https://www.thepack.co.jp/en/

Headquarters

9-3, 2-chome, Higashiobase, Higashinari-ku, Osaka-shi,
Osaka 537-8911, Japan
Tel.: +81-6-4967-1221

Tokyo Head Office

2-8-4 Tomigaya, Shibuya-ku, Tokyo 151-0063, Japan
Tel.: +81-3-3469-1221

Founded1878

Incorporated

May 10, 1952

Capital2,553,505,600 yen

Representative

Hideaki Yamashita, President and CEO

CSR Report 2023

Number of employees 1183 (consolidated, as of December 2022);835 (nonconsolidated, as of December 2022)
Annual sales

89 billion yen (consolidated, as of December 2022)

Shares traded on

Prime Market, the Tokyo Stock Exchange(securities code: 3950)

Lines of business

Planning, manufacturing, and sale of paper bags,
folding paper cartons, corrugated boxes,
film packaging, etc.

Offices and Plants

Headquarters: Osaka
Tokyo Head Office: Tokyo
Branches: Hokkaido, Tohoku, Kanto, Yokohama, Nagoya,
Kyoto, Kobe, Okayama, Hiroshima, Shikoku, Fukuoka
Sales offices: Aomori, Niigata, Shizuoka, Kanazawa,
Matsumoto, Yonago, Takamatsu, Oita, Kumamoto,Kagoshima, Nagasaki, Okinawa
Plants: Osaka, Nara, Tokyo, Ibaraki

Domestic subsidiaries:

Keihin Tokushu Printing Corporation
Nikko Print Corporation
Pack Takeyama Co., Ltd.
Nishinihon Printing Co., Ltd.
Kannaru Printing Co., Ltd.

Overseas subsidiaries:

The Pack America Corporation
The Pack (Shanghai) Corp.
The Pack (Changshu) Co., Ltd.

URL

https://www.thepack.co.jp/en/

Environment,
Social Activities
Information

https://www.thepack.co.jp/en/environment.html

Mix

Paper from
responsible sources

Printed by: Nishinihon Printing Co., Ltd. (2306)

Sustainable

Editorial Policy/Purpose/Basic Policy of Sustainable Management/Philosophy Structure

management
The Purpose of The Pack Group’s Existence

Paper bags

Mission to bolster
social prosperity andcreating satisfaction
through packaging
Basic Policy of Sustainable Management
As is expressed in The Pack Group’s corporate motto, we are passionate and dedicated to ourpartnerships in all our activities. Furthermore, we pursue sustainable management in keepingwith the purpose of our existence (purpose): to provide packaging solutions to contribute to aprosperous society and bring satisfaction to people. As a company offering total solutions
related to packaging, we help solve the many issues facing our stakeholders through thecreation of new value in packaging, thereby contributing to a prosperous and sustainable
society. To this end, we strive to deliver environmental, social, and economic value that is
unique to The Pack Group, based on sustained growth and the ability to adapt to social change.

Film packaging

Philosophy Structure of The Pack Group

Plastic bags

Passionate and Dedicated to Our Partnerships

Corrugated boxes

Corporate
motto

Flexible packaging

Purposeof our existence

Folding paper cartons

Mission to bolster social prosperity and creating satisfaction
through packaging

Contents
01 Editorial Policy
02 Purpose/Basic Policy of Sustainable

Management/Philosophy Structure
03 Message from the President
05 Materiality
07 Medium-term management plan

E Environment

09 Resolving environmental issues through businessactivities
10 Reducing Environmental Impact throughout ourBusiness Activities
13 Product Planning and Technology Developmentin Consideration of the Environment
15 Contributing to Nature Conservation andEnvironmental Preservation

01

THE PACK CORPORATION CSR Report 2023

 We value and nurture people.

S Society

17 Enhancing Employee H Materiality ealth andEnsuring Their Safety
18 Fostering and nurturing the ability to provide total
packaging solutions
19 Promoting Diverse Work Styles that Allow
Employees to Play an Active Role in the Company
21 Quality Maintenance and Improvement throughCollaboration with Business Partners
22 Contributing to the development of the next
generation’s employees and raising awarenessabout the environment

G Governance

24 Ensuring Soundness, Transparency, and Efficiency
of Management

 We seek to accommodate society’s every change.

Corporate Philosophy

Editorial Policy

Shares of sales

This Report has been prepared to disclose information about The
Pack Corporation to stakeholders and to help them understandour CSR activities. This Report also serves as tool for employee
education. Based on growing interest in issues related to theenvironment, society, and governance (ESG), this Report reviews
our various activities in related categories.

Other (Supplies, etc.)

Paper products

Film packaging(plastic bags,
flexible packaging,film packaging)(Paper bags)

Period covered by this Report: While this Report basically covers
the period of FY2022 (January 1 – December 31, 2022), it includes
some information from before and after this period.
Organization covered by this Report: The Pack Corporation
Section preparing this Report and contact point: IR & Public
Relations Department, The Pack Corporation
Address: 2-8-4 Tomigaya, Shibuya-ku, Tokyo 151-0063, Japan
Tel.: +81-3-3469-1221; fax: +81-3-3469-1353
E-mail: koho@thepack.co.jp

the global environment and other issues.

 As a company offering total solutions related to packaging, we seek

to contribute to societal development and to thriving societies.

15.9%

13.4%

 We fulfill our social responsibilities by promoting initiatives related to

70.7%

FY2022sales

89,060
million yen

Basic Policyof Sustainable Management

29.5%(Folding paper
cartons)

25.0%(Corrugated boxes)

Materiality(Important Issues)▶ P.05

13.7%(Printing)

2.5%

Medium-Term Management Plan
▶ P.07

 Contributing to a sustainable society Delivering value from The Pack Group Resolving environmental issues through business activities
 We value and nurture people.
 Building and deepening relationships of trust withbusiness partners and customers
 Contributing to the development and prosperity ofsociety Reinforcing management foundations
 Achievement targets for December 2025
 Growth strategies
 Human capital strategy
 Financial strategies

THE PACK CORPORATION CSR Report 2023

02

To stakeholders
Message from the President

At the dawn ofsustainable management
The Purpose of The Pack Group(our fundamental mission)sustainable management principles.
In January 2022, we established the Sustainable Business Team as

In terms of finances, we believe that capital investment to support

a new cross-sectional project team operating across the entire

our core business is a top priority, and we plan to invest 6.5 billion yen

The Pack Corporation was established in 1952 as a manufacturer

company. We established the basic policy of sustainable management,

to expand our production capacity for paper containers and paperof corrugated apparel boxes. In the Company’s early postwar years,

the setup of the Sustainable Committee, and its operation system asbags, among other measures. We will also maintain a dividend payout

soon after the end of World War II, we expanded the range of items

the basis for promotion activities. Next, we identified the strengths,

ratio of 30% or more in order to return profits to shareholders.

handled in order to meet customer needs for products and services.

risks, and opportunities related to our value chains so that we canToday, we have developed into a comprehensive packaging manufacturer

reevaluate our capital management strategy, thereby clarifying fivethat handles a wide variety of products, including paper bags, printed

themes and 12 Materialities (important issues).

Message to stakeholders

paper containers, corrugated products, and chemical product packaging.

In recent years, we have focused on proposing packages that help

I took office as President and CEO on March 2022 and am now in

As we mark our 70th anniversary, it’s clear that sustainability willaddress environmental and social issues, and the list of relevant items

my second term. One of my resolutions upon assuming office was tobe a key requirement going forward. Thus, we have decided to clarify

in several Materialities has made it clearer what we need to work on in

embody the corporate motto “Passionate and Dedicated to Our

our purpose (or fundamental mission) both internally and publicly inthe medium to long term. We will continue to strengthen our internal

Partnerships” left by our founding president, Shigenari Morita, in ourorder to demonstrate the value The Pack Group can offer society andstructure, particularly in our sales and manufacturing divisions.

business activities and to pass it on to future generations. President

to keep the entire organization moving forward in the same direction.

We plan to establish KPIs by the end of 2023 to announce concrete

Morita was a business owner who expressed his gratitude to

The Purpose we have defined is “Mission to bolster social prosperity

numerical targets and results that should be achieved. We have also

employees, who had placed their trust in him and who stuck with him

and creating satisfaction through packaging.” From the founding of

expressed our support for the TCFD and are in the process of setting

during the hard times following World War II. He truly cared for theour company to the present day, we have carved out a necessary role

GHG emission reduction targets to achieve this goal, and will report on

happiness of not only his customers but also his employees, saying, “Ain society by providing packaging solutions. We will continue to share

progress and achievements in our next annual report.

company exists to make its employees happy.” This company motto
has taken firm hold within the company over the 70 years of its

a common understanding of our Purpose and provide products andservices that meet the needs of the times, meanwhile demonstrating
our value to society though efforts to reduce the environmental

Medium-Term Management Plan

existence and has become a working credo for many of ouremployees, including myself. Our corporate philosophy and theimpact of our production activities and our various CSR activities. In

The year 2022 was the end point of the previous medium-term

recently formulated Purpose of our existence and Basic Policy ofparticular, we will focus on efforts to solve environmental and social

management plan (FY2020-FY2022). Although it was a period of great

Sustainable Management are based on concepts embodied in the

problems, such as through the use of paper for packaging; achieving

uncertainty due to the COVID-19 pandemic, we were able to expand

company motto. As a member of top management, I believe thatlabor and space savings by combining packaging and machinery;sales in the food and EC industries, which are our key markets.

implementing actions based on these ideas and demonstrating The

achieving resource and space savings through structural design

Meanwhile, we are still facing challenges in expanding our business

Pack Group’s value to society in a sustainable manner will connect

innovations; and developing environmentally friendly packaging.

domain and improving productivity by introducing a key system. The

Morita’s beliefs with those of the next generation.

