Top Message
Post-COVID-19
Pandemic : Toward
Sustainable Growth

The COVID-19 pandemic is subsiding. In line with this trend,
people's flow has been revived, and business has been
revived, including disrupted supply chains for food andbeverages, travel, and various conferences. However,Russia's invasion of Ukraine resulted in a shortage of energy
and food, prices have risen, inflation has advanced, andbusiness has entered a difficult phase. While wars havebroken out and commodity prices have risen, there has been
little progress in resolving the various problems of global
war ming, reduction in the number of species, mar ine
pollution from plastics, gaps in wealth, and widening social
segmentation, which threaten the survival of the earth andhumankind. Saraya will take on the challenge of facing these
problems through the business activities of the Group
companies during these difficult times.
The company is hopeful and believes that once Saraya isable to contribute to resolve as many problems as possible
through concrete business practices, even if small, the wave
will be one of business as a whole and the trend will be
toward progress for problem resolution. The following is areport, and the Saraya Group asks for the understanding,
support, and cooperation of everyone involved.

1

In Tsushima, ZERI Japan will promote the collection of drifted
ocean trash and floating marine waste, promote recycling andusing trash and waste as fuel, and foster industries to realize
the Island model. For this reason, Saraya also signed acollaborationagreement with
Tsushima City to
par ticipate inthese missions
and to respondto their business
Kansai Association of Corporate Executives
needs.

① 2025 Osaka/Kansai Expo Blue Ocean DomeIn 2025, ZERI Japan will exhibit
the Blue Ocean Dome at theO s a ka / K a n s ai E X P O, a n d
Saraya will sponsor thisexhibition to work on projects forsustainable use of marine plastic
contamination and the oceans.

③ Mauritania project
The Saraya Group will contribute to sustainable fisheries andindustrial development in West Africa through business. At theend of 2023, the Group will actually establish an affiliate ofSaraya and begin operations with the aim of developing asustainable fishery. This achievement will be announced at the
Expo as the Blue Ocean Project of ZERI Japan.

Top Message

Promotion of the healthbusiness in Africa

The Saraya Group will expand
the contagion managementbusiness in Uganda and Kenya
and strive to launch theongoing type lotion productagainst Tunga penetrans.

3▶

Details on P10

BeforeAfter

Support for the Borneo Conservation
Trust in Europe and the United States

Happy elephant products werelaunched in the United States andEurope. Through company products,
Saraya will raise awareness of thenature c onser vation ac tivities in
Borneo and other regions, donate a
portion of sales to conservation, andpromote the campaign.

4

Happy elephantmanufactured in France

Development of smart meters andsmart switches

The Saraya Group will save energy by promoting the use of IoT
smart switches and smart meters using LoRa modules designed
by SOTUNEC-SARAYA, which was established in Tunisia.
With Mauritania Minister ofFisheries and Ocean Industry

Mauritania Desert④ Promotion of blue ocean education

for children

ZERI Japan will sponsor a variety of meetings on the ocean
and ocean education. Saraya will support these efforts.

⑤ Marine-related product development
Blue Ocean・Dome Expo 20252

picking up trash during a visit to Tsushima

Response and sponsorship ofthe Blue Ocean Project

The Saraya Group will cooperate with ZERI Japan (NPOcorporation) to promote the Blue Ocean Project. ZERIJapan's Blue Ocean Project is as follows, and Saraya will
support it and develop relevant businesses.

3② Tsushima project

The Saraya Group will develop the Blue Ocean brand andprovide information and educational activities through its
products.

established ① a Kanto pharmaceutical factory (completed in April
2023), ② a nitrile glove factory (Yangzhou, Jiangsu, China), and③ a domestic mask factory in Sakai City, Osaka Prefecture, aspart of the building of a resilient supply system. Saraya will fulfill
its corporate responsibility of fighting infectious diseases bymaking full use of these resources.

Enhancement of the hygiene business5 and preparations for infectious

disease countermeasures
The COVID-19 pandemic is converging; however, a pandemic
infectious disease may emerge at any time. In addition,a n t i m i c r o b i a l r e s i s t a n c e ( A M R) t o a n t i b i o t i c s (e.g .,antibiotic-resistant bacteria, MRSA, VRE, multidrug-resistant
Mycobacterium tuberculosis) is quietly progressing, and the
problems of infection are spreading. In addition, infection at
nursing care facilities and at home is another worry. For apandemic or other infection control that may occur, Saraya

Kanto pharmaceutical factorycompleted on April 18, 2023

Nitrile glove factory started
production in January 2023

6 Enhancement of the organization
The Saraya Group will enhance the organization to promote thefields of hygiene, environment, and health. For this reason, theGroup will promote work-style reforms with the aim of creating adiverse and inclusive workplace. As a PR, Saraya actively
recruits highly motivated, positive, and talented personnel who
can deliver excellent performance. Management would like to
ask you to apply for a position within Saraya regardless ofwhether you are a new graduate or a mid-career employee andregardless of age, gender, religion, or nationality.

7

Collaboration with NPOs
and social groups

In order to resolve the various issues facing business and theglobal environment, Saraya deepens its collaboration with NPOs
and social groups and works toward the resolution of these issues.

8 Enhancement of the global network
Saraya contributes to sustainability by building a global
network and then using that network.
President and CEO
Saraya Co., Ltd

Yusuke Saraya

Top Message

4

CO N T E N T S

Saraya sets the three keywords ofHygiene Environment and Healthwhich are closely related, as the pillarsof business and to realize a more
prosperous, fruitful global society.
As a company that contributes to the improvement of hygiene, the environment,
and health worldwide, Saraya provides products and services that meet the diverse
needs of customers.
As a global citizen, the company will work to protect the global environment by,Contents

9 Sanitation Improvement
Project in East Africa

13 For the Sustainable Use of Palm Oil
17 History of Efforts to Reduce Plastic Containers
18 Initiatives in Egypt and Tunisia
19 Future Products Created with SOFORO
20 Renewable Energy 100 Declaration RE Action /Carbon Neutral
23 Farm to Tablefor example, preventing global warming and protecting biodiversity and ecosystems.

25 To Resolve Food and
Health Issues

At the same time, Saraya conducts business by proposing environmental value
to customers through the promotion of the SDGs.

26 Food Value Chain

Editorial Policy
Reporting Period
The report mainly covers achievements in the 2022 fiscal year (November 2021 to October 2022),
but also includes some activities outside of this period.

Guidelines Used for Reference● The Japanese Ministry of the Environment’s Environmental Reporting Guidelines 2018
● GRI (Global Reporting Initiative) “The GRI Standards”

29 Human Resources Utilization Aiming to Utilize
Diverse Individualities and Capabilities
30 Saraya's Health Management
31 Social Contribution Activities

Websiteweb▶

https://saraya.world/images/sections/sustainability/SustainabilityReport2022.pdf

33 Initiatives for Customer Satisfaction
34 Governance of Saraya
35 SARAYA Company Information

5

Contents

Contents

6

01
Contributing to the reductionof the risks of infectious
diseases to ensure safe,
clean lifestyles.

The Saraya Group intends
to become No.1 in the
handwashing industry byoffering products andservices that meet the
hygiene needs ofcountries worldwide.
Handwashing is the starting pointof Saraya's business since thecompany's founding. Saraya also
works to contribute to improving
hygiene in developing countries.
The African segment of business,
which started in Uganda, spreadto Kenya, Egypt, and Tunisia.
Going forward, Saraya will
expand to include West Africa andSouth Africa. With the aim ofcontributing to the good health ofpeople through Saraya's products
and services throughout Africa,
the company will work to achieve
global UHC* while incorporating
advanced technologies into theexpertise cultivated in theprevention of infectious diseases.
※ UHC means that everyone can receive services

for appropriate health promotion, prevention, treatment,
and functional restoration at a payable cost.

7

Sanitation

Sanitation

8

01

01

01

Sanitation Improvement Projectin East Africa▶ Tungiasis Countermeasure Project in Kenya

Saraya is taking on the challenge of developing drugs for the treatment of tungiasis using
its formulation technology and aims to introduce it to the market as soon as possible.

▶ Survey of Reduction in Nosocomial Infections

by Promoting Alcohol Hand Disinfection

Response to the neglected tropical disease tungiasis

In post-COVID Africa, Saraya is advancing a large-scaleintervention study project to accelerate evidence-based
contagion measures with alcohol hand disinfectants.

What is tungiasis?

Eastern Uganda Regional Mikono Project
Africa's first large-scale intervention study aimed at patient safety
The Saraya Uganda corporation is working with the University of Geneva Hospital, which is registered as a WHO
Collaborative Center in the field of patient safety, and the University of Uganda-Busitema on a large-scaleinterventional research project on hand hygiene.

Location of survey

UgandaTororo

Kumi
Mbale
Busia

manner: ① identifying thenumber of nosocomial infections as a baseline, ②introducing
alcohol hand sanitizers and educating the public on proper use,

In 2011, the Saraya Group established a sales company in the capital city of Kampala.
Since the beginning, the Group has developed activities centered on measures to fightnosocomial infections in cooperation with the Ministry of Health, JICA, and Professor
Pitte of the Geneva University Hospital. In 2014, Saraya established a manufacturing
company on the factory premises of a local partner sugar manufacturing company andbegan local production of alcohol disinfectants. In line with the recent expansion indemand for measures against the Ebola virus and new types of coronavirus infectious
diseases, Saraya is strengthening its mass production system, including the
introduction of automatic filling lines. In addition to the previous GMP, ISO 9001,
Saraya obtained ISO 13485 certification in December 2021 and is now working to
improve medical hygiene in anticipation of the post-COVID period.

9

Sanitation Sanitation Improvement Project in East Africa

Saraya Members of Uganda Office

Development of drugs for the treatment of tungiasis
In response to this situation, Saraya has identified and combined an
ef fective insecticide ingredient with the skincare technology
cultivated in the development of hand hygiene chemicals to date todevelop a simpler and more effective treatment. The dosage form isa lotion in a pump bottle, and the lotion is designed to be spread overthe entire affected area in a small amount.
The drug has already received regulatory approval from the Kenyan
Committee on Drugs and Poisons, and Saraya intends to obtainapproval for manufacturing at the Ugandan plant during fiscal year
2024. After being approved in Kenya, the company is providing
samples to the Kenyan Ministr y of Health, Public HealthAdministration, and local NGO / Ahadi Trust focusing on measures tocombat tungiasis. Field testing in the field also confirmed that theaffected area will be clean and cured within two weeks.
O n t h e o t h e r h a n d , eve n a f t e r f u l l r e c o v e r y, i f t h e r e i s n o
improvement in the living environment or the habit of wearing shoes
such that the f loor of houses is covered in sand, the problem
remains, and people will suffer from tungiasis many times. For thisreason, Saraya is committed to contributing to the realization ofcomprehensive support for treatments as well as education andenlightenment and preventive measures.

Case of treatment by our lotion
type product against Tungiasis
Societ yInitiatives of Saraya Manufacturing (U) Ltd. in Uganda

Tunga penetrans-parasitic legs (top left of the photograph) and tungiasis mass
treatment in Kenya (top right and bottom of the photograph)

Health③monitoring the number of nosocomial infections that occur
thereafter, ④providing feedback to the worksite, and ⑤creating
a clean, safe work environment (climate of safety). In developed
countries, many reports on this type of intervention have been
published, and it has already been proven that the promotion of
alcohol hand sanitization in medical facilities leads to the
reduction of nosocomial infections.
However, in developing countries, especially in Africa, there havebeen only a few similar studies, and the improvement ofcompliance with alcohol hand sanitization has only been used as
an indirect indicator for reducing nosocomial infections (the dataobtained in the JICA project in 2013 was for a very short periodof time and with a limited number of subjects). Therefore, thisapproach to directly verify the effectiveness of a project of thisscale in reducing nosocomial infections is very innovative.
The survey aims to verify the differences in effectiveness byfacility size and facility level by covering a variety of medical
facilities, including public and private hospitals, health centers,
and regional core hospitals, as well as by selecting two facilities
in each of the four neighboring prefectures to verify theeffectiveness of infection control measures in each cluster.
The project was launched in August 2019 and was temporarilysuspended because of the COVID-19 pandemic. In August
2022, the project launched its last remaining intervention in theprovince of Busia. Saraya plans to continue to intervene until
July 2023. Subsequently, through July 2024, this study,
including monitoring and feedback and the Safety Climate
building, is expected to have significant impacts on the region,
as well as spillovers throughout Uganda and throughout Africa.

Env i ronment

The target field sites for thisstudy are eight healthcare
facilities across four
provinces in eastern Uganda.
In accordance with the
WHO's Clean Care is Safer
Care campaign, activities are
conducted in a step-by-step

MIKONO is
It means "hand"in Ugandan.

Tungiasis is a parasitic skin disease caused by theflea, Tunga penetrans, and it is a serious problem
in more than 20 countries in Africa, Latin America,and India, with an estimated two million cases in
Kenya alone.
Once a person is infected, the disease progresses
unnotic ed, leading to systemic nec rosis andlymphangitis, as well as secondary infections ofsepsis and tetanus HIV/AIDs due to unsanitaryconditions and incorrect treatment.
T h e M i n i s t r y o f H e a l t h o f Ke nya i s t h e o n l ygovernment in the world to tackle this disease andestablished guidelines for measures against
tungiasis. March 3 is designated as the day oftungiasis in Kenya, and the government is aiming
to eradic ate it. However, as with many otherneglected tropical diseases, because of theirlimited areas and scale of damage, no effective
therapeutic drug has been developed to date.
Under the guidelines, treatment with manganesedioxide solution and coconut oil is recommended,
but the cure rate is only around 40%.

▶ Case1

BeforeAfter▶ Case2

BeforeAfter

Sanitation Sanitation Improvement Project in East Africa

10

02
Saraya is doing its utmost
as a global citizen to help
create a sustainable planet.

The Saraya Group aims
to create sustainableproducts throughout
the process fromdevelopment todisposal.

Since its founding in 1952,
Saraya has provided productsthat contribute to solving thesocial problems of each era,
thereby ensuring its businessfoundation.
At the heart of this effort was a
response to the deterioratingwater and air environment.
This approach to global
environmental issues, which isthe starting point of Saraya, isnow continuing as the approachto global sustainability.
Saraya will do its utmost toaddress the problems of global
warming, reduced biodiversity,and marine pollution caused byenvironmental destruction.

11

Environment

Environment

12

02

02

01

For the Sustainable Use of Palm Oil▶ Borneo's biodiversity conservation activities and dissemination

are spreading as far as the eye can see. The forests remain insmall, island-like fragments within the forests. The wild animals
living in these small forests have no choice but to pass throughplantations and human settlements when migrating, and this iswhere the conflicts with humans occur.

of RSPO Certification

In order to promote the sustainable use of palm oil,
Saraya is engaged in activities on the twin pillars
of local biodiversit y conser vation and thedissemination of RSPO certification.
Background to biodiversity conservation activities in Borneo
Elephants entering an oil palm plantation▶

Oil Palm Plantation Expansion
1984

Now

2011.06
Saraya Forest No.4
2.1ha

LOT4
Ki n

Foot of an elephant in a nylon rope trap

Kinabatangan River Basin in
Sabah in 1984; Green area
is tropical rainforest.

a

ta
ba

n

n
ga

er
R iv

2010.03
Saraya Forest No.3
1.8ha

2009.05
Saraya Forest No.1
2.2ha

The orange area is an oil palm
plantation, and only a small
amount of tropical rainforest
remains along the river.

Forest Preserve
Private Properties,
Plantations

2012.10
Saraya Forest No.5
1.9ha

2022.10
Saraya Forest No.10
4.094ha2019.7

Palm oilPalm kernel oil

Saraya Forest No.8
2.76haOil palm：Preserved Areas
and Forests：Green Corridor
Planning Districts

Japan

2018.03

BorneoSumateraJava

Borneo island and surrounding countries map

Program interview and afterward
President Yusuke Saraya, in response to this interview, candidlystated that he had not been aware of the problem at the raw
material procurement site until then, and at the same time, he took
action. First, he hired personnel familiar with international
cooperation, dispatched them to Borneo, and began to investigate
how to handle the situation. Then, with the help of information fromthe program production company, he planned to join the RSPO,
which was just being established at the time, and help reform theindustry, as well as the ongoing biodiversity conservation activities.

Support for activities of the Borneo
Conservation Trust

Mr. Saraya's Field Trip to Borneo (2006)

13

Environment For the Sustainable Use of Palm Oil

We started our research on biodiversity conservation in Borneo at
the end of 2004, and our first project was to rescue injured
elephants. However, this alone would not solve the fundamental
problem. Therefore, we started the Green Corridor Project with thecooperation of biodiversity conservation specialists and the Wildlife
Depar tment of the st ate of Sabah, M alaysia. The tropic alrainforests of Borneo are rapidly shrinking, and oil palm plantations

Saraya Forest No.7

5.99ha2017.04

2020.10

Saraya Forest No.6

Saraya Forest No.9

4.25ha4.49haSociet y

Sabah

Malaysia
Indonesia
Brunei

Kinabatangan
River

HealthSaraya's efforts to conserve biodiversity in Borneo began with a TV programon nature and the environment that was aired in 2004. The topic for that day's
broadcast was animals of the Borneo rainforest. However, wild animals living
happily in the forest were not introduced, rather creatures whose habitats had
disappeared and were on the verge of extinction were shown. The Borneo
elephants, endemic species of Borneo, were particularly tragic. The elephants
had no choice but to enter human settlements due to the shrinking of theirhabitat, where they suffered from injuries caused by nylon rope traps calledjump ropes set by humans.
The tropical rainforests in Borneo have rapidly decreased over the past 50
years, and the main cause is the expansion of oil palm plantations Palm oil andpalm kernel oil are extracted from the fruit and the seeds of the oil palm tree,
respectively. These have become an integral part of our lives, mainly for food.
The producer of this program sought interviews with some food companies
using palm oil to find out what they thought about this situation. However, they
all refused to be interviewed, and finally, Saraya was introduced through a
network of contacts. Our signature product, Yashinomi Detergent, used palm
oil products as raw materials, albeit in very small quantities.

