Action Plan for Wood-based Raw Material Procurement

Nippon Paper Industries procures wood chips from approximately 20 overseas suppliers, including affiliates, as raw materials for paper and pulp. They are mainly purchased through trading companies, and many of the suppliers are reliable partners who have been dealing continuously for many years.

1. We have confirmed the shipping unit“The logging area and supplier must comply with relevant laws and regulations and do not contain illegal logging wood”by relevant documents.

2. We conduct in-depth surveys of suppliers once a year on the following items.
   Applicable laws and regulations and their compliance status
   ・Forest type, forest ownership, and forest certification status
   ・Consideration for human rights, labor, and society
   - Biodiversity, ecosystems, and conservation of soil and water resources

3. In addition to wood chips, we also investigate and confirm imported pulp as above

For domestic timber as a raw material for paper and pulp, Nippon Paper Lumber Co., Ltd., Our subsidiary, collects from approximately 500 suppliers.

1. Nippon Paper Lumber Co., Ltd. has received legality certification (*) from wood-related organizations.
   The Company has received a supply of wood from Nippon Paper Lumber Co., Ltd. that has been confirmed to be legal.

2. Nippon Paper Lumber Co., Ltd. confirms the legality of timber delivered from suppliers and has the following information about suppliers.
   ・Name and address of the delivery company
   ・Whether or not the material supplier is certified by a related organization
   ・Contents of wood (thinned wood,lumber, waste wood,domestic timber, imported wood,hardwood,softwood)
   ・Labor and environmental considerations

3. We also confirm that domestic pulp does not contain illegally harvested wood and does not contain problematic wood due to environmentally friendly.

Related materials shall be stored for at least 5 years, and if they are separately subject to the Commercial Code or other laws, such provisions shall be complied with. We also disclose these materials as necessary for audits.

1. Our employees are stationed in major chip source countries such as Australia, Chile and the Company Brazil to witness the shipment and ensure the quality of the raw materials delivered, as well as to assist with the shipment.
   We also understand information about suppliers' operations and social conditions in the region.

2. The raw materials department of each mill regularly inspects the subsidiaries in charge of collecting domestic materials to ensure that they are properly checking the legality of domestic timber and understanding the information of suppliers. The division and its subsidiaries also conduct similar inspections on its affiliated wood chip mill.

3. To ensure that the Company is procuring woody raw materials in accordance with its procurement policy, the Company has our efforts evaluated from an objective third-party perspective during the annual forest certification audit, and the Company proactively address any recommendations received.

The details of third-party audits,the Company own investigations, and important information will be introduced in the ESG databook and the Company website in the future.

• It complies with the Forestry Agency's“Guidelines for the legality and sustainability of wood and wood products”(February 15, 2006) stipulated in the Basic Policy of the Green Purchasing Act, and is certified by wood-related industry groups such as member groups of the National Federation of Timber Cooperatives after reviewing their efforts to separate and manage documents of timber that have been confirmed to be legal. Certified businesses sell wood that has been confirmed to be legal, specifying the industry association certification number.