KOKUYO GROUP PROFILE 2021

English ver.

KOKUYO's CSR
Charter
KOKUYO CSR

Corporate Proﬁle
KOKUYO Materiality

KOKUYO's Main
Business Domains
Environment

KOKUYO's Initiatives
and History
SocialInitiatives for Futureand Society

KOKUYO's Various
Initiatives

Introduction of KOKUYO s
Initiatives in 2020

Governance

Third-Party
Assessments

Content Index

Message from the
President

KOKUYO's CSR Charter
While remaining profitable and honest in its business practices, KOKUYO conducts business that is necessary
for society.
In addition to complying with laws and regulations, we seek to maintain continuity of our business byacquiring the trust of all related stakeholders, investors, and, of course, our customers by fulfilling our social
responsibilities as a corporate citizen.

For Our Customers

1

Without being satisfied with the present conditions, we continue to improve the safety and quality of2

Strive to continually innovate society through our business operations by developing new products andour entire product line and services.
services.

For Regional Communities

1

Strive to be a trusted‘corporate citizen’on both regional and national levels via proactive interaction andplanning with regional communities, while respecting regional culture and customs and encouraging theiradvancement.

For Environmental Conservation

1

Concentrate the wisdom of each of our employees, and align the actions of our entire company in order2

By developing Eco Products, we strive to decrease the environmental burden over the life cycle of these3

Contribute towards the advancement of a‘low carbon society’by proposing revolutionary work styles

to assist in reaching solutions for the common environmental problems facing the world today.
Products and to introduce new environmental engineering and green procurement techniques.
and environments, and decrease society's overall burden on the environment.

Corporate Activities

1

Conduct transparent, just, and free competition and business transactions while keeping sound and2

In order to become a trusted company, we strive for business partner relations that are consistently fair3

Recognize our responsibility to increase our corporate value for stockholders, and maintain a corporate

correct relations with politicians and governmental bodies.
and built upon a foundation of reciprocal cooperation, allowing for mutual growth.
management style that earns the trust of society through its transparency and virtue.

Respect for Human Rights

1

Respect the human rights of all individuals involved with or affected by all of our corporate activities.
We support work environments free from discrimination, and do not approve of child labor or forcedlabor practices.

2

Strive to accept each and every employee's individual character and personal values, and become
a company where many different human resources can fully express their abilities and develop
themselves.

1

KOKUYO Group CSR Report 2021

KOKUYO's CSR
Charter
KOKUYO CSR

Corporate Proﬁle
KOKUYO Materiality

KOKUYO's Main
Business Domains
Environment

KOKUYO's Initiatives
and History
SocialInitiatives for Futureand Society

KOKUYO's Various
Initiatives

Introduction of KOKUYO s
Initiatives in 2020

Governance

Third-Party
Assessments

Content Index

Message from the
President

Contents●

KOKUYO's CSR Charter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 001●

Corporate Proﬁle . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 003●

KOKUYO's Main Business Domains . . . . . . . . . . . . . . . . . . . . . . . 004●

KOKUYO's Initiatives and History . . . . . . . . . . . . . . . . . . . . . . . . . 006●

Initiatives for Future and Society . . . . . . . . . . . . . . . . . . . . . . . . . 010●

KOKUYO's Various Initiatives . . . . . . . . . . . . . . . . . . . . . . . . . . . . 011●

Introduction of KOKUYO s Initiatives in 2020 . . . . . . . . . . . . . . . 012●

Message from the President . . . . . . . . . . . . . . . . . . . . . . . . . . . . 014. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 051
Respect for Human Rights . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 051
Work Style Reform . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 052
Promotion of Diversity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 055
Human Resources Management . . . . . . . . . . . . . . . . . . . . . . . . 058
Employee communication . . . . . . . . . . . . . . . . . . . . . . . . . . . . 062
Employees Safety . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 063
Employees Health . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 066
With Business Partners . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 070
Providing Peace of Mind and Safety to Customers . . . . . . . . . . . 074
Dialogue with our Customers . . . . . . . . . . . . . . . . . . . . . . . . . . 079
Social Contribution . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 081
Providing new values . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 088● Governance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 093
Inculcating compliance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 093
Risk Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 094● Third-Party Assessments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 098
Awards and Accolades . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 098
KOKUYO CSR Report 2020: Survey Results . . . . . . . . . . . . . . . . 101● Content Index . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 103
GRI Standards content index . . . . . . . . . . . . . . . . . . . . . . . . . . 103
ISO26000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 113● social. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 016● KOKUYO Materiality . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 023● Environment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 027
Environmental Management . . . . . . . . . . . . . . . . . . . . . . . . . . . 027
Global Warming Preventive Measures . . . . . . . . . . . . . . . . . . . 035
Resource-saving and Recycling Measures . . . . . . . . . . . . . . . . . 038
Legal Compliance and Pollution Prevention . . . . . . . . . . . . . . . 040
Developing Environmentally Friendly Products and Services . . . 042
Supporting biodiversity and promoting . . . . . . . . . . . . . . . . . . . 045●

KOKUYO CSR

environmental communication

Reporting Period
January 1, 2020 to December 31, 2020
Publication Period
Report published: May 2021
Next report to be published: April 2022
Previous report published: June 2020
Scope of the Report
The KOKUYO Group refers to KOKUYO Co., Ltd., and its domestic
and overseas Group companies, comprising 20 consolidated subsidiaries,
certain activities involve other subsidiaries and aﬃliates.
Reference Guidelines
・ISO26000
・Japanese Ministry of the Environment Environmental Reporting Guidelines 2012
・GRI (Global Reporting Initiative) Sustainability Reporting Guidelines 4th Edition

2

KOKUYO Group CSR Report 2021

KOKUYO's CSR
Charter
KOKUYO CSR

KOKUYO's Main
Business Domains

Corporate Proﬁle
KOKUYO Materiality

Environment

KOKUYO's Initiatives
and History
SocialInitiatives for Futureand Society

KOKUYO's Various
Initiatives

Introduction of KOKUYO s
Initiatives in 2020

Governance

Third-Party
Assessments

Content Index

Message from the
President

Corporate Profile

Company name

KOKUYO Co., Ltd.

Head Office location

6 -1-1 Oimazato-minami, Higashinari-ku, Osaka-shi, Osaka 537-8686 JAPAN

Telephone+81- 6 - 6976-1221 (main switchboard)

Number of employees

6,882 (Consolidated) 2,241 (Parent company)*As of the end of December 2020

Stock listings

Tokyo Stock Exchange (First Section)

CapitalJPY 15.8 billion

Sales volume

JPY 300,6 billion (Consolidated from January 1 to December 31, 2020)

Business description

Stationery manufacturing, purchasing, and sales;
office furniture manufacturing, purchasing, and sales;
space design and consultation, etc.

Financial data graphs

Sales & Operating profit rate
(JPY billion)

330
320
310

5.57%

Consolidated sales composition

5.81%

5.02%

(%)
6.0

5.23%
4.93%

4.5

290

4.0

280

3.5

270

3.0

260

2.5

240

307

315

315

320

300

2016

2017

2018

2019

2020

Sales

Operating profit rate

Dec.

Dec.

Dec.

Dec.

2.0

Spatial Value Domain

21.7%

5.0

300

250

Global Stationery Domain

5.5

44.0%

Sales in FY2020

300

billion JPY

Business Supplies Domain

34.3%

1.5

Dec.
* The sales ratios were calculated based on sales to external customers.

3

KOKUYO Group CSR Report 2021

KOKUYO's CSR
Charter
KOKUYO CSR

Corporate Proﬁle
KOKUYO Materiality

KOKUYO's Main
Business Domains
Environment

KOKUYO's Initiatives
and History
SocialInitiatives for Futureand Society

KOKUYO's Various
Initiatives

Introduction of KOKUYO s
Initiatives in 2020

Governance

Third-Party
Assessments

Content Index

Message from the
President

KOKUYO’s Main Business Domains
In 2019, KOKUYO newly established its business domains.
The domains are KOKUYO’s new initiatives and challenges
designed to expand the areas of value provided to customers.

Spatial Value Domain

We will design and propose spaces
with an emphasis on improving work
environment of working people toaccommodate changes in work styles.

We will face the needs arising from increasingly diversifying
work styles, and conduct businesses that include objects
and actions, as well as services to improve future work
styles and working people’s ways of life. We will propose
spaces that can make our customers’ work, learning, andliving more creative and comfortable.
Manufacturing, delivery, and assembly of furniture, and spatial design andconstruction for offices, medical institutions, educational institutions,and public offices and agencies; work style consulting; manufacturing,
importing, and sales of interior and furniture (ACTUS), etc.

4

KOKUYO Group CSR Report 2021

Business Supplies Domain

Global Stationery Domain

We plan to “deliver” solutions fromstationery to office furniture to offer
comfort of “using” solutions.

We provide stationery that fosters
creativity in our customers’ work,
learning, and living both in Japanand overseas.

KOKUYO is unique in its capability to deliver acomprehensive range of stationery and office furniture andsupplies. We provide support to improve the efficiency ofthe management of office supplies at customers and sales
order operations at retailers. We provide services to allow
customers to use our tools without stress.

Stationery inspires the creativity of its users. We deliver
stationery that enhances our customers’ work, learning, andliving, thereby conducting businesses that provide services
through objects. We work to meet diversifying needs ofcustomers through manufacturing and sales of stationery inJapan and overseas as well as other businesses.

“Kaunet,” which sells office products to individual and corporate
customers; “KiSPA,” a web order system for stationery shops;
proposal and support system for stationery and office supplies purchasesystem for offices

Manufacture and sale of stationery within Japan and overseas, such asin Shiga, Tottori, China, and India; development and sale of creative
picture book series and tools for creativity; document digitization
service @Tovas, etc.

5

KOKUYO Group CSR Report 2021

KOKUYO's CSR
Charter
KOKUYO CSR

Corporate Proﬁle
KOKUYO Materiality

KOKUYO's Main
Business Domains
Environment

KOKUYO's Initiatives
and History
SocialInitiatives for Futureand Society

KOKUYO's Various
Initiatives

Introduction of KOKUYO s
Initiatives in 2020

Governance

Third-Party
Assessments

Content Index

Message from the
President

KOKUYO’s Initiatives and History
1905

1914

1959

1965

1908

1932

1960

1966

1913

1956

1964

1975

1905

Zentaro Kuroda opened the
Kuroda Ledger Cover Shop, ashop manufacturing covers
for Japanese-style accountledgers (wacho)

1908

Production of wacho began

1913

Production of readymade
Western-style account edgers
began

1914

Company name changed to
Kuroda Kokkodo.

1959

Survey field notebooks
released

Started production of
accounting slips, invoices,
duplicate copybooks, andletter paper

1960

Entry into the office furniturebusiness

1932

Stationery pads with highquality colored paperboard
released

1961

Company name changed to
KOKUYO Co., Ltd.

1956

Flat files released

1964

Scrapbooks released

Filing cabinets released

6

1965

Steel desks released

1966

Office swivel chairs released

1969Japan’s first Live Office is born

1975

Campus Notebooks released
Started manufacturing of
furniture for educational
facilities

KOKUYO Group CSR Report 2021

1981

2003

2009

2017

1983

2005

2015

2018

2000

2008

2016

2019

1981

KuruKuruMeka (adjustablechild desk) released

1983

File box FS released

1996

Established overseas groupcompanies and started
manufacturing, sales, andimport and export operationsof stationery and furniture

1998
2000

Initiatives for Universal Design
began
Kaunet established“PunyoPunyo Pin,” universal
design-compliant thumb tacks
released

2002

KOKUYO DESIGN AWARDS
began

2003

2004

2005

KOKUYO K Heart established2009“Kadokeshi” plastic eraser
releasedHarinacs (staple-free stapler)released

2011

Shares of Camlin Limited,
India, acquired and its
company name changed to
KOKUYO Camlin

Segmented all KOKUYO Co.,
Ltd. businesses into separate
companies and moved toholding corporation system
100th anniversary with theredesign of the company logo

2013

Kaucore launched2015

Businesses reintegrated

KOKUYO invested in Actus Co.,
Ltd.

2008

The Eco X-mark initiative began

Shop and ca
THINGS” opened
Office chair “ing” released

2018

Adhesive product brand“GLOO” released2019

Launch of IoT-powered
stationery:
Shukudai Yaruki Pen“DAYS OFFICE” furniture
brand launched

Dot Liner (glue tape)released

2006

2017

2016

In-house office bag Mobaco
released

Picture book series “The Face
Notebook” released

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KOKUYO Group CSR Report 2021

Evolution of Campus Notebooks

1975

1983

1st-generation Campus Notebooks

2nd-generation Campus Notebooks

In 1959, “thread-less binding” notebooks,
which were completely different from the thenmainstream thread binding notebooks, werecommercialized. This series of Campus Notebooks
were launched for students throughout Japan.

This series were marked with “A ruled line” and“B ruled line” in alphabets and images of ruled
lines on the cover page to make it easy to find atstores. This series, with a new logo and casual andlong-lasting design adopted, also gained a foothold
among working people.

1969

1990s

Japan’s first Live Office

Large-scale free-address office

Japan’s first Live Office is born. Our own
KOKUYO designed office becomes a live
showroom allowing visitors to see how ouremployees actually work using our products.

KOKUYO is one of the first to catch on to theevolution of devices, and implements the freeaddress office where employees share spaceand no longer need their own individual desk.

Campus Notebooks has
continuously evolved to accommodate
the needs of users.

Evolution of the Live Office
Applying the results of research on
making things, creating spaces, andworking styles to make available theresults in the form of a showroom.

8

KOKUYO Group CSR Report 2021

1991

2000

2011

3rd-generation Campus Notebooks

4th-generation Campus Notebooks

5th-generation Campus Notebooks

This series was designed with attention to details
for greater originality, adopting vivid colors thatwere not used in previous-generation products
and a drastic change of design with the logo
placed vertically.

In order to improve customer satisfaction, thisseries was developed after thoroughly researchingmaterials. As a result of continuous efforts, we
succeeded in developing a new type of cloth thatis tear resistant even after the notebook is filled
up to the last page.

Changing the surface finish of the spine cloth
made it easy to use pens to write on this series.
Also, changing the specifications of base paper
and ruled lines of the pages made the notebooks
easier to draw lines on and use.

2000s

2010s

Now and in the future

Large-scale all-wireless LAN office

Offices supporting cloud work

New and Better Experiences Office

A wireless LAN system allows staff freemovement anywhere inside the company.
The practical use of IP mobile phones enables
cost down.

By making the best use of evolving cloud
support, better team communication isestablished. A new way of connection to outside
the company is also created.

As society becomes increasingly uncertain andchangeable, the role of the office as a spacethat accelerates inner creativity has grown inimportance. For this reason, at KOKUYO we areproposing a new way of working that offers “newand better experiences.”

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KOKUYO Group CSR Report 2021

KOKUYO's CSR
Charter
KOKUYO CSR

Corporate Proﬁle
KOKUYO Materiality

KOKUYO's Main
Business Domains

KOKUYO's Initiatives
and History

Environment

SocialInitiatives for Futureand Society

KOKUYO's Various
Initiatives

Introduction of KOKUYO s
Initiatives in 2020

Governance

Third-Party
Assessments

Content Index

Message from the
President

Initiatives for the Future and Society
KOKUYO supports ideas that shape the future
and to future environment.

KOKUYO Design Awards

Work Style Research

Yui no MoriKOKUYO Design Award is a design competition
that started in 2002 aimed at attracting superior
product designs for commercialization from a wide
range of users based on their perspectives. Hit
products born from past competitions include the“Kadokeshi” plastic eraser. The competition has
developed into an international product design
award in recent years.

The office research center was established in1986. Research on related products and spaces
and office consultation activities began. Provide
information through research and information
journal ECIFFO, and work style strategy
information journal WORKSIGHT.

Through the Yui no Mori Project that started in2006 jointly with Shimanto Forest Cooperative inKochi Prefecture, KOKUYO is conducting forest
conservation activities focusing on forest thinningand the efficient utilization of timber.

ReEDEN Project

Camel Art Foundation

KOKUYO Product Shiga Co., Ltd. is conducting
activities to conserve reeds, which play animportant role in maintaining water quality
and biodiversity of Lake Biwa. By harnessing
production technologies developed to date,
KOKUYO Product Shiga has been using reeds to
produce copier paper and notebooks and sellingthem under the ReEDEN Series brand name.

The principal purpose of CAF is to increaseawareness of art in India. By offering platforms
for artistic activities and hosting exhibitions, CAF
is providing opportunities for budding artists todisplay works and for professional artists to raise
their profile.

10

KOKUYO K Heart Co., Ltd. andHeartland Co., Ltd.
KOKUYO’s started hiring persons with disabilities
in 1940 with the employment of students from the
Osaka Prefectural Central Hearing Support School.
KOKUYO provides job opportunities for employeeswith various disabilities at KOKUYO K Heart andHeartland, special subsidiaries engaged in printing
and consignment operations, and agricultural
production respectively.

KOKUYO Group CSR Report 2021

KOKUYO's CSR
Charter
KOKUYO CSR

Corporate Proﬁle
KOKUYO Materiality

KOKUYO's Main
Business Domains
Environment

KOKUYO's Initiatives
and History
SocialInitiatives for Futureand Society

KOKUYO's Various
Initiatives

Introduction of KOKUYO s
Initiatives in 2020

Governance

Third-Party
Assessments

Content Index

Message from the
President

KOKUYO’s Various Initiatives
KOKUYO’s challenge to realize more creative and fruitful work,
learning and living for our customers.

Members-only work lounge“Creative Lounge MOV”

KOKUYO’s Picture Book

KOKUYO, through its business concierge service,offers wide-ranging services such as office
operation and document design that facilitates
greater productivity. By offering services basedon the concept of “inspiration and ideas that go
one step ahead,” we will provide a comfortableenvironment for people who work in offices.

Creative Lounge MOV is a members-only worklounge for people that practice new work styles.
In this lounge, people from different culture andindustries meet and create a new movement
through exchange of ideas and resources –a work
style typical of Shibuya, Tokyo.

Based on the themes of “parent-childcommunication” and “fostering creativity,”
KOKUYO manufactures and sells workbooks, suchas “The Face Notebook” and “Fashion Notebook,”
and painting tools, such as “Mix Color Pencils”
and “Clear Crayons”.

Disaster Solutions

Shop and café “THINK OF THINGS”

Interior and lifestyle “ACTUS”

KOKUYO proposes “disaster solutions” asa company thoroughly familiar with officeenvironment. We select emergency supplies
most suitable for individual offices. If there are
emergency supplies that are not available or areinconvenient to use, we do research from scratch,engaging in innovation and making improvements
to devise each necessary item.

“Think of Things” is a lifestyle shop and café
directly managed by KOKUYO and stocked withproducts that can be considered tools to produce
stimulation and discoveries in both daily life andwork. This facility is designed to create a place
where we can think about and create values that
KOKUYO can provide for the future.

ACTUS was established as a pioneering company
in dealing in modern interior design imported from
Europe. As a lifestyle company proposing total
categories of products related to living essentials
surrounding “food, clothing and housing”, ACTUS
suggests “high-quality and meticulous living”.

Business Concierge

11

KOKUYO Group CSR Report 2021

KOKUYO's CSR
Charter
KOKUYO CSR

Corporate Proﬁle
KOKUYO Materiality

KOKUYO's Main
Business Domains
Environment

KOKUYO's Initiatives
and History
SocialInitiatives for Futureand Society

KOKUYO's Various
Initiatives

Introduction of KOKUYO s
Initiatives in 2020

Governance

Third-Party
Assessments

Content Index

Message from the
President

Introduction of KOKUYO’s Initiatives in 2020
KOKUYO rolled out various initiatives with people,
the world, and the future in mind.

Commercialization of the Monochrome Notebook,
recipient of the Merit Award at the KOKUYODESIGN AWARD 2018

Launch of AIRTRIEVE, a conferencetable that prevents dispersal of airborne droplets
AIRTRIEVE is a conference table that sucks in airborne droplets and exhalations
generated during office meetings, preventing the dispersal of airborne droplets. It
seeks to provide peace of mind by improving indoor hygiene.

The Monochrome Notebook contains grey paper that can be
written on with black or white ink. It utilizes one of theproperties of human eyesight, namely that letters which arelighter or darker than the paper they are written on cannot beeasily read at the same time. The notebook received widespreadpraise for proposing new and intuitive ways to write.

Launch of the official KOKUYO
Workstyle Shop direct-sales
e-commerce website
At KOKUYO Workstyle Shop, KOKUYO’s official
direct-sales e-commerce website, approximately
4,000 items are available for individuals topurchase. As teleworking becomes increasingly
widespread, the website offers products forbuilding work environments at home, as well as
products for building living environments.

Opening of Kau-Box, a new Kaunet showroom
Kau-Box has now opened on the first floor of KOKUYO’s
Tokyo Shinagawa Office. The showroom displays the
Kaucore Premium range of original products alongsideother office supplies and furniture, and also offers alayout consultancy service.

12

KOKUYO Group CSR Report 2021

Commendations
Shukudai Yaruki Pen receives the Kids
Design Award
The Shukudai Yaruki Pen, a new form of IoT-powered
stationery that supports the habituation of studying athome, has received the Kids Design Award in the categoryof “Designs that stimulate kids’ inner creativity andfutures,” at the 14th Kids Design Award.

KOKUYO Received World’s Prestigious
Design Award “iF DESIGN AWARD” forFour Products
KOKUYO DESIGN AWARD 2021 with
“POST-NORMAL” as the ThemeThe 360°gliding chair “ing,” conference room table“CALM,” and the “True Ruler” which received the
Merit Award at KOKUYO DESIGN AWARD 2014
were selected for the iF DESIGN AWARD in the“Product” design category, while the office disastercountermeasures storage system “PARTS-FIT” wasselected for the “Packaging” design category.

We are bearing witness as the entire world undergoes
major change, and this has inspired us to reevaluate thevalue of the objects that surround us. The 2021 edition of
the KOKUYO DESIGN AWARD reflected on the importanceof thinking about and creating products that will continue
to be widely cherished over the long-term. A total of 1,401
submissions were received from Japan and overseas, fromwhich four prizewinners—including the Grand Prix winner
RAE—were selected.

Recognition as White 500 Organizations Underthe 2021 Certified Health & Productivity
Management Outstanding Organization
Recognition Program
KOKUYO and Kaunet were recognized as White 500
organizations under the 2021 Certified Health &Productivity Management Outstanding Organization
Recognition Program selected jointly by the Ministry of
Economy, Trade and Industry and the Nippon Kenko Kaigi.

Release of concept book that
proposes new ways of working
and office designs
KOKUYO has released Work
Transformation, a concept book that
proposes ideal future ways of working
and office designs—both of which
are changing due to the impact of
COVID-19, the widespread uptake ofteleworking, and the shift to digital.
To coincide with the release of thebook, KOKUYO employees held online
seminars explaining and discussing theconcepts it contains.

* The Certified Health & Productivity Management Outstandin
Organization Recognition Program honors outstanding enterprises
engaging in health and productivity management based on
their efforts made in line with the health-related issues in local
communities and other initiatives.

