SUSTAINABILITY

2024

KOKUYO Group Website "SUSTAINABILITY" ［PDF］

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KOKUYO Sustainability

Message from the CEO

Message from the CEO

Drawing on our strengths to achieve ourlong-term vision CCC 2030.

President and CEO

Hidekuni Kuroda

2023 and FE 2024: In line with expectations
Our long-term vision, CCC 2030, sets a 2030 target of 500 billion yen in net sales. To achieve this target, we’ve developed the Forest-Like Management
Model and have worked on our third medium-term plan, Field Expansion 2024 (FE 2024)—an execution strategy covering, the years 2022, 2023, and2024. In this strategic context, 2023 represented an important foothold toward the final year of FE 2024.
How, then, did we fare in 2023? Our consolidated financial performance was generally pleasing. Although short of the annual target due to the delayed
recovery of the Chinese economy, net sales still showed revenue growth from the previous year, totaling at 328.7 billion yen. Operating income, at 23.8
billion yen, vastly exceeded the upgraded target and again represented growth from the last year. As for net income attributable to owners of parent, weachieved an all-time high of 19.0 billion yen, partly as a result of selling cross-held shares.
Some of our businesses performed better than others, with the variation reflecting national and international economic factors and high raw material prices.
The overall picture, though, is one of strong performance. In multiple businesses, we identified problems to address and capitalized on growth opportunities,
culminating in palpable progress in our portfolio strategy. Take, for example, our recent acquisition of HNI Hong Kong Limited, an office furniture company inHong Kong. Now known as Kokuyo Hong Kong Limited, the company is serving as the fulcrum in our efforts to streamline business processes and strengthencross-selling in China and ASEAN. To give another example, in our Indian stationery business, we boosted capacity to supply our mainstay products,
unlocking a larger market share. In these ways, the seeds of growth we sowed are beginning to bear fruit. Although the pandemic presented challenges forour office furniture operations, our employees promptly recognized shifts in our customers’ workstyles and identified corresponding needs, leading tonumerous successful deals. Exemplifying this is Work Pod, a portable work booth resembling a telephone box. Work Pod was designed to meet the demandfor diverse forms of remote conferencing following the rise in hybrid work.
Let me tell you about our expectations for 2024, the final year of FE 2024. For net sales, we’re determined to achieve an annual target of 355 billion yen,representing an 8% increase over the previous year, by further reinforcing the foundations for our portfolio strategy. This goal is mainly predicated uponsteady growth in our Japanese furniture business and business-supplies business as well as in our overseas stationery businesses. As for operating income,
we’re unlikely to meet the initial target set out in FE 2024 given that field expansion in the lifestyle field has been a little slow and also because we’re investingin talent and fixed assets ahead of the upcoming fourth medium-term plan. On the other hand, ROE is set to top 8%, exceeding the target set out in FE 2024.
It's crucial to meet the targets for 2024, the concluding year of FE 2024, as this success will provide us with a solid foundation for launching our fourth
medium-term plan and ultimately reaching our CCC 2030 goals.

-3MESSAGE

Three Strengths and Sources of Value Co-creation: Seeing as the customer does,
focusing on customers’ situational contexts, and having unique talent
As I mentioned earlier, during FE 2024 we’ve been seizing growth opportunities in a number of businesses. This growth is driven by three strengths that
represent sources of value co-creation at Kokuyo.
The first of these strengths lies in a corporate culture where we co-create ideas and solutions together with customers. Our employees are good at seeing fromthe customer’s perspective when it comes to developing products (furniture, stationery, office supplies) and the purchasing and delivery services related tothem. In other words, our employees can switch back and forth between two different perspectives: They can think as the customer does and they can also
think as one who is pitching a solution to the customer. Although it is generally thought that the practice of observing customers is very important in business,
we don’t believe it’s nearly enough to simply engage in passive observation. Instead, we believe it is even more crucial to put ourselves into our customers’
shoes. Only by thinking as the customer does can you generate brilliant ideas for new products and services. Through such customer-oriented thinking, we’ve
racked up many successes, helping entrench this approach as our corporate culture.
The second strength is that our employees focus not on what products we could sell but on the situational contexts in which the products might address thecustomer’s needs. Kokuyo aspires to be a WORK & LIFE STYLE Company. To fulfill this aspiration, our employees, as a matter of habit, always try to envisage
the situational context—in a work environment or private setting, for instance—where the value should be delivered. In the case of office furniture, forexample, we might pitch a particular combination and layout of office furniture with the idea that this would support more effective workstyles or enhancecommunication in the office. In the case of stationery in China, we struck gold with a line tailored for schoolgirls. Our success came from focusing on how
stationery could help make the act of studying more enjoyable. To give an example from our B2B operations, in a joint product-development project with theconvenience store chain FamilyMart, we analyzed the situational contexts in which consumers buy things and applied that to design the layout of the store
shelves. Our successes in problem-solving are down to a process in which we focus not just on the product itself but on the situational context in which it isused. Simply put, we have the talent and technological prowess to turn ideas into reality, and that is one of our key strengths.
Underlying this approach is our culture of experimentation, one of our important values. As part of this culture, we run experiments on our own or together
with customers when necessary, to identify potential unmet needs and then focus on solving them. This entrenched culture of ours enables a unique approach
to identifying and solving problems. As such, it plays an important role in our product development.
None of these approaches would be possible were it not for our wonderfully unique and creative employees, and we often use the words “diligent andquirky” to describe them. We say “diligent,” because employees are devoted to solving customers’ problems. We say “quirky” because they are obsessedwith thinking up interesting and unconventional ideas. "Co-creating with empathy" is a core value of ours, and the pursuit for it is an endless endeavor. It refers
to the process of building empathic resonance with customers and expanding the possibilities to co-create value with them. But as to whether our “diligent andquirky” employees have opportunities to fulfill their potential, this hinges upon the workplace climate and corporate culture. Management must therefore
provide a workplace environment that respects employees’ individuality and rewards challenge-taking instead of punishing failure. Management must also
ensure that employees feel psychologically secure, so that they have the confidence to take on the next challenge. Thus, to ensure our sustained growth as anorganization, we need to encourage an open, fair, and non-hierarchical culture that supports diligent and quirky employees. I and the rest of management
will stay committed to building an organization and culture to that end.

-4MESSAGEA self-directed, collaborative society: Real progress and outcomes in material issues(materiality)“Presenting a tomorrow you can’t wait for” is a corporate purpose statement we unveiled in 2022: We then made 2023 a year for communicating thispurpose to our internal and external stakeholders. We used TV ads to broadcast employees’ visionary ideas and I actively made a number of media
appearances. In this way, we succeeded in our goal of communicating our commitment internally and externally. What matters, of course, is what we do fromnow on. As we put our long-term vision into practice, we need to give internal and external stakeholders a clear idea of the visionary ideas we have (the kindof tomorrow we’re presenting) and how we will make them a reality. Our visionary ideas remain ideas for now, but everyone’s pumped—employees areraring to make them a reality.
CCC 2030 commits us to work toward the future we imagine: a self-directed collaborative society. I know this sounds like an impossible dream. After all,many people today would say that living a self-directed life and being true to yourself are hard to balance with being a collaborative team player.
To reconcile these contradictory elements, we need plenty of creative ideas and innovation. We also need to clarify where we are headed—to set out what
exactly we should be doing through such innovation. With this in mind, we identified five material issues. Addressing these material issues will unlock ourpotential for continually creating value over the long term and it will also lay a foundation for a self-driven, collaborative society.
In our efforts to tackle the material issues of 2023, the primary focus was on urging employees to take initiative and be proactive. This is because employees
are faced with a balancing act that demands creativity and innovation: they must meet urgent customer demands while also working to solve medium to longterm sustainability issues.
Employees have indeed been taking the initiative and devising ideas for the material issues, and their actions have started producing fruit. For example, toaddress the material issue of improving wellbeing among employees and external stakeholders, employees developed the idea of Hows Park. Hows Park is a
joint initiative in which Kokuyo employees work with the employees of Kokuyo K Heart, a special (disability-friendly) subsidiary of ours, to develop productswith inclusive design. The goal is to get inclusive-design products representing 20% of new product launches by 2024. Hows Park emphasizes both living aself-directed life and being true to yourself. It equally emphasizes being a collaborative team player in society. After a period of testing, Hows Park started fulloperation in June 2023. It organizes workshops to develop products. In FY2023, it developed an envelope storage box with a design that makes theenvelopes easily grabbable. It is now a product series.
Another material issue is to contribute toward a circular economy. For this issue, employees came up with Tsunage Loopa, a program of environment learningfor kids across Japan. The program involves collecting and recycling used notebooks. Since its launch in November 2023, a total of 86 schools haveparticipated in Tsunage Loopa, with a total 20 thousand tons of notebooks brought in for recycling. An increasing number of schoolteachers and students inelementary schools are expressing an interest in participating. Echoing this interest, our employees have shown an increased appetite for developing more
new products. It’s really wonderful to see employees start to take the initiative and engage proactively in building a sustainable world.

-5MESSAGE

Changes in 2024: A new talent management policy, stronger corporate governance
If we are to achieve the CCC 2030 target of 500 billion yen in net sales, then we need to expand the reach of our businesses. In 2024, we’re making
anticipatory investments in talent and infrastructure to unlock growth in the years ahead. We can predict that as we expand the reach of our businesses, wewill be met with the need to take on new challenges. It will be increasingly important to invest in the talent necessary to digitize and globalize our operations,
including existing ones.
Against this backdrop, we established a new talent management policy in 2023. The purpose of this new policy is to empower each employee by fostering anorganizational culture conducive to challenge-taking and by providing opportunities for growth (see the feature article on human capital management).
Under this policy, we’re going to ramp up talent development efforts. We’ve also committed to increasing the hiring of fresh graduates and mid-career talent,and in 2024, we doubled the previous year in the number of fresh graduates we hired. With a high proportion of our workforce consisting of employees aged
50 or older, we feel that hiring more young graduates will bring in fresh perspectives and ideas. We’ll also focus on a form of talent development that fosters
a mindset that is willing to take on the challenge of transcending existing business boundaries and creating new value.
CCC 2030 commits us to long-term value creation, in which we create both social value and economic value. One way we build our long-term value is tostrengthen corporate governance. As part of this, we switched our corporate structure from that of a company with an audit and supervisory board to that of acompany with three designated committees (nomination, audit, and remuneration). With this transition, we’ll be operating in the final year of FE 2024 with aclear separation between management supervision and business execution.
If we are to make real progress toward our vision in the run-up to 2030, we need to make decisions quicker. Streamlined decision-making in businessexecution is essential to sustaining and accelerating our revenue growth. Being a company with three designated committees means having a clearer divisionof roles and responsibilities between those who supervise management and those who execute the company’s business. This clear division will enable us tomake decisions quicker than we could previously. Along with this new structure, we’re encouraging our frontline employees to be proactive challenge-takers
and to engage in a PDCA cycle of continuous improvement.
I believe that our transition to a globally standard corporate governance model will help convince a lot more investors and stakeholders about ourcommitment to corporate governance.

Delivering our purpose in a changing world: Toward more self-directed andcollaborative workstyles and lifestyles
The world will continue to move at a breakneck pace, bringing further changes to workstyles and lifestyles. As people’s values grow increasingly diverse, so
too will people’s motivations for working and studying. In this world of change, our role as an organization is to deliver ideas and solutions for a better work
life, a better study life, and a better private life. This is exactly what our purpose (presenting a tomorrow you can’t wait for) is all about, and this is how weshow the world our unique worth. By fulfilling this purpose, we’ll be helping people be both self-directed and collaborative in their work life, study life, andprivate life, which in turn will help create a better planet and society.
In order to keep broadcasting our purpose to the world, we want to keep taking on fresh challenges in the global arena with the trust and confidence of our
stakeholders. I hope that Kokuyo will earn your continued trust and confidence as we present ideas for workstyles and lifestyles of tomorrow. I look forward to
our continued journey together.

-6MESSAGEKOKUYO Sustainability

Message from the CSO

Message from the CSO

Going global with a more ambitious
investment and M&A strategy

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

Toshio Naito

Japanese furniture business enjoys tailwinds from office renovation demand
The year 2023 was the middle year in our third medium-term plan, Field Expansion 2024 (FE 2024). FE 2024 commits us to improving the profitability of ourJapanese businesses, expanding the reach of our businesses, pressing ahead with a global expansion, and incubating new business ideas. In 2023, we
made headway with these strategies, largely in line with expectations. Our progress is reflected in our results for net sales and operating income.
As for the results for each business, let me begin with our Japanese furniture business. In Japan, demand for new office builds and office renovations remained
brisk, giving us an opportunity to apply our prowess in interior design. Our integrated office designs won acclaim, culminating in pleasing net sales andoperating income and driving growth for our organization as a whole. To unlock further growth for this business, we’ll focus on talent acquisition and hire
more fresh graduates and mid-career talent. We’ll also press ahead with a digital transformation program for streamlining business flows. These measures will
increase the market share and make the business more profitable.
Our overseas furniture businesses faced greater challenges than expected amidst the ongoing economic malaise in China. However, the prospects are bright.
Kokuyo Hong Kong Limited, which we acquired in 2022, is playing a pivotal role in efforts to streamline business flows, including consolidating products andtransferring production. Such streamlining, along with changes in sales prices and a cross-selling strategy, will increase the profitability of the overseas
furniture businesses. With Kokuyo Hong Kong’s post-merger integration proceeding as planned, the overseas furniture businesses should be able to achieve
their medium-term growth targets once the Chinese economy starts showing signs of recovery.
In our business-supplies business, we’re seeing the continued rise of e-commerce with the post-pandemic economic recovery and the return to offices. The
competition is heating up here, but I’m pleased by the performance of Benri-net, Kaunet’s solutions system for large-scale corporate clients. We’ll further
strengthen the system to expand the customer base.

Growth in the overseas stationery businesses
In our overseas stationery businesses, we’ve been working with local subsidiaries on global product development projects that will expand our market
presence. For example, we’ve worked with our Indian subsidiary, Kokuyo Camlin Limited, on a rebranding project. This project involves revamping productlines and their packaging to add more value to the products. This project culminated in sharp revenue growth in 2023—14% more than in 2022—and has
given us the confidence in the potential for making India our next big overseas market following China. We've also organized pop-up shops in Thailand,
Malaysia, and the USA to test the global demand for value-added stationery, which proved to be a hit with locals. In Japan, our stationery business
continued to face a tough environment, forcing us to reallocate resources and optimize costs. By contrast, we’re confident of further global growth in ourvalue-added stationery. In 2024, we expect that overseas stationery sales will account for 39% of our total stationery revenue for that year, 3.7 points up
from the previous year.

-7MESSAGE

Expanding the reach of our businesses and going global
Our current medium-term plan defines four strategic priorities for expanding the reach of our businesses and expanding globally: dynamic investment,
empowered talent, active innovation, and delivering both social and business value.
For dynamic investment, we’ve focused on M&As. On the belief that we needed a tougher M&A strategy, we established the Growth Strategy Council toprovide an organizational structure for deliberating on our growth strategy for the medium and long term. As we build a track record in overseas M&A deals,
our M&As are becoming more effective and our vetting process is becoming more streamlined. In the months and years ahead, we’ll be building our M&A
experience and pursuing overseas M&As more proactively.
For the empowered talent theme, we’ve started exploring ways to provide every employee with growth opportunities, including holding a talent development
committee in each business division and focusing on employee transfers, promotion, and assignment. We’ve also established a talent management policy andlaunched an internal talent development organization called the Kokuyo Academy as part of a systematic approach to talent development.
One example of what we’ve done in the active innovation theme is The Campus Flats Togoshi, which we opened in September 2023 in the Togoshi area of
Shinagawa, Tokyo. The Campus Flats Togoshi is Kokuyo’s first “share house” (a residential property with shared spaces separate from private rooms). The units
have been filling up fast, and we’re now mulling a second building. That’s not the only example. In the second half of 2023, we launched Pandoor, a service
that supports parallel work. We have also begun our experiment with Study with Campus, a private study area for middle school and high school students.
These examples demonstrate our increased activity and innovation in our entrepreneurial endeavors.

Focusing on cash flow as we head toward further growth
We recognize that our growth prospects will be limited if we just focus on enhancing our existing businesses. Accordingly, as well as expanding the reach of
our existing businesses, we’re focusing on nurturing ventures that tap into new needs, as part of a shift to discontinuous growth. In 2023, we witnessed agenuine transformation in our employees' mindset, marking a successful transition towards growth.
We want people to see Kokuyo as an organization of sustained growth, and they will only do so if we have a robust capital policy. To that end, we’ll befocusing a lot more on cash flow and profitability of capital.
We continue to offload our cross-held shares. As of the end of 2023, cross-held shares accounted for 12.2% of our consolidated net assets. We’re on course
to reduce this figure to below 10% by the end of 2024.
Regarding shareholder returns, we’ve previously committed to a payout ratio of 40% in our dividend payments. However, having launched a share buyback
program that runs from 2023 to 2024, the total payout ratio for 2023 and 2024 is likely to top 50%.
For ROE, our current benchmark is 8% or more. We’re set to meet that target in FY2024, the final fiscal year of our current medium-term plan. Thus, we’remaking headway in our initiatives that focus on profitability of capital.
We’ll disclose further developments in our capital policy in our fourth medium-term plan, which we plan to announce later in 2024.

-8MESSAGEKOKUYO Sustainability

Message from the Managing Officer of CSV Division

Message from the Managing Officer of CSV Division

Business activities that address material
issues will enable us to balance social value
and economic value.

Managing Officer of the Auditing Committee and CSV
Division

Naotaka Umeda

Kokuyo’s unique culture: A passion for tackling societal issues
A hallmark of Kokuyo is our passion for proactively tackling societal problems. This mindset is one of our strengths and has become an embedded part of ourculture.
As social conditions change, so too do people’s values and so too do customers’ needs and the societal problems that need addressing. Kokuyo is good at
adapting to such macro changes, because no matter how society changes, we always retain our passion for tackling problems. Whenever an existing productor service has failed to meet the customer’s requirements, we’ve put our heads together and combined different ideas to solve the problem, and this has
sometimes involved co-creation with the customer. We’ve also always been creating new value, contributing to the resolution of societal problems. This wellrooted attitude represents a strength that enables us to deliver value for society regardless of changes in the way people work and live, and it represents apart of Kokuyo’s unique culture.

Kokuyo-style materiality: Balancing social value and economic value
The third medium-term plan, Field Expansion 2024 (FE 2024), sets KPIs for five material issues which we are committed to addressing.
In 2020, we ran our first materiality analysis. We referred to societal problems, as represented by the SDGs for example, and identified a number of material
issues. However, with employees feeling a little vague on exactly why they should be engaging in these issues, we failed to build up the united effort we’d
hoped for. In 2022, we took steps to rectify this situation. First, we clarified our corporate purpose with a new purpose statement—to present a tomorrow you
can’t wait for. We then defined the ideal future scenario we want to achieve—a self-directed, collaborative society—to establish consensus about our
direction as an organization. Finally, we updated our set of material issues, making them reflect Kokuyo’s present brand values more closely.
Kokuyo employees once had the notion that sustainability is just about contributing to society in some way. But after we updated our set of material issues,
employees started to see that sustainability is really a matter of how we can solve societal problems through our business operations. The swift response isprobably down to Kokuyo’s long-held culture of problem solving. Kokuyo as a whole has the passion to engage in sustainability, and while it may still takesome time for individual employees to grasp the full significance of this and take actions themselves, change is happening slowly but surely.
A good example of Kokuyo-style sustainability is our commitment to tackling the functional depletion of forests in Japan caused by a lack of forest-thinningwork. Back in the early 2000s, Kokuyo started selling products made from timber harvested in forest-thinning operations. In 2006, we launched a forest
conservation project called Yui-no-Mori Project in Shimanto, Kochi Prefecture. Until then, timber harvested in forest-thinning operations was mainly used ingovernment offices, but we started offering furniture made from such timber under the brand Yuimori. The idea was to use Japanese timber in a way that would
create a more harmonious relationship between people and nature. In this way, we developed a Kokuyo-style sustainable project that creates a positive loop
between environmental benefits (sustainable forest management) and economic benefits (contributing to the local economy). All sustainability activities areintegrated into our business operations, and the project is driven by the proactive efforts of our employees. Each of our Kokuyo-style sustainability projects will
surely help build up our organization’s long-term value.

-9MESSAGE

Understanding and explaining how sustainability action produces economic value
FE 2024 sets out the material issues (materiality) along with 2030 challenge goals and 2024 commitment goals. Each one is very ambitious.
Two of the five material issues are particularly ambitious: improve wellbeing among employees and external shareholders and expand business fields throughthe Forest-Like Management Model. They powerfully declare our organizational passion for making life better by contributing to a self-directed, collaborative
society.
In managing sustainability initiatives, we focus, as you would expect, on working toward the KPIs in a way that will balance social value with economic value,
but we also focus on inculcating awareness among employees about the benefits of the initiatives and the importance of proactive, dynamic action. We also
recognize that we must do more to give our shareholders, investors, and other stakeholders a precise and logically coherent account of how our materiality
efforts will create economic and social value. These tasks will be on our minds as we approach our fourth medium-term plan.

Creating as many “That’s it!” moments as possible
As I see it, customer needs are societal problems in their own right. Customers experience little annoyances or they find that a product lacks a certain featurethat would make it easier to use. When we deliver a product that makes customers say “That’s it! That’s just what I needed,” we are solving a bona fidesocietal problem. As small as the problem may be, we’ll put our heart and soul into solving it—that’s part of our organizational culture. In some cases, this may
be hard to square with short-term financial objectives like revenue and profit. But what matters most is to put ourselves into our customers’ shoes to find asolution to their problems. That is where our true purpose lies. The more we solve customers’ problems, the more we, in turn, enhance our ability to sustainably
create economic value. Sustained creation of social value along with economic value requires employee creativity. It also requires us to articulate theorganization’s values in clear language to ensure they continue to be upheld. Whereas our culture, purpose, and material issues were once tacitly
understood, they are now expressed in clear statements, which has helped in clarifying Kokuyo’s direction and informing employees about what we value asan organization. Kokuyo’s distinctive approach to problem solving—to find what it takes for the customer to say “That’s it!”—requires us to unleash one of ourstrengths: creativity. The Kokuyo-style approach is to get as many “That’s it!” moments as possible and, through these inspirations, create economic value. The
more employees identify these problems prevalent in society, engage in them, and show the world how we as a company can solve them, the more they willtake pride in the work they do. Kokuyo is full of people who keenly observe the small problems in the world, are willing to listen to people’s concerns, andoffer solutions. One of my primary responsibilities is to enhance the visibility of these valuable assets and foster opportunities for connection andcommunication. I am committed to intensifying my efforts in this regard.

- 10 MESSAGEKOKUYO Sustainability

Message from The Managing Officer of H&C Division

Message from The Managing Officer of H&C Division

Business-spanning strategic reassignments
will create opportunities for employees todevelop their abilities to drive our long-term
strategy and forge their career paths.

Managing Officer, Human Talent & Culture Division, andChair of Wellbeing Subcommittee

Yasunari Koshikawa

A passion for solving problems is our strength
When it comes to sustaining long-term value creation and achieving our long-term vision, CCC 2030, the most important thing is to leverage our corecompetencies to the fullest.
What exactly are our core competencies, then? One of our strengths is summed up by a witticism we’ve coined: being “diligent and quirky.” The phrase
encapsulates the kind of Kokuyo employee who is motivated and passionate, almost to the point of obsession, about solving customers’ problems and making
a positive difference in their lives.
Take, for example, Hako-Ake, a product that functions as both a box cutter and a pair of scissors. This product targets the niche need for a quicker and easier
way to open delivery boxes. The audience for the product may be limited and the product may have a limited social impact, but the prospect of customers
thinking “that’s just what I needed” was the key inspiration, and that’s what makes it a quintessential Kokuyo product.
Whether the target audience is big or small, the inspiration behind products has always come from a desire to make someone’s life a little easier. Over theyears, such creative imagination has become embedded as our organizational culture. It must remain rooted as a universal value in our organization in years
to come, when the reins are passed to a younger generation of employees.
However, this “diligent and quirky” mindset has yet to permeate across the whole organization; it remains limited to particular teams or divisions. In otherwords, there is still significant potential for it to spread. I feel the need to establish a foundation that enables signature Kokuyo-style creativity and a system thatallows individuals to fully exert their uniqueness and abilities across both the stationery and furniture businesses, so that we, as an organization, can foster
creative talent. Additionally, there is a need to devise and promote a talent strategy that inculcates Kokuyo-style creativity as a common value. This is my main
mission.

- 11 MESSAGE

The Talent Management Policy in context
With the aim of enabling the expression of signature Kokuyo-style creativity across all business areas, we formulated our Talent Management Policy (see thefeature article on human capital management), which delineates the core competencies of our talent. This policy is crafted to empower the talent necessary forrealizing our long-term vision. Guided by this policy, management will assist employees in developing visionary ideas.
The policy emphasizes dynamic reassignment, whereby employees who have until now confined themselves to a particular division or business area will startworking across divisional boundaries. This approach will help employees develop their career and gain multifaceted perspectives.
Kokuyo’s agenda for expanding its business area requires us to depart from the conventional approach to talent development. Kokuyo initially focused on
stationery and later expanded into the workstyle and lifestyle fields. As a result, employees have tended to specialize in one business area or another.
However, unlike in the 1980s and 1990s, when the emphasis was on quantitative expansion, our current focus is on qualitative aspects and value creation
under our Forest-Like Management Model. Therefore, we absolutely need talent with multifaceted perspectives.
In many aspects of business, we require talent with multiple perspectives. One example is our strategy to expand the stationery business in South East Asia.
Since business customs and the values young people expect from stationery differ from country to country, our product development and marketing teams
must understand the things that apply globally and the things that should be localized. Another example is The Campus Flats Togoshi, a “share house” weopened as part of our strategy for expanding the reach of the furniture business. In this project, the team had to think about uses for the idle building that coulddeliver added value to local people. In these kinds of projects, you need the knowledge and experience to combine Kokuyo’s strengths, but you also need tohave multifaceted perspectives. In other words, these projects are unlikely to succeed if our employees confine themselves to a single business field.
An urgent task in the months and years ahead will be to ensure that our approach to talent development and acquisition is well-aligned with our strategy forbusiness expansion and all other strategies. Reassigning talent across divisional boundaries is a part of this effort, and it’s something we will continue tostrongly promote.

Meaningful reassignment: What matters is matching management’s perspective withthe employee’s perspective
Strategic staff reassignments should be meaningful, requiring alignment between management's plans and employee preferences. While management focuseson cultivating talent to meet strategic objectives, it's crucial to balance this perspective with the potential and personality of the employees involved.
Furthermore, it's essential to ensure that reassignments align with the growth experiences employees seek. To facilitate optimal matches, we'll leverage variousorganizational structures, including the Talent Development Committee, where corporate officers discuss potential assignments for career development, andthe 20% Challenge, an internal program allowing employees to spend 20% of their time in another division.
There are cases wherein an employee can only achieve their career ambitions by first gaining the prerequisite knowledge and skills. In such a case, we’ll
make sure the employee in question understands that, and then we’ll provide opportunities for them to gain experience, thereby helping them advance toward
their dream career. Ultimately, I hope we can encourage employees to achieve growth beyond their wildest dreams.

An urgent task: Changing workplace attitudes toward challenge-taking
We conduct two types of employee surveys: a monthly engagement pulse survey and an annual stress check. On the whole, employee engagement is high,and we understand that this is contributing to our high employee retention rate.
Aspects that require more attention in the future include challenge-taking, a sense of growth, and other things that have to do with employees being vibrant.
While many employees relish taking on a new challenge, many others prefer to stay absorbed in routine work. Concerningly, this includes younger
employees. These findings suggest that we must do more to change attitudes and foster a workplace that empowers challenge-taking behavior. We do have aworking environment that is supportive of employees who show a willingness to take on challenges. If an employee raises their voice, they have peers that will
come to their help. As a company, we need to channel this culture effectively to create a robust organization that can maximize the challenge-taking
ambitions of employees.

- 12 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 theForest-Type Management Model. The main theme of this vision is to become a 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 such change, 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
with empathy

A culture ofexperimentation- 13 SUSTAINABLE MANAGEMENT

Designing
experiences

- 14 SUSTAINABLE MANAGEMENTSustainable Management
Background to Sustainable Business Strategy
In 2022, we established the Sustainable Business Strategy. For many years, our CSR Charter had served as a basic set of principles guiding our efforts tofulfill our corporate social responsibility (CSR). However, we decided to reformulate the charter as a sustainable business strategy that would bridge our longterm 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 insustainable business practices.

