Sustainability Management Promotion System

To achieve sustainability management, the Morinaga Milk Group is aiming to resolve social issues through its businesses based on the approach that it is crucial that all employees make sustainability initiatives a matter of personal responsibility.

We are taking a two-pronged approach to tackle issues from a long-term perspective—we formed the Sustainability Committee as the driving system toward promoting efforts of the Sustainability Medium- to Long-Term Plan 2030, which sets 2030 as the target year to achieve common objectives of the Group; and we are making sustainability a personal responsibility through sustainability activities at business sites that applies to workplaces at all sites around Japan.

Management

Sustainability Committee

The president serves as committee chair, the head of the Sustainability Division serves as the vice-chair, internal directors and division managers serve as committee members, and the Sustainability Promotion Department acts as secretariat. In addition to regular committee meetings held every six months, the Climate Change Subcommittee, Plastics Subcommittee, and other subcommittees have been established.

The committee has formulated a roadmap aimed at the integration of business and sustainability activities, in order to resolve social issues through our products, services, and activities while growing sustainably with society. Based on this roadmap, we undertake and manage activities, and hold discussions.

The content of discussions is reported to the Board of Directors.

Management

Matters to be discussed and content of discussions

Matters to be discussed
  • Proposals for our management policies from a sustainability perspective
  • Ideals aimed at achieving our Corporate Philosophy and 10-Year Vision
  • Response to sustainability-related environmental and social issues surrounding our company
  • Progress reports on Priority Issues
  • Progress reports and topics from subcommittees
  • Monitoring of the effectiveness of policies
  • Content of communication with stakeholders
  • Environmental- and social issue-related partnerships with industry groups and other companies in the industry
  • Construction and development of an in-house promotion system for sustainability management

Content of recent discussions

Second discussion in FY 2023 (November 2023)

  • Trends in sustainability activities (presentation by an outside expert)
  • Sustainability information disclosure
  • April to September progress report on Sustainability Medium- to Long-Term Plan 2030
  • Group policies
  • Climate change initiatives
  • Plastic measures
  • Human rights issues
  • Wellbeing
  • Sustainability activities at business sites

First discussion in FY 2023 (April 2023)

  • Progress report on Sustainability Medium- to Long-Term Plan 2030 for the previous fiscal year
  • ESG third party evaluation
  • Measures to address climate change
  • Initiatives for plastics
  • Human rights issues
  • Sustainability activities at business sites
  • Sustainability activities at global business sites

Second discussion in FY 2022 (October 2022)

  • Status of promoting sustainability management (sustainability education, disseminating information, etc.)
  • April to September progress report on Sustainability Medium- to Long-Term Plan 2030
  • Measures to address climate change
  • Initiatives for plastics
  • Human rights issues
  • Sustainability activities at business sites
  • Investors' meetings related to sustainability and ESG

First discussion in fiscal 2022 (April 2022)

  • Final report on ESG performance toward Previous Medium-term Management Plan
  • The Medium- to Long-Term Sustainability Plan starting in April 2022
  • ESG briefing sessions
  • Climate Change measures
  • Plastic measures
  • Human rights issues

Sustainability activities at business sites

The Group is focusing efforts on sustainability activities at business sites with the aim of making sustainability the personal responsibility of all employees through coexistence with local communities as well as communication and contribution with stakeholders.

Sustainability Promotion Leaders
In 2021, we appointed Sustainability Promotion Leaders at 80 business sites of domestic Group companies to help promote sustainability activities at those sites.
Under the supervision of heads of sites responsible for promoting activities, these Promotion Leaders set and implement various topics related to sustainability activities at their own business sites.

Sustainability Forum
The Sustainability Forum is held twice a year to provide the opportunity for Promotion Leaders around Japan to get together and impart their knowledge on promoting activities with one another for the benefit of all.

Sustainability Awards
A Sustainability Awards category was also created in the Morinaga Milk Awards internal awards systems held once a year.
Sustainability Awards recognize independent efforts exerted by business sites for contributing to local communities or environmental conservation, with selected sustainability activities lauded company wide as positive examples and shared with other sites.

Sustainability education for employees

To ensure that everyone at the Morinaga Milk Group makes sustainability their own personal responsibility, educational courses are provided at all Group companies to help foster understanding of sustainability, SDGs and the Sustainability Medium- to Long-Term Plan 2030.
Video content and e-Learning is provided to all Group employees, with 96.4% taking e-Learning courses in FY 2022.

Participatory workshops for employees and study sessions are also held at business sites in Japan to help foster understanding of Sustainability Medium- to Long-Term Plan 2030. In FY 2022, study sessions were held at 58 out of 80 domestic business sites, and at two sites overseas.

Sustainability Promotion Department

The committee is composed of the Planning Group, the Promotion Group, and the Environmental Management Group. The responsibilities of each group are as follows.

