Takara Group Sustainability Policy

Basic Policy

Based on our corporate philosophy, which is “Contributing to the creation of a vital society and a healthy
lifestyle through our fermentation technology and biotechnology in a way that achieves harmony withnature,” the Takara Group has benefited society by unlocking new potential in the culinary, lifestyle, and life
science fields through our fermentation technologies for traditional Japanese sake and our cutting-edge
innovation in biotechnologies and by continuing to create new value.
The preservation of a rich natural environment is a major premise for the business continuity of the Takara
Group, which engages in business activities on the basis of the bounty of diverse natural resources such as
grains, water, and microorganisms. In addition, in handling business related to food and medicine, theTakara Group’s most important theme is to deliver safe and reliable goods, products, and services. At thesame time, we must also address various social issues, including those related to alcohol.
The social environment surrounding the Group has undergone rapid change, and with the need for a global
response to such diverse issues as climate change, biodiversity conservation, resource conservation, andrespect for human rights, corporate entities face an increasing responsibility to create a sustainable society.
With our vision, “Smiles in Life —Smiles are the Treasures of our Lifetimes—,” the Group has made adeclaration that it will continue taking on the challenge of filling the lifestyles, lives and lifetimes of people
around the world with smiles. And furthermore, we have formulated the Takara Group Sustainability Policy
in recognition that we must take greater initiatives to resolve various social issues if we are to continue toachieve the creation of social value through business activities into the future.
The Takara Group Sustainability Policy takes up ten important issues (materiality), including “safety andreliability,” from among the social issues surrounding the Group, and lays out initiative policies for each one,taking into account the expectations of stakeholders and the impact on the Group’s business.
Going forward, we will further proceed with initiatives based on these policies and will also work on theestablishment of long-term goals.
The Takara Group aims to be a corporate group that is trusted by its stakeholders, and will contribute to
the realization of a sustainable society by continuing to create social value through our business activities.

Materiality Matrix
High
Safety andreliability

Environment

Expectations from stakeholders

Wellness
Human

Human rights

resources
Responsible
Alcohol
producer

Procurement

Well-balanced
diet
Community

Medium

Impact on the Takara Group’s businessGovernanceHighPolicies and Ideas for Each Materiality and Initiative Themes and Specific Measures
Safety and reliability
As a company involved in food and medicine, the Takara Group believes that it is important that customers find us
reliable. In order to continue to be a corporate group trusted by customers into the future, we have established, and areworking on, the Takara Group Quality Policy

The Takara Group Quality Policy

Based on our corporate philosophy, which is “Contributing to the creation of a vital society and a healthy lifestyle throughour fermentation technology and biotechnology in a way that achieves harmony with nature,” we will bring safe and reliable
products and services to customers throughout the world.
1. We will listen carefully to our customers and pursue quality that satisfies them.
2. We will work together as a group on quality assurance activities throughout the entire process until products are delivered
to customers.
3. We will comply with the relevant laws, regulations and voluntary standards.
4. We will live up to the trust of our customers by making efforts to provide them with appropriate information that is easy
to understand.
Initiative themesSpecific measures
Maintain safety management system (FSSC22000 at six plants in Japan)(1) Ensuring safeand reliable quality
at Takara Shuzo

Create safe products at Takara Shuzo•Examine compliance with laws, regulations and voluntary standards atthe design stage•Stable procurement of raw materials whose safety has been confirmed•Maintain manufacturing lines that ensure safe and reliable quality
Pursue customer satisfaction (ISO 10002)(2) Ensuring safeand reliable quality
at Takara Bio
Group

Maintain quality management system (ISO 9001, etc.) at Takara Bio
Group
Comply with and maintain various quality, manufacturing, and safety
standards, including GMP/GCTP (*), and third-party certification systems
Appropriately disclose product information(3) Ensuring safeand reliable quality
at Takara Shuzo
International Group

