HOKUTO Corporation
Climate Impact & Sustainability Data (2021, 2022-04-01 to 2022-06-30, 2023-04-01 to 2023-12-31)
Reporting Period: 2021
Environmental Metrics
ESG Focus Areas
- Climate Change
- Environmental Sustainability
- Health and Wellbeing
- Social Responsibility
- Community Engagement
- Employee Wellbeing
- Diversity and Inclusion
Environmental Achievements
- Reduced CO2 emissions through solar power generation (specific figures provided for several centers, totaling 2910t cumulative by FY2024)
- Reduced plastic use in mushroom packaging (specific figures provided, totaling 167t cumulative by FY2024)
- Stable reuse of mushroom cultivation culture media as compost and feed
Social Achievements
- Promoting healthy eating habits through 'KINKATSU through mushrooms' campaign
- Ensuring safety and reliability through GLOBAL G.A.P. certification and regular pesticide/heavy metal testing
- Providing food aid in disasters and supporting the UN World Food Programme
- Sports sponsorships and support for local culture and arts (e.g., Nagano Prefectural Cultural Hall)
- Promoting local employment at mushroom centers
- Supporting research and human resource development in bio-science through donations
Governance Achievements
- Initiatives for gender equality, including promoting paid leave and aiming for zero employees working over 45 hours of overtime per month
- Promoting the use of childcare leave by male employees
- Implementing career development initiatives to foster female managers
- Promoting diversity by recruiting and utilizing women, seniors, people with disabilities, and foreign nationals
- Working toward certification in the Health and Productivity Management Organization Recognition Program
Climate Goals & Targets
Environmental Challenges
- Reducing CO2 emissions and plastic use
- Realizing a circular society through resource reuse
- Promoting healthy lifestyles and addressing food problems
- Supporting regional revitalization and local economies
- Creating a workplace that makes employees happy
Mitigation Strategies
- Introducing solar power generation
- Reviewing mushroom packaging
- Recommending plastic reduction to suppliers
- Reusing mushroom cultivation culture media
- Promoting recycling activities
- Researching mushroom functionalities
- Advocating for 'KINKATSU through mushrooms'
- Providing factory tours and dietary education
- Maintaining GLOBAL G.A.P. certification
- Regular testing for pesticide residues and heavy metals
- Promoting single-serving size items
- Providing food aid
- Supporting the UN World Food Programme
- Providing functional packaging materials
- Sports sponsorship
- Supporting culture and arts
- Promoting local employment
- Donations to the HOKUTO Bio-science Promotion Foundation
- Supporting Pink Ribbon activities
- Initiatives for gender equality
- Promoting diversity
- Working toward Health and Productivity Management Organization Recognition Program certification
Supply Chain Management
Responsible Procurement
- Recommendations to suppliers to reduce plastics
Climate-Related Risks & Opportunities
Reporting Period: 2022-04-01 to 2022-06-30
Environmental Metrics
ESG Focus Areas
- Sustainability
- Renewable Energy
- Waste Management
- Health and Productivity Management
Environmental Achievements
- Signed an agreement for a comprehensive sustainability-linked loan to promote sustainability activities and expand solar-powered sites.
- Aiming to achieve cumulative sales of 2,000 million yen for environment-related materials over the next four years.
- Focusing on diversification and sophistication of culture media utilization (Bring about three new, used culture media applications).
Social Achievements
- Aiming to increase the number of subscribers to the mushroom fan site "kinokolabo"
- Aiming to obtain certification for an outstanding health and productivity management organization
Governance Achievements
- Signed an agreement for a comprehensive sustainability-linked loan with KPIs linked to loan terms and conditions.
Climate Goals & Targets
Medium-term Goals:
- Achieve cumulative sales of 2,000 million yen for environment-related materials over the next four years
Short-term Goals:
- Increase the Hokuto Group's global sales volume to 90,000 tons in FY 2025
- Increase the number of solar-powered sites to ten by the end of FY 2025
- Develop a new Bunashimeji strain with increased ornithine content by the end of FY 2025
Environmental Challenges
- Sluggish mushroom prices due to low vegetable market prices in Japan and outside Japan.
- Net sales fell short of the plan in some segments.
Mitigation Strategies
- Reduced expenses in some segments to slightly exceed operating profit plans.
- Sustainability-linked loan to fund improvements and expansion.
Supply Chain Management
Climate-Related Risks & Opportunities
Reporting Period: 2023-04-01 to 2023-12-31
Environmental Metrics
ESG Focus Areas
- Environmental
- Social
- Governance
Environmental Achievements
- Invested in Nagano Prefecture-issued Green Bonds as part of its ESG initiatives.
Climate Goals & Targets
Environmental Challenges
- Sluggishness in unit prices for mushrooms.
Mitigation Strategies
- Cost curtailment achieved through production volume adjustments.