Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental Load Reduction
• Food Safety and Security
• Promotion of Human Rights and Diversity
• Social Contribution Activities
• Governance

Environmental Achievements

• Reduced food waste production unit by 19.6% (2020-2021)
• Reduced CO2 emissions per unit of sales by 5.5% (2020-2021)
• Introduction of energy-saving equipment and solar power generation
• Environmentally conscious product design
• Promotion of paperless office

Social Achievements

• Held the first Women's Active Forum (2021)
• Implemented action plan for male parental leave
• Promotion of telework
• Workplace revitalization workshops to improve work engagement
• Promotion of employment of persons with disabilities
• Company-wide harassment education through e-learning
• Donation of Alphabet chocolate to child welfare facilities and medical workers

Governance Achievements

• Regular meetings of the Nomination and Remuneration Committee and the Compliance Committee
• Formulation and publication of medium-term management plans
• Compliance with revisions to the Corporate Governance Code

Climate Goals & Targets

Environmental Challenges

• Environmental load (CO2 emissions, food waste)
• Human rights and poverty in cocoa bean production
• Environmental burden (transportation, storage)
• Food waste

Mitigation Strategies

• Reduction of food waste and CO2 emissions
• Support for cocoa bean producing areas
• Introduction of energy-saving equipment and solar power generation
• Environmentally conscious product design
• Promotion of paperless office
• Maintaining FSSC22000, Halal, and Kosher certifications

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: TCFD

Certifications: FSSC 22000, Halal, Kosher

Environmental Metrics

ESG Focus Areas

• Climate Change
• Environmental Sustainability
• SDGs

Environmental Achievements

• Reduced Scope 1 and 2 greenhouse gas emissions by 19.4% in 2023 (compared to 2020, sales floor area basis).

Social Achievements

• Established a Sustainability Promotion Committee in March 2023 to promote SDGs initiatives.
• Not disclosed

Governance Achievements

• Established a Sustainability Promotion Committee in March 2023, reporting to the Board of Directors semi-annually.

Climate Goals & Targets

Environmental Challenges

• Increased costs due to strengthened regulations for renewable energy transition and low-carbon materials (2℃ scenario).
• Increased costs due to intensified natural disasters (4℃ scenario).
• Increased costs to reduce plastic usage due to regulations.
• Potential negative impact on investor reputation due to delays in GHG reduction or insufficient information disclosure.
• Sales decrease due to business disruptions from intensified natural disasters.
• Business disruption due to flooding at facilities from intensified natural disasters.
• Potential decrease in chocolate and powdered beverage sales due to rising temperatures.

Mitigation Strategies

• Introduction of energy-saving equipment and electrification of equipment (Scope 1).
• Introduction of renewable energy (Scope 2).
• Implementation of in-house plastic reduction activities, switching to paper containers, and reviewing packaging materials requiring low-carbon ingredients.
• Support and requests for decarbonization from major suppliers.
• Development of low-carbon products.
• Calculation and disclosure of GHG emissions.
• Continuous information disclosure to stakeholders.
• Responding to external climate change ratings.
• Identification of high-risk locations for natural disasters.
• Strengthening BCP measures.
• Identification of high-risk locations for natural disasters.
• Examination and implementation of countermeasures and clarification of schedules.
• Development of products that sell even in summer.
• Promotion of food loss reduction activities.
• Improvement of sales planning accuracy.
• Recycling/donation to food banks, etc.
• Expansion of environmentally friendly businesses.
• Strengthening GHG reduction efforts.
• Calculation of the contribution amount of our own services.
• Product expansion of the powder business.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Support and requests for decarbonization from major suppliers.

Climate-Related Risks & Opportunities

Physical Risks

• Intensified natural disasters (typhoons, flooding)
• Rising temperatures impacting sales

Transition Risks

• Increased costs due to regulations on renewable energy and low-carbon materials.
• Increased costs due to regulations on carbon emissions and fossil fuel use.
• Negative impact on investor reputation due to delays in GHG reduction or insufficient information disclosure.

Opportunities

• Cost reduction through environmental considerations.
• Attracting environmentally conscious personnel.
• Increased sales due to rising temperatures (increased demand for hydration beverages).

Reporting Standards

Frameworks Used: TCFD

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed