Climate Change Data

Meiji Holdings Co., Ltd.

Climate Impact & Sustainability Data (2018-04-01 to 2019-03-31, 2019-04 to 2020-03, 2020-04 to 2021-03, 2021, 2023)

Reporting Period: 2018-04-01 to 2019-03-31

Environmental Metrics

Total Carbon Emissions:492,000 tons CO2e (FY2018)
Total Energy Consumption:9,587 TJ (FY2018)
Water Consumption:22,056,000 m³ (FY2018)
Waste Generated:62,000 tons (FY2018)

ESG Focus Areas

  • Healthier Lives
  • Caring for the Earth
  • A Richer Society
  • Sustainable Procurement

Environmental Achievements

  • Reduced total domestic CO2 emissions by 16.8% compared with FYE March 2014 baseline (excluding KM Biologics Co., Ltd.)
  • Reduced domestic water use volume by 12.2% compared with FYE March 2016 baseline (excluding KM Biologics Co., Ltd.)
  • Food segment reduced production waste by an annual 24 tons
  • Resource recovery ratio of 95.6%
  • Reduced PET plastic volume by approximately 26% per bottle
  • Reduced packaging volume by approximately 25%

Social Achievements

  • Nutrition and healthy diet education activities reached 196,000 participants
  • Plant tours reached 212,000 participants
  • Sports Nutrition seminar reached 72,000 participants
  • Home delivery service reached 2.6 million families
  • 100% of new employees and those promoted to management positions received training on human rights

Governance Achievements

  • Established a Compliance & Risk Management Committee in Food and Pharmaceutical segments
  • Implemented human rights due diligence
  • Endorsing the TCFD, Joining the TCFD Consortium

Climate Goals & Targets

Long-term Goals:
  • Aim to raise the ratio of female managers to greater than 10% by FYE March 2027
  • Aim to triple the number of female leaders in FYE March 2018 to more than 420 by the FYE March 2027
  • Eliminate the use of specified fluorocarbons in air conditioners and large-scale facilities in Japan by FYE March 2036
Medium-term Goals:
  • Reduce domestic food product waste by at least 50% compared with FYE March 2017 baseline by FYE March 2026
  • Reduce total domestic CO2 emissions by more than 15% compared with FYE March 2014 baseline by FYE March 2031
  • Reduce domestic water use volume by more than 20% compared with FYE March 2016 baseline by FYE March 2031
  • Use 100% of RSPO-certified palm oil by FYE March 2024
  • Use 100% of paper raw materials including paper with FSC® or other certifications and post-consumer paper by FYE March 2021 (Product containers and packaging produced in Japan)
Short-term Goals:
  • Enroll a total of 500,000 people into nutrition and healthy diet education within three years from FYE March 2019 to FYE March 2021
  • Obtain Global Food Safety Initiative (GFSI) certification for all domestic food plants by FYE March 2021

Environmental Challenges

  • Reducing CO2 emissions
  • Reducing water consumption
  • Reducing food loss and waste
  • Improving traceability of cocoa
  • Shifting to 100% RSPO-certified palm oil
  • Expanding the use of environmentally friendly paper
  • Addressing aging dairy farmers and declining milk consumption
  • Counteracting antimicrobial resistance (AMR)
Mitigation Strategies
  • Energy conservation measures, renewable energy, carbon emissions trading
  • Appropriate water management and water conservation equipment, greywater recycling systems
  • Improved supply forecasts, changing expiration labels, extending expiration dates, collaborating with food banks
  • Meiji Cocoa Support program
  • Shifting to RSPO-certified palm oil
  • Expanding the use of FSC®-certified paper
  • Meiji Dairy Advisory (MDA) program, organic drinking milk
  • Public awareness activities concerning AMR, new drug research and development

Supply Chain Management

Supplier Audits: 381 companies audited in FY2017-FY2019

Responsible Procurement
  • Meiji Group Procurement Policy
  • Cocoa Procurement Guideline
  • Palm Oil Procurement Guideline
  • Paper Procurement Guideline
  • Raw Milk Procurement Guideline

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Sustainability Reporting Standards (2016), SASB, TCFD

Certifications: ISO 14001, ISO 45001

Third-party Assurance: Deloitte Tohmatsu Sustainability Co., Ltd.

