CSVREPORT
2021[ DIGEST EDITION]

Coca-Cola Bottlers Japan Holdings Inc.

Deliver happy moments toeveryone while creating value• We are the preferred partner for our customers• We win in the market through sustainable growth• We lead a learning culture with commitment to grow• We are the best place to work with pride for Coca-Cola• Learning• Agility• Result-orientation• Integrity

CONTENTS
03

CSV HIGHLIGHTS 2021

Top Message

17

Platform

Inclusion

19

Platform

Communities

21

Platform

Resources

05

Value Creation Cycle

11

Response to the COVID-19 Pandemic

07

Coca-Cola System
Sustainability Framework

13

Hiroshima Plant:
Recovery from Natural Disaster

25

CCBJH Group’s CO2 Emissions
Results and Accounting Methods

09

CCBJH Group Commitments toward
Value Creation

15

Toward a World Without Waste

̶Group Structure/External Evaluations

Terminology

The “CCBJH Group” (“we”) refers to Coca-Cola Bottlers Japan Holdings Inc. and its seven Group companies (Coca-Cola Bottlers Japan Inc., and the CCBJI
Group’s other 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 affiliated companies. “Customers”
generally refers to both “consumers” (primarily product end-users) and “business partners” (primarily those who sell our products).
*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.

01

Corporate Profile (As of February 1, 2021)
Company nameCoca-Cola Bottlers Japan Holdings Inc.
December 20, 1960

Founded(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)

Business area

Tokyo, Kyoto, Osaka, andSales volume

About

90%

35 prefecturesof the Coca-Cola system
in Japan

PlantsSales and distribution centers

17

About

330

Vending machines

Annual sales volume

About

About

700,000

500 million cases

Consumers in sales area

About

112 million(51 million households)

Customer outlets

About

250,000

VehiclesAbout

14,50002

Top Message

Business as usual is not an option.
We are embracing change toachieve sustainable growth.
We offer our sincerest sympathies toeveryone impacted by the COVID-19
pandemic. We would also like toexpress our deepest respect andappreciation for the medical
professionals, and for all who havebeen on the front lines throughout
this difficult time.

Delivering happy moments toeveryone while creating value
We are all living throughunprecedented times because of the
COVID-19 pandemic. Economic andsocial activity have been severely
impacted, while businesses have been
forced to change in order to protect
the bottom line and continue toprovide services in a dramaticallychanged environment. The beverageindustry in Japan is no different, andhas experienced lower consumer trafficin channels such as convenience storesand vending machines due to theimpact of more people working fromhome and refraining from going out. In
this environment, the CCBJH Grouphas rapidly adapted its work styles inan agile way; secured the safety of
consumers, business partners,
employees, and communities; andprioritized the continued support oflocal communities, by such means as
donating beverages, implementing
strict hygiene protocols, and shifting toa flexible work-from-home model. Our
Mission is to “Deliver happy moments
to everyone while creating value.” We
will continue striving to provide safe
and trustworthy products and services
that are essential for daily life.

An unrelenting focus ontransformation for greater growth
The CCBJH Group has placed creating

03

shared value (CSV)—in which businessgrowth and society’s sustainability aretreated as one issue—at the core of its
business management.
In order to achieve our Mission andto continue our CSV activities, wemust strengthen our business. In
2020, inspired by the strong
determination that business as usual is
not an option, we accelerated thetransformation of our business underdifficult circumstances. One exampleof this is our focus on developing aquicker and more agile supply
infrastructure. With the startup ofseven aseptic production lines—in
which we have been investing since
2019—we have increased our
production capacity for aseptic
packaging by 20% to meet growing
demand. Moreover, the optimizationof our logistics network is progressing
steadily with our advanced, largescale automated distribution center(Saitama Mega Distribution Center)becoming operational in February
2021. Operations at the Saitama
facility will ramp up in 2021 and thiswill play an important role in futuredelivery of efficiency savings. In
addition, the new Hiroshima Plant—
forced to relocate due to damage
from torrential rains in western Japan
in 2018—became operational in June
2020, and in October 2020, theplant’s tour facilities, which will
provide an important venue forcommunication with stakeholders,were completed.

Solid progress in addressing
society’s priority issues
With less than a decade until thetarget year of the United Nations
Sustainable Development Goals(SDGs), activities related to theenvironment, society, andgovernance (ESG) are of growing
importance. The Coca-Cola system
in Japan has identified three
Sustainability Platforms based on
the SDGs—Inclusion, Communities,
and Resources—and has determinednine priority issues within thesecategories. To address these issues,
the CCBJH Group has set its own
non-financial CSV Goals and isadvancing concrete initiatives.
In the area of Inclusion, in
January 2021, we achieved our initial
target—6% of our managers being
female—earlier than planned, andwe have updated our goal to having
20% female managers by 2030.
In Resources, the Coca-Colasystem in Japan established its 2030
Packaging Vision in January 2018
(revised in July 2019) based on the
global Coca-Cola vision of a World
Without Waste. We are working toachieve this vision via three coreelements: design, collect, andpartner. We are making solid
progress and have increased thecontent of recycled PET plastic in
PET bottles to 28% (7 percentage
points higher year on year). We havesignificantly reduced our use ofplastics made from fossil fuels withthe launch of products such as
I LOHAS Natural Mineral Water in
100% recycled PET bottles andlabelless packaging for online
sales—which became available inMarch and April 2020, respectively.
For Communities, we areundertaking initiatives that leverage
our valuable community
partnerships to support Inclusion
and Resource priorities as part ofrealizing flourishing communities.

Stakeholder collaboration is
crucial for creating a virtuous
cycle of sustainable growth
We face increasing uncertainty associal issues become more complex,
and we are also dealing with theunprecedented threat of COVID-19.
However, no matter thecircumstances, our aim is to achieve
our Mission. Realizing our Mission
means more than just delivering
happy moments to our consumers. It
also involves continuing to provide
society with value through ourbusiness activities, while maintaining a
profit, therefore helping the whole ofsociety to grow sustainably in a
virtuous cycle. To do this, it is crucial
to cooperate with our stakeholders.
We aspire to fulfill our role in society
in order to earn the support of our
stakeholders, and, at the same time,
strive to evolve even further as acorporate group. The Tokyo 2020
Olympic and Paralympic Games, longawaited by many around the world, is
expected to be held in 2021. As abottling company in the hostcountry—and in collaboration withWorldwide Olympic Partner,
The Coca-Cola Company, as well as
Coca-Cola (Japan) Co., Ltd.—we will
deliver happy moments to everyone
and do our part to make the games a
successful and memorable occasion.

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

04

Value Creation Cycle

Achieving Sustainable Growth
The CCBJH Group aims to create both social andeconomic value and achieve sustainable growth byusing water and other indispensable natural
resources responsibly to provide its customers
high-quality value-added products, while working incollaboration with The Coca-Cola Company and themembers of the Coca-Cola system in Japan.

MISSION
Deliver happy moments
to everyone while
creating value

INPUT

C

Natural capital	Water, which is the source of our value creation, andother natural resourcesIntellectual capital	Key global brands, led by “Coca-Cola,” andbrands loved in Japan
	Marketing and R&D expertise to meet the needs ofour customers
	Close relationships with The Coca-Cola Company, including
the Coca-Cola (Japan) Company, and members of
the Coca-Cola system in Japan

Creating

Inclusion

Co

Manufactured capital	A raw materials procurement network, leveraging the scale of
the global Coca-Cola system, that facilitates the production ofsafe and trustworthy products	Cutting-edge management systems, facilities, andtechnology in our production plants
	A network of vending machines covering our entire sales area

Coca-Cola System
Sustainability Framework:

P. 07

Progress report by material issue:

P. 17

Human capital	Employment of diverse and inclusive human resources	Different work styles that allow employees tomaximize their talents
Social capital	The trust of our stakeholders and their support for CSV
initiatives
	Close involvement in community activities throughout our sales
area
Financial capital	Good stewardship of capital	Solid balance sheet	Shareholder returns

05

OUTCOME
Social value

Economic value
Sustainable profit growthand cash flow generation Balanceof CCBJH Group

Earning our “social license
to operate” with relevant
ESG priorities based on
the Sustainability
Framework

CCBJH Group commitments
toward value creation

P. 09

OUTPUTSV

Shared Value
Beverage business products and brands

ommunities

BUSINESS MODEL

Resources

Creating shared value (CSV) is at the coredeveloped from a detailed materiality

In our beverage business, the CCBJH Group aims to deliver tocustomers the beverages they want, when and where theywant them. To make this a reality, we aim to achieve best-inclass innovation and operations while collaborating with The
Coca-Cola Company and the Coca-Cola (Japan) Company.
While rapidly responding to changes in society and the market
environment, we are creating products that not only meetcustomer needs now, but will also fulfill unmet needs.

analysis for the business. Our Sustainability

The Coca-Cola system in Japanof our business because we believe
opportunities for further Group growthcome from helping address social issues.
We carry out CSV initiatives based on our
Sustainability Framework, which was

Framework comprises three platforms—
Inclusion, Communities, and Resources—and nine priority issues.

