Climate Change Data

Environmental Metrics

ESG Focus Areas

• Organizational governance
• Human rights/Labor practices
• Fair operating practices
• Community involvement and development
• The environment

Environmental Achievements

• Reached the goal of removing the eco-batsu mark from all its products in 2011.
• Reduced CO2 emissions by approximately 52 tons through the use of intelligent work lighting systems.
• Achieved a 97.4% recycling rate for waste materials.

Social Achievements

• Launched the “Life Event Support Series” of products, selling over 550,000 units by January 2013.
• Implemented child-rearing benefits exceeding legal requirements.
• Introduced a re-employment system for employees who left for child-rearing or personal reasons.
• Selected for inclusion in the “100 Diversity Management Corporations” by Japan's Ministry of Economy, Trade and Industry.

Governance Achievements

• Significantly altered corporate governance in 2010 to implement CSR management.
• Established a new global KOKUYO Group Code of Conduct.
• Established a KOKUYO Group Fundamental Procurement Policy.

Climate Goals & Targets

Environmental Challenges

• Compliance violations in the past.
• Market for office furniture decreased in size since the collapse of Lehman Brothers.
• Unexpected issues during the Great East Japan Earthquake, including confusion in product distribution and production stoppages.
• High percentage of newly hired college graduates leaving employment within three years.

Mitigation Strategies

• Implemented corporate governance reforms, including having outside directors make up the majority of the board.
• Revised KOKUYO Corporate Code of Ethics to become the uniform KOKUYO Group Code of Conduct.
• Prepared KOKUYO Group Code of Conduct Handbook for seven countries and regions.
• Created a safety confirmation system for employees.
• Implemented business continuity planning (BCP) activities.
• Created the “Job Study” program to address early departure issue.

Supply Chain Management

Responsible Procurement

• KOKUYO Group Basic Procurement Policy (March 2013)

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI

Certifications: ISO 14001 (multi-site certification)

Third-party Assurance: Bureau Veritas Japan Co., Ltd.

Sustainable Products & Innovation

• Eco-products
• ReEDEN series products

Awards & Recognition

• GOLD BRANDS award (Philippines)
• ICE Awards special recognition award (India)
• Universal Design Award 2012 (Germany)
• Red Dot Design Prize: Product Design 2012 (Germany)
• Diversity Management Selection 100 (Japan)

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Cut CO2 emissions by -0.3% year-on-year. Excluding impact of production: (-3.2%) reduction in volume
• Waste materials produced by business offices: 98.0% recycling rate
• Waste materials produced at construction sites: 82.5% recycling rate

Social Achievements

• Participation rate in CSR e-learning: 77%, understanding rate: 84%
• Paid leave acquisition rate: 49.96%

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Not disclosed

Mitigation Strategies

• Not disclosed

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI

Certifications: ISO 14001

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Year-on-year reduction in unit energy consumption: ▲0.4% (compared to 2010: ▲14.0％)
• Per unit of sales: ▲3.1% (compared to 2010: ▲16.4%)
• Business offices： 96.9% recycling rate in relation to total waste volume
• Construction sites： 84.3% recycling rate in relation to total waste volume
• Completed the transition to the 2015 version of ISO14001

Social Achievements

• Number of employees taking child-care leave and nursing-care leave reported
• Paid leave acquisition rate reported
• Yearly education and training costs per employee reported

Governance Achievements

• CSR Report 2016 received the Award of Excellence at the 20th Environmental Communication Awards

Climate Goals & Targets

Environmental Challenges

• CO2 emissions increased due to higher production at plants in Malaysia and India for fiscal 2016.
• A part of the data on waste materials of KOKUYO Vietnam was omitted from the report calculations in previous years.

