Nippon Paper Industries : Combined ESG Databook

Contents

| Management Responsibility

Sustainability Management… …………………………… 02

Enhancement of Corporate Governance… …………… 03

Risk Management… ……………………………………… 08

Compliance… ………………………………………………… 10

Communication with Stakeholders………………… 12

| Responsibility for the Sustainable Use of Forest Resources

Sustainable Procurement of Raw Materials… ……… 13

Sustainable Forest Management… …………………… 1 7

| Environmental Responsibility

Environmental Management… ………………………… 2 1

Response to Climate Change… ………………………… 26

Promotion of Resource Circulation…………………… 39

Reduction of Environmental Burden… ……………… 40

Preservation of Biodiversity… ………………………… 44

Other Environment-related Data……………………… 46

| Responsibility to Customers

Stable Supply of Products, Enhanced Safety… ………… 49

Responses to Changes in the Social Environment……… 52

| Human Rights, Employment and Labor Responsibility

Respect for Human Rights……………………………… 53

Realization of Diverse Work Styles… …………………… 56

Active Participation of Diverse Human Resources… …… 58

Promotion of Occupational Safety and Health… …… 64

| Responsibility to Communities

Coexistence with Local Communities and Society… …… 67

| ESG Data Section… …………………………………………… 69

| Basic Policy, etc.… …………………………………………… 72

Nippon Paper Group publishes this ESG Databook every year to report to a wide range of stakeholders on its ESG (Environment, Society, Governance) initiatives. The Group also publishes an integrated report to communicate its long-term value creation.

The ESG Databook sets out initiatives related to the seven core subjects of ISO26000 as responsibilities related to management, the sustainable consumption of forest resources, the environment, customers, human rights and employment and labor, and communities and society, organizing each item according to the Group's important issues (materiality).

Important issues (materiality) to realize the Group mission and key performance indicators (KPI) to achieve by FY2030 (NIPPON PAPER GROUP Integrated Report 2023 P.22-25) https://www.nipponpapergroup.com/english/csr/npg_ir_e_materiality.pdf

Period Covered

Fiscal 2022: April 1, 2022-March 31, 2023

Includes information from before April 1, 2022 and after March 31, 2023. Dates are indicated in such cases.

Scope of Organizations Covered

The reporting entity is Nippon Paper Industries Co., Ltd. Data, however, were compiled as of March 31, 2023 for Nippon Paper Industries Co., Ltd. and all 55 of its consolidated subsidiaries.

Scope of Environmental Coverage

Regarding environment-related policies, systems, and environmental performance data, the following 35 companies are covered in the report, including non-consolidated subsidiaries (12 companies) and affiliates (1 company) with production sites, and all major production sites are included.

Consolidated: Nippon Paper Industries; Nippon Paper Crecia; Crecia Kasuga; Nippon Paper Papylia; Kokuei Paper; GAC; Nippon Seitai; Kyouei Seitai; Nippon Paper Ishinomaki Energy Center; Yufutsu Energy Center; Nippon Paper Lumber; Nanei; Nichimoku Fancy Materials; N&E; Daishowa Uniboard; Nippon Paper Development; Flowric; Nippon Dynawave Packaging; Opal; Jujo Thermal; Siam Nippon Industrial Paper; Amapá Florestal e Celulose*

* In some cases referred to as AMCEL in this report.

(The contribution to total consolidated sales of the companies listed here was 97%.)

(Sales data includes trading companies that are members of the Nippon Paper Group and sell Group-made products to outside buyers.)

Non-consolidated: Mishimakako; Osakakako; Kochikako; Nippon Paper Liquid Package Product; Sakata Chip Kogyo; Iwaki Lumber Industry; Nichimoku Pallet; Nichimoku Rinsan Hokkaido; MANTSUNE PACKAGE; Seikosha Printing; Nippon Paper Nakoso Clean Center; Akita Jujo Chemicals

Affiliated company: Fukuda Paper MFG

Referenced Guidelines

Environmental Reporting Guidelines (2018) of the Ministry of

the Environment

Global Reporting Initiative(GRI) Standards

United Nations Global Compact

Guideline comparison table https://www.nipponpapergroup.com/english/csr/gri/

Links in this Report

P00 ...Click to go to the related page of this Report.

