Preservation of Biodiversity

NIPPON PAPER GROUP business activities are heavily dependent on the natural world that nurtures biodiversity, and at the same time have a variety of impacts. Therefore, we have established “Basic Policy on the Preservation of Biodiversity” and strive to harmonize biodiversity and business activities through the sustainable use of wood resources and abundant water resources, which are major raw materials, and the reduction of environmental burden.

The Board of Directors of Nippon Paper Industries receives reports on the progress of biodiversity conservation initiatives and the results of risk analysis from the executive officer in charge of GHG emissions reduction and promotion of environmental management and the Risk Management Committee, and supervises the execution of business operations.

As a forest and paper and pulp industry, the Group conducts its business activities while enjoying the blessings of biodiversity and natural capital. Internationally, the movement for nature positivity, such as the Kunming-Montreal Global Biodiversity Framework and the Taskforce on Nature-related Financial Disclosures (TNFD), has accelerated, and the management and disclosure of nature-related risks have become important themes. In Japan, through the National Biodiversity Strategy and Action Plan of Japan and the promotion of 30by30, there is a growing expectation for forest management and sustainable wood use by companies in harmony with nature. In forest management and raw material procurement, greater consideration for ecosystems is required. In the midst of these changes in the environment, we are required to further contribute to the conservation of biodiversity and the maintenance and restoration of natural capital through our business activities, and we are working to achieve this.

The Group strives to reduce its impact on biodiversity throughout its value chain, from raw materials and fuel to manufacturing processes, wastewater treatment, and GHG emission control, and procure sustainable wood resources from well-managed forests.

• The Group conducts sustainable forest management in its own forests in Japan and overseas, and establishes environmental forest areas and protected areas in areas that require special attention through biodiversity surveys and ecosystem monitoring. In addition, in the managed forest areas that produce timber, we implement operations with consideration for local biodiversity.

• Through the use of the forest certification system, we have received confirmation from a third party.

• All Company-owned Forests managed by the Company and overseas plantation subsidiaries have obtained forest certification.

Based on the TNFD Information Disclosure Framework, the Group assesses nature-related risks using the LEAP approach and sets global core disclosure indicators and targets based on the TNFD recommendations.

Global disclosure indicators other than those above are currently being deliberated on

The Company is collaborating with the Wild Bird Society of Japan to preserve the precious habitat of the Blakiston's fish owl while pursuing timber production activities.

In 2015, standards which included forestry operation restrictions were defined for areas of a company-owned forest which were frequently used by Blakiston's fish owls. These standards were revised in 2024, and Blakiston's fish owl habitats are being protected based on the bird's actual behavior while the Company also continues its timber production.

Multiple chicks have been confirmed as successfully leaving artificial nesting boxes installed in the company-owned forest, and the collaboration is assisting in the restoration of biodiversity.

Through this initiative, the Company is contributing to the realization of "Nature Positive."

* Blakiston’s fish owl was identified as a national protected species in 1971, and placed on the Red List of critically endangered species by Japan’s Ministry of the Environment.

AMCEL (Brazil) has about 170,000 hectares as protected areas of approximately 300,000 hectares of company-owned land. The protected areas are a habitat for many wildlife species and they also include forests with high conservation value where rare and endangered species live. AMCEL conducts biodiversity surveys on the company-owned land.

Following an agreement concluded in 2017 with the Okinawa Forest Office of the Kyushu Forestry Department of the Forestry Agency, in about 9 hectares of national forest on Iriomote Island, the Company has collaborated with the NPO Iriomote Island Ecotourism Association in efforts to eradicate Bay Biscayne creeping oxeye*, an invasive species, and is investigating invasion by exotic plants. The island is registered as a world natural heritage site and is home to rare wild animals and plants such as Iriomote cats, which have been designated by the Japanese government as a natural monument. Measures must be taken to prevent the intrusion of invasive plants. The creeping-oxeye is almost never seen anymore within the activity area, and based on this project achievement, in March 2022, the project agreement was renewed for another five years.

* A plant in the Asteraceae family which originated from the Americas, but was introduced throughout Okinawa for greenifying slopes and embankments, etc. It has strong propagating capabilities, and there are concerns over its impact on local ecosystems.

The Company and Group company MARUNUMA KOGEN RESORT are coordinating with Coca-Cola Bottlers Japan, Inc. ("CCBJ") in the conservation and protection of forest and water resources. They are working together to maintain "healthy forests" that nurture "bountiful water." Part of the Sugenuma company-owned forest in Katashina Village, Gunma Prefecture (1,747 ha), is located in the water source area of CCBJ’s Saitama Mill and Iwatsuki Mill. To maintain its water source retention capability, the Group promotes forest conservation and maintenance activities.

Nature-related risks and opportunities were identified based on the results of evaluations of dependence and impact on nature. The key risks, opportunities, and countermeasures involving biodiversity and natural capital related to business activities are as indicated below.