Our vision

We will contribute to a sustainable global environment
in order to perpetually develop together
with supply chain partners.

  • In order to reduce environmental load across the supply chain, we will strive to minimize supply chain greenhouse gas emissions and otherwise resolve environmental and social issues that affect the supply chain, with the aim of carbon neutrality by 2050.
  • By minimizing adverse effects on the environment in all processes, from raw material procurement to consumption and disposal, we will develop and manufacture environmentally friendly products.
Related links

Environmental Management Initiatives

Environmental Policy

Target for FY2030
Scope1+2
CO₂ emissions reduction rate
38% or higher
(compared with FY 2013)
Resources and the Environment

Mitigation of and Adaptation to Climate Change

We will minimize greenhouse gas emissions that affect climate change from our company and from the supply chain, and will lessen the effects of climate change on our business.

Climate change poses multi-faceted risks to business activities, such as inadequate raw material procurement caused by global warming and the effects of typhoons and other weather-related disasters on production and distribution. We are cooperating with stakeholders inside and outside the company to tackle mitigation of and adaptation to climate change.

We further seek to minimize greenhouse gas emissions not only from our company but also from the entirety of the supply chain affected by climate change.

Examples of recognized risks and opportunities

Risks
  • Increase of raw material procurement costs and decrease of their quality
  • Increase of operating costs from introduction of carbon tax
  • Suspension of production sites and logistics due to climatic damages
Opportunities
  • Enhancement of procurement capabilities in preparation for climate change
  • Gain trust by actively engaging in activities to combat climate change
  • Cooperation with external bodies to pursue decarbonization

Main actions

  • Construction and monitoring of mechanisms for assessing CO₂ emissions
  • Improvement of the ratio of renewable energy during manufacturing and promotion of energy-saving activities
  • Reduction of number of vehicles through reviewing of delivery courses and joint deliveries with other companies
  • Maintenance and expansion of the percentage of sites formulating climate change BCPs
Related SDGs
sdg 1
sdg 7
sdg 11
sdg 13
sdg 17

Targets for FY 2030

Scope1+2
CO₂ emissions reduction rate
(compared with FY 2013)
38% or higher

Intermediate target
(by FY 2024)
23% or higher
Scope3
GHG emissions reduction rate
(compared with FY 2020)
10% or higher

Intermediate target
(by FY 2024)
3% or higher
Percentage of sites formulating BCPs to address climate change* ※1
100%

*Percentage of sites performing BCP compliance (preparing BCPs, etc.)

※1 Target of Morinagamilk group (including overseas offices)

Topics

Initiatives to reduce CO₂ and other GHGs

Morinaga Milk Group will carry out its business activities while minimizing greenhouse gas emissions that impact climate change from our company and from the supply chain while understanding the affect climate change has on our business operations.

We established the TCFD Working Group under the CSR Committee in 2020 to evaluate the impacts of climate change on our business activities, and carried out scenario analyses on business risks.
In October 2021, under the Sustainability Committee, which was formerly named as the CSR Committee, we established the Climate Change Subcommittee as an organization to propose Group-wide strategies related to climate change to the Sustainability Committee.

The Board of Directors of Morinaga Milk receives regular reports on these activities and oversees the Sustainability Committee’s processes and effectiveness of measures.

Picture of Climate Change Subcommittee
Adoption of Internal Carbon Pricing (ICP) System

The Morinaga Milk Group has adopted an Internal Carbon Pricing (ICP) System from FY 2023.
We took part in the Ministry of the Environment's FY 2022 Model Project of Using the Internal Carbon Pricing (ICP) Mechanism in Investment Decisions, and decided to adopt the system following discussions amongst internal working group members. The internal carbon price was set to 6,800 yen/t-CO2 for FY 2023.
Moving forward, the calculated costs of applying the set carbon pricing will be used as one of the decision criteria for capital investment plans that entail an increase or decrease in GHG emissions.
The adoption of this system will help absorb the financial impact of GHG emissions and also reduce the amount of emissions.

Participation in Emissions Trading System (GX-ETS)

The Morinaga Milk Group views initiatives aimed at achieving carbon neutrality by 2050 as an opportunity for economic growth, and as such has endorsed the GX League launched by the Ministry of Economy, Trade and Industry in 2022 by embarking on initiatives for reducing its amount of greenhouse gas emissions.
In 2023, it also joined the GX-ETS emissions trading scheme run under the GX League, as it works to move closer to carbon neutrality by 2050.

Initiatives Related to Dairy

Introduction of MO-Lagoon for Dairy
Methane has the second largest impact on global warming after carbon dioxide, making methane reduction a major challenge for the dairy industry.
At Nasu-gakuroku Farm, which is controlled directly by the Morinaga Milk Group, a pilot test facility has been introduced in which methane generated from excrement is collected at the biogas plant to generate electricity, and the by-product residue is treated with the Morinaga Milk Group's proprietary MO-Lagoon®*1, which decomposes wastewater using the power of microorganisms.
We aim to reduce methane emissions from ranches by up to 30% by recovering and effectively using them at the biogas plant.

*1 Taking a method similar to the purification process in nature, dairy wastewater is slowly decomposed and treated by microorganisms in a large water purification tank.
It is an environmentally friendly purification system that is easy to maintain and generates very little surplus sludge (solid matter in the wastewater).

Initiatives with Raw Material Suppliers

Since 2020, we have been actively engaged in Mt. Rainier Forest, a tree planting initiative with Daterra Coffee (Brazil), the supplier of the green coffee beans used in our chilled cup coffee beverage, Mt. RAINIER CAFFÈ LATTE.

