Corporate Social Responsibility Kyoto-Style:

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Annice Burns
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Dean/Professor Graduate School of Global Environmental Studies

1 Corporate Social Responsibility Kyoto-Style: Kyoto Model Forest s Approach to Collaborative Forest Management Shibata Shingo Dean/Professor Graduate School of Global Environmental Studies Sophia University, Tokyo, Japan shibata@genv.sophia.ac.jp April 2017

2 Introduction The Kyoto Model Forest is currently the only Japanese member of the International Model Forest Network (IMFN). In 31 countries, the IMFN strives to support the sustainable management of the natural resources through a participatory, landscape-level approach that reflects environmental and socio-economic issues from the perspectives of local needs and global concerns. In 2006, the Kyoto Model Forest Association (KMFA), a public-interest, incorporated association, was formed to serve as a catalyst for sustainable forest management activities under the supervision of the Model Forest Promotion Division of Kyoto Prefecture. These activities together referred to locally as the Kyoto Model Forest movement are carried out through partnerships with a range of stakeholders working in forest management. Among those stakeholders are private companies that have become members of the KMFA and that fund forest management activities in what are known as Enterprise Forests. Enterprise Forests are privately or publicly owned forest areas that are leased at no fee to member organizations of the KMFA. The organizations use the forests to engage their employees or the public in their corporate social responsibility (CSR) activities. In the Japanese context, those forests would be called Companies Forests. However, for English readers, the term is better translated as Enterprise Forests. This article highlights the innovative approach of the KMFA in establishing partnerships by appealing to the corporate social responsibility (CSR) motivations of private companies among them, well-known global corporations such as Suntory, Coca-Cola and Kyocera. Although there are other examples of private-sector engagement in model forests across the IMFN, this one of the Kyoto Model Forest is truly unique and shows how the model forest concept can respond to local needs. 1 1 This article is based on information and data provided by the Kyoto prefectural government (with subsequent updating) and on the author s observations, personal conversations with attendees at Kyoto Model Forest meetings, and field visits to Enterprise Forest sites. 2

The International Model Forest Network (IMFN; www.imfn.net) was started by the Government of Canada in the early 1990s.

3 The International Model Forest Network (IMFN; was started by the Government of Canada in the early 1990s. Its main mission is to establish a global network that represents most of the world s major forest ecosystems and promotes participatory, landscape-level sustainable resource management. The IMFN strives to ensure that all members can contribute to and share in the benefits of the network. Today the IMFN includes more than 60 large-scale landscapes in six regional networks. These landscapes together cover 84 million hectares. The model forest approach offers an effective and flexible process that creates broad partnerships and represents the environmental, social and economic forces at play on the landscape. To contact the IMFN Secretariat: imfn@imfn.net 3

How the Kyoto Model Forest movement began What comes to mind when you think of Kyoto? Temples and shrines? Traditional cultures such as Geisha? Kaiseki cuisine? The Kyoto Protocol?

4 How the Kyoto Model Forest movement began What comes to mind when you think of Kyoto? Temples and shrines? Traditional cultures such as Geisha? Kaiseki cuisine? The Kyoto Protocol? Few people know that Kyoto, ancient capital of Japan, also has a proud history of traditional forestry. About 75% of Kyoto Prefecture is forested, 38% of that in plantations. The prefecture is also noted for its region of traditional plantation forests, Kitayama. Here, Kitayama sugi forestry is carried out: that is, the specialized production, through 30-year cutting rotations, of polished logs for Japanese traditional houses. In order to produce straight, good quality logs, branches are cut off up to great heights during tree growth. Such practices create a distinctive landscape (Photo 1). Because large areas of plantations were established in the 1960s and 1970s, intense stand-tending activities are currently required for these forests. Some stands are already harvest age. However, the forest industry in Japan has been in a slump for over a decade, and management activities have often not been conducted properly. Accordingly, in spite of government incentive programs, many neglected plantation forests remain. Some are very dense, unhealthy looking and lacking any forest floor vegetation. They are of little ecosystem or cultural service, which healthy forests are expected to provide, and this has prompted repeated calls for the forestry administration to take action. Photo 1. View of a Kitayama sugi plantation forest (Cryptomeria japonica), showing a mosaic of different-aged stands. (Courtesy of Kyoto Prefecture) 4

