E/Environment

▶ Greenhouse Gases (GHG)

Scope1、Scope2

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Details FY2020 FY2021 FY2022 FY2023 FY2024 Target range
Scope 1 GHG emissions (thousand t) *1 3,661 3,878 3,491 3,153 3,227 Daio Paper and its
consolidated subsidiaries
Scope 2 GHG emissions (thousand t) *1 400 509 667 428 401
Total Scope 1 and Scope 2 GHG emissions (thousand t) 4,061 4,518*2 4,194*2 3,594*2 3,640*2
Scope 1 and Scope 2 GHG emission reduction rate (compared to FY2013) (%) 2.3 -1.6 6.9 19.2 18.2
GHG emission intensity Intensity (t/million yen of net sales) 7.2 7.4 6.5*2 5.4*2 5.4*2

Figures are rounded to the nearest thousand tons, so the sums do not necessarily equal the total.
*1 Third-party assurance from DNV Business Assurance Japan K.K. was obtained for Scope 1 and Scope 2 GHG emissions in FY2020 to FY2023.
*2 For FY2021 to FY2023, GHG emissions and GHG emission intensity include sales of Renewable Energy Certificates.

Scope3

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Category FY2021 FY2022 FY2023 FY2024 Target range
Domestic Overseas Total Domestic Overseas Total Domestic Overseas Total Domestic Overseas Total
1. Purchased goods and services (thousand t) * 683 1,321 1,220 296 1,516 1,300 372 1,672 FY2021: Daio Paper unconsolidated, FY2022: domestic production companies, FY2023: Daio Paper and its consolidated subsidiaries
2. Capital goods (thousand t) * 166 124 80 91 Daio Paper and its consolidated subsidiaries
3. Fuel and energy-related activities not included in Scope 1 and Scope 2 (thousand t) * 320 123 95 94 Daio Paper and its consolidated subsidiaries
4. Transportation and distribution (upstream) (thousand t) * 313 408 309 38 347 273 41 314 FY2021: Daio Paper unconsolidated, FY2022: domestic production companies, FY2023: Daio Paper and its consolidated subsidiaries
5. Waste generated in operations (thousand t) * 26 27 22 22 Daio Paper and its consolidated subsidiaries
6. Business travel (thousand t)* 2 2 2 2 Daio Paper and its consolidated subsidiaries
7. Employee commuting (thousand t)* 6 6 6 6 Daio Paper and its consolidated subsidiaries
8. Leased assets (upstream) Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable
9. Transportation and distribution (downstream) (thousand t) * 91 109 117 13 130 119 12 131 Daio Paper and domestic production companies (including the transportation of jumbo rolls between affiliated companies)
10. Processing of sold products (thousand t)
11. Use of sold products (thousand t)
12. End-of-life treatment of sold products (thousand t)* 176     178 175 183 Daio Paper and its consolidated subsidiaries
13. Leased assets (downstream) Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable
14. Franchise chain Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable
15. Investments Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable
Total 1,782 2,297 1,646 347 2,372 1,692 425 2,514

Figures are rounded to the nearest thousand tons, so the sums do not necessarily equal the total.
* Third-party assurance from DNV Business Assurance Japan K.K. was obtained for Scope 3 Category 1, 2, 3, 4 ,5, 6, 7, 9 and 12 GHG emissions from FY2021 to FY2023.

CO2 Fixation and Net Absorption Amounts in Production Forests and Environmental Conservation Forests

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  FY2020 FY2021 FY2022 FY2023 FY2024 Average
Total Scope 1 and Scope 2 GHG emissions (thousand t) 4,061 4,518 4,194 3,594 3,640 4,001
CO2 fixation amount (thousand t) 13,219 13,611 13,662 13,007 12,984 13,297
Net CO2 absorption amount (thousand t) -302 392 51 -655 -23 222
Forest area in calculation (ha) 27,343 27,828 28,163 27,427 27,870 27,726

Figures are rounded to the nearest thousand tons, so the sums do not necessarily equal the total.
* CO2 absorption calculation formula: https://www.daio-paper.co.jp/wp-content/uploads/environment_co2_202110.pdf

GHG Reduction

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  FY2021 FY2022 FY2023 FY2024 Target range
GHG emissions (thousand t) 4,518 4,194 3,594 3,640 Daio Paper and its consolidated subsidiaries
GHG reduction rate (compared to FY2013) (%) -1.6 6.9 19.2 18.2

* For FY2022 and FY2023, GHG emissions include sales of Renewable Energy Certificates.

