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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 theCompany's founder.

Management
Identifying theMateriality

Machiko Miyai

Stakeholder

Director and Managing Executive Officer

Engagementin charge of Sustainable Management Division

Contributions to Healthy

Morinaga Group Sustainability Policy

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
Human Resource

We will provide value to customers and society and make efforts to solve social issues

Development

while giving proper consideration to the global environment.

Fostering Organizations that

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

are 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)

Promotion of Sustainable
Raw Material Procurement
Promotion of CSR Supply

Corporate Philosophy

Chain Management

Code of Conduct Standards of Behavior

Reduction of Food Loss andSustainability Policies & Guidelines

Waste
Promotion of Waste
Reduction
Co-existence and co-

Identifying the Group's Materiality

prosperity with local
communities

The Morinaga Group began deliberating material issues for achieving our Purpose and the 2030 Vision in July
2020, and identified material issues (Materiality) from both financial and non-financial aspects following theapproval of the Board of Directors.

Conserving the Global
EnvironmentWe will steadily establish social values and a resilient management foundation to achieve sustainable growth

Response to Climate

through addressing our materiality.

Change Issues
Information Disclosure

Process of Identifying Materiality

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
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.

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.
The Committee reports on and shares the latest society trends related to sustainability, as well as deliberates
necessary items on policy,planning, and response to issues in order to achieve our Purpose and the 2030 Vision.
Also, it monitors the progress of activities aimed at achieving 2030 Goals and leads the entire Group's initiatives ofsustainability.

Lecture on diversity for board members, lecturer: Asako Osaki (gender specialist)

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

Identifying theon vital issues in management and business, international standards and initiatives such as SDGs, and Global

Materiality

Compact, expectations and requests from stakeholders such as customers, business partners, and NGOs, survey
items received from survey organizations on CSR, ESG, and sustainability, and other factors such as the external
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.

Stakeholder
Engagement
Contributions to Healthy
Lives of People around
the World

As a result, 21 issues have been rated as important, while seven of which have been rated as the most important

Contribute to “Health of(see materiality matrix*).

Mind, Body, andBased on this result and repeated discussion among board members, given comprehensive consideration on their

Environment”

relation to the Morinaga Group's management and business operations, we have identified five materialities.

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

Initiatives for each material issue

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
Indices and Awards

Sustainability Policies& Guidelines
Integrated Report
ESG Data
GRI Standards
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
team so that they can utilize the feedback in the management and corporate activities.
We communicate with our stakeholders actively and regularly, striving to contribute to the achievement of asustainable society.

Morinaga Group's Stakeholders
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.

Sustainability at
Morinaga Group
Sustainability
Management
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

Conserving the Global
Environment

Customers

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

Employees

Management ofEnvironmental Pollutants

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

Sustainability Policies

Business partners& Guidelines
Integrated Report
ESG Data
GRI Standards
IR Library

Shareholders/investors

Local community

Global environment

Initiatives for each material issue

Sustainability at Morinaga Group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

Management
Identifying theMateriality

1. Develop delicious and healthy foods

Stakeholder

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

Engagement

3. Develop sustainable products
4. Food security and quality assurance
5. Appropriately convey social and environmental information about products

Main expected opportunities and risks<opportunities>
・Growing business opportunities following the rising health consciousness of consumers
・Growing business opportunities and improving competitiveness by tapping into latent markets
・Growing business opportunities from rising awareness of sustainability among consumers

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

・Increasing social trust<risks>・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

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

1. Develop and supply products that contribute to “health of mind and body”

Achieving a Healthy and2. Develop and supply products with sustainable value

Worker-friendly Workplace

3. Supply safe and reliable foods

Response to SDGs

Environment

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

Waste
Promotion of Waste
Reduction

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

Co-existence and co-nutritious Western confections to Japan and the statement of “rich in nourishment /exquisite flavor,” as written on

prosperity with local

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, andcommunities

information provision capability, in order to consistently provide customers with values over the age. Even today,
we are striving to provide values through a wide range of product categories to bring “health of mind (deliciousness
and fun)” and “health of body (nutrition supplement)” to customers of all generations and lifestyles in order tocontribute to a healthy life by harnessing these capabilities as our strength. Particularly, lifestyles have been

Conserving the Global
Environment
Response to Climate
Change Issues

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

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

Following the TCFD

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

Recommendations

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

Promotion of Environmental

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

Consideration in Containers

Values Provided to Customers

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
Indices and Awards

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

Related information

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

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

Sustainability at
Morinaga Group
Sustainability
Management
Identifying theMateriality
Stakeholder
Engagement

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

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
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
Co-existence and coprosperity with local
communities

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

Conserving the Global
Environment
Response to Climate
Change Issues“health of mind” in terms of scientific approach and consumer-oriented marketing. At the same time, we are

Information Disclosure

also enhancing our technology to reduce sugar, fat, and calories to meet the growing needs for “health of body”

Following the TCFD

in confectionery and foodstuffs.

Recommendations
Promotion of Environmental

Information Provision to Consumers

Consideration in Containers
and Packaging
Effective Use of Water
Resources

Information dissemination based on sports science

Biodiversity
Management of

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

Environmental Pollutants

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

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

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 toempathize 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

Nature Exploration

Other

Joint Programs with Non-affiliatedCompanies through the Angel Smile
Project

Management
Identifying theMateriality
Stakeholder
Engagement

Basic StanceContributions to Healthy

The Morinaga Group's purpose is to "continue to create healthy foods that can be enjoyed beyond generations,
thereby bringing smiles to the faces of people around the world now and in the future".
Based on this purpose, we will formulate a social contribution policy, work on solving social issues, and contributeto the realization of a sustainable society.

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

Morinaga Group Corporate Citizenship Policy

Provision of Safe andReliable Products

The Morinaga Group will carry out social contribution activities based on the altruistic spirit

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

of People

Through cooperation and collaboration with local communities, government agencies,

Human Resource

NPOs, and NGOs, we will work as a member of society to contribute to the creation of asociety that brings smiles to people's faces.

• Main Activities

Nurturing next generation, Emvironmental Conservation,

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

Disaster Recovery Assistance, and Local Volunteering, etc.

Achieving Sustainable
Value Chains

Food Education and Cofectionery Education

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

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

Reduction of Food Loss andthat connects people to people and hearts to hearts.

Waste

Morinaga donates “Mel and Mar's Picnic,” our original picture book for confectionery education, to children's

Promotion of Waste

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.

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

Morinaga Angel Museum MORIUM & Tsurumi Factory
Tour

Strengthening theBusiness Management
Foundation
Build a Highly Transparent
and Efficient GovernanceWe conduct guided tours for visitors to see both the Morinaga Angel Museum MORIUM and the Tsurumi factory

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

Human Rights Management

provide insight into the thought process behind our products through displays and videos. During the factory tour,

Indices and Awards

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.

What's MORIUM?
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
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 ofour 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.

Nature Exploration
Morinaga Little Angels Education Project.
For two decades since FY2000/3, we have organized six-day/five-night expeditions to uninhabited islands foradventurous experiences under the Morinaga Little Angels Education Project. From the first expedition through tothe 2019 Saiko (the best) Adventure Team program, a total of over 800 children have participated.
The project was launched in commemoration of the 100th anniversary of our founding. By reflecting on children's
living environments, which have changed dramatically over the past century, the project embodies our hope for all
children to grow up in good health and with vigor, and be spiritually affluent in the 21st century.
Looking back at the 20 years of activities, in 2020 a survey of past participants was conducted, and a virtual
reunion was held.
The event enabled dialogue with earlier participants, who had developed their zest for life through camping andvarious adventures away from familiar settings, and it provided an enjoyable time to discuss common memories
across time.

• Before participating in the expedition, I was reserved and did not have opinions of my own, often

agreeing with those of other people. But after participating, I was able to communicate actively withpeople and do things of my own initiative. During the time spent with others on the expedition, I learned
to respect differences among people and to be considerate of other members, and I think this is thereason why I am now able to cherish connections between people.

• Participating in the camp changed my awareness of food in a big way. I was in third grade at the time,and eating confectioneries when I was completely worn out from playing a lot made me truly happy. I

was able to learn the importance and thankfulness of eating, as well as the joys of it. And it was aroundthat time that I started thinking about a future career in food. Today, I am studying nutrition at university,and I also do volunteer work for children's extracurricular activities. In the future, I hope to engage infood education and other efforts, doing the kind of work that affects a great number of people.

