Corporate Officers (Oji Holdings Corporation)

Michihiro Nara

Toshihisa Takata

Representative Director of the Board
President and Group CEO

Independent Outside Director of the Board

Independent Outside Director of the Board

April 1975
June 2006
June 2009
April 2012

April 1978

April 1974
June 2004

April 1976
Joined Ministry of Foreign Affairs of Japan
August 2010 Ambassador Extraordinary and Plenipotentiary of Japan to Kenya
October 2010 Ambassador Extraordinary and Plenipotentiary ofJapan to Kenya, Eritrea, Seychelles, and Burundi
January 2013 Ambassador Extraordinary and Plenipotentiary of Japan
to Kenya, Eritrea, Seychelles, Burundi, and Somalia
August 2013 Ambassador in charge of Okinawan Affairs
May 2015
Ambassador Extraordinary and Plenipotentiary ofJapan to New Zealand, the Cook Islands, and Samoa
June 2016
Ambassador Extraordinary and Plenipotentiary of Japanto New Zealand, the Cook Islands, Samoa, and Niue
March 2017 Ambassador Extraordinary and Plenipotentiary ofJapan to New Zealand, the Cook Islands, and Niue
October 2018 Retired from office
June 2019
Independent Outside Director of the Board,
the Company (to the present)

Joined the former Honshu Paper Co., Ltd.
Corporate Officer, the Company
Director and Executive Officer, the Company
Representative Director and Executive Vice
President, the Company
October 2012 Representative Director of the Board andExecutive Vice President, the Company
January 2015 Representative Director of the Board,
President and CEO, the Company
April 2019
Representative Director and Chairman of theBoard, the Company
April 2021
Representative Director and Chairman of theBoard, the Company (to the present)

Hiroyuki Isono

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

Director of the Board
Senior 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 2019

Joined the former Honshu Paper Co., Ltd.
Corporate Officer, the Company
Executive Officer, the Company
Director and 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)

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 (to the present)

Kazuhiko Kamada

Director of the Board
Senior Executive Officer
President, Forest Resources and Environment Marketing COMPANY
President, Printing and Communications Media COMPANY
President, Oji Green Resources Co., Ltd.

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

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)

May 2013
April 2014

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 (to the present)

June 2015
June 2015
June 2016

Sachiko Ai

Seiko Nagai

Independent Outside Director of the Board

Independent Outside Director of the Board

April 1989

April 1983
April 2008

June 2016
April 2019

June 2020
April 2021

Joined The Mitsubishi Trust and Banking Corporation(currently Mitsubishi UFJ Trust and Banking Corporation)
Executive Officer, General Manager, Corporate Consulting
Division, Mitsubishi UFJ Trust and Banking 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 and Banking Corporation (to the present)
Managing Executive Officer, Group Deputy CAO,
Mitsubishi UFJ Financial Group, Inc. (to the present)

Tomihiro Yamashita

Nobuko Otsuka

Audit & Supervisory Board Member

Audit & Supervisory Board Member

April 1982
June 2010

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)

Joined the Company
General Manager, Internal Audit Office, theCompany
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)

Mikinao Kitada
Independent Outside Audit & Supervisory Board Member

Shigeki Aoki

Noriko Sekiguchi

Director of the Board
Executive Officer
Deputy General Manager, Corporate Governance Division
In charge of Innovation Promotion Division
President, Oji Engineering Co., Ltd.

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

Independent Outside Audit & Supervisory Board Member

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

Oji Group Integrated Report 2021

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)

Hidero Chimori
Independent Outside Audit & Supervisory Board Member
April 1983
June 2002
June 2006
June 2016
June 2019
June 2021

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 Director of the Board,
the Company (to the present)

Financial Data & Corporate Data

April 1976
Appointed as public prosecutor
January 2012 Superintendent Public Prosecutor of Osaka
High Public Prosecutors Office
January 2014 Retired from office
March 2014 Registered as an attorney-at-law
June 2014
Outside Director, Sharp Corporation
Independent Outside Audit & Supervisory
Board Member, the Company (to the present)
August 2014 Outside Auditor & Supervisory Board
Member, ASKUL Corporation (to the present)
June 2015
Outside Director, Yokogawa Bridge Holdings Corp.
June 2016
Outside Audit & Supervisory Board Member, Sojitz Corporation
June 2020
Outside Member of the Board of Directors (Audit& Supervisory Committee Member), Mizuho
Trust & Banking Co., Ltd. (to the present)

Koichi Ishida

April 1978
October 2012
April 2014
April 2016
June 2018

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)

Sustainability Strategy

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

June 2014

Management Strategy

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.

Business Strategy

Yoshiki Koseki

April 1977
April 2010
April 2012
June 2012
October 2012

65

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 (to thepresent)

What the Oji Group Aims For

Masatoshi Kaku

Representative Director and Chairman of the Board
Chairman of the Board

About the Oji Group

Susumu Yajima

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) (tothe 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)

Oji Group Integrated Report 2021

66

Message from the Chairman

Promoting Sustainability Strategy

Representative Director andChairman of the Board● Monitoring the environment, human rights, and occupational

Susumu Yajima

to ensure business continuity overseas. We have continuously cultivated our sense of corporate ethics that “a company is a public institution for society” and, as such,
believe that fulfilling our supply responsibilities is our mission. During its nearly 150-year history, the Oji Group has
experienced many other emergencies in the past. Eachtime it faced an emergency, our Group endeavored to remain a company that is needed by society. This is why ourGroup exists today. A company’s true nature reveals itself
in times of emergency. In this context, we recognize thatthe importance of corporate governance, including BCP
and risk management, has increased further.

Issues and Future Initiatives in Corporate Governance● Recognizing corporate governance issues for sustainable growth● Ensuring transparency and soundness through advisory

bodies (Nomination Committee and Compensation Committee)● Effectiveness of governance and utilization of

Reforming the Board of Directors based on Revision of the Corporate Governance Code67

Oji Group Integrated Report 2021

knowledge of Independent Outside Officers with a diverse
range of backgrounds is crucial for our continued evolution and existence in the future, and we have reinforced
and increased the number of Independent Outside Officers. We expect them to give us honest opinions that areuncomfortable to hear.
Moreover, we have published a skill matrix since last
fiscal year’s Integrated Report. It is a prerequisite for Directors to have broad and comprehensive experience andknowledge. At the same time, they must also have theirown fields of expertise and specialty as their strengths.
Moreover, the effectiveness of the Board of Directors as awhole will be enhanced by capitalizing on and seamlessly
combining individual expertise, without placing excessive
weight on members in specific fields.
Going forward, the Board of Directors will utilize its diverse
range of knowledge and experience in striving to further
strengthen supervisory functions, ensure risk management, and enhance the value of the Oji brand from a broad
perspective.

Oji Group Integrated Report 2021

Financial Data & Corporate Data

number of Independent Outside Directors and Independent Outside Audit & Supervisory Board Members●Specifying skills that the Board of Directors should
possess and publishing the skill matrix● Functions required of the Board of Directors in the
future, and expected changes
Firstly, I would like to say that the increase in the numberof Independent Outside Officers (all of the Company’s
Outside Directors and Outside Audit & Supervisory Board
Members are Independent Officers) is not only for the regulatory purpose of complying with the revision of the Corporate Governance Code. I mentioned earlier that thereason why the Oji Group exists today is because we haveremained a company that is needed by society. In otherwords, we have constantly continued evolving into whatsociety expects us to be. In today’s rapidly changing
world, a board of directors that consists of a highly homogenous group of people will narrow our view, and runs
the risk that we might critically misunderstand what society expects us to be. Therefore, we believe that the

Sustainability Strategy●New management structure with increase in theexternal perspectives as seen from the position of
Chairman of the Board of Directors● Governance themes to strengthen in the future,
response to them and the establishment of systems
The fostering of a sense of corporate ethics is essential forthe sustainable growth of the Oji Group. Regardless of
how many codes of conduct or rules we establish, if employees, who are supposed to comply with them, do notthink and act with a strong sense of corporate ethics, they
will deviate from such codes of conduct and rules. In other words, there is no sustainable corporate growth in a
corporate culture that lacks ethics. It is necessary for eachand every employee to internalize a sense of ethics as agood citizen. We will devote our efforts to creating a corporate culture to achieve this.
In addition, the Nomination Committee and Compensation Committee, which are advisory bodies to the Boardof Directors, are composed of two internal Directors (theChairman and the President) and four Independent Outside Officers, with the outside members accounting forthe majority, thereby ensuring transparency and soundness. The Independent Outside Officers do not only participate in the meetings of the Board of Directors, but arealso provided with opportunities for preliminary briefings
on individual issues, participation as observers in theGroup Management Meeting where management is executed, and site visits both inside and outside Japan in order to strengthen sharing of information and gain anunderstanding of approaches taken by the internal Directors and Corporate Officers. We are always open to theiropinions that come from an external perspective. For example, in response to a suggestion that there is room for
improvement in diversity of the Board of Directors, wehave increased the number of female Independent Outside Officers to three. Another issue is pointed out, thereinforcement of governance in our overseas operations
alongside the global development of business. To address
this, the internal audit division and the safety management
division are strengthening their response to overseas operations.
Last but not least, the Oji Group’s operations have also
been greatly impacted by the COVID-19 pandemic. However, we are not simply hunkering down to weather thestorm. Risk and opportunity are two sides of the samecoin, and we take this emergency as an opportunity tosteadily progress toward being an even more resilient corporate group that does not waver in a crisis. I hope you
will be looking forward to it. I would like to ask for thecontinued support of all our stakeholders.

Management Strategy

countermeasures required in an emergency●Fulfilling supply responsibilities supporting lifestyleand industry while ensuring thorough infection
control (BCP response)
During the COVID-19 pandemic, I believe that many people have been reminded of the essential aspect of paper
manufacturers. Precisely because it is an emergency, thetop priority is providing a stable supply of safe and secure
products to maintain people’s lives as in normal times. In
particular, with a strong awareness of the importance ofcorrugated containers, which are the foundation for transporting daily necessities, we have made our utmost efforts

Business Strategy●Speedy management decisions andWe of course have already begun taking concrete steps toaddress this issue as the top priority of our management.
In September 2020, we formulated Environmental Vision
2050 to realize Net Zero Carbon by 2050 and Environmental Action Program 2030 as a milestone in order toachieve our Vision, and we endorsed the TCFD recommendations in December 2020. The Oji Group is extremely
fortunate as its businesses can contribute to a sustainable
society in their own right through the global expansion ofa sustainable business model: “resource circulation
throughout the value chain.” In the future, we will continue
to accelerate the expansion of our overseas forest plantations and actively promote forest management.
Furthermore, based on a recognition that promoting
inclusion & diversity is essential for our evolution and continued existence, we are developing measures related tohuman resources. Perhaps because of our history of repeated mergers, the Oji Group has a culture of accepting
outside human resources regardless of their background,
and we will continue to actively recruit outstanding humanresources regardless of their past careers or nationality
and increase diversity. We will also continue to send young
employees who bear the future of the Oji Group to workplaces outside Japan to foster relationships of trust withlocal people through collaboration and to develop truly
globally minded human resources who can respect thevalues of the countries they work in.

What the Oji Group Aims For

Reaffirming the Importance of Corporate Governance during the COVID-19 Pandemic

safety based on the Partnership Procurement Policy● Response to TCFD, and formulating and implementing
Environmental Vision and Environmental Action Program● Inclusion & diversity, and measures related tohuman resources
Our sense of corporate ethics that “a company is a public
institution for society,” which we have cultivated throughout our long history, is the foundation of the Oji Group’s
sustainability strategy. We are promoting ESG management based on the understanding that we should notseek predatory corporate profits, but rather remain a company that is truly needed by society, which will ultimately
lead to our sustainable development.
In terms of raw materials procurement, the Oji Grouphas 3,000 suppliers both in Japan and overseas. Basedon the Oji Group Partnership Procurement Policy, we engage in responsible procurement with consideration for
the environment, human rights, and occupational safety.
With the cooperation of our suppliers, we will monitor
and assess risks, and fulfill our responsibility to the environment and society not only at the Oji Group but also
throughout our supply chain.
With regard to the environment, as countermeasures toglobal warming become an urgent issue around the world,
the growing attention is being drawn to the Oji Group,
which owns the most abundant forest resources in Japan.

About the Oji Group

Governance Functions as Seenfrom the Position of the Chairmanof the Board

68

Corporate GovernanceNomination Committee and Compensation Committee
Basic Concepts, Framework, and Operational Policies
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

report.html

Corporate Governance Structural Diagram
General Meeting of Shareholders
Audit & Supervisory Board(Auditing firm)

Audit & Supervisory Board Members’ Office

Accounting
auditsDetermining the proposals of appointment,
dismissal and refusal of reelection
Judgement of appropriateness ofaccounting audits
Cooperation

Auditing

Offering
opinions

Board of Directors

Reporting

Cooperation

Nomination Committee
Compensation Committee

Key issues discussion and reporting

Representative Director and Chairman of the Board

Susumu Yajima

Representative Director of the Board,
President

Masatoshi Kaku

Independent Outside Director

Michihiro Nara

1/1

2/2

Independent Outside Director

Toshihisa Takata

1/1

2/2

Independent Outside Director

Sachiko Ai

1/1

1/1

Seiko Nagai——

Independent Outside Director

Nomination Committee

AttendanceCompensation Committee

1/1Committee Chair

2/2

1/1

(Took office in June 2021)

AttendanceCommittee Chair

2/2†Concerning Independent Outside Director Sachiko Ai’s attendance at meetings of the Board of Directors, the scope of the total number of meetings includes only those meetings held after her

appointment on June 26, 2020.

Policy on Determination of Director Compensation and Total Compensation Amount
Policy on Determination of Director Compensation
Oji Holdings has designed its compensation programswith an emphasis on the roles performed by the Director
compensation program such that the Board of Directors
promotes sustainable growth and increasing medium- tolong-term corporate value of the company and pursues
enhanced profitability and capital efficiency. The specificsof the Director compensation program and determination
policies are set forth in the Fundamental Policies on Corporate Governance. Director compensation comprises
base compensation, bonuses that reflect short-term performance, and stock-based compensation that reflects
medium- to long-term improvement in corporate value.

Determinations are made by the Board of Directors basedon 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

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

Reporting
Auditing

Appointment, dismissal, and supervision

Representative Director of the Board, President (Group CEO)

Direction
Direction and supervisionInternal Audit Dept.

Holdings Management MeetingGroup Management Meeting

Auditing

Direction and supervision

Key issues discussion
and reporting

Corporate Officers

Each COMPANY

ReportingCorporate Governance Div.
Environmental Management Dept.
Safety Administration Dept.
Corporate Compliance Dept.
Legal Affairs Dept.
Public Relations and Investor Relations Dept.
General Affairs Dept.

Other Business Companies

Fixed compensation

Performance-linked compensation
Bonuses

Stock-based compensation

Total

Total

Director, Chairman of the Board

50%

25%

25%

50%

100%

Director of the Board, President

50%

25%

25%

50%

100%

Director of the Board, Senior Executive Officer

50%

25%

25%

50%

100%

Director of the Board, Executive Officer

50%

25%

25%

50%

100%

Independent Outside Director

100%

—

—

—

100%

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

Financial Data & Corporate Data

Reporting

Position

Sustainability Strategy

ReportingAccounting Auditor

Appointment
and dismissal

NameManagement Strategy

Outside Directors) and the Audit & Supervisory Board
consists of five Audit & Supervisory Board Members (including three Independent Outside Audit & Supervisory
Board Members), and Susumu Yajima, Representative Director and Chairman of the Board, chairs the Board of
Directors. In FY2020, attendance of Independent Outside
Directors and Independent Outside Audit & Supervisory
Board Members at the Board of Directors meetings (14meetings held) was 97.4% and attendance of Independent Outside Audit & Supervisory Board Members at the
Audit & Supervisory Board meetings (14 meetings held)
was 100%.

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 and clarifies
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 andthe Audit & Supervisory Board. The Board of Directors
consists of twelve Directors (including four Independent

Position

Business Strategy

Corporate Governance Structures

Structures of the Nomination Committee and the Compensation Committee and their meetings held in FY2020

What the Oji Group Aims For

it submits to Tokyo Stock Exchange, on its official website.
➡https://investor.ojiholdings.co.jp/en/ir/library/governance_

Appointment
and dismissal

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 and submit recommendations to
the Board of Directors.

Corporate Governance Report
The Oji Group posts its Corporate Governance Report, which

Appointment
and dismissal

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, and theCompensation Committee analyzes the effectiveness ofand deliberates the evaluations of the Board of Directors.
With the increase of one Independent Outside Director in
June 2021, the Committees consist of two internal Directors and four Independent Outside Directors, with the Independent Outside Directors representing more than halfof the Committees members.

About the Oji GroupThe Oji Group established the Oji Group Corporate Codeof Conduct based on the fundamental values and philosophy that have been handed down since the Group’s
foundation and has undertaken business activities with anawareness of its role as a corporate member of society
and a strong sense of ethics throughout the Group. Goingforward, 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 of corporate
governance as a priority management issue and building
trusting relationships with diverse stakeholders.

Group Companies

69

Oji Group Integrated Report 2021

Oji Group Integrated Report 2021

70

Corporate GovernanceTotal amount of compensation for each officer category, total amount of compensation, etc. by type, and number of eligible officers (FY2020)

Officer category

Total amount of compensation, etc. by type (million yen)(million yen)

Fixedcompensation

Directors (excluding Independent Outside Directors)

524

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

51
76

Performance-linked compensation

Number of
eligible officers

Bonuses

Stock-based compensation(persons)

239

169

116

12

51

—

—

2

76

—

—

Independent
Outside Director

6

Personnel and Purchase andlabor management procurement Internationality

ESG

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

Michihiro Nara

Attended 13 of 14
meetings

Fulfilled the role expected of him by making statements concerning the Company’s management from an independent standpoint, from an attorney’s professional perspective, andbased on his extensive experience and knowledge

Toshihisa Takata

Attended 14 of 14
meetings

Fulfilled the role expected of him by making statements concerning the Company’s management from an independent standpoint and based on his rich experience and wide-ranging knowledge as a diplomat

Sachiko Ai

Attended 10 of 11
meetings

Fulfilled the role expected of her by making statements concerning the Company’s managementfrom an independent standpoint and based not only on her high-level expertise in the financial field
but also on her wealth of knowledge of a broad range of domestic and international business trends

Seiko Nagai(Took office in June 2021)(92.9%)(100%)(90.9%)—†Concerning Independent Outside Director Sachiko Ai’s attendance at meetings of the Board of Directors, the scope of the total number of meetings includes

only those meetings of the Board of Directors held after her appointment on June 26, 2020.

Main activities of Independent Outside Audit & Supervisory Board Members in FY2020
Attendance at Board of
Attendance at Audit &Directors meetings Supervisory Board meetings

Category

Name

Independent Outside Audit &Supervisory Board Member

Makoto Katsura

Attended 14 of 14
meetings

Attended 14 of 14
meetings

Made statements based on his extensive experience andwide-ranging knowledge as a diplomat

Independent Outside Audit &Supervisory Board Member

Mikinao Kitada

Attended 14 of 14
meetings

Attended 14 of 14
meetings

Made statements based on his extensive experience andwide-ranging knowledge as a public prosecutor and attorney

Independent Outside Audit &Supervisory Board Member

Norio Henmi

Attended 10 of 10
meetings

Attended 10 of 10
meetings

Made statements based on his extensive experience and wide-ranging
knowledge from attorney’s professional perspective

Independent Outside Audit &Hidero Chimori
Supervisory Board Member (Took office in June 2021)——

Independent Outside Audit & Noriko Sekiguchi
Supervisory Board Member (Took office in June 2021)——(100%)(100%)(100%)(100%)(100%)(100%)

Statements at meetings†The status of Independent Outside Audit & Supervisory Board Member Norio Henmi’s attendance at Board of Directors’ Meetings and Audit & Supervisory

Susumu Yajima

Board Meetings shown above is based on the number of such meetings held through the date he left office due to his passing away.

