Delicio
us, Fun, and Healthy

Morinaga & Co., Ltd.

CSR Report

2020Corporate Principles and Mission

Vision (Basic Philosophy)

Delicious, Fun, and Healthy
MissionWe aim to contribute to the realization of abundant, safe eating choices andthe promotion of health among the people of the world.
To this end, we provide products, services, and information that offer value
and inspiration through business activities based on our pioneering spirit.

Code of Conduct
The Morinaga Group’s corporate principles reflect our vision (basic philosophy), which is “Delicious, Fun, and Healthy,”and our mission, which is “We aim to contribute to the realization of abundant, safe eating choices and the promotion ofhealth among the people of the world. To this end, we provide products, services, and information that offer value andinspiration through business activities based on our pioneering spirit.”
In realizing our corporate principles, we have positioned customer trust as the most precious value for us, and we cherish
our relationships of trust with customers.
We are aware that this trust is premised on continuing to develop and provide customers with products, services, andinformation that contribute to society, on placing the utmost priority on creating excellent quality products, and on
ensuring customer safety and well-being, while at the same time expanding all Group company business activities inaccordance with our corporate principles and in compliance with laws and ordinances, the corporate Code of Conduct,and internal regulations.
Furthermore, in order to fulfill our corporate social responsibility and public mission, we are proactively undertaking initiatives to protect the global environment and contribute to society by endeavoring to achieve symbiosis with society inaddition to sustainable growth.
To this end, we aim to establish a comfortable, positive corporate atmosphere where standards of conduct are fully
upheld in daily business activities based on a firm understanding of the spirit of our Code of Conduct.
1. Promote customer-focused management and ensure excellent product quality together with safety and peace of mind
We will thoroughly implement the policy of customer-focused management while developing products, services, and informationthat contribute to society and by placing the utmost priority on excellent product quality together with safety and peace of mind.
2. Strictly comply with laws and ordinances, the corporate Code of Conduct, and internal regulations
We will comply with the corporate Code of Conduct, all laws and ordinances, and internal regulations in accordance with social
conventions and norms.
3. Undertake business activities based on open, transparent, and free competition
We will pursue business activities based on open, transparent, and free competition.

4. Place the utmost importance on communication
In addition to maintaining good communication with all stakeholders (customers, society, suppliers, business partners, employees,
and shareholders), we will ensure the reliability of accounting and financial reports, endeavor to enhance the transparency of management, and disclose corporate information in a proactive and accurate manner.
5. Protect the environment and contribute to society
Under an environmental philosophy that emphasizes the need to be kind to the environment, we will incorporate environmental
considerations into every aspect of our business activities. Furthermore, by moving beyond our social activities as a good corporate citizen, we will proactively undertake social contributions that promote the healthy physical and mental development of children worldwide under our key concept of “Morinaga: treating people everywhere with kindness and valuing children.”
6. Reject and oppose antisocial forces
We will decisively oppose antisocial forces that threaten the good order and safety of society.

7. Respect human life and dignity
We will respect the personalities and individuality of work colleagues and strive to establish a workplace environment that instills
safety, abundance, and comfort.

8. Practice the Code of Conduct
By recognizing that putting the spirit of the Code of Conduct into practice, corporate officers and top management will take theinitiative and set the example for others in building an effective internal control system and ensuring that employees are fully
appraised and invested in the Code of Conduct by proving Morinaga worthy of customer trust. In the unlikely event of a breachof the Code of Conduct, the situation will be promptly evaluated and determined. In addition to implementing all necessary measures, including the swift and accurate disclosure of information, we will endeavor to identify the root causes and implement preventive measures. We will clarify responsibilities and ensure strict disciplinary action as warranted.

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Morinaga & Co., Ltd. CSR Report 2020

Standards of Behavior
Based on the Morinaga Group Code of Conduct, we have established the Morinaga Group Standards of Behavior as
shown below. The Standards of Behavior are the rules that stipulate behaviors and attitudes expected of all regular andassociate employees of the Morinaga Group. Moreover, both the Code of Conduct and the Standards of Behavior are thepromises that we make to customers. Within our individual roles, each of us must comply with the Standards of Behavior
and prove ourselves worthy of customer trust.
1. We will respect the trust of customers and behave from the perspectives of customers.
2. In all business processes of products, services, and information planning to sales, we will behave in a manner that places theutmost priority on ensuring excellent product quality, safety, and reliability.
3. We will label products correctly and provide customers with accurate information.
4.	We will endeavor to communicate to our shareholders, as well as with society, by proactively and fairly disclosing to the generalpublic a broad range of corporate information in addition to accurate financial reports.
5. We will respond to the voices of customers with sincerity and speed and report information accurately.
6. We will comply with laws, ordinances, and internal regulations in accordance with the Code of Conduct.
7. If a conflict should arise between corporate interests and laws, ordinances, and internal regulations, we will choose without hesitation to comply with such laws, ordinances, and internal regulations.
8. We will demonstrate courage to refuse, courage not to hide, and courage not to turn a blind eye.
9. We will neither leak nor misuse confidential corporate information.
10. We are aware of the importance of intellectual property rights and will take meticulous care to ensure that neither our own intellectual rights nor the rights of others are violated.
11. We will conduct business activities in the spirit of fairness, transparency, and free competition.
12. We will maintain a healthy and appropriate relationship with governmental and administrative bodies.
13. We will firmly oppose antisocial forces and not respond to illegal or inappropriate demands.
14. We will promote resource-saving, energy-saving, and recycling activities and endeavor to reduce waste and environmental pollutants.
15. We will respect our relationships with all people surrounding the Morinaga Group, such as local communities, our business partners, and our shareholders.
16. We will neither accept nor provide excessive business entertainment or gifts.
17. We will respect the personalities and individuality of the people with whom we work and will not behave in a manner that comprises discrimination, sexual harassment, or abuse of authority.
18. We will endeavor to create a workplace environment with a positive and friendly atmosphere that is safe and easy to work in andwhere workers can experience a sense of fulfillment and comfort.
19.	In the unlikely event of a breach of the Code of Conduct or the Standards of Behavior, we will evaluate and determine the materiality and the scope of the breach. In addition to implementing all necessary measures, including the swift and accurate disclosureof information, we will endeavor to identify the root causes and implement preventive measures.

C ontents● Corporate Profile● Together with Children

03-06 Message from the President

37-38 Food Education Experiences

01-02 Corporate Principles/Mission/Contents
07-08 Morinaga Group’s Founding Spirit and
120 Years of History
09-10 Value Chain and Response to Social
Issues11-12 Providing Value through “Food”● CSR Management

13-16 CSR Management

17-18 Collaboration with Non-affiliate
Companies/Organizations

37

Philosophy of Activities

39

Nature Exploration

40

Sports Experiences● Environmental Initiatives

41-42 Environmental Management
43

Environmental Load Generated byBusiness Activities

44-45 Realization of a Low-Carbon Society
46

Creating a Recycling Society● Together with Customers

48

Initiatives to Combat Environmental
Pollutants /Biodiversity Initiatives

25-26 Communication with Customers● Governance

19-20 Stakeholder Engagement
21-24 Commitment to Quality● Together with Business Partners
27-28 Supply Chain Management● Together with Employees
29-31 Diversity

31-32 Diversity―Health Management Initiatives―

33-36 Diversity―Human Resource Development―

47

Environmentally-friendly Packaging
Materials

49-52 Corporate Governance
52

Compliance

54

Respect for Human Rights

53

Risk Management● ESG Data

55-58 ESG Data
● Corporate Profile/Editing Policy
59
60

Network of the Morinaga Group

Morinaga Group Corporate Profile/Editing
PolicyMorinaga & Co., Ltd. CSR Report 20202

Messagefrom
the President

President and Representative Director

Eijiro Ota

3Morinaga & Co., Ltd. CSR Report 2020

“We aspire to deliver happiness toeverybody we engage with”

Aiming to be a company that hands its
pioneering spirit down to successive
generations and pursues enduring progress

Dealing with COVID-19
The ongoing spread of COVID-19 has placed the worldin an unpredictable and intensely challenging situation. I
sincerely hope that the virus will come to an end as soon
as possible, and extend my heartfelt sympathies to all
those who have been infected.
During the state of emergency declared by the Japanese
government from April to May this year, the Morinaga
Group continued to pursue its mission as a food manufacturer by working to maintain consistent production
and supply of its products. At the same time, we took
action to prevent infection from spreading and ensure
the safety of our employees through measures such as
wider implementation of the teleworking system we had
been promoting for the previous three years. We also provided a total of 360 thousand pouches of in Jelly nutri-Morinaga Group’s Actions
in Response to COVID-19• At production sites, we have continued tosupply products and have enforced measures
to prevent infection (checking employees’
temperatures, ensuring mask wearing andhand washing, and disinfecting with alcohol)• We have extended our work-from-home(teleworking) system to cover more
employees in job types for which teleworking
is possible• We donated in Jelly to health professionals(April to June 2020)

tional jelly drink to medical institutions across Japan tosupport health professionals working on the front line tosave people’s lives.
While the impact of COVID-19 has been undeniably devastating, it has provided an opportunity for countries
around the world to ask themselves what form their societies should take from now on. I believe that, as a memberof society, the Morinaga Group must also take this opportunity to review how it operates. We will continue to be
guided by our mission of operating a food business indispensable to people’s lives as we strive to fulfill our responsibilities to society and to the future, always putting safety
and reliability first.

Staying True to Our Founding
Spirit and Redefining Our
Vision and Mission

Having marked the 120th anniversary of its founding in
2019, the Morinaga Group has been responding to society’s needs not only in the Confectionary & Foodstuffs
and the Frozen Desserts businesses that comprise its
existing domains, but also in the Health Products business, which is a growth domain. Currently, we provide
customer-approved quality products of value in both
domestic and overseas markets.
Looking back, Morinaga’s history started in the Meiji
period (1868–1912), when nutritional food was still
scarce in Japan. Our founder, Taichiro Morinaga, travelled
to the United States and encountered the confectionery
business that would become his vocation. For 11 years,
Taichiro trained himself in this foreign land, then took
the techniques he had learned back to Japan, where helaunched his business in 1899, inspired by the dream ofdelivering delicious and highly nutritious Western confectionery to its people. Japanese citizens at that timeMorinaga & Co., Ltd. CSR Report 20204

were unfamiliar with Western confectionery, and the process of winning them over and commencing commercial
production turned out to be a steep uphill climb. It was a
massive challenge that entailed breaking the establishedmold. Ever since then, the Morinaga Group has inheritedthat pioneering spirit from one generation to the next,
generating a succession of products that deliver newvalue and excitement to customers.
We regard this founding spirit as the keystone of all we
do. It is crucial to always keep the founding spirit at theheart of our business and align ourselves flexibly withsocial change, thinking carefully about our reason forbeing as a company both now and for the future.
In line with this belief, we are currently holding discussions within the Morinaga Group to redefine our Vision
and Mission and reexamine our Purpose, which equates
to the company’s reason for being within society. When
we asked our employees some questions about whatkind of company they want us to be, we received almost
a thousand responses. As a result of this and other feedback, I was pleased to find that our employees are also
increasingly interested in this topic. We will leverage
the trust and brand power we have built up over morethan 120 years as we further clarify our future direction,
remaining true to the essence of Morinaga.

Developing Our CSR Initiatives
under Strong Leadership
The world as a whole is beset by a great many problems relating to society and the environment, including climate change, economic disparities, and poverty.
The entire international community is still striving tofind solutions to these challenges. The adoption of thesustainable development goals (SDGs) by the United
Nations in 2015 increased the momentum, and companies in the various countries are now also expected toplay their part.
Here in the Morinaga Group, we formulated our CSR
Basic Policy during the fiscal year ended in March 2019,and have implemented this policy since then with theaim of reflecting society’s requirements and expectations in our business management and fulfilling our
responsibilities to society. The three priority tasks set out
in the policy are providing value through food, nurturing

5

Morinaga & Co., Ltd. CSR Report 2020

the next generation, and considering the global environment and society.
To provide value through food, we will use food as themeans to contribute to the health of people’s minds andbodies. Technologies for mixing and processing healthy
ingredients that are attracting public attention such aslactic acid bacteria and proteins, bringing out the bestof their flavors, is a major strength of ours. We will further enhance the Wellness domain, whose core products
include the in Jelly brand, while offering unique added
value in our existing domains as well, to provide our customers with satisfaction and happiness.
Nurturing the next generation is important too, as themeans to support healthy growth among the children
who will be the leaders of the future. We will continue
to invest effort in organizing experiential programs
addressing dietary education, nature, and sport, among
other activities.
With regard to consideration of the global environmentand society, measures to address climate change areindispensable now that the threat posed by global warming is increasingly making itself felt within our daily lives.
It is also imperative to develop more environmentallyfriendly manufacturing processes, including packaging
and disposal, to cope with such issues as marine plastic
pollution. Morinaga was ahead of its peers in adopting“cartocan” packaging (cylindrical containers made of apaper-based material), but we regard it as importantto pursue these activities not just on our own, but with
the involvement of our stakeholders. In order to ensure
steady progress in driving such initiatives forward, therefore, Morinaga’s management will join forces and dedicate themselves to engaging with CSR as a management
challenge. We will instill an awareness throughout theGroup that CSR can generate significant value over thelong term and strive to bolster related initiatives on aGroup-wide basis.
Morinaga is currently deliberating on the formulationof its new Medium-term Business Plan to start from thefiscal year ending in March 2022, as well as its long-term
vision targeting 2030. Having timed these deliberations
to coincide with the redefinition of our Purpose, we areaiming to develop sustainable business managementfrom a longer-term perspective.

Messagefrom
the President“Going Concern” Conceptual Diagram

Aiming to Be a Company thatCan Deliver Happiness to Its
Stakeholders
I believe that the most important thing for a company is
its ability to continue as a going concern and that companies should contribute to the enduring developmentof society. This is because companies are part of society.
The food industry, which is closely connected to people’s lives, is not the sort of industry in which a single
technological innovation will transform things overnight.
Business is built up over time, as indicated by the large
number of long-seller products that are familiar to multiple generations of customers.
We believe that there are three elements essential to fulfilling our responsibilities as part of society and achieving
enduring development together with society: our founding spirit, the customers’ perspective, and diversity. We
will hand down our founding spirit, which constitutes ourreason for being as a company, and value our customers’
perspective to fully address the needs of customers astimes change. In addition, we will maintain diversity inorder to continue meeting a wide range of expectations.
Taking these three elements as pillars, it is important topursue business activities by joining forces through theconcept of management by everyone.

In the Morinaga Group, diversity is defined as “leveraging each person’s individuality,” and could include both
visible attributes such as gender, nationality, and physical ability, and invisible attributes such as values, experience, and culture. I am convinced that respecting eachother and making efforts to interact leads to diversityof knowledge, which produces innovation, and creates
new value.
To make societies sustainable, companies must think
not only about what makes their stakeholders happy,
but also what makes society as a whole happy. I believethat the Morinaga Group’s employees who have inherited our founding spirit are equipped with the strength
to think of society as a whole. Furthermore, I believethat increasing their resilience to adjust to the changing
times and continuing to take on challenges that draw
on their pioneering spirit will enable them to overcome
the obstacles on the path to a sustainable society. The
Morinaga Group will join forces with each and every oneof its employees as they dedicate their energies to theirwork, and meet the expectations of our stakeholders as
a company pursuing enduring progress.

Morinaga & Co., Ltd. CSR Report 20206

Morinaga Group

Founding Spirit and 120 Years of History
Pioneering
spiritwoven intotimes

“I wish to provide delicious, highly nutritious Western confectionaries to the people ofJapan.” Morinaga & Co., Ltd. was launched with this strong desire as expressed by
Taichiro Morinaga, the company’s founder. In the late Meiji era, there was no form oftechnical expertise on the manufacturing of Western confectionery in Japan. Taichiro
continued his efforts with dogged persistence—a pioneering spirit to take on unprecedented challenges. This spirit is still serving as the Morinaga Group’s source of growth.

Pioneering Spirit—The Origin of the Morinaga Group
Birth of Morinaga & Co., Ltd.
After 11 years of training in the
United States, Taichiro Morinaga
returned to Japan in 1899 with techniques for manufacturing Western
confectionery. Then he opened atiny shop—with a space of only 2
tsubo (about 6.6 m2)—in Akasaka
Tameike, Tokyo. He named the shop
Morinaga’s Western Confectionery
Shop and began the production ofconfectionery there. This marked thebirth of today’s Morinaga & Co., Ltd.
Western confectionery was scarcely
familiar to the Japanese people inthose days and slow to be acceptedby the population. However, Taichiro tenaciously continued to make
improvements and created a wide
range of products.

The founder
Taichiro Morinaga

Make Western
confectionery available
across JapanAs a result of Taichiro’s hard work,
Western confectionery gradually
gained its popularity. Around thattime, he invited Hanzaburo Matsuzaki as a business partner, andbegan to steer the business towards
growth and expansion. Taichiro
had a belief that, in order to makedelicious and nutritious Western
confectionery available nationwide,
it must be produced in a large scaleand delivered to as many people
as possible. Based on this belief, he
imported a state-of-the-art confectionery production machine andpursued the modernization of theconfectionery manufacturing process. He was also eager to expand
sales network and run advertisements. He attracted many people’s
attention using unique marketing
techniques, including eye-catchingnewspaper ads, posters, and marching bands. Through these innovative efforts, he succeeded over timein disseminating Western confectionery across Japan.

Modernization ofconfectionery
manufacturing

1919

Introduction of
the Eight-hour
Workday

1905

1904

The first Angel Markis registered

1909

Contribution to society

Morinaga was the first in the industry toengage in the initiatives to improve the workplace environment, which include the adoption of employee uniforms in 1904 and theintroduction of eight-hour workday system in
1919. At the same time, under the leadershipof management, various welfare measures
were undertaken, such as employee education, establishment of a monthly-pay system,and strengthening of hygiene control.

When the Great Kanto Earthquake struck in
1923, the Company immediately took actions
to rescue victims by providing aid supplies
on consecutive days, including 60,000 bagsof sweets and 15,000 cans of condensed milk.
Since then, Morinaga has been engaged in
rescue activities every time a disaster strikes.
Currently, the Company is under contract with
Yokohama City and other municipal governments to provide emergency food on a preferential basis in the event of a disaster.
In 1944, in response to the government’s
request, Morinaga was engaged in the development and mass-production of penicillin for
the first time in the nation, and thereby contributed to saving many war-wounded people.

1944

1923

Aid for theGreat Kanto
Earthquake
victims

Development of Japan’s first
domestically-produced penicillin

Marching bands foradvertising

A uniform
system isadopted1937
1899

Establishment of Morinaga’s
Western Confectionery Shop

1907

The first factory tour isorganized

Sales start from a street
vendor cart

7

Morinaga & Co., Ltd. CSR Report 20201914

Launch ofMilk Caramel

1918

Launch ofMilk Chocolate

1923

Launch of Marie
Biscuits

1930

Launch of Manna
Biscuits for infants

A Mother's Day
Meeting is held

To Realizea Sustainable Society
2019

120th anniversaryof founding

2018

Morinaga is certified asa White 500 company(for three consecutive
years up to 2020)

Towards an enduring future
While flexibly adapting itself to the times andsocial changes, Morinaga has created a variety
of products and offered new value all throughthe ages.