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

Group discussions on SDGs

Recognized with an Award for Companies Promoting ExperienceBased Learning Activities for Youths
With the aim of promoting the experiential learning activities of youths, the Ministry of Education, Culture, Sports,
Science and Technology awards companies making excellent efforts to this end as part of their CSR and corporate
citizenship activities.
Under this award program for companies promoting experienced-based learning activities for youths, theChallenge! Saiko Adventure Team program received the judges' award of excellence.

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 other natural
disasters, including the Great East Japan Earthquake. The number of the book's copies delivered amounted
8,556.

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

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

Commitment to Quality

Sustainability at
Morinaga Group
Sustainability
Management
Identifying theMateriality

The Morinaga Group believes it is its mission as a food manufacturer to constantly ensure the quality and safety of
products and deliver safe and reliable products to customers.

Stakeholder
Engagement
Contributions to Healthy

Our 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.

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

Quality Policy

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

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
Level,” “Manuals Related to Quality Assurance,” and “Quality Standards.” We conduct activities on assuring quality
in each department.
All products of the Morinaga brand are developed involving multiple departments and divisions. We implement a

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

cross-sectional “Quality Assessment System” from the product planning phase to eliminate any omissions orEffective Use of Water

oversight in ensuring quality, safety, and legal compliance. In addition, we conduct constant analysis in pursuit of

Resources

excellent quality. The Analysis Group within the Quality Assurance Division conducts scientific verification andBiodiversity

assurance on products and raw materials. Morinaga Institute of Biological Science, Inc. contributes to theManagement ofverification and assurance of the safety and legal compliance of Morinaga Group's products as well as and legal

Environmental Pollutants

comploance of products which are produced by the company of Morinaga Group and other company, bydeveloping, manufacturing, and selling food allergy analysis kits. And in preparation of possible quality accidents,

Strengthening the

we have developed a Crisis Management Response Guidelines that outlines how directors and employees should

Business Management

handle matters in such cases.

Quality Assurance System

Foundation
Build a Highly Transparent
and Efficient Governance
SystemHuman Rights Management
Indices and Awards

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

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

Steps We Take Before Our Products Reach Our Customers

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 12 categories andapproximately 180 items to check. Our product development process involves a number of divisions, with each ofthem being responsible for reviewing and confirming the product's safety and other specifications. At the sametime, our Quality Assessment System serves as a cross-sectional tool to avoid any oversight or unchecked areas

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 June 30, 2021)
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 DARS ＜Milk＞

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

Initiatives by Cooperating Companies
In addition to its own production factories, the Morinaga Group has many manufacturing partners (approximately
90 companies as of April 2021) in Japan contracted to carry out its production.
When contracting manufacturing partners for production, we confirm in advance that those partners have inplace a quality control system that is comparable to that of the Morinaga Group's production factories.
Confirmation is made 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 used in improving services.
In FY2021/3, although both the overall satisfaction and intention to repurchase have reached over 87%, thesenumbers have declined compared to the previous fiscal year. We believe the result reflects the increased difficulty
to connect by phone due to the reduced telephone hours and less phone operators available as an impact of the
COVID-19 pandemic. Going forward, we will establish a more easily accessible inquiry system and try to be moreconsiderate of our customers in efforts to improve customer satisfaction.

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.

Contributions to Healthy Lives of People around the World
Contribute to “Health of Mind,
Body, and Environment”

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

Identifying theMateriality

Main challenges included in materiality

Stakeholder

1. Foster human resources to achieve our vision

Engagement

2. Diversity and inclusion

Main expected opportunities and risks

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

Contribute to “Health of・Securing of talent needed to contribute to realization of our Purpose and the 2030 Vision

Mind, Body, and・Improving innovation capabilities and environmental response capabilities<risks>・Declining sustainable growth capabilities due to delayed response
・Declining organizational competitiveness and social reputation due to delayed response

Main 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

Environment”
Corporate Citizenship
Provision of Safe andReliable Products

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

Response to SDGs

Achieving a Healthy andWorker-friendly Workplace
Environment

Achieving Sustainable
Value Chains

Basic Stance
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.” We are working on themes listed in the table on the rightbased on our human resources strategy in order to achieve the targets above.

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

Initiative Themes to Achieve Long-Term Targets for 2030
1. Foster people, culture, and organizations to achieve our Purpose and the 2030 Visioncommunities

Conserving the Global
Environment

2. Foster organizations that are diverse and dynamic
3. Build healthy and comfortable workplaces and help employees to find their work
meaningful

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
Indices and Awards

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

Related information
ESG Data

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

Human Resources Development that Leads to the
Achievement of the Purpose and 2030 Vision

Sustainability
Management
Identifying theMateriality
Stakeholder

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.
Our ideal employee profile for creating values through business is as follows. We have defined “problem
identification,” “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
enhancement, which are implemented as a combination with training by job class and selfdevelopment.

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

Conserving the Global
Environment

Response to Climate

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

1
Leader training

Specific examples (abstract)

Change Issues
Information Disclosure
Following the TCFD
Recommendations

Management skills and nurturing skills enhancement training

Promotion of Environmental

Next-generation leaders training

and Packaging

Marketing Headquarters: Advanced marketer training

Resources

Consideration in Containers
Effective Use of Water
Biodiversity

Production Headquarters: Production technology training
2
Expertise enhancement

Environmental Pollutants

Sales Headquarters: SP* training
Overseas Business Headquarters: Language skills enhancement
program3
Productivity enhancement

Management of

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
SystemHuman Rights Management
Indices and Awards

Sustainability Policies& Guidelines

Training 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.

Integrated Report
ESG Data
GRI Standards
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 employees, we hold various interview sessions between supervisors and theirsubordinates every quarter. These opportunities include quarterly accomplishment review, the Human Resource
Development Program, and career interviews. In addition, the Human Resources Division holds an interview withparticipants in the rank-based training programs, ensuring that the Division can directly listen to employees andshare 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.

Diversity and Inclusion of People
Fostering Organizations that

Achieving a Healthy and Worker-

are Diverse and Dynamic

friendly Workplace Environment

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

Diversity and Inclusion
Our diversity promotion efforts began in FY2002/3, when the Company started its initiative to promote women's
empowerment with the goal of creating an organization where women can demonstrate their abilities and play
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 creation

Sustainability at
Morinaga Group
Sustainability
Management
Identifying theMateriality
Stakeholder
Engagementof inclusive workplaces that enable diverse human resources with various differences, not only in terms of gender,

Contributions to Healthyage, ethnicity, nationality, and presence or absence of disabilities, but also in values on work and life, individualLives of People aroundcharacter, and previous work experiences to give their strengths full play.

the World
Contribute to “Health ofMind, Body, andEnvironment”

Morinaga Group Diversity and Inclusion Policy“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.

Corporate Citizenship
Provision of Safe andReliable Products

Diversity and Inclusionof People
Human Resource
Development

We take the approach of “leveraging each person's individuality” and at the same time

Fostering Organizations thatdevelop relationships of mutual trust. In that way, we will create conditions whereare Diverse and Dynamic

everyone can demonstrate their strengths and play an active role. By enhancing our ability

Achieving a Healthy andto respond to changes (resilience) and creating new value (innovation) throughaugmenting the diverse knowledge generated by various individuals, we will continue toaddress those customers' and society's challenges.

— Five Guidelines for implementing the Policy —Worker-friendly Workplace
Environment

Achieving Sustainable
Value Chains
Promotion of Sustainable
Raw Material Procurement

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.

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 theirprosperity with local
communities

potential 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.

Conserving the Global
Environment
Response to Climate
Change Issues

3. Providing Fair Support

Information Disclosure

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.

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

Biodiversity
Management ofEnvironmental Pollutants

Strengthening the

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.

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

Systems and initiatives to support diversity and inclusion

Indices and Awards

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.

Goal for 2030

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

IR Library* 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.

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.

Diversity and Inclusion of People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

Basic StanceIn 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.

Sustainability at
Morinaga Group
Sustainability
Management
Identifying theMateriality
Stakeholder
Engagement

Realizing Work-life BalanceContributions to Healthy
Lives of People aroundWe 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.