In recent decades, with international climate change discussions underway including the Conference of Parties in Kyoto in 1997 (resulting in the Kyoto Protocol) societal interest in forests and in

5 In recent decades, with international climate change discussions underway including the Conference of Parties in Kyoto in 1997 (resulting in the Kyoto Protocol) societal interest in forests and in environmental and conservation matters broadly has surged. Private companies, Non-Profit Organizations (NPOs) and other businesses have increasingly adopted CSR objectives as part of their business strategies. For these organizations, being involved in the Kyoto Model Forest s forest management and environmental conservation activities offers an attractive option for fulfilling CSR objectives, with facilitated stakeholder engagement and at relatively small expense. Last year, the KMFA celebrated its 10-year anniversary of establishment. Since 2006, the goal has been to bring together all stakeholders private companies, NPOs, volunteer organizations, universities, citizens, prefectural and municipal governments, and forest owners to achieve participatory, sustainable forest management. The aim is to secure multiple benefits, from watershed protection, landscape preservation and economic revival to mitigation of global warming. Establishment of the Kyoto Model Forest Association According to Dr. Ozawa Fusho, former Director- General of the Forestry Agency of Japan and a special advisor to the Kyoto Model Forest, the Kyoto Model Forest Association (KMFA) was set up four years after his meeting with the prefectural governor, Mr. Yamada Keiji, who also played a leading role in the recent establishment of Kyoto Forestry Technical School, one of only a few such schools in Japan at that time. In addition, Mr. Peter Besseau, former Executive Director of the International Model Forest Network s Secretariat based at Natural Resources Canada, visited Japan many times to assist the association s establishment. Mr. Peter Besseau (left) and Dr. Ozawa Fusho (right) were key in establishing the Kyoto Model Forest. (Courtesy of Dr. Ozawa Fusho) 5

A core activity of the KMFA is providing forest management support to private companies and other organizations that have committed to undertaking activities in Enterprise Forests.

6 A core activity of the KMFA is providing forest management support to private companies and other organizations that have committed to undertaking activities in Enterprise Forests. As of June 2016, the KMFA had 354 members, including 174 private companies and other organizations, 27 prefectural and municipal governments, and 153 individuals. 2 Participation in the KMFA, which is headed by a local business leader, gives members an avenue through which to conduct business in Kyoto, where there is a culture of distinguishing between the outside world and the inner community. This means that private companies are provided not only business opportunities in Kyoto and the ability to fulfill their CSR objectives at minimum cost, but also the chance to provide their employees with the beneficial experience of working in the Enterprise Forests. Unlike many model forests abroad, the Kyoto Model Forest is strongly government driven, because the prefecture s intention is to accelerate forest management activity within its boundaries. In summary, the Kyoto Model Forest movement grew out of a combination of factors: mounting uneasiness about unmanaged forests; strong government leadership to remedy the situation; increasing interest by private companies in pursuing CSR opportunities; growing societal awareness of conservation issues; and the unique Kyoto culture. 2 There are several ways to conduct CSR activities through forest management. As well, some companies conduct CSR activities by acquiring their own forests at other locations in the country, in addition to participating in the Kyoto Model Forest s Enterprise Forests activities. 6

7 How the arrangements in Enterprise Forests work As of June 2016, a total of 42 contracted private companies, universities and other organizations held free, multiple-year (normally five) lease contracts with the KMFA or forest owners to conduct forest management activities at 39 different locations in Kyoto Prefecture. This included 32 private companies, 1 foundation, 2 universities, 2 labour unions, and 5 NPOs or other organizations. Contracts are called Agreements on Forest Utilization and Conservation and are arranged between contracted organizations, the KMFA and Kyoto Prefecture. Companies are asked to conduct activities such as thinning, weeding, bamboo management, trail construction, and environmental education activities. Another agreement to guarantee a company s free use of the land is also exchanged between the company in question and a municipality. As noted above, contracting companies include well-known global corporations as well as small local companies. Figure 1 shows the number of contracted organizations that started activities each year, from 2007 to Twelve began in 2008, followed by others annually. All organizations have renewed their contracts except one company, which terminated its agreement as the result of a merger. Companies advertise their CSR activities in environmental reports they post on their websites. The Kyoto Prefecture also uses public campaigns to promote this work and the achievements in Enterprise Forests. FIGURE 1. Number of contracted companies starting activities in Enterprise Forests, Number of new contracted companies (Source: Kyoto Model Forest Association) 7