Masatoshi Kaku
Yoshiki Koseki
Hiroyuki Isono

Management Strategy

Sales andmarketingAttendance at Board of
Directors meetings

Business Strategy

Corporate Finance and Manufacturing and Research andmanagement accounting
technologies development

Independent
Outside Director

Name

What the Oji Group Aims For

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 Nominating Committee consists of four Independent Outside Directors,
the Chairman and the President, and the Board of Directors receives reporting from the Committee, deliberates
and makes decisions.

Directors’ Skill Map
The capabilities of our Directors are as follows:
Director

Independent
Outside Director
Independent
Outside Director

Policy and Process for Nomination of Directors and Audit & Supervisory Board Members
PolicyAt Oji Holdings, the Fundamental Policies on Corporate
Governance stipulate as a Director nomination policy thatcandidates be nominated for Directors who possess excellent character and insight and who may contribute to
the sustainable growth as well as the increase of medium- to long-term corporate value of the Group, and thatthe Board of Directors shall comprise Directors who takenotices on a balance between diverse knowledge andexpertise concerning the business operated by 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 excellent character and insight as well as high level of
specialization and extensive experience.

Category

About the Oji Group

Total amount ofcompensation

Main Activities of Independent Outside Directors in FY2020

Fumio Shindo

Effectiveness Evaluation of the Board of Directors

Kazuhiko Kamada

Shigeki Aoki
Michihiro Nara Independent Outside Director
Toshihisa Takata Independent Outside Director
Sachiko Ai

Independent Outside Director

Seiko Nagai(Newly appointed)
Independent Outside Director

Independent Outside Officers
Status of Activities by and Reason for Appointment
of Independent Outside Officers
There are four Independent Outside Directors and three Independent Outside Audit & Supervisory Board Members
at Oji Holdings. All Independent Outside Officers attend
Board of Directors meetings, and the briefings that are held
twice each month in principle and are conducted by the
Director responsible for the Corporate Governance Division
regarding Management Meeting agendas and planned
Board of Directors deliberation matters. In addition, the71

Oji Group Integrated Report 2021

four Independent 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.

Committee, in which Independent Outside Directors participate, and then deliberated by the Board of Directors
based on the analysis results.
For example, we recognized issues such as room for
improvement in the structure of the Board of Directors,
which places importance on diversity, and decided to implement countermeasures.
An overview of the findings in the analysis and evaluation of the Board of Directors of FY2020 conducted inand after April 2021 has been disclosed separately in the
Corporate Governance Report.

Policy for Strategic Shareholding
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 strategy for the
purpose of business alliances and strengthening andmaintenance of long-term and stable relationships withbusiness partners. The Board of Directors specificallyexamines every year whether the purpose of strategic
shareholding is appropriate and whether the benefits andrisks associated with strategic shareholding are commensurate with the cost of capital to verify the appropriateness of the holding. We sell shares properly andappropriately if the rationality for holding them has diminished to reduce strategic shareholding.

Oji Group Integrated Report 2021

Financial Data & Corporate Data

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

Sustainability Strategy

Koichi Ishida

72Compliance

The Oji Group Behavior Standard

73

Oji Group Integrated Report 2021

Compliance with Laws and Regulations
Related to the Anti-monopoly Act and the
Act Against Delay in Payment of
Subcontract Proceeds Etc., to
Subcontractors
Prohibition of Unfair Competition
Proper Import/Export Management
Responsible Raw Materials Procurement
Disclosure of Management Information
Prohibition of Insider Trading
Ensuring Safety and Health in the Workplace
Prohibition of Discrimination and Protectionof Human Rights
Prohibition of Harassment
Fulfillment of Responsibilities and SelfDevelopment

Preparing for Various Risks such as Natural
Disasters
Compliance with Company Rules
Appropriate Records and Accounting
Maintenance of Company Assets
Thorough Information Management
Appropriate Use of Information Devices andCommunication Means
Prohibition of Conflicts of Interest
Prohibition of Private Political Activities, Etc.
in the Workplace
Open Working Environment

General Manager,
Corporate Governance Division,
Oji Holdings Corporation
ReportingInstructions

Internal desk

ReportingDirector of the Board, President,
Oji Holdings Corporation

Instructions
Discussion

Audit & Supervisory Board Member,Oji Holdings Corporation

Notification of
investigation results

External desk

Notice of details of
Law firm
Corporate Compliance Department consultations or report (Incases where the consulting orof Oji Holdings Corporation
reporting person requests
anonymity, notice is provided
Request foranonymously)
investigation
Improvements,
Consultations andand Reporting guidance,
Reports
cooperation
recommendations
Consultations
Internal investigation committee and external
Responseandexperts (Established as necessary)Company that is the subject ofReports
Confirmation of facts and determination of causes
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>

Financial Data & Corporate Data

Compliance with Relevant Business Laws
Ensuring Safety in Business Activities
Practice of the Oji Group Environmental
CharterActing with a Sensible Manner
Wholesome Relationship with Politics andGovernment
Severance of Relationships with Antisocial
Groups and Organizations
Corporate Activities that Contribute to theRealization of a Sustainable Society
Coexistence with International Society
Seeking a Relationship of Trust with
Customers
Maintenance of an Honest, Wholesome
Relationship with Business Partners

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.

Anti-Corruption Initiatives
The Oji Group Behavior Standard expressly provide for“wholesome relationship with politics and government”
and “maintenance of an honest, wholesome relationshipwith business partners”. In order to materialize this, wehave established Group Corruption Prevention Regulations and their guidelines relating to bribery (offering andaccepting benefits) and performing internal audits of bribery compliance. An internal audit of the compliance status was implemented as a stricter standard for thereceipt of benefit has been imposed on domestic companies since the fiscal year started in April 2020.

Sustainability Strategy

I. Toward the materialization of the spirit of the Oji Group Corporate Code of Conduct, the Oji Group Behavior Standard isadopted as a standard to be followed in the daily activities of all management and employees as a member of international society.
II. All management and employees should recognize responsibility for following this Behavior Standard and must not violate it.

Sharing the Revised 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 revised in October 2020. In addition,
we have separately prepared teaching and explanatory
materials to utilize them at a compliance meeting held at
each worksite. Moreover, we translate the education materials into 12 languages for overseas employees in order
to disseminate the Oji Group Corporate Code of Conduct
and the Oji Group Behavior Standard and encouragethem to practice the Standard.

In FY2020, we prepared unique teaching materials (see the above image)of the Antimonopoly Act e-learning for the Procurement divisions, which
was prepared for the Sales divisions in the past, and 1,260 eligible employees participated in the e-learning course.

Management Strategy

the Oji Group Corporate Code of Conduct”

Activities for Raising Compliance AwarenessNumerous opportunities are created for employees to acquire 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 suchas the Subcontract Proceeds Act, the Antimonopoly Act,and the prevention of bribery. Also, the Compliance Newsis issued every month to introduce current internal and external compliance topics, provide teaching materials in quiz
format, explain the Oji Group Corporate Code of Conduct
and Oji Group Behavior Standard, and inform employees
about the whistleblowing system.

Business Strategy

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.
Direction that the Oji Group will takeCompliance with Laws and Regulations and Fair Business Activities“Creation of Innovative Value”
Developing a Rewarding Work Environment with Consideration“Contribution to the Future and the World”
Management
for Safety and Health“Harmony with Nature and Society”
Philosophy
Supply of Safe, Useful Products and Services
Guidelines for Group companies
Addressing Environmental Issues“Promotion of Corporate activities based on
Contribution to the Realization of a Sustainable Society
The Oji Grouphigh ethical principles appropriate for an
Corporate Code of Conduct
Respect for Human Rights
organization that enjoys the trust of society”“Contribution to the genuine enriched society”
Communication with Society and Participation in
Social Contribution Activities
Action guidelines for all management
Coexistence with International Society
and employees of the Oji Group
Promotion of Crisis Management
The Oji Group“Behavior standard to be adopted in the daily
activities in order to materialize the spirit of
Behavior Standard

Measures for Promoting Compliance

What the Oji Group Aims For

The Oji Group Corporate Code of Conduct

The Corporate Compliance Department of Oji Holdings draws up policies and measures for promoting 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 in promotion activities and work to instill compliance awareness throughout the Group.

About the Oji GroupThe 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, but they were revised in FY2020 to reflect the Management Philosophy and change of thebusiness environment including the United Nations SDGs, to make them more in line with the demands of the times.
The alteration or abolition of the Oji Group Corporate Code of Conduct and the Oji Group 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 Group. The Code of
Conduct and the Behavior Standard have been translated into the respective languages of each country in which theGroup has its business sites and are made known to all officers and employees that belong to the Group. All officers andemployees 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 bereported or consulted with a supervisor or the compliance office of the company or worksite, or the Corporate Ethics
Helpline (Group internal whistleblowing) desks.

(Report Notification Sheet generated with QR code can be used from April 2021 to further improve the convenience of the whistleblowing desks.)Oji Group Integrated Report 2021

74

Risk Management

Risk Management Structure

Business Line
Risks

Occupational
Safety and
HealthWater

Risk Assessment of Existing Businesses
Existing businesses and projects are subject to regular audits by the Internal Audit Department, Safety Administration
Department, and Environmental Management Department.
Where a risk is found, guidance for improvement is provided and shared across the Group.

We conduct risk assessment by confirming our safety and health policies, objectives, and management structure, the occurrence of occupational
accidents resulting in incapacity for work lasting at least one day, including accidents resulting in deaths or serious injuries, and countermeasurestaken against such injuries, daily safety and health activities such as safety patrols and safety training, and safety of machines, equipment, chemicals, work environment, work methods, and others, not to mention the status of compliance with laws and regulations related to safety and health.
To assess and identify water-related risk, we use WRI Aqueduct* and conduct due diligence on precipitation, drought,
water disasters, water-related laws and regulations, and other elements of the area where we plan to launch a new project or business.
*Global maps and information indicating status of water risks in each region announced by the World Resources Institute (WRI)

Disaster risks, occupational accident risks, information system risks, cyber security risks, product liability risks,
intellectual property risks, environmental risks

Employment and personnel risks, risks of misconduct and criminal conduct internally and externally, legal risks,
risks concerning information leaks, production safety risks, production facility risks, raw materials purchasing risks, and others

Biodiversity

In the planning phase of a new business or M&A, we collect information by meeting with local governments andenvironmental NGOs of the respective areas, and assess biodiversity risk.

Human Rights

We conduct risk assessment to see whether consideration is given to basic human rights and check for elements that have a negative impact on humanrights, with a special focus on child labor, labor management, the rights of indigenous people, labor-management relationships, and other factors.

Anti-Corruption

We conduct risk assessment of our business partners as well as our agents to confirm that they do not engage in any
bribery, illegal trade, or misconduct.

Business Strategy

Group-WideRisks

risk occurs, the Board of Directors makes a decision after
deliberations within the Group Management Meeting.
The Director and the General Manager of the Corporate Governance Division is responsible for the risk management of the Oji Group. The Corporate Governance
Division works to ensure the effectiveness of the risk
management of the overall Group.

Risk Assessment of New Businesses
The Oji Group screens investments and loans, such as
those for new businesses and projects, not only by examining economic aspects but also from the viewpoint of ESG(environment, social, governance) by following the Oji Group
Corporate Code of Conduct, the Oji Group Behavior Standard, the Oji Group Partnership Procurement Policy, andother criteria.

What the Oji Group Aims For

The Oji Group has identified Group-wide and businessline risks within the execution of business by categorizing
risks in all of the assets it owns, both tangible and intangible, in accordance with the Group Risk Management
Regulations, as shown below. Responses to risks are implemented by the responsible management and support
departments.
The Board of Directors supervises the enhancement
and implementation of risk management. When a new

Risk Assessment
About the Oji Group

Under the risk management structure developed and supervised by the Board of Directors, the Oji Group has establishedthe Group Risk Management Regulations, and the Corporate Governance Division manages the risks common to theoverall Group in a centralized manner. A responsible officer and division are assigned for each type of risk, enabling management to be informed of the risk and to respond quickly and appropriately.
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 the steady development of our businesses.

Practicing the Oji Group Partnership Procurement Policy

Risk Management Structure
ReportingInternal Audit Dept.

Auditing

Board of Directors

Development and Supervision
Reporting

Key issues discussion and reporting

Group Management Meeting

Development and Supervision

ReportingDirector, Oji Holdings
General Manager,
Corporate Governance Division
Safety Administration
Dept.

Environmental
Management Dept.

Corporate Compliance
Dept.

General Affairs Legal Affairs Public Relations and
Dept.
Investor Relations Dept.
Dept.

Innovation Promotion
Division

COMPANY Risk Management Department
Group Companies

Oji Group Integrated Report 2021

Auditing

The Oji Group positions various information obtained
during its business activities as important assets requiredfor business continuity. To strengthen our response to theever-evolving IT environment, we have established theGroup Information System Usage and Risk Management
Regulations, and we have developed the promotion management system for preventing leakage of confidential information, and for cyber attacks and disasters.
The Oji Business Center, as a department that oversees our information system risk management, regularly
audits the compliance status across the Group and reports the results to the Group Management Meeting. In
addition, to educate employees, we regularly perform educational activities in company newsletters and provide
e-mail training utilizing external experts to deal withphishing e-mails that are becoming more sophisticatedevery day.
In terms of facilities, we are building a backup system
for internal servers in external data centers as part of our
BCP.
In FY2020, we strengthened cyber security measures
as the network was re-constructed, and revised regula-

Information Security Structural Diagram
Group Management Meeting
ReportingOverseeing department
Oji Business Center
Request
Guidance
andPromotion Managers Meeting andreportingsupportPromotion teams
Group companies

tions to respond to the spread of teleworking in times of
COVID-19. We will work to make sure that these measures will take hold and at the same time implement themat overseas group companies to further strengthen ourefforts to improve information security.

Oji Group Integrated Report 2021

Financial Data & Corporate Data

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

75

Audit &
Supervisory Board

Sustainability Strategy

Auditing

Measures for Information Security

Management Strategy

We request our raw material suppliers all over the world to implement the Oji Group Partnership Procurement Policy, assess risks, and monitor them to reduce risks associated with the environment, human rights, and occupational safety.
p. 90)(Responsible Raw Materials Procurement

76

BCP and Measures against COVID-19

Independent Outside Directors’ Roundtable Discussion

The Oji Group’s BCP Initiatives

Recommendations from an External Perspective to Support Sustainable Growth

EmergencyResponse
To ensure a prompt initial response to emergencies, wehave established a system for reporting and collecting information around the clock. 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 takeprompt measures to continue supplying products to ourcustomers.
With the safety of employees as our highest priority,
we implement measures that enable employees to suspend outings and outdoor works, postpone attendance
at work, leave work early, or avoid returning home in cases where it would be dangerous to do so.

An Essential Products Supplier that Supports Daily Life

Corrugated bed

77

Oji Group Integrated Report 2021

Seiko Nagai

Sachiko Ai was appointed as a
Director at Oji Holdings in June
2020. She has wide-ranging
knowledge of business trends inJapan and overseas as well as a
wealth of high-level expertise in thefinancial sector through her businessexperience at a major trust bank.

Seiko Nagai was appointed as a Director at Oji
Holdings in June 2021. After working as a manager at a major airline company, she is currently
involved in education as a college professor andhas high-level expertise and wide-ranging
knowledge gained through customer service andeducational activities. She is serving concurrently
as an outside director at other companies as well.

Evolutions in the Oji Group’s Governance
SystemNara The appointment of Ms. Nagai has increased thenumber of Independent Outside Directors by one andbrought the ratio of Independent Outside Directors up to
one third of the 12 Directors. This expansion is based on
the revision of the Corporate Governance Code, and I was
surprised by the speed of this response. In recent years,
the Oji Group has been increasingly aware of governanceand creating a system for prompt decision-making. I feelthat both are showing effects.
Takata When I joined the Board of Directors two years
ago, two of the 13 Directors were Independent Outside Directors, and all were men. However, we welcomed Ms. Ai
on the Board last year as the first female Independent Outside Director, followed by Ms. Nagai this year. The Board of
Directors has made steady progress in terms of diversifying
its membership.
Ai I believe that diversity will become more important in
the future in order to overcome crisis and survive as a resilient company in a rapidly changing environment. I hope that
we, members of a Board of Directors with diverse values
and experience, will contribute to the sustainable growthand enhancement of corporate value of the Oji Group.
Takata With regard to the operation of the Board of Directors, I understand that all Directors are required to makeactive efforts while exploring the directions for what kind of
discussions should be promoted to further strengthen theeffectiveness of management supervision. There have beenenhancements in various types of follow up measures, suchas the provision of information for us at briefings for Outside
Officers. Participating in the Management Meetings as observers has also been a useful opportunity.
Nara At the same time as the enhancement of the governance system I mentioned earlier, we have seen increasingawareness of compliance and a greater sense of speed in
responding to social changes. In this context, the Board of
Directors has maintained the flexibility to steadily incorporate outside opinions into its operations, which has led tomore active discussions. As Mr. Takata said, the briefings
for Outside Officers have been functioning effectively, andparticipation in the Management Meetings as observers is
one example showing that the opinions and requests of
Outside Officers have been achieved.
Nagai I feel very honored to be a part of such positivechanges and to be serving as an Independent Outside Director from this fiscal year. Based on my experience at anairline and communication with younger generations
through my university teaching career, I have come to believe it is important for people with different nationalities
and backgrounds to respect each other and maximize
their individual strengths. I would like to provide a newperspective for the Oji Group’s management and play apart in its diversity.
Ai I expect the increase in the number of female Independent Outside Directors will lead to greater diversity, which
will in turn lead to more effective monitoring of management
and recommendations, and more in-depth discussions at
the Board of Directors meetings.

Oji Group Integrated Report 2021

Financial Data & Corporate Data

Preparations Against Further Spread, and Other Natural Disasters
We provide various corrugated container products, such as corrugated beds to evacuation centers, etc. for earthquakes, heavy rains,
typhoons, and other natural disasters. We proposed the utilization ofcorrugated partition walls to the national and local governments, as
they can be in urgent need of appropriate infection prevention measures in times of COVID-19. In addition, we participate in joint drills forsetting up evacuation centers and support various disaster-prevention related matters.
Currently we have concluded a disaster prevention agreementwith 122 local governments.

Sachiko Ai

Toshihisa Takata was
appointed as a Director at Oji
Holdings in June 2019. As adiplomat, he served asambassador to New Zealandand other countries. He has
extensive international experience and expertise.

Sustainability Strategy

Continuing Business Activities to Maintain Supply Chain under Lockdown
Malaysia acknowledges corrugated containers, disposable diapers, and printing and processing plants as a part ofthe supply chain of essential major industries to maintain the people’s lives under lockdown. The manufacturing
sites of the Oji Group in the country have been making constant efforts to continue its business operations while
thoroughly implementing infection prevention measures under strict restrictions.
Also in Brazil, we have been permitted to continue its operations as an essential business amid increasing positive cases. We continue the production while minimizing impacts through not only temperature-measuring, mask
wearing, disinfection, and avoiding the Three Cs (crowding, close contacts, confined spaces) but also halving the
maximum number of passengers of the private commuter bus, increasing the number of buses, and coordinating
the operation schedule in detail.

Toshihisa Takata

Management Strategy

The Oji Group supplies daily essential products in all over the world, such as tissue paper, toilet rolls, face masks
and other hygiene materials as well as the corrugated containers that support logistics services, folding carton
products, and printing and communication paper that conveys information. Even in times of COVID-19, while thoroughly implementing infection prevention measures, we carry on production activities to maintain social life.