Mitigation Strategies

• From 2015, data from KOKUYO Vietnam is included in the report.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI, Ministry of the Environment, Environmental Report Guidelines (2012 Edition), Ministry of the Environment, Environmental Accounting Guidelines (2005 Edition)

Certifications: ISO 14001

Awards & Recognition

• Award of Excellence at the 20th Environmental Communication Awards (two consecutive years)

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Reduced CO2 emissions by -1.9% (excluding impact of production)
• Reduced unit energy consumption by -2.7% per unit of sales
• Improved recycling rate in relation to total waste volume in business offices (96.4%)

Social Achievements

• Increased paid leave acquisition rate to 61.4%
• Initiatives in health management, including regular health checkups and voluntary checkups

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Not disclosed

Mitigation Strategies

• Not disclosed

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI

Certifications: ISO 14001

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Workstyle Reform
• Diversity and Inclusion
• Employee Well-being
• Safety
• Supplier Relations
• Quality Management
• Community Engagement

Social Achievements

• Launched Play Work system promoting flexible work, reduced working hours, special leave, and new employee welfare program.
• Achieved 9,000 consecutive days without an accident at KOKUYO Logitem Okayama Distribution Center.
• Introduced CarriRo®, a delivery robot, to streamline operations.
• Implemented paperless accounting in nine group companies.
• Exceeded regulatory requirements in supporting employees with family commitments (maternity, parental, eldercare leave).
• Employs people with disabilities (2.3% of the workforce).
• Participates in the Iku-boss Corporate Alliance promoting work-life balance.
• Launched 20% Challenge, an internal moonlighting program for employee development.
• Established KOKUYO Marketing University and KOKUYO Marketing Graduate School for employee training.
• Implemented an annual employee satisfaction survey and monthly pulse surveys.
• Introduced Bonx Grip communication devices to enhance warehouse worker communication and safety.
• Implemented anti-infection measures in offices in response to the coronavirus pandemic.
• Received recognition as an employee-friendly company.
• Launched Play Work Mileage program to track and reward fitness efforts.
• Implemented an Employee Assistance Program to promote mental health.
• Livestreamed ACW awards ceremony to eight offices.
• Held online conferences with furniture production plants.
• Conducted on-site supplier audits in the stationery business.
• Launched KOKUYO Construction Subcontractors Conference.
• Revamped Customer Support Center system for real-time feedback sharing.
• Opened Kau-Box showroom and livestreamed the opening event.
• Engaged in live commerce in China.
• Donated face shields and folders to healthcare workers.
• Hosted an Olympics-themed school trip.
• Donated used computers to a disadvantaged community in China.
• Opened mini science centers at schools near KOKUYO Camlin’s plants.
• Donated food to local villagers in India.
• Released Airtrieve, Work Pod, and Solana products to address post-pandemic workplace needs.
• Published Work Transformation handbook on workplace transformation.
• Released Piiip pencil case and Mark+ marker pens.
• Released tablet and PC charging station for schools.
• Released extra-wide twin-pocket folder for elementary students.
• Launched Kaunet organizer cases for remote workers.
• Released gender-neutral resume form.
• Joined LivingAnywhere Work platform.
• Launched KOKUYO Workstyle Shop and Think of Things online shops.
• Launched “business knowhow fount” online resource for SMEs.

Governance Achievements

• All companies in the group attained ISO 9001:2015 certification.
• Implemented a new employee reward system linking pay to roles and responsibilities or skills.

Climate Goals & Targets

Environmental Challenges

• Pandemic-driven shift to remote working and its impact on employee engagement and communication.
• Maintaining workplace safety during the pandemic.
• Ensuring supplier compliance with environmental and social standards during travel restrictions.
• Addressing low rates of cancer screening among employees.
• High smoking prevalence among male employees.
• Maintaining employee mental health during challenging times.
• Supporting SMEs during economic contraction.

Mitigation Strategies

• Introduced online events (TeleCross!!!, online welcome event) to maintain employee engagement.
• Implemented anti-infection measures in offices.
• Held online conferences and audits.
• Increased subsidy for breast cancer screening.
• Launched smoking awareness campaigns.
• Implemented Employee Assistance Program and workplace improvements based on employee surveys.
• Launched “business knowhow fount” online resource for SMEs.

