Governance Strategy

Message from the Chairman

Masatoshi Kaku

Sustainability Strategy
Financial andNon-financial Data

The Oji Group Integrated Report 2022

Governance Strategy

The Oji Group Integrated Report 2022

sustainability-related challenges? Is Oji engaging in appropriate risk assessments in difficult business environments?
And is Oji making resolute decisions with regard to its investments in order to not just maintain the status quo but
achieve long-term growth?
Lastly, next year, in 2023, the Oji Group will be celebrating its 150th anniversary. Since Shoshi Kaisha (Paper
Manufacuturing Company) was founded on the proposalof Eiichi Shibusawa in 1873, we have continued to foster aspirt of “unity of economy and morality,” and continued toreform our business and management structures in order
to meet the changing expectations of the times and society. We will continue to co-exist with the world and society,and aim to be a corporate group which continues to grow.
I would like to ask all of our stakeholders to continue togrant us their exceptional understanding and support.

— Profitability —61

As I touched on a moment ago, in an uncertain business environment, it is no easy task to show leadershipand engage in appropriate management, and providing
supervision and support from diverse perspectives is a key
duty of the Board of Directors. At the present time, wehave four Independent Outside Directors. All of them possess views and extensive expertise in industries differingfrom those of the Oji Group. They are always unsparing inproviding comments, concerns, and cautions during meetings of the Board of Directors, the Nomination Committee,
and the Compensation Committee, and at briefings for
Outside Officers. In engaging in appropriate management
decisions which meet the expectations of the world, receiving a diverse array of opinions from a variety of perspectives is of extreme value. I am looking forward tocontinuing to receive their unreserved opinions.

Starting our new Medium-term Management Plan,
checkpoints and key items for management observation going forward
Board of Directors management which meets
shareholders’ expectations
The Oji Group started a new Medium-term Management
Plan in this fiscal year. We will be promoting initiatives
aimed at environmental issues and sustainability challenges as top priority items necessary for business survival.
Our paper business is itself sustainable, and we will betransforming our business structure by focusing on growthfields and markets. Further, we will be promoting the development of wood-derived, next-generation materials andcultivating them as replacements for petrochemical products to create businesses which will serve as a future pillarof the Oji Group. Through these initiatives, our aim is to
evolve Oji into a globally active corporate group withstrength in green innovation. The Board of Directors will
support Oji’s executive team through monitoring focusing
on the following questions: Is Oji steadily resolving

Initiatives for Profitability
Improvement

Meeting the level of governance required by thePrime Market and working on our internal structure
What kind of initiatives will be required of the Boardof Directors?
In April of this year, the Tokyo Stock Exchange restructured
and created three new markets. Subsequently, we werelisted on the Prime Market. While the Corporate Governance Code, revised in June of last year, made clear thelevel of governance required of a company listed on thePrime Market, we have long been working on our internal
structure, including but not limited to the composition of
the Board of Directors. Moving forward, we will not only besatisfied with formal structural development, but also willcontinue to make improvements while listening to theopinions of Independent Outside Directors and Audit &Supervisory Board Members so that we may demonstrate
governance capabilities on a level that also high in terms of
substance.

The Commitments I Want to Convey to Our Stakeholders— Green Innovation —Strengthening Governance and Transforming the Board of Directors in
Accordance with the Move to the Prime Market

Initiatives for ProductDevelopment

which have changed since the pandemic, will not return towhat they were before COVID-19 even after the pandemic
is over. Further, uncertainty in such international situations
as the invasion of Ukraine pose major operational risks to
the Oji Group in, among other forms, soaring raw material
prices. Against this backdrop, the Oji Group must aim forsustainable growth as a corporate group active on a global
level.
In a business environment where challenges are pilingup, it is necessary, within the context of appropriate risk
management, for management to lead the Group throughits decision-making. In order to support that decision-making, supervision of the business operation by the Board of
Directors will also be increasingly important from the perspective of corporate governance. Until last year, I served
concurrently as one of the Corporate Officers in charge ofbusiness execution. From this year, I will be taking part in
the Oji Group’s management as Chairman of the Board by
stepping away from the standpoint of a Corporate Officer
and ensuring the Board of Directors fulfills its functions.

— Sustainability —The best Board of Directors configuration and governance for the Oji Group in an extremely uncertain
business environment
Stepping away from the standpoint of a Corporate
Officer and determining from what perspective toobserve management and operations
In April 2022, I stepped down as CEO of the Oji Groupand assumed my new position as Representative Director
and Chairman of the Board. As Chairman of the Board, I
will endeavor to ensure the Board of Directors fulfills its
functions, and support new Group CEO Hiroyuki Isono
and all of the officers in charge of Group management.
Today, the world is becoming an increasingly uncertain
environment. Companies around the world are experiencing intense demand from international society to tackle
global environmental problems such as climate change
and marine plastic waste, among other sustainability issues. In addition, our lives and economic activity havebeen heavily affected by the COVID-19 pandemic, and it
seems as if the demand structure and people’s lifestyles,

Approximately 140,000 ha of Oji’s company-owned forests
in Japan and overseas are “conservation forests.” These
forests are also habitats for rare plants and animals, andtheir conservation is just one of the measures we are implementing to preserve biodiversity.
In order to implement sustainable business management, it is necessary for raw materials procurement to also
be sustainable. Based on the Oji Group Partnership Procurement Policy, the Oji Group engages in responsible raw
materials procurement which takes into consideration theenvironment and society through local monitoring and risk
assessments conducted in cooperation with our suppliersin Japan and overseas. Further, in 2020, we formulated
the Oji Group Human Rights Policy. This policy ensuresthat our entire supply chain shares our beliefs regarding
human rights, and we will implement initiatives to protect
human rights in collaboration with our suppliers.
In implementing its management strategies and realizing healthy growth and evolution, it is essential for Oji
Group to cultivate and invest in the human resources
which are the wellspring of a company’s strength. In order
to expand our overseas businesses, we are placing particular importance on the cultivation of human resources capable of flourishing globally. Of the Group’s approximately
36,000 employees (consolidated), the percentage of those
who are of nationalities other than Japanese reaches 54%.
Moving forward, our human resources will need to workand cooperate in a variety of countries with people of diverse nationalities, ideologies, cultures, and career histories. Inclusion and diversity are now a prerequisite in ahealthy workplace environment, and we are promoting
these concepts as such. I want our employees to not justaccept but enjoy diversity and to grow into truly global, capable people.

Initiatives forEnvironmental Issues

My Mission as Chairman of the Board

Complying with the TCFD recommendations andmonitoring initiatives based on our Environmental
Vision 2050 and Environmental Action Program 2030
Monitoring the environment, human rights, and occupational safety based on the Oji Group Partnership Procurement Policy and Oji Group Human
Rights Policy
Inclusion & diversity, and measures related to humanresources
The origins of the Oji Group lie in the paper industry. Paper
production starts with trees, and we have inherited a belief
that “those who use trees are responsible for planting
them.” Since long before the current focus on environmental issues, we have aimed to create a resource recycling-oriented business through forest recycling, water
recycling, and paper recycling. In this day and age, a company which sacrifices the environment and society cannot
survive. The Oji Group will continue to promote sustainable
management in harmony with the environment andsociety.
The Oji Group positions its decarbonization initiative, acountermeasure against climate change, as one of its toppriorities. In 2020, we formulated our Environmental Vision
2050 with the aim of achieving net-zero carbon by 2050,
as well as our Environmental Action Program 2030 toserve as a milestone in realizing that vision. In the same
year, we also endorsed the TCFD recommendations. As
we also explained our decarbonaization initiatives in detailelsewhere in this Integrated Report, we will steadily achieve
decarbonization by taking a two-pronged approach, implementing measures to reduce GHG emissions at our
manufacturing sites, and increasing absorption of CO2 by
expanding and conserving forests. In addition, as a corporate group which makes use of forest resources, the conservation of biodiversity is also a priority issue to us.

What the Oji Group
Aims For

Representative Director
and Chairman of theBoard,Oji Holdings Corporation

Sustainability Strategy Implementation and Risk Reduction Monitoring

History of the Oji Group’s
Value Creation

Managing the Board of
Directors to Achieve
Sustainability

62

Governance Strategy

Corporate Officers (Oji Holdings Corporation)
Michihiro Nara

Sachiko Ai

Representative Director of the Board
President and Group CEO

Independent Outside Director of the Board

Independent Outside Director of the Board

April 1978
Joined the former Nippon Pulp Industry Co., Ltd.
April 2011
Corporate Officer, the Company
April 2012
Executive Officer, the Company
October 2012 Executive Officer, the Company
June 2013
Director of the Board and Executive Officer,
the Company
April 2019
Representative Director of the Board,
President and CEO, the Company
April 2022
Representative Director and Chairman of theBoard, the Company (to the present)

April 1989

April 1984
Joined the Company
October 2012 Director of the Board, Oji Management OfficeInc.
April 2014
Corporate Officer, the Company
June 2015
Director of the Board and Executive Officer,
the Company
April 2021
Director of the Board and Senior Executive
Officer, the Company
April 2022
Representative Director of the Board,
President and Group CEO, the Company(to the present)

April 1974
June 2004

Director of the Board
Senior Executive Officer
General Manager, Corporate Sustainability Division
President, Printing and Communications MediaCOMPANYIn charge of Innovation Promotion Division
President, Oji Engineering Co., Ltd.

Director of the Board
Senior Executive Officer
President, Celulose Nipo-Brasileira S.A.

April 1984
April 2016
April 2017
April 2019
June 2020

Joined the former Honshu Paper Co., Ltd.
Corporate Officer, General Manager, Sales
Division, Oji F-Tex Co., Ltd.
Director and Corporate Officer, General
Manager, Sales Division, Oji F-Tex Co., Ltd.
Corporate Officer, the Company
Director of the Board and Executive Officer,
the Company (to the present)

April 1986
April 2017

Hiromichi Ogawa

Independent Outside Director of the Board

Independent Outside Director of the Board

April 1983
April 2008

Joined Japan Airlines Co., Ltd.
Manager, In-flight Sales Group, Japan Airlines
Co., Ltd.
April 2012Manager, Passenger Cabin Dept., JAL
Express Co., Ltd.
October 2014 Manager, Cabin Attendants Section 4, Haneda
Airport, Japan Airlines Co., Ltd.
April 2015
Professor, College of Foreign Studies, Kansai
Gaidai University (to the present)
June 2019
Outside Director, Member of the Board,
ShinMaywa Industries, Ltd. (to the present)
June 2021
Independent Outside Director of the Board,
the Company (to the present)

April 1981
Joined Mitsubishi Corporation
June 1998
Director, Nichiryo Baking Co., LTD.
April 2004
Senior Vice President, Lawson, Inc.
September 2004 Executive Managing Officer, Lawson, Inc.
November 2005 Unit Manager of Lawson Business, Mitsubishi
Corporation
April 2006
Unit Manager of Retail Business, Mitsubishi
Corporation
April 2014
Senior Vice President (“riji”) and General
Manager of Life Industry Group CEO Office,Mitsubishi Corporation
April 2017
Advisor, Itoham Yonekyu Holdings Inc.
June 2017
Director Chairman of the Board, Itoham
Yonekyu Holdings Inc.
June 2022
Independent Outside Director of the Board,
the Company (to the present)

Tomihiro Yamashita

Nobuko Otsuka

Audit & Supervisory Board Member

Audit & Supervisory Board Member

April 1982
Joined the Company
October 2012 General Manager, Internal Audit Department,
Corporate Governance Division, the Company
April 2014
Audit & Supervisory Board Member, Oji
Container Co., Ltd.
April 2016
Corporate Officer and Deputy General
Manager, Technology Division, Oji Container
Co., Ltd.
June 2017
Audit & Supervisory Board Member, theCompany (to the present)

January 2016 Joined Oji Management Office Inc.
Group Manager, Internal Audit Department,
Corporate Governance Division, the Company
April 2018
General Manager, Internal Audit Department
and Corporate Compliance Department,
Corporate Governance Division, the Company
April 2019
General Manager attached to General
Manager of Corporate Governance Division,
the Company
June 2019
Audit & Supervisory Board Member, theCompany (to the present)

Hidero Chimori

Noriko Sekiguchi

Independent Outside Audit & Supervisory Board Member

Independent Outside Audit & Supervisory Board Member

April 1983
June 2002

March 1994 Registered as Certified Public Accountant
January 2002 Re-registered as Certified Public Accountant
November 2010 Representative of Sekiguchi CPA Office(currently Sekiguchi Noriko CPA Office)(to the present)
July 2012
Registered as Certified Tax Accountant
June 2015
Outside Director, TOKYO OHKA KOGYO CO.,LTD.
(to the present)
January 2019 Executive Officer, Chifure Holdings Corporation
June 2021
Independent Outside Audit & Supervisory
Board Member, the Company (to the present)
June 2022
Outside Audit & Supervisory Board Member,
Ryoden Corporation (to the present)

June 2006
June 2016
June 2019
June 2021

Yuji Onuki

Director of the Board
Executive Officer
President, Industrial Materials COMPANY
President, Household and Consumer Products
COMPANY
President, Oji Industrial Materials Management Co., Ltd.
President, Oji Materia Co., Ltd.

Director of the Board
Executive Officer
President, Forest Resources and Environment
Marketing COMPANY
President, Oji Green Resources Co., Ltd.
President, Oji Forest & Products Co., Ltd.
President, OCM Fiber Trading Co., Ltd.

April 1985
June 2013
April 2016
April 2020
April 2022
June 2022

April 1982
Joined the former Honshu Paper Co., Ltd.
October 2012 Director, Oji Green Resources Co., Ltd.
April 2014
Managing Director, Oji Green Resources Co.,Ltd.
April 2021
Corporate Officer, the Company
April 2022
Executive Officer, the Company
June 2022
Director of the Board and Executive Officer,
the Company (to the present)

The Oji Group Integrated Report 2022

Joined the Company
Corporate Officer, Oji Paper Co., Ltd.
Director, Oji Paper Co., Ltd.
Corporate Officer, the Company
Executive Officer, the Company
Director of the Board and Executive Officer,
the Company (to the present)

Takashi Nonoue

Financial andNon-financial Data

63

Takayuki Moridaira

Registered as an attorney-at-law
Outside Audit & Supervisory Board Member,
OMRON Corporation
Outside Audit & Supervisory Board Member,
DUSKIN CO., LTD.
Independent Director, Audit & Supervisory
Committee Member, Kobe Steel, Ltd.
Outside COMPANY Auditor, ROHM Co., Ltd.
Outside Director, Member of the Board, Audit
and Supervisory Committee Member, ROHM
Co., Ltd. (to the present)
Independent Outside Audit & Supervisory
Board Member, the Company (to the present)

Sustainability Strategy

April 2019
April 2022
June 2022

Joined the Company
Director, Oji Industrial Materials Management
Co., Ltd.
Corporate Officer, the Company
Executive Officer, the Company
Director of the Board and Executive Officer,
the Company (to the present)

Seiko Nagai

Governance Strategy

Director of the Board
Executive Officer
General Manager, Corporate Governance Division
President, Oji Management Office Inc.
In charge of:Oji Human Support Co., Ltd.
Oji Business Center Co., Ltd.
Oji Paper Management (Shanghai) Co., Ltd.
Oji Asia Management Sdn. Bhd.
Oji Logistics Co., Ltd.

April 2021

— Profitability —Akio Hasebe

Director of the Board
Executive Officer
President, Functional Materials COMPANY
President, Oji Functional Materials Progressing Center Inc.

June 2020

Initiatives for Profitability
Improvement

Shigeki Aoki

June 2016— Green Innovation —April 2021

Joined the Company
Corporate Officer, Oji Paper Co., Ltd.
Director, Oji Paper Co., Ltd.
Corporate Officer, the Company
Executive Officer, the Company
Director of the Board and Executive Officer,
the Company
Director of the Board and Senior Executive
Officer, the Company (to the present)

Joined Oji Management Office Inc.
President and Representative Director,
Oji Forest & Products Co., Ltd.
January 2015 Corporate Officer, the Company
June 2015
Director of the Board and Executive Officer,
the Company
April 2022
Director of the Board and Senior Executive
Officer, the Company (to the present)

June 2015

April 2019

Initiatives for ProductDevelopment

April 1984
April 2014
April 2016
April 2017
April 2018
June 2019

May 2013
April 2014

June 2015

June 2016— Sustainability —Kazuhiko Kamada

June 2014

Joined The Mitsubishi Trust and Banking
Corporation (currently Mitsubishi UFJ Trustand Banking Corporation)
Executive Officer, General Manager, Corporate
Consulting Division, Mitsubishi UFJ Trust andBanking Corporation
Executive Officer, General Manager, Audit Division,
Mitsubishi UFJ Trust and Banking Corporation
Executive Officer, Acting General Manager, Audit
Division, Mitsubishi UFJ Financial Group, Inc.
Independent Outside Director of the Board,
the Company (to the present)
Director and Managing Executive Officer, Audit
Division (CAO), Mitsubishi UFJ Trust andBanking Corporation (to the present)
Managing Executive Officer, Group Deputy
CAO, Mitsubishi UFJ Financial Group, Inc.
(to the present)

Initiatives forEnvironmental Issues

Fumio Shindo

June 2013

Registered as an attorney-at-law
Outside Audit & Supervisory Board Member,
Nihon Tokushu Toryo Co., Ltd.
Outside Audit & Supervisory Board Member,
Seiko Epson Corporation
Independent Outside Director of the Board,
the Company (to the present)
Outside Director, Nihon Tokushu Toryo Co.,
Ltd. (to the present)
Outside Audit & Supervisory Board Member,
Chori Co., Ltd.
Outside Director (Audit & Supervisory
Committee Member), Seiko Epson
Corporation
Outside Director (Audit & Supervisory
Committee Member), Chori Co., Ltd.

What the Oji Group
Aims For

Hiroyuki Isono

Representative Director and Chairman of the Board
Chairman of the Board

History of the Oji Group’s
Value Creation

Masatoshi Kaku

Independent Outside Audit & Supervisory Board Member
April 1982
Appointed as public prosecutor
January 2015 Director-General of the Public Security
Intelligence Agency
September 2016 Superintendent Public Prosecutor of the
Fukuoka High District Public Prosecutors
OfficeFebruary 2018 Retired from Superintendent Public Prosecutor
April 2018
Inspector General of Legal Compliance of the
Ministry of Defense
March 2021 Retired from Inspector General of Legal
Compliance of the Ministry of Defense
June 2021
Registered as an attorney-at-law
June 2022
Independent Outside Audit & Supervisory
Board Member, the Company (to the present)

The Oji Group Integrated Report 202264Governance Strategy

Corporate Governance

Basic Concepts, Framework, and Operational Policies

ReportingAccounting Auditor(Auditing firm)

Appointment anddismissal

Auditing

Audit & Supervisory Board

Offering opinions

Board of Directors
Reporting
Reporting

Cooperation and refusal of reelection

Judgement of appropriateness of accounting audits

ReportingDirection

Discussion and reporting

Representative Director of the Board,
President (Group CEO)
Direction andsupervisionInternal Audit Dept.

Direction andsupervision

Discussion andreportingCorporate Officers

Discussion
andreportingCorporate Governance Div.

Corporate Compliance Dept.
Legal Affairs Dept. General Affairs Dept.

Corporate Sustainability Div.

Corporate Sustainability Dept.
Public Relations and Investor Relations Dept.
Safety Administration Dept.

The Oji Group Integrated Report 2022

1/1
1/1
1/1
1/1

2/2
2/2
2/2
2/2
1/1

* Positions during FY2021.
* Concerning Independent Outside Director Seiko Nagai’s attendance at meetings of each Committee, the scope of the total number of meetings includes only
those meetings held after her appointment on June 29, 2021.

Policy on Determination of Director Compensation and Total Compensation Amount
Policy on Determination of Director Compensation
Oji Holdings has designed its compensation programs with an emphasis on the roles performed by the Director compensation program such that the Board of Directors promotes sustainable growth and increasing medium- to long-term corporate
value of the company and pursues enhanced profitability and capital efficiency. The specifics of the Director compensation
program and determination policies are set forth in the Fundamental Policies on Corporate Governance. Director compensation comprises base compensation that is fixed compensation, bonuses that reflect short-term performance, and stockbased compensation that reflects medium- to long-term improvement in corporate value. Determinations are made by the
Board of Directors based on recommendations submitted by the Compensation Committee.
Please refer to the Annual Securities Report for details concerning performance-linked compensation including bonuses and stock-based compensation.
Securities Reports (in Japanese) https://investor.ojiholdings.co.jp/ja/ir/library/securities.html

Position

Fixedcompensation

Representative Director and Chairman of the Board
Representative Director of the Board, President and Group CEO
Director of the Board, Senior Executive Officer
Director of the Board, Executive Officer
Independent Outside Director

50%
50%
50%
50%
100%

Performance-linked compensation
Stock-based
Bonuses
Total
compensation

Total

25%
25%
25%
25%
—

100%
100%
100%
100%
100%

25%
25%
25%
25%
—

50%
50%
50%
50%
—

Total amount of compensation for each officer category, total amount of compensation, etc. by type, and number of
eligible officers (FY2021)
Officer category

Total amount ofcompensation(million yen)

Sustainability Committee

Other Business Companies

65

Committee Chair* The payment ratios will fluctuate due to changes in performance-linked compensation such as bonuses and stock-based compensation.

Each COMPANYGroup Companies

1/1

Directors (excluding Independent Outside Directors)
Audit & Supervisory Board Members (excluding Independent
Outside Audit & Supervisory Board Members)
Independent Outside Directors and Independent Outside Audit& Supervisory Board Members

Total amount of compensation, etc. by type (million yen)
Performance-linked compensation
Fixed
Stock-based
compensation
Bonusescompensation

Number of
eligible officers(persons)

512

213

157

141

9

51

51

—

—

2

92

92

—

—

8

The Oji Group Integrated Report 2022

Financial andNon-financial Data

Holdings Management MeetingGroup Management Meeting

Auditing

Committee Chair

Michihiro Nara
Toshihisa Takata
Sachiko Ai
Seiko Nagai

Nomination Committee
Compensation Committee

Appointment, dismissal,
and supervision

Cooperation

Masatoshi Kaku

2/2

Sustainability Strategy

Determining the proposals of appointment, dismissal

Accounting
audits

1/1

Ratios of performance-linked compensation and non-performance-linked compensation

Appointment anddismissal

Audit & Supervisory Board
Members’ Office

Susumu Yajima

Attendance

Governance Strategy

General Meeting of Shareholders
Appointment anddismissal

Compensation
Committee

Attendance— Profitability —Corporate Governance Structural Diagram

Representative Director andChairman of the Board
Representative Director of theBoard, President
Independent Outside Director
Independent Outside Director
Independent Outside Director
Independent Outside Director

Nomination Committee

Initiatives for Profitability
Improvement

Independent Outside Directors) and the Audit & Supervisory Board consists of five Audit & Supervisory Board
Members (including three Independent Outside Audit &Supervisory Board Members), and Representative Director and Chairman of the Board chairs the Board of Directors. In FY2021, attendance of Independent Outside
Directors and Independent Outside Audit & Supervisory
Board Members at the Board of Directors meetings (14meetings held) was 97.7% and attendance of Independent Outside Audit & Supervisory Board Members at the
Audit & Supervisory Board meetings (13 meetings held)
was 100%.

