Conscious of risks to sustainable development such as limited resources, environmental issues, and human rights, Kao implements initiatives toward sustainable sourcing of raw materials. As entire supply chain management is important, Kao participates in the supply chain project of the CDP,*1 which seeks to curtail climate change, asking its clients to disclose and curtail greenhouse gas emissions. Kao also cooperates with clients to rationalize logistics and reduce the environmental impact created by its procurements.
Kao recognizes that its business depends on natural capital, and as raw materials derived from natural resources have medium- and long-term limitations, Kao endeavors to convert to alternative resources and continue to procure products with due consideration to critical ethical issues raised by globalization. In 2013, Kao formulated its Guidelines for Sustainable Procurement of Raw Materials.