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  • Overall approach
    7/10
    • Overarching commitment on deforestation
      3/4
      Overall commitment
      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
      Do they have a commitment for other non-Forest 500 commodities, if so which?: na
      "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
      Signatory
      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
      Awareness
      Yes
      1/1
      "preservation of biodiversity, high conservation value forests high carbon stock forests and peatland"
    • Deforestation as a business risk
      1/1
      Business risk
      Yes
      1/1
      What proportion of revenue that comes from relevant industries is exposed to each forest risk commodity?: Timber: 83%, Palm Oil: 80%

      What poportion of a company’s annual revenue depends on each forest risk commodity?: Timber: 83%, Palm Oil: 80%

      What type of risk is recognised?: Financial; Reputational

      What revenue comes from industries relevant to each forest risk commodity?: Timber: 83%, Palm Oil: 80%
      "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
      "Monitoring implementation and performance, Reviewing and guiding risk management policies: The functions of these two governance mechanisms into which forest-related issues are integrated are covered by the two sub Committees of Internal Control Committee (chairman is CEO) held more than once in Kao. The contents were supervised by the Board and deliberated once in 2020. "
    • Executive compensation linked to deforestation
      Executive compensation
      Yes, for all commodities
      0/0
      Does it disclose the percentage of pay at risk?: Yes
      "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
      0/1
    • Reporting on emissions from land-use change
      0/1
    • Disclosure of conservation activity
      Conservation disclosure
      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?: 44 hectares
      "Kao conduct an environmental conservation project in northern Thailand with partnership of OISCA"
    • Disclosure of reforestation activity
      Reforestation disclosure
      Yes
      0/0
      How many hectares of reforestation or restoration are being or have been conducted or facilitated by the company?: 44 ha
      "Kao conduct an environmental conservation project in northern Thailand with partnership of OISCA [...] sipporting afforestation"
    • Target to reduce emissions in scope 1/2
      Reduce emissions
      Yes
      0/0
      Is this target aligned with/verified by SBTi?: Yes

      Type of climate target: Net-zero emissions

      What is the target date for the company to achieve their climate target?: 2040
      "Reduce Its CO2 Emissions to Zero by 2040, and to Be Carbon Negative by 2050 [...] By 2030, Kao will have reduced Scope 1+2*2 CO2 emissions (absolute value) by 55% (taking 2017 as the base year)"
  • Commodity score
    43/90
    • Palm oil
      51/90
      • Commitment Strength
        15/17
        • Commodity-specific deforestation commitment
          7/9.5
          • Commitment details
            Zero-gross deforestation
            4/6
            Commodity-specific deforestation commitment
            Zero-gross deforestation
            4/6
            Does the company have a commitment to the protection of other specific named ecosystems?: HCS; Peat