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

Organizational infrastructure for sustainability
Previously, the Environment Committee led efforts to address environmental issues and monitor social trends and issues. However, in 2022, the committee wasconsolidated into the new Sustainability Committee as part of a shift to a new organizational framework for sustainability. Under the present framework, wehave publicly committed to accomplishing the goals for our upgraded set of material issues, and senior management (executives and board members) havetaken on the leading role in integrating sustainability through a PDCA cycle. The Sustainability Committee is chaired by the Managing Officer of CSV Division,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 MANAGEMENTThe decision-making process in our sustainability strategy- 16 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 selfdirected, collaborative society. For the FY2022 materiality analysis, we performed a gap analysis. Specifically, we reassessed the current societal impacts ofour two strategic business domains defined in our long-term vision (CCC 2030) and third medium-term plan (Field Expansion 2024). We then back-casted
from the 2030 society we envisage to determine the gap between current impacts and desired impacts. With this information, we identified issues that weneed to proactively address. We divided these issues into economic and social categories.

Step 1: Identify issues
The process of updating the material issues began with a review of the existing issues we had defined in 2020. 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* and become a company in which no idea goes towaste. Through the review, we sought to identify a new set of material 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.

Step 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 these issues into economic and social categories and then plotted these issues onto thegraph shown on the right.

*SC: supply chain- 17 SUSTAINABLE MANAGEMENTStep 3: Reconceptualize materiality
Previously, we had conceptualized material issues as issues that were important to the SDG agenda. In this step, we reconceptualized them as issues that areimportant to our strategic agenda for creating the ideal society we envisage. We then created organizational infrastructure aligned with this new conception.
For the reconceptualized material issues, we set key performance indicators (KPIs) aligned with our vision for 2030.

*KPI(Key Performance Indicator)
Material Issues

Outcome
Improve wellbeing

Better wellbeing

Transition toa management systemthat creates social value

Innovation is created, leading to better wellbeing among
diverse individuals and communities

Expand business fields throughthe Forest-LikeManagement Model
Collaborative approach in all businesses contributes positively to the environmentand society,extending empathy outward in society and addressing social issues

Respond tothe climate crisis

Safeguard the planet as
a place for work and life
Our collaboration with partners contributes toward carbon neutrality throughout our supply chain
Our collaboration with partners and customers leads the way toward a zero-waste society by
reducing, reusing, and recycling
We safeguard the planet by balancing business activities with natural capital

Contribute toward
a circular economy

Contribute toward
a society thatcoexists with nature

2021 onward

Step 4: Final review of material issues by Sustainability Committee
The Sustainability Committee, chaired by the Managing Officer of CSV Division, will conduct a review and make the final decision on 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 in the social and economic landscape.

- 18 SUSTAINABLE MANAGEMENTSustainable Management

Decision-making Process for Material Issues (FY2020 to FY2021)
Decision-making Process for Material Issues (FY2020 to FY2021)*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).

Was a survey conducted?

Was desk research (secondary
research) conducted?

Consumers○ー

Key clients○ー

Investors (MSCI, SASB)ー○National and local governments(growth strategy)ー○SDG contribution from products,
services, and CSR items

ーー

Development divisions○ー

Senior management

No, but a discussion was held

Perspective

Stakeholders

Our businesses*SDGs：Sustainable Development Goals

MSCI：Morgan Stanley Capital International
SASB：Sustainability Accounting Standards Board
CSR：Corporate Social Responsibility- 19 SUSTAINABLE MANAGEMENTStep 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.

- 20 SUSTAINABLE MANAGEMENT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 and solve problems
through teamwork

Material issue 2
Promoting diversity and inclusion

Build a diverse, innovative workplace that is inclusiveof gender, disability, and nationality

Workforce is diverse, individual differences arerespected, and employees feel empowered

Material issue 3
Respond to the climate crisis

Reduce CO 2 emissions through energy efficiency andrenewable energy. Use forests to offset emissions

Material issue 4
Contribute toward a circular economy

Promote human rights and resource
conservation/waste reduction in the entire supply
chainsOffset CO 2 emissions: Contribute to absorption of atleast 6,000 tons of CO 2 a year
Reduce CO 2 emissions: Emissions down by 26% from2013 level in 2030
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 of hazardous
chemicals to minimize environmental impacts

Forests: Forests thinned at 150 hectares a year
Reedbeds: Reeds trimmed at 1.5 hectares a year

As of 2020

- 21 SUSTAINABLE MANAGEMENT

-MATERIAL ISSUE 1- IMPROVE WELLBEINGKOKUYO Materiality

Improve Wellbeing among Employees and External Stakeholders

Basic policy
Wellbeing is the experience of feeling happy and healthy.To help improve wellbeing, we will promote work-life balance, new workstyles, and adiverse workplace (inclusive of gender, disability, and nationality) that produces innovation.To promote wellbeing in society, we will develop
products with inclusive design.For this, we have two challenge goals: pitch ideas for new ways of working, and promote diversity, inclusion, andinnovation.

Vision for 2030
2023 results

Take-up of paid leave: 61.7%(among five main group companies
in Japan)
Percentage of leadership roles
occupied by women: 9.3% (among
five main group companies inJapan)
Number of inclusive-design
projects: 32024 target

2030 challenge goal

100% take-up rate for paid leaveamong managers and general staff

We promote personalized,
authentic employee experiences bymarketing “life -based working” (anapproach that tailors work aroundpeople, rather than expecting
people to tailor themselves aroundtheir jobs).
Challenge goals for flexible anddiverse work options (flextime,
empowering women) 27 challengegoals (three per year for nine years)

Women account for 12% of
leadership roles
Percentage of new product series
that incorporate inclusive design: At
least 20%

OutcomeInnovation is created, leading to better
wellbeing among diverse individuals
and communities.

We have removed social barriers,
encouraging more people toengage actively in work andlearning.
Percentage of new product series
with inclusive design: At least 50%

Having coined the term “life-based working” to describe a situation in which the one’s workstyle, learning style, and lifestyle are balanced and embody one’s
uniqueness, we have set 2030 challenge goals and KPIs for our efforts to encourage more people to engage actively and spiritedly in their work and study.

Challenge goals for flexible and diverse work options (flextime, empowering women) 27 challenge goals (three per year for nine years)
Percentage of new product series that incorporate inclusive design: At least 50%
To promote employee wellbeing, we’ll shift to a mindset that places more value on employees’ time and promote employee empowerment and growth.As anorganization that pitches workstyle solutions, we commit to building a workplace that accommodates diverse workstyles and that empowers employees todevelop their potential and build their career.
To contribute to public wellbeing, we will develop products with inclusive design. We define an inclusive-design approach as one in which, from the planningstage onward, one empathizes and co-creates with individuals who have disabilities or face social barriers in order to identify and resolve the issues.

- 22 IMPROVE WELLBEING

Actions to achieve the goals
To improve employee wellbeing, we will continue an initiative we launched in 2022 called Kokuyo-Style Hybrid Work.
We will keep experimenting with diverse workstyles. For example, we will provide our satellite-style multipurpose space known as n.5 (pronounced “n-tengo”) and, in 2024, start piloting a scheme that allows employees to do remote work in locations other than their homes to help them balance childcarecommitments and family care commitments with career. With new workstyles, employees will gain more disposable time, which will help them unleash theiruniqueness and forge a fulfilling career.
To help improve wellbeing among external stakeholders, we will accelerate our inclusive-design initiatives in 2024. We will use Hows Park as a testing
ground for us to pilot our inclusive-design initiatives. At Hows Park, a diverse team of individuals will stimulate each other’s creativity to develop inclusive
products and services. To help improve wellbeing among diverse groups of individuals and the public at large, we will pitch our inclusive designs and ourdesigns for the dialogue-based diversity office.

Shift to mindset that values employees’ disposable time
To help employees gain more disposable time, we will transform employee management with new
approach to workstyles and time allocation, focusing on three themes: follow-up process, 1 on 1, andleave support.
For the follow-up process theme, team leaders will keep track of members’ work with timely follow- ups
and then modify work schedules and reallocate resources as necessary. This process will help
standardize workflows and improve efficiency at each organizational unit. Alongside this, we will set
days for which we encourage employees to take paid leave and encourage employees and theirsupervisors to hold dialogues about strategic take up of leave. Such dialogue will only be effective if
there is an open organizational culture. We have examined the kind of 1-on-1 sessions that best suit ourorganization (the frequency of the sessions, the settings in which they are held, and the tools used),
resulting in the Kokuyo 1-on-1 model, which we have rolled out across our organization.
We are also actively committed to reforming workstyles in the logistics industry. Kokuyo Supply
Logistics, following Kokuyo Logitem, has now introduced flextime for distribution center staff and allother employees. With flextime, employees exercise autonomy in deciding which hours they work
during busy periods. This contributes to wellbeing by freeing up disposal time and by reducing physicaland mental strain.

*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.

Helping employees build diverse and fulfilling careers
Among our metrics for measuring empowerment of diverse employees in the workplace is a material goal: Women account for 12% of leadership roles in2024.
To prevent situations in which employees are forced to give up their career because of childcare commitments or family care commitments, we have revised
our systems and improved our programs for helping balance career with such commitments. We extended the coverage of sick child leave so that employees
can now use it until their child is in the sixth grade of elementary school. We also relaxed the requirements for family care leave. Alongside this, we revised our
personnel evaluation approach for employees on maternity or paternity leave so that their leave does not create a blank period in their record and so that we
can take into account the skills the employees have accumulated and provide feedback.
In conjunction with International Women’s Day, we held an event that focused on a fulfilling life and career for women (Life & Career Day for Women). The
event, which was well attended by employees, both men and women, featured talks by guest speakers. A panel discussion was also organized by employees
who were experimenting with strategies to balance childcare commitments with work. In this way, the event encouraged attendees to think about their careerand life. We will continue to help employees develop their potential and forge fulfilling careers.

*The five main group companies are: Kokuyo Co., Ltd., Kaunet

An event for thinking about life and careers for womenCo., Ltd., Kokuyo Marketing Co., Ltd.,
Kokuyo Supply Logistics Co., Ltd., and Kokuyo Logitem Co., Ltd.

- 23 IMPROVE WELLBEING

Promoting inclusive design
We have a cross-organizational taskforce that promotes inclusive design across the Kokuyo Group. With the support of social entrepreneur and social
designer Misaki Tanaka, we have launched and showcased Hows Design, a Kokuyo-style approach to inclusive design.
Hows Design uses a design approach that emphasizes co-creation through a process of dialogue inspired by asking plenty of “how” questions. Two “how”
questions are particularly important: “how are you?” which represents a concern for the people’s needs and “how will we do it?” which represents the passion
to build them a better tomorrow. Products and services created in Hows Design are labeled with an original mark. In 2023, we launched three products withthe mark. All three items have an inclusive design that accommodates the needs of people with disability and are based on ideas develop through a processof dialogue with members of Kokuyo K Heart Co., Ltd. (a disability-friendly subsidiary) and Kokuyo employees who have a disability. As well as promoting
inclusive design, the taskforce has launched a Hows Design website, held universal manner training sessions for employees, and co-organized a Dialogue inthe Dark* workshop. These and other activities of the taskforce all involve co-creation with external partners.
Our goal for 2024 is for 20% of our newly launched products to have been designed through the Hows Design process. In 2023, we launched a diversity
office called Hows Park, which runs workshops attended by designers, marketers, inventors, and lead users. So far, Hows Park has held 62 workshops since
the opening in 2023, and in 2024 two items were launched onto the market. We will step up efforts to reach our 2030 challenge goal, which is for at least
50% of newly marketed products to incorporate inclusive design.

2023

Established Hows Design, an approach to inclusive design, andlaunched three new products

2024

Percentage of new product series that incorporate inclusive
design: At least 20%

2030

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

Promoting inclusive design
USB memory sticks with five color choices
and easy-read text

- 24 IMPROVE WELLBEING

Next-generation counters that makepublic spaces more inclusive andaccessible

Kaunet’s story about developing products through Hows Design
Among the core products in Kaunet’s original Kaukore premium series is the quick-dispense series. The series
includes quick-dispense envelopes and quick-dispense trash bags that let you grab each item one by one without
hassle. When designing these quick-dispense products, Kaunet evaluated whether the items would be easy to grab
for people with low grip strength or finger strength and whether people with upper limb impairments could reallygrab each item without hassle. This marked the start of Kaunet’s engagement in Hows Design. Some 200 quickdispense packs products are on the market. Kaunet’s product development team tested more than 20 packs oftrash bags and envelopes over and over again. The tests highlighted issues with the container itself, let alone thepack: It was unclear where the tear-off opening was. Moreover, you had to exert strength to open the container
and use both hands to open it. The team then realized team that a quick-dispense design begins from the design ofthe container opening. The team then prepared tested eight varieties of a perforated tear-off strip, with threesamples of paper material in each case. The tests revealed that cardboard has a thickness that makes it easy toremove the tear-off strip. They also revealed cases in which the tear-off strip became a burden to tug part way
through. The team then designed a storage box for holding envelopes and tested the box to see whether it let users
grab each envelope one by one without hassle and whether it was accessible to wheelchair users with a lower
vantage point. The tests revealed that it was easy to grab each envelope one by one when the stack was tall butthat it was harder to do so when the stack was smaller. The team then cut out parts of the box and stuck parts back
together in a trial-and-error process. This process culminated in an envelope storage box that was the first Hows
Design product in the quick-dispense series. The box is designed so that the user can tell at a glance where theperforated tear-off strip is and can remove the strip with minimal effort. The box also features notches that make iteasy to break down and flatten. In other words, the product was designed to be easy to use from the start to theend.

Head of Product Development, Kaunet
Mr. Aoi

The team tested more than 20 packs of trash bags
and envelopes, including its own samples

The team tested perforated tear-off strips over andover again to find the optimum thickness, angles,
and toughness.

Before)The box’s tear-off strip is hard to find and theenvelopes are hard to grab one by one when only a
few are left.

After)The tear-off strip is easy to find and even the lastenvelope in the stack is easy to grab.

- 25 IMPROVE WELLBEING

Addressing a societal issue in collaboration with Kumamoto City
Kokuyo has worked on a social innovation with Kumamoto City, which is
promoting workstyle reform. With the municipal government’s work
growing increasingly complicated following the 2016 Kumamoto
Earthquake, the pandemic, and the digital transformation agenda, themunicipal government wants to bring in private-sector expertise forenhancing the quality of its services and improving the workplaceenvironment. We helped the municipal government reform its workstyles bychanneling our expertise in office space design and in improving
purchasing operations. Specifically, we redesigned the municipal office’s
layout to optimize workflow and enhance the workplace environment. We
also helped the municipality introduce a “group address” system (officespace is allocated to different teams, with each team having flexible
seating arrangements for its members), provided our system forconsolidating office consumables, and provided our system forstreamlining purchasing operations.
By using digital technology, the municipal office vastly reduced its businessprocesses and created new work processes, resulting in a more diverse
and inclusive workplace.

Kumamoto City
Reformation ProjectManagement SectionGeneral
Affairs Bureau,

Mr. Noguchi- 26 IMPROVE WELLBEINGKOKUYO MARKETING Co.,Ltd.
Business Supply Division
Public Business Development
Department Group 1
Group Manager

Mr.Ishii

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

Expand Business Fields through the Forest-Like Management Model

Basic policy
Over the years, we’ve offered solutions for new ways of working, learning, and living through a process of first-hand experimentation in which
we design experiences for customers through products and services. Amid the plethora of socio-environmental issues, we want to transformmanagement systems and 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.

2023 result

2024 target

15 visionary idea (Mirai Yokoku)
experiments(bringing the cumulative total since2022 to 22)

At least 8 visionary idea (Mirai
Yokoku) experiments(bringing the cumulative total since2022 to at least 30)

50.4% participation in sustainability
initiatives(compared to 27% in the previous
year)*Questionnaire survey conducted among

employees directly employed in domestic
consolidated group companies

100% of staff engaging insustainability efforts

2030 challenge goals

Outcome

Our new and existing businesses
address the problems society faces.
100% of sales have balanced social
value and economic value.

Our employees make the world abetter place in many ways.
100% of employees are addressing
social issues

Organization-wide collaboration
contributes positively to theenvironment and society, increasingorganizational empathy and leading
the way in addressing social issues.

By 2030, we aim to have all of our new and existing businesses contributing to the solution of socio-environmental issues. To that end, we set a 2024 goal toraise the number of visionary idea (Mirai Yokoku) experiments we produce. In line with this goal, we are committing resources in a sustained manner toward
new experiments and entrepreneurship that will resonate with an increasing number of stakeholders and lead the way in tackling socio-environmental issues.
By 2030, we want our employees to be playing a positive role in every corner of society. We will therefore integrate everyday work into sustainability
initiatives developed by members of taskforces of the Sustainability Committee. We will also organize awareness-raising events for employees and external
stakeholders to foster across society a culture of passion and commitment for sustainability.

Actions to achieve goals
Our goal for 2024 is to have produced 30 visionary idea (Mirai Yokoku) experiments and for 100% of
employees to be addressing social issues.
In an example of nurturing businesses ideas targeting new needs, we launched a business in the selfdriven learning sector in 2023. The business is called Hello! Family—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 for users to check where theirfamily members are and what they are doing. The number of visionary idea (Mirai Yokoku) experiments
increases year by year. Ideas in the pipeline in 2024 include a solution that helps people work multiple
jobs and an idea related to learning spaces for secondary school students. We hope to turn these ideas
into businesses.

- 27 TRANSITION TO A MANAGEMENT SYSTEM THAT CREATES SOCIAL VALUEA Mirai Yokoku experiment: The Campus Flats Togoshi
With the advent of the 100-year life, people are increasingly spending their disposable time on pursuits related to self-actualization, such as side jobs, adultlearning, and communitarian activities, making work life increasingly inseparable from private (or home) life. Against this backdrop, we channeled ourabilities in designing office and retail spaces along with our expertise in making work easier and transformed a company dormitory (built in 1990) in Togoshi,
Tokyo, into the Campus Flats Togoshi. We celebrated the opening in September 2023. The Campus Flats Togoshi is a multi-purpose facility. As well as having
39 apartment units, it has a study where tenants can have a go at something they have always wanted to do. It also has a food stand open to the public. The
facility was designed around the concept of prototyping lifestyles. It provides a space that tenants, as part of their everyday home life, can casually drop into
and use to try out something they’ve always wanted to try, as well as providing valuable time for plotting out one’s next life stage.

Message from a project member
The diversification of workstyles and lifestyles has hugely increased the range of options for how to live one’s life.
The inspiration behind this project was a desire to offer people new lifestyle ideas, drawing on our forte indesigning experiences. With a space open to the public and innovative content generation, the facility is designed
as a place where tenants can casually try out new things and a place outside the company where employees feel
connected with the community and their inner selves. In this way, I hope that the Campus Flats Togoshi willcontribute to community building and community interaction.

Corporate Planning Division
Innovation Center
Head of Lifestyle Exploration
Unit

Ms. Arakawa

Initiative for encouraging engagement in socio-environmental issues: Tsunage Loopa
In October 2023, we launched Tsunage Loopa, an environmental education program that brings
together three parties to think about how to protect the planet: 1) schoolkids across Japan, who use
stationery, 2) Kokuyo, which produces notebooks, and 3) members of the public who engage inrecycling. In the program, the schoolkids actively collect used notebooks and participate in the process
whereby the collected notebooks are turned into parts of new products. Through this experience,
participants will start thinking about how society can shift to a circular economy and create asustainable future. In FY2023, Tsunage Loopa reached 86 schools, with a total of 21.5 thousandchildren participating and with some 15,000 disused notebooks (2 tons) being collected. In March
2024, we launched an edition of the Campus notebooks (“Campus notebook Tsunage Loopa”)
featuring a front cover made from recycled notebooks that were collected at elementary schools inJapan as part of the Tsunage Loopa program. We will continue to encourage employees to take suchself-driven initiatives.

Front cover of Tsunage Loopa themed notebook(“Campus notebook Tsunage Loopa”)- 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 with these supply chain partners on
initiatives such as switching to more sustainable raw materials and delivery methods.

Implementing the basic policy: Following the TCFD framework

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-related risks. Under the supervision of the Board of Directors, theSustainability 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 to sustainability. It then formulates actions plans and allocatesbudgetary resources for addressing these concerns. The Environment Subcommittee (a subcommittee of the Sustainability Committee) collaborates with the
managers responsible for each business division to identify climate-related risks, incorporate the findings into strategic planning, and spearhead organizationwide efforts to mitigate the risks.

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

- 29 RESPOND TO THE CLIMATE CRISISScenario analysis
Scenario

Within 1.5℃

Description of scenario

References

Sustainable Development / Net-zero Scenarios: Committing to a net-zero transition by
2050, the world acts to keep global warming below 1.5℃ relative to pre -industrial times.

IEO World Energy Outlook 2021.
Sustainable Development Scenario/Net
Zero Emissions by 2050 Scenario

Government regulation is tougher compared to that in the 4℃ scenario, and people take agreater interest than they do at present in climate change and other environmental issues.
Stated Policies Scenario: Government regulation is weak compared to the other two
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 the environment remain as it is now.

4℃

IPCC SSP1-1.9
IEO World Energy Outlook 2021.
Stated policies Scenario
IPCC SSP5-8.5

Risks and opportunities< Workstyle Field >Scenario

Furniture Businesses

1.5℃

With growing pressure around the world for a net-zero transition, our customers, suppliers, and other social stakeholders will takemore action to contribute to the net-zero transition and to reduce waste. The financial/business risks 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, andthe potential to expand business domains by developing low-emissions businesses. Accordingly, we will seize the opportunity todevelop new products and services so that we can create value suited to the changes among customers and in society.

4℃

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

ScenarioBusiness Supply Distribution

1.5℃

As the net-zero transition progresses, customers, distributors, and other social stakeholders take more action to contribute to the netzero 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 witha 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 our climate resilience and create value suited to the changes among customers and insociety.

4℃

Raw material prices rise amid the global spread in consumer activism coupled with climate impacts. Physical risks materialize,
disrupting transportation and other parts of the supply chain, which may have severe ramifications for the business 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 ourorganization’s resilience by altering our procurement strategy and expanding digital measures.

< Lifestyle Field >Scenario

Global Stationery

1.5℃

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 the chance to create new value by developing products and services forJapanese and overseas markets that cater to the emerging trends.

4℃

Cost pressures increase amid the global spread in consumer activism and the physical impacts of climate change become anincreasing threat. The financial/business risks include higher costs in raw materials and energy. Where physical risks materialize, therisks 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 can be realized by strengthening resilience, globalizing the supply chain, andexpanding in overseas markets.

- 30 RESPOND TO THE CLIMATE CRISISScenario

Interior retail businesses

1.5℃

The net-zero transition increases pressure to realize ecological sustainability, including reducing the CO 2 emissions generated in thelife 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 ofconcern for the environment and the risk of increased competition from furniture rental and subscription services. Financial/business
opportunities can be realized by balancing business interests with environmental friendliness, such as by carbon footprint labeling anddeveloping services that reduce furniture waste (e.g. repair services).

4℃

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 furnitureproducts. 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 and ensure stable deliveries of our products by altering our procurement strategy anddeveloping our e-commerce business.

Risk Management
Climate-related risks are managed by the Environment Subcommittee (a subcommittee of the Sustainability Committee). Guided by the findings of regularinternal and third-party research, this subcommittee identifies and evaluates the risks with attendance of managers responsible for each business division.
Once the risks are identified and evaluated, they are communicated to business divisions concerned. The strategic implications of the risks are incorporated
into strategic planning by 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 the corporate group to manage groupwide risks.
To integrate climate-related risk management into this existing system for groupwide 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 the state of compliance with environmental laws and regulations.

Metrics and Targets
Material issues
2030 challenge goal
Outcome2024 commitment goal
KPI

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

With our partners support, we haveachieved our carbon emissions
reductions target 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

Emissions reductions target: 50%
reduction in our Japanese businesses
from 2013 level

We have committed to reaching net-zero by 2050.
We have previously worked to reduce GHG emissions at scopes 1 and 2, focusing on the emissions caused by our business activities in Japan. We have now
expanded our focus to scope 3 emissions—emissions in the supply chain related to business activities across the Kokuyo Group.
For 2030, we have set a GHG reduction target representing a milestone on the road to 2050. The target aligns with the Science Based Targets initiative (SBTi)established in the Paris Agreement.
We have also committed to a 2024 target of 50% reduction from the 2013 level in GHG emissions from operations in Japan.

Accomplishments in 2023, plans for 2024
Accomplishments in 2023

Plans for 2024

2024 commitment goal

2024 commitment goal

Reduce GHG emissions from operations in Japan by 38.9% from 2013 level2030 challenge goal

Reduce GHG emissions by 50% through renewable shift

2030 challenge goal

Submitted science-based targets

Get science -based targets validated, set basic plan for achieving themSequestered 4,133 tons of CO 2

Sequester 6,000 tons of CO 2

- 31 RESPOND TO THE CLIMATE CRISIS

Submitting science-based targets (for 2030) for validation
We have embarked on our journey to reach carbon neutrality by 2050.
We have set near-term science-based targets aligned with the criteria set by the Paris Agreement and submitted the targets to the SBTi for validation. They
include targets pertaining to scope 3 (supply chain) emission, so we will work with our supply-chain partners to make our supply chain carbon neutral.
Targets submitted to SBTi (they are still undergoing review as of May 2024)
・Reduce total GHG emissions at scopes 1 and 2 by 42% between 2022 and 2030
・Reduce total GHG emissions at the scope 3 category “purchased goods and services” by 25% between 2022 and 2030
・Get suppliers representing 17.4% of GHG emissions from “purchased goods and services” to commit to SBTis by 2028
From now on, we will focus on supply chain emissions as well as emissions from our own operations.

Strategy to meet 2024 commitment target
Progress in 2023 toward 2024 target
We have committed to a reduction of 50% from the 2013 level in GHG emissions at scopes 1 and 2 in Japanese operations.
In 2023 and earlier, we worked to meet this goal by shifting to renewable energy sources in Kokuyo Mie plant (which produces office furniture) andKokuyo Product Shiga (which produces notebooks and other paper products). These renewables shift reduced CO2 emissions by 38.9%.

CO 2
emissions（tCO 2 ）2013（refer
ence
year）

2021

2022

2023

2024
（goal）

30,683

24,103

24,101

18,741

15,341-21.4%-21.5%-38.9%-50.0%%
change*CO2 reduction result: 38.9% down from 2013 level

Coverage: Consolidated subsidiaries in Japan, Kokuyo K Heart, Heartland*CO2 absorption: 4,133t-CO2

Certificate validating CO2 absorption in Yui-no-Mori in July 2022

Strategy to meet 2024 goal
We are reducing CO2 emissions originating from the generation and consumption of electricity, which account for the majority of our scope 1 and 2
emissions. Kokuyo Mie plant (which produces office furniture) switched to net-CO2-free power in 2022, and Kokuyo Product Shiga (which producesnotebooks) did so in 2023.
In 2024, the switch will be made in Shibayama plant (which produces room partitions), in Kokuyo MVP’s Tottori plant, and in The Campus (our core live
office in Shinagawa).

- 32 RESPOND TO THE CLIMATE CRISISGHG levels: Calculation, reduction initiatives
Scopes 1 and 2 (our own emissions)
CO 2 emissions from 29 entities (Japan and overseas) in the Kokuyo GroupTo meet the criteria for SBT validation, we expanded the coverage of reduction estimates to our consolidated subsidiaries.
Our estimates encompass 29 entities: Kokuyo, 26 consolidated subsidiaries, and two affiliates.
In 2022, these entities emitted 37,846 tons of CO2. In 2023, this was down to 32,869 tons as a result of switching to renewable energy sources.

*The 2030 target pertains to the entities that were included in the scope of consolidation in the reference year of 2022.
*See the Data section for reduction results that include entities added to the scope of consolidation in or after 2023 and entities that are outside the scope of consolidation (nonconsolidated subsidiaries and affiliates).

Scope 1 and 2 emissions

Emissions
per unit(GJ / 100
millionyen)- 33 RESPOND TO THE CLIMATE CRISIS

2022

37,8462023

32,869

2018

2019

2020

2021

2022

2023

256.5

247.6

226.4

231.0

261.9

212.8

Renewables shift
We are switching to renewable energy sources to reduce our scope 1 and 2 emissions.
Kokuyo Mie plant (which produces office furniture) switched to net-CO2-free power in 2022, and Kokuyo Product Shiga (which produces notebooks) did
so in 2023. In 2024, the switch will be made in Shibayama plant (which produces room partitions), in Kokuyo MVP’s Tottori plant, and in The Campus(our core live office in Shinagawa).