Michihiro Nara
Michihiro Nara was appointed asa 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.

Business Strategy

Building a Group Disaster Control System
We have established the Group Disaster Control Office asa permanent organization and formulated rules on the reporting of disaster and accident information, thereby establishing a system for obtaining the latest information
promptly. We also share information about the causes ofdisasters and accidents, and other information across theGroup, and work to minimize damage.

Implementation of Regular Safety Confirmation
Training and Comprehensive Disaster Drills
We conduct nationwide safety confirmation training twicea year, thereby maintaining a system that places maximum priority on human life. In addition, a comprehensive
disaster drill is conducted regularly at each business location.

What the Oji Group Aims For

Establishment of a Business Continuity Plan (BCP)
and Business Continuity Management (BCM)
Systems
At the Oji Group, we engage in business continuity management (BCM) by having each COMPANY formulate abusiness continuity plan (BCP) and review it as necessary. We constantly review and improve our crisis response system through training on the establishment ofGroup emergency headquarters and the inspection andmaintenance of necessary facilities, equipment, and otheritems, in our efforts to maintain and improve our initial response capability.

The Board of Directors at Oji Holdings is working to further enhance its governance and effectiveness by increasing the number of Independent Outside Directors and the percentage of female Directors. The four Independent Outside Directors, including a newly appointed member, got together to discuss the prospects andchallenges for the sustainable growth of the Oji Group.

About the Oji GroupThe Oji Group has implemented the following initiatives to handle business continuity risks, such as natural disasters
and accidents.

78Independent Outside Directors’ Roundtable Discussion

Takata The Oji Group is committed to and capable ofrealizing a sustainable society. We hope you look forward
to our future as a company committed to coexisting withsociety, which includes all stakeholders. We would particularly like the younger generation to understand that wehave good qualities as a global enterprise.

Oji Group Integrated Report 2021

Financial Data & Corporate Data

Message to Stakeholders

Nagai I view the Oji Group as a corporate group that
contributes to society by operating environmentallyfriendly businesses on a global scale. From now on, I
would like to join forces with our diverse employees togreatly develop the Group’s corporate activities and contribute to society.
Ai In line with its slogan “Beyond the Boundaries,” theOji Group aims for growth through the operation of diverse businesses on a global scale. At present, we areworking to overcome the effects of the COVID-19 pandemic, recover our business performance, and return
to a growth trajectory. At the same time, we are steadily
promoting innovation such as the development of
next-generation materials for the future. The stakeholders should look forward to the Group’s next moves unfettered by “boundaries”.
Nara The Oji Group, which owns forests and water, isinextricably linked with the SDGs through its businessactivities and cannot survive without harmony with natureand society. For this reason, we recognize that environmental issues are of utmost importance in the Group’s
management and prioritize them as a condition for ourown survival. We hope that all of our stakeholders will
pay attention to our stance and efforts, and we look forward to your further support and patronage.

Sustainability Strategy

Ai The Oji Group’s overseas sales ratio exceeded 30%,
and the number of its overseas employees is higher thanin Japan. Looking ahead, the results achieved by local
management will be the key to enhancing corporate value. Ease of work for local employees can be describedas the prerequisite in the Oji Group’s overseas expansion,
which requires technical and sales capabilities. The key
to this is developing human resources with communication and foreign language skills that will help to create apositive workplace environment.
Ensuring health and safety and employee satisfaction
are issues that must always be addressed in creating aworkplace. New work styles such as telecommuting andflex-time, which have expanded in the COVID-19 environment, can be expected to provide a safe, efficient, andattractive working environment.

Management Strategy

Oji Group Integrated Report 2021

Nagai In this time of uncertainty and unpredictability, thesense of security that homogeneity brings is nothing
more than a mere affirmation of the status quo, andshould be regarded as something that leads to decline. I
believe a strong and clear message from the top about
this will be the driving force behind diversity, and it will realize a sustainable company. The presence and active
participation of female employees are essential elements
for a company to maintain diversity. If this awareness permeates the entire company and each and every female
employee gains confidence, it will lead to the development of human resources and workplaces as a sustainability strategy.
Nara Although there are two female and two male Independent Outside Directors, there are still no female inside
Directors or Corporate Officers. With the need to ensure
diversity in the core human resources of a company, theOji Group must hasten the development of female executives. Of course, it will take time to develop such humanresources. However, I think it is possible to identify the eligible human resources for each grade, including subsection chief, section chief, and general manager, andimplement training in stages.
Ai The Diversity Promotion Committee leads the implementation of various initiatives related to active participation of diverse human resources. The results of these
initiatives have been highly commended externally, andwe have been selected for the second time as a “Nadeshiko Brand” rated and selected by the Ministry of Economy, Trade and Industry and the Tokyo Stock Exchange.
However, as Mr. Nara said, achieving diversity in core human resources, such as further increasing the percentage
of female managers, will take time, and I hope that we
can continue to promote these activities.
Takata I feel that the target for the percentage of female
managers (5.5% for 16 Group companies by the end of
FY2024) set by the Diversity Promotion Committee is nothigh enough. As one future move, I would like to suggest
strengthening various initiatives to promote active participation by women more than ever at Oji Nepia, which represents the BtoC business, in order to take advantage ofthe perspectives of ordinary people, particularly women.
For achieving diversity, the development of globallyminded human resources is also an important theme. We
have foreign nationals as Corporate Officers, but we needto clarify how we can further enhance a sense of belonging among personnel employed overseas and what career paths we can offer them.

Business Strategy

79

Development of Human Resources andWorkplaces as a Sustainability Strategy
What the Oji Group Aims For

Takata FY2020 business performance was significantly affected by the impact of the COVID-19 pandemic. However,I would like to commend the fact that, except for lockdowns overseas, there were no plant shutdowns or closures, and there were no serious defects or weaknesses in
the in-house infection control measures that could have led
to the occurrence of clusters. On the other hand, safety
training and audits, and site inspections at production sites
have been delayed in some areas due to the effects of the
COVID-19 pandemic. There have also been some discussions at the Board of Directors on how to mitigate and recover from this situation.
Ai I highly commend the accurate response to the
COVID-19 pandemic, which included immediately grasping the infection situation at domestic and overseas sites,
ensuring the safety of employees, and controlling the impact on the production system. At the Board of Directors’
meetings, I was asked to provide an objective viewpoint
in order to promote the necessary initiatives in a constantly changing situation, and I made comments basedon the status and speed of initiatives at other companies’
overseas sites.
Nara We can say that the impact of the COVID-19 pandemic on the progress of the Medium-term Management Plan was less than expected. I recognize thatsteady progress is seen in all of the three fundamental
policies: “Profitability Improvement of Domestic Business,” “Expansion of Overseas Business,” and “Promotion of Innovation.” I particularly applaud theestablishment of Oji Pharma Co., Ltd. as a symbol thatindicates the future direction.
Ai As an Independent Outside Director, while monitoring
whether the priority measures based on the three fundamental policies were being steadily implemented andwhether there were any impeding factors, I made recommendations based on the various information we collected
and my own experience.
In the current fiscal year, which is the final year of theplan, I will continue to make effective recommendations
while paying close attention to how each of the priority
measures will lead to enhancement of corporate value,with an eye on the direction of the next medium-term
management plan starting in FY2022.
Takata Amid the impact of the COVID-19 pandemic andthe low price of pulp, the decline in earnings for FY2020
was not as bad as it could have been. This reflects thestrength of our broad business domain, overseas business expansion, and progress of integration in our production system from materials to manufactured products,
as well as the contributions from our cost reduction efforts
and the lower prices of raw materials. However, in the medium- to long-term, there are concerns about the further
decline in demand for paper in the COVID-19 pandemic,
and the Oji Group faces the need to further accelerate ashift in business structure through the Group’s three fundamental management policies. In the future, I intend toparticipate in discussion at the Board of Directors bearing

in mind how we should implement this acceleration witha basic principle of prioritizing safety, the environment,
and compliance.
Nara I would like to focus on how the thrust of Environmental Vision 2050 will be embodied in management policies
and linked to contributing to the realization of a sustainable
society in the next medium-term management plan.

About the Oji Group

Response to the COVID-19 Pandemic and
Evaluation of Progress of the Management Plan

80

Material Issues (ESG) and KPIMaterial issues (ESG)

Responsible raw
materials
procurement● Promote CSR procurement, taking
into consideration the environmentand society following the Oji Group
Partnership Procurement Policy
and the Wood Raw Material
Procurement Guidelines● Promote purification of wastewaterand exhaust gases● Increase effective waste utilization
ratios(Unless otherwise specified, until 2030)(Unless otherwise specified, as of the end of March 2021)● Reduce GHG emissions by at least 70% or morecompared to FY2018● The actual of carbon stocks in living biomass*2
expanded to at least 170,000kt-CO₂ (calculated
value)● Renewable energy usage rate of at least 60%
through reduction coal consumption● Energy consumption intensity at least 1% peryear for the 5-year average● GHG emissions reduced by 4.8%

● 400,000 ha of overseas forest plantations● Increase the rate of overseas forest certificationacquisition*3 (maintain the domestic rate at100%)● 260,000 ha of overseas forest plantations(130,000 ha of conservation forests)● Forest certification acquisition rate of own
production forests: [Japan] 100% [Overseas]
91%—● The actual of carbon stocks in living biomass :129,000kt-CO₂● Renewable energy usage rate: 54%● A two-year (2019 and 2020) average for energy
consumption intensity of +0.1%—

Major initiatives

Value provided to society● Reduce GHG emissions through improving production
efficiency, saving energy, and utilizing renewable fuel andwaste fuel● 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● Mitigation of climate change● Increase in the usage of renewable energy● Improve in energy efficiency● Enhancement of eco-friendly technologies● Sustainable forest management such as promotion of forest
plantation and conservation of company-owned forests● Maintain and expand the multi-functions of forests● Conservation of biodiversity and ecosystem● Job creation● Employment, education, and medical support● Central management for appropriate procurement of major
raw materials● Manage the supply chain thoroughly (appropriate
procurement through supplier monitoring, risk assessment,
securing various suppliers, etc.)

Reference
pages

Corresponding SDGs

P35~38
P83~86
7.2,7.3
7.a

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● Responsible production and consumption
forms● Protection of the rights of workers andreduction of environmental burdens
throughout the entire supply chain● Percent changes from the base year (FY2018) inemissions per net sales
BOD: +9.9%, COD: +7.5%, SS: +0.8%● SOx emissions per net sales : -1.3% comparedto FY2018● Effective waste utilization ratios :98.8% [Japan], 89.4% [overseas]● Set voluntary management values that are stricter than theenvironmental regulatory standards● Purify wastewater and save emissions of chemical
substances in exhaust● Reduce and effectively use waste● Develop eco-friendly products and biodegradable materials● Safety and health● Reduction of air and water pollution● Improve the recovered paper
utilization ratio● Reduce water consumption
intensity● Recovered paper utilization ratio*5: At least 70%(Japan)● Reduce water consumption intensity*6 at least
6% compared to FY2018● Recovered paper utilization ratio: 68.5%● Water consumption intensity: +22.8% comparedto FY2018● Paper recycling (Improve the recovered paper usage ratio)● Reduce water intake and improve water recycling● Expand the water treatment bussiness overseas● Mitigation of climate change● Reduction of waste● Contribution to the solution of the water
shortage issue● Safe water supply● Continue zero product liability accidents● Zero product liability accidents (each fiscal year)● Zero product liability accidents(continued from 1998)

P90~91

P92~9317.7,17.8

Effective resource
utilization(paper andwater recycling)
Stable supply of safe
and secure products● Provide education and training inhuman rights● Percentage of target people who get educationand training in human rights: 100%

● Attendance for education and training in humanrights as part of target training: 100% (8 times
in total, 165 participants)

Respect for humanrights

*1
*2
*3
*4
*5
*6
*7

81

● Raise the percentage of female
managers● Raise the employment rate ofpeople with disabilities● Percentage of female managers*7: 5.5% [Japan](End of March 2025)● Percentage of the employment rate of people
with disabilities*8: 2.3% [Japan] (June 2022)● Number of fatal accidents: 1 (consolidated
companies)● Lost Time Injury Frequency Rate: 0.80
(consolidated companies)(January 1 to December 31, 2020)● Percentage of female managers: 3.6% [Japan](16 Oji Group companies)● Percentage of the employment rate of people
with disabilities:
Applied to six Group companies*9: 2.3% [Japan]
Across entire Group: 2.0% [Japan](June 2021)

Unless otherwise specified, Japanese and overseas consolidated companies
The actual of carbon stocks in living biomass(CO₂ tons)(Production forest) =Actual merchantable volume at the end of FY2020 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 FY2020 x above-ground biomass of natural forest x (1+underground / above-ground ratio) x carbon ratio x CO₂ conversion coefficient.
[Japan and overseas] Forest certification acquisition rate = Certification acquisition area (ha) ÷ own production forest areas (ha)Effective waste utilization ratio = (Amount of waste generated - Amount of landfill waste) ÷ Amount of waste generated × 100
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)
Water consumption intensity = (Water intake −Wastewater ) ÷ Net sales
Percentage of female managers = Number of female managers ÷ Number of all managers

Oji Group Integrated Report 2021

● Formulate and implement the “Oji Group Corporate Code of
Conduct”, the “Oji Group Behavior Standard”, and the “OjiGroup Human Rights Policy”● Perform internal audits● Implement the whistleblowing system● Raise awareness of compliance and human rights throughin-house training● Assess risks associated with suppliers’ respect for humanrights● Respect for human rights● Establish safety and health management structures andpromote activities aimed for safety and health● Thoroughly ensure safety in the handling of machines andequipment 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 humanresources● Promote working style reforms● Promote diversity● Active participation of diverse humanresources● Realization of innovation● Improvement in productivity

P97

P101
5.1,5.4
5.5,5.c

*9
*10
*11

10.2,10.3
10.4

P98~100
8.8

P102~105
5.1,5.4
5.5,5.c*8

8.5,8.7
8.8

8.2,8.5
8.8

10.2,10.3

Percentage of the employment rate of people with disabilities(employment rate) = Number of regular 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 with severe disabilities are counted as two persons)Applies to six Group companies: Oji Holdings, Oji Nepia, Oji Imaging Media, Oji Paper, Oji Management Office, and Oji Clean Mate
Serious accidents: The Oji Group considers accidents of Class 3 or higher of Appended Table of the Enforcement Regulation of the Workers’ Accident Compensation Insurance Act to be serious accidents.
Lost Time Injury Frequency Rate
(1) Covered period: January 1 to December 31.
(2) LTIFR = (the number of lost time injuries ÷ total working hours) × 1,000,000
Lost time injuries (LTI) is defined as an occurrence that resulted in a fatality, permanent disability or time lost from work of one day/shift or more.
(3) Total working hours are calculated based on the number of group company employees (regular employees and temporary/non-regular employees) as of the end of September every
year, assuming the annual working hours per person is 2,000 hours.

Oji Group Integrated Report 2021

Financial Data & Corporate Data

Inclusion & diversity● Achieve zero fatal and serious work-related
accidents*10 (each fiscal year)● Lost Time Injury Frequency Rate*11
Reduce by 50% compared to FY2018 (0.89)● Supply of safe and secure products● Reduction of environmental burdens● Dissemination of eco-friendly technologies todeveloping countries

Sustainability Strategy

Ensuring workplacesafety and health● Achieve zero fatal and serious
work-related accidents● Reduce Lost Time Injury Frequency
Rate● Reinforce safety management
systems, safety risk management
systems, and safety education● Stably supply own products● Ensure safe quality design and management in compliancewith relevant laws and regulations and stricter voluntary
management values● Provide customers with information on safety of raw
materials (chemicals, materials)● Supply of FSC™ certified products (FSC™ C014119, etc.)

P94~96

Management Strategy● Reduce emission intensity for substances ofenvironmental concern in wastewater by 15%
from FY2018● Reduce SOx emissions intensity in exhaustgases by 15% from FY2018● Improve the effective waste utilization ratio*4 atleast 99% [Japan] and 95%[overseas]

P39~40P87~89Business Strategy

Reduction ofenvironmental burdens(air, water and waste)● Maintain and expand overseas
forest plantation● Increase forest certificationacquisition rate

Current value*1

What the Oji Group Aims For

Sustainable forest
management(forest recycling)● Reduce GHG emissions● Maintain and expand CO₂ absorption
and fixation through forest
conservation● Increasing in the usage of renewableenergy● Inproving in energy efficiency

Key performance indicators (KPIs)

About the Oji Group

Mitigation andadaptation to climatechangeQualitative targets

82Environment Response to TCFD

Risks and Opportunities of Climate Change
Scenario Analysis
For the scenario analysis, the Environmental Management Department organized the identified key risks and opportunities
for the Oji Group into transition risks based on the 2°C scenario*1 and physical risks based on the 4°C scenario*1.
*1 References: IPCC RCP 2.6 and IEA 2DS for 2°C scenario, and IPCC RCP 8.5 for 4°C scenario*2 BCP = Business Continuity Plan; BCM = Business Continuity Management

The Environmental management department of Oji
Holdings acts and reports to the director in charge ofenvironmental management on climate change issues(GHG emissions reduction, forest area expansion for
CO2 absorption and fixation, etc.) as a secretariat of
the Project Team on Climate Change.
●The environmental management officer brings up thesematters at the Group Management Meetings andBoard of Directors meetings.
●Investment decisions related to decarbonization are
made at the Group Management Meeting.

Group Management Meeting

Key issues discussion and reporting

Project Team on Climate
ChangeGroup Companies

Other BusinessCompanies

Risk Management
The Environmental Management Department manages
overall environmental risks, including climate change,
for the entire Group.

83

Oji Group Integrated Report 2021

Indicators and Targets for Scope 1 and Scope 2

Scope 1 + 2

Coal-fired
power
generation†Applying to consolidated companies as the base year FY2018.
Both 2030 and 2050 targets include CO2 absorption and fixation by forest

Increasing fossil fuel prices
Markets

Increasing consumer interest in low-carbon products andservices

Reputation

Negative feedback from stakeholders

Short-term

Increasing severity of extreme weather events

Long-term

Changes in precipitation and weather patterns, and rising
average temperatures

・Increase in levies
・Purchase of electricity that comes with renewable energy certificates・Strengthening of carbon taxes in each country and expansion of introductions of carbon taxes
・Expanding investor withdrawal of investments in companies that consume fossil fuels
・Boycott of products and services that use fossil fuels
・Difficulty obtaining financing due to changes in the evaluation of company attitudes toward climate change
・Disruptions in the functioning of infrastructure networks, such as electricity and water supply, and critical services
・Damage to own facilities
・Disruption of supplier chains
・Deterioration of tree growth due to changes in climate and the ecosystem
・Abnormal outbreaks of pests

Type of risk
Strengthened regulations for GHG emissions
Enhanced promotion of the use of electricity fromrenewable energy sources
Increased fossil fuel prices
Increased consumer interest in low-carbon products andservices
Negative feedback from stakeholders
Increasing severity of extreme weather events
Changes in precipitation and weather patterns, and rising
average temperatures

Strategies and responses
・Energy conservation and optimal operation of in-house power generation facilities
・Optimized use of fossil fuel and purchased electricity
・Expanded use of non-fossil energy such as biomass, hydroelectric power generation, and waste materials
・Fuel conversion from fossil fuels to renewable energy, etc., and thoroughness and enhancement of energy conservation
・Further promotion of resource-circulation business model・Dissemination of information on the status of sustainable forest management and sustainable procurement policies
・Promotion of environmental education for young people in collaboration with environmental NPOs and other external organizations
・Ensuring business continuity by formulating a BCP
・Implementation of similar disaster prevention measures through the horizontal deployment of disaster information to ensure a prepared system and business continuity in the case of a natural disaster・Stabilize procurement by diversifying raw material suppliers and transportation methods
・Stabilize procurement by diversifying major raw material suppliers・Securing procured amounts of raw materials by promoting afforestation
・For afforestation, selection of tree species suitable to the area and the climate

Opportunities
Category

A 70% reduction by 2030
and net zero by 2050*

Zero coal-fired power
generation by 2050

Enhanced promotion of the use of electricity fromrenewable energy sources

Resource
efficiency

Types of opportunities
Effective resource utilization
Reduce water use and consumption

Awareness of business environment

Strategies and countermeasures

・Increasing demand for clean water inareas of high water risk

・Effective use of water resources cultivated through the paper manufacturing business and expansion of the water treatment business・Enter the water treatment business for the production of water for daily use.

