三菱製紙（3864） – Corporate Report 2021

Corporate Report　2021©WWF ジャパンMitsubishi Paper Mills Ltd.Editorial PolicyTable of Contents　Mitsubishi Paper Mills publishes the Mitsubishi Paper Mills Corporate Report, which summarizes financial and non-financial information to provide stakeholders with an understanding of the Group’ s overall business activities. In these pages, we report on the Mitsubishi Paper Mills Group’s corporate value building activities which seek to bring about a more sustainable society.■ Scope　The companies included are Mitsubishi Paper Mills Limited and its consolidated subsidiaries (18 companies in Japan and 6 companies overseas), as well as its equity-method affiliates (2 companies in Japan and 1 company overseas).■ Reporting Period　The reporting period is fiscal 2021 (April 1, 2020 to March 31, 2021), with some content included from outside this period.■ Guidelines Referenced　ISO26000　GRI’s Sustainability Reporting Standards　Environmental Reporting Guidelines (2018 Edition), Ministry of the Environment■ Contact　Mitsubishi Paper Mills Limited　General Affairs & Corporate Communications Group, General Affairs & Personnel Department　2-10-14 Ryogoku, Sumida-ku, Tokyo 130-0026, Japan　　Phone: +81 3 5600 1487　　Facsimile: +81 3 5600 1489　　E-mail：csr@mpm.co.jp■ Issued　August 31, 2021 (Previous: August 31, 2020)　The Mitsubishi Paper Mills website provides a range of information on subjects that include CSR and the environment, investor relations, products and services, research and development, basic data on the company, and recruitment.■ Next Report　Late August 2022Our Website■ CSR / Environment　Corporate reports, CSR reports　　https://www.mpm.co.jp/eng/env/report-index.html■ Investor Relations　Annual Business Report　　https://www.mpm.co.jp/eng/ir/library/index.html■ Products & Services　　https://www.mpm.co.jp/eng/products/index.html■ Research & Development　　https://www.mpm.co.jp/eng/rd/index.htmlTo Our StakeholdersFair Operating Practices ････････････････ ･････ 33Editorial Policy ･･････････････････････････････1　Ensuring Fair Trade･･･ ･････ ･･････････ ･････ 33Our Website ･･････････････････････ ･･･････ ･･･1　Preventing Corruption ･ ･･･････････ ････････ 33Table of Contents ････････････････････････････　2　Disavowal of Anti-Social Elements ････ ･･････ 33Message from the President ･･･････････････････3Management Policies･････････････････････････5Consolidated Financial and Non-Financial Highlights･･ 7　Special FeatureBusiness Development from a Long-Term Point of View･･ 9 Business Activities of the Mitsubishi Paper Mills GroupOverview of Business Segments ･･････････････ 15　Printing Paper Business････････････････････15　Imaging Media Business ･･･････････････････17 Speciality Materials Business ･･･････････････19Research and Development ･･････････････････21Initiatives Toward SustainabilityInitiatives Toward Sustainability････････ ････ ･ ･ ･23　The Way We See Sustainability ･･･････････ ･ ･23　Sustainabilit Promotion Structure ･･ ･･････････23　ESG/ISO 26000 and Initiative of MPM Group ･･24　Key Issues (Material Issues) Concerning CSR 　　　　Activities ･･････････････････････････････ 25Corporate Governance ･･････････････････････ 26　Basic Policy on Corporate Governance ･･･････ 26　Corporate Governance Framework･･･････････26　Board of Directors and Audit & Supervisory 　　Board Members ････････････････････････27　Outside Directors ･････････････････ ････ ･･･ 28　Assessments of the Board of Directors　 Effectiveness ･･･････････････････ ････ ･･･ 29　Promoting Social Responsibility in the　　Value Chain ･･ ･････････ ･･･ ････････ ･･････ 33　Responsible Raw Material Procurement ･･ ････ 33Relationship with the Environment･･･････ ･････ 35　Environmental Management System ････････ 35　Chemical Substance Management･････ ･････ 35　Preventing Global Warming ･･･････････ ････ 36　Preserving Biodiversity ･･･････････････ ････ 37　Effective Use of Materials ････････････ ････ ･･ 38　Material Balance･･････････････････････････ 39　Environmental Indicators ･･････････････ ･ ･･･ 40Relationship with Employees ････････････ ･ ･･･ 41　Occupational Safety and Health Initiatives ･･･ ･ 41　Promoting Good Mental and Physical Health ･･ 　41　Efforts to Create Comfortable Work 　　Environments･･･････････････････････････42Relationship with Customers ･･･････････ ･ ･ ･ ･･･　43　Quality Control System ････････････ ･･･ ･ ･ ･･　･　43　Product Safety Control System ･････････ ･ ･･ ･･　　43　Communication with Customers ･･････ ･ ･･ ･ ･　･　　44　Encouraging the Worry-Free Use of　　Our Products ･･････････････ ･･･ ･ ･ ･ ･　･ ･　･　　･　　44Relationship with Communities ･･･････････ ･　･ ･　･　　45　Communication with Community Members ････ 45　Philanthropic Expenditures ････････････ ･　･ ･　･　　　46 　　　　　Fiscal 2021 CSR Activities ･････････････ ･ ･　･ ･　･　　　47Fiscal 2022 CSR Action Plan ･･･････････ ･ ･　･ ･　･　　　49　Information Disclosure ･･････････････ ･ ･････ 30Financial Section　　　　　　 51　Compliance････････････････････････ ･ ･････31Company Profile and Corporate Data　　　　　　58　Risk Management ･･････････････････ ･ ･････32　History and Main Offices and Mills of the Mitsubishi 　　Paper Mills Group ･･････････････････････　 591 2“FSCⓇ-Certified Pandaruma,” which was developed through the collaboration among WWF Japan, Ichise C o., Ltd., Shirakawa Daruma Sohonpo, and Mitsubishi Paper Mills Ltd.Message from the PresidentMitsubishi Paper Mills Group Corporate PhilosophyA corporate groupthat lives up to the trustof its customersin the world market Yukihiro TachifujiPresident andChief Executive Officer立藤　幸博A corporate groupthat is alwayson the leading edgeof technologyA corporate groupthat contributesto preservingthe global environmentand creatinga recycling societyAims of the Mitsubishi Paper Mills GroupSince its founding in 1898, Mitsubishi Paper Mills has, as “technological Mitsubishi,” contributed to the development of information media such as printing, publishing, and photography by developing and providing high value-added products.In the information society, we are witnessing a rapid shift to a structure that does not require paper media through digitization. Amidst these drastic changes in the management environment, we entered into a capital and business alliance agreement with Oji Holdings Corporation with the aim of achieving sustainable growth and increasing the corporate value of the Mitsubishi Paper Mills Group and, in March 2019, we became an equity method affiliate of Oji Holdings.Presently, the Mitsubishi Paper Mills Group has upheld and is vigorously engaging in 3 key strategies as part of its New Mid-Term Management Plan (April 2019 to March 2022) whose basic principle is “Strengthening and diversifying the business base for a new stage.”In fiscal 2021, as part of our first key strategy “Establish a robust management base through the alliance with the Oji Group,” we integrated the production systems for carbonless paper and determined the transfer of the pressboard business. As part of our second key strategy “Make structural reforms and enrich existing businesses,” the control of the printing photosensitive material tasks was transferred to a subsidiary and the subsidiaries for the inkjet business were integrated. Finally, as part of our third key strategy “Diversify the business base by fostering new profit pillars,” in addition to the household and consumer paper business