Can the information
be easily understoodby individual
shareholders?

Are the quality
assurance systems
sufficientand effective?

What are the key
considerations forprospective business
relationships?

Asahi Breweries GroupCSR REPORT
Corporate Social Responsibility Report

2005
What arethe relationships
with local
communities?

Is the employee
performance systemfair and unbiased?
What is being done
to care forthe environment?

CONTENTS
Editorial Policy
Executive Message
Corporate Philosophy
and Guidelines for Corporate Activity
Outline of the Asahi Breweries Group
President’s Message
Corporate GovernanceCompliance

Editorial Policy

1
3
4
5
7
11
13

Activity Report 2004
Special Features: Six Priority Initiatives
Pursuit of Quality
Encouraging Moderate &Responsible Drinking

For Consumers and Citizens
Asahi Breweries’ Quality Assurance System
From Customer Protection Perspectives
Moderate & Responsible Drinking and Health

For Business Partners
With SuppliersWith Distributors

For Shareholders and Investors
Returning Value to Shareholders
Communication with
Shareholders and Investors
Evaluations by External Review Organizations

For Employees
Equality and Fairness in Employment
Labor Health and Safety
Training and Education
Creating a Pleasant Work Environment

For Local Communities
Social and Cultural Contributions
Local Community Activities
and Collaborations

For the Global Environment
Environmental Impact of Business Activities
Environmental Management
Environmental Performance
Prevention of Global Warming
Conserving Water Resources
Waste Reduction
Other Activities
Asahi Breweries’ Integrated
Environmental Burden Index, AGE

17
19
22
25
26
29
32
33
34
36
37
38
38
40
41
42
43
44
45
47
48
50
51
52
53
56
57
59
61
63
64

Measures Taken in Response to Third-Party Opinions
on Asahi Breweries Group CSR REPORT 2004
65
Third-Party Opinion, Editor’s Note
66
Disclaimer
In addition to objective information on the past and present status of Asahi
Breweries, Ltd. and its group companies, this report also contains plans,
perspectives, and forecasts based on the corporate philosophy andmanagement strategies as of the date of publication. These forecasts are
based on information available at the time of publication, and therefore theactual status and outcome of future business activities may differ from these
forecasts as a result of changes in the social, economic, or businessenvironment.

In order to increase public understanding of the Asahi
Breweries Group’s CSR activities and facilitate accessto information, this year we are providing reports on our
CSR activities through the following three media.
Asahi Breweries Group CSR REPORT 2005
The printed report presents an overview of the Asahi
Breweries Group’s CSR activities from social, economicand environmental perspectives, as well as detailed
actions. It is organized according to the respective
interests of various stakeholders, including consumers,
business partners, shareholders, local communities, andemployees. Data is also provided for major performanceareas. This year, we have also included a number offeature articles to spotlight specific priorities of the Asahi
Breweries Group.

Web Site & Pamphlet (in Japanese)
In addition to the content of Asahi Breweries Group CSR
Report 2005, the Web site contains detailed performancedata. Also, the pamphlet for general readers, written ineasy-to-understand style, is available.

Scope of this Report
Reporting Scope
In general, the scope of this report is the activities of Asahi BreweriesLtd., although some of reported activities involve the entire Group orGroup companies.
Report Content
Policies, plans, objectives, efforts, and progress are reported for thefollowing three areas: finance, social contributions, and the environment.
Reporting Period
This report primarily covers fiscal year 2004 (January 1, 2004 to
December 31, 2004) as well as the history and activities as of the
publication date, future perspectives, and plans.

References Guidelines
This report is based on to the Global Reporting Initiative’s (GRI*)
Sustainability Reporting Guidelines 2002 and the Ministry of theEnvironment’s Environmental Reporting Guidelines (2003 edition).

* GRI: Founded in 1997, GRI develops and promotes globally applicable
Sustainability Reporting Guidelines.

Publication Date
Current Edition: September 2005
Previous Edition: September 2004
Next Edition: August 2006

Satisfying Customers
with

Great
TastesThe Asahi Breweries Group considers all stakeholders as ‘‘customers’’
and therefore pursues customer satisfaction not only through its products,
but in every business situation.
‘‘Satisfying Customers with Great Tastes’’ is also
the fundamental philosophy behind Group-wide CSR activities.

Executive Message

Shigeo Fukuchi

Kouichi Ikeda

Chairman of the Board and CEO,Asahi Breweries, Ltd.

President and COO,
Asahi Breweries, Ltd.

がロータリクラブの誕生です
友人と語らって月日、第1回の会合を開いた

Every Stakeholder Is Our Customer
The daily conduct of activities of the Asahi Breweries Group is guided by the philosophyof bringing greater enjoyment and prosperity to people’s lives through our Food and
Health Businesses.
We believe that corporate social responsibility (CSR) lies at the heart of our corporate
activities and is essential for our continued acceptance by society as well as for theongoing enhancement of corporate value. With the understanding that all stakeholders
are “customers” who support Asahi Breweries Group, we actively promote CSR
activities to attain even higher customer satisfaction.
In fiscal year 2004, we achieved record levels in operating income, ordinary income,and net income, largely due to the support of all our customers. We are deeply gratefulfor the trust and loyalty that customers have expressed for not only our products, but
for our corporate activities as well. To deepen this trust we intend to increase corporate
value by providing customer satisfaction in every aspect of our operations.
This CSR report was designed to summarize our efforts during 2004. We hope that it
assists readers in understanding our vision and our actions. And we welcome theopinions and feedback of our readers as important considerations in the planning of
future CSR activities.

3 CSR REPORT 2005

Corporate Philosophy
The Asahi Breweries Group aims to satisfy customers with the highest levels of
quality and integrity, while contributing to the promotion of healthy living andthe enrichment of society worldwide.

Guidelines for Corporate Activity
Customer satisfaction•Provide high quality and abundantly original products and services with customer
satisfaction as the cornerstone to all corporate activities.
•Propose new value to meet our customers’ expectations by revolutionizing our thinking
and behavior.

Safety and environmental responsibility•Bear full environmental responsibility and ensure the safety of all our corporate
activities, ever aspiring to preserve our beautiful earth and be gentle to its people.
•Promote resource renewal and energy conservation through recycling and waste
reduction.

Fair, open corporate ethics•Win customers’ trust through corporate behavior that is based on respect for soundand fair ethics.
•Value the importance of communication with society and actively facilitate mutualcomprehension via the disclosure of information.

World-class corporate activities•Have a global vision and strive to follow international standards for corporate behavior.
•Take on global business opportunities on the world-stage.

A corporate culture rich in ideas and vitality•Create a corporate climate where the rich ideas and ambitious spirit of each memberof society can be leveraged.
•Create a corporate climate that abounds in activities where individuals can think andact for themselves.

Original and responsive corporate action•Stay ahead of change and always strive to be forward-minded and swift in corporate
action.
•Aim to share impressions with society through inventive concepts and individual
behavior.

Independent and integrated management•Aim for corporate management where each company thrives from its own
independence.
•Aim for group management that leverages our combined strengths.

Continued, high-quality growth•Aim for efficient use of managerial resources and productive management.
•Meet everyone’s expectations, from customers and shareholders to employees,
through sustained and high quality growth.

Supporting the Global Compact
The Global Compact (GC) was proposed in January 31, 1999 by Kofi Annan, the secretary-general of the United
Nations, at an international economic forum. The GC, as revised in June 2004, calls for participating companies to“embrace and enact” within their sphere of influence a total of ten principles in the following four areas: human rights,
labor standards, the environment, and anti-corruption. The goal of the GC is to actively effect world-wide change
through incorporating and acting on these principles in every aspect of corporate operation.
As of April 2004, over 1,300 companies, international labor organizations, and citizens organizations worldwide aretaking part in this effort. Asahi Breweries announced its participation in June 2002.

CSR REPORT 2005

4

Outline of the Asahi Breweries GroupThe Asahi Breweries Group is always challenging
itself to bring greater enjoyment and prosperity
to people’s lives through our Food and
Health Businesses.

Soft Drink Business

Overseas Business

Production and salesof canned coffee, teasand other soft drinks.

Production and sales ofbeer in North America,
Europe, China andSoutheast Asia, alongwith Oceania. Soft drinks
in some countries.

Food andPharmaceuticalBusiness

Alcoholic Beverage
Business

Production and sales ofhealth-related products,
yeast extract, functional
foods, deodorizers, andfreeze-dried items.

Production and sales of beer,
happoshu (low-malt beer), zasshu(no-malt beer), low-alcohol
beverages, whisky and spirits,wine, and shochu.

Raw Materials
Business
Production and sales ofvarious kinds of malt
including raw materials forbeer, yeast material, rawmaterial for bread, andbarley tea.

5 CSR REPORT 2005

Restaurant
Business
Management ofrestaurants, primarily
located in the Tokyo area
and the Kinki region ofwestern Japan.

Service Business
Logistics BusinessTransportation of products
and provision of otherlogistics services for the
Asahi Breweries Group.

Provision of maintenanceservices for draft beerequipment, support for
promotions, and brewery
tours.

Corporate Outline
Name of the Reporting Organization:
Asahi Breweries, Ltd.

Contributing toFood and Health asa Corporate Group
Under the philosophy of satisfying customers with thehighest levels of quality and integrity while contributing to
the promotion of healthy living and the enrichment ofsociety worldwide, Asahi Breweries, Ltd. seeks toachieve further prosperity for the entire group. Group
companies build on the strength of the alcoholic
beverage business managed by Asahi Breweries, Ltd.
For example, Asahi Soft Drinks Co., Ltd. engages in thesoft drink business, offering canned coffee, Japanese tea,
and other soft drinks, while other Group companies,
including Asahi Food & Healthcare Co., Ltd., market
health foods and nutritional supplements in the food andpharmaceuticals business. In addition, in our beer andsoft drink businesses, our dynamic collaborations extend
beyond Japanese makers to those in China and other
Asian countries.
The Asahi Breweries Group will continue to pursue
customer satisfaction by providing high quality products
and services in the areas related to Food and Healthbusinesses. Through the cooperation of Group
companies in product development, logistics, sales andother arenas, we will grow as a corporate group that isneeded and trusted by customers worldwide.

Head Office Address:
1-23-1 Azumabashi, Sumida-ku, Tokyo 130-8602(Business Address)
3-7-1 Kyobashi, Chuo-ku, Tokyo 104-8323(Address of incorporation)
Date Founded:
September 1, 1949
Representative:
Kouichi Ikeda, President and COO
Paid-in Capital:
182,531 million yen (as of December 31, 2004)
Total Assets:
1,038,319 million yen (as of December 31, 2004)
Number of Business Units:
1 head office, 9 headquarters (2 headquarters and7 regional headquarters), 15 branches, 47 sales offices,
9 breweries, 6 laboratories, 3 overseas offices(China, U.S.A., U.K.)
Subsidiaries/Affiliates:
53 consolidated subsidiaries,
1 non-consolidated subsidiary under equity method,
16 affiliated companies under equity method

Consolidated

Net sales(¥ billion)
1,500
1,200

1,433.4

1,399.1

1,121.9

1,054.6

Non-consolidated(Fiscal years ended December 31)
1,375.3

1,400.3

1,107.0

1,093.8

1,444.2

1,116.4

900
600
300
0

2000

2001

2002

Net income

2003

2004

(Fiscal years ended December 31)(¥ billion)
30

28.2

30.6

23.2

20
13.6
10

7.3

10.6

14.8

16.4

0

Total Alcoholic
Beverage Provider

-10

-9.7

-20

-15.7

2000

2001

2002

Total assets

2003

2004

(As of December 31 of each year)(¥ billion)
1,500

With Asahi Super Dry, our mainstay beer product, andthe popular Asahi Honnama happoshu (low-malt beer)
series, Asahi Breweries enjoys a solid position in the beerand happoshu markets. In addition, driven by ourfundamental vision of constantly pursuing ever-higher
goals, we have enriched our product selection withshochu and low-alcohol beverages.
As a result, Asahi Breweries has nurtured highly
regarded brands in every category of beer, happoshu,
zasshu (no-malt beer), shochu, low-alcohol beverages,
whisky, and wine, and has become a leader in thealcoholic beverage market today.

1,389.8
1,341.1
1,294.7
1,250.8
1,244.4
1,200 1,134.1
1,148.2
1,127.6
1,077.8
1,038.3
900
600
300
0

2000

2001

2002

Number of employees
16,00014,5392003

2004(As of December 31 of each year)
15,07014,567

14,654

15,74912,0008,000
4,000 3,612

3,779

3,995

3,779

3,700

0

2000

2001

2002

2003

2004

CSR REPORT 2005

6

President’s Message

My mission is to enhance the quality of management
through ongoing interactions with customers andrelationships cultivated through effective communications.

How the Asahi Breweries GroupDefines CSR
The Asahi Breweries Group firmly believes that CSR activities enhance
corporate value. We recognize that every stakeholder is a ‘‘customer’’ who
supports Asahi Breweries, including not only the consumers of our products,
but shareholders and investors, suppliers, employees, and local communities
as well. The never-ending cycle of our employees’ interaction with customers,from working to satisfy customers to receiving customer feedback andevaluation, and incorporating what they have learned from customers, is the
CSR process of the Asahi Breweries Group. CSR at the Asahi Breweries

Kouichi Ikeda,
President and COO

Group can be essentially defined as building relations in order to ensure
customer satisfaction-that is, ‘‘CS + R’’ (Customer Satisfaction + Relations).
Moreover, I am convinced that my responsibility as the president is to enhance
the company’s corporate value by guiding the general direction of these efforts
and providing the appropriate level and style of management guidance.

How to Realize “CS + R”

Delivering customer satisfaction is not a simple task. Neither customers nor
society at large remain the same day after day. And, in fact, by adapting tochanges in customers and markets, we have evolved into a total alcoholic
beverage provider and a global company. If we expect solid outcomes today
only because business was successful yesterday, we will fail in meeting our
responsibility and contributing to a society undergoing rapid change. What docustomers and society expect? What action should we take, and how can
we fulfill our responsibility? The Asahi Breweries Group will strive to enhancecustomer satisfaction and corporate value through ongoing public relations
activities, disclosing our current status and the efforts of each Group company,
and providing opportunities for feedback, in which we respectfully heed thevoice of our customers and reflect their comments in our daily business.

7 CSR REPORT 2005

Customers
andCivil Society

Enhanced
Customer Satisfaction

Business
Partners

Customers
Supporting
the Asahi Breweries Group’s
Shareholders/
Corporate Activities

Investors

Employees
Local
Communities

Investor Relations
Tools
Proposaland Information
Disclosure to
Customers

GlobalEnvironment

Sales Promotion
Media
Products

Press Releases

Web Site

The “CS + R” Approach
At the Customer
Relations Office

At Shareholder
Meetings
Through Social
and Cultural
Contributions

At Stores

Customer Feedback
and Opinions

At Breweries

Enhanced
Corporate ValueCSR REPORT 2005

8

President’s Message

Outcome and Issues from 2004

We experienced significant success last year in the Six Priority Initiatives of
Our CSR Activities (p. 10) identified by the Asahi Breweries Group as
necessary for focusing actions and relationships with stakeholders, anddiscovered areas that still need improvement.
In the Pursuit of Quality, we began to collectively improve the vision andstructure of quality assurance through the integrated efforts of Group
companies. In the Compliance with Laws and Ethical Standards, employees
across Japan attended training seminars to gain new insight into the Asahi
Breweries Group Business Ethics Rule. In regard to Environmental
Conservation, the Kyoto Protocol captured international attention as it
formally went into effect in February 2005, and the Asahi Breweries continued
to work toward meeting its goal of reducing total CO2 emissions by 10%
from 1990 levels by 2008.
As for Appropriate Information Disclosure, we appropriately disclosed
information to shareholders, investors, and mass media, and we relied on
specialized committees to continuously improve product labeling and the
responsible expression of advertisement and public interest content. In regard
to Living in Harmony with Local Communities, we actively engaged in culturaland social contribution activities in partnership with local nonprofit
organizations (NPOs). In Encouraging Socially Responsible Drinking, weestablished a drinking guideline for all employees and announced our Basic
Philosophy for Promotion of Moderate & Responsible Drinking. Looking
ahead, we will explore additional in-depth educational activities expand thereach of the newly founded Fund for Preventing Underage Drinking.
The Asahi Breweries Group will further advance its CSR activities byidentifying, analyzing and taking action to meet emerging social needs, inaddition to existing efforts. Through these CSR activities, we are committed
to satisfying our stakeholders, that is, all our customers.

9 CSR REPORT 2005

Customers
andCivil Society

Enhanced
Customer Satisfaction

Business
Partners

Customers
Supporting

Shareholders/ the Asahi Breweries Group’s
Corporate Activities
Investors
Proposaland Information
Disclosure to
Customers

Pursuit of Quality
Develop and provide highquality products andservices to gain the trust andensure the satisfaction of thecustomer.

Employees
Local
Communities

Compliance with Laws
and Ethical Standards

Environmental
Conservation

Perform corporate activities
in compliance with laws andethical standards to gain thetrust of society.

Reduce the Group’s burden
on the environment andcarry out conservation
activities for forests andwater resources to protect
the global environment.

GlobalEnvironment

Six Priority Initiatives of Our CSR Activities
Appropriate Information
Disclosure

Living in Harmony
with Local Communities

Encouraging Moderate& Responsible Drinking

Rapidly disclose information
in a fair and impartial manner
to raise the transparency ofcorporate management.

Support volunteer andcultural activities tocontribute to the creation ofcultural living in communities.
In addition, encourage
exchanges with local
communities to deepen
mutual understanding.

Carry out initiatives to prevent
underage drinking, drinking
and driving, and alcohol
consumption by pregnant
and breast-feeding women to
actively fulfill the responsibilityof enlightening consumers onproper drinking.

Enhanced
Corporate Value
Customer Feedback
and Opinions

CSR REPORT 200510

Corporate Governance

The Asahi Breweries Group is strengthening its corporate
governance to ensure the consistent and ongoing
fulfillment of its corporate social responsibility.

The Asahi Breweries Group is committed to strengthening
its corporate governance in order to be highly effective andadapt quickly in an ever-evolving business environment. The
Group seeks to meet the requirements of consolidated
management and earn trust by all stakeholders through theenhancement of social responsibility and managementtransparency.

Basic Policy

Corporate Governance Structure
Shareholders’ Meeting
Appointment/Dismissal

Appointment/Dismissal

Board of Auditors

Board of Directors

Nomination Committee

Audit•Chairman of the Board and CEO•President and COO•Inside Directors•Outside Directors•Standing Corporate Auditors•Outside Corporate Auditors•Inside Directors•Outside Directors

Compensation Committee•Inside Directors•Outside Directors

Appointment/Dismissal

Financial Auditor

Audit

Chairman of the Board and CEO

President and COO

Management Strategy Meeting

Management Meeting•President and COO•Inside Directors•Executive Officers

AdviceAudit

Audit Department

Governance/Surveillance

Internal
Audit

Alcoholic beverages business
Soft drinks business
Food and pharmaceuticals business
Other businessAsahi Breweries Group Business Ethics Rule

11 CSR REPORT 2005

Governance/Surveillance

Advice/SupportGroup
CSR
Committee

Contractual Lawyer

Appointment/Dismissal

Enhancing Management
Fairness and Transparency

Streamlining Decision Making
and Administration

Asahi Breweries strives to develop its business and secure
profits for stakeholders by adopting a system of auditors formonitoring corporate management and directors. The
Board of Auditors consists of five auditors, of which three
are outside auditors.
The Board of Directors consists of eleven directors,
including three outside directors. Asahi Breweries has
placed outside directors on its board since 1982 andincreased the number from one to three in 2000 to improve
the overall review functions of the Board of Directors toincorporate several points of view. This system of outside
review is intended to enhance fairness and transparency
while further expanding Group management capabilities.
The appointment of directors and executive officers andtheir compensation are deliberated and determined by the
Nomination Committee and the Compensation Committee,
respectively, which were established in 2000 and report to
the Board of Directors.
The Nomination Committee recommends candidates for
directors, executive officers, and corporate auditors to theBoard of Directors. The Compensation Committee makes
proposals to Board of Directors on the compensation
structure for directors and executive officers. We plan tofurther enhance fairness and transparency by ensuring theeffective functioning of these committees.
Total compensation paid to directors in fiscal 2004 was
264 million yen, including 239 million yen paid to companyemployed directors, and total compensation paid toauditors was 78 million yen, including 64 million yen paid tocorporate auditors. Executive bonuses paid out of profits
totaled 42 million yen for directors, of which 38 million yen
was paid to company-employed directors, and 8 million yen
for auditors, including 5 million yen paid to corporate
auditors. Retirement benefits amounted to 132 million yen
for three directors who retired during the previous fiscal year
and 14 million yen to an auditor who retired.

Compensation and Retirement Benefits for
Directors and Corporate Auditors (FY2004)(Units: million yen)
Directors

Corporate Auditors

Total amount received incompensation

264

78

Total amount received in
executive bonuses

42

8

Total amount received inretirement benefits

132

14

Two high-level meetings share overall responsibility fordecision making. The Management Strategy Meeting,chaired by the chairman and CEO, deliberates theoperations of the entire group, while the Management
Meeting, chaired by the president and COO, oversees themain alcoholic beverage business. These meetings maintainthe accountability of directors for the entire Group and the
responsibility of the COO and executive officers for thealcoholic beverages business, thereby streamlining decision
making and clarifying responsibilities.
In addition, the Executive Officers system introduced in2000 separates the management strategy planning andsupervisory roles of directors from the administrative roles ofexecutive officers. The main missions of the directors is thesupervision of business and decision making for thecompany and to strengthen and grow the Group throughthe development of business strategies and importantmanagement decision making with respect to the entire
Group. In addition, we seek to streamline administration by
clearly demarcating supervisory roles from administrativeroles, which are assigned to Executive Officers.

