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VISIONMESSAGE2

SUSTAINABLE BUSINESS STRATEGY12

THE 5 MATERIALITIESIMPROVE WELLBEING

23

TRANSITION TO A MANAGEMENT SYSTEM THAT CREATES SOCIAL VALUE26RESPOND TO THE CLIMATE CRISIS

29

CONTRIBUTE TOWARD A CIRCULAR ECONOMY36

CONTRIBUTE TOWARD A SOCIETY THAT COEXISTS WITH NATURE

42

SUSTAINABILITYENVIRONMENTAL
・ENVIRONMENTAL MANAGEMENT

51

・ENVIRONMENTALLY-FRIENDLY PRODUCTS AND SERVICES

58

・LEGAL COMPLIANCE AND POLLUTION PREVENTION

63

SOCIAL・RESPECT FOR HUMAN RIGHTS

65

・LABOR AND TALENT

67

・EMPLOYEE HEALTH AND SAFETY

75

GOVERNANCE
・INCULCATING COMPLIANCE

84

・RISK MANAGEMENT85

DATABANKSOCIETY PERFORMANCE DATA89

ENVIRONMENTAL PERFORMANCE DATA101

REPORTS ON BUSINESS SITES IN JAPAN115

REPORTS ON BUSINESS SITES OVERSEAS

122

GUIDELINESMAPPING TO OTHER GUIDELINES129

POLICY, GUIDELINES

138

OTHERSSTAKEHOLDER ENGAGEMENT

140

SUPPLY CHAIN MANAGEMENT

153

ENDORSEMENT

160

AWARDS AND ACCOLADES162

EDITORIAL POLICY

166

-1-

KOKUYO Sustainability

Message from the CEO

Message from the CEO
Steady progress in our medium-term plan:
Transforming our portfolio and accelerating
field expansion

Representative Director of the Board
President and CEO

Hidekuni Kuroda

Shifting from tangibles to intangibles and expanding overseas
In 2021, we unveiled our long-term vision, CCC 2030, and committed to shifting to a new business model, which we call theForest-Like Management Model. In conjunction with this, we updated our philosophy, reaffirmed our strengths, and set arevenue goal for 2030: 500 billion yen in net sales. Along with CCC 2030, we also unveiled our third medium-term plan,
covering a three-year period ending in 2024. Titled Field Expansion 2024, this medium-term plan sets out financial goals forthe end year of 2024, which represent milestones on the way toward our 2030 revenue goal. Specifically, we aim for net
sales of 360 billion yen with an operating income ratio of 7.6%. To achieve this, we require revenue growth of 7% a year. To
that end, we’re working to expand our business fields.
In FY2022, the year under review, we made good progress overall in Field Expansion 2024. True, that we recorded negative
growth in operating income (although net sales growth was positive when the new revenue standard is applied retroactively),reflecting the economic uncertainties created by the prolonged pandemic. However, we recorded growth in two other profit
items: ordinary income and profit attributable to owners of parent. We also made headway toward the longer-term goal,outlined in CCC 2030, of shifting to the Forest-Like Management Model and becoming the corporate group we envisage: onethat cherishes social diversity and embodies our differentiated values, expressed in the slogan “be Unique.” As part of this, welaid the groundwork for transforming our business portfolio.
For FY2023, we have set two top priorities that will be crucial for achieving our goals in Field Expansion 2024. The first is to
shift from business model focused on tangible goods to one focused on intangibles. The second priority is to expand globally.
Mindful of these two priorities, we’ll pursue the following actions in our two segments, the Workstyle and Lifestyle Fields, in
FY2023. For the Workstyle Field’s domestic furniture business, we’ll engage in a new service business and step up efforts inour business process outsourcing business. The shift to hybrid work, driven by the pandemic, has created demand for officerenovations and new offices. I’m confident that we can seize these opportunities. For the Workstyle Field’s overseas furniturebusiness, we’ll focus on expanding in China. This expansion will be facilitated by Kokuyo Hong Kong Limited, which we
acquired in 2022. Until then, our overseas strategy relied on sales offices. Now that we have a local subsidiary with
-2MESSAGEmanufacturing and procurement capabilities, we have strong prospects for expanding in China and also in other markets,
including ASEAN countries and Australia. The Workstyle Field’s third sub-segment is businesssupply distribution, which is led
by our retailer Kaunet, which sells via in e-commerce and mail order. Kaunet will step up digital marketing and target thedemand for online shopping, leveraging the manufacturing expertise of our corporate group.
As for the Lifestyle Field, here we’ll focus on expanding the stationery businesses globally with the goal of becoming theworld’s top stationery brand. The first step is Asia. Our stationery for schoolgirls has already achieved remarkable growth inChina. Building on this success, we’ll start marketing the stationery in other Asia markets with a view to becoming the top
stationery brand in Asia.

Entrepreneurship and investment for CCC 2030
Looking toward 2030, we remain confident in our prospects for achieving CCC 2030 despite the impact of the pandemic. To
achieve the 2030 goal of 500 billion yen in net sales, we must shift to a business portfolio that delivers sustained growth. Partof this involves the medium-term tasks outlined in Field Expansion 2024: shifting from tangibles to intangibles and expanding
overseas. Alongside this, we must start sowing seeds of growth by addressing social concerns. In a world where workstyles
and lifestyles are transforming in profound ways, the success of our vision depends on whether we can develop new businessideas that reflect the new needs. That is what I will be focusing on as leader.
Regarding investment, we’ll invest in M&A opportunities and in startup partnerships. For example, we’ll explore partnerships
and collaborations with startups that offer solutions to social issues. We may also provide our own corporate venture capital.
Another investment priority is to build the talent and organizational excellence necessary to transform our business portfolio.
Our existing businesses have already made headway in organizational reform. However, for new businesses and overseas
development, we’ve barely begun the work of building the necessary talent and organizational excellence. For Field
Expansion 2024, alongside the medium-term tasks of expanding business fields and nurturing business ideas, we’ll also focus
on building this talent and organizational excellence and forging partnerships. These efforts will transform our organizational
culture.

Realigning our businesses and transitioning into a Work and Life Style
Company
We recently realigned our businesses. Let me give you the background to this move. When we set to the task of drafting along-term vision, the world had entered a period of accelerated change. Seismic shifts had occurred in the external businessenvironment, with people embracing new lifestyles and values. Our own employees were certainly moving with the times, interms of their motivation and workstyles. But it seemed that we as a company were struggling to keep pace with the changes,
let alone stay ahead of them. This sense of crisis became the initial inspiration for CCC 2030.
Previously, we relied on a B2B distribution model. Our organization was like a single coniferous tree, rather than the forest we
now aspire to be. It became clear that this single-tree model no longer worked in a world where workstyles and lifestyles were
diversifying. We feared that the model was incapable of delivering our value to customers. We feared it would never deliver
solutions that catered to this new landscape and that were also linked to a pressing social need. The solution, we concluded,
was to shift to a new model that would enable us to address an array of workstyle and lifestyle needs. This model is the Forest-3MESSAGE

Like Management Model. It then became clear that this task required us to take on the challenge of expanding and rebuilding
our business fields, and that by taking on this challenge we could contribute further toward a sustainable, prosperous society.
We also decided to clarify the kind of sustainable, prosperous society we wanted to see. After some thought, we decided that
this should be a self-directed, collaborative society, in which everyone lives and works as free-spirited individuals whilefeeling socially connected to one another. We then reaffirmed that our mission or role is to help bring about such a society. On
this basis, we formulated the following statement to express our corporate purpose: “Presenting a tomorrow you can’t wait
for.” We also defined the kind of organization we wanted to be: a “work and life style company.” In other words, instead ofbeing an organization that just makes and sells physical stationery or furniture, we’ll be an organization that creates new andexciting ideas for work and for learning and daily life. That is how we create social value along with economic value.
With this line of thought, we decided to reorganize our businesses into the Workstyle and Lifestyle Fields and to commit toshifting to the Forest-Like Management Model.
This reorganization has already started bearing fruit. One noticeable change is that our employees have expanded their fieldof vision, leading to different ways of viewing business growth. In the case of the Workstyle Field, we’ve made progress indeveloping business strategies not just in the workstyle changes prompted by the pandemic but in longer-term workstylechanges. We’ve also become more market-oriented. Rather than starting with the product, we start by identifying market
needs and then create products and services to satisfy these needs. In the case of the domestic furniture business, rather thanjust selling office furniture, we’ve expanded into office services, in which we help clients create an effective office space ormanage their operations effectively. In the case of the overseas furniture business, we returned to the drawing board andthought about what value we could offer the next generation given the shift toward hybrid work. We have now started testinga global strategy that aligns with our brand’s DNA. The acquisition of Kokuyo Hong Kong Limited is an outcome of this new
approach, and it also corroborates its effectiveness.
Similar changes have emerged in our stationery businesses. In the past, employees focused on ideas for how to sell the
products. After we re-conceptualized the Lifestyle Field, employees broadened their field of vision to overseas markets. They
now think up strategies for bringing Japanese stationery, and the values associated with it, to a global audience. This new,global thinking culminated in KOKUYODOORS, a stationery store we directly manage. We opened KOKUYODOORS in
January 2023 in Haneda Airport Garden, a new shopping facility with direct access from Haneda Airport Terminal 3 Station.
The store showcases our stationery to international visitors. It is envisaged as a set of “doors” that open into a world of Kokuyo
stationery and Japanese stationery, whetting visitors’ interest in the stationery.
The stationery businesses are undergoing an organizational transformation in 2023. As part of this reorganization, I’ve taken
personal charge of the business. I decided that if we were to develop global markets for Japanese stationery and become theworld’s top stationery brand, I should personally act as sales rep and promote Japanese stationery to a global audience.
Alongside this change, the business has been renamed the Global Stationery Business Division to underscore its global focus.
I’ll certainly be taking a global focus in my role as head of this division. While the domestic stationery market continues toshrink, I feel encouraged by signs that a global audience is responding positively to our added-value products. It’s myresponsibility to seize this opportunity by channeling both domestic and overseas stationery resources into global expansion.

Early signs of our purpose becoming reality
When we adopted our corporate purpose in 2022 (“Presenting a tomorrow you can’t wait for”), we also ran a freshmateriality analysis to identify the issues that matter the most to us and our stakeholders.
-4MESSAGEOne of our achievements in FY2022 was to reorganize our businesses into the Workstyle and Lifestyle Fields, identify strategic
priorities for achieving the goals set out in CCC 2030 and those set out in Field Expansion 2024, and embark onorganizational transformation. This also marked an achievement in the context of corporate sustainability, in that we defined
the business themes and organizational structures through which we can fulfill our purpose. While it’s true that Kokuyo
produces a wide array of products and services, our real forte lies in our ability to identify emerging workstyles and lifestyles
and then develop ideas for new ways of living and working. In other words, what sets us apart is our social value—the role weserve in society.
Take KOKUYODOORS, for example. When international visitors encounter Japanese stationery at the store, they feelastonished, excited, and inspired by new ideas for their study life or general lifestyle. In other words, we’re seeing the
emergence of new ideas and experiences as promised in our purpose statement: It’s presenting a tomorrow you can’t wait for.

Building a workforce of visionary leaders to present a tomorrow you can’t
wait forIf we are to generate new value in line with our purpose, then we must, of course, invest in the necessary human capital andorganizational infrastructure. One of the top duties for me and the rest of senior management is to build a workforce ofvisionary leaders, those who present “a tomorrow you can’t wait for.”
Workplace diversity is increasingly recognized as a vital part of business management, and it’s something that we arepromoting. If our workforce is to embody our brand’s DNA, we must also create a more open organizational culture bybreaking down departmental silos. By doing so, we’ll foster motivation and leadership. Employees will feel more engaged
and will take the initiative in addressing social issues and customer needs. How to lead this change and ensure that it translates
into business growth—that is a key task for the management and central to Kokuyo’s organizational management strategy.
Having handled many different kinds of products down the years, Kokuyo has long enjoyed a healthy, open culture, withauthority being delegated effectively. The management will leverage this culture to encourage employees to personallyidentify with Kokuyo’s purpose and to show initiative and leadership. With a more engaged workforce, we can satisfy
customers’ needs, address social issues, and deliver added value all the more effectively. Our whole organization, from senior
management to frontline staff, will adopt a go-getting attitude and focus on how to satisfy customer needs and address social
issues, not just on sales and profit targets. In that way, we will build a successful Kokuyo of tomorrow.
I can sum up the above by saying that we’ll make Kokuyo an organization that “presents a tomorrow.” Our junior employees
are especially interested in finding ways to address social issues through their work. Critical to Kokuyo’s organizational
management is how we as an organization address social issues, how our employees engage in such efforts, and whether
such efforts ultimately produce businesses, services, or products that “present a tomorrow.”
I and the rest of the senior management must take a mediumto long-term view. Instead of focusing only on the problems
customers are facing now, we should trace back the problems to their root causes—the wider social issues that underlie theproblems. As indicated in our Value Creation Story, we must be mindful of outcomes and social impacts when developing
businesses that present a tomorrow. To that end, we must build a workforce of visionary leaders. Whether we succeed inbuilding such a workforce is a key goal indicator for our human capital strategy.

-5MESSAGE

Keeping social impact in mind when allocating capital
Finally, I want to discuss our capital allocation strategy for improving our growth prospects. Regarding our financial capital,
we’ll invest this actively in projects for CCC 2030, mindful of the need to strike the right balance between short-term andlongterm allocations. As I mentioned earlier, we’ll keep pursuing opportunities for M&As and startup partnerships. We’ll also,of course, prioritize returning profits to employees in wage increases and to our shareholders in dividends. In this way, I andthe rest of the senior management hope to build affinity and loyalty among our stakeholders.
Regarding non-financial capital, our top priority is to build our human capital—a workforce of visionary leaders who put our
purpose into action. To create a diverse and inclusive organization, we’ll embrace workplace diversity further and fortify theorganizational infrastructure underpinning our new business portfolio. An important part of this is workstyle reform
underpinned by digital transformation.
Our workplace is part of wider society. It’s therefore important also that we keep innovating in our own workstyles andorganizational practices so that we can stay at the forefront. To that end, our workplace must be diverse and engaged, with
employees taking the initiative in pioneering new workstyles and lifestyles. With such a workforce, our marketing efforts willreflect our brand’s DNA. As our employees draw upon our accumulated knowhow to pitch ideas for living and working tocustomers, our loyal fan base will grow, and so too will our social capital.
As for intellectual capital, we’ll focus on developing our creativity, particularly our design finesse. This is because artistic
appeal is crucial to pitching compelling ideas for work and life. If we are to transform the way our customers live and work,
we need to develop our ability to reach and inspire customers directly.
I hope I have given you some idea about the tasks we’ll be engaging with in our efforts to transform our business portfolio andachieve sustainable growth. I look forward to further dialogue with our stakeholders as we transition to the Forest-LikeManagement Model. Over the years, you have shown confidence in our stationery and furniture businesses, and I hope that
Kokuyo will earn your continued trust as we present ideas for workstyles and lifestyles of tomorrow. Thanks for taking the time
to read, and I look forward to our continued journey together.

-6MESSAGEKOKUYO Sustainability

Message from the CSO

Message from the CSO

Dynamically investing in projects with bright
growth prospects

Director, Executive Officer
Managing Officer of the Corporate
Planning Division, CSO

Toshio Naito

Acquiring KOKUYO Hong Kong Limited set the way for overseas expansion
With KOKUYO pressing on with CCC 2030 and Field Expansion 2024, let me tell you about our investment-centeredfinancial strategy. First, let’s review how our furniture business fared in FY2022. While new orders were a little low, we wereinundated with orders for office renovation work, making for some hectic days. In response to this situation, we laidorganizational groundwork and made a start in boosting productivity, meaning that we are ready for growth in 2023 andbeyond. We were particularly keen to boost profitability in our domestic businesses, and so we intensified efforts to restore
these businesses to growth.
As for our overseas furniture business, for some time we felt that this business lacked a competitive edge because it had no
production sites. However, in 2022, we acquired HNI Hong Kong Limited (now KOKUYO Hong Kong Limited). Thisacquisition has paved the way for expansion in China and South East Asia. Our customer base has very little overlap with thatof KOKUYO Hong Kong Limited. Whereas we target the upper market, KOKUYO Hong Kong Limited has a strong presence inthe middle market. This situation means that we have great potential for cross-selling each other’s products. This foundation for
global development counts as a key accomplishment in 2022.
In the past, our overseas strategy focused on optimizing distribution channels. However, focusing on sales functions alone
proved insufficient to build competitive edge overseas. By welcoming KOKUYO Hong Kong Limited into our group, we could
suddenly increase our range of products and save a fortune in procurement costs. Another important benefit is that, by using
the KOKUYO brand in its sales, KOKUYO Hong Kong Limited can command higher sales prices, thus creating higher profit
growth. Our M&A investment promises to pay excellent returns. The initial outcomes will be expansion in the Chinese market.
Later on, we’ll see expansion in other markets such as Singapore, Malaysia, and Indonesia.

-7MESSAGE

Gearing up for field expansion
The stationery businesses have made important progress too. The domestic business is now much leaner. Overseas, thebusiness was adversely affected by China’s zero-Covid policy, but the business entered a recovery path in the second half of2022. One major change alongside this is that the teams in Japan and China started cooperating in product development, sothat our competitive power in Japan can be redirected into expanding in China. As part of this, we reorganized stationery
operations into the Global Stationery Business Division to provide an organizational basis for expanding the business in 2023
and beyond.
As for Kaunet’s e-commerce and mail order business, Kaunet’s products remain popular among its existing customers, but
Kaunet has struggled to win new customers. In particular, Kaunet has a limited online presence compared to its competitors,
which is partly due to weak digital marketing. Kaunet will step up efforts to address this issue with advice from outside experts.
In this way, the business will hasten its return to growth.
Thus, all of our businesses are now equipped for fresh growth. In previous years, our strategy focused on building sales growthin our existing businesses, meaning that we could devote little attention to expanding the business fields into new areas. By
contrast, we now view our businesses differently, and employee attitudes have transformed too. Already, we’re seeing new
ideas emerge for expanding the business fields.

New businesses generated from a culture of experimentation
Our lifeblood is our culture of experimentation. We’ve organizationally embedded this culture, and we’re now seeing new
ideas emerge. One example is The Campus Flats Togoshi, which is a new project of The Campus, a lab for experimenting withnew ideas for work and life. The Campus Flats Togoshi is a concept for a new kind of co-living space. The idea is that residents
dwell together and experiment with ideas that they’d been wanting to try for a long time. In July 2023, we’ll open the first such
residence, in Togoshi, Shinagawa. If we determine that the project has strong prospects for profit, we’ll open a second andthen a third residence.
Another example involves a content business. In March 2023, we launched a series for facilitating communication between
parents and children. The series is called Hello! Family. The idea is to support communication in the families of the future in a
way that reflects their diversified workstyles and lifestyles. The brand includes a range of content. One example is an
eponymous app, which allows you to keep an eye on family members. Another example is Hello! Coco an IoT-driven device
that uses GPS. Another is Hello! Tag, which helps users keep track of their child’s belongings. One other example is Hello!
Moni, a monitoring services that can exchange messages with your smartphone. We’ll focus on attracting users with a view to
growing the content business. Using our medium-term growth CapEx budget, we’ll keep generating new businesses with aview to steadily expanding the fields.

Deploying the growth CapEx budget to build a model of growth
For our financial strategy, we remain committed to returning profits to our shareholders in a stable manner, with a payout ratioof 40%, while also strengthening investment in our growth strategy. In 2023, we launched the Growth Strategy Council. This
council will clarify how the growth budget of 30 billion yen will be spent. We’ve already spent about 10 billion yen of this
-8MESSAGE

budget. Some of the money was spent on acquiring KOKUYO Hong Kong Limited and some on acquiring Origin, a company
that manufactures and sells furniture in Japan. The remaining 20 billion yen should be used to gain partnerships in Australia
that will help us expand in that market. We also need to find the right partnerships for our global stationery business. At any
rate, M&As remain the top spending priority in our global strategy. Alongside the 30 billion yen growth CapEx budget, wehave earmarked 20 billion yen for regular/ maintenance CapEx. This is to be spent on updating our facilities and other assets
and on an information system.
Where will our spending priorities lie in the future? Given that the Japanese market has little prospect of growing, we should
be focusing not on boosting production capacity but on shifting to an approach that adds high value to our products. We
produce around 30% of our products in-house. The remaining 70% are produced by subcontracted manufacturers. These
manufacturers can meet the requirements for quality and lead times, so deploying this supply network effectively is key todelivering products with high added value. While product development and design are likely to remain in-house, production
will be entrusted to the right subcontracted manufacturers.
The other thing we must do in order to expand the fields is to strengthen our talent. Right now, the workforce is too small. The
composition is also problematic, with employees aged 50 or older making up as much as 20% of the workforce. We’ll
therefore increase the number of new hires so that we can build the talent that can take our growth strategy into tomorrow.

-9MESSAGEKOKUYO Sustainability

Message from the Managing Officer of CSV Division

Message from the Managing Officer of CSV
Division

By committing to sustainability, we will
deliver the growth promises of the Forest-LikeManagement Model

Executive Officer
Managing Officer of Financial Administration
Division and CSV Management Division

Naotaka Umeda

Embedding materiality into our organizational culture
In our engagement with stakeholders over the past year, we found that they are very interested in corporate sustainability at
KOKUYO. One topic that came up a lot was materiality. Many stakeholders wanted to know how action on the material issues
would improve KOKUYO’s value, build competitive edge, and ensure that our businesses offer a differentiated value
proposition. We need to dedicate more efforts to the material issues that we newly identified in the latest materiality analysis.
One of these is to improve wellbeing among employees and external stakeholders. The other is to expand business fields
through the Forest-Like Management Model.
President Kuroda has instructed us to disseminate the material issues throughout the workplace so that they are embedded in
our organizational culture. This will be an important priority in FY2023, along with stakeholders’ requests for us to moreclearly link the material issues with outcomes such as competitive edge. We must raise KOKUYO’s value if we are to make ourorganization indispensable to world of tomorrow. Finally, we’ll deliver social value balanced with business value and press
ahead with our material issues in a way that contributes to making our Forest-Like Management Model a reality.

Transforming attitudes toward sustainability
KOKUYO has established the Sustainability Committee. The committee is composed of executive officers and chaired by me.
We decided that the Sustainability Committee should meet four times to clarify an approach on sustainability. I will continue toserve as chair in 2023. In management meetings until now, we would set very clear sales and profit goals, but sustainability
goals were fuzzier by comparison. However, 2023 will be a year for changing this mentality. The first step is for executives tocommit themselves to the sustainability goals. The executives will then start thinking about how sustainability relates to thebusinesses that they manage. This in turn will cascade down, leading to a transformation of attitudes across KOKUYO in 2023.
To be honest, while senior executives may be on board with sustainability, at the operational level, staff often struggle tobalance financial and non-financial concerns. Yet integrating non-financial concerns is absolutely critical in corporate- 10 MESSAGE

sustainability. While we do have some teething problems right now, we’ll press ahead in our sustainability agenda, focusing
on how KOKUYO can offer value to the world of tomorrow.
Through the materiality analysis I mentioned at the start, we crafted a differentiated value proposition. With this done, we’re
proceeding with the next step, which is to engage with institutional investors. Through this engagement, we’ve received mixed
reviews about materiality. Some investors appreciate what we’re doing and dig our corporate culture. Others are less sure. In
light of the feedback, we need to engage better and make our message clearer, clarifying how our non-financial initiatives
will help build KOKUYO’s value and ultimately contribute to the goal of 500 billion yen in net sales.

Accelerating efforts to safeguard the planet as a place for work and life
After the first two material issues (after improving wellbeing among employees and stakeholders, and expanding businessfields through the Forest-Like Management Model), we have three material issues grouped under the theme of safeguarding
the planet as a place for work and life: respond to the climate crisis, contribute toward a circular economy, and contributetoward a society that coexists with nature. Of these, responding to the climate crisis is a particularly important task for us. The
Sustainability Committee has identified climate-related tasks and prepared an organizational process for decision-making andexecution. Following this, we endorsed the Task Force on Climate-related Financial Disclosures (TCFD) and have madeprogress in addressing climate-related risks and setting metrics and goals.
Japan once had a serious pollution problem, and no one doubts that the private sector had a moral obligation to clean up thepollution. The TCFD agenda remains in its early days, and our workforce is yet to fully appreciate its importance. However,like the pollution problem, the private sector now has a social responsibility to battle climate change. It will therefore become
increasingly important for us to disclose the social and environmental impacts of our business activities.
Under our current operations, it will be no easy task to balance the goal of cutting carbon emissions with our financial goals,
since the more we produce, the more emissions we produce. We face a host of challenges such as fuel costs and the need to
upgrade our facilities. But we’ll start by changing attitudes in our workforce and then we can accelerate efforts.
For the fifth material issue, contribute toward a society that coexists with nature, we need to endorse and comply with theTaskforce on Nature-related Financial Disclosures (TNFD), as we have done with the TCFD. To that end, we must identify how
our current business activities are impacting the natural environment, prepare the data, and set a plan to generate positivesocial impacts.

- 11 MESSAGE

LONG-TERM VISION CCC 2030

VISION

LONG-TERM VISION CCC 2030
In February 2021, we unveiled CCC 2030, a long-term vision in which we aim to achieve 500 billion yen in
net sales by 2030 by shifting to the Forest-Type Management Model. The main theme of this vision is to becomea diverse “forest” of businesses that grows sustainably. We also unveiled a new purpose statement, “Presenting
a tomorrow you can’t wait for,” which expresses our role in building a self-directed, collaborative society. Thisvision requires radical organizational reform, including a change in corporate culture, organizational
processes, how we allocate talent, and how we unleash the potential of every employee. Committing to suchchange, we held a yearlong process of discussions. During this process, we reaffirmed our values upon which
we will expand our business fields: Co-creation with empathy, a culture of experimentation, and designing
experiences.

KOKUYO’s new business model: The Forest-Type Management Model
Our philosophy

be Unique.

PurposePresenting a tomorrow you can't wait for.

ValuesCo-creation
A culture of
Designingwith empathy experimentation experiences- 12 SUSTAINABLE BUSINESS STRATEGY

- 13 SUSTAINABLE BUSINESS STRATEGYBACKGROUND TO SUSTAINABILITY BUSINESS STRATEGY

Sustainable Management

Background to Sustainable Business Strategy
Background to Sustainable Business Strategy
In 2022, we established the Sustainable Business Strategy. For many years, our CSR Charter had served as basic set ofprinciples guiding our efforts to fulfill our corporate social responsibility (CSR). However, we decided to reformulate thecharter as a sustainable business strategy that would bridge our long-term vision (the overarching concept) with our policy on
stakeholder engagement (a subconcept).

Sustainable Business Strategy
To build a self-directed, collaborative society, we will present a tomorrow you can’t wait for and lead the way
in sustainable business practices.

To balance social value and economic value, we will address social and environmental challenges and offer
inspiration in work, learning, and living.

- 14 SUSTAINABLE BUSINESS STRATEGYORGANIZATIONAL FRAMEWORK FOR SUSTAINABLE BUSINESSSTRATEGY

Sustainable Management

Organizational Framework for Sustainable Business
Strategy
Organizational Framework for Sustainable Business Strategy
Previously, the Environment Committee led efforts to address environmental issues and monitor social trends and issues.
However, in 2022, the committee was consolidated into the new Sustainability Committee as part of a shift to a neworganizational framework for sustainability. Under the present framework, we have publicly committed to accomplishing thegoals for our upgraded set of material issues, and senior management (executives and board members) have taken on theleading role in integrating sustainability through a PDCA cycle. The Sustainability Committee is chaired by the head of CSV,
and it consists of four subcommittees: the Environment Subcommittee (what once was the Environment Committee), Wellbeing
Subcommittee, Procurement Subcommittee, and Forest-Type Management Model Subcommittee.

- 15 SUSTAINABLE BUSINESS STRATEGYDECISION-MAKING PROCESS

Sustainable Management

Decision-making Process
Decision-making Process in Sustainable Business Strategy- 16 SUSTAINABLE BUSINESS STRATEGYDECISION-MAKING PROCESS FOR MATERIAL ISSUES

Sustainable Management

Decision-making Process for Material Issues
In FY2022, we updated our material issues. We had identified a set of material issues back in FY2020 based on a standard
materiality analysis. However, we subsequently decided to conduct a more thorough materiality analysis so that our material
issues would align with the kind of society we envisage: a self-directed, collaborative society. For the FY2022 materiality
analysis, we performed a gap analysis. Specifically, we reassessed the current societal impacts of our two strategic businessdomains defined in our long-term vision (CCC 2030) and third medium-term plan (Field Expansion 2024). We then backcasted from the 2030 society we envisage to determine the gap between current impacts and desired impacts. With thisinformation, we identified issues that we need to proactively address. We divided these issues into economic and social
categories.

Decision-making Process for Material Issues* ESG: Environmental, Social, GovernanceStep 1: Identify ESG issues
First, we identified 34 potential environmental, social, and governance issues by referring to the SDGs and to data from MSCI
Inc. and the Sustainability Accounting Standards Board (SASB).

Perspective

Consumers
Key clients
Stakeholders

Investors (MSCI, SASB)
National and local
governments (growthstrategy)

Was a survey conducted?

Was desk research(secondary research)
conducted?

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ー

○

- 17 SUSTAINABLE BUSINESS STRATEGYOur businesses

Perspective

Was a survey conducted?

Was desk research(secondary research)
conducted?

SDG contribution fromproducts, services, and CSR
items

ー

ー

Development divisions○ー

Senior management

No, but a discussion was
held：Sustainable Development Goals
MSCI：Morgan Stanley Capital International
SASB：Sustainability Accounting Standards Board
CSR：Corporate Social Responsibility* SDGsStep 2: Analyze each issue’s impact on stakeholders
Having identified potential issues, we then rated each issue in terms of how much it matters to stakeholders and how much it
impacts our business. Issues that had a high score on both metrics were defined as material.
Materiality matrix

Step 3: Submit to management for review
The issues rated as material were then reviewed by the management to determine whether the materiality designation was
valid.
- 18 SUSTAINABLE BUSINESS STRATEGYStep 4: Define material issues and goals
Finally, in regard to the material issues, we set goals/targets for 2030.

Material issue2030 goal

Material issue 1
Pitch ideas for new ways of working

Pitch ideas for ways of working in the
new normal, support work-life balance

Employees act on their initiative andsolve problems through teamwork

Material issue 2
Promoting diversity and inclusion

Build a diverse, innovative workplacethat is inclusive of gender, disability, andnationality

Workforce is diverse, individual
differences are respected, andemployees feel empowered

Material issue 3
Respond to the climate crisis

Reduce CO 2 emissions through energy
efficiency and renewable energy. Useforests to offset emissions- 19 SUSTAINABLE BUSINESS STRATEGY

Offset CO 2 emissions: Contribute toabsorption of at least 6,000 tons of CO 2a yearReduce CO 2 emissions: Emissions downby 26% from 2013 level in 2030

Material issue

Material issue 4
Contribute toward a circular economy

Promote human rights and resource
conservation/waste reduction in theentire supply chains

2030 goal
100% of waste (office, construction,
inventory) recycled
Procurement guidelines applied
throughout corporate group
Promotion of the use of legal timber

Material issue 5
Contribute toward a society that coexists
with nature

Protect biodiversity and reduce use ofhazardous chemicals to minimize
environmental impacts

Forests: Forests thinned at 150 hectares a
year
Reedbeds: Reeds trimmed at 1.5 hectares
a yearUpdating the material issues
In FY2022, we reviewed progress toward the 2030 goals in light of the material issues we had defined in FY2020 . We thendecided to update our material issues to gain a better understanding of the issues we must address in order to achieve ourgoal of a self-directed, collaborative society.*

1. Identify issues
The process of updating the material issues began with a review of the existing issues we had defined in FY2020. In that
review, we thought about the strategic issues we will need to address if we are to lead the way toward a self-directed,
collaborative society,* a society in which no idea goes to waste. Through the review, we sought to identify a new set ofmaterial issues.
* A self-directed, collaborative society is a society that respects personal values and cherishes social bonds. In this society, horizontal connections between people,
tools, and environments provide new opportunities to collaborate for a better world.

- 20 SUSTAINABLE BUSINESS STRATEGY2. Divide issues into economic and social categories
In light of the findings of the review conducted in 1 and the strategic themes outlined in the medium-term plan, we
identified specific issues to make up for the inadequate elements in the previous materiality analysis. We divided theseissues into economic and social categories and consolidated them into issues of a more general nature. We then plotted
these issues onto the graph shown below.