Kokuyo Mie Factory

Kokuyo Product Shiga

Energy saving
While shifting to renewables, we are also working to use energy more efficiently in an ongoing effort to reduce energy consumption and GHG emissions.

OfficesWith the post-pandemic return to offices, we have seen a rise in office energy use. To offset this, we are working
to make our office assets more energy-efficient. We upgraded the air conditioning at our Osaka workshop,
reducing energy use by 24%.

Solar panels installed on the new wingof the Osaka officePlantsWe had anticipated that plants would use more energy with the rise in production, but we managed to reduceenergy use by improving operations and upgrading production equipment.
At Mie plant (which produces office furniture), operational improvements improved production efficiency,
resulting in 8% less energy use. At Kokuyo Product Shiga (which produces notebooks), a change in the rules forventilation resulted in 9% less energy use.

Solar panels at Shiga plant- 34 RESPOND TO THE CLIMATE CRISISDistribution in Japan (warehousing, deliveries)
With stronger commitment to energy efficiency (more energy-efficient lighting practices, for example), KOKUYO
Logitem reduced energy use by 6% in deliveries in its distribution center for the Greater Tokyo Area and by 15%
in deliveries in its distribution center for Chiba.

Hybrid streetlights installed at our
integrated distribution center for theGreater Tokyo Area

Scope 3 (supplier emissions)
Committed to decarbonizing our supply chain, we estimate and disclose scope 3 emissions (such as emissions from manufacturing services, transport anddistribution, or from the use and end-of-life treatment of sold products).
Previously, we limited our calculations to operations related to Kokuyo-brand products that Kokuyo produces. Starting in 2022, we expanded the coverage toinclude consolidated subsidiaries so that we could ascertain the environmental impacts of operations across our supply chain.
With this wider scope, total GHG emissions in 2023 amounted to 1,275,697 tons, down from the 2022 figure of 1,299,493 tons. A major contributor was
the reduction in scope 2 emissions with the shift to renewables in our Japanese production sites.
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.

2023

Emission by scope (tCO 2 )Scope1

6,825

0.5%

Scope2

26,0442.0%

Scope3

1,242,829

97.4%

Total

1,275,697% of total*In 2022, we expanded the coverage to include consolidated subsidiaries.
*We noticed an error in the data for 2022 that we disclosed in 2023. The graph above shows
the corrected data.

2019

2020

2021

2022

2023

Scope1

9,135

7,465

8,020

7,576

6,825

Scope2

32,13025,29028,24530,101

26,044

Scope3582,843

510,723

493,722

1,261,816

1,242,829- 35 RESPOND TO THE CLIMATE CRISISScope 3
emissions(t-CO 2 )% of scope
3 emissions% of total
emissions(scopes 1,
2, & 3)Category

Are these
emissionscalculated?

Category 1

Purchased goods and services

Yes-985,083

79.3%

77.2%

Category 2

Capital goods

Yes-

25,7152.1%

2.0%

Category 3

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

Yes

-

5,696

0.5%

0.4%

Category 4

Upstream transportation anddistribution

Yes-

40,052

3.2%

3.1%

Category 5

Waste generated in operations

Yes

-

4,055

0.3%

0.3%

Category 6

Business travel

Yes

-

1,187

0.1%

0.1%

Category 7

Employee commuting

Yes

-

3,129

0.3%

0.2%

Category 8

Upstream leased assets

No

0.0%

0.0%

Category 9

Downstream transportation anddistribution

Yes

-

0.0%

0.0%

Category 10

Processing of sold products

No

Because we produce complete products,
not intermediate goods

-

0.0%

0.0%

Category 11

Use of sold products

Yes-

79,250

6.4%

6.2%

Category 12

End-of-life treatment of soldproducts

Yes-

97,9907.9%

7.7%

Category 13

Downstream leased assets

Yes

-

284

0.0%

0.0%

Category 14

Franchises

Yes

-

382

0.0%

0.0%

Category 15

Investments

No

0.0%

0.0%

Total

-

Reason for not calculating

Because we calculate them as scope 1
and 2 emissions

Because this category does not apply--- 36 RESPOND TO THE CLIMATE CRISIS-

51,242,829--

-MATERIAL ISSUE 4- CONTRIBUTE TOWARD A CIRCULAR ECONOMY

KOKUYO Materiality

Material Issue 4: Contribute Toward a Circular Economy

Basic policy
We want to use the planet’s limited resources efficiently in delivering value to customers. Accordingly, we’ve been working to recycle more of ourwaste 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 to promote 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.

Metrics and targets for material issue2030 challenge goals
Outcome2024 commitment goal
KPI

Our collaboration with partners andcustomers leads the way toward azero-waste society by reducing,reusing, and recycling.

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

At least 80% of net sales attributableto products sold by the Group(including overseas companies) that
support a transition to a circular
economy100% of new products incorporate
circular-economy design principles

100% of waste (office, buildout
services, inventory) recycled
We conduct numerous experiments fora circular economy, encouraging morecompanies to commit.

100% of suppliers endorse ourcircular-economy design principles

100% of key suppliers (some 400
companies) provided feedback(evaluations, issues to address) in
supplier evaluation survey

Accomplishments in 2023, plans for 2024
Accomplishments in 2023
100% of new products (465 series) incorporated circular businessguidelines
Launched Tsunage Loopa, a program in which elementary school
students return used notebooks for recycling
Started disclosing product information about the materials in
products in order to increase recycling rate
Offices: 93.8% of waste recycled,Worksites: 81.8% of waste recycled
Provided feedback (evaluations, issues to address) to 482 key
suppliers

Plans for 2024
Keep developing products and services in accordance with Sutenai
Circle (our circular design guidelines)
Expand Tsunage Loopa (in which elementary school students canbring in used notebooks for recycling and get to see the result of therecycling)
Conduct a further survey among key suppliers to monitor theircommitment to sustainability
Take measures to achieve a 100% response rate in the survey
Start applying standards for paper and timber procurement to fulfill
our responsibility as an organization that uses copious amounts offorestry resources (paper and timber)- 37 CONTRIBUTE TOWARD A CIRCULAR ECONOMY

Implementing the basic policy
Circular business guidelines: Sutenai Circle
One of our material issues is to contribute toward a circular economy with the ideal outcome being a scenario in which our collaboration with partners
contributes toward carbon neutrality throughout our supply chains. To achieve this outcome, we developed Sutenai Circle, a set of circular businessguidelines, in 2023. Sutenai Circle delineates seven processes (A to G). Of these, we focus on three: Use (D), Collection (E), and Recycling (F). For theseprocesses, we communicate 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 recycling services.

Examples of business initiatives across the Kokuyo Group
Products and services integrating circularity principles
Organization-wide: Tsunage Loopa (an experiential learning program)
Tsunage Loopa is an environmental education program that prompts participants to think about how
we can look after our planet. The program brings together schoolkids in Japan, who use notebooks,
Kokuyo, which makes the notebooks, and anyone engaged in recycling. In the program, schoolkids
bring in used notebooks for recycling and get to see and touch the result of the recycling—new
notebooks that are partly made from the old notebooks. This experience helps transform attitudes
about recycling and pave the way toward a more sustainable future. In 2023, 86 schools (coveringsome 21.5 thousand students) signed up for the program, and some 15 thousand (2 tons) notebooks
were collected for recycling.

- 38 CONTRIBUTE TOWARD A CIRCULAR ECONOMYStationery Business: Tsunage Loopa edition of Campus notebooks
We have released a special edition of Campus notebooks for elementary school students. The front
and back covers are made from used notebooks that were returned by elementary schools
participating in Tsunage Loopa. In this way, we are creating a notebook-to-notebook recycling loopthat delivers notebooks back to the customer with no loss in the value of the materials. We hope thatthe product prompts people to think about non-wasteful ways of using many other kinds of products.

Furniture Business: Long-life design
We have adopted the Co.S.M.O concept, in which we use a platform for multiple furniture series,
allowing for modular elements that can be reassembled and replaced as necessary. Co.S.M.O
furniture has durable core structures and units with environmentally friendly designs that make thefurniture as light and compact as possible, minimizing CO2 emissions during transportation. For
long-selling furniture models, we extended our warranty from three to ten years in 2022. Throughmeasures such as this, we are committing to maximizing the useful lifespan of our products andservices.

Business Supply Distribution: Loopa
Kaunet Loopa is a simple, convenient, and reliable service for recycling office wastepaper. The
program now collects and recycles paper packs, paper cups, confidential documents, andmiscellaneous wastepaper. To facilitate the recycling of many more materials, we will incorporate adesign-for-recyclability strategy (using design and manufacturing processes that enable recycling).

Interior Retail Business: Helping maximize the lifespan of furniture
To reduce furniture waste, we have three services that help maximize the lifespan of furniture.
1）We offer a repair service that extends the furniture’s lifespan.
2）When users have no alternative but to discard furniture (such as when the family
composition has changed or when they move house), we offer to buy back the furnitureand upcycle it.
3）We recycle 100% of worn-out or broken furniture.

- 39 CONTRIBUTE TOWARD A CIRCULAR ECONOMY

Efforts in logistics operations: Cleaning service to make furniture as good as new
We offer a cleaning service for chairs and general fabric products. Using specialized cleaning
equipment, we wipe away marks made by oil-based marker pens, stains from spilt coffee, and longyears of embedded dirt and grime. We also buff the frame, the front and rear of the seat andbackrest, and the legs. The furniture is returned to the customer as good as new. In this way, thecleaning service helps extend the useful lifespan of the furniture. Note that the cleaning service isonly available in certain areas of Japan.

Initiatives for waste
The volume of waste materials generated by the group’s 41 business offices in 2023 was 22,472 tons (previous year: 20,124 tons), and the recycling rate
was 93.8% (previous year: 95.9%). We generated 4,015 tons of waste materials on worksites (previous year: 4,628 tons) with a recycling rate of 81.8%(previous year: 82.3%). The responsibilities of the prime contractor with respect to the disposition of waste materials generated in buildout processes havebeen clarified, and the obligations of the waste-generating company have been tightened. Efforts were made to contain waste materials in part through areview of the methods by which parts subject to processing at construction sites are ordered. As waste materials generated on worksites are not homogenous,
there are many cases in which recycling is difficult due to the intermingling of various types of waste materials in a given batch. Nevertheless, we will continue
to properly dispose of waste materials 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.

Reducing
Reducing and recycling at Shibayama plant
Shibayama plant generates about 500 tons of industrial waste every year. In 2023, the plantenhanced material recycling (recovering materials from waste without altering the chemical
structure of the materials) to increase its recycling rate. The plant managed to increase its
recycling rate by 3% by correctly sorting its waste. Previously, the plant found glass waste
unfeasible to recycle. In 2023, however, it hired a waste management provider that could
recover materials from the glass waste. Consequently, some 20% of the glass waste wassubjected to material recycling in 2023. Shibayama plant will continue to go further in reducing
and recycling its waste.

ReusingResource-efficient deliveries (using foldable crates instead of cardboard boxes)
Kokuyo products are now delivered to retailers in foldable crates to minimize the use of
packaging materials. Normally, the products would be delivered in cardboard boxes and theretailers would have to dispose of the cardboard themselves. The switch to foldable crates
minimizes resource use. Moreover, we periodically collect the crates, which helps inculcate acommitment to a sustainable circular economy in our distribution channels.

- 40 CONTRIBUTE TOWARD A CIRCULAR ECONOMY

Returning and reusing buffer packaging materials
We encourage our distribution channels to return buffer packaging materials (cushioning
material that protects the contents from shocks) so that they can be reused. We have started
reusing coverings that protect desk corners and door stoppers used to keep warehouse doors
from opening. By having these goods returned and recycled, instead of being disposed of after
the delivery, we are supporting the effective use of plastic resources.

Reusing, recycling
Recycling stretch film used in warehouses
Kaunet’s warehouses and KOKUYO Logitem’s distribution centers use stretch film to prevent
goods from falling. The stretch film is now returned and subjected to intermediate processing,after which it can be reused. By recovering materials that would previously have been disposedof and reusing them as materials in our products, we are reducing resource usage in the
production of products and reducing the amount of plastic waste that gets burned, thereby
contributing to an environmentally friendly circular economy.

Reusing and recycling collected furniture
We continue to run a collect and reuse/recycle scheme. After delivering products, we offer totake away the customer’s disused products so that they can be reused and recycled according
to their condition. In 2023, KOKUYO Logitem collected around 2,758 tons of used officefurniture (desks, chairs, and so on). Around 199 tons of the collected furniture was salvaged forreuse. The remainder was dismantled and sorted for recycling.

A desk being dismantled and sorted

Education and training
Workshop for learning about the circular economy
We can only help create a circular economy if many employees across the Kokuyo Group
understand what a circular economy is and know what hinders circularity. To that end, in 2023,
we ran a workshop based on the board game Waste-Zero Game. Each team had to think ofways a used product could be used further in order to avoid having to send it to landfill,
earning minus 5 points. Through this game, the teams shared ideas about the value on garbage
and insights they have gained in their everyday lives. In this way, the participants reevaluatedthe act of throwing things away.

Sustainable procurement efforts- 41 CONTRIBUTE TOWARD A CIRCULAR ECONOMY

In 2022, we surveyed suppliers about their sustainability efforts. In 2023, we conducted another such survey. Of the 533 suppliers we contacted, 482(90.4%) responded to the survey. We then fed back the survey results to these respondents. We will conduct another survey in 2024, aiming for a 100%
response rate. To fulfill our responsibility as an organization that uses copious amounts of forestry resources (paper and timber), we will start applying
standards for paper and timber procurement (see contribute toward a society that coexists with nature).
Number of suppliers533

No. of respondents

482

Response rate

90.4%

Third-party recognition
An NPO called GENKI Net for Creating a Sustainable Society organized a dialogue to explore thepotential for collaboration in paper recycling between the public, private, and academic sectors. At theevent, Kaunet Loopa was honored as a model practice for recycling office wastepaper and we received
a letter of gratitude from Ryoko Kizawa, the head of GENKI Net.

The letter of gratitude is presented- 42 CONTRIBUTE TOWARD A CIRCULAR ECONOMYThe Circular Economy Taskforce approaches its third year
Piloting a collect and recycle scheme for office furniture
Among the materials in used furniture, the metals tend to get recycled, but the plastic and timber materials
tend to get disposed of by incineration or landfilling. This is a big concern to us, as we want to lead theway toward a zero-waste society. We are therefore piloting a collect-and-recycle scheme for our
furniture. When the furniture is no longer needed, the furniture is collected and its materials—the timberand plastic materials as well as the metals—are recycled. This is not something a single company can doby itself. We work with providers of collection, intermediate processing, and recycling services who share
our commitment toward a circular economy. Together, in a trial-and-improvement process, we continue
our efforts to build this recycling scheme.

Workplace Business Division
Manufacturing and Production
Department
Strategic Coordination Unit

Mr. Nakamura

Working with customers and suppliers on alternatives for zero-waste society
To achieve the zero-waste society Kokuyo envisages, we must engage customers and suppliers in our
initiatives. In Kaunet Loopla, a recycling service run by Kaunet (which delivers Kokuyo’s mail-order / ecommerce services), customers can return their used plastic folders for recycling. With the collaboration of
suppliers, the plastic is reused as materials in office essentials, like pens, correction tape, and storage. We
will keep focusing on what happens to our products once they are no longer needed and develop morealternatives for zero-waste society.

KaunetProduct Development
Department, Merchandising
Division
Development Group 1

Ms. Shido

A notebook recycling program that gets children to think
To create a circular economy, our actions must be future-oriented as well as present-oriented. In Tsunage
Loopa, our environmental education program for elementary school students, the schoolkids get toexperience horizontal recycling with something they are familiar with—notebooks. This experience prompts
them to take a personal interest in the transition to a circular economy. We will keep expanding Tsunage
Loopa so that it reaches more kids and builds momentum toward a zero-waste society.

Global Stationery Business
Division
D2C Strategy Department
Direct Marketing Unit

Mr. Morita- 43 CONTRIBUTE TOWARD A CIRCULAR ECONOMYRelated information
Efforts to recycle plastic
In 2023, 3,486 tons of plastic waste was generated by the Kokuyo Group, 90.3% of which was recycled.* Logistics operations accounted for the largest
share of the waste generation, followed by buildout operations and manufacturing operations (operations in plants). 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 material recycling).

*This is the percentage of the total waste plastics generated by business operations in Japan. We compile data on such in accordance with the Act on Promotion of Resource Circulation for Plastics.
Inter-year comparison in plastic waste tonnage in JapanYear

Plastic waste tonnage by business category

Tons ofplastic
waste

Tons
recycled

Tons sent
to final
disposalsite% recycled

2019

4,108

3,819

289

93.0%

2020

3,229

2,981

248

92.3%

2021

3,769

3,515

254

93.2%

2022

3,535

3,145

391

88.9%

2023

3,486

3,149

337

90.3%

Plastic waste tonnage by group company*Under the Act on Promotion of Resource Circulation for Plastics, a company is classified as a large quantity
generator if it generated at least 250 tons of plastic waste in the previous year.

- 44 CONTRIBUTE TOWARD A CIRCULAR ECONOMY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 for the fact that one could dispose of
the products without having to separate them into paper, resin, metal and other materials. With the recent global rise in the problem of ocean plastics, theseries is again gaining recognition from the perspective of moving 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 Ministry of the Environment’s Plastics Smart Campaign, which focuses on the global problem of ocean plastics. The
campaign facilitates action on this problem by through partnership with a wide range of individuals, local governments, NGOs, companies, and research
agencies.
We are a member of the Japan Clean Ocean Material Alliance (CLOMA), and such membership helps us stay abreast of the latest technological advances inaddressing the problem of ocean plastics.

Large-capacity flat file (from the All-Paper series)

Paper folder with window (from the All-Paper series)

Low-plastic products
In the furniture business, we actively use recycled resins in our products. Some resins are recycled from discarded fishing gear and others from manufacturing
scraps. Our website discloses details about these recycled materials. We also try our best to design products so that, once they reach the end of their life, they
can be broken down into mono materials, which allows for more recycling.

Disclosing information about product materials- 45 CONTRIBUTE TOWARD A CIRCULAR ECONOMY

-MATERIAL ISSUE 5- CONTRIBUTE TOWARD A SOCIETY THAT COEXISTS WITH
NATUREKOKUYO Materiality

Contribute toward a society that coexists with nature

Basic 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 officefurniture). Over the years, we have worked to conserve biodiversity and reduce our use of hazardous materials in order to minimize our impact
on the environment.We will ascertain the environmental impact of our business activities and work on strategies to mitigate these impacts tocontribute toward a healthy planet, in which natural capital is balanced with business activities.

Metrics and targets for material issue2030 challenge goals
Outcome
KPI
Carbon footprint of business activities visualized andcarbon neutrality achieved
We safeguard the planet by balancing businessactivities with natural capital.

We now disclose our carbon footprint and actions tominimize 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

Accomplishments in 2023, plans for 2024
Accomplishments in 2023

Plans for 2024

Made a start in ascertaining risks related to raw materials, business sites, andthe surrounding areas as step toward ascertaining our environmental impacts

Apply Kokuyo Group Standards for Procuring Paper and Timber

Forest conservation: 88.55 hectares of forest thinned

Develop activities to create positive environmental impacts

Reedbed conservation: 0.45 hectares of reeds trimmed

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, alldescribing an aspect of co-existence with nature, include understanding biodiversity, relationship between business and biodiversity, evaluation of raw
material risks, and identification of risks to business sites and the surrounding 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.

- 46 CONTRIBUTE TOWARD A SOCIETY THAT COEXISTS WITH NATURE

Implementing the basic policy
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 the vital role forests play in mitigating global warming and supporting
biodiversity, we aim to promote harmony with forests by ensuring 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 timber trade
2. Choose timber suppliers in a more meticulous and scrupulous way to promote the sustainable use of forest resources
3. Recognize the valuable roles that forests play in local communities and ensure that procurement activities preserve and facilitate
these roles

Kokuyo Group Standards for Procuring Paper and Timber
In April 2024, we established the Kokuyo Group Standards for Procuring Paper and Timber. We satisfy these standards in our procurement of paper andtimber. We will go further in ensuring that our procurement activities are sustainable—and that respect for people’s safety and human rights is upheld acrossour supply chain.

Kokuyo Group Standards for Procuring Paper and Timber
Kokuyo’s businesses are heavily dependent upon goods made from natural resources, in particular paper and timber. Paper and timber are
renewable resources. Kokuyo’s businesses are therefore sustainable if they use paper and timber that has been managed responsibly. They will be
unsustainable, however, if the natural resources that supply the paper and timber are managed irresponsibly. With this firmly in mind, we commit tosustainable procurement, whereby we safeguard or reinforce ecosystems and biodiversity underlying our businesses and respect the safety andhuman rights of all people across our supply chain.
1. As a rule, we prioritize the use of paper and timber that is certified in an internationally reputed certification system. *2. If we are unable to use such paper and timber, we will use paper and timber that is confirmed to have satisfied the following legal
criteria:
1）The product can be traced back to the furthest upstream production site.
2）Documentation is available certifying that the product complies with legal requirements in the territory of production.
3）The product is not made from a species threatened with extinction.
4）The product does not harm the ecosystem.
5）The product does not harm the local environment or local community.
3. We will only use recycled paper or timber that has been recycled legally following market circulation.
4. We will routinely monitor the percentage of raw materials that satisfy the above criteria. Our goal for 2030 is to get this percentage
to 100%.
5. If the paper or timber in question has been certified but there is doubt about its sustainability, we may suspend the procurement of
the product until we have confirmed that it meets these standards.
These standards apply to paper and timber, but we will follow these standards in our procurement of other raw materials too. We intend to set out
separate sets of standards for other raw material categories.

*Currently, these certification systems may include the Forest Stewardship Council (FSC®) and the Program for the Endorsement of Forest Certification (PEFC).

- 47 CONTRIBUTE TOWARD A SOCIETY THAT COEXISTS WITH NATURE

Certified as a procurer of legal and sustainable timber
We have been certified as a “procurer of legal and sustainable timber” by the Japan Office Institutional
Furniture Association (JOIFA). In line with the requirements set out in the Act on Promoting Green
Procurement, we strive to ensure that the timber we use is legal and sustainable by providing a paper
trail to show how the timber is procured and used and by appointing the right people to manage thisprocess.

Results of due-diligence review of timber compliance (in accordance with Timber Legality Certification Due
Diligence System Manual —Furniture Edition)
In 2023, our due-diligence review of timber compliance revealed no potential legal issues with the timber we used. We will continue performing rigorous due
diligence while finding ways to further enhance the manual’s effectiveness. You can view the manual (ver 1.4) by following the link below.

How we have used forest resources
In 2023, we used around 6,958 tons of wood in furniture products. Of this wood, 17% consisted of rough-cut lumber that was made into solid wood orengineered wood (including plywood). The remaining 83% consisted of forest residues (byproduct from thinning or clearing) or engineered wood (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.

Materials used in furniture products(excluding packaging) in 2023

Engineered wood versus rough-cut lumber

Tree species among rough-cut lumber used

- 48 CONTRIBUTE TOWARD A SOCIETY THAT COEXISTS WITH NATURE

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

Condition

Ash

Volume used (m 3 )Country or region of origin
4

USA

Wood strands, veneers

18

Indonesia,Malaysia

Plywood

4

Japan

Engineered wood

56

Croatia,Germany

Poplar142

China,Canada,USA

Maple

1

Lauan

365

Kapur
Japanese cedar
Beech

USA
USA,Canada

Rubberwood

Engineered wood

16

Radiata Pine

Engineered wood

2

FalcataEngineered wood

224

Indonesia

Beech

Plywood

15

Germany

9

Malaysia

Meranti
Total

Thailand,Vietnam

857*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.
Using Japanese or local timber
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 forest thinning equipment, releasing it to the market 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 for making a chair comfortable.
Through Yuimori, we contribute to greater harmony with nature.

- 49 CONTRIBUTE TOWARD A SOCIETY THAT COEXISTS WITH NATURE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 desired use. With their universal
design, the counters are friendly to the elderly and to wheelchair users. While part of the structure is made 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. The table edge has a groove for securing a walking stick or similar items and a grip for wheelchair users.

The customizable counter protects user’s privacy
and enhances the experience of using the amenity.

A walking stick rests securely on the edge.

The edge is easy for wheelchair users to grip.

FSC Certification
In 2003, we received chain-of-custody (COC) certification from the Forest Stewardship Council® (FSC).
The FSC is an international non-governmental organization that runs a system of third-party forestry
certification. Its purpose is to preserve forest environments by promoting a responsible form of forest
management that benefits local communities and is economically sustainable. COC certification applies
to the processing and distribution of FSC-certified products. The organizations in our group that haveobtained 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 the Endorsement 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

UU ChairYui-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 andrestoring the link between the natural environment and local livelihoods. In 2007, the project was certified by the Forest Stewardship Council® (FSC®).Today,
Yui-no-Mori has a surface area of 5,425 hectares, and a cumulative area of 2,053 hectares has been thinned. Kochi Prefecture has awarded us the “COCO2absorption certificate” since 2007. In FY2022, the forest absorbed 4,133 tons of CO2. The cumulative total (April 2006 to March 2023) stands at 76,222 tCO2. In 2023, Yuimori (the brand of products made from timber harvested in the Yui-no-Mori Project) was honored at the 6th Eco Pro Awards and at the2023 Japan Wood Design Award. The Yui-no-Mori Project itself has earned accolades too. In January 2022, it earned the grand prize in the “conservation inpractice” category at the Japan Nature Conservation Awards 2022 Nature Conservation Society of Japan. In May 2022, it earned the “excellence award”(Forestry Agency Director-General Award) at Forests × Decarbonization Challenge 2022. In 2020, it earned a “sustainability action” commendation from the
Ecological Life and Culture Organization and the “18th Corporate Philanthropy Award” from the Japan Philanthropic Association. In 2019, it won acommendation at the Low Carbon Challenge Cup 2019 and a “minister’s prize” in the corporate category of the Ministry of the Environment’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.

- 50 CONTRIBUTE TOWARD A SOCIETY THAT COEXISTS WITH NATURE

Kochi Prefecture confers certificate of carbon sequestration
On November 11, 2023, Kochi Prefecture awarded Kokuyo and Kaunet a CO2 absorption certificate in recognition of the fact that we had offset a totalof 4,133 tons of CO2 (Kokuyo offset 3,497 tons and Kaunet offset 636 tons). The award ceremony was held at the Shimanto-cho town hall. Presenting
the award, [First-name] Sakata (an assistant section chief) thanked the two companies for contributing over the years to Kochi’s efforts to preserve its
environment, manage its forests, promote local industry, and support its PR. To help spread the word about Yui-no-Mori, Kaunet launched a scheme in2008 whereby customers can use their loyalty points to fund the thinning work. In 2023, there were around 186 applications for the scheme.
The 4,133-ton offset represented 11% of the group’s total CO2 emissions in 2023 (36,829 tons).

FSC certification
Yui-no-Mori has enjoyed FSC certification since 2007.
Following a regular audit performed on August 24 and 25, 2023, the project was recertified by the FSC.

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 in partnership with Shimanto
Forestry Association, Shimanto High School, and officials of Kochi Prefecture and Shimanto. On October 5, 2023, we measured the water quality of
Shimanto River. On November 19, we conducted a vegetation survey.

Wildlife survey
We investigated the kinds of fauna that inhabit Yui-no-Mori.
On May 11, 2023, we teamed up with experts and students at Shimanto High School to install 12 cameras in locations in Yui-no-Mori. The cameras were
installed in six locations, two in each (the locations were in Utsuigawa, Yoshikawa, and Shimotsui). The cameras recorded footage for six months, endingon November 7.
On June 16 and 17, an ornithologist helped us identify the birds that appeared in the footage.
Analysis of the footage revealed the presence of 11 types of mammals. One mammal species was the Japanese dormouse, designated as a natural
treasure. We also identified 46 types of birds. These results confirmed that Yui-no-Mori remains biodiverse.