and biomass power generation business, which are operated in cooperation with the Oji Group, we set up equipment for manufacturing melt-blown non-woven fabric, determined the addition of wet non-woven fabric papermaking machine to respond to the healthy demand for base materials for water treatment membrane and the production increase for battery separators, manufactured and sold special-purpose release/casting paper, promoted sales of barricote® and barrisherpa®, which contribute to the reduction of plastics and started the sale of water-repellent, oil-proof paperboard. Additionally, while coping with the spread of the novel coronavirus with anti-virus functional filters and alcohol disinfectants, we earnestly engaged in the transformation of our business portfolio and sowed the seeds towards its next pillar, such as films with added functionality for the electronics field and medical-related products.Going forward, we will proceed with strengthening and diversifying our business base, and while aiming to further develop the Mitsubishi Paper Mills Group, we will improve corporate value and contribute to society.We hope for your continued support and encouragement in the future. 　　3 We aim to contribute to society by pursuing the world market, technological capabilities, and the global environment.Contribution to SDGsThrough the trust and empathy of all our stakeholders, the Mitsubishi Paper Mills Group is aiming to increase its corporate value and contribute to the solutions to social issues, and is conducting unique activities for various challenges by utilizing the Group’s business domains and management resources. In recent years, there have been demands to apply the sustainable development goals (SDGs) to management in corporate activities. We were one of the first to produce and sell FSC®-certified paper, which contributes to the attainment of SDGs. Furthermore, we are also marketing packaging paper for a variety of food products as well as paper straws in order to reduce or eliminate plastic usage. Additionally, we established the “Mitsubishi Paper Mills Group Environment Vision 2050” in March 2021 in order to contribute to the realization of a decarbonized or carbon-neutral society. We will continue to make efforts to realize a sustainable society through our businesses.In fiscal 2020, we worked on “Enhancing activities to ensure safety and health” and “Product development centered on harmony with society” as the two top priority issues. For fiscal 2021, considering the Mitsubishi Paper Mills Group’s business environment, conditions and performance evaluation results of the previous fiscal year, we have established “Product development centered on harmony with society,” “Enhancing activities to ensure safety and health” and “Ensuring product quality” as the three top priority issues. “Product development centered on harmony with society” is based on the idea of the SDGs, and aligns with “Diversifying the business base by fostering new profit pillars,” which is one of the key strategies of the current New Mid-Term Management Plan. We will continue to work to develop new products that will pave the way to realizing a sustainable society. At the same time, with a renewed appreciation of the fact that “Enhancing activities to ensure safety and health” and “Ensuring product quality” undergird the Group’s business, we go back to our corporate philosophy and step up our efforts.FSC® C021528 4 Management PoliciesNew Mid-Term Management Plan (FY2020 – FY2022) 　Since April 2019, with “Strengthening and diversifying the business base for a new stage” as our basic principle, we have been taking initiatives under a New Mid-Term Management Plan, which aims to achieve sound and sustainable growth and maximize corporate value over the medium- to long-term. There was a sudden change in the business environment in the second year, that is fiscal 2020, due to the spread of the novel coronavirus, and it significantly impacted our businesses in the printing and communication paper field and the imaging field. In a New Mid-Term Management Plan, the following three key strategies are established:(1) Establish a robust management base through the alliance with the Oji Group;(2) Make structural reforms and enrich existing business; and(3) Diversify the business base by fostering new profit pillars.　We are aiming for a shift away from the conventional business structure based on printing and communication paper and the strengthening and diversification of our business foundation. We believe there is a need to further accelerate this change. Status of initiatives for priority strategies■ Establish a robust management base through the alliance with the Oji Group◇ Centralization of the Carbonless Paper Business　In November 2019, it was agreed to transfer the carbonless paper production and sales business of Oji Imaging Media Co., Ltd. to Mitsubishi Paper Mills, and the business was officially transferred in July 2020 after adjustment of the sales network. We will expand market share and improve profitability through enhanced productivity. We will aim for at least a 35% share of the domestic market going forward.◇ Transfer of the Pressboard Business　In August 2020, we integrated our production systems for electrical insulation paper pressboard in Oji F-Tex Co., Ltd. and determined the transfer of the right of business (excluding the heat insulated pressboard business) to it. By integrating production systems in the Nakatsu factory of Oji F-Tex, which is superior in production capacity, we will increase earnings (scheduled to be implemented in October 2021).◇ Household and Consumer Paper Joint Venture　MPM Oji Home Products Co., Ltd., which engages in the household and consumer paper business, began commercial operation in April 2019. Amid robust demand for household and consumer paper, MPM Oji Home Products is using the Tohoku region where the brand is already established as a foundation to expand into Tokyo and other areas of the Kanto region. In fiscal 2021, we enhanced our product lineup by releasing twice volume toilet paper, kitchen towels, hand towels, an alcohol-free version of anti-bacterial wet wipes in addition to the alcohol-added version.Twice volume toilet paperKitchen towelHand towel(Above: Pillow type)(Below: Box type)Anti-bacterial wet wipes（Alcoholic type）Anti-bacterial wet wipes (Non-alcoholic type)FSC® C021528■ Restructuring and enhancing existing businesses ◇ Merger of Group Companies　 (Reorganization of the Printing Photosensitive Material Business)　In June 2020, Diamic Co., Ltd. (surviving company) and Pictorico Co., Ltd. were integrated and the printing photosensitive material business of Mitsubishi Paper Mills was transferred to Diamic Co., Ltd. Overlapping and common operations will be optimized for the printing photosensitive material business and efforts will be made toward comprehensive business stability based on the maintenance of domestic business and business expansion in the Asian region. In the inkjet business, we will enhance the Pictorico brand, which was cultivated in the high-quality photography paper and photography output business aimed at professionals and advanced amateurs, and mutually cooperate in the fields of proofs, plate making and posters, thus expanding overall sales.