2010.01
Saraya Forest No.2
4.0ha

Sanitation

Tears of a Baby Elephant

The Green Corridor Project aims to restore the lands among these
forests as one continuous broad ecosystem by purchasing the lands
from farms and other entities.
The Borneo Conservation Trust (BCT) is a nonprofit organization
established in the Malaysian state of Sabah for this purpose, andBorneo Conservation Trust Japan (BCTJ) was established to support
this movement from Japan. Through the collaboration of these twoorganizations, approximately 100 hectares of land have beenacquired since 2008 to October 2022. Although it will be difficult toachieve the goal by purchasing land through this campaign alone, it
is hoped that these efforts will influence local government policies
and the hearts and minds of local people and will vlead to significant
changes that will protect Borneo's forests. Saraya donates one
percent of the sales of its Yashinomi series and other target
products, and the Saraya Forests acquired with these funds have
expanded to ten locations totaling 33.584 ha (as of October, 2022).

Oil Palm Plantations Expanding Along the Kinabatangan River,the Largest River in Borneo“Green Corridor Project” to save wild animals

Sustainable procurement of palm oil
Palm oil that supports people's lives
Palm oil is imported in large quantities into Japan. Approximately 85% of thisimported amount is for edible use, such as fried oil, instant noodles, and snacks,
and the remaining 15% is for nonedible use, such as soaps and detergents, which
are in widespread use in our lives.Demand has spread around the world because
the oil is cheaper than other oils. Palm oil has a high yield per unit area, greatly
outperforming other major vegetable oils, such as soybean oil.
Illegal child labor and forced labor, illegal logging, and various other problems are
inherent in the environment surrounding inexpensive palm oil. In order to improvethese issues, Saraya is committed to environmental conservation and sustainable
raw material procurement.

Inedible 15%

Printing Inks, Cosmetics,
Soaps, Detergents, etc.

Edible 85%
Fried Oil, Instant Noodles,
Snack Foods, etc.

Main uses of palm oil (from “Monthly Yushi”)

Environment For the Sustainable Use of Palm Oil

14

02

02
RSPO Certified Raw Material Procurement Status and Future Policies

Supporting Wild Asia’s SPIRAL Projects

RSPO Promotion System and Procurement Results

Agricultural models that take biodiversity andclimate change into accountdissemination of RSPO certification. To support this effort,
Saraya has actively purchased the credits issued by small
farmers since 2017. Through this initiative, in December
2022, Saraya was invitedand commended during the“ Evening of G ratitude“sponsored by the NGO
Group Fortasbi (Indonesian
Sustainable Oil Palm
Smallholders Forum) thatNGO group Fortasbi "Evening of
Gratitude" awards ceremony
helps small-scale farmers
obtain certification.
（MT）
6,000
5,000
4,000

certification
rate

certification
rate

certification
rate

certification
rate

certification
rate

63.0%

82.7%

100%

100%

73.5%

15

6

10

11

1,463t1,229t

15

700t

10

1,148t10

1,124t

3,000
2,000
1,000
0

1,240t

4,579t2,376t2,171t3,394t1,590t1,194t

758t

2018

2019

2020

2021

2022

Saraya's Palm Oil and Palm Kernel Oil
Non-Certified Oil

RSPO-MB Certified

Credits (RSPO)

Credits (WAGS)RSPO-SG Certified

Toward 2030, Saraya is aiming for a 100% certification rate again, including the book-and-claim method. At the same time, thecompany will promote the purchase of physical certified raw materials, such as segregation and mass balance, and increase its
procurement ratio. Saraya will also expand the use of RSPO certified oils group-wide, including those abroad.
▶

Segregation▶

Book & Claim（Credits）

Peasant farmers and Wild Asia teamparticipating in Spiral

Biochar firing demonstration by Wild Asia staff

Strengthening the Value Chain for Borneo Environmental Conservation
Resumption of on-site inspections by employees
Because of the COVID-19 pandemic that began in 2020, employees were unable toconduct on-site inspections in Borneo, but the inspections were resumed after therelaxation of restrictions on overseas travel. In December 2022, 14 representatives
from different departments, including participants at the general meeting of the
RSPO, visited the site. Traveling members came from a wide range of departments,
including the Purchasing, Public Relations, General Affairs, Personnel, andConsumer Business divisions. Many members traveled to Borneo for the first time,and by seeing the reality of the situation in the host country, the company further
strengthened its desire to work for Borneo environmental conservation. In the future,
Saraya will communicate its activities to consumers, local communities, suppliers,and other stakeholders as the company works to strengthen its value chain.

HealthFuture RSPO Certified Raw Material Procurement Policy

Wild Asia is a social enterprise established in 2003, based in Malaysia, promotes theWild Asia Group Scheme (WAGS) as a support activity to conserve tropical rainforestsand promote RSPO certification for smallholders.
Since 2017, Saraya purchased RSPO-certified palm oil and palm kernel oil credits
through WAGS from small farmers in support of their activities. Wild Asia pointed outthat the acquisition of RSPO certification alone cannot not sufficiently incentivize
small-scale farms, conventional farming methods are dependent on expensive
chemical fertilizers, and that the biodiversity of farms is undermined. In response,
Saraya began the program called the Small Producer Inclusivity & Resilience Alliance(SPIRAL) in 2020 to improve the productivity of farmers through new farming methods,
to improve the biodiversity of farmland, and to support climate-friendly agriculture.
Saraya visited the site and provided support for the program in December 2022.
This new farming method, in addition to obtaining RSPO certification, is expected to reduce
costs by converting from expensive chemical fertilizers to organic fertilizers made by thefarmers themselves, improve the profitability of farmers by cultivating multiple crops, andcreate carbon credits by producing bio-charcoal and applying it to agricultural land using
palm branches. Saraya will support the construction of a sustainable oil palm farming modelthat takes biodiversity and climate change into account in collaboration with Wild Asia.

Sanitation

Saraya joined the Roundtable on Sustainable Palm Oil (RSPO) as thefirst Japanese company to do so in 2005. In addition, in 2010, Saraya
became the first Japanese company to acquire RSPO supply chain
certification, and since launching products with a certification mark(segregation, isolated style), the company has continued to operateon the basis of those standards. A cross-divisional promotion system
has been established within the company to prepare a variety ofdifferent documents, provide education and training, conduct internal
audits, and undergo external certification audits.
As for the derivative raw materials derived from palm kernel oil, which
are used in large quantities as raw materials for soaps anddetergents, the introduction of RSPO certification throughout theentire supply chain has not progressed, and it is difficult to procure
raw materials for physical certification models. Accordingly, Saraya
supports the production of sustainable palm oil by purchasing credits
issued by producers under a certification model called Book andClaims (book-based assertion type). However, since June 2020, theprice of credit has soared, which forced Saraya to limit the amount ofcredit purchased. Currently, the company maintains a 100%
certification rate for consumer products from the standpoint of raisingconsumer awareness and purchases credits for corporate products
based on customer requests. Because it is difficult for one company
to resolve this price hike alone, Saraya will seek solutions while
exchanging information with relevant companies and organizations.
In addition, obtaining certification for small-scale farms, which
account for about 40% of the total output, is an issue for the

Visit to an oil palm farm by an employee

Societ y

Segregation: Sustainable palm oil from different certified sources is kept
separate from ordinary palm oil throughout the supply chain. Identity
Preserved: Sustainable palm oil from a single identifiable certified
source is kept separate from ordinary palm oil throughout the supply
chain. The Saraya Happy Elephant line uses segregation palm oils.

The supply chain is not monitored for the presence of sustainablepalm oil. Manufacturers and retailers can buy credits fromRSPO - cer tified growers, crushers and independent
smallholders. The Book and Claim supply chain model issupported by the trade of RSPO credits.

