Sumitomo Forestry and IHI Corporation announced that they have agreed on a business alliance for a “Forest Management Consulting Business” and for “the development of a sustainable business that maximizes the value of natural capital”. Source: Timberbiz
The two companies have started a partnership aimed at realizing a consulting business for the appropriate management of tropical peatlands, and also work together to create and provide high-quality carbon credits by assigning appropriate value of natural capital, such as according to the volume of carbon stock in forests and soil.
Among Sumitomo Forestry’s core strengths are the forest management techniques it has cultivated in Japan and overseas, management techniques for degraded tropical peatlands in Indonesia, which is the only successful case in the world; and the accumulation of ground measurement data.
The IHI Group’s strengths include technologies for utilizing satellite data, which it has honed through many years in space exploration, and meteorological observation/forecasting technologies.
The two companies intend to combine their respective strengths to develop methods of tropical peatland management techniques for expanding the techniques globally and launch a consulting business in 2022.
In addition, they aim to develop methods for accurately evaluating and monitoring the amount of CO2 absorbed by vast forests.
The companies said they will seek to create “high-quality carbon credits” by adding values of forests as natural capital, this includes benefits such as preserving biodiversity and water cycles, and contributing to local communities, as well as carbon absorption in the fight against climate change.
In this way, Sumitomo Forestry and IHI will tackle the global environmental issues with the technologies of Japanese companies.