A total of 77,000 trees will be planted by 2024, which is expected to reduce CO₂ emissions by approximately 5,000 tons over the next 30 years.
In addition, identifying with the philosophy behind the Tree_llion Project, a tree-planting initiative from Daterra Coffee for protecting the environment, Morinaga plans to plant 300,000 trees by 2030.

  • Initiatives with Raw Material Suppliers 1
  • Initiatives with Raw Material Suppliers 2
Initiatives at Business Sites

Energy-saving activities
The operation of production equipment is being revised as part of projects involving resource- and energy-saving activities, with upgrades of air-conditioning equipment to inverter models helping to reduce CO₂ emissions. This helped to reduce around 7,000t of CO₂ emissions during FY 2022.

Utilization of Renewable Energy
・Use of Biomass Heat
In January 2009, Morinaga Milk Group’s Kobe Plant, one of our core plants, introduced biomass equipment to use residues generated in production processes of beverages, yogurt, and other products as fuel for effective use for the plant. For example, residues derived from coffee beverages and yogurt, which are biomass, are gasified through methane fermentation and are used as fuel in boilers.
Coffee grounds are dried and combusted in a biomass boiler to extract heat energy.
The residue generated by methane fermentation is also used as boiler fuel. Since the operation of the biomass boiler began, the plant has collected varied operational data, optimized biomass volumes and furnace temperature, and explored operating conditions matched to production volume. On the other hand, although it is necessary to maintain the fermentation temperature to produce methane stably using methane fermentation equipment, waste heat from the process is recovered and used.
Through such initiatives, the plant has successfully reduced fuel used in boilers, reducing CO₂ emissions by approximately 1,000 tons annually.

・Green Power Utilization and Purchase of Green Power Certificates
In April 2022, our Research/Information Center switched to green power for all purchased electricity.
Our Tama Site (Tokyo Tama Plant, Yamato Plant, Engineering Development Department, and Chilled Products Coordination Center – East Japan), Kobe Site (Kobe Plant, Chilled Products Coordination Center – West Japan, and Kansai Dairy Farm Services Office) purchase Green Power Certificates* equivalent to a portion of the electricity purchased.

*A tradable certificate of the environmental added value of electricity obtained from renewable energy sources, or a system that uses such certificates.

・Solar power generation
Solar power generation systems were installed at the Tokyo Tama Plant, Tone Plant and Group company Furijiport's Kumamoto Plant, reducing CO₂ emissions by around 1,000 t annually.

Establishments recognized for energy conservation efforts
・Tama Site
At the Tama Site, we have been working to reduce our environmental impact by introducing gas cogeneration and solar power generation systems.
In recognition of these efforts, the site has been continuously certified as a top-level facility (Outstanding Global Warming Countermeasure Office) under the Tokyo Metropolitan Environmental Security Ordinance “Tokyo Cap-and-Trade Program” since FY2010.

・Morinaga Milk Industry, Hiroshima Morinaga Milk Industry, Tokachi Urahoro Milk Industry
Morinaga Milk Industry, Hiroshima Morinaga Milk Industry and Tokachi Urahoro Milk Industry have received the highest S-class Rating (Excellent Business Operator) in the Business Operator Classification System that the Ministry of Economy, Trade, and Industry assess companies for outstanding energy efficiency practices.

Fuel Conversion (Switchover to Gas)
In February 2021, we switched to city gas and liquefied natural gas, which emit less CO₂ per calorie than heavy oil, as the main fuels used at all 11 plants in our direct production line.

Initiatives at Overseas Business Sites
Our German subsidiary Milei introduced cogeneration system in 2012 and has been working to reduce its environmental impact for more than 10 years, including supplying about 70% of its annual electricity consumption using a cogeneration system.
In addition, solar power generation equipment was installed on the roof of the warehouse in August 2022, which is expected to reduce CO₂ emissions by approximately 250 tons per year.
EV charging stands have also been installed around sites to facilitate the gradual shift to electric vehicles.

Solar power generation equipment at Milei
Initiatives in Logistics

Modal Shift
The Morinaga Milk Group is promoting a modal shift from truck-based to rail- and sea-based transport.
In August 2021, we switched from truck-based to sea-based transport for room-temperature transport between Tokyo and Fukuoka. By reducing the number of vehicles used and switching over to sea-based transport, we reduced CO₂ emissions by 77% and reduced annual CO₂ emissions by approximately 380 tons.
In February 2022, we switched from truck-based to rail freight-based transport for normal temperature transport between Tohoku Morinaga Milk Industry Co., Ltd.’s Sendai Plant and an outsourced warehouse facility in Osaka Prefecture, reducing CO₂ emissions by 84.2% and reducing annual CO₂ emissions by approximately 65 tons.

modal shift

Improved Pallet Loading Efficiency
By replacing crates (returnable boxes) with corrugated cardboard to reduce the exterior size of our main product, we have increased the quantity that can be loaded per pallet for logics by 39% and eliminated the need to return empty crates, reducing transport-based CO₂ emissions by 56% and reducing annual CO₂ emissions by approximately 800 tons.

Related links

Initiatives Related to TCFD

“MO-Lagoon for Dairy,” a manure processing system for dairy

Implementation of Modal Shift in Ambient Temperature Shipping from Miyagi to Osaka

BCP measures to respond to climate change

The Morinaga Milk Group is implementing BCP measures to minimize the effects of climate change and various other operational risks.