3. Consider realigning material issues
Previously, our material issues were aligned with the SDGs. However, in this stage, we realigned them with the society weenvisage. We then built an organizational framework for these realigned issues. We have set KPIs for our new set ofmaterial issues. For now, the KPIs are based on our vision for 2030.
* KPI: Key performance indicator- 21 SUSTAINABLE BUSINESS STRATEGY

4. Final review of material issues by Sustainability Committee
The Sustainability Committee, chaired by the head of the CSV Division, will conduct a review and made the final decisionon the material issues. Under the framework provided in Japan’s Guidance for Collaborative Value Creation, we will
engage with investors and incorporate their feedback. We will iteratively update the material issues to reflect changes inthe social and economic landscape.

- 22 SUSTAINABLE BUSINESS STRATEGY

-MATERIAL ISSUE 1- IMPROVE WELLBEINGKOKUYO Materiality

Improve Wellbeing among Employees andExternal Stakeholders
Basic policy
Wellbeing is the experience of happiness and health. To help improve wellbeing, we will promote work-lifebalance, new workstyles, and a diverse workplace (inclusive of gender, disability, nationality) that produces
innovation. For this, we have two challenge goals: pitch ideas for new ways of working, and promote diversity,
inclusion, and innovation.

2030 challenge goal
Outcome2024 commitment goal
KPI

Innovation is created, leading tobetter wellbeing among diverse
individuals and communities.

We promote personalized,
authentic employee experiencesby marketing life -based work (anapproach that tailors workaround people, rather than
expecting people to tailor
themselves around their jobs).

Challenge goals for flexible work
options(flextime, empowering women)
27 challenge goals(three per year for nine years)

We have removed social
barriers, encouraging more
people to engage actively inwork and learning.

Percentage of new product series
that incorporate inclusive design:
At least 50%

2022 results

Shift to mindset that values
employees’ disposable time
100% take -up rate for paid leaveamong managers and general
staff
Women account for 12% of
leadership roles
Percentage of new product series
that incorporate inclusive design:
At least 20%

2023 planAs part of management reform, we’ll shift to a mindset that places
more value on employees’ time (i.e., encourage employees to takeTake -up of paid leave: 54.3% (among five main group companies inJapan)
Percentage of leadership roles occupied by women: 8.5% (among
five main group companies in Japan)

up paid leave) and promote employee empowerment and growth(i.e., empower women in the workplace).
We will foster a workplace culture that encourages employees,
regardless of gender, to pursue a core career path in KOKUYO andto balance their work with their family commitments.
We will establish a process in which each business incorporates
inclusive design in product development.

- 23 IMPROVE WELLBEINGKOKUYO wellbeing
Workstyle diversity challenges

KOKUYO-Style Hybrid WorkIn 2022, we launched KOKUYO-Style Hybrid Work. This program honors diversity while encouraging employees to engage
in workstyles that improve the productivity and creativity of the team as a whole, so that personal growth can accompany
team outcomes. KOKUYO’s distinctive workstyle model is practiced by supporting each employee’s life-based working, aterm we use to describe a situation in which the one’s workstyle, learning style, and lifestyle are balanced and embody one’s
uniqueness.
With the workplace expanding, we provide employees with a satellite-style multipurpose space, known as n.5 (pronounced“enu-ten-go”). The space may be used as a satellite office, but it can also be used for activities related to employees’ working,learning, and living. Employees use n.5 for a variety of purposes, including for self-led seminars and other self-organized
events.

“n.5” can be used for a variety of
purposes, not just work.

Workstyle reform in distribution centers
The distribution industry faces a number of labor challenges. For example, restrictions on truckers’ overtime will come into
effect in Japan in 2024. To address the challenges, KOKUYO Logitem Co., Ltd., has embraced workstyle reform. In 2022, it
introduced flextime for distribution center staff, resulting in a better uptake of flextime in delivery operations. KOKUYO
Logitem’s initiative has now become a best practice example for flexible workstyles in the distribution industry.

A new mindset that gives employees more disposable time
To give employees more disposable time, we are working to improve productivity and foster a culture that values employees’
time. To that end, an organization-wide taskforce ran three experiments in which employees participated.
Experiment 1: Improving productivity of meetings

To improve the quality of meetings, each team reviewed meeting-related actions, including meeting frequency, narrowing
down who will attend, and checking the agenda in advance.
Experiment 2: Gaining awareness of diverse values

Diversity requires people to gain awareness of the differences in the values people hold. A dialogue-focused workshop
was held with employees of different ages and from different departments. The theme was communication in the workplace.
Experiment 3: Exploring ways to use paid leave- 24 IMPROVE WELLBEING

We ran a workshop to explore how employees can use their valuable rest days. Attendees discussed their past, present,
and future interests and passions.

Health management initiatives
Sustainable Business Strategy is stated as follows: To build a self-directed, collaborative society, we will present a tomorrowyou can’t wait for and lead the way in sustainable business practices. A key part of this strategy is promoting wellbeing bothwithin and outside our organization.

We updated the KOKUYO Health and Productivity Management Declaration to express the following commitments: We will
provide a positive working environment, one that supports employees’ mental and physical health and supports employee
engagement. Through this process, we will learn best practices for supporting healthy workstyles. We will then present thesefindings to society. After updating the declaration, we created the Strategic Roadmap for KOKUYO Health and Productivity
Management and launched systematic initiatives.

Recognition as Employee-Friendly Organization
KOKUYO and Kaunet have been listed among the 500 whitelistedcompanies in an award program run by the Ministry of Economy, Trade andIndustry and Nippon Kenko Kaigi, earning the official designation “2023
Certified Health & Productivity Management Outstanding Organization(White 500).” KOKUYO Marketing has earned a separate accolade under
the same program (“Health and Productivity Management Outstanding
Organization”).

Improve wellbeing in society
Initiating inclusive design: Hows Park
To us, inclusive design means an approach in which, from the planningstage onward, one empathizes and co-creates with individuals who havedisabilities or face social barriers in order to identify and resolve the issues.
Through dialogues, we have forged rapport with lead users, through which
we co-create new value for society. In 2022, we launched an initiative withKOKUYO K Heart Co., Ltd., to develop products with inclusive design. The
products, which include furniture and stationery, are designed in a way that
Hows Park accommodates diverse needs throughsupports diversity and accommodates the needs of people with disabilities.

the shape, height, and visibility of the furnitureand by providing a comfortable amount of
space/distance.

On the first floor of our head office, we have opened Hows Park, a diversity
office that embodies inclusive design principles. From the initial construction
phase, we discussed with lead users how to make the space feel accessible
and comfortable for wheelchair users and people with hearing difficulties,
mental health challenges, or leg impairment. Hows Park will serve as atesting ground for us to pilot our inclusive design initiatives.
- 25 IMPROVE WELLBEING

-MATERIAL ISSUE 2- TRANSITION TO A MANAGEMENT SYSTEM
THAT CREATES SOCIAL VALUEKOKUYO Materiality

Expand Business Fields through the ForestLike Management Model
Basic policy
Over the years, we’ve offered solutions for new ways of working, learning, and living through a process of firsthand experimentation in which we design experiences for customers through products and services. Amid
today’s mounting environmental and social issues, many people are unsure of how to take the next step. We
want to transform management systems to lead the way to a sustainable future with the support of all employees
and businesses. As more partners and customers engage with us, the circle of empathy will expand, sparking
more innovation and solving more social issues.

2030 challenge goals
Outcome2024 commitment goal
KPI

Organization-wide collaboration
contributes positively to theenvironment and society,increasing organizational
empathy and leading the way inaddressing social issues.

Our new and existing businesses
address the problems society
faces.

100% of sales have balancedsocial value and economic value

30 visionary idea (Mirai Yokoku)
experiments

Our employees make the world abetter place in many ways.

100% of employees are
addressing social issues

100% participation insustainability initiatives

2022 result

2023 plan
We aim for nine Mirai Yokoku experiments (bringing the cumulative

7 future Mirai Yokoku experiments
Carry Campus, Future School Festival, KOKUYO Open Lab (testing
new workstyles by combining space with DX), launch wellness
program with Euphoria, Kaunet’s launch of Loopa service, launch ofoVice pilot, Zaitaku Hyakka
37.4% participation in sustainability initiatives
1,228 out of 3,284 people, counting only those who responded tosurvey (65% response rate)

total to 16).
To that end, we will keep allocating resources to experiments andentrepreneurial efforts aimed at contributing to society and theenvironment, expanding empathy, and leading the way inaddressing social issues.
We aim to have 80% of our staff engaging in sustainability efforts.
This primarily involves employees integrating into their everyday
work the initiatives developed by members of subcommittee
taskforces in 2022. To keep employees’ motivation high, we willorganize awareness-raising events for employees and the public.

- 26 TRANSITION TO A MANAGEMENT SYSTEM THAT CREATES SOCIAL VALUE

Mirai Yokoku experiments
Hello! Family.
Hello! Family is a new brand that supports communication in modern
families and is tailored to diversified workstyles and lifestyles. Combining asmartphone app and four IoT devices, Hello! Family provides a fun way forusers to check where their family members are and what they are doing.

Reopening of KOKUYO Open Lab.
In November 2022, we reopened KOKUYO Open Lab in The Campus, thelocation of our Shinagawa, Tokyo, office. KOKUYO Open Lab is a place forexperimenting with social initiatives that use the latest technologies andtechniques to enrich work and life. The lab is running a series of experimentson the theme of the digitally oriented workplace—a workplace whereanyone can connect with colleagues whenever and wherever. It also has abooth for showcasing these initiatives.

The Campus serving as the venue for Kamiyama Marugoto’s future school festival
In 2021, we joined Kamiyama Marugoto technical college in a partnershipto explore new ways of learning. In March 2022, we endorsed thecollege’s plan to organize the “future school festival,” an event for
showcasing a diverse array of education and career options. We provided
The Campus as a venue for the event. During the event, one of our engineers
delivered a lecture. Similarly, other KOKUYO employees organized anddelivered classes, including a practical training event on inclusive design. In
this way, they gave attendees an opportunity to think about how nondisabled people and people with disabilities can work together in reducing
social barriers and making life better.

- 27 TRANSITION TO A MANAGEMENT SYSTEM THAT CREATES SOCIAL VALUE

voiceOrganizational measures to turn social value into
economic value
Thinking a few steps beyond our existing businesses, we try to turnemerging needs into new business opportunities.
To get a picture of the highly uncertain demand landscape of the future,
we use backcasting (working backward from a future scenario) to explore
possible needs that will emerge in the future and combine this with
forecasting to identify the challenges to address now.
When evaluating the needs, we need to keep the cycle short and to pivot
when necessary in order to minimize risks and maximize the success rate.

Yosuke Miura
Head of Innovation Center,
Corporate Planning Division

To that end, we listen to experts from inside and outside our organizationand manage the stage-gate process for new projects in a way thatenhances the social and economic value. For future projects, we’ll further
strengthen our collaboration with external companies to enable more
open innovation.

- 28 TRANSITION TO A MANAGEMENT SYSTEM THAT CREATES SOCIAL VALUE

-MATERIAL ISSUE 3- RESPOND TO THE CLIMATE CRISISKOKUYO Materiality

Respond to the climate crisis

Basic policy
Over 90% of our emissions are from our value chain (scope 3), meaning that we can’t contribute to carbon
neutrality just by reducing emissions from our own businesses.
We rely on numerous production and distribution partners. To contribute to carbon neutrality, we work withthese supply chain partners on initiatives such as switching to more sustainable raw materials and delivery
methods.

2030 challenge goals
Outcome2024 commitment goal
KPI

Our collaboration with partners
contributes toward carbon
neutrality throughout our supply
chains.

With our partners support, wehave achieved our carbon
emissions reductions targets
based on the Science Based
Targets initiative (SBTi).

SBTi-based emissions reduction
target: Target set and achieved(target to be determined)
Carbon sequestration: At least
6,000 t-CO 2 sequestered a year

2022 result

Emissions reductions target: 50%
reduction in our Japanesebusinesses from 2013 level2023 plan

CO 2 emissions: 21.4% less than 2013 level
Domestic consolidated group companies + KOKUYO K Heart Co.,
Ltd., Heartland Co., Ltd.
CO 2 sequestered: 4,698 t-CO 2
As stated on July 2022 certificate of carbon sequestration in Yui-noMori

To achieve the 2024 target of 50% reduction among domestic
businesses, we will focus on reducing CO 2 emissions originatingfrom the generation and consumption of electricity, which accountfor the majority of our scope 1 and 2 emissions. In 2022, KOKUYO
Mie Plant switched to net-CO 2 -free power. By rolling out net-CO 2 free power in other factories and offices in Japan, we will cut such
emissions.

- 29 RESPOND TO THE CLIMATE CRISISExamining ways to achieve the 2024 reduction target
In a first step toward decarbonizing our supply chains, we have started exploring ways to reduce CO2 emissions from ourown facilities and resources. Much of our scope 1 and 2 emissions are attributable to electricity. We have therefore launcheda cross-organizational taskforce to examine ways of reducing electricity-related CO2 emissions. The taskforce includes facility
managers for production sites with high CO2 emissions, administrative staff in charge of managing electricity and facilities,
and the planning staff for business units.
Noting that KOKUYO will need to cut emissions dramatically and quickly in order to achieve the 2024 target, the taskforce
decided on a policy of buying net-CO2-free electricity from power companies.
In 2022, KOKUYO Mie Plant switched to net-CO2-free electricity, and other KOKUYO facilities in Japan are set to do so too.
By transitioning to net-CO2-free electricity in Japan, we will meet our 2024 commitment goal of 50% reduction in CO2 fromthe 2013 level.

KOKUYO Mie Plant switches to net-CO 2 -free electricity
In November 2022, KOKUYO Mie Plant switched to net-CO2-free electricity in a first step toward meeting the 2024 target of
50% reduction in CO2. KOKUYO Mie Plant is a core production site in our furniture business.
Because it now purchases net-CO2-free electricity, KOKUYO Mie Plant boasts a zero as its coefficient for electricity-related
CO2 emissions in its production of office furniture.
KOKUYO Mie Plant has engaged in environmental activities since it first enteredservice in 1993. In FY2022, the plant’s greening efforts were honored in the 2022
National Award for Greenery Factory (the plant earned the Chairperson's Award of
the Japan Greenery Research and Development Center). The plant’s greening efforts
include creating more green space, considering flower and tree species, flowering
KOKUYO Mie Plant(Yabata industrial estate, Nabari)time, and leaf and petal colors. They also include reducing CO2 emissions, recycling,
and contributing to the local community.

Scope 1 emissions (emissions from owned or controlled sources) and scope 2 emissions(emissions from the generation of purchased electricity or heating)CO 2 emissions from 31 KOKUYO Group companies (including overseas companies)

Total emissions for all 31 organizations in the corporate group (which includes Iwami Paper Industry since 2018)*1 amounted
to 38,792 tons,*2 an increase of 2,542 tons from the 2021 level. Around 763 tons of the increase was attributable to achange in emissions factor data among energy providers. The remaining 1,779 tons was attributable to an upswing in the
Indian stationery business, reflecting a recovery in demand for stationery following the reopening of schools.
*1 View ESG data (responding to the climate crisis)*2 As to CO2 emission coefficients for electricity in Japan, we adopt the coefficients based on the Act on Promotion of Global Warming Countermeasures (base emission
coefficients for each electricity company based on actual performance for FY2020 and FY2021). As to CO2 emission coefficients for overseas electricity, we adopt thecountry-specific factors cited in Emissions Factors 2022 published by the International Energy Agency (IEA). The difference due to change in coefficients is thedifference with the emissions calculated based on the average of all electricity sources for 2000 (0.378 kg-CO2/kWh).

- 30 RESPOND TO THE CLIMATE CRISISScope 1 and 2 emissions

Energy consumption per sales
revenue* We adopted the ASBJ Accounting Standard for
Revenue Recognition (No. 29, March 31, 2020) at
the start of 2022. With this standard retroactively
applied, the result for 2021 would be 252.7 GJ /100 million yen.

CO 2 emissions from sources in Japan
In 2022, a total of 24,101 tons of CO 2 was emitted by 11 consolidated subsidiaries in Japan*1 and by our disability-friendly
subsidiaries, KOKUYO K Heart and Heartland. This is 2 tons less than the previous year’s figure (0.0% year-on-year change). The
factors behind this change include a decrease of 21 tons attributable to a change in emission coefficients.*2 If the change inemission coefficients is discounted, the emissions actually increased by 19 tons. According to our estimates, the factors behind
this 19 ton-increase were as follows: Consolidating manufacturing operations increased emissions by 487 tons, more thanoffsetting a decrease of 405 tons from operational improvements and a decrease of 63 tons from improvements in facilities andequipment. Disclosed below are the results by sector (offices, plants, distribution).
*1 The companies are as follows: KOKUYO, KOKUYO Product Shiga, KOKUYO MVP, KOKUYO Logitem, KOKUYO Supply Logistics, KOKUYO Marketing,Kaunet, Actus, KOKUYO Finance, KOKUYO & Partners, LmD International.
*2 As to CO2 emission coefficients for electricity, we adopt the coefficients based on Japan’s Act on Promotion of Global Warming Countermeasures (baseemission coefficients for each electricity company based on actual performance for FY2020 and FY2021).

Efforts among offices in Japan
Offices emitted 23 more tons than they did last year (20 more tons if we
discount the impact of the emission coefficient). Emissions increased by 95 tons
because of brisk office in Tokyo Shinagawa Office following the opening of afloor that was under renovation. However, this increase was partially offset bya reduction of 54 tons caused by remote working, and a reduction of 21 tons
caused by the upgrading air conditioning systems and installing LED lighting.

Solar panels installed on the new wingof the Osaka officeEfforts among plants
Plants emitted 26 more tons than they did last year (4 more tons if we
discount the impact of the emission coefficient). Emissions increased by
302 tons because of higher production and insourcing. However, thisincrease was offset by a reduction of 256 tons caused by quicker
assembly line changes and stricter enforcement of machinery operation
rules, and a reduction of 42 tons caused by more efficient compressorroom ventilation and adoption of more energy-efficient technology (LEDlighting).
* We have discounted Mie Plant’s shift to net-zero energy.

- 31 RESPOND TO THE CLIMATE CRISIS

Solar panels installed on Shiga Plant

Efforts in distribution operations in Japan (storage, shipment)
Distribution operations emitted 51 less tons than they did last year (5 lesstons if we discount the impact of the emission coefficient). Emissions
increased by 90 tons because of a higher transaction volume andconsolidations of distribution centers. However, this increase was morethan offset by a reduction of 95 tons caused by the adoption of moreenergy-efficient practices and adjustments of lighting levels in distribution
centers.

Hybrid streetlights installed at our
integrated distribution center for the
Tokyo Metropolitan Area

Expand our scope 3 emissions coverage
We are working to comply with the increasing societal demand for companies to manage and report their scope 3 emissions,which are emissions from sources that the company indirectly affects in its value chain (such as emissions from manufacturingservices, transport and distribution, or from the use and end-of-life treatment of sold products).
In 2022, we expanded the range of our scope 3 reporting with a view to making our value chain carbon free. To ascertain theimpacts of our business activities across our value chain, we started quantifying the impacts of all activities across our
corporate group, instead just those related to KOKUYO brands as before.
With this wider scope, total GHG emissions in 2022 amounted to 1,245,425 tons, 2.5 times the 2021 result. Scope 3
emissions accounted for 97% of this total, and 80.6% of the scope 3 emissions were in category 1 (purchased goods andservices).
We will continue our efforts to reduce our value chain emissions.
* The reliability of our environmental data was confirmed in an independent assessment conducted by Bureau Veritas Japan.

* Entities assessed for scope 3: 31 companies in
KOKUYO Group (KOKUYO, 20 consolidated
subsidiaries, 10 associated companies)

View scope 3 emissions by category here

Endorsement of TCFD, TCFD-compliant disclosure- 32 RESPOND TO THE CLIMATE CRISISGovernanceIn 2022, we endorsed the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD). We regard
climate change as a major strategic concern and have established an organizational framework for managing climate-relatedrisks. Under the supervision of the Board of Directors, the Sustainability Committee identifies climate-related risks so that the
management can incorporate the information into strategic planning and take the decisions and actions necessary to mitigate
the risks. To supervise this process effectively, the Board of Directors hears reports from the committee twice a year and thendeliberates on climate-related risks and other sustainability issues. The board also decides on matters of strategic importance.
The Sustainability Committee’s membership consists entirely of executives and the committee is chaired by the Managing
Officer of the CSV Division. The committee monitors social and environmental trends to identify strategic concerns related tosustainability. It then formulates actions plans and allocates budgetary resources for addressing these concerns. The
Environment Subcommittee (a subcommittee of the Sustainability Committee) collaborates with the managers responsible foreach business division to identify climate-related risks, incorporate the findings into strategic planning, and spearheadorganization-wide efforts to mitigate the risks.
Strategy

We use scenario analysis to identify the climate-related risks and opportunities and their financial implications so that thenecessary measures can be taken. Since 2030 is the endpoint for our long-term vision, our scenario analysis projects climaterelated shifts in society and among stakeholders between now and that endpoint.
The scenario analysis conducted in FY2021 covered the furniture and business supply distribution businesses, which fall under
the Workstyle segment. In FY2022, it covered the stationery and interior retail businesses, which fall under the Lifestylesegment. We have identified the climate-related risks and opportunities in the stationery and interior retail businesses and will
now analyze the financial impacts of these risks and opportunities.

Scenario

Within 1.5

4℃

Description of scenario

References

Sustainable Development / Net-zero Scenarios: Committing to a net-zerotransition by 2050, the world acts to keep global warming below 1.5
relative to pre -industrial times. Government regulation is tougher compared tothat in the 4
scenario, and people take a greater interest than they do atpresent in climate change and other environmental issues.

℃℃

Stated Policies Scenario: Government regulation is weak compared to the othertwo scenarios. There are no further measures or further policy intentions beyond
what governments have already implemented or stated. GHG emissions may
increase for a time, and people’s interest in climate change and theenvironment remain as it is now.

℃

IEO World Energy Outlook 2021.
Sustainable Development
Scenario/Net Zero Emissions by
2050 Scenario
IPCC SSP1-1.9
IEO World Energy Outlook 2021.
Stated policies Scenario
IPCC SSP5-8.5

Risks and opportunities< Workstyle Field >Scenario

1.5℃

Furniture Businesses
With growing pressure around the world for a net-zero transition, our customers, suppliers, and other social
stakeholders will take more action to contribute to the net-zero transition and to reduce waste. The financial/businessrisks include higher CO 2 emissions costs, the need for more capital spending, higher raw material costs, and a
decline in sales revenue following changes in customers’ needs. The opportunities include the potential for developing
goods and services to cover shifting customer needs and behavior, and the potential to expand business domains by
developing low-emissions businesses. Accordingly, we will seize the opportunity to develop new products andservices so that we can create value suited to the changes among customers and in society.

- 33 RESPOND TO THE CLIMATE CRISISScenario

Furniture Businesses℃

Timber prices rise amid the global spread in consumer activism coupled with climate impacts. Manufacturing andtransportation become increasingly vulnerable to climate -related disaster risks. The financial/business risks include
higher raw materials costs and the risk that hiking sales prices to absorb the cost increases may cause a drop in
demand for furniture products. Where physical risks materialize, the risks include opportunity losses, businesssuspension, and the cost of responding to the incident. We will address the risks by increasing our organization’s
resilience. We also eye opportunities in the changing market trends, including the rise of disaster management efforts
and new workstyles in our customers’ offices. To capture these opportunities, we will develop new solutions thatcreate value.

ScenarioBusiness Supply Distribution

4℃

As the net-zero transition progresses, customers, distributors, and other social stakeholders take more action tocontribute to the net-zero transition and to reduce waste. The financial/ business risks include the costs of carbon
taxes, higher transport costs, and a decline in sales revenue following changes in customers’ needs. The opportunities
include the potential to increase sales revenue with a lineup suited to the shifting customer needs. Accordingly, we
will seize the opportunity to change our product lineup and expand our digital measures so that we can increase ourclimate resilience and create value suited to the changes among customers and in society.

℃

Raw material prices rise amid the global spread in consumer activism coupled with climate impacts. Physical risksmaterialize, disrupting transportation and other parts of the supply chain, which may have severe ramifications for thebusiness model. The financial/business risks include higher costs, both for raw materials and for transportation.
Where physical risks materialize, the risks include opportunity losses, business suspension, and the cost of responding
to the incident. To address the risks, we will strengthen our organization’s resilience by altering our procurement
strategy and expanding digital measures.

1.5

4< Lifestyle Field >Scenario

Global Stationery℃

The global net-zero transition leads to new consumer and market trends, with consumers changing their attitudes
toward stationery and other consumables and with new workstyles and learning styles emerging. The
financial/business risks include higher CO 2 emissions costs, higher raw material costs, the costs of added investment,
and the risk that the stationery market shrinks amid digitalization. The financial/business opportunities include thechance to create new value by developing products and services for Japanese and overseas markets that cater to theemerging trends.

℃

Cost pressures increase amid the global spread in consumer activism and the physical impacts of climate change
become an increasing threat. The financial/business risks include higher costs in raw materials and energy. Where
physical risks materialize, the risks include opportunity losses and the cost of responding to the incident.
Financial/business opportunities include a growing demand for stationery in overseas markets. The opportunities canbe realized by strengthening resilience, globalizing the supply chain, and expanding in overseas markets.

ScenarioInterior retail businesses

1.5

4

℃

The net-zero transition increases pressure to realize ecological sustainability, including reducing the CO 2 emissions
generated in the life cycle of furniture (from production to disposal). The financial/business risks include higher CO 2
emissions costs, higher raw material costs, and the costs of added investment. They also include the risk that people
purchase interior goods less frequently out of concern for the environment and the risk of increased competition fromfurniture rental and subscription services. Financial/business opportunities can be realized by balancing businessinterests with environmental friendliness, such as by carbon footprint labeling and developing services that reduce
furniture waste (e.g. repair services).

℃

Prices for timber goods and other products rise amid the global spread in consumer activism coupled with climate
impacts. The supply chain and retail activities become increasingly vulnerable to climate -related disaster risk. The
financial/business risks include higher raw materials costs and the risk that hiking sales prices to absorb the cost
increases may cause a drop in demand for furniture products. Where physical risks materialize, the risks include
opportunity losses and the cost of responding to the incident. To manage these risks, we will strengthen resilience andensure stable deliveries of our products by altering our procurement strategy and developing our e -commercebusiness.

1.5

4

Risk Management

Climate-related risks are managed by the Environment Subcommittee (a subcommittee of the Sustainability Committee).
Guided by the findings of regular internal and third-party research, this subcommittee identifies and evaluates the risks withattendance of managers responsible for each business division. Once the risks are identified and evaluated, they are- 34 RESPOND TO THE CLIMATE CRISIS

communicated to business divisions concerned. The strategic implications of the risks are incorporated into strategic planningby the Environment Subcommittee, while business-specific implications are addressed by the relevant business divisions.
Under the existing system for groupwide risk management, the Risk Management Committee has steered efforts across thecorporate group to manage groupwide risks. To integrate climate-related risk management into this existing system forgroupwide risk management, the Risk Management Committee will now coordinate with the Sustainability Committee’s
Environment Subcommittee.
Specifically, the Environment Subcommittee will inform the Risk Management Committee about important matters concerning
risk management and about the state of compliance with environmental regulations.
Metrics and Targets

We will step up efforts to reduce CO2 emissions to mitigate climate change and contribute to a net-zero transition. We havedefined the following metric and target for 2024.

Metric2024 target

2022 result

CO 2 emissions

50% reduction from 2013 level in scopes 1 and 2: consolidated subsidiaries inJapan,* KOKUYO K Heart Co., Ltd., and Heartland Co., Ltd.

21.4% down from 2013 level (24,101 tCO 2 )** These subsidiaries consist of the following: KOKUYO, KOKUYO Product Shiga, KOKUYO MVP, KOKUYO Logitem, KOKUYO Supply Logistics, KOKUYO Marketing,Kaunet, Actus, KOKUYO Finance, KOKUYO & Partners, LmD International

Alongside efforts to reduce CO2 emissions, we support forest carbon sequestration by a forest-thinning program. In FY2021,
we thinned 88.55 hectares of forest, contributing to the absorption of 4,698 tons of CO2.

- 35 RESPOND TO THE CLIMATE CRISIS

-MATERIAL ISSUE 4- CONTRIBUTE TOWARD A CIRCULARECONOMYKOKUYO Materiality

Contribute toward a circular economy

Basic policy
We want to use the planet’s limited resources efficiently in delivering value to customers. Accordingly, we’vebeen working to recycle more of our waste and to develop ecologically sustainable products and services. As
an organization that provides products that are as accessible to as many people as possible, we also aim topromote individuated zero-waste lifestyles. We’ll engage partners and customers in our efforts to help build a
circular economy, one that recycles and reuses rather than wasting.

2030 challenge goals
Outcome2024 commitment goal
KPI

Our collaboration with partners
and customers leads the way
toward a zero-waste society by
reducing, reusing, and recycling.

Over 16% of the Japanese
population participates in our
programs for building a circular
economy, creating positive
behavioral changes in society.

We conduct numerous
experiments for a circular
economy, encouraging morecompanies to commit.

At least 80% of net sales
attributable to products sold bygroup (including overseas
companies) that support atransition to a circular economy

100% of new products
incorporate circular-economy
design principles

100% of waste (office,construction services, inventory)
recycled

100% of suppliers endorse ourcircular-economy designprinciples

2022 result

100% of key suppliers (some400 companies) provided
feedback (evaluations, issues toaddress) in supplier evaluation
survey2023 plan
Circular Business Guidelines (ver. 1) will enter force in April

Completed Circular Business Guidelines (ver. 1)

Start trial scheme for collecting used stationery from schools

Offices: 95.9% of waste recycled. Construction services: 82.3% of

Launch five circular-economy initiatives for new offices and officewaste recycled

relocations

511 of 549 key suppliers responded to survey (93% response rate)

Feed back survey results to key suppliers and ask some of the
suppliers to make improvements- 36 CONTRIBUTE TOWARD A CIRCULAR ECONOMYCircular Business Guidelines
Shifting to a circular model in both tangible and intangible aspects
We created the Circular Business Guidelines as an updated version of the eco-batsu initiative, which we havecontinued since 2008. The guidelines are designed to support closed-loop recycling and reduce recycling speed byreinforcing efforts in use, collection, and recycling. They also emphasize communicating with users and the venous
industry (companies that turn industrial waste into reusable resources) to promote a shift to genuinely recyclable
products and to develop the maintenance and collection services that underpin closed-loop recycling.

We would like to acknowledge the support we received from the Daijiro Mizuno Laboratory of the Kyoto Institute ofTechnology and from Re: Public Inc.

Examples of business initiatives
Kaunet: Loopa (E, F, and A in the Circular Business Guidelines)
We launched Loopa, a simple, convenient, and reliable service forrecycling office wastepaper. Loopa now collects and recycles paper packs,
paper cups, confidential documents, and miscellaneous wastepaper. In
2023, we plan to expand the coverage to eight wastepaper categories. To
facilitate the recycling of many more materials, we will incorporate adesign-for-recyclability strategy (using design and manufacturing processes
that enable recycling).

- 37 CONTRIBUTE TOWARD A CIRCULAR ECONOMYFurniture Business: Launched 10-year warranty (D)We started extending our warranty to ten years for the core structures ofoffice furniture so that customers can use the products over a longer periodwith peace of mind, thereby reducing waste. The ten-year warranty has
initially been introduced for some items in our chair series, table series, andstorage series.

Stationery Business: Neo Critz From Fishing Nets Recycling (F, A, and B in the CircularBusiness Guidelines)
Discarded fishing gear makes up the largest percentage by volume (ataround 26%) of the ocean plastics adrift in Japanese waters. We launcheda pencil case made in part from old fishing nets. The product is intended tomake people more aware and interested in problem of ocean plastic
pollution.

In partnership with Alliance for theBlue

Actus (F, A, and B in the Circular Business Guidelines)
Actus is reducing furniture waste in three ways:）
2 ）When users have no alternative but to discard furniture (such as when the family
1 Actus repairs furniture to increase its lifespan.

composition has changed or when they move house), Actus offers to buy back thefurniture and upcycle it.

）

3 Actus recycles 100% of worn-out or broken furniture.

Efforts in logistics operations (C and F in the Circular Business Guidelines)
In our logistics operations, we have many circular-economy initiatives: We
use simplified packaging, collapsible containers, and returnable packaging
materials. We reuse pallets and upcycle some waste plastics into stretch film
and other products. We repurchase second-hand furniture. We also
minimize the carbon footprint of our logistics network with efficiency
improvements such as reducing misshipments, using truck space more
efficiently, and embracing the modal shift.

