Wood Procurement Policy

Purpose and Background

JK Holdings Group considers global environmental issues to be one of its most important management priorities in order to fulfill its corporate philosophy of "Creating a Comfortable & Rich Living Environment" And since the JK Holdings Group deal plywood and other wooden building materials as its main products, we believe that we can contribute to the reduction of greenhouse gases and the preservation of biodiversity by building a recycling-oriented society that utilizes forest resources such as wood and wooden building materials. In order to protect natural forests and continue sustainable wood procurement, the Group has established the following as its Basic Policy for Procuring Wood and Wooden products, and will work step by step to implement the policy.

Scope

This basic policy applies to wood, wooden building materials, and wooden boards procured by JK Holdings Group of companies. This basic policy does not apply to products derived from construction waste.

Basic Policy

JK Holdings Group will strive to procure products based on the following policies in order to put our corporate philosophy into practice.

• We promote the procurement of products that have been certified for legality and sustainability, including environmental and social aspects, for the conservation of sustainable forests.
• We avoid procurement of wood that leads to destruction of forests with high conservation value.
• We promote procurement in compliance with relevant laws and regulations.

Code of Conduct（Implementation and Operation）

• We will promote the procurement of woods that have been certified for legality and sustainability, including environmental and social aspects, positively utilizing the forest certification system, and ensuring traceability for the conservation of sustainable forests.
• We will implement the system step by step according to the characteristics of each country and region, periodically review its implementation status, and promote continuous improvement.
• We will cooperate with business partners, experts, government agencies, and other stakeholders to promote initiatives.
• We regularly monitor the implementation of this policy.

This basic policy and code of conduct will be disseminated to all related business partners.