Promoting Sustainable Management03

medium-and long-term business growth.

new medium-term management plan (FY2023-FY2025) released in

In 2023, we will strengthen the dissemination and promotion ofMarch 2023 is based on a basic policy of sustainable management, and

our Purpose of the existence, Materiality, and Medium-Term Managementtargets consolidated net sales of 107 billion yen and operating income

Plan throughout the entire organization to establish a foundation for
long-term corporate value enhancement.

Recent times have seen increased global awareness of environmentalof 7 billion yen in FY2025. We also aim to achieve numerical targets ofand social issues, human rights, and diversity; accordingly, companies

8% or more for ROE and 8% or more for ROIC in order to maintainmust now manage their businesses with an emphasis on ESG. Over the

secure and stable relationships with our stakeholders. Based on thepast several years we have seen such unpredictable events as a global

Materialities, our strategy will be to continue focusing on sales ofpandemic, international conflicts, large-scale disasters, and a rapid

packaging products that help solve environmental and social issues,

Hideaki Yamashita

depreciation of the yen, underscoring more than ever before the need

especially developing and deepening sales in the food market. In

for appropriate risk management and system reinforcement. I am

terms of human resources, we plan to increase the number ofconfident that the sustainable growth of the Company will be

employees by approximately 120 throughout the Group by FY2025.

President and CEO
The Pack Corporationachieved by creating corporate value from a long-term perspective, as

We will reinforce human capital by securing and developing human

opposed to focusing solely on short-term sales and profits. I am readyresources on an ongoing basis, as well as by improving the working

to fulfill my responsibility by leading the company on the basis ofenvironment and engagement of our employees, thereby leading to

THE PACK CORPORATION CSR Report 2023

We appreciate your continued support of our company.

THE PACK CORPORATION CSR Report 2023

04

Materiality

Materiality

Materiality (Important Issues)
Identification Process

List of Materiality issues organized from an ESG point of view

A set of Materialities (important issues) was identified by the project

Major themes

members centering on the Sustainable Business Team established inMateriality (Important Issues)

January 2022. In July 2022, the project was approved by the Board of
Promoting eco-friendly productplanning and technologicaldevelopment

Directors, and initiatives to resolve the materiality issues areunderway. In the future, we will establish KPIs for each item, formulateaction plans to achieve them, and implement a monitoring system.

Initiatives

Association with SDGs

 Developing, procuring, and supplying eco-friendly raw materials,

including forestry-certified and mixed paper Proposing packaging that requires reduced volumes of raw
materials
 Proposing solutions to improve work efficiency through use of our
packaging Proposing alternative surface processing technologies to replace

plastic laminates Developing alternative paper packaging to replace plastic

packaging Developing reusable packaging
 Developing eco-friendly plastic packaging

We will promote and strengthen these activities and thereby
contribute to a sustainable and prosperous society.

Step

1

Organizing study meetings held by the
Sustainable Business Team, which is amember of the project team that identifies
materiality topics

Theme 01

E

Delivering solutions
to environmental issues
through our businessactivities

The project team has at least one individual from each department
responsible for topics such as sales, quality control, finance, legal affairs,
human resources, general affairs, and business strategy. Multiple study
meetings to date have strengthened the understanding of teammembers regarding terminology and sustainable management at othercompanies. Study meetings have also been held for executives topromote their understanding and discussion of initiatives to help build anarrative on sustainable management and value creation as well as
initiatives related to the Task Force on Climate-related Financial
Disclosures (TCFD).
Step

2

Step

3

Contributing to environmental
conservation and preservation

Identifying themes (issues) for maintaining
and growing our management capital anddefining initiatives for each issue

Promoting employee healthand safety

Theme 02

Valuing and nurturing people

4

S

05

5

THE PACK CORPORATION CSR Report 2023

Building and enhancing
relations of trustwith our business partners
and customers

Contributing to social
development andprosperity

Deciding on materiality topics based on
their importance to stakeholders andto the Company

Submitting the materiality topics throughthe Sustainable Committee to the Boardof Directors for approval

Theme 03

Theme 04

 Transitioning to renewable energy Reducing CO emissions (intensity)

 Appropriately managing industrial waste and reducing emissions;2promoting recycling Preserving and restoring forest and mountain areas

 Establishing a new environment fund to support efforts such as the Planting trees with consideration for ecosystems

preservation and restoration of coasts and rivers
 Investing in efforts that contribute to environmental conservation

Co-creating brand value withour customers

 Maintaining and improving the health of employees and theirfamilies as set forth in the Health and Productivity Management
Declaration

Theme 05

Enhancing managementfoundations

 Promoting product development through training sessions in Developing environments for work styles suited to employee

 Developing teleworking environments and adopting Promoting an action plan to empower women in the workplace Developing employee skills and optimizing assignments throughlifestyles

 Designing remuneration schemes to allow employees to work withpeace of mind and other systems to secure post-retirement plans Identifying and analyzing customer issues and providing solutions
 Collecting information on packaging in Japan and overseas andcommunicating market developments and trends

through digital transformation (DX)
which manufacturing sites participate
communication tools
job rotations

 Building a more open human resource evaluation system
 Providing multifaceted proposals on distribution and logistics

solutions to achieve labor savings, automation, and mechanization® Environment
Fund to preserve forests

 Proposing ways to participate in The Pack Forest

Contributing to developing
future generations and fostering
environmental awareness Holding visiting classes for elementary school students

establishing mass production in partnership with production
subcontractors
 Participating in educational content (including online) Improving quality by enhancing quality control structures
 Establishing eco-friendly logistics systems
 Investing in efforts that contribute to the development of future

generations

 Participating in and supporting activities that lead to increased

environmental awareness Achieving labor savings, automation, and reduced CO emissions by

Promoting supply chain risk
management

natural disasters

specialists who support The Pack as a company offering totalsolutions related to packaging
 Developing and utilizing databases on packaging expertise Implementing joint development of production technologies andSecuring soundness,transparency, and efficiency inmanagement

 Stockpiling disaster supplies to keep employees safe in the event of Improving business efficiency and enhancing proposal capabilities

Maintaining and improving
quality through joint efforts withbusiness partners

Providing solutions toincreasingly diverse social
issues Implementing safety measures at manufacturing sites

 Using the Packaging Laboratory to foster an organization of2

 Support for activities that create jobs for people with disabilities and Proposing total solutions that combine packaging with packing andactivities that assist them in becoming self-sufficient and finding
employment
 Supporting activities of children to support environmental
protection

 Improving corporate governance structures

 Implementing fair and objective decision-making processes forpromoting a PAS system Developing packaging in a way that helps to address labor

shortages

logistics equipment

G
Step

Developing and cultivating thecapacity to offer total solutions
related to packaging
Promoting diverse work styles
that encourage all employees tothriveWe studied how to maintain and grow management capitalcomprising these six types of capital and identified related issues. We
also defined initiatives for each issue as it relates to the environment,
customers, people and labor, local communities and society, andmanagement.

Step Purifying and reusing water used in manufacturing processes

and preservation

Reviewing the value chain and ascertaining
our management capital (strengths)
We examined our value chain in great detail, identifying our uniquequalities and points of differentiation from our competitors.
Based on the findings, we identified our management capital:
financial capital, manufacturing capital, human capital, intellectual
capital, social and relationship capital, and natural capital.

Reducing environmental impact
throughout our businessactivities

 Disclosing information on the status of initiatives related to all

management appointments

principles of the Corporate Governance Code
 Strengthening management soundness through the C-Line(compliance line as the internal whistleblowing system) Improving the quality of disclosure to shareholders and other Strengthening supply chains that can respond to various

 Countering information leaks and system failures associated withprocurement, production, and sales risks
 Enhancing resilience to ensure the appropriate operation ofbusiness continuity planningstakeholders
 Securing diversity among the Board of Directors

cybersecurity risks

THE PACK CORPORATION CSR Report 2023

06

Medium-term
New medium-term management planmanagement plan
Medium-term management plan

(FY2023-FY2025)

Launch of a new medium-term management plan centering on
three key strategies.

