Demonstrating the Multi-Functional Role of Forests：Sustainability：The Norinchukin Bank

Initiatives to Demonstrate the Multi-Functional Role of Forests

Japan is a heavily forested country, with forests occupying approximately two-thirds of the land. Forests play multi-functional roles, but today, their carbon dioxide sequestration capacities are attracting attention as Japan and other countries grapple with climate change issues. Forests also play an important role in biodiversity conservation. On the other hand, they face a variety of challenges, including slumping prices for standing timber, increased costs for reforestation, and the inability to find workers.
The Bank, in cooperation with forest owners’ cooperatives, will help demonstrate the multi-functional role of forests by resolving upstream, midstream, and downstream issues related to forests and forestry.

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Contributing to the Realization of a Sustainable Society Through Wood Utilization

Maintaining and using forests properly as the forests enter harvest season is an urgent matter for the multifunctional role of forests. The Norinchukin Bank joins the Japan Wood Design Association to help create a sustainable society by encouraging the use of domestic timber. In June 2023, the Association signed the Agreement on the Encouragement of Wood Use in Buildings with four ministries (Ministry of Agriculture, Forestry and Fisheries, Ministry of Economy, Trade and Industry, Ministry of Land, Infrastructure, Transport and Tourism, and Ministry of the Environment) to encourage wood use further.

* Established in December 2021, the Japan Wood Design Association refers to efforts aimed at solving social issues using wood as “wood design,“ and aims to contribute broadly to society through efforts to turn the forest industry into a growth industry, revitalize local communities and realize a sustainable society including decarbonization.

Ceremony to commemorate the establishment of the JWDA

The Norinchukin Bank's Effort to Improve Forestry Labor Safety

In addition to subsidizing the purchase of safety equipment, the Norinchukin Bank offers the following initiatives to improve forestry labor safety.

Forestry Safety Education 360° VR
Introduced in fiscal 2020, the Forest Safety Education 360VR is an education tool forestry workers use to improve safety. Using VR to show dangerous situations and conditions at forestry sites helps us teach safety in a clear and easy-to-understand way, no matter where the learner is located. Forest cooperative networks, government agencies, forestry colleges, and others use our products extensively.

Images of VR

Sponsorship of the Japan Logging Championship
The Japan Logging Championship is a chainsaw competition in Japan that aims to enhance forestry techniques and safety skills, promote forestry jobs, and raise the social perception of the forestry industry. The Norinchukin Bank has been the main sponsor of this event since it started.

Creating a Platform for Managing Forest-Derived Credits from Production to Sale

At the end of March 2023, we introduced a platform in collaboration with the National Federation of Forestry Owners' Cooperative Associations. This platform supports the entire process of forest-derived credits, from production to sale, contributing to the green growth of forests, the forestry industry, and carbon-neutral societies. In March 2024, we completed the first transaction using this platform. We will continue to help forestry cooperatives across the country create forest credits and connect them with companies interested in buying these credits on the platform.

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FC BASE-C (Forest Credit Base Create)
Mechanism for the creation of forest-derived credits (Active Since March 2023)

FC BASE-M (Forest Credit Base Market)
Forest-Derived Credit Sales Support Website (Active Since March 2024)