The Oji Group Integrated Report 2020 Integrated Report 2020 The Oji Group The Oji Group Integrated Report 2020 Fiscal year ended March 2020 Oji Holdings Corporation 7-5, Ginza 4-chome, Chuo-ku, Tokyo 104-0061 Japan Public Relations and Investor Relations Dept., Corporate Governance Div. https://www.ojiholdings.co.jp/english/ Issued in December 2020 005_0084087912012.indd 4,1 2020/12/02 10:55:39 Management Philosophy & Corporate Slogan Management Philosophy Contribution to Harmony with Creation of the Future and Nature and Innovative Value the World Society Untiring self-transformation, challenging manufacturing, strategic business model creation, and innovation. In a world that is constantly changing, the Oji Group aims to create innovative value in the global arena. Slogan “Beyond the Boundaries” This slogan expresses the Oji Group’s commitment to actively go beyond the “bound- aries” of business domains, countries, and the respective capabilities of individual employees with the aim of contributing to the future, society, and the world as well as the determination of all Group members to maximize corporate value as a truly global company. 090_0084087912012.indd 1 2020/11/18 5:22:03 Management Philosophy & Corporate Slogan Management Philosophy Contribution to Harmony with Creation of the Future and Nature and Innovative Value the World Society Untiring self-transformation, challenging manufacturing, Creation of strategic business model creation, and innovation. In a world that is constantly changing, the Oji Group aims Innovative Value to create innovative value in the global arena. Innovation is essential for the Oji Group to make a big leap forward. Changes must take place in the research and technological development leading up to revolutionary new products. At the same time, our organizational systems and the behaviors of each and every employee need to be trans- formed. We will promote “challenging manufactur- ing” based on novel ideas and fulfill society’s latent needs. Slogan “Beyond the Boundaries” This slogan expresses the Oji Group’s commitment to actively go beyond the “bound- aries” of business domains, countries, and the respective capabilities of individual employees with the aim of contributing to the future, society, and the world as well as the determination of all Group members to maximize corporate value as a truly global company. Oji Group Integrated Report 2020 01 090_0084087912012.indd 1 2020/11/18 5:22:03 Contribution to the Future and the World The Oji Group comprises a diverse range of businesses. We have grown into a global corporate group, with an overseas sales ratio of around 30%. The Group will continue to provide innovative value to all countries, regions and societies and create a new future through proactive global expansion in Asian and other countries. 02 Oji Group Integrated Report 2020 Harmony with Nature and Society Sustainable resource circulation based on forest resources is the foundation of the Oji Group. We will advance our initiatives such that the business activities themselves contribute to a sustainable society. The initiatives include using vast areas of company-owned forest in and outside Japan for multiple purposes, and seeking measures to re- duce the environmental burden at manufacturing sites. Oji Group Integrated Report 2020 03 Photo by João Rabelo From the Publisher of this Integrated Report We publish the Oji Group Integrated Report. This report pres- circumstances, Oji Holdings, operating a sustainable paper ents both financial and non-financial information in an manufacturing business since our foundation, with forest re- easy-to-understand manner so as to deepen investors’ and sources as the core of our business, has held numerous dis- other stakeholders’ understanding of the Group. This fiscal cussions by obtaining internal and external cooperation to year’s report was compiled in such a way that provides narra- sincerely and carefully communicate what new values can be tives and makes it easier to understand. We have also estab- created, and how we can contribute to social safety and secu- lished a “Sustainability Report (online)” section on our website. rity and the global environment. The web page and the Integrated Report complement each We hope that the Oji Group Integrated Report will help you other. understand more about the Oji Group and our initiative to fulfill The society and the global environment surrounding us now our mission to continue innovating to implement our business stand at a crossroads due to a combination of existing issues, activities that contribute to advancing our society, with a view such as climate change and marine plastic litter, and the im- toward the future, through deeper communication with stake- pact of COVID-19 