Promoting CSR Management
Asahi Breweries established a CSR Committee in
December 2003 at the Asahi Breweries Head Office for
effective CSR management. In September 2004,
representatives from 16 departments at the Asahi Breweries
Head Office and 16 Group companies joined the CSR
Committee, essentially broadening its function into aGroupwide CSR Committee.
Under the new structure, the CSR Committee promotes
CSR activities for the entire group under the Six Priority
Initiatives of CSR: Pursuit of Quality, Compliance with Laws
and Ethical Standards, Environmental Conservation,
Appropriate Information Disclosure, Living in Harmony with
Local Communities, and Encouraging Moderate &Responsible Drinking.

CSR REPORT 2005

12

Compliance

The Asahi Breweries Group is promoting compliance toearn customer trust.

Revising the Asahi Breweries Group Business
Ethics Rule for Greater EffectivenessTo consistently earn the trust of stakeholders, compliancemust be thoroughly implemented across the enterprise,encompassing all executives and employees of the Asahi
Breweries Group, as well as contract, temporary, and parttime employees.
Consequently, the Asahi Breweries Group established the
Asahi Breweries Group Business Ethics Rule in November
1999.
In October 2003, the Asahi Breweries Group Business
Ethics Rule was revised to help employees more precisely
determine what they should and should not do at the finest
level of detail. In addition to including concrete standards
governing day-to-day work, the table of contents and index
were also updated to make the document more accessible
and easy to understand.

Branch Organizations

System for Promoting Compliance

Head Office Organization

Compliance Promotion System
Corporate Ethics Committee
General Manager, Legal
Management Department

General Manager, Quality
Assurance Department

Legal Management
Department

Quality Assurance
Department

Managers of Business Units
Business Unit: Manager,
General Affairs andSecretary Department

Business Unit: Managers

Senior Legal Promoter (SLP)

Legal Promoter (LP)Operation of the Legal Promoter System

Asahi Breweries Group Business
Ethics Rule
Section One

The Fundamental Philosophy

Section Two
Part One
Part Two
Part ThreePart FourPart Five
Part Six
Part Seven
Part Eight

Corporate Ethics Standards
Responsibilities to Consumers
Responsibilities to Clients and Related Industries
Responsibilities to Suppliers
Responsibilities to Employees
Responsibilities to Society
Responsibilities for the Global Environment
Responsibilities to Governmental Institutions
Responsibilities to Shareholders and Investors

Section Three

Implementation Guidelines

13 CSR REPORT 2005

The Asahi Breweries Group has formulated a system forpracticing compliance rooted in the routine work, whilerevising the Asahi Breweries Group Business Ethics Rule sothat all executives and employees can concretely understandthe importance of compliance.
The Legal Promoter System, which has been in operation
since 1999, forms the heart of these efforts. The purpose ofthis system is to ensure the wide-spread practice ofcompliance on a daily basis in all business units and acrossthe entire Group under the leadership of legal promoters who
have been trained by the Legal Management Department.
There are approximately 130 legal promoters.
In addition, 26 Senior Legal Promoters highly
knowledgeable on compliance were assigned to major
business units starting in 2002, to further reinforce thecompliance promotion system. Other activities for promoting
compliance contained in the Implementation Guidelines of the
Asahi Breweries Group Business Ethics Rule include selfcheck cards carried by employees to use in confirming
compliance, and the submission of signed pledges to observe
ethics rules, which all executives and employees, except
corporate auditors, are obliged to sign.

Ensuring Thorough Compliance Implementation
To ensure compliance implementation, a team comprised ofmembers from the Legal Management Department, theQuality Assurance Department, Social & Environmental
Management Department, and the General Affairs & Secretary
Department, in addition to the Audit Departments, conducts
internal audits of business units, including group companies.
Since 2002, we have also conducted annual surveys on
corporate ethics involving all employees across the entire
group to identify compliance issues, as part of the “Check”
function in our Plan-Do-Check-Act (PDCA) cycle forpromoting compliance. The 2005 survey indicated that level ofrecognition of the business ethics rule was raised from 54%
after it was first established to 91% as a result of compliancetraining. In addition, we hold compliance training sessions
under specific themes, such as public expression and theAnti-Monopoly Law, as well as compliance seminars
conducted by an outside lawyer for directors.
The Asahi Breweries Group will continuously enhance its
compliance system through such efforts as updating the
Asahi Breweries Group Business Ethics Rule, implementing
action plans, and verifying results.

Establishment of In-house Reporting
System, Clean Line System
Preventing Problems Associated with Identified
Corporate Risks
The Clean Line System was set up as an in-house reporting
method for quickly identifying potential risks and preventing
the occurrence of major problems. It was established toaddress problems which, for whatever reason, employees felt
they could not report or could not seek advice through thestandard channels of communication. The system provides amechanism to protect employees in reporting or consultingwith experts with regard to actions at the workplace that areor may be against prevailing laws and regulations, the Asahi
Breweries Group Business Ethics Rule, or other rules.
Consultations can be arranged either through an internal
contact person using the Corporate Ethics Committee Officeor external contact person using contractual lawyers. Any
issues reported through the system are vigorously
investigated and reviewed by the Corporate Ethics
Committee. The identity of employees who report problems tocontractual lawyers can be protected, and steps are taken to
ensure that no employee ever places themselves at risk byreporting a problem.
Eight such incidents were handled through the Clean Line
System in 2004.

Clean Line System
Chairman of the Board, President
Directive

ReportCorporate Ethics Committee
Compliance training sessions•Directors•Executive Officers•Contractual Lawyer
Directive

ReportInternal Contact

Request for
Investigation

External Contact*Name of reporting•General Manager, Legal Management
Department•General Manager, Quality Assurance
Department(Corporate Ethics Committee Office)Consultation(name disclosed)

party can beconcealed at the
party’s discretion.

•Contractual Lawyer

Response
Consultation(name disclosed/anonymous)

Selection
Response

Response

Employee Seeking Consultation

CSR REPORT 2005

14

Personal Information Protection
Formulation of Asahi Breweries Group Rules for
Handling Personal Information
With the rapid development and penetration of information
technology into society, companies can obtain large amountsof personal information and easily use it for corporate
activities. On the other hand, however, violations of personal
rights are occurring with increasing frequency, including
massive exposure of personal information as a result ofirresponsible handling or the fraudulent collection of
information. Therefore, the ‘‘Act concerning Protection of
Personal Information (Personal Information Protection Law)’’
was partly put into effect in May 2003 as an institutionalfoundation for enabling the public to enjoy the benefits of ahighly sophisticated information society without fear.
In light of these trends, the Asahi Breweries Groupestablished regulations governing the appropriate handling of
personal information provided by customers in the Asahi
Breweries Group Business Ethics Rule and formulated theInformation Management Rule April 2004, which provides
criteria for the handling for all information within the company.
In addition, we formulated and started implementation of the
Asahi Breweries Group Rules for Handling Personal
Information, which offers more sophisticated guidance forhandling personal information in line with the full enforcementof the Personal Information Protection Law. We also revised
our information system and internal rules by issuing theInformation Management Handbook as a tool for explaining
the regulations in an easy-to-understand manner. The
handbook was distributed to all employees, including those inGroup companies, to ensure recognition and thoroughunderstanding of the guidelines.

Privacy Policy
The Asahi Breweries Group declares that it will handle thepersonal information of its customers and business partners(‘‘customers’’) appropriately and safely, based on deep
recognition of the need to securely handle personal information
under the principle of respect for the individual. Under thisdeclaration, the Asahi Breweries Group will hereby make public
the Asahi Breweries Group Personal Information Protection
Policy based on the ‘‘Act concerning Protection of Personal
Information’’ (Law No. 57, May 30, 2003) and related laws andregulations as well as the guidelines of the related ministries(‘‘prevailing laws and regulations’’).
March 29, 2005

Asahi Breweries Group
Personal Information Protection Policy
1. When acquiring the personal information of customers, theAsahi Breweries Group will clearly disclose the intended use
and utilize legal and fair means for acquiring such information.
2. The Asahi Breweries Group will handle personal information it
has acquired from customers as delimited by the declared or
published purpose except as provided under prevailing laws
and regulations.
3. The Asahi Breweries Group will strive to maintain the accuracyof acquired personal information and update it as necessary
within the delimited purpose and implement reasonablemeasures to manage the information to prevent loss, leakage
or unauthorized access.
4. The Asahi Breweries Group will only entrust the handling ofcustomers’ personal information to outside contractors with
sufficient security capabilities and will provide necessary andadequate supervision.
5.The Asahi Breweries Group will not disclose or provide
personal information of customers to a third party without theprior consent of customers except as provided underprevailing laws and regulations.
6. The Asahi Breweries Group will make public its disclosure
procedures as provided under prevailing laws and regulations
and will appropriately address inquiries and requests from
customers for such disclosure.
7. The Asahi Breweries Group will observe prevailing laws andregulations concerning the protection of private informationand continuously develop and improve the Group’s structure
to do so through such efforts as employee education.

Information Management
Handbook

15 CSR REPORT 2005

For Consumers and Civil Society p.25

SpecialFeaturesSix Priority
Initiatives

For Business Partners

p.33

For Shareholders and Investors

p.37

Customers
For Employees

p.41

For Local Communities

p.47

For the Global Environment

p.51

Activity Report

2004

Asahi Breweries Group Efforts for
Satisfying Customers with Great Taste

CSR REPORT 2005

16

Activity Report
2004

SpecialFeaturesSix Priority
Initiatives

The entire Asahi Breweries Groupis working on the Six Priority Initiatives.

Pursuit of Quality

Detailed report on page 19

In our pursuit of satisfying customers with the highest level of quality,
we constantly apply both innovation and tradition in manufacturing.
Asahi Breweries’ quality assurance system is committed to delivering the highest quality.
Our efforts include raising the level of quality and increasing production efficiency as
research for work restructuring. Every plant promotes this research,
in which every employee is encouraged to strive for self-improvement and set their own
goals for achieving their dreams, without compromise.
We also introduced Technical Master and Technical Expert Programs
to establish, improve and pass on skills that are fundamental for
manufacturing high quality products.
Recipients of the highest award at the fiscal 2004
debriefing session on research for work restructuring

Hidetoshi Tomita
Technology Training Center andProduction Strategy & Policy Department
Asahi Breweries, Ltd.

Compliance with Laws andEthical Standards

We go beyond compliance training to actively promote
ongoing improvement in compliance at each worksite.

Mariko Okino
General Affairs Department,
Product & Technology Development
Headquarters
Asahi Breweries, Ltd.

The Asahi Breweries Group held compliance training sessions in various parts of Japanin association with the significant revision of the Asahi Breweries Group Business Ethics
Rule in October 2003. In addition to the training sessions,
we have appointed Legal Promoters (LPs) and Senior Legal Promoters (SLPs), known as‘‘compliance evangelists,’’ to each business unit and company. LPs and SLPs provide
leadership in formulating company structures, disseminate
information on the Asahi Breweries Group Business Ethics
Rules at worksites, and raise awareness of new laws, such as
the Personal Information Protection Law.
Compliance training sessions

Environmental Conservation

A Group-wide goal for reducing CO2 was set under
the new Second Medium-term Environmental Management Plan.
The Nikka Whisky Distilling Co., Ltd. operates six plants in Japan. As a result of efforts to conserve
energy and reduce the emissions of greenhouse gases in all plants, particularly the Sendai Distillery
and Kashiwa Plant, we were able to reduce total CO2 emissions in fiscal year 2004 by 5% fromthe previous year, representing a 43% reduction compared to 1990 levels. The goal of the Asahi
Breweries Group under the Second Medium-term Environmental
Management Plan is to limit total CO2 emissions within ±0% of 1990
levels while increasing the scale of production to approximately 1.6
times 1990 levels. Nikka Whisky joins other Group companies in their
Makoto Aihara
commitment to significantly contribute to the achievement of this goal
Engineering Section, Kashiwa Plant
through further improvements in energy efficiency.
Nikka Whisky, Sendai
The Nikka Whisky Distilling Co., Ltd.
Distillery

17 CSR REPORT 2005

The Asahi Breweries Group believes that CSR activities fulfill our responsibilities
for a wide range of stakeholders.
We established Six Priority Initiatives for the Group in 2004 to ensurethat CSR activities genuinely reflect the character of the Asahi Breweries Group.
In the following special feature articles, our employees explainin their own words how they are engaged in CSR in their own worksites.

Appropriate Information Disclosure

As a recipient of the Excellence in IR Awardand the Award for Excellence in Corporate Disclosure,
we will continue to disseminate accurate information.
In 2004, Asahi Breweries received the Japan Investor Relations Association’s Excellence in
IR Award for Fiscal 2004 for its timely and appropriate information disclosure, easily
understood explanatory materials, and its highly rated, proactive
investor relations (IR) efforts for individual investors. In addition, theSecurity Analysts Association of Japan selected Asahi Breweries
as the No. 1 food-related business under the Excellence inCorporate Disclosure category. With the growing public interest in
corporate information disclosure, Asahi Breweries will continue toprovide information that is true, accurate, and timely.

Tsuyoshi Suzuki
Public Relations Department
Asahi Breweries, Ltd.

IR Web site

Living in Harmony with
Local Communities

Asahi Breweries actively works with regional residents
in conserving water resources to protect
abundant local water systems.

Ryuji Shibata
General Affairs & Secretary Department,
Shikoku Brewery
Asahi Breweries, Ltd.

We began water resource conservation activities at our Shikoku Brewery to protect the richwater resources of the area. In an initiative taken by brewery employees, local citizens
participated with them in planting trees, trimming undergrowth, andparticipating in games designed to raise awareness of environmental
conservation. I am glad to hear that our activities are providing amodel for the roll out of water resource conservation activities byother plants. We are determined to take on new challenges while
maintaining open communications with local citizens.
Conservation activities

Encouraging Moderate& Responsible Drinking

for forests and water
resources

Detailed report on page 22

We are implementing a variety of activities
related to the Fund for Preventing Underage Drinking
and the Moderate & Responsible Drinking Committee.
Asahi Breweries, which had previously encouraged moderate & responsible drinking, established theModerate & Responsible Drinking Committee in 2004 and decided to expand the scope of ouractivities by setting up six working groups and formulating basic principles andaction guidelines. We also created the Fund for Preventing Underage Drinking andbegan supporting organizations, individuals and business establishments inaddressing this issue. Encouraging moderate & responsible drinking is one of ourmost important civic duties as an alcoholic beverage provider. We will continue
Makoto Saiki
to take bold actions that contribute to a prosperous and healthy lifestyle.
Social & Environmental
Keeping on Good Terms with Alcohol: A Guidebook for Responsible Drinkers

Management Department
Asahi Breweries, Ltd.

CSR REPORT 2005

18

Special
Features Activity Report 2004
Pursuit of Quality

The quality assurance system of the Asahi BreweriesGroup continues to evolve, from setting rules torooting principles among production worksites.
In order to realize its management philosophy of delivering customer satisfaction, the Asahi
Breweries Group focuses its energy on expanding its quality assurance system through the
Pursuit of Quality, one of our Six Priority Initiatives for CSR activities. In addition, we have been
actively working on establishing a quality assurance system for the Group beyond our role as abeer and happoshu (low-malt beer) provider to encompass our wider function as a total
alcoholic beverage provider.
This section reviews the history of quality assurance efforts at Asahi Breweries andsummarizes the current status and future vision of the Group-wide quality assurance system.

In the Beer andHapposhu Category
Satisfying Customers with theHighest Levels of Quality andIntegrity
In order to realize its corporate
philosophy, ‘‘satisfying customers withthe highest levels of quality andintegrity,’’ Asahi Breweries worked daily
to formulate a quality assurance systemfor delivering the highest level of quality,
through such efforts as introducing Total
Quality Management (TQM) andacquiring ISO 9001 certification.

Taikoban Guarantee System

Our quality assurance efforts included
the introduction of the Taikoban
Guarantee System (p. 27) in 1991.
Under this system, managers
responsible for each process verify
product quality using data such as test
results and capacity utilization before
sending the product on to the next step.
Ultimately, the person in charge of final
product quality determines whether the
product meets the standards fordelivery.
The TECOS21 (p. 28) network
system supports quick and accurate
operation of the Taikoban Guarantee
System, and constitutes the foundationof the Asahi Breweries quality
assurance system, not only in terms of
quality improvement, but also from the

19 CSR REPORT 2005

perspective of maintaining a welldisciplined production worksite withclearly defined responsibilities for eachdepartment.

Challenge of Reducing Quality
Risk Factors
The next step in strengthening Asahi
Breweries’ structure for guaranteeing
quality was the Reducing Defective
Products Project (1998-2000) for
minimizing quality risk factors.
The context for this effort was ourrealization of certain shortcomings
associated with our efforts in responseto standards and rules, including the
introduction of the Guarantee System
and acquisition of ISO certification.
While the introduction of standards andguidelines stimulated an awareness of
the importance of such structures in
production worksites, there was also asuperficial attitude of simply obeying therules without a genuine commitment tothe spirit of compliance.
In production worksites, materials
vary according to product, and facilities
and processes are always evolving.

Under these conditions, just observing
existing standards and rules is notenough to ensure that the correct action
is promptly implemented.
Consequently, Asahi Breweries
started the Reducing Defective
Products Project with the objective ofgoing beyond the basic establishmentof standards and rules to deeply embed
the philosophy behind the rules into theorganization. This project began bygathering under one roof all brewery
managers responsible for beer andhapposhu (low-malt beer) processes toreview past quality issues. The
managers then set down in writing auniversal and systematic perspective on
quality control that would be likely tostand up to the challenges of dailychanges in facilities and processes.
They extracted the essence of theabundant knowledge and experience
they had gained in their respective

production worksites over the years,
including such observations as theimportance of paying attention to actual
worksite and product conditions, andrecognizing the clear signs of animpending problem.
In 1999, Asahi Breweries formallysummarized this collective wisdom into
standard facility procedures for defective
products, which were to be applied tofacilities and processes in the form of achecklist for defective products. These
procedures were then put into effect for
all processes related to the
manufacturing of beer and happoshu. In
addition, a mechanism was developed
to help employees document andconduct self-evaluations every year andto systematically submit new ideas for
improvement in the form of a‘‘Countermeasures Report’’ to assist in
the formal incorporation of these ideas.

In the Other Alcoholic
Beverages Category
and Across the GroupStrengthening the Quality
Assurance System in the Other
Alcoholic Beverages Category
The alcoholic beverage manufacturers of
the Asahi Breweries Group who
shoulder the responsibility for otheralcoholic beverages inaugurated
extensive parallel activities to establish
quality assurance systems in the midstof their respective proprietary operations.

certification for food sanitation
management. In addition, the Reducing
Nonconforming Products Project was
launched in 2003 based on production
risks identified in the Reducing Defective
Products Project at the Asahi Breweries.
Asahi-Kyowa Liquor ManufacturingCo., Ltd. and Satsumatsukasa ShuzoCo., Ltd. started developing a quality
assurance system, from production to
shipment, using a process control table
and a risk management table according
to individual production items based on
the Reducing Defective Products Project.

Reducing Defective Products
Project Implemented in the Other
Alcoholic Beverages Category
In 2004, the Hirosaki Plant of the The
Nikka Whisky Distilling Co., Ltd.,acquired HACCP, an international

HACCP certification for the The Nikka Whisky
Distilling Co., Ltd., Hirosaki Plant

Total Alcoholic Beverage Worksite
Managers Meeting
One quality assurance activity
implemented across the Group is the
Total Alcoholic Beverage Worksite
Managers Meeting. The meeting brings
together managers of the business unitsof Asahi Breweries and other Groupliquor manufacturing companies toestablish goals by discussing thedesired quality level to be achieved in
the Group and sharing the know-how
and skills of each company.

Pursuing Synergies across the
Asahi Breweries Group
Departments in charge of quality
assurance at Asahi Soft Drinks Co.,
Ltd., and Asahi Food & Healthcare Co.,
Ltd., seek to establish synergies amongareas of expertise related to quality
management, such as quality
assurance and quality audits, by jointly
implementing measures with Asahi
Breweries while at the same time
formulating their own quality
management systems for theirrespective product requirements.

CSR REPORT 2005

20

Activities of Asahi Soft Drinks
Asahi Soft Drinks acquired ISO 9001
and HACCP certifications for its
Kashiwa, Akashi, and Hokuriku Plants
and is now preparing to acquirecertifications for its Fujisan Plant. In
addition to the periodic external auditing
required for certifications, the company
implemented a joint plant audit with
Asahi Breweries in 2004 on a pilot
basis, with plans for full implementationof this plant auditing system starting in
2005. The company also introduced the
Taikoban Guarantee System of Asahi
Breweries in 1995, including appropriate
improvements in accordance withcompany specifications.
Furthermore, we conduct periodic
quality assurance to ensure the quality
policy is observed and to share
information with outsourced plants
entrusted with production. In addition,
an intranet-based quality assurance
system was constructed in 2001 tostrengthen and enhance the trail of
documentation toward designing a way
to monitor the production records of allplants, including information on raw
materials, quality, and operations.
Quality is the top priority of the Asahi
Breweries Group in demonstrating atrustworthy commitment to safety,
satisfaction, and the delivery of products
and services that are appreciated bycustomers.