The Coca-Cola system in Japan is composed of Coca-Cola (Japan)
Co., Ltd.—which supplies beverage base, plans and develops new
products, and conducts marketing activities—as well as five bottlingpartners and other affiliated companies that manufacture or sell
products and retrieve their containers for recycling.
Coca-Cola (Japan) Co., Ltd.

Planning

Researchanddevelopment

Beverage
base
production

Coca-Cola Bottlers Japan Inc.

Production

Distributionandtransportation

Sales

Retrieval

Recycling

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

06

Coca-Cola System Sustainability Framework

In 2019, Coca-Cola (Japan) Co., Ltd. and Coca-Cola Bottlers Japan Inc. jointly conducted a large-scale study toidentify sustainability issues and set priorities based on materiality for the Coca-Cola system in Japan. The
intent was to formulate a strategy reflecting issues unique to Japan, in addition to global sustainability targets
being pursued worldwide, and to include these in a common action plan for the combined Coca-Cola system inJapan. The result was an agreement on the three platforms of Inclusion, Communities, and Resources, and ninepriority issues to be addressed across Coca-Cola’s operations in Japan.
Purpose of Coca-Cola System Sustainability Activities
We are committed to creating a shared future and a sustainable business that can make a difference when addressing important
challenges facing Japan, including the environment, people’s lives, and our communities.

Japan Coca-Cola System Sustainability Framework:
Three Platforms and Nine Priority Issues
The nine priority issues are further subdivided into five priority topics specified for immediate action, and four focus
topics that require dedicated attention and action plans. We have also examined the impact of the three platforms
against the Sustainable Development Goals (SDGs) and are working toward progress against these SDGs.

Priority
topics
Focus
topicsInclusionCommunities

Resources

Gender rive impact throughD
two national platforms(Inclusion and Resources)
Initiatives that are
sustainable andadditionally have local
relevance

Packaging/PET

Age/Generation
Disabilities
LGBTQ

Water
Greenhouse gas emissions
Renewable energy

Going forward, the Coca-Cola system in Japan will develop and implement concrete action plans based on theidentified priority issues.
We will continue to report regularly on the progress and results of activities by Coca-Cola Bottlers Japan, Inc., in
partnership with the Coca-Cola system in Japan and seek to engage in activities aligned with the times, referring tothe opinions of NPOs, outside specialized organizations, experts and other third parties.

Process of Establishing the Sustainability Framework
Identified social issues in Japan
based on third-party studies

1

07

We selected 189 issues by categorizing
social issues from outside consultant
reports, ISO 26000, and government
agency reports, among others.

Plotted a materiality matrixof 33 issues and specified
15 priority issues

Narrowed down the list from
189 to 33 issues

2

We narrowed down the list of issues from
189 to 33 based on common sharedcategories, such as renewable energy andan aging society.

3

We assessed the importance of the
33 issues, and then specified 15 issues ofhigh social importance that were also highly
relevant to the Coca-Cola system in Japan.

Q&A with the head of IR and Corporate Communications, Raymond Shelton	How did you go about establishing
Q. 1 the Sustainability Framework?
In 2018, The Coca-Cola Company adopted the global
goal of realizing a World Without Waste. In addition
to promoting, for example, a 100% recycling rate forour packaging, we are tackling a variety of social
issues around the world, such as water resource
conservation and encouraging women’s success inthe workplace. Then, within the Coca-Cola system inJapan, we emphasized how to approach not only
global issues, but also issues unique to Japan thatthe country should take the lead on. We held
discussion forums throughout the system, and whilealigning with global goals, we identified priority
issues from among the social issues that Japan isconfronting. While aiming to address issues that canleverage our specific strengths, the most important
thing is building a strategy to bring about businessgrowth and protect our “social license to operate” asa local company fulfilling our mission to “Deliver
happy moments to everyone while creating value.”	What was your focus in establishing
Q. 2 the Sustainability Framework?
We focused on three different perspectives.
First, the relationship between Japan and therest of the world. We thought it was necessary toconsider all the issues from both a global and aJapanese point of view. Second, the relationshipbetween the present and the future. It was importantto select themes that incorporate the future as wellas the present. Third, we looked at social impact. Weemphasized the positive impact we could make byfully utilizing our strengths to meet society’s needs.
From these three perspectives, we haveidentified issues that balance Japan’s uniquechallenges with our strengths. Among these issues,
with regard to recycling packaging, we have set
goals that are both unique to Japan and even higher
than our global goals.

Conducted interviews within the
Coca-Cola system and adjusted
priority issues

4

We then added priority issues identified
through workshops with management andemployees of the Coca-Cola system inJapan, which increased the number ofpriority issues to 19.

Raymond Shelton
Executive Officer,
Head of Investor Relations andCorporate Communications

	When establishing the Sustainability
Q. 3 Framework, what was the reason
for engaging with the entire
Coca-Cola system in Japan?
What is most important is not the identification of
the problems, but the practicalities of implementing
the solutions. Issues and needs differ from region toregion—even within Japan—and we must respond
appropriately in each area, which can require
cooperation with external organizations andcoordination across our nationwide footprint ofCoca-Cola related companies in Japan. We have theopportunity to leverage the full scale of the
Coca-Cola “system’s” operations across Japan and,indeed, around the world. To that end, it is important
to collaborate across all five Coca-Cola bottlingpartners who have contacts with stakeholders ineach region, and the Coca-Cola (Japan) Company.
After formulating our Sustainability Framework, theCoca-Cola system in Japan has been strongly
promoting united efforts on our priority platforms of
Inclusion, Communities, and Resources.
Recently, the importance of sustainability has
only increased. In the years to come, we will use ourbusiness to work alongside our stakeholders topromote activities that help resolve priority issues.

Specified 3 platforms and9 priority issues

5

After discussions with the management of
the Coca-Cola (Japan) Company andCoca-Cola Bottlers Japan, 3 platforms and9 priority issues were agreed upon.

Workshop held in 201908

CCBJH Group Commitments toward Value Creation

The CCBJH Group is committed to achieving sustainable growth along with its corporate Mission. The Group has establishedbusiness strategies and set key performance indicators (KPIs) for creating economic value, and has set non-financial goals, or
CSV Goals, for creating social value. We are promoting a cycle of value creation by annually checking the progress of ourcommitments against the KPIs in a plan-do-check-act (PDCA) cycle.

