Kao Corp.

"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."

Kao Corp - As a member of The Consumer Goods Forum(CGF), The UN Global Compact, The New York Declaration on Forests 

"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"

"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. "

"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"

"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."

 "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."

 " 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)"

"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""