21 CSR REPORT 2005

Asahi Food & Healthcare’s Actio Acerola C
The Asahi Breweries Group has
worked as a fully integrated team on
quality assurance activities related toreliability and safety while providing
customers with better products andservices. In July 2004, Asahi Food &Healthcare was ordered by the Fair
Trade Commission to discontinue
the sales of Actio Acerola C thatcarried a label declaring the productcontained vitamin C derived fromnatural acerola. The order allegedthat most of the vitamin C containedin the product was synthetic in
origin, and therefore violated theLaw for the Prevention of
Unreasonable Premiums andMisrepresentation Concerning
Products and Services.
Based on the manufacturing
specification submitted by thematerial provider, Asahi Food &Healthcare had believed the vitamin
C contained in the raw material wasderived from natural acerola. As theresult of a company investigation in
April 2004 of the material provider
following the issuance of the Fair
Trade Commission order, it was
confirmed that synthetic vitamin C
was in fact contained in the raw
material. The company immediately
stopped the sale of the product inquestion. In addition, it released apublic apology in national
newspapers and voluntarily recalled
the product, reimbursing
consumers for its cost.
After April 2004, Asahi Food &Healthcare conducted a generalinspection of package descriptions
for all products, including thelabeling of raw materials, on the
grounds that the incident revealed
an inadequate confirmation of raw
material quality and content at thetime of product development. In
addition, the company completely
reviewed its quality assurance
system* to prevent the recurrenceof such issues, and is now
developing and selling products
under the new quality assurance
system.

* Asahi Food & Healthcare’s quality
assurance system was revised on
the following points:(1) Completely revising the productdevelopment flow(2) Tightening raw material selection andprocurement standards, including
safety checks and documentation
trail(3) Strengthening the labeling checksystem(4) Reviewing the production processcontrol standard(5) Reviewing the quality audit standard

Special
Features Activity Report 2004
Encouraging Moderate & Responsible Drinking

As a socially responsible alcoholic beverage
provider, the Asahi Breweries Group is committed
to encouraging moderate & responsible drinking.
On one hand, liquor is a cultural asset that has brought joy and pleasure to people’s lives andis closely associated with the natural features, cultures and lifestyles of the various regions of
the world.
On the other hand, inappropriate consumption of alcohol beverages has created harmful
situations for individuals and society as a whole.
As a total alcoholic beverage provider, the Asahi Breweries Group acknowledges its
responsibility to take the initiative in addressing these issues. This section reviews ouractivities for promoting moderate & responsible drinking through communication withcustomers, others in the industry, and people around the world.

Basic Definition of Moderate
and Responsible Drinking
Throughout history, alcohol has brought
joy and pleasure to cultures and played
an important role in celebrating major
events in the lives of people. A variety ofalcohol, such as beer, wine, andwhiskey, and their different recipes havebeen produced around the world sinceancient times, each reflecting thedistinctive natural features and culturesof its region of origin, and this abundant

Upper: Records indicate that beer
was made from foxtail millet inancient China around 2000 B.C.

variety of alcohol reaches consumers
across national borders. In this sense,
alcohol is a cultural asset shared byalmost all people and cultures. The
Asahi Breweries Group is proud of its
participation in the manufacture andsales of alcoholic beverages in thiscontext.
At the same time, however, theinappropriate consumption of alcohol
can disrupt the lives of individuals,
families and society as a whole, throughsuch problems as drinking and driving,underage drinking, and alcohol
dependence.
Consequently, the Asahi BreweriesGroup has long encouraged moderate& responsible drinking to eliminate theproblems associated with inappropriate
drinking and allow people to include
alcoholic beverages in their celebrations
and social life.

Left: Pamphlet promoting responsible
drinking, The Chief of All Medicines
When Drinking Properly
Right: Keeping on Good Terms
with Alcohol: A Guidebook for
Responsible Drinkers

Right: Historic
records show thatancient Germanic
people in North
Europe made beeraround 1800 B.C.
This beer isreported to havebeen the origin ofpresent-day beer
recipes, which
processes barley
into malt.

CSR REPORT 2005

22

In Partnership with
Customers
One of the Six Priority Initiatives
for CSR activities
Asahi Breweries has taken manyactions to raise awareness andencourage customers to practicemoderate & responsible drinking. These
activities have included Mini Manuals forcustomers; a booklet for college
freshmen titled Keeping on Good Terms
with Alcohol: A Guidebook for
Responsible Drinkers; an educational
video for junior high school students
titled Forward to a Brighter Day! JuniorHigh School Students Say NO to
Alcohol!!; and the Healthy Relationshipbetween People and Alcohol Web site,
introducing the company’s efforts toaddress alcohol-related problems.

Major Activities to Promote Responsible Drinking
1984 We created Mini Manuals containing the message, “Attention Customers:
Please Drink Responsibly.” The manuals caution customers who purchasebeer to avoid or prevent underage drinking, binge drinking, drinking by
pregnant or breastfeeding women, drinking and driving, and so on.
1998 We issued Keeping on Good Terms with Alcohol: A Guidebook for
Responsible Drinkers, a booklet for college freshmen. Approximately 1.7
million copies have been distributed as of the end of March 2005.
June 2001 We joined the International Center for Alcohol Policies (ICAP).
December 2001 We released Forward to a Brighter Day! Junior High School Students Say
NO to Alcohol!!, a video for preventing underage drinking, targeting juniorhigh school students. The video was a collaborative effort involving The
Nikka Whisky Distilling Co., Ltd. and the Japan Health and Alcohol
Incorporated Association. The company distributed approximately 7,800
copies of the video to 5,800 junior high schools and boards of education
as well as audio-visual library centers across Japan.
September 2002 Alcohol and Health, an alcohol encyclopedia, was published on our Web
site.
September 2003 We opened the Healthy Relationship between People and Alcohol Web
site, which provided information on Asahi Breweries efforts to address
alcohol-related problems.
June 2004 Product containers began to display labels to reduce the consumption of
alcohol by pregnant and breastfeeding women.
July 2004 The Moderate & Responsible Drinking Committee was established as aninter-departmental organization of Asahi Breweries.
September 2004 The Asahi Breweries Group: Basic Philosophy for Promotion of Moderate& Responsible Drinking was established. Booklets and pocket cards wereprinted and distributed to all Group employees.

Healthy Relationship between People andAlcohol Web site

Since 2004, the company has also
identified “Encouraging Moderate &Responsible Drinking” as one of its Six
Priority Initiatives for CSR activities. Inline with this priority, Asahi Breweries
convened an inter-departmentalorganization, the Moderate &Responsible Drinking Committee (p. 32),
and established The Asahi BreweriesGroup: Basic Philosophy for Promotionof Moderate & Responsible Drinking.
Furthermore, the company actively
disseminated information, providedlabels cautioning pregnant and nursing
mothers not to drink, and adopted
voluntary advertisement standards.
In March 2005, we established theFund for Preventing Underage Drinking
to support organizations, individuals,
and institutions conduct research andseminars for preventing underagedrinking (p. 32).

23 CSR REPORT 2005

March 2005 We set up and announced the first call for proposals for the Fund forPreventing Underage Drinking to support organizations and individuals intackling research and action to prevent underage drinking.

In Partnership with
People around the World
Expanding Activities under a
Global Vision
The issue of moderate & responsible
drinking is increasingly being recognized
as a major social concern, not only inJapan, but also in almost every countryaround the world. The World Health

ICAP board meeting

Organization (WHO) included alcoholabuse as an international social issue on
the agenda of the World Health
Assembly (WHA) held in May 2004.
Asahi Breweries has long promoted
moderate & responsible drinking amid
the public concern for alcohol-related
problems. In June 2001, we became thefirst Asian alcoholic beverage producer
to join the International Center for
Alcohol Policies (ICAP), an international
nongovernmental organization (NGO).
The company is working to address
alcohol-related problems on a global
scale by participating on the ICAP boardof directors.
In November 2003, Asahi Breweries
hosted the ICAP board for its firstmeeting in Japan, with discussions
including the ICAP Five Year Strategic

Plan 2004-2008. Asahi Breweries is
ICAP’s only corporate representative inJapan. The company also represented
the Japanese alcoholic beverageindustry at ICAP’s Alcoholic Beverage
Industry Self-Regulation Meeting in
London, October 2004, which invitedrelated members of WHO, and theinternational meeting held in
Amsterdam, February 2005.

In Partnership with
the Alcoholic
Beverage Industry
Leading Activities on Behalf of
the Industry
Education in moderate & responsible
social drinking is critical for addressing
alcohol-related problems that haveInternational Center for Alcohol Policies (ICAP)
Established in 1995, ICAP is an international nongovernmental organization (NGO)focused on addressing alcohol-related problems. Nine of the world’s major liquor
providers, including Asahi Breweries, are members. ICAP projects and services
focus on raising public awareness of moderate & responsible drinking, study andresearch of the alcohol policies of individual countries,
epidemiological studies, publishing, and the sponsoringof forums. Activities are guided by these two basic
philosophies: (1) reducing alcohol abuse across theworld and (2) promoting understanding of the roles ofalcohol beverages in society.

become international concerns. These
educational efforts must involve industry
and government and cannot be limited
to activities by individual corporate ororganizational entities. Therefore,
beyond its own educational efforts,
Asahi Breweries actively promotes
moderate & responsible drinking
awareness across the industry andthroughout society as a whole. Our
efforts include providing useful
information and proposals for action to
the alcoholic beverage industry, thegovernment and municipalities, building
upon the wealth of data andinternational relationships we acquire asa member of the International Center for
Alcohol Policies (ICAP).
The Asahi Breweries Group willcontinue to fulfill its social responsibilities
by encouraging moderate & responsible
drinking from the perspective of industry
self-regulation and public education andawareness building activities.

ICAP Web site

Healthy Relationship between People
and Alcohol, our portal Web site, offers awealth of information along with reportson the activities of Asahi Breweries topromote proper drinking.

CSR REPORT 200524

For Consumers and Civil Society
In order to contribute to the creation of a healthy and affluent society through food products,
Asahi Breweries assumes responsibility for developing, manufacturing,and delivering safe, quality products to its customers.
This has meant far more than establishing a rigorous quality assurance system.
We have also promoted appropriate and accurate package labeling and advertising expressions,introduced universal design, and taken action in response to feedback from our customers and the market.
In addition, as a total alcohol beverage maker, we actively educate consumers about responsible drinking behavior.
Asahi Breweries continues to strive to offer safety and security to customers,
earn their trust, and deliver satisfaction.

Customer Relations
OfficeThe Customer Relations Office
functions as point of contact forreceiving inquiries, opinions, andsuggestions from our customers.

Customers
andCivil Society

Voice Park
Voice Park is a Web site that encourages
communication between customers and productdevelopers. Asahi Breweries presents the behind-thescenes story on product development on the site,which also provides a bulletinboard for customers to postcomments.

GlobalEnvironment

Business
Partners

Customers
Supporting
the Asahi Breweries Group’s
Corporate Activities

Local
Communities

Shareholders/
Investors
Employees

Relations with consumers and civil society
Customer Relations Office, Customer Information Topics, Voice Park,various pamphlets, etc.

Various Pamphlets
In addition to ‘‘mini-guides’’ explaining
product characteristics and tips forenjoying them, we issue pamphlets toenhance customer satisfaction.

25 CSR REPORT 2005

For Consumers and Civil Society

For Consumers and Civil Society

Asahi Breweries’
Quality Assurance System
Pursuing Customer Satisfaction

In line with its Quality Philosophy, Asahi Breweries has
established cross-organizational teams and auditing groups topromote quality assurance at every stage, from theprocurement of raw materials to manufacturing, logistics, anddistribution.

Asahi Breweries’ Quality Philosophy
Asahi Breweries recognizes quality as a top priorityand provides the highest quality in order to earncustomer trust and deliver customer satisfaction.

For Shareholders and Investors

Providing the Highest Quality

For Business Partners

In its pursuit of customer satisfaction, the Asahi Breweries has
established quality assurance structures, including Total
Quality Management, ISO 9001 certification, and the Taikoban
Guarantee System (p. 27).
Our activities reach well beyond these specific efforts tocontinually upgrade the entire quality system. We conduct
cross-organizational problem solving and actively encourage
process improvements that are not limited to specificdepartments. For example, the Reducing Defective Products
Project (1998 to 2000) focused on minimizing quality risk
factors, the Business Reform Research Activities (2002 topresent) is working to establish ideal breweries, the Public
Expression Committee (1995 to present, see p. 30) is
reviewing appropriate product labeling and advertisement
content, and the Quality Management Committee (2003 topresent, see p. 27) is striving to improve the overall quality
assurance structure and product quality.

Quality Assurance Activities

Quality Assurance Structure
Customers

Utilizing Customer
Information

Quality Management Committee

Public Expression Committee

for Quality Improvement

for Appropriate Labeling

Product
Development

Procurementof Raw
Materials•Process of New
Product Development•Procurement Testing of
Raw Materials•ISO 9001•Quality Examination•Quality Management
Committee•QA Conference•Public Expression
Committee•Raw Material Risk
Control Standards

Manufacturing•Quality Assurance
System-Taikoban Guarantee
System-TECOS-ISO 9001-Reducing Defective
Products Activities•Food Sanitation Control

Shipment•Shipment Judgment
Standards•Rules for Shipment
Date and Freshness
Date•Gift Wrapping ProcessStandards

Distribution

For Local Communities

Developing
New Products

For Employees

Utilizing Customer Information

Logistics•Storage andTransportation Control

Customer Relations•Freshness
Management

Keg Draft Beer
Quality Assurance•ISO 9001•Keg Draft Beer Quality
SeminarFor the Global Environment•Freshness
Management

Information Flow
Manufacturing/Distribution Process

CSR REPORT 2005

26

Broadening the Functionof the Quality Management Committee
In June 2003, Asahi Breweries launched the Quality
Management Committee as a new cross-organizational teamto address quality issues through discussions with themembers of related internal departments and to enhance its
quality assurance system.
After the restructuring of corporate committees in May
2004, this committee now
promotes quality improvement
efforts with alcoholic beveragecompanies based on information
provided by the Customer
Relations Office and the Marketing
Department while continuing to
Quality Management
strengthen the company’s quality Committee
assurance system.

Structure of the
Quality Management Committee
Chairman of the Quality Management Committee:
Director of General Support Headquarters
Office: Quality Assurance Department

Production Strategy & Policy Department
Production Department I
Production Department II
Technology Department
Procurement Department
SCM Department
Sales & Marketing Department I
Sales & Marketing Department II
Sales & Marketing Department III
New Product Development Department I
New Product Development Department II
Wine Headquarters
Quality Control Center

Major Issues Reviewed by
the Quality Management Committee(2004)•Improving cap seals to prevent injury to finger nails when
opening the container•Providing a caution message for opening container tops andthe angle for opening aluminum tops
•Ensuring the color fastness of gift cartons•Preventing paper cuts from gift cartons•Messaging related to how to remove the labels from PET
bottles

27 CSR REPORT 2005

Quality Control for
Raw Material Procurement
Confirming Raw Material Safety
through Traceability
Consumers are increasingly concerned about food safety.
Therefore, Asahi Breweries concentrates on procuring raw
materials that are extremely safe. Raw materials for beer
include malt, hops, and additives like cornstarch. In order toensure traceability for all raw materials, Asahi Breweries
performs analytic tests to confirm quality against our Raw
Material Risk Control Standards, which stipulate what must
be analyzed, the methods of analysis, and the standard
values for each material from theperspective of food safety. In
addition, we always confirm thesafety of samples before starting touse any new raw material.
In this context, Asahi Breweries
applies its Raw Material Risk
Supplier Quality Management
Control Standards to rigorously
Meeting
inspect every raw material used indaily operations. We also seek to guarantee safety by regularly
testing for the presence of agrichemical residues.
In addition, we visit our suppliers to conduct audits of their
quality control systems, from production to shipping, basedon applicable rules and standards. We also hold Supplier
Quality Management Meetings, where we discuss ways tomaintain and improve the quality of raw materials.

Introduction of IP Handling*
Since 2001, Asahi Breweries has only procured materials forbeer and happoshu additives like cornstarch and corn grits
that have been managed through identity preserved (IP)handling systems.

* IP Handling

An identity preserved (IP) system verifies that genetically modified agricultural
products and non-genetically modified products are strictly separated inevery stage of distribution.

Quality Control for Production
Executing the Taikoban Guarantee System
to Ensure Quality
The making of beer involves many different processes,
including the brewing process that creates the essence of the
product and the packaging process for filling bottles and canswith beer.
The Taikoban Guarantee System ensures the delivery of
products to customers that exceed quality standards as aresult of consistent, well-established production processes.
Managers responsible for each step confirm product quality
and the proper functioning of equipment for each production
lot and enter the data into the TECOS21 system. Every step is
accounted for, including the brewing process for making beer;
packaging beer into glass bottles, cans or kegs; and providing

Systemizing the Reducing Quality Risk Factor Concept
The Taikoban Guarantee System confirms that appropriate
processes are followed and provides a data-supportedmeans for ensuring that a certain standard of quality is met.
Asahi Breweries goes even further to assure quality by
developing and implementing systems to minimize quality risk
factors at each brewery.
The systemization of this vision involves a series of actions.
First, we identify potential risks such as microbe pollution,
exposure to foreign liquids or gases, the entry of foreign
matter, or the inadvertent cross-mixing of brands. Second,drawing upon our manufacturing experience, we clarify thepossibility of such risks by inspecting the production site andproducts, taking into account the possibility of unforeseeable
circumstances. Third, we summarize our findings for eachmachinery and process, and finally, maintain records of any
changes and make sure we share the information to minimize
future risk factors. In addition to recording and submitting
reports on machinery and processes when a new system is
introduced, we annually conduct self-evaluations based onthese reports and produce a Countermeasure Report toimplement improvements.

Introducing the Technical Master Systemand the Technical Expert System
Technical Master System
Consistently producing good products requires establishing,
improving, and sharing the techniques that form the
backbone of manufacturing. Therefore, in 2001, Asahi
Breweries introduced the Technical Master System to certify
technicians who have attained a high level of core expertise.
The system also enhances motivation and upward mobility
and nurtures younger talent by clarifying the competencies

For Consumers and Civil Society
For Business Partners

Technical Expert System
For Shareholders and Investors

In contrast with the Technical Master System, which certifies
significant accumulated experience and outstanding skills, theTechnical Expert System provides more readily achievablegoals. The system was launched in 2005 to encourage thegrowth of new and middle-tier employees by certifying that
employees have attained a given level of technical ability. The
first certifications of technical experts will take place at the endof the current fiscal year.
Asahi Breweries believes this complements the Technical
Master System by encouraging a faster process for passing
on techniques to younger employees and nurturing a
corporate learning environment.

For Employees

TECOS (Technical Computer
System) provides data support
for the Taikoban Guarantee
System. Product quality can beevaluated against standard
quality values and specifications TECOS21
by simply entering the actually measured values. The system
can be used to track minor process changes or control
traceability information, in addition to producing quality
certifications required for proceeding to the next process.
In order to further enhance its data processing capabilities
to keep pace with advances in information technology, Asahi
Breweries upgraded the system to TECOS21. The new
system is capable of handling a far larger scale of quality
assurance items and supports the networking of machineryand measured data. The system was first installed with the
opening of Shikoku brewery in 1998, and we continue toregularly improve it.

Quality Control ofDistribution and Sales
Implementing
Total Freshness Management Activities
Corresponding to its vision to ‘‘Satisfy Customers with Great
Tastes,’’ Asahi Breweries implements Total Freshness
Management Activities to deliver freshly brewed beer as soon
as possible.
For example, establishing twenty-four hour production andfull-time shipping systems at our breweries has reduced theaverage number of days from production to shipping fromtwenty days in the 1980s to three days for the main Asahi
Super Dry brands.
In addition, from the viewpoint of logistics systems toensure customers enjoy fresh beer, we provide wholesalers,
retailers, and bars and restaurants with videos and hands-on
training on the proper handling of draft beer in kegs.
Asahi Breweries will continually enhance the perception that‘‘freshness means Asahi’’ by developing technology andmechanisms that maintain our fresh taste* right up to themoment of consumption. We will also launch the Asahi
Quality Access Web site to offer information on the sourceand production date for production lots, and implement
additional collaborative efforts involving marketing, production,
logistics, and other departments.

For Local Communities

TECOS21required by the organization.
Each year, every brewery submits
recommendations for Technical Mastercertification, which are reviewed at a
meeting of business unit managers.
Including the two employees certified Technical Masteras Technical Masters in 2004, there are now nine Technical
Masters who exercise their expertise by supporting thelaunching of overseas production or delivering lectures attraining sessions. In April 2004, Asahi Breweries conducted
an overseas Technical Masters training session in Germany toidentify successful methods and broaden the base ofknowledge and techniques for human resource training.

For the Global Environmentengineering support that ensures the supply of water andnatural gas. Nothing is shipped until the person in charge offinal quality assurance determines the product is ready. The
appearance of any abnormality will interrupt the process until
the cause is identified and resolved.

* Technology and Mechanisms to Maintain Our Fresh Taste

These measures to maintain fresh taste include the new antioxidant programthat prevents the development of oxidants in each production stage, from theprocurement of raw materials to brewing and packaging.

CSR REPORT 200528

For Consumers and Civil Society

From Customer
Protection Perspectives
Customer Relations
Office Activities
Incorporating Customer Comments into
Management and Activity Plans
In order to continuously enhance customer satisfaction, Asahi
Breweries carefully considers comments from customers in its
management and activity plans. Issues identified bycustomers also inform the development and improvement of
products and services.
The primary channel for gathering customer feedback is the
Customer Relations Office. The office attempts to respond to
every question, based on our belief that every customer
comment is valuable. In addition, every opinion and comment,
including inquiries, is entered into an in-house database, fromwhich information is disseminated to all employees and Group
companies to inform daily group business, under strict
security that prevents the disclosure of any personal
information.
Furthermore, to improve our responsiveness to customers,
we use customer questionnaires and external evaluations oftelephone responses. In addition, representatives of ourCustomer Relations Office visit breweries, facilities andexternal recycling facilities to provide customers with answers
that are clear and direct.
In 2004, the Customer Relations Office received 33,805
comments, of which 4,018 were complaints or suggestions
for improvement. Besides launching the “Customer
Information Topics” page on the corporate intranet, which
provides employees real-time information and analyses aboutcomments, we published a CS report to management
detailing how departments and Group companies have
responded to customers. To protect customer privacy,
personal information and company names are removed
during editing.
Asahi Breweries will continue to enhance the functions of
the Customer Relations Office to achieve even closer
communication with customers and benefit from their diverse
perspective.