Toward Further Dissemination of RSPO Certification in the Japanese Market
As of December 2022, more than 280 Japanese organizations
were members of RSPO, making it the fourth largest group in
the world. In 2019, 18 organizations, including Japanese
ret ailer s, c onsumer goods manufacturer s, and NGOs,
established the Japan Sustainable Palm Oil Network (JaSPON)
to disseminate RSPO-certified oils in the Japanese market.
Saraya also participated since its establishment as a director
15

Environment For the Sustainable Use of Palm Oil(46 organizations as of December 2022). In fiscal year 2023,
Saraya participated as one of its management teams and isactively engaged in these activities. Because it is difficult topromote the use of RSPO-certified oils through the activities ofa single company, Saraya will continue to work with member
organizations as a member of JaSPON to promote this systemin the Japanese marketplace.

Toward New Changes in the Oil Palm Industry
S a r aya h a s b e e n a p i o n e e r i n p r o m ot i n g R S P O
certification. Biodiversity conservation projects in Borneo
have also had an impact and have attracted attention
f r o m c o nsumer s and t he me dia, as we ll as f r o m
researchers and have been reported in several papers.
Negotiations with local governments are required toproceed with the Green Corridor Project, and Saraya
needs to continue making persistent and steadycontributions. As for activities aimed at transforming
the oil palm industry, it is no longer enough to use
RSPO certified products.
Many RSPO member companies are already taking thenext step. More than ever before, there is a need to use

sustainable resources and for
initiatives for Nature Positive.
Under these circumstances, thespread of agroforestry and bio-charcoal in cooperation with Wild
Asia is indeed a state-of-the-art business. Recently, a biofuel
development project using algae was launched on Borneo Island.
There is no doubt that if this trend increases,
i t w i l l a f f e c t t h e p a l m o i l i n d u s t r y.
Preparations are also required to respond to
new changes.
Researcher of Saraya Co., Ltd

Mr. Nobuo Nakanishi

Environment For the Sustainable Use of Palm Oil

16

02

02

02

History of Efforts to Reduce
Plastic Containers

03

Initiatives in Egypt and Tunisia▶ Sustainable business development utilizing plant-derived materials

Since its founding, Saraya has thought about the environment,
developed and marketed a variety of products based on theconcept of making products from natural materials, andactively addressed plastic problems.

The objective is for a sustainable society together
with customers by creating a system that enables
the purchase and use of products that contributeto environmental conservation activities.

Efforts to Reduce Plastics through Various Measures
Solving Social Issues through Jojoba Oil’s Business

Achieving resource conservation from the founding stage

Jojoba Oil with Various Potential

Returnable containers for commercial use
For many years, Saraya has used returnable large-volumecontainers filled with commercial detergents, shipped, collected
w h e n e m pt y,cleaned, and thenreused. Aging
containers arealso recycled.

Bag-in-box (BIB) system integrates
packaging and containers
Saraya is shifting to a BIB system instead of plastic bottles
where corrugated containers
use inside bags containing the
To thermal
recycling ofchemicals.
Inner bag(polyethylene bag)

8080%

Towarda paperrecyclingsystem

Improvements in hand soap containers based on feedback from customers at medicalsites that want to reduce the volume of waste generated at business sites. Shape

Jojoba Seed

Jojoba Orchard of
Simmond Co., Ltd.

Fostering Tunisian Industries through Olive Oil

innovation and thinning of the containers enabled folding before being discarded, thus
reducing the volume of waste by about 70%. In addition, Saraya reduced the use ofplastics by approximately 50% compared to conventional bottles.

Situation and Future Targets of Material Flowof Containers
Saraya has been aggregating material flow items related to containers up to
fiscal year 2022, which was the most recent target. The company monitors
the total amount of plastic used as bottles and refill pouches as well as theamount of pouches jointly collected, including refilled pouches of Saraya
products, collected by participating in the Kobe Plastics Next Pack Recycle
Project. Currently, Saraya is working to（t）Bottles
Refill pouches
c alc ulate the amount of recyc led
4500
396.4tmaterials and bioplastics used and the4000
416.4t3500
amount of reductions for a wide range
315.4t3000
336.8 tof products. A system will be setup to2500
3526.8tmonitor mater ial f lows. Fir st, the20002704.5t
1500
2609.4t
company will implement a variety of
1991.9 t
1000
measures to achieve the medium-term
5000targets by fiscal year 2025 and to
2019
2020
2021
2022
materialize the long-term targets byTotal plastic used in containers
fiscal year 2030.
(containers and refill pouches)
17

Jojoba Manufacturing Area

Environment History of Efforts to Reduce Plastic Containers▶ Medium-to long-term policy up to 2030●

Up to fiscal

2025

Medium-term
targets●●●

Up to fiscal

2030

Long
-term
target●●●By using thinner containers and replacing them with refilledpouches, the company aims to reduce plastic consumption by
a cumulative total of 25% or more (on a weight basis)compared with the previous production of bottles (2019 basis).
More than 70% of containers used on the production lines(on a weight basis) shall be reusable or recyclable. Even
when it is difficult to recycle, heat recoverability is secured.

Double the use of recycled materials compared to 2019.
D eve l o p a n d c o m m e r c i a l i z e n e w m a t e r i a l s t h r o u g hindustry-university collaboration.
Establish a framework for the collection of waste
plastics, including in-house products, through collaboration
within the company group.
Par ticipate in plat forms that transcend industr yboundar ies and wor k to recycle plastic resourc es incollaboration with diverse stakeholders.
Consider evaluating methods in which CO2 emissions fromthe entire lifecycle is evaluated as indices as part of avariety of measures for resource recycling.

※The base year is 2019, when the Osaka Blue Ocean Vision was presented.
※Based on the results as of fiscal year 2025, the medium-and long-term policies for 2030 and beyond will
be reviewed, and new quantitative targets will be set.

Societ y

Reduced-volume
bottles

Saraya Middle East in Egypt

HealthB.I.B (Bag-in-box)

When folded
after the useof corrugatedcardboard an
approx.%削減
約
reduction

plastics

Construction of a plant for Saraya Middle East Co., Ltd., is currently
underway in the Ain Sokhna Special Economic Zone along the Suez
Canal in Egypt. This factory will consist of a manufacturing facility thatcan squeeze jojoba oil. Through the sale of jojoba oil, a raw material for
cosmetics, Saraya intends to lead in the planting of jojoba, which cangrow even in harsh deserts, for the greening of deserts. In addition, thecompany has been improving the productivity of jojoba production incollaboration with the Osaka University venture company Simmond Co.,
Ltd., which has been leading the way since 2017. By achieving cost
reductions in the production of jojoba oil, Saraya will not only use it as araw material for cosmetics but also investigate a variety of otherpossibilities, such as insect repellents for agriculture and machine oil. In
2021, with the support of Saraya, specific research on the developmentof these applications began at the Egypt-Japan University of Scienceand Technology in Cairo. In addition to jojoba oil-related products, theAin Sokhna plant, which is scheduled to begin operations sometime in
2023, plans to manufacture Lakanto, cosmetics, and hand disinfectants.
The plant will supply products to North Africa and the Middle East
through sales companies in Egypt, Saraya Egypt Co., Ltd., a sales
company in Dubai, and Saraya Middle East Trading Co., Ltd.

Sanitation

In 1952, Saraya developed and commercialized Japan's first medicatedhandwashing soap solution, Pearl Palm Soap Solution, and a soap solution
container. This resource-saving product is diluted 7-10 times with water when
it is used. It was a revolutionar y produc t that has been made withconsideration for the environment since that time.

Toward the start of operations at the plant in 2023
In Tunisia, one of the Maghreb countries in the northwestern region of Africa,olive oil production has f lour ished for many years. Tunisia fac es theMediterranean Sea and has more than 300 clear days per year; the olive oil
produced there contains 10 to 20 times more polyphenol than European oil
thanks to the climate. However, these products are exported in bulk because ofproblems with processing and bottling technologies, they are blended with
European-produced olive oil and other products, and then put on the market. As
a result, Tunisian olive oil has generally traded at low prices, and the income of
Tunisian farmers has remained at low levels. Accordingly, Saraya aims tocontribute to the development of sustainable industries, the correction of regional
disparities, the implementation of measures against unemployment, and thedevelopment of human resources to promote domestic industries by promoting
education in the technologies and expertise for optimal control from the harvestof olives to crushing, as well as product development, such as bottling, to sell as
high-value-added products. Currently, Saraya Natural Products Tunisia Co., Ltd.,is constructing a plant in the El Fejja Industrial Park, located 30 km southeast of
the capital city of Tunis, with the aim of commencing operations in 2023. In
addition to bottling Tunisian-produced olive oil, the plant plans to manufacture
perfumes and cosmetics using essential oil extracted by the affiliate Saraya Bote
Sante and to widely supply the products to overseas markets.

Saraya Natural Products Tunisia Co., Ltd.

Oil tank

Olive grove and fruit

Environment Initiatives in Egypt and Tunisia

18

02

02

04

Future Products Created with SOFOROIn Saraya, we pursue the unknown possibilities hidden in
SOFORO and continue to create products that arefriendly to people and the environment.

