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  • Overall approach
    7/12
    • Overarching commitment on deforestation
      3/4
      Zero deforestation/Deforestation-free commitment or, for timber, pulp & paper companies only, commitment to well implemented harvest and no deforestation of HCV & HCS areas
      3/4
      "We understand that our business depends on natural capital, and that a natural resource-dependent supply chain entails the risk of damage to that capital. We pursue zero deforestation at the source in our procurement of raw materials including palm oil and paper. We also support NDPE and request that suppliers and supplier group companies comply with it."
    • Signatory to an initiative tackling deforestation
      1/1
      Yes
      1/1
      Kao Corp - As a member of The Consumer Goods Forum(CGF), The UN Global Compact, The New York Declaration on Forests 
    • Awareness of the value of forests
      1/1
      Yes
      1/1
      "For Kao, forest commodities such as palm oil and paperand paper pulp constitute very important raw materials. Incontemporary society, there is an accelerating trend towardthe destruction of natural forests and creation of newplantations in order to increase supply of these materials.Greenhouse gas emissions deriving from forest destruction‘and changes in land use account fora significantpercentage—6.5%of total global emissions". Furthermore,‘we recognize that degradation of biodiversity and issuesrelating to the human rights of local workers constitutesignificant risks in relation to sustainable development. [...] we will not take part in procurement activities that use high conservation value forests"
    • Deforestation as a business risk
      1/1
      Yes
      1/1
      Does the company recognise the risk as financial, operational, competition, reputational, or other? Please detail.: Reputational, Financial 
      "A large quantity of palm kernel oil is used for activators contained in detergents, one of Kao's key products. Timber is used for paper diapers and packing materials. If Kao uses forest-risk commodities obtained through illegal logging, its brand reputation may be damaged and we may risk being rejected by the market. We accumulate both historical and the latest information on loss of markets, including case studies on other companies. "
    • High-level management of deforestion
      1/1
      Yes
      1/1
      How often does the committee or board meet to assess company's progress on addressing deforestation-related issues?: Annually

      Which commodities does it apply to?: Palm oil; Pulp & Paper
      "Since forest-risk commodities are closely tied to Kao's business, they must be monitored as business management issues, and are therefore under the CEO's oversight. The Board of Directors delegates the management of forest-related risks to the Internal Control Committee, and the management of forest-related opportunities to the Sustainability Committee. Our CEO serves as the chairperson of both Committees. The Risk and Crisis Management Committee, and the Responsible Care Promotion Committee, which constitute the Internal Control Committee, are engaged in the management of forest-related risks. [...]  Because forest-risk commodities have a large impact on Kao's businesses, and must be supervised as a business management issue, they are under the oversight of I C and SC, with the CEO serving as chairman on both. The Board confirms once, or more, annually the progress of Zero Deforestation in the Procurement of Palm Oil, Paper, and Pulp, the 2020 objective Kao has set forth"
    • Executive compensation linked to deforestation
      Yes, for at least one commodity
      0/0
      Does it disclose the percentage of pay at risk?: 28-35%

      Which commodities does the committee focus on?: Pulp & Paper
      "Every year the company assesses its achievements towards its 2020 targets: zero deforestation in the procurement of palm oil, paper, and pulp. More specifically, the company checks the number of years elapsed since implementing the plan and the rates of commodity procurements confirmed as not contributing toward deforestation. Kao CPO's remuneration includes a performance-based bonus. The company provides corporate shares based on achievement of the business performance targets required by the mid-term plan. The performance-based bonus accounts for 28-35% of the baseline remuneration (when the performance-linked factor is set to 100%). The extent to which the CPO has achieved the target is comprehensively evaluated with respect to multiple business targets, and the performance-based bonus is set according to the evaluation result. One of the business performance targets is "zero deforestation by 2020" as set forth in the Guidelines for Sustainable Procurement of Raw Materials. Benchmark measurement method: The "zero deforestation by 2020" goal consists of six action targets, including confirmation of zero deforestation at places of palm oil origin. The achievement ratio for each target is calculated, and its average is used as the achievement benchmark for the "zero deforestation by 2020" goal. Success threshold: If the ratio of the percentage of time elapsed toward 2020 from the year the goal was set (A) to the "zero deforestation by 2020" goal benchmark (B) is 1 or more, the activities in the relevant year are deemed successful."
    • Target to reduce emissions from land-use change
      0/2
    • Reporting on emissions from land-use change
      0/2
    • Disclosure of conservation activity
      Yes
      0/0
      How many hectares of conservation area are being supported or facilitated by the company on land it does not own or manage?: 9 Hectares
       "April 2019–March 2022 (3 years) [...] Overview of Phase Two of the FURUSATO Environment Conservation Project in North Thailand - Project activities:1. Tree planting on approximately three hectares each year (total of nine hectares in three years)As in the first phase of the project, local residents take the lead in planting trees. Activities including work to prepare the land for afforestation, tree planting, subsequent management (cutting down vegetation three times a year), creating a firebreak, and forest fire prevention measures.2. Crop cultivation to increase incomeOn approximately 1.6 hectares of the forest created in the first phase of the project, crops such as bamboo shoots, ginger, and bananas are being planted as an agroforestry*1 activity. Local residents are provided with knowledge and technology for crop cultivation, and sales of the harvested crops support their increased income."
    • Disclosure of reforestation activity
      Yes
      0/0
      How many hectares of reforestation or restoration are being or have been conducted or facilitated by the company?: 45 hectares
       " Kao Corporation, Japan funding the project called "FURUSATO - Kao reforestation and environment conservation project" - the restoration of degraded forests in the Northern part of Thailand. [...] The 1st phrase implemented an area of 220 rai (5 years plan, Year 2012 - 2016) located at Huai Sai Man View Point, Chiang Khong District, Chiang Rai Province. This year, Y2019 comes the 2nd phrase subsidizing for 3 years on an area of 60 rai at Ban Muang Kan , Chiang Khong , Chiang Rai (Year 2019 - 2021)"
    • Target to reduce emissions in scope 1/2
      Yes
      0/0
      Type of climate target: Other or unclear