▶ Energy-Related

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Details FY2021 FY2022 FY2023 FY2024 Target range
Energy input * Fossil fuels Coal (TJ) 29,425 23,734 22,987 24,338 Daio Paper and its consolidated subsidiaries
Petroleum (TJ) 2,587 5,280 5,170 4,021
Gases (TJ) 6,143 6,287 5,708 5,642
Purchased electricity (from fossil fuels) (GWh) 1,135 1,508 906 808
Subtotal (GWh) 11,731 11,311 10,312 10,227
Non-fossil fuels Black liquor (TJ) 21,239 20,637 26,329 26,453
Other biomass (TJ) 6,125 8,332 5,150 4,598
Waste (TJ) 8,816 7,196 6,005 6,333
Solar (GWh) 1 3 6 10
Purchased electricity (from non-fossil fuels) (GWh) 0 0 211 229
Subtotal (GWh) 10,048 10,046 10,629 10,355
Total (GWh) 21,779 21,357 20,941 20,582
Energy proportion Energy from fossil fuels (%) 54 53 49 50
Energy from non-fossil fuels (%) 46 47 51 50
Power generation capacity Thermal power generation (MW) 720 720 740 740
Solar power generation (MW) 1 5 7 8
Capital investment expenses for decarbonization (million yen) 2,171 14,944 2,772 1,803 Daio Paper and Iwaki Daio Paper
In-house carbon price (yen/t-CO2) 10,500 10,500 10,500 Daio Paper

* Energy input (GWh) = Calorific value of the fuel used (GJ) ÷ 0.0036 (GJ/GWh)
Unit calorific value is calculated using the Act on Rationalization of Energy Use and Shift to Non-fossil Energy and the Act on Promotion of Global Warming Countermeasures.
Figures are rounded to the nearest 1 GWh, so the sums do not necessarily equal the total.

▶ Environmental Accounting

Environmental Conservation Costs

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Details Major initiatives FY2021 FY2022 FY2023 FY2024
Investments Costs Investments Costs Investments Costs Investments Costs
1. Intra-business area costs (million yen) 1-1. Pollution prevention Measures against air pollution, water pollution, noise and vibrations, etc. 592 4,959 1,517 5,701 2,023 5,966 648 6,316
1-2. Global environmental conservation Domestic company-owned forest conservation, overseas forestry businesses, investment in energy conservation, etc. 343 353 116 140 80 347 32 325
1-3. Resource recycling Efficient use of resources, waste management costs, etc. 1,236 22,232 13,311 26,100 669 58,367 1,123 61,723
2. Upstream/downstream costs (million yen) Low-sulfur fuel purchase costs (variance) 1,667 1,896 1,727 1,743
3. Management activity costs (million yen) Employee education, ISO 14001 costs, analysis costs for air and water quality, etc., various conference operation costs, etc. 140 107 111 121
4. R&D costs (million yen) Development of products that contribute to environmental conservation, such as promoting the use of recovered paper, and reducing environmental impact at manufacturing stage 48 52 69 61
5. Social activity costs (million yen) Social contribution activities, group support, corporate activity reports, eco-products, etc. 60 57 78 63
6. Environmental damage costs (million yen) Imposition on pollution load (SOx), etc. 167 163 158 98
Total (million yen) 2,171 29,626 14,944 34,216 2,772 66,823 1,803 70,450

Scope is Daio Paper and Iwaki Daio Paper. Figures are based on the 2005 Environmental Accounting Guidelines published by the Ministry of the Environment.
Figures are rounded to the nearest million yen, so the sums do not necessarily equal the total.

Economic Effects Associated with Environmental Protection Measures

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Details FY2021 FY2022 FY2023 FY2024
Domestic company-owned forest income (million yen) 0 0 0 0
Cost reductions through energy conservation, etc. (compared to FY2013) (million yen) 353 169 2,901 2,566
└ Cost reductions due to reduced use of fossil fuels (million yen) 0.2 2,897 2,566

Scope is Daio Paper and Iwaki Daio Paper.

▶ Water Resources

Water Withdrawal

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Details FY2020 FY2021 FY2022 FY2023 FY2024
Water volume (thousand m3) 181,250 186,128 175,883 177,618 184,093
└ Breakdown of the amount of water used Industrial water (thousand m3) 158,844 161,833 154,788 157,444 162,917
Tap water supply (thousand m3) 631 2,519 633 619 609
Groundwater (thousand m3) 21,776 21,770 20,462 19,556 20,567
Water used for Paper & Paperboard business (thousand m3) 159,952 159,230 149,295 152,898 158,990
Water withdrawal intensity (thousand m3/million yen of net sales) 0.32 0.3 0.27 0.26 0.28

Scope is Daio Paper and its consolidated subsidiaries.
*1 Third-party assurance from DNV Business Assurance Japan K.K. was obtained for water volume from FY2020 to FY2023.
*2 Figures are rounded to the nearest thousand m3, so the sums do not necessarily equal the total.