◇ Reorganization of the Research and Development Base　In January 2020, we established the Research and Development Division, which oversees all the R&D divisions that had previously been under the umbrella of the business departments, creating an environment in which we can flexibly develop new products, provide technical support, and optimize human resources across all businesses. Under this system, we achieved results by formulating key research themes based on management challenges and by optimizing the allocation of research resources. Additionally, we are also focusing on the creation of future-oriented research themes.　Further, in order to accelerate development and ensure contribution to earnings, we reformed the development implementation system and closed the Tsukuba R&D Laboratory, which was located far away from the manufacturing site, and established the Takasago R&D Laboratory inside the Takasago Mill, which is related to major research themes. We also transferred some of the research themes related to the Kyoto Mill to the Kyoto R&D Laboratory. At the same time, analysis operations, which existed in both Tsukuba and Kyoto, will be integrated into the Kyoto R&D Laboratory and strategically operated as an organization under the direct control of the Research and Development Division. ■ Diversify the business base by fostering new profit pillars◇ Expand in Non-woven Fabric Growth Sectors　At the Takasago Mill, we will install new melt-blown non-woven fabric manufacturing equipment and add more wet non-woven fabric papermaking machines. In the field of speciality materials, we will develop high-performance functional filter materials and aim to expand its business, while taking steps to expand businesses with healthy demand, such as the businesses of water treatment membrane support substrates and battery separators.　We also relocated our filter business base from Yashio City, Saitama Prefecture to the Takasago Mill and transferred our R&D functions to the newly established Takasago R&D Laboratory in the same mill. The Takasago site was established as the base for comprehensive development and production of the Speciality Materials Business, and we continue to expand this business.◇ Environmentally Friendly Products　We are enhancing the lineup of environment-friendly products. In addition to barricote® and barrisherpa®, which are the plasticless packaging papers with high biodegradability and recyclability released in May 2020, we launched water-repellent, oil-proof paperboard with greatly improved water and oil resistance and anti-bacterial kraft paper with anti-bacterial properties. ◇ Special-purpose Release/Casting Paper　At Kitakami HiTec Paper Corporation, manufacturing equipment for special-purpose release/casting paper, which has been remodeled from existing equipment, has begun operation and new businesses other than the photographic base paper business have started. ◇ Electronic Industrial Materials　With the full-scale operation of the new coater at the Kyoto Mill, we are expanding the profitability of functional films, such as photosensitive resists for electronic industrial materials.5 6 Consolidated Financial and Non-Financial HighlightsThe fiscal year runs from April 1 to March 31. Fiscal Year20172018201920202021Profit and loss situation (millions of yen): Net Sales Operating Income Ordinary Income 　 　 　 　 　201,955201,492203,997194,575162,325 　4,313 　1,790 　△40 　1,976 　△1,770 　2,703 　652 　△914 　2,696 　△636 Profit Attributable to Owners of Parent 　1,152 　3,198 　351 　801 　△2,532 Capital Investment 5,995 7,438 12,481 5,524 6,422Cash flow situation (millions of yen): Cash Flows from Operating Activities 　 　 　19,83912,80919,066 　9,976 　13,014 Cash Flows from Investing Activities 　△7,070 　△5,994 　△8,979 　△6,571 　△2,098Financial Position (100 millions of yen): 　Total Assets 　Outstanding Interest-bearing Debt 　　2,349 　　2,374 　　2,328 　　2,122 　　2,094 　　1,257 　　1,193 　　1,046 　　1,019 　　979 　Equity Capital 　　544 　　597 　　664 　　605 　　629（millions of yen）300,000Net Sales（millions of yen）4,313Operating Income201,955201,492203,997194,575162,3251,7901,97620172018201920202021（FY）Outstanding Interest-bearing Debt and D/E RatioEquity Capital & ROEOutstanding Interest-bearing Debt　（100 millions of yen）　2,000Equity Capital（100 millions of yen）D/E Ratio3.0ROE（%）△40△1,77020172018201920202021（FY）6645.6●597629605●1.3●0.62.2●544Per Share Information※1 (yen): Earnings per Share (EPS) 33.72 93.57 10.04 17.96 △56.72 　 Book Value per Share (BPS) 　1,591.00 　1,747.54 　1,485.64 　1,355.27 　1,408.45●2.01,257●2.31,1931,0461,019979 Management Indicators: Operating Income Margin (%) Overseas Sales Ratio (%) Equity Ratio (%) Return on Equity (ROE) (%)※2 Debt-Equity Ratio (D/E Ratio)※3 　 　2.10.9 　△0.0 　1.0 　△1.1 　　30 　　32 　　35 　　33 　　29 　 23.2 　 25.2 　 28.5 　 28.5 　 30.0 　 2.2 　 2.3 　 5.6 　 2.0 　 0.6 　 1.3 　△4.1 　 1.6 　 1.7 　 1.6 EBITDA (millions of yen) 　 14,768 　 12,264 　 10,076 　 11,801 　 7,261Non-financial information： Number of employees※4 (persons) 　3,734 　3,723 　3,668 　3,676 　3,579 Number of intellectual property rights (cases) 　 1,639 　 1,655 　 1,691 　 1,588 　 1,521※6 Industrial Waste Effective Utilization Ratio※5(％) 　 94 　 96 　 96 　 95 Greenhouse Gas Emissions (1,000 tons)　Greenhouse Gas Emissions Emission　Intensity (tons / product tons) 　 1,065 　 1,095 　 1,037 　 958　　　 1.155　　　 1.160　　　 1.155　　　 1.185958971.423 ※1　As of October 1, 2016, we conducted a reverse stock split at a ratio of 1 share for every 10 shares of common stock. The calculation is based on the assumption that the reverse stock split was carried out at the beginning of FY2017.※2　Return on equity (ROE) = Profit attributable to owners of parent/(net assets – non-controlling interest)※3　Debt-to-equity ratio (D / E ratio) = Interest-bearing debt / equity capital※4　The number of employees is working personnel and does not include the number of temporary employees.※5　Effective utilization rate of industrial waste = (amount generated-final disposal amount) / amount generated※6　In the continuous maintenance of intellectual property, we have been intensively taking inventory of patents since 2019. As a result, the number of holdings has decreased.　　　　