House Foods Group Inc.
Climate Impact & Sustainability Data (2008-04 to 2009-03, 2011-04 to 2012-03, 2016-04-01 to 2017-03-31, 2017-04 to 2018-03, 2017-04-01 to 2018-03-31, 2018, 2018-04 to 2019-03, 2022-04 to 2023-03)
Reporting Period: 2008-04 to 2009-03
Environmental Metrics
ESG Focus Areas
- Compliance
- Safety and Quality
- Environmental Consideration
- Social Contribution Activities through Food
- Employee Support
Environmental Achievements
- CO2 emissions reduced by 15.7% compared to 1990 levels (3-year target)
- 99% recycling rate maintained
- Final disposal rate reduced by 0.02% compared to 2007
- Fuel conversion from LPG and heavy oil to gas in major factories completed
Social Achievements
- Launched "Spice College" for food retailers and customers (128 sessions, 3632 participants)
- Developed and implemented a new method for detecting shrimp and crab allergens, adopted as a national testing method
- Participated in the Ministry of Agriculture, Forestry and Fisheries' "Food Education Advanced Model Demonstration Project"
- Supported the "Children's Yamakasa Workshop"
Governance Achievements
- Established a CSR Promotion Office in April 2008
- Implemented a new internal control system to ensure the reliability of financial reporting
- Established a group-wide compliance system based on the "House Foods Group Compliance Code of Conduct"
Climate Goals & Targets
- Reduce CO2 emissions by 15.7% compared to 1990 levels within 3 years
Environmental Challenges
- Increased waste due to increased product variety changes
- Maintaining customer trust in the face of food safety incidents
- Globalization challenges
Mitigation Strategies
- Developed a unique waste reduction method and device, achieving nearly 99% volume reduction (patent pending)
- Strengthened quality assurance systems and established a new structure
- Improved communication with stakeholders and addressed customer concerns promptly
Supply Chain Management
Supplier Audits: 529 suppliers audited, 510 met company standards
Responsible Procurement
- Green procurement guidelines
- Collaboration with suppliers on quality improvement and defect prevention
Climate-Related Risks & Opportunities
Reporting Standards
Frameworks Used: GRI Sustainability Reporting Guidelines 2006, Ministry of the Environment's Environmental Reporting Guidelines (2007 edition)
Certifications: ISO 14001
Sustainable Products & Innovation
- Environmentally friendly packaging
- Products using locally sourced ingredients
Awards & Recognition
- Kanto Bureau of Economy, Trade and Industry Director's Award for energy management achievements
Reporting Period: 2011-04 to 2012-03
Environmental Metrics
ESG Focus Areas
- Customer Satisfaction
- Quality Assurance
- Environmental Sustainability
- Corporate Governance
- Compliance
- Social Contribution
- Human Resources
Environmental Achievements
- Reduced CO2 emissions by 3% in factories (compared to 2010)
- Reduced CO2 emissions by 8% in logistics (compared to 2010)
- Achieved 33.5% modal shift (slightly below the 34% target)
- Various initiatives in packaging reduction and recycling (e.g., thinner trays, smaller packages, recycled materials)
- ISO 14001 certification obtained by multiple group companies
Social Achievements
- Implemented various initiatives to improve employee well-being and work-life balance (e.g., self-care workshops, childcare support, flexible work arrangements)
- Conducted “Hajimete Cooking” classes for children since 1996, and “Spice College” since 2006, reaching approximately 25,000 participants by 2011.
- Established grievance mechanisms (helpline)
Governance Achievements
- Established a robust corporate governance structure, including a board of directors and audit committee.
- Implemented a comprehensive compliance program, including training, self-checks, and a helpline.
- No compliance violations were reported in 2011.
Climate Goals & Targets
- Not disclosed
- Reduce CO2 emissions by 3.5% (compared to 2011)
- Reduce waste by 12.1% (compared to 2011)
- Achieve 88.8% recycling rate
- Reduce office waste by 20% (compared to 2008)
Environmental Challenges
- Increased waste in factories due to improved quality control (2011)
- Increased waste due to the Great East Japan Earthquake (2011)
- Modal shift target not fully achieved (2011)
Mitigation Strategies
- Continuous improvement efforts in waste reduction and recycling across factories and offices.
- Improved waste management practices.
- Continued efforts to improve modal shift rate.
