Sustainability Promotion Framework｜Japan Pulp & Paper Company Limited

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Sustainability Promotion Framework

Approach to Promoting Sustainability

Yasushi Takei

Executive Vice President Administration,
Planning & Sustainability

In 2022, the group implemented various initiatives to strengthen its sustainable management system. As part of these efforts, we identified four themes (the environment, society, employees, and governance) for our material issues and are working to address each issue.
For the environment, we disclosed Scope 1 and Scope 2 emissions for Japan Pulp & Paper and its subsidiaries in Japan in 2022. In addition, in 2023 we calculated Scope 1 and 2 emissions at subsidiaries outside of Japan and Scope 3 emissions for Japan Pulp & Paper and disclosed the results together with an analysis of the financial impact of climate change.
For employees, in order to make effective and appropriate investments in and maximize the value of human capital, which is the largest management capital input in our value creation process, we conducted an engagement survey of Japan Pulp & Paper employees to better understand the current situation.
Drawing on the information we have gathered through the processes of assessing, collating and analyzing current conditions, we will enhance dialogue with stakeholders based on the concept of honest and fair governance. We will also further enhance sustainable management with the aim of achieving the vision we have set for each material issue.

Sustainability Promotion Framework

The Executive Sustainability Committee, chaired by the representative director, president, is in charge of formulating sustainability-related policies and strategies, resolving ESG-related issues,* and managing the achievement of the group’s goals. In addition to the Risk Management Meetings, we have established the OVOL Sustainability Promotion Meetings and the OVOL Environment & Safety Meetings, whose membership spans the entire group, as subordinate organizations under this committee. The Corporate Sustainability Division, which is responsible for implementing policies related to sustainability across the entire group, serves as a secretariat for the OVOL Sustainability Promotion Meetings and the OVOL Environment & Safety Meetings.
In fiscal 2022, we launched OVOL Sustainability NEWS, an in-house newsletter. We are also working to enhance the provision of information on global trends in sustainability and other initiatives within the group through the OVOL Sustainability Promotion Meetings. The OVOL Environment & Safety Meetings distributed information on revisions to environmental laws and regulations 12 times in fiscal 2022. In addition, the Environment & Safety Promotion Office conducted 12 on-site inspections of environmental and occupational safety compliance. These are part of efforts to raise awareness of the environment and occupational safety as well as strengthen compliance.
We will continue to implement initiatives such as education and training to promote understanding and awareness among executives and employees.

ESG-related issues refer to a wide range of environment (E), society (S), and governance (G) issues such as the following:
Environment (E): Issues related to climate change, resource depletion, waste, pollution, deforestation, etc.
Society (S): Issues related to human rights, modern slavery, child labor, working conditions, employee relations, etc.
Governance (G): Issues related to bribery and corruption, executive pay, Board diversity, political lobbying and donations, tax strategies, etc.

Sustainability Promotion Structure

Executive Sustainability Committee and Various Meetings

Organization	Chairperson	Members	Number of Meetings Held*	Objective/Role
Executive Sustainability Committee	Representative director, president	Members: Full-time directors and executive officers who are in positions controlling major areas of the business (Observer: Full-time Audit & Supervisory Board member)	15	This committee is in charge of formulating sustainability-related policies and strategies, resolving ESG-related issues, and managing the achievement of the group’s goals. It serves as the command center for group-wide sustainability initiatives.
Risk Management Meetings	General manager, Finance & Administration Division	Members: Appointed from the Internal Audit Office, Corporate Sustainability Division, Finance & Administration Division, Corporate Planning Division, and other related divisions (Observers: CFO, full-time Audit & Supervisory Board member, executive vice president in charge of Administration & Planning and Sustainability)	11	Based on the Basic Rules on Risk Management, the meetings will identify, analyze, evaluate, and prioritize risks; formulate measures to address specific risks; and work to reduce risks.
OVOL Sustainability Promotion Meetings	General manager, Corporate Sustainability Division	Members: Appointed from divisions, branch offices, and group companies in and outside of Japan (Observer: Executive vice president in charge of Administration & Planning and Sustainability)	3 (Via email)	Members work to strengthen group-wide sustainability initiatives. They also promote sustainability and compliance in their respective organizations, and serve as liaisons with divisions in the event of a disaster or other emergency.
OVOL Environment & Safety Meetings	General manager, Corporate Sustainability Division	Members: Appointed from divisions, branch offices, and group companies in and outside of Japan (Observer: Executive vice president in charge of Administration & Planning and Sustainability)	12 (Via email)	Members work to strengthen environmental and occupational safety throughout the group. They also promote environmental and occupational safety compliance and environmental measures and the reduction of greenhouse gas emissions.