            Which certification schemes are used?: RSPO

            When was this commitment set?: NA
            ""We are also committed to sustainable procurement based on the “High-Risk” Supply Chain Management and Sourcing. We pursue zero deforestation at the source in our procurement of raw materials including palm oil and paper. We support the NDPE* and request that suppliers and supplier group companies comply with it." [...] "We support the principles of NDPE [...] palm oil procurement initiatives [...] we aim to procure 100% RSPO-certified palm oil used by the Kao Group by 2025"
          • Commitment applies to all regions, suppliers and operation
            Yes
            2/2
            Commitment applies to all regions, suppliers and operation
            Yes
            2/2
            ""We are also committed to sustainable procurement based on the “High-Risk” Supply Chain Management and Sourcing. We pursue zero deforestation at the source in our procurement of raw materials including palm oil and paper. We support the NDPE* and request that suppliers and supplier group companies comply with it." [...] "We support the principles of NDPE [...] palm oil procurement initiatives [...] we aim to procure 100% RSPO-certified palm oil used by the Kao Group by 2025"
          • Target date
            2025
            0.8/1
            Target date
            2025
            0.8/1
            What actions or steps are identified for time-bound implementation?: 100% RSPO certified
            "We support the principles of NDPE [...] palm oil procurement initiatives [...] we aim to procure 100% RSPO-certified palm oil used by the Kao Group by 2025"
          • Interim target date
            Yes
            0.5/0.5
            Interim target date
            Yes
            0.5/0.5
            What date is given for the interim milestone?: 2020
            "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
          7/7.5
          • Commitment details
            Traces to Point of production
            4/4
            Commitment to a traceable supply chain
            Traces to Point of production
            4/4
            When was this commitment set?: 2022
            "we aim to complete 100% traceability back to oil palm smallholders by 2025"
          • Commitment applies to all regions, suppliers and operation
            Yes
            2/2
            Commitment applies to all regions, suppliers and operation
            Yes
            2/2
            "we aim to complete 100% traceability back to oil palm smallholders by 2025"
          • Target date
            2025
            0.8/1
            Target date
            2025
            0.8/1
            What actions or steps are identified for time-bound implementation?: 100% traceability back to oil palm smallholders by 2025
            "we aim to complete 100% traceability back to oil palm smallholders by 2025"
          • Interim target date
            NA (target date current or achieved or 2023)
            0.5/0.5
            Interim target date
            NA (target date current or achieved or 2023)
            0.5/0.5
            What date is given for the interim milestone?: 2020
            "By 2020, purchase only sustainably sourced palm oil that is traceable to the plantation for use in Kao Group consumer products"
      • Associated Human Rights Abuses
        11/17
        • Labour rights in the supply chain
          Yes
          3/3
          Labour rights in the supply chain
          Yes
          3/3
          Details of commitment: ILO; Discrimination; Forced labour; Child labour; Freedom of association

          How far back in the supply chain does this commitment apply?: Their direct suppliers
          "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
          2/2
          Inclusion of small-scale farmers
          Yes
          2/2
          How many smallholders do they support, and what percentage does this represent in terms of their sourcing from smallholders?: NA

          What is the nature of that support?: Technical assistance/support; Education and training, Economic
          "provide direct on-site assistance (trough training programs [...] we are providing assistance too independent oil palm smallholders in Indonesia from 2021-2030 [...] we aim to complete 100% traceability back to oil palm smallholders by 2025"
        • Gender equality in the supply chain
          No commitment
          0/2
        • Commitment to remediation
          Yes
          1/1
          Commitment to remediation
          Yes
          0.5/1
          What does the commitment cover?: 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 test Free, Prior and Informed Consent
          Yes, the company commits to test for FPIC prior to acquiring new interests, developments, or expansions
          2/3
          Commitment to test Free, Prior and Informed Consent
          Yes, the company commits to test for FPIC prior to acquiring new interests, developments, or expansions
          2/3
          How far back in the supply chain does this commitment apply?: suppliers
          "Principles for Action [...] guarantee [...] FPIC"
        • Commitment to respect customary rights to land, resources, and territory
          No
          0/3
        • Zero-tolerance approach to violence and threats
          Yes
          3/3
          Zero-tolerance approach to violence and threats
          Yes
          3/3
          "We have a zero-tolerance policy in place for our supply chains regarding violence, criminalization or intimidation of Human Rights Defenders (HRDs). We also take appropriate action against non-compliant suppliers in accordance with our corporate protocols, including the option of terminating business contracts."
      • Implementation and Reporting
        26/56
        • Reporting proportion of compliant volumes
          0/0
        • Reporting is independently verified
          Yes, using a third-party verification scheme or certification scheme
          0/2
          Reporting is independently verified
          Yes, using a third-party verification scheme or certification scheme
          0/2
          For what percent of the company's supply volume is third-party verification of performance relative to commitments conducted?: 27%

          Is the performance of compliance of some suppliers, sources, or origins not verified, and if so why not?: Currently only 27% is RSPO certified, target is 100%

          What percent of the company's supply volume is verified using company verification systems?: na

          What methods are used for verification?: RSPO

          Which processes or groups does the company use for third party verification?: RSPO