2017

2013

The Platinum Kurumin
certification is obtained

Today, to achieve the goal of a sustainable
society, being healthy is a prerequisite forboth the global environment and humanity.
We believe that it is our mission to create newvalue that can help meet this prerequisite
towards an enduring future.

Launch ofPassienol2008

In accordance with its vision of “Delicious, Fun,and Healthy,” Morinaga will continue to takeon challenges for the solution of social issues
and achievement of a sustainable society
through food.

2006

Launch ofMorinaga
Collagen

One Chocolate for
One Smile project islaunched

2004

DisasterPrevention
Guide iscompiled andreleased

2000

1971

1960

Participation in
the Bellmark Program

1967

Consumer Division iscreated1989

All 4 factories obtain the
ISO 14001 certification

Launch of Ice Box

Launch of
Chocoball

1974
1972

Launch of Choco
MonakaLaunch of Amazake
canned drink

1994

Launch of in Jelly

1957

Launch of Hotcake Mix
premixed pancake mix

1971

Launch of Koeda
chocolate1975

Launch of HI-CHEW

Morinaga & Co., Ltd. CSR Report 2020

8

Our Value Chain and Response toSocial Challenges

Planning andDevelopment

Value Chain

RecognizedSocial Challenges

We develop tasty, value-added
products that are aligned withchanges of the times and customers’ demands, as well as
technologies that support the
product development efforts.

We procure high-quality raw
materials and packaging supplies in a stable manner fromall over the world throughdomestic and overseas suppliers.

Food safety

Climate change

Employee diversity, humanresource development,
health management

Biodiversity

Together with customers(See pp. 21-26)

Response by
MorinagaGroup

Procurement

Respect for human rights

Together with business
partners(See pp. 27-28)

Together with employees

Together with employees(See pp. 29-36)(See pp. 29-36)

Environmental Initiatives(See pp. 41-48)

Three pillars ofMorinaga Group CSR Basic Policy

Educating the Next Generation

ProvidingFoundation
9

Morinaga & Co., Ltd. CSR Report 2020

In order to achieve a continuous growth, it is essential for the Morinaga Group to consider social and environmental impacts that may be caused by its value chain as a whole. For a food provider company like Morinaga,
food safety and food waste are critical issues. Further, as a manufacturer that operates multiple production
sites at home and abroad, we believe we are held accountable for the climate change and plastic issues. We
also recognize that our procurement of raw materials involves environmental issues, such as resource depletion in, and impacts on the ecosystem of, the countries of origin.
To solve these wide ranges of issues, each and every employee needs to be equipped with issue-solving capabilities. To that end, we are implementing measures to promote diversity and physical and mental health,as they are the basis for employees to think flexibly and come up with new ideas.

Production
We prioritize excellent quality,
safety, and security in manufacturing products. Whileleveraging our strength of proprietary production techniques,
we are keen to develop innovative technologies.

Distribution
and Sales

We ensure stable supply of
products nationwide throughretail shops and organizedretailers, based on our standards set out for an appropriate
distribution of shipped products.

Consumption/
Disposal

We are committed to reducing not only waste food andmaterials generated in the
production process, but also
packaging materials to ensure
post-consumption waste
decrease.

Food safety
Food safety

Employee diversity, humanresource development,
health management

Climate change

Climate change

Employee diversity

Food waste
Plastic issue

Water risk

Together with customers(See pp. 21-26)

Together with employees(See pp. 29-36)

Environmental Initiatives(See pp. 41-48)

Together with customers(See pp. 21-26)(See pp. 21-26)

Together with business
partners

Together with business
partners

Together with employees

Together with employees(See pp. 29-36)(See pp. 29-36)(See pp. 27-28)

Environmental Initiatives(See pp. 41-48)

g Value through Food

Together with customers(See pp. 27-28)

Environmental Initiatives(See pp. 41-48)

Consideration for
Global Environment and Societyof Our CSR Activities
Morinaga & Co., Ltd. CSR Report 202010

Providing Value through Food

Providing Products that Contribute to
Healthy and Happy Lifestyle
With its vision (basic philosophy) of “Delicious, Fun, and Healthy,” the Morinaga
Group has always met the needs of society and created new value of food.
As people’s lifestyle changes, society as a whole is becoming increasingly
health-conscious year by year, and there is a growing need to take proper
nutrients in an easy and functional way.
In response to these social demands, the Morinaga Group has been working on
the development of wellness products that can help people lead a healthy andhappy life.

Morinaga Collagen

e
Prov

d

y an

nalit

ctio
n fun

ness

ious

delic

A brand of beauty- and health-conscious drinks that havebeen proven, for the first time in Japan, to have triple
functionalities for skin (moisturization), knee joints, andbones. Each product contains 10,000 mg of easy-to-digest and easy-to-absorb low-molecular-weight collagen,which is one of the highest content levels among collagen drinks. Using our unique production technology, we
succeeded in reducing the odor peculiar to collagen andproviding not only the functionality but delicious taste.
●Launch year: 2006

in BarSenobi Cocoa

ss

usne

io
Delic

th
d wi
bine
com lthinesshea

Designed to support children’s growth and promote allfamily members’ health, a nutritionally functional foodMorinaga Cocoa Senobi contains calcium and othernutrients while delivering deliciousness. Its ingredients
include highly absorbable milk calcium derived from milk,
LAC-Shield®* lactic acid bacteria that enhance physicalcondition, and milk oligosaccharide. Easy to dissolve incold milk, the product helps you to ingest nutrition easily,
while offering a good taste.
●Launch year: 2016
*LAC-Shield is a registered trademark of Morinaga Milk Industry Co., Ltd.

11

Morinaga & Co., Ltd. CSR Report 2020

n
rotei

p
Take

q

y at
uickl

here

anyw

Our in Bar products support busy modern people byhelping them take a higher protein anytime anywhere.
Each bar provides 10g to 15g of protein. These bars
also contain seven B-complex vitamins that are necessary to activate protein, allowing you to supplement
your diet that tends to lack certain nutrients due tobusyness, or to eat as a light snack when you feel a bit
hungry.
●Launch year: 2009

ZEN MEAT

- an

Body

ndly

-frie

rth
d ea

eat

ble m

ta
vege

ZEN MEAT is a plant-based, animal ingredient-freemeat made from soybean blended with brown rice. It
is low in fat, free from cholesterol, and rich in protein
and dietary fiber. Currently, Zen Meat Keema Curry(minced-type) is offered at some restaurants. It is asustainable product that can be enjoyed at ease byvegans and vegetarians, and contributes to the solution of future issues such as the climate change due
to an increasing number of livestock as well as thedepletion of animal protein as a result of global population growth.
●Launch year: 2017

in Jelly

Macrobiha Biscuits

M

ides
Prov

ntial

esse

y

uickl

nts q

ie
nutr

The nutritional jelly drink in Jelly, which was developedby listening to the voice of athletes, allows you toeasily and quickly charge the energy and nutrients you
need. The product is used for a wide range of purposes
including supplying nutrients when playing sports,
being busy, not feeling well, or evacuating from a disaster. Making full use of our processing technology, we
reduced the bitterness and strong flavors distinctive tothe nutrients and achieved a delicious taste, pleasanttexture, and smooth drinking feeling. Further, the container (a pouch accompanied by a straw) is convenient
to carry and readily held by hand, and has an easy-toopen cap. Well received by a broad range of generations, it holds the largest share of the jelly drink market.
●Launch year: 1994

d
ecte

h sel

wit
ade

nly

nts o

die
ingre

Reflecting our commitment to maintaining ingredients’ natural taste and texture, Macrobiha Biscuits
are made without using artificial flavors, emulsifiers,
margarine, shortening, nor animal materials, butusing carefully selected ingredients such as beetsugar instead of white sugar, domestically-produced
whole wheat with the germ, fiber-rich oats, and dried
fruits soaked in fruit juice. The product is popularwith those who appreciate foods that are made withhigh-quality ingredients even in their busy daily lives.
●Launch year: 2014

*Macrobiotics: A concept that pursues a healthy lifestyle by eating adiet that is in harmony with nature, mainly composed of grains andvegetables.

Morinaga & Co., Ltd. CSR Report 2020

12

CSR Management
CSRビジョン_Final

Morinaga Group CSR Basic Policy/CSR System Diagram
Achieving a sustainable society through “food”

Consideration for Global
Environment and Society

Employees

Providing Value through Food

Globalenvironment

Educating the Next Generation

In accordance with theMorinaga Group’s visionof “Delicious, Fun, andHealthy”, we aim to resolve various social issues
and realize a sustainable
society through “food,”
promoting CSR activities incoordination and cooperaCustomers
tion with stakeholders.

Local
community
Shareholders/investors

Business
partners*Foundation of Morinaga’s CSR:
“Corporate governance/compliance,” “Building sustainable
relationships of trust with stakeholders,” “Respect for humanrights,” “Sustainable supply chain
management,” and “Work fulfillment and growth”

Foundation
Foundation ofof our
our CSR
CSR activities*
activities*
VisionVisionEducating
the Next
Generation

Delicious, Fun, and Healthy※CSR活動の基盤：「コーポレートガバナンス／コンプライアンス」「ステークホルダーとの持続的信頼関係の構築」「人権尊重」「持続可能なサプライチェーン・マネジメント」「働きがいと成長」

CSR基本方針

ProvidingValue through“Food”

Consideration
for the Global
Environment/
Society

森永製菓グループは「おいしく、たのしく、すこやかに」というビジョンのもと、「食」を通じて社会課題の解決と持続可能な社会の実現を目指し、ステークホルダーと連携・協働して、CSR活動を推進します。
1.「食」を通じた価値の提供

2. 次世代育成

３. 地球環境・社会への配慮

私たちは食をお届けする企業として、食の安 私たちは、未来を担う子どもたちの心とから 私たちは地球環境や社会に配慮し、循環型 are considerate of the globalWe
We support the healthy growth
全・安心な品質を追求するとともに、食による だのすこやかな成長を応援し、次世代育成 社会の構築と持続可能なサプライチェーン
environment and society, aimingof children, who are the leaders
心とからだの「おいしさ」「たのしさ」「すこや に貢献します。
の形成を目指します。
かさ」に資する価値をお客様に提供します。
towards the creation of a recyof the future, thereby contributcling society and sustainable
ing to the development of the
supply chains.
next generation.
Asabusinessthat
delivers
food
toconWe continuously improve our
We provide food education
sumers, we not only pursue food safety
environmental management
experiences, nature explorations,and reliable food quality, but also prosystem through, for example,
and sports experiences based onvide our customers with value throughenvironmentally-conscious
the basic principle of “aiming tofood that contributes to the “Deliciousproduct development and ininurture children’s healthy physness, Fun, and Health,” for both the mind
tiatives to reduce CO2 emissions,
ical and mental development”
and body.
through hands-on experiences.
promote the reduction of waste
emissions and recycling, encourAs a way to make a social contribution
age the management and reducthrough products, we offer products thattion of environmental pollutants,
meet diverse needs, including products
and preserve biodiversity.
designed to support dietary habits in ourbusy modern days, as well as productsthat help people lead a healthy life. We
are also facilitating communication withour customers based on the inquiries,
opinions, and requests received by the
Customer Service Center.

See pp. 37-40 Together with Children

See pp. 41-48 Environmental Initiatives
See pp. 11-12 Providing Value through “Food”
See pp. 21-26 Together with Customers

13

Morinaga & Co., Ltd. CSR Report 2020

Message
Message from the Officer in Charge
In recent years, we have seen a number of social issues emerging on a global-scale.
Towards the solution of these issues, which include climate change, resource depletion,
biodiversity loss, child labor, human rights abuses, and at a more daily-life level, foodwaste, the Morinaga Group established its CSR Basic Policy and CSR System Diagram toshow a general direction we should pursue. Specific CSR activities have been reviewed
and optimized constantly from an objective perspective, via dialogue with experts andstakeholders. Aiming at the achievement of a sustainable society in the future, we, theMorinaga Group, are committed to further contributing to society through our businesspractices, and engaging in CSR activities in collaboration with a number of stakeholders.

Director and Managing
Executive Officer

Machiko Miyai

CSR Promotion System
We have established the CSR Group in the Corporate Communication Division to promote CSR activities in collaboration with other relevant divisions. We also hold meetingsof the CSR Committee, which is chaired by the President, todiscuss matters to work on to achieve a sustainable society from an ESG (environment, society, and governance)
perspective, as part of our efforts to promote the CSRManagement on a company-wide basis. In particular, in
the aim of strongly promoting organizational diversity, weestablished the Diversity Promotion Office in April 2020,
as a direct report to the President. We are working on the
promotion of CSR with an organizational structure thatallows quick decision-making.

Structure and Frequency of CSR Committee
ChairmanPresident

Members

Directors in charge of
relevant divisions or
Executive Officers

Secretariat

General Manager ofCorporate Communication
Div., Head of Corporate
Strategy Div.

Meeting Frequency

Twice (FY2020/3:
the company’s fiscal year
ended in March 2020, same
abbreviation to follow);
once a year in principle

Measures to Embed into the Organization
We regularly hold employee training sessions designed
to embed business practices that are performed from a
CSR perspective. In August 2019, we organized a training
session entitled “Integrating CSR into Management—What
Are the Corporate Responsibilities in the SDGs Age?” andinvited Professor (non-tenured) Masao Seki from Meiji
University as a lecturer. Approx. 70 people including online
participated the session.
As in-house training, we provided opportunities to explain
the CSR Basic Policy and report on the CSR activities inpractice as part of such programs as the onboarding, innerbranding, and branch training, in which 304 attendees
participated during FY2020/3. The level of CSR awarenessamong our employees is increasing year by year, as theseattendees seemed to be very active in exchanging opinions
about, and expressing their interest to join, the visiting lectures (see p.38) and the social contribution initiatives suchas the One Chocolate for One Smile program (see p.17).

A lecture for
executives andmanagers of eachbusiness location

In-house training

Morinaga & Co., Ltd. CSR Report 2020

14

CSR Management

Strengthening Sustainable Management
In FY2021/3, management-led discussions are underway
about management strategies and materiality assessments toward further integration of CSR and sustainability thinking into management.
Specifically, we are working to identify social issues surrounding the Morinaga Group and verbalize our reason
for being in society (the purpose), that is, how the Group

The Process for Reviewing Our CSR Basic
Policy and CSR System
In the aim of incorporating society’s demands andexpectations for the Morinaga Group into management
and steadily promoting CSR in a Group-wide manner
toward the achievement of a sustainable society, we
reviewed our former CSR Basic Policy and CSR Systemand established a new Policy and a System Diagram in
FY2019/3 (see p.13). From FY2019/3 through FY2020/3,
we held CSR training sessions for employees at theheadquarters, branches, factories, and the R&D center toembed the Policy into the organization.
In conjunction with the review of the CSR Basic Policy
and the CSR System, we revised our Environmental Policy(see p.41), and formulated the Human Rights Policy (seep.54) and the Procurement Policy (see p.27) in FY2019/3.

Food safety &security

can contribute to the achievement of a sustainable society. To accomplish the purpose, we figure out significant
challenges we face and set specific KPIs and actions
to be taken. The details will be released when they are
made available during FY2021/3 or thereafter.

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

Planning Process

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

Development project begins
2017

AugustMental andphysical health

Environmental
issues

September

Sustainableprocurementof rawmaterials

Diverseworking styles

Respect forhuman rights

December

2018

JanuaryMay

15

Morinaga & Co., Ltd. CSR Report 2020

STEP 1Analysis of matters requested
by external institutions

STEP 2

Conducting ofstakeholder surveys

STEP 3

Holding of interviews withinternal related divisions

STEP 4

Holding dialogues with experts

Decision

Approval at the CSR Committee→ Formulation of the CSR System

Contribution to the Achievement of the Sustainable
Development Goals (SDGs)
In 2015, Sustainable Development Goals (SDGs) was adopted at the UN
Sustainable Development Summit. The SDGs consist of 17 global common
goals that should be achieved through the collaboration of the entire
international community by 2030. We, the Morinaga Group, are committed to achieve the SDGs goals through business activities to contribute to
the realization of a sustainable society.

STEP

In light of the international guidelines related to sustainability and social issues considered important by CSR
evaluation institutions, we grasped the external request
items to corporations, as well as sorted through strengths
and weaknesses of the Morinaga Group.
STEP

2

Conducting of stakeholder surveys(September 2017)

To understand stakeholders’ expectations and requestsof the Morinaga Group, we implemented a questionnaire
about the Morinaga Group's CSR to customers, employees,
and business partners. A total of 872 people, including 240
customers, 606 employees, and 26 business partners provided various opinions.

*1

Morinaga's strengths

Guidelines*2*3

Initiatives addressed bybenchmark corporations*4

3

Holding of interviews with internal
related divisions(December 2017)

By sorting out questionnaire results and external request
items, we interviewed CSR-related divisions to organize theinternal efforts and extract challenges. This helped clarify
the issues to address in the future, promote the disclosureof ESG information, and make the importance of fostering
the awareness of CSR within the company a shared awareness.
STEP

4

Holding dialogues with experts-Supply chain management (CSR procurement)- Respect to human rights - Risk management- Efforts toward biodiversity

Q

Social issues and challenges that the Morinaga Group should
address or is expected to contribute

60%

Food safety and security
Educating the next
generation

39%
26%
20%
19%

Compliance
Enhanced customer services

020

Food safety and security
Customers’ safety and security are
the most important elements of theagenda of the food manufacturingindustry. (Business partner)
Compliance
As long as corporations
exist in society, the minimal
requirement is to conduct
corporate activities according to rules, laws, and sensible social ethics.
(Employee in 40s)

40

60

80

100

Educating the next generation
The entire society should work on
the development of the next generation. (Customer in 50s)

Enhanced customer services
If you think corporations
can exist with the supportof customers, it is necessary
to increase communication
methods.
(Employee in 30s)

An increase in foodwaste
Food goes to waste
because people are overly
sensitive toward thebest-before date anduse-by date. We must
facilitate an understanding of such displays andthe use of food.
(Customer in 60s)

(January 2018)

We asked experts for their opinions about how the Morinaga Group should promote its CSR activities. Our board
members talked about the health and productivity management and brand strengths. Participants actively exchanged
opinions across various areas.

Decision

Morinaga’s weakness*1 ISO 26000: The International Organization for Standardization (ISO) established theinternational standards for social responsibilities in November 2010.
*2 GRI Guidelines: International guidelines for sustainability reports by corporations.
*3 FTSE4Good: One of worldwide indicators for Socially Responsible Investment (SRI).
*4 Benchmark corporations: Corporations in the same industry that engage in initiatives
that the Morinaga Group can use as a reference.

