Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Formulated Environmental Vision 2020 to strengthen environmental preservation activities throughout the Group.
• Statement on Biodiversity to respect biodiversity and protect the bounties of nature.

Social Achievements

• Global Challengers Program to foster human resources capable of conducting operations on a global stage.
• Asahi Breweries Environmental Culture Lecture and Asahi Forest Nature School to deepen understanding of the importance of the Earth’s environment.

Governance Achievements

• Transitioned to a pure holding company structure on July 1, 2011 to enhance Group governance functions.
• Introduced a Corporate Officer System to ensure timely execution of operations and clarify responsibilities and authority.

Climate Goals & Targets

Environmental Challenges

• Sluggish global economic performance and the protracted strength of the yen.
• Market weakness overall in Japan impacted by the Great East Japan Earthquake.
• Decline in demand due to the Great East Japan Earthquake.
• Decline in drinking-age population due to fewer births and aging population.
• Preference for low-priced products due to consumer belt-tightening.

Mitigation Strategies

• Boosting profitability in existing businesses.
• Full-scale rollout of Group global management by transitioning to a pure holding company structure.
• Enhance and cultivate core brands.
• Review our framework for producing beer-type beverages in Japan, and improved production processes in the alcoholic beverages and soft drinks businesses.
• Streamlined unprofitable operations in South Korea and China.
• Acquisitions in Oceania and Southeast Asia.

Supply Chain Management

Climate-Related Risks & Opportunities

Awards & Recognition

• Asahi Super Dry was awarded the gold at the Brewing Industry International Awards (BIIA)
• Taketsuru Pure Malt 21 Years was named “World’s Best Blended Malt Whisky” at the World Whiskies Awards

Environmental Metrics

ESG Focus Areas

• Food and health
• Environment
• People and society

Environmental Achievements

• Reverse production process for bioethanol production won the Grand Prize for the Global Environment Award
• Water resource preservation activities in water source forest areas at eight beer factories

Social Achievements

• Support for reconstruction following the Great East Japan Earthquake Disaster
• Hosting an event for fellowship among evacuees residing outside their home prefectures
• Organizing events for disaster-affected families and children in Fukushima

Governance Achievements

• Transitioned to a pure holding company structure
• Adopted a “company with corporate auditors” governance framework
• Introduced a Corporate Officer System

Climate Goals & Targets

Environmental Challenges

• Diminishing amount of drinks consumed due to Japan’s falling birthrate and aging population
• Shift in consumer preferences to inexpensively priced products
• Contraction of the RTD low-alcohol beverages market
• Impact of the consumption tax hike
• Rise in raw materials cost
• Fluctuations in raw material prices
• Effects of weather conditions, natural disasters
• Risks related to information systems
• Risks related to overseas business
• Risks related to the environment
• Risks related to changes in laws and regulations
• Trends in the control of alcohol beverages
• Risks related to litigation
• Fluctuations in value of owned assets
• Retirement benefits
• Business and capital alliances

Mitigation Strategies

• Profit structure reforms
• Maximizing brand assets
• Creating new value and new demand
• Strengthening solution-oriented marketing
• Consolidation of production and logistics facilities
• Acquiring the bottler of PepsiCo, Inc. and the second largest mineral water business in Indonesia
• BCP (business continuity plan) formulation
• Strengthening compliance promotion system
• Implementing appropriate security measures related to information management
• Proactively identifying risks and implementing countermeasures
• Waste recycling, energy conservation, reduction of CO2 emissions, and the recycling of containers
• Utmost care in expressions used in advertisements and information on container labels
• Actively involved in educating the public on responsible drinking
• Strengthening efforts to proactively identify risks and implement countermeasures
• Optimization of supply chain management (SCM)
• Effective utilization of sales promotion expenses
• Cost reduction efforts via joint procurement
• Consolidation of production sites
• Reduction of raw materials costs
• Reinforcing sales activities for mineral water products
• Releasing new tea-based label Real Iced Tea Co.
• Reinforcing brand power by renewing core brand products
• Launching new products
• Promoting sale of Somersby
• Making aggressive marketing efforts to sell Asahi Super Dry and other brands
• Consolidating production and logistics sites
• Promoting joint procurement of raw materials
• Consolidating sales organizations
• Concentrating marketing investments
• Optimizing delivery routes
• Reducing the weight of can lids and plastic bottles
• Establishing a strong presence in the Chinese market