          Which tools, approaches, third-party verification, including certification, schemes are used?: RSPO
        • Suppliers aligned with deforestation commitments across supply chain
          Yes, required
          3/3
          Suppliers aligned with deforestation commitments across supply chain
          Yes, required
          3/3
          "we support the principles of NDPE and require that all our third-party suppliers and their corporate groups have adopted the NDPE policies"
        • Deforestation cut off date
          Yes, for all sourcing regions/operations
          2/2
          Deforestation cut off date
          Yes, for all sourcing regions/operations
          2/2
          What cut-off date is specified?: 2006
          In their 2021 Forests CDP Kao report a cut off date 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 or the SMallholder Inclusion for better Livelihood & Empowerment program
          " We announced the launch of the SMILE program, which seeks to improve and sustain the productivity of small-scale palm farms and supports acquisition of certification for sustainable palm oil in Indonesia. [///] the collaboration is between downstream producer Kao Corporation (CEO: Michitaka Sawada), mid-stream processor, exporter and trader Apical Group (President: Dato' Yeo How), as well as upstream producer Asian Agri (Managing Director: Kelvin Tio)."
        • Jurisdictional approach focused on sustainable land use
          No
          0/2
        • Risk assessments for forest risk
          Yes
          2/2
          Risk assessments for forest risk
          Yes
          2/2
          For what percentage of material produced or sourced by the company has forest risk been assessed?: 100%

          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 palm oil mill of all supplied palm oil. The available tools do not provide sufficient information for tracing the places of origin. Therefore, Kao has developed internal company methods, to evaluate traceability up to the mills and for both of carrying out a risk-assessment and confirming traceability. The risk assessment method is as follows. (1) Kao obtains supply chain information from refineries (Tier-1) about the name of palm kernel oil mills (Tier-2) and palm oil mills (Tier-3), parent company names, locations (latitude and longitude), etc. and prepares a palm mill list. By contacting Tier-1, Kao confirms the status of NDPE/HCSA/FPIC compliance efforts at Tier-1, its group companies, Tier-2 and Tier-3 in the supply chain. Kao surveys for plantations (Tier-4) by regularly contacting Tier-1 to verify traceability toTier-4. "
        • 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 sourced/used
          Reporting total volume
          3/3
          Report volumes of commodity sourced/used
          Reporting total volume
          3/3
          Reporting non-certified/non-compliant volume: 73%

          Reporting certified/compliant volume: 133,500 tonnes

          What product types/sectors is this in?: product manufacturing for consumer goods and chemical products

          What is the non-DCF commodity volume sourced from known production areas, and proportion of total supply chain volume this represents?: NA

          Total volume: 431,000 tons
          In their 2021 Forest CDP Kao report that their total usage of palm was 431,000 tons. "Procurement of certified palm oil: Ratio of RSPO certified oil to total palm oil: 27%, 133,500 tonnes "
        • Monitor compliance for labour rights and FPIC
          Yes, and publishes evidence of actions taken to implement its commitment on labour rights in the production or primary processing operations that it owns, manages or otherwise controls or its supply chains
          3/5
          Monitor compliance for labour rights and FPIC
          Yes, and publishes evidence of actions taken to implement its commitment on labour rights in the production or primary processing operations that it owns, manages or otherwise controls or its supply chains
          2.5/5
          What steps has the company taken to implement their labour rights commitment?: audits

          What percentage/number of new interests, developments, or expansions has the company used FPIC to secure consent of indigenous peoples/local communities?: NA

          What is the status of those FPIC processes?: NA
          In their Supplier's Assessment Guidelines Kao set out their labour rights commitment and state that they "ensure that these guidelines are understood by all our suppliers and check their compliance through audits and other means"
        • Monitor compliance for zero tolerance approach and customary rights
          No
          0/5
        • Downstream: Reporting suppliers
          Yes, report direct suppliers
          2/4
          Downstream: Reporting suppliers
          Yes, report direct suppliers
          2/4
          Does the company disclose location of suppliers' production areas or primary processing sites?: Yes

          What is the volume of each forest risk commodity that the company sourced in the previous year from each national or subnational location?: NA

