December 26, 2024
Forests possess a variety of public benefits in addition to their function of producing wood resources. These benefits include the absorption and sequestration of carbon dioxide, biodiversity conservation, soil conservation, watershed protection, and providing a place for nurturing culture and tradition. The Oji Group, through its history of over 150 years and its operations rooted in forests, understands these rich functions and values of forests and has grown and managed forests working together with local communities.
Large-scale deforestation is ongoing in many parts of the world, and the world's forest area is estimated to have decreased by 178 million hectares over the 30-year period from 1990 to 2020*1. We recognize that it is our important responsibility, as a company rooted in forest-based operations, to confront this significant threat to natural ecosystems anew and contribute to the realization of a sustainable society.
The Oji Group Commits to No Deforestation and No Conversion*2.
The Oji Group has been practicing sustainable forest management and wood material procurement without deforestation and conversion through various initiatives. We will continue these efforts, further improve them, and consistently achieve no deforestation and no conversion.
The scope of our commitment includes our own forest management as well as the supply chain for the wood raw materials we procure*3. By 2025, we will further improve and implement our wood raw material procurement guidelines and establish a grievance mechanism in accordance with the United Nations Human Rights Council's "Guiding Principles on Business and Human Rights".
Respect for human rights is a core element of a responsible supply chain. The Oji Group respects the human rights defined by international norms such as the "International Bill of Human Rights" and the "ILO Declaration on Fundamental Principles and Rights at Work". Additionally, we advance activities in accordance with principles such as the UN "Guiding Principles on Business and Human Rights" and "Free, Prior and Informed Consent (FPIC)". These principles are outlined in the Oji Group Human Rights Policy, and we conduct forest management and supply chain management with consideration for international human rights, including those of Indigenous Peoples, local communities, and workers.
1) Company-wide Structure
We have established the Sustainability Committee, chaired by the Group CEO and composed of directors, to deliberate on matters related to supply chain risks and their countermeasures, with oversight and supervision by the Board of Directors. Additionally, we have set up the Corporate Sustainability Division as a cross-functional management division to drive sustainability related initiatives group wide.
2) Own Forest Management
The Oji Group owns and manages an extensive 635,000 hectares of forests worldwide. Under the Oji Group Sustainable Forest Management Policy, we practice sustainable forest management that considers the environment and local communities. We have set the target to achieve a 100% forest certification rate for our own forests by 2030 in the Environmental Action Program (2030).
3) New Business Planning
When planning new businesses, we conduct risk assessments not only from an economic perspective but also considering ESG factors. When acquiring new land for forest management, we respect human rights and FPIC, verify there are no environmental or social risks, or take necessary measures to avoid or mitigate such risks, and make it a prerequisite to obtain forest certification.
4) Supply Chain Management
The Oji Group has established the Oji Group Sustainability Action Guidelines for Supply Chains for the procurement of raw materials. These guidelines are in accordance with internationally important principles such as human rights, labor, environment, and anti-corruption as defined by the United Nations Global Compact. Since the fiscal year 2020, we have been conducting Supplier Sustainability Surveys for main suppliers, and we use the results for assessing the actual situation and risk management.
Moreover, in accordance with the Wood Raw Material Procurement Guidelines established under the above Action Guidelines, we require all suppliers of wood chips and pulp to produce sustainable wood materials. We have established a due diligence system for ongoing monitoring. We verify specified items such as the origin of raw materials and the status of forest certification through various methods, including traceability reports from suppliers, and conduct risk assessments. If a high risk is identified, we request additional documentation or conduct on site audits to monitor the situation. Additionally, we utilize forest certification systems*4 such as FSCTM and PEFC as tools to verify that there is no deforestation, land conversion, or human rights violations. If it is found that standards are not being met, we will engage in continuous dialogue and request improvements from the suppliers, and if improvements are not made, we will cease transactions with those suppliers.
5) Collaboration for Sustainability
We collaborate with stakeholders, including Indigenous Peoples, NGOs and suppliers such as smallholders, to support the implementation of sustainable forest management, protect and nurture rare flora and fauna, and conserve and restore ecosystems.
These initiatives and results are reported annually in the integrated report and on our website.
The content of this commitment and related policies will be reviewed as necessary.
Forest resources are an excellent resource that can be regenerated through sustainable forest management. Additionally, their appropriate management and utilization can maintain and restore the diverse public benefits of forests. Not only in plantation forests but also in natural forests (secondary forests), appropriate protection and utilization can promote harmony with nature and preserve the functions of forests.
The Oji Group has developed a business model that nurtures and cyclically utilizes renewable forest resources. The appropriate use of forest resources in the processes of forest management, harvesting, and planting (including natural regeneration) does not lead to deforestation*5.
The Oji Group, which owns and manages 635,000 hectares of forests worldwide, will continue to develop this business model, maintain the public benefits of forests, and expand efforts to conserve and restore natural ecosystems, thereby contributing to the achievement of a nature-positive world.