-MATERIAL ISSUE 5- CONTRIBUTE TOWARD A SOCIETY THAT COEXISTS WITH NATURE

Measuring environmental impacts

We are developing metrics to measure how well we discharge our responsibility as a company whose businesses use forest resources. The metrics, all describing an aspect of co-existence with nature, include understanding biodiversity, relationship between business and biodiversity, evaluation of raw material risks, and identification of risks to business sites and the surrounding area. With companies increasingly expected to disclose information in line with the Taskforce on Nature-related Financial Disclosures (TNFD), we are also monitoring this trend and working to understand what the requirements are.

KOKUYO Group’s nature conservation efforts

Yui-no-Mori Project

In 2006, we launched a project to conserve a private forest in the Taisho district of Shimanto, Kochi Prefecture, which we named Yui-no-Mori (“linkage forest”). In this project, we thin the forest and make effective use of the resulting timber. Our purpose is to lead the way in reviving manmade forests and restoring the link between the natural environment and local livelihoods. In 2007, the project was certified by the Forest Stewardship Council® (FSC®). Today, Yui-no-Mori has a surface area of 5,430 hectares, and a cumulative area of 1,989 hectares has been thinned. Kochi Prefecture has awarded us the “CO₂ absorption certificate” since 2007. In FY2021, the forest absorbed 4,698 t-CO₂ in that year. The cumulative total (April 2006 to March 2022) stands at 72,089 t-CO₂.

In 2022, Yui-no-Mori earned two accolades, bringing its accolade tally to nine: In January, it won the “grand prize in the conservation in practice category” at the Japan Nature Conservation Award 2022. In May, it won the “excellence award” (Forestry Agency Director-General Award) at Forests × Decarbonization Challenge 2022. The project earned accolades in past years too: In 2020, it earned a “sustainability action” commendation from the Ecological Life and Culture Organization and the “18th Corporate Philanthropy Award” from the Japan Philanthropic Association; in 2019, it won a commendation at the Low Carbon Challenge Cup 2019 and a “minister’s prize” in the corporate category of the Ministry of the Environment’s Good Life Awards; in 2018, it won a “Green Wave Award” prize at the Biodiversity Action Awards; in 2017, it won the Japan Wood Design Award.

*Related information: Yu no Mori

Japan Nature Conservation Award 2022: Grand prize in the conservation in practice category

Forests × Decarbonization Challenge 2022: Forestry Agency Director-General Award

Kochi Prefecture confers certificate of carbon sequestration

On July 15, 2022, Kochi Prefecture awarded KOKUYO and Kaunet a CO₂ absorption certificate in recognition of the fact that we had offset a total of 4,698 tons of CO₂ (KOKUYO offset 4,120 tons and Kaunet offset 578 tons). The award ceremony was held at the prefectural office. Presenting the award, Nobuyuki Mutou (who heads the prefecture’s department for forestry and the environment) thanked the two companies for contributing over the years to Kochi’s efforts to preserve its environment, manage its forests, promote local industry, and support its PR. The 4,698-ton offset represented 12% of the group’s total CO₂ emissions in 2022 (38,792 tons). As well as preserving forests, this effort proves valuable for mitigating climate change.

FSC certification

Yui-no-Mori has enjoyed FSC certification since 2007. Following a regular audit performed on 14 and 15 September, 2022, the project was recertified.

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  Presentation of CO₂ absorption certificates

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  CO₂ absorption certificate

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  An FSC certification audit in progress

Monitoring thinning outcomes

An important part of forest conservation is seeing the outcomes of thinning. We monitor these outcomes over the long term in partnership with Shimanto Forestry Association, Shimanto High School, officials of Kochi Prefecture and Shimanto. On July 17, 2022, we measured the water quality of Shimanto River. On November 19, we conducted a vegetation survey. We conduct regular vegetation surveys in two locations.

*Related information:View the latest vegetation survey report from the students of Shimanto High School

Using the byproducts of thinning

Since 2000, we have used the byproduct of thinning work to make furniture products in partnership with Shimanto Forestry Association. In 2007, Kaunet started marketing furniture, among other things, under the Yui-no-Mori brand. As of 2022, the distributor offers 11 Yui no Mori products. To help spread the word about Yui-no-Mori, Kaunet launched a scheme in 2008 whereby customers can use their loyalty points to fund the thinning work. In 2022, there were around 167 applications for the scheme. Since February 2011, Kaunet has donated 1% of the proceeds from some Yui-no-Mori products to an afforestation campaign (Midori no bokin; “green appeal”) organized by the National Land Afforestation Promotion Organization.

