https://www.thepack.co.jp/en/

Headquarters

9-3, 2-chome, Higashiobase, Higashinari-ku, Osaka-shi,
Osaka 537-8911, Japan
Tel.: +81-6-4967-1221

Tokyo Head Office

2-8-4 Tomigaya, Shibuya-ku, Tokyo 151-0063, Japan
Tel.: +81-3-3469-1221

Founded1878

Incorporated

May 10, 1952

Capital2,553,505,600 yen

Representative

Hideaki Yamashita, President and CEO

Number of employees 1,183 (consolidated, as of December 2023);
840 (nonconsolidated, as of December 2023)
Annual sales

97.7 billion yen (consolidated, as of December 2023)

Shares traded on

Prime Market, the Tokyo Stock Exchange(securities code: 3950)

Lines of business

Planning, manufacturing, and sale of paper bags,
paper cartons, corrugated boxes,
film packaging, etc.

Offices and Plants

Headquarters: Osaka
Tokyo Head Office: Tokyo
Branches: Hokkaido, Tohoku, Kanto, Yokohama, Nagoya,
Kyoto, Kobe, Okayama, Hiroshima, Shikoku, Fukuoka
Sales offices: Aomori, Niigata, Shizuoka, Kanazawa,
Matsumoto, Yonago, Takamatsu, Oita, Kumamoto,Kagoshima, Nagasaki, Okinawa
Plants: Osaka, Nara, Tokyo, Ibaraki

Domestic subsidiaries:

Keihin Tokushu Printing Corporation
Nikko Print Corporation
Pack Takeyama Co., Ltd.
Nishinihon Printing Co., Ltd.
Kannaru Printing Co., Ltd.

Overseas subsidiaries:

The Pack America Corporation
The Pack (Shanghai) Corp.
The Pack (Changshu) Co., Ltd.

URL

https://www.thepack.co.jp/en/

Sustainability

https://www.thepack.co.jp/en/sustainability.html

Sustainability Report 2024

E: Environment

The Purpose of The Pack Group’s Existence

Mission to bolster
social prosperity andcreating satisfaction
through packaging

Plastic bags

S: Society

management

Introduction

Sustainable

G: Governance

Editorial Policy/Purpose/Basic Policy of Sustainable Management/Philosophy Structure/Disclosure Structure

Basic Policy of Sustainable Management
As is expressed in The Pack Group’s corporate motto, we are passionate and dedicated to ourpartnerships in all our activities. Furthermore, we pursue sustainable management in keepingwith the purpose of our existence (purpose): to provide packaging solutions to contribute to aprosperous society and bring satisfaction to people. As a company offering total solutions
related to packaging, we help solve the many issues facing our stakeholders through thecreation of new value in packaging, thereby contributing to a prosperous and sustainable
society. To this end, we strive to deliver environmental, social, and economic value that is
unique to The Pack Group, based on sustained growth and the ability to adapt to social change.

Film packaging
Flexible packaging

Paper bags

Philosophy Structure of The Pack Group

Shares of sales
Paper cartons

Other (Supplies, etc.)

Corrugated boxes

Contents
Introduction

01 
02  ­  
03 ­
05 ­

E Environment

10   
12  

15  

   

16    
17   ®  

01

THE PACK CORPORATION Sustainability Report 2024

S Society19 
20   
21   
22  
24  
25 
26   

27  
G Governance28  
29  
30   

Editorial Policy
Starting from this year, the CSR Report has been renamed theSustainability Report. The Sustainability Report has been
prepared to communicate to stakeholders in detail the effortsof The Pack Corporation to realize a sustainable society while
also raising its corporate value.
Period covered by this Report: While this Report basicallycovers the period of FY2023 (January 1 – December 31, 2023),
it includes some information from before and after this period.
Published figures: Totals may not match the sum of individualcomponents due to rounding.
Organization covered by this Report: The Pack Corporation
Section preparing this Report and contact point: IR & Public
Relations Department, The Pack Corporation
Address: 2-8-4 Tomigaya, Shibuya-ku, Tokyo 151-0063, Japan
Tel.: +81-3-3469-1221; fax: +81-3-3469-1353
E-mail: koho@thepack.co.jp

Paper products

14.9%

71.0%

Film packaging(plastic bags,
flexible packaging,film packaging)(Paper bags)

30.3%

FY2023sales

97,714

14.1%(Paper cartons)

25.6%(Corrugated boxes)

million yen

Corporate
motto

Passionate and Dedicated to Our Partnerships
Coined by our founding President Shigenari Morita, who advocatedfor valuing employees as well as customers

Purposeof our existence

Mission to bolster social prosperity and creating satisfaction
through packaging

12.7%

 We value and nurture people.

(Printing)

2.4%

 We seek to accommodate society’s every change.

Corporate Philosophy

 We fulfill our social responsibilities by promoting initiatives

related to the global environment and other issues.

 As a company offering total solutions related to packaging, we seek

to contribute to societal development and to thriving societies.

Disclosure structure
Financial information
 Business Results

Nonfinancial information

Basic Policyof Sustainable Management

 Sustainability Report Briefing Materials on

Business Results Shareholder Bulletins Corporate Governance

Code Initiatives

Materiality(Important Issues)▶ P.05Integrated Report
Annual Securities Report
The Pack Corporate Website

Medium-Term Management Plan

 Contributing to a sustainable society Delivering value from The Pack Group Resolving environmental issues through business activities
 We value and nurture people.
 Building and deepening relationships of trust withbusiness partners and customers
 Contributing to the development and prosperity ofsociety Reinforcing management foundations

 Achievement targets for December 2025
 Growth strategies
 Human capital strategy
 Financial strategies 

THE PACK CORPORATION

Sustainability Report 2024

02

Top Mess age
On this Sustainability Report

we will be able to make progress on creating value over the long term

pursue these efforts in 2024.

while making practical improvements and reaching targets in the

Progress on sustainable management

short term.

Message to stakeholders

Our priorities henceforth will include making progress toward achiev-

Since taking office as President and CEO in March 2022, I’ve tried toing our materiality KPIs and the targets of the medium-term manage-

guide The Pack Group’s management toward sustained growth andment plan. As a first step, we’ve formulated five materiality KPIs, setting

progress in line with our corporate motto, Passionate and Dedicatedspecific targets for reducing CO2 emissions, promoting women in theto Our Partnerships. Amid growing calls for ESG-based management

workplace, and quantifying environmental goals in areas such asaround the world, companies that have pursued profit alone are being

increasing sales of FSC®-certified products and growing The Pack

forced to transform themselves. The environmental (E) and social (S)Forest® Environment Fund and expanding its activities. We have long

components of ESG management can create favorable tailwinds for a

focused on reducing our environmental footprint, a social responsibili-

company like The Pack Group, whose core business involves paper

ty of any manufacturer of paper products. We’ve been developing

products. I see my responsibility as the leader of Group management

eco-friendly products since the 1990s. In recent years, we’ve identified

to be one of realizing long-term growth in corporate value by building

as one of our sales strategies promoting a switch to paper packages ina structure in which sustainability initiatives are linked to core businessgrowth.

Based on our articulated Purpose of a “Mission to bolster social

In 2023, which we consider the starting year of our sustainable

prosperity and creating satisfaction through packaging,” The Pack

management, we laid the foundation for increasing corporate value

companies face demands for greater consideration for the environ-In the process of identifying materiality topics, it became clear

Group plans, manufactures, and sells various packages made to order.

over the long term, chiefly by building a promotion structure andment around the world, we’ve set the targets of increasing sales ofthat our employees represent the driving force behind our growth. We

In recent years, we’ve developed a business model based on providing

enhancing internal permeation of sustainable management. As a first

FSC®-certified products, which are trusted worldwide, and growing

will continue working in various ways to become an organization insolutions to various package-related issues facing our customers, instep, the Sustainable Committee, in which I serve as chairperson, has

our own initiative of The Pack Forest® Environment Fund and expand-which employees can do rewarding work with a sense of keen motiva-

addition to the packages themselves. I believe The Pack Group has

met monthly since April 2023. Its specific agenda includes topics suching its activities as ways to increase our social and economic value.

tion. This includes HR development and improvements in our working

been able to earn the trust of its customers and society by consistently

as managing the progress on projects related to the Task Force on

Among the activities of The Pack Forest® Environment Fund, in 2023 itenvironments. Together with continuing efforts in areas such as

focusing on the production of packages alongside evolving our

Climate-related Financial Disclosures (TCFD) and Carbon Footprint ofadded new forestation sites in cooperation with nonprofits and publictraining on digital transformation (DX) and tiered educational programs,

products and services to meet the needs of the times. Our Purpose

Products (CFP) initiatives, formulating materiality KPIs, promoting

agencies. It continues research on potential new contracted foresta-

we will build a working environment in which diverse human resources

expresses The Pack Group’s history up to this day as well as our reason

understanding of the medium-term management plan at individualtion sites today, as we strive to carry out even more active initiatives

can demonstrate their abilities to the fullest while promoting women infor being, aspects of our organization that will remain unchanged. By

worksites, establishing policies related to the Integrated Report andwhile deepening cooperation with our customers.

the workplace and encouraging men to take childcare leave.

sharing this message among all Group employees, we will strive to

the Sustainability Report, interacting with sustainability rating

While each of the five KPIs concerns matters we’ve been pursuing

While we’re making steady progress toward sustainable manage-

develop and propose packages that reduce the environmental impact

agencies, and expanding the activities of The Pack Forest® Environ-for some time, now that we’ve announced clear deadlines and target

ment, the levels demanded by international ESG rating agencies,of production activities while contributing to solutions to environ-ment Fund.

figures, we will accelerate efforts toward their achievement while

shareholders and investors, customers, and society at large continue

strengthening the promotion structure.

to grow more rigorous. We recognize the need for efforts reflecting an

We also publish , a periodical bulletin intended
to inform all employees about matters such as philosophy and

The current medium-term management plan for the three-yeareven greater sense of urgency. On the topic of governance, we’reStarting with this fiscal year, 2024, we’re publishing the Integrated

policies, company initiatives, and medium- to long-term strategies forperiod from 2023 through 2025 sets the targets of consolidated net

listening to a wide range of views from both inside and outside theReport and the Sustainability Report as two separate reports intended

sustainable management. This bulletin includes surveys used tosales of 107 billion yen, operating income of 8.3 billion yen, ROE of 8%organization, including those of Outside Directors. The Pack Group willto help stakeholders better understand The Pack Group. The Integrat-

gather opinions from the field and to gauge progress on the perme-or more, and ROIC of 8% or more. This plan consists of three maintake action on the opportunities for further evolution that such evalua-

ed Report has been edited mainly from the perspectives of sharehold-ation of sustainable management.

components: a growth strategy, a human capital strategy, and ations, demands, and opinions from outside the organization provide.
We will maintain our aim of achieving long-term growth in corporate

services suited to the coming times.

ers and investors; the Sustainability Report represents a revision of the

While management creates this top-down promotion structure,

financial strategy. Putting each of these strategies into practice will

previous CSR Report to meet the needs of an even broader range of

we believe hints noticed and improvements made by individual

help to achieve our materiality targets. Currently we’re in the process

value through taking to heart our Purpose. We appreciate your contin-

stakeholders. I hope this Report will help readers grasp The Pack

employees at their worksites help realize sustainable management.

of ensuring that all employees understand the plan, as well as theued support of our company.