BCP measures at overseas manufacturing sites

Survey of water risks
The Morinaga Milk Group recognizes that water is an essential resource for the businesses it operates, and is actively working to reduce the amount of water consumption and conserve water resources.
There are concerns over the potential risks associated with water resources and flooding caused by the effects of climate change into the future. We conducted a survey of water risks at business sites in FY 2022, with the aim of identifying the current situation and to clarifying the presence of severe risks related to operational continuity. Surveys of water risks were conducted based on the survey results of the global tool Aqueduct released by the World Resources Institute (WRI) that displays global water risk evaluation results on a map—assessments also factored in local knowledge collected via interviews held at overseas manufacturing sites.
The results revealed a number of overseas manufacturing sites that had a high level of water risk due to geographical factors. Measures to tackle water risks are already being implemented or are currently being examined at affected sites to ensure the optimal approach to water resource conservation.
(Water consumption in FY 2022 at overseas manufacturing sites with a high water risk was 1,705 thousand m3)

Other BCP measures

BCP measures for raw materials

  • Selection of products vital to business continuity, and BCP surveys of their raw materials We identify products that fulfill our social responsibilities and products that exert large impacts extending from dairy farms to partners and customers, and check whether the raw materials for those products are BCP compliant and whether alternatives exist.
  • Assessment of the BCP compliance status of suppliers
    We survey major suppliers by questionnaire to check for BCP compliance, and work to assess current conditions and mutually raise awareness of business continuity.
  • Collaboration with suppliers using the system
    To agilely cooperate with suppliers in the event of an earthquake or other emergency, we have introduced a supplier management system for the centralized management of information.
  • Promotion of multiple-source purchasing and regional decentralized purchasing
    As Morinaga Milk also procures dairy ingredients from Oceania, Europe, the United States, and elsewhere overseas, we aim to secure multiple purchasing sources when possible to mitigate risks from climate change and international affairs. We also have a system in place that always enables the purchase of dairy products with stable quality at appropriate prices.
    We promote multiple-source purchasing and regional decentralized purchasing for other raw materials as well, in preparation for future supply risks.
Related links

Basic Policy of the Morinaga Milk Group’s BCP

Supplier Guideline

Initiatives to Reduce Environmental Impact of Raw Milk Production and Strengthen the Foundations for Milk Production

In order to reduce the environmental impact of milk production and strengthen its foundations, the Morinaga Milk Group will introduce "MO-Lagoon for Dairy," a manure treatment system for dairy and livestock farming that combines livestock biogas power generation and wastewater treatment, at the Nasu Gakuroku Dairy Farm operated by its affiliated company, Morinaga Dairy Service Co., Ltd. The system is planned to be launched into operation in spring 2023.

When a dairy farmer expands their business scale, the amount of manure generated increases in proportion to the number of cattle raised. Therefore, it is necessary to increase the manpower required to process manure and secure a farm (a place to grow crops) to reduce compost. There is also a need to reduce greenhouse gas (GHG) emissions. In particular, methane accounts for the majority of GHG emissions from dairy farming. Since methane has the second largest impact on global warming after carbon dioxide, its reduction is a major challenge for the sustainable dairy industry.

To solve this problem, we will conduct pilot tests of a system that combines a biogas plant with MO-Lagoon® (*1), a proprietary technology of the Morinaga Milk Group that decomposes and processes wastewater using the power of microorganisms. MO-Lagoon® (*1) will be applied to purify manure in dairy farming and livestock farming, enabling the discharge of purified water. By generating electricity using methane at biogas plants, we aim to reduce methane emissions from ranches by up to 30%.

The system itself will be marketed to dairy farmers throughout Japan in the future based on the verification results of its effectiveness, thereby contributing to the reduction of environmental burdens and manure treatment issues faced by many dairy farmers.

*1 Dairy wastewater is slowly decomposed using the power of microorganisms in a large water purification tank, which is similar to the purification action of the natural world. It is an environmentally friendly purification system that is easy to maintain and generates very little excess sludge (solid matter in wastewater).

Related links

“MO-Lagoon for Dairy,” a manure processing system for dairy

Working on Climate Change with Initiatives and Industry Groups

Pathways to Dairy Net Zero Initiatives

The Global Dairy Platform (GDP) is an international organization that was established in 2006 with the aim of leading collaborative efforts for addressing common challenges throughout the dairy sector. Morinaga Milk has been a member since 2013, and filled the role as a director company from 2023.
In collaboration with bodies like the Food and Agriculture Organization of the United Nations (FAO) and the International Dairy Federation (IDF), GDP launched Pathways to Dairy Net Zero in 2021 as an initiative aiming to accelerate climate change action for preventing global warming with the view to reducing greenhouse gas (GHG) emissions across the dairy sector. This initiative covers approximately 40% of global dairy farm and milk production, and is backed by more than 100 organizations, including Morinaga Milk.
It categorizes a broad range of dairy farming operations around the world into similar types, and produces and implements guidelines for reducing GHG emissions for each category. The Dairy Sustainability Framework (DSF) is one of the collaborating organizations that is collating data and monitoring progress. Details and results of these initiatives are released at the Conference of the Parties (COP) of the United Nations Framework Convention on Climate Change (UNFCCC).

Japan Dairy Industry Association Initiative

In Japan, the Japan Business Federation (Keidanren) has been promoting efforts toward a low-carbon society as a voluntary action plan since 1997 as an initiative of industries as a whole. More than 50 industries participate in this initiative with each industry publishing its greenhouse gas reduction targets every five years and releasing the results of their efforts. Through the Japan Dairy Industry Association (Chairman: Michio Miyahara, Chairman and Representative Director of Morinaga Milk Industry Co., Ltd.), the Group is also participating in this voluntary action plan, playing a leading role in setting greenhouse gas reduction targets for the dairy industry and participating in its efforts.
The plan is published on the websites of Keidanren and the Japan Dairy Industry Association.