An increase in food waste

STEP- Responsibility toward customers (safety &security, health)- Environmental management inproduction bases- Local community (healthy development ofchildren )Integrated analysis

1

Analysis of matters requested byexternal institutions (August 2017)

Approval at the CSR Committee toestablish the CSR System (May 2018)

By taking into the results of initiatives from step one to fourand the details comprehensively, we translated the ideal
CSR for the Morinaga Group into the CSR Basic Principles
and the System Chart, which were officially establishedafter approval at the CSR committee.

Morinaga & Co., Ltd. CSR Report 2020

16

CSR Management

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

To resolve various social issues, the Morinaga Group is engaged in donation, sponsorshipand cooperation, and joint programs in collaboration with customers, society, governmental bodies, organizations, and other corporations that have shared values with us.

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

Social issues surrounding cocoa-producing
countries

Some of the equatorial countries producing cacao, theraw material for chocolate, have not achieved financial
independence, preventing their people from accessing
an appropriate educational environment. Education plays
a key role in helping children acquire an ability to choose
their own future and live in their own way. However, inthe world, there are some children who are subjected
to child labor and deprived of opportunities to receive
a proper education due to poverty and insufficientunderstanding about the importance of education, as
demonstrated by aged or a lack of school buildings orclassrooms, as well as the shortage of teachers and supplies that are necessary for lessons.
With the wish to bring a smile to everyone—not only
those who enjoy chocolate but also children who arelearning in the countries that are home to chocolate—in mind, Morinaga launched the One Chocolate for
One Smile project in 2008 to improve the situation incacao-producing countries.

Bring a smile to consumers, manufacturers, andeveryone—Aid activities through the One Chocolate
for One Smile campaign
The One Chocolate for One Smile project is aimed ataiding the activities to improve the educational environment for children in cacao-producing countries, using
revenues from the sale of our chocolate products subject
to the project (such as Dars). In addition to our yearround donation effort, we donate one yen per eligible
chocolate product sold during the designated months.
Since 2008, the total amount exceeded 200 million yen
in ten years.
The amount donated is used for aid activities by ouraid partners, Plan International Japan, a public interest incorporated foundation, and Action against Child
Exploitation (ACE), an authorized NPO. These activities,
which mainly target African countries such as Ghana and
Cameroon, aim to support all children so that they canreceive quality education and their homes and communities can achieve stability enough to provide education
to the children and protect their rights.

These partners also used the donation money to improve
the school and hygiene environment, provide technology
guidance to farmers, and to raise awareness of children’s
rights through education in the aid areas. These activities
helped stop child labor, thereby increasing the numberof children who can go to school.
For more details, please visit our corporate website at:https://www.morinaga.co.jp/1choco-1smile/
Total amount of
donations madeso far237,145,148 yen(From 2008 to February 14, 2020)

Framework of One Chocolate
for One Smile

17

Morinaga & Co., Ltd. CSR Report 2020

Membership in the World Cocoa
Foundation (WCF)
Morinaga supports the activities of the World Cocoa
Foundation (WCF)—which promotes various programs
aimed at providing technical guidance and educational
support for cacao farmers, as well as realizing societies
without child labor, and provide support for cacao-producing countries
through our activities as a WCF
member.

Providing technical guidance to cacao
farmers

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

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

Activities to deliver the MORI-no-Ehon
picture book

Joint Programs with Non-affiliatedCompanies through the Angel Smile
Project

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

Collaboration with Schools andOrganizations
As part of our educational courses on resolving social
issues, we present lectures at the seminars sponsoredby various organizations such as high schools, consumer
groups, NGOs, and government bodies. In 2018, members of the CSR Group in the Corporate Communication
Division gave a lecture on the One Chocolate for One
Smile project at Ritsumeikan Moriyama Senior HighSchool in Shiga Prefecture, in response to its request.
The lecture, which was delivered in an active-learning
format, provided students with an opportunity to learn
about a variety of social
issues and to consider
ways to contribute to theinternational cooperation. The students enthusiastically contributed
opinions and presented
A lecture at a school
concrete proposals.

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

environment in Rakujuen, Mishima City

Morinaga & Co., Ltd. CSR Report 2020

18

CSR Management

Stakeholder Engagement
Basic
Concept

The Morinaga Group attaches great importance to the stakeholder engagement, for which
opinions and requests are received from various stakeholders through communication withthem, and then reported to the management team so that they can utilize the feedback inthe management and corporate activities.
We communicate with our stakeholders actively and regularly,
Customers
striving to contribute to the achievement of a sustainable society.
Globalenvironment

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

Employees

Morinaga
Group
Local
community

Business
partners
Shareholders/investors

Customers
Major expectations anddemands from society• Food safety and security• Compliance (regulatory compliance)• Enhancement of customer service• Response to environmental issues
such as global warming

Major responses by
the Morinaga Group• Acceptance of various voices,
comments, and suggestions• Improvements based on opinions• Disclosure of compliance, environmental response, and other
Information

Examples of engagement andcommunication opportunities• Customer Service Center• Provision of Q&A and utilized customers’ voices on website• Official corporate account for Japanese version of Yahoo
Answers• Conducting of stakeholder surveys (FY2018/3)

Employees
Major expectations anddemands from society

Major responses by
the Morinaga Group• Formulation of human rights policies• Creation of a worker-friendly workplace environment• Promotion of diversity• Occupational health and safety

Examples of engagement andcommunication opportunities• Promotion of health management• Workstyle reform• Work style reform initiatives• Holding of various training sessions• Human resource training• Promotion of occupational healthand safety• Elimination of harassment andother inappropriate conduct• Enhancement of child-raising and nursing care support systems• Conducting of employee awareness surveys• Conducting of stakeholder surveys (FY2018/3)

Business partners
Major expectations anddemands from society• Food safety and security• Fair and impartial transactions• Consideration for human rights,
working environment, and safety

19

Morinaga & Co., Ltd. CSR Report 2020

Major responses by
the Morinaga Group• Formulation of procurement policies• Formulation of human rights policies• Development of a sustainableprocurement plan

• Strengthening of partnerships
with business partners

Examples of engagement andcommunication opportunities• Communication in raw materials’ production areas• Morinaga Group procurement policy information session forbusiness partners• Conducting of stakeholder surveys (FY2018/3)

Shareholders/investors
Major expectations anddemands from society• Maintenance and improvement ofcorporate value• Appropriate shareholder returns• Timely and appropriate information
disclosure

Major responses by
the Morinaga Group• Timely and appropriate communication• Timely disclosure of management information• Engagement between management and investors

Examples of engagement andcommunication opportunities•	Explanation of management strategy at general meeting ofshareholders and financial results briefings• Holding of IR meetings by management• Factory tours for securities analysts and institutional investors• Conducting of shareholder surveys• Enhancement of information content on the corporate IR sites(Japanese and English)

Local community
Major expectations anddemands from society• Education of next generation• Relationships with local communities

Major responses by
the Morinaga Group• Provision of food education
experiences, nature explorations,and sports experiences to children• Communication with local communities

Examples of engagement andcommunication opportunities• Visiting lectures• “Forest Kindergarten” in the Angel Forest, Iga• Exploratory expeditions• Ottotto Calisthenics• Participation in cleanup activities by local communities

Global environment
Major expectations anddemands from society• Contribution to the solution of environmental issues

Major responses by
the Morinaga Group• Revision of environmental policies• Reduction of environmental loadin business activities• Reflection of environmental
issues in business strategies

Examples of engagement andcommunication opportunities• Development of environmentally conscious products• CO2 reduction• Promotion of recycling and waste reduction• Biodiversity initiatives• Measurement of costs and effects of environmental conservation activities

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

For more details, please visit our corporate website at:https://www.morinaga.co.jp/company/english/ir/

Dialogues and Interviews with Experts
As social demands change on a daily basis, we seek opinions in a timely and appropriate manner from experts who have a wide
range of knowledge about social expectations in the areas such as CSR and ESG investment. In January 2018, we invited someexperts and our Board members actively exchanged opinions with them about how the Company should promote its CSR activities.
For further details, see the Process for Reviewing Our CSR Basic Principles and CSR System on pp. 15-16.

Morinaga & Co., Ltd. CSR Report 202020

Together with Customers
Commitment to Quality
Since Morinaga’s foundation, the Morinaga Group has consistently developed, manufactured
and sold a diverse range of products. We believe that the mission of a food company is to always
assure safety and secure quality and contribute to the healthy diet of our customers in addition
to accurately read and understand the increasingly diversified needs of customers and society,undertake research and development, and provide new value.

Basic
Concept

Quality Policy

Quality Initiatives

In realizing our vision—Delicious, Fun, and Healthy—werecognize our customers’ trust as the most precious
value, and we cherish our relationships of trust with customers.
We are aware that this trust is premised on continuing todevelop and provide customers with products, services,
and information that contribute to society, on placing
the utmost priority on creating excellent quality products, and on ensuring customer safety and well-being,
while at the same time expanding all Group company
business activities in accordance with our corporate principles and in compliance with laws and ordinances, thecorporate Code of Conduct, and internal regulations.

Delicious, Fun, and Healthy

Quality Policy
Safe and Reliable
Product Quality

Quality Policy

Satisfying
Product Quality

If a customer gives feedback about our products after
the delivery thereof, we respond to it by conducting avariety of quality investigations and analyses and reporting their results back to the customer. We share thesetypes of information within our organization to leverage
it for purposes of product development and improvement If an unexpected event occurs to our products, wewould be committed to disclosing information accurately
and promptly in order to restore our customers’ trust.
Steps and Quality Assurance System Until Our Products
Reach Our Customers

1

Product Development2

Procurement of
Raw Materials

3

Production

Satisfying
Product Quality

Customers’ viewpoint/
compliance awareness

Safe and Reliable
Product Quality

In an effort to deliver safe products to our customers,
we have established a safety-focused quality assurance
system that employs various approaches and mechanisms throughout all processes from product development to procurement, production, distribution, and sales.

…Food safety, food defense, compliance (with laws, corporate
regulations), acquiring/maintaining customers’ trust,information disclosure, etc.
…Taste, aroma, texture, surprise, inspiration, fun plan/ease ofhandling, etc.

We pursue the goal of delivering products that meet ourcustomers’ expectations, by placing the utmost priority on
excellent product quality together with safety and peaceof mind.

4 Shipping Inspection
Transportation/

5 In-storeStorage/
Management

Safe and Reliable In carrying out our operations, we put customer
 safety first.
Product Quality

Giving top priority to earing even greater trust from
customers, we disclose information as appropriate.

Satisfying
Product Quality

21

In carrying our operations, we place top priority on
having customers feel value and inspiration fromour products.

Morinaga & Co., Ltd. CSR Report 2020

Response to customers’
opinions and feedback

Qualityassessment
systemTogether with Customers

1

Product Developmentment

In designing the quality and packages/containers andmaking proper labels, we comply with food-related laws
and our internal rules set to protect the quality of products on store shelves as well as the quality and safety up
to the best-before date.
Quality assessment system
Our Quality Assessment System is designed to identify and remove risks involved in any new or renewed
products in the development phase, by reviewing andchecking them in a cross-sectional and overarchingmanner before making the decision to launch them into
the market, through the use of a checklist that covers 12
categories and approximately 180 items to check. Our
product development process involves a number of divisions, with each of them being responsible for reviewing
and confirming the product’s safety and other specifications. At the same time, our Quality Assessment System
serves as a cross-sectional tool to avoid any oversight orunchecked areas and ensure a consistent level of quality
and regulatory compliance.

2

Procurement of Raw Materials

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

3

Product inspection (measurement of the length and weight to determine
the adherence to specifications)

5

Transportation/Storage/In-store Management

To deliver safe products to our customers, we request
our business partners in the logistics chain—warehouses,
transportation companies, wholesale and retail trade—to
set rules, provide employee training, and ensure cooperation so as not to impair the quality of our products.

Analysis
The Morinaga Group is constantly engaged in the analysis and material characterization of, and the development of analytical techniques for, nutritional andfunctional ingredients, chemical substances, heavy
metals, microorganisms, food allergens, and geneticallymodified organisms (GMOs). Based on scientific andobjective evidences, we verify the safety and regulatorycompliance of, and provide warranty to, the productdevelopment, raw materials, production, logistics, products, and defective products reported by customers.

Production

All of our domestic production factories (four Morinaga
factories and three affiliated production companies) haveobtained the FSSC 22000 accreditation, an international
accreditation standard for food safety systems.
[Accredited factories] (As of June 30, 2020)
Mishima Factory, Oyama Factory, Chukyo Factory, Tsurumi
Factory, Takasaki Morinaga Co., Ltd., Morinaga Angel Dessert
Co., Ltd., and Morinaga Dessert Co., Ltd.

4Shipping Inspection

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

Measurement of food allergens (specified raw materials)

Response to Customers’ Opinions andFeedback
If a product is reported to be defective by a customer,
we immediately carry out an investigation and analysis,verify compliance with quality and regulatory requirements, and report the results to the customer. Further,
we quarterly hold a meeting of the Customer VoiceCommittee with the aim of taking customers’ opinions
and feedback into consideration in our company-wide
efforts to improve product quality, packaging, labeling,sales campaigns, advertisements, and so forth.
For further details, see Communication with Customers on pp. 25-26.

Morinaga & Co., Ltd. CSR Report 202022

Together with Customers

Commitment to Quality

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

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

Product label on the package of DARS <Milk>

Controller room

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

Camera-based recording system

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

Traceability is checked using with a bar code reader

23

Morinaga & Co., Ltd. CSR Report 2020

List of allergens

https://www.morinaga.co.jp/products/allergy/index.php

Allergen-related information (website)
Chocoball <Peanuts>

Together with Customers

Genetically Modified Raw Materials

Quality Assurance Initiatives Overseas

In principle, we do not use genetically modified materials
in our products. Soybeans and corns are treated underIdentity Preserved Handling (IP Handling) so that genetically modified raw materials are not included.

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

We use vegetable oils, emulsifiers, flavors, etc. that contain ingredients not critically separated from geneticallymodified crops. However, it is not required to list these
ingredients on product labels, as their protein component has been removed or decomposed during the production process and therefore it is technically infeasible
to determine whether the food is genetically modified ornot.

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

Human Resource Development
Since 2015, we have offered some training courses atMorinaga Techno College (MTC) as part of our Human
Resource Development Program. Participated by personnel who are expected to be a next-generation quality-control leader for their respective factories, thesecourses intend to help participants acquire and honetheir quality control techniques and ensure a stableproduct quality.

Process inspection in Morinaga America Foods, Inc.

In FY2020/3, we taught a total of 450 employees in 7
courses on production techniques, 16 courses on equipment engineering, 10 courses on management techniques, and 8 courses on special themes. We also offeredquality control courses to 254 employees.
<Quality control-related courses in FY2020/3>• Quality control on manufacturing premise• Basic knowledge of microorganisms necessary forhygiene management• Basic knowledge of food allergies: Management of
manufacturing premise• FSSC 22000 training

X-ray inspection in Morinaga America Foods, Inc.

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

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

Morinaga & Co., Ltd. CSR Report 202024

Together with Customers

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

Customer Voice Committee —Mechanism for Making
Use of Customers’ Voices—

Initiatives by the Customer Service Center
Having established the Customer Service Department asa point of direct contact with customers, we ensure to
respond to our customers in a sincere, swift, and accurate manner through such means as telephone numbers,
emails, and letters. We share customers’ opinions andrequests across the organization and make use of themfor the improvement of products and services. We havepublished frequently asked Q&A on our website to help
our customers find solutions speedily.
Breakdown of Inquiries to the Customer Service
Department (FY2020/3)

Others33%

Allergies 3%

Sales-related
26%

Breakdown ofinquiries

Criticisms 12.7%(4,593 cases)
Total
number ofcases

36,251cases

Recipe3%
Nutritional components
3%

Inquiries and opinions
87.3% (31,658 cases)

Taste/quality
3%

Usage/efficacy
8%Additives to
raw materials 7%
Campaigns 7%
Best-before date/storage
6%

Customers
Prompt, accurate andcareful response,
information provision
Improvementof products
and services

Customer Service Center
Information
sharing on
products andservices

Sharing ofcustomer
informationand issues,
submission of
proposals

Customer Voice Committee’s members• Quality Assurance Division• Production Headquarters• Marketing Headquarters• Corporate Communication Division• Logistics Division• Sales Division• R&D Center• Direct Marketing Division

Management

25

Inquiries, opinions,feedbackMorinaga & Co., Ltd. CSR Report 2020

Sharing ofcustomer
informationand issues,
submissionof proposals

Results of Customer Satisfaction Survey
Our Customer Service Department is in charge ofaddressing feedback from customers. It analyzes every
piece of feedback, investigate the cause, and report theresult to the customer who gave the feedback. With thereport, we enclose a postcard that requests the recipient
to respond to a survey, which we undertake annually toassess the level of customer satisfaction with our customer service. We use the survey results to make further
improvements to our customer service practices.
The FY2020/3 survey shows that 93.4% of our customers
are satisfied with our customer service as a whole, and93.1% want to buy our products “more than ever” or “asever.” We interpret that these favorable responses fromthose who once gave feedback regarding our products
or services are the results of our ongoing efforts to offer
sincere, prompt, and accurate service.

Together with Customers

On the other hand, we also hear critical comments andremarks from our customers. Seeing them as valuable
feedback that helps us make our services better, we will
make use of them in our efforts for the future.
Customer Satisfaction Survey
Overall satisfaction

(%)

95

Intention to repurchase

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

90

85

80

FY2017/3

FY2018/3

FY2019/3

FY2020/3

Improving Products and Services Basedon Customers’ Voices
We share our customers’ voices across the organization and make use of them to detect issues in an earlystage and create better products and services. Favorable
comments about our products are published in wall
newspapers, which are distributed monthly to individual
divisions and departments as well as branches and factories nationwide. Even when we receive critical comments,
we take them seriously and make use them to improve
our products and services. Some of the improvements
made in response to them are posted on our website.
https://morinaga-faq.dga.jp/news/faq_list.html?page=500&category=524

Fan Meetings and Communications via
SNS
We communicate with our customers directly and interactively via Angel Plus, a membership-based fan site,in addition to various social media. Customers’ candid
voices collected through these communications are not
only translated into our product development and marketing activities, but used for the development of highly-engaged Morinaga fans.

Use of easier-to-open caps (website)

Wall newspaper No. 112, published in December 2019

To facilitate communications through direct interaction,
we hold the Snacks and Treats Summit, which is participated by the members of the Angel Plus and Morinaga’s
marketing team, in 15 cities nationwide.

Participants in the Snacks and Treats Summit

Morinaga & Co., Ltd. CSR Report 202026

Together with Clients/Business Partners
Supply Chain Management
Basic
Concept

The Morinaga Group intends to contribute to the realization of a sustainable society byformulating the Morinaga Group Procurement Policy, building equitable, fair, andtransparent relationships with clients, and engaging socially and environmentallyconscious procurement activities working together with the clients/business partners.