Sustainable procurement efforts
In 2022, we surveyed 549 suppliers about their sustainability efforts. Of these suppliers, 93% responded to the survey. In
2023, we will feed back the survey results to the suppliers and hold dialogues with some of the suppliers to help them address
the concerns.

- 38 CONTRIBUTE TOWARD A CIRCULAR ECONOMY

Number of suppliers549

No. of respondents

511

Response rate

93%

voice

The taskforce’s second year in review

The idea behind the guidelines and how they will be used
The purpose of the Circular Business Guidelines is to encourage customers to engage with us
in our circular-economy initiatives. To that end, the guidelines set out a vision andobjectives related to customer communications as well as to tangible products. Using theseguidelines, we’ll develop tangible products and intangible services with a focus on what
happens after the product is delivered and what happens after the customer discards it.
We’re still in a trial-and-error stage, but we’re excited about engaging with lots ofstakeholders to build a wasteless society.

Stationery Business Division
Technology Development
CenterMaterial Technology
Development Group

Daiki Kishimoto

Piloting a stationery collect-and-recycle scheme for schools
Self-righteous corporate activism will never bring about a circular economy. You needsomething that will keep customers engaged, something exciting that people want to talkabout. As well as being a manufacturer, KOKUYO has many logistics operations, and this iswhere we can create truly engaging services. This year, we’ve formed more partnerships fornotebook collect-and-recycle services. We’ll use these partnerships to collect usednotebooks, recycle them into new notebooks (in a process known in Japan as “horizontal
recycling”), and then hand them to the participating children. The children will experience
their stationery being given a new lease of life, and this experience will encourage them tojoin with us in building a wasteless society.

KaunetProduct Development
Department, Merchandising
Division
Development Group 1

Yo Otake

Building circular, long-life offices
The Workplace Business Division creates numerous products with long lifespans andmodifiability. These design values underpin a sustainability that’s distinctive to officefurniture. We have many loyal customers who have bought many of our products. That’s
why we want to ensure that customers can continue to use the products for many years withpeace of mind, thereby reducing waste. Accordingly, in 2022, we started extending ourwarranty to ten years for long-selling products. In 2023, we’ll release a series of updatableoffice furniture. The products will be based on the furniture our customers already use, butthey can be updated to suit the customer’s workstyle and design preferences. We’ll keepoffering more options for long-term use while exploring ideas for discarded units that
inevitably turn up in the process.

Workplace Business
Division
Marketing Division
Value Creation Unit

Miki Kawamura- 39 CONTRIBUTE TOWARD A CIRCULAR ECONOMYRelated information
Waste output, recycling volume
The volume of waste materials generated by the group’s 31 business offices*1 in 2022 was 20,124 tons (previous year:
21,933 tons), and the recycling rate was 95.9% (previous year: 97.4%). We generated 4,628 tons of waste materials on
construction sites (previous year: 4,863 tons) with a recycling rate of 82.3% (previous year: 80.7%). The responsibilities of theprime contractor with respect to the disposition of waste materials generated on construction sites have been clarified, and theobligations of the waste-generating company have been tightened. Efforts were made to contain waste materials in partthrough a review of the methods by which parts subject to processing at construction sites are ordered. As waste materials
generated on construction sites are not homogenous, there are many cases in which recycling is difficult due to theintermingling of various types of waste materials in a given batch. Nevertheless, we will continue to properly dispose of wastematerials in conjunction with the implementation of controls on their generation and aim to achieve our target of 100% for therate at which waste materials are recycled.

Office efforts
In 2022, our offices produced 1,185 tons of waste (compared to 795 tons in 2021) and recycled 82.3% of waste (comparedto 97.8% in 2021). The increase in waste and reduction in recycling occurred because disposal of inventory assets prompted a
spike in industrial waste. Although there is a limit to what an office can do, our office staff are doing their bit by separating
waste and going paperless.

Plant efforts
In 2022, our factories produced 10,620 tons of waste (compared to 10,684 tons in 2021) and recycled 96.8% of waste(compared to 96.9% in 2021). Since 2009, our Japanese production sites produce zero emissions over a ten-year period
when disposing of waste. Overall, they recycled 99.1% of waste (compared to 99.2% in 2021), because plasterboard at Mie
plant is now reused (material recycling) instead of being burned for energy (thermal recycling), resulting in a slight increase inresidues. Shibayama Plant recycled 96.2% of its waste. The plant generates glass waste in varying volumes, making it
unfeasible in some cases to recycle the waste. In these cases, the waste gets sent from the intermediate site to a final disposalsite (i.e. landfill). Corrective measures are being taken so that the plant can return to net-zero emissions. In 2022, our overseas
production sites recycled 91.0% of waste (compared to 90.3% in 2021). We encourage each of these sites to reduce andrecycle, while taking into account local recycling standards.

Efforts in distribution channels
In 2022, our distribution channels produced 8,318 tons of waste (compared to 10,454 tons in 2021) and recycled 96.6% ofwaste (compared to 97.9% in 2021). Cardboard and wooden pallets used in packaging are repaired and reused. We willcontinue our active efforts to use resources effectively.

KOKUYO products: Reuse, recycle
KOKUYO Logitem runs a collect and reuse/recycle scheme. After delivering products, the company offers to take away thecustomer’s disused products so that they can be reused and recycled according to their condition. In 2022, KOKUYO Logitem
collected around 2,474 tons of used office furniture (desks, chairs, and so on). Around 176 tons of the collected furniture wassalvaged for reuse. The remainder was dismantled and sorted for recycling.
- 40 CONTRIBUTE TOWARD A CIRCULAR ECONOMYA desk being dismantled and sorted- 41 CONTRIBUTE TOWARD A CIRCULAR ECONOMY

-MATERIAL ISSUE 5- CONTRIBUTE TOWARD A SOCIETY THATCOEXISTS WITH NATURE

KOKUYO Materiality

Contribute toward a society that coexists withnatureBasic policy
Conservation of forests is a major imperative for us since we use plenty of timber (not least in our mainstay
products of notebooks and office furniture). Over the years, we have worked to conserve biodiversity andreduce our use of hazardous materials in order to minimize our impact on the environment. From this year, we’llmonitor and take steps to improve our impact on the environment so that we can balance business activities withnatural capital for a healthier planet.

2030 challenge goals
Outcome
KPI
Carbon footprint of business activities
visualized and carbon neutrality
achieved
We safeguard the planet by balancing
business activities with natural capital.

We now disclose our carbon footprint
and actions to minimize it, encouraging
an eco-friendly attitude in the market.

Forest conservation: Forests thinned at
150 hectares a year
Reedbed conservation: Reeds trimmed at
1.5 hectares a year

2022 result

2023 plan

Identified mandatory metrics for measuring
environmental impacts
Forest conservation: 88.55 hectares of forest
thinnedReedbed conservation: 0.45 hectares of reeds

Use model site to identify environmental impacts
Develop activities to create positive environmental
impacts

trimmed- 42 CONTRIBUTE TOWARD A SOCIETY THAT COEXISTS WITH NATURE

Measuring environmental impacts
We are developing metrics to measure how well we discharge our responsibility as a company whose businesses use forest
resources. The metrics, all describing an aspect of co-existence with nature, include understanding biodiversity, relationshipbetween business and biodiversity, evaluation of raw material risks, and identification of risks to business sites and thesurrounding area. With companies increasingly expected to disclose information in line with the Taskforce on Nature-related
Financial Disclosures (TNFD), we are also monitoring this trend and working to understand what the requirements are.

KOKUYO Group’s nature conservation efforts
Yui-no-Mori ProjectIn 2006, we launched a project to conserve a private forest in the Taisho
district of Shimanto, Kochi Prefecture, which we named Yui-no-Mori(“linkage forest”). In this project, we thin the forest and make effective use of
the resulting timber. Our purpose is to lead the way in reviving manmade
forests and restoring the link between the natural environment and local
livelihoods. In 2007, the project was certified by the Forest StewardshipCouncil® (FSC®). Today, Yui-no-Mori has a surface area of 5,430
hectares, and a cumulative area of 1,989 hectares has been thinned. Kochi

Japan Nature Conservation Award 2022: Grand

Prefecture has awarded us the “CO2 absorption certificate” since 2007. In

prize in the conservation in practice category

FY2021, the forest absorbed 4,698 t-CO2 in that year. The cumulative total(April 2006 to March 2022) stands at 72,089 t-CO2.
In 2022, Yui-no-Mori earned two accolades, bringing its accolade tally tonine: In January, it won the “grand prize in the conservation in practice
category” at the Japan Nature Conservation Award 2022. In May, it won
the “excellence award” (Forestry Agency Director-General Award) at
Forests × Decarbonization Challenge 2022. The project earned accoladesin past years too: In 2020, it earned a “sustainability action” commendationfrom the Ecological Life and Culture Organization and the “18th Corporate
Philanthropy Award” from the Japan Philanthropic Association; in 2019, it

Forests × Decarbonization Challenge 2022:
Forestry Agency Director-General Award

won a commendation at the Low Carbon Challenge Cup 2019 and a“minister’s prize” in the corporate category of the Ministry of theEnvironment’s Good Life Awards; in 2018, it won a “Green Wave Award”
prize at the Biodiversity Action Awards; in 2017, it won the Japan Wood
Design Award.

Kochi Prefecture confers certificate of carbon sequestration
On July 15, 2022, Kochi Prefecture awarded KOKUYO and Kaunet a CO2 absorption certificate in recognition of the fact that
we had offset a total of 4,698 tons of CO2 (KOKUYO offset 4,120 tons and Kaunet offset 578 tons). The award ceremony
was held at the prefectural office. Presenting the award, Nobuyuki Mutou (who heads the prefecture’s department for forestry
and the environment) thanked the two companies for contributing over the years to Kochi’s efforts to preserve its environment,- 43 CONTRIBUTE TOWARD A SOCIETY THAT COEXISTS WITH NATUREmanage its forests, promote local industry, and support its PR. The 4,698-ton offset represented 12% of the group’s total CO2
emissions in 2022 (38,792 tons). As well as preserving forests, this effort proves valuable for mitigating climate change.

FSC certification
Yui-no-Mori has enjoyed FSC certification since 2007. Following a regular audit performed on 14 and 15 September, 2022,
the project was recertified.

Presentation of CO2 absorption certificates

CO2 absorption certificate

An FSC certification audit in progress

Monitoring thinning outcomes
An important part of forest conservation is seeing the outcomes of thinning. We monitor these outcomes over the long term inpartnership with Shimanto Forestry Association, Shimanto High School, officials of Kochi Prefecture and Shimanto. On July 17,
2022, we measured the water quality of Shimanto River. On November 19, we conducted a vegetation survey. We conduct
regular vegetation surveys in two locations.

Using the byproducts of thinning
Since 2000, we have used the byproduct of thinning work to make furniture products in partnership with Shimanto Forestry
Association. In 2007, Kaunet started marketing furniture, among other things, under the Yui-no-Mori brand. As of 2022, thedistributor offers 11 Yui no Mori products. To help spread the word about Yui-no-Mori, Kaunet launched a scheme in 2008
whereby customers can use their loyalty points to fund the thinning work. In 2022, there were around 167 applications for thescheme. Since February 2011, Kaunet has donated 1% of the proceeds from some Yui-no-Mori products to an afforestation
campaign (Midori no bokin; “green appeal”) organized by the National Land Afforestation Promotion Organization.

A vegetation survey

Participants measuring water quality in

Kaunet’s Yui no Mori products

Shimanto River- 44 CONTRIBUTE TOWARD A SOCIETY THAT COEXISTS WITH NATURE

ReEDEN Project
The reeds of Lake Biwa play an essential role. They provide an aquatic habitat, support biodiversity, and absorb CO2. In thepast, the reeds served as material for roofing and sudare screens, but with the decline of such traditional industries, thereedbeds are no longer maintained so well. The lake once had 260 hectares of reedbeds, but only half remains. In 1992,
Shiga Prefecture passed an ordinance to address the problem by conserving, cultivating, and using the reeds. Believing thatsuch action would preserve Lake Biwa’s beautiful environment and fight climate change, KOKUYO Product Shiga (which
operates near the lake’s shore) launched ReEden Project in 2007 to raise awareness about the reeds and promote their use,
and thereby help conserve Lake Biwa’s environment.

Network for Protecting Lake Biwa Through Reed Management
Winter reed cutting is essential for reed cultivation. At Lake Biwa, this task is performed by a network of volunteers called the
Network for protecting Lake Biwa through reed management. Formed in 2009 on the premise that it takes more than one
organization to protect Lake Biwa, the network aims to bring on board a variety of local organizations. To that end, members
visit business premises and share the message about Lake Biwa as a way to persuade the organization to take an interest in
local environment. Consisting initially of several companies that shared the same vision, the network now encompasses 132
companies. For more than ten years, the companies have worked with universities and local government to undertake thewinter reed cutting (which takes place three times a year, from December to March). In recent years, participation in the
cutting had expanded from company employees and family members to include local residents, public servants, museums andschools. With approximately 300 participants, the event had grown into one of the largest reed cutting activities in theprefecture. However, we have refrained from holding events for the Network due to the impact of COVID-19 since last year.
We are continuing conservation activities on our own at a smaller scale.

A winter reed cutting event

How reed conservation can contribute to a low-carbon world: Showing the impact
Previously, the reed conservation work was evaluated using just a single metric: the area of lake in which reeds wereconserved (the only data point released by Shiga Prefecture). It was felt that there was potential for broader scientificevaluation. Meanwhile, across the country, conservation groups were promoting rate of carbon sequestration (capture andremoval of CO2) as an index for measuring the effects of forest thinning and other forest management work. Given that reeds
also absorb CO2, we decided that we could use the same measure for ReEden. In 2017, we started inviting researchers to
conduct a biomass survey during the winter cutting. Across a three-year period, the researchers measured reed height,
density, weight, thickness, and carbon sequestration. Consequently, we established a methodology for showing the extent towhich ReEden offsets CO2 emissions.
- 45 CONTRIBUTE TOWARD A SOCIETY THAT COEXISTS WITH NATUREWe now had a completely new perspective, something other than evaluating the project just in terms of area conserved. This
biologic approach was praised by a group of academics who had formed a committee to conserve reedbeds in theprefecture. Members of government, academia, and industry joined forces to develop a tool that measures CO2 absorption inreeds by multiplying reed cutting area by reed height equivalent. Released at the end of 2019, the formula has been publishedon Shiga Prefecture’s website. With the release of the tool, people can now see how the project is contributing toward a lowcarbon world. The data has demonstrated that the project is mitigating climate change in addition to improving the lake’s
water quality and biodiversity. This knowledge has boosted participants’ motivation and brought more people on board. The
project team plans to expand use of the tool with a view to benefiting the whole of the prefecture.
The team’s vision is to follow up the carbon sequestration work in forests across Japan by developing an unprecedented
carbon sequestration system for lakeside environments.

Measuring reed density

Measuring reed weight

Measuring reed thickness

Measuring reed height- 46 CONTRIBUTE TOWARD A SOCIETY THAT COEXISTS WITH NATURE

Related information
KOKUYO Group’s policy on timber procurement
In 2011, we released a groupwide policy on timber procurement to enshrine our commitment to sustainable use of forest
resources. Since our foundation, timber has served as an important resource in our products, such as paper. Recognizing thevital role forests play in mitigating global warming and supporting biodiversity, we aim to promote harmony with forests byensuring that our timber procurement is legal, transparent, and sustainable.

KOKUYO Group’s policy on timber procurement
In procuring forest resources, we pledge to observe the following principles and continually strive for more
ethical and sustainable procurement.

1. Make procurement more transparent, mindful of the problem of illegal logging and related timbertrade
2. Choose timber suppliers in a more meticulous and scrupulous way to promote the sustainable use offorest resources
3. Recognize the valuable roles that forests play in local communities and ensure that procurement
activities preserve and facilitate these roles

Results of due-diligence review of timber compliance (in accordance with Timber
Legality Certification Due Diligence System Manual —Furniture Edition)
In 2022, our due-diligence review of timber compliance revealed potential legal issues with the timber used in three of ourconference chair brands: Airtreave (veneer), Augus (veneer), and WT-150. For our 2023 general catalog, we therefore
derecognized the chairs as products complying with the Act on Promoting Green Procurement. We will continue performing
rigorous due diligence while finding ways to further enhance the manual’s effectiveness. You can view the manual by following
the link below.

Certified as a procurer of legal and sustainable timber
After the Act on Promoting Green Procurement was strengthened, we werecertified as a “procurer of legal and sustainable timber” by the Japan OfficeInstitutional Furniture Association (JOIFA). In line with the new legal
requirements, we strive to ensure that the timber we use is legal andsustainable by providing a paper trail to show how the timber is procured
and used and by appointing the right people to manage this process.

- 47 CONTRIBUTE TOWARD A SOCIETY THAT COEXISTS WITH NATURE

FSC Certification
In 2003, we received chain-of-custody (COC) certification from the Forest
Stewardship Council® (FSC). The FSC is an international non-governmentalorganization that runs a system of third-party forestry certification. Its
purpose is to preserve forest environments by promoting a responsible formof forest management that benefits local communities and is economicallysustainable. COC certification applies to the processing and distribution of
FSC-certified products. The organizations in our group that have obtained
COC certification are KOKUYO, Kaunet, and KOKUYO Product Shiga. The
FSC has approved our products, including our printer paper and notebooks.
In 2016, we received COC certification under the Programme for theEndorsement of Forest Certification (PEFC). The PEFC is a forest certification
scheme. Its criteria is based on accepted intergovernmental standards. We
aim to get more of our products certified for their sustainable use of forest
resources. (FSC® C004748)

Printer paper (PPC Color Paper)

Reed paper

FUBI

How we have used forest resources
In 2022, we used around 7,012 tons of wood in furniture products, equivalent to 15% of our total raw materials (excluding
packaging materials). Of this wood, 20% consisted of rough-cut lumber that was made into solid wood or engineered wood(including plywood). The remaining 80% consisted of forest residues (byproduct from thinning or clearing) or engineeredwood (including medium-density fiberboard and particle board) made from such. Each year, we report such data to JOIFA,
the body that certifies us as a “procurer of legal and sustainable timber,” in compliance with the Act on Promoting Green
Procurement. As per JOIFA’s reporting guidelines, we try to identify the wood species among the timber we use.

Engineered wood versus rough-cut lumber- 48 CONTRIBUTE TOWARD A SOCIETY THAT COEXISTS WITH NATURE

Materials used in furniture productsTree species among rough-cut lumber(excluding packaging) in 2022

used

Timber use survey
We conduct an annual survey to monitor the following data items for the timber used in our furniture products, including woodspecies, volume used, and country or region of origin. It is often unfeasible to identify the country or region of origin of thetimber used in products, but we do our best to source the products sustainably.

Volume used (m 3 )Tree species

Condition

Ash

Wood strands, veneers

2

USA

Kapur

Plywood

1

Malaysia, Indonesia

Engineered wood

4

Japan

Japanese cedarCountry or region of origin

Beech

Solid wood, plywood

159

Germany, Croatia

Poplar-129

USA, Canada

Lauan

Plywood282

Indonesia, Malaysia, China, Japan

Rubberwood

Engineered wood,
solid wood28

Vietnam, Thailand, Malaysia

Monterey pine

Engineered wood

3

New Zealand

Plywood55

China

Eucalyptus

Total

663

* The data in the above table has been aggregated from the figures provided by each supplier. The data covers only wood from rough-cut lumber.
* The table shows only wood species for which we could identify the country or region.

Accolades and recognition
Accolades
Yui no Mori earns grand prize in the conservation in practice category” at the Japan
Nature Conservation Award 2022
The Japan Nature Conservation Award is an award program run by the
Nature Conservation Society of Japan. Founded in fiscal 2014, the program
honors forestry initiatives that contribute significantly to biological end
ecological research, nature conservation, and environmental education. The
following aspects are considered: Community engagement, sustainability,
expertise, innovativeness, and collaboration. Yui-no-Mori was selected forthe grand prize from among 101 contenders in the conservation practice
category. The judges were impressed by how the project balances forest
conservation with local economic development. The prize is shared with our

Presentation of award

project partner, the Shimantocho Forestry Association.
- 49 CONTRIBUTE TOWARD A SOCIETY THAT COEXISTS WITH NATURE

Yui no Mori earns “excellence award” at Forests × Decarbonization Challenge 2022
(Forestry Agency Director-General Award)
Launched in 2022, the Forests × Decarbonization Challenge 2022 is acontest of forestry initiatives of private-sector and non-governmentalorganizations. The program honors initiatives that are particularly
outstanding in view of the carbon offsets they generate and in view ofvarious other benefits. Yui-no-Mori was commended in the following
respects:

The byproducts of thinning are put to good use as much as
possible.
In partnership with the Shimantocho Forestry Association,

Presentation of award

the byproducts of thinning are developed into furnitureproducts and sold across Japan.

Mie Plant earns Chairperson’s Award of the Japan Greenery Research and Development
Center at the National Award for Greenery FactoryFirst launched in 1982, the National Award for Greenery Factory
encourages greenification in industrial areas by honoring organizations andindividuals that improve environments in and around factories.

What impressed the judges about Mie Plant

1. Green spaces make up 32% of the site, 9% more thanwhen operations began.

Presentation of award

2. Great care is taken when selecting tree species andlocations for the trees. The green spaces are wellmaintained.
3. There is active engagement with the local community.
4. Efforts are made to contribute to society.

- 50 CONTRIBUTE TOWARD A SOCIETY THAT COEXISTS WITH NATUREENVIRONMENTAL MANAGEMENT

Environment

Environmental Management
Basic Concepts
KOKUYO recognizes that environmental problems, including global warming and the reduction of forest
resources, are pressing issues. We will bring together the best business brains to develop sustainable solutions.

KOKUYO Group Environmental Policy
Building a sustainable society will require the creation of a decarbonized and recycling-oriented society that can coexist withnature. The KOKUYO Group Environmental Policy defines the following seven items as the specific activity items to achieve
that: response to the climate crisis; contribution to a recycling-oriented society; contribution to a society that coexists withnature; procurement, development and supply of environmentally friendly products; legal compliance and pollution
prevention; information disclosure and communication; and environmental management. Each operating company sets targets
in line with the characteristics of their business based on this KOKUYO Group Environmental Policy. They then strive to improvetheir environmental performance.

KOKUYO Group
Environmental Policy

We recognize that global warming, depletion of resources, biodiversity
conservation and other global environmental problems are perpetual issues
shared by the whole world to achieve a sustainable society. Accordingly, the
KOKUYO Group will assume the lead in taking action to resolve these issues bybring together the wisdom of various people involved in our business activities.

Response to the Climate Crisis

We will take measures to significantly cut and absorb the amount ofgreenhouse gasses we emit to realize a decarbonized society.

Contribution to a Recycling-oriented
Society

We will strive to thoroughly save resources and reduce wastematerials as far as possible and then effectively utilize them as
resources to develop a recycling-oriented society.

Contribution to a Society That
Coexists with Nature

We will promote the conservation of biodiversity and the reduction in
harmful chemical substances through our business activities tominimize our environmental impact on ecosystems.

- 51 ENVIRONMENTAL MANAGEMENTKOKUYO Group
Environmental Policy

We recognize that global warming, depletion of resources, biodiversity
conservation and other global environmental problems are perpetual issues
shared by the whole world to achieve a sustainable society. Accordingly, the
KOKUYO Group will assume the lead in taking action to resolve these issues bybring together the wisdom of various people involved in our business activities.

Procurement, Development andSupply of Environmentally Friendly
Products

We will reduce our environmental burden over the entire product life
cycle and will work on the development of new environmental
technologies and green procurement.

Legal Compliance and Pollution
Prevention

In addition to environmental laws and regulations, we will seek toobserve the industry guidelines we have accepted and our own
standards, as well as to prevent environmental pollution.

Information Disclosure andCommunication

We will actively disclose environmental information, work on
communication with our customers and all external entities, and will
fully engage in environmental preservation activities.

Environmental Management

We will strive to continuously improve our environmental performanceand to solve social issues through our business activities to realize asustainable society.

We have set challenge goals for 2030 and commitment goals for 2024.
Our materiality assessment has identified three critical challenges: respond to the climate crisis, contribute toward a recyclingoriented economy and contribute toward a society that coexists with nature. We started considering the state we want toachieve in 2030 and then established indicators (KPI) for that when promoting activities. We have set ambitious targets for2030 as challenge goals and targets we are aiming to realize in the Medium-Term Plan as commitment goals to serve as amilestone for that.

Material Issue

Material issue 3
Response to the
Climate Crisis

Safeguard theplanet as aplace for workand life

Outcome2030 Challenge Goals

2024 Commitment Goals

Our collaboration withpartners contributes
toward carbon
neutrality throughout
our supply chains.

We are working with partners
to achieve carbon emissions
reductions targets based on the
Science Based Targets initiative(SBTI).

Reduce CO 2 emissions: Reduce
CO 2 emissions in Japan by
50% compared to 2013

Over 16% of the Japanese
population participates in our
circular-economy initiatives,
creating positive behavioral
changes in society.

100% of new products basedon the recycling-oriented
design guidelines

We conduct numerous
experiments for a circular
economy, encouraging morecompanies to commit.

100% of our key suppliers(some 400 companies)
respond to our feedback
survey.

Material issue 4
Contribution toa Recyclingoriented
Society

Our collaboration withpartners and customers
leads the way toward azero-waste society by
reducing, reusing, andrecycling.

Material issue 5
Contribution toa Society That
Coexists with
NatureWe safeguard theplanet by balancing
business activities withnatural capital.

We now disclose our carbon
footprint and actions tominimize it, encouraging an
eco-friendly attitude in themarket.

- 52 ENVIRONMENTAL MANAGEMENT-

* This target applies to the following companies: KOKUYO, KOKUYO Product Shiga, KOKUYO MVP, KOKUYO Logitem, KOKUYO Supply Logistics, KOKUYO Marketing,Kaunet, Actus, KOKUYO Finance, KOKUYO & Partners, LmD International, KOKUYO K Heart, and Heartland* SBT：Science Based Targets

Environmental Management System (EMS)
Our Environmental Management System (EMS) consists of an integrated accreditation system for planning, R&D, production,marketing, sales, services, storage, and shipment. Since 2004, the system covers KOKUYO and all major subsidiaries inJapan. While keeping the core elements of the EMS consistent across the group, we differentiate according to the scale of theenvironmental impact. Specifically, operating companies and plants with a relatively large environmental impact get casespecific treatment, while those with less impact get standard treatment. We also try to give the companies sufficient leeway tomanage their environmental impacts in a manner that suits the nature of their businesses. For example, we allow the companies
to set environmental targets in line with their business strategies.
Previously, our environmental initiatives were led by the Environment Committee. This committee coordinated efforts to addressenvironmental issues and monitored socioenvironmental trends. However, we later decided that a more group-wide approach
was necessary to deal with the increasingly diverse and complex environmental issues in Japan and around the world. In
2022, we reorganized the committee into a subcommittee (Environmental Subcommittee) of the new Sustainability Committee
and increased its membership to include Actus (our interior retail business) and Heartland (a special subsidiary—a company
focused on employing people with disabilities). The Environmental Subcommittee has three taskforces for leading crossorganizational efforts to accomplish the goals for the three material issues: the Climate Crisis Taskforce, the Recycling-oriented
Society Taskforce, and the Taskforce for Coexistence with Nature.

- 53 ENVIRONMENTAL MANAGEMENT

Environmental Education
We provide training opportunities to raise employees’ awareness about environmental conservation, learn the knowledge
necessary for accomplishing our environmental goals, and gain the expertise to deal with emergencies. These opportunities
include briefing sessions about environmental law, which are provided by the ISO Promotion Office, workshops for training
the auditing team, and an assortment of training provided by each corporate division. In fiscal 2022, we focused on
educating employees about Japan’s Air Pollution Control Act, which has toughened the obligations for preventing asbestos
dispersal. Consequently, we saw higher attendance numbers for the sessions on environmental goals and regulation.

Education and training
category

Number of attendees
2020

2021

2022

General environmental education

2,708

2,561

2,611

Briefings on environmental targets
and legislation

162

372

1,711

Accident/emergency response
drills

211

325

234

Training for internal audit team

96

30

17

Other training

7

744

68

3,184

4,032

4,641

Total

Internal (first- and second-party) auditing and third-party auditing
Internal audits (first- and second-party audits) are performed to ensure conformity across our corporate group, with a focus onlegal compliance. In first-party audits, the auditee (a group company) performs the audit on itself. In second-party audits, ourISO Promotion Office performs the audit on the auditee. In 2022, first-party audits were performed from July 1 to September
8, second-party audits were performed from August 1 to September 12, and third-party (ISO 14001) audits were performed
from December 5 to 9. The first- and second-party audits identified 26 instances requiring corrective action. The most commonof the issue (there were seven such instances) concerned operations management.
The third-party audit found no issues as such. However, compared to previous reports, the section on “opportunities for
improvement” raised the bar for us, the auditor’s emphasis having shifted from evaluating compliance to evaluating theeffectiveness of practices. Given the heightened expectations, we must toughen the operational side and take actions toenhance internal auditing. Such actions will include interdepartmental auditing and making the first- and second-party
auditing as transparent as possible.
The third-party audit highlighted as a “good aspect” our projects for promoting biodiversity. One example is the awardwinning Yui-no-Mori Project. Another is Mie plant’s success in greenifying its vicinity, which earned the plant an award. The
third-party audit in 2022 was a surveillance audit.

- 54 ENVIRONMENTAL MANAGEMENT

Internal auditsYear

Third-party audits
2020

2021

2022
Year

Sites audited

74

77

72

・First-party audit

59

61

56

・Second-party audit

15

16

16

・Extraordinary audit

－

－

－

Issues identified

・Minornonconformity

・Corrective action

48

13

35

38

14

24

26

6

20

2020
surveillance
audit

2021
surveillance
audit

2022
surveillance
audit

Sites
audited

20

21

14

Excellent
aspect

1

0

0

Good
aspect

2

16

10

Minor
nonconformity

0

0

0

Opportunityfor
improvement

26

32

28

ISO14001 audit

ISO14001 audit

ISO14001 audit(KOKUYO Osaka Office WS)(KOKUYO Tokyo Shinagawa Office)(KOKUYO Mie Plant)

ISO14001 audit

ISO14001 audit

ISO14001 audit(KOKUYO Logitem Tokyo DC)(KOKUYO Logitem Sapporo DC)(KOKUYO Product Shiga)- 55 ENVIRONMENTAL MANAGEMENTOverview of Third-party Reviews of Environmental Performance Data
Our environmental reporting was independently reviewed and certified by
Bureau Veritas Japan for the purpose of receiving independent feedback on
the accuracy, transparency, consistency, validity, and completeness of thereporting. In its third-party review, Bureau Veritas Japan reviewed
environmental performance data and scope 3 emissions data pertaining to
the 31 organizations that make up KOKUYO Group.*1 It also visited
workplaces to see how data was being measured and managed. ThreeJapanese workplaces were visited: KOKUYO’s Hokuriku sales office,
KOKUYO MVP’s Tottori plant, and KOKUYO Supply Logistics’ Ibaraki
distribution center. One overseas workplace was visited: KOKUYO Camlin’s
Patalganga plant). The review identified 11 excellent aspects and 12
opportunities for improvement. It also identified 38 issues requiringcorrective action and seven opaque aspects requiring better transparency.
During the review period, we rectified the issues and clarified the opaque
aspects. The review commended our approach to measuring and collecting
data, while highlighting certain areas for improvement, such as the need tocorrect weighing scales and clarify review approaches. In light of the issues
raised, we will work harder to improve the accuracy and precision of
disclosures both internally and throughout our supply chains.

Year

2020

2021

2022

Excellent aspects

8

8

11

Opportunity for improvement

11

10

12

Issue requiring corrective action

42

43

38

Aspect requiring bettertransparency

13

0

7

Third-party audit of environmental
performance data at KOKUYO Supply
Logistics’ Ibaraki distribution center*1 The review covered data reporting from the following organizations- 56 ENVIRONMENTAL MANAGEMENT

Consolidated subsidiaries
KOKUYO Co., Ltd.

