Climate Change Data

MORINAGA MILK INDUSTRY CO., LTD.

Climate Impact & Sustainability Data (2019-04 to 2020-03, 2020, 2021-04 to 2022-03, 2022, 2023-04-01 to 2024-03-31)

Reporting Period: 2019-04 to 2020-03

Environmental Metrics

Total Carbon Emissions:359,000 tCO2e/year (FY2019)
Scope 1 Emissions:208,000 tCO2e/year (FY2019)
Scope 2 Emissions:151,000 tCO2e/year (FY2019)
Scope 3 Emissions:2,333,000 tCO2e/year (FY2019)
Total Energy Consumption:1,482,605 MWh/year (FY2019)
Water Consumption:17,399,000 m3/year (FY2019)
Waste Generated:46,000 tons/year (FY2019)

ESG Focus Areas

  • Health and Nutrition
  • The Environment
  • Human Rights
  • Supply Chains
  • Nurturing the Next Generation
  • Human Resource Development
  • Corporate Governance

Environmental Achievements

  • Reduced CO2 emissions intensity by 12.6% compared to FY 2013.
  • Reduced food waste generation intensity by 23.9% compared to FY 2013.
  • Reduced industrial waste emissions intensity by 29.3% compared to FY 2013.
  • Reduced weight of plastic containers and packaging by 15.9% compared to FY 2013.

Social Achievements

  • Launched Triple Yogurt and expanded Milk Life series.
  • Provided Bifidobacterium breve M-16V to over 140 facilities in Japan and overseas.
  • Implemented various initiatives to support female workers, including training programs and childcare support.
  • Established an LGBT help line.

Governance Achievements

  • Established the Internal Control Committee with four subcommittees.
  • Implemented compliance training for all employees.
  • Established the Morinaga Milk Helpline for reporting compliance issues.

Climate Goals & Targets

Long-term Goals:
  • Reduce CO2 emissions intensity by 80% compared to FY 2013 by FY 2050.
Medium-term Goals:
  • Reduce CO2 emissions intensity by 20% compared to FY 2013 by FY 2030.
  • Eliminate landfill waste by FY 2030.
  • Achieve ISO 14001 certification at all offices of consolidated companies by 2030.
  • Handle calls from a total of 1 million people by FY 2020 (Angel 110 Hotline).
Short-term Goals:
  • Reduce CO2 emissions intensity by 8% compared to FY 2013 by FY 2021.
  • Reduce food waste generation intensity by 30% compared to FY 2013 by FY 2021.
  • Reduce industrial waste emissions intensity by 33% compared to FY 2013 by FY 2021.
  • Reduce landfill waste to less than 300t by FY 2021.
  • Reduce amount of water used by 9% compared to FY 2013 by FY 2021.
  • Calculate 6 of 15 categories of Scope 3 emissions by FY 2021.
  • Reduce weight of plastic packaging by 10% compared to FY 2013 by FY 2021.

Environmental Challenges

  • Climate change impacts on raw agricultural products and manufacturing.
  • Environmental pollution from plastic packaging.
  • Human rights issues in the supply chain (especially palm oil production).
  • Shortage of dairy ingredients in the future.
Mitigation Strategies
  • Promoting the purchase of RSPO-certified palm oil and Rainforest Alliance-certified coffee beans and tea leaves.
  • Developing new dairy ingredients.
  • Implementing the 3Rs (reduce, reuse, recycle) for packaging.
  • Improving wastewater treatment technologies.
  • Implementing human rights due diligence.

Supply Chain Management

Supplier Audits: 23 factories in FY 2019

Responsible Procurement
  • Morinaga Milk Group Procurement Policy
  • CSR procurement questionnaires
  • Quality improvement seminars
  • Quality audits at suppliers’ plants
  • Purchasing RSPO-certified palm oil and Rainforest Alliance-certified coffee beans and tea leaves.

Climate-Related Risks & Opportunities

Physical Risks
  • Impacts of weather disasters on manufacturing and distribution.
Transition Risks
  • Changes in customer preferences
  • Strengthened regulations
Opportunities
  • Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI Standards, SASB Standards, UN Global Compact

Certifications: ISO 14001, FSSC 22000

Third-party Assurance: Lloyd’s Register

Sustainable Products & Innovation

  • Long-life products (Morinaga TOFU series)
  • Products using RSPO-certified palm oil, Rainforest Alliance-certified coffee beans and tea leaves, and FSC-certified paper.

Awards & Recognition

  • Various awards for products, research activities, and social contribution activities (detailed in the report).