The Morinaga Milk Group aims to achieve carbon neutrality by 2050 under the Sustainability Medium- to Long-Term Plan 2030. To support this aim, the Sustainability Committee’s Climate Change Initiatives Subcommittee will play a leading role of promoting initiatives to reduce greenhouse gas emissions.

* Six Principles of Pathways to Dairy Net Zero: 1. Mitigation, 2. GHG removals, 3. Avoidance and adaptation, 4. Insets and offsets, 5. Measuring and monitoring, 6. Overall support.

Related links

Pathways to Dairy Net Zero

Dairy Sustainability Framework (DSF) FY 2021 Report

Resources and the Environment

Environmental Consideration and Resource Recycling

We minimize adverse impacts on the environment in all processes, from raw material procurement to consumption and disposal. We also mitigate impacts on the environment through environmental conservation initiatives.

Morinaga Milk Group's products make use of milk and other ingredients derived from nature. We believe that protecting this nature is essential to the continuation of our business.

Toward this end, initiatives to reduce food loss and industrial waste, curbing the use of water and other resources through efficient use, design of containers that take into consideration the recycling of plastic resources, and consideration of biodiversity are essential.

Maintaining close communication with our partners, we will aim for a sustainable society not only within our company but throughout the supply chain.

Examples of recognized risks and opportunities

Risks
  • Increase in procurement costs due to damage to natural capital and tightening of regulations
  • Increase in operational risks due to contamination and destruction of ecosystems
  • Decline in market competitiveness and trust due to lagging action
Opportunities
  • Formation of new markets focused on environmental considerations
  • Expansion of business opportunities through collaboration with other companies
  • Securing of stable raw material supplies through environmental conservation initiatives

Main actions

  • Acquisition of ISO14001 certification and maintenance of operational system at all group manufacturing sites
  • Reduction of the amount of petroleum-derived virgin plastic used in plastics subject to the Containers and Packaging Recycling Law
  • Improvement of the industrial waste recycling rate
  • Reduction of in-house food loss and improvement of food waste reuse rate
  • Expansion of environmentally considerate design
  • Reduction of water resource usage and conservation of water sources
  • Conservation of biodiversity through an increase in the number of providers of environmental conservation technology and through improvement of water quality by wastewater treatment
Related SDGs
sdg 1
sdg 2
sdg 6
sdg 7
sdg 11
sdg 12
sdg 14
sdg 15
sdg 17

Targets for FY 2030

ISO14001 certification maintenance rate at all domestic production sites
100%

Intermediate target
(by FY 2024)
Completion of certification acquisition at all domestic production sites
Petroleum-derived
virgin plastic usage reduction rate
(compared with FY 2013)
25% or higher

Intermediate target
(by FY 2024)
10% or higher
Industrial waste recycling rate
Achievement of
zero emissions

Intermediate target
(by FY 2024)
99%
Water resource
usage reduction rate
(compared with FY 2013)
15% or higher

Intermediate target
(by FY 2024)
11% or higher
Maintain and improve water quality of wastewater
Rate of accommodation of environmentally friendly design in major brands
100%

Topics

Initiatives Related to Containers and Packaging (Plastic, Paper.)

The Morinaga Milk Group uses plastic containers for many of its products. We consider the various problems caused by plastic containers to be important social issues. On the other hand, since plastic containers contribute to extending shelf life and convenience in use, we believe it is essential to use them in a way that maximizes their functions while considering their environmental and social impacts.
With this basic standpoint, Morinaga Milk has established its Eco-package Guide, which sets out design guidelines for environment-friendly containers and packages.

*The guide describes the development and improvement of containers and packaging that were designed with the 3Rs (reduce, reuse, recycle), product safety, and quality preservation in mind from the product planning and development stage.

In addition, we completely revised the contents of the guide in 2018 to comply with "Guidance on Environmentally-conscious Packaging Design in Accordance with JIS" issued by the Ministry of the Environment and also implement Containers and Packaging Environmental Confirmation Sheet to check that the packaging considers the environment when selecting packaging. We will promote the development of containers and packaging that are excellent in terms of environmental friendliness, safety of the product, and quality assurance.

Initiatives Related to Plastic

The Morinaga Milk Group uses plastic, paper, can and other containers that match the characteristics of our products. In particular, we are strengthening our efforts to make effective use of resources by replacing plastic containers with biomass plastic and reducing the use of petroleum-derived virgin plastic.
In 2018, we established the Plastics Subcommittee, a subcommittee of the CSR Committee. In October 2021, the Plastics Subcommittee was established as a subcommittee of the Sustainability Committee, which changed its name from the CSR Committee, which discusses initiatives to reduce plastic resources used for containers and packaging, and reports back to the Sustainability Committee.
The Board of Directors of Morinaga Milk oversees the activities of the Sustainability Committee with regard to the process of its activities and the effectiveness of its measures.

Picture of Plastics Subcommittee

Cooperation with Related Organizations
The Morinaga Milk Group works with various industry groups and participates in the Ministry of Economy, Trade’s Clean Ocean Material Alliance (CLOMA) and the Ministry of the Environment‘s Plastics Smart Forum to more effectively tackle plastic waste issues. In addition, we have invested in R Plus Japan Ltd., which is advancing initiatives for recycling used plastics. Furthermore, we are a member of recycling-related organizations such as the Plastic Packaging Recycling Council.


Examples of Plastic Container Related Initiatives

  • Reduction of Plastic Usage
    In an effort to reduce the use of petroleum-derived plastics, the Morinaga Milk Group has adopted lighter PET bottle containers for some of its drink yogurt lines. As a result, the weight of each PET bottle could be reduced from 10.0 g to 8.5 g and the amount of petroleum-derived plastic used is expected to be reduced by 15%.
    In addition, 100% of the plastic caps for paper packs (330ml) and approximately 96% of the straws for beverage products that include straws will be made from biomass plastic, which is expected to reduce the annual consumption of petroleum-derived plastics by approximately 52 tons.