Water Discharged

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Details FY2020 FY2021 FY2022 FY2023 FY2024
Total water discharged (thousand m3) 172,176 173,600 166,016 169,149 178,807
Water discharged by the three main factories (by factory) Daio Paper Mishima Mill (thousand m3) 99,724 96,937 93,114 97,380 104,040
Daio Paper Kani Mill (thousand m3) 20,504 20,828 19,194 19,574 20,705
Iwaki Daio Paper (thousand m3) 11,213 11,141 11,031 11,162 11,045

Scope is Daio Paper and its consolidated subsidiaries.
*1 Third-party assurance from DNV Business Assurance Japan K.K. was obtained for total water discharged from FY2020 to FY2023.
*2 Figures are rounded to the nearest thousand m3, so the sums do not necessarily equal the total.

Water Consumption

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Breakdown FY2020 FY2021 FY2022 FY2023 FY2024
Water consumption (thousand m3) 9,074 12,528 9,867 8,469 5,285
Water consumption intensity (thousand m3/million yen of net sales) 0.02 0.02 0.02 0.01 0.01

▶ Amount of Environmentally Hazardous Substances

Amount of Environmentally Hazardous Substances in Water Discharged

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Details FY2020 FY2021 FY2022 FY2023 FY2024
COD emissions (t) 8,325 8,158 8,091 7,910 8,340
└ Emission intensity (t/million yen of net sales) 0.015 0.013 0.013 0.012 0.012
Suspended substances (SS) emissions (t) 2,712 2,035 2,207 1,691 1,866
└ Emission intensity (t/million yen) 0.005 0.004 0.004 0.003 0.003
Nitrogen emissions 535 490 477 572 622
└ Emission intensity (t/million yen of net sales) 0.0010 0.0009 0.0009 0.0011 0.0009
Phosphorus emissions (t) 58 62 102 78 70
└ Emission intensity (t/million yen of net sales) 0.00011 0.00011 0.00019 0.00014 0.00010

Scope is Daio Paper and its consolidated subsidiaries.

Amount of Environmentally Hazardous Substances in Released Gases

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Details FY2020 FY2021 FY2022 FY2023 FY2024
Sulfur oxide (SOx) emissions (t) 1,348 1,321 1,179 1,019 1,175
└ Emission intensity (t/million yen of net sales) 0.0024 0.0022 0.0018 0.0015 0.0018
Nitrogen oxides (NOx) emissions (t)  6,428 6,611 6,256 6,175 6,373
└ Emission intensity (t/million yen of net sales) 0.011 0.011 0.010 0.009 0.010
Soot and dust emissions (t) 315 313 274 196 325
└ Emission intensity (t/million yen of net sales) 0.00056 0.00051 0.00042 0.00029 0.00049
VOC emissions (t) 140.3 66.1 50 54.5 48.9
└ Emission intensity (t/million yen of net sales) 0.000249 0.000108 0.000077 0.000081 0.000073

Scope is Daio Paper and its consolidated subsidiaries.

Waste/PRTR Chemicals

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Details FY2020 FY2021 FY2022 FY2023 FY2024
Amount of industrial waste created (thousand t) *1 *2 290 307 289 258 270
Industrial waste recycled (thousand t) *1 *2 287 302 281 254 265
Reuse ratio for industrial waste (%) 98.7 98.4 97.1 98.3 98.0
Landfill volume (final disposal volume, thousand t) *2 3.8 5 8.5 4.5 5.5
Amount of specially controlled industrial waste generated (thousand t) *2 0.037 0.596 0.442 0.502 0.505

Scope is Daio Paper and its consolidated subsidiaries.
*1 Third-party assurance from DNV Business Assurance Japan K.K. was obtained for the amounts of industrial waste created and recycled.
*2 Calculated based on the bone-dry amount.

▶ Primary Raw Materials Usage

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Primary raw material type FY2020 FY2021 FY2022 FY2023 FY2024
Chips and wood (thousand t) 2,480 2,562 2,528 2,509 2,459

▶ Resource recycling

Promotion of Hard-to-Recycle Recovered Paper Usage

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Details FY2020 FY2021 FY2022 FY2023 FY2024 FY2025
target value
Hard-to-recycle recovered paper usage (thousand t) 251 254 223 227 204
Ratio of hard-to-recycle recovered paper pulp in paperboard produced at the Mishima Mill (%) 15.7 15.7 14.2 17 14.9 15

