Rengo Group's materiality (key issues)

Rengo identified materiality (key issues to be addressed) and disclosed the details in June 2023 to clearly communicate the Group's strategy and its significance to stakeholders.

Materiality Identification Process

Rengo identified materiality by considering both the financial impacts on the Rengo Group and the impacts of its business activities on the environment and society.

1Extract issues

We identified potential materiality by referring to the following information and considering opinions from external experts as well.

  • Information specific to the Rengo Group and trends in related industries
  • Opinions from stakeholders
  • International disclosure standards
    (such as the GRI and SASB)

2Prioritize issues

We conducted workshops throughout the company to assess the financial impacts on us and the impacts on the environment and society in relation to the issues. Based on these results, we determined the priority of the issues.

3Identify materiality

In light of our management policy and management environment, we organized 14 particularly high-priority issues into four key areas. These issues were identified as materiality following discussions and validation by the Senior Executives Meeting and Board of Directors Meeting.

Materiality and initiative themes

The Rengo Group's four materiality areas and 14 initiative themes toward addressing these areas are shown below.

Rengo Group’s MaterialityRengo Group’s Materiality Creating New Value as a Packaging Provider Coexistence with the Global Environment People-Centric Management Strengthening the Management Base for Sustainable Growth Creating New Value as a Packaging Provider Coexistence with the Global Environment People-Centric Management Strengthening the Management Base for Sustainable Growth

Creating New Value as a "Packaging Provider"

Providing sustainable packaging

We contribute to the creation of a sustainable society through the development and dissemination of packaging products that help resolve socially relevant issues.

Financial impact on the Rengo Group Impact on the environment and society
  • (+) Increase in net sales through response to market needs
  • (-) Increase in capital expenditures for product development
  • (+) Conservation of resources such as forest resources and fossil fuels
Main measures
  1. Development and dissemination of environmentally friendly paper products
  2. Dissemination and promotion of environmentally friendly plastic products
  3. Promotion of low-carbon packaging
Creating new businesses and products that resolve socially relevant issues

We create new value beyond traditional frameworks by accelerating the application of technologies cultivated over many years and strengthening collaboration across Group companies and businesses.

Financial impact on the Rengo Group Impact on the environment and society
  • (+) Increase in net sales through response to market needs
  • (-) Increase in capital expenditures for product development and production expansion
  • (+) Conservation of resources such as forest resources and fossil fuels
  • (+) Reduction of plastic waste through the development of cellulose products
Main measures
  1. Expansion of production for cellulose products
  2. Development and dissemination of new cellulose products
  3. Development and dissemination of bioethanol
  4. Response to diversifying social needs
Building a sustainable logistics system

As a company responsible for creating packaging essential to logistics, we work to resolve issues across the entire value chain from procurement to shipping, use, and collection.

Financial impact on the Rengo Group Impact on the environment and society
  • (+) Prevention of opportunity loss through stable product supply
  • (-) Increase in capital expenditures for logistics improvement
  • Maintenance of smooth economic activity for customers and consumers through stable supply of products
Main measures

Ensuring of safety and reducing burden for logistics workers

Coexisting with the Global Environment

Addressing climate change

We are committed to "climate change mitigation," which involves reducing greenhouse gas emissions and minimizing the impact of our business activities on climate change, as well as "climate change adaptation," which involves preparing for the risk of supply chain disruptions caused by natural disasters.

Financial impact on the Rengo Group Impact on the environment and society
  • (+) Creation of revenue opportunities through response to requests from business partners and customers
  • (+) Avoidance of operational shutdowns and net sales declines due to disasters
  • (+) Avoidance of increased expenses from new laws/regulations and a carbon tax
  • (-) Increase in capital expenditures for mitigation of and adaptation to climate change
  • (+) Reduction of greenhouse gas emissions
  • (+) Mitigation of impact caused by the increasing frequency and severity of weather-related disasters
  • (-) Enhancement of social and economic infrastructure resilience through stable product supply
Main measures
  1. Reduction of greenhouse gas emissions
  2. Adaptation to risks
Expanding the circular economy

We make the already established corrugated packaging recycling system more solid and work toward the realization of new systems for plastic resource recycling.

Financial impact on the Rengo Group Impact on the environment and society
  • (+) Prevention of opportunity loss through stable procurement of raw materials
  • (+) Reduction of water costs
  • Increase in capital expenditures for research and development
  • (+) Conservation of resources such as forest and fossil resources
Main measures
  1. Strengthening of the corrugated board resource recycling system
  2. Establishment of the plastic resource recycling system
  3. Efficient use of water resources
Conserving natural capital

To ensure the sustainability of the natural capital essential for our production activities, we are committed to reducing the environmental impact of our manufacturing processes and conserving natural environments such as biotopes.

Financial impact on the Rengo Group Impact on the environment and society
  • (+) Cost reduction through suppression of emissions of substances harmful to the environment
  • (+) Conservation of environments such as forests and water
  • (+) Suppression of emissions of substances harmful to the environment
Main measures
  1. Management and utilization of Nationally Certified Sustainably Managed Natural Sites
  2. Prevention of environmental accidents and pollution

People-Centric Management

Respecting human rights

With respect for the human rights of all stakeholders involved in our business activities, including employees, business partners, and customers, we fulfill our corporate social responsibility through our business activities.