Name— Green Innovation —The Oji Group has adopted a COMPANY system underwhich Oji Holdings oversees the formulation of Groupmanagement strategies and Group governance and each
COMPANY, made up of closely-related businesses, playsa central role in business operations. This structure accelerates decision making by each business unit andclarifies management responsibilities.
In addition, as a company with Audit & Supervisory
Board, Oji Holdings reinforces Group-wide governancethrough audits of the execution of duties by Directors
carried out by the Audit & Supervisory Board Members
and the Audit & Supervisory Board. The Board of Directors consists of twelve Directors (including four

Position

Initiatives for ProductDevelopment

Corporate Governance Structures

Structures of the Nomination Committee and the Compensation Committee and their meetings held in FY2021— Sustainability —https://investor.ojiholdings.co.jp/en/ir/library/governance_report.html

Roles of Nomination Committee
Formulate nomination, appointment, and dismissal policies related to personnel affairs for Directors, Audit & Supervisory Board Members, Corporate Officers, andCorporate Advisors, deliberate on candidates, and submit recommendations to the Board of Directors.
Roles of Compensation Committee
Deliberate on compensation structures, compensationlevels, and evaluation of Directors, Corporate Officers,
and Corporate Advisors as well as analysis and evaluation of the effectiveness of the Board of Directors, andsubmit recommendations to the Board of Directors.

Initiatives forEnvironmental Issues

Fundamental Policies on Corporate Governance
The Fundamental Policies on Corporate Governance set forth the basic concepts, framework, and operational
policies regarding corporate governance. https://www.ojiholdings.co.jp/english/group/policy/governance.html
Corporate Governance Report
The Oji Group posts its Corporate Governance Report, which it submits to Tokyo Stock Exchange, on its official
website.

The Nomination Committee and Compensation Committee were established as advisory bodies to the Board of
Directors in 2015. These two committees enhance objectivity and transparency in their decision making, andthe Compensation Committee analyzes the effectivenessof and deliberates the evaluations of the Board of Directors. Each of the Committees consists of two internal Directors and four Independent Outside Directors, with the
Independent Outside Directors representing more thanhalf of the Committee members.

What the Oji Group
Aims ForThe Oji Group established the Oji Group Corporate Code of Conduct based on the fundamental values and philosophy that have been handed down since the Group’s foundation and has undertaken business activities with
an awareness of its role as a corporate member of society and a strong sense of ethics throughout the Group.
Going forward, in order to increase corporate value and become a company that is trusted by society, we will
work to ensure management efficiency, soundness, and transparency, while positioning the enhancement ofcorporate governance as a priority management issue and building trusting relationships with diverse
stakeholders.

History of the Oji Group’s
Value Creation

Nomination Committee and Compensation Committee

66

Governance Strategy
Corporate Governanceexcellent character and insight as well as high level of
specialization and extensive experience.
Process
When nominating candidates for Directors, the Nomination Committee, an advisory body to the Board of Directors, deliberates and recommends to the Board of
Directors. As for nomination of candidates for Audit &Supervisory Board Members, the Nomination Committee
recommends to the Board of Directors with the consent
of the Audit & Supervisory Board, following consultation
with the Nomination Committee. The Board of Directors
receives reporting from the Committee, deliberates andmakes decisions.

Shigeki Aoki
Akio Hasebe(newly appointed)

Takayuki Moridaira(newly appointed)(newly appointed)

Michihiro Nara
Sachiko Ai
Seiko Nagai
Hiromichi Ogawa*

Director of the
Board
Director of the
Board
Director of the
Board
Director of the
Board
Director of the
Board

Executive Officer(Independent
Outside)(Independent
Outside)(Independent
Outside)(Independent
Outside)marks indicate the abilities that each Director possesses, but the abilities in which each Director can demonstrate greater strength and expertise are listed
below according to his or her position in the Company. The following list is based on their positions, and does not represent all of the abilities possessed byeach Director.
Representative Director of the Board: Up to four (4) Director of the Board and Senior Executive Officer: Up to four (4)Director of the Board and Executive Officer: Up to three (3) Director of the Board (Independent Outside): Up to two (2)Independent Outside Officers

67

The Oji Group Integrated Report 2022

Attendance at Audit &Supervisory Board
meetings

Mikinao Kitada

Attended 13 of
14 meetings

Attended 13 of
13 meetings(92.9%)(100%)

Hidero Chimori

Attended 10 of
10 meetings

Attended 9 of
9 meetings(100%)(100%)

Noriko Sekiguchi

Attended 9 of
10 meetings

Attended 9 of
9 meetings(100%)

Statements at meetings
Made statements based on his extensive experience, high-level expertise andwide-ranging knowledge as a public prosecutor and attorney-at-law
Made statements based on his extensive experience, high-level expertise andwide-ranging knowledge, in particular, in the corporate legal affairs and corporate
governance field, as an attorney-at-law
Made statements based on her abundant practical experience at companies in
addition to her extensive experience, high-level expertise and wide-ranging
knowledge on financial accounting as a certified public accountant

The Fundamental Policies on Corporate Governancestipulates that the Board of Directors shall conduct analysis and evaluation of the effectiveness of the Board of Directors every year, and take required measures to ensure
the effectiveness of the Board of Directors as a whole aswell as disclose an overview of the findings. In order toevaluate the effectiveness of the Board of Directors, we
conduct a survey on the role, structure, and operation of
the Board of Directors from April to May every year for all
Directors and Audit & Supervisory Board Members. The
evaluation findings will be analyzed by the Compensation
Committee, in which Independent Outside Directors participate, and then deliberated by the Board of Directors
based on the analysis results.
As a result of the analysis and evaluation of the Boardof Directors of FY2021 conducted in and after April 2022,

it was confirmed our Board of Directors and its subordinate meetings have continued to function well. In particular, the view was shared that the provision of management
information and explanations regarding agendas to Independent Outside Officers have been improved, and thatthe suggestions and proposals made by Independent
Outside Officers have been appropriately reflected in deliberations and resolutions. On the other hand, we identified issues that still need to be addressed, such as
formulating management strategies, providing directions,etc., and decided to continue implementing the improvement measures. We will consider and take required measures to continually work on functional improvements of
the Board of Directors.

Policy for Strategic Shareholding
Outside Directors make up the Nomination Committee
and the Compensation Committee.
Persons with highly specialized and wide-ranging
knowledge who are able to express opinions that are independent from management and from the perspectivesof various stakeholders are selected as Independent Outside Director candidates, and persons with excellent
character and insight, a high level of specialization, andextensive experience are selected as Independent Outside Audit & Supervisory Board Member candidates.

The Oji Group strategically holds shares that are expected to contribute to the sustainable growth of the Groupand the improvement of corporate value over the medium
to long term as part of its management strategies for the
purpose of business alliances and strengthening andmaintenance of long-term and stable relationships withbusiness partners. The Board of Directors specifically examines for each individual stock every year whether the
purpose of strategic shareholding is appropriate andwhether the benefits and risks associated with strategic

shareholding are commensurate with the cost of capitalto verify the appropriateness of the holding. We sellshares properly and appropriately if the rationality forholding them has diminished to reduce strategic shareholding.

The Oji Group Integrated Report 2022

Financial andNon-financial Data

Status of Activities by and Reason for Appointment
of Independent Outside Officers
We have appointed four Outside Directors and three Outside Audit & Supervisory Board Members, each of whom
is designated as an Independent Officer. All of them attend Board of Directors meetings, and the briefings thatare held twice each month in principle and are conductedby the officer responsible for the Corporate Governance
Division regarding matters submitted to the Management
Meeting and matters planned to be submitted to theBoard of Directors. In addition, the four Independent

Attendance at Boardof Directors meetings

Name

Sustainability Strategy(newly appointed)

Executive Officer

Main Activities of Independent Outside Audit & Supervisory Board Members in FY2021

Effectiveness Evaluation of the Board of Directors

Executive Officer

Director of the
Board* Concerning Ms. Seiko Nagai’s attendance at meetings of the Board of Directors, the scope of the total number of meetings includes only those meetings ofthe Board of Directors held after her appointment on June 29, 2021.

* Concerning Mr. Hidero Chimori and Ms. Noriko Sekiguchi’s attendance at meetings of the Board of Directors and the Audit & Supervisory Board, the scope of the total
number of meetings includes only those meetings of the Board of Directors and the Audit & Supervisory Board held after their appointments on June 29, 2021.

Senior Executive
Officer

Executive Officer(100%)

Fulfilled the role expected of her by making comments concerning the Company’s management from an independent standpoint, from a multifaceted perspective, including professional viewpoints developed
through customer service and university teaching activities, and based on her extensive experience, highlevel of expertise, and wide range of insight(90%)

Senior Executive
Officer

Director of the
Board(100%)

Fulfilled the role expected of her by making comments concerning the Company’s management from an independent standpoint, from a multifaceted perspective from the business world, including the financialarea, and based on her high level of expertise and wide range of insightGovernance Strategy

Yuji Onuki

Group CEO

Seiko Nagai

Attended 10 of
10 meetings(100%)

Fulfilled the role expected of him by making comments concerning the Company’s management from an
independent standpoint, from a multifaceted perspective, including an international viewpoint as a former
diplomat, and based on his extensive experience, high level of expertise, and wide range of insight— Profitability —Kazuhiko Kamada

ESG

Sachiko Ai

Attended 14 of
14 meetings(100%)

Initiatives for Profitability
Improvement

Fumio Shindo

Personnel
Purchaseand labor
andInternationality
management procurement

Toshihisa Takata

Attended 14 of
14 meetings

Fulfilled the role expected of him by making comments concerning the Company’s management from an
independent standpoint, from a legal perspective as an attorney-at-law, and based on his extensive experience, high level of expertise, and wide-ranging insight— Green Innovation —Hiroyuki Isono

Representative
Director andChairman of the
Board
Representative
Director of theBoard, President
Director of the
Board
Director of the
Board
Director of the
Board

Sales andmarketingAttended 14 of
14 meetings

Initiatives for ProductDevelopment

Masatoshi Kaku

Position

Manufacturing Researchandandtechnologies development

Michihiro Nara

Summary of statements made and duties performed with respect to expected role

— Sustainability —Name

Corporate Finance andmanagement accounting

Attendance at Boardof Directors meetings

Initiatives forEnvironmental Issues

Directors’ Skill Map
Oji Holdings has identified the skills that members of the Board of Directors should possess to realize the Group’s management strategies, as described below. We place value on capabilities in the fields of “manufacturing and technologies,”“research and development,” “purchase and procurement,” and “ESG,” etc. which help promote sustainability and innovation, in addition to general management skills. The capabilities of each Director are as follows:

Name

What the Oji Group
Aims For

PolicyAt Oji Holdings, the Fundamental Policies on Corporate
Governance stipulate as a Director nomination policy thatthe Board of Directors shall comprise Directors who takenotices on a balance between diverse knowledge andexpertise concerning the business operated by theGroup, and that candidates be nominated for Directors
who possess excellent character and insight and who
may contribute to the sustainable growth as well as theincrease of medium- to long-term corporate value of theGroup. The Fundamental Policies also stipulates thatcandidates be appointed for Audit & Supervisory Board
Members who are capable of executing the duties of Audit & Supervisory Board Members, and who possess

Main Activities of Independent Outside Directors in FY2021

History of the Oji Group’s
Value Creation

Policy and Process for Nomination of Directors and Audit & Supervisory Board Members

68Governance Strategy

Compliance

The Oji Group
Behavior Standard

Action guidelines for all management andemployees of the Oji Group“Behavior standard to be adopted in the daily activities in order tomaterialize the spirit of the Oji Group Corporate Code of Conduct”

Toward the materialization of the spirit of the Oji Group Corporate Code of Conduct, the Oji Group Behavior Standard
consisting of 29 items is adopted as a standard to be followed in the daily activities of all management and employees asa member of international society.
The Oji Group Behavior Standard
https://www.ojiholdings.co.jp/english/group/policy/behavior_standard.html

69

The Oji Group Integrated Report 2022

Reporting

ReportingInstructions
Instructions
Discussion
Notification of
investigation
results

Internal desk
Corporate ComplianceDepartment ofOji Holdings Corporation

Consultations
and reports

Request forinvestigation
andcooperation

Audit & Supervisory Board Member,Oji Holdings Corporation
ReportingExternal desk

Notice of detailsof consultations
or report

Law firm

Reporting

Improvements,
guidance,
Consultations
Internal investigation
recommendations committee and external experts
Response
andreports(Established as necessary)
Confirmation
of
facts
and
Company that is the subject
determination of causesof a consultation or report

Response

Consulting and reporting individual<All Oji Group officers, employees (including part-time, short-term,
and temporary employees), and former employees>

The Oji Group Integrated Report 2022

Financial andNon-financial Data

Sharing the Code of Conduct and Behavior Standard and Providing Follow-up Sessions
We have distributed the booklet to officers and employees to thoroughly disseminate the contents of the Oji Group Corporate Code of Conduct and the Oji Group Behavior Standard. In addition, with the revision in October 2020, we haveseparately prepared teaching and explanatory materials, and translated the education materials into 12 languages in order
for and distributed them to, overseas employees, to utilize them at a compliance meeting held at each worksite of Group
companies. Moreover, the Corporate Compliance Department includes the contents of the education materials in the
Compliance News periodically published for Japan and overseas, in order to disseminate the Oji Group Corporate Codeof Conduct and the Oji Group Behavior Standard and encourage them to practice the Standard.

Director of the Board,
President,
Oji Holdings Corporation

General Manager, Corporate
Governance Division,
Oji Holdings Corporation

Sustainability Strategy

The Oji Group Behavior Standard

Whistleblowing System
The Oji Group operates the Business Ethics Helpline (illustrated in the diagram on the right) based on the Group
Whistleblowing Regulations to provide all officers andemployees (including part-time and short-term employees) the opportunity to consult and make reports with theaim of prevention or remediation through early discoveryof violations of laws and regulations and misconduct.
Whistleblowing desks are established both internally (inthe Oji Holdings Corporate Compliance Department) andexternally (a law firm) to discover early and correct violations of laws and regulations, human rights abuses suchas harassment and discrimination, corrupt practices including bribery, and other misconduct. We also work tosolve employees’ daily concerns related to compliance.
Since the amended Whistle-Blower Protection Act
took effect in June 2022, we adapted our Regulations to
the amended Act, and held a briefing for compliance promotion leaders of Group companies to ensure they havethorough knowledge of the details of the Regulations(such as confidentiality and how to conduct an appropriate investigation).

Governance Strategy

Guidelines for Group companies“Promotion of Corporate activities based on high ethical principles
appropriate for an organization that enjoys the trust of society”“Contribution to the genuine enriched society”— Profitability —The Oji Group
Corporate Code of
Conduct

In order to establish good, wholesome relationships
with business partners, in April 2020, we established newrules and guidelines in addition to “provision of benefits,”
prohibiting in principle “receipt of benefits” (receipt of “entertainment,” “gift,” etc. from a business partner) which
may raise suspicion of bribery from the other party, thereby more clearly and specifically stipulating the requirements for anti-bribery each Group company adheres to.

Initiatives for Profitability
Improvement

Direction that the Oji Group will take
“Creation of Innovative Value”“Contribution to the Future and the World”“Harmony with Nature and Society”

Anti-Corruption Initiatives
Pursuant to the Principle 10 of the United Nations Global
Compact “the anti-corruption initiatives,” we have expressly provided for “wholesome relationship with politics
and government” and “maintenance of an honest, wholesome relationship with business partners” in the Oji
Group Behavior Standard, and further established Group
Anti-Bribery and Anti-Corruption Regurations, to ensuretransparency of political contributions, prohibit illegal contributions or donations, and prohibit bribery and othercorrupt acts and practices.

to provide the same training to officers of each Group
company starting from FY2021.

— Green Innovation —Management
Philosophy

Contribution to the Realization of a Sustainable Society
Respect for Human Rights
Communication with Society and Participation in Social
Contribution Activities
Coexistence with International Society
Promotion of Crisis Management

Initiatives for ProductDevelopment

Compliance with Laws and Regulations and Fair
Business Activities
Developing a Rewarding Work Environment with
Consideration for Safety and HealthSupply of Safe, Useful Products and Services
Addressing Environmental Issues

In April 2022, we provided senior management training to newly appointed
officers (including corporate officers) of Oji Group companies in person or
remotely. The training was made available for officers already in office toview for a certain period of time to confirm their knowledge.

— Sustainability —I. We, the management and employees of the Oji Group, hereby adopt the Oji Group Corporate Code of Conduct, as detailed below, as guiding principles for corporate activities based on awareness of our responsibilities as a corporate citizen in international society, and on high ethical principles appropriate for an organization that enjoys the trust of society.
II. We, the management and employees of the Oji Group, will always strive to implement this Code and to contribute to realization of the genuine enriched society.

Activities for Raising Compliance AwarenessNumerous opportunities are created for employees toacquire necessary knowledge including compliance training as part of rank-based training for newly-appointed
managers and new employees as well as periodic internal training on themes that are common to all Group
companies such as the Subcontract Act, the Antimonopoly Act, and the prevention of bribery. Also, the Compliance News is issued every month to introduce current
internal and external compliance topics, provide teachingmaterials in quiz format, explain the Oji Group Corporate
Code of Conduct and Oji Group Behavior Standard, andinform employees of the whistleblowing system.
In addition, while we have conventionally provided
training to newly appointed officers of the Oji Holdings toacquire compliance knowledge, etc. required to fulfil theirrespective roles and responsibilities pursuant to the Fundamental Policies on Corporate Governance, we decided

Initiatives forEnvironmental Issues

The Oji Group Corporate Code of Conduct

Measures for Promoting Compliance

What the Oji Group
Aims ForThe Oji Group incorporated the principles on human rights, labor, the environment, and anticorruption of the United Nations Global Compact and established the Oji Group Corporate Code of Conduct and the Oji Group Behavior Standard,
action guidelines for the Code, in 2004. They were revised in FY2020 to reflect the social environment including the SDGs
and the Management Philosophy, to make them more in line with the demands of the times.
The alteration or abolition of the Corporate Code of Conduct and the Behavior Standard requires a resolution by the
Board of Directors. With the involvement of the Board, this Code of Conduct and the Behavior Standard have been established as the standard of activities performed by all officers and employees of the Oji Group. The Code of Conduct andthe Behavior Standard have been translated into the respective languages of each country in which the Group has its
business sites and are made known to all officers and employees that belong to the Group. All officers and employees of
the Oji Group strive to understand the Oji Group Corporate Code of Conduct and the Oji Group Behavior Standard correctly and to practice them. If an action against them is conducted or if a violation is suspected, it must be reported or
consulted with a supervisor or the compliance office of the company or worksite, or the Corporate Ethics Helpline (Group
internal whistleblowing) desks.

The Corporate Compliance Department of Oji Holdings draws up policies and measures for promoting buisiness ethics
and compliance in the entire group. It also formulates and reviews the Oji Group Corporate Code of Conduct and the Oji
Group Behavior Standard and establishes internal whistleblowing systems and rules on anti-corruption. In addition, at domestic and overseas Group companies, compliance managers and compliance promotion leaders play a central role inpromotion activities and work to instill buisiness ethics and compliance awareness throughout the Group.

History of the Oji Group’s
Value Creation

Corporate Code of Conduct and Behavior Standard70

Governance Strategy

Risk Management

Flow of Risk Management

On April 1, 2022, we established the “Sustainability Committee,” which is chaired by the Representative Directorof the Board, President and consists of Directors of Oji
Holdings Corporation and Presidents of all COMPANIES,
to strengthen our efforts to fulfill its roles and responsibilities toward the realization of a sustainable society and to

discuss the Group’s risks associated with sustainability
and measures against those risks.
We also established the Corporate Sustainability Division at Oji Holdings as a division which oversees andmanages Group companies’ efforts for sustainability.

Purpose of Sustainability Committee
Risk exploration
andidentification

Secretariat: Corporate Sustainability
Department

Cooperation

Internal Audit Dept.

ReportingBoard of Directors
Development and supervision

Key issues discussion and reporting

Group Management Meeting

ReportingDiscussion and reporting

Development and supervision
Auditing

Corporate Sustainability Div.

Corporate Compliance Dept.

Corporate Sustainability Dept.

General Affairs
Dept.

Legal Affairs
Dept.

Public Relations
and Investor
Relations Dept.

Innovation
Promotion Div.

SafetyAdministration
Dept.

Sustainability Committee

Group Companies
COMPANY Risk Management Department

71

The Oji Group Integrated Report 2022

in times of COVID-19. We will work to make sure thatthese measures will take hold and further strengthen ourefforts to improve IT security from a global perspective.
Information Security Structural Diagram
Group Management Meeting
ReportingOverseeing department
Oji Business Center
Request
Guidance
andand
Promotion Managers Meeting
reportingsupportFinancial andNon-financial Data

Oji Management Office Human Resources Div., Financial Div., Corporate Planning Div.,Oji Business Center, Oji Engineering Sales and Engineering Div.,Oji Green Resources Forest Resources and Environment Marketing Div.

The Oji Group positions information obtained through its
business activities as important assets. We have enacted
Information Systems Usage and Risk Management Regulations to respond promptly to changes in the ever-sophisticating IT environment, and have established allgroup system to prepare for cyber threats such as unauthorized access prevention and disasters. The Oji Business Center, as a department that oversees our
information system risk management, inspects the information system risks across the Group, and maintains,
manages and improves IT security. In addition, it regularly
provides educational activities and information on the latest risk trends it has captured to employees using company newsletters, and conducts targeted email training
for employees to deal with phishing e-mails that are becoming more sophisticated every day. In FY2021, we revised regulations to respond to changes in work styles,
such as the spread of cloud computing and teleworking

Sustainability Strategy

Corporate Governance Div.

Measures for Information Security

Governance Strategy

Auditing

Audit & Supervisory Board— Profitability —Risk Management Structure

Chairman: Representative Director of theBoard, President (Group CEO)
Committee Members (Directors):
General Manager, Corporate
Sustainability Division
General Manager, Corporate
Governance Division
President of each COMPANY
Director of the Board, Oji Holdings
Corporation appointed by Group CEO

Initiatives for Profitability
Improvement

If the risk assessment detects risks, we share the risks across the Oji Group to prevent them fromoccurring.

Sustainability Committee Structure— Green Innovation —Group-wide
sharing ofidentified risks

The Board of Directors supervises the enhancement and implementation of risk management. Management
divisions regularly report their risk management status to the Group Management Meeting, and disucuss
and report key issues to the Board of Directors. If a new risk occurs, it will be discussed and reported to theGroup Management Meeting and the Board of Directors.

Consultation Matters
Matters related to climate change risks andcountermeasures
Matters related to sustainable forest
management
Matters related to supply chain risks andcountermeasures
Matters related to environmental risks andcountermeasures
Matters related to human rights risks andcountermeasures
Matters related to inclusion and diversity
promotion
Other important matters and measures related
to sustainability

Initiatives for ProductDevelopment

Submission andreporting to theBoard ofDirectors, etc.