Initiatives to establish a global quality assurance system•Understand and comply with information on overseas food safety
regulations•Promote acquisition of food safety certifications at major overseas Group
companies※GMP:Good Manufacturing Practice、 GCTP:Good Gene, Cellular, and Tissue-based Products Manufacturing Practice

Related SDGs

Policies and Ideas for Each Materiality and Initiative Themes and Specific Measures
Human resources
The Takara Group Human Resources Policy
In the Takara Group, we take the perspective that personnel are crucial business assets and view them as valuable humanresources.
Because we believe that a company is an organization comprising all of its individual employees and that the collective powerof those human resources is the source of a company’s sustainable growth and development, we also believe thatmaximizing the potential of individuals and organizations by investing in our human resources is indispensable for further
increasing corporate value and achieving Group growth.
Along with establishing a workplace offering both rewarding work and job satisfaction as well as a corporate culture that
nourishes people, we are successfully fostering human resources who can be responsible for the next generation of the Groupand take charge of global business growth as well as promoting the active involvement of diverse human resources.
Initiative themesSpecific measures
Implement measures to foster human resources who will
be responsible for the next generation(1) Fostering human resources

Foster human resources who will achieve global businessgrowth (global human resources)
Foster human resources using Takara Holdings Corporate
History Museum, our training facility(2) Promoting the active
involvement of diverse humanresources(3) Achieving a comfortableworkplace environment and awork-life balance

Promote the active involvement of female employees
Promote the active involvement of senior humanresources
Promote the hiring of people with disabilities
Ensure workplace safety and sanitation
Comply with labor-related laws and regulations
Prevent long working hours
Promote diverse working styles

Related SDGs

Policies and Ideas for Each Materiality and Initiative Themes and Specific Measures
Wellness
As a company involved in food and medicine, the Takara Group aims to contribute to a healthy lifestyle throughproducts and services.
We will work to create a society where people can continue to enjoy a healthy lifestyle, including through thedevelopment of revolutionary biotechnologies such as gene therapy, the supply of related services, and thedevelopment of health-conscious products.

Initiative themes(1) Support for the developmentof global life science researchSpecific measures
Provide extensive support for the development of life
science research and industry
Contribute to the life science community(2) Application of genetic analysis
technology to testing anddiagnostics

Supply testing and diagnostic kits for viruses, etc.

(3) Social implementation of genetherapies

Gene therapy technology development to fulfill unmet
medical needs(4) Supply of health-conscious
products

Promote the appeal of carbohydrate-free and purinefree shochu
Develop carbohydrate-free and low-carbohydrate
products
Promote the appeal of salt-free sake for cooking
Supply organic foods, etc.
Develop products with consideration for food allergies

Related SDGs

Policies and Ideas for Each Materiality and Initiative Themes and Specific Measures
Responsible alcohol producer
Alcohol has played an important role as a communication tool for facilitating human relationships since ancient times.
However, since it also causes so-called alcohol-related issues, including the consumption of alcohol by those under the ageof 20 and drunk driving, there are both advantage and disadvantages to alcoholic beverages.
The Takara Group believes that tackling alcohol-related issues head-on is an important responsibility as a company that
manufacturers and sells alcoholic beverages, and we have therefore established, and are working on, the Basic Policy on
Responsible Drinking.
Basic Policy on Responsible Drinking
As a company engaged in the manufacture and sale of alcoholic beverages, we believe that it is an important responsibilityof the Takara Group to address alcohol-related issues, and we will work together with society through various activities todevelop a healthy alcohol culture.
• All employees of the Takara Group will act in a responsible manner to spread awareness about the appropriate
consumption of alcohol.
• We will endeavor to resolve issues such as alcoholism and other heavy drinking, the consumption of alcohol by thoseunder the age of 20, alcohol consumption by pregnant women, and drunk driving through educational efforts using our
website and pamphlets as well as by placing cautionary statements on our product packages and advertisements.
• We will work on alcohol-related issues with various stakeholders, including industry associations and NPOs.
• Support the WHO’s Global Strategy to Reduce the Harmful Use of Alcohol, and implement initiatives aimed ataccomplishing this.
• When engaged in the manufacture and sale of alcoholic beverages and their advertising activities, we will comply withrelated laws and regulations, voluntary industry standards, the Takara Group Compliance Action Guidelines, and internal
regulations.
• We will promote awareness programs for employees.
Initiative themesSpecific measures(1)Appropriate consumption of
alcohol