Saraya has participated as a member of the Consultative Committee
for the Renewable Energy 100 Declaration RE Action and declaredthat 100% of the total will be renewable energy by 2050.

Fermentation
Process

Yeast

Sugar and
Palm Oil

RSPO-Certified

Producing organism

Air

Incubation underaerobic conditions
at 30℃ for 5-6 days

Purification
method without
use of organic
solvents

Culture Mediaand Microbial
Component
Sophorolipids

Purification

Purified
Sophorolipids

SLs are a mixture of the lactonic type and the acidic type of SLs, which
complex structures are expected to have performance not present insynthetic surfactants. In 2001, we launched SOPHORON, the firstdishwashing product utilizing SLs in Japan. This was the result of productdevelopment and research that took advantage of the low foaming, highdetergency, easy biodegradability, and extremely low toxicity to aquaticorganisms of SLs.
Subsequently, we developed acidic SL, which improved the stability of
SL in aqueous solutions, making it possible to use SL in liquid typeproducts, such as our household detergent brand Happy Elephantproduct line-up and medical device reprocessing brand Power Quick
detergents. Furthermore, we succeeded in developing high purity acidic
SL with a higher degree of purification, achieving diversification and

19

Environment Future Products Created with SOFORO

seven prefectures, and eight government ordinance-designatedinitiative in which companies (with less than 50 GWh of

cities have been appointed ambassadors to provide public

electricity consumption per year), local governments,

relations and other services as supporters of these activities.

educational institutions, and medical institutions announce

Despite the recent surge in electricity prices, the suspension

the shift of their electricity consumption to 100% renewableof acceptance of new contracts by retail electric utilities, andenergy by 2050 at the latest by working together. As thethe successive withdrawal of new electricity, making it norepresentative director of the Green Purchasing Network

longer easy for users without their own power generation(GPN) and affiliated with Saraya Co., Ltd., Tokyo, Saraya

facilities to procure renewable energy, the increase in theh a s p a r t i c i p a t e d a s a m e m b e r o f t h e C o n s u l t a t i ve

number of participating organizations suggests a rise in

Committee for the Renewable Energy 100 Declaration, RE

demand for renewable energy as well as an increase theAction, since its establishment in 2019.

willingness of organizations to work toward the realization of

The number of participating organizations exceeded 300 asa decarbonized society. In December 2022, Saraya held anof January 2023, the total number of employees within theevent for the first time since its establishment in which

participating organizations reached approximately 160,000,

participating organizations held one event. The company will

and the total amount of electricity consumed reachedcontinue to act as a member of the council.

approximately 1,672 GWh. In addition, three ministries,

TO VARIOUS
PRODUCTMANUFACTURING
PROCESSES

Figure 2. Fermentation and Purification Process of Sophorolipids※ The manufacturing process uses a traditional biotechnology, the fermentation technology, at room temperature, under normal pressure, without the use of organic solvents.
The process is carefully considered with the environment in mind from the raw material procurement to the manufacturing process.

Product development utilizing SOFORO's
properties

The Renewable Energy 100 Declaration, RE Action, is an

sophistication of SL raw materials. At the same time, we also obtained
additional evidence of the multifunctional properties of SLs, such as
their adsorption and inhibition effect, high biocompatibility, and ability
to promote transdermal absorption; hence, expanded to applications
such as leave-on cosmetics (Lactoferrin Lab), and regenerative
medicine (SOFORO Cryo).

For further expansion of its applications
Saraya found an environmentally friendly and unique SL production
method and at the same time, confirmed various interfacial chemical
properties of SLs and their compatibility with humans and theenvironment. Our unique SLs has been trademarked as "SOFORO" andis used not only in our own products but also in a wide range of otherapplications, such as road washing as part of decontamination work,
and in bioremediation. We will continue to promote SOFORO research
and formulation development to contribute to a sustainable society.

06

Carbon Neutral

Societ y

Allow
to settle

Heat
Sterilization

To thePurification
Process

Initiatives to Achieve a Carbon-free Society

HealthPurification
Process

Main rawmaterial

Figure 1. Structures of sophorolipids (A: lactonic type, B: acidic type)

Renewed energy, which holds an important key to overcoming dependence on fossil fuels

Sanitationhydrophobic substrate (oil), which is the carbon source, for SL
production.In addition, this method also allows separation andpurification without the use of organic solvents, hence, the entire SL
production process has a low environmental impact. At present, weare using RSPO-certified palm oil, which is environmentally andhuman rights friendly, as our main raw material, for the fermentationand production of SLs.

Biosurfactants (BSs) are amphiphilic substances produced by
microorganisms, such as bacteria and yeasts, which have excellent
environmental compatibility and high surfactant activity. Furthermore,since BSs are produced by fermentation, in other words, a bioprocess,they have attracted more attention from the Life Cycle Assessment(LCA) perspective than synthetic surfactants, which are produced bychemical synthesis.
Sophorolipid (SL) is a type of BS that have a structure with acarbohydrate (sophorose) in the hydrophilic part and a lipid (fatty acid)in the hydrophobic part (Figure 1). As a result of our research on thefermentation production of SL, we discovered a unique fermentation
production technology and established it for the stable production of
SL at the industrial level (Figure 2). This is a highly efficient production
method that enables fermentation and production under normal
temperature and pressure, allowing complete consumption of theRenewable Energy 100 Declaration
RE Action▶ Aiming for 100% Sustainable Energy Use

Saraya’s proprietary sophorolipid, SOFORO, produced through fermentation
What is SOFORO?

05▶ Toward the Realization of Carbon Neutral

Various initiatives are under way in Japan to achieve carbon neutrality
by 2050.
Consider the Tipping Point in Global Climate Change
Japanese domestic moves to realize a GX that is attracting attention worldwide
Today, the earth is about to enter the tipping point of climatechange. "Tipping point" refers to the events where gradualchanges become rapid changes. Beyond a certain level,irreversible and large-scale changes may occur with regard
to climate change, and research is underway.
In October 2020, then Prime Minister Yoshihisa Sugade c lare d " 2 0 5 0 C ar b o n N e ut r al " w it h v ir tually ze r ogreenhouse gas emissions by 2050. With this declaration
as an opportunity, the term Green Transformation (Green

Transformation: GX) began to attract attention in Japan. GX
refers to the transition of fossil-fuel-central economic,
society, and industrial structures since the Industrial
Revolution to a clean energy-centric approach and thetransformation of the entire economic and social system. In
February 2023, the Cabinet approved the Basic Policy for
Realizing GX, and legislation will be put in place to achievecarbon neutrality by 2050.

Environment Renewable Energy 100 Declaration RE Action / Carbon Neutral20

03
We will contribute to
the health of the world.

Supporting the healthy
and cultural livesof all people throughour products
and services.

Saraya started with thedevelopment of products that
contribute to the prevention of
infectious diseases.
Saraya's first step in thedevelopment of health foods was
the development of natural
sweeteners that contribute to theimprovement of dietary habits.
Saraya developed its philosophy of
prevention, which has continued tothis day, into the prevention oflifestyle-related diseases. Saraya
promotes steady research anddevelopment of health foods bythoroughly implementing raw
materials, functions, and effects
that are friendly to humans andthe earth.
For the next generation, Saraya,
a naturalist, will continue to take on
the challenge of offering new
proposals for food and health.

21

HealthHealth

22

03

03

01

Farm to Table

Japan's First Zero Calorie Sweetener
Background to the development of Lakanto

Saraya's Challenge of Contributing to the Prevention ofLifestyle-Related Diseases
The Founder and His Thoughts on Monk Fruit
Encounter with a fruit (Lakanka, Monk fruit)
The monk fruit, an ingredient of the Lakanto series, is a
cucurbitaceous plant that grows wild near Yongfu County,

Saraya, the manufacturer of cleaning and disinfecting

Lakanto, a plant-derived sweeteners with zero calories, toagents, developed a zero-calorie sweetener based on themeet the dietary needs of people who paid attention tophilosophy of prevention, which has been in place sincepreventing lifestyle-related diseases. Today, zero-calorie

the company's founding. In order to prevent the spread ofsweeteners are commonplace, but Lakanto was the first

infectious diseases, Saraya developed Shabonet, azero-calorie sweetener to be commercially available. The

medicated soap solution that sterilizes and disinfects atd eve l o p m e nt c o nc e pt was bas e d o n t h e fo ll ow in g

the same time as washing the hands. Also, when diabetes

considerations: plant-derived, zero sugar, zero calories,

and other lifestyle-related diseases replaced infectious

no need to convert the amount used, and can be used for

diseases during the high-growth period, we developed

cooking, all for the safety and convenience of users.

Guilin City, in the Zhuang Autonomous Region of China, andis mainly grown in Guilin City. Saraya began researching
Sanitationmonk fruit in the 1990s, and in 1998, the company signed ajoint business agreement (memorandum of understanding
signing ceremony for monk fruit sweetener development
project) with Guilin City, China.

