Nippon Paper Industries Co. Ltd.

Overall approach

3/16
- Overarching commitment on deforestation
  
  0/6
- Signatory to an initiative tackling deforestation
  
  1/1
  
  Signatory
  
  Yes
  
  1/1
  
  Company is a signatory to the Consumer Goods Forum; Company is a signatory to the UN Global Compact
  
  Open source document
  Open source document
- Awareness of the value of forests
  
  1/1
  
  Awareness
  
  Yes
  
  1/1
  
  "Conversion to farmland, nontraditional slash-and-burn farming, excessive logging for firewood, excessive commercial logging, forest fires, etc all take their toll on forests. Additionally, GHG emissions from these activities account for over 10% * of global emissions. In order to mitigate climate change, it follows that efforts to prevent the decline and deterioration of forests in developing countries are extremely important."
  
  Open source document
- 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.: reputational
  
  Nippon Paper lists the following as a reputation risk "Reputational Risk - Increasing need for the sustainable procurement of woody biomass fuel [...] • Implementation and audit of supplier surveys • Utilization of forest certifications"
  
  Open source document
- High-level management of deforestion
  
  0/1
- Executive compensation linked to deforestation
- Target to reduce emissions from land-use change
  
  0/3
- Reporting on emissions from land-use change
  
  0/3
- Disclosure of conservation activity
- Disclosure of reforestation activity
Commodity score

23/84
- Pulp & Paper
  
  34/84
  - Commitment Strength
    
    16/28
    - 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
        
        "Environmentally friendly raw materials procurement (1) We procure woodchips, lumber and pulp from forests under sustainable forest management. (2) We use and deal in no illegally logged lumber and we support the eradication of illegal logging [...] All wood-based raw materials have been certified by the PEFC or FSC [...] Key Objective - 100% of wood used as raw material for paper, 100% Completed"
        
        Open source document
      - Commitment applies to all regions, suppliers and operation
        Yes
        
        2/2
        
        Commitment applies to all regions, suppliers and operation
        
        Yes
        
        2/2
        
        "Environmentally friendly raw materials procurement (1) We procure woodchips, lumber and pulp from forests under sustainable forest management. (2) We use and deal in no illegally logged lumber and we support the eradication of illegal logging [...] All wood-based raw materials have been certified by the PEFC or FSC® [...] Key Objective - 100% of wood used as raw material for paper, 100% Completed"
        
        Open source document
      - Target date
        Current/2020/Pre-2020
        
        1.3/1.3
        
        Target date
        
        Current/2020/Pre-2020
        
        1.3/1.3
        
        "Environmentally friendly raw materials procurement (1) We procure woodchips, lumber and pulp from forests under sustainable forest management. (2) We use and deal in no illegally logged lumber and we support the eradication of illegal logging [...] All wood-based raw materials have been certified by the PEFC or FSC® [...] Key Objective - 100% of wood used as raw material for paper, 100% Completed"
        
        Open source document
      - Interim target date
        Yes
        
        0.7/0.7
        
        Interim target date
        
        Yes
        
        0.7/0.7
        
        "Environmentally friendly raw materials procurement (1) We procure woodchips, lumber and pulp from forests under sustainable forest management. (2) We use and deal in no illegally logged lumber and we support the eradication of illegal logging [...] All wood-based raw materials have been certified by the PEFC or FSC® [...] Key Objective - 100% of wood used as raw material for paper, 100% Completed"
        
        Open source document
    - Commitment to reduce use of virgin wood fibre
      
      6/8
      - Commitment details
        Yes
        
        4/4
        
        Commitment to reduce use of virgin wood fibre
        
        Yes
        
        4/4
        
        Type of commitment: Recycled content
        
        "We make active use of recycled materials to help build a recycling-oriented society." "The Nippon Paper Group is engaged primarily in the manufacture of paper products. 52.2 percent of the raw materials are composed of recycled paper and the remaining 47.8% consists of such wood resources as woodchips."
        
