CSV REPORT 2019

Contents

Corporate Philosophy
THE ROUTE

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The CCBJH
Group’s CSV

CSV Progress
ReportCCBJH Group
Information

02

Toward 2020
and Beyond
What kind of future can we create?
The Sustainable Development Goals (SDGs), which were adopted
by the United Nations in 2015, identify corporations as key actors
in solving global social issues. The continued expansion of
the CCBJH Group’s business comes with a duty to respond tosocial issues. Now more than ever, we must confront the impact
our activities have on those around us, and how we should
engage with the problems our communities face.
What should the CCBJH Group do?
And what can we do? When we think
about the future, we know
the time to act is now.

What are the SDGs?
The SDGs are common
global goals to beachieved by 2030.
The Sustainable Development
Goals (SDGs), adopted at theUnited Nations Sustainable
Development Summit held in
September 2015, are a set ofshared global priorities to beachieved by 2030 through theefforts of the international
community in order to realize aworld in which no one is left
behind. The SDGs are universal
goals that broadly encompass
economic, social, andenvironmental topics.

Contents

Corporate Philosophy
THE ROUTE

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The CCBJH
Group’s CSV

CSV Progress
ReportCCBJH Group
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04 Corporate Philosophy: THE ROUTE
05 Top Message
07 The CCBJH Group’s CSV
07

23
24

CCBJH Group by the Numbers

Featured Topic 1:

Welcoming Consumers from Overseas
Featured Topic 2:

Energizing Communities through Sports

08 The CCBJH Group’s CSV Management252018 Progress Report

09 2018 Financial Highlights

27

Customer Satisfaction

1 0 2018 CSV Highlights

28

Quality Assurance

29

Ethics and Compliance11

13

Editorial policy
CSV Priority: Community

Contributing to the Realization of the SDGs

CSV Progress Report

30 Risk Management

CSV Priority: Health31

Human Rights and Employee Job Satisfaction

Featured Topic 1:

33

Roundtable Discussion: Smart Work

35

Corporate Governance

13

14
15

Supporting Consumers’ Health withan Extensive Product Line-up
Featured Topic 2:

Healthcare and Skincare Business2018 Progress Report

CSV Priority: Environment
1718

37 CCBJH Group Information
37

Board of Directors

39

Main Product Line-up

40 CCBJH Group Profile

Featured Topic 1:

Aiming to Realize a “World Without Waste”

41

Communicating with Our Stakeholders

Featured Topic 2:

42

Plant Tours

Water Resource Conservation

20 2018 Progress Report

CSV Report 2019 survey

ck

e
Ch

This survey is to aid in the development of our future CSV initiatives and our next CSV Report.
Please let us know your thoughts and opinions. The feedback you give us will play a role in
improving our CSV activities and disclosures.

Please access the survey via the URL below or the QR code.

https://form.ccbji.co.jp/form/csv2019_en

The Coca-Cola Bottlers Japan Holdings Group (CCBJH Group) believes we canhelp build a more sustainable society through our beverage business and ourhealthcare and skincare business. In this report, our aim is to communicate the
CCBJH Group philosophy of Creating Shared Value (CSV) and introduce someof our specific CSV initiatives to our stakeholders.
Referenced guidelines
Global Reporting Initiative (GRI)
Sustainability Reporting Standards 2016
Period covered
This report covers activities from January 2018 to the end of December 2018.
Numerical data is also for the period from January 2018 to the end of December
2018.
Scope of the report
Information presented in this report was collected from Coca-Cola Bottlers
Japan Holdings Inc., Coca-Cola Bottlers Japan Inc., the Coca-Cola Bottlers Japan
Group companies*1, Q’SAI CO., LTD., and the Q’SAI Group companies*2. (Pleasesee page 40 for the Group structure.)
Date of issue
June 2019
Terminology
The “CCBJH Group” (“we”) refers to Coca-Cola Bottlers Japan Holdings Inc. andits eight Group companies (Coca-Cola Bottlers Japan Inc., the CCBJI Group’s
other companies, and Q’SAI CO., LTD.) as well as Q’SAI CO., LTD. Group
companies, while “CCBJI” refers solely to Coca-Cola Bottlers Japan Inc.
“CCBJI Group” refers to Coca-Cola Bottlers Japan Inc. and its Group companies.
“Bottlers” refers to all bottling partners throughout Japan, as designated by
Coca-Cola (Japan) Company, Limited. The “Coca-Cola system” comprises
Coca-Cola (Japan) Company, Limited, its bottling partners, and other affiliatedcompanies. “Customers” generally refers to both “consumers” (primarily productend-users) and “business partners” (primarily those who sell our products).
* 1 Coca-Cola Customer Marketing Co., Ltd., Coca-Cola Bottlers Japan Vending Inc., FV Japan Co.,
Ltd., Kadiac Co., Ltd., Coca-Cola Bottlers Japan Business Services Inc., and Coca-Cola Bottlers
Japan Benefit Inc.
*2 QSAI Analysis and Research Center Co., Ltd., QSAI FARM SHIMANE Co., Ltd., and CQ Ventures
Co., Ltd.

03

Corporate Philosophy: THE ROUTE

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Corporate Philosophy
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The CCBJH
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CSV Progress
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THE ROUTE
Our philosophy that supports value creation

MissionWhat we should do for society(meaning of existence)

Deliver happy, refreshing moments toeveryone in the community, every day.

Corporate Identity
What employees should
always consider in the courseof operations

Communitybased

Hinkaku(Corporate
Dignity)

We help build and support sustainablecommunities, foster strong connections
with them, and help protect theenvironment, Creating Shared Value.

We respect human rights, honor
community principles, and strive tomaintain the highest ethical standards.

Customercentric

We focus on all our consumers
and customers to become theirtrusted partner.

Diversity

We respect the individuality of ouremployees, actively incorporating diverse
values and ideas so all can achieve theirfull potential.

Culture1

Build on our HERITAGE as we shape our FUTURE.

5 Enjoy life and welcome CHALLENGE.

What we value and how we
act in order to be a company
that supports society

2 Fuel life and work with commitment and PASSION.

6 Act with RESPECT, inspire RESPECT.

3 Base judgments on ETHICS.

7 Value COOPERATION.

4 Think independently, take RESPONSIBILITY.

8 Pursue “SIMPLE AND SPEEDY” solutions.

CCBJH Group philosophy

https://en.ccbji.co.jp/vision/about.php

04Top Message

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Corporate Philosophy
THE ROUTE

As society changes,
our company must as well.
How we transform is up to us.
A year in which the CCBJH Group
achieved results while also
recognizing new challenges
The Coca-Cola Bottlers Japan HoldingsGroup (CCBJH Group), created from the
management integration of Coca-Cola
West and Coca-Cola East Japan bottlingcompanies, consists of two businesssegments: the Coca-Cola beveragebusiness and the healthcare and skincare
business. Among more than 250 Coca-Colabottlers worldwide, the CCBJH Group is
the largest Coca-Cola bottler in Asia, and
the Group’s beverage business is one of thelargest in the world in terms of revenue.
Our corporate identity consists of four
ideals to which all CCBJH Group employees
should aspire in their daily businessactivities: community-based and customercentric values, hinkaku (corporate dignity),and diversity. Our standard for being
community-based is to realize the conceptof Creating Shared Value (CSV) by placing
importance on connections with local
communities and the environment that wehave nurtured over many years. We suffereda major blow in July 2018, when the Hongo

Plant in Mihara, Hiroshima Prefecture,sustained severe damage from torrential
rains and flooding in western Japan andsuspended all operations. Spurred to action
by our commitment to being communitybased and customer-centric, we quickly
decided on an appropriate relocation site in
the local Mihara area and are now steadily
working to rebuild and restart operations inthe spring of 2020 at the new site.
Although our business integration has
created many benefits in terms of scale andoperational synergies, we face the challengeof how to respond to a rapidly changing
market environment and diversifying
customer needs. To help address thischallenge, we implemented a reorganizationin March 2019, shifting to an organizational
structure that enables faster and more
efficient decision-making, a renewed growthmindset, and a reenergized commitment tocreating shared value.
On a personal note, I am excited to beback in Japan, a place that is like a secondTop
Message

The CCBJH
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CSV Progress
ReportCCBJH Group
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The outcome of creating shared value iswhere our true results lie.
home to me, and I feel a great sense of
purpose in having this opportunity toshape the future development of the
CCBJH Group. I take very seriously thesocial responsibilities that the Group must
fulfill as a leader in the Japanese beverage
market and will devote myself
wholeheartedly to rebuilding a foundation
for future growth under the new corporate
structure.

Engaging with the SDGs andreinforcing our ESG-focused
initiatives
The Sustainable Development Goals(SDGs), comprising 17 goals to be achievedby 2030, were adopted at a United Nations
Summit in 2015, and Japan’s Corporate
Governance Code went into effect thesame year. In 2018, Japan’s Ministry of
Economy, Trade and Industry endorsed andsigned a statement of commitment to the
purpose of the Task Force on Climaterelated Financial Disclosures (TCFD),
instituted by the Financial Stability Boardin accordance with the instructions of theG20 Finance Ministers and Central Bank
Governors Meeting. It is clear that
corporate environmental, social, andgovernance (ESG) performance is only
becoming more important.
Since before the business integration,
the CCBJH Group had established CSR
priorities in accordance with ISO 26000,
the international standard for social
responsibility, and managed its businesses
with a strong focus on ESG. The Group
continues to place the concept of Creating
Shared Value (CSV), a further refinement of
CSR, at the core of management, and all of
the Group’s employees and businessdivisions will concentrate their efforts onrealization of CSV in their own work.
In addition to the priorities of customer
satisfaction, quality assurance, ethics andcompliance, risk management, humanrights, and job satisfaction, we will consider
what new added value we can deliver byleveraging the power of the Coca-Colabrand and how we can help solve problems
facing local communities through ourbusiness. We will focus on our priority
issues of health, the environment, andcommunity while further reinforcing

initiatives aimed at creating shared value.
In the area of health, we will promotehealthy lifestyles through the provision ofsafe, high-quality products and services
suited to the needs and preferences ofpeople of all ages. In addressing theenvironment, we aim to be on the cuttingedge and leverage innovation tosimultaneously grow our business andreduce our environmental impact throughprograms focused on packaging andwater—which is essential to our business—
as well as other natural resources. To
benefit communities, we will make real theconcept of CSV by further boosting
collaboration and engaging in activities
that contribute to community revitalization.
Sustainable growth is not possible for acompany that believes business expansion
can only come at the expense of theenvironment and society. The CCBJHGroup is not simply interested in the shortterm pursuit of profits. Rather, we want tomaintain a wide perspective and farsighted
outlook to ensure close alignment between
the future needs of society and thecommunities in which we operate, and our
vision for the long-term health of ourbusiness. As we embrace new challenges
with corporate dignity and become a placein which every employee understands thatbusiness results can contribute to sharedvalue with society, we look forward toearning and maintaining the continued
trust of our many stakeholders.

Calin Dragan
Representative Director and President
Coca-Cola Bottlers Japan Inc.

CCBJH Group by the Numbers

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WHO WE ARE
Among the world’s largest
by revenue andBrands offeredin JapanAsia’s largest

independent Coca-Cola bottler

Over

50

Vending machines
ASIA

About

700,000

Plants*17

JAPAN

Sales and
distribution
centers* Includes the Hongo Plant, Hiroshima,
which is currently inactive

Business area

Tokyo,
Kyoto,
Osaka, 35
andResponsible for close to 90% of the sales volume of
the Coca-Cola system in Japan

About

350
Consumers
Customer outlets

prefectures

240,000(Households and consumers in sales areas)

About

112 million(51 million households)

Data as of the end of December 2018

The CCBJH Group’s CSV Management

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The CCBJH
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CSV Progress
ReportCCBJH Group
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CREATING SHARED VALUE
While providing significant value to society throughits business activities, the CCBJH Group seeks tofurther its presence in nurturing prosperity together
with its stakeholders. To this end, the Group has
adopted the CSV concept as a part of managing
how it carries out business.

HealthEnvironment

Community

CSV focal points
Since the CCBJH Group recognizes that addressing social
issues in areas closely related to its business activities is key
to realizing CSV, the Group has decided to focus on thethree priority issues of health, the environment, andcommunity. We believe that using the strengths of the
CCBJH Group to contribute to the development of asustainable society will help cultivate the support and trustof many stakeholders. Building on the main topics ofcustomer satisfaction, quality assurance, ethics andcompliance, risk management, respect for human rights,
and employee job satisfaction, we have set goals andguidelines for all employees to carry out their daily tasks.