Important strategies

The Pack Group will implement sustainable management based on our Purpose (fundamental mission) and Basic Policy of Sustainable Management
and has set numerical targets to be achieved by the fiscal year ending December 31, 2025.
The three key strategies are linked to our response to materiality, and we will deliver the Group’s unique value to society through sustainable growth.

1

We will work to acquire new customers and deepen our relationships with existing customers,

Growth strategy

will promote sales expansion by strengthening sales of primary food paper containers, developing Sales expansion in food markets(including convenience stores andfast-food restaurants)
 Strengthening sales in the EC/mailorder market/logistics industry
 Creating and developing demandin the general distribution retailmarket and other markets

Evolution

Slogan—Start of purpose-based management and Sustainable Management—

Consolidated sales
Target of
Fiscal Year 2025

107

billion yen

Operating income

7

Figure illustrating numerical target achievement
We will develop our business activities in line with our threestrategies, with the goal of achieving consolidated sales of 107 billion

ROE

8billion yen

ROIC

8

% or more

Consolidated sales/Operating income(billion yen)

Consolidated sales

95.5

Operating income

with the Group’s stakeholders, including business partners,
shareholders and employees.
The targets for each industry indicate that the food industry willachieve approximately 28% sales growth in FY2022; thee-commerce/mail order/logistics industry will achieve approximately

6.8

5.9

60

6.4

(billion yen)

107.0

6.7

12

10

7.0

8

6

4.1

40

4

3.2

29% sales growth; and the general distribution/retail/other industry
will achieve approximately 14% sales growth. By item, the target sales

100.0

79.6

78.4

80

94.0

89.0

2

20

growth rates for FY2022 are approximately 20% for paper bags, 22%for printed paper containers, 23% for corrugated boxes, 22% for0chemical product packaging, and 17% for other items.
For details of the new medium-term management plan,
see information posted on the URL.
https://www.thepack.co.jp/dcms_media/other/2023.03.08.pdf

FY2019FY2020

FY2021

FY2022

Human capital strategy

FY2023

FY2024(Estimation) (Estimation)

FY2025(Target)Figure of FY2022

Target of FY2025

ROE

6.4%

8% or more

ROIC

6.4%

8% or more

0

forest products. For the EC industry, we will propose improvements in the style and specificationsof packaging materials and offer labor-saving, efficiency-enhancement, and automation solutions
by capitalizing on our strengths as a comprehensive packaging manufacturer.

Automatic packaging machine

Delivery bags for EC

In order to ensure diverse human resources, we will place particular emphasis on career hiring
and will recruit for sales, manufacturing, and administrative positions. We plan to increase ournumber of employees by approximately 120 (including the hiring of new graduates) in the three Human resource development

120

100

2

materials and processing methods that help reduce environmental impact, and using certified

Boilable pouches
Water-resistantPaper Craft Pouches

 Diverse human resourcesyen. We will also strive to improve our return on equity (ROE) andreturn on invested capital (ROIC) in order to maintain stable relations% or more

focusing on the food and e-commerce markets, which we expect to grow. In the food industry, we

years leading up to the end of FY2025. At the same time, in order to expand opportunities fordiverse human resources to play an active role, we will promote the development of new work

 Optimizing personnel allocation

environments, styles, and systems and optimize the allocation of human resources through the Creating a better working

effective use of talent management systems and the like. In addition, we will continue toenvironment
 Maximizing employee engagement

provide opportunities for skill development and reskilling through training and other3

Financial strategy

 Growth investment to support

business Fulfillment of shareholder
returns

opportunities to promote individual and company growth and revitalization.
In terms of growth investment, we plan to expand our production capacity for paper containers
and paper bags to support our core business, as well as invest in launching new businesses andstrengthening our internal structure. In the area of shareholder returns, we have set a payout
ratio of 30% or more, up from the previous year’s target of 25% or more, and we will be flexible
in buying back our own shares. We will support efficient and continuous growth through an
optimal capital deployment plan.
Plan for Use of Funds (FY2023-FY2025 Total)
Cash inCash out

Cash on hand

Capital investment
6.5 billion yen

Paper container production capacity expansion 2 billion yen
3 billion yen
Paper bag production capacity expansion
1.1 billion yen
Streamlining and labor saving
0.2 billion yen
Energy and resource conservation
0.2 billion yen
OthersSales CF20 billion yen

Strategic investment
14 billion yen

M&A
Renovation of key systems
Investment in human resources

10 billion yen
2 billion yen
2 billion yen

Shareholder Returns
4 billion yen

07

THE PACK CORPORATION CSR Report 2023

THE PACK CORPORATION CSR Report 2023

08

E

Environment

Reducing Environmental Impact throughout our Business Activities

Materiality

Striving to reduce environmental impact

Theme 01

Resolving environmental issues
through business activities

Overview of environmental impact
We’re striving to ascertain and lessen the environmental impact of production activities as a whole.
* The data shown below are for the four plants (the Osaka Plant, Nara Plant, Tokyo Plant, and Ibaraki Plant) and the headquarters and sales groups

Environmental philosophy

Basic policy on environmental activities

We will work to protect our

1. We will promote the development of safe, environmentally friendly products andtechnologies.
2. We will utilize resources and energy efficiently and work to minimize andrecycle waste.
3. We will pursue customer satisfaction through environmental activities.
4. We will actively participate in local and national environmental protection
campaigns.

irreplaceable environment and broadly
contribute to society out of our deep
respect for people and nature as wellto inspire future generations.

INPUT
Raw
materials

Person responsiblefor internal audits
Person responsiblefor internal audits

Electricity

Logistics sections

Promotion office

1,978 thousand m

Headquarters
and sales group

TargetGrowing sales ofSales of Forest Products equal to or

Forest Products*

above those in 2021

Growing sales of

Increasing sales of FSC®-certified

FSC®-certified products

products by 19% vs. 2021

Forest conservation

Planning or implementing forest

activities

conservation activities six times

Nara Plant

Energy conservation

Energy conservation

THE PACK CORPORATION CSR Report 2023

[YoY change +16.5%]
Headquarters andsales as a whole

Total[YoY change ±0%]

[YoY change +11.7%]

30,025 t

445 t

logistics*3

9,220 tLPG

12.7 t[YoY change +3.0%][YoY change +73.4%]

Logistics

Waste
General waste(headquarters and sales as a whole)

Industrial waste(four plants)

Other fuels

172 kL

17,973 t

Customers[YoY change -2.7%]

8.6 t

Recycling rate

99.7%

[YoY change +9.6%][YoY change -2.3%]*1 Based on volumes purchased (four plants)*2 Based on volumes consumed (four plants)*3 The figure for CO2 emissions from logistics refer to those generated by shipmentsfrom The Pack to customers.

Quantity sold1,155,774

Paper bags

1,025,813

thousandcartons[YoY change -1.6%]

Film packaging

1,071,668

thousandbags

Corrugated boxes

91,433 thousand m

thousandpackages[YoY change +11.7%]

2[YoY change -5.3%][YoY change +5.7%]

FY2023
Performance

Result+8.6%〇+45.9%〇

TargetIncreasing sales of forest products by 11%
vs. 2022
Increasing sales of FSC®-certified products

CO2 emissions intensityand for all plants and sales operations in Japan. This is used as a
general indicator of energy conservation because it is unaffected by

10 times

intensity based on processing at domestic plants, for headquarters,changes in sales or production volume.

Reducing CO2 intensity:

Reducing CO2 intensity:

Reductions to below actual 2021 figures

Reduction to below actual 2022 figure

Four plants (per yen of processing)Companywide (per yen of processing)(g-CO2/yen)(g-CO2/yen)

4.00

4.00

3.00

3.00

Reducing CO2 intensity:
Reducing by 25% vs. 2012
Reducing CO2 intensity:
Reductions of 0.5% vs. 2012

6 times〇-6%〇-11.3%〇-25.9%〇-3%〇

by 20% vs. 2022
Implementation of forest conservation activities

Reducing CO2 intensity:
Reducing by 27% vs. 2022
Reducing CO2 intensity:
Reductions of 0.5% vs. 2022

* Forest Products subject to The Pack Forest Environment Fund include bagasse, Forest Light, Custard Color, Sugar Brown, biodegradable rope, etc.
(FSC® C020517)

09

20,360 t

CO2 emissions intensity refers to the volume of CO2 emitted from a

Ibaraki Plant

Tokyo Plant

Four plants

fixed amount of business activities. We calculate CO2 emissions

Osaka Plant
Energy conservation

CO2

Sales,
administration[YoY change -1.0%]

Environmental targets (Reviewed below are the FY2022 targets and results and FY2023 targets.)
FY2022Development,
production[YoY change +9.5%]

3

3[YoY change -11.7%]

26,543 thousand kWh3Folding paper cartons

Measures69 thousand m[YoY change +17.4%]

City gas

Person responsiblefor internal audits

Sewage and public water supply

*2

Gas

Person responsiblefor internal audits

Promotion office

Manufacturing sections

Back-office sections

Logistics sections

Manufacturing sections

Procurement sections

Promotion office

Kyushu sales sections

Chushikoku sales sections

Osaka sales sections

Chubu sales sections

Water(incl. groundwater)

69 thousand m

Top management

Logistics sections

Person responsiblefor internal audits

Promotion office

Tokyo sales sections

Top management

Person responsiblefor internal audits

Person responsiblefor internal audits

4,314 t[YoY change +4.9%]

Nara Plant

Back-office sections

Top management

Person responsiblefor internal audits

Corporate sections

Tokyo Plant

Manufacturing sections

Osaka and Ibaraki plants

Top management

97,832 t[YoY change -11.7%]

Back-office sections

Headquarters, procurement, and sales groups

Subsidiarymaterials*1

Environmental management organization

OUTPUT
Raw materials
procurement

2.00

1.80

1.99

2.02

2.08

3.11

3.10

3.08

2019

2020

2021

2022

2.00

1.00
0

3.02

1.00

2019

2020

2021

2022

Year

0

Year

THE PACK CORPORATION CSR Report 2023

10

E Environment

The total recycling rate for all four plants in FY2022 was 99.7%.