Students from Shimanto High School installing acameraA camera in place

A Japanese dormouse (national treasure)- 51 CONTRIBUTE TOWARD A SOCIETY THAT COEXISTS WITH NATURE

Mammals identified
Order
Primates

FamilyCercopithecidae

Common nameBinominal name

Japanese macaque

Macaca fuscata

Small Japanese field mouse

Apodemus argenteus

Muridae
Unidentified murid species
Rodentia

Japanese giant flying squirrel

Petaurista leucogenys

Japanese dwarf flying squirrel

Pteromys momonga

Japanese dormouse

Glirulus japonicus

Unidentified bat species

Chiroptera

Common raccoon dog

Nyctereutes procyonoides

Japanese badger

Meles anakuma

Japanese marten

Martes melampus

Sciuridae

Gliridae
Chiroptera
Canidea

Carnivora

Mustelidae

Mustelidae

Lagomorpha

Viverridae

Masked palm civet

Paguma larvata

Leporidae

Japanese hare

Lepus brachyurus

SuidaeWild boar

Sus scrofa

CervidaeSika deer

Cervus nippon

1011Artiodactyla

6*Families and species were only counted if the family or species could be distinguished.
Birds identified
Order

FamilyCommon nameBinominal name

Oriental turtle dove

Streptopelia orientalis

White -bellied green pigeon

Treron sieboldii

Great cormorantPhalacrocorax carbo

Northern hawk-cuckoo

Hierococcyx hyperythrus

Lesser cuckoo

Cuculus poliocephalus

Black kite

Milvus migrans

Eurasian goshawk

Accipiter gentilis

Grey-faced buzzard

Butastur indicus

Ural owl

Strix uralensis

Japanese scops owl

Otus semitorques

Northern boobook

Ninox japonica

Ruddy kingfisher

Halcyon coromanda

Common kingfisher

Alcedo atthis

Crested kingfisher

Megaceryle lugubris

Coraciidae

Oriental dollarbird

Eurystomus orientalis

Galliformes

Phasianidae

Copper pheasantSyrmaticus soemmerringii

Japanese pygmy woodpecker

Dendrocopos kizuki

Piciformes

PicidaeJapanese green woodpecker

Picus awokera

Columbiformes

Columbidae

Suliformes

Phalacrocoracidae

Cuculiformes

Cuculidae

Accipitriformes

Strigiformes

Accipitridae

Strigidae

Alcedinidae
Coraciiformes- 52 CONTRIBUTE TOWARD A SOCIETY THAT COEXISTS WITH NATURE

OrderFamilyCommon nameBinominal name

Pittidae

Fairy pitta

Pitta nymphaCampephagidae

Ryukyu minivet

Pericrocotus divaricatus tegimae

Monarchidae

Black paradise flycatcher

Terpsiphone atrocaudata

Eurasian jay

Garrulus glandarius

Large -billed crow

Corvus macrorhynchos

Varied tit

Sittiparus varius

Japanese tit

Parus minor

Pycnonotidae

Brown-eared bulbul

Hypsipetes amaurotis

Cettiidae

Japanese bush warbler

Horornis diphone

Aegithalidae

Long-tailed tit

Aegithalos caudatus

Phylloscopidae

Eastern crowned warbler

Phylloscopus coronatus

Zosteropidae

Warbling white -eyeZosterops japonicus

Certhiidae

Eurasian treecreeper

Certhia familiaris

Troglodytidae

Eurasian wren

Troglodytes troglodytes

Cinclidae

Brown dipper

Cinclus pallasii

White’s thrush

Zoothera aurea

Japanese thrush

Turdus cardis

Narcissus flycatcher

Ficedula narcissina

Blue -and-white flycatcher

Cyanoptila cyanomelana

Eurasian tree sparrow

Passer montanus

Grey wagtail

Motacilla cinerea

Japanese wagtail

Motacilla grandis

Grey-capped greenfinch

Chloris sinica

Japanese grosbeak

Eophona personata

Emberizidae

Meadow bunting

Emberiza cioides

27

43

CorvidaeParidae

Passeriformes

Turdidae

Passeridae

Motacillidae

Fringillidae

9Invasive species

Chinese bamboo partridge

Bambusicola thoracicus

Red-billed blue magpie

Urocissa erythrorhyncha

Red-billed leiothrix

Leiothrix lutea

ReEDEN Project
The reeds of Lake Biwa play an essential role. They provide an aquatic habitat, support biodiversity, and absorb CO2. In the past, the reeds served asmaterial for roofing and sudare screens, but with the decline of such traditional industries, the reedbeds 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 that such 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.

- 53 CONTRIBUTE TOWARD A SOCIETY THAT COEXISTS WITH NATURE

Conserving Lake Biwa’s reedbeds -Network for Protecting Lake Biwa Through Reed ManagementWe have formed a network of partnerships for protecting Lake Biwa through reed management. The network had to suspend activities during the
pandemic (Kokuyo Project Shiga continued managing the reeds on its own), but it resumed activities in February 2023. Membership of the network has
grown with many companies resolving to continue sustainable-business initiatives and environmental initiatives and with many individuals recognizing thatenvironmental initiatives are essential to secure a sustainable future. The network had formed in the first place on the understanding that local stakeholders
should act together to address a local environmental issue that concerns them all. Now encompassing 132 companies that share the vision, the network
engages in reed cutting three times every winter, from December to March. The network cut reeds in Lake Nishinoko on two occasions in February 2023,
in Iba-Naiko in December 2023, in Lake Nishinoko on two occasions in February 2024, and it will cut reeds in Iba-Naiko in December 2024. Alongside
winter reed cutting, the network helps organize and advertise summer events, including a fishing competition to clear away invasive fish species and an
experience of canoeing around the reedbeds.
Reed cutting supports the environment because when the reeds grow, they absorb carbon dioxide and filter impurities from the water to a greater extent.
During the pandemic, the reedbed area under management shrunk. Compared to reedbeds that are never trimmed, reedbeds that are periodicallytrimmed have ticker, longer, and more healthy reeds.
To expand the project outward, we have brought on board more stakeholders outside our network of volunteers. Since the project began in 2017, 35
activities have been held, with a cumulative total of 5,500 people participating. We will hold more activities in the future.

December 16, 2023: Winter reed cutting in IbaNaiko with partners from the Iba area

February 10, 2024: Winter reed cutting in Nishinoko
with partners from the Shimotoira area

- 54 CONTRIBUTE TOWARD A SOCIETY THAT COEXISTS WITH NATURE

How reed conservation can contribute to a low-carbon world: Showing the impact
In biomass surveys, predetermined samples of the reeds are cut from the reedbeds and their length is measured to derive an average length. The average
length is then multiplied by the reed-cutting area to determine the amount of carbon dioxide the reedbeds are sequestering. This formula for calculating
the CO2 absorption in reeds has been published on Shiga Prefecture’s website.
The findings are shared with the organizations and individuals participating in the network to guide their future environmental activities.
In 2023 (counting three rounds of reed cutting), 13.3 tons of carbon dioxide was sequestered over a project area of 12,600 square meters.
There is now a body of evidence to show how the project is contributing toward a low-carbon 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 andbrought more people on board.
The project team plans to expand the 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 length as part of a biomass survey (in Iba-Naiko and Nishinoko)

External awards and recognition
Yuimori honored at 6th Eco Pro Awards■ Description of award program
Program organizer
Sustainable Management Promotion Organization
Name of award
Commendation (Yushu sho)AwardeeYuimori (brand of wooden furniture)■ Comments from the judges
・The office furniture designs have cleared three hurdles to using Japanese conifers inwooden furniture: cost, resilience, and aesthetics. The sale of the furniture has
environmental as well as economic benefits in that it contributes to better management ofman-made forests in Japan, which are often desolate. With these benefits plus anaesthetically appealing design, Yuimori has a positive outlook.
・We commend the fact that, as well as clearing the hurdles to use Japanese conifers inwooden furniture through a three-way collaboration, the brand allows for easy recycling
after the furniture reaches the end of its life.
・Yuimori is a brand of Japanese-made furniture inspired by the manufacturer’s forestry
program.
・It is great to know that a big-name producer of office goods is interested in forest
management. The manufacturer seems committed to engaging with the value chain andmanaging the whole life cycle of the product (rather than letting the sale be the end of thecycle, it creates value for second and third users too).

- 55 CONTRIBUTE TOWARD A SOCIETY THAT COEXISTS WITH NATURE

Yuimori honored at 2023 Japan Wood Design Award■ Description of award program
Category
Lifestyle design
Sub-category
Products
The Wood Design Awards honors wood-related products and projects that benefit consumers in three ways: byimproving life, by improving health, and by improving society. The purpose of the awards program is to promote
an abundant life with wood, enriching people’s lives, stimulating demand for Japanese timber, and encouraging
responsible forestry.
Endorsing the awards program, Kokuyo actively uses Japanese timber.

Yuimori—a brand of sustainable wooden furniture
Some 40% of Japanese woodland consists of man-made soft conifer forests, which provide a source ofsoftwood. With the rise in timber imports and the decline of the forestry industry, many of these conifer
forests have been left to grow desolate. Key to restoring and preserving the natural functions of forests is
to use as unwastefully as possible the timber that was harvested in these forests during thinning
operations. By using such timber in manufacturing, we can contribute to a society that lives in harmony
with nature. This belief inspired the brand Yuimori. One hurdle we faced was that the softness of conifer
makes it hard to use as furniture material. Another issue was that, as an office furniture maker, Kokuyo
mainly uses steel in its furniture products. To overcome these challenges, we engaged with partners who
had expertise in designs and manufacturing technology that made adept use of wood (wood being the
focus of the project) and combined their expertise with our own track record in manufacturing officefurniture. The collaboration resulted in designs that bring out the natural feel of the wood, blend in with theinterior space, and offer the resilience demanded by office furniture. We will keep protecting the forests ofJapan to contribute toward a future in which Japanese timber features much more prominently in thefurniture people use.
Workplace Business Division
Workstyle Marketing DivisionMarketing Strategy Unit
Ms. Kawamura- 56 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 with nature. 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 recyclingoriented society; contribution to a society that coexists with nature; 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 inline with the characteristics of their business based on this KOKUYO Group Environmental Policy. They then strive to improve their 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 by bringing
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 of greenhousegases we emit to realize a decarbonized society.

Contribution to a Recycling-oriented Society

We will strive to thoroughly save resources and reduce waste materials as far as
possible and then effectively utilize them as resources to develop a recyclingoriented society.

Contribution to a Society That Coexists with
NatureWe will promote the conservation of biodiversity and the reduction in harmful
chemical substances through our business activities to minimize ourenvironmental impact on ecosystems.

Procurement, Development and Supply ofEnvironmentally Friendly Products

We will reduce our environmental burden over the entire product life cycle andwill 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 to observe theindustry guidelines we have accepted and our own standards, as well as toprevent environmental pollution.

Information Disclosure and Communication

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

Environmental Management

We will strive to continuously improve our environmental performance and tosolve social issues through our business activities to realize a sustainable society.

- 57 ENVIRONMENTAL MANAGEMENT

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 recycling-oriented economy andcontribute toward a society that coexists with nature. We started considering the state we want to achieve in 2030 and then established indicators (KPI) forthat when promoting activities. We have set ambitious targets for 2030 as challenge goals and targets we are aiming to realize in the Medium-Term Plan ascommitment goals to serve as a milestone for that.
Material Issue
Material issue 3
Response to the
Climate Crisis

Safeguard the planet
as a place for workand life

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

Material issue 4
Contribution to a
Recycling-oriented
Society

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

Material issue 5
Contribution to aSociety That Coexists
with Nature

We safeguard the planet bybalancing business activities
with natural capital.

2030 Challenge Goals

2024 Commitment Goals

We are working with partners toachieve carbon emissions reduction
targets based on the Science Based
Targets initiative (SBTi).

Reduce CO 2 emissions: Reduce CO 2
emissions in Japan by 50% compared
to 2013Over 16% of the Japanese population
participates in our circular-economy
initiatives, creating positive behavioral
changes in society.

100% of new products are based on
the recycling-oriented design
guidelines

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

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

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

-*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 has covered KOKUYO and all major subsidiaries in Japan. While keeping the core elements of the EMS
consistent across the group, we differentiate according to the scale of the environmental impact. Specifically, operating companies and plants with a relatively
large environmental impact get case-specific treatment, while those with less impact get standard treatment. We also try to give the companies sufficientleeway to manage 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 address environmental issues andmonitored socioenvironmental trends. However, we later decided that a more group-wide approach was necessary to deal with the increasingly diverse andcomplex 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 cross-organizational 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.

- 58 ENVIRONMENTAL MANAGEMENT

Environmental Education
We provide training opportunities to raise employees’ awareness about environmental conservation, learn the knowledge necessary for accomplishing ourenvironmental goals, and gain the expertise to deal with emergencies. These opportunities include briefing sessions about environmental law, which areprovided by the ISO Promotion Office, workshops for training the auditing team, and an assortment of training provided by each corporate division. In fiscal
2023, we saw an increase in employees attending general environmental training as a result of organizing an internal event called Sustainable Academia
Weeks. This event was designed to deepen employees’ sustainability awareness and it focused on five themes: enhancing wellbeing, transforming to a
management system for creating social value, responding to the climate crisis, contributing to a circular economy, and contributing to harmony with nature.
Attendance of accident and emergency drills increased too. This increase was the result of including in the total the business continuity planning training andevaluation meetings run by Actus.
Number of attendees
Education and training category*Total employees attending training programs and drills

2021
General environmental education

2022

2023

2,561

2,611

3,466

Briefings on environmental targets andlegislation

372

1,711

1,657

Accident/emergency response drills

325

234

316

Training for internal audit team

30

17

17

Other training

744

68

94

4,032

4,641

5,550

Total

The venue for Sustainable Academia Weeks(Shinagawa office)Sustainable Academia Exhibition(Shinagawa office)- 59 ENVIRONMENTAL MANAGEMENT

Emergency drill (for discharge event)at Kokuyo MVP

Taking a personal interest in sustainability
During Sustainability Academia Weeks, the Sustainable Academia Exhibition was held to showcase thecompany’s sustainability initiatives. I and three other employees were on the team running the SA
Exhibition. Our group had members from the sales, design, and development teams, and we had all
signed up for the 20% Challenge. *1
A key focus of the Sustainable Academia Exhibition was to help our fellow employees understand thecompany’s sustainability initiatives and take a personal interest in them. To that end, we made sure theexhibition would be relatable to the perspectives of ordinary employees, with content and styles clearly
showing how Kokuyo’s material issues related to employees’ everyday work. The display panels used acolorful visual design to catch the eye and create a fun learning experience.
The exhibition ran for a fortnight in Tokyo and Osaka. It was attended by 55% of the Tokyo staff and by
67% of the Osaka staff. *2 Inside the venue was a message board called Our Sustainable Kokuyo, whichshowed employees’ messages about sustainability. Seeing employees post their messages, I got the
impression that we have taken a big step forward.
This event has inspired employees, including me and the other organizing members, to take a personal
interest in sustainability. I hope that this encourages us all to take further sustainability action andbroadcast these actions to our stakeholders so that many more people will engage with Kokuyo insustainability action.

Workplace Business Division
Manufacturing Development
Division
Construction Materials
Department

Ms. Tenhiro*1 The 20% Challenge is an internal moonlighting scheme in which employees can volunteer to spend 20% of their hours working in anotherpart of the company. The purpose is to encourage employees to proactively develop their career and their skills and to spark up theorganization.
*2 The total number of attendees at each event

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 on legal compliance. In first-party
audits, the auditee (a group company) performs the audit on itself. In second-party audits, our ISO Promotion Office performs the audit on the auditee. In
2023, first-party audits were performed from July 1 to September 7, second-party audits were performed from August 1 to September 11, and third-party(ISO 14001) audits were performed from November 27 to 30. The first- and second-party audits identified 20 instances requiring corrective action. One ofthese was a serious non-conformity: During an internal audit, the manager of the audited site failed to provide the records as requested in a timely fashion.
Corrective action has been taken. For example, the manager has received training to improve their discernment and the site’s recordkeeping methods havebeen improved. The first- and second-party audits also identified a record 12 issues of non-conformities related to operational management.
On the other hand, the third-party highlighted examples of sustainability initiatives that were well integrated with business management. These included
Loopla (a scheme for recycling office plastic waste), Tsunage Loopa (an environmental education program), and other initiatives illustrating our organizational
commitment to environmental sustainability.
The third-party audit in 2023 was a surveillance audit.
Internal auditsYear

Third-party audits
2021

2022

Year

2021
recertification
audit

2023

2022
surveillance
audit

2023
surveillance
audit

Sites audited

77

72

79

・First-party audit

61

56

63

Sites audited

21

14

18

・Second-party audit

16

16

16

Excellent aspect

0

0

0

・Extraordinary audit

－

－

－

Good aspect

16

10

17

Issues identified

38

26

20

Minor
nonconformity

0

0

0

・Serious nonconformity

0

0

1

32

28

16

・Minor nonconformity

14

6

5

Opportunity for
improvement

・Corrective action

24

20

14

- 60 ENVIRONMENTAL MANAGEMENTISO14001 audit(Kokuyo’s Osaka Umeda office)ISO14001 audit(Kokuyo’s Shibayama plant)

ISO14001 audit(Kokuyo Supply Logistics’ Ibaraki distribution
center)

ISO14001 audit(Kokuyo Marketing’s Yamaguchi office)ISO14001 audit(Kokuyo MVP’s Aoya plant)

ISO14001 audit(Kokuyo Logitem’s Saitama distribution center)

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, andcompleteness of the reporting. In its third-party review, Bureau Veritas Japan reviewed environmental
performance data and scope 3 emissions data pertaining to the 41 organizations that make up Kokuyo
Group.*1 It also visited workplaces to see how data was being measured and managed. Four Japanese
workplaces were visited: Kokuyo Tohoku Sales’s Ichibancho office, Kokuyo Mie plant, Kokuyo’s
Shibayama plant, and Kokuyo Logitem’s Komono distribution center. One overseas workplace wasvisited: KOKUYO Camlin’s Patalganga plant). The review identified eight excellent aspects and nine
opportunities for improvement. It also identified 31 issues requiring corrective action and 23 opaque
aspects requiring better transparency. During the review period, we rectified the issues and clarified theopaque aspects.
The review mentioned that the primary documentation serving as evidence was filed appropriately andthe data was transparent. It also mentioned certain areas for improvement, such that certain data items
were aggregated or inputted inaccurately.
In light of the issues raised, we will continue working hard to improve the accuracy and precision of
disclosures both internally and throughout our supply chains.
Year

2021

2022

2023

Excellent aspects

8

11

8

Opportunity for improvement

10

12

9

Issue requiring corrective action

43

38

31

Aspect requiring bettertransparency

0

7

23

- 61 ENVIRONMENTAL MANAGEMENT

Third-party audit of environmental performancedata at Kokuyo Tohoku Sales’s Ichibancho office

Third-party audit of environmental performancedata at Kokuyo’s Shibayama plant

Third-party audit of environmental performancedata at Kokuyo Logitem’s Komono distribution
center*1 The review covered data reporting from the following organizations

Entities included in consolidated accounting

Non-consolidated subsidiaries, 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 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 SanyoShikoku Sales Co., Ltd., Chubu Kispa, Nikkan
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., Kokuyo Hong Kong Ltd.,
Global Known Ltd., Lamex China Investment Ltd., Lamex Trading
Company Ltd., Dongguan Lamex Furniture Ltd., Lamex (S) Sales Pte.
Ltd.

KOKUYO K Heart Co., Ltd., Heartland Co., Ltd., IWAMI Paper
Industry Co., Ltd., Origin Co., Ltd., Estic

KOKUYO-IK (Thailand) Co., Ltd.

- 62 ENVIRONMENTAL MANAGEMENTLEGAL COMPLIANCE AND POLLUTION PREVENTIONENVIRONMENTAL

Legal Compliance and Pollution Prevention
Basic Concepts
We are striving to prevent environmental pollution by complying with statutes and regulations relating to the environment as well as industry
guidelines to which we have subscribed and our own standards.

Summary for 2023
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. In 2023, we discovered that some furniture products were erroneously represented in relation to labelingunder the Act on Promoting Green Procurement because the ratio of recycled plastic used did not satisfy the compliance standards. We’ll improve theaccuracy of catalog listings to ensure that such an incident never reoccurs. There were no other serious violations of laws and regulations.

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 theworld’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 respondto water-related risks.

Awareness of Water Risks
The KOKUYO Group has defined 47 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 production bases in India andThailand in water stress areas. The base in India produces stationery and painting supplies while the base in Thailand produces files and tape. We areappropriately managing and gathering information on the amount of water used in those areas.
Water risks, such as the impact on business from a shortage in water, have not yet materialized in relation to our business at the present time. Nevertheless, wewill continue to grasp local information in that area to analyze water risks. Together with that, we will appropriately manage business so that our businessactivities do not have an adverse effect on the environment.

- 63 LEGAL COMPLIANCE AND POLLUTION PREVENTION

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 FY2023.

Cubic kilometers (km 3 )●Water Usage in the KOKUYO Group and Water Usage in Water Stress Areas (2023)
KOKUYOGroupInput

KOKUYO Camlin
Total

Tarapur

Patalganga

KOKUYO-IK(Thailand)

Samba

Volume of water intake

298

62

26

25

12

19

Volume of wastewater

213

38

26

0

12

15

Public waterdrainage

40

-

-

-

-

-

Drainage tothe sewersystem

173

38

26

-

12

15

OutputInitiatives to Save Water
Over 50% of the KOKUYO Group’s water usage is within Japan. In addition, much of that water is used in the steel product painting process in the
manufacturing process. We are striving to save water by re-using cleaning water to effectively use water resources in our Shibayama Plant (Chiba), our main
manufacturing plant for office furniture. The cleaning water is evaporated by using exhaust heat from a deodorizing furnace on a circular basis. Basically, nowater is discharged. We reduce the volume of the sludge generated during the treatment process and then dispose of it appropriately.

Promoting 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 to handle 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 properties of a chemical substance that make it potentially hazardous, to a more scientific risk-based approach, which focuses insteadon 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, we started examining the risks of the substances in 2015 on a priority
basis. In 2017, we released our findings on the hazards and exposure risks in a report titled Guidelines for Managing Chemical Substances Included in
Product (Stationery Edition). In 2023, we held seminars on Japan’s Act on Control of Household Products Containing Harmful Substances and overseas
chemical substances regulations. We will continue to improve the capabilities of our employees to meet the demands of our customers such as for compliancewith chemical substance regulations and safety information disclosures.

Enforcing appropriate management and handling ofchemical substances(KOKUYO Head Office)Publicizing the harms and dangers of chemical
substances on noticeboard panels(KOKUYO Shibayama Plant)

Scanning for heavy metals using X-ray fluorescence- 64 LEGAL COMPLIANCE AND POLLUTION PREVENTIONINFORMATION DISCLOSURE AND COMMUNICATION

Environmental

Information disclosure and communication
Basic policy
We proactively share environmental information with customers and other external stakeholders to encourage engagement in environmental
conservation.

Collaborating and sharing environmental information with external organizations
We share environmental information with external stakeholders and collaborate with external organizations in addressing key environmental issues in order tocontribute toward a sustainable world. We also run a schools outreach program that prompts schoolkids to take a personal interest in environmental issues.

Participating organizations and projects
All Japan Stationery Association
In 2019, the All Japan Stationery Association launched an SDGs research committee for the purpose of guiding
efforts in the stationery industry to balance environmental and social governance with economic aspects. The
committee consists of 17 companies, and Kokuyo has chaired the committee ever since it began. In 2021, thecommittee established a basic policy on SDG action. In 2022, it established the SDG Committee. The committee thenestablished a number of working groups. There are currently four working groups: one on CO2 reduction, one on
calculating the carbon footprint of products (CFP), one on reducing plastics, and one on disclosing sustainability
information. In 2013, the committee’s main actions included drawing up, and briefing association members about, amanual for the simplified calculation of scope 1 and 2 emissions, a simplified method for calculating product-specificemissions, and guidelines for designing stationery and office supplies that use plastic.

SDG Committee

List of key associations and projects■ Osaka-fu Kogyo Kyokai [Osaka Industrial Association]: Chair of environmental action committee■ Kansai Economic Federation: Member of the environment and energy committee’s energy and environment subcommittee■ Green Purchasing Network: Trustee■ Japan Clean Ocean Material Alliance■ All Japan Stationery Association: Chair of SDG action committee■ Japan Office and Institutional Furniture Association: Chair of SDG committee■ Japan Chemical Industry Association: Member of chemical management committee- 65 INFORMATION DISCLOSURE AND COMMUNICATION

External lectures and events
Tsunage Loopa, a schools outreach program
Tsunage Loopa is an environmental education program in which schoolkids return their used notebooks. The usednotebooks are then recycled into materials used in new products. By taking part in the recycling process, the children
learn about the relationship between a circular economy and protecting the environment. In 2023, Kokuyo Group
employees visited five schools (with a total of about 400 students) to deliver Tsunage Loopa classes there. The
students who attended these classes have the role of spreading the message to their peers, creating momentum for ashift to a circular economy.
A Tsunage Loopa class at Koyama
Elementary School, Tottori Prefecture- 66 INFORMATION DISCLOSURE AND COMMUNICATION

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

KOKUYO Group Code of Conduct
The KOKUYO Group is subject to various laws and regulations when engaging in business activities. Those laws and regulations govern areas of businessincluding product quality, fair trade and other transactions, the environment, labor, health and safety, accounting standards, taxation business, bribery andinformation management. We have established the KOKUYO Group Code of Conduct which each employee must follow to engage in corporate activities inaccordance with social ethics while complying with those laws and regulations.
We use this KOKUYO Group Code of Conduct globally as the basis of our daily activities.

Key actions
Supply chain action
Rapid economic globalization has given rise to colossal multinationals. Many are extending their supply chains into developing economies in an effort todrive 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.

Personal information protection
We have established the Personal Information Protection Policy.

Rectification, redress
Whistleblowing hotline
We have a group-wide hotline (the KOKUYO Group Hotline). Employees can use the hotline to raise concerns about compliance or 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. The KOKUYO Group considers
the number of whistleblowing reports we receive to be one indicator of the effectiveness of the whistleblowing hotline. We believe a certain number ofwhistleblowing reports to be appropriate. The number of whistleblowing reports we have received through the hotline has remained constant, including thosefrom overseas, with virtually no increase or decrease over the past few years. Approximately half of the whistleblowing reports are related to management
such as harassment and assessments.

- 67 RESPECT FOR HUMAN RIGHTSSOCIALLABOR AND TALENT
To promote wellbeing inside and outside our organization, we embrace new workstyles and support the careers of diverse employees.

Workstyle Reform, Diversity, and Inclusion
Basic approach
Wellbeing is the experience of happiness and health.
We are committed to promoting wellbeing (the experience of feeling happy and healthy) inside and outside our organization. To enhance wellbeing
inside the organization (and thus promote it in society), we embrace new workstyles, fostering a workplace that is diverse and inclusive of gender,
disability, and nationality.

Actions in 2023
On the first floor of our head office, we built Hows Park, a pro-diversity office that embraces inclusive
design. From the first stage of the design process, we engaged in dialogue with a diverse spectrum oflead users, including people with hearing impairment, mental-health problems, and lower-limb
conditions, and wheelchair users to ensure that the office would be accessible and inclusive to all.

Hows Park accommodates diverse needs with theshape and height of furniture, easy visibility, andcomfortable sense of distance.

- 68 LABOR AND TALENT

Programs
Programs for 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 a period lasting from six weeks before the due date (14 weeks if amultiple pregnancy) to eight weeks after it.

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 their children 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 also be taken on an hourly basis).
Taking such leave has no impact on wage or bonus.

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, five days of leave a year or, if they have multiple care dependents, 10days of leave a year (the leave can also be taken on an hourly basis).
Taking such leave has no impact on wage or bonus.

Shorter hours

Childcare: Employees with children are entitled to take shorter work schedules until the children complete grade 3 of elementary
school.
Nursing care: Employees with dependents are entitled to take shorter work schedules for up to three years for each dependent.

Work from home

We promote a mixture of home and office working.

Complete flextime (with nopredetermined 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 the workplace regular employees who resigned because of marriage,
childbirth, childcare, nursing care, spouse relocation, overseas study, charity work, a career change, or other valid personalreasons. We believe that bringing in outside experience and insight further increases the diversity of our organization.

Re-employing mandatory
retirees

We have in place a system that, in principle, allows employees who wish to work at the Kokuyo Group after retiring at the
mandatory age of 60 to continue working as senior employees. Through this initiative, the retirees get opportunities to continue a
professional role in society after mandatory retirement. In return, they use their experience and knowledge to help younger
colleagues develop.

*These programs apply in Kokuyo and major subsidiaries.
Kokuyo-Style Hybrid WorkIn 2022, we launched Kokuyo-Style Hybrid Work. This program honors diversity while encouraging employees to engage in workstyles that improve theproductivity 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,” a term we use to describe a situation in which the one’s workstyle, learning style, and lifestyle arebalanced and embody one’s uniqueness.
For example, employees choose one of three workstyle categories (office-based, balanced, home-based) and then decide with their superiors on a workstylethat 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 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.