Yui-no-Mori Project receives theForest Guardian Prize at the Corporate
Philanthropy Awards
The project was praised by the judging committee,
who commented: “We would like to recognize
KOKUYO’s initiatives, which seek to generatesynergistic effects between environmental
conservation activities and regional economy
revitalization activities.”

Launch of “Genderless Resume”
In response to increasing calls to respect diverse
forms of individuality, KOKUYO launched a resume
that contains no space for an applicant to mark theirgender. KOKUYO thereby hopes to increase customer
choice when it comes to purchasing resumes.

Run by the Japan Philanthropic Association, the Corporate
Philanthropy Award seeks to recognize and draw public attention tosocial contribution activities that organically and continually makeuse of a company’s management resources (personnel, expertise,technologies, information, etc.) to resolve societal issues.

13

KOKUYO Group CSR Report 2021

KOKUYO's CSR
Charter
KOKUYO CSR

Corporate Proﬁle
KOKUYO Materiality

KOKUYO's Main
Business Domains
Environment

KOKUYO's Initiatives
and History
SocialInitiatives for Futureand Society

KOKUYO's Various
Initiatives

Introduction of KOKUYO s
Initiatives in 2020

Governance

Third-Party
Assessments

Content Index

Message from the
President

Unveiled in 2021, our long-term vision: CCC 2030
In February 2021, we unveiled CCC 2030, our long-term vision for 2030. We formulated this vision on the belief that weneeded a longer-term perspective to succeed in a rapidly changing business landscape.
CCC 2030 (CCC stands for Change, Challenge, Create) outlines assumptions about how the world will change in 10 to 20
years’ time and sets out a vision of how we as an organization must change accordingly.
The direction in which the world is changing comes as no great surprise. Much more startling is the pace of change, which
has been accelerated by Covid-19. The pandemic has hastened the arrival of a new normal, entrenching new digital trends
into workspaces and learning spaces.
To succeed in this new normal, we must build a new strategic approach, one that targets new patterns of working andlearning. This is our mission over the next ten years.

A new corporate purpose for the future: “be Unique”
When formulating CCC 2030, we spent long discussions and a lot of soul-searching on two themes. The first concerned theexistential question—What is our organization’s purpose in the world? What value do we offer?
Our organization was originally founded for the purpose of enriching the world through products and services. Over theyears, we have enjoyed business success by doing exactly that. However, we now find ourselves in a time of
unprecedented change, the likes of which occur once in a hundred years. Our then statement of purpose—“enrich the world
through our products and services”—had served us well down the years and it remained dear to our hearts. Nonetheless,we concluded that a new statement of purpose would be necessary to achieve success in the future.
So we re-conceptualized our purpose, focusing on entrepreneurial drive—our starting point.
The new purpose is expressed as “be Unique.” This slogan conveys our desire to create unique experiences through our
products and services—to inspire and ignite everyone’s unique creative spark. This is the role we must play in ourcustomers’ lives, and it is this role that holds the key to our future success.

Reviewing what has brought us success so far and clarifying what will bring us successtomorrow: Designed with Empathy
The second theme for CCC 2030 was to reaffirm our strength. In other words, where does our strength lie?—What will drive
our future success? We felt that clarifying this matter would make our organization more surefooted for the road ahead.
We concluded that our strength lies in the way we design with empathy As a generalist-eclectic manufacturer, we had
cultivated prowess in marketing, design, product planning, and the like. We also have many kinds of interfaces withcustomers and a range of mechanisms to meet customers’ needs. Traditionally, we relied on these assets to drive our14

KOKUYO Group CSR Report 2021

business growth. However, with values and lifestyles diversifying, we increasingly work with customers to create new value,and such co-creative efforts have cultivated empathic bonds between us and the customer. Hence, from now on, we will
regard our strength as our ability to design with empathy with customers.
By leveraging this strength in our business activities, we can go forward with greater confidence and clarity and bring newvalue to the world.

Identifying material issues to entrench commitment to sustainable growthA crucial part of CCC 2030 is the need to adopt a more sustainable mindset with a long-term focus. We want to achieve a
successful balance between economic value (profit growth) and social value.
We will keep creating new value in an effort to solve the problems our customers face. To that end, we must protect thebottom line. However, we will eschew any kind of profit-making practice that severely harms society or the environment.
Such practices, no matter how lucrative they may be, would never contribute to our success as an organization in the longrun.
In an effort to drive new venture creation, we have started investing in a range of startups and joint ventures. Ourinvestment decisions in this area are guided by the principles of sustainable management. If we maintain this stance, thenour business collaborations will become a byword for the creation of sustainable business.
To communicate the direction of our sustainable management to stakeholders and to entrench commitment to sustainability
among employees throughout our corporate group, we undertook a materiality analysis, which revealed five material issues:
pitch ideas for new ways of working, promote diversity and inclusion, respond to the climate crisis, contribute toward a
circular economy, and contribute toward a society that coexists with nature. For each of these issues, we have shown the
SDGs they are linked with and have set targets for 2030. We will continue internal discussions and dialogue withstakeholders to further clarify medium-term goals and action plans.
We will work as one to realize our vision of becoming an ecosystem of diverse businesses that grow sustainably. Let meconclude by thanking all our stakeholders for their confidence in us. I look forward to continuing our journey together.

15

KOKUYO Group CSR Report 2021

KOKUYO's CSR
Charter
KOKUYO CSR

Corporate Proﬁle
KOKUYO Materiality

KOKUYO's Main
Business Domains
Environment

KOKUYO's Initiatives
and History
SocialInitiatives for Futureand Society

KOKUYO's Various
Initiatives

Introduction of KOKUYO s
Initiatives in 2020

Governance

Third-Party
Assessments

Content Index

Message from the
President

Concepts
Basic Concepts
The KOKUYO Group began when founder Zentaro Kuroda opened a small shop selling ledger covers made with Japanese
paper in 1905. The founder moved from his village to Osaka with the aspiration of making his business the pride of his
hometown Etchu (present-day Toyama Prefecture). Through the brand Kokuyo (国誉), which is the current company name
KOKUYO (コクヨ), his aspiration has been passed down to the KOKUYO Group and captured in its business.
In 2004, we enacted the KOKUYO Group CSR Charter based on our corporate philosophy to establish better relations withvarious stakeholders as a good corporate citizen (which was partially revised in 2012). Our basic policy for ensuring theongoing growth of society and the KOKUYO Group has been clarified in line with five key themes: our customers, regional
communities, environmental conservation, corporate activities, and respect for human rights.
*Related information: "KOKUYO Group CSR Charter"

System for the Promotion of CSR
The KOKUYO Group promotes CSR activities on a group-wide basis through linkages among CSR-related sections. The
CSR & Environmental Group formulates and reviews policies and helps to define issues and targets in order to strategicallypromote CSR. We also operate an environmental committee and a central health and safety committee, among other suchorgans tasked with dealing with important concerns. With special sections leading the way, our entire group pursues theseconcerns in a coordinated fashion. We will continue to strive to achieve sustained growth for society and the Group while
maintaining a state of harmony with stakeholders through CSR information disclosure and dialogue.

16

KOKUYO Group CSR Report 2021

KOKUYO's CSR Charter
While remaining profitable and honest in its business practices, KOKUYO conducts business that is necessary for society.
In addition to complying with laws and regulations, we seek to maintain continuity of our business by acquiring the trust of
all related stakeholders, investors, and, of course, our customers by fulfilling our social responsibilities as a corporate
citizen.

1. Without being satisfied with the present conditions, we continue to improve the safety and quality of our entire
product line and services.
2. Strive to continually innovate society through our business operations by developing new products andservices.

1. Strive to be a trusted ‘corporate citizen’ on both regional and national levels via proactive interaction andplanning with regional communities, while respecting regional culture and customs and encouraging theiradvancement.

1. Concentrate the wisdom of each of our employees, and align the actions of our entire company in order toassist in reaching solutions for the common environmental problems facing the world today.
2. By developing Eco Products, we strive to decrease the environmental burden over the life cycle of these
Products and to introduce new environmental engineering and green procurement techniques.
3. Contribute towards the advancement of a ‘low carbon society’ by proposing revolutionary work styles andenvironments, and decrease society's overall burden on the environment.

1. Conduct transparent, just, and free competition and business transactions while keeping sound and correct
relations with politicians and governmental bodies.
2. In order to become a trusted company, we strive for business partner relations that are consistently fair andbuilt upon a foundation of reciprocal cooperation, allowing for mutual growth.
3. Recognize our responsibility to increase our corporate value for stockholders, and maintain a corporate
management style that earns the trust of society through its transparency and virtue.

1. Respect the human rights of all individuals involved with or affected by all of our corporate activities. We
support work environments free from discrimination, and do not approve of child labor or forced labor
practices.
2. Strive to accept each and every employee's individual character and personal values, and become acompany where many different human resources can fully express their abilities and develop themselves.

17

KOKUYO Group CSR Report 2021

KOKUYO Group Code of Conduct
After expanding overseas, we wanted to set common rules for our businesses while taking into account local cultures,values, and laws. Accordingly, in August 2012, we released the KOKUYO Group Code of Conduct together with anaccompanying handbook. The code outlines common rules, while the handbook includes supplementary information on
country- and region-specific business practices, regulations, and so on.

Code of Conduct (Japan edition)
The KOKUYO Group Code of Conduct outlines basic rules for officers and employees in order to ensure that all
business practices comply with laws, regulations, and social norms.
1. Purpose
The KOKUYO Group Code of Conduct (“Code”) outlines basic rules for officers and employees in order toensure that all business practices comply with laws, regulations, and social norms.
2. Scope
The Code applies to all “officers and employees,” meaning officers and employees of KOKUYO and those ofcompanies falling under the categories provided for in the Group Governance Code—namely, Controlling
Company, Core Company A, Affiliate A, and Core Company B.
3. Definitions
As used herein, “KOKUYO Group” means KOKUYO Co., Ltd., and all companies falling under the categories
listed in Article 2.
As used herein, “laws” means all laws, ordinances, and regulations (including but not limited to those inJapan) that are germane to KOKUYO Group’s businesses, while “internal rules” means all rules, protocols,requirements, and guidelines that apply throughout KOKUYO Group or in one or more of the companies
therein.
As used herein, “officers” means members of a company’s board of directors and members of a company’s
audit/supervisory committee (or equivalent thereof), while “employees” means individuals a company employs
directly, including regular employees, senior employees, contract works, part-timers, and casual employees.
4. Content(1) Compliance with laws and internal rules and acting with integrity
We not only comply with laws and internal rules, but also act with high ethical standards and integrity.
(2) Respect for Human Rights and Personality
We must never discriminate based on race, ethnicity, religion, nationality, language, gender, disability, or
similar status. They must never commit sexual harassment, bullying, or any other form of workplaceharassment. They must never condone child labor or forced labor.
(3) Preservation of the global environment
We must never disregard environmental issues such as climate change and deforestation. They must
engage in an organization-wide effort to reduce or mitigate KOKUYO Group’s carbon footprint.
(4) Free competition and fair trading
We comply with laws and internal rules related to prohibition of monopolization, fair competition and fairtrading and will not engage in conduct that deviates from these standards(5) Provision of safe and reliable goods and services
We must continually devote ourselves to KOKUYO Group’s mission of providing safe, reliable goods andservices that win customers’ trust and leave them satisfied.
(6) Proper handling of company assets and protection of intellectual property
We properly manage, maintain, and utilize every tangible and intangible company asset. We respect the
intellectual property rights of others.
(7) Proper information management and financial reporting

18

KOKUYO Group CSR Report 2021

We honestly and properly create records of the company, as well as manage and report informationcollected and obtained in the course of business in accordance with proper procedures based on themateriality of such information. We carry out accounting and financial reporting in compliance with laws andinternal rules relevant to financial, accounting, and tax affair(8) Prohibition of acts involving conflicts of interest
We will not engage in any act that involves or may involve a conflict between personal and corporate
interests.
If there is a possible conflict of interest, we will report it to our superiors.
(9) Prohibition of insider trading
We will not engage in insider trading or any act that triggers insider trading laws or regulations inconnection with the trading in shares of the Kokuyo Group or any other company(10) Proper management of entertainment and gifts
We will not give or receive entertainment and gifts in deviation from normal business practices.
We will not illegally give entertainment or gifts to public servants or government officials.
(11) Handling of unreasonable external demands
We must refuse any unreasonable request from outside parties.
6. Dissemination
KOKUYO Group companies must help disseminate the Code among their officers and employees incollaboration with the organizational division responsible for managing the Code.
7. Penalties
Any officer or employee found to have violated the Code may be subject to disciplinary action in accordancewith laws and internal regulations.
8. Revision, revocation
The Code may be revised or revoked with the approval of KOKUYO Group’s HQ Management Board.
Supplementary provisions
The Code is in effect as of August 20, 2012.
Revision dates
October 1, 2015
June 1, 2020
June 26, 2020

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KOKUYO Group CSR Report 2021

Stakeholder relations
KOKUYO’s stakeholders
Committed to the goal of a sustainable world, we pursue an active CSR program to earn the trust of customers,
shareholders, business partners, communities, and all other stakeholders.

Examples of communication with stakeholders

Stakeholder

Dialogue opportunities

A system for utilizing feedback from
customers

Customer Support Center
Customers

Initiatives in 2020

Q&A webpage, inquiries webpage
Product information

Customer Support Center’s systemrevamped

Dealers’ Guide: A webpage that lets users
search for stores selling KOKYO products

Kaunet: Kau-Box opened, opening event
livestreamed on social media

Events, seminars

China: Participating in the booming livecommerce market
Employee satisfaction survey
TeleCross!!!: Building an employee network
First online version of employee welcome
event
Achieving a good work-life balance, Giving
employees flexibility in where and when
they work, Re-employment system for
employees who left their jobs due topersonal circumstances, and Handling reemployment of mandatory retirees
Play work: A new approach to work
Internal training course for understanding
and using AI

Employees

A program for awarding ideas for anempowered workplace

Labor-management meetings
Training programs

Creating a cyclical process of employee
growth and business growthInternal newsletters
Company events

20% Challenge: Internal moonlighting
KOKUYO Marketing University: A training
program for young employees
KOKUYO Marketing Graduate School: A
training program for middle-aged
employees
Employees’ Safety
Using videoconferencing for risk prediction
training
Construction conferences in 2020
Coronavirus taskforce, anti-infection
measures in offices
In a first for the distribution industry,

20

KOKUYO Group CSR Report 2021

Stakeholder

Dialogue opportunities

Initiatives in 2020
KOKUYO Logitem introduced
communication device Bonx Grip
KOKUYO Logitem Okayama Distribution
Center: 9,000 consecutive days without anaccident
ACW award livestreamed to eight offices—Online for audience participation

Business partners

On-site audits
Meetings, events

Furniture: Online conferences withproduction plants

Exhibitions

Stationery: On-site supplier audits
Spatial design: KOKUYO Construction
Companies Conference

Shareholders

IR

Information for shareholders and investors

Disclosures

Six KOKUYO delegates speak at Kobe
University“Opening a new page in Tokyo”: An
Olympics themed extracurricular event forjunior high schoolers
Simple face shields and plastic folders
supplied to healthcare workers free ofchargeKOKUYO Design Awards 2021: PostNormal
Field Cast notebooks delivered to 80
thousand Olympic volunteers
Communities

Support for recovery efforts

Campus Art Awards 2020: A painting
competition for junior high and high school
students

Contributions to local communities

The Job Study initiative

Contributions to society at large

Michinoku Future Fund: A scholarship forstudents left orphaned by the 2011 disaster
KOKUYO Kitakanto Sales becomes official
supplier of national sports festivals to beheld in Tochigi
China: Donation appeal launched oninternal social media
China: Second-hand computers donated todisadvantaged community
Mini science centers opened at schools
near KOKUYO Camlin’s plants
India: KOKUYO Riddhi donates food to
local villagers

21

KOKUYO Group CSR Report 2021

Stakeholder

Dialogue opportunities

Initiatives in 2020
Action against ocean plastic pollution

Environment

Showing the carbon footprint of our
products

Fighting climate change
Conserving and recycling resources
Protecting biodiversity

Japanese-made, locally produced
materials
Yui-no-Mori Project
ReEDEN Project

22

KOKUYO Group CSR Report 2021

KOKUYO's CSR
Charter
KOKUYO CSR

Corporate Proﬁle
KOKUYO Materiality

KOKUYO's Main
Business Domains
Environment

KOKUYO's Initiatives
and History
SocialInitiatives for Futureand Society

KOKUYO's Various
Initiatives

Introduction of KOKUYO s
Initiatives in 2020

Governance

Third-Party
Assessments

Content Index

Message from the
President

KOKUYO Materiality
To accelerate efforts to address sustainability issues, we used a materiality assessment to identify material issues (theissues that matter most to our business and stakeholders).

Materiality assessment process

First, we sought to identify potential environmental, social, or governance issues by referring to SDGs information and todata from MSCI Inc. and the Sustainability Accounting Standards Board (SASB). Through this process, we identified 34
potential material issues. Next, we rated each of these issues 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. The management
then reviewed whether the materiality designation was valid. Finally, we set goals/targets for the material issues.

23

KOKUYO Group CSR Report 2021

Primary research(survey)

Secondary/desk
research

Consumers〇－

Key clients〇－

Investors (MSCI, SASB)－〇

National and local governments(government growth strategy)－〇

Contribution of product, service,or CSR initiative to SDGs－－

Product development〇－

Perspective

Importance to stakeholders

Impact on the business

Management

Discussion

Main stakeholder feedback
SocialWorkstyle reform
As we head into the new normal, you should provide information about what new working patterns are possible,
what ideas you have, and what work environments are necessary to achieve these ideas. I like the attitude
expressed in your slogan: (loosely translated as) “We test it out so you don’t have to.”Work-life balance
Through your products, you should offer distinctive work-life balance solutions.
Diversity (including employment of people with disabilities)
As businesses have more employees from diverse backgrounds, it has become necessary to take a broad approachto the task of building an optimum office environment.
You should do more to hire people with disabilities. Your disabled employment program should be expanded to yourmanufacturing and sales workspaces across the country.

24

KOKUYO Group CSR Report 2021

Environmental
CO2 reduction
You are doing good work in forest conservation, so you should also try to reduce CO2 emissions in your daily
operations.
You should actively invest in the fight against climate change.
Waste reduction
In a world with growing mountains of waste, if you could develop best practices for this issue, there would be an
opportunity to package these practices as KOKUYO’s distinctive solutions.
A big issue today is the mountains of waste produced when offices are relocated or the layout changed. You shouldfind ways to reduce the waste through recycling schemes or highly versatile reuses.
Protect biodiversity
This issue is very relevant to your organization given its use of paper in products such as notebooks.

Governance
Disclosing information to and communicating with business partners
Your sales reps provide very useful information.
Information/communications and data security are critical to our business operations.

Materiality matrix

25

KOKUYO Group CSR Report 2021

Material issues and targets
Following internal discussions and dialogue with stakeholders, we define medium-term goals and established action plans.
Material issue2030 goal

Material issue 1
Ideas for new ways ofworking

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

Employees act on their initiative andsolve problems through teamwork

Material issue 2
Promoting diversity andinclusion

Build a diverse, innovative workplace that isinclusive of gender, disability, and nationality, ect

Workforce is diverse, individual
differences are respected, andemployees feel empowered
Offset CO2 emissions: Contribute toMaterial issue 3
Respond to the climate
crisisReduce CO2 emissions through energy efficiency

absorption of at least 6,000 tons of
CO2 a year

and renewable energy. Use forests to offset
Reduce CO2 emissions: Emissions

emissions

down by 26% from 2013 level in
2030

Material issue 4
Contribute toward a
circular economy

Promote human rights and resource conservationin supply chains to promote a circular economy

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 asociety 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 15
hectares a year

26

KOKUYO Group CSR Report 2021

KOKUYO's CSR
Charter
KOKUYO CSR

Corporate Proﬁle
KOKUYO Materiality

KOKUYO's Main
Business Domains

KOKUYO's Initiatives
and History

Environment

SocialInitiatives for Futureand Society

KOKUYO's Various
Initiatives

Introduction of KOKUYO s
Initiatives in 2020

Governance

Third-Party
Assessments

Content Index

Message from the
President

Environment

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

The Group’s Vision for the Environment
Building a sustainable society will require the creation of a recycling-oriented, low-carbon society that can coexist withnature. We have established the KOKUYO Group Vision for the Environment, which states our environmental philosophy
and outlines seven policies for putting the philosophy into practice: 1) fighting climate change, 2) conserving and recycling
resources, 3) promoting eco-products throughout the value chain, 4) protecting biodiversity, 5) complying withenvironmental law and preventing pollution, 6) disclosing and communicating environmental information, and 7) integrating
environmental management.

Environmental principles
KOKUYO was founded with the vision to enrich the world through our products and services. An enriched world is asustainable world. Such a world requires global action to fight climate change, conserve scarce resources, and protect
biodiversity. To play a leading role in this perennial worldwide challenge, we will bring together the best business brains todevelop sustainable solutions.

Environmental policies
Prevention of global
warming

KOKUYO is taking measures to significantly cut the amount ofgreenhouse gasses it emits in order to realize a low carbon output
society.

Resource saving &recycling

KOKUYO is taking measures to promote the idea of Reduce –Reuse – Recycle by efficiently using limited resources in order tofurther the development of a recycling-oriented society.

Procurement,
development and supplyof environmentallyfriendly products

KOKUYO is taking measures to promote the development of newenvironmental technologies and green procurement in order toreduce the environmental load of the entire product recycling
process.

Biodiversity

KOKUYO seeks to reduce its impact on the ecosystem and tomaintain a low impact on it by engaging in business activities thatgive consideration to biodiversity.

Legal compliance &preventing pollution

In addition to environmental laws and regulations, KOKUYO seeks
to observe the industry guidelines that have been accepted by thecompany and its own standards, as well as to prevent
environmental pollution.

27

KOKUYO Group CSR Report 2021

Environmental policies
Information disclosure &communication

Environmental
management

KOKUYO actively discloses environmental information, works oncommunication with its customers and all external entities, and isfully engaged in environmental preservation activities.
AII KOKUYO employees work together and seek to develop new
ecological business models, and the company is taking measures
to continuously improve its environmental load and to develop thebusiness.

The above environmental vision was reworded to reflect our re-conceptualized purpose, “be Unique,” and our founding
vision to “enrich the world through our products and services.” We are updating our environmental vision to incorporate our2030 targets for five priority challenges that we identified in a materiality assessment.
*Related information: Materiality assessment process

Environmental targets for 2030
Our materiality assessment identified three critical challenges: respond to the climate crisis, contribute toward a circular
economy, and contribute toward a society that coexists with nature. There are two kinds of actions to meet thesechallenges: CSR actions and business actions. In 2020, we set targets measure our performance in CSR actions. We are
now considering targets for business actions.
Critical challenges

Respond to theclimate crisis

Contribute toward a
circular economy

2030 target

Reduce CO2 emissions

Reduce CO2 emissions: Emissions down by 26% from 2013 level*

through energy efficiency
and renewable energy.
Use forests to offset
emissions.