Group’s philosophy and future potential.

For this reason, we’re seeking to promote an understanding of sustain-

sustainability-related information. While it’s true that as a three-year

ability among all employees and provide each individual with a senseplan the medium-term management plan covers a relatively short

THE PACK CORPORATION Sustainability Report 2024

S: Society

Materiality KPIs and the medium-term
management plan

E: Environment

period from the perspective of sustainable management, we believesolid foundations will strengthen the organization. We will continue toline with the movement toward reducing or eliminating plastic use. As

mental and social issues, as we continue to deliver products and03of participating in management. We’re confident that building such

G: Governance

Evolving tosustainable
management

Introduction

Message from the President

Hideaki Yamashita
President and CEO
The Pack Corporation
THE PACK CORPORATION

Sustainability Report 2024

04

List of Materiality issues organized from an ESG point of view

A set of Materialities (important issues) was identified by the project

Major themes

members centering on the Sustainable Business Team established inMateriality (Important Issues)

January 2022. In July 2022, the Materialities were approved by theInitiatives

 Developing, procuring, and supplying eco-friendly raw materials,

Board of Directors and finalized.

Promoting eco-friendly productplanning and technologicaldevelopment

In September 2023, we established five materiality KPIs. We arepromoting initiatives intended to achieve these KPIs by FY2030. We
will strive toward sustained growth in corporate value by checking

including forestry-certified and mixed paper Proposing packaging that requires reduced volumes of raw
materials
 Proposing solutions to improve work efficiency through use of our
packaging

Association with SDGs

 Proposing alternative surface processing technologies to replace

plastic laminates Developing alternative paper packaging to replace plastic

packaging Developing reusable packaging

S: Society

Identification process Developing eco-friendly plastic packaging

progress on, assessing, and updating these materiality issues and KPIs
Theme 01

Step

1

E

Delivering solutions
to environmental issues
through our businessactivities

The project team has at least one individual from each department
responsible for topics such as sales, quality control, finance, legal affairs,
human resources, general affairs, and business strategy. Multiple study
meetings to date have strengthened the understanding of teammembers regarding terminology and sustainable management at othercompanies. Study meetings have also been held for executives topromote their understanding and discussion of initiatives to help build anarrative on sustainable management and value creation as well as
initiatives related to the Task Force on Climate-related Financial
Disclosures (TCFD).
Step

2

Step

3

Contributing to environmental
conservation and preservation

Identifying themes (issues) for maintaining
and growing our management capital anddefining initiatives for each issue

Promoting employee healthand safety

Theme 02

Valuing and nurturing people

Step

05

4

S

5

Theme 03

Building and enhancing
relations of trustwith our business partners
and customers

Theme 04

Contributing to social
development andprosperity

Deciding on materiality topics based on
their importance to stakeholders andto the Company
Submitting the materiality topics throughthe Sustainable Committee to the Boardof Directors for approval

THE PACK CORPORATION Sustainability Report 2024

Developing and cultivating thecapacity to offer total solutions
related to packaging
Promoting diverse work styles
that encourage all employees tothriveWe studied how to maintain and grow management capitalcomprising these six types of capital and identified related issues. We
also defined initiatives for each issue as it relates to the environment,
customers, people and labor, local communities and society, andmanagement.

Step Purifying and reusing water used in manufacturing processes Transitioning to renewable energy Reducing CO emissions (intensity)

 Appropriately managing industrial waste and reducing emissions;2promoting recycling Preserving and restoring forest and mountain areas

 Establishing a new environment fund to support efforts such as the Planting trees with consideration for ecosystems

preservation and restoration of coasts and rivers
 Investing in efforts that contribute to environmental conservationand preservation

Reviewing the value chain and ascertaining
our management capital (strengths)
We examined our value chain in great detail, identifying our uniquequalities and points of differentiation from our competitors.
Based on the findings, we identified our management capital:
financial capital, manufacturing capital, human capital, intellectual
capital, social and relationship capital, and natural capital.

Reducing environmental impact
throughout our businessactivities

G: Governancethrough the plan-do-check-act (PDCA) cycle.

Organizing study meetings held by the
Sustainable Business Team, which is amember of the project team that identifies
materiality topics

Introduction

Materiality

E: Environment

Materiality

Materiality

Co-creating brand value withour customers
Maintaining and improving
quality through joint efforts withbusiness partners
Contributing to developing
future generations and fostering
environmental awareness Maintaining and improving the health of employees and theirfamilies as set forth in the Health and Productivity Management
Declaration
 Implementing safety measures at manufacturing sites

 Improving business efficiency and enhancing proposal capabilities

specialists who support The Pack as a company offering totalsolutions related to packaging
 Developing and utilizing databases on packaging expertise Promoting product development through training sessions in Developing environments for work styles suited to employee

 Developing teleworking environments and adopting Promoting an action plan to empower women in the workplace Developing employee skills and optimizing assignments throughlifestyles

 Designing remuneration schemes to allow employees to work withpeace of mind and other systems to secure post-retirement plans Identifying and analyzing customer issues and providing solutions
 Collecting information on packaging in Japan and overseas andcommunicating market developments and trends

G

Theme 05

Enhancing managementfoundations

Promoting supply chain risk
management

through digital transformation (DX)
which manufacturing sites participate
communication tools
job rotations

 Building a more open human resource evaluation system
 Providing multifaceted proposals on distribution and logistics

solutions to achieve labor savings, automation, and mechanization® Environment
Fund to preserve forests

 Proposing ways to participate in The Pack Forest

 Implementing joint development of production technologies andestablishing mass production in partnership with production
subcontractors
 Improving quality by enhancing quality control structures
 Holding visiting classes for elementary school students
 Participating in educational content (including online) Establishing eco-friendly logistics systems

 Investing in efforts that contribute to the development of future

generations

 Participating in and supporting activities that lead to increased

environmental awarenesspromoting a PAS system

2

 Support for activities that create jobs for people with disabilities and Proposing total solutions that combine packaging with packing andactivities that assist them in becoming self-sufficient and finding
employment
 Supporting activities of children to support environmental
protection

 Improving corporate governance structures

 Implementing fair and objective decision-making processes for Developing packaging in a way that helps to address labor

shortages

logistics equipment

Securing soundness,transparency, and efficiency inmanagement

natural disasters

 Using the Packaging Laboratory to foster an organization of Achieving labor savings, automation, and reduced CO emissions by

Providing solutions toincreasingly diverse social
issues Stockpiling disaster supplies to keep employees safe in the event of

 Disclosing information on the status of initiatives related to all

management appointments

principles of the Corporate Governance Code
 Strengthening management soundness through the C-Line(compliance line as the internal whistleblowing system) Improving the quality of disclosure to shareholders and other Strengthening supply chains that can respond to various

 Enhancing resilience to ensure the appropriate operation of

procurement, production, and sales risks

stakeholders
 Securing diversity among the Board of Directors

business continuity planning Countering information leaks and system failures associated withcybersecurity risks

THE PACK CORPORATION

Sustainability Report 2024

06

A set of Materialities (important issues) was identified in 2022. In September 2023, we established KPIs on five of these materiality issues we deemed
were of particular importance to increasing our social and economic value. We will aim to achieve all five of these KPIs by FY2030.

Major themes

Theme 01
Deliveringsolutionstoenvironmental
issuesthrough ourbusiness
activities

Theme 02
We value andnurturepeople.
Theme 03
Building andenhancing
relations of trustwith ourbusiness
partners andcustomers

Theme
01

Date
established

2019

2020

2021

2022

2023

Target FY forachievement

Promotingeco-friendly
product planningand technologicaldevelopment

Achieving a ratio of sales of
FSC®-certified products
September(paper bags, paper cartons,
2023
corrugated boxes) to total
sales of 50% or higher *1

5.5%

10.8%

13.2%

17.4%

20.2%

FY2030

Reducing
environmental
impactthroughout ourbusiness activities

Reducing CO2 emissions
September(Scopes 1 and 2) by 46% vs.
2023
FY2018 (targeting 8997 t)

6.9%(15,512 t)

10.5%(14,914 t)

10.6%(14,894 t)

7.6%(15,399 t)-0.6%(16,756 t)

FY2030Contributing toenvironmental
conservation andpreservation

Implementing 15 The Pack
Forest® Environment Fund
activities, with 500
participants per year

September
2023

4
160

0
0

0
0

4
111

9
253

FY2030

Promoting diverse
work styles thatencourage all
employees tothriveIncreasing women’s
Septemberpercentage of managers
2023(managers or above) to 15%
or more

3.3%

5.3%

4.9%

6.7%

6.3%

FY2030Co-creating brandvalue with ourcustomers

Earning the support of 300
September
firms for The Pack Forest®
2023*2
Environment Fund

24

Materiality(Important issues)

KPI

Delivering solutions to environmental issues through our business activities

Promoting eco-friendly product planningand technological development

Reducing environmental impact throughout ourbusiness activities

FSC®-certified products (paper bags, paper cartons, corrugatedboxes) as a percentage of total sales
 Enhancing proposals to switch to paper packages
 Expanding range of FSC®-certified suppliers Accelerating development of new materials and products using
paper-based materials

CO2 emissions (Scopes 1 and 2)
 Switching to highly energy-efficient machinery Switching electricity use to renewables (including purchase of renewableenergy) Expanding use of solar panels

2023

20.2%

50 %

46% reduction

2023

2030 target

16,756 t-CO
16,662 t-CO

22030 target

2018

2

S: Society

Action plan

8,997 t-CO

2

G: GovernanceMateriality KPIs

E: Environment

Introduction

Materiality

Contributing to environmental conservation and preservation

44

67

94

123

Annual activities of The Pack Forest® Environment Fund
 Increasing the potential number of activities through newdevelopment of activity sites

2030 target

FY20302023

9 times

15 times

Participants in The Pack Forest® Environment Fund activities
 Enhancing activities to raise awareness among local residents and seeking

participants from the general public (posting posters in EDION shops inHiroshima and Nara and enlisting participation on bulletin boards)
 Enhancing activities to which customers are invited2030 target

2023

253 persons

500 persons*1 Sales: The Pack (nonconsolidated) paper products business as a whole (FSC® C020517) *2 Number of companies with sales results

KPI management
The Sustainable Committee and the Sustainable Committee

Plan

Secretariat, its executive arm, set and manage materiality KPIs. The

Setting and updating KPIs

Sustainable Committee Secretariat reports every half-year to the
Sustainable Committee on progress toward the KPIs, ascertained inpartnership with Business Units and Group companies. In addition, it
assesses results each year, proposes improvements for the following
year, and sets new KPIs and updates existing ones.
The Sustainable Committee works together with the Conferenceof Business Divisions to promote practical efforts targeting the KPIs in

Theme
02

ActionDo

Assessing results,
proposing improvements
for the following year,
and setting new KPIs andupdating existing ones

Promoting and executing
measures to achieve the KPIs

individual business sections.
Each business section employs the plan-do-check-act (PDCA)
cycle to improve productivity across the organization and strives toachieve the KPIs.
A management structure has been established to promote andCheck
Promoting and checking on
progress toward the KPIs

Valuing and nurturing people

Promoting diverse work styles that encourage
all employees to thrive

Women as a percentage of managerial positions (managers or above) Targeting a percentage of at least 35% of new graduate hires being
women Developing programs and environments in which women can continue
their careers over the long term

2023

6.3%

2030 target

15 % or more

Theme
03

Building and enhancing relationsof trust with our business partners
and customers

Co-creating brand value with our customers
Companies participating in The Pack Forest® Environment Fund
 Seeking support by enhancing tools for raising awareness of activities2023

123 companies

2030 target

300

companies

monitor progress toward the KPIs, striving toward fair assessment of
individual business sections.