Morinaga Group Procurement Policy
In order to realize food safety and reliability as well as asustainable society, the Morinaga Group endeavors tobuild fair and equitable relationships with our business
partners and carry out procurement activities that areconsiderate of society and the environment.
1.

2.

3.

4.

5.

6.

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

Product quality/safety assurance
Placing top priority on customers’ safety and peace ofmind, we strive to ensure product quality in carryingout our procurement activities.
Strengthening partnerships
We work together with our business partners with thecommon goals of “Customer Delight” and “Customer First,” building relationships that enable mutual
expansion.

Fair and equitable trading
Comprehensively taking into account efforts related
to product quality, prices, delivery deadlines, technological strength, and social/environmental aspects, weundertake fair and equitable trading activities.
Consideration for human rights/work environment/safety
Based on the Morinaga Group’s human rights
policies, we carry out procurement activities giving
consideration to human rights, the work environment,
and safety.

Consideration for the global environment
Based on the Morinaga Group’s environmental
policies, we carry out procurement activities aimed atrealizing a sustainable society, giving consideration to
the global environment.
(Established in May 2018)

Supply Chain Management System
In May 2018, in pursuit of sustainable procurement of
raw materials, the Morinaga Group established its procurement policy under the leadership of Morinaga & Co.,
Ltd. Based on the policy, primary responsible divisions—the Procurement Division, the Marketing Headquarters,
and the CSR Group of the Corporate Communication
Division—develop plans, set goals, and assess activities
undertaken by the Group’s member companies. In the
CSR Committee, management reviews the Group’s CSR
activities and discusses its response to individual issues
relating to such matters as palm oil and cacao.

27

Morinaga & Co., Ltd. CSR Report 2020

Promotion of Sustainable Procurementof Palm Oil
Palm oil is a type of vegetable oil obtained from oilpalms. Because of its easy-to-use nature and excellent
keeping quality, palm oil is used in various products
such as processed foods, cosmetics, and detergents.
On the other hand, palm plantation areas are facing
social challenges such as environmental and ecosystem
destruction, child labor, and other human rights issues.
As the Morinaga Group uses palm oil mainly in its soft
candy, biscuit, and frozen dessert products, it considers
the sourcing of palm oil as one of its key management
issues.
To consider this, Morinaga & Co., Ltd. undertook an
investigation in FY2020/3 on the volume of palm oil purchased and used on a product-by-product basis. Later,in October 2019, the Company joined the Roundtable on
Sustainable Palm Oil*¹ (RSPO) and the Japan Sustainable
Palm Oil Network*² (JaSPON). From FY2021/3 onwards,
we will increase the use of sustainable palm oil by shifting to the RSPO-certified palm oil and expanding, gradually, the scope of products that use the RSPO-certified
palm oil.
*1: RSPO (Roundtable on Sustainable Palm Oil): An international
certification program aimed at producing and using sustainable palm
oil taking into consideration to the environment and human rights.
*2: JaSPON (Japan Sustainable Palm Oil Network): A network mainly
consisted of Japanese firms and NGOs. It was established in April
2019 to solve various environmental and other issues arising from thepalm oil production, and to encourage procurement andconsumption of sustainable palm oil in the Japanese market(Secretariat: WWF Japan).

RSPO (Roundtable on Sustainable Palm Oil)

https://www.wwf.or.jp/activities/basicinfo/3520.html

JaSPON (Japan Sustainable Palm Oil Network)
http://rspo.jp/

Promoting Procurement ofEnvironmentally Conscious FSC®*-certified
Paper
The production of paper heavily depends on overseas
forests, as approximately 70% of wood chips, the raw
material for paper, are imported. FSC ®-certified paper isdefined as paper made from raw materials that: 1) camefrom well-managed sources; or 2) have been certified
based on the assessment of whether they were sourced

Together with Business Partners

from forests appropriately managed and logged in an
ecosystem-friendly manner to ensure environment conservation. Morinaga intends to use more FSC®-certified
paper in the future.

For more details, see Environment- friendly Packaging Materials on p. 47.
*FSC® (Forest Stewardship Council®): An international non-profit
organization that works for appropriate use and conservation of forests.

FSC® (Forest Stewardship Council®)https://jp.fsc.org/jp-jp

Promotion of Procurement of Sustainable
Cacao Beans
A wide range of social issues are involved in cacao beans,the raw material for chocolate. These issues include poor
working environment, child labor, poverty among cocoa
farmers due to lack of appropriate skills and knowledge,
and global warming (deforestation). Cacao beans are
regarded as sustainable when they can contribute to sustainable procurement by solving or supporting the resolution of social issues that are causing supply shortages.
With the aim of solving social issues facing cacao-producing areas, the Morinaga Group conducted a researchon the volume of cacao beans consumed in each product and has begun to use sustainable cacao beans certified by the Cocoa Horizons* in some products.
* Cocoa Horizons: A non-profit program designed to accomplish themission of improving the livelihood of cocoa bean producers andresidents in the area through sustainable and entrepreneurial farming,
improved productivity, and the promotion of regional development. It
is run by the Cocoa Horizons Foundation, an organization led by Barry
Callebaut, a Swiss-based manufacturer of cocoa and chocolate
products.

Cocoa Horizons

https://www.cocoahorizons.org/

Training and support for cocoa farmers by the Cocoa
Horizons Foundation

Strengthening Partnerships with
Business Partners
To achieve food safety and reliability and a sustainable
society, a trust-based cooperative relationship must be
built with business partners throughout the supply chain
from procurement to production and distribution.
In August 2019, an information exchange meeting withcooperating companies was held and participated by 58
people from 31 companies. In the meeting, we explained
the Morinaga Group Procurement Policy and asked fortheir cooperation for socially and environmentally conscious procurement activities. We will continue to informour business partners of the need to cooperate from asustainability perspective, and ask for their understanding of, and engagement in, the initiative.
Explained our
procurement policy at
an informationexchange meeting

Communication in raw material origin countries
As part of our sustainable procurement initiative, we
are working on the solution of issues related to palm oiland cacao beans with their suppliers, palm oil and cacao
bean producers.
In FY2020/3, Morinaga’s members of procurement division visited an Indonesian cacao plantation to collectinformation from, and exchange opinions with, local
cacao producers. During the visit, they not only saw how
sustainable cacao beans were produced, what sort ofefforts were made, and how the farming of seedlings was
supported, but also offered lectures on the cultivation of
cacao to local producers. As a result of these activities,
the members raised their awareness about the importance of the initiative.
Visit to Indonesia (FY2020/3)
Visit to a cacao
seedling farmer

Work training after harvesting cacao beans (drying process)Visit to a cultivationlecture class for
producers

Supporting potable water infrastructure for cocoa farmers

Morinaga & Co., Ltd. CSR Report 202028

Together with Employees
Diversity
Basic
Concept

The Morinaga Group promotes diversity as a management strategy.
Our objective in promoting diversity is to encourage employees to work enthusiasticallywhile demonstrating their individual strengths, as well as to generate innovation while
showing respect for each other and exchanging knowledge.
To this end, we are undertaking initiatives that include health management, humanresource development, and workstyle reform.

Diversity Promotion System
In April 2020, in an effort to position diversity at thecenterpiece of its management strategy, Morinaga
established the Diversity Promotion Office as a direct
report to the President. Our diversity promotion efforts
began in 2001 when the Company started its initiative
to promote women’s empowerment with a goal of creating an organization where women can demonstrate
their abilities and play an active role. Later, in FY2013/3,
Morinaga appointed the Diversity Promotion Team toaccelerate the initiative. As society increasingly considers
that maintaining a job even after a childbirth or duringchild care is a more usual option than quitting a job,roles of corporations’ diversity initiatives is shifting fromthe creation of an organization where employees canhave a long career to the creation of organization thatcan provide job satisfaction to all employees. In order topursue the happiness of each and every customer andemployee and continue to be a company recognized andselected by society, we will continue to promote activities toward the goal of leveraging each person’s individuality, engaging all of them in the activities.
Innovation

New value

Diversificationof workforce

Diversification ofknowledge

Leveraging each person’s
individuality
Various programs

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

29

Morinaga & Co., Ltd. CSR Report 2020

Telework system
In April 2017, Morinaga introduced a telework programthat covers approximately 1,000 employees. At the timeof the introduction, we made some enhancements to
our facilities and institutional arrangements, such as theuse of ICTs and the removal of the core time requirements from the flexible work arrangements. In FY2020/3,
more than 80% of eligible employees used the teleworkprogram, achieving a good balance between work andchildcare, as well as a higher efficiency through an effective use of traveling time.
In March 2020, the scope of eligible employees was
expanded to associate employees. As of May 2020,
the number of employees eligible to the program hasreached approximately 1,400.
For more details, please visit our recruitment site at:https://www.i-note.jp/morinaga/recruit/environment/workstyle.html

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

Together with Employees

Joint Diversity Promotion Activities by
Six Food Companies

Angel Family Day Initiative
The Angel Family Day, which marked the sixth time
this year (2019), is an initiative to deepen mutual
understanding between employees, by interactingwith other employees and their family members
visiting the workplace.
In FY2020/3, a total of 79 participants had a fun
day joining a workplace tour, enjoying a lunch
time at the employee cafeteria, and participating
in a foot race class at the Morinaga Training Lab.

Sharing a number of similarities in their business models,
history, and personnel issues, a group of six food companies, including Morinaga, formed a collaborative networkin an effort of promoting diversity and inclusion beyond
organizational boundaries and contributing to theimprovement of corporate value and the development of
the food industry. In the Network, they jointly organize awide range of events such as the Diversity Forum.
(The six food companies: Sapporo Holdings Limited,
Nichirei Foods Inc., Nisshin Seifun Group Inc., Morinaga& Co., Ltd., Morinaga Milk Industry Co., Ltd., and LotteCo., Ltd.)
Initially, the group focused on the promotion of active
participation of women in society. Later, they came tothe view that, in order to create a vibrant industry thatcan continue to provide new value to its customers, eachand every employee, irrespective of gender, must fully
demonstrate his or her strength. Based on the view, thegroup expanded the scope of their activities to the promotion of the spirit of diversity and inclusion.

Actual Ratio of Female Managers (Morinaga & Co., Ltd.)
April 2017
April 2018
April 2019
April 2020

5.2%
6.7%

In January 2020, a Diversity Forum entitled “SPIRAL
UP!—What is Kaisha for you?” was held at 64 satellite
venues nationwide, and participated by approximately
900 people in total.

7.7%

8.3%

Outline of Programs and Schemes/Number of Leave Days Taken (Morinaga & Co., Ltd.)
Actual Number of Leave
Days Taken (FY2020/3)

Program Title

Scheme Outline

Outpatient/morning sickness
leave

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

Prenatal and postnatal leave

A leave of 6 weeks before and 8 weeks after childbirth

26 persons (1,327 days)
92.3%

Childcare leave (female)Childcare leave (male)

22 persons (124 days)

A leave of up to 30 months

41 %(2.9 times the previous fiscal year)

26 persons

Shorter work hour system forchildcare

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

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

3 persons (8 days)

A total of up to 1 year for each family member in need of nursing care, if theLong-term nursing care leave/
short working hours for nursing long-term nursing care leave and the 4-hour short working for nursing care are
combinedcare

0 persons(As of March 2020)

Nursing care leave

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

1 person (4 days)

Angel Return Program

Former employees can rejoin the company after their resignation due tomarriage, spouse’s job transfer, child-raising, or family member’s nursing care

0 personsMorinaga & Co., Ltd. CSR Report 202030

Together with Employees

Diversity

Promotion of Employing People with
Disabilities
Under the company policy of providing a place where
each employee can demonstrate their personal qualities
and skills, we have employees with disabilities playing
an active role in a range of workplaces within the company from the Administration and Sales Divisions to the
Production Division. In the future, we will continue toproactively create employment opportunities for people
with disabilities.
Actual Number of Employees with Disabilities

Reemployment
Morinaga has introduced a retiree reemployment
system. As a general rule, all retiring employees whowish to do so are reemployed for the period until theyreach the age of eligibility for pension benefits. We havealso introduced a senior ranking system and evaluation
system in the expectation that employees will continue
to demonstrate their expertise even after retirement age,encouraging motivation and the desire to take on challenges.

(Morinaga & Co., Ltd.)FY2018/3

FY2019/3

FY2020/3

Number of employeeswith disabilities (person)

54

56

63

Rate of employees withdisabilities (%)

2.44

2.53

2.79

*Actual number of employees as of the end of each fiscal year.

Diversity—Initiatives for Health Management—

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

31

Morinaga & Co., Ltd. CSR Report 2020

Health Management Promotion Structural Chart(Morinaga & Co., Ltd.)CHO (Chief Health Officer)

President & CEO

Director for Human Resources

Health Promotion Committee
Human Resources Department,
Morinaga Health Insurance Society,
General occupational health physician(analyzing issues, formulating policies,
proposing measures)

Coordination

Management Strategy
Division
Corporate Communication
DivisionManagers of each businesslocation, factory, or division,
Health management leader,Occupational health staff

Dissemination of healthmanagement information tointernal and external parties

Sharing of issues with all employees,
implementation of measures,alignment of awareness/knowledge levels

Employees

Together with Employees

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

A Morinaga Calisthenics session in progress*Morinaga Training Lab: A training facility focused on the improvementof top athletes’ performance through training, nutrition, andconditioning programs.

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

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

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

FY2018/3

FY2019/3

FY2020/3

1.18

0.50

0.00

3.07

2.02

1.05

(1)The rate of frequency indicates the frequency of occupational
accidents, using the number of employees taking leave from work
due to work-related injuries per million actual work hours.
(2)The lost time injury frequency rate indicates the frequency ofoccupational accidents, using the number of employees who suffered
lost time injuries per million actual work hours.
*Definition of lost time injury (Morinaga & Co., Ltd.) Occupational injuries that force the injured to take a leave of absencefrom the day after the accident to receive a medical treatment and curethe injury or illness.

*Scope of frequency rate analysis
Four factories of Morinaga & Co., Ltd.

Tsurumi Factory, Oyama Factory, Mishima Factory, Chukyo Factory

Five affiliated production companies

Takasaki Morinaga Co., Ltd., Morinaga Angel Dessert Co., Ltd.,
Morinaga Dessert Co., Ltd., Morinaga Snack Foods Co., Ltd.,
Morinaga Kofu Foods Co., Ltd.

Morinaga & Co., Ltd. CSR Report 202032

Together with Employees

Diversity

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

Morinaga Group’s Ideal Employee Profile

Aimed at clearly defining individual employees’ growth
path and properly running a training PDCA cycle on site,
the Program consists of three phases: assessment, development of a training plan based thereon, and implementation of the plan. In the assessment phase, the person
subject to the training identifies his/her own strengths
and weaknesses jointly with his/her supervisor according
to the definition of capabilities required for all Morinaga
employees regardless of the job type, and develop anannual OJT- and Off-JT-based training plan. In the implementation phase, an interview session is held every quarter to review the employee’s performance and confirm
programs scheduled in the future. When these phases
are completed, a training PDCA cycle is run.

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

Human Resource Development Framework
In an effort to promote human resource development,
we support our employees’ growth by providing training
and educational opportunities according to their job
grade, division, and skill, taking into account qualifications required for an employee of Morinaga & Co., Ltd.
Moreover, to ensure effective upgrading of employee
skills, we adopted the Human Resource Development
Program—a new framework for human resource development—in FY2019/3, and are expanding the scope of
employees subject to the Program in sequence.

FY2020/3 training cost per employee (Morinaga & Co., Ltd.)

Approx. 70,000 yen

Training PDCA Cycle

A large-sized PDCA cycle that runs over a long time frame (several months to a year)

Consideration of
specific experiences

Implementation/review(reflection)[Plan]

[Do]

Do
OJT

Act

Check

Plan experienceswith aim

Do/Feedbacks
from superiors

Plan

Do
OJT

Act

Check

[Act]

Figure out
lessons learned/
level of growth

Review of the training plan

Assessment/training plan

Plan

[Check]Quarterly interview

A small-sized PDCA cyclethat runs daily

Apply to new
circumstances

Learn lessons

Human Resource Development Program Yearly Schedule
Underlying platform
Off-JT/Self-development

33

Morinaga & Co., Ltd. CSR Report 2020

Improvements
for the future

Plan

Do
OJT

Act

Check

Together with Employees

Morinaga’s Human Resource Development System
We view OJTs, Off-JTs, and self-development as the threepillars of our human resource development system.
The system is aimed at supporting the growth of ouremployees based on the career path envisioned by eachof them and helping them achieve self-actualization. In
pursuit of the aim, the system provides varied training
programs ranging from on-the-job trainings (OJTs) tojob-rank-based and other off-the-job trainings (Off-JTs)

to self-development training programs such as distancelearning and e-learning programs.
We also actively support employees’ efforts to acquire
qualifications, by providing official qualification acquisition incentives and offering a license acquisition course
as part of the self-development training (distance learning).

Off-JT and Self-development Training of Morinaga & Co., Ltd.
Key target
employees

Training
category

Mandatory Training

Self-choice Type

Training for
Select Employee

By job rank

Open Application Type

Selection Type

CommonNext-generation
managerial personnel
development program

Managerial segment
Expert segment

Training for
newly-appointed
managers

Training for
newly-appointed
appraisers

External
seminars/
video learningGroup
training

Career development
segment

Newly-appointed
S-grade Employee
Training

OJT Trainer Training

Intensive training foryounger employees

5th-year Employee
Training
3rd-year Employee
Training
2nd-year Employee
Training
New Employee
Training

Job rotation segment

Before joining
the company

Prospective Employee
Training

Self-development/
distant learning/e-learning

Basic
Management
Strategy Course
Critical Thinking
CourseBasic Business Skill
Enhancement
Program

Skill development goals
are set in a Human
Resource Development
ProgramNext-generation leader
development program

Compliance training
Stress management
training

Programs are selectedbased on the goals set.

Management gametraining

Basic Marketing
Course• Business manners• Work procedures• Basic accounting
knowledge• Logical thinking• Engagement ability,
etc.

Management skills/business skills
Function-based skills, deeper accounting knowledge, higher linguistic ability, support for acquiring qualifications

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

themselves into an autonomous person who can think
and act for himself/herself.

New employee training in session

Morinaga’s
three‑year basic
training for new
employees

Before joining
the company
Prospective Employee
Training

E-learning,
Assigned books, etc.

First Year

Learning about basics required for a Morinaga employee

New Employee Training
Basic knowledge required fora member of society
About Morinaga
Communication/OA
On-the-job sales/factory
training, etc.

