Home > The Morinaga Group’s Sustainability > Sustainable Management > Sustainable Management

Sustainable Management
Practicing Sustainable Management

The Morinaga Group’s
Sustainability

Fiscal 2021 marks the launch of the Morinaga Group’s 2030 Vision, a long-term management plan to achieve theSustainable

Group’s ideals for 2030, aimed at attaining growth and greater corporate value through management based on a

Management

long-term perspective. Today, as the world faces various social issues and drastically changing conditions, calls for

Sustainable Management

the establishment of a sustainable society are growing. The Morinaga Group will address these changes, basing

Stakeholder Engagement

all of our corporate activities on our mission statement, which expresses our corporate purpose: “The Morinaga

Sustainability Policies ＆Group will continue to create healthy foods that can be enjoyed beyond generations, thereby bringing smiles to the

Guidelines

faces of people around the world now and in the future.” On this foundation we will pursue sustainable
management that integrates both financial and non-financial management issues of importance toward theEnvironmental

achievement of our 2030 Vision, which states that “The Morinaga will change into a wellness company in 2030.”

Initiatives

Sustainability Promotion Framework

Environmental Management
Environmental Load
Generated by Business
Activities

In April 2021, we established the Sustainable Management Department to serve a company-wide, cross-Realization of a Low-Carbon

organizational function as part of the framework created for corporate efforts toward sustainability. We will also

Societyestablish an ESG Committee chaired by the president to discuss, from the perspectives of the environment,

Creating a Circular Economy

society, and governance, agenda items that need to be addressed toward the achievement of continuous business

Environmentally-friendly

activities and a sustainable society, and pursue sustainable management on a company-wide basis.

Packaging Materials
Initiatives to Resolve
Environmental
Pollutants
Initiatives for Biodiversity
Effective Use of Water
Resources
Environmental Accounting

Social Contributions
Together with Customers
Together with Children
Collaboration with Social
Groups/Non-affiliate
Companies/Organizations
Together with Employees

GovernanceCorporate GovernanceCompliance
Risk Management
Respect for Human Rights

Initiatives ofContribution to the Achievement of the Sustainable Development
Goals (SDGs)

Sustainable Raw
Material Procurement
Medium-term Goal for
Sustainable Raw MaterialIn 2015, Sustainable Development Goals (SDGs) was adopted at the UN Sustainable Development Summit. The

Procurement

SDGs consist of 17 global common goals that should be achieved through the collaboration of the entire
international community by 2030. We, the Morinaga Group, are committed to achieve the SDGs goals throughGRI Standards Index

business activities to contribute to the realization of a sustainable society.

CSR Report
ESG Data

Basic CSR Policies

In accordance with the MORINAGA Group’s vision of “Delicious, Fun, and Healthy”, we
aim to resolve various social issues and realize a sustainable society through “food”,
promoting CSR activities in coordination and cooperation with stakeholders.

1. Providing Value through "Food"
As a business that delivers food to consumers, we not only pursue food safety andreliable food quality, but also provide our customers with value through food that
contributes to “Deliciousness, Fun, and Health” for both the mind and body.

2. Nurturing the Next Generation
We support the healthy growth of children, who are the leaders of the future, thereby
contributing to the development of the next generation.

3. Consideration for the Global Environment and Society
We are considerate of the global environment and of society, aiming towards thecreation of a recycling society and sustainable supply chains.

In accordance with the Morinaga Group’s vision of “Delicious, Fun, and Healthy”, we aim to resolve various social
issues and realize a sustainable society through “food,” promoting CSR activities in coordination and cooperation
with stakeholders.

Providing Value through Food
Providing Products that Contribute to Healthy and Happy
Lifestyle
As a business that delivers food to consumers, we not only pursue food safety and reliable food quality, but also
provide our customers with value through food that contributes to the “Deliciousness, Fun, and Health,” for boththe mind and body.
As a way to make a social contribution through products, we offer products that meet diverse needs, including
products designed to support dietary habits in our busy modern days, as well as products that help people lead ahealthy life. We are also facilitating communication with our customers based on the inquiries, opinions, andrequests received by the Customer Service Center.

Providing Value through Food Providing Products that Contribute to Healthy and Happy Lifestyle
Together with Customers

Educating the Next Generation
We support the healthy growth of children, who are the leaders of the future, thereby contributing to thedevelopment of the next generation.
We provide food education experiences, nature explorations, and sports experiences based on the basic principleof “aiming to nurture children’s healthy physical and mental development” through hands-on experiences.

Together with Children

Consideration for the Global Environment/Society
We are considerate of the global environment and society, aiming towards the creation of a recycling society andsustainable supply chains.
We continuously improve our environmental management system through, for example, environmentallyconscious product development and initiatives to reduce CO2 emissions, promote the reduction of waste
emissions and recycling, encourage the management and reduction of environmental pollutants, and preserve
biodiversity.

Environmental Initiatives

The Process for Reviewing Our CSR Basic Policy andCSR System
In the aim of incorporating society’s demands and expectations for the Morinaga Group into management andsteadily promoting CSR in a Group-wide manner toward the achievement of a sustainable society, we reviewed
our former CSR Basic Policy and CSR System and established a new Policy and a System Diagram in FY2019/3.
From FY2019/3 through FY2020/3, we held CSR training sessions for employees at the headquarters, branches,factories, and the R&D center to embed the Policy into the organization.
In conjunction with the review of the CSR Basic Policy and the CSR System, we revised our Environmental Policy,
and formulated the Human Rights Policy and the Procurement Policy in FY2019/3.

Morinaga Group Environmental Policy
Morinaga Group Human Rights Policy
Morinaga Group Procurement Policy

Process to Develop the CSR Basic Principles and System Chart
To draw up the CSR Basic Principles and the CSR System Chart, we listened to the opinions of various
stakeholders to thoroughly understand external demands and social challenges. We spent about a year to explore
and carefully discuss how the Morinaga Group’s CSR Basic Principle should be.

Planning Process
In the planning process, there are roughly five steps prior to final determination: (1) Analysis of matters requested
by external institutions, (2) Conducting of stakeholder surveys, (3) Holding of interviews with internal relevant
divisions, (4) Holding dialogues with experts, and (5) Approval at the CSR Committee.

STEP1: Analysis of matters requested by external institutions (August 2017)
In light of the international guidelines related to sustainability and social issues considered important by CSR
evaluation institutions, we grasped the external request items to corporations, as well as sorted through strengths
and weaknesses of the Morinaga Group.

STEP2: Conducting of stakeholder surveys (September 2017)
To understand stakeholders’ expectations and requests of the Morinaga Group, we implemented a questionnaire
about the Morinaga Group's CSR to customers, employees, and business partners. A total of 872 people,
including 240 customers, 606 employees, and 26 business partners provided various opinions.

STEP3: Holding of interviews with internal related divisions (December 2017)
By sorting out questionnaire results and external request items, we interviewed CSR-related divisions to organize
the internal efforts and extract challenges. This helped clarify the issues to address in the future, promote thedisclosure of ESG information, and make the importance of fostering the awareness of CSR within the company ashared awareness.

STEP4: Holding dialogues with experts (January 2018)
We asked experts for their opinions about how the Morinaga Group should promote its CSR activities. Our board
members talked about the health and productivity management and brand strengths. Participants actively
exchanged opinions across various areas.

Decision: Approval at the CSR Committee to establish the CSR System (May2018)
By taking into the results of initiatives from step one to four and the details comprehensively, we translated theideal CSR for the Morinaga Group into the CSR Basic Principles and the System Chart, which were officiallyestablished after approval at the CSR committee.

Home > The Morinaga Group’s Sustainability > Sustainable Management > Stakeholder Engagement

Stakeholder Engagement
Basic Concept

The Morinaga Group’s
Sustainability

The Morinaga Group attaches great importance to the stakeholder engagement, for which opinions and requests

Sustainable

are received from various stakeholders through communication with them, and then reported to the management

Management

team so that they can utilize the feedback in the management and corporate activities.

Sustainable Management

We communicate with our stakeholders actively and regularly, striving to contribute to the achievement of a

Stakeholder Engagement

sustainable society.

Sustainability Policies ＆Morinaga Group’s Stakeholders

Guidelines

Environmental
We recognize six groups of stakeholders who surround the Morinaga Group, that is, customers, employees,

Initiatives

clients/business partners, shareholders/investors, local community, and the global environment.

Environmental Management
Environmental Load
Generated by Business
Activities
Realization of a Low-Carbon
Society
Creating a Circular Economy
Environmentally-friendly
Packaging Materials
Initiatives to Resolve
Environmental
Pollutants
Initiatives for Biodiversity
Effective Use of Water
Resources
Environmental Accounting

Social Contributions
Together with Customers
Together with Children
Collaboration with Social
Groups/Non-affiliate
Companies/Organizations
Together with Employees

GovernanceCorporate GovernanceCompliance
Risk Management
Respect for Human Rights

Initiatives of
Sustainable Raw
Material Procurement
Medium-term Goal for
Sustainable Raw MaterialCustomers

Procurement

GRI Standards Index
CSR Report
ESG Data

Employees

Business partners

Shareholders/investors

Local community

Global environment

Topics：
Communication with Shareholders and Investors
In addition to annual general meetings of shareholders and biannual financial results briefings, we provide various
opportunities to communicate with shareholders, investors, and securities analysts, with the aim of helping thembetter understand our business.
In FY2020/3, we started an email service to provide shareholders and investors with Morinaga’s IR information,
including IR meetings in the US and the UK, individual meetings by President Ota, small meetings for sell-side
analysts, and the latest timely-disclosure information.
We also participated in the “Environmental Reporting Platform” (“ESG Dialogue Platform”), a pilot project
undertaken by the Ministry of the Environment to provide a place for communication between businesses andinvestors. In our Environmental Report for the fiscal year ended March 2019, we included our answers to the CDP
Climate Change Questionnaire 2019 to ensure more detailed information disclosure.

Home > The Morinaga Group’s Sustainability > Sustainable Management > Sustainability Policies ＆ Guidelines

Sustainability Policies ＆ Guidelines
We conduct our corporate activities while connecting with various stakeholders to

The Morinaga Group’s

realize our purpose: “The Morinaga Group will continue to create healthy foods

Sustainability

that can be enjoyed beyond generations, thereby bringing smiles to the faces ofpeople around the world now and in the future.”

Sustainable

Our basic approach and guidelines for our corporate activities are clearly statedManagementin our “Policy” and “Guidelines.”

Sustainable Management

By adhering to these principles and working together with trust earned from our

Stakeholder Engagement

various stakeholders, we aim to achieve sustainable corporate growth andSustainability Policies ＆contribute to the creation of a sustainable society, where everyone can lead

Guidelines

happy lives.
Eijiro Ota
Representative Director President

Environmental
Initiatives
Environmental Management
Environmental Load

Corporate Philosophy

Generated by Business

Code of Conduct Standards of Behavior

Activities
Realization of a Low-Carbon
Society

Sustainability Policies

Creating a Circular Economy
Environmentally-friendly

Sustainable Management

Packaging Materials

Basic CSR Policies

Initiatives to Resolve

Environment

Environmental

Environmental Policy

PollutantsSocialInitiatives for Biodiversity

Human Rights Policy

Effective Use of Water
Resources

Procurement Policy

Environmental Accounting

Quality Policy
Diversity and Inclusion Policy

Social Contributions
Together with Customers

Governance

Together with Children

Tax Policy

Collaboration with Social
Groups/Non-affiliate

Bribery Prevention Policy

Companies/Organizations
Together with Employees

Guideline
Supplier Guideline

GovernanceCorporate GovernanceCompliance
Risk Management
Respect for Human Rights

Initiatives of
Sustainable Raw
Material Procurement
Medium-term Goal for
Sustainable Raw Material

Procurement

GRI Standards Index
CSR Report
ESG Data

Home > The Morinaga Group’s Sustainability > Environmental Initiatives > Environmental Management

Environmental Management
Basic Concept

The Morinaga Group’s
Sustainability

Through our business activities, the Morinaga Group promotes the creation of a sustainable circular economy.

Sustainable

We are also continually improving our environmental management system, implementing environmentally

Management

conscious initiatives in various aspects of our business activities.

Sustainable Management
Stakeholder Engagement
Sustainability Policies ＆Morinaga Group Environmental Policy

Guidelines

Through our business activities, the Morinaga Group promotes the creation of aEnvironmental

sustainable circular economy.

Initiatives

We are also continually improving our environmental management system, implementing

Environmental Management

environmentally conscious initiatives in various aspects of our business activities.

Environmental Load
Generated by Business
Activities

1. Compliance with environment-related laws, ordinances, andRealization of a Low-Carbon

regulations, etc.

Society

We will comply with domestic and international environment-related laws, ordinances,and regulations, adhering to international standards and norms.

Creating a Circular Economy
Environmentally-friendly
Packaging Materials

2. Reduction of environmental load in all product-related processes
From the product planning and development through to production, sales, anddisposal, we will consider and strive to reduce environmental load in all productrelated processes.

Initiatives to Resolve
Environmental
Pollutants
Initiatives for Biodiversity
Effective Use of Water
Resources

3. Reduction of CO2 and other greenhouse gas emissions

Environmental Accounting

We will implement carbon management through measures such as the promotion ofenergy-saving and visualization of energy consumption amounts, endeavoring to
reduce CO₂ and other greenhouse gas emissions and prevent global warming.

Social Contributions
Together with Customers

4. Promotion of resource saving, waste reduction, and recycling

Together with Children

We will strive to use water resources, raw materials effectively, endeavoring to both
reduce waste generation amounts and promote recycling.

5. Promotion of management and reduction of environmental pollutants
We will appropriately manage harmful chemicals and other environmental pollutants,
striving to prevent and reduce pollution.

Collaboration with Social
Groups/Non-affiliate
Companies/Organizations
Together with Employees

GovernanceCorporate GovernanceCompliance

6. Biodiversity preservation and ecosystem protection
We will endeavor to deepen our understanding of biodiversity, maintain and preserve
biodiversity, and protect ecosystems.

Risk Management
Respect for Human Rights

Initiatives of(Revised in May 2018)

Environmental Management System

Sustainable Raw
Material Procurement
Medium-term Goal for
Sustainable Raw Material

The Morinaga Group plans, sets goals, and reviews important environmental policies at its CSR Committee, which

Procurement

is chaired by the President. The Environment Integration Office was established with members from theProduction Supervising Division and the Corporate Communication Division to exchange information with the

GRI Standards Index

Factory Environment Management Committee and other organs, as well as to promote continuous improvements
to our management system and to reduce the environmental load and increase productivity.

CSR Report

We have built an environmental management system centered on the ISO 14001 (international standard forenvironmental management system). In January 2018, the Morinaga Group Production Division obtained multiplesite certification.
In FY2020/3, we received five inquiries and complaints from neighbors regarding odors, noise, etc. from ourfactories. We responded promptly to these issues and took remedial measures.

• In July 1998, our Oyama Factory acquired the ISO 14001 certification for the first timein the Japanese confectionery industry.

• Later, all factories and affiliated production companies acquired the accreditation insequence.

Environmental goals and progress
Having set long-term goals for reducing CO2 and waste emissions, the Morinaga Group is working to contribute to
the realization of a low-carbon society and the formation of a circular economy.

ESG Data

Even after the achievement of our CO2 emission reduction goal in FY2015/3, we are continuously working on theemission reduction activities.
Our waste emission levels remained below set goals for the period from FY2010/3 through FY2012/3; however,since FY2013/3, the emissions have been on an upward trajectory, driving us to accelerate our efforts to achieve
the goals again.
In addition, the Morinaga Group is continuing discussions towards the formulation of environmental targets for
FY2031/3.
Realization of a Low-Carbon Society
Creating a Circular Economy

Acquired multi-site ISO 14001 certification
Previously, each production sites acquired the ISO 14001: 2004 certification individually. Simultaneously with thetransfer to a new standard ISO 14001: 2015, the Morinaga Group Production Division including the Headquarters
Environment Integration Office has obtained the multiple site certification on January 23, 2018, using the multiplesite method integrating multiple sites as one organization. For your information, Morinaga Snack Foods Co., Ltd.,
which discontinued its production in August 2019 and then was merged into Morinaga & Co., Ltd., was removed
from the registration scope when we made revisions to the registration on January 23, 2020.

Home > The Morinaga Group’s Sustainability > Environmental Initiatives > Environmental Load Generated by Business Activities

Environmental Load Generated by Business
Activities
Basic Concept

The Morinaga Group’s
Sustainability

In the course of business activities, a wide range of environmental loads are caused mainly in the productSustainable

manufacturing process, including such occasions as consuming energy, raw materials and emitting wastes.

Management

We will continue to carry out environmentally-friendly manufacturing, taking each and every environmental load

Sustainable Management

into consideration.

