Sustainability Strategy

Strategy (Key Initiatives) and Indicators and Targets (KPIs)

Based on the seven identified items of materiality, we have formulated strategies (key initiatives) and indicators and targets (KPIs), and we objectively measure the status of their implementation and the results achieved. The Group Sustainability Committee reviews the status of initiatives related to each materiality and the achievement of KPIs, and the Board of Directors oversees these initiatives.

No.	Materiality (Important Issues)	Strategy = Key Initiatives	Indicators and Targets = KPIs
1	Contributing to a Decarbonized Society	Promote energy conservation and fuel switching to reduce greenhouse gas emissions Study and advance commercialization of CCS/CCUS technologies Expand use of renewable energy and introduce low-carbon technologies Enhance climate-related information disclosure (CDP responses, etc.)	Reduce CO₂ emissions in FY2030 by 43% compared with FY2005 Achieve a non-fossil energy ratio of 70% or more (zero CO₂ from non-fossil sources) Improve energy consumption intensity by 1%/year on a 5-year rolling average (standalone) Conduct feasibility studies for CCS projects
2	Promoting Reduction of Environmental Impact	Improve facilities to reduce water consumption and discharge load Ensure stable procurement of recycled paper and enhance resource circulation Reduce generation of by-products and waste from paper and pulp manufacturing, and increase recycling Expand products that address demand for plastic-free and reduced-plastic solutions Co-create and develop "functional paper for plastic-free applications" leveraging existing papermaking/coating technologies combined with nano-materials	Keep total water intake at or below 150 million m³/year 100% compliance with voluntary water quality management standards (standalone) 100% compliance with voluntary air quality management standards (standalone) Expand the scope of recycled paper utilization (standalone) Achieve a plastic waste recycling rate of 93% in FY2030 (standalone) Expand plastic-free and reduced-plastic products
3	Continued Forest Management and Protection of Biodiversity	Continue proper management of forest resources and sustainable forest management Promote surveys and conservation activities aimed at protecting biodiversity	Maintain company-owned and managed forests domestically and overseas Maintain forest certification in Japan and overseas Conduct 100% traceability surveys for non-certified timber Promote the utilization of natural capital domestically and overseas
4	Improving Workplace Safety and Health	Strengthen safety management systems and reduce occupational accident risks Prevent accidents through equipment improvements and revision of work procedures Continue safety education and training, and foster a safety culture	Establish zero serious accidents as the norm Improve the lost-time accident frequency rate Improve scores in the safety culture assessment
5	Human Capital Management	Strengthen recruitment capabilities and promote employee retention Develop human resources through education, training, and support for obtaining qualifications Create a workplace environment that enables diverse talent to thrive Promote work style reform and work-life balance Promote employee health management to maintain and improve physical and mental well-being	Improve employee engagement and productivity through "ensuring diversity," "well-being," and "fostering individual motivation to take on challenges and growth" Formulate and implement an action plan based on the Act on the Promotion of Women's Active Engagement in Professional Life (standalone) Formulate and implement an action plan based on the Act on Advancement of Measures to Support Raising Next-Generation Children (standalone)
6	Appropriate Relationships Across the Whole Value Chain	Promote responsible practices at every stage from raw material procurement to product delivery Ensure product quality and safety, and strengthen stable supply systems Continue dialogue and engagement with shareholders, investors, business partners, local communities, and other stakeholders Enhance transparency through appropriate information disclosure	Promote appropriate transactions with value chain partners (customers and suppliers) and conduct internal audits Conduct 100% traceability surveys of wood-based paper raw material (chip and pulp) suppliers Zero product liability accidents Formulate and implement a medium-to-long-term plan to improve logistics efficiency Continue engagement with institutional investors and others through IR/SR meetings, etc. Maintain and build positive relationships with local communities and indigenous communities
7	Respect for Human Rights	Continue initiatives to respect human rights based on the Human Rights Policy Implement and improve human rights due diligence in a phased manner Conduct human rights training for Group officers and employees Ensure appropriate operation of grievance and reporting mechanisms (JaCER, etc.) Ensure thorough consideration of human rights and the environment throughout the supply chain	Conduct human rights due diligence on a regular basis Conduct human rights education and training on a regular basis