Japan

Overseas

Kaunet Co., Ltd., KOKUYO Marketing Co., Ltd., KOKUYOSupply Logistics Co., Ltd., KOKUYO Logitem Co., Ltd.,KOKUYO Product Shiga Co., Ltd., KOKUYO MVP Co., Ltd.,LmD International Co., Ltd., Actus Co., Ltd., KOKUYO FinanceCo., Ltd, KOKUYO & Partners Co., Ltd.
KOKUYO Vietnam Co., Ltd., KOKUYO Malaysia Sdn. Bhd.,
KOKUYO (Shanghai) Management Co., Ltd., KOKUYO
Commerce (Shanghai) Co., Ltd., KOKUYO Furniture (China)
Co., Ltd., KOKUYO Design Consultants (Shanghai) Co., Ltd.,KOKUYO International Asia Co., Ltd., KOKUYO International(Malaysia) Sdn. Bhd., KOKUYO Vietnam Trading Co., Ltd.,KOKUYO CAMLIN Ltd.

Affiliates

KOKUYO K Heart Co., Ltd., Heartland Co., Ltd., IWAMI
Paper Industry Co., Ltd., KOKUYO Hokkaido Sales Co., Ltd.,KOKUYO Tohoku Sales Co., Ltd., KOKUYO Kitakanto Sales
Co., Ltd., KOKUYO Tokai Sales Co., Ltd., KOKUYO HokurikuNiigata Sales Co., Ltd., KOKUYO Sanyo-Shikoku Sales Co.,Ltd.

KOKUYO-IK (Thailand) Co., Ltd.

- 57 ENVIRONMENTAL MANAGEMENTENVIRONMENTALLY-FRIENDLY PRODUCTS AND SERVICES

Green Procurement, Green Development, Green Supply

Environmentally-Friendly Products and Services
Basic Concepts
The KOKUYO Group is working on new environmental technologies and green procurement in order to reduce
the environmental load over the entire life cycle of its products.

Systems
Eco-Batsu initiative, Circular Business Guidelines
The KOKUYO Group started using the Eco-Batsu (“no good”) mark for products in the 2008 General Catalog. This mark isused for group products that are not sufficiently environmentally friendly at any stage of their life cycle, including
manufacturing, distribution, usage, and disposal. We tasked ourselves with removing the Eco-Batsu mark from all of our
products in three years, and this goal was reached in the 2011 General Catalog. We continue to apply the due-diligencesystem to products in the 2023 General Catalog.
In 2022, we updated the initiative, creating the Circular Business Guidelines. The guidelines are designed to support closedloop recycling and reduce recycling speed by reinforcing efforts in use, collection, and recycling. They also emphasize
communicating with users and the venous industry (companies that turn industrial waste into reusable resources) to promote a
shift to genuinely recyclable products and to develop the maintenance and collection services that underpin closed-loop
recycling.

- 58 ENVIRONMENTALLY-FRIENDLY PRODUCTS AND SERVICES

Action against plastic pollution
The proportion of plastics among raw materials is not large in the KOKUYO Group. Nevertheless, we are strengthening ourefforts to meet the growing international interest in plastic pollution in recent years and the expectations of our consumers andcustomers.

Plastic recycling initiatives
KOKUYO Group generated 3,547 tons of plastic waste between April 2022 and March 2023. Our group’s logistics
operations accounted for the largest share, followed by construction and manufacturing operations. We are working to
generate less plastic waste, recycle more of the waste, and improve the quality of recycling (by switching from thermal
recycling to chemical or material recycling).

【Plastic waste tonnage by group company】＊1 ton is equal to 1,000 kilograms* Japan’s Act on Promotion of Resource Circulation for Plastics defines as a high-waste-producing
business any business that produced more than 250 tons of plastic waste in the previous year.

【Plastic waste tonnage by business
operation 】＊1 ton is equal to 1,000 kilograms, %indicates percentage of plastic waste that wasrecycled【Inter-year comparison in plastic
waste tonnage in Japan 】＊1 ton is equal to 1,000 kilograms

The All-Paper seriesThis is a series of filing products made fully from paper. When it was launched in March 2004, the series received praise forbeing able to be disposed without having to incur effort to separate into paper, plastic, metal and other materials. With therecent global rise in the problem of ocean plastics, the series is again gaining recognition from the perspective of moving- 59 ENVIRONMENTALLY-FRIENDLY PRODUCTS AND SERVICES

away from plastic. In 2020, we added some more products to the series. One of the new products is a folder with a window
which lets you see the contents. Another is a large-capacity flat file.
The All-Paper series is involved in the Plastics Smart Campaign established by Japan’s Ministry of the Environment toward
solving the global problem of ocean plastics that supports the advancement of initiatives through the partnership andcooperation of a wide range of entities such as individuals, local governments, NGOs, companies, and research agencies.
For example, we are a member of the Japan Clean Ocean Material Alliance (CLOMA), and such membership helps us stayabreast of the latest technological advances in addressing the problem of ocean plastics.

Kaunet’s Initiatives
One of Kaunet’s eco-initiatives is to offer simplified packaging for its deliveries. Moreover, it has switched to environmentallyfriendly biomass plastic for all the plastic used in its simplified packaging.
* When ordering online, customers are presented with three packaging options: simplified, cardboard, and no-preference. The company has also switched to biomass
plastic bags for the plastic bags it uses to deliver its with Kaunet catalogs.

Resource Recycling Initiatives
The Act on Promotion of Resource Circulation for Plastics has served as an impetus for action on plastic recycling: Manycompanies have started encouraging serving drinks to visitors in paper cartons rather than in plastic bottles. Noting this shift topaper cartons, and noting that the cartons are rarely collected for recycling, Kaunet launched a collect-and-recycle scheme
called Loopa in partnership with a beverage company and recycler. In Loopa, Kaunet collects used paper cartons and cups
and upcycles them into paper products.
KOKUYO MVP has entered into a contract with a manufacturer that manufactures pallets for distribution made with composite
materials. The company is working to recycle the waste plastic generated from its factories into resources through this initiative.
KOKUYO Logitem is promoting closed recycling. The company is using a recycling operator to convert the stretch film andcable ties generated from its distribution centers into plastic bags. It then reuses those bags internally.

Large-capacity flat file (all paper)

Paper folder with window (allThe logo for Loopa, Kaunet’s

paper)

collect-and-recycle scheme

Showing the carbon footprint of our products
In 2010, we started monitoring and publicly disclosing the carbon footprint of products from the time they are produced to thetime they are disposed of or recycled. Please refer to the page below for details.
- 60 ENVIRONMENTALLY-FRIENDLY PRODUCTS AND SERVICESUsing Japanese-made, Locally Produced Materials
As much as 67% of Japan’s landmass is covered by forests. Forests help prevent sediment runoff, contribute to water retention,
and absorb CO2. They also provide a renewable resource. However, in much of the country’s man-made forests, which
account for 40% of all the forests, these roles are not fully performed due to insufficient forest thinning. In 1998, we started
developing furniture products made from timber harvested from forest thinning operations. We released the products to themarket in 2000. By making our office products from Japanese timber that was harvested during thinning operations, we create
new demand for wood while also contributing to sustainable forestry.

Yuimori
Back in October 2006, we launched the Yui-no-Mori Project in partnership with the Taisho-cho Forestry Association (now the
Shimanto-cho Forestry Association) in Kochi Prefecture. More recently, we launched Yuimori, a brand of wooden furniture
made from timber harvested in Yui-no-Mori Project. By using Japanese timber, the brand contributes to harmony with nature.
Yuimori products feature elegant and impactful designs along with the high quality required for office furniture. They are also
designed for sustainable disposal. The products were designed by Keiji Ashizawa, who boasts an extensive design portfolio
from architecture to furniture. Furniture experts Tendo Mokko (headquartered in Tendo, Yamagata; represented by Yukio Kato)fabricated the designs, bringing out the timber feel. We contributed our own know-how in office furniture, such as ideas formaking a chair comfortable. Through Yuimori, we contribute to greater harmony with nature.

View the Yuimori webpage：https://kokuyo.jp/yuimori

Protocol Counter
In response to the demand for locally sourced materials, we developed a reception desk that uses such materials. Designed by
Graf: Decorative Mode Number 3, the product has a crisp, modern feel. It also embodies universal design principles: thetable edge has a groove for securing a walking stick or similar items and a grip for wheelchair users.

- 61 ENVIRONMENTALLY-FRIENDLY PRODUCTS AND SERVICES

Protocol Counter, winner of the

UU ChairJapan Wood Design Award 2017

EF Counter, featuring modesty panels made from locally sourced timber
EF Counter is a series of modular counters that can be rearranged to suit changes in the organization or changes in desireduse. With their universal design, the counters are friendly to the elderly and to wheelchair users. While part of the structure ismade from standardized materials, the modesty panel is made from timber sourced from the locality in question. This
arrangement ensures that the counters are no less functional and versatile than standard counters are. As with Protocol
Counter, the table edge has a groove for securing a walking stick or similar items and a grip for wheelchair users.
Protocol Counter serving in the new municipal building of Yamato-Koriyama, Nara

Ground floor, waiting area

Ground floor, main reception

Fourth floor, secretariat’s

desk

reception desk

In March 2022, we delivered a protocol counter made of Yoshino hinoki cypress for use in Yamato-Koriyama’s new municipal
building, which was due to be completed in June 2023. With the new building intended to serve as a new symbol of themunicipality, the building would have a welcoming atmosphere, with an interior design that was straightforward, accessible,
and employee-friendly. To that end, the interior would feature plenty of local timber, emphasizing harmony between natureand residents. Accordingly, we pitched a reception counter made from Nara timber, emphasizing that this aligned with theinterior design. Our pitch proved successful. We will continue pitching furniture that is made from local timber and that isfunctional, user-friendly, green, in order to encourage the use of (or a shift to) timber in public buildings.

- 62 ENVIRONMENTALLY-FRIENDLY PRODUCTS AND SERVICESLEGAL COMPLIANCE AND POLLUTION PREVENTION

Legal Compliance and Pollution Prevention

Addressing water risks and managing chemical
substances in products
Basic Concepts
We are striving to prevent environmental pollution by complying with statutes and regulations relating to theenvironment as well as industry guidelines to which we have subscribed and our own standards.

Summary for 2022
Twenty-nine environmental laws and regulations are currently applicable to the KOKUYO Group within Japan. In June every
year, we evaluate the status of our compliance with these laws and regulations. Following the 2022 evaluation, we excluded
some timber furniture products from coverage under the Act on Promoting Green Procurement because of the questionable
legality of their use. We also reported to authorities a CFC leakage that occurred at a stationery plant when disposing of acompressor. We’ll strengthen legal compliance to ensure that such an incident never reoccurs. No other products were foundto be in violation of the requirements.

Response to Water Risks
Water is an indispensable resource to all people, companies and organizations active on the planet. On the other hand,water-related risks are rising as the world’s population increases. The KOKUYO Group considers water to be a valuable
resource. Accordingly, we strive to use it efficiently. At the same time, we properly grasp and respond to water-related risks.
Awareness of Water Stress
The KOKUYO Group has defined 44 countries as water stress areas. These are areas where the water stress has been
rated as “extremely high” or “high” according to the Aqueduct water risk-related evaluation tool provided by the World
Resources Institute (WRI). We have a production base in India in a water stress area that produces stationery and painting
supplies. We are appropriately managing and gathering information on the amount of water used in that area. Water
risks, such as the impact on business from a shortage in water, have not yet materialized in relation to our business at thepresent time. Nevertheless, we will continue to grasp local information in that area to analyze water risks. Together with- 63 LEGAL COMPLIANCE AND POLLUTION PREVENTION

that, we will appropriately manage business so that our business activities do not have an adverse effect on theenvironment.
Compliance with Water-related Laws, Regulations and Standards
The KOKUYO Group complies with the laws, regulations and standards in our business areas. There were no items
identified as being legal violations or unjust in relation to water in FY2022.
Water Usage in the KOKUYO Group and Water Usage in Water Stress Areas (2022)

Cubic kilometers (km3)

KOKUYO Camlin
KOKUYO
Group

Input

Total

Tarapur

Patalganga

Samba

ExcellaPencils

Volume of water intake

271

85

24

39

10

12

Volume of wastewater

177

46

24

0

10

12

Publicwater
drainage

40

-

-

-

-

-

Drainageto thesewer
system

137

46

24

-

10

12

OutputPromoting the Management of Chemical Substances Included in Products
We recognize that every supplier has a moral responsibility not only to avoid the use of prohibited substances but also tohandle hazardous substances (substances that could harm the environment or health) safely and to communicate the hazard
information. We also recognize that there has been a clear global shift in the regulation of chemical substances. Specifically,
countries around the world are moving from the traditional hazard-based approach, which focuses on the inherent propertiesof a chemical substance that make it potentially hazardous, to a more scientific risk-based approach, which focuses instead on
the circumstances in which these potential hazards may cause harm. We, too, have shifted toward risk-based assessments
over the past several years. In 2014, we listed up the hazards in the chemical substances we use. Referring to this list, westarted examining the risks of the substances in 2015 on a priority basis. In 2017, we released our findings on the hazards andexposure risks in a report titled Guidelines for Managing Chemical Substances Included in Product (Stationery Edition). In
2022, we researched regulatory developments in Japan and elsewhere and started updating the stationery edition of the
Guidelines for Managing Chemical Substances Included in Products. We will continue to fulfill our responsibility to comply
with chemical substance regulations and communicate chemical information.

Enforcing appropriate management andPublicizing the harms and dangers of

Scanning for heavy metals using X-ray

handling of chemical substanceschemical substances on noticeboard

fluorescence(KOKUYO Head Office)panels (KOKUYO Shibayama Plant)- 64 LEGAL COMPLIANCE AND POLLUTION PREVENTION

SocialRespect for Human Rights
We have a code, policy, and guidelines to ensure that our stakeholders’ human rights arealways respected in the course of our business activities.

KOKUYO Group Code of Conduct
After we started expanding globally, it became apparent that we needed to define a setof common behavioral standards while giving leeway to local differences, such as culturaldifferences, differences in values, and differences in legal interpretations. We therefore
established the KOKUYO Group Code of Conduct in August 2012 along withaccompanying handbooks containing locally relevant guidance, taking into account thecustoms and the legal and regulatory landscape of the territory in question.
Defining the expectations for our board members and employees helps ensure that wealways conform with legal and regulatory requirements and with societal norms, which isessential in our endeavor to expand our business fields and develop new business ideas.

Key actions
Supply chain action
Rapid economic globalization has given rise to colossal multinationals. Many areextending their supply chains into developing economies in an effort to drive down costs.
This trend has exacerbated socioenvironmental issues. Examples include human rights
issues such as forced labor and child labor, widening inequality, and environmental
degradation. Along with our supply-chain partners, we are determined to fulfill our
corporate social responsibility by creating positive socioeconomic impacts.
- 65 RESPECT FOR HUMAN RIGHTSPersonal information protection
We have established the Personal Information Protection Policy.

Employee health and safety

Rectification, redress
Whistleblowing hotline
We have a group-wide hotline (the KOKUYO Group Hotline). Employees can use thehotline to raise concerns about compliance or business ethics when they feel
uncomfortable raising such concerns through the usual channels, or if they doubt that theusual channels would resolve the issue satisfactorily. The hotline is global and accessible toall employees of the global KOKUYO Group, whether they work in Japan or an overseas
location.

- 66 RESPECT FOR HUMAN RIGHTSWORKSTYLE REFORM, DIVERSITY, AND INCLUSION

Labor and TalentWorkstyle Reform, Diversity, and Inclusion
Basic Concepts
Well-being—the state of being healthy and happy—is something we want to see in the workplace and insociety. To that end, we want to build a diverse and inclusive organization, an organization in which everyone
feels valued and empowered, regardless of gender, disability, or nationality.

Systems
Measures to Promote Workplace Diversity*
We exceed regulatory requirements in our effort to support the careers of diverse employees and accommodate their needs
associated with each life stage. Underlined text indicates a measure that exceeds regulatory requirements.

Maternity leave

Pregnant employees are entitled to a leave of absence for aperiod lasting from six weeks before the due date (14 weeks if
a multiple pregnancy) to eight weeks after.

Spouse’s leave

Employees whose spouse is pregnant are entitled to two days
leave around the due date.

Parental leave

Employees are entitled to a leave of absence to care for theirchildren until the child’s 2nd birthday (if the child’s second
birthday falls in April, until the end of that April).

Sick child leave

Employees with children who are yet to enroll at elementary
school are entitled to five days of leave a year or, if they havemultiple applicable children, 10 days of leave a year (the leave
can be taken on an hourly basis).

Nursing care leave

Employees are entitled to take, for each care dependent, up to
three periods of leave totaling no more than 183 days.

Short nursing care leave

Employees are entitled to take, for each care dependent, fivedays of leave a year or, if they have multiple elderly
dependents, 10 days of leave a year (the leave can be taken
on an hourly basis).
- 67 RESPECT FOR HUMAN RIGHTSChildcare: Employees with children are entitled to take shorter
work schedules until the children complete grade 3 ofelementary school.
Nursing care: Employees with dependents are entitled to takeshorter work schedules for up to three years for eachdependent.

Shorter hours

Work from home

We promote a mixture of home and office working.

Complete flextime (with no predetermined core period)

We encourage employee productivity with flexible work hours.

Re-employment system for employees who voluntarily
resigned

We run a returnship program to help reintegrate into theworkplace regular employees who resigned because of
marriage, childbirth, childcare, nursing care, spouse relocation,
overseas study, charity work, a career change, or other valid
personal reasons. We believe that bringing in outside
experience and insight further increases the diversity of ourorganization.

Re-employing mandatory retirees

We have in place a system which, in principle, allows
employees who wish to work at the KOKUYO Group after
retiring at the mandatory age of 60 to continue work as senior
employees. Through this initiative, we offer opportunities for
employees to continue applying themselves in society after
mandatory retirement. At the same time, we can expect them to
use their experience and knowledge developed so far in theirwork to contribute toward developing younger employees.

*Programs of KOKUYO and our major subsidiaries

Kokuyo-Style Hybrid WorkIn 2022, we launched Kokuyo-Style Hybrid Work. This program honors diversity while encouraging employees to engage inworkstyles that improve the productivity and creativity of the team as a whole, so that personal growth can accompany teamoutcomes. KOKUYO’s distinctive workstyle model is practiced by supporting each employee’s life-based working, a term we
use to describe a situation in which the one’s workstyle, learning style, and lifestyle are balanced and embody one’s
uniqueness. For example, employees choose one of three workstyle categories (office-based, balanced, home-based) andthen decide with their superiors on a workstyle that will best suit their individual and team performance. Teams regularly review
members’ workstyles to see how they can improve. With the workplace expanding, we provide employees with a satellitestyle multipurpose space, known as n.5 (pronounced “enu-ten-go”). The space may be used as a satellite office, but it canalso be used for activities related to employees’ working, learning, and living. Employees use n.5 for a variety of purposes,
including for self-led seminars and other self-organized events.”

Flextime in distribution centers- 68 RESPECT FOR HUMAN RIGHTSThe distribution industry faces a number of labor challenges. For example, restrictions on truckers’ overtime will come into
effect in Japan in 2024. To address the challenges, KOKUYO Logitem Co., Ltd., has embraced workstyle reform. While many
have written off flextime as unfeasible for the distribution industry, KOKUYO Logitem, having already introduced flextime for
office staff back in 2009, introduced it for distribution center staff in 2022. With the take-up rate improving in the workplace,
KOKUYO Logitem’s initiative has now become a best practice example for flexible workstyles in the industry.

Achieving a Good Work/Life Balance
The KOKUYO Group endeavors to create an employee-friendly working
environment with consideration for the work/life balance. These initiatives
have been recognized. Three companies in our group have acquired theKurumin Mark as of the end of December 2022. The Kurumin Mark is
granted to companies and organizations which proactively support
childrearing by the Ministry of Health, Labour and Welfare that is working
to reduce the declining birthrate. This initiative is based on the Law for
Measures to Support the Development of the Next Generation.
* The companies which have acquired the Kurumin Mark (as of the end of December 2022):
KOKUYO Co., Ltd., Kaunet Co., Ltd., and KOKUYO Marketing Co., Ltd.

Employing People with Disabilities
KOKUYO has been an active employer of people with disabilities ever since1940. In that year, KOKUYO started recruiting students from a school for thedeaf in Osaka (now known as Chuo School for the Deaf). The students were
employed in the company’s factory in Imazato, which stood on the site ofwhat is now our Head Office. A turning point in our policy for employing
people with disabilities came in 2002, when we unveiled a program ofstructural reform. This reform program involved spinning off our business
units into new companies. A question we then faced was how to provide

Heartland Co., Ltd., is a special subsidiary of
KOKUYO. It employs people with disabilities andjobs in the new group companies for people with disabilities. In September

specializes in the running of agriculture. It creates

2003, we founded KOKUYO K Heart as a “special subsidiary” (meaning aemployment for a total of approximately 7,000

disability-friendly employer that is counted as part of the parent company).
In December 2006, we founded Heartland, a subsidiary devoted to
employing people with mental disabilities. As of June 1, 2022, people withdisabilities make up 2.33% of the group’s workforce.

Participating in the Iku-boss Corporation Alliance
KOKUYO has been member of the Iku-boss Corporate Alliance (Sponsored
by Fathering Japan) ever since the program began in December 2014. This
agenda requires a change of attitudes in employee management, especiallyin regard to work-life balance: Managers must provide an understanding
and supportive environment so that employees can balance family and- 69 RESPECT FOR HUMAN RIGHTS

people with disabilities in the region annually.

work commitments and perform at their best level. We want to take theopportunities afforded to us by participation in the Iku-boss Corporation
Alliance. We will share knowledge with advanced companies that have thesame awareness of issues as us to rethink the optimal state of our diversity
management, workstyles and workplace culture. We will think about andnurture the ideal image of a boss (Iku-boss) in the new era throughcollaboration between participating companies. At the same time, we will
aim to connect that to solving our customers’ issues as a company that
proposes new workstyles.

- 70 RESPECT FOR HUMAN RIGHTSHUMAN RESOURCES MANAGEMENT

Labor and Talent

Human Resources Management
Basic Concepts
We aim for a cyclical process of employee growth and business growth. This approach balances two goals:
expanding our business portfolio to cultivate a diverse ecosystem of businesses, and allowing individuals to expand
their career opportunities.
Creating a Cyclical Process of Employee Growth and Business Growth

Systems
Creating Opportunities to Take on New Challenges
In fiscal 2018, we launched a new employee reward system. Line managers receive rank-based pay, which reflects the
person’s roles and responsibilities with no regard to their age or experience. Regular employees receive skill-based pay,reflecting the person’s knowledge, skills, or training. This new system delineates organizational functions and roles according
to the company’s strategy, ensuring that the right person is matched to the right job. It also encourages dialogue between
managers and employees concerning the company’s goals and how the employee can help achieve them. Attainment of thesegoals (measured on an absolute scale) is taken into account in employee evaluations in order to achieve a more differentiatedapproach to evaluation and treatment. We have been strengthening our initiatives to match and promote the right people to- 71 RESPECT FOR HUMAN RIGHTS

the right jobs and to develop their abilities while utilizing our personnel system as infrastructure since FY2019.” In fact, we are
increasingly promoting based on merit, not seniority. In a growing number of cases, employees are promoted to line manager
in their early 30s, to middle manager (department manager) in their late 30s, and to an executive position in their 40s. We
are proceeding with our third medium-term plan, Field Expansion 2024, which we announced in November 2021. The planforms part of our long-term vision for 2030, titled Change, Challenge, Create (CCC) 2030. As part of the plan and vision, weare training leaders who will drive the transformation and creation of business. We are also increasing the mobility of in-househuman resources to create opportunities in which diverse employees play an active role.

Human Resources Management Structure to Create Cyclical Process of Employee Growthand Business Growth
We strategically move through the human resources training cycle with a commitment to creating new opportunities anddiscovering those who are rough around the edges but who have great potential at an early stage, appointing and promoting
human resources in a timely manner, backing those who take on challenges, and conducting growth reviews from multiple
viewpoints.

Career Center: Encouraging Employees to Take on New Challenges
In 2018, we opened the Career Center to facilitate our goal of linking employee growth with business success andempowering employees to challenge themselves and expand their limits. The Career Center offers employees one-on-one
careers counseling with a professional career adviser. During the counseling, employees use a tool called Career Challenge
to communicate the challenges they feel they could take on, or the skills they feel they could improve, in connection with theorganization’s three-year strategy. Such one-on-one dialogues help clarify each employee’s intentions for their professional- 72 RESPECT FOR HUMAN RIGHTS

development, giving managers a better idea of what work to assign them. In turn, the employees feel all the more motivatedand empowered.

Initiatives in 2022
Creation of Opportunities to Take on New Challenges

20% Challenge: Internal moonlighting
To promote an empowered workplace in which employees actively pursue opportunities for professional development, welaunched 20% Challenge, a program of internal moonlighting in which participants spend 20% of their working timeengaging in a job for another organizational division. Organizational divisions issue recruitment notices for certain jobs(“challenges”), employees apply for them, and the head of the division in question works with the HR team to find the rightcandidate. The program runs for three to 12 months, and participants’ achievements and efforts count toward theirindividual personnel evaluation. Over three years, approximately 193 employees have participated. These participants
stepped across organizational boundaries to engage in challenges such as market research for overseas businesses,
strategy support, R&Ding solutions for digital learning, and raising employees’ eco-awareness. The idea is that employees,
by dividing their time 80–20 between their normal work and the new assignment, will raise workplace productivity withoutcompromising their normal work. The program is helping us to visualize workplace activity and identify aspects to rectify orrecalibrate through dialogues between the employees concerned and their managers and HR.

Examples of challenges
Theme No. 4

Theme No. 7

KOKUYO Marketing University and KOKUYO Marketing Graduate School
KOKUYO Marketing University is a management report-based practical program for younger employees in their third to
twelfth year after leaving school. It aims to allow participants to take on the challenge of a way of working that promotes
issue solving by capturing unsatisfied needs from the customer’s point of view. The participants do this through theacquisition of marketing skills by devising new forms of business and formulating strategies. After they have learned
techniques for marketing strategy, attendees start applying this knowledge in a project to create a new concept for a
KOKUYO product. Under the guidance of external corporate strategists, they spend around half a year perfecting the
product idea and then present it to the management. We started the program in 2017. More than 151 younger employees
in all types of jobs have taken on challenges not just limited to development and planning. Now over five years’ old, theprogram continues to provide a starting point for employee development and action. For example, attendees can enhancetheir learning by making use of the program’s mentorship system, in which they receive support from graduates of the
program. Additionally, attending the program leads to positive changes in workplace outputs and encourages theemployees to accept an offer of redeployment and the fresh challenges it brings. KOKUYO Marketing Graduate School isa program mainly for mid-level leaders in their 30s and 40s. It aims to allow participants to take on the challenge of away of proceeding with work that examines strategies by objectively considering the future business environment. During- 73 RESPECT FOR HUMAN RIGHTS

the program, attendees are presented with 10-year business themes determined by the management. Under the guidanceof external marketing professionals, they spend around nine months engaging in team work to perfect their growth strategy
for KOKUYO and then present it to the management. A cumulative total of approximately 93 employees have taken on thischallenge as of the fourth year of the program in 2022. In addition, approximately 70% of the 69 participants in the first
three years of the program have grown and are playing an active part in the company after seizing opportunities to takeon the challenge of an even larger role such as through company-wide projects after completing the program.

KOKUYO Marketing University, seventh

KOKUYO Marketing Graduate School,

year: Group discussion

third year: A final presentation session- 74 RESPECT FOR HUMAN RIGHTSEMPLOYEE SAFETYEMPLOYEE HEALTH AND SAFETY

Employee safety
Basic Concepts
KOKUYO believes that creation of a safe, secure and pleasant working environment, safety measures in times ofdisaster and other measures are the foundations for employees to work vigorously and demonstrate their full abilities.
Therefore, the KOKUYO Group Central Safety Health Committee—which has the function of overseeing safety andhealth within the KOKUYO Group—takes the lead to link the health and safety committees of our offices to establish
mechanisms and systems while actively exchanging opinions with our employees.
KOKUYO Group Safety and Health Basic Policy【Basic Policy】
We take a safety-first approach on the belief that the cornerstone of all our business is the mental and physicalwellness of every employee.

【Code of Conduct】
1. Comply with all relevant laws and regulations (such as the Industrial Safety and Health Law) as wellas internal guidelines and standards.
2. Encourage continuous and autonomous workplace improvement, and strive to prevent occupational
accidents and health problems.
3. To ensure the health and safety of everyone involved in the Group’s business, we promote thecreation of a transparent culture in which everyone participates.

Systems
KOKUYO Group construction industry health-and-safety conferences
During Japan’s National Safety Week* (first week of July), we organize health-and-safety conferences to enhance safetyconsciousness across the corporate group. The conference in fiscal 2022 was well attended. The conference used a hybrid
format: It was primarily an offline event, with anti-infection measures taken, but the event was also livestreamed.
- 75 EMPLOYEE HEALTH AND SAFETY* Run by the Ministry of Health, Labour and Welfare and the Japan Industrial Safety & Health Association, National Safety Week is a campaign that calls upon employers
to take voluntary actions to prevent workplace injuries. It also aims to raise awareness about health and safety and entrench workplace safety.

Construction industry: KOKUYO Group construction industry health-and-safety conferences
The KOKUYO Construction Industry Health and Safety Promotion Committee organizes health-and-safety conferences atseven venues for our construction partners in KOKUYO Group. It does so on the belief that employee health and safety isfoundational to business growth. The conferences in fiscal 2022 used a hybrid format: They were held offline for the firsttime in three years and also webcasted. During the conferences, the committee reported its activities and presented
awards to our construction partners.
Plants: Safety conventions and safety patrols in plants in the KOKUYO Group in Japan
We hold safety conferences and conduct safety patrols at seven bases in five plants in Japan. There were again
explanations about occupational accident data and safety initiatives and themed training at the safety conferences in
FY2022 as there are every year. We were able to hold these conferences by taking measures such as devising ways to
avoid the Three Cs (crowded places, close contact settings and closed spaces) in each plant. We will also continue toprovide opportunities to take a pause and think about safety once a year at each site over our entire group in the future.
We will do that to connect a culture that protects safety with the future.
Development: Manufacturing safety conference and safety patrol
With participation by workshops which develop KOKUYO products and inspect quality, we hold a safety conference andconduct a safety patrol at the KOKUYO Head Office. However, we held these in a hybrid format both in-person andonline to avoid the Three Cs (crowded places, close contact settings and closed spaces) in fiscal 2022. This safety
conference is a forum to once again inform employees about occupational accident prevention and to confirm with them
what needs to be done prevent such accidents. We do that because machinery and equipment and many chemical
substances are also often handled at development sites. The hybrid format resulted in a higher number of attendees, as it
was possible for remote workers and staff at the Shinagawa office to attend online. The conference therefore succeeded inraising safety awareness in many employees.

Initiatives in 2022
Meetings for Plants in the KOKUYO Group to Exchange Opinions in 2022
We held meetings for plants to exchange opinions organized by the KOKUYO Group Central Safety Health Committee from
October to November. These meetings featured exchanges of opinions about daily safety and health activities and futureissues in each company with plant managers and safety personnel from each plant in our group in Japan and overseas. We
proactively exchanged opinions aiming to widen the circle of safety and health in our group that transcends industrial sectors.
- 76 EMPLOYEE HEALTH AND SAFETY

The KOKUYO Group believes the health and safety of our employees are the foundations that support the growth of ourcompany. Based on that idea, we are aiming to maintain the health and safety of employees through such activities to build anenvironment and culture where they can work with enthusiasm.

Foreperson leadership training
To help develop the talent pool for plants over the medium and long term, the KOKUYO Group Central Safety HealthCommittee works and KOKUYO MVP (one of our manufacturing subsidiaries) jointly run leadership workshops with anemphasis on communication skills. We plan to roll this leadership program out to other plants. In this program, attendees willpractice getting their message across and engaging in dialogue effectively so that they can foster a positive workplace culturethat keeps employees feeling secure and confident.

- 77 EMPLOYEE HEALTH AND SAFETYEMPLOYEE HEALTHEMPLOYEE HEALTH AND SAFETY

Employee health
Basic Concepts【Well-being: Building a healthy workplace】
The foundations of wellbeing are employee health and engagement.

【KOKUYO Health and Productivity Declaration】
We have issued the following declaration to signal our commitment to building a healthy workplace as part of oursustainability strategy.
KOKUYO Health and Productivity Declaration
Sustainable Business Strategy is stated as follows: To build a self-directed, collaborative society, we will present a
tomorrow you can’t wait for and lead the way in sustainable business practices. A key part of this strategy is
promoting wellbeing both within and outside our organization.