Reporting Period: 2020

Environmental Metrics

Total Carbon Emissions:319,000 t-CO₂e
Scope 1 Emissions:186,000 t-CO₂e
Scope 2 Emissions:134,000 t-CO₂e
Scope 3 Emissions:2,319,300 kt-CO₂e (domestic)
Renewable Energy Share:Not disclosed
Total Energy Consumption:1,291,134 MWh
Water Consumption:17,668,000 m3
Waste Generated:42,000 tons
Carbon Intensity:Reduced year-over-year

ESG Focus Areas

  • Climate Change
  • Diversity & Inclusion
  • Corporate Governance
  • Supply Chain Management
  • Human Resource Development

Environmental Achievements

  • Reduced Scope 1 and 2 emissions by 16.3% on FY2013 basis
  • Reduced plastic packaging by 15.4% since FY2013
  • Reduced food waste generation intensity by 27.1% compared to FY 2013
  • Reduced industrial waste emissions intensity by 30.0% compared to FY 2013
  • Reduced water usage by 6.1% on FY2013 basis
  • Completed full switchover to Book and Claim for RSPO-certified palm oil

Social Achievements

  • Increased ratio of female managers to 4.9%
  • Increased ratio of paternity leave to 84.7%
  • Increased ratio of male employees taking childcare leave to 44.1%
  • Improved employee turnover rate to 2.6%
  • Implemented e-learning for all group employees on compliance and anti-corruption

Governance Achievements

  • Established a Sustainability Committee
  • Changed officer remuneration structure to 1:1 fixed to performance-based
  • Formulated an anti-corruption policy
  • Increased ratio of women on the board of directors to 15.4%

Climate Goals & Targets

Long-term Goals:
  • Reduce CO2 emissions intensity by 80% by FY 2050 (compared to FY 2013)
Medium-term Goals:
  • Reduce CO2 emissions intensity by 20% by FY 2030 (compared to FY 2013)
  • Complete elimination of landfill waste by FY 2030
  • Ensure all consolidated company sites have ISO 14001 certification by FY 2030
  • Understand Scope 1 and Scope 2 emissions for the entire Group by FY 2021
Short-term Goals:
  • Reduce CO2 emissions intensity by 8% by FY 2021 (compared to FY 2013)
  • Reduce food waste generation intensity by 30% by FY 2021 (compared to FY 2013)
  • Reduce industrial waste emissions intensity by 33% by FY 2021 (compared to FY 2013)
  • Reduce annual landfill waste emissions to less than 300t by FY 2021
  • Reduce amount of water used by 9% by FY 2021 (compared to FY 2013)

Environmental Challenges

  • Supply chain disruptions due to COVID-19 impacting audits and onsite visits
  • Reducing Scope 3 emissions
Mitigation Strategies
  • Implemented remote audit procedures
  • Developed online training programs
  • Calculated ten of fifteen categories of Scope 3 emissions, with the remaining five either included in Scopes 1 and 2 or deemed low relevance

Supply Chain Management

Supplier Audits: 16 factories in FY 2020

Responsible Procurement
  • CSR procurement questionnaires
  • Multiple sourcing of raw materials
  • Geographically diverse purchasing
  • RSPO-certified palm oil

Climate-Related Risks & Opportunities

Physical Risks
  • Not disclosed
Transition Risks
  • Not disclosed
Opportunities
  • Not disclosed

Reporting Standards

Frameworks Used: ISO 14001, ISO 14064-1

Certifications: ISO 14001, FSSC 22000 (24 plants as of March 31, 2021)

Third-party Assurance: Third-party assurance for energy consumption and CO2 emissions (Scope 1, Scope 2)

UN Sustainable Development Goals

  • Not disclosed

Not disclosed

Sustainable Products & Innovation

  • Not disclosed

Awards & Recognition

  • Not disclosed

Reporting Period: 2021-04 to 2022-03

Environmental Metrics

Total Carbon Emissions:303433
Scope 1 Emissions:210912
Scope 2 Emissions:92521
Total Energy Consumption:1338132

ESG Focus Areas

  • Environmental

Climate Goals & Targets

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Period: 2022

Environmental Metrics

Total Carbon Emissions:2161.8 tCO2e (Scope 3)
Scope 1 Emissions:211 tCO2e
Scope 2 Emissions:93 tCO2e
Scope 3 Emissions:2161.8 tCO2e
Renewable Energy Share:Not disclosed
Total Energy Consumption:1,332,157 MWh
Water Consumption:17,179,000 m3
Waste Generated:41.6 tons
Carbon Intensity:Not disclosed

ESG Focus Areas

  • Food and Wellness
  • Resources and the Environment
  • People and Society

Environmental Achievements

  • Scope 1+2 CO₂ emissions reduction rate of 20.5% compared with FY2013
  • Reduction rate of plastic packaging of 15.2% compared with FY2013
  • Water resource usage reduction rate of 8.7% compared with FY2013
  • Development of MO-Lagoon® for Dairy, a manure processing system for dairy farms aiming to reduce methane emissions by as much as 30%