        Open source document
      - Commitment applies to all regions, suppliers and operation
        Yes
        
        2/2
        
        Commitment applies to all regions, suppliers and operation
        
        Yes
        
        2/2
        
        "We make active use of recycled materials to help build a recycling-oriented society." "The Nippon Paper Group is engaged primarily in the manufacture of paper products. 52.2 percent of the raw materials are composed of recycled paper and the remaining 47.8% consists of such wood resources as woodchips."
        
        Open source document
      - Target date
        No target date
        
        0/1.3
        
        Target date
        
        No target date
        
        0/1.3
        
        "We make active use of recycled materials to help build a recycling-oriented society." "The Nippon Paper Group is engaged primarily in the manufacture of paper products. 52.2 percent of the raw materials are composed of recycled paper and the remaining 47.8% consists of such wood resources as woodchips."
        
        Open source document
      - Interim target date
        No
        
        0/0.7
        
        Interim target date
        
        No
        
        0/0.7
        
        "We make active use of recycled materials to help build a recycling-oriented society." "The Nippon Paper Group is engaged primarily in the manufacture of paper products. 52.2 percent of the raw materials are composed of recycled paper and the remaining 47.8% consists of such wood resources as woodchips."
        
        Open source document
    - Commitment to a traceable supply chain
      
      0/8
      - Commitment details
        No traceability commitment
        
        0/4
      - Commitment applies to all regions, suppliers and operation
        No
        
        0/2
      - Target date
        No target date
        
        0/1.3
      - Interim target date
        No
        
        0/0.7
  - Social Considerations
    
    0/18
    - Labour rights in the supply chain
      No
      
      0/4
    - 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
      No commitment
      
      0/4
  - Reporting and Implementation
    
    18/38
    - Reporting against commitments
      
      4/6
      - Commitment to protect priority forests
        Yes
        
        2/2
        
        Commitment to protect priority forests
        
        Yes
        
        2/2
        
        "Environmentally friendly raw materials procurement (1) We procure woodchips, lumber and pulp from forests under sustainable forest management. (2) We use and deal in no illegally logged lumber and we support the eradication of illegal logging [...] All wood-based raw materials have been certified by the PEFC or FSC® [...] Key Objective - 100% of wood used as raw material for paper, 100% Completed"
        
        Open source document
      - Commitment to reduce use of virgin wood fibre
        Yes
        
        2/2
        
        Commitment to reduce use of virgin wood fibre
        
        Yes
        
        2/2
        
        "We make active use of recycled materials to help build a recycling-oriented society." "The Nippon Paper Group is engaged primarily in the manufacture of paper products. 52.2 percent of the raw materials are composed of recycled paper and the remaining 47.8% consists of such wood resources as woodchips."
        
        Open source document
      - Commitment to a traceable supply chain
        No
        
        0/2
    - 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, PEFC Certification
        
        Which tools, approaches, third-party verification, including certification, schemes are used?: FSC, PEFC Certification
        
        "Environmentally friendly raw materials procurement (1) We procure woodchips, lumber and pulp from forests under sustainable forest management. (2) We use and deal in no illegally logged lumber and we support the eradication of illegal logging [...] All wood-based raw materials have been certified by the PEFC or FSC® [...] Key Objective - 100% of wood used as raw material for paper, 100% Completed"
        
        Open source document
      - 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
      No
      
      0/2
    - Risk assessments for forest risk
      Yes
      
      2/2
      
      Risk assessments for forest risk
      
      Yes
      
      2/2
      
      How frequently are assessments conducted?: Annual
      
      "The following have been implemented for all procured wood resources. ● Annual audits by the Japan Paper Associationʼs illegal logging monitoring project. ● Annual risk assessments based on the due diligence system of the Programme for the Endorsement of Forest Certification (PEFC), a Forest certification organization"
      
      Open source document
    - Operations assessed to comply with law
      Yes
      
      2/2
      
      Operations assessed to comply with law
      
      Yes
      
      2/2
      
      For overseas timber procurement "Document verifications are performed on a vesselby-vessel basis to ensure that the area where the wood was harvested and the supplier of the wood are in compliance with relevant laws, and that no illegally harvested wood is included. • On-site checks by employees assigned to local offices • Questionnaires and local interviews (Every effort is made to enhance traceability by confirming compliance with statutory requirements regarding forest management, tree species, and the acquisition of forest certifications."
      