Offset CO2 emissions: Forests absorbing at least 6,000 tons of CO2 a

Promote human rights
and resource
conservation in supply
chains to promote a
circular economy

Protect biodiversity andContribute toward a
reduce use of hazardous
society that coexists
chemicals to minimize
with natureenvironmental impacts

year

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

Procurement guidelines applied throughout corporate group
Promote timber legality compliance
Forests: Forests thinned at 150 hectares a year
Reedbeds: Reeds trimmed at 15 hectares a year

*This target applies to the following companies: KOKUYO, KOKUYO Product Shiga, KOKUYO MVP, KOKUYO Logitem, KOKUYO Supply
Logistics, KOKUYO Marketing, Kaunet, Actus, KOKUYO Finance, KOKUYO & Partners, LmD International

28

KOKUYO Group CSR Report 2021

This is how we performed in 2020

CO2 emissions in 2013 2030 target 2020 result

C02 reduction target
Emissions down by 26% from 2013 level by
2030

30,683t-CO2

22,705tCO2

Change from 2013
level

22,334tCO2

Down 27.2%

Use forests to offset CO2 emissions
Forests thinned at 150 hectares a year and absorbing at least 6,000 tonsof CO2 a year.

Hectares thinned: 111.9
Tons of CO2 absorbed: 5,708

Three-year environmental strategy
2020 marked the final year of the previous three-year plan (2018–2020). We are preparing targets for the next three-year
period.
Environmental
policyAction2018 result

2019 result

2020 result

2020 target

Met/missed

Reduce CO2 emissions

13.0% down
(Japan)20.1% down
(Japan)32.5% down
(Japan)30% down(Japan)Met

13.8% down
(intensity)

16.1% down
(intensity)

21.1% down
(intensity)

10% down(intensity)

Met

95.5％

94.7％

94.7％

100％

Missed(from 1990 level)
Fight climatechangeReduce energy
consumption (from 2010
level)* 1% average annual rate of
reduction in intensity

Reduce, reuse,recycleRaise recycling rate of total
waste generated(includes construction waste
generated by prime
contractor)

Coverage of three-year targets:
The targets apply to the following companies: KOKUYO, KOKUYO Product Shiga, KOKUYO MVP, KOKUYO Logitem,
KOKUYO Supply Logistics, KOKUYO Marketing, Kaunet, Actus, KOKUYO Finance, KOKUYO & Partners, LmD
International, KOKUYO K Heart, Heartland* Actus and Heartland were not part of KOKUYO’s corporate group during the reference years. Accordingly, their performance in the targets ismeasured against their results for 2018.

Environmental Management System
Our Environmental Management System (EMS) consists of an integrated accreditation system for planning, R&D,
production, marketing, sales, services, storage, and shipment. Since 2004, the system covers all major subsidiaries inJapan.
While keeping the core elements of the EMS consistent across the group, we differentiate according to the scale of theenvironmental impact. Specifically, operating companies and plants with a relatively large environmental impact get case-

29

KOKUYO Group CSR Report 2021

specific treatment, while those with less impact get standard treatment.
We also try to give the companies sufficient leeway to manage their environmental impacts in a manner that suits the natureof their businesses. For example, we allow the companies to set environmental targets in line with their business strategies.
Environment-related documents are managed under a system called MELON. In a July 2013 upgrade, MELON’s coverage
was expanded and the system was made more user-friendly, efficient, and accurate. We subsequently migrated the data to
a new system (the 2015 system). The migration testing was completed successfully in December 2016.

Environmental Education
To educate employees about environmental issues, inform them about theenvironmental targets, and train them in accident/emergency responses andmanagement protocols, the ISO Promotion Office organizes briefings onenvironmental legislation and provides training to members of the internal audit
team. Additionally, individual divisions and business units provide their own
environment-related training programs. In 2020, most in-person training eventswere cancelled because of the pandemic. We are exploring alternative options fortraining.

Training employees to respond to spills(KOKUYO MVP)30

KOKUYO Group CSR Report 2021

Number of attendees
Education/training category
2018

2019

2020

General environmental education

2,152

1,891

2,708

Briefings on environmental targets andlegislation

233

367

162

Accident/emergency response drills

169

232

211

Training for internal audit team

21

56

96

Other training

322

192

7

Total

2,897

2,738

3,184

First-, second-, and third-party auditsFirst-, second-, and third-party audits are performed to ensure conformity across our corporate group. In first-party audits,
the auditee (a group company) performs the audit on itself. In second-party audits, our ISO Promotion Office performs theaudit on the auditee. In third-party audits, an independent body performs the audit in compliance with the requirements of
ISO 14001. The audits focus most of all on legal compliance. In 2020, first-party audits were performed from July 1 to 31,
second-party audits were performed from August 31 to September 14, and third-party audits were performed from
November 30 to December 4. The first- and second-party audits identified 48 issues, many of which concerned compliance.
For example, 12 concerned waste and seven concerned hazardous materials. The third-party audit found no issues assuch, but it did highlight some “opportunities for improvement.” In light of the feedback, we recognize the need to improveeducation on legal matters.
As was the case in the previous year, the third-party audit identified as an “excellent aspect” the fact that our ReEDEN
Project and Yui-no-Mori Project have earned plaudits for promoting biodiversity. The third-party audit in 2020 was asurveillance audit.
Year2018 2019 2020
Year

2018
2019
2020
(recertification (surveillance (surveillance
audit)
audit)
audit)

Sites audited

75

118

74

First-party audit

60

61

59

Sites audited

29

17

20

Second-party audit

15

16

15

1

1

1

Extraordinary audit

－

41

－

Excellent
aspectIssues identified

28

83

48

Good aspect

8

5

2

Minor nonconformity

8

25

13

Minor
nonconformity

1

0

0

Corrective action

20

58

35

Opportunityfor
improvement

21

21

26

31

KOKUYO Group CSR Report 2021

Internal audit at Shibayama plant

Internal audit at a workstation in KOKUYO’s
Osaka office

Third-party audit at KOKUYO Logitem’s
distribution center in Shiga

Third-party audit at KOKUYO Product Shiga

Third-party audit at KOKUYO’s Shinagawa

Third-party audit at KOKUYO Supply

officeLogistics’ distribution center in Ibaraki

32

KOKUYO Group CSR Report 2021

Third-party certification
Our environmental reporting was independently reviewed and certified by Bureau Veritas Japan for the purpose of receiving
independent feedback on the accuracy, transparency, consistency, validity, and completeness of the reporting.

Process of third-party review
Bureau Veritas Japan reviewed our reporting of theenvironmental impacts of all 31 organizations1 in thecorporate group (which includes Iwami Paper Industry
since 2018) as well as our scope 3 emissions data. It also
visited workplaces to see how data was being measured
and managed. Three Japanese workplaces were visited:
KOKUYO Head Office, Iwami Paper Industry (Ato plant),
and KOKUYO Supply Logistics (Kyushu distribution
center). One overseas workplace was visited: KOKUYO
Vietnam. The review identified eight excellent aspects and
11 opportunities for improvement. It also identified 42
issues requiring corrective action and 13 opaque aspects
requiring better transparency. During the review period, we
rectified the 42 issues and clarified the 13 opaque aspects.
While recognizing the progress we have made instandardizing rules for aggregating data, the reviewer
highlighted some instances where data was omitted orwhere the basis for calculation was ambiguous.
In light of the issues raised, we will work harder to improve
the accuracy and precision of disclosures both internallyand throughout our supply chains.
Year

2018

2019

2020

Excellent aspects

9

12

8

Opportunity for improvement

6

11

11

Issue requiring corrective
action32

38

42

Aspect requiring bettertransparency

30

17

13

Environmental performance data
On-site third-party check at
Ato plant

Environmental performance data
On-site third-party check at
KOKUYO Head OfficeEnvironmental performance data
On-site check at
KOKUYO Supply Logistics’ Kyushu
distribution center*1 The review covered data reporting from the following organizations:33

KOKUYO Group CSR Report 2021

Consolidated subsidiaries

Affiliates

KOKUYO Co., Ltd.

Japan

Overseas

KOKUYO K Heart Co., Ltd., Heartland Co.,
Ltd., IWAMI Paper Industry Co., Ltd.,
Kaunet Co., Ltd., KOKUYO Marketing Co., Ltd., KOKUYOKOKUYO Hokkaido Sales Co., Ltd., KOKUYOSupply Logistics Co., Ltd., KOKUYO Logitem Co., Ltd.,
Tohoku Sales Co., Ltd., KOKUYO Kitakanto
KOKUYO Product Shiga Co., Ltd., KOKUYO MVP Co., Ltd., Sales Co., Ltd., KOKUYO Tokai Sales Co.,
LmD International Co., Ltd., Actus Co., Ltd., KOKUYOLtd., KOKUYO Hokuriku-Niigata Sales Co.,
Finance Co., Ltd, KOKUYO & Partners Co., Ltd.
Ltd. , KOKUYO Sanyo-Shikoku Sales Co., Ltd.

KOKUYO Vietnam Co., Ltd., KOKUYO Malaysia Sdn. Bhd., KOKUYO-IK (Thailand) Co., Ltd.
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., KOKUYOInternational (Malaysia) Sdn. Bhd., KOKUYO Vietnam
Trading Co., Ltd., KOKUYO CAMLIN Ltd.

34

KOKUYO Group CSR Report 2021

KOKUYO's CSR
Charter
KOKUYO CSR

Corporate Proﬁle
KOKUYO Materiality

KOKUYO's Main
Business Domains
Environment

KOKUYO's Initiatives
and History
SocialInitiatives for Futureand Society

KOKUYO's Various
Initiatives

Introduction of KOKUYO s
Initiatives in 2020

Governance

Third-Party
Assessments

Content Index

Message from the
President

Environment

The KOKUYO Group strengthens activities to ease global warming (measures for the reduction and absorption of CO2
emissions) with a view to achieve a low carbon society.

Summary for 2020
In 2020, a total of 22,334 tons of CO2 was emitted by our consolidated subsidiaries in Japan1 and by our disability-friendly
subsidiaries, KOKUYO K Heart and Heartland. This total represents a reduction of 4,085 tons (15.5%) from the previous
year, which exceeds our carbon reduction target. The change in emission coefficients2 accounts for 715 tons of the
reduction. According to our estimates, the actual reduction was 3,370 tons and the breakdown was as follows: We cut 428
tons by improving operations, 179 tons by improving facilities and equipment, and 2,763 tons by consolidating
manufacturing operations. The reductions for offices, production sites, and distribution channels are as follows.

Offices
Our offices reduced their emissions by 859 tons from the previous year’s level (765 tons if the exhaust coefficient is
excluded).
The breakdown was as follows: 683 tons of emissions were cut as a result of office responses to the coronavirus pandemic
such as allowing remote work and more flexible working hours. Besides this, 82 tons were cut by using less air conditioning,by existing efforts to promote more efficient working patterns (such as instituting a no-overtime day and encouraging
workers to leave work on time), and by installing energy-efficient LED lighting.

Production sites
Our production sites reduced their emissions by 2,570 tons from the previous year’s level (2,121 tons if the exhaustcoefficient is excluded).
The breakdown was as follows: 1,750 tons of emissions were cut because of pandemic-related production stoppages.
Besides this, 320 tons were cut by operational improvements. These included cutting changeover times, tightening
compliance with rules for machinery and equipment, improving inspections, making production schedules more precise,and running energy audits to ensure energy efficiency. Additionally, 51 tons were cut by installing inverters and energyefficient LED lighting.

Distribution channels
Our distribution channels reduced their emissions by 656 tons from the previous year’s level (484 tons if the exhaustcoefficient is excluded).
The breakdown was as follows: 330 tons of emissions were cut because of shipment holdups caused by the pandemic, 31
tons were cut by ongoing efforts to save energy (operational improvements, lighting adjustments at distribution centers),
and 123 tons were cut by installing energy-efficient LED lighting.
*1 The companies are as follows: KOKUYO, KOKUYO Product Shiga, KOKUYO MVP, KOKUYO Logitem, KOKUYO Supply Logistics, KOKUYO
Marketing, Kaunet, Actus, KOKUYO Finance, KOKUYO & Partners, LmD International.

35

KOKUYO Group CSR Report 2021

*2
As
to

Solar panels installed at the new wing of ourOsaka office

Solar panels installed at Shiga Factory

Hybrid streetlights installed at our
Metropolitan Area Integrated Distribution
Center (IDC)
CO2 emission coefficients for electricity, we adopt the coefficients based on Japan’s Act on Promotion of Global Warming Countermeasures(base emission coefficients for each electricity company based on actual performance for 2018 and 2019).

Total CO2 Emissions by KOKUYO Group
Total emissions for all 31 organizations1 in the corporate group (which includes
Iwami Paper Industry since 2018) amounted to 32,299 tons,2 a reduction of 7,525
tons from the 2019 level. Around 2,500 tons of the reduction was attributable to theenergy provider reducing its emissions coefficients. The remaining 5,000 tons was
attributable to our ongoing efforts to cut emissions as well as to reduced worker
attendance amid the pandemic.
*1 CSR Data Snapshots*2 As to CO2 emission coefficients for electricity in Japan, we adopt the coefficients based on the
Act on Promotion of Global Warming Countermeasures (base emission coefficients for each

Solar panels installed at KOKUYO
Camlin’s Patalganga Factory

electricity company based on actual performance for 2018 and 2019). As to CO2 emission
coefficients for overseas electricity, we adopt the CO2 Emissions from Fuel Combustion 2019 edition by the International Energy Agency.
The difference due to change in coefficients is the difference with the emissions calculated based on the average of all electricity sources for2000 (0.378 kg-CO2/kWh).

Trend of CO2 Emissions for Entire KOKUYO Group

Energy consumption (energy intensity per sales unit)

Improving the Accuracy of Scope 3 Data
Thanks in part to the work of the Carbon Disclosure Project (CDP), there is growing interest in carbon reporting. Businesses
around the world are increasingly expected to disclose information on their scope 3 emissions. Scope 3 emissions areindirect emissions throughout the value chain, including in production, shipment, consumption, and disposal.
Before 2014, we were already disclosing some scope 3 emissions (such as emissions produced during shipment). Since
2014, we have disclosed scope 3 emissions in accordance with the Ministry of the Environment’s Basic Guidelines on

36

KOKUYO Group CSR Report 2021

Calculating Volumes of Greenhouse Gas (GHG) Emissions.
In 2020, our value chain produced a total of 543,478 tons of GHG emissions. Scope 3 emissions accounted forapproximately 94% of this total. As much as 83% of the scope 3 emissions were from purchased goods and services(Category 1).
The reliability of our environmental data was confirmed in an independent assessment conducted Bureau Veritas Japan.
Emission by Scope

Breakdown of scope 3 emissions*CSR Data Snapshots (Global Warming Preventive Measures)

37

KOKUYO Group CSR Report 2021

KOKUYO's CSR
Charter
KOKUYO CSR

Corporate Proﬁle
KOKUYO Materiality

KOKUYO's Main
Business Domains
Environment

KOKUYO's Initiatives
and History
SocialInitiatives for Futureand Society

KOKUYO's Various
Initiatives

Introduction of KOKUYO s
Initiatives in 2020

Governance

Third-Party
Assessments

Content Index

Message from the
President

Environment

To promote the growth of a recycling-oriented society, we endeavor to reduce, reuse, and recycle by effectively utilizing
limited resources.

Summary for 2020
The volume of waste materials generated by the group’s 31 business offices1 in 2020 was 19,785 tons (previous year:
23,446 tons), and the recycling rate was 96.6% (previous year: 96.4%). We generated 2,973 tons of waste materials on
construction sites (previous year: 4,150 tons) with a recycling rate of 82.0% (previous year: 85.2%). The responsibilities ofthe prime contractor with respect to the disposition of waste materials generated on construction sites have been clarified,
and the obligations of the waste-generating company have been tightened. Efforts were made to contain waste materials inpart through a review of the methods by which parts subject to processing at construction sites are ordered. As wastematerials generated on construction sites are not homogenous, there are many cases in which recycling is difficult due tothe intermingling of various types of waste materials in a given batch. Nevertheless, we will continue to properly dispose ofwaste materials in conjunction with the implementation of controls on their generation and aim to achieve our medium- andlong-term target of 100% for the rate at which waste materials are recycled.
*1 CSR Data Snapshots

Office waste
In 2020, our offices produced 790 tons of waste (compared to 694 tons in 2019) and recycled 97.3% of waste (compared to
95.9% in 2019). Although there is a limit to what an office can do, our office staff are doing their bit by separating waste andgoing paperless.

Factory waste
In 2020, our factories produced 9,930 tons of waste (compared to 10,999 tons in 2019) and recycled 96.7% of waste(compared to 95.3% in 2019).
Since 2009, our Japanese production sites produce zero emissions when disposing of waste. Overall, they recycled 99.8%
of waste (compared to 99.4% in 2019), because plasterboard at Mie plant is now reused (material recycling) instead ofbeing burned for energy (thermal recycling).
In 2020, our overseas production sites recycled 87.4% of waste (compared to 81.4% in 2019). We encourage each of thesesites to reduce and recycle, while taking into account local recycling standards.

Waste in distribution channels
In 2020, our distribution channels produced 9,066 tons of waste (compared to 11,753 tons in 2019) and recycled 96.4% of
waste (compared to 97.3% in 2019).
Cardboard and wooden pallets used in packaging are repaired and reused.
We will continue our active efforts to use resources effectively.

38

KOKUYO Group CSR Report 2021

KOKUYO products: Reuse, recycle
For certain cases, we encourage customers to return used products so that they
can be reused or recycled.
In 2020, KOKUYO Logitem collected around 1,988 tons of used office furniture(desks, chairs, and so on). Around 230 tons of the collected furniture was salvaged
for reuse. The remainder was dismantled and sorted for recycling.
*CSR Data Snapshots (Resource Saving and Recycling)

A desk being dismantled and sorted

39

KOKUYO Group CSR Report 2021

KOKUYO's CSR
Charter
KOKUYO CSR

Corporate Proﬁle
KOKUYO Materiality

KOKUYO's Main
Business Domains
Environment

KOKUYO's Initiatives
and History
SocialInitiatives for Futureand Society

KOKUYO's Various
Initiatives

Introduction of KOKUYO s
Initiatives in 2020

Governance

Third-Party
Assessments

Content Index

Message from the
President

Environment

We are striving to prevent environmental pollution by complying with statutes and regulations relating to the environment aswell as industry guidelines to which we have subscribed and our own standards.

Summary for 2020
Twenty-eight environmental laws and regulations are currently applicable to the KOKUYO Group within Japan. In Juneevery year, we evaluate the status of our compliance with these laws and regulations. The 2020 evaluation revealed thatsome of timber products might be noncompliant with the Act on Promoting Green Procurement, as a result of discrepancies
in interpreting the requirements in that law. We regard this result as indicative of the tightening of the criteria for timber
legality. No other products were found to be in violation of the requirements.

Compliance with Air Pollution Control Act: Dealing with asbestos
The revised Air Pollution Control Act, in effect from April 2021, has toughened theregulations on preventing the release of asbestos fibers. Accordingly, we makesure that all managers responsible for safety and engineering in buildings areaware of and comply with the regulations. At the construction project conferences,
the above managers are informed about the hazards of asbestos and the time
periods when asbestos was used in buildings. Attendees at these conferences arealso instructed to check for asbestos before starting any construction or repair workand to report back the results. Mindful that such checks are likely to uncover many
more cases of asbestos in older premises, we will use construction project
conferences to prevent asbestos dispersal and exposure.

Because of the coronavirus, this seminar
was held online

Seminar material

Handling chemical substances
We make all efforts to ensure proper management and handling of chemical substances.
In June 2016, Japan tightened the legislation on chemical substances, introducing mandatory chemical risk assessments.
We comply with the requirements and take steps to ensure chemical safety in the workplace. At Shibayama Plant, paints
and other hazardous chemical products come with a safety data sheet (SDS) to inform the people who will handle thechemical about the chemical’s hazards and the relevant requirements. As a further safety precaution, the chemical products
have labels with a color coded sections that visually communicate the hazards (blue, red, and yellow). Other workplaces
use similar measures.

40

KOKUYO Group CSR Report 2021

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 tohandle hazardous substances (substances that could harm the environment or health) safely and to communicate thehazard 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 theinherent properties of a chemical substance that make it potentially hazardous, to a more scientific risk-based approach,which focuses instead on the circumstances in which these potential hazards may cause harm. We, too, have shifted
toward risk-based assessments over the past several years. In 2014, we listed up the hazards in the chemical substances
we use. Referring to this list, we started examining the risks of the substances in 2015 on a priority basis. In 2017, wereleased our findings on the hazards and exposure risks in a report titled Guidelines for Managing Chemical Substances
Included in Product (Stationery Edition). In 2018, we organized in-house training courses on chemical substancemanagement to tighten compliance with chemical management regulations. In 2020, we started preparations to update theguidelines to incorporate more risk information ahead of a revision to Japan’s chemical management regulations. We willcontinue to fulfill our responsibility to comply with chemical substance regulations and communicate chemical information.

Chemicals managed and handled securely(Head Office)Color coded sections on label communicate
hazards (Shibayama Plant)

41

Scanning for heavy metals using X-ray
fluorescence

KOKUYO Group CSR Report 2021

KOKUYO's CSR
Charter
KOKUYO CSR

Corporate Proﬁle
KOKUYO Materiality

KOKUYO's Main
Business Domains
Environment

KOKUYO's Initiatives
and History
SocialInitiatives for Futureand Society

KOKUYO's Various
Initiatives

Introduction of KOKUYO s
Initiatives in 2020

Governance

Third-Party
Assessments

Content Index

Message from the
President

Environment

The KOKUYO Group is working on new environmental technologies and green procurement in order to reduce theenvironmental load over the entire life cycle of its products.

Continuing to Ensure That No Eco-Batsu Mark Tarnishes Our Catalog
The KOKUYO Group started using the Eco-Batsu (“no good”) mark for products in the 2008 General Catalog. This mark isused for group products that are not sufficiently environmentally friendly at any stage of their life cycle, including
manufacturing, distribution, usage, and disposal. We tasked ourselves with removing the Eco-Batsu mark from all of our
products in three years, and this goal was reached in the 2011 General Catalog. We continue to apply the due-diligencesystem to products in the 2021 catalog.

Action against ocean plastic pollution
The All-Paper seriesThis is a series of filing products made fully from paper. When it was launched in March 2004, the series received praise forbeing able to be disposed without having to incur effort to separate into paper, plastic, metal and other materials. With therecent global rise in the problem of ocean plastics, the series is again gaining recognition from the perspective of moving
away from plastic. In 2020, we added some more products to the series. One of the new products is a folder with a window
which lets you see the contents. Another is a large-capacity flat file.
The All-Paper series is involved in the Plastics Smart Campaign established by Japan’s Ministry of the Environment toward
solving the global problem of ocean plastics that supports the advancement of initiatives through the partnership andcooperation of a wide range of entities such as individuals, local governments, NGOs, companies, and research agencies.
For example, we are a member of the Japan Clean Ocean Material Alliance (CLOMA), and such membership helps us stayabreast of the latest technological advances in addressing the problem of ocean plastics.
http://plastics-smart.env.go.jp/case/?id=1060

Kaunet’s initiatives
One of Kaunet’s eco-initiatives is to offer simplified packaging for its deliveries. Moreover, for this simplified packaging, it isswitching to biomass plastic.
*When ordering online, customers are presented with three packaging options: simplified, cardboard, and no-preference.

