Raw Material Procurement

Hokuetsu Group Fundamental Policy for Raw Materials Procurement

We shall promote CSR( Corporate Social Responsibility ) procurement that gives due regard to the environment and society under the following policy in procuring raw materials based on the Group Philosophy and the Group Code of Conduct in order to fulfill our social responsibility.

1. We shall comply with the applicable laws, regulations and international norms.
2. We shall procure raw materials giving due regard to environment, society, and human rights.
3. We shall procure wood giving due regard to sustainability of forests and biodiversity.
4. We shall open our doors to all suppliers and engage in fair trade.
5. We shall develop a mutual trust relationship and a mutual development with business suppliers.
6. We shall control the information that we get through our transactions appropriately.

Request to Business Partners

Our Group values our entire supply chain to pursue "innovative manufacturing" in order to fulfill our corporate responsibility. As such we ask our business partners to pay careful attention to the following issues.

1. Compliance with the applicable laws, regulations and international norms
2. Reduction of the burden on the environment
3. Timber product procurement giving due regard to the sustainability of forests and biodiversity
4. Respect for human rights (ban on unreasonable discrimination, forced labor, and child labor as well as any harassment)
5. Respect for labor rights and securing workplace safety and hygiene
6. Fair competition (ban on acts that restrict competition)
7. Appropriate management of confidential information and personal information acquired through transactions and respect for the intellectual property of others
8. Appropriate quality control, competitive pricing and stable supply

Policy on Procurement of Wood Material

Basic stance

Hokuetsu Corporation promotes the procurement of wood material produced in forests that are sustainably managed to provide products that customers can use with confidence. Based on our Group Fundamental Policy for Raw Materials Procurement, we also only procure wood that has been legally produced in protected, nurtured, and managed forests.

Secure supply chains that have been established legally and sustainability

We comply with the laws and social norms of the areas where wood materials are produced, and procure wood materials produced in forests proven to be its legal and sustainable. We work with suppliers to confirm that procurement of wood chips and wood pulp products is done fairly throughout the entire supply chain.

Secure the traceability of wood materials

To prove the traceability of wood materials, we confirm the following facts:
Forest certification, Production area, Composition of the wood by Forest classification and by Wood Species, Quantity

Proof of legality and sustainability

We promote the procurement of certified materials in order to ensure that procured wood material is produced in forests that establish sustainable forest resources and legally-produced wood material, and confirm that the following wood is not included:
■Illegally harvested wood
■Wood harvested in violation of traditional and human rights
■Wood from forests in which high conservation values are threatened by management activities
■Wood from forests being converted to plantations and non-forest use
■Wood from forests in which genetically modified trees are planted

Transparency

We disclose information on wood materials that we procure on our website and in corporate reports.

Biodiversity Conservation

We procure wood materials produced in forests that take into account biodiversity conservation. In the forests that we own and manage in Japan and abroad, we run several forest operations taking into consideration　of biodiversity, such as securing conservation forest around water streams, securing protection areas, preserving high conservation value forest, and selecting appropriate planting species according to location.