We screen investments and loans, such as those for new businesses, not only by examining economic aspects but also from the viewpoint of environment, social and governance by following the Oji Group Corporate Code of Conduct, the Oji Group Behavior Standard, the Oji Group Partnership Procurement Policy, theOji Group Human Rights Policy, and other criteria. We also ensure that the Internal Audit Department andrelated departments conduct regular audits.

against each risk and an implementation plan, monitor
the progress status, and assess the achievement status.
Details deliberated at the Committee are discussed andreported to the Group Management Meeting and theBoard of Directors, depending on the importance.

— Sustainability —Risk assessment

Responsible management and support divisions recognize each risk associated with business execution,and implement risk reduction and prevention measures.

The purpose of the Sustainability Committee is to discuss
the Oji Group’s risks associated with sustainability suchas climate change risks, supply chain risks, and humanrights risks, and countermeasures, and to promote thegroup-wide efforts for sustainability. The Committee holds
its meetings twice a year, and develops a policy to work

Initiatives forEnvironmental Issues

Implementation ofrisk reduction
measures andprevention measures

When identifying risks, we categorize risks associated with all tangible and intangible assets we own into
those affecting the entire Oji Group and those affecting the business execution by Group companies anddivisions.

What the Oji Group
Aims For

Under the risk management structure developed and supervised by the Board of Directors, the Oji Group has establishedGroup Risk Management Regulations. It works to manage risks in the flow described below.

New Establishment of Sustainability Committee

History of the Oji Group’s
Value Creation

The Oji Group undertakes business activities with a strong sense of ethics set forth in the Oji Group Corporate Code of
Conduct and implements appropriate risk management practices. In response to the rapid expansion of the areas where
we operate businesses, we will reinforce our risk management structure globally to ensure business continuity and thesteady development of our businesses.

Promotion teams
Group companies

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72

Governance Strategy
Risk Management

Icons to the right represent materiality(for details, see P84).

Countermeasures against Major Risks
Type of Risk

Content of Risk

Main Countermeasures against Risks

Type of Risk

Content of Risk

Risks of long-term issues

Risks arising from execution of business

Pandemic

Risk of health damage to employees or temporary suspension of operations beingcaused by the global spreadof COVID-19

We have the Group Risk Management Regulations in place, and in the event of a serious incident to be addressed by the overall Group, we establish the Group emergency headquarters to confirm the safety of employees and check the damage
suffered.
We work to minimize the effect on our business activities by continuously reviewing abusiness continuity plan (BCP), and promoting digital transformation (DX) in manufacturing, marketing, administrative processing, and other activities.
While COVID-19 is still prevalent, we continue production with great caution to prevent the infection of COVID-19 in order to maintain the supply of products essential
to people’s lives.

Structuralchanges indemand arisingfrom developmentof innovation

Fluctuations indemandRisk of being a party to litigations, disputes or other legal
proceedings in the course ofbusiness

With respect to litigations and other actions filed against us, we prevent a disputefrom occurring by discussing with business partners and clarifying terms of contract.
We also have in place a system to deal with any litigation and other actions filed
against us in collaboration with a law firm.
If an event which may have a negative impact on reputation arises as a result of litigation and other actions, we promptly respond to the event, and publish appropriate information as necessary to maintain our reputation.

Risk of decline in demand for
products arising from domestic business fluctuations and acontinuing decline in population

We work to strengthen our business foundation that can tolerate market fluctuations
through thorough cost reduction, etc.
In the field of industrial materials, we work to differentiate us from other companies bypromoting total packaging and strengthening product development capabilities with
the integrated material and processing management, thereby curbing the effects onsales and securing cost competitiveness in case of any demand fluctuation.
In other business fields, as well, we work on the development of new products suchas paper products that support the shift to non-plastic materials and functional paperwith new properties in order to improve profitability.

Product liability

Risk of damages based on
product liability being claimed

We provide safe and secure products by establishing the Group Quality Control Regulations, building a quality control system, and implementing quality design and manufacturing in compliance with relevant laws and regulations and in accordance withvoluntary management values.
We work to prevent risks associated with product liability from occurring by establishing the Group Product Safety Management Regulations, and ensuring the department in charge of overseeing quality management across the Group provide
assistance in and conduct audit on the safety product management implemented byquality management divisions of Group companies.

Risk associated with procurement prices of raw materials
and fuels which are influenced
mainly by fluctuations in demand, countries’ changes totheir trade policies, and wars
Risk of sales prices of pulp
being influenced by global
market prices

We monitor markets in relation to the procurement of raw materials and fuels andstrive to maintain a variety of suppliers, and have established a department in chargeof the Group-wide procurement strategy to promote advantageous procurement.
We have the Oji Group Partnership Procurement Policy in place and confirm with allof our suppliers on safety and legality of raw materials. We work to ensure stable procurement through more environmentally- and socially-friendly procurement practices
and enhanced relationship with suppliers.
In terms of procurement of recovered paper, we strive to maintain recovered paper
recycling systems. We also strengthen coordination with relevant companies with theaim of ensuring stable recovered paper procurement.

Exchange rate
fluctuations

Risk of fluctuations in exchange rates in product sales,
raw material purchases andother transactions using various currencies

We monitor currency movements and impact of them on our results from time totime, and hedge risks using derivatives such as exchange forward contracts, currency option trading and currency swaps transactions, as necessary.
In Japan, we hedge a certain portion of exchange rate fluctuation risks by borrowing
and lending operating receivables denominated in foreign currency and operating
payables denominated in foreign currency within Group companies.

Risk of war, political or social
instability, decelerating economic growth, revisions tolaws, regulations, and tax systems, destabilizing financial
conditions, human rights issues, etc. taking place inoverseas markets where theGroup operates

We have established regional headquarters to gather information on the political,
economic, and social conditions of neighboring countries to prepare for and respondto all relevant risks before they emerge. We also diversify risks by having operations
in a wide range of countries.
To reduce risks, we enhance our ability to collect information and reduce the amountof investments through joint ventures operated with local leading companies.
With regard to human rights issues, we ensure that personnel are familiarized with
the Oji Group Human Rights Policy we established, and implement initiatives aimed
at ensuring respect for human rights.

Information
leakage

Risk of confidential information
being leaked due to willful
conduct including external cyber attacks or negligence

In the Group Information System Usage and Risk Management Regulations, we clarify the risk management operation system and organization and their roles and comprehensively set out matters to be complied with by information system users,
thereby managing risks across the Group.
With stricter rules on the system usage applying to highly confidential information, we
take measures to prevent unauthorized access, data theft, spoofing email and thelike.

Securities Reports (in Japanese)73

The Oji Group Integrated Report 2022

Financial andNon-financial Data

Overseasbusiness

Facing a shrinking market, we restructure domestic business production systems
and pursue rationalization such as through business collaboration with other companies in our industry. We also strive to secure cash flow through thorough cost reduction and efficient capital investment. We expand portfolio by investing the cash thus
obtained in domestic businesses where growth in demand is expected, and overseas
markets where economic development is expected, and appropriating it for the development of new material products, etc.
In order to enhance our medium- and long-term corporate value and achieve a sustainable development, we work to promote working style reforms and diversity to ensue active participation of various human resources.

Sustainability Strategy

Fluctuations in
global market
conditions

Risk of structural changes indemand arising primarily fromchanges in people’s lifestyles
and companies’ efforts for
digital transformation

Governance Strategy

Litigations andother actions

Risks associated with our management strategies— Profitability —We place adherence to compliance at the top of material management challenges inour business activities. We translated the Oji Group Corporate Code of Conduct andthe Oji Group Behavior Standard into the respective languages of overseas where we
operate to ensure that personnel not only in but also outside Japan are familiarizedwith and follow them. We also ensure that responsible divisions take initiative in providing training on relevant laws, regulations, and other rules to prevent violation ofthem.

Initiatives for Profitability
Improvement

Risk of not being able to comply with laws and regulationsof various countries, and theirrevisions and amendments— Green Innovation —Laws, regulations
and other rules

The Task Force on Climate-related Financial Disclosures (TCFD), see P29-30

Initiatives for ProductDevelopment

We have formulated a business continuity plan (BCP) for a business interruption risk
due to disasters, etc. and provide emergency education and conduct disaster drills
on a regular basis. In addition, we have established the Group Disaster Control Office
as a permanent organization, thereby establishing a system for obtaining the latest
information promptly. We also share information about the causes of and measuresagainst disasters across the Group, and work to minimize damage.
In connection with environmental accidents, we have set voluntary management values that are stricter than the environmental regulatory standards to prevent them.
With regard to safety, we have developed safety measures and safety operation manuals for production facilities and ensure that personnel are familiarized with them. We
have also built safety and health management structures and work to prevent occupational accidents.

— Sustainability —Risk of production bases andsupply chain in and outside
Japan being affected by natural disaster
Risk of fire, occupational accident, environmental accident
and other unexpected circumstance occurring

Initiatives forEnvironmental Issues

Occurrence ofdisasters, etc.

What the Oji Group
Aims For

Climate change

Main Countermeasures against Risks

History of the Oji Group’s
Value Creation

We categorize major risks that may have a material effect on our financial position, etc. into three groups: risks of longterm issues, risks associated with our management strategies, and risks arising from execution of business, and take thefollowing measures against them.

https://investor.ojiholdings.co.jp/ja/ir/library/securities.html
The Oji Group Integrated Report 2022

74

Governance Strategy

Governance Strategy

The Oji Group’s BCP

Independent Outside Directors’ Roundtable Discussion

Over the past year, the Board of Directors has continued to experience great changes, including launching a
new management structure and formulating a Long-term Vision and new Medium-term Management Plan. In
this section, our four Independent Outside Directors, including a newly appointed member, discuss the Oji
Group’s changes and prospects from an outside perspective.

*1 BCP is an abbreviation of Business Continuity Plan. Business Continuity Plan for emergencies such as disasters and pandemics.
*2 BCM is an abbreviation of Business Continuity Management. Comprehensive and integrated management for business continuity including formulation of abusiness continuity plan and its continuous improvement, i.e., introduction, operation and review.

What the Oji Group
Aims For

Building a Group Disaster Control System

an Essential Products Supplier that Supports Daily LifeThe Oji Group Integrated Report 2022

Financial andNon-financial Data

The Oji Group Integrated Report 2022

Sustainability Strategy

75

Drills for setting up evacuation centers with local governments

Nara In the past few years, the composition of our
Board of Directors has changed dramatically. When I was
appointed eight years ago, there were only two Independent Outside Directors. Today, that number has increased
to four, resulting in one-third of the total of 12 Directors
being Independent Outside Directors. We have always
been free to express our opinions. However, from theperspective of an Independent Outside Director, the environment feels like it has become even easier to express
ourselves.
In terms of diversity, as well, not only does our groupof Independent Outside Directors include two women—
Ms. Ai and Ms. Nagai—but it also consists of people ofdiverse backgrounds, in our areas of expertise, skills, andexperiences. The result is an increased breadth of ideologies and views and deepened discussions during meetings of the Board of Directors. Being able to come incontact with multilateral and macroscopic ways of looking at things through these discussions has been highly
educational. I also believe something which has contributed to the improvement of Oji’s corporate value.
Ogawa I began serving as an Independent Outside Director this fiscal year. My most recent experience in corporate management involved serving as chairman at afood processing company, where I focused on strengthening corporate governance and BCP implementation
amid the COVID-19 pandemic. At that company, as well,
an increase in the number of women serving as outside

directors greatly changed the atmosphere of the board of
directors.
Following the trend in recent years toward stakeholder
capitalism, what is expected of boards of directors andthe roles outside directors ought to fulfill are steadilychanging. What I personally would like to particularly
concentrate on is closely observing whether the Board of
Directors is engaging in a healthy discussion based on
due process. Corporations are like living things, requiringthat their board of directors maintain an accurate awareness of the business environment both within and outside
the company and make decisions from a practical pointof view. I intend to leverage my management experienceto provide advice as an Independent Outside Director
which contributes to increasing Oji’s corporate value.
Ai The addition of Mr. Ogawa has expanded the breadthof the Board of Directors’ skills and further improved thebalance of the composition of its members. We have different opinions on a single theme, reflecting our points ofview and ways of thinking, and making discussions evendeeper and higher in quality.
Nagai Having experienced my first year as an Independent Outside Director among this gathering of specialists
in diverse fields, I have always felt free to express my
opinions. Oji has a fully developed follow-up structure, forexample, providing information through briefings for Outside Officers. Participating as an observer in company
leader study sessions, accounting audit report briefings,
and Group Management Meetings is also a beneficial opportunity. The Board of Directors has maintained the flexibility to steadily incorporate outside opinions into its

Governance Strategy

Corrugated bed

Assessing Qualitative Improvements to
the Board of Directors— Profitability —The Oji Group carries on production activities to maintain social life worldwide by supplying corrugated containers
and folding carton products that support logistics services, hygiene materials such as tissue paper, toilet rolls andface masks as well as printing and communication paper that conveys information.

Hiromichi Ogawa was appointed
as a Director at Oji Holdings inJune 2022. He has abundant
experience as a corporate manager in the retail industry andfor a food company. Of particularnote, his accomplishments include strengthening governancestructures.

Initiatives for Profitability
Improvement

Local preparedness for natural disasters and support
In recent years, we strengthen not only measures within the Group but also collaboration with locals to prepare forincreasing natural disasters. Currently we have concluded a total of 152 disaster prevention agreements with local
governments across Japan. In the occurrence of a disaster, we provide corrugated beds and other various typesof corrugated products, and also jointly conduct a drill of setting up an evacuation center. We provide a wide variety of support including infection prevention measures.

Hiromichi Ogawa

Seiko Nagai was appointed as a
Director at Oji Holdings in June
2021. After working as a manager at a major airline company, shetook up a university position. As aprofessor in a foreign language
department, she is involved in education and research.

— Green Innovation —Exploration of infrastructure risks and implementation of measures
Production bases of the Oji Group in Japan explore risks of earthquakes, heavy rain, typhoon and other natural disasters, and implement measures against them, using local hazard maps to simulate the occurrence of disasters
such as floods and landslides. For example, we have strengthened waterproofing measures for electric rooms to
avoid stoppage of plant/mill operation over a long period of time. We also actively roll out useful measures to othercompanies in the Group.

Seiko Nagai

Sachiko Ai was appointed as a
Director at Oji Holdings in June
2020. Having worked for many
years at a major trust bank, her
wide-ranging business experience
also includes corporate sales andconsulting as well as corporate
planning and auditing.

Initiatives for ProductDevelopment

Locating production bases to diversify risks and flexible raw material procurement
Oji Group companies have production bases nationwide ranging from Hokkaido to Kyushu. While proceeding withconsolidating production bases to enhance competitiveness, we consider risk diversification to continue business.
In addition, to continue production, we procure raw materials from several companies in principle and ensure flexible procurements such as diversified sources.

Sachiko Ai

Michihiro Nara was appointed as a
Director at Oji Holdings in June
2014. As an attorney-at-law, he
has high-level expertise and experience in the civil and commercial
affairs. He is serving concurrently
as an outside director at othercompanies as well.

— Sustainability —BCP Initiatives

Michihiro Nara

Initiatives forEnvironmental Issues

We have established the Group Disaster Control Office as a permanent organization to prepare for disasters suchas fire, earthquake, storm, and flood. We have formulated rules on the reporting of disaster and accident information, establishing a system enabling us to obtain the latest information promptly. We also share information on disasters that occurred within the Group promptly to work on recurrence prevention measures. By holding a regular
Disaster Prevention Committee, and conducting a large-scale safety confirmation drill using a safety confirmation
system and disaster prevention drill at each workplace, we work to raise employees’ awareness of disaster prevention and strengthen disaster prevention measures.

History of the Oji Group’s
Value Creation

At the Oji Group, we have formulated a BCP*1 for each COMPANY to respond to an emergency when a risk associated with business execution arises. Reviewing it as necessary, we also engage in BCM*2. In the event of a serious incident to be addressed by the overall Group, we establish the Group Emergency Headquarters to confirm the safetyof employees, check the damage suffered, and take prompt measures to continue supplying products to ourcustomers.

The Roles of Independent Outside Directors in
Nomination Functions and Plan Formulation76Governance Strategy
Independent Outside Directors’ Roundtable Discussion

The New Medium-term Management Planfrom an Outside Perspective— Profitability —Governance Strategy
Sustainability Strategy
Financial andNon-financial Data

The Oji Group Integrated Report 2022

Initiatives for Profitability
Improvementwith regard to the “expansion of overseas business” and“promotion of innovation.” We, Independent Outside Directors, recommended that we look back on the past
three years of activities about each theme and reflect theinsights thus gleaned in the next plan’s new policies.
Accordingly, “green innovation” was clearly added to
the new Medium-term Management Plan, and I feel anenthusiasm for a new Oji Group in this action.
Ai Definitely. The Group’s Basic Policy in the new Medium-term Management Plan is “Growth and Evolution,”and under this, “Initiatives for Environmental Issues” is a
new and explicit addition. During discussions when formulating the plan, we indicated that, while continuing to
expand initiatives to contribute to the environment, proactively sharing this information with stakeholders could
potentially deepen their understanding of Oji.
Alongside the announcement of Oji’s Long-term Visionand the new Medium-term Management Plan, “Grow andmanage the sustainable forest, develop and deliver the
products from renewable forest and Oji will bring thisworld a brighter future filled with hope” was explicitly stated as Oji’s Purpose. I perceived this as a reflection of theopinions of us Independent Outside Directors.
Nagai At the company I worked at previously, I experienced rebuilding after a business failure. Through thisprocess, I came to recognize the importance of changing
employee awareness, and learned hands-on that making
sure everyone has the same goal leads to businessgrowth. What I would like to see with Oji’s new Purposeis that it be made even easier to understand so that itreaches every employee and becomes something which
unites the hearts of all of Oji’s members.
The path forward will not be smooth in a business environment in which the future continues to be opaque.
Against this backdrop, as a first step to achieving the— Green Innovation —Nara As Ms. Ai mentioned a moment ago, a special
session outside the normal briefings for Outside Officers
was held in the formulation of the new Medium-termManagement Plan. At the session, we Independent Outside Directors also spoke extensively of our opinions fromour own individual perspectives.
Ai Unlike in the past, in the new Medium-term Management Plan, in place of compiling a list of numerical targets
provided by each COMPANY and department, Oji set
long-term goals for 2030 in the form of its Long-term Vision, then backcast from there to formulate the plan. Accordingly, a good deal of time was necessary forinvestigation and consideration. The fact that Oji could
engage in sufficient discussion right up until the plan’spublication is praiseworthy.
Nagai Discussion of the new Medium-term Management Plan had to be predicated on evaluating of the previous three-year Medium-term Management Plan. I wasonly involved as an Independent Outside Director for the
final fiscal year of the previous plan’s three years. However, I believe that the Oji Group’s achievement of record-high profits amid such unprecedented externalchanges as the COVID-19 pandemic, Russia’s invasionof Ukraine, and soaring raw materials prices was nothing
less than a result of the efforts of all of the Group’s employees combining their strength to work toward thesame goals.
Ai Although a portion of the numerical management targets for the previous Medium-term Management Plan
were not achieved, the Oji Group recorded satisfactory
results, with consolidated operating profit being a record-high 120.0 billion yen. Progress was seen in each of
the “profitability improvement of domestic business,” “expansion of overseas business,” and “promotion of innovation” raised by our Basic Policies. There remain
ongoing challenges, however, and these policies will be“evolved” in the new Medium-term Management Plan.
Nara In part due to the effects of the COVID-19 pandemic, it is difficult to say that sufficient progress was madeInitiatives for ProductDevelopment

The Oji Group Integrated Report 2022

— Sustainability —77

Initiatives forEnvironmental Issues

Nara Oji has established a Nomination Committee and aCompensation Committee to serve as advisory bodies tothe Board of Directors. For both committees, the Chairman, President, and Independent Outside Directors are
all members, with the President serving as Committee
Chair. To ensure transparency in appointment processes,
discussions regarding appointment are conducted by the
Nomination Committee, with a majority of its members
being Independent Outside Directors.
Ai In the most recent appointment process, our participation involved providing opinions from an outside

Ai As an Independent Outside Director, I believe that one
can effectively contribute to appointment selections evenin large-scale companies if the axes of evaluation havebeen made clear and if one is aware of the accomplishments of the human resources who will rise to the executive level as well as the process through which they were
cultivated.
Leveraging human capital is extremely important to increase corporate value and grow sustainably. Based on
this, in addition to the nomination of the executive ranks,
I also think it is necessary to engage in wide-ranging discussion regarding the composition of the entire company’s human resources portfolio in the medium- to longterm; the cultivation of human resources, including thetransmission of skills; and the consequent human resources system, compensation structure, evaluation system, and training system.

What the Oji Group
Aims ForThe Nomination Functions the Oji Group
Needs

perspective on proposals from the executive side, andsummarizing the findings as the final recommendations
by the Nomination Committee. We approved of the recommended human resources, including new President
Isono without dissension, thus playing our part in Oji’s
appointments.
Nara I believe it is actually very difficult to take the leadin selecting corporate managers from an outside perspective, as we Independent Outside Directors normally
have less contact with candidates during our regular affairs. At the same time, when a new Director is nominated, they are naturally presented to us as a potential future
candidate for President. From that point forward, wemonitor this candidate from the perspective of whether
they have the qualities and character required of a corporate manager and use this as a basis for our decision at
the time of appointment, while keeping a close eye on
the candidate’s comments and actions.
To improve this process further, we have sought more
opportunities for Independent Outside Directors to contact
the Corporate Officers who are future Director candidates,
as well as the management members who are candidates
for becoming Corporate Officers. Regarding this point, inrecent years, Oji has created opportunities for communication in a variety of forms. For example, we have engaged
in discussions directly with Corporate Officers and management members at briefings for Outside Officers. It has
also become possible for us to attend meetings of the Audit & Supervisory Board, and to connect with Group companies’ the management and executive teams. It is
impossible to select personnel without knowing and understanding their capabilities and character, which is why I
think this kind of internal communication is also an important role of Nomination Committee members.
Ogawa Even in the best of circumstances, the amountof information available to an Independent Outside Director is limited. Against this backdrop, taking responsibility
and making a fair decision is extremely difficult. I served
as committee chair in my previous position on a nomination advisory committee. The majority of the committee
was comprised of outside directors, and I went to great
pains to share as much relevant information as possible
with the members who were outside directors. In the Oji
Group, I am now in the opposite position, so I would liketo see a variety of measures taken to make it possible for
us to obtain appropriate materials for decision-making interms of quality and quantity.
Nagai In the company that I was involved in, director
candidates were interviewed by outside directors andasked about management issues and how they would
solve them. In this way, outside directors could understand each candidate’s views and opinions as well as
their management perspective. The feedback was provided to top management and served as a part of thematerials used to make appointment decisions. In Oji’scase, the Group’s scale is large and it also possesses avast amount of human resources, making doing thesame kind of thing difficult. However, I think we should
proactively engage in dialogue with the next generation of
the executive team going forward.