Training to Improve the Level ofCustomer Response
In 2004, as part of our internal and external training activities,
we conducted 55 training sessions and visits for 13
employees of the Customer Relations Office. Topics included
consumer response practice, coping with complaints, data
analysis, coaching, crisis control, CSR activities, and financial
management analyses. We also sponsored beer, whisky andshochu tours and inspections of PET bottle recycling
processes.

Representative product improvements
Based on comments from customers, we made the following
product improvements:
Improved tap
The tap now has a new form andsize based on the science ofsensibility engineering,* inresponse to comments expressing
desire for a beer can that is ideal
for pouring and drinking.
of sensibility engineering* Science
A statistical method applying the humansense of sensibility to product design.

Improved Production Date
Printing
We will become the first in theindustry to start printing the
production date on top of thesix-can multi-pack, in response
to comments expressing a desire
for a better display of production
and “best before” dates (planned
for summer 2005).

Comments from Customers Received
at the Customer Relations Office (2004)
Content
Suggestions 0.6%

Requests 5.4%
Contact

7.6%

Comments/Opinions
9.7%
Advice
11.8%

Total
100%

General inquiries
64.9%

Form of Contact
The Customer Relations Office

Mail, Fax, and Others

Non Toll-Free Number
731

844
E-mail5,137
Total
33,805Toll-free Number
27,09329 CSR REPORT 2005

For Consumers and Civil Society*1 Related laws

Public Expression Committee
The cross-organizational committee is chaired by the
manager of the General Support Headquarters andcomprises 16 departments: planning and production
departments, which are responsible for new productdevelopment, advertising and publicity, and sales promotion;and other departments such as legal management, quality
control, the Customer Relations Office, social andenvironmental management, supply chain management, andproduction. The committee convenes weekly to review andevaluate products, advertising, pamphlets, and campaign
supplies and giveaways, and to authorize distribution. In
2004, 1,075 items were reviewed. The committee requested
resubmissions for 126 of these items to address suchconcerns as potentially misleading expressions, for example,
the origin of materials listed in material specifications andcatalogs, and to ensure the desired impact of promotional
strategies for preventing underage drinking. Committee
requests are recorded in the minutes of their meetings andused as a reference for activities in the coming year.

For Business Partners

Major standards address observing related laws; social morality and ethics;
alcohol-related problems, including the prevention of underage drinking,socially responsible drinking, and prevention of drinking and driving; safety;
human rights issues; and environmental issues.

Improving Expressions

For Shareholders and Investors

In regard to alcoholic beverages packaging, we design our
displays to help customers—including those who do notdrink alcoholic beverages—easily find such information as
warnings to prevent underage drinking, as well as information
on recycling and nutritional content.
Clearer Expression of
Alcoholic Content
Indication of alcoholic content isprinted in large type to prevent
people who are not of drinking
age and others who do notdrink alcohol from mistakenly
consuming the drink. In
addition, whenever we launch a
new alcoholic product, whether
through repackaging or different
content, such as Frozen
Cocktails, we ensure indicationsof alcoholic content are evenmore boldly visible.
Recycle Mark
Recycling marks indicate thepackaging material isrecyclable and encourage
active support for re-use andrecycling.

For Employees

In response to increasing customer interest in the food safety
and security, Asahi Breweries has established a rigorous
quality assurance system for production and distribution thatcomplies with laws*1 related to trustworthy labels andcustomer messaging. We also pay special consideration to
product labeling and advertising expressions in the context ofconcerns for underage drinking, human rights, theenvironment, social ethics, and other issues.
As for labels, the Public Expression Committee, comprising
representatives from sixteen departments at headquarters,
convenes weekly to discuss and review products andadvertisements from a variety of perspectives while striving toappropriately convey the safety of products and prevent
misuse, misconceptions, and abuse by customers. We apply
our own Voluntary Advertising Expression Standard*2 toproduct messaging, including labels to eliminate wording orphrases that are contrary to moderate & responsible drinking
practices. We also avoid daytime advertising on television
during weekdays, as a part of our efforts to earn the trust andsupport of customers.
In 2004, in response to rising social concern related toalcohol abuse, the Moderate & Responsible Drinking
Committee (p. 32) revised the Voluntary Advertising
Expression Standard. In addition, study groups met in regional
head offices to consider related laws and issues, throughactual examples, in order to improve their strategies.

*2 Voluntary Advertising Expression Standard“Best Before” Dates
Production and “best before”
dates are now expressed withfour digits instead of two for
products in Japan.

For Local Communities

System to Test for Appropriate Labels andExpressions

Law on Alcohol Tax, Food Hygiene Law, JAS Law, Health Promotion Law,
Gift Display Law, Fair Competition Code, etc.

Disclosure of Ingredients
We have started to display
caloric content and otherfrequently desired nutritional
information.
Information on New
Materials
Whenever a new material or
new raw material is used, we
strive to explain the specificcontent and amount to avoid
misunderstanding.

For the Global Environment

Trustworthy Labels andExpressions

CSR REPORT 200530

Adoption of Universal Design

Representative Applications ofUniversal Design
BrailleTo assist visually challenged
customers to distinguish alcoholic
drinks products from soft drinks,
we have ensured that the Braillefor “Alcohol” is printed on the topof all canned alcoholic products.

Pursuing Ease of Recognition, Understanding,and UseAsahi Breweries has adopted universal design principles forvarious products to allow any customer, regardless of age,stature, or physical ability, to fully enjoy our products.

Easy-to-Open LabelOn the shrink label near the neckof Steiny bottles, Asahi Breweries
has provided tape to help open thebottle as well an explanation of
how to open the bottle to make iteasier for new customers.

Protecting Customer Information
New Rules Following the Personal Information
Protection Law
The Asahi Breweries Group handles a variety of personal data
about our customers, such as customer campaign
information and Web service (e-mail magazine) registration.
The inappropriate disclosure of such information outside of
the company could significantly harm personal rights andprivileges.
Acknowledging the need to appropriately handle thepersonal information of customers, the Asahi Groupestablished Asahi Breweries Group Business Ethics Rule andthe Asahi Breweries Group Personal Information Management
Rule (p. 15), which specifically stipulates management
philosophies for complying with the Personal Information
Protection Law.

Easy-to-Open Carton
The top of six-pack beer andhapposhu cartons incorporates ascored line allowing customers toeasily open and remove a canfrom the carton.

Easy-to-Hold Bottle ShapeThe bottle of Molt Club, our whiskybrand, is indented to prevent thebottle from slipping out of the
hand.

Canceling the Introduction of the PET Bottle Beer
In July 2004, Asahi Breweries succeeded in developing
the industry’s first plastic beer bottle and publicly
announced the introduction of “Beer in a PET Bottle”(tentative name) by the end of the year.
Following the release of this announcement throughvarious media, we received approximately 800
comments, both positive and negative. While many
welcomed the news, saying they very much looked
forward to it or could hardly wait to display it in the shop,
others expressed concerns about the cost of recycling
or increased volumes of waste. In response to theenvironmental concern, Asahi Breweries confirmed theplastic beer bottles were recyclable, just like existing PET

31 CSR REPORT 2005

bottles for soft drinks.
Given the strength of the response, however, we
determined the number of PET beer bottles, once
introduced, would rapidly and significantly exceed
projections, and potentially overwhelm the operation ofcurrent PET bottle recycling system.
Therefore, we decided to cancel the introduction ofbeer in PET bottles.
Based on this experience, Asahi Breweries willcontinue to research and develop attractive products
while taking into full consideration their social andenvironmental impact.

For Consumers and Civil Society

For Consumers and Civil Society

Moderate & Responsible
Drinking and HealthWarning against drinking while
pregnant, breastfeeding, or under
20 years of age

Fund for the Prevention ofUnderage Drinking
Underage drinking is the most serious alcohol-related
problem for society. It is associated with the risk of impaired
growth, sexual dysfunction, physiological disorders such as
dysfunctions of the liver and pancreas due to the lower
metabolic breakdown of alcohol of youth compared toadults, in addition to greater likelihood of developing an
alcohol dependency at an early age.
In order to contribute to the solution of this problem, Asahi
Breweries established the Fund for the Prevention ofUnderage Drinking in May 2005. The fund primarily supports
medical and socio-cultural research on the prevention ofunderage drinking and organizations that share this goal, as
well as individuals and institutions that hold prevention forums
and seminars. A total of ten million yen is distributed per year,
supporting ten to twenty projects, with each project receiving
between five hundred thousand yen and one million yen.

For Business Partners(1) Product Policy Group
This group discusses and publishes the basic policy andin-house standards regarding product development andexpression.

For Shareholders and Investors(2) Moderate & Responsible Drinking Expression Group
The task of this group is to broadly disseminate themoderate & responsible drinking promotional message,
drink responsibly through various advertisements andPOPs. In addition, the group works to include warnings
on all alcoholic drink packages against drinking while
pregnant or breastfeeding.
(3) Sensible Drinking Enlightenment/Educational
Activities Group
This group established The Asahi Breweries Group: Basic
Philosophy for Promotion of Moderate & Responsible
Drinking and created pamphlets for both internal andexternal use, in addition to pocket cards. The group also
created Web sites—Alcohol and Health, and Good
Relationship between People and Alcohol—which provide
comprehensive information on alcohol-related issues. In
the future, the group will conduct employee training tothoroughly enact these corporate visions and drinking
rules, establish health management systems, andencourage alcoholism prevention programs beyond theboundaries of the company.

For Employees“Encouraging Moderate & Responsible Drinking” is one of
Asahi Breweries’ Six Priority Initiatives for CSR activities.
Consequently, Asahi Breweries established the crossorganizational Moderate Responsible Drinking Committee in
July 2004. The committee, which consists of six working
groups, established The Asahi Breweries Group: Basic
Philosophy for Promotion of Moderate and Responsible
Drinking and Drinking Rules in September 2004, which was
publicly announced and went into immediate effect across theGroup.
Asahi Breweries published the core premises behind thesedecisions in Japanese and English pamphlets as well as
pocket cards and distributed them to all executives andemployees in the Group. In addition, as a means forpromoting moderate & responsible drinking, we implemented
additional measures, including a revision of in-housestandards and advertisements warning against drinking while
pregnant or breastfeeding. We also set up the Fund for thePrevention of Underage
Drinking.

The Moderate & Responsible Drinking Committee consists ofsix working groups in which member employees from Group
departments discuss measures for each area with set goals
related to them.

(4) Overseas and Domestic Markets and Consumer
Organization Relations GroupIn cooperation with the International Center for Alcohol
Policies (ICAP), the Group gathers and shares the latest
information on alcohol policies by WHO and overseas
nations. In addition, we concentrate our efforts to promote
the actions of the Brewers Association of Japan, Japan
Spirits & Liquors Makers Association, and Japan Healthand Alcohol Incorporated Association, as well as
relationships and communications with governmental andconsumer organizations.

For Local Communities

Establishing the Moderate & Responsible
Drinking Committee

Moderate & Responsible
Drinking Committee(5) Medical Research on Alcohol and Health andRelated Facility Support Group
Following the establishment of the Fund for the Preventionof Underage Drinking in March 2005, this group supports
medical research on alcohol and health as well as related
research institutions.
(6) Information Research and Investigation Group
about the “Good and Bad” of AlcoholThis group gathers and categorizes information about the“good and bad” of alcohol. In addition, it also promotes
medical and socio-cultural research on alcohol.

CSR REPORT 2005

For the Global Environment

Activities Promoting
Moderate & Responsible Drinking

32For Business Partners
Cooperation is essential for providing the best products and services.
Therefore, we partner with suppliers that consistently provide safe,
high-quality raw materials and resources,
as well as with distributors and retailers that deliver products
reflecting market trends and consumer lifestyles.
Based on this approach, we have established ethical policies, systems,
and programs to ensure fair and equitable business practices,while shifting alcohol distribution in responseto the deregulation of alcohol licensing.

Questionnaire on theSocial Responsibilities

HOT LINE
Targeting senior and executive
management of alcohol wholesalers,
this pamphlet describes practicalmeasures for improving management
and successful case studies in otherindustries.

We ask prospective business partners to submit
this survey as a means of developing mutual
understanding.

Customers
andCivil Society
GlobalEnvironment

Business
Partners

Customers
Supporting
the Asahi Breweries Group’s
Corporate Activities

Local
Communities

Shareholders/
Investors
Employees

Relations with Business Partners
HOT LINE for distributors, Procurement Web site, Questionnaire on the Social
Responsibilities, Questionnaire on the Environment, Alcoholic Drink Sales Training
Program, Full House for restaurants, Keg Fresh Beer Quality Seminar, etc.

Keg Fresh Beer Quality Seminar
This seminar is designed to help wholesalers, retailers,
and restaurants develop a base of knowledge andtechnical expertise in serving draft beer through direct,
hands-on practice sessions.

33 CSR REPORT 2005

For Consumers and Civil Society

For Business Partners

With Suppliers

Asahi
Breweries
Basic
Purchasing
PolicyConfidentiality

Maintenance ofPurchasing
EthicsFor Business Partners

In line with its corporate philosophy to provide the bestproducts and services, Asahi Breweries established its Basic
Purchasing Policy in August 2003, which requires compliancewith all relevant laws and regulations in purchasing decisions.
The policy calls for the application of fair and equitable
practices in the selection of products and business partners,
in Japan and overseas.
The Basic Purchasing Policy encompasses four major
components. Under Fairness and Justice, the policy pledges
to offer opportunities for participation, regardless of company
location, based an evaluation of quality, cost, delivery time
restraints, corporate vision, and technical skills. Under
Confidentiality, the policy calls for the protection of business
partner information. The third component, Procurement,
refers to prohibiting conflicts of interest, rewards, andpurchasing incentives, and a firm commitment to ethicalpractice. The fourth component, Consideration of
Responsibilities to the Environment and Society, promotes therealization of a sustainable society.
Asahi Breweries publicly discloses its basic policy, alongwith detailed business standards and entry sheets, on its
Procurement Web Site.

FairnessandJustice

Considerationof Responsibilities
to the Environment
and Society

For Shareholders and Investors

Establishing and Publicly Announcing Our Basic
Purchasing Policy

Asahi Breweries Procurement Web Site
http://www.asahibeer.co.jp/english/suppliers/index.html
This Web site introduces Asahi
Breweries’ Basic Purchasing Policy andrelated information. It encourages
business partners to consider
environmental issues as a social
responsibility, along with efforts to realize
a better society.

For Employees

Basic Purchasing Policy

The Major Componentsof the Basic Purchasing Policy•Asahi Breweries is committed to observing both the letter and the spiritof relevant laws and maintaining high ethical standards in all purchasing
activities.

Asahi Breweries is considering for purchase. Such activities, however,
do not guarantee the actual purchase of every item underconsideration.

•Asahi Breweries selects products based on a combined evaluation ofquality, cost, and delivery schedule.

Procurement•Asahi Breweries maintains a system for engaging Japanese andoverseas suppliers that is fair, just, transparent, and straightforward.

•Personnel in charge of purchasing shall have no conflicts of interest
with any supplier. Should such conflicts of interest arise, the company
will appoint new staff members to be in charge.

Fairness and Justice•Asahi Breweries provides fair and just opportunities for both Japaneseand overseas organizations wishing to become suppliers.
•When selecting a supplier, Asahi Breweries considers the philosophy
and technology of the company as well as quality, cost, and delivery
schedule of the potential supplier’s product.
•When requesting quotations, Asahi Breweries provides the same
information and conditions to every potential supplier. No supplier
receives special treatment or information that would constitute anadvantage.
Confidentiality•Asahi Breweries will not disclose to external parties any information or
technology provided by a supplier without their express prior consent.
The internal disclosure of information and technology is strictly limited
to personnel who require such information.
•Asahi Breweries does not develop supplier relations for the purpose ofcollecting information or technology. Quotations and technical inquiries
by personnel in charge of procurement are strictly limited to items that

•Personnel in charge of purchasing shall not receive gifts or personal
financial gain from any supplier. Purchasers may not demand
donations.
•Purchasers shall not abuse their position as a customer to obtain unfair
reductions in prices or services.
Responsibilities to the Environment and Society•Asahi Breweries recognizes that realizing a sustainable society requires
an active commitment to tackling environmental problems and fulfilling
its social responsibility. To this end, the company believes it must gain
the understanding and cooperation of suppliers to fulfill its corporate
mission.

For the Global Environment•Asahi Breweries strives to fulfill its corporate social responsibility forpreserving natural resources and environmental conservation whenpurchasing products.

For Local Communities

Basic Purchasing Policy•Asahi Breweries asks all potential suppliers to complete an
Environmental Questionnaire and a Social Responsibility Questionnaire.
The company considers a potential supplier’s commitment to theenvironment and its social responsibility in the selection process.
•Asahi Breweries also asks suppliers to complete an Environmental
Questionnaire and a Social Responsibility Questionnaire at regularintervals after being selected. The company is committed toencouraging suppliers to provide maximum support its environmental
objectives to create a sustainable society. In this way, the company
believes it can build long and trusting relationships with suppliers.

CSR REPORT 2005

34

Structure of the Procurement Clean Line

Fair and Equal Purchasing
Procurement Clean LineThe Procurement Clean Line is a reporting system that current
and future business partners can confidently use in situations
where employees or the procurement division takeinappropriate actions in violation of the Basic Purchasing
Policy or fail to comply with legal requirements or social ethics.
In these situations, partners can contact Asahi Breweries
through such channels as Web sites. Issues are investigatedand verified by an objective, third-party organization
associated with the Corporate Ethics Committee, which
operates independently of the procurement division.
No cases were presented to the Procurement Clean Line in
2004. In addition, in regard to payment to business partners,
all contract items were properly fulfilled, including payment
dues and methods; no breaches of contract were filed.
Asahi Breweries is committed to strengthening complianceon a daily basis, increasing the transparency of purchasing
activities through the Purchasing Clean Line, and building trustwith business partners.

problem via
2 Reporting
email or postal mail
Current andProspective
Business Partners

Members•Director in Charge of Risk
Management•Executive in Charge of
Risk Management•Contractual Lawyer

Action in violation of Basic
1 Purchasing
Policy or Asahi

Breweries Group Business Ethics
Rule in the course of business with
Asahi Breweriesof
4 Review
Investigation
Corporate Ethics
Committee Office

Asahi Breweries
Headquarters
Procurement
Division

3 Investigationof required improvement when the
5 Notice
procurement division is at fault

Business Procedures
Prospective andCurrent Suppliers

Supplier Registration

Procurement Division in
Asahi Breweries Headquarters

Complete and return
entry sheet

Evaluate suppliercandidates based onentry sheet and send
application forregistration.

Complete and return
application forregistration andquestionnaires

Evaluate prospective
suppliers based on theapplications, and register
selected suppliers.

Submit new productproposal on materials

Examine andevaluate theproposal content.
For a newprospective
supplier, also
examineregistration.

Develop estimate
and offer bid

Present specifications.
Request estimate and bid.

Purchase Decision

Questionnaire on theEnvironment

Corporate Ethics Committee

6 Report

Questionnaires on the Social Responsibilities andthe Environment
Asahi Breweries requires companies that wish to initiate a new
business relationship to complete a Questionnaire on theSocial Responsibilities and Questionnaire on the Environment.
Purchasing items subject to these questionnaires are listed on
the Procurement Web site.
In 2004, we requested existing partners, as well as new
partners, to submit questionnaires, and all complied. In
addition, we shared feedback with them based on compiled
responses to improve mutual understanding.

Procurement CleanLine Organization

Not every candidate
continues to the next
step.

Interview and inspections
may be conducted
depending on theevaluation. Not every
candidate can beregistered.

Develop a plan topurchase materials.
Choose from among
the registeredsuppliers by referringto the results of theevaluation(registration, annual
and performance
evaluations).

Compare prices and other factors.
Choose supplier.
Use ARIBA

Questionnaire on the Social
Responsibilities

Trade

Purchase. Execute the trade.

35 CSR REPORT 2005

Review annual trades andevaluate annual performance.

The evaluatedresultFor Consumers and Civil Society

For Business Partners

With Distributors

The Asahi Breweries Group recognizes that customers enjoy
and appreciate its products because of the daily efforts ofwholesalers and retailers. Therefore, in the context of sharing
prosperity with distributors, the Asahi Breweries Group
implements measures to stimulate market growth and fortify
the management foundation of wholesalers.
For example, we introduced a new business deal systemfor beer and happoshu in January 2005. To promote a fairbusiness environment, the new system abolished the ThreeTiered Price System*1 and prohibited Incremental Rebates*2
for dealers under special contract.
Asahi Breweries continues to review its business systems inlight of the changes in alcoholic drink distribution and theoverall business environment, toward the goal of establishinga more efficient and sound distribution system.
*1 Three-Tiered Price Structure
A price structure in which the maker sets the production, wholesale, andretail prices.

Asahi Field Marketing Co., Ltd.
Supports sales section design andsales promotion based on
storefront marketing, withsuperstores, discount stores, andother mass merchandisers.

For Business Partners

Supporting the Activation and Strengthening ofManagement Foundations

Asahi Breweries Group Company Efforts

East Japan Asahi Draft Beer Service, Ltd. /West Japan Asahi Draft Beer Service, Ltd.
Promotes quality management ofdraft beer at restaurants andrecommends drink menus in linewith customer taste preferences.

For Shareholders and Investors

Shared Prosperity withDistributors

Full House Co., Ltd.
Provides advice to restaurants andconducts support activities such as
seminars and restaurant market
surveys.

*2 Increment Rebate
Rebate paid based on the amount of sales.

