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Sustainability Management
Sustainability Policy

Sustainability Promotion System

Sustainability at
Morinaga Group

Contribution to the Achievement of the
Sustainable Development Goals (SDGs)

Sustainability

The Morinaga Group will enhance its overall sustainability management in order to achieve
its Purpose and the 2030 Vision with Altruism as the foundation, a tenet valued by theManagement
Sustainability Advisory
Board

Company's founder.

Identifying the
Machiko Miyai

Materiality

Director and Managing Executive Officer

Stakeholder

in charge of Sustainable Management Division

Engagement

Morinaga Group Sustainability Policy

Contributions to Healthy
Lives of People around
the World
Contribute to “Health ofMind, Body, andMorinaga Group Sustainability Policy

Environment”
Corporate Citizenship

The Morinaga Group's Purpose is to “continue to create healthy foods that can be enjoyedbeyond generations, thereby bringing smiles to the faces of people around the world now
and in the future.” By conducting our corporate activities to realize this Purpose, we aim tocontribute to the creation of a sustainable society and achieve sustainable growth of theMorinaga Group.

Provision of Safe andReliable Products

Diversity and Inclusionof People• We will provide value to customers and society and make efforts to solve social issues
while giving proper consideration to the global environment.

• We will engage appropriately in dialogue and build relationships of trust with all our
stakeholders.

Human Resource
Development
Fostering Organizations thatare Diverse and Dynamic
Achieving a Healthy andWorker-friendly Workplace• We will realize sound and highly-effective management through fair and transparent
governance.

Environment

Achieving Sustainable
Value Chains(Established: November 2021)

Corporate Philosophy
Code of Conduct Standards of Behavior
Sustainability Policies & Guidelines

Promotion of Sustainable
Raw Material Procurement
Promotion of CSR Supply
Chain Management
Reduction of Food Loss and
Waste
Promotion of Waste
Reduction
Co-existence and coprosperity with local
communities

Identifying the Group's Materiality
The Morinaga Group began deliberating material issues for achieving our Purpose and the 2030 Vision in July

Conserving the Global

2020, and identified material issues (Materiality) from both financial and non-financial aspects following theEnvironment

approval of the Board of Directors.

Response to Climate

We will steadily establish social values and a resilient management foundation to achieve sustainable growththrough addressing our materiality.
Process of Identifying Materiality

Change Issues
Information Disclosure
Following the TCFD
Recommendations
Promotion of Environmental
Consideration in Containers
and Packaging
Effective Use of Water
Resources
Biodiversity
Management ofEnvironmental Pollutants

Strengthening theBusiness Management
Foundation
Build a Highly Transparent
and Efficient Governance
SystemHuman Rights Management
Participation in Initiatives
Indices and Awards

Sustainability Policies& Guidelines
Integrated Report

Sustainability Promotion System

ESG Data
GRI Standards

In April 2021,we established the Sustainable Management Division to support and promote the entire Group's
sustainability and ESG initiatives. Moreover, we newly established the ESG Committee, which is chaired by the
President and Representative Director in order to promote initiatives for sustainability and achieve the Group's
overall Purpose.

Sustainable Finance
IR Library

The Sustainable Management Division serves as the secretariat for the ESG Committee, with the heads ofdepartments relevant to the 2030 Targets serving as committee members. The ESG Committee meets about once
every two months.
Moreover, we established five new subcommittees under the ESG Committee. Subcommittees are chaired by a
Director and comprised of members from relevant departments. Aimed at achieving the Long-Term Targets for2030, we will steadily implement activities for sustainability. In April 2022, we established the Sustainability
Advisory Board, which three outside experts attended in order to qualitatively improve sustainable business
management.
The Morinaga Group will further make appropriate disclosure on our activity status and progress throughintegrated reports and our company website and increase the entire Group’s transparency as well as build a trust
relationship with all stakeholders through presenting the Morinaga Group’s philosophy and activities. Also, we aim
to refine our response to requests for ESG information disclosure from external survey organizations and business
partners and achieve enhanced corporate value for the medium to long term.

Commitment to the United Nations Global Compact
Since its founding in 1899, Morinaga & Co., Ltd. has continued to uphold standards when dealing with humanrights, labor, the environment, and anti-corruption. Given that our recent efforts matched the efforts of the United
Nations Global Compact initiative towards corporate responsibility and its 10 Principles, we expressed our support
for them in April 2022 and signed the initiative.

The Ten Principles of the United Nations Global Compact<Human Rights>
Principle1 : Businesses should support and respect the protection of internationally proclaimed humanrights; andPrinciple2 : make sure that they are not complicit in human rights abuses.
<Labour>
Principle3 : Businesses should uphold the freedom of association and the effective recognition of the rightto collective bargaining;
Principle4 : the elimination of all forms of forced and compulsory labour;
Principle5 : the effective abolition of child labour; andPrinciple6 : the elimination of discrimination in respect of employment and occupation.
<Environment>
Principle7 : Businesses should support a precautionary approach to environmental challenges;
Principle8 : undertake initiatives to promote greater environmental responsibility; andPrinciple9 : encourage the development and diffusion of environmentally friendly technologies.
<Anti-Corruption>
Principle10 : Businesses should work against corruption in all its forms, including extortion and bribery.

Contribution to the Achievement of the Sustainable
Development Goals (SDGs)
In 2015, Sustainable Development Goals (SDGs) was adopted at the UN Sustainable Development Summit. The
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 throughbusiness activities to contribute to the realization of a sustainable society.

Sustainability at Morinaga Group
Identifying theMateriality

Stakeholder
Engagement

Home > Sustainability at Morinaga Group > Sustainability Management > Sustainability Advisory Board

Sustainability Advisory Board
Objective of Establishment andOperationsFirst Meeting of the Sustainability
Advisory Board

Sustainability at
Morinaga Group
Sustainability

Objective of Establishment and Operations

Management
Sustainability Advisory
Board

The Morinaga Group established the Sustainability Advisory Board (SAB) in April 2022 as an advisory body to the
ESG Committee. SAB’s mission is to accurately identify and respond to the rapidly changing external environmentand diversifying needs of stakeholders, and raise the level of sustainable business management. Three outside
experts specializing in such fields as the SDGs business, ESG investment and diversity and inclusion participate in
SAB to provide advice and recommendations on the Group’s strategies and initiatives.

Identifying theMateriality
Stakeholder
Engagement

By reflecting the advice and recommendations received from SAB in future measures and initiatives, we hope tomake steady progress with the implementation of sustainability management as well as achieve sustainable

Contributions to Healthy

growth and enhance corporate value.

Lives of People around
the World
Contribute to “Health ofFirst Meeting of the Sustainability Advisory Board
The first SAB meeting was held in May 2022. It was attended by these three outside experts along with four
representatives from Morinaga, including the President, each director in charge of the Corporate Strategy Division
and Sustainable Management Division and the Executive Officer and General Manager of the Sustainable
Management Division. Members shared their views on the Group’s initiatives for achieving our Purpose and the2030 Vision.

Mind, Body, andEnvironment”
Corporate Citizenship
Provision of Safe andReliable Products

Diversity and Inclusionof People
Human Resource
Development

The main agenda items were as follows.

Fostering Organizations thatare Diverse and Dynamic

Main Agendas Items
1. Morinaga Group Integrated Report 2021 and 2030 Business Plan
2. Disclosure of Non-Financial Infomation
3. Promotion of Diversity and Inclusion

Achieving a Healthy andWorker-friendly Workplace
Environment

Achieving Sustainable
Value Chains

1. SAB praised Morinaga Group Integrated Report 2021 for conveying information concisely to investors andPromotion of Sustainable
Raw Material Procurement

establishing shared understanding of the concept of “health of mind, body, and environment.” However, SAB

Promotion of CSR Supply

shared the view that certain improvements can be made to the 2030 Vision; for example, providing greater detail

Chain Management

regarding the initiatives to change into a wellness company.

Reduction of Food Loss andWaste

2. Regarding disclosure of non-financial information, SAB provided and discussed the latest domestic andoverseas information on disclosure trends in recent years, such as the TCFD recommendations and requests fordisclosure of human capital.

Promotion of Waste
Reduction
Co-existence and coprosperity with local
communities

3. For promotion of diversity and inclusion, SAB members provided advice and discussed relevantinternational standards and the considerations that should be made with a global perspective.

Conserving the Global
Environment

These valuable opinions will be reflected in the Group’s future sustainable business management and for the

Response to Climate

Group’s new value creation.

Change Issues
Information Disclosure
Following the TCFD
Recommendations
Promotion of Environmental
Consideration in Containers
and Packaging
Effective Use of Water
Resources
Biodiversity
Management ofEnvironmental Pollutants

Strengthening theBusiness Management
Foundation
Build a Highly Transparent
and Efficient Governance
SystemHuman Rights Management
Participation in Initiatives
Indices and Awards

Sustainability Policies& Guidelines
Integrated Report
ESG Data
GRI Standards
Sustainable Finance
IR LibraryHome > Sustainability at Morinaga Group > Identifying the Materiality

Identifying the Materiality
Process of Identifying Materiality
In order to identify our materiality, we conducted interviews with experts in the fields of sustainability, consumer
issues, capital markets and ESG investment, etc., in July 2020 to obtain opinions on issues that we should

Sustainability at
Morinaga Group
Sustainability
Management

address.

Sustainability Advisory

Following that, we summarized our 30 material issues for the realization of our Purpose and the 2030 Vision basedBoard

on vital issues in management and business, international standards and initiatives such as SDGs, and Global
Compact, expectations and requests from stakeholders such as customers, business partners, and NGOs, survey

Identifying theitems received from survey organizations on CSR, ESG, and sustainability, and other factors such as the external

Materiality

environmental trend that surrounds the Morinaga Group and the food industry.
These material issues are evaluated for their importance from the two axes of “impact on the Morinaga Group's
sustainable growth,” and “impact on the society's sustainable development” by 11 external stakeholders (three
investors, four business partners, one NGO, and three Outside Directors) and 10 key members of the Company.
As a result, 21 issues have been rated as important, while seven of which have been rated as the most important(see materiality matrix*).
Based on this result and repeated discussion among board members, given comprehensive consideration on their

Stakeholder
Engagement
Contributions to Healthy
Lives of People around
the World
Contribute to “Health ofrelation to the Morinaga Group's management and business operations, we have identified five materialities.The

Mind, Body, andmateriality and its specific themes will be reviewed on a regular basis.

Environment”
Corporate Citizenship
Provision of Safe andReliable Products

Diversity and Inclusionof People
Human Resource
Development
Fostering Organizations thatare Diverse and Dynamic
Achieving a Healthy andWorker-friendly Workplace
Environment

Achieving Sustainable
Value Chains
Promotion of Sustainable
Raw Material Procurement
Promotion of CSR Supply
Chain Management
Reduction of Food Loss and
Waste
Promotion of Waste
Reduction
Co-existence and coprosperity with local
communities

Conserving the Global
Environment

Initiatives for each material issue

Response to Climate
Change Issues

Information Disclosure
Following the TCFD
Recommendations
Promotion of Environmental
Consideration in Containers
and Packaging
Effective Use of Water
Resources
Biodiversity
Management ofEnvironmental Pollutants

Strengthening theBusiness Management
Foundation
Build a Highly Transparent
and Efficient Governance
SystemHuman Rights Management
Participation in Initiatives
Indices and Awards

Sustainability Policies& Guidelines
Integrated Report
ESG Data
GRI Standards
Sustainable Finance
IR Library

Sustainability at Morinaga GroupHome > Sustainability at Morinaga Group > Stakeholder Engagement

Stakeholder Engagement
Basic Stance
The Morinaga Group attaches great importance to the stakeholder engagement, for which opinions and requests
are received from various stakeholders through communication with them, and then reported to the management

Sustainability at
Morinaga Group
Sustainability
Management

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

Sustainability Advisory

We communicate with our stakeholders actively and regularly, striving to contribute to the achievement of aBoardsustainable society.

Identifying theMorinaga Group's Stakeholders

Materiality
Stakeholder
Engagement

We recognize six groups of stakeholders who surround the Morinaga Group, that is, customers, employees,
clients/business partners, shareholders/investors, local community, and the global environment.

Contributions to Healthy
Lives of People around

Multi-Stakeholder Policy

the World
Contribute to “Health ofMind, Body, andEnvironment”
Corporate Citizenship
Provision of Safe andReliable Products

Diversity and Inclusionof People
Human Resource
Development
Fostering Organizations thatare Diverse and Dynamic
Achieving a Healthy andWorker-friendly Workplace
Environment

Achieving Sustainable
Value Chains
Promotion of Sustainable
Raw Material Procurement
Promotion of CSR Supply
Chain Management

Customers

Reduction of Food Loss and
Waste
Promotion of Waste
Reduction
Co-existence and coprosperity with local
communities

Employees

Conserving the Global
Environment
Response to Climate
Change Issues
Information Disclosure
Following the TCFD
Recommendations
Promotion of Environmental
Consideration in Containers
and Packaging
Effective Use of Water
Resources

Business partners

Biodiversity
Management ofEnvironmental Pollutants

Strengthening theBusiness Management
Foundation
Build a Highly Transparent
and Efficient Governance
SystemHuman Rights Management
Participation in Initiatives

Shareholders/investors

Indices and Awards

Sustainability Policies& Guidelines
Integrated Report
ESG Data
GRI Standards

Local community

Sustainable Finance
IR Library

Global environment

Initiatives for each material issue

Home > Sustainability at Morinaga Group > Contributions to Healthy Lives of People around the World

Contributions to Healthy Lives of People around theWorld
The Morinaga Group is contributing to the healthy lives of people around the world with our efforts in providing
health values for mind, body, and environment.

Sustainability at
Morinaga Group
Sustainability

Materiality
Contribute to Healthy Lives of People around the World

Main challenges included in materiality
1. Develop delicious and healthy foods

Management
Sustainability Advisory
Board

Identifying theMateriality

2. Develop products with new value in response to consumer needs
3. Develop sustainable products

Stakeholder

4. Food security and quality assurance

Engagement

5. Appropriately convey social and environmental information about products

Main expected opportunities and risks

Contributions to Healthy
Lives of People around
the World<opportunities>

Contribute to “Health of・Growing business opportunities following the rising health consciousness of consumers

Mind, Body, and・Growing business opportunities and improving competitiveness by tapping into latent markets
・Growing business opportunities from rising awareness of sustainability among consumers

Environment”
Corporate Citizenship・Increasing social trust

Provision of Safe and<risks>Reliable Products

・Declining market competitiveness over the medium to long term caused by delayed response
・Declining social trust, brand value, and corporate value

Main Actions Ahead of 2030
1. Develop and supply products that contribute to “health of mind and body”

Diversity and Inclusionof People
Human Resource
Development
Fostering Organizations that

2. Develop and supply products with sustainable value

are Diverse and Dynamic

3. Supply safe and reliable foods

Achieving a Healthy andWorker-friendly Workplace

Response to SDGs

Environment

Achieving Sustainable
Value Chains
Promotion of Sustainable
Raw Material Procurement
Promotion of CSR Supply
Chain Management
Reduction of Food Loss and
Waste
Promotion of Waste
Reduction

Basic Stance
The Group's quest for health begins with the founder Taichiro Morinaga's idea to bring delicious and highly

nutritious Western confections to Japan and the statement of “rich in nourishment /exquisite flavor,” as written on
the package of Milk Caramel. Since then, for over 120 years, we have been striving in our basic research, foodprocessing technology, product developing capability, production technology, product promotion capability, andinformation provision capability, in order to consistently provide customers with values over the age. Even today,

Co-existence and coprosperity with local
communities

Conserving the Global
Environment
Response to Climate
Change Issues

we are striving to provide values through a wide range of product categories to bring “health of mind

Information Disclosure(deliciousness and fun)” and “health of body (nutrition supplement)” to customers of all generations and lifestyles

Following the TCFD

in order to contribute to a healthy life by harnessing these capabilities as our strength. Particularly, lifestyles have

Recommendations

been diversifying in recent years, with the needs for nutritional supplements diversifying, such as “to also satisfy

Promotion of Environmental

a craving,” “in dessert form,” and “in drinks form.” The Morinaga Group will meet customers' needs with various

Consideration in Containers

categories and forms of products. For the future, we will focus on the development of products that dive deeper

and Packaging

into “health of mind” and sustainable products, in aiming to realise sustainable growth and enhanced corporate

Effective Use of Water

value for the Group by achieving the goal of “health of mind, body, and environment” as stated in the 2030
Vision.
Values Provided to Customers

Resources
Biodiversity
Management ofEnvironmental Pollutants

Strengthening theBusiness Management
Foundation
Build a Highly Transparent
and Efficient Governance
SystemHuman Rights Management
Participation in Initiatives
Indices and Awards

Sustainability Policies& Guidelines
Integrated Report
ESG Data
GRI Standards
Sustainable Finance
IR LibraryHome > Sustainability at Morinaga Group > Contributions to Healthy Lives of People around the World > Contribute to “Health of Mind, Body, and Environment”

Contribute to “Health of Mind, Body, andEnvironment”
Develop products that contribute to“health of mind, body, and environment”

Information Provision to Consumers

Initiatives for Resolving Social Issues

Co-creative Action with Consumers

Corporate Citizenship

Sustainability at
Morinaga Group
Sustainability
Management
Sustainability Advisory
Board

Develop products that contribute to “health of mind, body,and environment”

Identifying theMateriality
Stakeholder

Delicious, easy, and quick protein supply
The demand for products that can easily replenish proteins is growing due to interest in body building and habits oftraining resulting from a rising health awareness, and as prevention for sarcopenia and frailness in the elderly. The
Morinaga Group is expanding its lineup of protein supply products among the “in-” brand, including “in Jelly.”

Engagement
Contributions to Healthy
Lives of People around
the World
Contribute to “Health of

Recently, we have been working on enhancing added value such as by introducing E lutein, which strengthens theMind, Body, andfunction of proteins.

Environment”
Corporate Citizenship
Provision of Safe andReliable Products

Diversity and Inclusionof People
Human Resource
Developmentin jelly・in bar

Fostering Organizations thatare Diverse and Dynamic
Achieving a Healthy and

Deliciously and easily replenish water and salt
There is an increasing occurrence of heat strokes due to the rising average temperature along with global
warming. The Morinaga Group agrees with the Heat Illness Prevention - Communication Project, and isWorker-friendly Workplace
Environment

Achieving Sustainable
Value Chains

responding to the needs for replenishing water and salt through our products of in Jelly <Energy Lemon>, in

Promotion of Sustainable

Tablet, Morinaga Amazake, and Ice Box.

Raw Material Procurement
Promotion of CSR Supply
Chain Management
Reduction of Food Loss and
Waste
Promotion of Waste
Reduction

Health Illness Prevention-Communication ProjectDeep dive into “health of mind” and evolve into “health of body”
The COVID-19 pandemic has brought about drastic changes to people-to-people communication and stresslevels. Given that the demand for healthy minds is stronger than ever before, we are striving to deeply explore“health of mind” in terms of scientific approach and consumer-oriented marketing. At the same time, we are alsoenhancing our technology to reduce sugar, fat, and calories to meet the growing needs for “health of body” inconfectionery and foodstuffs.
We have developed products based on the changing needs of our customers by researching compounding andprocessing technologies that balance taste with nutritional ingredients and reduction of carbs and calories.
In particular, we created delicious products such as Morinaga Collagen Drink and in Bar Protein which hide theCo-existence and coprosperity with local
communities

Conserving the Global
Environment
Response to Climate
Change Issues
Information Disclosure
Following the TCFD
Recommendations

unique taste of certain nutrients.

Promotion of Environmental

Many confectionery and frozen desserts products are rich in sugar and carbohydrates, but we are also developing

Consideration in Containers

sugar-free and carbohydrate-free products such as "in Jelly" and "HI-CHEW" in addition to calorie-free products inand Packaging

order to appeal to a wider audience.

Effective Use of Water
Resources
Biodiversity

Information Provision to Consumers
Information dissemination based on sports science

Management ofEnvironmental Pollutants

Strengthening theBusiness Management
Foundation

The Morinaga Group operates a training lab that supports the body building and nutrition counseling for top

Build a Highly Transparent

athletes. We provide articles put together by trainers and dieticians of the Training Lab on our website, “Easy-to-and Efficient Governanceunderstand textbook on protein.” The website gets an average of 1.5 million visits per month with a multitude of
information from protein selection by Purpose of use, to food menu, and workout advice.

SystemHuman Rights Management
Participation in Initiatives
Indices and Awards

Sustainability Policies& Guidelines
Integrated Report
ESG Data
GRI Standards

Initiatives for Resolving Social Issues
Supporting education and preventing child labor in cacaoproducing countries (One Chocolate for One Smile)
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.

Sustainable Finance
IR LibraryChildren in Ghana enjoying school meals provided by the
support program

Plan International
ACE (Action against Child Exploitation)

Co-creative Action with Consumers
Project to Connect Smiles to the Future
In 2021, young and mid-career members of the sales division came together to launch the “Project to Connect
Smiles to the Future,” as a co-creative action with consumers towards a sustainable society. First, the campaign ofdonating the equivalent amount of Chocoball to children's cafeterias throughout Japan based on the number of
Chocoball purchased and applied for was launched. The campaign was promoted in stores of businesses
endorsing the project, where we received 21,816 applications and truly felt the increasing public interest.

We have also launched a website where people can have fun learning about sustainability with "Kyoro-chan",Morinaga's popular bird-like mascot.
By explaining the SDGs and Morinaga Group's efforts in simple terms, we aim to encourage many customers
to empathize with and participate in the creation of a sustainable society.