Stakeholder Engagement
Sustainability Policies ＆Guidelines

Environmental
Initiatives
Environmental Management
Environmental Load
Generated by Business
Activities
Realization of a Low-Carbon
Society
Creating a Circular Economy
Environmentally-friendly
Packaging Materials
Initiatives to Resolve
Environmental
Pollutants
Initiatives for Biodiversity
Effective Use of Water
Resources
Environmental Accounting

Social Contributions
Together with Customers
Together with Children
Collaboration with Social
Groups/Non-affiliate
Companies/Organizations
Together with Employees

GovernanceCorporate GovernanceCompliance
Risk Management
Respect for Human Rights(Results in FY2020/3)
Environmental Accounting

Initiatives of
Sustainable Raw
Material Procurement

Medium-term Goal for
Sustainable Raw Material
Procurement

GRI Standards Index
CSR Report
ESG Data

Home > The Morinaga Group’s Sustainability > Environmental Initiatives > Realization of a Low-carbon Society

Realization of a Low-carbon Society
Basic Concept

The Morinaga Group’s
Sustainability

By implementing carbon management measures such as promoting energy-saving and visualizing energy use, as

Sustainable

well as reducing emissions of CO2, the main greenhouse gas, Morinaga aims to realize a low-carbon society andManagement

is making efforts towards preventing global warming.

Sustainable Management
Stakeholder Engagement
Sustainability Policies ＆Guidelines

Environmental
Initiatives
Environmental Management
Environmental Load
Generated by Business
Activities*

Scope: Morinaga & Co., Ltd., Takasaki Morinaga Co., Ltd., Morinaga Angel Dessert Co., Ltd., Morinaga Dessert Co., Ltd., Aunt

Realization of a Low-Carbon

Stella Inc., Morinaga Market Development Co., Ltd., Morinaga Business Partner Co., Ltd., Morinaga Shoji Co., Ltd., Morinaga

Society

Takataki Country Co., Ltd., Morinaga Institute of Biological Science, Inc., Morinaga Finance Co., Ltd.

Creating a Circular Economy

Initiatives to Reduce CO2 Emissions

Environmentally-friendly
Packaging Materials
Initiatives to Resolve
Environmental

We are working on the reduction of CO2 emissions by measuring overall amount of emissions and promoting the

Pollutantsvisualization thereof. We set environmental goals and promote initiatives focusing on activities at factories, as CO2

Initiatives for Biodiversity

emissions are largely (75% of overall CO2 emissions) generated by Morinaga’s four factories and five affiliatedEffective Use of Water

production companies.

Resources
Environmental Accounting

Social Contributions
Together with Customers
Together with Children
Collaboration with Social
Groups/Non-affiliate
Companies/Organizations
Together with Employees

GovernanceCorporate GovernanceCompliance
Risk Management
Respect for Human Rights

Initiatives of
Sustainable Raw
Material Procurement
Medium-term Goal for
Sustainable Raw Material

Results in FY2020/3 (Domestic production facilities)
In FY2020/3, the amount of CO2 emitted from Morinaga’s four factories and five affiliated production companies

Procurement

GRI Standards Index

was 57,048 t-CO2, and the energy consumption rate per production unit was 0.467 t-CO2. This shows that we
reduced our CO2 emissions by 19.5% compared to the FY2006/3 level. Compared to the FY2019/3 level, the

CSR Reportemission amount was cut by 1.9%, and the energy consumption rate per production unit was reduced by 1.7%.
Our CO2 reduction efforts focus on the promotion of energy saving through the installation of energy saving-type
equipment, etc. The amount of CO2 emitted from over overseas production facilities in 2019 was 9,137 t-CO2.

Initiatives on CFC-using facilities
We are currently examining the possibility of replacing CFC-using facilities with those using HCFCs and HFCs,
with a low ozone depletion potential, or natural refrigerants. We intend to replace, in a planned manner, equipment

ESG Data

and devices that use CFC R-22 with those using a low-global-warming-potential refrigerant. We have also
implemented stricter measures to prevent leakage of CFC gas from existing facilities.
Morinaga Angel Dessert and Morinaga Dessert, whose product lines include frozen desserts, are proceeding withthe replacement of refrigerant-equipments in their large-sized refrigerators with natural refrigerants that has zero
ozone-depletion potential and low climate-change coefficient.

Reducing environmental load during storage and transportation
In an effort to load as many products as possible on a pallet, a platform used for product storage andtransportation, we have adjusted dimensions of cardboard cases and apply our efficient stacking pattern forloading cases onto the pallets. Furthermore, we save the use of energy in the storage and transportation
processes by designing our products to minimize the wasted space.

Initiatives for Energy Saving
Energy-saving initiatives through production systemreorganization
With a view to increasing major brands’ productivity and responding to the diversifying market needs, the Morinaga
Group is working on the reorganization of production systems and achieving high efficiency thereof.
In FY2020/3, in order to improve productivity, we decided to merge Morinaga Snack Foods Co., Ltd. and Morinaga
Kofu Foods Co., Ltd. We also closed two production bases, transferred part of their production lines to, and rebuilt
the lines in, the Tsurumi Factory and the Oyama Factory. We also constructed a third factory in the premises of
Takasaki Morinaga Co., Ltd., intending to launch by the end of FY2021/3.
In the new factory and relocated production lines, we made capital investments taking into consideration energy
saving. For example, we installed highly efficient energy-saving equipment and adopted a building design thatfeatures ceilings set lower than those of former buildings for the reduction of air conditioning loads.

Takasaki Morinaga’s Third Factory

Facilitating energy conservation promotion activities
The Morinaga Group has continuously been engaged in the activities to promote energy conservation. In order tomake as much contributions as possible to the prevention of global warming, an international environmental issue,
we are focusing on the facilitation of energy conservation promotion activities at our production sites, as most of

our energy consumption is attributable to these facilities.
We have so far implemented such measures as: conducing energy-saving patrols to prevent overlooking ofcompressed-air or steam leakage from pipes and failures to switch off the lights; replacement of aged equipmentwith highly efficient one; switching to LED lighting; and ensuring the optimal electricity consumption by installinginverters on pumps and fans with a power of 7.5 kW or above to respond to changes in equipment loads.
In FY2020/3, we accelerated our efforts in factories to switch to LED lighting. This resulted in a significant increasein the ratio of LED lights.
We intend to facilitate our energy consumption promotion activities further, by seeking advice from energy
conservation consultants, energy management companies, and equipment manufacturers, and planning andimplementing energy conservation measures based on their advice.

Major Initiatives in Logistics Process
As a measure to ensure efficient distribution and environmental friendliness, Morinaga has created a joint
distribution system in collaboration with the corporations in the same industry.
Increasing the loading rate through the joint distribution reduces the number of transportation and delivery
vehicles, leading to a decrease in air pollutant emissions.
As a Specified Consignor * under the revised Act on the Rationalization etc. of Energy Use (“Energy Saving Act”),
we calculate and identify the amount of CO2 emitted during transportation, which was 15,809 t-CO2 in FY2020/3.
*

A Specified Consignor under the revised Energy Saving Act refers to a consignor whose annual volume of freight transportation
orders reaches 30 million ton kilometers per year or above.

Creating a Circular Economy
Basic Concept

The Morinaga Group’s
Sustainability

With the aim of creating a circular economy, Morinaga is promoting the reduction of waste emissions and recycling
activities by setting specific goals.

Sustainable
Management
Sustainable Management
Stakeholder Engagement

Initiatives to Reduce Waste Emissions

Sustainability Policies ＆Guidelines

Environmental
We are committed to reducing waste emissions by continuously undertaking productivity improvement activities

Initiatives

and improving our mainstream work processes through, for example, the reduction of process losses.

Environmental Management
Environmental Load
Generated by Business
Activities

Results in FY2020/3 (Factories)

Realization of a Low-Carbon
Society

Waste emissions from Morinaga’s four factories and five affiliated production companies were 9,556 tons, aCreating a Circular Economy

reduction of 19.8% from the FY2006/3 level and 1.6% from the FY2019/3 level. The energy consumption rate per

Environmentally-friendly

production unit decreased by 0.078 t/t or 1.5% year on year. Along with the results of our continuous productivity
improvement activities, improvements in our mainstream work processes, such as the reduction of process losses,

Packaging Materials
Initiatives to Resolve
Environmental

have produced an additional effect of reducing the generation of animal and plant residues. In 2019, the amount of

Pollutants

wastes emitted from our overseas production bases was 616 tons. We will continue to strengthen our activities to

Initiatives for Biodiversity

reduce waste emissions.

Effective Use of Water
Resources
Environmental Accounting

Social Contributions
Together with Customers
Together with Children
Collaboration with Social
Groups/Non-affiliate
Companies/Organizations
Together with Employees

GovernanceCorporate GovernanceCompliance
Risk Management
Respect for Human Rights

Promotion of Waste Recycling

Initiatives of
Sustainable Raw
Material Procurement
Medium-term Goal for

Initiatives to improve recycling rates

Sustainable Raw Material
Procurement

All Morinaga Group factories are working on the improvement of recycling rates. In the aggregate, Morinaga’s four
factories and five affiliated production companies recycled 99.97% of their emissions in FY2020/3. Going forward,

GRI Standards Index

ESG Data

Initiatives to recycle food wastes
Morinaga’s food recycling rate for FY2020/3 was 75.4%, which was approximately 3.4 percentage points lower
than the previous year. Our factories are endeavoring to reduce the generation of waste and to recycle the foodwastes they generated by transforming them mainly to animal feed, fertilizer, and raw materials for methane
fermentation. Due to their characteristics, our product wastes are not always suitable for recycling. However, in the
future, we will continue to promote recycling by selecting food waste recyclers in a manner aligned with our
products’ characteristics.

Waste Classification and Management
Morinaga’s four factories and five affiliated production companies are working on the waste classification andmanagement to ensure an effective use of resources.

Home > The Morinaga Group’s Sustainability > Environmental Initiatives > Environmentally-friendly Packaging Materials

Environmentally-friendly Packaging Materials
Basic Concept

The Morinaga Group’s
Sustainability

Owing to the variety and wideness of its product range, the Morinaga Group uses packaging materials made of

Sustainable

diversified materials. It also uses packing materials for the storage and transportation purposes.

Management

We are promoting environmentally conscious initiatives for packaging materials that involve multifaceted issues

Sustainable Management

such as plastic issues, deforestation, and climate change.

Stakeholder Engagement

Initiatives for Environmentally-friendly Packaging
Materials

Sustainability Policies ＆Guidelines

Environmental
In FY2020/3, Morinaga identified the amount of packaging materials used by the Company and established a plan
for reducing the amount of major packaging materials such as paper (incl. paper boxes), plastics (incl. plastic
films), and cardboard (incl. cardboard boxes and cases). In the future, we will further promote: the reduction of use

Initiatives
Environmental Management
Environmental Load
Generated by Businessof fossil resource-based plastics; the shift to FSC®-certified paper sourced from well-managed forests and other

Activities

controlled sources; and the shift to packaging materials with lower emissions.

Realization of a Low-Carbon
Society
Creating a Circular Economy
Environmentally-friendly®

Promotion of shift to FSC -certified paper for core products’
packaging materials

Packaging Materials
Initiatives to Resolve
Environmental
Pollutants

We replaced packaging materials for some Morinaga Chocolate products (DARS and Carre de chocolat) and theInitiatives for Biodiversity

Morinaga Biscuits series (including Marie Biscuits) with those made of FSC®-sourced paper. We intend to promote

Effective Use of Water

the shift to the FSC®-certified paper and expand the scope of its use to other products in sequence.

Resources
Environmental Accounting

Social Contributions
Together with Customers
Together with Children
Collaboration with Social
Groups/Non-affiliate
Companies/Organizations
Together with Employees

GovernanceCorporate GovernanceCompliance
Risk Management
Respect for Human Rights

Initiatives of
Sustainable Raw
Material Procurement
Medium-term Goal for
Sustainable Raw Material

Reduction of plastics used in/use of biomass ink for “in Jelly”
brand’s packages

Procurement

GRI Standards Index
In February 2020, we reduced the amount of plastics used in the “in Jelly” brand’s packages by saving the weightof plastic cap and straw by approximately 9% (approximately 70 tons per year) compared to the conventional level.

CSR Report

In addition, we partly replaced the printing ink used in the product with plant-derived, environmentally-friendly
biomass ink. At the same time, we adopted easier-to-open caps to improve customer convenience.

Use of biomass plastics in the Milk Cocoa Stick Type productseriesSince 2013, we have used plant-derived plastics in part of stick packs of the Milk Cocoa Stick Type product series.
This enabled us to reduce greenhouse gas emissions by approximately 1.1 tons a year over the entire life cycle,
compared to cases where petroleum-derived materials are used.

ESG Data

Initiatives to Resolve Environmental Pollutants
Basic Concept

The Morinaga Group’s
Sustainability

In order to prevent the pollution of air and other resources as well as the destruction of natural environment andecosystem, we control environmental pollutants and promote their reduction.

Management of Environmental Pollutants and Promotionof their Reduction

Sustainable
Management
Sustainable Management
Stakeholder Engagement
Sustainability Policies ＆Guidelines

Initiatives to reduce air pollutant emissions
In order to promote the reduction of NOx and CO2, we have replaced all boilers in our factories with those that use
city gas as fuel. We also request our business partners to stop idling their vehicles in our factory premises.
Furthermore, as a result of our efforts to reduce the environmental impact of commercial vehicles, the percentage
of low-emission vehicles in Morinaga’s commercial vehicles reached 99.4% as of the end of FY2020/3.

Environmental
Initiatives
Environmental Management
Environmental Load
Generated by Business
Activities
Realization of a Low-Carbon
Society
Creating a Circular Economy

Initiatives to prevent water pollution

Environmentally-friendly
Packaging Materials

We have established voluntary standards that govern the management and operation of all wastewater treatment
facilities in our factories. We also use a checklist to monitor their performance regularly. Moreover, we implement
measures to strengthen both tangible and intangible resources. Measures for the former include the reviewing of
the Operation Management Procedures Manual on an as-needed basis and the provision of employee education

Initiatives to Resolve
Environmental
Pollutants
Initiatives for Biodiversity
Effective Use of Waterand training; measures for the latter include equipment maintenance and investments in the renewal or

Resources

improvement of facilities.

Environmental Accounting

Social Contributions

Management of chemical substances
Our factories promote safe and proper management of chemical substances and reduction of their emissions

Together with Customers
Together with Children
Collaboration with Social
Groups/Non-affiliate

according to the ISO 14001 management system. In particular, we ensure strict management of chemical

Companies/Organizations

substances by establishing and abiding by the Chemical Substance Management Manual in accordance with the

Together with Employees“Act on Confirmation, etc. of Release Amounts of Specific Chemical Substances in the Environment andPromotion of Improvements to the Management Thereof” (the PRTR Act).

GovernanceCorporate GovernanceCompliance
Risk Management
Respect for Human Rights

Initiatives of
Sustainable Raw
Material Procurement
Medium-term Goal for
Sustainable Raw Material
Procurement

GRI Standards Index

ESG Data

Initiatives for Biodiversity
Basic Concept

The Morinaga Group’s
Sustainability

For the realization of a sustainable society, we ensure the conservation of biodiversity and the protection of

Sustainableecosystems.

Management

Biodiversity Conservation Initiatives

Sustainable Management
Stakeholder Engagement
Sustainability Policies ＆Formulation of Morinaga Group Procurement Policy

Guidelines

In accordance with the Morinaga Group Procurement Policy, we are committed to the conservation of biodiversity

Environmental

and engaged in our procurement activities focusing on the raw materials that are considerate of the global

Initiatives

environment.

Environmental Management
Environmental Load
Generated by Business
Activities

Membership in RSPOIn October 2019, Morinaga & Co., Ltd. joined the Roundtable on Sustainable Palm Oil (RSPO) and took the firststeps towards the use of RSPO-certified oils.

Realization of a Low-Carbon
Society
Creating a Circular Economy
Environmentally-friendly
Packaging Materials
Initiatives to Resolve
Environmental
Pollutants

Use of FSC®-certified paper

Initiatives for Biodiversity
Effective Use of Water

We aim to promote the shift to FSC®-certified paper sourced from well-managed forests and other sources andResources

expand the scope of its use in sequence.

Environmental Accounting

Social Contributions

Sustainable cacao beans

Together with Customers
Together with Children
Collaboration with Social

We have started using Cocoa Horizons-certified raw materials in certain products.

Groups/Non-affiliate
Companies/Organizations

Supply Chain Management

Together with Employees

Governance

Nature Exploration in the Iga Angel Forest
The Morinaga Group believes that children’s exploration in the nature will lead to the conservation of biodiversity
by the next generation. Based on this belief, since 2007, we have been engaged in activities designed to help

Corporate GovernanceCompliance
Risk Management
Respect for Human Rights

children understand the importance of the environmental conservation. These activities are undertaken incollaboration with an NPO specialized in environmental education in the company-owned Iga Angel Forest in Mie

Initiatives ofPrefecture.

