Climate Change Data

KPP GROUP HOLDINGS CO., LTD.

Climate Impact & Sustainability Data (2021-04 to 2022-03, 2022-04 to 2023-03 (Domestic Japanese companies); 2022-01 to 2022-12 (Overseas companies), 2023-04 to 2024-03, 2024)

Reporting Period: 2021-04 to 2022-03

Environmental Metrics

Total Carbon Emissions:1797 t-CO2 (non-consolidated)
Total Energy Consumption:978 kl (crude oil equivalent, non-consolidated)
Water Consumption:8074 m3 (non-consolidated)
Waste Generated:105745 kg (non-consolidated)

ESG Focus Areas

  • Climate change
  • Biodiversity
  • Recycling
  • Marine plastic pollution
  • Diversity & Inclusion
  • Governance

Environmental Achievements

  • Developed and distributed products and materials for solving the marine plastic pollution problem
  • Developed solutions that contribute to reducing environmental impact
  • Established a recycling-oriented business model
  • Collected and recycled more than 60% of the base paper sold in Japan
  • Expanded sales of forest-certified products
  • Achieved 66.4% waste recycling rate (non-consolidated)

Social Achievements

  • Introduced a mentor system to support new employees
  • Implemented a fair evaluation system
  • Improved work-life balance initiatives
  • Increased the number of mid-career hires
  • 100% participation rate in anti-harassment training for all employees
  • Antalis donated 300,000 euros to Polish Humanitarian Action

Governance Achievements

  • Transitioned to a holding company structure
  • Established the Nomination Committee and the Compensation Committee
  • Strengthened global governance structure
  • Established global risk management and incident management structure

Climate Goals & Targets

Long-term Goals:
  • Become the world’s largest and strongest paper distributor by 2030
Medium-term Goals:
  • Achieve net zero CO2 emissions by 2050
  • Expand Green Products and Green Solutions
  • Further expand recycling-oriented business
Short-term Goals:
  • Reduce CO2 emissions (Scope 1 and 2 initially, expanding to Scope 3 and overseas locations in the future)
  • Expand sales of environment-related products
  • Achieve 70% paid leave utilization rate

Environmental Challenges

  • Shrinking domestic market due to demographic changes
  • Growth of paper-free operations
  • Geopolitical risks (Russia's invasion of Ukraine, US-China conflict)
  • Impact of foreign exchange rates
  • Supply chain disruptions
  • Impact of China's zero-COVID policy
  • Energy crisis in Europe
  • Inflation
  • Global recession
Mitigation Strategies
  • Promoting digital marketing and portfolio reform
  • Creating and expanding new businesses
  • Risk hedging measures (credit insurance)
  • Securing a wide range of procurement sources
  • Improving delivery efficiency
  • Business restructuring in China and Hong Kong
  • Margin management
  • Investment in logistics and information systems
  • Hybrid working model
  • Employee training programs

Supply Chain Management

Responsible Procurement
  • Forest certification (FSC, PEFC)
  • Green purchasing
  • Responsible wood fibre-based products sourcing policy

Climate-Related Risks & Opportunities

Physical Risks
  • Severe disasters (typhoons, torrential rains)
  • Changes in precipitation and weather patterns
  • Ecosystem changes
Transition Risks
  • Stricter greenhouse gas emissions regulations
  • Increased demand for environmentally certified products
  • Changes in market due to tighter environmental regulations and technological innovations
Opportunities
  • Increased demand for paper packaging materials
  • Expanding use of non-fossil energy
  • Formation of a recycling-oriented society

Reporting Standards

Frameworks Used: TCFD, SDGs, GRI

Certifications: ISO 14001, FSC, PEFC

UN Sustainable Development Goals

  • Goal 7 (Affordable and clean energy)
  • Goal 12 (Responsible consumption and production)
  • Goal 13 (Climate action)
  • Goal 15 (Life on land)

Initiatives related to recycling, renewable energy, climate change mitigation, and biodiversity conservation