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

Diversity and Inclusionof People
Human Resource

Telework system

Development
Fostering Organizations thatare Diverse and Dynamic

In April 2017, Morinaga introduced a telework program that covers approximately 1,000 employees. At the time ofAchieving a Healthy andthe introduction, we made some enhancements to our facilities and institutional arrangements, such as the use ofWorker-friendly Workplace

ICTs and the removal of the core time requirements from the flexible work arrangements. In FY2020/3, more thanEnvironment

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
By supporting the maintenance and enhancement of the health of employees—who are the source of ourAchieving Sustainable
Value Chains
Promotion of Sustainable
Raw Material Procurement
Promotion of CSR Supply
Chain Management

corporate vitality and our most important assets—and their families, Morinaga promotes health management in

Reduction of Food Loss andorder to create a company where it is rewarding to work and that enriches the lives of each employee.

Waste

In April 2018, we issued the Morinaga Health Declaration. Led by the Chief Health Officer (CHO), our Health

Promotion of Waste

Promotion Committee is active to strengthen collaborations with occupational health staff and the Morinaga Health

Reduction

Insurance Association, accelerate the promotion of health management, and promote various initiatives by seeing

Co-existence and co-employees' health from a managerial perspective.
By definition, the CHO is the chief executive who is responsible for helping a company or organization recognize

prosperity with local
communitiesits employees' and their family members' health as part of corporate management, and carrying out healthmanagement systematically as a member of management, for employees and others.
The Morinaga Group will continue to actively support its employees' and their family members' mental and physicalhealth through work style reform and health maintenance/promotion activities, in an effort to establish a foundation
for active and extended work life.

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
Indices and Awards

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

ESG Data: Percentage of employees participating in health checkups

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 five 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.

*1 Frequency of occupational accidents indicates the number of injuries/ fatalities (including sick or injured due to non-lost work time
accidents) due to occupational accidents per one million working hours.
*2 1Frequency of occupational accidents indicates the number of injuries/ fatalities (not including sick or injured due to non-lostwork time accidents) due to occupational accidents per one million working hours.
*ESG Data: LTIFR and TRIR

Diversity and Inclusion of People

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
2. Human rights and environmental issues in the production stage of agricultural raw materials
3. Reduce food loss and waste
4. Co-exist and co-prosper with local communities

Main expected opportunities and risks<opportunities>
・Achieving long-term stable procurement of safe and high-quality raw materials
・Reducing human rights and environmental risks
・Lowering costs by reducing manufacturing loss and returns
・Increasing social trust

Management
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<risks>・Growing risks surrounding procurement of agricultural raw materials due to delayed response
・Declining social trust, brand value, and corporate value
・Declining social reputation due to delayed response・Growing operational risks at business sites, etc.

Main Actions Ahead of 2030
1. Promote sustainable raw materials procurement
2. Promote CSR supply chain management
3. Reduce food loss and waste
4. Co-exist and co-prosper with local communities

Response to SDGs

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Basic Stance
Promotion of Environmental

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 toConsideration in Containers
and Packaging
Effective Use of Water

realize “health of environment” which will contribute to the sustainability of society and the environment throughout

Resources

our entire value chain. In particular, we consider human rights and environmental issues in the production phase of

Biodiversity

agricultural raw materials, social and environmental issues that arise in the supply chain when procuring raw

Management ofmaterials, challenges in stable procurement, and food loss and waste as our top priorities. As such, it is our plan toEnvironmental Pollutants

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

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

Sustainability Policies& Guidelines
Integrated Report
ESG Data
GRI Standards
IR LibraryRelated information
Procurement
PolicySupplier Guideline

ESG Data

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

Identifying the

Basic StanceMateriality

Based on the Morinaga Group Procurement Policy, we intend to contribute to the realization of a sustainable

Stakeholder

society by building transparent, fair and equitable relationships with our business partners, and cooperating withEngagement

them to conduct socially-responsible and environment-friendly procurement activities.

Contributions to Healthy
Lives of People around

Morinaga Group Procurement Policy

the World
Contribute to “Health ofMind, Body, andIn 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.

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.

Environment”
Corporate Citizenship
Provision of Safe andReliable Products

Diversity and Inclusionof People
Human Resource

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

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

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.

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 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
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.

prosperity with local
communities

Conserving the Global
Environment

(Established: May 2018)
Response to Climate

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

Change Issues
Information Disclosure
Following the TCFD
Recommendations
Promotion of Environmental

Goal for 2030

Consideration in Containers
and Packaging
Effective Use of Water
Resources*1

100% for cacao beans, palm oil, and paper

Biodiversity
Management of*1 Group consolidated. Paper covers product packaging only.

Environmental Pollutants

Medium-term Targets

Strengthening theBusiness Management
Foundation

Raw materials for products of Morinaga & Co., Ltd. sold in Japan

Build a Highly Transparent• Cacao beans Switch to 100% of cacao beans from sustainable sources by FY2026/3• Palm oil Switch to 100% of palm oil from sustainable sources by FY2024/3*2• Paper Switch to 100% of paper from sustainable sources by FY2023/3*2 Paper covers product packaging only.

Cacao 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).

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

and Efficient Governance
SystemHuman Rights Management
Indices and Awards

Sustainability Policies& Guidelines
Integrated Report
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GRI Standards
IR LibraryInspection Scenery

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

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/

PaperJapan 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.

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

Achieving Sustainable Value Chains

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

Promotion of CSR Supply Chain Management
Basic StanceIn 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.

CSR Supply Chain Management: Long-Term Targets
Goal for 2030

Sustainability at
Morinaga Group
Sustainability
Management
Identifying theMateriality
Stakeholder
Engagement

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

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

In June 2021, we formulated the Morinaga Group Supplier Guideline.

Mind, Body, andIn October 2021, we held a briefing session for raw material suppliers with the participation of 49 companies.

Environment”
Corporate CitizenshipSupplier Guideline

Provision of Safe andReliable Products

In addition to sharing it with our business partners and asking them to comply with it, we will regularly monitor theiractivities through surveys and other means. If there are matters not conforming to the Guideline are found, steps
will be taken to improve and resolve those matters.
Furthermore, information on progress will be published hereafter on our website and by other means.

Diversity and Inclusionof People
Human Resource
Development

Strengthening Partnerships with Business Partners
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

Fostering Organizations thatare Diverse and Dynamic
Achieving a Healthy andWorker-friendly Workplace
Environmentand distribution.
At our annual information exchange meeting with cooperating companies, we exchange information on various
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

Achieving Sustainable
Value Chains
Promotion of Sustainable

2021, 42 companies participated. We will continue to convey our cooperative stance on sustainability to our

Raw Material Procurementbusiness partners and ask them for their understanding and the implementation of initiatives.

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

Achieving Sustainable Value Chains

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

Related information

Management ofEnvironmental Pollutants

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

Sustainability Policies& Guidelines
Integrated Report
ESG Data
GRI Standards
IR LibraryHome > Sustainability at Morinaga Group > Achieving Sustainable Value Chains > Reduction of Food Loss and Waste

Reduction of Food Loss and Waste
Basic Stance

Initiatives to Reduce Food Waste
Emissions

Food Loss And Waste Reduction: LongTerm Targets
Initiatives to recycle food wastes

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

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

Sustainability at
Morinaga Group
Sustainability
Management
Identifying theMateriality
Stakeholder
Engagement
Contributions to Healthy
Lives of People around

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

the World

while contributing to the reduced occurrence of food loss and waste, improving the recycling rate and donations toContribute to “Health offood banks, in promoting a cycle and effective use of food resources.

Mind, Body, andFood Loss And Waste Reduction: Long-Term Targets
Goal for 2030

Environment”
Corporate Citizenship
Provision of Safe andReliable Products

Diversity and Inclusion

Food loss and waste reduced by 70% from receiving of raw materials to deliveryof People(distribution)

Human Resource*1 Domestic Group consolidated*2 Intensity [Annual Food Loss and Waste Amount (t) ÷ Annual Production Weight (t)]*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 foodwaste that has been returned to the circulation of food resources, such as feed and fertilizer.

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

Initiatives to Reduce Food Waste Emissions
In order to achieve the goal of reducing food loss and waste, we are committed to reducing food waste emissions

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 Managementby continuously undertaking productivity improvement activities and improving our mainstream work processes

Reduction of Food Loss andthrough, for example, the reduction of process losses.

Waste
Promotion of Waste

Initiatives to recycle food wastes
Our factories are endeavoring to reduce the generation of waste and to recycle the food wastes they generated by

Reduction
Co-existence and coprosperity with local
communities

transforming them mainly to animal feed, fertilizer, and raw materials for methane fermentation. Due to theircharacteristics, our product wastes are not always suitable for recycling. However, in the future, we will continue toConserving the Global
Environment

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

Response to Climate

to achieve the goal of reducing food loss and waste.