Plastic Resource Recycling *

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Details FY2020 (reference) FY2021 FY2022 FY2023 FY2024
Total waste plastic emissions Plastic containers and packaging materials (Home & Personal Care products) (t) 1,094 1,169 1,048 804 831
Home & Personal Care products intensity (kg/production t) 1.96 2.03 1.87 1.39 1.40
Plastic materials (paper and paperboard) (t) 778 738 800 634 692
Waste plastic derived from recovered paper (t) 108,012 116,048 111,422 95,130 93,859
Other waste plastics (t) 550 781 1,048 396 341
Total (t) 110,434 118,736 114,318 96,964 95,723
Effective usage (thermal recycling (energy recovery)) (t) 106,008 113,750 106,538 92,658 91,404
Effective usage rate (%) 96 95.8 93.2 95.6 95.5

* Reference: Response to the Act on Promotion of Resource Circulation for Plastics, https://www.daio-paper.co.jp/wp-content/uploads/20240710_Act-on-Promotion-of-Recycling-of-Plastic-Resources.pdf

▶ Status of Acquisition of Environmental Management System (EMS) Certification *

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Breakdown End of FY2021 End of FY2022 End of FY2023 End of FY2024 Target range
Number of ISO 14001-certified offices/all offices (cases) 39/58 39/58 39/58 39/59 Daio Paper and its consolidated subsidiaries

51 domestic and 7 overseas production sites are designated as “sites requiring certification.”
* Reference: https://www.daio-paper.co.jp/wp-content/uploads/202503_ISO.pdf

▶ Forest-Related

Forest Area (as of end of FY2024)

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Country Production forest Environmental conservation forest Other (forest roads, industrial lands, etc.) Total Forest certification codes
Chile (ha) 30,409 26,316 2,620 59,345 GFA-FM/COC-003155, GFA-CW/FM-003156, BVCMFS9288
Japan (company-owned forests/shared forests) (ha) 1,634 0 0 1,634
Total 32,043 26,316 2,620 60,979

Rate at Which Forest Certification Is Obtained

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  FY2020 FY2021 FY2022 FY2023 FY2024
Overseas owned forests Area with forest certification obtained (ha) 57,760 58,302 58,588 58,587 58,587
Rate at which forest certification is obtained (%) * 99 99 99 99 99
Domestic company-owned forests Area with forest certification obtained (ha) 0 0 0 0 0
Rate at which forest certification is obtained (%) 0 0 0 0 0
Overall rate at which forest certification is obtained (%) 97.7 97.7 97.8 97.8 96.1
Certified material ratio: Chips (%) 100 100 100 100 100
Certified material ratio: Pulp (%) 100 100 100 100 100

* The difference between total area and forest-certification certified area is the area of forests and other areas that are not subject to forest certification. Excluding areas that are not subject to forest certification, the rate of forest certification acquisition for overseas plantation forests is 100%.

▶ Resource Procurement

Wood Chip Procurement Volume

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Procurement country FY2021 FY2022 FY2023 FY2024 Primary raw materials
(Thousand BDT) (%) (Thousand BDT) (%) (Thousand BDT) (%) (Thousand BDT) (%)
Japan 656 25.4 639 25.2 604 24.1 570 23.2 Sawmill waste
United States 179 6.9 203 8 231 9.2 248 10.1 Sawmill waste, raw wood cutting
Australia 548 21.2 507 20 482 19.2 459 18.7 Sawmill waste, raw wood cutting
New Zealand 0 0 0 0 0 0 7 0.3
Vietnam 994 38.5 989 38.9 982 39.2 949 38.7 Raw wood cutting
Chile 196 7.6 180 7.1 206 8.2 221 9.0 Raw wood cutting
Thailand 0 0 22 0.9 0 0 0 0 Raw wood cutting
Russia 11 0.4 0 0 0 0 0 0 Raw wood cutting
Total 2,583 100 2,541 100 2,504 100 2,454 100

* Figures are rounded to the nearest thousand BDT, so the sums do not necessarily equal the total.

Purchased Pulp Procurement Volume

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Procurement country FY2021 FY2022 FY2023 FY2024 Primary raw materials
(Thousand ADT) (%) (Thousand ADT) (%) (Thousand ADT) (%) (Thousand ADT) (%)
United States 60 42.3 50 44.8 13 27.5 10 25.6 Sawmill waste, natural forest lower-quality materials, etc.
Canada 25 17.6 17 15.1 14 29.7 12 30.8 Sawmill waste, natural forest lower-quality materials, etc.
Brazil 19 13.8 20 18.1 4 7.7 4 10.3 Plantation forest trees
Chile 1 0.9 2 1.5 1 3.0 2 5.1 Plantation forest trees
Japan 10 6.8 9 8.4 3 6.4 3 7.7 Sawmill waste
South Korea 14 9.7 5 4.2 9 19.6 7 17.9 Plantation forest trees, natural forest lower-quality materials, etc.
Indonesia 7 4.9 4 3.8 2 3.6 0 0 Plantation forest trees
Sweden 4 2.5 3 2.6 1 2.5 1 2.6 Sawmill waste, natural forest lower-quality materials, etc.
Russia 1 0.8 2 1.5 0 0 0 0 Sawmill waste, natural forest lower-quality materials, etc.
Finland 1 0.6 0 0 0 0 0 0 Sawmill waste, natural forest lower-quality materials, etc.
Total 141 100 112 100 47 100 39 100

* Figures are rounded to the nearest thousand ADT, so the sums do not necessarily equal the total.