History of the Oji Group’s
Value Creation

operations, which I believe has led to more active
discussions.
Ai Hearing directly from COMPANY Presidents and leaders about their businesses and participating in meetings
with outside auditors is also beneficial to Board of Directors discussions. In addition, although we will discuss thisin a moment, in the formulation of the new Medium-termManagement Plan, a separate, special session outside of
the normal briefings for Outside Officers was established,which was extremely valuable and enabled us to discuss
it from a medium- to long-term perspective.
Nara We have continued to face restrictions over the
past two years due to the COVID-19 pandemic, but Oji
has resumed visits to manufacturing sites in Japan suchas the Tomakomai Mill and Kasugai Mill. As an Independent Outside Director, I’m looking forward to visits tooverseas sites resuming in the future. Seeing a location
with your own eyes really is a prerequisite to management discussions.

78Governance Strategy
Independent Outside Directors’ Roundtable Discussion

Hidero Chimori
More Diverse Board of Directors Members and More Vigorous Discussion

Financial andNon-financial Data

The Oji Group Integrated Report 2022

Sustainability Strategy

As I stated in the beginning, the Board of Directors of Oji Holdings Corporation has become much more diverse. It will still
be some time before that diversity of opinion is reflected in Oji Holding’s management and leads to improved corporate
value. In that sense, this can be seen as there being even greater room for the Oji Group’s corporate governance to evolveand for its corporate value to improve in the medium- to long term.
As an Independent Outside Audit & Supervisory Board Member, I will leverage my expertise as an attorney-at-law froman outside perspective, strive to monitor in particular governance functions and actively state my opinion at Board of Directors and other meetings whenever I have insights from viewpoints such as risk management and compliance. Speaking of governance, as I discussed above, the Medium-term Management Plan starting in this fiscal year was an important
discussion point during meetings of the Board of Directors in the previous fiscal year. Moving forward, I intend to continue
to focus on whether meetings of the Board of Directors are spaces for the appropriate discussion, from a medium- tolong-term perspective, of such matters as structural reform, capital investment planning, and R&D; and whether these
discussions are leading to appropriate action.

Governance Strategy

Challenges to Further Improving Corporate Value and the Initiatives as Independent Outside Audit & Supervisory Board Members— Profitability —Amid these changes to the management environment, as concerns Audit & Supervisory Board Members fulfilling their duties, it came into question whether the three-pronged auditing system of audits by accounting auditors, audits by internal
audit divisions, and audits by Audit & Supervisory Board Members was functioning properly. There is a particular issue
with the difference in the thoroughness of audits by the internal auditing divisions depending on the company, and its intra-group coordination is of utmost concern. The Oji Group, however, has been proactively working to fortify this area.
Confirmation is being conducted with internal auditing divisions primarily through periodic exchanges of opinions regarding
developing an internal control system for accounting, audits of operations, business audits of extensive Group companies,and compliance. Concerning audits by Audit & Supervisory Board Members, the system will now focus more on the important business and governance audits of Group companies, and emphasis will be placed on the supervision of the
management of Oji Holdings Corporation, most important of all.

Initiatives for Profitability
Improvement

The Oji Group’s Audit Structure and Audits by Audit & Supervisory Board Members— Green Innovation —I was appointed as an Independent Outside Audit & Supervisory Board Member at the General Meeting of Shareholders inJune last year. At the same time, one woman each was appointed as an Independent Outside Audit & Supervisory Board
Member and as an Independent Outside Director. The result was that there were now 12 Directors who made up themembership of Oji Holdings Corporation’s Board of Directors, four of whom are Independent Outside Directors. We now
have four female officers including Audit & Supervisory Board Members, thus making the membership of the Board of Directors even more diverse.
The increase in the number of Outside Officers and female members was not simply a matter of filling out the numbers
following the revision to the Corporate Governance Code. Rather, each member vigorously expresses his or her opinion,
backed by their own individual career histories, specialties, and values, among other attributes. Without a doubt, discussions at meetings of the Board of Directors have become spaces for diverse opinions, meeting the expectations set forthin the Corporate Governance Code. These discussions can also be seen to have been outfitted with a structure which
contributes to increased corporate value and the effectiveness of management supervision. To give an example, in theprevious fiscal year, the Medium-term Management Plan starting in the current fiscal year was discussed as one of themost important themes at meetings of the Board of Directors, and the fact that opinions of Outside Officers were also reflected in the plan is praiseworthy.

Initiatives for ProductDevelopment

The Oji Group Integrated Report 2022

Independent Outside Audit &Supervisory Board Member— Sustainability —79

Evolving Governance Structure andAudit & Supervisory Board Members(from the Perspective of an
Independent Outside Audit &Supervisory Board Member)

Initiatives forEnvironmental Issues

Ogawa The concept of stakeholder capitalism I mentioned at the beginning is starting to permeate the general consciousness, but I believe the Oji Group could besaid to be part of the vanguard of this trend. Oji’s Founding Spirit of “unity of economy and morality” is a sublime
precept that aligns with the modern-day SDGs, and Oji
has inherited a company attitude of aiming for harmony
and mutual prosperity with all of its stakeholders.
I perceive the new Medium-term Management Plan,as well, to be a strategy of firmly focusing on the longterm goals of Oji’s Long-term Vision while at the sametime carefully balancing economic, environmental, andsocietal value under the Group’s Basic Policy of “Growthand Evolution.” I hope that all of Oji’s stakeholders willappreciate the value of this Group’s Basic Policy.

Message from an Independent Outside
Audit & Supervisory Board Member

What the Oji Group
Aims ForA Company Advancing Together with Its
Stakeholders

History of the Oji Group’s
Value Creation

aggressive goal of consolidated net sales of 2.5 trillion
yen or more by 2030 over the next three years, I intend
to continue to seek to secure the safety that is a condition of stable business operation. At the same time, I will
focus on the permeation of Oji’s Purpose in real workplaces and be monitoring Oji’s administration.
Ai In addition to net sales of 2.5 trillion yen or more by
2030, Oji has also set various goals and targets as partof its Environmental Action Program 2030. The next three
years will be an important period in establishing a foundation for their achievement. As an Independent Outside
Director, I intend to keep a firm awareness of their progress and, about recognized challenges, monitor for issues that are difficult to detect from within the company
as well as for both excess and insufficient analysis of their
execution, and provide effective recommendations.

Nagai The Oji Group is one of the greatest holders offorest resources in Japan. Aiming for net-zero carbon in
2050, the Group established its Environmental Action
Program 2030 to serve as a milestone toward that target.
The entire strength of the Group will be marshaled to expand net sales to 2.5 trillion yen and, at the same time,
contribute to the resolution of environmental issues. As amember of the Oji Group, I too, am going to do my part,and in turn I ask all of our stakeholders for their continued
support.
Ai Under the slogan “Beyond the Boundaries,” the next
three years will be a period in which the Oji Group aims
to continue the growth achieved in the previous Medium-term Management Plan while at the same time aiming for further evolution. The environmental challenges weare facing, such as climate change, are wide-ranging,and the need for a recycling-oriented society is growing
ever stronger. Against this backdrop, the Oji Group willcontribute even further to society while also expanding its
own corporate value by leveraging and developing, inmany directions, the expertise in forest resources it has
cultivated throughout its business history.
Nara Oji possesses an abundance of forest and water
resources and is equipped with the conditions necessary
for it to survive as a company. It creates sustainable value
for the future based on its Management Philosophy of“Harmony with Nature and Society.” Oji recognizes thatthese forest and water resources are not just part of its
own corporate value but also public resources which
form the basis of society and nations. With “green innovation” as a Basic Policy of the new Medium-term Mana g e m e n t P l a n , I e n c o u r a g e y o u t o w a t c h O j i ’s
developments going forward.

80

Sustainability Strategy

Sustainable Business Model
History of the Oji Group’s
Value Creation

Sustainable Business Model “Resource Circulation
throughout the Value Chain”
Paper manufacturing, which is the foundation of the Oji Group, is supported by three types of recycling: “forest
recycling” to practice sustainable forest management, “water recycling” to tackle the reduction of water intake
and purification of wastewater and “paper recycling” to recycle recovered paper. We are working to deploy thissustainable business model globally and enable our businesses to contribute to building a sustainable society.

What the Oji Group
Aims For

Cascading use of forest resources

Procurement

Timberoffcuts
Woodchips

Pulp

Paper, paperboard,
new materials

Black liquor

Unused trees

Waste(Effective resource
utilization)(Sustainable forest
management)

recycling(Effective resource
utilization)

Sales,
management,
logistics

Net-zero carbon
Harmony with natureand society

Governance Strategy

CO2 absorption
and fixation by
forests

Water
treatment
business

Paper
Consumption

About 60% of the raw material of the paper
is recovered paper and about 40% is wood.
We are working on the promotion of use ofrecovered paper by collecting and utilizing
various types of recovered paper while maintaining its recycling system.

Cellulose

Hemicellulose

Various wood-derived materials
Wood-derived biomass plastics
Cellulose nanofiber (CNF)• Sulfated hemicellulose, etc.
••

Aiming for Further Development of the Sustainable Business Model
Toward the realization of a decarbonized society, renewable forest resources havegathered significant attention. Alongside the conventional use of wood resources
as raw materials for paper manufacturing, the Oji Group is accelerating their use
in fields outside of papermaking. Specifically, we are expanding our biomass
power generation business, which utilizes wood chips as a primary fuel, acrossJapan. We are proactively making use of unused trees such as forest residues, forwhich few applications had previously been developed. In addition, we are accelerating green innovations for the future, including developing wood-derived biomass plastics, promising replacements for petroleum-derived plastics, cellulose
nanofiber (CNF), and wood-derived pharmaceutical products.

The Oji Group Integrated Report 2022

Financial andNon-financial Data

Development of new materials
derived from wood fiber

Sustainability Strategy

Paper and pulp manufacturing requires alarge amount of water. We reduce water intake by treating used water and reusing it in
the manufacturing process. We also workon purification of wastewater and reductionof environment impact.

— Profitability —

Used
paper
recoveryEnvironmental
Vision 2050

Initiatives for Profitability
Improvement

recycling

recycling

Products— Green Innovation —

Wood
pulp
Recycled
pulp

Pulp
manufacturing

Water

ForestThe Oji Group Integrated Report 2022

(Consumption)

Initiatives for ProductDevelopment(Renewable energy)

81

Sales

— Sustainability —Manufacturing

Fuel
Sawmill residue

Biomass power generation

Under the concept of “those who use trees
have the responsibility to plant trees,” we areworking on sustainable forest managementby planting, cultivating and utilizing trees andplanting them again while giving due consideration to the local ecosystem in Japan andoverseas to create abundant forests.

Manufacturing

Initiatives forEnvironmental Issues

Sustainable
forestresources

Lumberproduction82Sustainability Strategy

Core Competencies and Material Issues
Material Issues

The Oji Group possesses Oji Forests spanning 573,000 ha domestically and overseas. As the Group engages in a cycle of cultivating forest resources, utilizing them, and cultivating them again, we are developing a wide range of businesses without regard for business domain. Rooted in our core competencies centered on forest resources, we will
aim to develop business and contribute to realizing a sustainable society.

The Oji Group has continuously been working on enhancing corporate value in the medium- and long-term by accurately responding to ever-changing social trends and addressing the needs of customers and society. To develop thesustainable business model that forms the basis of these efforts, material issues have been identified in the following
processes.
We have also set qualitative targets and KPIs for each material issue (P85-86).

1

We extracted issues comprehensively from global social issues, disclosed sustainable-related information, the assessment made by ESG assessment organizations, important matters recognized by the Group (forecasting perspective), our goals(backcasting perspective) and dialogue with stakeholders.

We are proactively developing our businesses on a global level,
including our packaging business, which engages in the integrated manufacturing of folding cartons and corrugated containers
from base paper; as well as our household paper, thermal paper,
pulp, and other businesses. We are expanding our businesses in
response to continuously growing overseas market needs.

3

Assessment andanalysis

We assessed each issue based on both social importance and business importance. The
issues were narrowed down and sorted out in reference to opinions from externalorganizations.

4

Validity assessment
and approval

We verified the validity of the identified material issues and obtained approval at the
ESG Promotion Project and Management Meeting. The necessity of reviewing material
issues is discussed at the Sustainability Committee every year as we need to consider
such issues as changes in the social environment and newly emerged issues.

Step

Sustainable Forest Management
Step

Material Issues and Reason for Identification
Material Issues

The Oji Group Integrated Report 2022

Sustainable forest
management(forest recycling)

To secure a stable supply of raw materials and, at the same time, maintain forests’ functions in areas such as conservation of biodiversity and CO2 absorption, it is necessary that we engage inthe sustainable management of the vast forests we own in Japan and overseas.

Responsible raw
materials procurement

The Oji Group’s procurement of raw materials is supported by numerous suppliers in Japan and overseas. Working to improve human rights, labor, environmental, and other issues at all of our suppliers,and fulfilling our social responsibilities are essential to the continuation of our business activities.

Stable supply of safe
and secure products

As a manufacturer, the core of our business involves strengthening relationships of trust whilebuilding a system which provides services and quality which customers in a variety of fields canuse with peace of mind.

Aiming to create new value, we are developing new materials,
including cellulose nanofiber (CNF), a promising material for numerous fields; wood-derived biomass plastics; and wood-derived pharmaceutical products using hemicellulose.

Reduction ofenvironmental burdens

We have a responsibility to promote the prevention of environmental pollution, and to contribute to
the conservation of local environments, we establish voluntary management standards which areeven stricter than existing laws and regulations regarding wastewater and emissions.

Effective resource
utilization

Application of Fundamental Paper
Manufacturing Technologies(paper and water recycling)

It is important that we work to protect resources and reduce waste by maintaining our recovered paper recycling systems through the procurement of recovered paper at fair prices, promoting the use of recovered
paper, and promoting the effective use of waste and water resources in our manufacturing processes.

Respect for humanrightsTo achieve an even greater level of globalization going forward, it is necessary that not only our
employees but all of our suppliers share our beliefs regarding respect for human rights, and implement concrete initiatives which will help prevent human rights issues.

Ensuring workplacesafety and health

Ensuring employee safety and building a work environment where people can work with a senseof security is the cornerstone of our continued existence as a corporation. Also, responding rapidly to disasters, infectious diseases, and other risks is essential to ensuring safety and health.

Inclusion & diversity

As a global enterprise, it is essential to have a diverse array of human resources that flourishes regardless of gender, age, disability, or nationality, and to be receptive to a variety of values andideas to enhance corporate competitiveness and further development.

We promote recovered paper recycling. The recovered paper
makes up about 60% the raw material of the paper. We also
thoroughly circulate and reuse the water that is essential to paper manufacturing in our production processes, and create
systems for reducing the amount of water used and purifying
wastewater in a sophisticated manner.

Development of New Materials
Derived from Wood Fiber

Utilizing the fundamental technologies we have cultivated in
our paper manufacturing business, we aim to expand our businesses in various fields which will help reduce our environmental impact. This includes developing our renewable energy
business with a focus on hydroelectric power generation andwood biomass power generation, industrial water production
and industrial wastewater treatment businesses.

The Oji Group Integrated Report 2022

Financial andNon-financial Data

83

5

Mitigation and adaptation
to climate change

Utilization of Renewable Resources

Sustainability Strategy

The Oji Group’s
Sustainable
ForestResources

4

Reason for Identification

As responding to the progression of climate change becomes an urgent issue, it is essential to reduce GHG emissions in the production and logistics processes, and extensively ramp up CO2 absorption via the expansion of company-owned forests and development of fast-growing trees.

Governance Strategy

3— Profitability —Giving due consideration to environmental conservation, theGroup possesses production forests primarily for producing
wood spanning a total of 432,000 ha, with 176,000 ha domestically and 256,000 ha overseas, as well as conservation forests
spanning 141,000 ha, with 12,000 ha domestically and 129,000
ha overseas. Implementing sustainable forest management,
which is environmentally, socially and economically conscious,
forms the basis of our businesses.

Initiatives for Profitability
Improvement

2

Extraction of possible
issuesStep— Green Innovation —2

Global Expansion of Manufacturingthat Supports Lives and Industry

Initiatives for ProductDevelopment

We identified five core competencies to support our business development centered on forest resources.

— Sustainability —Identification of corecompetencies

Initiatives forEnvironmental Issues

1

Step

What the Oji Group
Aims For

Process for Identifying Material Issues

History of the Oji Group’s
Value Creation

Core Competencies

84

Sustainability Strategy

Material Issues and KPI
Qualitative targets
Reduce GHG emissions

Japan 100%, Overseas 92%

Conduct sustainability surveys on all main
suppliers*4(Survey period: FY2020 - FY2022.
Follow-up surveys to be conducted
later.)
100%

Achieve full traceability based on the Wood
Raw Material Procurement Guidelines
Promote purification of wastewaterand exhaust gases

•

3.0%
8.3%

109,000 kt-CO2
54.7%
1.8% reduction(Five-year average from 2017 to
2021)

256,000 ha(Conservation forests 129,000 ha)

Improve the recovered paper
utilization ratio
Reduce water intake intensity

Recovered paper utilization ratio*6 (Japan):
At least 70%
Water intake intensity
Reduction of at least 6% compared to
FY2018

67.1%

Continue zero product liability
accidents

Zero product liability accidents (each fiscal
year)

Zero accidents (continued since1998)

Increase effective waste utilization
ratios

10.5% reduction
Japan 99.1%, Overseas 89.1%+1.8%

Stable supply of safe
and secure products
Percentage of target people who get
education and training in human rights:
100%

Respect for humanrightsRaise the percentage of female
managers
Raise the employment rate ofpeople with disabilities

Percentage of female managers*8: 5.5%
(Japan, end of March 2025)
Employment rate of people with disabilities*8:
2.3% (Japan, June 2023)

Zero accidents (from January 1 to
December 31, 2021)
0.97 (from January 1 to December
31, 2021)

3.7% (16 companies in Japan)
Six applicable Group companies inJapan*8: 2.35%
Group companies in Japan*8: 2.10%(June 2022)*1 Aggregation period: Unless otherwise specified, from April 2021 to March 2022 or as of March 31, 2022. Boundary of data aggregation: Unless otherwise specified, Japanese and overseas consolidated companies*2 The actual carbon stocks in living biomass (CO2 tons)
Production forest: Actual merchantable volume at the end of FY2021 x Biomass expansion coefficient x (1 + underground / above-ground ratio) x Wood density x Carbon ratio x CO2 conversion
coefficient.
Conservation forest: Remaining area at the end of FY2021 x above-ground biomass of natural forest x (1 + underground / above-ground ratio) x carbon ratio x CO2 conversion coefficient.
*3 Forest certification acquisition rate: [Overseas] Area ratio in company-owned production forests, [Japan] Area ratio in company-owned forests excluding shared forests*4 Suppliers in top 75% of transaction amount85

The Oji Group Integrated Report 2022

Conservation of biodiversity andecosystem
Job creation
Employment, education, and medical
supportPromote CSR procurement, taking into consideration
the environment and society following the Oji Group
Partnership Procurement Policy and the Wood Raw
Material Procurement Guidelines

Forms of responsible production and consumption
Protection of the rights of workers andreduction of environmental impact
throughout the entire supply chain

Set voluntary management values that are stricter thanthe environmental regulatory standards
Purify wastewater and save emissions of chemical
substances in exhaust gases
Reduce and effectively use waste
Develop eco-friendly products and biodegradable
materials

Safety and health
Reduction of air and water pollution

Paper recycling (improve the recovered paper utilization
ratio)
Reduce water intake and improve water recycling
Expand the water treatment business overseas

Mitigation of climate change
Reduction of waste
Contribution to the solution of the water
shortage issue
Safe water supply

Stably supply own products
Ensure safe quality design and management incompliance with relevant laws and regulations andstricter voluntary management values
Provide customers with information on safety of raw
materials (chemicals, materials)
Supply of FSCTM certified products (FSC™ C014119, etc.)

Supply of safe and secure products
Reduction of environmental burdens
Dissemination of eco-friendly technologies to developing countries

Formulate and implement the Oji Group Corporate
Code of Conduct, the Oji Group Behavior Standard, andthe Oji Group Human Rights Policy
Perform internal audits and implement the whistleblowing system
Raise awareness of compliance and human rights
through in-house training
Assess risks associated with suppliers’ respect forhuman rights
Implement human rights due diligence

Respect for human rights

Establish safety and health management structuresand promote activities aimed for safety and healthThoroughly ensure safety in the handling of machines
and equipment and in other operations
Promote safety education (introduce VR risk experienceeducation, etc.)
Promote physical and mental well-being of employees
Create comfortable work environments
Respond to infectious diseases including COVID-19

Safety and health

Implement human resource strategies and develop
human resources
Promote working style reforms
Promote diversity

Active participation of diverse humanresources
Realization of innovation
Improvement in productivity

9.4,9.5

12.2

13.1,13.2
13.3

6.6

8.7

14.2

15.1,15.2
15.3,15.4
15.5,15.c

8.7

12.1,12.4
12.6

15.1,15.2

3.9

6.1,6.3,6.4

11.6

14.1,14.2
14.3

6.4,6.5

12.4,12.5
12.6

14.1

15.1,15.2
15.3,15.4
15.5,15.c

9.4,9.b

12.4,12.6

17.7

5.1,5.4
5.5,5.c

8.5,8.7
8.8

10.2,10.3
10.4

P25~30

P31~34

P87~88Refer tothewebsite17.7,17.8

P89~92

P88

P93

P97~988.8

P94~96
5.1,5.4
5.5,5.c

8.2,8.5
8.8

10.2,10.3*5 Effective waste utilization ratio = (Amount of waste generated − Amount of landfill waste) ÷ Amount of waste generated × 100*6 Recovered paper utilization ratio = Volume of recovered paper consumed ÷ Total volume of fiber raw materials consumed (total consumption of recovered paper, wood pulp, and other fiber
raw materials)*7 Serious accidents: The Oji Group considers accidents of Class 3 or higher as per the Appended Table of the Enforcement Regulation of the Workers’ Accident Compensation Insurance Act tobe serious accidents.
*8 For the calculation method, see P107.