that emerged this fiscal year. Under these holders. Editorial Policies Scope of Coverage of this Report In general, this report covers Oji Holdings, 189 consolidated sub- When preparing this Report, and reference was made to the sidiaries, and 24 equity-method affiliates (as of March 31, 2020). In following. Additionally, the report is structured in relation to cases where coverage differs, this is indicated. the 10 principles in four areas found in the United Nations Reporting Period Global Compact. The reporting period is from April 1, 2019 to March 31, 2020. With ● International Integrated Reporting Framework the exception of numerical data, however, activities carried out (International Integrated Reporting Council) from and after April 2020 are also referenced. ● GRI Standard (Global Reporting Initiative) Disclaimer Regarding Forecasts and Other ● Guidance for Collaborative Value Creation Forward-looking Statements (Ministry of Economy, Trade and Industry) Forecasts and other forward-looking statements in this report rep- resent projections by Oji Holdings based on information available Ensuring Reliability at the time of publication and reasonable judgments and therefore contain uncertainties. Actual results may differ substantially due to To ensure the reliability of this report, FY2019 figures marked various factors. with a star (★) have been assured in accordance with the International Standard for Assurance Engagements (ISAE) This Report is Printed on Forest Certified Paper 3000 and ISAE 3410 by KPMG AZSA Sustainability Co., Ltd. This report uses OK Top Kote Matt N EF paper (cover: 157.0 g/m2; text: 104.7g/m2) manufactured by Oji Paper, an Oji Group compa- ny. The report is printed on FSC™ forest certified paper made from resources harvested from responsibly-managed forests (FSC™ C014119). Communication Map Integration with Strategy (Narrative) Integrated Report https://www.ojiholdings.co.jp/english/ir/information/group_report.html Non- Financial financial Sustainability Report (online) Investor Relations https://ojiholdings.disclosure.site/en https://www.ojiholdings.co.jp/english/ir/ • Corporate governance • Respect for Human • Presentation material • Materials on the Ordinary • Risk management Rights • Summary of General Meeting of • Compliance • Promotion of Human Consolidated Financial Shareholders • Mitigation and Adaptation Resources and Business Results • Corporate Governance to climate changes • Occupational safety • Securities Reports (in Report • Reduction of and health Japanese) • Stock information environmental burden • Biodiversity Conser- • Effective resource vation utilization • Contribution to local • Responsible raw materials communities and procurement society Details (Comprehensive) 04 Oji Group Integrated Report 2020 CONTENTS About the Oji Group Sustainability Strategy 06 History of the Oji Group’s Value Creation 72 Material Issues (ESG) and KPI 08 Business Overview 74 Fundamental Stance and Policy 10 Major Affiliated Companies Distribution Map 76 Effective Resource Utilization—Forest Recycling 12 Financial and Non-financial Highlights 78 Conservation of Biodiversity 79 Mitigation of and Adaptation to Climate Change What the Oji Group Aims For 82 Reduction of Environmental Burden and Effective 14 Message from the President Resource Utilization—Water Resources 22 Value Creation Process 83 Effective Resource Utilization—Water Recycling 24 Sustainable Business Model and Core and Waste Competencies 84 Effective Resource Utilization—Paper Recycling 26 Sustainable Forest Resources 86 Responsible Raw Materials Procurement 28 Material issues, Risks, and Opportunities 87 Stable Supply of Safe and Secure Products 30 FY2019-2021 Medium-term Management Plan 88 Respect for Human Rights 32 Promotion of Innovation 89 Ensuring Worksite Safety and Health 92 Human Resource Measures 95 Contribution to Local Communities and Society Business Strategy 38 Household and Industrial Materials Businesses 44 Functional Materials Business Financial Data & Corporate Data 48 Forest Resources and Environment Marketing 96 Business Performance and a Message from the Business Director in Charge of Finance 52 Printing and Communications Media Business 98 Financial Data Highlights 54 Corporate Management Group and Shared 100 Consolidated Financial Statements Service Companies 103 Third-Party Independent Assurance Report 104 List of Affiliated Companies 106 Corporate Data / Stock Information Management Strategy 107 A Year at the Oji Group 56 Corporate Officers 58 Message from the Chairman 60 Corporate Governance The Oji Group Integrated Report 2020 ❶ ❷ Photos on the Cover 64 Risk Management ❸ ❹ 66 BCP and Measures against COVID-19 ① Yubari mountain forest (Hokkaido) The Oji Group Integrated Report 2020 68 Compliance Fiscal