7 ●1.7●1.6●1.620172018201920202017201820192020Outstanding Interest-bearing Debt●Equity Capital●ROE2021（FY）D/E RatioNumber of intellectual property rightsGreenhouse Gas Emissions and Emissions IntensityEmission IntensityEmissions（tons/product tons）（1,000 tons）1,6391,6551,691※61,5881,521●1.155●1.160●1.155●1.1851,1001,0651,0951,03795820172018201920202021（FY）20172018EmissionsEmission Intensity2019●20202021（FY） 8 7.05.03.01.0-1.0-3.0-5.0-7.0-9.01.5001.2000.9000.6000.3000.000●-4.12021（FY）●1.4238975,0004,0003,0002,0001,0000△1,000△2,000△3,0002.82.62.42.22.01.81.61.47006506005505004504001,4001,3001,2001,000900800250,000200,000150,000100,00050,00001,5001,0005000（cases）2,5002,0001,5001,0005000Special Feature: Business development from a long-term perspective Next-generation products that will transform the business portfolio　In order to shift away from the conventional business structure of printing and communication paper, we are developing businesses from a long-term perspective and aiming to diversify the business base by fostering new profit pillars. In this special feature, we will introduce major next-generation products that will transform our business portfolio in the fields of high-performance products, home and healthcare products, and packaging-related products.Highly functional products■ Battery separator　The battery separator is one of the important components that make up a battery, and it is necessary to ensure ionic conductivity while separating the positive and negative electrodes of the battery. For this reason, it is required to have a porous structure in which fine pores are evenly distributed in the separator, and our ultra-thin non-woven fabric manufacturing technology using fine fibers is utilized there.ChargingcurrentDischargecurrentNegative electrodePositive electrodeLi IonPositive electrodeSeparator Structure of the lithium-ion battery　Among our separator products, the product supply for high-capacity capacitor applications has increased significantly, particularly in Japan, China, and South Korea. Especially, the global spread of COVID-19 has boosted demand for network infrastructure, including that for telecommuting, and has increased demand for renewable energy-related facilities along with the electrification of automobiles. Demand for EDLC and solid capacitors, which use our separators, is also growing, and this trend is expected to continue.　At present, battery separators are produced by one wet non-woven fabric papermaking machine at the Takasago Mill. However, in addition to battery separators, this papermaking machine produces water treatment membrane support substrates such as reverse osmosis membranes (RO membranes), and an insufficiency of production capacity due to increased demand in each business has become an issue.　In order to increase the production output of battery separators, we started to increase the wet non-woven fabric papermaking machine at the Takasago Mill. By specializing in the production of thin wet non-woven fabrics such as battery separators that require more thinness and higher precision, this new manufacturing equipment will improve productivity and stabilize quality in each product group and will be able to respond to future demand growth.■ Dry Film Resist　The development of information and communication technologies, such as 5G and IoT, and the accompanying evolution of display devices as well as the trend toward electrification and automation in the automobile industry are expected to lead to an increase in the number and functionality of various electronic devices. In such an environment, in order to improve the functionality of component materials, it is necessary to develop processes with a high degree of manufacturing difficulty, such as miniaturization, complexity, and thinning of components, along with high heat dissipation and high heat resistance required for automotive components, as well as resist materials used in such processes.　Our photosensitive resist film is suitable for manufacturing and processing applications of high-performance materials such as special grades specialized for microblasting (fine sandblasting) applications and highly chemical resistant grades suitable for difficult-to-etch metals and glass processing applications. We will continue to promote product development and sales expansion that meet the needs of our customers.Photo of capacitor disassembly (the yellow sheet is a separator.)Examples of products that include capacitors (such as servers)(This image is unrelated to the actual projects in which our products were adopted.)9 Dry film resist roll■ Special-purpose Release/Casting Paper　We have started the production of special-purpose release/casting paper for industrial materials by utilizing quality control, advanced technology and production equipment cultivated during the production of photographic base paper.　We have developed base paper for synthetic leather as release/casting paper, utilizing technology and equipment to achieve high levels of flatness and a uniform surface quality required in photographic base paper. 　In addition, the Mitsubishi Paper Mills Group is proactively promoting the launch of new product groups by remodeling existing equipment to produce release/casting paper, utilizing the laminating technology along with technology and equipment that can achieve a fine coated layer. 10 Special Feature: Business development from a long-term perspective Home and Healthcare Products■ Melt blow dry non-woven fabric, non-woven fabric mask　We have newly established a manufacturing facility for non-woven fabric masks and melt blow dry non-woven fabrics, which are the materials for them, at the Takasago Mill. This project has been adopted by the Ministry of Economy, Trade and Industry as a “domestic investment promotion project cost subsidy project for supply chain measures”. The non-woven fabric mask manufacturing equipment began commercial operation in January 2021, and the melt-blow dry non-woven fabric manufacturing equipment began commercial operation in June 2021.■ Air filter (anti-virus functional filter, total heat exchange element)　Mitsubishi Paper Mills produces and sells air filters with diverse functions, such as deodorizing, dust collecting, anti-bacterial, anti-viral, anti-allergen, humidifying (transpiration) and total heat exchanging properties. Since the coronavirus outbreak, especially, sales of filters with anti-virus functionality and energy recovery ventilator cores have increased.Antiviral functional filter　With widespread awareness of the importance of air purification and ventilation to create safe and comfortable spaces, global demand for air purifiers and total enthalpy heat exchangers has grown significantly over the past year. This trend is likely to continue. In order to meet such global demand, we are required to enhance the lineup of antiviral functional filters and total heat exchange elements, and to achieve both energy saving and safety / comfort through more vigorous new product development. We will contribute to the realization of a safe and comfortable space for the post-corona society.Melt-blown equipment　The melt-blown dry non-woven fabric is a dry non-woven fabric with intertwined fine fibers that combine high collection efficiency and low-pressure loss and is a key material that gives non-woven masks high collectivity for fine contaminants such as viruses and pollen.　We believe that the establishment of a new melt blow dry non-woven fabric manufacturing facility is an important measure that will provide a foothold for our company, which has focused on wet non-woven fabrics, to enter the dry non-woven fabric field. We will start by supplying melt-blown dry non-woven fabrics for masks, but by combining them with our wet non-woven fabric technology, we will increase added value and expand into the fields of liquid and gas filters and new applications other than filters. 　