Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate Change
• Forest Management
• Biodiversity
• Waste Reduction
• Water Pollution Prevention
• Air Pollution Prevention
• Occupational Safety and Health
• Human Rights
• Community Relations
• Supply Chain Sustainability

Environmental Achievements

• Reduced CO2 emissions from fossil energy by approximately 27% compared to fiscal 1990.
• Increased non-fossil energy share to 45% of total energy usage.
• Achieved a waste recycling rate of 95.6% (vs. total waste generated) and an on-site recycling rate of 32.2% for waste generated at mills.
• 100% of imported hardwood chips were PEFC- or FSC®-certified.

Social Achievements

• Launched various initiatives to promote work-life balance, including flextime.
• Implemented a trial employment system to support hiring of people with disabilities.
• Maintained an occupational accident frequency rate of 0.30 in 2013.
• Engaged in various community initiatives, including tree planting and environmental education.

Governance Achievements

• Established a Group product safety management system.
• Implemented a Group-wide environmental management system.
• Established a Group internal whistleblower system.
• Improved information disclosure practices.

Climate Goals & Targets

Environmental Challenges

• Decreased production volumes in the core paper and pulp businesses due to economic conditions and the Great East Japan Earthquake.
• Maintaining stable supply chains, especially for raw materials.
• Addressing occupational safety concerns, as evidenced by a fatal accident.

Mitigation Strategies

• Implementing energy-saving initiatives and fuel conversion to biomass.
• Strengthening supply chain management through sustainable procurement practices and supplier audits.
• Improving risk assessment procedures and safety training programs.

Supply Chain Management

Supplier Audits: Annual supplier surveys; vessel-by-vessel document verification for imported woodchips.

Responsible Procurement

• Sustainable forest resource procurement; prohibition of illegally logged lumber; use of certified materials.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Biomass power generation; development of energy-efficient products.

Reporting Standards

Frameworks Used: GRI G3.1, UN Global Compact, ISO 26000

Certifications: ISO 14001, FSC, PEFC, SGEC

UN Sustainable Development Goals

• Goal 7 (Affordable and Clean Energy)
• Goal 12 (Responsible Consumption and Production)
• Goal 13 (Climate Action)
• Goal 8 (Decent Work and Economic Growth)
• Goal 15 (Life on Land)
• Goal 11 (Sustainable Cities and Communities)

Initiatives contribute to these goals through sustainable forest management, renewable energy use, waste reduction, occupational safety, and community engagement.

Sustainable Products & Innovation

• Recycled copier paper; lightweight coated cardboard; non-aluminum paper containers; SGEC-certified MDF.

Awards & Recognition

• Cherry Tree Seedling and Planting Activity Award (Asahikawa City)

Environmental Metrics

ESG Focus Areas

• Forest Management
• Raw Material Procurement
• Environmental Responsibility
• Responsibility to Customers
• Human Rights
• Employment and Labor Responsibility
• Responsibility to Communities
• Corporate Governance

Environmental Achievements

• Reduced greenhouse gas emissions by 1.5% compared to fiscal 2013.
• Waste recycling rate reached 98.4%
• 100% of company-owned forests have forest certifications.
• All wood materials for pulp and paper are endorsed under forest certification schemes.

Social Achievements

• No serious occupational accidents.
• Frequency rate for occupational accidents requiring time off from work = 0.39
• Various workshops held for local communities in Brazil (AMCEL S.A.)
• Tree planting activities in Sugenuma Forest and Marunuma Highland.

Governance Achievements

• Established the Personnel & Remuneration Advisory Committee.
• Increased the number of independent outside directors to two.
• Began evaluating the effectiveness of the Board of Directors.

Climate Goals & Targets

Environmental Challenges

• Deterioration of artificially planted Japanese cypress and Japanese cedar forests due to low lumber prices.
• Securing sufficient amounts of wastepaper in Japan due to growing demand outside Japan.
• Uneven hiring performance for people with disabilities.
• Accidents involving employees of subcontractors and other companies performing work at Group production sites.

Mitigation Strategies

• Promoting the use of domestically produced timber and developing new applications.
• Expanding wastepaper collection and developing technology for using types of paper that have proven difficult to recycle.
• Developing and executing action plans for hiring people with disabilities at individual business sites.
• Enhancing communication and coordination with subcontractors, devoting greater attention to safety patrols and education.

Supply Chain Management

Supplier Audits: Surveys of main raw material (chips and pulp) suppliers; on-site checks of human rights conditions.

