Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance
• Health

Environmental Achievements

• Reduced CO2 emissions by 2.7% compared to FY2019 intensities
• Achieved zero emissions at all Group factories
• Switched packaging material for KENKO Restaurant taste Mayonnaise (500g) to film using biomass ink
• Waste recycling rate of over 90%
• Reduction of processing losses by 8%

Social Achievements

• Launched Noseru Dake (simply add) series, receiving the 52nd Food Industrial Technical Award
• Donated products to various organizations, including Kid’s Cafeterias and local NPOs
• Implemented online training programs during COVID-19 pandemic
• Enhanced childcare leave system and employment follow-up
• Food education activities at Saitama Kid’s Cafeteria Network

Governance Achievements

• Transitioned to the Tokyo Stock Exchange Prime Market
• Established a Sustainability Policy
• Established a Compliance Committee and an Ethics Committee
• Implemented media training (simulated press conference training)
• Established a whistleblowing hotline

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impact on sales of mainstay products
• Soaring raw material prices (soybeans, rape-seed, cooking oil)
• Rising resource and commodity prices
• Food loss and waste
• Labor shortages

Mitigation Strategies

• Implemented price revisions for products
• Developed small-volume products for take-out demand and home meals
• Developed new Salad Creamy Dressing “full-ness®”
• Developed upcycled products
• Implemented automation of work processes using robots

Supply Chain Management

Responsible Procurement

• Sustainable sourcing of raw materials
• Cooperation with contract farmers
• Support for sustainable agriculture

Climate-Related Risks & Opportunities

Physical Risks

• Natural disasters (e.g., earthquakes)

Transition Risks

• Fluctuations in raw material prices
• Climate change impacts on agriculture

Opportunities

• Development of energy-efficient products
• Development of upcycled products

Reporting Standards

Frameworks Used: International Integrated Reporting Council (IIRC) Framework, Guidance for Collaborative Value Creation of the Ministry of Economy, Trade and Industry

Certifications: FSSC22000 (all factories)

UN Sustainable Development Goals

• SDG 2: Zero Hunger
• SDG 12: Responsible Consumption and Production
• SDG 13: Climate Action

Initiatives related to food loss and waste reduction, sustainable sourcing, CO2 emission reduction, and use of sustainable packaging materials.

Sustainable Products & Innovation

• Noseru Dake series
• Plant-based foods
• Upcycled products
• Products using biomass ink packaging

Awards & Recognition

• 52nd Food Industrial Technical Award (Noseru Dake series)
• 22nd Food Safety and Environmental Contribution Award (Nishi-Nihon Factory)
• 1st Food Industry Mottainai Award (Nishi-Nihon Factory)

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance
• Health

Environmental Achievements

• Reduced CO2 emissions by 1500 tons at Nishi-Kobe Factory and 139 tons at Gotenba Factory through green refrigerant equipment upgrades.
• Reduced plastic consumption by 4.6 tons and CO2 emissions by 22.6 tons by using thinner films for pouches.
• Implemented various waste reduction initiatives, including converting potato peels into liquefied feed and eggshells into fertilizer/feed, and composting vegetable scraps.

Social Achievements

• Donated products to local charities and organizations, including Kid’s Cafeterias and food banks.
• Expanded egg sourcing to multiple countries to ensure steady procurement.
• Implemented new personnel systems to encourage employee challenges and growth, including a new remuneration system and simplified organizational structure.
• Conducted various training programs for employee development, including career planning training for women and young employees and English language education.

Governance Achievements

• Enhanced investor relations through more frequent corporate briefings and one-on-one meetings, and increased information disclosure on the corporate website.
• Improved information security through spear phishing simulations, asset management software, and network reconfiguration.
• Introduced a new grade system, remuneration system, and performance evaluation system.

Climate Goals & Targets

Environmental Challenges

• Higher operation costs due to potential carbon taxes.
• Additional costs from stricter energy-saving policies.
• Higher compliance costs from tighter regulations for food waste disposal.
• Higher raw materials costs due to introduction of bioplastics and other green materials.
• Higher electricity costs from using a higher proportion of renewable energy sources.
• Rising fossil-fuel energy prices.
• Lower yields due to extreme weather events.
• Supply chain disruptions or damage from extreme weather events.

Mitigation Strategies

• Reduce manufacturing costs by utilizing resources more efficiently.
• Employ low-carbon energy sources.
• Leverage new technologies.
• Extend best-before dates to reduce food loss and waste.
• Use thinner packaging materials.
• Employ environmentally friendly packaging and other materials.
• Develop plant-based food products.
• Communicate information on climate change initiatives.
• Diversify sourcing locations.
• Work more closely with raw materials suppliers.
• Formulate a business continuity plan for climate disasters.

Supply Chain Management

Responsible Procurement

• Visiting farms in person to ensure safe and reliable sourcing of agricultural products
• Expanding egg sourcing to multiple countries to ensure steady procurement
• Working closely with suppliers through assessments and site visits

Climate-Related Risks & Opportunities

Physical Risks

• Droughts
• More extreme weather events (e.g., typhoons, torrential rains, landslides, and high tides)

Transition Risks

• Carbon pricing (carbon taxes)
• Stricter energy-saving policies
• Changes in energy costs
• Changes in raw materials costs (agricultural and animal products)
• Changes in customer behavior

Opportunities

• Reduce manufacturing costs by utilizing resources more efficiently
• Employ low-carbon energy sources
• Extend best-before date (to reduce food loss and waste)
• Use thinner packaging materials
• Employ environmentally friendly packaging and other materials
• Develop plant-based food products

Reporting Standards

Frameworks Used: GRI, SASB, TCFD

Certifications: FSSC 22000, JFS-B, ISO 17025

UN Sustainable Development Goals

• SDG 12 (Responsible Consumption and Production)

Addressing food loss and waste through effective utilization of raw materials and donation of products.

Sustainable Products & Innovation

• Egg-Like Salad (plant-based)
• WABI-DELI series (Japanese side-dish brand)