Supply Chain Management

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

• Reverse production process for bioethanol

Awards & Recognition

• 22nd Grand Prize for the Global Environment Award

Environmental Metrics

ESG Focus Areas

• Climate Change
• Responsible Drinking
• Food Safety and Reliability
• Health and Nutrition
• Recycling-Based Society
• Biodiversity
• Human Resource Development and Diversity
• Healthy and Affluent Society
• Sustainable Water Resources
• Sustainable Supply Chains

Environmental Achievements

• Reduced CO2 emissions per basic unit to 907 kilotons in 2016 (from 918 in 2015 and 924 in 2014). Maintained a 100% recycling ratio of by-products and waste at the Asahi Group Head Office and manufacturing bases in Japan.
• Received the highest evaluation for the second straight year in a survey by CDP, an international nonprofit organization.

Social Achievements

• Improved ratio of female managers to 15.4% in 2016 (from 11.8% in 2015).
• Engaged in dialogue with approximately 121,000 participants in Wakodo Nutrition Consultations.
• Spent 1,390 million yen on social contribution activities.

Governance Achievements

• Voluntarily established the Compensation Committee and Nomination Committee.
• Appointed a sufficient number of independent Outside Directors.
• Increased dividend per share by ¥4.

Climate Goals & Targets

Environmental Challenges

• Maturation of the alcohol beverages and soft drinks markets due to the declining birthrate and aging population.
• Continuation of fierce competition in a deflationary environment.
• Increasing oligopolization by large global companies.
• Water scarcity in supplier areas.

Mitigation Strategies

• Strengthening of earning power by positioning the domestic profit base as the cornerstone of earnings and the overseas business as a growth engine.
• Asset and capital efficiency improvement that takes into consideration capital cost.
• Reinforcement of ESG initiatives to increase sustainability.
• Water consumption reduction by adjusting nozzles, cleaning tanks and pipes, and reusing water.
• Water risk surveys to identify suppliers for which risk measures should be implemented.

Supply Chain Management

Supplier Audits: 111 companies participated in Asahi Group Procurement Policy Presentations

Responsible Procurement

• Supplier quality audit checklist items added for water-related items.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: International Integrated Reporting Framework

Sustainable Products & Innovation

• Asahi Mogitate
• Clear Asahi Zeitaku Zero
• Asahi Oishii Mizu Plus Calpis no Nyusankin
• Agricultural material (fertilizer) containing beer yeast cell walls

Awards & Recognition

• Minister of Agriculture, Forestry and Fisheries Award at the 25th Global Environment Award
• Selected for the second straight year in the Health & Productivity Stock Selection
• Selected for the second straight year in the Competitive IT Strategy Company Stock Selection
• Selected as a Nadeshiko Brand
• Selected for the second straight year in the CDP Climate A List
• Selected as the only company from the region’s beverage sector listed on the 2016 Asia-Pacific Index of the Dow Jones Sustainability Indices

Environmental Metrics

ESG Focus Areas

• Sustainability
• Global Management
• Global Brands
• Environment
• Community
• Human Rights
• Responsible Drinking

Environmental Achievements

• Increased 2030 Scope 1 & 2 CO2 emission reduction target from 30% to 50% (2019 baseline)
• Achieved SBT 1.5°C target certification for 2030 Scope 1 & 2 emissions
• Joined RE100 initiative
• Cool Ridge (Australia) uses 100% recycled PET bottles
• Reduced plastic shrink film usage in Grolsch (Netherlands) by 100,000kg annually
• Issued Japan's first green bond by a food manufacturer