      What is the target date for the company to achieve their climate target?: 2030
      "At Kao, the ingredient procurement phase accounts for 38% of the entire greenhouse gas (GHG) emissions throughout the Kao product lifecycle; this figure is approximately four times the percentage of Scopes 1 and 2 combined (9%). Kao set the goal of reducing the emissions throughout the Kao product lifecycle by 22% (2030 goal when compared with the 2017 level). To achieve this goal, we will improve the resilience to climate change of Kao suppliers by encouraging them to promote activities that reduce greenhouse gas (GHG) emissions""
  • Commodity score
    47/88
    • Palm oil
      60/88
      • Commitment Strength
        18/20
        • Commitment to protect priority forests
          6/8
          • Commitment details
            Zero-gross deforestation
            4/6
            Commitment to protect priority forests
            Zero-gross deforestation
            4/6
            Which certification schemes are used?: RSPO
            "By 2020, adequately confirm zero deforestation at the source through cooperation with plantations, suppliers (mills and refineries) and third-party organizations. In addition, we will not take part in procurement activities that use high conservation value (HCV*1) forests, high carbon stock (HCS*2) forests or peatlands.[...] By 2020, work to obtain RSPO SCCS certification of Kao Group manufacturing sites in order to build a traceable supply chain for the group. " 2020 Update on this commitment - "Completed mill identification, deforestation monitoring for surrounding areas Continued investigation of high-risk mills Disclosure of mill list on website [...] Acquisition of RSPO SCCS certifications: Completed acquisition for group plants and offices within and outside Japan in 2018" 
          • Commitment applies to all regions, suppliers and operation
            Yes
            1.3/1.3
            Commitment applies to all regions, suppliers and operation
            Yes
            1.3/1.3
            "By 2020, adequately confirm zero deforestation at the source through cooperation with plantations, suppliers (mills and refineries) and third-party organizations. In addition, we will not take part in procurement activities that use high conservation value (HCV*1) forests, high carbon stock (HCS*2) forests or peatlands.[...] By 2020, work to obtain RSPO SCCS certification of Kao Group manufacturing sites in order to build a traceable supply chain for the group. " 2020 Update on this commitment - "Completed mill identification, deforestation monitoring for surrounding areas Continued investigation of high-risk mills Disclosure of mill list on website [...] Acquisition of RSPO SCCS certifications: Completed acquisition for group plants and offices within and outside Japan in 2018" 
          • Target date
            Current/achieved
            0.7/0.7
            Target date
            Current/achieved
            0.7/0.7
            "By 2020, adequately confirm zero deforestation at the source through cooperation with plantations, suppliers (mills and refineries) and third-party organizations. In addition, we will not take part in procurement activities that use high conservation value (HCV*1) forests, high carbon stock (HCS*2) forests or peatlands.[...] By 2020, work to obtain RSPO SCCS certification of Kao Group manufacturing sites in order to build a traceable supply chain for the group. " 2020 Update on this commitment - "Completed mill identification, deforestation monitoring for surrounding areas Continued investigation of high-risk mills Disclosure of mill list on website [...] Acquisition of RSPO SCCS certifications: Completed acquisition for group plants and offices within and outside Japan in 2018" 
          • Interim target date
            NA (target date current or achieved or 2022)
            0.3/0.3
            Interim target date
            NA (target date current or achieved or 2022)
            0.3/0.3
            "By 2020, adequately confirm zero deforestation at the source through cooperation with plantations, suppliers (mills and refineries) and third-party organizations. In addition, we will not take part in procurement activities that use high conservation value (HCV*1) forests, high carbon stock (HCS*2) forests or peatlands.[...] By 2020, work to obtain RSPO SCCS certification of Kao Group manufacturing sites in order to build a traceable supply chain for the group. " 2020 Update on this commitment - "Completed mill identification, deforestation monitoring for surrounding areas Continued investigation of high-risk mills Disclosure of mill list on website [...] Acquisition of RSPO SCCS certifications: Completed acquisition for group plants and offices within and outside Japan in 2018" 
        • Commitment to protect High Carbon Stock areas and/or peatlands
          5/5
          • Commitment details
            Yes
            3/3
            Commitment to protect High Carbon Stock areas and/or peatlands
            Yes
            3/3
            Type of commitment: HCS; Peat
            "By 2020, adequately confirm zero deforestation at the source through cooperation with plantations, suppliers (mills and refineries) and third-party organizations. In addition, we will not take part in procurement activities that use high conservation value (HCV*1) forests, high carbon stock (HCS*2) forests or peatlands.[...] By 2020, work to obtain RSPO SCCS certification of Kao Group manufacturing sites in order to build a traceable supply chain for the group. " 2020 Update on this commitment - "Completed mill identification, deforestation monitoring for surrounding areas Continued investigation of high-risk mills Disclosure of mill list on website [...] Acquisition of RSPO SCCS certifications: Completed acquisition for group plants and offices within and outside Japan in 2018" 
          • Commitment applies to all regions, suppliers and operation
            Yes
            1.3/1.3
            Commitment applies to all regions, suppliers and operation
            Yes
            1.3/1.3
            "By 2020, adequately confirm zero deforestation at the source through cooperation with plantations, suppliers (mills and refineries) and third-party organizations. In addition, we will not take part in procurement activities that use high conservation value (HCV*1) forests, high carbon stock (HCS*2) forests or peatlands.[...] By 2020, work to obtain RSPO SCCS certification of Kao Group manufacturing sites in order to build a traceable supply chain for the group. " 2020 Update on this commitment - "Completed mill identification, deforestation monitoring for surrounding areas Continued investigation of high-risk mills Disclosure of mill list on website [...] Acquisition of RSPO SCCS certifications: Completed acquisition for group plants and offices within and outside Japan in 2018" 
          • Target date
            Current/achieved
            0.7/0.7
            Target date
            Current/achieved
            0.7/0.7
            "By 2020, adequately confirm zero deforestation at the source through cooperation with plantations, suppliers (mills and refineries) and third-party organizations. In addition, we will not take part in procurement activities that use high conservation value (HCV*1) forests, high carbon stock (HCS*2) forests or peatlands.[...] By 2020, work to obtain RSPO SCCS certification of Kao Group manufacturing sites in order to build a traceable supply chain for the group. " 2020 Update on this commitment - "Completed mill identification, deforestation monitoring for surrounding areas Continued investigation of high-risk mills Disclosure of mill list on website [...] Acquisition of RSPO SCCS certifications: Completed acquisition for group plants and offices within and outside Japan in 2018" 
          • Interim target date
            Yes
            0.3/0.3
            Interim target date
            Yes
            0.3/0.3
            "By 2020, adequately confirm zero deforestation at the source through cooperation with plantations, suppliers (mills and refineries) and third-party organizations. In addition, we will not take part in procurement activities that use high conservation value (HCV*1) forests, high carbon stock (HCS*2) forests or peatlands.[...] By 2020, work to obtain RSPO SCCS certification of Kao Group manufacturing sites in order to build a traceable supply chain for the group. " 2020 Update on this commitment - "Completed mill identification, deforestation monitoring for surrounding areas Continued investigation of high-risk mills Disclosure of mill list on website [...] Acquisition of RSPO SCCS certifications: Completed acquisition for group plants and offices within and outside Japan in 2018" 
        • Commitment to a traceable supply chain
          6/6
          • Commitment details
            Traces to Point of production
            4/4
            Commitment to a traceable supply chain
            Traces to Point of production
            4/4
            "By 2020, purchase only sustainably sourced palm oil that is traceable to the plantation for use in Kao Group consumer products"
          • Commitment applies to all regions, suppliers and operation
            Yes
            1.3/1.3
            Commitment applies to all regions, suppliers and operation
            Yes
            1.3/1.3
            "By 2020, purchase only sustainably sourced palm oil that is traceable to the plantation for use in Kao Group consumer products"
          • Target date
            Current/achieved
            0.7/0.7
            Target date
            Current/achieved
            0.7/0.7
            "By 2020, purchase only sustainably sourced palm oil that is traceable to the plantation for use in Kao Group consumer products"
          • Interim target date
            NA (target date current or achieved or 2022)
            0.3/0.3
            Interim target date
            NA (target date current or achieved or 2022)
            0.3/0.3
            "By 2020, purchase only sustainably sourced palm oil that is traceable to the plantation for use in Kao Group consumer products"
      • Social Considerations
        14/18
        • Labour rights in the supply chain
          Yes
          4/4
          Labour rights in the supply chain
          Yes
          4/4
          Details of commitment: ILO; Discrimination; Forced labour; Child labour; Freedom of association
          "we support and respect ... 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 discrimination in respect of employment and occupation)..." "We are committed to not violating human rights, including the prohibition of human trafficking, forced labor, child labor and all forms of discrimination, as well as the freedom of association and the right to collective bargaining..."[...] ""In cases where adverse impacts on human rights by business partners, suppliers and other related parties are directly linked to our business, products or services, we require these business partners, suppliers and other related parties to respect human rights and not to violate them."
        • Inclusion of small-scale farmers
          Yes
          4/4
          Inclusion of small-scale farmers
          Yes
          4/4
          What is the nature of that support?: Technical assistance/support
          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."
        • Gender equality in the supply chain
          No commitment
          0/4
        • Commitment to remediation
          Yes
          2/2
          Commitment to remediation
          Yes
          2/2
          Type of harm covered: Social harm; Environmental harm
          "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."; "Where we identify that we have caused or directly contributed to human rights impacts, we are dedicated to providing for or cooperating in the remediation of the adverse impacts through legitimate processes"
        • Commitment to ensure Free, Prior and Informed Consent
          Yes, the company commits to securing FPIC prior to acquiring new interests, developments, or expansions
          4/4
          Commitment to ensure Free, Prior and Informed Consent
          Yes, the company commits to securing FPIC prior to acquiring new interests, developments, or expansions
          4/4
          "In cases where adverse impacts on human rights by business partners, suppliers and other related parties are directly linked to our business, products or services, we require these business partners, suppliers and other related parties to respect human rights and not to violate them."[...] "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. "
        • Commitment to resolve land conflicts
          No
      • Reporting and Implementation
        28/50
        • Reporting against commitments
          2/2
          • Commitment to protect priority forests
            Yes, for all commodity exposure
            1.7/1.7
            Commitment to protect priority forests
            Yes, for all commodity exposure
            1.7/1.7
            "By 2020, adequately confirm zero deforestation at the source through cooperation with plantations, suppliers (mills and refineries) and third-party organizations. In addition, we will not take part in procurement activities that use high conservation value (HCV*1) forests, high carbon stock (HCS*2) forests or peatlands.[...] By 2020, work to obtain RSPO SCCS certification of Kao Group manufacturing sites in order to build a traceable supply chain for the group. " 2020 Update on this commitment - "Completed mill identification, deforestation monitoring for surrounding areas Continued investigation of high-risk mills Disclosure of mill list on website [...] Acquisition of RSPO SCCS certifications: Completed acquisition for group plants and offices within and outside Japan in 2018" 
          • Commitment to protect High Carbon Stock areas and/or peatlands
            Yes, for all commodity exposure
            1.7/1.7
            Commitment to protect High Carbon Stock areas and/or peatlands
            Yes, for all commodity exposure
            1.7/1.7
            "By 2020, adequately confirm zero deforestation at the source through cooperation with plantations, suppliers (mills and refineries) and third-party organizations. In addition, we will not take part in procurement activities that use high conservation value (HCV*1) forests, high carbon stock (HCS*2) forests or peatlands.[...] By 2020, work to obtain RSPO SCCS certification of Kao Group manufacturing sites in order to build a traceable supply chain for the group. " 2020 Update on this commitment - "Completed mill identification, deforestation monitoring for surrounding areas Continued investigation of high-risk mills Disclosure of mill list on website [...] Acquisition of RSPO SCCS certifications: Completed acquisition for group plants and offices within and outside Japan in 2018" 
          • Commitment to a traceable supply chain
            Yes, for all commodity exposure
            1.7/1.7
            Commitment to a traceable supply chain
            Yes, for all commodity exposure
            1.7/1.7
            "In 2019 - Completed traceability confirmation for large-scale palm plantations Continued traceability confirmation for small- and medium scale plantations [...] Conducted a pilot SUSTAIN survey for small oil palm farmers traceability by 2020."
        • Reporting is independently verified
          0/1
          • Commitment to protect priority forests
            Yes, using a third-party verification scheme or certification scheme.
            1/1
            Commitment to protect priority forests
            Yes, using a third-party verification scheme or certification scheme.
            1/1
            "By 2020, adequately confirm zero deforestation at the source through cooperation with plantations, suppliers (mills and refineries) and third-party organizations. In addition, we will not take part in procurement activities that use high conservation value (HCV*1) forests, high carbon stock (HCS*2) forests or peatlands.[...] By 2020, work to obtain RSPO SCCS certification of Kao Group manufacturing sites in order to build a traceable supply chain for the group. " 2020 Update on this commitment - "Completed mill identification, deforestation monitoring for surrounding areas Continued investigation of high-risk mills Disclosure of mill list on website [...] Acquisition of RSPO SCCS certifications: Completed acquisition for group plants and offices within and outside Japan in 2018" 
          • Commitment to protect High Carbon Stock areas and/or peatlands
            Yes, using a third-party verification scheme or certification scheme.
            1/1
            Commitment to protect High Carbon Stock areas and/or peatlands
            Yes, using a third-party verification scheme or certification scheme.
            1/1
            Which tools, approaches, third-party verification, including certification, schemes are used?: RSPO Certification 