The Oji Group Integrated Report 2022

Financial andNon-financial Data

Inclusion & diversity

Achieve zero fatal and serious work-related
accidents*7 (each fiscal year)
Lost time injury frequency rate*8: 50%
reduction compared to FY2018 (0.89)

Forest management based on the “Sustainable Forest
Management Policy”
Maintain and expand the multi-functions of forests
Sustainable forest management such as promotion offorest plantation and conservation of company-owned
forests

7.2,7.3
7.aSustainability Strategy

Ensuring workplacesafety and healthAchieve zero fatal and serious
work-related accidents
Reduce lost time injury frequency
rate
Reinforce safety management
systems, safety risk management
systems, and safety education

Attendance for education andtraining in human rights as part oftarget training: 97.9% (2,640
participants)

Mitigation of climate change
Increase in the usage of renewableenergyImprove in energy efficiency
Enhancement of eco-friendly technologies

Governance Strategy

Provide education and training inhuman rights

Absorb and fix CO2 through sustainable forest management
Expanded use of non-fossil fuels and biomass fuels asalternatives to coal
Develop biomass power generation business
Develop eco-friendly products— Profitability —BOD: 5.9% reduction, COD: +8.3%,
SS: 12.9% reduction

Reduce GHG emissions through improving production
efficiency, saving energy, and utilizing renewable fueland waste fuelInitiatives for Profitability
Improvement

Reduce emission intensity for substances ofenvironmental concern in wastewater by
15% from FY2018
Reduce SOx emissions intensity in exhaustgases by 15% from FY2018
Improve effective waste utilization ratios*5
Japan at least 99%, Overseas at least 95%

Reference— Green Innovation —Effective resource
utilization(paper and water
recycling)

Manage the supply chain
thoroughly

Increase the rate of overseas forest
certification acquisition*3 (maintain thedomestic rate at 100%)
400,000 ha of overseas forest plantations•

Corresponding SDGs

Initiatives for ProductDevelopment

Reduction ofenvironmental
burdens(air, water and waste)

Maintain and expand overseas
forest plantation

11.3% reduction

Value provided to society— Sustainability —Responsible raw
materials
procurement

Increase forest certificationacquisition rate

Reduce GHG emissions by at least 70%
compared to FY2018• GHG emissions reduction: 20%• Net increment in carbon stocks by forests:
50%
The actual carbon stocks in living biomass*2
expanded to at least 170,000 kt-CO2(calculated value)
Renewable energy usage rate of at least
60% through reduction of coal consumption
Energy consumption intensity at least 1%
per year for the 5-year average

Major initiatives

Initiatives forEnvironmental Issues

Sustainable forest
management(forest recycling)

Maintain and expand CO2
absorption and fixation throughforest conservation
Increase the usage of renewableenergyImprove energy efficiency

Current value*1(Unless otherwise specified, for FY2030)

What the Oji Group
Aims For

Mitigation andadaptation to climatechangeKey performance indicators (KPIs)

History of the Oji Group’s
Value Creation

Material issues

86Sustainability Strategy

Responsible Raw Materials Procurement
8.7

12.1,12.4
12.6

15.1,15.2

The Oji Group Partnership Procurement Policy (revised in 2018*)
https://ojiholdings.disclosure.site/en/themes/187/

The number of overseas suppliers has rapidly increased as we have expanded our businesses overseas. Under such circumstances, we have confirmed the status of operation of the Oji Group Partnership Procurement Policy and the Wood
Raw Material Procurement Guidelines. We have also conducted sustainability surveys for main suppliers since FY2020.

Awareness of laws

We extracted the following (1) to (3) for issues related tohuman rights.
(1) Lack of awareness of basic stances and principles advocated globally, Japanese and foreign humanrights-related laws and regulations , social and industrial norms, etc.
(2) Lack of human rights-related policies or guidelines.
(3) Lack of human rights-related initiatives.
We will request suppliers that fall under (1) to (3) to take
into active consideration (take actions for) the protectionof human rights, the rights of laborers, etc. based on the
Oji Group Partnership Procurement Policy through feedback of the survey results. We will also implement Human
Rights Due Diligence step by step for main suppliers.

Lacking awareness
Having awareness but not confirming the legal violation
Having awareness and confirming the legal violation
Unknown

7%

25%

0

20

Policies and guidelines
Lacking policies or guidelines
Having either or both of policies and guidelines
Having them and reviewing them appropriately
Unknown

19%

40

60

5%
80

100

Achieved Traceability at Wood Raw Material Suppliers (FY2021)
The Oji Group specifies items to confirm the origin ofwood, forest management methods, illegally loggedwood, mixture of wood with high conservation values
and human rights violations based on the Wood Raw
Material Procurement Guidelines, and procures only raw
materials that are produced in properly managed forests.
It is possible to trace the source of wood throughout theentire process from the forests of origin, woodchip mill topaper manufacturing and pulp mill.

In FY2021, the Group procured 4,429 kBDT (bone drytons) of woodchips in Japan and overseas and 162 kADT
(air dry tons) of market pulp, obtained traceability reports
from all the suppliers and confirmed with a third-party organization that the procurement was in accordance with
the Wood Raw Material Procurement Guidelines.

— Profitability —Woodchip mill

Wood Raw Material Procurement Guidelines (revised in 2015)
https://ojiholdings.disclosure.site/en/themes/188/

75

Recovered
paper

(2)

Pulp

50

(3) Labor

25(4) Environment
(7)

(3)

0

Woodchips
Chemicals(6) Basic stance for the supply chain(7) Coexistence with local communities

Fuels
(4)

(6)

(5)

All

*1 FM certification: Confirmation of forest management*2 CoC certification: Confirmation of management on processing and distribution of produced wood

CoC
Certification

Forest Resources

Recovered
paper

Mill
(intermediate products)
Woodchip/pulp paper,
paperboard, processed
lumber products
CoC
Certification

Plant
FSC™ Certified
Products(end products)
Copying paper,household paper,
corrugated containers
CoC
Certification

Financial andNon-financial Data

Base
paper

The Group also manufactures FSC™ certified products(FSC™ C014119, etc.), the use of which indirectly contributes to preserving forests.
These products use woodchips that meet FSC™ requirements. The Group has acquired FSC™-FM certification*1 for its overseas forest plantations and FSC™-CoC
certification*2 for its manufacturing, processing, and distribution operations. Acquiring integrated certificationfrom forests, converting plants to distribution enables theGroup to offer a wide range of FSC™ certified products,from intermediate products to end products such as
photocopying paper and paper for household use.

FM
Certification

Sustainability Strategy(8)Paper manufacturing and pulp mill

Governance Strategy

100

(1)

Initiatives for Profitability
Improvement

Forests of origin

Utilization of Forest Certification
Programs
Average score foreach question— Green Innovation —Future initiatives
We will conduct surveys for the target main suppliers offuels and subsidiary materials in FY2022 (to complete surveys of all the main suppliers). We will also conduct additional or follow-up surveys to suppliers who have notresponded to the survey yet or who have a low score.

(2) Human rights

The Oji Group Integrated Report 2022

20

53%

We will also continuously conduct monitoring surveys
to suppliers with a score significantly lower than the average score.

(1) Corporate governance related to CSR

87

22%

Initiatives for ProductDevelopment

The results of surveys for 682 suppliers in Japan and overseas of recovered paper, pulp, base paper, woodchips, chemicals, PKS (palm kernel shells for use as fuel) and others in FY2020 and FY2021 are as follows. Number of suppliers that
responded to the surveys: 428 (rate of response: approx. 63%).

activities

100— Sustainability —Results of Supplier Sustainability Surveys (FY2020 and FY2021)(8) Information security/protection and fair corporate

80

Initiatives forEnvironmental Issues

Results(1) Conducted sustainability surveys of recovered paper, pulp, base paper, woodchips, chemicals
and fuels (PKS, RPF and others)(2) Achieved traceability at wood raw material suppliers(5) Quality and safety

60

(%)

Targets

Eight items from an ESG perspective

40

5%

(%)

0

(1) Conduct sustainability surveys for main suppliers(2) Achieve traceability based on the Wood Raw Material Procurement Guidelines

The surveys were conducted for eight items listed from an
ESG perspective in the form of questionnaire.
The average score of all suppliers calculated by adding
the points of all eight items including corporate governance, human rights and labor was 479 (out of 800),
which is about 60%. The item with a high average score
was “Labor” at 67 while the one with a low average score
was “Corporate governance” at 53. We also focused onhuman rights, which has drawn global attention as a material issue, and extracted issues (see P88).
We will provide feedback of the response results to
suppliers (with radar charts) so that the suppliers can understand their strengths and weaknesses in ESG to reduce risks in the entire supply chain.

63%

What the Oji Group
Aims For* We revised the Policy provisions relating to reducing GHG emissions, as well as climate change, management of water resources, protection of laborrights, etc., and requested our suppliers to adhere to the revised Policy.

Human Rights-Related Issues

History of the Oji Group’s
Value Creation

The Oji Group is expanding and enhancing its CSR (Corporate Social Responsibility) procurement, which takes environmental and social factors into consideration when procuring raw materials. The Group shares the Oji Group Partnership
Procurement Policy with all its divisions involved in procurement, and requests the understanding of new suppliers before
starting transactions. The Group also informs all existing suppliers of revised content at the time of revision of the policy tofulfill its social responsibilities along the entire supply chain.

Customers
Distribution, users,
consumers

Sales, management,
logistics

The Oji Group Integrated Report 2022

88

Sustainability Strategy

Effective Resource Utilization (Water)

Effective Resource Utilization (Water)—Initiatives for Water Risks

6.4,6.5

12.4,12.5
12.6

14.1

15.1,15.2
15.3,15.4
15.5,15.c

Identify water risks in businesses

Results

Of all 291 business sites, water intake and production at 13 sites with high water risks accounted
for less than 1% and about 2%, respectively.

(1) Water intake intensity in FY2030: Reduction by 6% or more from FY2018 (0.48)(2) Emission intensity for substances of environmental concern in wastewater: Reduction by 15%
from FY2018

Results(1) Water intake intensity in FY2021: 0.49* (1.8% increase)(2) BOD: 5.9% reduction, COD: 8.3% increase, SS: 12.9% reduction* (thousand m³/¥ mil.)Water Intake Reduction
The paper mills take water from rivers, etc. while reusing water used in the processes by purifying water and returning it toprevious processes to reduce water intake and use water resources effectively.

Water intake

6,571

44%

Low to medium (10-20%)

110

309,945

43%

5,567

37%

Medium to high (20-40%)

93

121,160

17%

2,660

18%

High (40-80%)

7

1,246

0%

143

1%

Extremely high (>80%)

6

165

0%

102

1%

291

714,281100%

15,043100%

737701

706672714676

0.48

0.49

0.52

0.49

500

0.75

0.50

250

IntakeWastewater
Consumption (evaporation,
product moisture, etc.)

0

0.25

2018

2019

2020

2021

(FY)

0.00

A star mark indicates that FY2021 figures have been assured by KPMG
AZSA Sustainability Co., Ltd.

Purification of Wastewater
At mills, we manage wastewater quality with voluntary
management values that are stricter than the regulatory
values.
We are working to purify the wastewater. For example,
COD emissions for substances of environmental concern* in wastewater have been reduced by at least approximately 47% compared to the emissions in keepingwith the regulatory values to purify the wastewater.

COD (Chemical oxygen demand)
The amount of oxygen required as calculated from the amount of oxidantthat is consumed when organic matter is oxidized.
SS (Suspended solids)
Particulates suspended in water.

Regulatory levels of emissions

Actual emissions(thousand t)
75

68

-47%

50

-76%

12

7
0

-82%

36

29
25

67

BOD

COD

SS

The Oji Group Integrated Report 2022

Financial andNon-financial Data

* BOD (Biochemical oxygen demand)
The amount of oxygen consumed when organic matter is broken down
by aerobic microorganisms. The most widely used indicator of pollution.
When BOD is high, foul odors, etc. begin to be produced.

Release of Substances of Environmental Concern in
FY2021 (Wastewater)

Sustainability Strategy

The Oji Group Integrated Report 2022

740708Governance Strategy

Provision of septic tanks to third parties: As an initiative to improve the water quality in the streams and the overall health of local communities in the regions where it operates, CENIBRA donated 100 septic tanks in 2020.They are used to treat household
effluent on the rural properties in the regions, including the participants in the Forest
Incentive Program promoted by CENIBRA.

750

Treatment
and ReuseRiver Basin Management by CENIBRA, Brazil

Subsoiling: In recent years CENIBRA has developed subsoiling activities before planting seedlings, enhancing regular rainwater infiltration into soil that has been compacted by the activity of heavy machinery in its own forests. Now CENIBRA is transferring
this technique and expertise to aid the surrounding lands, especially lands for grazing,
to contribute to the recovery of underground water retention in compacted pasturelands, as well as the prevention of erosion resulting in better water quality in the basin.

1.00— Profitability —

39%

1,000

Initiatives for Profitability
Improvement281,765

Construction of water reservoirs in the forest: CENIBRA constructed 51 reservoirs
in its own forest from 2018 to 2020, enabling a total of more than 1 million m³ of water
to be stored, enabling excess water during the rainy season to slowly filter into the soil,
later into the river, maintaining the level of the water table in the basins. The location ofthese reservoirs was determined in consideration of the water supply also for residential use, increasing harmony with the local communities regarding the use of water
resources.

(thousand m3/¥ mil.)(million m3)

Production (kilo ton)75

CENIBRA’s eucalyptus plantations and pulp production use water from the Doce Riverbasin in Minas Gerais, Brazil. In recent years, there has been less rainfall than usual,and the risk of a water shortage has been a concern for the whole region, so CENIBRA identified the subbasins of major influence based on regular waterflow monitoringat each waterpoint, to focus on the water conservation activities for these subbasins incooperation with public authorities as follows:

Water intake intensity— Green Innovation —Water intake (thousand m³)

Wastewater

Initiatives for ProductDevelopment

Number of business sites* 5-level assessment of Water Risk Atlas Baseline Water Stress in AQUEDUCT (3.0), the WRI’s water risk assessment tool. It shows the degree of potential
competition among other users in water use. The higher the value, the more competitive and riskier. https://www.wri.org/aqueduct

89

Water Intake , Wastewater , and Water Intake Intensity

FY2021

Low (<10%)

Total

Target— Sustainability —Water risk

15.1,15.2
15.3,15.4
15.5,15.c

Water intake in Household and Industrial Materials Businesses, Forest Resources and Environment Marketing Businessand Printing and Communications Media Business, which are core businesses of the Oji Group, accounts for 93% of theentire Group with huge amount of water use. We reduce water intake by reusing water and using it in multiple stages in
the mills as limited resources. In addition, used water is treated through multi-stage purification to return as much water as
possible to water areas.

Conceptual Drawing of Water Reuse

Water Risk Assessment*

14.1

Initiatives forEnvironmental Issues

The analysis of water risk assessment of all 291 business sites (including those added in FY2021) based on the WRI’s water risk assessment tool AQUEDUCT (3.0) showed that there were 13 sites that were located at areas with high water risk
(High and Extremely high).
Water intake at the 13 sites accounted for less than 1% and their production accounted for about 2% of the total. This
indicates that water risk in the entire business is deemed low. However, we will continue to take on initiatives to avoid water risks regardless of the assessment results.

12.4,12.5
12.6

What the Oji Group
Aims For

Target6.4,6.5

History of the Oji Group’s
Value Creation

The depletion of water resources and damage from floods that have been caused by climate change in recent years posesignificant risks not only to the continuity of businesses but also to industries and people’s health in the community wherebusinesses are developed. When developing businesses, the Oji Group strives to identify water risks in businesses basedon the assessment made by the World Resources Institute (WRI), a global environmental research organization.

—Water Intake and Wastewater

90

Sustainability Strategy

Effective Resource Utilization(Recovered Paper)

6.4,6.5

12.4,12.5
12.6

14.1

15.1,15.2
15.3,15.4
15.5,15.c

Improvement in Quality of Recovered Paper
Foreign materials other than paper mixed in with recovered paper, or ink from specially printed or processed
paper, can cause color spots and surface swelling of paper products, resulting in quality problems. These contaminants are collectively referred to as prohibitedmaterials.

The Oji Group cooperates with recovered paper recyclers and the Paper Recycling Promotion Center to engage in awareness campaigns targeting local authorities,
schools and businesses to prevent prohibited materials
from commingling.

History of the Oji Group’s
Value Creation

Around 60% of the raw materials for paper production comes from recovered paper. The recovered paper from household
is mainly collected through “community collection” and “administrative collection by local authorities” and used in the paper production at the paper mills. The idea of sustainable paper recycling is becoming even more important with thegrowing demand for paper as an alternative “Plastic -Free” material. Supported by the paper recycling, which has becomea regular part of our daily lives, the Oji Group is actively involved in the use of recovered paper and strives to maintain asound paper recycling system by setting stable recovered paper procurement prices. In order to further improve our recovered paper utilization ratio, we are promoting the use of various types of recovered paper and working to expand thepaper recycling from a broader perspective by participating in cross-industry activities.

Prohibited materials
To increase recovered paper utilization ratio:
At least 70% in Japan

Results

67.1% in Japan

Materials other than paper

Changes in the Amount of Recovered Paper Use andRecovered Paper Utilization Ratio*2* Created based on the Paper Recycling Promotion Center’s website

(kt)
7,000

(%)
70.0

Initiatives in Overseas Group Companies

6,000

68.0
66.0

5,000

64.0
62.0

3,000

60.0

2,000

58.0

1,000
0

56.0
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 (FY)Oji Fibre Solutions’ recovered paper collection vehicle

Quality confirmation by GSPP when receiving recovered paper

54.0

Initiatives for Profitability
Improvement

Copying paper

Old newspapers

Sweets box

Corrugatedcontainers

Trend in Global Recovered Paper
Recycling
In countries such as Southeast Asia and India, where economic growth is rapid, the spread of e-commerce has led to
an increase in the production of corrugated board and a risein demand for corrugated containers. Recovery rates are still
low in these countries and recovered paper imports are increasing. The international supply and demand for recovered
paper is changing dramatically as China, which was the main
exporter until 2020, has banned the import of recovered
paper.

Change in the amount of imports/exports of old corrugatedcontainers in the main regions— 2018EU— 2021

North America
5.14 million t

3.71 million t
2.43 million t

1.07 million t

China 1.63 million t

Japan

0.88 million t 4.27 million t

India
Southeast Asia*

1.92 million t* Countries included in the 2021 data of imports/exports in Southeast
Asia: Vietnam, Thailand, Malaysia, Indonesia* Created based on the trade statistics of each country

Old corrugatedcontainers

Confidential document processing
facility (Oji Materia Edogawa Mill)91

The Oji Group Integrated Report 2022

Kneading pulper, dissolving
equipment for difficult-to-process
paper (Oji Materia Fuji Mill)

Corrugated containers

The Oji Group has worked to maintain a domestic paper recycling system by building an integrated system thatstably procures recovered paper domestically and manufactures paper products such as newsprint, printing paper
and paperboard at production sites across Japan. In recent years, the development of new paper products for use
in plastic-free applications and new products with various processing methods that utilize the characteristics of paper has created new challenges for the recycling of recovered paper. We will continue to work on stable procurement of recovered paper and expanding the use of recovered paper in consultation and cooperation withrecovered paper recyclers, the Paper Recycling Promotion Center and local authorities.
The Oji Group Integrated Report 2022

Financial andNon-financial Data

Future Initiatives

Sustainability Strategy

Books

Old magazines

Topics

Products
Newspaper

Governance Strategy

Types of Recovered Paper and Examples of Main
Paper Products— Profitability —The Oji Group produces a diverse range of products, including newsprint, printing paper and paperboard, anduses various types of recovered paper, including old
newspapers, old magazines and old corrugated containers. The relationship between the main types of recovered paper and the products that use recovered paper isshown in the diagram on the right. The Oji Group is also
involved in recycling confidential documents that werepreviously often incinerated, difficult-to-process recovered paper that were unsuitable for paper recycling, suchas plastic-laminated products, and paper that contains
gold and silver.

Use of Recovered Paper in Malaysia
GSPP manufactures containerboard made of recovered
paper, and significantly enhanced production capacity in
2021. In addition to approximately 240,000 tons of recovered paper collected primarily from partnering collecting and sorting sites in Malaysia, GSPP imports
recovered paper from overseas including New Zealandand Japan. GSPP also examines the quality of recovered
paper collected in Malaysia when receiving it to improve
the quality of recovered paper.

Amount of recovered paper use (kt)
Old corrugated containers
Old magazines
Old newspapers
OthersRecovered paper utilization ratio (%)— Oji Group companies in Japan — All Japan*3*2 Aggregation period: From January to December for the amount of recovered paper use, from April to March for recovered paper utilization ratio*3 All Japan: Paper Recycling Promotion Center

Recovered paper

Initiatives for the Expanded Use of
Recovered Paper

Use of Recovered Paper in New Zealand
Oji Fibre Solutions (Oji FS) is the only containerboard
manufacturer in New Zealand and the largest consumerof recovered paper. It boasts a recovery volume that exceeds not only its own consumption, but also that of thecountry’s domestic consumption. Oji FS collected about
240,000 tons in FY2021, and the surplus exceeding its
own consumption was exported overseas, mostly to the
Oji Group company GSPP (Malaysia).

— Green Innovation —4,000

Prohibited materials sample bookInitiatives for ProductDevelopment*1 Recovered paper utilization ratio = Volume of recovered paper consumed ÷ Total volume of fiber raw materials consumed(total consumption of recovered paper, wood pulp, and others)

Lesson of paper recycling in collaboration with the Paper Recycling
Promotion Center

Stone, glass, metal, earth and sand, woodchips, fabric, plastics, etc.

— Sustainability —Current Recovered Paper Utilization
Ratio

Stained Paper

Corrugated containers that contained imported fruits andvegetables or processed marine products
Food or oil stained paper

Initiatives forEnvironmental Issues

Present State and Activites in Japan

Waxed corrugated containers

The Oji Group consumes 3.83 million tons of recovered
paper for its production annually. This is equivalent to
24% of 16.03 million tons of the total recovered paper
consumed in Japan. The breakdown of recovered paper
use is as follows: 53% old corrugated containers, 21%
old magazines, and 17% old newspaper. As the use ofrecovered paper expands, the recovered paper utilization
ratio continues to increase slightly year on year. In recent
years, the decline in printing paper production has been
greater than the increase of paperboard, which has ahigher recovered paper utilization ratio, and changes in
the paper variety composition have pushed up the overall
recovered paper utilization ratio*1. In FY2020, the ratio
became 68.5% because of significant decrease in the
production of paper due to the spread of COVID-19 andother reasons. In FY2021, the ratio was 67.1% due to arecovery in paper production.
The Oji Group has maintained a high recovered paper
utilization ratio by continuously working on the recyclingof various types of recovered paper. From FY2021, we
have been working to further expand the use of recovered paper with the aim of achieving a recovered paper
utilization ratio of 70% or more (in Japan) under the Environmental Action Program 2030.

What the Oji Group
Aims For

TargetPaper products that cannot be used as raw materials of paper manufacturing
Aromatic paper, perfumed
Wrapping paper and corrugated containers for detergents,
soap and incense sticks, etc
paperSublimation transfer printing
Thermal paper, iron printing paper, 3D copying paper (suchpaper, thermal expansion paper as the one for Braille)

92

Sustainability Strategy

Respect for Human Rights

Enhancing Human Capital
5.1,5.4
5.5,5.c

8.5,8.7
8.8

10.2,10.3
10.4

Percentage of target people who get education and training in human rights: 100%Results

Attendance for education and training in human rights as part of target training: 97.9% (2,640
participants)

10.2,10.3

In order to continuously enhance corporate value, we believe it is important for every employee to embrace diversity ofvalues and flexibility in thinking and to enhance his/her skills. For the Oji Group to grow as a global enterprise “beyond
boundaries,” we are fostering human resources based on the Oji Group Human Resource Philosophy, in accordance with
our fundamental principle, “a company’s strength originates from human resources.”Oji Group Human Resource Philosophy
Management Philosophy and Purpose
Behavior Standard
Corporate Code of Conduct
Management Strategies
Oji Group Human
High ethical principles Understanding and practicing of Management Philosophy andResource Philosophy Management Strategies Awareness of and efforts for transformation
Self-training and contribution to the organization’s growth Actions with global awareness

What the Oji Group
Aims For

Target8.2,8.5
8.8

History of the Oji Group’s
Value Creation

In the belief that the responsibility to respect human rights is an important element of the global code of conduct, in August 2020 we established the Oji Group Human Rights Policy in order to further strengthen and implement initiatives involving respect for human rights. From FY2022, we will implement Human Rights Due Diligence to conduct assessment
surveys for consolidated companies in Japan and overseas. The details will be discussed twice a year at the Sustainability
Committee chaired by the Group CEO with Directors as members to make use of the results in the policy for the following
fiscal year.

