Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate Change
• Resource Sustainability
• Recycling
• Water Resources
• Food Safety
• Workstyle Reform
• Diversity and Inclusion
• Human Resources
• Work Engagement
• Quality Control
• Health and Nutrition
• Compliance
• Governance

Environmental Achievements

• Reduced CO2 emissions by 26.9% compared to Fiscal 2013 (2023 data)
• Increased recyclable energy use to 0.10% in 2023
• Increased the percentage of paper made of eco-friendly materials to 99.0% in 2023
• Reduced petroleum-derived plastic usage per unit of sales revenue by 12.2% compared to Fiscal 2018 (2023 data)
• Reduced waste by 34.4% compared to Fiscal 2013 (2023 data)
• Increased recycled waste to 98.8% in 2023
• Increased recycled food waste to 96.3% in 2023
• Increased recycled plastic waste to 98.3% in 2023
• Reduced water used by 10.5% compared to Fiscal 2013 (2023 data)

Social Achievements

• Increased female share of total regular employees to 16.9% in 2023
• Increased percentage of females in management positions to 7.8% in 2023
• Increased annual paid leave taken to 83.3% in 2023
• Reduced absenteeism to 1.8 days in 2023
• Maintained high employee unionization (99.6% in 2023)
• Consistently high participation rates in various training programs
• Engagement score of 63.3 points in 2023
• Reduced work-related injury accident frequency rate to 0.92 in 2023

Governance Achievements

• Established an internal whistleblowing hotline and an external hotline
• Maintained a high percentage of certification under an international food safety scheme (96% in 2022 and 2023)
• Company with Audit and Supervisory Committee

Climate Goals & Targets

Environmental Challenges

• Reducing Scope 3 emissions
• Further reducing water usage
• Maintaining high employee engagement and reducing absenteeism
• Further improving gender diversity in management
• Addressing health issues impacting productivity

Mitigation Strategies

• Implementing various initiatives to reduce emissions across all scopes
• Continuous improvement in water management practices
• Investing in employee well-being programs
• Promoting diversity and inclusion initiatives
• Implementing health management programs

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: ISO 14001, FSSC 22000

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

• Environmental
• Social
• Governance

Environmental Achievements

• Reduced CO2 emissions (Scope 1, 2) through switching from heavy oil to gas as a fuel source

Social Achievements

• Increased rate of women in management positions to 73.8%
• Donated milk and yogurt to public health centers and hotels housing people with minor symptoms in Sapporo, and to Hokkaido universities through the Hokkaido Youth Support Project
• Implemented work-from-home program and provided necessary IT equipment

Governance Achievements

• Established a COVID-19 Response Headquarters to address the pandemic's impact

Climate Goals & Targets

Environmental Challenges

• Slight increase in overtime work due to supply/demand adjustments from COVID-19 impact and new plant lines
• Decline in paid leave acquisition rate due to pandemic restrictions
• Decline in waste product recycling rate due to plant closure
• Decrease in demand for milk for school meals due to school closures
• Lower demand for raw materials and commercial products from restaurants, hotels and souvenir shops

Mitigation Strategies

• Working to improve labor productivity through operation reforms
• Stabilizing plant operations and switching to gas fuel to reduce CO2 emissions
• Increasing production of dairy products to avoid milk disposal due to school closures
• Implementing workstyle reforms such as work-at-home and remote meetings

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Food sustainability
• Climate change
• Reducing environmental impact
• Human capital
• Diversity and Inclusion
• Contributing to local communities

Environmental Achievements

• Reduced CO2 emissions by 17,000 t-CO2 compared to fiscal 2021
• Converted boiler system at Taiki Plant from heavy oil to LNG, reducing annual CO2 emissions by approximately 7,800 metric tons
• Installed photovoltaic system at Ebina Plant, reducing annual CO2 emissions by approximately 123 metric tons
• Improved food waste recycling rate
• Achieved waste recycling rate target of 98.8%

Social Achievements

• Recognized as a 2023 Certified Health & Productivity Management Outstanding Organization
• Increased annual paid leave acquisition rate to 80%
• Introduced Postpartum Partner Leave policy
• Implemented career development programs for female leaders
• Donated products to food banks and food pantries

Governance Achievements

• Established Agro Snow, a joint venture with Agrocorp, to enter the plant-based food market
• Opened Megmilk Snow Brand Innovation Center to drive innovation
• Established Milk Nutrition Research Course with Hirosaki University
• Revised Megmilk Snow Brand Code of Conduct
• Established a system to properly respond to whistleblowing

Climate Goals & Targets

Environmental Challenges

• Sharp rise in feedstuff and energy costs impacting dairy farming
• Global protein supply-demand imbalance
• Increasing scrutiny on the environmental impact of dairy farming
• Rising costs of raw materials and energy
• Logistics environment challenges due to driver shortage and stricter regulations

Mitigation Strategies

• Implemented price adjustments and changed product sizes to absorb costs
• Focused on building a foundation for raw milk production
• Entered the PBF market and enhanced overseas expansion
• Promoting efficient efforts to realize sustainable logistics, including joint delivery with other companies
• Introduced a new 28-day paid leave policy, Postpartum Partner Leave

Supply Chain Management

Responsible Procurement

• Sustainable procurement practices
• Dialogue with small-scale palm farmers in Indonesia
• Procurement of certified palm oil

Climate-Related Risks & Opportunities

Physical Risks

• Increasing average temperature
• Increase in frequency and severity of extreme weather events
• Insufficient water resources

Transition Risks

• Changes in consumer awareness
• Increase in manufacturing and transportation costs due to carbon tax

Opportunities

• Development of energy-efficient products
• Expansion of renewable energy use

Reporting Standards

Frameworks Used: International Integrated Reporting Framework by the IIRC, GRI Standards, ISO 26000

Certifications: FSSC 22000, Halal

UN Sustainable Development Goals

• Goal 2: Zero Hunger
• Goal 3: Good Health and Well-being
• Goal 7: Affordable and Clean Energy
• Goal 12: Responsible Consumption and Production
• Goal 13: Climate Action

Initiatives contribute to these goals through sustainable food production, health promotion, renewable energy use, waste reduction, and climate change mitigation

Sustainable Products & Innovation

• Plant-based foods
• Products with extended expiration dates
• Products using biomass plastic straws

Awards & Recognition

• Good Career Company Award 2022 Grand Prize
• Megmilk Snow Brand SDGs Action Awards

Environmental Metrics

ESG Focus Areas

• Sustainable food provision
• Contribution to health through food
• Contribution to sustainable dairy farming
• Environmental impact reduction
• Diversity and human rights promotion
• Contribution to local communities
• Compliance and corporate ethics

Environmental Achievements

• Reduce CO2 emissions to 50% by FY2030 (compared to FY2013)
• Reduce petroleum-derived plastic volume by 25% by FY2030 (compared to FY2018)
• Adoption of straw-less milk packs for school lunch programs
• Construction of solar power plant in Ebina (1,590kw total capacity across 3 sites by FY2024)

Social Achievements

• Annual human rights due diligence and enlightenment activities
• Work to identify, prevent, and reduce human rights risks caused by business activities
• Visit local sites and engage in dialogue to confirm human rights issues affecting small-scale palm farmers

Governance Achievements

• Participation in the TNFD Forum (March 2024), planning full disclosure in Fall 2025

Climate Goals & Targets

Supply Chain Management

Climate-Related Risks & Opportunities