Sustainable Raw
Material Procurement
Medium-term Goal for
Sustainable Raw Material
Procurement

GRI Standards Index

ESG Data

Forest Kindergarten program (FY2020/3)

Effective Use of Water Resources
Basic Concept

The Morinaga Group’s
Sustainability

The Morinaga Group is committed to the effective use of water resources.

Sustainable

With the aim of effectively using water resources, we will identify regions facing high water stress and consider

Management

possible actions by conducting water withdrawal surveys and evaluating our domestic and overseas production

Sustainable Management

facilities for water stress using the World Resources Institute’s Aqueduct Water Risk Atlas.

Stakeholder Engagement
Sustainability Policies ＆Guidelines

Environmental
Initiatives
Environmental Management
Environmental Load
Generated by Business
Activities
Realization of a Low-Carbon
Society
Creating a Circular Economy
Environmentally-friendly
Packaging Materials
Initiatives to Resolve
Environmental
Pollutants
Initiatives for Biodiversity
Effective Use of Water
Resources
Environmental Accounting

Ten locations in total
Four factories of Morinaga & Co. Ltd. (Yokohama, Kanagawa ; Oyama, Tochigi ; Anjo, Aichi ; Mishima,
Shizuoka)
Three affiliated production companies (Takasaki, Gunma ; Yamato, Kanagawa ; Tosu, Saga)
Three overseas production bases (North Carolina, USA ; Taipei, Taiwan ; Zhejiang, China)

Social Contributions
Together with Customers
Together with Children
Collaboration with Social
Groups/Non-affiliate
Companies/Organizations
Together with Employees

GovernanceCorporate GovernanceCompliance
Risk Management
Respect for Human Rights

Initiatives of
Sustainable Raw
Material Procurement
Medium-term Goal for
Sustainable Raw Material
Procurement

GRI Standards Index

ESG Data

Eleven locations in total
Four factories of Morinaga & Co. Ltd. (Yokohama, Kanagawa ; Oyama, Tochigi ; Anjo, Aichi ; Mishima,
Shizuoka)
Four affiliated production companies (Takasaki, Gunma ; Yamato, Kanagawa ; Tosu, Saga ; Amagasaki,
Hyogo)
Three overseas production bases (North Carolina, USA ; Taipei, Taiwan ; Zhejiang, China)Home > The Morinaga Group’s Sustainability > Environmental Initiatives > Environmental Accounting

Environmental Accounting
MORINAGA effectively utilizes environmental accounting as both an indicator for determining levels of

The Morinaga Group’s

achievement of environment-related policies, targets, and objectives, and as a tool for enhancing environmental

Sustainability

performance.

Aggregate results for FY2019

Sustainable
Management
Sustainable Management

Target period: April 1, 2019 - March 31, 2020

Stakeholder Engagement
Sustainability Policies ＆Environmental preservation costs (Unit: 1,000 yen)Classification

Guidelines

Content of main
initiatives

Investment

Costs

Environmental
Initiatives

Costs for controlling environmental load
generated in operational areas due to
production/service activities (In-operational
area costs)
Breakdown

Pollution
prevention costs

39,945260,284

Environmental Management
Environmental Load
Generated by Business
Activities

Replacement ofwastewater treatment
equipment/devices

0

138,975

Realization of a Low-Carbon
Society
Creating a Circular Economy
Environmentally-friendly

Pollution
countermeasures

Packaging Materials
Initiatives to Resolve

Global environment
protection costs

Energy-saving
measures39,945

11,212

Environmental
Pollutants
Initiatives for Biodiversity

Resource recycling

Installation of waste

costs

plastic compacters
Waste recycling costs

Costs for controlling environmental load
generated upstream or downstream due to
production/service activities

Container/packaging
recycling contracting
costs(Upstream/downstream costs)

Container/packagingrelated organizational
contributions

0

110,097

Effective Use of Water
Resources
Environmental Accounting

0

168,956

Social Contributions
Together with Customers
Together with Children
Collaboration with Social
Groups/Non-affiliate
Companies/Organizations

Environmental preservation costs related to
management activities(Management activity costs)

Steam/electricity
meter installation

0

23,562

ISO14001
operational costs

Together with Employees

GovernanceCorporate Governance

Environmental preservation costs related tosocial activities

Cleaning up factory
grounds and(Social activity costs)

neighboring areas,
CSR reportpublication costs

039,243Compliance
Risk Management
Respect for Human Rights

Initiatives of
Costs related to environmental damage(Environmental damage costs)

Pollution load levy

0269

Sustainable Raw
Material Procurement
Medium-term Goal for
Sustainable Raw Material

Classification

Content of main
initiatives

Investment

Costs

Procurement

GRI Standards Index
Total

39,945492,315CSR Report
ESG Data

Environmental effects

Environmental preservation effects (reduction
amount compared to the previous fiscal year)
Environmentalload item

Total
volume [t]Energyconsumption
rate perproduction
unit* [t/t]CO2emissionsvolume▲794▲0.005Water
consumption
volume▲45,944▲0.561▲117▲0.001

Waste
generation
volume*Economic effects of environmental
preservation measures (Unit: 1,000 yen)Content ofeffects

Profit on
sale ofvaluableTotalamountEnergyconsumption
rate perproduction
unit

2,592

items
through
waste
recycling
Reduction inenergycosts
compared tothe previous
fiscal year

149,778

3,383

Reduction in
waste
processing
costs
compared tothe previous
fiscal year

▲15,171▲0.236

Total

137,199"Energy consumption rate per production unit" refers to the CO2 emissions volume, water consumption volume, or waste
generation volume per production volume.

Supplement: The [▲] symbol shows an increase over the previous fiscal year. The main reasons forincreases/decreases are as follows.

• Reductions in energy consumption amounts due to facility improvements and efficient operations.
• Control of waste generation due to a "Quality First" mentality of not producing defective products as well as
promotion of the conversion of waste into recyclable materials through thorough separation of waste.

Aggregation Method• The aggregation scope includes MORINAGA's four factories and some Head Office departments.
• In understanding the environmental preservation costs and effects, we also referred to the Ministry of theEnvironment's "Environmental Accounting Guidelines" and formulated "Environmental Accounting Aggregation
Guidelines" as criteria for identifying and aggregating environmental costs and effects, basing our aggregations
on these guidelines.

Environmental preservation costs do not include depreciation costs for capital investment.

•• R&D costs are not aggregated.

In future, we will continue to fully consider factors that could potentially causes increases in pollution and promote
initiatives for reducing pollutants.

Home > The Morinaga Group’s Sustainability > Social Contributions > Together with Customers

Together with Customers
Commitment to Quality

The Morinaga Group’s
Sustainability

Basic Concept

Sustainable
Management

Since Morinaga’s foundation, the Morinaga Group has consistently developed, manufactured and sold a diverse
range of products. We believe that the mission of a food company is to always assure safety and secure quality

Sustainable Management
Stakeholder Engagement

and contribute to the healthy diet of our customers in addition to accurately read and understand the increasingly

Sustainability Policies ＆diversified needs of customers and society, undertake research and development, and provide new value.

Guidelines

Environmental

Quality Policy
In realizing our vision—Delicious, Fun, and Healthy—we recognize our customers’ trust as the most precious

Initiatives
Environmental Management
Environmental Load
Generated by Businessvalue, and we cherish our relationships of trust with customers.

Activities

We are aware that this trust is premised on continuing to develop and provide customers with products, services,

Realization of a Low-Carbon

and information that contribute to society, on placing the utmost priority on creating excellent quality products, andon ensuring customer safety and well-being, while at the same time expanding all Group company businessactivities in accordance with our corporate principles and in compliance with laws and ordinances, the corporate
Code of Conduct, and internal regulations.

Society
Creating a Circular Economy
Environmentally-friendly
Packaging Materials
Initiatives to Resolve
Environmental
Pollutants
Initiatives for Biodiversity
Effective Use of Water
Resources
Environmental Accounting

Social Contributions
Together with Customers
Together with Children
Collaboration with Social
Groups/Non-affiliate
Companies/Organizations
Together with Employees

GovernanceCorporate GovernanceCompliance
Risk Management
Respect for Human Rights

Initiatives of
Sustainable Raw
Material Procurement
Medium-term Goal for
Sustainable Raw Material

Procurement

GRI Standards Index
CSR Report
ESG Data

Quality Initiatives
In an effort to deliver safe products to our customers, we have established a safety-focused quality assurance
system that employs various approaches and mechanisms throughout all processes from product development toprocurement, production, distribution, and sales.
If a customer gives feedback about our products after the delivery thereof, we respond to it by conducting a varietyof quality investigations and analyses and reporting their results back to the customer. We share these types of
information within our organization to leverage it for purposes of product development and improvement If an
unexpected event occurs to our products, we would be committed to disclosing information accurately andpromptly in order to restore our customers’ trust.

1. Product Developmentment
In designing the quality and packages/containers and making proper labels, we comply with food-related laws andour internal rules set to protect the quality of products on store shelves as well as the quality and safety up to thebest-before date.

Quality assessment system
Our Quality Assessment System is designed to identify and remove risks involved in any new or renewed productsin the development phase, by reviewing and checking them in a cross-sectional and overarching manner before
making the decision to launch them into the market, through the use of a checklist that covers 12 categories andapproximately 180 items to check. Our product development process involves a number of divisions, with each ofthem being responsible for reviewing and confirming the product’s safety and other specifications. At the sametime, our Quality Assessment System serves as a cross-sectional tool to avoid any oversight or unchecked areas
and ensure a consistent level of quality and regulatory compliance.

2. Procurement of Raw Materials

We have prescribed strict regulations for the raw materials used in our products, and purchase ingredients frommanufacturers who can meet these requirements. We check information on the safety and security of raw
materials with regard to not only compliance with the Food Sanitation Act but also food additives and allergenic
substances. We also conduct necessary testing, confirming that raw materials are safe.

3. Production
All of our domestic production factories (four Morinaga factories and three affiliated production companies) haveobtained the FSSC 22000 accreditation, an international accreditation standard for food safety systems.

[Accredited factories] (As of June 30, 2020)
Mishima Factory, Oyama Factory, Chukyo Factory, Tsurumi Factory, Takasaki Morinaga
Co., Ltd., Morinaga Angel Dessert Co., Ltd., and Morinaga Dessert Co., Ltd.

4. Shipping Inspection
Once produced in a factory, products undergo a shipping inspection as a final check in the factory before theyreach our customers. The shipping inspection process is the last line of defense to ensure the safety for ourcustomers. Specifically, the process is designed to verify the product’s flavor, alignment with specified color tones,
dimensions, and weight, and observance of bacterial standards (microorganism control), to identify any broken or
defective packages, and to look at whether the best-before date is printed correctly.

Product inspection (measurement of the length and weight to determine the adherence to specifications)5. Transportation/Storage/In-store Management
To deliver safe products to our customers, we request our business partners in the logistics chain—warehouses,
transportation companies, wholesale and retail trade—to set rules, provide employee training, and ensure
cooperation so as not to impair the quality of our products.

Analysis

The Morinaga Group is constantly engaged in the analysis and material characterization of, and the developmentof analytical techniques for, nutritional and functional ingredients, chemical substances, heavy metals,
microorganisms, food allergens, and genetically modified organisms (GMOs). Based on scientific and objective
evidences, we verify the safety and regulatory compliance of, and provide warranty to, the product development,
raw materials, production, logistics, products, and defective products reported by customers.

Measurement of food allergens (specified raw materials)

Response to Customers’ Opinions and Feedback
If a product is reported to be defective by a customer, we immediately carry out an investigation and analysis,verify compliance with quality and regulatory requirements, and report the results to the customer. Further, wequarterly hold a meeting of the Customer Voice Committee with the aim of taking customers’ opinions andfeedback into consideration in our company-wide efforts to improve product quality, packaging, labeling, sales
campaigns, advertisements, and so forth.
Communication with Customers

Food Defense
As part of our efforts to prevent foreign substances being intentionally inserted into foods, we first of all endeavor
to create a workplace environment where it is easy to work and importance is placed on communication, raising
employee awareness so that they act in a manner that gives highest priority to customers’ safety and peace ofmind. On top of this, we implement both tangible and intangible measures to reduce risks, including stricter
management of entry/exit to/from factory premises and production facilities, rigid compliance with rules concerning
the prevention of contamination (restrictions on personal belongings allowed to be brought in and the handling ofchemicals), and installation of camera-based recording systems.

Controller room

Camera-based recording system

Traceability
Throughout the process from raw materials and ingredients to manufacturing, storage, and delivery, we maintainproduct traceability by keeping complete records of, and take strict control over, raw materials and products. We
also carry out training on a regular basis and confirm whether the traceability system is working properly.

Traceability is checked using with a bar code reader

Correct and Easy-to-understand Labeling
In addition to being in compliance with laws such as the Food Labeling Act, labeling on packaging provides
important information for customers when selecting products. We contrive ways to ensure health-related
information such as allergy information, nutritional information, and best-before dates are easy to read andunderstand. We are also engaged in efforts to label individual packaging with allergen information and crosscontamination statements in sequence (a warning for possible contamination arising from production at sharedfacilities) (excluding those of certain products).

Product label on the package of DARS ＜Milk＞

Response to Food Allergies
We provide not only legible and easy-to-understand allergen data on product packages but a list of allergens on
our website to help customers feel safe when selecting our products. For the sake of customers with allergies, wewill continue to carry out strict quality control over specified raw materials and their equivalents as part of oursustained efforts to deliver safe products to our customers.

Allergen-related information (website) Chocoball ＜Peanuts＞

Genetically Modified Raw Materials
In principle, we do not use genetically modified materials in our products. Soybeans and corns are treated underIdentity Preserved Handling (IP Handling) so that genetically modified raw materials are not included.
We use vegetable oils, emulsifiers, flavors, etc. that contain ingredients not critically separated from geneticallymodified crops. However, it is not required to list these ingredients on product labels, as their protein component
has been removed or decomposed during the production process and therefore it is technically infeasible todetermine whether the food is genetically modified or not.

Quality Assurance Initiatives Overseas

All of our three overseas production bases—Taiwan Morinaga Co., Ltd., Morinaga Food (Zhejiang) Co., Ltd., andMorinaga America Foods, Inc.—have received third-party accreditation under an international accreditation
standard for food safety systems (FSSC 22000 and SQF*), demonstrating their commitment to safe production
procedures. We also include our overseas production subcontractors in the scope of quality inspections to confirm
that they ship safe products under an appropriate quality assurance system.
*

SQF (Safe Quality Food): An international accreditation standard that combines a HACCP-based food safety management
system and a quality control system to ensure food safety and quality.

Process inspection in Morinaga America Foods, Inc.

X-ray inspection in Morinaga America Foods, Inc.

Initiatives by Cooperating Companies
The Morinaga Group has not only its own production facilities but a number of cooperating companies(approximately 90 companies as of April 2020) who act as our production subcontractors in Japan.
Before entering into a subcontract with a cooperating company, we confirm that they have in place a quality control
system that is comparable to that of the Morinaga Group’s production facilities by conducting a Good
Manufacturing Factory (GMF) Inspection* and checking a maximum of more than 150 points.
Even after the subcontract is entered into, we continue to carry out the GMF Inspection regularly and request thecooperating company to maintain and enhance its quality control system, while sharing necessary information
through information exchange forums, etc. and providing support imperative for quality improvement.
*

GMF (Good Manufacturing Factory): Morinaga’s quality inspection system in which factories are visited by inspectors to determine
whether systems are in place for allergen control, avoidance of contamination by foreign substances, microbial control, etc.

Communication with Customers
Framework for Customer Satisfaction
The Morinaga Group considers customers’ voices as the key to creating better products and services and toformulating management strategies. Led by the Customer Service Center, Production Management Division, andQuality Assurance Division, a meeting of the Customer Voice Committee is held quarterly to share customers’
voices among all relevant divisions.
In the meeting, attendees share, for example, ideas that may lead to an improvement of products and services andmeasures to improve the manufacturing-related division, and the Director in charge reports them to the Board of
Directors.
All of the customers’ voices we received are shared by officers and the entire organization, on a daily basis
through the daily report, and on a monthly basis as a tabulated data. This enables us to detect issues at their earlystages, take countermeasures promptly, and make efficient use of the voices in our marketing activities including
product development and sales promotion.
Furthermore, our Customer Service Center has committed itself to achieving a higher level of customer
satisfaction in accordance with ISO 10002, with which the Company made a self-declaration of conformity in 2013.

Initiatives by the Customer Service Center
Having established the Customer Service Department as a point of direct contact with customers, we ensure to
respond to our customers in a sincere, swift, and accurate manner through such means as telephone numbers,
emails, and letters. We share customers’ opinions and requests across the organization and make use of them forthe improvement of products and services. We have published frequently asked Q&A on our website to help ourcustomers find solutions speedily.