8 Activities undertaken in Enterprise Forests The activity sites in Enterprise Forests vary in size (Figure 2). Some large companies do establish large activity sites, but there is no clear correlation between company size and size of the activity sites. FIGURE 2. Size of activity sites in Enterprise Forests. 14 Number of contracted companies < >50 Hectares (ha) (Source: Kyoto Model Forest Association) Figure 3 shows the activities carried out by the contracted companies. The most common activity is tending of broad-leaved forests and pine forests, followed by environmental study, tending of coniferous plantations, establishment of roads, trails and animal fences, participation in local forest educational events, wood utilization campaigns, tending of bamboo and funding of forest management activities. 8

9 FIGURE 3. Forest management activities conducted at Enterprise Forests. (Note: Data are shown for 38 companies, multiple counts.) Tending of broad-leaved and other forests Environmental study Tending of coniferous plantation forests Establishment of roads, trails, animal fences Effective utilization of woods Participation in local events Tending of bamboo Provision of funds (Source: Kyoto Prefecture) Number of contracted companies Precise data about company spending on these forest management activities are not available. However, it is likely very modest, with most expenses being incurred for equipment and material costs. Carbon credits for activities in Enterprise Forests The KMFA is also a certifying body for a forest carbon offset scheme implemented under the Kyoto Prefecture Anti-Global Warming Regulation. Companies and organizations can obtain carbon credits for their forest management performance. For example, the amount of absorbed forest carbon is estimated to be equivalent to about 12 tons of CO 2 for thinning activity in a standard 30-year-old Japanese cedar (Cryptomeria japonica) plantation site. As of June 2016, a total of 67 companies and other organizations had received certification for carbon offsets through their forest management activities, the equivalent of 1,739 tons of CO 2 over 252 hectares (Figure 4). As shown in Figure 5, the annual amount of forest carbon certified has been between 50 and 100 tons of CO 2 in recent years. 9

10 FIGURE 4. Area (hectares) of Enterprise Forests that have been certified for carbon offsets, annually from 2007 to 2015 and cumulatively over that period Accumulated area of certified forest Annual area of certified forest Hectares (ha) (Source: Kyoto Prefecture) FIGURE 5. Amount of forest carbon (tons of CO 2 ) certified in Enterprise Forests, annually from 2007 to 2015 and cumulatively over that period Forest carbon (tons of CO 2 ) Accumulated amount of certified forest carbon (CO 2 ) Annual amount of certified forest carbon (CO 2 ) (Source: Kyoto Prefecture) 10

Greater public involvement in forest management activities As well, in 2013, a new scheme called Citizen Participation Model Forests was initiated by the central government (Forestry Agency).

11 Greater public involvement in forest management activities As well, in 2013, a new scheme called Citizen Participation Model Forests was initiated by the central government (Forestry Agency). Under the scheme, citizens groups or NPOs receive government subsidies to conduct forest management activities within the KMFA. As of June 2016, 80 organizations were being supported through this initiative, and more than 15,000 people had participated in forest management activities and environmental education activities. At the Model Forest Conference held in Kyoto on 3 March 2014, four company representatives made presentations about their activities in Enterprise Forests (Photo 3). Discussions focused on how the companies enjoy forest management and environmental study activities and how partnerships can be fostered through the activities. All company representatives said they appreciate the activities for enhancing employee health and well-being and for enhancing communications with local communities and within their own company. This aspect of the CSR activities seems to be a special motivator, giving the companies and their employees rare opportunities for environmental education and recreation in the outdoors. Photo 3. Company representative making a presentation at the Kyoto Model Forest Conference in March 2014 in Kyoto. (Courtesy of Kyoto Prefecture) 11

A sample of forest management activities conducted at Enterprise Forests Bamboo tending

Weeding at a planting site (Photo 5) Thinning of regenerating second-growth broad-leaved

Tending to a bamboo forest. (Courtesy of Kyoto Prefecture) Photo 5. Weeding a forest.