Supply Chain Management
Supplier Audits: Not disclosed
Responsible Procurement
- Green procurement guidelines
- Strict criteria for selecting raw materials (safety, hygiene, sustainability)
Climate-Related Risks & Opportunities
Physical Risks
- Not disclosed
Transition Risks
- Not disclosed
Opportunities
- Not disclosed
Reporting Standards
Frameworks Used: GRI G3, Japanese Ministry of the Environment's Environmental Reporting Guidelines (2012)
Certifications: ISO 14001 (multiple group companies)
Third-party Assurance: Not disclosed
UN Sustainable Development Goals
- Not disclosed
Not disclosed
Sustainable Products & Innovation
- Various initiatives in packaging reduction and recycling (e.g., thinner trays, smaller packages, recycled materials)
- Products designed for energy-efficient cooking
Awards & Recognition
- Economic Industry Minister's Award (2011, Japan Packaging Contest)
- WorldStar Award (2011, World Packaging Organisation)
Reporting Period: 2016-04-01 to 2017-03-31
Environmental Metrics
ESG Focus Areas
- Safety and security of products and services
- Employee well-being and diversity
- Environmental sustainability
- Community engagement
- Corporate governance
Environmental Achievements
- Developed earth-friendly bottles using biomass materials, reducing petroleum-derived resin use.
- Eliminated shrink labels, reducing film usage by approximately 13 tons annually.
- Enabled microwave cooking for certain curry products, reducing CO2 emissions by about 80%.
Social Achievements
- Established a dedicated Human Resources Development Department to promote diversity and inclusion.
- Launched a "Career Design Management Learning Session" for supervisors and female employees to foster mutual understanding and career development.
- Started donating products to the Second Harvest Japan food bank.
Governance Achievements
- Increased the number of outside directors to two in 2016.
- Established a Remuneration Advisory Committee in 2017.
Climate Goals & Targets
- Reduce CO2 emissions by 24.9%, waste by 16.5%, and water usage by 8.5% by 2030 (compared to 2013 levels).
Environmental Challenges
- Increasing CO2 emissions and water usage due to increased production volume.
- Need to further improve diversity and inclusion initiatives.
- Addressing challenges in the logistics environment, including truck driver shortages and rising costs.
Mitigation Strategies
- Setting long-term environmental goals for 2030 to reduce CO2 emissions, waste, and water usage.
- Implementing various initiatives to create a more inclusive and supportive workplace.
- Establishing joint ventures for logistics in Hokkaido and Kyushu areas to improve efficiency and sustainability.
Supply Chain Management
Responsible Procurement
- Fair and ethical sourcing practices
- Collaboration with suppliers on sustainability initiatives
Climate-Related Risks & Opportunities
Reporting Standards
Frameworks Used: GRI, ISO 26000
Certifications: ISO 14001
UN Sustainable Development Goals
- Goal 2: Zero Hunger
- Goal 3: Good Health and Well-being
- Goal 5: Gender Equality
- Goal 8: Decent Work and Economic Growth
- Goal 12: Responsible Consumption and Production
- Goal 13: Climate Action
The report highlights how various initiatives contribute to these SDGs.