07

THE PACK CORPORATION Sustainability Report 2024

THE PACK CORPORATION

Sustainability Report 2024

08

Introduction

E

Striving to reduce environmental impact

Environment

Resolving environmental issues
through business activities

Also known as the CO2 emissions coefficient, CO2 emissions intensity refers to the volume of CO2 emitted from a fixed amount of business activities.
We calculate CO2 emissions intensity by dividing CO2 emissions converted from electricity, natural gas, and other energy needed in manufacturing
using fixed coefficients by plant processing volume. This is used as a general indicator of energy conservation because it is unaffected by changes insales or production volume.

E: Environment

CO2 emissions intensity

Theme 01

Four plants (per yen of processing)

We will work to protect ourirreplaceable environment and broadly
contribute to society out of our deep
respect for people and nature as wellto inspire future generations.

1. We will promote the development of safe, environmentally friendly products andtechnologies.
2. We will utilize resources and energy efficiently and work to minimize and recycle waste.
3. We will pursue customer satisfaction through environmental activities.
4. We will actively participate in local and national environmental protection campaigns.

Environmental management organization (ISO14001)

Person responsiblefor internal audits

Person responsiblefor internal audits
Person responsiblefor internal audits

1.85

1.80

2018

2019

0

FY2023
TargetGrowing sales ofGrowing sales of Forest Products

Forest Products*1

by 20% or more vs. 2022 *2

Headquarters

Growing sales of

Increasing sales of FSC®-certified

and sales group

FSC®-certified products

products by +30% vs. 2022*2

Forest conservation

Implementing forest conservation

activities

activities 10 times

Ibaraki Plant
Tokyo Plant
Nara Plant

Energy conservation
Energy conservation

2020

2021

2022

1.68

2023

striving to reduce industrial waste and increase recycling rates.
While processing volume increased in FY2023, we were able to improve CO2 emissions intensity by improving plant efficiency.
Although industrial waste emissions decreased, the recycling rate was 98.2%.

Electricity use+

Total for all four plants

Headquarters and sales
as a whole

Reducing CO2 intensity:
Reductions to below actual 2022 figures

Reducing CO2 intensity:
Reducing by 27% vs. 2012
Reducing CO2 intensity:
Reductions of 1% vs. 2022*2=

Companywide

25,726 thousand kWh

23,42924,232

25,741

1,013 thousand kWh
776

Measures

Energy conservation

2.08

The head office, Sales Group, and four plants are striving to conserve energy through means such as adopting high-efficiency equipment. We’re also

Environmental targets (ISO14001)

Osaka Plant

2.02

1.00

22,868Organization

1.99

Promotion office

Logistics sections

Logistics sections

Manufacturing sections

Promotion officeBack-office sections

Logistics sections

Manufacturing sections

Procurement sections

Promotion office

Kyushu sales sections

Chushikoku sales sections

Osaka sales sections

Chubu sales sections

Top management

Person responsiblefor internal audits

Person responsiblefor internal audits

Promotion office

Tokyo sales sections

Top management

Person responsiblefor internal audits

Person responsiblefor internal audits

2.00

Nara Plant

Back-office sections

Top management

Person responsiblefor internal audits

Corporate sections

Tokyo Plant

Manufacturing sections

Top management

3.00

Quantitative changes

Osaka and Ibaraki plants

Back-office sections

Headquarters, procurement, and sales groups(g- CO2/yen)

S: Society

Basic policy o Environmental philosophy n environmental activities

803

23,644

26,739 thousand kWh

26,543802

FY2024
Performance

ResultTarget+22.3%〇

Increasing sales of Forest Products by +20%

+24.0%

×

Increasing sales of FSC®-certified products

10 times*3〇

Implementation of forest conservation activities-11.7%〇-18.8%〇

G: Governance

Environmental philosophy

vs. 2023

2020

2021

2022

2023

2020

2021

2022

2023

2020

2021

2022

2023

* Excludes power generated from solar power
equipment installed by the Company itself.
* Emissions coefficients of individual powercompanies have been standardized to
calculate fluctuations in emissions.
* Includes power used under
renewable-energy plans.

by +30% vs. 2023
10 times

Osaka Plant

Reducing CO2 intensity:
Reduction to below actual 2023 figure

10,33010,400Tokyo Plant

Nara Plant

11,801 thousand kWh
6,993

11,7846,514-32.6%〇

Reducing CO2 intensity:

+3.0%

×

Reducing CO2 intensity:

Ibaraki Plant

8,083 thousand kWh
7,771
3,893

3,446 thousand kWh
3,782

3,716

Reducing by 33.6% vs. 2012
Reductions of 3% vs. 2023

2020

2021

2022

2023

2020

2021

2022

2023

2020

2021

2022

2,213

2023

2020

2,396 thousand kWh
2,405

2,237
2021

2022

2023

*1 Forest Products subject to The Pack Forest® Environment Fund include bagasse, Forest Light, Custard Color, Sugar Brown, biodegradable rope, etc.
*2 Target revised upward in 2023
*3 Including activities canceled due to weather

09

THE PACK CORPORATION Sustainability Report 2024

THE PACK CORPORATION

Sustainability Report 2024

10

Disclosure in accordance with TCFD recommendations

Recycling of industrial waste
Recycling rate (%)

industrial waste from the loss of manufacturing paper and chemical

Volume of industrial waste recycled (t)Recognizing the major impacts climate change would have on the Company and its stakeholders, The Pack has identified reducing environmental* Totals may not match due to rounding ofcomponent figures.

product packaging, and part of the packaging materials that wereused as raw and subsidiary materials are now reused in the market as

99.7

99.7

99.7 98.2%

18,344

17,144 t

impact throughout our business activities as a key materiality issue. The following disclosures reflect Task Force on Climate-Related Financial
Disclosures (TCFD) recommendations. The Pack will strive to provide appropriate disclosure to stakeholders by enhancing the content of disclosure inrecycled packaging materials, etc.
Some industrial waste that cannot be recycled is recycled into

17,592solid fuels and other useful resources.

Final waste
treatment
volumeOsaka Plant
99.1

99.1

Tokyo Plant
99.1

100

95.0%

5,729 5,430 5,605 5,882 t

Final waste
treatment
volume99.9

Nara Plant
99.9

99.9%

2021

2022

2023

2020

2021

2022

2023

53 t

48 t

49 t

308 t

0t

7t

4t

2t

Final waste
treatment
volume17,913

99.9

99.9

99.9

6,998

7,681 7,381

99.9%

99.9

GovernanceRisk management

The Sustainable Committee (chaired by the President and CEO) under

The Sustainable Committee reviews the risks and opportunities

the Board of Directors manages and promotes response to climate

associated with climate change annually, assesses risks and

2020

2021

2022

2023

change. The Sustainable Committee and the Sustainable Committee

opportunities based on various considerations, including their

61 t

63 t

60 t

317 t

Secretariat, its executive arm, in partnership with the Conference of

probability and impact and what recourses are available. In reviewing

Business Divisions, Business Units, and Group companies, ascertain

assessments of risks and opportunities, it refers to various scenariosrisks and opportunities associated with climate change, draft related

provided by organizations such as the International Energy Agency

targets, monitor and assess the state of related efforts, and submit(IEA) and the Intergovernmental Panel on Climate Change (IPCC), andreports and answers to the Board of Directors twice a year on theinterviews related business sections as necessary. Among the risks

results of this process. While the Sustainable Committee meets twiceand opportunities associated with climate change, those consideredannually in principle, it may meet at other times to address mattersto be highly important are reported to the Board of Directors throughIbaraki Plant

4,433 4,845 4,546 4,645 t

2020

addition to further accelerating related initiatives.

99.9

99.9

99.9%

6,239 t
433

388

381

378t

judged by the chairperson to be highly important or urgent.

the Sustainable Committee. The Sustainable Committee drafts

2020

2021

2022

2023

2020

2021

2022

2023

The Board of Directors consults with and supervises the

responses to risks and opportunities and manages the progress

7t

7t

7t

7t

0t

0t

0t

0t

Sustainable Committee and makes decisions on targets.

thereof in accordance with established guidelines.

Tasked with overseeing the executive organization, theAppropriate management of chemical substances

Sustainable Committee Secretariat reviews anticipated risks andStrategy

opportunities associated with climate change, identifies them and

The Group has considered two scenarios, the 2°C scenario and 4°C

assesses their importance, and reviews their assessments. It also

scenario, for the year 2030, for a scope consisting of The Pack

The chemical substances we use in manufacturing processes are

Thereof (PRTR Act). In addition, in bag and carton production, we areconsiders action plans and response policies and inspects andCorporation. In doing so, it referred to the scenarios of the IEA’s World

suitably managed pursuant to the Act on Confirmation, etc. of

making steady progress on switching to safe adhesives free offollows up on the state of execution periodically.

Energy Outlook, the IPPC’s Shared Socioeconomic Pathways (SSPs)

Release Amounts of Specific Chemical Substances in the

restricted chemical substances. In FY2023, we reduced the volume ofEnvironment and Promotion of Improvements to the Management

substances subject to the PRTR Act by 14%.

Volumes of Type I designated chemical substances under the PRTR Act (total for all four plants)
Subject chemical substances

Material in which included

(t)

2020

2021

2022

2023

TolueneAdhesives

0.8

0.0

0.0

0.0

XyleneAdhesives

0.0

0.0

0.0

0.0

Phthalates

Adhesives

0.2

0.0

0.0

0.0

Boric acid and compounds thereof

Adhesives

1.6

1.6

1.4

1.2

Monochlorobenzene

Adhesives

0.8

0.0

0.0

0.0

Dichloromethane

Offset-printing cleaning solution

0.0

0.0

0.0

0.0

1,2-Dichloropropane

Offset-printing cleaning solution

0.0

0.0

0.0

0.0

3.4

1.6

1.4

1.2

Total

The Conference of Business Divisions consults with theand Representative Concentration Pathways (RCPs) scenarios, andSustainable Committee to share information. Business Units andvarious forecasts and plans issued by the Japanese government andGroup companies implement various measures and provide results

other parties. Analyzing each event along the two axes of probability

and data.

and impact, it assessed business risks and opportunities at three

The Audit and Supervisory Board and the Audit Office provide

E: Environment

to reduce the amount of waste ultimately disposed of. Part of the

S: Society

Total for all four plants

G: Governance

Each plant recycles as much industrial waste as possible in an effort

Introduction

E Environment

levels: high, medium, and low. We will increase the resilience ofbusiness activities by promoting optimal initiatives based on the

supplemental audits related to these initiatives.

important business risks and opportunities clarified through thisBoard of Directors

Inquiries

Auditing

Responses / reporting
Internal
auditing

Sustainable Committee

Audit andSupervisory
Board

process.

