C SV R E P O R T 2 0 2 0

Coca-Cola Bottlers Japan Holdings Inc.

Building off our mid-term strategic business plan, we have renewed
our Mission, Vision, and Values and our promise to“Deliver happy moments to everyone while creating value,”with a new call to “Paint it RED! Let’s Repaint our Future.”
Red—both our corporate color and symbolic ofpassion—represents our strong determination to create value.
Unconfined by how we may have done things in the past,
we aim to become a corporate group that can create new value for society.
Our journey might not be smooth,but we will face those challenges nonetheless.
Alongside our many partners, we will forge a new future.

01

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Value Creation
Story

TowardValue Creation

Foundation for
Value Creation

New Corporate Philosophy

Our Mission, Vision, and Values state our commitment to continue
being the preferred partner of our many stakeholders, especiallyour customers, shareholders and the communities in which
we operate. These statements represent the kind of organization
we wish to become and focus on growing sustainably,learning—both as individuals and as an organization—anddemonstrating the value of integrity and trust.

Deliver happy moments to everyone
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 growWe are the best place to work with pride for Coca-Cola

Learning
Agility
Result-orientation
Integrity

02

CONTENTS

SECTIONSECTION

01

02

VALUE CREATIONSTORYTOWARD VALUECREATION

We present the CCBJH Group’s value creation
story, which incorporates a renewed corporate
vision and direction, and is inspired by a callto “Paint it RED! Let’s Repaint our Future.”

We introduce our initiatives to create sharedvalue, which are organized under the Inclusion,Communities, and Resources platforms.

05 Top Message

17

07 CCBJH Group by the Numbers
09 Beverage Business Products
1 1

Value Creation Cycle

13

Coca-Cola System Material Issues

15

CCBJH Group Commitments

19
21

23
27
31

03

2020 HIGHLIGHTS

A Society Where All Can Shine
Platform

Inclusion

2020 HIGHLIGHTS

Energizing Communities
through Sports
Platform

Communities

2020 HIGHLIGHTSWorld Without Waste
Platform

Resources

CONTENTS

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03

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Value Creation
Story

TowardValue Creation

Foundation for
Value Creation

Editorial policy

The Coca-Cola Bottlers Japan Holdings Group(CCBJH Group) believes we can help build a moresustainable society through our beveragebusiness and our healthcare and skincare
business. In this report, our aim is to communicate
the CCBJH Group philosophy of Creating Shared
Value (CSV) and introduce some of our specific
CSV initiatives to our stakeholders.
Referenced guidelines
Global Reporting Initiative (GRI)
Sustainability Reporting Standards 2016
Period covered
This report covers activities from January 2019 to
the end of December 2019.
Numerical data is also for the period from January
2019 to the end of December 2019.

FOUNDATION FOR
VALUE CREATION
We introduce the initiatives that form thefoundation of the CCBJH Group’s value
creation and the management structure thatdrives its growth.

39

Customer Satisfaction

40 Quality Assurance
41

Ethics and Compliance42

Risk Management

43 Human Rights and Employee Job Satisfaction
45 Corporate Governance46 Board of Directors
47

CCBJH Group Profile

48 CCBJH Group’s Corporate Information
49 Plant Tours

Scope of the report
Information presented in this report was collectedfrom Coca-Cola Bottlers Japan Holdings Inc.,
Coca-Cola Bottlers Japan Inc., the Coca-Cola
Bottlers Japan Group companies*1, Q’SAI CO.,LTD., and the Q’SAI Group companies*2. (Pleasesee page 47 for the Group structure.)
Date of issue
June 2020
Terminology
The “CCBJH Group” (“we”) refers to Coca-Cola
Bottlers Japan Holdings Inc. and its eight Group
companies (Coca-Cola Bottlers Japan Inc., the
CCBJI Group’s other companies, and Q’SAI CO.,LTD.) as well as Q’SAI CO., LTD. Group companies,
while “CCBJI” refers solely to Coca-Cola Bottlers
Japan Inc. “CCBJI Group” refers to Coca-Cola
Bottlers Japan Inc. and its Group companies.
“Bottlers” refers to all bottling partners
throughout Japan, as designated by Coca-Cola(Japan) Company, Limited. The “Coca-Colasystem” comprises Coca-Cola (Japan) Company,
Limited, its bottling partners, and other affiliatedcompanies. “Customers” generally refers to both“consumers” (primarily product end-users) and“business partners” (primarily those who sell our
products).
*1	Coca-Cola Customer Marketing Co., Ltd., Coca-Cola
Bottlers Japan Vending Inc., FV Japan Co., Ltd., Kadiac
Co., Ltd., Coca-Cola Bottlers Japan Business Services
Inc., and Coca-Cola Bottlers Japan Benefit Inc.
*2	QSAI Analysis and Research Center Co., Ltd., QSAIFARM SHIMANE Co., Ltd., and CQ Ventures Co., Ltd.

