Kao Corp.

"We will require business partners and other related parties whose impact on human rights is directly linked to Kao's operations, products or services to respect and not to infringe upon human rights. [...] We support and respect international norms of behavior on human rights, including the International Bill of Human Rights, [...] the International Labour Organization's Declaration on Fundamental Principles and Rights at Work, which states the core labor standards (freedom of association and the effective recognition of the right to collective bargaining, the elimination of all forms of forced or compulsory labor, the effective abolition of child labor, the elimination of discrimination in respect of employment and occupation)"

Kao works with small holders and includes them within their supply chain - "In the Kao KLP released in April 2019. we set out a new goal to complete the confirmation of traceability through to small-scale farms by 2030. If it is confirmed that the places of origin of procured palm oil are clear, that the palm oil is sourced from well-managed palm farms. and that the human rights of employees working such farms are considered."

"Kao has adopted the Guidelines for Sustainable Procurement of Raw Materials*1 based on the policy of actively pursuing the environmental conservation. The Guidelines state that for palm oil we will monitor whether the plantations are properly developed by the suppliers, and if any violations are suspected, we will follow up with the suppliers and request remediation."

"We will require business partners and other related parties whose impact on human rights is directly linked to Kao's operations, products or services to respect and not to infringe upon human rights. [...] We support and respect international norms of behavior on human rights, including [...] the principles of free, prior and informed consent of indigenous peoples. Kao Human Rights Policy is guided by the United Nations Guiding Principles on Business and Human Rights. "

In the 2019 CDP Forests report published on the Kao website, Kao reported a cut off data of 2006 for palm oil.

"As part of our risk assessment for the consistent continuation of our business, Kao now identifies the places of origin of all supplied palm oil. The available tools do not provide sufficient information for tracing the places of origin. Therefore, we have developed internal company methods, and we use them to evaluate traceability up to the mills. (1) Obtain information on palm oil mills from Tier-1 suppliers (2) Use risk-mapping to identify farms around the mills, and mills with higher potential risks for deforestation (3) Visit those mills to verify their conditions and request improvements The activities in (2) and (3) above are conducted in cooperation with third-party consultants. We had identified 89 high-risk palm oil mills by 2018. "

In the 2019 CDP Forests report published on the Kao website, Kao reported its total usage of palm oil as 421,000 tons of which 77,700 tons were certified.

"We administer a Self-Assessment Questionnaire (SAQ: social and environmental aspects) for all Tier-1 suppliers. • Main strategy of engagement Kao has established the Guidelines for Supplier's Assessment, which stipulates environmental, safety, legal, and other initiatives for all Tier-1 suppliers. We request our suppliers to perform this self-' assessment, and we monitor the results to confirm their compliance with the Guidelines. We also request our main suppliers to respond to surveys under the CDP Supply Chain Program. • Estimated percentage 91-99%. As a result of monitoring the self-assessment results. we visited suppliers who had not met the criteria last year, shared issues with them, and requested them to work on making specific improvements. In addition, regarding the forest issues addressed by the CDP Supply Chain Program, we requested 6 of our palm oil suppliers to respond to a survey in order to conserve the forests throughout the entire supply chain. "

"We administer a Self-Assessment Questionnaire (SAQ; social and environmental aspects) for all Tier-1 suppliers. Main strategy of engagement Kao has established the Guidelines for Supplier's Assessment, which stipulates environmental, safety, legal, and other initiatives for all Tier-1 suppliers. We request our suppliers to perform this self-assessment, and we monitor the results to confirm their compliance with the Guidelines. [...] As a result of monitoring the self-assessment results, we visited suppliers who had not met the criteria last year, shared issues with them, and requested them to work on making specific improvements. In addition, regarding the forest issues addressed by the CDP Supply Chain Program, we requested 6 of our palm oil suppliers to respond to a survey in order to conserve the forests throughout the entire supply chain."

"In addition, regarding the forest issues addressed by the CDP Supply Chain Program, we requested 6 of our palm oil suppliers to respond to a survey in order to conserve the forests throughout the entire supply chain."