Asahi Distribution Research Institute, Ltd.

The number of retailers selling alcohol has been increasing
due to the deregulation of alcohol retail licensing in April 2003.
Consequently, Asahi Breweries established the Alcoholic Drink
Sales Training Program for distributors in July 2004.
Focused on the managers in charge of retail sales at shops,
this program is led by Asahi Breweries’ retail sales personnel
and includes instruction, DVDs, and eight textbooks fordeveloping the necessary expertise to sell alcohol.
Through this training program, Asahi Breweries continues
to raise public consciousness and standards for alcoholrelated issues such as moderate & responsible drinking. We
provide assistance for similar activities by retailers.

Provides timely industry information
to special dealers and conducts
support activities to strengthen
management.

For Local Communities

For Employees

Alcoholic Drink Sales Training Program

For the Global Environment

Textbooks for Alcoholic Drink Sales Training Program

CSR REPORT 200536

For Shareholders and Investors
A corporation’s fundamental responsibility is to generate revenue through sound,transparent business operations and return satisfactory value to shareholders.
In order to fulfill this responsibility, business must be conducted in accordancewith clear policies and plans. Communication with shareholders and investors is essential,
which requires disclosing appropriate management informationand incorporating their feedback into business management.
Asahi Breweries continues to proactively disclose detailed information
required by shareholders and investors, for the purpose of maintaining solid relationships
in Japan and overseas to fulfill their trust and expectations.

Shareholders’ Meeting

IR Web site

Reports on critical business mattersand adoption of resolutions.

Provides information forshareholders and investors.
The Asahi Breweries IR
Web site provides details
on the shareholders
courtesy program forindividual investors.

Customers
andCivil Society

Customers
Supporting
the Asahi Breweries Group’s
Corporate Activities

Shareholders’ Meeting, visiting investors abroad, IR Web site, news e-mail,individual investors meetings, analyst meetings and conference calls,
Asahi Super Report (business report in Japanese) and survey card,
English annual report, one-on-one meeting with institutional investors,
product exhibition and tasting session, etc.

Held to help shareholders
understand the Group’s diverse
projects and products.

37 CSR REPORT 2005

Local
Communities

Shareholders/
Investors

Relations with
Shareholders and Investors

Product Exhibition
and Tasting Session

GlobalEnvironment

Business
Partners

Employees

For Consumers and Civil Society

For Shareholders and Investors

Returning Value toShareholders

With respect to the priority on shareholder value, Asahi
Breweries strives to ensure that investors receive a continuing,
stable return based on financial results. In 2004, Asahi
Breweries increased its dividends by ¥2 per share to a total

Net Income per Share (Consolidated) andAnnual Dividends
(Yen)

(Yen)

80
13.0

12.0

13.0

13.0

62.5

46.8

40
27.0

Annualdividends
per share

12
8

28.9
Net income 4
per share
0

0

-40

16

15.0

New Shareholders Courtesy Program
In line with our commitment to incorporate shareholder
feedback into corporate management and operations, thecompany launched a shareholders’ courtesy program in2003 after receiving many requests through a survey. Once a
year, shareholders can select a courtesy gift, such as a
specially brewed beer or a gift package containing products
from affiliates. Shareholders can also choose, in lieu ofreceiving a gift, to have the company make a donation ofcomparable value to the Asahi Breweries’ Mizu no Wakusei(water planet) Environmental Fund* as a contribution to forest
protection and greening activities.

For Shareholders and Investors

Returning Value to Shareholders through
Increased Dividends and Repurchase of Shares

For Business Partners

annual dividend of ¥15, and repurchased about ¥6.8 billion ofits shares in 2004. We continue to review and implement avariety of actions, including increasing dividends andrepurchasing shares, to return value to shareholders in thecontext of the prevailing business environment.

Basic Policy and Commitments
in 2004* Asahi Breweries’ Mizu no Wakusei Environmental Fund
Created to protect water, an essential component of beer, andgreenery, which is essential for fostering clean water (p. 60).

-31.5

2000

2001

2002

2003

2004

For Shareholders and Investors

To encourage as many shareholders as possible to attend,
the company moved the venue for the 2004 Shareholders’Meeting from the Asahi Breweries’ headquarters, the site ofearlier meetings, to a hotel in central Tokyo with better
accessibility and a larger space. As a result, 1,118
shareholders attended in 2004 and 1,529 participated in 2005.
Comments received from shareholders attending themeeting in 2005 included appreciation for the high value that
Asahi Breweries places on individual shareholders and for thepolite stance and sincerity of the chairman.
Shareholders who are not able to attend annual meetings
can exercise their voting
rights via the Internet.

For the second consecutive year, a product exhibition andtasting session was held after the Shareholders’ Meeting in2005 with good attendance.
The event showcased Asahi Breweries Group’s products
and courtesy gifts and offered free samples of main and new
products for participants to taste. A display panel illustrated
CSR activities and we provided an introduction to ourbreweries tours.
Directors participating in the event in 2005, including thechairman and the president, directly listened to shareholders’opinions and requests. Attendees expressed being very
impressed by the presence of the chairman and the president
and they looked forward to having an opportunity like thisevery year.
Other participants commented that they had not realized thevariety of products offered by Asahi Breweries other than beerand happoshu and that it was nice to try many types of
products. This event has proven to be a very significant
opportunity for participants, including individual shareholders, todeepen their understanding of Group operations and products.
We will continue to promote better understanding of the
Asahi Breweries Group among shareholders.

For Local Communities

Larger Venue Used for Shareholders’ Meeting

Promoting Understanding through the Product
Exhibition and Tasting Session

For the Global Environment

Shareholders’ Meeting, Product
Exhibition and Tasting Session

For Employees

Communication with
Shareholders and Investors

Product exhibition and tasting session

CSR REPORT 2005

38

Basic Policy on Information
Disclosure
Prompt and Fair Information Disclosure
Asahi Breweries’ basic policies on information disclosure statethat information should be disclosed in accordance with thetimely disclosure regulation of the Tokyo Stock Exchange
where its securities are listed, and that even in cases which do
not fall under the timely disclosure regulation, information
deemed related to investment decisions should be disclosed
voluntarily and fairly. The company complies with statutory
disclosure standards under these basic policies. Asahi
Breweries also voluntarily discloses information at the requestof shareholders, investors, and financial analysts inside andoutside of Japan, and keeps them informed of the current
status of corporate operations.
Voluntarily disclosed information includes the Medium-Term
Management Plan, monthly taxable shipments for beer andhapposhu, and presentation documents related toannouncements of results. In order to ensure thatshareholders and investors inside and outside of Japan
receive the same information in a timely manner, video
coverage of interim and annual results announcements, withsimultaneous interpretation voiceover inEnglish, is provided on the Asahi
Breweries Investor Relations Web site.
Conference calls can also be accessed
via audio webcast.
These basic policies, information
disclosure methods, and voluntarily
disclosed items are posted on the IR
Web site under the Disclosure Policy.
Video streaming display

IR Web site
http://www.asahibeer.co.jp/english/ir/index.html

Specific Channels for
Information Disclosure

After the Shareholders’ Meeting (p. 38), a product exhibition
and tasting party is held to help deepen shareholder
understanding of the Asahi Breweries Group. The event also
provides an opportunity for direct dialogue with Asahi
employees on the company’s products. We strive to include
feedback from occasions like these into our corporate
operations.

Releasing Information to Individual Investors via
the Internet
In July 2004, Asahi Breweries started an e-mail news service
to help investors more clearly understand the company. The
service provides such information as updates on the IR Web
site, press releases, new product development, andcampaign events.
As an additional reference for individual investors, the Asahi
Breweries IR Web site was set up on the existing IR site tooffer information on stock investment.

Results Announcement Meeting and Road Show
for Institutional Investors
Following the announcements of interim and fiscal year-end
results, meetings are held for institutional investors in Japan.
The president, financial officer, and other directors attend
these meetings to report on business results, positive andnegative factors affecting earnings, and future management
strategy and actions.
Teleconferences are held on the same day as theannouncements of quarterly results. We receive manyquestions and suggestions from financial analysts andinvestors in these meetings and teleconferences.
For individual investors overseas, the company issues anannual report in English and thelatest results are posted to ourEnglish Web site. The president
and financial officers also explain
the medium- and long-term
strategy of the Group at “roadshow” meetings held every
year in the United States andEurope.

Promptly Releasing Information to Shareholders
and Using Interactive Communications
Asahi Breweries releases the Asahi Super Report (business
report in Japanese) to regularly disclose information toshareholders. For the sake of more timely disclosure, thereporting frequency was changed from an interim to aquarterly basis starting in December 2004. A survey card is
attached to the report to promote two-way communication
with shareholders.

39 CSR REPORT 2005

Annual ReportFor Consumers and Civil Society

For Shareholders and Investors

Evaluations by External
Review Organizations
External Evaluation on Information Disclosureand IR

Status of SRI and Inclusion of CSR-related
Indices
Awareness of Socially Responsible Investment (SRI) continues
to grow. In addition to standard financial indices, SRI includes
criteria that focus on corporate commitment to society andprotecting the environment.
Many institutions inside and outside of Japan evaluate SRI,
and Asahi Breweries is traded as part of several SRI indicesand funds.

The Security Analysts Association of Japan selected Asahi
Breweries as the No. 1 food company in Japan in IR efforts
for fiscal 2004 by presenting the company with the Award for
Excellence in Corporate Disclosure at the association’s ninth
awards ceremony. Asahi Breweries also received the Japan
Investor Relations Association’s Excellence in IR Award forfiscal 2004. The Group’s Annual Report 2003 received theAward for Excellence from the Seventh NIKKEI Annual ReportAwards 2004* in December 2004.

For Business Partners

Responses toExternal Evaluations* NIKKEI Annual Report Awards 2004
The award, sponsored by Nihon Keizai Shimbun, Inc., was initiated in 1998 toincrease awareness of Japanese corporate annual reports and encourage
improvement in quality.

Dow Jones(U.S.A.)ETHIBEL(Belgium)

FTSE*1(U.K.)

Morningstar*2(Japan)*1 FTSE“FTSE Group is delighted to confirm that ASAHI BREWERIES, LTD. has been
independently assessed according to the FTSE4Good criteria, and as of March 2004
has satisfied the requirements to become a constituent of the FTSE4Good Index Series.
Created by the independent financial index company FTSE Group, FTSE4Good is afinancial index series that is designed to identify companies that meet globally
recognised corporate responsibility standards. Companies in the FTSE4Good IndexSeries are doing more to manage their social, ethical and environmental impacts, andare better positioned to capitalize on the benefits of responsible business practice.”

Evaluation of the Asahi BreweriesGroup at Japan Investor Relations
Association’s Excellence in IR Award
for Fiscal 2004
(The Japan Investor Relations Association)•Details of monthly data and business results are highly
evaluated.
•Earnings forecast includes information that captures investor
interest.
•IR department proactively discloses information andresponds to media requests at any time of the year.
•Top executive directly delivers and clarifies the management
plan.
•Presentation documents uses charts and figures to makethe report easy to understand.
•The Group improved IR activities during the year and isaggressively engaged in IR for individual investors.

For Employees

As of June 2005, Asahi Breweries is included in the followinginternational SRI indices: Dow Jones Sustainability Index(U.S.A.), ETHIBEL Sustainability Index Global (Belgium), and
FTSE4Good Global Index (U.K.). In July 2004, the company
was included in the domestic index, Morningstar Socially
Responsible Investment Index.

For Shareholders and Investors

Status of SRI Inclusion*2 Morningstar

For Local Communities

Morningstar Socially Responsible Investment Index is the first SRI stock price index in
Japan, and is composed of 150 leading companies in their contributions to the society,selected from listed companies.

Ceremony for Excellence in IR Award

Objective Assessment of Corporate Activities andOperations

CSR REPORT 2005

For the Global Environment

To improve our efforts in management, compliance,
employment, and environmental protection, we take seriously
the results of assessments conducted by externalorganizations beyond our own internal independent
assessments. We ensure that corporate planning andactivities address urgent tasks or issues that require
improvement.

40

For Employees
Providing the highest quality products to consumers requires a pleasant and lively work environment
in which each employee can develop his or her skills. Therefore, Asahi Breweries takes action
to eliminate and prevent any form of discrimination on the basis of race, nationality, creed, gender, or any factor
unrelated to employees’ performance of their duties. Our recruitment, assignment, and performance evaluation procedures
take into account the fundamental human rights of applicants and employees. Asahi Breweries remains committed tocreating a pleasant work environment for its employees from a variety of perspectives and approaches.
This includes implementing education guidelines that encourage employees to independently pursue their own personal development,
improving self-development programs, establishing a health management system for employees, creating a pleasant workplace
for women and physically challenged employees, and setting up a disaster-prevention system for earthquakes and other disasters.

Career Design Sheet
Asahi Breweries’ personnel system forplacement and transfer puts importanceon dialogue with employees and uses a
Career Design
Sheet on which
employees can
express theircareer vision overthe next 10 years.

Training and Education
Programs
Various training and education
programs support employees indeveloping their skills and abilities.

Customers
andCivil Society

Customers
Supporting
the Asahi Breweries Group’s
Corporate Activities

Local
Communities

Shareholders/
Investors
Employees

Relations with Employees
Career Design Sheet, Cafeteria Plan, training and education programs,
Life Plan Check Sheet, Occupational Safety
and Health Committee, ASAHI WELL NET, etc.

ASAHI WELL NET
This comprehensive health management
system keeps track of health check-ups
for all employees and allows them to viewthe results of past check-ups andcompare them to their current condition.

41 CSR REPORT 2005

GlobalEnvironment

Business
Partners

For Consumers and Civil Society

For Employees

Equality and Fairness
in Employment
Increasing the Employment Rate of the Physically
Challenged

Number of Employees(on a Non-Consolidated Basis)
3,500

3,086

3,213

3,417

(As of the end of December)

3,249

3,193

3,000
2,500
2,000
Men

1,500
1,000
500

Women
526

566

578

530

507

2000

2001

2002

2003

2004

0

For Business Partners

Asahi Breweries recognizes that sustainable growth cannot
be attained without excellent human resources and a pleasantwork environment in which all employees can work
comfortably and develop their skills. From this viewpoint, we
conduct interviews with the applicant or employee todetermine the appropriate hiring decision or performance
evaluation. These dialogues encompass a broad perspectiveof abilities, expertise and skills, and avoid any form of
discrimination on the basis of race, nationality, creed, gender,or any factor not related to the employee’s performance, in
accordance with the Asahi Breweries Group Business Ethics
Rule.

For Shareholders and Investors

Recruitment and Performance Evaluation Basedon the Individuality of Each Applicant and
Employee

As of June 2004, 2.01% of the company’s workforce consistsof people with physical challenges, exceeding the legal
mandate of 1.8%.
In accordance with the employment policies prepared by
the Personnel Department, we frequently contact schools andjob centers for the physically challenged in our recruitment
efforts. The recruitment process is designed so that applicants
are able to take alternative forms of testing to eliminate any
disadvantage due to their disabilities.
Asahi Breweries assists the physically challenged tocontinue working over the long term by continually improving
existing work sites and creating a workplace in which they
can fulfill their potential.
In addition, some of ourmanagers who supervise
physically challenged
employees have beencertified as vocational life
consultants for thedisabled. We have also
installed handrails andaccess ramps to establish
a comfortable andpleasant working
environment.
Asahi Breweries strictly
enforces its policy oflimiting access to personal
information regarding theSheltered parking space for physicallydisabilities and illnesses of challenged employees in wheel chairs isprovided at the entrance (Hokkaido
employees.
Brewery).

For Employees

Employment Policies
and Situations

Employment of Foreign Nationals

For Local Communities

Labor Union Relationships
Coordinated Resolution of Labor-Management
IssuesLabor unions have been formed at Asahi Breweries andcertain affiliates. Open communications are maintained
between management and labor through negotiations andmeetings, including the spring convening of the Wage
Negotiation Meeting, and the monthly meetings of the
Personnel System Committee, the Comfort and Prosperity
Creation Committee, and the Committee on Health andWelfare.

For the Global Environment

Asahi Breweries hires non-Japanese employees and newcollege graduates, who are employed and evaluatedregardless of their nationality. We also work to recruit andretain a wide variety of foreign mid-career workers based on
evaluations of their expertise as well as knowledge oftechnologies or languages. When working visas are required
prior to employment, the company will conclude the required
work contract, reference papers and provide details in therequired format on why the person is being employed. The
company strives to create a comfortable work environment for
non-Japanese employees.

CSR REPORT 200542

For Employees

Labor Health and Safety

Creation of Safe andPleasant Work Environments
Occupational Safety and Health Committee
The Asahi Breweries Group understand that creating a safe
environment in which all employees of the Asahi BreweriesGroup—contract, temporary, and part-time employees aswell as temporary workers dispatched by personnel
agencies—can work comfortably is a top priority.
Therefore, Asahi Breweries convenes an Occupational
Safety and Health Committee at each worksite as a monthly
discussion forum for representatives of labor andmanagement.
In order to raise awareness of safety across the entire Asahi
Breweries Group, safety management personnel training
seminars are conducted under the guidance of a visiting
lecturer. In addition, information exchange sessions are
regularly held to share knowledge and expertise regarding
safety and health in each workplace.
One of the safety management personnel training seminars
held in 2005 was a workshop for the entire Group, introducing
risk assessment techniques for categorizing potential risks
according to principles of our safety and health management
system.

Safety Management Personnel
Training Seminars
Asahi Breweries Group holds safety management personnel
training seminars led by a visiting lecturer twice a year for
newly appointed safety officers at each Group company.
Participants receive practical, experience-based training on
the skills and check points for inspecting worksites, alongwith the principles of risk assessment.
The seminars also serve as a platform for exchanging
information among companies of the Asahi Breweries Group.
Each participant shares thesafety plans and specificactivities of their worksite aswell as safety-oriented
education, training methods
and cooperation withaffiliates and suppliers
related to safety.

Disaster-Prevention Activities for Earthquakes
Asahi Breweries has strengthened its risk management
measures for various potential disasters such as earthquakes.
For example, emergency procedure manuals in the event ofearthquakes have been prepared and placed at appropriate
locations. A comprehensive system is in place for checking
into and confirming the safety of victims that encompasses
the stockpiling of emergency supplies, upgrading

43 CSR REPORT 2005

communication equipment such as satellite cellular phones,
and introducing a safety confirmation system*.
Furthermore, Asahi Breweries has implemented additional
measures for factories and sales offices located inearthquake-prone areas, such as seismic retrofitting andlarger stocks of emergency supplies. The number of areas
requiring these measures is on the rise. The company has
relocated its information systems to a secure building in theevent of an earthquake directly below the Tokyo metropolitan
area. We are also improving our business continuity plan forlarge-scale earthquakes. Regular drills are conducted forother disasters such as
fire, and training isprovided to prevent therelease of harmful
substances in the wakeof a disaster. Employee
volunteer firefighting
teams are organized ineach worksite.
Disaster drill* Safety confirmation system
A system designed to facilitate inquiries and confirmation of victim safety
following a major disaster by storing emergency contact numbers andaddresses of employees in a database.

Employees Health Management
Mental Health Care Practice
Asahi Breweries provides regular health check-ups for all
executives and employees.
The results of these check-ups are complied in a databaseon ASAHI WELL NET, a computer-based health management
system set up for this purpose. Employees can easily confirm
and manage their physical condition at any time by reviewing
the results of their examinations. The company allows only
one in-house information manager to have access to theentire database.
The company supports the mental well-being of employees
as well as their physical health. Internal specialists in industrial
medicine, nurses, and health visitors are on hand to spot early
warning signs of stress and help to prevent stress-related
problems. In addition, the company contracts with specialists
at university hospitals toprovide mental healthexaminations for each
employee. Professionals
in the field are alsoavailable to train
managers on how to help
their subordinates handle
mental health issues.
ASAHI WELL NET

For Consumers and Civil Society

For Employees

Training and Education

For Business Partners

Raising Next-generation Business
Leaders:
A series of lectures was started at the Asahi Business Leader
Development School to cultivate next-generation
management talent and at the Asahi Business College,
mainly for executives. Training sessions based on MBA-levelstudies help business leaders acquire world-class knowledge
and thinking skills.

For Shareholders and Investors

Asahi Breweries encourages the development of employees
who are capable of bettering themselves independently for
their own personal development. Various training programs
are offered to correspond with employees’ willingness to growat their own pace, such as rank-based programs including
introductory training for new employees, as well as self-study
programs and professional training programs.
The company also established the Asahi Business Leader
Development School to nurture next-generation management
talent and provide a system for supporting employees in
obtaining special qualifications for professional careerdevelopment. The curriculum aligns with our overall approachof enabling employees to improve their abilities by themselves
and for themselves as a driving force for the company’s own
development.
In the years ahead, Asahi Breweries will press on withefforts to establish a human resource development systemthat further enhances Group synergies by clarifying
requirements for each company, department, management,
and employee, and developing suitable education programs
to meet these requirements.

Self-study programs consist of three options: selective
training, correspondence courses, and e-Learning via theWeb. Employees can select from more than 300 menu items,
to construct a suitable curriculum for their specific needs.

Cultivating Professionals:
Professional training programs are conducted, including asystem for helping employees obtain special certifications, aswell as department training sessions and workplace training,
so that trainees are able to practically apply what they havelearned, rather than just gaining abstract knowledge.