Change Issues
Information Disclosure

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

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 GovernanceDonating to the Japan Association for the World Food
Programme's Zero Hunger Challenge

SystemHuman Rights Management
Indices and Awards

The World Food Programme is the sole food-assistance organization of the United Nations, and it is dedicated to

Sustainability Policies

achieving zero hunger.

& Guidelines

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.

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.

Integrated Report
ESG Data
GRI Standards
IR LibraryAchieving Sustainable Value Chains

Related information

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

Basic Stance

Sustainability at
Morinaga Group
Sustainability
Management
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

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

Contribute to “Health ofand improving our mainstream work processes through, for example, the reduction of process losses.

Mind, Body, andESG Data: Waste Emissions

Environment”
Corporate Citizenship

Promotion of Waste Recycling

Provision of Safe and

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

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

of People

ESG Data: Waste Recycling Rate

Waste Classification and Management

Reliable Products

Human Resource
Development
Fostering Organizations thatare Diverse and Dynamic
Achieving a Healthy andMorinaga's four factories and three affiliated production companies are working on the waste classification andmanagement to ensure an effective use of resources.
ESG Data: Waste Actual Results

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

Worker-friendly Workplace
Environment

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

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

Reduction of Food Loss andalong Omotesando and at Rayard Miyashita Park during 2020 and 2021.

Waste
Promotion of Waste* SmaGO smart trash bins: Using electricity generated by the solar panels installed on the top, the bins communicate with cloudservers 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.

Reduction
Co-existence and coprosperity with local
communities* The SmaGO smart trash bin project is provided by Forcetech Inc.

Conserving the Global
Environment

Achieving Sustainable Value Chains

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

Related information

Management ofEnvironmental Pollutants

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

Sustainability Policies& Guidelines
Integrated Report
ESG Data
GRI Standards
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
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

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.

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

Support for the Fight against COVID-19
We provided 360,000 units of in Jelly to medical institutions and donated to the WeSupport project, which offers
food support to healthcare workers.
Through Meals on Wheels Japan and Musubie, the national children's cafeteria support center, we provided
30,000 units of confectioneries to children's cafeterias.
We made a donation for the purpose of addressing the COVID-19 pandemic to the city in which Morinaga(Zhejiang) Co., Ltd. is located.

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

Supporting local activities towards sustainability

Resources
Biodiversity
Management ofIn support of Yokohama city's ethical consumption campaign promoting the purchase of environment-friendly andEnvironmental Pollutantssocially-responsible products, we provided our products as gifts to be given out as part of the campaign.

Strengthening theBusiness Management

Supporting Education and Preventing Child Labor in Cacaoproducing Countries

Foundation
Build a Highly Transparent
and Efficient Governance
SystemThe One Chocolate for One Smile project is aimed at aiding the activities to improve the educational environment

Human Rights Management

for children in cacao-producing countries, using revenues from the sale of our chocolate products subject to the

Indices and Awards

project (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.

Sustainability Policies

In cooperation with NGOs, we are working to support education and the eradication of child labor in cacao-& Guidelines

producing countries.

Integrated Report

Plan International
ACE (Action against Child Exploitation)

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Achieving Sustainable Value Chains

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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

Identifying theMateriality

Main challenges included in materiality

Stakeholder

1. Mitigate and adapt to climate change

Engagement

2. Eco-friendly plastic containers and packaging along with recycling and reuse

Main expected opportunities and risks

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

Contribute to “Health of・Creation of innovation through external collaboration

Mind, Body, and<risks>・Growing risks in procurement of agricultural raw materials
・Rising production costs due to carbon taxes, etc.
・Declining corporate value due to delayed response

Main Actions Ahead of 2030
1. Respond to climate change issues
2. Promote environmental consideration in containers and packaging
3. Effective use of water resources

Environment”
Corporate Citizenship
Provision of Safe andReliable Products

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

Response to SDGs

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

Global environmental issues, such as climate change and plastic pollution, can potentially impact the Group's

Reduction of Food Loss andbusiness and performance over the medium- to long-term. We will accelerate our initiatives on environmental

Waste

conservation appropriately and strategically following our environmental policy in achieving sustainable growth for
the Group and providing “health of environment.”

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

Conserving the Global
Environment

Response to Climate
Change Issues
Information Disclosure

Morinaga Group Environmental Policy

Following the TCFD
Recommendations

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

Promotion of Environmental
Consideration in Containers

We are also continually improving our environmental management system, implementing

and Packaging

environmentally conscious initiatives in various aspects of our business activities.

Effective Use of Water
Resources
Biodiversity

1. Compliance with environment-related laws, ordinances, andManagement ofregulations, etc.

Environmental Pollutants

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

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.

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

3. Reduction of CO2 and other greenhouse gas emissions

Indices and Awards

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.

Sustainability Policies& Guidelines

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）

Integrated Report
ESG Data
GRI Standards
IR Library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.

Conserving the Global Environment

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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
Identifying the

Basic StanceMateriality
Stakeholder

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

realization of a decarbonized society. To achieve this goal, we are conducting carbon management including
energy conservation and visualization of energy consumption. Going forward, we plan to utilize renewable energy.

Contributions to Healthy

In April 2022, we also endorsed the recommendations of the Task Force on Climate-related Financial

Lives of People around

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

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

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

Diversity and Inclusionof People

Goal for 2050

Human Resource
Development

Goal of net-zero GHG emissions*1

Fostering Organizations thatare Diverse and Dynamic
Achieving a Healthy andWorker-friendly Workplace*1 Group consolidated basis.

Environment

Goal for 2030

Achieving Sustainable
Value Chains*2

30% reduction in CO2 emissions*2 Scope 1 + 2 (domestic Group consolidated, compared to FY2019/3)

ESG Data: Greenhouse Gas Emissions

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

Main Initiatives Aimed at Reducing Greenhouse Gas
Emissions

Change Issues
Information Disclosure
Following the TCFD
Recommendations
Promotion of Environmental

Initiatives

Detail

1.Reducing CO2 emissions atfactories• Promote visualization of CO2 emissions• Establish a highly efficient production system• Implement energy conservation initiatives (adopt high-efficiency andenergy-saving equipment, operate air conditioning efficiently, etc.)• Consideration for switch to alternative fluorocarbons with a low ozone
depletion potential and non-fluorocarbon materials

2.Initiatives at facilities using
fluorocarbons• 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 anddeliveryConsideration 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
Indices and Awards

Initiatives to Reduce CO2 Emissions

Sustainability Policies

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

Integrated Report& Guidelines

emissions visible.

ESG Data
Because Morinaga's four factories and three affiliated production companies account for a large portion of our CO2
emissions, we are stepping up efforts chiefly in our production division.

GRI Standards
IR Library

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.

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 has created a joint
distribution system in collaboration with the corporations in the same industry.
Increasing the loading rate through the joint distribution reduces the number of transportation and delivery
vehicles, leading to a decrease in air pollutant emissions.
As a Specified Consignor* under the revised Act on the Rationalization etc. of Energy Use (“Energy 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.

Conserving the Global Environment

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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 Risks

Morinaga Group’s Important Opportunities

Basic Approach to Initiatives andProgress

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

Sustainability at
Morinaga Group
Sustainability
Management
Identifying theMateriality

then, we have been addressing the TCFD recommendations, including conducting climate change scenario

Stakeholder

analysis.

Engagement
Area

Details
The Morinaga Group’s reporting, target setting, and progress monitoring concerning
sustainability initiatives which include climate change, are deliberated on by the ESG
Committee. The President and Representative Director then makes a decision andreports it to the Board of Directors. In FY2022/3, the ESG Committee convened seventimes.
The deliberations of the ESG Committee are considered in various aspects of decision
making concerning management.
In FY2022/3, we established the TCFD Subcommittee under the ESG Committee. This
subcommittee is responsible for analyzing the Morinaga Group’s risks and opportunities
and reviewing responses following the TCFD recommendations. It is led by the Director
and Managing Executive Officer in charge of the Sustainable Management Division. It
convened three times in FY2022/3, and the results are reviewed by the ESG Committee
and then reported to the Board of Directors.

