Corporate Report 2020

Mitsubishi Paper Mills Ltd.

Editorial Policy

Table of Contents

Mitsubishi Paper Mills publishes the Mitsubishi Paper Mills Corporate Report, which summarizes financial
and non-financial information to provide stakeholders with an understanding of the Group’s overall businessactivities. In these pages, we report on the Mitsubishi Paper Mills Group’s corporate value building activities
which seek to bring about a more sustainable society.

■ Scope

The companies included are Mitsubishi Paper Mills Limited and its consolidated subsidiaries (20 companies
in Japan and 6 companies overseas), as well as its equity-method affiliates (2 companies in Japan and 1
company overseas)■ Reporting Period

The reporting period is fiscal 2020 (April 1, 2019 to March 31, 2020), with some content included from outside
this period.

■ Guidelines Referenced

ISO26000
GRI's Sustainability Reporting Standards
Environmental Reporting Guidelines (2018 Edition), Ministry of the Environment■ Contact

Mitsubishi Paper Mills Limited
General Affairs & Corporate Communications Group, General Affairs & Personnel Department
2-10-14 Ryogoku, Sumida-ku, Tokyo 130-0026, Japan
Phone: +81 3 5600 1487
Facsimile: +81 3 5600 1489
E-mail：csr@mpm.co.jp■ Issued

August 31, 2020 (Previous: August 31, 2019)
Late August 2021

Table of Contents ････････････････････････････ 2

Disavowal of Anti-Social Elements ･･････････ 33

Message from the President ･･･････････････････3

Promoting Social Responsibility in the
Value Chain ･･ ･ ･･･････････ ･･････････････ 33

History and Main Offices and Mills of the Mitsubishi
Paper Mills Group･････････････････････････ ･ 5

Responsible Raw Material Procurement ･･･ ･････33

Management Policies･････････････････････････7

Relationship with the Environment･･･････ ･････ 35

Consolidated Financial and Non-Financial Highlights･･ 9

Environmental Management System ････････ 35

Special Feature

Chemical Substance Management･････ ･････35

Products Contributing to a Sustainable Society･･･11

Preventing Global Warming ･･･････････････ 36

Business Activities ofthe Mitsubishi Paper Mills Group

Preserving Biodiversity ･･･････････････ ････ 37

Overview of Business Segments ･･････････････15

Material Balance･･････････････････････････ 39

Printing Paper Business････････････････････15

Environmental Indicators ･･････････････ ････ 40

Imaging Media Business ･･･････････････････17

Relationship with Employees ････････････ ････ 41

Speciality Materials Business ･･･････････････19

Occupational Safety and Health Initiatives･･･ ･ 41

Research and Development ･･････････････････21

Promoting Good Mental and Physical Health ･･ 41

Mitsubishi Paper Mills Group CSR

Efforts to Create Comfortable Work
Environments･･････････････････ ･････ ･･ ･ 42

Key Issues (Material Issues) Concerning CSR
Activities ･･ ････････････････････････････ 25
Corporate Governance ･･････････････････････ 26
Basic Policy on Corporate Governance ･･････ ･ 26
Corporate Governance Framework･･･････････26

Corporate reports, CSR reports

Board of Directors and Audit & Supervisory
Board Members ･･ ･･････････････････････ 27

https://www.mpm.co.jp/eng/env/report-index.html■ Investor Relations

Outside Directors ･････････････････････ ･･･ 28,
Assessments of the Board of Directors
Effectiveness･･ ･････････････････････ ･･･ 29

Annual Business Reporthttps://www.mpm.co.jp/eng/ir/library/index.html

Annual Report

Effective Use of Materials････････････ ････ ･･ 38

Relationship with Customers････････････ ･ ･････43
Quality Control System ････････････････ ･････43
Product Safety Control System ･････････ ･････43
Communication with Customers ･･････ ･････ ･ 44
Encouraging the Worry-Free Use of
Our Products ･･････････････････ ･････ ･･ ･ 44
Relationship with Communities ･･･････････ ･ ･･ ･ 45
Communication with Community Members ････ ･ ･ 45
Philanthropic Expenditures ････････････ ･ ･･ ･48
Fiscal 2020 CSR Activities ･･････････････ ･ ･･ ･ 49
Fiscal 2021 CSR Action Plan ････････････ ･ ･･ ･ 51
Company Profile and Corporate Data

53

Information Disclosure ･･････････････ ･ ･････30

https://www.mpm.co.jp/eng/ir/library/annual-report.html

Compliance････････････････････････ ･ ･････31■ Products & Services

1

Preventing Corruption ････････････ ････････ 33

ISO 26000 and Initiative of MPM Group･･ ････24■ CSR / Environment

https://www.mpm.co.jp/eng/rd/index.html

Our Website ････････････････････････････ ･ ･･･ 1

CSR Promotion Structure ･･ ････････････････ 23

The Mitsubishi Paper Mills website provides a range of information on subjects that include CSR and theenvironment, investor relations, products and services, research and development, basic data on the company,
and recruitment.

■ Research & Development

Ensuring Fair Trade･･･ ･････ ･･････････ ･････ 33

The Way We See CSR ･･･ ････････････････ ･23

Our Website

Fair Operating Practices ････････････････ ･････ 33

Editorial Policy ･･････････････････････････････1

Mitsubishi Paper Mills Group CSR ･･･････････ ･23■ Next Reporthttps://www.mpm.co.jp/eng/products/index.html

To Our Stakeholders<Cover photo>
Fresh verdure in Murabi company-owned forest(Nishigo-mura, Nishi shirakawa-gun, Fukushima)

Risk Management ･･････････････････ ･ ･････32

2

Message from the President
Mitsubishi Paper Mills Group Corporate Philosophy

A corporate groupthat lives up to the trustof its customers
in the world market

Yukihiro Tachifuji

President andChief Executive Officer

立藤 幸博
Aims of the Mitsubishi Paper Mills Group3

Since its founding in 1898, Mitsubishi Paper Mills has, as "technological Mitsubishi" of the paper industry, contributed
to the development of information media such as printing, publishing, and photography by developing and providing newhigh value-added products that match the times and meet the demand of the times.
As time passes and digital information and communications technology (ICT) advances, the information society istransforming into a social structure that does not require paper as a medium. Amidst these drastic changes in the market
and the management environment, we entered into a capital and business alliance agreement with Oji Holdings
Corporation with the aim of achieving sustainable growth and increasing the corporate value of the Mitsubishi Paper Mills
Group and, in March 2019, we increased our capital through a third-party allocation of new shares, becoming an equity
method affiliate of Oji Holdings.
In fiscal 2020, the Mitsubishi Paper Mills Group started the New Mid-Term Management Plan which is centered on thebasic principle of Strengthening and diversifying the business base for a new stage. We have been vigorously
implementing various measures focused on three key strategies. The first key strategy is to Establish a robust
management base through the alliance with the Oji Group. Under this strategy, in fiscal 2020, besides commencing
operation of a joint biomass power generation business, we also launched several new initiatives, such as integratingproduction of some communication paper, establishing a joint venture company for woodchip procurement, and becoming
a sales agent. Under the second key strategy, which is to Make structural reforms and enrich existing businesses, we put
the household and consumer paper business, which is also a collaboration with the Oji Group, into operation at theHachinohe Mill and established a direct sales framework eliminating external trading companies in the Imaging MediaBusiness (Functional Materials Division). Under the final key strategy, which is to Diversify the business base by fostering
new profit pillars, we have been working to diversify our business by planting the seeds for the next profit pillars, such as
expanding sales of water treatment membrane support substrates and various types of battery separators, commencing
operation of manufacturing facilities for electronic industrial materials at the Kyoto Mill, as well as focusing on digitaltransfer inkjet paper and healthcare-related products.
Going forward, we will aim to continue expanding and deepening our capital and business alliance with the Oji Group.
We will also proceed with strengthening and diversifying our business base, while responding flexibly to the impact onmanagement of COVID-19, which is currently sending shockwaves around the world. We will aim to further develop the
Mitsubishi Paper Mills Group as well as improve corporate value and contribute to society.
We hope for your continued support and encouragement in the future.

A corporate groupthat is always
on the leading edgeof technology

A corporate groupthat contributes
to preserving
the global environmentand creatinga recycling society

We aim to contribute to society by pursuing the world market,
technological capabilities, and the global environment.

Contributing through CSR Activities
The Mitsubishi Paper Mills Group's CSR activities aim to improve corporate value and solve social problems throughtrust and empathy from our stakeholders.
In recent years, there have been demands to apply the sustainable development goals (SDGs) to management incorporate activities. We were one of the first to produce and sell FSC®-certified paper, and we have been working to makesociety more sustainable through our paper businesses.
In fiscal 2020, we worked on Enhancing activities to ensure safety and health and Product development centered on
harmony with society as the two top priority issues. Under Enhancing activities to ensure safety and health, we revised
various personnel systems in consideration of workstyle reform and reviewed training programs with the aim of further
improving the performance of human resources. Under Product development centered on harmony with society, we
worked on developing products that reflect needs, including those of end-users, and commercialized and launched salesof various food packaging papers that contribute to reducing waste plastic.
For fiscal 2021, considering the Mitsubishi Paper Mills Group's business environment and conditions, we have once
again established Product development centered on harmony with society and Enhancing activities to ensure safety andhealth, which unfortunately was not effective in fiscal 2020, as the two top priority issues.
Product development centered on harmony with society is based on the idea of the SDGs, and aligns with Diversifying
the business base by fostering new profit pillars, which is one of the key strategies of the current New Mid-Term
Management Plan. We will work to develop new products that will pave the way to realizing a sustainable society. At thesame time, with a renewed appreciation of the fact that safety and health undergird the Group’s business, we continue
stepping up efforts by Enhancing activities to ensure safety and health.

FSC® C021528

4

History and Main Offices and Mills of the Mitsubishi Paper Mills Group
History

April 1898 Hisaya Iwasaki took over a paper mill operated by the Walsh Brothers in Sannomiya, Kobe, and■ Domestic R&D Facilities

June 1901 Moved the mill (currently Takasago Mill) to Takasago City in Hyogo Prefecture

Tsukuba R&D Laboratory

Process Development Laboratory

46, Wadai, Tsukuba-shi, Ibaraki

3, Aza Maeyamanishi, Nishigo-mura, Nishi

established Kobe Paper Mill Company

February 1917 Constructed the Nakagawa Mill in Katsushika-ku, Tokyo (closed in March 2003)

November 1917 Incorporated and changed name to Mitsubishi Paper Mills, Ltd.

April 1944 Merged with Kyoto Photographic Industry Company, Ltd. and made it the Kyoto Trial Mill (currently
Kyoto Mill), to produce photographic paper

November 1950 Acquired all stock of a manufacturer and seller of non-wood pulp (currently Toho Tokushu Pulp Co.,Ltd.)

April 1966 Constructed the Hachinohe Mill in Hachinohe City, Aomori

April 1966 Merged with Shirakawa Pulp Industry Ltd. and acquired the Shirakawa Mill (currently Hakuryo Paper
Technology Co., Ltd.) and the Kitakami Mill (currently Kitakami HiTec Paper Corporation)

April 1972 Formed Mitsubishi Paper Sales Co., Ltd. (currently Mitsubishi Oji Paper Sales Co., Ltd.) by merging
Ryosan Shokai with CASIWA Co., Ltd.

April 1992 Established Diamic Co., Ltd.

■ Domestic Production Facilities
Takasago MillKJ SPECIALTY PAPER Co., Ltd.

105 Sakaemachi, Takasagocho, Takasago-shi, Hyogo
Principal products: Carbonless paper, thermal paper,
inkjet paper, non-woven fabric products, specialitypaper

7-1 Shimbashicho, Fuji-shi, Shizuoka
Principal products: Chemical paper (decorative
laminate base paper, impregnated decorative
sheets, base paper for wallpaper, masking tapebacking, etc.)

Kyoto Mill

April 2008 Established MP Juarez LLC in Mexico, and commenced inkjet paper processing in North America

1-6-6 Kaiden, Nagaokakyo-shi, Kyoto
Principal products: Printing plate materials,
photo inkjet paper

October 2010 Formed Mitsubishi HiTec Paper Europe GmbH by integrating two German manufacturingsubsidiaries (Mitsubishi Hitec Paper Bielefeld GmbH and Mitsubishi Hitec Paper Flensburg GmbH)

October 2011 Acquired shares of KJ SPECIALTY PAPER Co., Ltd., a chemical-based paper subsidiary of Kohjin Co.,Ltd.

March 2016 Established joint venture with Oji Green Resources Co., Ltd. called MPM Oji Eco-Energy Co., Ltd.
April 2017 Established joint venture with Oji Nepia Co., Ltd. called MPM Oji Home Products Co., Ltd.

March 2019 Issued new shares via a third-party allotment to the Oji Holdings Corporation and became an
equity-method affiliated company of the same

Hachinohe MillAza Aomoriyachi, O-aza Kawaragi, Hachinohe-shi,
Aomori
Principal products: Printing paper, white paperboard,
copier paper

Hakuryo Paper Technology Co., Ltd.
3, Aza Maeyamanishi, Nishigo-mura,Nishi Shirakawa-gun, Fukushima

Main Offices and Mills

Principal products: Pressboard■ Head Office & Branches

Kitakami HiTec Paper Corp.

Head OfficeOsaka Sales Branch

2-10-14 Ryogoku, Sumida-ku, Tokyo(Ryogoku City Core)

1-1, Fushimimachi 2-chome, Chuo-ku, Osaka-shi, Osaka(Sumitomo Mitsui Bank Koraibashi Building)

Shirakawa-gun, Fukushima

1-6-6 Kaiden, Nagaokakyo-shi, Kyoto

May 1994 Established the subsidiary Mitsubishi Imaging (MPM), Inc. in New York, U.S.A.

November 2007 Established Zhuhai MPM Filter Ltd. in China, and commenced filter product processing in China

Toho Tokushu Pulp Co., Ltd.
(Oyama Mill) 340, O-aza Mamada, Oyama-shi, Tochigi(Kitakami Mill) 35, Sasanagane, Aisari-cho,
Kitakami-shi, Iwate
Principal products: Non-wood pulp

MPM Oji Home Products Co., Ltd.
Aza Aomoriyachi, O-aza Kawaragi, Hachinohe-shi,
Aomori
Principal products: sanitary paper

MPM Oji Eco-Energy Co., Ltd.
35-10 Aza Kaigan, O-aza Kawaragi, Hachinohe-shi,
Aomori
Principal business: Biomass power generation

35, Sasanagane, Aisari-cho, Kitakami-shi, Iwate
Principal products: Photographic base paper,
sanitary paper■ Overseas Production and Sales Facilities■ Domestic Sales Locations

5

Kyoto R&D Laboratory

Mitsubishi Oji Paper Sales Co., Ltd.

Diamic Co., Ltd.

2-10-14 Ryogoku, Sumida-ku, Tokyo(Ryogoku City Core)
Offices: Osaka Office, Nagoya Office,Tohoku Office, Kyushu OfficePrincipal business: Sale of paper and chemicals, etc.

2-10-14 Ryogoku,Sumida-ku, Tokyo(Ryogoku City Core)
Offices: Tokyo Branch, Osaka Branch, Sapporo Office,Sendai Office, Nagoya Office, Fukuoka Office, plus
five other sales offices in Japan, and one officeoverseas
Principal business: Sale of printing plate materials,
information materials and related equipment

Mitsubishi HiTec Paper Europe GmbHZhuhai MPM Filter Ltd.

(Bielefeld Mill)
Niedernholz 23, D-33699 Bielefeld, Germany(Flensburg Mill)
Husumer Strasse 12 D-24941 Flensburg, Germany
Principal products: Carbonless paper, thermal paper,
inkjet paper

17 Yijing Lane, Pingsha Town, Jinwan District, Zhuhai,
Guangdong, China
Principal products: Various filters

Mitsubishi Imaging (MPM), Inc.
555 Theodore Fremd Avenue, Rye, NY 10580
Principal business: Sale of paper andphotographic/printing plate materials

6Management Policies
Impact of the Novel Coronavirus◇ Synergies through Joint Procurement

To protect the lives and safety of employees in response to the increased risk of being infected by the novel
coronavirus, the Mitsubishi Paper Mills Group has taken measures that include staggered work hours, working in shifts,
and reduction of opportunities for contact at our production sites. We have also taken measures to prevent infection,such as implementing remote working in sales and administration departments.
A negative impact from COVID-19 is unavoidable due to restrictions on leaving home and the cancellation of events,
which has led to an acceleration in the decline in demand for printing and communication paper and is also affecting theimaging media business field for image output. We are addressing this situation by consolidating our “defensive”
business, which includes maintaining a production system in line with ups and downs in demand while placing workers
on furlough.
On the other hand, due to increasing hygiene needs, demand for household and consumer paper and filter-related
products has risen, while businesses such as power generation are essential for supporting social infrastructure. In
addition, paper, which is used in diverse aspects of life, has a key mission in underpinning society. We will respondflexibly to the dramatic and sudden changes brought about by the COVID-19 pandemic and also continue devoting
efforts to such “offensive” aspects of business.