COMMITMENT

CCBJH Group commitments (KPIs)

Economic
value

Management
strategy and KPIs

2021 Outlook KPIs
Earnings presentations
CHECK!

https://en.ccbj-holdings.com/ir/library/presentation.php

Social value Non-financial goals: CSV Goals

Products

Water

ClimatechangeWorld
Without
Waste

1 00%

Zero/low-calorie options for core brands

300%

FOSHU/functional product growth

1 00%

Front-of-pack calorie label and straightforward nutritional information

1 00%

Observation of The Coca-Cola Company Responsible Marketing Policy

200%

Water source replenishment. Focus on watersheds near our plants

30%

Water usage reduction by 2030

25%

Reduction in greenhouse gas emissions by 2030

Promotion of renewable energy

Design50%

Content of recycled PET in PET bottles by 2022

90%

Content of recycled PET in PET bottles by 2030

1 00%

Sustainable PET without fossil fuel use by 2030

1 00%

Adoption of recyclable packaging by 2025

35%

Further lightweight PET packaging by 2030 (compared to 2004)

Collect

1 00%

Collection percentage compared to sales volume by 2030

Partner

Extensive partnerships across industry and environmental organizations by 2030

Procurement

100%

Sustainable sourcing

Human rights

100%

Adherence to Supplier Guiding Principles across the
CCBJH Group value chain

10%

Female managers by 2025

20%

Female managers by 2030

10%

Employee volunteers

Diversity andinclusion

Society

1 million Participants in community programs

Baseline year is 2015 and target year is2025 unless otherwise stated.

Details on our CSV goals
CHECK!

09https://en.ccbji.co.jp/csv/csvgoal/OUTCOME

Value created (outcome)Economicvalue

The achievement of sustainable growthby promoting responsible business practices
and ensuring profitability

Social value
Consumersandcustomers

Environment

Business
partners/
suppliers

Employees

 elivering happy moments to consumers byD
providing refreshing beverages that support
consumers’ lifestyles, as well as promoting
more informed and healthier choices
Increasing awareness and support ofappropriate beverage habits romotion and development of a lowP
carbon society, a circular economy, and asociety that coexists with nature uilding of constructive relationships
B
aimed at shared sustainable growthLong-term support for producers, retailers,and food service establishments

 rovision of workplaces and opportunities
P
that enable employees to work with prideand to continue learning regardless ofgender, age, or generation

Communities evitalization of communities
RHelping address social issues

Shareholders reation of shareholder value by ensuringC
profitability and promoting ESG initiatives

10

CSV HIGHLIGHTS 2021

TOGETHER! FOR THE FUTURE

Response to the COVID-19
Pandemic

The CCBJH Group has implemented a range of initiatives to continuously support the communities
in which it operates amid the effects of the COVID-19 pandemic. To continue delivering happy,
refreshing moments to everyone, we have taken comprehensive measures, such as supporting ourcommunities, selling products designed to address the “with corona” era, and putting systems inplace that allow employees to work more flexibly. As a preferred partner of our customers, ouremployees are working as one to continue to supply safe and trustworthy products andcarry out business activities to overcome these challenging times together.

1

Support for communities

A simple face shield

Donating products
Number ofSince April 2020, we have provided approximately
product donations
32,000 cases of products free of charge toMore thanapproximately 365 medical institutions as well as
national and local government organizations for the
medical professionals working to prevent the spread
cases
of COVID-19 infections. We have also delivered
As of December 31,
approximately 14,000 cases of products to facilities
2020
that provide meals for children with busy or absent
parents and various social welfare facilities through a
total of 48 food banks. Going forward, we will continue to donate products
to support people in need during the COVID-19 pandemic.

46,00011

 onation ofD
infection prevention equipment
In April 2020, when there was a shortage of personal
protective equipment for medical professionals, theCoca-Cola Red Sparks men’s rugby team donated3,000 plastic raincoats that were originally meant for
use by spectators to the city of Osaka to be
repurposed. As part of plastic resource recycling
efforts, the Coca-Cola system has manufactured
approximately 11,000 simple face shields made fromrecycled PET materials and is donating them tomedical institutions through public organizations.

2

New forms of businessassociated with the“with corona” era

CHECK!

Supporting website for consumers andbusiness partners

https://en.ccbji.co.jp/business/together/

From June 2020, we started applying an antivirus/antibacterial treatment toour vending machines by sticking a protective film to product selection
Vending machines
buttons and dispensing slot covers. The protective film has been certified byfor selling masks
the Society of Industrial-Technology for Antimicrobial Articles (SIAA) and hasreceived the mark that certifies its antiviral and antibacterial properties andmachinesthat strict standards have been met.
in Tokyo and
The CCBJI Group company FV Japan commenced mask sales at its
3 prefectures
vending machines in July 2020, and is working to provide an
As of September 2020
environment where masks can be purchased without face-to-facecontact. As one of the infection prevention measures being
promoted by the Tokyo Metropolitan Government, and in
Vending machines
Vending machines
cooperation with the Japan Soft Drink Association (JSDA), thewith Tokyo Metropolitan
with antiviral/
Government COVID-19
CCBJI Group is also in the process of attaching stickers listing
antibacterial treatment
safety sticker
COVID-19 safety measures to approximately 70,000 vending
Approx.
machines in the Tokyo metropolitan area to aid publicawareness of COVID-19. We will continue to pursue newkinds of sales activities while implementing comprehensive
As of December 2020
As of December 2020
measures for consumers and business partners.

22

65,000370,000Aiming for flexible ways of working during the “with corona” eraIn the “with corona” era, the CCBJH Group is encouraging work styles that are consistent with the changes in society
brought about by the effects of COVID-19. While accepting change with integrity, we are implementing a variety ofmeasures to balance risk countermeasures and business continuity while ensuring employee safety and sustainable growth.

 alancing risk countermeasures andBbusiness continuity
As a result of having actively introduced IT tools—suchas the distribution of smartphones to all employees—
and smoothly shifting to new ways of working in
response to the “with corona” era, CCBJI was selected
as an honorable mention in the new lifestyle support
category at the 38th Information Technology Awards
2020. We also worked on our telework program, a super
flextime system with no core working hours, thepromotion of a bicycle commuting policy, the expansionof satellite offices, and the holding of welcome
ceremonies online. In 2021, we announced a special paid
leave policy for employees to receive COVID-19
vaccinations during work hours.

Major initiatives for the “with corona” era
Promotion of teleworking
Expansion of satellite offices

 egular internal messaging
Rfor employees
We are utilizing the company intranet and othercommunication tools to provide information and set up
a Q&A page regarding COVID-19 for employees, as well
as sending messages from management regarding work
styles for the “with corona” era. These tools are also
used for “message relays,” in which employees can telleach other about their work and how they are doing tofeel closer to each other even in the midst of the
COVID-19 pandemic. Colleagues’ responses, regardlessof geographical area and department, become
encouragement for everyone.

Message Relay
July 2, 2020

“Activities that are always close to
our customers. Together!” romotion of bicycles as alternative means ofPcommuting romotion of IT tools, such as distribution ofP
smartphones to all employees
Special paid leave for COVID-19 vaccination

12

CSV HIGHLIGHTS 2021

REBORN

Hiroshima Plant:
Recovery from Natural
Disaster

The CCBJI Hongo Plant (Mihara City, Hiroshima Prefecture), which was severely damaged byflooding following torrential rainfall in western Japan in July 2018, moved to a new location within
the city in June 2020 and was reborn as the new Hiroshima Plant.
A tour area in the plant was completed in October of the same year. While delivering safe andtrustworthy products, we will use these facilities to contribute even more than before to thereconstruction and development of the region so that the Hiroshima Plant will become a symbol ofreconstruction not only for the people who work there, but also for everyone in the local
community.

Hiroshima Plant History
July 2018

Following torrential rainfall in westernJapan, 2.5 meters of floodwater
inundated the Hongo Plant, halting
operations due to serious damage tothe production lines and automatedwarehouse.

13

June 2019

After rapid restoration work, we
decided to move to a location about
4 kilometers from the Hongo Plant.
After holding a service to pray forsafety at the planned site, we started
full-scale construction.

June 2020

Featuring a production capacity
about 1.5 times that of the damaged
Hongo Plant, the new plant has beenreborn to play a key role in productsupply to the Chugoku and Shikoku
areas.

October 2020

At the completion ceremony, CCBJI
Representative Director and President
Calin Dragan expressed his gratitude
to all those involved, including thegovernor of Hiroshima Prefecture,
Hidehiko Yuzaki, and the mayor of
Mihara City, Yoshihiro Okada.

