Climate Change Data

Environmental Metrics

ESG Focus Areas

• Diversity and Inclusion
• Health and Well-being
• Community Development
• Sustainable Supply Chain
• Climate Change

Environmental Achievements

• Reduced CO2 emissions (specific figures not provided, but mentioned as 'extremely low' compared to industry)
• High food recycling rate (70-80% exceeding industry target of 50%)
• 100% beef tallow recycling at Yoshinoya outlets
• Switched to biomass plastic bags for takeout
• Acquired Eco Mark certification for Yoshinoya outlets

Social Achievements

• Launched cross-industry project #Eating Out is Power
• Provided meals to children's cafeterias
• Introduced Volunteer Special Paid Leave System
• Offered scholarship program for high school students
• Implemented quota system to increase women in management (25% in FY2021)

Governance Achievements

• Established Nomination Advisory Committee
• Established Remuneration Advisory Committee
• Improved internal control system
• Enhanced investor engagement
• Established Basic Sustainability Policy

Climate Goals & Targets

Environmental Challenges

• Impact of COVID-19 pandemic on business operations
• Soaring raw material prices
• Labor shortages
• Securing human resources
• Maintaining profitability
• Expanding overseas operations
• Climate change impacts on supply chain

Mitigation Strategies

• Implemented structural changes to improve cost efficiency
• Resumed growth investments
• Developed alternative sourcing strategies
• Developed new store models (C&C, R&E)
• Expanded takeout and delivery services
• Introduced automation and labor-saving technologies
• Strengthened collaboration with suppliers
• Focused investment in growth areas (China, Philippines, Indonesia, US)

Supply Chain Management

Supplier Audits: Annual inspections of factories to confirm compliance with human rights and labor standards

Responsible Procurement

• Maintaining stable supply, ensuring consistent quality, reducing purchase prices
• Hedging risks by purchasing from multiple suppliers
• Close collaboration with manufacturers
• Reducing food loss and industrial waste
• Improving logistics efficiency

Climate-Related Risks & Opportunities

Physical Risks

• Adverse impact on supply chain through more frequent and severe weather events

Transition Risks

• Increased procurement and energy costs resulting from resource depletion

Opportunities

• Differentiating ourselves and enhancing our brand image through environmental measures

Reporting Standards

Frameworks Used: International Integrated Reporting Framework (IIRC), ISO 26000

Certifications: ISO 14001 (Tokyo Plant and Yoshinoya's head office, sales departments, and outlets until 2019), Eco Mark (Yoshinoya outlets)

UN Sustainable Development Goals

• Goal 7 (Affordable and clean energy)
• Goal 8 (Decent work and economic growth)
• Goal 12 (Responsible consumption and production)
• Goal 13 (Climate action)

Initiatives contribute to these goals through various ESG efforts.

Sustainable Products & Innovation

• Frozen beef bowls
• Biomass plastic bags
• Menus made of LIMEX
• Salacia Beef
• Peptide Beef
• GABA Beef
• Dashi Supplement

Environmental Metrics

ESG Focus Areas

• Human resource training and career-building
• Diversity and inclusion
• Work-life balance
• Environmental impact reduction
• Sustainable supply chain
• Community development
• Health and well-being

Environmental Achievements

• Pilot project for voluntary collection and recycling of waste PET resin in the Kansai region.
• Reduced consumption of specified plastics by 15.8 kg/100 million yen.
• Food recycling rate of 83.7% at Yoshinoya outlets (exceeding the 50% target).

Social Achievements

• Launched Tokugyu Salacia Premium, the first food service operator to obtain FOSHU approval.
• Increased number of meals provided to children's cafeterias by 392 times.
• Regular health checkup rate among employees remained high at 89.1%.
• Subsidized the expense of cancer screening tests for employees.
• Share of women in management positions increased to 26.1%.
• Share of persons with disabilities (friend employees) increased to 5.06%.
• Number of training sessions conducted increased by 34 sessions.

Governance Achievements

• Implemented company-wide compliance training.
• Established a Corporate Culture Enhancement Committee to boost internal communication.
• Launched an internal mentor program to reduce workplace stress.
• Increased the number of outside directors to three out of six.

Climate Goals & Targets

Environmental Challenges

• Deteriorating cost environment due to soaring raw materials, utilities, labor, and logistics costs.
• COVID-19 pandemic impact on customer traffic, especially in China.
• Securing sufficient human resources due to a declining working population.
• Maintaining profitability in the face of rising costs.
• Slow recovery of Hanamaru and ramen noodle businesses.
• Maintaining customer numbers despite price revisions.