Financial impact on the Rengo Group Impact on the environment and society
  • (+) Avoidance of losses due to human rights risks
  • (-) Increase in expenses for environmental and other improvements
  • Prevention of human rights violations
Main measures

Implementation of human rights due diligence

Establishing a safe and healthy working environment

We ensure the safety and health of everyone involved in our operations and work for eliminating industrial accidents.

Financial impact on the Rengo Group Impact on the environment and society
  • (+) Avoidance of losses due to industrial accidents
  • (-) Increase in capital expenditures for occupational health and safety measures
  • (+) Ensuring workplace safety and improvement working environments
Main measures

Ensuring occupational health and safety

Fostering well-being and fulfillment

We establish flexible systems and environments that enable employees to pursue career development tailored to their individual circumstances, reating a corporate culture where they can work with a sense of well-being and fulfillment. This approach aims to foster engagement and improve total factor productivity (TFP).

Financial impact on the Rengo Group Impact on the environment and society
  • (+) Realization of stable acquisition of human resources
  • (+) Improvement of market competitiveness through strengthening of human resources
  • (-) Increase in expenses due to improvements for systems and working environments
  • (+) Enhancement of well-being
Main measures
  1. Improvement of employee engagement
  2. Support for career development
Promoting DEI

We aim to foster a corporation where diverse human resources, regardless of gender, age, and other factors, respect and accept each other, enabling unique qualities and strengths to be harnessed, which in turn generates synergies.

Financial impact on the Rengo Group Impact on the environment and society
  • (+) Realization of stable acquisition of human resources
  • (+) Improvement of market competitiveness through active participation of diverse human resources
  • (-) Increase in expenses due to improvements for systems and working environments
  • (+) Creation of employment opportunities for diverse human resources
  • (+) Improvement of working environments
Main measures
  1. Promotion of active participation by diverse human resources
  2. System design for lifelong active employment

Strengthening the Management Base for Sustainable Growth

Strengthening Group governance

We are committed to enhancing the governance of the Rengo Group, aiming to maintain and improve compliance and management standards.

Financial impact on the Rengo Group Impact on the environment and society
  • (+) Avoidance of losses due to governance failures
  • (+) Development of a fair economic society
Main measures
  1. Development of a sense of integration within the Rengo Group
  2. Enhancement of employee understanding regarding compliance
  3. Prevention of incidents involving corruption
Establishing a foundation for DX

We aim to achieve harmony between digital technology and the people who use it, and to address various business challenges and contribute to society through the collection and utilization of data.

Financial impact on the Rengo Group Impact on the environment and society
  • (+) Improvement of labor productivity
  • (+) Reduction of information security risk
  • (-) Increase in capital expenditures for promoting DX and strengthening information security
  • (+) Improvement of working environments
  • (+) Improvement of sustainability in the logistics industry through DX utilization
Main measures
  1. Promotion of DX
  2. Strengthening information security
Strengthening business partnerships

We aim to achieve mutual growth between the Rengo Group and our business partners by ensuring sound procurement of raw materials with consideration for the environment and society, adhering to fair transactions based on our Declaration of Partnership Building, and establishing robust partnerships.

Financial impact on the Rengo Group Impact on the environment and society
  • (+) Stabilization of business activities through strengthened relationships with business partners and customers
  • (-) Increase in expenses associated with obtaining various certifications
  • (+) Sound development of the economy and society
  • (+) Reduction of environmental impact through sustainable procurement
Main measures

Promotion of sustainable procurement

Assurance of product quality and safety

We aim to consistently supply products that meet customer needs and enhance customer satisfaction by ensuring thorough quality and safety.

Financial impact on the Rengo Group Impact on the environment and society
  • (+) Stabilization of business relationships by supplying high quality and safe products
  • (-) Increase in expenses required for advanced quality control
  • (+) Maintenance of smooth economic activity for customers and consumers through supply of high quality and safe products
Main measures

Achievement of zero defects (ZD)

Medium-term goals

The Rengo Group has established medium-term goals to be achieved by FY3/2031 according to its materiality and initiative themes. The Group will unite to promote measures for achieving these goals.

Creating New Value as a "Packaging Provider"

Initiative theme Main measures Medium-term goals Scope
Non-consolidated Consolidated subsidiaries
Japan Overseas
Providing sustainable
packaging

1.Development and dissemination of environmentally friendly paper products

(1) Average grammage of corrugated board (basis weight per square meter)

 0.5% reduction compared to the previous fiscal year ✓ ✓

(2) Reduction of CFP for containerboard *1

 － ✓ ✓

2.Dissemination and promotion of environmentally friendly plastic products

 Net sales ratio of environmentally friendly plastic products 20% ✓ ✓ ✓

3.Promotion of low-carbon packaging

 Expansion of products subject to CFP calculation － ✓ ✓
Creating new businesses and
products that resolve socially
relevant issues

