Sustainable Procurement of Raw Materials

NIPPON PAPER GROUP is working to build a sustainable raw materials procurement system that earns the trust of a broad range of stakeholders through its supply chain management with consideration for the environment and society.

In 2005, the Group established “Principles and Basic Policies Concerning Raw Materials Procurement” (hereinafter, “Procurement Policies”) and has been conducting procurement activities based on the Procurement Policies​, and in 2022, the Group revised the Procurement Policies to allow it to more effectively address issues such as respect for human rights and climate change. The Group is striving to enhance its raw materials procurement by conducting procurement activities in accordance with the Procurement Policies and promoting dialogues with stakeholders.

The Group has established the NIPPON PAPER GROUP Raw Materials Committee, which is chaired by the general manager of the Raw Materials and Purchasing Division at Nippon Paper Industries. The deliberations of this committee are reported to the Board of Directors through the Risk Management Committee, and strategies and important issues related to raw materials procurement are shared among the management.

The Group procures wood resources based on the Procurement Policy and the Procurement Guidelines, in accordance with three points: "Sourcing from sustainable forests (sustainability)," "Clearly identifying the origin of timber (traceability)," and "Maintaining full accountability (accountability)." To implement sustainable procurement, the Group formulate and execute action plans, and utilize forest certification schemes to verify the appropriateness of wood resources. All wood used in our products is FSC® or PEFC-certified wood, and we procure only materials that have undergone risk assessment.

The Group implements an action plan based on the Procurement Policy and the Procurement Guidelines, and is committed to minimizing risks and building a sustainable supply chain. Under the action plan, for both domestic and overseas timber, it conducts legality verification based on the Clean Wood Act, legality and traceability verification, sustainability verification, and third-party audits. For both new and existing suppliers, it confirms their compliance with the Procurement Policy and the presence of risks, and takes corrective measures for suppliers deemed high-risk or non-compliant.
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Nippon Paper Industries, Nippon Paper Papylia, Nippon Paper Crecia, and Nippon Paper Lumber are registered as both Type 1 and Type 2 Wood-related Businesses under the Clean Wood Act, confirming the legality of the covered items they handle.

The main raw materials for the Group's paper products are wood pulp (just under 50%) and wastepaper and recycled pulp (just over 50%).
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The Group procures just over 60% of its wood chips from overseas and just under 40% from Japan. Overseas timber is imported from various regions worldwide, including Asia, Australia, and South America. Procurement from company-owned forests is conducted under appropriate planning and management, and all company-owned forests have obtained forest certification. For external procurement, we strengthen supply chain management and have established a system that allows tracing back to the forest.
Click here for a breakdown of the procurement of wood chips for paper manufacture (domestic and overseas, by country, and tree species)

The Group continues to maintain the stable procurement system that it has built over the course of many years in cooperation with the wastepaper industry. The Group is promoting the building of a closed-loop system, the collection and utilization of previously unused and difficult-to-treat wastepaper, and the circular use of wastepaper in collaboration with local governments.
Click here for the amount of wastepaper and recycled pulp procured

All procured wood resources are audited annually by the Japan Paper Association's "Illegal Logging Monitoring Project," and assessed for risks by the due diligence system of forest certification PEFC.