At the Daio Group, we perform procurement activities based on the Daio Group Sustainable Procurement Guidelines Based on the SDGs in line with the stance described on the right.
1．We comply with laws and regulations, social norms and internal rules, respect the cultures and customs of the countries where our suppliers are located, and fulfill our corporate social responsibility by giving due consideration to human rights, environmental conservation, safety and health, and contributions to local communities in our supply chain in order to realize a sustainable society.
2．We build good partnerships with our suppliers, conduct fair and equitable transactions, and work to mutually improve and develop quality and technical capabilities.
3．We cooperate with our suppliers to formulate a business continuity plan (BCP) and monitor and promote its implementation, aiming to secure a stable supply system.

Daio Group SDGs Procurement Guidelines

Daio Group Basic Procurement Policy

The procurement activities of the Daio Group are based on the following guidelines.We would like to ask our suppliers to understand the basic policy of the Group.

Results of questionnaire based on guidelines

The Daio Group fulfills our corporate social responsibilities (CSR) as expected by the international community, and we aim to contribute to that community as well as enhance our corporate value by actively tackling the SDGs. While operating in accordance with social norms and company rules, we have also established the Daio Group SDGs Procurement Guidelines to actively promote initiatives focused on achieving a sustainable society while respecting our business partners’ cultures and practices. The FY2024 SDGs Procurement Guidelines Questionnaire was conducted at 535 companies with (1) a 100% response rate and (2) 61% of all business partners had a score of at least 3.5 on a five-point scale, with an average score of 3.7. We will continue to conduct evaluation hearings and provide support to business partners that are not working on the 15 items (legal, human rights, environment, safety and health, quality) on which we absolutely require strict compliance as we conduct sustainable procurement activities throughout the entire supply chain.

Supply Chain Management

In conducting our procurement activities, we strive to uphold social responsibility (CSR) and contribute to the achievement of the Sustainable Development Goals (SDGs). We work to ensure fair and equitable business practices, improve quality and technology, and secure a stable supply system through the development of business continuity plans. Through these efforts, we aim to create an environment in which both our suppliers and our company can grow and develop together.

【Ratio of Purchase Amount by Region】

Sustainable Material Procurement, Including Supply Chains

We work to promote sustainable forest management in harmony with the environment by using forest resources effectively and efficiently through procurement of woodchips, the main raw material in paper.

Forestry Certification and Transactions with Suppliers (Use of Legal Wood Products)

Forestry certification is performed by third-party institutions to certify that only wood products from plantations or trees harvested legally with consideration given to the environment are used. It is one means of ensuring that raw materials are procured in line with our basic policy. Forestal Anchile Ltda., our forestry affiliate in the Republic of Chile, has obtained forestry certification. We also recommend to the Group’s woodchip suppliers that they become certified.

Effective Use of Domestic Resources (Promoting the Use of Thinnings)

Thinning is the thinning of trees that have been planted. Usually, plantation forests are planted at a high density in anticipation of natural decrease in the tree growth process and good or bad growth (not all trees grow straight). Therefore, when trees grow, the density is too high and sunlight does not reach the ground surface, leading to stunting the development of the understory vegetation (see photo (1)). By thinning the trees to create a forest environment suitable for growth (Photo #2), the growth of the understory vegetation is encouraged, the trees grow thicker trunks and roots, and the forest becomes healthy and resilient to wind and flood damage.

(1) Forests with a high density of trees

(2) Thinned timber after harvesting and prior to shipment

Japan has very rich forests, with approximately 70% of its land area covered by forests. However, due to the slump in domestic lumber prices, some forests that should be thinned are being left untouched. In addition, there are cases where thinned timber is left in the forests even when thinning is not profitable, causing damage when it flows into downstream areas during heavy rains and preventing the growth of vegetation on the ground surface. Since 2010, we have been increasing our purchases of thinned timber to prevent trees from being left unattended. By creating a healthy environment for forest growth, we are helping trees grow and absorbing a small amount of CO2. In addition, paper made from these thinned trees will become “KININARUKAMI”.