1.Expansion of production for cellulose products

(1) Production volume of cellophane

 160% compared to FY3/2024 ✓

(2) Production volume of cellulose beads

 300% compared to FY3/2024 ✓

2.Development and dissemination of new cellulose products

 Promotion of CNF commercialization － ✓

3.Development and dissemination of bioethanol

 Establishment of a production structure for bioethanol for SAF*2 － ✓ ✓

4.Response to diversifying social needs

 Promotion of sales of DEGI-PAKE*1 － ✓ ✓
Building a sustainable logistics system Ensuring of safety and reducing burden for logistics workers

(1) Improvement rate of product delivery lead time

 10% compared to FY3/2024 ✓ *3 ✓ *3

(2) Establishment of a containerboard receiving structure using RFID

 － ✓ ✓

(3) Resolution of social logistics issues through packaging

 － ✓ ✓

Coexisting with the Global Environment

Initiative theme Main measures Medium-term goals Scope
Non-consolidated Consolidated subsidiaries
Japan Overseas
Addressing climate change

1.Reduction of greenhouse gas emissions

 GHG emissions (Scope 1+2) 46% reduction compared to FY3/2014 ✓ ✓

2.Adaptation to risks

 Continued monitoring in preparation for flood risks － ✓ ✓ ✓
Expanding the circular economy

1.Strengthening of the corrugated board resource recycling system

(1) Recovered paper utilization rate for paperboard

 99% or more *2 ✓ ✓ ✓

(2)Promotion of using pulp for paperboard made from unused wood resources

 － ✓ ✓ ✓

2.Establishment of the plastic resource recycling system

 Promotion of initiatives for plastic recycling － ✓ ✓ ✓

3.Efficient use of water resources

 Water usage per unit of net sales 22% reduction compared to FY3/2024 ✓ ✓ ✓
Conserving natural capital

1.Management and utilization of Nationally Certified Sustainably Managed Natural Sites

 Continuation of biological monitoring surveys － ✓ ✓

2.Prevention of environmental accidents and pollution

(1) Number of administrative guidance cases due to environmental accidents

 Zero cases annually ✓ ✓

(2) Effective utilization rate of waste

 99% or more ✓ ✓

(3) Proper management and suppression of emissions of substances harmful to the environment

 － ✓ ✓

People-Centric Management

Initiative theme Main measures Medium-term goals Scope
Non-consolidated Consolidated subsidiaries
Japan Overseas
Respecting human rights Implementation of human rights due diligence Implementation rate 100% ✓ ✓
Establishing a safe and healthy working environment Ensuring occupational health and safety Number of fatal/serious accidents Zero cases annually ✓ ✓
Fostering well-being and fulfillment

1.Improvement of employee engagement

 Implementation rate of employee engagement survey 100% ✓ ✓

2.Support for career development

(1)Provision of opportunities for learning and acquiring certifications (holding of public courses, dispatch to external seminars, support for study abroad at universities, encouragement and support for obtaining certifications, etc.)

 － ✓ ✓

(2)Global human resource development

 － ✓ ✓
Promoting DEI

1.Promotion of active participation by diverse human resources

(1)Female recruitment ratio (Group average)

 30% or more ✓ ✓

(2)Female managerial ratio (Group average)

 8% or more ✓ ✓

(3)Employment rate of persons with disabilities (by company)

 Employment rate exceeding the statutory requirement ✓ ✓

2.System design for lifelong active employment

(1)Introduction of a mandatory retirement age system at 65

 100% ✓ ✓

(2) Introduction of a reemployment system up to age 70

 100% ✓ ✓

Strengthening the Management Base for Sustainable Growth

Initiative theme Main measures Medium-term goals Scope
Non-consolidated Consolidated subsidiaries
Japan Overseas
Strengthening Group governance

1.Development of a sense of integration within the Rengo Group

 Instilling of Corporate Philosophy and management philosophy － ✓ ✓ ✓

2.Enhancement of employee understanding regarding compliance

 Continuous implementation of training on corporate ethics and legal compliance 4 times per year ✓ ✓

3.Prevention of incidents involving corruption

 Number of serious corruption cases 0 ✓ ✓ ✓
Establishing a foundation for DX

1.Promotion of DX

 Cultivation of DX human resources and establishment of a promotion framework － ✓ ✓ ✓

2.Strengthening information security

 Number of serious information security incidents 0 ✓ ✓ ✓
Strengthening business partnerships Promotion of sustainable procurement Implementation of CSR procurement assessments for major raw materia suppliers － ✓ ✓
Assurance of product quality and safety Achievement of zero defects (ZD) Number of occurrences of serious product defects (loss of 1 million yen or more) 0 ✓ ✓
  • *1With the achievement deadline being FY3/2026
  • *2With the achievement deadline being FY3/2028
  • *3Paperboard mills and corrugated packaging plants

The list of materiality and medium-term goals is available as a PDF file.

List of materiality and medium-term goals

Of the medium-term goals, the Rengo Group's environmental goals for FY3/2031 have been grouped as Eco Challenge 2030.
Please see the following link for details.

Eco Challenge 2030