Results of Customer Satisfaction Survey
Our Customer Service Department is in charge of addressing feedback from customers. It analyzes every piece of
feedback, investigate the cause, and report the result to the customer who gave the feedback. With the report, we
enclose a postcard that requests the recipient to respond to a survey, which we undertake annually to assess thelevel of customer satisfaction with our customer service. We use the survey results to make further improvements
to our customer service practices.
The FY2020/3 survey shows that 93.4% of our customers are satisfied with our customer service as a whole, and93.1% want to buy our products “more than ever” or “as ever.” We interpret that these favorable responses fromthose who once gave feedback regarding our products or services are the results of our ongoing efforts to offer
sincere, prompt, and accurate service.
On the other hand, we also hear critical comments and remarks from our customers. Seeing them as valuable
feedback that helps us make our services better, we will make use of them in our efforts for the future.

Improving Products and Services Based on Customers’ Voices
We share our customers’ voices across the organization and make use of them to detect issues in an early stage
and create better products and services. Favorable comments about our products are published in wall
newspapers, which are distributed monthly to individual divisions and departments as well as branches andfactories nationwide. Even when we receive critical comments, we take them seriously and make use them toimprove our products and services. Some of the improvements made in response to them are posted on our
website.

Use of easier-to-open caps (website)

Wall newspaper No. 112, published in December 2019

Wider Q&A Information on Website
We regularly update the list of questions and answers on our website to improve the content. Most frequently
asked questions are included in the FAQ section. Questions in the section are sorted in the order of how frequently
they are asked, helping users find necessary information easily.

Home > The Morinaga Group’s Sustainability > Social Contributions > Together with Children

Together with Children
Philosophy of Activities

The Morinaga Group’s
Sustainability

Basic Concept

Sustainable
Management

Spanning over 120 years, Morinaga’s history has been sustained by the smiles of our customers, especiallychildren.

Sustainable Management
Stakeholder Engagement

With gratitude in our hearts, we therefore wish to continue to carry out activities that put even brighter smiles on

Sustainability Policies ＆the faces of children who will lead the future.

Guidelines

Environmental

Basic principles of Morinaga’s social contribution
activities

Initiatives
Environmental Management
Environmental Load

“Aiming to nurture children’s healthy physical and mental development” through handson experiences

Generated by Business
Activities
Realization of a Low-Carbon
Society
Creating a Circular Economy
Environmentally-friendly
Packaging Materials

Offering Experience-based ProgramsChildren develop by interacting with people in society and by accumulating a broad range of experiences.
Nowadays, however, the social environment is changing because of advances in IT and other factors, and theInitiatives to Resolve
Environmental
Pollutants
Initiatives for Biodiversity
Effective Use of Water

opportunities for children to have direct experiences are decreasing.

Resources

Just as our founder wished to provide nutritional support to children of the Meiji and Taisho periods (the late 1800s

Environmental Accounting

and early 1900s) through Western confectioneries, Morinaga today aims to support the healthy physical andmental development of children—leaders of the future—by providing experience-based programs tailored to thedevelopmental stage and appropriate themes for each age group from the perspectives of experience in foodSocial Contributions
Together with Customers

education, nature exploration, and sports.

Together with Children

Food Education Experiences

Collaboration with Social
Groups/Non-affiliate
Companies/Organizations

Confectionery Education

Together with Employees

Morinaga believes that the value of confectioneries lies in supplementing nutrition and its role in communication

Governancethat connects people to people and hearts to hearts.

Corporate GovernanceMorinaga donates “Mel and Mar’s Picnic,” our original picture book for confectionery education, to children’sCompliancenursery facilities. This is aimed at helping children develop creativity while learning about, in a fun way,

Risk Management

confectionery’s roles and how to properly associate with confectionery. The nursery facilities use the book for such

Respect for Human Rights

purposes as storytelling and drama-based workshop.

Initiatives of
Sustainable Raw
Material Procurement
Medium-term Goal for
Sustainable Raw Material

Procurement

GRI Standards Index
CSR Report
ESG Data

Children listening to stories/participating in drama-based
workshops

KidZania Tokyo
At the Sweets Factory, a pavilion exhibited by Morinaga in the KidZania, children can experience the joy of working
and try manufacturing techniques through the production of HI-CHEW candies. They can also learn about foodhygiene, rules, and manners, while developing independence and sociality.

Factory Tour
Through factory tours, participants see and experience, through hands-on activities, the fun and true pleasure ofmanufacturing, as well as the measures used to ensure food safety and security. Furthermore, as a 120th
anniversary commemoration project, we opened the Morinaga Angel Museum “MORIUM” within the premises of
the Tsurumi Factory in the spring of 2020. Visitors to MORIUM can learn about Morinaga’s history in a fun manner
through various exhibits and videos.

Oyama Factory

Morinaga Angel Museum “MORIUM”(Public open day: Yet to be decided)

Visiting Lecture—A Caramel Lesson by Morinaga

Employees visit elementary schools to teach a class about the industrial production of milk caramels. The classtargets fifth graders and offers a sense of realism as if they are on a factory tour. The class aims to teach about theingenious attempts and hard work of industrial production, as well as our passion toward manufacturing. This
helps deepen their learning in textbook.
Pupils watch the video of production process and take part in quiz and workshop to participate experience-basedclass.

LectureQuiz session

Workshop

Voice: [Comments of employees who participated in the Caramel Lesson]
Confectioneries have the power to make people happy
I participated in the lesson because I wanted children to love caramel more. I was nervous about standing on the
podium, but I was very happy that many children listened to me with serious faces and asked questions earnestly.
The smiles the children gave me when they received caramels as a souvenir reminded me that “Confectioneries
make people happy,” and made me love caramels even more. This is an opportunity to understand the value ofour products. I would like to expand this activity to many employees.

Motoki Matsui
MIRAI Research & Innovation, R&D Center, Morinaga & Co., Ltd.

Nature Exploration

Business Philosophy—To support the healthy physical and mental development of children who will lead thefuture—“Help children find something important for their lives with their own eyes through handson experiences in the great outdoors.”
Based on this business philosophy, we provide camping opportunities to children in thehope that they will gain the “ability to survive” spontaneously in an extraordinary
environment.

Exploratory Expeditions
Since 1999, we have organized six-day/five-night exploratory expeditions to uninhabited Islands under theMorinaga Little Angels Education Project. The Project, a commemoration of the 100th anniversary of our founding,was launched to reflect on the significant changes occurred in our children’s living environment during the last ten
decades and to help them have an active but lively and spiritually-affluent childhood in the 21st century.
In FY2020/3, the Project’s location was shifted from uninhabited islands to the Fuji Five Lakes area near themajestic Mt. Fuji. A total of 32 elementary school pupils went on a five-day/four-night adventure as a team ofcomrades who had never met before with each other. They explored the transparent lake waters, clear skies,
dense woodlands, and caves. By participating in the camp and various adventures away from their everyday lives,the children gained the ability to survive and achieved a significant growth.

Over two hours of mountain climbing

Adventurous swimming in the Lake Saiko

Participating in SDGs Work in Camping Trip (Exploratory
Expeditions)
In the exploratory expedition event, which was held for the first time in FY2020/3, we conduct the SDGs Work inwhich children work on the SDGs through the camping experience. Participants in the SDGs Work, an original
program developed by Morinaga, learn about the SDGs before joining the camp, select the SDGs goals they want
to work on during the camping trip, and share the goals with their group’s members. They also select goals to beworked on as the group, take actions necessary to achieve the goals in cooperation with the group’s members,
and carry out a review after the camp.
The most selected SDGs goal was the “Goal 12: Responsible Consumption and Production.”
To achieve the Goals, the participants made efforts voluntary and daily. These efforts included avoiding foodwaste, eating all the food cooked, and ensuring recycling to reduce garbage.

Group discussions on SDGs

Industry-Academia Joint Research on Exploratory Expeditions
Since 2008, we have been conducting industry-academia joint research in collaboration with Tokyo Gakugei
University, in an effort to evaluate our nature exploration program from an external professional perspective andupgrade the content of the program’s activities. In the research, we conduct surveys before, immediately after, andone month after the camp, to measure their level of satisfaction with the camp, eagerness to participate inactivities, and the degree of their growth. The research’s results are used to further improve the program. In thesurvey conducted in FY2020/3, a high score was observed for all items.

Voice: [Comment by the partner of the industry-academia joint research on the
exploratory expedition program]
Great social contribution! —Development of children through nature exploration—
It has been 22 years since the launch of the joint research. It was launched in 1999, when I participated as staff
member in the exploratory expedition to an uninhabited Islands under the Morinaga Little Angels Education
Project, which was carried out to commemorate the 100th anniversary of Morinaga’s founding. Since then, theproject has been continued until today on an annual basis, as a gift for children.
Since I assumed my current position (in Tokyo Gakugei University) in 2008, I have also been engaged in theverification of the project’s educational effect in the form of industry-academia joint research, which pays particularattention to children’s “ability to survive.” The research showed, with a scientific evidence, that the camping
experience allows children to grow significantly, by playing and cooperating with friends in the wilderness andovercoming various challenges.
No other company implements any initiative like this. I know that camping is a risky project for a company.
However, I hope that Morinaga will continue the project in the future and make use of its expertise to play apioneering role and act as a model case of a social contribution project aimed at developing the youth throughnature exploration.

Shin-ichi Komori
Associate Professor, Advisor to the President
Tokyo Gakugei University

Sports Experiences
Supporting Junior Athletes
We annually hold a nutrition seminar and an exercise event designed to improve athletic competency for athletes—elementary school pupils and junior to high school students who belong to the “AEON Bike Jr. Academy,” aproject jointly led by professional mountain bike athletes and AEON Bike Co., Ltd.—and their parents.
After a demonstration by professional mountain bikers, trainers and nutritionists from Morinaga Training Lab (seep. 32) provide training lessons in which participants are required to do physical activities, as well as lectures on thehydration and recovery and on nutrients necessary for children in their growth phases.

Exercise to improve athletic competency (FY2020/3)

A lecture on the nutrients required in the growth phase(FY2020/3)

Ottotto Calisthenics
Morinaga Training Lab, which is mainly in charge of providing training guidance and nutritional support to athletes,
devised the Ottotto Calisthenics in collaboration with Yokohama Sport Association, in the aim of promoting, asmuch as possible, children’s healthy growth through exercise and diet.
The Calisthenics was devised in the expectation that various forms of body movements, such as jumping, rolling,and standing on one leg, will promote the development of athletic ability in early childhood, thereby reducing
injuries caused by falls. In the Calisthenics, we incorporated the image of the sea friends, the characters appearing
in our Ottotto snack, so that children can enjoy the exercise.

Ottotto Calisthenics educational videos

Home > The Morinaga Group’s Sustainability > Social Contributions > Collaboration with Social Groups/Non-affiliate Companies/Organizations

Collaboration with Social Groups/Non-affiliate
Companies/Organizations
Basic Concept

The Morinaga Group’s
Sustainability

To resolve various social issues, the Morinaga Group is engaged in donation, sponsorship and cooperation, andSustainable

joint programs in collaboration with customers, society, governmental bodies, organizations, and other

Management

corporations that have shared values with us.

Sustainable Management

Collaboration with NPOs—Contribution to cacao
producing countries
In 2008, Morinaga launched a support program for children living in cocoa-producing countries. We are working
toward the achievement of a society where everyone can smile and have access to education in a safe
environment, not only those who enjoy chocolate but also children in the countries producing cacao, a raw material
for chocolate.

Stakeholder Engagement
Sustainability Policies ＆Guidelines

Environmental
Initiatives
Environmental Management
Environmental Load
Generated by Business
Activities
Realization of a Low-Carbon
SocietySocial issues surrounding cocoa-producing countries

Creating a Circular Economy
Environmentally-friendly

Some of the equatorial countries producing cacao, the raw material for chocolate, have not achieved financial

Packaging Materials

independence, preventing their people from accessing an appropriate educational environment. Education plays a

Initiatives to Resolve

key role in helping children acquire an ability to choose their own future and live in their own way. However, in theworld, there are some children who are subjected to child labor and deprived of opportunities to receive a proper

Environmental
Pollutants
Initiatives for Biodiversity

education due to poverty and insufficient understanding about the importance of education, as demonstrated by

Effective Use of Water

aged or a lack of school buildings or classrooms, as well as the shortage of teachers and supplies that are

Resources

necessary for lessons.

Environmental Accounting

With the wish to bring a smile to everyone—not only those who enjoy chocolate but also children who are learningin the countries that are home to chocolate—in mind, Morinaga launched the One Chocolate for One Smile project

Social Contributionsin 2008 to improve the situation in cacao-producing countries.

Together with Customers
Together with Children
Collaboration with Social
Groups/Non-affiliate
Companies/Organizations
Together with Employees

GovernanceCorporate GovernanceCompliance
Risk Management
Respect for Human Rights

Initiatives of
Sustainable Raw
Material Procurement

Medium-term Goal for
Sustainable Raw Material
Procurement

GRI Standards Index
CSR Report
ESG Data

Framework of One Chocolate for One Smile

Bring a smile to consumers, manufacturers, and everyone—Aid
activities through the One Chocolate for One Smile campaign
The One Chocolate for One Smile project is aimed at aiding the activities to improve the educational environment
for children in cacao-producing countries, using revenues from the sale of our chocolate products subject to theproject (such as Dars). In addition to our year-round donation effort, we donate one yen per eligible chocolate
product sold during the designated months. Since 2008, the total amount exceeded 200 million yen in ten years.
The amount donated is used for aid activities by our aid partners, Plan International Japan, a public interest
incorporated foundation, and Action against Child Exploitation (ACE), an authorized NPO. These activities, whichmainly target African countries such as Ghana and Cameroon, aim to support all children so that they can receive
quality education and their homes and communities can achieve stability enough to provide education to thechildren and protect their rights.
These partners also used the donation money to improve the school and hygiene environment, provide technology
guidance to farmers, and to raise awareness of children’s rights through education in the aid areas. These
activities helped stop child labor, thereby increasing the number of children who can go to school.
Plan International
Japanese NGO ACE

Membership in the World Cocoa Foundation (WCF)
Morinaga supports the activities of the World Cocoa Foundation (WCF)—which promotes various programs aimed
at providing technical guidance and educational support for cacao farmers, as well as realizing societies withoutchild labor, and provide support for cacao-producing countries through our activities as a WCF member.

Providing technical guidance to cacao farmers

Participation in the Bellmark Program
Morinaga has continuously participated in the Bellmark program since it was launched in 1960 and has provided
support for Bellmark activities, which assist the improvement of school equipment and educational materials, aswell as children who are endeavoring to learn with various disabilities. Currently, Morinaga is contributing to theBellmark program by printing the Bell Mark on six products: Milk Caramel, Hi-Soft, Morinaga Biscuits, ChocoBall,
Milk Chocolate, and Ottotto.

Morinaga Angel Foundation
Emphasizing the importance of an “Angel’s Heart,” which is Morinaga’s symbol, the Morinaga Angel Foundation
conducts research on forms of abundant human lifestyles and the ideal of families in the future through, forexample, art, sports, nature, food, and classics. We are also engaged in activities to deliver a picture book titled“MORI-no-Ehon” to children who are living in the areas hit by recent earthquakes, heavy rains, and other natural
disasters, including the Great East Japan Earthquake. The number of the book’s copies delivered amounted
8,556.

Activities to deliver the MORI-no-Ehon picture book

Joint Programs with Non-affiliated Companies throughthe Angel Smile Project
Under the Project, companies (limited to food manufacturers, distributors, and providers) that wish to use
Morinaga’s trademarks of "Angel" join CSR activities that contribute to the improvement of environments forchildren’s education and training, in lieu of paying a royalty.
In FY2020/3, the project’s scope has been expanded to the use of patent rights, and, as the fruit of an initiative torevitalize the local economy, which was jointly undertaken by Kawasaki City, Kawasaki Instituter of Industrial
Promotion, and Kawasaki Shinkin Bank, a new product Angel no Hoppe (angel’s cheeks), a Daifuku confection
flavored with powdered green tea and chocolate, was launched by Kashisho Suehiroan, a Japanese-sweets
manufacturer, utilizing Morinaga’s patented technology.

Collaboration with Schools and Organizations

As part of our educational courses on resolving social issues, we present lectures at the seminars sponsored byvarious organizations such as high schools, consumer groups, NGOs, and government bodies. In 2018, membersof the CSR Group in the Corporate Communication Division gave a lecture on the One Chocolate for One Smile
project at Ritsumeikan Moriyama Senior High School in Shiga Prefecture, in response to its request. The lecture,
which was delivered in an active-learning format, provided students with an opportunity to learn about a variety ofsocial issues and to consider ways to contribute to the international cooperation. The students enthusiasticallycontributed opinions and presented concrete proposals.