Signing Ceremony with Guilin City

Although China is now an economic superpower, the living
conditions of the peasants in Guilin at that time were much
Env i ronment

harsher than imagined. Seeing this situation, the founder ofSaraya said, "Monk fruit is a sustainable plant grown in Guilin.
A Japanese company should not enter and monopolize this.
Let's launch the monk fruit project to eliminate the harshpoverty of peasant life and revitalize the city of Guilin." (SDGs
Development Goals ３．８). Saraya subsequently registered

Shota Saraya, the Founder (Middle) and Yusuke Saraya,
the President (Second from Right) (Picture Taken in 1998)

patents on the substance and manufacturing process of monk
fruit extract only in Japan, and opened up the technology

Lakanto S, a Plant-Derived Sweeteners with Zero Calories

without registering it internationally.
In recent years, the need for natural, zero-calorie sweeteners
has expanded worldwide; however, this was the beginning ofDelivering Peace of Mind from Raw Material Procurement
and Commercialization to the Table

it. Especially in the United States, where "sugar-free" is the
key wo rd fo r plant- der ive d fo o ds, intere st in s afe andMonk Fruit Cultivation Site of Saraya's Agreement Farmers.
Monk Fruit Flower and Artificial Pollination of Monk Fruit

plant-derived sweeteners is high.

with a wide range of people interested in diet, beauty, and health, as well as those with calorie or sugar intake restrictions.
Furthermore, in recent years, as chemically synthesized sweeteners have been shunned worldwide, the need has been
expanding for plant-based, zero-calorie sweeteners. In the United States in particular, many alternative sweeteners have been

Societ y

Quality Control for Safe and Reliable Food

Lakanto, with zero calories and zero sugar, does not contribute to a rise in postprandial blood sugar and has become popularused in place of sugar, but there is growing

Acquire FSSC 22000 certification
From the process of growing monk fruit, Saraya contracts with many farmers
to grow them under strict pesticide control. The Guilin factory (Guilin Saraya
Biotech Co., Ltd), which Saraya established in Guilin in 2015, produces
high-quality, safe, reliable monk fruit extract and supplies raw materials for
Guilin Saraya Biotech Co., Ltd.

Lakanto series products. The Guilin factory manufactures Lakanto brandproducts under thorough traceability from monk fruit cultivation and extraction
to the end product. In recent years, demand for Lakanto products has
increased from the United States and other countries around the world, andthis year, in 2022, the Guilin Factory underwent expansion, doubling its
production volume from the previous year. The Guilin and Osaka plants
acquired FSSC 22000, an international standard for food safety certification,i n S e pte m b e r 2 0 2 0 a n d J un e 2 0 21, r e s p e c t i ve l y. By ac qui r i n g t h ecertifications, we will strengthen our food safety management system andMembers of the Food Safety Team at the Osaka Factory

23

Health Farm to Table

provide safe, secure food products to consumers in both Japan and overseas.

interest in safe plant-derived sweeteners, anddemand for Lakanto, made from monk fruit,
which has long been popular in Chinese
medicine as a sacred fruit for longevity, hasgrown significantly.
Against t his bac kdrop, t he Saraya USA
Lakanto factory, which was being constructedin Utah, USA, opened in March 2023. The
plant has an extensive site of approximately
12,000 square meters and consists of a front
office, manufacturing facilities (mixing andpackaging), raw material and finished productwarehouses, and a quality assurance room.
Saraya USA Lakanto factory

Health Farm to Table

24

03

03

02

To Resolve Food and Health Issues▶ The SARAYA Group's Challenges Related to Food

03

Food Value Chain

As food hygiene professionals we utilize our experience in foodhygiene management to offer total support in the establishment ofa food value chain that can scale with developing countries topreserve and share the fresh taste of local ingredients, following
food safety and hygiene guidelines.

Saraya aims to create a sustainable foodculture together with related businessdivisions and relevant companies.

SARAYA KITCHEN LAB. Project - Share Kitchen Opens in Nairobi

Effort to Food System Solution Promotion

by using SARAYA's cooking utensils and equipment

In the food industry, providing quality food that is fresh, wellAlso, in order to create the form of sustainable

Nairobi, Kenya, which was selected for the "5th.

including quick-freezing equipment, and SARAYA's

formed, and attractive is essential. In order to maintain suchnext-generation food, we also sell frozen foods at stores

Tobidase-Japan!" project subsidized by the Ministry of

hygiene products, such as electrolyzed water generators.

quality, the food industry, which offers a wide andsuch as Cotof Marche, which sells healthy side dishes andEconomy, Trade, and Industry. We are developing an

detergents, and disinfectants. We are also promoting thespectacular menu lineup, has been faced with a variety offrozen foods from businesses that have introduced Rapid

incubator facility that will allow food businesses to relocate

use of pop-up restaurants, central kitchens, menu

problems in securing human resources, passing on skills,

Freezers and Shut-Man. We provide sales support, andand rent equipment. This will also promote fooddevelopment, cooking classes, food hygiene seminars,

and food loss. It is estimated about 6 million tons of edible

engage in consistent efforts from operational proposals toprocessing, Incorporating Japanese level of food hygiene,and Lakanto.

food is currently wasted annually in Japan andcooking operations and exit strategies in terms of sales andapproximately 1.3 billion tons worldwide. Meanwhile, food is

distribution under the theme of the next generation of

not being distributed in developing countries for a variety ofrefrigeration.

Env i ronment

SARAYA KITCHEN LAB. has opened a shared kitchen in

Sanitation

Utilization and operation of rapid freezing technology

reasons, and there is growing international awareness that
hunger will not be going away.
The new coronavirus infection changed food demand andconsumption patterns, and the food industry has been
affected by the entire food chain from producers to
distributors and restaurants. In addition to a variety ofdifferent issues related to food to date, new issues havebeen highlighted, such as restrictions caused by infectious
diseases and changes in demand. As a result of theseRapid Freezer

Shut-Man

developments, awareness of food safety and hygiene wasalso heightened, and the importance of hygiene control andquality control was once again recognized. At the sameSpecialized Food Processing Equipment at Saraya Nairobi Kitchen Lab

Cooking scene at Saraya Nairobi Kitchen Lab
Societ ytime, the frozen market rapidly expanded, and interest in
liquid freezing, which rapidly freezes and saves in highquality, increased. These trends will continue into the future,

Changing common sense about food with hygiene technology

and as efforts to supply sustainable food and resolve issues
become more important, Saraya proposes a new chilled
frozen cooking system, a next-generation cook and freeze

In East African countries, where the food supply chain still needs

system that uses the Shut-Man vacuum degassing

development, it is common for food freshness to drop before it

packaging machine capable of high-speed hot packs andreaches the market. In order to eliminate product loss between

the Rapid Freezer for high-quality freezing. This systemproduct and consumption, it is vital to establish a new food

employs the latest frozen technology to reduce food loss

distribution system. Using SAR AYA's rapid freezing systemand supports production areas in solving problems. The

together with Japanese hygiene technology we've taken on thesystem also contributes to reducing carbon dioxidechallenge of expanding sales channels with high - qualit y,emissions by saving labor. At prior sites, new added value isvalue-added food processes in Kenya and Uganda.

created by the frozen work of non-standard agricultural

Yamasen, a Japanese restaurant in Kampala, the capital of

products that were previously disposed of. At cooking sites,

Uganda, has entered the food hygiene business in East Africa,

pre-cooking is possible, and production can be planned

offering the taste of fish caught at Kenyan fishing ports andaccording to demand. This not only reduces food loss but

Uganda ingredients. Saraya has invested in COTS COTS LTD., aalso enables smoother operations and contributes toJapanese venture c ompany that plans and operates thisrestaurant, and is supporting Yamasen to become a model caseimproved production efficiency and the elimination of labor
shortages.
25

Health To Resolve Food and Health Issues

Cotof Marche

for practicing Japanese-quality food hygiene.

Japanese restaurant "Yamasen" in Kampala, the capital of Uganda

Health Food Value Chain26

04
As a member of society,
Saraya will endeavor to build anddeepen bonds with stakeholders
and the relevant parties
surrounding the company.

The company will strive
to resolve issues throughbusiness in order torealize a sustainable
society worldwide.
Amid concerns about global
sustainability, Saraya will contributeto the resolution of concerns
through business activities.
The company will develop businessby building a global network andproviding unique products andservices both domestically andoverseas.
Through these business activities,
Saraya regards addressing global
environmental and social issues as
one of our most importantmanagement policies andcontributes to the realization of asustainable society by providing
environmental value to customers.