Building on the concept of achieving an advanced and appealing plant where people from all over the world cangather, the goal of the new Hiroshima Plant was not just to restore the lost Hongo manufacturing capacity, but tocreate a top-class facility we could be proud to present to the world in terms of the environment, quality,
working conditions, employee training and contribution to the community.

1

Process controls for
manufacturing high-quality
products

To maintain safe and high-quality product standards, we
carry out quality control assessments using automatedinspection machines. These automated routines ensurethat process controls are carried out in accordance withhigh standards on the latest equipment, which hasenabled the efficient manufacture of high-quality
products.

3

Introduction oflatest IoT technology

We have installed a system to remotely monitor the
status of equipment, and operate the production
facilities and utility equipment in a stable manner. We
have also achieved rigorous labor and energy savings,
by such means as automating the process from thedelivery of ingredients and raw materials to supply
shipments and lot management, and by digitizing thecreation of forms.

5

2World-class occupationalsafety conditions

We manage operations using KORE (Coca-Cola
Operating Requirements), our unique global
management system, which is more rigorous thandomestic standards. We are also working to create safe
workplaces by implementing equipment design andworking conditions based on strict safety standards andrisk management protocols.

4

Elimination of
unnecessary work andnew technological innovation

Water and energy consumption used to be calculatedwith spreadsheets, but we have reduced the time spenton calculation and management through automation.
By incorporating new technologies, we are realizing
energy savings and utilizing timely data as part ofpromoting invigorated improvement activities.

New role as the center for communication with the community

In the plant, we have set up an innovative tour facility
that serves as a place for interacting with people fromall over the world. We have prepared a variety ofsurprising and fun experiences with the goal of creatinga plant tour where visitors can immerse themselves inour best-in-class production processes. Through these
activities, we will contribute to the process of regional
revitalization as a new symbol of the Hiroshima area.

14

CSV HIGHLIGHTS 2021

WORLD WITHOUT WASTE

Toward a World
Without Waste

The Coca-Cola Company announced its global vision, a World Without Waste, in 2018. As part ofrealizing that vision, in January of the same year, the Coca-Cola system in Japan launched its 2030
Packaging Vision, which is made up of three core elements—design, collect, and partner.
In July 2019, the Coca-Cola system in Japan renewed its goals to exceed the environmental
targets of the global initiative, including shortening the timeline to achieve certain targets at an
earlier date, and it is making progress with specific initiatives.

Three core elements of the 2030 Packaging Vision
Through the promotion of its bottle-to-bottle initiative, the Coca-Cola system in Japan isworking to realize the 2030 Packaging Vision, with a primary goal of transitioning all PET
bottles to 100% sustainable materials by 2030.

15

DesignWe are promoting bottle-to-bottle recycling to increase the usage of recycled
PET plastic content to at least 50% by 2022 and 90% by 2030, while aiming forthe complete introduction of PET containers that eliminate the use of new
fossil fuels.

Collect

Under our Collect initiative, our aim by 2030 is to be able to recover a volume
of PET bottles equivalent to that of the products we sell in Japan.

Partner

Under our Partner initiative, we are working to build and maintain more robust
recovery and recycling schemes through collaboration with the national andlocal governments, the beverage industry, and our communities.

DesignCollect

Partner

第21回 グリーン購入大賞
大賞受賞

DesignPromotion of bottle-to-bottle initiative
Based on our 2030 Packaging Vision, the promotion of the bottle-to-bottle* initiative by
the Coca-Cola system in Japan is steadily progressing toward its goal. In 2020, as a resultof having adopted 100% recycled PET bottles for both I LOHAS Natural Mineral Water andI LOHAS Natural Mineral Water Labelless, we received the Plastic Resource Recycling
Special Category Grand Prize at the 21st Green Purchasing Awards in recognition of ourcontributions to a recycling-oriented society.
Since February 2021, we have also been engaged in awareness-raising activities, suchas the introduction of the “Recycle Me Again” logo on all our recyclable product packages,
to aid in the realization of a circular economy for plastic. In May 2021, We have expanded
our 100% recycled packaging to include our flagship brand Coca-Cola and
GEORGIA JAPAN CRAFTSMAN in small PET packaging.

Bottle-to-bottle
usage rate ofrecycled PET plastic

28%(+7% year on year)*An initiative to collect used PET bottles and make them into new PET bottles.

From bottle to bottle

Label removal andplastic granulation

START

Collection of used
PET bottles

Shred into about
8 mm2 flakes

GOAL!!

PET bottle raw
material

Formed into
new bottles

Cap removal

The flakes are sorted basedon density, and the cap
plastic is removed by using
the difference in buoyancy

Washing

The flakes are cleaned inorder to remove impurities

DesignCollect

Reduces CO2 emissions by approximately 60%
per bottle**When switching from regular PET bottles tobottles with 100% recycled PET materials

Partner

Reducing PET plastic usage
through package lightweighting

Realizing 100% recycling with
Seven & i Holdings

In 1996, a 500 milliliter PET bottle for Coca-Cola’s waterbrand in Japan weighed 32 grams. Launched in 2009,
the bottle for I LOHAS Natural Mineral Water had been
reduced to approximately 12 grams, which at the time
was the lightest in Japan.* We are continuously looking
at opportunities to reduce the amount of PET plastic
used in our products while maintaining bottle quality
and performance.

Hajime Ryokucha green tea, a product jointly developedwith Seven & i Holdings Co., Ltd., has been on sale sinceJune 2019. The product is sold in 100% recycled PET
bottles made only from PET resin generated from therecycling of used PET bottles
collected from Seven & i Group
stores.
By switching to 100% recycled
PET bottles, we have achieved a
reduction in CO2 emissions.

32g
1996

Further
reductions
in package
weight12g
2009-20g (-63%)*As of March 2009. Estimate for 500 milliliter
PET bottles manufactured in Japan.
Coca-Cola (Japan) Company, Ltd. estimate

16Platform

Inclusion
What weare doing etting an inspiring example of an inclusive workplace cultureSNurturing the talents of our diverse workforce—and engaging
with the needs of our communities

Progress against CSV Goals
Inclusion
Gender
Age/Generation
Disabilities

Since we already achieved our 2025 goal of 6% female
managers in 2021, we have set a new goal of 20% by2030. We are promoting initiatives to provide a workplaceenvironment and support systems to foster a CCBJH
organizational culture where every employee can
independently build a career where they can shine.

LGBTQ

Diversity and inclusion initiatives
The CCBJH Group has made the promotion of diversity andinclusion (D&I) as one of its key management priorities. We
are building a diverse workplace that meets the various
needs of our business environment, reflects our shoppers
and consumers, and supports the Group’s sustainablegrowth. At the same time, we want to create a workplace

Medium- to Long-term Vision
for Diversity and Inclusion
By respecting the diversity of our workforce,
we will provide opportunities to enable all
employees to leverage their full potential,
regardless of gender, age, disability, race,
nationality, sexual orientation, and otherattributes, such as gender identity andexpression, and unaffected by factors that
could restrict their ability to work.

Main inclusion initiatives
CHECK!

17https://en.ccbji.co.jp/csv/inclusion/

where each and every one of our employees, who comefrom a wide range of backgrounds, can demonstrate theirabilities without losing their desire to improve.
We also promote diversity at the management level bywelcoming differences in background such as nationality,
gender, age, and experience in the Board of Directors andby considering and making decisions on issues fromvarious perspectives.