Sustainable Products & Innovation

  • Paper face cover
  • Green Products
  • Green Solutions
  • BMecomo
  • modo-cell®
  • Paper yarn OJO +

Awards & Recognition

  • Antalis awarded a Silver medal by EcoVadis

Reporting Period: 2022-04 to 2023-03 (Domestic Japanese companies); 2022-01 to 2022-12 (Overseas companies)

Environmental Metrics

Total Carbon Emissions:1,156,165 tCO2e/year (Scope 3, FY2022)
Scope 1 Emissions:1,662 tCO2e/year (FY2022)
Scope 2 Emissions:Not disclosed
Scope 3 Emissions:1,156,165 tCO2e/year (FY2022)
Renewable Energy Share:Not disclosed
Total Energy Consumption:3,699,048 kWh/year (FY2022)
Water Consumption:9,290 m3/year (FY2022)
Waste Generated:97,724 kg/year (FY2022)
Carbon Intensity:Not disclosed

ESG Focus Areas

  • Environment
  • Social
  • Governance

Environmental Achievements

  • Reduced GHG emissions (Scope 1 & 2) by 7.7% from FY2020 levels (HD, KPP)
  • Increased recovered paper sales volume to 116,000 tons in FY2022 (KPP)
  • Achieved 87% FSC or PEFC certification for fiber-based products sold in Australia (SPI)
  • Reduced power consumption by 18% against 2020 baseline for Australian operations (SPI)
  • Offset 871.40 tons of CO2e emissions with Greenfleet in the second half of 2022 (SPI)

Social Achievements

  • Implemented career interviews for promoted employees and training by rank (HD, KPP)
  • Conducted harassment training for all employees (100% participation) (HD, KPP)
  • Implemented anger management training for managerial positions (100% participation) (HD, KPP)
  • Introduced a Parental leave System at Birth (October 2022) (HD, KPP)
  • Formulated and implemented the Plan for Promoting Women’s Career Advancement (HD, KPP)

Governance Achievements

  • Established the Sustainability Committee in April 2022 (chaired by Chairman and CEO)
  • Established the Compliance Committee, Risk Management Committee, Environmental Management Committee, Occupational Safety Committee, and Information Security Committee
  • Transitioned to a holding company structure in October 2022

Climate Goals & Targets

Long-term Goals:
  • Net zero greenhouse gas (GHG) emissions by fiscal year 2050 (HD, KPP)
Medium-term Goals:
  • Reduce GHG emissions (Scope 1 and 2) from all domestic facilities by 33% from fiscal year 2020 levels by FY2030 (HD, KPP)
  • Achieve 90% FSC and PEFC certification acquisition rate in Europe (ANT, by 2026)
  • Achieve 100% FSC and PEFC certification acquisition rate for fiber-based products (SPI, by 2030)
Short-term Goals:
  • Reduce GHG emissions from domestic business activities (Scope 1, 2) by 33% from FY2020 levels by FY2030 (HD, KPP)
  • Achieve 60% GSS sales ratio (Paper) by 2026 (ANT)
  • Achieve 40% GSS sales ratio (Visual Communication) by 2026 (ANT)

Environmental Challenges

  • Stricter GHG emission regulations (carbon pricing)
  • Increased costs due to carbon tax on operations and procurement
  • Increased transportation and storage costs due to carbon taxes
  • Increased frequency and severity of disasters (flooding, torrential rains)
  • Disruption of supply chains due to extreme weather events
Mitigation Strategies
  • Actively utilize renewable energy and strengthen energy conservation
  • Actively select products with reduced environmental impact and promote green purchasing
  • Joint delivery with other companies and improvement of delivery efficiency
  • Streamline operations at logistics centers and business sites
  • Promote disaster prevention measures at high-risk sites
  • Strengthen cooperation between sites
  • Review and strengthen BCP
  • Improve business resilience by strengthening supply chains

Supply Chain Management

Supplier Audits: 61% of strategic suppliers registered with Sedex or Ecovadis (ANT, as of June 30, 2023)

Responsible Procurement
  • Green procurement
  • Selection of products with reduced environmental impact
  • Supplier due diligence using Ecovadis and Sedex