WEB ...Click to go to the related website.

Disclaimer

This report includes not only statements of fact and historical data but also plans, forecasts, and estimates (forward-looking statements) based on the business plans and policies of the Nippon Paper Group. These forward-looking statements are the result of assumptions or judgments based on currently available information as this report was prepared. It should be noted that these statements may differ significantly from actual results due to the impacts of a number of important factors.

Contact for Publication and Inquiries

Nippon Paper Industries Co., Ltd.

Head Office:

4-6 Kanda Surugadai, Chiyoda-ku, Tokyo 101-0062 (Ochanomizu

Sola City), Japan

Contact Information: Sustainability Management Department

TEL: 03-6665-1015

Publication date: September 2023

Previous issue: September 2022

Next issue scheduled: September 2024

Sustainability Website https://www.nipponpapergroup.com/english/csr/ NIPPON PAPER GROUP Integrated Report 2023 https://www.nipponpapergroup.com/english/ir/library/2023/

Sustainability Management

1 Basic Policy

2 Promotion Structure

3 Training and Development for Employees, etc.

Nippon Paper Industries signed and joined the UN Global Compact in 2004. The Company promotes sustainability management that pursues both social and environmental sustainability and the future growth of the Company by realizing the Group Mission based on the Ten Principles of the UN Global Compact in four areas (human rights, labor, environment, and anti-corruption).

The Board of Directors of Nippon Paper Industries

President of

Nippon Paper Industries

General Manager of CSR Division of

Nippon Paper Industries

CSR Division

Sustainability

Management Department

Achievements in Sustainability-related Training and Development (FY2022)

In 2023, the Japan Paper Association, of which the Company is a member, established the "Basic Principles of Sustainability of the Japan Paper Association" based on discussions among member companies. The Company will adhere to these principles and fulfill our social responsibility through business activities.

WEB Basic Principles of Sustainability of the Japan Paper Association (Japanese only)

https://www.jpa.gr.jp/about/sustainability/principle/

Public Relations Oice

The Company has set up the CSR Division as an organization directly under the president's control, and the Sustainability Management Department, Risk Management Department, Compliance Office, and Public Relations Office have established systems to deal with ESG issues, promote risk management, and appropriately disclose information.

The CSR Division reports to the Board of Directors on sustainability-related activities, and in FY2022, it reported to the Board of Directors four times on activities related to respect for human rights and other matters.

Since 2011, the Company has been conducting CSR surveys once a year at Group companies in Japan and overseas in order to confirm the status of each company's response to issues such as the environment, human rights, and regulatory compliance.

*1 Target of aggregation: Nippon Paper Industries *2 Number of elementary school students

CASE STUDY

e-Learning (Nippon Paper Industries)

The Company regularly holds sustainability training for Group employees. In FY2022, with the title of "Basic knowledge of sustainability," the training explained the current state of social challenges and what is expected of companies. Post-training questionnaires were used to check the levels of understanding, awareness, and opinions, and the results were used in the next year's training.

Sustainability Lectures (Nippon Paper Industries)

The Company selects topics from the sustainability perspective and regularly holds lectures from external experts for business partners and Group employees. In FY2022, the Company invited the Wild Bird Society of Japan, which is engaged in activities to protect Blakiston's fish owls in company-owned forests, to lecture on the theme of "Biodiversity Conservation and Corporate Activities."

Dissemination of sustainability information through in-housenewsletters (Nippon Paper Industries)

In the in-house newsletter published four times a year for Group employees, the Company provides information on sustainability. In F Y2022, the Company posted information on the Group's sustainability initiatives.

Enhancement of Corporate Governance

1 Basic Policy

P72 Corporate Governance Policy

WEB Corporate Governance Report

https://www.nipponpapergroup.com/english/ir/governance/

P76 Basic Policy for Establishing the Internal Control System

2 Corporate Governance Structure

Corporate Governance Structure (As of July 1, 2023)

Departments in Charge of Business Execution, Group Companies

Nippon Paper Industries is a company with an Audit & Supervisory Board.

The Company's accounting auditor is Ernst & Young ShinNihon LLC.