Conducting business together
with stakeholders
The stakeholders with which the CCBJH Group creates
shared value include local communities, various associations
and organizations, consumers, business partners, suppliers,
investors, and the employees that work as part of theGroup. As the issues that society faces become morediverse and complex, the participation of our stakeholders
is crucial. Listening to our stakeholders’ needs and providing
value to society is the Group’s most important mission.

Humanrights & job
satisfaction

Customersatisfaction

Qualityassurance

Ethics &complianceRiskmanagement082018 Financial Highlights

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2018 AT A GLANCE
Revenue

Business income¥927,307

millionOperating profit¥23,276
million

Net profit for the year attributableto owners of the parent¥ 14,682
millionVolumecomparisonby category

Volumecomparisonby channel¥ 10,117

millionSupermarket ....................................... 23%
Drug store & discounter ................. 1 3%
Convenience store ............................ 1 6%
Vending machine............................... 24%
Retail & food service ........................ 23%
Other ...................................................... 1 %Sparkling soft drink .......................... 27%
Non-sugar tea..................................... 20%
Sports drink ......................................... 9%
Water ..................................................... 9%
Coffee .................................................... 20%
Juice ....................................................... 7%
Other ...................................................... 8%

Sales volume does not include alcoholic beverages.

Earnings per share(EPS)¥52.682019 Key Metrics*
Revenue growth

Beginning from the full-year fiscal 2018 results, wehave reported financial information according toInternational Financial Reporting Standards (IFRS).
“Business income” has also been introduced as ameasure of recurring business performance since theadoption of IFRS.

Value share

Revenue unchanged year on year, volume –1%
Value ahead of volume

CAPEX¥99.8 billion

Business income (BI)¥15.4 billion

Dividend

Full-year ¥50/share*Based on the “Revision of Full-Year 2019 Forecast” released on May 15, 20192018 CSV Highlights

Corporate Philosophy
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The CCBJH
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CSV Progress
ReportCCBJH Group
Information2018 CSV HIGHLIGHTS
Hydration seminar andDrink Education seminar participants

Approx.

8,600(approx. +3,600 year on year)

Brands and products offered in Japan

Over

50

Water used for manufacturing

14,071800

beverage
products

FOSHU* and Food with
Function Claims products sold in Japan

11.5

million cases(–800,000 year on year)*Foods for Specified Health Uses

4,415(–7.30% year on year)(–608 year on year)

Recycling rate of waste from plants

Plant tour visitors

Overbrands andthousand m3

Sports clinic and class participants

Approx.

99.11%

Approx.

1 67,000(approx. –0.83% year on year)(approx. –6,000 year on year)

CFC-free vending machine ratio

Disaster agreements with local governments

Approx.

78%(approx. +10% year on year)586(+2 year on year)

10Contributing to the Realization of the SDGs

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The CCBJH
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CSV Progress
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Goals closely connected to
the CCBJH Group's business activities

Responsible
Consumption
and Production

Good
Health andWell-being

Clean Waterand Sanitation

ClimateActionQuality
Education

Decent Workand Economic
GrowthLife
Below Water

GenderEquality

ReducedInequalities

Peace, Justiceand Strong
Institutions

BIOSPHERE

SOCIETY

The Sustainable Development Goals (SDGs), adopted at the United Nations
Sustainable Development Summit held in September 2015, are a set of sharedglobal priorities to be achieved by 2030. The CCBJH Group aims to contribute to
the SDGs through its business activities, and is developing specific action plans
in collaboration with Coca-Cola Japan and other stakeholders.
Using the model on the right to examine the SDGs overall, while also referringto the standards from the Global Reporting Initiative (GRI) and the Sustainability
Accounting Standards Board, we have formulated goals and initiatives that areinterconnected with our business activities. We will next consider and proactively
address the risks and opportunities to be found in our value chain structure.

ECONOMYFOR A HEALTHIER WORLD

Based on the SDG “wedding cake” illustration presented by Johan Rockström and Pavan Sukhdev(Image credit: Azote for Stockholm Resilience Centre, Stockholm University)

11

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SDG-related Initiatives
Supporting consumers’ health withan extensive product line-up(Foods for Specified Health Uses,
Foods with Function Claims)

P. 1 3

Healthcare and skincare business

P.1 4

Health support initiatives(Coke ON Walk, mocktails, and“Enjoy Walking until 100 Project”)

P. 1 5

Production department initiatives

P.2 1

P.27

Increased efficiency and use of modal shiftby the logistics and transportation
department

P.2 1Compliance education

P.29

Eco-driving and use of hybrid vehicles

P.2 1

Ethics & Compliance Reporting Hotline

P.29

Use of energy-saving,
non-chlorofluorocarbon
equipment by sales department

P.2 1Open communication andcorrect information

P. 1 6

P. 1 7

Bins for sorting recycling andconsumer awareness stickers

P. 1 7

Collaborating with members of
the beverage industry and otherstakeholders on recycling initiatives
Participation in community cleanup
campaigns

P. 1 7

Risk management systems

P.30

Welcoming consumers from overseas(multilingual POP communicationmaterials, visitor-friendly vending machines)

P.23

Customer Contact Center

Hydration seminars, Drink Education seminars P. 1 6Sports clinics by company sports teams

P.24

Plant tours

P.25

Environmental education programs

P.25

P. 1 7, 222030 Packaging Vision

Diversity and inclusion initiatives

P.32

Initiatives for expanding women’s rolesin the workplace

P.32

Water resource conservation

P. 1 8Returning to nature the water used for
manufacturing

P. 1 9Forest preservation activities(Coca-Cola “Learn from the Forest” project)

P. 1 9Compliance with ISO 14001 andother international regulations

P.20

Recycling waste from plants(zero emissions)

P.22

Agreements with local governments
and installation of disaster-response
emergency vending machines

P.26

Quality assurance system (KORE)

P.28

The Coca-Cola system
in JapanCorporate governance

The Coca-Cola system in Japan is composed of Coca-Cola (Japan) Co., Ltd.—which supplies
beverage bases, plans and develops new products, and conducts marketing activities—as wellas five bottling partners and other affiliated companies that manufacture or sell products andretrieve their containers.

Coca-Cola (Japan) Co., Ltd.

Human resources development(career advancement andperformance evaluation)

P.3 1

Human rights initiatives

P.32

Occupational safety and health initiatives

P.32

Work-style reform initiatives

P.33

Planning

Researchanddevelopment

P.35–36

Beverage
base
production

Coca-Cola Tokyo Research & Development Co., Ltd.

Bottling partners and affiliated companies

Production

Distributionandtransportation

Sales

Retrieval

RecyclingCSV Priority

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HealthSupporting Consumers’ Health withan Extensive Product Line-up

Featured
Topic

Background: Key Societal Issues

We offer a wide product line-up adapted to diverse needs. We have responded to growing healthconsciousness with products such as mineral water, non-sugar tea, and no-calorie beverages, andin recent years we have also expanded our line-up to include Foods for Specified Health Uses
(FOSHU) and Foods with Function Claims. We support our consumers’ lifestyles through productsthat provide overall refreshment and contribute to improving health.

2018

2009
debut

debut

Sokenbicha
Since its launch in 1993, as aunique non-sugar tea thatprovides refreshment whileaiding health and beauty,
Sokenbicha has become aleader in the non-sugar tea
category because of its clean
aroma and is loved by a wide
range of people.

I LOHAS is a brand ofJapanese mineral water
developed out of a love forgreat-tasting water and theenvironment. I LOHAS mineralwater is drawn from carefully
selected water sources andlocally produced for adelicious taste that can beenjoyed at any time.

2007
debut

Canada Dry
The Tansan Strong

Ayataka
Tokusencha

Canada Dry The Tansan
Strong is highly carbonatedwater with zero calories,
zero sugar, and zero
caffeine created to provide
an invigorating feel andcrisp flavor. Both the waterand gas used forcarbonation are filtered in
the uncompromising
pursuit of delicious taste.

This product is a
FOSHU green tea that
contains indigestible
dextrin, a plantderived dietary fiber.
The product provides
two health benefits bysuppressing fat
absorption andslowing sugar
absorption.

Aquarius S-Body

Coca-Cola Zero
Since its launch in 2007,
Coca-Cola Zero has delivered
the delicious signature tasteof Coca-Cola with zerocalories, zero preservatives,and zero artificial flavorings.
This product provides all
the powerful, refreshingsensation and rich flavorof regular Coca-Cola.

In recent years, major changes in Japan’s
population demographics, such as declining
birthrate and aging population, have increased inseverity. The lifestyles of individuals are also likely
to become even more diverse in the coming years
due to the increasing number of nuclear families
and single-person households.

debut

I LOHAS Natural
Mineral Water

1993

Demographic changes andlifestyle diversification in Japan

Aquarius S-Body is the first beverage with the Food with Function
Claims label offered under the Aquarius brand. It contains tiliroside,a flavonoid derived from rose hips that has been reported to help
decrease body fat. It has all the great taste of original Aquariuswith zero calories.

k

ec

Ch

Please refer to the link below for details on label permissions and notifications regarding these FOSHU
and Food with Function Claims beverages (in Japanese only).

https://www.cocacola.co.jp/inryoguide/lineup

CSV Priority

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HealthHealthcare and Skincare BusinessFeatured
Topic

Q’SAI’s mission is to enhance value in consumers’ lives and lifestyles through thehealthcare and skincare business. Q’SAI provides kale juice and other high-quality, safe,
and trustworthy products that contribute to the achievement of consumer health andhappiness with the aim of helping consumers remain energetic, active, beautiful, andable to enjoy life.

Contributing to consumer health andhappiness with healthcare and skincare products
Although the environments in which we live will continue
to change in the years ahead, the importance ofconsidering health in everyday living will remain constant.
Q’SAI’s signature product, Kale Aojiru (kale juice),
contributes to improving consumer quality of life because
it is full of nutrients that are often missing in the modern
diet. The kale used in this product is grown with absolutely
no pesticides or chemical fertilizers. Q’SAI is committed tomaking products that people can use with peace of mind,
and applies its own rigorous management and control
systems to ensure product quality.

Main products fromom Q’SAI

We will continue to provide a broad range of healthcare
and skincare products to help people lead energetic andenjoyable lives at any age. These products include
Kale Aojiru to promote health, Knee-support Collagen to
help consumers walk energetically, and cola-rich collagenskincare products to make consumers look and feel young
and beautiful so they enjoy going out and socializing.

Background: Key Societal Issues

Longer lifespans andescalating health needs in JapanIn postwar Japan, cases of illness decreased dramaticallyand the average life expectancy increased substantially.
However, lifestyle diseases associated with aging haveincreased and this, together with rising medical costs, has
become a major social issue. As people continue to live
longer, it is becoming more important to maintain healthand the ability to live on one’s own, with emphasis now
being placed on not just extending the average lifespan but
on attaining a prolonged healthy life expectancy.

Rigorous quality control
Since Q’SAI makes products for people to use in their
daily lives, we make absolutely sure that consumers
can use any of our products with true peace of mind.
We strive to maintain high product quality throughstrict inspection and control.
Q’SAI Analysis and Research Center, a specialized
food product analysis institution that focuses on
residual agricultural chemicals, engages in every
aspect of food product testing and analysis on behalfof major food product companies, including testing
for residual agricultural chemicals, antibiotic
substances, nutrient levels, and foreign substances.
Because it constantly pursues improved technologies,
in December 2004 the center became the firstprivate-sector institution financed by afood products company to beregistered as a Ministry of Health,Labour and Welfare-certified
laboratory. The center’s policy
is to provide food safety andsecurity in Japan and abroad
through analysis and testing.

Health
健 康

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Products and services that
support consumers’ healthCoke ON Walk

What we are doing
We promote healthier living by supporting efforts
to reduce the incidence of lifestyle disease andraising awareness of proper hydration.
We comply with international standards andlocal laws and regulations within our value
chain, which extends from raw materials
procurement to delivery of products to
consumers, and engage in rigorous quality
control to ensure delivery of safe,
trustworthy products.

Coke ON is a smartphone appthat enables consumers tocollect one stamp for eachbeverage purchased atcompatible vending machines
and then receive a drink
voucher when they havecollected 15 stamps. The app
now features the Coke ON
Walk function, which enables
consumers to collect stamps
for achieving certain walking
targets. Through rewards forreaching cumulative stepgoals and special events, wehelp consumers develop
healthy habits.