Providing opportunities for all employees to leverage
their full potential, regardless of individual attributes andunaffected by factors that could restrict their ability to work.
Individual
attributes

GenderAge

Nationality

Sexualorientation
Genderidentity &expression

Factors restricting
ability to work

Race
Time

Disability

HealthLanguage

Gender

Initiatives to encourage women’s
success in the workplace

Updated target ratio for female managers to 20%
The CCBJH Group is promoting the active participation of
women out of respect for the individuality of each one ofits employees, and in order to continue to generateinnovation by incorporating diverse values and ideas.
Within the CCBJH Group, there are many female employees
who give up returning to work or miss out on careeradvancement opportunities due to reasons such as taking
maternity or childcare leave and family-related time
constraints, which are unrelated to motivation or work
ability. CCBJH Group is creating an environment in which
all employees, regardless of gender, are able to maintain abalance between work and family care, and to foster anorganizational culture that supports employees’ individualcareer development needs.
In order to increase the ratio of female managers, weare promoting a workplace culture and support system tohelp increase the number of female employees who
proactively choose to drive results and advance theircareers. In January 2021, we achieved our initial target of
6% female managers by 2025 ahead of schedule. We have
set new targets of 10% female managers in 2025 and 20%
in 2030.

Target ratios for female managers

20%

6.2%

4.6%

(+1.6% YoY)

December 31,
2019

January 31,
2021

LGBTQ

10%

2025

Targets

2030

In December 2020, we announced our endorsement of
Business for Marriage Equality (BME), a campaign callingfor companies to support
marriage equality. BME
works to raise thevisibility of companies
that support thelegalization of same-sex
marriage (marriage
equality) in Japan.
In addition, our LGBTQ-related initiatives received thehighest gold ranking in our first application to berecognized in the PRIDE INDEX 2019 program, which is anassessment by the “work with Pride” (wwP) organization.

Age/
Generation

Programs to nurturenext-generation leaders

CCBJI established Coca-Cola University Japan (CCUJ), its
comprehensive program to nurture next-generation
leaders, to develop employees who will drive thetransformation and future growth of the Coca-Cola system
in Japan. Through collaboration with The Coca-Cola
Company, CCUJ will also serve as a foundation to organize
global leadership training courses and overseas study
programs aimed at developing competent and capable
employees who will share their enriched knowledge
extensively with Coca-Cola bottling partners around theworld.
In addition, the Global English Transformation (GET)English language proficiency program not only allows
employees to gain knowledge from overseas, but it also
supports their English-speaking ability to support theiradvancement in the company. We are aiming to develop
employees who can play an active role globally by linking
these efforts to the revitalization and growth of the entire
organization.

Targets

Revised company regulations toprovide equal opportunities formembers of the LGBTQ community

As an initiative to promote diversity and inclusion (D&I), the
CCBJH Group amended the definition of “spouse” in thecompany regulations (Employment Regulations, etc.) in
January 2020 to provide equal opportunities for employeeswith diverse lifestyles, including LGBTQ employees. This
allows all employees to take advantage of welfare benefits,
such as childcare leave and family care leave, regardless ofthe gender of their partners or their marital status. We also
amended our Human Rights Policy and D&I Policy toinclude gender identity and expression in addition to sexual
orientation. Furthermore, we provide e-learning programs
for all employees in an effort to expand people’s awarenessthroughout the organization.

18

Platform

Communities
What weare doing ontinuing our legacy of partnering with communities where weClive and work to support diverse needs and ambitions.
Harnessing the potential of communities and driving action on
our core platforms

Progress against CSV Goals
Communities
 rive impact throughD
two national platforms(Inclusion andResources)
Initiatives that are
sustainable andadditionally have local
relevance

Company
sportsOur efforts in partnering with communities have achieved
various milestones such as completion of the Hiroshima
Plant tour facility, receiving the Prime Minister's Award forthe greening of our Ebino Plant, and our women’s field
hockey team winning three championships in Japan.
Furthermore, to explore new ways of communicating withour communities we held Virtual Plant Tours and online
seminars.

Online exercise videos
for people staying at
home

Energizing communities
through sports

The CCBJH Group manages the Coca-Cola Red Sparks
men’s rugby team and the Coca-Cola Red Sparks women’s
field hockey team. Both teams not only deliver game-day
thrills to a large number of local fans, but also proactively
participate in local events as part of building vibrantcommunities.
A member of the Japan Rugby Top Challenge League,
the Coca-Cola Red Sparks team is based in the city of
Fukuoka. In 2020, while many games and events werecancelled due to the impact of the COVID-19 pandemic, weundertook new initiatives, such as releasing videos createdby the players and coaches with exercises that people
could do at home to help them stay healthy andcompensate for the lack of exercise associated with staying
at home.
The Coca-Cola Red Sparks women’s field hockey teamis based in Hiroshima and is a member of the Hockey Japan
League (HJL). Amid the restrictions placed on practices
and games, the women’s field hockey team won threemajor domestic championship titles* for the first time since
the team was formed. The team has received numerous
awards from local governments and regions for its
achievements, including both the Hiroshima Prefecture
Governor’s Physical Education and Sports Award, and theHiroshima Citizens Award (2020).

Note: Rugby team to terminate its activities at the end of 2021. We
would like to express our heartfelt gratitude to all of you who
have given us your support.
For the first time, thewomen’s field hockey
team won three annual
domestic titles*42nd All-Japan Women’s Hockey Company League, the HJL Takamadomiya
Memorial Cup for 2020, and the 81st All-Japan Women’s Hockey
Championship

Main communities initiatives
CHECK!

19https://en.ccbji.co.jp/csv/community/Supportingtheenvironment

Ebino Plant receives Prime Minister’sAward in 2020 for promoting thegreening of business sites

The CCBJI Ebino Plant (Ebino City, Miyazaki Prefecture)received the Prime Minister's Award in 2020, which is
granted to individuals and organizations who havedemonstrated outstanding contributions in promoting thegreening of business sites.
An important production and logistics base in thesouthern Kyushu area, the Ebino Plant is a park-based
facility in harmony with the rich, natural environment. The
plant and its grounds attract as many as 150,000 visitors
annually, including 70,000 visitors for our plant tours. In theplant’s water source area, we have concluded agreementswith Ebino City and local forestry associations to carry out
forest conservation activities and promote the protectionof water resources. This award is normally presented at theCeremony of awarding the MIDORI Prize (hosted by the
Cabinet Office), which is held in April each year. However,the ceremony was cancelled to prevent the spread of
COVID-19, and an award presentation ceremony was heldat the Miyazaki prefectural government’s office inNovember 2020.

Comprehensive
supportPartnering with local governments toaddress regional issues

The CCBJH Group supports emergency product supply
agreements and tourism promotion agreements with local
governments and organizations within its sales areas inorder to strengthen collaboration with these importantpartners and stakeholders. The Group is also continuing toinstall regional support vending machines within its sales
areas to create value in the region through its core
beverage business.

Emergency agreements
We have concluded emergency agreements in preparation
for large-scale disasters across our sales areas. These
agreements are to ensure that people impacted by anemergency can rapidly
access drinking water, so wewill prioritize water supply
Disasterto emergency shelters andagreements with
provide residents withlocal governments
beverages free of charge
and organizations
from vending machines. Asof the end of 2020, we had
agreements with 1,059 local
governments andorganizations.

1,059

Tourism promotion agreements

Support foraddressing
challenges

A collaborative program toaddress community challenges

In Miyagi, Fukushima, Mie, and Miyazaki prefectures, the
CCBJH Group is supporting initiatives designed to help solve
regional issues. Based on collaboration between industry,
government, academia, and nonprofit organizations—for
example, regional administrations, educational institutions,and municipal organizations—the initiatives are conducted
through a variety of projects, such as youth-led workshops,
activity presentations, and awards systems.
The event “Connecting us with society through happiness:
SDGs Workshop Mie Mirai” was held beginning in 2018 as acollaboration among Mie Prefecture, Dr. Masao Aoki’s researchlab (Faculty of Humanities, Law and Economics, Mie
University), the nonprofit organization M Bridge, and CCBJI.
In this event, participants sought ideas to increase Mie
Prefecture’s attractiveness and solve its problems throughdialogue, and envisioning a happy future. We will continue toprovide opportunities for interaction and creativity so that
local communities can take the initiative in solving problems
in local communities.

We have concluded tourism promotion agreements withlocal governments such as in Chiba, Kanagawa, Saitama,
and Kyoto prefectures, for the purposes of promoting
tourism in the region.
Based on these
agreements, we aredeveloping Coca-Colabottles with uniquedesigns in each region
and carrying out
initiatives that include
donating a portion of
the sales proceeds.

