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  • Overall approach
    4/16
    • Overarching commitment on deforestation
      0/6
      Deforestation commitment
      No overarching deforestation commitment
      0/6
      Commodities (if applicable): 0
      "Kao commits to zero deforestation at the source in its procurement of raw materials including palm oil and paper."
    • Signatory to an initiative tackling deforestation
      1/1
      Signatory
      Yes
      1/1
      Which initiatives?: Consumer Goods Forum; New York Declaration on Forests; UN Global Compact
      Kao CorpAs 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
      Awareness
      Yes
      1/1
      "No conversion of High Conservation Value areas".
    • Deforestation as a business risk
      1/1
      Business risk
      Yes
      1/1
      Does the company recognise the risk as financial, operational, competition, reputational, or other? Please detail.: Reputation
      "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
      High-level management
      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
      Deforestation is part of the companies' ESG strategy - "The ESG Committee discusses and decides on the overall direction of activities related to our ESG strategy. The committee is chaired by the President and Chief Executive Officer, and its members include Senior Managing Executive and Managing Executive Officers. The committee formulates policies and strategies that are related to ESG activities, identifies ESG issues, risks, and opportunities, and examines the current state of ESG activities. The ESG External Advisory Board consists of outside experts, and gives advice and recommendations to the ESG Committee to bring external perspectives to the management of the company. [...] We understand that our business depends on natural capital, and that a natural resource-dependent supply chain entails a risk of damage to that capital. We commit to zero deforestation at the source in our procurement of raw materials including palm oil and paper."
    • Executive compensation linked to deforestation
      Yes for at least one commodity
      0/0
      Which commodities does the committee focus on?: Palm oil; Pulp & Paper