Responsible Procurement

• Philosophy and Basic Policy Concerning Raw Materials Procurement
• Action Plan for Wood-based Raw Material Procurement
• Third-party forest certification programs

Climate-Related Risks & Opportunities

Opportunities

• Development of energy-efficient products and processes; development of biomass fuels.

Reporting Standards

Frameworks Used: GRI G4, United Nations Global Compact, ISO 26000

Certifications: ISO 14001, FSC, PEFC, SGEC, Halal

UN Sustainable Development Goals

• Goal 13 (Climate Action)
• Goal 15 (Life on Land)
• Goal 6 (Clean Water and Sanitation)
• Goal 3 (Good Health and Well-being)
• Goal 7 (Affordable and Clean Energy)
• Goal 8 (Decent Work and Economic Growth)
• Goal 9 (Industry, Innovation and Infrastructure)
• Goal 12 (Responsible Consumption and Production)

The report details how the company's sustainable business model and initiatives contribute to these goals.

Sustainable Products & Innovation

• SPOPS ® replaceable paper container
• SHIELDPLUS paper-based packaging materials
• Super Jet Fiber insulation material
• MinerPa™ functional material
• CfFA® concrete admixture

Awards & Recognition

• Prize of Excellence at the Environmental Communication Awards 2016
• Excellence Award by Tokyo’s Chiyoda ward
• 2015 Biodiversity Action Award

Environmental Metrics

ESG Focus Areas

• Forest Management
• Raw Material Procurement
• Environmental Responsibility
• Customer Responsibility
• Human Rights
• Employment and Labor
• Community Responsibility

Environmental Achievements

• Reduced greenhouse gas emissions by 3.9% compared to fiscal 2013.
• Waste recycling rate reached 98.6%
• 100% of company-owned forests have received forest certifications.

Social Achievements

• No serious occupational accidents.
• Launched the Paperising Promotion Office to develop new products that solve environmental problems.
• Implemented various initiatives to promote work-life balance.

Governance Achievements

• Established the Personnel & Remuneration Advisory Committee.
• Strengthened the oversight function of its Board of Directors.
• Implemented a Group Internal Whistleblower System.

Climate Goals & Targets

Environmental Challenges

• Unexpectedly large decline in domestic demand and sharply higher fuel prices.
• Shortage of care workers in the aging society.
• Difficulty in procuring sufficient amounts of wastepaper in Japan.

Mitigation Strategies

• Reorganizing the production structure of the paper business and making maximum use of in-house facilities.
• Investing in growth areas.
• Developing new products and materials capable of contributing to a sustainable society.
• Implementing measures to reduce overall working hours.
• Working with customers to build wastepaper recycling systems.

Supply Chain Management

Supplier Audits: Conducted surveys (21 chip suppliers, 19 pulp suppliers); on-site inspections of suppliers in Vietnam and the U.S.

Responsible Procurement

• Philosophy and Basic Policy Concerning Raw Materials Procurement
• Action Plan for Wood-based Raw Material Procurement

Climate-Related Risks & Opportunities

Opportunities

• Development of energy-efficient products
• Expansion of renewable energy businesses

Reporting Standards

Frameworks Used: GRI Standards: Core option, United Nations Global Compact, ISO 26000

Certifications: ISO 14001, FSSC 22000, PEFC, FSC®

UN Sustainable Development Goals

• Goal 13 (Climate Action)
• Goal 15 (Life on Land)
• Goal 6 (Clean Water and Sanitation)
• Goal 3 (Good Health and Well-being)
• Goal 2 (Zero Hunger)

The Group's sustainable business model and initiatives contribute to these goals through sustainable forest management, reduction of environmental impacts, responsible raw material procurement, and social contribution activities.

Sustainable Products & Innovation

• CELLENPIA® cellulose nanofiber
• SHIELDPLUS® packaging material
• Minerpa® functional material
• SPOPS® replaceable paper container

Awards & Recognition

• Prize of Excellence at the Environmental Communication Awards 2016
• 2015 Biodiversity Action Award

Environmental Metrics

ESG Focus Areas

• Forest Management and Raw Material Procurement
• Climate Change
• Product Safety
• Product Value Enhancement
• Occupational Safety and Health
• Coexistence with Local Communities
• Human Rights and Labor Practices

Environmental Achievements

• Obtained forest certifications for all company-owned forests in Japan and overseas.
• Increased forest certification coverage on Paper-Pak products.
• Developed SHIELDPLUS®, an environmentally friendly paper-based packaging material.
• Developed SPOPS®, a replaceable paper container for refills.
• Achieved a high modal shift rate (87%) in transportation to rail or marine transportation.

