Climate Change Data

Environmental Metrics

ESG Focus Areas

• Governance

Governance Achievements

• Transitioned to an Audit Committee Company on March 22, 2016.
• Appointed 2 independent outside directors out of 6 total directors.
• Established an internal audit department.
• Developed an anti-social forces exclusion policy and procedures.

Climate Goals & Targets

Environmental Challenges

• Implementing electronic voting and English translation of meeting notices.
• Improving the effectiveness of the board of directors.
• Providing training for directors and executive officers on corporate governance and business ethics.
• Enhancing information disclosure to shareholders and investors.

Mitigation Strategies

• Future plans to implement electronic voting and English translation of meeting notices.
• Future plans to evaluate and improve the board's effectiveness.
• Future plans to conduct training for directors and executive officers.
• Future plans to enhance information disclosure through shareholder meetings and website updates.

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Not disclosed

Environmental Achievements

• Not disclosed

Social Achievements

• Certified as a Health Management Excellent Company 2021 (Large-scale Corporation Division)

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic significantly impacted sales to the food service industry, particularly in the first half of the year. Significant decrease in sales of citrus fruits. Weather conditions negatively impacted domestic produce, leading to increased demand for imported produce.

Mitigation Strategies

• Shifted focus to takeout and delivery services. Developed new product lines and frozen sushi for hotel chains. Improved supply chain efficiency, invested in IT infrastructure, and promoted the development of private brand (PB) products. Reconsidered product composition.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Health Management Excellent Company 2021 (Large-scale Corporation Division)

Environmental Metrics

ESG Focus Areas

• Employee well-being
• Supply chain efficiency
• Product development
• Post-merger integration
• Business growth

Social Achievements

• Accredited as a “2021 Health and Productivity Company (large-scaled corporation division)”

Governance Achievements

• Focus on improving the productivity of existing businesses, reinforcing profitability and creating next-generation businesses in new fields

Climate Goals & Targets

Environmental Challenges

• Restriction on worldwide economic activities due to the COVID-19 pandemic
• Lower consumer spending due to uncertain future economic environment
• Decreased sales to the restaurant industry due to lockdowns
• Decreased demand for citrus fruits due to lockdowns and lower selling prices
• Post-merger integration challenges with acquired companies in different countries

Mitigation Strategies

• Reviewed product structure and took other measures in line with clients shifting to takeout and delivery
• Developed new product lines for Japanese foods, frozen sushi, and other products for hotel chains
• Developed products to meet the needs of local markets to exploit new channels
• Focus on improving the productivity of existing businesses, reinforcing profitability and creating next-generation businesses in new fields
• Observing, measuring, and adapting governance policies to enable well-researched decision-making and support business growth

Supply Chain Management

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

• Shirakiku brand products

Awards & Recognition

• 2021 Health and Productivity Company

Environmental Metrics

Climate Goals & Targets

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Not disclosed

Environmental Achievements

• Not disclosed

Social Achievements

• Not disclosed

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Soaring sea freight rates caused by logistics turmoil, rising logistics-related costs such as labor costs, and potentially lost business opportunities due to global container shortage and associated shipping delays and shortages. If a new variant of COVID-19 spreads and the COVID-19 regulations on business are implemented, consumer sentiment may decline again.

Mitigation Strategies

• Raised product prices at an early stage in preparation for rising sea freight rates due to sudden changes in the supply-demand balance and rising labor costs for warehouses/drivers due to the tight labor market in North America. Kept SG&A expenses down. Focus on improving efficiency and profitability.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Climate Goals & Targets

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Continual improvement in food safety
• Made group-wide efforts to strengthen food safety and distribute products in accordance with the regulations of each importing country

Social Achievements

• Received the Excellent Health Management Corporation Certificate (Large Corporation Category) in 2023 for the third consecutive year
• Made donations equivalent to approximately 120 million yen to food banks in the three years from 2020 to 2022
• Launched MOGUFULL, a food-specific hometown tax payment business, to deliver excellent local food products and ingredients to customers across Japan and expand sales channels for Japanese food.

Governance Achievements

• Strengthen governance and compliance
• Strengthen corporate governance
• Ensure compliance
• Enhance risk management and information management
• Continuous improvement of food compliance system

Climate Goals & Targets

Environmental Challenges

• Increasing product costs
• Escalating inflation
• Rising energy costs
• Difficult business environment caused by the weak yen
• Shrinking Japanese food market

Mitigation Strategies

• Appropriate and timely price adjustments
• Streamlining supply chain management
• Aggressive M&A
• Creating business solutions that utilize new technologies, including digital and food tech
• Cultivating overseas production and sales of Japanese fruits and vegetables
• Launching MOGUFULL to provide local producers and business operators with new sales networks and markets

Supply Chain Management

Climate-Related Risks & Opportunities

Awards & Recognition

• Excellent Health Management Corporation Certificate (Large Corporation Category) in 2023

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Not disclosed

Social Achievements

• Certified as a Healthy Company for three consecutive years (2023)
• Donated approximately 120 million yen worth of food to food banks over three years (2020-2022)

Governance Achievements

• Strengthened corporate governance and compliance
• Improved risk management and information management

Climate Goals & Targets

Environmental Challenges

• Responding to varying food regulations across different regions
• Maintaining profitability amidst rising commodity prices, inflation, and energy costs

Mitigation Strategies

• Continuous improvement in the ability to adapt to food regulations in different regions
• Implementing timely and appropriate price adjustments

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Consideration of human rights issues, CSR procurement

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Climate Change
• Biodiversity
• Circular Economy
• Food Safety
• Diversity & Inclusion
• Supply Chain Management
• Corporate Governance
• Health & Wellbeing

Environmental Achievements

• Not disclosed

Social Achievements

• Health management certified for three consecutive years
• Donation to food banks (approximately ¥120 million over three years)

Governance Achievements

• TCFD response
• Strengthened food safety

Climate Goals & Targets

Environmental Challenges

• Fluctuations in procurement conditions due to exchange rate fluctuations, inflation, and climate change
• Intensification of procurement competition due to global consumption expansion
• Polarization of demand for high-value-added and low-priced products
• Regional differences in food regulations

Mitigation Strategies

• Diversification of procurement sources to avoid regional concentration
• Joint bidding to reduce freight costs
• Development of a traceability system to manage quality and prevent counterfeiting
• Continuous improvement of food safety and compliance systems

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: TCFD

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• 2023 Japan Packaging Contest award for Japanese sweet potato packaging