As for mask manufacturing equipment, we started operation of melt-blown dry non-woven fabric manufacturing equipment, and in January 2021, we launched a high-performance non-woven fabric mask while procuring raw materials and manufacturing the products all in Japan. The “Mitsubishi Paper Mills Rakuten Ichiba Store” was newly opened in March 2021, making it available to individual customers. Furthermore, we are developing highly functional non-woven fabric masks using functional filter materials, such as “Allersweep®,” which has been developed in the air filter field, with the effect of controlling harmful substances through plant-based components.High-performance non-woven fabric mask11Enthalpy exchanger corePaper element (right) and polymer element (left) 12Special Feature: Business development from a long-term perspectivePackaging-related Products■ Coated paper for packaging with barrier properties and heat seal suitability　　barricote®・barrisherpa®®Paper + plasticfilmcombinationContributes to plasticreductionBiodegradability®Mono materialFull recyclingBiodegradableHigh barrierHeat seal　barrisherpa® is a laminated hybrid product of barricote® and plastic film. While maintaining the heat sealability and strength of plastic film, it contributes to reducing the amount of plastic use, and can also be combined with plant-derived, biodegradable plastic film. For the logo design, we created a design based on the concept of a tree growing in the sunlight.　 “barricote®” is an alternative material that can contribute to the reduction of waste plastics, as measures against marine plastic waste and global warming are strongly desired due to the consumption of plastics for containers and packaging, which is rapidly increasing worldwide.Main features●Sustainable wrapping coated paper that responds to the realization of a carbon-neutral society and the reduction of 　　marine plastic waste.●A mono material product that has the original excellent biodegradability and full recyclability of paper materials.●It has excellent barrier function and heat sealing properties, and covers a wide range of needs in the flexible packaging 　market.●FSC®-certified bleached kraft paper is used as the base material.●Developed at a domestic factory for the domestic market based on the usage record of the EU market where paper 　　packaging is ahead.●A lineup of optimal grades and thicknesses for various packaging formats for primary/secondary packaging, including 　food and daily hygiene products.Water-based coating layerFeatures for primary packaging・Water vapor/Oxygen/Food oils and fats/Flavor barrier property・Heat seal suitability/Compliance with the Food Sanitation ActPaper base materialFeatures for secondary packaging・Heat seal suitability (no barrier property)Main features　　●A brand that combines barricote® and plastic film to meet high quality requirements.●Contributes to the reduction of plastic while using the minimum amount of plastic film with excellent strength, water　　resistance and heat seal suitability.●Achieves excellent barrier function without impairing total biodegradability by combining with biodegradable plastic.●Bio-PBS/PBSA (manufactured by Mitsubishi Chemical Corporation) can be used as bio- and biodegradable plastics.Various plastic packaging materialsPlastic laminateWater-based coating layerPaper base materialDisintegration test (up to 10 weeks)barricote®barricote®barricote®100)%( noitisopmoced fo eergeD80604020Barrier performance/Seal strengthPhotostarting pointFor primary packagingAluminum foilAluminum or inorganic vapor deposited filmFor primary packaging J-HS-WGOMFor secondary packaging J-HS-Ggood0.1110100)mta/yad/2m/cc( negyxO13　　　　　　For secondary packagingBarrier plastic film (EVOH, etc.)1,000Paper Non-barrier plastic filmNylonPEPP1Water vapor (g/m2/day)10.0)mm 51/N( htgnerts laes taeH8.06.04.02.010,0001,000100100.190100110120※The values shown are measured by us and are not guaranteed values.good0.080※The values shown are measured by us and are not guaranteed values.Temperature（℃）FSC® C021528Test conditions: Compost/Culture soil = 50/50, Temperature 60°CTest cooperation: Mitsubishi Chemical Corporation0024681012Elapsed time (weeks) 14Trends in operating income of the paperand pulp business（Million yen）2,0221,1409820192021201720182020 （FY）Overview of Business SegmentsPrinting Paper BusinessBusiness Results　In the domestic market, although the product price level was maintained, the demand declined significantly mainly in the first half due to the impact of the Corona disaster, and both the sales volume and the amount decreased. Regarding exports, both sales volume and amount decreased. Under these circumstances, we have continued to reduce production in order to tighten supply and demand, and have been working to establish a production system in anticipation of future declines in demand.　As for our European subsidiaries, the supply-demand relationship for each main product deteriorated due to COVID-19, and sales revenue decreased following a decline in sales volume, lower prices, and impact of exchange rates.　As a result, net sales for all paper and pulp businesses was ¥125,340 million, down 14.4 ％ year over year. Operating income decreased ¥2,440 million from ¥1,140 million in the previous fiscal year to a loss of ¥1,299 million. Although there were effects of lower raw material and fuel prices and cost reductions, they were not enough to offset the negative impact of the decrease in production and sales volume.2,5002,0001,5001,0005000△500△1,000△1,500Business Strategies　Under the three key strategies of the “New Mid-Term Management Plan” (April 2019 to March 2022), which is now in its second year, we are working to “strengthening and diversifying the business base for a new stage.”(1) Establish a robust management base through the alliance with the Oji Group　We are promoting shared inter-regional OEM with the Oji Group and reducing logistics expenses, including mutual use of warehouses and distribution. Also, we are implementing shared OEM in printing and communication paper, joint storage at warehouses in consumption areas, and transportation of products by Oji Logistics dedicated ships.(2) Make structural reforms and enrich existing business　We will optimize the production system according to demand trends, organize production brands and optimize inventories, and maintain prices.(3) Diversify the business base by fostering new profit pillars　We are working to shift its product portfolio by expanding sales of bleached kraft paper and functional paperboard, and expanding the lineup of barrier coated paper, which contributes to the elimination of plastics.Business Topics《Launch of water-repellent and oil-resistant paperboard》　As we are transforming our product portfolio, we have launched water- and oil-resistant paperboard as a new product in the packaging field, which will increase the product ratio in the future.　This paperboard has a special aqueous coating that gives it the ability to withstand take-away containers without plastic film, which used to be laminated with plastic film. This material has begun to be used in various take-away containers as a material that can contribute to the reduction of plastic.15 Product introduction■ Printing Paper■ Communication PaperUsed for catalogs, books, copy paper, copy slips, etc.Used for copy paper, copy slips, receipts, etc.△1,427△1,299■ Household and Consumer Paper■ Heat-resistant PressboardIt has a reputation as a household paper with a high-class texture.Used as an insulator for transformers.