    Examples of products that use straws containing 5% biomass plastic
  • Recycling of plastic logistics materials
    As an initiative to reduce the use of petroleum-derived virgin plastic, we purchase plastic logistics materials containing 30% recycled materials made from damaged or deteriorated plastic distribution materials (crates and pallets) that have become unusable, and use them again within the Morinaga Milk Group.
    Through these and other initiatives, we will reduce the amount of petroleum-derived virgin plastic used in distribution materials.

    Diagram of in-house plastic resource recycling
Initiatives Related to Paper Packs

The Morinaga Milk Group is a member of the Committee for Milk Container Environmental Issues, of which about 130 companies including milk manufacturers and container manufacturers are members. The Committee for Milk Container Environmental Issues has set a paper pack collection rate of 50% or more for FY2025. Accordingly, the Morinaga Milk Group is also working to achieve this target. In addition, we are promoting initiatives as a member of the Paper Packaging Recycling Council and the LL Paper Pack Recycling Study Group.


Example of a Paper Pack Recycling Related Initiative
The Morinaga Milk Group manufactures and sells products that make use of paper cartons and paper cartons with aluminum material.
We collect waste paper generated in the manufacturing process as well as used paper cartons and paper cartons with aluminum material, and hand them over to a recycling plant so they can be recycled to make toilet paper and other products.


Initiatives at Business Sites
We have set up paper-pack recycling collection boxes at Morinaga Milk Group sites to raise awareness of recycling among all employees. Collected paper packs are recycled through collection companies.
To recycle paper packs, packs and straws need to be separated. Collection boxes for containers and straws have been provided in locations, including the conference room floor of the Head Office, to encourage sorting.


Activities Designed to Promote Paper Pack Recycling
The Morinaga Milk Group holds classes for elementary school students and company visits for junior high and high school students as part of its efforts to support the growth of the next generation.
The on-demandsite lessons on SDGs, one of our programs for elementary school students, is an initiative to contribute to the achievement of the SDGs. Through these lessons, students learn that paper packs can be recycled.
It introduces students to the concept of how paper packs can be transformed into toilet paper by washing, opening, and drying the packs, and encourages participants to recycle them.
In addition, during company visits designed for junior and senior high school students, a video presentation introduces students to the 3Rs (reduce, reuse, recycle) in an easy-to-understand manner and shows that participants contribute to the SDGs by selecting environmentally-friendly products.

A video on recycling that is played during each on-demane lessons on SGDs

We also carry out promotional activities making use of our products.
For example, our Morinaga Milk 1,000ml packages provide information on the relationship between milk cartons and recycling, promotes awareness of the concept.

Related links

Switching Containers and Straws for Part of the Beverage Products to Biomass Plastic Mixed Materials

Expanding switch to straws containing biomass plastics

Start of In-house Plastic Resource Recycling for Logistic Materials

Awareness about recycling is promoted using the advertising section of our Morinaga Milk 1,000ml milk cartons

Initiatives to reduce food loss

Morinaga Milk Group is working to reduce food loss across four key stages—minimizing losses, selling all products, making donations, and recycling—so as to make careful use of the precious gifts from nature and to enable customers to enjoy our products with peace of mind as long as possible.

Initiatives to minimize losses

Long-life products
Morinaga Milk Group handles many dairy products that are nutritious and generally prone to perishing, but some of these have a shelf life of one month or longer.
Many of these products are achieved through our unique Long-Life Production Methods. These methods sterilize food and containers separately and perform packaging in a sterile environment to achieve both deliciousness and long life without preservatives or antiseptic agents.
As long-life products have a long shelf life, they can be used in a planned manner and are expected to result in a lower disposal rate. They are also suitable for stockpiling in preparation for disasters, under the concept of rolling stock*1.
One such product, the Morinaga TOFU series, was released in January 2019 as Japan's first tofu that can be stored at room temperature*2. This was made possible by revisions to tofu standards and food labeling standards in 2018 that lifted a ban on the sale of aseptic packaged tofu at room temperature. The National Resilience Promotion Office of Japan’s Cabinet Secretariat also selected Morinaga Milk as a notable example of private-company resilience and published our efforts in its collection of private-sector resilience initiatives (for 2020).

*1 A method of consuming and restocking emergency foods on a regular (rolling) basis to ensure that emergency supplies at home are not out of date.
*2 Based on Morinaga Milk research. (Survey cooperation: DO HOUSE Inc.)

Visualization of raw material losses and improvement activities
We are making every effort to reduce raw material losses incurred during the manufacturing stage at production sites, and implement methods to visualize the volume of loss during each stage as part of these efforts.
Reduction targets are also set for each manufacturing site, with improvement activities held to achieve them.

Selling all products

We worked with Kuradashi Co., Ltd. to run the Save Ice Project that aimed to reduce losses of ice cream, which suffers significant seasonal changes in demand.
Demand for ice cream is generally highest in summer, and this tends to taper off when the weather begins to cool down in fall.
Ice cream that could not be sold due to changes in temperature or demand was delivered to customers at an affordable price via the Save Ice Project, thereby preventing wastage.