Corporate Citizenship
We also engage in corporate citizenship activities such as education for the younger generation.
Corporate Citizenship

Contributions to Healthy Lives of People around the World

Home > Sustainability at Morinaga Group > Contributions to Healthy Lives of People around the World > Corporate Citizenship

Corporate Citizenship
Basic Stance

Sustainability at

Food Education and Cofectionery
Education

Morinaga Group

Factory Tour

Visiting Lecture—A Caramel Lesson by
Morinaga

Sustainability

Morinaga Virtual Company Visit

Disaster recovery aid

Other

Joint Programs with Non-affiliatedCompanies through the Angel Smile
Project

Management
Sustainability Advisory
Board

Identifying theMateriality
Stakeholder
Engagement

Basic StanceContributions to Healthy
Lives of People around

The Morinaga Group's purpose is to "continue to create healthy foods that can be enjoyed beyond generations,

the World

thereby bringing smiles to the faces of people around the world now and in the future".

Contribute to “Health of

Based on this purpose, we will formulate a social contribution policy, work on solving social issues, and contributeMind, Body, andto the realization of a sustainable society.

Environment”
Corporate Citizenship
Provision of Safe andMorinaga Group Corporate Citizenship Policy
The Morinaga Group will carry out social contribution activities based on the altruistic spirit

Reliable Products

Diversity and Inclusionof Peopleof thinking about how to be considerate and contribute towards others.

Human Resource

Through cooperation and collaboration with local communities, government agencies,

Development

NPOs, and NGOs, we will work as a member of society to contribute to the creation of a

Fostering Organizations thatsociety that brings smiles to people's faces.

are Diverse and Dynamic
Achieving a Healthy and• Main Activities

Worker-friendly Workplace
Environment

Nurturing next generation, Emvironmental Conservation,
Disaster Recovery Assistance, and Local Volunteering, etc.

Achieving Sustainable
Value Chains
Promotion of Sustainable
Raw Material Procurement

Food Education and Cofectionery Education

Promotion of CSR Supply
Chain Management
Reduction of Food Loss and
Waste

Morinaga believes that the value of confectioneries lies in supplementing nutrition and its role in communicationthat connects people to people and hearts to hearts.
Morinaga donates “Mel and Mar's Picnic,” our original picture book for confectionery education, to children's
nursery facilities. This is aimed at helping children develop creativity while learning about, in a fun way,
confectionery's roles and how to properly associate with confectionery. The nursery facilities use the book for such
purposes as storytelling and drama-based workshop.

Promotion of Waste
Reduction
Co-existence and coprosperity with local
communities

Conserving the Global
Environment
Response to Climate
Change Issues
Information Disclosure
Following the TCFD
Recommendations
Promotion of Environmental
Consideration in Containers
and Packaging
Effective Use of Water

Morinaga Angel Museum MORIUM & Tsurumi Factory
Tour

Resources
Biodiversity
Management ofEnvironmental Pollutants

We conduct guided tours for visitors to see both the Morinaga Angel Museum MORIUM and the Tsurumi factoryStrengthening the

production line. At MORIUM, we introduce visitors to the history and technology of Morinaga & Co., Ltd. andBusiness Management

provide insight into the thought process behind our products through displays and videos. During the factory tour,
we hope visitors will be able to feel the excitement and thrill of manufacturing, and get a real sense of our efforts
towards food safety and reliability through their own eyes.

Foundation
Build a Highly Transparent
and Efficient Governance
SystemHuman Rights Management
Participation in Initiatives

What's MORIUM?

Indices and Awards

Morium is a word coined by combining Morinaga and arium (Latin word for a place associated withsomething specific) and the name represents our wish to have people come and experience the diverse
types of value that Morinaga creates (umu in Japanese).

Sustainability Policies& Guidelines
Integrated Report
ESG Data
GRI Standards
Sustainable Finance
IR Library

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.
We have also been conducting online lessons since FY2022/3, contributing to the creation of equal educational
opportunities.
Pupils watch the video of production process and take part in quiz and workshop to participate experience-basedclass.

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 of our
products. I would like to expand this activity to many employees.

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

Morinaga Virtual Company Visit
We host virtual company visits to serve as career education and as class lessons for junior high and high school
students.
Employees explain the range of Morinaga's business and about duties and workstyles, and communicate directlywith students through question. The aim is to provide an opportunity for students to think about occupation andtheir future careers, and develop an idea of what working is all about.

Disaster recovery aid
Humanitarian aid to Ukraine
In May 2022, we donated 10 million yen to Plan International Japan, a public interest incorporated foundation, toprovide humanitarian aid to Ukrainian children and their parents who were fleeing their country due to theescalation of war in Ukraine.
In addition, 307 directors and employees made humanitarian aid donations, which were matched by the Company
with an additional donation of the same amount.
These donations were used to improve the environment, provide psychosocial care, and support education forevacuated Ukrainian children and their parents.

Humanitarian aid for Turkey/ Syria Earthquake
In May 2023, we donated 10 million yen to the Japanese Red Cross Society jointly with Morinaga Milk Industry
Co., Ltd. to be used for relief efforts and reconstruction of the areas affected by the Turkey and Syria earthquakes.
We also made a donation to the Japanese Red Cross Society through a matching donation initiative, in which 281
directors and employees of the Morinaga & Co., Ltd. and its Group made a donation and the Company matched
the amount of money.

Other
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.

Education Programs to Support Future Athletes
Naoki Idegawa is a professional downhill mountain bike rider who Morinaga Training Lab has been supporting formany years, and upon his request, we started providing training and nutrition support at the Bicycle Academy. The
Bicycle Academy is a bicycle school launched in FY 2021/3 by Idegawa, who serves as the main coach, with theobjective of contributing to character building in addition to fostering bicycle knowledge and skills. Its philosophy is
to share the three joys of happiness, growth, and success through mountain biking; pursue activities with love,sincerity, and thankfulness; and contribute to the development of the bicycle community. The Lab's trainers andnutritionists provide support to member elementary school students bike riders and their parents and guardians byoffering training programs important for athletes in their growth phase, and by uploading sports-related foodeducation videos once a month. And in July, in Jelly <Energy Lemon> was provided to members after their lesson,and they learned about the importance of heat stroke prevention and of supplemental food.

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.

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 othernatural disasters, including the Great East Japan Earthquake. The number of the book's copies deliveredamounted 8,556. In addition, we plan and offer a variety of lectures for internal use. In 2022, we held one
lecture entitled"Reconsidering Corporate Activities from the Perspective of the SDGs," which was attended by employees froma wide range of divisions, including sales and raw material procurement divisions, to deepen theirunderstanding of how the SDGs have become more deeply involved in business operations.

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.

Co-existence and co-prosperity with local communities

Donation of products to the Children's Food Support Box
initiative and participation in volunteer packing work
using volunteer leave
In 2022, we endorsed the Children's Food Support Box implemented by Save the Children Japan and donatedproducts such as Moonlight, Big Choco Balls, and other items. This initiative was implemented during the summer
and winter holidays with the aim of improving the food situation for children, targeting families in financial difficultyamid the prolonged COVID-19 infection and rising prices. Save the Children Japan delivered support boxes toapproximately 8,200 households in FY2022.
In July and December, a total of 13 employees from our company took volunteer leave for three days to participate
in the Children's Food Support Box packing program.
The Morinaga Group will continue to encourage participation from our employees to solve social issues inaccordance with its social contribution policy, aiming to create a society where people can smile.

Home > Sustainability at Morinaga Group > Contributions to Healthy Lives of People around the World > Provision of Safe and Reliable Products

Provision of Safe and Reliable Products
Commitment to Quality

Framework for Quality Assurance

Efforts in Quality Assurance

Quality Assurance Initiatives Overseas

Initiatives by Cooperating Companies

Communication with Customers

Sustainability at
Morinaga Group
Sustainability
Management
Sustainability Advisory
Board

Commitment to Quality

Identifying theMateriality

The Morinaga Group believes it is its mission as a food manufacturer to constantly ensure the quality and safety of

Stakeholder

products and deliver safe and reliable products to customers.

Engagement
Contributions to Healthy
Lives of People aroundOur Philosophy on Quality Assurance
In realizing our Purpose and 2030 Vision, we believe that trust from our customers is the most important. We haveestablished the following quality policy in promoting quality assurance by placing the utmost priority on excellent
product quality together with safety and reliability, which are the premise for earning customer trust.

the World
Contribute to “Health ofMind, Body, andEnvironment”
Corporate Citizenship
Provision of Safe andQuality Policy

Reliable Products

Diversity and Inclusion

Quality Assurance System
In order to practically implement the quality policy, we have established the Quality Assurance Rules, and are
centrally and systematically managing and maintaining the “Quality Assurance Objective (purpose),” “Target

of People
Human Resource
Development
Fostering Organizations thatare Diverse and Dynamic

Level,” “Manuals Related to Quality Assurance,” and “Quality Standards.” We conduct activities on assuring quality

Achieving a Healthy andin each department.

Worker-friendly Workplace

All products of the Morinaga brand are developed involving multiple departments and divisions. We implement a

Environment

cross-sectional “Quality Assessment System” from the product planning phase to eliminate any omissions oroversight in ensuring quality, safety, and legal compliance. In addition, we conduct constant analysis in pursuit ofexcellent quality. The Analysis Group within the Quality Assurance Division conducts scientific verification andassurance on products and raw materials. Morinaga Institute of Biological Science, Inc. contributes to theverification and assurance of the safety and legal compliance of Morinaga Group's products as well as and legal
comploance of products which are produced by the company of Morinaga Group and other company, by

Achieving Sustainable
Value Chains
Promotion of Sustainable
Raw Material Procurement
Promotion of CSR Supply
Chain Management

developing, manufacturing, and selling food allergy analysis kits. And in preparation of possible quality accidents,

Reduction of Food Loss andwe have developed a Crisis Management Response Guidelines that outlines how directors and employees should

Waste

handle matters in such cases.

Promotion of Waste
Reduction
Co-existence and coprosperity with local
communities

Quality Assurance System

Conserving the Global
Environment
Response to Climate
Change Issues
Information Disclosure
Following the TCFD
Recommendations
Promotion of Environmental
Consideration in Containers
and Packaging
Effective Use of Water
Resources
Biodiversity
Management ofEnvironmental Pollutants

Strengthening theBusiness Management
Foundation
Build a Highly Transparent

Framework for Quality Assuranceand Efficient Governance
SystemHuman Rights Management
Participation in Initiatives

In an effort to deliver safe products to our customers, we have established a safety-focused quality assurance

Indices and Awards

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 variety

Sustainability Policies& Guidelinesof 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

Integrated Report

unexpected event occurs to our products, we would be committed to disclosing information accurately andpromptly in order to restore our customers' trust.
Steps We Take Before Our Products Reach Our Customers

ESG Data
GRI Standards
Sustainable Finance
IR Library1. Product development stage
While designing the quality and packages/containers and making proper labels, we comply with food-related laws
and 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 13 categories andapproximately 184 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 stage
We have prescribed strict regulations for the raw materials used in our products, and only purchase ingredientsfrom manufacturers who can meet these requirements. We check information on the safety and reliability of raw
materials with regard to not only compliance with the Food Sanitation Act but also food additives,allergenic
substances and genetically modified organisms (GMOs). We also conduct testing when it is determined to benecessary, confirming that raw materials are safe.

3. Production stage
All of our domestic production factories (four Morinaga factories and four affiliated production companies) haveobtained the FSSC 22000 certification, an international standard certification for food safety systems or JFS-B
standard certification, a Japanse Food Safety Standard.
Food Defense

List of Factories with Certifications (As of August 31, 2023)
FSSC 22000 certification:
Mishima Factory, Oyama Factory, Chukyo Factory, Tsurumi Factory, Takasaki Morinaga Co., Ltd.,
Morinaga Angel Dessert Co., Ltd., Morinaga Dessert Co., Ltd.
JFS-B standard certification:
Osaka Center of Aunt Stella Inc.

4. Shipping development stage
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.

Shipping inspection (measuring that dimensions and weight meet product standards)

5. Transportation/Storage/In-store Management
We set rules and request our business partners in the value chain (such as warehouses and transportationcompanies) to follow them so as not to impair the quality of our products in order to deliver safe products to ourcustomers.

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

Efforts in Quality Assurance
Analysis
The Morinaga Group is constantly engaged in the analysis and the development of analytical techniques for,nutritional and functional ingredients, chemical substances, heavy metals,microorganisms, and foodallergens.Based on scientific and objective evidences, we verify the safety and regulatory compliance of, andprovide warranty to, the product development,raw materials, production, logistics, and defective products reported
by customers.

Measurement of food allergens (specified raw materials)

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.

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
information important for customers when selecting products. We devise ways to ensure that health-related
information such as allergy information, nutritional information, and best-before dates are clearly visible and easy
to understand. We also work to raise customer convenience through such efforts as labeling individual packaging
with allergen information and cross-contamination statements (a warning for possible contamination arising fromproduction at shared facilities).
And when there are changes in allergen information, it is printed on the package front. Such we are taking steps toaccurately communicate information to our customers.

Product label on the package of MARIE BiscuitAllergen information printed on package front when changes are madeResponse 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 corn 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.

Education for the Product Development Department
We conduct training on quality assurance, including product design and labeling, for newly assigned productdevelopment staff. In addition to training new staff, we also work to promote understanding of safe and reliable
product design through regular training sessions and lectures by our Quality Assurance Division, Legal Affairs
Department, and General Affairs Division through the provision of information on product safety and laws once amonth.

Membership into External Organizations such as Associations
We join and participate in various academic societies such as the Japanese Society for Food Hygiene and Safety,
various fair trade councils, and various food hygiene related associations including the Japan Food Hygiene
Association. Through such activities, we gather the latest information on food quality assurance such as foodhygiene and standards and use this knowledge to strengthen our quality assurance system.

Quality Assurance Initiatives Overseas
Our overseas production sites (Taiwan Morinaga Co., Ltd., Morinaga [Zhejiang] Co., Ltd. and Morinaga America
Foods, Inc.) abide by the Morinaga Group Quality Policy, and based on local situation, have acquired international
food safety management system certifications FSSC 22000 (in Taiwan and Zhejiang) and SQF Codes Edition 9*(in the United States), ensuring they manufacture safe products.
* SQF is an acronym for Safe Quality Food. It is an international certification standard for both food safety control systems based on
HACCP and quality control systems in order to ensure product safety and quality.

Initiatives by Cooperating Companies
In addition to its own production factories, the Morinaga Group has many manufacturing partners in Japan
contracted to carry out its production.
When contracting manufacturing partners for production, we confirm in advance that those partners have in place
a quality control system that is comparable to that of the Morinaga Group's production factories. Confirmation ismade through GMF Inspection,* whose checklist consists of 150 or more items.
Once contracted, GMF Inspections are conducted regularly and the manufacturing partners are requested tomaintain and enhance their quality control systems. To facilitate the efforts of manufacturing partners, theMorinaga Group shares information with them and provides support (information exchange forums, quality
improvement support, etc.).
* GMF (Good Manufacturing Factory): Morinaga's quality inspection system in which inspectors visit factories in person to verify thatallergen control, avoidance of contamination by foreign substances, microorganism control, etc. are being conducted properly.

Communication with Customers
Framework for customer satisfaction
Led by the Customer Service Center, Production Headquarters, and Quality Assurance Division, a meeting of the
Customer Relations Committee is held quarterly to share customers' voices among all relevant divisions. We takecustomers' voices seriously and use them to help improve customer satisfaction. Meeting results from theCommittee are reported at the Board of Directors meetings by a representative officer in charge. In addition, we
agree with consumer-oriented management recommended by the Consumer Affairs Agency and have made a
voluntary declaration on consumer-orientation.

Initiatives by the Customer Service Center
Our Customer Service Center constantly implements improvements aimed at achieving a higher level of customer
satisfaction in accordance with ISO 10002, with which the Company made a self-declaration of conformity in 2013.
We receive and respond to opinions and requests from customers via a number of channels, including a toll-freenumber, e-mail, and letters, and are mindful of providing sincere, prompt, and accurate responses. All of thecustomers' voices we received are shared with the entire company through daily and monthly reports, whichenables us to detect issues at their early stages, and incorporate these voices in product and service
improvement. Moreover, we have published Q&A on our website to help our customers find solutions speedily.

Results of Customer Satisfaction Survey
The Customer Service Center analyzes every piece of every suggestion, investigates the cause, and reports theresult to the customer who gave the suggestions. With the report, we enclose a postcard that requests therecipient to respond to a survey, and the results of which are regularly analyzed and examined for details on
overall satisfaction and repurchase intentions. We will apply the results of the survey to improve our services andcontinue to strive to increase customer satisfaction by being even more considerate of our customers.

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.

Expansion of 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.

In-house Education on Advertising and Marketing, andOther Initiatives
We provide training on compliance and labeling related to advertising and marketing for newly assigned productdevelopment staff with the aim of offering advertising and marketing in a manner that is responsible to society. In
addition, when launching products, we have a mechanism in place for multiple departments to check forinappropriate expressions such as compliance violations so that all related parties can work together to deliversafe and reliable products to our customers.

Home > Sustainability at Morinaga Group > Diversity and Inclusion of People

Diversity and Inclusion of People
The Morinaga Group aims to increase its competitiveness and achieve sustainable growth through creating a work
environment that enables diverse personnel to shine and cultivates autonomous human resources who cancontinuously generate value for society.

Sustainability at
Morinaga Group
Sustainability
Management

Materiality
Diversity and Inclusion of People

Main challenges included in materiality

Sustainability Advisory
Board

Identifying theMateriality

1. Foster human resources to achieve our vision
2. Diversity and inclusion

Stakeholder
Engagement

Main expected opportunities and risks<opportunities>
・Securing of talent needed to contribute to realization of our Purpose and the 2030 Vision

Contributions to Healthy
Lives of People around
the World・Improving innovation capabilities and environmental response capabilities

Contribute to “Health of<risks>

Mind, Body, and・Declining sustainable growth capabilities due to delayed response

Environment”

・Declining organizational competitiveness and social reputation due to delayed response

Corporate Citizenship
Provision of Safe andMain Actions Ahead of 2030
1. Foster people, culture and organizations to achieve our Purpose and the 2030 Vision
2. Foster organizations that are diverse and dynamic
3. Build workplaces that are healthy and comfortable, and drive motivation

Response to SDGs

Reliable Products

Diversity and Inclusionof People
Human Resource
Development
Fostering Organizations thatare Diverse and Dynamic
Achieving a Healthy andWorker-friendly Workplace
Environment

Achieving Sustainable
Value Chains

Basic Stance

Promotion of Sustainable
Raw Material Procurement
Promotion of CSR Supply
Chain Management

The Group has positioned diversity at the center of its management, and is developing a workplace that fosters theactive participation of diverse human resources and the satisfaction of taking part in a meaningful job based on thephilosophy of “Leveraging each person's individuality.”

Reduction of Food Loss and
Waste
Promotion of Waste
Reduction
Co-existence and coprosperity with local
communities

Conserving the Global
Environment

Response to Climate

Change Issues

Long-term targets for Diversity and Inclusion of People

Information Disclosure
Following the TCFD
Recommendations
Promotion of Environmental

Goal for 2030

Consideration in Containers
and Packaging
Effective Use of Water

Rate of positive responses on the employee awareness survey: 80%

Resources
Biodiversity
Management of

more affluent and sustainable through its businesses.

Environmental Pollutants• The active participation of diverse human resources leads to the Company’s growth andStrengthening thepersistence.

Business Management
Foundation• Employees find their job meaningful and they are in good mental and physical health at

Build a Highly Transparent

work.

and Efficient Governance
SystemHuman Rights Management
Participation in Initiatives
Indices and Awards

Progress of Goal for 2030

Sustainability Policies& Guidelines

Targets

FY2031/3 Targets

Results for FY2022/3

Integrated Report
The Morinaga Group is contributing
to enriching people’s lives andcreating a society that is more

80%

89.7%

affluent and sustainable through its
businesses

GRI Standards
Sustainable Finance

The active participation of diverse
human resources leads to theCompany’s growth and persistence

80%

70.1%

Employees find their job meaningful
and they are in good mental andphysical health at work

80%

74.6%

*Scope: Permanent employees of Morinaga & Co., Ltd. (non-consolidated) excluding forwarded employees

We are working on themes listed in the table on the right based on our human resources strategy in order toachieve the targets above.

Initiative Themes to Achieve Long-Term Targets for 2030
1. Foster people, culture, and organizations to achieve our Purpose and the 2030 Vision
2. Foster organizations that are diverse and dynamic
3. Build healthy and comfortable workplaces and help employees to find their work
meaningful

ESG Data

IR LibraryHome > Sustainability at Morinaga Group > Diversity and Inclusion of People > Human Resource Development

Human Resource Development
Human Resources Development that
Leads to the Achievement of the Purposeand 2030 Vision

OJT・Off-JT・Other

Communication with Employees

Initiatives to Facilitate Innovation

Sustainability at
Morinaga Group
Sustainability
Management
Sustainability Advisory

Human Resources Development that Leads to the
Achievement of the Purpose and 2030 Vision
We believe that human resources and organization development are the most crucial aspects in achieving our
Purpose and 2030 Vision. We are conducting ongoing activities to permeate the Purpose and 2030 Vision among
all directors and employees in order to promote deep understanding and share the Purpose and 2030 Vision.
In our basic policy for human resource development, we state, "we will promote human resource development with

Board

Identifying theMateriality
Stakeholder
Engagement
Contributions to Healthy
Lives of People aroundthe integration of 'human resource development as the company's will' and 'individual self-sustaining career andthe World

automonous growth' based on the premise of linking with the management strategy.

Contribute to “Health of

Our ideal employee profile for creating values through business is as follows. We have defined “problem

Mind, Body, andidentification,” “planning and development,” “embracing challenges,” “execution,” “nurturing and self-development,”
and “organization” as six essential skills and conducting human resources development through strengthening thetraining program that will instill these skills. In addition, we have also established a training system linked to thethree main topics in human resources strategy: leader training, expertise enhancement, and productivity

Environment”
Corporate Citizenship
Provision of Safe andReliable Products

enhancement, which are implemented as a combination with training by job class and selfdevelopment.