27

SocietySociety

28

04

04

Internal Initiatives

01

Human Resources Utilization Aiming
to Utilize Diverse Individualities
and Capabilities▶ Leveraging diverse human resources to create new value

The Saraya Group has established a diversity promotion policy and is
promoting initiatives to utilize human resources.
Diversity and Inclusion Initiatives

02

Saraya's Health Management

Saraya will contribute to the world as a leader in the fields of hygiene,
environment, and health around the world with the aim of further raising
the awareness of health by promoting the health of important employees
and their families.

Saraya's Health Management Initiatives
To realize the well-being of each and every employee
Saraya's mission is to contribute to the hygiene, environment, and health of theworld. To date, Saraya has developed as a leader in the fields of hygiene,
environment, and health, supported by customer confidence. Indeed, health ispart of the roots of Saraya and the main theme in the development of products
and services. At the same time, the health of Saraya employees and their families
is an important foundation that supports the sound growth of the company.

Saraya's Diversity Promotion Policy

Furthermore, Saraya believes that health is not only about "not being sick" but2

In order to accept and use diverse
human resources and values and todevelop their skills as autonomous
human resources, Saraya
encourages employees tounderstand diversity and enhances
the work environment and training
systems.

3

Through its businesses and CSR,
Saraya aims to be a company in which adiverse range of employees andcompanies can work together to grow,develop, and contribute significantly tothe sustainable development of theplanet, the national community, and the
local community.

In addition to the Overseas Business Headquarters, many multinational members are active in every aspect of Saraya.
Personnel are involved in business development in different parts of the world where cultures and customs are unique.

Deployment of Global IT at Global Operations Division
Saraya has formed a global IT team of four IT specialists of
Ukrainian nationality starting in 2021. Saraya's global offices
are located in more than 20 countries around the world andvar y in size. The IT infrastructure is essential to the
management of these offices, and the team is responsible
for establishing IT-related policies, educating global
employees in these policies, and distributing newsletters tos h a r e t h e l a t e s t I T t r e n d i n f o r m a t i o n . We a c t i ve l y
implemented an online approval system that connects
overseas offices with headquarters using global security andcloud applications, which is especially necessary for small
and medium-sized overseas offices. Our global IT team iscurrently executing centralized management of France,
Ukraine, Russia, Poland, Thailand, Cambodia, Malaysia,
Hong Kong, Myanmar, and Australia on a daily basis.
A daily workday for the Global IT team starts in the morning
Ukraine time and, working with local teams on IT projects inFrance, Paris, and Germany. In the afternoon Ukrainian local

29

Society Human Resources Utilization Aiming to Utilize Diverse Individualities and Capabilities

time, they have meetings
w it h J apan, H o ng Kong,
Thailand, Cambodia, andMalaysia according to the projects, and then are involved inproject promotion of IT infrastructure projects in the USA
office. By incorporating global specialist human resources, wewill contribute to the development of hygiene, environment,
and health around the world as One Saraya, while further
demonstrating synergy effects with each country.
Global Operations Division
General Manager

Mr.Ihor Honcharuk

The company believes that everyone can aim for a healthier mind and bodyand can ultimately realize that rich personal skills and personalities as a person
are equal to the state of one’s well-being. The realization of well-being of eachand every employee will be the driving force behind the growth of Saraya, andthe company will engage in health management to contribute to the health ofpeople around the world where Saraya is involved.

Health Management Organization

President and Representative
Director of Saraya Co., Ltd.
Chairman of the Board, Tokyo Saraya Co., Ltd.

General Manager,
General Administration &Human Resources Division,
Saraya Co., Ltd. General Manager,
General Affairs Department,
Administration Division,
Tokyo Saraya Co., Ltd.
Planning of organizational management
measures for employees' healthmanagement and setting of numerical targets

Health Insurance Association

On March 31, 2022, Mr. Honcharuk, generalmanager of the Global IT Team based in Kyiv,
Ukraine, and his family arrived in Japan via
Warsaw, and has been working as a General
Manager of Global IT at Global Operations
Division of the headquarters since April.

HealthAppointment of foreign employees

also about being able to live in good health even if suffering from an illness.

Saraya's corporate philosophy is to contributeto hygiene, environment, and health aroundthe world. The company hereby declares its
c o m m i t m e nt t o h e a l t h a n d p r o d u c t i v i t ymanagement as a company that contributes
to the health of people around the world
through business activities through healthpromotion and the utiliz ation of diver seknow-how and functions in terms of hygieneand health.

Env i ronment

Saraya will expand the curiosity and surprise of
employees toward work through diverse humanresources and diverse values, increase thedepth of expertise of personnel, expand thediversity of the world and each business field,
and create fun through team strength, which
will provide new value to c ustomer s andimprove the level of satisfaction.

Saraya Group HealthManagement Declaration

Sanitation

Saraya promotes organizational management that respects the diversity of human resources so that women, the elderly, people withchallenges, and foreign nationals can play an active role from the standpoint of the sustainable growth of companies and humanresources. Human resources are the most important management resource, and the company hopes to actively use them to promotebusiness.

1

Internal Initiatives

Follow up on planning and operationof measures with healthmanagement staff with the goal of
improving employee health figures

Positioning the promotion of the health of employees and their dependents
as part of corporate management, we will systematically operate employee
and other health management as management responsibilities.

In order to effectively manage
the health of wor ker s in theworkplace, follow-up on medical
expertise for health managers.

Chief Health Executive Officer
Board of Directors

Industrial physician

Head of Health Management

External support

Health management staff
Person in charge in the General Affairs andHuman Resources Division of Saraya Co., Ltd.
Person in charge of the Administrative Divisionof Tokyo Saraya Co., Ltd.
Promote the operation of measuresfor employee health management

Representatives of each business group
All Employees

Provide services in line with theinformation entrusted bybusiness operators who
per for m stress c hecks andmake proposals to accordingly
improve numerical values.

Health Committee
Established in workplaces with50 or more employees in buildings

Society Saraya's Health Management

30

04

04

External Initiatives

03

Social Contribution Activities▶ Domestic and overseas initiatives

Amid concerns about the sustainability of the world, Saraya promotes avariety of businesses with the aim of resolving business goals by improving
the world's hygiene, environment, and health. These concerns cannot be
attained without partnerships among countries, companies, regions, andexperts. Saraya works with NGOs, NPOs, governments, local governments,and other relevant organizations through businesses to help address social
issues and achieve the sustainable development goals.

▶ Participation in external groups
English NameECO DESIGNNETWORKIn 2001, the company joined the Eco-Design Network, a specified nonprofit organization,
which was established to address global environmental issues from the perspectives ofmanufacturing, community-building, and local environment-building.

NPO ZERIJapan

Saraya established ZERI Japan in 2001, and president Yusuke Saraya was appointed the chairman of theboard of directors. This initiative is based on the Zero Emissions Initiative, which aims to recycle resourcesand energy and bring waste closer to zero. The goal of the initiative is to raise awareness and provide
environmental education in Japan, build industrial clusters (alliances), and realize a recycling-oriented society.

Save the Children
Japan

Save the Children, a 100-year-old child rights pioneer, is a global NGO specializing in childsupport. In Japan, Save the Children Japan was established in 1986, and Saraya has
supported its activities since 2004. A portion of the sales of the arau series and the arau
baby series, which are supportive products, are used in the activities.

Japan IDDM
network

In 2006, Saraya joined the Nippon IDDM Network, a certified nonprofit organization that aims
to realize a society in which patients and their families who need insulin replenishment canlive with hope. The company supports these activities through Lakanto S.

Borneo Conservation
Trust Japan

In 2008, Saraya joined Borneo Conservation Trust Japan, a certified nonprofit corporationthat works to conserve biodiversity and protect tropical rainforests on Borneo Island,
Malaysia. 1% ※ of the sales of palm oil-related brands, such as the Yashinomi series,
Happy Elephant, and Cocopalm, is used for environmental conservation on Borneo Island
through the Borneo Conservation Trust (BCT). (※) Manufacturer shipment value.

Japan BusinessInitiative for Biodiversity

In 2008, Saraya joined the Japan Business Initiative for Biodiversity (JBIB), a group ofcompanies that actively act with the aim of conserving biodiversity, as a regular member.

Japan Committee
for UNICEF

The Saraya One Million Handwashing Project was launched in 2010 as a joint project with
the UNICEF Japan Association, and 1%※ of total sales of sanitation-related brands* wasdonated to UNICEF, which is used to support UNICEF's handwashing promotion activities
in Eastern Africa and Uganda. (※) Manufacturer shipment value.

According to the World Health Organization (WHO), the number of cervical cancer deaths worldwide is projected toincrease from 311,000 to 0.4 million between 2018 and 2030. Cervical cancer is the leading cause of death among
women in Uganda, Africa. Since 2012, Saraya has supported the White Ribbon Campaign to protect expectant
mothers in East Africa through JOICFP. Saraya has helped protect Ugandan maternal patients from infectious
diseases in Phase 1 of the Saraya Safe Motherhood Project and has started the Phase 2 initiatives. The company isengaged in activities to protect the lives and health of women
worldwide, including through the use of a portion of the sales of
Lactoferrin Lab, a skin care brand in Saraya, to support thepromotion of cervical cancer testing in Uganda.