New Mid-Term Management Plan (FY2020 – FY2022)
Under the basic principle of Strengthening and diversifying the business base for a new stage, we have been
vigorously implementing the New Mid-Term Management Plan aiming to achieve sound and sustainable growth for theGroup and maximize corporate value over the medium- to long-term with three key strategies:① Establish a robust management base through the alliance with the Oji Group;② Make structural reforms and enrich existing business; and③ Diversify the business base by fostering new profit pillars.

◇ Joint Biomass Power Generation Business

Mitsubishi:Hachinohe

Oji:Yonago
Oji:Kasugai◇ Centralization of the Carbonless Paper Business

In November 2019, it was agreed to transfer the carbonless paper production and sales business of Oji
Imaging Media Co., Ltd. to Mitsubishi Paper Mills, and the business was officially transferred in July 2020 after
adjustment of the sales network. This is expected to expand market share and improve profitability, and we will
aim for at least a 35% share of the domestic market going forward.

Thinking it essential to create a company-wide development framework to further transform our businessportfolio and expand functional materials where growth is expected going forward, such as filters, nonwoven
fabric products, electronic industrial materials, and chemical paper, we centralized our research units and newly
established the Research and Development Division in January 2020. In June 2020, we also merged the
Imaging Media Division and the Speciality Materials Division to form a new Functional Materials Division. We willcontinue to accelerate global business growth by fusing our distinctive technological base for functional
materials with products, based on an efficient framework for business management.

■ Diversify the business base by fostering new profit pillars◇ Expand in Nonwoven Fabric Growth Sectors
Overall view of the biomass power generation plant

MPM Oji Home Products Co., Ltd., which engages in the household and consumer paper business, begancommercial operation in April 2019. It has worked toward stable production and supply based on cooperation
with Oji Nepia Co., Ltd., and while target monthly production was 1,500 t, it achieved monthly production of 1,750
t in March 2020. Amid robust demand for household and consumer paper, MPM Oji Home Products is using the
Tohoku region where the brand is already established as a foundation to expand to Tokyo and other areas of the
Kanto region.

7

In November 2019, the corporate name of our in-house sales agency waschanged to Mitsubishi Oji Paper Sales Co., Ltd. The company concluded an agency
agreement with Oji Paper Co., Ltd. in January 2019, and also concluded an agency
agreement with Oji Materia Co., Ltd. in March 2020. Going forward, too, Mitsubishi
Oji Paper Sales plans to conclude agency agreements with the Oji Group
companies. By doing this, it will work to enhance its product lineup and expand sales
by increasing sales capabilities of sites in Western Japan, where the market share of
Mitsubishi Paper Mills is relatively low.

◇ Reorganization of Business Units and the Research and Development Framework■ Establish a robust management base through the alliance with the Oji Group◇ Household and Consumer Paper Joint Venture◇ Initiatives to Strengthen Sales Capabilities■ Make structural reforms and enrich existing business

Status of Initiatives for the Three Key Strategies

Hachinohe Eco-Energy Power Station, which takes
advantage of the coastal location of the Hachinohe Mill,
started commercial operation in September 2019. With
electricity sales of approximately 360 million kWh in thefiscal year ended March 31, 2020, it contributed 1,200
million yen to the Group’ s consolidated businessperformance. Electricity sales of approximately 530
million kWh are expected in fiscal 2021 with fulloperation throughout the year.

In November 2019, Mitsubishi Paper Mills entered into capital participation in OCM Fiber Trading Co., Ltd. (acompany for joint procurement of imported woodchips with Oji Holdings and Chuetsu Pulp & Paper Co., Ltd.),
establishing a foundation for synergies. We are also making efforts to strengthen our position in negotiations
based on joint procurement, such as by sharing information about market conditions and diversifying
procurement methods. Moreover, as a result of implementing procurement focused on short-distance sources,
and switching to more advantageous raw materials and fuel due to the increase in the volume of information
available, synergies amounted to 900 million yen in the fiscal year ended March 31, 2020.

Sales of battery separators for capacitors and condensers have grown alongside the growth in the IoT andcommunications equipment market, and have started to be adopted for use in industrial vehicle lithium ion
battery applications. Total net sales of battery separators in fiscal 2020 was 600 million yen, up 93% year overyear. Also, use of ultrathin-film EM shielding materials as shielding materials for smartphones is expanding.

◇ Plastic Replacement Products

For products to replace plastic, in which there is a high level of interest as an initiative for the SDGs, we
commenced domestic production of coated packaging paper with outstanding biodegradable and recycling
properties, launching two brands: barricote® and barrisherpaTM. We began sales in May 2020 with the aim ofachieving 2,000 million yen in sales in five years’ time. In addition, we newly commenced sales of paper straws
and packaging paper, which are FSC®-certified products, with the aim of expanding our products in this sector.

FSC® C021528
8

Consolidated Financial and Non-Financial Highlights

The fiscal year runs from April 1 to March 31.

2016

Fiscal Year

2018

2019

2020

216,340

201,955

201,492

Operating Income

3,872

4,313

1,790

Ordinary Income

2,216

2,703

652

△914

Profit Attributable to Owners of Parent

2,217

1,152

3,198

351

801

Capital Investment

4,798

5,995

7,438

12,481

5,525

Net Sales

203,997△40

194,575
1,976
2,696

12,626△2,145

Cash Flows from Investing Activities

Financial Position (100 millions of yen):

200,000

201,955

201,492

203,997

3,500

194,575

3,000
150,000

2,500

100,000

1,976

1,790

2,000
1,500
1,000

19,839△7,07012,809△5,99419,066△8,979

9,976

0

2016

△6,571

2017

2,349

2,374

2,328

2,122

Outstanding Interest-bearing Debt

1,388

1,257

1,193

1,046

1,019

●

492

544

597

664

605

Per Share Information※1 (yen):

64.85

33.72

93.57

10.04

17.96

1,440.45

1,591.00

1,747.54

1,485.64

1,355.27

Earnings per Share (EPS)Management Indicators:

1.8

2.1

0.9

△0.0

1.0

Overseas Sales Ratio (%)

31

30

32

35

33

Equity Ratio (%)

20.5

23.2

25.2

28.5

28.5

Return on Equity (ROE) (%)※2

4.4

2.2

5.6

0.6

1.3

Debt-Equity Ratio (D/E Ratio)※3

2.8

2.3

2.0

1.6

1.7

14,534

14,767

12,264

10,076

11,801

Non-Financial Data:

3,697

3,734

3,723

3,668

3,676

Intellectual Property Rights

1,607

1,639

1,655

1,691

1,588 ※6

92

89

92

94

93

1,066

1,065

1,095

1,037

958

1.155

1.155

1.160

1.155

1.185

Industrial Waste Effective Utilization Ratio※5(％)

2020
（FY）

D/E Ratio
3.0

2.8

1,500

2.8

1,388

A one-for-10 reverse stock split of common stock went into effect October 1, 2016.
Calculations assume this reverse stock split occurred at the beginning of fiscal 2016.
Return on equity (ROE) = Profit attributable to owners of parent / (net assets - non-controlling interest)
Debt-equity ratio = Interest-bearing debt / equity capital
Employees denotes full-time employees and does not include temporary workers
Industrial waste effective utilization ratio = (waste generated - final disposal volume) / waste generated
As part of our continuous maintenance and management of intellectual property, we conducted an intensive inventory of intellectual property,
such as patents, starting in 2019. As a result, the number of intellectual property rights owned has decreased.

2016

△500

Equity Capital（100 millions of yen）
700

1,193

2.4

2.3

●

1,000

1,046

●

1,019

2.2
2.0

2.0

2018

●

664

5.0
3.0

605

597

●

●

●

0.6

544

550

2020
（FY）

ROE（%）
7.0

5.6

2.2

600

2019

Equity Capital & ROE

●

2.6
1,257

2017

4.4

650

1.3

-3.0

1.8
●
●

0

2016

2017

2018

Outstanding Interest-bearing Debt

1.7

1.6

2019
●

2020
（FY）
D/E Ratio

1.6
1.4

-5.0
450

-7.0

400

2016

2017
Equity Capital

Emissions（1,000 tons）
1,100（Incidents）
2,500

2,000
1,655

1,691

2019

ROE

●

2020
（FY）

-9.0

1,588 ※6

1,066

1,065

1.200

1,037

1,040
1,020

1,500

Emission Intensity（tons/product tons）
1.250

1,095

1,060
1,639

2018

Greenhouse Gas Emissions and Emissions Intensity

Intellectual Property Rights

1,607

1.0
-1.0

492

500

1,080

Employees

※4

2019

500

Operating Income Margin (%)

EBITDA (millions of yen)

2018

△40

0

Outstanding Interest-bearing Debt and D/E Ratio

2,407

Greenhouse Gas Emissions Emission
Intensity (tons / product tons)

3,872

4,000

Total Assets

Equity Capital

※2
※3
※4
※5
※6

216,340

Outstanding Interest-bearing Debt
（100 millions of yen）
2,000

Greenhouse Gas Emissions (1,000 tons)

4,313

4,500

500

Cash Flows from Operating Activities

Book Value per Share (BPS)

Operating Income（millions of yen）
5,000

50,000Cash Flows (millions of yen):※1

Net Sales（millions of yen）
300,000

250,000

Profit and Loss (millions of yen):

9

2017

●

1.155

●

●

1.155

1.160

●

●

1.185

1.155

1.150

1,000
980

1,000

1.100
958

960
940

500

1.050

920
0

900
2016

2017

2018

2019

2020
（FY）

2016

2017
Emissions

2018
●

2019
Emission Intensity

2020
（FY）

1.000

10

Special Feature : Products Contributing to a Sustainable Society
Environmentally Conscious Products
The Mitsubishi Paper Mills Group selects and promotes the sale of products that contribute to energy conservation,
resource conservation, resource recycling, prevention of global warming, and preservation of biodiversity over the
lifecycle (from procurement of materials to disposal) of the product or service as environmentally conscious products.

■ barricote® and barrisherpa™, coated packaging paper withbarrier properties and heat sealability

Amid strong calls for measures to counter global warming and theplastic debris in the oceans accompanying the sharply rising global
consumption of plastic for containers and packaging, our packaging
paper is an alternative material that can contribute to reducing waste
plastic.

■ Biodegradable Inkjet Media
Biodegradable inkjet media uses plant-derived biodegradable resin that will
ultimately be broken down into water and carbon dioxide by microorganisms inthe soil.
By replacing polyethylene resin with biodegradable resin, it is anenvironmentally conscious product in which the materials in the paper, ink
absorbing layer and all the other major components will return to earth.
With normal usage, there is little biodegradation, but products begin tobiodegrade once buried in the ground. Our biodegradable inkjet media can beused for diverse applications, including posters, labels, and tags.

《Biodegradability of this media under various environmental conditions》
Biodegradability®

TMbarricote® is an environmentally-friendly coated packaging paper
which is biodegradable and fully recyclable (FSC®-certified paper), which
are inherent properties of paper. A filmless, heat sealable flexible
packaging material for food and daily hygiene products, barricote ®
includes the following features, and offers a product lineup that meets awide range of packaging needs.
① A range of specialized grades for use as primary packaging in directcontact with food and as secondary packaging for the large packages
used in bulk packaging;② Advanced barrier properties against oxygen and water vapor for
primary packaging grades;③ Gravure printability, which is the main flexible packaging printing
technique.
barrisherpaTM is a laminated hybrid product of barricote® and plastic
film. While maintaining the heat sealability and strength of plastic film, it
contributes to reducing the amount of plastic use, and can also be
combined with plant-derived, biodegradable plastic film. For the logo
design, we created a design based on the concept of a tree growing inthe sunlight.

■ Bleached Kraft HD FSC® -certified – MX,

bleached kraft paper contributing to the SDGs

This paper, which features outstanding printability and suitability for the manufactureof bags, is an FSC®-certified bleached kraft paper that contributes to the SDGs throughthe use of paper. Manufactured without the use of fluorescent dyes and in compliancewith Voluntary Standard of Paper and Paperboard Intended for the Use for FoodContact formulated by the Japan Paper Association, the product can be used withpeace of mind for food packaging applications.

11

FSC® C021528

Quick-drying inkjet layer

Normal storage environment( Assumes indoor usage (up to 50°C))

Does not degrade

Soil degradability (in compost)

DegradesBiodegradable resin

Soil degradability (in soil)( Reference conditions: ISO 17556 (JISK6955))

Degrades slowly

Paper

Biodegradability in marine environment

Does not degrade

Biodegradable resin( Reference conditions: ISO 14855 (JISK6953))( Reference conditions: ASTM D7081)■ Paper Straws
FSC ® -certified paper is used for our paper strows which
consider the environment and local communities.
We are strengthening the manufacturing processes and quality
control of overseas manufacturers with a track record of use inplaces such as Europe, the U.S., South America, and South
Korea and importing paper straws that have passed the quality
control of Mitsubishi Paper Mills and can guarantee peace of mind
and safety.
Confirmations are also done by a Japanese analysis
organization with respect to the Food Sanitation Act standards
and the Japan Paper Association Voluntary Standards (heavy
metals testing).
Customized variations such as printing that matches the brandimage of a restaurant are also available.
We hope the straws will be used in efforts to reduce single-use
plastics (plastic elimination and reduction), an area where interest
is rising.

12

COVID-19 Initiatives■ ThermoRewrite®

In terms of COVID-19 initiatives, Mitsubishi Paper Mills created a range of products that take advantage of ourtechnology, facilities, and resources. Through our business, we are making active contributions to support measures toprevent the spread of COVID-19.

ThermoRewrite® is a rewritable thermal recording
material developed by Mitsubishi Paper Mills that candisplay the latest information by repeated printing anderasing. It is not a single-use disposable product, but
can be used many times, contributing to resource
conservation and resource recycling.
ThermoRewrite ® is being used in Japan, Europe,
China, and Southeast Asia for a wide variety of
applications, such as cards for reward points, IDs, andaccess control.

■ Alcohol-based Liquid Disinfectant “pure Leaf room andarticle disinfectant”

Non-sticky type containing at least 70% plant-derived ethanol
In the area of alcohol preparations, for which demand is increasing,
Mitsubishi Paper Mills commenced production and sale of "pure Leaf room andarticle disinfectant." This has a high concentration of ethanol, which is a
powerful disinfectant. In accordance with the notification from the Ministry of
Health, Labour and Welfare on the use of high-concentration ethanol products
associated with the outbreak of COVID-19, this has been formulated with an
ethanol concentration of 70 - 80% and does not contain any methanol. This
product is not a pharmaceutical or a quasi-drug, however, it is possible to be
used in many ways such as cleaning and disinfecting items as a substitution of
ethanol for disinfection.

■ Air Filter

Energy Recovery Ventilator (ERV) core

ERVs are also known as energy-saving ventilation fans. In the case ofregular ventilation, energy for an air conditioner or similar equipment isused to exhaust conditioned air outside as it is. However, ventilation
using a ERV enables the collection of energy (temperature and humidity)
by captured external air from room air that is being exhausted, reducing
energy loss.
Paper is an effective material for energy collection, and a paper filter(ERV core) is the central part of a ERV. Paper made with our uniquespecial-thin paper technology is extremely thin (high temperaturecollection efficiency), high density (high shielding properties so dirty
internal air will not leak into external supply air), and hydrophilic (highhumidity collection efficiency), giving it outstanding energy collection
efficiency. Energy recovery products (energy recovery paper and cores)
using our special-thin paper have been used in ERVs in Japan andoverseas.

■ Collapsible Desktop Partitions

Environmentally conscious Laminated Paperboard

Mitsubishi Paper Mills has commenced production and sales of collapsible
desktop partitions that can be easily installed as a measure against droplet
infection in places where face-to-face seating is unavoidable, such as offices,
schools, cafeterias, and children’s centers. The partitions are made of either
wood cellulose or laminated paperboard, and are manufactured at our mills inJapan and the mill of our Chinese subsidiary. All of the parts are made of thesame type of paper products and are environmentally conscious.