Social Achievements

• Implemented various initiatives to improve relations with local communities.
• Developed a product safety management system.
• Obtained Halal certification for certain products.
• Conducted diversity management seminars.
• Established a help line system for reporting ethical violations.

Governance Achievements

• Established a Group Product Safety Committee.
• Implemented a compliance system with reporting channels.
• Established a New Product Development Committee to accelerate business transformation.

Climate Goals & Targets

Environmental Challenges

• Deterioration of artificially planted Japanese cedar and cypress forests due to low lumber prices.
• Need to ensure stable overseas procurement of woodchips.
• Addressing natural disaster risks.
• Meeting increasing customer demands for quality and safety in packaging materials.

Mitigation Strategies

• Promoting the use of domestically produced timber.
• Diversifying overseas woodchip import sources.
• Developing practical guidelines for addressing natural disaster risks and establishing backup facilities.
• Regularly conducting quality audits of mills and implementing quality management systems (ISO 9001, FSSC 22000).

Supply Chain Management

Responsible Procurement

• Sustainable procurement of raw materials considering environmental and social concerns.
• Use of supply chain management to practice sustainable raw material procurement.
• Promotion of dialogue with stakeholders.
• Confirmation of legality of wood raw materials through due diligence.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI, UN Global Compact

Certifications: ISO 14001, ISO 9001, FSSC 22000, PEFC, FSC®, SGEC, Halal

Sustainable Products & Innovation

• SHIELDPLUS®
• SPOPS®
• MinerPa®
• Super Jet Fiber

Environmental Metrics

ESG Focus Areas

• Climate change
• Forest management
• Recycling
• Biodiversity
• Human rights
• Occupational safety
• Community relations

Environmental Achievements

• Reduced greenhouse gas emissions by 14% compared to fiscal 2013.
• Achieved a waste recycling rate of 97.2%.
• Maintained forest certifications for 100% of company-owned forests.

Social Achievements

• Introduced four new personnel schemes to support employees with childcare and nursing care commitments.
• Implemented work-from-home measures and flextime hours.
• Exceeded the statutory employment rate for people with disabilities (2.36% vs 2.2%).

Governance Achievements

• Established a Risk Management Committee and a Compliance Office.
• Implemented compliance training for 950 employees.
• Introduced a Board Benefit Trust (BBT) as a stock compensation plan.

Climate Goals & Targets

Environmental Challenges

• Shrinking domestic demand for paper due to digitization and aging population.
• Impact of COVID-19 pandemic and natural disasters on overseas businesses.
• Severe equipment failures leading to shutdown of mills.

Mitigation Strategies

• Reorganizing the production structure of the Paper Business to improve profitability.
• Investing in growth areas such as packaging, household paper, chemicals, and energy.
• Securing around 100 billion yen in liquidity.
• Implementing various measures to achieve the Group’s target operating income of ¥50.0 billion.

Supply Chain Management

Supplier Audits: 100% of questionnaire-based surveys for auditing overseas chip and pulp suppliers; on-site checks by employees assigned to local offices; questionnaires and local interviews.

Responsible Procurement

• Sustainable procurement of raw materials; efforts to procure certified material, confirm legitimacy, pursue afforestation overseas, obtain certifications for company-owned forests, and use domestic materials.

Climate-Related Risks & Opportunities

Physical Risks

• Natural disasters (earthquakes, torrential rains)

Transition Risks

• Changes in demand for paper products due to digitization

Opportunities

• Development of energy-efficient products and biomass power generation

Reporting Standards

Frameworks Used: GRI Standards: Core option

Certifications: ISO 14001 (100% of production locations)

UN Sustainable Development Goals

• Not disclosed

The report mentions alignment with the SDGs but doesn't explicitly list the goals.

Sustainable Products & Innovation

• SHIELDPLUS®
• CELLENPIA®
• LAMINA®
• SPOPS®
• NSATOM®
• SilFeel®/NPNatural™ paper straws
• Scottie® Flowerpack toilet paper

Awards & Recognition

• Biodiversity Action Award 2015
• Development Bank of Japan's highest environmental rating
• Sumitomo Mitsui Banking Corporation's “AAA” ESG/SDGs rating

Environmental Metrics

ESG Focus Areas

• Climate change
• Resource circulation
• Forest management
• Biodiversity
• Human rights
• Occupational safety and health
• Community relations

