Taking into account the characteristics of our business, which centers on paper and pulp, we have launched initiatives for sustainability due diligence to identify environmental and social issues across our entire supply chain and to manage them appropriately. Focusing on key areas such as the sustainability of forest resources, human rights and labor practices, environmental impacts, and compliance with laws and regulations, we will initially work to gain a clear understanding of our suppliers and business partners and to visualize potential risks. As a trading company specializing in paper and pulp, we aim to build a phased and effective due diligence framework by leveraging international frameworks and existing information.
We place importance on sustainability throughout our entire supply chain and promote responsible procurement that takes sustainability into consideration, with the aim of realizing a society in which we coexist and co-prosper with our stakeholders. We will work in cooperation with our business partners to implement the matters set forth in this policy.
1.Basic Concept
The Company promotes sustainability and responsible procurement practices throughout the entire supply chain, and aims to create a society that coexists and prospers with stakeholders. We will work with our business partners to ensure compliance with the matters set out in this policy. This policy applies to all KPP Group companies.
2.Compliance Standards
• Compliance with laws and regulations
We will comply with the relevant laws and international norms at each site.
• Respect for Human Rights
We will strictly prohibit child labor and forced labor, respect the right to freedom of association and collective bargaining, and prohibit all forms of discrimination and harassment.
• Consideration for the environment
We will promote the reduction of greenhouse gas emissions, the use of recycled resources, the optimization of waste and water resource management, and the conservation of biodiversity.
• Improvement of the work environment
We will pay appropriate wages and benefits, conclude appropriate labor contracts, and ensure workplace safety and health.
• Ensuring business continuity
In the event of changes in the business environment due to natural disasters or other factors, we will strive to manage risks in order to maintain product supply.
• Emphasis on fair trade
We will prevent corruption, including bribery and illegal transactions, and emphasize responsible mineral procurement and the protection of intellectual property rights.
• Ensuring product safety and quality
We will provide high-quality, safe products and services.
• Ensuring information security
We will establish appropriate systems to protect confidential information and personal information.
3. Governance and Operational Structure
The ESG Committee, led by management, promotes responsible procurement. Centering on the Procurement Department, we will build a cross-organizational structure in collaboration with the Sustainability Department and other relevant functions.
4. Disclosure and Communication
This policy will be published and shared with stakeholders on the KPP Group’s corporate website.
Established on October 22, 2025
Initiatives
As part of our concrete initiatives going forward, we will prioritize suppliers with a large procurement volume or those considered to have higher potential environmental or social risks. We will begin by conducting questionnaire-based surveys to understand the current status of each supplier’s initiatives and management systems. The progress of these initiatives and the insights gained will be shared within the ESG Committee and reported to the Board of Directors as appropriate, and the initiatives will be promoted in a phased manner under management oversight.
In the fiscal year ending March 2024, we conducted human rights due diligence and identified three key themes related to labor conditions: those at Group subsidiaries, at suppliers, and at contractors including the working environment of drivers. These themes were selected in collaboration with a third-party organization from among the issues raised during internal interviews, based on their high potential risks and significant negative impact on society. The due diligence conducted for Group companies during the same fiscal year did not reveal any major human rights issues. It was also confirmed that management is aware of the concerns that were raised. Furthermore, in 2025, we conducted due diligence covering overseas production sites of our domestic subsidiaries and confirmed that no issues were identified.