            Which processes or groups does the company use for third party verification?: RSPO Certification 
            "By 2020, adequately confirm zero deforestation at the source through cooperation with plantations, suppliers (mills and refineries) and third-party organizations. In addition, we will not take part in procurement activities that use high conservation value (HCV*1) forests, high carbon stock (HCS*2) forests or peatlands.[...] By 2020, work to obtain RSPO SCCS certification of Kao Group manufacturing sites in order to build a traceable supply chain for the group. " 2020 Update on this commitment - "Completed mill identification, deforestation monitoring for surrounding areas Continued investigation of high-risk mills Disclosure of mill list on website [...] Acquisition of RSPO SCCS certifications: Completed acquisition for group plants and offices within and outside Japan in 2018" 
          • Commitment to a traceable supply chain
            No
            0/1
        • Suppliers aligned with deforestation commitments across supply chain
          Yes, required
          2/2
          Suppliers aligned with deforestation commitments across supply chain
          Yes, required
          2/2
          "Support zero deforestation at the source.・Request suppliers and their group companies to comply with NDPE*5 policy, and track their promotion status.・Prioritize purchases from suppliers that comply with the above NDPE policy and HCSA*6"
        • Deforestation cut off date
          Yes, for all sourcing regions/operations
          2/2
          Deforestation cut off date
          Yes, for all sourcing regions/operations
          2/2
          In the 2019 CDP Forests report published on the Kao website, Kao reported a cut off data of 2006 for palm oil.
        • Collaborative actions
          Yes
          2/2
          Collaborative actions
          Yes
          2/2
          What is the nature of that participation?: Attending & contributing to meetings; Providing support/advice/experience/expertise

