Climate Change Data

Environmental Metrics

ESG Focus Areas

• Realizing healthy and affluent eating habits
• Considering the environment
• Creating a workplace where each employee can actively participate
• Promoting sustainable procurement and stable supply
• Contributing to local communities
• Strengthening corporate governance
• Preference for uncompromising flavor and high quality

Environmental Achievements

• Reduced CO2 emissions from shipping by 45 tons per year through a modal shift to rail transport (joint shipping with Kewpie)
• Recycled food waste to produce 500 tons of quality fertilizer annually at the Yonekyu Eco Project Center
• Switched approximately 42% of company vehicles to hybrid vehicles by February 2021 to reduce CO2 emissions
• ANZCO reduced water use by 40% at its Rangitikei factory compared to the previous year.

Social Achievements

• Launched Onikuya-san no Daizu MEAT, a soy bean-based meat alternative
• Shifted towards environmentally-friendly packaging materials for new and existing products
• Launched Marude Oniku! series of soy-meat products
• Participated in the TANPACT business collaboration to promote healthy eating with whey protein
• Established a remote working system to improve work-life balance
• Held food and menu planning workshops for university students
• Regular dietary educational activities in major Chinese cities
• Supported Mt. Fuji preservation activities through donations to the FUJISAN Fund
• Entered into a comprehensive partnership agreement with the City of Kobe
• Offered occupational lectures for children and students in Numazu City
• Donated to the Kobe Forest School and dispatched employee volunteers for Mt. Rokko Natural Environmental Preservation Activities

Governance Achievements

• Established a Sustainability Committee in April 2021
• Reduced the number of directors from 9 to 6 in June 2021 to strengthen governance
• Established Nomination Advisory Committee, Compensation Advisory Committee, and Governance Committee
• Implemented performance-based compensation
• Established Basic Policy on Corporate Governance
• Established Basic Policy on Officer Compensation
• Established a Basic Policy on Sustainability
• Held a self-evaluation survey on the effectiveness of the Board of Directors in October 2020
• Established Internal Consultation Hotline and Outside Consultation Hotline for compliance reporting
• Conducted a Compliance Awareness Survey for all employees annually

Climate Goals & Targets

Environmental Challenges

• Unfulfilled goals in the Medium-term Management Plan 2020 due to unexpected changes in the external environment (rise in the cost of main ingredients and logistics)
• Unstable procurement of meat due to animal diseases and COVID-19
• Shrinking gift market in Japan
• Declining population, low birth rate, and aging population in Japan
• Changes in consumption and communication centered around the home due to COVID-19
• Increased demand for new protein sources
• Rising awareness of safety and reliability
• Increased costs for personnel and logistics due to labor shortages
• Expanding range of fluctuations in market environment due to COVID-19
• Increasing risks of disease (ASF, CSF)
• Need for time reduction and demand for convenient products
• Potential reputational damage on social media

Mitigation Strategies

• Established Medium-term Management Plan 2023 with focus on rapid growth, strengthening management base, earnings base, new businesses and markets, and sustainability initiatives
• Strengthened response capabilities for each sales channel and developed convenient, time-saving products
• Developed digital transformation tools for standard management of domestic pork and beef
• Focused on enhancing brand strengths of Itoham and Yonekyu
• Improved ability to breakthrough and be thorough in operations
• Enhanced lineup of prepared foods
• Increased rate of operation for reduced personnel assembly lines
• Enhanced convenience, specialty, authenticity, and usability of cook-at-home products
• Strengthened online shop
• Enhanced products with long shelf lives and products stored at room temperature
• Developed products for discount drug store channels
• Strengthened initiatives for SDGs and social contribution activities
• Merged product procurement and strategy divisions from Itoham and Yonekyu
• Expanded livestock business with pork and beef
• Strengthened product supply system
• Developed sales activities that match market trends
• Enhanced product and menu proposals
• Advanced cooperation with suppliers to ensure stable supply
• Established a remote working environment and operating rules
• Created a remote workspace for online negotiations and discussions
• Implemented thorough infection prevention measures in all offices
• Promoted remote work and digitization initiatives

