To ensure the procurement of environmentally friendly raw materials, Daio Paper has established its Guiding Principle and Basic Policies for the Procurement of Wood-Based Raw Materials, and is promoting the procurement of certified (forest certification) materials. In addition, in March 2018, Daio Paper has completed the registration as a Wood-Related Business Entity under the Clean Wood Act.

Guiding Principle and Basic Policies for the Procurement of Wood-Based Raw Materials

We have formulated the following guiding principle and basic policies for the procurement of wood-based raw materials in accordance with the Act on Promoting Green Purchasing and the Clean Wood Act, as well as to meet rising demand for products using environmentally friendly wood.

Under the Act on Promoting Green Purchasing (enforced in April 2009), companies are required to submit certification to prove that designated procurement items under government public procurement satisfy the following crieria at every stage of the production process:

Illegally harvested wood is not used as a raw material of virgin pulp
Raw materials are harvested from sustainable forests

The Daio Paper Group purchases its raw materials in accordance to the guidelines of the Forestry Agency of Japan. We ensure the legality of our purchased wood through certification by third parties, and for wood without forest certifications, we conduct traceability investigations to check the logging area, distribution routes, etc. for all suppliers to ensure that the wood are legally logged.

Guiding Principle

In accordance to the basic policies of the DAIO Global Environment Charter, the Daio Paper Group will promote sustainable forest management in harmony with the environment by effectively and efficiently utilizing forest resources through its procurement of wood-based raw materials, and by showing consideration to the conservation of biodiversity.

Basic Policies

1.Purchase of plantation timber, or reused or unused timber

We procure only wood-based raw materials produced from plantation-grown timber, or reused or unused wood materials.

2.Promotion of sustainable forest management

We procure only materials that are traceable from their logging source to distribution routes and proved to have been legally logged from forests where sustainable forest management* are carried out. (Reused and unused wood materials are traced to the lumber mill or the chip mill.)

3.Increase in certified (forest certification) timber

All of Daio Paper’s forestry business has obtained forest certification. (We have obtained forest certification for the entire scope of our Chilean subsidiary’s forestry business.) We encourage suppliers who have not acquired forest certification to acquire certification.

4.Expansion of group-owned overseas forested area

In order to protect the natural environment and mitigate global warming, the Daio Paper Group is expanding the area of its forested area overseas. We seek to use our forested area to absorb and sequester the carbon dioxide emitted in the production activities of the group.

5.Compliance

The Daio Paper Group observes the laws and corporate ethics and conducts fair and impartial transactions in its procurement of wood-based raw materials.

※ Sustainable forest management ensures that forest areas are not reduced and that consideration is given to the society and environment.

Certification of the Legality of the Procurement of Wood-Based Raw Materials

The Daio Paper Group has established a due diligence manual to verify the legality of its procurement of wood-based raw materials. It conducts investigations on all domestic and overseas suppliers of its wood-based raw materials regarding their distribution route from logging to woodchip production. This investigation ensures that all wood-based raw materials delivered to the Daio Paper Group have been logged legally, and once a year, the effectiveness of this investigation is verified through audits by external organizations.

Acquisition of Forest Certification

Forest certification is a system under which third-party organizations evaluate and certify that there is a system in place to ensure that products are manufactured using raw materials from forests that are appropriately managed.
Types of certification include the Forest Management (FM) Certification, which certifies that the forest is managed in a way that shows consideration to the environment, contributes to the society, and is economically sustainable, and the Chain of Custody (CoC) Certification, which certifies that certified wood materials are managed separately from other wood materials (non-certified, etc.) from processing to distribution.
Among Daio Paper’s initiatives for overseas forestation, the forestry business in the Republic of Chile in South America has acquired FSC® (Forest Stewardship Council®) Forest Certification in December 2002 and PEFC (Programme for the Endorsement of Forest Certification Schemes) Forest Certification in September 2008.

Forestry Business in Chile

FM Certificate from FSC®

FM Certificate from PEFC

We have also acquired CoC Certification for the production of paper.

FSC CoC Certificate

PEFC CoC Certificate

FSC® Forest Certification

An international certification by a non-governmental organization established in 1993 that established a global standard on forest management.

(FSC-C015579)

PEFC Forest Certification

The world’s largest forest certification system operated by a non-governmental organization established in 1999 with the aim of promoting sustainable forest management. PEFC is a mutual recognition scheme in which obtaining a national forest certification that meets the requirements of PEFC and hence endorsed by PEFC would signify obtaining PEFC certification. The National Forest Certification (CERTFOR) in Chile, where Daio Paper’s forestry business is located, is endorsed by PEFC.

Completion of Registration as a Wood-Related Business Entity under the Clean Wood Act

The Act on Promotion of Use and Distribution of Legally-Harvested Wood and Wood Products (the Clean Wood Act) is established with the objective of promoting the use and distribution of wood and wood products that comply with the laws and regulations of Japan and the countries of origin. The Act was promulgated on May 20, 2016, and went into force on May 20, 2017.

On March 19, 2018, Daio Paper completed the registration as a Type I and Type II Registered Wood-Related Business Entity as stipulated under the Clean Wood Act.

Type I and Type II Registered Wood-Related Business Entities are entities that are verified by “Registering Organizations”, which are designated by the Government of Japan, to take appropriate measures to ensure the use of legally-logged wood, etc.

Registration Details

Registration No.: JIA-CLW-I, II 17018
Validity of Registration: March 19, 2018 to March 18, 2023 (for five years)
Registering Organization: Japan Gas Appliances Inspection Association (JIA)

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