Major Operating Companies and Production Sites (As of March 31, 2016) Group Companies Consolidated subsidiaries Non-consolidated subsidiaries Affiliates Equity-method affiliates Japan 24 69 32 7 North America Australia 3 4 1 1 2 0 2 0 Asia 4 7 3 1 Europe 3 1 1 0 South America 0 2 1 0 Africa 0 0 1 0 Total 38 81 40 10 Production Sites Pulp and Paper Business Paper-Related Business Nippon Paper Industries Co., Ltd. 1 Kushiro Mill 2 Hokkaido Mill (Asahikawa) Nippon Paper Industries Co., Ltd. (Paper-Pak Division) 1 SOKA PAPER-PAK CO., LTD. 3 Hokkaido Mill (Yufutsu) 4 Hokkaido Mill (Shiraoi) 3 5 Akita Mill 4 MIKI PAPER-PAK CO., LTD. ISHIOKA KAKO CO., LTD. 6 Ishinomaki Mill 5 Nakoso Film Co., Ltd. 7 Iwanuma Mill 8 9 Nakoso Mill Ashikaga Mill* 10 Soka Mill* 11 Fuji Mill 12 Otake Mill 13 Iwakuni Mill 14 Yatsushiro Mill 15 Tokyo Mill 16 Kaisei Mill 17 Kyoto Mill 20 Suita Mill 21 Kochi Mill Kitakami Paper Co., Ltd. 22 Ichinoseki Mill 6 Gotsu Mill 7 Iwakuni Mill 8 Higashimatsuyama Mill Yufutsu Mill Nippon Seitai Corporation Koyo Mill Nippon Paper Papylia Co., Ltd. Harada Mill N&E Co., Ltd. Daishowa Uniboard Co., Ltd. 3 Miyagi Mill Location of Production Sites 10 Asahikawa Mill 11 Maebashi Mill 12 Saitama Mill 13 Niigata Mill 10 14 Kyoto Mill 10 15 Kyushu Mill 16 2 2 1 1 4 9 3 4 9 3 Head Office Plant 25 23 25 5 16 5 16 23 26 26 23 Port Angeles Mill Paper Australia Pty Ltd. 24 24 Maryvale 24 Mill Jujo Thermal Oy 13 13 Mill 26 Siam Nippon Industrial Paper Co., Ltd. *R enamed the “Kanto Mill” after an operational consolidation in April 2016. 17 6 15 15 12 6 13 7 12 13 7 20 3 17 2 21 21 14 14 4 Iwaki Mill 2 Akita Jujo Chemicals Co., Ltd. Nippon Paper Industries USA Co., Ltd. 25 Kauttua 1 9 18 19 Nippon Paper Lumber Co., Ltd. Nippon Paper Industries Co., Ltd. (Chemical Division) Nippon Paper Crecia Co., Ltd. EGAWA PAPER-PAK CO., LTD. 2 Wood Products and Construction Related Business Nippon Paper Group Sustainability Report 2016 2 3 20 14 14 11 9 12 1911169 11 18 12 19 16 11 18 22 23 6 23 7 22 3 6 7 3 1 8 5 1 8 5 8 8 2 15 102 1 15 10 1 4 4 Editorial Policy The Nippon Paper Group publishes its sustainability report to provide stakeholders with a broad overview of what we are doing to meet our corporate social responsibilities (CSR). The Group also publishes an annual report to provide information on its financial aspects and results of operations. This report was prepared in accordance with the core option of the fourth update of the GRI Sustainability Reporting Guidelines (G4). Period Covered Fiscal 2015: April 1, 2015–March 31, 2016 Includes information from before April 1, 2015 and after March 31, 2016. Dates are indicated in such cases. Scope of Organizations Covered The reporting entity is Nippon Paper Industries Co., Ltd. Data, however, were compiled as of March 31, 2016 for Nippon Paper Industries Co., Ltd. and all 38 of its consolidated subsidiaries. Scope of Environmental Coverage The scope of the report covers the basic environmental policies, systems, environmental accounting and environment performance and other data for the 19 companies, including 5 non-consolidated subsidiaries with production facilities, named below. All major production locations are included. Consolidated: Nippon Paper Industries Co., Ltd.; Nippon Paper Crecia Co., Ltd.; Nippon Paper Papylia Co., Ltd.; Paper Australia Pty Ltd.; Kitakami Paper Co., Ltd.; Nippon Paper Industries USA Co., Ltd.; Jujo Thermal Oy; Siam Nippon Industrial Paper Co., Ltd.; Nippon Seitai Corporation; Nippon Paper Lumber Co., Ltd.; N&E Co., Ltd.; Daishowa Uniboard Co., Ltd..; Nippon Paper Development Co., Ltd.; GAC CO., LTD. (The contribution to total consolidated sales of the companies listed here was 94%.) (Sales data for trading companies that are members of the Nippon Paper Group and sell products made by the Group to outside buyers are included.) Non-consolidated: SOKA PAPERPAK CO., LTD.; EGAWA PAPERPAK CO., LTD.; MIKI PAPER-PAK CO., LTD.; ISHIOKA KAKO CO., LTD.; Akita Jujo Chemicals Co., Ltd. Referenced Guidelines Reporting Guidelines (2012) of the Ministry of the Environment •Sustainability Reporting Guidelines (Version 4) issued by the Global Reporting Initiative (GRI) •United Nations Global Compact •ISO 26000, etc. •Environmental Nippon Paper Group Sustainability Report 2016 Contents Nippon Paper Group Business Overview 2 Major Operating Companies and Production Sites 4 Editorial Policy 5 Message from the President Business Strategy and CSR Activities • The Sustainable Business Model of a Comprehensive Biomass Enterprise This report includes not only statements of fact and historical data but also plans, forecasts and estimates (forward-looking statements) based on the business plans and policies of the Nippon Paper Group. These forward-looking statements are the result of assumptions or judgments based on currently available information as this report was prepared. It should be noted that forward-looking statements may differ significantly from actual results due to the impacts of a number of important factors. 8 • Business Strategy Aiming to Create New Value 10 • Social Issues and the Nippon Paper Group’s Value Creation Flow 12 • CSR Materiality at the Nippon Paper Group 14 Management Responsibility 15 Group Governance and Information Disclosure / CSR Management / Compliance / Dialogue with Stakeholders* * Includes examples of dialogues with a customer and a chip supplier. Forest Management and Raw Material Procurement Responsibility 25 Environmental Responsibility 33 Responsibility to Customers 51 Human Rights, Employment and Labor Responsibility 57 Responsibility to Communities 65 Policy and Management / Current Status of Raw Materials Procurement / Sustainable Procurement of Raw Materials / Protecting and Nurturing Japan’s Wood Resources / Overseas Afforestation Policy and Management / Climate Change Initiatives / Reduction of Environmental Impacts / Wastepaper Collection and Use / Preserving Biodiversity Policy and Management / Providing Environmentally and Socially Conscious Products Policy and Management / Occupational Safety and Health / Creating Workplaces that Support Diverse Human Resources Disclaimer 6 Policy and Management / Coexistence with Local Communities and Society at Large / Corporate Identity Sharing Outline of the Nippon Paper Group 70 Guideline Comparison Table 72 Third-Party Comments 75 Action in Response to Third-Party Comments 75 Nippon Paper Group Sustainability Report 2016 5
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