- 69 LABOR AND TALENT

Flextime 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 Group has embraced workstyle reform.
It is generally believed that flextime is unfeasible for the distribution industry. Nonetheless, KOKUYO Logitem introduced flextime for back-office staff in 2009
and then for distribution center staff in 2022. As well as prompting a higher uptake of flextime in delivery operations, KOKUYO Logitem has set a bestpractice model for the industry. In 2023, KOKUYO Supply Logistics introduced flextime for distribution center staff and all other employees. With flextime,
employees exercise autonomy in deciding which hours they work during busy periods. This frees up disposal time and reduces physical and mental strain. It
also sets a good example of flexible workstyle practices for the industry.

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 the Kurumin Markas 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. Thisinitiative 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 2023):
Kokuyo Co., Ltd.
Kaunet Co., Ltd.
KOKUYO Marketing Co., Ltd.

Employing People with Disabilities
Kokuyo has been an active employer of people with disabilities ever since 1940. In that year, Kokuyo
started recruiting students from a school for the deaf in Osaka (now known as Chuo School for theDeaf). The students were employed in the company’s factory in Imazato, which stood on the site of what
is now our Head Office.
A turning point in our policy for employing people with disabilities came in 2002, when we unveiled a
program of structural reform. This reform program involved spinning off our business units into newcompanies. A question we then faced was how to provide jobs in the new group companies for people
with disabilities. In September 2003, we founded KOKUYO K Heart as a “special subsidiary” (meaninga disability-friendly employer that is counted as part of the parent company). In December 2006, wefounded Heartland, a subsidiary devoted to employing people with intellectual or mental disabilities.
As of June 1, 2023, people with disabilities make up 2.38% of the group’s workforce.

- 70 LABOR AND TALENTHeartland is a special subsidiary of Kokuyo. It
employs people with disabilities and specializes in
the running of agriculture. It creates employment fora total of approximately 7,000 people withdisabilities in the region annually.

Labor and Talent
Basic approach
We aim for a cyclical process of employee growth and business growth. This approach balances two goals: expanding our businessportfolio 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

Talent Management Policy
In 2023, we established the Talent Management Policy. This policy enshrines the principle that Kokuyo’s workforce as an asset to society and that we should
help every employee achieve their potential and cultivate talent that will drive business growth and contribute toward a better society. This principle is sharedby the management and every employee.
One action we have taken in line with the policy is to launch the Talent Development Committee. This committee holds meetings across all divisions so thatmanagers can confer about the career potential of each employee.
Our systematic approach to talent development has included programs such as the 20% Challenge and the Kokuyo Marketing University. To these, we
recently added a new program, Kokuyo Academia, to further bolster talent development. The idea behind Kokuyo Academia is to give attendees an idea of
Yokoku as the source of corporate and personal growth and to help them refine the leadership and creative skills they need to make their Yokoku a reality. The
idea is also for attendees to gain confidence in their potential from what they have learned so that they will feel empowered to take on a new challenge. In
this way, Kokuyo Academia helps foster a culture of continued learning and challenge-taking (Yokoku).

Programs
In FY2018, we launched a new employee reward system. Line managers receive rank-based pay, which reflects the person’s roles and responsibilities with noregard 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 these goals (measured on
an absolute scale) is taken into account in employee evaluations in order to achieve a more differentiated approach to evaluation and treatment.
Since FY2019, we have been bolstering our talent-development infrastructure to match and promote the right people to the right jobs and to develop theirabilities. Increasingly, we promote based on merit, not seniority. In a growing number of cases, employees are promoted to line manager in their early 30s, tomiddle manager (department manager) in their late 30s, and to managing officer in their 40s.

- 71 LABOR AND TALENT

Human Resources Management Structure to Create Cyclical Process of Employee Growth and Business
GrowthOur talent-development cycle consists of four processes: 1) creating new opportunities and identifying raw, underdeveloped talent; 2) moving employees to
new positions of responsibility in a timely manner; 3) backing up employees who take on challenges; and 4) appraising employees based on multiple
viewpoints.

Actions in 2023
Creating new opportunities for challenge-taking
20% Challenge: Internal moonlighting
In 2020, to promote an empowered workplace in which employees actively pursue opportunities for professional development, we launched 20%
Challenge, a program of internal moonlighting in which participants spend 20% of their working time engaging 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 right candidate. The program runs for three to 12 months, and participants’ achievements and efforts count toward their individual
personnel evaluation. To date, approximately 260 employees have participated. These participants stepped across business and organizational boundaries
to engage in challenges such as market research for overseas businesses, strategy support, R&D solutions for digital learning, and raising employees’ ecoawareness. The idea is that employees try to divide their time 80–20 between their normal work and the new assignment, a ratio that is ideal for raising
workplace productivity without compromising one’s normal work. Through this program, we visualize workplace activity. We then identify aspects to rectify orrecalibrate through dialogues among the employees concerned and their managers and HR.

20% Challenge participants(cumulative total)

2021

2022

2023

129

189

266

- 72 LABOR AND TALENTExamples of challenge themes in 20% Challenge topics

Kokuyo Marketing University and Kokuyo Marketing Graduate School
Kokuyo Marketing University is a project-based training program for employees who graduated from university between three and 12 years ago. The
program teaches attendees to consider customers’ perspectives and to develop ideas that tap into an unmet need. The attendees acquire knowledge aboutmarketing and strategic planning. They then apply their knowledge in a project in which they create a product concept. Under the guidance of external
corporate strategists, they spend around half a year perfecting the product idea and then present it to the management. Since the program began in 2017,
more than 160 younger employees have taken on a project related to development, planning, or another area. The program continues to provide a starting
point for employee development and action. For example, attendees can enhance their 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 is a program for mid-level leaders, who are aged between 30 and 40. The program is designed to equip these
employees with strategic acumen, including the ability to objectively forecast future scenarios. During the program, attendees are presented with 10-yearbusiness themes determined by the management. Under the guidance of external marketing professionals, they spend around nine months engaging in teamwork to perfect their growth strategy for Kokuyo and then present it to the management. Since the program’s launch in 2019, more than 110 employees haveparticipated. Many of the program graduates are playing an active part in the company after seizing opportunities to take on the challenge of an even largerrole such as through company-wide projects after completing the program.
2021

2022

2023

Kokuyo Marketing University
Participants (cumulative total)

118

143

168

Kokuyo Marketing Graduate School
Participants (cumulative total)

73

93

113

Kokuyo Marketing University
Kokuyo Marketing University, seventh year (2023):
Group discussion

Kokuyo Marketing Graduate School
Kokuyo Marketing Graduate School, third year
(2023): A final presentation session- 73 LABOR AND TALENT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 of disaster and other measures are thefoundations 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 and health 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 physical wellness of every employee.

【Code of Conduct】
1. Comply with all relevant laws and regulations (such as the Industrial Safety and Health Law) as well as internal guidelines andstandards.
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 the creation of a transparent culture inwhich everyone participates.

Systems
KOKUYO Group construction industry and plants health-and-safety conferences
During Japan’s National Safety Week* (first week of July), we organize health-and-safety conferences to enhance safety-consciousness across the corporategroup.
The conference in fiscal 2023 was the first conference held after Covid-19 was downgraded to a class-5 disease. This meant that, unlike in the previous
conference, the attendees could recite on mass a pledge to achieve zero safety incidents. The attendees’ voices reverberated throughout the venue.

*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 voluntaryactions 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 at seven venues for our construction
partners in the Kokuyo Group. It does so on the belief that employee health and safety is foundational to business growth.Unlike the conferences in theprevious three years, the conferences in FY2023 dispensed with attendance restrictions and a requirement to wear facemasks. The first half began withpresentations about best practices during the previous year followed by the presentation of awards to exemplary health and safety staff. For the second
half, a guest speaker delivered a presentation about health and safety. The conferences concluded with attendees reciting on mass the conference slogan
and pledging to make the ensuing year incident-free.

- 74 EMPLOYEE HEALTH AND SAFETY

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. The safety conferences in FY2023 were held with noattendance restrictions, as in pre-pandemic times. The conferences presented occupational accident data from the previous fiscal year, gave briefings
about safety initiatives, delivered themed training, and declared a pledge on safety.
We will also continue to provide 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
Safety conferences and safety patrols are organized in a hybrid format by the workshops held in Osaka that develop our products and inspect quality andby Shinagawa X-stage.
The purpose is to keep employees ever mindful about occupational accident prevention and about what needs to be done to prevent such accidents,
particularly those related to chemical substances, which are frequently used not just in plants but also in product development processes. In FY2023, theconferences and patrols used a hybrid format. This 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 in raising safety awareness among many employees.

Initiatives in 2023
Meetings for Plants in the KOKUYO Group to Exchange Opinions in 2023
In November 2023, Kokuyo Product Shiga hosted a meeting to discuss solutions for occupational issues. The meeting was attended by supervisors and HR
managers from the five major production plants in the Kokuyo Group.
Over the years, meetings of the Kokuyo Group Central Safety Health Committee and the production plants have highlighted a wide range of issues, not justthose related to health and safety. These issues must be addressed to prevent occupational accidents, but they cannot be fully solved by a single person’s
efforts alone. As such, occupational safety issues constitute an urgent HR concern for the Kokuyo Group as a whole. Accordingly, the Kokuyo Group Central
Safety Health Committee and the Group HR and General Affairs Support Unit organized the meetings so that HR and other corporate divisions can work
together and discuss solutions.
Step 1
Identify the issues that are important to each plant’s HR manager
Step 2
Arrange these issues into the categories hiring, training, and workplace culture, and discuss potential solutions with HR and other corporate divisions
Step 3Clarify the solutions each plant will adopt
To ensure that the legacy of the meeting is more than empty words, we will keep taking action until the issues are resolved.

Foreperson leadership training
To help develop the talent pool for plants over the medium and long term, the KOKUYO Group Central Safety Health Committee and KOKUYO MVP (one ofour manufacturing subsidiaries and plants) jointly ran workshops for training leaders and sub-leaders, with an emphasis on communication skills.
We plan to roll this leadership program out to other plants. In this program, attendees will practice getting their message across and engaging in dialogue
effectively so that they can foster a positive workplace culture that keeps employees feeling secure and confident.

- 75 EMPLOYEE HEALTH AND SAFETYEMPLOYEE HEALTHEMPLOYEE HEALTH AND SAFETY

Employee health
Basic Concepts【Wellbeing: 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 our sustainability 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 leadthe way in sustainable business practices. A key part of this strategy is promoting wellbeing both within and outside our organization.
Three main strategies for improving wellbeing:
・Pitch ideas for new workstyles
・Promote diversity, inclusion, and innovation
・Promote employee health and engagement

Wellbeing (a state of being healthy and happy) is critical to building a healthy workplace. We therefore support employees’ physical and mental healthand 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 for promoting wellbeing in society at large.

- 76 EMPLOYEE HEALTH AND SAFETY

Systems
Six core actions for building a healthy workplace

Organizational framework for building a healthy workplace
In FY2022, we established the Health Management Taskforce within the Subcommittee for Building an Organizational Framework for Sustainability andPromoting 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 healthmanagement staff, group company members involved in building a healthy workplace, health insurance associations, labor unions, and the HealthManagement Taskforce.

*

View data on health-promotion performance- 77 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.

Initiatives in 2023
Recognition as a 2024 Certified Health & Productivity Management Outstanding Organization (White
500) and a 2024 Certified Heath & Productivity Management Outstanding Organization (Large Enterprise
Category)
On March 11, 2024, 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 theofficial designation “2024 Certified Health & Productivity Management Outstanding Organization(White 500).” On the same date, KOKUYO Marketing earned a separate accolade under the same
program (“Health and Productivity Management Outstanding Organization” 2024, large enterprise
category). The program (officially translated as “2024 Certified Health & Productivity Management
Outstanding Organizations Recognition Program”) gives recognition to companies that make exemplaryefforts toward a healthy and productive workplace. We will continue to promote wellbeing in line with
the KOKUYO Health and Productivity Declaration, which we established in October 2019 and updated
in 2022.

- 78 EMPLOYEE HEALTH AND SAFETY

Employee Health Goals: 2023 Results
In 2013, we set concrete goals for promoting healthy behaviors that help prevent lifestyle diseases. Since then, our internal health insurance associations haveworked with the health management office on actions to meet these goals.
The health-promotion activities include tracking employees’ daily steps and weight, organizing fun walking campaigns, and running diet seminars inpartnership with public health centers. We also encourage our employees to undergo regular screening for colorectal 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 wantthem.
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 healthbehaviors and an e-learning course.

Showcasing our expertise in health and productivity management through THE CAMPUS, a space forexperimenting with new workstyles and lifestyles
In February 2021, we opened THE CAMPUS in Shinagawa, Tokyo. THE CAMPUS is a space for experimenting with new workstyles 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 long-term social issues. We will continue to use THE CAMPUS to widely
showcase to society the knowledge and know-how of health and productivity management that KOKUYO has put into practice and proposals to protect themental and physical health, safety and security of employees and visitors.

Main Proposals to Protect the Mental and Physical Health, Safety and Security of Employees and Visitors
Take measures to address mental health issues which are increasing with the advancement of telecommuting
Increase communication, promote the building of new relationships beyond the boundaries of purposes and organizations, and showcase
spaces, furniture, fixtures and stationery which can control concentration, immersion and relaxation according to the purpose
Take measures to prevent infectious diseases
Take measures to prevent droplet-based, contact-based and aerosol-based infections based on experimental verification, and visualize thebehavior of those infected with diseases and close contacts based on behavioral analysis using the IoT etc.

The above initiatives have been recognized. This is the first complex in Japan to have acquired the WELL Health-Safety Rating* which evaluates health andsafety according to global standards.

*The WELL Health-Safety Rating for Facility Operations and Management provides third-party verification that the certified building is clean and safe. The rating was launched by theInternational WELL Building Institute in June 2020 in response to the spread of Covid-19. The criteria for the rating include anti-Covid measures, emergency preparedness programs, cleaningand sanitization procedures, and air and water quality management.

Other initiatives
Management reform initiatives
In FY2023, we positioned management reform by management and managers in particular as an urgent matter for mid- to long-term sustainable growth.
Accordingly, we worked to put into practice a partnership-based management style. Specifically, we developed the format and structure of 1on1 in
KOKUYO through a 1on1 trial for all management and managers to solve the issues which arise in the course of engaging in business. We also put into
practice business follow-up activities to eliminate imbalances in business and to create an environment to engage in high-market value work. This is an
initiative in which roles and responsibilities are determined for each layer. The upper layers proactively involve members. The concerns facing each arethen quickly resolved through man-hour forecasting and grasping the situation in a timely manner. These efforts have had an effect. Overtime hours havesignificantly reduced and that has led to changes in how time is used. We will work to entrench this initiative in 2024. At the same time, we will engage inefforts to lower the barriers to taking vacations.

- 79 EMPLOYEE HEALTH AND SAFETY

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 thefollowing ways.
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 the cost of various health supplies. In FY2023, our employees redeemed a collective total of approximately 236 million yen in points.
It encourages employees to promote their own healthWe operate a program which allows employees to earn points which they can use to receive subsidies under the aforementioned choice-based programof employee welfare according to records of their walking and daily lifestyle habits. The aim of this program is to encourage employees to practice healthpromotion by making it a habit to engage in light exercise and to take actions with an awareness of their health in their daily lives. We have also beenrunning the Walking Campaign for a limited time to encourage even more employees to participate in the program such as by competing over which teamwalks the greatest number of steps.
We ran a wellness program which provides seminars, surveys and individual guidance by trainers in a set to improve and enhance the health literacy of
employees about physical ailments.
Program to ensure the full use of regular screenings
This is a program to support employee health. We hold seminars with industrial physicians before and after employees undergo their regular healthcheckups so that the results of those checkups can lead to improvements for the next time. We hold these seminars online so that the families of employees
can also participate in them.
Smokefree workplace
Data from Japan Tobacco’s annual Japan Smoking Rate Survey indicates a high rate of smoking among male employees in our 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 risks of smoking.

Health Insurance Association: Increased Subsidy for Cancer Screening
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 to colorectal 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 have introduced 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 to promote fixed-point observationof 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 organizational data.

- 80 EMPLOYEE HEALTH AND SAFETY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 to address these risks. To that end, we are enhancing ourrisk sensitivity and developing a risk management program involving both management and frontline staff.

Risk Management Structure
We have the Risk Management Committee, a body that advises the President and CEO on risk management. The committee ascertains and assesses a broad
set of risks that could potentially impact Kokuyo Group and then spearheads efforts to control (avoid, mitigate, transfer, accommodate) these risks. andreports its findings to the CEO. If the committee determines that a risk has a high level of threat or urgency, it informs the Board of Directors and Audit andSupervisory Committee.
Our risk management structure is designed to enable an integrated approach in which the management of risks affecting Kokuyo Group as a whole isintegrated with business strategy, with the right balance between risk and return. It is also designed so that risk management frameworks and processes arecoordinated with governance and internal controls. To that end, in non-emergency times, the committee holds regular quarterly meetings to provide unified
management of risks that have occurred in the Kokuyo Group and to monitor corrective/preventive action and risk response planning as part of an ongoing
PDCA cycle.
Information security risks and occupational risks are regularly monitored by the Risk Management Committee’s subcommittees.
For information security risks, we evaluate vulnerabilities in our software, operating systems, and network devices, including those in overseas sites. For
occupational risks, we use an employee satisfaction survey, among other data, to identify occupational risks in group companies. In these ways, we aremanaging each risk as part of an organization-wide effort to ensure effective and efficient risk management.

Business risks affecting Kokuyo
The following table shows the risks we have identified and the measures we are taking to address these risks. The risks are divided into external risks and risks
related to business operations. In the knowledge that the scope of our business will change as we expand the reach of our business fields and nurture new
business ideas, we will stay vigilant so that we can detect new risks relevant to our business operations and take the appropriate action.

- 81 RISK MANAGEMENTRisks affecting Kokuyo and Measures to address these risks
Business Risks

Economic Risks

Identified risks
Economic fluctuations in Japan could affectcorporate earnings and in expenditure on fixed
assets.
Economic uncertainties prevail in China and otherimportant overseas markets

Market Risks

Shift business model from tangibles to intangibles
Go further in overseas expansion and improvecoordination with local subsidiaries

Use portfolio management to ensure optimal
allocation of corporate assets

The quality of our services might diminish amid staff
shortages in logistics and construction

Minimize workload in logistics and construction
without sacrificing business continuity and growthprospects

Risks Associated with
Changes in Fair Value

Fluctuations in financial markets reduce the fair valueof our investment securities

Regularly assess holdings to determine whether it isworth continuing to hold them; consider selling andoffloading holdings

Risks Associated with
Natural Disasters andInfectious Disease
Outbreaks

A major natural disaster could cause a suspension inbusiness activities or a reduction in business activities
in Japan or overseas

Engage in business continuity planning and regularly
review the plan to ensure it is effective

Compliance Risks

A violation of regulatory requirements (related toquality, environment, labor, etc.) might be detected
or confirmed

Quality Risks

A product recall could harm our performance andreputation

Implement and operate a quality management systemaligned with ISO 9001

Performance is vulnerable to fluctuations in raw
material prices and exchange rates

Use forward exchange agreements, optimize local
procurement ratios, and diversify suppliers

Deficiencies in ESG could harm our performance andreputation

Use Sustainable Procurement Guidelines to promotemutual business growth with supply-chain partners

External Risks

Procurement Risks

Risks Related toBusiness Operations

Market decentralization and digitalization diminish
Kokuyo Group’s competitive advantage

Measures

Talent and Labor
Risks

Information Security
Risks

Investment Risks

Delays in attracting and training talent could stuntbusiness growth
An occupational accident or employee health issue
could harm our performance or reputation

Performance could be harmed by a cyberattack thatcauses system failure or the leakage of sensitive
business information or customers’ personal data

Macroeconomic changes could harm theperformance of companies in our investment portfolio

Establish the Kokuyo Group Code of Conduct,continually spread awareness of the code
Ensure regulatory response by regularly monitoring
regulatory developments and compliance with thelatest regulations

Follow the Talent Management Policy and use
Kokuyo Academia (a talent development
organization) to expedite investments in talentdevelopment
With the guidance of the Labor Subcommittee,
provide employees enough disposable time tosafeguard their wellness and plan their career
Use vulnerability analysis to enhance security, havethe Information Security Subcommittee regularly
monitor information security
Improve system failure detection and cyber-defenses,
back up data regularly
Set rules on the handling of customer and personaldata, inform employees about information security
risks
Consult outside experts during the investment vetting
process, keep improving the monitoring process

Promoting compliance
Kokuyo Group Code of Conduct
Operations across the Kokuyo Group are governed by a range of laws and regulations, including those related to quality, business transactions (including fairtrade), environmental impact, labor, health & safety, accounting and tax, bribery, and information management. To ensure that we always comply with theselaws and regulations and uphold high ethical standards in all 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. Among other things, the code emphaticallyprohibits employees from bribing public-sector or government officials.

- 82 RISK MANAGEMENT

Whistleblowing hotline
We have a group-wide hotline (the Kokuyo Group Hotline). Employees can use the hotline to raise concerns about compliance or 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. For
workplaces in Japan, we have provided a hotline to a third-party whistleblowing service to help protect the anonymity of whistleblowers. For workplaces
overseas, we provide a hotline that any member of the Kokuyo Group can use. We believe that if the hotline receives a certain amount of inquiries/reports ina given year, that is a sign that it is working effectively. In FY2023, the hotline received 20 inquiries/reports.
In June 2024, we made the Kokuyo Group Hotline available to our trading partners to contribute to healthy trading relationships and mutual prosperity.

Business Continuity Planning
We have developed a business continuity plan, which we continually review and revise as part of a business continuity planning lifecycle. The plan includes
measures for maintaining a stable supply of goods when an emergency such as a natural disaster disrupts operations in our plants or offices. Mindful of thethreat of catastrophic events such as earthquakes, extreme storms, flooding, fires, major power outages, and infectious disease, we have reaffirmed theimportance of getting the initial responses right and minimizing the damage from such calamities. We use emergency manuals, emergency drills, and similarmeans to ensure that every employee will act safely in an emergency to safeguard human life.
In view of the rising concern for sustainability (ESG, SDGs), our emergency power sources include solar power systems and reserve batteries.

Initiatives Regarding Management of Intellectual Property Rights
As one of the strategies to differentiate ourselves from competitors, the KOKUYO Group promotes the following initiatives to encourage 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 toensure 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 disputeoccur, the unit will coordinate with the management to enable a swift and satisfactory 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 violation of rights held by others. In addition, awarenessraising activities for respecting the intellectual property rights of others and improving awareness of legal compliance are conducted for development
departments through training as the necessity arises and as 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 the superiority of the products inthe market and focus on creating and discovering inventions that contribute to differentiation from competitors’ products. We also aim to adhere to Sec. 35of the Patents Act and establish an incentive system for employee invention as an internal rule, with the aim of increasing customer satisfaction andencouraging inventions that strengthen the Group’s development.

Initiatives Regarding Information Security
The KOKUYO Group undertakes the establishment of an information security management system, adherence with relevant laws and regulations, 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.
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, as well as loss,
falsification and leakage, etc. of information assets.
4）Regulations and rules regarding the management and use of information assets are formulated and revised, and educationis 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.

- 83 RISK MANAGEMENT

Governance

KOKUYO Group Hotline (For Supply Chain Partners)
The KOKUYO Group has established and is operating a whistleblowing hotline which can be used by our supply chain partners. The purpose of the hotline isto build healthy relationships with our supply chain partners and to achieve mutual sustainable growth.
We ask you to report to us any legal violations or wrongdoing by organizations or individuals in the KOKUYO Group you notice. In this way, we are looking
to detect problems early, correct them early and then prevent their recurrence.

Applicable Users
Officers or employees (including contract employees, part-time employees and temporary employees) of Japanese supply chain partners which have enteredinto a contract with a KOKUYO Group company in Japan

Applicable Report Contents
Legal violations, wrongdoing, violations of the KOKUYO Group Code of Conduct and acts which may be considered as such by organizations or individuals
in the KOKUYO Group*We do not accept reports on matters internal to supply chain partners that are not related to the KOKUYO Group.
*We accept anonymous reports. However, please tell us the name of the organization or individual causing the problem.
How to Make a Report and Report Flow
Please send your report to the e-mail address below.
kokuyo(at)risk-hotline.com*We have used “(at)” in place of “@” in the e-mail address to prevent spam. Please replace the “(at)” with “@” to when sending your e-mail.
We entrust the reception of reports to Security Protection Network Co., Ltd. Information such as your name and the supply chain partner’s name are notshared with the KOKUYO Group without your consent. Investigations into the contents of your report and consideration of our response take place within the
KOKUYO Group. In addition, upon confirming your wishes, we may respond in cooperation with our supply chain partners.

- 84 RISK MANAGEMENTWhen a Report Is Received
・We will not treat whistleblowers or supply chain partners disadvantageously due to making a report.
・Please make your report upon disclosing your name and supply chain partner’s name in principle so we can conduct a detailed investigationand provide feedback. Even in such cases, information such as your name and supply chain partner’s name will not be shared with the KOKUYOGroup without your consent. Please understand in advance that we may not be able to fully investigate or take appropriate measures if you
make your report anonymously.
・The contents of the reports will not be shared with the KOKUYO Group without your approval. If you do not wish to disclose information such as
your name and supply chain partner name, the information will be shared in a form which does not identify you unless you indicate otherwise to
the hotline. Moreover, those involved in the KOKUYO Group Hotline are bound by the duty of confidentiality.
・We will not accept reports which slander or libel individuals, false reports and reports based on improper purposes under any circumstances.
・The KOKUYO Group will conduct an investigation if we determine one is necessary for the contents of your report. If you have any materials ordata related to the contents of your report, please provide them to us. (We will not be able to conduct the necessary investigation if the content
of your report is unclear.) We may conduct the investigation in cooperation with our supply chain partners.
・In principle, we will not conduct an investigation against your wishes. However, if the contents of your report constitute a serious violation oflaws or ordinances, or if it is deemed important by the KOKUYO Group, we may conduct an investigation without obtaining your consent.
・The feedback we will provide in response to your report is intended only you. Please do not use part or all of the contents elsewhere or reuse it.

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

Reflecting Customer Opitions

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

Number of Executives and Directors

Number of Members of the Audit &Supervisory Board

Number of employees

2019

2020

2021

2022

2023

InsideNon-consolidated

4

3

3

2

2

OutsideNon-consolidated

3

4

4

4

4

Total

Non-consolidated

7

7

7

6

6

InsideNon-consolidated

0

1

1

1

1

OutsideNon-consolidated

3

2

2

2

2

Total

Non-consolidated

3

3

3

3

3

Male

Non-consolidated

1,631

1,634

1,601

1,452

1,480

FemaleNon-consolidated

583

607

606

610

662

Total

Non-consolidated

2,214

2,241

2,207

2,062

2,142

- 86 SOCIETY PERFORMANCE DATA

Employee Composition: By Gender
Subject

Number of employees (KOKUYO Group)

2019

2020

2021

2022

2023

Male

Consolidated

4,946

4,899

4,915

4,645

4,624

FemaleConsolidated

2,015

1,983

1,910

2,219

2,307

Total

Consolidated

6,961

6,882

6,825

6,864

6,931

Employee Composition: By Contract type and by Gender
Subject

2019

2020

2021

2022

2023

Total number of employees ※1

Consolidated

6,961

6,882

6,825

6,864

6,931

Non-regular employees ※1

Consolidated

1,832

2,333

2,711

4,097

3,785

Percentage of non-regular employees ※1

Consolidated

20.83

25.31

28.43

37.38

35.32

Male

Five main group companiesof KOKUYO

2,494

2,511

2,511

2,480

2,473

FemaleFive main group companiesof KOKUYO

829

888

928

960

1,029

Total

Five main groupcompanies of KOKUYO

3,323

3,399

3,439

3,440

3,502

Male

Five main group companiesof KOKUYO

253

268

256

263

239

FemaleFive main group companiesof KOKUYO

10

8

11

14

19

Total

Five main groupcompanies of KOKUYO

263

276

267

277

258

Male

Five main group companiesof KOKUYO

135

105

83

60

58

FemaleFive main group companiesof KOKUYO

95

102

101

91

88

Total

Five main groupcompanies of KOKUYO

230

207

184

151

146

Male

Five main group companiesof KOKUYO

111

118

112

133

123

FemaleFive main group companiesof KOKUYO

163

180

188

195

188

Total

Five main groupcompanies of KOKUYO

274

298

300

328

311

Male

Five main group companiesof KOKUYO

186

142

128

183

203

FemaleFive main group companiesof KOKUYO

347

167

146

199

261

Total

Five main groupcompanies of KOKUYO

533

309

274

382

464

Regular employees

Senior employees

Contracted employees

Part-time/casual employees

Temporary 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.