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  A vegetation survey

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  Participants measuring water quality in Shimanto River

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  Kaunet’s Yui no Mori products

ReEDEN Project

The reeds of Lake Biwa play an essential role. They provide an aquatic habitat, support biodiversity, and absorb CO₂. In the past, the reeds served as material for roofing and sudare screens, but with the decline of such traditional industries, the reedbeds are no longer maintained so well. The lake once had 260 hectares of reedbeds, but only half remains. In 1992, Shiga Prefecture passed an ordinance to address the problem by conserving, cultivating, and using the reeds. Believing that such action would preserve Lake Biwa’s beautiful environment and fight climate change, KOKUYO Product Shiga (which operates near the lake’s shore) launched ReEden Project in 2007 to raise awareness about the reeds and promote their use, and thereby help conserve Lake Biwa’s environment.

Network for Protecting Lake Biwa Through Reed Management

Winter reed cutting is essential for reed cultivation. At Lake Biwa, this task is performed by a network of volunteers called the Network for protecting Lake Biwa through reed management. Formed in 2009 on the premise that it takes more than one organization to protect Lake Biwa, the network aims to bring on board a variety of local organizations. To that end, members visit business premises and share the message about Lake Biwa as a way to persuade the organization to take an interest in local environment. Consisting initially of several companies that shared the same vision, the network now encompasses 132 companies. For more than ten years, the companies have worked with universities and local government to undertake the winter reed cutting (which takes place three times a year, from December to March). In recent years, participation in the cutting had expanded from company employees and family members to include local residents, public servants, museums and schools. With approximately 300 participants, the event had grown into one of the largest reed cutting activities in the prefecture. However, we have refrained from holding events for the Network due to the impact of COVID-19 since last year. We are continuing conservation activities on our own at a smaller scale.

A winter reed cutting event

How reed conservation can contribute to a low-carbon world: Showing the impact

Previously, the reed conservation work was evaluated using just a single metric: the area of lake in which reeds were conserved (the only data point released by Shiga Prefecture). It was felt that there was potential for broader scientific evaluation. Meanwhile, across the country, conservation groups were promoting rate of carbon sequestration (capture and removal of CO₂) as an index for measuring the effects of forest thinning and other forest management work. Given that reeds also absorb CO₂, we decided that we could use the same measure for ReEden. In 2017, we started inviting researchers to conduct a biomass survey during the winter cutting. Across a three-year period, the researchers measured reed height, density, weight, thickness, and carbon sequestration. Consequently, we established a methodology for showing the extent to which ReEden offsets CO₂ emissions.

We now had a completely new perspective, something other than evaluating the project just in terms of area conserved. This biologic approach was praised by a group of academics who had formed a committee to conserve reedbeds in the prefecture. Members of government, academia, and industry joined forces to develop a tool that measures CO₂ absorption in reeds by multiplying reed cutting area by reed height equivalent. Released at the end of 2019, the formula has been published on Shiga Prefecture’s website. With the release of the tool, people can now see how the project is contributing toward a low-carbon world. The data has demonstrated that the project is mitigating climate change in addition to improving the lake’s water quality and biodiversity. This knowledge has boosted participants’ motivation and brought more people on board. The project team plans to expand use of the tool with a view to benefiting the whole of the prefecture.

The team’s vision is to follow up the carbon sequestration work in forests across Japan by developing an unprecedented carbon sequestration system for lakeside environments.

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  Measuring reed density

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  Measuring reed weight

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  Measuring reed thickness

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  Measuring reed height

Related information

KOKUYO Group’s policy on timber procurement

In 2011, we released a groupwide policy on timber procurement to enshrine our commitment to sustainable use of forest resources. Since our foundation, timber has served as an important resource in our products, such as paper. Recognizing the vital role forests play in mitigating global warming and supporting biodiversity, we aim to promote harmony with forests by ensuring that our timber procurement is legal, transparent, and sustainable.