Cooperation

Audit Office

Chair: President & CEO

Putting water resources to more effective use
Sustainable Committee
Secretariat

The water used at the Tokyo Plant for washing printing ink, paint, andadhesives in the manufacturing process is recycled using a water

Cooperation Conference ofBusiness
Divisions

treatment facility for use as toilet flushing water. This helps conserve
tap water and counters water shortages by making more effcient use

Instruction

Reportingof our limited water resources.
Business Units and Group companies

11

The Tokyo Plant water treatment facility
THE PACK CORPORATION

Sustainability Report 2024

THE PACK CORPORATION

Sustainability Report 202412

Indicators and targets

Key business risks and opportunities
Potential impact

Business impact

Policy, legal

Opportunities

Reducing CO2 emissions intensity
through the development of efficientlogistics systems

New tax burdens on emissions
expected to be incurred with adoptionof carbon taxes
Emissions intensity expected to be
reduced by making the Company’slogistics systems more efficient in
partnership with leading logistics firms

High

Supply chain CO2 emissions results
We have determined that Scope 3, Category 1 emissions (from purchased products and services) account for 81.7% of total supply chain CO2
Low

Risks

Transitional
Risks Opportunities

Markets

Growing demand
for low carbon products

2°C scenario

Reputation
Acute

Opportunities

Promotion of switchingfrom plastic to paper
products

Opportunities

Increased demand for paper products(bags, cartons)
Risks

Rising cost of used paper and otherrecycling materials

Declining corporate brandvalue due to inadequate
environmental measures

Increasing frequency andscale of weather-related
disasters

Risks

Changes in evaluations bystakeholders

Risks

Suspension of operations due todamage to Company facilities andsupply chains
Inadequate electricity due to growing
numbers of days of fierce heat

Increasing numbers ofdays of fierce heat

Risks

Rising air conditioning and other costs

Chronic

Risks Opportunities

Opportunities

Improved businesssustainability throughenvironmental measures

Achieving differentiation from thecompetition and containing
opportunity loss by ensuring a stablesupply of productsLowemissions. In addition, we will consider ways to reduce total supply chain CO2 emissions.

Emissions by scope
Emissions(t- CO2)

Ratio

Scope 1

5,118

0.7%

Scope 2

11,638

1.6%

Scope 3

693,899

97.7%

Supply chain emissions

710,655

100.0%

Scope

High

Growing consumer movement awayfrom plastic products to more
eco-friendly paper products due toexpanding environmental awarenessHigh

Projections suggest that market prices
of used paper and other materials
would rise as demand for recycling
materials grows, leading to higher
manufacturing costs.

MediumProjections suggest that failure to adapt toclimate change may lead to exclusion frominvestments, chiefly by institutional
investors, and less favorable lending
conditions from financial institutions.

Risks

Physical

Projections suggest that customers
and consumers would move awayfrom existing high carbon products
toward low carbon products.

Increasing demand for low carbon
products (paper products)

Growing demand
for recycling materials

4°C scenario

Declining demand for existing highcarbon products

Category

Emissions(t- CO2)

Share of Scope 3
emissions1

Purchased goods and services

580,43783.6%

215,958

2.3%

3,138

0.5%

27,343

3.9%

937

0.1%

5
6

Business travel

7

Projections suggest that the procurementof raw materials, product deliveries, andother activities may be affected byinterruptions of logistics chains due toweather-related disasters.

8

3

Low

Low

4

349

0.1%

Employee commuting

1,290

0.2%

Upstream leased assets
Downstream transportation anddistribution

—

—

9

5,310

0.8%

10

Processing of sold products

320

0.0%

—

—

58,817

8.5%

13 Downstream leased assets——

14 Franchises——

15 Investments——

693,899

100.0%

11 Use of sold products
End-of-life treatment of

12 sold products

Low

Total Scope 3 emissions

Strengths and initiatives

Stricter regulations governing CO2 emissions
and energy conservation

Growth in demand for low carbon products
Promoting the switch from plastic topaper products• Together with boosting sales of FSC® and other Forest Products, actively proposing and expanding the lineup ofother paper products• Moving ahead with the development of eco-friendly products and proposing their use as substitutes for plastic
products

Increasing the sustainabilityof eco-friendly businesses• Ensuring stable supplies and effective risk management for emergencies through joint efforts with our four
plants in Japan, Group companies, and subcontractor plants• Promoting supply chain resiliency by developing new suppliers and strengthening relations with existing suppliers

Sustainability Report 2024

Supply chain
emissions

710,655

Category 1(purchased products
and services)

Scope 3

97.7%

t-CO2

Category 12(end-of-life treatmentof sold products)

Other categories

4.0%

2023 Scope 3
emissions

8.5%

693,899

Category 4(upstreamtransportation anddistribution)

Category 1(purchased goods
and services)

t-CO2

83.6%

3.9%

Trends in CO2 emissions (Scopes 1 and 2)

Each plant seeks to continue to adopt and deploy more efficient

16,662

14,894
15,39914,914

help curb CO2 emissions.
[Target] By 2030, we hope to reduce CO2 emissions (Scopes 1
and 2) by 46% vs. FY2018.

16,756

15,512in machinery and equipment will continue in 2024 and beyond to• Rebuilding the head office building to make it highly environmentally efficient• Establishing guidelines on adopting machinery and using machinery with a focus on efficiency• Adopting and expanding facilities to reduce environmental impact—for example, by installing solar power• Promoting the development of efficient logistics systems• Promoting contracts for CO2-free electricity from renewables• Considering carbon offsets through the purchase of non-fossil-fuel certificates, etc.

THE PACK CORPORATION

1.6%

CO2 emission reduction target (Scopes 1 and 2)
machinery and equipment in line with related guidelines. Investment

13

0.7%

Low

Strengths and initiatives for addressing major opportunities
Event

Scope 2

Scope 3 emissions categories

Despite the risk of fundraising obstacles,
the impact might be controlled byenhancing disclosure and implementing
measures to adapt to climate change.

Projections suggest that the Company
can differentiate itself from thecompetition by increasing its business
continuity by adapting to climatechange to ensure a stable supply of
products and to avoid shortages.

Scope 1

81.7%

Capital goods
Activities related to fuel andenergy not included in
Scopes 1 and 2
Upstream transportation anddistribution
Waste generated by operations

Projections suggest that growth indemand for electricity due to growing
numbers of days of fierce heat may
threaten business continuity due topower failures and otherconsequences.

E: Environment

Rising business costs, including thecost of fuel and raw materials, due tostricter regulations and carbon taxes

More rigorous CO2 emissions
and energy conservation
regulations

The Pack has established the following indicators and targets. Each business unit will strive to meet these targets under the oversight of the
Sustainable Committee.

Risks

Adopting carbon taxes

Assessment

S: Society

Event

G: Governance

Item

Introduction

E Environment

Scope 2

11,532

Materiality
KPI

Reduced by 46%
vs. FY2018

Scope 2
Scope 2 Scope 2 Scope 2 Scope 2
11,63810,445 9,873 9,851 10,353[Scope 1 and 2 results] In 2023, Scope 1 and Scope 2 emissions

8,997

increased 8.8% year-on-year. We will maintain activities that conserve
energy, including efficiency improvements in manufacturing andlogistics sections.

Scope 1 Scope 1 Scope 1 Scope 1 Scope 1 Scope 1

5,130 5,067 5,041 5,043 5,046 5,118
2018

2019

2020

2021

2022

2023

2030 Target(Unit: t-CO2)

THE PACK CORPORATION

Sustainability Report 2024

14

Demand for environmentally-friendly packaging is growing as we strive to achieve a sustainable society. We conduct research and development ofColumnAward winner in a packaging contest

environmentally-friendly products from the perspectives of materials, design, and technology. Core product development is handled by the

The Japan Packaging Contest is a competition organized by the Japan Packaging Institute to develop and promote Japan’s outstanding packaging and its

Packaging Laboratory and by the Materials Development Section. Packaging Laboratory is engaged in development, mainly in structural design oftechnologies. The best work of the year is determined according to each aspect of the package, including materials, design, and technology This year, we

folding paper cartons and corrugated boxes, in cooperation with the company’s own plants, etc. The Material Development Section conducts

won an award in the wrapping segment for a package that makes marked contributions in areas like more efficient and improved wrapping.

research and development mainly in the field of materials and technology in cooperation with other companies.

E: Environment

Product development structure for environmentally-friendly
products

Introduction

E Environment

New product introduction

Paper multi-bottle packfor Unilever Japan Service

Upgraded toThis package achieved the switch from the existing plastic (plastic bag)

paper package

sustainable

package to a paper package for use in selling bottles of shampoo andDeveloping paper trays
to replace plastic trays

Developing paper food containers
with fog-resistant windows

We’ve developed paper trays to replace the molded plastic trays used

We’ve developed paper food containers with fog-resistant windows

to retain product shapes and prevent crushing. Their special design

to help reduce plastic use. The film window on the upper face of theretains the tray shape by folding along the lines to hold the sides incontainer top features a proprietary antifogging treatment to prevent

position. These products have been developed for markets for snacks

fogging due to temperature difference when a warm food product isand other food products as trays for use with individually wrapped

placed in the container. As an alternative to plastic containers, paper

products.

food containers that make the contents visible will help promote

S: Society

Toiletries wrapping segment award

conditioner as a pair. This award reflects our structural design
capabilities, as we designed a package that combines durability withease of assembly while using a small amount of paper.

switching to paper packages in the growing home meal replacement
and takeout food markets.

Special designuses paper material
to hold product shape

Product featuresand prevent crushing Paper trays can help

reduce plastic use
 Special design holds tray shape Highly cost-effective on initial costs

Developing Craft Barrier Heat-Seal Grade fully
film-free paper-based recyclable film packaging®

Product features
 Paper food

Promoting the switch
to paper packages in thefood products market,
through a proprietary
antifogging
treatment

New package

New highly environmentally efficient head officebuilding completed
In line with our materiality issue of reducing environmental impact

Building evaluations and awards

throughout our business activities, the new head office building Zero-emission building accreditation (ZEB Ready, highest BELS evaluation)
 CASBEE accreditation (CASBEE S Rank [highest evaluation]) CASBEE Wellness Office Rank S (voluntary registration)completed in March 2023 was designed and planned with a focus onenvironmental performance. It achieved a BEI score of 0.43 and ZEB

containers thatmake the contents visible
 Window prevents fogging when a warm food product is placedin the container Eco-friendly product with low plastic content

Ready certification thanks to various efforts, including a natural

FSC -certified products (paper bags, paper cartons, corrugatedboxes) as a percentage of total sales: results and targets

building evaluated highly on both total environmental performance

ventilation system, exterior walls with high thermal insulation, and ahighly efficient air conditioning system. It has also earned a CASBEE S
rank and CASBEE Wellness Office S rank (self registered), as an office®

Previous package

G: GovernanceSee the blog below for more information
about the award-winning package. (Japanese only)
https://www.thepack.co.jp/blog/products/a159

and wellness.
As a result of evaluation of its high level of environmental

As part of the Craft series of paper-based film packaging seeking to

The Pack has earned FSC® Chain-of-Custody certification for paper

performance targeting a decarbonized society, its consideration for

reduce plastic use in film packaging, we’ve developed the fully

and paper products using FSC®-certified materials and managed raw

the surrounding residential neighborhoods, and its workplacefilm-free Craft Barrier® HEAT SEAL GRADE, which has barriermaterials. This means that our customers can use packages made of

comfort, the building won the FY2023 Osaka Environmentallyproperties and is recyclable.

raw materials from properly managed FSC®-certified forests andFriendly Architecture Award in the office category. We will continue

recycled resources. In 2023, we identified achieving a ratio of sales ofstriving to build an environment in which anybody can work

FSC®-certified products (paper bags, paper containers, corrugatedcomfortably while also considering the environment.