          What initiatives does the company participate in?: SMILE initiative and working with local NGOs
          "Three leading companies in the palm oil industry – Kao Corporation, Apical Group, and Asian Agri – have launched a new sustainability initiative to help independent oil palm smallholders in Indonesia improve their yields, acquire international certification, and eventually secure sales premiums from selling certified palm oil. Known as SMILE or the SMallholder Inclusion for better Livelihood & Empowerment program"[...] "Kao is also collaborating with NGOs and local NPOs to implement questionnaire surveys and analysis regarding how effective the support being provided is in terms of boosting productivity and improving smallholders' working environment, and regarding any areas where further improvements could be made."
        • Risk assessments for forest risk
          Yes
          2/2
          Risk assessments for forest risk
          Yes
          2/2
          How frequently are assessments conducted?: Not specified 
          "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. "
        • Operations assessed to comply with law
          Yes
          2/2
          Operations assessed to comply with law
          Yes
          2/2
          "We also ensure that these guidelines are understood by all our suppliers and check their compliance through audits and other means"[...] "Implementation of measures to ensure compliance with laws and regulations and social norms"
        • Accessible grievance mechanism
          No
          0/4
        • Report volumes of commodity
          Reporting total volume
          2/2
          Report volumes of commodity
          Reporting total volume
          2/2
          Total/partial volume reported: 421,000 tonnes
          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.
        • Report verified volumes of commodity
          1-49%
          2/6
          Report verified volumes of commodity
          1-49%
          2/6
          What is the non-certified/non-compliant volume?: 343,300 tons