Mocktails
We are expanding the ways in which we can support avariety of consumer lifestyles by proposing a range ofmocktail (non-alcoholic cocktail) recipes for theenjoyment of people who do not drink alcohol.

The CCBJH
Group’s CSVCOLUMN

CSV
優先課題
CSVPriority

CSV Progress
ReportCCBJH Group
Information

Q’SAI CO., LTD.

“Enjoy Walking until 100
Project”

The average life expectancy in Japan is 81 years for men
and 87 years for women. It is said that a healthy life
expectancy, the number of years that a person can expect
to live independently in full health, is 10 years shorter thanthat*. Q’SAI holds various events to motivate people tothink about healthy life expectancy with the aim ofextending it to the age of 100.
In April 2018, Q’SAI held the Ashiyu Café and Nikkori
Walk events at Maizuru Park in Fukuoka’s Chuo Ward aspart of the month-long campaign for the Q’SAI Enjoy
Walking until 100 Project. At Ashiyu Café, participants
relaxed and enjoyed samples of kale juice and other healthy
drinks, as well as sweets made using kale powder, while
soaking their feet in a warm footbath. As part of the Nikkori
Walk event, an instructor led a class on stretching before
and after the walk, and participants of all ages had fun
while learning how to improve their health.
* Life expectancy: Ministry of Health, Labour and Welfare “AbridgedLife Tables for Japan 2017”
Healthy life expectancy: Ministry of Health, Labour and Welfare
data from the “11th meeting of the committee for Health Japan 21(2nd term)”

We provide products and services
adapted to customers’ diverse
situational needs in an extensive andvaried product line-up.

Main health-related initiatives

https://en.ccbji.co.jp/
csv/quality/

Enjoy Walking until 100 Project (in Japanese only)

https://100aru.com/

15

Contents

Open communication andcorrect information
In the Coca-Cola system, we strive to provide
easy-to-understand product information to
consumers so they can manage their healthand choose the beverages best suited to theirindividual needs. This includes productexplanations on our website and calorie
information on the front of nearly all Coca-Cola
Company products*.
Furthermore, CCBJI conducts programs
for local community residents in order to help
support active, healthy lives and lifestyles
through beverages.
* Front-of-package calorie information is not provided for fountainbeverages (including products for in-cup vending machines anddispensers), returnable bottles, powdered products, diluted products,
or water (non-sugar and unflavored).

Corporate Philosophy
THE ROUTE

The CCBJH
Group’s CSV

CSV Progress
ReportCCBJH Group
Information

Hydration seminars

Drink Education seminars

There has been an increase in heatstroke and other
health incidents related to high temperatures andhumidity in recent years, and proper hydration during
daily life and recreational activities has become more
important than ever. Since we manufacture and sell
beverages, we work toward the prevention ofheatstroke through providing hydration seminars forschools, various organizations, and companies. At
these seminars, we communicate the importance of
hydration and replenishing minerals, and the basics ofpreventing heatstroke.
In 2018, we held 44 hydration seminars, which wereattended by around 7,000 people. Participants indicatedthat they had learned when to effectively hydrate andnow understood the need to hydrate frequently. We willcontinue to communicate information about proper
hydration to as many people as possible and contributeto the prevention of heatstroke and related incidents.

In addition to
hydration seminars,
we have begun
holding Drink
Education seminars
to familiarize people
with beveragecategories and how
to select the
products best
suited to specificoccasions andcurrent physicalcondition. In 2018, we held summer school programs,
which involved Drink Education seminars and plant
tours, at our plants in Zao, Tama, Tokai, and Kyoto.
Some 1,600 students and their guardiansparticipated.
At the seminars, we explained the differences
between FOSHU and Foods with Function Claims,
since these categories are sometimes confused, as
well as how to read packaging labels in order to findhelpful information, such as ingredients, nutritional
content, calories, and expiration dates. Participantscommented that they had learned how to selectbeverages suited to their circumstances and that theywant to apply what they learned in their daily lives.
We will continue to provide beverage information
and actively assist our consumers in selecting the
products best suited to their lifestyles and needs.

Front of package

Back of package

Number of
hydration seminars

Number of
seminar participants

44

Approx.

(+1 1 year on year)
Source: Coca-Cola JourneyTop
Message

Number of
Drink Education
seminars

7,000

24

(approx. +2,000
year on year)(introduced in 2018)

Number ofparticipants inthe seminar

Approx.

1,600(introduced in 2018)16

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The CCBJH
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Environment

Aiming to Realize a “World Without Waste”
FeaturedTopic

The CCBJH Group considers empty bottles an important resource, not waste, andpromotes their collection and recycling. In recent years, the Coca-Cola system has used its
role as a beverage industry leader to engage in initiatives to help solve social issues, suchas the problem of plastic waste in oceans and rivers.

2030 Packaging Vision
In January 2018, the Coca-Cola system in Japanannounced its 2030 Packaging Vision, based on the global
initiative to realize a “World Without Waste” announced
by The Coca-Cola Company in 2018. As a member of the
Coca-Cola system, the CCBJH Group will further accelerate
its initiatives to realize the 2030 Packaging Vision.

Three core elements ofthe 2030 Packaging Vision

1

Whenever possible, avoid using non-renewable,
petroleum-based raw materials for PET bottles.
Promote the use of recycled PET resin or plant-based
raw materials, aiming for, on average, 50% or more ofeither in each PET bottle.

2

Help achieve even further improvements to recycling
rates and PET bottle/aluminum can collection in
Japan by collaborating with national and local
governments, the beverage industry, and local
communities to build and maintain a more robust
packaging collection and recycling scheme. Aim tocollect and recycle an amount of packaging
equivalent to the volume used for Coca-Colaproducts sold in Japan.

3Help keep communities looking beautiful throughcleanup campaigns and actively participate inawareness activities related to plastic waste in oceans
and rivers.

Collaborative initiatives with thebeverage industry and other stakeholders
CCBJI endorses the Soft Drink
Business Plastic Resource
Reclamation Declaration,
announced in November 2018 by
the Japan Soft Drink Association
with the goal of achieving the
100% effective utilization of PET
bottles by fiscal 2030, and iscooperating on initiatives withothers in the industry. For one
such initiative, as of May 2019,
CCBJI had attached approximately 100,000 industrydesigned consumer awareness stickers to vending
machine recycling bins in the Tokyo metropolitan andKeihanshin areas.

Beach cleanup in Suma
In April 2018, employees andtheir families participated in acleanup at Suma Beach as partof addressing the problem ofplastics in oceans and rivers. It
was an excellent opportunity forthe participants to learn thatbeaches are littered with trashthat has drifted ashore or been
tossed there, and to think about
this social problem as personaland closely connected to their own well-being.

Background: Key Societal Issues

Global focus on plastic waste
in oceans and rivers
Large quantities of improperly disposed plastic waste andother trash are flowing from rivers into the world’s oceans
and having an enormous impact on marine ecosystems.
PET bottles, when properly handled, are a recyclable
resource, so the CCBJH Group supports recycling initiatives
aimed at keeping the environment healthy.

Collaborating with students
Members of the Coca-Cola system are always looking toengage in various projects in cooperation with students
and private organizations. One such project is thedesign and development of recycling bins that will
increase the accuracy of sorting collected recyclables.
Before the demonstration of these new bins, we met
with Mr. Ryobun Santo from the NPO, Think the Earth.
Mr. Santo commented,“I hope that something likethis new initiative, whichbrings together corporations
and classrooms, will becomea catalyst to change theworld and contribute tostudent motivation andconfidence.”

Mr. Ryobun Santo
Nitobe Bunka Academy and
NPO Think the Earth17

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18

Environment

Water Resource Conservation

Background: Key Societal Issues

Since our business relies on the use of water, an indispensable natural resource,
we engage in initiatives to return to nature the volume of water equivalent to what we
use in the manufacturing of our products. In 2016, we achieved our original goal of
returning to nature an amount of water equivalent to 100% of that used at our plants(total plant amount). In 2018, we increased that amount to 277%.

FeaturedTopic

Assess water source
vulnerability
Draft and execute water
resource conservation plans

World water demand willrise significantly by 2030
Population increase and climate change in recent years has
led to emerging global water risk. The Organisation for
Economic Co-operation and Development concluded in an
investigative report that there will be a large increase inglobal water demand and severe water scarcity by 2030.
Water issues on this scale require international cooperationand swift action to be solved.

Water used for manufacturing

13,998,107 m

3

Water used for
manufacturing(–7.30% year on year)

Reduce & Recycle

Plant

Water used in products

4,196,810 kL

Water usedin products
Reducewater used

Water conservationagreements with local
governments in water
resource areas

Water
reuse

Proper water
treatment

Replenish(+1.12% year on year)

Water usage
per liter of product(WUR: Water Use Ratio)

3.34 L/L

Forest preservation,
undergrowth thinning, tree planting,rice field flooding, andgrassland regeneration activities(improved 8.33% year on year)

CO2 absorbed
by forests
Increase groundwater
recharge capacity,
cultivate undergroundreservoirs, andreturn water to nature

Natural water resource area

The Coca-Cola system’s water cycle
Within the Coca-Cola system, we regularly assess thevulnerability of water sources in line with the resource
conservation guidelines established by Coca-Cola Japanand we develop conservation plans for the water we use at
our plants. These plans are the basis for our activities that
focus on reducing the amount of water used in the
manufacturing process, recycling what water is used in
manufacturing, and replenishing water resource areas.
The water we use is classified into two major
categories: water used for manufacturing, and water usedin products. The water used for manufacturing—specificallyfor rinsing and cooling—is collected, processed, and thenreused. After proper treatment, it is eventually discharged
into rivers. For the water used in products, we work toreturn its equivalent to nature by contributing to better
groundwater recharge capacity through activities that
include planting trees, thinning forest undergrowth,flooding rice fields, and regenerating grasslands, as well as
by cultivating abundant underground water reservoirs.

Corporate Philosophy
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Contents

Aiming for 100% replenishment at each plant
At each plant, we have made long-term agreements with
regional bodies, including forest cooperatives andlandowners, and are carrying out activities to conserve water
resource areas in order to achieve a 100% replenishment rate*
for the water used in our products.
Our forest preservation activities are centered on
cultivating abundant underground reservoirs within the
CCBJI water resource forests, which cover a total of 6,974
hectares. The current focus of these activities is to increase
the efficiency of groundwater recharge capacity and to aid
carbon capture, which is the absorption and storage of CO2
by trees and other plants.
We also want to increase awareness regarding theimportance of conserving water resources and our efforts
toward that goal, so we hold activities through the Coca-Cola“Learn from the Forest” project for people in the communityand our employees and their families to participate in.

Production
plantsWater
sourcearea

Water
replenishment
area

Replenishment
rate

A

2 35 ha1 1 7%

B

1,54 5 ha

1 58%

C

1,000 ha366%

1,4 76 ha

670%

1

Zao Plant

2

Saitama Plant

3

Iwatsuki Plant

4

Ibaraki Plant

5

Ebina Plant

D

6

Tama Plant

E

7

Hakushu Plant

F

8Tokai Plant

G

14

O

Approx.

6,974 ha(+391 ha year on year)* Replenishment rate (%) =Water resource area
(Goal achieved)

Plants with 100%
replenishment

14/ 17(+2 year on year)

Replenishment area (ha) × 10,000
× Precipitation (m) × Recharge
Production output (kL)A

Water resource area
(Pursuing goal)

1

F
J

G

I
10

6
D

7

3 4
5

L

N

17

In October 2018, we signed a new
agreement for forest conservation with
Saga Prefecture, Tosu, and Kiyama (cities
in Saga Prefecture) and the Saga Eastern
Forestry Association.

9

Production
plantsWater
sourcearea

Water
replenishment
area

Replenishment
rate

Kyoto Plant

H

307 ha281%

10 Akashi Plant

I

11

Daisen Plant

J

427 ha1,01 1%

12

Hongo Plant

K

7 13 ha

1,125%

13

Komatsu Plant

L

146 ha400%M

451 ha192%

14 Tosu Plant

× 100

2

E

8

H

16

(+2% year on year)

19

100%

K
13

15

CCBJH Group
Information

Replenishment
rate of 100% or more

9

M

CSV Progress
ReportC
1 4 2 ha11

Replenishment rate

Replenishment
area

The CCBJH
Group’s CSV

B

12

277%

Top
Message

15

Kiyama Plant

16

Kumamoto Plant

N

328 ha363%

17

Ebino Plant

O

203 ha506%

CSV Priority

Environment

Contents

Corporate Philosophy
THE ROUTE

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Message

The CCBJH
Group’s CSV

CSV Progress
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In order to contribute to the creation of a sustainable society, we must balance both business growth and the reductionof environmental impact. Since our business deals primarily in consumer goods, we pursue waste management andrecycling initiatives, and all our business locations—including offices, manufacturing plants, and sales centers—operate
under ISO 14001, comply with laws and regulations, and target the reduction of environmental impact.

