Message from the Top Management about the Environment and Society

  • Kiyoshi Otsubo: Chairman, President & CEO

    Contributing to the Development of Society’s Sustainability through Rengo as a General Packaging Industry

    Striving to be a Company That Sustainably Develops along with Society
    The implementation of the Sustainable Development Goals (SDGs) at the United Nations in September 2015 has led to increasing interest in sustainability. There is renewed recognition about the significance of the roles which companies must fulfill toward achieving these goals. Innovation by companies is the key to solving the wide range of issues faced by the global economy, environment, and society.
    “Less is more.” is the key concept for the Rengo Group’s packaging manufacturing, and is also a key concept for environmental management.

    1. “Less energy consumption”
    2. “Less carbon emissions”
    3. “High quality products with more value-added”

    This leads to the effective use of resources—our natural capital—and reduced impact on the global environment while contributing to the development of a better and sustainable society. We are fulfilling of our social responsibility as a company through the production of high-quality and high added-value packaging and this is the ideal that the Rengo Group seeks through all of our business activities. One of the backbones supporting this is our participation in the United Nations Global Compact. Rengo has been fully supporting this global initiative and respecting its spirit. We will also earnestly face the issues newly identified by the SDGs to contribute toward the development of society’s sustainability.
    The Rengo Group will be commemorating the 110th anniversary of our founding in 2019. We have formulated Vision110 so that we can continue to be a company that creates new value in packaging and takes on challenges. In it, we stated our major aspiration of taking on the challenge to become “the world’s number one General Packaging Industry,” and we hope to steadily achieve this target using the initiatives of SDGs as a core.

    Toward a Carbon-Free Society
    With the Paris Agreement entering into force in November 2016, governments and companies have been accelerating their initiatives toward realizing a carbon-free society. The SDGs have also raised climate action and clean energy as global issues. Since before, Rengo has recognized climate change as a pressing issue, and in the Rengo Group Environmental Charter— our long-term vision working toward 2050—set a target to halve our CO2 emissions by 2050 when compared to fiscal 1990 levels.
    To achieve this, our utilization of renewable energy generated by initiatives expanding the use of advanced renewable energy, has now reached 15% of overall consumption. Those initiatives include our Fukushima-Yabuki Plant which uses solar power generation for all its electrical needs during the day, and our Yashio Mill which has installed a wood chip biomass power plant to effectively utilize waste materials generated as a by-product of construction in the neighborhood. Japan has declared in the Paris Agreement to reduce CO2 emissions by 26% (compared to fiscal 2013) by fiscal 2030. Rengo takes this target as our own target and works on reducing CO2 emissions by the same amount. As part of our efforts, we plan to increase our utilization rate of renewable energy to 25% by fiscal 2030.

    Work Style Reform and Response to Falling Birthrates
    No matter how great a product is, its value cannot be put across to people without the packaging. Demands on packaging are constantly changing with the times, and there is no end to its innovation. The source of this innovation comes from each and every employee, and it is essential to create environments where diverse individuals can work with energy and maximize their unique potential.
    In 2014, Rengo embarked early on work style reform aimed at work-life balance so as to improve total factor productivity (TFP). In 2017, we announced our Work Style Reform Declaration which focuses on promoting the taking of childcare leave by male employees. To further accelerate work style reform, we formulated our Work Style Reform Action Plan in March 2018.
    Furthermore, in view of the rapidly falling birthrate and aging population, we recognize that responding to falling birthrates and nurturing the next generation are issues for companies. In 2006, we increased the congratulatory bonus given for the birth of an employee’s third or subsequent child to one million yen. Since the program was revised, 320 employees have received this bonus as of March 31, 2018.
    As more men participate in child-rearing, diverse individuals, including women, will be able to equally develop their careers, thereby increasing their motivation and leading to the company’s vitality and growth. It is important to have productivity improvement with passion, and that is the true core of TFP improvement. Rengo will continue to set examples through our actions so that we lead by example as the industry’s leading company.

    Solving Social Issues through Business Activities
    On one hand, the falling birthrate and aging population places a severe impact on the labor market. In particular, at the frontlines of transportation, including distribution and deliveries for retail stores and online commerce, how to efficiently carry out work with less people while maximizing effect is a pressing issue.
    Rengo Smart Display Packaging (RSDP)—which represents the Retail Mate series that contributes to work efficiency in distribution sites—makes opening, unpacking, and displaying easy. It addresses labor shortage in distribution sites and achieves low-cost operations. In the field of online commerce,the use of our Gemini Packaging System—which automatically assembles and packs boxes based on the product’s height— enables improved efficiency in transportation as well as automation of packaging work itself. In such ways, we do not stop at looking at packaging simply as packaging materials. It also plays a significant role in solving social issues.
    With the long working hours of truck drivers becoming a social issue, from the perspective of our customers who ship goods, we are also working on reducing the long working hours of truck drivers through improving logistics. Facing this issue together with freight operators, who cannot solve this issue on their own, we work on improving work efficiency across the entire supply chain. In November 2017, Rengo’s Kanazu Mill was recognized by the local Labour Bureau for its initiative to improve the long working hours of truck drivers.

    Leaping into the Next 100 Years as the World’s Number One General Packaging Industry Rengo
    Next year, Japan will commemorate the 110th year since corrugated packaging was first introduced in the country. During this period, society has moved from analog to digital, progressing toward a smart society through the evolution of IoT, AI, and robot technologies. The spread of e-commerce, where purchases can be made easily with a single click, also increases the importance of packaging—including corrugated packaging—as items which link computer networks to people.
    Taking on the challenge to become the world’s number one General Packaging Industry, there is no final form for this goal. I believe that our final form is none other than the creation of high added value packaging with the highest levels of passion in the world under a stance of high ethics and fairness, and an attitude of continuously taking on new challenges. As the Rengo Group moves into the next 100 years, we will continue to listen sincerely to the voices of our stakeholders. At the same time, we will address social issues in all our business activities and support logistics and lifestyles through packaging while never ceasing in our efforts toward the realization of an even better and sustainable society.

    Vision110
    Taking on the Challenge to Become the World’s No. 1 General Packaging Industry

    Establish domestic and overseas systems that can provide advanced packaging solutions and supply chains responding to all packaging needs and integrate processes from procurement of packaging material, to distribution and packing.
    Aim to excel in quality improvement and cost reduction through innovation in manufacturing technologies, and build a system where people can focus on manufacturing safely at plants with good working environments.
    Thoroughly investigate ways to utilize information communication technologies (such as IoT and M2M) to make efficient manufacturing processes, logistics, and the supply chain, and at the same time anticipate the needs of customers arising from IoT to create next- generation added value.
    Aim to be a corporation where diverse individuals could maximize their unique potential.