Sustainable Products & Innovation

  • Meiji Probio Yogurt, Drink Type (reduced PET bottle weight)
  • Chocolate Snacks: Kinoko no Yama, Takenoko no Sato (reduced packaging thickness)
  • Chocolate Snacks: Galbo Pocket Pack (reduced packaging volume)

Awards & Recognition

  • Dow Jones Sustainability Asia Pacific Index (DJSI Asia Pacific)
  • SNAM Sustainability Index
  • A- rating in CDP climate change
  • 17th rank in 2018 Access to Nutrition Index™ (ATNI)
  • Certified Health and Productivity Management Organization (White 500)

Reporting Period: 2019-04 to 2020-03

Environmental Metrics

Total Carbon Emissions:489,000 tons-CO2 (FY2020)
Total Energy Consumption:10,522 TJ (FY2020)
Water Consumption:21,822,000 m³ (FY2020)
Waste Generated:65,000 tons (FY2020)

ESG Focus Areas

  • Healthier Lives
  • Caring for the Earth
  • A Richer Society

Environmental Achievements

  • 18.5% reduction in group-wide CO2 emission volume (Scope 1 and 2) compared with FYE 3/2016 baseline by FYE 3/2020
  • 4.1% reduction in group-wide water consumption volume (per unit of sales) compared with FYE 3/2018 baseline by FYE 3/2020
  • 94.6% resource recovery ratio per year (domestic Meiji Group companies) in 2020
  • 25.1% reduction in domestic food product waste compared with FYE 3/2017 baseline by FYE 3/2020

Social Achievements

  • Launched Meiji TANPACT, new products containing a good balance of essential amino acids
  • Cumulative total 407,000 participants in nutrition and healthy diet education activities by FYE 3/2020
  • 100% of new employees and those promoted to management positions received training on human rights in FY2020
  • Improved employee engagement score higher than the average score of other companies

Governance Achievements

  • Established the Meiji Group Policy on Human Rights in 2016 and revised it in February 2020
  • Established the Meiji Group Anti-Corruption Policy in March 2019
  • Established the Meiji Group Tax Policy in March 2019

Climate Goals & Targets

Long-term Goals:
  • Eliminate all CO2 and other greenhouse gas emissions throughout our entire supply chain by 2050 (carbon neutral)
  • Use 100% renewable energy in facilities by 2050
  • Reduce water use intensity per unit of sales by 50% by 2050 compared with FYE March 2018
  • Restore 100% of the water used as raw material for products by 2050 (water-neutral)
Medium-term Goals:
  • Reduce group-wide CO2 emission volume (Scope 1 and 2) by at least 40% compared with FYE 3/2016 baseline by FYE 3/2031
  • Increase the share of renewable energy to at least 50% of group-wide power usage by FYE 3/2031
  • Reduce group-wide water consumption volume (per unit of sales) by at least 20% compared with FYE 3/2018 baseline by FYE 3/2031
  • Reduce domestic plastic usage by at least 25% compared with FYE 3/2018 baseline by FYE 3/2031
  • Increase procurement ratio of sustainable cocoa beans to 100% by FYE 3/2027
Short-term Goals:
  • Obtain third-party Global Food Safety Initiative (GFSI) certification at all domestic food plants by FYE 3/2021 and all global food plants by FYE 3/2022
  • Conduct biodiversity activities at all production sites in Japan by FYE 3/2021, and all production sites worldwide by FYE 3/2024

Environmental Challenges

  • Climate change impacting dairy ingredients and infectious diseases
  • Water scarcity
  • Loss of biodiversity
  • Reduced protein intake in Japan
  • Malnutrition in emerging countries
  • Antimicrobial resistance (AMR)
  • Deforestation in cocoa supply chain
Mitigation Strategies
  • Scenario analysis based on TCFD recommendations
  • Initiatives to reduce water use intensity and cultivate water resources
  • Biodiversity conservation activities
  • Development of Meiji TANPACT products
  • Nutrition improvement business model using MEI-LIFE in Vietnam
  • Public awareness activities concerning AMR
  • Meiji Cocoa Support program

Supply Chain Management

Supplier Audits: 80 supplier audits in FY2020

Responsible Procurement
  • Meiji Group Procurement Policy
  • Supplier Code of Conduct
  • Cocoa Procurement Guideline
  • Palm oil Procurement Guideline
  • Paper Procurement Guideline
  • Raw Milk Procurement Guideline

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather events impacting dairy ingredients and infectious diseases
Transition Risks
  • Introduction of carbon taxes
Opportunities
  • Development of energy-efficient products and processes

Reporting Standards

Frameworks Used: GRI Sustainability Reporting Standards (2016), SASB, TCFD

Certifications: ISO 14001, ISO 45001, Informed Choice

Third-party Assurance: Deloitte Tohmatsu Sustainability Co., Ltd.