- 78 EMPLOYEE HEALTH AND SAFETY

Three main strategies for improving wellbeing:

・Pitch ideas for new workstyles
・Promote diversity, inclusion, and innovation
・Promote employee health and engagement
Well-being (a state of being healthy and happy) is critical to building a healthy workplace. We therefore support
employees’ physical and mental health and encourage employee engagement. In this task, we cooperate with our
employees, our health insurance association, and our workforce’s labor union, gleaning insights and best practices forpromoting well-being in society at large.

Systems
Six core actions for building a healthy workplace

Organizational framework for building a healthy workplace
In fiscal 2022, we established the Health Management Taskforce within the Subcommittee for Building an Organizational
Framework for Sustainability and Promoting Wellbeing in order to expedite efforts to build a healthy workplace. Employee
health and engagement is managed by the KOKUYO Group Central Safety Health Committee, Risk Management Committee,
KOKUYO’s health management staff, group company members involved in building a healthy workplace, health insurance
associations, labor unions, and the Health Management Taskforce.

- 79 EMPLOYEE HEALTH AND SAFETY

Strategic roadmap for KOKUYO health and productivity management
As part of our strategy for promoting employee health, we set out goals, tasks, expected outcomes, and investments.
* The roadmap shows, from the left, investments, expected outcomes, tasks, and the ultimate goal.

- 80 EMPLOYEE HEALTH AND SAFETY

Initiatives in 2022
Recognition as a 2023 Certified Health & Productivity Management Outstanding
Organization (White 500) and a 2023 Certified Heath & Productivity Management
Outstanding Organization (Large Enterprise Category)On March 8, 2023, KOKUYO and Kaunet became two of the 500
whitelisted companies in an award program run by the Ministry of
Economy, Trade and Industry and Nippon Kenko Kaigi, earning the official
designation “2023 Certified Health & Productivity Management
Outstanding Organization (White 500).” On the same date, KOKUYO
Marketing earned a separate accolade under the same program (“Healthand productivity Management Outstanding Organization” 2023, large
enterprise category). The program (officially translated as “2023 CertifiedHealth & Productivity Management Outstanding Organizations Recognition
Program”) gives recognition to companies that make exemplary efforts
toward a healthy and productive workplace. We will continue to promote
well-being in line with the KOKUYO Health and Productivity Declaration,
which we established in October 2019 and updated in 2022.

Employee Health Goals: 2022 Results
In 2013, we set concrete goals for promoting health behaviors that help prevent lifestyle diseases. Since then, our internal
health insurance associations have worked with the health management office on actions to meet these goals. The healthpromotion activities include tracking employees’ daily steps and weight, organizing fun walking campaigns, and running dietseminars in partnership with public health centers. We also encourage our employees to undergo regular screening forcolorectal cancer and breast cancer. To that end, we have installed a mammography unit on the premises. Additionally, we
worked to increase the range of health-check options, giving employees more opportunities to go and get a health check. For
example, comprehensive medical checkups (called “ningen dock”) are available for employees who want them. We have
had to suspend some services because of the pandemic, but we still worked to promote health consciousness by running an
online survey on health behaviors and an e-learning course.

Showcasing our expertise in health and productivity management through THE CAMPUS, aspace for experimenting with new workstyles and lifestyles
In February 2021, we opened THE CAMPUS in Shinagawa, Tokyo. THE CAMPUS is a space for experimenting with newworkstyles and lifestyles.
THE CAMPUS is a space in which people from different professional backgrounds gather to explore and test new ideas to
identify the values of the future. It is tied in with KOKUYO’S Next Experience, a project to engage in tasks for solving longterm social issues. In the past, we have used THE CAMPUS to broadcast our solutions for health and productivity
management.

- 81 EMPLOYEE HEALTH AND SAFETYWe continue to use THE CAMPUS to showcase our solutions for social issues. One such issue is a rise in mental healthproblems following a shift to remote work. For this issue, we present techniques for enhancing communication, fostering interproject or inter-departmental collaboration, and encouraging concentration and immersion. These solutions include interior
goods and stationery that can be modified to suit the user’s purpose.
For concerns about infection risk, we exhibit empirical techniques that help prevent droplet-based, contact-based, or aerosolbased infections, along with IoT-based analytics to show who is infected or who has come into contact with an infected
person.
We will continue using THE CAMPUS to showcase solutions for supporting employees’ physical and mental health.
The initiatives showcased at The Campus have earned a number of our facilities in Japan the WELL Health-Safety Rated seal.
* The WELL Health-Safety Rating for Facility Operations and Management provides third-party verification that the certified building is clean and safe. The rating waslaunched by the International WELL Building Institute in June 2020 in response to the spread of Covid. The criteria for the rating include anti-Covid measures, emergency
preparedness programs, cleaning and sanitization procedures, and air and water quality management.

Other initiatives

・Employee welfare
Health is the key principle in Play Work Mileage, our choice-based program of employee welfare. Play Work Mileage
supports employee health in the following ways.

）

1 It encourages employees to invest in their own health
Employees can redeem points against expenses they incur in promoting their health, including expenses for optional
medical checkups (ningen docks), medical bills, and other costs. In fiscal 2022, our employees redeemed a collective
total of 170 million yen in points.

）

2 It encourages employees to promote their own health
Employees earn points according to distance walked or other everyday fitness efforts. Our Walking Challenge program
encourages employees to walk more by tracking employees’ walking performance on a leaderboard. In fiscal 2023,
we provided a walking app to make the program easier to use.

・A program for encouraging health screening
Before and after receiving a regular health screening, employees attend a seminar run by an occupational therapist. Theseseminars encourage employees to make improvements based on the results of their screening. They are held online so that
employees’ family members can attend.

・Smokefree workplace
Data from Japan Tobacco’s annual Japan Smoking Rate Survey indicates a high rate of smoking among male employees inour corporate group. On April 11, 2020, Japan banned indoor smoking with some exceptions. In conjunction with the ban,we banned smoking on all company premises in Japan. We continue our efforts to raise employees’ awareness of the risksof smoking.

Health Insurance Association: Increased Subsidy for Cancer Screening- 82 EMPLOYEE HEALTH AND SAFETYAcross the group, rates of screening for breast cancer and cervical cancer are low at 20%. Accordingly, in April 2020, the
KOKUYO Health Insurance Association raised the subsidy for breast cancer screening from 5,000 to a maximum of 10,000
yen.
We have made it possible to undertake free cervical cancer risk screenings from 2021. That program also extends tocolorectal cancer screenings for those who are 30 years old and over.
We will continue our efforts to help prevent or detect cancer and promote cancer awareness.

Mental Health Action
We conduct an annual stress check as required by law.
To promote a culture of self-care, in which employees feel comfortable asking for help after the stress check, we haveintroduced the Employee Assistance Program. This externally run program encourages employees to recognize the warning
signs and symptoms of stress and to seek preventive health services at an early stage.
In addition to the employee survey, we have been conducting the pulse survey monthly since 2021. The purpose of this is topromote fixed-point observation of issues in ways of working and workplaces and to encourage dialogue in teams to build
even better organizations.
We identify issues that we will tackle with priority and measures to deal with those issues by business and human resource
departments engaging in dialogue while comprehensively looking at these survey results and personnel and organizationaldata.

- 83 EMPLOYEE HEALTH AND SAFETYGOVERNANCE

Inculcating Compliance
Basic Concepts
Operations across our group are governed by a range of regulatory standards, including those related to quality,business transactions (e.g. fair trading), environmental impact, labor, health & safety, accounting, tax, anti-bribery, andinformation management. To ensure that we always comply with these regulations and uphold high ethical standards inall our business activities, we have established the KOKUYO Group Code of Conduct, which all employees are
expected to follow. This code applies to everyday business activities across the global group.

Systems
Whistleblowing Hotline
KOKUYO has a group-wide hotline (the KOKUYO Group Hotline). Employees can use the hotline to raise concerns about complianceor business ethics when they feel uncomfortable raising such concerns through the usual channels, or if they doubt that the usual
channels would resolve the issue satisfactorily. The hotline is global and accessible to all employees of the global KOKUYO Group,
whether they work in Japan or an overseas location.
It is appropriate for the hotline to receive a certain amount of inquiries/reports given that the number of inquiries/reports received by
the hotline is an indicator of the hotline’s effectiveness. The number received in the past several years has remained fairly constant.
Around half of the inquiries/reports concern management issues like workplace bullying/harassment and personnel evaluations.

Compliance Training
We have also provided guidelines on gifts and hospitality to ensure that our employees never deviate from acceptable businesscustoms when giving or receiving gifts or hospitality. Similarly, we provide annual training to prevent collusion in bid-rigging.

- 84 INCULCATING COMPLIANCE

GOVERNANCE

Risk Management
Basic Concepts
Our third medium-term plan, Field Expansion 2024, commits us to tweaking existing businesses and expanding into
new business fields. We must therefore detect risks that could disrupt these efforts and then actively develop measures toaddress these risks. To that end, we are enhancing our risk sensitivity and developing a risk management program
involving both management and frontline staff.

Systems
Risk Management Promotion Structure
We have established the Risk Management Committee as a committee to advise the President. The purpose of this committee is topromote risk management to appropriately control (avoid, reduce, transfer and accept) the impact on management bycomprehensively grasping and evaluating various risks involved in corporate group management. In February 2023, we established
the Risk Management Division to bolster risk management across KOKUYO Group.
As the nexus of risk management, the Risk Management Committee coordinates efforts between management and frontline
workplaces to minimize the risk of an unforeseen corporate scandal or the risk of an employee perpetrating or getting embroiled inmalpractice.
In non-emergency times, the committee holds regular quarterly meetings to provide unified management of risks that have occurred in
KOKUYO Group and to undertake a PDCA cycle in which it monitors corrective/preventive action and risk response planning. The
committee has subcommittees devoted to risk categories that pose a particular concern: cybersecurity risk and labor risk. For
cybersecurity risk, the committee analyzes cyber vulnerabilities. For labor risk, it analyzes responses in employee surveys to identify- 85 RISK MANAGEMENT

occupational issues in group companies. In these ways, the committee contributes to a more effective and efficient system of risk
management for KOKUYO Group.
< Organizational framework >< Risk management process >- 86 RISK MANAGEMENT

Business Continuity Planning
We have developed a business continuity plan, which we continually review and revise as part of a business continuity planninglifecycle. The plan includes measures for maintaining a stable supply of goods when an emergency disrupts operations in our plants oroffices. Mindful of how severely businesses can be affected by the increasingly prevalent catastrophic events such as earthquakes,
extreme storms, flooding, fires, major power outages, and infectious disease, we have reaffirmed the importance of getting the initial
responses right and minimizing the damage from such calamities. We use emergency manuals, emergency drills, and similar means toensure that every employee will act swiftly and safely in an emergency to safeguard human life. In view of the rising concern forsustainability (ESG, SDGs), our emergency power sources include batteries charged by a solar energy system.

Initiatives Regarding Management of Intellectual Property Rights
As one of the strategies to differentiate ourselves from competitors, the KOKUYO Group promotes the following initiatives toencourage the acquisition of intellectual property rights, and at the same time, to respect intellectual property rights of others.
1 Management and Operational Structure of Intellectual Property Rights
Our legal department has a unit devoted to managing intellectual property (IP) for our subsidiaries in Japan and overseas. The unit
works to standardize and unify the use of, and strategies concerning, intellectual property across KOKUYO Group. The unit’s
duties include managing procedures for obtaining protections for our IP (inventions, designs, and trademarks), conducting
preliminary surveys to ensure that we avoid violating the IP rights of others, and monitoring rival products to check for potential
violations of our own IP rights. Should a dispute occur, the unit will coordinate with the management to enable a swift andsatisfactory resolution.
2 Protection and Legal Compliance of Intellectual Property Rights
The KOKUYO Group Code of Conduct stipulates that we respect the intellectual property rights of others while the intellectual
property unit establishes and operates the system for research, analysis, and close investigation to prevent and avoid the violationof rights held by others. In addition, awareness-raising activities for respecting the intellectual property rights of others andimproving awareness of legal compliance are conducted for development departments through training as the necessity arises andas part of daily work.
3 Promotion of Creation and Utilization of Intellectual Property Rights
The intellectual property unit and development departments work closely from the early stage of development to increase thesuperiority of the products in the market and focus on creating and discovering inventions that contribute to differentiation fromcompetitors’ products. We also aim to adhere to Sec. 35 of the Patents Act and establish an incentive system for employee
invention as an internal rule, with the aim of increasing customer satisfaction and encouraging inventions that strengthen theGroup’s development.

Initiatives Regarding Information Security
The KOKUYO Group undertakes the establishment of an information security management system, adherence with relevant laws andregulations, and safety management of confidential information (customer information, personal information, etc.) in our possession
obtained as part of our business.
1 Laws and ordinances regarding information security and other standards are adhered to.
- 87 RISK MANAGEMENT

2 Personal information is managed according to the Personal Information Protection Policy defined by the
KOKUYO Group.
3 Appropriate safety measures are taken in order to prevent unauthorized access to information assets, aswell as loss, falsification and leakage, etc. of information assets.
4 Regulations and rules regarding the management and use of information assets are formulated andrevised, and education is continually conducted to employees about these regulations and rules.
5 Inspections and improvements are continually conducted on the management system and initiatives
related to information security.

Initiatives in 2022
Workshop on Business Continuity Planning 2022 for Stationery Businesses
Employees involved in the stationery business attend an annual workshop on business continuity planning. The workshop is organizedby the BCP Promotion Committee, which has members from eight business units under the Stationery Business Division. The 2022
workshop provided training to 35 attendees, spanning organizational boundaries. The committee members were joined at the event
by employees from the General Affairs Department, who attended as observers. The event had three parts. In the first part, theparticipants were informed about BCP and about BCP incidents that had occurred in the past year. In the second part, attendees
heard reports about the outcomes of initiating business continuity protocols. The third part consisted of a workshop on the theme ofsubstitute delivery. Substitute delivery means that, if the delivery functions of a distribution warehouse stop, a warehouse at anotherbase will substitute for those functions. The workshop emphasized the need to specify roles and responsibilities in substitute delivery
procedures so that everyone knows who does what. With this focus, the attendees sharpened their knowledge about what procedures
to take during a crisis, and attendee discussions resulted in an update to the BCP.

- 88 RISK MANAGEMENTDATABANK: SOCIETYDATABANKSOCIETY
Reporting Period
January 1 to December 31 of the applicable year (the results are current as of December 31)

Listening to Customers- 89 SOCIETY PERFORMANCE DATA

Employee* Composition: By Position* Employees here includes outside directors and members of the Audit & Supervisory Board

Subject

Number of Executives andDirectors

Number of Members of the Audit &Supervisory Board

Number of employees

2018

2019

2020

2021

2022

InsideNon-consolidated

5

4

3

3

2

OutsideNon-consolidated

4

3

4

4

4

Total

Non-consolidated

9

7

7

7

6

InsideNon-consolidated

0

0

1

1

1

OutsideNon-consolidated

3

3

2

2

2

Total

Non-consolidated

3

3

3

3

3

Male

Non-consolidated

1,498

1,631

1,634

1,601

1,452

FemaleNon-consolidated

521

583

607

606

610

Total

Non-consolidated

2,019

2,214

2,241

2,207

2,062

2018

2019

2020

2021

2022

Employee Composition: By Gender

Subject

Number of employees (KOKUYOGroup)

Male

Consolidated

4,865

4,946

4,899

4,915

4,645

FemaleConsolidated

1,919

2,015

1,983

1,910

2,219

Total

Consolidated

6,784

6,961

6,882

6,825

6,864

2018

2019

2020

2021

2022

Consolidated

6,784

6,961

6,882

6,825

6,864

Consolidated

1,854

1,832

2,333

2,711

4,097

1

Consolidated

21.46

20.83

25.31

28.43

37.38

Male

Five main groupcompanies of
KOKUYO

2,499

2,494

2,511

2,511

2,480

FemaleFive main groupcompanies of
KOKUYO

780

829

888

928

960

Total

Five main groupcompanies of
KOKUYO

3,279

3,323

3,399

3,439

3,440

Employee Composition: By Contract type and by Gender

Subject
Total number of employees
Non-regular employees

11Percentage of non-regular employees

Regular employees- 90 SOCIETY PERFORMANCE DATA

Senior employees

Contracted employees

Part-time/casual employees

Temporary employees

Subject

2018

2019

2020

2021

2022

Male

Five main groupcompanies of
KOKUYO

248

253

268

256

263

FemaleFive main groupcompanies of
KOKUYO

7

10

8

11

14

Total

Five main groupcompanies of
KOKUYO

255

263

276

267

277

Male

Five main groupcompanies of
KOKUYO

159

135

105

83

60

FemaleFive main groupcompanies of
KOKUYO

91

95

102

101

91

Total

Five main groupcompanies of
KOKUYO

250

230

207

184

151

Male

Five main groupcompanies of
KOKUYO

112

111

118

112

133

FemaleFive main groupcompanies of
KOKUYO

170

163

180

188

195

Total

Five main groupcompanies of
KOKUYO

282

274

298

300

328

Male

Five main groupcompanies of
KOKUYO

169

186

142

128

183

FemaleFive main groupcompanies of
KOKUYO

340

347

167

146

199

Total

Five main groupcompanies of
KOKUYO

509

533

309

274

382

* The five main group companies are KOKUYO Co., Ltd., Kaunet Co., Ltd., KOKUYO Marketing Co., Ltd., KOKUYO Supply Logistics Co., Ltd., and KOKUYO Logitem Co., Ltd.
*2 In 2022, we changed the definitions of regular and non-regular employees. “Regular employees” now includes only managing officers and non-managerial regular employees,
whereas before it also included senior employees. “Non-regular employees” now includes senior employees alongside contracted employees, and part-time or casual
employees, whereas before senior employees were not included.

- 91 SOCIETY PERFORMANCE DATA

Employee Composition: By Contract Type and by Region

Regular employees

Senior employees

Contracted employees

Part-time/casual employees

Temporary employees

Subject

2018

2019

2020

2021

2022

Within Japan

Consolidated

3,991

4,090

4,145

4,183

4,218

Overseas

Consolidated

2,443

2,475

2,347

2,308

2,646

Total

Consolidated

6,434

6,565

6,492

6,491

6,864

Within Japan

Consolidated

284

300

322

308

328

Overseas

Consolidated

3

4

4

2

18

Total

Consolidated

287

304

326

310

346

Within Japan

Consolidated

573

594

564

598

631

Overseas

Consolidated

59

45

36

70

533

Total

Consolidated

632

639

600

668

1,164

Within Japan

Consolidated

602

584

553

571

575

Overseas

Consolidated

23

37

4

2

21

Total

Consolidated

625

621

557

573

596

Within Japan

Consolidated

578

589

379

331

434

Overseas

Consolidated

1,642

1,401

974

1,162

1,557

Total

Consolidated

2,220

1,990

1,353

1,493

1,991

Employee Composition: By Age, Average Ages of Male and Female Employees, Average Tenure

Number of employees by age
group

Subject

2018

2019

2020

2021

2022

Under 30

Five main groupcompanies of
KOKUYO

376

423

470

469

465

30s

Five main groupcompanies of
KOKUYO

605

579

591

595

619

40s

Five main groupcompanies of
KOKUYO

1,326

1,233

1,150

1,076

965

50s

Five main groupcompanies of
KOKUYO

971

1,086

1,188

1,299

1,379

60s or older

Five main groupcompanies of
KOKUYO

256

265

276

267

0

- 92 SOCIETY PERFORMANCE DATAAverage tenure (years)

Average length of continuous
service (years)

Subject

2018

2019

2020

2021

2022

Male

Five main groupcompanies of
KOKUYO

46.35

46.57

46.8

47.22

45.8

FemaleFive main groupcompanies of
KOKUYO

39.36

39.33

39.32

39.79

40.05

Average

Five main groupcompanies of
KOKUYO

44.8

44.87

44.98

45.34

44.21

Male

Five main groupcompanies of
KOKUYO

20.52

20.7

20.9

21.31

19.94

FemaleFive main groupcompanies of
KOKUYO

14.3

14.06

13.83

14.05

14.16

Average

Five main groupcompanies of
KOKUYO

19.14

19.14

19.18

19.47

18.34

* The five main group companies are KOKUYO Co., Ltd., Kaunet Co., Ltd., KOKUYO Marketing Co., Ltd., KOKUYO Supply Logistics Co., Ltd., and KOKUYO Logitem Co., Ltd.

Employee Composition: By Nationality

Subject

2018

2019

2020

2021

2022

Non-Japaneseemployees in the
KOKUYO Group

Five main groupcompanies of
KOKUYO

12

12

11

11

12

Non-Japaneseemployees at
KOKUYO

Non-consolidated

12

12

11

9

10

Number of employees* The five main group companies are KOKUYO Co., Ltd., Kaunet Co., Ltd., KOKUYO Marketing Co., Ltd., KOKUYO Supply Logistics Co., Ltd., and KOKUYO Logitem Co., Ltd.

Employees Composition: Employees with Disabilities

Subject

2018

2019

2020

2021

2022

Number of employees withdisabilities

Group companies dedicated to
employing people withdisabilities

122

128

129

134

134

Percentage of employees withdisabilities

Group companies dedicated to
employing people withdisabilities

2.26

2.31

2.3

2.37

2.33

- 93 SOCIETY PERFORMANCE DATA

Breakdown of New Hires

Number of fresh graduate hires

Number of mid-career hires

Percentage of mid-career hires

Turnover rate

Subject

2018

2019

2020

2021

2022

Male

Five main groupcompanies of
KOKUYO

47

33

40

28

35

FemaleFive main groupcompanies of
KOKUYO

28

37

40

18

18

Total

Five main groupcompanies of
KOKUYO

75

70

80

46

53

Male

Five main groupcompanies of
KOKUYO

27

32

28

23

47

FemaleFive main groupcompanies of
KOKUYO

22

21

23

24

26

Total

Five main groupcompanies of
KOKUYO

49

53

51

47

73

KOKUYO

32

25

22

29

43

Male

Five main groupcompanies of
KOKUYO

2.38

1.60

1.96

1.39

1.91

FemaleFive main groupcompanies of
KOKUYO

2.73

2.95

1.81

1.56

2.65

Total

Five main groupcompanies of
KOKUYO

2.46

1.92

1.93

1.44

2.11

1

* The five main group companies are KOKUYO Co., Ltd., Kaunet Co., Ltd., KOKUYO Marketing Co., Ltd., KOKUYO Supply Logistics Co., Ltd., and KOKUYO Logitem Co., Ltd.
*1 As of April 2022, we are legally required to report the percentage of mid-career hires (under the revised Act for Promoting Labor Policy, enacted in that month).

- 94 SOCIETY PERFORMANCE DATA

Managerial Appointments: By Gender

Subject

2018

2019

2020

2021

2022

Male

Five main groupcompanies of
KOKUYO

20

20

22

20

18

FemaleFive main groupcompanies of
KOKUYO

0

1

2

2

2

Male

Five main groupcompanies of
KOKUYO

62

63

65

77

95

FemaleFive main groupcompanies of
KOKUYO

3

4

4

2

2

Male

Five main groupcompanies of
KOKUYO

747

750

732

768

808

FemaleFive main groupcompanies of
KOKUYO

48

54

55

69

78

Male

Five main groupcompanies of
KOKUYO

1,112

1,118

1,066

1,034

1,009

FemaleFive main groupcompanies of
KOKUYO

254

273

288

314

337

Total

Five main groupcompanies of
KOKUYO

2,246

2,283

2,234

2,286

2,349

Executives andhigher

Department
heads

Number ofmanagerial
appointments
Section chiefs

Sub-section
chiefs* The five main group companies are KOKUYO Co., Ltd., Kaunet Co., Ltd., KOKUYO Marketing Co., Ltd., KOKUYO Supply Logistics Co., Ltd., and KOKUYO Logitem Co., Ltd.

- 95 SOCIETY PERFORMANCE DATA

Managerial Appointments: Percentage of Managerial Posts Occupied by Women

Subject

2018

2019

2020

2021

2022

Percentage of middle management posts(department heads, section chiefs) occupied by
women

Five main groupcompanies of
KOKUYO

5.93

6.66

6.89

7.75

8.14

Executives
and higher

Five main groupcompanies of
KOKUYO

0.00

4.76

8.33

9.09

10

Department
heads

Five main groupcompanies of
KOKUYO

4.62

5.97

5.80

2.53

2.06

Section chiefs

Five main groupcompanies of
KOKUYO

6.04

6.72

6.99

8.24

8.8

Sub-section
chiefsFive main groupcompanies of
KOKUYO

18.59

19.63

21.27

23.29

25.04

Total

Five main groupcompanies of
KOKUYO

13.58

14.54

15.62

16.93

17.84

managerial posts (sub-section
chief or higher) occupied by
women* The five main group companies are KOKUYO Co., Ltd., Kaunet Co., Ltd., KOKUYO Marketing Co., Ltd., KOKUYO Supply Logistics Co., Ltd., and KOKUYO Logitem Co., Ltd.

Managerial Appointments: (Number of Non-Japanese Employees)

Subject

2018

2019

2020

2021

2022

Executives
and higher

Five main groupcompanies of
KOKUYO

0

0

0

0

0

Department
heads

Five main groupcompanies of
KOKUYO

0

0

0

0

0

Section chiefs

Five main groupcompanies of
KOKUYO

2

3

3

3

4

Sub-section
chiefsFive main groupcompanies of
KOKUYO

7

7

6

5

5

Total

Five main groupcompanies of
KOKUYO

9

10

9

8

9

Managerial appointments: NonJapanese managers* The five main group companies are KOKUYO Co., Ltd., Kaunet Co., Ltd., KOKUYO Marketing Co., Ltd., KOKUYO Supply Logistics Co., Ltd., and KOKUYO Logitem Co., Ltd.

- 96 SOCIETY PERFORMANCE DATA

Managerial Appointments: Percentage of Managerial Posts Occupied by Non-Japanese Staff

Percentage of managerial posts
occupied by non-Japaneseemployees

Subject

2018

2019

2020

2021

2022

Executives
and higher

Five main groupcompanies of
KOKUYO

0.00

0.00

0.00

0.00

0.00

Department
heads

Five main groupcompanies of
KOKUYO

0.00

0.00

0.00

0.00

0.00

Section chiefs

Five main groupcompanies of
KOKUYO

0.25

0.37

0.38

0.36

0.45

Sub-section
chiefsFive main groupcompanies of
KOKUYO

0.51

0.50

0.44

0.37

0.37

Total

Five main groupcompanies of
KOKUYO

0.4

0.44

0.40

0.35

0.38

* The five main group companies are KOKUYO Co., Ltd., Kaunet Co., Ltd., KOKUYO Marketing Co., Ltd., KOKUYO Supply Logistics Co., Ltd., and KOKUYO Logitem Co., Ltd.

Working Hours, Paid Leave Takeup Rate

Subject

2018

2019

2020

2021

2022

Total working hours per year

Five main groupcompanies of KOKUYO

2089.12060.62056.72092.52087.7

Non-prescribed working hours per
year

Five main groupcompanies of KOKUYO

274.9

256.3

226.9

260.3

269.1

Long-time worker rate (over 360 hours
of total annual overtime)

Five main groupcompanies of KOKUYO

28.7

23.5

17.4

24.0

25.2

Paid leave uptake rate (%)

Five main groupcompanies of KOKUYO

53.69

61.40

48.9

48.4

54.3

Yearly education and training costs per
employee (yen)Five main groupcompanies of KOKUYO

37,15637,40835,562

39,10742,955* The five main group companies are KOKUYO Co., Ltd., Kaunet Co., Ltd., KOKUYO Marketing Co., Ltd., KOKUYO Supply Logistics Co., Ltd., and KOKUYO Logitem Co., Ltd.

- 97 SOCIETY PERFORMANCE DATA

Number of Employees on Childcare Leave

Subject

Employees on childcare leave

2018

2019

2020

2021

2022

Male

Five main groupcompanies of
KOKUYO

4

6

12

26

35

FemaleFive main groupcompanies of
KOKUYO

52

60

58

72

70

Total

Five main groupcompanies of
KOKUYO

56

66

70

98

105

* The five main group companies are KOKUYO Co., Ltd., Kaunet Co., Ltd., KOKUYO Marketing Co., Ltd., KOKUYO Supply Logistics Co., Ltd., and KOKUYO Logitem Co., Ltd.

Employees on Long-Term-Care Leave

Subject

Employees taking time off for longterm care

2018

2019

2020

2021

2022

Male

Five main groupcompanies of
KOKUYO

0

3

1

0

0

FemaleFive main groupcompanies of
KOKUYO

2

1

1

1

0

Total

Five main groupcompanies of
KOKUYO

2

4

2

1

0

* The five main group companies are KOKUYO Co., Ltd., Kaunet Co., Ltd., KOKUYO Marketing Co., Ltd., KOKUYO Supply Logistics Co., Ltd., and KOKUYO Logitem Co., Ltd.

Health management

Subject

2018

2019

2020

2021

2022

Regular health checkup attendance
rate (%)

98.9

99.6

98.6

99.4

99.6

Voluntary checkup attendance number(breast cancer, colorectal cancer
checkups)

346

1,222

1,551

3,482

4,871

Regular health checkup finding rate
(%)

28.0

27.5

19.8

29.5

29.0

Percentage of employees receiving fullmedical checkup (%)

55.9

87.3

70.5

75.8

78.0

Lifestyle -related disease
occurrence/specific health checkup
attendance rate (%)

98

98

98

98

98

- 98 SOCIETY PERFORMANCE DATA

Subject

2018

2019

2020

2021

2022

Lifestyle -related disease
occurrence/specific health guidance
rate (proactive support) (%)

35

34

39

47

42

Lifestyle -related disease
occurrence/lifestyle -related disease
medical costs (including healthinsurance dependents) (million yen)

143

139

161

144

149

Response rate for stress check survey(%)

Employees of companies that conduct
a stress check survey

96.0

94.8

96.4

95.9

94.1

Stretch check score (deviation value)

Employees of companies that conduct
a stress check survey

54

54

55

54

49

Employees of companies that conduct
a stress check survey

4.9

5.5

4.8

5.6

9.3

Percentage of employees with poor
mental health(with severe stress) (%)

4

Number of employees who took leave
due to poor mental health

5

11

10

16

10

16

Number of employees who took leave
due to other illnesses

5

6

11

9

2

5

Number of employees who retired due
to poor mental health

5

8

3

10

1

5

Number of employees who left due toother health issues

5

5

6

6

8

2

Absenteeism: Annual working days per
employee lost due to injury or
disease 1

Kokuyo (including what was once Ket),
Kaunet4.3

Presenteeism: Score for productivity
lost because of illness, injury, or otherconditions in employees attending
work 2

Kokuyo (including what was once Ket),
Kaunet21

Employee engagement score(deviation value) 3

Employees of companies that conduct
a stress check survey

49

49

49

Percentage of participants in healthactivity(walking campaign) (%)

Kokuyo (including what was once Ket),
Kaunet

19.4

23.8

25.3

Percentage of participants in healthactivity(walking campaign) satisfied by
activity (%)

Kokuyo (including what was once Ket),
Kaunet50

51.1*1 Absenteeism is calculated as follows: Annual working days lost due to injury or disease divided by total working days for all employees.
*2 The presenteeism score represents the difference between maximum productivity (scaled at 100) and employees’ actual productivity rate (according to survey findings).
*3 The employee engagement score describes the extent to which employees identify with and actively commit themselves to the organization’s strategy and goals.
*4 The vendor estimation method was changed in 2022.
*5 Kokuyo (including what was once Ket), Kaunet, Kokuyo Logitem, Kokuyo Supplies Logitem, Kokuyo Marketing.

Occupational Health and Safety
Coverage: KOKUYO Co., Ltd. Mie Factory and Shibayama Factory, KOKUYO Product Shiga Co., Ltd., KOKUYO MVP Co., Ltd.,IWAMI Paper Industry Co., Ltd.