          What is the certified volume?: 77,700 tons

          For what percent of the company's supply volume is third-party verification of performance relative to commitments conducted?: 18%
          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.
        • Upstream: Monitor compliance with human rights
          Yes, commit to monitoring compliance with labour/worker rights
          2/4
          Upstream: Monitor compliance with human rights
          Yes, commit to monitoring compliance with labour/worker rights
          2/4
          In their Supplier's Assessment Guidelines they mention labour rights and also say-"We also ensure that these guidelines are understood by all our suppliers and check their compliance through audits and other means"
        • Downstream: Publishing supplier lists
          No
          0/4
        • Downstream: Monitor compliance in supply chain
          Yes, for its suppliers
          3/4
          Downstream: Monitor compliance in supply chain
          Yes, for its suppliers
          3/4
          How frequently is compliance assessed?: Annually

          Details of monitoring: Using internal monitoring and verification systems
          "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. "
        • Downstream: Reporting hectares of deforestation
          No
          0/4
        • Downstream: Engagement with non-compliant suppliers
          Engage with suppliers but with no time-bound threat of exclusion
          1/2
          Downstream: Engagement with non-compliant suppliers
          Engage with suppliers but with no time-bound threat of exclusion
          1/2
          Does the company engage non-compliant indirect suppliers in order to address and remedy non-compliance?: No

