Recycled paper scandal in Japan

Kwan Weng Kin, Straits Times 18 Jan 08;

Blow to nation's green image as firms admit lying about scrap content of paper goods

IN TOKYO - JAPAN'S image as a global leader in tackling environmental issues has taken a jolt with the disclosure that major Japanese paper makers have lied about the scrap content of their recycled paper products.

The scandal came to light when Japan's postal service discovered that the millions of New Year greeting cards made from recycled paper which it sold last year actually contained less waste paper than claimed by its five suppliers.

This has prompted the head of Nippon Paper Group, the parent company of one of Japan's largest paper makers Nippon Paper Industries, to announce that he would resign once the company has uncovered the scale of the deception.

The company produced 54 per cent of the 'eco-friendly' New Year greeting cards supplied to Japan Post.

Instead of the 40 per cent scrap content stipulated in its contract with Japan Post, Nippon Paper's greeting cards contained only 1 per cent used paper.

Addressing a press conference on Wednesday, Nippon Paper Group president Masatomo Nakamura admitted to the deception, which he said had come about because of the company's emphasis on ensuring quality.

'We cannot deny that we had committed environmental deception. We sincerely accept the fact that we betrayed the trust of the people and we apologise,' he said.

He said that with the present technology, it was not possible to make postcards that are smooth and free of specks using more than 5 per cent of used paper in the production process.

The firm had reportedly also lied about the scrap content of its other paper products, such as notebooks, as far back as 1996.

'We gave precedence to securing product quality by lowering the scrap content. I will take responsibility for ignoring the dishonest practice for many years,' said Mr Nakamura.

The practice of reducing scrap content to ensure the quality of recycled paper products is believed to be rampant in the industry. It reportedly does not mean more profits for paper makers.

Japan's largest paper maker, Oji Paper, which also supplied greeting cards to Japan Post, admitted yesterday that it had also been falsifying the content of recycled paper products.

The latest example of wide-scale corporate deception follows a spate of disclosures about mislabelling of food products last year. The revelations deal a strong blow to Japan's reputation for being fastidious about quality.

In recent years, Japanese manufacturers have put great stress on eco-friendly products and technologies.

The production of recycled paper products was encouraged by a government policy, implemented in April 2001, that required all government agencies to buy eco-friendly products.

The revelation that recycled paper products here are not what they appear to be comes just as Japan is striving to project itself as a leader in tackling global warming, which involves cutting down on carbon dioxide emissions.

This year, in particular, the government is seeking to spearhead international efforts to tackle global warming at the July G-8 Summit, which Japan will host.

Ironically, while the use of recycled paper products will help to save more trees, it does not reduce carbon dioxide emissions.

In fact, last September, Japanese paper companies decided to reduce the amount of waste paper used in their recycled products as an energy-saving measure. They said that making recycled paper entirely from waste paper released more carbon dioxide into the atmosphere than making paper completely from wood chips.

Japanese media criticises companies over fake 'recycled' goods
Yahoo News 19 Jan 08;

Media on Saturday criticised Japan's top paper firms for lying about the use of recycled products in goods billed as being made from such materials, the latest in a series of scandals in the corporate sector.

Five major paper producers admitted in the past week that their products contained significantly less recycled materials than advertised -- or none at all -- in their bid to offer quality products and create a good business image.

"We were utterly stunned by the cases of fake recycled papers, made by the five companies that lead the sector emphasising its environmental friendliness," the influential Nikkei business daily said in an editorial.

"This is a deep-rooted problem that can destroy the public confidence in the industrial sector as a whole," it said.

The paper companies admission came after a media investigation, and all the firms released lists of affected products, ranging from post cards to photo copy paper.

Daio Paper Corp, for example, said it had advertised that a type of computer printer paper was made entirely from recycled materials when only seven percent of it actually was made of such products.

The Mainichi Shimbun said the case was about "corporate ego", rather than going "eco," and that the companies preyed on consumers who wanted to help the environment.

"Our disappointment is not the technological shortcomings. Rather, we are disappointed by the attitude of the companies that felt OK to announce false data," the newspaper said in an editorial.

Prime Minister Yasuo Fukuda also condemned the companies' actions.

"They lied to consumers. Their actions did not really amount to environmental measures, so their problems are two-faceted," Fukuda said Friday.

The scandal comes after a string of cases of deceit by various Japanese firms were revealed last year, including architects who lied about building safety and food producers who mislabelled production dates.