          For what percent is no location data disclosed?: NA

          For what percent are boundaries disclosed?: 0%

          For what percent of smallholder suppliers is location disclosed?: 0%

          For what percent of suppliers' production areas are point locations disclosed?: 100% of mills

          From what country(ies) does the company source material?: Indonesia, Malaysia, Thailand

          From what sub-national jurisdiction(s) does the company source material?: https://www.kao.com/content/dam/sites/kao/www-kao-com/global/en/sustainability/pdf/progress-2022-001.pdf

          What type of location data (boundary, point, etc.) is provided for smallholder farms?: NA
          Kao update their palm mill list twice a year. Information is provided on the Palm Oil Mill Parent Company, as well as the Palm Oil Mill's Latitude, Longitude, Country, Province and RSPO certification status
        • Downstream: Monitor compliance in supply chain
          Yes, for its suppliers
          2/4
          Downstream: Monitor compliance in supply chain
          Yes, for its suppliers
          2/4
          For what percentage of suppliers does the company use/rely on external mechanisms to monitor compliance?: NA

          For what percentage of the commodity sourced by the company is deforestation/conversion monitored at the farm level on production units known to be in the company's supply chain?: NA

          For what percent of suppliers does the company directly monitor compliance of production or processing operations?: 100%

          How frequently is compliance assessed?: Annually

          How is compliance monitored?: Internal monitoring and verification systems

          What percentage of the company's supply chain volume does that represent?: 100%
          "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?: Yes

          Does the company work with the non-compliant supplier to develop an implementation plan to remedy associated harms or non-compliance?: Yes

          What criteria does the policy specify for blacklisting or exclusion?: continued non-compliance

          What type of support does the company offer to its suppliers to help them achieve compliance with commitments?: developing time-bound targets and milestones to bring suppliers back into compliance

          Does the company commit to engage with rightsholders, Indigenous peoples and local communities when developing the implementation plan?: No
          "Monitoring and verification approach [...] by contacting Tier-1, Kao confirms the status of NDPE compliance efforts [... Kao uses satellite photographs to check whether their are national parks, protected forests and peatlands within a 50km radius of palm mill location etc [...] in addition, Kao carries out an on-site survey of third party [...] high risk mills [..] response to supplier non-compliance: suspend and engage [...] to address and resolve non-compliance [...] develop time-bound targets and milestones to bring suppliers back into compliance [...] if the non-compliance status continues for a long time, Kao requests the refinery to suspend business with the company concerned". In their 2021 Forest CDP, Kao report report that 100% of their suppliers are compliant with their policy
        • 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

          How many noncompliant producers or suppliers are engaged through improvement plans or other processes, and what percentage of the company's supply chain volume does that represent?: 8 mills
          "Kao carries out an on-site survey of third party [...] high risk mills [...] Kao had conducted on-site surveys of 8 mills"
    • Pulp & Paper
      51/90
      • Commitment Strength
        14/17
        • Commodity-specific deforestation commitment
          7/9.5
          • Commitment details
            Zero-gross deforestation
            4/6
            Commodity-specific deforestation commitment
            Zero-gross deforestation
            4/6
            When was this commitment set?: NA