*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.

- 87 SOCIETY PERFORMANCE DATA

Employee Composition: By Contract Type and by Region
Subject

Regular employees

Senior employees

Contracted employees

Part-time/casual employees

Temporary employees

2019

2020

2021

2022

2023

Within Japan

Consolidated

4,090

4,145

4,183

4,218

4,294

Overseas

Consolidated

2,475

2,347

2,308

2,646

2,637

Total

Consolidated

6,565

6,492

6,491

6,864

6,931

Within Japan

Consolidated

300

322

308

328

315

Overseas

Consolidated

4

4

2

18

19

Total

Consolidated

304

326

310

346

334

Within Japan

Consolidated

594

564

598

631

654

Overseas

Consolidated

45

36

70

533

512

Total

Consolidated

639

600

668

1,164

1,166

Within Japan

Consolidated

584

553

571

575

542

Overseas

Consolidated

37

4

2

21

4

Total

Consolidated

621

557

573

596

546

Within Japan

Consolidated

589

379

331

434

511

Overseas

Consolidated

1,401

974

1,162

1,557

1,228

Total

Consolidated

1,990

1,353

1,493

1,991

1,739

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

Number of employees by age group

Average tenure (years)

Average length of continuous service(years)

2019

2020

2021

2022

2023

Under 30

Five main groupcompanies of KOKUYO

423

470

469

465

506

30s

Five main groupcompanies of KOKUYO

579

591

595

619

665

40s

Five main groupcompanies of KOKUYO

1,233

1,150

1,076

965

894

50s

Five main groupcompanies of KOKUYO

1,086

1,188

1,299

1,379

1,439

60s or older

Five main groupcompanies of KOKUYO

265

276

267

0

1

Male

Five main groupcompanies of KOKUYO

46.57

46.8

47.22

45.8

45.77

FemaleFive main groupcompanies of KOKUYO

39.33

39.32

39.79

40.05

39.97

Average

Five main groupcompanies of
KOKUYO

44.87

44.98

45.34

44.21

44.07

Male

Five main groupcompanies of KOKUYO

20.7

20.9

21.31

19.94

19.78

FemaleFive main groupcompanies of KOKUYO

14.06

13.83

14.05

14.16

13.7

Average

Five main groupcompanies of
KOKUYO

19.14

19.18

19.47

18.34

18

*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.
- 88 SOCIETY PERFORMANCE DATA

Employee Composition: By Nationality
Subject

2019

2020

2021

2022

2023

Non-Japanese employees
in the KOKUYO Group

Five main group companiesof KOKUYO

12

11

11

12

28

Non-Japanese employees
at KOKUYO

Non-consolidated

12

11

9

10

25

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

2019

2020

2021

2022

2023

Number of employees with disabilities

Group companies dedicated to
employing people with disabilities

128

129

134

134

137.5

Percentage of employees withdisabilities

Group companies dedicated to
employing people with disabilities

2.31

2.3

2.37

2.33

2.38

Breakdown of New Hires
Subject

Number of fresh graduate hires

Number of mid-career hires

2020

2021

2022

2023

Male

Five main group companiesof KOKUYO

33

40

28

35

42

FemaleFive main group companiesof KOKUYO

37

40

18

18

29

Total

Five main groupcompanies of KOKUYO

70

80

46

53

71

Male

Five main group companiesof KOKUYO

32

28

23

47

81

FemaleFive main group companiesof KOKUYO

21

23

24

26

59

Total

Five main groupcompanies of KOKUYO

53

51

47

73

140

KOKUYO

25

22

29

43

ー

Male

Five main group companiesof KOKUYO

1.60

1.96

1.39

1.91

2.59

FemaleFive main group companiesof KOKUYO

2.95

1.81

1.56

2.65

1.87

Total

Five main groupcompanies of KOKUYO

1.92

1.93

1.44

2.11

2.4

Percentage of mid-career hires (%)

Turnover rate

2019

*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.

- 89 SOCIETY PERFORMANCE DATA

Managerial Appointments: By Gender
Subject

2019

2020

2021

2022

2023

Male

Five main group companiesof KOKUYO

20

22

20

18

19

FemaleFive main group companiesof KOKUYO

0

1

2

2

2

Male

Five main group companiesof KOKUYO

63

65

77

95

198

FemaleFive main group companiesof KOKUYO

4

4

2

2

5

Male

Five main group companiesof KOKUYO

750

732

768

808

668

FemaleFive main group companiesof KOKUYO

54

55

69

78

85

Male

Five main group companiesof KOKUYO

1,118

1,066

1,034

1,009

1,016

FemaleFive main group companiesof KOKUYO

273

288

314

337

361

Total

Five main groupcompanies of KOKUYO

2,283

2,234

2,286

2,349

2,354

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.
Managerial Appointments: Percentage of Managerial Posts Occupied by Women
Subject

2019

2020

2021

2022

2023

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

Five main groupcompanies of KOKUYO

6.66

6.89

7.75

8.14

9.41

Executives andhigherFive main groupcompanies of KOKUYO

4.76

8.33

9.09

10

9.52

Department heads

Five main groupcompanies of KOKUYO

5.97

5.80

2.53

2.06

2.46

Section chiefs

Five main groupcompanies of KOKUYO

6.72

6.99

8.24

8.8

11.29

Sub-section chiefs

Five main groupcompanies of KOKUYO

19.63

21.27

23.29

25.04

26.22

Total

Five main groupcompanies of
KOKUYO

14.54

15.62

16.93

17.84

19.24

managerial posts (sub-section chief orhigher) 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.

- 90 SOCIETY PERFORMANCE DATA

Managerial Appointments: (Number of Non-Japanese Employees)
Subject

2019

2020

2021

2022

2023

Executives andhigherFive 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

3

3

3

4

4

Sub-section chiefs

Five main groupcompanies of KOKUYO

7

6

5

5

5

Total

Five main groupcompanies of
KOKUYO

10

9

8

9

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

2019

2020

2021

2022

2023

Executives andhigherFive 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

0.37

0.38

0.36

0.45

0.45

Sub-section chiefs

Five main groupcompanies of KOKUYO

0.50

0.44

0.37

0.37

0.37

Total

Five main groupcompanies of
KOKUYO

0.44

0.40

0.35

0.38

0.38

Percentage of managerial posts
occupied by non-Japanese 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.
Working Hours, Paid Leave Takeup Rate
Subject

2019

2020

2021

2022

2023

Total working hours per year

Five main group companies of
KOKUYO

2060.62056.72092.52087.72023.2

Non-prescribed working hours per year

Five main group companies of
KOKUYO

256.3

226.9

260.3

269.1

237.2

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

Five main group companies of
KOKUYO

23.5

17.4

24.0

25.2

19.0

Paid leave uptake rate (%)

Five main group companies of
KOKUYO

61.40

48.9

48.4

54.3

61.7

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

37,40835,562

39,10742,95554,554*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.

- 91 SOCIETY PERFORMANCE DATA

Number of Employees on Childcare Leave
Subject

Employees on childcare leave

2019

2020

2021

2022

2023

Male

Five main group companiesof KOKUYO

6

12

26

35

44

FemaleFive main group companiesof KOKUYO

60

58

72

70

66

Total

Five main groupcompanies of KOKUYO

66

70

98

105

110

*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 long-term
care

2019

2020

2021

2022

2023

Male

Five main group companiesof KOKUYO

3

1

0

0

0

FemaleFive main group companiesof KOKUYO

1

1

1

0

1

Total

Five main groupcompanies of KOKUYO

4

2

1

0

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.

- 92 SOCIETY PERFORMANCE DATAHealth management
Subject

2019

2020

2021

2022

2023

Regular health checkup attendance rate (%)

ー

99.6

98.6

99.4

99.6

99.5

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

ー

1,222

1,551

3,482

4,871

5,226

Regular health checkup finding rate (%)

ー

27.5

19.8

29.5

29.0

19.6

Percentage of employees receiving full medical
checkup (%)

ー

87.3

70.5

75.8

78.0

ー

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

ー

98

98

98

98

98

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

ー

34

39

47

42

46

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

ー

139

161

144

149

142

Response rate for stress check survey (%)

Employees of companies that conduct a stresscheck survey

94.8

96.4

95.9

94.1

95.6

Stretch check score (deviation value) ※4

Employees of companies that conduct a stresscheck survey

54

55

54

49

55

Percentage of employees with poor mental
health(with severe stress) (%) ※4

Employees of companies that conduct a stresscheck survey

5.5

4.8

5.6

9.3

11.9

Number of employees who took leave due topoor mental health

※5

10

16

10

16

25

Number of employees who took leave due toother illnesses

※5

11

9

2

5

6

Number of employees who retired due to poor
mental health

※5

3

10

1

5

3

Number of employees who left due to other
health issues

※5

6

6

8

2

7

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

Kokuyo (including what was once Ket), Kaunet

ー

2.27

1.38

1.09

ー

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

Kokuyo (including what was once Ket), Kaunet

ー

ー

ー

21

ー

Employee engagement score (deviation
value) ※3

Employees of companies that conduct a stresscheck survey

49

49

50

51

51

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

Kokuyo (including what was once Ket), Kaunet

23.8

25.3

ー

33

ー

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

Kokuyo (including what was once Ket), Kaunet

ー

ー

ー

90

ー

*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 2023.
*5 Kokuyo (including what was once Ket), Kaunet, Kokuyo Logitem, Kokuyo Supplies Logitem, Kokuyo Marketing.

- 93 SOCIETY PERFORMANCE DATA

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.
2019

2020

2021

2022

2023

Consolidated factories

2

5

1

6

6

Mie Factory

1

0

0

0

2

Shibayama Factory

0

0

0

1

3

KOKUYO Product Shiga

0

0

0

0

0

KOKUYO MVP

1

3

1

5

0

IWAMI Paper Industry

0

1

0

0

1

Consolidated factories

0.85

2.33

0.44

2.61

2.69

Mie Factory

2.82

0

0

0

3.04

Shibayama Factory

0

0.02

0

1.43

4.53

KOKUYO Product Shiga

0

0

0

0

0

KOKUYO MVP

2.16

6.79

2.14

11.19

0

IWAMI Paper Industry

0

6.67

0

0

7.78

Consolidated factories

0.05

0.02

0

0

0.07

Mie Factory

0.15

0

0

0

0.04

Shibayama Factory

0

1.83

0

0

0.10

KOKUYO Product Shiga

0

0

0

0

0

KOKUYO MVP

0

0.09

0.01

0.00

0

IWAMI Paper Industry

0

0.03

0

0

0.49

Consolidated factories

132

63.5

8

32

192

Mie Factory

130

0

0

0

34

Shibayama Factory

0

12

0

26

82

KOKUYO Product Shiga

0

0

0

0

0

KOKUYO MVP

2

46.5

8

6

0

IWAMI Paper Industry

0

5

0

0

77

Number of work-related accidents

Work-related accident frequency rate(%) ※1

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

Workdays lost due to work-related accidents*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.

- 94 SOCIETY PERFORMANCE DATAENVIRONMENTAL PERFORMANCE DATADATABANKENVIRONMENTAL PERFORMANCE DATA
■Reporting Period
Fiscal 2023 (January 1 to December 31, 2023)■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

Non-consolidated Subsidiaries and Affiliates

KOKUYO Co., Ltd.

Japan

Overseas

Kaunet Co., Ltd., KOKUYO Marketing Co., Ltd., KOKUYOSupply Distribution 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 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., KISPA Inc., NIKKAN 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 Hbd, KOKUYO Vietnam TRADING Co., Ltd.,
Kokuyo Camlin Limited, Kokuyo Hong Kong Ltd., Global Known
Ltd., Lamex China Investment Ltd., Lamex Trading Company Ltd.,
Dongguan Lamex Furniture Ltd., Lamex (S) Sales Pte. Ltd.

KOKUYO K Heart Co., Ltd., Heartland Co., Ltd., IWAMI Paper
Industry Co., Ltd., Origin Co., Ltd., ESTIC CORPORATIONKOKUYO-IK (Thailand) Co., Ltd.

Scope of Report: KOKUYO Co., Ltd., 34 consolidated subsidiaries, six non-consolidated subsidiaries and affiliates (192 locations)- 95 ENVIRONMENTAL PERFORMANCE DATA

2023 Results
Goals and Results for 2023
Environmental Policy
Goal
Prevention of global
warming*Domestic consolidated
subsidiaries, Kokuyo K Heart,Heartland

Result

Goal
met?

Reduction of CO 2 emissions
Total year-on-year change in volume: -7.2%(when production is excluded: -13.0%)-13.5%(reduction efforts reduced emissions by -15.1%)

Yes

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

Per unit of sales: -13.6%

Yes

Resource Conservation andRecycling

Improve recycling rate in relation to total waste volume
Business offices: 95.9% and overConstruction sites: 82.3% and overBusiness offices: 93.8%

NoConstruction sites: 81.8%

No

Procurement, development,
and provision of ecofriendly products

Maintain eco x zero

Maintained

Yes

Information disclosure andcommunication

Publication of CSR report 2023

Publication of CSR report 2023

Yes

ISO 14001: Regular inspection in 2015

Regular inspection results
Strong point: 0 cases
Good points: 17 cases
Matters pointed out for improvement: 0 cases
Opportunities for improvement: 16 cases

Yes

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 environmental load and correspond to thefollowing 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 each fiscal year can be
determined.
Environmental Friendliness Efficiency Indicators*The chemical substances have been calculated according to the volume of chemical substances designated as class 1 under the PRTR Law handled by sites (in Japan) which are required toreport data under the PRTR Law.
*The actual values from April to December 2023 have been given for the volume of chemical substances handled in 2023 in response to the revision to the PRTR Law.
*CO2 (greenhouse gas emissions) from 2019 have been calculated according to the adjusted emission factor for each power company.

- 96 ENVIRONMENTAL PERFORMANCE DATAJEPIXThe Japan Environmental Policy Priorities Index (JEPIX) is a method of quantifying the individual amountof 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 theenvironmental 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 ofemissions (environmental friendliness factor), and then obtaining the sum total of them all.
JEPIX

Emissions of soot and smoke (SOx and NOx)designated by the Air Pollution Control Act

SOx
NOx

2021

2022

2023

-

-

-

0.30

0.13

0.11

(Unit tons)(Millions [EIP])

2019

2020

2021

2022

2023

Landfill waste

50.2

39.8

33.8

48.3

82.0

Photochemical oxidants

0.2

0.1

0.1

0.1

0.1

Greenhouse gas

40.7

32.3

35.7

38.2

36.3

Air pollutants

0.1

0.1

0.1

0.1

0.0

Other

0.9

0.5

1.1

0.8

0.7

*Air pollutants and photochemical oxidants for 2023 have been calculated from the actual values for chemical substances from April to December 2023 in response to the revision to the PRTR
Law.

- 97 ENVIRONMENTAL PERFORMANCE DATAGlobal Warming Preventative Measures
Material Issue: Respond to the Climate Crisis
Attainment of the goal for CO 2 emissions:*The domestic consolidated subsidiaries of Kokuyo K Heart and Heartland have been
calculated within the applicable scope.

CO 2 emissions (t)2013 (Base year)

30,6832021

24,1032022

24,1012023

18,7412024 (Target year)

15,341(Unit tons)*Electricity-based emission factors are calculated using the basic emission factors of therelevant 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)
CO 2 emission transitions* KOKUYO Co., Ltd., 20 consolidated subsidiaries, 10
affiliates

Scope ofcalculation

Coefficientchange

Total

2019

32,9338,331

41,2642020

27,892

4,851

32,7432021

30,277

5,973

36,2502022

32,056

6,736

38,7922023

32,0704,759

36,829(Unit tons)*Market-based (Non-Fossil Fuel Certificate applied)*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).

- 98 ENVIRONMENTAL PERFORMANCE DATACO 2 Emissions (Initiatives to Reduce CO 2 under the SBTs)

Subject to the
SBT targets(emissions ofconsolidated
subsidiaries at
the time of thebase year)
2022

37,8462023

32,869Not subject to
the SBT targets(emissions ofsubsidiaries
included inconsolidationfrom the baseyear onward)
2,976

Not subject to
the SBTtargets (nonconsolidated
subsidiaries
and affiliates)

Total

946

38,792984

36,829(Unit tons)

CO 2 emission by source

CO 2 emissions

Composition ratio

Plants25,437

69.1%

Offices

6,714

18.2%

Distribution(storage, deliveries)

4,678

12.7%

Total

36,829100%(Unit tons)*Market-based (Non-Fossil Fuel Certificate applied)
CO 2 emission by source

CO 2 emissions

Composition ratio

Electricity

27,22373.9%

City gas

5,103

13.9%

Gasoline

1,409

3.8%

LPG

462

1.3%

Other

2,631

7.1%

Total

36,828100%(Unit tons)*Market-based (Non-Fossil Fuels Certificate applied)
CO 2 emission by country

CO 2 emissions

Composition ratioJapan

27,581

67.3%

India

4,525

11.0%

China (including
Hong Kong)

4,248

10.4%

Thailand

1,984

4.8%

Vietnam

1,518

3.7%

Malaysia

1,141

2.8%

Singapore

10

0.0%

41,007100.0%

Total(Unit tons)*Location-based- 99 ENVIRONMENTAL PERFORMANCE DATA

Greenhouse gases emitted by the supply chain

Category

Applicable/
Notapplicable

As Percentage
of Total

As Percentage
of Total
EmissionsCategory 1

Purchased products / services

Applicable-

1,011,674

78.7%

76.5%

Category 2

Capital goods

Applicable-

28,701

2.2%

2.2%

Category 3

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

Applicable

-

6,340

0.5%

0.5%

Category 4

Shipping and delivery(upstream)

Applicable-

41,2933.2%

3.1%

Category 5

Waste materials generated bybusinesses

Applicable

-

4,208

0.3%

0.3%

Category 6

Business trips

Applicable

-

1,242

0.1%

0.1%

Category 7

Commuting by workers

Applicable

-

3,272

0.3%

0.2%

Category 8

Leased assets (upstream)

Not applicable

0.0%

0.0%

Category 9

Shipping and delivery(downstream)

Applicable

0.0%

0.0%

0.0%

0.0%

Reason for Nonapplicability

Included in Scope 1 / 2

Scope 3Emissions-

Kokuyo is a manufacturer ofcompleted products and does
not deal with intermediate
products

5

Category 10

Processing of sold products

Not applicable

Category 11

Use of sold products

Applicable-

79,250

6.2%

6.0%

Category 12

Discarding of sold products

Applicable-

109,111

8.5%

8.2%

Category 13

Leased assets (downstream)

Applicable

-

284

0.0%

0.0%

Category 14

Franchises

Applicable

-

382

0.0%

0.0%

Category 15

Investments

Not applicable

0.0%

0.0%

Total

-

No investments

-

-

-

1,285,762-

Greenhouse gases emitted by the supply chain(for Scope 3)

Greenhouse gases emitted by the supply chain(by scope) (Tons of CO 2 )2023

Emissions by scope

Ratio

Scope 1

7,649

0.6%

Scope 2

29,221

2.2%

Scope 3

1,285,763

97.2%

Total

1,322,633-(Unit Tons of CO2)

- 100 ENVIRONMENTAL PERFORMANCE DATA-

Resource Saving and Recycling
Waste Materials: Recycling and Final Disposal Amounts

Waste
generated

RecyclingamountWaste Materials by Activity

Waste generated

Recycling ratio

201923,446

22,591

96.4%

2020

19,785

19,107

96.6%

2021

21,933

21,357

97.4%

2022

20,124

19,300

95.9%

2023

22,472

21,074

93.8%

Composition ratio

Plants11,91353.0%

Distribution

9,493

42.2%

Offices

1,066

4.7%

Total

22,472

99.9%(Unit tons)(Unit tons)

Waste material types (Recycling rate in brackets)

Waste
generated

Recyclingamount

Plastic waste generation (in Japan)

Recycling ratio

Paper

11,943

11,876

99.4%

Metals

4,058

4,021

99.1%

Plastic

3,440

3,113

90.5%

Other

3,030

2,063

68.2%

Total

22,471

21,073

93.8%

Year

Final
disposalamountBusiness
offices

Construction
sites

Total

2019

289

3,413

406

4,108

2020

248

2,759

223

3,229

2021

254

3,146

369

3,769

2022

391

2,615

529

3,535

2023

343

2,456

693

3,492

(Unit tons)(Unit tons)- 101 ENVIRONMENTAL PERFORMANCE DATA

Emissions by Country

Hazardous Waste Generation
2021
Waste
generated

2022
70

2023
56

80

(Unit tons)*Kokuyo Group defines and manages specially controlled industrial waste (as defined in Act
on Waste Management and Public Cleansin) as hazardous waste.

*Kokuyo Group covers Kokuyo Co., Ltd. and 20 consolidated subsidiaries and 10 affiliates.

Waste generated
composition ratio

Waste generated
Japan

18,336

81.6%

China

2,187

9.7%

Vietnam

968

4.3%

India

545

2.4%

Thailand

257

1.1%

Malaysia

180

0.8%

Singapore

1

0.0%

22,472100.0%

Total

Water Resources
Water usage by location

Water used, water recycled, water discharged

Water used

Water
recycledWater
discharged

2019

276

5

192

2020

235

5

151

2021

240

5

153

2022

271

5

177

2023

298

5

213

Water usage

Composition ratio

Plants244

81.8%

Distribution

28

9.3%

Offices

26

8.8%

Total

298

99.9%

(Unit 1,000㎥)*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 Indian subsidiary
was included in that year.

- 102 ENVIRONMENTAL PERFORMANCE DATA

(Unit 1,000㎥)

Water usage by country

Hazardous Waste Generation
2021

2022

2023

Public water areas

42

40

40

Grandwater

111

138

173

Total

153

178

213

(Unit 1,000㎥)

Water usage
composition ratio

Water usage
Japan

161,716

54.3%

India

62,241

20.9%

China

35,013

11.8%

Thailand

18,829

6.3%

Malaysia

11,745

3.9%

Vietnam

7,976

2.7%

Singapore

97

0.0%

297,617100.0%

Total- 103 ENVIRONMENTAL PERFORMANCE DATA

Chemical Substances Subject to PRTR Law
Vol. Released
PRTR
Management
No.

Chemical nameVol.
handled(kg)

Vol.
Released
into Air(kg)

Vol.
Released
into
PublicBodies of
Water
(kg)

Vol.
Released
into
Sewers(kg)

Vol. Sent
to
Landfill(kg)

Sub-total
(kg)

Vol.
Treated(kg)

Vol.
Consumed(kg)

1

Zinc compounds (water-soluble)

127.3

0.0

0.0

0.0

0.0

0.0

127.3

0.0

20

2-aminoethanol

249.2

0.0

0.0

0.0

0.0

0.0

249.2

0.0

30

Linear Alkyl Benzene Sulfonic Acidand its salts (LAS)

15.0

0.0

0.0

0.0

15.0

15.0

0.0

0.0

53

Ethylbenzene

21.3

13.0

0.0

0.1

0.1

13.2

0.0

8.1

80

Xylene

22.8

14.0

0.0

0.1

0.1

14.1

0.0

8.6

82

Silver and its water-solublecompounds

1.0

0.0

0.0

0.0

0.0

0.0

1.0

0.0

83

Cumene

6.1

6.0

0.0

0.1

0.0

6.1

0.0

0.0

125

Chlorobenzene

11.0

10.9

0.0

0.1

0.0

11.0

0.0

0.0

127

Chloroform

5.7

5.6

0.0

0.1

0.0

5.7

0.0

0.0

134

Vinyl acetate

3.1

1.4

0.0

0.0

0.0

1.4

0.0

1.6

232

N,N-dimethylformamide

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

298

Tolylene diisocyanate

0.6

0.6

0.0

0.0

0.0

0.6

0.0

0.0

300

Toluene

36.0

35.6

0.0

0.4

0.0

36.0

0.0

0.0

302

Naphthalene

20.4

20.2

0.0

0.2

0.0

20.4

0.0

0.0

309

Nickel compounds

10.0

0.0

0.0

0.0

0.0

0.0

10.0

0.0

321

Vanadium compounds

2.0

0.0

0.0

0.0

0.0

0.0

0.0

2.0

354

Di-n-butyl phthalate

13.4

0.0

0.0

0.0

0.0

0.0

0.0

13.4

392

N-hexane

30.8

30.8

0.0

0.0

0.0

30.8

0.0

0.0

407

Poly(oxyethylene) alkyl ether

436.3

0.0

0.0

15.5

175.8

191.3

0.7

244.3

410

Poly(oxyethylene) nonylphenyl
ether

6.9

0.0

0.0

0.0

0.2

0.2

0.0

6.7

412

Manganese and its compounds

18.2

0.8

0.0

0.0

6.5

7.3

0.0

10.9

448

Methylenebis(4,1-cyclohexylene)
diisocyanate

309.7

0.0

0.0

0.0

0.0

0.0

0.0

309.7

453

Molybdenum and its compounds

275.4

0.0

0.0

0.0

0.0

0.0

0.0

275.4

565

Polyacrylic acid

160.0

0.0

0.0

154.8

5.2

160.0

0.0

0.0

579

Alpha-alkyl-omega-hydroxy poly[oxyethane-1,2diyl/oxy(methylethane-1,2-diyl)](Limited to mixtures for which thealkali group structure is branched
and that alkyl group has from 9 to
11 carbon atoms (limited to
mixtures for which that alkyl
group has 10 carbon atoms as themain component)

38.0

0.0

0.0

0.0

0.0

0.0

38.0

0.0

585

Alpha-(isocyanatobenzyl)-omega(isocyanatophenyl)poly[(isocyana
tophenylene)methylene]

33.2

33.2

0.0

0.0

0.0

33.2

0.0

0.0

594

Ethylene glycol monobutyl ether

12,301.6

11.9

0.0

0.0

0.4

12.3

12,289.3

0.0595

Ethylenediaminetetraacetic acidand its potassium and sodium salts

7.6

0.0

0.0

0.0

7.2

7.2

0.5

0.0

626

Diethanolamine

293.3

0.0

0.0

0.0

9.7

9.7

0.0

283.7

627

Diethylene glycol monobutyl ether

5,513.8

88.2

0.0

0.0

3.0

91.2

5,422.6

0.0- 104 ENVIRONMENTAL PERFORMANCE DATA

Vol. Released
PRTR
Management
No.

Chemical nameVol.
handled(kg)

Vol.
Released
into Air(kg)

Vol.
Released
into
PublicBodies of
Water
(kg)

Vol.
Released
into
Sewers(kg)

Vol. Sent
to
Landfill(kg)

Sub-total(kg)

7,179.1

7,179.1

0.0

0.0

0.0

Vol.
Treated(kg)

Vol.
Consumed(kg)

7,179.1

0.0

0.0

629

Cyclohexane

653

Dimethyl (1-phenylethyl) benzene

1.6

0.0

0.0

0.0

1.6

1.6

0.0

0.0

661

1,2-dimethoxyethane

9.3

9.0

0.0

0.0

0.3

9.3

0.0

0.0

691

Trimethylbenzene

19.9

19.7

0.0

0.2

0.0

19.9

0.0

0.0

708

(1-Hydroxyethane-1,1diyl)diphosphonic acid and its
potassium and sodium salts

22.3

22.3

0.0

0.0

0.0

22.3

0.0

0.0

731

Heptane2,720.5

2,720.5

0.0

0.0

0.0

2,720.5

0.0

0.0

746

N-methyl-2-pyrrolidone

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

753

Sulfide (2,4,4-trimethylpentene)

0.1

0.1

0.0

0.0

0.0

0.1

0.0

0.0

29,922.5

10,222.9

0.0

171.6

255.1

10,619.5

18,138.6

1,164.4

Total*We made the calculations for the specific class 1 designated chemical substances and the class 1 designated chemical substances under the PRTR Law which was revised in 2021 (came into
effect on April 1, 2023). Therefore, the calculation period for the actual values for 2023 of the applicable substances is from April 1 to December 31, 2023.

*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 5.0 (March 2023).
*“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 bymeans of chemical reaction with other substances.