5.1,5.4
5.5,5.c

Our Goal: Fostering of human resources who embody the Oji Group Human Resource Philosophy

The Oji Group Human Rights Policy supports and respects international norms such as the International Bill of Human
Rights based on the United Nations Guiding Principles on Business and Human Rights. The policy is applicable to all theofficers and employees of the Oji Group and is reflected in all its business activities. All the stakeholders of the Oji Groupare expected to understand and follow the policy. We will also create a system of Human Rights Due Diligence to identify,
prevent, mitigate and remedy the negative effects on human rights related to business activities to take responsibility for
respect for human rights.

Development of abilities and careers ofdiverse human resources

Improvement in work-life management (working stylereforms and health and productivity management)

Change in mindset and behavior of management level employees(Guiding Principle 17)(3) Follow-up
surveys(Guiding Principle 20)

Training all eligible employees (excluding training provided to those selected or those who apply)

Results

Web training for all management level employees: 97.9% (2,640 participants)*1
Career design training: 97.6% (124 participants)*2*1 The figure for management training refers to the one calculated by adding the figures for the new manager training, new general manager training andDiversity Management Web Training in the following table.
*2 The figure for career design training refers to the one calculated by adding the figures for the career building training for employees on the generalist track
and career design training for young employees on the generalist track in the following table.

Main training content (Organized by Oji Management Office)
Goals
Global human resource
development

Significant expansion of target people who receive human rights education

93

The Oji Group Integrated Report 2022

Management training

Managerial personnel
development
Career design
Support for employee
ability development

Eligible employees

OutlineEmployees in their first year
Employees in their fifth to tenthyear
Employees at the age of 31 to 45

Selected new employees are sent to an overseas site for one week
Three months of language training, followed by two years of practical experience at an
overseas site
Six months of language training in Japan, followed by overseas assignment

Online English conversation classes

All employees who apply

Increases overall English ability and develops cross-cultural communication capacity

New manager training

New managers

Manager duties, HR programs, and evaluator training

New general manager training

General manager level

Improve practical communication skills such as diversity management and being
assertive

Managers (in Group companies inDiversity Management Web Training Japan with 301 or more
employees)
Career building training forPre-management employees on
employees on the generalist track
the generalist track
Career design training for young
3rd year employees on theemployees on the generalist track
generalist track
Personal-empowerment system

Qualified individuals

The outline is considered in the Sustainability Committee (feedback skills in FY2021 anddiversity management skills in FY2020).
Understand the functions required of managers, and improve capabilities for setting andsolving issues

Financial andNon-financial Data

The Oji Group provides human rights education to help people understand the policies and raise human rights
awareness.
In FY2021, the Group significantly expanded the target people who receive human rights education by having
the Group’s managers receive Diversity Management Web Training, which covered “business and human rights”(with 2,479 participants), in addition to the new manager training and other conventional human rights education(with 161 participants).
Besides, we also strived to raise awareness of human rights in the Group by translating the Oji Group Human
Rights Policy into multiple languages (10 foreign languages) and posting a series of compliance news, among otherinitiatives.

Name of training
New employee global challenge
Overseas training for young
employees (as trainees)
Oji Global School

Sustainability Strategy(4) Information
disclosure(Guiding Principle 21)

TargetGovernance Strategy

Continuous improvement through PDCA
cyclesBuilding of a correction and complainthandling mechanism (Guiding Principle 22)(2) Integration with internal
divisions and procedures
and implementation of
appropriate actions(Guiding Principle 19)— Profitability —We foster human resources who embody the Oji Group Human Resource Philosophy by providing various kinds of human resources education. In FY2021, we conducted web training for all management level employees for the purpose of acquiring
feedback skills of assessment that are important to help their subordinates develop skills and grow so that we could not only
actively foster global human resources but also change the mindset and behavior of management level employees.

Human Rights Due Diligence(1) Human rights
risk assessment(Guiding Principle 18)

Human Resources Education for the Practice of Management Strategies

Initiatives for Profitability
Improvement

Flow for Human Rights-Related Initiatives

Formulation of the humanrights policy (Guiding Principle 16)(1) Human rights risk assessment:
In FY2022, the surveys will be conducted for the consolidated and other companies in Japan and overseas
to identify regions and sites whose human rights risk
is considered to be high as top priorities.
(2) Integration with internal divisions and procedures
and implementation of appropriate actions:
The responsible divisions will be clarified and a corrective plan will be made if there are matters that need
improving.
(3) Follow-up surveys:
Continuous follow-up surveys will be conductedbased on appropriate indexes to determine whether
effective responses are being made for the effects onhuman rights.
(4) Information disclosure:
Negative effects will be identified and activities conducted will be disclosed in the sustainability report,
the company website, etc.

Respect for human rights (establishment of the Oji Group Human Rights Policy)— Green Innovation —Inclusion & diversity

Human Rights Due Diligence (based on the United Nations Guiding Principles on Business and Human Rights)

Initiatives for ProductDevelopment

Utilization of human resources (proper operation of the role-based personnel grading system and improvement in productivity)

We will start the initiatives of Human Rights Due Diligence from FY2022. First, we will conduct the assessment of humanrights risks and identify sustainability issues that we should focus on.

— Sustainability —Active participation and demonstration of the full potential of every employee
Achieving innovation based on diverse values and creative ideas

Initiatives forEnvironmental Issues

Oji Group Human Rights Policy

Assess their own abilities and establish goals for career self-reliance
Support for self-reliant career development

The Oji Group Integrated Report 2022

94

Sustainability Strategy
Enhancing Human Capital

Inclusion & Diversity
Results

3.7% (16 companies in Japan, at the end of
March 2022)

TargetEmployment rate of people withdisabilities: 2.3% (Japan)

Results

Applied to 6 companies in the Group*: 2.35%(Japan) * See P107
Whole Group: 2.10% (Japan)

Total working hours: 1,850.0 hours (26 Oji Group companies in the Main Office region)

Results

Total working hours: 1,843.3 hours (26 Oji Group companies in the Main Office region)

Reduction of total working hours(26 Oji Group companies in the Main Office region)(hours/year)
2,100

1,933
1,900

1,861
1,839 1,825
1,800

1,827
1,819

2013

2014

2015

2016

2017

2018

2019

2020

Number of female managers

1.8
42

Certification in Health and Productivity Management Organization
Recognition Program

Results

Recognized under the 2022 Certified Health and Productivity Management
Organization Recognition Program (Large Enterprise Category) (for two
consecutive years from FY2021)

95

The Oji Group Integrated Report 2022

Examples of health and productivity management
activities
Conduct health examinations and stress checks
Installation of Health Consultation OfficeWorkplace COVID-19 vaccinations
Introduction of special leave for getting vaccinatedFlu vaccinations (workplace vaccinations, cost subsidized)
Hourly use of accumulated annual leave to go to thehospital

66

82

88

2020
2021 (FY)
2014
2015
2016
2017
2018
2019
A star mark indicates that FY2021 figure has been assured by KPMG
AZSA Sustainability Co., Ltd. For the calculation method, see P107.

Recruitment of people with disabilities
We have proactively promoted the recruitment of people
with disabilities, including the July 2007 establishment of
Oji Clean Mate, a special-purpose subsidiary staffed primarily by people with mental disabilities. As of June 1,
2022, the employment rate of people with disabilities was
2.35% (2.31% a year earlier) for the six major companies
in the Group (including Oji Holdings), satisfying the statutory employment rate. (The group-wide rate was 2.10%(2.04% a year earlier).)

Improvement in work-life management
Support for balancing work and childcare or nursing
care
The Oji Group has introduced various systems that enable employees with childcare or nursing care responsibilities to continue to actively participate in their work,and has informed all employees of such systems.
Encouragement of male employees to engage inchildcare
We encourage male employees to engage in childcare,and in FY2021, 84.7% of eligible male employees took
paternity leave (83.5% a year earlier).
Main Initiatives
Nursery subsidies for employees who return to work
early from their childcare leave
Paternity leave system for male employees (paid leaveof five consecutive days)
Hourly use of accumulated annual leave (for childcare/nursing care)
Leave system for employees to accompany theirspouses’ overseas transfers

The Oji Group Integrated Report 2022

Financial andNon-financial Data

We established the Oji Group Health Declaration in October 2020. We are working on ensuring the good health of
employees under the leadership of our Chief Health Officer (Group CEO). Our activities for health and productivity
management are promoted through cooperation between
companies, health insurance unions and labor unions of
the Oji Group, and the industrial physicians of each business site. These measures aim to create working environments where employees can actively work with soundhealth.

56

72

85

3.7

Sustainability Strategy

Target

2.0
44

3.1

3.6

Governance Strategy

2.9

Health and Productivity Management

In FY2021, we provided Diversity Management Web
Training with the themes of “feedback” and “humanrights” to managers in the Group.

Percentage of female managers

3.5
2.5

Change in mindset and behavior ofmanagement level employees— Profitability —2021 (FY)

Percentage of female managers (16 Group companies inJapan)

1,986

Initiatives for Profitability
Improvement

1,843

Promoting the active participation of women
We are working on initiatives by setting a goal of raising
the percentage of female managers to 5.5% by the endof March 2025. We provide training such as career building training for employees on the generalist track to
pre-management male and female employees on thegeneralist track, aiming at fostering employees without
gender gaps.

— Green Innovation —2,000

Foreign technical interns
The Group recruits a large number of foreign technical interns (including employees hired by local companies outside Japan) from countries such as Vietnam and Thailand
in its corrugated container and folding carton processing
businesses, and has established a system so that they
can work actively in the Group.

Initiatives for ProductDevelopment

Development of abilities and careers ofdiverse human resources

2,050— Sustainability —The Oji Group is promoting “inclusion & diversity” with a view to “vitalization of individuals and the organization,” which enables every employee to play an active role regardless of attributes such as gender, age, disability, or nationality, ultimately
strengthening the Group’s competitiveness with their diverse values and ideas. We have set specific policies of the “development of abilities and careers of diverse human resources,” “change in mindset and behavior of management level employees” and “improvement in work-life management (working style reforms and health and productivity management),”
and conduct awareness surveys as indicators to assess activities.
In April 2022, we integrated the Diversity Promotion Committee with the Sustainability Committee, which is chaired by
the Group CEO with Directors as members due to its establishment to share diversity promotion policies and targets
across the Group.

Initiatives forEnvironmental Issues

TargetWhat the Oji Group
Aims For

Percentage of female managers: 5.5%
(16 companies in Japan, at the end of
March 2025)

Rendering of the completed Oji Group Fuji Training Center (Fujinomiya City,
Shizuoka Prefecture)

Working Style Reforms

In order to thoroughly pursue objectives in line with management strategies, we are taking steps to reduce total
working hours and improve operational efficiency by utilizing the flex-time system and encouraging employees totake annual paid leave with a focus on properly operating
the role-based personnel grading system and boostingproductivity. Furthermore, with a view to the creation of
innovative value, we have implemented the certified researcher system and creative personnel development
system under which we grant researchers with particularly high levels of specialized knowledge discretion regarding their work styles and provide working environmentsthat allow them to focus on research. We introduced the“retirement at age 65” system in FY2017 to enable employees to demonstrate their knowledge, skills, and abilities to the fullest and work with enthusiasm. (Introduced
at 18 Group companies)

TargetHistory of the Oji Group’s
Value Creation

In FY2022, we are constructing a training center in Fujinomiya City, Shizuoka Prefecture to foster human resources including those from overseas through theexchange and training of human resources, etc. We will
aim to complete it within the fiscal year to provide better
human resources education.

96

Sustainability Strategy

Occupational Safety
8.8

Achieve zero fatal and serious workrelated accidents (each fiscal year)

Results

Zero fatal and serious work-related accidents

TargetReduce lost time injury frequency rate
Reduce by 50% compared to FY2018(0.89) (in 2030)

Results

Lost time injury frequency rate: 0.97
(consolidated companies) (January 1 to
December 31, 2021)

Lost Time Injury Frequency Rate
Overseas

Whole Group

1.56
1.5

1.06
1.0

1.07

1.25
1.02

0.75
0.61

0.49

0.0

2015

2016

2017

0.85
0.81

2018

2020

2019

0.76

0.97
0.84
Original content (falling from a stepladder)2021 (Year)A star mark indicates that 2021 figures have been assured by KPMG AZSA
Sustainability Co., Ltd.

* For the calculation method, see P107.

hidden in daily operation,” “There are risk factors that I
wasn’t aware of,” and “I would like to make use of thecontent in my future work.”* The training was started in 2020 in Southeast Asia (headed by Industrial Materials
COMPANY, Oji Asia Packaging) and in 2021 at Group companies in China (headed jointly by each COMPANY and Oji Paper Management (Shanghai)).

Sustainability Strategy

ReportingOji Holdings Corporation
Corporate Sustainability Division
Safety Administration Dept.
Direction and Supervision

Reporting

Each COMPANYCOMPANY Management Companies
Safety and Health Management Division

ReportingDirection
andSupervision

Reporting

KY (hazard prediction) sheet (English)

KY (hazard prediction) sheet (Chinese)

Hazard prediction training (KYT)

Independent Business Companies

ReportingMain Companies
Head Office
Safety and Health Management Division
Direction
andSupervision

Direction and Supervision

ReportingMain Companies
Head Office
Safety and Health Management Division
Direction
andSupervision

ReportingDirection
andSupervision

ReportingAffiliated Companies

Workplaces

Workplaces

Workplaces

Workplaces

Safety and HealthManagement
Division

Safety and HealthManagement
Division

Safety and HealthManagement
Division

Safety and HealthManagement
Division

Future Initiatives
The Oji Holdings Safety Administration Department and the safety divisions of COMPANIES and Lead Company
will promote initiatives to prevent similar accidents by improving and revitalizing safety and health activities acrossthe entire workplace. Such initiatives include actively going to operational sites and having discussions with management members at the sites and workplaces to confirm the structures for safety and health management, safetyof machinery/equipment, and the status of education, as well as participation in workplace safety and health meetings to hear the opinions of workers at the operational area.
The Oji Group Integrated Report 2022

Financial andNon-financial Data

Direction and Supervision

Governance Strategy

The Oji Group Integrated Report 2022

Hazard prediction training (KYT)The Oji Group conducts hazard prediction training (KYT)*
using research on the example of accidents that occurredin the Group and the KY sheet so that every employee
can improve sensitivity to risks and identify risk factors
hidden in various states and situations for the purpose of
considering measures to improve sensitivity to risks andprevent accidents. Participants said, “Risk factors areGroup CEO
Direction and Supervision

Affiliated Companies

97

Initiatives for Prevention of Occupational Accident in Companies Overseas— Profitability —Online workplace safety and health meeting

One-third of accidents that occurred in 2021 involved workers being caught in machines. They occurred mainly because
workers did not stop machinery/equipment. The main principles for safety of “make sure to stop the machinery/equipment” and other basic rules for safety were not observed. In 2022, the Oji Group employees will build a safety culture
based on their own thinking as a key measure. We will work to prevent accidents at work by implementing education andtraining to ensure that rules are observed and improving the safety of machinery/equipment.
1. Basic policies: The Oji Group will promote activities with the target of zero work-related accidents across the entire
Group under the basic principle of “safety as its absolute top priority”.
2. Slogan: Always Follow the Rules and Ensure that Others Follow the Rules to Prevent Fatal and Serious Accidents
3. Key Targets (Targets of the entire Oji Group): Zero fatal and serious work-related accidents
4. Key Measures: The Oji Group employees (including contractors/contractors who enter facilities temporarily) will build
a safety culture based on their own thinking, that is, initiatives to ensure safety based on their own thinking and fromtheir own perspectives, while enhancing their sensitivity to hazards in their own actions and operations.

Oji Group Safety and Health Management Structures aim to prevent occupational accidents and maintain andpromote the good health of Group employees (including affiliates and business
operators who enter the Group’s premises on a temporary basis), and also
clarify responsibilities relating to safety
and health. It stipulates fundamental
matters in the Group Safety and HealthManagement Rules.

VR images (examples)

Initiatives for Profitability
Improvement

VR-based hands-on risk training

Oji Group’s 2022 Safety and Health Promotion Plan

Safety and Health Management Structures

Original content (contact with a hazardous
object)— Green Innovation —

0.79

0.5

1.09

1.08
1.01
0.89
0.88
0.76
0.67

Initiatives for ProductDevelopment

The lost time injury frequency rate* of the Oji Group (consolidated companies) has been on the decline since2016, and was 0.81 in 2020. In 2021, the figure of thewhole Group was up by 0.16 from the year earlier to 0.97
due to an increase in the number of accidents by 11 (2 inJapan and 9 in overseas). According to the Ministry of
Health, Labour and Welfare’s Survey on Industrial Accidents (businesses with at least 100 employees), in 2021,
the rate in manufacturing industries was 1.31 and therate in the pulp, paper, and paper processing manufacturing industry was 1.85.

— Sustainability —

Japan
2.0

Hands-on Risk Training Using Virtual Reality (VR)Installation of devices that simulate hazards and encouraging personnel to take external courses to simulate hazards give workers firsthand experience, contributing to
improving employees’ sensitivity to risks and awarenessof safety. Beginning in 2020, we are gradually conducting
hands-on risk training sessions using VR at workplaces
in Japan and overseas. Many participants remarked
about the highly immersive VR video. One said, “In thescene where you experience an accident, I reflexively
flinched or tried to run. The video let me experience accidents in a way not otherwise possible. I realized how
scary accidents are and got a renewed sense of the importance of following rules.” We create original content
which includes scenarios that have ever occurred in the
Oji Group every year so that employees can learn in anenvironment that is similar to the operation sites where
they work every day.

Initiatives forEnvironmental Issues

Lost Time Injury Frequency Rate
(Safety Performance)

Promotion of holding safety and health meetings
joined by all employees
Oji Group workplaces in Japan hold safety and healthmeetings (occupational safety and health committees,
workplace safety and health meetings, workplace discussions, etc.) to have opportunities to discuss the prevention of occupational accidents, health impairment,
creation of comfortable working environments, and maintenance and promotion of good health every month,
thereby promoting safety and health activities with a unified labor and management approach.
In addition, the Group workplaces in Japan work on
safety and health activities with a unified approach of affiliates (contractors in the facilities) and all the employees. In
order to create an open working environment, the employees and affiliates attend each other’s safety and healthmeetings or hold joint meetings, and hold safety andhealth meetings joined by non-regular employees andtemporary employees. We also hold online meetings toprevent the spread of COVID-19.

What the Oji Group
Aims For

TargetInitiatives for Prevention of Occupational Accidents

History of the Oji Group’s
Value Creation

The Oji Group ensures the safety and health of workers under the policies of “observing all the rules of compliance, safety
and environment is the core of business activities” and “basic principle with safety as its absolute top priority” by aiming tobecome a company in which every Group employee is aware of these rules and standards on occupational safety andhealth, practices them, and complies with them. At the same time, we promote the creation of comfortable workplace environments and strive to create a better workplace safety climate so that all workers in the Oji Group can work in a safe
environment and with a sense of security.

98Financial and Non-financial Data

Financial and Non-financial Highlights

FY2011

Segment

FY2012FY2013

FY2014FY2015FY2016FY2017FY2018FY2019FY2020

FY2021

1,347.3

1,433.6

1,439.9

1,485.9

1,551.0

1,507.6

1,359.0

1,470.2

(%)

10.6

16.7

20.3

22.8

27.8

28.2

31.0

32.0

29.9

29.3

33.5

Operating profit(¥billion)

53.8

43.5

57.3

43.9

72.0

70.2

70.8

110.2

106.1

84.8

120.1

Profit attributable to owners of parent(¥billion)

22.2

21.6

31.6

15.5

12.7

40.3

36.2

52.0

58.2

49.6

87.5

Free cash flows(¥billion)

38.3

29.2

42.1

(74.6)

84.8

117.2

49.2

74.0

59.7

35.5

51.0

Net D/E ratio(times)

1.6

1.4

1.1

1.0

1.0

0.8

0.7

0.7

0.6

0.6

0.7

Return on equity (ROE)

(%)

5.0

4.6

5.9

2.6

2.1

6.7

5.6

7.7

8.5

6.9

10.9

Capital investment, etc.