Diversity and Inclusionof People
Human Resource
Development
Fostering Organizations thatare Diverse and Dynamic
Achieving a Healthy andWorker-friendly Workplace
Environment

Achieving Sustainable
Value Chains
Promotion of Sustainable
Raw Material Procurement
Promotion of CSR Supply
Chain Management
Reduction of Food Loss and
Waste
Promotion of Waste
Reduction
Co-existence and coprosperity with local
communities

Training System (Morinaga & Co., Ltd. (non-consolidated) in FY2022/3)
Categories of training

1
Leader training

Specific examples (abstract)
Management skills and nurturing skills enhancement training
Next-generation leaders training
Marketing Headquarters: Advanced marketer training

Conserving the Global
Environment
Response to Climate
Change Issues
Information Disclosure
Following the TCFD
Recommendations
Promotion of Environmental

2
Expertise enhancement

Production Headquarters: Production technology training

Consideration in Containers

Sales Headquarters: SP* training

Effective Use of Water

and Packaging
Resources

Overseas Business Headquarters: Language skills enhancement

Biodiversity

programManagement ofEnvironmental Pollutants

3
Productivity enhancement

Problem-solving skills enhancement training
Business foundation skill training* An acronym for Sales Promotion

Strengthening theBusiness Management
Foundation
Build a Highly Transparent
and Efficient Governance
SystemTraining PDCA Cycle
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.

Human Rights Management
Participation in Initiatives
Indices and Awards

Sustainability Policies& Guidelines
Integrated Report
ESG Data
GRI Standards
Sustainable Finance
IR Library

OJT・Off-JT・Other
Training through Off-JT
Basic employee education to develop “autonomous personnel” in 3 years
Morinaga has been particularly focused on the education and training of young employees and provide them witha basic training program that spans three years after joining the company. Included in the program are the OJTTrainer System for new employees, annual group training in the form of an Off-JT, and career interviews by the
Human Resources Division. The Human Resources Division provides diversified support to younger personnel insuch areas as skill, mind, and career. The three year program is designed to help participants develop.

Rank-based training
We continue to provide training to employees who have completed the three-year basic training program to help
them further improve their skills, mindset, and behavior, according to the organizational roles they are expected to
play.

Theme-based training
Our theme-based training programs, which are focused on management and business challenges, include thefollowing: next-generation leader training, managementgame training, and educational training to improvespecialized knowledge and skills required to perform duties specific to each division.

Human Resource Development through OJTAt their assigned workplace, new employees learn how to accomplish their duties by running the experiential
learning cycle for a period of one year, under the guidance of the OJT trainer in charge of them. An increasing
number of facilities and employees have adopted the Human Resource Development Program in sequence, and,in conjunction with the use of personnel appraisal system, each workplace is actively implementing OJT programs
to ensuring that employees can grow and develop their skills through the programs.

Self-development Training
We provide a wide range of programs that motivate employees to learn more, according to individual employees'
training themes. These free-choice programs include distance learning, e-learning, Company-sponsored themebased training, and external seminars whose fees are partly paid by the Company. Participants in the distanceand/or e-learning programs can freely select their own courses from approximately 200 options. We haveestablished financial assistance programs under which employees can receive an amount roughly equivalent tohalf of tuition fees, or monetary incentives if they attend a course as a group. A number of affiliate companies haveadopted similar assistance programs to support their employees' learning.
ESG Data: Length and cost of training per employee

Communication with Employees
Conducting regular interviews
In an effort to listen to our employee’s opinion, we hold various interview sessions between supervisors and theirsubordinates every quarter. These opportunities include quarterly accomplishment review, the Human Resource
Development Program, and career design interviews. In this process, we make efforts to enhance employees'
skills and performance by providing guidance and support for problem solving and growth while also emphasizing
the process of reaching goals as well as evaluations based on MBO. We have established a system whereby
employees who are subject to 360 degree evaluation are given feedback each time the evaluation is conducted,
and are able to reflect on their own management style by receiving advice from their superiors.
In addition, the Human Resources Division holds an individual interview with participants in the rank-based training
programs, ensuring that the Division can directly listen to employees and share their opinions.

Labor union
The All Morinaga Labor Union, which consists of nine labor unions—six from Morinaga Group member companies
and three from Morinaga Milk Industry Group member companies—operates under a union shop system. All
regular employees, except for managerial or executive positions, are members of the Union. The Union discusses
various measures and is working on such issues as the improvement of workplace environment.

Initiative to make a better organization with good culture
We have continuously and regularly conducted employee awareness survey for more than 40 years. The survey isdesigned to identify issues to be resolved about corporate culture and various measures. The survey questions
include those concerning the level of satisfaction with work, company, workplace, and supervisors, as well as otherunique questions aligned with the times or circumstances, such as those asking the respondents' degree ofunderstanding of the Medium-term Management Plan and their awareness of regulatory revisions. The results areshared with the management and each division's top executives, allowing them to use the results as important data
for formulating management strategies and solving issues in respective organizations.
Morinaga is characterized by high employee satisfaction with the top management's communication regarding
corporate vision and employees' great pride in their work and the Company.

Initiatives to Facilitate Innovation
Every year, Morinaga carries out initiatives to employ the diversity of ideas produced by individual employees andgenerate innovation.

President's Awards for Inventions and the Spirit of Challenge andActionUnder this system, the President personally screens and honors employees (teams) who have brought
tremendous tangible benefits to the company through inventions, discoveries, or ideas, or who have demonstrated
the spirit of challenge and action in achieving goals that would be impossible to achieve through ordinary efforts orideas.

Initiatives through new business divisions
New Business Development Division, which is engaged in efforts to create new business models, has recruitedmembers through an internal open recruitment system.
The Division is also creating a culture of pioneering spirit,by providing training sessions for employees who wish to
be involved in the creation of new businesses and by organizing lectures to learn about changes in the external
environment and gain a heightened or broad perspective.

Home > Sustainability at Morinaga Group > Diversity and Inclusion of People > Fostering Organizations that are Diverse and Dynamic

Fostering Organizations that are Diverse andDynamic
Diversity and Inclusion

Systems and initiatives to support
diversity and inclusion

Sustainability at
Morinaga Group
Sustainability

Diversity and Inclusion

Management
Sustainability Advisory
Board

Our diversity promotion efforts began in FY2002/3, when the Company started its initiative to promote women's

Identifying theempowerment with the goal of creating an organization where women can demonstrate their abilities and playMateriality

active roles.)
Later, in FY2013/3, Morinaga appointed the Diversity Promotion Team, and In April 2020, established the Diversity
Promotion Office under the direct supervision of the President.
Based on the philosophy set out in the Morinaga Group Diversity and Inclusion Policy, we will promote the creationof inclusive workplaces that enable diverse human resources with various differences, not only in terms of gender,

Stakeholder
Engagement
Contributions to Healthy
Lives of People aroundage, ethnicity, nationality, and presence or absence of disabilities, but also in values on work and life, individual

the World

character, and previous work experiences to give their strengths full play.

Contribute to “Health ofMind, Body, andEnvironment”

Morinaga Group Diversity and Inclusion Policy

Corporate Citizenship
Provision of Safe and“Leverage each person's individuality”
To deliver happiness to ever more people, the Morinaga Group aims to be a sustainable
company that keeps growing. Our employees are the driving force toward achieving that
aim: implementing diversity and inclusion maximizes that force. Therefore, we place thosevalues at the core of our management strategy.
We take the approach of “leveraging each person's individuality” and at the same time

Reliable Products

Diversity and Inclusionof People
Human Resource
Development
Fostering Organizations thatare Diverse and Dynamic

develop relationships of mutual trust. In that way, we will create conditions where

Achieving a Healthy andeveryone can demonstrate their strengths and play an active role. By enhancing our ability

Worker-friendly Workplace

to respond to changes (resilience) and creating new value (innovation) throughEnvironment

augmenting the diverse knowledge generated by various individuals, we will continue toaddress those customers' and society's challenges.

Achieving Sustainable— Five Guidelines for implementing the Policy —Promotion of Sustainable

1. Understanding and Respecting Individuals
The Morinaga Group is aware of, recognizes and mutually respects each person's
differences.
When all employees properly understand unconscious bias and enhance the quality
and quantity of communication, they will grasp one another's ways of thinking, values
and backgrounds. They will then leverage differences among those elements to
produce synergistic effects.

Value Chains
Raw Material Procurement
Promotion of CSR Supply
Chain Management
Reduction of Food Loss and
Waste
Promotion of Waste
Reduction

Co-existence and co-

2. Promoting the Active Participation of All Employees
The Morinaga Group aims to enable all employees to play an active role.
We will strive to create circumstances where every one of them can expand theirpotential and demonstrate their abilities—regardless of age, gender, race, nationality,community, education, beliefs, religion, disabilities, sexual orientation, gender identity,
health status, or other attributes—through putting the right people in the right positions
according to their experience and abilities.

prosperity with local
communities

Conserving the Global
Environment
Response to Climate
Change Issues

3. Providing Fair Support
The Morinaga Group respects every employee and provides fair support byunderstanding employees' diverse lifestyles.
The Group will strive to create good working environments and conduct fair evaluations
according to employees' achievements and contributions to the company. In that way,the employees will be able to participate actively—even when various circumstancesand constraints arise.

Information Disclosure
Following the TCFD
Recommendations
Promotion of Environmental
Consideration in Containers
and Packaging
Effective Use of Water

4. Building Relationships of Trust

Resources

The Morinaga Group values relationships of mutual trust.
All employees will build relationships of mutual trust with one another by having a spiritof altruism and valuing connections among people.

5. Emphasizing Independence and Challenge
The Morinaga Group aims to grow in line with the personal growth of its employees.
The Group will provide various opportunities such that all employees can grow as
professionals who act autonomously while considering their own lifestyles and ways ofworking. The Group will also value an attitude of independence and willingness to takeon challenges as a mindset that is essential for growth.

Biodiversity
Management ofEnvironmental Pollutants

Strengthening theBusiness Management
Foundation
Build a Highly Transparent
and Efficient Governance
SystemHuman Rights Management(Established: April 2021)

Participation in Initiatives
Indices and Awards

Systems and initiatives to support diversity and inclusion

Sustainability Policies& Guidelines

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).

Integrated Report
ESG Data
GRI Standards

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.
Meanwhile, to increase the percentage of male employees who take childcare leave, we have been making efforts
including revising manuals, cooperating with the All Morinaga Labor Union, and speaking individually with
employees.

Sustainable Finance
IR Library

Goal for 2030

20% for ratio of female managers** Morinaga & Co., Ltd. (non-consolidated)* 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 parentfriendly company.

Outline of Programs and Schemes (MORINAGA & CO.,LTD.)
Program Title（For Women）

Scheme Outline

Outpatient/ morning sickness leave

A leave of up to 7 days if it is difficult to work during pregnancy orwithin 1 year after giving birth

Prenatal and postnatal leave

A leave of 6 weeks before and 8 weeks after childbirth

Program Title（Regardless of gender）

Scheme Outline

Childcare leave at the time of birth

A leave of up to 4 weeks in total within 8 weeks after childbirth(can be taken in parts)

Childcare leave

A leave of up to 30 months (can be taken in parts)

Shorter work hour system for

4 working hours until the child reaches 18 months of age; 6childcareworking hours until the child completes the third grade ofelementary schoolChild nursing leave

Up to 5 days a year in the case of one child or up to 10 days ayear in the case of 2 or more children in the third grade ofelementary school or younger

Long-term nursing care leave/ short

A total of up to 1 year for each family member in need of nursing

working hours for nursing care

care, if the long-term nursing care leave and the 4-short working
for nursing care are combined

Nursing care leave

Up to 5 days a year for one family member or up to 10 days ayear for two or more family members in need of nursing care;available in units of 1 day

Angel Return Program

Employees may rejoin the company after their voluntarly turnover

ESG Data: Acquisition record of each programs:

Promotion of Employing People with Disabilities
Under the company policy of providing a place where each employee can demonstrate their personal qualities andskills, we have employees with disabilities playing an active role in a range of workplaces within the company fromthe Administration and Sales Divisions to the Production Division. In the future, we will continue to proactively
create employment opportunities for people with disabilities.
ESG Data: Employment rate for people with disabilities

Reemployment
Morinaga has introduced a retiree reemployment system. As a general rule, all retiring employees who wish to do
so are reemployed for the period until they reach the age of eligibility for pension benefits. We have also
introduced a senior ranking system and evaluation system in the expectation that employees will continue todemonstrate their expertise even after retirement age, encouraging motivation and the desire to take onchallenges.
ESG Data: No. of employees wishing to be reemployed after retirement and Reemployment rate of post
retirement employees

Joint Diversity Promotion Activities by Six Food Companies
Sharing a number of similarities in their business models, history, and personnel issues, a group of six foodcompanies, including Morinaga, formed a collaborative network in an effort of promoting diversity and inclusion
beyond organizational boundaries and contributing to the improvement of corporate value and the development of
the food industry. In the Network, they jointly organize a wide range of events such as the Diversity Forum.
(The six food companies: Sapporo Holdings Limited, Nichirei Foods Inc., Nisshin Seifun Group Inc., Morinaga &Co., Ltd., Morinaga Milk Industry Co., Ltd., and Lotte Co., Ltd.)
Initially, the group focused on the promotion of active participation of women in society. Later, they came to theview that, in order to create a vibrant industry that can continue to provide new value to its customers, each andevery employee, irrespective of gender, must fully demonstrate his or her strength. Based on the view, the group
expanded the scope of their activities to the promotion of the spirit of diversity and inclusion. In January 2020, aDiversity Forum entitled “SPIRAL UP!—What is Kaisha for you?” was held at 64 satellite venues nationwide, andparticipated by approximately 900 people in total.

Home > Sustainability at Morinaga Group > Diversity and Inclusion of People > Achieving a Healthy and Worker-friendly Workplace Environment

Achieving a Healthy and Worker-friendly Workplace
Environment
Basic StanceRealizing Work-life Balance

Promotion of Health Management

Sustainability at
Morinaga Group
Sustainability

Basic StanceManagement
Sustainability Advisory
Board

In order to create better values for society, it is essential to maintain and promote “health of mind and body” among
employees and their families and develop a workplace environment for employees to work actively and healthily.
To this end, we are promoting initiatives on work-life balance and health management.

Identifying theMateriality
Stakeholder
Engagement

Realizing Work-life BalanceContributions to Healthy
Lives of People around
the World

We are cutting back on the annual total labor hours and developing a worker-friendly labor environment aimed at
striking a balance between work and life. We have introduced systems such as teleworking, flextime, staggered
commuting, and personal holiday calendar where employees can set their holidays freely, and are minimizing
restrictions based on time, location, and weekdays in creating an environment that is employee-friendly. We havealso enabled employees to select working styles where they do not have to relocate, if so desired. We hope toenable work that suits each employee's requirement by family, childcare, nursing care, etc.

Contribute to “Health ofMind, Body, andEnvironment”
Corporate Citizenship
Provision of Safe andReliable Products

Fostering Organizations that Diverse and Dynamic～Systems and initiatives to support diversity and inclusion

Diversity and Inclusion

Total annual working hours, Average overtime hours, Annual paid leave acquisition rate, and so on: "ESG Data"

of People
Human Resource
Development
Fostering Organizations thatare Diverse and Dynamic

Telework system
In April 2017, Morinaga introduced a telework program that covers approximately 1,000 employees. At the time ofAchieving a Healthy andWorker-friendly Workplace
Environment

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.

Promotion of Health Management

Achieving Sustainable
Value Chains
Promotion of Sustainable
Raw Material Procurement
Promotion of CSR Supply
Chain Management
Reduction of Food Loss andWaste

For our group, our employees are important stakeholders and are essential for us to change into a wellness
company in 2030.
Considering that our initiatives to maintain and promote “health of mind and body” among employees will lead torevitalization of our organization, such as enhancement of vitality of our employees and productivity, we havestrengthened our commitment by establishing the Morinaga Health Declaration in 2018.

Promotion of Waste
Reduction

While maintaining this declaration as our guideline also in the future, we will strategically work on promotion ofhealth management along with diversity promotion efforts as well as improvement and enhancement of work
style reform and engagement. By realizing a workplace environment where employees can work actively andhealthily, we will continue to create better value for society, aiming to achieve sustainable growth of our Group.

Co-existence and coprosperity with local
communities

Conserving the Global
Environment

Morinaga Group Declaration on HealthResponse to Climate
Change Issues
Information Disclosure

As a sustainable company that keeps growing, we are committed to promoting thehealth of each and every employee working for the Morinaga Group, in order to makefood that contributes to keep people’s mind and body healthy toward the creation of asustainable society where everyone can lead happy lives.

Following the TCFD
Recommendations
Promotion of Environmental
Consideration in Containers
and Packaging
Effective Use of Water

1. We support each and every employee so that they can enhance their awarenessResources

towards their health and work proactively to maintain and improve their health.

Biodiversity

2. We will promote diversity management and support employees' challenges andManagement ofEnvironmental Pollutants

autonomous growth to enhance engagement.
3. We will strive to create a work environment where our employees can work safely andsecurely.

Strengthening theBusiness Management
Foundation
Build a Highly Transparent
and Efficient Governance

Health Management Promotion Structure
Our Health Management Promotion Structure is as shown in the figure below.

SystemHuman Rights Management
Participation in Initiatives
Indices and Awards

Sustainability Policies& Guidelines
Integrated Report
ESG Data
GRI Standards
Sustainable Finance
IR Library

ESG Data: Percentage of employees participating in health checkups
The Health Promotion Committee creates philosophy and policies, analyzes issues, sets goals, and plansmeasures. Under the leadership of the Chief Health Officer (CHO), who reports directly to the President andRepresentative Director, the Committee will continue to strengthen information sharing and collaborations withoccupational health staff and the Morinaga Health Insurance Association, and will promote initiatives to help
employees realize rich and fulfilling lives in a cross-sectoral manner.

Health Management Strategy Map
We have organized our management issues and health indicators based on Guidelines for Administrative
Accounting of Investment in Health and Productivity Management.

Health Management Strategy Map(for more details)

Goal and Initiatives
The employee survey"Employees find their job meaningful at work and they are in good mental andphysical health at work"
Rate of positive responses: 80%

In achieving health management, we believe it is important for each and every employee to be able to work
vigorously while realizing job satisfaction and mental and physical health. To that end, we are implementing
initiatives regarding (1) health of mind, (2) health of body, and (3) labor environment.

As for (1) health of mind, we are maintaining 90% or more of the rate of our employees undergoing stress checks
and implementing various measures based on stress check analysis. We also hold seminars on strengthening
stress tolerance and women-specific health issues.

As for (2) health of body, we are working on reducing the total number of annual working hours and are committed
to maintaining 100% in the rate of employees undergoing medical examinations. We hold a health forum every
year and the theme for FY2021 was "the importance of health checkups". Many employees participated in theseminar online from across the country, and in the post-seminar questionnaire, we received comments saying thatthey were able to deepen their understanding towards the results of health checkups.
Health Forum Data since FY2011
Number of forums held

29

Number of participants

501

Health ForumWe also hold an event called “Habit” every year as part of a company-wide health promotion initiative incollaboration with the Morinaga Health Insurance Association, thus individual employees set health goals suitable
for themselves and work on maintaining and improving their health.

As for (3) labor environment, we are working to deter the spread of the infectious disease by ensuring the following
infection prevention measures: staggered working hours, utilization of telework, washing and disinfecting hands
when arriving at the workplace, and maintaining seating distance from other workers.

In the future, we will also enhance measures for senior workers in order to create a workplace where such workers
with rich experience and high skills can play more active roles.

Recognized as The Certified Health and Productivity Management
Organization
This is a program from the Ministry of Economy, Trade and Industry and Nippon Kenko Kaigi intended forrecognizing companies, including large enterprises and small to medium-sized enterprises, for their outstanding
efforts towards promoting health through their health and productivity management. Morinaga & Co., Ltd. has been
selected for six consecutive years since 2018 as a "Certified Health & Productivity Management Outstanding
Organization in the large enterprise category".
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.

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, we have been working to improve occupational health and safety, by ensuring that all employees
receive safety education that is reviewed as necessary, while taking safety measures for using company
equipment, Illustrating the results of our safety efforts.

Occupational Health and Safety Policy
Occupational Health and Safety Management System
ESG Data: LTIFR and TRIR

Home > Sustainability at Morinaga Group > Achieving Sustainable Value Chains

Achieving Sustainable Value Chains
Taking actions to address social issues relevant to our businesses across the entire value chain in contributing to asustainable society.

Sustainability at
Morinaga Group
Sustainability

Materiality
Achieve Sustainable Value Chains

Main challenges included in materiality
1. Sustainable procurement of raw materials

Management
Sustainability Advisory
Board

Identifying theMateriality

2. Human rights and environmental issues in the production stage of agricultural raw materials
3. Reduce food loss and waste

Stakeholder

4. Co-exist and co-prosper with local communities

Engagement

Main expected opportunities and risks<opportunities>

Contributions to Healthy
Lives of People around
the World・Achieving long-term stable procurement of safe and high-quality raw materials

Contribute to “Health of・Reducing human rights and environmental risks

Mind, Body, and・Lowering costs by reducing manufacturing loss and returns
・Increasing social trust

Environment”
Corporate Citizenship<risks>Provision of Safe and・Growing risks surrounding procurement of agricultural raw materials due to delayed response

Reliable Products

・Declining social trust, brand value, and corporate value
・Declining social reputation due to delayed response・Growing operational risks at business sites, etc.

Diversity and Inclusionof People
Human Resource

Main Actions Ahead of 2030

Development
Fostering Organizations that

1. Promote sustainable raw materials procurement

are Diverse and Dynamic

2. Promote CSR supply chain management

Achieving a Healthy and3. Reduce food loss and waste

Worker-friendly Workplace

4. Co-exist and co-prosper with local communities

Response to SDGs

Environment

Achieving Sustainable
Value Chains
Promotion of Sustainable
Raw Material Procurement
Promotion of CSR Supply
Chain Management
Reduction of Food Loss and
Waste
Promotion of Waste
Reduction
Co-existence and coprosperity with local
communities

Basic StanceConserving the Global
Environment
With the intensifying severity of social issues such as climate change, all stakeholders are expected to addressthese issues in accordance with their own abilities and responsibility. The Morinaga Group is also making efforts torealize “health of environment” which will contribute to the sustainability of society and the environment throughout
our entire value chain. In particular, we consider human rights and environmental issues in the production phase of
agricultural raw materials, social and environmental issues that arise in the supply chain when procuring raw
materials, challenges in stable procurement, and food loss and waste as our top priorities. As such, it is our plan to

Response to Climate
Change Issues
Information Disclosure
Following the TCFD
Recommendations
Promotion of Environmental
Consideration in Containers

promote sustainable raw materials procurement, CSR supply chain management, and food loss and waste

and Packaging

reduction.

