Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Installation of energy-efficient vending machines, reducing power consumption
• Effective use of tea leaves as fertilizer
• Recycling of beverage containers (cans and PET bottles)
• Implementation of solar power generation at the headquarters/Fukuyama branch

Social Achievements

• Operation of Fukuyama Art Salon
• Support for local sports organizations and Hiroshima Toyo Carp
• Development of healthcare products for the elderly and those with dysphagia

Governance Achievements

• Establishment of a Nomination and Remuneration Committee
• Implementation of director selection and remuneration policies
• Conduct of board effectiveness evaluation
• Introduction of a restricted stock unit (RSU) system

Climate Goals & Targets

Environmental Challenges

• Decreased sales in the vending machine retail business due to the COVID-19 pandemic and related economic slowdown
• Competition with convenience stores and declining sales of canned coffee
• High location fees
• Deterioration of working conditions
• Economic unfeasibility of some vending machines

Mitigation Strategies

• Cost structure reform, including revision of trading conditions and route efficiency improvement
• Strengthening ODM sales and building a stable and efficient production system in the beverage manufacturing business
• Rationalization of location fees
• Expansion of sales areas by increasing the number of vending machines
• M&A to improve operational efficiency and profitability
• Collaboration with independent operators

Supply Chain Management

Climate-Related Risks & Opportunities

UN Sustainable Development Goals

• Goal 7 (Affordable and clean energy)
• Goal 12 (Responsible consumption and production)
• Goal 13 (Climate action)
• Goal 3 (Good health and well-being)

Energy-efficient vending machines, tea leaf fertilizer, recycling, healthcare products

Sustainable Products & Innovation

• ASEED Funamachi Coffee
• ASEED Iced Tea
• ASEED Aster Chuhai
• Healthcare products

Environmental Metrics

ESG Focus Areas

• Governance
• Social
• Environmental

Environmental Achievements

• Implementing initiatives to reduce greenhouse gas emissions, including the introduction of environmentally friendly vehicles, high-efficiency equipment in the manufacturing process, solar power generation, and energy-saving building equipment.

Social Achievements

• Promoting work-style reforms to improve employee working environment and ensure stable workforce, including exceeding the legally mandated minimum level of paid leave and strictly managing overtime work.
• Promoting diversity by actively recruiting foreign nationals and career-changers with diverse backgrounds.
• Implementing a group-wide recruitment program to foster cross-group collaboration and career development.
• Actively promoting inter-group job changes to enhance employee job satisfaction and optimize personnel allocation.
• Expanding training programs and initiating reskilling initiatives for employees in their 40s and 50s.
• Strengthening measures against harassment through continuous awareness-raising and decisive responses to incidents.

Governance Achievements

• Transitioned to an Audit Committee Company to strengthen the board's supervisory functions.
• Established a Nomination and Remuneration Committee to enhance the independence and objectivity of the board's functions in nominating and determining remuneration for directors.
• Implemented a performance-based compensation system (RS) for directors (excluding audit committee members and outside directors).

Climate Goals & Targets

Environmental Challenges

• Reducing greenhouse gas emissions in the vending machine operation and beverage manufacturing businesses.
• Increasing the proportion of women in management positions (currently 5.6% of total employees).

Mitigation Strategies

• Implementing initiatives to reduce greenhouse gas emissions, including the introduction of environmentally friendly vehicles, high-efficiency equipment in the manufacturing process, solar power generation, and energy-saving building equipment.
• Gradually expanding job opportunities for women as the business diversifies and the organization grows, aiming to create a sustainable working environment that accommodates individual life plans.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: TCFD

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Reduced CO2 emissions through various initiatives including LED lighting transition (60% of total lighting in Aseed Brew Utsunomiya plant), installation of solar power generation equipment at Hojaku Beverage Shiwa plant (reducing CO2 by 129.36t from Jan to Sept 2022), and pasturizer updates resulting in approximately 10% fuel reduction.
• Effective utilization of tea dregs as fertilizer raw materials.
• Promoting the installation of energy-efficient vending machines.

Social Achievements

• Support for local sports organizations and Hiroshima Toyo Carp.
• Providing beverages to food banks.
• Establishment of a food loss vending machine.
• Development of healthcare products for the elderly and those with dysphagia.

Governance Achievements

• Establishment of a Nomination and Remuneration Committee (2021).
• Implementation of director selection and remuneration policies (2021).
• Introduction of a restricted stock unit plan (2021).
• Publication of an English version of the Aseed HD website (2022).
• Started using electronic voting platform (2022).

Climate Goals & Targets

Environmental Challenges

• Rising energy and raw material prices.
• 2024 problem (truck driver shortage).
• Competition in the vending machine market.

Mitigation Strategies

• Price adjustments for many products.
• Merger of two vending machine operating companies to reduce common costs.
• Strengthening of the alliance with other packers in the beverage manufacturing business.
• Considering in-house logistics operations to address the 2024 problem.
• M&A strategy to improve operational efficiency and profitability in the vending machine business.

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: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• 7 (Affordable and Clean Energy)
• 12 (Responsible Consumption and Production)
• 13 (Climate Action)
• 3 (Good Health and Well-being)

Initiatives such as energy-efficient vending machines, tea dregs utilization, solar power generation, and healthcare product development contribute to these goals.