Energysources

Expansion of non-fossil
energy use

・Increase profits by expanding the renewableenergy power business・Contribution to realizing a sustainable society

・Expanding renewable energy power business such as biomass power generation and hydroelectric power
generation
・Reduction of energy costs and environmental impacts by using waste energy such as wood residue, bark, RPF, etc.

Products
andservices

Changes in consumer preferences
Development of biomass plastics
made from carbon-neutral biomass

・Response to social issues by providing
environmentally friendly materials

・Development of biomass plastics from carbon-neutral biomass
・Development of biomass plastic materials as an alternative to fossil-based plastic packaging

Markets

Carbon credits
Expanded trading markets

・Forest conservation through measures
to revitalize the forestry industry
・Creation and trading of carbon credits
from forest CO₂ absorption

・Forest conservation in collaboration with local forestry associations based on the operation policies of thenational and local governments
・Maintaining and improving afforestation productivity by enhanced operational efficiency, improving tree yields
from afforestation, and conserving environmental forests in afforested areas.

Resilience

Expanded use of forest
resources

・Securing forest resources to produce
carbon-neutral materials
・Contribution to climate change mitigation through CO₂ absorption

・Promotion of afforestation, expansion of CO₂ absorption and fixation through forest conservation, and creationof employment and industry in afforested areas
・Practicing sustainable forest management by using internationally-recognized forest certification systems
・Protecting and nurturing rare animals and plants, disseminating information on the Oji Forest Nature School, etc.

Oji Group Integrated Report 2021

Financial Data & Corporate Data

In September 2020, the Oji Group established its Environmental Vision 2050 with “net-zero carbon by 2050”
as a pillar, setting a milestone of a 70% reduction by 2030
(using FY2018 as the base year).
●To increase the probability, we have organized a project
team for working on GHG emissions reduction and expanding CO2 absorption and fixation by sustainable forest management. And also, we are working on thedevelopment of biomass raw materials and materials asa plastic alternative, water treatment applying paper
manufacturing technology, and biomass power generation projects.

Policies, laws
and regulations

Risk Strategies and Reponses

Physical risks●

Indicators and Targets●

Details of risk
・Cost increases will be limited due to the introduction of emission trading systems
that will result in CO₂ credits for the Oji Group-owned forests.

Sustainability Strategy

Based on the Basic Regulations for Group Risk Management, the categorized risks that cause uncertainty
and economic loss in Oji Group business activities are
addressed by each department under which the risk
falls to manage risk across the whole Group.

●

Transition risks

Environmental Management Dept.

Physical risks

Reporting

Each COMPANY

Type of risk
Strengthened regulations for GHG emissions

Environmental Management Officer
Direction and Supervision

Category

Submission and reporting

Transition risks

Direction and Supervision

Risk Assessment

Opportunities●

Management Strategy

Board of Directors

Business Strategy

Governance

What the Oji Group Aims For

With respect to transition risks due to policies and laws such as a carbon tax and emissions trading systems, we recognizethat the impact of such risks to the business will be limited even with ongoing implementation of thorough energy conservation, promotion of the introduction of non-fossil fuels such as biomass and waste, and expansion of CO2 absorption and fixation by forests owned by the Group. In addition,with respect to risks to market and reputation due to the use of fossil fuels,
we recognize that the impact to business will be small due to promoting zero coal-fired power generation by FY2050 and
improving the renewable energy ratio by switching from fossil fuels to non-fossil fuels.
In terms of physical risks, flood damage and extreme dryness due to intensified extreme weather will continue to be addressed via ongoing formulation of a BCP*2 and continued practice of BCM*2, while also diversifying raw material procurement and taking flood damage countermeasures at our manufacturing facilities to reduce business impacts.

About the Oji GroupThe Task Force on Climate-related Financial Disclosures (TCFD) is a task force established by the Financial Stability Board
at the request of the G20 to reduce the risk of financial market instability related to climate change.
The transition to a low-carbon society in combating climate change will bring significant and major changes to the business community. TCFD announced its final recommendations in June 2017, encouraging companies to understand anddisclose risks and opportunities in the interests of stabilizing finances and preventing loss of asset value.
The Oji Group announced its support for TCFD in December 2020 and is working to strengthen its disclosures in linewith the TCFD recommendations.

84

Environment Mitigation and Adaptation to Climate Change

Efforts to Reduce GHG Emissions (Scope 1 + 2)
Use of Non-Fossil Fuels

Changes in Fuel Composition Ratio

The Oji Group has been en-

Fossil fuels

couraging to reduce fossil

FY1980fuel ratio by using black li-

FY1990*1

FY2005such as wood residue, bark,

FY2020quor , renewable fuels

and fuels made from waste
such as RPF*3. Renewablefuels accounted for 54.0% in
FY2020.

The Oji Group has positioned
energy conservation measures as a crucial topic andtakes continuous measures
to address it. Conserving
energy is important not only

9.0%
12.9%

20.0%

40.0%

60.0%

Renewable fuel ratio:

28.0%
35.0%
38.0%
54.0%

80.0%

*1 Renewable fuels: Organic energy and resources derived from renewable biological sources(such as wood) except for fossil resources.
*2 Black liquor (black vegetative waste fluid): Black vegetative waste fluid that remains after
removing wood fibers in woodchips in the process of making pulp from woodchips (kraft pulping process). Its components include lignin and hemicellulose.
*3 RPF (Refuse paper and plastic fuels): A type of waste-derived fuels (WDF). It is a solid fuelmade from refuse paper and plastics. It has been attracting attention as a method of thermal
recycling of wastes including plastics and paper (recovered paper) that is difficult to recycle.

Consumption (crude oil conversion)(thousand kL oile)
7,000
6,000

5,789

(kL oile / ¥ mil.)

5,874

7.00

5,822

5,660

5,219★

6.00

5,000

5.00

4,000

4.00

3.95

3.75

3.75

3.84

1,000

1.00

responsibility to undertake

0

2016

2017

2018

2019

2020 (FY)3.00

Oji Group Energy
Consumption-10.4%

Compared to FY2013-5.4%

0.476 0.473 Results 0.470
Target0.400(FY2020)

0.300

2013 (base year) 2015 2016 2017 2018 2019

Scope 1

Scope 2(thousand t-CO2)

7,892

7,944

7,836

7,650

7,460

1,305

1,349

1,442

1,327

1,193

6,587

6,595

6,394

6,323

6,267

2,000

Compared to FY2018

0.495

2020

(FY)

0

2016

2017

2018

2019

2020 (FY)*7 Scope 1: Direct emissions including fuel combustion, electric power business, transportation byGroup-owned vehicles, etc.
Scope 2: Indirect emissions of purchased energy such as electricity and steam★ A star mark indicates that FY2020 figures for GHG emission volume have been assured by KPMG AZSA
Sustainability Co., Ltd.
(1) The total includes business sites of consolidated companies, but excludes nonproduction sites (primarily
headquarters, sales offices, and other sites that perform managerial and administrative work as well sites
where GHG and environmental impacts are extremely low).
(2) Emissions relating to the electric power business (supply of electricity or heat to other companies) andtransport by Group-owned vehicles are included.
(3) Emissions of carbon dioxide (CO2) generated in conjunction with the use of fossil fuels do not include emissions relating to the supply of electric power or heat to other companies.
(4) Unit calorific value and emissions factors are calculated by using the following laws and international standards.
Japan: Act on Rationalizing Energy Use (Energy Conservation Act), Act on Promotion of Global WarmingCountermeasures (Global Warming Act), and base emissions factors of individual electric power companies.
Overseas: IPCC 2006 Guidelines for National Greenhouse Gas Inventories, IEA-published CO2 emission factors by country in 2010(5) Emissions from fuels derived from biomass (black liquor, wood, etc.) that are subject to the Global Warming
Act are calculated.
(6) Since unit calorific values for non-fossil fuels emphasize comparability to reduction targets, the factors set in
the FY2013 report are used.

Efforts to Reduce GHG Emissions Volumes (Scope 3)

0.00★ A star mark indicates that FY2020 figure for energy consumption has been assured by KPMG AZSA Sustainability Co., Ltd.
*5 Energy consumption in conjunction with the manufacture of products is calculated excluding the following energy use.
(1) The total includes business sites of consolidated companies, but excludes nonproduction sites (primarily headquarters, sales offices, and other sites that
perform managerial and administrative work as well sites where GHG and environmental impacts are extremely low).
(2) Consumption relating to the electric power business (supply of electricity or heat to other companies) and transport by Group-owned vehicles is excluded.
(3) Energy relating to the supply of electric power or heat to other party is excluded from fossil fuel and non-fossil fuel derived energy.
(4) 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 Warming Countermeasures
Overseas: IPCC 2006 Guidelines for National Greenhouse Gas Inventories(5) Since unit calorific values for non-fossil fuels emphasize comparability to reduction targets, the factors set in the FY2013 report are used.

Reduction of GHG emissions
through the Energy
Business*4:

478 thousand t-CO

2

(FY2020)*6 Power emission factor: 0.445t-CO2/Mwh, avalue published on January 7, 2021 by
Ministry of the Environment and Ministry of
Economy, Trade and Industry

Measures in the Logistic Division
Oji Rikuun, which is in charge of land transportation of the Oji Group, has obtained GreenManagement Certification at all of its 15 businessoffices. We have been working on reduction ofenvironmental burden through increasing theusage rate of recycled tires and providing training on eco-driving more in depth.
Going forward, based on the Oji Group White
Logistics Declaration, we will work on further reduction of environmental burdens through improving our logistics, such as promoting themodal shift and improving delivery efficiency.
Efforts to Disclose More Climate-related Information
As a effort to disclose more climate-related information, the Oji Group is working to grasp not
only GHG emissions accompanying productmanufacturing, but also GHG emissions accompanying raw material manufacturing and logistics.

The Oji Group’s GHG emissions in upstream
and downstream logistics*8

Compared to FY2018:-11%(FY2020: 363 thousand t-CO2e)*8 Total value of SCOPE 3 Category 4 (GHG emissions accompanying transportation of raw materials) and Category 9(GHG emissions accompanying transportation of products)

The Oji Group’s GHG emissions accompanying
raw material manufacturing*9

Compared to FY2018:-12.6%(FY2020: 3,430 thousand t-CO2e)★

*9 Scope 3 Category 1 (GHG emissions from purchased goods and services)
For emission intensities, we have referred to the “Emission intensity database for calculation of GHG emissions byorganizations throughout the supply chain (ver. 2.6)” and the “CO2 equivalents common intensity database (ver.
4.0).”★ A star mark indicates that FY2020 figure has been assured by KPMG AZSA Sustainability Co., Ltd.

Financial Data & Corporate Data

Oji Group Integrated Report 2021

-5.4% -10%
0.493 0.485 0.482

Sustainability Strategy

85

0.523

GHG emissions*7★

4,000

Contributions through the Energy BusinessIn the Energy Business utilizing renewable fuels, we sold1,074 million kWh/year ofelectricity in FY2020 throughbiomass power generationand hydroelectric power
generation whose facilities
were renovated. This amountof sold electricity contributed
to the reduction of GHG
emissions of 478 thousand
ton-CO 2 to be emitted byother electric power companies.

0.500Management Strategy

4.02

fulfilling our corporate social

efficiency improvement.

*4 6th Basic Energy Plan (draft) announced
July 21, 2021

The Oji Group GHG
emission intensity

0.600

6,000

2.00

conservation and production

36-38%

Consumption per unit of net sales

costs, but also as a part offorward thorough energy

Around

8,000

2,000

Group will continue to move

Japan’s target for its renewableenergy ratio by 2030*4:

Energy Consumption★ and Intensity

3,000

Going forward, the entire(FY2020)100.0%

because it reduces energy

environmental measures.

54.0%

GHG emissions intensity(t-CO2e/production t)

Business Strategy

Reduction of Energy Consumption*5

1.0%
1.0%

53.0%
33.1%

0.0%

Renewable fuels

GHG emission intensity accompanying product manufacturing

What the Oji Group Aims For*2

Fuels made from waste

71.9%
64.0%

The Oji Group GHG emissions
The Japanese government’s
target until the last fiscal
year of reducing GHG emissions by 26% in FY2030 compared to FY2013 is equivalent
to a 10% reduction in FY2020.
The reduction in GHG emissions per ton of products,
which was formulated basedon that target, was −5.4%
compared to FY2013. Goingforward, we will step up efforts to achieve the GHG
emissions reduction target(Scope 1 + 2) in the Group’s
new Environmental Action
Program 2030.

About the Oji GroupAs the climate change issue becomes more serious, we recognize that reducing GHG emissions is an urgent issue andare working to reduce GHG emissions by conserving energy and utilizing non-fossil fuels (renewable fuels and fuels madefrom waste).

Biomass power plant (Oji Green Energy Nichinan/Miyazaki Prefecture)

Oji Group Integrated Report 2021

86

Environment Sustainable Forest Management (Forest Recycling)

Overview of the Overseas Forest Plantation Business

21%● KPFL● QPFL●● TTO

Plantation area.............

FY2020Oceania23%

260,000 ha

260,000 ha
130,000 ha
91%

Conservation forests.....
South
America

56%

● KTH

Forest certification acquisition rate.....
(FSC™*1, PEFC)*1 License codes
SPFL: FSC™ C008418, Pan Pac: FSC™ C017103,
QPFL: FSC™ C016623, CENIBRA: FSC™ C008495,
KTH: AJA/IFCC-PEFC/FMC-HT/00038/I/2018● APFL● GPFL2

1 ha = 10,000 m●● Oji FS●●● Pan Pac●Forest plantation business

Forests are a reproducible and sustainable resource thatcan be planted, grown, harvested and re-planted. The Oji
Group has developed cyclic forest resource businesses,
and promotes the effective utilization of forests as a

●Pulp business●Lumber business● SPFL

Larch forest plantation(Engaru, Hokkaido)(End of FY2020)

Overview of Company-Owned Forests in Japan*2 A plantation on land owned by another party but to which the Oji Group holds
rights.

Total area.........................

190,000 ha
100%

Forest certification acquisition rate
For approximately 170,000 ha, excluding shared forests ....
(SGEC*3)*3 License codes
SGEC-FM: JAFTA-002, JAFTA-008, JAFTA-012
SGEC-CoC: JAFTA-W025

Drone Carrying Seedlings

Planting Early-maturing Chinese Fir

We purchased two seedling transport drones named“Morito” and began using them in company-owned forests in Hokkaido. Using a drone eliminates the labor of
repeatedly carrying heavy seedlings to the planting site,which helps save labor and speed up planting work.

In our company-owned forest in Kami-Inako (Shizuoka Prefecture), Chinese fir (native to China and brought
to Japan in the late Edo Period) was
planted on a trial basis.
Chinese fir has promise because it:
1. Grows twice as fast as Japanese cedar,
2. Has greater material strengththan Japanese cedar,
3. Can be coppiced (put out new
shoots from stumps), making
reforestation unnecessary, and
4. Should reduce weeding andtending costs, etc. because of CourtesyoftheForest
TreeBreedingCenter,
its fast growth.

Oji Group Integrated Report 2021

ForestryandForestProducts
ResearchInstitute

Woodchips

Pulp, paper,
particleboard,etc.

Biomass fuels

利用

伐採された木は枝などを取り除き丸太として搬出し、約6割を製材や合板に、残りを製紙原料やバイオマス
燃料として利用します。

Sawmill residue is madeinto woodchips, etc.

Lumber, laminated lumber,plywood, etc.
We have planted around 14,000 ha of larch forests, primarily in Hokkaido. These will grow for approximately
40-60 years before harvesting. The larch is used in a variety of applications such as lumber, plywood, packaging materials, pallet materials, raw material for paper
manufacture, and wood biomass fuel.

GrowthForest plantation trees are used for lumber, plywood, woodchips for paper manufacture, wood biomass fuel, etc. The lumber, laminated lumber,and the raw materials for plywood come from the thick part of the tree
trunks. The sawmill residue from the production of lumber, and the tipsof the trunks which cannot be used for lumber, are thoroughly utilized aswoodchips for paper manufacturing or biomass fuel.

Planting
Thinning

The first thinning is carried out around
10–15 years after planting. Sunlight penetrates into the dark interior of the forest,enriching the lower levels of vegetationand making the forest healthy. Thinningis carried out every 10–15 years thereafter.

Sustainable
ForestManagement
A stick or similar measure is used whenplanting seedlings to ensure that they
are properly spaced.

Weeding

Financial Data & Corporate Data

87

Company-owned forests in Japan

Cascading use of forest resources

Sustainability Strategy

The Oji Group owns around 190,000 ha of forests in approximately 6 5 0 locations throughout Japan, extending
from Hokkaido to Kyushu. We have obtained SGEC forest certification for our company-owned forests with the
exception of shared forests*2, clearing stringent third-party standards and engaging in sustainable forest management.

and softwoods such as radiata pine (harvestable in around30 years). Our forest plantations in Brazil operate on a rotating basis, harvesting eucalyptus around every sevenyears.

comprehensive forestry business group, in order to harness
the full potential of the wood it harvests, leaving none towaste.

Management Strategy

The Oji Group owns 260,000 ha of forest plantations, primarily in Brazil, Oceania, and Southeast Asia. We mainly
plant high-growth species, including hardwoods such as
eucalyptus and acacia (harvestable in around 10 years)

Yuji Onuki

Business Strategy

CENIBRA ● ●Corporate Officer, Oji Holdings Corporation
Vice President, Forest Resources and Environment Marketing COMPANY

What the Oji Group Aims For

Overview of Overseas Forest Plantations
Southeast Asia

The Oji Group grows trees based on the philosophy “those who use trees havethe responsibility to plant trees,” and has therefore cared for forests, holding
190,000 ha in Japan and 390,000 ha overseas (of which 260,000 is forest plantation).
Our Environmental Action Program 2030 states a goal of having 400,000 ha ofoverseas forest plantation.
The work of nurturing forests requires steady effort, but the Group applies thetechnology and know-how accumulated over many years to appropriately maintain and manage forest plantations as well as the accompanying conservation
forests, while expanding the area held.
The Oji Group will continue to contribute to addressing climate change issues
through CO2 absorption and maintain biodiversity through practicing and expanding
sustainable forest management in consideration of harmony with the environment.

About the Oji GroupThe Oji Group maintains and manages a total of 450,000 ha of production forests (an area twice the size of Tokyo), including 260,000 ha of forest plantations overseas and 190,000 ha of company-owned forests in Japan. It is no exaggeration to say that forest resources are the foundation of the paper manufacturing industry. The stable supply of theseresources as raw material for paper manufacturing and as fuel for biomass power generation is a central pillar of theGroup’s businesses. In the future, we also aim to provide a stable supply for wood fiber-derived new materials, suchas the cellulose nanofiber (CNF) and biomass plastics currently under development.
The Group spends approximately 10.5 billion yen annually for ongoing forest management in order to practice sustainable forest management.

Weeds that would inhibit the growthof the trees are kept cut back until
the saplings reach a sufficient height.

