Climate Change Data

Environmental Metrics

ESG Focus Areas

• Health
• Environment
• Innovation
• People

Environmental Achievements

• Reduced steel can weight by 37% compared to 10 years prior.
• Deployed energy-saving vending machines with 80% less power consumption than 2000 models.
• Deployed "Frontier Vendors" extending vending machine lifespan to 15 years, reducing environmental impact and costs.
• Introduced hybrid vehicles reducing operational environmental impact.

Social Achievements

• Launched "Calorie Limit for the Mature Aged" tea series in collaboration with FANCL.
• Developed home shopping channel for supplements and health foods, achieving full-year profitability in 2018.
• Established DyDo Group Health Declaration and implemented measures to improve employee well-being.
• Implemented Group Code of Conduct and held study groups for employee awareness.

Governance Achievements

• Established Group ESG Committee.
• Established Advisory Board to advise the president on new business ventures.
• Improved Board of Directors effectiveness through self-evaluation and discussions.

Climate Goals & Targets

Environmental Challenges

• Declining vending machine numbers due to labor shortages.
• Declining sales per vending machine due to increased competition.
• Impact of climate change on supply chain and operations.
• Need to establish a second major revenue source beyond beverages.

Mitigation Strategies

• Investing in IoT technology to streamline vending machine operations.
• Developing health-oriented products for retail channels.
• Expanding into the healthcare sector through M&A and orphan drug business.
• Strengthening export operations to mitigate risks associated with the Turkish lira.

Supply Chain Management

Responsible Procurement

• Outsourcing production to partner plants nationwide to ensure business continuity and reduce logistics costs.
• Strict quality control and evaluation systems for partner production plants.

Climate-Related Risks & Opportunities

Physical Risks

• Natural disasters (earthquakes, typhoons, heavy rains)
• Loss of water resources due to climate change

Transition Risks

• Strengthening laws and regulations regarding energy use and global warming.

Opportunities

• Expanded demand for eco-friendly products and energy conservation technologies.

Sustainable Products & Innovation

• Lighter steel cans
• Energy-saving vending machines
• Pouch-packaged products

Environmental Metrics

ESG Focus Areas

• Sustainable Society
• Human Resources
• Corporate Governance

Social Achievements

• Initiatives for a Sustainable Society

Governance Achievements

• Improved Corporate Governance

Climate Goals & Targets

Environmental Challenges

• Changes in the social environment due to the COVID-19 pandemic

Mitigation Strategies

• Accelerated efforts to achieve sustainable growth and respond to societal changes

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Health
• Environment
• Innovation
• People
• SDGs

Environmental Achievements

• Reduced weight of steel cans by 37.4% compared to 10 years ago
• Reduced annual fuel consumption of route trucks per vending machine by 32%
• Reduced annual power consumption of new vending machines by 40.5%
• Increased average service life of vending machines to 10.9 years
• Achieved 86.8% voluntary empty container recycling rate

Social Achievements

• Launched canned coffee products in collaboration with TV anime Demon Slayer
• Introduced a second job system for employees
• Introduced KAO-NE, a facial recognition payment service for vending machines
• Installed disposable diaper vending machines in collaboration with SECOM and Daio Paper

Governance Achievements

• Established Group Risk Management Committee and Group ESG Committee
• Appointed new directors with expertise in pharmaceuticals industry
• Improved the effectiveness of the Board of Directors

Climate Goals & Targets

Environmental Challenges

• Shrinking vending machine market due to competition from convenience stores and drugstores
• Labor shortages in vending machine operations
• Depreciation of the Turkish lira impacting raw material costs
• Negative cash flows during investment in orphan drug business
• Risks associated with international business expansion

Mitigation Strategies

• Strengthening sales activities to secure new vending machine locations
• Implementing smart operation structure to improve efficiency
• Strengthening exports to mitigate risks from lira depreciation
• Appointing outside directors with pharmaceutical expertise
• Establishing an International Business Management Department to manage and supervise overseas subsidiaries

Supply Chain Management

Responsible Procurement

• Strict selection of fruit sources for Tarami jellies
• Collaboration with partner production plants for beverage production

Climate-Related Risks & Opportunities

Physical Risks

• Unseasonable weather
• Extremely high temperatures
• Natural disasters

Transition Risks

• Tightened environmental regulations
• Increased costs to cope with tightened regulations

Opportunities

• Development of energy-efficient products
• Reducing environmental impact through smart operations

UN Sustainable Development Goals

• Goal 3: Good Health and Well-being
• Goal 12: Responsible Consumption and Production
• Goal 13: Climate Action

DyDo's initiatives contribute to these goals through health-focused products, resource efficiency, and environmental protection measures.

Sustainable Products & Innovation

• Love the Earth series beverages in aluminum cans
• Calorie Limit for the Mature Aged tea series

Environmental Metrics

ESG Focus Areas

• Human Resources
• Vending Machine Business Reform
• Sustainable Society Initiatives
• Environmental Sustainability
• SDGs

Environmental Achievements

• Launched the "Everyone Love the Earth Project" to raise environmental awareness and promote recycling.
• Set priority environmental targets: 100% empty container collection by 2030, 60% sustainable plastic containers by 2030, continuous reduction of container use.
• Achieved 86.8% empty container collection rate.
• Reduced average annual power consumption of vending machines by 27.8% compared to 2015.
• Deployed Frontier Vendors to extend vending machine lifespan and reduce resource waste.
• Reduced weight of steel cans by 37.4% compared to ten years ago.
• Reduced fuel consumption of route trucks per vending machine by 40.5%.

Social Achievements

• Introduced a second job system for employees and began accepting second job workers.
• Implemented company-wide telework program to improve productivity and work-life balance.
• Established the DyDo Group Health Declaration to strengthen health management.
• Granted certification under the Ministry of Economy, Trade and Industry’s Health & Productivity Management Outstanding Organizations Recognition Program.
• Launched KAO-NE, a facial recognition payment service for vending machines.
• Installed vending machines selling disposable diapers to support parents.
• Developed vending machines selling masks and hygiene products in response to COVID-19.

Governance Achievements

• Established the DyDo Challenge Award to recognize employee contributions to corporate value.
• DyDo Group SDGs Declaration to emphasize contribution to a sustainable society.
• Internal activities to encourage employee understanding and action on SDGs.

Climate Goals & Targets

Environmental Challenges

• Shortage of skilled human resources.
• Decreasing population and shortage of operations staff in the vending machine business.
• Market saturation in the vending machine business.
• Need to reduce environmental impact of vending machine operations and products.
• Need to improve efficiency of empty container collection.

Mitigation Strategies

• Active recruitment of diverse human resources.
• Implementation of new workstyles based on telework and mobile work.
• Establishment of smart operations in the vending machine business to reduce workloads and improve productivity.
• Reinforcement of sales system to better understand customer needs.
• Promotion of solution-focused sales in the vending machine business.
• Development of energy-saving vending machines.
• Use of hybrid vehicles.
• Development of trucks with increased capacity for empty containers.
• Promotion of partnerships to improve empty container collection.

Supply Chain Management

Responsible Procurement

• Collaboration with suppliers and partners who share the company's vision for a sustainable society.

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

• Love the Earth series beverages in aluminum cans shaped like bottles.
• KAO-NE facial recognition payment service.

Awards & Recognition

• Certification under the Ministry of Economy, Trade and Industry’s Health & Productivity Management Outstanding Organizations Recognition Program.