Supply Chain Management

Responsible Procurement

• KOKUYO Group Procurement Policy and Guidelines

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

• Airtrieve
• Work Pod
• Solana
• Piiip
• Mark+
• Tablet and PC charging station
• Extra-wide twin-pocket folder
• Kaunet organizer cases
• Notebook for Black and White Writing
• Gender-neutral resume form

Awards & Recognition

• 2020 Certified Health & Productivity Management Outstanding Organization (White 500)

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Climate Goals & Targets

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Improve Wellbeing among Employees and External Stakeholders
• Expand Business Fields through the Forest-Like Management Model
• Respond to the climate crisis
• Contribute toward a circular economy
• Contribute toward a society that coexists with nature

Environmental Achievements

• KOKUYO Mie Plant switched to net-CO2-free power.
• Reduced CO2 emissions by 21.4% from 2013 levels in domestic consolidated group companies + KOKUYO K Heart Co., Ltd., Heartland Co., Ltd.
• Offset 4,698 tons of CO2 through forest thinning program in Yui-no-Mori

Social Achievements

• Launched KOKUYO-Style Hybrid Work program.
• Introduced flextime for distribution center staff at KOKUYO Logitem Co., Ltd.
• KOKUYO and Kaunet were listed among the 500 whitelisted companies in an award program run by the Ministry of Economy, Trade and Industry and Nippon Kenko Kaigi, earning the official designation “2023 Certified Health & Productivity Management Outstanding Organization (White 500).
• Launched Hello! Family, a new brand that supports communication in modern families.

Governance Achievements

• Endorsed the Task Force on Climate-related Financial Disclosures (TCFD) recommendations.
• Established the Risk Management Division to bolster risk management across KOKUYO Group.

Climate Goals & Targets

Environmental Challenges

• Balancing the goal of cutting carbon emissions with financial goals.
• Challenges in the distribution industry due to restrictions on truckers’ overtime.
• Weak digital marketing for Kaunet's e-commerce business.
• Need to expand the business fields into new areas.

Mitigation Strategies

• Policy of buying net-CO2-free electricity from power companies.
• Workstyle reform at KOKUYO Logitem Co., Ltd. (flextime).
• Kaunet will step up efforts to address weak digital marketing with advice from outside experts.
• Allocating resources to experiments and entrepreneurial efforts aimed at contributing to society and the environment.

Supply Chain Management

Supplier Audits: 549 suppliers surveyed, 93% response rate (2022)

Responsible Procurement

• KOKUYO Group Sustainable Procurement Policy
• KOKUYO Group Procurement Guidelines
• Policy on Timber Procurement
• Circular Business Guidelines

Climate-Related Risks & Opportunities

Physical Risks

• Climate-related disaster risks (e.g., extreme weather events)
• Timber price increases due to climate impacts

Transition Risks

• Higher CO2 emission costs
• Increased capital spending needs
• Higher raw material costs
• Decline in sales revenue due to changing customer needs

Opportunities

• Development of energy-efficient products and services
• Expansion of low-emissions businesses

Reporting Standards

Frameworks Used: GRI, SASB, TCFD, UNGC, ISO 26000

Certifications: ISO 14001, ISO 9001, FSC®

Third-party Assurance: Bureau Veritas Japan

Sustainable Products & Innovation

• All-Paper series
• Neo Critz pencil case from recycled fishing nets
• Yuimori furniture from sustainably sourced timber

Awards & Recognition

• Sustainalytics ESG Risk Rating (Negligible Risk)
• MSCI Japan Empowering Women Index (WIN)
• Japan Nature Conservation Award
• Forests × Decarbonization Challenge 2022
• METI’s 2022 National Award for Greenery Factory
• 2023 Certified Health & Productivity Management Outstanding Organization (White 500)