      Open source document
    - Accessible grievance mechanism
      Yes
      
      4/4
      
      Accessible grievance mechanism
      
      Yes
      
      4/4
      
      Does the company publish grievances that have been made against it, as well as responses and resolutions including status and timeframes: No
      
      What is the nature of the grievance mechanism used by the company (own mechanism, that of external company, internationally recognised mechanism, focused on social issues, focused on environmental issues, etc.)?: External
      
      Details of the mechanism: Social; Environmental
      
      Nippon Paper Group have an online form which can be completed by any, with specific categories such as [translation] "inquiries about forest resources and tree planting activities" and "CSR/social contribution activities", and "agribusiness".
      
      Open source document
    - 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
      
      Which certification schemes are used?: FSC
      
      What is the non-certified/non-compliant volume?: 0 Kt
      
      What is the certified volume?: 4,160 Kt
      
      Nippon paper reports the following totals, with 100% being certified - "Geographic Breakdown of Wood Raw Materials (chips) Procured by Nippon Paper Industries Co.,Ltd (FY2019) - Overseas 64%（2,651kt); Japan 35% (1,509kt)"
      
      Open source document
    - Upstream: Impact assessments for land development/acquisition
      No
      
      0/4
    - Upstream: Reporting production/processing locations
      No disclosure
      
      0/4
    - Downstream: Publishing supplier lists
      No disclosure
      
      0/4
    - Upstream: Monitor compliance of production/processing
      Yes using an internal monitoring system
      
      4/4
      
      Upstream: Monitor compliance of production/processing
      
      Yes using an internal monitoring system
      
      4/4
      
      Does the company use a jurisdictional monitoring mechanism?: No
      
      Does the company use a certification system?: Yes
      
      How frequently is compliance assessed?: not specified
      
      "Nippon Paper Industries Nippon Paper Papylia and Nippon Paper Crecia have established a Legality Certification Due Diligence System Manual for the purpose of verifying the legality of the wood raw materials that they procure. The companies carry out due diligence and verify that all of wood raw materials procured both in Japan and overseas are sourced from legally felled trees. These checks are carried out at when commencing a new transaction to procure wood resources, and on a regular annual basis for existing sources. ● Confirmation of basic information relating to forest operations. Information examples include compliance with laws and regulations, tree species, and whether forest certifications have been obtained."
      
      Open source document
    - 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 third party verification
      
      "Nippon Paper Industries, in connection with annual forest certification audits and audits performed by the Japan Paper Association’s illegal logging monitoring project, has third parties perform objective assessments to determine whether it is conducting wood resource procurement in accordance with its basic policies. Suggestions from these assessments are then used to make improvements." "The following have been implemented for all procured wood resources. ● Annual audits by the Japan Paper Associationʼs illegal logging monitoring project. ● Annual risk assessments based on the due diligence system of the Programme for the Endorsement of Forest Certification (PEFC), a Forest certification organization"
      
      Open source document
    - 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
      
      "Nippon Paper Industries Co., Ltd. holds CSR seminars for suppliers and other stakeholders"
      
      Open source document
    - Downstream: Disclosure of non-compliant suppliers
      No disclosure
      
      0/2
- Timber *
  
  0/84
  - Commitment Strength
    
    14/28
    - Commitment to protect priority forests
      
      14/17
      - Commitment details
        Zero-gross deforestation
        
        8/10.7
        
        Commitment to protect priority forests
        
        Zero-gross deforestation
        
        8/10.7
        
        Which certification schemes are used?: FSC
        
        "Environmentally friendly raw materials procurement (1) We procure woodchips, lumber and pulp from forests under sustainable forest management. (2) We use and deal in no illegally logged lumber and we support the eradication of illegal logging [...] All wood-based raw materials have been certified by the PEFC or FSC® (All procured chips have been produced with wood from forests with an FM certification or have undergone a risk assessment for the CoC certification)"
        
        Open source document
      - Commitment applies to all regions, suppliers and operation
        Yes
        