Making donations

We coordinate efforts with relevant organizations to help reduce food loss.
As part of these efforts, Morinaga Milk registered as a food donor with Second Harvest Japan, and began making donations of food products.
Business sites in Japan and overseas also provide donations as part of initiatives to reduce food loss.
The Fukushima Plant supplied food banks in Fukushima Prefecture with emergency food stocks. To ensure ongoing support, plant employees were called upon to donate excess food items from their own home, resulting in a total of 170 items being donated.
Initiatives are also conducted at overseas sites to help reduce food loss.
In FY 2022, MNF in the United States donated around 110,000 units of MoRI-NU® TOFU that was nearing their expiry date.
In March 2022, Elovi in Vietnam donated around 14,000 packs of Climeal nearing their expiry date to people suffering from malnutrition.

  • A food bank to which Fukushima Plant donated

  • Elovi in Vietnam donated Climeal to people suffering
    from malnutrition
    (Right)Donated Climeal

  • MORI-NU® TOFU donated by MNF in the United States

Recycling Initiatives

Making animal feed from okara PNF, the manufacturer of Mori-NU® TOFU based in the United States, supplies okara generated in the manufacturing process to PNF's business partner farmers. The okara provided is reused as feed for cows.
At the Tone Plant, okara collected while producing tofu is fermented with lactobacillus to make feed, which is sold to dairy farmers by Group affiliate Morinaga Rakunou Co., Ltd.
The raw milk from dairy cows consuming this feed is used as raw material at manufacturing sites, resulting in an economical and environmentally friendly cycle.

Other Initiatives

Reuse of coffee grounds as organic fertilizer We deliver approximately 900 tons of coffee grounds to an organic fertilizer manufacturer which are later sold as organic fertilizer.

Initiatives for water resource conservation

The Morinaga Milk Group recognizes that water is an essential resource for the businesses it operates, and is actively working on advancing wastewater treatment to reduce the amount of water consumption and conserve water resources.

Initiatives for reducing water resource usage

The Morinaga Milk Group has set targets for reducing water resource usage at all (100%) of its manufacturing sites that have obtained ISO 14001 certification to systematically reduce usage.
Projects involving resource and energy-saving activities are implemented as part of these efforts, where use of water resources is being reduced by collecting and reusing water consumed during production processes, and revising the operation of equipment that uses water.
These efforts have helped to reduce consumption of water resources by around a million tons annually.

Advanced wastewater treatment
Each of our manufacturing sites is equipped with wastewater treatment facilities developed by our Group company Morinaga Engineering Co., Ltd. to clean wastewater after use and return it to nature.
The facilities use what is called the activated sludge method, where microorganisms consume and remove the nutrient content of wastewater, and enable the discharge of clean treated water with the activated sludge separated by gravity.
At some plants, we have introduced MBRs (membrane bioreactors) that use membranes to separate activated sludge and achieve a higher level of cleanliness in the treated water.
These wastewater treatment facilities are used by the Group and by nearly 300 partner companies, which is contributing to advancing wastewater treatment throughout Japan including the supply chain.
Membrane bioreactor (MBR) system that uses membranes for the separation of activated sludge
Initiatives for reusing water resource

The Kobe Plant has installed equipment that uses water treated with MBRs (membrane bioreactors), with the system developed for reusing 110,000 tons of water per year as makeup water for refrigeration equipment.

Investment Costs for Water Management

Water management costs in FY 2022 were as follows.
・Water-related capital investment: 455 million yen (Morinaga Milk Industry only)
(capital investment in intake and drainage facilities and water conservation measures)

Collaborating with other initiatives

The International non-profit organization CDP is a project that requires companies around the world to disclose their climate change initiatives and environmental information, and analyzes and assesses the collected data, and discloses it to investors—Morinaga Milk has provided answers to all CDP questionnaires, including CDP Water, since 2019. We will continue to promote the conservation of water resources throughout the supply chain.

Initiatives for biodiversity conservation

Most of Morinaga Milk products' raw materials, including milk, are made using nature’s rich bounty of agricultural products. With gratitude to nature for these gifts, we believe that protecting ecosystems is essential to our continued business. The Morinaga Milk Group is committed to the conservation of biodiversity through various initiatives such as procurement of raw materials, in line with its Biodiversity Policy.

Initiatives for raw materials procurement

Morinaga Milk uses Rainforest Alliance Certified materials for some of its coffee products. Rainforest Alliance Certified farms undertake actions including forest and ecosystem protection, soil and waterway conservation, and improvement of the working environment, livelihoods, and human rights of farm workers, while also meeting rigorous standards, to create a better future for people and nature.

Sustainable raw material procurement

Initiatives at business sites

Environmental conservation is a factor that is taken into consideration when installing equipment at manufacturing sites.
The majority of our manufacturing sites are equipped with wastewater treatment facilities (MO-Lagoon®) designed by our Group company Morinaga Engineering Co., Ltd. to clean wastewater after use and return it to nature.
The facilities use what is called the activated sludge method, where microorganisms consume and remove the nutrient content of wastewater, and enable the discharge of clean treated water with the activated sludge separated by gravity.

Initiatives for water resource conservation

A wide range of biodiversity conservation activities are held at many business sites in Japan, including community clean-up drives around sites, greenification projects and picking up trash.
Activities conducted at the Tama Site and Fuji Plant/Fuji Morinaga Milk Industry are highlighted here as examples of these initiatives.
Employees at the Tama Site (Tokyo Tama Plant, Yamato Plant, Chilled Products Coordination Center - East Japan) took part in the Karabori River Clean-up organized by NPOs and civic groups.
Karabori River runs through Higashiyamato City where the Tama Site is located, and separate upstream and downstream clean-up activities are held regularly for environmental conservation and animal protection.
Employees from the Fuji Plant and Fuji Morinaga Milk Industry participated in the Mt. Fuji Clean-up Project (clean-up activity) organized by the Mt. Fuji network.
This project involves cleaning up the foothills of Mt. Fuji, with the aim of becoming the cleanest mountain in Japan.