The headquarters, sales group, and the four plants are striving to

CO2 emission increased in FY2022 due to increased processing. As areduce CO2 emissions in various ways, including energy conservation

result of efforts to improve efficiency in the logistics division,

activities and the adoption of high-efficiency equipment. They’re also

company-wide CO2 emissions intensity has been lowered. Industrial

working to reduce industrial waste and boost recycling rates.

waste emissions have also been reduced, and our recycling rate was

99.7

Each plant recycles as much industrial waste as possible in an effort to

99.7

99.7 99.7%

17,592

17,913 t

18,528

reduce the amount of waste ultimately disposed of. Part of the

18,344industrial waste from the loss of manufacturing paper and chemical
Recycling rate (%)

product packaging, and part of the packaging materials that wereVolume of industrial waste recycled (t)used as raw and subsidiary materials are now reused in the market as* Totals may not match due to rounding ofcomponent figures.

CO2 emissions+

Headquarters and sales
as a whole+=

Logistics

Final waste
treatment
volumeCompanywide

20,360 t

17,1179,220 t30,473

430

445

2020

2021

2022

63 t

61 t

63 t

60 t

fuels and other useful resources.

26,8789,259 8,952
463

2019

30,025 t

26,806
11,872

17,481

Osaka Plant

445 t

99.0

Tokyo Plant
99.1

99.1

99.1%

100

5,775 5,729 5,430 5,605 t
2021

2020

2022

2019

2020

2021

2022

2019

2021

2020

2022

2019

2020

2021

Osaka Plant

Tokyo Plant

Nara Plant

9,744 t

7,349
7,166

4,462

4,091

4,869 t
4,435

4,310

2021

2020

2022

2019

2020

2022

2021

4,248

4,478

2020

2019

+

Headquarters and sales
as a whole

2019

2022

2021

1,429
1,402
2020

2021

1,543 t2022=

Companywide

25,741 thousand kWh

22,868

2019

2020

2021

2022

55 t

53 t

48 t

49 t

834

2021

2022

2019

Osaka Plant
10,40026,543 thousand kWh
24,232802 thousand kWh
776

2020

803

2021

2022

2019

2020

Tokyo Plant

2021

2022

11,784 thousand kWh
10,330

6,514
7,084

Nara Plant

2020

99.9

480

433

Final waste
treatment
volume

2019

2020

2021

2022

0t

0t

7t

4t

Final waste
treatment
volume

2019

2020

2021

2022

388

381 t

2019

2020

2021

7t

7t

7t

7t

2022

0t

0t

0t

0t

Final waste
treatment
volume

The chemical substances we use in manufacturing processes are

Thereof (PRTR Act). In addition, in bag and carton production, we aresuitably managed pursuant to the Act on Confirmation, etc. of

making steady progress on switching to safe adhesives free of

Release Amounts of Specific Chemical Substances in the

restricted chemical substances. In FY2022, we reduced the volume ofEnvironment and Promotion of Improvements to the Management

substances subject to the PRTR Act by 13%.

* Excludes power generated from solar power
equipment installed by the Company itself.

Material in which included

2021

2022

2019

2021

3,716 3,782 thousand kWh

2022

2019

2020

2021

2022

TolueneAdhesives

0.8

0.8

0.0

0.0

XyleneAdhesives

0.0

0.0

0.0

0.0

Phthalates

Adhesives

0.5

0.2

0.0

0.0

Boric acid and compounds thereof

Adhesives

1.7

1.6

1.6

1.4

Monochlorobenzene

Adhesives

0.8

0.8

0.0

0.0

Dichloromethane

Offset-printing cleaning solution

0.0

0.0

0.0

0.0

1,2-Dichloropropane

Offset-printing cleaning solution

0.0

0.0

0.0

0.0

3.8

3.4

1.6

1.4

Putting water resources to more effective use

7,771 thousand kWh
6,993

2020

(t)

Ibaraki Plant

3,932

2019

7,351 6,998

99.9 99.9 %

99.9

4,922 4,433 4,845 4,546 t

Total

11,22999.9 99.9 %7,681 7,381 t

Appropriate management of chemical substances

Subject chemical substances

23,64425,50323,429

2020

99.9

99.9

Volumes of Type I designated chemical substances under the PRTR Act (total for all four plants)

Total for all four plants

2019

99.9 99.9 %4,204 tElectricity use

24,668100

Ibaraki Plant

Ibaraki Plant

1,575
2019

Nara Plant

2022

Final waste
treatment
volume7,791

recycled packaging materials, etc.
Some industrial waste that cannot be recycled is recycled into solid

Total for all four plants

2019

Recycling of industrial waste

Total for all four plants

maintained at 99.7%.

18,138

ColumnRecycling of industrial waste

Quantitative changes

2019

3,893

2020

2021

2,237 2,405 thousand kWh
2,423

2022

2019

2,213
2020

2021

2022

The water used at the Tokyo Plant for washing printing ink, paint, andadhesives in the manufacturing process is recycled using a water
treatment facility for use as toilet flushing water. This helps conserve
tap water and counters water shortages by making more effcient useof our limited water resources.
The Tokyo Plant water treatment facility

11

THE PACK CORPORATION CSR Report 2023

THE PACK CORPORATION CSR Report 2023

12

E Environment

Materiality

Compact transportation packaging material“CC-PACK®*”

Product Planning and Technology Development in Considerationof the Environment

CC-PACK® is our original packaging material, developed using our

Product development structure for environmentally-friendly products

expertise as a comprehensive packaging manufacturer. We canprovide conventional products (Gusset width: max. 70 mm) that canalso be used for mailbox posting. In addition, we can also propose

Demand for environmentally-friendly packaging is growing as we strive to achieve a sustainable society. We conduct research and development of

products with structures and designs that match customer products.

environmentally-friendly products from the perspectives of materials, design, and technology. The core product development is carried out by the* CC-PACK is a registered trademark of The Pack Corporation.

Packaging Laboratory and the Materials Development Section, which was newly established in 2022. The Packaging Laboratory is engaged indevelopment, mainly in structural design of folding paper cartons and corrugated boxes, in cooperation with the company’s own plants, etc. The
Development example

companies.

Convenient packaging for in-store pickup
CC-PACK® with handhold

Converting product packaging to paper-based
while also enabling viewing of contents
We developed CRAFTCLEAR®*

Heat sealant on theAward winner in a packaging contest
The Japan Packaging Contest is a competition organized by the Japan
Packaging Institute to develop and promote Japan’s outstanding
packaging and its technologies. The best work of the year isdetermined according to each aspect of the package, including
materials, design, and technology. In the 2022 Japan Packaging
Contest, two of our company’s packages received awards.

1

Material Development Section conducts research and development mainly in the field of materials and technology in cooperation with other

New Product Introduction

ColumnWhen you receive a package at aconvenience store, etc., you can
open the handhold and take thepackage home with you.

inside of the package
provides excellent
barrier properties.

With the goal of reducing amounts of plastic used, we havedeveloped our Craft Series of flexible paper packaging. One featureof all products in the Craft Series is that flexible packaging for foodJapan Star Award (a consumer organization award)

products (film packaging), which used to be made primarily of plastic

ELLEROSE co., ltd.
GREEN BASE Dry Vegetable Series

materials, can now be made of paper. Our latest product is
CRAFTCLEAR®, a paper-based flexible packaging product that also
allows viewing of the contents.
* CRAFTCLEAR is a registered trademark of The Pack Corporation.

Development example
Product features
 Strong barrier and light-shielding properties
 Fully filmless, heat-sealable, paper-based flexible packaging

Clear, paper-based

2

CC-PACK®, 120 mm gusset width, a convenient alternative
to shipping boxes
Gusset width can be widened up to 120 mm, allowing
a wider range of items to be packed

 Paper logo can be displayedThis package is made of CRAFTCLEAR® paper flexible packaging.
It was awarded the Japan Star Award, the highest prize in the contest.
(For details on CRAFTCLEAR®, refer to page 13.)

packaging thatshows the contentsof the package.