Sustainable Products & Innovation
- Earth-friendly bottles
- Microwaveable curry pouches
Reporting Period: 2017-04 to 2018-03
Environmental Metrics
ESG Focus Areas
- Environmental
- Social
- Governance
Environmental Achievements
- CO2 emissions intensity reduction target of -25% by FY2030 (compared to 2013 levels)
- Waste reduction intensity target of -16.5% by FY2030 (compared to 2013 levels)
- Water consumption intensity reduction target of -8.5% by FY2030 (compared to 2013 levels)
- Product waste reduction rate of 46% in FY2017 (compared to FY2013 levels)
- Recycling rate of 95.5% in FY2017
Social Achievements
- Launched House Way activities to promote shared values and employee development
- Implemented various initiatives for a society of healthy longevity, including dietary education and health solutions
- Implemented work style reforms to improve productivity and promote diversity
- Initiatives for family ties, including workplace visits by families
Governance Achievements
- Shifted to a holding company structure in 2013
- Established the House Foods Group Innovation Fund in 2017 to collaborate with external companies
- Established an organ for the promotion of work style reforms with participation from 14 domestic companies
Climate Goals & Targets
- CO2 emissions intensity reduction target of -25% by FY2030
- Waste reduction intensity target of -16.5% by FY2030
- Water consumption intensity reduction target of -8.5% by FY2030
Environmental Challenges
- Maturation of the domestic market
- Increasing uncertainty of the international situation
- Decrease in the productive population in Japan
- Increase in burdens related to childcare and nursing care
- Requirement to correct long working hours
- Mobility of human resources
- Food loss in Japan (6.46 million tons per year)
Mitigation Strategies
- Set long-term environmental goals for CO2 emissions, waste, and water consumption by FY2030
- Implemented work style reforms, including expansion of flextime, teleworking, and objective management of working hours
- Initiatives to reduce food loss, including improved demand forecasting and reuse of food waste
- Donation of products to food banks
- Promoting sustainable procurement, including sustainable palm oil and paper resources
Supply Chain Management
Responsible Procurement
- Sustainable palm oil procurement
- Use of FSC®-certified paper
- Regular visits to spice suppliers
Climate-Related Risks & Opportunities
Reporting Standards
Frameworks Used: GRI’s Sustainability Reporting Standards, ISO 26000
Certifications: ISO 14001:2015
UN Sustainable Development Goals
- Goal 2: Zero Hunger
- Goal 3: Good Health and Well-being
- Goal 5: Gender Equality
- Goal 8: Decent Work and Economic Growth
- Goal 12: Responsible Production and Consumption
- Goal 13: Climate Action
The company's initiatives contribute to these goals through its food business, environmental efforts, and commitment to diversity and inclusion.
Sustainable Products & Innovation
- Tokutei Genzairyo 7 Hinmoku Fushiyou Series (products without seven specific ingredients)
- Yosan-mai (folic acid rice)
Awards & Recognition
- Award of encouragement in the 26th Food Safety, Security and Environment Contribution Award (Malony Co., Ltd.)
Reporting Period: 2017-04-01 to 2018-03-31
Environmental Metrics
ESG Focus Areas
- Environmental
- Social
- Governance
Environmental Achievements
- Reduced CO2 emissions by -25% (2030 target, compared to 2013)
- Reduced waste by -16.5% (2030 target, compared to 2013)
- Achieved 95.5% recycling rate in 2017
Social Achievements
- Launched "House Food and Agriculture and Environment Experience Class" and "First Cooking" classes for food education
- Developed "Folic Acid Rice" in collaboration with Joshi Eiyo University
- Participated in the "Sakado City Folic Acid Project"
Governance Achievements
- Established the House Foods Group Innovation Fund
- Implemented QUIC (Quality Up by Initiative of Customers) program
- Established a working style reform promotion organization with 14 domestic companies
Climate Goals & Targets
- Not disclosed
- Reduce CO2 emissions by -25% by 2030 (compared to 2013)
- Reduce waste by -16.5% by 2030 (compared to 2013)
- Not disclosed
Environmental Challenges
- Climate change
- Waste reduction
- Sustainable procurement
- Decreasing working-age population
- Changes in employment environment and increasing social demands
Mitigation Strategies
- Set long-term environmental goals for CO2 emissions, waste, and water usage by 2030
- Focus on reducing food loss
- Promoting sustainable procurement of palm oil and paper resources
- Implementing working style reforms and attracting diverse talent
- Promoting diversity and inclusion
Supply Chain Management
Supplier Audits: Regular visits to spice suppliers
Responsible Procurement
- Sustainable palm oil sourcing
- FSC-certified paper usage
- Prioritizing sustainable spice production
Climate-Related Risks & Opportunities
Physical Risks
- Climate change
Transition Risks
- Not disclosed
Opportunities
- Not disclosed
Reporting Standards
Frameworks Used: GRI, ISO 26000
Certifications: ISO 14001
Third-party Assurance: Not disclosed
UN Sustainable Development Goals
- Goal 2: Zero Hunger
- Goal 3: Good Health and Well-being
- Goal 12: Responsible Consumption and Production
- Goal 13: Climate Action
Initiatives contribute to these goals through food education, health solutions, waste reduction, and environmental protection.