Traceability Acquisition Rate

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Details FY2021 FY2022 FY2023 FY2024
Chip traceability acquisition rate (%) 100 100 100 100
Pulp traceability acquisition rate (%) 100 100 100 100

Utilization of Recycled Resources

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Details FY2021 FY2022 FY2023 FY2024
Procurement rate of wood products/materials or recycled wood (%) 29.2 28.2 26.2 25.7

Amount of Thinned Wood Purchased

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Details FY2021 FY2022 FY2023 FY2024
Total (BDT) 6,685 7,225 6,281 7,119

Compliance with Environmental Laws and Regulations

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Details FY2021 FY2022 FY2023 FY2024
Number of environment-related violations (water-related) 0(0) 0(0) 2(0) 0(0)
Fines and administrative penalties related to the environment None (None) None (None) None (None) None (None)

* In FY2023, there was a violation with the 23B dioxin standards being exceeded at Daio Paper Mishima Mill and Iwaki Mill.
* Scope is Daio Paper and its domestic consolidated subsidiaries.

S/Society

▶ Employee Status*

Number of Employees, Employment Status, etc.

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Details FY2021 FY2022 FY2023 FY2024
Daio Paper unconsolidated Consolidated Daio Paper unconsolidated Consolidated Daio Paper unconsolidated Consolidated Daio Paper unconsolidated Consolidated
Number of employees (people) *1 2,725 12,917 2,445 12,634 2,288 12,372 2,332 12,191
└ Percentage of female employees (%) 16.6 15.8 16.8 19.1 18.7
Number of new graduates hired (full-time) (people) 70 105 69 38
└ Percentage of female new graduates hired (%) 21.4 26.7 20.3 15.8
Number of experienced hires (full-time) (people) 77 31 52 63
Percentage of female experienced hires (%) 29.9 41.9 19.2 34.9
Percentage of experienced hires (compared with the total number of new graduates who joined the company in the same fiscal year) (%) 52.4 22.8 43 62.3
Number of non-regular employees Men 30 23 21 22
Women 53 23 19 45
└ Percentage of non-regular employees (%) 29.9 41.9 19.2 34.9
Average number of years employed for full-time employees (years) Men 19.9 20.6 20.8 21.7
Women 9.9 10.9 11.2 11.3

*1 Scope: Daio Paper Corporation and its consolidated subsidiaries

Promotion of Diversity: Active Engagement of Diverse Human Resources

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Details FY2021 FY2022 FY2023 FY2024
Daio Paper unconsolidated Consolidated Daio Paper unconsolidated Consolidated Daio Paper unconsolidated Consolidated Daio Paper unconsolidated Consolidated
Percentage of female officers (Directors and Audit & Supervisory Board Members) (%) *1 12.5 12.5 11.8 14.3
Percentage of female managers (%) 2.8 2.7 5.2 2.7 6.4 2.8 7.2
Percentage of female leaders (managerial position employees equivalent to chiefs) (%) 8.3 11.1 13.8 6.8 16 7.2
Percentage of female employees by job function (%) Managerial positions 15.8 18.4 18.7 19.1
Regional-specific positions 97.8 99.4 96.5 97.6
Technical positions 0.9 0.6 0.4 0.6
Difference in wages between men and women (%) *2 All workers 64.7 65.6 66.7 61.1
Full-time workers 66.3 66.6 67.8 67.9
Part-time/fixed-term labor workers 79.4 83.9 87.2 56.2
Percentage of experienced hires employed in managerial positions (%) 28.2 28.2 27.1 27.8
Percentage of employed people with disabilities (%) 2.4 2.4 2.6 2.6 2.5
Paternity leave uptake status Number of employees eligible for acquisition (people) 45 52 33 37 114
Number of recipients (people) 13 43 30 31 88
Usage rate (%) *3 28.9 82.7 79.3 90.9 65.3 83.8 77.2
Average number of days acquired (days) *3 74 32 48 45 72 55
Status of male employees taking parental leave (GOO.N SukuSuku Leave program) Number of recipients (people) 43 32 25 24
Usage rate (%) 95.6 61.5 75.8 64.9
Status of returning to work from parental leave Male employees (people) 14 42 25 24
Return to work rate (%) 100 100 83.3 77.4
Female employees (person) 17 16 15 14 35
Return to work rate (%) 89.5 100 78.9 100 92.7
Employment status at 12 months post-parental leave Male employees (people) 12 42 38 29
Retention rate (%) 85.7 95.5 90.5 96.6
Female employees (person) 17 15 12 6
Retention rate (%) 100 93.8 75 75