Sustainable Products & Innovation

  • Meiji TANPACT products
  • Products with reduced sugar, fat, and calories

Awards & Recognition

  • Dow Jones Sustainability Asia Pacific Index (DJSI Asia Pacific) component (2019 and 2020)
  • CDP Climate Change and Water Security A- rating (2020)
  • White 500: Certified Health and Productivity Management Organization (since 2017)

Reporting Period: 2020-04 to 2021-03

Environmental Metrics

Total Carbon Emissions:56300 tons-CO2e
Scope 1 Emissions:21500 tons-CO2e
Scope 2 Emissions:25400 tons-CO2e
Scope 3 Emissions:294900 tons-CO2e
Renewable Energy Share:2.5%
Total Energy Consumption:9766 TJ
Water Consumption:21895000 m3
Waste Generated:2500 tons
Carbon Intensity:47.2 t-CO2e/100 million yen

ESG Focus Areas

  • Healthier Lives
  • Caring for the Earth
  • Thriving Communities
  • Sustainable Sourcing
  • Governance

Environmental Achievements

  • Reduced company-wide CO2 emissions (Scope 1, 2) by 24.1% compared to FYE 3/2016.
  • Expanded renewable energy usage to 2.5% of total company-wide usage.
  • Reduced water use intensity per unit of sales by 5.3% compared with FYE March 2018.
  • Increased usage of FSC® or PEFC-certified paper and post-consumer paper to 77% of total usage.

Social Achievements

  • Increased the ratio of female managers to 3.7%.
  • Increased the number of female managers (including assistant managers) to 208.
  • Raised the ratio of employees with disabilities to 2.42%.
  • Achieved 100% attendance rate at human rights training among new employees and those promoted to managing positions.
  • 504,000 participants in nutrition education.

Governance Achievements

  • Established the ESG Advisory Board.
  • Established the Group HR Strategy Department.
  • Issued sustainability bonds.

Climate Goals & Targets

Long-term Goals:
  • Achieve carbon neutrality by 2050.
  • Replenish an amount of water to nature equivalent to 100% the amount used in our products by 2050.
Medium-term Goals:
  • Reduce company-wide CO2 emissions (Scope 1, 2) by at least 40% by FYE 3/2031.
  • Expand renewable energy usage to at least 50% by FYE 3/2031.
  • Reduce company-wide water consumption volume per unit of sales by 50% by 2050.
  • Increase procurement of sustainable cocoa to 100% by FYE 3/2027.
  • Achieve 100% replacement with RSPO-certified palm oil by FYE 3/2024.
Short-term Goals:
  • Reduce product waste in domestic food business by 50% by FYE 3/2026.
  • Reduce domestic plastic usage by at least 15% by FY2023 and 25% by FY2030 (compared to FY2017).

Environmental Challenges

  • Climate change impacts on raw material supply (dairy, cocoa).
  • Water scarcity in some operating regions.
  • Maintaining a responsible supply chain.
  • Reducing Scope 3 emissions.
  • Reducing plastic usage.
Mitigation Strategies
  • Science Based Targets initiative (SBTi) alignment.
  • Water risk assessments and mitigation strategies.
  • Meiji Group Supplier Code of Conduct.
  • Initiatives to reduce Scope 3 emissions (modal shift, sustainable palm oil).
  • Meiji Group Plastic Policy.

Supply Chain Management

Supplier Audits: 434 audits in FY2021

Responsible Procurement
  • Meiji Group Procurement Policy
  • Meiji Group Supplier Code of Conduct
  • Sustainable sourcing surveys

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather events impacting raw material supply.
Transition Risks
  • Regulatory changes related to emissions and resource use.
Opportunities
  • Development of energy-efficient products and processes.
  • Increased demand for sustainable products.

Reporting Standards

Frameworks Used: GRI Standards, SASB Standards, TCFD Recommendations, UN Global Compact

Certifications: ISO 14001, ISO 45001, RSPO

Third-party Assurance: Deloitte Tohmatsu Sustainability

UN Sustainable Development Goals

  • Goal 2
  • Goal 3
  • Goal 4
  • Goal 5
  • Goal 6
  • Goal 7
  • Goal 8
  • Goal 10
  • Goal 12
  • Goal 13
  • Goal 14
  • Goal 15
  • Goal 17

Initiatives contribute to these goals through various programs and activities.