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 that

Governanceare 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

Area

Details
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 toanalyze the impacts in Japan in 2030 and 2050. As a result, the 4℃ scenario identified

Strategy

RiskManagement

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 theserisks, we will strive to reduce our own CO₂ emissions and address the risks andopportunities that are important.
The Morinaga Group established the Total Risk Management Committee, which is led by
the President and Representative Director. This committee identifies the risks, evaluates
the severity, and implements countermeasures against these risks, which manage andaddress them appropriately. The importance of these risks is evaluated by the TCFD
Subcommittee. ) The results are reviewed by the ESG Committee and then reported to
the Board of Directors, ensuring companywide risks and business operations aremanaged and addressed appropriately.
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 awayfrom fossil fuel. At the same time, we are considering the introduction of renewableenergy and implementing measures to achieve these targets.

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
Indices and Awards

Sustainability Policies& Guidelines
Integrated Report
Indicatorsand targets

ESG Data
GRI Standards
IR Library

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℃

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）

Representative Concentration Pathways (RCP1.9)（IPCC、2021年）

Morinaga Group’s Important Risks
Category

Sub-

Risk factors

category
Transition
risks

Policy andregulation

Impact on

Spread ofGHGemissions

Rising energy
costs andlogistical• Consider and implement ways

pricing andstricter GHG
emissions
reportingobligations

costs causedby theintroduction ofcarbon taxes

Stricterenergyconservation
policyRising cost ofcapitalinvestment for
manufacturing
facilities due

net-zero GHG emissions by
2050*2• Promote visualization of CO₂
emissions at factories,
implement energy conservation
measures, and establish highly
efficient production systemthrough reorganization• Consider use of renewableenergyto thecompany’s
response toenergyconservation
driven bystricter energy
conservation
policyMarkets

Response

operations

Decarbonizati
on-related
mandates andregulations on
existing
products andRisingpackagingcosts due toregulations on
the use ofplastics

servicesderived frompetroleum

Changes in
consumer
behavior

Increased
environmental
awarenessamongconsumers
leads to a
decline insales due toconsumer
defection fromproducts thathave beenslow torespond to theenvironment
and adecrease in
the adoptionof suchproducts byretailers

to reduce CO₂ emissions by
30%*1 by 2030 and to achieve• Establish more efficient logistics
system/transport and deliveries
with fewer environmental
impacts(improve loading rate using
modal shift and joint deliveries
with other companies, design
product specifications for highloading rates, and introduce
demand forecasting using AI for
optimal inventory allocation andupgrade supply operations, etc.)• Promote raw materials

procurement in consideration of
the environment in line with
Procurement Policy andSupplier Guidelines• Promote initiatives aimed at a
25% reduction in plastics usage
for in Jelly products by 2030*3• Expand the use of biomass
plastics• Promote initiatives aimed at100% sustainable procurementof cacao beans, palm oil andpaper by 2030*4

CategorySub-

Risk factors

category
Physical
risks

Acute

Impact on

Response

operations
Risingseverity and

Loss ofopportunities

frequency ofand decrease

extremein sales due

weather, suchas cyclones

to thesuspension ofand flooding

procurement,
production,
logistics, andsales
activities
caused bydamage to• Continuously review BCP for

natural disasters and promote
BCM• Design buildings and electricalequipment at the time of
manufacturing base relocationor new establishment based on
hazard map• Decentralize manufacturingbases of mainstay products• Purchase raw materials frommultiple suppliers (or multiple
sites)

factories,
warehouses,
andemployees
due toextremeweather,
disruption oflogistics, etc.
Chronic• Promote raw materials

Changes inrainfall

Rising raw
material andpatterns andextremedevelopment
costs due tothe environment in line with
Procurement Policy andchanges inweatherpoor crop
quality andpatterns

reduced yieldcaused by• Promote initiatives aimed atchanges inweatherpatterns andfrequent
occurrencesof extreme
weatherprocurement in consideration of

Supplier Guidelines

100% sustainable procurementof cacao beans, palm oil andpaper by 2030*4• Purchase raw materials frommultiple suppliers (or multiple
sites)• Strengthen collaboration with
suppliers and increase
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

Subcategory

Resource
efficiency

Development
and use of
efficientproduction
anddistribution
processes

Declining manufacturing andtransport costs due todevelopment of efficientmanufacturing and distribution
processes• Promote efficient production

Products

Changes in

Rising demand for eco-friendly

andservices

consumerpreferences

products amid increasing
environmental awareness among
consumers including GenerationZ• Implement “One Chocolate for

Adaptation toclimateRising demand for in Jelly andfrozen desserts due to global
warming• Increase sales of in Jelly andSubstitution/
Diversificationof resources

Increasing capacity of operations
under various conditions from
review ofsubstitution/diversification of raw
materials• Consider substitution andIncreased trust in supply chain
and fewer opportunity loss due toformulation of resilience plan
(BCP)

• Continuously review BCP for

Resilience

Risk factors

Impact on operations

activities by rebuilding the
production system and creating
smart factories*5• Promote initiatives aimed at
70% reduction in food loss andwaste by 2030*6• Establish more efficientlogistics system/transport anddeliveries with fewer
environmental impacts

One Smile” campaign*7• Develop eco-friendly products

frozen desserts

diversification of raw materials
based on climate change risks

natural disasters and promote
BCM*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

Conserving the Global Environment

Related information
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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

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.

Reduction of the Plastics: Long-Term Targets

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

Goal for 2030

Provision of Safe andReliable Products

Reduce the plastics used in in Jelly products by 25%*1*2

Diversity and Inclusionof People*1 Scope: Amount of plastics used in packaging materials

Human Resource*2 intensity; compared to FY2020/3; including replacement with biomass plastics

Development

Environmental Initiatives in the Containers andPackaging of Major Brands

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

Initiatives

Current initiatives (includes tentative items)

Achieving Sustainable
Value Chains

Reduce weight and volume of

Reduce the amount of plastic used in the packaging of products

plastic

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.

Promotion of CSR Supply

Promote recycling

Promote collecting and recycling of disposed containers andpackaging.

Waste

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

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 weight

Conserving the Global
Environment
Response to Climate
Change Issuesof plastic cap and straw by approximately 9% (approximately 70 tons per year) compared to the conventional level.

Information Disclosure

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

Following the TCFD

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

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
Indices and Awards

Sustainability Policies& Guidelines
Integrated Report

Efforts For The Use Of Sustainable Paper(for product packaging)

GRI Standards

Procurement of Sustainable Raw Material: Paper (for Packaging Product)

IR Library

ESG Data: Sustainable Raw Material Ratio, etc.

Conserving the Global Environment
Response to
Climate Change
IssuesManagement ofEnvironmental
Pollutants

Effective Use of
Water Resources

ESG Data

Biodiversity

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 promotebusiness activities that effectively assess water stress* and utilize water resources. Our Group is working to reduce

Identifying thethe use of water resources by recycling cooling water for equipment and reducing raw materials waste, including

Materiality

water used for preparations.
We will identify regions facing high water stress and consider possible actions by conducting water withdrawal
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.
* 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 ㎥.

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 that

ESG Data: Details of the Water Resources Consumption

are Diverse and Dynamic

Third Party Guarantee

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

Conserving the Global Environment

Information Disclosure
Following the TCFD
Recommendations

Response to
Climate Change
IssuesPromotion ofEnvironmental
Consideration in
Containers andPackaging

Promotion of Environmental

Biodiversity

Consideration in Containers
and Packaging
Effective Use of Water
Resources
Biodiversity

Management ofEnvironmental
Pollutants

Management ofEnvironmental Pollutants

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

Sustainability Policies& Guidelines
Integrated Report
ESG Data
GRI Standards
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.