          What type of support does the company offer to its suppliers to help them achieve compliance with commitments?: Not disclosed 
          "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."
        • Downstream: Disclosure of non-compliant suppliers
          Yes, engaged
          1/2
          Downstream: Disclosure of non-compliant suppliers
          Yes, engaged
          1/2
          Does the company have a list of blacklisted or otherwise excluded suppliers or producers?: No
          "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."
    • Pulp & Paper
      51/88
      • Commitment Strength
        18/20
        • Commitment to protect priority forests
          6/8
          • Commitment details
            Zero-gross deforestation
            4/6
            Commitment to protect priority forests
            Zero-gross deforestation
            4/6
            Which certification schemes are used?: FSC
            "By 2020, Kao commits to zero deforestation at the source of wood fiber for raw materials."[...] By 2020, Kao will purchase only recycled paper or sustainably sourced paper and pulp for use in its consumer products, packaging and office paper. [...] Third-party certification must be obtained that the paper and pulp were produced under proper management, such as forest certification from the FSC'' , PEFC2 or other reliable certification body."
          • Commitment applies to all regions, suppliers and operation
            Yes
            1.3/1.3
            Commitment applies to all regions, suppliers and operation
            Yes
            1.3/1.3
            "By 2020, Kao commits to zero deforestation at the source of wood fiber for raw materials."[...] By 2020, Kao will purchase only recycled paper or sustainably sourced paper and pulp for use in its consumer products, packaging and office paper. [...] Third-party certification must be obtained that the paper and pulp were produced under proper management, such as forest certification from the FSC'' , PEFC2 or other reliable certification body."
          • Target date
            Current/achieved
            0.7/0.7
            Target date
            Current/achieved
            0.7/0.7
            "By 2020, Kao commits to zero deforestation at the source of wood fiber for raw materials."[...] By 2020, Kao will purchase only recycled paper or sustainably sourced paper and pulp for use in its consumer products, packaging and office paper. [...] Third-party certification must be obtained that the paper and pulp were produced under proper management, such as forest certification from the FSC'' , PEFC2 or other reliable certification body."
          • Interim target date
            NA (target date current or achieved or 2022)
            0.3/0.3
            Interim target date
            NA (target date current or achieved or 2022)
            0.3/0.3
            "By 2020, Kao commits to zero deforestation at the source of wood fiber for raw materials."[...] By 2020, Kao will purchase only recycled paper or sustainably sourced paper and pulp for use in its consumer products, packaging and office paper. [...] Third-party certification must be obtained that the paper and pulp were produced under proper management, such as forest certification from the FSC'' , PEFC2 or other reliable certification body."
        • Commitment to reduce use of virgin wood fibre
          5/5
          • Commitment details
            Yes
            3/3
            Commitment to reduce use of virgin wood fibre
            Yes
            3/3
            Type of commitment: Recycled content
             "By 2020, Kao will purchase only recycled paper or sustainably sourced paper and pulp for use in its consumer products, packaging and office paper. [...] Third-party certification must be obtained that the paper and pulp were produced under proper management, such as forest certification from the FSC'' , PEFC2 or other reliable certification body."
          • Commitment applies to all regions, suppliers and operation
            Yes
            1.3/1.3
            Commitment applies to all regions, suppliers and operation
            Yes
            1.3/1.3
            "By 2020, Kao will purchase only recycled paper or sustainably sourced paper and pulp for use in its consumer products, packaging and office paper. [...] Third-party certification must be obtained that the paper and pulp were produced under proper management, such as forest certification from the FSC'' , PEFC2 or other reliable certification body."
          • Target date
            Current/achieved
            0.7/0.7
            Target date
            Current/achieved
            0.7/0.7
            "By 2020, Kao will purchase only recycled paper or sustainably sourced paper and pulp for use in its consumer products, packaging and office paper. [...] Third-party certification must be obtained that the paper and pulp were produced under proper management, such as forest certification from the FSC'' , PEFC2 or other reliable certification body."
          • Interim target date
            NA (target date current or achieved or 2022)
            0.3/0.3
            Interim target date
            NA (target date current or achieved or 2022)
            0.3/0.3
            "By 2020, Kao will purchase only recycled paper or sustainably sourced paper and pulp for use in its consumer products, packaging and office paper. [...] Third-party certification must be obtained that the paper and pulp were produced under proper management, such as forest certification from the FSC'' , PEFC2 or other reliable certification body."
        • Commitment to a traceable supply chain
          6/6
          • Commitment details
            Traces to Point of production
            4/4
            Commitment to a traceable supply chain
            Traces to Point of production
            4/4
            "Through purchase of certified products and WWF Japan's 'Check list for forest products supply'. raw materials are tracked starting from the Tier-1 suppliers and original forest is identified. And the original forest is checked whether it is used in consideration of social. environmental and economic sustainability. Almost all traceability was confirmed in light of certified products (86%) and the check list in the end of 2018."
          • Commitment applies to all regions, suppliers and operation
            Yes
            1.3/1.3
            Commitment applies to all regions, suppliers and operation
            Yes
            1.3/1.3
            "Through purchase of certified products and WWF Japan's 'Check list for forest products supply'. raw materials are tracked starting from the Tier-1 suppliers and original forest is identified. And the original forest is checked whether it is used in consideration of social. environmental and economic sustainability. Almost all traceability was confirmed in light of certified products (86%) and the check list in the end of 2018."
          • Target date
            Current/achieved
            0.7/0.7
            Target date
            Current/achieved
            0.7/0.7
            "Through purchase of certified products and WWF Japan's 'Check list for forest products supply'. raw materials are tracked starting from the Tier-1 suppliers and original forest is identified. And the original forest is checked whether it is used in consideration of social. environmental and economic sustainability. Almost all traceability was confirmed in light of certified products (86%) and the check list in the end of 2018."
          • Interim target date
            NA (target date current or achieved or 2022)
            0.3/0.3
            Interim target date
            NA (target date current or achieved or 2022)
            0.3/0.3
            "Through purchase of certified products and WWF Japan's 'Check list for forest products supply'. raw materials are tracked starting from the Tier-1 suppliers and original forest is identified. And the original forest is checked whether it is used in consideration of social. environmental and economic sustainability. Almost all traceability was confirmed in light of certified products (86%) and the check list in the end of 2018."
      • Social Considerations
        8/18
        • Labour rights in the supply chain
          Yes
          4/4
          Labour rights in the supply chain
          Yes
          4/4
          Details of commitment: ILO; Discrimination; Forced labour; Child labour; Freedom of association
          "we support and respect ... 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 discrimination in respect of employment and occupation)..." "We are committed to not violating human rights, including the prohibition of human trafficking, forced labor, child labor and all forms of discrimination, as well as the freedom of association and the right to collective bargaining..."[...] ""In cases where adverse impacts on human rights by business partners, suppliers and other related parties are directly linked to our business, products or services, we require these business partners, suppliers and other related parties to respect human rights and not to violate them."
        • Inclusion of small-scale farmers
          No
          0/4
        • Gender equality in the supply chain
          No commitment
          0/4
        • Commitment to remediation
          No
          0/2
        • Commitment to ensure Free, Prior and Informed Consent
          Yes, the company commits to securing FPIC prior to acquiring new interests, developments, or expansions
          4/4
          Commitment to ensure Free, Prior and Informed Consent
          Yes, the company commits to securing FPIC prior to acquiring new interests, developments, or expansions
          4/4
          "In cases where adverse impacts on human rights by business partners, suppliers and other related parties are directly linked to our business, products or services, we require these business partners, suppliers and other related parties to respect human rights and not to violate them."[...] "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. "
        • Commitment to resolve land conflicts
          No
      • Reporting and Implementation
        25/50
        • Reporting against commitments
          2/2
          • Commitment to protect priority forests
            Yes, for all commodity exposure
            1.7/1.7
            Commitment to protect priority forests
            Yes, for all commodity exposure
            1.7/1.7
            "Kao aims to procure 100% recycled paper or certified paper considering sustainability by 2020. To this end, Kao has asked pulp and paper suppliers to provide certified paper in consideration of sustainability since 2013. At the time, few suppliers were able to provide certified paper and the introduction rate was as low as 3%. The rate reached 86% in 2018 by conveying Kao's procurement policy and encouraging suppliers to achieve CoC certification provided by organizations including FSC"
          • Commitment to reduce use of virgin wood fibre
            Yes, for all commodity exposure
            1.7/1.7
            Commitment to reduce use of virgin wood fibre
            Yes, for all commodity exposure
            1.7/1.7
            "Kao aims to procure 100% recycled paper or certified paper considering sustainability by 2020. To this end, Kao has asked pulp and paper suppliers to provide certified paper in consideration of sustainability since 2013. At the time, few suppliers were able to provide certified paper and the introduction rate was as low as 3%. The rate reached 86% in 2018 by conveying Kao's procurement policy and encouraging suppliers to achieve CoC certification provided by organizations including FSC"
          • Commitment to a traceable supply chain
            Yes, for all commodity exposure
            1.7/1.7
            Commitment to a traceable supply chain
            Yes, for all commodity exposure
            1.7/1.7
            "Through purchase of certified products and WWF Japan's 'Check list for forest products supply'. raw materials are tracked starting from the Tier-1 suppliers and original forest is identified. And the original forest is checked whether it is used in consideration of social. environmental and economic sustainability. Almost all traceability was confirmed in light of certified products (86%) and the check list in the end of 2018." In the 2019 CDP Forests report published on the Kao website, Kao reported that this target had been 100% achieved.
        • Reporting is independently verified
          1/1
          • Commitment to protect priority forests
            Yes, using a third-party verification scheme or certification scheme.
            1/1
            Commitment to protect priority forests
            Yes, using a third-party verification scheme or certification scheme.
            1/1
            Which tools, approaches, third-party verification, including certification, schemes are used?: FSC 

