Procurement Policy for Wood Pulp

Rengo Group procures pulp sourced from wood that has been produced from sustainable forests based on the awareness that the wood in paper is a renewable natural resource, and for the sake of helping protect the global environment and global biodiversity.

Procurement Policy

1.
We will procure pulp sourced from wood that has been produced in properly managed forests that comply with local laws and regulations.
2.
We will prioritize the procurement of pulp sourced from waste timber, thinned wood, low-quality wood, and suchlike, with a view to the effective use of resources.
3.
We will not procure pulp sourced from illegal logging, wood from conservation-worthy forests, and wood obtained in circumstances that have infringed on human rights or traditional rights.
4.
We will procure from suppliers that comply with laws, regulations and social norms, which show due consideration for human rights, the environment, and society.
5.
We will prioritize procurement of pulp sourced from wood produced in properly managed forests that have received third-party forest certification. In particular, we will only procure pulp for paperboard that has received third-party forest certification.
6.
When procuring pulp that has not received third-party forest certification for other uses, in the case of suppliers in Japan, we will procure from suppliers that participate in the voluntary initiatives of the Japan Paper Association against illegal logging and have goho (legal) wood certification, or from suppliers that regularly release written pledges that they do not handle illegally felled timber, as well as traceability reports that indicate where the timber was felled, the species of tree, quantities, and so on. Similarly, in the case of overseas suppliers, we will procure from suppliers that regularly release written pledges that they do not handle illegally felled timber, as well as traceability reports that indicate where the timber was felled, the species of tree and quantities.

Initiatives Against Illegal Logging

1.
We will keep the relevant documents for a minimum of five years and make them available at the request of auditors or other such persons.
2.
We will undertake an annual audit by the Japan Paper Association's Illegal Logging Monitoring Project.
3.
We will regularly provide summaries of the above on our website and other media.

Procurement of pulp

Roughly 80% of the wood pulp Rengo uses is procured domestically, while roughly 20% is imported. In 2020, the pulp used in the manufacture of cellulose-related products at Takefu Plant received Forest Stewardship Council (FSC)® certification. With this, now all of the wood pulp we procure, including the pulp used in the manufacture of paperboard, receives forest management certification from third party certification bodies.

Procurement Policy for Wood Pulp

Illegal Logging Countermeasures

As part of our illegal logging countermeasures, in order to confirm that raw materials are procured in accordance with our procurement policy, we undertake annual audits by the Japan Paper Association’s Illegal Logging Monitoring Project. Pulp procured in FY2019 was audited by the Monitoring Project in September 2020. This audit confirmed that all of the pulp was manufactured from wood material that was obtained legally. The pulp procured in FY2020, as well, was audited by the Monitoring Project in October 2021.

Clean Wood Act Initiatives

Japan’s Act on Promotion of Use and Distribution of Legally-harvested Wood and Wood Products (the Clean Wood Act) went into force in May 2017, and the Rengo Group became a registered wood-related business operator in March 2018. To minimize the risk of purchasing wood or wood products which have been illegally harvested, we have created and use a legal certification due diligence system manual. The Rengo Group will continue to promote initiatives in accordance with the Clean Wood Act.