Pulp Procurement Policy

1. We will prioritize procurement from suppliers who demonstrate consideration for biodiversity and the global environment.
2. We will preferentially purchase pulp sourced from timber grown in appropriately managed forests that have been granted forest certifications from third-party environmental organizations.
3. We will not procure wood pulp from the following forests or regions:
   • natural forests that do not readily regenerate, such as the primeval boreal forests of Canada, Alaska, and Russia; the tropical forests and peat bogs of Indonesia, the Amazon, and West Africa; and other endangered ancient forests;
   • illegally logged forests;
   • illegally registered forests;
   • areas where logging practices violate the rights of indigenous peoples and local residents;
   • plantations established after 1994; and
   • wood that has been genetically modified.
4. If we determine that the raw material we have procured has been sourced from a protected forest identified above or is the product of illegal logging operations, we will reexamine our supply chain and modify our procurement methods. We will also commit to reviewing our business relationships with our suppliers when we deem it necessary.
5. We will collaborate with various organizations (such as Canopy) on the above initiatives in the interests of forest protection and will promote sustainable forest management and the ongoing protection of endangered forests.

Recognizing, Respecting and Protecting Human Rights and the Rights of Local Communities

Daicel expects its suppliers to respect the Universal Declaration of Human Rights and recognize the right of indigenous peoples and local communities to use the territories, land, and resources under their management and afforded to them by laws and customs. Daicel supports the right of indigenous peoples to free, prior, and informed consent (FPIC) in the allocation of new logging concessions or woodlot development. Should a complaint, dispute, or human rights violation occur, we will require the supplier concerned to resolve and correct it through a transparent and consensual processes and to provide accountability.

Reducing Greenhouse Gas Emissions

Daicel recognizes the importance of forests as carbon sinks and supports efforts to reduce the loss of forests offering high value as stores of carbon. Therefore, we urge our suppliers to avoid harvesting in such areas and give priority to doing business with suppliers who adopt proactive strategies to effectively reduce greenhouse gas emissions.

Developing Innovative Materials with a Focus on Sustainability

Daicel collaborates with its suppliers and customers to explore product development using sustainable raw materials and manufacturing methods.

Securing the Transparency and Traceability of Our Raw Material Procurement Process

Daicel is committed to ensuring the transparency of its supply chain and is improving the traceability of its wood-sourced pulp and other raw materials.