Planning Group

Planning and drafting of the Medium- to Long-Term Sustainability Plan, operations for the Sustainability Committee, disseminating sustainability information inside and outside the company, and planning, implementing and promoting measures to improve the corporate culture and organizational climate

Environmental Management Group

Planning and promotion of company-wide environmental measures, general planning for environmental strategies, and operation and management of the ISO 14001 environmental management system

Methods for Identifying Priority Issues

Through analysis of the risks and opportunities facing management and business, and through evaluation of priorities from the perspective of stakeholders, we identified issues (materiality) that should be given priority. We will continue to regularly review and revise these Priority Issues to meet changes in the environment.

Management

Targets

In our Medium- to Long-Term Sustainability Plan that begins in FY 2022 and ends in 2030, we set action targets centered on the Seven Priority Issues.

See the Data Book for sustainability targets and achievements in the previous Business Plan for the Next Medium Term.

Data Book Targets and Achievements in FY 2020

Priority Issues KPI FY 2022
Performance
FY 2024
Intermediate Target
FY 2030
Target
Food and Wellness Contribution to Wellness Net sales of products with consideration for health issues (compared to FY 2021) ※1 ※3 1.1-fold 1.2-fold 1.7-fold
Increase in the number of published research papers on health and nutrition
(including patent applications)
Number of published research papers: 47
  • Increased R&D Division personnel to enhance the R&D function.
  • Promoted R&D related to health and nutrition.
Participants in health promotion and nutrition education activities
(FY 2021 to FY 2030) ※3
FY 2022: Approximately 106,000
Cumulative total: 165,000
Total 350,000 Total 1,000,000
Increase our image as a company that contribute to health (Corporate brand image survey ※2) 17.9% - 25%
Food safety and reliability Acquisition of FSSC22000 and other GFSI certification standards at all group manufacturing sites ※3 93%

*Acquisition rate at the domestic manufacturing sites: 100%

Maintenance/strengthening of certification at all domestic manufacturing sites Acquisition/maintenance of certification at all Group manufacturing sites
Enhancement of traceability mechanisms that ensure safety and reliability which customers expect Promoted systematization of traceability
Continuation of zero quality-related incidents and initiatives to ensure compliance with laws and regulations
  • Implemented supplier audits
  • Implemented quality audits when new suppliers were adopted
Resources and the Environment Mitigation of and adaptation to climate change Scope 1 + 2 CO₂ emissions reduction rate
(compared to FY 2013)
23% 23% or higher 38% or higher
Scope 3 GHG emissions reduction rate
(compared to FY 2020)
10% 3% or higher 10% or higher
Percentage of sites formulating BCPs to address climate change ※3 100%

*Only manufacturing sites in Japan directly operated by Morinaga Milk Industry Co., Ltd.
In the future, we will formulate a Business Continuity Plan (BCP) for domestic and overseas consolidated subsidiaries focusing on climate change.

100%
Environmental consideration and resource recycling ISO14001 certification maintenance rate at domestic manufacturing sites 96% certification acquisition rate at the domestic manufacturing sites Completion of certification acquisition at domestic manufacturing sites 100%
Petroleum-derived virgin plastic usage reduction rate
(compared to FY 2013)
22.9% 10% or higher 25% or higher
Industrial waste recycling rate
(zero emissions)
99.3% 99% Achievement of zero emissions
Water resource usage reduction rate 14.1% 11% or higher 15% or higher
Maintain and improve water quality of wastewater Conducted periodical inspections of wastewater treatment facilities at manufacturing sites to maintain appropriate wastewater treatment, and increased the capacity of facilities to address production increase
Rate of accommodation of environmentally friendly design in major brands Scheduled to be disclosed in FY 2024 - 100%
Sustainable raw material procurement Rate of transition to RSPO mass balance certification 22.8% 80%
(by FY 2023)
100%
(by FY 2028)
Usage ratio of FSC-certified or other environmentally friendly paper 30.4% 100% -
Expansion of support for raw material suppliers Introduced “MO-Lagoon for Dairy,” a manure processing system for dairy at the Nasu Gakuroku Dairy Farm
People and Society Respect for human rights and diversity Compliance with our Human Rights Policy throughout the supply chain
  • Implemented the human rights risk assessment and impact assessment in the process of human rights due diligence
  • Became a member of Japan Center for Engagement and Remedy on Business and Human Rights (JaCER) to build a grievance mechanism
Human rights due diligence execution and measures; construction of continuity system Continuous compliance
Ratio of Female Managers 5.8% 10% or higher
(by FY 2026)
20% or higher
Childcare leave usage ratio (men) 90.5% - 100%
Turnover for elderly care 1 people 0 people
Number of major work-related accidents 0% 0 (continued)
Employee engagement ratings A
Amount of investment in human resource development ¥31,000/person/year - ¥40,000/person/year
Coexistence with local communities Total number of participants in community activities at business sites ※3 FY 2022: 5,927
Cumulative total: 9,559
37,000 100,000 (from FY 2021)
Ratio of Group business sites carrying out community activities ※3 100% in Japan 100% in Japan 100% in Group

*1 Products listed in "Topics: Product design with consideration for health issues"
*2 Morinaga Milk Industry's own consumer survey. "Health contribution image" is 15% in FY 2021.