Preparation period

At the end of the new employee
training

OJT
Trainer support

Experiential learning at
work
Run the cycle

Second Year

Third Year

Strengthening thinking ability to
become an autonomous person

Strengthening action-taking tobecome an autonomous person

Strengthen logical thinking

Strengthen self-management/
leadership skills

Second-year
follow-up training

Third Yearfollow-up training

Basic education period

At the end of the first year

An employee who can act in a Morinaga
way and grow by himself/herself

Knowledgeable about the Morinaga way;feeling excited to be assigned to specific units

At the end of the secondyear

An autonomous employee
who can think for himself/
herself and meet expectationsof the other party

At the end of the third year
An autonomous employee who
can think and act on his/her own

Morinaga & Co., Ltd. CSR Report 202034

Together with Employees
Diversity—Human Resource Development—

Rank-based training
We continue to provide training to employees who havecompleted the three-year basic training program to help
them further improve their skills, mindset, and behavior,according to the organizational roles they are expected
to play.
Theme-based training
Our theme-based training programs, which are focusedon management and business challenges, include thefollowing: next-generation leader training, management
game training, and educational training to improve specialized knowledge and skills required to perform duties
specific to each division.
Morinaga Recipe
Morinaga Recipe is a phrase commonly used in ourorganization to share a logical-thinking framework. The
training is provided in a group-based or class-wide discussion style, using specific case studies and participants’
own business tasks. The thinking framework is used toensure smooth communication in a diverse team while
facilitating innovation.

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

Self-development Training
We provide a wide range of programs that motivate
employees to learn more, according to individual
employees’ training themes. These free-choice programs
include distance learning, e-learning, Company-sponsored theme-based training, and external seminars
whose fees are partly paid by the Company.
Participants in the distance- and/or e-learning programs
can freely select their own courses from approximately
200 options. We have established financial assistanceprograms under which employees can receive an amountroughly equivalent to half of tuition fees, or monetary
incentives if they attend a course as a group. A number
of affiliate companies have adopted similar assistanceprograms to support their employees’ learning.

Communication with Employees
Conducting regular interviews
In an effort to listen to our employees, we hold various
interview sessions between supervisors and their subordinates every quarter. These opportunities include
quarterly accomplishment review, the Human Resource
Development Program, and career interviews.
In addition, the Human Resources Division holds aninterview with participants in the rank-based training
programs, ensuring that the Division can directly listen to
employees and share their opinions.

Scenes from Morinaga Recipe training

Labor union
The All Morinaga Labor Union, which consists of ninelabor unions—six from Morinaga Group member companies and three from Morinaga Milk Industry Group
member companies—operates under a union shop
system. All regular employees, except for managerial
or executive positions, are members of the Union. The
Union discusses various measures and is working onsuch issues as the improvement of workplace environment.
Initiative to make a better organization with good
cultureWe have continuously and regularly conductedemployee awareness survey for more than 40 years.
The survey is designed to investigate employees’ viewson the corporate climate and various measures andto identify issues to be resolved. The survey questions

35

Morinaga & Co., Ltd. CSR Report 2020

Together with Employees

include those concerning the level of satisfaction withwork, company, workplace, and supervisors, as well asother unique questions aligned with the times or circumstances, such as those asking the respondents’ degree ofunderstanding of the Medium-term Management Plan
and their awareness of regulatory revisions. The results
are shared with the management and each division’s top
executives, allowing them to use the results as importantdata for formulating management strategies and solving
issues in respective organizations.
Morinaga is characterized by high employee satisfaction
with the top management’s communication regarding
corporate vision and employees’ great pride in theirwork and the Company.

Initiatives to Facilitate Innovation
Every year, Morinaga carries out initiatives to employ thediversity of ideas produced by individual employees andgenerate innovation.
President’s Awards for Inventions and the Spirit ofChallenge and Action
Under this system, the President personally screens andhonors employees (teams) who have brought tremendous tangible benefits to the company through inventions, discoveries, or ideas, or who have demonstrated
the spirit of challenge and action in achieving goals thatwould be impossible to achieve through ordinary efforts
or ideas.

Results of the FY2020/3 Employee Awareness Survey
Morinaga &Co., Ltd.

Other
companies’
average

Overall satisfaction

3.84

3.60

Satisfaction with top
management’s communication
regarding corporate vision

3.93

3.53

I'm proud of my current job

4.01

3.67

I'm proud to be part of thecompany

4.18

3.68

The company will grow anddevelop

3.87

3.51

* A 5.0-point scale; 3.5 or higher is considered excellent.
*“Other companies’ average” refers to the average of all companies thatuse a survey similar to that of Morinaga.

Information dissemination using in-house newsletter
The Morinaga Group issues an in-house bimonthly newsletter “Morinaga Life” for its employees.
The newsletter is designed to provide employees with
important information in an easy-to-understand format
with the following three themes: 1) Dissemination ofmanagement policies; 2) Sharing of the latest information; and 3) Two-way communication.

President's Award recipients (FY2020/3)

Initiatives through new business divisions
Since FY2016/3, the Business Creation and Development Division, which is engaged in efforts to create new
business models, has recruited members through aninternal open recruitment system and implemented an
accelerator program, an initiative to launch new businesses jointly with venture companies and startups byinvesting in, supporting, and collaborating with them.
The Division is also creating a culture of pioneering spirit,by providing training sessions for employees who wish
to be involved in the creation of new businesses andby organizing lectures to learn about changes in theexternal environment and gain a heightened or broad
perspective.

Morinaga Life (May and July 2020 issues)

Morinaga & Co., Ltd. CSR Report 202036

Together with Children
Philosophy of Activities
Basic
Concept

Spanning over 120 years, Morinaga’s history has been sustained by the smiles of ourcustomers, especially children.
With gratitude in our hearts, we therefore wish to continue to carry out activities that put
even brighter smiles on the faces of children who will lead the future.

Basic principles of Morinaga’ssocial contribution activities“Aiming to nurture children’s healthy physical and mental development”
through hands-on experiences

Offering Experience-based ProgramsChildren develop by interacting with people in society
and by accumulating a broad range of experiences.
Nowadays, however, the social environment is changing
because of advances in IT and other factors, and theopportunities for children to have direct experiences are
decreasing.

1800s and early 1900s) through Western confectioneries,
Morinaga today aims to support the healthy physical andmental development of children—leaders of the future—by providing experience-based programs tailored to thedevelopmental stage and appropriate themes for eachage group from the perspectives of experience in foodeducation, nature exploration, and sports.

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

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

37

Morinaga & Co., Ltd. CSR Report 2020

Children listening to stories/participating in drama-based workshops

Together with Children

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

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

Visiting Lecture—A Caramel Lesson by
Morinaga
Employees visit elementary schools to teach a classabout the industrial production of milk caramels. The
class targets fifth graders and offers a sense of realism
as if they are on a factory tour. The class aims to teachabout the ingenious attempts and hard work of industrial
production, as well as our passion toward manufacturing.
This helps deepen their learning in textbook.
Pupils watch the video of production process andtake part in quiz and workshop to participate experience-based class.
Number of children
participated (FY2020/3)

1,760 children

Number of employees
participated (FY2020/3)

69 employees

LectureOyama Factory

Quiz session

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

Voice[Comments of employees who participated in the Caramel Lesson]

Confectioneries have the power to make people happy

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

Motoki Matsui

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

Morinaga & Co., Ltd. CSR Report 202038

Together with Children

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

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

Over two hours ofmountain climbing

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

Satisfaction level

Morinaga & Co., Ltd. CSR Report 2020

Exploratory
Expeditions

5

1

2

3

4

5

2

1
<Low>

4

3

2

Eagerness to participate
1

Eagerness to participate

39

denotes the position of
the exploratory expedition.

4

<Low>

In the exploratory expedition event, which was held forthe first time in FY2020/3, we conduct the SDGs Work inwhich children work on the SDGs through the camping
experience. Participants in the SDGs Work, an original
program developed by Morinaga, learn about the SDGs
before joining the camp, select the SDGs goals they want
to work on during the camping trip, and share the goals
with their group’s members. They also select goals to
be worked on as the group, take actions necessary toachieve the goals in cooperation with the group’s members, and carry out a review after the camp.

Group discussions on SDGs

Satisfaction level

Participating in SDGs Work in Camping
Trip (Exploratory Expeditions)To achieve the Goals, the participants made efforts voluntary and daily.
These efforts
included avoiding
food waste, eating
all the food cooked,
and ensuring recycling to reduce
garbage.

<High>

Adventurous swimming in
the Lake Saiko

The most selected SDGs goal was the “Goal 12: Responsible Consumption and Production.”<High>[Descriptions of Zones]
1)Highly active region... An extremely activated state is observed.
2)Active region...... A very activated state is observed.
3)Normal region...... A certain degree of activation is observed.
4)Improvement-required region... It is seemingly necessary to
make improvements to the program, etc.

Together with Children

Sports Experiences
Supporting Junior Athletes

Ottotto Calisthenics

We annually hold a nutrition seminar and an exercise
event designed to improve athletic competency forathletes—elementary school pupils and junior to highschool students who belong to the “AEON Bike Jr. Academy,” a project jointly led by professional mountain bikeathletes and AEON Bike Co., Ltd.—and their parents.

Morinaga Training Lab, which is mainly in charge ofproviding training guidance and nutritional support toathletes, devised the Ottotto Calisthenics in collaboration
with Yokohama Sport Association, in the aim of promoting, as much as possible, children’s healthy growththrough exercise and diet.

After a demonstration by professional mountain bikers,
trainers and nutritionists from Morinaga Training Lab(see p. 32) provide training lessons in which participants
are required to do physical activities, as well as lectureson the hydration and recovery and on nutrients necessary for children in their growth phases.

The Calisthenics was devised in the expectation thatvarious forms of body movements, such as jumping,rolling, and standing on one leg, will promote the development of athletic ability in early childhood, thereby
reducing injuries caused by falls. In the Calisthenics, weincorporated the image of the sea friends, the characters appearing in our Ottotto snack, so that children canenjoy the exercise.
Ottotto Calisthenics
educational videos

Exercise to improve
athletic competency(FY2020/3)

A lecture on the nutrientsrequired in the growthphase (FY2020/3)

Voice[Comment by the partner of the industry-academia joint researchon the exploratory expedition program]

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

Shin-ichi Komori

Associate Professor,
Advisor to the President
Tokyo Gakugei University

Morinaga & Co., Ltd. CSR Report 202040

Environmental Initiatives
Environmental Management
Basic
Concept

Through our business activities, the Morinaga Group promotes the creation of a sustainablecircular economy.
We are also continually improving our environmental management system, implementing
environmentally conscious initiatives in various aspects of our business activities.

Morinaga Group Environmental Policy
Through our business activities, the Morinaga Group promotes the creation of a sustainable circular economy.
We are also continually improving our environmental management system, implementing environmentally conscious
initiatives in various aspects of our business activities.
1. Compliance with environment-related laws,
ordinances, and regulations, etc.
We will comply with domestic and international
environment-related laws, ordinances, and regulations,
adhering to international standards and norms.
2. Reduction of environmental load in all productrelated processes
From the product planning and development throughto production, sales, and disposal, we will consider
and strive to reduce environmental load in all productrelated processes.

3. Reduction of CO₂ and other greenhouse gas emissions
We will implement carbon management throughmeasures such as the promotion of energy-saving
and visualization of energy consumption amounts,
endeavoring to reduce CO₂ and other greenhouse gas
emissions and prevent global warming.
4. Promotion of resource saving, waste reduction, andrecycling
We will strive to use water resources, raw materials
effectively, endeavoring to both reduce waste
generation amounts and promote recycling.

• In July 1998, our Oyama Factory acquired the ISO 14001
certification for the first time in the Japanese confectionery
industry.
• Later, all factories and affiliated production companies
acquired the accreditation in sequence.

Multi-site Organization Chart
Top management
Production Division
Production General Manager
Internal auditors

Secretariat

The Morinaga Group plans, sets goals, and reviews
important environmental policies at its CSR Committee,
which is chaired by the President. The Environment Integration Office was established with members from theProduction Supervising Division and the Corporate Communication Division to exchange information with the
Factory Environment Management Committee and otherorgans, as well as to promote continuous improvements
to our management system and to reduce the environmental load and increase productivity.

41

Morinaga & Co., Ltd. CSR Report 2020

Morinaga
Snack Foods Co., Ltd.

(As of April 2019)(Revised in May 2018)

Environmental Management System

Morinaga
Dessert Co., Ltd.

Morinaga
Angel Dessert Co., Ltd.

Takasaki Factory

Chukyo Factory

Mishima FactoryOyama Factory

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

In FY2020/3, we received five inquiries and complaints
from neighbors regarding odors, noise, etc. from our factories. We responded promptly to these issues and took
remedial measures.

Tsurumi Factory

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

We have built an environmental management systemcentered on the ISO 14001 (international standard forenvironmental management system). In January 2018,
the Morinaga Group Production Division obtained multiple site certification.

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

CO2 Emissions

Waste Emissions

Reduce CO2 emissions from our

Reduce waste emissions fromto the FY2006/3 level by thecompared to the FY2006/3

factories by15%

end of FY2021/3.

compared

our factories by

25%level by the end of FY2021/3.

Environmental Initiatives

Even after the achievement of our CO₂ emission reduction goal in FY2015/3, we are continuously working on
the emission reduction activities.
Our waste emission levels remained below set goals forthe period from FY2010/3 through FY2012/3; however,since FY2013/3, the emissions have been on an upward
trajectory, driving us to accelerate our efforts to achieve
the goals again.
For the actual results in FY2020/3, see pp. 44-46.

In addition, the Morinaga Group is continuing discussions towards the formulation of environmental targets
for FY2031/3.
Acquired multi-site ISO 14001 certification
Previously, each production sites acquired the ISO 14001:
2004 certification individually. Simultaneously with thetransfer to a new standard ISO 14001: 2015, the Morinaga Group Production Division including the Headquarters Environment Integration Office has obtained
the multiple site certification on January 23, 2018, using
the multiple-site method integrating multiple sites as
one organization. For your information, Morinaga Snack
Foods Co., Ltd., which discontinued its production in
August 2019 and then was merged into Morinaga & Co.,
Ltd., was removed from the registration scope when we
made revisions to the registration on January 23, 2020.
List of ISO 14001-accredited Facilities (As of April 2019)
Name of Accredited Production
First Registration
Location
Sites
Date
Oyama Factory, Morinaga & Co., Ltd.

Tochigi
Prefecture

July 7, 1998

Chukyo Factory, Morinaga & Co., Ltd.

Aichi
Prefecture

March 15, 2000

Mishima Factory, Morinaga & Co., Ltd.

ShizuokaPrefecture

March 16, 2000

Tsurumi Factory, Morinaga & Co., Ltd.

Kanagawa
Prefecture

July 26, 2000

Morinaga Snack Foods Co., Ltd.

Chiba
Prefecture

February 20, 2001

Morinaga Angel Dessert Co., Ltd.,

Kanagawa
Prefecture

March 20, 2001

Morinaga Dessert Co., Ltd.,

Saga
Prefecture

March 20, 2001

Takasaki Morinaga & Co., Ltd.

Gunma
Prefecture

December 21, 2018

Environmental Education and AwarenessIn an effort to implement environmentally-conscious
initiatives in all aspects of our corporate activities, weensure to raise our employees’ environmental awarenesswhile promoting environmental education and enlightenment. Furthermore, we annually hold an Internal
Environmental Auditor Training Seminar to train eachproduction sites internal environmental auditors andupgrade their skills. In FY2020/3, 36 people attended thecourse, and the total number of participants under the
ISO 14001: 2015 standard reached 143.

Internal environmental auditor training seminar

Internal Audit/External Inspection
In order not only to assess the conformity and effectiveness of our environmental management system but also
to improve its efficiency, we undertake an internal audit
by our employees and undergo an external inspection
by an independent inspection body on an annual basis.
In FY2020/3, we audited four business locations throughjoint internal audits by the Environment Integration
Office and internal auditors from accredited factories. In
addition to the regulatory compliance and the system’s
operating effectiveness, these audits focused on the
improvements in environmental performance and thesystem efficiency. In an internal audit, those who havecompleted the Internal Environmental Auditor Training
Seminar serve as auditors and verify whether the system:1) conforms to the requirements of the ISO 14001: 2015
standard; and 2) is effectively implemented and maintained.
We also undergo an external inspection by an independent body to maintain a system that conforms torequirements of the ISO 14001: 2015 standard.

Percentage of ISO 14001-accredited production sites

Morinaga & Co., Ltd. … 4/4 factories

100%

Affiliated production companies…4 companies(As of April 2019)
ISO 14001 external inspection

Morinaga & Co., Ltd. CSR Report 202042

Environmental Initiatives

Environmental Load Generated by Business Activities
In the course of business activities, a wide range of environmental loads are caused mainlyin the product manufacturing process, including such occasions as consuming energy, rawmaterials and emitting wastes.
We will continue to carry out environmentally-friendly manufacturing, taking each andevery environmental load into consideration.

Basic
Concept

INPUT(Resources and energy used inbusiness activities)

Raw materials
Primary raw materials

41,342t

Secondary raw materials

49,883 tMorinaga Group’sbusiness activities

OUTPUT(Wastes and emissions generated
by business activities)

Production

Emissions into the air

Morinaga’s 4 factories and 5 affiliatedproduction companies

CO 2

57,048 t-CO

Procurementof raw materials

2

Nitrogen oxide (NOx)36t

Sulfur oxide (SOx)0t
EnergyDischarge into waterPreparation

Fuels(Crude oil equivalent)

35,505 kl

Treated wastewater

1,341,000 m

3(Electricity)

99,392,000 kWh

Water

1,538,000 m

3

WastesProcessing

Amount emitted

9,556 tPackaging materials

Recycling volume9,553 tPaper

14,175t
Cardboard

8,004 tRecycling rate

99.97%

PackagingAmount landfill volume

3t

Plastics

4,648 tCO₂ emitted during wastetransportation

72 t-CO

Glass

2

0t

Steel

0t

Aluminum

1,091 tProducts

Fuels

Planning/Research
Logistics/Sales

CO 2

19,512 t-CO

2

Others133 t122,087t

Consumption

Environmental accounting is disclosed on the corporate website of Morinaga & Co., Ltd.

43

Morinaga & Co., Ltd. CSR Report 2020

Containers
Packages, etc.

Environmental Initiatives

Realization of a Low-carbon Society
By implementing carbon management measures such as promoting energy-saving andvisualizing energy use, as well as reducing emissions of CO₂, the main greenhouse gas,Morinaga aims to realize a low-carbon society and is making efforts towards preventing
global warming.

Basic
Concept

Goal

Reduce CO2 emissions from our factories by 15% compared to the FY2006/3 level by the end of FY2021/3.

Initiatives to Reduce CO2 Emissions
We are working on the reduction of CO₂ emissions bymeasuring overall amount of emissions and promoting
the visualization thereof. We set environmental goals andpromote initiatives focusing on activities at factories, as
CO₂ emissions are largely (75% of overall CO₂ emissions)generated by Morinaga’s four factories and five affiliatedproduction companies.