- 99 SOCIETY PERFORMANCE DATA

33

90

2018

Number of work-related accidents

Work-related accident frequencyrate(%) 1

2021

2022

5

2

5

1

6

Mie Factory

2

1

0

0

0

Shibayama Factory

0

0

0

0

1

KOKUYO Product Shiga

0

0

0

0

0

KOKUYO MVP

3

1

3

1

5

IWAMI Paper Industry

0

0

1

0

0

Consolidated
factories

2.10

0.85

2.33

0.44

2.61

Mie Factory

2.82

1.37

0

0

0

Shibayama Factory

0

0

0.02

0

1.43

KOKUYO Product Shiga

0

0

0

0

0

5.90

2.16

6.79

2.14

11.19

0

0

6.67

0

0

Consolidated
factories

0.14

0.05

0.02

0

0

Mie Factory

0.20

0.15

0

0

0

Shibayama Factory

0

0

1.83

0

0

KOKUYO Product Shiga

0

0

0

0

0

0.39

0

0.09

0.01

0.00

0

0

0.03

0

0

Consolidated
factories

415

132

63.5

8

32

Mie Factory

173

130

0

0

0

Shibayama Factory

0

0

12

0

26

KOKUYO Product Shiga

0

0

0

0

0

242

2

46.5

8

6

0

0

5

0

0

IWAMI Paper Industry

KOKUYO MVPIWAMI Paper Industry

Workdays lost due to work-related
accidents

2020

Consolidated
factories

KOKUYO MVP

Severity rate for work-related
accidents(%) 2 3

2019

KOKUYO MVPIWAMI Paper Industry* Number of work-related accidents includes only accidents that resulted in at least one full workday of leave. It excludes accidents that employees suffered when commuting.
*1 Work-related accident rate is calculated as follows: Number of employees who experienced a work-related accident × 1,000,000 / Total person-hours*2 Work-related accident severity rate is calculated as follows: Number of lost workdays / Total person-hours × 1,000*3 The work-related accident rate is shown with the third decimal place rounded off
A score of “0” indicates that absolutely no fatal work-related accidents occurred.
On the other hand, a score of “0.00” would indicate a fatality rate higher than 0 but less than 0.005.

- 100 SOCIETY PERFORMANCE DATAENVIRONMENTAL PERFORMANCE DATADATABANKENVIRONMENTAL PERFORMANCE DATA

■Reporting Period
Fiscal 2022 (January 1 to December 31, 2022)■Guidelines Used for Reference
Ministry of the Environment, Environmental Report Guidelines (2012 Edition)
Ministry of the Environment, Environmental Accounting Guidelines (2005 Edition)
Global Reporting Initiative (GRI), Sustainability Reporting Guidelines■Organizational Units Covered
From 2012, the scope of coverage was extended to all consolidated subsidiaries.

Consolidated Subsidiaries

Other Subsidiaries and Affiliates

KOKUYO Co., Ltd.

Japan

Overseas

Kaunet Co., Ltd., KOKUYO Marketing Co., Ltd.,KOKUYO Supply Logistics Co., Ltd., KOKUYO
Logitem Co., Ltd., KOKUYO Product Shiga Co., Ltd.,KOKUYO MVP Co., Ltd., LmD International Co., Ltd.,
Actus Co., Ltd., KOKUYO Finance Co., Ltd, KOKUYO& Partners Co., Ltd.
KOKUYO Vietnam Co., Ltd., KOKUYO Malaysia Sdn.
Bhd., KOKUYO (Shanghai) Management Co., Ltd.,KOKUYO Commerce (Shanghai) Co., Ltd., KOKUYOFurniture (China) Co., Ltd., KOKUYO Design
Consultants (Shanghai) Co., Ltd., KOKUYOInternational Asia Co., Ltd., KOKUYO International(Malaysia) Sdn Hbd, KOKUYO Vietnam TRADING
Co., Ltd., Kokuyo Camlin Limited

KOKUYO K Heart Co., Ltd., Heartland Co., Ltd.,IWAMI Paper Industry Co., Ltd., KOKUYO Hokkaido
Sales Co., Ltd., KOKUYO Tohoku Sales Co., Ltd.,KOKUYO Kitakanto Sales Co., Ltd., KOKUYO Tokai
Sales Co., Ltd., KOKUYO Hokuriku-Niigata Sales
Co., Ltd., KOKUYO Sanyo-Shikoku Sales Co., Ltd.

KOKUYO-IK (Thailand) Co., Ltd.

Scope of Report: KOKUYO Co., Ltd., 20 consolidated subsidiaries, and 10 affiliates- 101 ENVIRONMENTAL PERFORMANCE DATA

2022 Results

Goals and Results for 2022
Environmental Policy
Goal

Result

Goal
met?

Reduction of CO 2 emissions
Total year-on-year change in volume: +5.1%(when production is excluded: -2.0%)-0.0%(reduction efforts reduced emissions by
1.9%)

No

Reduction of unit energy consumption Year-on-year
reduction: -1.0%

Per unit of sales: +8.2%

No

Resource Conservation
and Recycling

Improve recycling rate in relation to total waste
volume•Business offices: 97.4% and over•Construction sites: 82.0% and overBusiness offices: 95.9%

NoConstruction sites: 82.3%

Yes

Procurement,
development, andprovision of ecofriendly products

Maintain eco x zero

Maintained

Yes

Information disclosureand communication

Publication of CSR report 2022

Publication of CSR report 2022

Yes

ISO 14001: Regular inspection in 2015

Regular inspection results•Strong point: 0 cases•Good points: 10 cases•Matters pointed out for improvement:
0 cases•Opportunities for improvement: 28
cases

Yes

Prevention of global
warming*Domestic consolidated
subsidiaries, Kokuyo K
Heart, Heartland

Environmental
management

Environmental Friendliness Efficiency Indicators
Kokuyo Group designates unique environmental friendliness efficiency indicators as indices to comprehensively evaluate financial
performance and impact on the global environment.
These indicators show the extent to which products and services are being offered to society with respect to specific environmentalload and correspond to the following four items.
1. CO 2 emissions
2. Final waste disposal
3. Usage of chemical substances subject to PRTR regulations
4. Water usage
Using fiscal 2000 as the baseline for each indicator, the progress status for eachfiscal year can be determined.
Environmental Friendliness Efficiency Indicators- 102 ENVIRONMENTAL PERFORMANCE DATA

* “Chemical substances” indicates the volume of Class 1 PRTR substances handled by reporting sites that are required to report the data under PRTR regulations.

JEPIX
The Japan Environmental Policy Priorities Index (JEPIX) is a method of quantifying theindividual amount of different types of environmental loads, such as greenhouse gas emissions
and air pollutants, as single indicators called Environmental Impact Points (EIP). The EIP is
calculated by multiplying the environmental load of each environmentally harmful chemical by
the integrated coefficient, which is calculated from the ratio between Japan’s environmental
policy target and the actual amount of emissions (environmental friendliness factor), and thenobtaining the sum total of them all.
JEPIX

- 103 ENVIRONMENTAL PERFORMANCE DATAGlobal Warming Preventive Measures (Material issue 3: Respond to the climate
crisis)Attainment of 2024 goal
Domestic consolidated subsidiaries, Kokuyo K Heart, Heartland
CO2 Emission Transition* The graph excludes greenhouse gas emissions from sources other than electric power as such emissions were negligible (accounting for less than 0.1% of total emissions).
* Electricity-based emission factors are calculated using the basic emission factors of the relevant electrical power companies for each given year
* Results for 2020 and later are disclosed based on a market-based approach.

Scope 1 and 2 Emissions
Kokuyo, 20 consolidated subsidiaries (domestic and overseas), 10 affiliates (domestic and overseas)
CO2 emission transitions

CO2 emission by source* Market-based* Market-based* In line with the GHG Protocol’s Scope 2 Guidance, we take the market-based
approach (which reflects supplier-specific emissions factors associated with our energy
purchases).
* Differences due to changes in emission factors are calculated using the average
emission factors of all power sources in 2000 (0.378kg-CO2/kwh).

CO2 emission by source

CO2 emission by country- 104 ENVIRONMENTAL PERFORMANCE DATA

* Market-based* Location-based

Scope 3 categories and emissions

Reason for Nonapplicability

Scope 3Emissions

As Percentage
of Total

As Percentage
of Total
EmissionsCategory

Applicable/
Not applicable

Category 1

Purchased products /services

Applicable-972,882

80.6%

78.1%

Category 2

Capital goods

Applicable-

19,026

1.6%

1.5%

Category 3

Fuel not included in Scope
1 or 2 and energy-related
activities

Applicable

-

6,276

0.5%

0.5%

Category 4

Shipping and delivery(upstream)

Applicable-

33.4362.8%

2.7%

Category 5

Waste materials generated
Applicableby businesses

-

3,870

0.3%

0.3%

Category 6

Business trips

Applicable

-

1,169

0.1%

0.1%

Category 7

Commuting by workers

Applicable

-

3,057

0.3%

0.2%

Category 8

Leased assets (upstream)

Not applicable

Category 9

Shipping and delivery(downstream)

Applicable

Included in Scope 1/2-

Kokuyo is amanufacturer ofcompleted products
and does not deal
with intermediate
products

-

127

0.0%

Processing of sold products Not applicable

Category 11

Use of sold products

Applicable-

71,4295.9%

5.7%

Category 12

Discarding of sold products Applicable-

94,5967.8%

7.6%

Category 13

Leased assets(downstream)

Applicable

-

303

0.0%

0.0%

Category 14

Franchises

Applicable

-

446

0.0%

0.0%

Category 15

Investments

Not applicable

Total

-

-

-

- 105 ENVIRONMENTAL PERFORMANCE DATA

-

0.0%

Category 10

No investments--

1,206,618

-

-

-

-

-

Greenhouse gases emitted by the supply chain

Greenhouse gases emitted by the supply chain(by scope) (Tons of CO2)

(for Scope 3)

Resource Saving and Recycling

Waste Materials: Recycling and Final Disposal Amounts

Waste Materials by Activity

Waste material types (Recycling rate in brackets)

Plastic waste generation (in Japan)

Emissions by Country- 106 ENVIRONMENTAL PERFORMANCE DATA

Water Resources

Water used, water recycled, water discharged

Water usage by location* Water recycled: Water recycled in factories* Water discharged: Wastewater discharged into public water bodies or sewers* The volume of water used and discharged increased in 2022 because the Indiansubsidiary was included in that year.

Water usage by country

Chemical Substances Subject to PRTR Law

Vol. Released
Official
No.

Chemical nameVol.
handled(kg)

Vol.
Released
into Air(kg)

Vol.
Released
into Public
Bodies ofWater (kg)Vol.
Released
into
Sewers
(kg)

Vol.
Vol.
Vol. Sent
Treated Consumed
Sub-total
to Landfill
(kg)
(kg)
(kg)
(kg)

1

Zinc compounds(water-soluble)

201.9

0.0

0.0

0.0

201.9

201.9

0.0

0.0

20

2-aminoethanol

165.2

0.0

0.0

0.0

165.2

165.2

0.0

0.0

30

Linear Alkyl
Benzene Sulfonic
Acid and its salts
(LAS)

195.0

0.0

0.0

0.0

195.0

195.0

0.0

0.0

53

Ethylbenzene

15.4

15.4

0.0

0.0

0.0

15.4

0.0

0.0

57

Ethylene glycol
monoethyl ether

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

- 107 ENVIRONMENTAL PERFORMANCE DATA

Vol. Released
Official
No.

Chemical nameVol.
handled(kg)

Vol.
Released
into Air(kg)

Vol.
Released
into Public
Bodies ofWater (kg)Vol.
Released
into
Sewers
(kg)

Vol.
Vol.
Vol. Sent
Treated Consumed
Sub-total
to Landfill
(kg)
(kg)
(kg)
(kg)

9,030.0

0.0

0.0

0.0

0.0

0.0

0.0

9,030.071

Ferric chloride

80

Xylene

21.3

21.3

0.0

0.0

0.0

21.3

0.0

0.0

82

Silver and its watersoluble compounds

1.0

0.0

0.0

0.0

0.0

0.0

1.0

0.0

125

Chlorobenzene

16.1

10.1

0.0

0.0

0.4

10.5

0.0

5.6

134

Vinyl acetate

216.7

21.7

3.5

1.8

13.1

40.1

0.0

176.5

235

Water-soluble saltsof bromic acid

505.9

0.0

0.0

0.0

0.0

0.0

505.9

0.0

300

Toluene

81.2

17.8

0.0

0.0

4.4

22.2

0.0

59.0

302

Naphthalene

12.5

0.0

0.0

0.0

0.3

0.3

0.0

12.2

306

Hexamethylene
diacrylate

455.3

0.0

0.0

0.0

23.7

23.7

0.0

431.7

309

Nickel compounds

16.8

0.0

0.0

0.0

0.0

0.0

16.8

0.0

354

Di-n-butyl phthalate

82.0

0.0

0.0

0.0

4.1

4.1

0.0

77.9

392

N-hexane

178.7

178.7

0.0

0.0

0.0

178.7

0.0

0.0

403

Benzophenone

63.1

0.0

0.0

0.0

3.3

3.3

0.0

59.8

407

Poly(oxyethylene)
alkyl ether

682.0

0.0

0.0

14.4

398.9

413.3

1.9

266.8

410

Poly(oxyethylene)
nonylphenyl ether

9.0

0.0

0.0

0.0

0.5

0.5

0.0

8.5

412

Manganese and its
compounds

17.8

0.8

0.0

0.0

6.3

7.1

0.0

10.7

448

Methylenebis(4,1cyclohexylene)
diisocyanate

438.1

0.0

0.0

0.0

0.0

0.0

0.0

438.1

453

Molybdenum and its
compounds

204.6

0.0

0.0

0.0

0.0

0.0

0.0

204.6

12,609.6

265.8

3.5

16.3

1,017.0

1,302.6

525.6

10,781.4

Total* The volume of PRTR Law Class I Designated Chemical Substances that were used, handled, released, transferred, disposed, recycled, and consumed by the business establishments(in Japan) subject to notification under the PRTR Law. For the calculation methods, see the Ministry of the Environment/Ministry of Economy, Trade and Industry’s PRTR Release
Estimation Methods Manual, version 4.2 (March 2019).
* “Volume treated” refers to those PRTR designated substances that were treated on site by incineration, neutralization, breaking down, reactive process, etc.
* “Volume consumed” refers to the volume of substances that were removed from the site by the removal of the products containing or accompanying them or that were modified for
disposal by means of chemical reaction with other substances.

Environmental Load Material Flow

- 108 ENVIRONMENTAL PERFORMANCE DATA

- 109 ENVIRONMENTAL PERFORMANCE DATA

Logistics(contracted
goods
transportation)

Distribution(storage,deliveries)

Planning,
R&D

Sales,
services

Manufacturing

Energy (GJ)

63,635

537,693

74,171

112,739

Water (km 3 )

17

218

6

29

Total volumetransported (Mt)

Inputs317,905

202.0

Substance inputs (t)89,377

Paper (t)54,389

Metals (t)15,177Resins (t)3,723Wood (t)1,741Cloth (t)174

Chemical products (t)10,378Other (t)3,795

Total volume sold (kt ×
10)

22.0

Packaging (t)Recycling

10,322

Water recycled infactories (m 3 )CO 2 emissions fromelectrical power (tCO 2 )

4,957

2,693

27,272

GHG emissions fromsources other thanelectrical power(tCO 2 e)

3,668

5,159

19,547

15.6

SO x (t)-NO x (t)Outputs

Total

0.13

Waste (t)787

10,620398

8,318

Wastewater (km 3 )

17

125

6

29

Discharges to public
water bodies (km 3 )40

COD (kg)201

BOD (kg)

62

Used products
collected (t)2,474Used products reused
(t)

176

- 110 ENVIRONMENTAL PERFORMANCE DATA

Input items
Indicator

Unit

Calculation method

Volume of energy
used

GJ

Power, gas (city gas, LPG, natural gas), oil (gasoline, light oil, kerosene, fuel oil A), heat (hot water,
cold water) The power unit calorific values are the daytime and nighttime power values stated in the
Enforcement Regulations of the Act on the Rational Use of Energy (effective from April 1, 2008). The
unit calorific values of gas, oil, and heat are those values presented in the Greenhouse Gas Emission
Calculation and Reporting Manual, Ver. 4.8 (Jan 2022, Ministry of the Environment, Ministry of
Economy, Trade and Industry).

Water

km 3

Tap water, water for industrial use

Substance Inputt

The volume of raw materials used to manufacture Kokuyo products

Overall Sales
Volumekt × 10

Data from furniture and stationery productsContainer andPackaging
Materialst

The volume of packaging materials used to package products

Output Items
Indicator

Unit

Calculation method

t-CO 2CO 2 emissions from the use of electricity, gas, oil, and heat (see Global Warming Preventive
Measures: Respond to the climate crisis) Coefficients based on the Act on Promotion of Global
Warming Countermeasures (adjusted emission coefficients for each power company for fiscal 2019and 2020) were used to calculate the CO 2 emissions from power consumption in Japan. For power
consumption overseas, we use the local emissions factors listed in IEA Emissions Factors 2022. Values
presented in the Greenhouse Gas Emission Calculation and Reporting Manual, Ver. 4.8 (Jan 2022)(Ministry of the Environment, Ministry of Economy, Trade and Industry) were used to calculate CO 2
emissions from the use of gas, oil, and heat. The ton/kilo method and the fuel consumption method
were both used to calculate the distribution (consigned transportation) CO 2 emissions.

Other Greenhouse
Gases

t-CO 2 e

Emissions of greenhouse gases (CO 2 , CH 4 , N 2 O) related to production activities, (in Japan), but
excluding such emissions from energy sources, have been converted to a CO 2 basis. Emission
coefficient values were taken from the Ministry of the Environment and the Ministry of Economy, Tradeand Industry's Greenhouse Gas Emission Calculation and Reporting Manual, Ver. 4.8 (Jan 2022).

SO 2 ">x, NO 2 ">xtEmissions from smoke - and soot-producing facilities at manufacturing plants (in Japan)t

The volume of discharged waste (emissions) is the total amount of waste and valuable substancesdischarged from business establishments. The recycle volume is the total of the volume of discharged
waste (emissions) that has been recycled through material or thermal recycling, and the volume ofvaluable substances. The final waste volume is the combined total of the recycling residue and thevolume of waste directly disposed of in landfills, out of the total volume of discharged waste (solid

CO 2 Emissions
from Energy Use

Waste

waste) ( see Resource Saving and Recycling: Contribute toward a circular economy ). If industrial waste
has been calculated by cubic measurement, conversion factors (reference) for converting cubic
measurements of industrial waste into weights as stated in a notice released by the Ministry of theEnvironment (December 27, 2006; Env. Ind. Waste Issue No. 061227006) were used.
Wastewater

km 3

Wastewater discharged to areas of water for public use and into the sewage system

COD, BODkg

Of plants in Japan, the volume of effluent discharged to areas of water for public use by plants with alegal obligation to measure water quality

Other items
Indicator
OverallTransportation
VolumeUnit

tkm

Calculation method
The total of the following outsourced transportation volumes: total domestic transportation in Japan
including the transportation of furniture products, store fixtures, stationery products, transportation of
catalog sales by Kaunet, and transportation of Actus products; and transportation of products between
overseas sites and within Malaysia.
- 111 ENVIRONMENTAL PERFORMANCE DATA

Indicator

Unit

Calculation method

Cyclical Water Use
at Plants

m3

The volume of water used in a cyclical way (i.e. recycled) on business premises

Cyclical Resource
Use on Sitestt

The volume of recycled resources, such as packaging materials, on the business premises of Kokuyo
Logitem and Kokuyo Supply Logistics.

Collected Used
Productst

The volume of used products collected from customers by Kokuyo Logitem.

Re-use of Used
Productst

The volume of re -used products from the used products collected from customers by Kokuyo Logitem.

Environmental Accounting
Environmental Accounting (Unit: Multiple of 10 thousand yen)

Environment-related
Investments

Item

Costs

Effects

2020

2021

2022

2020

2021

2022

0

690

0

3,963

1,532

1,778

11,842

10,785

7,491

8,363

8,200

2,481

Resource saving andrecycling

00042,117 54,265 50,736

Procurement andprovision of ecofriendly products

0

0

0

3,181

3,583

4,980

0

0

0

3,181

3,583

4,980

Survey and research
into environmental
technology

0

0

0

184

160

148

0

0

0

184

160

148

Environmental
communication

0

0

0

1,442

1,623

3,547

0

0

0

1,442

1,623

3,547

Setting up
management
structures

0

0

0

5,881

6,369

9,244

0

0

0

5,851

6,369

9,244

Environmental
damage response

0

0

0

0

0

0

0

0

0

0

0

0

11,842

11,475

Pollution prevention
Global warming
prevention

Total

7,491 65,100 75,732 72,915

2020

Total

2021

2020

2021

2022

3,963

1,532

1,778

▲1,923 ▲2,160 ▲1,603 6,440 6,040

878

0

2022
0

0

▲15,315 ▲24,564 ▲26,213 26,802 29,701 24,523▲17,237 ▲26,723 ▲27,817 47,863 49,009 45,098

Breakdown of economic effects
Item

Content of countermeasures
Effects of introducing energy-saving facilities

Global warming prevention

Effects of solar power generation
Effects of improving operations- 112 ENVIRONMENTAL PERFORMANCE DATA

2020

2021

▲703
▲1,009▲211▲1,124
▲978
▲58

2022

▲633
▲936
▲34

Item

Content of countermeasures

2020

2022

▲15,313 ▲24,561 ▲26,213▲2▲2
0

Proceeds from garbage sorting and recycling
Resource saving and recycling

2021

Waste Reduction
Cost reductions achieved through the promotion of recycling

0▲17,237 ▲26,723 ▲27,817

Total

Sites with ISO 14001 Certification

No.

Company
Name

Site Name
Head Office (including XT andWS)

1Company
Name

No.
40

2

KaunetTokyo Shinagawa Office

Tokyo Shinagawa Office42

3

Tokyo Shinagawa SST Office
Kokuyo5

KokuyoMarketing

Head Office

43

Tachikawa Office44

Chiba Office45

Saitama Office46

Yokohama Office47

Nagano Office48

Matsumoto Office49

Nagoya Office50

Shizuoka Office

51

Umeda Office

52

Kyoto Office

Tokyo Kasumigaseki Office
Nagoya Office6

Osaka Umeda Office7

Mie Factory

89Site Name
Head Office41

4

Shibayama Factory
Kokuyo K Heart

10

Head Office
Tottori Factory

Kokuyo MVP
11

Aoya Factory

12

Kokuyo Product
Shiga

Head Office

13

Kokuyo Logitem

Head Office

53

Kobe Office

14

Sapporo Distribution Center

54

Wakayama Office15

Sendai Distribution Center

55

Hiroshima Office16

Gunma Distribution Center

56

Yamaguchi Office

17

Central Japan Delivery andDistribution Center

57

Matsue Office

58

Fukuoka Office59

Nagasaki Office60

Miyazaki Office

61

Kagoshima Office

62

Kumamoto Office

63

Oita Office

18
19
20
21
22

0

Central Japan Delivery Center
Shin Chiba Distribution Center
Shiga Distribution Center
Mie Distribution Center
Ina Distribution Center- 113 ENVIRONMENTAL PERFORMANCE DATA

No.

Company
Name

Site Name
Chubu Delivery andDistribution Center

23
24

Toyama Distribution Center

25

Fujiwara Distribution Center

26

Komono Distribution Center

Company
Name

No.
64

Site Name
Okinawa Office

65

Kokuyo(Malaysia)

Head Office

66

Kokuyo-IK
ThailandHead Office

67

Patalganga Plant

27

Kansai Delivery andDistribution Center

68

28

Okayama Distribution Center

69

Samba Plant

29

Kyushu Distribution Center

70

Head Office30

Head Office71

31

Sapporo Distribution Center

72

32

Ibaraki Distribution Center

33

Metropolitan Area Integrated
Distribution Center

34

Kyushu Integrated Distribution
Center35

Kokuyo Supply
Logistics

Kokuyo Camlin

KokuyoCommere(Shanghai)

Chubu Integrated Distribution
Center36

Shiga National Distribution
Center37

Kinki Integrated Distribution
Center38

Osaka Nanko Distribution
Center39

Fukuoka Distribution Center- 114 ENVIRONMENTAL PERFORMANCE DATA

Tarapur Plant

Beijing OfficeShenzhen OfficeKOKUYO (MIE PLANT)LOCATION

2012 Nishitawara, Nabari-shi, Mie

PRINCIPAL PRODUCTS

Steel desks, low partitions, etc.

COMMENCEMENT OF OPERATIONS

May 1993

SITE AREA

145,977m 2

Inputs2020
95,839102,694

100,880

Fuel

38,137

40,83639,532

Electricity

57,702

61,85861,348City/well water

61,71862,87364,067

Water resources
m3
Outputs

2020
CO 2

Waste emissions

2021

-

4,310
-

NO x

0.37

0.3

0.13

Total waste volume

1,196

1,337

1,265

Reuse/heat recovery

1,194

1,334

1,261

3

3

3

Volume of effluent

28,41630,46731,097

Emissions into public
water areas

28,41630,46731,097

Emissions into sewage
systems
Hydrogen ion
concentration (PH)Restricted items
emitted into bodies
of water

4,621-

Final disposal

Emissions into bodies
of water m 3

2022

4,410

SO x

t

2022

Volume of energy inputs
Energy (GJ)

Atmosphericemissions t

2021

-

-

7.4

7.9

-

7.6

8.1

7.6

8.0

COD(mg/L)

13

11.3

8.6

BOD(mg/L)

2

4.1

2.4

SS(mg/L)

2.0

2.7

2.3

- 115 REPORTS ON BUSINESS SITES IN JAPANKOKUYO PRODUCT SHIGALOCATION

312 Kamigano, Aisho-cho, Echi-gun, Shiga

PRINCIPAL PRODUCTS

Notebooks, plain paper copy paper, carbon
duplication books, loose -leaf supplies, etc.

COMMENCEMENT OF OPERATIONS

October 1980
114,294m 2

SITE AREA

Inputs2020

2021

Volume of energy inputs

50,171

52,35152,931

Fuel

1,003

1,022

1,010

Electricity

49,16751,32851,921

City/well water

4,741

4,230

4,796

Energy (GJ)

Water resources
m3
Outputs

2020

2021

CO 2
Atmosphericemissions t

Waste emissions

t

1,757

1,894

1,751

-

-

-

NO x

-

-

-

Total waste volume

2,215

2,155

2,177

Reuse/heat recovery

2,215

2,149

2,177

0

6

6

4,633

4,174

4,708

Volume of effluent
Emissions into public
water areas
Emissions into sewage
systems
Hydrogen ion
concentration (PH)Restricted items
emitted into bodies
of water

2022

SO x

Final disposal

Emissions into bodies
of water m 3

2022

-

-

-

4,633

6.6

9.1

4,174

6.9

8.9

4,708

7.0

7.9

COD(mg/L)

5.7

5.1

4.4

BOD(mg/L)

8.6

13.0

6.9

SS(mg/L)

2.9

46

4.6

- 116 REPORTS ON BUSINESS SITES IN JAPANKOKUYO MVP (AOYA FACTORY)LOCATION

1114 Aoya, Aoya-cho, Tottori-shi, Tottori

PRINCIPAL PRODUCTS

Custom made stationery
September 2007
(Predecessor company, KOKUYO Office
Supplies Industrial, Aoya Factory, began
operations in April 2000)

COMMENCEMENT OF OPERATIONS

34,607m 2

SITE AREA

Inputs2020
12,395

14,52315,022

Fuel

532

979

900

Electricity

11,863

13,544

14,122

City/well water

4,724

4,327

1,201

Water resources
m3
Outputs

2020
CO 2

Waste emissionst

Emissions into bodies
of water m 3

Restricted items
emitted into bodies
of water

2022

Volume of energy inputs
Energy (GJ)

Atmosphericemissions t

2021

2021
719

2022
791

816

SO x

-

-

-

NO x

-

-

-

Total waste volume

380

438

424

Reuse/heat recovery

379

437

423

Final disposal

1

1

1

Volume of effluent

4,724

4,327

1,201

Emissions into public
water areas

4,724

4,327

1,201

Emissions into sewage
systems---

Hydrogen ion
concentration (PH)Not subject to regulation

Not subject to regulation

Not subject to regulation

COD(mg/L)

Not subject to regulation

Not subject to regulation

Not subject to regulation

BOD(mg/L)

Not subject to regulation

Not subject to regulation

Not subject to regulationSS(mg/L)

Not subject to regulation

Not subject to regulation

Not subject to regulation- 117 REPORTS ON BUSINESS SITES IN JAPANIWAMI PAPER INDUSTRY CO., LTD. (ATO FACTORY
LOCATION

586-3 Atotokusa, Yamaguchi-shi, Yamaguchi
Resume form, manuscript paper, slip pad,report paper, etc.

PRINCIPAL PRODUCTS
COMMENCEMENT OF OPERATIONS

April 1991

SITE AREA

28,297m 2

Inputs2020

2021

Volume of energy inputs

7,597

9,266

7,223

Fuel

169

1,988

212

Electricity

7,428

7,279

7,011

City/well water

718

704

631

Energy (GJ)

Water resources
m3
Outputs

2020

2021

CO 2
Atmosphericemissions t

Waste emissionst

Emissions into bodies
of water m 3

2022

290

520

384

SO x

-

-

-

NO x

-

-

-

Total waste volume

311

272

294

Reuse/heat recovery

311

272

284

Final disposal

0

0

9

Volume of effluent

718

704

631

Emissions into public
water areas

718

704

631

Emissions into sewage
systems
Hydrogen ion
concentration (PH)Restricted items
emitted into bodies
of water

2022

-

-

6.8

7.6

-

6.5

7.9

6.5

7.9

COD(mg/L)

Not subject to regulation

Not subject to regulation

Not subject to regulation

BOD(mg/L)

Not subject to regulation

Not subject to regulation

Not subject to regulationSS(mg/L)

Not subject to regulation

Not subject to regulation

Not subject to regulation- 118 REPORTS ON BUSINESS SITES IN JAPANKOKUYO (SHIBAYAMA PLANT)LOCATION

3155-4 Ohdai, Shibayama-machi, Sanbugun, Chiba

PRINCIPAL PRODUCTS

Room dividers, low partitions, cabinets, etc.

COMMENCEMENT OF OPERATIONS

June 1994

SITE AREA

73,734m 2

Inputs2020
106,889

116,567

120,133

Fuel

51,97859,51861,458

Electricity

54,911

57,04958,675City/well water

13,192

15,065

15,336

Water resources
m3
Outputs

2020
CO 2

Waste emissionst

Restricted items
emitted into bodies
of water

2021
5,155

2022
5,572

5,767

SO x

-

-

-

NO x

-

-

-

Total waste volume

2,315

2,222

2,107

Reuse/heat recovery

2,315

2,222

2,091

0

0

16

Volume of effluent

8,755

10,156

10,428Emissions into public
water areas

3,631

4,945

5,089

Emissions into sewage
systems

5,124

5,211

5,339

Hydrogen ion
concentration (PH)

7.7

7.4

7.3

COD(mg/L)

1.2

2.8

1.8

BOD(mg/L)

0.0

1.4

1.6

SS(mg/L)

0.0

0.7

0.5

Final disposal

Emissions into bodies
of water m 3

2022

Volume of energy inputs
Energy (GJ)

Atmosphericemissions t

2021- 119 REPORTS ON BUSINESS SITES IN JAPANKOKUYO MVP (TOTTORI FACTORY)LOCATION

2-201 Minami, Koyama-cho,Tottori-shi, Tottori

PRINCIPAL PRODUCTS

Custom-made stationery
September 2007
(Predecessor company, KOKUYO Office
Supplies Industrial, began operations in
December 1962)

COMMENCEMENT OF OPERATIONS

38,389m 2

SITE AREA

Inputs2020

Volume of energy inputs
Energy (GJ)

21,632

27,886

542

206

216

Electricity

14,677

21,426

27,670City/well water

6,989

2,924

2,331

Outputs

2020
CO 2

Atmosphericemissions t

Waste emissions

t

2022
1,170

1,507

SO x

-

-

-

NO x

-

-

-

Total waste volume

926

942

966

Reuse/heat recovery

911

926

953

Final disposal

15

15

13

6,989

2,924

2,331

Emissions into public
water areas
Emissions into sewage
systems

Restricted items
emitted into bodies
of water

2021
889

Volume of effluent
Emissions into bodies
of water m 3

2022

15,220

Fuel

Water resources
m3

2021

-

-

-

6,989

2,924

2,331

Hydrogen ion
concentration (PH)Not subject to regulation

Not subject to regulation

Not subject to regulation

COD(mg/L)

Not subject to regulation

Not subject to regulation

Not subject to regulation

BOD(mg/L)

Not subject to regulation

Not subject to regulation

Not subject to regulationSS(mg/L)

Not subject to regulation

Not subject to regulation

Not subject to regulation- 120 REPORTS ON BUSINESS SITES IN JAPANIWAMI PAPER INDUSTRY CO., LTD. (HEADQUARTERS
FACTORYLOCATION

I-378 Ushiroda, Tsuwano-cho, Kanoashi-gun,Shimane

PRINCIPAL PRODUCTS

Letter paper, receipt, vocabulary notebook,memo pad, etc.

