Materiality

List of Materiality

Process

KPI

Materiality (Important Issues)

Environment

Delivering solutions to environmental issues through our business activities

Promoting eco-friendly product planning and technological development
Reducing environmental impact throughout our business activities
Contributing to environmental conservation and preservation

Society

Valuing and nurturing people

Promoting employee health and safety
Developing and cultivating the capacity to offer total solutions related to packaging
Promoting diverse work styles that encourage all employees to thrive

Building and enhancing relations of trust with our business partners and customers

Co-creating brand value with our customers
Maintaining and improving quality through joint efforts with business partners

Contributing to social development and prosperity

Contributing to developing future generations and fostering environmental awareness
Providing solutions to increasingly diverse social issues

Governance

Enhancing management foundations

Securing soundness, transparency, and efficiency in management
Promoting supply chain risk management

List of Materiality issues organized from an ESG point of view

	Major themes	Materiality (Important Issues)	Initiatives
E (Environment)	Delivering solutions to environmental issues through our business activities	Promoting eco-friendly product planning and technological development	Developing, procuring, and supplying eco-friendly raw materials, including forestry-certified and mixed paper Proposing packaging that requires reduced volumes of raw materials Proposing solutions to improve work efficiency through use of our packaging Proposing alternative surface processing technologies to replace plastic laminates Developing alternative paper packaging to replace plastic packaging Developing reusable packaging Developing eco-friendly plastic packaging
		Reducing environmental impact throughout our business activities	Purifying and reusing water used in manufacturing processes Reducing CO₂ emissions (intensity) Transitioning to renewable energy Appropriately managing industrial waste and reducing emissions; promoting recycling
		Contributing to environmental conservation and preservation	Preserving and restoring forest and mountain areas Planting trees with consideration for ecosystems Establishing a new environment fund to support efforts such as the preservation and restoration of coasts and rivers Investing in efforts that contribute to environmental conservation and preservation

	Major themes	Materiality (Important Issues)	Initiatives
S (Society)	Valuing and nurturing people	Promoting employee health and safety	Maintaining and improving the health of employees and their families as set forth in the Health and Productivity Management Declaration Implementing safety measures at manufacturing sites Stockpiling disaster supplies to keep employees safe in the event of natural disasters
		Developing and cultivating the capacity to offer total solutions related to packaging	Using the Packaging Laboratory to foster an organization of specialists who support The Pack as a company offering total solutions related to packaging Developing and utilizing databases on packaging expertise Improving business efficiency and enhancing proposal capabilities through digital transformation (DX) Promoting product development through training sessions in which manufacturing sites participate
		Promoting diverse work styles that encourage all employees to thrive	Developing environments for work styles suited to employee lifestyles Promoting an action plan to empower women in the workplace Designing remuneration schemes to allow employees to work with peace of mind and other systems to secure post-retirement plans Developing teleworking environments and adopting communication tools Developing employee skills and optimizing assignments through job rotations Building a more open human resource evaluation system
	Building and enhancing relations of trust with our business partners and customers	Co-creating brand value with our customers	Identifying and analyzing customer issues and providing solutions Collecting information on packaging in Japan and overseas and communicating market developments and trends Providing multifaceted proposals on distribution and logistics solutions to achieve labor savings, automation, and mechanization Proposing ways to participate in The Pack Forest^® Environment Fund to preserve forests
		Maintaining and improving quality through joint efforts with business partners	Implementing joint development of production technologies and establishing mass production in partnership with production subcontractors Improving quality by enhancing quality control structures Establishing eco-friendly logistics systems
	Contributing to social development and prosperity	Contributing to developing future generations and fostering environmental awareness	Holding visiting classes for elementary school students Participating in educational content (including online) Investing in efforts that contribute to the development of future generations Participating in and supporting activities that lead to increased environmental awareness
	Contributing to social development and prosperity	Providing solutions to increasingly diverse social issues	Achieving labor savings, automation, and reduced CO₂ emissions by promoting a PAS system Developing packaging in a way that helps to address labor shortages Proposing total solutions that combine packaging with packing and logistics equipment Support for activities that create jobs for people with disabilities and activities that assist them in becoming self-sufficient and finding employment Supporting activities of children to support environmental protection