Sustainable Products & Innovation

• Healthcare products for the elderly and those with dysphagia

Awards & Recognition

• Japan Food Selection Grand Prix (2023)

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Scope1,2のCO2排出量は2013年度比 22％削減
• 導入 of solar power generation equipment
• 設置 of vending machines for food loss countermeasures

Social Achievements

• Expansion of shareholder benefits program to include company products
• Strengthening of ODM business
• Improved logistics efficiency through in-house logistics

Governance Achievements

• Establishment of Nomination and Remuneration Committee (2021)
• Implementation of restricted stock compensation system (2021)
• Publication of English version of website (2022)

Climate Goals & Targets

Environmental Challenges

• Rising raw material, material, and fuel costs
• 2024 logistics issues
• Competition in the vending machine market

Mitigation Strategies

• Price revisions to address rising costs
• In-house logistics to address 2024 logistics issues
• M&A strategy to improve efficiency and profitability in the vending machine market

Supply Chain Management

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

• ASTERチューハイ
• 女王のノンアル
• 九州産ごぼう茶

Awards & Recognition

• 第61回ジャパンフードセレクション グランプリ（沖縄シークヮーサーのチューハイ）

Environmental Metrics

ESG Focus Areas

• Climate Change
• Workforce Diversity
• Governance

Environmental Achievements

• Installed solar panels on the roof of Aseed Brew Co., Ltd.'s Utsunomiya beverage factory to reduce CO2 emissions.
• Reduced water usage in production factories.
• Participation in "GREENSEA Seto Inland Hiroshima Platform" to address social issues with the local community.
• Reduced food waste in business companies.

Social Achievements

• Promoting the acquisition of childcare leave to create a more comfortable work environment.
• Implementing work style reforms and continuing to improve the work environment.
• Increased the number of new female employees through recruitment plans that identify the aptitude of each individual.
• Continuing to hold a management seminar to cultivate motivated personnel who will shoulder the future management.

Governance Achievements

• Established a Sustainability Committee composed of production and management department heads of major group companies.
• Established a Risk Management Committee and a Compliance Committee to review various risks and opportunities related to business execution annually.
• Implemented a transfer restriction stock compensation system (RS) in 2021.

Climate Goals & Targets

Environmental Challenges

• Rising raw material, energy, and labor costs.
• Changes in the business environment of the amusement industry (high sales share in vending machine retail business).
• Fluctuations in outsourced production volume in the beverage manufacturing business.
• Changing consumer values regarding alcohol consumption.
• Potential for major quality issues.
• Risks associated with overseas business activities.
• Securing and developing human resources.
• Risks associated with capital alliances and M&A.
• Potential for fixed asset impairment losses.
• Climate change-related risks (rising costs, lower consumer and investor ratings).
• Natural disaster risks.

Mitigation Strategies

• Appropriate price adjustments and improved productivity.
• Monitoring industry trends and strengthening sales to offices and factories.
• Strengthening ties with brand owners and enhancing added value.
• Providing health-conscious products and complying with alcohol-related laws.
• Investing in quality management and production improvements.
• Establishing a system for rapid response in overseas operations and collaborating with specialized agencies.
• Strengthening branding, promoting personnel exchange, and holding management seminars.
• Careful evaluation of investment targets and thorough due diligence in M&A.
• Regular evaluation of fixed asset profitability and development of utilization plans.
• Implementing energy-saving measures and reducing greenhouse gas emissions.
• Establishing a disaster response headquarters and building a support system within the group.

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• Natural disasters

Transition Risks

• Strengthening GHG emission regulations
• Increased consumer environmental awareness
• Increased financing costs

Opportunities

• Reduced power purchase costs through renewable energy adoption
• Increased demand for disaster preparedness products
• Increased demand for heatstroke prevention beverages

Reporting Standards

Frameworks Used: TCFD

Sustainable Products & Innovation

• SU:RESH (a black vinegar-based drink)
• New RTD cocktails and sugar-free sours using domestically produced fruits
• Disaster preparedness products

Environmental Metrics

ESG Focus Areas

• Governance
• Climate Change
• Human Capital

Environmental Achievements

• Set a target to reduce Scope1 and 2 emissions by 46% by 2030 (compared to 2013) and achieve NetZero by 2050.

Social Achievements

• Implementing work style reforms, aiming for an increase of 7 days of paid leave per year by 2027 and 5 additional annual holidays by 2030.
• Promoting diversity and inclusion, aiming for a 15% female management ratio by 2030. New graduate hiring has exceeded 50% female for the past three years.
• Group hiring since 2017 to connect different group companies and foster diverse career paths.

Governance Achievements

• Transitioned to an Audit Committee Company to strengthen the board's supervisory function.
• Established a Nomination and Remuneration Committee with a majority of independent outside directors.
• Implemented a restricted stock compensation plan (RS) in 2021 to incentivize long-term value creation.

Climate Goals & Targets

Environmental Challenges

• Low percentage of women in management positions (5%).
• Lack of foreign national managers.
• Setting reduction targets for Scope 3 emissions is under consideration.

Mitigation Strategies

• Actively promoting women's advancement and aiming for a 15% female management ratio by 2030.
• Focusing on career hiring to diversify talent and recruit individuals with global experience.
• Considering setting reduction targets for Scope 3 emissions.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: TCFD