Social Achievements

• Launched global campaign "202inclusion (202i)" to promote diversity and inclusion
• Developed "People Statement" outlining new HR policies
• Improved employee engagement score to over 80%
• Implemented human rights due diligence for employees and suppliers
• Achieved 82% RTD products with <6g sugar per 100ml in Malaysia (exceeding target)

Governance Achievements

• Established Global Sustainability Committee
• Enhanced Enterprise Risk Management (ERM)
• Improved Global Governance through CXO system
• Developed CEO skillset and succession plan
• Increased board diversity

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impact on business
• Climate change impacts on agricultural yields and production costs
• Carbon tax introduction
• Shrinking beer market in Japan
• Global supply chain disruptions
• Maintaining financial health after CUB acquisition
• Attracting and retaining global talent

Mitigation Strategies

• Implemented cost reduction measures
• Developed alternative sourcing strategies
• Accelerated sustainability initiatives
• Strengthened brand portfolios
• Improved supply chain management through DX
• Debt reduction through increased cash flow
• Global talent development programs

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Asahi Group Sustainable Procurement Basic Policy
• Asahi Group Supplier Code of Conduct
• Human rights due diligence

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Water scarcity

Transition Risks

• Carbon tax
• Regulatory changes

Opportunities

• Development of energy-efficient products and processes
• Growth in low/non-alcoholic beverages

Reporting Standards

Frameworks Used: International Integrated Reporting Council (IIRC) framework, Value Co-creation Guidance

Certifications: SBT 1.5°C target certification

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Label-less bottles
• Recycled PET bottles
• Non-alcoholic beverages

Awards & Recognition

• CDP Climate Change A List (3 years running)
• Supplier Engagement Leader Board

Environmental Metrics

ESG Focus Areas

• Environment
• People
• Communities
• Health
• Responsible Drinking

Environmental Achievements

• Upwardly revised 2030 Scope 1 and 2 CO2 emission reduction target from 50% to 70% (compared with 2019).
• Achieved approximately 54% renewable energy electricity usage rate at all domestic production sites by the end of 2021.
• Launched test sales of simple eco-label products reducing CO2 emissions by approximately 58%.
• Commenced the use of green heat in the Netherlands and the Czech Republic, reducing CO2 emissions.
• Reduced annual aluminum waste and plastic usage by 48.4 tonnes and 57.6 tonnes, respectively, for Pilsner Urquell packaging.
• Rolled out cardboard packaging for six-packs of beer cans in the Netherlands, saving more than 100,000 kg of plastic a year.
• Victoria Bitter brewed using 100% offset solar electricity.
• Commenced Victoria Bitter deliveries via electric truck.

Social Achievements

• Launched Asahi Super Dry Nama Jokki Can, an innovative can that produces a foamy head.
• Launched a campaign to encourage COVID-19 vaccinations in Australia.
• Established the Global Diversity, Equity, and Inclusion Council.
• Set a target of increasing the percentage of women in leadership positions from 22% to 40% or more by 2030.
• Implemented e-learning courses on unconscious bias and responsible drinking.
• Supported local SMEs in Malaysia through rent-free vending machines.
• Commenced direct procurement of barley from Australian farmers.

Governance Achievements

• Improved the effectiveness of the Board of Directors through various initiatives.
• Narrowed down the number of items presented to the Board of Directors.
• Clarified key points of agenda items for outside directors.
• Enhanced the operations of the Nomination and Compensation committees.
• Appointed two new outside directors with expertise in international affairs and business innovation.