A lecture at a school

Contributions to Areas Home to Our Headquarters or
Offices
As a member of the Minato Net, a network comprising CSR personnel from companies whose headquarters oroffices are located in Minato Ward, Tokyo, Morinaga is eager to exchange information with them and contribute to
the Minato community. We have also joined the Minato Community Welfare Forum since 2016.
Further, we participate in local cleanup activities in the areas near our factories and offices to promote
communication with the local communitie

Supporting activities to improve the environment in Rakujuen, Mishima City

Home > The Morinaga Group’s Sustainability > Social Contributions > Together with Employees

Together with Employees
Diversity

The Morinaga Group’s
Sustainability

Basic Concept

Sustainable
Management

The Morinaga Group promotes diversity as a management strategy.
Our objective in promoting diversity is to encourage employees to work enthusiastically while demonstrating their

Sustainable Management
Stakeholder Engagement

individual strengths, as well as to generate innovation while showing respect for each other and exchanging

Sustainability Policies ＆knowledge.

Guidelines

To this end, we are undertaking initiatives that include health management, human resource development, andworkstyle reform.

Environmental
Initiatives
Environmental Management

Diversity Promotion System

Environmental Load
Generated by Business
Activities

In April 2020, in an effort to position diversity at the centerpiece of its management strategy, Morinaga establishedthe Diversity Promotion Office as a direct report to the President. Our diversity promotion efforts began in 2001
when the Company started its initiative to promote women’s empowerment with a goal of creating an organization
where women can demonstrate their abilities and play an active role. Later, in FY2013/3, Morinaga appointed theDiversity Promotion Team to accelerate the initiative. As society increasingly considers that maintaining a job even

Realization of a Low-Carbon
Society
Creating a Circular Economy
Environmentally-friendly
Packaging Materials
Initiatives to Resolve

after a childbirth or during child care is a more usual option than quitting a job, roles of corporations’ diversity

Environmental

initiatives is shifting from the creation of an organization where employees can have a long career to the creation

Pollutantsof organization that can provide job satisfaction to all employees. In order to pursue the happiness of each andInitiatives for Biodiversity

every customer and employee and continue to be a company recognized and selected by society, we will continue

Effective Use of Water

to promote activities toward the goal of leveraging each person’s individuality, engaging all of them in the activities.

Resources
Environmental Accounting

Social Contributions
Together with Customers
Together with Children
Collaboration with Social
Groups/Non-affiliate
Companies/Organizations
Together with Employees

GovernanceCorporate GovernanceCompliance
Risk Management
Respect for Human Rights

Initiatives of
Sustainable Raw
Material Procurement
Medium-term Goal for
Sustainable Raw Material

Morinaga Group Diversity and Inclusion Policy

Procurement

GRI Standards Index

Workstyle Reform
We aim to create an organization that enables our employees to demonstrate their creativity to the full potential
through: 1) the implementation of flexible work hours and locations; and 2) the use of ICTs and office functions. We
have taken various measures including the introduction of telework arrangements for 1) above, as well as the
adoption of a free-address system to replace the conventional arrangement of desks at the headquarters, researchlab, certain sales branches, and factories for 2).

Telework system
In April 2017, Morinaga introduced a telework program that covers approximately 1,000 employees. At the time of
the introduction, we made some enhancements to our facilities and institutional arrangements, such as the use of
ICTs and the removal of the core time requirements from the flexible work arrangements. In FY2020/3, more than
80% of eligible employees used the telework program, achieving a good balance between work and childcare, as
well as a higher efficiency through an effective use of traveling time.
In March 2020, the scope of eligible employees was expanded to associate employees. As of May 2020, thenumber of employees eligible to the program has reached approximately 1,400.

Other programs that support work-life balance
Morinaga has established a workplace environment in which employees in different life stages can demonstrate
their abilities and play an active role, while feeling motivated to grow further. This environment was achieved
through the implementation of various employee programs, including the childcare leave program that is available
to both male and female employees, as well as other programs that reduce the workload of employees who havean infant, child, or parent who needs care (see the table on p. 30).
Furthermore, Morinaga has been certified by the government as a “parent-friendly company” for the sixth
consecutive term since 2007, and has continuously achieved the Platinum Kurumin* certification criteria since
September 2017. In FY2020/3, we set a primary goal of increasing the percentage of male employees who takechildcare leave, and implemented relevant measures such as a revision of manuals, negotiation with the All
Morinaga Labor Union, and approaching individual male employees. As a result, the percentage increased 2.9
times compared to the previous year.

CSR Report
ESG Data

*

The Platinum Kurumin
A certification mark is granted by the Ministry of Health, Labor and Welfare to companies that provide support to their employees
who want to achieve a good work-childcare balance and implement high-level initiatives as a parent-friendly company.

Initiatives for Health Management
Health Management Initiatives
Morinaga’s health management
By supporting the maintenance and enhancement of the health of employees—who are the source of ourcorporate vitality and our most important assets—and their families, Morinaga promotes health management inorder to create a company where it is rewarding to work and that enriches the lives of each employee.
In April 2018, we issued the Morinaga Health Declaration. Led by the Chief Health Officer (CHO), our Health
Promotion Committee is active to strengthen collaborations with occupational health staff and the Morinaga Health
Insurance Association, accelerate the promotion of health management, and promote various initiatives by seeing
employees’ health from a managerial perspective.
By definition, the CHO is the chief executive who is responsible for helping a company or organization recognize
its employees’ and their family members’ health as part of corporate management, and carrying out healthmanagement systematically as a member of management, for employees and others.
The Morinaga Group will continue to actively support its employees’ and their family members’ mental andphysical health through work style reform and health maintenance/promotion activities, in an effort to establish afoundation for active and extended work life.

Practice of Morinaga Calisthenics
Since October 2018, Morinaga Calisthenics, which were devised by the Morinaga Training Lab,* have beenpracticed every day at all Morinaga offices and factories. These simple exercises can be performed in theworkplace and are helpful in ameliorating stiff shoulders and preventing back pain.
They were devised by the Lab’s staff to enhance employees’ health and work performance, based on theknowledge they gained during supporting top athletes.
Furthermore, in FY2020/3, we held an app-based walking event to help all Morinaga employees nationwide
improve their health and exercise habits.

A Morinaga Calisthenics session in progress*

Morinaga Training Lab: A training facility focused on the improvement of top athletes’ performance through training, nutrition, andconditioning programs.

Recognized as The Certified Health and Productivity Management
Organization in the White 500 category
For three consecutive years from 2018 through 2020, Morinaga was certified as The Certified Health andProductivity Management Organization in the White 500 (large enterprise) category. This program awards
enterprises that practice particularly outstanding health management based on health promotion initiatives. In the
future, we will continue our efforts to create and maintain a workplace environment that allows employees toactively and enthusiastically demonstrate their maximum capabilities and to proactively support the maintenanceand improvement of the physical and mental health of all employees.
Under our Vision and Mission, we will focus on the expansion of the health product segment.

Initiatives to Reduce Overtime Hours

We are committed to helping our employees have a wide range of work-style options through company-wide
initiatives such as the telework arrangements and Premium Friday, as well as experimental efforts at some offices,
including No Overtime Day, rules for leaving work on time, and personal-choice holidays. As a result of these
initiatives, Morinaga & Co. Ltd. successfully reduced the overtime work of FY2019 by 26 hours per person in
average, compared to FY2019/3.

Occupational Health and Safety Initiatives
Based on the idea that “employees are the source of corporate vitality and the most important management
resource,” the company’s labor and management work together to create a safe and comfortable working
environment, by, for example, establishing the Health and Safety Committee, carrying out workplace safety andhealth patrols, providing safe driving training, and holding anti-overtime labor-management meetings.
We are also stepping up our health management efforts in collaboration with the Health Insurance Society, by
encouraging employees to have health checkups and follow post-diagnosis health guidance to prevent lifestylerelated diseases.
We are also focusing on the prevention of mental health problems by taking various measures such as the setting
up of an external point of consultation and providing employee training sessions.
Furthermore, in FY2020/3, we achieved zero lost time injuries for the first time, by ensuring that all employees
receive safety education that will be reviewed as necessary, while taking safety measures for using company
equipment. The rate of frequency is on a downward trend from 3.07 in FY2018/3 to 2.02 in FY2019/3 to 1.05 in
FY2020/3, illustrating the results of our daily safety efforts.

Human Resource Development
Basic Concept

A company’s growth depends on its individual employees’ development.
We consider that human resource development is an important strategic challenge that must be overcome not only
to achieve our vision and mission but to ensure an enduring growth. Based on the concept above, we continue tosupport the growth of each and every employee.

Morinaga Group’s Ideal Employee Profile
To prepare for the next new age, the Morinaga Group is looking for personnel who are highly motivated, eager totake on challenges, and capable of creating new value. The Group has defined an ideal employee profile andbroken it down into the following four characteristics: 1) capable of taking on challenges; 2) capable of acting
independently; 3) capable of thinking thoroughly; and 4) capable of engaging others.

Human Resource Development Framework
In an effort to promote human resource development, we support our employees’ growth by providing training andeducational opportunities according to their job grade, division, and skill, taking into account qualifications required
for an employee of Morinaga & Co., Ltd.
Moreover, to ensure effective upgrading of employee skills, we adopted the Human Resource Development
Program—a new framework for human resource development—in FY2019/3, and are expanding the scope of
employees subject to the Program in sequence.
Aimed at clearly defining individual employees’ growth path and properly running a training PDCA cycle on site,
the Program consists of three phases: assessment, development of a training plan based thereon, andimplementation of the plan. In the assessment phase, the person subject to the training identifies his/her own
strengths and weaknesses jointly with his/her supervisor according to the definition of capabilities required for all
Morinaga employees regardless of the job type, and develop an annual OJT- and Off-JT-based training plan. In theimplementation phase, an interview session is held every quarter to review the employee’s performance andconfirm programs scheduled in the future. When these phases are completed, a training PDCA cycle is run.。

Morinaga’s Human Resource Development System
We view OJTs, Off-JTs, and self-development as the three pillars of our human resource development system. The
system is aimed at supporting the growth of our employees based on the career path envisioned by each of themand helping them achieve self-actualization. In pursuit of the aim, the system provides varied training programs
ranging from on-the-job trainings (OJTs) to job-rank-based and other off-the-job trainings (Off-JTs) to selfdevelopment training programs such as distance learning and e-learning programs.
We also actively support employees’ efforts to acquire qualifications, by providing official qualification acquisition
incentives and offering a license acquisition course as part of the self-development training (distance learning).

Home > About Us > Corporate GovernanceCorporate GovernanceCorporate GovernanceCompliance

Risk Management

Respect for Human Rights

About Us

Corporate Governance Basic Policy

Message from the

The Morinaga Group will enhance its corporate governance with the aim of maximizing corporate value andCorporate Principles

achieving enduring corporate growth based on the basic policies of improving the health and efficiency of

Our episode based on

management, ensuring the reliability of its financial position, providing timely and appropriate disclosure of
information, complying with laws and regulations, and strengthening the trust and relationships with all

President

altruism
Code of Conduct
Standards of Behavior

stakeholders.

(1) Positioning of Stakeholders

Corporate Profile

To enable us to fulfill our social responsibility in all areas of our business activities, we are committed toIntroduction ofmaintaining and further developing strong relationships with all stakeholders, who sustain our company, andBusiness Fields

achieving coexistence with society and sustainable growth in accordance with corporate principles and the code of
conduct.

(2) Management Monitoring Functions

Business Office Guide
Group Network

We are committed to building an effective internal control system by strengthening the management monitoring

Corporate Development

functions of the Board of Directors, appointing outside Directors and Statutory Auditors, requiring attendance by

and History

Standing Statutory Auditors at important meetings, and placing the Audit Division under the direct control of the

Meiji/Taisho Eras

President.

Showa Era
Heisei Era(3) Consistency in Thinking within the Entire Group
While respecting the independence of our subsidiaries, we endeavor to maintain close ties amongst the Group’s

Corporate

member companies.

GovernanceCorporate Governance System
Management of Corporate Affairs
Morinaga’s “Rules on Decision-Making Criteria” states clear definitions of authority and responsibility for respective
decision-making units, including the Board of Directors, Management Meetings, Directors, Executive Officers, andGeneral Managers of individual divisions and departments.

＜Board of Directors＞
The Board of Directors deliberately makes decisions on statutory matters and the execution of important businessbased on the business judgment principle and supervises the execution of business. The Board consists of eleven
Directors, out of which four are Outside Directors, seven are male, and four are female Directors.

＜Management Meetings＞
Management Meetings, which is mainly comprised of Directors and Standing Statutory Auditors, deliberates andmakes decisions on important management themes and other matters for which authority is delegated by the
Board of Directors. To ensure the effectiveness and efficiency of deliberations at the Board of Directors andManagement Meetings, sufficient prior discussions are made at various committees that serve as advisory bodies
for the Boards. These committees include the IR Committee, which is concerned with information disclosure, andthe Officer Appointment and Remuneration Committee, a forum to discuss matters concerning Directors’
personnel and remuneration matters.

＜Executive Officer System＞
With the aim of increasing the agility to respond to the changing business environment and accelerating thedecision-making process, Morinaga has adopted an executive officer system. With this move, the Company
delegated authority and responsibility for executing regular business relating to the implementation of strategies to
Executive Officers, ensuring efficient management and a clarification of responsibilities for business execution.

CSR Issues Discussed at the Board of Directors
In FY2021/3, the Board of Directors discussed the following matters related to CSR:

- Product and monetary donations toward battle against COVID-19
The Board passed a resolution to donate products including 370,000 in Jelly products as well as \1 million to
medical professionals responding the COVID-19 pandemic.

- Risk management
Implementation of risk management and challenges in FY2020/3; activity plan for the current year

- Compliance
Compliance efforts and challenges in FY2020/3; activity plan for the current year

- Customers’ voice and feedback
The Board discussed response to customers’ opinions and requests and associated issues

- Assessment of the Board’s effectiveness
The Board discussed whether it was functioning effectively based on third-party assessments and agreed on
the issues towards improvement.

- Internal Control
The Board confirmed the effectiveness of internal control and approved the internal control report.

Auditing System
We have four Statutory Auditors, including three Outside Statutory Auditors. One of these three Outside Statutory
Auditors is a Standing Statutory Auditor, and all of the four Statutory Auditors are male. In accordance with the
Guidelines for Auditors, Statutory Auditors audit the Directors’ performance of their duties based on the Rules on
Statutory Auditors’ Audit. Standing Statutory Auditors hold regular meetings with the Representative Director andattend management meetings of the Board of Directors and other important gatherings to audit the Directors’
performance of their duties. Audit Division, which is responsible for carrying out internal audit, directly reports to
the President. Composed of five members, the Division audits all divisions (including subsidiaries) in a planned
manner, and exchanges opinions with the divisions jointly with Standing Statutory Auditors. To ensure close
cooperation, opinion exchange sessions are held regularly and as needed basis between all Statutory Auditors
and the Accounting Auditor, as well as between Standing Statutory Auditors and the General Manager of the Audit
Division. The General Manager of the Audit Division and the Standing Statutory Auditors attend the meetings ofthe Internal Control Steering Committee, which is composed of members selected from major divisions anddepartments, and exchange opinions with the Committee members on a regular basis. Morinaga appointed
Deloitte Touche Tohmatsu LLC as its accounting auditor.

Basic Policy on Officer Remuneration and Compositionof Officer Remuneration（1）Executive Remuneration Basic Policy
The Company’s Executive Remuneration Basic Policy stipulates that the Company shall establish and operatea system that prioritizes the strengthening of executives’ motivation for contributing to the enhancement ofcorporate value over the medium- to long-term and the achievement of sustainable growth, while discouraging
excessive risk-taking. We are determined to continue pursuing a better remuneration system, ensuring theobjectivity and transparency of the remuneration determination process and taking into account regulatory
revisions and social trends in the future.

（2）Content of Executive Remuneration Systema.

Level of executive remuneration and structure

The Company’s executive remuneration is determined in accordance with the Executive Remuneration BasicPolicy stated in the above item 1, referring to the levels of executive remuneration paid by leading companies
that are similar in size to the Company.
Remuneration for Directors (excluding Outside Directors and non-residents of Japan) consists of basic
compensation, which is paid monthly, executive bonuses (monetary remuneration), and stock compensation.
Basic compensation consists of fixed remuneration according to job title (70%) and performance-based
remuneration according to the business performance for the previous fiscal year (30%). Executive bonuses arepaid at a specified time following the approval and resolution by the General Meeting of Shareholders. 10% of
the amount of basic compensation for Directors (excluding Outside Directors and non-residents of Japan) is
provided as stock compensation, which is non-monetary remuneration, for the purpose of motivating them tomake contributions to an improvement of medium- to long-term performance and corporate value.
b.