  • Karabori River Clean-up

  • Mt. Fuji Clean-up Project

Related links

Biodiversity Policy

Resources and the Environment

Sustainable Raw Material Procurement

In addition to working to resolve environmental and social issues that affect the supply chain, we will achieve a sustainable supply chain through continuous support for the resolution of suppliers' issues.

Most of Morinaga Milk products' raw materials, including milk, come from nature’s rich bounty of agricultural products.

These products, too, have been greatly affected by climate change in recent years. We recognize that efforts throughout the supply chain, including support for dairy farmers and collaboration throughout the dairy industry, are needed to achieve sustainable procurement.

Looking ahead, we will achieve a sustainable supply chain as we work to resolve environmental and social issues affecting the supply chain and offer continuous support for the resolution of suppliers' issues.

Examples of recognized risks and opportunities

Risks
  • Destabilization of raw material procurement and decline in trust due to lagging action on environmental issues such as climate change and social issues such as human rights violations
  • Decline in raw milk volume due to decline in dairy farmers, and stagnation of production and development due to depletion of existing raw materials
Opportunities
  • Strengthening of supply chain sustainability through collaboration with dairy farmers and other suppliers and partner companies
  • Strengthening of business competitiveness through supply chain management with consideration for the environment and human rights ・ Gaining the trust of partners and customers

Main actions

  • Procurement of sustainable raw materials including RSPO certified palm oil and FSC certified paper
  • Support for dairy farmers and raw material suppliers through provision of equipment, etc.
  • Development of industry-wide support programs
  • Measures to address procurement risks for major raw materials
Related SDGs
sdg 1
sdg 8
sdg 12
sdg 15
sdg 17

Targets for FY 2030

Rate of transition to RSPO mass balance certification
(by FY 2028)
100%

Intermediate target
(by FY 2023)
80%
Usage ratio of FSC-certified or other environmentally friendly paper
(by FY 2024)
100%
Expansion of support for raw material suppliers

Topics

Aiming to Create a Sustainable Dairy Industry

Aiming to Create a Sustainable Dairy Industry

The Morinaga Milk Group is engaged in research and development of dairy farming technologies, including the development of excreta treatment equipment that also contributes to the reduction of methane gas, and multifaceted support for dairy farmers through direct visits.
Nutritious and affordable milk and dairy products are indispensable for a healthy life as they provide high-quality protein and minerals such as calcium.Dairy cows that produce raw milk can use grass that we cannot use for food as feed.
In this way, dairy farming has not only contributed to the local economy as a key industry in agricultural areas but has also contributed to society by contributing to the conservation of biodiversity and the natural environment.On the other hand, there is a growing interest in environmental issues caused by methane gas emitted from cattle food and animal welfare. Dairy farmers face various challenges, such as a decrease in the number of dairy farmers due to a shortage of workers and successors, and a rise in energy costs and feed prices.
We believe that these issues need to be addressed not only by dairy farmers but also by the milk industry, which greatly benefits from raw milk, and that efforts to foster understanding involving the supply chain need to be made as a unified effort.

Raw Milk Procurement Framework in Japan and Traceability of Morinaga Milk Group

In Japan, raw milk is not procured through direct contracts with dairy farmers. Most raw milk distribution is done through agricultural cooperatives and producer associations.
Information at each stage of raw milk distribution is collected and managed through a system, ensuring 100% traceability of raw milk until it is delivered to the factories of dairy manufacturers.

Picture of Raw Milk Procurement Framework

The Morinaga Milk Group also sells milk that shows the faces of producers.
Focusing on the fact that dairy farmers in Biei, Hokkaido produce some of the highest quality raw milk in Hokkaido, Hokkaido Premium Biei Milk is a milk featuring a high degree of traceability allowing you to see the faces of the producers, and is also used as milk for school lunches for elementary and junior high school students in the Biei area.

Topic
Visits by Nationwide Dairy Farm Services Office staff to dairy farmers in their area

To ensure a stable supply of high-quality and delicious domestic milk, the dairy farming management that supports raw milk production must be sustainable.

Morinaga Milk Group works closely with dairy farmers in raw milk–producing regions around Japan and collaborates with dairy associations and other partners to carry out initiatives that support dairy farming.

By visiting dairy farmers on a regular basis to provide information on milk quality improvement technologies, raw milk supply and demand, and other topics, we seek to enhance dairy farmers' motivation, directly listen to farmers' problems and concerns, consider improvement measures, and otherwise tackle problem solving together.

Topic
Initiatives with dairy producers to increase milk production

Dairy cows take at least two years after birth to start producing milk, which is a period that places a burden on dairy farm management and contributes to sluggish domestic raw milk production.

In response, the dairy farms of Group company Morinaga Rakunou Co., Ltd., under the motto "Raising healthy and strong cattle," take in dairy heifers from farmers to allow the farmers to focus on raw milk production.

This business temporarily accepts heifers that will become milking cows, breeds them, and returns them to the dairy farmers, helping reduce burdens on farmers as a dairy farming outsourcing service.

Morinaga Milk is also active in using advanced technology for the production and transplantation of fertilized eggs to transfer fertilized eggs from wagyu Japanese beef cows into dairy cows, as a means of increasing the incomes of dairy farmers.

Topic
Initiatives for Solving Sustainability Issues

In recent years, methane gas emitted from cows has become a new issue for dairy farming.
The Morinaga Milk Group is moving forward with the following initiatives for solving sustainability issues related to dairy farming.

