Compliance with laws and regulations as well as the fulfillment of its social responsibility are essential not only for the company itself but also for the entire supply chain in order to enhance corporate value. Along with the rapid progress of globalization, attention is being paid to addressing social issues, and in particular, calls for taking into consideration sustainability in the procurement of raw materials are strongly required.
The Oji Group promotes responsible raw material procurement through ongoing dialogue with its suppliers, with the aim ofcontributing to a sustainable society.

Supply chain risks (environmental risks, human rights risks, etc.) and matters related to countermeasures are discussed by the Sustainability Promotion Committee and monitored and supervised by the Board of Directors.

Since fiscal 2020, the Oji Group has been conducting a sustainability survey of major suppliers selected on the basis of transaction value and product categories, with the aim of gaining a better understanding of the actual situation in the supply chain and strengthening risk management.
This survey complies with the guidelines of the United Nations Global Compact (UNGC), and is an important initiative for both the Oji Group and its suppliers to contribute to a sustainable society and fulfill their social responsibilities. The results of this survey will be used as a basis for making decisions when conducting supplier screening in the future.

The sustainability survey conducted by the Oji Group in FY2023 targeted 203 companies and received responses from 150. 955 companies in total from FY2020 to FY2023, with 702 suppliers responding, for a response rate of approximately 74%. 8 items from an ESG perspective were combined for an The overall average score was 475 (full score 800), for a score ratio of approximately 59%. The item with the highest average score was "Labor" with 67 points, and the item with the lowest average score was "Corporate Governance" with 53 points.
In the FY2023 survey, 19 companies were ranked D and 16 were ranked E.

Based on the response results of the Supplier Sustainability Survey, the Oji Group provides guidance (follow-up) to encourage compliance and implementation of the items listed in the Oji Group Supply Chain Sustainability Action Guidelines, and strives for continuous improvement.
Moving forward, we will continue to evaluate suppliers who significantly fall below the average score while aiming to improve the response rate. Additionally, for preferred and key suppliers, we plan to gradually implement human rights due diligence/environmental due diligence as part of our assessment process."

The Oji Group requires its suppliers to respect human rights in the responsible supply chain, etc.
The risk assessment was conducted in accordance with the "Practical Reference Materials for Human rights risks were identified by
The evaluation was conducted from four perspectives.

• Sector and business area risks
• Risks associated with products and services
• Regional Risks
• Company-specific risks

This assessment identified 62 suppliers identified as high risk, and we prioritized these companies for human rights due diligence.
For details of the implementation, please visit the following public information website of Oji Holdings.

In FY2022, wood pulp contained in purchased base paper (base paper manufacturers), which had not been included in the survey so far
The survey was conducted on the legality of paper (including wood-based paper) procured by the Japan Forestry Agency (JFW). Of the 531 brands excluding customer-designated base paper, 5 brands of wood
Although the origin of the material was unknown, we will promote a switch starting in FY2023, and by May 2024, all purchased base paper will be switched to the new material.
Switched to a base paper with 100% of the wood used verified as legal.