        3/3
        
        Commitment applies to all regions, suppliers and operation
        
        Yes
        
        3/3
        
        "Environmentally friendly raw materials procurement (1) We procure woodchips, lumber and pulp from forests under sustainable forest management. (2) We use and deal in no illegally logged lumber and we support the eradication of illegal logging [...] All wood-based raw materials have been certified by the PEFC or FSC® (All procured chips have been produced with wood from forests with an FM certification or have undergone a risk assessment for the CoC certification)"
        
        Open source document
      - Target date
        Current/2020/Pre-2020
        
        2/2
        
        Target date
        
        Current/2020/Pre-2020
        
        2/2
        
        "Environmentally friendly raw materials procurement (1) We procure woodchips, lumber and pulp from forests under sustainable forest management. (2) We use and deal in no illegally logged lumber and we support the eradication of illegal logging [...] All wood-based raw materials have been certified by the PEFC or FSC® (All procured chips have been produced with wood from forests with an FM certification or have undergone a risk assessment for the CoC certification)"
        
        Open source document
      - Interim target date
        Yes
        
        1/1
        
        Interim target date
        
        Yes
        
        1/1
        
        "Environmentally friendly raw materials procurement (1) We procure woodchips, lumber and pulp from forests under sustainable forest management. (2) We use and deal in no illegally logged lumber and we support the eradication of illegal logging [...] All wood-based raw materials have been certified by the PEFC or FSC® (All procured chips have been produced with wood from forests with an FM certification or have undergone a risk assessment for the CoC certification)"
        
        Open source document
    - 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
    
    0/18
    - Labour rights in the supply chain
      No
      
      0/4
    - 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
      No commitment
      
      0/4
  - Reporting and Implementation
    
    18/38
    - Reporting against commitments
      
      3/6
      - Commitment to protect priority forests
        Yes
        
        3/3
        
        Commitment to protect priority forests
        
        Yes
        
        3/3
        
        Does the company report on the degree of compliance/progress with commitments, disaggregated by relevant factors such as origin or supply chain stage?: No
        
        "Environmentally friendly raw materials procurement (1) We procure woodchips, lumber and pulp from forests under sustainable forest management. (2) We use and deal in no illegally logged lumber and we support the eradication of illegal logging [...] All wood-based raw materials have been certified by the PEFC or FSC® (All procured chips have been produced with wood from forests with an FM certification or have undergone a risk assessment for the CoC certification)"
        
        Open source document
      - Commitment to a traceable supply chain
        No
        
        0/3
    - Reporting is independently verified
      
      2/4
      - Commitment to protect priority forests
        Yes: third-party
        
        2/2
        
        Commitment to protect priority forests
        
        Yes: third-party
        
        2/2
        
        Which processes or groups does the company use for third party verification?: FSC, PEFC Certification
        
        Which tools, approaches, third-party verification, including certification, schemes are used?: FSC, PEFC Certification
        
        "Environmentally friendly raw materials procurement (1) We procure woodchips, lumber and pulp from forests under sustainable forest management. (2) We use and deal in no illegally logged lumber and we support the eradication of illegal logging [...] All wood-based raw materials have been certified by the PEFC or FSC® (All procured chips have been produced with wood from forests with an FM certification or have undergone a risk assessment for the CoC certification)"
        
        Open source document
      - 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
      Yes
      
      2/2
      
      Risk assessments for forest risk
      
      Yes
      
      2/2
      
      How frequently are assessments conducted?: Annual
      
      "The following have been implemented for all procured wood resources. ● Annual audits by the Japan Paper Associationʼs illegal logging monitoring project. ● Annual risk assessments based on the due diligence system of the Programme for the Endorsement of Forest Certification (PEFC), a Forest certification organization"
      
      Open source document
    - Operations assessed to comply with law
      Yes
      
      2/2
      
      Operations assessed to comply with law
      
      Yes
      
      2/2
      
      For overseas timber procurement "Document verifications are performed on a vesselby-vessel basis to ensure that the area where the wood was harvested and the supplier of the wood are in compliance with relevant laws, and that no illegally harvested wood is included. • On-site checks by employees assigned to local offices • Questionnaires and local interviews (Every effort is made to enhance traceability by confirming compliance with statutory requirements regarding forest management, tree species, and the acquisition of forest certifications."
      