Educational efforts using our website and pamphlets(2)Implementation of responsible
marketing

Implement responsible advertising

Awareness programs for employees

Conscientious product labeling(3)Respect for global guidelines

Respect WHO’s global strategy to reduce the harmful useof alcohol(4)Participation in external
initiatives

Participate in the diffusion/awareness raising programs
conducted by public interest corporations regarding theappropriate consumption of alcohol

Related SDGs

Policies and Ideas for Each Materiality and Initiative Themes and Specific Measures
Environment
The Takara Group Environmental Policy

The Takara Group positions the harmonization of its business activities with global environmental preservation as one of its
key challenges, and contributes to building a sustainable society by establishing and continuously improving the environmental
management system.
1. We comply with laws and regulations related to the environment, in addition to other requirements that we have agreed to.
2. In the course of the Takara Group’s business activities, we place particular emphasis on the following points.
i. We strive to prevent environmental pollution.
ii. We strive to promote energy and resource conservation, and try to use sustainable resources.
iii. We strive to reduce greenhouse gas emissions and mitigate climate change.
iv. We support and promote activities related to biodiversity and ecosystem protection and preservation.
v. We strive for environmentally conscious product development, including promoting the 3Rs for containers andpackaging.
3. We actively disclose information on our environmental initiatives and environmental performance, while striving tocommunicate with society.
4. While using education and awareness programs to convey this Environmental Policy to all members of the Takara Group,
we also energetically support employees’ participation in social contribution activities.
Initiative themes(1)Response to climate change
issues(2)Appropriate water usage(3)Reduction of waste
generation(4)Response toenvironmentally conscious
product packages andpackaging(5)Preservation of ecosystems
and biodiversity

Specific measures
Reduce CO2 emissions from production processes
Reduce CO2 emissions from transportation processes
Water usage based on consideration for thecharacteristics of the region
Reduce plant waste volume and promote recycling
Initiatives for reducing food losses
Develop environmentally conscious products
Implement environmental education for children
Free distribution of educational pamphlets for recycling
Provide assistance for activities and research protecting
ecosystems and biodiversity
Implement environmental education for children

Related SDGs

Policies and Ideas for Each Materiality and Initiative Themes and Specific Measures
Human rights
The Takara Group has formulated the Takara Group Human Rights Policy to respect the human rights of all stakeholders,and is promoting various initiatives, including education and training.

The Takara Group Human Rights Policy

Recognizing that the Takara Group may potentially affect the human rights of various stakeholders, including business
partners, customers, and local communities, in addition to our employees, through our business activities, we respecthuman rights as set out in the United Nations’ International Bill of Human Rights and the International Labour
Organization (ILO) Declaration on Fundamental Principles and Rights at Work.
This policy applies to all officers and employees of the Takara Group. We also request business partners to support andcomply with this policy.
• We will comply with the laws and regulations of each and every country in which we conduct business activities.
• We will respect the diversity, personality, and individuality of all stakeholders, and will not allow any irrational
discrimination on the grounds of birth, nationality, race, ethnicity, creed, religion, gender, age, disability, sexual
orientation, gender identity, employment status, hobbies, educational background, etc.
• We support the right to freedom of association and the right to collective bargaining. Illegal child labor and forcedlabor are not permitted in domestic and overseas working environments.
• We will establish and operate whistleblowing contacts within the Company and at an external third-party organization
for reporting violations of laws, regulations, and internal regulations, including this policy. In addition, we will prohibit
any disadvantageous treatment of whistleblowers on the basis of such whistleblowing.
• We will extensively convey our Human Rights Policy to our employees, and provide ongoing education and training.
Initiative themes(1) Respect for human rights