(¥billion)

54.7

70.1

76.7

80.1

57.4

57.9

69.3

62.1

97.5

98.4

114.0

(¥)

10.0

10.0

10.0

10.0

10.0

10.0

10.0

12.0

14.0

14.0

14.0

Overseas sales ratio

Dividend per shareNon-financial Highlights ESG data

https://ojiholdings.disclosure.site/en/themes/116/

Lost time injury frequency rate (LTIFR)*2

7,606 kt-CO2e

714 million m³

0.97

Change from FY2020 +1% (overseas)

Change from FY2020 +146 kt-CO2e

Change from FY2020 +8 million m³

Change from FY2020 +0.16

100

100

94

100

100
91

92

5.35

7,836

7,650

5.49

7,460

5.17

500.7
744

Water intake intensity (m³/¥ million)

488.6
737

477.4
740

519.7

706

7,606

Domestic

485.9

Overseas

Whole Group

1.25

714
1.02

1.09

1.08

1.01

0.97

0.85
0.89
0.79

0.88

0.81
0.76

0.76

0.84

2017

2018

2019

2021

2020

(FY)

2017

Energy consumption*2

2019

2020

2021

(FY)

Effective waste utilization ratio*1

2017

2018

2019

2020

2021

(FY)

Percentage of female managers*2 (16 Group companies in Japan)

2017

2018

2019

2020

94.2%

3.7%

35,608Change from FY2020 +0.2%

Change from FY2020 +0.1%

Change from FY2020 -426 (overseas -216)

3.95

5,822

3.75

3.84

3.5
2.9

5,660
5,219

2018

3.67

2019

2020

5,400
94.8

2021

Japan

(FY)

66
94.1

94.2

2017

2018

93.6

2019

94.0

2020

3.6

3.1
82

85

3.7
88

72

94.2

2021

(FY)

2017

2018

2019

2020

2021

(FY)

Overseas

Percentage of overseas employees

36,14436,30919,062

19,16936,81019,82336,034
19,45635,60819,240

53.9

54.0

54.0

52.7

52.8

17,082

17,14016,987

16,57816,368

2017

2018

2019

2020

2021

Financial andNon-financial Data

5,874

3.75

Number of female managers
Percentage of female managers(Year)

Sustainability Strategy

5,400 thousand kL oile

Effective waste utilization ratio (%)

2021

Number of employees (excluding temporary employees)

Change from FY2020 +181 thousand kL oile
Energy consumption (thousand kL oile)
Energy consumption intensity (kL oile/¥million)

2017

2018

Governance Strategy

0.67— Profitability —

7,944

5.07

5.05

Water intake (million m³)

Initiatives for Profitability
Improvement

92

GHG emissions (kt-CO2e)
GHG emissions intensity (t-CO2e/¥million)— Green Innovation —Japan 100%, Overseas 92%
Company-owned forests in Japan (SGEC (%))
Overseas forest plantations (FSCTM, etc. (%))

89

Water intake

Initiatives for ProductDevelopment

Greenhouse gas (GHG) emissions*2

Forest certification acquisition rate*1

100— Sustainability —1,332.5

Initiatives forEnvironmental Issues

1,241.5(¥billion)

What the Oji Group
Aims For

1,212.9

Net sales

History of the Oji Group’s
Value Creation

Financial Highlights(FY)*1 See P85-86 for calculation method / *2 See P107 for calculation method

99

The Oji Group Integrated Report 2022

The Oji Group Integrated Report 2022

100

Financial and Non-financial Data

FY2021 Business Performance
In FY2021, there was a gradual recovery in demand due to the reopening of economic activities that were stagnated by
the spread of COVID-19, and the pulp sales prices increased. For these reasons, net sales were 1,470.2 billion yen, an increase of 111.2 billion yen (8.2%) year on year. The Group’s overseas sales ratio was 33.5%, an increase of 4.2 points
year on year.
Operating profit was 120.1 billion yen, an increase of 35.3 billion yen (41.7%) year on year, mainly due to increases insales volume and pulp sales prices as well as group-wide initiatives for cost reduction, despite soaring prices of raw materials and fuels. Ordinary profit was 135.1 billion yen, an increase of 52.0 billion yen (62.7%) year on year, mainly due to anincrease in operating profit and exchange gain caused by the revaluation of foreign currency-denominated receivables andpayables. Profit before income taxes was 129.3 billion yen, an increase of 48.4 billion yen (59.8%) year on year, and profit
attributable to owners of parent was 87.5 billion yen, an increase of 37.9 billion yen (76.3%) year on year.

Changes in Assets and Profit/Loss

29.9

29.3

33.5

52.52
7.7

1,358,985

1,470,161

Operating profit(¥ million)

70,781

110,212106,125

84,793

120,119

Ordinary profit(¥ million)

65,958118,370

101,289

83,061

135,100

Profit attributable to owners of parent(¥ million)

36,222

51,97758,181

49,63587,509Total assets(¥ million)

1,960,753

1,951,369

1,885,280

1,981,438

2,053,752

Net assets(¥ million)

810,011815,406

831,657

865,606

875,470

Profit per share

(¥)

36.64

52.52

58.78

50.13

88.35

Net assets per share(¥)

681.52684.50699.12758.28859.29

1. Profit per share was calculated by dividing profit attributable to owners of parent by the average number of shares outstanding for the year under review upon subtractingfrom it the number of treasury stocks.
2. Net assets per share were calculated by dividing net assets by the number of shares outstanding at the end of the year under review upon subtracting from it the number oftreasury stocks.
3. Numbers less than one million yen are rounded down to the nearest million.

Operating Profit, Ordinary Profit, Profit Attributable to
Owners of Parent, Operating Profit Margin

Interest-Bearing Debts, Net Interest-Bearing Debts,
and Equity Ratio

Operating profit (¥ billion)
Ordinary profit (¥ billion)
Profit attributable to owners of parent (¥ billion)
Operating profit margin (%)

Interest-bearing debt (¥ billion)
Equity ratio (%)

Net interest-bearing debt (¥ billion)

135.1
110.2

36.7

34.7

106.1101.3
84.883.1

70.8
66.0
52.0
36.2

34.4

120.1

118.4

41.4

37.9

87.5
647.4
8.2

58.2
7.0

587.6

620.6
535.0

581.7

6.249.6

647.7
497.3

511.4

650.5
594.7

7.1

4.8
2017

2018

2020

2019

2021

(FY)

2017

2018

2019

2021

2020

(FY)

Cash flows from operating activities (¥ billion)

Cash flows from investing activities (¥ billion)

Free cash flows (¥ billion)

699.12
58.78
8.5

36.64

758.28859.29
88.35
10.9

49.2

59.7

140.6
123.2

50.13
6.9

51.0

35.5

74.0

Financial andNon-financial Data

32.0

1,507,607

Sustainability Strategy

31.0

684.501,550,991

Profit per share (¥)

1,470.2
681.52

1,485,895

143.6

127.1

124.5

Governance Strategy

1,359.0(¥ million)— Profitability —1,507.6

Net sales

Initiatives for Profitability
Improvement

1,551.0

FY2021— Green Innovation —1,485.9

Net assets per share (¥)
ROE (%)FY2020Changes in Cash Flows

Net Assets per Share, Profit per Share, and ROE

Net sales (¥billion)
Overseas sales ratio (%)

FY2019Initiatives for ProductDevelopment

Net Sales and Overseas Sales Ratio

FY2018— Sustainability —Consolidated Financial Forecasts for FY2022
For our consolidated financial forecasts for FY2022, the Oji Group anticipates net sales of 1,700.0 billion yen, operating
profit of 105.0 billion yen, ordinary profit of 110.0 billion yen, and profit attributable to owners of parent of 70.0 billion yen.
In FY2022, we will launch the new Medium-term Management Plan ending in FY2024. Under the new Medium-termManagement Plan, we will continue to enhance existing businesses, centering on the packaging business in Japan andoverseas, and expand new businesses, aiming to increase the profitability and scale of our core businesses. At the sametime, we will promote ESG management and address climate change issues through fuel conversion to zero use of coal,
expansion of renewable energy, expansion of afforestation, sustainable forest management, and development of
eco-friendly materials and products derived from wood fiber, to provide new sustainable value.

FY2017

Initiatives forEnvironmental Issues

Financial Position
Cash flows provided by operating activities increased by 16.5 billion yen year on year to 143.6 billion yen (cash flows provided by operating activities for FY2020 were 127.1 billion yen). The main increases in cash were 195.1 billion yen calculated by adding depreciation and amortization to profit before income taxes (143.6 billion yen for FY2020) and an increasein trade payables of 33.9 billion yen (a decrease of 11.9 billion yen for FY2020). The main decreases in cash were an increase in trade receivables of 21.0 billion yen (a decrease of 1.9 billion yen for FY2020), an increase in inventories of 26.0
billion yen (a decrease of 20.2 billion yen for FY2020) and income taxes paid of 22.3 billion yen (payment of 39.2 billion for
FY2020).
Cash flows used in investing activities were 92.6 billion yen (cash flows used in investing activities for FY2020 were
91.6 billion yen) due in part to payment for acquisition of property, plant, equipment and intangible assets. The payment
for acquisition of property, plant, equipment and intangible assets included capital investments necessary for reinforcing
and renewing capacities, improving quality, saving labor, increasing productivity, ensuring safety, and conserving theenvironment.
Cash flows used in financing activities were 136.0 billion yen (cash flows provided by financing activities for FY2020
were 19.9 billion yen) mainly due to the purchase of treasury shares of subsidiaries and payment from changes in ownership interests in subsidiaries that do not result in change of scope of consolidation.
Total assets at the end of FY2021 stood at 2,053.8 billion yen, an increase of 72.3 billion yen from the end of the previous fiscal year. The increase was primarily due to increases in accounts receivable-trade, inventories and property, plantand equipment, despite a decrease in cash and deposits. Liabilities totaled 1,178.3 billion yen, an increase of 62.5 billion
yen from the end of the previous fiscal year, due in part to increases in notes and accounts payable-trade and income taxes payable. Net assets totaled 875.5 billion yen, an increase of 9.9 billion yen from the end of the previous fiscal year,
mainly due to increases in retained earnings and foreign currency translation adjustment, etc., despite a decrease in
non-controlling interests.

Segment

What the Oji Group
Aims For

Financial Data Highlights
History of the Oji Group’s
Value Creation

Analysis and Evaluation of Management Performance

91.6

92.6

74.0

66.6

64.8

Cash in Cash out

Cash in Cash out

Cash in Cash out

Cash in Cash out

Cash in Cash out

2017

2018

2019

2020

2021

5.6

2017

101

2018

2019

The Oji Group Integrated Report 2022

2020

2021

(FY)

2017

2018

2019

2020

2021

(FY)

(FY)

The Oji Group Integrated Report 2022

102

Financial and Non-financial Data

Consolidated Financial Statements

Status of Individual Segments (FY2021)

Consolidated Balance Sheet

Segment

Household and Industrial
Materials(¥ million)

Net sales

Operating profit

700,742

26,127(¥ million)

184,722

15,264

Forest Resources andEnvironment Marketing Business(¥ million)

314,489

55,473

Printing and Communications
Media(¥ million)

244,549

17,797Other(¥ million)

296,542

7,009

1,741,046

121,672

Adjustments(¥ million)(270,885)(1,552)

Total(¥ million)

1,470,161

120,119

Cash and deposits

130,52944,749Notes and accounts receivable-trade297,718−

17.0

Operating Profit Composition by Business Segment

FY2021

21.5

12.5

Short-term investments

5,725

11,074

Accrued expenses

48,87451,457

Merchandise and finished goods

86,44098,616

Income taxes payable

11,52623,993Work in process

19,273

20,29489,090106,266

Other

Raw materials and supplies

32,65731,818

Short-term loans receivable

4,324

4,764

Total current liabilities

441,713533,020

Accounts receivable-other

19,60818,575

Other

17,73418,800

Bonds

155,000

155,000

Allowance for doubtful accounts(1,675)(1,790)668,770645,795

Long-term loans payable

362,718

329,062

Deferred tax liabilities

59,89264,013685,779

709,982

Deferred tax liabilities for land
revaluation

7,739

7,737

Accumulated depreciation(494,548)(513,533)

Net defined benefit liability

54,01054,022

Buildings and structures (Net)

191,231

196,448

Long-term deposits

7,305

Machinery, equipment andvehicles

6,809

2,389,121

2,495,207

Other

27,45028,616

Accumulated depreciation(2,090,184)(2,156,261)

Total non-current liabilities

674,117645,261

298,937

338,946

1,115,831

1,178,282

5.8

60,791

61,622

Accumulated depreciation(55,099)(56,037)

Tools, furniture and fixtures (Net)

5,691

5,585

Land

239,052

240,765

Common stock

103,880

103,880

Forests

105,560

116,490

Capital surplus

109,100

99,163

Plantations

85,584

92,343

Leased assets

55,84465,356

Retained earnings

493,224

567,150

Accumulated depreciation(19,767)(22,713)

Treasury stock(13,400)(13,277)

Leased assets (Net)36,07742,643

Total shareholders’ equity

692,805

756,918

Construction in progress

79,27994,091

1,041,413

1,127,315

Accumulated other comprehensive
income

3,122

3,472

Valuation difference on available-forsale securities

31,65430,500

13.6

19.8

13.3

8.0

9,049

8,079

Deferred gains and losses on hedges

2,721

2,076

12,171

11,552

Revaluation reserve for land

5,684

5,728

163,961

168,545

Foreign currency translation
adjustment(6,418)29,593Long-term loans receivable

6,933

5,571

Long-term prepaid expenses

3,692

3,497

Remeasurements of defined benefit
plans

24,533

26,415Net defined benefit asset

60,99361,542

Deferred tax assets

7,074

8,819

Total accumulated othercomprehensive income

58,176

94,314

Other

17,37922,095

Share acquisition rights

199

157

(952)

(982)

Non-controlling interests

114,426

24,080259,083

269,089

1,312,668

1,407,956

Total net assets

865,606

875,470

1,981,438

2,053,752

1,981,438

2,053,752

Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets

103

The Oji Group Integrated Report 2022

Total liabilities and net assets

The Oji Group Integrated Report 2022

Financial andNon-financial Data

*Net sales and operating profit composition by business segment were calculated excluding adjustments (adjustments for internal transactions, etc.)

Shareholders’ equity

Total intangible assets
Investment securities

45.3

NET ASSETS

OtherInvestments and other assets

FY2020Total liabilities

Tools, furniture and fixtures

Intangible assets

14.6

Non-current liabilities

Buildings and structures

Goodwill
45.6

24,653

3,983

Total property, plant and equipment

Forest Resources and Environment Marketing Business

20,741−

Sustainability Strategy

Household and Industrial Materials
Functional Materials
Printing and Communications Media
Other (%)

Accounts payable-other

Contract assets

Governance Strategy

15.3

166,445— Profitability —

15.4

17.0

129,963260,231

Initiatives for Profitability
Improvement

11.5

14.0

Short-term loans payable

60,227−— Green Innovation —40.8

FY202018.1

234,650−

Machinery, equipment andvehicles (Net)
10.6

197,950

Initiatives for ProductDevelopment

40.3

FY2021

Forest Resources and Environment Marketing BusinessNotes and accounts payable-trade

Current liabilities

Notes receivable–trade

Property, plant and equipment

Household and Industrial Materials
Functional Materials
Printing and Communications Media
Other (%)

(March 31, 2022)

Accounts receivable–tradeNon-current assets

Net Sales Composition by Business Segment(March 31, 2021)

LIABILITIESCurrent assets

Total current assets

1. Adjustment amount is mainly the adjustment concerning internal transaction.
2. Numbers less than one million yen are rounded down to the nearest million.

(March 31, 2022)

ASSETS

Current
consolidated
fiscal year

— Sustainability —(¥ million)

Previous
consolidated
fiscal year

Initiatives forEnvironmental Issues

Subtotal(March 31, 2021)

Current
consolidated
fiscal year

What the Oji Group
Aims For

Functional Materials(¥ million)

Previous
consolidated
fiscal year

History of the Oji Group’s
Value Creation

Financial Data Highlights

104

Financial and Non-financial Data
Consolidated Financial Statements(¥ million)

Previous consolidated fiscal year
⎛ From April 1, 2020 ⎞⎜⎜⎝ To March 31, 2021 ⎠

1,470,161

Cost of sales

1,031,553

1,126,207

112,417Warehouse expenses

6,506

6,771

Salaries and wages

51,921

52,957Retirement benefit expenses

853

(241)

Depreciation and amortization

6,343

5,624

Other

45,422

46,306

Total selling, general and administrative expenses

242,638

223,834
120,119

Non-operating income
Interest income

1,121

883

Dividends income

3,170

3,269

Exchange gain

4,616

15,40465,885497

2,968

Amortization of goodwill

1,099

804

Depletion of standing timber

6,958

6,995

Increase (decrease) in allowance for
doubtful accounts

(52)

31

(Increase) decrease in net defined
benefit asset(2,913)(3,498)

Increase (decrease) in net defined
benefit liability

760

(60)

Repayments of lease obligations(4,786)(6,952)(4,292)(4,152)

Dividends paid

(13,888)(13,889)

Payment from changes in ownershipinterests in subsidiaries that do not resultin change of scope of consolidation(584)(35,059)

Other(1,186)(883)

Net cash provided by (used in) financing
activities

19,932(136,002)

Effect of exchange rate change on cash
and cash equivalents(2,169)4,691

Net increase (decrease) in short-termloans payable(4,049)(23,001)

Impairment loss

Net increase (decrease) in commercial
paper(14,000)−

Proceeds from long-term loans payable

71,27926,003

Repayment of long-term loans payable(43,250)(5,218)Proceeds from issuance of bonds

74,561−

Payment for redemption of bonds(20,000)−

Purchase of treasury shares ofsubsidiaries(24,162)(77,000)

Interest and dividend income
Interest expenses

6,791

6,692

Exchange loss (gain)(3,946)(12,626)

Equity in (earnings) losses of affiliates(142)(2,679)Loss (gain) on sale of investment
securities

438

282

Loss (gain) on return of assets fromretirement benefits trust−(1,049)

1,459

2,283

Loss (gain) on sale of non-current
assets(366)(1,948)Net increase (decrease) in cash and cash
equivalents

53,310(80,291)

Cash and cash equivalents at the beginningof the year

82,390135,669

8,145

Total non-operating income

14,57630,381

Interest expenses

6,791

6,692

Business structure improvement
expenses

1,977

1,869

Other

9,516

8,708

Loss (gain) on sale of businesses

(906)

−

Increase in cash and cash equivalents
resulting from mergers of subsidiaries

7

115

Total non-operating expenses

16,30815,401

83,061

135,100

Loss (gain) on subsidiary status change
from equity method affiliate toconsolidated subsidiary

(808)

−

Decrease in cash and cash equivalents
resulting from exclusion of subsidiaries
from consolidation

(39)

(20)

(Increase) decrease in trade receivables

1,870(20,960)

398

1,955

(Increase) decrease in inventories

20,163(26,001)

Cash and cash equivalents at the end of
the year

135,669

55,474

Increase (decrease) in trade payables

Non-operating expenses

Ordinary profit
Extraordinary income
Gain on sale of non-current assets
Gain on return of assets from retirement benefits trust
Insurance claim income

−

1,049

(11,933)

33,937

2,866

904

Other

6,237

(11,262)292

651

Subtotal

166,535

166,771

Gain on sale of businesses

906−

Profit on subsidiary status change from equity method affiliate toconsolidated subsidiary

808

−

Other
Total extraordinary income

473

345

5,746

4,906

Extraordinary loss

Interest and dividend income received

5,397

4,962

Interest paid

(5,623)(5,805)

Income taxes paid

(39,202)(22,341)

Net cash provided by operating activities

127,107

143,587

Payment for acquisition of property,
plant, equipment and intangible assets(94,674)(98,659)

Proceeds from sales of property, plant,
equipment and intangible assets

854

2,905

Payment for acquisition of investment
securities(1,916)(1,308)Proceeds from sales and redemption of
investment securities

1,163

4,967

Payment for loans receivable(1,066)(546)

Proceeds from collection of loans
receivable

1,396

1,640

−

(1,441)

Cash flows from investing activities

Loss on disposal of non-current assets

1,459

2,283

Loss on disaster

2,065

2,007

Loss on business restructuring

1,977

1,869

Other

1,923

1,615

Total extraordinary losses

7,923

10,745

Profit before income taxes

80,883

129,262

Income taxes-current

28,83037,476

Income taxes-deferred

354

(614)

Total income taxes

29,18536,861

Other

2,682

(125)

Profit

51,69892,400Net cash used in investing activities(91,559)(92,567)

Profit attributable to non-controlling interests

2,062

4,890

Profit attributable to owners of parent

49,63587,509The Oji Group Integrated Report 2022

Payment from changes in ownershipinterests in subsidiaries that result inchange of scope of consolidation

Financial andNon-financial Data

2,968

Sustainability Strategy

497

Impairment loss

Governance Strategy

Gain on sale of investment securities

Loss on disposal of non-current assets— Profitability —2,679

Initiatives for Profitability
Improvement

142
5,524

— Green Innovation —62,758Cash flows from financing activities

Initiatives for ProductDevelopment

Depreciation and amortization

Cash flows from operating activities⎛⎞⎛⎞⎜ From April 1, 2020 ⎜⎜ From April 1, 2021 ⎜⎝ To March 31, 2021 ⎠⎝ To March 31, 2022 ⎠Other

Equity in earnings of affiliates

105

129,262⎛⎞⎛⎞⎜ From April 1, 2020 ⎜⎜ From April 1, 2021 ⎜⎝ To March 31, 2021 ⎠⎝ To March 31, 2022 ⎠— Sustainability —131,590

Selling, general and administrative expenses

84,79380,883Current
consolidated
fiscal year

Initiatives forEnvironmental Issues

343,954

Operating income

Profit before income taxes

Previous
consolidated
fiscal year

What the Oji Group
Aims For

327,431

Freight expenses

Current
consolidated
fiscal year

⎛ From April 1, 2021 ⎞⎜⎜⎝ To March 31, 2022 ⎠1,358,985(¥ million)

Previous
consolidated
fiscal year

Current consolidated fiscal year

Net sales
Gross profit

Consolidated Statement of Cash Flows

History of the Oji Group’s
Value Creation

Consolidated Statement of Income

The Oji Group Integrated Report 2022

106

Financial and Non-financial Data

Third-Party Independent Assurance Report

Environmental Data

Independent Assurance Report

Aggregation period: Japan: April 1 through March 31 of each fiscal year / overseas: January 1 through December 31 of each fiscal
year (April 1 through March 31 for India and Myanmar)
Boundary of data aggregation: Consolidated subsidiaries in Japan and overseas, excluding nonproduction sites (see note for VOC emissions)
FY2018FY2019FY2020

FY2021(kt-CO2e)

7,944

7,836

7,650

7,460

7,606

(kt-CO2e)

6,595

6,394

6,323

6,267

6,398

(kt-CO2e)

1,349

1,442

1,327

1,193

1,208

Scope 3 Purchased goods and services*(kt-CO2e)

3,836

3,923

3,766

3,430

3,663

Energy consumption (crude oil conversion)*3(1,000 kL)

5,874

5,822

5,660

5,219

5,400

Greenhouse gas emissions (Scope 1+ Scope 2)*

1

Scope 1
Scope 2
2

FY2019FY2020

FY2021

(kt)

2,782

2,875

2,757

2,733

2,772

VOC emissions*5

(t)

622

523

481

227

232

FY2019FY2020

FY2021

744,056

740,398

736,684

706,298

714,281

Wastewater(1,000 m )716,792

708,494

701,024

671,965

675,849

Conclusion
Based on the procedures performed, as described above, nothing has come to our attention that causes us
to believe that the Indicators in the Report are not prepared, in all material respects, in accordance with theCompany’s reporting criteria as described in the Report.

FY2017FY2018FY2019FY2020

FY2021Whole Group

1.02

0.89

0.88

0.81

0.97

Japan

0.79

0.76

0.67

0.76

0.84

Overseas

1.25

1.01

1.08

0.85

1.09

(%)

2.9

3.1

3.5

3.6

3.7

Our Independence and Quality Control
We have complied with the Code of Ethics for Professional Accountants issued by the International Ethics
Standards Board for Accountants, which includes independence and other requirements founded on
fundamental principles of integrity, objectivity, professional competence and due care, confidentiality andprofessional behavior. In accordance with International Standard on Quality Control 1, we maintain acomprehensive system of quality control including documented policies and procedures regarding compliancewith ethical requirements, professional standards and applicable legal and regulatory requirements.

(%)

2.03

2.17

2.27

2.31

2.35

(%)

1.83

1.91

2.01

2.04

2.10

3

Social Data
Occupational safety / Diversity

Lost time injury frequency
rate (LTIFR)*6
Percentage of female
managers*7
Employment rate ofpeople with disabilities*8

16 Group companies inJapan
Six applicable Group
companies in Japan
Group companies in Japan

ESG data

107*8 Aggregation date: June 1 after each fiscal year
Boundary of data aggregation:• Six applicable Group companies in Japan: Oji Holdings, Oji Nepia, Oji Imaging
Media, Oji Paper, Oji Management Office, and Oji Clean Mate• Group companies in Japan: 82 Group companies in Japan, including the six applicable Group companies (at least 43.5 employees)
Employment rate of people with disabilities (actual employment rate) = Number ofregular workers with physical or intellectual impairments or with mental illness ÷
Number of all regular workers(Workers with short working hours are counted as 0.5 workers and persons withsevere disabilities are counted as two persons)Notes to the Reader of Independent Assurance Report:
This is a copy of the Independent Assurance Report and the original copies are kept separately by the Company and KPMG AZSA Sustainability Co., Ltd.