Sustainable Products & Innovation

  • Meiji TANPACT products
  • Products with reduced sugar, fat, and calories
  • Eco-friendly packaging

Awards & Recognition

  • CDP A-list company for water security
  • Selection for DJSI Asia Pacific Index for three consecutive years
  • Recognition for outstanding health and productivity management

Reporting Period: 2021

Environmental Metrics

ESG Focus Areas

  • Climate Change
  • Water Security
  • Circular Economy
  • Human Rights
  • Community
  • Healthy Diets
  • Value-added Nutrition
  • Super-aged Society
  • Animal Welfare
  • Diversity & Inclusion

Environmental Achievements

  • Joined the Japan Climate Leaders’ Partnership (JCLP)
  • Joined RE100
  • Adopted an internal carbon pricing system (JPY 5,000/t-CO2)
  • Acquired SBT (Science Based Targets) certification
  • Joined Japan Hydrogen Association (JH2A)

Social Achievements

  • Improved employee engagement score
  • Increased sales growth rate for products contributing to healthy diets, value-added nutrition, and a super-aged society
  • Meiji Dairy Advisory (MDA) cumulative visits increased to 948 by FY2020, targeting more than 2,150 by FY2023
  • Appointed Meiji Brand Promotion Leaders to accelerate efforts to unify sustainability and business operation

Governance Achievements

  • Revised Corporate Governance Policy to reflect the revised Corporate Governance Code and Stakeholder Engagement Guidelines
  • Created a new chapter on sustainability in the Corporate Governance Policy
  • Reviewed policy to further improve efficiency of the Board of Directors, including third-party assessments
  • Appointing independent outside directors to chair Nomination Committee and Compensation Committee

Climate Goals & Targets

Long-term Goals:
  • Eliminate CO2 and other greenhouse gas emissions throughout our entire supply chain
  • Become carbon neutral
  • Meiji Group Long-Term Environmental Vision: Meiji Green Engagement for 2050
Medium-term Goals:
  • Target for FY2023: Extend healthy life expectancy +1 year; Amount of protein intake 75g/day; Vaccination rate for influenza vaccine 60%; Employee engagement score A; Sales growth rate for products that contribute to healthy diets, value-added nutrition products, products that contribute to a super-aged society At least +10% (compared to FY2020); Success in and supply of vaccine and therapeutic agent for COVID-19: Development and supply
Short-term Goals:
  • Reduce water use intensity per unit of sales by 50%
  • Restore 100% of the water used as raw material for products (Water Neutrality)
  • Achieve target for FY2023 ≥ 11% ROE

Environmental Challenges

  • Decreasing GHG emissions from the dairy sector
  • Improving animal welfare in the dairy industry
  • Addressing human rights issues in the dairy industry
Mitigation Strategies
  • Implementing strategies to reduce GHG emissions from the dairy sector (feed and feeding management, manure management, fertilizer management, energy use at the farm, animal health and husbandry)
  • Using relationships with farmers through MDA to contribute to sustainable dairy production
  • Focusing on initiatives to improve animal welfare and address human rights concerns within the dairy supply chain

Supply Chain Management

Responsible Procurement
  • Efforts to reduce GHG emissions from the dairy sector, including working with farmers through MDA

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: MSCI ESG Ratings, DJSI, FTSE4Good, CDP

Certifications: SBT (Science Based Targets)

Reporting Period: 2023

Environmental Metrics

Total Carbon Emissions:389,100 tCO2e/year (Scope 3 Global)
Scope 1 Emissions:42,400 tCO2e/year
Scope 2 Emissions:21,900 tCO2e/year
Scope 3 Emissions:322,700 tCO2e/year (FY2021)
Renewable Energy Share:15% (FY2023)
Total Energy Consumption:760,199 MWh/year (Electricity)
Water Consumption:20,629,000 m3/year (Extraction Total)
Waste Generated:27,000 tons/year (Global Total)
Carbon Intensity:Not disclosed

ESG Focus Areas

  • Healthier Lives
  • Caring for the Earth
  • Thriving Communities
  • Sustainable Sourcing

Environmental Achievements

  • Achieved 100% switch to RSPO-certified palm oil
  • Reduced company-wide CO2 emissions (Scope 1, 2) by 19% compared to the base year (2020)
  • Reduced CO2 emissions (Scope 3 from purchased goods and services) by 11% compared to the base year (2020)
  • Increased renewable energy usage to 15% of total company-wide usage
  • Reduced water use intensity per unit of sales by 13.4% compared to the base year (2021)
  • Replenished an amount of water to nature equivalent to 41.3% of the amount used in products
  • Reduced product waste in domestic food business by 31.5% compared to the base year (2017)
  • Reduced domestic plastic usage by 18.3% compared to the base year (2018)
  • Achieved 86.1% consolidated domestic recycle rate