Eco-friendly technologies employed Natural ventilation and lighting using eco voids
 Solar panels for power generation
 High-thermal-insulating exterior walls and low-E windows to lessen the air
conditioning burden LED lighting with automatic dimmers using sensors in working spaces
 Air volume of all heat exchangers is controlled in line with changes in number ofpeople in the building (CO2 density)

Efforts to improve productivity
 Reception rooms featuring large monitors
 Layout suited to new workstyles and free-address workspaces, remote work,
paperless work, and online meetings
 Shared spaces to stimulate exchange and dialogue

boxes) to total sales of 50% or more as a materiality KPI. We will fulfill*1

The heat sealantinside the package

our corporate responsibilities to nature and to society through theoffers high barriersales of FSC®-certified products.

properties.

Product features
 Fully film-free Oil repellent with oxygen and vapor barrier properties

Layout suited to new work styles

Outdoor terrace

Materiality
KPI

FSC®-certified products as a percentage of sales

Percentage(%)

THE PACK CORPORATION Sustainability Report 2024

Rooftop solar panels*1 Sales = The Pack paper-products business as a whole (nonconsolidated) Recyclable when clean

15

Natural ventilation and lighting
using Ecovoid

2019

2020

2021

2022

2023

2030
target

5.5

10.8

13.2

17.4

20.2

50%
or moreTHE PACK CORPORATION

Sustainability Report 2024

16

Activities of The Pack Forest® Environment FundIntroduction

E Environment
Activities of The Pack Forest® Environmental Fund in 2023
In 2023, we planned our activities in line with a policy of returning activities to their pre-COVID-19 pandemic state while also focusing on contracting

Participants

Takehara, Hiroshima Prefecture

Tree planting

55

April 2023

Hidaka, Saitama Prefecture

Tree planting

20

3June 2023

Shijonawate, Osaka Prefecture

Thinning

124June 2023

Fujimi, Nagano Prefecture

Tree planting

30

5August 2023

Takehara, Hiroshima Prefecture

Cutting undergrowth22

6

October 2023

Shijonawate, Osaka Prefecture

Thinning

24

7

October 2023

Yoshino, Nara Prefecture

Thinning

428

November 2023

Yoshino, Nara Prefecture (PAL Forest)

Cutting undergrowth, maintenance40

9November 2023

Hidaka, Saitama Prefecture

Cutting undergrowth, maintenance8

Activity period

not just The Pack employees but also customers, public agencies, nonprofits, and the general public. This activity also enables customers using

1

March 2023

eco-friendly products to contribute to forest conservation activities through their packages. In 2023, we identified as materiality KPIs undertaking 15

2

activities/year, with 500 participants, under The Pack Forest® Environment Fund and increasing the number of companies supporting The Pack
Forest® Environment Fund to 300 companies. We remain committed to promoting and expanding these activities while planting trees on even moresites.

The Pack Forest Environment Fund system®

Paper
makersMaterials
makersEco-friendly base paper,
non-wood-based paper, etc.
(e.g., bagasse)

Eco-friendly materials

Eco-friendly products

The Pack

Payment

Customers

Volunteering

Total(e.g., Biodegradable rope)

Volunteering

Donations

Tree planting andforest conservation
activities in Japan

 Participants: 7,328 people Trees planted: 21,906
 CO2 absorbed: 1,973.47 t
Funding activities
Subcontractor nonprofit:
Eco Future Fund (EFF)
http://www.eco-future.net/

Tree-planting sites

The Forest Mark is our original logo for The Pack Forest® Environment

Ninth tree-planting site
in Fujimi, Nagano Prefecture(tree-planting began in June 2023.)

printed on packages certi ed as Forest Products to help customers
inform consumers of their contributions to forest conservation
activities.

New tree planting site: Fujimi, Suwa-gun, Nagano Prefecture

Details of activities
https://www.thepack.co.jp/en/
sustainability/environment/
forest.html

The Pack concluded a contract on its ninth tree planting site to support Nagano Prefecture’s forest
community promotion project. Activities on this 1.8-hectare site, named The Pack Forest Fujiminomori,
will center on planting Japanese larch trees and forest conservation. In the first activity in June 2023, a
total of 30 participants planted 700 Japanese larch trees. Even employee family members, including
preschool children, participated, thanks to the safety of the site’s flat terrain and the ease of planting
using saplings in containers. We will continue to contribute to sustainable forests in cooperation withGroup photo

local residents.

The Forest Mark
Fund and forest conservation and tree-plantingactivities. It can be

253

Results of activities to date(cumulative totals as of December 31, 2023)

The Pack Forest®
Environment Fund

Location

DetailsNo.

engage in joint activities with the nonprofit Eco Future Fund (EFF) To date, we’ve planted trees in nine locations across Japan, with the participation of

E: Environment

people, including customers, participants from university laboratories, and local residents, took part in nine activities during the course of the year.

S: Society

forestry conservation activities. A portion of this fund is allocated to purchasing saplings and other forestation resources. Several times a year wefor new tree planting sites and carrying out initial activities. Thanks also to aggressive recruiting of participants from outside the Group, a total of 253

G: GovernanceWe’ve been developing eco-friendly products since 1993, contributing a portion of our sales to fund forestry conservation activities. In 2000, weestablished The Pack Forest® Environment Fund and launched volunteer activities to plant and thin forested areas. We also contribute funding for

Voice

The day’s activities got off to a pleasant start under a clear blue sky—perfect for the start of activities on a new tree
planting site. The work involved using a special tool to dig a hole in the ground and then planting saplings in containers,
First tree-planting site
Nishiwaga, Iwate Prefecture(tree-planting began in June 2001.)

Sixth tree-planting site
Takatsuki, Osaka Prefecture(tree-planting beganin November 2009.)

Seventh tree-planting site
Hidaka, Saitama Prefecture(tree-planting began in March 2012.)

Fourth tree-planting site
Takehara, Hiroshima Prefecture(tree-planting beganin November 2004.)

Fifth tree-planting site
Kimitsu, Chiba Prefecture(tree-plantingbegan in February 2009.)

small enough to hold in one hand, in the holes. It was a valuable experience to enjoy nature with our children. Given theopportunity, I’d like to participate each year to see how the saplings grow.
The Pack Forest® Environment Fund is a unique initiative carried out for more than 20 years. I think it’s a wonderful activity.

Eighth tree-planting site
Shijonawate, Osaka Prefecture(tree-planting began in June 2016.)
Third tree-planting site
Onna, Okinawa Prefecture(tree-planting began in October 2003.)

Voice of a participant

Second tree-planting site
Yoshino, Nara Prefecture(tree-planting began in March 2002.)

I hope people from across the organization—management to new employees—will take part, while promoting
awareness of this activity outside the Company.

Takumi Tsuji,
Human Resources Department

Trend in activity results
Materiality
KPI

2019

2020*

2021*

2022

2023

2030 target

Annual activities (times)

4

0

0

4

9

15

Annual participants (persons)

160

0

0

111

253

500

THE PACK CORPORATION

Sustainability Report 2024

* Activities cancelled due to the COVID-19 pandemic

17

THE PACK CORPORATION Sustainability Report 202418

We’re promoting a smoking cessation challenge program for the

We ask all employees, including part-time employees, to undergo
annual stress checks. We aim to identify any mental-health concerns
swiftly through analysis of individual groups of employees, inaddition to encouraging eligible persons to receive in-person
guidance from a physician based on the results of their stress checks.

health of employees and their families. At the time of the first survey

Theme 02

in March 2021, 27.1% of all Company employees were smokers, a

We value and nurture people.

(according to the National Health and Nutrition Survey by the

figure much higher than the national adult average of 16.7%
Ministry of Health, Labour and Welfare). The following initiatives were
undertaken by the human resources department, along withthorough promotion of the health insurance society’s smoking
cessation program. The survey carried out in October 2023 showed

Health management

25.5% of employees were smokers, up 1.8 percentage points from theprevious survey, due to a large number of smokers among new hires.

Since announcing our health management plan in March 2017, the Company has implemented initiatives to maintain and promote the health of ouremployees and their families. One benefit of health management is the rise in labor productivity expected as an outcome, which will further
contribute to Company development.

Thorough health checkups and secondary examinations

We work with internal and external organizations, primarily Human
Resources, to implement various measures.
Policy-promoting
departments

External unions, services

Industrial physician
External health-related service provider

Head ofhealth management(President and CEO)Instruction

Reporting

Head of healthmanagement promotion(Corporate general manager)
Reporting and proposals

Instruction
Outsourcing
Provision

Human resources
department
Cooperation

Instruction

Cooperation
ReportingWest Japan Packaging Health Insurance Union

The Pack Corporation

Policy-implementing
departments

Plants andEmployees’ Association
branch sales offices(Wakataka-kai)
Collabo- Administrative personnel
rationOverview of the Certified Health & Productivity
Management Outstanding Organizations
Recognition Program and our ranking
The Certified Health & Productivity Management Outstanding
Organizations Recognition Program is a program that recognizes
major corporations and small and medium-sized enterprises (SMEs)
that practice particularly outstanding health management, throughinitiatives reflecting community health issues and efforts toward
good health as promoted by the Nippon Kenko Kaigi.
Assessment of The Pack’s health management (FY2023 application)
Overall ranking:1901-1950 out of 3520 companies
49.3 1.4 (points from the previous score of 47.9)

Overall assessment:

19

THE PACK CORPORATION Sustainability Report 2024

We will continue encouraging employees to quit smoking.

We will also analyze rates of persons with high stress levels bybusiness site, to contribute to improvements in individual sections.
Stress checks

Subject: all employees

2019

2020

2021

2022

2023

Number undergoingstress checks (persons)

1,295

1,274

1,215

1,206

1,233

Rate of undergoingstress checks (%)

97.0

97.2

97.4

96.9

96.0

Main initiatives① Smoking survey to ascertain current conditions② Encouraging employees to use the health insurance society’s
smoking cessation support program

Encouraging marathon participation
In 2023, we began sponsoring the RUNRUNRUN marathon held inTokyo and Osaka. We recruited prospective runners from among

We provide regular health checkups for all employees, including
part-time employees. The most recent percentages of employees
undergoing these exams, for FY2022, shows that while 100% of
employees underwent regular health checkups, only 33.2% underwent
secondary examinations. More than one quarter of our employees, or
23.6%, underwent secondary examinations. Employees found torequire urgent treatment based on examination results are encouraged
to be examined through letters and telephone calls from public healthnurses with the health insurance society. We will continue to confirm
that employees understand the importance of undergoing secondary
examinations instead of taking checkup results lightly.