42

KOKUYO Group CSR Report 2021

Large-capacity flat file (all paper)

Paper folder with window (all paper)

Biomass plastic packaging

Showing the carbon footprint of our products
In 2010, we started monitoring and publicly disclosing the carbon footprint of products from the time they are produced tothe time they are disposed of or recycled.
Website: Showing the carbon footprint of our products

Using Japanese-made, locally produced materials
As much as 67% of Japan’s landmass is covered by forests. Forests help prevent sediment runoff, contribute to water
retention, and absorb CO2. They also provide a renewable resource. However, in much of the country’s man-made forests,
which account for 40% of all the forests, these roles are not fully performed due to insufficient forest thinning.
In 1998, we started developing 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.
In response to the demand for locally sourced materials, we developed a reception desk that uses such materials.
Designed by Graf: Decorative Mode Number 3, the product has a crisp, modern feel. It also embodies universal designprinciples: the table edge has a groove for securing a white cane and a grip for wheelchair users.

Protocol Counter
In response to the demand for locally sourced materials, we developed a reception desk that uses such materials.
Designed by Graf: Decorative Mode Number 3, the product has a crisp, modern feel. It also embodies universal designprinciples: the table edge has a groove for securing a white cane and a grip for wheelchair users.

Protocol Counter, winner of the Japan Wood
Design Award 2017

BS + Desk System

UU chair

43

KOKUYO Group CSR Report 2021

EF Counter, featuring modesty panels made from locally sourced timber
EF Counter is a series of modular counters that can be rearranged to suit changes in the organization or changes in desireduse. With their universal design, the counters are friendly to the elderly and to wheelchair users. While part of the structure
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. As with Protocol
Counter, the table edge has a groove for securing a white cane and a grip for wheelchair users.

An example of EF Counter (with modesty panel made from local timber) in action (newly built municipal officeof Echizen, Fukui Prefecture)

In October 2020, the rebuilding of Echizen’s municipal office was completed. For the office’s reception counter, we
pitched EF Counter, offering to fit modesty panels made from Japanese cedar in Echizen. The client wanted awooden counter that had the modularity to enable flexible rearrangement and that was made from locally sourced
materials. We offered to use the locally sourced wood only for the modesty panels—the part visitors see—and theclient was happy with the cost. The new office makes extensive use of locally sourced resources (the entrance
hall, for example, features Echizen ware tiling), which lends the premises a warm, inviting atmosphere. We willcontinue to promote the use of timber materials in public buildings by offering products that use locally sourced
products, combine sustainability with functionality, and are easy to use.

44

KOKUYO Group CSR Report 2021

KOKUYO's CSR
Charter
KOKUYO CSR

Corporate Proﬁle
KOKUYO Materiality

KOKUYO's Main
Business Domains
Environment

KOKUYO's Initiatives
and History
SocialInitiatives for Futureand Society

KOKUYO's Various
Initiatives

Introduction of KOKUYO s
Initiatives in 2020

Governance

Third-Party
Assessments

Content Index

Message from the
President

Environment

In all our business activities, we are mindful of biodiversity and strive to preserve and mitigate our impact on ecosystems.
We take action to preserve the forests around Shimanto River in Kochi Prefecture and to preserve Lake Biwa in Shiga
Prefecture.

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

Results of due-diligence review of timber compliance (in accordance with Timber Legality
Certification Due Diligence System Manual —Furniture Edition)
In 2020, our due-diligence review of timber compliance revealed that two varieties of our reception chairs use timber whose
legality is questionable. On September 1, 2020, in accordance with the manual, we derecognized the chairs as products
complying with the Act on Promoting Green Procurement (full title: Act on Promotion of Procurement of Eco-Friendly Goods
and Services by the State and Other Entities). We will continue performing rigorous due diligence while finding ways tofurther enhance the manual’s effectiveness.
You can view the manual by following the link below.
Timber Legality Certification Due Diligence System Manual (Furniture Edition Ver. 1.1)

45

KOKUYO Group CSR Report 2021

Certified as a procurer of legal and sustainable timber
After the Act on Promoting Green Procurement was strengthened, were certified asa “procurer of legal and sustainable timber” by the Japan Office Institutional
Furniture Association (JOIFA). In line with the new legal requirements, we strive toensure that the timber we use is legal and sustainable by providing a paper trail toshow how the timber is procured and used and by appointing the right people tomanage this process.

FSC®-approved products
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® hasapproved 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 aforest 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® License code: C004748)

Printer paper (PPC Color Paper)

Reed paper

FUBI

How we have used forest resources
In 2020, we used around 6,500 tons of wood in furniture products, equivalent to 9% of our total raw materials (excluding
packaging materials). Of this wood, 24% consisted of rough-cut lumber that was made into solid wood or engineered wood(including plywood). The remaining 76% consisted of forest residues (byproduct from thinning or clearing) or engineeredwood (including medium-density fiberboard and particle board) made from such. Each year, we report such data to JOIFA,
the body that certifies us as a “procurer of legal and sustainable timber,” in compliance with the Act on Promoting Green
Procurement. As per JOIFA’s reporting guidelines, we try to identify the wood species among the timber we use.

46

KOKUYO Group CSR Report 2021

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, and country 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
the products sustainably.

Wood species

Condition

Volume used (m3)Country or region of origin

Ash

Wood strands,
veneers

8

USA

Ayous

Veneers1

Italy, Cameroon

White oak

Board

15

Canada, USA

Kapur

Plywood

27

Malaysia, Indonesia

Engineered wood

5

Japan

2

Russia140

Germany, Croatia, France

Poplar136

USA, Canada

Maple

1

USA

Plywood960

Indonesia, Malaysia

Rubberwood

Engineered wood

87

Vietnam, Thailand, Malaysia

Palaquium

Plywood

20

Malaysia

Engineered wood

3

New Zealand

Japanese cedar
Oak
Beech

Lauan

Monterey pine

Solid wood,
plywood

Total

1,294

* 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.

47

KOKUYO Group CSR Report 2021

Yui-no-Mori ProjectIn 2006, we launched a project to conserve a public forest in the Taisho district of
Shimanto, Kochi Prefecture, which we named Yui-no-Mori (“linkage forest”). In thisproject, we thin the forest and make effective use of the resulting timber. Our
purpose is to lead the way in reviving manmade forests and restoring the link
between the natural environment and local livelihoods. In 2007, the project earned
FSC® certification. Today, Yui-no-Mori has a surface area of 5,425 ha, and acumulative area of 1,900 ha has been thinned. Kochi Prefecture awarded us the“CO2 absorption certificate” in 2007. In 2019, the forest absorbed 5,708 tons of
CO2 in that year. The cumulative total for April 2006 to March 2020 stands at
Accepting the grand prize for Yui-no-Moriat the 18th philanthropy awards
62,022 tons. In 2020, the project earned two more accolades: a “sustainability
action” commendation from the Ecological Life and Culture Organization (in October) and the “philanthropy grand prize”
from the Japan Philanthropic Association (in December). That year marked the fourth consecutive year in which the project
earned recognition. In 2017, it won the Japan Wood Design Award; in 2018, it won a “green wave” prize at the Biodiversity
Action Awards; in 2019, it won a commendation at the Low Carbon Challenge Cup and a “minister’s prize” in the corporate
category of the Ministry of the Environment’s Environment Good Life Awards.
* Related information: Awards and Accolades

Kochi Prefecture’s recognition of our forest offsets
On August 20, 2020, we Kochi Prefecture awarded KOKUYO and Kaunet a CO2 absorption certificate in recognition of thefact that we offset a total of 5,708 tons of CO2 (KOKUYO offset 5,162 tons and Kaunet offset 546 tons). The award
ceremony was held at the prefectural office. Presenting the award, Tatsuya Kawamura (who heads the prefecture’s
department for forestry and the environment) thanked the two companies for contributing over the years to Kochi’s efforts topreserve its environment, manage its forests, promote local industry, and support its PR.
The 5,708-ton offset represented 18% of the group’s total CO2 emissions in 2020 (32,299 tons). As well as preserving
forests, this effort proves valuable for mitigating climate change.

FSC® certification
Yui-no-Mori has enjoyed FSC® certification since 2007.
Following a regular audit performed on 29 and 30 September, 2020, the project was recertified.

Presentation of CO2 absorption certificates

The CO2 absorption certificates

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 termin partnership with Shimanto Forest Union, Shimanto High School, officials of Kochi Prefecture and Shimanto. On August19, 2020, we measured the water quality of Shimanto River. On November 21, we conducted a vegetation survey. We
conduct regular vegetation surveys in two locations.
*Related information: Latest vegetation survey report from the students of Shimanto High School

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KOKUYO Group CSR Report 2021

Using the byproducts of thinning
Since 2000, we have used the byproduct of thinning work to make furniture products in partnership with Shimanto Forest
Union. In 2007, Kaunet started marketing furniture under the Yui-no-Mori brand. As of 2020, the distributor offers 12 Yui-noMori furniture products. To help spread the word about Yui-no-Mori, Kaunet launched a scheme in 2008 whereby customers
can use their loyalty points to fund the thinning work. In 2020, there were around 120 applications for the scheme. Since
February 2011, Kaunet has donated 1% of the proceeds from some Yui-no-Mori products to an afforestation campaign(Midori no bokin; “green appeal”) organized by the National Land Afforestation Promotion Organization.

The survey team measuring the water quality

Participants in the vegetation survey

Kaunet’s Yui-no-Mori products

Discovering the reedbeds of Lake Biwa: ReEDEN
The reeds of Lake Biwa play an essential role. They provide an aquatic habitat, support biodiversity, and absorb CO2. In thepast, the reeds served as material for roofing and sudare screens, but with the decline of such traditional industries, thereedbeds are no longer maintained so well. The lake once had 260 hectares of reedbeds, but only half remains. In 1992,
Shiga Prefecture passed an ordinance to address the problem by conserving, cultivating, and using the reeds. Believingthat 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.

Building a network for conserving Lake Biwa’s reedbeds
Winter reed cutting is essential for reed cultivation. At Lake Biwa, this task is performed by a network of volunteers called
the Network for protecting Lake Biwa through reed management. Formed in 2009 on the premise that it takes more than
one organization to protect Lake Biwa, the network aims to bring on board a variety of local organizations. To that end,
members visit business premises and share the message about Lake Biwa as a way to persuade the organization to takean interest in local environment. Consisting initially of several companies that shared the same vision, the network now
encompasses 131 companies. For more than ten years, the companies have worked with universities and local government
to undertake the winter reed cutting (which takes place three times a year, from December to March). In recent years,
participation in the cutting has expanded from company employees and family members to include local residents, public
servants, museums, and schools. With 200 to 300 participants of all ages, the event now constitutes the largest cutting
operation in Shiga Prefecture. It has grown into an impressive conservation undertaking that brings together the wholecommunity.

An expanse of winter reeds

February 8, 2020: Winter reed cutting event(the event was held just before a surge in
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KOKUYO Group CSR Report 2021

How reed conservation can contribute to a low-carbon world: Showing the impact
Previously, the reed conservation work was evaluated using just a single metric: the area of lake in which reeds wereconserved (the only data point released by Shiga Prefecture). It was felt that there was potential for broader scientificevaluation. Meanwhile, across the country, conservation groups were promoting rate of carbon sequestration (capture andremoval of CO2) as an index for measuring the effects of forest thinning and other forest management work. Given that
reeds also absorb CO2, we decided that we could use the same measure for ReEDEN. In 2017, we started inviting
researchers to conduct a biomass survey during the winter cutting. Across a three-year period, the researchers measured
reed height, density, weight, thickness, and carbon sequestration. Consequently, we established a methodology for showing
the extent to which ReEDEN offsets CO2 emissions. Whereas before we could only evaluate the project in terms of areaconserved, we now had a completely different perspective. This biologic approach was praised by a group of academics
who had formed a committee to conserve reedbeds in the prefecture. Members of government, academia, and industry
joined forces to develop a tool that measures CO2 absorption in reeds by multiplying reed cutting area by reed heightequivalent. Released at the end of 2019, the formula has been published on Shiga Prefecture’s website. With the release of
the tool, people can now see 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 hasboosted participants’ motivation and brought more people on board. The project team plans to expand use of the tool with aview 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.

In November 2020, the project, by then 4 years’ old, was awarded the Minister ofthe Environment's Award for Climate Action. Unfortunately, the pandemic meantthat the award ceremony had to be held online. Still, we were delighted that the
project has now been recognized for contributing to the fight against the worldwide
menace of climate change, alongside its accolades for improving Lake Biwa’s
water quality, promoting the lake’s biodiversity, and promoting opportunities foryouth. As a local project, ReEDEN may be modest in scale, but it continues to playa valuable role in contributing toward sustainability.

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KOKUYO Group CSR Report 2021

KOKUYO's CSR
Charter
KOKUYO CSR

Corporate Proﬁle
KOKUYO Materiality

KOKUYO's Main
Business Domains
Environment

KOKUYO's Initiatives
and History
SocialInitiatives for Futureand Society

KOKUYO's Various
Initiatives

Introduction of KOKUYO s
Initiatives in 2020

Governance

Third-Party
Assessments

Content Index

Message from the
President

SocialTo respect the human rights of all stakeholders as we go about our business and CSR activities, the KOKUYO Group has
established the KOKUYO Group Code of Conduct for our employees, and the KOKUYO Group's Procurement Policy for ourpartner companies.

Kokuyo Group Code of Conduct

KOKUYO Group Procurement Policy
and Guidelines

51

KOKUYO Group CSR Report 2021

KOKUYO's CSR
Charter
KOKUYO CSR

Corporate Proﬁle
KOKUYO Materiality

KOKUYO's Main
Business Domains
Environment

KOKUYO's Initiatives
and History
SocialInitiatives for Futureand Society

KOKUYO's Various
Initiatives

Introduction of KOKUYO s
Initiatives in 2020

Governance

Third-Party
Assessments

Content Index

Message from the
President

SocialWorkstyle Reform
Basic Concepts
KOKUYO is generating change in the work styles of employees centered on how time is used so as to secure the ability forsustainable growth. KOKUYO seeks to contribute toward the growth of organizations and individuals by practicing work
styles that allow employees to independently choose the time and place of work while utilizing systems such as
telecommuting as well as by addressing factors obstructing the improvement of productivity to increase “disposable time.”

Systems
Achieving a Good Work-life Balance
The KOKUYO Group is committed to providing ideal working conditions with consideration forachieving a good work-life balance.
These efforts have been recognized by the government and three of the group companies havereceived a certification logo (nickname: Kurumin Mark) as of December 31, 2020. The Kurumin
Mark is a certification logo issued by the Ministry of Health, Labour and Welfare, which promotes
the improvement of the nation’s declining birth rate, based on the Law for Measures to Support theDevelopment of the Next Generation, to recognize corporations and organizations taking an active
stance in supporting child-raising.
Holders of Kurumin Mark as of December 31, 2020: KOKUYO Co., Ltd., KAUNET Co., Ltd., KOKUYO Marketing Co., Ltd.

Giving employees flexibility in where and when they work
To promote a more flexible and efficient workplace, we have introduced for some employees complete flexitime—with nopredetermined core period. We also try to find the most efficient balance between remote working and office working.

Re-employment System for Employees Who Left Their Jobs Due to Personal Circumstances
KOKUYO has a re-employment system for regular employees who left their jobs due to personal circumstances such as
marriage, child-bearing, childcare, family care, job relocation of spouse, study abroad, volunteer work, career change andother reasons recognized by the company. By bringing in the experiences and knowledge developed outside the KOKUYOGroup, it is hoped that these employees will further expand the diversity of the Group.

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

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KOKUYO Group CSR Report 2021

Initiatives in 2020

Play work: A new approach to work
In April 2020, we launched a new system of working and employee welfare. Based on Play Work, a concept promoted by
HR, the new system is designed to promote a flexible and adaptive workforce that celebrates individuality, ensuring thateach employee feels valued and empowered. To achieve this purpose, the new system overhauls the traditional fixed work
schedules. The system has the following components.
・Use of remote working
・Reduction of actual hours worked (we aim for each employee to work less than 1,930 hours per year)
・Provision of special leave to promote new approach to life and work
・New employee welfare program that gives employees more disposable time and encourages them to invest more in
wellbeing and learning
As people are living longer and leading longer working lives, we launched this program to ensure that our employees cancontinue to play an active role in society, enjoy a healthy body and mind, and have time for learning and personal growth.

Paperless accounting
In July 2020, nine companies in our corporate group overhauled their expense management system. As part of this change,
the companies went paperless for some of their accounting processes. The purpose of going paperless in accounting was
not only to streamline the accounting processes; it was also done to encourage workplace flexibility. We will continue toembrace opportunities for promoting a more flexible workplace.

Internal training course for understanding and using AI
From August to October, 2020, we ran an internal training course about
understanding and using AI. The course was conducted in Tokyo and Osaka andattended by around 70 people. Led by an outside instructor, the course used apractical learning format to teach programming and mathematics skills for handling
AI and machine learning. It also provided a chance to share ideas for applying AI in
business processes. Attendees learned strategies for navigating the AI bubble andfor accomplishing digital transformation*.
* Use of digital technology to transform business processes

Attendees listen to a lecture (Tokyo)

Introducing CarriRo®, a delivery robot
On December 3, 2020, KOKUYO Logitem introduced CarriRo®, a robot that canpull or follow carts and move autonomously. As this was the first time such a robot
had been used to deliver furniture to office buildings, KOKUYO Logitem worked
with the supplier to fine tune the robot during transportation. We will continue to
use digital and robotic technology to streamline operations at distribution sites.

CarriRo® unloading the furnituredeliveries

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KOKUYO Group CSR Report 2021

Eye tracking analysis at warehouse
KOKUYO Supply Logistics used eye tracking technology to boost the productivity
and quality of the warehouse picking process at its integrated distribution center in
Chubu. Patterns of visual attention were compared between experienced andnovice warehouse staff in order to identify issues and find ways to improve
productivity. The findings were incorporated into staff training and warehouselayout.
Visit the website of KOKUYO Supply Logistics’ integrated distribution center in Chubu
A screenshot from the eye tracker. The
red dot indicates point of gaze.

A program for awarding ideas for an empowered workplace
A strategic priority in our second medium-term plan is to accelerate workplace flexibility and productivity. This task requires
every employee to think independently and to take the initiative in boosting the efficacy and efficiency of the workplace. To
help encourage the necessary changes, we launched a program that rewards ideas for workplace flexibility and productivity
and another program that rewards good practices for the same. The 2020 award focused on ideas for new and better
workstyles, an issue that was particularly topical that year, as the pandemic had led to sweeping changes in working
patterns. It also introduced the “top pull prize” to honor leaders who helped their team achieve growth or improve theirperformance.
Employees contributed many ideas for turning the pandemic crisis into an opportunity. Each entry for the top pull prizeemphasized the team members’ gratitude toward the leader.
Senior managers presented the awards and commented on the ideas. Through schemes such as this, we aim to inculcate a
new workplace culture that rewards employees for taking the initiative.

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KOKUYO Group CSR Report 2021

KOKUYO's CSR
Charter
KOKUYO CSR

KOKUYO's Main
Business Domains

Corporate Proﬁle
KOKUYO Materiality

Environment

KOKUYO's Initiatives
and History
SocialInitiatives for Futureand Society

KOKUYO's Various
Initiatives

Introduction of KOKUYO s
Initiatives in 2020

Governance

Third-Party
Assessments

Content Index

Message from the
President

SocialBasic Concepts
KOKUYO aims to create a work environment where many positions and values are mutually recognized and where various
work styles are permitted, thus making it possible for each and every employee to draw on his or her innate abilities. We
have identified the following four basic themes related to diversity.

Systems
Measures for supporting employees with family commitments*
As part of our diversity efforts, we exceed regulatory requirements in helping employees balance work with commitments
such as childbirth, parenting, or eldercare. In the table below, underlines indicate provisions that exceed 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 a multiple pregnancy) to eight weeks after.

Spouse’s leave

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

Parental leave

Employees are entitled to a leave of absence to care for 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 ofleave a year or, if they have multiple applicable children, 10 days of leave a year (the leave canbe taken on an hourly basis).

Eldercare leave

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

Short eldercare
leave

Employees are entitled to take, for each care dependent, five days of leave a year or, if they havemultiple elderly dependents, 10 days of leave a year (the leave can be taken on an hourly basis).

Shorter hours

Childcare: Employees with children are entitled to take shorter work schedules until thechildren complete grade 3 of elementary school.

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KOKUYO Group CSR Report 2021

Eldercare: Employees with elderly dependents are entitled to take shorter work schedules for
up to three years for each dependent.
Work from home

Returnship

We currently allow a mixture of home and office working.
We run a returnship program to help reintegrate into the workplace people who resigned becauseof marriage, childbirth, childcare, eldercare, spouse relocation, overseas study, charity work, acareer change, or other valid reasons.

* These measures apply in KOKUYO and its major subsidiaries (as a rule, flexitime is available for all employees without any predefined coretime).
* View data on childcare and eldercare leave uptake

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 the Deaf). The students were employed in thecompany’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 structuralreform. This reform program involved spinning off our business units into new companies. 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” (meaning a disability-friendly employer that is counted as part of the parent company). In
December 2006, we founded Heartland, a subsidiary devoted to employing people with mental disabilities. As of June 1,
2020, people with disabilities make up 2.3% of the group’s workforce. As part of our effort to promote diversity andinclusion, we have launched an organization-wide project to encourage employees to overcome their differences, accept
one another, and unite around the common goal of sustained growth. This project involves an organization-wide effort togive employees with disabilities (members of KOKUYO K Heart) opportunities to participate in workflows.
* View data on employment of people with disabilities

Participating in the Iku-boss Corporation Alliance
KOKUYO has been member of the Iku-boss Corporate Alliance (Sponsored by
Fathering Japan) ever since the program began in December 2014.
This alliance advocates for “iku-bosses”—business leaders who encourage
employees to actively participate in family life. This project requires a change of
attitudes in management. Recognizing that employees have much of their time taken up by the demands of childcare,eldercare, and dealing with sickness, managers must provide an understanding and supportive environment so that
employees can balance family and work commitments and perform at their best level. This alliance puts us in touch withother companies that share the same commitment to achieving work-life balance for all employees.
Together with these companies, we discuss ideas about the modern leadership qualities that define an “iku-boss” and how
our organizations can foster such leadership. Our aim is to gain insights for improving our own approach to diversity
management and reforming workplace culture, as well as for improving the workplace solutions we offer customers.

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KOKUYO Group CSR Report 2021

Initiatives in 2020
KOKUYO Logitem: Smaller teams
In fiscal 2020, KOKUYO Logitem, as part of its vision for 2030, introduced a small-team approach to encourage a newworkplace culture that motivates and empowers employees.
The smaller teams contain a mix of members from across the organization, spanning organizational functions, hierarchicallayers, age, career track, gender, and place of work. Each team has a flat structure, as opposed to a hierarchical structure,
to encourage the diverse members to actively engage in the team’s project, which might concern future working patterns,
diversity, or the introduction of digital technology.