Changes in the Amount of CO2 Emissions from Factories
and Energy Consumption Rate per Production Unit

80,000

Headquarters/R&D Center

40,000Total

076,632

1%

t-CO2

Transportation/
sales vehicles

Factories

21%

75%

Results in FY2020/3 (Domestic production facilities)
In FY2020/3, the amount of CO₂ emitted from Morinaga’s four factories and five affiliated production companies was 57,048 t-CO₂, and the energy consumption
rate per production unit was 0.467 t-CO₂. This showsthat we reduced our CO₂ emissions by 19.5% comparedto the FY2006/3 level. Compared to the FY2019/3 level,
the emission amount was cut by 1.9%, and the energy
consumption rate per production unit was reduced by
1.7%. Our CO₂ reduction efforts focus on the promotionof energy saving through the installation of energy saving-type equipment, etc. The amount of CO₂ emitted
from over overseas production facilities in 2019 was
9,137 t-CO₂.
CO2 Emissions (Total amount)
Goal

-15%

0.539

0.513

0.502

0.6

0.480

0.475

0.467
0.4

70,82655,32957,02356,745

58,133 57,048
0.2

20,000

Sales offices(vs. FY2006/3)

t-CO2/tt-CO2

60,000End of FY2021/3

Energy consumption rate
per production unit (t-CO 2/t)
0.8

100,000

Ratio of CO2 Emissions

3%

Emissions (t-CO2)

120,000

Results
FY2018/3-19.9%(vs. FY2006/3)

Energy consumption rate
per production unit
(FY2020/3)-1.7% (year on year)

FY2019/3-17.9%(vs. FY2006/3)

FY2020/3-19.5%(vs. FY2006/3)

2005

2015

2016

2017

2018

2019

0.0

Initiatives on CFC-using facilities
We are currently examining the possibility of replacing
CFC-using facilities with those using HCFCs and HFCs,
with a low ozone depletion potential, or natural refrigerants. We intend to replace, in a planned manner, equipment and devices that use CFC R-22 with those using a
low-global-warming-potential refrigerant. We have also
implemented stricter measures to prevent leakage of
CFC gas from existing facilities.
Morinaga Angel Dessert and Morinaga Dessert, whose
product lines include frozen desserts, are proceedingwith the replacement of refrigerant-equipments in theirlarge-sized refrigerators with natural refrigerants that has
zero ozone-depletion potential and low climate-change
coefficient.
Reducing environmental load during storage andtransportation
In an effort to load as many products as possible on apallet, a platform used for product storage and transportation, we have adjusted dimensions of cardboard cases
and apply our efficient stacking pattern for loading cases
onto the pallets. Furthermore, we save the use of energy
in the storage and transportation processes by designing
our products to minimize the wasted space.

CO2 emissions fromoverseas production
bases (2019)

9,137t-CO

2

Morinaga & Co., Ltd. CSR Report 2020

44

Environmental Initiatives

Realization of a Low-carbon Society

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

Examples of Energy-saving Initiatives
Consolidation and rationalization of air compressors
At our Oyama Factory, a three-year equipment work isunderway to consolidate and rationalize air compressors. As part of the work, the Factory visualized its useof compressed air, reviewed its operation control andsupply routes, updated former air compressors to highly
efficient ones, centralized the control of air compressors,
and achieved an appropriate operation control thereof.
As a result, the Factory’s energy consumption rate has
been improved significantly.

Oyama Factory: Consolidation and rationalization of air compressors

Thermal barrier coating on product warehouse roofs
Our Tsurumi Factory reduced its air conditioners’ loads
and energy consumption by applying thermal barrier coating to the roof of its product warehouses andthereby suppressing a rise in the temperature inside thewarehouses caused by the direct sunlight.

Takasaki Morinaga’s Third Factory

Facilitating energy conservation promotion activities
The Morinaga Group has continuously been engaged in
the activities to promote energy conservation. In order tomake as much contributions as possible to the preventionof global warming, an international environmental issue,
we are focusing on the facilitation of energy conservation
promotion activities at our production sites, as most of
our energy consumption is attributable to these facilities.
We have so far implemented such measures as: conducing energy-saving patrols to prevent overlooking ofcompressed-air or steam leakage from pipes and failuresto switch off the lights; replacement of aged equipmentwith highly efficient one; switching to LED lighting; andensuring the optimal electricity consumption by installinginverters on pumps and fans with a power of 7.5 kW orabove to respond to changes in equipment loads.
In FY2020/3, we accelerated our efforts in factories
to switch to LED lighting. This resulted in a significant
increase in the ratio of LED lights.
We intend to facilitate our energy consumption promotion activities further, by seeking advice from energy
conservation consultants, energy management companies, and equipment manufacturers, and planning andimplementing energy conservation measures based on
their advice.

45

Morinaga & Co., Ltd. CSR Report 2020

Tsurumi Factory: Thermal barrier-coated product warehouse roof

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

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

Environmental Initiatives

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

Basic
Concept

Goal

Reduce waste emissions from our factories by 25% compared to the FY2006/3 level by the end of FY2021/3.

Initiatives to Reduce Waste Emissions
We are committed to reducing waste emissions bycontinuously undertaking productivity improvement
activities and improving our mainstream work processes
through, for example, the reduction of process losses.
Results in FY2020/3 (Factories)
Waste emissions from Morinaga’s four factories andfive affiliated production companies were 9,556 tons, a
reduction of 19.8% from the FY2006/3 level and 1.6%
from the FY2019/3 level. The energy consumption rate
per production unit decreased by 0.078 t/t or 1.5% year
on year. Along with the results of our continuous productivity improvement activities, improvements in our
mainstream work processes, such as the reduction ofprocess losses, have produced an additional effect of
reducing the generation of animal and plant residues.
In 2019, the amount of wastes emitted from our overseas production bases was 616 tons. We will continue tostrengthen our activities to reduce waste emissions.
Waste Emissions from Factories (Total amount)
Goal

Results

End of FY2021/3

FY2018/3

FY2019/3

FY2020/3-25%-17.4%-17.9%-19.8%(vs. FY2006/3)(vs. FY2006/3)

Energy consumption rate
per production unit
(FY2020/3)-1.5% (year on year)(vs. FY2006/3)

Food waste recycling rate

Waste emissions fromoverseas production
bases (2019)

616 t

Initiatives to improve recycling rates
All Morinaga Group factories are working on the
improvement of recycling rates. In the aggregate, Morinaga’s four factories and five affiliated production companies recycled 99.97% of their emissions in FY2020/3.
Going forward, we will continue to ensure an effective
use of resources through proper waste classification andpromote efforts to convert them into value-added materials.
Waste recycling rate

99.97%

75.4%

Results in FY2020/3

Waste Classification and Management
Morinaga’s four factories and five affiliated production
companies are working on the waste classification andmanagement to ensure an effective use of resources.
Results in FY2020/3(Morinaga’s four factories and five production affiliates)

FY2019/3

FY2020/3

Emissions (t) Emissions (t) Composition (%) YoY variance (t)(vs. FY2006/3)

Promotion of Waste Recycling

Results in FY2020/3

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

Sludge

1,717

1,619

16.94

-98

Waste oil

10

6

0.06

-4

Waste plastics

546

642

6.72

96

Paper scraps

2,020

2,073

21.69

53

15

11

0.12

-4

4,925

4,739

49.59

-186

Metal scraps

422

390

4.08

-32

1

1

0.01

0

Others

60

75

0.79

15

Total

9,716

9,556

100.00-160

Recycling volume

9,712

9,553

Wood chips, fiber
scraps, rubber scraps
Animal and plant
residues
Glass/ceramic
scrapsRecycling rate: 99.97%

Effective Use of Water Resources
The Morinaga Group is committed to the effective useof water resources. We are working on the reductionof water consumption by recycling equipment coolingwater and decreasing losses of raw materials, including
preparation water.
For more details, see ESG Data on p. 56.

Morinaga & Co., Ltd. CSR Report 2020

46

Environmental Initiatives

Environmentally-friendly Packaging Materials
Basic
Concept

Owing to the variety and wideness of its product range, the Morinaga Group uses packaging
materials made of diversified materials. It also uses packing materials for the storage andtransportation purposes.
We are promoting environmentally conscious initiatives for packaging materials that involve
multifaceted issues such as plastic issues, deforestation, and climate change.

Initiatives for Environmentally-friendly
Packaging Materials
In FY2020/3, Morinaga identified the amount of packaging materials used by the Company and establisheda plan for reducing the amount of major packaging
materials such as paper (incl. paper boxes), plastics (incl.
plastic films), and cardboard (incl. cardboard boxes andcases). In the future, we will further promote: the reduction of use of fossil resource-based plastics; the shift to
FSC®-certified paper sourced from well-managed forests and other controlled sources; and the shift to packaging materials with lower emissions.

Reduction of plastics used in/use of biomass ink for“in Jelly” brand’s packages
In February 2020, we reduced the amount of plastics
used in the “in Jelly” brand’s packages by saving theweight of plastic cap and straw by approximately 9%(approximately 70 tons per year) compared to theconventional level. In addition, we partly replaced theprinting ink used in the product with plant-derived,
environmentally-friendly biomass ink. At the same time,
we adopted easier-to-open caps to improve customer
convenience.
ＮＥＷＳ ＲＥＬＥＡＳＥ

Promotion of shift to FSC -certified paper for coreproducts’ packaging materials
We replaced packaging materials for some Morinaga
Chocolate products (DARS and Carre de chocolat) andthe Morinaga Biscuits series (including Marie Biscuits)
with those made of FSC®-sourced paper. We intend
to promote the shift to the FSC®-certified paper andexpand the scope of its use toother products in sequence.

東京都港区芝  〒 

KWWSVZZZPRULQDJDFRMS

®

 年  月  日

「ｉｎゼリー」 
プラスチック使用量削減 バイオマスインキ使用開始
～環境負荷低減活動を推進～
森永製菓株式会社（東京都港区芝 代表取締役社長・太田 栄二郎）は、年月製造より当社主力商品である「ｉｎゼリー」の包装におけるプラスチック使用量を削減し、年月製造よりバイオマスインキの使用を開始いたします。
森永製菓グループは「森永製菓グループ環境方針」に基づき、企業活動のあらゆる面で環境に配慮した取り組みを行い、持続可能なサプライチェーンの形成を目指しています。
環境に配慮した取り組みの一環として、年月製造より「ｉｎゼリー」の品※１を対象にキャップ＋ストロー部分のプラス
チックを軽量化することで、使用量を約削減します。また、年月製造より順次、「ｉｎゼリー」全品を対象に、印刷に使用しているインキの一部をバイオマスインキ※２に変更いたします。さらに、プラスチック使用量削減と同時に、これまでよりもキャッ
プを開けやすくし、利便性の向上も図りました。












①キャップ＋ストロー部分

※さらに！キャップが開けやすく

プラスチック使用量約 ％削減

お客様の使いやすさを考え、キャップを開けることが、より少ない回転で可能になり 年  月製造～

ました。


②印刷の一部で、

バイオマスインキ使用 年  月製造～
森永製菓グループでは「おいしく、たのしく、すこやかに」というビジョンのもと、「食」を通じて社会課題の解決と持続可能な社会の実現を目指し、ステークホルダーと連携・協働して、&65活動に取り組んでいます。また今後も、「森永製菓グループ環境方針」に基づき、持続可能な循環型社会の形成を推進してまいります。※１ エネルギー、マルチビタミン（一部除く）、プロテイン、マルチミネラル、マルチビタミンカロリーゼロ、エネルギーストロング の  品※２ バイオマスインキとは原料の一部に被子植物の種から抽出した生物由来成分を使用したインキですUse of biomass plastics in the Milk Cocoa Stick Typeproduct series
Since 2013, we have used plant-derived plastics in partof stick packs of the Milk Cocoa Stick Type productseries. This enabled us to reduce greenhouse gas emissions by approximately 1.1 tons a year over the entire
life cycle, compared to cases where petroleum-derived
materials are used.

Replacement of core products’conventional paper packages withthose using FSC®-certified paper

47

Morinaga & Co., Ltd. CSR Report 2020

Environmental Initiatives

Initiatives to Resolve Environmental Pollutants
Basic
Concept

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

Management of Environmental Pollutants
and Promotion of their Reduction
Initiatives to reduce air pollutant emissions
In order to promote the reduction of NOx and CO₂, wehave replaced all boilers in our factories with those thatuse city gas as fuel. We also request our business partners to stop idling their vehicles in our factory premises.
Furthermore, as a result of our efforts to reduce the environmental impact of commercial vehicles, the percentage of low-emission vehicles in Morinaga’s commercial
vehicles reached 99.4% as of the end of FY2020/3.
Initiatives to prevent water pollution
We have established voluntary standards that govern the
management and operation of all wastewater treatment
facilities in our factories. We also use a checklist to monitor their performance regularly. Moreover, we implement
measures to strengthen both tangible and intangible

resources. Measures for the former include the reviewing of the Operation Management Procedures Manualon an as-needed basis and the provision of employee
education and training; measures for the latter include
equipment maintenance and investments in the renewal
or improvement of facilities.
Management of chemical substances
Our factories promote safe and proper management ofchemical substances and reduction of their emissions
according to the ISO 14001 management system. In
particular, we ensure strict management of chemical
substances by establishing and abiding by the Chemical
Substance Management Manual in accordance with the“Act on Confirmation, etc. of Release Amounts of SpecificChemical Substances in the Environment and Promotionof Improvements to the Management Thereof” (the PRTR
Act).

Initiatives for Biodiversity
Basic
Concept

For the realization of a sustainable society, we ensure the conservation of biodiversity andthe protection of ecosystems.

Biodiversity Conservation Initiatives
Formulation of Morinaga Group Procurement Policy
In accordance with the Morinaga Group Procurement
Policy, we are committed to the conservation of biodiversity and engaged in our procurement activities
focusing on the raw materials that are considerate of the
global environment.
Membership in RSPOIn October 2019, Morinaga & Co., Ltd. joined the Roundtable on Sustainable Palm Oil (RSPO) and took the firststeps towards the use of RSPO-certified oils.
Use of FSC®-certified paper
We aim to promote the shift to FSC®-certified paper
sourced from well-managed forests and other sourcesand expand the scope of its use in sequence.

Sustainable cacao beans
We have started using Cocoa Horizons-certified raw
materials in certain products
For more details, see Supply Chain Management on pp. 27-28.

Nature Exploration in the Iga Angel Forest
The Morinaga Group believes that children’s explorationin the nature will lead to the conservation of biodiversity by the next generation. Based on this belief, since2007, we have been engaged in activities designed tohelp children understand the importance of the environmental conservation. These activities are undertaken incollaboration with an NPO specialized in environmental
education in the company-owned Iga Angel Forest in
Mie Prefecture.
Forest Kindergarten
program (FY2020/3)

Morinaga & Co., Ltd. CSR Report 2020

48

GovernanceCorporate GovernanceCorporate Governance Basic Policy
The Morinaga Group will enhance its corporate governance with the aim of maximizing corporate value andachieving enduring corporate growth based on the basic
policies of improving the health and efficiency of management, ensuring the reliability of its financial position,
providing timely and appropriate disclosure of information, complying with laws and regulations, and strengthening the trust and relationships with all stakeholders.
(1) Positioning of Stakeholders
To enable us to fulfill our social responsibility in all areasof our business activities, we are committed to maintaining and further developing strong relationships withall stakeholders, who sustain our company, and achieving coexistence with society and sustainable growth inaccordance with corporate principles and the code of
conduct.
(2) Management Monitoring Functions
We are committed to building an effective internal control system by strengthening the management monitoring functions of the Board of Directors, appointing
outside Directors and Statutory Auditors, requiring
attendance by Standing Statutory Auditors at important
meetings, and placing the Audit Division under the directcontrol of the President.
(3) Consistency in Thinking within the Entire Group
While respecting the independence of our subsidiaries,
we endeavor to maintain close ties amongst the Group’s
member companies.

Corporate Governance System
Management of Corporate Affairs
Morinaga’s “Rules on Decision-Making Criteria” statesclear definitions of authority and responsibility for
respective decision-making units, including the Board of
Directors, Management Meetings, Directors, Executive

Officers, and General Managers of individual divisions
and departments.
<Board of Directors>
The Board of Directors deliberately makes decisions
on statutory matters and the execution of importantbusiness based on the business judgment principle andsupervises the execution of business. The Board consistsof ten Directors, out of which three are Outside Directors, seven are male, and three are female Directors.
Diversity of Directors (As of June 26, 2020)<Executive Officer System>
With the aim of increasing the agility to respond to thechanging business environment and accelerating thedecision-making process, Morinaga has adopted an
executive officer system. With this move, the Company
delegated authority and responsibility for executing regular business relating to the implementation of strategies
to Executive Officers, ensuring efficient management anda clarification of responsibilities for business execution.

Audit Division
Immediate supervisor:
Instruction/supervision

Reporting

Cooperation

Board ofAuditors

comprises 4
Statutory Auditors(of which 3 areoutsideStatutory Auditors)

Individual

divisions/
Instruction/
Management supervision departments
Partial delegationof authority

Representative
Director

Internal audit

Internal
audit

Instruction/
supervision

Cooperation

Audit

Audit

comprises 10 Directors(of which 3 are
Outside Directors)

Appointment/
dismissal/
supervision(3 out of 10)

Cooperation

ReportingAppointment/dismissal

Appointment/dismissal

Board of Directors(3 out of 10)

Accounting Auditor
ReportingGeneral meetingof shareholders

30%

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

Corporate Governance System
Appointment/
dismissal

30%

Ratio offemaleDirectors

Appointment/dismissal
ReportingInstruction/
supervision

Affiliatedcompanies

Meetings

Officer Appointment andRemuneration Committee

Corporate Branding
Committee

Total Risk Management
Committee

IR Committee

Compliance Committee

CSR Committee
Customer Relations
Committee(As of June 26, 2020)

49

Morinaga & Co., Ltd. CSR Report 2020

Governance

List of Directors (As of June 26, 2020)
Name

Attribute

Title

Representative
Director andPresident
Director
Managing
Executive Officer
Director
Senior Executive
Officer
Director
Senior Executive
Officer
Director
Senior Executive
Officer
Director
Senior Executive
Officer
Director
Senior Executive
Officer

Eijiro Ota
Machiko Miyai
Takashi Hirakue
Shinichi Uchiyama
Toshiyuki Sakai
Shinya Mori
Daisuke Fujii

FY2020/3 Board
Meeting
Attendance

100%(16/16 times)
100%(16/16 times)
100%(16/16 times)
100%(16/16 times)
100%(16/16 times)
100%(11/11 times)
100%(11/11 times)

Shiho Takano

OutsideIndependent

Director

100%(16/16 times)

Naomi Eto

OutsideIndependent

Director

Newly
appointed

Shuichi Hoshi

OutsideIndependent

Director

Newly
appointed

CSR Issues Discussed at the Board of Directors
In FY2020/3, the Board of Directors discussed the following matters related to CSR:-	Donation to typhoon relief	 The Board decided to donate 10 million yen to theareas hit by Typhoon Faxai and Typhoon Hagibis in2019 via the Japanese Red Cross Society.