      Open source document
    - Accessible grievance mechanism
      Yes
      
      4/4
      
      Accessible grievance mechanism
      
      Yes
      
      4/4
      
      Details of the mechanism: Social; Environmental
      
      What is the nature of the grievance mechanism used by the company (own mechanism, that of external company, internationally recognised mechanism, focused on social issues, focused on environmental issues, etc.)?: External
      
      Does the company publish grievances that have been made against it, as well as responses and resolutions including status and timeframes: No
      
      Nippon Paper Group have an online form which can be completed by any, with specific categories such as [translation] "inquiries about forest resources and tree planting activities" and "CSR/social contribution activities", and "agribusiness".
      
      Open source document
    - 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
      
      Which certification schemes are used?: FSC
      
      What is the certified volume?: 4,160 Kt
      
      What is the non-certified/non-compliant volume?: 0 Kt
      
      Nippon paper reports the following totals, with 100% being certified - "Geographic Breakdown of Wood Raw Materials (chips) Procured by Nippon Paper Industries Co.,Ltd (FY2019) - Overseas 64%（2,651kt); Japan 35% (1,509kt)"
      
      Open source document
    - Upstream: Impact assessments for land development/acquisition
      No
      
      0/4
    - Upstream: Reporting production/processing locations
      No disclosure
      
      0/4
    - Downstream: Publishing supplier lists
      No disclosure
      
      0/4
    - Upstream: Monitor compliance of production/processing
      Yes using an internal monitoring system
      
      4/4
      
      Upstream: Monitor compliance of production/processing
      
      Yes using an internal monitoring system
      
      4/4
      
      Does the company use a jurisdictional monitoring mechanism?: No
      
      Does the company use a certification system?: Yes
      
      How frequently is compliance assessed?: not specified
      
      "Nippon Paper Industries Nippon Paper Papylia and Nippon Paper Crecia have established a Legality Certification Due Diligence System Manual for the purpose of verifying the legality of the wood raw materials that they procure. The companies carry out due diligence and verify that all of wood raw materials procured both in Japan and overseas are sourced from legally felled trees. These checks are carried out at when commencing a new transaction to procure wood resources, and on a regular annual basis for existing sources. ● Confirmation of basic information relating to forest operations. Information examples include compliance with laws and regulations, tree species, and whether forest certifications have been obtained."
      
      Open source document
    - 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 third party verification
      
      "Nippon Paper Industries, in connection with annual forest certification audits and audits performed by the Japan Paper Association’s illegal logging monitoring project, has third parties perform objective assessments to determine whether it is conducting wood resource procurement in accordance with its basic policies. Suggestions from these assessments are then used to make improvements." "The following have been implemented for all procured wood resources. ● Annual audits by the Japan Paper Associationʼs illegal logging monitoring project. ● Annual risk assessments based on the due diligence system of the Programme for the Endorsement of Forest Certification (PEFC), a Forest certification organization"
      
      Open source document
    - 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
      
      "Nippon Paper Industries Co., Ltd. holds CSR seminars for suppliers and other stakeholders"
      
      Open source document
    - 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

15/28

Avg. score
Reporting and Implementation

18/38

Avg. score
Social considerations

0/18

Avg. score

Profile

Nippon Paper Industries is a Japanese paper manufacturing company. The company produces newsprint, printing paper, paperboard, wrapping paper, and building materials among other products. Nippon Paper Industries Co. Ltd. is selected as a powerbroker for pulp & paper and is also assessed for its exposure to timber.

Sector

Industry sector

Construction, Paper & packaging

Segments

Producer, Trader, Processor, Manufacturer

Japan

Company Type

Company type

Public listed

Collective Commitments

Consumer Goods Forum member

New York Declaration on Forests signatory

Top Brands

Nippon Paper

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.

Full corporate sector performance data Forest 500 assessment methodology

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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.