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KOKUYO Group CSR Report 2021

KOKUYO's CSR
Charter
KOKUYO CSR

Corporate Proﬁle
KOKUYO Materiality

KOKUYO's Main
Business Domains
Environment

KOKUYO's Initiatives
and History
SocialInitiatives for Futureand Society

KOKUYO's Various
Initiatives

Introduction of KOKUYO s
Initiatives in 2020

Governance

Third-Party
Assessments

Content Index

Message from the
President

SocialBasic Concepts
For KOKUYO to be a leading contributor to sustainability, our employees must never stop striving to create new and better
value for the shifting needs of our customers and society at large. Accordingly, we shall embrace diversity and inclusion, tap
into employees’ creativity, and keep employees engaged and challenged at work, so that our employees grow as thecompany grows.

Systems
Creating a cyclical process of employee growth and business growthIn fiscal 2018, we launched a new employee reward system. Line managers (kikanshoku) receive rank-based pay, whichreflects the person’s roles and responsibilities, with no regard to their age or experience. Non-managerial (unionized) staff
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 inorder to achieve a more differentiated approach to evaluation and treatment.
Our second three-year (FY2019–2021) strategy (Smart & Sustainable Transformation 2021) sets out a policy to make the
new system more effective in practice and to link employees’ development with our success as an organization—whichmeans matching the right talent to the right roles and giving opportunities for professional growth, so as to acceleratebusiness growth over the three-year period. In fact, we are increasingly promoting based on merit, not seniority. In a
growing number of cases, employees are promoted to line manager in their early 30s, to middle manager (department
manager) in their late 30s, and to an executive position in their 40s.
As we move ahead with our long-term vision, CCC 30, which we unveiled in February 2021, we will step up efforts tocultivate the entrepreneurial talent necessary to generate and nurture new businesses and address societal challenges.

The cyclical process of employee growth and business growth
Using challenges through the work of teams and individuals, KOKUYO advances initiatives aiming at spiraling up whilesolving business issues and facilitating individual growth.

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KOKUYO Group CSR Report 2021

Talent development
The new employee reward system is linked to a matrix that identifies actions for line managers and non-managerial staff
that will benefit their own growth and that of the organization. The actions vary depending on the person’s growth stage,
and they are grouped into three dimensions: skills development, goal setting / goal evaluation, and deployment.

Career Center: Encouraging employees to take on new challenges
In 2018, we opened the Career Center to facilitate our goal of linking employee growth with business success andempowering employees to challenge themselves and expand their limits. The Career Center offers employees one-on-one
careers counseling with a professional careers adviser. During the counseling, employees use a tool called Career
Challenge to communicate the challenges they feel they could take on, or the skills they feel they could improve, inconnection with the organization’s three-year strategy. Such one-on-one dialogues help clarify each employee’s intentions
for their professional development, giving managers a better idea of what work to assign them. In turn, the employees feel
all the more motivated and empowered.

Initiatives in 2020
Finding new challenges at work
20% Challenge: Internal moonlighting
To promote an empowered workplace in which employees actively pursue opportunities for professional development, welaunched 20% Challenge, a program of internal moonlighting in which participants spend 20% of their working timeengaging in a job for another organizational division. Organizational divisions issue recruitment notices for a certain jobs(“challenges”), employees apply for them, and the head of the division in question works with the HR team to find the rightcandidate. The program runs for three to 12 months, and participants’ achievements and efforts count toward theirindividual personnel evaluation. In the first year, 57 employees participated. These participants stepped acrossorganizational boundaries to engage in challenges such as market research for overseas businesses, strategy support,
R&Ding solutions for digital learning, and raising employees’ eco-awareness. The idea is that employees, by dividing theirtime 80–20 between their normal work and the new assignment, will raise workplace productivity without compromising
their normal work. The program is helping us to visualize workplace activity and identify aspects to rectify or recalibratethrough dialogues between the employees concerned and their managers and HR.

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KOKUYO Group CSR Report 2021

Examples of internal moonlighting(“challenges”)

Challenge number 4

Challenge number 7

into effect.

KOKUYO Marketing University: A training program for young employees
To ensure that our organization always offer a unique value proposition, we launched the KOKUYO Marketing University, apractical training program for young employees (employees who have been in the workforce for three to 12 years). The
program gives attendees a basic grounding in product planning and development. It also educates them in customer-based
marketing as used in the venture capital industry. After they have learned techniques for marketing strategy, attendees start
applying this knowledge in a project to create a new concept for a KOKUYO product. Under the guidance of externalmarketing professionals, they spend around half a year perfecting the product idea and then present it to the management.
The program started in 2017 and more than 100 young employees have attended. Now over four years’ old, the program
continues to provide a starting point for employee development and action. For example, attendees can enhance theirlearning 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 the employees to
accept an offer of redeployment and the fresh challenges it brings.

Final presentations delivered by employees who joined the programon its fourth year

Group photo at final presentation session for employees who joined
the program on its third year

KOKUYO Marketing Graduate School: A training program for managers
To ensure that our organization can adapt to the changes 10 years ahead, we need leaders who are forward-thinking andproactive. Rather than succumbing to complacency and inertia, such leaders analyze future scenarios objectively andproactively develop new strategies to meet the challenges ahead. To cultivate such leaders, we launched KOKUYO
Marketing Graduate School, a program designed to equip managers in their 30s or 40s with strategic planning skills and theability to lead the daily value creation process. During the program, attendees are presented with 10-year business themes
determined by the management. Under the guidance of external marketing professionals, they spend around nine months
engaging in team work to perfect their strategy and then present it to the management. Started in 2019, the program wasconducted online in 2020. Around 50 people attend. Of the strategies presented, two have now been incorporated into
commercialization planning phase, and two have been incorporated into the R&D process.

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KOKUYO Group CSR Report 2021

61

KOKUYO Group CSR Report 2021

KOKUYO's CSR
Charter
KOKUYO CSR

Corporate Proﬁle
KOKUYO Materiality

KOKUYO's Main
Business Domains
Environment

KOKUYO's Initiatives
and History
SocialInitiatives for Futureand Society

KOKUYO's Various
Initiatives

Introduction of KOKUYO s
Initiatives in 2020

Governance

Third-Party
Assessments

Content Index

Message from the
President

SocialBasic Concepts
We use a variety of means to promote effective communication between employees. For example, we use the intranet forannouncements and organize informational events in the workplace.

Systems
Employee satisfaction survey
We conduct an annual employee satisfaction survey with a view to providing an employee-friendly workplace.
Based on the responses, we interview employees to identify their concerns and provide guidance to help them resolve
issues themselves. For example, we use instructional videos showing examples of how other employees resolved similar
issues.
Besides the annual survey, we conduct a monthly pulse survey to get a “pulse check” on the state of the team and resolve
issues through dialogue.

Initiatives in 2020

TeleCross!!!: Building an employee network
Some offices run “Cross!!!”—a get-together event based on a learning activity or
hobby. In April 2020, we started an online version of the event called “TeleCross!!!”Amid the pandemic-driven shift to remote working, this virtual meetup has helped
ease employees concerns and raised their morale; and because the event wasonline, remote workers could participate.

Employees participating in TeleCross!!!

First online version of employee welcome event
The pandemic forced us to cancel many employee events, and many of the newhires had to continue training at home. To build communication and rapport andease anxieties under these circumstances, we held an online welcome event. This
online event was designed to go beyond the limits of an offline welcome event. For
example, it included ice-breaker activities suited to remote participation at home.
The event offered many new ideas for facilitating communication amid the
pandemic.
An ice-breaker activity: Participants sharepictures that they drew based on a given
topic

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KOKUYO Group CSR Report 2021

KOKUYO's CSR
Charter
KOKUYO CSR

Corporate Proﬁle
KOKUYO Materiality

KOKUYO's Main
Business Domains
Environment

KOKUYO's Initiatives
and History
SocialInitiatives for Futureand Society

KOKUYO's Various
Initiatives

Introduction of KOKUYO s
Initiatives in 2020

Governance

Third-Party
Assessments

Content Index

Message from the
President

SocialBasic Concepts
KOKUYO believes that creation of a safe, secure and pleasant working environment, safety measures in times of disasterand other measures are the foundations for employees to work vigorously and demonstrate their full abilities. In developing
measures for employee safety, we listen to the ideas and feedback of the employees themselves.

KOKUYO Group Safety and Health Basic Policy[Basic Policy]
We take a safety-first approach on the belief that mental and physical wellness lies at the cornerstone of all our business.
[Code of conduct]
1. Comply with all health and safety-related laws (e.g., the Industrial Safety and Health Act), regulations, and internal
standards.
2. Encourage continuous and self-led improvement in the workplace and take active steps to prevent workplace injuries andillnesses.
3. Foster a culture of openness and engagement to protect the health and safety of everyone involved in KOKUYO Group’sbusinesses.

Systems
Health and safety Conferences in production and construction sites
During Japan’s National Safety Week* (first week of July), we organize health-and-safety conferences to enhance safetyconsciousness across the corporate group.
For the 2020 event, anti-infection measures were taken.
* Run by the Ministry of Health, Labour and Welfare and the Japan Industrial Safety & Health Association, National Safety Week is a campaignthat calls upon employers to take voluntary actions to prevent workplace injuries. It also aims to raise awareness about health and safety andentrench workplace safety.

Construction: KOKUYO Group Construction safety conferences
The KOKUYO Committee for Promoting Safety and Health in Construction organizes safety conferences in seven venues
across Japan on the belief that safety for employees and partners is critical to business success. In a first, the conferencesin 2020 were webcasted. At the conferences, the committee reported its activities and awarded prizes to construction
partners.
Factories: KOKUYO Group Health-and-safety conferences and safety patrols in Japanese production sites
We organize health-and-safety conferences and safety patrols for five factories and seven worksites in Japan. For the 2020
conferences, care was taken to avoid the three C’s (closed spaces, crowded places, and close-contact settings). As in past
years, presenters showed data about industrial accidents and explained our health and safety policies, and the attendees
engaged in a safety workshop.
To foster a good safety culture in the workplace, we will continue to provide, throughout the group, an opportunity once
every year to pause and reflect on safety matters.
Development: Safety conferences and safety patrols in development
For employees involved in development, we hold a safety conference at Head Office and run safety patrols. The conference

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KOKUYO Group CSR Report 2021

includes workshops on the development of KOKUYO products and on quality testing. The 2020 conference was held online
to avoid the three C’s. The conference is designed to raise attendees’ awareness about the prevention of industrial
accidents, an essential matter given that the employees concerned handle machinery and a plethora of chemicals. Holding
the event online resulted in a higher number of attendees compared to past years, as it was possible for remote workers
and staff at the Shinagawa office to attend online.

Initiatives in 2020

Group-wide factory conferences in 2020
From August to October, the KOKUYO Group Central Safety Health Committee held factory conferences with forepersons
and safety managers assigned to group sites in Japan and abroad. The conferences were held to exchange views on thehealth and safety matters pertaining to each company and the matters to be addressed in the future. Candid views were
exchanged between participants from different professional backgrounds in order to entrench health and safety in factories
across the group.
Guided by the principle that safety for employees and partners is critical to business success, we will continue to hold suchconferences to promote the health and safety of employees and foster a motivated, empowered workplace culture.

Coronavirus taskforce, anti-infection measures in offices
In late January 2020, we set up a taskforce to respond to the emerging threat of
the coronavirus. After the outbreak became a pandemic and Japan declared its firststate of emergency, we worked to ease the concerns of employees, whose work
patterns were diversifying. We then took measures to prevent infections. Asidefrom providing hand sanitizers, we introduced our own system for tracking
employees in free-address offices. Specifically, each workspace is assigned a code
number, and employees who use the space input the code number into the system.
Other anti-infection measures included using Campus notebook-style paper as
desk mats and reducing shared workspaces.

Restricted seating for conference tables—tables used for solo work

KOKUYO Logitem’s initiatives
Using videoconferencing for risk prediction training
KOKUYO Logitem holds safety conferences with partners during the one-monthlead-up to National Safety Week. The conferences in 2020 were held online to
avoid the three C’s. During National Safety Week, the company awarded prizes forsafety mottos and ran a webinar on risk prevention.

Risk prevention training webinar

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KOKUYO Group CSR Report 2021

In a first for the distribution industry, KOKUYO Logitem introduced communication device Bonx Grip
In a first for the distribution industry, KOKUYO Logitem equipped its warehouse
workers with Bonx Grip* communication devices in order to enable smoothercommunication and better safety during work operations. Bonx Grip consists of an
earpiece and app that allows the user to communicate verbally with other users.
We will continue efforts to make operations at distribution centers and delivery sites
safer, more accurate, and more efficient. We will also continue to introduce newcommunication methods to enhance the quality and value of our products andservices.
* With support for 3G, 4G, and WiFi, Bonx Grip enables hands-free communication with multiple
users. Unlike conventional transmitters and receivers, there are no limitations on place or numberof users.

With Bonx Grip, the user cancommunicate smoothly with the officewhile operating a forklift truck.

KOKUYO Logitem Okayama Distribution Center: 9,000 consecutive days without an accident
On June 13, 2020, KOKUYO Logitem Okayama Distribution Center reached its
9,000th consecutive day with no accident on the premises. To mark the milestone,
the center held a ceremony on July 28, during which attendees looked back on thesafety efforts of staff and partners over the 32 years of no accidents.
The center will continue to promote safety consciousness and safety behavior toextend its clean sheet.

A standup meeting at KOKUYO Logitem’s
Okayama Distribution Center—members
repeat the company’s vision to maintain aclean sheet in safety65

KOKUYO Group CSR Report 2021

KOKUYO's CSR
Charter
KOKUYO CSR

Corporate Proﬁle
KOKUYO Materiality

KOKUYO's Main
Business Domains
Environment

KOKUYO's Initiatives
and History
SocialInitiatives for Futureand Society

KOKUYO's Various
Initiatives

Introduction of KOKUYO s
Initiatives in 2020

Governance

Third-Party
Assessments

Content Index

Message from the
President

SocialBasic Concepts
The KOKUYO Group is promoting safe, secure, and pleasant working environments as they are vital to smooth business
operations while encouraging active exchange of opinions with the field site.

KOKUYO Health and Productivity Management Declaration
KOKUYO believes that to secure sustainable corporate growth, it is important to have environments and systems whichallow employees to apply themselves safely and healthily in mind and body. Therefore, we undertake initiatives to maintainand promote the health of our employees. We promote health and productivity management together with employees, labor
unions, and health insurance associations to create products and services that apply the creativity of each and every
employee who are healthy in mind and body. This is so as to contribute toward society’s vigor as well as healthy work andstudy, and to meet the expectations of our stakeholders.

Systems
Priority tasks
・Continuously improve the workplace to support the physical and mental wellbeing of employees.
・Provide health checks and follow-ups and offer a range of medical options to maintain employees’ health or prevent
deterioration.
・Analyze the results of stress checks and other employee surveys to identify how to enhance organizational support andpromote employees’ mental health and engagement.
・Provide employees with information and education to promote self-care.
・Facilitate flexible work arrangements—allow remote working, reduce overtime, encourage uptake of annual leave,
support employees with caring commitments, and help employees balance work with family obligations.

Health Promotion Management System
To promote health and productivity management, KOKUYO has in place a health promotion management system for theentire Group based on the KOKUYO Group Occupational Safety and Health Basic Policy by the KOKUYO Group Central
Safety Health Committee. Health enhancement managers and staff are appointed in each Group company, and initiatives toimprove health within the entire Group are undertaken as one by human resource departments, labor unions, healthinsurance associations, and health management staff.

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View data on health-promotion performance here

Initiatives in 2020

Recognition as employee-friendly company
On March 2, 2020, KOKUYO and Kaunet became two of the 500 whitelistedcompanies in an award program run by the Ministry of Economy, Trade andIndustry and Nippon Kenko Kaigi, earning the official designation “2020 CertifiedHealth & Productivity Management Outstanding Organization (White 500).” On thesame date, KOKUYO Marketing earned a separate accolade under the same
program (“Health and productivity Management Outstanding Organization”). The program (officially translated as “2020
Certified Health & Productivity Management Outstanding Organizations Recognition Program”) gives recognition tocompanies that make exemplary efforts toward a healthy and productive workplace. We will continue such efforts in linewith the KOKUYO Health and Productivity Management Declaration released in October 2019.

Employee health goals, 2020 results
In 2013, we set concrete goals for promoting health behaviors that help prevent lifestyle diseases. Since then, our internal
health insurance associations have worked with the health management office on actions to meet these goals.
The health-promotion activities include tracking employees’ daily steps and weight, organizing fun walking campaigns, andrunning diet seminars in partnership 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 ahealth check. For example, comprehensive medical checkups (called “ningen dock”) are available for employees who wantthem. In 2020, we had to suspend some services because of the pandemic, but we still worked to promote healthconsciousness by running an online survey on health behaviors and an e-learning course.

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An example of health targets (specific health tasks)
2019 result

2020 result

2021 target

Rate of employees with BMI > 25

24%

25%

22%

Smoking prevalence (from health-check
data)

31%

23%

21%

Rate of colorectal cancer screening

40%

92%

95%

Rate of cancer screening, gynecologic
screening

20%

35%

43%

Scope: KOKUYO, Kaunet, KOKUYO Marketing, KOKUYO Logitem, KOKUYO Supply Logistics

KOKUYO Health Action
Fitness challenges that earn rewards
In 2020, we launched Play Work Mileage, a program that tracks and rewards fitness efforts. Employees earn miles bycompleting or gaining progress in health goals.
Walking Challenge
Walking Challenge is a health-promotion program in which employees earn monthly points according to their average
number of steps. The program includes fun features. For example, employees can set their own virtual walking course andtrack their rankings on a leaderboard.
Lifestyle Challenge
In Lifestyle Challenge, employees record their health behaviors to track the healthiness of their lifestyle. There are ninecourses and a total of 50 items, including diet, exercise, sleep, quitting smoking, dental and optical health, and physical andmental refreshment. Employees earn points regardless of whether they achieved the goal in question.
A smoking awareness campaign in the context of the indoor smoking ban, World No Tobacco Day, and Covid-19
Data from Japan Tobacco’s annual Japan Smoking Rate Survey indicates a high rate of smoking among male employees inour corporate group. On April 11, 2020, Japan banned indoor smoking with some exceptions. In conjunction with the ban,we stepped up efforts to raise employees’ awareness of the risks of smoking, emphasizing that the pandemic hasheightened the risks. For example, we now warn employees that smokers are more likely to contract flu, cold, andpneumonia, and that smoking while working at home will expose other occupants to the risks associated with secondhand
smoke.
Caring for health when working at home
The pandemic has increased the amount of work performed outside the traditional office. We provide information on how tocreate a healthy remote workspace, such as stretching techniques for relieving physical and mental fatigue and healthy
configurations for tables, chairs, and other furniture. As well as specific guidance (such as the best screen height and angle
to prevent eye strain or neck and shoulder pain), a list of health-related contacts is provided.

Health insurance association, increased subsidy for breast cancer screening
Across the group, rates of screening for breast cancer and cervical cancer are low. Accordingly, in April 2020, our healthinsurance association raised the subsidy for breast cancer screening from 5,000 to 10,000 yen. Women’s cancers develop
in young adults, and breast cancer is the most commonly diagnosed of these cancers in Japan. We will continue our efforts
to help prevent or detect cancer and promote cancer awareness.

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KOKUYO Group CSR Report 2021

Mental health action
Along with the mandatory stress checks, we conduct an employee survey that measures employee satisfaction andcompliance.
To promote a culture of self-care in which employees feel comfortable asking for help, we have introduced the Employee
Assistance Program, an externally run program that encourages employees to recognize the warning signs and symptomsof stress and to seek preventive health services at an early stage.
Based on the results of employee surveys, we have taken steps to improve the workplace (to foster a culture of openness
around mental health). Results for organizational divisions are color coded red, yellow, and green, with red indicating thatthe division in question requires priority intervention. Interventions include on-site discussions, workshops, and they are
aimed at improving communication in connection with mental health. Through such measures, we aim to decrease thenumber of red divisions.

Percentage of divisions that are red

2019 result

2020 result

2021 target

11.9%

12.1

10%

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KOKUYO Group CSR Report 2021

KOKUYO's CSR
Charter

Corporate Proﬁle
KOKUYO Materiality

KOKUYO CSR

KOKUYO's Main
Business Domains
Environment

KOKUYO's Initiatives
and History
SocialInitiatives for Futureand Society

KOKUYO's Various
Initiatives

Introduction of KOKUYO s
Initiatives in 2020

Governance

Third-Party
Assessments

Content Index

Message from the
President

SocialBusiness Concepts
The KOKUYO Group creates new value with our business partners to pursue customer satisfaction. In addition, we
formulated the KOKUYO Group Procurement Policy to build relationships of trust with business partners and grow mutually.
Furthermore, based on this KOKUYO Group Procurement Policy, we prepared the KOKUYO Group Procurement
Guidelines as matters that we hope to achieve together with our suppliers.

Systems
KOKUYO Group Procurement Policy and Guidelines
As corporate activities are becoming more globalized, KOKUYO Group is well aware that managing its own company andsubsidiary companies is insufficient for fulfilling the scope of social responsibility. In 2013, KOKUYO therefore invited 32
principal subcontractors, gave an account of the procurement policy and implemented a self-examination questionnaire for
feedback to the subcontractors. In 2014, we sent the basic procurement policy and guidelines to nearly 400 suppliers. We
will strive to further build relationships of trust through these activities.

KOKUYO Group Procurement Policy
We shall communicate to suppliers our founding vision (to enrich the world through our products and services),build trust with suppliers, and work with suppliers to fulfill our corporate social responsibility.
Quality and safety standards
To continue to win the trust of customers, we shall aim for the optimum in quality and safety in view of theattributes of the source country or region.
Mutual growth
We shall observe local regulations and social norms, deal with suppliers fairly, and build trust relationshipsthat emphasize integrity and mutual growth.
Respect for human rights
The Group understands the culture and business customs of various countries and regions and aims for asociety where the rights of all people are respected.
Environmental action, coexisting with society
We shall co-exist with society as an upstanding corporate citizen by engaging in international environmental
efforts and playing an active role in the local community.

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KOKUYO Group CSR Report 2021

KOKUYO Group Procurement Guidelines

71

KOKUYO Group CSR Report 2021

Initiatives in 2020

ACW award livestreamed to eight offices—Online for audience participation
On November 6, 2020, we livestreamed a ceremony (“Breakthrough Live!”) toaward the efforts of our retailers in Japan who are members of Action to ChangeWorkstyle (ACW*). ACW awards are held every year, but the 2020 ceremony washeld online because of the pandemic. The online ceremony connected eight offices
across Japan, and over 1,000 ACW members participated. For the event, we
prepared a program of audience participation in which participants will have fun
and learn everyday strategies for breaking through obstacles and winning theirsales pitch. Exploiting the online format, we made the award ceremony even moreenjoyable and memorable than in past years. We will continue to devise interestingideas for fostering engagement in ACW.
* Action to Change Workstyle is a program that supports bottom-up approaches for workstylereform in partnership with retailers in Japan who endorse the program.