■ Aller Sweep® Filter with Anti-Virus Functionality
ERV core

Our energy recovery paper(0.04mm)Other companies’ energy recovery paper(0.07mm)

Comparison of our product and other companies’ products

13

Schematic and general principle

Inhibits Harmful Substances with the Power of Plant-Derived Ingredients

Mitsubishi Paper Mills produces and sells speciality filters that with diverse
functions, such as deodorizing, dust collecting, anti-bacterial, anti-viral, andanti-allergen. Among our product lineup, there has been an increase ininquiries from air conditioner manufacturers in Japan and overseas about Aller
Sweep®, a speciality filter with a virus-suppressing effect. Aller Sweep® is afilter that uses very safe plant-derived ingredients, such as gingko leaf extracts,
as its principal agents, acting to suppress bacteria, viruses, and allergens
adhering to the surface of the filter.
We have introduced new filter media production equipment at the mill of ourChinese subsidiary to increase production capacity, meeting a broad range ofdemand in Japan and overseas not only for Aller Sweep® but also forcomposite filter media with deodorizing and dust collection components as wellas filters using these composite filter media.

Aller Sweep® filter media

Aller Sweep® and HEPA composite filter

14

Overview of Business Segments
Printing Paper Business

Paper and Pulp Business Sales

Business Results（100 million yen）
In the domestic market, although we worked to maintain prices, 2,000

the slump in demand for both printing paper and communication
paper gained further momentum, resulting in declines in bothsales volume and sales revenue. For exports, although sales
volume increased, mainly in printing paper for Asia, sales revenue
fell due to a downturn in market conditions. We have alreadysuspended operation of papermaking machine No. 4 at theHachinohe Mill to establish a production system in line with ups
and downs in demand. However, given that the decline indemand has accelerated more than expected, we intensified
production cuts from the third quarter of the fiscal year onward
with the aim of tightening demand and supply.
Despite the effect of price revisions since last year, European
subsidiaries recorded a drop in sales revenue, due to a drop insales volume for thermal paper and pressure-sensitive paper in
addition to exchange rate effects. As a result, net sales for all
paper and pulp businesses was ￥146,413 million, down 6.6%
year over year.

Products■ Printing Paper■ Communication Paper

1,900
1,800
1,700

1,643

1,600

1,504

1,522

1,568
1,464

1,500
1,400
1,300
1,200
1,100
1,000

Used for catalogs, pamphlets, and books, among other things
2016

2017

2018

209

2020
（FY）

■ Household and Consumer Paper

Used for copier paper, slips, and receipts among other things■ Pressboard

Business Strategies
In terms of Establishing a robust management base through the alliance with the Oji Group, we established thehousehold and consumer paper joint venture with Oji Nepia according to plan and the carbonless paper business of Oji
Imaging Media was transferred to Mitsubishi Paper Mills.
In terms of Making structural reforms and enriching existing businesses, we strengthened the purchasing base of the
Mitsubishi brand and the Oji brand with Mitsubishi Oji Paper Sales Co., Ltd. and worked to enhance products and boost
sales capabilities.
In terms of Diversifying the business base by fostering new profit pillars, we newly commenced sales of bleached kraft
paper for packaging applications to shift away from printing paper, for which demand continues to decline, and toward
packaging paper, an area where strong demand is expected going forward. For barrier paper that contributes to reducing
plastic, we also commenced production and sample work of products for Japan and the Asian region at our domestic
mills.
We will continue to promote further business cooperation with the Oji Group by advancing shared inter-regional OEM,
reducing logistics expenses, including mutual use of warehouses and distribution, and integrating production brands aswell as shifting away from printing paper and toward packaging paper. At the same time, we will establish a robust
management base and work to rebuild existing businesses and shift product categories.

Popular as household and consumer paper with a high-grade texture■ barricote® and barrisherpaTM

Used as insulating material for transformers, among other things■ Bleached Kraft Paper

Business Topics《Commenced Sales of New Product Margari Light FSC®-certified - MX,
High Quality, Lightweight Coated Bulky Paper》
Although demand for paper media continues to decline due tothe digitization of information media, we create products thatmeet the quality requirements of customers that do use paper.
We commenced sale of Margari Light FSC®-certified – MX, abulky printing paper with outstanding color development andreproducibility that contributes to the SDGs (Sustainable
Development Goals) through the use of paper.
Barrier paper that contributes to reducing plastic usage

15

FSC C021528®

Used in the production of paper bags and shopping bags among other things

16Overview of Business Segments
Imaging Media BusinessBusiness Results

Domestic sales revenue increased as sales remained strong,particularly for photosensitive materials.
In overseas markets, owing to the effect of the alliance, orders
received for photosensitive materials were stable and inkjet paper
enjoyed a rise in demand among emerging countries and forbusiness applications. However, sales revenue declined,
impacted significantly by a slump in demand for existing products.
As a result, total sales for the Imaging Media Business were
￥ 33,607 million, a 4.8 % decrease year- over - year. Operating
income decreased ￥868 million from ￥537 million in the previous
period to record a loss of ￥330 million. The Imaging MediaBusiness recorded sales and profit declines owing to such factors
as lower prices due to appreciation in the value of the yen and arise in production costs in addition to the decline in sales volume
in overseas markets because of the downturn in demand forexisting products.

￥

Products

Imaging Media Business Sales■ Inkjet Paper Products（100 million yen）

●Inkjet paper forfine art

600
500

418

400

389

369

353

・Color paper processing chemicals

300●Inkjet proofing paper
200
100
0

2016

2017

2018

2019

2020
（FY）

The Imaging Media Business is working on the following initiatives as strategies under the New Mid-Term
Management Plan. In the area of resin coated base paper for photographic applications, we are further reinforcing thebusiness base through our alliance with industry partner Fujifilm Corporation, working to streamline the production
system, improve profits, and strengthen competitiveness.
In the area of existing products, we are working to boost sales of products that are nearing maturation by proactively
rolling out products in overseas markets, as well as building an overseas direct sales framework and boost sales
capabilities and ensure profits. In the area of inkjet paper, we are expanding new products. In particular, we havelaunched environmentally conscious inkjet paper that uses biodegradable resin and are working to expand sales ofbusiness applications, such as product labels and ID cards, utilizing its special features. In the area of products forprinting, we are expanding business into the Asian region, which is experiencing marked growth primarily in Thermal
Graphic Arts Film for cardboard and package printing, and will continue to secure profits from existing products.
In the area of new businesses, we are expanding profitability of functional films such as photosensitive resists forelectronic industrial materials through the full-scale operation of coater No. 10 at the Kyoto Mill. We are also making
efforts to cultivate new customers, mainly overseas, for digital transfer inkjet paper in various textile fields ranging broadly
from fast fashion which is suited to inkjet printing. In addition, we will develop and expand sales of new products forelectronics industry-related fields and the medical/healthcare field.

Business Topics
Coater No. 10, which was newly installed at the Kyoto Mill lastyear, began operations smoothly. It is mainly producing new
products related to electronic industrial materials. It is also used forresearch and development and is making a significant contribution
to increasing the speed of new product development. We exhibitednew products and products under development at Asia’s leading
exhibition for electronics R&D, manufacturing and packaging
technology (34th Nepcon Japan ) held in January 2020, and thepositive dry film resists attracted significant attention in particularwith strong industry demand for commercialization.

17

・Mitsubishi Grace Color Paper MG-1000

336

Business Strategies《Kyoto Mill Coater No. 10 》

■ Products for Photography●Environmentally conscious inkjet paper■Products for Printing●CTP (Computer to Plate) printing platesystems

・Silver DigiPlates (SDP)・Thermal DigiPlates (TDP)

and Thermal Graphic Arts
Film (T-GAF)●CTP printing plates fornewspaper printing

・PD-NEWS● Analog printing plate systems

・Silver masters (SLM)●Digital screen mask make systems

・MDS-360 (Mitsubishi on Demand
Silkscreen)/■ Resin Coated Base Paper Products●Resin coated basepaper・For photography

・For inkjet printing
・For sublimation
thermal transfer
printing● Speciality paper

・Processing base
paper
(Release/Casting
paper)

Products made from base paper forphotographic paper・Laminated board(sheet pallets andshielding plates)

TSM (Thermal Screen Mesh)and DST (Digital Screen Transfer)
Sheet pallet■ New Businesses

シートパレット●Electronic Industrial Materials

・Photosensitive resists

・Resist precision etching systems
・Silver nanoparticle ink

・Transparent conductive films (for touch
panels and electromagnetic shields)● Digital signage

・SaiVis (projection screen films)

Photosensitive resists

Diamour● Medical/healthcare

・Diamour, a cryopreservation device for
fertilized eggs
・My Dome, a cover that warms,
moisturizes, and provides restful sleep● Textile digital printing

・Digital transfer inkjet paper

My Dome

Digital transfer inkjet paper

18Overview of Business Segments
Speciality Materials BusinessBusiness Results

Speciality Materials Business Sales（100 million yen）
250

In the Speciality Materials Business, we handle speciality
materials and various chemical papers, such as nonwoven fabrics,
air filters, and rewritable media, and we are taking proactive steps
toward new business in areas related to electronics, theenvironment, and energy conservation.
With regard to speciality materials, sales revenue increased forbattery separators but decreased for rewritable media and water
treatment membrane support substrates. In chemical paper, sales
revenue for impregnated paper for building materials increased but
decreased for decorative laminate base paper, our core product,
as well as wall coverings base and tape base paper. As a result,
total sales for the Speciality Materials Business decreased 7.5%
year-over-year to ￥16,178 million. Operating income increased byapproximately ￥300 million to ￥953 million.

200

169

170

170

175

2015

2016

2017

2018

Products■ Water Treatment Membrane Support
Substrate■ High Heat-Resistant Battery
Separators
Separator heat resistance testing
400℃ After 5 seconds

162

150

100

50

0

2020
（FY）

Business Strategies
As a key strategy under the New Mid-Term Management Plan, we are working to utilize proprietary technologies andexpand sales in Asia, primarily China, as well as in Europe and the U.S. We will work to make steady progress inbusinesses such as nonwoven fabrics which include water treatment membrane support substrates and highheat-resistant battery separators, and filter-related products, decorative laminate base paper, and tape base paper.
In the area of water treatment membrane support substrates, we are expanding sales channels in Asia, primarily
China, and Europe. Sales of battery separators for capacitors and condensers are increasing, and we have commenced
full-scale supply of battery separators for lithium-ion batteries. We are planning to enlarge our nonwoven fabricproduction facilities to respond to business expansion.
In the area of filters, we are targeting the Chinese market, which is experiencing growth in demand for air purifiers,
energy recovery ventilators, and fresh air systems which combine both functions on the back of rising concern withatmospheric pollution and the indoor air environment. We have introduced new production facilities and evaluationequipment at our Chinese subsidiary, and we are reinforcing our sales development, and production systems in China
with the aim of expanding business.
In chemical paper, we are harnessing our detailed customization of products in response to required quality to expand
sales of tape base paper in Japan and Europe. We are also aiming to expand business with the commercialization of
Heat & Fire Resistant Bio-soluble Ceramic Fiber Sheet used as materials in environmental compliance equipment suchas VOC removal devices. We are also working to roll out new products, including Thin EMI Shield Materials for use insmartphone materials based on thinner nonwoven fabric sheets, and paper straws as an environmentally conscious
product.

Used as treatment membrane support substrates in water treatment
elements and contribute to effective use of water resources

Contribute to improved safety of lithium-ion batteries with high heat
resistance■ Air Purifier Filters andEnergy Recovery Ventilator core

■ Thermal Rewrite Cards

Comply with China National Standards (GB Standards )■ Heat & Fire Resistant Bio-soluble
Ceramic Fiber Sheet (Koceran)Re-writeAn economical and resource-conserving information media allowing
information to be repeatedly re-written.

■ Thin EMI Shield Materials

Business Topics《Water Treatment Membrane Support Substrates》
In recent years, with the effective use of water resources under the
spotlight, the water treatment-related business is growing significantly
on a global scale. Mitsubishi Paper Mills produces and sells water
treatment membrane support substrates for reverse osmosis (RO)membranes used in seawater desalination and water purifiers, andflat sheet membrane support substrate used in the membranebioreactor (MBR) method, which has been attracting attention in
wastewater treatment. We will contribute to the preservation of water
resources through our water treatment membrane support substrates.

19

Used in heat resistant materials, VOC removal devices, and as anadsorption base material for dehumidifiersThin nonwoven fabric sheets contribute to the thinning ofelectronics

20

Research and Development
In line with our "Mitsubishi Paper Mills for High Grade and Information Media" philosophy, Mitsubishi Paper Mills
develops and manufactures products in a wide variety of fields that include not only printing and communication paper
but also imaging-related materials and functional materials. At each of our research centers, along with researching ourexisting field of paper and peripheral basic technologies, we are combining the paper technologies we have developed
over the years with silver halide photosensitive material technologies developed in our photo and printing fields todevelop advanced products for our digital society. We are also mobilizing technical capabilities honed through thedevelopment of photosensitive materials, special materials, and other materials to develop printing equipment andsystems as well as new functional materials (electronic industrial materials and amenities fields).
To enrich existing businesses and diversify the business base by fostering new profit pillars, we newly established the
Research and Development Division in January 2020, centralizing research units and rebuilding a Group-wide researchand development structure for the future.
Building a sustainable society is the most important goal for the papermaking industry, whose business base relies onan abundance of forest resources. Combining concern for the environment and dedication to enriching cultural life is thestarting point of all our product development efforts.

Research and Development Expenses（ million yen）
1,200

1,100

FY2020 R&D Expense Allocation

30%

1,000

800

2016

2017

2018

2019

2020
（FY）

Intellectual Property

40%■ Imaging Media Business■ Speciality Materials Business■ Paper and Pulp BusinessIntellectual property is an important asset in developing our business and reinforcing our competitiveness. We submit
applications for more than 200 patents, utility models, and designs a year in Japan and overseas, not only to protect
existing products, but also to raise our profile in new fields. In particular, we are submitting more applications overseas inareas such as the U.S., Europe, China, South Korea, and Taiwan to back up our cultivation of new markets. As of March
31, 2020, we held 542 patents in Japan and 283 internationally. We have also been actively applying for and registering
trademarks to improve customer confidence in our products.

Bases for Product and Technology Development
Tsukuba R&D Laboratory

Leveraging core technologies developed over the years in
nonwoven fabric and paper production, the Tsukuba R&D Laboratory
is developing base substrates for various types of separation
membranes, and paper products that are alternatives to plastic forcontainers and packaging, both of which contribute to achieving theSDGs; and very safe separators for batteries, which are becoming
smaller and more powerful. The Laboratory is working to strengthen
development capabilities and the ability to make proposals tocustomers by adopting new materials and improving its evaluation
technology to meet a wide range of new needs. Additionally,advanced analysis technologies are necessary to develop new
products, so our analysis group is working assiduously researching
and considering new analysis technologies.

21

Using core technologies consisting of the Group's
extensive photosensitive resin, inkjet media, and silver
halide photography technologies, this laboratory isdeveloping and commercializing a range of products
including resist films, which enjoy unique properties in theelectronics industry; micro-structure fabrication systems,
which involves wet processing of difficult-to-processinsulating materials; sensor films for touch panels; andconductor pattern-forming systems that use silver nanoparticle ink. And in the printing field, we have developed
and are now selling a MDS system that can make a screen
printing mask with only data from a PC, without the needfor block copy films, emulsion coating, image development,
or drying processes.

Positive resist film

Cryopreservation device forinfertility treatment (Closed type)

30%

900

Kyoto R&D Laboratory

PPS (polyphenylene sulfide) fiber nonwoven fabric indevelopment

Process Development Laboratory
Production and printing technologies for paper andfunctional materials are rapidly changing, along withcustomers' demands for quality. To respond to thesechanges, we use pilot plants with papermaking machines,
coaters, and calendaring equipment, and use plate making
machines and printing equipment to test prototypes andevaluate quality to quickly get end products and pipeline
products to market. Along with developing production
te c h n o l o g i e s a n d n e w p r o d u c ts , a n d s u p p o r ti n gtechnologies by leveraging the Laboratory’ s equipment
and capabilities, we design and produce product samples
to better convey the features of our products to customers.
Calendaring equipment (while laminating)Coating Flow Analysis Business
MPM CAE Center Co., Ltd. (established in April 2011)
conducts contracted research and provides consulting
services using numerical analysis techniques. It provides
services that meet users' needs through the use of coupledanalysis techniques and high-speed analysis systems. With
its high level of technical expertise, the company has long
been engaged in scientifically analyzing coatings, which
are applied to base substrates, and has created numericalanalysis (computer simulation) technology for optimizing
them.
Leveraging this technology, most recently, we ran
droplet prevention simulations on the collapsible desktop
partitions (see page 14) developed as a countermeasure to
COVID-19 and confirmed their effectiveness.