Initiatives to Reduce Methane Gas Emissions

"MO-Lagoon for Dairy", a manure processing system for dairy farming and livestock farming that combines livestock biomass power generation and wastewater treatment, has been introduced at Nasu-gakuroku Farm (operation started in March 2023), which is operated by Morinaga Dairy Service Co., Ltd., a subsidiary of the Morinaga Milk Group.
We aim to reduce methane emissions from Group ranches by up to 30% by recovering and effectively using the gas to create power at biogas plants.

Climate Change Mitigation and Adaptation "Topic: Efforts to Reduce the Environmental Impact of Milk Production and Strengthen the Milk Production Base"

Procurement with consideration for the environment and human rights

Morinaga Milk Group strives to procure raw materials with consideration for the environment and human rights, based on our Procurement Policy.

Initiative with raw materials

Sustainable Palm Oil
The Morinaga Milk Group joined RSPO(*1) in March 2018 with the aim of using sustainable palm oil, and has been further increasing use of palm oil that has been verified for consideration of biodiversity and the livelihoods of local people. In April 2019, with the goal of resolving issues in environmental and development aspects of palm oil production and of accelerating the procurement and consumption of sustainable palm oil in the Japanese market, Morinaga Milk joined the Sustainable Palm Oil Network (JaSPON) as a founding member and was appointed director.

Morinaga Milk has been promoting the purchase of Book and Claim palm oil since 2018, and has purchased 100 percent of the needed palm oil this way from FY 2019 to FY 2021.
Our head office and three plants acquired Supply Chain Certification for meeting the requirements stipulated for RSPO an external certification institution, with the view to increasing use of Mass Balance certified oil from FY 2022 and onward.
We will acquire more certification for our plants in Japan from FY 2023 and on for increasing the use of Mass Balance certified oil.

FSC®-certified environmentally friendly paper
For all paper sleeves and packaging boxes for ice cream products and for all paper and aluminum containers used for beverages and tofu, we use FSC®-certified(*2) paper.
We will be switching over and contributing to sustainable forest management to achieve 100% FSC®-certified environmentally friendly paper in FY 2024.

Rainforest Alliance certification
The Mt. RAINIER Deep Espresso of the Mt. RAINIER series of coffee beverages uses 100% Rainforest Alliance Certified(*3) coffee beans.

(Left) Mt. RAINIER Deep Espresso, made with Rainforest Alliance-certified coffee beans
(Right) MOW ice cream, using FSC certified paper sleeve
Initiatives with Suppliers

The Morinaga Milk Group, together with its suppliers, has established the Procurement Policy to ensure that procurement activities are conducted in compliance with laws and social standards while also considering human rights, the environment, and other social responsibilities, and is working to prevent and mitigate risks. In March 2022, we formulated Supplier Guidelines and are working together with our suppliers to address environmental and social issues and to build a sustainable supply chain.

Supplier Risk Assessment

We conduct CSR procurement questionnaire (*4) survey every three years for suppliers to monitor risks related to human rights, the environment, corporate governance, etc. Based on the results of the survey, we respond in various ways, including conducting interviews with suppliers who have concerns about sustainability or compliance.According to the results of the CSR Procurement Questionnaire collected in FY 2022, there were no suppliers with concerns about sustainability or compliance.

Results of CSR Procurement Questionnaire survey
2019: 181 companies / 100% collection rate
2022: 196 companies / 92.5% collection rate

On-site observations of suppliers

We make visits to farms and processing plants to check the state of quality control for produced raw materials, and also to hear about environmental considerations and the status of the working environment and human rights protection for workers.
In 2019, we visited three aloe farms and aloe processing plants at two companies producing aloe used in Morinaga Aloe Yogurt. No particular problematic environmental or human rights conditions were identified during the visits.

Supplier Training

Explanatory meetings are held for suppliers when CSR Procurement Questionnaire surveys are conducted to deepen their understanding of the Group's Procurement Policy and Supplier Guidelines.
In addition, we share social and environmental sustainability issues, communicate the Group’s Sustainability Medium- to Long-Term Plan 2030, and ask for cooperation in building a sustainable supply chain.
Morinaga Milk also holds a Quality Improvement Seminar with suppliers of raw materials once a year. This provides an opportunity for mutual communication while sharing information on understanding the quality assurance system and initiatives for maintaining and upgrading the quality of raw materials and their containers and packaging and for improving the hygiene environment.

Morinaga Milk Group Joins Sedex

We aims to build a sustainable supply chain and is promoting responsible procurement initiatives.
As part of these efforts, we joined Sedex, the world’s largest supplier ethical information sharing platform, in 2023.
Starting in FY 2024, we will ask suppliers to complete an SAQ (self-assessment questionnaire).

Related links

Quality and Safety

*1 Roundtable on Sustainable Palm Oil. RSPO certifies palm oil produced on farms that meet certain standards to prevent palm oil production from having a profoundly negative impact on the preservation of tropical forests, the biodiversity of living things in the forests, and the lives of the people who depend on the forests.

*2 An international certification program for protecting forests. Certification is given only after examination by third-party certification bodies according to Forest Stewardship Council (FSC) criteria to verify that forest resources used have been appropriately produced from the perspective of environmental preservation and under socially meaningful and economically sustainable forest management, or other raw materials used lead to appropriate use of forest resources.

*3 Rainforest Alliance Certified farms undertake actions including forest and ecosystem protection, soil and waterway conservation, and improvement of the working environment, livelihoods, and human rights of farm workers, while also meeting rigorous standards, to create a better future for people and nature. See ra.org for details.

*4 The CSR procurement questionnaires use the CSR Sustainable Procurement Self-Assessment Tool Set created by Global Compact Network Japan.