Climate-Related Risks & Opportunities

Physical Risks
  • More frequent and severe flooding
  • Deterioration of water quality
  • Changes in ecosystems and outbreaks of pests
  • Worsening of droughts and forest fires
  • Changes in precipitation and weather patterns
  • Depletion of water resources
Transition Risks
  • Strengthening of GHG emission regulations
  • Increased demand for environmentally certified products
  • Stricter evaluation of efforts to address climate change issues
  • Competitive decline in renewable energy prices
  • Shift in demand from wood-based biomass fuels
Opportunities
  • Expansion of use of non-fossil energy
  • Expansion of e-commerce market
  • Changes in consumer preferences
  • Promotion of biomass material products

Reporting Standards

Frameworks Used: GRI Standards, TCFD

Certifications: ISO 14001, FSC, PEFC

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

  • Not disclosed

Not disclosed

Sustainable Products & Innovation

  • Green Products & Solutions (KPP)
  • Environs by Spicers (SPI)
  • Green Star System certified products (ANT)

Awards & Recognition

  • Not disclosed

Reporting Period: 2023-04 to 2024-03

Environmental Metrics

Total Carbon Emissions:20,827 tCO2e/year (Scope 1 & 2)
Scope 3 Emissions:1,059,726 tCO2e/year
Total Energy Consumption:5,018,604 MWh/year
Water Consumption:9,223 m3/year
Waste Generated:91,437 tons/year

ESG Focus Areas

  • Climate change
  • Biodiversity
  • Human capital management
  • Respect for human rights
  • Coexistence with local communities
  • Governance
  • Recycling-oriented society

Environmental Achievements

  • Reduced GHG emissions (Scope 1 and 2) by 32.4% compared to FYE March 2021 levels (target was 33%)
  • Recycled over 70% of the base paper sold
  • Green Biz Project sales reached 3.7 billion yen
  • 92% of fiber-based products in Australia are FSC and/or PEFC certified
  • 88% of Antalis' fiber-based products are FSC and/or PEFC certified

Social Achievements

  • Launched Green Biz Project Training (GBP Training) for salespeople
  • Implemented employee mentor system
  • Introduced flextime system
  • Established detailed rules for telework
  • Ratio of women in managerial positions: 13.6% for KPP Group Holdings, 2.9% for Kokusai Pulp & Paper
  • Ratio of women hired for the main career track: 30.8%
  • Hiring rate of persons with disabilities: 3.4% for KPP Group Holdings, 2.7% for Kokusai Pulp & Paper
  • Introduced paid volunteer leave program in Australia and New Zealand

Governance Achievements

  • Transitioned to a holding company structure
  • Appointed CEOs of Spicers and Antalis as directors
  • Established the ESG Committee (formerly Sustainability Committee)
  • Established an independent Risk Management Committee
  • Implemented a global IT security policy

Climate Goals & Targets

Long-term Goals:
  • Achieve net-zero greenhouse gas (GHG) emissions from own business activities by 2050
Medium-term Goals:
  • Achieve €420 million in online sales revenue by 2024 (Antalis)
  • Double revenue by 2030 (Spicers)
Short-term Goals:
  • Reduce GHG emissions (Scope 1 and 2) from all domestic facilities by 33% compared to fiscal year ending March 2021 levels by fiscal year ending March 2031.
  • Green Biz Project sales of 6 billion yen by FYE March 2025

Environmental Challenges

  • Declining demand for graphic paper due to digitalization
  • Reduced consumer spending and simplified packaging due to inflation
  • Falling product prices in Europe and the Americas
  • Weak demand for paper and paperboard in China
  • Global rise in logistics expenses and labor costs
  • Geopolitical conflicts and climate-related disasters
  • Fluctuating prices of raw materials (pulp and recovered paper)
  • High freight costs in ASEAN/South Asia
Mitigation Strategies
  • Portfolio transformation through M&A activities
  • Expansion of e-business
  • Consolidation of warehouses and offices
  • Optimization of workforce allocation
  • Cost-reduction measures
  • Reinforcement of internal systems and incident management capabilities
  • Securing new procurement sources
  • Continuous price negotiations with customers
  • Expanding sales channels and securing suppliers