Smoking rate over time

* Part-time employees are not included because they may join and leave the company throughout the year.

Under the HR system adopted in 2020, The Pack Group is making progress on developing workplaces in which employees can grow. We will enhance

Regular health checkups

training, support and evaluation programs to support skills development to enable highly motivated employees to perform at their best.

(checkup period: April 1 of year indicated – March 31 of following calendar year)

Subject: all employees

November 2021

Smokers

April 2022

October 2023

Persons%

Persons%

Persons

%

303

24.3

298

23.7

336

25.5

employees and their families. A number of employees ran in the 2023
marathon. We plan to use this marathon to promote health andstimulate communication among employees and their families.

Training and other programs to support skills development

Subject: all employees excluding part-time employees

FY2020

Examined
Unexamined

FY2021

FY2022

Persons%

Persons%

Persons

%

913

100.0

899

100.0

883

100.0

0

0.0

0

0.0

0

0.0

Total

913

100.0

899

100.0

883

100.0

Persons who
underwent secondary
examinations

247

27.1

239

26.6

208

23.6

Secondary examinations
Subject: all employees excluding part-time employees

FY2021%

Persons%

Persons%

Examined

166

67.2

138

57.8

69

33.2

Unexamined

81

32.8

99

41.4

139

66.8

Total

We introduced a new human resources system in 2020 to create a

The talent management system introduced in 2022 centralizes

workplace where people can thrive. In the salary structure, theemployee information, including personal information, skills, pastrequirements for salary increases and promotions have been madepositions, awards received, training completed, HR evaluations, andclearer. We are increasing lifetime annual income by reviewing

management by objectives, to support the appropriate placement

salaries and retirement bene ts for younger employees andand development of human resources. We plan to use this system,

employees who continue to work after retirement. As part of thewhich involves employees enhancing the information in their own

evaluation system, the Human Resources Development Council holds

profiles, as a tool for stimulating internal communication.

evaluations as open and accurate as possible.

FY2022

Persons

Resigned after
being informed

Talent management systemevaluation meetings throughout the company in an effort to make(checkup period: April 1 of year indicated – March 31 of following calendar year)

FY2020Overview of our human resource system

0

0.0

2

0.8

0

0.0

247

100.0

239

100.0

208

100.0

Personnel structure(career-improvement stage)
Wage structure

Health management structure

Introduction

Stress checks

E: Environment

Smoking cessation challenge

S: Society

Society

G: GovernanceS

Action requirements① Levels ② Job skills qualifications③ HR courses ④ Ranks
Training

systemManagement
by objectives
HR Development Conference (MBO)(decisions on treatment)① Raises, promotions ② Bonuses③ Career advancement ④ Reassignment

Operation

HR Development Conference① Basic skills ② Job skills③ Management skills

Based on the results of the performance reviews, talent development
meetings are held throughout the company. At these meetings, weshare information about top talent throughout the company andHR evaluation① Skills evaluation ② Bonus evaluation③ Overall evaluation

discuss ways to evaluate employees fairly and appropriately. It is also
an opportunity to evaluate the management skills of participating
managers.

THE PACK CORPORATION

Sustainability Report 2024

20

Diverse human resources

2019

2020

2021

2022

2023

9

10

9

23

21

Earning
qualifications

Learning

Details

EnglishCourses available at corporate
contract prices (Incentives are paid for
those who meet certain conditions.)

ChineseMicrosoft Office Specialist(MOS: Word, Excel, PowerPoint)
Official Business Skill Test
in Book-keeping, Level 3 or above
Other (those necessary or beneficial toprofessional duties)
Nikkei TEST

Those who pass the qualification
exams are reimbursed the test feesand paid incentives.

Trainees are reimbursed the test fees.

Digital transformation (DX) training

Training on seven types of practices

We provided digital transformation (DX) training as part of our efforts

This training was launched in 2021 to prevent early separation andtoward human resource development under the medium-term

errors and to improve productivity. Its aim is to deepen

management plan’s human capital strategy. The 700 (approximate)communication among generations and different job types and to

trainees consisted of officers, presidents and selected employees ofenable employees to work together while consciously seeking

Group companies, and employees (permanent employees,

win-win relationships.

reemployees, and contracted employees) who work on computers.

The first training sessions were held for those in managerial positions:

The roughly half-year program from June to December consisted of

18 plant forepersons in FY2021, 55 department general managers

assessment testing to visualize DX skills and e-learning to foster a DX

including those from Group companies in FY2022, and 61 section

mindset and improve DX literacy. In 2024, about 130 people chosen

managers in FY2023. In 2023 the training consisted of a two-day

from those who took part in last year’s training will undergo practicalonline training program and a total of 13 topical assignments. Plans

training for use in their own sections’ operations. We will continue tocall for training about 60 additional section managers in 2024.

With an emphasis on human resource development, The Pack maintains comfortable workplaces where diverse human resources can demonstrate
their individuality and abilities. We will continue to respond to changes in society and develop attractive systems.

Promoting women in the workplace

Gender pay gap

We believe that an environment in which women can thrive is

The Pack applies a gender-neutral payroll structure. The key factors

necessary if all employees are to work in comfort. In 2021, based onunderlying the gap between male and female pay are average age,an analysis of various issues related to the creation of working

percentages in managerial positions, and overtime, shift work,

environments where people can comfortably work over the longlate-night work, and other allowances in manufacturing workplaces,

term, we established our targets for the future.

where men make up a large portion of the workforce. To eliminate
this gap, we plan to promote highly capable women to managerial

Action plan on promoting women in the workplace

positions and to increase the percentage of women among new Plan period: April 1, 2021 – March 31, 2026
 Targets:(1) Women accounting for at least 25% of permanent full-time
employees(2) Women accounting for at least 35% of permanent full-time
employees (new graduates) hired(3) Women accounting for at least 10% of managerial personnel(managers and above)

graduate hires for career track positions by emphasizing ability

Voiceregardless of gender.
Women’s pay as a percentage of men’s pay(Figures for each fiscal year are as of December 31)

 Issues and initiatives: One issue we face is the low number of women
personnel. This means that women account for a small percentage ofmanagerial personnel. In addition to hiring based on an awareness ofthe gender of new graduates hired, we plan to implement training onunderstanding the issues of diversity, gender, and systemic bias.

Women as a percentage of permanent full-time employees(Figures for each fiscal year are as of December 31)

accelerate DX promotion in each section.
Voice of a participant in DX training

I completed the DX training program over about a half-year. The program taught me DX literacy and other knowledge andskills. While the training was challenging at times and involved numerous terms with which I was unfamiliar, it also was very
informative. I learned a lot about DX tools such as ChatGpt. It also introduced case studies of DX use at other companies,

75.1

Nonregular workers (%)

63.7

64.5

All workers (%)

55.9

55.8

Notes
Subject period: January 1 – December 31
Regular workers: Permanent full-time employees (including secondees currently posted
outside the organization);
Non regular workers: contracted employees, reemployees, part-time employees
Pay: Includes commuting allowance.

2022

2023

All permanent full-time
employees (persons)

892

881

841

835

840

Comprehensive reduced working hours program

Women permanent
full-time employees(persons)

171

176

167

171

181

This program allows employees whose circumstances involve

Percentage accounted
for by women (%)

19.2

20.0

19.9

20.5

21.5

responsibilities such as caring for children aged three or older,(Figures for each fiscal year are as of December 31)
Ryoji Arai,
Legal Department

The Pack considers its employees to be a vital asset for our businesses. We will develop an environment in which employees can grow by doing

2019

2020

2021

2022

2023

All permanent full-time
employees hired(persons)

39

30

13

20

28

Women permanent
full-time employees
hired (persons)providing long-term care for family members, hospital treatment, or

8

11

6

7

14

Percentage accounted
for by women (%)

20.5

36.7

46.2

35.0

50.0

Women as a percentage of managerial personnel (managers and above)(Figures for each fiscal year are as of December 31)
Materiality
KPI

The Pack performed its first employee engagement survey inThis system was adopted as a benefit for employees in managerial

December 2023. Plans call for analyzing the survey results andpositions and as an incentive toward continuous improvement in

implementing various measures in FY2024, including ones targeted atcorporate value. The aim is to increase engagement while sharing

reducing high stress levels and making work more rewarding.

value with shareholders.

2019

2020

2021

2022

2023

All permanent full-time
employees hired (persons)

213

208

206

209

206

Women permanent
full-time employees
hired (persons)

7

11

10

14

13

Percentage accounted
for by women (%)

staggered working hours. The program was established to support
diverse workstyles based on a comprehensive consideration ofsituations in which standard working hours may pose difficulties.

3.3

5.3

4.9

6.7

6.3

Users (persons)

2019

2020

2021

2022

2023

4

7

10

9

13

The Pack’s own maternity and paternity leave program
Numbers and percentages of employees taking childcare leave(Figures for each fiscal year are as of December 31)
Subject: all employees excluding part-time employees

2030
target
Women

Transfer-restricted share-based incentive system
under the employee stock ownership program

including six-hour working days, seven-hour working days, orUsers of the comprehensive reduced working hours program

rewarding work while sharing a common purpose.

Sustainability Report 2024

74.7

family support to choose from various forms of employment,

Improving employee engagement

THE PACK CORPORATION

Regular workers (%)

2021

workflows from contractual review through conclusion and knowledge sharing among personnel. I hope to use what I

21

2023

2020

Women as a percentage of permanent full-time employees (new graduates) hired

There are many areas in which DX can be used in my own work in the legal affairs department, such as visualization ofEngagement survey

2022

2019

giving me a feel for the DX wave around the world and showing me how DX is essential to corporate growth.

learned in this training program to consider actively adopting DX.

E: Environment

Learning
languages

Subject

S: Society

Number of persons who used the skills-improvement support program (total)

Purposeof support

15%
or higher
Men

To encourage employee self-improvement, we’ve established a skills
improvement support program that provides economic assistancefor activities such as language learning and earning qualifications.
English and Chinese lessons are provided under corporate contracts
with major language schools operating across Japan. Those learning
English also have the option of online lessons.

G: Governance

Skills improvement support program

Number of persons
who used the program(total)Introduction

S Society

Number of
employees taking
childcare leave(persons)
Percentage of
employees taking
childcare leave (%)
Number of employees
taking childbirth andchildcare leave(persons)
Percentage of employees
taking childbirth andchildcare leave (%)

2019

2020

2021

2022

2023

7

11

15

11

10

100.0

100.0

100.0

100.0

100.0

0

0

0

3

10

0

0

0

13.0

40.0

THE PACK CORPORATION

Sustainability Report 2024

22

VoiceIntroductionS

S Society

Society

Voice of an employee who took childcare leave

pregnancy. My superior arranged things so I could complete the transfer of most of my duties about

Theme 03

two months before the due date. That made it possible to await our child’s birth with peace of mind.