      Does it disclose the percentage of pay at risk?: Yes
      "Performance-based share incentive plan as long-term incentive compensation Within a four-year target period from FY2017 to FY2020, the period covered by the current mid-term plan, Kao shares, etc., are delivered to Directors, other than Outside Directors and Executive Officers in accordance with the degree of mid-term plan target achievements and non-financial target achievements from an ESG perspective. [...] The performance-based part accounts for 70% of shares delivered, with the fixed part accounting for 30%. When the performance-based coefficient for the performance-based part of the system is at 100%, the yearly share remuneration amount is set at nearly 40% to 50% of the base salary." [...] "2020 mid-term targets 1. Promoting the sustainable procurement of raw materials With the goal of realizing zero deforestation, we are aiming to switch to procuring palm oil, paper and pulp from sustainable sources by 2020. "
    • Target to reduce emissions from land-use change
      0/3
    • Reporting on emissions from land-use change
      0/3
    • 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)"
  • Commodity score
    44/84
    • Palm oil
      58/84
      • Commitment Strength
        26/28
        • Commitment to protect priority forests
          10/12
          • Commitment details
            Zero-gross deforestation
            6/8
            Commitment to protect priority forests
            Zero-gross deforestation
            6/8
            Which certification schemes are used?: RSPO
            "By 2020, Kao commits to zero deforestation at the source of palm oil through cooperation with plantations, suppliers (mills and refineries) and third-party organizations. We will not purchase palm oil that contributes to development of any high conservation value (HM) forests, high carbon stock (HCS) forests or peatlands, regardless of the depth." "By 2020. Kao will work to obtain RSPO" SCCS' certification of Kao Group factories in order to build a traceable supply chain for the Kao Group."
          • Commitment applies to all regions, suppliers and operation
            Yes
            2/2
            Commitment applies to all regions, suppliers and operation
            Yes
            2/2
            "By 2020, Kao commits to zero deforestation at the source of palm oil through cooperation with plantations, suppliers (mills and refineries) and third-party organizations. We will not purchase palm oil that contributes to development of any high conservation value (HM) forests, high carbon stock (HCS) forests or peatlands, regardless of the depth." "By 2020. Kao will work to obtain RSPO" SCCS' certification of Kao Group factories in order to build a traceable supply chain for the Kao Group."
          • Target date
            Current/2020/Pre-2020
            1.3/1.3
            Target date
            Current/2020/Pre-2020
            1.3/1.3
            "By 2020, Kao commits to zero deforestation at the source of palm oil through cooperation with plantations, suppliers (mills and refineries) and third-party organizations. We will not purchase palm oil that contributes to development of any high conservation value (HM) forests, high carbon stock (HCS) forests or peatlands, regardless of the depth." "By 2020. Kao will work to obtain RSPO" SCCS' certification of Kao Group factories in order to build a traceable supply chain for the Kao Group."
          • Interim target date
            Yes
            0.7/0.7
            Interim target date
            Yes
            0.7/0.7
            What date is given for the interim milestone(s)?: 2020
            "By 2020, Kao commits to zero deforestation at the source of palm oil through cooperation with plantations, suppliers (mills and refineries) and third-party organizations. We will not purchase palm oil that contributes to development of any high conservation value (HM) forests, high carbon stock (HCS) forests or peatlands, regardless of the depth." "By 2020. Kao will work to obtain RSPO" SCCS' certification of Kao Group factories in order to build a traceable supply chain for the Kao Group."
        • Commitment to protect High Carbon Stock areas and/or peatlands
          8/8
          • Commitment details
            Yes
            4/4
            Commitment to protect High Carbon Stock areas and/or peatlands
            Yes
            4/4
            Type of commitment: HCS; Peat
            "By 2020, Kao commits to zero deforestation at the source of palm oil through cooperation with plantations, suppliers (mills and refineries) and third-party organizations. We will not purchase palm oil that contributes to development of any high conservation value (HM) forests, high carbon stock (HCS) forests or peatlands, regardless of the depth." "By 2020. Kao will work to obtain RSPO" SCCS' certification of Kao Group factories in order to build a traceable supply chain for the Kao Group."
          • Commitment applies to all regions, suppliers and operation
            Yes
            2/2
            Commitment applies to all regions, suppliers and operation
            Yes
            2/2
            "By 2020, Kao commits to zero deforestation at the source of palm oil through cooperation with plantations, suppliers (mills and refineries) and third-party organizations. We will not purchase palm oil that contributes to development of any high conservation value (HM) forests, high carbon stock (HCS) forests or peatlands, regardless of the depth." "By 2020. Kao will work to obtain RSPO" SCCS' certification of Kao Group factories in order to build a traceable supply chain for the Kao Group."
          • Target date
            Current/2020/Pre-2020
            1.3/1.3
            Target date
            Current/2020/Pre-2020
            1.3/1.3