Development of an environmentally friendly
nature-derived coating material
To meet the growing demands for environmentally responsible
take-out food packaging, we have developed a safe,
naturally-derived coating material. By applying this treatment topaper trays, we can produce trays that have the same level of oil
resistance as conventional products.

Product Features
 Use of highly transparent paper with a barrier function
 Paper logo can be displayed
 Low environmental impact with flexographic printing

Paper-based flexible packaging with high barrier
and light-shielding properties through thedevelopment of Craft VM Barrier
As part of the Craft series, we have developed the Craft VM Barrier,which has a barrier property equivalent to that of aluminum vapor
deposited film.

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THE PACK CORPORATION CSR Report 2023

Common features of CC-PACK®

Achieving both
environmental
friendliness andhigh levels ofoil resistance The gusset width can be easily changed according to the thickness of theitems to be packed.
 Thick, shock-absorbing material eliminates the need for cushioning
materials.
 Easily recyclable due to mono-material construction
 FSC® certified paper (FSC® C020517) can also be used.

Packaging Technology Award

7R Confectionery inc.
Present Box
Designed as a gift box, this package uses paper to dynamically
express the unique characteristics of a moving ribbon. Anotherfeature is that the ribbon is integrated into the body of the box andacts as a seal, thus allowing it to be closed without the use ofOriginallogo

fasteners such as seals or tape.

Original logo
 Equivalent level of high-performance oil resistance to that of conventional oil

resistant trays Highly secure
 Environmentally-friendly and naturally-derived materials
 Original logo can be printed.

For more information on our award-winning packages, see
the blog.
https://www.thepack.co.jp/blog/thepack/a112

THE PACK CORPORATION CSR Report 2023

14

E Environment

Materiality

Activities of The Pack Forest® Environmental Fund in 2022

Contributing to Nature Conservation and Environmental Preservation

From 2020 to 2021, our employee volunteer activities were suspended, and only the maintenance of our tree plantations commissioned by the local
forestry association was carried out, to prevent the spread of COVID-19. In 2022, when infection rates began to subside, we resumed employee

Activities of The Pack Forest® Environment Fund
We’ve been developing eco-friendly products since 1993, contributing a portion of our sales to fund forestry conservation activities. In 2000, weestablished The Pack Forest® Environment Fund and launched volunteer activities to plant and thin forested areas. We also contribute funding forforestry conservation activities. A portion of this fund is allocated to purchasing saplings and other forestation resources. Several times a year weengage in joint activities with the nonprofit Eco Future Fund (EFF). To date, we’ve planted trees in eight locations across Japan, with the participation
not just of The Pack employees, but customers and the general public.
We remain committed to forest conservation activities suited to community needs in cooperation with government, nonprofit, and local
communities.

volunteer activities and we plan for activities to return to pre-pandemic levels in 2023.

Yoshinocho, Nara Prefecture, conducted
in November 2022
This was our first employee activity in about three years, and a totalof 25 people (including some customers) worked to thin trees. Since
the first year, this site has been planted with a variety of trees,
including horse chestnut, water oak, zelkova, and beech, and thenumber of trees planted now totals more than 3,300.

The Pack Forest® Environment Fund system
Sijonawate-shi, Osaka Prefecture,
conducted in October 2022

Forest conservation activities are underway at eight locations across Japan, funded by a portion of sales from products subject to The Pack Forest
Environment Fund, or calld Forest Products.

PapermakersMaterials
makers

A total of 12 people thinned trees at Fureai no Mori in Shijonawate

Eco-friendly base paper,
non-wood-based paper, etc.

City, Osaka Prefecture. This is the area we planned to conduct forest(e.g., bagasse)

Eco-friendly materials

conservation activities three times a year (spring, summer, and fall)

Forest Products

The Pack

Product proceeds

Customers

Volunteering(e.g., Biodegradable rope)

Volunteering

Donations

Tree planting andforest conservation
activities in Japan
Results of activities to date(cumulative totals as of December 31, 2022)

 Participants: 7,075 people Trees planted: 21,078
 CO2 absorbed: 1,838.91 t
Funding activities

The Pack Forest®
Environment Fund

Subcontractor nonprofit:
Eco Future Fund (EFF)
http://www.eco-future.net/

The Forest Mark

Tree-planting sites

The Forest Mark is our original logo for The Pack Forest® Environment

Seventh tree-planting site
Hidaka, Saitama Prefecture(tree-planting began in March 2012.)

Fund and forest conservation and tree-plantingactivities. It can be
printed on packages certi ed as Forest Products to help customers
inform consumers of their contributions to forest conservation
activities.

Sixth tree-planting site
Takatsuki, Osaka Prefecture(tree-planting beganin November 2009.)
Fourth tree-planting site
Takehara, Hiroshima Prefecture(tree-planting beganin November 2004.)

Details of activities
https://www.thepack.co.jp/en/
environment.html

915

THE PACK CORPORATION CSR Report 2023

PAL Corporation has long supported the activities of The Pack
Forest® Environment Fund. Since 2011, it has been developing its

since our first year, and we have been working with 30 to 50 people.
By thinning cedar and cypress trees and maintaining and repairing
trails, we are preserving biodiversity and improving the local
landscape. The goal is to regenerate the wild forest so that it canserve as a place of relaxation for local citizens.

own forest conservation initiative, the Pal Forest Reforestation
Project, in Yoshinocho, Yoshino District, Nara Prefecture. As of the endof 2022, a total of 400 trees have been planted. This time, a total of 45
people, including our employees, participated in planting seedlings
and trimming undergrowth.

ColumnLetter of appreciation received
from Osaka Prefectural Government
First tree-planting site
Nishiwaga, Iwate Prefecture(tree-planting began in June 2001.)
Fifth tree-planting site
Kimitsu, Chiba Prefecture(tree-plantingbegan in February 2009.)
Eighth tree-planting site
Shijonawate, Osaka Prefecture(tree-planting began in June 2016.)

Third tree-planting site
Onna, Okinawa Prefecture(tree-planting began in October 2003.)

Yoshinocho, Nara Prefecture(PAL Forest Reforestation Project),conducted in November 2022

Second tree-planting site
Yoshino, Nara Prefecture(tree-planting began in March 2002.)

Takehara-city, Hiroshima Prefecture,
conducted in August 2022
Between 2005 and 2015, approximately 170 to 350 people from local
high schools, businesses, and the general public participated in
major tree-planting activities 11 times, planting a total of
approximately 12,600 trees. Later, in 2020, 600 Japanese maple
saplings were planted in a mountain forest that had been damaged
by landslides caused by heavy rains in July 2018. This time, we cut thesurrounding grass so as not to disturb the seedling growth. A total of
29 people participated, including our company employees,

The Company received a letter of appreciation from the Governor of
Osaka Prefecture on January 28, 2022, in light of our contributions toforest conservation over the past five
years at Fureai no Mori in Shijonawate
City, Osaka Prefecture. This activity is
carried out by the Osaka prefectural
government, which mediates between
forest owners and business operators todevelop forests for business operators(Adopt Forest System). We will continue
to be actively involved in these activities
and work for the benefit of the local
community.

customers, and local government officials.
THE PACK CORPORATION CSR Report 2023

16

Society

Secondary examinations(checkup period: April 1 of year indicated – March 31 of following calendar year)
Subject: all employees excluding part-time employees

FY2019FY2020%

Persons%

Persons%

Examined

117

52.7

166

67.2

138

57.8

Theme 02

Unexamined

101

45.5

81

32.8

99

41.4

We value and nurture people.

Resigned after
being informed

4

1.8

0

0.0

2

0.8

222

100.0

247

100.0

239

100.0

Smoking cessation challenge

Enhancing Employee Health and Ensuring Their Safety

Materiality

Health management
Since announcing our health management plan in March 2017, the Company has implemented initiatives to maintain and promote the health of ouremployees and their families. One benefit of health management is the rise in labor productivity expected as an outcome, which will further
contribute to Company development.
Assessment of The Pack’s health management (FY2022 application)

Health management structure

Overall ranking:We work with internal and external organizations, primarily Human
Resources, to implement various measures.
Policy-promoting
departments

External unions, services

Thorough health checkups and secondary examinations

Industrial physician
External health-related service provider

Head ofhealth management(President and CEO)Instruction

Reporting

Head of healthmanagement promotion(Corporate general manager)
Reporting and proposals

Instruction
Outsourcing
Provision

Human resources
department

Collaboration

Instruction

Collaboration
ReportingWest Japan Packaging Health Insurance Union

Policy-implementing
departments

The Pack Corporation

Plants andEmployees’ Association
branch sales offices(Wakataka-kai)
Collabo- Administrative personnel
rationOverview of the Certified Health & Productivity
Management Outstanding Organizations
Recognition Program and our ranking
The Certified Health & Productivity Management Outstanding
Organizations Recognition Program is a program that recognizes
major corporations and small and medium-sized enterprises (SMEs)
that practice particularly outstanding health management, throughinitiatives reflecting community health issues and efforts toward
good health as promoted by the Nippon Kenko Kaigi.