Furniture: Online conferences with production plants
In the furniture business, we hold biannual conferences with the management ofour critical furniture production plants.
In 2020, both conferences (in August and December) were held online because of
the pandemic. During these videoconferences, there was a virtual tour of our
Shibayama plant, a review of the peak demand season, and a briefing on sales
forecasts. During the December conference, there was a review of the fiscal period
and briefings on strategy for the upcoming peak season and market trends.
Besides the above, we commended and thanked suppliers who exemplified bestpractices, listened to presentations from the suppliers about cooperative strategies
for mutual growth, and confirmed the suppliers’ commitment to leveling up acrossthe whole of the furniture business. In November, we held a workshop on market
trends and marketing strategies for mid-ranking design and development staff
employed by our suppliers. The participants delivered presentations about market
trend analysis and design concepts related to the manufacturing of our products.

Stationery: On-site supplier audits
In the stationery business, we conduct on-site supplier audits to confirm the reliability of the environmental labeling ofproducts (including the environmental information provided in product catalogues).
In 2020, the pandemic imposed limitations on the on-site audits. However, we still managed to check suppliers’ compliancewith new rules that were introduced in 2019.
To confirm that our suppliers are meeting the environmental standards stipulated in the Act on Promoting Green
Procurement, we perform on-site audits in accordance with our auditing procedures. During the audits, we check whether
the supplier uses the required percentage of old paper or recycled resin in the product, whether it has introduced into the
production flow materials of the required standard, and whether the materials it uses are legally sound. We will continue

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efforts to ensure the reliability of environmental labeling by working with suppliers to find the best ways of meeting
environmental standards and by sharing examples of corrective actions that enhanced the reliability of manufacturing
management. To improve customer confidence in our products, we will routinely share our strategies and policies with
suppliers and distributors with a view to building trust relationships that are mutually beneficial over the long term.

Spatial design: KOKUYO Construction Subcontractors Conference
In October 2019, we started holding the KOKUYO Construction Subcontractors
Conference with a view to developing our spatial design businesses. Thisconference plays a core role in coordinating efforts with our partners in theconstruction sector. In January 2020, we released a periodical, Future Value: CoCreation, as a tool for communicating with the partners. The publication includes
reports about executive conferences at Head Office, reports about action plans,and case studies of companies that set records in consecutive no-accident days.
As used in the title, “co-creation” expresses our desire to work collaboratively withpartners to generate innovative ideas and achieve mutually beneficial outcomes.
We will continue these collaborative efforts to enhance the value we offer
customers and develop our spatial design businesses.

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The logo of the KOKUYO Construction
Companies Conference

KOKUYO Group CSR Report 2021

KOKUYO's CSR
Charter
KOKUYO CSR

Corporate Proﬁle
KOKUYO Materiality

KOKUYO's Main
Business Domains
Environment

KOKUYO's Initiatives
and History
SocialInitiatives for Futureand Society

KOKUYO's Various
Initiatives

Introduction of KOKUYO s
Initiatives in 2020

Governance

Third-Party
Assessments

Content Index

Message from the
President

SocialBasic Concepts
KOKUYO always develops new products and services from the perspectives of customers, and, without being satisfied withthe present conditions, we continue to improve the safety and quality of our entire product line and services.

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 havestandardized the manufacturing (“craftsmanship process”) for our three main kinds ofbusiness: office furniture, stationery, and Kaunet’s office supplies. Our quality management
systems, as well as complying with the requirements specified in ISO 9001:2015, arecontinually 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 in hand with sustained business growth.

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 landscapeJanuary 1, 2019
Hidekuni Kuroda
President and CEO* For stationery, standardization covers only KOKUYO-brand products. For office supplies (made by Kaunet), it covers only Kaunet-brandproducts.

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.

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KOKUYO Group CSR Report 2021

1) Continually improving quality assurance
To ensure that customers can use our products safely and securely, we continually improve our system for quality
assurance by updating the key processes (design review, safety review, production observation, chemical safety
management, legal compliance). We also perform risk assessments to identify and mitigate potential risks.
2) Inspection and testing based on international standards
When testing and inspecting products, we apply international standards. We evaluate testing and inspection processes witha view to improving the country-specific standards. Additionally, we endeavor to do more to catch defects before the productis 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 intoday’s world, where people have a plethora of information at their fingertips. Accordingly, we need to respond all thequicker 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 andminimizes inconsistencies in responses.
4) Testing for quality, testing for value
We have always performed thorough quality evaluations when updating products orreleasing new ones, and we recently introduced robotics to enhance the reproducibility andaccuracy of the testing. For a product to satisfy customers, it must not only be reasonably
priced and reliable; it must also have a wow-factor. We have started quantifying the extent
to which a product has this.
Robotics technology for quality
testing

Quality assurance for furniture
Our furniture businesses attained ISO 9001 certification in 1997. Since then, we have standardized the marketing, planning,
design, production, and installation processes for furniture. We use a PDCA cycle to ensure that we always provide
products and services that are tailored to the changing ways in which people work, study, and live. We continually strive toimprove our manufacturing, delivery, and installation. We listen to feedback from customers and use this feedback to informand guide our continual-improvement activities.

1) Setting high standards for craftsmanship
When developing a product, we assess safety and functionality using a variety of metrics. As well as measuring the productagainst the Japanese Industrial Standards and other industry standards, we measure it against our own standards, which
are 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 to75

KOKUYO Group CSR Report 2021

prevent a similar defect.
If there is a serious safety issue, the Risk Compliance Committee will determine the response. To limit the damage, we will
notify the relevant authorities and issue notices on our website and in newspapers and other media to alert consumers.
3) Public notices concerning safety or quality issues
We use our website to alert consumers about safety or quality issues with our products.

KOKUYO corporate site
“Public notices on our website”

Quality assurance for Kaunet’s products
Kaunet has a huge lineup that includes stationery, office supplies, food and drink, home appliances, gifts, medical
equipment, shop equipment, order-made business cards and seals/stamps, and office furniture. The business has around athousand suppliers. It also has its own premium brand, Kaukore, which emphasizing workplace productivity. At least 5,200
products are sold under this brand. Kaunet always strives to develop useful products based on ideas from the user’s
perspective. To ensure that its products are safe and command confidence, Kaunet works together in the value chain to
improve not only the quality of its goods but also the customer service at call centers and delivery.

1) Kaukore, Kaunet’s premium series
Kaukore, Kaunet’s premium series, features solutions to customers’ problems. Kaunet will keep producing unique problemsolving products based on the feedback of customers and ideas of employees.

2) Hearing it straight from the customers : Monitor Kaunet
Kaunet operates Monitor Kaunet, a web community through which it interacts withcustomers directly. Monitor Kaunet helps Kaunet understand the concerns and problems
customers experience on a daily basis, providing inspiration for product ideas.
Our efforts on simple packaging

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 toexisting products and services as well as to new products. Kaunet shares the feedback throughout the entire company sothat it can improve its products and services.
4) Trustworthy delivery service
Customers can order Kaunet products on the company’s website or from its printed catalog. Goods are delivered on thesame day or on the following day at the latest. An assembly service is also available for bulky furniture and items that aretricky to assemble. For this service, delivery staff trained in furniture assembly will assemble and install the item in thecustomer’s office or home and take all the packaging away with them.

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Office Activities in Response to Disasters

1) Researching solutions for earthquake-resilient offices
More needs to be done to mitigate the risk of earthquakes. This point is starkly illustrated by historic disasters such as the
1995 Great Hanshin earthquake and the 2011 Tohoku earthquake, and it is a concern that our customers have often raised.
Accordingly, we are testing a number of ideas for earthquake resilience. The KOKUYO Disaster-Preparedness Lab has
researched ways to make disaster-preparedness more practical for office workers. From the vast body of data it
accumulated, the lab team derived a way to model the relationship between seismic waves and earthquake-resiliencemeasures and established an objective criteria for measuring the earthquake-resilience of furniture. Using this criteria, weoffer customers a menu of options with varying levels of earthquake resilience and cost so that they can choose the
combination that suits their needs and budget.
* View the lab’s findings on earthquake-resilient offices"

2) A menu of disaster-preparedness options
Disaster preparedness is an essential component of business continuity planning. We have developed both goods andsolutions (installation, operation) to fulfill this need. Our Parts-Fit series features goods for disaster preparedness, whichwere designed to function effectively in times of non-emergency as well as emergency. We also provide Sonaeru, aguidebook on disaster preparedness. Our aim in providing these goods and services is to help customers reconcile theneeds of the everyday work environment with the need to provide for times of emergency, as expressed in Sonaeru’sslogan, which loosely translates as “disaster-preparedness nestled with everyday work.”

PARTS-FIT

elecabi: A cabinet for elevators designed asa safety measure for emergencies

Initiatives in 2020

Online workshop for the internal auditing team
Having obtained ISO 9001 certification in 2019, we organized a workshop for theinternal audit team to raise their expertise in our quality management system.
The workshop consisted of a lecture and learning tasks in which the attendees
learned how to use turtle diagrams and other tools to visualize and analyze
processes. The event was well appreciated by instructor and attendees alike. In aquestionnaire completed after the workshop, around 90% said that their ability
improved as a result. We will continue to use events such as this to promoteawareness of our quality management system among internal and external audit
teams.

77

The workshop was conducted online to
avoid the risk of infection

KOKUYO Group CSR Report 2021

Tenth KOKUYO Supply Logistics Contest
On October 17, 2020, we held the tenth KOKUYO Supply Logistics Contest. This
year, the contest was a hybrid event, held both online and in person. A record highof more than 80 people attended, including those involved in production and thosein marketing and sales. The event was observed by KOKUYO Supply Logistics, ourpartners, and our group companies in Japan and overseas. Six presentations werecommended in order to encourage the rollout of continuous-improvement activities
and greater group solidarity. The contestants presented ideas for streamlining
production, ordering, and delivery processes, for reducing heavy work, and for
The presenters
continuously improving operations and production. We will continue initiatives suchas these to promote collaborative efforts for continuous improvement and to further strengthen coordination between eachbusiness.

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KOKUYO Group CSR Report 2021

KOKUYO's CSR
Charter
KOKUYO CSR

Corporate Proﬁle
KOKUYO Materiality

KOKUYO's Main
Business Domains
Environment

KOKUYO's Initiatives
and History
SocialInitiatives for Futureand Society

KOKUYO's Various
Initiatives

Introduction of KOKUYO s
Initiatives in 2020

Governance

Third-Party
Assessments

Content Index

Message from the
President

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

Systems
A System for Utilizing Feedback from Customers
Our Customer Support Center handles more than 400 inquires a day—reportedly the highest capacity for the industry.
Around 3% of the calls are complaints. All customer feedback—positive and negative—is shared within the company toidentify improvements to make in product development and customer service.
To help disseminate customer feedback throughout the organization, we use VoiceClip, an internal website that sharescustomer feedback, revealing to employees what customers expect of us. The content on VoiceClip is updated weekly andaccessible to all employees throughout the corporate group. Another tool we use is VoiceDB, a database of past customer
inquiries. This data is 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.

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KOKUYO Group CSR Report 2021

To help inform staff at the Customer Support Center, the center displays defective
products as well as new products. Because we want to keep enhancing thefrontline of the customer interface, we provide training to the staff so that they canhone their customer service skills and leave the customer satisfied by the end of
the call.

A display in the Customer Support Center
showing examples of how defective
products were rectified after incorporating
customer feedback

Initiatives in 2020

Customer Support Center’s system revamped
In October 2020, the Customer Support Center revamped its system for handling inquiries.
The new system enables staff to share customer feedback (comments, complaints, and praise) throughout the corporategroup in real time.
Because it is now quicker and easier to analyze how past inquiries were managed, we now use the results of analysis toimprove our FAQ content and operator training and to respond to customer inquiries quicker and more effectively. We willcontinue our efforts to share customer feedback with business units in order to create more opportunities for making the
product or service in question even more useful and valuable.

Kaunet: Kau-Box opened, opening event livestreamed on social media
On October 1, 2020, Kaunet opened its new showroom, Kau-Box, on the groundfloor of The Campus. Customers are able to visit Kau-Box by prior appointment, so
Kaunet organized a livestream of the newly opened showroom to raise customers’
awareness about it.
Kau-Box showcases products from Kaunet’s premium range, Kaukore. It also
provides advice on the layout of office furniture.
Kau-Box website

China: Participating in the booming live commerce market
The pandemic has driven up demand for online shopping in China. To capitalize on
this trend, KOKUYO Commerce (Shanghai) started engaging in live commerce (aform of online shopping in which sellers interact with shoppers and sell the
products in real time) using China’s largest live commerce platform. The livestreamin August, for which the company hired influencers, won 110 million yen in sales injust 20 minutes. The livestream in November, which was held on Singles’ Day, got
30 thousand views and sales of 307 million yen in sales. We will continue exploring
effective online marketing strategies to expand business in China.

Livestreaming studio in the officepremises of KOKUYO Commerce(Shanghai)

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KOKUYO Group CSR Report 2021

KOKUYO's CSR
Charter
KOKUYO CSR

Corporate Proﬁle
KOKUYO Materiality

KOKUYO's Main
Business Domains
Environment

KOKUYO's Initiatives
and History
SocialInitiatives for Futureand Society

KOKUYO's Various
Initiatives

Introduction of KOKUYO s
Initiatives in 2020

Governance

Third-Party
Assessments

Content Index

Message from the
President

SocialBasic Concepts
KOKUYO strives to be a trusted corporate citizen on both regional and national levels via proactive interaction and planningwith regional communities, while respecting regional culture and customs and encouraging their advancement.

Initiatives in 2020

Six KOKUYO delegates speak at Kobe University
From December 2019 to February 2020, six representatives from KOKUYO
delivered lectures at Kobe University on the subject of business leadership. The
representatives spoke about the value of integrating consumer perspectives into
product development and business strategy. Through such visiting lectures, we aim
to reach younger audiences, change their impression of the KOKUYO brand (wewant them to see our products as innovative, as well as friendly and convenient),
and thus build a strong brand following among the young. We will continue
reaching out to young people in this way.

The six speakers from KOKUYO“Opening a new page in Tokyo”: An Olympics themed school trip for junior high schoolers
In January 2020, we hosted an Olympics themed school trip for junior highschoolers. The extracurricular event was attended by around 30 students from ajunior high school in Tokyo (Adachi Senju Sakura-Dutsumi Junior High School).
The students listened to a lecture titled “KOKUYO and Tokyo 2020,” whichconveyed our message of support and our hope that the event would “open a newpage in Tokyo.” They then engaged in a discussion session, delivered
presentations, and toured a showroom. The event proved valuable, with students
contributing fresh, thought-provoking comments.
The school has organized various school trips to local businesses and Olympic
venues, but a student survey indicated that KOKUYO was the most popular as
school trip destination.

Students attend a lecture

Simple face shields and plastic folders supplied to healthcare workers free of charge
To support frontline healthcare workers during the pandemic, we supplied theworkers with some 43 thousand simple face shields (which we produced
ourselves). We also supplied, for use as substitute face shields, some 36 thousand
folders from the Rail Clear Folder series, which uses plastic that is clear andstrong. The materials were all supplied free of charge up until the end of May 2020.
Additionally, when Osaka University launched a crowdfunding campaign to supply
healthcare workers with face shields made from clear plastic folders, we supplied afurther 100 thousand folders from the Rail Clear Folder series as part of thecampaign. As before, we supplied the materials for free. We will continue tocontribute our stationery-making knowhow to the fight against the coronavirus.

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Simple face shield (headband face shield)

KOKUYO Group CSR Report 2021

* We decided to launch the above initiative after a medical expert stated that folders from the Rail
Clear Folder series can serve as substitute face shields as they are made from clear and strong
plastic.

Plastic folder (fu-TP750)

KOKUYO Design Award 2021: Post-Normal
The KOKUYO Design Award is designed to gather ideas for products that will
innovate the way people work, learn, or play. Since it began in 2002, the award
program has sought product ideas that add value to KOKUYO and the wider
society. The theme for the 2020 award (the 18th year) was “post-normal”—a time oftransition when old certainties no longer apply. The theme focuses on how the
pandemic has prompted such a transitional state across the world, and it was
intended to inspire people to reevaluate their possessions and consider the qualityof a product and whether the product offers universal value for the future.
Find out more about the KOKUYO Design Award >Field Cast notebooks delivered to 80 thousand Olympic volunteers
As a Tokyo 2020 Official Supporter (in office furniture and stationery), we wanted to
do our part to support the gallant Olympic volunteers. Accordingly, we supplied theTokyo Organizing Committee of the Olympic and Paralympic Games with a special
series of our Campus notebooks, Field Cast, in an amount enough for 80,000
volunteers. Designed exclusively for the organizing committee, the cover of theField Cast notebook cover, inside
Field Cast notebooks features the same blue color scheme used in the volunteers’
uniforms, overlaid with the check pattern used in the 2020 Olympic and Paralympic
emblems along with the Field Cast logo. The notebook was designed with the intention that volunteers from all backgrounds
will use it to record their once-in-a-lifetime experiences.
We will continue doing our part to create a buzz around Tokyo 2020, believing that the preparations leading up to Gamesare just as valuable as the event itself.

Campus Art Awards 2020: 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 highschool and high school. The award program began in 2015, and 2,071 works wereshowcased this year.
The theme for 2020 was titled “my sweet hometown.” This theme focused on thelandscapes, 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 notebooksfeaturing the person’s winning picture. For the top group prize, the winning school
received 1,000 of the notebooks featuring the winning picture.
Find out more about the Campus Awards >82

The winning picture: Haru wa sugu soko
(Spring up close)
Moyuru Kondo
Akita Senior High School (affiliated with)
Akita University of Art

KOKUYO Group CSR Report 2021

Job Study initiative
In 2005, we launched Job Study, a cross-industry forum in which HR professionals
discuss ideas on careers counselling for students and then develop their own
seminars based on the outcomes of the discussion. We played the leading role insetting up Job Study, and we now have charge of the general running of theinitiative. A major concern at the time Job Study began was the high turnoverrate—30% of college graduates were quitting their first job within three years. To
address that issue, we organized a program aimed at improving communication
between recruiters and candidates. The program emphasized the need forrecruiters to engage with candidates better by gauging the person’s real intentions
and providing the necessary support. The undertaking proved successful in encouraging franker conversations on the valueof working for the organization in question. Now in its 16th year, Job Study continues to encourage frank engagement withcandidates, and 17 leading companies have signed up to the initiative.
We were proud of what Job Study had achieved over those 16 years. At the same time, we recognized that the employment
system had changed a lot since 2005. Forms of employment were becoming more diverse, fewer Japanese companies
were hiring college graduates in bulk, and the students themselves had more diverse values. In turn, jobseekers andrecruiters were now facing a different set of challenges. Accordingly, Job Study started emphasizing the need to abandon
past practices and identify what must be done to meet the new challenges. Rather than serving as a hiring event, Job Studybrings together the HR brains from the 17 companies to come up with solutions.

Michinoku Future Fund: A scholarship for students left orphaned by the 2011 disaster
Since the year after the Tohoku disaster of March 11, 2011, we have donated toMichinoku Future Fund*, a scholarship program for students who lost their parents
in the disaster.
In 2020, the foundation awarded its ninth annual set of scholarship. Scholarships
were awarded this year to 89 students, securing them a place in a higher or further
education institution, where they can start their journey towards a bright career. In
previous years, sponsors, students, graduates, and foundation staff would gather
at a ceremony held for the benefit of the recipients of the scholarships as well as
The previous year’s (2019) sendoff eventfor scholarship students who were about to graduate. Unfortunately, the pandemic
meant that the ceremony could not take place this time, so we were unable to hearfrom the recipients directly. Ceremony or no ceremony, we remain as committed as ever to supporting the good work of thefoundation.
* Founded by Rohto Pharmaceutical, Calbee, and Kagome, Michinoku Future Fund provides higher or further education scholarships tostudents who lost their parents in the March 2011 disaster, on the belief that future generations are the foundation for the recovery. Since itbegan, Michinoku Future Fund has awarded scholarships to over 900 students.

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KOKUYO Kitakanto Sales becomes official supplier of national sports festivals to be held in
Tochigi
As it did in 2019, KOKUYO Kitakanto Sales provided Tochigi Prefecture with 10
thousand copies of a special Campus notebook featuring an “ichigo” theme.
“Ichigo” is the Japanese word for strawberries, for which Tochigi is famous, and it
also forms part of the name of a local sports event: the “ichigo-ichie” national sports
festival and festival for people with disabilities. In return, the sales company was
listed as official supplier of the upcoming sports festivals (officially, the 77th
National Sports Festival and 22nd National Sports Festival for People with an
Impairment).
As an official supplier, KOKUYO Kitakanto Sales will help promote the sports
festival, ensuring that it is thrilling and memorable event.

The special notebook ties in with theevent. It features two “Tochimaru-kun”
mascots (one for main festival and one forthe festival for people with disabilities) as
well as the festival Japanese slogan:“Dreams create inspiration; inspiration
creates the future.” The reverse side
displays a map of the venue withTochimaru-kuns at different locations.

China: Donation appeal launched on internal social media“Chasing Big Dreams with Small Notebooks!”—This is the name of a community outreach program we started in China in
2014. Each year, staff from our Chinese subsidiaries would visit a school in a disadvantaged area and introduce theschoolchildren to KOKUYO stationery. In 2020, the visit was called off because of the pandemic. However, the subsidiaries
still wanted to do something to support the children, even if remotely. Accordingly, staff used their internal social media
platform to launch an online appeal to donate clothing, books, and other goods. In just a short space of time, a total of 126
items were donated from staff in Shanghai, Beijing, and Shenzhen. The goods have already been delivered to the school.
The appeal page has been made permanent so that staff can donate goods at any time.

Donation page on internal social media

Some of the books and clothes donatedplatform

China: Second-hand computers donated to disadvantaged community
In September 2020, our Chinese subsidiaries donated used computers toschoolchildren in a disadvantaged community (after wiping the data and doing afactory reset). The donations were made as part of a program called “Green IT
Classrooms” run by a Shanghai-based NGO. A total of 125 items (including
monitors) were donated.
Certificate acknowledging donation

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KOKUYO Group CSR Report 2021

Mini Science Centers opened at schools near KOKUYO Camlin’s plants
Science, technology, engineering, and mathematics education (STEM) is important
for all countries. It is a prerequisite for building the capacity in science andtechnology to change society for the better. Improving STEM education is also
necessary for increasing learners’ curiosity about the world, their creativity, andtheir problem-solving abilities.
Our Indian subsidiary, KOKUYO Camlin, has opened mini science centers in four
schools located nearby the company’s three production sites. These centers giveschoolchildren opportunities to encounter science and mathematics and discoverfascinating laws and theories. In 2020, KOKUYO Camlin teamed up with STEM
Learning to equip the centers with effective learning tools.

India: KOKUYO Riddhi donates food to local villagers
In mid-March 2020, as the coronavirus went global, India ordered a nationwide
lockdown. To assist local villagers who were struggling to get enough food,
KOKUYO Riddhi Paper Products prepared at its factory 300 sets of food provisions
consisting of rice, dal, and other items, and donated the food to local villagers via
the Gram Panchayet (village council). In previous years, the subsidiary would
donate notebooks to a local school, but that was unfeasible on this occasion. Still,by acting swiftly amid the unprecedented circumstances, Riddhi made a difference
and the villagers expressed warm words of gratitude.