■ barricote® and barrisherpa®■ Bleached Kraft PaperBarrier paper that can contribute to reducing the amount ofplastic usedUsed for paper bags, shopping bags, etc. 16Overview of Business SegmentsImaging Media BusinessBusiness Results　Demand for photographic photosensitive materials and inkjet paper, mainly for image output, was sluggish in both domestic and overseas markets due to the effects of refraining from traveling and events due to the Corona disaster, and the sales amount decreased.　As a result, total net sales for the Imaging Media Business were ¥25,182 million, a 25.1% decrease year-over-year. Operating loss increased ¥1,798 million from ¥330 million in the previous fiscal year to ¥2,128 million. Negative factors such as a decline in sales volume and higher costs due to lower utilization rates of production facilities were significant, which were not offset by efforts to expand new inkjet paper products for business use, sales of alcohol sterilizing solution and other infection prevention products, and reduction of fixed costs.5000△500△1,000△1,500△2,000△2,500（Million yen）1,000948Imaging Media BusinessOperating Income537449201720182019（FY）20202021△330Business Strategies　The Imaging Media Business is working on the following initiatives as strategies under the New Mid-Term Management Plan.　As a restructuring of the existing business, the business of the print sensitive material business was transferred to the subsidiary Diamic Co., Ltd., and in the inkjet business, Diamic Co., Ltd. and Pictorico Co., Ltd. were merged in order to improve business efficiency and strengthen the sales system.　While strengthening our business foundation by reorganizing our production system in Japan and overseas and improving the efficiency of our sales system, we will aggressively expand into overseas markets to enhance sales of existing products that are maturing. We are expanding new products for inkjet paper, and we are working to expand sales by launching antibacterial and antiviral inkjet paper.　In printing-related products, we will work to expand our business to the Asian region, where corrugated board and package printing are growing rapidly, centered on chemical-free thermal plate-making films, and secure the profitability of our existing businesses.　In new businesses, the Kyoto Mill’s No. 10 coater is now in full operation, and we are working to expand the profitability of functional films for the electronics field, such as photosensitive resists for electronic industrial materials, and to develop and launch new products. Kitakami HiTec Paper Corporation commenced the commercial operation of a new facility for the manufacture of special-purpose release/casting paper and other products, which was converted from existing facilities, and a new business other than photographic base paper was launched. We are also making efforts to cultivate new customers for digital transfer inkjet paper in various textile fields ranging from fast fashion which is suited to inkjet printing. In the medical and healthcare fields, we will develop new products and expand sales, and take other measures to expand our business in growing fields and establish various new businesses.Business Topics《Bank Paper Takasago Premium exclusive for fountain pens launched》　The “Three Diamond” watermarked bank paper made for bank books in 1960 is used by many fountain pen enthusiasts because of its writing characteristics. 　In response to the demand for the ultimate fountain pen characteristics, we have developed and launched “Bank Paper Takasago Premium” for fountain pen paper, based on users’ feedback. You can enjoy the silky touch and the wonderful color and shade expression of the ink. 　We were also interviewed by the staff of Shumi No Bungu Bako, a high-end stationery magazine, and were featured in the January 2021 issue, vol.56.17 Product introduction■ Inkjet paper related●Antibacterial and antiviral inkjet paper●Highly weatherproof inkjet synthetic paper●Inkjet paper for sublimation transfer■ Photography related・Mitsubishi Grace Color Paper MG-1000 ・Color paper processing chemicals△2,128Antibacterial and antiviral inkjet paper■ Printing related■ Resin coat base paper related●CTF (Computer to Film)・T-GAF completely chemical-free thermal-sensitive film ●CTP (Computer to Plate) printing plate systems ・Thermal DigiPlates (TDP) Completely chemical-free thermal ●Resin coat base paper・For photographic paper・For inkjet paper・For sublimation 　thermal transfer　paperT-GAF● Speciality paper・Processing base　paper (release/casting paper) ・Stacked board (Sheet pallet/ partition)Partition printing plate・Silver DigiPlates (SDP) Liquid-saving processor system ● CTP printing plates for newspaper printing・PD-News RECTA Ver.2 Completely chemical-free●Digital screen mask make systems・MDS-360 (Mitsubishi on Demand Silkscreen) Emulsion application, no washing required MDS-360■ New Businesses●Electronic industrial materials・Photosensitive resists・Resin etching system・Silver nanoparticle ink● Medical/healthcare・Diamour, a cryopreservation device for 　fertilized eggs・Pureleaf (sterilization solution) ・My Dome, a cover that warms,   　　　　moisturizes, and provides restful sleep●Digital signage・SaiVis (projection screen films)● Textile digital printing・Digital transfer inkjet paperPureleaf（Sterilization liquid）Glass art created using photosensitive resistPollenDustMy Dome Digital transfer inkjet paper 18（Million yen）Speciality Materials Business Operating IncomeProduct introduction■ Battery separator■ Water Treatment Membrane Support 　 Substrate(Photo: Element with built-in support substrate) 20172018201920202021（FY）It has high heat resistance and contributes to improving the safety of batteries.■ Enthalpy exchanger core　 (Polymer type: developed product)It is used as a support for water treatment membranes and contributes to the supply of safe water.■ Thermal Rewrite CardsRewriteOverview of Business SegmentsSpeciality Materials BusinessBusiness Results　In the area of speciality materials, sales revenue increased as the decrease in sales volume of rewritable media and non-woven fabrics for construction materials was offset by the increase in sales of water treatment membrane support substrates, battery separators and air filters.　The sales amount of chemical paper decreased due to the large impact of corona damage on construction purposes, etc., and the quantity of mainstay decorative board base paper and backing paper for wallpaper fell.　As a result, total net sales for the Speciality Materials Business decreased 6.4% year-over-year to ¥15,144 million. Operating income increased by ¥553 million year-over-year to ¥1,506 million thanks to the effect of cost reduction and lower raw material and fuel prices as well as sales increase in water treatment membrane support substrates, battery separators, etc.2,0001,8001,6001,4001,2001,00080060040020001,506970952953653Business Strategies　In the Speciality Materials Business, we continue to focus on increasing new users for water treatment membrane support substrates and expanding sales of membrane bioreactor (MBR) membrane support substrates, battery separators, decorative laminate base paper, and tape base paper.　For water treatment membrane supports, we are expanding our sales channels by capturing increasing demand in Asia and Europe, mainly in China. Demand for battery separators for capacitors, condensers and lithium-ion batteries is increasing, and we plan to start commercial operation of a new non-woven fabric manufacturing facility in April 2022.　