917

THE PACK CORPORATION CSR Report 2023

1901-1950 out of 3169 companies
0.5 (points from the previous score of 48.4)
47.9

Overall assessment:

We provide regular health checkups for all employees, including
part-time employees. The most recent percentages of employees
undergoing these exams, for FY2021, shows that while 100% of
employees underwent regular health checkups, only 57.8% underwent
secondary examinations. More than one quarter of our employees, or
26.6%, underwent secondary examinations. Employees found torequire urgent treatment based on examination results are encouraged
to be examined through letters and telephone calls from public healthnurses with the health insurance society. We will continue to confirm
that employees understand the importance of undergoing secondary
examinations instead of taking checkup results lightly.
* Part-time employees are not included because they may join and leave the company throughout the year.

Regular health checkups(checkup period: April 1 of year indicated – March 31 of following calendar year)
Subject: all employees excluding part-time employees

FY2019Examined

FY2020

FY2021

Persons%

Persons%

Persons

%

940

98.9

913

100.0

899

100.0

Unexamined

10

1.1

0

0.0

0

0.0

Total

950

100.0

913

100.0

899

100.0

Persons who
underwent secondary
examinations

222

23.6

247

27.1

239

26.6

We’re promoting a smoking cessation challenge program for thehealth of employees and their families. At the time of a March 2021
survey, 27% of Company employees were smokers, a figure muchhigher than the national adult average of 16.7% (according to the
National Health and Nutrition Survey by the Ministry of Health,Labour and Welfare). The following initiatives were taken by thehuman resources department, along with thorough promotion of thehealth insurance company’s smoke-free program. The survey
conducted in April 2022 showed 23.7%, down from 27.1% in theprevious period. We will continue encouraging employees to quit
smoking.

November 2021

April 2022

Persons%

Persons%

Persons

%

341

27.1

303

24.3

298

23.7

Smokers

Stress checks
We ask all employees, including part-time employees, to undergo
annual stress checks. We aim to identify any mental-health concerns
swiftly through analysis of individual groups of employees, inaddition to encouraging eligible persons to receive in-person
guidance from a physician based on the results of their stress checks.
Stress checks

Subject: all employees

2018

2019

2020

2021

2022

Number undergoingstress checks (persons)

1,304

1,295

1,274

1,215

1,206

Rate of undergoingstress checks (%)

98.0

97.0

97.2

97.4

96.9

COVID-19 vaccination leave
As part of our efforts to prevent the spread of COVID-19, we have
implemented a special paid vaccination leave policy to protect theMain initiatives① Smoking survey to ascertain current conditions: Smoking rates
published by business site and section② Management smoking cessation challenge: All officers of the rankof division general manager in charge and above pledge not tosmoke during working hours③ Setting numerical targets by business site and section andencouraging smoking cessation: Reporting on progress from time
to time in the in-house bulletin and elsewhere

Materiality

Subject: all employees

March 2021

FY2021

Persons

Total

Smoking rate over time

health of our employees and their families.
Subject

All employees

Dates subject
to the leave

Day of vaccination, day after vaccination if the employee feels
unwell due to an adverse reaction, days when the worker needs toaccompany a family member for vaccination, or days when
nursing care for a family member with an adverse reaction isrequired

Fostering and nurturing the ability to provide total packaging
solutions

Evaluation and support system to improve skills
With the goal of creating a workplace where people can thrive, we introduced a new human resources system in 2020, revising our compensation,
personnel, and evaluation systems. We will also continue to provide financial support for skills training, thus motivating our employees and creating
an environment where they can feel confident to continue working for longer.

Overview of our human resource system
We introduced a new human resources system in 2020 to create aworkplace where people can thrive. In the salary structure, therequirements for salary increases and promotions have been madeclearer. We are increasing lifetime annual income by reviewing
salaries and retirement benefits for younger employees andemployees who continue to work after retirement. As part of theevaluation system, the Human Resources Development Council holds
evaluation meetings throughout the company in an effort to makeevaluations as open and accurate as possible.

Personnel structure(career-improvement stage)
Wage structure

S

Action requirements① Levels ② Job skills qualifications③ HR courses ④ Ranks

Training
systemManagement
by objectives
HR Development Conference (MBO)(decisions on treatment)① Basic skills ② Job skills③ Management skills

HR evaluation① Skills evaluation ② Bonus evaluation③ Overall evaluation① Raises, promotions ② Bonuses③ Career advancement ④ Reassignment

Operation
THE PACK CORPORATION CSR Report 2023

18

S Society
Talent management system

Skills improvement support program

Since 2022, we have implemented a talent management system forentering and confirming personnel evaluations and managing goals.
This is a system that centralizes employee information, such as
personal information, skills, and experience, through digitalization.
We will consolidate the necessary information to streamline
management and use it for the appropriate placement anddevelopment of human resources.

To encourage employee self-improvement, we’ve established a skills
improvement support program that provides economic assistancefor activities such as language learning and earning qualifications.
English and Chinese lessons are provided under corporate contracts
with major language schools operating across Japan. Those learning
English also have the option of online lessons.

All permanent full-time
employees hired(persons)
Women permanent
full-time employees
hired (persons)
Percentage accounted
for by women (%)

Number of persons who used the skills-improvement support program (total)

Women as a percentage of managerial personnel (managers and above)

2018

HR Development Conference

Number of persons
who used the program(total)Based on the results of the performance reviews, talent development
meetings are held throughout the company. At these meetings, weshare information about top talent throughout the company anddiscuss ways to evaluate employees fairly and appropriately. It is also
an opportunity to evaluate the management skills of participating
managers.

Purposeof support

Materiality

Learning
languages

11

2019
9

2020
10

2021
9

Women as a percentage of permanent full-time employees(new graduates) hired(Figures for each fiscal year are as of December 31)

Subject

Details

EnglishCourses available at corporate
contract prices (Incentives are paid for
those who meet certain conditions.)

ChineseEarning
qualifications

Microsoft Office Specialist(MOS: Word, Excel, PowerPoint)
Official Business Skill Test
in Book-keeping, Level 3 or above
Other (those necessary or beneficial toprofessional duties)

Those who pass the qualification
exams are reimbursed the test feesand paid incentives.

Learning

Nikkei TEST

Trainees are reimbursed the test fees.

Promoting Diverse Work Styles that Allow Employees to Playan Active Role in the Company

Diverse human resources

2019

2020

2021

2022

30

39

30

13

20

11

8

11

6

7

36.7

20.5

36.7

46.2

35.0

(Figures for each fiscal year are as of December 31)

2022
23

2018

2018

2019

2020

2021

2022

205

213

208

206

209

7

7

11

10

14

3.4

3.3

5.3

4.9

6.7

All permanent full-time
employees hired (persons)
Women permanent
full-time employees
hired (persons)
Percentage accounted
for by women (%)

Comprehensive reduced working hours
program(Figures for each fiscal year are as of December 31)

This program allows employees whose circumstances involve
responsibilities such as caring for children aged three or older,providing long-term care for family members, hospital treatment, orfamily support to choose from various forms of employment,
including six-hour working days, seven-hour working days, or
staggered working hours. The program was established to support
diverse workstyles based on a comprehensive consideration ofsituations in which standard working hours may pose difficulties.
Launched in 2018, the program was in use by seven employees in 2022.

2018

2019

2020

2021

2022

0

4

7

12

7

Users (persons)* Program began November 1, 2018

Numbers and percentages of employees
taking childcare leave

Promoting women in the workplace
We believe that an environment in which women can thrive isnecessary if all employees are to work in comfort. In 2021, based on
an analysis of various issues related to the creation of working
environments where people can comfortably work over the longterm, we established our targets for the future.
Women as a percentage of permanent full-time employees(Figures for each fiscal year are as of December 31)

2018

2019

2020

2021

2022

All permanent full-time
employees (persons)

865

892

881

841

835

Women permanent full-time
employees (persons)

159

171

176

167

171

Percentage accounted
for by women (%)

18.4

19.2

20.0

19.9

20.5

Action plan on promoting women in the workplace Plan period: April 1, 2021 – March 31, 2026
 Targets:(1) Women accounting for at least 25% of permanent full-time
employees(2) Women accounting for at least 35% of permanent full-time
employees (new graduates) hired(3) Women accounting for at least 10% of managerial personnel(managers and above)
 Issues and initiatives: One issue we face is the low number of women
personnel. This means that women account for a small percentage ofmanagerial personnel. In addition to hiring based on an awareness ofthe gender of new graduates hired, we plan to implement training onunderstanding the issues of diversity, gender, and systemic bias.