① 0.02 seconds after ejection② 0.2 seconds after ejection

Hits partition and starts
to disperse

Disperses upwards anddoes not affect the facing
personくしゃみ
Sneezing
starts
吐出開始③ 0.5 seconds after ejection④ 1 second after ejection

Upward dispersal
spreads

Dispersal iscontained

Desktop partition droplet prevention simulation22

Mitsubishi Paper Mills Group CSR
The Way We See CSR

ISO 26000 and Initiatives of MPM Group

Based on the belief that the purpose of CSR is to improve corporate value and solve various social problems byobtaining trust and empathy from everyone, we have positioned CSR as one of the key management issues in ourbusiness activities.
We established the Code of Conduct of the Mitsubishi Paper Mills Group as a materialization of this philosophy. Since
then, we have respected the spirit of the code and dedicated ourselves to putting it into practice.

⇨ Reference site: Code of Conduct of the Mitsubishi Paper Mills Grouphttps://www.mpm.co.jp/eng/company/kensyou.html

Type of information relayed

Organizational Governance・Communication with our customers
・Sharing of environmental data with
suppliers and customers
・Holding explanatory meetings forinvestors
・Enhancement of internal
communications
・Dialogue with the local community
・Issuing integrated reports, etc.
・Provision of information via theInternet

Human Rights
Labor Practices
The Environment
Fair Operating Practices
Consumer Issues

Community Involvement
and Development

The Mitsubishi Paper Mills Group views ISO 26000, an international standard for organizational social responsibility, as
a common indicator for promoting CSR and promotes activities in each field. In this corporate report, we note thefollowing as activities being done for the "seven core subjects" and "issues" of ISO 26000.
Core subjects

IssuesOrganizational
Governance

Organizational Governance

Stakeholders
Customers
Suppliers

Human Rights

Shareholders
Employees

Government

Local Communities
NGOs/NPOs

Labor Practices

CSR Promotion Structure

To carry out the business of the Mitsubishi Paper Mills Group with an emphasis on CSR, we have nominated a CSR
director and have established a CSR committee, which is chaired by the president. The CSR Committee oversees allnine areas of the Group's CSR activities (compliance, risk management, safety and health, the environment, productsafety, product quality, human rights and labor, information, and social contribution).

Technology andEnvironment Department
Director in charge

CSR Director

President

CSR Committee

Supervising office:General Affairs & Corporate
Communications Group

General Affairs &Personnel Department
Director in charge
General Affairs &Personnel Department
Director in charge
Internal Control

Responsible department:
General Affairs & Personnel
Department

Internal Audit Department
Director in charge

23

Product Quality

Responsible department:
Technology & Environmental
Department

Product Safety
Product Liability(PL)Committee

Supervising office:Technology & Environmental
Department

Environment
Environmental Conservation Committee

Supervising office:Technology & Environmental
Department

Social Contribution

Responsible department:
General Affairs & Personnel
Department

Information

Responsible department:
General Affairs & Personnel
Department

Human Rights and Labor

Responsible department:
General Affairs & Personnel
Department

Safety & HealthCompany-wide Safety and Health Committee

Supervising office:General Affairs & Personnel
Department

Risk Management
Risk Management Committee

Supervising office:General Affairs & Personnel
Department

Compliance
Compliance Committee

Supervising office:Legal Department

Asset Protection

Responsible department:
General Affairs & Personnel
Department

Business Effectiveness and Efficiency
Operating Audits

Responsibleoffice:department:
Supervising
General Affairs
Internal Audit Department& Personnel Department

Reliability of Financial Reporting

Responsible department:Internal Audit Department

The

Environment

1. Due diligence
2. Human rights risk situations
3. Avoidance of complicity
4. Resolving grievances
5. Discrimination and vulnerable groups
6. Civil and political rights
7. Economic, social, and cultural rights
8. Fundamental principles and rights at work
1. Employment and employment relationships
2. Conditions of work and social protection
3. Social dialogue
4. Health and safety at work
5. Human development and training in the workplace
1. Prevention of pollution
2. Sustainable resource use
3. Climate change mitigation and adaptation
4. Protection of the environment, biodiversity, andPage mentioned
Mitsubishi Paper Mills Group CSR

Pgs. 23-25

Corporate GovernancePgs. 26-32

CompliancePg. 31

Risk Management

Promoting Social Responsibility in

Pg. 32

Pg. 33the Value Chain

Responsible Raw Material Procurement Pgs. 33-34
Relationship with Employees

Pgs. 41-42

CompliancePg. 31

Relationship with Employees

Pgs. 41-42

Relationship with Communities

Risk Management

Pgs. 45-48

Pg. 32

Special FeaturePgs. 11-14

Relationship with the Environment

Pgs. 35-40

CompliancePg. 31

2. Protecting consumers' health and safety
3. Sustainable consumption
4. Consumer service, support, and complaint andSpecial FeaturePgs. 11-14

5. Consumer data protection and privacy
6. Access to essential services
7. Education and awareness1. Community involvement
2. Education and culture
3. Employment creation and skills development
4. Technology development and access
5. Wealth and income creation
6. Health
7. Social investment

Relationship with Customers

Pgs. 43-44

Preserving Biodiversity

Pg. 37

Responsible Raw Material Procurement Pgs. 33-34

restoration of natural habitats

Fair Operating
Practices

1. Anti-corruption
2. Responsible political involvement
3. Fair competition
4. Promoting social responsibility in the value chain
5. Respect for property rights
1. Fair marketing, factual and unbiased information,and fair contractual practices

ConsumerIssuesCommunity

Involvement
andDevelopment

dispute resolution

Fair Operating Practices

Information Disclosure

Fair Operating Practices

Relationship with the Environment

Relationship with Communities

Pgs. 33-34

Pg. 30Pgs. 33-34

Pgs. 35-40

Pgs. 45-48

24

Mitsubishi Paper Mills Group CSR
Key Issues (Material Issues) Concerning CSR Activities

With the goal of contributing to making society more sustainable through its business activities, the Mitsubishi Paper
Mills Group has set forth the following issues toward satisfying the needs of society.

Process for Defining Issues■ Process 1 Ascertain the circumstances surrounding the Mitsubishi Paper Mills GroupWe analyzed the circumstances surrounding the Mitsubishi Paper Mills Group from environmental, social, andgovernance viewpoints. We then identified issues referencing ISO 26000, GRI, the SDGs and other guidelines, andassessed efforts that are being made with respect to these issues.

■ Process 2 Establish key issues and top priority issues to satisfy the needs of society
We assigned priority to each issue based on how they impact our business and on feedback from stakeholders. We
then extracted key issues that address social needs and from among them established top priority issues based on acomprehensive consideration of our business environment and progress made in addressing key issues.

■ Process 3 Verify the appropriateness of the process

The CSR Committee, a cross-organizational body, verified the appropriateness of our process for determining issues
and established key issues and top priority issues through discussions held at meetings of the Board of Directors.

Key Issues and Top Priority Issues in FY 2021
ISO 26000 Core Subjects

Key Issues （◎：Top Priority Issues）

Organizational Governance/
Fair Operating Practices

Ensuring the effectiveness of corporate governance
Establishing a risk management structure

Thoroughly familiarizing employees with our Corporate

Code of Conduct and the Compliance Conduct Standards

Ensuring strict legal compliance

Promoting communication with stakeholders

Corporate Governance
Basic Policy on Corporate Governance

Mitsubishi Paper Mills’ corporate activities are based on its corporate philosophy: Live up to the trust of its customers in
the world market; Always be on the leading edge of technology; Contribute to preserving the global environment andcreating a recycling society. Under this philosophy, the group pursues corporate group management that values CSR,
enhances management transparency, and augments corporate governance, all to achieve the sustainable growth of thegroup and the medium- to long-term improvement of its corporate value. We have established the Mitsubishi Paper Mills
Limited Basic Policies on Corporate Governance so that we can take concrete steps toward achieving the above, andmake it available on our website.

Corporate Governance Framework⇨ Reference link: Corporate Governancehttps://www.mpm.co.jp/eng/company/governance.html

Mitsubishi Paper Mills has chosen to structure itself as a company with a board of corporate auditors and assigned two
independent outside directors, thereby creating a structure fulfilling the role required by the Board of Directors. We also
divide up the oversight and executive functions, adopting an executive officer system to limit the size of the Board of
Directors, speed up decision-making, and define responsibilities for business execution.
Based on the belief that the purpose of CSR is to improve corporate value and solve various social problems by
To ensure the optimal decisions are made quickly, special meetings of the Board of Directors are held as needed in
obtaining trust a
addition to the regular monthly meetings, and decisions are made about and oversight provided concerning mattersprescribed in laws and regulations, the Articles of Incorporation, as well as for the execution of significant business.
Matters concerning management policy, management strategy, and basic business strategies are discussed at executive
board meetings composed of the main executive officers that are, in principle, held twice a month, as well as atmanagement review meetings composed of small groups of executive officers and senior managers involved in thesubject matter that are held as needed. Our Audit & Supervisory Board, which also includes outside Audit & Supervisory
Board members, holds meetings periodically and as needed.
For business execution, we have adopted a system of business divisions. To strengthen our business execution
structure, we have given these divisions the responsibility for revenue generation and authority to make decisions. In
addition, senior managers including site managers check on the business outlook twice a month in order to share
management status in a timely manner and ensure the implementation of management policy.
In addition, we have a Nomination and Remuneration Committee that, in the interest of maintaining objectivity andtransparency in matters concerning executive appointment and remuneration, is chaired by an independent outside
director and that acts as an advisory body to the Board of Directors.

Expanding initiatives out to affiliated Group companies
General Meeting of Shareholders◀
◀

Reducing environmental risk and impact
Ensuring product safety

Ensuring product quality

Promoting community support activities

Promoting cultural contribution activities

Promoting activities of the Ecosystem Academy

President and C.E.O.

Cooperation
Cooperation

Accounting Auditors ◀
Auditing company ◀

ReportNomination andRemuneration Committee

Internal Audit Department
Audit

Audit

Executive functions

CSR Promotion Structure

15 Executive Officers◀

Community Involvement andDevelopment◎ Product development centered on harmony with society

Election, Dismissal,
and Oversight

Cooperation

Audit
Report◀

Consumer Issues

Board of Directors ◀
8 Internal, 2 Outside ◀
◀

product lineup

Audit

Election and Dismissal◀

Improving and enlarging our environmentally conscious

Audit & Supervisory Board
1 Internal, 3 Outside◀

Promoting activities to preserve biodiversity◀

Promoting activities to prevent global warming

Election and Dismissal◀

Election and Dismissal

performance◀

Promoting various measures to improve human resource◀

The Environment◎ Enhancing activities to ensure safety and health◀

Human Rights/
Labor Practices

Business Divisions and Subsidiaries⇨ The action plan for each key issue is shown in the Fiscal 2021 CSR Action Plan on page 51-52.
25

26

Corporate Governance
Board of Directors and Audit & Supervisory Board Members(as of August 31, 2020)

Directors

Outside Directors■ Somitsu Takehara, Director (Born April 1, 1952)

Important positions concurrently held at other companies, etc.
Representative Director, ZECOO Partners Inc.
Outside Audit & Supervisory Board Member, EDION Corporation (since June 2014)
Outside Director, Genki Sushi Co., Ltd. (since June 2015)
Outside Director, Shinmei Holdings Co., Ltd. (since October 2018)
Outside Auditor, TBS Holdings, Inc. (since June 2020)

Reason for election
Expertise in finance and accounting, extensive knowledge of corporate
management

Board of Directors and Audit & Supervisory Board meeting attendance (FY 2020)
Board of Directors meetings: 14 of 14■ Yoshihiro Kataoka, Director (Born July 30, 1954)
Representative Director, Chairman

Kunio Suzuki

Yukihiro Tachifuji

Director, Managing Executive Officer

Nobuhiro Sato

Representative Director,
President & CEO

Director, Managing Executive Officer

Shinpei Yamada

Representative Director,
Senior Executive Vice President

Yoshiaki Takeda

Director, Managing Executive Officer

Kazuyoshi Ando

Director, Managing Executive Officer

Naoki Okawa

Director, Managing Executive Officer

Shigeharu Sanada

Outside Director

Outside Director

ZECOO Partners, Inc.
Chairman and Certified Public Accountant

Kataoka & Kobayashi LPC.
Partner Chief and Attorney-at-law

Soumitsu Takehara

Yoshihiro Kataoka

Audit & Supervisory Board Members

Number of MPM shares held: 0

Career Summary
January 1977 Joined Peat Marwick Mitchell & Co.
December 1981 Joined Coopers & LybrandJuly 2000 General Manger, Transaction Service Division, Chuo Aoyama
April 2005 Representative Director, ZECOO Partners Inc.
November 2017 Director & Chairman, ZECOO Partners Inc. (to present)

Number of MPM shares held: 0

Career Summary
April 1980 Registered as an attorney-at-law (Tokyo Bar Association)
April 1983 Hosoda and Kataoka Law Office
September 1984 Chief, Yoshihiro Kataoka Law Office
June 1990 Partner Chief, Kataoka & Kobayashi LPC (to present)

Important positions concurrently held at other companies, etc.
Partner Chief, Kataoka & Kobayashi LPC
Visiting Professor, Chuo Law School (since April 2007)
Outside Audit & Supervisory Board Member, The Higo Bank Ltd.
(since June 2011)

Reason for election
Expertise in law and many years of experience in corporate legal affairs

Board of Directors and Audit & Supervisory Board meeting attendance (FY 2020)
Board of Directors meetings: 10 of 10■ Hiroaki Tonooka, Audit & Supervisory Board Member (Born January 23, 1953)

Number of MPM shares held: 0■ Takayuki Nakazato, Audit & Supervisory Board Member (Born June 15, 1958)

Number of MPM shares held: 0

Important positions concurrently held at other companies, etc.
Career Summary
April 1976 Joined Meiji Life Insurance Company (currently Meiji Yasuda Director, The Kitasato InstituteLife Insurance Company) (hereinafter “MY”)
July 2005 Director, General Manager; Group Market Planning & Research
Department, MY
December 2005 Director, MY
April 2006 Director, Managing Executive Officer, MY
July 2006 Managing Executive Officer, MY
April 2008 Senior Managing Executive Officer, MY
July 2012 Director, Deputy President, MY
April 2016 Director, MY
June 2016 Adviser, MY
July 2016 Director, The Kitasato Institute (to present)
Board of Directors and Audit & Supervisory Board meeting attendance (FY 2020)
Reason for election
Board of Directors meetings: 14 of 14,
Expertise in finance and accounting, extensive experience in corporate
Audit & Supervisory Board meetings: 12 of 12
management

Career Summary
April 1982 Joined Mitsubishi Trust and Banking Corporation(currently Mitsubishi UFJ Trust and Banking Corporation)(hereinafter “MUTB”)
June 2010 Executive Officer, General Manager; Corporate Management
Department, MUTB
June 2012 Director, Managing Executive Officer, MUTB
June 2014 Managing Executive Officer, MUTB
June 2015 Senior Managing Executive Officer, MUTB
June 2016 Director and President, Shinwa Building Co., Ltd. (to present)
August 2016 Director and President, Ryoshin Holdings Co., Ltd.
(to present)
August 2019 Director and President, Ryoshin Urban Development Co.,
Ltd. (to present)
Reason for election
Expertise in finance and accounting, extensive experience in corporate
management

Important positions concurrently held at other companies, etc.
Director and President, Shinwa Building Co., Ltd.
Director and President, Ryoshin Holdings Co., Ltd.
Outside Director, PASCO Corporation (since June 2018)
Director and President, Ryoshin Urban Development CO., Ltd.