Effective Use of Water
Resources
Biodiversity
Management ofEnvironmental Pollutants

Strengthening theBusiness Management
Foundation
Build a Highly Transparent
and Efficient Governance
SystemHuman Rights Management
Participation in Initiatives
Indices and Awards

Sustainability Policies& Guidelines
Integrated Report
ESG Data
GRI Standards
Sustainable Finance
IR Library

、9
”
會

／

� ＇·

‘
,

Co-existence and co­prosperity with local
communities

I Related information
Supplier GuidelineE]＞

ESG Data＞

Procurement Policy

Home > Sustainability at Morinaga Group > Achieving Sustainable Value Chains > Promotion of Sustainable Raw Material Procurement

Promotion of Sustainable Raw Material Procurement
Basic Stance

Medium- to long-term targets for
Sustainable Raw Material Procurement

Cacao beans

Palm oil

Sustainability at
Morinaga Group
Sustainability
Management

Paper

Sustainability Advisory
Board

Basic Stance

Identifying theMateriality

Based on the Morinaga Group Procurement Policy, we intend to contribute to the realization of a sustainable
society by building transparent, fair and equitable relationships with our business partners, and cooperating withthem to conduct socially-responsible and environment-friendly procurement activities.

Stakeholder
Engagement
Contributions to Healthy
Lives of People around

Morinaga Group Procurement Policy

the World
Contribute to “Health of

In order to realize food safety and reliability as well as a sustainable society, the Morinaga
Group endeavors to build fair and equitable relationships with our business partners andcarry out procurement activities that are considerate of society and the environment.

Mind, Body, andEnvironment”
Corporate Citizenship
Provision of Safe andReliable Products

1. Compliance/adherence to social norms, etc.
We comply with laws and social norms, etc., carrying out healthy procurement activities
in accordance with the Morinaga Group's Code of Conduct.

Diversity and Inclusionof People
Human Resource

2. Product quality/safety assurance

Development

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

Fostering Organizations thatare Diverse and Dynamic
Achieving a Healthy and3. Strengthening partnerships

Worker-friendly Workplace

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

Environment

Achieving Sustainable
Value Chains

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 fairand equitable trading activities.

Promotion of Sustainable
Raw Material Procurement
Promotion of CSR Supply
Chain Management
Reduction of Food Loss and5. Consideration for human rights/work environment/safety
Based on the Morinaga Group's human rights policies, we carry out procurement
activities giving consideration to human rights, the work environment, and safety.

Waste
Promotion of Waste
Reduction
Co-existence and co-

6. Consideration for the global environment

prosperity with local

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.

(Established: May 2018)

communities

Medium- to long-term targets for Sustainable Raw
Material Procurement

Conserving the Global
Environment
Response to Climate
Change Issues

Goal for 2030

Information Disclosure
Following the TCFD
Recommendations

100% for cacao beans, palm oil, and paper*1

Promotion of Environmental
Consideration in Containers
and Packaging*1 Group consolidated. Paper covers product packaging only.

Effective Use of Water
Resources

Medium-term Targets

Biodiversity
Management ofEnvironmental Pollutants

Raw materials for products of Morinaga & Co., Ltd. sold in Japan• Cacao beans Switch to 100% of cacao beans from sustainable sources by FY2026/3

Strengthening the• Palm oil Switch to 100% of palm oil from sustainable sources by FY2024/3

Business Management
Foundation• Paper Switch to 100% of paper from sustainable sources by FY2023/3*2

Build a Highly Transparent
and Efficient Governance
System*2 Paper covers product packaging only.

Human Rights Management
Participation in Initiatives

Progress of Medium-term Targets

Initiatives

Indices and Awards

Single Month Results for
March 2022

Results for FY2022/3

Sustainability Policies& Guidelines

Cacao beans

9%Palm oil

2%

6%

Paper

98%

-

26%

Integrated Report
ESG Data※ Scope: Morinaga products in Japan. Paper covers product packaging only.

GRI Standards
Sustainable FinanceCacao beans
Cacao beans, a key raw material for chocolate, are associated with a range of social issues including poor working
conditions of cacao farmers, poverty, child labor, and global warming due to deforestation. During the fiscal year
ending March 31, 2021, the Morinaga Group started using certified cacao beans (Cocoa Horizons*1*2-certified
cacao supplied by the Barry Callebaut Group) in some of its chocolate products.
Guidelines for the Procurement of Cacao Beans*1 Cocoa Horizons is a non-profit program run by the Cocoa Horizons Foundation, an NPO whose vision is to promote the prosperityof cacao farmers by building self-sustaining communities that protect nature and children. By using cacao raw materials that meetthe certification standards of Cocoa Horizons Foundation, the Morinaga Group can contribute to supporting better lives of cacao
farmer, reducing deforestation and CO₂ emissions, and eradicating of child labor.
*2 Cocoa Horizons' cacao certification is a mass balance system (a certification model that allows certified and non-certified
ingredients to be mixed).

IR LibraryWe work to understand the realities of cacao farmers by such means as having directors in charge visit cacao
sapling farms.

Inspection Scenery

Collaboration with Cacao Farmers and Production Partners(Vietnam)
In order to deliver high quality chocolate to our customers, we are particular about the taste and aroma of the
cacao beans used as raw materials.
At times, our researchers interact with partners in producing regions to jointly develop high-quality cacao beans. In
Vietnam, for example, we worked with the partners, including farmers, to pursue optimal quality control andfermentation conditions for cacao beans, leading to quality improvement and stable income for farmers.

Supporting Education and Preventing Child Labor in Cacaoproducing Countries (One Chocolate for One Smile)
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.
In cooperation with NGOs, we are working to support education and the eradication of child labor in cacaoproducing countries.

Children in Ghana enjoying school meals provided by the support program

Plan International
ACE (Action against Child Exploitation)

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

Endorsing the Elimination of Child Labor in the Cacao Industry
The Morinaga Group endorses the Action Plan to Eliminate Child Labour in the Cocoa Industry, a cacao industry
issue promoted by Platform for Sustainable Cocoa in Developing Countries, for which the Japan International
Cooperation Agency (JICA) serves as the secretariat. This platform is a place where Japanese companies, nongovernmental organisations (NGO), and other organizations related to the cacao industry collaborate to solve
issues facing the industry such as farmer poverty, deforestation, and child labor. The goal is to realize asustainable cacao industry. By using the Action Plan to Eliminate Child Labour in the Cocoa Industry as a practicalguidance for understanding, preventing, and reducing child labor, which is one of the major issues related tobusiness and human rights, we will increase efforts to promote human rights relateed to supply chain.
As a member of the "Sustainable Cacao Platform in Developing Countries," we will continue our efforts to resolvethese issues.
"Platform for Sustainable Cocoa in Developing Countries"

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 Morinaga Group uses palm oil in many of its products, and regards it as necessary to switch to certified palmoil (e.g., RSPO* -certified) that contributes to sustainable procurement.
Guidelines for the Procurement of Palm Oil* 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 the incorporation of illegal
timber products into these raw materials has become an issue. The Company aims to help prevent global warmingby making effective use of timber resources that are not associated with illegal logging or destruction of
ecosystems, and are not harmful to the environment 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.
Guidelines for the Procurement of Paper*1 FSC® (Forest Stewardship Council®): An international NPO that works to ensure that forests are used appropriately andprotected.
*2 FSC®-certified paper: Paper made of raw materials from managed sources of supply, including raw materials that have beenassessed and certified as deriving from forests where forest management and logging are controlled appropriately to preserve
ecosystems as a means of environmental conservation.

Paper

ESG Data: Sustainable Raw Material Ratio, etc

Other raw materials
We will also examine measures for other raw materials believed to pose new risks in the future.
Promotion of Environmental Consideration in Containers and Packaging including Plastic

Home > Sustainability at Morinaga Group > Achieving Sustainable Value Chains > Promotion of CSR Supply Chain Management

Promotion of CSR Supply Chain Management
Basic Stance

Sustainability at
Morinaga GroupIn the supply chain, we will work together with business partners such as raw material suppliers in order to avoid
conflicts with human rights, labor, or the environment.

Sustainability
Management
Sustainability Advisory
Board

CSR Supply Chain Management: Long-Term Targets

Identifying theMateriality

Goal for 2030

Stakeholder
Engagement

Implement for 80% or more of raw materials transaction value*

Contributions to Healthy
Lives of People around* Group consolidated.

the World

Progress of Goal for 2030

Contribute to “Health ofMind, Body, andEnvironment”

Targets
Raw
FY2031/3

materials
Materials

Results for FY2022/3

80% or more

81%

80% or more

81%

Corporate Citizenship
Provision of Safe andReliable Products

Diversity and Inclusionof People※ Morinaga & Co., Ltd in japan (non-consolidated)

Human Resource
Development

See ”CSR Procurement Survey" below for more details about results for FY2022/3.

In June 2021, we formulated the Morinaga Group Supplier Guideline.
In October 2021, we held a briefing session for raw material suppliers with the participation of 49 companies.
Supplier Guideline

We share this guideline with our business partners and ask them to follow legal compliance, enact governance,
promote human rights, and reduce environmental impact. In addition, we regularly monitor their activities throughFostering Organizations thatare Diverse and Dynamic
Achieving a Healthy andWorker-friendly Workplace
Environment

Achieving Sustainable
Value Chains
Promotion of Sustainable
Raw Material Procurement

surveys and other means.

Promotion of CSR Supply

Furthermore, information on progress will be published hereafter on our website and by other means.

Chain Management
Reduction of Food Loss andStrengthening Partnerships with Business Partners

Waste
Promotion of Waste
Reduction
Co-existence and co-

In order to realize food safety and reliability as well as a sustainable society, it is necessary to have a cooperative
relationship with business partners based on trust throughout the supply chain, from procurement to production
and distribution.
At our annual information exchange meeting with cooperating companies, we exchange information on various

prosperity with local
communities

themes such as the "Morinaga Group Procurement Policy" (cooperation for procurement activities in the supply
chain that are considerate towards society and the environment) and content related to quality assurance. In July
2021, 42 companies participated. Also, thorough our Supplier Guideline, we promote our suppliers to strengthen

Conserving the Global

their initiatives by encouraging them to respect for human rights and consider for the working environment andEnvironment

occupational safety and health such as implementing employee health and workplace safety measures, managing

Response to Climate

appropriate working hours, and provide proper wage payments. We will continue to convey our cooperative stanceon sustainability to our business partners and ask them for their understanding and the implementation of
initiatives.

Change Issues
Information Disclosure
Following the TCFD
Recommendations
Promotion of Environmental

CSR Procurement Survey

Consideration in Containers
and Packaging
Effective Use of Water

To better understand the ESG measures of our raw material suppliers, in March 2022, we conducted a CSR
procurement survey on the 48 main business partners of Morinaga & Co., Ltd.(Japan).
In FY2022/3, we adopted the CSR/Sustainable Procurement Self-assessment Questionnaire of Global Compact

Resources
Biodiversity
Management ofEnvironmental Pollutants

Network Japan, which has a high affinity with our Supplier Guideline, to evaluate the main items of theenvironment and human rights.

Strengthening the

The survey response rate was 100%, with an average score of 85%. Scores for quality and safety were high at

Business Management

95% or higher together with raw materials, but scores for supply chain and coexistence with local communities

Foundation

were somewhat low. We will hold dialogues with suppliers that had low scores to encourage improvement.

Build a Highly Transparent

The Morinaga Group will continue building strong, long-term partnerships with suppliers through briefings andand Efficient Governancesurveys based on the procurement policy. Using regular monitoring, we will realize sustainable procurement bycontinuing activities following the Supplier Guideline.

SystemHuman Rights Management
Participation in Initiatives
Indices and Awards

Sustainability Policies& Guidelines
Integrated Report
ESG Data
GRI Standards
Sustainable Finance
IR LibraryI Achieving Sustainable Value Chains＞

Promoti on of Sustainable Raw
Materi al Procurement

Promoti on of Waste Reduction＞

Reducti on of Food Loss and Waste

Co-exi stence and co-prosperity withlocal communiti es>＞

I Related information
Procurement Pol icy＞

Sustainability a t Morinaga TOP＞

Reduction of Food Loss and Waste
Basic StanceFood Loss And Waste Reduction: LongTerm Targets

Initiatives to Reduce Food Waste
Emissions

Initiatives to recycle food wastes

Sustainability at
Morinaga Group
Sustainability
Management

Cooperation and Joint Efforts with Others
to Reduce Food Loss and Waste

Sustainability Advisory
Board

Identifying the

Basic StanceMateriality

As the world population increases, the reduction of food loss and waste has become a global issue, which as a

Stakeholder
Engagement

member of the food industry, we must seriously address. As the first step for the Morinaga Group, we haveestablished long-term goals for reducing food loss and waste occurring in the stages of raw materials receipt,

Contributions to Healthy

manufacturing, logistics and product delivery. Going forward, we will consider our efforts in the consumption stage,

Lives of People around

while contributing to the reduced occurrence of food loss and waste, improving the recycling rate and donations to

the Worldfood banks, in promoting a cycle and effective use of food resources.

Contribute to “Health ofMind, Body, andEnvironment”

Food Loss And Waste Reduction: Long-Term Targets

Corporate Citizenship
Provision of Safe andReliable Products

Goal for 2030
Diversity and Inclusionof People

Food loss and waste reduced by 70% from receiving of raw materials to delivery

Human Resource(distribution)

Development
Fostering Organizations thatare Diverse and Dynamic*1 Domestic Group consolidated

Achieving a Healthy and*2 Intensity [Annual Food Loss and Waste Amount (t) ÷ Annual Production Weight (t)]Worker-friendly Workplace*3 Compared to FY2020/3*4 Food loss and waste is defined as food that has been processed and disposed of by incineration, landfill, etc., except for foodEnvironment

waste that has been returned to the circulation of food resources, such as feed and fertilizer.

Achieving Sustainable
Value Chains

Progress of Goal for 2030

Promotion of Sustainable
Raw Material Procurement

TargetResults for FY2022/3

Promotion of CSR Supply
Chain Management

FY2031/3

-70%

+8%

Reduction of Food Loss andWaste* Scope: from receiving raw materials to product delivery (distribution) (Domestic Group consolidated)

Promotion of Waste* Intensity [Annual Food Loss and Waste Amount (t) ÷ Annual Production Weight (t)] (Compared to FY2020/3)

Reduction* Food loss and waste is defined as food that has been processed and disposed of by incineration, landfill, etc., except for food waste

Co-existence and co-that has been returned to the circulation of food resources, such as feed and fertilizer.

prosperity with local
communities

ESG Data: Progress of Food Waste Emissions and Recycling Rate, etc.

Conserving the Global
Environment

Response to Climate

Initiatives to Reduce Food Waste Emissions

Change Issues
Information Disclosure
Following the TCFD
Recommendations

In order to achieve the goal of reducing food loss and waste, we are committed to reducing food waste emissions
by continuously undertaking productivity improvement activities and improving our mainstream work processes
through, for example, the reduction of process losses.

Promotion of Environmental
Consideration in Containers
and Packaging
Effective Use of Water
Resources

Initiatives to recycle food wastes

Biodiversity
Management ofEnvironmental Pollutants

Our factories are endeavoring to reduce the generation of waste and to recycle the food wastes they generated bytransforming them mainly to animal feed, fertilizer, and raw materials for methane fermentation. Due to their

Strengthening theBusiness Management

characteristics, our product wastes are not always suitable for recycling. However, in the future, we will continue toFoundation

promote recycling by selecting food waste recyclers in a manner aligned with our products’ characteristics in order

Build a Highly Transparent

to achieve the goal of reducing food loss and waste.

and Efficient Governance
SystemHuman Rights Management
Participation in Initiatives

Cooperation and Joint Efforts with Others to Reduce
Food Loss and Waste

Indices and Awards

Sustainability Policies& Guidelines

Committing to the UN Food Systems Summit
Through the Ministry of Agriculture, Forestry and Fisheries, the Morinaga Group has declared its support for the
UN Food Systems Summit held in September 2021, and has submitted its commitment towards achievement of
the sustainable development goals.

Integrated Report
ESG Data
GRI Standards

Going forward, the Group will work to cut down greenhouse gas emissions, pursue sustainable raw-materials
procurement, and reduce Food Loss and Waste with the aim of contributing to sustainable food systems as set
forth at the Food Systems Summit, particularly to boosting nature-positive production and to the shift tosustainable consumption patterns.

Donating to the Japan Association for the World Food
Programme's Zero Hunger Challenge
The World Food Programme is the sole food-assistance organization of the United Nations, and it is dedicated toachieving zero hunger.
The Japan Association for the World Food Programme is conducting a campaign titled Zero Hunger Challenge:
Food Loss and Waste x Zero Hunger under the concept of providing school meals to children in developing
countries through efforts to reduce Food Loss and Waste.
The campaign is aimed at achieving a zero-hunger world in which everyone can eat, and it links people's efforts to
reduce Food Loss and Waste with support for school meals for children suffering from hunger in developing
countries.
We have been donating to this campaign since FY2021/3.

Sustainable Finance
IR LibraryParticipating in Osaka Prefecture's Food Loss and Waste
reduction network roundtable
Osaka Prefecture has set up a Food Loss and Waste reduction network roundtable to verify the outcomes ofefforts being made on measures based on its plan to reduce Food Loss and Waste, as well as on related issues,by diverse actors including consumers, government bodies, and businesses engaged in the manufacture,
wholesale, and retail of food, as well as in food services and other operations. The objective is to devise more
effective reduction methods and other measures.
Morinaga has endorsed Osaka's plan from FY2022/3, and attended the first Food Loss and Waste reduction
network roundtable for the fiscal year. At the meeting, we shared information on the challenges that our sales
teams face on the issue of reducing Food Loss and Waste during distribution. Going forward, we plan to discuss
examples of specific actions taken by Morinaga on Food Loss and Waste.

Home > Sustainability at Morinaga Group > Achieving Sustainable Value Chains > Promotion of Waste Reduction

Promotion of Waste Reduction
Basic Stance

Initiatives to Reduce Waste Emissions

Promotion of Waste Recycling

Waste Classification and Management

Cooperation and Joint Efforts with
Outside Parties

Sustainability at
Morinaga Group
Sustainability
Management
Sustainability Advisory
Board

Basic Stance

Identifying theMateriality

With the aim of creating a circular economy, Morinaga is promoting the reduction of waste emissions and recycling

Stakeholder

activities.

Engagement

Initiatives to Reduce Waste Emissions

Contributions to Healthy
Lives of People around
the World
Contribute to “Health of

We are committed to reducing waste emissions by continuously undertaking productivity improvement activities
and improving our mainstream work processes through, for example, the reduction of process losses.
ESG Data: Waste Emissions

Mind, Body, andEnvironment”
Corporate Citizenship
Provision of Safe andReliable Products

Promotion of Waste Recycling

Diversity and Inclusionof People
Human Resource

All Morinaga Group factories are working on the improvement of recycling rates. Going forward, we will continue toDevelopment

ensure an effective use of resources and promote efforts to convert them into value-added materials.

Fostering Organizations that

ESG Data: Waste Recycling Rate
Initiatives for reducing plastic waste: in Jelly Recycling Program

Waste Classification and Management

are Diverse and Dynamic
Achieving a Healthy andWorker-friendly Workplace
Environment

Achieving Sustainable
Value Chains
Promotion of Sustainable
Raw Material Procurement

Morinaga's four factories and three affiliated production companies are working on the waste classification andPromotion of CSR Supply

management to ensure an effective use of resources.

Chain Management
Reduction of Food Loss and

ESG Data: Waste Actual Results

Waste
Promotion of Waste
Reduction
Co-existence and coprosperity with local
communities

Cooperation and Joint Efforts with Outside Parties toPromote Trash Separation and Recycling around Town

Conserving the Global
Environment
Response to Climate

The Morinaga Group supported the installation of SmaGO smart trash bins, which incorporated IoT technology,

Change Issues

along Omotesando and at Rayard Miyashita Park during 2020 and 2021.

Information Disclosure* SmaGO smart trash bins: Using electricity generated by the solar panels installed on the top, the bins communicate with cloud

Recommendations

servers via a 3G network enabling the amount trash inside to be monitored in real time. When the bins become full, trash iscompressed automatically, making room for 5 to 6 times more trash than conventional bins. This makes for more efficient trashcollection, and it promises reductions in the costs and CO2 emissions associated with collection. Because the bin uses only solar
power, there are no electricity costs. SmaGO's side lid opens with a foot pedal, so trash can be thrown in without touching the lid.
* The SmaGO smart trash bin project is provided by Forcetech Inc.

Following the TCFD

Promotion of Environmental
Consideration in Containers
and Packaging
Effective Use of Water
Resources
Biodiversity
Management ofEnvironmental Pollutants

Strengthening theBusiness Management
Foundation
Build a Highly Transparent
and Efficient Governance
SystemHuman Rights Management
Participation in Initiatives
Indices and Awards

Sustainability Policies& Guidelines
Integrated Report
ESG Data
GRI Standards
Sustainable Finance
IR LibraryHome > Sustainability at Morinaga Group > Achieving Sustainable Value Chains > Co-existence and co-prosperity with local communities

Co-existence and co-prosperity with local
communities
Contributions to Areas Home to Our Headquarters or
Offices

Sustainability at
Morinaga Group
Sustainability

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.
Furthermore, we participate in local cleanup activities in the areas near our factories and offices to promote
communication with local communities.