One of the sets of food

Food being delivered to the villagers

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KOKUYO Group CSR Report 2021

KOKUYO's CSR
Charter
KOKUYO CSR

Corporate Proﬁle
KOKUYO Materiality

KOKUYO's Main
Business Domains
Environment

KOKUYO's Initiatives
and History
SocialInitiatives for Futureand Society

KOKUYO's Various
Initiatives

Introduction of KOKUYO s
Initiatives in 2020

Governance

Third-Party
Assessments

Content Index

Message from the
President

SocialBasic Concepts
With the issues facing society in recent years becoming more diversified and complex, we are striving to create KOKUYOstyle values so that our customers’ work, learning, and living can become more creative and fruitful.

Initiatives in 2020

Solutions for employee safety, workplace flexibility, and the digital workplace
Airtrieve: A conference table that cleans the air of droplets
Airtrieve is a table for conference rooms that absorbs airborne droplets generated
by sneezing, coughing, or speaking, and thus stops potentially viral particles
dispersing around the conference room. We accepted the first orders in December
An Airtrieve unit (W4800 series)
2020. Many people in the business world desire face-to-face communication but
are worried about the risk of infection. Airtrieve addresses this concern. It consists an air purifier unit with an electronic air
filter embedded beneath the table surface. At the center of the table surface is an inlet grid, which creates 2.5 meters ofairflow a second to stop exhaled droplets dispersing around the room. The air purifier then filters 15 cubic meters of airflow
every minute (per single air purifier unit). In this way, Airtrieve gives users the assurance that the room has clean and safe
air
Visit the Airtrieve webpage

Work Pod: An assemblable workspace for one
Launched in July 2020, Work Pod provides a well-ventilated enclosed workspacethat provides privacy to workers in open-plan offices or similar environments,
allowing them to videoconference or engage in intense, focused work. Amid
concerns about infection risks, businesses increasingly expect employees to work
remotely and communicate online, but many workers find that background noises
distract them from their work.
There are two Work Pod models, both designed for one person. The first version
has a heat detector and a ventilation unit that replaces the air every 30 seconds.
The second version has an open top. There are also two possible desk arrangements: sofa and desk or work counter. In
each case, Work Pod comes equipped with LED lighting, power supply, and USB charger—all with the PSE mark (certifying
product safety). Work Pod also excels in design. Its glass panels have a liberating feel, its frame harmonizes with the spatial
design, and it has 132 possible combinations of colors and furnishings.
Visit the Work Pod webpage

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KOKUYO Group CSR Report 2021

Simplified face shields made from PET
In July 2020, we sold simplified face shields using Polyethylene Terephthalate(PET), a clear, strong plastic used in our Rail Clear Folder series. We sold twovarieties: a headband face shield and a face shield fitted to a facemask.
To support frontline healthcare workers during the pandemic, we supplied theworkers with some 43 thousand of these face shields. We also supplied some 36
thousand folders from the Rail Clear Folder series for use as substitute faceshields. The materials were all supplied free of charge up until the end of May
2020. People other than healthcare workers expressed an interest in the product,
so we released a commercial version.

Headband face shield

Visit the webpage for the simplified face shields

Solana: An innovative office workstation
In December 2020, we released Solana, an innovative office workstation designed
to meet the needs of the post-pandemic workplace and to provide safety andpeace of mind. Running lengthways along the desk are five grooves into whichusers can slot panels or greenery. By just adding or removing these partitions,users can partition the desk for private work or open it up for group work. The
grooves can also be used to hold smartphones or tablets upright, allowing
employees to perform digital tasks more efficiently. For some desks, the surface iscoated with anti-bacterial and anti-viral materials for added peace of mind.
Visit the Solana webpage

How Solana desks might be arranged in
an officeEnergy Series: A power system that supports the modern digital workplace
In early March 2021, we released the Energy Series—two kinds of portablecharging stations that enable office workers to perform digital tasks in areas with nogrid connection nearby.
Amid the pandemic, office workers increasingly perform their tasks digitally. Theyuse videoconferencing to communicate and interactive displays to collaborate inteam tasks.
However, power can be issue when performing digital tasks in areas of the officethat have no grid connection nearby, such as an office lounge or cafeteria. The
Energy Display Model and Portable
Energy Series solves this problem. The series includes two kinds of portable
Charger in use
charging station (capacity: 540 Wh / 150,000 mAhV): Energy Display Mobile andEnergy Card. Both charging stations enable workers to perform digital tasks for long periods without low-battery anxiety(running times vary depending on the number and types of the connected devices).
Wireless and portable, these Energy Series units give users freedom over where to perform their tasks. Up to four devices
can be plugged into the unit, so multiple digital tasks can be performed simultaneously. The unit itself can be charged when
not in use (such as at night). By removing dependence on grid connections, the Energy Series supports the digital
workplace.
Visit the Energy Series webpage

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KOKUYO Group CSR Report 2021

Working from Home: An exhibition space for home offices at KOKUYO Tokyo
In August 2020, we exhibited a range of home office furniture (desks, tables,
chairs)* at our Tokyo showroom. Our exhibition showcases workspace ideas forliving rooms, studies, and other home environments, to office administrators, HR
professionals, and remote workers.
Visit the KOKUYO Tokyo Showroom webpage*SEQUENCE Height-adjustable desk and table“Working from Home”—home officefurniture displayed at KOKUYO Tokyo
Showroom

UPTIS Tilting desk
FABRE Office chair suited to a living room setting
ing Rocking office chair that lets you exercise while working

Work Transformation: A conceptual handbook for tomorrow’s workplace
On June 15, 2020, we published Work Transformation, a conceptual handbook
about workplace transformation and office designs in the post-pandemic age (suchas an accelerated rise to remote working and a shift to digital work), and one of ourrepresentatives led a webinar to discuss the book’s contents.
Work Transformation outlines our vision for the workplaces of tomorrow. It presents
ideas for supporting workplace transformation and discusses the challenges andbenefits associated with anti-infection measures and workplace building.
As part of our corporate citizenship, we will continue to support the creation of safeand productive office spaces, in addition to protecting employee wellbeing.

WORK TRANSFORMATION
The handbook

Visit the Work Transformation webpage

Partnering with spacemotion to enhance disaster-preparedness in office buildings and mixed-use
buildings
In September, we teamed up with spacemotion to offer disaster-preparedness
solutions that emphasize safety and peace of mind in elevators. These solutions
combine KOKUYO’s elecabi, an elevator cabinet that contains emergency goods
such as water and an emergency toilet kit, with spacemotion’s Ele-Cinema, aprojection mapping system for elevators. By teaming up in this way, we aim toprovide compelling solutions that generate new value for office buildings andmixed-use buildings.

elecabi and Ele-Cinema

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KOKUYO Group CSR Report 2021

Creative stationery and other solutions for modern learning environments

Piiip: A pencil case for showcasing your stationery
On July 8, 2020, we released Piiip, a double pencil case consisting of a transparent
outer case and a non-transparent inner pouch. The front pocket can be used toshow off stylish stationery, while the inner pouch can be used for more specialized
stationery you want to keep hidden from view. The inner pouch has four side
pockets for storing smaller stationery items that can easily get lost among larger
items.
These days, students want their stationery to be more than just functional; theywant it to look good. Students like to show off their stationery to their friends onsocial media or share pictures of themselves studying. This practice can help motivate the students to study harder.
Visit the Piiip webpage

Mark+: Marker pens that have gone viral
In February 2020, we released a Mark+ (pronounced “maaku tasu”), a set of twincolor marker pens. In September that year, we released a second version.
The first version, called the “two tone color marker,” has a double nib at one end of
the pen that lets you add color-differentiated marking to the page. This version was
released at the Bungo Joshi Haku, a big stationery festival in Japan, and it went
viral.
The second version, called “two way color marker,” is a double-ended pen. At one
end is a fine (0.3 mm) nib for writing. At the other is a wide nib for highlighting. You
can write with the fine nib and then use the wide nib to highlight sections of thetext.

Two tone color markers

Visit the Mark+ webpage

Two way color markers

A tablet and PC charging station for schools
In September 2020, we released a tablet and PC charging station for schools to
support the GIGA School Program.* The charging station was designed to support
the rollout of digital technology (use of digital devices on the school’s local area
network) in the classrooms of elementary, junior high, and special-needs schools
across Japan. We offer three versions, each with a different capacity, so schools
can choose the option that best suits class size and other school-specific factors.
All three versions are compact and user friendly. By charging up devices that are
not in use, the charging station supports the digitized classroom of today.
* GIGA stands for Global and Innovation Gateway for All. Launched by Japan’s Ministry ofCharging station: Wheeled unit withcapacity for 44 devices
Education, Culture, Sports, Science and Technology in December 2019, the GIGA School
Program aims to provide one device for every student in compulsory education and to roll out high-speed internet in classrooms.
Visit the webpage for the tablet and PC charging station designed to support the GIGA School Program

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KOKUYO Group CSR Report 2021

New release from Campus series: A folder for class handouts (extra-wide pocket)
On December 9, 2020, we released an extra-wide twin-pocket folder. This folder
provides the elementary students with an easy way to store class handouts,
ensuring that they do not lose or forget any.
Elementary schools are shifting from the blackboard/lecture format toward active
learning. Students now spend less time copying down notes from the blackboard,but on the other hand, they get inundated with handouts to take home. The folder
helps students manage these materials. Its rigid cover prevents the contents from
Campus twin-pocket folder
bending, and the edges have stoppers to prevent the contents from slipping out.
Additionally, the folder comes with a set of stickers that can be used to label the pockets, helping students remember whichmaterials they should hand over to their parents after returning home.
Visit the webpage for the folder

Kaunet: Organizer cases for remote workers and digital nomads
On June 9, 2020, Kaunet launched, as part of its premium series, Kaukore—a lineof organizer cases for remote workers and employees working in a free-addressenvironment. The organizer cases are designed to solve one of the big challenges
faced by such individuals: securing a sufficiently large and tidy space to work.
The case folds open like a book and sits on the desk upright. This gives users asense of their own private space, where they can take out their equipment andfocus on their work. There is also a smartphone stand.
There are two versions of the case: a compact version big enough to store books,
and, for employees working in a free-address environment, a larger version that
can hold a laptop.

View the compact version on Kaunet’s
websiteCompact organizer
Larger version for employees working in a free-address environment

View the larger version on Kaunet’s
websiteOther products and innovations

Black-and-white writing notebook, winner of the KOKUYO Design Awards 2018
On June 25, 2020, we released a notebook, called Notebook for Black and White
Writing, based on a design that was highly commended at the 2018 KOKUYODesign Awards. The notebook has gray paper and you write on it in black or white.
This design achieves an innovative and pleasant notebook by exploiting a visual
quirk—it is hard to read dark and light text simultaneously. The notebook is sold at
Think of Things, a lifestyle shop and café, and on our online store, KOKUYOShowcase. It has made an impact on social media and traditional media.
Read more about Notebook for Black and White Writing

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KOKUYO Group CSR Report 2021

Gender-neutral resume form
Society is placing increasing importance on respect for people’s diverse identities.
Accordingly, on December 23, 2020, we released a resume (rirekisho) form with
one important difference: there is no section for indicating gender. This genderneutral form is intended to increase the options for jobseekers. There are two
versions of the form: a B5 version with three small self-seal envelopes, and an A4
version with three large envelopes that can fit the unfolded form.

Gender-neutral resume form

Visit the webpage for the resume form

LivingAnywhere Work: A business and local government platform for promoting workplace
diversity
In September 2020, we joined LivingAnywhere Work.1 To support a transformation
in workstyles, we communicate with the other members and work with them to testout new workplace sharing and other flexible workplace models.
1 LivingAnywhere Work is a workspace sharing platform based on LivingAnywhere Commons.2
A number of businesses, local governments, and other organizations across Japan have signed
up the platform and provided their premises as shared workspaces.
2 Operated by Lifull, LivingAnywhere Commons is a community of people who want to remove
the constraints of location in work, rest, and play, allowing people to live and work anywhere.

Living Anywhere Work

Visit Living Anywhere Work’s website

Kau-Box: Kaunet’s new showroom
On October 1, 2020, we opened Kau-Box, a Kaunet showroom, on the ground floorof our Shinagawa office. Kau-Box showcases Kaunet’s premium range, Kaukore,
as well as the retailer’s office goods and office furniture. Staff are also on hand toadvise on layout. People are welcome to visit by prior appointment. The Kau-Box
logo conveys Kaunet’s desire to be like a box full of ideas and inspiration.
Visit the Kau-Box website

Better online marketing, better online communication

KOKUYO Workstyle Shop: Our official online shop
On November 30, 2020, we launched KOKUYO Workstyle Shop, a B2C
e-commerce site. The merchandise on the online store consists of around 4,000
items, including big sellers like “ing,” a rocking office chair. This lineup is intended
to add value to customers’ home life by helping them find a healthy balance
between work and play.
Although the products can be used to build a home office for remote work, theyalso enhance home life outside of work. Our aim is to enhance quality of life
through the products and services.

KOKUYO Workstyle Shop

Visit KOKUYO Workstyle Shop91

KOKUYO Group CSR Report 2021

Think of Things: Online shop
On September 29, 2020, we opened an online shop for Think of Things, a lifestyle
shop and café we operate in Harajuku, Tokyo. The online shop has a lineup ofaround 160 items, including original products and KOKUYO’s flagship products.
The website displays product information (size, price, features, background, and soon) in the style of a picture book. We will continue to integrate the online shop withthe offline shop and offer ideas for new ways of living and working.
Visit Think of Things’ online shop

Think of Things’ online shop

A free online business resource added to online community, Soumu no Mori
On August 26, 2020, we launched “business knowhow fount,” a free online
resource offering business advice and resources for SME owners who have limited
sources of support. Linked with Soumu no Mori,* the new site contains articles,interviews, explanations of nomenclature, data, and other useful businessinformation.
SME owners are looking for ways to navigate the prolonged economic contraction
caused by the pandemic. As well as offering such businesses guidance ontransforming working styles, the website provides a free discussion forum in which
members can share business advice or seek advice from one of the resident
business experts. Users can also make use of Kaunet’s new cloud-computing
service (“Kaunet cloud service”) for boosting production and business acumen.
* Soumu no Mori is an online community where office administrators can find solutions for back office admin, including HR, finance, and legal. It
is the largest community of its kind in Japan. Managed by us since 2007, the forum has published around 60 thousand threads about admin. In
addition to its 800 thousand monthly active users, the forum has nearly 500 expert members (including labor and social security attorneys andcertified tax accountants). The site also has an option to search for an expert.
Visit “business knowhow fount”
Visit Soumu no Mori
Visit “Kaunet cloud service”

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KOKUYO Group CSR Report 2021

KOKUYO's CSR
Charter
KOKUYO CSR

Corporate Proﬁle
KOKUYO Materiality

KOKUYO's Main
Business Domains
Environment

KOKUYO's Initiatives
and History
SocialInitiatives for Futureand Society

KOKUYO's Various
Initiatives

Introduction of KOKUYO s
Initiatives in 2020

Governance

Third-Party
Assessments

Content Index

Message from the
President

Governance

Basic Concepts
Operations across our group are governed by a range of regulatory standards, including those related to quality, business
transactions, environmental impact, labor, health & safety, accounting, and tax. To ensure that we always comply with theseregulations and uphold high ethical standards in all our business activities, we have established the KOKUYO Group Codeof Conduct, which all employees are expected to follow. By educating employees in these standards and ensuring that they
uphold them, we are building a compliance culture.
KOKUYO Group Code of Conduct

Systems
Whistleblowing hotline
KOKUYO has a group-wide hotline (the KOKUYO Group Hotline). Employees can use the hotline to raise concerns aboutcompliance 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.

Compliance training
・Workshops and e-learning modules on general compliance・E-learning modules and discussions on preventing bid-rigging
・E-learning modules on the construction industry

Initiatives in 2020
Compliance magazine launched to improve risk awarenessIn December 2020, we launched a compliance magazine (Konpura-magajin) to promote an accurate understanding ofcorporate compliance and improve employees’ awareness of the risks around them. The magazine is published monthly on
our internal portal site and emailed to employees. Each issue contains illustrated articles about incidents and media stories
related to compliance. By raising employees’ risk awareness, the publication serves as a first step for building a workplacein which employees always uphold compliance.

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KOKUYO's CSR
Charter
KOKUYO CSR

Corporate Proﬁle
KOKUYO Materiality

KOKUYO's Main
Business Domains
Environment

KOKUYO's Initiatives
and History
SocialInitiatives for Futureand Society

KOKUYO's Various
Initiatives

Introduction of KOKUYO s
Initiatives in 2020

Governance

Third-Party
Assessments

Content Index

Message from the
President

GovernanceConcepts
The KOKUYO Group took the opportunity of the integration in 2015 to establish an organization and started taking steps topromote risk management. The aim of this activity is to establish a risk management circle from the Group’s point of view.
First, we started with recognizing what kind of risk exists in the entire KOKUYO Group, and considered policies forprioritization and measures from a perspective of what is best for the Group as a whole, and then promoted thesemeasures. We will clarify the particularly important themes or themes related to the entire organization, and aim to improvethe effectiveness and efficiency of risk management by advancing the activity across the entire Group.
Related information: " Related information: Business Risks "Systems
Initiatives regarding management of intellectual property rights
As one of the strategies to differentiate ourselves from competitors, the KOKUYO Group promotes the following initiatives toencourage the acquisition of intellectual property rights, and at the same time, to respect intellectual property rights ofothers:1) Management and operational structure of intellectual property rights
The KOKUYO Group aims to standardize and centralize utilization and strategies for intellectual property rights bycontrolling operations related to the intellectual property rights of subsidiaries and affiliated companies in Japan andoverseas centrally within the intellectual property rights group of the legal department.
The group monitors the products of our competitors on a daily basis for the acquisition of rights in inventions, design, andtrademarks. It also executes thorough preliminary surveys to prevent a violation of the intellectual property rights of others,
and protects our intellectual property rights. In addition, in cases where there is a conflict with competitors, the groupresponds to such a situation through cooperation with the management by taking a rapid and optimal approach forresolution.
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 theintellectual property group establishes and operates the system for research, analysis, and close investigation to prevent
and avoid the violation of rights held by others. In addition, awareness-raising activities for respecting the intellectual
property rights of others and improving awareness of legal compliance are conducted for development departments throughtraining as the necessity arises and as part of daily work.
3) Promotion of creation and utilization of intellectual property rights
The intellectual property group and development departments work closely from the early stage of development to increase
the superiority of the products in the market and focus on creating and discovering inventions that contribute todifferentiation from competitors’ products. We also aim to adhere to Sec. 35 of the Patents Act and establish an incentive
system for employee invention as an internal rule, with the aim of increasing customer satisfaction and encouraging
inventions that strengthen the Group’s development.

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KOKUYO Group CSR Report 2021

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 KOKUYOGroup.
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, andeducation is continually conducted to employees about these regulations and rules.
5) Inspections and improvements are continually conducted on the management system and initiatives related to
information security.

Business continuity planning
We have developed a business continuity plan, which we continually review andrevise as part of a business continuity planning lifecycle. The plan includes
measures for maintaining a stable supply of goods when an emergency disrupts
operations in our plants or offices. Mindful of how severely businesses can beaffected by the increasingly prevalent catastrophic events such as earthquakes,
extreme storms, flooding, fires, and infectious disease, we have reaffirmed theimportance of getting the initial responses right and minimizing the damage fromsuch calamities. Our plan outlines what initial responses to take, and how to follow
them up, in different kinds of disaster/emergency scenarios (including a state of
emergency). Through such planning, we aim to go further in ensuring that every
employee will act swiftly and safely in an emergency to safeguard human life.

Tokyo Fire Department’s earthquake
simulator truck—the truck simulates theseismic intensity (7 on Japan’searthquake intensity scale) of the March2011 earthquake

Initiatives in 2020
Workshop on business continuity planning for stationery businesses
Employees involved in the stationery business attend an annual workshop on
business continuity planning. The workshop is organized by the BCP Promotion
Committee, which has members from seven business units under the Stationery
Business Division. Between June and August, 2020, four workshop sessions were
held, each remotely. The workshop for 2020 focused on the restoration phase andwas designed to clarify the procedures and issues for remote work and enhance
preparedness for dealing with storm and flood damage. Participants reviewed
Workshop held remotely
earthquake, storm, and flood incidents that occurred in the past year and identified
aspects of the business continuity plan to improve. We will continue to update and improve the business continuity plan.

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KOKUYO Group CSR Report 2021

KOKUYO's CSR
Charter
KOKUYO CSR

Corporate Proﬁle
KOKUYO Materiality

KOKUYO's Main
Business Domains
Environment

KOKUYO's Initiatives
and History
SocialInitiatives for Futureand Society

KOKUYO's Various
Initiatives

Introduction of KOKUYO s
Initiatives in 2020

Governance

Third-Party
Assessments

Content Index

Message from the
President

Third-Party Assessments

Rankings and Recognitions

Name of recognition

Date ofannouncement

Results

Sustainalytics ESG Risk Rating

April 2021

Low Risk

Toyo Keizai CSR Ranking (Toyo Keizai Inc.)

March 2021

Overall ranking: 267th

CDP 2020

December 2020

Climate Change B- (Management)
Forests C (Awareness)

MSCI Japan Empowering Women Index(WIN)

December 2020

Selected for inclusion in index

2nd Nikkei SDGs Management Survey(Nikkei Inc.)

November 2020

4th Nikkei Smart Work Management Survey(Nikkei Inc.)

November 2020

FTSE ESG Rating 2020

July 2020

2.4（E:2.8 S:1.7 G:2.9）

MSCI ESG Rating 2020

December 2020

AA

SNAM Sustainability Index (Sompo AssetManagement)

June 2020

Overall score: 167.2 (E:60.6 S:53.3 G:53.3)

S&P/JPX Carbon Efficient Index

June 2020

Decile classification: 9th

Score: 58.4
Grade: 3.5 out of 5
Score: 59.8
Grade: 3.5 out of 5

CSR-related Awards
Recognition as a 2020 Certified Health & Productivity Management Outstanding Organization(White 500) and a 2020 Certified Heath & Productivity Management Outstanding Organization(Large Enterprise Category)On March 2, 2020, KOKUYO and Kaunet became two of the 500 companies listed
as 2020 Certified Health & Productivity Management Outstanding Organization(White 500) by the Ministry of Economy, Trade and Industry and Nippon Kenko Kaigi
in the 2020 Certified Health & Productivity Management Outstanding Organizations
Recognition Program. On the same date, KOKUYO Marketing earned a separate
accolade under the same program (“Health and productivity Management Outstanding Organization”). The program gives
recognition to companies that make exemplary efforts toward a healthy and productive workplace. We will continue such
efforts in line with the KOKUYO Health and Productivity Management Declaration released in October 2019.

