Sumitomo Forestry Australia
Exploring opportunities for creating sustainable value in the carbon or emerging nature market through green infrastructure projects.
Sustainable Growth: Exploring Green Infrastructure for Carbon Sequestration in Urban Landscapes
Sumitomo Forestry is a diversified global organisation with business activities ranging from forest management through to timber processing and global residential and commercial construction.
In 2022 Sumitomo Forestry announced “Mission TREEING 2030”, its long-term vision for decarbonisation by 2050 and a 2030 target date for achieving the Sustainable Development Goals (SDGs).
In pursuit of its sustainability objectives, Sumitomo Forestry Australia enlisted the expertise of Ndevr Environmental to explore opportunities for creating sustainable value in the carbon or emerging nature market through green infrastructure projects.
Existing Emission Reduction Fund (ERF) methods for generating carbon credits do not currently and readily capture sequestration benefits in the urban context. The team, therefore, undertook an evaluation to determine the feasibility of establishing a new method tailored to green infrastructure projects.
Furthermore, we were tasked with investigating alternative avenues for value creation beyond the ERF. These included exploring the international carbon market, emerging nature markets, and the recently released land-sector GHG accounting guidelines, along with the development of insetting.
Ndevr Environmental conducted a comprehensive assessment of the eligibility and feasibility of pursuing each of these identified pathways for value creation.
We approached this project with a standardised framework, enabling us to evaluate key aspects such as eligibility requirements, constraints, valuation pathways, and the commercial considerations influencing the viability of these opportunities. Real-life scenarios were examined through the use of case studies.
For instance, in the case of the carbon credits pathway, we assessed:
- the core ERF scheme and relevant method requirements that present hurdles for uptake currently and would need to be overcome for method adaptation or method development;
- the steps and process required towards creation of a Method; and
- commercial structures and project delivery considerations, such as legal right, that influence viability.
The project culminated in a set of recommendations for next steps, which were presented to the client during an in-person workshop. These recommendations will now guide the client’s future actions, enabling them to unlock sustainability value from their core business activities and work toward achieving the goals of Mission TREEING 2030.
Learn more about Sumitomo Forestry Australia’s sustainability initiatives.
“Ndevr Environmental’s technical expertise, in-depth knowledge of the ERF and support in exploring carbon and nature market opportunities were invaluable through this project. They provided robust and detailed analysis and clear, fit for purpose recommendations, that will shape our future sustainability initiatives, aligning with our commitment to driving positive impact.“ – Kevin Swanepoel, National Sustainability Manager, Sumitomo Forestry Australia