Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Not disclosed

Social Achievements

• Implemented a new personnel system in October 2020 focusing on career development for young employees, inter-departmental personnel exchange, and human resource development.
• Relocated headquarters in September 2020, leading to improved communication and efficiency.

Governance Achievements

• Continued efforts to expand corporate governance to ensure sound and transparent management.

Climate Goals & Targets

Environmental Challenges

• Impact of the COVID-19 pandemic on sales and profits, particularly in the sugar refining and Unitec Foods businesses.
• Supply chain disruptions due to the pandemic.

Mitigation Strategies

• Implemented work-from-home measures and utilized web interviews to avoid face-to-face business activities.
• Focused on stable supply of products.
• Increased focus on long-life products to mitigate supply chain issues and reduce food loss.

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

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Not disclosed

Environmental Achievements

• Not disclosed

Social Achievements

• Implemented a new personnel system in October 2020 focusing on young employee development, inter-departmental personnel exchange, and external secondments to cultivate next-generation personnel and enhance management capabilities of managers.

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• The COVID-19 pandemic significantly impacted the company's performance, leading to reduced consumption in the food service industry, events, and inbound tourism, resulting in decreased sales of refined sugar and related products. The subsidiary, Unitec Foods, also experienced decreased sales due to reduced consumption of its products.

Mitigation Strategies

• Cost reduction measures, particularly in sales and administrative expenses, helped mitigate the impact of reduced sales. The company also focused on expanding sales of inulin, both domestically and internationally.

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

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Sustainability
• SDGs

Environmental Achievements

• Not disclosed

Social Achievements

• Launched SDGs committee to improve corporate structure suitable for the Standard Market.
• Increased sales of inulin, a functional food ingredient, driven by increased adoption in products with functional claims, sugar-free products, and plant-based milk, contributing to SDGs goals.

Governance Achievements

• Established SDGs committee and implemented a new dividend policy to increase shareholder returns.

Climate Goals & Targets

Environmental Challenges

• Rising raw material prices (sugar, etc.), energy and logistics costs, and the weakening yen due to the Ukraine crisis and supply chain disruptions.
• Increased competition in the sugar industry.

Mitigation Strategies

• Implementing a "plus one" strategy to create new businesses and expand into adjacent areas, reducing reliance on the sugar business.
• Expanding into plant-based meat business through a strategic partnership.
• Increasing production capacity of inulin in Thailand.
• Expanding BtoC sales through e-commerce.

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

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Inulin (functional food ingredient)
• NIKUVEGE (plant-based meat)

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Sustainability
• SDGs

Social Achievements

• Established an SDGs Promotion Committee to enhance sustainability initiatives.
• Engaged in community outreach activities in Thailand, such as distributing sweets and coconut milk tofu to local residents during the Oak Pansar Buddhist event and providing bread to flood victims in Ayutthaya.

Governance Achievements

• Established an SDGs Promotion Committee.

Climate Goals & Targets

Environmental Challenges

• Increased costs due to rising raw material, energy, and logistics prices.
• Impact of the Ukraine conflict and post-COVID-19 demand recovery on raw material prices and costs.

Mitigation Strategies

• Cost reduction measures at Fuji Nihon Thai Inulin Co., Ltd. due to increased production.
• Continued focus on key areas such as health and care foods for Unitech Foods Co., Ltd.
• Maintaining initial full-year performance forecast despite challenges.

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Social contribution
• Environmentally friendly practices
• Respectful corporate culture

Environmental Achievements

• Not disclosed

Social Achievements

• Implemented stress checks, communication education, no overtime days, healthcare training, language study programs, promotion of female executives, self-development support, and childcare-related systems.
• Launched a shareholder reward program.

Governance Achievements

• Established a Sustainability Basic Policy with the goal of "a company with dreams and vigor, aiming for the realization of a sustainable society."

Climate Goals & Targets

Environmental Challenges

• Rising raw material and energy costs
• Global financial tightening
• Weakening yen
• Supply chain disruptions

Mitigation Strategies

• Increased product prices to offset rising costs
• Focused on growth in the non-sugar business segment
• Developed alternative sourcing strategies (implied)
• Implemented CSV (Creating Shared Value) management to address social issues and expand corporate value simultaneously.

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

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Climate Change
• Diversity & Inclusion
• Corporate Governance

Environmental Achievements

• Introduced green power, converting the entire annual electricity purchased by Tokyo headquarters and Shimizu factory to green power.

Social Achievements

• Aiming for a 20% female management ratio by 2028 (consolidated).

Governance Achievements

• Established a Sustainability Committee with the CEO as the head, reporting regularly to the board of directors.
• Strengthened the role of outside directors, aiming for a 50% outside director ratio.

Climate Goals & Targets

Environmental Challenges

• Decreasing sugar consumption due to factors like the popularity of sugar substitutes and demographic changes.
• Rising raw material, energy, labor, and logistics costs.
• Impact of the Ukraine situation on exchange rates and global economic slowdown.
• Potential risks associated with overseas operations (exchange rate fluctuations, unexpected legal/regulatory changes, political/economic instability).

Mitigation Strategies

• Strengthening sales systems and improving quality control to maintain customer satisfaction and reduce costs.
• Focusing on overseas business expansion, particularly in Thailand.
• Maintaining a solid financial base by increasing liquidity and securing sufficient working capital.
• Diversifying business operations and promoting decentralization of business functions.
• Implementing BCP measures such as telework and staggered commuting in case of emergencies.
• Utilizing foreign exchange reserves to mitigate exchange rate risks.

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Climate Change
• Diversity & Inclusion
• Corporate Governance
• Human Rights
• Sustainable Supply Chain

Environmental Achievements

• Not disclosed

Social Achievements

• Not disclosed

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Domestic population decline
• New infectious diseases and geopolitical risks (labor shortages, market shrinkage, rising material prices, stagnation of commodity logistics)
• Rapid fluctuations in exchange rates and interest rates
• ESG and SDGs

Mitigation Strategies

• Strengthening overseas expansion
• Optimizing the value chain
• Promoting M&A strategies
• Sustainability management
• Human capital investment
• Creating new business areas

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Sourcing sustainable materials and raw materials with sustainability certifications

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

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Climate Change
• Diversity & Inclusion
• Corporate Governance
• Human Rights
• Sustainable Supply Chain

Environmental Achievements

• Not disclosed

Social Achievements

• Not disclosed

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Domestic population decline
• Infectious diseases and geopolitical risks (labor shortages, market shrinkage, rising material prices, stagnation of commodity logistics)
• Rapid fluctuations in exchange rates and interest rates
• Climate Change

Mitigation Strategies

• Expansion and strengthening of overseas operations
• Optimization of the value chain
• Promotion of M&A strategies
• Sustainability management
• Human capital investment
• Creation of new business areas

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Sourcing sustainable materials

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

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed