Climate Change Data

Environmental Metrics

ESG Focus Areas

• Health of mind, body, and environment
• Sustainable value chains
• Diversity and inclusion
• Conserving the global environment

Environmental Achievements

• 100% procurement ratio of sustainable raw materials (cacao beans, palm oil, and paper)
• 30% reduction in CO2 emissions (Scope 1+2, compared to FY2019/3)
• 25% reduction in plastics used for Jelly products packaging (compared to FY2020/3)
• 70% reduction in food loss and waste (domestic Group consolidated basis; intensity; compared to FY2020/3)

Social Achievements

• 80% of employees find their job meaningful and are in good mental and physical health at work
• 80% employee loyalty (positive responses to “I feel proud as a member of this company”)

Governance Achievements

• Achieved record high net sales
• Growing net sales of focused domains
• Receiving higher ESG scores from outside institutions
• Long-term credit rating: A stable (obtained from JCR)

Climate Goals & Targets

Environmental Challenges

• Rising health consciousness through food
• Socioeconomic and lifestyle changes brought about by the COVID-19 pandemic
• Declining birthrate/aging population and contraction of Japanese market (labor shortages)
• Changes in consumer behavior and business model driven by the evolution of digital technologies
• Rising world population and climate change, etc. (unstable raw materials procurement)
• Rising needs to resolve social issues (SDGs and ESG investment)

Mitigation Strategies

• Implement the 2030 Business Plan
• Promote Purpose-driven Management
• Strengthen the business management foundation
• Accelerate “health of body,” and Evolve “health of mind” to “health of body.”
• Explore establishment of a vision on a global basis.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• 100% procurement ratio of sustainable raw materials (cacao beans, palm oil, and paper)

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

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

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Contribute to Healthy Lives of People around the World
• Contribute to “Health of Mind, Body, and Environment”
• Diversity and Inclusion of People
• Achieve Sustainable Value Chains
• Conserve the Global Environment
• Strengthen Governance in Sustainability

Environmental Achievements

• Achieved a 99.9% sustainable paper usage rate for product packaging in FY2023.
• Reduced plastics used in in Jelly packaging by approximately 9% (approximately 70 tons per year) compared to the conventional level in February 2020.
• Takasaki Morinaga Co., Ltd. started receiving solar power through an on-site PPA in February 2023, reducing CO2 emissions by more than 1,100 tons per year.
• Morinaga Shibaura Building adopted a plan to supply electricity derived from renewable energy sources, aiming for essentially zero CO2 emissions.

Social Achievements

• Launched the in Jelly Recycling Program in September 2021.
• Sponsored online and in-person sports events, with a total of 250,916 participants.
• Donated products to children's cafeterias nationwide.
• Maintained an 80% positive response rate on the employee awareness survey.

Governance Achievements

• Established the Sustainable Management Division in April 2021 and the ESG Committee in April 2021.
• Established the Sustainability Advisory Board in April 2022.
• Endorsed the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD) in April 2022.
• Joined the UN Global Compact in April 2022.

Climate Goals & Targets

Environmental Challenges

• Climate change impacts on agricultural produce, yield, and extreme weather events.
• Rising costs due to stricter energy conservation policies and carbon taxes.
• Risks surrounding raw material procurement.
• Social issues in cacao bean production (poor working conditions, poverty, child labor).
• Plastic waste from products.
• Water resource shortages.

Mitigation Strategies

• Implementing carbon management, energy conservation, and renewable energy utilization.
• Promoting sustainable raw material procurement (cacao beans, palm oil, paper).
• Reducing food loss and waste.
• Improving loading rates and reducing transportation vehicles.
• Replacing CFC-using facilities with low-ozone-depletion-potential refrigerants or natural refrigerants.
• Implementing stricter measures to prevent leakage of CFC gas.
• Conducting water withdrawal surveys and evaluating water stress at production facilities.

Supply Chain Management

Supplier Audits: CSR procurement survey conducted on 48 main business partners in March 2022.

Responsible Procurement

• Morinaga Group Procurement Policy
• Morinaga Group Supplier Guideline

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events (cyclones, flooding)
• Changes in rainfall patterns

Transition Risks

• GHG emissions pricing
• Stricter GHG emissions reporting obligations
• Carbon taxes
• Energy conservation policies
• Decarbonization mandates

Opportunities

• Development of efficient manufacturing and distribution processes
• Rising demand for in Jelly and frozen desserts due to global warming
• Development of eco-friendly products

Reporting Standards

Frameworks Used: GRI Standards, TCFD, TNFD

Certifications: ISO 14001, FSSC 22000, JFS-B

Third-party Assurance: LRQA Limited

Sustainable Products & Innovation

• in Jelly with biomass-derived plastic packaging

Awards & Recognition

• Certified Health & Productivity Management Outstanding Organization
• Platinum Kurumin certification