Board of Directors and Audit & Supervisory Board meeting attendance (FY 2020)
Board of Directors meetings: 14 of 14,
Audit &Supervisory Board meetings: 12 of 12■ Takeshi Kobayashi, Audit & Supervisory Board Member (Born April 11, 1955)

Standing Audit & Supervisory
Board Member

Koichi Nakayama

27

Outside Audit & Supervisory
Board Member

Hiroaki Tonooka
The Kitasato Institute
Director

Outside Audit & Supervisory
Board Member

Takayuki Nakazato
Ryoshin Holdings Co., Ltd.
President

Outside Audit & Supervisory
Board Member

Takeshi Kobayashi
DBJ Capital Co., Ltd.
Chairman

Career Summary
April 1979 Joined Japan Development Bank (currently Development
Bank of Japan Inc.) (hereinafter “DBJ”)
June 2009 Executive Officer and General Manager of Human Resources
Management Department, DBJ
June 2010 Managing Executive Officer, DBJ
June 2011 Standing Audit & Supervisory Board Member, DBJ
June 2014 Member of the Board, Managing Executive Director, Japan
Nuclear Fuel Limited (hereinafter “JNFL”)
June 2016 Managing Executive Officer, JNFL
July 2018 Adviser, Research Institute of Capital Formation, DBJ
June 2019 Chairman, DBJ Capital Co., Ltd. (to present)
Reason for election
Expertise in finance and accounting, great discernment of corporate
management

Number of MPM shares held: 0

Important positions concurrently held at other companies, etc.
Outside Corporate Auditor, Takagi Seiko Corporation (since June 2018)
Chairman, DBJ Capital Co., Ltd.
Outside Corporate Auditor, Keisei Electric Railway Co., Ltd. (since June 2019)

Board of Directors and Audit & Supervisory Board meeting attendance (FY 2020)
Board of Directors meetings: 13 of 14,
Audit & Supervisory Board: 11 of 12

28

Corporate Governance◀

29

Information
disclosure

Financial
Services
AgencyFinancial Services
Agency's website

Mitsubishi Paper Mills' website and other means◀

Issues in the previous effectiveness assessment have been generally addressed. However, the Board of
Directors needs to continue discussions directed at improvements, such as the appointment of female
officers and the introduction of share-based compensation as medium- to long-term incentives. To further
strengthen governance, it is necessary to deepen discussion of management strategy throughcross-divisional exchange of opinions regardless of the jurisdiction of each Director.

Media

◀

d. Other Proposals for Improvements

TSE's website◀

Although these functions appear to be generally working appropriately, it has become more important for
us to discuss management strategy with an awareness of investment and capital costs to improve corporate
value over the medium- to long-term now that the alliance with the Oji Group is fully underway, and it isnecessary to develop systems to more effectively monitor and supervise business execution. Also, theBoard of Directors still needs to address such issues as discussing matters from an ESG perspective andspeaking with outside parties; discussing issues from the viewpoint of the corporate group; investigating thestatus of investor relations (IR) and shareholder relations (SR) initiatives and soliciting feedback fromstakeholders such as employees, customers, and distributors; and considering share-based compensation
as medium- to long-term incentives.

◀

c. Functions of the Board of Directors

Discuss and Verify

Timely disclosure

Tokyo
Stock
Exchange

Stakeholders

The operation of the Board of Directors is deemed generally appropriate with respect to the frequency of
meetings, time required for meetings, the proceedings, and conducting reviews. Although there is a systemfor providing information, which includes sending out materials on important matters in advance, there is aneed to provide information to further deepen discussion and improve operational efficiency. Efficient
operation of the Board of Directors is required so that time can be allocated in proceedings according topriority, allowing sufficient time for important matters such as medium- to long-term management strategy
and investment strategy as well as follow up of matters discussed and resolved in the past.

◀

Stock exchange
information◀

Media reportingb. Operation of the Board of Directors

Directors in Charge
Site Manager(Division General Managers)(Head Office Department Managers)

Prepare documents
for disclosure
Provide information

Department in Charge ofInformation Disclosure

The composition of the current Board of Directors is deemed generally appropriate due to the presence ofindividuals with varied career histories and experience, as well as to the number of members of the Board,the balance among the members, and the knowledge and understanding that each possesses. There are
future issues, such as ensuring diversity, including the appointment of female officers, obtaining a wide
range of knowledge across all departments, and developing human resources.

Information DisclosureManager

General Affairs & Personnel Department /Accounting Departmenta. Composition of the Board of Directors(President and C.E.O.)

Notify of finalized
matters

Information Handling Manager

Analysis and Evaluation of FY2020 Board of Directors’ Effectiveness（3）—Summary of Results

Board of Directors

Director in Charge of the General Affairs &Personnel Departmentb. Operation of the Board of Directors
d. Other proposals for Improvements◀

Information Disclosure System

Questionnaire Topics（2）a. Composition of the Board of Directors
c. Functions of the Board of Directors⇨ Reference site: Disclosure Policy
https://www.mpm.co.jp/eng/ir/disclosure/disclosure_policy.html◀

December 26, 2019 - January 10, 2020 Questionnaire conductedFebruary 10, 2020
Discussions held at Board of Directors meeting◀

Date of Analysis and Evaluation of the Board of Directors’ Effectiveness in FY2020（1）The Mitsubishi Paper Mills Group expresses its commitment to transparency in its business activities in the Code of
Conduct of the Mitsubishi Paper Mills Group. The Group has established and publicized its Disclosure Policy based on
this code and has declared that it will practice the timely and proper disclosure of corporate information. We have alsoestablished Information Disclosure Regulations for ensuring that stakeholders receive an accurate, timely, and fairdisclosure of information on a continuous basis, with our General Affairs & Corporate Communications Group in chargeof managing these efforts. It also regularly holds public relations sessions and manages to the disclosure of information
about the Group. Furthermore, in the interest of fair disclosure, materials from financial result briefings are also disclosed
at the time meetings are held.

◀

Every year, the Board of Directors conducts a questionnaire for Directors and Audit & Supervisory Board Members toanalyze and evaluate the effectiveness of the Board of Directors as a whole. The results of the questionnaire are thendiscussed at the Board of Directors. An outline of the questionnaire and results is provided below. In addition to sharing
the current understanding, the Board of Directors will identify and discuss issues to make future improvements andcontinually work to improve its effectiveness.

Information Disclosure◀

Assessments of the Board of Directors’ EffectivenessCommunication■ IR Information Site
An investor relations page can be found on the Mitsubishi
Paper Mills website. Information is disseminated in a timely
manner on this page, which provides primarily earnings
highlights, an IR calendar, an IR library (with access to annual
business reports, mid-term management plan materials,
annual reports ), General Meeting of Shareholders presentationmaterials, stock information, etc.

⇨ Reference site: Investor Relations
https://www.mpm.co.jp/eng/ir/index.html■ Head Office Gallery: Paper Design Square
We have built a gallery at the head office displaying ourprincipal products to engender a stronger affinity with Mitsubishi
Paper Mills Group products in addition to regularly held planned
exhibitions.
Location: Ryogoku City Core, 2-10-14, Ryogoku, Sumida-ku,
Tokyo, Japan
Mitsubishi Paper Mills Head Office, 11F, next to general
reception
Hours: 9:00-17:00 (closed on Saturdays and Sundays, public
holidays, and designated holidays)*We provide alcohol-based sanitizer and masks and regularly
disinfect tables, etc. at the gallery as measures against
COVID-19.

30

Corporate GovernanceCompliance

Risk Management

To ensure our actions remain in accordance with the Code of
Conduct of the Mitsubishi Paper Mills Group, the Group haslaid out rules to be followed in the Mitsubishi Paper Mills Group
Compliance Conduct Standards, and believes legal complianceis the prerequisite for all corporate activities. We have alsoestablished a Compliance Committee supervised by the Legal
Department under the CSR Committee to ensure Group-wideknowledge of the Code of Conduct and the Conduct Standards
and enforce legal compliance through a variety of awarenessprograms.

To maintain and improve corporate value, it is important to properly manage a range of risks that arise in the course ofbusiness activities. In our Group, the Risk Management Committee, which is supervised by the General Affairs &Personnel Department oversees Group-wide risk management efforts based on the CSR promotion structure. Divisions
at company headquarters, committees, and business sites are working on a variety of measures to strengthen risk
management, including the establishment of various rules and manuals for responding to relevant risks, development ofprevention systems and drills, and formulation of recurrence prevention measures when problems occur.

Risk assessment

Communication and Discussion
CSR Committee■ Compliance Training
Our fiscal 2020 compliance training was held at the end of August 2019 for all line managers in the Group.
The line managers then implemented this with their teams over the following six months. This year, the training
took up the theme of workplace harassment given the June 2020 amendment to the Labor Policy
Comprehensive Promotion Act. A total of 3,119 employees participated in the training, and the aggregatedresults and all of the comments are being shared among all executives and employees through the ComplianceNews newsletter.

■ Legal Affairs Training△

We held the following legal affairs training session for executives, line managers, and related staff to promotea better understanding of laws that apply to the participants’ work and ensure compliance.
Overview and Main Points of Revisions to the Civil Code (Law of Obligations)
Date: October 30, 2019
Instructor: Kosuke Tsunashima, attorney at law
Anderson Mōri & Tomotsune
Participants: 267■ Compliance News
Eleven issues of Compliance News were released in fiscal 2020, introducing easy-to-understand discussions
about topics such as the compliance training review, corporate structures, industrial property rights, andcopyright.

Corporate Ethics Hotline internal whistleblowing system
Mitsubishi Paper Mills has an internal whistleblowing system that is available to all employees working in the Mitsubishi
Paper Mills Group in Japan. Under the system, care is taken to ensure informants do not receive unfair treatment, suchas having points of contact both inside and outside the company. Whistleblowing cases are also reviewed at regularmeetings of the Compliance Committee.

31

Declining domestic demand andFalling market prices
Rising cost of raw materials
Capital investment

Exchange rate volatility▼

The Mitsubishi Paper Mills Group considers continued awareness programs to be essential for promoting an
understanding of the importance of compliance and for fostering a corporate culture that emphasizes good compliance.
We conduct discussion-based compliance training for all employees, which aims to raise compliance awareness in theworkplace; provide legal affairs education taught by instructors that include lawyers from a variety of specializations for
improving employees' concern for legal issues; and issue our Compliance News newsletters on a regular basis.

Annual securities reports▼

Activities to Promote Better Awareness of Compliance

Risk of business environment volatility
Each company and Each department
Risk of legal violation
Compliance Committee
Risks to safety and healthGroup-wide Safety and HealthCommittee
Risks of product safety
Product Liability (PL) Committee
Risks to the environment
Environmental Preservation
Committee

Disclosure of risk information▼

Monitoring and Reviews
Risk Management Committee

Risk response

Rising interest rates▼

Code of Conduct of the Mitsubishi Paper Mills Group pocket card

Risk analysis▼

Risk identification

COVID-19 pandemic risk

Disasters
Regulations and Litigation
Other contingencies

Improving Our Risk Map

The Risk Management Committee is currently monitoring more than 200 risks Group-wide. We analyze the impact ofthese risks and the frequency with which they occur to build our risk map, and we regularly identify and analyze risks to
improve the effectiveness of our risk management.

Building a Crisis Management System

The Mitsubishi Paper Mills Group formulated the Mitsubishi Paper Mills Group's Crisis Management Manual to respondquickly in fulfilling its corporate social responsibility and maintaining social credibility in the event of an accident ordisaster that brings serious harm to people or equipment, or impacts surrounding
communities. In addition, to construct an effective risk management system, weregularly conduct various drills and operation tests at every business site and ona scale that involves the entire company, and work to identify and resolve
issues. We have run drills using the safety check system installed at theCompany’s headquarters in 2018 at business sites and Group companies inJapan to build a Group-wide crisis management system. We have also beenworking to prevent the spread of COVID-19 by combining working from homeand staggered working hours.
Autumn fire prevention campaign: simultaneous

Enhancing Information Management

water spraying drill (Takasago Mill)The Group practices efficient and integrated use of information and works to manage it properly. Along withestablishing Information Management Regulations that set forth our measures for managing and protecting information
handled in our business activities, we have codified a guideline for upholding these regulations in the form of theInformation Handling Guidelines.

Creation of a Business Continuity Plan (BCP)The Mitsubishi Paper Mills Group's experience with the Hanshin-Awaji Earthquake and Great East Japan Earthquake
has impressed on it the need for strengthening emergency preparedness. We are building an effective business
continuity plan informed by our experience in recovering from profound devastation.

32

Fair Operating Practices
Ensuring Fair Trade■ FSC Certification

We believe that the kind of trust, technologies, and contributions that have true value and that are essential toachieving the Group's corporate philosophy of Live up to the trust of our customers in the world market, Always be on theleading edge of technology, and Contribute to preserving the global environment and creating a recycling society, arise
from engaging in fair competition and achieving mutual growth. In the Mitsubishi Paper Mills Group Compliance Conduct
Standards, we pledge to comply with related laws, and we have also established an Antimonopoly Act Compliance
Manual to promote a better understanding of, and compliance with, the Antimonopoly Act and related laws (Act against
Delay in Payment of Subcontract Proceeds, Etc. to Subcontractors, and the Act Against Unjustifiable Premiums andMisleading Representations) by all executives and employees. Guided by these principles, our business practices
emphasize free and fair competition, regardless of circumstances.

Preventing Corruption

The Mitsubishi Paper Mills' Compliance Conduct Standards prohibit business activities that may result in social decay:
entertaining or giving gifts to civil servants (including quasi-civil servants) and giving benefits to officials in foreign
governments and public organizations. As part of efforts to build fair and transparent relationships, we have alsoestablished internal rules governing all manner of contributions and donations to organizations, and we strongly prohibit
bribery, the provision of improper benefits, illegal political donations, and other acts that could constitute political oradministrative collusion .

Disavowal of Anti-Social Elements

The Mitsubishi Paper Mills Group maintains a resolute stance against anti-social elements that threaten social orderand safety. This stance is set forth in the Mitsubishi Paper Mills Group Compliance Conduct Standards, and executives,
employees, and other company-related people are made fully aware of the content of the standards. We have also
implemented an anti-social elements search system that uses an external database and that enables us to mitigate therisk of inadvertently entering into relationships with anti-social elements.

Promoting Social Responsibility in the Value Chain

We aim to forge business relationships of mutual prosperity based on the belief that all suppliers involved in procuring
raw material and similar operations are partners so we can provide competitive products. In order to ensure that we as
the Mitsubishi Paper Mills Group conduct ourselves responsibly and ethically, and that suppliers practice fair trade with asimilar business posture, we have established a Basic Policy for Procurement and a Policy on Forest Resource
Preservation and Nurturing, and on Wood Procurement and Products, which lay out our basic approach to raw material
procurement. We work to promote social responsibility by periodically having our suppliers, too, complete questionnaires.
⇨ Reference site: Procurement of Raw Materials
https://www.mpm.co.jp/eng/env/timber.html

FSC certification was established in 1993 with the goal of auditing and certifying
responsible forest management according to sound economic, environmental, and social
principles. It aims to ensure that the world's forests are kept healthy by labeling wood andwood products sourced from these forests. There are two types of FSC certification:
forest management (FM) certification and chain of custody (CoC) (processing anddistribution process management) certification. In August 2001, the Mitsubishi Paper
Mills Group became the first paper mill in Japan to acquire CoC certification.
The Vancouver Declaration for the UN SDGs and FSC Certification was announced at
the Forest Stewardship Council General Assembly of October 2017, which was held todrive greater support for the SDGs and FSC. Mitsubishi Paper Mills stands in solidarity
with the declaration, and signed it along with 57 other companies in Japan and othercountries.
⇨ Reference site: FSC-Certified Paper
https://www.mpm.co.jp/eng/env/fsc.html

Method for Verifying Legal Compliance and Sound Management
1. Evidence of use of the forestry certification and CoC certification schemes (FSC-certified wood, FSC controlledwood)
2. Evidence of methods of individual companies or organizations (controlled wood)
In 2. above, we verify that wood is controlled in accordance with Requirements for Sourcing Controlled Wood
(FSC-STD-40-005). The verification method in conformance with these requirements is described below.

◎ Collection of information concerning wood chips and pulp
・ Confirmation of the place of origin, wood type, forest management methods, etc. from traceability reports
・ Confirmation of documentation certifying the place of origin (e.g. documents related to transport and sales)
・ Regularly auditing suppliers and verifying document reliability◎ Assessing risk (taking measures to mitigate risk when necessary)・ Assessing and verifying that place of origin of wood is a low risk with respect to A) through E) below.
A) Illegally harvested woodB) Wood harvested in violation of traditional and human rights
C) Wood from forests in which high conservation values are threatened by management activities
D) Wood from forests being converted to plantations and non-forest use
E) Wood from forests in which genetically modified trees are planted
・ Receiving audits of risk assessment results by an FSC certifying body

■ Raw Wood Procurement in Fiscal 2020

We have verified that all wood chips and wood pulp procured in fiscal 2020 came from forests that were legally
and appropriately managed.

