In the renewable energy business that RENOVA operates, we place great importance on the local community as well as the global environment. In our biomass power generation business, we will give due consideration to the preservation of the natural environment and build a business that contributes to the mitigation of climate change. Furthermore, we are focusing on improving the sustainability of our overall business from diverse perspectives, including coexistence with local communities, creation of new value through our business, and creation of new supply chains. To this end, we consider the understanding, collaboration, and cooperation of our suppliers*, our partners in biomass fuel procurement, to be indispensable.

This Procurement Policy clearly states RENOVA’s stance on biomass fuel procurement, including its priorities and considerations. In implementing this policy, we expect suppliers* to strive for sustainable fuel supply in accordance with this policy.
*Suppliers in the broadest sense, including local businesses, trading companies, etc.

1. Procurement Standards for Sustainable Biomass Fuels

   • (1) Compliance with laws and social norms

     We will comply with all applicable laws and regulations, international laws and regulations, and social norms in the countries in which business activities take place.

   • (2) Third-party certification

     To ensure the sustainability of biomass fuel procurement, we will promote the handling of fuels that have acquired internationally reliable third-party certification. We will also promote collaboration with trading partners to obtain certification.

   • (3) Environmental Considerations

     • Consideration for the natural environment

       • Preservation of High Conservation Value Forests and Nature

         We will not convert or use High Conservation Value (HCV) forests, High Carbon Stock (HCS) areas, or peat swamp forests.

       • Sustainable Land Use

         In accordance with sustainable forest management principles, we will promote procurement from areas where water resources are conserved, soil fertility is maintained through appropriate soil management and measures are taken to prevent soil degradation, and forest carbon stocks are sustainably maintained. We will also promote the procurement of raw materials in accordance with the principle of cascade use, depending on the situation in the procurement area.

       • Conservation of ecosystems and biodiversity

         We will give consideration to the impact on ecosystems and biodiversity unique to each region.

     • Climate change mitigation

       • Calculate and reduction efforts to for GHG emissions

         We will collect appropriate data to calculate life cycle GHGs throughout our supply chain and strive to permanently reduce life cycle GHGs through efficient use of energy and resources, utilization of renewable energy, etc.

   • (4) Social Considerations

     Consideration for local communities

     • Engagement with local communities

       When undertaking new projects, we will give due consideration to the legal and customary rights of local communities (including indigenous peoples and land/resource owners), and start with free, prior and informed consent (FPIC: Free, Prior and Informed Consent) through dialogue with the relevant parties or their representatives.

     • Contribution to sustainable development of the region

       We will strive to contribute to the sustainable development of local communities and economies by proactively providing employment and educational support to local communities.

   • (5) Management System

     • Traceability and Monitoring

       We will establish a mechanism and system to ensure supply chain transparency and traceability of procured materials. Based on this system, we will verify the following items in writing or through on-site inspections in accordance with RENOVA’s procurement policy.

       a) Compliance with laws and regulations and third-party certification
       b) Consideration for the natural environment
       c) Climate change mitigation
       d) Consideration for society and local communities

2. Supplier Engagement

   RENOVA will proactively take the actions listed below to ensure the implementation of this procurement policy by ensuring traceability. By implementing these actions, we will avoid inconsistencies with the policy and strive to maintain and improve sustainability throughout our procurement activities. In the unlikely event that a clear violation of the policy is found, we will ask the supplier in question to correct the situation and provide guidance and support for improvement.

   • Supply Chain Assessment and Monitoring

     When selecting suppliers and continuing business with them, we will consider the environmental and social impact of their business activities, and regularly assess their compliance with our biomass procurement policy.

   • Dialogue with and support for suppliers

     Through dialogue with suppliers, we will ascertain the status of their efforts regarding environmental and social impacts and provide ongoing support for improvement.

3. Action Goals

   • Thoroughly inform new suppliers of this procurement policy.

   • We will calculate life cycle GHGs for all procured fuels and disclose them on a regular basis.

   • We will strive for highly transparent disclosure of information regarding the status of compliance with this procurement policy and the results of its monitoring.