	Major themes	Materiality (Important Issues)	Initiatives	Association with SDGs
G (Governance)	Enhancing management foundations	Securing soundness, transparency, and efficiency in management	Improving corporate governance structures Disclosing information on the status of initiatives related to all principles of the Corporate Governance Code Strengthening management soundness through the C-Line (compliance line as the internal whistleblowing system) Implementing fair and objective decision-making processes for management appointments Improving the quality of disclosure to shareholders and other stakeholders Securing diversity among the Board of Directors
G (Governance)	Enhancing management foundations	Promoting supply chain risk management	Strengthening supply chains that can respond to various procurement, production, and sales risks Enhancing resilience to ensure the appropriate operation of business continuity planning Countering information leaks and system failures associated with cybersecurity risks

Identification process

Step

Organizing study meetings held by the Sustainable Business Team, which is a member of the project team that identifies materiality topics

The project team has at least one individual from each department responsible for topics such as sales, quality control, finance, legal affairs, human resources, general affairs, and business strategy. Multiple study meetings to date have strengthened the understanding of team members regarding terminology and sustainable management at other companies. Study meetings have also been held for executives to promote their understanding and discussion of initiatives to help build a narrative on sustainable management and value creation as well as initiatives related to the Task Force on Climate-related Financial Disclosures (TCFD).

Step

Reviewing the value chain and ascertaining our management capital (strengths)

We examined our value chain in great detail, identifying our unique qualities and points of differentiation from our competitors.
Based on the findings, we identified our management capital: financial capital, manufacturing capital, human capital, intellectual capital, social and relationship capital, and natural capital.

Step

Identifying themes (issues) for maintaining and growing our management capital and defining initiatives for each issue

We studied how to maintain and grow management capital comprising these six types of capital and identified related issues. We also defined initiatives for each issue as it relates to the environment, customers, people and labor, local communities and society, and management.

Step

Deciding on materiality topics based on their importance to stakeholders and to the Company

Step

Submitting the materiality topics through the Sustainability Committee to the Board of Directors for approval

KPI

Major themes	Materiality	KPI	Target fiscal year for achievement	Formulation/revision
Delivering solutions to environmental issues through our business activities	Promoting eco-friendly product planning and technological development	Increasing sales share^*1 for FSC^®-certified products (paper bags, folding paper cartons, and corrugated boxes) to at least 50%	FY2030	September 2023
	Delivering solutions to environmental issues through our business activities	Reducing CO₂emissions (Scopes 1 and 2) by 46% from FY2018	FY2030	September 2023
	Contributing to environmental conservation and preservation	Holding activities for The Pack Forest® Environment Fund 15 times annually, with a total of 500 participants per year	FY2030	September 2023
Valuing and nurturing people	Promoting diverse work styles that encourage all employees to thrive	Increasing the percentage of women to at least 15% for managerial positions (section manager and above)	FY2030	September 2023
Building and enhancing relations of trust with our business partners and customers	Co-creating brand value with our customers	Receiving support from 300 companies^*2 for The Pack Forest® Environment Fund	FY2030	September 2023

^※1Sales share: Nonconsolidated figure for The Pack's Paper Products business as a whole
^※2Counting only companies with sales results
（FSC^® C020517）

Materiality

Materiality (Important Issues)

Environment

Delivering solutions to environmental issues through our business activities

Society

Valuing and nurturing people

Building and enhancing relations of trust with our business partners and customers

Contributing to social development and prosperity

Governance

Enhancing management foundations

List of Materiality issues organized from an ESG point of view

Identification process

Organizing study meetings held by the Sustainable Business Team, which is a member of the project team that identifies materiality topics

Reviewing the value chain and ascertaining our management capital (strengths)

Identifying themes (issues) for maintaining and growing our management capital and defining initiatives for each issue

Deciding on materiality topics based on their importance to stakeholders and to the Company

Submitting the materiality topics through the Sustainability Committee to the Board of Directors for approval

KPI

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