- Risk management
	 Implementation of risk management and challenges in
FY2019/3; activity plan for the current year
- Compliance	 Compliance efforts and challenges in FY2019/3; activity
plan for the current year
- Customers’ voice and feedback	 The Board discussed response to customers’ opinions
and requests and associated issues- Assessment of the Board’s effectiveness	 The Board discussed whether it was functioning effectively based on third-party assessments and agreed on
the issues towards improvement.
- Internal Control
The Board confirmed the effectiveness of internal control and approved the internal control report.

Auditing System
We have four Statutory Auditors, including three Outside
Statutory Auditors. One of these three Outside Statutory
Auditors is a Standing Statutory Auditor, and all of thefour Statutory Auditors are male. In accordance with
the Guidelines for Auditors, Statutory Auditors audit the
Directors’ performance of their duties based on the Rules
on Statutory Auditors’ Audit. Standing Statutory Auditors
hold regular meetings with the Representative Director
and attend management meetings of the Board of Directors and other important gatherings to audit the Directors’ performance of their duties. Audit Division, whichis responsible for carrying out internal audit, directly
reports to the President. Composed of five members,
the Division audits all divisions (including subsidiaries)
in a planned manner, and exchanges opinions with thedivisions jointly with Standing Statutory Auditors. To
ensure close cooperation, opinion exchange sessions areheld regularly and as needed basis between all Statutory
Auditors and the Accounting Auditor, as well as between
Standing Statutory Auditors and the General Managerof the Audit Division. The General Manager of the Audit
Division and the Standing Statutory Auditors attend themeetings of the Internal Control Steering Committee,
which is composed of members selected from major
divisions and departments, and exchange opinions with
the Committee members on a regular basis. Morinaga
appointed Deloitte Touche Tohmatsu LLC as its accounting auditor.
List of Statutory Auditors (As of June 26, 2020)
Name

Attribute

FY2020/3 Board ofAuditors Attendance

FY2020/3 Board
Meeting
Attendance

Tadashi Nishimiya

Standing

100%(21/21 times)

100%(16/16 times)

Akiyuki Igarashi

OutsideStanding

100%(15/15 times)

100%(11/11 times)

Koichi Sakaguchi

Outside100%(21/21 times)

100%(16/16 times)

Hiroshi Iwamoto

Outside100%(15/15 times)

100%(11/11 times)

Basic Policy and Structure of Executive
Remuneration System(1) Basic Policy
Our Executive Remuneration Basic Policy stipulates that
the Company shall establish and operate a system thatprioritizes the strengthening of executives’ motivation
for contributing to the enhancement of corporate value
over the medium- to long-term and the achievementof sustainable growth, while discouraging excessiverisk-taking. We are determined to continue pursuing abetter remuneration system, ensuring the objectivity andtransparency of the remuneration determination process
and taking into account regulatory revisions and social
trends in the future.
(2) Structure and Content of Remunerations
Under our executive remuneration system, a standard
amount of total remuneration has been set for each title.
To ensure competitiveness in the market, the standard
amount is determined referring to the levels of executive
remuneration paid by leading companies that are similarin size to Morinaga.

Morinaga & Co., Ltd. CSR Report 202050

GovernanceCorporate Governance

The standard amount of total remuneration for Executive
Directors consists of fixed remuneration and performance-based remuneration.
Further, excluding non-residents in Japan, 10% of thetotal remuneration is paid in stock for the purpose ofclarifying the linkage with the Company’s stock value
and motivating them to make contributions to an
improvement of medium- to long-term performanceand corporate value. Considering their need to keep
independence from management, Outside Directors
and Outside Statutory Auditors only receive fixed remuneration, and excluded from the payment of performance-based remuneration.
The following shows the basic ratio of fixed and performance-based remunerations by title:
Fixed remuneration(%)

Performance-based
remuneration (%)

Directors (excluding Outside
Directors)

70

30

Outside Directors

1000Statutory Auditors

100

0

Title

Assessment of the Board’s effectiveness(1) Method of Analysis and Assessment
To analyze and assess the effectiveness of the Board of
Directors as a whole, the Company conducted, during
the period from February through March 2020, a survey
and interviews of all (including Outside) Directors andStatutory Auditors regarding: 1) the composition, operation, and agendas of the Board; 2) appointment of, andremuneration for, management team members; 3) risk
management; 4) dialogues with shareholders; 5) systems
supporting the Board; and 6) matters pointed out in thepast Board meetings. Based on the results, an opinion
exchange session was held at a Board meeting and aself-assessment was undertaken by each member.
Moreover, in order to obtain objective opinions fromexperts, we engaged an independent law firm to analyze
and assess the results of the survey. By referring to thelaw firm’s analysis and assessment, discussions were held
at a Board meeting in May 2020, and the effectiveness of
the Board of Directors was finally determined.
(2) Results of Assessment
As a result of the assessment, Morinaga’s Board of Directors for FY2020/3 was determined to be “functioning
effectively” in light of the Companies Act and the Corporate Governance Code, as no significant malfunctions
or lack of systems were identified. Based on the above,it was acknowledged that the Board of Directors wasdemonstrating its effectiveness in accordance with theMorinaga Group’s basic concept of corporate governance.
(3) Efforts for Improvement
There were some issues identified in the FY2019/3

51

Morinaga & Co., Ltd. CSR Report 2020

assessment of the Board’s effectiveness. They included:
1) enhancement of the content of reports to the Board of
Directors; 2) review and adjustment of the report’s scope;and 3) promotion of cross-functional discussions. While
we believe that, with regard to these issues, a significant
progress has been made based on the FY2020/3 effectiveness assessment, we are committed to making further improvements in the future by sharing newly arising
issues and practical solution proposals at the meetingsof the Board of Directors.
(4) Action to be Taken in the Future
On the other hand, we shared the recognition thatthe following issues must be resolved in the future tostrengthen the functions of the Company’s Board andfurther improve its effectiveness and governance:(i)

The composition of the Board must be more balanced by, for example, increasing the ratio of Outside Directors;(ii) Matters to be resolved or reported should beselected appropriately after providing the Board
with sufficient information (including an enhancement of the report’s content and review/adjustment of the scope);(iii) The processes to nominate Directors and determine their remuneration should be clarified further;(iv) Sufficient discussions need to be held on the risk
management;(v) Discussions with a stakeholder’s perspective
should be accelerated;(vi) Cross-functional discussions should be accelerated further.

Based on the assessment of the Board’s effectiveness,
we are determined to further improve the Board’s effectiveness and strengthen our corporate governance bymaking necessary improvements for the solution ofissues listed above.

Changes in Our Response to the
Corporate Governance CodeNovember2015

Submitted a Corporate Governance Report that wasaligned with the Corporate Governance Code

June
2016

Appointed multiple Independent Outside Directors[Supplementary Principle 4-8-2]

June
2017

Introduced an electronic voting system and provided
English translations of the notice of convocation ofgeneral meeting of shareholders [Supplementary
Principle 1-2-4]

June
2018

Introduced a stock remuneration system for 10% of total
remuneration for non-Outside Directors [Supplementary
Principle 4-2-1]

July
2019

Published an English translation of Corporate Governance
Report on our website

Internal Controls
The Morinaga Group is committed to maximizing corporate value and achieving an enduring corporate growth

Governanceby strengthening our internal control system, increasing the management efficiency, operating its businessproperly, and ensuring effective supervisory and audit
practices. To ensure appropriate execution of duties, theBoard of Directors endeavors to establish an effective
internal control system as well as a system of complianceto legal requirements and internal rules including the

Articles of Incorporation, while Statutory Auditors are
responsible for auditing the effectiveness and functionality of such systems. In addition, Morinaga and its subsidiaries home and abroad have introduced a helpline
to collect a wide range of information about complianceissues take appropriate measures against them.

Compliance
Promotion of Compliance

Increasing Compliance AwarenessBased on its awareness that compliance is a priority
issue for all business activities, the Morinaga Group
formulated the “Morinaga Code of Conduct/Standardsof Conduct” in FY2002/3. In FY2009/3, it was revised to
the “Morinaga Group Code of Conduct/Standards ofConduct” to ensure that the Group can share a common
compliance management system.
Furthermore, we set up the Compliance Committee toestablish and promote the compliance management.
As a way to report compliance violations and seek consultation about compliance issues, we have establisheda helpline system. Under the system, we set up threepoints of contact for consultation—within the Company,
labor union, and an external lawyer’s office—to prevent
compliance violations from occurring.

With the aim of embedding a compliance culture into
the organization, we display the Morinaga Group Codeof Conduct/Standards of Behavior on panels in each
office, and distribute booklets and cards to all employees.
In order to increase compliance awareness, we provide
compliance training not only as part of training sessions
by job class, including those for new recruits and newly
appointed managers, but at such locations as the headquarters and individual offices.
In addition, we conduct an annual compliance questionnaire that covers all employees working at a domestic
member company of the Group, and use it to identify
the Group’s level of compliance and take appropriate
measures in the future.
For more details, see Respect for Human Rights on p.54.

Morinaga Group Compliance Management System
Compliance Committee

Cooperation- Lawyers and union
representatives are included.
- Advisors (Statutory Auditors)
are included.
* In charge of crisis response
in case of emergency
Establishment

Reporting (Users’
identity is kept
anonymous)

Helpline

Compliance supervisor
Cooperation

Cooperation

Point of contact for consultation- Internal (General Affairs
Division, Morinaga & Co.,Ltd.)
- External (All Morinaga Labor
Union)- External (Designated law
firm)

Individual divisions,departments,
offices, and affiliates

Compliance対応
promotion leader
Response

Consultation

Consultation
Response

All employees working
at domestic Group
companies

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

Morinaga Group’s new
employees

82 employees

Second-yeartraining

Morinaga Group’s second-year
employees

32 employees

Third-year training

Morinaga Group’s third-year
employees

28 employees

Fifth-year training

Morinaga Group’s fifth-year
employees

24 employees

Newly-appointed
S-grade employee
training

Morinaga’s employees
appointed to the S grade (chiefclass)

34 employees

New manager
training

Morinaga’s employees
appointed to a managerial
position

31 employees

Training provided
by officeConducted based on the resultsof the compliance questionnaire
Employees of Morinaga andaffiliated companies

510 employees
in total

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

Morinaga & Co., Ltd. CSR Report 202052

GovernanceRisk Management
Philosophy of Total Risk Management
The Morinaga Group identifies total risk that potentiallyexists in its business activities and takes appropriate
measures against the risk based on the philosophy of
total risk management.

(1) To Fulfill Corporate Social Responsibility(i) Ensuring of the safety of employees and visitors(ii) Safeguarding of assets(iii) Early business recovery and ensuring of business
continuity(2) To Gain Corporate Social Responsibility(i) Timely and appropriate information disclosure(ii) Contribution to local communities(iii) Humanitarian considerations

Major Risks and Responses

Further, to demonstrate our strong stance against
anti-social forces, we appointed a person in charge ofpreventing unreasonable demands. We also work tocollect information from related administrative agencies, and, in case of an emergency, we will take organization-wide actions swiftly, working closely with theseagencies.
Morinaga Group's Total Risk Management System
Total Risk Management Rules
Crisis Response Manuals

The Group recognizes that ensuring
There is a risk that, if a large-scale recall or product liability
food safety is the highest priority issue compensation occurs due to an unexpected quality accifor a food company.
dent, our performance and financial position are negatively
affected as a result of incurrence of significant costs and theGroup’s reputation being damaged severely.

Assumptions

Anticipated Risks❷Risks in the production system

Basically, the Company adopts theone product/one factory production
system.

❸Raw material
procurement risk

There is a risk that the Group's business performance andfinancial position are negatively affected in the event of alarge-scale disaster or accident that may have a significant
impact not only on the Group's production and sales activities but on consumers’ purchasing behavior.

- Our primary raw materials are agri- There is a risk that the Group’s performance and financial
cultural products such as wheat flour, position are negatively affected in the event of price hike or
cacao beans, and vegetable oils/fats. difficulties in acquiring a sufficient volume of raw materials- We use petroleum products as
due to such reasons as poor crops resulting from unseasonpackaging materials.
able weather or political instability in the country of origin.

Response by the Morinaga Group• Establishment of the Quality Policy and the
Quality Assurance Rules to build a systematic
quality assurance framework• Introduction of FSSC 22000 and strengtheningof the Quality Assessment System• Crisis Response Manuals should be referred toin case of a quality accident.
• Identification of possible measures for coreproducts as part of the business continuity
management (BCM).

• Strengthening of information collection,
diversification of procurement sources, maintenance of appropriate inventory levels, forward
exchange contracts, etc.

❹Weather, natural - P roducts purchasing behavior ofdisasters, infecwhich are susceptible to weather
tious diseases, etc. conditions.
(environmental-U nforeseen, large-scale naturaland social risks in disasters and infectious disease
the supply chain)pandemics

There is a risk that the Group’s performance and financial
position are negatively affected by a stagnation of supply
chain (mainly production and logistics).

• Flexible production management based on thecollection and analysis of weather information• Prompt establishment of a task force as well
as a production and supply system in case of anatural disaster, infectious disease, etc.

❻Business expanAs a global strategy, we expand
sion into overseas our business into overseas markets
marketsthrough our subsidiaries in the UnitedStates, China, Southeast Asia, etc.

In the event of an unexpected information leakage due
to, for example, an unauthorized access using an unforeseen technology, there is a risk that our performance andfinancial position are negatively affected as a result of
incurrence of significant costs and the Group’s reputation
being damaged severely.

There is a risk that the Group’s performance and financial
position are negatively affected in case of unpredictable
events such as a war, terrorism, political and social changes,
changes in local regulatory and taxation frameworks, business practices, and sudden exchange rate fluctuations.

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

❺Leakage of corpo- Information systems cover all ofrate and/or perthe business operations and handle
sonal information classified data.

❼Corporate Social
Responsibility

53

Overseas Crisis Response Manual

Risk Items

Information Leakage Crisis
Response Manual❶Risks related tofood safety

Personnel, Organization, Scandal,
and Infectious Disease Crisis
Response Manual

Major Risks Anticipated by the Morinaga Group and Responses Thereto

Social Crime Crises Response
ManualNatural Disaster Crisis Response
ManualAccident-related/Environmental
Crisis Response Manual

The Total Risk Management Rules includes various manuals such as the Natural Disaster Crisis Preparedness
Manual, which sets out measures to ensure an early
resumption of business in case of crisis. In FY2018/3, in
an attempt to take our business continuity plan (BCP) a
step further, we began to work on the development ofbusiness continuity management (BCM), a framework

In the event of a crisis, we will assess and judge thesituation promptly, take necessary actions such as theestablishment of a task force and information disclosure,while conducting a cause analysis and implementing
recurrence prevention measures.

Defective Product Crisis Response
ManualIn an effort to respond to potential risks existing in its
business activities, the Morinaga Group established the“Total Risk Management Rules” in FY2002/3 as part ofits internal control system. Based on the Rules, we classify and assess possible risks and implement preventive
measures in normal times. See the table below for major
possible risks and countermeasures.

of continuous improvements that allow the Company
to continue operations even when being affected by adisaster or accident, or resume operations as early as
possible after an interruption.

Compliance with laws and social
norms

Morinaga & Co., Ltd. CSR Report 2020

A regulatory violation or anti-social behavior will entail arisk of legal punishment, social sanctions, loss of trust, anddamage to the reputation and brand.

• Strengthening of business and risk management systems through information collection
in host countries• Strengthening of compliance with laws, rules,
and regulations by establishing the Morinaga
Group Code of Conduct• Management of compliance risks by the Compliance Committee

Governance

Respect for Human Rights
Human Rights Policy
The Morinaga Group considers that respect for humanrights is an important corporate social responsibility.
Based on the Morinaga Group Human Rights Policy, eachand every employee shall respect human rights, proceedwith the creation of a workplace free from discriminations and harassments, and take human rights into consideration on a supply chain-wide basis.

Morinaga Group Human Rights Policy
As a member of the international community, the Morinaga Group respects fundamental human rights, undertaking sincere business activities that do not tolerate
human rights violations.
1. Respect for human rights and prohibition of discrimination
We respect fundamental human rights, and will notdiscriminate in any way based on a person’s race,
gender, nationality, religion, ideology, age, or physicalcharacteristics, or for any other reason.
2. Prohibition of harassment
We will not participate in power harassment, sexual
harassment, or any other behavior whatsoever that injures human dignity.
3. Consideration for safety/hygiene
We will give consideration to safety and hygiene in theworkplace, endeavoring to ensure a comfortable work
environment, and respect employees’ fundamental
human rights.
4. Building and maintenance of good labor-management relations
We will respect the right to freedom of association andcollective bargaining and other fundamental rights,
building and maintaining good labor-management
relations.
5. Elimination of child labor/forced labor
In our various business activities, we will not accept
child labor, forced labor, or any other unfair labor
practices.
(Established in May 2018)session videos that can be accessed online by every
employee of the Company.
Identifying harassments through compliance survey
The Morinaga Group conducts a compliance survey inevery December, targeting all employees working atdomestic Group companies (the number of respondents
to the survey conducted in December 2019: 3,733),
with the view to determine the level of compliance in
the Group on a regular basis. In the survey, we attacha special attention to harassing behaviors and include
questions asking whether the respondent was directlyharassed or saw or heard of a harassing behavior in
the last 12 months and in any past year, respectively.
Answers to these questions are tabulated separately sothat we can have a detailed view of the Company’s levelof compliance.
We also ask questions about the corporate culture that
respects for workplace compliance as well as the respondent’s view on the Company’s degree of engagement in
the compliance management, in an effort to identify our
employees’ level of compliance awareness. The summaryof the survey results is fed back to all the survey respondents to share the understanding about the extent of theGroup’s compliance.
Examples of questions in the compliance survey• Have you ever been a victim of a power or sexual harassment?
• In the workplace, do you consult or confirm with your supervisor or colleague when you have any compliance orwork-related questions? Alternatively, does your workplace
have an atmosphere (environment) that allows such consultation or confirmation?

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

Consideration for Employees’ Human
RightsAnti-harassment training
According to our pro-human rights policy, we set theelimination of harassments as a goal of our complianceactivities. In our compliance training sessions, we continuously provide educational programs designed to prevent and raise awareness about power, sexual, and otherharassments.
Such programs ranges from two types of anti-harassment trainings for executives (one are trainings provided
by external lawyers targeting all executives of Morinaga,
the other are those for Morinaga’s all General Managers leading a division or department, heads of businessoffices, and executives of Group companies) to training

Online anti-harassment training

Morinaga & Co., Ltd. CSR Report 2020

54

ESG Data
Environment●Policy
Environmental policy“Morinaga Group Environmental Policy” https://www.morinaga.co.jp/company/english/csr/environment/management.html

Scope of ESG Data (Environment) Reporting
Morinaga & Co., Ltd., Takasaki Morinaga Co., Ltd., Morinaga Angel Dessert Co., Ltd., Morinaga Dessert Co., Ltd., Morinaga Snack Foods Co., Ltd.,

Morinaga Kofu Foods Co., Ltd., Aunt Stella Inc., Morinaga Market Development Co., Ltd., Morinaga Shoji Co., Ltd., Morinaga Takataki Country Co., Ltd.,
Morinaga Business Partner Co., Ltd., and Morinaga Institute of Biological Science, Inc.