Financial andNon-financial Data

*6 Aggregation period: From January 1 to December 31 / Boundary of data aggregation: Oji Holdings Corporation and its consolidated subsidiaries
LTIFR = (the number of lost time injuries ÷ total working hours) × 1,000,000
Total working hours are calculated based on the number of group company employees (regular employees and temporary/non-regular employees) as of the endof September every year, assuming the annual working hours per person is 2,000
hours.
FY2020 figures were updated as a 2020 incident in Japan was recognized as anindustrial accident after the previous Integrated Report was published.
*7 Aggregation date: March 31 of each fiscal year / Boundary of data aggregation:
16 Group companies in Japan
Percentage of female managers = Number of female managers ÷ Number of all
managers/s/ Kazuhiko Saito
Kazuhiko Saito, Partner, Representative Director
KPMG AZSA Sustainability Co., Ltd.
Tokyo, Japan
December 9, 2022

Sustainability Strategy

FY2018(1,000 m3)

Water intake and wastewater

Governance Strategy

FY2017

Water intake— Profitability —Of the substances subject to PRTR law, those corresponding to the 100 types of
VOC indicated by the Ministry of the Environment based on the Air Pollution Control Act have been included.

Initiatives for Profitability
Improvement*4 Industrial waste generation
The volume of waste generated includes valuable materials (general waste is notincluded).
*5 VOC emissions
Domestic Group companies subject to Japanese pollutant release and transfer
register (PRTR) law have been included.

— Green Innovation —FY2018

Our Responsibility
Our responsibility is to express a limited assurance conclusion on the Indicators based on the procedures wehave performed. We conducted our engagement in accordance with the ‘International Standard on Assurance
Engagements (ISAE) 3000, Assurance Engagements other than Audits or Reviews of Historical Financial
Information’ and the ‘ISAE 3410, Assurance Engagements on Greenhouse Gas Statements’ issued by theInternational Auditing and Assurance Standards Board. The limited assurance engagement consisted ofmaking inquiries, primarily of persons responsible for the preparation of information presented in the Report,
and applying analytical and other procedures, and the procedures performed vary in nature from, and are lessin extent than for, a reasonable assurance engagement. The level of assurance provided is thus not as high asthat provided by a reasonable assurance engagement. Our assurance procedures included:Interviewing the Company’s responsible personnel to obtain an understanding of its policy for preparing
the Report and reviewing the Company’s reporting criteria.
Inquiring about the design of the systems and methods used to collect and process the Indicators.
Performing analytical procedures on the Indicators.
Examining, on a test basis, evidence supporting the generation, aggregation and reporting of the
Indicators in conformity with the Company’s reporting criteria, and recalculating the Indicators.
Visiting the Kushiro Mill of Oji Materia Co., Ltd. selected on the basis of a risk analysis.
Evaluating the overall presentation of the Indicators.

Initiatives for ProductDevelopment

FY2017

Industrial waste generation*

4

The Company’s Responsibility
The Company is responsible for the preparation of the Indicators in accordance with its own reporting criteria(the “Company’s reporting criteria”), as described in the Report.

— Sustainability —Environmental impacts*2 Scope 3 Purchased goods and services: Emissions associated with activities up
to the point when materials/components, materials related to purchased goods
and sale, etc. are manufactured. For emission intensities, we have referred to the“Emission intensity database for calculation of GHG emissions by organizations
throughout the supply chain (ver. 2.6)” and the “CO2 equivalents common intensity
database (ver. 4.0).”*3 Energy consumption: Energy consumption in conjunction with the manufacture of
products is calculated excluding the following energy use.
Consumption relating to the electric power business (supply of electricity or heatto other parties) and transport by Group-owned vehicles is excluded.
Energy relating to the supply of electric power or heat to other party is excluded
from fossil fuel and non-fossil fuel derived energy.
Unit calorific values are calculated by using the following laws and international
standards.
Japan: Act on Rationalizing Energy Use and Act on Promotion of Global WarmingCountermeasures
Overseas: IPCC 2006 Guidelines for National Greenhouse Gas Inventories
Since unit calorific values for non-fossil fuels emphasize comparability to reduction
targets, the factors set in the FY2018 report are used.

Initiatives forEnvironmental Issues*1 Greenhouse gas (GHG)
Scope 1 calculation
Japan: Calculated in accordance with Act on Rationalizing Energy Use (Energy
Conservation Act) and Act on Promotion of Global Warming Countermeasures(Global Warming Act)• Emissions relating to the electric power business (supply of electricity or heat toother companies) and transport by Group-owned vehicles are included.
• CO2 emissions from the use of purchased fuels made from waste are excluded.
Overseas: Calculated based on the Greenhouse Gas Protocol Initiative• Greenhouse gas (GHG) emissions from simply burning waste are excluded.
• Greenhouse gas (GHG) emissions from waste disposal and wastewater treatment are excluded.
• Non-energy greenhouse gas emissions (GHG) resulting from quicklime production (lime kiln) are excluded.
Scope 2 calculation
Japan: Basic emissions factors of individual electric power companies published by
the Ministry of the Environment and the Ministry of Economy, Trade and Industry
Overseas: IEA-published CO2 emission factors by country in 2010

We were engaged by Oji Holdings Corporation (the “Company”) to undertake a limited assurance engagement(the “Indicators”) for the period fromof the environmental and social performance indicators marked with
April 1, 2021 to March 31, 2022, except for the lost time injury frequency rate, which is for the period fromJanuary 1, 2021 to December 31, 2021, and for the employment rate of people with disabilities, which is as ofJune 1, 2022, included in its Oji Group Integrated Report 2022 (the “Report”) for the fiscal year ended March
31, 2022.

What the Oji Group
Aims ForFY2017

Greenhouse gas (GHG) / Energy consumption

To the Representative Director of the Board, President and Group CEO of Oji Holdings Corporation

History of the Oji Group’s
Value Creation

A star mark indicates that FY2021 figures have been assured by KPMG AZSA Sustainability Co., Ltd.

https://ojiholdings.disclosure.site/en/themes/116/

The Oji Group Integrated Report 2022

The Oji Group Integrated Report 2022

108

Financial and Non-financial Data

List of Affiliated Companies
Oji Industrial Materials Management Co., Ltd.
Oji Materia Co., Ltd.
Hokuyo Shiko Co., Ltd.
Shin Nihon Feather Core Co., Ltd.
Saga Itagami Co., Ltd.

Oji Container Co., Ltd.

* Equity-method affiliate

Oji Imaging Media Co., Ltd.
Oji Scientific Instruments Co., Ltd.
Kanzaki Specialty Papers, Inc.
Kanzan Spezialpapiere GmbHOji Paper (Thailand) Ltd.
Oji Label (Thailand) Ltd.
Oji Papéis Especiais Ltda.

Hyper-Region Labels Sdn. Bhd.
Tele-Paper (M) Sdn. Bhd.

Sonofax Sdn. Bhd.
Ge-Pap Sdn. Bhd.
SRE-Marketing Sdn. Bhd.
SPNL Print Sdn. Bhd.

Oji Green Resources Co., Ltd.
Oji Paper International Trading (Shanghai) Co., Ltd.
Japan Brazil Paper and Pulp Resources Development Co., Ltd.
Celulose Nipo-Brasileira S.A. (CENIBRA)
Cenibra Logística Ltda.
Cenibra Internacional Serviços e Comércio (Sociedade Unipessoal) Lda
Cenibra Trading Ltd.
Cenibra, Inc.

Oji Paper Co., Ltd.
Tomakomai Oji Shigyo Co., Ltd.
Tomakomai Kyowa Service Co., Ltd.
Oji Shigyo Co., Ltd.
Yonago Oji Shigyo Co., Ltd.
Tomioka Oji Shigyo Co., Ltd.
Nitinan Oji Shigyo Co., Ltd.

Jiangsu Oji Paper Co., Ltd.

Oji Green Energy Shiranuka Co., Ltd.
Oji Green Energy Nichinan Co., Ltd.
Oji Green Energy Ebetsu Co., Ltd.
Oji Green Energy Tokushima Co., Ltd.
MPM Oji Eco-Energy Co., Ltd.
Oji-Itochu Enex power retailing Co., Ltd. * Equity-method affiliate
Oji Ecomaterial Co., Ltd.
Oji Cornstarch Co., Ltd.

Kyokushin Recycling Resources Co., Ltd.
Oji Saito Paper Recycle Co., Ltd.
Oji Trading Co., Ltd.

O&C Ivory Board Co., Ltd. * Equity-method affiliate

Oji Management Office Inc.
Oji Pharma Co., Ltd.
OCM Fiber Trading Co., Ltd.
Oji Forest Products Vietnam Co., Ltd.
Yupo Corporation * Equity-method affiliate
Oji Asia Management Sdn. Bhd.
Oji Myanmar Packaging Co., Ltd.
Oji Paper Management (Shanghai) Co., Ltd.

Oji Oceania Management Co., Ltd.

Chuetsu Pulp & Paper Co., Ltd.

Mitsubishi Paper Mills Limited

Oji Fibre Solutions Group (Oji FS)* Equity-method affiliate* Equity-method affiliate

Oji Fibre Solutions (NZ) Ltd.
Oji Fibre Solutions (AUS) Pty. Ltd.
Oji Foodservice Packaging Solutions (AUS) Pty. Ltd.
Oji Fibre Solutions (QLD) Pty. Ltd.
Oji Cardboard Carton Solutions Pty. Ltd.

Ishizuka-Oji Paper Packaging Co., Ltd.
* Equity-method affiliate

Financial andNon-financial Data

Oji Real Estate Co., Ltd.
Kyokuyo Co., Ltd.
Fujikako Co., Ltd.
Ginpo Pack Co., Ltd.
Oji Hall Co., Ltd.
Oji Paper Insurance Service Co., Ltd.
Hotel New Oji Co., Ltd.
Oji General Hospital

Pan Pac Forest Products Ltd. (Pan Pac)
Pan Pac Forest Products (Otago) Ltd.
Oji Forest & Products Co., Ltd.
Oji Forestry Co., Ltd.
Southland Plantation Forest Co. of New Zealand Ltd. (SPFL)
Albany Plantation Forest Co. of Australia Pty. Ltd. (APFL)
Green Triangle Plantation Forest Co. of Australia Pty. Ltd. (GPFL)
Albany Plantation Export Co., Pty. Ltd.
Panindo Investment Pte. Ltd. * Intermediate holding company
PT Korintiga Hutani (KTH) * Equity-method affiliate
Quy Nhon Plantation Company * Intermediate holding company
Quy Nhon Plantation Forest Co. of Vietnam Ltd. (QPFL)
BINH DINH CHIP CORPORATION
Truong Thanh Oji Plantation Forest Co., Ltd. (TTO) * Equity-method affiliate

Sustainability Strategy

Shared Service
Companies

Ebetsu Oji Shigyo Co., Ltd.
Sunshine Oji (Shouguang) Specialty Paper Co., Ltd.

Oji Packaging Co., Ltd.
Oji Adba Co., Ltd.
Kyushu Package Co., Ltd.

Governance Strategy

Corporate ManagementGroup

Oji F-Tex Co., Ltd.

O&C Paper Bag Holdings Co., Ltd. * Intermediate holding company
Oji Seitai Co., Ltd.
Kusumiseitaijo Inc.
Oji Packaging (Shanghai) Co., Ltd.
Chubushiko Co., Ltd.
Japan Paper Technology Dong Nai (VN) Co., Ltd.
Japan Paper Technology (VN) Co., Ltd.
Chuetsu Package Co., Ltd.
Chuo Shiko Co., Ltd.

— Profitability —Printing andCommunications MediaCOMPANYPT Indo Oji Sukses Pratama * Equity-method affiliate
PT Oji Indo Makmur Perkasa * Equity-method affiliate

Oji Interpack Co., Ltd.
Oji Interpack Korea Ltd.
Suzhou Oji Packaging Co., Ltd.
Oji Packaging Technology (Chongqing) Co., Ltd.
Oji Interpack Singapore Pte. Ltd.
Oji Interpack India Pvt. Ltd.
Oji Interpack Vietnam Co., Ltd.

Initiatives for Profitability
Improvement

Forest Resources andEnvironment Marketing
COMPANYOji Tac Co., Ltd.
New Tac Kasei Co., Ltd.
Oji Kinocloth Co., Ltd.
Oji Kinocloth (Shanghai) Co., Ltd.
Chuetsu Co., Ltd.

Harta Packaging Industries Sdn. Bhd.
Harta Packaging Industries (Perak) Sdn. Bhd.
Harta Packaging Industries (Selangor) Sdn. Bhd.
Trio Paper Mills Sdn. Bhd.
Chiga Light Industries Sdn. Bhd.
Harta Fleksipak Sdn. Bhd.
Harta Packaging Industries (Cambodia) Ltd.
Ojitex Harta Packaging (Sihanoukville) Ltd.
Oji Packaging (Cambodia) Co., Ltd.
United Kotak Bhd.

Sahakij Packaging Co., Ltd.

— Green Innovation —Oji Functional Materials Progressing
Center Inc.

Harta Packaging Group

Ojitex (Vietnam) Co., Ltd.
Ojitex Haiphong Co., Ltd.
United Packaging Co., Ltd.
S.Pack & Print Public Co., Ltd.
PT Oji Sinar Mas Packaging
Oji India Packaging Pvt. Ltd.
Empire Packages Pvt.Ltd.

Initiatives for ProductDevelopment

Functional Materials
COMPANYOji Paper Nepia (Suzhou) Co., Ltd.
Oji Asia Household Product Sdn. Bhd.
OAHP Marketing Sdn. Bhd.

GS Paperboard & Packaging Sdn. Bhd.
GS Paperboard & Packaging(Selangor) Sdn. Bhd.
Oji GS Packaging (Yangon) Co., Ltd.

— Sustainability —Oji Nepia Co., Ltd.

Oji Asia Packaging Sdn. Bhd.
GSPP Group

Initiatives forEnvironmental Issues

Household and Consumer
Products COMPANY

Morikamihanbai Co., Ltd.
Hokkaido Morishigyo Co., Ltd.
Tohoku Morishigyo Co., Ltd.
Sendai Morishigyo Co., Ltd.
Hitachi Morishigyo Co., Ltd.
Gunma Morishigyo Co., Ltd.
Nagano Morishigyo Co., Ltd.
Niigata Morishigyo Co., Ltd.
Shizuoka Morishigyo Co., Ltd.
Tokai Morishigyo Co., Ltd.
Hokuriku Morishigyo Co., Ltd.
Tottori Morishigyo Co., Ltd.
Shikoku Morishigyo Co., Ltd.
Kyushu Morishigyo Co., Ltd.
Aipacks Co., Ltd.
Fuji Co., Ltd.

What the Oji Group
Aims For

Musashi Oji Container Co., Ltd.
Kanto Pack Co., Ltd.
Honshu Rheem Co., Ltd.
Wakayama Oji Container Co., Ltd.
Kansai Pack Co., Ltd.
Chiyoda Meiwa Danboru Co., Ltd.
Nihon Seika Hoso Co., Ltd.
Kyodoshiko Corporation
Kyodo Hinode Sangyo Co., Ltd.
Kunshan Oji Filter Co., Ltd.
Nantong Oji Filter Co., Ltd.

Morishigyo Co., Ltd.

History of the Oji Group’s
Value Creation

Industrial Materials
COMPANY

Oji Logistics Co., Ltd.
Oji Rikuun Co., Ltd., Hirata Warehouse Co., Ltd.
Oji Engineering Co., Ltd.
Oji Machinery Hokkaido Co., Ltd., Oji Machinery Chubu Co., Ltd.
Oji Business Center Co., Ltd.
Oji Human Support Co., Ltd.
Excerpts from consolidated subsidiaries, non-consolidated subsidiaries, and equity-method affiliates (as of March 31, 2022)

109

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110

A Year at
the Oji Group

Financial and Non-financial Data

Corporate Data / Stock Information / Evaluation from Society
Company Profile (as of March 31, 2022)

Stock Information (as of March 31, 2022)

Company name
Director of the Board, President

Listing stock exchange
Securities Identification
Code
Share register manager
and accountadministration authority
for special accounts

Headquarters address
Start of businessCorporate establishment
Capital
Total number of authorized shares
Total number of issued shares(treasury stocks included in the
total)
Number of shareholders
Number of employees of theconsolidated GroupOji Holdings Corporation
Hiroyuki Isono (appointed April 1, 2022)
7-5, Ginza 4-chome, Chuo-ku, Tokyo
104-0061 Japan
February 12, 1873
August 1, 1949
¥103,880 million
2,400,000,000 shares
1,014,381,817 shares(22,159,699 shares)
76,830Tokyo Stock Exchange
3861
Sumitomo Mitsui Trust Bank, Limited
4-1, Marunouchi 1-chome, Chiyoda-ku,
Tokyo Japan

Mailing address

Transfer Agency Department, Sumitomo
Mitsui Trust Bank, Limited
8-4, Izumi 2-chome, Suginami-ku, Tokyo
168-0063 Japan

Toll-free telephone
number+81-120-782-031

Developed “kinarito,” aplant-derived nonwoven
fabric material.

Launched “nepia nepi-eco Biomass
Mask 30 pcs” containing 80%
plant-derived materials. (P48)

Developed“MEGURISH(cotton),” a
recyclable
resource mixed
papermaking.
(P52)

35,608Principal Shareholders (as of March 31, 2022)

February

Distribution of Shareholders
Percentage ofShares held
total shares(Thousands)
issuedName of shareholder

March

The Master Trust Bank of Japan, Ltd. (Trust account)
Custody Bank of Japan, Ltd. (Trust account)
Custody Bank of Japan, Ltd. (Trust account 4)
Sumitomo Mitsui Banking Corporation
Nippon Life Insurance Company
Mizuho Bank, Ltd.
Oji Group Employee Stock-holding Association
STATE STREET BANK AND TRUST COMPANY 505001
The Norinchukin BankSTATE STREET BANK WEST CLIENT - TREATY 505234

157,740
66,68434,873
31,66825,65821,636
19,922
17,24816,654
15,299

15.9
6.7
3.5
3.2
2.6
2.2
2.0
1.7
1.7
1.5

January(as of March 31, 2022)
Other domestic
corporations
8.6%

Individual and others
17.8%

Treasury stocks 2.2%

DecemberFinancial institutions /Securities companies
47.9%

Oji Papéis Especiais (OPE)enhanced thermal paper production
machines and started operation. (P51)

Oji Fibre Solutions
established and relocated a
corrugated container plant andstarted operation. (P45)

Foreign investors
23.5%

November

1. The Company holds treasury stock of 22,159 thousand shares, which is excluded from theabove list.
2. The percentage of total shares issued has been calculated after excluding the Company’streasury stock (22,159 thousand shares).
3. Numbers less than one thousand are rounded down to the nearest thousand.

Evaluation from Society
FTSE Blossom Japan Index

2022

October
GSPP increased
containerboard machines
and started operation. (P45)

Oji has been selected for the FTSE Blossom Japan Index, one of the ESG indexes selected by the Government Pension
Investment Fund (GPIF), since September 2019. (Scope: Oji Holdings)

Succeeded in developing
an eco-friendly biaxially
stretched polypropylene
film that contains
polylactic acid. (P37)

Started experimental
sales of an automotive
windshield film with heatshielding properties.

September

FTSE4Good Index Series

Added three new products to the “SILBIO
series,” barrier paper materials. (P51)

Oji has been selected for the FTSE4Good Index Series, an ESG index established by FTSE Russell, since September 2019.
(Scope: Oji Holdings)

AugustFTSE Blossom Japan Sector Relative Index
Oji has been selected for the FTSE Blossom Japan Sector Relative Index, an ESG index established by FTSE Russell, sinceApril 2022. (Scope: Oji Holdings)

SOMPO Sustainability Index
Oji has been selected since June 2019 for the SOMPO Sustainability Index, which is used for SOMPO Sustainable Investment, an investment product of SOMPO Asset Management Co., Ltd. (Scope: Oji Holdings)

S&P/JPX Carbon Efficient Index
Oji has been selected for S&P/JPX Carbon Efficient Index since September 2018. Constituents of the index are selected witha focus on companies’ disclosure of environmental information and carbon emissions per net sales. (Scope: Oji Holdings)

Dow Jones Sustainability Asia Pacific Index

July
Launched “nepia
nepi-eco Toilet
Paper Doublelength 2-ply 4
Rolls.”June

Oji has been selected since November 2020 as a constituent of the Dow Jones Sustainability Asia Pacific Index, one of the
Dow Jones Sustainability Indices (DJSI) selecting companies based on their outstanding performance on sustainability issues.

May

MSCI Japan Empowering Women (WIN) Index
Oji has been selected since June 2017 for MSCI Japan Empowering Women (WIN) Index, an ESG index established by MSCI
Inc. (Scope: Oji Holdings)“Eruboshi” certification received under the Act on Promotion of Women’s Participation and Advancementin the Workplace

April

On December 21, 2017, Oji was granted “Eruboshi” (Grade 3, the top grade) company certification by the Minister of Health,Labour and Welfare in recognition of its efforts to promote women’s participation and career advancement. (Scope: Oji Holdings)

FY2021 “Nadeshiko Brand”
On March 22, 2022, Oji was selected for the third time and for the second consecutive year by the Ministry of Economy, Tradeand Industry and the Tokyo Stock Exchange as “Nadeshiko Brand” companies as enterprises that are outstanding in terms of
encouraging the empowerment of women in the worksite. (Scope: Oji Holdings and Oji Management Office)2022 Certified Health and Productivity Management Organization Recognition Program
On March 9, 2022, Oji was recognized under the 2022 Certified Health and Productivity Management Organization Recognition Program (Large Enterprise Category), administered jointly by the Ministry of Economy, Trade, and Industry (METI) and the
Nippon Kenko Kaigi. (Scope: Oji Holdings and Oji Management Office)111

The Oji Group Integrated Report 2022

2021

Selected as a constituent of the
FTSE4Good Index Series and
FTSE Blossom Japan Index,
which are ESG investment
indexes.
Oji Asia Household Products
increased disposable diaper
processing machines, integrated
sites and started operation.
“Optimized transport box by using
automatic packing system ‘Carton Wrap’”awarded the FY2021 Logistics Grand Prize“SDGs Social Contribution Award,” 45th
Kinoshita Awards “Improvement andRationalization Category” and WorldStar
Competition 2022 “WorldStar Award”. (P45)
The Oji Group Integrated Report 2022

112

Public Relations and Investor Relations Dept., Corporate Sustainability Div.
7-5, Ginza 4-chome, Chuo-ku, Tokyo 104-0061 Japan
https://www.ojiholdings.co.jp/english/
Issued in December 2022