Responsible Raw Material Procurement

FSC-certified
wood

The Mitsubishi Paper Mills Group conducts business with wood as a principal raw material. In the interest ofsustainable wood procurement, we were one of the first organizations to acquire FSC® certification ※, and procure timberfrom forests being properly managed in accordance with FSC certification.

33

Countries of raw wood chip production

Types of raw wood
FSC Controlled wood

0

20

Japan

61%

39%

40

60

80

35%

100 %

0

20

Australia Vietnam Other
6%
12%
23%

Chile
24%

40

60

80

100 %

※FSC: Forest Stewardship Council®

FSC® C021528

34

Relationship with the Environment
The Mitsubishi Paper Mills Group intends to make an active contribution to the protection of the global environment
and the creation of a recycling society. To this end, the Group will not only strive to prevent global warming and preserve
biological diversity, but also to earn the trust of all its stakeholders through the use of sustainable forest resources andthrough efforts to develop environmentally friendly production technologies and products. This commitment is set forth in
our Environmental Charter, formulated in April 1993 to guide our distinctive business activities, which leverage theGroup's lines of business.

Environmental Charter

1．
［Fundamental Principles］
The Mitsubishi Paper Mills Group intends to make an active contribution to the protection of the global
environment and the creation of a sustainable society. To this end, the Group will not only strive to help prevent
global warming and preserve biodiversity, but also to earn the trust of all its stakeholders through the use ofsustainable forest resources.
2．
［Basic Policies］① Implement measures to counter global warming⑤ Develop and fully utilize environmental② Protect and nurture forest resources, with appropriate
management systems
care given to the preservation of biodiversity⑥ Promote environmental communication③ Promote the sustainable use of resources⑦ Draw up appropriate contingency plans④ Develop environmentally friendly production
technologies and products

Environmental Management System
To realize the fundamental principles of the Environmental Charter, the Mitsubishi Paper Mills Group has acquired ISO
14001 certification for its major production facilities and is working to continuously improve the Group's environmental
performance. We have a company-wide system for ensuring the effectiveness of these efforts. The Technology &Environmental Department is in charge of these initiatives and conducts environmental audits once a year for all major
business sites as a way to check these sites' environmental performance.
Research & Development
Laboratory

President

Director of Technology &the Environment

Statutory Manager

MillMill Environmental
Conservation Committee

Special Subcommittee（s）Environmental Management
Division

Environmental Conservation Committee
Administrative office: Technology &Environmental Department

Environmental Manager

Affiliated Company

Chemical Substance Management

35

With the aim of protecting the environment and ensuring product safety with respect to chemical substances
throughout our entire supply chain, the Mitsubishi Paper Mills Group has formulated its own Chemical SubstanceManagement Guidelines and Rules for Administration of the Chemical Substance Management Guidelines inconformance with various regulations. The guidelines take into account the impact on the environment and humanhealth, as well as social trends and other considerations. All our mills, offices, and affiliated production companies control
and handle chemical substances properly and efficiently according to these guidelines, with central oversight by theTechnology & Environmental Department at the head office. We also formulated the Mitsubishi Paper Mills Group Green
Procurement Standards and Procedures based on these guidelines, promote green procurement and make efforts tomitigate environmental risks posed by chemical substances.

Preventing Global Warming

Manufacturing Segment Initiatives

The Mitsubishi Paper Mills Group has the target of bringing CO2 emissions down to 920 thousand tons or less by fiscal
2021 and is working on reducing its fossil fuel-based energy and overall energy consumption. In fiscal 2020, we reduced
CO2 emissions to 856 thousand tons, achieving our target ahead of schedule. We will work on further reductions, having
set the next target of bringing CO2 emissions down to 770 thousand tons or less by fiscal 2026.
Energy consumption (TJ)
30,52530,00025,14220,000Emissions(1,000 tons)
1,200

1,100

Emission intensity(tons/product tons)
1.10

1,164
●

1,000

10,0000

CO2 emissions and emission intensity

1.049

1.039
●

1.041

1.038

959

●

●

1.059
1.038

983

957

■ Fossil fuels■ Renewable energy

2020
(FY)

■ Purchased electricity■ Energy from waste

800

●
932

856

2006

2016

2017

Emissions

1.05

1.00

900

2006

●

●

2018
●

2019

2020
(FY)

0.95

0.90

Emission intensity(Scope of statistics: Mitsubishi Paper Mills Limited, Kitakami HiTec Paper Corporation, Toho Tokushu Pulp Co., Ltd., and KJ SPECIALTY PAPER Co., Ltd.)

Logistics Segment Initiatives■ Eco Rail Mark Certification

Mitsubishi Paper Mills acquired Eco Rail Mark certification in October 2010,
becoming the first to do so in the paper industry. Since then, we have contributed to
global environmental preservation through the dissemination of the Eco Rail Mark.
Under the Eco Rail Mark system, companies or products are certified and allowed touse the Eco Rail Mark if they use a certain volume of eco-friendly rail freight transport.
Usage of the mark offers consumers a standard for making decisions.

■ Green Management Certification

Namitsu Co., Ltd., a distribution company affiliated with the Mitsubishi Paper Mills Group, has GreenManagement Certification at its main facilities and is reducing the level of CO2 emitted by its trucks duringtransport. Ongoing efforts that include the use of start-stop systems improve fuel efficiency and reduce fuelconsumption. Aimed at reducing the environmental impact of the transport industry, Green Management
Certification is given to business entities that have been audited and certified by the Foundation for Promoting
Personal Mobility and Ecological Transportation for having reduced the environmental impact of their operations
by a certain degree in accordance with the Green Management Promotion Manual.

Initiatives for the Office and the HomeWe are taking a number of measures to reduce energy usage in office buildings,
including meticulous efforts to turn off lights. In addition, the Tsukuba R&D Laboratory
tracks the building’ s power usage through a demand monitoring device and equalizes
power load through peak shifting. The Mitsubishi Paper Mills Group also promotes
participation in the household environmental accounting booklet program, raisingawareness for environmental preservation by having employees monitor their household
CO2 emissions.

36

Relationship with the Environment

Report of receiptof thinned wood
"Forest thinningsupport paper"production report

Forest thinningsupport paper
Forest thinningpromotion
expensePrinting
companies

Paper distribution
companies

Forest thinningsupport paper

Forest thinningpromotion
expenseForest thinningpromotion
expenseMorino Chonai-kai
executive office（Office Chonai-kai,
environmental NPO）

Certificate of contribution to forest thinningand usage of wood from thinning

Morino Chonai-kai

Forest thinningsupport paper
Forest thinningpromotion
expenseForest thinning supporter companies, etc.

Forest thinning
reportWood from thinning

Paper producing companies

In conformance with FSC® certification scheme standards,
the Mitsubishi Paper Mills Group makes careful use of woodfeedstock produced under proper forest management, and also
works to popularize the forest certification system. At the sametime, we are engaged in a number of efforts to help forest
preservation and support more prosperous local forestry andlogging industries. This includes promoting forest thinning
through Morino Chonai-kai, a forest neighborhood association,
which is a collaborative project done in conjunction with Office
Chonai-kai, an environmental NPO, as well as promoting thesustainable use of second growth hardwood produced in Iwate
Prefecture.

Forestry
Associations

Forest Preservation Activities

Forest thinning promotion expense

Preserving Biodiversity

Effective Use of Materials
The Mitsubishi Paper Mills Group's main mill, the Hachinohe Mill, gets energy from the black liquor produced in thepulp production process as well as from the waste (paper sludge) generated in the use of wastepaper and thepapermaking process. The black liquor is burned in recovery boilers, where heat energy and chemicals used to
manufacture pulp are recovered. The paper sludge, along with cut up tires, waste wood, and other waste materials, areused as fuel for a waste boiler. The incinerator bottom ash produced by the waste boiler and the ash produced by a coalboiler is used to make a recycled construction material named Reglobe and is also recycled into cement material and raw
steelmaking material. These efforts to effectively use waste reduce final disposal volume while at the same time reducing
fossil fuel usage.
Carbon fixation

Ecosystem Academy
As one member of the industry that benefits from the “gifts of the forest”, the Ecosystem Academy provides a place forexperiential forest environment education to contribute to developing a sustainable society that will connect people andcommunity through experiential environmental education, forest surveys and research, and information dissemination. In
March 2020, the Ecosystem Academy obtained Place for Nature-Based Experiences certification from Fukushima
Prefecture as a part of the Education for Sustainable Development (ESD) initiative by the Ministry of the Environment forachieving the SDGs.

Properly managed forests

Customers

Waste paper

Local companies, etc.

Paper andpulp products

Waste tires andmaterials■ Experiential Environmental Education

Pulp millprocess
Chips andwaste paper⇨ PulpWood chips

Papermaking
process
Pulp ⇨ Paper

Coal boilers

Recovery boilers

Chemical recovery
Place for Nature-Based Experiences
certification from Fukushima Prefecture

Biomass fuels■ Waste Generated and Volume Effectively Reused（1,000 tons）■ Information Dissemination

37

Paper sludge
Waste boilers■ Forest Surveys and Research

We hold regular environmental seminars led by instructors fromdiverse fields including people involved in the forestry, paper
manufacturing, finance industries, and environmental preservation,and people teaching at universities. At the 2019 seminar, the 10thsuch seminar to date, Kiyoka Miki (General Manager, Environmental
Education Promotion Office, Ministry of the Environment) and Koji
Ohata (Manager, Sanctuary management support, Wild Bird Societyof Japan) were invited to speak on the theme of Experiential
Environmental Education Contributing to the SDGs and to discuss
the role of experiential environmental education.

CO2

EnergyThe program combines lectures, observations, measurements, tree planting andgrowing using company-owned forests, and papermaking and paper crafts as ameans to experience the art of manufacturing. Consideration is given to forest
preservation, prevention of global warming, and biodiversity with circulation as the
keyword. In fiscal 2020, a total of 863 participants took part in 27 sessions ranging
from environmental education to tree planting events in Kyoto, Tokyo, Fukushima,
Iwate, and Aomori.

We continuously engage in surveys of forest biodiversity, including
surveys on tree growth, surveys on animals using trail cameras, andbird surveys in cooperation with the Wild Bird Society of Japan’ s
Shirakawa Chapter in company-owned forests.

Ashrecycling

120
100
80
60
40

Independent study lecture(Mizumoto Park, Tokyo, April 2019)

FSC® C021528

20
0

2016

2017

2018

2019

2020
(FY)

■ Waste generated ■ Volume effectively reused ■ Intermediate processing volume ■ Final disposal volume（Scope of statistics: Hachinohe Mill, Kyoto Mill, Takasago Mill, Shirakawa Site, Kitakami HiTec Paper Corporation, KJ SPECIALTY PAPER Co., Ltd.）38

Relationship with the Environment
Material Balance

Mitsubishi Paper Mills Group(Domestic)

Input
Main raw materials(1,000 t)
721
378
30
26
44

Imported wood chips
Domestic wood chips
Purchased pulp
Waste paper
Inorganic pigments

1 business office
Tsukuba R&D Laboratory

Service waterIndustrial water

Wastewater
COD
SS

KJ SPECIALTY PAPER
Co., Ltd.

126

117
0
2,755

(Million tons)(t)(t)

Waste generated
Volume effectively used
Final disposal amount

Product sales amountCO2 emissions (1,000 t)(1,000 t)
Wastewater

42
1,937

127
7,045
3,719

(1,000 t)

93
74
7

Paper
(1,000 t)
Photosensitive materials (Million m²)(1,000 t)
Pulp

Reference: 2 mills in Germany
Purchased pulp
(1,000 t)(1,000 t)
Waste paper
Service water usage (1,000 t)

856
835
187
376

(1,000 t)(1,000 Nm³)
(1,000 Nm³)
(t)

Waste

Toho Tokushu Pulp
Co., Ltd.

(Million tons)

Atmospheric release

Released into water systems

Kitakami HiTec Paper
Corporation(Crude oil equivalent, 1,000 kl)
Fossil fuels
237
Purchased electricity
48
Biomass
322
Refuse-derived fuel43

Environmental Impact Data

OutputCO2 emissions
NOx emissions
SOx emissions
Soot and dust

3 mills

EnergyEnvironmental Indicators

683
58
68

Scope of statistics: Hachinohe Mill, Kyoto Mill, Takasago Mill, Shirakawa Site, Tsukuba R&D Laboratory, Kitakami HiTec Paper Corporation,
Toho Tokushu Pulp Co., Ltd., KJ SPECIALTY PAPER Co., Ltd.

Natural resources
Fossil fuel-based energy consumption
Fossil fuel energy intensity

FY 2019

FY 2020

TJ

15,131

12,506

11,886

11,036

GJ/product-tons

13.6

13.2

13.2

13.6

Million t

125

127

126

126

Million t

-

127

127

127

CO2 emissions*1

1,000 t

1,164

983

932

856

1,000 Nm³

1,076

857

826

835

1,000 Nm³

247

264

260

187

t

-

375

392

376

t

Atmosphere
NOx
SOx

Soot and dust
Water quality
COD

Waste

Figures from Mitsubishi HiTec Paper Europe GmbH (two mills in Germany: the Bielefeld Mill and the Flensburg Mill) are also provided as a reference
but are not included in the total for the Mitsubishi Paper Mills Group as environmental regulations differ in Germany.

FY 2018

Wastewater

Service water usage

SS

Scope of statistics: Hachinohe Mill, Kyoto Mill, Takasago Mill, Shirakawa Site, Tsukuba R&D Laboratory, Kitakami HiTec Paper Corporation,
Toho Tokushu Pulp Co., Ltd., KJ SPECIALTY PAPER Co., Ltd.

FY 2006

Waste generated
Final disposal amountFinal disposal rate*

7,717

7,702

7,504

7,045

t

3,417

3,660

3,621

3,719

1,000 t1,000 t

120

114

105

93

15

9

7

7

1.40%

0.95%

0.75%

0.80%

Percentage vs.
production volume

2

Target（FY）

12.1 (FY2021)

920 (FY2021)

0.30% (FY2021)*1 For CO2 emissions from purchased power, we use the CO2 emissions coefficient provided by the Federation of Electric Power Companies.
*2 Final disposal rate = (final disposal volume / production volume) x 100

Amount of PRTR-listed Substances Emitted and Transferred in FY 2020

Scope of statistics: Hachinohe Mill, Kyoto Mill, Takasago Mill, Shirakawa Site, Kitakami HiTec Paper Corporation, KJ SPECIALTY PAPER Co., Ltd.
Unit: kg/year (mg-TEQ/year is used for dioxins only)

No. PRTR Class 1 Designated Chemical Substances

1
2
3
4
5
6
7
8
9
10
11
12
13

XyleneSilver and its water-soluble compounds
Chloroform

Cyclohexylamine

2,2-Dibromo-2-cyanoacetamide
Dioxins

Triethylamine
TolueneHydrazine

Hydroquinone

Boron and its compounds
Formaldehyde

Methylnaphthalene

Cabinet order No.

Emissions
Atmosphere

Water

Amount transferred
Sewerage
Off-site

80

620

0

0

950

82

0

0

0

0

127

20,100

4,700

0

0

154

0

0

0

0

210

2

782

0

38

243

0.00

29.14

0.00

0.19

277

1,300

0

0

0

300

12,700

0

0

5,700

333

0

0

0

0

336

0

0

64

0

405

0

0

150

0

411

116

1

32

722

438

185

0

0

0

Environmental Accounting in FY 2020

Scope of statistics: Head Office, Hachinohe Mill, Kyoto Mill, Takasago Mill, Shirakawa Site, Tsukuba R&D Laboratory,
Kitakami HiTec Paper Corporation, KJ SPECIALTY PAPER Co., Ltd.
Statistical method: Conforms with the Environmental Accounting Guidelines 2005 issued by the Ministry of the Environment

Environmental Conservation Costs
Classification(1) Costs within business areas

Scope of statistics: Hachinohe Mill, Kyoto Mill, Takasago Mill, Shirakawa Site, Tsukuba R&D Laboratory, Kitakami HiTec Paper Corporation, Toho
Tokushu Pulp Co., Ltd., KJ SPECIALTY PAPER Co., Ltd.