Taiwan Morinaga Co. Ltd, Morinaga Food (Zhejiang) Co., Ltd., and Morinaga America Foods, Inc.

● Greenhouse gas emissions
CO₂ emissions

Unit

CO₂ emissions

t-CO₂
Basic unit (per manufacturing weight)

CO₂ emissions

FY2018/3

FY2019/3

FY2020/3
37,131Morinaga & Co., Ltd.
Morinaga Group’s production
bases in Japan

36,25637,588t-CO₂

56,745

58,13357,048t-CO₂/t

0.48

0.48

0.47

t-CO₂/t

-

8,167

9,137

Supply chain emissions (Scopes 1, 2, 3)•FY2020/3 results

Unit

Emissions

Scope for calculation

Scope

Morinaga Group’s production
bases overseas

Remarks

Domestic consolidated
companies
Domestic consolidated
companies
Domestic consolidated
companies

Scope1

Total

t-CO₂e20,794

Scope 2 (Location standard)

Total

t-CO₂e52,024

Scope 2 (Market standard)

Total

t-CO₂e49,605

Category 1

Purchased goods and services

t-CO₂e248,003

Category 2

Capital goods

t-CO₂e122,971

Category 3

Fuel- and energy-related activities

t-CO₂e3,774

Category 4

Upstream transportation and distribution

t-CO₂e15,809Category 5

Waste generated in operations

t-CO₂e4,176

Category 6

Business travelt-CO₂e618

Category 7

Employee commuting

t-CO₂e1,607

Category 8

Upstream leased assets

t-CO₂e557

Category 9

Downstream transportation and distribution

t-CO₂e--Category 10

Processing of sold products

t-CO₂e--Category 11

Use of sold products

t-CO₂e--Not applicable

Category 12

Disposal of sold products

t-CO₂e6,603

Category 13

Downstream leased assets

t-CO₂e--Not applicable

Category 14

Franchises

t-CO₂e--Category 15

Investments

t-CO₂e--Category 16

Other (upstream)t-CO₂e--Category 17

Other (downstream)t-CO₂e--Crude oil equivalentkl

Scope 3

Amount of raw materials andcontract manufacturing products
purchased

Domestic consolidated
companies
Domestic consolidated
companies
Domestic consolidated
companies
Morinaga & Co., Ltd.

Domestic consolidated
companies
Domestic consolidated
companies
Domestic consolidated
companies
Morinaga & Co., Ltd.

Not applicableNot applicable

Domestic consolidated
companies

Not applicableNot applicableNot evaluatedNot evaluated● Energy
Unit
Energy consumption

Recyclable energy
consumption
Total recyclable energy
purchased or generated

55

FY2018/3

FY2019/3

FY2020/3

35,39536,21335,505

Basic unit (per manufacturing weight)

kl/t

0.30

0.30

0.30

Electricity

10,000 kWh

9,937

10,1079,939

City gas

1,000 m3

9,079

9,434

9,221

LPG

t

13

11

11

Fuel oil

kl

0

0

0

Kerosene

kl

2

3

3

Crude oil equivalent

kl

0

0

0

Crude oil equivalent

kl

0

0

0

Morinaga & Co., Ltd. CSR Report 2020

Scope

Morinaga Group’s production
bases in Japan● Resources and waste

Unit

FY2018/3

FY2019/3

FY2020/3

46,66542,46041,342

Amount of raw materials
consumption

Primary raw material
Secondary raw materialt46,27652,90149,883

Amount of materials
consumption

Paper

t

16,397

14,35014,175t

Cardboard

t

8,722

9,041

8,004

Plastic

t

4,247

5,094

4,648

Glass

t

0

0

0

Steel

t

0

0

0

Aluminum

t

721

875

1,091

OthersWaste emissions

t

46

153

133

t

9,843

9,716

9,556

Recycling volume

t

9,840

9,712

9,553

Recycling rate

%

99.97

99.96

99.97

Final landfill volume

t

3

4

3

NOx emissions

t

29

38

36

SOx emissions

t

0

0

0

0

1

19

FY2018/3

FY2019/3

FY2020/3

-

515

616

Number of products using environmentally-friendly paper materials

Number of
products

Waste emissions

t

Unit

Scope

Morinaga Group’s production
bases in Japan

Scope

Morinaga Group’s production
bases overseas● Water
Unit

FY2018/3

FY2019/3

FY2020/3

Water resource consumption

1,000 m3

1,530

1,504

1,538

Waste water volume

1,000 m3

1,039

1,080

1,341

Unit

FY2018/3

FY2019/3

FY2020/3

-

159

148

Water resource consumption

1,000 m3

Scope
Morinaga Group’s production
bases in Japan

Scope

Morinaga Group’s production
bases overseas● Environmental management
Number of ISO 14001 certifications

Unit

FY2018/3

FY2019/3

FY2020/3

certification

1

1

1

Scope

 e acquired the certification using the multi-site approach whichW
combines our own factories, affiliated production companies, andthe headquarters’ integration secretariat.

● Compliance (environment)
FY2018/3

FY2019/3

FY2020/3

Number of times fined for environmental violations

Times

Unit

0

0

0

Environmental violation fine amount

yen

0

0

0

Scope
Morinaga Group’s production
bases in Japan

Morinaga & Co., Ltd. CSR Report 2020

56

ESG Data

Society●Policy
Human Rights Policy“Morinaga Group Human Rights Policy” https://www.morinaga.co.jp/company/english/about/governance.html● Customers
Customer policy“Basic Policy for Customer Satisfaction” aligned with ISO 10002 https://www.morinaga.co.jp/contact/service.html

Responsible marketing policy

Included in “Morinaga Group Code of Conduct” and “Morinaga Group Standards of Behavior”
https://www.morinaga.co.jp/company/english/about/vision.html

Customer feedbacks received by
Customer Service Center
Inquiries and opinions
Complaints

Unit

Total

contact
contact
contact

FY2018/3

FY2019/3

FY2020/3

33,861
5,579
39,44032,804
5,413
38,21731,658
4,593
36,251

Scope
Morinaga & Co., Ltd.

● Employee
Basic human resources policy

Included in “Handbook of Human Resources System”

Occupational safety and health policy

Included in “Health and Safety Management Regulation”

Number of full-time employees

Number of temporary employees

Average age

Average service years

Number of regular employees
working at domestic affiliatedcompanies
Number of temporary employees
working at domestic affiliatedcompanies
Number of new recruits

FemaleMale
Total
FemaleMale

Total
FemaleMale
Total
FemaleMale
Total
FemaleMale
Total
FemaleMale
Total
FemaleMale
Total
Number of new recruits by domestic Female
affiliates
Male
Total
Turnover rate (of new graduates resigned
after less than three years of service)
Employment rate of people with disabilities
Number of female managers

person (%)
years of age
years of age
years of age
year(s)year(s)year(s)person (%)
person (%)
person (%)
person (%)
person (%)
person (%)
person (%)
person (%)
person (%)
person (%)
person (%)
person (%)%

317 (20.3)
1,244 (79.7)
1,561 (100)195 (43.6)
252 (56.4)

447 (100)
39.7
42.9
42.3
17.3
19.2
18.8
210 (32.1)
444 (67.9)
654 (100)
828 (77.5)
240 (22.5)
1,068 (100)
17 (48.6)
18 (51.4)
35 (100)
21 (39.6)
32 (60.4)
53 (100)-

FY2019/3

332 (20.9)
1,254 (79.1)
1,586 (100)194 (44.2)
245 (55.8)

439 (100)
39.7
43.3
42.5
17.1
19.5
19.0
224 (33.6)
443 (66.4)
667 (100)
835 (76.1)
262 (23.9)
1,097 (100)
19 (35.8)
34 (64.2)
53 (100)
19 (31.1)
42 (68.9)
61 (100)
3.4

FY2020/3

343 (21.0)
1,290 (79.0)
1,633 (100)208 (46.3)
241 (53.7)

449 (100)
40.0
43.6
42.9
17.1
19.4
18.9
234 (34.8)
439 (65.2)
673 (100)
769 (79.0)
205 (21.0)
974 (100)
35 (70.0)
15 (30.0)50 (100)
37 (54.4)
31 (45.6)
68 (100)
3.2

2.53
33

2.79
43

5.2
9.1
18 (69.2)
8 (30.8)
26 (100)
95.7
21 (100)0 (0.0)21 (100)

6.7
20.0
13 (65.0)
7 (35.0)
20 (100)100
24 (100)0 (0.0)24 (100)

7.7
22.2
16 (48.5)
17 (51.5)
33 (100)100
26 (100)0 (0.0)26 (100)

34

76

72

%

85.0

93.0

89.0

hours/monthday%
person

16.2
11.8
93.0
0

16.8
12.3
96.1
0

15.1
12.6
94.7
1

%
%
%

100
100
100

100
100
100

100
100
100

Rate of frequency

-

3.07

2.02

1.05

Number of fatal occupational accidents

person0

00

Reinstatement rate
Number of employees utilizing
shorter work hour system forchildcare

FemaleMale
Total
FemaleMale
Total

Number of employees wishing to be
reemployed after retirement
Reemployment rate of post retirement
employees
Average overtime hours (per employee)Days of annual paid leave acquired
Annual paid leave acquisition rate
Number of employees using nursing careleave
Ratio of union members
Rate of stress check implementation
Percentage of employees participating in
health checkups

Morinaga & Co., Ltd. CSR Report 2020%
personFY2018/3

2.44
25

Ratio of female managers
Ratio of female Directors
Number of employees taking
childcare leave

57

Unit

person (%)
person (%)
person (%)
person (%)
person (%)%%
person (%)
person (%)
person (%)%
person (%)
person (%)
person (%)
personRemarks

Includes seconded employees

The number of directly-hired associate
employees as of the end of the fiscal year
Includes seconded employees

Includes seconded employees

Excludes employees seconded from
Morinaga & Co., Ltd.
Including reemployed employees (rehires
plus temporary employees)
Including new graduates and career-track
employees

Ending of each fiscal year (as of March 31)
Beginning of each fiscal year (as of April 1)

Based on the date when childcare leavecommenced (including seconded
employees and associated employees)

Number of regular employees who fallunder the category as of the end of eachfiscal year

Counted regular employees onlyRate of frequency of employees taking
leave from work due to work-related
injuries per million actual work hours atdomestic factories

Scope

Morinaga& Co., Ltd.

Governance●Corporate governance
Number of Directors

Internal

Independent Outside

Grand total

Number of Statutory
Auditors

Internal

Independent Outside

Grand total

Number of times Board of Directors meetings held
Attendance rate for Board of Directors meetings
Number of times Board of Auditors meetings held
Percentage of attendance at Board of Auditors meetings
Remuneration for internal Directors*
Remuneration for Auditors
Remuneration for Outside Directors* Excluding employee-portion salaries for employee-directors

FemaleMale
Total
FemaleMale
Total
Female
Male
Total

Unit

person (%)
person (%)
person (%)
person (%)
person (%)
person (%)
person (%)
person (%)
person (%)

FY2018/3

0 (0.0)9 (100)9 (100)1 (50.0)
1 (50.0)
2 (100)1 (9.1)10 (90.9)
11 (100)

FY2019/3

1 (12.5)
7 (87.5)
8 (100)1 (50.0)
1 (50.0)
2 (100)2 (20.0)8 (80.0)
10 (100)

FY2020/3

1 (14.3)
6 (85.7)
7 (100)1 (50.0)
1 (50.0)
2 (100)2 (22.2)
7 (77.8)
9 (100)Femaleperson (%)

0 (0.0)0 (0.0)0 (0.0)Male
Total
FemaleMale
Total
FemaleMale
Totalperson (%)
person (%)
person (%)
person (%)
person (%)
person (%)
person (%)
person (%)
Times
%
Times
%
million yen
million yen
million yen

2 (100)2 (100)0 (0.0)2 (100)2 (100)0 (0.0)4 (100)4 (100)
16
98
21
100
293
51
22

2 (100)2 (100)0 (0.0)2 (100)2 (100)0 (0.0)4 (100)4 (100)
17
99
21
99
237
51
20

1 (100)1 (100)0 (0.0)3 (100)3 (100)0 (0.0)4 (100)4 (100)
16
100
21
100
169
48
20

Scope

Morinaga & Co., Ltd.

● Compliance
Code of Ethics

Included in “Morinaga Group Code of Conduct” and “Morinaga Group Standards of Behavior”

Anti-Corruption Policy

Included in “Morinaga Group Code of Conduct” and “Morinaga Group Standards of Behavior”

Bribery Policy

Included in “Morinaga Group Code of Conduct” and “Morinaga Group Standards of Behavior”

Whistleblower Protection Policy

Included in work regulations

Policy regarding Conflicts of Interest

Included in the Rules of Decision-Making Criteria

Related-Party Transaction Policy for Directors

Included in the Rules of Decision-Making Criteria

Number of cases of anti-corruption violations
Amount of anti-corruption violation penalties
Number of regulatory violations
Legal violation fine amountviolationyen
violation
yen

Unit

FY2018/3

0000FY2019/3

00
00FY2020/3

00
1 (recommendation)
0

Scope

Morinaga & Co., Ltd.

Morinaga & Co., Ltd. CSR Report 202058

Network of the Morinaga Group

Morinaga America Foods, Inc. (North Carolina, USA)
Shanghai Morinaga Co., Ltd.
(Shanghai, China)

Morinaga Food (Zhejiang) Co., Ltd.

Morinaga America, Inc. (California, USA)

(Zhejiang, China)

Taiwan Morinaga Co., Ltd.
(Taipei, Taiwan)

Morinaga Asia Pacific Co., Ltd.
(Bangkok, Thailand)Morinaga Bioscience (Thailand) Co., Ltd.
(Bangkok, Thailand)Overseas

4 countries 7 bases
Sales

Number of employeesJapan

17 bases

208,878,000,000 yen
2,711 employees(As of March 2020)

List of Group Companies and Business Fields
Domestic group companies
Food manufacturing● Takasaki Morinaga Co., Ltd.

● Morinaga Angel Dessert Co., Ltd.
● Morinaga Dessert Co., Ltd.

Food Sales

OthersReal estate and services● Morinaga Institute of Biological
Science, Inc.

● Morinaga Shoji Co., Ltd.

● Aunt Stella Inc.

● Morinaga Takataki Country Co., Ltd.

● Morinaga Business Partner Co., Ltd.

● Morinaga Finance Co., Ltd.
● SEE THE SUN Inc.

● Morinaga Market Development Co., Ltd.

● Welights Inc.

Overseas Group companies● Taiwan Morinaga Co., Ltd. (Taipei, Taiwan)● Shanghai Morinaga Co., Ltd. (Shanghai, China)● Morinaga Food (Zhejiang) Co., Ltd. (Zhejiang, China)● Morinaga America, Inc. (California, USA)

● Morinaga America Foods, Inc. (North Carolina, USA)
● Morinaga Asia Pacific Co., Ltd. (Bangkok, Thailand)● Morinaga Bioscience (Thailand) Co., Ltd.

59

Morinaga & Co., Ltd. CSR Report 2020

(Bangkok, Thailand)= Non-consolidated subsidiary accounted for by the equity method

Morinaga & Co., Ltd. Corporate Profile
Company Name

Morinaga & Co., Ltd.

Representative

Eijiro Ota, President and Representative Director

Head office address 5-33-1 Shiba, Minato-ku, Tokyo 108-8403 Japan
Establishment
CapitalAugust 15, 1899 Founded as Morinaga’s Western Confectionery Shop
18,610,000,000 yen

Main business activities	Manufacturing, purchasing, and sale of confectioneries (caramel, biscuits, chocolate, etc.), foods(cocoa, cake mix, etc.), frozen desserts (ice cream, etc.) and health products (jelly drinks, etc.)
Sales	187,159,000,000 yen (208,878,000,000 yen on a Morinaga Group consolidated basis)
Number of employees 1,414 (2,711 on a Morinaga Group consolidated basis) (As of March 2020)
Scope of reporting

Contact address for inquiries about the CSR Report

This report is mainly relevant to Morinaga & Co., Ltd. However,
the environmental data of the ESG data section shows theaggregate results of the Morinaga Group, including four factories of Morinaga & Co., Ltd and five affiliated production companies, as well as the results of overseas production bases.

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

Period covered by the Report

April 1, 2019 through March 31, 2020

* The Report includes certain initiatives before FY2020/3 andactivities after April 2020.
*	The ESG data of the overseas production bases covers theperiod from January 1, 2019 to December 31, 2019.

CSR Group, Corporate Communication Div.,
Morinaga & Co., Ltd.
Tel: +81-(0)3-3456-0143/Fax: +81-(0)3-3769-6129

Evaluation by external bodies-	The Certified Health and Productivity Management Organization 2020 (White 500)
Morinaga & Co., Ltd. has been selected as the Certified Healthand Productivity Management Organization 2020 in the White
500 category for three consecutive years and ranked within
the top 10% of the food industry under a program jointly
administered by the Ministry of Economy, Trade and Industry(METI) and Nippon Kenko Kaigi.
- MSCI Japan Empowering Women Index (WIN)Morinaga & Co., Ltd. has been selected as a constituent of the
MSCI Japan Empowering Women Index as a company withexcellent gender diversity.
- CDP Climate Change 2019
Morinaga & Co. Ltd. has achieved a B score in the Climate
Change Report issued by the CDP, an international non-profit
organization that works on the achievement of sustainableeconomy.

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

Reference guidelines●	“Environmental Reporting Guidelines 2018” issued by the
Ministry of the Environment● ISO 26000 (Guidance on Social Responsibility)● GRI Standards

The Morinaga Group has issued “Morinaga CSR Report” in booklet and PDF formats since FY2015/3 to help
stakeholders better understand its attitude towards, and initiatives on, corporate social responsibility (CSR)
that should be fulfilled by the Group based on its vision and mission statement.

Editorial Policy

The FY2021/3 version is designed to cover a wider range of CSR information than ever before. We are committed to promoting our CSR activities, while using this Report as a way to help our stakeholders better
understand what we do for CSR and build a deeper and more trustful relationship with them.
For our latest CSR information, please visit our corporate website at:https://www.morinaga.co.jp/company/csr/

Morinaga & Co., Ltd. CSR Report 2020

60

Morinaga & Co., Ltd.
5-33-1 Shiba, Minato-ku,Tokyo 108-8403 Japan
Contact address for inquiries about the CSR Report
CSR Group, Corporate Communication Division
Tel: +81-(0)3-3456-0143 Fax: +81-(0)3-3769-6129