August 19, 2024
To the undersigned, Oji Holdings Corporation

Review of Metrics and Targets in CENIBRA
I. Purpose of this Report
This report presents the results of a review of the validity of the metrics and targets set forreforestation activities, the planting of native tree species, and establishment of ecologicalcorridors at CENIBRA, a Brazilian subsidiary that serves as the main timber procurement
source for Oji Holdings.
II. Recognition of Target Project Characteristics
CENIBRA, a company that is part of the Oji Group, produces logs through aﬀorestation
projects and manufactures and sells pulp from those logs. More than 30% of the timber
procured by the Oji Group comes from forests managed by CENIBRA.
CENIBRA is based in the Brazilian state of Minas Gerais and manages approximately
250,000 hectares of land across 54 municipalities in a biome known as the Atlantic Forest.
The Atlantic Forest biome is characterized by signiﬁcant biodiversity and a high percentageof endemic species. In addition, the forests managed by CENIBRA are adjacent to threestate protected areas (Rio Doce State Park, Serra da Candonga State Park, and Rio CorrenteState Park), the South Belo Horizonte Metropolitan Region State Environmental Protected
Area (APA), and 25 municipal protected areas. Within the area managed by CENIBRA, thecompany manages an area of high conservation value, the “Macedonia Farm”. Part of thisarea (560 ha) is recognized by the Brazilian Institute of Environment and Renewable

Natural Resources (IBAMA) as a Private Natural Heritage Reserve (in Portuguese, Reserva

Particular do Patrimônio Natural, or RPPN).

Based on the above information, the target area is recognized as an important site forforest conservation, regeneration and biodiversity maintenance and enhancement.
III. Review Target and Method
Upon receipt of the TNFD Report 2024 from Oji Holdings, Kokusai Kogyo Co., Ltd(hereinafter “KKC”) reviewed its description for adequacy in light of the recommendationsof the TNFD Guidance on the identiﬁcation and assessment of nature-related issues: theLEAP approach Version.1.1 recommendations.
In evaluating the feasibility of the projected ﬁgures and other information in the TNFD
Report 2024, KKC requested additional documents and sought additional explanations asneeded, including evidence and past performance.

IV. Metrics and TargetsUsing two scenarios, Oji Holdings has evaluated the natural conditions, dependencies,
impacts, risks, and opportunities in the target project for the years 2030 and 2050. OjiHoldingsʼ response to the evaluation results is to take the following actionsa) Avoidance
Avoidance of deforestationb) Reduction
Climate change mitigation, the establishment of conservation forests and conservation ofwater sources, the establishment of reservoirs and the hoeing of soil, ﬁre prevention, andcontrol of invasive alien species.
c) Reforestation and restoration
Reforestation, the establishment of green corridors, and the reintroduction of endangeredspeciesd) Transformation
The acquisition of various certiﬁcations, eﬀorts to prepare new regulations, and thedevelopment of monitoring technologies, social activities and communication activities withlocal communities
Taking into account the results of these risk and opportunity assessments, as well as theirsigniﬁcant impact on society, Oji Holdings has established a policy of expanding“reforestation and restoration” activities after implementing “avoidance and reduction” tothe greatest extent possible. Speciﬁcally, it has set three speciﬁc metrics and targets, asfollows.
Metrics
Metric No.1
Metric No.2
Metric No.3

Targets

Duration

Area of natural forest restored on

3,000 ha or

2024 to 2033

CENIBRA's property

more

Number of native tree species planted

500,000 trees

on CENIBRA's property

or moreArea of ecological corridors established3,500 ha oroutside of CENIBRA's property

more2024 to 2033
2024 to 2033

V. Review Results
Based on the aforementioned assumptions, the following review was conducted of themetrics and targets.
The metrics and targets are considered consistent with the recommended target setting
described in TNFD 7.5.2, as they are speciﬁc, measurable, and have a set timeframe.

The following is a summary of the TNFDʼs recommendations for each of the metrics andtargets.
Metric No. 1
3,000 ha is equivalent to 1.2% of the total land owned by CENIBRA. Moreover, based on
CENIBRA's track record of reforestation averaging more than 300 ha per year from 2019 to2023, this is considered an achievable and reasonable target.
Metric No. 2
CENIBRA has planted a total of more than 600,000 native tree species of 40 diﬀerent
types in the past. On the basis of an annual average of more than 50,000 trees between 2019and 2023, this target is considered achievable and reasonable.
It should be added that as many species of local tree species as possible should be used.
Metric No. 3
The area of ecological corridors established outside of CENIBRA's property between 2019and 2023 averaged more than 350 ha per year, this target is considered achievable andreasonable.
VI. Remarks
It is expected that information will be actively disclosed with regard to the relationshipbetween the area of natural forest connections and the area of green corridors, so that thetarget area setting can be objectively evaluated. It is desirable that information be added infuture disclosures on changes in forest distribution resulting from these regeneration andplanting activities.
Finally, based on the results of future monitoring, KKC hopes that the company will not
be satisﬁed with the targets, but rather will also strive for further reforestation andrestoration.
Kokusai Kogyo Co., Ltd. is not involved in any of Oji Holdingsʼ target projects or work
related to TNFD report disclosure. Therefore, the results of this review are reported fromthe standpoint of an independent third party.
Kokusai Kogyo Corporation
Environmental Conservation Department
Ryoichi Tsuruma