Oji Group Integrated Report 2021

88

Environment Responsible Raw Materials Procurement

Initiatives for Conservation of Biodiversity

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. Specifically, the Group shares the Oji
Group Partnership Procurement Policy with all its divisions involved in procurement, not only requesting the understanding of new suppliers before starting transactions, but also informing all existing suppliers of revised content at
the time of revision, to fulfill its social responsibilities along the entire supply chain.

The Oji Group has set a goal of conserving biodiversity in its Environmental Vision 2050 and Environmental Action
Program 2030. We promote ecosystem-friendly forest management, the protection and cultivation of rare animals andplants, and have established and implemented a policy for research and development of biodegradable and biomass
materials to maintain ecosystems.
Environmental Vision 2050 ➡ https://ojiholdings.disclosure.site/en/themes/191/
Environmental Action Program 2030 ➡ https://ojiholdings.disclosure.site/en/themes/150/
The Oji Group engages in activities for protecting and nurturing endangered species, maintaining and recovering ecosystems, and other activities in cooperation with governments, administrative authorities, environmental NPOs, academics, local residents, and other parties.

*We revised the Policy provisions relating to reducing GHG emissions, as well as climate change, management of water resources, protection of labor rights, etc., and requested our suppliers
adhere to the revised Policy.

Wood Raw Material Procurement

Procurement of Chemicals and Materials

The Oji Group has established the Wood Raw Material
Procurement Guidelines for the procurement of wood
raw materials, our main raw material, and we implementa range of initiatives to practice responsible procurement
based on these policies and guidelines.

The Group confirms the safety during the selection phase of procurement, through the following
two systems.

A third-party audit report on
traceability reports*RPPN: Reserva Particular do Patrimônio Natural

4 Conservation Activity for the Fairy Pitta (Koyagauchi company-owned forest in Kochi Prefecture)
The fairy pitta is a migratory bird with multiple body colors and a body length of around 20 centimeters. It is listed as a class
IB endangered species on the Red List of the Ministry of the Environment. In August 2016, Oji Holdings concluded anagreement to protect the fairy pitta with the Ecosystem Trust Society at the 260 ha of company-owned forest, which is adjacent to the fairy pitta sanctuary of the organization.

Category
Endangered (EN) IB
Endangered (EN) IB
Endangered (IUCN 3.1)
Vulnerable (IUCN 3.1)

Common nameItou
Fairy pitta
Mutum
Kiwi

89

Oji Group Integrated Report 2021

Itou
(Photo provided by Yo Chirai)

Classification
Fish
Bird
Bird
Bird

Mutum

Ministry of the Environment Red List categories➡︎ https://www.env.go.jp/nature/kisho/hozen/redlist/
rank.html
IUNC Red List ➡︎ https://www.iucnredlist.org

Expand procurement of wood from certified forests
Increase use of plantation trees
Utilize unused wood effectively
Verify that procurement is in compliance with laws, environmentallyfriendly, and socially responsible
1. Implement monitoring of supplies
2. Ensure raw material traceabilitya) Production place of raw materials (place of logging, forest owner, differentiation between plantation wood and natural forests, etc.)b) Forest management method (applicable forestry laws, regulations forforest management, etc.)c) Acquisition status for forest certificationd) Avoidance of wood obtained through illegal logginge) Avoidance of genetically modified (GMO) woodf) Avoidance of logging in forests that are recognized publicly as forests
with high conservation valueg) Avoidance of raw materials associated with major social conflictsh) Adherence to protection of human rights and labor rights(5) Disclose information

Financial Data & Corporate Data

Kiwi

Scientific name
Hucho perryi
Pitta brachyura nympha
Crax blumembachii
Apteryx mantelli

(1)
(2)
(3)
(4)

Sustainability Strategy

Protection and Nurturing of Endangered Species

Wood Raw Material Procurement Guidelines (Summary)Management Strategy

3 Restoration of Ecosystems and Protection of Rare Species (CENIBRA / Brazil)
One of the largest overseas forest plantations of the Oji Group is owned by CENIBRA, which operates the eucalyptus plantation and pulp businesses in Brazil. CENIBRA owns and manages a 250,000-ha forest plantation, of which 100,000 ha areforest reserve areas. In the forest reserve areas, in accordance with the Brazilian Forest Law, natural forests and vegetation
around rivers and lakes, including water sources, are left unharvested to preserve biodiversity. In cases where natural forest
in a forest reserve area is lost due to fire, etc., the company plants indigenous species of trees so that the environment canrecover (restoration of natural forest).
The symbol of the company’s biodiversity initiatives is the Macedonia Farm, a 560-ha area that is registered as a naturalforest reserve (RPPN*). In this forest, the company has been engaged in activities for breeding the Mutum (a relative of thecurassow), an endangered bird species, and several other species, and returning them to the wild, jointly with an NPO since1990. CENIBRA also provides environmental education related to forests and biodiversity to schools and local communities
and conducts wide-ranging monitoring surveys of flora, fauna, and water resources in the forest on a regular basis.

Pre-use Evaluation System
When considering the use of a new chemical, theOji Group conducts an assessment by checking
laws and regulations, hazard information, andgreen procurement by major industry associations, etc. using proprietary pre-use evaluation
sheets and makes a determination whether thematerial can be used.
Information Updating System
Chemical substance management regimes arebeing strengthened in Japan and overseas, andaccordingly, the Group regularly updates evaluation sheets and information by regularly evaluatingchemicals in use and confirms their safety.

Business Strategy

2 Sarufutsu Itou Conservation Activities (Sarufutsu company-owned forest in Hokkaido)
In 2009, Oji Holdings established the Sarufutsu Itou Conservation Council with a local NPO, administrative bodies, researchers, and others for the purpose of protecting the Japanese huchen, or the sea-run taimen (Hucho perryi), an endangered
species that lives in the river zone of the Sarufutsu company-owned in Sarufutsu village, Hokkaido. An area of 2,600 ha
including the river zone was designated a conservation area, and conservation activities are conducted.

➡︎https://ojiholdings.disclosure.site/en/themes/187/
What the Oji Group Aims For

1 Conservation Activity for Kiwi (Pan Pac / New Zealand)
Pan Pac Forest Products, an Oji Group company, conducts activities for protecting the kiwi, a rare bird species, in cooperation with the Ministry for the Environment of New Zealand, citizen volunteers, and other parties. For these activities, thecompany has designated land of an area of approximately 40 ha as a kiwi sanctuary for protecting kiwi chicks. Chicks andeggs in the surrounding area are captured and collected, and chicks that are captured or hatched from the collected eggs
are nurtured in the sanctuary before being returned to the wild. In June 2019, Pan Pac was awarded Community Corporate Sponsor of the Year at a national kiwi conference held by Kiwis for kiwi, a kiwi protection organization.

The Oji Group Partnership Procurement Policy (established in 2007 and revised in 2012 and 2018*)

About the Oji Group

Environment Conservation of Biodiversity

Fairy pitta(Photo provided by Ecosystem
Trust Society)

Oji Group Integrated Report 2021

90

Environment Responsible Raw Materials Procurement

Environment Reduction of Environmental Burdens

Supply Chain Management

The Oji Group recognizes that the reduction of environmental burdens and effective resource utilization are important tasks forfor waste water and exhaust gas, strives to strictly comply with laws and regulations, and promotes prevention of pollution.

The Forest Certification System Implementation Commit-

I. Corporate governancerelated to CSR

tee, chaired by the Director responsible for raw material
procurement, meets twice a year. It shares environmental
and social issues related to the supply chain, discusses
and implements improvement measures.

VIII. Information
disclosure/protection
and fair corporate
activities

100

We are also working on effective utilization of resources, promoting effective use of water resources and waste.
II. Human rights

80
60

Purification of Wastewater

40

The Oji Group has around 3,000 suppliers in Japan andoverseas. A risk assessment survey covering eight items
such as Governance, Human Rights, Labor and Environ-

We operate with voluntary management values that are20

VII. Coexistencewith local
communities

III. Labor

0

Average
score

Company A

per, and corrugated base paper suppliers was conducted.

and exhaust gases.
For example, COD emissions for substances of environleast 52% compared to the emissions in keeping with the

VI. Supply chain

Survey results were organized into radar charts (figure

Regulatory levels of emissions(thousand t)
75

IV. Environment

Rate of reduction due to operation of voluntary management values

ly 3,000 Oji Group suppliers (wood chips, fuels, chemicals, etc.) by FY2023, and will continue to carry out risk

At least

assessments and risk reductions.

52%

reduction

Percent changes fromthe base year (FY2018) inemissions per net sales
BOD
COD
SS

+9.9%
+7.5%
+0.8%

68

VOC Emissions★

emissions of VOC (volatile organic compounds)*2 at or

VOC Emissions (Japan)

below their levels in FY2010, which is a guideline presented by the Japan Paper Association. In addition, we

0.75

750

Perceptions Index (CPI), and deforestation rate ining voluntary management values.

500

0.61

VOC emissions
Compared to FY2010-68%

with legal regulations

0.41
Reduction of VOCs
through combustion or
adsorption, or use ofwater-borne materials

0.42

250

0

0.34

0.32

0.25

714

594

622

523

481

0.17
227

2010(Base year)

2016

2017

2018

2019

2020 (FY)0(FY2020)

Existing suppliers
ging licenses, etc., verify sites (logging sites and forests),

SOx emissions
Compared to FY2018

and conduct monitoring on compliance with the WoodEmissions per net sales

Raw Material Procurement Guidelines.

-1.3%-13.5%★ A star mark indicates that FY2020 VOC emission figure has been assured by KPMG AZSA
Sustainability Co., Ltd.
(1) Domestic Group companies subject to Japanese pollutant release and transfer register (PRTR)
law have been included.
(2) Of the substances subject to PRTR law, those corresponding to the 100 types of VOC indicatedby the Ministry of the Environment based on the Air Pollution Control Act have been included.
(3) Intensity is the volume of VOCs generated divided by net sales.
(4) The decrease for FY2020 compared to FY2019 includes the impacts of the sale of domestic
Group companies.

(FY2020)

Emissions(FY2020)

Financial Data & Corporate Data

as a result of the due diligence.

0.50

-68%

Sustainability Strategy

manage SOx (sulfur oxides) and other compounds us-

New suppliers are selected if they are deemed low risk

Oji Group Integrated Report 2021

(Emissions kg/¥ mil.)(thousand kg)*3

based on the forest certification system, Corruption

The Oji Group employees check information such as log-

VOC emission intensity per unit of net sales

Management Strategy

SS (Suspended solids)
The amount of particulates (1–2 mm in diameter) suspended in water.

In terms of exhaust gases, we are working to maintainc) Checking suppliers for a certificate for compliance

SS

COD

*1 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.

the country or region indicated by Food and Agricul-

91

13

BOD

Due diligence for new suppliers (risk assessment)ture Organization of the United Nations (FAO)

33

8

0

Purification of Exhaust Gasesb) Conducting national and regional risk assessments

Inspecting a forest with a local supplier

-75%

30

New suppliers

ments

68

COD (Chemical oxygen demand)
The amount of oxygen required as calculated from the amount of oxidant that is consumed whenorganic matter is oxidized.

(FY2020)

Examples of Risk Assessment and Monitoring of Wood Suppliersa) Confirming supplier’s general information in docu--81%

Business Strategy

We plan to carry out risk assessments of approximate-

-52%

25

Comparison of release of substancesof environmental concern against
the regulatory values (COD)

request continuous improvement.

50

regulatory values. We are working to purify the wastewater.

V. Quality and safety

on right), etc. with feedback provided to each supplier toInterviewing a local supplier

Actual emissions

mental concern*1 in wastewater have been reduced by atment has been conducted has been prepared since
FY2019. In FY2020, a survey targeting pulp, recovered pa-

stricter than the regulatory values to manage wastewater

Release of Substances of Environmental Concern in FY2020 (Wastewater)

What the Oji Group Aims For

Supplier Risk Assessment

Reduction of Environmental Burdens

About the Oji Group

achieving a sustainable society. The Group sets its voluntary management values that are stricter than the regulatory values

Supply Chain Management Structure*2 A general term for a wide variety of organic compounds that are volatile and become
gaseous in the atmosphere, including substances such as toluene, xylene, and ethyl acetate.
*3 A general term for sulfur oxides, including sulfur monoxide (SO), sulfur dioxide (sulfurous acidgas) (SO2), sulfur trioxide (SO3) and more.

Oji Group Integrated Report 2021

92

Environment Effective Resource Utilization (Water Recycling)

Water Resources

Water Consumption Reduction and Water Recycling

Water Intake and Wastewater
We are working to reduce environmental burdens causedby the depletion of water resources by purifying water resources after using them in the manufacturing processes
and returning about 95% of our water intake to rivers,
oceans, etc.

Paper and pulp manufacturing requires large amounts of

FY2018FY2020

vs FY2018 (%)

Water intake (million m3)

740

706

95.4

Wastewater (million m3)

708

672

94.8

32

34

107.6

water, but the Oji Group has reduced water consump-

Water intake reductiontion*1 by improving operations, and treating and reusing-4.6%

Compared to FY2018(recycling) the water it uses to reduce water intake.
evaporation during the manufacturing process or product moisture(FY2020)

Water consumption = Intake − Wastewater

At paper mills, we maintain a recycling rate of 93%,
using water without waste through water cascades for

Water Intake★ and Intensity

Wastewater★ and Destinations

Water intake per unit of net sales

Water intake

Sea(thousand m3/¥ mil.)(million m3)

1.00

1,000

744

743

750

740

706

0.75

0.50

0.52

0.49

0.48

Rivers, lakes, ponds, groundwater

Sewer

716
73

716
73

709
73

701
69

672
60

285

285

281

278

272

600

400

Recycled Water Volume and Water Recycling Rates

300

250

0.25

0

0.00

200

358

358

355

354

Recycled water volume

340

100

2016

2017

2018

2019

2020 (FY)FY2017FY2018FY2019FY2020Surface water (rivers, lakes, ponds) (million m3)

487

487

488

483

477

Groundwater (million m3)

150

150

151

147

128

Third-party organizations (million m3)

106

107

101

107

101

(million m3)

0

2016

2017

2018

2019

2020

(FY)

★ A star mark indicates that FY2020 figures for the total amounts of water intake and wastewater
have been assured by KPMG AZSA Sustainability Co., Ltd.
(1) Business sites of consolidated companies are included in the total, but nonproduction sites are
excluded.
(2) Intensity is the volume of water intake divided by net sales.

Water recycling rate

1,000

96

94

94

93

93

750

716

703

695

687

655

(%)
100

Water recycling rate*2

93%(FY2020)*2 The water recycling rate refers to the volume of water recycled, divided by the water intake.

500

50

250

Effective Use of Waste
0

FY2019Japan (%)

98.3

98.4

98.8

Up 0.5%

Overseas (%)

89.6

88.5

89.4

Down 0.2%

FY2020

Japan

Up

0.5%
(FY2020)93

Oji Group Integrated Report 2021

Overseas

Down

0.2%

2018

2019

2020 (FY)0

Volume of Waste Generated★ and Utilization Ratios
Volume of waste generated

Effective utilization rate

(thousand t)
5,000

(%)

95

94

94

94

100

94

Wastewater generated by Jiangsu Oji Paper through manufacturing processes is treated and purified until it meets theregulatory levels for wastewater, then transferred to Nantong Nengda Water Co., Ltd. in Nantong Economic & Technological Development Zone. After undergoing various treatment processes, this water is all used as recycled water*3 within the

2,762

2,782

2,875

2,757

Economic & Technological Development Zone.

2,733

2,500

75

0

50

Compared tothe base year

Effective waste utilization ratios
Compared to the Base Year (FY2018)2017*3 Recycled water is water of a quality between tap water and sewage, and is used for industrial purposes.

Jiangsu Oji Paper
2016

2017

2018

2019

2020

(FY)

All utilized within the Nantong★ A star mark indicates that FY2020 figure has been assured by KPMG AZSA Sustainability Co., Ltd.
(1) Business sites of consolidated companies are included in the total, but nonproduction sites are
excluded.
(2) The volume of waste generated includes valuable materials (general waste is not included).

*Effective waste utilization ratio = (Amount of waste generated − Amount of landfill waste)
÷ Amount of waste generated × 100

Nantong Nengda Water Co., Ltd.

Transfer
Wastewater frommanufacturing processes

Recycled water
Recycled water throughvarious treatment processes

Economic & Technological
Development Zone

Financial Data & Corporate Data

Base year(FY2018)

2016

Sustainability Strategy

Effective Waste Utilization Ratios
The effective waste utilization ratios* rose by 0.5% in Japanand declined by 0.2% overseas from the base year
(FY2018) levels.
Going forward, we will continue to work for the reduction of environmental burdens by promoting the recovery
and reuse of raw materials from water used in manufacturing processes, and effectively utilizing the ash resulting
from burning fuel for electricity and heat in production
processes for applications such as roadbed materials.

Management Strategy

FY2016

Consumption(evaporation, product moisture, etc.)

also recover the raw materials (fine fibers, etc.) from theBusiness Strategy

0.52

0.50

Wastewater

water used to dilute pulp and reuse them.

800

500
500

Intakewater intake and recycling. For paper manufacturing, we(million m3)
700

737

Treatment andReuse*1 Water consumption that does not return to rivers or the sea due to

What the Oji Group Aims For

Consumption (million m )3About the Oji Group

Environment Reduction of Environmental Burdens(FY2020)

Oji Group Integrated Report 2021

94

Environment Effective Resource Utilization (Paper Recycling)

Recovered Paper Use Results

17.7%● Expand exports of containerboard to utilize them at

FY20203.83 million t 51.6%

(Approx. 24% of all
recovered paper
use in Japan)

20.8%■ Old corrugatedcontainers■ Old magazines■ Old newspapers■ Others

corrugated container plants of overseas Group companies, mainly in Southeast Asia
● Expand recovered paper exports to paper manufacturing
plants of overseas Group companies (GSPP in Malaysia)

(%)
70.0

68.5

69.0

FY2017

FY202020.85 million t

18.90 million t

82.1%

83.1%

■ Exports (China) ■ Exports (except China) ■ Demand in Japan

Containerboard and Recovered Paper Exports

65.6
64.3

63.0

63.0

62.0
61.0

61.5

62.4

63.2 62.7

64.3
63.5

61.6

Initiatives for Paper Recycling at Overseas Business Locations

Oji Group's companies in JapanUse of Recovered Paper in New Zealand
The sorted collection of recyclables in New Zealand is not
as developed as it is in Japan, so all recyclables are basically collected in a recycle bin. For this reason, it is essential to build a system for collecting only recovered
paper in order to efficiently collect high-quality recovered
paper with low contamination. Oji Fibre Solutions (Oji FS)
is the New Zealand’s largest user of recovered paper andthe only containerboard manufacturer in the country. For
our own recovered paper collection business, Oji FS
boasts the fact that the amount of recovered paper collected exceeds not only the company’s own consumption but also total domestic consumption.
With 13 baling sites (to compress and pack recovered
paper into large cubes weighing about 1 ton each), Oji
FS collected about 243,000 tons of recovered paper in
2020. As Oji FS has a track record of using approximately 185,000 tons of recovered paper, the surplus exceeding its own consumption is exported overseas, mostly to
the Oji Group company GSPP (Malaysia). Since Oji FS efforts are directly linked to the improvement of the national
recovered paper recycling rate, the company is actively
engaged in activities to improve recovered paper collection and the recovered paper utilization rate, such as
considering a nation-wide collection system together withthe government and developing paperboard productswith an increased recovered paper content.

All Japan*2

60.02008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

(FY)

*2 All Japan: Paper Recycling Promotion Center

Various Efforts to Promote the Use of Recovered Paper
The Oji Group is working to promote various uses of recovered paper, such as thorough sorting of recovered
paper at offices and mills within the Group, and anawareness campaign on paper recycling in cooperation
with recovered paper wholesalers as suppliers, local residents, and industry groups.