The CCBJH Group’s primary environmental data
Category

Raw materials
Packaging
Water used for manufacturing
Consumption ratios

What we are doing
We use water, one of our most precious
resources, in a responsible manner throughout
our business activities, and work to conserve
our sustainable water resources.
As part of our efforts to help mitigate
climate change, we monitor theenvironmental impact of our corporate
resources in order to help realize asustainable society.
We plan to reduce product packaging,as well as continue recycling efforts
for items such as empty containers
and vending machines.

20

Manufacturing

Logistics
Energy use

Offices

Sales
Manufacturing waste

Greenhouse gas (CO2 ) emissions

Retrieval and recycling

Vending machine recycling

Main environment initiatives

Environment-friendly vehicles

http://en.ccbji.co.jp/
csv/water/

Number of CFC-free vending machines

Sweeteners, coffee beans, tea leaves, milk, etc.
PET bottles, cans, cardboard, etc.
Water used per 1 L of product
Energy used per 1 L of product
Electricity
City gas
Liquefied natural gas (LNG)
Liquefied petroleum gas (LPG)
A-grade diesel
Gasoline
DieselNatural gas
LPG
Electricity
City gas
LPG
Gasoline
DieselKerosene
A-grade diesel
Electricity (vending machines, etc.)
Total amount
Recycled amount
Manufacturing
Logistics
Offices
Vending machines
Steel cans
Aluminum cans
Glass bottles
PET bottles
Paper, cardboard, etc.
Number of machines processed
Hybrid (gasoline or diesel)
Natural gas
Electric vehicles
Clean diesel

2018

439
354
1 4,07 1
3.34
0.89329, 1 2 1
48,7 1 0
1 1 ,547
1 43
2,4 1 4
1 3,29 1
56,22555
548
59,36 1
1 50
237
91
40
13
0.2
700,396
1 08,239
1 07, 1 24
280
1 80
27
295
8,826
1 7,960
1 2,564
35,90328, 1 63
1 00,869
1 ,488546
25507,309

Unit

thousand t
thousand t
thousand m3
L/L
MJ/L
thousand kWhthousand m3
t
t
kL
kL
kL
thousand m3t
thousand kWhthousand m3
t
kL
kL
kL
kL
thousand kWhtt
thousand t-CO2
thousand t-CO2
thousand t-CO2
thousand t-CO2
t
t
t
t
t
machines
vehiclesvehiclesvehiclesvehiclesmachines

Contents

Working to mitigate
climate change

Decreasein beverage business
CO2 emissions

We believe that sustainablegrowth requires balancing the
reduction of environmental
impact with business growth.
%
We aim to contribute to the(compared to 2010)
mitigation of climate change
by reducing greenhouse gas
emissions across our entire business,
including in the procurement of materials,
production, logistics/transportation, and sales.

-39.32Disclosure of greenhouse gas emissions
We recognize the mitigation of climate change as a
crucial issue to consider throughout the course of ourbusiness activities. As such, we transparently disclose
corporate greenhouse gas emissions, of which CO2 isa primary example, and share information with ourmany stakeholders about the overall state ofgreenhouse gas emissions, the progress ofcountermeasures, and other topics so that this canlead to further emissions reduction.
For information on Scope 1, 2, and 3 CO2 emissions results,
please refer to the link below.
https://en.ccbji.co.jp/csv/water/carbon/emissions.php

Production initiatives
At our plants, we are actively
adopting new processes
and the latest technology
for improving energy
efficiency. We are striving
to reduce the greenhousegases produced and fuel oil
used in our manufacturing

2018 EUR(Energy Use Ratio)
per liter of product0.89 MJ/L(-0.97% year on year)

Corporate Philosophy
THE ROUTE

Top
Messageprocesses through measures such as introducing
cogeneration systems that can create both electric
power and heat from a single energy source, installinginsulation and heat exchange systems that caneffectively keep energy losses to a minimum, andconverting from the use of fuel oil to natural gas.

The CCBJH
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Peak shift vending machines: cooling beverages
at night to avoid electricity use at peak times
Period of high andpeak electricity demand*2

Electricity
demand*1

Logistics and transportation initiatives
Our logistics divisions are implementing transportation
efficiency improvements by accelerating the use oflarger vehicles in order to improve load ratio and bycontinuing to utilize modal shift in transportation. In
addition, we are undertaking greenhouse gas
emissions reduction throughout the Group by
improving the efficiency of shipping routes to ourbusiness partners; rigorously implementing ecodriving; increasing the replacement of existing fleet
vehicles with electric, hybrid, and other fuel-efficient
vehicles; and switching to the use of smaller vehicles
for sales representatives.

Sales initiatives
To reduce the energy consumption and CO2 emissionsof our vending machines (including coolers and drink
dispensers), we continuously work toward thedevelopment and introduction of new equipment.
Our “peak shift” vending machines, which wehave been deploying since 2013, shift electricity
consumption used for cooling to nighttime, which can
reduce power consumption during peak daytime
hours by a maximum of 95%. The energy-saving
specifications of these machines allow them toprovide cold products 24 hours a day, even if thepower for cooling is completely stopped for as long as
16 hours.
We are also progressing with our plan to eliminate
the use of chlorofluorocarbon (CFC) refrigerants in
our vending machines.

Peak shift
vending
machineelectricity
use

CoolingON

0:00

Cooling
OFF*3

7:00 8:00*1

22:00 23:00

Power company power consumption rates on days with the highest demandin summer 2012.
Source: Compiled from published data of power companies.
*2 This refers to “time periods for eliminating fluctuations in electricity demand”
designated in the revised Act on the Rational Use of Energy, which went into
effect in April 2014.
*3 Standby power consumption required for the sale of products occurs even if thecooling system is shut off during the day. Depending on location, peak shift
vending machines may be set so that the cooling system is shut off at night andcooling takes place during the day. The cooling system may also operate during
the day after products are restocked.

CFC-free vending
machine ratio

Approx.

78 %(+10% year on year)

Number of
CFC-free vending
machines, including peakshift vending machines

Approx.

507,000

21

Contents

Building a recycling-oriented
society
We strive to reduce environmental impact bycollecting and recycling as much as possible of thewaste generated throughout a product’s life cycle.
Through various initiatives such as reducing waste
generated by production, using inventory controls
to reduce product disposal, making containers
easier to recycle, and using environment-friendly
containers, we are contributing to thedevelopment of a sustainable society.

Recycling waste materials

Corporate Philosophy
THE ROUTE

99.1 1* Food scraps that become feedstuff for animals. The Japanese Ministryof Agriculture, Forestry and Fisheries is actively promoting eco-feed toincrease the self-sufficiency rate for feedstuff.

The CCBJH
Group’s CSV

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Increasing sustainable packaging

Bottle-to-bottle recycling

Under the shared global concept of sustainable
packaging, we develop and use packaging within the
Coca-Cola system that is specifically designed to beenvironment-friendly and also easy to use. We haveintroduced packaging like the ecoru shiboru bottle,
which is easy to twist and flatten after drinking, toreduce both environmental impact and energy use.
By the year 2030, we are aiming to eliminate nonrenewable petroleum-based raw materials wheneverpossible from our PET bottles. We will pursue the useof recycled PET resin and plant-based raw materials,
with the goal of using, on average, 50% or more ofeither in each PET bottle.

As a part of achieving the aims of The Coca-Cola
Company’s “World Without Waste” global initiative,
we are taking part in the bottle-to-bottle recycling
project to convert used PET bottles into productready PET bottles. Bottle-to-bottle recycling makes it
possible to manufacture PET bottles with a lower
environmental impact.

Recyclingrate of waste
At our plants, we sort andfrom plants
recycle waste materials
Approx.
generated by production tocontinuously achieve zero%waste emissions (a waste(-0.83% year on year)
material recycling rate of over
99% at all 17 plants). Coffee
grounds and tea leaves constitutethe bulk of our generated waste materials, and wehave achieved 99.88% and 100% recycle rates forthem, respectively, as fertilizer or animal feed.
For example, the used tea leaves that result fromthe production of Sokenbicha at the Zao Plant are
combined with byproducts, such as leftover wheyfrom the manufacturing of cheese at the Zao Dairy
Center, and used as “eco-feed”* for Zao Sosei beef
cattle. Working with the local government andmembers of academia, the Tokai Plant also plans topursue research into a way to efficiently use coffee
grounds and tea leaves.

Top
Message

FromtobottltetleboLabel removal
and plastic
granulation

Twist

The bottle
is cut into
about 8 mm2
flakes

Cap removal
The flakes are sorted
based on density, andthe cap plastic is removed
by using the differencein buoyancy

An ecoru shiboru bottle, which iseasy to twist and flatten

Washing
The flakes arecleansed in order toremove impurities

PET bottle
raw material

Formed into brand-new bottles!
Source: Coca-Cola Journey

22

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23

Community

Welcoming Consumers from Overseas
FeaturedTopic

As the number of tourists and foreign residents in Japan has increased in recent years,
the CCBJH Group has been taking part in business initiatives for the development ofregional areas. We are also promoting the Olympic Movement in advance of the Olympic
Games Tokyo 2020. This currently includes measures to help international customers
conveniently purchase products they trust.

Providing multilingual POP
communication materials
We have prepared multilingual POP materials (in-store
supplementary materials) to help consumers from manynations conveniently purchase products they trust.
Coordinating with our business partners, we will offer
materials at restaurants so that consumers from overseas
can easily order and enjoy Coca-Cola products. On our
vending machines, information is also displayed in multiple
languages and, with the help of a smartphone, productinformation can be accessed in up to 15 languages.
We aim to expand the number of multilingual vending
machines by 2020.

Background: Key Societal Issues

Toward a future ofmulticultural coexistence
Given the outlook for long-term population decline inJapan, the Japanese government has strengthened
policies that support the acceptance of foreign nationals insociety. In addition, an increase in the number of foreign
visitors to Japan is expected ahead of the Rugby World
Cup 2019 and the Olympic Games Tokyo 2020. Multilingual
support on vending machines and elsewhere is necessary
to eliminate inconvenience for people whose native
language is not Japanese.

Popularization of JOC Olympic
support vending machines

Development of visitor-friendly
vending machines
Previous vending machines were not designed in a waythat took the needs of non-Japanese consumers into
consideration, even in locations with many tourists.
Accordingly, we developed a vending machine that makes
it easy for consumers from overseas to select and purchasebeverages. We installed the first such machine in Asakusa,
a historic district that attracts many overseas visitors.
These vending machines are covered in appealing,original Japanese-style art and display informationin multiple languages. The product line-up includes
Coca-Cola and Fanta, brands familiar to overseas
consumers from many countries, as well as beverage
flavors that are exclusive to Japan. Information can also beviewed on local tourist attractions by scanning a QR code,
which was added to help consumers have an even moresatisfying experience.

As part of providing support for athletes aspiring tocompete in the Olympic Games Tokyo 2020 and as anotherway to promote the Olympic Movement, the Coca-Colasystem members are working to install and popularize Japan
Olympic Committee (JOC) support vending machines.
A portion of the proceeds from JOC Olympic support
vending machines isdonated to assist
athletes through the
JOC. By the end of
2018, 2,068 machines
had been installed inour sales area.

CSV Priority

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FeaturedTopicContents

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CSV Progress
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through Sports

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24

Background:
Key Societal Issues

Concern over children’s
decreasing health andfitness in Japan
In a time of significant change to
how children live and form lasting
habits, opportunities for daily
physical activity, through playing
outside or sports, are decreasing,and it is said that physical fitness
and athletic ability in younger
generations is declining.
Decreased physical fitness intoday’s children could eventuallymean a decline in the fitness ofthe entire population and there isconcern regarding the effect ofthat on Japan in the future.

The CCBJH Group aims to create shared value bycontributing to the revitalization of regional economies
through business, while also staying mindful of community
issues and undertaking a wide variety of specific support
activities. In particular, we manage two corporate sports
teams, the Coca-Cola Red Sparks men’s rugby team andthe Coca-Cola Red Sparks women’s field hockey team,
who not only deliver game-day thrills to a large number of
local fans but also create opportunities for kids to be active
and improve their skills in a safe way through educational
sports clinics. Both teams are also proactive participants inlocal events as part of building vibrant communities and asociety in which everyone can live healthy and active lives.