Specific measures
Conduct human rights education at new employee
training and rank-specific training sessions
Understanding and respect for multiple cultures(multinational cultures)
Recruitment activities without discrimination
Initiatives to prevent harassment
Protect personal information and privacy(2) Initiatives ensuring due
diligence to human rights

Implement a human rights due diligence process

Related SDGs

Policies and Ideas for Each Materiality and Initiative Themes and Specific Measures
Governance（1/2）
The Takara Holdings Corporate Governance Policy <Basic Policy>

The Company has formulated “TaKaRa Group Challenge for the 100th,” our long-term management vision ending in thefiscal year ending March 31, 2026, which is the 100th anniversary of the Group’s foundation, and has established a Group
Vision* as well as management strategies and business strategies in order to achieve this vision.
We believe that achieving this Vision will lead to the sustainable growth of the Group and an increase in corporate value
over the medium- to long-term, and that what is required to effectively and efficiently realize this Vision is a corporate
governance structure that ensures a transparent, fair, speedy, and resolute decision making. At the same time, we also
believe that to continue to be a trusted corporate group, we need a structure that respects the positions of stakeholders,
including shareholders, customers, employees, creditors, and local communities, and enables us to make efforts inappropriate communication.
The Company aims for sustainable growth and an increase in corporate value over the medium- to long-term by
establishing a corporate governance structure based on the above policy, and will make efforts in accordance with thespecific policies set forth in the Takara Holdings Corporate Governance Policy.
*Our Vision: “Smiles in Life—Smiles are the Treasures of our Lifetimes—”
Using its proprietary technology to produce great-tasting products and revolutionary biotechnology to safely and reliably
deliver diverse value in the JTAB (Japanese Traditional Alcoholic Beverages), Japanese food, and life science categories,
the Takara Group will continue taking on the challenge of filling the lifestyles, lives and lifetimes of people around theworld with smiles.
Initiative themes(1) Promotion of corporate
governanceSpecific measures
Establish an optimum corporate governance structure
Directors and Board of Directors

Audit & Supervisory Board members and Audit &Supervisory Board
Election of independent officers

Officer compensation
Consider optimum corporate governance

Related SDGs

Policies and Ideas for Each Materiality and Initiative Themes and Specific Measures
Governance（2/2）
The Takara Group Compliance Action Guidelines <Basic Policy>
With the aim of realizing our corporate philosophy, which is “Contributing to the creation of a vital society and ahealthy lifestyle through our fermentation technology and biotechnology in a way that achieves harmony with nature,”
the Takara Group will always conduct trustworthy and fair corporate activities under the Takara Five Values, which are
the shared values of the Group.
1. We will comply with laws and regulations in Japan and overseas, fully recognize social ethics, and act with
common sense and responsibility as a member of society.
2. We will work to lower environmental burdens, and contribute to the development of life science that values the
dignity of life.
3. We will conduct sustainable business activities that are widely useful to society by pursuing profit through faircompetition rather than pursuing profit in a manner contrary to these Action Guidelines.
4. We will comply with employment regulations, and will not engage in any unfair or dishonest practices in violationof employment regulations.
5. We will always draw a line between public and private matters, and will not pursue personal gain by using
corporate assets, information, business authority, or position.