2. Increasing the use of recovered paper● Use of difficult-to-process paper: The Group is install-ing purpose-built facilities to process paper tubes, laminated paper, and other difficult-to-process paper for
use as a raw material.
● Use of confidential documents: In consideration of themaintenance of confidentiality and issues of information
leaks, confidential documents were incinerated in thepast, but the Group dissolves the documents in fully secure facilities for use as a raw material.

Oji FS used paper recovery vehicle

Dedicated recovery box for
corrugated containers

Recovered paper bales delivered toa paperboard plant

Oji Group Integrated Report 2021

Financial Data & Corporate Data

Difficult-to-process recovered paper Confidential document processing(paper tubes)
facility(Oji Materia Edogawa Mill)

Sustainability Strategy

64.0 64.0

Management Strategy

64.0

Oji Group Integrated Report 2021

10.5%

6.2%

Containerboard exports
Recovered paper exports
Food and product packaging

68.0

65.0

95

6.3%

Changes in Recovered Paper Utilization Ratio

66.0

1. Enhancing the quality of recovered paper
The inclusion within recovered paper of specially processed paper and foreign substances that are not suitable as papermaking materials (collectively referred to asprohibited materials) is a cause of product problems. Accordingly, the Group cooperates with recovered paper
wholesalers, which play a central role in recovered paper
logistics, and Paper Recycling Promotion Center, engaging in initiatives such as awareness campaigns targetinghouseholds and businesses to eliminate prohibited materials included in recovered paper and strives to raise therecovered paper utilization ratio.

11.7%

The Oji Group makes effective use of recovered paper
across national borders and contributes to the proper recycling of recovered paper in Japan.

67.0Collection of recovered paper from households

Recovered Paper Demand in Japan

Business Strategy*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 other fiber
raw materials)

9.9%

Since more corrugated containers are imported as packaging materials for agricultural produce, electric appliances and other goods than are exported, there is more old
corrugated containers collected than are domesticallyconsumed as a raw material, and the surplus is exported.
However, overseas demand is unstable for reasons suchas China halting its imports of recovered paper from2021, so there is a risk that the proper recycling of recovered paper may be impeded.
The Oji Group is therefore undertaking the following initiatives for stable recycling of surplus recovered paper:

What the Oji Group Aims For

The Oji Group uses approximately 3.80 million tons of recovered paper each year, the largest amount and about
24% of the 15.70 million tons of total recovered paper
use in Japan. The breakdown of recovered paper use is
as follows: about 51% old corrugated containers, about
21% old magazines, and about 18% old newspaper. In
addition, recovered paper utilization ratio*1 in FY2020 was
68.5%, an increase of 6.1 points in the past 10 years as
a result of various efforts to use recovered paper as a resource.
In FY2019, the Oji Group achieved the Japan Paper
Association’s target of “a recovered paper utilization ratioof 65% by FY2020”. From FY2021, we have established
our Environmental Action Program 2030 and are working tofurther expand the use of recovered paper with the aim ofachieving a recovered paper utilization ratio of 70% or more(in Japan).

Recovered Paper Use Results

Promotion of Global Recovered Paper Recycling
About the Oji Group

While IT is growing more common in all aspects of our lives, the use of certain kinds of paper is shifting to a paperless format, but there is also growing demand for paper as an alternative material to reduce plastic waste and reduce the use ofplastic, which has become a global problem. It can therefore be said that the importance of paper is growing. This is because
it is a material with a high recycling rate, with approximately 60% of the raw material used for paper being recovered paper.
To further improve the high recycling rate, a superior feature of paper, the Oji Group will not only take direct initiatives
such as promoting the use of all kinds of recovered paper, but also strive to expand paper recycling from a broader perspective through efforts to maintain a sound recovered paper recycling system by setting appropriate recovered paper
prices, global recovered paper utilization, etc.

96Society Ensuring Workplace Safety and Health

Based on our Product Safety Charter, the Oji Group strives to provide quality and services that customers can use withpeace of mind, and has a system in place to promptly provide documents to certify the lawfulness and traceability ofwood raw materials whenever these are required by our customers.

Safety and Health Policies and Targets

Product Safety Charter
We will implement appropriate management to follow our own standards, in addition tocomplying with all product safety-related laws and regulations.

2

We will endeavor to confirm safety based on the continuous strengthening of the company-wide quality control system.

3

We will provide timely and appropriate information on product safety and proper usage.

4

We will proactively gather information on products involved in incidents and make reports
to relevant authorities in compliance with the law and regulations.
We will also faithfully take necessary actions and strive to find the root causes of incidents
and prevent their recurrence.

5

We will continuously review our management system through regular internal audits, always striving for improvement.

Oji Group’s 2021 Safety and Health Promotion Plan

Utilization of Forest Certification Programs

Mill

ForestResources

RecoveredPaper(intermediate products)
Woodchip/pulp
paper, paperboard,
processed lumber
products

Safety and Health Management StructuresOji Group Safety and Health Management Structures aim to prevent occupational accidents and maintain and promote
the good health of Group employees, 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 Health Management Rules.

COC
Certification

Plant(end products)
Copying paper,household paper,
corrugated containers

FSC™
Certified
Products

Group CEO

COC
Certification

Direction

Customers
Distribution, users,
consumers

Corporate Governance Division
Safety Administration Dept.

Sales,
management,
logistics
Direction and Supervision

Provision of Information to Customers

97

Research Reports

Reports that respond to detailed individual inquiries by tracing
back to the chemicals used

Article Information
Sheets (AIS)

A document that summarizes laws and regulations relating to
products and key handling points

Safety Data Sheets(SDS)

A document provided pursuant to laws and regulations concerning special products that contain substances designated inlaws and regulations in amounts exceeding certain thresholds

Oji Group Integrated Report 2021

Reporting

Each COMPANY
Implementation of audit
Flow of information

Inquiries
throughcommercial
channels

Domestic andForeign Laws andRegulations andGreen Procurement

Manufacturingservice providers
and suppliers

Customers
Responses
throughcommercial
channels

Headquarters
Product Safety
Department

Direction
andSupervision

Mill Product
SafetyDepartments

ReportingDirection
andSupervision

ReportingMain Companies
Head Office
独立事業会社
Safety and HealthManagement Division
Direction
andSupervision

ReportingAffiliated Companies
Workplaces
Safety and HealthManagement
Division

Research Reports
Article Information Sheets (AIS)
Safety Data Sheets (SDS)

Reporting

Independent Business Companies

ReportingMain Companies
Head Office
Safety and Health Management Division

Domestic and overseas
Group companies

Sales
divisions

COMPANY Management Companies
Safety and Health Management Division
Direction and Supervision

EU REACH Regulation
EU RoHS Directive
chem SHERPAGADSL

Direction
andSupervision

Workplaces
Safety and HealthManagement
Division

Direction
andSupervision

ReportingAffiliated Companies
Workplaces
Safety and HealthManagement
Division

Workplaces
Safety and HealthManagement
Division

Financial Data & Corporate Data

The Group responds to customer inquiries regarding thesafety of the raw materials we use, based on safety information for various chemicals verified using the pre-use
evaluation system and the information updating system.
Responses to customer inquiries are made using Research Reports, Article Information Sheets (AIS), Safety
Data Sheets (SDS) and other documents.

ReportingOji Holdings Corporation
Sustainability Strategy*1 FM certification: Confirmation of forest management*2 CoC certification: Confirmation of management on processing anddistribution of produced wood

COC
Certification

Key Targets
Group target: Achieve zero fatal and serious work-related accidents
Key Measures❶Improving the safety of facilities (Assess risk in way that involve the participation of all employees. The senior management along with managers and managing supervisors of the business sites shall responsibly takespecific safety measures)❷Implementation of education and training to ensure that rules areobserved❸Accident prevention measures for cooperative companies andcontractors who enter facilities temporarily❹Management of physical and mental health, and improvement
and maintenance of the workplace environment(also prevent COVID-19 infections)Management Strategy

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 and processing operations. Acquiring integrated certification from forests toconverting plants enables the Group to offer a wide rangeof FSC™ certified products, from intermediate products to
end products such as photocopying paper and paper forhousehold use.

FM
Certification

To achieve the Oji Group’s goal of zero fatal and serious work-related accidents, and to curb repeated occurrences of similar accidents, the entire Oji Group (including our subcontractors) aremaking efforts that are being led by workplace leaders, the Safety
Administration Department, and departments in charge of safety ateach COMPANY and Group company.
・Instilling “safety as our absolute top priority” through safety activities with the participation of all involved
・Improving the safety of facilities and implementation of education and training to ensure that rules are observed
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 our absolute top priority”.
SloganAlways Follow the Rules and Ensure that Others Follow the Rules toPrevent Fatal and Serious Accidents

Business Strategy

1What the Oji Group Aims For

The Group’s Product Safety Charter
sets out the policies for providing safe
and secure products to our customers. For example, Oji F-Tex deals inmany products for food containers
and packaging and their safety is indispensable for customers to usethem with peace of mind. Therefore,
based on the Product Safety Charter,
we pay careful attentions to safety
throughout, from raw material procurement and management of production
processes to confirmation at shipping.

Under a policy of making safety, the environment and compliance top priorities, the Oji Group has established rules andstandards on occupational safety and health in the Oji Group Corporate Code of Conduct and the Oji Group Behavior Standard. We secure the safety and health of workers by ensuring that every Group employee is aware of these rules and standards on occupational safety and health, practices them, and complies with them. At the same time, we promote thecreation of comfortable workplace environments and strive to create better workplace safety climates so that all workers in
the Oji Group can work in a safe environment and with a sense of security.
Each Group company creates a safety and health promotion plan and a specific safety and health action plan for eachcompany and workplace based on the Oji Group’s annually formulated safety and health promotion plan. Measures for theelimination of occupational accidents are implemented together by Group employees, affiliates and business operators whoenter the Group’s premises on a temporary basis.

About the Oji Group

Environment Stable Supply of Safe and Secure Products

Chemicalcompanies

Oji Group Integrated Report 202198Society Ensuring Workplace Safety and Health

The Group’s safety and health promotion plan, notices and guidelines on safety and health, and occupational accident reports, and other information are distributed throughout the Group.
If a fatal or serious accident occurs, the incident is immediately reported to management in accordance with the reporting
route specified in the Basic Regulations for Group Risk Management, and structures are in place to ensure appropriate responses. In addition to strengthening the sharing of safety notices and accident case studies across the Group with the aimof lowering the lost time injury frequency rate at workplaces overseas, the Group is also working to increase awareness ofsafety measures and the opportunities for local patrols at workplaces in Japan to enhance safety levels.

Group CEO Safety Award
The Group CEO Safety Award is granted to Oji Group’s all domestic and overseas workplaces that meet certain criteria determined according to the business scale (number of
employees) including the total work time or the number of consecutive years without any lost time injuries. The Award is
granted to workplaces with outstanding records of no accidents together with the employees of those workplaces andthose of affiliates of Group companies with the aim of improving the safety and health levels of the Oji Group and eliminating
occupational accidents.

Lost Time Injury Frequency Rate★

* (1) Covered period: January 1 to December 31(2) LTIFR = (the number of lost time injuries ÷ total working hours) × 1,000,000
Lost time injuries (LTI) is defined as an occurrence that resulted in a fatality, permanent disability
or time lost from work of one day/shift or more.
(3) Total working hours are calculated based on the number of group company employees (regular
employees and temporary/non-regular employees) as of the end of September every year, assuming the annual working hours per person is 2,000 hours.

1.0—● Japan —● Overseas —● Whole Group

2.0

1.56
1.5

1.06

0.5

0.0

1.25
1.07
1.02

0.75
0.49
2015

0.61
2016

1.01
0.89

0.79

0.76

2017

2018

1.08
0.88

0.85
0.80

0.67

0.74

2019

2020 (Year)★ A star mark indicates that 2020 figures have been assured by KPMG AZSA Sustainability Co., Ltd.

Occupational safety and health committees, workplacesafety and health meetings, and workplace discussions
Group companies have established occupational safety andhealth committees at each workplace in accordance with laws.
These committees formulate plans for the prevention of occupational accidents and health impairment, create comfortableworking environments, maintain and promote good health, andhold monthly discussions to confirm and improve initiatives
taken under these plans and address other relevant issues. At
small-scale workplaces where the establishment of an occupational safety and health committee is not required, we also holdmonthly workplace safety and health meetings and workplacesocial gatherings, create opportunities to obtain opinions frommany employees, and promote safety and health activities witha unified labor and management approach.
Central Labor-Management Committee
The Central Labor-Management Committee, which is made upof managers including the Group CEO and representatives
from Group company labor unions, meets twice annually. Information concerning safety is shared at these meetings including
the status of safety and health activities pursuant to the Group’s
Safety and Health Promotion Plan, occupational accident occurrence, and initiatives for preventing the recurrence or occurrence of accidents. Committee discusses the establishment of
workplaces where Oji Group employees enable “safety as ourabsolute top priority” and that instill a sense of security among
their families.

Oji Group Integrated Report 2021

Online workplace safety and health meeting

Section chief meeting
Section chief meetings are joined by section chief-level employees working on operational frontlines in Japan. Throughdiscussions, these meetings give participants opportunities togain an accurate understanding of their safety responsibilities,
raise safety awareness, and think about what to do to ensurethat their subordinates will never be injured.
In 2020, the section chief meeting was held for the Group’s
corrugated container production and processing companies
with the theme of “Actions to Address Common Key Issues.”
We strive to level up our safety activities by having participants
share information such as good practices, exchange views,
and conduct workplace visits.

VR-based hands-on risk training

Original content(forklift collision)

Original content(getting caught in a printing roller)

Financial Data & Corporate Data

Safety audits and safety patrols
The Oji Holdings Safety Administration Department and thesafety departments of each COMPANY and Lead Company
conduct safety audits and safety patrols of the companies andworkplaces that they oversee including overseas companies
and workplaces to raise safety and health management levels.
Designated system for special guidance on enterprisesafety management
The Oji Holdings Safety Administration Department and thesafety departments of each COMPANY and Lead Company
established the Designated System for Special Guidance onEnterprise Safety Management. Under this system, companies
and workplaces at which improvements in safety management
are deemed necessary such as those where occupational accidents resulting in a serious injury or death or resulting in a losttime injury have occurred repeatedly within a short period oftime are designated as workplaces needing special guidanceon enterprise safety management. Inspections are conducted
and guidance is provided, not only regarding measures for preventing recurrence but also about safety management systems, improvement plans, the status of activities, and othermatters, to improve the safety management level at each designated workplace.
On-site accident investigation
The Oji Holdings Safety Administration Department and thesafety departments of each COMPANY and Lead Company
immediately visit workplaces where accidents occurred to confirm how and why the accident occurred and countermeasuresand also conduct thorough confirmation and hold discussions
with workplace executives and workplace managers regarding
measures for preventing the recurrence of accidents and daily
safety management activities, thereby providing guidance
aimed at improving the safety management activities of andcreating a better work safety climate at the workplace as awhole.

Convening of safety coordinator meeting and workplacesafety and health meeting online
Due to the states of emergency declared in response to COVID-19,
the Oji Group now conducts safety coordinator meetings, workplacesafety and health meetings, and section chief meetings online.

Sustainability Strategy

Employee Participation

CEO Masatoshi Kaku conferring the award

Management Strategy

99

Safety Audits and Safety Patrols

Award recipientsBusiness Strategy

Safety Performance (Lost Time Injury Frequency Rate)
Lost Time Injury Frequency Rate (LTIFR)* occurring within the
Oji Group continuously declined since 2016, falling to 0.80
(0.74 in Japan, 0.85 overseas) in 2020. According to the Ministry of Health, Labour and Welfare’s Survey on Industrial Accidents (businesses with at least 100 employees), in 2020, therate in manufacturing industries was 1.21 and the rate in thepulp, paper, and paper processing manufacturing industry was
1.54.

Hands-on Risk Training Using Hazard Simulation VR Devices
Installation of devices that simulate hazards and encouraging
personnel to take external courses give workers firsthand experience, contributing to improving employees’ sensitivity torisks and awareness of safety. Beginning in 2020, we are gradually conducting hands-on risk training sessions using VR atworkplaces in Japan and overseas.
In 2020, more than 90% of production-related personnel
across all workplaces in Japan took the hands-on risk training.
The training was also provided for construction workers entering the workplaces on a temporary basis.
Overseas, almost all of the production related workers completed the hands-on risk training at Jiangsu Oji Paper Co., Ltd.
in China, including employees of the local affiliates.
Many participants remarked about the highly immersive VR
video. One said, “In the scene where you crash into a forklift, 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 offollowing rules.”In order to enable participants to learn in an environment
very similar to their everyday workplaces, we are producing
original content which includes scenarios that have ever occurred within the Group. Among these are situations wherein
serious accidents could occur such as collision with a forklift,
getting caught in a printing roller, collision or fall of hoisted load,
getting caught in a conveyor roller, and falling into a pulper.

What the Oji Group Aims For

Safety Initiatives (Case examples)
About the Oji Group

Distribution of Safety and Health Information and Occupational Accident Reports

Original content(collision or fall of hoisted load)

Section chief meeting(before the 2020 state of emergency declaration)

Oji Group Integrated Report 2021

100

Society Human Resource Measures

In the belief that the responsibility to respect human rights is an important element of the global code of conduct, in August2020 we established the Oji Group Human Rights Policy in order to further strengthen and implement initiatives involving
respect for human rights. Efforts to familiarize personnel with the policy include preparing the Handbook on the Oji Group
Human Rights Policy and providing human rights education as part of new manager training, and we will continue familiarizing personnel with the fundamental policies, as well.

In seeking to enhance corporate value, we believe it is important for every employee to embrace diversity of values andflexibility in thinking and to enhance his/her skills. For the Oji Group to grow as a global enterprise “beyond boundaries,” weare implementing human resource strategies aimed at enhancing corporate value 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

Oji Group Human Rights Policy (Outline)●This policy applies to all executives and employees and is reflected in all business activities●We expect all stakeholders to kindly understand and comply with this policy●This policy is based on the United Nations Guiding Principles on Business and Human Rights, and supports and re-Oji Group Human Rights Policy (full text) ➡︎ https://ojiholdings.disclosure.site/en/themes/108/

Handbook on the Oji Group Human Rights Policy(Table of Contents, excerpt)

Management Strategy
Management Philosophy

Oji Group Corporate Code of Conduct and the Oji Group Behavior Standard

As a human resources strategy for enhancing corporate
value, the Oji Group is implementing measures in three areas based on the Oji Group Human Resource Philosophy.
In the context of human resources development, we arefocusing on developing human resources who can accomplish management strategies, particularly global human resources.
As part of working style reforms and health and productivity management, we are striving to reduce total working

hours and improve operational efficiency, while also concentrating on health and productivity management in consideration of our employees’ health.
In terms of inclusion and diversity, we continue to takesteps in line with the diversity promotion policies in seeking to build workplaces where all employees, regardless of
their background, can fully demonstrate their potential
with peace of mind.

Diversity (condition)

A variety of human resources exist in a good condition
regardless of attributes such as gender, age, disability, or
nationality

Inclusion (tolerance and entrustment)

Our Goal

By acknowledging, understanding, respecting, andaccepting one another, a diversity of human resources areable to flourish in their work with their skills and personality

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

Development of abilities and careersof diverse human resources

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

Change in mindset and behavior of management level employees
Further instill the role-based personnel grade system and raise productivity
Respect for human rights (establishment of the Oji Group Human Rights Policy)

1 Human Resource Development
The Oji Group is developing human resources in line with
the Oji Group Human Resource Philosophy, and is striving
to develop global human resources who can accomplish
management strategies. We are constructing facilities for
employee exchange and training in Fujinomiya City, Shizuoka Prefecture. Going forward, we will review our current training system on the premise of selective humanresource development training centered on global training, and provide cross-COMPANY training sessions
across the Group.