Biodiversity Conservation Initiatives
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

Sustainability at
Morinaga Group
Sustainability
Management
Identifying theMateriality
Stakeholder
Engagement
Contributions to Healthy
Lives of People around
the World
Contribute to “Health ofMind, Body, andEnvironment”

Membership in RSPO

Corporate Citizenship
Provision of Safe andIn October 2019, Morinaga & Co., Ltd. joined the Roundtable on Sustainable Palm Oil (RSPO) and took the first

Reliable Products

steps towards the use of RSPO-certified oils.
Procurement of Sustainable Raw Material: Palm Oil

Diversity and Inclusionof People
Human Resource
Development

Use of FSC®-certified paper
We aim to promote the shift to FSC®-certified paper sourced from well-managed forests and other sources andexpand the scope of its use in sequence.
Procurement of Sustainable Raw Material: Paper (for Packaging Product)
ESG Data: Sustainable Raw Material Ratio, etc

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

Achieving Sustainable
Value Chains
Promotion of Sustainable
Raw Material Procurement

Sustainable cacao beans
We have started using Cocoa Horizons-certified raw materials in certain products.
Procurement of Sustainable Raw Material: Cacao Beans

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

Conserving the Global Environment

Change Issues
Information Disclosure
Following the TCFD
Recommendations
Promotion of Environmental
Consideration in Containers
and Packaging
Effective Use of Water
Resources
Biodiversity
Management ofRelated information
ESG Data

Environmental Pollutants

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

Sustainability Policies& Guidelines
Integrated Report
ESG Data
GRI Standards
IR LibraryHome > Sustainability at Morinaga Group > Conserving the Global Environment > Management of Environmental Pollutants

Management of Environmental Pollutants
Basic Stance

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

Management of Environmental Pollutants and Promotionof their Reduction
Initiatives to reduce air pollutant emissions

Sustainability
Management
Identifying theMateriality
Stakeholder
Engagement

In order to promote the reduction of NOx and CO , we have replaced all boilers in our factories with those that use

Contributions to Healthy

city gas as fuel. We also request our business partners to stop idling their vehicles in our factory premises.We

Lives of People aroundhave been promoting reduction of the environmental impact of commercial vehicles.

the World
Contribute to “Health ofESG Data: Emissions of NOx and CO2, etc.

Mind, Body, andEnvironment”
Corporate Citizenship

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

Provision of Safe andReliable Products

Diversity and Inclusionof People
Human Resource
Development

and training; measures for the latter include equipment maintenance and investments in the renewal or

Fostering Organizations that

improvement of facilities.

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

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

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

Promotion of Sustainable

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

Raw Material Procurement“Act on Confirmation, etc. of Release Amounts of Specific Chemical Substances in the Environment andPromotion of CSR Supply

Promotion of Improvements to the Management Thereof” (the PRTR Act).

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

Conserving the Global Environment

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

Environmental Pollutants

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

Sustainability Policies& Guidelines
Integrated Report
ESG Data
GRI Standards
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
corporate value.

Sustainability at
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.)

Management
Identifying theMateriality
Stakeholder
Engagement
Contributions to Healthy

3. Human rights management

Lives of People around

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

the World

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

Contribute to “Health ofMind, Body, andMain expected opportunities and risks

Environment”
Corporate Citizenship<opportunities>

Provision of Safe and・Increasing management efficiency and corporate value

Reliable Products

・Acquiring trust from countries and regions where we operate
・Increasing ability to promote and implement management strategy

Diversity and Inclusion

・Improving productivityof People

・Growing business opportunities from innovation

Human Resource

・Increasing social trust and corporate value

Development<risks>・Declining evaluations from capital markets
・Damage to social trust, brand value and corporate value

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

Main Actions Ahead of 2030
1. Build a highly transparent and efficient governance system

Achieving Sustainable

2. Promote globalization of management foundation

Value Chains

3. Reinforce human rights management

Promotion of Sustainable

4. Evolve business operations using DX
5. Increase ESG information disclosures

Response to SDGs

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

To achieve our Purpose and the 2030 Vision, we will need to enhance our sustainability as a corporation, respondquickly and appropriately to changes in the external environment, and flexibly engage in business operations. The

Information Disclosure
Following the TCFD
Recommendations

Morinaga Group will steadily work on initiatives for the following five themes through monitoring by the

Promotion of Environmental

management meeting and ESG Committee.

Consideration in Containers
and Packaging
Effective Use of Water

Action Themes

Resources

1.Achieve highly transparent
and efficient governance

We will achieve effective corporate governance that is highly
transparent 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

2.Globalize managementfoundation

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.

3.Establish human rights
management

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.

Biodiversity
Management ofEnvironmental Pollutants

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

4.Promote business
operations using DX

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.

5.Expand disclosures of ESG
information

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.

Sustainability Policies& Guidelines
Integrated Report
ESG Data
GRI Standards
IR LibraryRelated information
ESG Data

Home > About Us > Corporate GovernanceCorporate GovernanceCorporate GovernanceCompliance

Risk Management

Human Rights Management

Corporate Governance Basic Policy
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

About Us

Message from the
President
Corporate Principles
Our episode based on
altruism
Code of Conduct
Standards of Behavior

stakeholders.

(1) Positioning of Stakeholders
To enable us to fulfill our social responsibility in all areas of our business activities, we are committed tomaintaining and further developing strong relationships with all stakeholders, who sustain our company, andachieving coexistence with society and sustainable growth in accordance with corporate principles and the code of
conduct.

Corporate Profile
Introduction ofBusiness Fields
Business Office Guide
Group Network(2) Management Monitoring Functions
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.

(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
member companies.

Corporate Development
and History
Meiji/Taisho Eras
Showa Era
Heisei/Reiwa Eras

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

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

＜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 Committee, a forum to
discuss matters concerning Directors’ personnel and remuneration matters.

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

CSR Issues Discussed at the Board of Directors
In FY2022/3, the Board of Directors discussed the following matters related to CSR:

- Risk management
Implementation of risk management and challenges in FY2021/3; activity plan for the current year

- Compliance
Compliance efforts and challenges in FY2021/3; activity plan for the current year

- Customers’ voice and feedbac
The Board discussed response to customers’ opinions and requests and associated issues- Assessment of the Board s effectiveness
The Board discussed whether it was functioning effectively based on third-party assessments and agreed on
the issues towards improvement.

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

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

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

（2）Content of Executive Remuneration Systema.

Level of executive remuneration and structure

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

Matters concerning performance-linked remuneration

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

Content of non-monetary remuneration

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

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

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

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

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

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

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

Evaluation of the Effectiveness of the Board of Directors（1）Method of analysis and evaluation
In regard to the effectiveness of the Board of Directors as a whole, the Company conducted a survey of all
Directors including Outside Directors, and all Statutory Auditors including Outside Statutory Auditors, fromFebruary to March this year, as it does each year. The survey covered the composition, operation, and agenda of
the Board of Directors, the nomination and remuneration of senior management, risk management, dialogue withshareholders, etc., systems to support the Board of Directors, and issues indicated in previous evaluations of theBoard of Directors. The Board of Directors conducted an exchange of opinions on the results of the survey, andeach Director executed an evaluation.
In addition, the results of the survey were analyzed and evaluated by a third-party law firm, in order to provide anexpert and objective opinion, and the evaluation of the Board of Directors was discussed and decided at a meetingof the Board of Directors held in April and May 2022, with reference to this third-party analysis and evaluation.

（2）Result of the evaluation
As a result of analysis and evaluation by the third-party law firm, the Company’s Board of Directors wasdetermined to be functioning effectively in fiscal 2021, in light of the Companies Act and the Corporate Governance
Code, without any significant dysfunction or structural deficiency, etc. Based on this evaluation, the Company
recognized that the Board of Directors was effective and functioning effectively in line with the basic views on
corporate governance, etc. of the Company.

（3）Initiatives for improvement
Based on the evaluation of the effectiveness of the Board of Directors in fiscal 2021, the Company recognizes thatcertain improvements have been made with respect to the issues identified in the previous year's evaluation of theeffectiveness of the Board of Directors, (a)the optimization of the composition of the Board of Directors byincreasing the ratio of outside directors, (b)the implementation of sufficient discussions on further risk
management, and (c)the consideration of ways to strengthen the Board's function as a monitoring board.

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

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 > About Us > Human Rights Management

Human Rights Management
Corporate GovernanceCompliance

Risk Management

Human Rights Management

About Us

Message from the

Basic StancePresident

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

Corporate Principles
Our episode based on
altruism
Code of Conduct
Standards of Behavior

labor and forced labor in the supply chain of raw materials procurement partners.

Corporate Profile
Introduction ofMorinaga Group Human Rights Policy

Business Fields
As a member of the international community, the Morinaga Group respects fundamental
human rights, undertaking sincere business activities that do not tolerate human rights

Business Office Guide

violations.

Group Network

1. Respect for human rights and prohibition of discrimination

Corporate Development

We respect fundamental human rights, and will not discriminate in any way based on a
person’s race, gender, nationality, religion, ideology, age, or physical characteristics, orfor any other reason.

and History
Meiji/Taisho Eras
Showa Era
Heisei/Reiwa Eras

2. Prohibition of harassment
We will not participate in power harassment, sexual harassment, or any other behavior
whatsoever that injures human dignity.

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

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

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

(Established: May 2018)

Corporate
GovernanceIn April 2022, we signed and registered for the United Nations Global Compact initiative, and have received
guidelines for human rights management under the 10 principles in the Compact's four fields.