Community support vending machines
We are promoting the installation of community support
vending machines with unique illustrations at sightseeing
locations and tourist attractions within sales areas. A
portion of the sales proceeds of The Coca-Cola
Company’s products
from these support
vending machines isdonated to local
governments andNPOs in those areasand is used to fundactivities like regional
revitalization andcommunity
development.

20Platform

Resources riving continuous improvement in the sustainable use ofD
resources
Supporting the environmental conservation of our country

What weare doing

Progress against CSV Goals
We are making steady progress toward realizing a World
Without Waste with the cooperation of the Coca-Colasystem in Japan. In addition to implementing businesssolutions and projects for our bottle-to-bottle resource
recycling initiative—in collaboration with local
governments, companies, and beverage industry groups—
we are making progress beyond our goals for water
resource replenishment by entering into new agreementswith local communities in our plants’ water resource areas,
and through ongoing cooperation.

Resources
Packaging/PET
Water
Greenhouse gas emissions
Renewable energy

Initiatives for realizing a World
Without Waste

Resource
recycling

The Coca-Cola system in Japan is promoting initiatives
centered on the three elements of design, collect, andpartner to realize the global World Without Waste visionadvocated by The Coca-Cola Company. Unique packaging
targets for the Coca-Cola system in Japan include: the useof sustainable materials, such as recycled PET, in all PET
bottles by 2025; recovering a volume of PET bottles
equivalent to that of the products sold in Japan by 2030;
and the building of stronger packaging collection andrecycling schemes in collaboration with partners.

2030 Packaging Vision of the Coca-Cola System in Japan—Roadmap and Results (Updated March 2021)

2019 results 2020 results 2021 results 2022 targets 2025 targets

2018 results
DESIGN
Bottle to bottle
Sustainable
materials

17%

Approx.

Approx.

bottle-to-bottle rate

21 %Approx.

bottle-to-bottle rate

28 %bottle-to-bottle rate

At least
100% rPET bottles introduced
for Coca-Cola andGeorgia Japan Craftsman

I LOHAS Natural Mineral Water
100% Recycled
PET bottle launched

Amount of
PET plastic used

I LOHAS Natural Mineral Water
Labelless launched

Appropriate collectionof packaging

Consortium established by
Tokyo Metropolitan Government andJapan Soft Drink Association (2020)

Variousinitiatives

bottle-to-bottle rate

Reduction of 35% reduction

AmountCollected

PET bottle collection businesswith Higashiyamato City,
Tokyo (2020)“Recycle Me Again”
logo introduced (2021)

Collect one PET bottle
for every Coca-Cola product sold in Japan

Joint survey conducted with
the Nippon Foundation (2019)

Recycling awareness event held with
Universal Studios Japan (2020)

Collaborate with a range of partners to build andmaintain more reliable packaging collection andrecycling schemes

Fully recycled PET bottle
recycling realized forHajime Ryokucha Ichinichi Ippon(2019)
Expanded to a
Hajime Ryokucha series(2020)

Main resources initiatives

21

Zero new fossil fuels

Switch to rPET orbio-based PET plastic
for all PET bottles

AmountSold

PARTNERCHECK!

bottle-to-bottle rate

10% 100
100%
90 %Bio-based
PET plasticof PET plastic used per product(compared with 2004)

COLLECT
Collect

50 %Use rPET orbio-based PET plastic in
PET bottles ofall products

2030 targets

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

Design

Expansion oflabelless products

In August 2020, the Coca-Cola system began selling labelless
Ayataka, Sokenbicha, and Canada Dry The Tansan Strong
products exclusively through major online shopping
channels. By introducing these labelless products that areboth environment friendly and easier to recycle, we areresponding to the increased consumption rates in homes
while contributing to reducing the impact on theenvironment.

Partner

In September 2020, Universal
Studios Japan and its official
corporate marketing partners,
Coca-Cola (Japan) Co., Ltd. and
CCBJI, held a recycling
awareness event in the theme
TM & © 2021 Sesame Workshop.
park with the cooperation of
TM & © Universal Studios.
All rights reserved.
Osaka City to promote a circular
economy for plastic. We created learning opportunities byfeaturing eco-bags made from PET bottles with original
designs, and entertainers performed a show to present therecycling process.

PartnerCollect

PET bottle collection business with
Higashiyamato City, Tokyo

In October 2020, CCBJI and Higashiyamato City, Tokyo,
concluded a comprehensive collaboration agreement forcommunity revitalization and, as part of that agreement,
started to work jointly on a PET bottle collection venture.
We will promote the bottle-to-bottle initiative to collectand recycle used PET bottles to be turned into new PET
bottles, while
collaborating on, forexample, theinstallation of
automated PET bottle
collection machines
across the city.

Collect

Recycling pilot project with Welcia
Holdings

In September 2020, CCBJI and Welcia Holdings Co., Ltd.
embarked on a pilot project for the purpose of creating abottle-to-bottle recycling model to turn PET bottles
collected at Welcia drugstore locations into raw material
for new PET bottles. For this project,collection boxes have been installed at
11 Welcia drugstores in Oyama City,
Tochigi Prefecture. CCBJI is responsiblefor designing and monitoring the whole
sequence of recycling processes, frompicking up the sorted PET bottles toturning them into recycled raw material,
and CCBJI plans to expand the project
area and number of stores after acertain period of implementation.

Recycling awareness event with
Universal Studios JapanTM

Collaborative efforts in thebeverage industry

We have endorsed the Japan Soft Drink Association’s
declaration on the recycling of plastic in the beverageindustry— announced in 2018—with the goal of achieving
the 100% effective utilization of PET
bottles by fiscal 2030, and we arecollaborating with our industry peers ininitiatives. Part of the bottle-to-bottle
Tokyo Project, which was established with
the Tokyo Metropolitan Government in
2020, involves conducting trials to, for
Newly designed
example, change consumer behavior withrecycling bin(hole is facing
regard to sorting recyclables and to
downward)
prevent anything other than empty bottles
from being placed in recycling bins.

TOPICS
Joint project to recycle PET raw material
with Far Eastern New Century (Taiwan)
In July 2020, CCBJI started a joint project with
Taiwan’s Far Eastern New Century Corporation(FENC), one of the world’s largest manufacturers of
PET resins and polyester fibers, to commercialize
PET bottles that use raw material from chemicallyrecycled* PET plastic. A portion of the raw material
for recycled PET resin used in this project ismanufactured by FENC using a new method ofchemical recycling.
After carrying out
pilot sales in CCBJI
business areas, we will
be looking tocommercialize thisPET raw material in
the future.
*The process of recycling by returning used resources to theirraw material form through chemical treatment.

22Platform

Resources

ClimatechangeClimate change
initiatives

timely end-to-end product deliveries from the production
site all the way to business partners and vending machines.
The Shinsei logistics network optimization project isdriving the strategic transformation of our logistics as awhole by introducing new distribution centers—primarilymega distribution centers and others such as the Hakushu
and Kumamoto warehouses—and reorganizing as well as
consolidating hub warehouses and sales centers to
streamline complex supply chains. Through these efforts,
the CCBJH Group is optimizing its supply chain to resolve avariety of issues, such as reducing their environmental
impact.