Mitigation Strategies

• Revised product prices to reflect rising costs.
• Accelerated conversion of Yoshinoya outlets to the C&C model.
• Introduced low-investment models for C&C conversions.
• Improved product value by strengthening sales of karaage fried chicken.
• Implemented digital innovations such as smartphone apps and tablet ordering.
• Closed unprofitable Hanamaru outlets.
• Improved profit structure by closing unprofitable outlets.
• Refined human resources, products, and outlets at Hanamaru.
• Introduced dual-line kitchens in the U.S. to improve efficiency.
• Developed effective new store designs in the U.S. emphasizing Japanese roots.
• Implemented a three-pronged brand strategy in the U.S. (Win with our Food, Modernize the Experience, Make It Easy).
• Revitalized internal communication and launched a care initiative for burdened employees.

Supply Chain Management

Responsible Procurement

• Securing preferential supply of food materials based on long-term relationships with suppliers.
• Hedging risks by purchasing from multiple sources.
• Compliance with quality control standards.
• Addressing animal welfare concerns.
• Preventing illegal labor and human rights violations.

Climate-Related Risks & Opportunities

Physical Risks

• Adverse impact on the supply chain through more frequent and severe weather events

Transition Risks

• Soaring food prices and tight supply; increase in procurement and energy costs resulting from resource depletion.

Opportunities

• Differentiating ourselves and enhancing our brand image through environmental measures.

Reporting Standards

Frameworks Used: International Integrated Reporting Framework (IIRC), ISO 26000

UN Sustainable Development Goals

• Goal 7 (Affordable and Clean Energy)
• Goal 8 (Decent Work and Economic Growth)
• Goal 12 (Responsible Consumption and Production)
• Goal 13 (Climate Action)

Initiatives contribute to these goals through various ESG efforts.

Sustainable Products & Innovation

• Tokugyu Salacia Premium (FOSHU-approved frozen beef bowl topping)
• Yoshinoya Gentle Meals (nursing care food)
• Canned meals for emergencies

Environmental Metrics

ESG Focus Areas

• Diversity and Inclusion
• Customer Health and Well-being
• Community Development
• Sustainable Supply Chain
• Climate Change

Environmental Achievements

• Reduction of CO2 emissions by 195 t per year (estimate) at Tokyo factory through solar power generation.
• Recycling rate of waste from domestic factories increased to 57%
• Reduction of specified plastics to 25.0 kg/100 million yen

Social Achievements

• Launched J-yoshinoya and Life Work Balance (LWB) Project to improve employee well-being.
• Increased percentage of female employees to 22.0% and female managers to 10.3%
• Provided meals to children's cafeterias 540 times (47,281 meals)

Governance Achievements

• Established Sustainability Promotion Committee.
• Established materiality KPIs with 2030 targets.
• Achieved targets of Medium-term Management Plan one year ahead of schedule.

Climate Goals & Targets

Environmental Challenges

• Rising raw material and utility costs.
• Labor shortages.
• Impact of climate change on supply chain.
• Maintaining profitability while expanding business.
• Egg shortage due to bird flu.

Mitigation Strategies

• Price revisions.
• Outlet format conversion (C&C model).
• Expansion of takeout/delivery specialty stores.
• Investment in new outlets and renovations.
• Improved supply chain risk management.
• Introduction of AI ordering system (US).

Supply Chain Management

Supplier Audits: 86% (2023)

Responsible Procurement

• Auditing suppliers for environmental and human rights issues.
• Considering environmental impact when purchasing materials.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events affecting crop production and supply chain.

Transition Risks

• Increased procurement and energy costs due to resource depletion.
• Legal restrictions due to delays in environmental regulation compliance.

Opportunities

• Developing products with low environmental impact.
• Differentiating through environmental measures.

Reporting Standards

Frameworks Used: International Integrated Reporting Framework (IIRC), ISO 26000

Certifications: Kurumin, Eruboshi, ECOMARK

UN Sustainable Development Goals

• Goal 1: No Poverty
• Goal 2: Zero Hunger
• Goal 3: Good Health and Well-being
• Goal 8: Decent Work and Economic Growth
• Goal 11: Sustainable Cities and Communities
• Goal 12: Responsible Consumption and Production
• Goal 13: Climate Action

Initiatives contribute to these goals through various ESG programs.

Sustainable Products & Innovation

• Beef and Steamed Vegetables Combo Bowl (Smart Meal® certified)
• Products using upcycled food waste (onion scraps).