"We will require business partners and other related parties whose impact on human rights is directly linked to Kao's operations, products or services to respect and not to infringe upon human rights. [...] We support and respect international norms of behavior on human rights, including the International Bill of Human Rights, [...] the International Labour Organization's Declaration on Fundamental Principles and Rights at Work, which states the core labor standards (freedom of association and the effective recognition of the right to collective bargaining, the elimination of all forms of forced or compulsory labor, the effective abolition of child labor, the elimination of discrimination in respect of employment and occupation)"

"We will require business partners and other related parties whose impact on human rights is directly linked to Kao's operations, products or services to respect and not to infringe upon human rights. [...] We support and respect international norms of behavior on human rights, including [...] the principles of free, prior and informed consent of indigenous peoples. Kao Human Rights Policy is guided by the United Nations Guiding Principles on Business and Human Rights. "

"Kao Corporation announced the FSC certified procurement declaration 2020 at the Post 2020 Procurement of Sustainable Forest Resources Press Conference, sponsored by Forest Stewardship Council (FSC) Japan, which was held on July 2. This announcement promised that the company would procure FSC certified materials as part of its efforts to procure sustainable forest resources in collaboration with six other Japanese companies."

"As part of our risk assessment for the consistent continuation of our business, Kao is now identifying the places of origin of all supplied pulp. [...] we have developed internal company methods to achieve our objectives, including a risk assessment for deforestation for each procurement source (place of origin). [...] This checklist tool allows us to independently check wood feedstock for its impact on deforestation, and its effect on society. Kao uses this tool because it is reliable, it was created objectively, and it allows us to comprehensively evaluate Kao's global suppliers using consistent benchmarks. For example, Kao identifies certified forest products, including FSC, as low-risk commodities that have been screened regarding deforestation risks, and chooses preferred suppliers that can supply those certified products. For suppliers of uncertified products, investigations are conducted using the WWF Japan checklist. Based on the checklist results, we assess any risks arising from raw materials supplied to Kao in our annual review after evaluating copies of logging permissions and environmental assessments."

In the 2019 CDP Forests report published on the Kao website, Kao reported its total usage of paper as 234,000 tons of which 201,240 tons were certified.

"We administer a Self-Assessment Questionnaire (SAQ: social and environmental aspects) for all Tier-1 suppliers. • Main strategy of engagement Kao has established the Guidelines for Supplier's Assessment, which stipulates environmental, safety, legal, and other initiatives for all Tier-1 suppliers. We request our suppliers to perform this self-' assessment, and we monitor the results to confirm their compliance with the Guidelines. We also request our main suppliers to respond to surveys under the CDP Supply Chain Program. • Estimated percentage 91-99%. As a result of monitoring the self-assessment results. we visited suppliers who had not met the criteria last year, shared issues with them, and requested them to work on making specific improvements. In addition, regarding the forest issues addressed by the CDP Supply Chain Program, we requested 6 of our pulp suppliers to respond to a survey in order to conserve the forests throughout the entire supply chain. "

"If an unsustainable supplier identified in light of the check list. business improvement will be required or suspension of business transactions wall be taken into account. There was no supplier required business improvement or suspended business transactions in 2018."

"If an unsustainable supplier identified in light of the check list. business improvement will be required or suspension of business transactions wall be taken into account. There was no supplier required business improvement or suspended business transactions in 2018."

"We will require business partners and other related parties whose impact on human rights is directly linked to Kao's operations, products or services to respect and not to infringe upon human rights. [...] We support and respect international norms of behavior on human rights, including the International Bill of Human Rights, [...] the International Labour Organization's Declaration on Fundamental Principles and Rights at Work, which states the core labor standards (freedom of association and the effective recognition of the right to collective bargaining, the elimination of all forms of forced or compulsory labor, the effective abolition of child labor, the elimination of discrimination in respect of employment and occupation)"

"We will require business partners and other related parties whose impact on human rights is directly linked to Kao's operations, products or services to respect and not to infringe upon human rights. [...] We support and respect international norms of behavior on human rights, including [...] the principles of free, prior and informed consent of indigenous peoples. Kao Human Rights Policy is guided by the United Nations Guiding Principles on Business and Human Rights. "