COMMENCEMENT OF OPERATIONS

October 1918
5,382m 2

SITE AREA

Inputs2020

2021

Volume of energy inputs

2,733

2,806

2,553

Fuel

374

282

390

Electricity

2,359

2,525

2,162

City/well water

398

496

422

Energy (GJ)

Water resources
m3
Outputs

2020

2021

CO 2
Atmosphericemissions t

Waste emissionst

Emissions into bodies
of water m 3

2022

159

133

120

SO x

-

-

-

NO x

-

-

-

Total waste volume

70

82

66

Reuse/heat recovery

70

82

66

Final disposal

0

0

0

Volume of effluent

398

496

422

Emissions into public
water areas--

Emissions into sewage
systems
Hydrogen ion
concentration (PH)Restricted items
emitted into bodies
of water

2022

-

398

6.0

496

8.4

6.9

8.4

422

6.0

8.4

COD(mg/L)

Not subject to regulation

Not subject to regulation

Not subject to regulation

BOD(mg/L)

Not subject to regulation

Not subject to regulation

Not subject to regulationSS(mg/L)

Not subject to regulation

Not subject to regulation

Not subject to regulation- 121 REPORTS ON BUSINESS SITES IN JAPANKOKUYO-IK (THAILAND)LOCATION

529 Moo 4 Bangpoo Industrial Estate Soi 8C,
T. Praksa, A. Muang, Samutprakam 10280
Thailand

PRINCIPAL PRODUCTS

Clear books (transparent document holders),
PP (plain paper) files, tape adhesives, etc.

COMMENCEMENT OF OPERATIONS

December 1996
12,679m 2

SITE AREA

Inputs2020
37,442

41,94544,798

Fuel

343

321

343

Electricity

37,09941,62444,454City/well water

14,73916,576

19,728Water resources
m3
Outputs

2020
CO 2

Waste emissions

t

2022
1,782

2,126

SO x

-

-

-

NO x

-

-

-

Total waste volume

382

303

317

Reuse/heat recovery

351

265

278

Final disposal

30

38

39

11,84013,262

15,782Emissions into public
water areas
Emissions into sewage
systems

Restricted items
emitted into bodies
of water

2021
1,943

Volume of effluent
Emissions into bodies
of water m 3

2022

Volume of energy inputs
Energy (GJ)

Atmosphericemissions t

2021

-

-

-

11,84013,262

15,782

Hydrogen ion
concentration (PH)

6.7

7.1

7.0

COD(mg/L)

225.9

102.6473.3

BOD(mg/L)

122.2

177.8

32.6

SS(mg/L)

8.5

10.0

13.8

- 122 REPORTS ON BUSINESS SITES OVERSEASKOKUYO VIETNAMLOCATION

Land Plot B2-B7, Nomura-Haiphong IZ, An
Duong Dist., Haiphong City,Vietnam

PRINCIPAL PRODUCTS

Notebooks, flat files, files for thick covers,
tack labels, etc.

COMMENCEMENT OF OPERATIONS

November 2006
51,544m 2

SITE AREA

Inputs2020

Volume of energy inputs
Energy (GJ)

29,485

24,795

421

575

629

Electricity

26,06528,91024,166

City/well water

10,740

9,569

8,668

Outputs

2020
CO 2

Atmosphericemissions t

Waste emissionst

Emissions into bodies
of water m 3

Restricted items
emitted into bodies
of water

2022

26,486

Fuel

Water resources
m3

2021

2021
967

2022
1,917

1,562

SO x

-

-

-

NO x

-

-

-

Total waste volume

761

1,006

784

Reuse/heat recovery

564

806

611

Final disposal

197

200

173

Volume of effluent

8,592

7,655

6,934

Emissions into public
water areas

-

-

-

Emissions into sewage
systems

8,592

7,655

6,934

Hydrogen ion
concentration (PH)

7.3

7.0

7.2

COD(mg/L)

316

188.5

134.5

BOD(mg/L)

157.0

71.5

65.4

SS(mg/L)

150.5

101.5

74.8

- 123 REPORTS ON BUSINESS SITES OVERSEASKOKUYO CAMLIN (TARAPUR FACTORY, INDIA)
LOCATION

MIDC Tarapur, Tal- Palghar, Dist- Thane, Pin401506

PRINCIPAL PRODUCTS

Art supplies, poster colors, crayons, lead formechanical pencils, etc.

COMMENCEMENT OF OPERATIONS

April 1974

SITE AREA

10,045m 2

Inputs2020
21,01820,53945,533

Fuel

542

286

790

Electricity

20,476

20,252

44,743

City/well water

20,263

17,901

23,874

Water resources
m3
Outputs

2020
CO 2

Waste emissions

t

2022
1,487

3,145

SO x

-

-

-

NO x

-

-

-

Total waste volume

105.1

45.2

85.0

Reuse/heat recovery

105.1

45.2

85.0

0

0

0

20,263

17,901

23,874

Volume of effluent

Restricted items
emitted into bodies
of water

2021
1,512

Final disposal

Emissions into bodies
of water m 3

2022

Volume of energy inputs
Energy (GJ)

Atmosphericemissions t

2021

Emissions into public
water areas

-

-

-

Emissions into sewage
systems

20,263

17,901

23,874

Hydrogen ion
concentration (PH)

6.52

7.72

7.37

COD(mg/L)

59.0

69.0

46.0

BOD(mg/L)

13.0

12.0

10.0

SS(mg/L)

38.0

2.0

23.0

- 124 REPORTS ON BUSINESS SITES OVERSEASKOKUYO CAMLIN (SAMBA FACTORY, INDIA)
Lane No. 9, Sidco, Phase - 1 I.G.C., Samba184 121

LOCATION
PRINCIPAL PRODUCTS

Art supplies

COMMENCEMENT OF OPERATIONSJanuary 2008
10,040m 2

SITE AREA

Inputs

2020
5,219

6,820

8,680

Fuel

516

579

752

Electricity

4,703

6,241

7,928

City/well water

2,563

6,977

10,259Water resources
m3
Outputs

2020
CO 2

Waste emissions

t

2022
492

600

SO x

-

-

-

NO x

-

-

-

Total waste volume

59.9

103.4

116.2

Reuse/heat recovery

59.9

103.4

116.2

0

0

0

2,563

6,977

10,259Volume of effluent

Restricted items
emitted into bodies
of water

2021
374

Final disposal

Emissions into bodies
of water m 3

2022

Volume of energy inputs
Energy (GJ)

Atmosphericemissions t

2021

Emissions into public
water areas

-

-

-

Emissions into sewage
systems

2,563

6,977

10,259Hydrogen ion
concentration (PH)

7.4

7.6

7.5

COD(mg/L)

88.0

48.0

104.0

BOD(mg/L)

17.0

8.0

23.0

SS(mg/L)

19.0

10.0

56.0

- 125 REPORTS ON BUSINESS SITES OVERSEASKOKUYO CAMLIN (PATALGANGA FACTORY, INDIA)
LOCATION

MIDC,Village -Chavane,Taluka-Panvel,DistRaigad-410 220,Maharashtra ,India

PRINCIPAL PRODUCTS

Writing instrument (Marker, pencil pen,correction pen, Gel pen, sketch pen) Ink,
crayonCOMMENCEMENT OF OPERATIONS

April 2017

SITE AREA

56,000m 2

Inputs2020
15,35023,227

26,224

Fuel

1,324

1,203

987

Electricity

14,02622,02525,237

City/well water

29,68835,57138,640

Water resources
m3
Outputs

2020
CO 2

Waste emissionst

Emissions into bodies
of water m 3

Restricted items
emitted into bodies
of water

2022

Volume of energy inputs
Energy (GJ)

Atmosphericemissions t

2021

2021
1,101

2022
1,678

1,812

SO x

-

-

-

NO x

-

-

-

Total waste volume

169

281.9

222.9

Reuse/heat recovery

169

281.7

222.3

Final disposal

0

0

0.626

Volume of effluent

0

0

0

Emissions into public
water areas

-

-

-

Emissions into sewage
systems---

Hydrogen ion
concentration (PH)

7.3

6.5

7.5

COD(mg/L)

8.0

32.0

120.0

BOD(mg/L)

2.0

8.0

32.0

SS(mg/L)

6.0

17.0

28.0

- 126 REPORTS ON BUSINESS SITES OVERSEASKOKUYO (MALAYSIA)
Lots 79 & 83, Persiaran Bunga Tanjung 1,
Senawang Industrial Park 70400 Seremban,
Negeri Sembilan Darul Khusus, Malaysia

LOCATION

PRINCIPAL PRODUCTS

Steel desks, low partitions, cabinets, etc.

COMMENCEMENT OF OPERATIONS

October 1999
58,000m 2

SITE AREA

Inputs2020
18,671

18,77818,958

Fuel

6,115

6,001

5,554

Electricity

12,555

12,777

13,404City/well water

10,9808,124

11,426

Water resources
m3
Outputs

2020
CO 2

Waste emissionst

Emissions into bodies
of water m 3

Restricted items
emitted into bodies
of water

2022

Volume of energy inputs
Energy (GJ)

Atmosphericemissions t

2021

2021
1,143

2022
1,164

1,170

SO x

-

-

-

NO x

-

-

-

Total waste volume

186

200

209

Reuse/heat recovery

131

164

165

Final disposal

55

36

45

Volume of effluent

2,166

2,156

3,217

Emissions into public
water areas

996

1,121

1,854

Emissions into sewage
systems

1,170

1,035

1,363

Hydrogen ion
concentration (PH)

7.1

7.7

8.0

COD(mg/L)

27.9

18.4

28.3

BOD(mg/L)

7.9

6.8

8.6

SS(mg/L)

6.4

8.5

9.8

- 127 REPORTS ON BUSINESS SITES OVERSEASKOKUYO COMMEREC (SHANGHAI) CO.,LTD SHANGHAIFACTORY
No.128 RenJie RD, FengXian District,
Shanghai,P.R,China 201402

LOCATION

Adhesive -bound notebooks, spiral notebooks,
twin-ring notebooks, report pads, etc.

PRINCIPAL PRODUCTS
COMMENCEMENT OF OPERATIONS

August 2012

SITE AREA

27,457.7m 2

Inputs2020

Volume of energy inputs
Energy (GJ)

16,864

16,197

480

511

283

Electricity

10,445

16,353

15,915City/well water

1,455

1,800

1,763

Outputs

2020
CO 2

Atmosphericemissions t

Waste emissionst

Emissions into bodies
of water m 3

2021
685

2022
1,055

1,000

SO x

-

-

-

NO x

-

-

-

Total waste volume

787

1,227

1,399

Reuse/heat recovery

760

1,193

1,364

Final disposal

28

34

34

Volume of effluent

1,313

1,620

1,587

Emissions into public
water areas
Emissions into sewage
systems

Restricted items
emitted into bodies
of water

2022

10,925

Fuel

Water resources
m3

2021

-

-

-

1,313

1,620

1,587

Hydrogen ion
concentration (PH)Not subject tomeasurement

Not subject tomeasurement

Not subject tomeasurement

COD(mg/L)

Not subject tomeasurement

Not subject tomeasurement

Not subject tomeasurement

BOD(mg/L)

Not subject tomeasurement

Not subject tomeasurement

Not subject tomeasurement

SS(mg/L)

Not subject tomeasurement

Not subject tomeasurement

Not subject tomeasurement- 128 REPORTS ON BUSINESS SITES OVERSEAS

Mapping to other guidelines
Mapping to GRI Standards
Below we have mapped our sustainability information to the 2016 GRI Standards for sustainability reporting.

Index

Core

Disclosure

GRI Standard

Relevant page

General Disclosures
GRI 102: General disclosures102-1

Name of the organization

Corporate Data

102-2

Activities, brands, products, and services

Business Overview

102-3

Location of headquarters

Corporate Data

102-4

Location of operations

Affiliated Companies (Japanese Only)

102-5

Ownership and legal form

Corporate Data

102-6

Markets served

Business Domains
Corporate Data
Affiliated Companies (Japanese Only)

1.Organizational
profile102-7

Scale of the organization
Earnings Highlights
Financial Position

102-8

Information on employees and other workers

Databank Society

102-9

Supply chain

Working with Supply Chain Partners

102-10Significant changes to the organization and its
supply chain

102-11

Precautionary Principle or approach102-12External initiatives

102-13

Membership of associations

102-14

Statement from senior decision-maker

Employee Safety
Risk Management
Awards and Accolades

Message from the President
Page 13 of our latest annual securities

2.Strategy
102-15Key impacts, risks, and opportunities

report (827 kb) (Japanese Only)
Business and other risks- 129 MAPPING TO OTHER GUIDELINES

IndexCore

Disclosure

GRI Standard

Relevant page
Corporate philosophy

102-16
3.Ethics andintegrity

4.GovernanceValues, principles, standards, and norms of
behavior

Sustainable Business Strategy
KOKUYO Group Code of Conduct102-17

Mechanisms for advice and concerns about
ethicsPage 31 of our latest annual securities

102-18Governance structure

Corporate Governance102-19Delegating authority

102-20Executive -level responsibility for economic,
environmental, and social topics

102-21

Consulting stakeholders on economic,
environmental, and social topics

102-22Composition of the highest governance bodyand its committees

Corporate Governance102-23Chair of the highest governance body

Corporate Governance102-24

Nominating and selecting the highest
governance body

Corporate Governance102-25

Conflicts of interest

Corporate Governance102-26

Role of highest governance body in setting
purpose, values, and strategy

102-27

Collective knowledge of highest governancebody

102-28

Evaluating the highest governance body's
performance102-29Identifying and managing economic,
environmental, and social impacts

Sustainable Business Strategy

102-30Effectiveness of risk management processes

Risk Management102-31

Review of economic, environmental, and social
topicsSustainable Business Strategy

102-32Highest governance body's role in sustainability
reporting

Sustainable Business Strategy

102-33

Communicating critical concerns

Risk Management102-34Nature and total number of critical concerns

102-35

Remuneration policies

Corporate Governance102-36

Process for determining remuneration

Corporate Governance102-37

Stakeholders’ involvement in remuneration

Corporate Governance102-38Annual total compensation ratio

102-39Percentage increase in annual totalcompensation ratio- 130 MAPPING TO OTHER GUIDELINES

report (827 kb) (Japanese Only)IndexCore

Disclosure

GRI Standard

102-40

List of stakeholder groups

102-41

Collective bargaining agreements

102-42

Identifying and selecting stakeholders

Relevant page
Stakeholder Engagement
Page 9 of our latest annual securities
report (827 kb) (Japanese Only)
Stakeholder Engagement
Stakeholder Engagement

5.Stakeholder
engagement

Dialogue with our Customers
102-43

Approach to stakeholder engagement

Employee Communication
Working with Supply Chain Partners
Social Contribution

6.Report

102-44

Key topics and concerns raised

102-45

Entities included in the consolidated financial
statements

102-46

Defining report content and topic Boundaries

102-47

List of material topics

102-48

Restatements of information

102-49Changes in reporting

102-50

Reporting period

Editorial Policy

102-51

Date of most recent report

Editorial Policy

102-52

Reporting cycle

Editorial Policy

102-53

Contact point for questions regarding the report102-54Claims of reporting in accordance with the GRI
Standards

102-55

GRI content index

102-56External assurance

103-1

Explanation of the material topic and its
Boundary

The 5 Materialities

103-2

The management approach and its components

Sustainable Business Strategy

103-3

Evaluation of the management approach

Sustainable Business Strategy

201-1

Direct economic value generated anddistributed

Earnings Highlights

Page 7 of our latest annual securities
report (827 kb) (Japanese Only)

The 5 Materialities

For questions regarding the report, please contact below. (Japanese)

Mapping to other guidelines
Environmental management, third-party verification

GRI 103: Management Approach

Material topics
GRI 200: Economic
GRI 201: Economic
Performance- 131 MAPPING TO OTHER GUIDELINES

IndexCore

Disclosure

GRI 204:
Procurement
Practices

GRI 205: Anticorruption

GRI 206: Anticompetitive
Behavior

Relevant page

201-2

Financial implications and other risks andopportunities due to climate change

201-3

Defined benefit plan obligations and otherretirement plans

201-4

Financial assistance received from government

202-1

Ratios of standard entry level wage by gendercompared to local minimum wage

202-2

Proportion of senior management hired from thelocal community

203-1

Infrastructure investments and services
supported

203-2

Significant indirect economic impacts

204-1

Proportion of spending on local suppliers

205-1

Operations assessed for risks related tocorruption

205-2

Communication and training about anticorruption policies and procedures

205-3

Confirmed incidents of corruption and actions
taken

206-1

Legal actions for anti-competitive behavior,anti-trust, and monopoly practices

207-1

Approach to tax

207-2

Tax governance, control, and risk management

207-3

Stakeholder engagement and management ofconcerns related to tax

207-4

Country-by-country reporting

301-1

Materials used by weight or volume

Databank Environmental

301-2

Recycled input materials used

Databank Environmental

301-3

Reclaimed products and their packaging
materials

302-1

Energy consumption within the organization

Databank Environmental

302-2

Energy consumption outside of the organization

Databank Environmental

302-3

Energy intensity

Databank Environmental

302-4

Reduction of energy consumption

Databank Environmental

302-5

Reductions in energy requirements of products
and services

GRI 202: Market
Presence

GRI 203: Indirect
Economic Impacts

GRI Standard

GRI 207: Tax

Climate Action
Page 83 of our latest annual securities report (827 kb) (Japanese Only)

GRI 300: Environment

GRI 301: Materials

GRI 302: Energy- 132 MAPPING TO OTHER GUIDELINES

IndexGRI 303: Water andeffluents

Core

Disclosure

GRI 305: Emissions

GRI 306: Effluentsand Waste

GRI 307:
Environmental
Compliance

GRI 308: Supplier
Environmental
Assessment

Relevant page303-1

Interactions with water as a shared resource

303-2

Management of water discharge -related
impacts

303-3

Water withdrawal

Reports by Business Sites

303-4

Water discharge

Reports by Business Sites

303-5

Water consumption

Reports by Business Sites

304-1

GRI 304:
Biodiversity

GRI Standard

Operational sites owned, leased, managed in,or adjacent to, protected areas and areas ofhigh biodiversity value outside protected areas

Yui no Mori (Japanese)
Contribute toward a society that coex
ists with nature

304-2

Significant impacts of activities, products, andservices on biodiversity

304-3

Habitats protected or restored

304-4

IUCN Red List species and national
conservation list species with habitats in areas
affected by operations

305-1

Direct (Scope 1) GHG emissions

Databank Environmental

305-2

Energy indirect (Scope 2) GHG emissions

Databank Environmental

305-3

Other indirect (Scope 3) GHG emissions

Databank Environmental

305-4

GHG emissions intensity

Databank Environmental

305-5

Reduction of GHG emissions

Databank Environmental

305-6

Emissions of ozone -depleting substances (ODS)

305-7

Nitrogen oxides (NOX), sulfur oxides (SOX),
and other significant air emissions

Databank Environmental

306-1

Water discharge by quality and destination

Reports by Business Sites

306-2

Waste by type and disposal method

Databank Environmental

306-3

Significant spills

306-4

Transport of hazardous waste

306-5

Water bodies affected by water discharges
and/or runoff

307-1

Non-compliance with environmental laws andregulations

308-1

New suppliers that were screened using
environmental criteria

308-2

Negative environmental impacts in the supply
chain and actions taken

GRI 400: Social- 133 MAPPING TO OTHER GUIDELINES

Yui no Mori (Japanese)

Legal Compliance and Pollution Prevention

IndexCore

Disclosure

GRI Standard

Relevant page401-1

New employee hires and employee turnover

401-2

Benefits provided to full-time employees thatare not provided to temporary or part-time
employees

401-3

Parental leave

402-1

Minimum notice periods regarding operationalchanges403-1

Occupational health and safety management
system403-2

Hazard identification, risk assessment, andincident investigation

403-3

Occupational health services

Employee Safety

403-4

Worker participation, consultation, andcommunication on occupational health andsafetyEmployee Safety

403-5

Worker training on occupational health andsafetyEmployee Safety

403-6

Promotion of worker health

Employee health403-7

Prevention and mitigation of occupational
health and safety impacts directly linked bybusiness relationships

Employee health403-8

Workers covered by an occupational healthand safety management system

Page 9 of our latest annual securities

403-9

Work-related injuries

Databank Society

403-10Work-related ill health404-1

Average hours of training per year per
employee

404-2

Programs for upgrading employee skills andtransition assistance programs

404-3

Percentage of employees receiving regularperformance and career development reviews

405-1

Diversity of governance bodies and employees

405-2

Ratio of basic salary and remuneration of
women to men

406-1

Incidents of discrimination and corrective
actions taken

GRI 407: Freedomof Association andCollective
Bargaining

407-1

Operations and suppliers in which the right tofreedom of association and collective
bargaining may be at risk

GRI 408: Child
Labor

408-1

Operations and suppliers at significant risk forincidents of child labor

GRI 401:
Employment

GRI 402:
Labor/Management
Relations

GRI 403:
Occupational
Health and Safety

GRI 404: Training
and Education

GRI 405: Diversity
and Equal
Opportunity
GRI 406: Nondiscrimination- 134 MAPPING TO OTHER GUIDELINES

Databank Society

Databank Society

Employee Safety
Employee Healthreport (827 kb) (Japanese Only)

Human Resources Management

Databank Society

Working with Supply Chain Partners

IndexCore

Disclosure

GRI Standard

Relevant page
Working with Supply Chain Partners

GRI 409: Forced orCompulsory Labor

409-1

Operations and suppliers at significant risk forincidents of forced or compulsory labor

GRI 410: Security
Practices

410-1

Security personnel trained in human rights
policies or procedures

GRI 411: Rights ofIndigenous Peoples

411-1

Incidents of violations involving rights ofindigenous peoples

412-1

Operations that have been subject to humanrights reviews or impact assessments

412-2

Employee training on human rights policies orprocedures

412-3

Significant investment agreements and contracts
that include human rights clauses or that
underwent human rights screening

413-1

Operations with local community engagement,
impact assessments, and development programs

413-2

Operations with significant actual and potential
negative impacts on local communities

414-1

New suppliers that were screened using social
criteria

414-2

Negative social impacts in the supply chain andactions taken

415-1

Political contributions

416-1

Assessment of the health and safety impacts ofproduct and service categories

416-2

Incidents of non-compliance concerning thehealth and safety impacts of products andservices

417-1

Requirements for product and service
information and labeling

417-2

Incidents of non-compliance concerning
product and service information and labeling

417-3

Incidents of non-compliance concerningmarketing communications

GRI 418: Customer
Privacy

418-1

Substantiated complaints concerning breachesof customer privacy and losses of customer
data

GRI 419:
Socioeconomic
Compliance419-1

Non-compliance with laws and regulations inthe social and economic area

GRI 412: Human
Rights Assessment

GRI 413: Local
Communities

GRI 414: SupplierSocial Assessment

GRI 415: Public
PolicyGRI 416: Customer
Health and Safety

GRI 417 Marketingand Labeling- 135 MAPPING TO OTHER GUIDELINES

Social Contribution

Working with Supply Chain Partners

Providing Peace of Mind and Safety to Customers

ISO 26000
Below, we have mapped disclosures to the ISO 26000 core subjects.

ISO 26000 Core
Subject

IssuesPage
Message from the President

Organizational
governance

Issue 1: Organizational governance

Sustainable Business Strategy
Corporate Governance
Sustainable Business Strategy

Human rights

Issue 1: Due diligence
Issue 2: Human rights risk situations
Issue 3: Avoidance of complicity
Issue 4: Resolving grievances
Issue 5: Discrimination and vulnerable groups
Issue 6: Civil and political rights
Issue 7: Economic, social and cultural rights
Issue 8: Fundamental principles and rights at work

KOKUYO Group Code of Conduct
Labor and Human Resources
Respect for Human Rights
Working with Supply Chain Partners
Databank Society
Sustainable Business Strategy
KOKUYO Group Code of Conduct

Labor practices

Issue 1: Employment and employment relationships
Issue 2: Conditions of work and social protection
Issue 3: Social dialogue
Issue 4: Health and safety at work
Issue 5: Human development and training in theworkplace

Labor and Human Resources
Improve Wellbeing
Respect for Human Rights
Working with Supply Chain Partners
Databank Society
Sustainability Business Strategy
KOKUYO Group Code of Conduct
Supply Chain Management
Environmental Management

Environment

Issue 1: Prevention of pollution
Issue 2: Sustainable resource use
Issue 3: Climate change mitigation and adaptation
Issue 4: Protection and restoration of the naturalenvironment

Climate Action
Contribute to circular economy
Legal Compliance and Pollution Prevention
Contribute toward a society that coexists with nature
Environmental Performance Data
Reports by Business Sites
Yui no Mori (Japanese)- 136 MAPPING TO OTHER GUIDELINES

Sustainable Business Strategy

Fair operating
practices

Issue 1: Anti-corruption
Issue 2: Responsible political involvement
Issue 3: Fair competition
Issue 4: Promoting social responsibility in the value
chain
Issue 5: Respect for property rights

Sustainability framework
KOKUYO Group Code of Conduct
Working with Supply Chain Partners
Compliance
Risk Management

Consumer issues

Issue 1: Fair marketing, factual, and unbiased
information and fair contractual practices
Issue 2: Protecting consumers’ health and safety
Issue 3: Sustainable consumption
Issue 4: Consumer service, support, and complaintand dispute resolution
Issue 5: Consumer data protection and privacy
Issue 6: Access to essential services
Issue 7: Education and awarenessSustainable Business Strategy
Providing Peace of Mind and Safety to Customers
Databank: Society Listening to Customers
Environmentally friendly products
Dialogue with our Customers
Sustainable Business Strategy
KOKUYO Group Code of Conduct

Community
involvement anddevelopment

Issue 1: Community involvement
Issue 2: Education and culture
Issue 3: Employment creation and skills development
Issue 4: Technology development and access
Issue 5: Wealth and income creation
Issue 6: Health
Issue 7: Social investment

Improve wellbeing
Human Resources Management
Social Contribution
Awards and Accolades
Contribute toward a Society that Coexists with Nature
Databank Society- 137 MAPPING TO OTHER GUIDELINES

Sustainability Policy, Guidelines
Basic Concepts
We have established a policy and guidelines to guide our efforts to incorporate sustainability into our business activities.

Sustainable Business Strategy
We established the Sustainable Business Strategy to bridge our long-term vision with our policy on stakeholder engagement.

KOKUYO Group Environmental Policy
Building a sustainable society will require the creation of a decarbonized and recycling-oriented society that can coexist with nature.
The KOKUYO Group Environmental Policy sets out specific actions to that end.

KOKUYO Group Code of Conduct
After we started expanding globally, it became apparent that we needed to define a set of common behavioral standards while giving
leeway to local differences, such as cultural differences, differences in values, and differences in legal interpretations. To that end, weestablished the KOKUYO Group Code of Conduct.

KOKUYO Group Safety and Health Basic Policy
KOKUYO believes that creation of a safe, secure and pleasant working environment, safety measures in times of disaster and othermeasures are the foundations for employees to work vigorously and demonstrate their full abilities. To that end, we established the
KOKUYO Group Safety and Health Basic Policy.

KOKUYO Health and Productivity Management Declaration
We support employee health and productivity on the belief that the key to employee well-being is to encourage employees to take aninterest in their health and engage positively at work. Our commitment is enshrined in the KOKUYO Health and Productivity
Management Declaration, which is aligned with the Sustainable Business Strategy.

Circular Business Guidelines
In 2022, we created the Circular Business Guidelines as an updated version of the eco-batsu initiative, which we have continued since2008. The guidelines are designed to support closed-loop recycling and reduce recycling speed by reinforcing efforts in use,collection, and recycling.

- 138 POLICY, GUIDELINESKOKUYO Group Sustainable Procurement Policy
The KOKUYO Group Sustainable Procurement Policy enshrines our commitment to ensuring that our procurement activities contributeto a sustainable planet and society. Under this policy, we communicate our belief in co-creation with empathy to our supply chain
partners, work to build mutual trust with them, and continue working with them to fulfill our collective social responsibility to support
development of society.

Sustainable Procurement Guidelines
To ensure that our supply chain contributes to a sustainable planet and society, we established the KOKUYO Group Procurement
Guidelines. Based on the Sustainable Procurement Policy, these guidelines clarify the requirements and expectations for both
KOKUYO and our suppliers.

Policy on Timber Procurement
In 2011, we released the Policy on Timber Procurement to enshrine our commitment to sustainable use of forest resources.

KOKUYO Quality Pledge
The KOKUYO Quality Pledge enshrines our commitment to quality. In line with this pledge, we will satisfy customers and earn their trust
by delivering products and services that enrich work, learning, and living. We will also manage risks effectively and ensure theaccuracy of information about our products and services.

- 139 POLICY, GUIDELINESEMPLOYEE COMMUNICATION

Employees

Employee Communication
Basic Concepts
We are aiming to foster an open and easy-to-communicate organizational culture in which it is possible to create value
through varied experimentation with members who have different values. The purpose of that is to be a company thatcreates new value by extracting the value of diversified human resources and solving social issues in 2030. We will
look to entrench a culture of experimentation where all employees respect each other and can easily access theinformation they need. It will also be one where value is produced through repeated trial and error in our third mediumterm plan, Field Expansion 2024. Our goal with that is to change the way of working at KOKUYO into one of hybrid
work and project-based work.

Systems
Employee Satisfaction Survey (stress check)
We conduct an annual stress check as required under law. By analyzing the responses, along with overtime data and interview data,
we identify issues. With this information, HR facilitates dialogues aimed at prompting self-led solutions.

Pulse Survey
We began a pulse survey to be able to rotate through the PDCA cycle at a high pace of once a month in KOKUYO Co., Ltd. andKaunet Co., Ltd. One purpose of the survey is to grasp the state of teams and workplaces and to then use it as the impetus fordiscussions between members and dialogue between superiors and subordinates. Another purpose of the survey is for management tograsp the state of sites and employees even more timely and accurately while taking various measures such as new ways of working
and initiatives to realize our long-term vision. We are aiming to foster an easy-to-communicate corporate culture in which employees
can think and talk with each other about the company on an equal footing regardless of their position through establishing a habit toalways be aware of the condition of their teams and organizations by continuing this survey every month.

- 140 STAKEHOLDER ENGAGEMENT

Initiatives in 2022
Employee Town Meetings
In May 2022, we published our first integrated report and unveiled our corporate
purpose: Presenting a tomorrow you can’t wait for. Since then, we’ve held a numberof employee town meetings for discussing the purpose with employees. During themeetings, employees discussed what the purpose means to them and how theyinterpret and apply it.

President’s AwardIn FY2020, we launched the President’s Award to honor initiatives that help build
KOKUYO’s value. In 2022, the second year of the program, the prestigious award
went to the project team behind seating for the Japan National Stadium The stadium
opened in January 2020 and seats up to 60 thousand spectators. For this new
stadium, the team developed and delivered Centura seats.* Centura uses a slim
form while making the user feel secure and comfortable. The seating features arange of randomly assigned colors, creating a warm, natural feeling, evoking
dappled sunlight filtering through forest trees. During what was the first in-person
ceremony for the award scheme, each team member received a glass medal andbouquet, modeled after the Olympic prizes, along with a card bearing a message
penned by President Hidekuni Kuroda. The winners were treated to a warm
applause, with smiles all around.
* This was a special delivery just for the stadium. The Centura model is not a regular model for sale.

In-house award program: Dynamism Challenge
A strategic priority in our previous medium-term plan (2019–2021) was to turbo-charge workplace productivity (“doubling the speedof operations through variety”). In 2019, we launched an initiative to help cultivate a workplace culture that rewards employees forthinking independently and taking the initiative. The initiative is titled Bottom Up, Top Pull (“bottom up” means frontline employees
raising concerns or suggesting ideas, and “top pull” means the management taking up these ideas). In 2022, the following two prizes
were awarded: Top-Pull Prize: This prize honors leaders who helped their team achieve growth or improve their performance. Entries
are nominated by others. Dynamism Prize: This prize honors individuals and teams who push the envelope with bold initiatives forturbo-charging workplace productivity. Entries are self-nominated or nominated by others. Prizes were awarded at a business unit andregional level. For the top prize, the corporate officers then picked one individual (or team) from among the organization as a whole.
The honored initiatives were then announced to employees in the company newsletter.

- 141 STAKEHOLDER ENGAGEMENTPROVIDING PEACE OF MIND AND SAFETY TO CUSTOMERS

Customers

Providing Peace of Mind and Safety to Customers
Basic policy
KOKUYO always develops new products and services from the perspectives of customers, and, without being satisfied
with the present conditions, we continue to improve the safety and quality of our entire product line and services.