12 A sample of forest management activities conducted at Enterprise Forests Bamboo tending (Photo 4). The spread of bamboo in unmanaged forests is a common problem in Japan. Weeding at a planting site (Photo 5) Thinning of regenerating second-growth broad-leaved forests after they were cut and used for fuel in older days (Photo 6) Photo 4. Tending to a bamboo forest. (Courtesy of Kyoto Prefecture) Photo 5. Weeding a forest. (Courtesy of Kyoto Prefecture) Photo 6. Thinning a second-growth broad-leaved forests. (Courtesy of Kyoto Prefecture) 12

National Forests Support Most of the Enterprise Forests sites are in private forests, but two are in national forests managed by the Kyoto Osaka District Forest Office.

This approach worked well for several decades, until the system became unsustainable despite repeated streamlining efforts.

13 National Forests Support Most of the Enterprise Forests sites are in private forests, but two are in national forests managed by the Kyoto Osaka District Forest Office. In Japan, the national forest system was long managed based on timber sale revenues, even though activities also met multiple social, non-economic goals. This approach worked well for several decades, until the system became unsustainable despite repeated streamlining efforts. As a result, it was recently restructured to be managed completely within the general government budget (and not as a special government budget item). At the same time, the Forestry Agency has worked hard to change the image of national forests from that of a traditional government timber enterprise to one of forests for citizens that is, national forests managed primarily to meet social and environmental objectives. To this end, the agency has promoted a number of initiatives to enhance public participation in national forest management. Two of those initiatives are permitting the use of national forests as sites for Enterprise Forests: The Motoyama National Forest is part of the national initiative of Public Contribution Forests. It is about 15 hectares in size and composed of pines and second-growth broad-leaved trees (Photo 7). The Chotozaka National Forest is part of the national initiative of Recreational Contact Forests. Like Motoyama, Chotozaka National Forest is a secondary forest of about 15 hectares, and is composed of pines, broad-leaved trees and some plantations (Photo 8). Photo 7: Motoyama National Forest is designated as a Public Contribution Forest. (Courtesy of Kyoto Prefecture) Photo 8: Chotozaka National Forest is designated as a Recreational Contact Forest. (Courtesy of Kyoto Prefecture) 13

14 Conclusions The Kyoto Model Forest adapted the model forest concept to create a unique Kyoto-style approach to collaborative forest management. The result has been the successful linking of private and public forest owners with private companies that wish to pursue CSR opportunities and benefit from incentives such as carbon credits. The general public has also been able to participate in many events related to forestry and environmental conservation. This broad, multi-stakeholder partnership has enabled Kyoto Prefecture to tackle prevailing forestry problems (especially the need for tending forests to make them healthier) that the forestry sector alone could not do while at the same time achieving a range of social and environmental benefits. A particular strength of this Kyoto-style collaborative approach to forest management has been the implementation of policy to successfully engage private companies. Examples of policy formulated to enable collaborative landscape management at the local level also point to the potential for greater stakeholder involvement in natural resource management. Such models of collaborative policy-making, as this Kyoto Model Forest shows, have the potential to be applied in future at wider landscape levels to improve the management of Kyoto s natural resources (e.g., in developing watershed-level ecosystem service management plans) and at higher policy levels (e.g., by involving stakeholders and government ministries/agencies). The Kyoto Model Forest, with its unique approach to broad stakeholder involvement and a shared vision, has demonstrated how such initiatives can succeed. Acknowledgements The author thanks the Model Forest Promotion Division, Kyoto Prefecture, for providing data and photos on Model Forest activities. The author also thanks Dr. Ozawa Fusho for his support for this article. Lastly, the author expresses his appreciation to the Kyoto Osaka District Forest Office for supplying information on national forest activities. All views expressed in this article are those of the author and not of related institutions. Assistance in editing and layout was provided by the International Model Forest Network Secretariat, hosted by Natural Resources Canada. 14

ANNUAL REPORT TRENDS OF FORESTRY

ANNUAL REPORT TRENDS OF FORESTRY ANNUAL REPORT ON TRENDS OF FORESTRY Fiscal Year 2000 SUMMARY Provisional Translation Ministry of Agriculture, Forestry and Fisheries, Japan Table of Contents Chapter : History of previous forestry policy