Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance
• Sustainable Development Goals (SDGs)

Environmental Achievements

• Developed a new, recyclable, eco-friendly beverage carton that does not use aluminum foil and can be distributed at room temperature.
• Reduced the weight of PET containers for green tea beverages.
• Effective use of approximately 49,000 tons per year of used tea leaves.
• Achieved a food recycling rate of 90% or more every year.

Social Achievements

• Tea-Producing Region Development Project revitalizes regions by generating employment and stabilizes the management of producers.
• Launched Oi Ocha Koicha (strong-tasting green tea) and the Catechin – Green Tea Series (green tea containing catechin), a product approved as a Food for Specified Health Uses (FOSHU).
• Oi Ocha New Haiku Contest, attracting a cumulative total of around 29.87 million entries.
• ITO EN was ranked 18th (highest position among Japanese companies) on the list of 50 companies that are “Changing the World” in a feature of Fortune business magazine.

Governance Achievements

• Introduced ISO 26000, an international standard, and developed a CSR system.
• Incorporated SDGs into its management, reflecting them into the CSR Charter and Basic CSR Promotion Policy, priority management issues, and value chain issue identification.

Climate Goals & Targets

Environmental Challenges

• High population aging rate in Japan (40% expected to be 65 years or older by 2060).
• Low food self-sufficiency rate in Japan (39%).
• Required CO2 reduction of 26% in Japan by 2030.
• Global climate change and a 2℃ temperature increase expected by 2050.
• Reduction in inequality and relative poverty (around 11% of the population in OECD countries live in relative poverty).
• Overweight and obese people (over 1.9 billion worldwide).
• Annual food waste (around 1.3 billion tons).

Mitigation Strategies

• Developing healthy products.
• Contributing to sustainable agriculture through the Tea-Producing Region Development Project.
• Working to reduce CO2 emissions.
• Taking steps to reduce environmental load and energy consumption.
• Working to reduce poverty and inequality through fair operating practices and labor practices.
• Developing Food for Specified Health Uses for people concerned about body fat.
• Promoting the recycling of used tea leaves.

Supply Chain Management

Responsible Procurement

• Tea-Producing Region Development Project

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: ISO 26000, GRI Sustainability Reporting Guidelines Version 4.0, Ministry of Environment’s Environmental Report Guidelines (2012 Edition)

UN Sustainable Development Goals

• Sustainable consumption and production
• Sustainable agriculture
• Sustainable cities and communities
• Health
• Education

ITO EN's activities contribute to these goals through initiatives like the Tea-Producing Region Development Project, used tea leaves recycling, and educational programs.

Sustainable Products & Innovation

• New recyclable, eco-friendly beverage carton
• Oi Ocha Koicha
• Catechin – Green Tea Series

Awards & Recognition

• 2013 Porter Prize
• Prize of the Minister of Agriculture, Forestry and Fisheries for the food industry sector (2015)
• Prize of the Minister of the Environment in the Global Environment Grand Prize Award (2016)
• Japan Water Prize (2016)
• 2014 Circular Resource Techniques and Systems Award
• Food Action Nippon Award (2015)

Environmental Metrics

ESG Focus Areas

• Dietary Habits and Health
• Sustainable Domestic Agriculture
• Environment
• Local Communities and Society
• Supply Chain
• Promotion of Diverse Human Assets
• Corporate Governance

Environmental Achievements

• Reduced GHG emissions by 16.3% from the reference year (FY4/2019) across the value chain.
• Increased recycled material usage in all PET bottles to 15%.

Social Achievements

• Launched the Tea Supporter project to support the future of tea by developing tea-producing regions.
• Resumed factory tours to enhance contact with customers.
• Launched Oi Ocha Maroyaka (fresh aroma and mild taste) through joint development with Chiba University students.

Governance Achievements

• Transitioned from a company with an Audit and Supervisory board to a company with an Audit and Supervisory Committee.
• Appointed a female Outside Director.

Climate Goals & Targets

Environmental Challenges

• Rising raw material and energy costs.
• Shrinking green tea leaf market in Japan.
• Need to further revitalize the green tea leaf market in Japan.
• Need to increase customers among young generation and women for sustainable development of the Oi Ocha brand.
• Shrinking coffee beverage market.
• Decreasing vegetable beverage market.
• Need to acquire new Aojiru product users and propose new ways for busy modern people to compensate for vegetable deficiencies.

Mitigation Strategies

• Price revisions for some products.
• Improved production and logistics efficiency.
• Concentrated marketing expenses for main brands.
• Strengthened management of profitability per vending machine.
• Appropriate personnel allocation and streamlining routes.
• Leveraging the Group’s local subsidiaries and distributors to strengthen sales of main products.
• Maintaining and improving efficiency through fabless management.
• Developing organically grown green tea and matcha raw ingredients using fewer agrochemicals.
• Expanding local production overseas.
• Optimizing supply chain.
• Launching new products targeted at young people, women and older consumers.
• Launching a new restaurant business, aostand, an Aojiru (Barley Grass Green Juice) stand.
• Launching powder vegetable products that are convenient and versatile.

Supply Chain Management

Supplier Audits: 100% for domestic beverage/leaf manufacturing factories

Responsible Procurement

• ITO EN Group Human Rights Policy
• ITO EN Group Fundamental Supplier Policy
• ITO EN Group Procurement Policy
• ITO EN Group Quality Policy

Climate-Related Risks & Opportunities

Physical Risks

• Decline in crop yield and quality due to rising temperatures.
• Loss of sales opportunities and recovery costs due to droughts, storms, and flood damage.

Transition Risks

• Increased costs due to carbon tax and use of recycled materials.
• Increased costs associated with transition to renewable energy sources and introduction of electric vehicles.

Opportunities

• Increased demand for heat-resistant, health-oriented, and environmentally friendly products.

Reporting Standards

Frameworks Used: GRI Standards, SASB Standards, TCFD, SDGs, ISO 26000

Certifications: FSSC 22000, Rainforest Alliance, GreenPla, OK Biodegradable MARINE, Healthier Choice, Halal, Kosher, White 500

UN Sustainable Development Goals

• 3
• 6
• 7
• 9
• 11
• 12
• 13
• 15
• 17

The report mentions contributions to various SDGs throughout the document, linking initiatives to specific goals.

Sustainable Products & Innovation

• Oi Ocha PET bottles for vending machines (weight reduction)
• Green Planet™ biodegradable telescopic straws
• Plant-derived Biodegradable Eco Filters
• ECO containers (aluminum-free paper pack-type drink containers)
• EV Bottle Car (with used tea leaf lightweight panels)

Awards & Recognition

• National Medal for Distinguished Contribution to Agriculture (Cattica, Costa Rica)
• Supplier Engagement Leader (CDP)