Action Policy on Biodiversity

Kao aspires to create a Kirei life for all, where people and the planet can enjoy a cleaner, more beautiful, and healthier life. To this end, we always strive to minimize our dependence and impact on nature and biodiversity, while responsibly maximizing the benefit they provide.

Our business activities benefit from biodiversity such as natural resources and the water it produces, in all cycles of our products including the procurement of raw materials, production, distribution, sales, use, and disposal. Meanwhile, Kao is impacting biodiversity in a variety of ways, such as through use of plant-derived fats and oils, water used for production and wastewater discharge, disposal and incineration of packaging materials. We are deeply aware of the importance of halting and reversing biodiversity loss and achieving full recovery of nature.

Kao is committed to working together with our customers, business partners, and society to conserve and restore biodiversity, and to take actions that lead to the regeneration of nature.

1. We identify the relationship between business and biodiversity throughout the value chain.

Action policy

Understand the dependence/impact of business activities on biodiversity in all cycles of our products and services, including raw material procurement, production, distribution, sales, use, disposal, and recycling. This will be done through appropriate assessment methods that take into consideration the ecosystems, local communities, and various stakeholders.

  • The impact of business activities on biodiversity should be determined using methods that conform to international information disclosure frameworks and target-setting methods.

2. We minimize the impact of business on biodiversity.

Action policy

Materiality is assessed based on the magnitude of the impact of the activity on biodiversity and the urgency to conserve, restore, and regenerate biodiversity associated with the activity.

  • Specific targets and timelines will be set for identified material issues to minimize dependence on and impact on biodiversity, and activities to achieve these targets will be undertaken.
  • For the procurement of palm oil, paper, pulp, and other products, the company will establish guidelines*1 , support zero deforestation and NDPE*2 at the origin, and conserve biodiversity, high conservation value (HCV) forests, high carbon storage (HCS) forests, and peat swamps.

3. Develop and implement unique technologies to wisely utilize the bounty of biodiversity.

Action policy

In order to make careful use of the limited resources on the earth, we minimize the use of raw materials and aim for zero waste. In addition, Kao promotes the development and utilization of raw materials that have less impact on biodiversity, such as algae biomass, and will develop its own proprietary technologies or introduce new ones.

  • Develop and implement technologies that enable the conversion of fossil-fuel resources to sustainable biological resources.
  • Develop and implement technologies to improve the quality and yield of plant-derived fats and oils, together with advanced utilization technologies.
  • Develop and implement high-performance technologies and green manufacturing processes that reduce the use of raw materials.
  • Study natural ecosystems, including algae and microorganisms, to develop and implement sustainable materials, efficient production of materials, and search for alternative raw materials using inedible and waste biomass.
  • Recognizing the importance of water resources, develop and implement technologies to reduce water use in the manufacture and product use, while also introducing technologies to minimize the impact of wastewater on local ecosystems.

4. Comply with international agreements.

Action policy

We will comply with the Convention on Biological Diversity, the international agreements on biodiversity issued by the Conference of the Parties to the Convention on Biological Diversity and other bodies, and relevant national laws.
We will actively participate in activities to conserve and restore biodiversity and promote the regeneration of nature.

  • When using genetic resources, ABS*3 trends should be given due consideration.
  • The Cartagena Protocol on the Use of Genetically Modified Organisms shall be respected and appropriate use and management of genetically modified organisms shall be conducted.
  • * 3 ABS
    Access to genetic resources and the fair and equitable sharing of benefits arising from their utilization.

5. Conduct business activities without damaging the local ecosystem.

Action policy

  • We will conduct our business activities with respect for local communities. We will support forests, rivers, wetlands, and oceans’ ecosystems that sustain local livelihoods, lifestyles and culture.
  • In each business site, we will conduct biodiversity assessments, and implement activities to mitigate and improve our impact.
  • In addition to compliance with regulations, we will promote voluntary activities that take biodiversity into consideration.
  • We will respect the rights of the people living in each community, preserve and restore the local ecosystem, and work to lead the regeneration of nature.

6. We will maximize the effectiveness of collaboration by raising awareness and sharing knowledge on biodiversity among internal and external stakeholders.

Action policy

We will raise the understanding and awareness of biodiversity among all employees and promote knowledge sharing among divisions through participation in activities to conserve local ecosystems, including green spaces at business sites.

  • We will introduce specific training on biodiversity within our employee education programs, and raise awareness of biodiversity among all employees through e-learning, study sessions at each business unit, and other means.
  • We will provide opportunities for all employees to contribute to biodiversity by, for example, encouraging participation in biodiversity conservation and restoration activities organized by local governments, NGOs/NPOs, and other external organizations.
  • We will participate in multistakeholder initiatives related to biodiversity and engage in dialogue with other organizations including companies, NGOs and external stakeholders to keep abreast of the latest trends, improve our own activities, and disseminate our findings internally and externally.

7. We will take actions to conserve and restore biodiversity and regenerate nature in cooperation with external stakeholders.

Action policy

We will work with various stakeholders, including consumers and business partners, to take actions to avoid, reduce, conserve, restore and regenerate, guided by the mitigation hierarchy to address direct causes of biodiversity loss including land use, climate change, pollution, and other causes.

  • We will promote activities to conserve biodiversity in and around our business locations in collaboration with our employees, consumers, business partners, and society.
  • We will disclose progress with all stakeholders with full transparency and in accordance with international frameworks.

8. We will aim for a harmonious coexistence of people, nature and chemicals.

Action policy

We will assess the impact of chemicals on nature and biodiversity based on the latest scientific findings. We will explore how chemistry can be used to address both biodiversity and climate change issues.

  • We will contribute to the reduction of our own and the world's use of chemicals by providing products and solutions that utilize our proprietary technologies, minimize the risk of contamination and adverse effects caused by chemical substances, and reduce waste.
  • The goal is to maximize value to consumers and nature by increasing or using nature's abundance without waste, with the help of chemicals that have less environmental impact and are more sustainable.
  • We will continue to inform consumers about the progress, in the pursue of safe and sustainable ways of using chemical substances.

October 3, 2023
David J. Muenz
Director, Managing Executive Officer
Senior Vice President of the ESG Global

Basic Policy on Biodiversity

Basic Policy on Biodiversity

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