Major Training Programs
Optional programs

Asahi Business Leader Development
SchoolRank-based programs

Introductory training for new recruits,
Training for newly appointed supervisors(producers)

Self-study programs

Selective training, Correspondence
courses, and e-Learning

Professional training programs

System for supporting employees toobtain special qualifications, Asahi
Business College

Department-based programs

Department training sessions,
Workplace training

For Employees

Supporting Employees in Improving Their Abilities

Improving Individual Skills throughSelf-study Programs:

For Local Communities

Basic Policies and Major Training
and Education Programs

For the Global Environment

Introductory training for new recruits

Selective training

CSR REPORT 200544

For Employees

Creating a Pleasant
Work Environment
Personnel Evaluation and
Performance Rating
Applying an Interview-Oriented Performance
Review System
Asahi Breweries’ performance and merit review system forpersonnel evaluation is designed to energize individual staff
and worksites. At the heart of the system is an employee
interview which is conducted within the framework of theemployee’s own initiative.
The process involves two stages. First, based on personnel
evaluation standards made available to all employees,
managers conduct interviews with each employee every six
months to review performance, identify areas to review andconsider, and ultimately come to a joint assessment of theemployee’s work. Then, the overall director of the worksite oranother manager at a comparable level reviews the evaluationand makes a final determination in order to prevent
assessments that are inflated or excessively strict. Some
departments have adopted multi-rater evaluations thatincorporate the perspectives of supervisors as well as
colleagues, assistants and subordinates to provide a wider
scope of feedback for cultivating human resources.
Supervisors thoroughly review with employees the results ofthese personnel evaluations, as well as their own comments,
so that employees can fully understand and agree with theresults.
In 2003, thecompany introduced
Challenge Targets to
support employees
who aggressively
demonstrateindividuality andenthusiasm forsuperior achievement.

Challenge Targets
To release a new corporate spirit in which employees cantake risks without fear of failure, Asahi Breweries has been
implementing Challenge Targets to encourage employees to
do something exciting. The goal of the system is to help
employees achieve innovations and improvements beyond
standard performance targets and generate results thatsignificantly surpass standard performance targets. There are
no demerits for eligible employees under this system.
Accomplishments identified during their personnel
evaluations in each business term are added to their overall
performance reviews.

45 CSR REPORT 2005

Career Design Sheet
Asahi Breweries has also established an interview-oriented
system for employee transfers and deployment.
Personnel Department at the company’s head office andother worksites regularly review the local needs of each
worksite, individual circumstances, and personnel evaluationof each employee. At the same time, a Career Design Sheetis used to facilitate personnel decisions and help employees
formulate long-term plans. Employees are asked to provide
comments on the sheet that describe their desired line ofwork and workplace as well as the type of work they want to
be doing in 10 years. In determining the appropriate position
for an employee, the Personnel Department takes into
consideration information gathered by staff members at thehead office and worksites as well as the employee’s own
wishes as recorded in the Career Design Sheet.

Career Design Sheet

Research on Working Situations in
Overseas Worksites
For worksites outside Japan, Personnel Department staff
members meet with all overseas transferees once a year todetermine their individual situations. Through these meetings,
staff gather information on the working environment for local
employees and other information that arise in the course of
conversation with employees.

Support Systems
Maternity leave system

Employees are allowed to take leaves ofabsence of up to 14-weeks for pre- and postnatal care.

Childcare leave system

Employees are allowed to take leave when
they have children under the age of two years.

Family care leavesystem

Employees who provide care for relatives areallowed to take leaves of absence up to one
year within a two-year period, as well as theright to start or leave work two hours earlier orlater than usual.

Exemption from fullworking hours forchild care

Employees who provide care for elementary
school-aged children in third grade or below
or other children under school age are allowed
to start or leave work one hour earlier or later
than usual.

Exemption from fullworking hours forfamily care

Employees who provide care for family
members who are eligible under this system,
are allowed to start or leave work two hours
earlier or later than usual.

Raising Awareness of
Human Rights
Prohibiting Sexual and Power Harassment
Asahi Breweries Group Business Ethics Rule expressly statesthat “The Company shall respect all fundamental humanrights of its employees in accordance with the principles of the
Global Compact. There shall be no forms of discrimination on
the basis of race, nationality, creed, religion, physical ability,
age, gender, sexual orientation, or any other factor unrelated
to an employee’s execution of their duties.” For this reason,
the company does not allow any form of discrimination,

For Consumers and Civil Society
For Business Partners

Measures against Sexual Harassment

For Shareholders and Investors

Sexual harassment is completely prohibited in accordancewith the Asahi Breweries Group Business Ethics Rule. Asahi
Breweries’ manual on the prevention of sexual harassment isavailable on the company’s Intranet, where employees canreview it at any time. The company actively raises publicawareness of such issues by conducting educationalseminars and encouraging employees at each worksite toparticipate in public seminars.
If a sexual harassment complaint should be made, themanagers in charge of general affairs and related staff in the
Personnel Department and each worksite coordinate in
implementing appropriate measures and ensuring that (1) the
person bringing the complaint does not suffer any
disadvantages from making the complaint, (2) the privacy of
all concerned parties is protected, and (3) the complaint isquickly investigated. Severe measures are provided under thecompany rules for any complaint of sexual harassment that is
substantiated.

For Employees

Asahi Breweries provides employees with support systems at
levels that exceed legal mandates. Consequently, employees
are able to take maternity leaves as well as childcare andfamily-care leaves while retaining their positions at theirworkplace.
Employees are allowed to take up to 14-weeks as leave ofabsence for pre- and post-natal care. During this period, aportion of their salary is paid by corporate health insurance.
Childcare leaves may be granted for employees who havechildren under the age of two years. This benefit is alsoavailable for male employees.
Leave to care for family members is limited to 12 months
for each family member within a two-year period from thestart of the first such leave. During this leave, the company
provides some benefits to supplement income.
In addition, Asahi Breweries allows shorter working hours,
limits overtime work, and grants exemptions from midnight
shifts to employees who are taking leaves for childcare or
family care.

Health and Welfare Systems
A Unique Welfare Program through the Cafeteria
Plan
Conventional health and welfare systems offered by companies
are no longer adequate for the increasingly diverse working
patterns and life styles of employees at Asahi Breweries.
Therefore, in 2002, Asahi Breweries introduced the
Cafeteria Plan (a selective benefits system), which allows
employees to freely make choices that correspond with theirlifestyles and life plans.
The Cafeteria Plan consists of seven main categories:
building wealth, housing, health, children’s education, selfinvestment, emergency funds, and other. These categories
contain a total of 42 specific options. Points given to
employees each year can be used tohelp defray the costs of care programs,children’s education, sports clubmemberships, foreign language study,
or other qualification courses.
In 2004, the procedures for this plan
were simplified. A Life Plan Check Sheet
was prepared and distributed to all
employees to explain the fundamentalsof this plan.

For Local Communities

Support Systems that Exceed Legal
Requirements

including power and sexual harassment.
The company has established a reporting and response
system for issues related to human rights, which includes a
consultation service section in the Personnel Department aswell as the General Affairs Department at worksites to deal
with such issues.
There have been no reported issues related to child labor orforced labor.

For the Global Environment

Maternity Leave, Childcare andOther Family Care

Life Plan Check Sheet

CSR REPORT 200546

For Local Communities
The guiding principle behind every activity of Asahi Breweries isto promote healthy living and the enrichment of society worldwide.
Therefore, as a responsible corporate citizen,
we actively participate in cultural and community activities
that are not directly associated with our food-related business operations.
We encourage the growth and development of local communities,
work with artistic and cultural activities that provide opportunities for young artists,and support employees in volunteer activities that they choose.

Water Resource
Preservation Activity

Newsletter
We publish Asahi Breweries
MÉCÉNAT, a free newsletter that
introduces our patronage of the arts.

Every brewery of Asahi Breweries
works with local community
residents and NPOs to preserve
water resources.

Customers
andCivil Society
GlobalEnvironment

Business
Partners

Customers
Supporting
the Asahi Breweries Group’s
Corporate Activities

Local
Communities

Shareholders/
Investors
Employees

Relations with Local Communities
Newsletter, Nature School, Water resource preservation activity,
Web site on social and cultural contributions, KIDS Project, etc.

KIDS Project
Employees plan and carry out
social events with children living in
welfare facilities.

47 CSR REPORT 2005

For Consumers and Civil Society

For Local Communities

Social and Cultural
Contributions

The Asahi Breweries Group works hard to contribute to “thepromotion of healthy living and the enrichment of society
worldwide.” These actions focus on revitalizing anddeveloping local communities, realizing a barrier-free society,promoting and disseminating art and culture, conserving the
global environment and developing an international society. In
2004, we focused on actions that contributed to local
communities and fostered communications.

Since the establishment of the Corporate Culture Department(currently the Social & Environmental Management
Department) in 1990, our artistic and cultural activities havebecome more organized and well-planned. Our basic
concept is Future, Citizens, Local Communities. Creating theculture of tomorrow depends on providing a bridge between
citizens and the arts, and recovering local resourcefulness
through unique activities that are deeply rooted in the local
community.
Activities include Lobby Concerts, Food Culture Seminars,
the Asahi Art Collaboration Exhibition, Asahi Arts Festival andmanagement of Asahi Arts Square, which opened as a newcenter for increasing exposure to cultural expressions.
In 2004, we sponsored or supported programs incooperation with NPOs nationwide. These activities werehighly regarded. The Asahi Arts Festival received theContemporary Composite Art Award in the 2004 MécénatAwards. In addition, Asahi Breweries set up two foundations
intended to promote cultural development. The Asahi Beer
Arts Foundation operates the
Asahi Beer Oyamazaki Villa
Museum and fosters artistic
and cultural activities focusedon the arts and music, while
the Asahi Breweries
Foundation supports research
about food.

Asahi Breweries Group’s engagement in communityand cultural activities is intended to help enrichcommunities across the world at the local andregional levels. Through these activities, Asahi works
to win the trust of the communities it serves and toshare in the excitement of their growth and prosperity.
The Group therefore aims to contribute tocommunity development through the social
awareness of its employees, along with an open
corporate culture and abundant creativity.

Guidelines for Action
1. Challenging the new and the unknown, andconstantly generating the highest possible culturalvalue.
2. Stressing the importance of communication within
the community and helping to deepen mutual
understanding.
3. Engaging in society by participating in community
activities.
4. Fostering future cultural development by
participating in creative Mécénat activities.
5. Meeting the challenge of creating a new corporate
culture by encouraging employees to volunteer incommunity and cultural activities.

Important Goals
1. Contributing to the revitalization and improvementof local communities.
2. Contributing to the realization of a community that
ensures access for all people.
3. Contributing to the creation of new culture andliving art.
4. Contributing to the protection of our global
environment.
5. Contributing to the development of a global society.

Contemporary Composite Art Award
ceremony

Assistance for NPOs and NGOs
Asahi Breweries has been actively supporting theorganizational meetings for Arts NPO Link, which was formallyestablished in October 2004, since the completion of its draft
plan. The objectives of Arts NPOs Link are to connect Arts
NPOs nationwide, address common issues, and develop
supportive environments for NPO activities. Arts NPO Link
was proposed in the first Arts NPO Forum in Japan in 2003
and founded in the second forum in 2004. Asahi Breweries’
assistance to the organizational meetings helps to accelerate
the progress of Arts NPO Link and encourage active citizen
participation in the arts.

For the Global Environment

Philosophy of Community andCultural Activities

For Shareholders and Investors

Supporting the Development of Artistic andCultural Activities

For Employees

Toward Realizing a Healthy and Prosperous
Society

For Business Partners

Supporting the Arts and Culture

For Local Communities

Basic Principle andFocus of Activities

CSR REPORT 2005

48

Contributing to Society
Ongoing Contributions to Society
Our ongoing contributions to society include KIDS Project, avolunteer activity initiated by employees; Nature School soil
and water courses, which help people in wheelchairs to enjoy
rice planting and fishing; and Artbility—Asahi Breweries
Encouragement Prize, which supports physically challenged
artists. We conduct these activities in cooperation with various
NGOs and NPOs.

KIDS Project
Asahi Breweries employees developed this project to provide
children living in welfare facilities with greater opportunities forsocial interaction. The project is set up in six locations
nationwide. All recreational events and social gatherings areplanned and carried out by employees themselves.

Donations to Various Areas
Asahi Breweries makes donations in a wide range of fields,such as culture and the arts, the environment, community
activities, health and medical science, social welfare, formal
and social education, academic research and studies,international exchange and cooperation, and sports. We
select recipients and determine the appropriate level of
support through careful ethical and legal reviews. In 2004, we
donated approximately 800 million yen.
Of this total, 46 million yen was donated to the victims of
the Niigata Chuetsu and Sumatra earthquakes, including over
5.8 million yen contributed by employees. We also donatedAsahi Beer products and a “rainy day” reserve.

Barrier-Free Brewery
Asahi Breweries strives to make its facilities barrier-free, sothat all members of society enjoy convenient access. For
example our breweries, which welcomes many visitors,
provide visitor ramps and tours in sign language.

Drawing class

Nature School
This is a project for children and adults in wheelchairs. The
water course, started in 1999, offers opportunities to enjoy
fishing in mountain streams and surfing in the ocean. In thesoil course, which started in 2000, participants dig potatoes,
plant rice, and weed from snow sleds. They are even able toharvest rice that they planted. Representatives from NPOs
and local farmers participate along with employees. As of theend of December 2004, 160 physically challenged people,
279 employee volunteers and 550 NPO representatives andlocal residents have participated in this project.

Rice planting in the Nature School soil course

Artbility—Asahi Breweries
Encouragement Prize
Artbility is a project for physically challenged artists and ismanaged by Tokyo Colony, a social welfare corporation.
Asahi Breweries supports the project and has participated in
the Artbility Awards since their inception. Asahi Breweries
awards the Asahi Breweries Encouragement Prize tophysically challenged artists who show significant promise.

49 CSR REPORT 2005

For Consumers and Civil Society

For Local Communities

Local Community Activities
and Collaborations

Environmental Events for Parents and Children

Water Resources Conservation

Every year, many people visit the Asahi breweries, all of which
conduct special tours for parents and their children under thetheme of recycling. A total of 1,800 people visited breweries in
2004. In addition to brewery tours, the Nagoya andKanagawa Breweries conducted events for parents and theirchildren focusing on the environment.

Since Asahi Breweries depends on water as a principal raw
material, we are responsible for conserving the forests whichplay a vital role in sustainable water resources. Although mostof Japan is covered by forests, some national and private
forests have been ruined because of inadequate care forthem. Therefore, Asahi Breweries has become involved innurturing forests which protect water resources.

For Shareholders and Investors

Eco Press Club

Kanagawa Brewery
In March 2004, Kanagawa Brewery sponsored Eco
Exploration Party to provide an opportunity for interacting withnature. Sixty parents and children participated. After touring
the brewery with a special focus on ecology, participants wereguided by a forestry instructor in exploring the natural
surroundings of the brewery site and observing small animals
and plants. Children used magnifying glasses to examine theshape of flowers. The instructor explained the origin of flower
names, adding to the children’s enjoyment of the event.
The Kanagawa Brewery decided to use the site as ademonstration of ecosystem recovery and for environmental
education. Artificial waterways were laid out in the southerneast portion of the brewery site and the Firefly Pond (Biotope)
was created in harmony withneighboring vegetation.
Fireflies are raised on the site.
In 2004, local elementary
school students were invited
to participate in an event torelease larvae. At the end ofMay, they returned to see theadult insects glowing at night.

Shikoku Brewery
Since 2004, the Shikoku Brewery has been working toconserve the forest ecology of Mt. Ishizuchi, which supplies
water for brewery operations. The Shikoku Brewery joined withbusiness centers, Matsuyama Branch and Shikoku Regional
Headquarters, in trimming undergrowth and cutting vines.
The Shikoku Brewery developed the activity plan incooperation with the Ishizuchi Water Resources Forests Club,a volunteer group that has long conserved water resources in
the Toyo basin, and with local forestry instructors. A total of
100 people participated, including local residents, local NPOs,and employees. Local residents were invited through e-mailmagazines and Web sites. Most participants came from theneighboring Saijo and Matsuyama cities. Parents and children
also took part. The Shikoku Brewery is committed tocontinuing such efforts to nurture forests.

For Employees

Nagoya Brewery
In April and July 2004, Nagoya Brewery organized Eco Press
Club events, in which a total of 86 parents and children
participated in brewery tours as “newspaper reporters” whointerviewed employees at work and created an ecology
newspaper. After the events,
the newspapers wereavailable in the brewery as
an additional source of
information about
environment activities fromthe customer’s perspective.

For Business Partners

Exchange Activities and Collaborations
with Local Residents and NPOs

Asahi Breweries is planning for all breweries nationwide to
be involved in projects for conserving water resources by theend of 2006, following the successful efforts of the Nagoya
and Shikoku Breweries. In addition, the company isexpanding activities to include Asahi Soft Drinks Co., Ltd. and
The Nikka Whisky Distilling Co., Ltd., which are other Group
companies that use water as a raw material. Working from along-term perspective, Asahi
Breweries will nurture water
resources as “village forests”
that supply precious water toeach brewery. The
companies will help plant
trees, trim undergrowth andprune trees to encourage
their healthy growth.

For Local Communities

Brewery Activities
with Local Residents

Conserving water resources at the
Shikoku Brewery

For the Global Environment

Eco Exploration Party

CSR REPORT 200550

Asahi Forest, owned by Asahi Breweries

For the Global Environment
Barley, hops, and clear water are products of the land.
To protect these precious blessings of nature and pass them on to future generations,
Asahi Breweries is addressing the responsible use of resources and energy
and working to reduce the environmental burden associated with the production of beer and happoshu.
Beyond reducing the environmental burden of the breweries,
we also promote comprehensive environment protection activities across the entire supply chain,from production and logistics to sales and consumption.

Environmental Culture
Seminars
We conduct Asahi Beer Environmental
Culture Seminars, which include theparticipation of
guest lecturers
who discuss
environmental
issues withparticipants.

Customers
andCivil Society

Brewery Eco TourThe tours introduce the environmental
protection efforts of Asahi Breweries andprovideopportunities toreflect onenvironmental
issues.

GlobalEnvironment

Business
Partners

Customers
Supporting
the Asahi Breweries Group’s
Corporate Activities

Local
Communities

Shareholders/
Investors
Employees

Promoting Consideration of
the Global Environment
Environmental Culture Seminars, Brewery Eco Tour,Web site summarizing environmental protection activities, water
resources protection activities, environmental education, Environmental
Communication Report Reading Groups, Asahi Eco Space, etc.

Asahi Eco SpaceAsahi Eco Space—Minerva’s Forest is on
permanent display in the headquarters of Asahi
Breweries, to illustrate the company’scommitment to addressing environmental issues.

51 CSR REPORT 2005

For Consumers and Civil Society

For the Global Environment

Environmental Impact
of Business Activities

Environmental Burden from Raw Materials to
Consumption and Disposal
Asahi Breweries collects and analyzes data on the use ofresources and energy as well as the environmental burden
generated at each stage, from raw materials and resources,

For Business Partners

production and logistics, to customer consumption anddisposal of goods. This enables us to accurately determine
the total environmental burden generated by businessactivities and take necessary actions to reduce it.
We already recycle 100% of the waste materials and byproducts generated in the production of beer, and we willcontinue our efforts to reduce CO2 emissions generated byenergy use, effectively use water resources, and collectreusable resources.

Environmental Impact ofAsahi Breweries

INPUT(61,221,000 Nm3)

A-grade heavy oil: *1 859,000 GJ(22,086 kl)

Electric power: 2,582,000 GJ(251,757,000 kWh)

Total:

Recycling Company

Bottles:
526,000 tons
Aluminum cans: 70,000 tons
Steel cans:
1,000 tons
Cartons:
40,000 tons
Bottle tops:
2,000 tons
Labels:1,000 tons

2,819,000 GJ

6,260,000 GJ

Total:

Beer bottles collected from restaurants
and shops are reused.

640,000 tons

Collection of Containers and Packages

GJ (giga joule) = J (joule) × 109

Fuel for Vehicles

Bottles:(Reference)
Aluminum cans:
Steel cans:
Cartons:

907,000 GJ(light oil: 23,749 kl)*The recycle rate of aluminum cans,steel cans, and cartons (cardboard) isbased on nationwide figures.

Service Water
Raw materials
Malt:
Adjuncts:

16,544,000 m

3224,000 tons
179,000 tons

Purchase of Liquefied Carbon Dioxide(rice, corn processed materials, etc.)

Hops:

3,000 tons

Total:

406,000 tons

Purchase:
12,300 tons
Collection by Asahi Breweries: 59,200 tons
Total

98.2% (2004)
81.8% (2003)
87.5% (2003)
105.5% (2003)

71,500 tons

Production

Logistics

Beer and happoshu

For Shareholders and Investors

City gas:

Resources

Sales

For Employees

EnergyConsumption

Total distance oftransportation:
85,774,000 km

Air

Discharged Water

Disposal Materials
and By-products

CO2: 309,000 tons
NOx:
128 tonsSOx:
41 tons
Soot and dust: 4 tons

13,931,000 m3

308,000 tons

Air
CO2:
NOx:
SOx:

For Local Communities

Production volume: 2,613,000 kl
350 ml can conversion:
7.5 billions cans in total

Air

62,000 tons
190 tons
76 tonsCO2:

14,000 tons

Corporate-owned
Asahi Forest *2

Absorption of CO2: 12,000 tons

Recycling*1 A-grade heavy oil

For the Global Environment

OUTPUT
Disposals and By-products
Recycling 100%

The sulfur content of A-grade heavy oil is less than or equal to 2%
and burning this oil generates less sulfur oxide than other gradesof heavy oil.

*2 Corporate-owned Asahi Forest
The Asahi Forest, located in Shobara City, Hiroshima Prefectureand neighboring areas, absorbs 12,000 tons of CO2 every year.

* Scope: All breweries of Asahi Breweries, Ltd.
CSR REPORT 200552

For the Global Environment

Environmental
Management

Basic Environmental Principles
Establishing Basic Environmental Principles
Asahi Breweries’ Guidelines for Corporate Activity, establishedin January 1998, clearly state “Safety and environmental
responsibility.” Based on these guidelines, we established our
Basic Environmental Principles in January 2000. These
principles define the Group’s environmental concepts andpolicies, and set forth action guidelines related toenvironmental conservation for all employees.