            What paper/pulp product does their commitment apply to?: Paper products
            "We are also committed to sustainable procurement based on the “High-Risk” Supply Chain Management and Sourcing. We pursue zero deforestation at the source in our procurement of raw materials including palm oil and paper. We support the NDPE* and request that suppliers and supplier group companies comply with it."
          • Commitment applies to all regions, suppliers and operation
            Yes
            2/2
            Commitment applies to all regions, suppliers and operation
            Yes
            2/2
            "We are also committed to sustainable procurement based on the “High-Risk” Supply Chain Management and Sourcing. We pursue zero deforestation at the source in our procurement of raw materials including palm oil and paper. We support the NDPE* and request that suppliers and supplier group companies comply with it."
          • Target date
            2025
            0.8/1
            Target date
            2025
            0.8/1
            What actions or steps are identified for time-bound implementation?: 100% certified
            "We are also committed to sustainable procurement based on the “High-Risk” Supply Chain Management and Sourcing. We pursue zero deforestation at the source in our procurement of raw materials including palm oil and paper. We support the NDPE* and request that suppliers and supplier group companies comply with it." [...] "transition to FSC and other third-party certified products: we aim to procure 100% certified products for the pulp and paper used in Kao products by 2025"
          • Interim target date
            No
            0/0.5
        • Commitment to a traceable supply chain
          8/7.5
          • Commitment details
            Traces to Point of production
            4/4
            Commitment to a traceable supply chain
            Traces to Point of production
            4/4
            When was this commitment set?: NA
            "paper and pulp procurement [...] achieve traceability back to the forest: we maintain 100% traceability back to the forest"
          • Commitment applies to all regions, suppliers and operation
            Yes
            2/2
            Commitment applies to all regions, suppliers and operation
            Yes
            2/2
            "paper and pulp procurement [...] achieve traceability back to the forest: we maintain 100% traceability back to the forest"
          • Target date
            Current/achieved
            1/1
            Target date
            Current/achieved
            1/1
            What actions or steps are identified for time-bound implementation?: 100% traceability back to the forest
            "paper and pulp procurement [...] achieve traceability back to the forest: we maintain 100% traceability back to the forest"
          • Interim target date
            NA (target date current or achieved or 2023)
            0.5/0.5
            Interim target date
            NA (target date current or achieved or 2023)
            0.5/0.5
            What date is given for the interim milestone?: na
            "paper and pulp procurement [...] achieve traceability back to the forest: we maintain 100% traceability back to the forest"
      • Associated Human Rights Abuses
        9/17
        • Labour rights in the supply chain
          Yes
          3/3
          Labour rights in the supply chain
          Yes
          3/3
          Details of commitment: ILO; Discrimination; Forced labour; Child labour; Freedom of association

          How far back in the supply chain does this commitment apply?: Thier direct suppliers
          "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
          0/2
        • Gender equality in the supply chain
          No commitment
          0/2
        • Commitment to remediation
          Yes
          1/1
          Commitment to remediation
          Yes
          0.5/1
          What does the commitment cover?: Social harm; Environmental harm
          In their 2021 Forests CDP (p.33) Kao state that they have company wide "commitment to remediation, restoration and/or compensation of past harms" for forest-related issues
        • Commitment to test Free, Prior and Informed Consent
          Yes, the company commits to test for FPIC prior to acquiring new interests, developments, or expansions
          2/3
          Commitment to test Free, Prior and Informed Consent
          Yes, the company commits to test for FPIC prior to acquiring new interests, developments, or expansions
          2/3
          How far back in the supply chain does this commitment apply?: suppliers
          "Principles for Action [...] guarantee [...] FPIC"
        • Commitment to respect customary rights to land, resources, and territory
          No
          0/3
        • Zero-tolerance approach to violence and threats
          Yes
          3/3
          Zero-tolerance approach to violence and threats
          Yes
          3/3
          "We have a zero-tolerance policy in place for our supply chains regarding violence, criminalization or intimidation of Human Rights Defenders (HRDs). We also take appropriate action against non-compliant suppliers in accordance with our corporate protocols, including the option of terminating business contracts."
      • Implementation and Reporting
        29/56
        • Reporting proportion of compliant volumes
          0/0
        • Reporting is independently verified
          Yes, using a third-party verification scheme or certification scheme
          0/2
          Reporting is independently verified
          Yes, using a third-party verification scheme or certification scheme
          0/2
          "In 2020, the rate of certified products reached 94% FSC: approx 61%, PEFC: approx 33%"
        • Suppliers aligned with deforestation commitments across supply chain
          Yes, required
          3/3
          Suppliers aligned with deforestation commitments across supply chain
          Yes, required
          3/3
          "we support the principles of NDPE and require that all our third-party suppliers and their corporate groups have adopted the NDPE policies"
        • Deforestation cut off date
          Yes, for all sourcing regions/operations
          2/2
          Deforestation cut off date
          Yes, for all sourcing regions/operations
          2/2
          What cut-off date is specified?: 2014
          In their 2021 Forests CDP Kao state that their cut-off date for timber products is 2014. In the CDP 'Timber' specifically covers Paper and Pulp
        • Collaborative actions
          Yes
          2/2
          Collaborative actions
          Yes
          2/2
          What is the nature of that participation?: Attending & contributing to meetings; Providing financial support