Principal community activities in 2018

Coca-Cola

Coca-Cola

Red Sparks rugby teamRed Sparks field hockey teamHeld 12 sports clinics with a total attendance of 1,280 participants
Held 16 rugby classes with a total attendance of 2,440 participantsParticipated in the Love Earth Cleanup 2018 in Fukuoka City
Participated in the FOR CHILDREN Japan Rugby Top League
charity activity (Fukuoka Children’s Hospital visit)
Participated in the 2018 Hokkaido Eastern Iburi Earthquake charity
mochi-pounding event

Held 4 sports clinics with a total attendance of 220 participants(Aichi, Kanagawa, Kyoto, and Nagasaki Prefectures)
Held 6 field hockey classes with a total attendance of 475 participantsParticipated in LECT sports event (talk show, field hockey experience)(Joint event with the Hiroshima Izumi Maple Reds handball team in a shopping center)

Participated in the Hiroshima Zero Litter & Clean Walk Campaign
Participated in the 38th Hiroshima International Peace Marathon

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The CCBJH
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Plant tour initiatives

Environmental education programs

CCBJI considers plant tours a method of directcommunication with stakeholders, especially consumers
and business partners. We offer tours of the Zao Plant(Miyagi Prefecture), Tama Plant (Tokyo), Tokai Plant (Aichi
Prefecture), Kyoto Plant (Kyoto Prefecture), and Ebino
Plant (Miyazaki Prefecture). Around 167,000 visitors toured
these plants in 2018. In order to remain a trusted partner toour stakeholders, CCBJI will continue to communicate
information in an easy-to-understand manner about its
activities and The Coca-Cola Company’s production
processes and food safety initiatives, so that consumers
can feel confident in choosing The Coca-Cola Company’s
products.

We hold environmental education programs invarious locations in order to raise awarenessabout the importance of conserving water andpreserving nature.
In 2018, local community members andemployees participated in water conservation
activities in 13 of our plants’ water source areas
through the Coca-Cola “Learn from the Forest”
projects. At Coca-Cola “Learn from the Forest”
projects held in May and September in
Nakanohou, Gifu, a total of 112 employees andtheir family members thinned forest undergrowth,
helped plant rice fields, and tried woodworking
while learning about the indispensable nature ofwater resources.
We also contribute to the healthy physical andmental development of youth by providing aplace to experience farming, nature, andcommunal living through supporting the NPO
Ichimura Nature School. In 2018, during an
8-month period, 58 elementary school (from 4th
grade) and junior high school students (up to the
2nd year) spent their weekends learning
leadership skills in a natural setting in Tosu, Saga
Prefecture. The program has received acommendation from Saga Prefecture and won
acclaim from those in the community and beyond.

We help address local community issues
through encouraging interest in sports andthe arts and through supporting the healthy
development of young people.

COLUMN

What we are doing

Contents

We strive to be a trustworthy partner tostakeholders of all generations by conveying
information about our production processes
and food safety initiatives in an easy-tounderstand manner through our plant tour
programs.

In March 2018, with the cooperation of students fromthe Kyoto University of Foreign Studies, we held the“Let’s Enjoy the Environment in a Foreign Language 2018”
event at the Kyoto Plant. Parents and children learned
about environmental problems while becoming familiar
with English, through a fun program consisting of a skit,a filtration experiment, and other activities devised by
the university students.

We engage in various community
initiatives at our plant!

Let’s Enjoy the Environment
in a Foreign Language 2018

Along with creating emotional
connections through our company sports
teams, we develop activities specific tolocal regions, and contribute to thehealthy development of children andvibrant local communities.
Main community initiatives

https://en.ccbji.co.jp/
csv/township/Children helping to plant rice
fields at a Coca-Cola “Learn
from the Forest” project

Ichimura Nature School
students harvesting their own
vegetables

25

Contents

The CCBJH Group believes that thriving
communities are a prerequisite for sustainablebusiness activities and conducts a wide range ofsocial activities in local communities based on
this belief. Through our core business, we engage
in activities such as supporting food banks andcollaborating with local governments onagreements to supply drinking water toemergency shelters during disasters. By being
involved in these ways, we are forging deeper ties
with the community and expanding relationships.

Donating products through food banks
A food bank is an initiative or group that provides
food—which was disposed of but is still fit for
consumption—to people and organizations in need.
We have entered into partnerships with food banks
such as Second Harvest Japan, which was the firstfood bank in Japan and is a member of the Allianceof Japan Foodbanks, and the Food Bank All Japan
Association, to carry out initiatives regarding food
donations. In 2018, we started donating to new foodbanks in Osaka and Kagoshima prefectures andsupplied beverages through 18 organizations toapproximately 1,100 institutions including social
welfare facilities and facilities that provide meals forchildren with busy or absent parents. Because wewant to help in any area that we can, while also
ensuring our reduction of wasted stock, we arecontinuing to develop our product donation activities.

Top
Message

Regional contributions using vending machines
In preparation for large-scale disasters, the CCBJI
Group has entered into agreements with local
governments within our distribution area to provide
emergency supplies during a disaster. In addition togiving priority to the supply of drinking water to

COLUMN

Contributions to local
communities through businessCorporate Philosophy
THE ROUTE

The CCBJH
Group’s CSV

CSV Progress
ReportCCBJH Group
Information

emergency shelters during a disaster, the Group
provides beverages, free of charge, from vending
machines at city offices and schools. At the end of
2018, we had made agreements with 586 local
governments.

CCBJI Main Plant (Mihara City, Hiroshima Prefecture)

What actions did CCBJI take during the torrential rains in 2018?

In July 2018, Japan was struck by aconcentration of torrential rains,
especially in western Japan, which
inflicted damage on many facilities
including those of the CCBJI Group.
During this natural disaster, CCBJI put
its business continuity plan (BCP) into
action. While quickly establishing aframework for restoring its main
operations and collaborating withrelated divisions, CCBJI moved forward
to systematically deploy the necessary
corporate resources.
As the record rainfall continued, anearby river’s banks overflowed andinundated the Hongo Plant, halting
operations at manufacturing facilities
and automated warehouses. As theimpact spread, affecting plants,
warehouses, and the logistics function
for the region, the first action was toput in place an emergency response
headquarters. We simultaneously set up
a response office on-site and, the very
next day, dispatched managers fromthe HR, General Affairs, and SCM
functions to coordinate actions at theplant. CCBJI also began to provide foodand personal necessities to employees.

The rain had caused damage to thehomes and vehicles of many employees
and because of the time it took for the
power and water supply to be restored,
it was more than a week before
employees were able to return to work.
During the intense heat of summer,
while exercising proper precaution
against heat exhaustion and serious
injury, employees rallied together tocarry out the restoration work.
Furthermore, because the water supply
to the surrounding area was interrupted
for an extended period of time,
manufacturing water that remained in
the supply tanks and emergency water
delivered from nearby plants was
distributed to people in the neighboringareas, and CCBJI provided a location
for the Japanese Self-Defense Force to
set up the water distribution center.
Damage to equipment, otherproperty assets, and inventories, alongwith disruptions to the transportation
network, had a major impact on productsupply and distribution. There was anincrease in demand due to a heat wave,
which caused continual productshortages. We visited our business

partners to explain the difficult situationand gain their understanding, but wealso put together a support networkthat allowed us to distribute products
from other areas of the country.

Providing local residents with water for their
daily lives

Employees hard at work on the restoration

26

Contents

Customer
Satisfaction

Corporate Philosophy
THE ROUTE

Top
Message

The CCBJH
Group’s CSV

Realizing customer satisfaction
The Customer Contact Center, which
operates under the slogan “Goodcustomer contact makes everyone
happier,” is the point of contact for all
customers of the CCBJH Group. We
have put in place a system by which
the center receives opinions andrequests from customers and promptly
relays their content to regional
representatives, who can respondswiftly. The center’s Voice of Customer (VOC) section shares opinions, requests,
complaints, and other feedback received from customers within the Group to
inform initiatives aimed at improving products and services. We comply with
ISO 10002 (JIS Q 10002)*, which covers the handling of customer complaints,
throughout our customer response processes and management system.

Customer satisfaction initiatives

https://en.ccbji.co.jp/
csv/customer/

For our customers
In accordance with our corporate philosophy, THE
ROUTE, at CCBJH Group we focus on all our consumers
and customers to become their trusted partner. The
Customer Contact Center plays a central role indeveloping processes with which to meet the
expectations of our customers.

*A standard issued by the International Organization for Standardization (ISO) that provides guidance on theprocess of handling complaints related to products and service quality. ISO 10002 does not involve thirdparty certification. While any organization can self-evaluate its compliance, Coca-Cola system members inJapan declare their compliance after receiving an independent compliance audit.

Customer response process
Coca-Cola Japan

Inquiries/complaints

Customers

VOC section

Regional sales
representative

Improve/remedy products and services

Complaints

Inquiries

17%

83%

CCBJH Group
Information

Effective response tocustomer complaints
We conduct questionnaires for
consumers who have lodged
complaints, and provide surveys toevaluate the quality of our customer
response and consumers’ intention
to purchase Coca-Cola products inthe future. For many consumers
whose complaints have beenaddressed, their interest inpurchasing Coca-Cola products
remains unchanged or evenincreases according to our survey.

Consumerwillingness torepurchaseCoca-Cola
products

89%

Customerfeedback

AnalysisCountermeasures/
discussion
Development/
improvement/remedy

Combines those who answered that their
desire to repurchase was unchanged, had
increased, and was unchanged plus theywould recommend the products to others
Survey method: A questionnaire via SMS text
message sent to consumers who had lodged
complaints (Survey period: March to
December 2018)

Customer Contact Center initiatives
Products &containers

9%

Machinery
Advertising& services

Products &containers

44%

7%

Machinery

1 4%

1%

Advertising& services

1 4%

Other

1 1%

VOC

27

Relevant
departments

Investigation
Cooperation

Respond

Customer consultation by topic

CustomerContact Center

CSV Progress
ReportTo ensure customer satisfaction, the customer service representatives who answer
telephone calls take care to provide responses that are accurate and attuned tocustomer needs. To increase response quality, the Customer Contact Center has
introduced response quality assessment by an external organization, and eachcustomer service representative is constantly working on skills improvement.

Customerinquiry
response rate

94 %Contents

https://en.ccbji.co.jp/
csv/assurance/

Quality assurance policy
We seek to provide all consumers with safe products
and high-quality services. This goal motivates us
throughout our operations. During the entire processfrom the procurement of materials, throughmanufacturing, logistics, transportation, sales, andservice, we work tirelessly to secure and improvecustomer-centric quality.

Basic principles for quality

1

Each of our departments is aware of its roles
and responsibilities and implements
customer-driven quality control.

2

We will perform our daily work with the top
priority on “quality.”

3

Each one of us keeps in mind and thinks
about “quality” at all times and acts toenhance our brand value.

The CCBJH
Group’s CSV

The KORE management system
for safeguarding quality
In the Coca-Cola system, we manage operations
using KORE (Coca-Cola Operating Requirements),
our globally integrated, unique management
system, and manage product quality underrigorous standards imposed by KORE. KORE
covers a comprehensive range of standards in theareas of quality, food safety, the environment, andindustrial safety and health and is implemented ineach process from procurement of raw materials
to manufacturing, logistics and transportation, andsales, until our products are delivered toconsumers. In addition to meeting therequirements of laws and regulations, andstandards from the International Organization forStandardization (ISO), KORE includes even more
rigorous standards.*
We have a certification organization measureperformance against various requirements at least
once a year as a means of confirming the integrityof operations. Fair and honest management ofoperations within the Coca-Cola system isguaranteed by the addition of evaluation by an
external third party. We rigorously incorporate
KORE management standards in all businessprocesses for which the CCBJH Group is
responsible, and constantly strive to ensure andimprove quality from a customer-centric
perspective.
* Concerning quality, we comply with ISO 9001; concerning foodsafety, we comply with FSSC 22000; concerning the environment,
we comply with ISO 14001; and concerning industrial safety andhealth, we comply with OHSAS 18001 (currently converting to ISO
45001). We have acquired these certifications at all our plants. We
have also acquired ISO 14001 certification at all our sales centersand offices.

CSV Progress
ReportCCBJH Group
Information

KORE Quality Management System

Coca-Cola (Japan) Co., Ltd.