Basic Environmental Principles
Basic Philosophy
Beer is made from the bounties of nature, such as
water, barley, and hops. At the Asahi BreweriesGroup, we believe it is our responsibility to enable ourchildren to inherit a healthier planet. To achieve ourgoals of protecting this beautiful planet and the people
who live on it, we believe our actions must
demonstrate our gratitude for the natural bounty the
Earth provides us all.
Guidelines for Action(1) Strive to promote waste reduction and recycling to
reduce the use of natural resources and toconserve energy.
(2) Endeavor to reduce the output and usage ofsubstances that burden the environment, such as
CO2 and CFCs.
(3) Promote systems and practices that conserve
water, the most precious resource for the Asahi
Breweries Group.
(4) Be aware of environmental concerns in productdevelopment, in the development of technologies,
and in procurement.
(5) Contribute to society by actively supporting
environmental protection activities andencouraging employees to participate as well.
(6) In addition to carefully observing all environmental
laws and regulations, each affiliated company willdevelop its own environmental standards.
(7) Outside Japan, be aware of local environmental
concerns and actively work to promote
environmental protection in each country where theGroup operates.
(8) Strive to communicate openly with society byproviding appropriate information on ourenvironmental systems and practices.

Environmental Management
SystemEnvironmental Committee Leads in Enforcing the
PDCA Cycle
The Asahi Breweries Group has organized an Environmental
Committee. The committee established the Medium-termGroup Environmental Management Plan and monitors theplan’s progress and status.
Policies and plans formulated by the Environmental
Committee are approved by the Management Strategy
Meeting and the Management Meeting. The policies andplans are then shared with the headquarters, breweries, andeach affiliated company by the Social & Environmental
Management Department, the operational agent of theEnvironmental Committee, and the Group Environmental
Committee.
Each brewery has an ISO Environmental Management
Committee which promotes environmental activities based on
the Medium-term Environmental Management Plan of the
Asahi Breweries Group, the annual plan, and ISO 14001
Environmental Management Program. As required, a crossorganizational project is launched to respond to newconcerns. Each quarter, the ISO Project Office of the head
office and at each brewery identifies and analyzes theaccomplishments and status of activities. Results are reported
to the Head Office Environmental Committee and to each
brewery’s ISO Environmental Management Committee as thebasis for developing next year’s plan.

Environmental Audit
The Asahi Breweries Group conducts external certification
audits based on ISO 14001 standards. Periodic internal
environmental audits are also conducted by internal audit
teams in each business unit.
Apart from these audits, internal environmental audit teamsof the head office conduct the Head Office Environmental
Audit every other year to confirm that the environmental
activities of each business unit and brewery are proceedingsatisfactorily.

Head Office Environmental Audit Conducted in 2004
Audit Scope
Asahi Breweries(total 11 business units)

Breweries (Ibaraki, Suita, Hakata);
Research and development center; Headquarters office/Regional headquarters (Hokkaido, Tokyo metropolitan area,
Chubu, Kinki, Chugoku, Shikoku, Kyushu)

Each affiliated company(total 7 business units)

Nikka Whisky: factories (Sendai, Kashiwa, Nishinomiya);
Asahi Food & Healthcare: factory (Osaka);
Asahi-Kyowa Liquor Manufacturing: factories (Moji, Tsuchiura);Sainte Neige Wine: headquarters factory

Audit Results
Follow-through requiring
more than improvement
Major follow-throughissues

34 casesIssues related to waste materials (contract documentation,
inadequate management of manifests, etc.):
30 cases
Inadequate management of environmental facilities(drainage treatment, etc.):
3 cases
Others:1 caseMeasures
All these items are addressed and improved within three months, the target period set by
Asahi Breweries.

53 CSR REPORT 2005

For Consumers and Civil Society

Environmental Management System
Asahi BreweriesGroup’s production companies

Head office
For Business Partners

Management Strategy Meeting(Responsible official: Chairman)

Management Meeting(Responsible official: President)

Breweries

Environmental Committee

ISO Environmental Management Committee(Chairman: Board directors in charge of environmental issues)(Chairman: Brewery manager)

Social & Environmental Management Department

ISO Project Office(project office)

ISO Environmental
Management Committee

Group Environmental Committee

For Shareholders and Investors

Internal Audit TeamInternal Audit TeamISO Project Office

Plan

A
Act

Businessheadquarters

Brewery, eachdepartment

Brewery, eachdepartment•Formulate Medium-term Group Environmental Management
Plan (Environmental Committee)•Develop annual plans related to the environment (Social &Environmental Management Department)•ISO 14001 Environmental Management Program (ISO 14001
certified business units)•Plans for enhancing the efforts of each project ororganizational entity (Environmental Committee)•Performance evaluation of annual
activities and incorporation into next
year’s plans (Each business unit)•Improvement or preventive measures ofassignments (Each business unit)

Certification
ISO 14000 Certification and Eco Action 21
The Asahi Breweries Group plans to have every production
site nationwide acquire either ISO 14001 or Eco Action 21
certification* by the end of 2006.
In addition, all sales units of Asahi Breweries introduced
Asahi Way in May 2004. Asahi Way manages theenvironmental protection activities of each site, including
measurable targets and progress, and promotes activities toreduce the environmental burden in accordance with eachactivity.
Asahi Way will be introduced into the sales units of affiliatedcompanies.

Brewery, eachdepartment

D
Do

Manufacturing
company

Manufacturing
company•Medium-term Group Environmental
Management Plan, annual plans related tothe environment, ISO 14001 Environmental
Management Program, environmental
activities related to the plans for enhancing
efforts in each project or organization entity(Head office, breweries, affiliatedcompanies)

For Employees

P

Businessheadquarters•Quarterly analysis of activities (Environmental Committee, ISO
Environmental Management Committee)•Internal ISO environmental audit (Internal audit teams in the head
office and breweries)•External ISO certification bodies (External certification bodies)
Check •Internal environmental audit at the head office (Internal
environmental audit team of the head office)C

For Local Communities

Businessheadquarters

ISO 14001 and Eco Action 21
Certified Business Units•Domestic production sites of the Asahi Breweries Group
21 of 30 business units*Asahi Breweries, Ltd., The Nikka Whisky Distilling Co., Ltd., andAsahi-Kyowa Liquor Manufacturing Co., Ltd. completed in all
breweries.

•Overseas production bases of the Asahi Breweries Group
3 business units

For the Global Environment

Businessheadquarters•Logistics bases of the Asahi Breweries Group
10 business units in 4 companies•Sales bases of the Asahi Breweries Group
2 business units in 2 companies* Eco Action 21 certification:
Ministry of the Environmental established this certification and registry system
in 1996 to provide companies, schools and public institutions with a method
for establishing, managing, evaluating, and reporting the effectiveness ofactivities to protect the environment.

CSR REPORT 2005

54

Compliance with Laws Related to theEnvironment and Number of Accidents

Employee Environmental
Education

Compliance with Laws Related to theEnvironment

Periodic and Ongoing Environmental Education
for All Employees

Operations at all breweries comply with environmental
regulations and laws. In addition, we set up even higher
standards for brewery environmental facilities, such as
drainage treatment and boiler equipment.

Asahi Breweries offers educational programs related toenvironmental policies and goals in the brewery and head
office based on ISO 14001 standards. Since 2003, we haveoffered training in environmental issues solutions. In 2004, we
conducted an Environmental Risk Management Seminar toprevent illegal dumping and held Asahi Way workshops to set
up environmental management systems in our sales sections.

Prevention of Serious Accidents
There were no significant environmental accidents in any
brewery of Asahi Breweries in 2004.

Preventing Environmental
Pollution
Actions to Prevent Environmental Pollution
Asahi Breweries prepares for situations that can impact theenvironment, such as large-scale earthquakes and fires. We
work to improve facilities and conduct drills based on ISO
14001 standards and Asahi Breweries’ own measures to deal
with large-scale earthquakes.

Environmental Risk Management
Seminar

Representative Measures
Breakwaters
We set up breakwaters aroundtanks to prevent the outflow ofpharmaceutical products andharmful matter outside thebreweries in the event ofdamage to chemical tanks by alarge-scale earthquake.

Automatically Detecting
Chemical Substances
A sensor immediately detects
malfunctions, such as theoutflow of chemical substancesor oil into rain run-off drains, andthe automatic chemical
detection system prevents
discharge outside the brewery.

DrillsTo minimize environmental
impact on neighboring areas,
we conduct drills based on ISO
14001 standards on theassumption that chemical
substances and oil may bereleased outside the breweries
in the event of a large-scale
earthquake.

55 CSR REPORT 2005

Training new recruits in cleaning
activities

For Consumers and Civil Society

For the Global Environment

Environmental
Performance

Achieved Goals One Year Ahead of Schedule andFormulated a New Medium-term Plan
The Asahi Breweries Group achieved the goals of its First
Medium-term Environmental Management Plan, launched in
2001, one year ahead of the 2004 target date. Therefore, wehave established and are already proceeding to implement
actions for a Second Medium-term Environmental
Management Plan with goals for the period 2004 to 2006.
Major Points of Second Medium-term Environmental
Management Plan
•We set specific goals through the Asahi Breweries Group•In response to the enforcement of the Kyoto Protocol, we changed
CO2 emissions goals from basic units to the total amount ofemissions.

For Business Partners

Goals and Status of Group Medium-term
Environmental Management Plan

Asahi Breweries Group Medium-term Group Environmental Management Plan and Status
Targets for 2006

Results of 2004

Targets for 2006

Results of 2004

Total CO2 emissions: +9%compared to 1990
[2008 target] Total CO2
emissions: ±0% compared
to 1990

Total CO2 emissions:
434,000 tons (+21%compared to 1990)[Reference] -1.6%
compared to previous year

Reduction of total CO2
emissions at production
sites

All group production
companies

Total CO2 emissions:
262,000 tons (±0%compared to 1990)[2008 Goals] Total CO2
emissions: 235,000 tons(-10% compared to 1990)

Total CO2 emissions:
309,000 tons (+18%compared to 1990)[Reference] Compared toprevious year: -2.5%

Reduction of energy
unit consumption at
production sites

All group production
companies

Basic unit: 2.06 GJ/kl(-36% compared to 1990)

Unit consumption: 2.4 GJ/kl Total amount of energy(-26% compared to 1990) consumption to achieve thegoal above for CO2 total
emissions——

Reduction of service
water unit consumption
at production sites

Major group production
companies

Basic unit: 6.2 m3/kl (-32%compared to 1990)

Unit consumption: 6.3 m3/kl Total amount: 23,230,000(-30% compared to 1990) m3/year (+15% compared
to 1990)

Total amount: 22,150,000
m3/year (+9% compared to1990)

Reach 100% recyclingof waste materials at
production sites

All group production
companies

Achieved in all breweries

Reach 100% recycling
rate in the offices

All sales offices of Asahi
Breweries

Reach 100% recycling rate
in all sales units

Increase the number ofsites with production
departments certified
for environmental
management

All group production
companies

Expand the introductionof the environmental
management system
into the sales
departments

All group production
companies

Achieve 100% recycling
rate of waste materials in allgroup production sites by
2006

Reached 100% recycling ratein Sainte Neige Wine
[Sites yet to achieve goal]
Asahi Food & Healthcare(Osaka, Ibaraki), Asahi-Kyowa
Liquor Manufacturing (Moji),
Nippon Freeze Drying,
Satsumatsukasa Shuzo (5 sites)

Roll out starting in 2005
[Reference] Achieved in
the head office (January)
and in Hokkaido branch(March) in 2005————

Acquire ISO 14001
certification in all breweries

Acquired certification at the
Kanagawa Brewery(achieved certification in all
nine breweries)

Acquire ISO 14001 or Eco
Action 21 certification at all
production sites

Acquired ISO 14001
certification at the Osaka
Brewery of Asahi Food &Healthcare[Business units yet toachieve goal] Asahi Soft
Drinks (Fujisan Factory),
Asahi Food & Healthcare(Tochigi, Ibaraki), Asahi Beer
Winery, Asahi Beer Malt
(Yasu, Koganei), Nippon
Freeze Drying,
Satsumatsukasa Shuzo (9sites)

Maintain and improve Asahi
Way

Introduced Asahi Way in all
sales units in 2004

Introduce Asahi Way, Asahi Roll out Asahi Way starting in
Breweries’ unique
2005 based on operation
environmental management expertise in Asahi Breweriessystem, in all sales offices

For Shareholders and Investors

Asahi Breweries Group(including Asahi Breweries, Ltd.)

Asahi Breweries, Ltd.

For Employees

Scope

For Local Communities

Subissue

For the Global Environment

Strengthening and extending the environmental
management system

Reduction in amount of waste
produced and promotion of recycling

Promotion ofenergy-saving at
production sites

Reduction ofgreenhousegas emissions

Key
issue

Major Group production companies:
Asahi Breweries, Ltd., Asahi Soft Drinks Co., Ltd., The Nikka Whisky Distilling Co., Ltd., Asahi Food & Healthcare, Ltd., Asahi Beer Malt, Ltd.,
Asahi Beer Winery, Ltd., Asahi-Kyowa Liquor Manufacturing Co., Ltd.
All Group production companies:
Asahi Breweries, Ltd., Asahi Soft Drinks Co., Ltd., The Nikka Whisky Distilling Co., Ltd., Asahi Food & Healthcare Co., Ltd., Asahi Beer Malt, Ltd.,
Asahi Beer Winery, Ltd., Asahi-Kyowa Liquor Manufacturing Co., Ltd., Sainte Neige Wine Co., Ltd., Satsumatsukasa Shuzo Co., Ltd.,
Nippon Freeze Drying Co., Ltd.

CSR REPORT 2005

56

For the Global Environment

Prevention of Global
Warming
Energy Conservation andReduction of CO2 Emissions
Energy Conservation Facilities and Fuel
Conversion
The goal of Asahi Breweries is to reduce total CO2 emissions
by 10% compared to 1990 levels by 2008.
Our CO2 emissions are generated by electricity usage andboiler firing or during the brewing, bottling, canning, andbarreling processes. To achieve our 10% reduction goal, weplace the highest priority on reducing CO2 emission, and are
therefore introducing co-generation systems, energyconserving facilities, fuel conservation, and CO2 recycling
systems*.
In 2004, we introduced
co-generation systems in
the Kanagawa Brewery.
In the Nishinomiya
Brewery, we introduced
the same co-generation
systems along with ananaerobic water
processing system which
Co-generation systems
collects and reuses
methane gas as anenergy source for processing drainage. In addition, we
increased our storage tank capacity for collecting CO2
generated in the brewing process.
As a result, total energy consumption decreased from
6441TJ in 2003 to 6260TJ in 2004, and the energy
consumption unit decreased from 2.46 GJ/kl in 2003 to 2.40
GJ/kl. Total CO2 emissions decreased from 317,000 tons in2003 to 309,000 tons in 2004, and the CO2 emission unit
decreased from 121 kg/kl in 2003 to 118 kg/kl in 2004.
In 2005, we will introduce co-generation systems in the
Hakata Brewery, and all breweries will convert to natural gas
fuel systems by 2008.
* CO2 recycling systems
In all nine breweries of Asahi Breweries CO2 produced in the brewing process
is collected and stored in tanks. CO2 is reused in the packaging and otherprocesses.

Reduction of CO2 Emissions in Logistics
In 2004, 17 logistics sites nationwide were consolidated into 15. The
total travel distance for deliveries significantly decreased from98,920,000 km in 2003 to 85,774,000 km in 2004. As a result, total
CO2 emissions in 2004 were 62,000 tons, a 14% reduction from2003.

Reduced Energy Usage in Drainage Treatment
Cleaning up brewery drainage requires significant energy since it
contains organic components such as sugar. Therefore, Asahi
Breweries introduced into all its breweries an anaerobic water
processing system that uses anaerobic methane bacteria to clean
drainage. The system also helps control consumption energy in theprocess of drainage treatment.

CO2 Emissions(All breweries of Asahi Breweries)(1,000 ton)(kg/kl)

400

365

200

366

161

337

317

309

300
261

144
131

200

126

150

Basic
118 unit

121

100

100

Total
CO2
emissions

50

0

0

1990

2000

2001

2002

2003

2004

Energy Consumption
TJ=J × 1012

(All breweries of Asahi Breweries)(TJ)(GJ/kl)

8,000

7,638

4

7,608
6,829

3.20

6,441

6,260

6,000

3
5,193

3.01
2.73

4,000

2.55

Basic
2.40 unit

2.46

2

Total
energy1
consumption

2,000

0

0

1990

2000

2001

2002

2003

2004

Transportation Distance and CO2 Emissions(Scope: transportation of beer and happoshu)(1,000 km)

746490,000(1,000 ton)

79

120,000
110,689

103,562

91,43680

72
62
98,92085,774CO2
60
emissions40

60,000Total
distance
30,000

20

0

0

2000

57 CSR REPORT 2005

2001

2002

2003

2004

1

For Consumers and Civil Society

TopicWind-powered Generation

For Business Partners

Since September 2003, Asahi Breweries has invested in Green Power Aso (Nishihara
Village, Kumamoto Prefecture), which was established by Electric Power Development
Co., Ltd., to support wind-powered generation, a source of energy that is expected tocontribute to the prevention of global warming. Green Power Aso began constructionof Aso Nishihara Wind Farm, a wind-powered generation station, in February 2004.
Operation of the station began in February 2005.
In May 2002, the Kanagawa Brewery of Asahi Breweries, became the first brewery
in the industry to commission wind-powered generation under the Green Power
Certification System*. The brewery commissioned 2,662,000 kWh in 2004.

* Green Power Certification System
Japan Natural Energy Company Ltd. manages this system to encourage the use ofnatural energy. Companies and local governments can purchase electricity produced bywind power and biomass, on a subcontracted basis.

For Shareholders and Investors

Wind-powered generation facilities
Japan Natural Energy Company Ltd. Web site

http://www.natural-e.co.jp/english/index.html

Topic

2

Corporate-owned Asahi Forest, 463 Times the Size of the Tokyo DomeFor Local Communities

For Employees

Asahi Forest, a corporate-owned forest, which reaches out to Shobara City, Hiroshima Prefecture and neighboring areas, is 2,165 ha, 463 times
the size of the Tokyo Dome and absorbs 12,000 tons CO2 annually. Environmental conservation is a top priority in the management of Asahi
Forest, which is certified as a water conservation forest and Prefectural Nature Park and recognized as a protected forest reserve. In 2001, Asahi
Forest received the Forestry Stewardship Certification from the Forest Stewardship Council (FSC), an international forest certification institution.
This certification is granted to forests which are maintained under responsible forestry management.
In general, when trees are planted on a mountainside, 3,000 seedlings are planted per hectare. However, if the forest is allowed to grow at thisdensity, the trees will become thin and crowded. With little or no sunlight reaching the ground, root development is stunted. Therefore, we actively
thin the Asahi Forest and develop our sales promotion material from the thinned wood (p. 62).

For the Global Environment

Asahi Forest

CSR REPORT 2005

58

For the Global Environment

Conserving Water
Resources
Reusing Water andPurifying Wastewater

Water Consumption(All breweries of Asahi Breweries)(1,000 m3)(m3/kl)25,00010

Water Resources—a Major Raw Material for Beer
Asahi Breweries is committed to conserving the quality ofwater, one of the important ingredients of beer, from thefollowing three aspects: sustainable water resource
management, efficient use of water resources, and quality
control of water discharge.

20,0009.1

20,437 20,613

8

19,1688.0

7.4

15,000 14,781

17,018 16,544
7.2
6.5

6.3

Basic
unit

6

4
Water
consumption
2

10,0005,000

Sustainable Water Resource Management
When using water as an ingredient of beer, Asahi Breweries inspects
water safety and suitability for beer brewing based on proprietaryinspection items, such as the presence and concentration of residual
chlorine in the water, in addition to 50 inspection items provided in thewater quality criteria stipulated by the Waterworks Law.

Efficient Use of Water Resources
Asahi Breweries is committed to reducing water consumption used
for cleaning and sterilizing tanks and pipes in plants. The Second
Medium-term Environmental Management Plan calls for reducing unit
consumption of water by 32% from 1990 levels by fiscal 2006.
Examples of such efforts at each brewery include shorter cleaning
time and the secondary use of water for final rinsing process. These
efforts have contributed to annual decreases in water consumption,
including a reduction from 17,018,000 m3 to 16,544,000 m3, year-onyear in 2004, with the basic unit falling from 6.5m3/kl in 2003 to
6.3m3/kl.

Quality Control of Water Discharges
Asahi Breweries discharges wastewater generated during the
production process of beer and happoshu into sewer systems andrivers after purification using such equipment as an anaerobic water
processing system within the brewery.
Several breweries are able to purify wastewater to a quality
approaching that of tap water by using ozone and activated charcoal
treatment in addition to conventional methods.

0

0

1990

2000

2001

2003

2004

Wastewater Discharged(All breweries of Asahi Breweries)(1,000 m3)

20,00016,000(m3/kl)17,892

8
17,82016,491

7.0
6.4

14,405
6.2

12,0005.5

613,931
5.3

Basic
unit
4
Wastewater
discharged

8,000

2

4,000

0

0

2000

2001

2002

Anaerobic water processing system

Bottle washer using recycled water

59 CSR REPORT 2005

2002

2003

2004

1

For Consumers and Civil Society

Topic

Asahi Breweries Mizu no Wakusei (water planet) Environmental Fund

For Business Partners

The Asahi Breweries Group established Mizu no Wakusei, an environmental fund, inMarch 2004 under Living in Harmony with Local Communities, one of the Group’s
Six Priority Initiatives.
With contributions from wide-ranging sources, including customers,
shareholders, employees, and Group companies, the fund supports organizations
that promote the conservation of water resources and the establishment of green
areas, efforts that are integral to the Group’s business activities. As of 2004, the fundhas contributed approximately 17 million yen to the Green Fund operated by the
National Land Afforestation Promotion Organization.