- 105 ENVIRONMENTAL PERFORMANCE DATA

Environmental Load Material Flow

- 106 ENVIRONMENTAL PERFORMANCE DATA

Planning,
R&D

Manufacturing

Distribution(storage,deliveries)

Sales,
services

Logistics(contracted goods
transportation)

Energy (GJ)

55,811

529,79073,727

97,290

Water (km 3 )

20

244

7

28

Total volume transported(Mt)

Inputs288,665

167.7

Substance inputs (t)94,915Paper (t)51,248

Metals (t)19,926

Resins (t)4,078Wood (t)2,817Cloth (t)249

Chemical products (t)12,825

Other (t)3,772

Total volume sold (kt ×
10)

21.3

Packaging (t)Recycling

9,542

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

5,120
2,679

25,437

GHG emissions fromsources other thanelectrical power (tCO 2 e)

4,035

4,678

18,516

41.5

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

Total

0.11

Waste (t)740

11,913326

9,493

Wastewater (km 3 )

20

159

7

28

Discharges to public
water bodies (km 3 )40

COD (kg)191

BOD (kg)

85

Used products collected
(t)

2,758

Used products reused (t)199

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 andReporting Manual, Ver. 4.9 (Apr 2023, 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 products in the plants of the KOKUYO Group

Overall Sales Volume

kt × 10

Data from furniture and stationery productsContainer andPackaging Materialst

The volume of packaging materials used to package products- 107 ENVIRONMENTAL PERFORMANCE DATA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 )Coefficients based on the Act on Promotion of Global Warming Countermeasures (adjusted emission coefficients based on
the actual values in fiscal 2021 and 2022 for each power company) were used to calculate the CO 2 emissions factors for
power consumption in Japan.
For power consumption overseas, we use the local emissions factors listed in IEA Emissions Factors 2023.
Values presented in the Greenhouse Gas Emission Calculation and Reporting Manual, Ver. 4.9 (Apr 2023) and Ver. 5.0(Feb 2024) (Ministry of the Environment, Ministry of Economy, Trade and Industry) were used to calculate CO 2 emissions
factors for 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.

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, Trade andIndustry's Greenhouse Gas Emission Calculation and Reporting Manual, Ver. 5.0 (Dec 2024).

t

Emissions 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 substances discharged from businessestablishments.
The recycle volume is the total of the volume of discharged waste (emissions) that has been recycled through material orthermal recycling, and the volume of valuable substances.
The final waste volume is the combined total of the recycling residue and the volume of waste directly disposed of in
landfills, out of the total volume of discharged waste (solid waste) ().
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 the Environment (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 a legal obligation tomeasure water quality

CO 2 Emissions fromEnergy Use

Other Greenhouse
Gases

SO x , NO x

Waste

Other items
Indicator

Unit

Calculation method

Overall Transportation
Volumetkm

The total of the following outsourced transportation volumes: total domestic transportation in Japan including thetransportation of furniture products, store fixtures, stationery products, transportation of catalog sales by Kaunet, andtransportation of Actus products; and transportation of products between overseas sites and within Malaysia.

Cyclical Water Use at
Plantsm3

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

Cyclical Resource Useon Sitestt

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

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.

- 108 ENVIRONMENTAL PERFORMANCE DATA

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

Environment-related
Investments

Item

2021

Costs

Effects

2022

2023

2021

2022

2023

690

0

0

1,532

1,778

2,550

0

0

10,785

7,491

1,124

8,200

2,481

4,306

▲2,160Resource saving andrecycling

00054,26550,73645,842

Procurement andprovision of ecofriendly products

0

0

0

3,583

4,980

Survey and research
into environmental
technology

0

0

0

160

Environmental
communication

0

0

0

Setting up management
structures

00

Environmental damage
response

011,475

Pollution prevention
Global warming
prevention

Total

2021

Total

2022

2023

2021

2022

2023

0

1,532

1,778

2,550

▲1,603▲1,400

6,040

878

2,906

▲24,564▲26,213▲26,050

29,701

24,523

19,792

3,434

0

0

0

3,583

4,980

3,434

148

317

0

0

0

160

148

317

1,623

3,547

3,539

0

0

0

1,623

3,547

3,539

0

6,369

9,244

11,361

0

0

0

6,369

9,244

11,361

0

0

0

0

0

0

0

0

0

0

0

7,491

1,124

75,732

72,914

71,347▲26,724▲27,816▲27,450

49,00845,09843,899

Breakdown of economic effects
Item

Content of countermeasures
Effects of introducing energy-saving facilities

Global warming prevention

2022

2023

▲1,124▲633▲324

Effects of solar power generation

▲978

▲936

▲976

Effects of improving operations

▲58

▲34

▲101

▲24,561▲26,213▲26,050

▲2

0

0

0

0

0

▲26,723▲27,816▲27,451

Proceeds from garbage sorting and recycling
Resource saving and recycling

2021

Waste Reduction
Cost reductions achieved through the promotion of recycling

Total- 109 ENVIRONMENTAL PERFORMANCE DATA

Sites with ISO 14001 Certification
Seventy-three sites, or 38% of the total 192 sites have received ISO 14001 certification.
No.

Company Name

Site Name

1

Head Office (including XT and WS)

2

Tokyo Shinagawa Office

3

Tokyo Shinagawa SST OfficeNo.

Company Name

40

Site Name
Head Office

Kaunet41

Tokyo Shinagawa Office

42

Head Office

Nagoya Office

43

Tachikawa Office6

Osaka Umeda Office44

Chiba Office7

Mie Factory

45

Saitama Office8

Shibayama Factory46

Yokohama Office47

Nagano Office48

Matsumoto Office

Head Office49

Nagoya Office

13

Head Office50

Shizuoka Office

14

Sapporo Distribution Center

51

Umeda Office15

Sendai Distribution Center

16

Gunma Distribution Center

52

Kyoto Office

17

Central Japan Delivery andDistribution Center

18

Central Japan Delivery Center

19

Shin Chiba Distribution Center

20

Shiga Distribution Center

4
5

9
10
11
12

21

KokuyoKokuyo K Heart
Kokuyo MVP
Kokuyo Product Shiga

Kokuyo Logitem

Tokyo Kasumigaseki Office

Head Office
Tottori Factory
Aoya Factory

Mie Distribution Center

53

Kokuyo Marketing

Kobe Office54

Wakayama Office

55

Hiroshima Office

56

Yamaguchi Office

57

Matsue Office22

Ina Distribution Center

58

Fukuoka Office23

Chubu Delivery and Distribution Center

59

Nagasaki Office24

Toyama Distribution Center

60

Miyazaki Office25

Fujiwara Distribution Center

26

Komono Distribution Center

61

Kagoshima OfficeKansai Delivery and Distribution
Center62

Kumamoto Office27

63

Oita Office28

Okayama Distribution Center

29

Kyushu Distribution Center

64

Okinawa Office30

Head Office

31

65

Kokuyo (Malaysia)

Head Office

Sapporo Distribution Center

66

Kokuyo-IK Thailand

Head Office

32

Ibaraki Distribution Center

67

33

Metropolitan Area Integrated
Distribution Center68

Chubu Integrated Distribution Center

69

Samba Plant

Shiga National Distribution Center

70

Head Office36

Kinki Integrated Distribution Center

71

37

Osaka Nanko Distribution Center

38

Kyushu Integrated Distribution Center

39

Fukuoka Distribution Center

34
35

Kokuyo Supply
Logistics

72

Patalganga Plant
Kokuyo Camlin

Kokuyo Commere(Shanghai)73- 110 ENVIRONMENTAL PERFORMANCE DATA

Tarapur Plant

Beijing OfficeShenzhen Office
LAMEX Dongguan Plant

KOKUYO (MIE PLANT)LOCATION

2012 Nishitawara, Nabari-shi, Mie

PRINCIPAL PRODUCTS

Steel desks, low partitions, chairs, etc.

COMMENCEMENT OF OPERATIONS

May 1993

SITE AREA

145,977m 2

Inputs2021

Energy (GJ)

Water resources（m 3 ）102,694

100,880

90,943

Fuel

40,83639,532

36,637

Electricity

61,85861,34854,306

City/well water

62,87364,06764,2522021
CO 2

Waste emissions（t）

SO x

-

2023
4,310

-

1,864
-

NO x

0.3

0.13

0.11

Total waste volume

1,337

1,265

1,160

Reuse/heat recovery

1,334

1,261

1,153

3

3

7

Volume of effluent

30,46731,097

29,974Emissions into public water
areas

30,46731,097

29,974Emissions into sewage systems
Hydrogen ion concentration(PH)
Restricted items emitted
into bodies of water

2022
4,621

Final disposal

Emissions into bodies ofwater（m 3 ）2023

Volume of energy inputs

Outputs

Atmospheric emissions（t）

2022

-

-

-

7.6～8.1

7.6～8.0

7.5～8.1

COD(mg/L)

11.3

8.6

9

BOD(mg/L)

4.1

2.4

3.9

SS(mg/L)

2.7

2.3

3.5

- 111 REPORTS ON BUSINESS SITES IN JAPANKOKUYO (SHIBAYAMA PLANT)LOCATION

3155-4 Ohdai, Shibayama-machi, Sanbu-gun, Chiba

PRINCIPAL PRODUCTS

Room dividers, low partitions, cabinets, etc.

COMMENCEMENT OF OPERATIONS

June 1994

SITE AREA

73,734m 2

Inputs2021

Energy (GJ)

Water resources（m 3 ）116,567

120,133

104,221

Fuel

59,51861,45851,676

Electricity

57,04958,67552,545City/well water

15,065

15,336

13,3642021
CO 2

Waste emissions（t）

Restricted items emitted
into bodies of water

2022
5,572

2023
5,767

5,018

SO x

-

-

-

NO x

-

-

-

Total waste volume

2,222

2,107

2,223

Reuse/heat recovery

2,222

2,091

2,219

0

16

4

Volume of effluent

10,156

10,428

8,292

Emissions into public water
areas

4,945

5,089

2,591

Emissions into sewage systems

5,211

5,339

5,701

Hydrogen ion concentration
(PH)

7.4

7.3

7.4

COD(mg/L)

2.8

1.8

1.3

BOD(mg/L)

1.4

1.6

1.5

SS(mg/L)

0.7

0.5

1.5

Final disposal

Emissions into bodies ofwater（m 3 ）2023

Volume of energy inputs

Outputs

Atmospheric emissions（t）

2022- 112 REPORTS ON BUSINESS SITES IN JAPANKOKUYO PRODUCT SHIGALOCATION

312 Kamigano, Aisho-cho, Echi-gun, Shiga
Notebooks, plain paper copy paper, carbon duplication
books, loose -leaf supplies, etc.

PRINCIPAL PRODUCTS
COMMENCEMENT OF OPERATIONS

October 1980
114,294m 2

SITE AREA

Inputs2021

Energy (GJ)

Water resources（m 3 ）52,35152,931

42,179

Fuel

1,022

1,010

1,014

Electricity

51,32851,921

41,165City/well water

4,230

4,796

4,728

2021
CO 2

Waste emissions（t）

2023
1,751

491

SO x

-

-

-

NO x

-

-

-

Total waste volume

2,155

2,177

2,129

Reuse/heat recovery

2,149

2,177

2,129

6

0

0

4,174

4,708

4,482

Volume of effluent

Restricted items emitted
into bodies of water

2022
1,894

Final disposal

Emissions into bodies ofwater（m 3 ）2023

Volume of energy inputs

Outputs

Atmospheric emissions（t）

2022

Emissions into public water
areas

-

-

-

Emissions into sewage systems

4,174

4,708

4,482

Hydrogen ion concentration(PH)

6.9～8.9

7.0～7.9

7.1～8.3

COD(mg/L)

5.1

4.4

1.9

BOD(mg/L)

13.0

6.9

6.1

SS(mg/L)

46

4.6

14

- 113 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

Inputs2021

Energy (GJ)

Water resources（m 3 ）21,632

27,886

21,569

Fuel

206

216

208

Electricity

21,426

27,67021,361

City/well water

2,924

2,331

2,178

2021
CO 2

Waste emissions（t）

Restricted items emitted
into bodies of water

2022
1,170

2023
1,507

1,312

SO x

-

-

-

NO x

-

-

-

Total waste volume

942

966

837

Reuse/heat recovery

926

953

837

Final disposal

15

13

0

2,924

2,331

2,178

Volume of effluent
Emissions into bodies ofwater（m 3 ）2023

Volume of energy inputs

Outputs

Atmospheric emissions（t）

2022

Emissions into public water
areas

-

-

-

Emissions into sewage systems

2,924

2,331

2,178

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- 114 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

Inputs2021
Volume of energy inputs

Energy (GJ)

15,022

12,474

979

900

676

Electricity

13,544

14,122

11,798City/well water

4,327

1,201

1,718

Outputs

2021
CO 2

Atmospheric emissions（t）

Waste emissions（t）

Emissions into bodies ofwater（m 3 ）

2022
791

2023
816

757

SO x

-

-

-

NO x

-

-

-

Total waste volume

438

424

399

Reuse/heat recovery

437

423

399

Final disposal

1

1

0

Volume of effluent

4,327

1,201

1,718

Emissions into public water
areas

4,327

1,201

1,718

Emissions into sewage systems

Restricted items emitted
into bodies of water2023

14,523

Fuel

Water resources（m 3 ）

2022

-

-

-

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- 115 REPORTS ON BUSINESS SITES IN JAPANIWAMI PAPER INDUSTRY CO., LTD. (HEADQUARTERS FACTORY)LOCATION

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

Inputs2021

Energy (GJ)

Water resources（m 3 ）

2,806

2,553

2,218

Fuel

282

390

302

Electricity

2,525

2,162

1,917

City/well water

496

422

482

2021
CO 2

Waste emissions（t）

Emissions into bodies ofwater（m 3 ）Restricted items emitted
into bodies of water2023

Volume of energy inputs

Outputs

Atmospheric emissions（t）

2022

2022
133

2023
120

121

SO x

-

-

-

NO x

-

-

-

Total waste volume

82

66

60

Reuse/heat recovery

82

66

60

Final disposal

0

0

0

Volume of effluent

496

422

482

Emissions into public water
areas

-

-

-

Emissions into sewage systems

496

422

482

Hydrogen ion concentration(PH)

6.9～8.4

6.0～8.4

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- 116 REPORTS ON BUSINESS SITES IN JAPANIWAMI PAPER INDUSTRY CO., LTD. (Ato Factory)
LOCATION

586-3 Atotokusa, Yamaguchi-shi, Yamaguchi

PRINCIPAL PRODUCTS

Resume form, manuscript paper, slip pad, report paper, etc.

COMMENCEMENT OF OPERATIONS

April 1991

SITE AREA

28,297m 2

Inputs2021

Energy (GJ)

Water resources（m 3 ）

9,266

7,223

6,281

Fuel

1,988

212

182

Electricity

7,279

7,011

6,099

City/well water

704

631

681

2021
CO 2

Waste emissions（t）

Emissions into bodies ofwater（m 3 ）

2022
520

2023
384

330

SO x

-

-

-

NO x

-

-

-

Total waste volume

272

294

256

Reuse/heat recovery

272

284

253

Final disposal

0

9

3

Volume of effluent

704

631

681

Emissions into public water
areas

704

631

681

Emissions into sewage systems
Hydrogen ion concentration(PH)
Restricted items emitted
into bodies of water2023

Volume of energy inputs

Outputs

Atmospheric emissions（t）

2022

-

-

-

6.5～7.9

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- 117 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), polypropylene
files, tape adhesives, corrective tape etc.

COMMENCEMENT OF OPERATIONS

December 1996
12,679m 2

SITE AREA

Inputs2021
Volume of energy inputs

Energy (GJ)

44,79838,056

321

343

357

Electricity

41,62444,454

37,699City/well water

16,576

19,72818,829Outputs

2021
CO 2

Atmospheric emissions（t）

Waste emissions（t）

Restricted items emitted
into bodies of water

2022
1,943

2023
2,126

1,975

SO x

-

-

-

NO x

-

-

-

Total waste volume

303

317

257

Reuse/heat recovery

265

278

217

Final disposal

38

39

40

13,262

15,782

15,063

Volume of effluent
Emissions into bodies ofwater（m 3 ）2023

41,945

Fuel

Water resources（m 3 ）2022

Emissions into public water
areas

-

-

-

Emissions into sewage systems

13,262

15,782

15,063

Hydrogen ion concentration
(PH)

7.1

7.0

7.6

COD(mg/L)

102.6473.3

44

BOD(mg/L)

177.8

32.6

2.1

SS(mg/L)

10.0

13.8

57.5

- 118 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

Workstations, phone booths, cabinets, furniture, etc.

COMMENCEMENT OF OPERATIONS

October 1999
58,000m 2

SITE AREA

Inputs2021

Energy (GJ)

Water resources（m 3 ）18,77818,95816,553

Fuel

6,001

5,554

5,446

Electricity

12,777

13,404

11,107

City/well water

8,124

11,426

11,7452021
CO 2

Waste emissions（t）

Emissions into bodies ofwater（m 3 ）Restricted items emitted
into bodies of water2023

Volume of energy inputs

Outputs

Atmospheric emissions（t）

2022

2022
1,164

2023
1,170

1,052

SO x

-

-

-

NO x

-

-

-

Total waste volume

200

209

180

Reuse/heat recovery

164

165

166

Final disposal

36

45

14

Volume of effluent

2,156

3,217

6,025

Emissions into public water
areas

1,121

1,854

4,701

Emissions into sewage systems

1,035

1,363

1,324

Hydrogen ion concentration
(PH)

7.7

8.0

7.9

COD(mg/L)

18.4

28.3

51.3

BOD(mg/L)

6.8

8.6

13.3

SS(mg/L)

8.5

9.8

17.1

- 119 REPORTS ON BUSINESS SITES OVERSEASKOKUYO VIETNAM
Land Plot B2-B7, Japan-Haiphong IZ, An Duong Dist.,
Haiphong City, Vietnam

LOCATION
PRINCIPAL PRODUCTS

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

COMMENCEMENT OF OPERATIONS

November 2006
51,544m 2

SITE AREA

Inputs2021
Volume of energy inputs

Energy (GJ)

24,79524,009

575

629

708

Electricity

28,91024,16623,301

City/well water

9,569

8,668

7,976

Outputs

2021
CO 2

Atmospheric emissions（t）

Waste emissions（t）

Emissions into bodies ofwater（m 3 ）Restricted items emitted
into bodies of water2023

29,485

Fuel

Water resources（m 3 ）

2022

2022
1,917

2023
1,562

1,512

SO x

-

-

-

NO x

-

-

-

Total waste volume

1,006

784

968

Reuse/heat recovery

806

611

919

Final disposal

200

173

49

Volume of effluent

7,655

6,934

6,381

Emissions into public water
areas

-

-

-

Emissions into sewage systems

7,655

6,934

6,381

Hydrogen ion concentration
(PH)

7.0

7.2

7.0

COD(mg/L)

188.5

134.5

54.5

BOD(mg/L)

71.5

65.4

30.2

SS(mg/L)

101.5

74.8

41.1

- 120 REPORTS ON BUSINESS SITES OVERSEASKOKUYO COMMERCE (SHANGHAI) CO.,LTD SHANGHAI FACTORY
LOCATION

No.128 RenJie RD, FengXian District, Shanghai,P.R,China
201402PRINCIPAL PRODUCTS

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

COMMENCEMENT OF OPERATIONS

August 2012

SITE AREA

27,457.7m 2

Inputs2021
Volume of energy inputs

Energy (GJ)

16,197

16,571

511

283

284

Electricity

16,353

15,915

16,287

City/well water

1,800

1,763

2,051

Outputs

2021
CO 2

Atmospheric emissions（t）

Waste emissions（t）

Restricted items emitted
into bodies of water

2022
1,055

2023
1,000

1,132

SO x

-

-

-

NO x

-

-

-

Total waste volume

1,227

1,399

1,494

Reuse/heat recovery

1,193

1,364

1,435

Final disposal

34

34

59

1,620

1,587

1,846

Volume of effluent
Emissions into bodies ofwater（m 3 ）2023

16,864

Fuel

Water resources（m 3 ）2022

Emissions into public water
areas

-

-

-

Emissions into sewage systems

1,620

1,587

1,846

Hydrogen ion concentration(PH)

Not subject to measurement

Not subject to measurement

Not subject to measurement

COD(mg/L)

Not subject to measurement

Not subject to measurement

Not subject to measurement

BOD(mg/L)

Not subject to measurement

Not subject to measurement

Not subject to measurement

SS(mg/L)

Not subject to measurement

Not subject to measurement

Not subject to measurement- 121 REPORTS ON BUSINESS SITES OVERSEASKOKUYO CAMLIN (TARAPUR FACTORY, INDIA)
Plot no. D-2/1, MIDC Tarapur, Tal- Palghar, Dist- Thane,
401506

LOCATION
PRINCIPAL PRODUCTS

Art supplies, crayons, etc.

COMMENCEMENT OF OPERATIONS

April 1974

SITE AREA

10,045m 2

Inputs2021
Volume of energy inputs

Energy (GJ)

45,53321,922

286

790

395

Electricity

20,252

44,743

21,527

City/well water

17,901

23,87425,968Outputs

2021
CO 2

Atmospheric emissions（t）

Waste emissions（t）

2023
3,145

1,725

SO x

-

-

-

NO x

-

-

-

Total waste volume

45.2

85.0

129.2

Reuse/heat recovery

45.2

85.0

129.2

0

0

0

17,901

23,87425,968Volume of effluent

Restricted items emitted
into bodies of water

2022
1,487

Final disposal

Emissions into bodies ofwater（m 3 ）2023

20,539

Fuel

Water resources（m 3 ）2022

Emissions into public water
areas

-

-

-

Emissions into sewage systems

17,901

23,87425,968

Hydrogen ion concentration
(PH)

7.72

7.37

7.6

COD(mg/L)

69.0

46.0

42.2

BOD(mg/L)

12.0

10.0

9.8

SS(mg/L)

2.0

23.0

9.3

- 122 REPORTS ON BUSINESS SITES OVERSEASKOKUYO CAMLIN (PATALGANGA FACTORY, INDIA)
Plot No. F – 8, Additional Patalganga MIDC, Chavane
Village,
Post – Apte, Taluka – Panvel, District – Raigad,
Maharashtra - 410220

LOCATION

Writing instruments (markers, mechanical pencils, gel pens,sketch pen), ink, crayons, etc.

PRINCIPAL PRODUCTS
COMMENCEMENT OF OPERATIONS

April 2017

SITE AREA

56,000m 2

Inputs2021

Energy (GJ)

Water resources（m 3 ）23,227

26,22423,826

Fuel

1,203

987

1,493

Electricity

22,02525,237

22,333

City/well water

35,57138,64024,5642021
CO 2

Waste emissions（t）

Emissions into bodies ofwater（m 3 ）Restricted items emitted
into bodies of water2023

Volume of energy inputs

Outputs

Atmospheric emissions（t）

2022

2022
1,678

2023
1,812

1,879

SO x

-

-

-

NO x

-

-

-

Total waste volume

281.9

222.9

242.4

Reuse/heat recovery

281.7

222.3

242.4

Final disposal

0

0.626

0

Volume of effluent

0

0

0

Emissions into public water
areas

-

-

-

Emissions into sewage systems

-

-

-

Hydrogen ion concentration
(PH)

6.5

7.5

7.9

COD(mg/L)

32.0

120.0

131.8

BOD(mg/L)

8.0

32.0

34.0

SS(mg/L)

17.0

28.0

34.0

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

Lane No. 9, Sidco, Phase - 1 I.G.C., Samba- 184 121

PRINCIPAL PRODUCTS

Art supplies, poster colors, etc.

COMMENCEMENT OF OPERATIONSJanuary 2008
10,040m 2

SITE AREA

Inputs2021

Energy (GJ)

Water resources（m 3 ）

6,820

8,680

8,559

Fuel

579

752

588

Electricity

6,241

7,928

7,971

City/well water

6,977

10,25911,7092021
CO 2

Waste emissions（t）

2023
600

675

SO x

-

-

-

NO x

-

-

-

Total waste volume

103.4

116.2

173.1

Reuse/heat recovery

103.4

116.2

173.1

0

0

0

6,977

10,25911,709Volume of effluent

Restricted items emitted
into bodies of water

2022
492

Final disposal

Emissions into bodies ofwater（m 3 ）2023

Volume of energy inputs

Outputs

Atmospheric emissions（t）

2022

Emissions into public water
areas

-

-

-

Emissions into sewage systems

6,977

10,25911,709Hydrogen ion concentration
(PH)

7.6

7.5

7.2

COD(mg/L)

48.0

104.0

64.0

BOD(mg/L)

8.0

23.0

11.0

SS(mg/L)

10.0

56.0

21.0

- 124 REPORTS ON BUSINESS SITES OVERSEAS

Mapping to other guidelines
Mapping to GRI Standards
We have referred to the GRI Sustainability Reporting Standards.
Index

Disclosure

GRI Standard

Relevant page

General Disclosures
GRI 2: General disclosures 2021

1.
Organization andreporting practices

2.
Activities and workers

3.
Governance

2-1

Organization details

Corporate Data

2-2

Business entities covered by the organization’s sustainability reporting

Affiliated Companies (Japanese Only)

2-3

Reporting period, reporting frequency and contact details

Sustainability site editorial policy

2-4

Description of revisions and corrections to information

2-5

External assurance

Independent assurance certificates

2-6

Activities, value chains and other business relationships

Business Overview
Supply Chain Management

2-7

Employees

Databank (society)2-8Workers other than employees

2-9

Governance structure and composition

Corporate Governance

2-10

Nominating and selecting in the highest governance body

Corporate Governance

2-11

Chair of the highest governance body

Corporate Governance

2-12

Role of the highest governance body in supervision of the management of
impacts

Corporate Governance

2-13

Transferring responsibility for the management of impacts

Corporate Governance

2-14

Highest governance body's role in sustainability reporting

Sustainable Management

2-15

Conflicts of interest

Corporate Governance

2-16

Communicating critical concerns

Risk Management

2-17

Collective knowledge of highest governance body

Corporate Governance

2-18

Evaluating the highest governance body's performance

Corporate Governance

2-19

Remuneration policies

Corporate Governance

2-20

Process for determining remuneration

Corporate Governance

2-21

Annual total compensation ratio- 125 MAPPING TO OTHER GUIDELINES

Index4.
Strategies, policies,
and practices andcustoms

Disclosure

GRI Standard

Relevant page

2-22

Statement on the strategy for sustainable development

Message from the CEO

2-23

Policy statement

Sustainable Management
KOKUYO Group Code of Conduct
Respect for Human Rights

2-24

Implementation of the policy statement

Environmental
Improve wellbeing
Supply Chain Management
Providing Peace of Mind and Safety to
Customers

2-25

Process to correct negative impacts

Risk Management
Promoting compliance
Respect for Human Rights

2-26

System for seeking advice and system for raising concerns

Promoting compliance

2-27Compliance with laws and regulations

Promoting compliance
Legal Compliance and Pollution
Prevention

2-28

Organizations with membership qualifications

Sustainability Policy, Guidelines
Endorsement

Approach to stakeholder engagement

Stakeholder Engagement
Dialogue with our Customers
Employee Communication
Supply Chain Management
Social Contribution

2-29

2-30

Page 10 of our latest annual securities
report (Japanese Only)

Labor agreement(827 kb)
GRI 3: Material topics 2021
3-1

Process for determining material items

The 5 Materialities

3-2

List of material topics

Sustainable Management

3-3Management of material items

Sustainable Management

201-1

Direct economic value generated and distributed

Performance Highlights

201-2

Financial implications and other risks and opportunities due to climatechangeRespond to the climate crisis

201-3

Defined benefit plan obligations and other retirement plans

GRI 200: Economic

GRI201:
Economic Performance
2016

Page 95 of our latest annual securities
report (Japanese Only)(827 kb)

GRI202:Presence in the local
economy2016
GRI203:
Indirect Economic
Impacts
2016
GRI204:
Procurement Practices
2016
GRI205:Anti-corruption
2016
GRI206:Anti-competitive
Behavior
2016

201-4

Financial assistance received from government

202-1

Ratios of standard entry level wage by gender compared to local minimum
wage

202-2

Proportion of senior management hired from the local 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 to corruption

205-2

Communication and training about anti-corruption 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- 126 MAPPING TO OTHER GUIDELINES

IndexGRI207:Tax
2019

Disclosure

GRI Standard

Relevant page207-1

Approach to tax

207-2

Taxation business governance, control, and risk management

207-3

Stakeholder engagement and management of concerns 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