Quality assurance initiatives

Top
Message

Procurement
Raw materials are only sourced fromsuppliers certified by the Global Food
Safety Initiative (GFSI).

Beverage base preparation
Beverage bases undergo strict
quality inspection using the latest
analysis equipment (physicochemical
and microbiology testing, etc.).

Manufacturing
To deliver reliable quality, we
endeavor to ensure product safety
by striving to comply with quality
management systems and improve
our quality management technologies.

CCBJH Group

Quality
Assurance

Corporate Philosophy
THE ROUTE

Logistics and transportation
We ensure careful handling of the
products manufactured at our plants
so that they are delivered in excellent
condition.

Sales (retailers and vending machines)
We work to maintain merchandise
control at retailers and vending
machines to ensure that we provide
consumers with products that arealways safe, trustworthy, and fresh.

Customers
We integrate opinions, inquiries, andother feedback from customers withimprovement activities.

28

Contents

Ethics andCompliance

Ethics and compliance initiatives

https://en.ccbji.co.jp/
csv/compliance/

Ethics and compliance policies
In order to be a sustainable business, the CCBJH Group
must fulfill its social responsibilities and every individual
employee should always act with dignity. As part of this,we have enacted the Code of Business Conduct andEthics, and promote a corporate culture that emphasizes
ethics and compliance.
The Code of Business Conduct and Ethics covers fiveareas: acting righteously with dignity, right conduct,
respect of human rights, dealing with stakeholders, andconflicts of interest. All employees are expected toobserve all laws and regulations as well as the Code,internal rules, and workplace principles. They are also
expected to act with integrity and honesty, to think
before acting, and to seek guidance when in doubt.
WEB

Coca-Cola Bottlers Japan Holdings Group Code ofBusiness Conduct and Ethics

https://en.ccbji.co.jp/vision/pdf/en/
CCBJIgroup_Ethics_en.pdf

WEB

Basic Policy for Suppliers

https://en.ccbj-holdings.com/corporate/
governance/pdf/supplier_en.pdf

Corporate Philosophy
THE ROUTE

Top
Message

The CCBJH
Group’s CSV

CSV Progress
ReportCCBJH Group
Information

29

Ethics & Compliance Reporting Hotline
We have set up the Ethics & Compliance Reporting
Hotline (a dedicated email address and telephone
number), with points of contact in-house and at an
external legal counsel’s office, to accept requests for
consultation about matters that conflict with, or may
conflict with, the Code of Business Conduct and Ethics.
Anonymous consultation is available, and we are striving
to raise awareness of the hotline and create anenvironment that facilitates consultation by a variety ofmeans, such as issuing ethics and compliance bulletinsand posting the hotline points of contact on the Group
intranet. Furthermore, we value the cooperation of
employees who report issues that need to be addressed,
and any form of retaliatory measures against reporting
employees has been made a violation of the Code. We
confidentially investigate any problem requiring
examination under the Code, determine whether there
has been a violation of the Code or laws and regulations,and take any appropriate corrective measures.

Compliance education
The standing CCBJH Group Ethics & Compliance
Committee, which comprises members of the
management team, meets on a regular basis and takes
the lead in promoting activities that further foster andinculcate high ethical standards and complianceawareness among the Group’s employees and encouragea corporate culture that places importance on ethics andcompliance. These initiatives include the implementationof awareness and education activities, operation of the
Ethics & Compliance Reporting Hotline, other responses
to compliance-related incidents, and consideration andimplementation of measures to prevent the reoccurrenceof incidents.

An ethics and compliance seminar

CHECK !
Violations of the Code of Business Conduct
and Ethics

None

Payment of important environmental or
ecological fines or penalties over the
past four years

None

Political contributions

Donations or spending for political activities/groups, lobbyists/lobbyist organizations,trade association, or other tax-exempt groups

None

Risk
Management

Contents

Risk
Management

Corporate Philosophy
THE ROUTE

30

Business Continuity Plan (BCP)
Response to large-area,large-scale disasters

Enterprise Risk Management (ERM)
Formulation of basic policies andprevention of risks

Incident Management &Crisis Resolution (IMCR)
Response to serious incidents or
accidents

Initialresponse
Business
restoration

The CCBJH Group has set up 1) the standing Risk
Management Committee, which formulates basic policies,and deliberates and decides risk prevention activities; 2)
the Crisis Management Committee, which decides andleads the response when a major problem or accident
occurs; and 3) the Disaster Countermeasures Task Force,
which deliberates and initiates the business continuity
plan (BCP) when a wide-area disaster occurs thatsignificantly impacts business activities.
All CCBJH Group companies and departments
implement PDCA cycles and engage in risk prevention
activities. Those responsible for risk management havethe ability to make autonomous decisions and serve as
the Group’s first line of defense. Risk monitoring by thedepartment in charge of ERM*1, which handles theadministrative duties for the committees listed above, isthe second line of defense. Assurance by the internal
audit department is the third line of defense. If an incident
occurs, the Group gathers information and discusses aninitial response and solutions using the Coca-Colasystem’s Incident Management and Crisis Resolution(IMCR) protocols, and the president of CCBJH may
convene the Crisis Management Committee if needed.

CCBJH Group
Information

Crisis Management CommitteeP

ERM lines ofdefenseConsultations on responses
between BCP logisticalsupport team and IMCR teams
Collaboration among
the Coca-Cola system members

Business
Develop
Review departments
risk
activity
prevention
resultsplan

The 1 st line

Implementation of the BusinessContinuity Plan (BCP)

Execute risk
prevention
activities

Confirmation of the safetyof employees
Confirmation of damage status
Establishment of the Disaster
Countermeasures Task ForceIMCR Process

Information gathering
Start disaster recovery support andbusiness recovery

Risk management systems

CSV Progress
ReportRisk Management Committee

Temporary
restorationof business

https://en.ccbji.co.jp/
csv/risk/

The CCBJH
Group’s CSVDisaster Countermeasures Task Force

Emergency response plan (EP*2)

Risk management initiatives

Top
Message

Product supply andmanufacturing processes
Develop demand and production
capacity forecasts, supply anddemand plan, and logistics plan
Order confirmation, shipment, anddelivery within the Coca-Cola system

A
Specifyrisks

C

Initial risk
assessment

Evaluaterisks

Initial response

Risk assessment

D
Implementation ofcountermeasures

Department in charge of ERM

The 2nd line

Internal audit department

The 3rd line

Recovery

List of risks the Company identifies
1 . Risks related to changes in assets
2. Risks related to retirement benefit obligations
3. Risks related to increased costs of raw materials, etc.
4. Risks related to competition and changes in markets
5. Risks related to changes in consumer preferences and health concerns
6. Risks related to economic conditions
7. Risks related to infrastructure investment
8. Risks related to the supply chain
9. Risks related to changes in the retail environment
1 0. Risks related to water resources
1 1 . Risks related to trademarks and trust in brand1 2. Risks related to relevant laws and regulations
1 3. Risks related to alcoholic beverages
1 4. Risks related to tax reform
1 5. Risks related to product safety and quality
1 6. Risks related to business integration
1 7. Risks related to litigation
1 8. Risks related to the business of affiliated companies
1 9. Risks accompanying dependence on The Coca-Cola Company
20. Risks related to weather
2 1 . Risks related to natural disasters
22. Risks related to information security
23. Risks related to securing and developing human resources

ERM Global Workshop
The CCBJH Group, in cooperation with The Coca-Cola
Company, held an ERM Global Workshop led by Mr.
Gerold Knight, Chief Risk Officer of Coca-Cola Hellenic
Bottling Company, for the leadership of Coca-Cola
Japan and the Coca-Cola bottlers in Japan.
Members of the Coca-Cola system confirmed theimportance of routinely engaging in risk prevention,and earnestly and strategically engaging in integrated
risk management.

*1 Enterprise Risk Management: A process used in the overall management of any risk that could occur in the course of business*2 Emergency Planning

Contents

Human Rights
and Employee
Job Satisfaction

Initiatives promoting respect for humanrights and employee job satisfaction

https://en.ccbji.co.jp/
csv/humanrights/

Corporate Philosophy
THE ROUTE

Top
Message

THE ROUTE
We shall set up a remuneration system
according to roles and results and treat
employees fairly and justly.

Basic
policyWe shall set up a remuneration systemthat will lead to the enhancement ofmotivation for frontline employees whooffer value and services to customers.
We shall establish an attractive, careeroriented employee benefit system that
promotes high job satisfaction, free ofworry or anxiety, for members of the
CCBJI Group.

The CCBJH
Group’s CSV

CSV Progress
ReportCCBJH Group
Information

31

The CCBJH Group’s ideal employee image
A person who aims to enhance the corporate value of the
CCBJH Group and is capable of contributing to the achievementof organizational goals through a customer-centric perspective
by being proactive, learning on their own, and continuously
accomplishing self-growth by actively embracing challenges.
MindsetAbilities
Behavior

Accept various opinions and points of view, engage
in constructive discussion, and create new value
Be professional and constantly hone one’s knowledge
and skills
Accomplish duties in a timely manner with sincerity andenthusiasm, and proactively fulfill one’s responsibilities

CCBJI corporate direction

HR system
To foster a consistently fair and equitable system thatbuilds a sense of unity, and to recruit and retain people
capable of promoting overall sustainable growth, the
CCBJI Group has introduced an integrated humanresources (HR) system in terms of job grades,
performance evaluations, compensation, and benefits.
Based on the corporate philosophy of THE ROUTE
and the elements that comprise the Group's direction—
Organize for Growth; Operate as One Enterprise; System
Mindset; Industry Leadership—the Group has set forth abasic policy pertaining to the HR system. Using a rolebased and results-oriented approach, we aim to increase
employee motivation and promote the growth of theorganization and individuals. We also provide employee
benefit programs aimed at enabling employees to feelsecure in pursuing long-term careers with the Group.

HR development
The CCBJH Group conducts various programs that
support employee skills development according to theircareer stage, including four types of training: mandatory,
voluntary, selective, and overseas.
Mandatory training covers the skills necessary toeach level of a position, while voluntary training provides
opportunities for employees who want to boost theircareers by attaining the skills and knowledge needed toincrease their overall abilities. Selective training is fornurturing the next generation of leaders, and overseas
training involves visiting The Coca-Cola Company
headquarters, international bottlers, and foreign markets.
The Group provides correspondence courses ande-learning materials as part of its employee self-study
program, and holds various career-design courses
according to age group. Supervisors and veteran staff
members also conduct daily on-the-job training. In
addition, the Group encourages employees toperiodically discuss their career plan with their manager.

Overseas training

Performance evaluation system
The CCBJI Group’s performance evaluation system has
the twin purposes of improving business results andnurturing employees. The system is built upon evaluating
work-related results and assessing whether daily conduct
matches what is expected of a CCBJH Group employee.
In order to properly evaluate activities and support
employee growth, each employee has discussions
regularly with a supervisor throughout the year to ensurethat he or she understands the content of evaluations. As
employees consistently demonstrate skilled performance,
the company will continue to reward them appropriately.

Contents

Human rights initiatives
Respect for human rights is the foundation of ourbusiness activities. In addition to observing international
human rights principles, which call for the promotion andprotection of those rights, the CCBJH Group has
instituted a human rights policy and engages inawareness activities to contribute to the resolution ofhuman rights issues and establish respect for humanrights in the workplace.
We raise awareness of human rights by holding
human rights meetings in every department of the Group,
and work to both ensure correct understanding ofgeneral human rights problems and foster a culture that
respects diversity through sharing information via levelspecific training, e-learning, and the company intranet.
We aim to create a vibrant and healthy workplaceenvironment by cultivating employees who think ofhuman rights issues on a personal level, are considerateof others, and are capable of viewing situations fromother perspectives before taking any actions.

Occupational safety and health initiatives

Top
Message

In cooperation with our health insurance association,
we strive to prevent the onset and aggravation ofillnesses and to help maintain the physical and mental
health of employees. For employees who actively seek toimprove their health by changing their lifestyles, we have
set up an internal health office to analyze the results of
employees’ physicals and stress checks jointly with ourhealth insurance association. From these results, we areconstructing our own scientifically based health risk
management system. We are supporting the health ofeach employee through internal health business initiatives.

The CCBJH
Group’s CSV

CSV Progress
Report32

Medium- to long-term vision for diversity

Under diversity and inclusion policies,
the CCBJH Group aspires to be a strongly
competitive company that functions withexcellence and dignity by utilizing diversity forinnovation and reform.