Supply Chain Management

Responsible Procurement

• Visits to production facilities outside Japan to check compliance with standards and regulations
• Rigorous checks on products from partner factories by the Quality Control Division
• Regular factory audits and inspections at partner factories

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: International Framework from the IIRC, Environmental Reporting Guidelines 2018 from the Ministry of the Environment, GRI

Certifications: ISO22000, FSSC22000 (Food safety and quality control), ISO14001, EcoAction 21 (Environmental management)

Sustainable Products & Innovation

• Onikuya-san no Daizu MEAT
• Marude Oniku! series
• Environmentally friendly packaging

Environmental Metrics

ESG Focus Areas

• Climate Change
• Human Rights
• Animal Welfare

Environmental Achievements

• Reduced GHG emissions through initiatives such as boiler fuel replacement and rooftop solar power introduction at various plants.
• Reduced the amount of plastic used in product packaging by approximately 240 tons per year.

Social Achievements

• Improved employee engagement score (specific percentage not provided).
• Increased percentage of women in management positions to 6.0% (from 5.4% in FY2022).
• Increased percentage of women in chief positions to 11.8% (from 11.5% in FY2022).
• Maintained 100% animal waste recycling rate.
• Conducted interviews with foreign technical intern trainees to assess human rights impacts.

Governance Achievements

• Incorporated improvements in the employee engagement score and the percentage of female managers into compensation for directors and officers from FY2024.
• Implemented a non-financial evaluation bonus based on ESG performance.

Climate Goals & Targets

Environmental Challenges

• Rising raw material prices and logistics costs.
• Aging production plants and workforce shrinkage.
• Limited suitable land for new production bases in Japan.
• Labor shortages.
• Maintaining a competitive position in a mature market.

Mitigation Strategies

• Price revisions and internal cost reductions.
• Plant reorganization and investment in new equipment.
• Digital transformation (DX) initiatives to improve efficiency and reduce labor costs.
• Collaboration with external partners for logistics and procurement.
• Growth investments in new business areas (frozen foods, alternative proteins, overseas markets).

Supply Chain Management

Supplier Audits: 163 suppliers surveyed (representing 80% or more of total procurement value) in FY2023

Responsible Procurement

• ITOHAM YONEKYU Group Procurement Policy
• Supplier Procurement Guidelines
• Supplier surveys on human rights and animal welfare

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: International Framework from the IIRC, Guidance for Collaborative Value Creation 2.0 from the Ministry of Economy, Trade and Industry, Environmental Reporting Guidelines 2018 from the Ministry of the Environment, Sustainability Reporting Standards from GRI

Sustainable Products & Innovation

• Products with environment-friendly packaging

Environmental Metrics

ESG Focus Areas

• Reducing greenhouse gas emissions
• Reducing the consumption of energy and water
• Reducing waste emissions
• Preserving biodiversity
• Reducing the amount of plastic usage
• Personnel development and training
• Respecting diversity
• Promoting a healthy work-life balance
• Occupational health and safety, health management, and the respect of human rights
• Contributing towards a sustainable livestock industry
• Promoting procurement that respects human rights
• Animal welfare considerations
• Contributing to local communities
• Observing and promoting compliance
• Risk management

Environmental Achievements

• 20% reduction in heavy oil usage at The GRAND Alt Bayern through the introduction of energy-efficient equipment and waste oil boilers
• 30% reduction in the amount of plastic usage in the entire product (expected value)
• Verification of feed effect of cashew nut shell liquid feed (Rumeup ® *) derived from natural materials that it works to suppress methane in cow burp.

Social Achievements

• Acquisition of Moregate Biotech, animal-derived blood products business
• Joint venture “Kyusyu Extract, Inc.” established with Mitsubishi Corporation Life Sciences Limited for effective use of by-products
• Participation in the “Go for 80g per day! Protein Enlightenment Project” with Meiji Co., Ltd. and Maruha Nichiro Corporation

Governance Achievements

• Established a Sustainability Committee chaired by the executive officer in charge as an advisory body to the Board of directors
• Established the Sustainability Management Office in April 2022 to lead specific initiatives for materiality

Climate Goals & Targets

Supply Chain Management

Responsible Procurement

• Promoting procurement that respects human rights
• Animal welfare considerations

Climate-Related Risks & Opportunities