Efforts are underway to detoxify hardware (stabilizers) containing high concentrations of PCBs and we expect to be able todetoxify all stabilizers by the legally mandated deadline. We also plan to gradually detoxify hardware containing low
concentrations of PCBs.

39

Investments

Expenditures

629

2,113

104

1,226

2. Environmental conservation costs

Includes air pollution, water pollution, foul odor, noise, and vibration
measures
Includes domestic afforestation, energy conservation measures, etc.

472

32

3. Resource recycling costs

Includes waste measures and waste paper and other product recycling

53

855

(2) Upstream/downstream costs

Includes container and packaging recovery and recycling
Includes environmental education, environmental management
systems, and certification acquisition
Includes the development of green products
Includes greening, environmental beautification, and environmental data
disclosure
Fees for pollution-related health damage

285

285

4

64

0

0

29

29

0

52

947

2,543

1. Pollution control costs(3) Management activity costs(4) R&D costs(5) Social activity costs(6) Environmental damage costs
Total

Economic Benefit of Environmental Conservation Measures

PCBs

Unit: Million yen

Principal Initiatives

Classification

Earnings
Cost reduction
Total

Benefit

Unit: Million yen

AmountBenefit of reusing recovered pallets

451

Profit from sales of materials effectively recycled

28

Cost reduction from decreased energy usage

19

Cost reduction from improved material yield

190
688

40

Relationship with Employees
Based on our Principles and Guidelines Concerning Human Rights and Labor Practices, the Mitsubishi Paper Mills
Group makes a number of efforts to continue to create comfortable and fulfilling work environments where each andevery employee can fully display his/her abilities.

⇨ 参考 URL：『従業員とともに』https://www.mpm.co.jp/env/community/employee.html

Occupational Safety and Health Initiatives

The Mitsubishi Paper Mills Group views occupational safety and health activities as activities that should be given
priority in all initiatives. From the CSR point of view, and based on the Group-wide Safety and Health Management
Guideline, which incorporates the fundamental principles of safety and health, which are mentioned in the Principles andGuidelines Concerning Human Rights and Labor Practices, we carry out a number of activities as a unified corporategroup.

Fiscal 2020 Activities
We worked primarily on the two activities below as key initiatives
aimed at eliminating human error, which is one of the causes ofoccupational accidents.
① We enhanced safety and health education and provided
training by rank and education on the rules and principles forequipment, among other areas.
② In initiatives to improve communication, we usedcommunication manuals, had discussions to confirm work
details, and had reciprocal inspection patrols of otherworkplaces.

1.5

●

◆

●

◆

◆

2,000

●
◆

◆

2013
●

2014

Mitsubishi Paper Mills

◆

●
◆

◆

2015
●

2016

2017

2018

2019

Japan Paper Association (industry statistics)※ Scope of statistics: Takasago Mill, Kyoto Mill, Shirakawa Site, MPM Operation Co., Ltd., Kitakami HiTec Paper Corporation,
KJ SPECIALTY PAPER Co., Ltd., and each site’s Collaboration Committee

Promoting Good Mental andPhysical Health

■

■

◆

◆

●

●

●
◆

1,800

2020
（FY）

●

2016

2017

Mitsubishi Paper Mills

2018
◆

◆

2016

2017

●

◆

◆

◆

2018

2019

2020
（FY）

60

●

2019

All Industries

◆

●
●

■

◆
●

●

80

■

◆

●

2020
（FY）
■

40

Manufacturing※ All Industries’ and manufacturers’ data are from the Ministry of Health,Labour and Welfare's Monthly Labour Survey(companies with 500 employees or more; general workers only)●

Mitsubishi Paper Mills◆

Society※ Society: From the Ministry of Health, Labour and Welfare's
General Survey on Working Conditions.

Work-life Balance Initiatives
Mitsubishi Paper Mills has a number of programs to help employees balance work, parenting, and caregiving. For
example, in light of the "first-grade wall" problem, which refers to the difficulty of putting children in childcare untilnighttime once they enter elementary school, employees can take advantage of shortened working hours to provide
childcare until their children reach the end of first grade.

We are promoting the Employees Assistance Program.
We aim to raise employees’ health awareness through collaboration
on health. As health awareness has risen, the number of employees
using the external EAP initiative has also been increasing year afteryear. In 2019, we expanded mental health counselling services toenable ongoing counselling. Going forward, we will continue
promoting the external EAP to maintain and promote health.

Furthering Diversity
Personal card for health consultation service

41

■

●

●

2012

100

◆

●

Paid leave acquisition rate（％）

Rank-based safety education (November 2019, Takasago Mill)

●

2011

Total hours worked annually

1,900

0.5
0.0

We introduced a system of staggered working hours as a flexible way of working to match the lifestyles of eachindividual employee. We commenced implementation of the system gradually, starting with our headquarters. The
staggered working hours system aims to improve work-life balance and alleviate stress from commuting congestion, andis thereby expected to also increase productivity. During the spread of COVID-19, we worked to prevent the spread of
infection by combining working from home with staggered working hours.

(Hours/FY)
2,100

●

◆

Introduction of a Staggered Work Hours System

Together with our labor union, we regularly hold meetings of a specialized committee to review human resource
programs and hold labor-management discussions on creating better programs. Meetings focus on issues such as
wages, retirement benefits, taking annual paid leave, hours worked, reemployment, and work-life balance.

●

1.0

We believe that pursuing a good work-life balance not only contributes to healthier, more prosperous lives for
employees but also makes the company more competitive. We are implementing a number of initiatives to create
comfortable work environments, with the desire to make the Group a vibrant and fulfilling place to work.

Regular Program Reviews Done in Conjunction with Our Labor Union

Lost time accident frequency rate

（Accident frequency rate）

Efforts to Create Comfortable Work Environments

As part of our women's empowerment initiatives, the Mitsubishi Paper Mills Group is working to get more women
working at production sites. To achieve this, we have prepared plans for improving the workplace environment, and weare gradually implementing them.

42

Relationship with Customers
To provide customers with products they can feel good about using, we have established our own Product Safety
Code, and are making efforts to maintain and improve product safety. Along with maintaining legal compliance andconducting fair marketing practices, we will continue to actively communicate with our customers and provide productsthat benefit society.

Product Safety CodeCommunication with Customers

In the Mitsubishi Paper Mills Group, the sales, R&D, production, and technology departments work as one to provide
products that satisfy customers' needs. Our technology and production personnel accompany sales staff and gather
feedback from customers as we, a corporate group that is consistently on the cutting edge of technology, make efforts tocreate products that benefit the world at large.

Mitsubishi Paper Mills believes that the role of a company in society is to provide satisfying services along withsafe and useful products to customers, and we have utilized our excellent technologies to provide safe products tosociety. From here on, too, we will steadily implement the following actions throughout the entire company tomaintain sound management and continue providing society with safe products and satisfying services that meetthe needs of the times.
(1) We will strengthen our quality control systems and product safety control systems, and will provide products
confirmed to be safe using state-of-the-art science and technology.
(2) We will work to stabilize the manufacturing process and always provide products of uniform quality.
(3) We will provide accurate and reliable information on the correct way to use products and the safety of products.

Quality Control System

To be able to quickly respond to customer
feedback and quality issues, the Group'sbusinesses are divided into sevensegments, and have built a quality control
system overseen by the president.
The key production facilities in eachbusiness segment have acquired ISO 9001
certification. In addition, quality control
administrators, who have responsibility for
and authority over quality in the businesssegment, share information with the relevantbusiness division general managers whileworking to maintain and improve the quality
control system. Furthermore, to guarantee
quality control system effectiveness, theTechnology & Environmental Department at
the head office regularly audits quality
control efforts for each business segment
and issues reports to the officer in charge.

Hachinohe Mill business segment
President

Quality control administrator: Hachinohe Mill Manager

Takasago Mill business segment
Director in Charge ofTechnology &the Environment
Paper Division
General Manager
Functional Materials Division
General Manager
Research and Development
Division General Manager

43

Comprehensive event for the printing media businesspage2020 (February 5 – 7, 2020, Tokyo)

Exhibition for Electronics R&D, Manufacturing and Packaging Technology
34th NEPCON JAPAN (January 2020, Tokyo)

18th Shanghai International Nonwovens Exhibition(December 2019, Shanghai)
We exhibited jointly with Kunshan Oji Filter Co., Ltd.

Quality control administrator: Takasago Mill Manager

Kyoto Mill business segment
Quality control administrator: Kyoto Mill Manager

KHP* business segment
Quality control administrator: KHP* president

Pressboard business segment

Quality control administrator: Commercial Printing &Business Communication Paper Sales
Department Manager

Speciality Materials Business segment
Quality control administrator: Functional Materials
Division Deputy General Manager

KJ SPECIALTY PAPER segment
Quality control administrator: KJ SPECIALTY
PAPER president*KHP: Kitakami Hitec Paper Corp.
(as of August 31, 2020)

Product Safety Control System
With the goal of actively promoting
specific product safety initiatives, we haveestablished a Product Liability (PL)Subcommittee and a Product Safety
Judgment Panel under the Product Liability(PL) Committee, whose membership is
composed of individuals appointed fromevery head office division, every mill, andaffiliated companies. This committee
supports every division in their productsafety management activities.

Specialized and comprehensive sign & display expo
61st Sign & Display Show (August 2019, Tokyo)

Encouraging the Worry-Free Use of Our Products

Product Liability (PL)Committee
Product Safety
Judgment Panel

Product safety activities◆ Legal compliance team◆ Outside party negotiationteam◆ Education team
◆ Consumer support teamProduct Liability (PL)Subcommittee◆ Product safety assurance
team

The products the Mitsubishi Paper Mills Group provides are made from raw materials proven to be safe. Along withswiftly obtaining toxicological data and information about new regulations, all departments involved — including affiliatedcompanies — share information with each other and conduct thorough safety inspections of the raw materials used. With
respect to chemical substance control, we have established Chemical Substance Management Guidelines and Green
Procurement Guidelines and strictly control everything from the raw materials we use to our products' constituent
substances. Also, not only do we ensure compliance with laws and regulations, we also meet voluntary standards set by
the industry according to product application and satisfy the demands of individual customers. We will contribute to thebetterment of society by continuing to provide eco-friendly, safe products that customers can feel safe and comfortable
about using.

44Relationship with Communities
The Mitsubishi Paper Mills Group aims to grow together with communities and has formulated its Social Contribution Direction of Activities to proactively interact with communities through its business activities. Through activities such as
those conducted by the Ecosystem Academy (see page 37), which uses forests owned by Mitsubishi Paper Mills, weundertake a number of social contribution activities that take advantage of the characteristics of each of our businesssites.

Social Contribution - Direction of Activities● Environmental protection: We will contribute to the creation of a recycling society to maintain our precious

global environment.
⇨ Our efforts to conserve the global environment are activities making full use of our business and include
supporting forest thinning, etc. together with NPOs and supporting FSC®-certified forests.
● Living alongside local communities: We are strengthening our social contributions rooted in local communities.
⇨ Mills and offices play key roles by actively engaging in local community activities and contributing to thedevelopment of those communities.
Supporting
volunteer activities: We support the volunteer activities of our employees.
●

Coexistence with the Community

In addition to actively participating in community events, our sites welcome and deepen our interaction with community
members through efforts that include allowing our facilities to be used free-of-charge for events.

■ Sponsorship of the Takasago Lantern Festival
Takasago Lantern Festival 2019 was held in September in
Hyogo Prefecture’ s Takasago, home to the Takasago Mill.
The festival featured such things as illuminated historicalbuildings, candle-lined alleys, jazz galleries, and refreshment
stands, and attracted many visitors.
The Uomachi Club, a Western-style house owned by themill, was also decorated with lights, and visitors were treated toa jazz performance.
The Uomachi Club, all lit up (Takasago Mill)■ Participation in the Nagaokakyo City
Environmental Fair

Communication with Community Members

As members of their communities, every business site in the Group proactively participates in local activities andfurthers communication with every community member in a variety of ways.

Dialogue with Community Members

In addition to providing plain language explanations of our business situation to community members, we regularly holddialogues with community members to learn their thoughts on and solicit suggestions concerning our business and learn
about community issues. We also work to stimulate local economies through our business activities.
Briefing on the State of Operations (April)■ Shirakawa Site

■ Hachinohe Mill

Contributing to Local Communities

Environmental Monitoring Meeting (November)■ Kitakami HiTec Paper Corporation Community Gathering (December)

Lecture and papermaking workshop at the Environmental Fair
(Kyoto Mill, November 2019)

Every year in November, Nagaokakyo City—home of the Kyoto
Mill—holds its Environmental Fair as a means to promote better
environmental awareness among residents.
To bring further excitement to the event, the Kyoto Mill conducts
papermaking workshops and gives talks on the lifecycle andbounties of the forest to elementary school students and theirparents and also provides information about environmental efforts
being made by Mitsubishi Paper Mills.

etc.

■ Sponsorship of the Coming-of-Age Day
Event in Fukushima Ward, Osaka

Students’ Work Experience

Mitsubishi Paper Mills regularly takes in local students looking to experience life in the workplace. Through lectures andactual work experience in various workplaces, the students use this program as a means to gain valuable experience
wholly different from their school life. We hope the program will help them in their lives.

NAMITSU Co., Ltd. sponsors a raffle every year as part of
the Coming-of-Age Day Memorial Gathering, held in
Fukushima Ward, Osaka, where the company has its head
office, to celebrate the beginning of adult life for everyone
turning 20. Through efforts such as these, we will continue
strengthening relations with community members and achieving
mutual growth.

Coming-of-Age Day Memorial Gathering in Fukushima Ward

■ Braille Calendars

Takasago Trial Week 2019Students’ work experience program for middle school students(Takasago Mill, November 2019)45

We began producing braille calendars in 1997, and the 2020
edition marked the 24th year of this effort.
Until the 2019 edition, it contained cooking recipes and has been
well appreciated by those it has been donated to, such as social
welfare organizations and braille libraries, as well as the visually
impaired who use the calendar. However, we renewed the themes
for this edition to allow the visually impaired and able-bodied people
to enjoy cooking and sports together.

Students’ work experience program for middle school students(Kyoto Mill, November 2019)

FSC® C021528

Braille Calendar (2020 edition)

46

Relationship with Communities
Making Use of our Business Activities■ Mitsubishi HiTec Paper Europe Receives BEM AwardIn April 2020, Mitsubishi HiTec Paper Europe, based inGermany, received the papermaking industry’s first Sicher
Mit System (Systematic Safety) certification from BG RCI, theGerman Social Accident Insurance institution, for its
outstanding occupational safety and health management
system.
In addition, the company’s Flensburg Mill received the BEM
Award (Labor-supporting Management) from the State ofSchleswig-Holstein at the end of 2019 in recognition of its
exemplary design of workplaces for people with disabilities andwas presented with a prize of 10,000 Euros. The company will
use the prize money for further improving occupational safety
and health management.

■ Providing Paper to Hachinohe Higashi HighSchool and Others for Calligraphy Performance

Presentation of BEM Award to employees

The Hachinohe Mill regularly provides Hachinohe Higashi HighSchool’s calligraphy club, as well as other schools involved, withthe jumbo-sized paper used at calligraphy performances. Famous
as a frequent participant in the Shodo Performance Koshien, anational calligraphy competition, Hachinohe Higashi High School
also gives outstanding performances at various events in the area.
We look forward to lending our support to future calligraphy
performances by Hachinohe Higashi High School as well as otherschools involved.

Performance piece by Hachinohe Higashi High School in
Hachinohe festival square■ Participation in Hachinohe Book Center Events■ Community Cleanup Activities

Every year, the Hachinohe Mill participates in various activities
at the Hachinohe Book Center, a bookstore run by the city
government, which is one of the core activities of “book city”
Hachinohe.
In 2019, the mill provided woodchips, the raw material for
papermaking, to an exhibition entitled “From Paper to Books”,
which delighted visiting children, and also helped collect millsound sources to be used as the sound during the exhibition.