            Which processes or groups does the company use for third party verification?: FSC
            "By 2020, Kao commits to zero deforestation at the source of wood fiber for raw materials."[...] By 2020, Kao will purchase only recycled paper or sustainably sourced paper and pulp for use in its consumer products, packaging and office paper. [...] Third-party certification must be obtained that the paper and pulp were produced under proper management, such as forest certification from the FSC'' , PEFC2 or other reliable certification body."
          • Commitment to reduce use of virgin wood fibre
            No
            0/1
          • Commitment to a traceable supply chain
            No
            0/1
        • Suppliers aligned with deforestation commitments across supply chain
          No
          0/2
        • Deforestation cut off date
          No
          0/2
        • Collaborative actions
          Yes
          2/2
          Collaborative actions
          Yes
          2/2
          What initiatives does the company participate in?: FSC certified procurement declaration 2020
          "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."
        • Risk assessments for forest risk
          Yes
          2/2
          Risk assessments for forest risk
          Yes
          2/2
          How frequently are assessments conducted?: Every 3 years
          "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."
        • Operations assessed to comply with law
          Yes
          2/2
          Operations assessed to comply with law
          Yes
          2/2
          "We also ensure that these guidelines are understood by all our suppliers and check their compliance through audits and other means"[...] "Implementation of measures to ensure compliance with laws and regulations and social norms"
        • Accessible grievance mechanism
          No
          0/4
        • Report volumes of commodity
          Reporting total volume
          2/2
          Report volumes of commodity
          Reporting total volume
          2/2
          Total/partial volume reported: 234,000 tons
          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.
        • Report verified volumes of commodity
          80-99%
          4/6
          Report verified volumes of commodity
          80-99%
          4/6
          For what percent of the company's supply volume is third-party verification of performance relative to commitments conducted?: 86%

          What is the certified volume?: 201,240 tons

          What is the non-certified/non-compliant volume?: 32,760 tons
          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.
        • Upstream: Monitor compliance with human rights
          Yes, commit to monitoring compliance with labour/worker rights
          2/4
          Upstream: Monitor compliance with human rights
          Yes, commit to monitoring compliance with labour/worker rights
          2/4
          In their Supplier's Assessment Guidelines they mention labour rights and also say-"We also ensure that these guidelines are understood by all our suppliers and check their compliance through audits and other means"
        • Downstream: Publishing supplier lists
          No
          0/4
        • Downstream: Monitor compliance in supply chain
          Yes, for its suppliers
          3/4
          Downstream: Monitor compliance in supply chain
          Yes, for its suppliers
          3/4
          How frequently is compliance assessed?: Annually 