Management
Sustainability Advisory
Board

Identifying theMateriality
Stakeholder
Engagement
Contributions to Healthy
Lives of People around
the World
Contribute to “Health ofMind, Body, andEnvironment”
Corporate Citizenship
Provision of Safe andReliable Products

Diversity and Inclusionof People
Human Resource
Development
Fostering Organizations thatare Diverse and Dynamic
Achieving a Healthy andWorker-friendly Workplace
Environment

Achieving Sustainable
Value Chains
Promotion of Sustainable
Raw Material Procurement
Promotion of CSR Supply
Chain Management
Reduction of Food Loss and
Waste
Promotion of Waste
Reduction
Co-existence and coprosperity with local
communities

Support with our Product to Heavy Rain Disaster Areas
As relief supplies to Kumamoto prefecture, which was affected by heavy rain and floods in July 2020, we provided
24,000 units of in Jelly for easy nutritional support.

Conserving the Global
Environment
Response to Climate
Change Issues
Information Disclosure
Following the TCFD
Recommendations

Support for the Fight against COVID-19

Promotion of Environmental
Consideration in Containers
and Packaging

We provided 360,000 units of in Jelly to medical institutions and donated to the WeSupport project, which offers

Effective Use of Water

food support to healthcare workers.

Resources

Through Meals on Wheels Japan and Musubie, the national children's cafeteria support center, we provided

Biodiversity

30,000 units of confectioneries to children's cafeterias.

Management of

We made a donation for the purpose of addressing the COVID-19 pandemic to the city in which Morinaga(Zhejiang) Co., Ltd. is located.

Environmental Pollutants

Strengthening theBusiness Management
Foundation

Supporting local activities towards sustainability
In support of Yokohama city's ethical consumption campaign promoting the purchase of environment-friendly andsocially-responsible products, we provided our products as gifts to be given out as part of the campaign.

Build a Highly Transparent
and Efficient Governance
SystemHuman Rights Management
Participation in Initiatives
Indices and Awards

Supporting Education and Preventing Child Labor in Cacaoproducing Countries
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.
In cooperation with NGOs, we are working to support education and the eradication of child labor in cacaoproducing countries.
Plan International
ACE (Action against Child Exploitation)

Sustainability Policies& Guidelines
Integrated Report
ESG Data
GRI Standards
Sustainable Finance
IR LibraryHome > Sustainability at Morinaga Group > Conserving the Global Environment

Conserving the Global Environment
In order to achieve “health of environment,” we strive for the health of society surrounding people by minimizing
environmental impacts in our important business activities and conducting environmental conservation activities
from a medium- to long-term perspective.

Sustainability at
Morinaga Group
Sustainability
Management

Materiality
Conserve the Global Environment

Main challenges included in materiality

Sustainability Advisory
Board

Identifying theMateriality

1. Mitigate and adapt to climate change
2. Eco-friendly plastic containers and packaging along with recycling and reuse

Stakeholder
Engagement

Main expected opportunities and risks<opportunities>
・Creation of innovation through external collaboration

Contributions to Healthy
Lives of People around
the World<risks>Contribute to “Health of・Growing risks in procurement of agricultural raw materials

Mind, Body, and・Rising production costs due to carbon taxes, etc.
・Declining corporate value due to delayed response

Environment”
Corporate Citizenship
Provision of Safe andMain Actions Ahead of 2030
1. Respond to climate change issues
2. Promote environmental consideration in containers and packaging
3. Effective use of water resources

Response to SDGs

Reliable Products

Diversity and Inclusionof People
Human Resource
Development
Fostering Organizations thatare Diverse and Dynamic
Achieving a Healthy andWorker-friendly Workplace
Environment

Achieving Sustainable
Value Chains
Promotion of Sustainable
Raw Material Procurement
Promotion of CSR Supply
Chain Management
Reduction of Food Loss and
Waste
Promotion of Waste
Reduction
Co-existence and coprosperity with local
communities

Conserving the Global
Environment

Basic Stance

Response to Climate

Change Issues
Information Disclosure

Global environmental issues, such as climate change and plastic pollution, can potentially impact the Group'sbusiness and performance over the medium- to long-term. We will accelerate our initiatives on environmental
conservation appropriately and strategically following our environmental policy in achieving sustainable growth for
the Group and providing “health of environment.”

Following the TCFD
Recommendations
Promotion of Environmental
Consideration in Containers
and Packaging
Effective Use of Water
Resources
Biodiversity

Morinaga Group Environmental Policy

Management ofEnvironmental PollutantsThrough our business activities, the Morinaga Group promotes the creation of asustainable circular economy.
We are also continually improving our environmental management system, implementing

environmentally conscious initiatives in various aspects of our business activities.

Strengthening theBusiness Management
Foundation
Build a Highly Transparent

1. Compliance with environment-related laws, ordinances, andand Efficient Governanceregulations, etc.

System

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

Human Rights Management
Participation in Initiatives
Indices and Awards

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

Sustainability Policies& Guidelines
Integrated Report

3. Reduction of CO2 and other greenhouse gas emissions
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.

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

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

（Revised: May 2018）

ESG Data
GRI Standards
Sustainable Finance
IR LibraryResponse to Clima te
Change Issues

Promotion ofEnvironmental
Consideration in Containers
and Packaging

Effective Use of Water
Resources

Biodiversity

Management ofEnvironmental! Polluta nts

Promotion System and Environmental Management
The ESG Committee, which is chaired by the Representative Director and President, conducts deliberation,
formulation, and progress status review on important policies and goals related to the environment in order torealize these missions. The Environment Integration Office was established with members from Production
Administration Division and Sustainable Management Division to exchange information with the Factory
Environment Management Committee and other organs, as well as to promote continuous improvements to ourmanagement system and to reduce the environmental impacts and increase productivity.
We have built an environmental management system centered on ISO 14001. In July 1998, our Oyama Factoryacquired the ISO 14001 certification for the first time in the Japanese confectionery industry. Later, all factories andaffiliated production companies acquired the accreditation in sequence. In January 2018, the Morinaga Group's
Production Sites obtained multiple site certification (four factories of Morinaga & Co., Ltd., and three affiliatedproduction companies).
In April 2022, we also endorsed the recommendations of the Task Force on Climate-related Financial Disclosures(TCFD) and joined the TCFD Consortium. We will analyze and consider our initiatives to promote information
disclosure following the TCFD recommendations. For more information, please refer to "Initiatives in Response to
the TCFD Recommendations" which is linked below.
Initiatives in Response to the TCFD Recommendations

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.
Environmental Management System (EMS) Certification: ISO 14001* Only Japanese ver. is available

Home > Sustainability at Morinaga Group > Conserving the Global Environment > Response to Climate Change Issues

Response to Climate Change Issues
Basic Stance

Reduction of the Greenhouse gas (GHG) :Medium- to Long-Term Targets

Main Initiatives Aimed at Reducing
Greenhouse Gas Emissions

Initiatives to Reduce CO2 Emissions

Initiatives for Energy Saving

Major Initiatives in Logistics Process

Sustainability at
Morinaga Group
Sustainability
Management
Sustainability Advisory
Board

Basic Stance

Identifying the
The Group has set a long-term goal of net-zero greenhouse gas emissions by 2050 in order to contribute to theMateriality

realization of a decarbonized society. To achieve this goal, we are conducting carbon management including

Stakeholder

energy conservation and visualization of energy consumption. Going forward, we plan to utilize renewable energy.

Engagement

In April 2022, we also endorsed the recommendations of the Task Force on Climate-related Financial
Disclosures(TCFD) and joined the TCFD Consortium. We will analyze and consider our initiatives to promote
information disclosure following the TCFD recommendations. For more information, please refer to "Initiatives in
Response to the TCFD Recommendations" which is linked below.

Contributions to Healthy
Lives of People around
the World
Contribute to “Health ofMind, Body, andInitiatives in Response to the TCFD Recommendations

Environment”

Reduction of the Greenhouse gas (GHG) : Medium- to
Long-Term Targets
Goal for 2050

Corporate Citizenship
Provision of Safe andReliable Products

Diversity and Inclusionof People
Human Resource*1

Development

Goal of net-zero GHG emissions

Fostering Organizations thatare Diverse and Dynamic*1 Group consolidated basis.

Achieving a Healthy and

Goal for 2030

Worker-friendly Workplace

30% reduction in CO2 emissions*2

Achieving Sustainable

Environment

Value Chains
Promotion of Sustainable*2 Scope 1 + 2 (domestic Group consolidated, compared to FY2019/3)

Raw Material Procurement
Promotion of CSR Supply

Progress of Goal for 2030

Chain Management
Reduction of Food Loss andTargetResults for FY2022/3

Waste
Promotion of Waste

FY2031/3

-30%

+2%

Reduction
Co-existence and co-* Scope 1 + 2 (domestic Group consolidated basis; compared to FY2019/3).

ESG Data: Greenhouse Gas Emissions
In 2022/3, CO2 emissions increased owing to the new frozen desserts manufacturing line at Takasaki Morinaga
Co., Ltd., and other factors. We will continue to explore utilization of renewable energy while conserving energy to
reduce CO2 emissions.

prosperity with local
communities

Main Initiatives Aimed at Reducing Greenhouse Gas
Emissions

Conserving the Global
Environment
Response to Climate
Change Issues
Information Disclosure

Initiatives

Detail

1.Reducing CO2 emissions at• Promote visualization of CO2 emissions• Establish a highly efficient production system• Implement energy conservation initiatives (adopt high-efficiency andfactories

energy-saving equipment, operate air conditioning efficiently, etc.)

Following the TCFD
Recommendations
Promotion of Environmental
Consideration in Containers
and Packaging
Effective Use of Water
Resources• Consideration for switch to alternative fluorocarbons with a low
2.Initiatives at facilities using
fluorocarbons

ozone depletion potential and non-fluorocarbon materials• Strengthen preventive management of fluorocarbon leakage• Introduction of natural refrigerant equipment with zero ozone

depletion potential and low global warming potential (Morinaga Angel
Dessert Co., Ltd., Morinaga Dessert Co., Ltd.)

3.Initiatives in logistics• Improve loading rate and reduce transportation and delivery vehicles
by joining other companies in the industry in transportation anddelivery

Biodiversity
Management ofEnvironmental Pollutants

Strengthening theBusiness Management
Foundation
Build a Highly Transparent
and Efficient Governance
SystemInitiatives to Reduce CO2 Emissions

Human Rights Management
Participation in Initiatives
Indices and Awards

We are working on reducing emissions by measuring the overall volume of current CO2 emissions and making
emissions visible.

Because Morinaga's four factories and three affiliated production companies account for a large portion of our CO2

Sustainability Policies& Guidelines
Integrated Reportemissions, we are stepping up efforts chiefly in our production division.

ESG Data
GRI Standards
Sustainable Finance
IR Library

* Domestic Group consolidated basis. CO2 emissions are rounded up to the second decimal place.Figures for FY2021/3 and onward
are third-party-assured by LRQA.The Company applied the “Accounting Standard for Revenue Recognition (ASBJ Statement No.
29, March 31, 2020)”, etc., from the beginning of FY2022/3. The figures for FY2021/3 are from after retroactive application of thesaid accounting standard.

ESG Data: Greenhouse Gas Emissions
Third Party Guarantee

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
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. Moreover, freezers that use natural refrigerant wereadopted for the cold storage warehouse newly built at Takasaki Morinaga Co., Ltd. Going forward, we will workfrom various angles to further reduce the Group’s CO2 emissions.

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 the productivity of our core brands and responding to diversifying market needs, theMorinaga Group is reorganizing its production systems to make them highly efficient. In FY2020/3, in order toimprove productivity, the decision was made to merge Morinaga Snack Foods Co., Ltd. and Morinaga Kofu Foods
Co., Ltd. into the Company. The two production bases were closed, while their production lines were partiallytransferred to the Tsurumi Factory and the Oyama Factory and rebuilt there.
We also built a third factory on the premises of Takasaki Morinaga Co., Ltd., and started production of chocolates
in FY2021/3 and frozen desserts in FY2022/3.
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 Factory No.3

Promotion of Energy-saving
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 FY2021/3, we proactively went ahead with renewing air conditioning equipment at factories, and the resulting
energy savings are expected to lead to a 117.7-ton annual reduction in CO₂ emissions.
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 works to improve loading
rate using modal shift, joint deliveries with other companies, design product specifications for high loading rates,
and introduce demand forecasting using AI for optimal inventory allocation and upgrade supply operations, etc.
As a Specified Consignor* under the revised Act on the Rationalization etc. of Energy Use (“Energy SavingAct”),we calculate and identify the amount of CO2 emitted during transportation.
* 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.

Home > Sustainability at Morinaga Group > Conserving the Global Environment > Response to Climate Change Issues > Information Disclosure Following the TCFD Recommendations

Information Disclosure Following the TCFD
Recommendations
Scenario Analysis
Morinaga Group’s Important Opportunities

Morinaga Group’s Important Risks
Basic Approach to Initiatives andProgress

Sustainability at
Morinaga Group
Sustainability
Management

The Morinaga Group recognizes that climate change is an important issue that affects the continuity of its
operations and sustainable growth. In April 2022, we endorsed the recommendations of the Task Force on
Climate-related Financial Disclosures (TCFD), which was established by the Financial Stability Board (FSB). Since
then, we have been addressing the TCFD recommendations, including conducting climate change scenario
analysis.

Sustainability Advisory
Board

Identifying theMateriality
Stakeholder

Area

Details
The Morinaga Group’s analysis, target setting and progress monitoring of risks andopportunities concerning sustainability initiatives are deliberated on by the ESG
Committee, which is chaired by the Representative Director, President. The Board of
Directors receives reports from the committee and monitors the status of activities.
In FY2023/3, the ESG Committee convened eight times. The deliberations of the ESG
Committee are considered in various aspects of decision making concerning
management.
For the examination of climate change matters, we established the TCFD Subcommittee*1
under the ESG Committee in FY2022/3. This subcommittee is responsible for analyzing
the Morinaga Group’s risks and opportunities and reviewing responses following the
TCFD recommendations.
The TCFD Subcommittee is led by the Director and Managing Executive Officer in charge

Governanceof the Sustainable Management Division. It convened two times in FY2023/3. The resultsof this review process are reviewed by the ESG Committee and then reported to theBoard of Directors, which supervises the status of activities.

Engagement

Contributions to Healthy
Lives of People around
the World
Contribute to “Health ofMind, Body, andEnvironment”
Corporate Citizenship
Provision of Safe andReliable Products

Diversity and Inclusionof People
Human Resource
Development
Fostering Organizations thatare Diverse and Dynamic
Achieving a Healthy andWorker-friendly Workplace
Environment

Achieving Sustainable
Value Chains
Promotion of Sustainable
Raw Material Procurement
Promotion of CSR Supply

Strategy

In the process of identifying the risks and opportunities of climate change, Morinaga
established the 4℃, 2℃,and 1.5℃ scenarios for its domestic food manufacturingbusiness. Based on the information released by the Intergovernmental Panel on Climate
Change (IPCC) and International Energy Agency (IEA), we use these scenarios toChain Management

analyze the impacts in Japan in 2030 and 2050. As a result, the 4℃ scenario identified
the risks of a reduction in quality of agricultural produce, changes in yield caused bychanges in weather patterns, and increasing frequency of extreme weather events. The
2℃ and 1.5℃ scenarios found that rising costs due to stricter energy conservation policy
and carbon taxes will have a larger impact on business operations. In response to these

Reductionrisks, we will strive to reduce our own CO₂ emissions and address the risks andopportunities that are important.

Reduction of Food Loss and
Waste
Promotion of Waste
Co-existence and coprosperity with local
communities

Conserving the Global
The Morinaga Group established the Total Risk Management Committee, which is led by

Risk
Management

the President and Representative Director. This committee identifies the risks, evaluates
the severity, and implements countermeasures against these risks, which manage andaddress them appropriately. Climate change risks are managed and addressed
appropriately as management risks by the same committee. The TCFD Subcommittee
under the ESG Committee conducts reviews on climate change following the TCFD
recommendations, with the results discussed by the ESG Committee. The details of
discussions held by both committees are reported to the Board of Directors, which
oversees the progress of risk management.
To mitigate climate change risks, the Morinaga Group has established targets to reduce
CO₂ emissions (Scope 1 and 2) by 30% from FY2019/3 in Japan by 2030 and to achieve
net-zero GHG emissions by 2050. We are actively improving energy efficiency at our
production sites (preventing air leaks, adding insulation, etc.), by upgrading our
infrastructure and utilizing new and efficient equipment, thus highlighting our shift away

Environment
Response to Climate
Change Issues
Information Disclosure
Following the TCFD
Recommendations
Promotion of Environmental
Consideration in Containers
and Packaging
Effective Use of Water
Resources
Biodiversity
Management ofEnvironmental Pollutantsfrom fossil fuel. At the same time, we are considering the introduction of renewableenergy and implementing measures to achieve these targets.

Strengthening theBusiness Management
Foundation
Build a Highly Transparent
and Efficient GovernanceIndicatorsand targets

SystemHuman Rights Management
Participation in Initiatives
Indices and Awards

Sustainability Policies& Guidelines
Integrated Report*1 The TCFD Subcommittee was renamed the TCFD/TNFD Subcommittee in FY2023/3.

ESG Data
GRI Standards

Scenario Analysis
We established the 4℃, 2℃ and 1.5℃ scenarios for Morinaga & Co., Ltd.’s domestic food manufacturing businessto analyze the impacts in 2030 and 2050.
We referenced scenarios of government institutions and research institutes for the identification and evaluations ofclimate change risks and opportunities and for the analysis of the impact on the Morinaga Group’s business,strategies and financial standing caused by these risks and opportunities.
*Referenced scenarios, etc.
4℃

2℃

1.5℃

Stated Policy Scenario (STEPS)（IEA、2020年）
Representative Concentration Pathways (RCP6.0, 8.5)（IPCC、2014年）
Sustainable Development Scenario (SDS)（IEA、2020年）
Representative Concentration Pathways (RCP2.6)（IPCC、2014年）
Net Zero Emission by 2050 case (NZE2050)（IEA、2021年）
Representative Concentration Pathways (RCP1.9)（IPCC、2021年）

Sustainable Finance
IR LibraryMorinaga Group’s Important Risks

Category

Transition
risks

Subcategory

Risk
factors

Impact on
operations

Importa

Policyandregulation

Spread ofGHGemissions

Rising energy
costs and logisticalcosts caused byMediumpricing andstricterGHG

the introduction ofcarbon taxes

Response

nce• Consider and implement
ways to reduce CO₂
emissions by 30%*1 by2030 and to achieve netzero GHG emissions by
2050*2• Promote visualization ofemissions
reportingobligations

CO₂ emissions atfactories, implement

energy conservation
measures, and establish

Stricterenergyconservatio

Rising cost ofcapital investment
for manufacturingn policy

facilities due to thecompany’s
response toLargehighly efficient production
system throughreorganization• Consider use ofrenewable energy• Establish more efficientlogistics system/transportand deliveries with fewer
environmental impacts(improve loading rateusing modal shift and jointenergyconservationdeliveries with othercompanies, design

driven by stricter
energyconservation policy

product specifications forhigh loading rates, andintroduce demand
forecasting using AI for
optimal inventory
allocation and upgrade
supply operations, etc.)

Decarboniz
ationrelated
mandates

Rising packaging
costs due toregulations on theuse of plastics

andregulations

derived frompetroleum

Large

procurement inconsideration of theenvironment in line with
Procurement Policy andSupplier Guidelines• Promote initiatives aimed

on existingproducts
andservices
Markets

Changes in
consumer
behavior• Promote raw materials

at a 25% reduction inplastics usage for in Jelly
products by 2030*3• Expand the use of
Increased
environmental
awareness among
consumers leads
to a decline insales due toconsumer
defection fromproducts that havebeen slow to
respond to theenvironment and adecrease in the
adoption of suchproducts byretailersLargebiomass plastics• Promote initiatives aimed

at 100% sustainableprocurement of cacao
beans, palm oil and paperby 2030*4

Physical
risks

Acute

Chronic

Risingseverity
andweather,such ascyclonesandflooding

Loss ofopportunities anddecrease in sales
procurement,
production,
logistics, and sales
activities causedby damage tofactories,
warehouses, andemployees due toextreme weather,disruption oflogistics, etc.

MediumChanges inrainfall

Rising raw material
and development

Largepatterns

costs due to poor

andextremecrop quality andreduced yieldchanges inweatherpatterns

caused bychanges inweather patterns• Continuously review BCP
for natural disasters andpromote BCM
time of manufacturingbase relocation or new
establishment based on
hazard map• Decentralize

manufacturing bases ofmainstay products• Purchase raw materials

from multiple suppliers (ormultiple sites)

and frequent
occurrences ofextreme weather• Promote raw materials

procurement inconsideration of theenvironment in line with

Procurement Policy andSupplier Guidelines• Promote initiatives aimed
at 100% sustainableprocurement of cacao
beans, palm oil and paperby 2030*4• Purchase raw materials

from multiple suppliers (ormultiple sites)• Strengthen collaboration
with suppliers andincrease communication
aimed at risk response• Consider shifting milkingredients to plant-basedmaterials*1 Scope 1 and 2 (domestic Group consolidated basis; compared to FY2019/3)*2 Group consolidated basis*3 Target: usage of plastics in packaging materials (intensity, compared to FY2020/3, including shift to biomass plastics)*4 Group consolidated basis; paper covers product packaging

Morinaga Group’s Important Opportunities
Category

Opportunity
factors

Impact on
operations

Importance

Resource
efficiency

Development and use of
efficientproduction
anddistribution
processes

Declining
manufacturing andtransport costs due todevelopment ofefficient
manufacturing anddistribution processes

Large

Response• Promote efficient production

activities by rebuilding the
production system and creating
smart factories*5• Promote initiatives aimed at 70%
reduction in food loss and waste
by 2030*6• Establish more efficient logistics

system/transport and deliveries
with fewer environmental impacts

Products
andservices

Changes in
consumerpreferences

Rising demand for
eco-friendly products
amid increasing
environmental

Large• Implement “One Chocolate for
One Smile” campaign*7• Develop eco-friendly products

awareness among
consumers including
Generation Z

Resilience

Adaptation

Rising demand for in

to climate

Jelly and frozen
desserts due to global
warming

Substitution/
Diversificatio

Increasing capacity ofoperations undern ofresources

various conditions
from review ofsubstitution/diversifica

Medium• Increase sales of in Jelly andfrozen desserts

Large• Consider substitution anddiversification of raw materials
based on climate change risks

tion of raw materials
Increased trust in
supply chain andfewer opportunity loss
due to formulation of

Large• Continuously review BCP for

natural disasters and promote
BCM

resilience plan (BCP)*5 Smart factory: Using IoT and AI technologies to upgrading technologies with utilizing digital data of production equipment toensure stable operations and increase production efficiency.
*6 Scope: Food loss and waste occurring from receipt of raw materials to delivery (distribution) (domestic consolidated basis;
intensity; compared to FY2020/3). Food loss and waste is defined as food waste that is disposed of thorough incineration or
landfill, excluding food waste recycled into fertilizer or feed, etc.
*7 “One Chocolate for One Smile” campaign: Donates one yen for every purchase of applicable products during the campaign period
to support children in cacao-producing countries.