*1 Scope: Daio Paper Corporation and its consolidated subsidiaries
*2 Calculated based on the Act on the Promotion of Women’s Active Engagement in Professional Life (Act No. 64 of 2015). Percentage of the average female wage paid in the relevant business year (excluding commuting expenses, including bonuses/extra wages), assuming that the male average is 100.
*3 Scope: Daio Paper Corporation and domestic consolidated subsidiaries that are obliged to disclose the percentage of male employees taking parental leave (companies that continuously employ more than 1,000 workers)

▶ Employee Development

Development-Related Training

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Details FY2021 FY2022 FY2023 FY2024
Development-related training
Training cost per person (thousand yen) 15 20 17 28
Number of participants (people) 1,472 1,244 2,007 2,684

Scope is Daio Paper.

Compliance-Related Training

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Details FY2021 FY2022 FY2023 FY2024
Overall compliance (attendance rate) 97.60% 86.90% 91.20%
New employee training (number of times) Once Once Once Once

Scope is Daio Paper.

▶ Respect for Human Rights

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Details FY2021 FY2022 FY2023 FY2024
Number of serious human rights violations in the supply chain (cases) 0 0 0 0
Human rights-related training Number of participants (people) 6,241 8,702 9,460
Participation rate (%) 95.9 96.6 98.6

Scope is Daio Paper and its domestic consolidated subsidiaries.

▶ Sustainable Procurement

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Details FY2021 FY2022 FY2023 FY2024
Percentage of suppliers who agreed to the SDGs Procurement Guidelines (%) 58.4 99.4
Response rate of the SDGs Procurement Guideline Survey for suppliers (%) 95 96 100 100
└ Percentage of suppliers rated 3.5 or higher on a 5-point scale (%) 62 61 61 61

▶ Occupational Health and Safety

Education and Training on Occupational Health and Safety

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Details FY2021 FY2022 FY2023 FY2024
Hands-on training for hazardous work New employees Main mills in Japan (Mishima Mill and Kani Mill) Once a year Once a year Once a year Once a year
Lifesaving training sessions All employees Main mills in Japan (Mishima Mill and Kani Mill) None 4 times a year 4 times a year in some departments (direct)* All factories: Canceled due to COVID-19 4 times a year in some departments (direct)* All factories: Canceled due to COVID-19
Disaster drills All employees Mishima Mill 2 times a year 2 times a year 2 times a year 2 times a year
Kani Mill and nearby affiliated companies 3 times a year
(including Kawabe)
3 times a year
(including Kawabe)
3 times a year
(including Kawabe)
3 times a year
(including Kawabe)

Lost Time Injury Frequency Rate

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Details FY2021 FY2022 FY2023 FY2024
Lost time injury frequency rate *1 *2 Daio Group Overall 1.14 1.01 0.88 0.93
Domestic offices 1.23 1.16 0.98 0.99
Overseas offices 0.56 0.56 0.57 0.74
Manufacturing of pulp, paper and processed paper products *3 1.85 1.59 1.38 2.07

Aggregation period is from January 1 to December 31.
*1 Third-party assurance from DNV Business Assurance Japan K.K. was obtained for the lost time injury frequency rate.
*2 The rate is calculated by dividing the number of casualties from occupational accidents during a given period by the total number of actual working hours in the same period, then multiplying by 1,000,000. This calculation only includes casualties from occupational accidents resulting in at least one day of absence from work or the loss of a body part or function.
*3 Source: Ministry of Health, Labour and Welfare survey on occupational accident trends in pulp, paper, and processed goods manufacturing (offices of 100 people or more)

Occupational Accident Severity Rate

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Details Target FY2024
Occupational accident severity rate *1 Entire Daio Group 0.07

Aggregation period is from January 1 to December 31.
*1 Third-party assurance from DNV Business Assurance Japan K.K. was obtained for the severity rate.

Number of Lost-Time Injuries

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Details 2021 2022 2023 FY2024
Lost-time injuries (cases) Daio Group (including non-consolidated subsidiaries) * Overall 27 28 24 25
Domestic offices 25 24 20 20
Overseas offices 2 4 4 5
Outside of the Group   16 17 28 19

Aggregation period is from January 1 to December 31.
This calculation only includes casualties from occupational accidents resulting in at least one day of absence from work or the loss of a body part or function.
* Excluding non-production sites (sites that do not conduct manufacturing, such as sales sites and offices where staff departments are employed).