Sustainable Products & Innovation
- Not disclosed
Awards & Recognition
- Food Safety, Security, and Environmental Contribution Award (Encouragement Award)
Reporting Period: 2018
Environmental Metrics
ESG Focus Areas
- Environmental
- Social
- Governance
Environmental Achievements
- Reduced CO2 emissions per unit of production
- Reduced waste per unit of production
- Reduced water usage per unit of production
- 99%+ complete switch to FSC® certified paper (House Foods Corporation)
Social Achievements
- Recognized as a 2019 Certified Health and Productivity Management Organization (White 500)
- Launched Ajitsuki Curry Powder Vermont Curry Taste to address needs of dual-income households
- Initiated collaborative initiative on food allergies (Project A)
- Implemented workstyle reforms, including expansion of monthly planned work, introduction of teleworking, and reduction of prescribed working hours
- Increased number of male employees taking childcare leave
- Initiated “Professional Commendation System — the Greatness of the Frontline —”
Governance Achievements
- Abolished takeover defense measures
- Established the Compensation Advisory Committee
- Reviewed operation of Group quality assurance meetings and the Group CSR Committee
Climate Goals & Targets
- Achieve zero emissions
- Net sales ¥310.0 billion
- ATO 0.87 times
- ROS 7.1%
- Operating profit ¥22.0 billion
- ROA 6.2%
- ROE 5.4%
- CO2: 25% reduction (in Japan as compared to 2013)
- Waste: 16.5% reduction (in Japan as compared to 2013)
- Increase international exposure to 20% of net sales and 30% of operating profit by 2023
Environmental Challenges
- Mature market with growing tendency for people to eat out or buy ready-to-eat food
- Deceleration of consumption
- Tight production capacity in the US tofu market
- Rapid changes in distribution and consumption structures in China
- Excise tax revision in Thailand
- Difficult environment for the Restaurant Business (securing human resources, consumption tax increase)
- Labor shortages in the logistics industry
- Increasingly difficult environment for the Restaurant Business (securing human resources, increase in consumption tax)
- Rising prices of ingredients and mounting investment expenses in plant renewal in the Restaurant Business
- Social issue of food loss
- Reduction of plastic waste
Mitigation Strategies
- Reforming revenue structure model by growing retort pouched product business and increasing B to B businesses
- Establishing a new production line at the Kanto Plant
- Implementing GOT initiatives in procurement, production, and B to B
- Expanding production capacity in the US, China, and ASEAN
- Improving QSC (Quality, Service, Cleanliness) in the Restaurant Business
- Developing new menu items (spice curry, low-carb curry)
- Implementing promotions to increase restaurant visits
- Launching F-LINE Corporation for sustainable food logistics
- Changing best-before date display to year/month
- Considering extending best-before dates
- Developing environmental investment standards to achieve environmental targets for 2030
- Using plant factory vegetables to reduce water usage and waste
Supply Chain Management
Responsible Procurement
- Sustainable procurement-friendly raw materials
- FSC® certified paper
Climate-Related Risks & Opportunities
Sustainable Products & Innovation
- Short Time axis Long Cut-out curry bread (without seven specified allergenic items)
Awards & Recognition
- A ESG rating by MSCI INC.
- Inclusion in the MSCI Japan ESG Select Leaders Index
- Inclusion in the SNAM Sustainability Index for eight consecutive years
- Medal with Dark Blue Ribbon
Reporting Period: 2018-04 to 2019-03
Environmental Metrics
ESG Focus Areas
- Healthy Life Through Foods
- Environmental Sustainability
- Employee Well-being
- Social Responsibility
- Diversity and Inclusion
Environmental Achievements
- CO2 reduction target of 25% by 2030 (compared to 2013 levels)
- Waste reduction target of 16.5% by 2023 (compared to 2013 levels)
- Joined the Roundtable on Sustainable Palm Oil (RSPO)
- Working towards using FSC®-certified paper
Social Achievements
- Implementation of work style reforms (flextime, teleworking, objective working hour management)
- Initiatives to achieve diversity (greater participation by women, hiring persons with disabilities, personnel exchanges)
- Support for the Kodomo Shokudo (Children’s Cafeteria) Project
Governance Achievements
- Establishment of environmental investment standards based on independent carbon pricing
- Implementation of 'One Day a Week' initiative for R&D
- Launch of Ba EXPO for information sharing and new business creation
- Establishment of the House Foods Group Innovation Fund (CVC)
Climate Goals & Targets
- CO2 reduction target of 25% by 2030 (compared to 2013 levels)
- Waste reduction target of 16.5% by 2023 (compared to 2013 levels)
Environmental Challenges
- Need for significant progress on replacing production facilities with more environmentally friendly ones
- Addressing issues such as eating meals alone and poverty
- Information sharing among expanding Group companies
- Maintaining current core businesses in a changing market
Mitigation Strategies
- Established environmental investment standards and approach to step up capital investments in environment-related facilities
- Exploring approaches to address eating alone and poverty, including support for the Kodomo Shokudo Project
- Launched Ba EXPO as a platform for information sharing and new business creation
- Shifting strategic direction from “selection and concentration” to “becoming a high quality company” focusing on value chain and R&D
Supply Chain Management
Responsible Procurement
- Sustainable palm oil procurement
- FSC®-certified paper usage
Climate-Related Risks & Opportunities
Reporting Standards
Frameworks Used: GRI’s Sustainability Reporting Standards, ISO 26000, Environmental Reporting Guidelines 2012 by the Ministry of the Environment, Japan
UN Sustainable Development Goals
- Goal 2 Zero Hunger
- Goal 3 Good Health and Well-being
- Goal 5 Gender Equality
- Goal 8 Decent Work and Economic Growth
- Goal 12 Responsible Consumption and Production
- Goal 13 Climate Action
The report mentions the company's aim to contribute to the SDGs through its three responsibilities and initiatives.
