Sustainability Management Promotion System
To achieve sustainability management, the Morinaga Milk Group is engaged in corporate activities and on-site activities with the objective of ensuring both the resolution of social issues and the improvement of profitability based on the approach that it is crucial that each and every employee makes sustainability initiatives a matter of personal responsibility.
In addressing issues from medium- to long-term perspective, we are promoting corporate activities and on-site activities viewing them as the two wheels of an axis, aiming at an early realization of sustainability management. In the aspect of corporate activities, we are promoting he Sustainability Medium- to Long-Term Plan 2030, which sets the FY 2030 as the target year to achieve common objectives of the Group. In the aspect of on-site activities, we are encouraging employees to make sustainability their own personal responsibility through sustainability activities at business sites that applies to workplaces at all sites of the Group.
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.
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 2024 (October 2024)
- Revision of sustainability management
- April to September progress report on Sustainability Medium- to Long-Term Plan 2030
- Supplier management
- Climate change initiatives
- Plastic measures
- Human rights issues
- Wellbeing
- Sustainability activities at business sites
First discussion in FY 2024 (May 2024)
- Wellbeing that should be addressed by companies (presentation by an outside expert)
- ESG third party evaluation
- Progress report on Sustainability Medium- to Long-Term Plan 2030 for the previous fiscal year
- TNFD
- Climate change initiatives
- Plastic measures
- Human rights issues
- Wellbeing
- Sustainability activities at business sites
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
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 92.4% taking e-Learning courses in FY 2023.
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 addition, in FY 2023, we visited 26 domestic business sites in-person to provide explanations about the Sustainability Medium- to Long-Term Plan 2030, and exchanged opinions.
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.
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.
In addition, we have changed some materiality themes and materiality names to broaden the scope of our efforts from FY 2025. We have also revised target values and expanded the scope of some targets to include the consolidated Group, including overseas subsidiaries.
See the Data Book for sustainability targets and achievements in the previous Business Plan for the Next Medium Term.
| Priority Issues | KPI | FY 2023 Performance |
FY 2022 Performance |
FY 2024 Intermediate Target |
FY 2030 Target |
|
|---|---|---|---|---|---|---|
| Food and Well-being | Contribution to Well-being | Net sales of products with consideration for health issues (compared to FY 2021) ※1 | 1.1-fold | 1.1-fold | 1.2-fold | 1.7-fold |
| Participants in health promotion and nutrition education activities (FY 2021 to FY 2030) |
FY 2023: Approximately 126,000 Cumulative total: 291,000 |
FY 2022: Approximately 106,000 Cumulative total: 165,000 |
Total 350,000 | Total 1,000,000 | ||
| Promote research and development that safely and reliably leads to the creation of high-quality products that contribute to the health and nutrition of consumers | - | - | ||||
| Improve our image as a company that contribute to health (Corporate brand image survey ※2) | 13% | 17.9% | - | 25% | ||
| Improve our image as a supplier of products that provide tastiness and delightfulness (Corporate brand image survey ※3) |
20.2% | - | - | 30% | ||
| Food safety and reliability | Acquisition of FSSC22000 and other GFSI certification standards at all Group manufacturing sites※4 | 100% |
93% *Acquisition rate at the domestic manufacturing sites: 100% |
Maintenance/strengthening of certification | Acquisition/maintenance of certification | |
| Number of serious quality-related incidents | - | - | 0 | |||
| Resources and the Environment | Mitigation of and adaptation to climate change | Scope 1 + 2 CO₂ emissions reduction rate (compared to FY 2013) |
27.5% | 23.0% | 23% or higher | 50% or higher |
| Scope 3 GHG emissions reduction rate (compared to FY 2020) |
9.9% | 10.0% | 3% or higher | 10% or higher | ||
| Percentage of sites formulating BCPs to address climate change ※5 | 100％ *Only manufacturing sites in Japan directly operated by Morinaga Milk Industry Co., Ltd. In the future, we will formulate business continuity plans (BCPs) for domestic and overseas consolidated subsidiaries focusing on climate change. |
100％ *Only manufacturing sites in Japan directly operated by Morinaga Milk Industry Co., Ltd. |
100% | |||
| Environmental consideration and resource recycling | ISO14001 certification maintenance rate at domestic manufacturing sites | 96% *Progress rate toward 100% completion of certification acquisition 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) |
25.6% | 22.9% | 10% or higher | 25% or higher | ||
| Industrial waste recycling rate (zero emissions) |
99.4% | 99.3% | 99％ | Achievement of zero emissions | ||
| Water resource usage reduction rate | 16.6% | 14.1% | 11% or higher | 15% or higher | ||
| Rate of accommodation of environmentally friendly design in major brands | Scheduled to be disclosed in FY 2024 | Scheduled to be disclosed in FY 2024 | - | 100% | ||
| Sustainable raw material procurement | Rate of transition to RSPO mass balance certification | 45% | 22.8% | 80% |
100% |
|
| Usage ratio of FSC-certified or other environmentally friendly paper | 93.6% | 30.4% | 100% | - | ||
| Expansion of support for raw material suppliers | - | - | 100s deployment of supplier support tools | |||
| Increase the number of initiatives aimed at enhancing the value of dairy industry | - | - | 500% | |||
| People and Society | Respect for Human Rights and Enhancement of Well-being | Ongoing implementation of initiatives to raise respect for human rights※6 | Continuously implemented human rights impact assessment (global business sites: 1, supplier: 1) |
|
Human rights due diligence execution and measures; construction of continuity system | Ongoing compliance |
| Ratio of Female Managers | 6.3% | 5.8% | 10% or higher |
20% or higher | ||
| Childcare leave usage ratio (men) | 95.8% | 90.5% | - | 100% | ||
| Strengthen health management initiatives aimed at achieving "White 500 certification" status | - | - | Morinaga Milk Industry: maintain certification as Health & Productivity Management Outstanding Organization Domestic consolidated subsidiaries: promote certification of Health & Productivity Management Outstanding Organization |
|||
| Number of major work-related accidents | 0% | 0% | 0 (continued) | |||
| Employee engagement ratings | B | - | BBB (by FY 2028) |
A | ||
| Amount of investment in human resource development | ¥34,000/person/year | ¥31,000/person/year | - | ¥50,000/person/year | ||
| Coexistence with local communities | Number of participants in community activities at each business site (FY 2021 to FY 2030) |
FY 2023: Approximately 9,640 Cumulative total: 19,199 |
FY 2022: 5,927 Cumulative total: 9,559 |
Total: 37,000 | Total: 100,000 (from FY 2021) | |
| Ratio of Group business sites carrying out community activities | 100% in Japan | 100% in Japan | 100% in Japan | 100% in Group | ||
*Some initiatives will be tallied after FY2025.
※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.
※3 Morinaga Milk Industry's own consumer survey. Image as a company that provides deliciousness and pleasure through our products was 20.2% in FY 2023.
※4 However, manufacturing sites that receive entrustment from our clients, and apply special quality control systems designated by such clients are exempted from the application.
※5 Percentage of sites performing BCP compliance (preparing BCPs, etc.)
※6 Compliance with human rights policy, conduct human rights due diligence(DD), and creation of grievance mechanism.