THE PACK CORPORATION CSR Report 2023

Employment
rate (%)

2018

2019

2020

2021

2022

1.9

1.9

1.8

1.8

1.6

Technical trainees from Vietnam
The Technical Internship Program helps human resources fromdeveloping countries to bring back to their home countries the skills
and techniques they have acquired while working in Japan, thus
contributing to the development of their home countries in the
future. With a view to making an international contribution andemploying foreign workers in the future, we have been accepting
Vietnamese technical apprentices since 2019. Currently, the trainees
are making printing boxes at the printing press manufacturing site.
They are enthusiastic about their work, and each of them is working
daily on practical training to achieve their goals.
Numbers of trainees accepted

In April 2022, we introduced our own maternity and paternity leave
to make it easier for men to take paternity leave. To support your
spouse’s childbirth and child care, you will be entitled to 20 days of
paid leave from before the child’s birth to the child’s second birthday.
In addition to parental leave, we have created an environment thatmakes it easier for employees to take leave.
Numbers and percentages of employees taking childcare leave(Figures for each fiscal year are as of December 31)

Subject: all employees excluding part-time employees

2018

2019

2020

2021

2022

Number of employees
taking childcare leave(male)

8
(1)

7
(0)

10
(0)

13
(0)

10
(1)

Percentage of
employees taking
childcare leave (male) (%)

100
(13)

100
(0)

100
(0)

100
(0)

100
(10)

Number of employees
taking our own childbirthand childcare leaves*

−

−

−

−

3

* Program began April 2022.

919

The company opened an office in Kainan City, Wakayama Prefecture,in April 2022 to support the employment of people with disabilities.
A total of six people have started here, who are involved in manual
processing of paper bags and paper containers. We will continue todevelop and improve the working environment so that employees
can work in a safe environment with a sense of satisfaction. In
addition, we will strive for continued employment with thecooperation of support schools in the prefecture.

Employment rate of those with disabilities

Users of the comprehensive reduced working hours program*With an emphasis on human resource development, The Pack maintains comfortable workplaces where diverse human resources can demonstrate
their individuality and abilities. We will continue to respond to changes in society and develop attractive systems.

Employment of those with disabilities(Figures for each fiscal year are as of December 31)

Trainees(persons)

2019

2020

2021

2022

5

5

10

5

Training for understanding diversity
We conducted training in an e-learning format to create a workplace
where employees understand diversity and respect each other. Thistime, we broke the training down into three sessions on LGBTQ issues
to learn about sensitivity and the idea of psychological safety. We
want to be able to apply these ideas in the workplace.
1st session

Let’s think about diversity

2nd session

Know about LGBTQ

3rd session

Workplace and LGBTQ

THE PACK CORPORATION CSR Report 2023

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S
SocietyS

Theme 03

Theme 04

Building and deepening a trustful relationshipwith business partners and customers

Contributing to the development and prosperityof society as a total packaging solutions company

Society

Quality Maintenance and Improvement through Collaboration
with Business Partners

Materiality

Materiality

Quality Control

Social Contribution Activities

The Pack’s Quality Policy calls for “Increasing customer satisfaction through enhanced quality.” To ensure high-quality products, we’ve established a

As a member of the community ourselves, we engage in a wide range of activities to build relationships of trust and to move forward alongside otherquality control organization. We implement quality and safety activities and training and make continual improvements in response to complaints ormembers of our local communities.

irregularities. We remain dedicated to initiatives in which all employees take part, based on the Quality Policy, to ensure that we can deliver safe,
reliable products to our customers.

Hands-on manufacturing classes

Exhibition at Higashiosaka Monozukuri WEEKA quality control organization has been established at four domestic plants and the headquarters, procurement, and sales groups to unify quality

The city of Higashi-Osaka, where the Osaka Plant is located, is one of

We displayed our booth at the Higashiosaka Monozukuri Week incontrol and improve operations.

Japan’s leading manufacturing centers. It produces a wide range ofMarch 2022 at Mitsui Outlet Park Osaka Tsurumi. This workshop was

products that support society. The city is currently promoting aheld with the aim of promoting the appeal of the city and the“Monozukuri no Machi Higashi-Osaka” (“Higashi-Osaka: A City ofconcept of the SDGs. Our company provided a paper-making

Manufacturing”) program, including hands-on manufacturing classes

experience for participants of all ages.

Person responsiblefor quality management

Person responsiblefor quality management

Person responsiblefor quality management

Person responsiblefor quality management

for elementary-school students, contracted to the nonprofit
Quality assurance section

Manufacturing sections

Technology sections

Logistics sections

Sales sections

Back-office sections

Quality control sections

Manufacturing sections

Technology sections

Logistics sections

Higashi-Osaka Organization for Region Innovation. We haveBack-office sections

Quality assurance section

Quality control sections

Quality control
supervisory division

Quality control sections

Manufacturing sections

Top management

Technology sections

Top management

Logistics sections

Top management

Back-office sections

Top management

Sales sections

Nara Plant

Procurement andquality control

Tokyo Plant

Sales coordination
sections

Osaka and Ibaraki plants

Back-office sections

Headquarters, procurement,
and sales groups

Declaration of partnership building
In order to strengthen coexistence and cooperation throughout the
supply chain, the company announced the Declaration of Partnership
Building in July 2022. The Declaration will be publicized internally andexternally, and efforts will be made to ensure its smooth
implementation and enhance the value of the entire supply chain.

Declaration of Partnership Building

21

Contributing to the development of the next generation’s
employees and raising awareness about the environment

THE PACK CORPORATION CSR Report 2023

For details, refer to The Pack’s Declarationof Partnership Building
https://www.biz-partnership.jp/
declaration/12973-05-06-osaka.pdf

Details on the Declaration of Building a Partnership
We will focus on the following points to build new partnerships andpromote cooperation, coexistence, and co-prosperity with our supply
chain business partners and related value-added companies.
1. Coexistence and co-prosperity throughout the supply chain andnew collaborations across scale and affiliation: The Company willdevelop innovative raw materials by utilizing the technologies andknow-how of the Company and its suppliers, thus establishing asystem of cooperation, coexistence, and co-prosperity between thetwo parties.
2. Adherence to Promotion Standards: We will actively comply withthe promotion standards established for the benefit ofsubcontractors, including the method used to determine
subcontractor income, and work to correct any circumstances that
may hinder the development of relations between our partners.

participated in this program since it was launched in FY2002, sending
employees to 10 or so schools each year to share the enjoyment of
manufacturing with the students. We visited six schools in the city in
2022 and delivered lectures to a total of 431 people. We will continue
to contribute to the development of future leaders.
Results of this activity to date (cumulative totals through the end of FY2022)
Student
participants

15,735(15,194 through visiting classes, 541 through watching a video)“Shigoto no Tobira” job introductions(YouTube, Next Generation Career Education)
We are producing and posting videos of our company to support theonline social studies field trip “Shigoto no Tobira.” Shigoto no Tobira isa website that features videos introducing companies andorganizations to help children deepen their understanding of workand society and develop the ability to learn and think for themselves.
We hope this will help educate the next generation and deepen theirunderstanding of careers.

Gakken Kids Net “Shigoto no Tobira”
The Pack Corporation
Packaging Workhttps://kids.gakken.co.jp/shinro/
tobira/company/thepack/
THE PACK CORPORATION CSR Report 2023

22

S Society
Sponsoring the Kids Earth Fund

independence of people with disabilities through the operation ofFounded in 1988, the Kids Earth Fund (https://www.kidsearthfund.

Company is also willing to allow use of parallel art drawings in thejp/en/) provides children around the world devastated by disease,

G

Governanceour website and the management of events and classrooms. The
graphic design of packaging.

war, and disaster with art supplies and other supplies, as well as
provides self-care services through workshops. Pictures drawn by the

Theme 05children are converted to revenue through use in companies’
product designs. The funds generated are used to support children.
As an official corporate member, we use the images created from theKids Earth Fund as part of the graphic designs for packages forcustomers who so request.

Donations to Yoshinoyama HoshoukaiStrengthening governance

Each year, we make a cash donation to Yoshinoyama Hoshoukai, anorganization that works to preserve historical sites, places of scenic
beauty, and cultural assets in Mt. Yoshino. Yoshino is one of ourcompany’s plantation areas, where employees are involved inconservation activities to restore the forest. We will continue to makeMateriality

Ensuring Soundness, Transparency, and Efficiency of Management

donations that support the protection and preservation of Mt.
Yoshino.
We’re keenly aware of the importance of corporate governance. On that basis, we’re developing structures to improve management efficiency,
establish sound corporate ethics, and monitor management activities to ensure that all these responsibilities are effectively discharged. In addition,
we strive to achieve sustained corporate growth and medium- to long-term increases in corporate value by proactively applying the Corporate
Governance Code established by the Financial Services Agency of Japan and the Tokyo Stock Exchange.

Corporate governance structure

Paralym Art
Paralym Art (https://paralymart.or.jp/association/) is a website where

General Meeting of Shareholders
Appointment, dismissal

disabilities. We support the social participation and financial

Appointment, dismissal

Board of Outside Officers
Cooperation

Responses

Expressing opinions,
proposalAudit and Supervisory Board

Board of Directors

ESG investment
ESG bond allocation and social bond purchases
In 2021, we set an investment limit of 500 million yen for ESG bonds.