Going forward, we will also consider deepening our response and expanding the scope of our scenario analysis.

Basic Approach to Initiatives and ProgressMateriality “Conserving the Global Environment” (Morinaga Group Environmental Policy, Promotion System,
Environmental Management System, List of ISO 14001-accredited Facilities)
Response to Climate Change Issues (Medium- to Long-Term Targets, Main Initiatives Aimed at Reducing
Greenhouse Gas Emissions, Initiatives for Energy Saving, etc.)
Promotion of Environmental Consideration in Containers and Packaging (Long-Term Targets, Environmental
Initiatives in the Containers and Packaging of Major Brands, etc.)
Promotion of Sustainable Raw Material Procurement (Medium- to Long-Term Targets, Initiatives for Cacao
Beans, Palm Oil and Paper, etc.)
Reduction of Food Loss and Waste (Long-Term Targets, Cooperation and Joint Efforts with Others to Reduce
Food Loss and Waste)
One Chocolate for One SmileHome > Sustainability at Morinaga Group > Conserving the Global Environment > Promotion of Environmental Consideration in Containers and Packaging

Promotion of Environmental Consideration in
Containers and Packaging
Basic Stance

Reduction of the Plastics: Long-TermTargets

Environmental Initiatives in the Containers
and Packaging of Major Brands

Sustainability at
Morinaga Group
Sustainability
Management
Sustainability Advisory
Board

Basic Stance

Identifying theMateriality
Owing to the variety and wideness of its product range, the Morinaga Group uses packaging materials made ofdiversified materials. It also uses packing materials for the storage and transportation purposes.

Stakeholder

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

Engagement

such as plastic issues, deforestation, and climate change.
As one such initiative, we have newly established a long-term reduction target for the volume of plastic used in the
packaging material of our mainstay product in Jelly. With efforts to meet this target as our reference point, we will
pursue environmental conservation towards the establishment of a recycling society.

Contributions to Healthy
Lives of People around
the World
Contribute to “Health ofMind, Body, andReduction of the Plastics: Long-Term Targets

Environment”
Corporate Citizenship
Provision of Safe andReliable Products

Goal for 2030

Diversity and Inclusion*1*2

Reduce the plastics used in in Jelly products by 25%

of People
Human Resource
Development*1 Scope: Amount of plastics used in packaging materials*2 intensity; compared to FY2020/3; including replacement with biomass plastics

Fostering Organizations thatare Diverse and Dynamic
Achieving a Healthy andWorker-friendly Workplace

Environmental Initiatives in the Containers andPackaging of Major Brands

Environment

Achieving Sustainable
Value Chains
Promotion of Sustainable
Raw Material Procurement

Initiatives

Current initiatives (includes tentative items)

Reduce weight and volume ofplastic

Reduce the amount of plastic used in the packaging of products
including in Jelly and Choco Monaka Jumbo.

Switch to eco-friendly materials
for packaging

Switch plastic package of HI-CHEW and in Jelly to biomass-derived
plastic packaging.

Promote recycling

Launched in Jelly Recycling Program in September 2021

Promotion of CSR Supply
Chain Management
Reduction of Food Loss and
Waste
Promotion of Waste
Reduction

Co-existence and coprosperity with local

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

communities

Conserving the Global
Environment
Response to Climate
Change Issues

In addition, we partly replaced the printing ink used in the product with plant-derived, environmentally-friendly

Information Disclosure

biomass ink. At the same time, we adopted easier-to-open caps to improve customer convenience.

Following the TCFD
Recommendations
Promotion of Environmental
Consideration in Containers
and Packaging
Effective Use of Water
Resources
Biodiversity
Management ofEnvironmental Pollutants

Strengthening theBusiness Management
Foundation
Build a Highly Transparent
and Efficient Governance
SystemHuman Rights Management
Participation in Initiatives
Indices and Awards

Sustainability Policies& Guidelines

Initiatives for reducing plastic waste: in Jelly Recycling Program
To further reduce plastic waste, Morinaga and TerraCycle Japan G.K. launched a recycling program to collectempty jelly drink containers in September 2021. The program works to collect used containers and recycle theminto new plastic products as resources. We will continue to promote recycling initiatives for in Jelly as a leading
jelly drink brand.

Integrated Report
ESG Data
GRI Standards
Sustainable Finance
IR Library

The collection box and students of Koriyama High School in Fukushima Prefecture

Efforts For The Use Of Sustainable Paper(for product packaging)
Procurement of Sustainable Raw Material: Paper (for Packaging Product)
ESG Data: Sustainable Raw Material Ratio, etc.

Home > Sustainability at Morinaga Group > Conserving the Global Environment > Effective Use of Water Resources

Effective Use of Water Resources
Basic StanceIn recent years, natural disasters, such as droughts and floods, are frequently occurring as a result of climatechange. There are regions with increasing risks of water resource shortages as the world population increases.

Sustainability at
Morinaga Group
Sustainability
Management

We believe that water resources are essential to our Group's business activities, and it is important to promote

Sustainability Advisorybusiness activities that effectively assess water stress* and utilize water resources. Our Group is working to reduceBoard

the use of water resources by recycling cooling water for equipment and reducing raw materials waste, including
water used for preparations.

Identifying theWe will identify regions facing high water stress and consider possible actions by conducting water withdrawal

Materiality

surveys and evaluating our domestic and overseas production facilities for water stress using the World Resources
Institute's Aqueduct Water Risk Atlas with the aim of effectively using water resources.

Stakeholder
Engagement* Water stress: A state in which water supply and demand is tight. Water stress is when maximum available water resources per
capita falls below 1,700 ㎥.

Contributions to Healthy
Lives of People around
the World
Contribute to “Health ofMind, Body, andEnvironment”
Corporate Citizenship
Provision of Safe andReliable Products

Diversity and Inclusionof People
Human Resource
Development
Fostering Organizations thatare Diverse and Dynamic
Achieving a Healthy andWorker-friendly Workplace
Environment* Domestic figures reflect Group consolidated figures. Overseas figures reflect figures at production sites. The domestic Group
consolidated figure for FY2021/3 and later is third-party assured by LRQA.

ESG Data: Details of the Water Resources Consumption
Third Party Guarantee

Achieving Sustainable
Value Chains
Promotion of Sustainable
Raw Material Procurement
Promotion of CSR Supply
Chain Management
Reduction of Food Loss and
Waste
Promotion of Waste
Reduction
Co-existence and coprosperity with local
communities

Conserving the Global
Environment
Response to Climate
Change Issues
Information Disclosure
Following the TCFD
Recommendations
Promotion of Environmental
Consideration in Containers
and Packaging
Effective Use of Water
Resources
Biodiversity* Scope: Four factories of Morinaga & Co., Ltd. (Yokohama, Kanagawa; Oyama, Tochigi; Mishima, Shizuoka; Anjo, Aichi), four
affiliated production companies (Takasaki, Gunma; Yamato, Kanagawa; Tosu, Saga; Amagasaki, Hyogo), and three overseas

Management ofEnvironmental Pollutants

production sites (North Carolina, USA; Taipei, Taiwan; Zhejiang, China.)

Strengthening theBusiness Management
Foundation
Build a Highly Transparent
and Efficient Governance
SystemHuman Rights Management
Participation in Initiatives
Indices and Awards

Sustainability Policies& Guidelines
Integrated Report
ESG Data
GRI Standards
Sustainable Finance
IR LibraryHome > Sustainability at Morinaga Group > Conserving the Global Environment > Biodiversity

Biodiversity
Basic StanceFor conserving biodiversity, we ensure we ensure the conservation of biodiversity and the protection of
ecosystems.

Sustainability at
Morinaga Group
Sustainability
Management
Sustainability Advisory

Biodiversity Conservation Initiatives

Board

Identifying the

Formulation of Morinaga Group Procurement Policy
In accordance with the Morinaga Group Procurement Policy, we are committed to the conservation of biodiversity
and engaged in our procurement activities focusing on the raw materials that are considerate of the global
environment.
Procurement Policy

Materiality
Stakeholder
Engagement
Contributions to Healthy
Lives of People around
the World
Contribute to “Health ofMind, Body, andMembership 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.
Procurement of Sustainable Raw Material: Palm Oil

Environment”
Corporate Citizenship
Provision of Safe andReliable Products

Diversity and Inclusionof People
Human Resource

Use of FSC®-certified paper

Development
Fostering Organizations thatare Diverse and Dynamic

We aim to promote the shift to FSC®-certified paper sourced from well-managed forests and other sources andAchieving a Healthy andexpand the scope of its use in sequence.

Worker-friendly Workplace
Environment

Procurement of Sustainable Raw Material: Paper (for Packaging Product)
ESG Data: Sustainable Raw Material Ratio, etc

Achieving Sustainable
Value Chains
Promotion of Sustainable

Sustainable cacao beans

Raw Material Procurement
Promotion of CSR Supply
Chain Management

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

Reduction of Food Loss and
Waste

Procurement of Sustainable Raw Material: Cacao Beans

Promotion of Waste
Reduction
Co-existence and coprosperity with local
communities

Conserving the Global
Environment
Response to Climate
Change Issues
Information Disclosure
Following the TCFD
Recommendations
Promotion of Environmental
Consideration in Containers
and Packaging
Effective Use of Water
Resources
Biodiversity
Management ofEnvironmental Pollutants

Strengthening theBusiness Management
Foundation
Build a Highly Transparent
and Efficient Governance
SystemHuman Rights Management
Participation in Initiatives
Indices and Awards

Sustainability Policies& Guidelines
Integrated Report
ESG Data
GRI Standards
Sustainable Finance
IR LibraryHome > Sustainability at Morinaga Group > Strengthening the Business Management Foundation >Strengthening the Business Management
Foundation
We will enhance our sustainability as a corporation as well as achieving sustainable growth and enhancing

Sustainability at

corporate value.

Morinaga Group
Sustainability

Materiality
Strengthen the Business Management Foundation

Main challenges included in materiality
1. Strengthen corporate governance
2. Globalize management foundation (strengthen base for overseas expansion and respect local
cultures, etc.)
3. Human rights management

Management
Sustainability Advisory
Board

Identifying theMateriality
Stakeholder
Engagement

4. Address next-generation food technologies (nextgeneration food services, DX and robotics, etc.)

Contributions to Healthy

5. Increase social trust and reputation through disclosure of ESG information

Lives of People around
the World

Main expected opportunities and risks

Contribute to “Health ofMind, Body, and<opportunities>

・Increasing management efficiency and corporate value・Acquiring trust from countries and regions where we operate
・Increasing ability to promote and implement management strategy
・Improving productivity
・Growing business opportunities from innovation
・Increasing social trust and corporate value<risks>・Declining evaluations from capital markets
・Damage to social trust, brand value and corporate value
Main Actions Ahead of 2030
1. Build a highly transparent and efficient governance system

Environment”
Corporate Citizenship
Provision of Safe andReliable Products

Diversity and Inclusionof People
Human Resource
Development
Fostering Organizations thatare Diverse and Dynamic
Achieving a Healthy andWorker-friendly Workplace
Environment

2. Promote globalization of management foundation
3. Reinforce human rights management

Achieving Sustainable

4. Evolve business operations using DX

Value Chains

5. Increase ESG information disclosures

Promotion of Sustainable
Raw Material Procurement

Response to SDGs

Promotion of CSR Supply
Chain Management
Reduction of Food Loss and
Waste
Promotion of Waste
Reduction

Basic StanceCo-existence and coprosperity with local

To achieve our Purpose and the 2030 Vision, we will need to enhance our sustainability as a corporation, respondcommunities

quickly and appropriately to changes in the external environment, and flexibly engage in business operations. The
Morinaga Group will steadily work on initiatives for the following five themes through monitoring by theConserving the Global

management meeting and ESG Committee.

Environment
Response to Climate
Change Issues

Action Themes

Information Disclosure

We will achieve effective corporate governance that is highly
1.Achieve highly transparent
and efficient governancetransparent and efficient based on Japan's Corporate Governance
Code in order to respond appropriately to changes in society as well as
achieving sustainable growth and enhancing corporate value

Following the TCFD
Recommendations
Promotion of Environmental
Consideration in Containers
and Packaging

2.Globalize managementfoundation

3.Establish human rights
management

We will support the growth of our overseas business by building afoundation for corporate activities based on the unique situation in the
countries and regions where we operate.
We will build a global human rights management system based on the
UN Guiding Principles on Business and Human Rights in response to
rapidly increasing international request for respect of human rights.

Effective Use of Water
Resources
Biodiversity
Management ofEnvironmental Pollutants

Strengthening the
4.Promote business
operations using DX

5.Expand disclosures of ESG
information

We will promote company-wide and cross-functional DX aimed atincreasing the Group's productivity, strengthening the managementfoundation, and creating new business in response to the rapid
advancement in digitalization.
We will enhance our disclosure of ESG information in order to obtainappropriate evaluation from the market and in response to the requests
for non-financial information disclosure from the capital markets.

Business Management
Foundation
Build a Highly Transparent
and Efficient Governance
SystemHuman Rights Management
Participation in Initiatives
Indices and Awards

Sustainability Policies& Guidelines
Integrated Report
ESG Data
GRI Standards
Sustainable Finance
IR Library

Related information
ESG Data

Home > IR Information > Corporate GovernanceCorporate GovernanceCorporate GovernanceCompliance

Risk Management

Human Rights Management

Contact Us

Investor Relations

Corporate Governance Basic Policy

Management Policy
Message from the President

The Morinaga Group will enhance its corporate governance with the aim of maximizing corporate value andachieving enduring corporate growth based on the basic policies of improving the health and efficiency ofmanagement, 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
stakeholders.

Exective Management
2030 Business Plan/2021
Medium-Term Business Plan
2030 Business Plan
2021 Medium-TermBusiness Plan
Medium- and Long-Term(1) Positioning of Stakeholders

Financial Strategy

To enable us to fulfill our social responsibility in all areas of our business activities, we are committed to

Value Creation Process

maintaining and further developing strong relationships with all stakeholders, who sustain our company, andCorporate Governanceachieving coexistence with society and sustainable growth in accordance with corporate principles and the code of
conduct.

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Compliance
Risk Management
Human Rights(2) Management Monitoring Functions

Management
Disclosure Policy

We are committed to building an effective internal control system by strengthening the management monitoring
functions of the Board of Directors, appointing outside Directors and Statutory Auditors, requiring attendance byStanding Statutory Auditors at important meetings, and placing the Audit Division under the direct control of the
President.

Financial/Performance
Financial/Performance
Highlights
Highlights by Segment(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

IR Library

member companies.

Financial Results
Presentations

Corporate Governance System

IR DayTimely Disclosure
Integrated ReportManagement of Corporate Affairs

ESG Data

Morinaga’s “Rules on Decision-Making Criteria” states clear definitions of authority and responsibility for respective
decision-making units, including the Board of Directors, Business Execution Meetings, Directors, Executive
Officers, and General Managers of individual divisions and departments.

IR News
IR Calendar
Share-relatedInformation
Stock information

General Meeting of
Shareholders
Dividends & Shareholder
ReturnBonds and Rating
Analyst Coverage
Articles of Incorporation

To Our Investors
About MORINAGA
Message from the
President
OUR PHILOSOPHY
Corporate Development
and History
Introduction of Business
FieldsTo those considering
investing in MORINAGA
2030 Business Plan/2021
Medium-Term Business
Plan
Financial/Performance
Highlights
Share-related Information
MORINAGA’s initiatives
Research andDevelopment
Sustainability at Morinaga＜Board of Directors＞

Group
Data

The Board of Directors deliberately makes decisions on statutory matters and the execution of important business

Financial Results

based on the business judgment principle and supervises the execution of business. The Board consists of eleven

Presentations

Directors, out of which four are Outside Directors, eight are male, and three are female Directors.

Integrated Report
ESG Data
Corporate Profile

Sustainability＜Business Execution Meetings＞
Business Execution Meetings, which is mainly comprised of Directors,Senior Operating Officer and Standing
Statutory Auditors, deliberates and makes decisions on important management themes and other matters forwhich authority is delegated by the Board of Directors. To ensure the effectiveness and efficiency of deliberations
at the Board of Directors and Business Execution Meetings, sufficient prior discussions are made at various
committees that serve as advisory bodies for the Boards. These committees include the IR Committee, which isconcerned with information disclosure, and the Officer Appointment and Remuneration Advisory Committee, aforum 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.

＜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 three of Statutory Auditors are male and one is female. In accordancewith the Guidelines for Auditors, Statutory Auditors audit the Directors’ performance of their duties based on theRules on Statutory Auditors’ Audit. Standing Statutory Auditors hold regular meetings with the Representative
Director and attend Board of Directors, Business Execution Meetings of the Board of Directors and other importantgatherings 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 six 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 neededbasis 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 of the Internal Control Steering Committee, which is composed of members
selected from major divisions and departments, and exchange opinions with the Committee members on a regularbasis. Furthermore, the Audit Division enhances the effectiveness of internal audits by reporting directly not only to
Representative Director, but also to the Board of Directors and the Board of Statutory Auditors, as necessary andappropriate. Morinaga appointed Deloitte Touche Tohmatsu LLC as its accounting auditor.

＜Explanation of director and statutory auditor skills matrix＞
We have created skills matrices for the core skills of each director and statutory auditor, as well as the knowledge,
experience, abilities, etc. required of the Board of Directors as a whole in order for us to put our corporate
philosophy into practice and achieve the aims of our business plans.

Exective Management＜Executive Appointment Policy＞
An overview of the Executive Appointment Policy is as follows.
1. In order to realize the purpose and vision of the Morinaga Group, Directors and Statutory Auditors of theCompany shall be persons with specialties and experience in the necessary fields, taking into consideration
diversity such as nationality, gender and age.

2. Executive Directors shall meet the “Morinaga Group Management Personnel Requirements” (persons who
demonstrate basic qualities, popularity, leadership, challenging spirit, foresight and imagination, practicalability, and the utilization of new technologies and new fields), and shall be persons who can contribute to thesustainable growth of the Group.
3. Outside Directors shall meet the Company’s Independence Standards stipulated separately, and shall bepersons who can be expected to provide appropriate opinions and raise questions about the Group’s
management issues, etc. from an independent and objective standpoint.
4. Statutory Auditors shall be persons who can be expected to conduct accurate audits from an objective andneutral perspective utilizing their knowledge and experience regarding the legality and appropriateness ofbusiness execution. At least one Statutory Auditor shall have sufficient knowledge of financing and accounting,and Outside Statutory Auditors shall be persons who meet the Company’s Independence Standards.

＜Morinaga Group Executive Independence Standards＞
The Company shall determine that Outside Directors, Outside Statutory Auditors, and candidates thereof are
independent provided that they do not fall under any of the following categories.
1. A person for whom the Group is a major business partner, or a business executive thereof Specifically, aperson, or a corporation to which said person belongs, for whom net sales to the Group in the most recent
fiscal year account for 2% or more of the annual consolidated net sales of the Group
2. A major business partner of the Group, or a business executive thereof Specifically, a person, or a corporation
to which said person belongs, to whom net sales by the Group in the most recent fiscal year account for 2% ormore of the annual consolidated net sales of the Company
3. A consultant or accounting or legal professional who receives a large amount of money or other property fromthe Company other than executive remuneration, or a member of a corporation or organization, etc. thatreceives such property A large amount of property refers to an amount equal to or more than 2% of the annual
consolidated net sales of said corporation, etc. in the most recent fiscal year, or \10 million, whichever ishigher.
4. A person who falls under categories 1. to 3. in the past year
5. A person who was a business executive of the Company or a subsidiary of the Company at the time of their
appointment and for a period of 10 years prior to their appointment
6. A relative within the second degree of kinship of any person described in 1. to 5. above.
7. A person who is in conflict with the independence criteria stipulated by the Tokyo Stock Exchange, or a person
who may cause a conflict of interest with the shareholders of the Company
8. A person whose term of office is more than 8 years in total

Main Topics of Discussion at the Board of Directors
In FY2023/3, the Board of Directors discussed the following matters as main topics.

Topics• Progress of the business plan
• Progress in Focus Domains (ｉｎ and Frozen Desserts) and BasicManagement strategy andsustainability-related

Governance-related

Compliance and risk
management-related

Domain (Confectionery and Foodstuffs)• Status of the U.S. Business• Smart factory initiatives• Initiatives related to intellectual property strategy and R&D• Activities of the ESG Committee and Other Committees• Evaluation of the effectiveness of the Board of Directors• Conflict of Interest Transactions• Holding status of Cross-shareholdings• Executive personnel and officer remuneration• Group company governance• Activities of the Compliance Committee• Activities of the Total Risk Management Committee• Whistleblower system• Measures against unauthorized access and the information
management system• Operation of the internal control system• Aceivities of the Compliance Committee and the Total Risk
Management Committee• Changes in accounting policies (translation of revenue andexpenses of foreign subsidiaries)
Finance, investment, and loanrelated• Execution of financial measures (fundraising, fund management,
and shareholder returns)• Status of updating of production facilities• Status of renewal of systems• New Shibaura Building construction plans

Basic Policy on Officer Remuneration and Compositionof Officer Remuneration
1. Executive Remuneration Basic Policy
The Company’s Executive Remuneration Basic Policy is as follows.
1)

Contribute to the realization of the purpose and vision of the Morinaga Group.

