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

To harness the multiple functions of forests, the proper management and effective utilization of forests that are ready for full-scale harvesting is an urgent challenge. The Bank is a member of the Japan Wood Design Association (JWDA)*, an organization that aims to utilize forest materials to help shape a more sustainable society. The JWDA organizes the annual Japan Wood Design Award, exhibitions, and seminars, and other events to show the new ways of living and society where wood is creatively used—what “wood design” aims for.

* 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.

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.

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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

In collaboration with the JForest Group, the Bank is launching a platform for forest-derived carbon credits with the aim of promoting the green growth of the forestry industry and contributing to a carbon neutral society. A number of credit transactions have been completed on the platform since it was launched in March 2024. We will continue to provide comprehensive support to facilitate the smooth creation of forest credits by forestry cooperatives all over Japan, as well as the matching of forestry cooperatives with companies wishing to purchase carbon credits on our 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)