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. These chips are mainly purchased through trading companies, and many of the suppliers are reliable partners who have been dealing continuously for many years.

1. We confirm, for each shipping unit, that "the logging area and supplier comply with relevant laws and regulations and do not contain illegally logged wood" through 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 receives 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, 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 wood that is problematic from an environmental perspective.

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. These materials are also disclosed as necessary for audits.

1. Our employees are stationed in major chip source countries such as Australia, Chile, and Brazil to witness shipments as necessary and confirm the quality of delivered raw materials.
   They also gather information on suppliers' operations and the social conditions in those regions.

2. The raw materials department of each mill regularly inspects the subsidiaries responsible for collecting domestic materials to ensure they are properly verifying the legality of domestic timber and understanding supplier information. This department and the aforementioned subsidiaries also conduct similar inspections of their affiliated chip mills.

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

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

• 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. Wood-related industry groups, such as member groups of the National Federation of Timber Cooperatives, certify businesses after reviewing their efforts in segregated management and documentation of legally harvested timber. Certified businesses sell legally harvested timber, specifying the industry association certification number.