In February of 2021, CCBJI began operation of its Saitama
Mega Distribution Center, which is one of the largest
automated distribution centers in terms of storage andshipping capacity within the Coca-Cola system in Japan.
Logistics operations, such as the sorting that had previously
been conducted at sales centers, and inventory storage
spaces have been consolidated at the Saitama Mega
Distribution Center. We are building a network that achieves	Improving efficiency ofequipment at each of ourplants	Developing projects toimprove energy efficiency,such as in productivity andyield improvements at allplants	Starting in 2019, seven new
production lines have begun
operations, and we are further
promoting reduced energy
use

Production
initiatives

Working on solving avariety of issues bystreamlining andsimplifying complex
supply chain networks
Saitama Mega
Distribution Centers

Kumamoto
warehouse

Logistics andtransportation
initiatives

Hakushuwarehouse

Note: A kashi Mega Distribution
Center is scheduled forcompletion at the end of 2022

Sales
initiatives

RenewableenergyHakushu Plant’s utilization of Furusato
Hydropower Plan renewable energy

Since 2019 and the conclusion of a contract for the
Furusato Hydropower Plan offered by Yamanashi Power	Reviewing number of transit
routes	Reducing the number oftransportation vehicles
	Using larger vehicles,
improving cargo load ratios,
and implementing modal shift	Streamlining delivery routes
	Reducing the number ofvehicles by reviewing oursales system	Reducing GHG emissions andfuel consumption by switching
to smaller vehicles

	Introducing sales equipment, such as
vending machines, coolers, anddispensers to aid in reducing power
consumption and GHG emissions
	Expanding the use of peak shift vending
machines that reduce daytime power
consumption by up to 95% by shifting
the electricity used for cooling tonighttime and not utilizing power during
the day

Plus—a power supply brand jointly operated by Yamanashi
Prefecture and TEPCO Energy Partner, Incorporated—ourHakushu Plant has been utilizing hydroelectric power.
Through this initiative, we are working to reduce
environmental impact by eliminating CO2 emissions
associated with electricity use.

Initiatives for improvements in the Supply Chain Management (SCM) Division
To nurture employees and produce results, we have put in place an organizational
excellence (OE) certification system at SCM headquarters to engage in problemsolving by ranking problems in four stages from small improvements in theworkplace to management issues according to the scale of improvement. It has
become standard practice for employees to submit I-cards (improvement proposals)
for issues they notice during their work and improvement ideas. Last year, 99% of
SCM employees submitted one or more I-cards a month. Exceptional I-card
proposals are rewarded quarterly and shared with other plants and departments tofurther enhance the effectiveness of the improvements. In 2020, the I-card
Excellence Award in the environment category was won by Takatoshi Aonuma fromthe Tosu Plant for his proposal to reduce gas consumption by reviewing boiler
operations, which assists in terms of both the environment and cost.

23

Recipient of the I-card
Excellence Award in theEnvironment Category

Takatoshi Aonuma(now at the Kiyama Plant)

Waterwater used and to reuse the water we do use by installing
production lines equipped with the latest technology, and byimproving the manufacturing processes and plant
equipment by monitoring them on a daily basis. With thetarget of returning to nature a volume of water equivalent tothe amount used for manufacturing products at our plants,
we have also entered into agreements with local
communities and organizations. Alongside members of local
communities, we are promoting activities to enhance water
source replenishment, which is the ability for the watershedareas supplying groundwater to our local manufacturing
facilities to sustainably cultivate and store water.

CCBJI’s initiatives
regarding water

The Coca-Cola system in Japan considers issues related towater a priority topic to be addressed in its Sustainability
Framework. The CCBJH Group is promoting various
initiatives with the aim of achieving its own non-financial
CSV Goals, which include a 30% reduction in water usage by2030 (compared to 2015) and maintaining a water source
replenishment rate of 200% by 2025.
At our plants, we are working to reduce the amount ofReduce & Recycle

Return water tonature after strictwater treatment

Water used for manufacturing

12,560,322 m

Water used for manufacturing
 ssess water sourceAvulnerability
Draft and execute
water resource
conservation plans

3

Reducewater used

Water
reuse

(-5.7% year on year)

River

Water used in products

3,883,092 kl

From groundwater reserves
and rivers to plants

Groundwater

Plant

Replenish

Cultivate water resources
through forest preservation,
rice field flooding, andgrassland regeneration

Increase groundwater
recharge capacity, cultivate
underground reservoirs, andreturn water to nature

Replenishment rate364%(+13% year on year)

Water usage per liter of product

Water resource
conservation agreements

3.23 L/L(-0.03 liters per product liter year on year)

16/17 plants(+1 year on year)

Entering into agreements for the purpose ofwater conservation in plants’ water resource areas

Hakushu Plant
Agreement with Yamanashi Prefecture
Based on a collaboration agreement for the cultivation ofwater resources, which was concluded in July 2020, CCBJI
and Yamanashi Prefecture have commenced collaboration
in a variety of activities related to cultivation and effective
utilization of water and forest resources. These activities
primarily involve promoting water resource cultivation (theconservation of an environmentally sound water cycle) andthe provision of information in Yamanashi Prefecture. We
are also working to support forest management in 282
hectares of prefectural forest
land along the watersheds of
the Nagare and Kakubosawa
rivers originating on Mt.
Amagoi, which makes up thewater resource area for
CCBJI’s Hakushu Plant.

Saitama and Iwatsuki plants
Renewal of agreement with Nippon Paper Industries
In December 2020, CCBJI, Nippon Paper Industries Co.,
Ltd., and Marunuma Kogen Resort Co., Ltd. renewed theirthree-party agreement with respect to collaborating onforest management for the purpose of water resource
replenishment. CCBJI supports the necessary management
work, such as tree thinning and road maintenance, in thearea (1,746 hectares) in order to maintain the environmentof the Saitama and Iwatsuki plants’ water resource area.
We are also collaborating on activities geared toward
promoting forest management and preservation, as well as
strengthening
collaboration with theother parties byexchanging necessary
advice and information.

Plant initiatives and water resource area activities
CHECK!

7,963 ha(+350 ha year on year)(-4.8% year on year)（WUR：Water Use Ratio）

Water

Approx.

Natural water resource areas

Water used in products
Water resource
conservationagreements in water
resource areas

Replenishment area

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

The Coca-Cola “Learn from the Forest” projects
CHECK!

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

24

Platform

Resources

CCBJH Group’s
CO2 Emissions
Results andAccounting
Methods
We consider the mitigationof climate change a crucial
issue to address throughout
the course of our businessactivities. As such, wetransparently disclose
corporate greenhouse gas
emissions, of which CO2 is a
primary example, and share
information with our many
stakeholders about theoverall state of greenhousegas emissions, potential
countermeasures, and othertopics in the hope that thiswill lead to further emissions
reduction.
Source:	“Supply-chain emissions inJapan,” Ministry of theEnvironment, 2015
	www.env.go.jp/earth/ondanka/
supply_chain/gvc/en/files/
supply_chain_en.pdf

CCBJH Group’s scope 1, 2, 3 emissions by source

Fuel- andenergyrelated
activities notincluded in
Scope 1 or
Scope 2

EmployeecommutingBusiness travel

Indirect emissions from theuse of electricity, heat, or
steam supplied by others

Category

7

Franchises

Scope 2Category

Category

3

14

Transport
and delivery(upstream)

Category

Category

6

4
Direct greenhousegas emissions
by the reporting company

Category

Category

Category

Category

Category

1

4

9

10

11

12

Purchased
goods andservices

Transport
and delivery(upstream)

Transportationand delivery(downstream)

Use of soldproducts

End-of-life
treatment ofsold products

Scope 1

Processing ofsold products

Category

2
Fixed assets

Category

Scope 3Category

Category

15

8Category

Category

5

13

Waste
generated inoperations

Leased assets(downstream)

Leased assets(upstream)

Investments

Accounting process
Calculation scope

Accounting method

Manufacturing

All bottling plants of the CCBJI Group (17 plants) andassociated equipment within plant premises, as well as
Q’SAI Group’s Fukuoka Konominato Plant and Q’SAI Farm
Shimane otal energy use (GJ) = total of (energy use for each energy type ×Tthermal conversion factor*)
Greenhouse gas (CO2) emissions (thousand t-CO2) = total of (energy
use for each energy type × CO2 emissions factor*)

Logistics

The CCBJI Group’s business logistics, including distribution
from all CCBJI Group plants (17 plants) to the market(customer retail outlets, vending machines, etc.) and the
Q’SAI Group’s business logistics, including distribution fromthe abovementioned plant and farm to the market(customer retail outlets, vending machines, etc.). Also
includes third-party (outsourced) transportation.