ISO 45001 Certification Results

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Details FY2021 FY2022 FY2023 FY2024 Target range
Number of ISO 45001-certified offices/number of offices requiring certification (cases) 13/58 13/58 13/58 13/58 Daio Paper and its consolidated subsidiaries

51 domestic and 7 overseas production sites are designated as “sites requiring certification.”

▶ Status of Acquisition of Quality Management System (QMS) Certification *

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Details FY2021 FY2022 FY2023 FY2024 Target range
Number of ISO 9001-certified offices/number of offices requiring certification (cases) 47/58 47/58 47/58 47/58 Daio Paper and its consolidated subsidiaries

51 domestic and 7 overseas production sites are designated as “sites requiring certification.”
* Reference: https://www.daio-paper.co.jp/wp-content/uploads/202103_ISO.pdf

▶ Health and Productivity Management

Promotion of Work-Life Balance

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Details FY2021 FY2022 FY2023 FY2024 Target range
Daio Paper unconsolidated Consolidated Daio Paper unconsolidated Consolidated Daio Paper unconsolidated Consolidated Daio Paper unconsolidated Consolidated
Average overtime hours
(excluding officers and managers, hours per month)
22.6 23 19.9 21.3 18 21.1 18.2 Daio Paper and its consolidated subsidiaries
Annual leave usage rate (%) 71.7 75 72.6 81.3 74.8 77.8 75.7
Total hours worked (H) 2028 2013 1991 1980 Daio Paper

Improvement of Lifestyle Customs *

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Details FY2021 FY2022 FY2023 FY2024 Target range
Daio Paper unconsolidated Consolidated Daio Paper unconsolidated Consolidated Daio Paper unconsolidated Consolidated Daio Paper unconsolidated Consolidated
Ratio of those who regularly eat breakfast (%)          69.7 68.6 66.3 68.5 65.5 Daio Paper and its domestic consolidated subsidiaries
Ratio of those who regularly exercise moderately (%) 22.3 23.9 24.1 24.9 25
Good sleeper ratio (%) 72 70.3 69.5 58.2 69.0 62.9
Smoker ratio (%) 23.9 22.2 30 22.2 30.1 36.3 42.1

* Figures are obtained from a questionnaire at the time of the medical checkup

Extensive Mental Healthcare

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Details FY2021 FY2022 FY2023 FY2024 Target range
Daio Paper unconsolidated Consolidated Daio Paper unconsolidated Consolidated Daio Paper unconsolidated Consolidated Daio Paper unconsolidated Consolidated
Stress check testing rate (%) 100 100 100 100 Daio Paper and its domestic consolidated subsidiaries
High-stress ratio (%) 13.1 13 12.1 17.4 11.5 17.3
Percent of employees absent due to mental health
issues (%)
1.2 1.4 1 0.9

Early Detection of Disease/Early Treatment

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Details FY2021 FY2022 FY2023 FY2024 Target range
Daio Paper unconsolidated Consolidated Daio Paper unconsolidated Consolidated Daio Paper unconsolidated Consolidated Daio Paper unconsolidated Consolidated
Health checkup rate (%) 100 100 100 100 Daio Paper and its domestic consolidated subsidiaries
Follow-up checkup uptake rate (%) 71.4 73.5 64.2 37 81.4 60.8

Productivity and Job Satisfaction Metrics

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Details FY2021 FY2022 FY2023 FY2024
Daio Paper unconsolidated Daio Paper unconsolidated Daio Paper unconsolidated Daio Paper unconsolidated
Presenteeism (%) *1 *2 58.5 59.4 58.8
Absenteeism (days) ※1 4.8 5.2 4.8
Improvement of work engagement (points) *3 3.2 3.1 3.1 3.1

*1 Obtained through a WHO-HPQ style survey.
*2 Work performance indicators. The closer to 100%, the better.
*3 Obtained from the engagement survey. The closer to 5 points, the better the work environment.

▶ Coexistence with Local Communities

Number of Certified Attento Meister Professionals

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Details FY2020 FY2021 FY2022 FY2023 FY2024
Cumulative number of certified professionals (people) 1,805 2,778 4,787 7,294 10,959

Social Contribution Activity Expenses

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Details FY2020 FY2021 FY2022 FY2023 FY2024
Donations (million yen) * 33 26 41 51 42

* Donations to: Government and public organizations, neighborhood associations, political parties and political party fundraising organizations, etc.