Matters concerning performance-linked remuneration

Performance-linked remuneration consists of monetary remuneration in the amount equivalent to 30% of basic
compensation, executive bonuses to be paid when the performance is at a certain level, and stockcompensation, which is non-monetary remuneration.
The amount of performance-linked remuneration is calculated based on financial performance indicators,
including the Group’s consolidated operating income, as well as individuals’ performance evaluation.
c.

Content of non-monetary remuneration

As non-monetary remuneration, stock compensation equivalent to 10% of the amount of basic compensation for
Directors (excluding Outside Directors and non-residents of Japan) is provided for the purpose of motivatingthem to make contributions to an improvement of medium- to long-term performance and corporate value.
Regarding stock compensation, during the trust period, the Company awards a certain number of points to
Directors (excluding Outside Directors and non-residents of Japan) each year according to job title, the degreeof achievement of the financial performance targets (consolidated operating income, etc.), etc. in each fiscal
year, and the points will be accumulated. When a Director satisfies the beneficiary requirements, according tocumulative points, the Director will receive delivery of shares of the Company and money equivalent to theamount obtained through the conversion of such shares into cash through the trust for the board incentive plan
(BIP). In principle, delivery will be after retirement.

（3）Matters concerning Resolution by the General Meeting of Shareholders about
Remuneration for Directors and Statutory Auditors
At the 169th Annual General Meeting of Shareholders held on June 29, 2017, the maximum amount of
remuneration for Directors was resolved to be 500 million yen per annum (including the maximum 40 million yen
per annum for Outside Directors and excluding the employee salaries of Directors who concurrently serve as
employees). The number of Directors immediately following the conclusion of the said Annual General Meetingof Shareholders was 11 (including 2 Outside Directors). Moreover, separately from the said monetary
remuneration, at the 170th Annual General Meeting of Shareholders held on June 28, 2018, the introduction ofa performance-linked stock compensation plan using a trust for Directors (excluding Outside Directors and nonresidents of Japan) was approved. The maximum amount of cash to be contributed by the Company for eachtarget period covering 3 fiscal years is 180 million yen in total.
The maximum amount of remuneration for Statutory Auditors was resolved at the 169th Annual General
Meeting of Shareholders held on June 29, 2017 to be 80 million yen per annum. The number of Statutory
Auditors at the conclusion of the said Annual General Meeting of Shareholders was 4.

（4）Policy on Determination of Remuneration for Individual Directorsa.

Method of determination of the policy on determination of remuneration for individual Directors

The Board of Directors drafted the policy on determination of remuneration for individual Directors (hereinafterreferred to as the “Determination Policy”) based on the Executive Remuneration Basic Policy stated above,
consulted the Officer Appointment and Remuneration Committee, and resolved the Determination Policy at a
meeting of the Board of Directors, according respect to the report of the Officer Appointment and Remuneration
Committee.
b.

Summary of the Determination Policy（ⅰ）Basic compensation
Basic compensation is fixed remuneration paid monthly and is determined according to job title,
responsibilities, and the number of years in office, taking into consideration the remuneration level of othercompanies, the Company’s financial performance, the level of employee salaries, etc., in a comprehensive
manner. The amount equivalent to 30% of the basic compensation is determined, taking into consideration thefinancial performance in the previous fiscal year, etc.
（ⅱ）Executive bonuses
Executive bonuses are monetary remuneration according to job title, responsibilities, performance, etc. andtheir payment will be determined following the resolution by the General Meeting of Shareholders.
（ⅲ）Stock compensation
Stock compensation equivalent to 10% of the amount of basic compensation is provided as non-monetary
remuneration for the purpose of motivating Directors to make contributions to an improvement of medium- tolong-term performance and corporate value.
c.

Reasons that the Board of Directors judged that the content of remuneration for individual Directors for the

fiscal year under review is in accordance with the Determination Policy
In determining the content of remuneration for individual Directors, the Officer Appointment and Remuneration
Committee examined the draft from multifaceted perspectives. The Board of Directors respects the report of theCommittee, in principle, and judges that the content of remuneration for individual Directors is in accordancewith the Determination Policy.

（5）Matters concerning Delegation of Authority concerning Determination of Remuneration
for Individual Directors
The Board of Directors has resolved to delegate President and Representative Director to determine details of
the amounts of remuneration for individual Directors. The authority pertains to determination of the amount ofbasic compensation for each Director and evaluation of the performance-linked portion of each Director. Suchauthority was delegated to the President and Representative Director because the President andRepresentative Director is the most suitable person to evaluate each Director from a broad perspective,
considering the Company’s overall financial performance. In order to ensure that the authority is appropriately
exercised, the Board of Directors consults the Officer Appointment and Remuneration Committee, which
consists of Directors including Outside Directors, about the draft and the President and Representative Director
determines the individual amounts of remuneration based on the report of the Officer Appointment andRemuneration Committee.
Of monetary remuneration, payment of executive bonuses is determined by the resolution of the General
Meeting of Shareholders and determination of the individual amounts of bonuses shall be delegated to the
President and Representative Director, based on the resolution of the Board of Directors. The Board of
Directors consults the Officer Appointment and Remuneration Committee about the draft and the President andRepresentative Director determines the individual amounts of bonuses based on the report of the Officer
Appointment and Remuneration Committee.
Regarding stock compensation, which is non-monetary compensation, its maximum amount is the amountresolved at the General Meeting of Shareholders, separately from monetary remuneration. The Company
awards a certain number of points to Directors (excluding Outside Directors and non-residents of Japan) inaccordance with the provision of the “Share Delivery Rules” following consultation with the Officer Appointment
and Remuneration Committee and receiving its report.

Evaluation of the Effectiveness of the Board of Directors

（1）Method of analysis and evaluation
In regard to the effectiveness of the Board of Directors as a whole, the Company conducted a survey of all
Directors including Outside Directors, and all Statutory Auditors including Outside Statutory Auditors, fromFebruary to March this year, as it does each year. The survey covered the composition, operation, and agenda of
the Board of Directors, the nomination and remuneration of senior management, risk management, dialogue withshareholders, etc., systems to support the Board of Directors, and issues indicated in previous evaluations of theBoard of Directors. The Board of Directors conducted an exchange of opinions on the results of the survey, andeach Director executed an evaluation.
In addition, the results of the survey were analyzed and evaluated by a third-party law firm, in order to provide anexpert and objective opinion, and the evaluation of the Board of Directors was discussed and decided at a meetingof the Board of Directors held in April 2021, with reference to this third-party analysis and evaluation.

（2）Result of the evaluation
As a result of analysis and evaluation by the third-party law firm, the Company’s Board of Directors wasdetermined to be functioning effectively in fiscal 2020, in light of the Companies Act and the Corporate
Governance Code, without any significant dysfunction or structural deficiency, etc. Based on this evaluation, theCompany recognized that the Board of Directors was effective and functioning effectively in line with the basic
views on corporate governance, etc. of the Company.

（3）Initiatives for improvement
The following issues were identified in the evaluation of the effectiveness of the Board of Directors in the previous
fiscal year: optimization of the composition of the Board of Directors; establishment of appropriate matters forresolution and matters for reporting; further clarification of the decision process regarding Directors’ nomination
and remuneration; making thorough debate regarding risk management; making debate more active based on theperspectives of stakeholders; and making debate more active beyond each area of responsibilities. The Company
recognizes that a considerable degree of improvement has been achieved in these issues based on the evaluationof the effectiveness in fiscal 2020.

（4）Initiatives for the future
The Company recognizes the following issues for the future, in order to strengthen the function of the Board of
Directors, and further enhance its effectiveness and governance.
1) Ample discussions to step up risk management
2) Study to strengthen the function of the Board of Directors as a monitoring board
By implementing necessary measures to improve the above issues, based on this evaluation of the effectivenessof the Board of Directors, the Company intends to further enhance the effectiveness of the Board of Directors, andfurther strengthen corporate governance.

Changes in Our Response to the Corporate Governance
CodeInternal Controls
The Morinaga Group is committed to maximizing corporate value and achieving an enduring corporate growth bystrengthening our internal control system, increasing the management efficiency, operating its business properly,
and ensuring effective supervisory and audit practices. To ensure appropriate execution of duties, the Board of
Directors endeavors to establish an effective internal control system as well as a system of compliance to legal
requirements and internal rules including the Articles of Incorporation, while Statutory Auditors are responsible for
auditing the effectiveness and functionality of such systems. In addition, Morinaga and its subsidiaries home andabroad have introduced a helpline to collect a wide range of information about compliance issues take appropriate
measures against them.

Home > About Us > Compliance

ComplianceCorporate GovernanceCompliance

Risk Management

Respect for Human Rights

About Us

Promotion of Compliance

Message from theBased on its awareness that compliance is a priority issue for all business activities, the Morinaga Group

Corporate Principles

formulated the “Morinaga Code of Conduct/Standards of Conduct” in FY2002/3. In FY2009/3, it was revised to the

Our episode based on“Morinaga Group Code of Conduct/Standards of Conduct” to ensure that the Group can share a common
compliance management system.

President

altruism
Code of Conduct
Standards of Behavior

Furthermore, we set up the Compliance Committee to establish and promote the compliance management. As away to report compliance violations and seek consultation about compliance issues, we have established a
helpline system. Under the system, we set up three points of contact for consultation—within the Company, labor
union, and an external lawyer’s office—to prevent compliance violations from occurring.

Corporate Profile
Introduction ofBusiness Fields
Business Office Guide
Group Network
Corporate Development
and History
Meiji/Taisho Eras
Showa Era
Heisei Era

Corporate
Governance

Increasing Compliance AwarenessWith the aim of embedding a compliance culture into the organization, we display the Morinaga Group Code of
Conduct/Standards of Behavior on panels in each office, and distribute booklets and cards to all employees.
In order to increase compliance awareness, we provide compliance training not only as part of training sessions by
job class, including those for new recruits and newly appointed managers, but at such locations as theheadquarters and individual offices.
In addition, we conduct an annual compliance questionnaire that covers all employees working at a domestic
member company of the Group, and use it to identify the Group’s level of compliance and take appropriate
measures in the future.
Respect for Human Rights

Compliance Training Sessions
In FY2020/3, the secretariat of the Compliance Committee held the following compliance training sessions:

In addition to the above, respective branches, factories and other business offices, and affiliated companies
provide their own compliance training.

Home > About Us > Risk Management

Risk Management
Corporate GovernanceCompliance

Risk Management

Respect for Human Rights

About Us

Philosophy of Total Risk Management

Message from the

The Morinaga Group identifies total risk that potentially exists in its business activities and takes appropriate

Corporate Principles

measures against the risk based on the philosophy of total risk management.

Our episode based on(1) To Fulfill Corporate Social Responsibility

Standards of Behavior

President

altruism
Code of Conduct(i) Ensuring of the safety of employees and visitors(ii) Safeguarding of assets

Corporate Profile(iii) Early business recovery and ensuring of business continuity

Introduction of(2) To Gain Corporate Social Responsibility(i) Timely and appropriate information disclosure(ii) Contribution to local communities(iii) Humanitarian considerations

Major Risks and Responses

Business Fields
Business Office Guide
Group Network
Corporate Development
and History

In an effort to respond to potential risks existing in its business activities, the Morinaga Group established the

Meiji/Taisho Eras

“Total Risk Management Rules” in FY2002/3 as part of its internal control system. Based on the Rules, we classify

Showa Era

and assess possible risks and implement preventive measures in normal times. See the table below for major

Heisei Era

possible risks and countermeasures.
The Total Risk Management Rules includes various manuals such as the Natural Disaster Crisis Preparedness

Corporate

Manual, which sets out measures to ensure an early resumption of business in case of crisis. In FY2018/3, in an

Governanceattempt to take our business continuity plan (BCP) a step further, we began to work on the development ofbusiness continuity management (BCM), a framework of continuous improvements that allow the Company tocontinue operations even when being affected by a disaster or accident, or resume operations as early as possible
after an interruption.
In the event of a crisis, we will assess and judge the situation promptly, take necessary actions such as theestablishment of a task force and information disclosure, while conducting a cause analysis and implementing
recurrence prevention measures.
Further, to demonstrate our strong stance against anti-social forces, we appointed a person in charge ofpreventing unreasonable demands. We also work to collect information from related administrative agencies, and,in case of an emergency, we will take organization-wide actions swiftly, working closely with these agencies.

Major Risks Anticipated by the Morinaga Group and Responses Thereto
Risk Items

Assumptions

Anticipated Risks

1. Risks related to

The Group
recognizes that
ensuring foodsafety is thehighest priority
issue for a foodcompany.

There is a risk that, if alarge-scale recall or
product liability
compensation occurs due
to an unexpected quality
accident, our performanceand financial position are
negatively affected as aresult of incurrence ofsignificant costs and theGroup’s reputation being

food safety

damaged severely.

2. Risks in the
production
systemBasically, theThere is a risk that theCompany adopts
the oneproduct/one
factory
production
system.

Group's businessperformance and financial
position are negatively
affected in the event of alarge-scale disaster or
accident that may have asignificant impact not only
on the Group's production
and sales activities but on
consumers’ purchasing
behavior.

Response by theMorinaga Group• Establishment of the
Quality Policy and the
Quality Assurance
Rules to build asystematic quality
assurance framework• Introduction of FSSC
22000 andstrengthening of the
Quality Assessment
System• Crisis Response
Manuals should bereferred to in case of aquality accident.

• Identification of possible
measures for coreproducts as part of thebusiness continuity
management (BCM).

Risk Items

Assumptions

Anticipated Risks

Response by theMorinaga Group

3. Raw material
procurement risk

4. Weather, natural
disasters,
infectious
diseases, etc.
(environmental
and social risks inthe supply chain)

5. Leakage ofcorporate and/or
personal
information• Our primary
raw materials
are agricultural

There is a risk that the

information collection,
diversification of

products suchas wheat flour,cacao beans,and vegetableoils/fats.
• We use
petroleumproducts as
packagingmaterials.

event of price hike ordifficulties in acquiring asufficient volume of raw
materials due to suchreasons as poor crops
resulting from
unseasonable weather orpolitical instability in the
country of origin.

maintenance ofappropriate inventory
levels, forward
exchange contracts, etc.

• Products

There is a risk that theGroup’s performance andfinancial position are
negatively affected by astagnation of supply chain(mainly production andlogistics).

• Flexible production

In the event of an
unexpected information
leakage due to, forexample, an unauthorizedaccess using an
unforeseen technology,
there is a risk that our
performance and financial
position are negatively
affected as a result of
incurrence of significant
costs and the Group’s• Enhancement of thepurchasing
behavior ofwhich aresusceptible toweather
conditions.
• Unforeseen,
large-scale
naturaldisasters andinfectious
diseasepandemics
Information
systems cover allof the business
operations andhandle classified
data.

reputation being damaged
severely.
6. Businessexpansion into
overseas markets• Strengthening ofGroup’s performance andfinancial position are
negatively affected in the

As a global

There is a risk that thestrategy, we
expand ourGroup’s performance andfinancial position arebusiness into
overseas markets
through our
subsidiaries in
the UnitedStates, China,
Southeast Asia,
etc.

negatively affected in caseof unpredictable events
such as a war, terrorism,
political and socialchanges, changes in local
regulatory and taxation
frameworks, businesspractices, and sudden
exchange rate
fluctuations.

procurement sources,

management based on
the collection andanalysis of weather
information• Prompt establishment ofa task force as well as a
production and supply
system in case of anatural disaster,
infectious disease, etc.

Group’s preparedness
through theestablishment of
Personal Information
Handling Policy• In the unlikely event of
information leakage,
restore our reputation
by immediately
announcing the incident
and taking specificmeasures.

• Strengthening ofbusiness and risk
management systems
through informationcollection in hostcountries

Risk Items

Assumptions

Anticipated Risks

Response by theMorinaga Group7. Corporate Social
Responsibility• Strengthening ofCompliance with

A regulatory violation orlaws and social

anti-social behavior willcompliance with laws,

norms

entail a risk of legal
punishment, social

rules, and regulations

sanctions, loss of trust,and damage to thereputation and brand.

by establishing theMorinaga Group Codeof Conduct• Management ofcompliance risks by theCompliance CommitteeHome > About Us > Respect for Human Rights

Respect for Human Rights
Corporate GovernanceCompliance

Risk Management

Respect for Human Rights

About Us

Human Rights Policy

Message from the

The Morinaga Group considers that respect for human rights is an important corporate social responsibility. Based

Corporate Principles

on the Morinaga Group Human Rights Policy, each and every employee shall respect human rights, proceed with

Our episode based on

President

the creation of a workplace free from discriminations and harassments, and take human rights into consideration
on a supply chain-wide basis.

altruism
Code of Conduct
Standards of Behavior

Corporate Profile

Morinaga Group Human Rights Policy
Introduction of
As a member of the international community, the Morinaga Group respects fundamental
human rights, undertaking sincere business activities that do not tolerate human rights
violations.

