Action Plan

Risks	Opportunities
Decline in credibility that would result from the occurrence of consumers and service users' safety or health issues.	Increase in demand for food safety and security and health improvement. Establishment of safe, stable supply system for product enabled by the consideration of human rights and improvement of work environment in the supply chain. Winning customer trust or creating new businesses with a stable supply of environmentally friendly resources and materials.

Materiality	Issues to Address	Business Area	Commitment	Specific Approach	Performance Indicators	Degree of Progress
Textile Company
Ensure stable procurement and supply	Reducing our environmental burden in manufacturing processes	Textile products in general	We will promote the building of value chains starting from raw materials focused on sustainable materials.	Promote the RENU project aiming to realize a circular economy in textile industry. Aim to further enhance and expand the handling of sustainable materials.	Contribute to fostering of environmental awareness and reducing our environmental burden by promoting the RENU project and further enhancing and expanding the handling of sustainable materials.	Several well-known brands have adopted the recycled materials of the RENU project we started in FYE 2020. Various media organizations also featured the project. We have contributed to fostering environmental awareness through this.
Respect human rights Ensure stable procurement and supply	Establishing a supply chain reflecting consideration for human rights and the environment	Textile products in general	We will promote dealings with companies which respect human rights and which engage in environmental management throughout their entire supply chains.	Strive to understand at an early stage the human rights, social and environmental risks in supply chains by continually conducting surveys on major suppliers.	Conduct on-site visit surveys and questionnaires at more than 50 major suppliers a year on an ongoing basis.	We conducted surveys and questionnaires on a total of 57 companies mainly in regions where the risk of COVID-19 had been lowered at an early stage (e.g., China and Vietnam) in light of the global pandemic in FYE 2021.
Food Company
Contribute to healthier and more enriched lifestyles	Supplying safe, secure food	Overall food-related businesses	We will select and concentrate on suppliers to stably procure safe, secure food.	We will aim to strengthen the food safety management structures in our suppliers. We will do this by persons with certifications/qualifications related to the Food Safety Management System (FSMS) taking the central role in enhancing supplier audits and making requests for improvements.	Stably supply safe and secure food by enhancing the audits and guidance for suppliers mainly by the persons with certifications/qualifications related to the Food Safety Management System (FSMS).	We are continuing to stably supply safe and secure food. We are achieving this by continuing to enhance the audits and guidance for suppliers mainly by the persons with certifications/qualifications related to the Food Safety Management System (FSMS).
Respect human rights Ensure stable procurement and supply	Establishing a supply chain reflecting consideration for human rights and the environment	Provisions field	We will develop a procurement structure compliant with third-party body certification and supplier-specific codes of conduct.	We will promote procurement compliant with supplier-specific codes of conduct in coffee bean and cacao bean producing countries. We will strengthen the handling of oil certified by the RSPO - a third-party certification organization for palm oil. We will support the establishment of a promotion and distribution system in Japan for MSPO/ISPO in cooperation with domestic industrial associations. The aim of this is to encourage the use of certified oil systems in producing countries.	Coffee beans: Promotion of procurement of products compliant with supplier-specific codes of conduct or certified products based on our procurement policy. Cacao beans: Promotion of procurement of products compliant with supplier-specific codes of conduct (sustainable products) based on our procurement policy. Palm oil: Procurement of palm oil based on our procurement policy. Promotion of the disclosure of the set KPI indicators and supplier information. <2030> Coffee beans: Aim for a 50% switch to sustainable coffee beans. Cacao beans: Aim for a 100% switch to sustainable coffee beans. Aim for a 100% switch to sustainable palm oil.	We have decided coffee bean and cacao bean procurement policies. Under these policies, we are promoting efforts to increase sustainability in producing areas. We are purchasing palm oil based on our procurement policy for it. We announce our progress on the rate of certified oil we handle in our palm oil procurement. We perform human rights due diligence on our coffee bean and palm oil supply chains. We announce the results on our website.
General Products & Realty Company
Ensure stable procurement and supply	Using sustainable forest resources	Pulp Woodchips Wood products & materials	We deal in sustainable forest resources to reduce the impact on the environment and prevent the increase of greenhouse gases.	We handle certified or high-level management confirmed materials.	Ensure a 100% handling ratio of certified or high-level management confirmed materials.	We achieved, ahead of schedule, a 100% handling ratio of certified or high-level management confirmed materials that we targeted for 2025.
Ensure stable procurement and supply	Realization of sustainable supply of natural rubber	Natural Rubber	We shall use our best efforts to establish measures to identify any suppliers developing on High Conservation Value (HCV) areas, High Carbon Stock (HCS) areas and peatland, in order to avoid procuring rubber from them.	We will establish a traceability system to make uncertain raw material procurement supply chain tranceparent.	We aim to procure raw materials with traceability and sustainability ensured in natural rubber processing business.	We have developed a traceability system using blockchains. We have been operating this system since the second quarter of FYE 2021.