Climate Change Data

株式会社 伊藤園

Climate Impact & Sustainability Data (2023-04 to 2024-04, 2024-04)

Reporting Period: 2023-04 to 2024-04

Environmental Metrics

Renewable Energy Share:4.9% (2022)

ESG Focus Areas

  • Climate Change
  • Natural Capital/Biodiversity

Environmental Achievements

  • Reduced Scope 1 and 2 GHG emissions by 17.7% (2022, compared to 2018)
  • Increased recycled material usage in all PET bottles to 36% in 2023 (aiming for 100% by 2030)
  • Reduced CO2 emissions per unit of production by 57% at a new Saitama factory (compared to typical factories)
  • Expansion of tea cultivation area to 2,437ha in 2022 (aiming for 2,800ha by 2030)

Social Achievements

  • Implemented human rights due diligence in tea cultivation and at the Shizuoka factory in 2023
  • Expansion of organic tea production to 273t in 2023 (aiming for 500t by 2030)
  • 100% maintenance and operation of GAP certification in tea cultivation

Governance Achievements

  • Established a Sustainability Promotion Committee
  • Incorporated ESG index evaluation results into executive compensation

Climate Goals & Targets

Long-term Goals:
  • Achieve carbon neutrality across the entire value chain by 2050
Medium-term Goals:
  • Achieve 100% renewable energy for electricity by 2030
  • Expand tea cultivation area to 2,800ha by 2030
  • Increase organic tea production to 500t by 2030
Short-term Goals:
  • Reduce Scope 1 and 2 GHG emissions by 50% by 2030 (2018 baseline)
  • Reduce Scope 3 GHG emissions by 20% by 2030 (2018 baseline)
  • Achieve 50% electric vehicle ratio for company vehicles by 2030

Environmental Challenges

  • Climate change impacts on tea, barley, and coffee yields and quality
  • Water risks (drought and flood) in tea, barley, and coffee production areas
  • Potential for soil degradation and eutrophication due to fertilizer runoff
  • Risks to factory and warehouse operations from extreme weather events
Mitigation Strategies
  • Diversification of sourcing locations
  • Risk sharing and collaborative mitigation efforts with suppliers
  • Implementation of water conservation measures in factories
  • Development of climate-resilient tea varieties
  • Promotion of environmentally friendly agriculture (reduced chemical fertilizers and pesticides)
  • Development and implementation of BCP measures
  • Introduction of a cloud-based cultivation management system and pesticide suitability determination system

Supply Chain Management

Responsible Procurement
  • Requirements for GHG emissions and water usage reduction targets from suppliers
  • Collaboration with suppliers on environmental load reduction

Climate-Related Risks & Opportunities

Physical Risks
  • Impacts of drought and flood on crop yields
  • Impacts of extreme weather on factory and warehouse operations
Transition Risks
  • Increased costs due to carbon tax
Opportunities
  • Increased demand for heatstroke prevention drinks and functional products
  • Increased demand for environmentally friendly products

Reporting Standards

Frameworks Used: TCFD, TNFD

Certifications: GAP

Sustainable Products & Innovation

  • Label-less products
  • Products using plant-derived biodegradable materials
  • Recyclable paper pack products

Reporting Period: 2024-04

Environmental Metrics

Total Carbon Emissions:Not disclosed
Scope 1 Emissions:Not disclosed
Scope 2 Emissions:Not disclosed
Scope 3 Emissions:Not disclosed
Renewable Energy Share:Not disclosed
Total Energy Consumption:Not disclosed
Water Consumption:Not disclosed
Waste Generated:Not disclosed
Carbon Intensity:Not disclosed

ESG Focus Areas

  • Sustainable Agriculture
  • Environmental Conservation
  • Health and Wellness
  • Community Engagement
  • Global Brand Building

Environmental Achievements

  • Reduced CO2 emissions in tea production through initiatives like using less energy and water in manufacturing, and promoting environmentally friendly agriculture.
  • Implemented a tea-leaf recycling system to upcycle tea leaves into secondary products, conserving resources and fixing CO2.
  • Utilized tea-leaf compost for circular agriculture.

Social Achievements

  • Launched the 'Nipponエール Project' with JA Zenchu to support local producers.
  • Held the 9th Itoen Wellness Forum to discuss health and wellness.
  • Published research articles on tea in Nature magazine.
  • Donated kettles to elementary and junior high schools to promote tea education.
  • Opened the O-i Ocha Museum to share the history and culture of tea.

Governance Achievements

  • Not disclosed

Climate Goals & Targets

Long-term Goals:
  • Become a global tea company by 2041, selling O-i Ocha in over 100 countries.
Medium-term Goals:
  • Achieve over 24% overseas sales of O-i Ocha by 2029.
  • Increase operating profit margin to 8% or more by 2029.
Short-term Goals:
  • Increase organic cultivation production to 380 tons by 2026 and 500 tons by 2030.
  • Expand domestic development area to 2,650ha by 2026 and 2,800ha by 2030.

Environmental Challenges

  • Rising raw material costs
  • Climate change impacting tea production
  • Decreasing tea cultivation area and production volume
Mitigation Strategies
  • Implementing cost-reduction measures and improving profitability.
  • Developing environmentally friendly agricultural practices (reduced pesticide use, organic farming, etc.).
  • Expanding tea cultivation area and developing high-quality raw materials.
  • Developing a pesticide suitability judgment system for overseas export raw materials.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement
  • Sourcing high-quality raw materials from domestic and international tea farms.
  • Collaborating with tea producers to ensure sustainable tea production.
  • Using domestically roasted barley and coffee beans (100%).
  • Obtaining Rainforest Alliance certification for Distant Lands Trading Co.'s own farms.

Climate-Related Risks & Opportunities

Physical Risks
  • Climate change impacting tea production
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

  • Guinness World Records for largest unsweetened green tea brand and best-selling RTD barley tea brand