Climate Change Data

Environmental Metrics

ESG Focus Areas

• ESG management
• Corporate Governance

Environmental Achievements

• Acquired ISO 14001 certification for several factories in 2008 and 2016.
• Acquired ISO 22000 certification for several factories between 2012 and 2017.

Social Achievements

• Launched wellbeing initiatives for employees.
• Stable labor relations.

Governance Achievements

• Established a Nomination and Remuneration Advisory Committee in January 2018.
• Implemented a stock-based compensation plan for directors (excluding outside directors and audit committee members) called the Stock Grant Trust (BBT).

Climate Goals & Targets

Environmental Challenges

• Stagnant rice cracker market with intensifying price competition and rising raw material costs.
• Food safety concerns.
• Risk of natural disasters impacting production and operations.
• Succession of manufacturing technology.

Mitigation Strategies

• Investments in quality assurance equipment and multi-variety, small-quantity production lines.
• Strengthening of quality control systems.
• Development of new products using healthy and functional ingredients.
• Continuous employee training and automation to maintain manufacturing skills.
• Close communication with material suppliers for cost reduction.

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• Natural disasters (earthquakes, floods, fires, snow)

Sustainable Products & Innovation

• Development of rice crackers using DHA and other healthy ingredients.

Environmental Metrics

ESG Focus Areas

• Not disclosed

Environmental Achievements

• Reduced waste by eliminating plastic trays in some products.

Social Achievements

• Opened a new store, LACOTE Iwatsuka, in Nagaoka Station to promote local rice and rice cracker culture and create an interactive space for customers.

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Increased costs of raw materials and logistics.
• Intensified price competition in the rice cracker industry.
• Negative impact of consumption tax increase and prolonged deterioration of Japan-Korea relations on the economy.

Mitigation Strategies

• Focusing on quality and implementing the new medium-term management plan 'Pride・BEIKA Plan' to build a foundation for sustainable growth.
• Strengthening differentiation through marketing strategies emphasizing 100% domestic rice usage.
• Improving production efficiency by streamlining production items and reducing logistics costs.
• Reducing waste and environmental impact by eliminating plastic trays in some products.

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: 有限責任大有監査法人 (Ohyu & Co.) - Limited assurance (review)

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Sustainable Products
• Supply Chain Efficiency
• Employee Wellbeing
• Community Investment
• SDGs

Environmental Achievements

• Reduced packaging materials in slim pack products.
• Extended shelf life of products to reduce food waste.

Social Achievements

• Launched a collaboration with local talent, Ms. Maki Nishiyama, for product development.
• Continued support for the “Tomorrow Project” supporting the recovery from the Great East Japan Earthquake (ended in FY2021).
• Opened a new retail store for Niigata Aji-no-Ren Honpo in Nagaoka City.
• Cultivation of a new type of glutinous rice, “Yukimi Rai”, in collaboration with Niigata Prefecture and local JA, contributing to agricultural support.

Governance Achievements

• Integrated Sales, Development, and Marketing departments into a Marketing Department to improve responsiveness to market changes and customer needs.
• Implemented an executive officer system to strengthen management and operational systems.
• Established a compliance risk management committee to ensure prompt and appropriate responses to compliance risks.

Climate Goals & Targets

Environmental Challenges

• Decreased sales due to the prolonged impact of the COVID-19 pandemic and cautious consumer behavior.
• Intensified competition in the rice cracker industry.
• Decline in inbound tourism and souvenir sales.

Mitigation Strategies

• Focused on top 6 brands to improve efficiency and brand recognition.
• Increased production efficiency through concentrated production of main products.
• Cost reduction measures including labor saving, waste elimination, and logistics improvements.
• Strengthened sales by emphasizing the use of 100% domestic rice.
• Construction of a new factory (BEIKA Lab and Nagaoka New Factory) to enhance production efficiency and group synergy.

Supply Chain Management

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

• Slim pack products with reduced packaging materials.