As for air filters, the demand for air purification and ventilation is increasing due to the corona virus, and sales for air purifiers and total heat exchange ventilation fans are increasing. Regarding total heat exchange, in addition to expanding the current product lineup of paper devices, we are developing polymer devices, which are the mainstream in Europe and the United States and show signs of growing demand in China, with the aim of expanding sales channels globally.　In chemical paper, we are developing products and cultivating markets with the aim of creating high value-added products that match market requirements. We aim to expand sales of new products such as tape base paper, for which demand is growing in Japan and overseas, Heat & Fire Resistant Bio-soluble Ceramic Fiber Sheet, and carbon nanotube dispersions.　In addition to the above, we are aiming to strengthen our business foundation and expand our business portfolio by continuously expanding into new fields, such as by introducing production equipment for non-woven fabric masks and melt blow dry non-woven fabrics that are the materials for them at the Takasago Mill.Business Topics《Super heat-resistant glass fiber non-woven fabric》　We have developed a super heat-resistant glass fiber non-woven fabric with non-flammability and heat resistance that could not be realized with conventional wet non-woven fabrics. It can withstand the conditions of 750 ° C for 20 minutes in a heating furnace, and will not be punctured by a flame of 1000 ° C. Consideration is being given to using it for building materials that can obtain non-combustible certification by itself and for non-combustible sheets that prevent the spread of fire when a lithium-ion battery for electric vehicles (EV) ignites.19It has excellent total heat exchange efficiency, gas barrier properties, condensation resistance, and water resistance.It is a resource-saving and economical information recording mediumthat can be reused by repeatedly rewriting the display.■ Sterilized paper■ Paper strawsWe use FSC®-certified paper, which is friendly to the environment and local communities.Base paper for sterilization packaging that ensures the safety of medical devices.FSC® C021528 20Research and Development　In line with our “Mitsubishi Paper Mills for High Grade and Information Media” philosophy, Mitsubishi Paper Mills develops and manufactures products in a wide variety of fields that include not only printing and communication paper but also imaging-related materials and speciality materials. At each of our R&D laboratories, along with researching our existing field of paper and peripheral basic technologies, we are combining the paper technologies we have developed over the years with silver halide photosensitive material technologies developed in our photo and printing fields to develop advanced products for our digital society. We are also mobilizing technical capabilities honed through the development of photosensitive materials, special materials, and other materials to develop new speciality materials (electronic industrial materials and amenities fields).　In January 2020, we established a new Research and Development Division to consolidate our research departments, and are working to enrich existing businesses and diversify the business base by fostering new profit pillars. In fiscal 2021, we reorganized our R&D laboratories to further streamline development.　Building a sustainable society is the most important goal for the papermaking industry, whose business base relies on an abundance of forest resources. Combining concern for the environment and dedication to enriching cultural life is the starting point of all our product development efforts.（ million yen）Research and Development ExpensesOrganization of Research and Development Division Intellectual Property Department1,200Product Development DepartmentResearch and Development DivisionTakasago R&D LaboratoryKyoto R&D LaboratoryAnalysis Group1,1001,000900800Intellectual Property　 Intellectual property is an important asset in developing our business and reinforcing our competitiveness. We submit applications for patents, utility models, and designs in Japan and overseas, not only to protect existing products, but also to raise our competitiveness in new fields. In particular, we are submitting more applications overseas in areas such as the U.S., Europe, China, South Korea, and Taiwan to back up our cultivation of new markets. We have also been actively applying for trademarks to improve brand power in our products.20172018201920202021（FY）As of March 31, 2021Domestic OverseasPatent　　　　 505　　　　 289Utility model right　　　 18　　　　　 34Design　　　　 　 7　　　　　 6Trademark　　　　 105　　　　 77Number of rights heldBases for Product and Technology DevelopmentProduct Development Department　 The Product Development Department is responsible for the development of paper products, which are our mainstay products. In particular, in response to the recent marine plastic issues and other demands for products that contribute to the reduction of plastic in containers and packaging, we are developing distinctive packaging and industrial paper using the papermaking and coating technologies we have cultivated in printing and communication paper. We have commercialized “barricote®,” a barrier paper with excellent oxygen and water vapor barrier properties, “water-repellent, oil-proof paperboard” with superior water and oil resistance compared to conventional paperboard, and “anti-bacterial kraft paper” with antibacterial properties.　 We will continue to develop unique paper products in the future. StaphylococcusaureusEscherichia coli(E. coli)21 Viable bacteria status after 24 hours of incubationGeneral bleached kraft paperAnti-bacterial kraft paperEvaluation results of the antibacterial properties of anti-bacterial kraft paperTakasago R&D Laboratory　Takasago R&D Laboratory, inaugurated on June 21, 2021, is developing speciality materials such as support substrates for various separation membranes, separators for secondary batteries and capacitors, paper products as substitutes for plastic containers and packaging, and nonflammable boards and sheets, based on the manufacturing technologies for non-woven fabrics and paper that we have developed over the years. 　We plan to establish an integrated development system, including labs and actual devices.Kyoto R&D Laboratory　Using core technologies consisting of the Group’ s extensive photosensitive resin, inkjet media, and silver halide photography technologies, this laboratory is developing and commercializing a range of products including various resist films, which enjoy unique properties in the electronics industry; micro-structure fabrication systems, which involve wet processing of difficult-to-process insulating materials to support 5G; and antibacterial inkjet media and a variety of sterilization solutions to meet the needs amid the COVID-19 pandemic.　