Initiatives for procuring raw materials

The KADOKAWA Group (KADOKAWA CORPORATION and its domestic subsidiaries; the same applies hereinafter) strives to reduce environmental impact when sourcing raw materials for producing paper-based books, as part of its efforts to contribute to building a sustainable society.

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Raw materials procurement policy

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The Group is dedicated to considering its environmental impact and creating a sustainable supply chain that ensures the stable procurement of raw materials and fair transactions with suppliers.

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●Stable procurement of raw materials while considering environmental impacts

Considering the impact of raw material procurement on society and the environment, the Group procures printing paper produced according to strict standards that take into account sustainable forest management and environmental protection, equivalent to those officially announced by the Japan Paper Association. Additionally, the Group procures raw materials with identical specifications from multiple suppliers for books that require large quantities of materials, such as paperbacks and comics. This approach is part of the Group's business continuity plans (BCP) and helps ensure a stable procurement system.

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●Fair transactions

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The Group complies with domestic and international laws, regulations, and social norms, and conducts fair and transparent transactions. The Group builds trust with suppliers through close collaboration, including regular visits to paper mills and providing advice on environmental considerations, fostering partnerships to establish sustainable operations together.

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Future targets

Based on the policy stated above, the Group has set the following future targets.

●Regular visits to paper mills

The Group will conduct regular visits to suppliers to evaluate their ESG practices and provide them with advice and recommendations.

●Joint development of printing paper

The Group will strive to develop technologies for utilizing environmentally friendly materials and reducing the environmental impact in the production process. Additionally, the Group will jointly develop printing paper.

●Proposals for using environmentally friendly raw materials

The Group will share information with suppliers on paper mills and paper brand specifications, and offer advice and suggestions on selecting brands that have a lower environmental impact.

●Building cooperative relationships to increase the variety of books produced at digital production facility

To optimize the supply of books according to demand, the Group owns digital production facility that can produce small runs for reprints and sudden spikes in demand while maintaining cost efficiency. This method decreases the return rate and reduces excess raw material consumption, addressing key issues facing the publishing industry. To enhance the variety of books produced at the digital production facility, the Group will establish collaborative relationships with a variety of suppliers to source necessary raw materials.

●Traceability of raw materials

The Group manages the printing paper it purchases by brand. In collaboration with suppliers, the Group ensures traceability to the manufacturing plant and paper machine for each brand. The Group will continue to appropriately gather and manage information at each stage of the raw materials procurement process.

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