SUPPLY CHAIN MANAGEMENT INITIATIVES

Sustainable procurement efforts

We have been surveying our suppliers to ascertain their efforts towards sustainability since 2022 and sent our questionnaire to 566 suppliers in 2024. We received responses from 501 of these suppliers (88.5% response rate) and fed back the results to the respondents. We will continue to work towards receiving responses from all our suppliers in 2025. We rank our suppliers from A to D based on their questionnaire answers. We have a commitment goal for 2027 to procure at least 75% of supplies from A- or B-ranked suppliers and to generate at least 75% of merchandise sales from products that meet the KOKUYO Group Paper and Timber Procurement Standards we instituted in April 2024. We also seek for our suppliers to sign an agreement signaling their awareness and endorsement of our KOKUYO Group Sustainable Procurement Policy and KOKUYO Group Sustainable Procurement Guidelines. As of February 2025, 1,040 of the 1,104 suppliers we targeted have signed (94.2% sign-up rate).

See “Coexistence with Nature”