Currently, through the “One Chocolate for One Smile” campaign, we are learning from NPOs and NGOs about thesituation of child labor in cacao producing countries and conducting exchange of views. We are also working to
identify and address human rights issues in the supply chain, including deepening understanding of those in palm
oil producing areas through our participation in the RSPO.
Plan International
ACE (Action against Child Exploitation)
We will report on our initiatives on human rights management in our Integrated Reports and by other means.
Integrated Report

Consideration for Employees’ Human Rights
Anti-harassment training
According to our pro-human rights policy, we set the elimination of harassments as a goal of our complianceactivities. In our compliance training sessions, we continuously provide educational programs designed to preventand raise awareness about power, sexual, and other harassments.
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.

Identifying harassments through compliance survey
The Morinaga Group conducts a compliance survey in every December, targeting all employees working atdomestic Group companies (the number of respondents to the survey conducted in December 2021: 3,542), withthe view to determine the level of compliance in the Group on a regular basis. In the survey, we attach a special
attention to harassing behaviors and include questions asking whether the respondent was directly harassed or
saw or heard of a harassing behavior in the last 12 months and in any past year, respectively. Answers to thesequestions are tabulated separately so that we can have a detailed view of the Company’s level of compliance.
We also ask questions about the corporate culture that respects for workplace compliance as well as the
respondent’s view on the Company’s degree of engagement in the compliance management, in an effort to identify
our employees’ level of compliance awareness. The summary of the survey results is fed back to all the survey
respondents to share the understanding about the extent of the Group’s compliance.

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

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

Online anti-harassment trainingHome > Sustainability at Morinaga Group > Indices and Awards

Indices and Awards
Inclusion in ESG Indices
・The MSCI Japan Empowering Women Index

Sustainability at
Morinaga Group
Sustainability

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).

Management

・FTSE Blossom Sector Relative Japan Index

Stakeholder

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.

Identifying theMateriality

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

Diversity and Inclusionof People
Human Resource

・The Sompo Sustainability Index, an index
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 the index,
which is used in the company's sustainable investment.

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

Achieving Sustainable
Value Chains
Promotion of Sustainable
Raw Material Procurement

・CDP Climate Change 2021
Morinaga & 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.

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

・The Platinum Kurumin certification
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
supporting 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.

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

・The Certified Health and Productivity
Management Organization
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 fiveconsecutive years since 2018 as a "Certified Health &Productivity Management Outstanding Organization" in thelarge enterprise category.

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

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

Sustainability Policies & Guidelines
We conduct our corporate activities while connecting with various stakeholders torealize our purpose: “The Morinaga Group will continue to create healthy foods thatcan be enjoyed beyond generations, thereby bringing smiles to the faces of people
around the world now and in the future.”
Our basic approach and guidelines for our corporate activities are clearly stated in our“Policy” and “Guidelines.”

Sustainability at
Morinaga Group
Sustainability
Management

By adhering to these principles and working together with trust earned from ourIdentifying thevarious stakeholders, we aim to achieve sustainable corporate growth and contribute

Materiality

to the creation of a sustainable society, where everyone can lead happy lives.

Stakeholder
Engagement

Representative Director President

Contributions to Healthy
Lives of People around

Corporate Philosophy

the World

Code of Conduct Standards of Behavior

Contribute to “Health ofMind, Body, andSustainability Policies
Sustainability Management

Environmental Policy

SocialHuman Rights Policy

Reliable Products

Diversity and Inclusionof People
Human Resource

Procurement Policy

GovernanceCorporate Citizenship
Provision of Safe andSustainability Policy​

Environment

Environment”

Development

Quality Policy

Fostering Organizations that

Diversity and Inclusion Policy

Achieving a Healthy andCorporate Citizenship Policy

Environment

are Diverse and Dynamic

Tax Policy

Worker-friendly Workplace

Achieving Sustainable
Value Chains

Bribery Prevention Policy

Promotion of Sustainable
Raw Material Procurement
Promotion of CSR Supply

Guideline

Chain Management
Reduction of Food Loss and

Raw Material

Guidelines for the Procurement of Cacao Beans

Waste
Promotion of Waste

Guidelines for the Procurement of Palm Oil

Reduction
Co-existence and co-

Guidelines for the Procurement of Paper

prosperity with local
communities

Supplier

Supplier Guideline* We formulate policies, guidelines, and declarations by deliberating at ESG commitees and similar meetings, and report to the Boardof Directors.

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
Indices and Awards

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

Integrated Report
Integrated Report
2021

Sustainability at
Morinaga Group

Coverpage Period
April 1, 2020 through March 31, 2021

Sustainability
Management
Identifying theFull report

Materiality

Integrated Report（All pages, 2 pages spread）（23.3MB）

Stakeholder

Integrated Report（All pages, single page）（23.4MB）

Engagement

Parts
Front Cover～Profile（6.3MB）
Strategy Section（14.8MB）
Sustainability Section（7.7MB）
Governance Section（1.7MB）
Financial Section（0.5MB）

Contributions to Healthy
Lives of People around
the World
Contribute to “Health ofMind, Body, andEnvironment”
Corporate Citizenship
Provision of Safe andReliable Products* There is a correction in the page 2 of Integrated Report 2021.
Please click here for more details. (February 25,2022)

CSR Report​

Diversity and Inclusionof People
Human Resource
Development
Fostering Organizations that

CSR Report 2020are 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
Indices and Awards

Sustainability Policies& Guidelines
Integrated Report
ESG Data
GRI Standards
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 theinformation is enhanced.
ESG Data Book
FY2021 Third Party Independent Assureance Statement：GHG Emmision(Scope 1,2), Total Energy
Consumption, and Water Consumption

ESG Data Back Number

Sustainability at
Morinaga Group
Sustainability
Management
Identifying theMateriality

ESG Data (FY2020)

Stakeholder

ESG Data (FY2019)Engagement

The Previous documents related toThird Party
Independent AssureanceContributions to Healthy
Lives of People around
the World
Contribute to “Health ofMind, Body, andFY2020 Third Party Independent Assureance Statement：GHG Emissions(Scope1,2) , Total Energy
Consumption, and Water Consumption

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

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
Indices and Awards

Sustainability Policies& Guidelines
Integrated Report
ESG Data
GRI Standards
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

Identifying theMateriality
Stakeholder
Engagement
Contributions to Healthy
Lives of People around
the World
Contribute to “Health ofMind, Body, and102-5

Ownership and legal form

Corporate Profile

102-6

Markets served

Corporate Profile

Environment”
Corporate CitizenshipIntroduction of Business
FieldsGroup Network
102-7

102-8

Scale of the organization

Information on employees andProvision of Safe andReliable Products

Diversity and Inclusion

Corporate Profile

of People

ESG Data

Human Resource

ESG Data

Fostering Organizations that

other workers

Development
are Diverse and Dynamic
Achieving a Healthy and

102-9

102-10

Supply chain

Significant changes to theorganization and its supply
chain

Achieving Sustainable Value
ChainsWorker-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

GRI Standards

Disclosures

Medium of publication

Response to Climate
Change Issues
Information Disclosure

GRI 101: Foundation 2016

Following the TCFD
Recommendations

General Disclosures

Promotion of Environmental

102-11

Precautionary Principle orapproach

Achieving Sustainable Value
Chains (Basic Stance)

Consideration in Containers

Promotion of Sustainable
Raw Material Procurement

Effective Use of Water

Conservivng the Global
Environment (Basic Stanceand Environment
Management Sysytem)

Biodiversity

External initiatives

Resources

Management ofEnvironmental Pollutants

Build a Highly Transparent
and Efficient Governance
SystemStrengthening theComplianceFoundation

Risk Management

Build a Highly Transparent

Human Rights Management102-12and Packaging

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

Business Managementand Efficient Governance
SystemHuman Rights Management
Indices and Awards

Sustainability Policies
102-13102-14102-15

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

Statement from senior decision-

Message from the President

ESG Data

maker

Sustainability Policies &Guidelines

GRI Standards

Membership of associations

Key impacts, risks, andRisk Management

opportunities

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

102-16

Values, principles, standards,
and norms of behavior

Corporate Principles
2030 Business Plan/
2021 Medium-TermBusiness Plan
Sustainability Management
Sustainability Policies &Guidelines