In the new field of medical and health care, we are also working on the development of new device systems for cryopreservation of fertilized embryos for fertility treatment.Analysis Group　In order to develop new products and improve the quality of existing products, it is essential to have advanced analytical technologies to support them.　The Analysis Group of the Research & Development Division, which was established in April 2021 as a result of organizational restructuring within the Research & Development Division, assists the entire Mitsubishi Paper Mills Group in its research and development and product quality improvement efforts by quickly responding to the constantly evolving analytical technologies of the world.Takasago R&D LaboratoryCryopreservation device system for embryo (enclosed type)Gas chromatograph time-of-flight mass spectrometerCoating Flow Analysis Business　 MPM CAE Center Co., Ltd. (established in April 2011) conducts contracted research and provides consulting services using numerical analysis techniques. It provides services that meet users’ needs through the use of coupled analysis techniques and high-speed analysis systems. 　 With its high level of technical expertise, the company has long been engaged in scientifically analyzing coatings (specifically, application of liquid to base substrates), and has created numerical analysis (computer simulation) technology for optimizing them. Leveraging this technology, we ran droplet prevention simulations on the collapsible desktop partitions and ventilation simulations of indoor air conditioners as a countermeasure to COVID-19.22Initiatives Toward SustainabilityThe Way We See Sustainability　The Mitsubishi Paper Mills Group aims to enhance its corporate value by earning the trust and appreciation of all stakeholders, while contributing to the realization of a sustainable society by providing solutions to various social issues. To this end, we have positioned CSR activities as one of the important management issues to be addressed in our business.　We established the Code of Conduct of the Mitsubishi Paper Mills Group as a materialization of this philosophy. Since then, we have respected the spirit of the code and dedicated ourselves to putting it into practice.⇨ Reference link: Code of Conduct of the Mitsubishi Paper Mills Group　 https://www.mpm.co.jp/eng/company/kensyou.htmlOrganizational GovernanceTimely and appropriate information disclosureStakeholdersHuman RightsLabor PracticesThe EnvironmentFair Operating PracticesConsumer IssuesCommunity Involvementand Development・Communication with our customers・Sharing of environmental data with　suppliers and customers・Holding explanatory meetings for　　investors・Enhancement of internal　communications・Dialogue with the local community・Issuing integrated reports, etc.・Provision of information via the　InternetCustomersSuppliersShareholdersEmployeesAdministration organsLocal CommunitiesNGOs/NPOsSustainability Promotion Structure　To contribute to the realization of a sustainable society and carry out the business of the Mitsubishi Paper Mills Group with an emphasis on CSR, we have nominated a CSR director and have established a CSR Committee, which is chaired by the president. The CSR Committee oversees all nine areas of the Group’ s CSR activities (compliance, risk management, safety and health, the environment, product safety, product quality, human rights and labor, information, and social contribution).Product QualityTechnology andEnvironment DepartmentDirector in chargeProduct SafetyProduct Liability (PL) CommitteeEnvironmentEnvironmental Conservation CommitteeSupervising office:Technology and EnvironmentalDepartmentCSR DirectorCSR CommitteeSupervising office: General Affairs & CorporateCommunications GroupPresidentSocial ContributionInformationHuman Rights and LaborResponsible department:Technology and EnvironmentalDepartmentSupervising office:Technology and EnvironmentalDepartmentResponsible department:General Affairs and PersonnelDepartmentResponsible department:General Affairs and PersonnelDepartmentResponsible department:General Affairs and PersonnelDepartment General Affairs & Personnel DepartmentDirector in chargeGeneral Affairs &Personnel DepartmentDirector in chargeInternal ControlResponsible department: General Affairs & PersonnelDepartmentInternal Audit DepartmentDirector in chargeSafety & HealthCompany-wide Safety and Health CommitteeSupervising office: General Affairs and PersonnelDepartmentRisk ManagementRisk Management CommitteeSupervising office: General Affairs and PersonnelDepartmentComplianceCompliance CommitteeSupervising office: Legal DepartmentAsset ProtectionResponsible department:General Affairs and PersonnelDepartmentBusiness Effectiveness and EfficiencyOperating AuditsResponsible department:Supervising office: General AffairsInternal Audit Department& Personnel DepartmentReliability of Financial ReportingResponsible department:Internal Audit Department23ESG/ISO 26000 and Initiatives of MPM Group　The Mitsubishi Paper Mills Group views ISO 26000, an international standard for organizational social responsibility, as a common indicator for promoting sustainability and promotes activities in each field. In this corporate report, we note the following as activities being done for the “seven core subjects” and “issues” of ISO 26000.ESGCore subjectsIssuesPage mentionedGOrganizational Governance Organizational GovernanceHuman RightsLabor PracticesFair Operating SPracticeConsumer IssuesCommunity Involvement and DevelopmentThe EEnvironment1. Due diligence2. Human rights risk situations3. Avoidance of complicity4. Resolving grievances5. Discrimination and vulnerable groups6. Civil and political rights7. Economic, social, and cultural rights8. Fundamental principles and rights at work1. Employment and employment relationships 2. Conditions of work and social protection3. Social dialogue 4. Health and safety at work5. Human development and training in the workplace1. Preventing corruption2. Responsible political involvement3. Fair competition4. Promoting social responsibility in the value chain 　　5. Respect for property rights　1. Fair marketing, factual and unbiased information, 　　 　 and fair contractual practices2. Protecting consumers’ health and safety 3. Sustainable consumption4. Consumer service, support, and complaint and 　　　 dispute resolution 5. Consumer data protection and privacy6. Access to essential services7. Education and awareness1. Community involvement2. Education and culture3. Employment creation and skills development 4. Technology development and access5. Wealth and income creation6. Health7. Social investment1. Prevention of pollution2. Sustainable resource use3. Climate change mitigation and adaptation 4. Protection of the environment, biodiversity, and restoration of natural habitatsInitiatives Toward Sustainability　　Corporate Governance　　　　　　　Pgs. 23-25Pgs. 26-32Compliance　　　　　　　　　　　　　Risk Management　　　　　　　　　　Pg. 31Pg. 32Promoting Social Responsibility inthe Value Chain　　　　　　　　　　　Pg. 33Responsible Raw Material ProcurementRelationship with Employees　　　　　Relationship with Communities　　　　Pgs. 33-34Pgs. 41-42Pgs. 45-46Compliance　　　　　　　　　　　　　Risk Management　　　　　　　　　　Relationship with Employees　　　　　Pg. 31Pg. 32Pgs. 41-42Compliance　　　　　　　　　　　　Fair Operating Practices　　　　　　　Pg. 31Pgs. 33-34Special Feature Information Disclosure　　　　　　　　Fair Operating Practices　　　　　　　Relationship with the Env