Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate Change
• ESG
• Cybersecurity
• Geopolitical Risks
• Sustainability

Environmental Achievements

• Published greenhouse gas (GHG) reduction targets aligned with the Paris Agreement, aiming to reduce Scope 1 and 2 emissions by 50% and Scope 3 emissions by 30% by 2030 (compared to 2015), and striving for carbon neutrality by 2050.
• Endorsed the Task Force on Climate-related Financial Disclosures (TCFD) recommendations.
• Joined the TCFD Consortium and Climate Change Initiative.

Social Achievements

• Continued focus on strengthening the integration of ERM and Smart Risk program into corporate culture through training and awareness courses.
• Maintained risk and opportunity visibility through monthly ELT dialogue and senior manager participation in risk identification and review sessions.
• Implemented a robust crisis management program with business continuity plans, including annual review and crisis training for leadership teams.

Governance Achievements

• Established a new Sustainability Committee comprised of ELT members to discuss and formulate sustainability strategies, with final decisions approved by the Board of Directors.
• Implemented an Enterprise Risk Management (ERM) framework based on COSO and ISO 31000.
• Annual audit of the business resilience program by the Internal Audit team and external auditors.

Climate Goals & Targets

Environmental Challenges

• Commodity pricing fluctuations (exchange rates, raw material shortages, commodity prices)
• Volatile macroeconomic conditions (global events, inflation, currency fluctuations)
• Cybersecurity and system availability risks (system failures, cyber incidents)
• Changing consumer mindset (sugar consumption, health awareness)
• Human resource challenges (attraction, retention, labor union relations)
• Natural disasters (earthquakes, floods)
• Evolving commercial and competitive landscape
• Financial risks (funding costs, retirement benefit obligations)
• Increased stakeholder concerns over plastics use and regulations
• Product-related quality and food safety incidents
• Regulatory compliance and ethical conduct violations
• Supply chain disruptions (production, logistics, weather, consumer behavior)
• Climate change (raw material shortages, adverse weather)
• Franchise relationship risks (contract terms, concentrate pricing, promotional support)

Mitigation Strategies

• Use of derivative transactions to mitigate exchange rate and price fluctuations
• Collective purchasing of raw materials
• Improved macroeconomic landscape prediction and preparation
• Strong crisis response practices
• Backup sites overseas
• Proactive threat identification and cyberattack simulations
• Compliance with information management laws and regulations
• Internal information security regulations and employee training
• Product innovation and portfolio expansion (low/no-calorie beverages)
• Consumer engagement programs
• New salary payment structure
• Diverse talent recruitment and people development
• Improved workplace environment
• Enhanced communication between management and employees
• Strong Business Continuity Plan (BCP) and crisis response capabilities
• Crisis and disaster response training and simulations
• Increased transportation capacity
• Earthquake coverage
• Enhanced regional response capabilities
• Product portfolio enhancement and accelerated productivity
• Operational excellence initiatives
• Expansion of online channels
• Business integration strategies
• Improved cash flow management
• Pension Governance Committee
• Sustainable society initiatives (recycled PET, lightweight packaging, PET bottle collection)
• Compliance with environmental and social reporting requirements
• Enhanced quality control and reporting system
• Supplier quality audits and certifications
• Employee awareness of quality control
• Robust identification and response programs for quality/food safety issues
• Sustainable procurement
• Stakeholder engagement
• Alternative supplier sourcing
• Improved supplier selection and management
• Shifting to alternative raw materials
• Crisis response and business continuity planning
• Risk engineering and insurance coverage
• Mental health surveys
• Maintaining cooperative relationships with The Coca-Cola Company and Coca-Cola Japan
• Improved TM rights utilization and product development

Supply Chain Management

Responsible Procurement

• Sustainable procurement
• Collaboration with suppliers (e.g., development of agricultural methods)

Climate-Related Risks & Opportunities

Physical Risks

• Decrease in manufacturing efficiency due to extreme weather
• Business shutdown due to extreme weather
• Supply risk due to extreme weather
• Increased asset deterioration and energy costs due to extreme weather