102-17

Mechanisms for advice andconcerns about ethics

Compliance102-18Governance structure

Corporate Governance(Corporate Governance
System)Integrated Report

IR Library

GRI Standards

Disclosures

Medium of publication

102-19Delegating authority

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

GRI 101: Foundation 2016
General Disclosuressocial topics

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

102-21

Consulting stakeholders on

Stakeholder Engagement

economic, environmental, andsocial topics
102-22Composition of the highest
governance body and its
committees

Corporate Governance(Corporate Governance
System)102-23Chair of the highest governance

Build a Highly Transparent
and Efficient Governance
Systembodyhighest governance body

Build a Highly Transparent
and Efficient Governance
System102-25

Conflicts of interest

ESG Data

102-26

Role of highest governance

Build a Highly Transparent
and Efficient Governance
System102-24

Nominating and selecting the

body in setting purpose,values,and strategy

Compliance
Sustainability Management
Conservivng the Global
Environment (Basic Stanceand Environment
Management Sysytem)
102-27

Collective knowledge of highest
governance body

Sustainability Management102-28

Evaluating the highest
governance body's performance

Corporate Governance(Evaluation of the Board's
effectiveness)102-29Identifying and managing
economic, environmental, andsocial impacts

Sustainability Management

Effectiveness of risk
management processes

Corporate Governance(Internal Controls)

102-30Identifying the Materiality
Stakeholder Engagement

Risk Management102-31

Review of economic,
environmental, and social topics

Sustainability Management

GRI Standards

Disclosures

Medium of publication

GRI 101: Foundation 2016
General Disclosures102-32>Highest governance body's

Sustainability Managementrole in sustainability reporting
Compliance (Promotion ofCompliance)

102-33

Communicating critical concerns

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

Human Resource
Development

agreements
102-42

Identifying and selecting
stakeholders

Stakeholder Engagement102-43

Approach to stakeholder
engagement

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 ReportGRI Standards

Disclosures

Medium of publication

GRI 101: Foundation 2016
General Disclosures102-53

Contact point for questions

Integrated Report

regarding the 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
and its Boundary

Sustainability Management

Material topics
103: Management
Approach (2016)

Identifying the Materiality
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

201: Economic
Performance (2016)

103-3

Evaluation of the management
approach

Indices and Awards

201-1

Direct economic value
generated and distributed

Integrated Report

201-2

Financial implications and otherrisks and opportunities due toclimate change

GRI Standards

Disclosures

Medium of publication

GRI 101: Foundation 2016
General Disclosures
201-3

Defined benefit plan obligations
and other retirement plans

202: Market

201-4

Financial assistance received
from government

202-1

Ratios of standard entry level

Presence (2016)wage by gender compared to
local minimum wage
202-2

Proportion of senior
management hired from thelocal community

203: Indirect203-1

Economic Impacts(2016)

Infrastructure investments andservices supported

203-2

Significant indirect economic
impacts

204: Procurement
Practices (2016)

204-1

Proportion of spending on local
suppliers

205: Anti-corruption(2016)

205-1

Operations assessed for risks
related to corruption

205-2

Communication and training

Bribery Prevention Policy

about anti-corruption policies
and proceduresCompliance (ComplianceTraining Sessions)

206: Anticompretitive

205-3

Confirmed incidents ofcorruption and actions taken

206-1

Legal actions for anticompetitive behavior, anti-trust,

Behavior (2016)
207: Tax (2019)

301: Materials (2016)

302: Energy (2016)

ESG Data (Governance)and monopoly practices
207-1

Approach to tax

207-2

Tax governance, control, andrisk management

207-3

Stakeholder engagement andmanagement of concerns
related to tax

207-4

Country-by-country reporting

301-1

Materials used by weight orvolume301-2

Recycled input materials used

301-3

Reclaimed products and theirpackaging materials

302-1

Energy consumption within theorganization

ESG Data (Environment)

ESG Data (Environment)

GRI Standards

Disclosures

Medium of publication

GRI 101: Foundation 2016
General Disclosures
302-2

Energy consumption outside ofESG Data (Environment)

the organization
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: Water And
Effluents (2018)

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)

GRI Standards

Disclosures

Medium of publication

GRI 101: Foundation 2016
General Disclosures
305-5

Reduction of GHG emissions

305-6

Emissions of ozone-depleting

Response to Climate
Change Issues

substances (ODS)
305-7

Nitrogen oxides (NOx), sulfur
oxides (SOx), and other

ESG Data (Environment)

significant air emissions
306: Waste (2020)

306-1

Waste generation and significant
waste-related impacts

Promotion of Waste
Reduction
Reduction of Food Loss andWaste

30: Environmental
Compliance (2016)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)

307-1

Non-compliance withenvironmental laws and

ESG Data (Environment)

regulations
308: Supplier

308-1

Environmental
Assessment (2016)

New suppliers that werescreened using environmental
criteria

308-2

Negative environmental impacts
in the supply chain and actions
taken

401: Employment(2016)

401-1

New employee hires andemployee turnover

ESG Data

401-2

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

Fostering Organizations thatare Diverse and Dynamic

401-3

Parental leave

Fostering Organizations thatare Diverse and Dynamic
ESG Data (Society)402:
Labor/Management
Relations (2016)

402-1

Minimum notice periods
regarding operational changes

403: Occupational
Health and Safety

403-1

Occupational health and safety
management system

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

GRI Standards

Disclosures

Medium of publication

GRI 101: Foundation 2016
General Disclosures
403-2

Hazard identification, risk
assessment, and incident
investigation

403-3

Occupational health services

403-4

Worker participation,
consultation, andcommunication on occupational

Achieving a Healthy andWorker-friendly Workplace
Environment

health and safety
403-5

Worker training on occupational
health and safety

403-6

Promotion of worker health403-7

Prevention and mitigation ofoccupational health and safety

Achieving a Healthy andWorker-friendly Workplace
Environment
Achieving a Healthy andWorker-friendly Workplace
Environment

impacts directly linked bybusiness relationships
403-8

Workers 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 and403-10Work-related ill health404-1

Average hours of training per

Education (2016)

year per employee
404-2

Programs for upgrading
employee skills and transition
assistance programs

405: Diversity andEqual Opportunity(2016)

404-3

Percentage of employees
receiving regular performanceand career development reviews

405-1

Diversity of governance bodies
and employees

Human Resource
Development

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

GRI Standards

Disclosures

Medium of publication

GRI 101: Foundation 2016
General Disclosures
407: Freedom of

407-1

Operations and suppliers in

Association andwhich the right to freedom ofCollective
Bargaining (2016)

association and collective
bargaining may be at risk

408: Child Labor

408-1(2016)

409: Forced orCompulsory Labor

409-1(2016)
410: Security

410-1

Practices (2016)

Human Rights Management

significant risk for incidents of

Promotion of Sustainable
Raw Material Procurement

child labor

Human Rights Management

Operations and suppliers at
significant risk for incidents of

Promotion of Sustainable
Raw Material Procurement

forced or compulsory labor

Human Rights Management

Operations and suppliers at

Security personnel trained inhuman rights policies orprocedures

411: Rights ofIndigenous Peoples(2016)

411-1

Incidents of violations involving
rights of indigenous peoples

412: Human Rights

412-1

Operations that have been

Assessment (2016)

Human Rights Management

subject to human rights reviews
or impact assessments
412-2

Employee training on humanrights policies or procedures

412-3

Significant investment

Human Rights Managementagreements and contracts that
include human rights clauses orthat underwent human rights
screening
413: Local
Communities (2016)413-1

Operations with local community
engagement, impact
assessments, and development
programs

413-2

Operations with significant
actual and potential negative
impacts on local communities

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(2016)

416-1

Assessment of the health andsafety impacts of product andservice categories

414: Suplier Social
Assessment (2016)

Co-existence and coprosperity with local
communities
Corporate Citizenship

Promotion of CSR Supply
Chain Management

Provision of Safe andReliable Products

GRI Standards

Disclosures

Medium of publication

GRI 101: Foundation 2016
General Disclosures
416-2

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

417: Marketing and

417-1

Labeling (2016)

Requirements for product andservice information and labeling

417-2

Provision of Safe andReliable Products

Incidents of non-complianceconcerning product and service
information and labeling

417-3

Incidents of non-complianceconcerning marketing
communications

418: Customer

418-1

Privacy (2016)

Substantiated complaints
concerning breaches ofcustomer privacy and losses ofcustomer data

419: Socioeconomic

419-1

Compliance (2016)

Privacy Policy

Non-compliance with laws andregulations in the social andeconomic area

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