Women inactive roles

CHECK !
Lost Time Incident Rate (LTIR)CCBJH Group
Information

Short- andmedium-term
initiatives

0.23

Diversity and inclusion initiatives
The CCBJH Group has established a policy on diversity
and inclusion based on the corporate philosophy of THE
ROUTE. It engages in diversity initiatives to promote theacceptance of diverse views and values, without regard
to individual attributes, in order to produce further
innovation. The Group also seeks to implement stronger
diversity management under an international
management structure that includes three female
directors.
Our activities for the medium- to long-term period
will focus on expanding opportunities for women andpeople with disabilities. We will also provide opportunities
for LGBTQ employees, seniors, and foreign workers, andcreate a workplace environment that enables employees
to demonstrate their full potential through varying andmore flexible work styles, including programs that
support various types of work-life balance and telework
opportunities.

Foreignworkers inactive roles

Long-term
initiatives
LGBTQ
employees
in activeroles

Respect
for humanrightsPeople withdisabilities in
active roles

Seniors inactive roles

Selection as a 2019 Semi-Nadeshiko Brand
Since 2012, the Ministry of Economy, Trade and Industry
and the Tokyo Stock Exchange have selected listedcompanies—those that make outstanding efforts toencourage women’s success in the workplace—forrecognition as Nadeshiko Brands. In 2019, CCBJH and
CCBJI were selected as SemiNadeshiko Brands, companies
recognized for efforts nearly
equivalent to those of
Nadeshiko Brand companies.

semi

Based on the philosophy that “health and safety comefirst,” protecting the safety and health of all CCBJI
Group employees, creating vibrant workplaces,
enhancing productivity, and fulfilling corporate social
responsibility form the Group’s foundation for business
continuity. The Group works to create and nurture aculture of safety based upon mutual trust and by putting
principles into practice.
To prevent emergencies and accidents, we rigorously
engage in occupational injury management and vehicle
accident management under the key concepts ofeliminating unsafe behavior and eradicating unsafe
situations. We will improve overall workplace safety
awareness and inform every employee of safe behaviors
and safe driving practices, and work toward achieving
zero emergencies and zero accidents at each workplace.

Corporate Philosophy
THE ROUTE

Contents

Human Rights and Employee Job Satisfaction

Roundtable Discussion:

Smart Work

Corporate Philosophy
THE ROUTE

Top
Message

The CCBJI Group is promoting “smart work,” a concept thattakes advantage of employees’ diverse work styles andincreases effectiveness and productivity, while also contributing
to employee job satisfaction. The Group is also pursuing system
reform and further implementation of information andcommunication technology (ICT). Employees from various
departments gathered to discuss how smart work is being used,current utilization issues, and future developments.

The CCBJH
Group’s CSV

CSV Progress
ReportCCBJH Group
Information

33

A fulfilling career as part ofa rewarding and fruitful life
Zhang: My team has been proactively making use of the
flextime system, satellite offices, and the ability to work athome in a way that fits the schedule of each member. If
team members stay at work late, then they adjust their
responsibilities and come into the office later the nextday, or when they are out of the office they may work at
a nearby sales branch during free time. Because every
project has a different workflow, it is vital to have anenvironment that promotes working remotely. Somepeople have mentioned that a change of location can berefreshing and good for motivation, which, I think, leads
to higher productivity.
Akimoto: I have a young child, so if I get an emergency
call from the pre-school, I make use of the hourly system
for annual paid leave. Using that, I can solve the issue
without taking a half day off, which is much moreconvenient. I also appreciate having childcare leave,
because all my annual paid leave used to go towardtaking care of my child, but thanks to this system I canuse some days off for myself.

Choosing a flexible
work style is the firststep. Something liketelework can improve
the productivity of an
entire department.

Coca-Cola Bottlers Japan Inc.

Seiya Ishii

Ariha Kawai

Makiko Akimoto

Teng Zhang

Com. & KAM BP Section
HR Business Partner
Commercial Department
HR Division
HR & General Affairs

Commercialization Section
Commercial Planning &Operation Division
Commercial

SCM Planning & Control Section
Senior Group Division
SCM Strategy Department
Strategy Management
SCM

Inbound Planning Department
Marketing Division
Commercial

Contents

We need to be realizing awork-life balance that fits
every individual. By
employing this system well,I have been able to secure
time for myself even whileraising a child.

Kawai: I have a lot of interaction with teams outside of
the main office and most of my meetings are held via
teleconferencing. As long as we are not speaking for the
first time, we do not always have to meet face to face tomake progress. And given how long it takes to travel, thisis more efficient by far. Also, when I want to just focus on
my work—I make more progress at home—I adjust myschedule to include working from home.
Ishii: Working from home can be better for some people
than others, depending on someone’s task andpersonality. But by using it well, it is definitely possible towork more effectively. It can lighten one’s physical andmental burden too, so I think it can help contribute tobetter work-life balance.

Not just a change in work style,but a new way of thinking
Zhang: I have always thought that work-style reform
really means “mindset reform.” We have to change ourway of thinking and build a structure in which we support
each other, so that we can move away from the idea thatworking overtime is the best way to show dedication.
Ishii: Even if we are very aware of smart work, theconcept will not take hold if those around us are not. Andeven if we have a good system, it will be pointless if noCorporate Philosophy
THE ROUTE

Top
Message

one uses it. I am in a position where I can support people
in sales from the HR side, but I feel that the system’s
usage differs by department.
Kawai: Sometimes it just depends on how a supervisor
thinks, right? The concept will catch on if managementtakes the lead in influencing awareness and promoting
work efficiency.
Akimoto: For those in bottling plant jobs, for example,
working from home and shorter hours are difficult
systems to implement. And while there is an increasing
number of places where women can make full use of theirtalents, the challenge is to create an environment inwhich they can advance their careers while also
becoming mothers and raising children.
Kawai: All sorts of things can occur in life. For instance,
how does someone balance caring for family members,
or just being available to look out for them, with job
responsibilities? For situations that are not covered by
the current employee support system, we need a work
environment that allows flexibility and the ability to selectwhat fits best.
Zhang: It can be hard to make changes all at once, but it
is important that reforms never stop. Public initiatives, like
"Jisa Biz,"* that connect with businesses are great too.

The ideal environment is
one in which work styles
can be chosen to fit the job
or any kind of situation
at any time.

The CCBJH
Group’s CSV

CSV Progress
ReportCCBJH Group
Information

34

Ishii: By listening to those in the workplace and reflecting
their opinions in the system, it will become easier forothers who use the system to voice their needs. We needmore of those kinds of examples. Because CCBJI is acompany that values people, I expect reform to progress
further and I look forward to the day when our company
is one where anyone is happy to work.
* An initiative related to work-style reform from the Tokyo Metropolitan
Government that encourages staggered work times in order to avoid thepeak of commuter rush hour on public transit.

I look forward to the day
when our company is
one where anyone ishappy to work.

Work-style reform at the CCBJI Group
Major initiatives
CCBJI is building a better work environment, with anemphasis on shortening working hours, and has becomea special cooperative organization supporting "Telework
Days," which is sponsored by the national governmentand cooperates with the Jisa Biz initiative from the Tokyo
Metropolitan Government. We promote coming straightto or returning home from a third-party location, working
at home or at satellite offices, and using a work/breakinterval structure. We have also introduced a flextime
system, an hourly system for annual paid leave, andcompany-mandated annual days off. In addition, we areproceeding with the introduction of ICT, such as a sales
support system using tablets and smartphones, in orderto improve work efficiency and productivity.

Contents

Corporate
GovernanceCorporate governancehttps://en.ccbj-holdings.
com/corporate/
governance/

Corporate Philosophy
THE ROUTE

Top
Message

The CCBJH
Group’s CSV

CSV Progress
ReportCCBJH Group
Information

35

Basic policy on corporate governanceThe basic policy of Coca-Cola Bottlers Japan Holdings Inc.
(the Company) is to increase management efficiency andtransparency and strive to enhance shareholder value.
To further strengthen the governance structure, theCompany has put in place an audit and supervisorycommittee structure. The Audit & Supervisory Committee,
which is responsible for the Company’s auditing, consists
solely of outside directors (Audit & Supervisory Committee
members), including multiple independent outside directors.
The Company’s management oversight function is further
strengthened by granting to these outside directors serving
as Audit & Supervisory Committee members voting rights atmeetings of the Board of Directors and the right to state
opinions at the General Meeting of Shareholders on matterssuch as the nomination and remuneration of directors.
In addition, the Company has adopted the executive
officer system for the purpose of separating decision-making
and management oversight from business execution. By
delegating some important decisions on business execution
to executive officers, the Company endeavors to enrichdiscussion of particularly important matters at meetings ofthe Board of Directors and expedite management decisionmaking on other matters by executive officers under the
representative directors (the management team).

Corporate governance system (as of March 26, 2019)

Corporate governance system

General Meeting of Shareholders
Election/Dismissal

Company with anaudit and supervisorycommittee

6/9 members

Executive
officers

2/9 members

Independent
directors

4/9 members

Outside directors on
the Audit & Supervisory
Committee

4/4 members

ReportingDirectors

Directors serving on the
Audit & Supervisory Committee

Excluding directors serving on the
Audit & Supervisory Committee

Independent
outside directors: 4
Inside directors: 3

Selection/Supervision/Delegation of
execution of important operations

Outside directors: 6

Reporting execution of operations

Representative Directors
Auditing
ReportingExchange of opinions

Audit office

Coordination

Auditing

Executive Officers

Outsideindependent
directors: 2

Divisions

Corporate Governance Report (in Japanese only)

https://www.ccbj-holdings.com/corporate/
governance/pdf/report_jp.pdf

Supervision/Reporting

Auditing

Group companies
WEB

Reporting/Stating opinion

Audit & Supervisory
Committee

Outsidedirectors

Election/Dismissal

Board of Directors

Financial/Accounting auditors

Organizational
structure

Election/Dismissal

Reporting
Auditing/Determining proposals for election or dismissals
Coordination

Outsidedirectors: 4

Corporate GovernanceContents

Corporate Philosophy
THE ROUTE

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Message

The CCBJH
Group’s CSV

CSV Progress
ReportCCBJH Group
Information

36

Effectiveness of the Board of Directors

Election of outside directors

Remuneration for directors

The Company evaluates the effectiveness of the Board of
Directors on the basis of director self-evaluations of theBoard’s operation, support system, composition, andother matters. The following five points were confirmedin the effectiveness evaluation performed in 2018.

The Company nominates as candidates for outside
director persons who it judges can be expected to makeoutstanding contributions to increasing its corporate
value. Furthermore, when nominating candidates foroutside director who will also serve as Audit &Supervisory Committee members, the Company
nominates at least one person who has appropriate
knowledge of finance and accounting.
Also, the Company determines that outside directors
have sufficient independence from the Company, if, as aresult of investigation to the extent reasonably possible,
they fall under none of the following categories.

The maximum total amount of remuneration allotted forall directors (excluding directors serving as Audit &Supervisory Committee members) is set at ¥750 million
per year (of which, the maximum amount allotted foroutside directors is ¥50 million per year), the maximum
amount allotted for directors serving as Audit &Supervisory Committee members is set at ¥100 million
per year, and remuneration for each director is determined
as described below within the scope of this total amount.

1 ) Appropriate time allowed for full deliberation on
important matters2) Prompt provision of information to directors to allow
full deliberation before meetings3) Enhancement of information provision to outside
directors
4) Assurance of diversity on the Board of Directors5) Continuous review of structure to determine theoptimal governance model
Taking into account the self-evaluation results, theCompany is proactively and continuously undertaking
improvement of Board operation in order to enhance anddeepen discussion at meetings and promote diversity on
the Board, and will strive for further sustained growth andenhancement of medium- and long-term corporate value.
The Board of Directors in fiscal 2019 has been
structured to consist of a majority of outside directors
with enhanced independence and features a diverse
composition of directors with respect to gender andnationality. This is so it can specialize in highly effective
management oversight and strategy and be conducive toa wide variety of discussions.