            "By 2020, Kao commits to zero deforestation at the source of palm oil through cooperation with plantations, suppliers (mills and refineries) and third-party organizations. We will not purchase palm oil that contributes to development of any high conservation value (HM) forests, high carbon stock (HCS) forests or peatlands, regardless of the depth." "By 2020. Kao will work to obtain RSPO" SCCS' certification of Kao Group factories in order to build a traceable supply chain for the Kao Group."
          • Interim target date
            Yes
            0.7/0.7
            Interim target date
            Yes
            0.7/0.7
            What date is given for the interim milestone(s)?: 2020
            "By 2020, Kao commits to zero deforestation at the source of palm oil through cooperation with plantations, suppliers (mills and refineries) and third-party organizations. We will not purchase palm oil that contributes to development of any high conservation value (HM) forests, high carbon stock (HCS) forests or peatlands, regardless of the depth." "By 2020. Kao will work to obtain RSPO" SCCS' certification of Kao Group factories in order to build a traceable supply chain for the Kao Group."
        • Commitment to a traceable supply chain
          8/8
          • 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
            2/2
            Commitment applies to all regions, suppliers and operation
            Yes
            2/2
            "By 2020, purchase only sustainably sourced palm oil that is traceable to the plantation for use in Kao Group consumer products"
          • Target date
            Current/2020/Pre-2020
            1.3/1.3
            Target date
            Current/2020/Pre-2020
            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"
          • Interim target date
            Yes
            0.7/0.7
            Interim target date
            Yes
            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"
      • Social Considerations
        12/18
        • Labour rights in the supply chain
          Yes
          4/4
          Labour rights in the supply chain
          Yes
          4/4
          Details of commitment: Discrimination; Forced Labour; Child Labour; Freedom of association
          "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)"
        • 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
          "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."
        • Commitment to ensure Free, Prior and Informed Consent
          Yes the company commits to securing FPIC prior to acquiring new interests/developments/expansions
          2/4
          Commitment to ensure Free, Prior and Informed Consent
          Yes the company commits to securing FPIC prior to acquiring new interests/developments/expansions
          2/4
          "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. "
      • Reporting and Implementation
        20/38
        • Reporting against commitments
          6/6
          • Commitment to protect priority forests
            Yes
            2/2
            Commitment to protect priority forests
            Yes
            2/2
            "By 2020. Kao will work to obtain RSPO" SCCS' certification of Kao Group factories in order to build a traceable supply chain for the Kao Group." In the 2019 CDP Forests report published on the Kao website, Kao reported that this target had been 100% achieved.
          • Commitment to protect High Carbon Stock areas and/or peatlands
            Yes
            2/2
            Commitment to protect High Carbon Stock areas and/or peatlands
            Yes
            2/2
            Does the company report on the degree of compliance/progress with commitments, disaggregated by relevant factors such as origin or supply chain stage?: No
            "By 2020. Kao will work to obtain RSPO" SCCS' certification of Kao Group factories in order to build a traceable supply chain for the Kao Group." In the 2019 CDP Forests report published on the Kao website, Kao reported that this target had been 100% achieved
          • Commitment to a traceable supply chain
            Yes
            2/2
            Commitment to a traceable supply chain
            Yes
            2/2
            Does the company report on the degree of compliance/progress with commitments, disaggregated by relevant factors such as origin or supply chain stage?: Yes
            "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
          3/4
          • Commitment to protect priority forests
            Yes: third-party
            1.3/1.3
            Commitment to protect priority forests
            Yes: third-party
            1.3/1.3
            Which processes or groups does the company use for third party verification?: RSPO
            In 2019, Kao Corp reported 20% of their total consumption of palm oil was RSPO certified
          • Commitment to protect High Carbon Stock areas and/or peatlands
            Yes: third-party
            1.3/1.3
            Commitment to protect High Carbon Stock areas and/or peatlands
            Yes: third-party
            1.3/1.3
            Which tools, approaches, third-party verification, including certification, schemes are used?: Certification scheme
            "By 2020. Kao will work to obtain RSPO" SCCS' certification of Kao Group factories in order to build a traceable supply chain for the Kao Group." In the 2019 CDP Forests report published on the Kao website, Kao reported that this target had been 100% achieved
          • Commitment to a traceable supply chain
            No
            0/1.3
        • Deforestation cut off date
          Yes
          2/2
          Deforestation cut off date
          Yes
          2/2
          Cut-off date: 2006
          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