Transition Risks

• Cost increase due to carbon pricing
• Cost increase due to energy conservation regulations
• Cost increase due to tighter plastics regulations
• Cost increase due to water use regulations
• Decline in sales due to inadequate response to customer behavior changes
• Loss of reputation due to inadequate response

Opportunities

• Customer demand increase for energy-efficient products
• Changing customer preferences due to global warming
• Cost and GHG emissions reduction through efficient use of renewables

Reporting Standards

Frameworks Used: TCFD

Sustainable Products & Innovation

• Environmentally friendly products (e.g., 100% recycled PET bottle, labelless, reusable, package-less)
• Heat stroke prevention and healthy beverages

Environmental Metrics

ESG Focus Areas

• Packaging and recycling (circular economy)
• Mitigation of and adaptation to climate change
• Water stewardship
• Sustainable conservation of biological resources
• Healthy products/services
• Contribution to local community development
• Employee development & wellbeing
• Diversity, equity and inclusion
• Product quality and safety
• Resilience to natural disasters
• Corporate governance
• Sustainable supply chain
• Responsible commercial practices

Environmental Achievements

• Water replenishment rate of 411% in 2023
• Introduced 100% recycled PET bottles for 38 products across four brands
• Reduced water usage by 20% from 2015 levels
• Introduced carbon offset vending machines
• Expanded CAN to CAN initiative to use 100% recycled aluminum for can bodies and caps

Social Achievements

• Launched a new people strategy to enhance people, culture, and organization
• Increased ratio of female managers to 7.4%
• Increased rate of male employees using childcare leave to 83.3%
• Donated 35,443 cases (911,140 bottles) of Coca-Cola products to 26 organizations
• Participated in various community projects

Governance Achievements

• Established the Audit and Supervisory Committee
• Implemented a corporate executive officer system
• Established the Ethics & Compliance Reporting Hotline

Climate Goals & Targets

Environmental Challenges

• Rising commodity and energy costs
• Fluctuations in exchange rates
• Climate change impacts (physical and transition risks)
• Securing and retaining human resources
• Changing consumer preferences
• Natural disasters
• Evolving commercial and competitor landscape
• Sustainability reporting requirements

Mitigation Strategies

• Implemented price revisions
• Streamlined supply chain
• Improved S&OP process
• Implemented various cost-saving measures
• Developed new products and services
• Strengthened business continuity plans
• Enhanced risk management framework
• Proactive ESG initiatives and reporting

Supply Chain Management

Supplier Audits: 100% adherence to Supplier Guiding Principles

Responsible Procurement

• Supplier Guiding Principles
• Sustainable sourcing
• Joint procurement initiatives

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather conditions
• Water scarcity

Transition Risks

• Carbon pricing
• GHG emission regulations
• Plastics regulations

Opportunities

• Increased demand for sustainable products
• Cost and GHG emissions reduction through renewable energy

Reporting Standards

Frameworks Used: International Integrated Reporting Framework, GRI Sustainability Reporting Standards, TCFD

Certifications: ISO 9001, FSSC 22000, ISO 14001, ISO 45001

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Goal 6 (Clean Water and Sanitation)
• Goal 7 (Affordable and Clean Energy)
• Goal 12 (Responsible Consumption and Production)
• Goal 13 (Climate Action)
• Goal 8 (Decent Work and Economic Growth)
• Goal 11 (Sustainable Cities and Communities)
• Goal 17 (Partnerships for the Goals)

Various initiatives contribute to these goals as detailed in the report.

Sustainable Products & Innovation

• I Lohas natural mineral water (100% recycled PET bottles, label-less)
• Coca-Cola (100% recycled PET bottles)
• Products using recycled aluminum

Awards & Recognition

• CDP A List rating for water security
• White 500 Health & Productivity Management Outstanding Organization
• Tokyo Metropolitan Government Women's Participation Awards