Lactoferrin
Lab Series

31

Society Social Contribution Activities

Since 2012, a portion of the sales of Lactoferrin Lab have been used in the White Ribbon
Campaign promoted by JOICFP, a Japan-born international cooperative NGO that is active
in protecting the lives, health, and well-being of women.

HealthSafe Motherhood projectJapanese Organization
for International
Cooperation in Family
Planning (JOICFP)

Env i ronment

In 1996, Saraya joined the Green Purchasing Network, which was established as a loose
network of companies, governments, private organizations, and other organizations thattake the initiative in green purchasing.

Logo

Sanitation

Handwashing guidance by hand washing ambassador

Purpose and Activities

Green Purchasing
Network(GPN)

One million handwashing projects
This project has been implemented in cooperation
with the Japan Committee for UNICEF since 2010
in Uganda, one of the countries where
handwashing, the starting point of Saraya, is stillinsufficient. The company provides handwashingfacilities in Uganda and educational training forthe spread of handwashing.
One percent of all sales of the targeted products(value of shipments from manufacturers) is
donated to the Japan UNICEF Association, which
will be used in the handwashing promotion
program developed by UNICEF in Uganda.

External Initiatives

WHO Associationof JapanIn 2012, Saraya became a member of the Japan WHO Association, a public interest
incorporated association that informs the public of the activities of the World HealthOrganization (WHO), a specialized organization in the field of health care, and works
inform as many people as possible by sharing useful information.

World Wide Fundfor Nature Japan

In 2020, Saraya joined WWF Japan, an environmental conservation organization active in more than 100 countries that
restores the wealth of the biodiversity being lost and works to prevent global warming.

Japan Sustainable
Palm Oil Network

In 2019, Saraya joined the Japan Sustainable Palm Oil Network (JaSPON), which wasestablished to accelerate the procurement and consumption of sustainable palm oil in theJapanese marketplace, with the aim of resolving a variety of environmental and otherissues related to palm oil production.

Climate Emergency
Network

Saraya is a member of the Climate Emergency Network as a representative of the founders,which was established as a platform for free exchange among municipalities that have declaredor are seeking to declare a climate emergency, municipalities seeking to declare net zero
emissions by 2050, and young people, citizens, experts, NGO, companies, and governments.

Japan Clean Ocean
Material Alliance

In 2021, Saraya joined the Clean Ocean Materials Alliance (CLOMA), a platform foraccelerating innovation by strengthening collaboration between the public and private sectors
and a wide range of stakeholders, with a view to resolving the issue of offshore plastic waste.

Global Environmental
ActionIn 2022, we joined the Global Environmental Action Council (GEA), which was established
as an NGO for the purpose of helping to resolve global environmental issues and achievesustainable development.

BLUE OCEANINITIATIVE

Through multifaceted exchanges with all stakeholders related to the sea and businessco-creation, Saraya has been a member of the Blue Ocean Initiative, a corporate alliance
attempting to resolve social issues that are both sustainable and effective in protecting andincreasing the prosperity of the sea, as a leader since its establishment in 2022.

Society Social Contribution Activities

32

Initiatives for Customer Satisfaction
Consumer-oriented voluntary declaration

Governance of Saraya

Philosophy
Saraya aims to realize a sustainable society bysecure products as "Saraya that connects life." In

contributing to the development of hygiene, environment,

addition, as a member of society, Saraya will endeavor toand health around the world. The company will develop

build and deepen bonds with stakeholders, in otherbusiness by building a global network and providing

words, the relevant parties involved in the company.

unique products and services and then provide safe,

Policy for Initiatives●

The business goal is to contribute to thedevelopment of hygiene, environment, and healtharound the world. We will protect the global
environment through business, sustainably use
resources, and raise awareness among employees
to realize sustainable development and true
enrichment.

●

●

●

We value the opinions of customers. We collectand analyze the customer's voice, identify the
problem, and promptly resolve the problem. We
will wor k with stakeholders to c ontinuously
improve the system and respond appropriately tothe requirements of stakeholders.
We will comply with regulations promulgated bynational and local governments, including quality
and environmental laws and regulations, and will
endeavor to comply with international regulations
and all other regulations.
For customers and other external stakeholders,
we set up a customer contact to receive a varietyof opinions. Important matters in the opinions
received are reported and discussed at meetingsof the Board of Directors and other bodies, andthe opinions are reflected in management.

3 . To p m a n a g e m e nt p o l i c i e s a n d i nte r n a lpenetration

33●

We will c lar if y the goals and roles of eac horganization and assign responsibility and authority
for execution.

2. Corporate GovernanceSociety Initiatives for Customer Satisfaction

Saraya established an internal compliance system andregulations. The company will also reflect the valuablepromotes legal compliance and ethical activities based

opinions of its customers in corporate management,on the 10 principles of the Global Compact as

including product development. Saraya also strives toguidelines. The board of directors meets once a monthstrengthen the compliance system by providing

to report on the aforementioned situation toeducation and training for employees at least once amanagement. Complaints from customers are handledy e a r, i n c l u d i n g i n f o r m a t i o n s e c u r i t y a n d l e g a l

promptly and appropriately in accordance with internal

compliance.

New United Nations Global Compact CoP

1. Commitment by top management●

GovernanceEvery week, a Message from the President isdisseminated by top management to all
employees. By fostering a corporate culture andhaving a major impact on the code of conduct of
employees and the decision-making ofexecutives, all personnel are encouraged to fostera sense of sustainability and customer
orientation. In addition, we posted in-houseposters and slogan panels to raise awarenessamong employees.

4. Enhancing the provision of information to
consumers and exchanging information in aninteractive manner●

We are constantly strengthening the governancesystem from product development tomanufacturing and services in order to ensure thesafety and quality of our superior products. In
addition to incorporating quality in the processfrom customer feedback to product planning,
design, production, and sales, we established asystem for conducting surveys and responding tocustomer inquiries about quality.

Saraya signed and joined the United Nations Global Compact in June 2009 and now
works to realize its 10 principles. The current Annual Report (CoP) of the United Nations
Global Compact has changed dramatically. Every year since 2023, Saraya submits
responses with the (i) CEO electronic signatures that demonstrate ongoing support for
UNGC and (ii) corporate actions related to the 10 principles and SDGs.
Q u e s t i o n s a r e d i v i d e d i n t o f i v e c a t e g o r i e s : g o v e r n a n c e , h u m a n r i g h t s , l a b o r,
environment, and anticorruption.

Future Issues Based on Answers
In the four areas of human rights, labor, environment,
and anticorruption, questions arose about corporate
policies, preventive measures implemented before
problems are identified, and appropriate responses tonegative impacts. In each category, Saraya stipulated
prevention and c ounter measures in its inter nal
regulations, or generally wor ked on them as
operations of the department.

However, future issues include the formulation anddisclosure of "policies." Specific policies enable us to
identify and manage risks, mitigate adverse impacts
and systematize our response to incidents. We also
believe that by clarifying and declaring our policies
e x t e r n a l l y, w e c a n m o t i v a t e a n d d i r e c t t h eimplementation of these policies.

5. Development and Improve Based on Consumer
and Social Needs●

We will strive to improve and develop products
based on realizing a sustainable societ y bycontributing to hygiene, environment, and health.
We also aim to be a company that can develop
ethical products that meet the expectations ofc u s t o m e r s a n d s t a ke h o l d e r s , a n d w e w i l l
implement philanthropy.

Governance34

SARAYA Company Information
Company Information

Saraya Co., Ltd.

Tokyo Saraya Co., Ltd.

1952

1969

2-2-8 Yuzato, Higashisumiyoshi-ku,

1-25-8 Higashishinagawa, Shinagawa-ku,

Osaka Japan 546-0013

Tokyo Japan 140-0002

Telephone+81-6-6797-3111+81-3-5461-8101

Capital

45 million yen

60 million yen

Year of establishment

Headquarters

Access SARAYA’s website

WebsiteRead our company profile
Company
Profilehttps://saraya.world

https://saraya.world/whowe-are

Annual Sales and Number of Employees（as of the end of October 2022）【Saraya】● 62.6 billion yen ● 1837 persons【Saraya and Tokyo Saraya】● 73.2 billion yen ● 2271 persons（billion yen）

（persons）

80

2,500
2,250

70

2,000

60

1,750

50

1,500

40

1,250

30

1,000

20

46.5

50.2

76.0

78.5

73.2

10
0

1822

2062

2060

2135

2271

2018

2019

2020

2021

2022

250

2018

2019

2020

2021

2022

Consolidated Net Sales for the Past Five Years

35

750
500

SARAYA Company Information

0

Consolidated Number of Employees for the Past Five Years