Climate Goals & Targets

Environmental Challenges

• Impact of COVID-19 pandemic on on-premise sales and demand.
• Rising geopolitical risks.
• Increases in various costs, including raw material prices.
• Tightening competitive environment.
• Climate change and the occurrence of large-scale disasters.
• Decline in beer consumption due to diversifying tastes and rising health consciousness.
• Decreased yields and quality of agricultural raw materials due to climate change.
• Restrictions on containers and packaging that are not eco-friendly.
• Potential human rights risks in the supply chain.
• Widening supply-demand gap in domestic logistics.

Mitigation Strategies

• Post-merger integration efforts.
• Premiumization of local brands.
• Global brand-oriented marketing strategy.
• New medium- to long-term growth strategy.
• Investment in decarbonization measures (over 50 billion yen by 2030).
• Transition to 100% eco-friendly materials for PET bottles by 2030.
• Collaboration with The Global Alliance for Sustainable Supply Chain (ASSC).
• Direct procurement of raw materials from farmers.
• Restructuring of supply chain management.
• Introduction of renewable energy and green heat.
• Development of new products and services in BACs and new business domains.
• Investment in R&D, DX, and human resources.

Supply Chain Management

Responsible Procurement

• Sustainable raw material procurement.
• Direct procurement from farmers.
• Collaboration with suppliers on environmental and human rights issues.
• Human rights due diligence.

Climate-Related Risks & Opportunities

Physical Risks

• Abnormal weather conditions
• Drought
• Flooding

Transition Risks

• Carbon tax
• Water resource-related regulations
• Changes in consumer behavior

Opportunities

• Development of energy-efficient products
• Expansion of sales of eco-friendly products

Reporting Standards

Frameworks Used: International Integrated Reporting Framework, Guidance for Collaborative Value Creation

Sustainable Products & Innovation

• Asahi Super Dry Nama Jokki Can
• Unlabeled PET bottles
• Cardboard packaging for six-packs
• Great Northern Zero
• Products with reduced sugar content

Environmental Metrics

ESG Focus Areas

• Climate Change
• Sustainable Packaging
• Sustainable Agricultural Raw Materials
• Sustainable Communities
• Responsible Drinking
• Enhancement of Human Capital
• Human Rights

Environmental Achievements

• Reduced Scope 1 and 2 CO2 emissions by 30% compared with 2019.
• Reduced Scope 3 CO2 emissions by 5% compared with 2019.
• 83% renewable energy to all electricity purchased at manufacturing sites (AGJ).
• 65% renewable electricity used at breweries (AEI).
• 99% utilization of materials for plastic containers that can be used effectively (Entire Group).

Social Achievements

• Completed formulation of DE&I medium- to long-term strategy.
• Launched and began operating a global and RHQ DE&I council.
• Improved employee engagement score from 79 in 2021 to 78 in 2022.
• Achieved 100% participation rate in safety and well-being training for plant employees (AGJ).

Governance Achievements

• Incorporated social value indicators (sustainability indicators) into director remuneration.
• Established the Global Safety and Well-being Council.
• Established the Global DE&I Council.

Climate Goals & Targets

Environmental Challenges

• Soaring prices of energy and raw materials.
• Emerging geopolitical risks.
• COVID-19 pandemic.
• Supply chain disruptions due to climate events.
• Insufficient consumer and partner awareness of sustainability initiatives.
• Lack of data for analysis in some areas of value relevance mapping.

Mitigation Strategies

• Integrating sustainability into management.
• Visualizing impacts to understand business and social impacts.
• Developing alternative sourcing strategies.
• Improving communication with stakeholders.
• Improving data collection and metric selection for value relevance mapping.
• Investing over 50 billion yen by 2030 to reduce CO2 emissions.
• Implementing human rights due diligence for suppliers and employees.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Asahi Group Supplier Code of Conduct
• Supplier CSR Questionnaire
• Engagement with suppliers to reduce carbon emissions

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Drought
• Flooding
• Reduced agricultural raw materials yield
• Damage to sites
• Disruption of transportation networks