 otal energy use (GJ) = total of (energy use for each energy type ×Tthermal conversion factor*)
Greenhouse gas (CO2) emissions (thousand t-CO2) = total of (energy
use for each energy type × CO2 emissions factor*)

Offices

Buildings operated by the CCBJH Group (head office, sales
centers, distribution centers, and plant-associated facilities,etc.) otal energy use (GJ) = total of (energy use for each energy type ×Tthermal conversion factor*)
Greenhouse gas (CO2) emissions (thousand t-CO2) = total of (energy
use for each energy type × CO2 emissions factor*)

Sales

Vending machines in operation within CCBJI’s sales area otal energy use (GJ) = annual vending machine electricity use ×Tthermal conversion factor*
Greenhouse gas (CO2) emissions (thousand t-CO2) = annual vending
machine electricity use × CO2 emission factor**Sources for thermal conversion factors and CO2 emissions factors
	For fuel sources other than electricity, the CCBJH Group uses a thermal conversion factor and a CO2 emissions factor from the Greenhouse Gas Emissions Accounting and Reporting
Manual Version 4.7 (Ministry of Environment and Ministry of Economy, Trade and Industry; January 2021).
	For electricity, the thermal conversion factor is 9.97 MJ/kWh for daytime electricity, as stipulated in Enforcement Regulations for the Law Concerning Rational Use of Energy(revised March 31, 2020), and the adjusted CO2 emissions factor is 0.470 kg-CO2/kWh, from Emissions Factors by Electricity Provider (Greenhouse Gas Emissions Accounting forSpecified Organizations) – Results for Fiscal 2019; (Jan. 7, 2021; Ministry of Environment and Ministry of Economy, Trade and Industry).
Note: All shares of Q’SAI CO., LTD were divested on February 1, 2021, but Q’SAI CO., LTD and Q'SAI Group companies’ results are still included in the 2020 CO2 emissions.

25

2020 CO2 emissions and accounting methods
Emissions (t-CO2)
Scope

Scope 1

Direct greenhousegas emissions by thereporting company

Scope 2

Indirect emissions fromthe use of electricity,heat, or steam suppliedby others

CCBJI
Group

Q’SAI
Group

187,599

175,289

Accounting method

CCBJH
Group
(total)Activity data

Emissions factor

188,330

Amount of fuel used in
offices, sales centers,
plants, distribution, etc.

Emissions factor from the Greenhouse Gas
Emissions Accounting and Reporting Manual
Version 4.7 (Ministry of Environment and Ministryof Economy, Trade and Industry; January 2021)

177,470

Amount of electricity
used in offices, sales
centers, plants, etc.

Adjusted emissions factor of 0.470 kg-CO2/kWhfrom Emissions Factors by Electricity Provider(Greenhouse Gas Emissions Accounting forSpecified Organizations) – Results for Fiscal 2019;(Jan. 7, 2021; Ministry of Environment and Ministryof Economy, Trade and Industry)

731

2,181

Emissions (t-CO2)
Scope

Category

1

Purchased goods
and services

CCBJI
Group

965,724

204,425

Q’SAI
Group

7,460

394

Accounting method

CCBJH
Group
(total)Activity data

973,1 84

Procured raw materials(based on weight)

The Coca-Cola Company’s emissions factors

204,820

Fiscal year increase inamount of fixed assets(net price)

Emissions factor according to price of fixed
assets from the Ministry of the Environment’s
emissions factor database (Ver. 3.1) for use with
the Basic Guidelines on Accounting forGreenhouse Gas Emissions throughout theSupply Chain
Emissions factor for fuel procurement from the
Ministry of the Environment’s emissions factor
database (Ver. 3.1) for use with the Basic
Guidelines on Accounting for Greenhouse Gas
Emissions throughout the Supply Chain

Emissions factor

2

Fixed assets

3

Fuel- and energy
related activities
not included in
Scope 1 or Scope 2

65,27 1431

65,702

Amount of fuel,electricity, heat used

4

Transport anddelivery(upstream)

97,49 1

1,552

99,043

Amount of fuel used foroutsourced
transportation

Emissions factor from the Greenhouse Gas
Emissions Accounting and Reporting Manual
Version 4.7 (Ministry of Environment and Ministryof Economy, Trade and Industry; January 2021)

5

Waste generated inoperations

10,325134

1 0,459

Waste by weight or
disposal fee

Emissions factors for industrial waste based on
an industry input-output model from the Ministryof the Environment’s emissions factor database(Ver. 3.1) for use with the Basic Guidelines on
Accounting for Greenhouse Gas Emissions
throughout the Supply Chain

6

Business travel2, 1 66

154

2,32 1

Employee transportation
expenses paid

Emissions factors for transportation expenses
from the Ministry of the Environment’s emissions
factor database (Ver. 3.1) for use with the Basic
Guidelines on Accounting for Greenhouse Gas
Emissions throughout the Supply Chain

7

Employeecommuting

3,693

185

3,878

Employee commuter
expenses paid

Emissions factors for transportation expenses
from the Ministry of the Environment’s emissions
factor database (Ver. 3.1) for use with the Basic
Guidelines on Accounting for Greenhouse Gas
Emissions throughout the Supply Chain

8

Leased assets(upstream)

N/A

N/A

N/A

N/A

N/A

9

Transportationand delivery(downstream)

N/A

N/A

N/A

N/A

N/A

10

Processing ofsold products

N/A

N/A

N/A

N/A

N/A

11

Use of soldproducts

N/A

N/A

N/A

N/A

N/A

12

End-of-life
treatment of soldproducts

1 1 ,695

Reported amount by
weight of containers
and packaging recycled,according to the
Recycling of Containers
and Packaging Act

Emissions factors for waste by type andtreatment method from the Ministry of theEnvironment’s emissions factor database (Ver.
3.1) for use with the Basic Guidelines on
Accounting for Greenhouse Gas Emissions
throughout the Supply Chain

Amount of electricity
used by the company’ssales equipment(vending machines)

Emissions from electricity use is calculated bymultiplying the annual electricity use of one
vending machine by the number of vending
machines in operation in the applicable fiscal
year. The emissions factor for electricity is 0.470
kg-CO2/kWh.

Scope 3

13

Leased assets(downstream)

14
15

1 1 ,473

222

352, 1 5 1

0352, 1 5 1

Franchises

N/A

N/A

N/A

N/A

N/A

Investments

N/A

N/A

N/A

N/A

N/A

1 ,7 1 2,720

1 0,532

1 ,723,252

Scope 3 total amount26

Group Structure (As of February 1, 2021)
Coca-Cola Customer Marketing Co., Ltd.
Coca-Cola Bottlers Japan Vending Inc.

Coca-Cola Bottlers Japan
Holdings Inc.

FV Japan Co., Ltd.

Coca-Cola Bottlers
Japan Inc.

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

External Evaluations

CDP

Dow Jones Sustainability
Indices (DJSI)

Kurumin

Nikkei SDGs
Management Survey

Health & Productivity
Management
Organization White 500

work with Pride

ISO: International
Organization forStandardization

New Diversity
Management
Selection 100

Sports Yell Company

Food safety
management
systemFSSC 22000

Nikkei Smart WorkManagement Survey
four-star rating

MSCI Japan Empowering
Women Index

The Women’s Participation
Promotion Awards

Note: Awarded to CCBJH and some of its Group companies.

The full version of CSV Report
For the full version of CSV Report 2021
(PDF), please check our website.

http://en.ccbji.co.jp/csv/doc.php

L-boshi

SSON Impact Awards
Asia

Also received the Director’s Award for Excellence in Disability Hiring in 2019from the Bureau of Industrial and Labor Affairs Awarded to CCBJHCHECK!

Semi-Nadeshiko 2021

CSV Report 2021 survey

CHECK!

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

https://form.ccbji.co.jp/form/csv2021_en
This survey is to aid in the development of our future CSV initiatives andour next CSV Report. Please let us know your thoughts and opinions.

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/©2021 Coca-Cola Bottlers Japan Holdings Inc. All Rights Reserved.