KOKUYO Quality Pledge
We shall continually aim to delight and win the trust of customers by providing products and services that help people
work, play, and learn better.
1. We shall endeavor to develop products that exceed customer expectations in every way
2. We shall endeavor to ensure product safety and to raise the bar on product quality
3. We shall comply with legal requirements and fulfill our corporate social responsibility
4. We shall listen to customers and incorporate their feedback into the development cycle
5. We shall update our management system in response to changes in the business landscape

Quality Management System (QMS)- 142 STAKEHOLDER ENGAGEMENTManaging the quality assurance process
In accordance with our QMS, we manage and continually improve quality at each process: planning, design,
manufacturing, and distribution.

QA activities

In accordance with our QMS, a third-party audit and internal audit are conducted once a year.
We provide organized and sustained QA education (team leader training and programs for training, or
improving the skills of, QA auditors).
We inform employees about the QMS, improve its effectiveness, and improve motivation to engage in it(using our newsletter Online, webcasts, an award program, and issuing QMS badges).

Systems
Attainment of ISO 9001 (Quality Management System) Certification by All Companies
As of June 2019, all companies in our corporate group have attained ISO 9001:2015 (which specifies requirements for a quality
management system) and we have standardized the manufacturing (“craftsmanship process”) for our three main kinds of business:
office furniture, stationery, and Kaunet’s office supplies. Our quality management systems, as well as complying with the requirements- 143 STAKEHOLDER ENGAGEMENT

specified in ISO 9001:2015, are continually improved. In other words, we continually look for ways to make our workforce morequality consciousness and to improve customer satisfaction, believing that quality goes hand in hand with sustained business growth.

Registration certificate number: JQA-2029
Registered business: KOKUYO Co., Ltd.
Scope of registered activities:
Design, development and manufacture of office furniture
Purchase and sale of office furniture
Design, development, manufacture and construction of furniture used in public facilities
Design, development, manufacture and construction of building materials
Design and development of stationery products
Purchase and sale of stationery products
Planning, development, purchase and sale of products handled by Kaunet
Relevant business / production sites:
Furniture businesses: Head Office, Mie Plant, Shibayama Plant, Tokyo Shinagawa Office and Umeda Office
Stationery businesses: Head Office, Tokyo SST Office, Ibaraki Delivery Center, Shiga NDC and Osaka Nanko
Delivery Center
Kaunet Co., Ltd.: Tokyo Shinagawa SST Office* Current as of April 15, 2022

Quality Assurance for Stationery
In order to deliver quality that our customers can trust, we have taken steps to systematically build, operate and improve our systems
for quality assurance, covering planning, design, manufacturing, and distribution.

1 Continually improving quality assurance
To ensure that customers can use our products safely and securely, we continually improve our system for quality assurance by
updating the key processes (design review, safety review, production observation, chemical safety management, legal
compliance). We also perform risk assessments to identify and mitigate potential risks.
- 144 STAKEHOLDER ENGAGEMENT

2 Inspection and testing based on international standards
When testing and inspecting products, we apply international standards. We evaluate testing and inspection processes with a view
to improving the country-specific standards. Additionally, we endeavor to do more to catch defects before the product is sold tocustomers.
3 Responding to customer complaints quicker and more accurately
It is not enough for a product to be objectively safe; the customer must feel reassured that it is so. This is especially true in today’s
world, where people have a plethora of information at their fingertips. Accordingly, we need to respond all the quicker and all themore accurately to customer complaints. To that end, we have established clear and standardized protocols, tools, and criteria for
responding to such incidents. Such standardization streamlines the response process and minimizes inconsistencies in responses.
4 Testing for quality, testing for value
We have always performed thorough quality evaluations when updatingproducts or releasing new ones, and we recently introduced robotics to enhance
the reproducibility and accuracy of the testing. For a product to satisfy
customers, it must not only be reasonably priced and reliable; it must also havea wow-factor. We have started quantifying the extent to which a product has
this.

Robotics technology for quality testing

Quality Assurance for Furniture
Our furniture businesses attained ISO 9001 certification in 1997. Since then, we have standardized the marketing, planning, design,
production, and installation processes for furniture. We use a PDCA cycle to ensure that we always provide products and services thatare tailored to the changing ways in which people work, study, and live. We continually strive to improve our manufacturing, delivery,
and installation. We listen to feedback from customers and use this feedback to inform and guide our continual-improvement activities.
1 Setting high standards for craftsmanship
When developing a product, we assess safety and functionality using a variety of metrics. As well as measuring the productagainst the Japanese Industrial Standards and other industry standards, we measure it against our own standards, which are evenhigher and which we update annually.
2 Dealing with defects
When a customer finds a defect in one of our products, we inform the relevant
personnel without delay. As well as investigating the cause for the defect, we
make the necessary improvements in the product or manufacturing process toprevent a similar defect. If there is a serious safety issue, the Risk Compliance
Committee will determine the response. To limit the damage, we will notify therelevant authorities and issue notices on our website and in newspapers andother media to alert consumers.
KOKUYO corporate site- 145 STAKEHOLDER ENGAGEMENT

3 Public notices concerning safety or quality issues
We use our website to alert consumers about safety or quality issues with our products.

Quality Assurance for Kaunet’s Products
Kaunet has a huge lineup that includes stationery, office supplies, food and drink, home appliances, gifts, medical equipment, shop
equipment, order-made business cards and seals/stamps, and office furniture. The business has around a thousand suppliers. It also
has its own premium brand, Kaukore, which emphasizing workplace productivity. At least 5,200 products are sold under this brand.
Kaunet always strives to develop useful products based on ideas from the user’s perspective. To ensure that its products are safe andcommand confidence, Kaunet works together in the value chain to improve not only the quality of its goods but also the customer
service at call centers and delivery.
1. Kaukore, Kaunet’s premium series
When developing a product, we assess safety and functionality using a variety of metrics. As well as measuring the productagainst the Japanese Industrial Standards and other industry standards, we measure it against our own standards, which are evenhigher and which we update annually.

2. Hearing it straight from the customers: Monitor Kaunet
Kaunet operates Monitor Kaunet, a web community through which it interacts
with customers directly. Monitor Kaunet helps Kaunet understand the concernsand problems customers experience on a daily basis, providing inspiration for
product ideas.

3. A call center for hearing customer feedback on a daily basis
As well as Monitor Kaunet, Kaunet operates a call center. The feedback obtained over the phone leads to improvements to existingproducts and services as well as to new products. Kaunet shares the feedback throughout the entire company so that it can
improve its products and services.
4. Trustworthy delivery service
Customers can order Kaunet products on the company’s website or from its printed catalog. Goods are delivered on the same day
or on the following day at the latest. An assembly service is also available for bulky furniture and items that are tricky to assemble.
For this service, delivery staff trained in furniture assembly will assemble and install the item in the customer’s office or home andtake all the packaging away with them.

- 146 STAKEHOLDER ENGAGEMENT

Initiatives in 2022
QMS talent development
Through our QMS, we keep improving our processes to enhance customer satisfaction. To that end, we secure a steady stream of QA
talent. This task forms part of the senior leadership’s Quality Pledge. Every year, the business units’ QA offices organize training toprovide for the expected roles and ability levels.

Annual Training to Improve the Skills of the Members of the QMS Internal Audit TeamWe conduct internal audits every year in our quality management system (QMS) activities. The purpose of those audits is to evaluate
whether the QMS is producing results as intended. The members of the internal audit team appointed by the organization evaluate
whether products, services and the processes that produce those comply with the requirements in internal audits. If there is a problem,
the identified organization promptly strives to correct it. KOKUYO considers these internal audits to be a very important measures toenhance customer satisfaction. Accordingly, we provide skills-upgrading training every year so that members of the internal audit team
improve their skills to be able to conduct effective internal audits.

Regular team leader training
Team leaders are process owners (they are accountable for the process in question). To train up process owners, we organize anannual training program focusing on how to apply the QMS in organizational management. In group discussions, attendees deepen
their knowledge about the need for the QMS, the role of a team leader, effective strategies, and how they should support members.

- 147 STAKEHOLDER ENGAGEMENTDIALOGUE WITH OUR CUSTOMERS

Customers

Dialogue with Our Customers
Basic Concepts
We handle all customer inquiries thoroughly and sincerely. In addition, we take feedback as valuable opinions for
improving KOKUYO’s products and services, and make effort to share them across the entire company.

Systems
A System for Utilizing Feedback from Customers
Our Customer Support Center handles more than 200 inquires a day. We log the feedback onto an internal database called
VoiceDB. The feedback is then be shared throughout the organization (after removing all personally identifiable data), allowing
employees to identify ways to improve products and services at the planning and development stages. Every week, we use Slack, abusiness communication tool, to share the top picks from among the customer comments—both positive feedback and issues. This
practice leads to improvements in products and services.

- 148 STAKEHOLDER ENGAGEMENT

Product Improvement Example: Paper Cutter (Rotary Type)
Paper cutters (rotary types) require a tooth rest to catch cutter teeth when cutting
paper. However, many customers were forgetting to put it in, so they continued to
be troubled by the fact their paper was not being cut as a result. We shared thisinformation with development who took this concern of our customers seriously. As aresult, we printed a warning to “please set the tooth rest” on the main unit of four
new products. That led to an improvement in the prevention of erroneous use.
Although a small improvement, we believe it has led to many customers being able
to use our products without hesitation. We will continue to evolve as the forefront ofcustomer communication to be able to solve our customer’s troubles in the future.
We were able to greatly improve convenience for our customers with just a small
improvement.

Initiatives in 2022
Revamped inquiry webpage
The Customer Support Center revamped the inquiry webpage on our corporate website. The new webpage design makes it easier forcustomers to identify the problem. We keep making improvements to the frequently asked questions section, enabling customers toresolve the issue themselves in many cases. We will keep monitoring customer inquiries and providing customers useful information in atimely fashion.

- 149 STAKEHOLDER ENGAGEMENTCOMMUNITY

community

Social Contribution
Basic Concepts
KOKUYO strives to be a trusted corporate citizen on both regional and national levels via proactive interaction andplanning with regional communities, while respecting regional culture and customs and encouraging theiradvancement.

Initiatives in 2022
Updated shareholder benefit program
We provide a shareholder benefit program to give shareholders a better understanding of our businesses and of the products andservices we deliver. In December 2022, we added an option to make a charitable donation so that shareholders can support ourefforts to address material issues. Of the eligible shareholders, 4.4% have chosen the donation option. This is considerably more thanour first-year target of 3%, which is the average among companies with a donation option.

- 150 STAKEHOLDER ENGAGEMENTComments from staff: Shinichiro Miura, head of IR officeOver the years, we’ve gift packs to shareholders so that they can get a better ideaof our products. More recently, we’ve pivoted to a sustainability strategy to aid oursustainable corporate development. As part of this, we now want shareholders toengage with us in tackling the material issues. That’s why we, with the help of 20%
Challenge members, introduced the charitable giving option.

Comments from staff: Konami Nishibayashi, an employee engaging in the 20% Challenge
KOKUYO runs the 20% Challenge, an internal moonlighting program. Through thisprogram, I applied to do moonlighting at the IR office, as I wanted to learn skills forcommunicating with shareholders and other stakeholders. I had a great timeworking on the shareholder benefit program. It was exciting and I learned a greatdeal. I’ll use the experience to spread the word about how KOKUYO is addressing
the material issues.

Campus Art Awards 2022: A Painting Competition for Junior High and High School Students
We hold the Campus Art Awards in partnership with The Yomiuri Chukosei Shimbun.
Campus Art Awards is a drawing competition for students at junior high school andhigh school. The award program began in 2015, and 2,039 works were showcased
this year. The theme for 2021 was titled “my sweet hometown.” This theme focusedon the landscapes, customs, traditions, events, cuisine, confectionary, and othermotifs associated with the students’ hometowns. The purpose was to give students anopportunity to take an interest in their hometown, discover its charms, and express
them. For the top individual prize, the winner received 50 Campus notebooksfeaturing the person’s winning picture. The school of the winner received 1,000 of
the notebooks featuring the winning picture.
The top individual prize-winning piece: “There's
nothing like a nice bath!”by Mitsuru Komiyama, a second-year student at
Nagano Junior High School- 151 STAKEHOLDER ENGAGEMENT

Michinoku Future Fund: A scholarship for students left orphaned by the 2011 disaster
Since the year after the Tohoku disaster of March 11, 2011, we have donated toMichinoku Future Fund*, a scholarship program for students who lost their parents inthe disaster. In 2022, the foundation awarded its 11th annual set of scholarship.
Scholarships were awarded to 70 students, securing them a place in a higher orfurther education institution, where they can start their journey towards a brightcareer. In previous years, supporters, students, graduates, and foundation staff
would gather at a ceremony held in March for the benefit of the recipients of thescholarships as well as for scholarship students who were about to graduate.
However, because of Covid concerns, the ceremony was restricted to students and

The sendoff event in 2019

foundation staff. Unfortunately, that meant we were unable to hear from the* Founded by Rohto Pharmaceutical, Calbee, and Kagome,recipients directly. Nevertheless, we remain as committed as ever to supporting thegood work of the foundation.

Michinoku Future Fund provides higher or further education
scholarships to students who lost their parents in the March2011 disaster, on the belief that future generations are thefoundation for the recovery. There have been 1,044
scholarship recipients since the foundation of the fund. Over760 students have already finished their schooling and areworking in their respective fields.

CSR in China: Chasing Big Dreams with Small Notebooks
We want to contribute to a self-directed, collaborative society, in which everyone
thrives. In 2014, we launched a community outreach program called Chasing Big
Dreams with Small Notebook. This year marked the seventh year of the program,following a three-year suspension amid Covid concerns. Volunteers fromKOKUYO’s workforce visit an elementary school in Hunan, China. They conduct alesson and organize games with the children to forge ties with the community. The
school receives a donation from KOKUYO and the children receive KOKUYOWith everyone’s good will, we make a hugenotebooks.

difference

For this year, we had a live linkup. For employees in China unable to visit the schoolin person, the live session made them feel like they were there. The event broughthome the importance of community outreach.

September 19, 2022: Daqiaojiang Primary
School, Huaihua, Hunan province- 152 STAKEHOLDER ENGAGEMENTSupply Chain Management
Basic Concepts
Rapid economic globalization has given rise to colossal multinationals. Many are extending their supply chains intodeveloping economies in an effort to drive down costs. This trend has exacerbated socioenvironmental issues. Examples
include human rights issues such as forced labor and child labor, widening inequality, and environmental degradation. Alongwith our supply-chain partners, we are determined to fulfill our corporate social responsibility by creating positivesocioeconomic impacts.

KOKUYO Group Sustainable Procurement Policy
Desiring a sustainable planet and society, we commit to corporate social responsibility throughout our supply chain. We will build trustwith our suppliers and communicate to them our values, particularly co-creation with empathy.

Quality management
We will satisfy customers and earn their trust by delivering products and services that enrich work, learning, and living. We will
manage risks effectively and ensure the accuracy of information about our products and services.

Respect for Human Rights
We desire a world of intercultural understanding, where everyone’s human rights are respected. We will never tolerate unjustified
discrimination, child labor, and forced labor, and will never deal with organizations that engage in such. We will never toleratesexual harassment, workplace bullying/harassment, or similar violations of human rights.

Health and safety
We will comply with Japan’s Industrial Safety and Health Law and other legal and regulatory requirements concerning health andsafety. We will pay fair wages and expenses, provide employee welfare programs, offer fair employment contracts, and comply withlegal and regulatory requirements concerning employee rights. We will encourage sustained and self-led efforts to improve theworkplace and work to prevent occupational accidents and disease.

Environment
As part of our corporate social responsibility, we will support environmental conservation at a global scale and involve local
communities in these efforts. We will comply with environmental laws, integrate a concern for the environment into all our businessactivities, and organize initiatives that protect the environment and support biodiversity.

- 153 SUPPLY CHAIN MANAGEMENT

Fair and honest trade practices
In our procurement activities, we will comply with the laws of the territories in question, our contractual obligations, and industrial andinternational norms. We will maintain a strict policy of non-engagement with organized crime groups, including groups (including
those labelled in Japan as “anti-social forces”) and another group that threatens public order or security. We will refuse all demands
from such groups and never do any business with them. In these ways, we will honor the rights of our suppliers, prevent extortion,bribery, and all other forms of corruption, and ensure fair and honest trade practices.

Information security
We will safeguard commercially sensitive information (including information about sales, technology, and business strategy) andpersonal information from loss and leaks. We will never engage in insider trading (trading in a stocks of KOKUYO or an affiliate
based on material information that is not yet in the public domain) or insider tipping.

Sustainable Procurement Guidelines
To ensure that our supply chain contributes to a sustainable planet and society, we established the KOKUYO Group Procurement
Guidelines. Based on the Sustainable Procurement Policy, these guidelines clarify the requirements and expectations for both
KOKUYO and our suppliers.

Quality management
We will satisfy customers and earn their trust by delivering products and services that enrich work, learning, and living. We will
manage risks effectively and ensure the accuracy of information about our products and services.

1-1 Ensuring product safety
To fulfill our responsibility as suppliers, we will satisfy product safety standards specified in the laws of the territories
concerned and prioritize product safety in design, manufacturing, and sales operations.

1-2 Quality management
To meet the customer’s requirements, we will comply with KOKUYO Group’s safety standards for products and services
as well as legal and regulatory obligations related to such.

1-3 Ensuring accurate information
We will be transparent about our business activities and about product quality and safety, and ascertain and disclose
information as necessary to meet stakeholder demands.

1-4 Risk management
We will maintain an effective risk management system to ensure continuity of supply in times of disaster.

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Respect for Human Rights
We desire a world of intercultural understanding, where everyone’s human rights are respected. We will never tolerate unjustified
discrimination. We will never tolerate child labor and forced labor. We will never deal with organizations that engage in such. We will
never tolerate sexual harassment, workplace bullying/harassment, or similar violations of human rights.

2-1 Non-tolerance of child labor and forced labor
We will never tolerate unjustified discrimination. We will never tolerate child labor and forced labor. We will never deal
with organizations that engage in such.

2-2 Non-tolerance of sexual harassment, workplace bullying/harassment, and discrimination
We will never tolerate sexual harassment, workplace bullying/harassment, or similar violations of human rights. We
will make reasonable accommodations for religious observance.

2-3 Freedom of association, right to collective bargaining
In compliance with local laws and regulations, we respect employees’ freedom of association and their right to bargain
collectively with their employer for better work conditions or wages.

Health and safety
We will comply with Japan’s Industrial Safety and Health Law and other legal and regulatory requirements concerning health andsafety. We will pay fair wages and expenses, provide employee welfare programs, offer fair employment contracts, and comply withlegal and regulatory requirements concerning employee rights. We will encourage sustained and self-led efforts to improve theworkplace and work to prevent occupational accidents and disease.

3-1 Employee health and safety
We will prioritize employees’ health and safety and provide a safe, secure, and comfortable working environment.

3-2 Respecting employees’ time
We will never allow working hours to exceed the statutory limits. In managing employee working hours and time off, wewill consider international standards.

3-3 Reasonable wages and expenses
We will comply with all applicable laws and regulations regarding employee compensation, including requirements forminimum wage, overtime pay, and legally mandated expenses and rent discounts). We will pay a living wage—awage that covers the employee’s basic needs.

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3-4 Emergency response
We will prepare for accidents, disasters, and other emergencies that threaten employees’ lives and health. We will
identify the risks (including the likelihood they occur) and prepare emergency procedures and secure the necessary
provisions to minimize damage to employees and assets. We will also organize training and drills so that employees
understand what to do in an emergency.

3-5 Occupational accidents and disease
We will identify, assess, document, and report occupational accidents and disease and then take corrective andpreventive action.

3-6 Workplace hazards
We will identify, assess, and control the risk of employees becoming exposed to biological, chemical, or physicalhazards.

3-7 Considering workload
As part of our efforts to control the risk of occupational accidents and disease, we will identify and assess employees’
physical workload.

3-8 Machine safety
We will assess the machinery used by employees to ensure it poses no threat to employee safety.

3-9 Safety in employee amenities
We will ensure the safety of employee amenities such as accommodation, dining areas, and toilets.

3-10 Health and safety communication
We will educate and train employees in the workplace hazards using a language and approach they will understand,and incorporate employee feedback regarding health and safety.

3-11 Managing employee health and productivity
We will manage the health and productivity of all employees.

Environment
As part of our corporate social responsibility, we will support environmental conservation at a global scale and involve local
communities in these efforts. We will comply with environmental laws, integrate a concern for the environment into all our businessactivities, and organize initiatives that protect the environment and support biodiversity.

4-1 Reducing energy consumption and greenhouse emissions
We will make sustained efforts to use energy more efficiently, reduce energy consumption, and reduce greenhouseemissions.
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4-2 Pollution
We will take reasonable steps to reduce atmospheric discharges of hazardous substances.

4-3 Water management
We will manage the environmental impacts of our water intake and wastewater discharges. As part of this, we will
monitor and control the amount of water we use and discharge. We will monitor, control, and process pre-discharge
wastewater. We will identify and control pollution sources that could contaminate water.

4-4 Protecting biodiversity
We will protect biodiversity in areas we source products from and in areas where we operate.

4-5 Using resources effectively, managing waste
We will use resources effectively and manage waste with the three Rs: reduce, reuse, and recycle.

4-6 Managing chemical substances
We will identify, disclose, and control chemical substances and other substances that are hazardous to human healthand the environment. These controls will involve on ensuring safety when the substances are handled, transported,
stored, used, recycled, reused, and disposed of.

4-7 Managing chemical substances in products
We will comply with legal prohibitions or restrictions on the use of certain substances in products. We will also comply
with customer requirements related to such.

4-8 Community engagement
We will organize social, educational, and cultural programs. We will engage with communities, organize local
cleanups, and encourage voluntarism.

Fair and honest trade practices
In our procurement activities, we will comply with the laws of the territories in question, our contractual obligations, and industrial andinternational norms. We will maintain a strict policy of non-engagement with organized crime groups, including groups (including
those labelled in Japan as “anti-social forces”) and another group that threatens public order or security. We will refuse all demands
from such groups and never do any business with them. In these ways, we will honor the rights of our suppliers, prevent extortion,bribery, and all other forms of corruption, and ensure fair and honest trade practices.

5-1 Promoting compliance
We will comply with local legal and regulatory requirements, societal norms, and corporate ethics. We will inform
employees about the need for such compliance.

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5-2 Fair and honest trading
We will engage in fair, free, and honest trading. When procuring, we will never exploit our position as the client anddemand unreasonably low prices or special treatment.

5-3 Non-engagement with organized crime
We will maintain a strict policy of non-engagement with organized crime groups, including groups (including thoselabelled in Japan as “anti-social forces”) and another group that threatens public order or security. We will refuse all
demands from such groups and never do any business with them.

5-4 Protecting intellectual property
We will protect intellectual property from unauthorized use.

5-5 No conflict of interest
No board member, executive, or employee will exploit their position for personal gain to the detriment of thecompany’s interests.

5-6 Whistleblower protection
We will treat whistleblower inquiries in confidence, protect whistleblowers’ anonymity, and never tolerate retribution
against whistleblowers.

5-7 No insider trading
We will never engage in insider trading (trading in a stocks of KOKUYO or an affiliate based on material informationthat is not yet in the public domain) or insider tipping.

5-8 Responsible mineral procurement
In procuring the tantalum, tin, tungsten, and gold used in our products, we will monitor the mining enterprises inquestion to confirm that they are neither fueling nor contributing to human rights abuses, environmental destruction,
corruption, or conflict in conflict-affected or high-risk areas.

Information Security
We will safeguard commercially sensitive information (including information about sales, technology, and business strategy) andpersonal information from loss and leaks. We will never engage in insider trading (trading in a stocks of KOKUYO or an affiliate
based on material information that is not yet in the public domain) or insider tipping.

6-1 Cyber defenses
We will use cyber defenses to stave off the threat of cyberattacks that may harm our company or a third party.

- 158 SUPPLY CHAIN MANAGEMENT

6-2 Personal information protection
We will safeguard the personal information of suppliers, clients, consumers, employees, and other stakeholders as
required by law.

6-3 Preventing information leaks
We will safeguard our own information and confidential information entrusted to us by a client or third party.

Sustainable procurement efforts
In 2022, we surveyed 549 suppliers about their sustainability efforts. Of these suppliers, 93% responded to the survey. In 2023, we
will feed back the survey results to the suppliers and hold dialogues with some of the suppliers to help them address the concerns.

No. of suppliers549

No. of respondents
511

Return rate93

- 159 SUPPLY CHAIN MANAGEMENT

Endorsement
Basic Concepts
We endorse international initiatives and guidelines related to sustainability.

Japan’s Guidance for Collaborative Value Creation
In our integrated reporting, we adhere to the Guidance for Collaborative Value Creation provided by Japan’s Ministry of Economy,
Trade and Industry. This guidance serves as a lingua franca for companies and investors to engage with each other. Business leaders
use the guidance to organize and integrate the information investors want to know (the organization’s values, business model,
strategy, governance, and so on) so that they can communicate more effectively with the investors.

Task Force on Climate-related Financial Disclosures (TCFD)
Our integrated reporting also follows the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD), which
we have endorsed. Specifically, our disclosures of strategies and policies include non-financial information such as initiatives for azero-carbon transition. The TCFD provides companies a framework for disclosing climate-related financial information, including
climate-related risks, opportunities, and initiatives.

Sustainable Development Goals
Our material issues align with the Sustainable Development Goals (SDGs), and we keep the SDGs in mind when developing products
and services. The SDGs were enshrined in the 2030 Agenda for Sustainable Development, released in 2016 following its adoption at
the UN Summit in September 2015. They represent the aspiration of the 193 member states to achieve a better and more sustainable
world by 2030.

Integrated Reporting Framework of the International Integrated Reporting Council
Our integrated reporting is also guided by the Integrated Reporting Framework of the International Integrated Reporting Council(IIRC). We use this framework to organize information about our value-creation process. The IIRC is a global coalition of regulators,
investors, companies, standard setters, accountants, and NGOs.

ISO 26000
We align our disclosures with the core themes set out in ISO 26000. ISO 26000 is a guidance standard concerning social
responsibility. It was published by the International Organization for Standardization on November 1, 2010.

- 160 ENDORSEMENTGRI Guidelines
The GRI Guidelines serve as a framework for reporting environmental, social, and governance information. The guidelines areprovided by the Global Reporting Initiative, an NPO dedicated to setting international standards on sustainability.

SASB Standards
We follow the SASB Standards when identifying our material issues. The SASB Standards are provided by the Sustainability
Accounting Standards Board, an NPO that sets standards for corporate disclosures of non-financial information, by which acompany’s long-term value can be measured.

- 161 ENDORSEMENT

Awards and Accolades
Rankings and Recognitions

Date ofAnnouncement

Name of Recognition

Results

Sustainalytics ESG Risk Rating

April 2023

Negligible Risk

Toyo Keizai CSR Ranking 2023 (Toyo Keizai Inc.)

February 2023

Overall ranking: 301st
Climate Change B- (Management)

CDP2022

December 2022
Forests C (Awareness)

MSCI Japan Empowering Women Index (WIN)

December 2022

Selected for inclusion in index

4th Nikkei SDGs Management Survey (Nikkei Inc.)

November 2022

Grade: 3.5 out of 5

6th Nikkei Smart Work Management

November 2022

Grade: 3.5 out of 5

FTSE ESG Rating 2020

December 2022

2.4

MSCI ESG Rating 2020

April 2022

AA

S&P/JPX Carbon Efficient Index

March 2022

Index weight: 0.03%
Decile classification: 8

Other Awards and Certifications
Awards and Certifications for Sustainability Initiatives

April 2023

January 2022

May 2022

We received the Career Ownership Manage

Yui-no-Mori Project received the grand prize

Yui-no-Mori Project received the excellence

ment Award (highly commended)in the conservation in practice category” at t

award (Forestry Agency Director-General Aw

he Japan Nature Conservation Awards 202ard) at Forests [and] Decarbonization Challe2.

nge 2022.

- 162 AWARDS AND ACCOLADESJanuary 2023

March 2023

Mie Plant received the Chairperson's Award

Recognition as a 2023 Certified Health & Prof the Japan Greenery Research and Develo

oductivity Management Outstanding Organiz

pment Center at METI’s 2022 National Awar

ation (White 500) and a 2023 Certified Heatd for Greenery Factory.

h & Productivity Management Outstanding O
rganization (Large Enterprise Category)

Accolades Earned by KOKUYO and Its Employees

February 2022
Taku Sasaki from KOKUYO YOHAK_DESIGNSTUDIO earned the JAGDA Newcomer Award 2022.
* In the photo, the four image in the top row aretools/goods from stationery maker EX-. The two
images in the second row are tools/goods from online
store THINK OF THINGS MIDNIGHT SHOP. The two
images in the third row are goods from stationery
maker KOKUYO MICROSCOPES. The four images in
the fourth row are goods from mixed-use facility THE
CAMPUS. The two images in the bottom row are
examples of branding for THE CAMPUS.

- 163 AWARDS AND ACCOLADESAwards for Products and Services

April 2023

April 2023

April 2023

KOKUYO wins 2023 Red Dot Design Award f

KOKUYO booth wins Grand Prix in the ORG

KOKUYO wins 2023 iF Design Awards for tw

or pallo and Liite chairs.

ATEC TOKYO 2023 BEST PRESENTATION A

o facility interior designs and three product d* In the photo, lower image shows pallo chairs and the

WARDS Supported by ELLE DECOR Magazin

esigns.

e for second consecutive year.

* Upper-left: lounge space Aroma Square Lounge.

top right image shows Liite chairs.

* The photo shows part of the KOKUYO’s booth at theUpper-right: free-address area Cybozu TeamHub

exhibition (an interactive model with a festival theme).

Tokyo. Bottom-left: ARTBOARD, a whiteboard-style
painting canvas. Bottom-middle: HASA (deluxe
scissors). Bottom-right: ingLife, a working chair.

March 2023
Group company KOKUYO & Partners was co
April 2023
KOKUYO's Mechanical Pencil Gets Honorabl

mmended as an exemplar at SPRING’s Japan
Service Innovation 2022.

e Mention at China's 2022 Design Intelligenc

October 2022
16 KOKUYO products receive the Good Desi
gn Award.

e Award.

* Top row, from left: Carton 2.0 Archive Box, CarryCampus, Workpod Flex (mobile work booth), Fore(panel booth system). Second row, from left: Leafy(panels), Join (height-adjustable stool), Multis(compact table), Grabis (panel with whiteboard
function). Third row, from left: ingLife (a working
chair), Energy Series, Rooney, Synergyca CoCreation Lounge (co-creation space). Fourth row, fromleft: Bizrack bag-in-bag, Perpanep (lay-flat
notebook), Bizrack laptop stand with slide board,
clipboard file holder.

- 164 AWARDS AND ACCOLADESApril 2022

April 2022

April 2022

KOKUYO received the iF Design Award for si

KOKUYO’s booth won the top prize at Orgat

KOKUYO's "ingLIFE" Multi Objective Chair,x construction/interior design projects it wor

ec Tokyo 2022’s Best Presentation Award, w"EX-" stationery series, and "PAPIER BOARD"

ked on and for three of its product designs.

hich is sponsored by Elle Decor.

whiteboard sheet win 2022 Red Dot Design* Top row, from left: JX Nippon Mining & Metals* The photo shows part of the KOKUYO’s booth at theAwards.

SQUARE LAB & LOUNGE, NISSIN GARAGE, Clay

exhibition (based on an amusement park).

Studio 2. Middle row, from left: MIRAICONVENIENCE STORE, mot. Mitsui Office forTomorrow OTEMACHI ONE, THE CAMPUS. Bottomrow, from left: EX-, STACKA, Tsumishi.

- 165 AWARDS AND ACCOLADES* From left: ingLIFE, PAPIER BOARD, EX-

Editorial policy
We recently restated our philosophy and embarked on a program of transformation to achieve our next growth goal. In 2023, we
published Integrated Report 2023, which gives our shareholders and other stakeholders a clear idea of our new strategic direction
and how we aim to achieve sustainable corporate development and create value on the road to 2030 and beyond. By reading thereport, you will discover we defined our value-creation story and material issues, and how we have aligned these issues with ourbusiness strategies. By exploring this website, you can learn about our initiatives for addressing material issues and our othersustainability initiatives. We have included plenty of referential data too.

Period to which the integrated report pertains
Integrated Report 2023 pertains to the fiscal year ended December 31, 2022.
* However, it also includes information that predates or postdates that fiscal year.

Report scope
Integrated Report 2023 focuses on KOKUYO CO., Ltd., 20 consolidated subsidiaries, and 10 associated companies.

- 166 EDITORIAL POLICY