Building and deepening a trustful relationshipwith business partners and customers

Since my work in sales normally consists of various duties that depend on individual ability, during thehandover period I shared with my colleagues not just the details of my work but also detailed
information on individual customers as well as my own thinking on sales activities.
I am glad that I was able to share responsibilities with my wife during the challenging period after

E: Environment

I spoke with the Company about taking childcare leave when my wife entered the stable period ofbirth. I am very grateful to the colleagues who supported me during this time. After returning to work, I
realized the importance of sharing work details and thinking with colleagues so that others can take
I understand conditions vary by household and job position, but I do hope more men will actively

Hiromasa Hiratsuka, Tokyo Sales Division No. 5
Leave period taken: 3 months

Quality control

take childcare leave in The Pack.

S: Society

over smoothly if I am incapacitated for any reason.

The Pack has established a quality control organization to ensure high product quality, and performs ongoing training and education and otheractivities related to quality and safety, and considers measures to consider and reflect complaints and irregularities. A quality control supervisory

The Pack’s own maternity and paternity leave program

Technical trainees from Vietnam

In April 2022, we introduced our own maternity and paternity leave

The Technical Internship Program helps human resources fromdeveloping countries to bring back to their home countries the skills
and techniques they have acquired while working in Japan, thus
contributing to the development of their home countries in the
future. With a view to making an international contribution andemploying foreign workers in the future, we have been accepting
Vietnamese technical apprentices since 2019. Currently, the trainees
are making printing boxes at the printing press manufacturing site.
They are enthusiastic about their work, and each of them is working
daily on practical training to achieve their goals.

Trainees(persons)

Employment of those with disabilities

Employment rate of those with disabilities

Employment
rate (%)

23

2019

2020

2021

2022

2023

5

5

10

5

5

Referral employment program

The company opened an office in Kainan City, Wakayama Prefecture,in April 2022 to support the employment of people with disabilities.
A total of six people have started here, who are involved in manual
processing of paper bags and paper containers. We will continue todevelop and improve the working environment so that employees
can work in a safe environment with a sense of satisfaction. In
addition, we will strive for continued employment with thecooperation of support schools in the prefecture.

A Quality Policy
A Quality Policy: Increasing customer satisfaction
through enhanced quality
The Pack strives to improve customer satisfaction by providing safe,

We’ve adopted a referral employment program to hire those referredreliable, high quality products to customers based on effectiveby current and future Company employees. The goal is to hire diverse

product design, development, manufacture, sales, and services,human resources continually on a stable basis.

chiefly for its core business of packaging materials. This Quality Policy
represents the foundations of our quality improvement activities andReturning employees program

the basis of all our initiatives. In addition to meeting the requirementsof laws, regulations, and other rules, we make every effort to ensure

In February 2023, we introduced a program for the re-employment ofthat the entire organization is aware of the importance of satisfying

employees who previously left the Company. This program sets thecustomer requirements.

G: Governance   

  

 







Quality control
supervisory division   

Person responsiblefor quality management  

Person responsiblefor quality management(Figures for each fiscal year are as of December 31)

continue efforts to improve treatment of employees underreemployment, to realize rewarding workplaces.

Person responsiblefor quality management 

Numbers of trainees accepted

Person responsiblefor quality management

through introducing greater variation in bonus evaluations. We will

Top management

evaluations are reflected more directly in bonus amounts paid,

Nara Plant

Top management   

in 2023. Specifically, the system has been improved to one in which

Tokyo Plant

Top management   

adopted in 2020, and the bonus evaluation system was revised later,

Osaka and Ibaraki plants

Top management   

age of 65 years. Its evaluation system is based on the HR system

Headquarters, procurement,
and sales groups  

The Pack has adopted a reemployment system which extends to thecontrol and improve operations. The quality control supervisory division takes the lead in preventing quality deviations and human error.

 

Revisions to bonus evaluations for employees
under reemployment

A quality control organization has been established at four domestic plants and the headquarters, procurement, and sales groups to unify quality

makes it easier for employees to take leave.

Quality control organization chart

addition to parental leave, we have created an environment thatand quality control from the manufacturer’s point of view.

     planned birth date to one day before the child’s second birthday. In

meet customer needs and improve manufacturing workplaces based on the twin perspectives of quality assurance from the buyer’s point of view

days of paid leave in single-day increments from one week before theassurance departments within the quality control supervisory division. We are striving to improve quality from a broad perspective through efforts to 

spouse’s childbirth and childcare, employees are entitled to take 20

This division works with manufacturing quality control sections to improve product quality. In 2023, we established quality control and quality

to make it easier for men to take paternity leave. To support adivision under the direct supervision of the President has been established as an autonomous section in charge of oversight and supervision quality.

Our thinking on quality
The Pack pursues quality to satisfy all our customers. It takes thefollowing three steps to ensure high product quality:• Thinking about quality first in product development and production• Striving to improve customer satisfaction and functionality while
ensuring stable supply• Striving to build, maintain, and improve quality control systems
We also seek to strengthen product quality through ongoing
joint efforts with manufacturing subcontractors. We investigate any
quality deviations discovered and assess their effects on productquality and the scope of such impact, as well as thoroughly
investigating their causes. We identify the underlying causes of such

(Figures for each fiscal year are as of March 31)

goal of allowing former employes to put their experiences with otherissues and take corrective measures to prevent their recurrence. We

2019

2020

2021

2022

2023

employers to use in the Company.

are currently building a structure to facilitate urgent reporting and

1.9

1.8

1.8

1.6

2.1

THE PACK CORPORATION Sustainability Report 2024

immediate information sharing Companywide in response tocomplaints or irregularities involving products already delivered.
THE PACK CORPORATION

Sustainability Report 2024

24

Certification

through each manufacturing process, storage, sale, andThe entire Company has earned ISO 9001 certification to deliver

Internal auditing

As measures to address the issue of overtime restrictions in the

management structures based on a quality management system, we

For internal audits, quality sections undertake careful reviews from antransport using full trailers to improve transport efficiency between

carry out thorough day to day management while also seeking to

independent perspective to provide opportunities to identify issues

plants in eastern and western Japan. With a full trailer, a single driverachieve continuing improvements in quality. In addition, the Osakaand propose improvements on matters that may be easy to overlook

can transport about twice the cargo of a standard Japanese truck.

and Tokyo plants, which produce food packages, have earned FSSC

in self-inspections. (Internal audits were carried out at 40 facilities inResults of this testing showed that large-scale improvements in

22000 international food safety standard certification for their

FY2023.)efficiency can be expected. In the future, we will attempt to put full

Logistics modal shift and full-trailer feasibility testing

consumption.

production of high-quality products and ensuring stable supplies, forWe’ve established a system capable of swift detection andsafety and peace of mind in the food industry. They carry out regularresolution of any quality-related issues among the issues identified,solutions to various issues, such as the workload in preparing to load

operations based on this standard. In addition to regular review by

and proposed improvements.

cargo. We’re also actively pursuing a modal shift using JR rail

external certifying agencies, we’re increasing opportunities for

E: Environment

logistics field beginning in 2024, we carried out feasibility testing oftrailers to practical use through investigation of and providing

S: Society

stable quality on a sustained and sustainable basis. ThroughIntroduction

S Societycontainers as we strive both to improve transport efficiency andquality improvements through proactive internal audits.

Results of 2023 quality activities

Traceability

Seeking to provide products with ever higher levels of quality, The

Our plants undertake the following comprehensive management, in

identified quality improvement months all year long and provide

accordance with management rules and procedures, based on

quality control training and awareness-raising activities fortraceability:

employees. Other activities aimed at increasing customer satisfaction

reduce CO2 emissions in logistics.

Pack implements regular quality improvement activities. We’ve

through higher quality include announcing and thoroughly
holding quality meetings with partner companies.

ZIGQUICK™ tool developed to support
assembly of thin delivery boxes

Automatic packaging system for paper delivery
bags to protect the environment and save labor

Joint quality meetingwith a partner company

We developed the ZIGQUICK™ tool to simplify box assembly in

In joint efforts with machinery manufacturer Y.A.C. Machinery Co.,We also maintain the following systems to swiftly implement

response to growing demand for thin delivery boxes. This addresses

Ltd., we have developed an automatic packaging system for paper

initial response, investigations, and countermeasures in the event of athe need for redelivery and the labor shortfalls at packaging facilities.

delivery bags in response to the shortage of labor in packaging

quality issue:

Made of corrugated cardboard, this tool is lighter and easier tofacilities and to address future environmental needs. By focusing ontransport than traditional ones made of metal or wood and can bematerial structures and machinery design, this system has beenused in safety. We also offer a variable model for which a single unit

designed to enable automatic packaging using paper materials,

can handle thin delivery boxes of multiple sizes.

which previously were difficult to handle in automatic packaging.

 Use of urgent reporting systems for immediate sharing of
information Companywide
 Securing advanced analytical instruments and technologies to
identify causes

These management systems are part of our system forminimizing recalls by making it easy to identify the causes of any

communicating quality-related information, holding seminars, andQuality month lectures

Agenda:Sharing of quality policies, causes of andimprovements for complaints, etc.
Participating companies: 44
Participants: 55 persons

Agenda:Perspectives and courses of action forhigher-quality preventive measures and six
other lectures
Participants: 85 persons

This system, which allows continuous paper packaging simply byplacing the products to be packed on a conveyor belt, controls paper
Variable model
can handle

quality issues discovered in the steps from raw materials acceptance

G: Governance Using traceable raw materials
 Recording and retaining details of individual manufacturing
processes
 Identifying conforming and nonconforming products at eachmanufacturing process, starting from raw materials acceptance

Package development to contribute solutions to social issues

thin delivery boxesof various sizes

use by automatically detecting product length and packaging the
product accordingly. It affixes shipping labels automatically.
This packaging system meets the need for both labor savingsand environmental protection.

Co-creation with customers and partners

Automatic packaging systemfor paper delivery bags

Proposing support for The Pack Forest® Environment Fund
Since 2000, The Pack has contributed a share of some sales of eligible

continue striving to grow the number of supporting firms, as we

products to The Pack Forest® Environment Fund to support forest

co-create brand value and foster environmental awareness in society

conservation activities at nine planting sites across Japan.

through these activities.

*1

Materiality
KPI

In 2023, we identified Earning the support of 300 firms for The
Pack Forest® Environment Fund as a materiality KPI, and through our
packages we are extending the range of contributions to forest
conservation activities together with supporting customers.
In 2023, 123 companies supported the Fund, and 65 customer
personnel participated in the forest conservation activities. We will

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THE PACK CORPORATION

Sustainability Report 2024

Supporting
firms(companies)*2

2019

2020

2021

2022

2023

2030
target

24

44

67

94

123

300

*1 See p. 17 for details of forest conservation activities.
*2 Only companies with actual results are counted.