2)

Promote the realization of medium- to long-term business plans in order to enhance corporate value into

the future.
3)

Establish a system and standards that support appropriate risk-taking by Directors and strengthen theirmotivation to contribute.
4)

Ensure that the system is transparent, fair, and rational for stakeholders, and is determined through anappropriate process to ensure this.

2. Content of Executive Remuneration System
1)

Composition and content of remuneration, etc.
a.

Directors(i)

Basic compensation: Consists of two types: fixed remuneration (equivalent to 70%) andperformance-based remuneration (equivalent to 30%) and is a fixed amount paid monthly in cash.

ⅲ

10% of basic compensation is paid as “( ). Stock compensation (non-monetary remuneration).
(ii)

Executive bonuses: Paid in cash in a lump sum in July subject to a resolution of the General Meetingof Shareholdersⅲ Stock compensation (non-monetary remuneration): Stock compensation is paid when Directors( )retire(excluding non-residents of Japan) Details are provided in “5) Content of non-monetary
remuneration.”b.

Outside Directors and Statutory Auditors

In view of the roles of Outside Directors and Statutory Auditors, basic compensation consists of fixed
remuneration only and is a fixed amount paid monthly in cash.
2)

Policy on determination of basic compensation

A standard amount is determined for each job title according to responsibilities. The standard amount is set at alevel that ensures market competitiveness and strengthens the motivation of each Director to make acontribution.

3)

Policy on determination of executive bonuses

Executive bonuses are monetary remuneration according to job title, responsibilities, performance, etc., andtheir payment is determined following the resolution by the General Meeting of Shareholders.
4)

Matters concerning performance-linked remuneration

The performance indicators for performance-linked remuneration for the President are “the Group’s
consolidated operating income and ROE,” and for Executive Directors other than the President, are as follows:“15% of the 30% performance-linked remuneration included in basic compensation is based on the Group’s
consolidated operating income and ROE, and the remaining 15% is based on individuals’ performance
evaluations, including contributions to ESG initiatives.”
5)

Content of non-monetary remuneration

As non-monetary remuneration, Executive Directors are provided stock compensation equivalent to 10% of theamount of basic compensation for the purpose of motivating them to make contributions to an improvement of
medium- to long-term performance and corporate value, and sharing profit awareness with shareholders.
Based on the performance-linked stock compensation plan approved at the 170th General Meeting of
Shareholders, Executive Directors receive points equivalent to 10% of their post-performance-linked basic
compensation each year, and receive Company shares, etc. through the BIP trust, in proportion to the points
accumulated, when they retire.

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 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 General Meeting of Shareholders
was 11, including two Outside Directors.) In addition, at the 175th Annual General Meeting of Shareholders heldon June 29, 2023, it was resolved to increase the number of Outside Directors in order to strengthen corporate
governance. It was also resolved to increase the maximum amount of remuneration for Outside Directors to 80
million yen per annum in consideration of the expansion in the roles and responsibilities expected of the Outside
Directors. (The number of Outside Directors immediately following the conclusion of the said General Meetingof Shareholders was 4)
Moreover, separately from the said monetary remuneration, at the 170th Annual General Meeting of
Shareholders held on June 28, 2018, the introduction of a performance-linked stock compensation plan using atrust for Directors (excluding Outside Directors and non-residents of Japan) was approved. The maximum
amount of cash to be contributed by the Company to the trust for each target period covering three fiscal years
was resolved to be \180 million in total, and the maximum number of points to be awarded as stockcompensation was resolved to be 15,000 points for one fiscal year. The number of Directors (excluding Outside
Directors and non-residents of Japan) at the conclusion of the said General Meeting of Shareholders was 8.
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 per annum. The number of Statutory Auditors
at the conclusion of the said General Meeting of Shareholders was 4.

4. Policy on Determination of Remuneration for Individual Directors
Summary of the Determination Policy
1)

Amount of remuneration for individual Directorsa.

The level of basic compensation is verified by the Officer Appointment and Remuneration Advisory

Committee based on the Company’s financial performance, taking into consideration the remuneration level,
etc. of peer companies or those of similar size as the Group.
b.

The Officer Appointment and Remuneration Advisory Committee determines individual amounts ofremuneration after discussing the draft on individual amounts of remuneration, including performance
evaluations, prepared by the President, and reports the determination process to the Board of Directors.
2)

Executive bonusesa. Following consultation with the Board of Directors, the Officer Appointment and Remuneration
Advisory Committee deliberates on whether it is appropriate to submit the payment of executive bonuses
to the Annual General Meeting of Shareholders. If deemed appropriate, the Committee recommends it to
the Board of Directors together with the proposed payment amount, and the Board of Directors makes adecision.
b. Payment is subject to approval of the total amount by the General Meeting of Shareholders.

5. Matters concerning delegation of authority concerning determination of remuneration for
individual Directors
At the meeting of the Board of Directors held on March 23, 2023, it was resolved to delegate to the Officer
Appointment and Remuneration Advisory Committee, which consists of all the Company’s Outside Directors
and the President, the authority to determine details of remuneration for individual Directors. The reason for thedelegation is to ensure objectivity and fairness in determining the amount of remuneration for individual
Directors. The Officer Appointment and Remuneration Advisory Committee makes its determination after
deliberating the proposal on the amount of remuneration for individual Directors prepared by the President,
including performance evaluations, and reports the determination process to the Board of Directors.
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 Advisory Committee and receiving its recommendations.

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 athird-party organization (law firm), in order to provide an expert and objective opinion, and the evaluation of theBoard of Directors was discussed and decided at a meeting of the Board of Directors, with reference to this thirdparty analysis and evaluation.

（2）Result of the evaluation
As a result of analysis and evaluation by a third-party organization (law firm), the Company’s Board of Directors
was determined to be functioning effectively in fiscal 2022. Based on this evaluation, the Company recognized thatthe 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
Based on the evaluation of the effectiveness of the Board of Directors in fiscal 2022, the Company recognizes thatcertain improvements have been made with respect to the issues identified in the previous fiscal year's evaluationof the effectiveness of the Board of Directors: (a) the further enhancement of discussions on risk management;and (b) strengthening the functions of the Board of Directors as a monitoring Board.

（4）Initiatives for the future
The Company will place particular emphasis in working on:ⅰⅱ) further enhancing discussions relating to medium- to long-term management issues, including sustainability( ) deepening discussions and initiatives on risk management, including at Group companies; and(and medium-term management plans, as future issues.
Based on this effectiveness evaluation of the Board of Directors, we will further improve the effectiveness of theBoard of Directors of the Company, and further strengthen corporate governance, including by taking thenecessary initiatives to improve the above issues.

Changes in Our Response to the Corporate Governance
CodeInternal 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 > IR Information > Human Rights Management

Human Rights Management
Corporate GovernanceCompliance

Risk Management

Human Rights Management

Contact Us

Investor Relations

Basic StanceManagement Policy
Message from the President

Companies must implement management that respects the human rights of stakeholders within the company andin the value chain pursuant to the UN Guiding Principles on Business and Human Rights.
We established the Morinaga Group Human Rights Policy in 2018, which requires that we respect basic humanrights and have workplaces that are free of discrimination and harassment. It also requires that we eliminate child

Exective Management
2030 Business Plan/2021
Medium-Term Business Plan
2030 Business Plan
2021 Medium-Termlabor and forced labor in the supply chain of raw materials procurement partners. In addition to applying this policy

Business Plan

to all employees and directors of our group, we also ask all of our business partners, including suppliers, toMedium- and Long-Termunderstand this policy and to work together to respect human rights. Through collaboration and cooperation, weFinancial Strategy

aim to build a responsible value chain.
Human Rights Policy

Human Rights Management System
We have established the Morinaga Group Code of Conduct and Standards of Behavior, the Morinaga Group
Human Rights Policy and the Morinaga Group Supplier Guideline. We are working to share our philosophy on

Value Creation Process

PDF

Corporate GovernanceCompliance
Risk Management
Human Rights
Management
Disclosure Policy

human rights defined in these policies through compliance training sessions for all employees and supplier
briefings. We have a system in place to discuss the Group’s response at both committees indicated on the right in

Financial/Performancecase of concerns about possible human rights infringements. If such concerns arise within the Group or if a

Financial/Performancecomplaint is made to the Helpline, we will report to the Compliance Committee. If these concerns arise outside theHighlights

company or are made to the JaCER ”Engagement and Remedy Platform”, an external reporting system, theHighlights by Segment

Sustainable Management Division will summarize the information and report to the ESG Committee. Directors who
receive such reports from both committees will supervise and provide instructions for the response to the relevant

IR Librarydivisions to correct the situation.

Financial Results
Presentations
IR DayTimely Disclosure
Integrated Report
ESG Data

IR News
IR Calendar
Share-relatedInformation
Stock information

General Meeting ofReinforce Human Rights Management
The Morinaga Group respects the human rights of stakeholders within the Group and across its value chain.
The Morinaga Group Human Rights Policy established in 2018 requires that we respect human rights and provide
workplaces that are free of discrimination and harassment. It also requires that we eliminate child labor and forcedlabor in the supply chain. The Group supports initiatives to eradicate child labor and gender equality awarenessactivities in cacao-producing countries through the One Chocolate for One Smile campaign. We exchange
opinions for future initiatives while learning about local conditions from relevant NPOs and NGOs, and we deepen
understanding of human rights issues in palm oil producing regions through communication with the RSPO*. We
are also assessing and addressing human rights issues in the supply chain through our CSR procurement surveys
based on the Supplier Guideline.
* RSPO is an acronym for Roundtable on Sustainable Palm Oil, which is involved in the development and operation of thesustainable palm oil certification scheme.

Shareholders
Dividends & Shareholder
ReturnBonds and Rating
Analyst Coverage
Articles of Incorporation

To Our Investors
About MORINAGA
Message from the
President
OUR PHILOSOPHY
Corporate Development
and History
Introduction of Business

1 Chocolate for 1 Smille
RSPO

FieldsTo those considering

Consideration for Employees’ Human Rights

investing in MORINAGA
2030 Business Plan/2021
Medium-Term Business
Plan

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.
These anti-harassment traning programs led by both external and internal lawyers target all directors andemployees including general managers, heads of sites, and directors of Morinaga subsidiaries. The lectures areheld in person and through live or recorded videos online.
In addition, through periodic trainings, all employees who have direct reports confirm how to respond when theyreceive a report or communication concerning harassment.

Financial/Performance
Highlights
Share-related Information
MORINAGA’s initiatives
Research andDevelopment
Sustainability at Morinaga
Group
Data
Financial Results
Presentations

Identifying harassments through compliance survey

Integrated Report
ESG Data
Corporate Profile

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 2022: 3,730),
with the 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 directlyharassed or saw or heard of a harassing behavior in the last 12 months and in any past year, respectively.
Answers to these questions are tabulated separately so that we can have a detailed view of the Company’s levelof compliance. We also ask questions about the corporate culture that respects for workplace compliance aswell as the respondent’s view on the Company’s degree of engagement in the compliance management, in aneffort to identify our employees’ level of compliance awareness. The summary of the survey results is fed backto 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 your workplace
have an atmosphere (environment) that allows such consultation or confirmation?

Sustainability

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

Consideration for Stakeholders in the Supply Chain
Establishment of an External Reporting System
In October 2022, the Morinaga Group joined Japan Center for Engagement and Remedy on Business and Human
Rights (JaCER) as one of its inaugural members, and established an external third-party grievance platform as agrievance mechanism for various stakeholders other than employees.
The Company aims to ensure legitimacy of the process and improve the effectiveness, efficiency, objectivity, andtransparency of grievance handling by accepting grievances through "Engagement and Remedy Platform", a nonjudicial and third-party platform which is in compliance with the United Nations guiding principles on business andhuman rights.
We will make every effort to help the parties concerned by protecting the personal information of the informant,
and upon the informant's request, ensure the anonymity and confidentiality of the content of the report.

JaCER "Engagement and Remedy Platform"

Home > Sustainability at Morinaga Group > Strengthening the Business Management Foundation > Participation in Initiatives

Participation in Initiatives
Main Initiatives in which Morinaga participates

Sustainability at
Morinaga Group・UN Global Compact（UNGC）
The United Nations Global Compact asks companies to embrace, supportand enact, within their sphere of influence, a set of core values in the areasof human rights, labor standards, the environment and anti-corruption.
Morinaga Group has been signing and participating since April, 2022, andwe are summarizing and reporting on the status of progress for addressing
the ten principles of the United Nations Global Compact.
Click here for details

・The Consumer Goods Forum
Retailers and manufacturers are bringing together in the
global network of consumer goods distribution industries, andare promoting practices and standardization that are useful tothe consumer and consumer goods industry around theworld. Morinaga Group has participated since its
establishment in 2009.
Click here for details

Sustainability
Management
Sustainability Advisory
Board

Identifying theMateriality
Stakeholder
Engagement
Contributions to Healthy
Lives of People around
the World
Contribute to “Health ofMind, Body, andEnvironment”
Corporate Citizenship
Provision of Safe andReliable Products

・Task Force on Climate-related Financial
Disclosures(TCFD)

Diversity and Inclusionof People

The Financial Stability Board (FSB) created the TCFD at thebehest of the G20. The Task Force recommends thatcompanies assess the financial impact of climate changerisks and opportunities on their business and disclose theirgovernance, strategy, risk management, and indicators ,andtargets.
Morinaga Group has endorsed the TCFD recommendationsin April 2022 and has also participated in the TCFD
Consortium.

Human Resource
Development
Fostering Organizations thatare Diverse and Dynamic
Achieving a Healthy andWorker-friendly Workplace
Environment

Click here for details

Achieving Sustainable
Value Chains

・Disclosures (TNFD) ForumThe TNFD was officially launched in June 2021 with a
mission to develop framework for private companies andfinancial institutions to appropriately assess and disclose arisks and opportunities related to natural capital andbiodiversity. In August 2023, Morinaga & Co., Ltd. joined the
TNFD Forum, which is a stakeholder organization andsupports the development of the TNFD framework.
Click here for details

Promotion of Sustainable
Raw Material Procurement
Promotion of CSR Supply
Chain Management
Reduction of Food Loss and
Waste
Promotion of Waste
Reduction
Co-existence and coprosperity with local
communities

・Membership in the World Cocoa Foundation(WCF)
Conserving the Global

Morinaga Group 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 without childlabor, and provide support for cacao-producing countries
through our activities as a WCF member.

Environment
Response to Climate
Change Issues
Information Disclosure
Following the TCFD

Click here for details

Recommendations
Promotion of Environmental

・Platform for Sustainable Cocoa in Developing

Consideration in Containers

Countries

Effective Use of Water

and Packaging
Resources

Morinaga Group endorses the Action Plan to Eliminate Child
Labour in the Cocoa Industry, a cacao industry issue
promoted by Platform for Sustainable Cocoa in Developing
Countries, for which the Japan International Cooperation
Agency (JICA) serves as the secretariat. This platform is aplace where Japanese companies, non governmentalorganisations (NGO), and other organizations related to the
cacao industry collaborate to solve issues facing the industry
such as farmer poverty, deforestation, and child labor.

Biodiversity
Management ofEnvironmental Pollutants

Strengthening theBusiness Management
Foundation

Click here for details

Build a Highly Transparent
and Efficient Governance
System・Roundtable on Sustainable Palm Oil（RSPO）

Human Rights Management

RSPO is a non-profit organization to persue developing andimplementing global standards for the sustainable palm oil
economically, environmentally, and socially. Morinaga Grouphas participated since October, 2019.

Indices and Awards

Click here for details

Participation in Initiatives

Sustainability Policies& Guidelines
4-1208-19-100-00

Integrated Report

・Japan Sustainable Palm Oil Network（JaSPON）
JaSPON is a network established with retailers, consumer
goods manufacturers, and NGOs to accelerate theprocurement and consumption of sustainable palm oil in theJapanese market with the aim of addressing various issues,
including environmental and social aspects of palm oil
production. Morinaga Group has participated since October,
2019.
Click here for details

・The Green Purchasing Network (GPN)The Green Purchasing Network (GPN) is a non-profit
organization composed of the central and local governments,
businesses, and consumers. In order to promote theformation of markets for products and services with low
environmental impact and contribute to the construction of asustainable society and economy, the Network's objectives
are to disseminate the concept of, and promote the practiceof green purchasing among the central and local
governments, businesses, and consumers to provide
guidelines and information necessary for practicing green
purchasing and to promote ideas and practices of green
purchasing in Japan. Morinaga Group has participated sinceJune, 2000.
Click here for details

ESG Data
GRI Standards
Sustainable Finance
IR LibraryWhen we participate in external initiatives, it is necessary to go through an internal approval process. Even afterparticipation, we continue to check the status of our membership in external initiatives every year to manage theappropriateness of our membership.

Trade associations in which our directors hold positions
As of August 2023
All Nippon Kashi Association (ANKA) Chair :Morinaga & Co., Ltd. Representative Director, President Eijiro Ota

Strengthening the Business Management Foundation
Indices andAwardsRelated information
Sustainability at
Morinaga TOP

Home > Sustainability at Morinaga Group > Indices and Awards

Indices and Awards
Inclusion in ESG IndicesSustainability at
Morinaga Group・FTSE4Good Global Index
・FTSE Bloosom Japan Index
Morinaga & Co., Ltd. is a constituent of FTSE4Good IndexSeries and FTSE Blossom Japan Index (targeting Japanesecompanies), investment indices selected by FTSE Russell, asubsidiary of the London Stock Exchange Group, in which
companies that excel in activities for ESG (Environment,
Society, and Governance).

・MSCI ESG LEADERS
Morinaga & Co., Ltd. is a constituent of MSCI ESGLEADERS, an investment index selected by a U.S. company
MSCI, in which companies that excel in activities for ESG(Environment, Society, and Governance).*1

Sustainability
Management
Sustainability Advisory
Board

Identifying theMateriality
Stakeholder
Engagement
Contributions to Healthy
Lives of People around
the World

・The MSCI Japan Empowering Women Index
Morinaga & Co., Ltd. is a constituent of the MSCI Japan
Empowering Women Index, an index for ESG investment
selected by the Government Pension Investment Fund(GPIF).

・FTSE Blossom Sector Relative Japan Index
Morinaga & Co., Ltd is a member of the FTSE Blossom
Japan Sector Relative Index (an index that reflects theperformance of Japanese companies with excellent
environmental, social and governance measures) which is
selected by FTSE Russell, a subsidiary of the London Stock
Exchange Group.

Contribute to “Health ofMind, Body, andEnvironment”
Corporate Citizenship
Provision of Safe andReliable Products

Diversity and Inclusionof People
Human Resource
Development
Fostering Organizations thatare Diverse and Dynamic
Achieving a Healthy andWorker-friendly Workplace

・The S&P/JPX Carbon Efficient Index
Morinaga & Co., Ltd. has been a constituent of the S&P/JPX
Carbon Efficient Index, an index for ESG investment selectedby the Government Pension Investment Fund (GPIF), since
2018. The index focuses on companies' disclosure ofenvironment-related information and on their carbon
efficiency level (amount of carbon emissions per unit ofrevenue).

Environment

Achieving Sustainable
Value Chains
Promotion of Sustainable
Raw Material Procurement
Promotion of CSR Supply
Chain Management
Reduction of Food Loss and
Waste
Promotion of Waste
Reduction
Co-existence and coprosperity with local
communities

・The Sompo Sustainability Index, an index

Conserving the Global

Morinaga & Co., Ltd. has been selected to the Sompo
Sustainability Index, an index established independently by
Sompo Asset Management Co., Ltd., since 2016. About 300
companies with superior environmental, social, andgovernance performance are selected each year to theindex, which is used in the company's sustainable
investment.

Response to Climate*1 THE INCLUSION OF MORINAGA & CO., LTD. IN ANY MSCI INDEX, AND THE USE OF MSCI LOGOS, TRADEMARKS,SERVICE MARKS OR INDEX NAMES HEREIN, DO NOT CONSTITUTE A SPONSORSHIP, ENDORSEMENT OR PROMOTION
OF MORINAGA & CO., LTD. BY MSCI OR ANY OF ITS AFFILIATES. THE MSCI INDEXES ARE THE EXCLUSIVE PROPERTY

Environment
Change Issues
Information Disclosure
Following the TCFD
Recommendations
Promotion of Environmental
Consideration in Containers
and Packaging

OF MSCI. MSCI AND THE MSCI INDEX NAMES AND LOGOS ARE TRADEMARKS OR SERVICE MARKS OF MSCI OR ITS

Effective Use of Water

AFFILIATES.

Resources
Biodiversity

AwardsManagement ofEnvironmental Pollutants

・CDP Climate Change 2021

Strengthening theMorinaga & Co. Ltd. has achieved a A- score in the Climate
Change Report issued by the CDP, an international non-profit
organization that works on the achievement of sustainableeconomy.

Foundation

Business Management
Build a Highly Transparent
and Efficient Governance
SystemHuman Rights Management

・The Platinum Kurumin certification
・The Certified Health and Productivity
Management Organization
A system established by the Ministry of Health, Labour andWelfare to certify companies that are making special efforts
as “parent-friendly companies” from among those that aresupporting employees in balancing work and childcare.
Morinaga was certified by the government as a “parentfriendly company” for six consecutive terms from 2007, andhas continuously achieved the Platinum Kurumin certification
criteria since September 2017.

Participation in Initiatives
Indices and Awards

Sustainability Policies& Guidelines
Integrated Report
ESG Data
GRI Standards

This is a program from the Ministry of Economy, Trade andIndustry and Nippon Kenko Kaigi intended for recognizing
companies, including large enterprises and small to mediumsized enterprises, for their outstanding efforts towards
promoting health through their health and productivity
management. Morinaga & Co., Ltd. has been selected for six
consecutive years since 2018 as a "Certified Health &Productivity Management Outstanding Organization in thelarge enterprise category".

