Supplier Sustainability Surveys

Environment

Supplier Sustainability Surveys

The number of overseas suppliers has rapidly increased as we have expanded our businesses overseas. Under such circumstances, we have confirmed the status of operation of the Oji Group Partnership Procurement Policy and the Wood Raw Material Procurement Guidelines. We have also conducted sustainability surveys for main suppliers since FY2020.

Targets	Conduct sustainability surveys for main suppliers
Results	Conducted sustainability surveys of recovered paper, pulp, base paper, woodchips, chemicals and fuels (PKS, RPF and others)

Results of Supplier Sustainability Surveys (FY2020 and FY2021)

The results of surveys for 682 suppliers in Japan and overseas of recovered paper, pulp, base paper, woodchips, chemicals, PKS (palm kernel shells for use as fuel) and others in FY2020 and FY2021 are as follows. Number of suppliers that responded to the surveys: 428 (rate of response: approx. 63%).

Eight items from an ESG perspective

(1) Corporate governance related to CSR
(2) Human rights
(3) Labor
(4) Environment
(5) Quality and safety
(6) Basic stance for the supply chain
(7) Coexistence with local communities
(8) Information security/protection and fair corporate activities

The surveys were conducted for eight items listed from an ESG perspective in the form of questionnaire.
The average score of all suppliers calculated by adding the points of all eight items including corporate governance, human rights and labor was 479 (out of 800), which is about 60%. The item with a high average score was “Labor” at 67 while the one with a low average score was “Corporate governance” at 53. We also focused on human rights, which has drawn global attention as a material issue, and extracted issues.
We will provide feedback of the response results to suppliers (with radar charts) so that the suppliers can understand their strengths and weaknesses in ESG to reduce risks in the entire supply chain.
We will also continuously conduct monitoring surveys to suppliers with a score significantly lower than the average score.

Future initiatives

We will conduct surveys for the target main suppliers of fuels and subsidiary materials in FY2022 (to complete surveys of all the main suppliers). We will also conduct additional or follow-up surveys to suppliers who have not responded to the survey yet or who have a low score.

Human Rights-Related Issues

We extracted the following (1) to (3) for issues related to human rights.

(1) Lack of awareness of basic stances and principles advocated globally, Japanese and foreign human rights-related laws and regulations , social and industrial norms, etc.
(2) Lack of human rights-related policies or guidelines.
(3) Lack of human rights-related initiatives.

We will request suppliers that fall under (1) to (3) to take into active consideration (take actions for) the protection of human rights, the rights of laborers, etc. based on the Oji Group Partnership Procurement Policy through feedback of the survey results. We will also implement Human Rights Due Diligence step by step for main suppliers.