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Yui-no-Mori Project wins “sustainability action” commendation
In November 2020, Yui-no-Mori Project, one of our CSR projects, was awarded by
the Ecological Life and Culture Organization. The project earned the organization’s“chairperson prize” in the sustainability action category. The judges were impressedby the fact that the project, in addition to conserving the environment, has an
economic ripple effect in that timber produced from thinning is used as raw
materials in products.
Yui-no-Mori Project
Webpage for Ecological Life and Culture Organization’s sustainability action prize

Prize being awarded

Yui-no-Mori Project receives philanthropy grand prize at Japan Philanthropic Association’s 18th
awardsIn December 2020, the Yui-no-Mori Project received the “philanthropy grand prize”
from the Japan Philanthropic Association at the association’s 18th annual awards.
The Yui-no-Mori Project is a forest conservation project that focuses on forest
thinning and making effective use of the resulting timber. Its aim is to help revivemanmade forests and restore the link between the natural environment and local
livelihoods. The project is a community-based participatory undertaking. For
example, employees involved in design or sales team up with local high school
students to monitor the thinning outcomes. The judges praised the project for how
it aims to create synergy between environmental conservation and local economic
activity.

Prize being awarded

Yui-no-Mori Project
Webpage for Japan Philanthropic Association’s 18th awards

ReEDEN Project earns 2020 Minister of the Environment’s Award for Climate Action
Launched in 2007, the ReEDEN project has for over 10 years contributed to theconservation of reedbeds and served as model for innovative environmental
practice. With a view to continuing the good work of the project and demonstrating
its outcomes, we worked with government to establish a tool for calculating theextent to which the project is facilitating CO2 absorption in reeds. The tool has
been published on Shiga Prefecture’s website.
The project received the 2020 Minister of the Environment’s Award for Climate
Action in recognition of how it contributes to a low-carbon society.
Website for the 2020 Minister of the Environment’s Award for Climate Action
Tool for calculating the extent to which the project is facilitating CO2 absorption in reeds

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Other accolades
Eight products honored in 2020 Good Design Award
Eight of our products were honored in the 2020 Good Design Award. Examples
include a set of twin-color marker pens (Mark+), a series of task chairs (Fabre), anda series of lounge chairs (Settle). One of the eight products earned a place in Good
Design’s Best 100. The product was Stock Stack, a series of horizontally stackablechairs. Stock Stack represents a new addition to Days Office, our office solutions
brand that emphasizes creating comfortable and easily accessible spaces.
Awarded products
Stock Stackstock stack (series of horizontally stackable chairs)
Mark+ (two tone color markers, two-way color markers)
FABRE (task chair series)
SETTLE (lounge chair series)
KATE (light chairs series)
Centura (stadium chair series)
JUKE (shelf series)
dop (solo work booth)

Good Design Award winner: The Roof—a work lounge for a new apartment complex
Another winner of the Good Design Award 2020 was The Roof, a work lounge forapartment complexes that was designed by Yohak Design Studio (our inhouse
design studio) and the Furniture Business Division. One of the very few
architectural designs to be awarded prior to construction, The Roof has garneredinterest within and outside the industry.
The Roof now stands in the grounds of an apartment complex, Renai Yokohama
Totsuka, which itself was completed in in spring 2021. The lounge caters to thework and learning styles of co-working households, whose approach to work has
The Roof
been transformed by the pandemic. It contains a range of spaces, including
reserved booths and areas for relaxing and refreshing, and boasts good network access.
* Yohak Design Studio: The design studio of our inhouse creative team. Located in Harajuku, Tokyo, the studio engages in mold-breaking
creative projects in Japan and overseas. It also plans ideas for and manages two facilities in the same premises: Think of Things (a shop andcafé) and TOT STUDIO (a multiuse space).

Shukudai Yaruki Pen honored in 14th Kids’ Design Award
Shukudai Yaruki Pen, an IoT-powered stationery device that encourages good
homework habits, was honored in the 14th Kids Design Award.* The pen wasawarded in the category for designs that unlock children’s creativity and future
potential. It was commended for its innovative use of IoT to track the student’s
homework efforts and link their efforts with praise from parents. The design process
was praised too.

Shukudai Yaruki Pen and the Kids DesignAward logo

Webpage for Shukudai Yaruki Pen* The Kids Design Award honors products, spaces, undertakings, and research that help solve issues related to children and parenting. To
qualify, the item in question must promote child safety, unlock children’s inner sensibilities and creativity, and contribute toward a family-friendly
society.

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KOKUYO Group CSR Report 2021

Shukudai Yaruki Pen honored in Impress DX Awards 2019
Shukudai Yaruki Pen, the IoT-powered homework aid described above, was also
honored in the Impress DX Awards 2019.* It won the second prize in the edge
computing and devices category. The pen was praised for how it motivates children
and encourages them to maintain good study habits. It was also praised for how it
can contribute to better parent-child relationships by creating opportunities forparental praise.
Webpage for Shukudai Yaruki Pen

Shukudai Yaruki Pen and the Impress DX
Awards logo

* Hosted by Impress, the Impress DX Awards honor ideas, undertakings, products, and services that break the mold and contribute toward abetter future.

Three KOKUYO products chosen for JIDA Design Museum Selection
The Japan Industrial Design Association (JIDA) chose three of our products to add
to the JIDA Design Museum Selection (vol. 22).
The three chosen products
Notebook for Black and White Writing: A notebook with gray paper that you write on it in black or
white
Any: A series of conference chairs suitable for work areas and casual spaces alike
Work Pod: Parts for assembling enclosed and ventilated workspaces that are ideal forvideoconferencing or engaging in intense, focused work.

Notebook for Black and White Writing—one of the three chosen products

Two types of conference chair win the iF Design Award 2020
Two types of conference chair—Any and All in One—were honored in Germany’s
iF Design Award 2020* (Product – Office). The two products were selected fromamong 7,298 candidates from 56 countries.
* Started in 1953 in Germany, the iF Design Award is a world-renowned design competition overhalf a century old.
Any webpage
All in One webpage
Any

All in One

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KOKUYO Group CSR Report 2021

KOKUYO office furniture earns five design awards after being exhibited at Orgatec 2018
We exhibited our office furniture products at Orgatec 2018,* a trade fair for officefurniture held in Germany in October 2018. Our trade fair stand showcased “ing,” a
360 degree gliding chair. The stand earned five prestigious design awards—four
German awards and one Dutch.
The awards were as follows:
1. Frame Award Orgatec (Dutch): Best use of light, trade fair stand of the year
2. iF Design Award (German): Discipline: Interior Architecture
3. German Design Award (German): Excellent Architecture – Fair and Exhibition
4. Red Dot Design Award (German): Brands & Communication Design 2019
5. Iconic Awards (German): Innovative Architecture

Trade fair stand showcasing “ing” chairs

Five inhouse design pieces featured in Graphic Design in Japan
Five design pieces produced by our inhouse designers at Think of Things werefeatured in Graphic Design in Japan, an annual publication of the Japan Graphic
Designers Association—Asia’s largest design organization.
Featured pieces“KOKUYO Standards by Think of Things @ Morioka Shoten” (combined category),
exhibited at Think of Things
Anniversary poster for Think of Things (poster category)
Double page spread in Graphic Design in“Rearrangement of Document Boxes” (general graphics category), exhibited at
Japan showing “KOKUYO Standards by
Takeo Co., Ltd.’s “Ki-Hou-Shi Tactile and Visual”
Think of Things @ Morioka Shoten”“Opening up a new page in Tokyo” (interactive design category), KOKUYO’s official
Tokyo 2020 support webpage“Opening up a new page in Tokyo” (video category), KOKUYO’s official Tokyo 2020 support video

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KOKUYO Group CSR Report 2021

KOKUYO's CSR
Charter
KOKUYO CSR

Corporate Proﬁle
KOKUYO Materiality

KOKUYO's Main
Business Domains
Environment

KOKUYO's Initiatives
and History
SocialInitiatives for Futureand Society

KOKUYO's Various
Initiatives

Introduction of KOKUYO s
Initiatives in 2020

Governance

Third-Party
Assessments

Content Index

Message from the
President

Third-Party Assessments

In August 2020, we conducted a questionnaire survey on KOKUYO CSR activities among general monitors (respondents
recruited from the general public) and business partners. The results are shown below.
The findings from the 2020 survey provided an input for our materiality assessment (find out more on the KOKUYO
Materiality webpage).
We wish to thank the respondents for participating in the survey and contributing valuable insights.

Attributes of survey sample
Number of completed questionnaires included in analysis: 245

Survey results* For each question, respondents selected three responses
Which aspects have caught your attention or left an
impression in you?

Which kind of information needs to be disclosed
better?

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KOKUYO Group CSR Report 2021

Which social/environmental issues do you think we
can make positive contribution to?

102

KOKUYO Group CSR Report 2021

KOKUYO's CSR
Charter

Corporate Proﬁle
KOKUYO Materiality

KOKUYO CSR

KOKUYO's Main
Business Domains
Environment

KOKUYO's Initiatives
and History
SocialInitiatives for Futureand Society

KOKUYO's Various
Initiatives

Introduction of KOKUYO s
Initiatives in 2020

Governance

Third-Party
Assessments

Content Index

Message from the
President

GRI Standards content index

Description

Core
QuestionsStandards

GRI Standards Questions

Page

General Disclosures
102: General Disclosures
○

102-1

Name of the organization

Corporate Data

○

102-2

Activities, brands, products, andservices

Business Overview

○

102-3

Location of headquarters

Corporate Data

○

102-4

Location of operations

Affiliated Companies(Japanese Only)

○

102-5

Ownership and legal form

Corporate Data

○

102-6

Markets served

Business Overview
Corporate Data

1.Organizational
profile○102-7

Scale of the organization

Affiliated Companies(Japanese Only)
Earnings Highlights
Financial Position

2.

○

102-8

Information on employees andother workers

CSR Data: Society

○

102-9

Supply chain

With Business Partners○

102-10Significant changes to theorganization and its supply chain○

102-11

Precautionary Principle orapproach

Employees’ Safety
Risk Managemen○

102-12External initiatives

Commendation and
Recognitions from Outside○

102-13

Membership of associations○

102-14

Statement from senior decision-

103

Message from the President

KOKUYO Group CSR Report 2021

Description

Core
QuestionsStandards

GRI Standards Questions

Page

maker
Strategy102-15○102-163.
Ethics and integrity○

Key impacts, risks, andopportunities

Values, principles, standards, andnorms of behavior

Securities Report p12(Japanese)（572KB）
Business and other risks
Corporate philosophy
KOKUYO's CSR Charter
KOKUYO Group Code of
Conduct

102-17

Mechanisms for advice andconcerns about ethics

Securities Report p27(Japanese)（572KB）

102-18Governance structure

Corporate Governance102-19Delegating authority

102-20Executive-level responsibility foreconomic, environmental, andsocial topics

102-21

Consulting stakeholders on
economic, environmental, andsocial topics

102-22Composition of the highest
governance body and its
committees

Securities Report p25(Japanese)（572KB）

102-23Chair of the highest governancebody

Securities Report p25(Japanese)（572KB）

102-24

Nominating and selecting thehighest governance body102-25

Conflicts of interest

102-26

Role of highest governance bodyin setting purpose, values, andstrategy102-27

Collective knowledge of highest
governance body102-28

Evaluating the highest governancebody's performance102-29Identifying and managing
economic, environmental, andsocial impacts

4.
Governance

104

Securities Report p12(Japanese)、25（572KB）KOKUYO Group CSR Report 2021

Description

Core
QuestionsStandards

GRI Standards Questions

Page

102-30Effectiveness of risk management
processes

102-31

Review of economic,
environmental, and social topics

102-32Highest governance body's role insustainability reporting

102-33

Communicating critical concerns

102-34Nature and total number of criticalconcerns102-35

Remuneration policies

Securities Report p37(Japanese)（572KB）

102-36

Process for determining
remuneration

Securities Report p37(Japanese)（572KB）

102-37

Stakeholders' involvement inremuneration

Securities Report p34(Japanese)（572KB）

102-38Annual total compensation ratio

102-39Percentage increase in annual
total compensation ratio○

102-40

List of stakeholder groups

With Stakeholders○

102-41

Collective bargaining agreements

Securities Report p8(Japanese)（572KB）○

102-42

Identifying and selecting
stakeholders

With Stakeholders
With Stakeholders

5.
Stakeholder
engagement○102-43

Approach to stakeholder
engagement

Dialogue with our Customers
Communication with
Employees
With Business Partners
Social Contribution
CSR Report 2020 Survey
Results

6.
Report○102-44

Key topics and concerns raised

CSR Report 2020 Survey
Results○

102-45

Entities included in the
consolidated financial statements

Securities Report p7(Japanese) （572KB）

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KOKUYO Group CSR Report 2021

Description

Core
QuestionsStandards○

102-46

Defining report content and topic
Boundaries○

102-47

List of material topics○

102-48

Restatements of information○

102-49Changes in reporting○

102-50

Reporting period

CSR Report p2（9.78MB）○

102-51

Date of most recent report

CSR Report p2（9.78MB）○

102-52

Reporting cycle

CSR Report p2（9.78MB）○

102-53

Contact point for questions
regarding the report

For questions regarding thereport, please contact below.

○

102-54Claims of reporting in accordancewith the GRI Standards○

102-55

GRI content index

Content Index○

102-56External assurance

Environmental Management

103-1

Explanation of the material topic
and its Boundary

KOKUYO Materiality

103-2

The management approach and its
components

KOKUYO Materiality

103-3

Evaluation of the management
approach

KOKUYO Materiality

201-1

Direct economic value generated
and distributed

Earnings Highlights

201-2

Financial implications and otherrisks and opportunities due toclimate change

201-3

Defined benefit plan obligations
and other retirement plans

201-4

Financial assistance received fromgovernment

GRI Standards QuestionsPage

KOKUYO Materiality

103: Management Approach

Material topics
200: Economic

201︓
Economic
Performance

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Description

Core
QuestionsStandards

204︓
Procurement
Practices

205︓
Anti-corruption

206︓
Anti-competitive
Behavior

Page

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 andservices 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 aboutanti-corruption policies andprocess

205-3

Confirmed incidents of corruption
and actions taken

206-1

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

301-1

Materials used by weight orvolumeEnvironmental Performance
Data

301-2

Recycled input materials used

Environmental Performance
Data

301-3

Reclaimed products and theirpackaging materials

302-1

Energy consumption within theorganization

Environmental Performance
Data

302-2

Energy consumption outside of theorganization

Environmental Performance
Data

302-3

Energy intensity

Environmental Performance
Data

302-4

Reduction of energy consumption

Environmental Performance
Data

202︓
Market Presence

203︓
Indirect Economic
Impacts

GRI Standards Questions

300: Environment

301︓
Materials

302︓
Energy107

KOKUYO Group CSR Report 2021

Description

303︓
Water

304︓
Biodiversity

305︓
Emissions

Core
QuestionsStandards

GRI Standards Questions

Page

302-5

Reductions in energy requirements
of products and services

303-1

Interactions with water as a sharedresource

303-2

Management of water dischargerelated impacts

303-3

Water withdrawal

Reports by Business Sites

303-4

Water discharge

Reports by Business Sites

303-5

Water consumption

Reports by Business Sites

304-1

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

Yui no Mori

ReEDEN Project304-2

Significant impacts of activities,
products, and services on
biodiversity

304-3

Habitats protected or restored

304-4

IUCN Red List species andnational conservation list species
with habitats in areas affected byoperations

305-1

Direct (Scope 1) GHG emissions

Environmental Performance
Data

305-2

Energy indirect (Scope 2) GHG
emissions

Environmental Performance
Data

305-3

Other indirect (Scope 3) GHG
emissions

Environmental Performance
Data

305-4

GHG emissions intensity

Environmental Performance
Data

305-5

Reduction of GHG emissions

Environmental Performance
Data

305-6

Emissions of ozone-depleting
substances (ODS)

305-7

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

108

Yui no Mori

Environmental Performance
Data

KOKUYO Group CSR Report 2021

Description

306︓
Effluents and Waste

307︓
Environmental
Compliance
308︓
Supplier
Environmental
Assessment

Core
QuestionsStandards

GRI Standards Questions

Page

306-1

Water discharge by quality anddestination

Reports by Business Sites

306-2

Waste by type and disposal
methodEnvironmental Performance
Data

306-3

Significant spills

306-4

Transport of hazardous waste

306-5

Water bodies affected by water
discharges and/or runoff

307-1

Non-compliance withenvironmental laws andregulations

308-1

New suppliers that were screenedusing environmental criteria

308-2

Negative environmental impacts inthe supply chain and actions taken

401-1

New employee hires andemployee turnover

401-2

Benefits provided to full-time
employees that are not provided totemporary 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

403-4

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

Employees’ Safety

403-5

Worker training on occupational
health and safety

Employees’ Safety

Legal Compliance and
Pollution Prevention

400: Social

401︓
Employment

402︓
Labor/Management
Relations403︓
Occupational Healthand Safety

109

CSR Data: Society

CSR Data: Society

Employees’ Safety
Employees’ Health

KOKUYO Group CSR Report 2021

Description

Core
QuestionsStandards

GRI Standards Questions

Page

403-6

Promotion of worker health

Employees’ Health403-7

Prevention and mitigation ofoccupational health and safety
impacts directly linked by business
relationships

Employees’ Health403-8

Workers covered by an
occupational health and safety
management system

Securities Report p8(Japanese)（572KB）

403-9

Work-related injuries

CSR Data: Society

403-10Work-related ill health404-1

Average hours of training per year
per employee

404-2

Programs for upgrading employee
skills and transition assistanceprograms

404-3

Percentage of employees
receiving regular performance andcareer development reviews

405-1

Diversity of governance bodies
and employees

405-2

Ratio of basic salary andremuneration of women to men

406-1

Incidents of discrimination andcorrective actions taken

407︓
Freedom of
Association andCollective
Bargaining

407-1

Operations and suppliers in which
the right to freedom of associationand collective bargaining may be
at risk

408︓
Child Labor

408-1

Operations and suppliers at
significant risk for incidents of childlaborWith Business Partners

409︓Forced orCompulsory Labor

409-1

Operations and suppliers at
significant risk for incidents offorced or compulsory laborWith Business Partners

410︓
Security Practices

410-1

Security personnel trained inhuman rights policies orprocedures

404︓
Training and
Education

405︓
Diversity and Equal
Opportunity

406︓
Non-discrimination

110

Human Resource
Development Program

CSR Data: Society

KOKUYO Group CSR Report 2021

Description
411︓
Rights ofIndigenous Peoples

412︓
Human Rights
Assessment

Core
QuestionsStandards

411-1

Incidents of violations involving
rights of indigenous peoples

412-1

Operations that have been subject
to human rights reviews or impact
assessments

412-2

Employee training on human rights
policies or procedures

412-3

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

413-1

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

413-2

Operations with significant actualand potential negative impacts on
local communities

414-1

New suppliers that were screenedusing social criteria

414-2

Negative social impacts in the
supply chain and actions taken

415-1

Political contributions

413︓
Local Communities

414︓
Supplier Social
Assessment

415︓
Public Policy

GRI Standards Questions

Page

Social Contribution

With Business Partners

Quality Assurance at
KOKUYO Stationery
416-1
416︓
Customer Healthand Safety

417︓
Marketing andLabeling

Assessment of the health andsafety impacts of product andservice categories

Quality Assurance at
KOKUYO Furniture
Kaunet Quality Assurance

416-2

Incidents of non-complianceconcerning the health and safety
impacts of products and services

417-1

Requirements for product andservice information and labeling

417-2

Incidents of non-complianceconcerning product and service
information and labeling111

KOKUYO Group CSR Report 2021

Description

418︓
Customer Privacy

419︓
Socioeconomic
ComplianceCore
QuestionsStandards

GRI Standards Questions

417-3

Incidents of non-complianceconcerning marketing
communications

418-1

Substantiated complaints
regarding concerning breaches ofcustomer privacy and losses ofcustomer data

419-1

Non-compliance with laws andregulations in the social andeconomic area

112

Page

KOKUYO Group CSR Report 2021

ISO26000
Information about issues concerning the following core subjects of ISO26000 can be viewed in the following sections of thisCSR report.
ISO26000
Core Subjects

IssuesOrganizational
governance

Issue 1: Organizational
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 andvulnerable groups
Issue 6: Civil and political rights
Issue 7: Economic, social andcultural rights
Issue 8: Fundamental principles
and rights at work

Page
Message from the President
CSR Management
Corporate Governance and Risk Management
CSR Management
KOKUYO's CSR Charter
KOKUYO Group Code of Conduct
Work Style Reform
Human Resource Development
Employees’ Safety
Employees’ HealthRespect for Human Rights
Basic Framework for Diversity
With Business Partners
CSR Data: Society
KOKUYO's CSR Charter

Labor
practices

Issue 1: Employment andemployment relationships
Issue 2: Conditions of work andsocial protection
Issue 3: Social dialogue
Issue 4: Health and safety atwork
Issue 5: Human development andtraining in the workplace

KOKUYO Group Code of Conduct
Work Style Reform
Human Resources Management
Employees’ Safety
Employees’ HealthRespect for Human Rights
Basic Framework for Diversity
With Business Partners
CSR Data: Society
CSR Management
KOKUYO's CSR Charter

Environment

Issue 1: Prevention of pollution
Issue 2: Sustainable resource

KOKUYO Group Code of Conductuse
Issue 3: Climate change
mitigation and adaptation
Issue 4: Protection of theenvironment, biodiversity
and restoration of natural
habitats

Environmental Management and Third-party Inspection

With Business Partners
Global Warming Preventive Measures
Resource-saving and Recycling Measures
Compliance with the law and the prevention of pollution
Developing Environmentally-friendly Products and Services
Biodiversity/Promoting Environmental Communications
Environmental Performance Data
Reports by Business Site
Yui no Mori

Fair operating
practices

Issue 1: Anti-corruption
Issue 2: Responsible political

CSR Management
System for the Promotion of CSR

113

KOKUYO Group CSR Report 2021

involvement
Issue 3: Fair competition
Issue 4: Promoting social
responsibility in the value
chain
Issue 5: Respect for property
rightsConsumerissuesCommunity
involvement
anddevelopment

Issue 1: Fair marketing, factualand unbiased informationand fair contractual
practices
Issue 2: Protecting consumers'
health and safety
Issue 3: Sustainable consumption
Issue 4: Consumer service,support, and complaintand dispute resolution
Issue 5: Consumer dataprotection and privacy
Issue 6: Access to essential
services
Issue 7: Education andawareness
Issue 1: Community involvement
Issue 2: Education and culture
Issue 3: Employment creationand skills development
Issue 4: Technology development
and access
Issue 5: Wealth and income
creationIssue 6: Health
Issue 7: Social investment

KOKUYO's CSR Charter
KOKUYO Group Code of Conduct
With Business Partners
Corporate Governance and Risk Management

KOKUYO's CSR Charter
Providing Peace of Mind and Safety to Customers
CSR Report 2020 Survey Results
CSR Data: Reflecting the views of customers

KOKUYO's CSR Charter
KOKUYO Group Code of Conduct
New Value Creation
Human Resource Development
Social Contribution
Commendation and Recognitions from Outside
Biodiversity/Promoting Environmental Communications
CSR Data: Society

114

KOKUYO Group CSR Report 2021

2021- 053