Business Fields
Business Office Guide
Group Network

1. Respect for human rights and prohibition of discrimination
We respect fundamental human rights, and will not discriminate in any way based ona person’s race, gender, nationality, religion, ideology, age, or physical characteristics,
or for any other reason.

Corporate Development
and History
Meiji/Taisho Eras
Showa Era

2. Prohibition of harassment

Heisei Era

We will not participate in power harassment, sexual harassment, or any otherbehavior whatsoever that injures human dignity.

Corporate
Governance3. Consideration for safety/hygiene
We will give consideration to safety and hygiene in the workplace, endeavoring toensure a comfortable work environment, and respect employees’ fundamental humanrights.

4. Building and maintenance of good labor-management relations
We will respect the right to freedom of association and collective bargaining and otherfundamental rights, building and maintaining good labor-management relations.

5. Elimination of child labor/forced labor
In our various business activities, we will not accept child labor, forced labor, or any
other unfair labor practices.

(Established in May 2018)

Consideration for Employees’ Human Rights

Anti-harassment training
According to our pro-human rights policy, we set the elimination of harassments as a goal of our complianceactivities. In our compliance training sessions, we continuously provide educational programs designed to preventand raise awareness about power, sexual, and other harassments.
Such programs ranges from two types of anti-harassment trainings for executives (one are trainings provided byexternal lawyers targeting all executives of Morinaga, the other are those for Morinaga’s all General Managers
leading a division or department, heads of business offices, and executives of Group companies) to training
session videos that can be accessed online by every employee of the Company.

Identifying harassments through compliance survey
The Morinaga Group conducts a compliance survey in every December, targeting all employees working atdomestic Group companies (the number of respondents to the survey conducted in December 2019: 3,733), withthe view to determine the level of compliance in the Group on a regular basis. In the survey, we attach a special
attention to harassing behaviors and include questions asking whether the respondent was directly harassed or
saw or heard of a harassing behavior in the last 12 months and in any past year, respectively. Answers to thesequestions are tabulated separately so that we can have a detailed view of the Company’s level of compliance.
We also ask questions about the corporate culture that respects for workplace compliance as well as the
respondent’s view on the Company’s degree of engagement in the compliance management, in an effort to identify
our employees’ level of compliance awareness. The summary of the survey results is fed back to all the survey
respondents to share the understanding about the extent of the Group’s compliance.

Examples of questions in the compliance survey• Have you ever been a victim of a power or sexual harassment?
• In the workplace, do you consult or confirm with your supervisor or colleague when
you have any compliance or work-related questions? Alternatively, does yourworkplace have an atmosphere (environment) that allows such consultation orconfirmation?

Furthermore, as part of our proactive activities for an improvement of corporate culture, these results are used asa basis for holding interviews and opinion exchange sessions with respective business offices and making
proposals on possible measures to solve compliance issues.

Online anti-harassment trainingHome > The Morinaga Group’s Sustainability > Social Contributions > Initiatives of Sustainable Raw Material Procurement

Initiatives of Sustainable Raw Material Procurement
Basic Concept

The Morinaga Group’s

The Morinaga Group intends to contribute to the realization of a sustainable society by formulating the Morinaga
Group Procurement Policy, building equitable, fair, and transparent relationships with clients, and engaging sociallyand environmentally conscious procurement activities working together with the clients/business partners.

Sustainability
Sustainable
Management
Sustainable Management
Stakeholder Engagement

Morinaga Group Procurement Policy

Sustainability Policies ＆Guidelines

In order to realize food safety and reliability as well as a sustainable society, theMorinaga Group endeavors to build fair and equitable relationships with our business
partners and carry out procurement activities that are considerate of society and theEnvironmental
Initiatives
Environmental Management

environment.

Environmental Load
Generated by Business1. Compliance/adherence to social norms, etc.

Activities

We comply with laws and social norms, etc., carrying out healthy procurement
activities in accordance with the Morinaga Group’s Code of Conduct.

Realization of a Low-Carbon
Society
Creating a Circular Economy
Environmentally-friendly

2. Product quality/safety assurance

Packaging Materials

Placing top priority on customers’ safety and peace of mind, we strive to ensure
product quality in carrying out our procurement activities.

Initiatives to Resolve
Environmental
Pollutants

3. Strengthening partnerships

Initiatives for Biodiversity

We work together with our business partners with the common goals of “Customer
Delight” and “Customer First,” building relationships that enable mutual expansion.

Effective Use of Water
Resources
Environmental Accounting

4. Fair and equitable trading
Comprehensively taking into account efforts related to product quality, prices, delivery
deadlines, technological strength, and social/environmental aspects, we undertake
fair and equitable trading activities.

Social Contributions
Together with Customers
Together with Children
Collaboration with Social

5. Consideration for human rights/work environment/safety

Groups/Non-affiliate

Based on the Morinaga Group’s human rights policies, we carry out procurement
activities giving consideration to human rights, the work environment, and safety.

6. Consideration for the global environment

Companies/Organizations
Together with Employees

Governance

Based on the Morinaga Group’s environmental policies, we carry out procurement
activities aimed at realizing a sustainable society, giving consideration to the global
environment.

Corporate GovernanceCompliance
Risk Management
Respect for Human Rights(Established in May 2018)

Initiatives of
Sustainable Raw
Material Procurement

Supply Chain Management System

Medium-term Goal for
Sustainable Raw Material

In May 2018, in pursuit of sustainable procurement of raw materials, the Morinaga Group established its

Procurement

procurement policy under the leadership of Morinaga & Co., Ltd. Based on the policy, primary responsible
divisions—the Procurement Division, the Marketing Headquarters, and the Sustainable Management Department

GRI Standards Index—develop plans, set goals, and assess activities undertaken by the Group’s member companies.

CSR Report
ESG Data

Medium-term Goal Setting for Sustainable Raw Material
Procurement
In October 2020, Morinaga & Co., Ltd. set new medium-term targets for procuring 100 percent of its cacao beans,palm oil, and paper (for product packaging) as sustainable raw-materials, in order to contribute to realizing asustainable society through food.
Medium-term Goal for Sustainable Raw Material Procurement

Medium-term Goal for Sustainable Raw Material
Procurement
Morinaga & Co., Ltd. is making efforts to realize a sustainable society through food and resolve social issues
through its business activities by pursuing initiatives such as choosing FSC®-certified paper when procuring raw

The Morinaga Group’s
Sustainability

materials, and biomass plastics and inks, and reducing its use of plastics.
The Company considers its key tasks as a food manufacturer to be delivery of safe, reliable products to customers
and procurement of sustainable raw materials that are not harmful to the global environment or society.
Accordingly, it has now set medium-term targets for its products in Japan.
The Company will continue coordinating and collaborating with its stakeholders to pursue sustainable procurement
throughout its supply chains.

Sustainable
Management
Sustainable Management
Stakeholder Engagement
Sustainability Policies ＆Guidelines

Morinaga Group Procurement Policy

Environmental
Initiatives
Environmental Management
Environmental Load
Generated by Business
Activities
Realization of a Low-Carbon
Society
Creating a Circular Economy
Environmentally-friendly
Packaging Materials
Initiatives to Resolve
Environmental
Pollutants
Initiatives for Biodiversity
Effective Use of Water
Resources
Environmental Accounting

Social Contributions
Together with Customers
Together with Children

Cacao beans

Collaboration with Social
Groups/Non-affiliate
Companies/Organizations

Cacao beans, a key raw material for chocolate, are associated with a range of social issues

Together with Employees

including poor working conditions for cacao farmers, poverty, child labor, and global warming due todeforestation. During FY 2020 (the fiscal year ending March 31, 2021), the Company started using

Governancecertified cacao beans (Cocoa Horizons*-certified cacao supplied by the Barry Callebaut Group) in

Corporate Governancesome of its chocolate products. These certified cacao beans contribute to resolving the social

Complianceissues described, facilitating sustainable procurement. The Company aims to switch 100 percent

Risk Managementof the cacao beans used in its products in Japan to beans from sustainable sources by FY

Respect for Human Rights

2025 (the fiscal year ending on March 31, 2026).
*

Cocoa Horizons
Cocoa Horizons is a non-profit program run by the Cocoa Horizons Foundation, an NPO whose vision is toInitiatives of
Sustainable Raw

promote the prosperity of cacao farmers by building self-sustaining communities that protect nature andMaterial Procurement

children. By using cacao raw materials that meet the Cocoa Horizons Foundation’s certification standards, theMedium-term Goal for

Company can contribute to cacao farmer prosperity, reduced deforestation and CO2 emissions, and theSustainable Raw Material

eradication of child labor.

Procurement

CSR Report
ESG Data

Palm oil
Although palm oil is used in a wide range of products including processed foods and detergents,
environmental destruction and human rights problems in producing regions have become social
issues. Like other companies, the Company uses palm oil in many of its products, and regards it asnecessary to switch to certified palm oil (e.g., RSPO*-certified) that contributes to sustainableprocurement. The Company aims to switch 100 percent of the palm oil used in its products inJapan to palm oil from sustainable sources by FY 2023 (the fiscal year ending on March 31,2024).
*RSPO (Roundtable on Sustainable Palm Oil)
https://rspo.org/

Paper
Japan relies on imports for around 70 percent of the paper raw materials it uses, and theincorporation of illegal timber products into these raw materials has become an issue. The
Company aims to help prevent global warming by making effective use of timber resources that are
not associated with illegal logging or destruction of ecosystems, and are not harmful to theenvironment or local communities. To that end, it has started environmentally conscious
procurement of raw materials such as FSC®*1-certified paper*2 and recycled paper. The Company
aims to switch 100% of the paper (for product packaging*3) used in its products in Japan topaper from sustainable sources by FY 2022 (the fiscal year ending on March 31, 2023).
*1 FSC® (Forest Stewardship Council®): An international NPO that works to ensure that forests are usedappropriately and protected
https://www.fsc.org/en*2 FSC®-certified paper: Paper made of raw materials from managed sources of supply, including raw materials
that have been assessed and certified as deriving from forests where forest management and logging arecontrolled appropriately to preserve ecosystems as a means of environmental conservation.
*3 Paper (for product packaging) refers to container wrapping paper and packaging material.

Reference: Morinaga & Co., Ltd.’s initiatives to procuresustainable raw materials (during 2020)
The Company starts using Cocoa Horizons-certified cacao (news release posted on English-language website
on September 8, 2020)
The Company reduces plastic used for in Jelly packaging and starts using biomass ink (news release posted on
English-language website on February 17, 2020)

GRI Standards

Disclosures

Medium of publication

The Morinaga Group’s
Sustainability

GRI 101: Foundation 2016

Sustainable

General Disclosures
102: General
Disclosures (2016)

Management
102-1

Name of the organization

Corporate Profile

Sustainable Management
Stakeholder Engagement

102-2

Activities, brands, products, andservices

Introduction ofBusiness Fields
Providing Value
through Food
Providing Productsthat Contribute to
Healthy and Happy
Lifestyle102-3

Location of headquarters

Corporate Profile

102-4

Location of operations

Business Office
GuideGroup Network

102-5

Ownership and legal form

Corporate Profile

102-6

Markets served

Corporate Profile

102-7

Scale of the organization

Guidelines

Environmental
Initiatives
Environmental Management
Environmental Load
Generated by Business
Activities
Realization of a Low-Carbon
Society
Creating a Circular Economy
Environmentally-friendly
Packaging Materials
Initiatives to Resolve
Environmental
Pollutants

Introduction ofBusiness Fields

Initiatives for Biodiversity

Group Network

Resources

Corporate Profile
ESG Data (Social)

102-8

Sustainability Policies ＆Information on employees andother workers

ESG Data (Social)

Supply chain

Our Value Chain andResponse to Social
Issues

Effective Use of Water
Environmental Accounting

Social Contributions
Together with Customers
Together with Children
Collaboration with Social

102-9

102-10Significant changes to theorganization and its supply chain

Groups/Non-affiliate
Companies/Organizations
Together with Employees

GovernanceCorporate GovernanceCompliance
Risk Management
Respect for Human Rights

Initiatives of
Sustainable Raw
Material Procurement
Medium-term Goal for
Sustainable Raw Material

GRI Standards

Disclosures

Medium of publication

Procurement

GRI 101: Foundation 2016

GRI Standards Index

General Disclosures

CSR Report102-11

Precautionary Principle or approach

Initiatives of
Sustainable Raw
Material Procurement(Basic Concept)
Environmental
Management (Basic
Concept)
Corporate
GovernanceCompliance
Risk Management
Respect for Human
Rights102-12External initiatives

Sustainable
Management
Initiatives for
Biodiversity102-13

Membership of associations

102-14

Statement from senior decisionmaker

Message from the
President

102-15Key impacts, risks, andopportunities

Message from the
President
Our Value Chain andResponse to Social
Issues102-16

Values, principles, standards, andnorms of behavior

Corporate Principles
Sustainable
Management (BasicCSR Policies)
Together with
Customers(Commitment to
Quality)
Initiatives of
Sustainable Raw
Material Procurement
Together withChildren (Philosophyof Activities)
Environmental
Management (Basic
Concept)

102-17

Mechanisms for advice andComplianceconcerns about ethics
102-18Governance structure

Corporate
Governance(Corporate
Governance System)

102-19Delegating authority

Corporate
Governance(Corporate
Governance System)ESG Data

GRI Standards

Disclosures

Medium of publication

GRI 101: Foundation 2016
General Disclosures102-20Executive-level responsibility foreconomic, environmental, andsocial topics

Sustainable
Management(Sustainability
Promotion
Framework)
Together with
Customers(Communication with
Customers)
Initiatives of
Sustainable Raw
Material Procurement
Together with
Employees (Diversity)
Together with
Employees (Initiatives
for HealthManagement)
Environmental
Management(Environmental
Management System)
Corporate
Governance(Corporate
Governance System)
Compliance(Promotion ofCompliance)

102-21

Consulting stakeholders on
economic, environmental, andsocial topics

Sustainable
Management (TheProcess for
Reviewing Our CSR
Basic Policy and CSR
System)Stakeholder
Engagement
Together with
Customers(Communication with
Customers)

102-22Composition of the highest
governance body and its
committees

102-23Chair of the highest governanceCorporate
Governance(Corporate
Governance System)body
102-24

Nominating and selecting thehighest governance body102-25

Conflicts of interest

ESG Data(Governance)

GRI Standards

Disclosures

Medium of publication

GRI 101: Foundation 2016
General Disclosures102-26

Role of highest governance body insetting purpose, values,andstrategy

Sustainable
Management(Sustainability
Promotion
Framework)
Together with
Customers(Communication with
Customers)
Initiatives of
Sustainable Raw
Material Procurement
Together with
Employees (Diversity)
Together with
Employees (Initiatives
for HealthManagement)
Environmental
Management(Environmental
Management System)
Corporate
Governance(Corporate
Governance System)
Compliance(Promotion ofCompliance)

102-27

Collective knowledge of highest
governance body102-28

Evaluating the highest governancebody's performance102-29Identifying and managing
economic, environmental, andSustainable
Management(Measures to Embed
into the Organization)
Corporate
Governance(Assessment of theBoard’s effectiveness)social impacts
102-30Effectiveness of risk management
processes

Corporate
Governance (Internal
Controls)
Risk Management

GRI Standards

Disclosures

Medium of publication

GRI 101: Foundation 2016
General Disclosures102-31

Review of economic,
environmental, and social topics

Sustainable
Management(Sustainability
Promotion
Framework)
Together with
Customers(Communication with
Customers)
Initiatives of
Sustainable Raw
Material Procurement
Together with
Employees (Diversity)
Together with
Employees (Initiatives
for HealthManagement)
Environmental
Management(Environmental
Management System)
Corporate
Governance(Corporate
Governance System)
Compliance(Promotion ofCompliance)

102-32Highest governance body's role insustainability reporting

102-33

Communicating critical concerns

102-34Nature and total number of criticalconcerns102-35

Remuneration policies

Corporate
Governance (Basic
Policy and Structureof Executive
Remuneration
System)102-36

Process for determining
remuneration

Corporate
Governance (Basic
Policy and Structureof Executive
Remuneration
System)102-37

Stakeholders' involvement inremuneration

102-38Annual total compensation ratio

102-39Percentage increase in annual totalcompensation ratio

Compliance(Promotion ofCompliance)

GRI Standards

Disclosures

Medium of publication

GRI 101: Foundation 2016
General Disclosures
102-40

List of stakeholder groups

Stakeholder
Engagement102-41

Collective bargaining agreements

Human Resource
Development

102-42

Identifying and selecting
stakeholders

Stakeholder
Engagement102-43

Approach to stakeholder
engagement

Sustainable
Management (TheProcess for
Reviewing Our CSR
Basic Policy and CSR
System)Stakeholder
Engagement102-44