Social Achievements

  • Increased the ratio of female managers to 5.6%
  • Increased the number of female managers (including assistant managers) to 256
  • Maintained the ratio of employees with disabilities above Japan's legal requirement
  • All domestic Meiji Group employees attended human rights training at least once annually (92% participation rate)
  • All overseas Meiji Group employees attended human rights training at least once (84% participation rate)
  • All Meiji Group employees in Japan participated in social contribution activities at least twice annually (92% participation rate)

Governance Achievements

  • Established the ESG Advisory Board
  • Held ESG session for investors and advisory board meetings at least three times annually
  • Implemented Meiji ROESG® management indicator

Climate Goals & Targets

Long-term Goals:
  • Achieve carbon neutrality by 2050
  • Achieve water neutrality by 2050
  • Achieve zero pollution by 2050
Medium-term Goals:
  • Reduce company-wide CO2 emissions (Scope 1, 2) by at least 50% by FY2031
  • Reduce CO2 emissions (Scope 3) by at least 30% by FY2031
  • Expand renewable energy usage to make up at least 50% of total company-wide usage by FY2031
  • Total abolition of CFC-using equipment by FY2031
  • Achieve carbon neutrality by 2050
  • Achieve water neutrality by 2050
  • Achieve zero waste in the manufacturing process by 2050
  • Increase sourcing rate of Meiji sustainable cocoa to 100% by FY2027
  • Switch 100% to RSPO-certified palm oil by FY2024
  • Switch 100% to eco-friendly paper by FY2024
Short-term Goals:
  • Reduce company-wide water consumption per unit of sales by 15% by FY2031
  • Replenish an amount of water to nature equivalent to 45% the amount used in our products by FY2031
  • Reduce product waste in domestic food business by 50% by FY2026
  • Reduce domestic plastic usage by 25% by FY2031
  • Increase the ratio of female managers at least 10% by FYE 3/2027
  • Increase the number of female managers to at least 420 by FYE 3/2027

Environmental Challenges

  • Reducing Scope 3 emissions
  • Achieving carbon neutrality by 2050
  • Securing water resources
  • Minimizing the use of new natural capital
  • Reducing food loss
  • Increasing employee sustainability engagement
  • Improving the Meiji NPS (Nutritional Profiling System)
  • Strengthening engagement with overseas Group companies to achieve global sustainability
Mitigation Strategies
  • Collaboration with suppliers and producers to reduce GHG emissions
  • Adoption of internal carbon pricing system
  • Initiatives to visualize emissions in each process of the supply chain
  • Expanding the use of J-Credits at dairy farms
  • Establishing new mechanisms, including carbon farming
  • Improving demand planning to reduce dead stock
  • Changing best before date labelling
  • Extending best before dates without sacrificing quality
  • Working with the distribution industry to review the “one-third rule”
  • Conducting water risk evaluations at each business site
  • Implementing water-saving measures
  • Cultivating water resources
  • Implementing a multilingual grievance system for foreign workers
  • Engaging suppliers and group companies with high human rights risks for improvement
  • Promoting employee engagement through various initiatives

Supply Chain Management

Supplier Audits: 184 suppliers assessed for risk (FY2023)

Responsible Procurement
  • Meiji Group Procurement Policy
  • Meiji Group Supplier Code of Conduct
  • Sustainable procurement questionnaires
  • Engagement with key suppliers

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather events
  • Flooding
  • Droughts
Transition Risks
  • Regulatory changes
  • Market shifts
  • Increased costs for raw materials
Opportunities
  • Development of energy-efficient products
  • Expansion of renewable energy usage
  • New revenue streams from carbon farming

Reporting Standards

Frameworks Used: GRI, SASB, TCFD, UNGC, SDGs

Certifications: ISO 14001, ISO 45001, RSPO, Informed Choice, SEGES

Third-party Assurance: Deloitte Tohmatsu Sustainability

UN Sustainable Development Goals

  • Goal 2: Zero Hunger
  • Goal 3: Good Health and Well-being
  • Goal 7: Affordable and Clean Energy
  • Goal 8: Decent Work and Economic Growth
  • Goal 12: Responsible Consumption and Production
  • Goal 13: Climate Action
  • Goal 15: Life on Land
  • Goal 17: Partnerships for the Goals

The report details how various initiatives contribute to these goals.

Sustainable Products & Innovation

  • Meiji Agroforestry Milk Chocolate
  • Products with reduced sugar, fat, and calories
  • Products using recycled and bioplastics

Awards & Recognition

  • Dow Jones Sustainability World Index
  • Morningstar Japan Gender Diversity Tilt Index
  • MSCI Japan Empowering Women Index
  • Health and Productivity Management certification
  • Rainbow Certification
  • Gold in PRIDE Indicator 2023