          What initiatives does the company participate in?: FSC Forest Week, JBIB
          "Kao sponsored FSC Forest Week 2020 campaign [...] Kao participated in JBIB, an initiative undertaken by Japanese companies highly motivated to act on the conservation of biodiversity [...] promoting activities to reduce deforestation"
        • Jurisdictional approach focused on sustainable land use
          No
          0/2
        • Risk assessments for forest risk
          Yes
          2/2
          Risk assessments for forest risk
          Yes
          2/2
          For what percentage of material produced or sourced by the company has forest risk been assessed?: 100%

          How frequently are assessments conducted?: not specified
          "As part of our risk assessment for the consistent continuation of our business, Kao identifies the places of origin of all supplied pulp and paper. The available tools do not provide sufficient information for tracing the places of origin. Therefore, Kao has developed internal company methods. Kao is using WWF Japan’s Responsible Purchasing Checklist […] based on the evaluation with the checklist, Kao assesses any risks arising from raw materials supplied to Kao […] 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 sourced/used
          Reporting total volume
          3/3
          Report volumes of commodity sourced/used
          Reporting total volume
          3/3
          What product types/sectors is this in?: Pulp, Paper, Packaging

          What is the non-DCF commodity volume sourced from known production areas, and proportion of total supply chain volume this represents?: NA

          Reporting certified/compliant volume: 94%

          Reporting non-certified/non-compliant volume: 6%

          Total volume: 287,000 tonnes
          In their 2021 Forests CDP, Kao report that their total volume of timber products is 287,000 tonnes. "In 2020, the rate of certified products reached 94% FSC: approx 61%, PEFC: approx 33%"
        • Monitor compliance for labour rights and FPIC
          Yes, and publishes evidence of actions taken to implement its commitment on labour rights in the production or primary processing operations that it owns, manages or otherwise controls or its supply chains
          3/5
          Monitor compliance for labour rights and FPIC
          Yes, and publishes evidence of actions taken to implement its commitment on labour rights in the production or primary processing operations that it owns, manages or otherwise controls or its supply chains
          2.5/5
          What is the status of those FPIC processes?: NA

          What steps has the company taken to implement their labour rights commitment?: audits

          What percentage/number of new interests, developments, or expansions has the company used FPIC to secure consent of indigenous peoples/local communities?: NA
          In their Supplier's Assessment Guidelines Kao set out their labour rights commitment and state that they "ensure that these guidelines are understood by all our suppliers and check their compliance through audits and other means"
        • Monitor compliance for zero tolerance approach and customary rights
          No
          0/5
        • Downstream: Reporting suppliers
          No
          0/4
        • Downstream: Monitor compliance in supply chain
          Yes, for its suppliers
          2/4
          Downstream: Monitor compliance in supply chain
          Yes, for its suppliers
          2/4
          What percentage of the company's supply chain volume does that represent?: 100%

          How frequently is compliance assessed?: Annually

          For what percent of suppliers does the company directly monitor compliance of production or processing operations?: 100%

          For what percentage of suppliers does the company use/rely on external mechanisms to monitor compliance?: NA

          How is compliance monitored?: Internal monitoring and verification systems

          For what percentage of the commodity sourced by the company is deforestation/conversion monitored at the farm level on production units known to be in the company's supply chain?: NA
          "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
          What criteria does the policy specify for blacklisting or exclusion?: continued non-compliance

          Does the company work with the non-compliant supplier to develop an implementation plan to remedy associated harms or non-compliance?: Yes

          Does the company engage non-compliant indirect suppliers in order to address and remedy non-compliance?: Yes

          What type of support does the company offer to its suppliers to help them achieve compliance with commitments?: not specified

