Climate Change Data

Environmental Metrics

ESG Focus Areas

• Sustainability
• Diversity & Inclusion
• Circular Economy

Environmental Achievements

• Launched "ヒトツブカンロ earth" sustainable product line using off-spec candies to create wet tissues.
• Established a Sustainability Committee (April 1, 2022) to promote SDGs and enhance sustainability efforts.

Social Achievements

• Selected for the Ministry of Economy, Trade and Industry's "New Diversity Management Companies 100" (2021).
• Received the "Kurumin" certification (2021) and a three-star rating (2021) for promoting women's empowerment and supporting next-generation development.
• Selected for the Ministry of Internal Affairs and Communications' "Telework Pioneer 100" (2021).
• Certified as a "Management Excellent Corporation 2022" by the Ministry of Economy, Trade and Industry (2022).

Governance Achievements

• Established a Sustainability Committee (April 1, 2022) to oversee ESG initiatives and promote SDGs.

Climate Goals & Targets

Environmental Challenges

• Rising raw material, energy, and logistics costs.

Mitigation Strategies

• Implemented price increases (3-10%) for candies and gummies to offset rising costs.
• Production efficiency improvements and cost reduction efforts.

Supply Chain Management

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

• "ヒトツブカンロ earth" sustainable product line

Awards & Recognition

• Ministry of Economy, Trade and Industry's "New Diversity Management Companies 100" (2021)
• "Kurumin" certification (2021)
• Three-star rating for women's empowerment (2021)
• Ministry of Internal Affairs and Communications' "Telework Pioneer 100" (2021)
• "Management Excellent Corporation 2022" (2022)

Environmental Metrics

ESG Focus Areas

• Green energy
• Waste reduction
• Health management

Environmental Achievements

• Switched to 100% CO2-free electricity at Matsumoto/Asahi factories (2022)
• Started upcycling waste packaging in collaboration with Paper Parade
• Expanding solar power generation at Matsumoto factory's new gummy building (2024)

Social Achievements

• Certified as a Health Management Excellent Company 2023 (two consecutive years)
• Z-generation candy co-creation project resulting in new product "Transparent Heart"
• Launched new products in China via social media

Governance Achievements

• Published "Annual Report 2022 (English)" and "Integrated Report 2023", winning multiple awards including Gold in 5 categories and World's Best in 2 categories at the ARC Awards 2023
• Proactive information disclosure to promote constructive dialogue with investors
• ROIC management implemented

Climate Goals & Targets

Environmental Challenges

• Young people's declining consumption of candy
• Maintaining top market share in the candy market

Mitigation Strategies

• Z-generation candy co-creation project
• Production capacity increase for gummies
• Expansion into new business areas and channels

Supply Chain Management

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

• Upcycled waste packaging products

Awards & Recognition

• ARC Awards 2023 (Gold in 5 categories, World's Best in 2 categories)

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance
• Sustainability
• SDGs

Environmental Achievements

• Reduced CO2 emissions (scope 1 to 3) per unit of net sales from 308.6 t/¥100 million in 2019 to 262.4 t/¥100 million in 2020 (target: 216.0 t/¥100 million in 2024)
• Reduction of food waste (per unit of net sales) from 4.63 t/¥100 million in 2019 to 4.12 t/¥100 million in 2020 (target: 3.24 t/¥100 million in 2024)
• Initiatives to switch product packaging materials to eco-friendly materials
• Downsizing of product packaging to reduce use of packaging materials
• Extension of best-before dates by reviewing selection of raw materials and composition
• Recycling, upcycling and reusing
• Recycling program through HITOTUBU KANRO stores
• Reduction of energy consumption, study on introduction of clean energy

Social Achievements

• Launched education-focused CSR programs (2017)
• Strengthened activities to support sports (2020)
• Launched the “Candy-yell” project (2020)
• Established Diversity & Inclusion Office (2018), selected for the “New Diversity Management Selection 100” in FY2020
• Opened “Kanro Farm,” an indoor herb garden (2020)
• Activities to provide education on the value of sugar (target: 8 million people in 2024, 15 million in 2030)
• Develop human rights policy
• Raise the rates of women in management and employment of persons with disabilities
• Promote understanding of LGBTQ issues and create a climate that is free from bias
• Provide an environment that encourages use of childcare and nursing care leaves
• Promote smart factories for a comfortable working environment at production plants
• Facilitate use of satellite offices and external co-working spaces, expand the scope of teleworking
• Examine introduction of a “workcation” system

Governance Achievements

• Established the “Governance Committee” (2018)
• Enhanced the Board of Directors (performed evaluation of the effectiveness of the Board of Directors, conducted strategy discussions, increased the number of Board meetings)
• Practicing ROIC management
• Formulated and introduced investment profitability criterion based on cost of capital
• Reduced strategic shareholdings
• Established IR Office (2019)
• Enhance BCP against disasters and spread of infectious diseases
• Strengthen cyber security measures
• Enhance information disclosure (disclosure of non-financial information including disclosure in line with TCFD recommendations, sustainability promotion structure, risk management structure)

Climate Goals & Targets

Environmental Challenges

• Impact of COVID-19 on net sales and ordinary income (2020, 2021)
• Surge in raw materials and crude oil prices
• Negative image associated with carbohydrates and calorie intake
• Lifestyle changes due to COVID-19
• Declining birthrate and aging society/declining population

Mitigation Strategies

• Continuous implementation of cost reduction measures
• Investment in innovation and R&D
• Development of plant-based products and low-calorie options
• Data-driven digital marketing
• Expansion of business domains (digital commerce, global, future design)

Supply Chain Management

Responsible Procurement

• Ensure stable procurement of sustainable raw materials

Climate-Related Risks & Opportunities

Physical Risks

• Climate change (concerns over raw materials procurement)

Transition Risks

• Changes in consumer lifestyle
• Surge in raw materials and crude oil prices

Opportunities

• Development of energy-efficient products
• Development of plant-based products

Reporting Standards

Frameworks Used: TCFD

Certifications: FSSC 22000

Sustainable Products & Innovation

• HITOTUBU KANRO earth
• Plant-based products
• Low-calorie options

Awards & Recognition

• Grand Award in 2 categories of the “International ARC Awards 2021”

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Switched all three company factories to renewable energy.

Social Achievements

• Increased the number of people reached by activities promoting correct knowledge about sugar to 9.39 million.
• Implemented human rights policy.

Governance Achievements

• Established a Sustainability Committee.
• Implemented KanROIC tree for company-wide KPI management and ROIC management.

Climate Goals & Targets

Environmental Challenges

• Increased CO2 emissions due to increased production, sales, and capital expenditure.
• Need to specify and implement measures for reducing environmental burden.
• Need to conduct human rights due diligence.

Mitigation Strategies

• Implementing measures to reduce environmental burden.
• Conducting human rights due diligence.
• Investing in ESG initiatives to reduce greenhouse gas emissions.
• Expanding the use of recycled plastics to reduce waste plastic.

Supply Chain Management

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

• Sustainable products under the "Hitotsubu Kanro earth" brand