・Sports Yell Company 2023
This is a program from the Japan Sports Agency which
certifies companies actively promoting measures to improve
employees’ health through sport.
Morinaga has been certified in 2023.

Sustainable Finance
IR LibraryStrengthening the Business Management Foundation
Participation in
Initiatives

Related information
Sustainability at
Morinaga TOP

Home > Sustainability at Morinaga Group > Sustainability Policies & Guidelines

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

Sustainability atrealize our purpose: “The Morinaga Group will continue to create healthy foods that

Morinaga Groupcan be enjoyed beyond generations, thereby bringing smiles to the faces of people
around the world now and in the future.”

Sustainability

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

Sustainability Advisory

By adhering to these principles and working together with trust earned from ourBoardvarious stakeholders, we aim to achieve sustainable corporate growth and contributeto the creation of a sustainable society, where everyone can lead happy lives.

Identifying theMateriality

Representative Director, President

Stakeholder
Engagement

Corporate Philosophy

Contributions to Healthy

Code of Conduct Standards of Behavior

Lives of People around
the World
Sustainability Policies

Contribute to “Health ofMind, Body, andSustainability Management

Sustainability Policy

Environment”
Corporate Citizenship

Environment

Environmental Policy

SocialHuman Rights Policy

Provision of Safe andReliable Products

Procurement Policy

Diversity and Inclusionof People

Quality Policy

Human Resource
Development

Diversity and Inclusion Policy

Fostering Organizations thatare Diverse and Dynamic

Corporate Citizenship Policy

Achieving a Healthy andWorker-friendly Workplace

Occupational Health and Safety Policy
Multi-Stakeholder Policy
GovernanceTax Policy

Environment

Achieving Sustainable
Value Chains
Promotion of Sustainable

Bribery Prevention Policy

Raw Material Procurement
Promotion of CSR Supply
Chain Management
Reduction of Food Loss and
Waste
Promotion of Waste
Reduction
Co-existence and coprosperity with local
communities

Guideline
Raw Material

Guidelines for the Procurement of Cacao Beans
Guidelines for the Procurement of Palm Oil

Conserving the Global
Environment
Response to Climate
Change Issues

Guidelines for the Procurement of Paper

Information Disclosure
Following the TCFD

Supplier

Recommendations

Supplier Guideline

Promotion of Environmental
Consideration in Containers
and Packaging

Declaration

Effective Use of Water
Resources

Morinaga Group Declaration on Health* We formulate policies, guidelines, and declarations by deliberating at ESG commitees and similar meetings, and report to the Boardof Directors.

Biodiversity
Management ofEnvironmental Pollutants

Strengthening theBusiness Management
Foundation
Build a Highly Transparent
and Efficient Governance
SystemHuman Rights Management
Participation in Initiatives
Indices and Awards

Sustainability Policies& Guidelines
Integrated Report
ESG Data
GRI Standards
Sustainable Finance
IR LibraryHome > Sustainability at Morinaga Group > ESG Data

ESG Data
Policies and performance data related to ESG (Environment-Society-Governance) in Morinaga Group businessactivities are organized by item in accordance with multiple ESG reporting guidelines and the perspicuity of the

Sustainability at

information is enhanced.

Morinaga GroupESG Data Book：

FY2022 Third Party Independent Assureance Statement GHG Emmision(Scope 1,2), Total Energy
Consumption, and Water Consumption
Environmental Management System (EMS) Certification: ISO 14001

ESG Data Back Number

Sustainability
Management
Sustainability Advisory
Board

Identifying theMateriality

ESG Data (FY2021)

Stakeholder

ESG Data (FY2020)Engagement

ESG Data (FY2019)

Contributions to Healthy

The Previous documents related toThird Party
Independent Assureance

Lives of People around
the World
Contribute to “Health ofMind, Body, andEnvironment”：

FY2021 Third Party Independent Assureance Statement GHG Emissions(Scope1,2) , Total Energy
Consumption, and Water Consumption：

FY2020 Third Party Independent Assureance Statement GHG Emissions(Scope1,2) , Total Energy
Consumption, and Water Consumption

Corporate Citizenship
Provision of Safe andReliable Products

Diversity and Inclusionof People
Human Resource
Development
Fostering Organizations thatare Diverse and Dynamic
Achieving a Healthy andWorker-friendly Workplace
Environment

Achieving Sustainable
Value Chains
Promotion of Sustainable
Raw Material Procurement
Promotion of CSR Supply
Chain Management
Reduction of Food Loss and
Waste
Promotion of Waste
Reduction
Co-existence and coprosperity with local
communities

Conserving the Global
Environment
Response to Climate
Change Issues
Information Disclosure
Following the TCFD
Recommendations
Promotion of Environmental
Consideration in Containers
and Packaging
Effective Use of Water
Resources
Biodiversity
Management ofEnvironmental Pollutants

Strengthening theBusiness Management
Foundation
Build a Highly Transparent
and Efficient Governance
SystemHuman Rights Management
Participation in Initiatives
Indices and Awards

Sustainability Policies& Guidelines
Integrated Report
ESG Data
GRI Standards
Sustainable Finance
IR LibraryHome > Sustainability at Morinaga Group > GRI Standards

GRI Standards

GRI Standards

Disclosures

Medium of publication

Sustainability at
Morinaga GroupGRI 101: Foundation 2016

Sustainability

General Disclosures
102: General
Disclosures (2016)

Management
102-1

Name of the organization

Corporate Profile

102-2

Activities, brands, products, andIntroduction of Business
Fieldsservices

Integrated Report (cover andprofile pages)
102-3

Location of headquarters

Corporate Profile

102-4

Location of operations

Business Office Guide
Group Network

102-5

Ownership and legal form

Corporate Profile

102-6

Markets served

Corporate Profile

Sustainability Advisory
Board

Identifying theMateriality
Stakeholder
Engagement
Contributions to Healthy
Lives of People around
the World
Contribute to “Health ofIntroduction of Business
FieldsGroup Network

Mind, Body, andEnvironment”
Corporate Citizenship
Provision of Safe andReliable Products

102-7

Scale of the organization

Corporate Profile
ESG Data

Diversity and Inclusionof People

102-8

102-9

Information on employees andother workers

ESG Data

Supply chain

Achieving Sustainable Value
ChainsHuman Resource
Development
Fostering Organizations thatare Diverse and Dynamic
Achieving a Healthy and102-10Significant changes to theorganization and its supply
chain

102-11

Precautionary Principle orapproach

Worker-friendly Workplace
Environment

Achieving Sustainable
Achieving Sustainable Value
Chains (Basic Stance)
Promotion of Sustainable
Raw Material Procurement
Conservivng the Global
Environment (Basic Stanceand Environment
Management Sysytem)
Build a Highly Transparent
and Efficient Governance
SystemCompliance

Value Chains
Promotion of Sustainable
Raw Material Procurement
Promotion of CSR Supply
Chain Management
Reduction of Food Loss and
Waste
Promotion of Waste
Reduction
Co-existence and coprosperity with local
communities

Conserving the Global

Risk Management

Environment

Human Rights Management102-12External initiatives

Promotion of Sustainable
Raw Material Procurement(World Cocoa Foundation
RSPO)

・

102-13

Membership of associations

Promotion of Sustainable
Raw Material Procurement(World Cocoa Foundation
RSPO)

・

Response to Climate
Change Issues
Information Disclosure
Following the TCFD
Recommendations
Promotion of Environmental
Consideration in Containers
and Packaging
Effective Use of Water
Resources102-14102-15

Statement from senior decisionmaker

Key impacts, risks, andopportunities

Message from the President
Sustainability Policies &Guidelines

Biodiversity
Management ofEnvironmental Pollutants

Risk Management
Contributions to Healthy
Lives of People around theWorld

Strengthening theBusiness Management
Foundation

Diversity and Inclusion of
PeopleBuild a Highly Transparent

Achieving Sustainable Value
ChainsSystemConserving the Global
Environment

Participation in Initiatives

and Efficient Governance
Human Rights Management

Indices and Awards

Strengthening the Business
Management Foundation

Sustainability Policies
102-16102-17

Values, principles, standards,

Corporate Principles& Guidelines

and norms of behavior

2030 Business Plan/
2021 Medium-TermBusiness Plan

Integrated Report

Sustainability Management

ESG Data

Sustainability Policies &Guidelines

GRI Standards

Mechanisms for advice andComplianceconcerns about ethics
102-18Governance structure

Corporate Governance(Corporate Governance
System)102-19Delegating authority

Corporate Governance(Corporate Governance
System)102-20Executive-level responsibility foreconomic, environmental, andSustainability Managementsocial topics

Conservivng the Global
Environment (Basic Stanceand Environment
Management Sysytem)
Corporate Governance
SystemCompliance (Promotion ofCompliance)

102-21

Consulting stakeholders on
economic, environmental,
and social topics

Stakeholder Engagement

Sustainable Finance
IR Library102-22

Composition of the highest
governance body and its
committees

102-23Chair of the highest governancebody

Corporate Governance(Corporate Governance
System)Build a Highly Transparent
and Efficient Governance
Systemhighest governance body

Build a Highly Transparent
and Efficient Governance
System102-25

Conflicts of interest

ESG Data

102-26

Role of highest governancebody in setting purpose,values,and strategy

Build a Highly Transparent
and Efficient Governance
System102-24

Nominating and selecting theCompliance
Sustainability Management
Conservivng the Global
Environment (Basic Stanceand Environment
Management Sysytem)
102-27

Collective knowledge of highest

Sustainability Management

governance body102-28102-29102-30governance body's performance

Corporate Governance(Evaluation of the Board's
effectiveness)

Identifying and managing

Sustainability Management

economic, environmental, andsocial impacts

Identifying the Materiality

Effectiveness of risk
management processes

Corporate Governance(Internal Controls)

Evaluating the highest

Stakeholder Engagement

Risk Management102-31

Review of economic,
environmental, and social topics

Sustainability Management102-32>Highest governance body'srole in sustainability reporting

Sustainability Management102-33

Communicating critical concerns

Compliance (Promotion ofCompliance)

102-34Nature and total number ofcritical concerns

102-35

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
total compensation ratio

102-40

List of stakeholder groups

Stakeholder Engagement102-41

Collective bargaining
agreements

Human Resource
Development

Identifying and selecting

Stakeholder Engagement102-42stakeholders
Stakeholder Engagement102-43

Approach to stakeholder
engagement102-44

Key topics and concerns raised

102-45

Entities included in the
consolidated financial
statements

Integrated Report102-46

Defining report content and topic
Boundaries

Integrated Report102-47

List of material topics

Identifying the Materiality

102-48

Restatements of information

Integrated Report102-49Changes in reporting

Integrated Report102-50

Reporting period

Integrated Report102-51

Date of most recent report

Integrated Report102-52

Reporting cycle

Integrated Report102-53

Contact point for questions
regarding the report

Integrated Report102-54Claims of reporting inaccordance with the GRI
Standards

102-55

GRI content index

GRI Standards

102-56External assurance

ESG Data

103-1

Explanation of the material topic

Sustainability Management

and its Boundary

Identifying the Materiality

Material topics
103: Management
Approach (2016)

Contributions to Healthy
Lives of People around theWorld
Diversity and Inclusion of
PeopleAchieving Sustainable Value
ChainsConserving the Global
Environment
Strengthening the Business
Management Foundation
Integrated Report
103-2

The management approach andits components

Sustainability Management
Contributions to Healthy
Lives of People around theWorld
Diversity and Inclusion of
PeopleAchieving Sustainable Value
ChainsConserving the Global
Environment
Strengthening the Business
Management Foundation
Integrated Report
Build a Highly Transparent
and Efficient Governance
SystemRisk Management
Human Rights Management

103-3

Evaluation of the management

Indices and Awards

approach
201: Economic
Performance (2016)

201-1

Direct economic value
generated and distributed

201-2

Financial implications and otherrisks and opportunities due toclimate change

201-3

Defined benefit plan obligations
and other retirement plans

201-4

Financial assistance received
from government

202: Market
Presence (2016)

202-1

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

202-2

Proportion of senior
management hired from thelocal community

203: Indirect
Economic Impacts(2016)

203-1

Infrastructure investments andservices supported

Integrated Report

204: Procurement

203-2

Significant indirect economic
impacts

204-1

Proportion of spending on local

Practices (2016)
205: Anti-corruption(2016)

suppliers
205-1

Operations assessed for risks
related to corruption

205-2

Communication and training

Bribery Prevention Policy

about anti-corruption policies
and proceduresCompliance (ComplianceTraining Sessions)205-3

Confirmed incidents ofcorruption and actions taken

206: Anticompretitive
Behavior (2016)

206-1

Legal actions for anticompetitive behavior, anti-trust,and monopoly practices

207: Tax (2019)

207-1

Approach to tax

207-2

Tax governance, control, andrisk management

207-3

Stakeholder engagement andESG Data (Governance)

management of concerns
related to tax

301: Materials (2016)

207-4

Country-by-country reporting

301-1

Materials used by weight or

ESG Data (Environment)

volume302: Energy (2016)

303: Water And
Effluents (2018)

301-2

Recycled input materials used

301-3

Reclaimed products and theirpackaging materials

302-1

Energy consumption within theorganization

ESG Data (Environment)

302-2

Energy consumption outside of
the organization

ESG Data (Environment)

302-3>Energy intensity

ESG Data (Environment)

302-4

Reduction of energy
consumption

Response to Climate
Change Issues

302-5

Reductions in energy
requirements of products andservices

303-1

Interactions with water as ashared resource303-2

Management of water
discharge-related impacts

304: Biodiversity

303-3

Water withdrawal

ESG Data (Environment)

303-4

Water discharge

ESG Data (Environment)

303-5

Water consumption

Effective Use of Water
Resources

304-1

Operational sites owned,(2016)

leased, managed in, or adjacentto, protected areas and areas ofhigh biodiversity value outside
protected areas
304-2

Significant impacts of activities,
products, and services on
biodiversity

304-3

Habitats protected or restored

304-4

IUCN Red List species andnational conservation list
species with habitats in areas
affected by operations

305: Emissions(2016)

305-1

Direct (Scope 1) GHG
emissions

Response to Climate
Change Issues
ESG Data (Environment)

305-2

Energy indirect (Scope 2) GHG
emissions

Response to Climate
Change Issues
ESG Data (Environment)

305-3

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

305-4

GHG emissions intensity

Response to Climate
Change Issues
ESG Data (Environment)

306: Waste (2020)

Response to Climate
Change Issues

305-5

Reduction of GHG emissions

305-6

Emissions of ozone-depleting
substances (ODS)

305-7

Nitrogen oxides (NOx), sulfur
oxides (SOx), and othersignificant air emissions

ESG Data (Environment)

306-1

Waste generation and significant
waste-related impacts

Promotion of Waste
Reduction
Reduction of Food Loss and
Waste

306-2

Management of significant
waste-related impacts

Promotion of Waste
Reduction

306-3

Waste generated

ESG Data (Environment)

306-4

Waste diverted from disposal

ESG Data (Environment)

306-5

Waste directed to disposal

ESG Data (Environment)

30: Environmental
Compliance (2016)

307-1

Non-compliance withenvironmental laws andregulations

ESG Data (Environment)

308: Supplier
Environmental
Assessment (2016)308-1

New suppliers that werescreened using environmental
criteria

308-2

Negative environmental impacts
in the supply chain and actions
taken

401-1

New employee hires andemployee turnover

ESG Data

401-2

Benefits provided to full-time
employees that are not provided

Fostering Organizations thatare Diverse and Dynamic

401: Employment(2016)

to temporary or part-time
employees
401-3

Parental leave

Fostering Organizations thatare Diverse and Dynamic
ESG Data (Society)402:
Labor/Management

402-1

Minimum notice periods
regarding operational changes

403-1

Occupational health and safety
management system403-2

Hazard identification, risk
assessment, and incident
investigation

403-3

Occupational health services

403-4

Worker participation,
consultation, andcommunication on occupational
health and safety

Achieving a Healthy andWorker-friendly Workplace
Environment

403-5

Worker training on occupational
health and safety

Achieving a Healthy andWorker-friendly Workplace
Environment

403-6

Promotion of worker healthAchieving a Healthy andWorker-friendly Workplace
Environment

403-7

Prevention and mitigation ofoccupational health and safety
impacts directly linked bybusiness relationships

Relations (2016)
403: Occupational
Health and Safety

Achieving a Healthy andWorker-friendly Workplace
Environment (Promotion of
Health and Productivity
Management)

403-8Workers covered by an
occupational health and safety
management system

403-9Work-related injuries

Achieving a Healthy andWorker-friendly Workplace
Environment
ESG Data (Society)404: Training and
Education (2016)403-10Work-related ill health404-1

Average hours of training peryear per employee

404-2

Programs for upgrading
employee skills and transition

Human Resource
Development

assistance programs

405: Diversity andEqual Opportunity

404-3

Percentage of employees
receiving regular performanceand career development reviews

405-1

Diversity of governance bodies
and employees(2016)

Fostering Organizations thatare Diverse and Dynamic
ESG Data (Society)405-2

Ratio of basic salary andremuneration of women to men

Fostering Organizations thatare Diverse and Dynamic
ESG Data (Society)406: Nondiscrimination(2016)

406-1

Incidents of discrimination andcorrective actions taken

407: Freedom of
Association andCollective
Bargaining (2016)

407-1

Operations and suppliers inwhich the right to freedom of
association and collective
bargaining may be at risk

Human Rights Management408: Child Labor(2016)

408-1

Operations and suppliers at
significant risk for incidents ofchild labor

Promotion of Sustainable
Raw Material Procurement

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

Promotion of Sustainable
Raw Material Procurement409: Forced orCompulsory Labor(2016)

409-1

410: Security
Practices (2016)

410-1

Human Rights Management

Human Rights Management

Security personnel trained inhuman rights policies orprocedures

411: Rights of

411-1

Indigenous Peoples(2016)
412: Human Rights
Assessment (2016)

Incidents of violations involving
rights of indigenous peoples

412-1

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

Human Rights Management412-2

Employee training on human

Human Rights Management

rights policies or procedures
412-3

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

413: Local
Communities (2016)

413-1

413-2

Operations with local community
engagement, impact
assessments, and development

Co-existence and coprosperity with local
communities

programs

Corporate CitizenshipOperations with significant
actual and potential negative
impacts on local communities

414: Suplier Social
Assessment (2016)414-1

New suppliers that werescreened using social criteria

414-2

Negative social impacts in the
supply chain and actions taken

415: Public Policy(2016)

415-1

Political contributions

416: Customer
Health and Safety

416-1

Assessment of the health andsafety impacts of product and(2016)

Provision of Safe andReliable Products

service categories
416-2

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

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 ofcustomer privacy and losses ofcustomer data

419: Socioeconomic
Compliance (2016)

419-1

Non-compliance with laws andregulations in the social andeconomic area

417: Marketing andLabeling (2016)

Promotion of CSR Supply
Chain Management

Provision of Safe andReliable Products

Home > Sustainability at Morinaga Group > Sustainable Finance

Sustainable Finance
The Morinaga Group is committed to the realization of its Purpose, "the Morinaga Group will continue to create
healthy foods that can be enjoyed beyond generations, thereby bringing smiles to the faces of people around theSustainability atworld now and in the future."Morinaga GroupIn the "2030 Business Plan," our long-term business plan for 2030 announced in May 2021, we set forth our 2030
Vision, "the Morinaga Group will change into a wellness company in 2030.”

Sustainability

As one of the ongoing initiatives in line with this Vision, we have decided to issue Sustainability Bonds.

Management
Sustainability Advisory
Board

Sustainability Bonds

Identifying theMateriality

Outline of the Issuance＆

Official name

Morinaga Co., Ltd., Limited 15th unsecured straight bonds(Sustainability bond with specific inter-bond pari passu clause for short)

Stakeholder

Tenor

5 years

Contributions to Healthy

Issue date

December 8, 2022

Size

9 billion yen

Coupon0.490%Engagement

Lives of People around
the World
Contribute to “Health ofMind, Body, andEnvironment”

Use of proceeds

Lead manager

Corporate Citizenship

Expenditure for rebuilding the Morinaga Shibaura Building (tentative

Provision of Safe andname)

Reliable Products

Mitsubishi UFJ Morgan Stanley Securities Co.,Ltd., Mizuho Securities

Diversity and InclusionCo., Ltd.

Structuring agent

Mitsubishi UFJ Morgan Stanley Securities Co.,Ltd.

External reviewer

Japan Credit Rating Agency, Ltd.,of People
Human Resource
Development
Fostering Organizations thatare Diverse and Dynamic
Achieving a Healthy andNews Release

Worker-friendly Workplace
Environment

Sustainable Finance Framework
Sustainable Finance Framework

Achieving Sustainable
Value Chains
Promotion of Sustainable
Raw Material Procurement
Promotion of CSR Supply
Chain Management

Second Party Opinion
We have obtained a Second Party Opinion from Japan Credit Rating Agency, Ltd.
Second Party Opinion

Reduction of Food Loss and
Waste
Promotion of Waste
Reduction
Co-existence and coprosperity with local
communities

List of investors who declared investment
Here are the investors who made investment declaration of the Sustainability Bonds.

Conserving the Global
Environment

List of investors who declared investment

Response to Climate
Change Issues
Information Disclosure

Reporting
Allocation reporting and impact reporting will be updated in the future.

Following the TCFD
Recommendations
Promotion of Environmental
Consideration in Containers
and Packaging
Effective Use of Water
Resources
Biodiversity

Related information

Management ofEnvironmental Pollutants

IR information

Strengthening theBusiness Management
Foundation
Build a Highly Transparent
and Efficient Governance
SystemHuman Rights Management
Participation in Initiatives
Indices and Awards

Sustainability Policies& Guidelines
Integrated Report
ESG Data
GRI Standards
Sustainable Finance
IR Library

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