Carbon neutral fund No. 1 investment project
Investment in a limited liability partnershipWith this investment quota, we will fulfill our social responsibility by

We have concluded an investment agreement with Carbon Neutral

continuously purchasing social bonds (bonds issued to financeFund No. 1 Investment Limited Partnership as a limited partner. The

projects that contribute to solving social problems) and green bonds

fund invests in power generation companies that produce renewable(bonds issued to finance projects that improve the environment).

energy and also maintains a consistent process of using renewable

Accounting Auditor

Oversight
Inquiries
Account
auditing

Responses, reporting
Cooperation

Sustainable Committee
Internal audit
Cooperation

Audit Office

Cooperation
ReportingInstruction

Business auditing

Reportingonimportantmatters

ReportingInstruction and oversighton important policies and proposals

Recommendations

Compliance Committee

Instruction on
policies and measures

Bueiness units and subsidiaries

Compliance guidanceNomination Committee,
Remuneration Committee(optional)

Reporting, recommending
improvements, and disposition

Conference of Business Divisions

Cooperation

Legal Department

Inquiries

Investigation,
instructing improvements
Reporting, consultation

Attorneyscompanies and organizations can purchase art made by people with

Convened for deliberationin response to individual
matters

Compliance Officer
Reporting

C-Line Contact
Whistleblowing on
legal/regulatory violations, etc.

energy at the fund’s affiliates. We will continue to contribute toSummary of purchased social bonds

923

Brand

The 66th Japan Student Services Bond

Length of time

2 years

Amount issued

30 billion yen

Date of issuance

February 8, 2022

THE PACK CORPORATION CSR Report 2023

solving the challenges associated with the achievement of carbon
neutrality in Japan.
Summary of funds with concluded contracts
Name of the project

Carbon neutral fund No.1 investment limited
partnership

Operating company

Z Energy Co., Ltd.

Duration period

Up to 26 years

Investment target

Projects for the generation of renewable energythat are subject to the FIT system in JapanAs a company with an Audit and Supervisory Board, we ensure
soundness and transparency in management through oversight ofthe performance of the duties of the Board of Directors byindependent Statutory Auditors and the Audit and Supervisory
Board.
The Board of Directors has nine members, including three outside
Directors. The Audit and Supervisory Board has four members,
including two outside Statutory Auditors. To ensure fairness,transparency, and objectivity in procedures related to the nominationof Directors and operating officers and decisions on matters such as
remuneration, we have established the optional bodies of a
Nomination Committee and a Remuneration Committee.

The membership of each committee consists of Directors (including
outside Directors, one of whom serves as chairperson) appointed byresolution of the Board of Directors. These committees deliberate on
matters related to nomination and remuneration of Directors asadvisory bodies to the Board.
Other efforts whereby we strive to enhance our corporate
governance structure include the addition of an executive officer
system to improve management efficiency and execute businessthrough dynamic decision-making. We have also established a Boardof Outside Officers to allow the exchange of opinions among outside
Directors and outside Statutory Auditors and recommendations to
the Board of Directors, thereby enhancing Board oversight functions.
THE PACK CORPORATION CSR Report 2023

24

G GovernanceConforming to the Corporate Governance Code

Activities status of committee

Role

Personnel
composition
Number ofmeetings held
Contents

Board of directors

Board of auditors

Making decisions on major
management issues andoverseeing the conduct of thebusiness

Monitoring and supervision ofbusiness execution and theBoard of Directors

Outside directors meeting

Nominating committee

Remuneration committee

Information sharing andawareness raising among theindependent external officers

Deliberations andrecommendations on mattersrelated to the appointment or
dismissal of directors andexecutive officers

Deliberations and decision
making on matters relating to the
remuneration of directors andexecutive officers

Five directors(including three
from outside the company)

Five directors(including three
from outside the company)

4 times/year

4 times/year

Nine members(including three
from outside the company)

Four members(including two
from outside the company)

Three outside directors,
two outside auditors

18 times/year

13 times/year

5 times/year

Sustainable Committee
In 2022, we created the Sustainable Committee (chaired by thedata. The Board of Auditors and the Office of Audit provide

President and CEO). The Committee will respond to the promotion of

supplemental audits related to these initiatives.
Sustainable Committee structural chart

Group companies to advise and make decisions on the operation andpromotion of sustainable management, the formulation of policies
on key issues, management of the progress of initiatives, and theBoard of Directors
Inquiries

Sustainable Committee

plan. The Sustainable Committee Secretariat promotes action plans

Chair: President & CEO

and manages KPIs in collaboration with the business units andsubsidiaries.

Auditing

Responses / reporting

incorporation of these policies into the medium-term management

Internal
auditing

Sustainable Committee to share information. Business units andsubsidiaries implement various measures and provide results andAudit andSupervisory Board
Collaboration

which disclosure is required in the Corporate Governance Report, but

Corporate Governancehttps://www.thepack.co.jp/en/company/corporategovernance.html

initiatives regarding all principles.

Assessment of the efficacy of the Board of Directors
To improve the efficacy of the Board of Directors, we implement annual self-assessment surveys of all Directors and Statutory Auditors.
Assessment
methodQuestionnaires on the efficacy of the Board of Directors are distributed to all Directors andStatutory Auditors at a Board meeting each December. The efficacy of the Board is analyzed
and assessed based on all answers collected from the completed questionnaires in a Board
meeting in January of the following year. Efforts to make improvements are based on thesefindings.

Response
formatScoring, with spaces for freeform comments

Response
methodNot anonymous

Pursuant to the Companies Act and the Enforcement Regulations to the Companies Act of Japan, we maintain the internal controls systems neededfor efficient management by securing the propriety of business operations and pursuing business appropriately within the Company and at Group
member companies.

Audit Office

Cooperation

Instruction

Conference ofBusiness Divisions

ReportingOperating sections / Group companies

Basic policy on internal controls
https://www.thepack.co.jp/en/company/basicpolicyoninternalcontrols.html

Compliance structure
In addition to enhancing internal systems, we respond to legal issues based on consultations with outside advising attorneys as necessary inindividual cases. The Legal Department in the Corporate Division strives to enhance structures for management and education regarding matters

Use of independent outside directors and outside auditors

such as laws, regulations, social norms, and contracts with counterparties.

C-Line (internal whistleblowing system)

Protection of personal information

The role of outside directors and outside auditors is to enhance theWe established the C-Line (Compliance Line) as a contact point for

We have established a Privacy Policy and Guidelines on theeffectiveness of corporate governance at our company by using theirwhistleblowing and consultations regarding violations of laws andProtection of Personal Information, which concern matters including

Company and are completely independent. The independence ofexpertise and experience to provide supervision and auditing from a

regulations and similar incidents inside the Company. This system is

why and how we use personal information and how personaloutside directors is in accordance with the requirements of theneutral standpoint.

intended to ensure fair and sound corporate management by raisinginformation is managed and safeguarded.

The Company has appointed three outside directors and two outside

Companies Act and the standards of the Tokyo Stock Exchange.

auditors.
All five have no personal, capital, or business relationships with our

Conforming to the Corporate Governance Codeinappropriate actions, such as violations of laws and regulations; andCompliance training and awareness raisingswiftly detecting and rectifying any improprieties or problems.
information for internal compliance training and to inform employees

The Company is strongly aware of the importance of corporate

monitor the proper conduct of management activities and to

governance and will strive to improve management efficiency andpromptly disclose important information that serves the common

establish corporate ethics. Our basic policy is to establish a system tointerests of our shareholders.

THE PACK CORPORATION CSR Report 2023

awareness of compliance among all employees; preventing

We draw on the corporate intranet and other means to communicate

Basic policy on corporate governance925

website. Here you can find information not just on the principles for

Sustainable Committee Secretariat

The Board of Directors consults with the Sustainable Committee toset policy and provide oversight. The Divisions will work with theinitiatives regarding the Corporate Governance Code, which

Internal controls

sustainable management in our Group.
Committee Secretariat, work with the Divisions, Business Units, andExchange Corporate Governance Report. We also publish ourdescribes the status of corporate governance, on our corporate

Appropriate decision-making
Management soundness is
The exchange of information and With a majority of independent With a majority of independentand management supervision are ensured from the perspective of awareness among independent outside directors, including the outside directors, including thecarried out based on the wealth full-time corporate auditors
Chairman, the Committee
Chairman, the compensation ofoutside directors providesof business experience of internal based on their experience in the effective supervision ofdeliberates on proposals for the directors and executive officers isdirectors in the Company and the Company and from the objective management from an
appointment and removal ofdelegated from the Board.
objective and professional
and professional perspectives of independent and objective
directors and the selection ofperspectives of external
outside corporate auditors.
alternate directors and executive
perspective.
directors.
officers. It also makes
recommendations in response torequests from the Board.

The Sustainable Committee and its executive body, the Sustainable

The Company’s corporate governance is described in the Tokyo Stockof legal information. We also strive to provide training on and to raiseawareness of compliance through training and educational
opportunities, including internal legal courses.

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