Transition Risks

• Increasing costs of responding to environmental regulations
• Introduction of carbon taxes
• Taxation on fossil fuel materials
• Plastic excises

Opportunities

• Cost/CO2 reduction from more efficient distribution
• Sales process efficiency
• Low-carbon energy provision
• Encouraging new development
• Changing consumer tastes
• Diversification of financial assets

Reporting Standards

Frameworks Used: GRI, SASB, TCFD, UNGC

Certifications: ISO 14001, ISO 45001, FSSC 22000

Third-party Assurance: Lloyd’s Register Quality Assurance Limited (LRQA)

UN Sustainable Development Goals

• Goal 2
• Goal 3
• Goal 6
• Goal 7
• Goal 8
• Goal 10
• Goal 12
• Goal 13
• Goal 17

Various initiatives contribute to these goals through environmental protection, social responsibility, and economic growth.

Sustainable Products & Innovation

• Heat-pump vending machines
• Products using recycled PET bottles
• Unlabeled products
• Granola using brewer’s grains

Awards & Recognition

• Gold Award at 4th ESG Finance Awards Japan
• Changemaker Award at RE100 Leadership Awards 2022
• CDP A List for climate change (five successive years)

Environmental Metrics

ESG Focus Areas

• Climate Change
• Sustainable Packaging
• Sustainable Water Resources
• Responsible Drinking
• Sustainable Agricultural Raw Materials
• Biodiversity
• Human Rights
• Community Engagement

Environmental Achievements

• Reduced CO2 emissions in Scope 1 & 2 by 30% compared to 2019 (as of 2022)
• Achieved 100% renewable energy for electricity purchased at all production bases in Japan (April 2023)
• 21% eco-friendly materials used in PET bottles in 2022
• Construction of largest PET bottle recycling facility in Australia

Social Achievements

• Launched "RE: CONNECTION for the EARTH," a global employee engagement initiative
• Implemented "Respect 18" (Europe) to reduce underage drinking
• Opened SUMADORI-BAR SHIBUYA, offering drinks for both alcoholic and non-alcoholic beverage consumers
• Conducted working environment survey in manufacturing sites in Malaysia in collaboration with NGO

Governance Achievements

• Established a Group-wide sustainability promotion system
• 40% weighting of social value indicator for Directors’ mid-term bonus
• Issued JPY 25 billion in Green Bonds (March 8, 2023)

Climate Goals & Targets

Environmental Challenges

• Climate change impacts (physical and transition risks)
• Water scarcity
• Plastic waste
• Harmful alcohol consumption
• Human rights risks in supply chain

Mitigation Strategies

• Setting ambitious CO2 emission reduction targets (net-zero by 2050)
• Investing in renewable energy and energy efficiency
• Promoting sustainable packaging and recycling
• Developing non-alcoholic and low-alcohol beverages
• Implementing responsible drinking initiatives
• Conducting human rights risk assessments and establishing grievance mechanisms

Supply Chain Management

Responsible Procurement

• Collaboration with agricultural producers
• Sustainable sourcing of raw materials

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Water scarcity

Transition Risks

• Carbon pricing
• Changing consumer preferences

Opportunities

• Development of energy-efficient products
• Expansion of markets for sustainable products

Reporting Standards

Frameworks Used: TCFD, TNFD, ISSB

Certifications: SBTi 1.5°C and 2°C certifications (Scope 1 & 2), Climate Active (Cool Ridge)

UN Sustainable Development Goals

• Goal 7 (Affordable and Clean Energy)
• Goal 12 (Responsible Consumption and Production)
• Goal 13 (Climate Action)
• Goal 6 (Clean Water and Sanitation)
• Goal 8 (Decent Work and Economic Growth)
• Goal 15 (Life on Land)

Sustainable Products & Innovation

• Non-alcoholic and low-alcohol beverages
• Recycled PET bottles
• Products with reduced packaging