Supply Chain Management

Supplier Audits: 70% of strategic suppliers registered with Sedex or Ecovadis (Antalis)

Responsible Procurement
  • Green purchasing
  • Forest-certified products
  • Sustainable packaging solutions

Climate-Related Risks & Opportunities

Physical Risks
  • Natural disasters
  • Increased frequency and severity of disasters
  • Changes in precipitation and weather patterns
  • Depletion of water resources
Transition Risks
  • Stricter GHG emissions regulations
  • Market changes in response to climate change
  • Innovations in low-carbon technology
Opportunities
  • Increased demand for environmentally certified products
  • Spread of eco-friendly packaging
  • Formation of a recycling-oriented society
  • Expanding use of non-fossil energy

Reporting Standards

Frameworks Used: GRI Standards, IIRC Framework, TCFD Framework

Certifications: ISO 14001, FSC, PEFC, ISCC PLUS

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 17 (Partnerships for the goals)

Initiatives contribute to these goals through various environmental and social programs, sustainable business practices, and community engagement.

Sustainable Products & Innovation

  • Paper-based artificial turf
  • Paper cushioning materials
  • PFAS-free oil resistant paper
  • Eco-responsible packaging solutions
  • Recycled products
  • Biomass-derived products

Awards & Recognition

  • Gold medal from EcoVadis (Antalis)

Reporting Period: 2024

Environmental Metrics

Total Energy Consumption:5,018,604 kWh (KPPP Group Holdings and domestic consolidated subsidiaries)
Water Consumption:9,223㎥ (Kokusai Pulp & Paper Tokyo Headquarters and Kansai Branch)

ESG Focus Areas

  • Climate change
  • Diversity & inclusion
  • Recycling-oriented society
  • Global governance
  • Digital transformation (DX)
  • Marine plastic pollution

Environmental Achievements

  • Recycles approximately 70% of the products it sells
  • Presides over the recovered paper wholesaler network "Risanet"
  • Deploys the “ecomo” model of recovered paper collection.
  • Developed “BMecomo”, an operation support system for biomass power plants using IoT technology
  • Antalis’ Green Star System and Coala Air Board
  • Spicers published Environs (sustainability catalog)

Social Achievements

  • Introduced e-learning to support self-development
  • Implemented career interviews for promoted employees and training by rank
  • Diverse work systems: Leave of absence and shorter working hours for childcare or nursing care/Telework
  • Promotion of women’s career advancement
  • Diversification of hiring practices
  • Support for Papermaking Class at Miyanomori Elementary School

Governance Achievements

  • Endorsed the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD) in June 2022.
  • Strengthening of global governance structure
  • Establishment of a management control system that respects the autonomy of each Group company by delegating authority and clarifying responsibilities
  • Centralized management of information and implementation of appropriate Group management
  • Global expansion of risk and incident management
  • Development of internal control and internal audit system to ensure proper business operations

Climate Goals & Targets

Long-term Goals:
  • Establish a totally recycling-oriented enterprise

Environmental Challenges

  • Climate change
  • Marine plastic pollution
  • Global expansion
  • Creation of Group synergies
  • Internal communication
  • Response to DX
  • Enhancement of governance
Mitigation Strategies
  • Implementation of green business
  • Development of solutions to prevent global warming
  • Reduction of CO₂ emissions
  • Ensuring diversity
  • Expansion of e-commerce
  • Development of new systems
  • Compliance
  • Information security
  • Risk management

Supply Chain Management

Responsible Procurement
  • Expanding the handling of forest-certified products

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: TCFD

Certifications: FSC Forest Certification (CoC Certification), PEF Forest Certification (CoC Certification)

Sustainable Products & Innovation

  • Coala Air Board
  • Paper straws
  • Reduced plastic cutlery
  • Paper-based clear folders
  • Barrier paper packaging
  • Try-on face cover for clothes shop