Results of due-diligence review of timber compliance (in accordance with Timber Legality Certification Due Diligence System Manual —Furniture Edition)

In 2022, our due-diligence review of timber compliance revealed potential legal issues with the timber used in three of our conference chair brands: Airtreave (veneer), Augus (veneer), and WT-150. For our 2023 general catalog, we therefore derecognized the chairs as products complying with the Act on Promoting Green Procurement. We will continue performing rigorous due diligence while finding ways to further enhance the manual’s effectiveness. You can view the manual by following the link below.

Certified as a procurer of legal and sustainable timber

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

FSC Certification

In 2003, we received chain-of-custody (COC) certification from the Forest Stewardship Council® (FSC). The FSC is an international non-governmental organization that runs a system of third-party forestry certification. Its purpose is to preserve forest environments by promoting a responsible form of forest management that benefits local communities and is economically sustainable. COC certification applies to the processing and distribution of FSC-certified products. The organizations in our group that have obtained COC certification are KOKUYO, Kaunet, and KOKUYO Product Shiga. The FSC has approved our products, including our printer paper and notebooks. In 2016, we received COC certification under the Programme for the Endorsement of Forest Certification (PEFC). The PEFC is a forest certification scheme. Its criteria is based on accepted intergovernmental standards. We aim to get more of our products certified for their sustainable use of forest resources. (FSC® C004748)

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  Printer paper (PPC Color Paper)

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  Reed paper

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  FUBI

How we have used forest resources

In 2022, we used around 7,012 tons of wood in furniture products, equivalent to 15% of our total raw materials (excluding packaging materials). Of this wood, 20% consisted of rough-cut lumber that was made into solid wood or engineered wood (including plywood). The remaining 80% consisted of forest residues (byproduct from thinning or clearing) or engineered wood (including medium-density fiberboard and particle board) made from such. Each year, we report such data to JOIFA, the body that certifies us as a “procurer of legal and sustainable timber,” in compliance with the Act on Promoting Green Procurement. As per JOIFA’s reporting guidelines, we try to identify the wood species among the timber we use.

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  Materials used in furniture products (excluding packaging) in 2022

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  Engineered wood versus rough-cut lumber

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  Tree species among rough-cut lumber used

Timber use survey

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

The data in the above table has been aggregated from the figures provided by each supplier. The data covers only wood from rough-cut lumber.

The table shows only wood species for which we could identify the country or region.

Accolades and recognition

Accolades

Yui no Mori earns grand prize in the conservation in practice category” at the Japan Nature Conservation Award 2022

The Japan Nature Conservation Award is an award program run by the Nature Conservation Society of Japan. Founded in fiscal 2014, the program honors forestry initiatives that contribute significantly to biological end ecological research, nature conservation, and environmental education. The following aspects are considered: Community engagement, sustainability, expertise, innovativeness, and collaboration. Yui-no-Mori was selected for the grand prize from among 101 contenders in the conservation practice category. The judges were impressed by how the project balances forest conservation with local economic development. The prize is shared with our project partner, the Shimantocho Forestry Association.

Presentation of award

Yui no Mori earns “excellence award” at Forests × Decarbonization Challenge 2022 (Forestry Agency Director-General Award)

Launched in 2022, the Forests × Decarbonization Challenge 2022 is a contest of forestry initiatives of private-sector and non-governmental organizations. The program honors initiatives that are particularly outstanding in view of the carbon offsets they generate and in view of various other benefits. Yui-no-Mori was commended in the following respects:

• The byproducts of thinning are put to good use as much as possible.
• In partnership with the Shimantocho Forestry Association, the byproducts of thinning are developed into furniture products and sold across Japan.

Presentation of award

Mie Plant earns Chairperson’s Award of the Japan Greenery Research and Development Center at the National Award for Greenery Factory

First launched in 1982, the National Award for Greenery Factory encourages greenification in industrial areas by honoring organizations and individuals that improve environments in and around factories.

What impressed the judges about Mie Plant

• Green spaces make up 32% of the site, 9% more than when operations began.
• Great care is taken when selecting tree species and locations for the trees. The green spaces are well maintained.
• There is active engagement with the local community.
• Efforts are made to contribute to society.

Presentation of award