SMBC Forest (Your browser does not support the video tag)
"SMBC Forest" special website
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.
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.
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.
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.
Birds
Mammals
Others
Plants
The Multiple Public Functions of Forests
Forests provide a variety of public benefits that positively affect the environment and society.
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
❶Current 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
❷Forest 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)
❸Maximizing Biodiversity
・Manage each zone to maximize biodiversity, including species conversion where appropriate
Installingdeer-exclusionfences
・ Install fencing over 10% of the site area
Biodiversity
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Water Recharge
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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.
Courtesy of Think Nature Inc
In the detailed assessment, we created 20‑meter–resolution species‑richness prediction maps for SMBC’s forests by taxonomic group. The area shows exceptionally high plant species richness, especially from valley bottoms up to mid‑slopes. Similar visualizations for other groups likewise indicate high richness along mid‑slopes near the branching sections of the river.
Courtesy of Think Nature Inc
We estimated scenario-specific changes in species richness for each taxonomic group and visualized both local biodiversity (species diversity within 20 m grid cells) and forest‑wide biodiversity (overall diversity across the entire area, spanning different habitat types).
Local biodiversity
At the local scale, we modeled three management scenarios—① Current Management, ② Forest Zoning, ③ Biodiversity Maximization—each combined with a deer‑fencing assumption. Under the scenario ③, the SMBC’s forest is projected to support 1.14 times as many species as under scenario ①.
Forest‑wide biodiversity
Forest‑wide projections for SMBC’s forests indicate that, relative to ① Current Management, the ② Forest Zoning scenario maintains 1.20 times, and the ③ Biodiversity Maximization scenario 1.79 times, the number of species—resulting in a richer forest.
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.*
(In collaboration with Geosphere Environmental Technology Corp.)
Under the forest‑zoning scenario, compartment-level recharge in varies slightly with tree height and stand density, but the aggregate change across SMBC’s forests is less than 1%, indicating that the recharge function is essentially maintained. The same result holds for the biodiversity‑maximization scenario: although compartment‑level recharge changes slightly with species distribution, tree height, and stand density, the overall change remains less than 1%, and the recharge function is maintained.
(In collaboration with Geosphere Environmental Technology Corp.)
As the eighth branch of “Furano nature school” in Hokkaido, with which SMBC has collaborated since 2006, we opened “Isehara nature school” at SMBC’s forests, and we are delivering environmental education programs.
Wood obtained through forest management in SMBC’s forests is being used for fixtures in the head‑office building and as bookshelves in the children’s space “Atelier Banrai.”