303-1

Interactions with water as a shared resource

303-2

Management of water discharge -related impacts

303-3

Water withdrawal

Water resource
Reports for Each Business Site

303-4

Water discharge

Water resource
Reports for Each Business Site

303-5

Water consumption

Water resource
Reports for Each Business Site

304-1

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

304-2

Significant impacts of activities, products, and services on biodiversity

304-3

Habitats protected or restored

304-4

IUCN Red List species and national conservation list species with habitats inareas 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
emissions306-1

Waste generation and significant impacts related to waste

306-2Management of significant impacts related to waste

306-3

Generated waste

Databank (environmental)> Resource saving and recycling

306-4

Undisposed waste

Databank (environmental)> Resource saving and recycling

306-5

Disposed waste

Databank (environmental)> Resource saving and recycling

308-1

New suppliers that were screened using environmental criteria

308-2

Negative environmental impacts in the supply chain and actions taken

GRI 300: Environment
GRI301:
Materials
2016

GRI302:
Energy2016

GRI303:
Water and effluents
2018

Yui no Mori (Japanese)

GRI304:
Biodiversity
2016

GRI305:Emissions
2016

GRI306:
Effluents and Waste
2020

GRI308:Supplier
Environmental
Assessment
2016- 127 MAPPING TO OTHER GUIDELINES

Contribute toward a society that coexists
with nature

Yui no Mori (Japanese)

Databank (environmental)

IndexDisclosure

GRI Standard

Relevant page

GRI 400: Social

GRI401:
Employment
2016

GRI402:
Labor/Management
Relations
2016

GRI403:
Occupational Healthand Safety
2018

Databank (society)401-1

New employee hires and employee turnover

401-2

Benefits provided to full-time employees that are not provided to temporary
or part-time employees

401-3

Parental leave

402-1

Minimum notice periods regarding operational changes

403-1

Occupational health and safety management system403-2

Hazard identification, risk assessment, and incident investigation

403-3

Occupational health services

Employee Safety

403-4

Worker participation, consultation, and communication on occupational
health and safety

Employee Safety

403-5

Worker training on occupational health and safety

Employee Safety

403-6

Promotion of worker health

Employee health403-7

Prevention and mitigation of occupational health and safety impacts directly
linked by business relationships

Employee health403-8

Databank (society)

Workers covered by an occupational health and safety management system

Employee Safety
Employee HealthPage 10 of our latest annual securities
report (Japanese Only)(827 kb)

Databank (society)403-9Work-related injuries

403-10Work-related ill health404-1

Average hours of training per year per employee

404-2

Programs for upgrading employee skills and transition assistance programs

404-3

Percentage of employees receiving regular performance and careerdevelopment reviews

405-1

Diversity of governance bodies and employees

405-2

Ratio of basic salary and remuneration of women to men

GRI406:
Non-discrimination
2016

406-1

Incidents of discrimination and corrective actions taken

GRI407:
Freedom of
Association andCollective Bargaining
2016

407-1

Operations and suppliers in which the right to freedom of association andcollective bargaining may be at risk

GRI408:Child Labor
2016

408-1

Operations and suppliers at significant risk for incidents of child labor

Supply Chain Management

GRI409:Forced or Compulsory
Labor
2016

409-1

Operations and suppliers at significant risk for incidents of forced orcompulsory labor

Supply Chain Management

GRI410:
Security Practices
2016

410-1

Security personnel trained in human rights policies or procedures

GRI411:
Rights of Indigenous
Peoples
2016

411-1

Incidents of violations involving rights of indigenous peoples

413-1

Operations with local community engagement, impact assessments, anddevelopment programs

413-2

Operations with significant actual and potential negative impacts on local
communities

GRI404:Training and
Education
2016
GRI405:
Diversity and Equal
Opportunity
2016

GRI413:
Local Communities2016- 128 MAPPING TO OTHER GUIDELINES

Labor and talent

Databank (society)Social Contribution

IndexDisclosure

GRI414:
Supplier Social
Assessment
2016
GRI415:
Public Policy
2016
GRI416:
Customer Health and
Safety2016

GRI Standard

Relevant page414-1

New suppliers that were screened using social criteria

414-2

Negative social impacts in the supply chain and actions taken

415-1

Political contributions

416-1

Assessment of the health and safety impacts of product and service
categories

416-2

Incidents of non-compliance concerning the health and safety impacts ofproducts and services

Supply Chain Management

Providing Peace of Mind and Safety to
Customers

GRI417:
Marketing andLabeling
2016

417-1

Requirements for product and service information and labeling

417-2

Incidents of non-compliance concerning product and service informationand labeling

417-3

Incidents of non-compliance concerning marketing communications

GRI418:Customer Privacy
2016

418-1

Substantiated complaints concerning breaches of customer privacy andlosses of customer data

ISO26000
Below, we have mapped disclosures to the ISO 26000 core subjects.

ISO 26000
Core Subject

IssuesPage

Organizational
governance

Issue 1: Organizational governance

Message from the CEO
Sustainable Management
Corporate Governance

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

Sustainable Management
KOKUYO Group Code of Conduct
Labor and talent
Respect for Human Rights
Supply Chain Management
Databank (society)

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 the workplace

Sustainable Management
KOKUYO Group Code of Conduct
Labor and talent
Improve Wellbeing
Respect for Human Rights
Supply Chain Management
Databank (society)

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

Sustainable Management
KOKUYO Group Code of Conduct
Supply Chain Management
Environmental Management
Respond to the climate crisis
Contribute to circular economy
Legal Compliance and Pollution Prevention
Contribute toward a society that coexists with nature
Databank (environmental)
Reports for Each Business Site
Yui no Mori (Japanese)

Environmental- 129 MAPPING TO OTHER GUIDELINES

Fair operating
practices

ConsumerissuesCommunity
involvement
anddevelopment

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

Sustainable Management
KOKUYO Group Code of Conduct
Supply Chain Management
Promoting compliance
Risk Management

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 complaint and dispute resolution
Issue 5: Consumer data protection and privacy
Issue 6: Access to essential services
Issue 7: Education and awarenessSustainable Management
Providing Peace of Mind and Safety to Customers
Databank (society): Reflecting Customer Opitions
Contributing to a recycling-oriented society
Dialogue with our Customers

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

Sustainable Management
KOKUYO Group Code of Conduct
Improve wellbeing
Labor and talentSocial Contribution
Awards and Accolades
Contribute toward a Society that Coexists with
NatureDatabank (society)- 130 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, we established the KOKUYO Group Codeof 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 other measures are thefoundations 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 an interest in their healthand 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
We created the Circular Business Guidelines as an updated version of the eco-batsu initiative, which we have continued since 2008. The guidelines aredesigned to support closed-loop recycling and reduce recycling speed by reinforcing the areas of use, collection, and recycling. Through communication withusers and the venous industry, we will shift to truly circular products and roll out maintenance and collection services for circulation.

KOKUYO Group Sustainable Procurement Policy
The KOKUYO Group Sustainable Procurement Policy enshrines our commitment to ensuring that our procurement activities contribute to a sustainable planetand 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, andcontinue working with them to fulfill our collective social responsibility to support development of society.

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

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

KOKUYO Group Paper and Timber Procurement Standards
We recognize the roles played by forests such as in curbing global warming and promoting biodiversity. Accordingly, we have established the KOKUYOGroup Paper and Timber Procurement Standards. We are aiming with these standards for development in harmony with forest resources in the future while
taking into consideration legality, transparency and sustainability in relation to the procurement of materials.

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 the accuracy of information about our products andservices.

- 132 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 that creates 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 the information they need. It will
also be one where value is produced through repeated trial and error in our third medium-term plan, Field Expansion 2024. Our goal with that is tochange 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 conduct a pulse survey to be able to rotate through the PDCA cycle at a high pace of once a month in KOKUYO Co., Ltd. and Kaunet Co., Ltd. One
purpose of the survey is to grasp the state of individuals and teams and then use it together with other data as the indicator for responding to alerts andimproving teams. Another purpose of the survey is for management to grasp 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 habitof always be aware of the condition of their teams and organizations by continuing this survey every month.

Initiatives in 2023

Employee Town Meetings
All officers presented the YOKOKU in business for their own departments in the form of a movie. The aim of this activity was to serve as the impetus for each
employee to see KOKUYO’s purpose as their own and to think about their own YOKOKU. We held a town meeting as an opportunity for officers andemployees to deepen their understanding by thinking and entering into dialogue together on the thoughts they could not fully express in their movies, why theychose that particular YOKOKU and the future that lies ahead.

- 133 STAKEHOLDER ENGAGEMENT

President’s AwardIn FY2020, we launched the President’s Award to honor initiatives that help build KOKUYO’s value. In 2023, the third year of the program, the prestigious
award went to the Initiative to Revitalize Human Resources in the HR Department.
The diverse initiatives established by the HR Department based on the concept of simultaneous growth of business and human resources include the KOKUYO
Marketing University and the KOKUYO Marketing Graduate School. The university is a program aimed at young to mid-career employees to develop thebasic core abilities they must learn regardless of their job type. Meanwhile, the graduate school is a program aimed at mid-career leaders in their 30s and40s. In addition, there is the 20% Challenge. This initiative was started to boost independent career formation, ability improvement and organizational
revitalization. It led to the creation of a system to allow employees to proactively take on challenges with respect to job offers on the organizational side.
These efforts have been recognized.

In-house Awards Program (THE AWARDS)
THE AWARDS is a new awards program we started in 2023. It is a program to praise our close
colleagues such as people and teams who are working hard on YOKOKU, people who are providing
support behind the scenes, and people who have grown. Our aim with the program is to create a culture
in which our employees put into words what they want to attempt and then receive support for taking on
those challenges from those around them.
We sought entries for the following four types of awards and presented them together with the
President’s Award in 2023.

Best YOKOKU Award
Teams and projects which take on YOKOKU and work on various experiments (self-nomination or
nomination by others)
Best Management Reform Award
Teams which have improved the well-being of their organization (self-nomination or nomination byothers)Most Supportive Person (MSP) Award
A colleague who supports and advances experiments in various aspects (nomination by others)
Most Improved Person (MIP) Award
A colleague who has undergone remarkable growth (nomination by others)
We selected award-winners by business and region. The winners then gathered from all over Japan at
our Shinagawa Office for the awards ceremony. We have shared their efforts with all employees suchas through our company newsletter.

- 134 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)- 135 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.

*SR-DR: safety review and design review
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 straps).

- 136 STAKEHOLDER ENGAGEMENT

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 officesupplies. Our quality management systems, as well as complying with the requirements specified in ISO 9001:2015, are continually improved. In other words,
we continually look for ways to make our workforce more quality consciousness and to improve customer satisfaction, believing that quality goes hand inhand 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:
・Workplace businesses: Head Office, Mie Plant, Shibayama Plant, Tokyo Shinagawa Office and Umeda Office・Global stationery businesses: Head Office, Tokyo Shinagawa Office, Ibaraki Delivery Center and Osaka Nanko Delivery Center・Kaunet Co., Ltd.: Tokyo Shinagawa SST Office*Current as of June 16, 2023

- 137 STAKEHOLDER ENGAGEMENT

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 andmitigate potential risks.
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 thecountry-specific standards. Additionally, we endeavor to do more to catch defects before the product is sold to customers.
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 the more 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 updating products or releasing newones, and we recently introduced robotics to enhance the reproducibility and accuracy of thetesting. For a product to satisfy customers, it must not only be reasonably priced and reliable; it mustalso have a wow-factor. We have started quantifying the extent to which a product has this.

Robotics technology for quality testing- 138 STAKEHOLDER ENGAGEMENT

Quality Assurance for Furniture
Our workplace businesses attained ISO 9001 certification in 1997. Since then, we have standardized the marketing, planning, design, production, andinstallation processes for furniture. We use a PDCA cycle to ensure that we always provide products and services that are tailored to the changing ways inwhich people work, study, and live. We continually strive to improve our manufacturing, delivery, and installation. We listen to feedback from customers anduse 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 product against the JapaneseIndustrial Standards and other industry standards, we measure it against our own standards, which are even higher 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 to prevent a similar defect. If there is a serious safety issue, theRisk Compliance Committee will determine the response. To limit the damage, we will notify therelevant authorities and issue notices on our website and in newspapers and other media to alert
consumers.

KOKUYO corporate site3）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-madebusiness cards and seals/stamps, and office furniture. The business has around 8,000 suppliers. It also has its own premium brand, Kaukore, whichemphasizing workplace productivity. At least 5,300 products are sold under this brand. Kaunet always strives to develop useful products based on ideas fromthe user’s perspective. To ensure that its products are safe and command confidence, Kaunet works together in the value chain to improve not only the qualityof 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 product against the JapaneseIndustrial Standards and other industry standards, we measure it against our own standards, which are even higher 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 concerns and problems customers experienceon 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 existing products 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.

- 139 STAKEHOLDER ENGAGEMENT

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 furnitureassembly will assemble and install the item in the customer’s office or home and take all the packaging away with them.

Initiatives in 2023

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 to provide 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 to enhance 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 an annual 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, therole of a team leader, effective strategies, and how they should support members.

- 140 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 collects and logs information on more than 200 inquiries a day received from customers into our VoiceDB database. The
feedback is then 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 (a communication tool) to distribute both positive feedback and issues which the Customer Support Center believes should beshared and recognized by all employees in particular. This practice has led to improvements. It is fostering a corporate culture in which we make
improvements by listening carefully to our customers.

Initiatives in 2023

Making use of customer feedback
We take the valuable feedback we receive from our customers seriously. We strive to make improvements on a daily basis so that we can provide even better
products and services from the point of view of our customers.

- 141 STAKEHOLDER ENGAGEMENTCustomer Harassment Response Guidelines
We receive valuable opinions and requests from our customers. On the other hand, we also receive some unreasonable complaints which include excessive
demands and abusive language. We are taking steps to prevent a deterioration in the working environment in accordance with the KOKYO Group Code of
Conduct.

- 142 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 and planning with regional
communities, while respecting regional culture and customs and encouraging their advancement.

Initiatives in 2023
Updated shareholder benefit program
We provide a shareholder benefit program to give shareholders a better understanding of our businesses and of the products and services we deliver. We
have added an option from December 2022 to make a charitable donation so that shareholders can more deeply appreciate our efforts to address material
issues. The donations will be used in social contribution activities such as to support children’s independence and learning.

- 143 STAKEHOLDER ENGAGEMENTComments from staff on the updated shareholder benefit program: Mr. Miura, head of IR officeOver the years, we’ve provided gift packs to shareholders so that they can get a better idea of our
products. More recently, we’ve pivoted to a sustainability strategy to aid our sustainable corporate
development. As part of this, we now want shareholders to engage 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: Ms. Nishibayashi, an employee engaging in the 20% Challenge
KOKUYO runs the 20% Challenge, an internal moonlighting program. Through this program, I applied
to do moonlighting at the IR office, as I wanted to learn skills for communicating with shareholders andother stakeholders. I had a great time working on the shareholder benefit program. It was exciting and I
learned a great deal. I’ll use the experience to spread the word about how KOKUYO is addressing thematerial issues.

Campus Art Awards 2023: 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 and high school. The award program
began in 2015, and 2,281 works were showcased this year. The theme for 2023 was titled “my sweet
hometown.” This theme focused on the landscapes, customs, traditions, events, cuisine, confectionary,and other motifs 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 notebooks featuring 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: “Godwatching over us” by Nao Sato, a second-year
student at Akita University of Art High School (theacademic year is as of FY2023)- 144 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 to Michinoku Future
Fund*, a scholarship program for students who lost their parents in the disaster. In 2024, the foundation
awarded its 14th annual set of scholarship. Scholarships were awarded to 46 students, securing them aplace in a higher or further education institution, where they can start their journey towards a brightcareer.
Students, graduates and foundation staff gather at a ceremony held in March every year for the benefitof the recipients of the scholarships as well as the students who are about to graduate. Supportercompanies were also able to participate in this ceremony for the first time in four years in March 2023
to hear directly from the students about their dreams and goals. (This ceremony will be held with a focus
placed on interaction between students in FY2024, so no supporter companies will participate.) We
remain as committed as ever to supporting the good work of the foundation.

The sendoff event held for the first time in four years
in FY2023*Founded by Rohto Pharmaceutical, Calbee, and Kagome, Michinoku Future Fund provides higher or further education
scholarships to students who lost their parents in the March 2011 disaster, on the belief that future generations are thefoundation for the recovery. There have been 1,145 scholarship recipients since the foundation of the fund (as of April 2024).
Most of the students have finished their schooling and are working 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, welaunched a community outreach program called Chasing Big Dreams with Small Notebook. This year
marked the eighth year of the program. Volunteers from KOKUYO’s workforce visit an elementary
school in Yunnan, China. They conduct a lesson and organize games with the children to forge ties withthe community. The school receives a donation from KOKUYO and the children receive KOKUYO
notebooks.

With everyone’s good will, we make a huge
differenceThis was the first time members of another operating company (LAMEX) participated in KOKUYO’ssocial contribution event. It provided an opportunity to deepen mutual understanding and interaction.

Yong‘an Primary School,Dali Bai Autonomous
Prefecture,Yunnan Province- 145 STAKEHOLDER ENGAGEMENTSupply Chain Management
Basic Concepts
Rapid economic globalization has given rise to colossal multinationals. Many are extending 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.

Sustainable procurement efforts
Following on from 2022, we again surveyed 533 suppliers to confirm the status of their sustainability efforts in 2023. Of these suppliers, 482 responded tothe survey (response rate: 90.4%). We fed back the results to the suppliers who responded to the survey. We will continue to promote efforts in 2024 toreceive responses from all our suppliers. We will also begin operating standards for paper and timber procurement as a responsibility of a company whichuses a lot of paper, wood and other forest resources.
No. of suppliers533

No. of respondents

482

Return rate

90.4％

Image of the survey feedback

We have revised the KOKUYO Group Sustainable Procurement Policy and KOKUYO Group Sustainable
Procurement Guidelines
We have also clarified the establishment of internal controls in the KOKUYO Group Sustainable Procurement Policy and KOKUYO Group Sustainable
Procurement Guidelines in line with the revisions to the standards for evaluating and auditing internal controls relating to finance reporting as well as the
progress in disclosures relating to non-financial information such as sustainability and revisions to the Committee of Sponsoring Organizations of the Treadway
Commission (COSO) report.

- 146 SUPPLY CHAIN MANAGEMENTKOKUYO Group Sustainable Procurement Policy
The KOKUYO Group Sustainable Procurement Policy enshrines our commitment to ensuring that our procurement activities contribute to a sustainable planetand society. Under this policy, we communicate our belief in co-creation with empathy to our supply chain partners, work to build mutual understanding andtrust with them, and continue working with them to fulfill our collective social responsibility to support the development of society.

KOKUYO Group Sustainable Procurement Policy
Desiring a sustainable planet and society, we commit to corporate social responsibility throughout our supply chain. We will build trust with 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 tolerate sexual harassment, workplacebullying/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 and safety. We will
pay fair wages and expenses, provide employee welfare programs, offer fair employment contracts, and comply with legal and regulatory
requirements concerning employee rights. We will encourage sustained and self-led efforts to improve the workplace 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 business activities, and organize initiatives that
protect the environment and support biodiversity.

■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 and international
norms. We will maintain a strict policy of non-engagement with organized crime groups, including groups (including those labelled in Japan as “antisocial forces”) and another group that threatens public order or security. We will refuse all demands from such groups and never do any businesswith them. In these ways, we will honor the rights of our suppliers, prevent extortion, bribery, and all other forms of corruption, and ensure fair andhonest trade practices.

■Information security
We will safeguard commercially sensitive information (including information about sales, technology, and business strategy) and personal
information from loss and leaks. 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.

- 147 SUPPLY CHAIN MANAGEMENTKOKUYO Group Sustainable Procurement Guidelines
We have established the matters we want to achieve together with our business partners as the KOKUYO Group Sustainable Procurement Guidelines basedon the KOKUYO Group Code of Conduct and the KOKUYO Group Sustainable Procurement Policy to ensure the earth and society continues to remainsustainable.

KOKUYO Group Sustainable Procurement Guidelines
To ensure that our supply chain contributes to a sustainable planet and society, we established the KOKUYO Group Procurement Guidelines. Basedon the Sustainable Procurement Policy, these guidelines clarify the requirements and expectations for both KOKUYO and our suppliers.
1. 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 andprioritize 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 asnecessary 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.
2. 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 nevertolerate 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 withorganizations 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 makereasonable 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.
3. Health and safety
We will comply with Japan’s Industrial Safety and Health Law and other legal and regulatory requirements concerning health and safety. We
will pay fair wages and expenses, provide employee welfare programs, offer fair employment contracts, and comply with legal andregulatory requirements concerning employee rights. We will encourage sustained and self-led efforts to improve the workplace and work toprevent 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, we will consider
international standards.
3-3 Reasonable wages and expenses
We will comply with all applicable laws and regulations regarding employee compensation, including requirements for minimum wage,
overtime pay, and legally mandated expenses and rent discounts). We will pay a living wage—a wage that covers the employee’s
basic needs.

- 148 SUPPLY CHAIN MANAGEMENT

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 toemployees 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 and preventive action.
3-6 Workplace hazards
We will identify, assess, and control the risk of employees becoming exposed to biological, chemical, or physical hazards.
3-7 Considering workload
As part of our efforts to control the risk of occupational accidents and disease, we will identify and assess employees’ physicalworkload.
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.
4. Environment
As part of our corporate social responsibility, we will support environmental conservation at a global scale and involve local communities inthese efforts. We will comply with environmental laws, integrate a concern for the environment into all our business activities, 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 greenhouse emissions.
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 andcontrol 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 health and theenvironment. 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, andencourage voluntarism.
5. 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 thoselabelled in Japan as “anti-social forces”) and another group that threatens public order or security. We will refuse all demands from suchgroups and never do any business with them. In these ways, we will honor the rights of our suppliers, prevent extortion, bribery, and all otherforms of corruption, and ensure fair and honest trade practices.

- 149 SUPPLY CHAIN MANAGEMENT

5-1 Promoting compliance
We will comply with local legal and regulatory requirements, societal norms, and corporate ethics. We will inform employees about theneed for such compliance.
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 and demand
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 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.
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 the company’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 information that 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 in question to confirm thatthey are neither fueling nor contributing to human rights abuses, environmental destruction, corruption, or conflict in conflict-affected or
high-risk areas.
5-9 Ensuring the reliability of reports
To ensure the reliability of reports (including non-financial information, we do not tolerate the falsification of records or applications andreports containing serious falsehoods.
6. Information Security
We will safeguard commercially sensitive information (including information about sales, technology, and business strategy) and personal
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.
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.

- 150 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 theinformation 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 a zero-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 thisframework 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.

GRI Guidelines
The GRI Guidelines serve as a framework for reporting environmental, social, and governance information. The guidelines are provided 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 a company’s long-term value can be measured.

- 151 ENDORSEMENT

Awards and Accolades
Inclusion in ESG Indexes (as of 2024.05)
Name of Recognition

Date of Announcement

Results

FTSE Blossom Japan Sector
Relatives Index

June 2023

Selected for inclusion in index

MSCI ESG Select Leaders
Index

June 2023

Selected for inclusion in index

MSCI Japan Empowering
Women Index (WIN)June 2023

Selected for inclusion in index

S&P/JPX Carbon Efficient
Index

June 2023

Selected for inclusion in index

Morningstar Japan ex-REIT
Gender Diversity Tilt Index

April 2023

Selected for inclusion in index

Sustainability Evaluations (as of 2024.05)
Name of Recognition
MSCI ESG Rating

Date of Announcement
February 2024

Results
Score:AA
Climate Change B- (Management)

CDP

December 2023

Forests C (Awareness)
Water security: C

FTSE ESG Rating

June 2023

Score:2.6

Sustainalytics ESG Risk Rating

June 2023

Score:8.7(Negligible Risk)

Other Evaluations and Awards (as of 2024.05)
Name of Recognition

Date of Announcement

Results

CSR Companies Ranking
2024 (Toyo Keizai Inc.)

February 2024

Overall ranking: 282nd

4th Nikkei SDGs
Management Survey (Nikkei
Inc.)

November 2023

Grade: 3.5 out of 5

6th Nikkei Smart WorkManagement

November 2023

Grade: 3.5 out of 5

- 152 AWARDS AND ACCOLADESAwards and Certifications for Sustainability Initiatives

March 2024
Recognition as a 2024 Certified Health &Productivity Management Outstanding
Organization (White 500) and a 2024
Certified Heath & Productivity Management
Outstanding Organization (Large Enterprise
Category)

September 2023
Yuimori sustainable wooden furniture brandearns the top prize at the 6th EcoPro Awards*Photo: Lounge chairs and tables in the Yuimori wooden
furniture brandAugust 2023
KOKUYO Receives a Letter of Appreciationfrom the GENKI NET for Creating a
Sustainable Society NPO for Our Initiativewith the Kaunet Loopa Paper Resource
Recycling Service

Awards for Products and Services

April 2024
Four Facilities and Three Products WhichKOKUYO Worked on Win the Highest Award
and Other Awards at the iF DESIGN AWARDInternational Design Awards

November 2023
KOKUYO NO YOKOKU Brand Site Wins the
Corporate Site Award Grand Prix in the
Corporate Grand Prix Category at the 11th
Web Grand Prix

*In the photo, the images in the first row from the left show
Pallo chairs and HAKUHODO Technologies office;the images in the second row from the left show FUJIFILM
Creative Village and the Any way office furniture series;
and the images in the third row from the left show THE
CAMPUS HALL “CORE” open communication hall,
SoloTime Futako Tamagawa and Liite casual chairs- 153 AWARDS AND ACCOLADES

November 2023
Hello! Family. Series in the Parent and Child
Monitoring IoT brand Wins the ExcellenceAward in the General Safety Measures andMonitoring Category at the BabyTech ®
Awards 2023

October 2023
15 Products Win Awards Including the Gold
Award and BEST100 at the GOOD DESIGN
AWARD

October 2023
Two Facilities Which KOKUYO Worked on theInterior Design Win the Silver Award at the
57 th Japan Sign Design Award*In the photo, the images in the first row from the left show

*In the photo, the images from the top show INFORIUM

Smart Double Clip, Any way office furniture series,

Clipboard (Thin and Silent Clips), 2WAY Compact Scissors

September 2023
KOKUYO Wins the Special Achievement
Award at the PHASE FREE AWARD 2023

TOYOSU INNOVATION CENTER and Innovation Center
MIZUNO ENGINE(HACOAKE) and C-table office lounge tables; the images
in second row from the left show HASA high-grade scissors,
PERPANEP German-designed notebooks, pallo chairs, n.5
satellite-style multipurpose space for employees, and Liite
casual chairs; the images in the third row from the left show
FUJIFILM Creative Village, fore moving panel soundabsorbing panel, Tsukue + school desk attachment, THE
CAMPUS HALL “CORE” open communication hall, andOSFA adjustable sofas

July 2023
KOKUYO Wins the 2023 Adobe Marketo
Engage Champion Award

July 2023
KOKUYO the Only Japanese Company to Win
at the Slack Spotlight Awards 2023

- 154 AWARDS AND ACCOLADES

June 2023
KOKUYO’s @office Office Supplies Purchasing
System Takes First Place for Overall Customer
Satisfaction in the J.D. Power 2023 Corporate
E-commerce Customer Satisfaction Survey(SM)April 2023
KOKUYO wins 2023 Red Dot Design Awardfor pallo and Liite chairs.

*In the photo, lower image shows pallo chairs and the top
right image shows Liite chairs.

April 2023
KOKUYO booth wins Grand Prix in the
ORGATEC TOKYO 2023 BESTPRESENTATION AWARDS Supported by ELLEDECOR Magazine for second consecutive
year.

*The photo shows part of the KOKUYO’s booth at theexhibition (an interactive model with a festival theme).

- 155 AWARDS AND ACCOLADESEditorial policy
We recently restated our philosophy and embarked on a program of transformation to achieve our next growth goal. In 2024, we published Integrated
Report 2024, which gives our shareholders and other stakeholders a clear idea of our new strategic direction and how we aim to achieve sustainablecorporate development and create value on the road to 2030 and beyond. By reading the report, you will discover how we defined our value-creation story
and material issues, and how we have aligned these issues with our business strategies. By exploring this website, you can learn about our initiatives foraddressing material issues and our other sustainability initiatives. We have included plenty of referential data too.

Period to which the integrated report pertains
Integrated Report 2024 pertains to the fiscal year ended December 31, 2023.

*However, it also includes information that predates or postdates that fiscal year.

Report scope
Integrated Report 2024 focuses on KOKUYO CO., Ltd., 34 consolidated subsidiaries, and six non-consolidated subsidiaries and associated companies (192
sites).

- 156 EDITORIAL POLICY