Reporting Period: 2022-04 to 2023-03
Environmental Metrics
ESG Focus Areas
- Climate change
- Resource recycling
Environmental Achievements
- Began operating the “Total Energy Services for Multiple Sites” in April 2024, reducing CO2 emissions by 16% at target sites compared to FY2022.
- Reduced CO2 emissions by 16% in total volume compared to the baseline year (FY2013).
Social Achievements
- Launched a project entitled “C-vitt, Together to Create Health and Happiness for Thai Children” in 2022.
- Introduced a self-check support program for employees in Japan in October 2020 to balance work and care provision.
Governance Achievements
- Transitioned from a Group with a Board of Auditors to a Group with an Audit & Supervisory Committee in June 2021.
- Introduced an evaluation of the effectiveness of the Board of Directors in FY2022.
Climate Goals & Targets
- Achieve carbon neutrality by 2050 (Scopes 1 and 2).
- Reduce CO2 emissions by 38% in total volume compared to FY2013 by 2030.
- Achieve carbon neutrality by 2050 (Scopes 1 and 2).
- Reduce CO2 emissions by 27% in total volume compared to FY2013 by FY2026.
Environmental Challenges
- Soaring raw material costs due to the COVID-19 pandemic and the situation in Ukraine.
- Difficulty in communicating with operating companies with different business models.
- Overstocking issues.
- Challenges in expanding production capacity and customer contact points in Spice VCs.
- Challenges in coordinating business development, R&D, and human resource development in Value-added Vegetables VC.
Mitigation Strategies
- Implemented reforms to profit and loss structure and strengthened expansion in Southeast Asia in Functional Ingredients VC.
- Established House Foods Group Asia Pacific Co., Ltd. to allocate resources to growth areas.
- Welcomed Keystone Natural Holdings, LLC into the Group and expanded production capacity at House Foods America Corporation in Soybean VC.
- Established a “Spice VC Procurement and Production Strategic Headquarters” to unify procurement and production strategy functions.
- Established a “Spice VC New Value Creation Division” to enhance cooperation and improve upstream literacy.
- Promoting collaborative creation efforts across the entire Soybean VC and focusing on synergies.
- Working with collaborative creation partners to create new value in Value-added Vegetables VC.
Supply Chain Management
Supplier Audits: 82% coverage based on procurement amount in FY2023
Responsible Procurement
- Sedex membership
- RSPO certification for palm oil
Climate-Related Risks & Opportunities
Physical Risks
- Extreme weather events
Transition Risks
- Regulatory changes, market shifts
Opportunities
- Development of energy-efficient products
Reporting Standards
Frameworks Used: IFRS Foundation’s “The Integrated Reporting Framework”,, Ministry of Economy, Trade and Industry’s “Guidance for Integrated Corporate Disclosure and Company-investor Dialogues for Collaborative Value Creation”
Sustainable Products & Innovation
- New roux packaging in Indonesia without plastic tray
- Vermont Curry tray with plant-derived materials
Awards & Recognition
- JSBBA Award for Achievement in Technological Research (March 2024)