G/Governance

▶ Composition of Board of Directors (Directors and Audit & Supervisory Board Members)

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Details As of June 2025
Number of Directors (people) 15
Number of Independent Outside Directors (people) 7
Number of female Directors (people) 2
Percentage of female Board Members (%) 13.3
Number of Directors who are Audit & Supervisory Committee Members (people) 5
Number of which are Independent Outside Directors (people) 3
* On June 26, 2025, the Company transitioned to a company with audit and supervisory committee

▶ Attendance at Board of Directors, Audit & Supervisory Board, Nomination Committee and Remuneration Committee meetings (FY2023)

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Job title Name Attendance
Board of Directors Audit & Supervisory Board Nomination Committee Remuneration Committee
Representative Director, President and Chief Executive Officer Yorifusa Wakabayashi 14/14 meetings 5/5 meetings 8/8 meetings
Representative Director, Executive Vice President Hiroshi Yamasaki 14/14 meetings
Director, Managing Executive Officer Atsushi Ishida 14/14 meetings
Director, Managing Executive Officer Hiroyuki Fujita 14/14 meetings
Director, Managing Executive Officer Toshikatsu Tanahashi 14/14 meetings
Director, Managing Executive Officer Shuhei Shinagawa 14/14 meetings
Outside Director Naosuke Oda 14/14 meetings 5/5 meetings 8/8 meetings
Outside Director Makoto Horie 11/11 meetings
Outside Director Takako Masai 11/11 meetings
Outside Director Yoshihiro Iwata ー (Before taking office)
Director, Full-Time Audit & Supervisory Committee Member Yukihiro Tanaka 14/14 meetings 10/10 meetings
Director, Full-Time Audit & Supervisory Committee Member Yosuke Kimura ー (Before taking office)
Outside Director, Audit & Supervisory Committee Member Yoichi Takei 14/14 meetings 5/5 meetings 8/8 meetings
Outside Director, Audit & Supervisory Committee Member Kyoko Okada 13/14 meetings 13/14 meetings
Outside Director, Audit & Supervisory Committee Member Yoshikuni Noguchi 11/11 meetings 10/10 meetings

▶ Total Remuneration, etc. for Directors and Audit & Supervisory Board Members (FY2024)

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Officer category Total amount of remuneration, etc. (million yen) Total amount by type of remuneration, etc. (million yen) Number eligible (people)
Basic compensation *1 Bonuses *2 Stock-based compensation *3
Director 242 201 10 30 14
└ of which are Outside Directors 42 42 6
Audit & Supervisory Board Members 50 50 7
└ of which are Outside Audit & Supervisory Board Members 27 27 4

*1 Including compensation for the four Directors and three Audit & Supervisory Board Members retired (completed term of office) at the 113th Annual General Meeting of Shareholders Meeting on June 26, 2024
*2 Includes provision for Directors’ bonuses for the relevant fiscal year
*3 Includes provision for stock benefits for the relevant fiscal year

▶ Amount of Remuneration, etc. for Accounting Auditors

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Item FY2021 FY2022 FY2023 FY2024
Amount of remuneration, etc. for services provided in Article 2, Paragraph 1 of the Certified Public Accountants Act (millions of yen) 146 153 130 189
Total amount of money and other financial benefits payable to the Accounting Auditor by the Company and its consolidated subsidiaries (million yen) 170 173 143 198

* Since the audit agreement between the Company and the Accounting Auditor does not separate the amount of audit fees, etc., for audits under the Companies Act and audits under the Financial Instruments and Exchange Act, they cannot be effectively categorized so the above amount is the total amount.
* Based on the “Practical Guidelines for Cooperation with Accounting Auditors” published by the Japan Audit & Supervisory Board Members Association, the Audit & Supervisory Board has reviewed the trends in results of audit hours and remuneration amounts in audit plans for past fiscal years, by audit item and tier, as well as the status of the performance of the Accounting Auditors’ duties, and as a result of examining the appropriateness of audit plans and remuneration amounts for the current fiscal year, has consented to Article 399, Paragraph 1 of the Companies Act regarding the remuneration, etc. of the Accounting Auditor.

▶ Fines, Penalties, Settlements and Dismissal Caused by Corruption

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2021 2022 2023 2024
Fines, penalties and settlements for serious violations of laws and regulations related to corruption and bribery (cases) 0 0 0 0
Fines, penalties and settlements for serious violations of laws and regulations related to corruption and bribery (yen) 0 0 0 0
Employees who have been disciplined for corruption or bribery violations (people) 0 0 0 0

* Scope is Daio Paper.

▶ Reports to the Corporate Ethics Hotline

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  FY2021 FY2022 FY2023 FY2024
Number of reports (cases) 37 27 44 42

▶ Political Contributions

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Item FY2021 FY2022 FY2023 FY2024
Political contributions (thousand yen) 9420 3220 3720 5990

* Scope is Daio Paper.

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