Financial Data & Corporate Data

rights● Internationally recognized human rights● Oji Group Human Rights Policy● Specific activities (human rights due diligence)● International human rights norms and the UN Guiding Principles
on Business and Human Rights● Sustainable Development Goals (SDGs)● Common human rights violations (harassment prevention rules)

Sustainability Strategy● The Oji Group’s approach to respecting human rights● Background on the need for corporate efforts to respect humanManagement Strategy

Since the formulation of the Oji Group Human Rights Policy in August 2020, 165 people have completed human rights
education as part of new general manager training and new manager training. Furthermore, we have prepared the Handbook on the Oji Group Human Rights Policy, which gives information centered on human rights, such as the backgroundon the need for corporate efforts to respect human rights, internationally recognized human rights, and the Sustainable
Development Goals (SDGs). Group personnel have been familiarized with the content, and the handbook has been madeavailable on our intranet website.
To familiarize personnel even further with the policy, in FY2021 we will continue to provide training while also conducting
video-based human rights education.

Change in thinking｜Imaginative capabilities linked to management｜Human resources development｜Global perspective

Business Strategy

Activities for FY2020

Prioritization of compliance｜Understanding of management strategies and policies｜Proactive action
What the Oji Group Aims For

spects international norms such as the International Bill of Human Rights and the ILO Declaration on Fundamental Principles and Rights at Work
●We continuously strive to identify, assess, prevent, mitigate, verify, and provide relief from negative effects on humanrights that occur in or that are exacerbated by corporate activities (human rights due diligence)●We provide suitable education to all executives and employees to promote understanding and effective implementationof this policy●We provide relief via the proper procedures when a negative effect on human rights is discovered●We disclose and report on the status of efforts to respect human rights on our website and elsewhere

About the Oji Group

Society Respect for Human Rights

We switched to online training in FY2020 to prevent the spread of
COVID-19

101

Oji Group Integrated Report 2021

Oji Group Integrated Report 2021

102Society Human Resource Measures

Main training content (Organized by Oji Management Office)Name of training

Global human resource
development

OutlineNew employee global challenge

Employees in theirfirst year

Selected new employees are sent to an over-seas site for
one week

Overseas training for young employee(as trainees)

Employees in theirfifth to tenth year

Three months of language training, followed by two years
of practical experience at an over-seas site. Develops immediately effective human resources

Oji Global School

Employees at theage of 31 to 45

Six months of language training in Japan, followed byoverseas assignment. Develops effective human resources
for international business in a short time

Online English conversation classes

All employees who
apply

Increases overall English ability and develops cross-culturalcommunication 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

Career building training for employeeson the generalist track

Pre-management
employees on thegeneralist track

Understand the functions required of managers, and improve capabilities for setting and solving issues

3rd year employees
in the generalist track

Assess their own abilities and establish goals for careerself-relianceManagement training

Managerial personnel
development

Career design training for young employees on the generalist track

Career design

Personal-empowerment system

Qualified individuals

Support employees in their autonomous andcontinuing development of their abilities

measures aim to create working environments where every employee can actively work and exercise their potential with sound mental and physical health.
In recognition of these measures, in March 2021 wewere recognized under the 2021 Certified Health and Productivity Management Organization Recognition Program(large enterprise category). Going forward, we will be preparing a handbook to help employees balance work andmedical treatment while providing seminars to expand
employees’ knowledge of mental health care means suchas self-care and consultations with supervisors.

Examples of health and productivity management activities
Health examinations

COVID-19 measures⃝ Health examinations and follow-ups (second opin-⃝ Workplace vaccinations (head office area, etc.)

ion recommendations)⃝ Introduction of special leave for getting vaccinated⃝ Measures to combat cancers diagnosed in women

Other⃝ Add more check items to non-statutory examina-⃝ Flu vaccinations (cost subsidized)tions⃝ Specific health guidanceStress checks⃝ My Health Portal (Oji health website)⃝ Conduct stress checks⃝ Partnership with Mitsui Memorial Hospital

Health Consultation Office⃝ Hourly use of accumulated annual leave (to go to

the hospital)⃝ Oji Group Health Consultation OfficeBusiness Strategy

Support for employee
ability development

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. As measures to reduce illness risk, including
lifestyle-related diseases and mental health, we provide avariety of health checkups, improve the Health Consultation Office, and conduct return to work programs. These

What the Oji Group Aims For

Eligible employees

About the Oji Group

Goals

Health and productivity management measures

2 Working Style Reforms and Health and Productivity Management
which we grant researchers with particularly high levels of
specialized knowledge discretion regarding their work
styles and provide working environments that allow them
to focus on research.
Moreover, we introduced the “retirement at age 65” system in FY2017 to enable employees to demonstrate theirknowledge, skills, and abilities to the fullest and work withenthusiasm. (Introduced at 17 Group companies)

3 Inclusion & Diversity
The Oji Group is promoting “inclusion & diversity” with aview to enabling 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.
The Oji Group has established the Diversity Promotion
Committee, chaired by the Group CEO, to share diversity
promotion policies and goals, as well as to support andconfirm the progress of its promotion plans, across theGroup. Inclusion & diversity measures are being carriedout with a focus on three pillars: (1) change in mindset andbehavior of management level employees, (2) development of abilities and careers of diverse human resources,and (3) improvement in work-life management (working
styles and health and productivity management).

Sustainability Strategy

Reduction of total working hours (28 Oji Group companies and divisions in the Tokyo Main Office region)
Diversity promotion system(hours/year)
2,100

2,050

Reduction of
1,986

2,000

231 hours (11%)(From FY2013 to FY2020)

1,933

1,861
1,839

1,800

2013

2014

2015

2016

2017

1,825

1,827

2018

2019

Management
Committee
Diversity Promotion Committee

Advisors(chaired by Oji Holdings Group CEO)

Outside experts

Secretariat

1,819(Human Resource Diversity Group, Human Resources Division,
Group Human Resources Unit, Oji Management Office)2020 (FY)Oji Holdings

103

Oji Group Integrated Report 2021

Each
COMPANY

Corporate
Management
Groupcompanies

Sharedservicecompanies

Oji Group Integrated Report 2021

Financial Data & Corporate Data

1,900

Examples of measures to institute more flexible
working styles⃝ Utilization of flex-time system⃝ Setting limits on overtime work
⃝ Enabling full transfer of time off when work is
performed on holidays⃝ Encouraging employees to take annual paid
leave
⃝ Working from home (in response to COVID-19)

Management Strategy

In order to thoroughly pursue objectives in line with management strategies, we are taking steps to reduce total
working hours and improve operational efficiency with afocus on further implementing the role-based personnel
grading system and boosting productivity.
Furthermore, with a view to the creation of innovativevalue, we have implemented the certified researcher system and creative personnel development system under104

Society Contribution to Local Communities and Society

Change in mindset and behavior of managementlevel employees
The Oji Group believes that changing the mindset andbehavior of management level employees is particularly
important. In this context, we have conducted diversity
management training for new general managers, as wellas online training in diversity management for roughly
2,000 section managers throughout the Group in FY2020.
The Group also conducts awareness surveys as indicators to assess activities.

At each of its bases around the world, the Oji Group undertakes a range of social contribution initiatives including the promotion of culture and sports under the Management Philosophy of the Oji Group including “Contribution to the Future andthe World” and “Harmony with Nature and Society.”

2.9
2.5
2.0

1.8
42

44

2014

2015

56

2016

66

2017

3.5

3.6

82

85

2019

2020 (FY)

3.1
72

2018

Percentage of Female Hirees for Generalist-Track Positions (16 Group companies in Japan)
Number recruited (persons)

27

22

43

Percentage of female hirees (%)

44

41
33

30

34

33

29

36
30

22

17

2014

2015

2016

2017

2018

2019

2020 (FY)

Support for balancing work and nursing careInterview
beforereturning towork

Pre-childbirthinterview

Seminars for
employees returningfrom childcare leave

Intranet website with information on balancing work and childcare
Handbook on balancing work and childcare

Oji Group Integrated Report 2021

Offering information before
facing nursing care

Return to work
MeasuresChildcare
leave

Provision of
information

Measures
Provision of
information

Postnatal
leave

The Fujihara Foundation of Science

Oji HallSportsThe 61st Fujihara Award presentation ceremony(FY2020)

Award went to Maro World Vol. 40 by Fuminori
Maro Shinozaki and Maro Company

The Red Eagles Hokkaido pressed new uniform
conference

The Fujihara Award presented by the
Fujihara Foundation of Science, which
was established by Ginjiro Fujihara, is
known as a historic and prestigious
accolade that honors scientists who
have made distinguished contributions
to the development of Japan’s scienceand technology. Several past recipients went on to win Nobel Prizes.
Oji Holdings supports the foundation, mainly through financial assistance,and contributes to the development ofscience and technology in Japan.

Used to host a range of events andengage in our hall rental business, this315-seat music hall is highly regarded
both in Japan and overseas. Maro Worldis a performance begun in 2004, plannedand organized by Oji Hall and violin performer Fuminori Maro Shinozaki. In recognition of the performance’s contribution
to the development of the next generation, and of the excellent performing
quality and entertainment value, Maro
World was awarded the Chamber Music and Chorus Category Award in the
33rd Music Pen Club Awards.

The Oji Baseball Team, which is basedin Kasugai City, Aichi Prefecture, contributes to the local community whileaiming to win the inter-city baseball
tournament and the national championship.
The Oji Eagles, an ice hockey team
based in Tomakomai City, Hokkaido,
was renamed as Red Eagles Hokkaido, as it transitioned from a company-owned team to a club team in April
2021. The team partners with numerous companies and organizations andis working to develop an ice hockey
culture.

Nursing care seminars

Assistance to employees
under nursing care
Nursing careconsultations

Intranet website with information on balancing work and nursing careFinancial Data & Corporate Data

105

Childbirth

The name “SODATERASU”, embodies three meanings:“sodate [to raise children] (carefully and soundly)”, “terasu[to illuminate] (the future brightly)” and “terrace (safe playon the nursery school playground)”.

Sustainability Strategy

Prenatal
leave

The Group opened Nepia SODATERASU, a nursery, in
April 2018 at a facility adjacent to a Group condominium
located in Edogawa-ku, Tokyo to help employees balancechild-care and work and eventually to contribute to theelimination of children on the waiting list for nursery schools,
in line with our corporate social responsibilities. The facility
is also available for use by local residents.

Management Strategy

Main Initiatives⃝ Nursery subsidies for employees who return towork early from their childcare leave⃝ Paternity leave system for male employees(paid leave of five consecutive days)⃝ Hourly use of accumulated annual leave(for childcare/nursing care)⃝Leave system for employees to accompany
their spouses’ overseas transfers⃝ Priority guidance on watching services for theelderly (nursing care)

Support for Balancing Work and Childcare or Nursing Care
Support for balancing work and childcare

Nepia SODATERASU, company-managed childcare facility

Business Strategy

Improvement in work-life management
The Oji Group has introduced various systems that enable
employees with childcare or nursing care responsibilities
to continue to actively participate in their work. We makethe systems known to our employees and share casestudies of how the systems are utilized through the handbook on balancing work and childcare, handbook on balancing work and nursing care, and our intranet website.
In addition, we regularly conduct seminars for employees
returning from childcare leave as well as seminars to prepare employees for sudden time off for nursing care. We
also encourage male employees to engage in childcare,and in FY 2020 83.5% of eligible male employees took
paternity leave.

Number of female managers
Percentage of female managers

What the Oji Group Aims For

Development of abilities and careers of diverse
human resources
Promoting the active participation of women We haveset a goal of raising the percentage of female managers
to 5.5% by the end of March 2025. The ratio was 3.6%
by the end of March 2021. In FY2020 we revamped ourtraining that was previously for women as career building
training for employees on the generalist track, to develop
the abilities of both men and women as a co-ed training
program.
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, 2021, the employment rate of people with disabilities was 2.31% (2.27% a
year earlier) for the six major companies in the Group (including Oji Holdings), satisfying the statutory employment
rate of 2.3%. (The groupwide rate was 2.04% (2.03% a
year earlier).)
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 containerand folding carton processing businesses. The internships
are run appropriately based on the internship program.

Percentage of female managers (16 Group companies in Japan)

About the Oji Group

Society Human Resource Measures

Handbook on balancing work and nursing care

Oji Group Integrated Report 2021

106

Message from the Director in Charge of FinanceDirector of the Board, Senior Executive Officer

Hiroyuki Isono■ Net Sales and Overseas Sales Ratio■ Net Assets per Share, Profit per Share, and ROE■■ Net sales (¥billion)● ● Overseas sales ratio (%)■■ Net assets per share (¥) ■■ Profit per share (¥)● ● ROE (%)

1,439.9

28.2

Oji Group Integrated Report 2021

29.3

758.28
58.78

52.52
40.74

36.64

7.7

50.13
8.5

6.9

6.7
5.6

2016

2017

2018

2019

2020

(FY)

2016

2017

2018

2019

2020

(FY)

FY2020 Business Performance
In FY2020, COVID-19 became a global pandemic, weakened demand for many of Oji Group’s products, including printing
and communication paper, and softened the pulp market. For these reasons, net sales were 1,359.0 billion yen, a decrease of 148.6 billion yen (down 9.9%) year on year. With regard to operating profit, we strove to recover from the impact
of decreased demand through cost reductions, and lower raw material and fuel prices also served to increase profit. However, operating profit was 84.8 billion yen, a decrease of 21.3 billion yen (down 20.1%) year on year, and profit attributableto owners of parent was 49.6 billion yen, a decrease of 8.5 billion yen (down 14.7%) year on year.
Financial Position
Turning to cash flow, profit before income taxes declined 17.3 billion yen year on year due to the worsened business performance, but amid a decline in product sales volume, we worked to reduce working capital through means such as reducing inventory, resulting in cash flows provided by operating activities of 127.1 billion yen (cash flows provided byoperating activities for the previous fiscal year were 124.5 billion yen).
Cash flows used in investing activities were 91.6 billion yen (cash flows used in investing activities for the previous fiscal
year were 64.8 billion yen) due to acquisition of property, plant, equipment and intangible assets. The acquisition of property, plant, equipment and intangible assets included strategic investments in growth fields as established in our medium-term management plan and investments for improving quality, increasing productivity, ensuring safety, and conserving
the environment.
Cash flows provided by financing activities were 19.9 billion yen (cash flows used in financing activities for the previous fiscal year were 58.1 billion yen) due to the increase in interest-bearing debts.
As a result of these financial activities, total assets at the end of FY2020 stood at 1,981.4 billion yen, an increase of 96.2
billion yen from the end of the previous fiscal year. The increase was due to increases in cash and deposits, property, plantand equipment and net defined benefit asset, despite a decrease in inventories. Liabilities totaled 1,115.8 billion yen, an
increase of 62.2 billion yen from the end of the previous fiscal year, due to the increase in interest-bearing debts. Net assets totaled 865.6 billion yen, an increase of 33.9 billion yen from the end of the previous year, due to the increase in retained earnings.
Consolidated Financial Forecasts for FY2021
Our consolidated financial forecasts for FY2021 are based on a moderate economic recovery and factor in the early realization of the effects of capital investment, cost reductions, and an increase in pulp sales prices. Accordingly, the Oji Group
anticipates net sales of 1,450.0 billion yen, operating profit of 120.0 billion yen, ordinary profit of 120.0 billion yen, andprofit attributable to owners of parent of 70.0 billion yen.
FY2021 is the final year of the three-year medium-term management plan launched in FY2019. The global business environment is undergoing major changes due to the spread of COVID-19, and many opportunities and risks are expected to
expand, including diversification of consumption structures, lifestyles, and working styles. The Oji Group will continue to
steadily implement strategic measures to improve our corporate value in line with our three fundamental policies of “profitability improvement of domestic business,” “expansion of overseas business,” and “promotion of innovation.” We will also
promptly and appropriately implement business structure reforms in light of changes in business environment caused by
COVID-19.

Oji Group Integrated Report 2021

Financial Data & Corporate Data

107

635.95699.12684.50681.52

Sustainability Strategy

The Oji Group values dialogue with investors and analysts through IR activities as well as the timely disclosure of accurate
information, including summaries of consolidated financial and business results, securities reports, business reports, andintegrated reports.
In addition, with regard to returns to the shareholders who support the Oji Group, it is our fundamental policy to maintainstable dividends while at the same time giving consideration to internal reserves in order to prepare for future management
measures. Based on this policy, we implemented an ordinary dividend of 14 yen per share for FY2020, the same as thatfor the previous fiscal year, and also introduced a new shareholder benefits program.
Going forward, we will apprehend the current unexpected difficulty of the COVID-19 pandemic as the new normal, andaim to optimize the Group’s business portfolio through effective investment activities.

29.9

1,359.0

Management Strategy

Meanwhile, with regard to business performance in FY2021, the Oji Group anticipates a recovery in performance as it factors in the realization of the effects of capital investment, cost reductions, and an increase in pulp sales prices based on amoderate economic recovery. In order to respond to the structural changes in society and the economy wrought by the
COVID-19 pandemic, the Group will strive to maintain and improve its A+ bond rating (Rating and Investment Information,Inc.); raise funds flexibly; and continue to actively engage in M&As, capital investment, and research and development ingrowth fields.

32.0

1,507.6

Business Strategy

Regarding the Group’s business performance in FY2020, due to the influence of the global economic slowdown causedby the COVID-19 pandemic, demand for products both domestically and overseas took a downturn, and both sales andprofits significantly dropped particularly in the first and second quarters compared with those of FY2019. Against this backdrop, we worked to secure cash flows from operating activities by reducing our inventory of products and raw materials in
addition to cost reduction measures such as reducing expenses. At the same time, in response to risks on the financialside, we strove to maintain liquidity on hand by continuing the accumulation of cash and deposits we started in FY2019. In
addition, with an eye on the post-COVID-19 world, we are steadily moving forward with key strategies in order to achievesustainable growth in the future. The key strategies include measures to increase production in growth markets, such asincreasing the number of containerboard machines at GS Paperboard & Packaging Sdn. Bhd.; business structure reforms
involving the retrofitting of an Oji Paper Co., Ltd. newsprint machine into a containerboard machine; and the acquisition oftreasury stock held by non-controlling shareholders by Japan Brazil Paper and Pulp Resources Development Co., Ltd.,the parent company of Celulose Nipo-Brasileira (CENIBRA) in Brazil (due to further acquisition of treasury stock in May
2021, the Group now holds all voting rights of the company). We raised the capital necessary for these investments fromoutside sources, by comprehensively considering factors such as interest rate trends, the financing environment, and thetiming of repayments of existing loans and bonds.
As a result of these initiatives, with regard to financial aspects, the balance of interest-bearing debts at the end of FY2020
increased by 66.0 billion yen from the end of the previous fiscal year, reaching 647.7 billion yen. The balance of net interest-bearing debts (interest-bearing debts, minus cash and cash equivalents, etc.) increased by 14.1 billion yen from theend of the previous fiscal year, totaling 511.4 billion yen. The net D/E ratio (net interest-bearing debts, divided by net assets) was 0.6, maintaining a level below our performance indicator target of 0.7.