Every one of our business sites regularly undertakes activities to beautify and clean up the surrounding areas andpromotes initiatives to develop comfortable urban environments together with local communities.
As examples of such activities, the Tsukuba R&D Laboratory participates in group cleanups with employees from themember companies of the Tsukuba North Industrial Park Liaison Council in April and October each year to make theenvironment in the complex even cleaner. In addition, the Oyama Mill of Toho Tokushu Pulp Co., Ltd. takes part inOyama City’ s Green and Light Adopt-a-Road Campaign and makes efforts every month to maintain and improve theenvironment around roads.
Support for “From Paper to Books Exhibition 2019”(Hachinohe Mill)■ Photo Printing Service

Industrial park liaison group cleanup (Tsukuba R&D Laboratory)

Green and Light Adopt-a-Road campaign(Oyama Mill of Toho Tokushu Pulp Co., Ltd.)We provide photo and printing services for the Chibikko Otama &Tadaoki Funso Corner (Dress up and photography corner forchildren), one of the events at the Nagaokakyo Garasha (Gracia)
Matsuri festival, which adds color to autumn in Nagaokakyo City,
the home of the Kyoto Mill. Last year, children were again shy
about putting on make-up and a glamorous kimono for the first time
while being shown to the red carpet and photographed. The
photographs are very popular as presents for the family.

Philanthropic Expenditures

Printing services at Nagaokakyo Garasha (Gracia) Matsuri festival(Kyoto Mill)

Mitsubishi Paper Mills is a member of the Keidanren 1% Club and is a company which continually contributes toimproving social sustainability. Whether it's in academics, research, or education, our aim is to be of benefit to society inmany fields.
（10,000 yen）
6,000

Philanthropic Expenditures

Breakdown of Philanthropic Expenditures
Environment
Culture and Arts

4,000

Regional activities andCultural preservation
2,000

Cleanup activities around a mill (KJ SPECIALTY PAPER Co., Ltd.)47

G20 Osaka Summit CleanUP Campaign (NAMITSU Co., Ltd.)0Social Welfare
2016

2017

2018

2019

2020
（FY）

International exchange, etc.
Academics,
Research,
Education48

Fiscal 2020 CSR Activities
In fiscal 2020, we established "enhancing activities to ensure safety and health" and "product development centered on
harmony with society" as our two top priority issues, and undertook activities aimed at improving corporate value. We also
promoted initiatives to reduce greenhouse gas emissions, took part in local environmental preservation activities, and worked to
expand environmentally conscious products, including FSC®-certified paper to contribute to the UN sustainable development
goals (SDGs) with our products.

ISO 26000 Core Subjects

1. Organizational governance

Key Issues
Action Plan
・Ensuring the effectiveness ・Ensure good governance based on the
Basic Policies on Corporate Governanceof corporate governance・Establishing a risk
management structure・Thoroughly familiarizing
employees with our
Corporate Code of
Conduct and theCompliance Conduct
Standards
・Ensuring strict legal
compliance2. Fair operating practices

Activity Results
・Implemented initiatives based on the Basic Policies on
Corporate Governance and held meetings of theNomination and Remuneration Committee
・Reviewed director and audit & supervisory board member
・Review governance functions
training conducted last fiscal year and had Board of
Directors do a self-evaluation of their effectiveness・Enhance structural preparations and our risk ・Conducted semiannual risk map reviews and updated risk
assessments and evaluations
map in the interest of Group management
・Conducted training on backing up information disclosure
・Discuss ways of improving simulation andduring emergencies
training
・Conducted training on safety check system notification andmade notifications at time of September 9 typhoon
・Rolled out compliance education on power harassment to・Improve employees' understanding of the
all employees (Participants: 3,119)
Corporate Code of Conduct, theCompliance Conduct Standards, andrelated laws and regulations through morerobust compliance education

・Screened contracts, handled legal consultations, andexchanged information with Legal Division at Oji Holdings
・Promote a better understanding of laws and ・Conducted legal affairs education on revised Civil Code(Participants: 267)
regulations applicable to our operations,and enforce compliance・Regularly published Compliance News newsletter to raiseawareness of compliance・Conducted onsite audit at the Kitakami Site to confirm
・Strengthen and improve systems throughoperation status of the Information Management
Group-wide implementation of Information
Regulations and Information Handling Guidelines
Management Regulations
・Disseminated information on the New Mid-Term
・Promoting communication ・Further improve the IR information weManagement Plan (analyst briefing materials), the Generalprovide on our website, etc.
with stakeholders
Meeting of Shareholders, the Corporate Report, the Annual
Report, earnings briefings, and the dividend of surplus
・Disseminated information on relocation of the Mitsubishi
・Disseminate information about newPaper Sales head office, start of MOH operations, sales
products, etc. (sharing information about
launch of rucre, commencement of barricote sales andaffiliated companies)
establishment of banners, launch of new SaiVis products,
and on trade exhibits
・Enhance and make use of the Head Office ・Held 6 planned exhibitions and exhibited products in atimely fashion in the permanent exhibit
gallery・Issued Corporate Report 2019 in August in an integrated
・Enhance our corporate reports
report format
・Step up efforts at continually promoting CSR ・Conducted awareness raising activities using corporate
・Expanding initiatives out
reports and better familiarized Group employees with CSR
activities
to affiliated Group
policycompanies
・Strengthen legal functions

ISO 26000 Core Subjects

Key Issues
・Enhancing activities toensure safety and health・Promoting various
measures to improve
human resource
performance

3. Human rights

Evaluation
○
○
○
○

○

ISO 26000 Core Subject

Key Issues
・Promoting activities toprevent global warming
・Promoting activities topreserve biodiversity

・Improving and enlarging
our environmentallyconscious product lineup
・Reducing environmental
risk and impact

5. Environment

Action Plan
・Promote CO2 emissions reductions in ourbusiness activities and employees' homes
・Support and get involved in renewableenergy projects
・Increase the percentage of FSC-certified
wood we procure・Participate in the Japan Business Initiative
For Biodiversity (JBIB)
・Promote environmentally conscious
products such as FSC-certified paper
・Develop and roll out new environmentallyconscious products
・Reduce industrial waste
・Improve environmental communication○

Activity Results
・Reduced emissions and increased efficiency by making
good use of subsidies to invest in energy-saving measures
・Commenced operations at Hachinohe Eco-Energy Power
Station and collected information on new business・Made active use of FSC-certified wood chips and met
targets
・Deepened biodiversity knowledge through participation in
related seminars
・Released Bleached Kraft Paper and Margari Light, which are
new FSC-certified paper products
・Registered four new environmentally conscious products

Evaluation

・Apr-Dec final disposal volume: 4,078 t, final landfill waste
percentage: 0.68%
・Held Environmental Monitoring Meetings (Hachinohe),participated in Takasago Environment Ten Company Liaison
Council (Takasago), participated in Gakunan Council for
Coordinated Groundwater Pumping (KJSP ※), and others

△

○
○
○
○
○
○

○

※KJ SPECIALTY PAPER Co., Ltd.

○

○
○

○

○
○
○

4. Labor practices

Action Plan
Activity Results
Evaluation
・Checked for discrepancies between actuality and SOPs
・Improve efforts to eliminate serious△that have the risk of fatal accidents and completed all
accidents
reviews and revisions
Review standard operating procedures(SOPs) that have the risk of fatal accidents
・Foster a safety culture for preventing human ・① Conducted education at each business site in line with○the plan and also implemented imaginative initiatives, such
errorsas issuing news and making equipment principles widely①Enrich safety and health education
known as education on rules and principles
・② Implemented initiatives that matched the circumstances② Stimulate communication
at each business site to stimulate communication
・Revise HR systems according to the state of ・Revised systems with awareness of recruitment, human○resource retention, and workstyle reform
current issue resolution and conduct
rank-based training
・Reviewed rank-based training
・Introduced four new training programs aimed at improving
・Consider new training programs for skill○
performance of human resources
improvement

ISO 26000 Core Subject

6. Consumer issues

ISO 26000 Core Subject

7. Community involvement and development

Key Issues
・Ensuring product safety

Action Plan
Activity Results
Evaluation
・Enhance chemical substance management ・Updated chemical substance database as needed and○shared the latest information
・Business sites promptly reported to local governments inaccordance with PRTR Law
・Convened the PL Subcommittee four times and shared・Enrich the activities of the Product Liability○
information on laws and regulations promptly(PL) Subcommittee
・No product complaints or PL issues
・Conducted follow-up internal audit and confirmed
・Promote thorough adherence to ISO 9001
・Ensuring product quality○
corrective action was taken
management and improve customer
satisfaction (reducing complaints, etc.);
continue to conduct quality audits
・In product areas with high potential, aim to ・Decided to import and sell paper-based recyclable food・Product development○
packaging manufactured at German subsidiary (MPE) anddevelop highly-useful products that reflect
centered on harmony withstarted marketing it
consumer demands and that target
society
end-users・Developed a range of paper for use in food packaging that isbetter suited to the domestic market, and began introducing it
to customers

Key Issues
・Promoting community
support activities
・Promoting culturalcontribution activities
・Promote Eco System
Academy activities

Top priority issues

Action Plan
Activity Results・Take part in local activities at each business ・Every business site fostered goodwill with local
communities through efforts that included participating insite and continue good relations with
events, providing products, and opening up facilities
communities
・Made donations to and sponsored various related groups
・Implement ongoing support focusing on
and their plans
Mitsubishi and related industry groups
・Ensure these activities become established ・Conducted instructor development and skill improvement
trainingand developed as ongoing collaborations
with society
・Held experiential environmental education sessions inFukushima, Tokyo, Kyoto, Aomori and Iwate
・Held 10th Environment Seminar (at HQ), etc.
(Evaluation)○: Target met

Evaluation○○○△: Target not met

FSC® C021528
49

50

Fiscal 2021 CSR Action Plan
For fiscal 2021, we have again chosen "enhancing activities to ensure safety and health" and "product development centeredon harmony with society" as our two top priority issues. Implementing our action plans will see us carry out the PDCA cycle toimprove the quality of our CSR activities, while at the same time faithfully incorporating feedback gained through dialogue withstakeholders as we undertake initiatives uniquely suited to the Mitsubishi Paper Mills Group.

ISO 26000 Core Subjects 1. Organizational governance 2. Fair operating practices
Key Issues

・Ensuring the effectiveness of corporate governance・Establishing a risk management structure・Thoroughly familiarizing employees with our
Corporate Code of Conduct and the Compliance
Conduct Standards
・Ensuring strict legal compliance

・Promoting communication with stakeholders

・Expanding initiatives out to affiliated Group
companies

Action Plan

・Ensure good governance based on the Basic Policies on Corporate
Governance・Review governance functions

・Enhance structural preparations and our risk map from the point ofview of Group management
・Discuss ways of improving simulation and training
・Improve employees' understanding of the Corporate Code of
Conduct, the Compliance Conduct Standards, and related laws andregulations through more robust compliance education
・Build effective legal functions
・Promote a better understanding of laws applicable to our operations,and enforce compliance(includes updated responses to changes in laws and regulations,such as the revision of the Civil Code)・Further improve the IR information we provide on our website, etc.
・Disseminate information about new products, etc. (sharing
information about affiliated companies)
・Enhance and make use of the Head Office gallery
・Enhance our corporate reports
・Step up efforts at continually promoting CSR activities

ISO 26000 Core Subjects 3. Human rights 4. Labor practices
Key Issues

・Enhancing activities to ensure safety and health・Promoting various measures to improve humanresource performanceISO 26000 Core Subject 5. Environment
Key Issues

・Promoting activities to prevent global warming

・Promoting activities to preserve biodiversity

・Improving and enlarging our environmentallyconscious product lineup
・Reducing environmental risk and impact

ISO 26000 Core Subject 6. Consumer issues
Key Issues

・Ensuring product safety

・Ensuring product quality

・Product development centered on harmony withsociety
Action Plan

・Improve the level of safety awareness of Mitsubishi Paper Mills
Group employees① Be thorough about predicting hazards② Step up activities in collaboration with partners, affiliates, andothers・Revise and consolidate HR systems based on workstyle reform
・Secure human resources by stepping up recruitment activities
and develop human resources by revising training programs

Action Plan

・Continue reducing CO2 emissions in our business activities andinvestigate becoming low-carbon or carbon-free in the future・Support and get involved in renewable energy projects
・Increase the percentage of FSCｰcertified wood we procure
・Conduct ecosystem studies in company-owned forests
・Take measures to address microplastic waste in the oceans
・Participate in the Japan Business Initiative For Biodiversity (JBIB)
・Promote environmentally conscious products such as
FSC-certified paper
・Develop and roll out new environmentally conscious products
・Reduce industrial waste
・Expand environmental evaluation activities
・Improve environmental communication

ISO 26000 Core Subject

Action Plan・Enhance chemical substance management
・Enrich the activities of the Product Liability (PL) Subcommittee
・Ensure effective ISO 9001 management and improving customer
satisfaction (reducing complaints, etc.); continue to conduct quality
audits① Step up monitoring of repeat complaints② Review efforts to prevent data falsification (manage contractors
and control published data such as labels and SDS)
product
areas with high potential, aim to develop highly-useful・In
products that reflect customer demands and that target end-users

7. Community involvement and development

Key Issues

・Promoting community support activities
・Promoting cultural contribution activities
・Promoting activities of the Ecosystem Academy

Action Plan

・Take part in local activities at each business site and continue good
relations with communities
・Implement ongoing support focusing on Mitsubishi and relatedindustry groups
・Ensure these activities become established and developed as
ongoing collaborations with society

Top priority issues

FSC® C021528

51

52

Company Profile and Corporate Data
Company Name
Mitsubishi Paper Mills Limited
Address
2-10-14 Ryogoku, Sumida-ku, Tokyo 130-0026, Japan
Representative
Yukihiro Tachifuji, President & CEO
Founded1898
Paid-in Capital
36,561 million yen
Consolidated Number of Employees
3,676
Shareholder Register Administrator
Mitsubishi UFJ Trust and Banking Corporation
Independent Auditor
Ernst & Young ShinNihon LLC
Main Business Activities
The Mitsubishi Paper Mills Group is primarily engaged
in the manufacture, processing, and sale of paper, pulp,
and photosensitive materials, and the main products
and services of each division are provided below.
［Paper and Pulp Business］
Coated and uncoated graphic papers, magazine paper,
speciality printing paper, communication paper, hygiene
paper, electrical insulation pressboard, high-quality
white paperboard, speciality white paperboard, andother speciality paper, bleached kraft pulp, andspeciality pulp
［Imaging Media Business］
Inkjet paper, photographic paper, base paper forphotographic paper, printing plate materials, platemaking systems, CTP software, and chemicals［Speciality Materials Business］
Functional paper, nonwoven fabrics, filters, rewritable
media, battery separators, and speciality materials［Warehouse and Transport Business］
Warehousing and transport-related business［Other Businesses］
Engineering operations, sports facility management,
insurance agency business, real estate business⇨Reference site: Corporate Profile/Business Fields
https://www.mpm.co.jp/eng/company/gaiyo.html

53(as of March 31, 2020)

Main Group Companies
Mitsubishi Oji Paper Sales Co., Ltd.
Kitakami Hitec Paper Corp.
Mitsubishi Paper Engineering Co., Ltd.
Ryoshi Co., Ltd.
Diamic Co., Ltd.
NAMITSU Co., Ltd.
MPM Oji Home Products Co., Ltd.
Pictorico Co., Ltd.
Shin-Hokuryo Forest Products Co., Ltd.
Toho Tokushu Pulp Co., Ltd.
Hachinohe Paper Processing Co., Ltd.
KJ SPECIALTY PAPER Co., Ltd.
Takasago Paper Processing Co., Ltd.
Hachiryo Co., Ltd.
Ryoko Co., Ltd.
MPM Operation Co., Ltd.
Kyoryo Chemical Co., Ltd.
Hokuryo Co., Ltd.
Hakuryo Paper Technology Co., Ltd.
MPM Oji Eco-Energy Co., Ltd.
Mitsubishi Paper Holding (Europe) GmbH
Mitsubishi HiTec Paper Europe GmbH
Mitsubishi Imaging (MPM), Inc.
MPM Hong Kong Limited
Zhuhai MPM Filter, Ltd.
● Total number of authorized shares

90,000,000● Total number of outstanding shares

44,741,433● Shareholders

16,555(119 year-over-year increase)● Composition of shareholders
2.5

March 31,
2020

16.5

March 31,
2019

19.1

March 31,
2018

0

44.0
1.7

31.9
30.8
10

20

7.8

45.2
2.6

30

12.0

20.1
40

29.2

7.8

50

60

26.2
34.5

70

80

■ Financial institutions■ Financial instruments business operators■ Other corporations■ Foreign corporations, etc.
■ Individuals, other

90

100
（%）

⇨Reference site: Investor Relations
https://www.mpm.co.jp/eng/ir/index.html