Initiative themesSpecific measures
Reinforce the compliance promotion structure(1) Promotion of compliance

Implement compliance education
Appropriate operate the whistleblowing system(2) Reinforcement of therisk management structure

Promote risk management (normal risk management)
Promote crisis management (emergency risk management)

Related SDGs

Policies and Ideas for Each Materiality and Initiative Themes and Specific Measures
Well-balanced diet
The Takara Group will increase the value and appeal of JTAB* and Japanese food, and will bring rich diets filled withconnections between people throughout the world by leveraging our position as a top manufacturer of JTAB, and ourJapanese food wholesaling network overseas.
Initiative themes(1) Providing the richness offood to people throughout
the world through JTAB andJapanese food(2) Creating communication
through sake and providing
a social lubricant

Specific measures<Spread and promote the appeal of JTAB and newvalue>
Hold food and beverage tasting events
Market development through innovative products
Communicate information using our website and SNS
Spread the appeal and value of JTAB overseas<Spread and promote the appeal of Japanese food andnew value>
Hold seasoning seminars and cooking labs incollaboration with retailers
Participate in external initiatives
Disseminate recipes featuring Hon-mirin and cooking
sake
Spread Japanese food culture overseas
Disseminate information about the enjoyment of sakeand sake culture*JTAB : Japanese Traditional Alcoholic Beverages

Related SDGs

Policies and Ideas for Each Materiality and Initiative Themes and Specific Measures
Procurement
In order to continuously provide customers with safe and reliable products and services, it is essential for us to continue
sustainable transactions with suppliers who are our business partners. The Takara Group aims to realize sustainableprocurement by ensuring the safety and quality of raw materials and more, and by also considering the social responsibility ofthe entire supply chain, including consideration for the environment and human rights as well as compliance with laws and social
ethics, based on the Takara Group Procurement Policy.

The Takara Group Procurement Policy
１．Ensuring safety and quality
In accordance with the Takara Group Quality Policy, we will promote activities aimed at ensuring a high level of safety and quality.
２．Consideration for the environment
Based on the Takara Group Environmental Policy, we will engage in activities with consideration for the global environment.
３．Consideration for human rights
In accordance with the Takara Group Human Rights Policy, we will engage in activities with consideration for human rights.
４．Compliance with laws and social ethics
In accordance with the Takara Group Compliance Action Guidelines, we will comply with laws and social ethics.
We will not request entertainment or gifts from suppliers, nor will we be the recipient of entertainment that exceeds theboundaries of common sense.
５．Equitable and fair transactions
We will treat all suppliers with common sense and honesty, and conduct equitable and fair transactions.
When selecting suppliers, we will make our decisions after equitable and fair comparisons and evaluations, based on quality,
price, delivery date, technical capabilities, supply capacity and other conditions.
６．Maintaining information security
We will appropriately manage confidential information and personal information obtained during procurement activities.
７．Expectations of suppliersWith regard to the above, we expect the same considerations from our suppliers, and will endeavor to promote initiatives
throughout the entire supply chain.
Initiative themes(1) Collaboration with
suppliers

Specific measures

Request guideline compliance from suppliers

Related SDGs

Policies and Ideas for Each Materiality and Initiative Themes and Specific Measures
Community

The Takara Group will contribute to the development of local communities by seeking communication with local
communities, recognizing their needs and issues, and undertaking initiatives to resolve them.
The needs and issues of local communities are diverse and are likely to change with the times. These range fromglobal issues such as climate change, to local issues such as garbage, the education of children who will be
responsible for the next generation, promotion of the economy and culture, and large-scale disaster support.
As a good corporate citizen, we will strive to identify the type of issues currently facing local communities andunderstand what these communities need, by communicating with our stakeholders. As a result, we will contribute to
the development of local communities by considering how we can make a contribution to the needs and issues wehave learned about, and putting this into practice.

Initiative themesSpecific measures(1) Education for children

Hold events for the purpose of environmental
education and food education, and conduct on-siteclasses at local elementary schools(2) Contribution to thepromotion of local communities
and culture

Participate in local cleaning activities and support local
communities(3) Promotion of local
economies(4) Support after large-scaledisasters

Continually foster community-based products
Develop local economies by effectively utilizing
untapped resources
Provide donations, water supply, and volunteer
activities in disaster-affected areas

Related SDGs