          Does the company commit to engage with rightsholders, Indigenous peoples and local communities when developing the implementation plan?: No
          "Timber products [...] response to supplier non-compliance: suspend and engage [...] If Kao found that a supplier is non-compliance, Kao will temporarily stop procurement and engages the supplier to comply. If the status of compliance continues for long-term, Kao will also consider changing the supplier"
        • Downstream: Disclosure of non-compliant suppliers
          Yes, engaged; Yes, excluded
          2/2
          Downstream: Disclosure of non-compliant suppliers
          Yes, engaged; Yes, excluded
          2/2
          Does the company have a list of blacklisted or otherwise excluded suppliers or producers?: No

          How many noncompliant producers or suppliers are engaged through improvement plans or other processes, and what percentage of the company's supply chain volume does that represent?: 0
          "in 2020, no suppliers are requested for improvement nor discontinue trading"
    • Soy *
      10/90
      • Commitment Strength
        0/17
        • Commodity-specific deforestation commitment
          0/9.5
          • Commitment details
            No commitment
            0/6
          • Commitment applies to all regions, suppliers and operation
            No
            0/2
          • Target date
            Post 2050 or no target date
            0/1
          • Interim target date
            No
            0/0.5
        • Commitment to a traceable supply chain
          0/7.5
          • Commitment details
            No traceability commitment
            0/4
          • Commitment applies to all regions, suppliers and operation
            No
            0/2
          • Target date
            Post 2050 or no target date
            0/1
          • Interim target date
            No
            0/0.5
      • Associated Human Rights Abuses
        5/17
        • Labour rights in the supply chain
          Yes
          3/3
          Labour rights in the supply chain
          Yes
          3/3
          How far back in the supply chain does this commitment apply?: Their direct suppliers

          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
          0/2
        • Gender equality in the supply chain
          No commitment
          0/2
        • Commitment to remediation
          No
          0/1
        • Commitment to test Free, Prior and Informed Consent
          Yes, the company commits to test for FPIC prior to acquiring new interests, developments, or expansions
          2/3
          Commitment to test Free, Prior and Informed Consent
          Yes, the company commits to test for FPIC prior to acquiring new interests, developments, or expansions
          2/3
          How far back in the supply chain does this commitment apply?: suppliers
          "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 respect customary rights to land, resources, and territory
          No
          0/3
        • Zero-tolerance approach to violence and threats
          No
          0/3
      • Implementation and Reporting
        5/56
        • Reporting is independently verified
          No
          0/2
        • Suppliers aligned with deforestation commitments across supply chain
          No
          0/3
        • Deforestation cut off date
          No
          0/2
        • Collaborative actions
          No
          0/2
        • Jurisdictional approach focused on sustainable land use
          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 sourced/used
          No reporting
          0/3
        • Monitor compliance for labour rights and FPIC
          Yes, and publishes evidence of actions taken to implement its commitment on labour rights in the production or primary processing operations that it owns, manages or otherwise controls or its supply chains
          3/5
          Monitor compliance for labour rights and FPIC
          Yes, and publishes evidence of actions taken to implement its commitment on labour rights in the production or primary processing operations that it owns, manages or otherwise controls or its supply chains
          2.5/5
          What is the status of those FPIC processes?: NA

          What steps has the company taken to implement their labour rights commitment?: Audits

          What percentage/number of new interests, developments, or expansions has the company used FPIC to secure consent of indigenous peoples/local communities?: NA
          In their Supplier's Assessment Guidelines Kao set out their labour rights commitment and state that they "ensure that these guidelines are understood by all our suppliers and check their compliance through audits and other means"
        • Monitor compliance for zero tolerance approach and customary rights
          No
          0/5
        • Downstream: Reporting suppliers
          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
    12/17
    Avg. score
  • Implementation and Reporting
    23/56
    Avg. score
  • Associated Human Rights Abuses
    9/17
    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 
Paper Packaging, Personal Products
Segments
Manufacturer
HQ
HQ 
Japan
Company Type
Company type 
CO
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.