          What initiatives does the company participate in?: a meeting with local NGOs
        • 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
          No
          0/2
        • Accessible grievance mechanism
          No
          0/4
        • Report volumes of commodity
          Reporting non-certified/non-compliant volume; Reporting certified/compliant volume
          4/4
          Report volumes of commodity
          Reporting non-certified/non-compliant volume; Reporting certified/compliant volume
          4/4
          What is the certified volume?: 77,700 tons

          What is the non-certified/non-compliant volume?: 343,300 tons

          Which certification schemes are used?: RSPO
          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.
        • Downstream: Publishing supplier lists
          No disclosure
          0/4
        • Downstream: Monitor compliance in supply chain
          Yes for its suppliers only
          3/4
          Downstream: Monitor compliance in supply chain
          Yes for its suppliers only
          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: 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

          What criteria does the policy specify for blacklisting or exclusion?: 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
      49/84
      • Commitment Strength
        26/28
        • Commitment to protect priority forests
          10/12
          • Commitment details
            Zero-gross deforestation
            6/8
            Commitment to protect priority forests
            Zero-gross deforestation
            6/8
            Which certification schemes are used?: FSC
            "Kao aims at 100% certified paper by 2025 [...] 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
            2/2
            Commitment applies to all regions, suppliers and operation
            Yes
            2/2
            "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/2020/Pre-2020
            1.3/1.3
            Target date
            Current/2020/Pre-2020
            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."
          • Interim target date
            Yes
            0.7/0.7
            Interim target date
            Yes
            0.7/0.7
            What date is given for the interim milestone(s)?: 2020
        • Commitment to reduce use of virgin wood fibre
          8/8
          • Commitment details
            Yes
            4/4
            Commitment to reduce use of virgin wood fibre
            Yes
            4/4
            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
            2/2
            Commitment applies to all regions, suppliers and operation
            Yes
            2/2
            "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/2020/Pre-2020
            1.3/1.3
            Target date
            Current/2020/Pre-2020
            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."
          • Interim target date
            Yes
            0.7/0.7
            Interim target date
            Yes
            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."
        • Commitment to a traceable supply chain
          8/8
          • 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
            2/2
            Commitment applies to all regions, suppliers and operation
            Yes
            2/2
            "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/2020/Pre-2020
            1.3/1.3
            Target date
            Current/2020/Pre-2020
            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."
          • Interim target date
            Yes
            0.7/0.7
            Interim target date
            Yes
            0.7/0.7
            What date is given for the interim milestone(s)?: current
            "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
        6/18
        • Labour rights in the supply chain
          Yes
          4/4
          Labour rights in the supply chain
          Yes
          4/4
          Details of commitment: Discrimination; Forced Labour; Child Labour; Freedom of association
          "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)"
        • 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/expansions
          2/4
          Commitment to ensure Free, Prior and Informed Consent
          Yes the company commits to securing FPIC prior to acquiring new interests/developments/expansions
          2/4
          "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. "
      • Reporting and Implementation
        17/38
        • Reporting against commitments
          6/6
          • Commitment to protect priority forests
            Yes
            2/2
            Commitment to protect priority forests
            Yes
            2/2
            "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
            2/2
            Commitment to reduce use of virgin wood fibre
            Yes
            2/2
            "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
            2/2
            Commitment to a traceable supply chain
            Yes
            2/2
            "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
          1/4
          • Commitment to protect priority forests
            Yes: third-party
            1.3/1.3
            Commitment to protect priority forests
            Yes: third-party
            1.3/1.3
            Which processes or groups does the company use for third party verification?: FSC Certification
            "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
            0/1.3
          • Commitment to a traceable supply chain
            No
            0/1.3
        • 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
          No
          0/2
        • Accessible grievance mechanism
          No
          0/4
        • Report volumes of commodity
          Reporting non-certified/non-compliant volume; Reporting certified/compliant volume
          4/4
          Report volumes of commodity
          Reporting non-certified/non-compliant volume; Reporting certified/compliant volume
          4/4
          What is the certified volume?: 201,240 tons

          What is the non-certified/non-compliant volume?: 32,760 tons

          Which certification schemes are used?: FSC
          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.
        • Downstream: Publishing supplier lists
          No disclosure
          0/4
        • Downstream: Monitor compliance in supply chain
          Yes for its suppliers only
          3/4
          Downstream: Monitor compliance in supply chain
          Yes for its suppliers only
          3/4
          Details of monitoring: Using internal monitoring and verification systems

          How frequently is compliance assessed?: Annually
          "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: 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 *
      6/84
      • Commitment Strength
        0/28
        • Commitment to protect priority forests
          0/17
          • Commitment details
            No commitment
            0/10.7
            Commitment to protect priority forests
            No commitment
            0/10.7
            (For downstream soy companies only) Does the company commitment also apply to hidden/indirect soy?: Supply chain includes no indirect soy
          • Commitment applies to all regions, suppliers and operation
            No
            0/3
          • Target date
            No target date
            0/2
          • Interim target date
            No
            0/1
        • Commitment to a traceable supply chain
          0/11
          • Commitment details
            No traceability commitment
            0/5.3
          • Commitment applies to all regions, suppliers and operation
            No
            0/3
          • Target date
            No target date
            0/2
          • Interim target date
            No
            0/1
      • Social Considerations
        6/18
        • Labour rights in the supply chain
          Yes
          4/4
          Labour rights in the supply chain
          Yes
          4/4
          Details of commitment: Discrimination; Forced Labour; Child Labour; Freedom of association
          "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)"
        • 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/expansions
          2/4
          Commitment to ensure Free, Prior and Informed Consent
          Yes the company commits to securing FPIC prior to acquiring new interests/developments/expansions
          2/4
          "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. "
      • Reporting and Implementation
        0/38
        • Reporting against commitments
          0/6
          • Commitment to protect priority forests
            No
            0/3
          • Commitment to a traceable supply chain
            No
            0/3
        • Reporting is independently verified
          0/4
          • Commitment to protect priority forests
            No
            0/2
          • Commitment to a traceable 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
          No
          0/2
        • Accessible grievance mechanism
          No
          0/4
        • Report volumes of commodity
          No reporting
          0/4
        • Downstream: Publishing supplier lists
          No disclosure
          0/4
        • Downstream: Monitor compliance in supply chain
          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
    21/28
    Avg. score
  • Reporting and Implementation
    15/38
    Avg. score
  • Social considerations
    8/18
    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.