Key topics and concerns raised

102-45

Entities included in the consolidated
financial statements

Editorial Policy

102-46

Defining report content and topic
Boundaries

Editorial Policy

102-47

List of material topics

102-48

Restatements of information

102-49Changes in reporting

102-50

Reporting period

Editorial Policy

102-51

Date of most recent report

Editorial Policy

102-52

Reporting cycle

102-53

Contact point for questions
regarding the report102-54Claims of reporting in accordancewith the GRI Standards

102-55

GRI content index

102-56External assurance

103-1

Explanation of the material topic
and its Boundary

103-2

The management approach and its
components

103-3

Evaluation of the management
approach

Material topics
103: Management
Approach (2016)

Editorial Policy

GRI Standards Index

GRI Standards

Disclosures

Medium of publication

GRI 101: Foundation 2016
General Disclosures
201: Economic
Performance (2016)

201-1

Direct economic value generated
and distributed

Collaboration withSocial Groups/Nonaffiliate
Companies/Organization(Collaboration with
NPOs—Contribution
to cacao producing
countries)
Environmental
Accounting

201-2

Financial implications and otherrisks and opportunities due toclimate change

201-3

Defined benefit plan obligations andother retirement plans

201-4

Financial assistance received fromgovernment

202-1

Ratios of standard entry level wage
by gender compared to local
minimum wage

202-2

Proportion of senior management
hired from the local community

203-1

Infrastructure investments andservices supported

203-2

Significant indirect economic
impacts

204: Procurement
Practices (2016)

204-1

Proportion of spending on local
suppliers

205: Anti-corruption(2016)

205-1

Operations assessed for risks
related to corruption

205-2

Communication and training aboutanti-corruption policies andproceduresCompliance(Compliance Training
Sessions)

205-3

Confirmed incidents of corruption
and actions taken

ESG Data(Governance)

206: Anti-compretitive
Behavior (2016)

206-1

Legal actions for anti-competitive
behavior, anti-trust, and monopoly
practices207: Tax (2019)

207-1

Approach to tax

207-2

Tax governance, control, and risk
management

207-3

Stakeholder engagement andmanagement of concerns related totax

202: Market Presence(2016)

203: Indirect Economic
Impacts (2016)

GRI Standards

Disclosures

Medium of publication

GRI 101: Foundation 2016
General Disclosures

301: Materials (2016)

207-4

Country-by-country reporting

301-1

Materials used by weight or volume

Environmental Load
Generated byBusiness Activities
ESG Data(Environment)

302: Energy (2016)

301-2

Recycled input materials used

301-3

Reclaimed products and theirpackaging materials

302-1

Energy consumption within theorganization

Environmental Load
Generated byBusiness Activities
ESG Data(Environment)

302-2

Energy consumption outside of theorganization

302-3

Energy intensity

ESG Data(Environment)

302-4

Reduction of energy consumption

Realization of a Lowcarbon Society(Initiatives for Energy
Saving)Examples of Energysaving Initiatives

303: Water And
Effluents (2018)

302-5

Reductions in energy requirements
of products and services

303-1

Interactions with water as a sharedresource

303-2

Management of water dischargerelated impacts

303-3

Water withdrawal

ESG Data(Environment)
Effective Use of
Water Resources304: Biodiversity(2016)

303-4

Water discharge

ESG Data(Environment)

303-5

Water consumption

Effective Use of
Water Resources

304-1

Operational sites owned, leased,managed in, or adjacent to,protected areas and areas of highbiodiversity value outside protected
areas

GRI Standards

Disclosures

Medium of publication

GRI 101: Foundation 2016
General Disclosures

305: Emissions (2016)

304-2

Significant impacts of activities,
products, and services on
biodiversity

304-3

Habitats protected or restored

304-4

IUCN Red List species and national
conservation list species with
habitats in areas affected byoperations

305-1

Direct (Scope 1) GHG emissions

Environmental Load
Generated byBusiness Activities
Realization of a Lowcarbon Society(Initiatives to Reduce
CO2 Emissions)ESG Data(Environment)

305-2

Energy indirect (Scope 2) GHG
emissionsESG Data(Environment)

305-3

Other indirect (Scope 3) GHG
emissionsESG Data(Environment)

305-4

GHG emissions intensity

Realization of a Lowcarbon Society(Initiatives to Reduce
CO2 Emissions)ESG Data(Environment)

305-5

Reduction of GHG emissions

305-6

Emissions of ozone-depleting
substances (ODS)

305-7

Nitrogen oxides (NOx), sulfur
oxides (SOx), and other significant
air emissions

Realization of a Lowcarbon Society(Initiatives to Reduce
CO2 Emissions)

Environmental Load
Generated byBusiness Activities
ESG Data(Environment)

306: Waste (2020)

306-1

Waste generation and significant
waste-related impacts

Creating a Circular
Economy306-2

Management of significant wasterelated impacts

Creating a Circular
Economy306-3

Waste generated

Environmental Load
Generated byBusiness Activities
Creating a Circular
EconomyESG Data(Environment)

GRI Standards

Disclosures

Medium of publication

GRI 101: Foundation 2016
General Disclosures
306-4

Waste diverted from disposal

Environmental Load
Generated byBusiness Activities
ESG Data(Environment)

306-5

Waste directed to disposal

Environmental Load
Generated byBusiness Activities
ESG Data(Environment)
ESG Data(Environment)

307: Environmental
Compliance (2016)

307-1

Non-compliance with environmental
laws and regulations

308: Supplier
Environmental
Assessment (2016)308-1

New suppliers that were screenedusing environmental criteria

308-2

Negative environmental impacts inthe supply chain and actions taken

401-1

New employee hires and employee
turnoverESG Data (Social)

401-2

Benefits provided to full-time
employees that are not provided totemporary or part-time employees

Together with
Employees (Diversity)

401-3

Parental leave

Together with
Employees (Diversity)

401: Employment(2016)ESG Data (Social)
402:
Labor/Management

402-1

Minimum notice periods regarding
operational changes

403-1

Occupational health and safety

Relations (2016)
403: Occupational
Health and Safety

management system

Together with
Employees (Initiatives
for HealthManagement)

403-2

Hazard identification, risk
assessment, and incident
investigation

403-3

Occupational health services

403-4

Worker participation, consultation,and communication on occupational
health and safety

Together with
Employees (Initiatives
for HealthManagement)

403-5

Worker training on occupational
health and safety

Together with
Employees (Initiatives
for HealthManagement)

403-6

Promotion of worker healthTogether with
Employees (Initiatives
for HealthManagement)

GRI Standards

Disclosures

Medium of publication

GRI 101: Foundation 2016
General Disclosures
403-7

Prevention and mitigation ofoccupational health and safety
impacts directly linked by business
relationships

403-8

Workers covered by an
occupational health and safety
management system

403-9Work-related injuries

Together with
Employees (Initiatives
for HealthManagement)
ESG Data (Social)403-10Work-related ill health404-1

Average hours of training per year
per employee

404-2

Programs for upgrading employee
skills and transition assistanceprograms

404-3

Percentage of employees receiving
regular performance and careerdevelopment reviews

405-1

Diversity of governance bodies andemployees

405-2

Ratio of basic salary andremuneration of women to men

406: Nondiscrimination(2016)406-1

Incidents of discrimination andcorrective actions taken

407: Freedom of

407-1

Operations and suppliers in which

404: Training and
Education (2016)

405: Diversity andEqual Opportunity(2016)

Association andCollective Bargaining(2016)
408: Child Labor(2016)

the right to freedom of associationand collective bargaining may be at
risk
408-1

Operations and suppliers at
significant risk for incidents of childlabor

Human Resource
Development

Together with
Employees (Diversity)

Respect for Human
RightsCollaboration withSocial Groups/Nonaffiliate
Companies/Organization(Collaboration with
NPOs—Contribution
to cacao producing
countries)
Initiatives of
Sustainable Raw
Material Procurement
Respect for Human
RightsGRI Standards

Disclosures

Medium of publication

GRI 101: Foundation 2016
General Disclosures
409: Forced orCompulsory Labor(2016)

409-1

Operations and suppliers at
significant risk for incidents offorced or compulsory labor

Collaboration withSocial Groups/Nonaffiliate
Companies/Organization(Collaboration with
NPOs—Contribution
to cacao producing
countries)
Initiatives of
Sustainable Raw
Material Procurement
Respect for Human
Rights410: Security Practices(2016)

410-1

Security personnel trained inhuman rights policies or procedures

411: Rights ofIndigenous Peoples(2016)

411-1

Incidents of violations involving
rights of indigenous peoples

412: Human Rights
Assessment (2016)

412-1

Operations that have been subject
to human rights reviews or impact
assessments

Respect for Human
Rights412-2

Employee training on human rights
policies or procedures

Respect for Human
Rights412-3

Significant investment agreements
and contracts that include humanrights clauses or that underwent
human rights screening

413-1

Operations with local community
engagement, impact assessments,

413: Local
Communities (2016)

and development programs

Collaboration withSocial Groups/Nonaffiliate
Companies/Organization(Collaboration with
NPOs—Contribution
to cacao producing
countries)
Together withChildren

413-2

Operations with significant actualand potential negative impacts on
local communities

414-1

New suppliers that were screenedusing social criteria

414-2

Negative social impacts in the
supply chain and actions taken

415: Public Policy(2016)

415-1

Political contributions

416: Customer Healthand Safety (2016)

416-1

Assessment of the health andsafety impacts of product andservice categories

414: Suplier Social
Assessment (2016)

Together with
Customers(Commitment to
Quality)

GRI Standards

Disclosures

Medium of publication

GRI 101: Foundation 2016
General Disclosures
416-2

Incidents of non-complianceconcerning the health and safety
impacts of products and services

417-1

Requirements for product andservice information and labeling

417-2

Incidents of non-complianceconcerning product and service
information and labeling

417-3

Incidents of non-complianceconcerning marketing
communications

418: Customer Privacy(2016)

418-1

Substantiated complaints
concerning breaches of customer
privacy and losses of customer data

419: Socioeconomic
Compliance (2016)

419-1

Non-compliance with laws andregulations in the social andeconomic area

417: Marketing andLabeling (2016)

Together with
Customers(Commitment to
Quality)

Home > The Morinaga Group’s Sustainability > CSR Report

CSR Report
CSR Report

The Morinaga Group’s
Sustainability

Editorial Policy

Sustainable
Management
The Morinaga Group has issued “Morinaga CSR Report” in booklet and PDF
formats since FY2015/3 to help stakeholders better understand its attitude

Sustainable Management
Stakeholder Engagement

towards, and initiatives on, corporate social responsibility (CSR) that should

Sustainability Policies ＆

be fulfilled by the Group based on its vision and mission statement.

Guidelines

The FY2021/3 version is designed to cover a wider range of CSR information
than ever before. We are committed to promoting our CSR activities, while

Environmental

using this Report as a way to help our stakeholders better understand what

Initiatives

we do for CSR and build a deeper and more trustful relationship with them.

Environmental Management
Environmental LoadFor our latest CSR information, please visit our corporate website at:Generated by Business
Activities
Realization of a Low-Carbon
Society
Creating a Circular Economy

Scope of reporting
This report is mainly relevant to Morinaga & Co., Ltd. However, the environmental data of the ESG data section

Environmentally-friendly
Packaging Materials
Initiatives to Resolve
Environmental

shows the aggregate results of the Morinaga Group, including four factories of Morinaga & Co., Ltd and five

Pollutants

affiliated production companies, as well as the results of overseas production bases.

Initiatives for Biodiversity
Effective Use of Water• Four factories of Morinaga & Co. Ltd.: Tsurumi Factory, Oyama Factory, Mishima Factory, and Chukyo Factory• Affiliated production companies: Takasaki Morinaga Co., Ltd., Morinaga Angel Dessert Co., Ltd., Morinaga
Dessert Co., Ltd., Morinaga Snack Foods Co., Ltd., and Morinaga Kofu Foods Co., Ltd.
Overseas production bases: Taiwan Morinaga Co. Ltd., Morinaga Food (Zhejiang) Co., Ltd., and Morinaga• America Foods, Inc.

Resources
Environmental Accounting

Social Contributions
Together with Customers
Together with Children
Collaboration with Social
Groups/Non-affiliate
Companies/Organizations

Period covered by the Report
April 1, 2019 through March 31, 2020

Together with Employees

GovernanceCorporate Governance*

The Report includes certain initiatives before FY2020/3 and activities after April 2020.

*

The ESG data of the overseas production bases covers the period from January 1, 2019 to December 31, 2019.

Compliance
Risk Management
Respect for Human Rights

Month of issuanceJapanese version: September 2020 (previous issue: October 2019)

Initiatives of
Sustainable Raw
Material Procurement
Medium-term Goal for
Sustainable Raw Material

Reference guidelines• “Environmental Reporting Guidelines 2018” issued by the Ministry of the Environment• ISO 26000 (Guidance on Social Responsibility)• GRI Standards
Contact address for inquiries about the CSR Report
CSR Group, Corporate Communication Div.,
Morinaga & Co., Ltd.
Tel: +81-(0)3-3456-0143/Fax: +81-(0)3-3769-6129

Evaluation by external bodies-The Certified Health and Productivity Management Organization 2020 (White 500)
Morinaga & Co., Ltd. has been selected as the Certified Health and Productivity Management Organization
2020 in the White 500 category for three consecutive years and ranked within the top 10% of the food industry
under a program jointly administered by the Ministry of Economy, Trade and Industry (METI) and Nippon Kenko
Kaigi.

- MSCI Japan Empowering Women Index (WIN)Morinaga & Co., Ltd. has been selected as a constituent of the MSCI Japan Empowering Women Index as acompany with excellent gender diversity.

- CDP Climate Change 2019
Morinaga & Co. Ltd. has achieved a B score in the Climate Change Report issued by the CDP, an international
non-profit organization that works on the achievement of sustainable economy.

CSR Report 2020 (Download)
Download the Full Report

P1-2

Mission/Contents

P3-6

Message from the President

P7-8

Morinaga Group’s Founding Spirit and 120 Years of History

P9-10

Our Value Chain and Response to Social Issues

Procurement

GRI Standards Index
CSR Report
ESG Data

P11-12

Providing Value through Food
Providing Products that Contribute to Healthy and Happy LifestyleP13-20CSR Management

P21-26

Together with Customers

P27-28

Together with Clients/Business Partners

P29-36

Together with Employees

P37-40Together with Children

P41-48Environmental Initiatives

P49-54Governance

P55-58ESG Data

P59-60

Network of the Morinaga Group/Corporate Profile/Editing Policy

Home > The Morinaga Group’s Sustainability > ESG Data

ESG Data
Policies and performance data related to ESG (Environment-Society-Governance) in Morinaga Group business

The Morinaga Group’s

activities are organized by item in accordance with multiple ESG reporting guidelines and the perspicuity of the

Sustainability

information is enhanced.
For concrete examples of initiatives, please refer to CSR Information items.
ESG Data Book
FY2020 Third Party Independent Assureance Statement：GHG Emissions(Scope1,2) & Water Consumption

Sustainable
Management
Sustainable Management
Stakeholder Engagement
Sustainability Policies ＆Guidelines

Environmental
Initiatives
Environmental Management
Environmental Load
Generated by Business
Activities
Realization of a Low-Carbon
Society
Creating a Circular Economy
Environmentally-friendly
Packaging Materials
Initiatives to Resolve
Environmental
Pollutants
Initiatives for Biodiversity
Effective Use of Water
Resources
Environmental Accounting

Social Contributions
Together with Customers
Together with Children
Collaboration with Social
Groups/Non-affiliate
Companies/Organizations
Together with Employees

GovernanceCorporate GovernanceCompliance
Risk Management
Respect for Human Rights

Initiatives of
Sustainable Raw
Material Procurement
Medium-term Goal for
Sustainable Raw Material

Procurement

GRI Standards Index
CSR Report
ESG Data

Recommended Information

Medium-term Goal for

Morinaga Group’s Founding

Our Value Chain andProviding Products that

Sustainable Raw Material

SpiritResponse toContribute to

Procurement

and 120 Years of History

Social Issues

Healthy and Happy Lifestyle

The Company considers its key“I wish to provide delicious,

The Morinaga Group is aware

Society as a whole is becomingtasks as a food manufacturer

highly nutritious Westernof various social issues that it

increasingly health-conscious

to be delivery of safe, reliable

confectionaries to the people offaces at every stage of its

and there is a growing need to

products to customers andJapan.” Morinaga & Co., Ltd.

value chain (planning andtake proper nutrients in an

procurement of sustainable raw

was launched with this strong

development, procurement,easy and functional way. The

materials that are not harmful

desire as expressed byproduction, distribution andMorinaga Group has been

to the global environment orTaichiro Morinaga, thesales, andworking on the development ofsociety.

company’s founder.

consumption/disposal) and iswellness products that can help

promoting measures to resolve

people lead a healthy andthem.

happy life.

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