31.0

1,551.0

What the Oji Group Aims For

The Oji Group’s Financial Policy
The Oji Group is implementing a variety of management strategies on the basis of the fundamental policies of the FY20192021 Medium-term Management Plan: “profitability improvement of domestic business,” “expansion of overseas business,” and “promotion of innovation,” and through “contribution to a sustainable society,” we aim to become a global
corporate group that can maintain stable consolidated operating profit of at least 100.0 billion yen. We have establishedperformance indicator targets based on these fundamental policies. On the basis of improving capital efficiency and stable
returns to shareholders, we established a target ROE of 10.0%. Meanwhile, we decided to maintain our current net D/E
ratio (the ratio was 0.7 for FY2018, when the current medium-term management plan was established), as another target.
These targets have been set in the financial strategies as indicators for strengthening our ability to generate cash flows
from operating activities while appropriately managing funds raised from outside sources and investment returns andmaintaining an optimum level of net interest-bearing debts to net assets, in order to prepare for drastic changes in thebusiness environment, which we have seen in the current fiscal year, and for strategic investment for growth.

1,485.9

About the Oji Group

Optimizing the Group’s Business Portfolio
via Effective Investment Activities

108

Financial Data Highlights

Segment

Status of Individual Segments

FY2016FY2017FY2018FY2019FY2020(¥ million)

1,439,855

1,485,895

1,550,991

1,507,607

1,358,985

Operating profit(¥ million)

70,24370,781

110,212106,125

Ordinary profit(¥ million)

52,94965,958118,370

Profit attributable to owners of parent(¥ million)

40,27036,222

Total assets(¥ million)

1,901,029

Net assets(¥ million)

Net sales

Operating profit

Household and Industrial Materials(¥ million)

647,489

38,09084,793Functional Materials(¥ million)

182,338

11,480101,289

83,061

Forest Resources and Environment Marketing Business(¥ million)

245,334

16,651

51,97758,181

49,635

Printing and Communications Media(¥ million)

243,957

11,156

1,960,753

1,951,369

1,885,280

1,981,438

Other(¥ million)

270,188

6,752

759,198

810,011815,406

831,657

865,606

Subtotal(¥ million)

1,589,308

84,132

Profit per share

(¥)

40.74

36.64

52.52

58.78

50.13

Adjustments(¥ million)(230,323)

660

Net assets per share(¥)

635.95681.52684.50699.12758.28Total(¥ million)

1,358,985

84,793Operating profit, Ordinary profit, Profit attributable to owners of parent, Operating profit margin

Interest-bearing debts, Net interest-bearing debts, and Equity ratio

Net sales composition by business segment■■ Operating profit (¥ billion) ■■ Ordinary profit (¥ billion)■■ Profit attributable to owners of parent (¥ billion)● ● Operating profit margin (%)■■ Interest-bearing debt (¥ billion) ■■ Net interest-bearing debt (¥ billion)● ● Equity ratio (%)■ Household and Industrial Materials

110.2

118.4
106.1

33.1

66.0

52.9

52.0

40.3

36.2
4.8

2016

2017

■ Printing and Communications Media■ Other(%)■ Other

(%)

37.9

36.7

FY202040.8

FY2019

38.8

11.5

15.4

15.3

17.0

7.0

58.2
6.2

677.3

625.4

647.4

620.6

587.6

49.6

535.0

581.7

647.7

12.2

16.1

16.5

16.4

511.4

497.3

7.1

Operating profit composition by business segment
2018

2019

2020 (FY)

2016

2017

2018

2020 (FY)2019

Changes in Cash flows■■ Cash flows from operating activities (¥ billion)■ Household and Industrial Materials■ Functional Materials

45.3

FY2020■■ Cash flows from investing activities (¥ billion)

13.3

8.0

66.6

14.6

27.4

10.7

8.5

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

127.1

124.5
74.0

38.8

91.6

64.8

40.2

109

Cash in Cash out

Cash in Cash out

Cash in Cash out

Cash in Cash out

Cash in Cash out

2016

2017

2018

2019

2020

Oji Group Integrated Report 2021

Financial Data & Corporate Data

59.7

140.6

123.2

19.8

35.5

74.0

49.2

157.4

13.6

■ Printing and Communications Media■■ Free cash flows (¥ billion)
FY2019117.2■ Forest Resources and Environment Marketing Business

Sustainability Strategy

4.9■ Forest Resources and Environment Marketing Business

101.3

84.8 83.1
70.8

70.2

34.7

34.4

■ Functional Materials

Management Strategy

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

Business Strategy

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.

What the Oji Group Aims For

Net sales

Segment

About the Oji Group

Changes in Assets and Profit/Loss(FY)Oji Group Integrated Report 2021

110

Consolidated Financial Statements(¥ million)

Previous consolidated Current consolidated
fiscal year
fiscal year
(March 31, 2020)(March 31, 2021)

ASSETS(¥ million)

Previous consolidated fiscal year Current consolidated fiscal year
⎛ From April 1, 2019 ⎞⎜⎜⎝ To March 31, 2020 ⎠(March 31, 2021)

Current liabilities⎛ From April 1, 2020 ⎞⎜⎜⎝ To March 31, 2021 ⎠

1,507,607

1,358,985

Cost of sales

1,143,665

1,031,553

363,942

327,431

141,674

131,590

73,943

130,529

Notes and accounts payable-trade209,669

197,950

Gross profit

Notes and accounts receivable-trade

301,682

297,718

Short-term loans payable

172,027

129,963

Selling, general and administrative expenses

Short-term investments

10,381

5,725

Commercial paper

14,000−Freight expenses

Merchandise and finished goods

98,48386,440Current portion of bonds

20,000−Warehouse expenses

7,006

6,506

Work in process

23,467

19,273

Accounts payable-other

16,33020,741

Salaries and wages

52,36051,921

Raw materials and supplies

94,94689,090Accrued expenses

48,48548,874Retirement benefit expenses

1,214

853

Short-term loans receivable

3,749

4,324

Income taxes payable

22,984

11,526

Depreciation and amortization

5,582

6,343

Accounts receivable-other

20,232

19,608Other

29,47932,657

Other49,97845,422Other

15,407

17,734

Total current liabilities

532,976

441,713

Allowance for doubtful accounts(1,811)(1,675)640,484

668,770

Total current assets

242,638
84,793

Bonds

80,000155,000

Non-operating incomeLong-term loans payable

295,647

362,718

Interest income

2,172

1,121

Deferred tax liabilities

48,41259,892

Dividends income

3,146

3,170

Buildings and structures

670,400

685,779

Deferred tax liabilities for land revaluation

Accumulated depreciation(482,113)(494,548)

Net defined benefit liability

Buildings and structures (Net)188,286

191,231

Long-term deposits

Machinery, equipment and vehicles

2,376,088

2,389,121

Other

Accumulated depreciation(2,078,455)(2,090,184)

Total non-current liabilities

297,632

298,937

Machinery, equipment and vehicles (Net)257,816
106,125

Total liabilities

60,76560,791(55,205)(55,099)

Shareholders’ equity

7,739

Equity in earnings of affiliates

2,889

142

54,010Exchange gain

−

4,616

7,492

7,305

Insurance claim income

760

1,894

27,07827,450

Other

5,335

3,630

520,647

674,117

Total non-operating income

14,305

14,576

1,053,623

1,115,831

6,948

6,791

−

2,836

Non-operating expenses
Interest expenses

NET ASSETS

Loss on sublet of facilities

5,560

5,691

Common stock

103,880

103,880

Exchange loss

4,797

−

Land

235,700

239,052

Capital surplus

110,750

109,100

Other

7,396

6,680

Forests

109,664

105,560

Retained earnings

457,568

493,224

Total non-operating expenses

19,142

16,308101,289

83,061

1,513

2,866

Tools, furniture and fixtures (Net)85,584

Treasury stock(13,577)(13,400)

Ordinary profit

50,58755,844

Total shareholders’ equity

658,623

692,805

Extraordinary income

Accumulated depreciation(15,738)(19,767)

Leased assets (Net)34,84936,077

Valuation difference on available-for-sale securities

21,00431,654Gain on sale of businesses−

906

Construction in progress

58,241

79,279Deferred gains (losses) on hedges

(957)

2,721

Profit on subsidiary status change from equity method affiliate to consolidated subsidiary−808

1,015,794

1,041,413

Revaluation reserve for land

5,813

5,684

Other

5,579

1,164

Total extraordinary income

7,092

5,746

4,672

3,122

Total property, plant and equipment
Intangible assets
Goodwill
Other

8,388

9,049

Total intangible assets

13,06012,171

Investments and other assets

Insurance claim income

Accumulated other comprehensive income

Foreign currency translation adjustment

2,390(6,418)Remeasurements of defined benefit plans

5,261

24,533Extraordinary losses

Total accumulated other comprehensive income

Loss on disaster

2,583

2,065

Loss on business restructuring

2,758

1,977

1,910

1,459

58,176

216

199

Non-controlling interests

139,305

114,426

Loss on disposal of non-current assets

831,657

865,606

Extra retirement payments

1,885,280

1,981,438

150,831

163,961Long-term loans receivable

7,558

6,933

Long-term prepaid expenses

3,998

3,692

Net defined benefit asset

32,01960,993

Deferred tax assets

7,184

7,074

15,25817,379

(910)

(952)

215,941

259,083

1,244,796

1,312,668

Profit attributable to non-controlling interests

6,319

2,062

1,885,280

1,981,438

Profit attributable to owners of parent

58,181

49,635Investment securities

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

Oji Group Integrated Report 2021

Total net assets
Total liabilities and net assets

436

995

Other

2,554

1,425

Total extraordinary losses

10,242

7,923

Profit before income taxes

98,13880,883

Income taxes-current

35,01828,830

Income taxes-deferred(1,380)354

Total income taxes

33,637

29,185

Profit64,50051,698

Oji Group Integrated Report 2021

Financial Data & Corporate Data

33,512

Share acquisition rights

Sustainability Strategy

85,858

Leased assets

Plantations

Management Strategy

Tools, furniture and fixtures
Accumulated depreciation

7,803
54,213Business Strategy

Property, plant and equipment

Total selling, general and administrative expenses
Operating profit

Non-current liabilities

What the Oji Group Aims For

Net sales

Cash and deposits

Non-current assets

111(March 31, 2020)

LIABILITIESCurrent assets

Consolidated Statements of Income

Previous consolidated Current consolidated
fiscal year
fiscal year

About the Oji Group

Consolidated Balance Sheets112

Third-Party Independent Assurance Report

Consolidated Financial Statements

Previous consolidated Current consolidated
fiscal year
fiscal year⎜⎜

⎛ From April 1, 2019 ⎞⎛ From April 1, 2020 ⎞⎝ To March 31, 2020 ⎠⎝ To March 31, 2021 ⎠⎜Cash flows from operating activities(¥ million)

Previous consolidated Current consolidated
fiscal year
fiscal year

⎛ From April 1, 2019 ⎞⎛ From April 1, 2020 ⎞⎝ To March 31, 2020 ⎠⎝ To March 31, 2021 ⎠
⎜

⎜

⎜
⎜

⎜

Cash flows from financing activities

Profit before income taxes

98,13880,883

Depreciation and amortization

63,379Amortization of goodwill

1,898

17,715(4,049)62,758Net increase (decrease) in commercial paper

11,000(14,000)

1,099

Proceeds from long-term loans payable

4,203

71,279(43,250)

Depletion of standing timber

8,656

6,958

Repayment of long-term loans payable(80,650)

(211)

(52)

Proceeds from issuance of bonds

29,78974,561(Increase) decrease in net defined benefit asset(2,468)(2,913)

Payment for redemption of bonds(20,000)(20,000)−(24,162)

Increase (decrease) in net defined benefit liability

1,750

760

Interest and dividend income(5,319)(4,292)

Repayments of lease obligations(4,770)(4,786)

Interest expenses

6,948

6,791

Dividends paid

(12,883)(13,888)

Exchange loss (gain)

2,475(3,946)Other(2,552)(1,770)Equity in (earnings) losses of affiliates(2,889)(142)

Net cash provided by (used in) financing activities(58,148)

19,932

Purchase of treasury shares of subsidiaries

1,459

Effect of exchange rate change on cash and cash equivalents(1,737)(2,169)1,977

Net increase (decrease) in cash and cash equivalents(196)

53,310Loss (gain) on sale of businesses

−

(906)

Cash and cash equivalents at the beginning of the year

82,79482,390Loss (profit) on subsidiary status change fromequity method affiliate to consolidated subsidiary

−

(808)

Increase in cash and cash equivalents
resulting from mergers of subsidiaries

97(Increase) decrease in trade receivables

31,7291,870(Increase) decrease in inventories(1,968)

20,163

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

(216)

(39)

Increase (decrease) in trade payables(42,609)(11,933)

Cash and cash equivalents at the end of the year

82,390135,669

Other(10,176)

6,807

Subtotal

154,002

166,535

6,231

5,397

Interest paid

(5,892)(5,623)

Income taxes paid

(29,850)(39,202)

Net cash provided by operating activities

124,491

127,107

Proceeds from sales and redemption ofshort-term investments

2,730

−

Payment for acquisition of property, plant,
equipment and intangible assets(92,454)(94,674)

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

594

854

Payment for acquisition of investment securities(1,190)(1,916)

Proceeds from sales and redemption of
investment securities

25,543

1,163

Payment for loans receivable(1,113)(1,066)

Proceeds from collection of loans receivable

2,383

1,396

Other

(1,295)

2,682

Net cash used in investing activities(64,801)(91,559)

Management Strategy

1,910
2,758

Business Strategy

Loss on disposal of non-current assets
Business structure improvement expenses

What the Oji Group Aims For

Net increase (decrease) in short-term loans payable

Increase (decrease) in allowance for doubtful accounts

Interest and dividend income received

About the Oji Group

Consolidated Statements of Cash Flows

Cash flows from investing activities

Financial Data & Corporate Data

Oji Group Integrated Report 2021

Sustainability Strategy

113

Oji Group Integrated Report 2021

114

List of Affiliated Companies

Oji Industrial Materials Management Co., Ltd.
Oji Materia Co., Ltd.
Hokuyo Shiko Co., Ltd.
Utsunomiya Shiko Co., Ltd.
Shin Nihon Feather Core Co., Ltd.
Saga Itagami Co., Ltd.

Oji Container Co., Ltd.

Oji Nepia Co., Ltd.

Functional Materials
COMPANYOji Functional Materials Progressing Center Inc.

Shared Service
Companies

Harta Packaging Industries Sdn. Bhd.
Harta Packaging Industries (Perak) Sdn. Bhd.
Harta Packaging Industries (Selangor) Sdn. Bhd.
United Kotak 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.

People & Grit (M) Sdn. Bhd.
People & Grit Marketing Sdn. Bhd.
Supplymark Sdn. Bhd.
We Love Marketing Sdn. Bhd.
PT Indo Oji Sukses Pratama * Equity-method affiliate
PT Oji Indo Makmur Perkasa * Equity-method affiliate

Oji F-Tex Co., Ltd.
Ebetsu Oji Shigyo Co., Ltd.
Sunshine Oji (Shouguang) Specialty Paper Co., Ltd.
* Equity-method affiliate

Sahakij Packaging Co., Ltd.

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 Intertech,Inc.
Oji Interpack India Pvt. Ltd.
Oji Interpack Vietnam 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.
Oji Packaging Co., Ltd.
Oji Adba Co., Ltd.
Kyushu Package Co., Ltd.

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 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.
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)
Huizhou Nanyou Forest Development Co., Ltd. (KPFL)

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.

Ishizuka-Oji Paper Packaging Co., 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.

* Equity-method affiliate

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.

Financial Data & Corporate Data

Corporate Management
Group

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.

Sustainability Strategy

Printing andCommunications MediaCOMPANYOji Tac Co., Ltd.
New Tac Kasei Co., Ltd.
Oji Kinocloth Co., Ltd.
Oji Kinocloth (Shanghai) Co., Ltd.
Chuetsu Co., Ltd.

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

Management Strategy

Forest Resources andEnvironment Marketing
COMPANYOji Paper Nepia (Suzhou) Co., Ltd.
Oji Asia Household Product Sdn. Bhd.
OAHP Marketing Sdn. Bhd.

Oji Asia Packaging Sdn. Bhd.
GSPP Group

Business Strategy

Household andConsumer 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.

About the Oji Group

Industrial Materials
COMPANY

Excerpts from consolidated subsidiaries, non-consolidated subsidiaries, and equity-method affiliates (as of March 31, 2021)

115

Oji Group Integrated Report 2021

Oji Group Integrated Report 2021

116

Corporate Data / Stock Information

A Year at the Oji GroupPT Oji Sinar Mas Packaging commences
commercial production

Oji Eagles announce
conversion to a club team,with the new team name
Red Eagles Hokkaido

Company Profile (as of March 31, 2021)
Company nameOji Holdings Corporation

Director of the Board, President

Masatoshi Kaku (appointed April 1, 2019)

Headquarters address

7-5, Ginza 4-chome, Chuo-ku, Tokyo 104-0061 Japan

Start of businessFebruary 12, 1873

Corporate establishment

August 1, 1949

Capital¥103,880 million

Total number of authorized shares

2,400,000,000 shares

Total number of issued shares(treasury stocks included in the total)

1,014,381,817 shares (22,271,458 shares)

Number of shareholders

67,159Number of employees of the consolidated Group

36,034

Support for the recommendations of the
Task Force on Climate-related Financial
Disclosures (TCFD)
Hana Celeb awarded the Grand Prize at theJapan Naming Award 2020
Commenced sale of nepia Premium Doubled Soft Toilet Rolls

Optimized transport box by using
automatic packing System “Carton
Wrap” awarded the Minister of
Economy, Trade and Industry Award at
the Japan Packaging Contest 2020

Listing stock exchangeTokyo Stock Exchange

Securities Identification Code

3861

Share register manager and accountadministration authority for special accounts

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

Establishment of Environmental
Vision 2050 and Environmental
Action Targets 2030

October

Ishizuka-Oji Paper Packaging
commences liquid paper packaging business

97,197

9.8

Custody Bank of Japan, Ltd. (Trust account)

64,605

6.5

Custody Bank of Japan, Ltd. (Trust account 4)

34,808

3.5

Sumitomo Mitsui Banking Corporation

31,668

3.2

Nippon Life Insurance Company

25,6582.6

Mizuho Bank, Ltd.

21,636

2.2

Oji Group Employee Stock-holding Association

19,9332.0

The Norinchukin Bank

16,654

1.7

STATE STREET BANK WEST CLIENT - TREATY 505234

15,425

1.6

1. The Company holds treasury stock of 22,271 thousand shares, which is excluded from the above list.
2. The percentage of total shares issued has been calculated after excluding the Company’s treasury stock (22,271
thousand shares).
3. Numbers less than one thousand are rounded down to the nearest thousand.

Paper Net Envelope awarded the 44th
Kinoshita Awards in the New Creation
Category

September

Development of a product with hightransparency of SILBIO BARRIER, apaper material with barrier properties

Commenced sale of Nepia
Long Lasting Best Fit Face
Mask (All made in Japan)

Starts providing samples of PaPiPress,
a molded pulp product

Morishigyo Chiba Plant commences commercial operation

Oji Nepia Edogawa Mill commences
commercial operation

AugustDistribution of Shareholders
Shares held Percentage of(Thousands) total sharesissued2021

NovemberCommenced sale of isolation
gowns (All made in Japan)

The Master Trust Bank of Japan, Ltd. (Trust account)

Oji Group Integrated Report 2021

January

DecemberPrincipal Shareholders (as of March 31, 2021)

117

February

Introduced a shareholder benefits system

Stock Information (as of March 31, 2021)

Name of shareholderMarch(as of March 31, 2021)

Other domestic
corporations
8.6%

Individual and others
16.9%

Foreign investors
23.5%

Treasury stocks 2.2%

July

June
Financial institutions /Securities companies
48.8%

May

April
Establishment of Oji PharmaCo., Ltd. with the aim ofdeveloping wood-derived
pharmaceutical products

2020

Oji Group Integrated Report 2021

118

Oji Group Integrated Report 2021

Issued in December 2021

Oji Holdings Corporation

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

The Oji Group
Integrated Report 2021
Fiscal year ended March 2021