Environmental Achievements

• Reduced greenhouse gas emissions by 14.0% compared with FY2014/3
• Waste recycling rate of 97.0%
• Maintained forest certifications for all proprietary forests, both domestically and internationally (90 thousand hectares in Japan and 83 thousand hectares overseas)
• Full-scale launch of SPOPS® replaceable containers as an alternative to plastic

Social Achievements

• Frequency rate of occupational accidents requiring time off from work: 0.79 (Nippon Paper Group, including affiliated companies)
• Rate of annual paid leave taken: 74.4% (consolidated Group companies in Japan)
• Provided PPE and wet wipes to help combat COVID-19
• Various community investment initiatives (tree planting, School of Friendship for Forests and Paper)

Governance Achievements

• Increased the number of independent outside directors to three
• Appointed one female outside director and one female outside statutory auditor
• Introduced “Board Benefit Trust” as a stock compensation system

Climate Goals & Targets

Environmental Challenges

• Declining demand for print media
• Fluctuations in raw material and fuel prices
• Impact of COVID-19 on various businesses
• Climate change risks (procurement difficulties, damage to production sites, regulatory changes)
• Shrinking domestic market for chemical products
• Intensifying competition in various markets

Mitigation Strategies

• Reorganization of production structure in the Paper Business
• Expansion of businesses in growth areas (Packaging, Household Paper and Healthcare, Chemical, Energy)
• Development of new products (paper straws, SHIELDPLUS®, Lamina®, long-length toilet paper rolls)
• Diversification of suppliers
• Establishment of a business continuity plan (BCP)
• Greater use of renewable energy
• Strengthening of research and development
• M&As and business alliances

Supply Chain Management

Supplier Audits: Surveys and interviews with suppliers of wood chips and pulp, both domestic and overseas

Responsible Procurement

• Sustainable forest management
• Traceability of wood materials
• Compliance with laws and regulations
• Respect for human rights and labor practices

Climate-Related Risks & Opportunities

Physical Risks

• Difficulty in procuring forest resources due to natural disasters
• Damage to production sites and disruption of logistics networks due to abnormal weather

Transition Risks

• New laws and regulations pertaining to greenhouse gas emissions
• Increased costs associated with conversion to non-fossil energy

Opportunities

• Growth of business based on experience and know-how in sustainable forest management
• Utilization of carbon credit
• Greater opportunities in power generation business

Reporting Standards

Frameworks Used: GRI

Certifications: ISO 14001

UN Sustainable Development Goals

• Goal 3
• Goal 6
• Goal 7
• Goal 9
• Goal 12
• Goal 13
• Goal 14
• Goal 15

The Group's mission and initiatives align with the SDGs, particularly in areas of health, water, energy, responsible consumption and production, climate action, life below water, life on land.

Sustainable Products & Innovation

• SHIELDPLUS®
• CELLENPIA®
• Lamina®
• Paper straws
• Long-length toilet paper rolls

Environmental Metrics

ESG Focus Areas

• Environment
• Society
• Governance

Environmental Achievements

• Reduced GHG emissions (Scope 1 and 2) by 30% compared with FY2013 levels.
• Reduced final disposal of industrial waste at production sites in Japan to 1.6%.
• Non-fossil energy ratio to energy used was 45%.

Social Achievements

• Launched various initiatives to support work-life balance, including childcare and nursing care leave.
• Maintained an employment rate of people with disabilities above the regulatory rate.
• Implemented harassment training for managers and supervisors.

Governance Achievements

• Established the Personnel & Remuneration Advisory Committee to enhance corporate governance.
• Implemented a system for evaluating the effectiveness of the Board of Directors.
• Reported compliance-related activities to the Board of Directors.

Climate Goals & Targets

Environmental Challenges

• Disruption of global supply chains caused by overseas situations.
• Fluctuations in product demand and market conditions.
• Risks related to climate change, including carbon pricing and emission trading.

Mitigation Strategies

• Multi-sourced purchasing, diversification of import/export destinations.
• Reorganization of production structure for graphic paper, development of new products and materials.
• Fuel conversion, energy conservation, and CO2 absorption and fixation in company-owned forests.

Supply Chain Management

Supplier Audits: All procured wood resources are audited annually by the Japan Paper Association's “Illegal Logging Monitoring Project”.

