in the northwestern part of Isehara City, Kanagawa Prefecture, with an area of 220.65 hectares.

Map of the Hyūga District, Isehara City, Kanagawa Prefecture

SMBC’s forests includes a wildlife protection area designated by Kanagawa Prefecture and hosts rich ecosystems with diverse species.
It is also designated as one of Kanagawa Prefecture’s water source forest, endowed with abundant water resources.
Being close to the Tokyo metropolitan area and having trails to the summit of Mt. Oyama, the area attracts hikers and birdwatchers and offers ample opportunities to enjoy nature.
Below we introduce the trees and the flora and fauna found in SMBC’s forests.

Trees Growing in the Forest

About 60% of the forested area in SMBC’s forests is plantation forest, mainly composed of Japanese cypress, cedar, and Sawara cypress. The natural forest consists primarily of broad-leaved trees such as Carpinus laxiflora and Korean hornbeam.

Trees

Flora and fauna

191 plant species, 52 bird species, and 16 mammal species have been confirmed in SMBC’s forests.(As of September 2024)
We introduce some of the animals and plants that inhabit SMBC’s forests.

Mammals

Others

Plants

The Multiple Public Functions of Forests

Forests provide a variety of public benefits that positively affect the environment and society.

Illustration of the multifaceted functions of forests

Study of Public Functions

We analyzed two key public functions of SMBC’s forests—biodiversity conservation and water recharge—by assessing both current status and multiple management scenarios. The analysis shows that, now and in the future, the forest benefits the environment and society through biodiversity conservation and water recharge. SMBC will continue to promote appropriate forest management to create even more positive impacts for the environment and local communities.

Evaluation Items

  • Evaluation Details
  • Biodiversity

    Evaluation DetailsUsing biodiversity big data, we evaluated the richness and importance of current biodiversity in SMBC’s forests and the conservation effects under different forest-management scenarios. (In collaboration with Think Nature Inc.)
  • Water Recharge Volume

    Evaluation DetailsThrough watershed water-cycle simulations, we visualized surface- and groundwater dynamics in and around SMBC’s forests, and evaluated current water recharge volumes and their changes under different management scenarios. (In collaboration with Geosphere Environmental Technology Corp.)

Assumptions for
Scenario-Based Evaluation

Category

Forest Management

Forest Management

Forest Management

Deer-exclusion fences

Scenarios Used for Analysis

Current Management

Standard rotation operations (conventional management with rotation ages of 40 years for cedar and 45 years for Japanese cypress) Maintain current management approach and continue conventional operations

Forest Zoning

Long-rotation operations (rotation ages doubled from the standard) Ultra-long rotations (rotation ages of 100 years or more) Natural forest induction (small-patch selective logging with natural regeneration to create multi-layered forests with varied ages and heights)

Maximizing Biodiversity

Manage each zone to maximize biodiversity, including species conversion where appropriate

Installing deer-exclusion fences

Install fencing over 10% of the site area

Biodiversity

Water
Recharge

Biodiversity

Findings

Both the conservation priority for biodiversity and the number of species per 1 km grid exceed the national average, showing high value as a Nationally Certified Sustainably Managed Natural Sites.
In the scenario analysis, the forest-zoning scenario resulted in 1.2 times, and the biodiversity‑maximization scenario in 1.79 times, the number of species compared with current management—indicating strong potential to improve biodiversity through appropriate forest management.

  • Current Status (Broad-Area Assessment)
  • Current Status (Detailed Assessment)
  • Scenario-Based Evaluation

In the broad‑area assessment, we overlaid the location of SMBC’s forests on Japan’s national biodiversity map (1 km resolution). Situated in a warm, high‑rainfall region along the Pacific coast, the site ranks high in both biodiversity conservation priority*1 and relative species richness*2 for vascular plants and vertebrates overall, as well as across their respective taxonomic groups (excluding freshwater fishes). This indicates the site has high value as a Nationally Certified Sustainably Managed Natural Sites.

*1: An index ranking 1 km grids nationwide by relative extinction risk.
*2: Relative index that sets the grid with the largest number of species in each taxonomic group to 100.

Biodiversity Conservation Priority in Japan
Relative Species Richness (per 1 km grid) / Average
Courtesy of Think Nature Inc

Water Recharge Volume

Findings

About 64% of rainfall in SMBC’s forests is recharged, helping to secure sustainable water supplies for downstream areas. The forest also contributes to multiple functions such as flood mitigation and water purification. Scenario analysis shows that differences in species composition, tree height, and stand density change recharge by less than 1%—indicating that even with the planned forest‑zoning management and species conversion aimed at maximizing biodiversity, the water‑recharge function remains largely unchanged at a high level.

  • Current Status
  • Scenario Analysis

The assessment indicates that SMBC’s forests recharges about 64% of rainfall (3.165 million m³ per year), equivalent to the annual water use of roughly 40,000 people.*

Water Balance Diagram for SMBC's Forests
Distribution of recharge
(In collaboration with Geosphere Environmental Technology Corp.)
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