          Details of monitoring: Using internal monitoring and verification systems
          "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. "
        • Downstream: Reporting hectares of deforestation
          No
          0/4
        • Downstream: Engagement with non-compliant suppliers
          Engage with suppliers but with no time-bound threat of exclusion
          1/2
          Downstream: Engagement with non-compliant suppliers
          Engage with suppliers but with no time-bound threat of exclusion
          1/2
          Does the company engage non-compliant indirect suppliers in order to address and remedy non-compliance?: No
          "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."
        • Downstream: Disclosure of non-compliant suppliers
          Yes, excluded
          1/2
          Downstream: Disclosure of non-compliant suppliers
          Yes, excluded
          1/2
          Does the company have a list of blacklisted or otherwise excluded suppliers or producers?: No
          "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."
    • Soy *
      12/88
      • Commitment Strength
        0/20
        • Commitment to protect priority forests
          0/11
          • Commitment details
            No commitment
            0/8
          • Commitment applies to all regions, suppliers and operation
            No
            0/2
          • Target date
            No target date
            0/1
          • Interim target date
            No
            0/0.5
        • Commitment to a traceable supply chain
          0/9
          • Commitment details
            No traceability commitment
            0/5.3
          • Commitment applies to all regions, suppliers and operation
            No
            0/2
          • Target date
            No target date
            0/1
          • Interim target date
            No
            0/0.5
      • Social Considerations
        8/18
        • Labour rights in the supply chain
          Yes
          4/4
          Labour rights in the supply chain
          Yes
          4/4
          Details of commitment: ILO; Discrimination; Forced labour; Child labour; Freedom of association
          "we support and respect ... 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 discrimination in respect of employment and occupation)..." "We are committed to not violating human rights, including the prohibition of human trafficking, forced labor, child labor and all forms of discrimination, as well as the freedom of association and the right to collective bargaining..."[...] ""In cases where adverse impacts on human rights by business partners, suppliers and other related parties are directly linked to our business, products or services, we require these business partners, suppliers and other related parties to respect human rights and not to violate them."
        • Inclusion of small-scale farmers
          No
          0/4
        • Gender equality in the supply chain
          No commitment
          0/4
        • Commitment to remediation
          No
          0/2
        • Commitment to ensure Free, Prior and Informed Consent
          Yes, the company commits to securing FPIC prior to acquiring new interests, developments, or expansions
          4/4
          Commitment to ensure Free, Prior and Informed Consent
          Yes, the company commits to securing FPIC prior to acquiring new interests, developments, or expansions
          4/4
          "In cases where adverse impacts on human rights by business partners, suppliers and other related parties are directly linked to our business, products or services, we require these business partners, suppliers and other related parties to respect human rights and not to violate them."[...] "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. "
        • Commitment to resolve land conflicts
          No
      • Reporting and Implementation
        4/50
        • Reporting against commitments
          0/3
          • Commitment to protect priority forests
            No
            0/2.5
          • Commitment to a traceable supply chain
            No
            0/2.5
        • Reporting is independently verified
          0/2
          • Commitment to protect priority forests
            No
            0/1.5
          • Commitment to a traceable supply chain
            No
            0/1.5
        • Suppliers aligned with deforestation commitments across supply chain
          No
          0/2
        • Deforestation cut off date
          No
          0/2
        • Collaborative actions
          No
          0/2
        • Risk assessments for forest risk
          No
          0/2
        • Operations assessed to comply with law
          Yes
          2/2
          Operations assessed to comply with law
          Yes
          2/2
          "We also ensure that these guidelines are understood by all our suppliers and check their compliance through audits and other means"[...] "Implementation of measures to ensure compliance with laws and regulations and social norms"
        • Accessible grievance mechanism
          No
          0/4
        • Report volumes of commodity
          No reporting
          0/2
        • Report verified volumes of commodity
          No disclosure
          0/6
        • Upstream: Monitor compliance with human rights
          Yes, commit to monitoring compliance with labour/worker rights
          2/4
          Upstream: Monitor compliance with human rights
          Yes, commit to monitoring compliance with labour/worker rights
          2/4
          In their Supplier's Assessment Guidelines they mention labour rights and also say-"We also ensure that these guidelines are understood by all our suppliers and check their compliance through audits and other means"
        • Downstream: Publishing supplier lists
          No
          0/4
        • Downstream: Monitor compliance in supply chain
          No
          0/4
        • Downstream: Reporting hectares of deforestation
          No
          0/4
        • Downstream: Engagement with non-compliant suppliers
          No engagement or exclusion
          0/2
        • Downstream: Disclosure of non-compliant suppliers
          No disclosure
          0/2
  • * commodity scores for which a company is not a powerbroker are given half the weighting of other commodities in total scores

  • Commitment strength
    14/20
    Avg. score
  • Reporting and Implementation
    22/50
    Avg. score
  • Social considerations
    10/18
    Avg. score

Profile

Kao Corporation is a Japanese consumer goods company that manufactures beauty, health and home care products, whilst also providing chemicals to industrial markets. The company owns well-known brands such as Molton Brown, John Freida and Merries. Kao Corp is exposed to palm oil and soy, which are used in its consumer products, and also to pulp and paper which feature in both the company’s products and its packaging. Kao Corp. is selected as a powerbroker for palm oil and paper packaging and is also assessed for its exposure to soy.

Sector
Industry sector 
Cosmetics, Personal care, Home care, Chemicals
Segments
Manufacturer
HQ
HQ 
Japan
Company Type
Company type 
Public listed
Collective Commitments
Consumer Goods Forum member
New York Declaration on Forests signatory

Top Brands

Est, Sofina iP, Curel, SUQQU, KATE, SENSAI, Molten Brown, Biore, Biore-u, Jergens, Merit, Essential, Rerise, John Frieda, Goldwell, Oribe, Merries, Relief, Laurier, Foshu, PureOra, Bub, MegRhythm, Flair Frangrance, Cucute, Magiclean, Attack

How we assess the Forest 500

To ensure deforestation free supply chains, companies need to adopt and implement timebound and measurable policies for forest risk commodities.

All assessments use policies published on company websites, some links may have changed or been removed since the time of assessment.

Disclaimer

This assessment has been carried out following the methodology developed for the Forest 500 project, available here. Please see our disclaimer applicable to all information contained within this site and our terms and conditions for use of data presented on this site.

All assessments use policies published on company and financial institution websites, and while we endeavor to keep them updated some links may have changed or been removed since the time of assessment.

Please contact us with any concerns or feedback about this or other assessments included in the Forest 500.