1 ) A person who is currently, or was within the past 10
years, an executive officer of the Company or any of
its subsidiaries
2) An entity for whom the Company is currently, or was
within the past year, a major business partner (abusiness partner for whom the CCBJH Groupaccounts for 2% or more of its consolidated sales in
its most recent fiscal year) or an executive officer ofsuch an entity
3) An entity who is currently, or was within the past year,
a major business partner of the Company (a business
partner who accounts for 2% or more of consolidated
sales in the Company’s most recent fiscal year) or an
executive officer of such an entity4) A consultant, certified public accountant, attorney, orother professional who currently receives, or received
during the past year, an annual sum of ¥10 million ormore in remuneration from the Company, other than
remuneration as a director or Audit & Supervisory
Committee member
5) An entity who currently receives, or received during
the past year, an annual sum of ¥10 million or more in
donations from the Company or an executive officerof such an entity6) A close relative within the second degree of any
person falling under 1 to 5 above

1 ) Directors (excluding directors serving as Audit &Supervisory Committee members)
Representative directors authorized by the Board of
Directors determine the remuneration for eachdirector (excluding directors serving as Audit &Supervisory Committee members).
Although the Board of Directors determines
remuneration criteria, since the Company has acompany with an audit and supervisory committee
governance structure and the Board of Directors
includes more than one independent outside director,
the Company judges that transparency and fairness
are ensured. To ensure that the remuneration reflects
the responsibilities of directors and the Company’sbusiness performance, remuneration consists of fixed
remuneration and remuneration that varies inaccordance with the Company’s businessperformance and other factors.
2) Directors serving as Audit & Supervisory Committee
members
Remuneration for each director serving as an Audit &Supervisory Committee member is determinedthrough discussion among the directors serving as
Audit & Supervisory Committee members.

CHECK !
Specific shareholding requirement rules for
CEO and other executive officers

NoneBoard of Directors

Contents

Corporate Philosophy
THE ROUTE

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Message

The CCBJH
Group’s CSV

CSV Progress
ReportCalin Dragan

Hiroshi Yoshioka

Representative Director and President

Outside Director
Independent Director

Calin Dragan possesses a wealth of management
experience and knowledge pertaining to theglobal Coca-Cola business gained as
representative director and president of a
Coca-Cola bottler in Japan and in positions atoverseas Coca-Cola bottlers in several countries.

Hiroshi Yoshioka possesses a wealth ofmanagement experience and global businessknowledge gained as an outside director of a
Coca-Cola bottler in Japan and at Sony
Corporation.

Bjorn Ivar Ulgenes

Hiroko Wada

Representative Director, Vice President,
Chief Financial Officer and Head of FinanceOutside Director
Independent Director

Bjorn Ivar Ulgenes possesses a wealth ofmanagement experience and knowledge
pertaining to the global Coca-Cola businessgained as an executive officer and head offinance in various positions at
The Coca-Cola Company.

Tamio Yoshimatsu
Director and Chairman

Tamio Yoshimatsu has a proven track record
gained in the Sales, Distribution, andManagement Planning Divisions and possesses a
wealth of management experience gained as
representative director and president of a
Coca-Cola bottler in Japan.

CCBJH Group
Information

Hiroko Wada possesses a wealth of management
experience and global business knowledge
gained as a corporate officer at The Procter &Gamble Company (U.S.) and as representative
director and president of Dyson Ltd. andToys “R” Us-Japan, Ltd.

37

Contents

Corporate Philosophy
THE ROUTE

Top
Message

The CCBJH
Group’s CSV

CSV Progress
ReportCCBJH Group
Information

Irial Finan

Celso Guiotoko

Outside Director(serving on the Audit & Supervisory Committee)

Outside Director(serving on the Audit & Supervisory Committee)
Independent Director

Irial Finan possesses a wealth of management
experience and global business knowledge
gained as a corporate executive involved in the
Coca-Cola business over many years as an
outside director of a Coca-Cola bottler in Japan,
senior vice president at The Coca-Cola Company,
and as president of the Bottling Investments
Group, which manages The Coca-Cola Company’s
company-owned bottling operations worldwide.

Celso Guiotoko possesses a wealth ofmanagement experience and global businessknowledge gained at Nissan Motor Co., Ltd. andauditing experience gained as a statutory auditorof Nissan.

Jennifer Mann

Nami Hamada

Outside Director(serving on the Audit & Supervisory Committee)

Outside Director(serving on the Audit & Supervisory Committee)
Independent Director

Jennifer Mann is senior vice president, chief
people officer, and president of global venturesat The Coca-Cola Company and possesses a
wealth of management experience and global
business knowledge gained through many yearsof experience in the Coca-Cola business as acorporate executive of The Coca-Cola Company.

Nami Hamada has extensive experience infinance and accounting, including managementof her own financial consulting company, andpossesses a wealth of experience and global
business knowledge gained as a corporate
executive at Lehman Brothers Japan Inc.

38

Main Product Line-up

Contents

Sparkling soft drinks

Sports drinks

Yogurt drinks

Corporate Philosophy
THE ROUTE

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Foods with Function Claims

CSV Progress
ReportCCBJH Group
Information

Coffee drinks

Tea drinks

Water and flavored waters

The CCBJH
Group’s CSV

Juice and juice drinks

Energy drinks

Foods for Specified Health Uses

COCA-COLA, GEORGIA, CRAFTSMAN, SOKENBICHA, KARADA MEGURI-CHA, ADVANCE,KARADA SUKOYAKA-CHA, AYATAKA, KOCHAKADEN, AQUARIUS, S-BODY, FANTA, SPRITE,REAL GOLD, QOO, PURUN-PURUN, MINUTE MAID, I LOHAS, and YOGUR STAND,
are registered trademarks of The Coca-Cola Company.
CANADA DRY is a registered trademark of European Refreshments.
©The Coca-Cola Company

39

CCBJH Group Profile

Contents

Corporate Philosophy
THE ROUTE

Corporate Profile (As of March 26, 2019)

Company name
FoundedTop
Message

The CCBJH
Group’s CSVCCBJH Group
Information

40

Corporate History

Coca-Cola Bottlers Japan Holdings Inc.

April 2017

December 20, 1960
(Trade name changed to Coca-Cola Bottlers Japan Holdings Inc. on January 1, 2018)

Fiscal year end

December 31

Capital¥15,232 million

Representative

Calin Dragan, Representative Director and President

Stock market listings

Tokyo Stock Exchange (First Section)
Fukuoka Stock ExchangeGroup Structure

CSV Progress
ReportCoca-Cola Customer Marketing Co., Ltd.

January 2018

Coca-Cola West Co., Ltd. and Coca-Cola East Japan
Co., Ltd. concluded a share exchange agreement inwhich Coca-Cola West became a wholly owningparent company and Coca-Cola East Japan became
a wholly owned subsidiary.
Coca-Cola West Co., Ltd. changed its tradename to Coca-Cola Bottlers Japan Inc., and all of
Coca-Cola West Co., Ltd.’s businesses other than its
Group management and administration operations
and asset management operations were transferred
to a new wholly owned subsidiary named New CCW
Establishment Preparation Co., Ltd. (whose tradename was subsequently changed to Coca-Cola West
Company, Ltd.). In this way, the companies shifted toa holding company structure.
Coca-Cola West Co., Ltd. and Coca-Cola East
Japan Co., Ltd. were placed under the control of
Coca-Cola Bottlers Japan Inc.
Coca-Cola Bottlers Japan Inc. changed its tradename to Coca-Cola Bottlers Japan Holdings Inc. toclearly indicate its role as a holding company.

Coca-Cola Bottlers Japan Vending Inc.
FV Japan Co., Ltd.

Coca-Cola
Bottlers Japan
Holdings Inc.

Coca-Cola
Bottlers
Japan Inc.

Kadiac Co., Ltd.
Coca-Cola Bottlers Japan Business Services Inc.
Coca-Cola Bottlers Japan Benefit Inc.

QSAI Analysis andResearch Center Co., Ltd.
Q’SAI CO., LTD.

QSAI FARM SHIMANE Co., Ltd.
CQ Ventures Co., Ltd.

External Evaluations
In 2018, CCBJH was selected for inclusion in the regional department of the Dow
Jones Sustainability Index (DJSI), the DJSI Asia Pacific. The DJSI is therepresentative index for environmental, social, and governance (ESG) investments
worldwide. Each year, CCBJH responds to a climate change questionnaireadministered by the CDP, an international NGO which operates a global information
disclosure system for managing the environmental impacts by investors, companies,and cities. The CDP collects, analyzes, and then publishes information and scoringon climate change initiatives and environmental performance.

Communicating with Our Stakeholders

Contents

Corporate Communication Tools
We issue the CSV Report as part of our corporate communication to enable
stakeholders to better understand the CSV activities of the CCBJH Group.
CSV Report 2019 is available in print as a digest edition and the complete report isavailable as a PDF on the corporate website, along with an ESG Data Book,
containing more detailed information.

A concise booklet has been prepared
to inform all stakeholders of the
CCBJH Group’s CSV activities.

CSV Reportdigest edition(printed version)

Overview of the CCBJH Group’s
CSV activities
Highlights of activities under each
CSV priority

CSV Report(PDF version)
CCBJH Group website
Creating Shared Value
https://en.ccbji.co.jp/csv/

All general aspects of
CSV activities are reported in detail.
Activity report for each CSV priority
CSV Report
ESG Data Book

CSV information can be accessed by clicking on “Creating Shared Value” on the homepage ofthe corporate website. Investor relations information, new product and campaign information,
recruitment information, and news are also available on the website.

https://en.ccbj-holdings.com/

Corporate Philosophy
THE ROUTE

Top
Message

The CCBJH
Group’s CSV

CSV Progress
ReportCCBJH Group
Information

Third party contribution to the report

Masao Aoki
Professor, Mie University,
Faculty of Humanities,
Law and Economics
As a specialist in business administration,business history, and R&D management,
I address what defines goodmanagement and explore theindependent identities of corporations,
including the roles that they fill in society,while I research how society can become
better through its companies. PhD
graduate (2002) of the Ritsumeikan
University Graduate School of Business
Administration.

The CCBJH Group puts significant effort into Creating Shared
Value (CSV) within its priority areas of health, the environment,
and community. I find it admirable that not only do they attainconcrete results with those initiatives, but that they collaborate
with community members on local projects in addition topartnering with industry, government, and academia.
By developing the smartphone app Coke ON, in which users
can earn stamps for walking, and holding seminars to help raiseawareness regarding beverage information, the Group builds
connections with consumers through their beverages. If thoseconnections can lead to more interactions between consumers
as well, that will contribute to strengthening the relationshipsthat create value for everyone in the community—which is apart of the Group’s Mission.
In addition, the promotion of "smart work," which
contributes to employee job satisfaction, is allowing people tofind work styles that match their lives. Through smart work
efforts, employees will have more time to spend on otheractivities and on learning, which can benefit their jobs andgenerate further value creation.

41

Contents

Plant
Tours
CCBJI offers plant tours to
help customers become morefamiliar with The Coca-Cola
Company’s products. Guides
will introduce the origin andhistory of Coca-Cola, as wellas quality control andenvironmental efforts.
You will also be able to see
the plant’s impressive
production lines.
Please come visit!

Zao Plant

Corporate Philosophy
THE ROUTE

Top
Message

Tama Plant

The CCBJH
Group’s CSV

CSV Progress
ReportCCBJH Group
Information

Tokai Plant

1-1 Minamikawazoe, Miya, Zao-machi,
Katta-gun, Miyagi

1-2-9 Nobidome, Higashi-Kurume,Tokyo

Tel. 0224-32-3505

Tel. 042-471-0463

Tel. 052-602-0413

Open: Monday through Friday andoccasionally Saturday, including holidays(excluding certain holidays)

Open: Monday through Friday andoccasionally Saturday, including holidays(excluding certain holidays)

Open: Monday through Friday andoccasionally Saturday, including holidays(excluding certain holidays)

Kyoto Plant

Ebino Plant

128 Tai Shinarami, Kumiyama-cho,Kuse-gun, Kyoto

1321-1 Aridome, Higashikawakita,
Ebino, Miyazaki

Tel. 0774-43-5522

Tel. 0984-25-4211

Open: Tuesday through Sunday, andMonday if it is a holiday(excluding certain holidays)

Open: Tuesday through Sunday, andMonday if it is a holiday(excluding certain holidays)

266-18 Tonowari, Minamishibata-machi,
Tokai, Aichi

eck

Ch

For more information on reservations,please check our website.

https://en.ccbji.co.jp/plant/42

Coca-Cola Bottlers Japan Holdings Inc.
Tokyo Midtown Tower, 9-7-1 Akasaka,
Minato-ku, Tokyo 107-6211

For inquiries:
Please use the “Inquiries” formon the Coca-Cola Bottlers Japan Holdings Inc. website.

https://en.ccbj-holdings.com/inquiry/©2019 Coca-Cola Bottlers Japan Holdings Inc. All Rights Reserved.