Topic

2

For Shareholders and Investors

Presenting the contributors list to the National Land
Afforestation Promotion Organization

The Conservation of Local Woodland and Water Resources around Each Facility

For Employees

To exercise its stewardship of water as a gift of nature, Asahi Breweries has actively
worked to conserve water around all its facilities since 2004. In June 2004, theShikoku Brewery inaugurated a joint water resource conservation project with the
TOYO Valley Forestry Activation Center, which was established by cities in eastern
Ehime Prefecture, and Ishizuchi Water Resources Wood Club, a volunteer
organization. With the goal of establishing activities around every breweries by 2006,
we plan to develop projects at the Ibaraki and Suita breweries in 2005, in addition to
the work already started at the Nagoya Brewery.

Water resource conservation at the Nagoya Brewery

3

Brewery Eco Tours
For Local Communities

Topic

For the Global Environment

Asahi Breweries began conducting Brewery Eco Tours in 2004 to highlight theenvironmental conservation activities of its breweries and to teach participants about
environmental conservation.
Brewery Eco Tours were held at three breweries in 2004—the Nagoya Brewery,
the Kanagawa Brewery, and the Shikoku Brewery. Children who participated in the
Nagoya Brewery Eco Tour contributed to the Ecology News at the brewery’s Eco
Press Club by summarizing what they had learned and discovered about
environmental conservation. Participants in the Kanagawa Brewery’s Eco
Exploration, featuring a local forestry instructor, directly experienced the value andwonder of nature by observing the wild grasses and small animals living in the areasurrounding the brewery.

The Nagoya Brewery Eco TourCSR REPORT 200560

For the Global Environment

Waste Reduction

Basic Unit of Wastes and By-products

Reusing Resources(All breweries of Asahi Breweries)(1,000 tons)

400

Recycling 100% of Wastes and By-products
Generated within Breweries
Approximately 300 thousand tons of wastes and byproducts* are generated each year by the manufacturing
plants of Asahi Breweries, and since 1998, 100% of thesewastes and by-products have been recycled instead of being
taken to landfills.
Malt-feed, the malt hulls produced during the preparation
process, represents 83% of generated wastes. Some of thismalt-feed is recycled as cattle feed. The rest is treatedthrough seasoning, compression molding, burning, andtransformation into ceramics for use in Orchid Base, abedding soil for orchidaceous plants, and as a culture
medium for Sangoju, a very sweet tomato.
Sludge and similar by-products of the wastewater
processing process account for 8% of wastes and areprimarily used for organic fertilizer. Glass cullet, including
bottles, represents 6% of wastes and is used as raw material
for recycled bottles, while surplus brewing yeast generated
during fermentation, representing 1% of total waste, is used
for quasi-drugs such as Asahi Food & Healthcare’s EBIOS,
food additives such as yeast extract, and raw material for
brewer’s yeast supplements, including Super Brewer’s Yeast.
The entire Asahi Breweries Group plans to achieve 100%
recycling of all waste at all the production sites by 2006.

(kg/kl)

391

370

200

363
323

308

300

150

154
136

133

200

Basic unit

124

118

100

50
Wastesandby-products
0

100

0

2000

2001

2002

2003

2004

Breakdown of Wastes and By-products (2004)
Others 2%(cardboard, waste palettes, waste plastics, etc.)

Surplus brewing yeast 1%
Glass cullet 6%
Sludge, screened lees 8%

Total
100%

Malt-feed 83%* By-products
In Asahi Breweries, materials produced at the same time as main products
like beer are called by-products, instead of waste. These include malt-feed
and surplus yeast. By-products can be reused in a completely different form
as ingredients for quasi-drugs and food additives.

Recycling rate of returnable bottles*

Reuse and Recyclingof Containers
Reusing and Recycling Beer Bottles and Cans
Nearly 100% of beer bottles are returned to breweries forrecycling after the content has been consumed. The recycle
ratio of aluminum cans is extremely high given the public
promotion of recycling. Consequently, these containers are
uniquely contributing to the formation of a recycling society.

(%)

105

100

102.8

97.9

98.3

2000

2001

99.1

98.2

95
0

2002

2003

2004

* Collection Ratio of Returnable Bottles for Asahi Breweries= Number of Bottles Collected ÷ Number of Bottles Shipped

Reference: Domestic Recycling Rate of Aluminum Cans*
2000

2001

2002

2003

80.6%

82.8%

83.1%

81.8%

* Recycling Rate of Aluminum Cans

= Weight of Cans Collected ÷ Weight of Cans Used
Source: Japan Aluminum Can Recycling Association

61 CSR REPORT 2005

For Consumers and Civil Society

Reusing and Recycling of Beer Bottles and Aluminum Cans

Separatedcollection

Masscollection

For Business Partners

Aluminum cans

Curbsidecollection

Customer
Beer bottle

Wholesalers, retailers,bars and restaurants

Wholesalers, retailers,bars and restaurants

Asahi Breweries’ breweries

Topic

Remelted aluminum
ingot manufacturer

For Shareholders and Investors

Retail collection(Beer bottles returned to the retailer arethen sent back to the breweries)

1

Aluminum can manufacturers

Aluminum rolling mills

MATICS Consortium

For Employees

Asahi Breweries has participated in the MATICS (Material Tracing IC System)
Consortium sponsored by the Japan Research Institute, Ltd. since 2004. The
purpose of this consortium is to develop a new mechanism for resource recycling,including the use of IC tags to trace and manage plant wastes throughout their
entire life cycle, until they are brought back to plants for disposal.
Asahi Breweries cooperates in such activities as test marketing as well as thedrafting of proposals for establishing systems as a user company. Our Ibaraki
Brewery has been operating a pilot disposal system for waste plastics incooperation with a waste disposal company since April 2005.

Compressed waste plastic blocks

Topic

2

For Local Communities

Waste plastics are compressed so that IC tags can be
attached.

Sales Promotion Materials Made Out of Thinned Timber

For the Global Environment

In April 2005, Asahi Breweries launched nationwide distribution of sales promotional
materials, made from timber thinned from Asahi Forest, for bars and restaurants(p. 58). The promotional product is a Japanese-style wooden tag for Keg Fresh
Beer of Asahi Super Dry, one of our main beers. In the Hiroshima area, the locationof Asahi Forest, a sales promotion campaign is under way using two additional
types of promotional materials, including a wooden table stand for Asahi Premium
Draft Beer Jukusen. Asahi Breweries plans to continue developing sales promotional
materials made from environmentally sound materials.

Sales promotion materials
made from thinned timber

CSR REPORT 200562

For the Global Environment

Other Activities

Environmental Risk Management

Environmentally Sound Containers
and Sales Promotion Materials

Reducing Environmental Risks

Eco Point Improvement

The main raw materials for beer and other liquor produced by
the Asahi Breweries Group are agricultural products, such as
malt and hops; no toxic chemicals are used. Under the Group
Environmental Guidelines, the company stipulates selfregulation that exceeds legally mandated levels to reduce
environmental risk factors, including soil contamination andtoxic chemicals.

In July 2000, the company set up Environmental Guidelines
for Reducing the Environmental Burden of Products andSales-Promotion Products, which specify the materials,
design, and usage of containers, packaging, and sales
promotion products. To effectively implement theseguidelines, the company also established Eco Point
Calculation Standards* (environmental consideration level) in
2001. Excluding a few products, for which raw materials
cannot be easily changed due to quality issues or the fact
they are produced abroad, the ratio of items which havereached the Eco Point standards is now 94.1%, an increaseof about 3.9 points from 2003. The improved score is due tothe display of disposal instructions on paper and plastic cups.

Environmental Activities
at the Head Office
Achieving 100% Recycling at the Head Office
As a major component of the Group’s environmental activities,
Asahi Breweries’ head office acquired ISO 14001 certification,
the international environment management system standard,in August 2001. Asahi is reducing the consumption ofelectricity and office paper at offices and promoting therecycling of waste.
As a result, the recycling rate by offices matched that of thebreweries in achieving 100% in January 2005, compared to60.2% in 2004.

63 CSR REPORT 2005

* Eco Point Calculation Standards
All containers, packaging, and sales-promotion products are evaluated on ascale of 1 to 3 for each of the following categories: (1) disposability (safety), (2)disposability (ease of disassembly), (3) disposability (ease of reusing materials),(4) prevention of resource exhaustion (use of renewable materials), (5)reduction of the physical size at disposal, (6) longevity and robustness, (7)display and disclosure of information.
For example, in the category of disposability (ease of disassembly),
products that cannot be easily disassembled are rated 1 point; products thatcan be easily disassembled, 2 points; and products that consist of one
material with no need for disassembly, 3 points. Asahi Breweries designates
those rated over 60% (at least 13 points out of a possible 21) as
environmentally-sound containers or sales promotional products.

For Consumers and Civil Society

For the Global Environment

Asahi Breweries’ Integrated
Environmental Burden Index, AGE
Changes in the AGE Index
4.35

4.30

3.93

Recorded a Low of 3.43, a 0.28 Point
Improvement

3.71

Impacton theentire
earth

3.43
2.76

2.73

2.76

2.57

2.58 Impact
on thewatersystem

2.00

1.00

0.99

1.05

0.59

0

2000

0.73

0.54

2001

0.53

2002

Impact0.42 on the
0.43 atmosphere

0.66
0.47

2003

2004

For Shareholders and Investors

The company introduced Asahi Breweries’ Integrated
Environmental Burden Index, AGE (Asahi’s Guideline for
Ecology) in 2000 to objectively quantify and determine theenvironmental burden of corporate activities.
AGE quantifies the environmental burden of a productthroughout its lifecycle as accurately as possible, from the
supply of raw materials, to the production and transportationof the product, up to the consumption, disposal and recyclingof the empty container by customers.
In 2004 AGE recorded a low of 3.43, a 0.28 point
improvement from 2003. Impact on the water systemsignificantly improved as a result of brewery water
conservation efforts. On the other hand, improvements inenergy saving and distribution efficiency were offset by a lower
container recycling rate. Thus, impact on the earth was 2.58
while impact on the atmosphere was 0.43. Both remained
nearly flat, at the same performance level as last year.

3.00

AGE

4.00

For Business Partners

AGE in 2004

5.00

The Derivation of AGE

Asahi Breweries’ breweries

For Employees

Weightingset by Asahi
Breweries

Global warming

5

Ozone-layer depletion1(global impact)

Acidification

1

Impact on the water system

Eutrophication2(local impact due tosubstances released into
the hydrosphere)

Generation of photochemical oxidants

1

Impact on the atmosphere

Adverse effects on human health1(local impact due to substances
released into the atmosphere)

Classification,
characterization

CO2

Global warming

HFCs

Ozone-layer depletion

SOx

Acidification

NOx

Eutrophication⁝

Generation of photochemical oxidants

Heavy
metalsAdverse effects on human healthImpact on the entire earth

AGE

WeightingIntegration

Integrated Index(AGE)

For Local Communities

Calculation of theamount ofreleased substances

Environmental evaluation factor

For the Global Environment

Data Input

Weighting and Integration

Asahi Breweries’
original weighting

Various environmental burdens, such as CO2
emissions and water consumption, are evaluated inbasic units per 1 kl of beer production. These figures
are classified into environmental categories—impact
on the entire earth, impact on the water system, andimpact on the atmosphere—and applied to weighted
multiples (1 to 5) which were originally set by Asahi toderive the AGE index for the year.
CO2 and water-related issues such as global
warming and eutrophication are heavily weighted ineach category, given Asahi’s basic environmental
policies, operational characteristics, and criticalenvironmental conservation issues.

CSR REPORT 2005

64

Measures Taken in Response to Third-Party Opinions on
Asahi Breweries Group CSR Report 2004

Reduction ofenvironmental burden
from production,
logistics, and otherbusiness activities

Social responsibility
for employment andhuman rights

Communitycommitments,
cultural andenvironmental
conservation
activities

Promotion ofcommunication

65 CSR REPORT 2005

Third-party Opinion on Asahi
Breweries Group CSR Report 2004

Asahi Breweries’ Response

The entire Group and others in the supply chain
should improve its monitoring system to achieve
more thorough recycling of waste materials. There
should also be a deeper commitment to actively
promoting products made from recycled materials.

Asahi Breweries adheres to strict waste separation
practices, and by working together with recycling partners tocreate new products from waste, the company has achieved
100% recycling of waste. Asahi’s production facilities aremaking efforts to achieve 100% recycling by 2006.

Asahi Breweries’ commitment in the creation of its
own Eco Point system as an index of the degree towhich packaging materials are environmentallyfriendly is commendable. However, setting theapproval standard at 75% or even 80% rather than
60% would encourage the company to aim higher.
By disclosing information regarding how different
materials are evaluated, the company should
encourage a bottom-up approach to thiscommitment starting with employees at theworksites.

With the improvement in Eco Points for paper and plastic
cups, signboards remain as the only items which do notmeet the Eco Point approval standard. Signboards are now
being designed to consist of the same resin for easierrecycling; new signboards will be deployed throughout
Japan in 2005.

Similarly, for the AGE index, in addition to disclosing
the method by which this figure is calculated, you
should explain the rationale behind this calculationand thereby encourage a bottom-up commitment tothis target from employees at the worksites.

The underlying data previously disclosed only in the data
book is now provided on the Web site allowing shareholders
to access diverse information. Asahi will provide as muchdetailed information as possible.

In addition to procurement of high quality raw
materials and expansion of your contractual growing
program, you should encourage producers to reduce
chemicals while more actively contributing to landconservation.

Some raw materials, including domestic barley, hops, andcorn produced in the U.S., are grown on a contract basis.
However, the contractual growing program, which
designates production sites, is at risk of being directly
exposed to environmental fluctuations. Asahi is focusing on
initiatives to ensure both traceability and reduced
agrochemical residues in raw material.

You should create systems and working
environments that inspire diverse employees in every
Group company.

Asahi Breweries maintains basic personnel policies thatspecify employment security, training, evaluation, andtreatment for employees and implements personnel reform
under these policies. For instance, in order to appoint theright person to the right position, the in-house staff
recruitment system recruits and selects employees from all
eligible employees in Group companies.

In addition to promoting the participation of
employees in social activities, your business units
throughout the nation should be more active intackling environmental issues around theirproduction facilities and offices.

In June 2004, conservation work was carried out in theforests of Mt. Ishizuchi, which provide water for Shikoku
Brewery. The company plans to promote activities that
contribute to the conservation of water resources at all our
breweries by 2006.

In addition, a list of important issues could be drawn
up by the Asahi One Beer Club and Asahi Eco
Mileage groups to encourage the involvement of
more employees.

The Asahi One Beer Club and Eco Mileage System were set
up in April 2002 to support each employee’s own volunteer
activities. The One Beer Club donated money to the Sumatra
earthquakes, the tsunami disaster, and the Niigata
earthquake and supported facilities and activities selected by
the members themselves.

You should make clear your medium-term objectives
in all areas as well as results, providing everythingfrom the highly specialized information required byfinancial institutions, researchers, and environmental
NGOs, to the materials needed for children’s
environmental education.
This would entail expanding the information on
your Web site relating to environmental and social
issues to meet the demands of a diverse public andincreasing the frequency of communication events atall business units.

The Web site was set up to report detailed CSR data beyond
the information released in the printed report.

Finally, I would like to ask that, since the mainfunction of this CSR Report is to report results fromthe previous year and plans for the coming year, it
should be published quickly at the end of thefinancial year in conjunction with the annual financial
data and with corresponding targets.

Asahi will continue to facilitate timely disclosure on the Web
site.

Third-Party Opinion on Asahi Breweries Group CSR Report 2005
and other living things that cannot speakout on their own behalf. Consider listening
to these “voices” as well as customer
feedback so that 20 or even 100 years
from now, the Group’s CSR actions will
be highly regarded for the solid principles
and values it has practiced.

Junko Edahiro
Co-Chief Executive ofJapan for Sustainability

This high-level report is a solid improvement
over last year’s report, which had set a new
direction. I noted a boldly creative
communication approach. My comments
are from the perspectives of (1) CSR, (2)communication, (3) improvements I would
like to see in the future, and (4) systems
thinking, so that Asahi Breweries is able tomore effectively address these issues anddemonstrate how a company genuinely
fulfills its social responsibilities.
(1) CSR
Asahi Breweries applies a unique definition
to CSR, sets clear priorities, andimplements CSR activities. This is a good
example of active CSR, which is far
different than passive CSR efforts that
simply imitate what others are doing. In thecurrent CSR boom in Japan, many
companies tend to emphasize complianceand risk management. Asahi Breweries,
however, adopts a very innovative
definition, CSR = CS (Customer
Satisfaction) + R (Relations). The reportreflects this definition by describing how thecompany works on CS (Customer
Satisfaction) by using R (Relations).
I especially appreciate that Asahi
Breweries recognizes its social
responsibilities as a brewer and that thecompany promotes moderate &responsible drinking in cooperation with
NGOs. What stakeholders want most isaction and results. I expect Asahi Breweries
to more clearly convey the process by
explaining the objectives, actions, selfevaluation, and improvement in the next
actions, for each priority task.
As a next step, I recommend considering
the customer satisfaction of stakeholders
with whom relations cannot realistically beestablished, for example future generations(2) Communication
I found Asahi Breweries’ communication
is welcomed and cultivates a sense oftrust because of its bold and frankapproach, which is unique for a Japanesecompany. Especially noteworthy were theimprovements made by employees at a
production site after discovering that
simply following the rules did not in itself
guarantee quality, acknowledgement ofresponsibility for a violation of the law
concerning product misrepresentationand subsequent changes in corporate
operations, and full disclosure ofcompensation paid to directors.
Communication should be interactive.
I expect Asahi Breweries to continue tocommunicate with stakeholders,
including consumers, about Asahi’sbusiness direction based on corporate
principles, as well as the relative
effectiveness of its CSR.
Explanations about efforts to addressenvironmental issues are clear andexcellent. I believe the goal of reducing
total CO2 emissions by 10% from 1990
levels by 2008 will lead the way forgovernment and other companies.
Redefining the goal of reducing CO2
emissions from basic units to total volume
is a major step. I hope Asahi Breweries
will more clearly express the significant
nature of the company’s commitment asa model for other companies to follow.
I also recommend sharing the real story
in greater depth, such as the difficulties
and challenges associated with current
efforts, with an overview of the road map
and progress toward achieving a 10%
reduction, as well as issues and specificplans for achieving the goal. People are
more likely to be motivated to take action
themselves when they understand theprocess and not just the results.
I encourage taking a communication
approach that inspires readers beyond
the mere reporting of results.
(3) Improvements I would like to seein the future<Water>It goes without saying that water isimportant for a brewing and beveragecompany. I applaud the efforts to steadily
reduce the use of water and conserve water
resources. I suggest considering the
adoption of the 5-6 m3/kl benchmark
announced by the UN Environmental
Programme.
<Employees>
The CSR report did not provide any
information on the employment of women or
the promotion of women into management
positions. The report only discusses
considerations for maternity leave, childcare,and nursing care. I want to know clarify
whether employees actually use the system
as well as how the company identifies issues
and sets directions and policies.
(4) Systems thinking
Systems thinking is required to tackle
problems and situations that are inter-relatedwith other factors and to seek genuine
solutions so that such problems do notrecur or affect other areas.
•It is necessary to capture the “big picture”
by recognizing inter-dependencies beyond
the separate, individual issues. I would
expect Asahi Breweries to calculate thebalance and cost-benefit performance of
CSR activities and to report the relationshipbetween business operations and CSR
activities. I would like to see the company
integrate CSR activities with business more
tightly.
•Problems are not bound by time and place.
Please consider future generations andother living things, and extend activities
beyond the Group, the supply chain, andoverseas stakeholders to the world. Clearly
demonstrate company attitudes toward
water issues as global concerns, including
virtual water (the indirect consumption ofwater by agriculture and manufacturing
processes).
•Strengthen the reporting of positive
feedback, including successful CS and R
cycles, and networking with citizens andNGOs in order to produce changes withfavorable effects. The multiplier effectamong different areas is also important.
When employees become more involved incontributing to communities andenvironmental activities, theirconsciousness and morale as well as
corporate culture also improve.
This report does a good job ofcommunicating the openness of thecompany. I have high hopes that Asahi
Breweries will take on even greater
challenges as a trustworthy leader in theindustry.

Editor’s Note
The Asahi Breweries Group CSR Report 2004 published last year
highlighted Asahi Breweries’ CSR efforts beyond environmental
activities, in contrast to the previously published Environmental
Communication Report. In the course of compiling the CSR Report
2004, editors focused on determining the extent of coverage for thereport.
For CSR Report 2005, editors were also concerned about themost effective way to present the status of the Six Priority Initiatives
covered in CSR Report 2004 and our corporate response.
How well does this report convey our efforts to fulfill our corporatesocial responsibilities? We welcome your comments and feedback,since we genuinely intend for this report to provide a means forcommunicating with every shareholder.
Katsutoshi Konuma, Social & Environmental
Management Department
Yumi Horie, Public Relations Department
Kaoru Okuni, Public Relations Department
Jun Yoshida, Quality Assurance Department
Akira Ogushi, Quality Assurance Department,
Customer Relations Office
Asahi Breweries, Ltd.

CSR REPORT 2005

66

CSR Committee
1-23-1 Azumabashi, Sumida-ku,
Tokyo 130-8602, Japan
Tel.: +81-3-5608-5195
Fax: +81-3-5608-5201
E-mail: csrpost@asahibeer.co.jp
URL: http://www.asahibeer.co.jp/english
Published: September 2005

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