Social Achievements

  • Ratio of male employees who took childcare leave of 57.7%
  • Launched "Kobe Mimamori-tai" teams to support safety and security for senior residents of Kobe
  • Established a health seminar business for companies and local governments

Governance Achievements

  • Increased the number of external directors to four (independent external directors now hold over one-third of Board seats)
  • Established the Quality Assurance Committee
  • Raised the payout ratio target from 20% to 30%

Climate Goals & Targets

Long-term Goals:
  • Carbon neutrality by 2050
Medium-term Goals:
  • Scope 1 + Scope 2 CO₂ emissions reduction rate of 38% or higher compared with FY2013 (by FY2030)
  • Scope 3 GHG emissions reduction rate of 10% or higher compared with FY2020 (by FY2030)
  • Water resource usage reduction rate of 15% or higher compared with FY2013 (by FY2030)
  • Petroleum-derived virgin plastic usage reduction rate of 25% or higher compared with FY2013 (by FY2030)
  • 100% Acquisition of FSSC 22000 and other GFSI certification standards at all Group manufacturing sites (by FY2030)
  • Total 1 million participants in health promotion and nutrition education activities (by FY2030)
  • Ratio of female managers of 10% or higher (by FY2030)
  • 100% Childcare leave usage ratio (men) (by FY2030)
  • Total 100,000 participants in community activities at business sites (by FY2030)
Short-term Goals:
  • Scope 1 + Scope 2 CO₂ emissions reduction rate of 24% or higher compared with FY2013 (by FY2024)
  • Scope 3 GHG emissions reduction rate of 3% or higher compared with FY2020 (by FY2024)
  • Water resource usage reduction rate of 11% or higher compared with FY2013 (by FY2024)
  • Petroleum-derived virgin plastic usage reduction rate of 10% or higher compared with FY2013 (by FY2024)
  • Acquisition of FSSC 22000 and other GFSI certification standards at all domestic manufacturing sites (by FY2024)
  • Total 350,000 participants in health promotion and nutrition education activities (by FY2024)
  • Ratio of female managers of 6% or higher (by FY2024)
  • Human rights due diligence execution and measures; construction of continuity system (by FY2024)
  • Total 37,000 participants in community activities at business sites (by FY2024)

Environmental Challenges

  • Impact of COVID-19 pandemic
  • Rising raw material and energy costs
  • Shortage of dairy farmers in Japan
  • Lack of cattle feed in Japan
  • Environmental loads caused by dairy farming
  • High energy consumption in dairy product manufacturing
  • Supply chain disruptions due to geopolitical risks
Mitigation Strategies
  • Improving product mix and cost structure
  • Providing support to dairy farmers through information sharing and technical assistance
  • Developing MO-Lagoon® for Dairy to reduce environmental burdens from manure processing
  • Implementing measures to reduce energy consumption and CO2 emissions
  • Price adjustments for some products
  • Establishing the Procurement Division to ensure sustainable procurement
  • Developing closer collaboration among corporate units and building global supply chains

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement
  • Morinaga Milk Group Procurement Policy
  • Supplier guidelines
  • CSR procurement questionnaires

Climate-Related Risks & Opportunities

Physical Risks
  • Effects of weather (unseasonably low summer temperatures)
Transition Risks
  • Regulations or hearsay regarding uses of containers, packaging or fossil-fuel energy
  • Surging energy costs
Opportunities
  • Development of energy-efficient products and processes
  • Opportunities for growth investments in environmental measures

Reporting Standards

Frameworks Used: GRI Standard, SASB, TCFD, UNGC

Certifications: ISO 14001, FSSC 22000

Third-party Assurance: Third-party assurance received for energy consumption and CO₂ emissions (Scope 1 and Scope 2) for FY2019–FY2022.

UN Sustainable Development Goals

  • Not disclosed

Not disclosed

Sustainable Products & Innovation

  • Mt. RAINIER CAFFÈ LATTE Non-Sweet
  • MOW series
  • MORI-NU PLUS FORTIFIED TOFU
  • Products using biomass-based plastics

Awards & Recognition

  • Three-Star Superior Taste Award from the International Taste Institute (iTi) for MOW series

Reporting Period: 2023-04-01 to 2024-03-31

Environmental Metrics

Scope 1 Emissions:188,177 tCO2e/year
Scope 2 Emissions:88,781 tCO2e/year
Scope 3 Emissions:1,048.8 KtCO2e/year
Total Energy Consumption:1,237,035 MWh/year

ESG Focus Areas

  • Environmental

Climate Goals & Targets

Environmental Challenges

  • The Company should further demonstrate the accuracy and reliability of its future reports. This is particular to ensure effective internal verification processes at both the corporate head office and site levels.

Supply Chain Management

Climate-Related Risks & Opportunities