1. Board of Directors

The Chairman of the Board of Directors is Fumio Manoshiro,

who is a director without the right to represent the Company.

The Board of Directors has a supervisory function for the overall management, ensures the fairness and transparency of management, and also makes the most appropriate decisions for the Company in the form of decisions on the execution of important operations, which are legally required to be made by the Board of Directors. The Board also supervises the execution of duties by the president, representative director, and other executive officers.

In view of the importance of environmental and social challenges related to sustainability, the Board of Directors shall raise awareness among corporate officers and employees, strive to facilitate the sustainable development of society, and enhance the corporate value of the Nippon Paper Group by promoting active efforts to resolve challenges while giving consideration to stakeholders.

Meetings of the Board of Directors (FY2022)

Number of Board of Directors meetings: 13

Average rate of attendance by directors: 100% (outside directors: 100%) Average rate of attendance by Audit & Supervisory Board Members: 100% (outside Audit & Supervisory Board Members: 100%)

2. Management Executive Committee

Usually, the Management Executive Committee meets once a week to deliberate on important business issues under the authority of the president to assist in the execution of the president's duties.

The Committee membership is basically composed of the president, vice presidents, and general managers.

Meetings of the Management Executive Committee, held once a month, are attended by outside directors and general managers of the Company's mills in order to share information on monthly financial results among management.

3. Group Management Strategy Committee

The Company's Group Management Strategy Committee meets as necessary and deliberates on management strategies by business segment and other important matters related to the Group.

The Committee membership is composed of the Company's management, including outside directors, and presidents of major companies of the Group.

4. Audit & Supervisory Board Members and Audit & Supervisory Board

In addition to meetings of the Board of Directors, Audit & Supervisory Board Members attend other important meetings, such as the Management Execution Committee and the Group Management Strategy Committee, and strictly monitor the execution of duties by directors. They also conduct on-site inspections of the Company's departments, offices and Group companies, and also strictly audit whether company operations are being carried out legally and appropriately.

The Audit & Supervisory Board periodically holds regular meetings with the representative director, working to deepen mutual understanding.

The Audit & Supervisory Board also strives to enhance group audits by strengthening cooperation with Audit & Supervisory Board Members of each Group company.

Status of Meetings of the Audit & Supervisory Board (FY2022) Number of Audit & Supervisory Board meetings: 14 Average rate of attendance by Audit & Supervisory Board Members: 100% (outside Audit & Supervisory Board Members: 100%)

5. Management Audit Office

The Management Audit Office is directly under the President's control. It conducts an internal audit of the Company and each Group company. It also conducts a comprehensive evaluation of the maintenance and operation of the internal control system as it relates to financial reporting.

The Management Audit Office also holds monthly information exchange meetings with the Audit & Supervisory Board Members to ensure cooperation between Audit & Supervisory Board Members and internal audits.

6. Personnel & Remuneration Advisory Committee

To further enhance corporate governance, the Company has established the Personnel and Remuneration Advisory Committee as an advisory body to the Board of Directors, which consists of three outside directors who are independent officers, the President and Representative Director of the Company, and the General Manager of the General Affairs and Human Resources Division.

The Committee is chaired by the president and representative director of the Company. It conducts deliberations with the appropriate involvement and advice of independent outside directors who are members of the Committee. In principle, the chairperson chairs the Committee, but discussions of matters for which independence and objectivity are particularly required are chaired by independent outside directors.

The Committee receives questions from the Board of Directors regarding the selection processes, qualifications, and reasons for nomination of candidates for Directors and Audit & Supervisory Board Members, the criteria for judging the independence of independent outside officers, and the remuneration system for corporate officers of the Company, and considers the appropriateness of these matters, with appropriate involvement and advice from independent outside directors, and reports back based on an assessment of the Company's business performance and other factors.

The Board of Directors shall make decisions regarding nomination of directors and Audit & Supervisory Board Members, and compensation for directors etc., after receiving reports from the Personnel & Remuneration Advisory Committee.

Meetings of the Personnel & Remuneration Advisory Committee (FY2022)

Changed the number of regular meetings from 2 to 4 per year

Average rate of attendance by Committee members: 100%