Responsible Procurement

• Principles and Basic Policies Concerning Raw Materials Procurement
• Wood Resources Procurement Guidelines

Climate-Related Risks & Opportunities

Physical Risks

• Increased frequency of severe disasters (typhoons, heavy rains)
• Deterioration of water intake quality
• Forest fires
• Deterioration in plant growth

Transition Risks

• Hikes in carbon and fuel prices
• Changes in energy composition
• Impact on raw material procurement
• Expansion of the carbon credit market

Opportunities

• Increase in demand for renewable energy
• Dissemination and expansion of next-generation vehicles
• Expansion of the carbon credit market
• Promotion of carbon recycling

Reporting Standards

Frameworks Used: GRI Standards, UN Global Compact, SASB Standards, ISO 26000

Certifications: ISO 14001, ISO 45001, FSSC 22000, ISO 9001, FSC®, PEFC, SGEC

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• CNF for various applications
• Paper-based packaging materials
• Liquid containers
• Functional corrugated cardboards
• Biocomposites

Awards & Recognition

• EcoVadis gold medal (2021, 2022)
• Various safety and environmental awards

Environmental Metrics

ESG Focus Areas

• Environment
• Society
• Governance

Environmental Achievements

• Reduced GHG emissions (Scope 1 and 2) by 37% compared with FY2013 levels (progress rate: 69%)
• Non-fossil energy ratio to energy used was 47% (progress rate: 78%)
• Final disposal of industrial waste at production sites in Japan was 1.8%
• Developed and launched the "N.Polaris43Mocha", a type of paper for the body of magazines, which reduces GHG emissions during production by approximately 20% compared to conventional products

Social Achievements

• Launched "choito®", a brand of fabric products partially made of paper yarn from used food and beverage paper containers
• Implemented vocational training for local residents in communities surrounding plantation areas in Brazil
• Expanded the content and scope of the survey for its business partners to address high-priority human rights issues

Governance Achievements

• Established the Sustainability Transformation Division to further strengthen the promotion structure for ESG issues
• Included achievement levels for ESG indicators (reduction of greenhouse gas emissions and employee engagement in the 2030VISION) in the performance evaluation criteria for internal directors from July 2024
• Established the Personnel and Remuneration Advisory Committee as an advisory body to the Board of Directors

Climate Goals & Targets

Environmental Challenges

• Decreased labor force due to an aging society with a declining birthrate
• Disruption of global supply chains caused by overseas situations
• Fluctuations in product demand and market conditions
• Risks related to climate change (including carbon pricing policies and GHG emissions)
• Risks related to delays in business structure transformation and creating new businesses

Mitigation Strategies

• Proactive recruitment and development of human resources with diverse backgrounds
• Creation of a work environment that supports flexible work styles
• Automation and labor-saving at operation sites
• Multi-sourced purchasing, diversification of import/export destinations
• Review of inventory levels
• Reduction of GHG emissions by energy savings and increasing the proportion of renewable and waste energy
• Utilization of J-Credit scheme
• Promotion of elite trees
• Implement measures to expand profitability in growth sectors
• Optimization of production structure at Opal

Supply Chain Management

Supplier Audits: Annual audits by the Japan Paper Association's "Illegal Logging Monitoring Project"

Responsible Procurement

• Principles and Basic Policies Concerning Raw Materials Procurement
• Wood Resources Procurement Guidelines
• Legality Certification Due Diligence System

Climate-Related Risks & Opportunities

Physical Risks

• Damage to production sites and distribution networks from severe disasters
• Deterioration of water intake quality
• Forest fires
• Deterioration in plant growth

Transition Risks

• Hikes in carbon and fuel prices
• Changes in energy composition
• Impact on raw material procurement
• Expansion of the carbon credit market

Opportunities

• Increase in demand for renewable energy
• Dissemination and expansion of next-generation vehicles
• Expansion of the carbon credit market
• Strengthen the policies of resource-providing countries
• Increase in products that reduce greenhouse gas emissions
• Increase in demand for biomass materials
• Increased demand for products derived from sustainable forests
• Increase in demand for sustainable aviation fuel (SAF)

Reporting Standards

Frameworks Used: GRI Standards, UN Global Compact, SASB Standards, ISO 26000

Certifications: ISO 14001, ISO 45001, FSSC 22000, Halal Certification, ISO 22000, HACCP

Sustainable Products & Innovation

• N.Polaris43Mocha paper
• Cellenpia® CNF
• Genki MoriMori™ cattle feed
• SHIELDPLUS® paper packaging
• Waterproof Liner containerboard
• SPOPS® replaceable paper container
• School POP® strawless drinking carton
• Biomass composites using KC FLOCK®

Awards & Recognition

• Environment Minister's Award
• The Forestry Agency Director's Award
• 63rd National Conference of the Pulp and Paper Industry on Safety and Health (Safety Excellence Award)
• Hokkaido Biodiversity Conservation Awards
• EcoVadis gold medal (three consecutive years)