Simple three-stage box assembly

Features• Remarkably safe and lightweight thanks to corrugated cardboard
materials• A single variable model can be used to assemble boxes of multiple
sizes.
• Highly cost effective

Paper delivery bag

THE PACK CORPORATION

Sustainability Report 2024

26

Governance

Theme 04

Theme 05

Contributing to the development and prosperityof society as a total packaging solutions company

Strengthening governanceSocial contribution activities

E: Environment

Society

IntroductionG

We’re keenly aware of the importance of corporate governance. On that basis, we’re developing structures to improve management efficiency,
establish sound corporate ethics, and monitor management activities to ensure that all these responsibilities are effectively discharged. We’re also
striving to increase corporate value over the medium to long term through proactive efforts to ensure compliance with the Corporate Governance

As a member of the community ourselves, we engage in a wide range of activities to build relationships of trust and to move forward alongside other

S: Society

S

Code.

members of our local communities.

As one initiative targeting the materiality issue of contributing toJapan’s leading manufacturing centers. It produces a wide range ofenvironmental conservation and preservation, we’re currently

products that support society. The city is currently promoting aconsidering social contribution activities to contribute to“Monozukuri no Machi Higashi-Osaka” (“Higashi-Osaka: A City ofpreservation and recovery of coasts and rivers. In 2023, weManufacturing”) program, including hands-on manufacturing classes

participated in a litter collecting project along the Arakawa River onfor elementary-school students, contracted to the nonprofit

an experimental basis. We will maintain an ongoing dialog with

Higashi-Osaka Organization for Region Innovation

nonprofits and other stakeholders toward launching full-scale(https://npo-higashiosaka.org/). We have participated in this program

activities in this area in 2024, as a new social contribution activity.

since it was launched in FY2002, sending employees to 10 or soschools each year to share the enjoyment of manufacturing with thestudents. In 2023, we visited six schools in the city to provide a total

Supporting Table for Twoof 309 students with paper-bag making experience. We will continue

The Table for Two program is organized by the nonprofit Table For

to contribute to the development of future leaders.

Two International (https://jp.tablefor2.org/). Under this program, forResults of this activity to date (cumulative totals through the end of FY2023)

each purchase of an eligible product, 20 yen of the product price isStudent
participants

16,044(15,503 through visiting classes, 541 through watching a video)

G: GovernanceThe city of Higashi-Osaka, where the Osaka Plant is located, is one of

Corporate governance structure
General Meeting of Shareholders
Appointment, dismissal

Appointment, dismissal

Outside Officers’ Conference
Cooperation

Responses

Expressing opinions,
proposalAudit and Supervisory Board

Board of Directors

Oversight
Inquiries
Account
auditing

Responses, reporting
Cooperation

Sustainable Committee
Internal audit
Cooperation

Audit Office

Cooperation
ReportingInstruction

Business auditing

Reportingonimportantmatters

ReportingInstruction and oversighton important policies and proposals

Recommendations

Compliance Committee

Instruction on
policies and measures

Business Units and Group Companies

Compliance guidanceNomination Committee,
Remuneration Committee(optional)

Reporting, recommending
improvements, and disposition

Conference of Business Divisions

Cooperation

Legal Department

Inquiries

Investigation,
instructing improvements
Reporting, consultation

Attorneys

River cleanup

Accounting Auditor

Hands-on manufacturing classes

Convened for deliberationin response to individual
matters

Compliance Officer
Reporting

C-Line Contact
Whistleblowing on
legal/regulatory violations, etc.

donated to paying for school meals for impoverished children
worldwide. These funds provide school meals and support vegetablegardening and productivity improvement programs chiefly in fivecountries in East Africa and Southeast Asia (Kenya, Tanzania, Rwanda,
Uganda, and the Philippines).
We can also add packages to the Table for Two program as
requested by customers.

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THE PACK CORPORATION Sustainability Report 2024

As a company with an Audit and Supervisory Board, we ensure
soundness and transparency in management through oversight ofthe performance of the duties of the Board of Directors byindependent Statutory Auditors and the Audit and Supervisory
Board.
The Board of Directors has nine members, including threeoutside Directors. The Audit and Supervisory Board has four
members, including two outside Statutory Auditors. To ensure
fairness, transparency, and objectivity in procedures related to thenomination of Directors and operating officers and decisions on
matters such as remuneration, we have established the optional
bodies of a Nomination Committee and a Remuneration Committee.

The membership of each committee consists of Directors(including outside Directors, one of whom serves as chairperson)
appointed by resolution of the Board of Directors. These committeesdeliberate on matters related to nomination and remuneration of
Directors as advisory bodies to the Board.
Other efforts whereby we strive to enhance our corporate
governance structure include the addition of an executive officer
system to improve management efficiency and execute businessthrough dynamic decision-making. We have also established a Boardof Outside Officers to allow the exchange of opinions among outside
Directors and outside Statutory Auditors and recommendations to
the Board of Directors, thereby enhancing Board oversight functions.

THE PACK CORPORATION

Sustainability Report 2024

28

Personnel
composition

Nine members(including three
from outside the company)

Four members(including two
from outside the company)

Number ofmeetings held

17 times/year

13 times/year

Contents

Outside Officers’ Conference

Nomination Committee

Remuneration Committee

Deliberations andrecommendations on mattersrelated to the appointment or
dismissal of Directors andCorporate Officers
Five Directors
Three Outside Directors,(including three
two Outside Corporate Auditorsfrom outside the company)

Deliberations and decision
making on matters relating to
the remuneration of Directors
and Corporate Officers

6 times/year

Five Directors(including three
from outside the company)

2 times/year

4 times/year

Appropriate decision-making
Management soundness isWith a majority of independent With a majority of independent
The exchange of informationand management supervision ensured from the perspective of and awareness among
Outside Officers, including the Outside Officers, including theare carried out based on the
full-time Corporate Auditors
Chairperson, the Committee
Chairperson, the Committee
independent Outside Officers
wealth of business experience based on their experience in the provides effective supervision of deliberates on proposals for the deliberates and makes decisionsof Internal Directors in the
Company and from theappointment and removal ofconcerning compensation for
management from an
Company and the objective and objective and professional
Directors and the selection of Directors and Corporate
independent and objective
professional perspectives ofperspectives of Outside
Representative Director andOfficers.
perspective.
Outside Directors.
Corporate Auditors.
Corporate Officers. It also makes
recommendations in responseto requests from the Board.

In January 2023, we established the Sustainable Committee undermeasures and provide results and data. The Audit and Supervisory

the Board of Directors to address efforts to promote sustainable

Board and the Audit Office provide supplemental audits related to

management within the Group.

these initiatives.

Sustainable Committee Secretariat, work with the Conference ofBusiness Divisions, Business Units, and Group companies to advise
and make decisions on the operation and promotion of sustainable
management, the formulation of policies on key issues, managementof the progress of initiatives, and the incorporation of these policies
into the medium-term management plan. The Sustainable
Committee Secretariat promotes action plans and manages KPIs in
collaboration with the Business Units and Group companies.

Sustainable Committee structural chart
Board of Directors
Inquiries

Auditing

Divisions will work with the Sustainable Committee to share
information. Business Units and Group companies implement various

Audit andSupervisory Board

Responses / reporting

Sustainable Committee

Internal
auditing

initiatives regarding the Corporate Governance Code, which
describes the status of corporate governance, on our corporatewebsite. Here you can find information not just on the principles forwhich disclosure is required in the Corporate Governance Report, but

Cooperation

Audit Office

Corporate Governancehttps://www.thepack.co.jp/en/company/corporategovernance.html

initiatives regarding all principles.

Assessment of the efficacy of the Board of Directors
To improve the e cacy of the Board of Directors, we implement annual self-assessment surveys of all Directors and Statutory Auditors.
Questionnaires on the efficacy of the Board of Directors are distributed to all Directors andStatutory Auditors at a Board meeting each December. The efficacy of the Board is analyzed
and assessed based on all answers collected from the completed questionnaires in a Board
meeting in January of the following year. Efforts to make improvements are based on thesefindings.

Response
formatScoring, with spaces for freeform comments

Response
methodNot anonymous

Internal controls
Pursuant to the Companies Act and the Enforcement Regulations to the Companies Act of Japan, we maintain the internal controls systems neededfor efficient management by securing the propriety of business operations and pursuing business appropriately within the Company and at Group
member companies.

Chair: President & CEO
Basic Policy on Internal Controls
https://www.thepack.co.jp/en/company/basicpolicyoninternalcontrols.html

Sustainable Committee Secretariat
Cooperation

The Board of Directors consults with the Sustainable Committee
to set policy and provide oversight. The Conference of Business

Exchange Corporate Governance Report. We also publish ourAssessment
methodSustainable Committee

The Sustainable Committee and its executive body, the

The Company’s corporate governance is described in the Tokyo Stock

E: Environment

Role

Audit and Supervisory Board

Information sharing andMonitoring and supervisingbusiness execution of Directors awareness raising among theand decision-making processes independent Outside Officersof the Board of Directors

G: Governance

Board of Directors
Making decisions on major
management issues andoverseeing the conduct of thebusiness

Conforming to the Corporate Governance Code

S: Society

Activities status of committee

Introduction

G GovernanceInstruction

Conference ofBusiness Divisions

ReportingBusiness Units and Group Companies

Compliance structure
In addition to enhancing internal systems, we respond to legal issues based on consultations with outside advising attorneys as necessary in

Use of independent Outside Directors and Outside Corporate Auditors
The Company has appointed three Outside Directors and two
Outside Corporate Auditors.

Companies Act and the standards of the Tokyo Stock Exchange.
The role of Outside Directors and Outside Corporate Auditors is

All five have no personal, capital, or business relationships withto enhance the effectiveness of corporate governance at ourour Company and are completely independent. The independencecompany by using their expertise and experience to provide

of Outside Directors is in accordance with the requirements of thesupervision and auditing from a neutral standpoint.

Conforming to the Corporate Governance Code
Basic policy on corporate governanceindividual cases. The Legal Department in the Corporate Division strives to enhance structures for management and education regarding matterssuch as laws, regulations, social norms, and contracts with counterparties.

C-Line (internal whistleblowing system)

Protection of personal information

We established the C-Line (Compliance Line) as a contact point for

We have established a Privacy Policy and Guidelines on thewhistleblowing and consultations regarding violations of laws andProtection of Personal Information, which concern matters including

regulations and similar incidents inside the Company. This system is

why and how we use personal information and how personal

intended to ensure fair and sound corporate management by raisinginformation is managed and safeguarded.

awareness of compliance among all employees; preventing
inappropriate actions, such as violations of laws and regulations; andswiftly detecting and rectifying any improprieties or problems.

Compliance training and awareness raising
We draw on the corporate intranet and other means to communicate
information for internal compliance training and to inform employees

929

The Company is strongly aware of the importance of corporate

monitor the proper conduct of management activities and toof legal information. We also strive to provide training on and to raisegovernance and will strive to improve management efficiency andpromptly disclose important information that serves the common

awareness of compliance through training and educational

establish corporate ethics. Our basic policy is to establish a system tointerests of our shareholders.

opportunities, including internal legal courses.

THE PACK CORPORATION Sustainability Report 2024

THE PACK CORPORATION

Sustainability Report 202430