50 Third-party Evaluation

04

Top Message

Business as usual will not resultin creating new value. It takes
a persistently adventurous spirit
to reach a better future.

Renewing our Mission,
Vision, and Values to guide
greater growth“Delivering happy moments to

we will not only increase corporate

everyone while creating value” byvalue, but also set in motion acontinually learning and growing, andsustainable cycle of creating sharedstrive to be the preferred partner ofvalue with society.

Creating shared value (CSV) is at theour many stakeholders, especiallycore of business management for theour customers and shareholders. The

Coca-Cola Bottlers Japan Holdings

new Mission, Vision, and Values

Group (CCBJH Group), and thecommunicate our strong

CCBJH Group actively promotes

determination and act as a guide toenvironmental, social, andachieving sustainable growth andIn 2015, the Sustainable Development

governance (ESG) initiatives tocontinuing to create value.

Goals (SDGs) were adopted by thecreate shared value with society.
If we look at the beverage industry
over the past few years, we can see
how the market has been impacted

United Nations as an international

Creating a positive cycle ofsustainable growthfor value creation

by various shifts, such as theframework to guide global actions
toward the realization of asustainable society. This led togreater scrutiny of our corporate

diversification of consumer needs

It is vital that we collaborate andinitiatives from various perspectives

and intensifying competition. In thisengage with all our stakeholders toand became the impetus for theenvironment, we have continued toachieve sustainable growth throughCoca-Cola system in Japan tointegrate and restructure ourvalue creation. We will move forward

identify material issues (materiality)business and have created newwith our environmental conservationfor our sustainability initiatives.

economic and social value.

and regional revitalization initiatives

Taking into account a number of SDG

in collaboration with the local

topics, we narrowed our focus to

how we have done things in the pastcommunities with whom we havethree broad platforms: Inclusion,

if we want to achieve greater growthcultivated a wealth of connections

Communities, and Resources. Withinin the future. Building off our mid-over many years. Furthermore, wethese categories, we established theterm business plan, we have put thatwill increase our involvement inmateriality of nine priority issues.

resolution into action by renewing

solving social issues related toWith that in place, the CCBJH Groupour Mission, Vision, and Values with apackaging, as part of realizing aplans to address each material issue,

new corporate philosophy that is

World Without Waste. We will also

while further developing businesssummed up by “Paint it RED! Let’s

strengthen initiatives concerning

activities grounded in our

Repaint our Future.” Red—both ourwater, which is crucial to ourcommunities. We are wholly

corporate color and symbolic ofbusiness, by addressing both the

dedicated to enacting positive

passion—represents our strong

responsible use of water and waterchange and creating social value that

determination to create value.

resource conservation. By investing

meets the expectations of ourin our local communities in this way,stakeholders.

We cannot continue to rely on

We will achieve our Mission of05

Addressing key social issues
as a member of
the Coca-Cola system

CONTENTS

Creating shared value withsociety is the right way togrow

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Value Creation
Story

TowardValue Creation

Foundation for
Value Creation

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

The year 2020 began tumultuouslywith the unprecedented threat of
COVID-19. The resulting situation
includes the postponement of theTokyo 2020 Olympic and Paralympic
Games, and not only have othersporting and entertainment events
been affected, but the global
economy and the very structure ofsociety have also been disrupted.
Whatever we face, we must keep
moving forward and continue
growing. While monitoring thesituation and responding
appropriately, we will fulfill our
mission to deliver beverages to ourconsumers. We are determined toaddress social issues through ourbusiness activities and fulfill our
responsibility to work together tocreate a better future. Building upon
our renewed Mission, Vision, andValues and the individual integrity of
our employees, we will continue tocreate new, shared value and further
earn the trust and support of our
stakeholders.

06

CCBJH Group by the Numbers

Beverage Business Overview
Business area

Tokyo, Kyoto, Osaka, and35

Consumersin sales area

112

prefectures

Responsible for close to 90% of the sales
volume of the Coca-Cola system in Japan

About
million(51 million households)

2019 Financial Highlights (consolidated; IFRS)Revenue¥(¥ billion)
1,000

914.8
927.3

Business income*2¥

billion914.8(¥ billion)
25

600

15

400

10

200

5

0

(¥ billion)
20

23.3

2019

billion

14.7
15.0

10

-55.4

0

2018

Net profit for the year attributableto owners of the parent

¥

-58

2019

¥
(¥)
60

2019

50

50
50

40

-580

20
0

2018

2018

Earnings per share (EPS)

billion

101

0

07

-55.4

0

2018

10

¥

billion

20800(¥ billion)
20

15

Operating profit

2019

2018

2019

*2	Business income is a measure of recurringbusiness performance calculated by deducting
the cost of goods and SG&A from revenue,
and accounting for other recurring income andexpenses.

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Value Creation

Plants*1

17

Annual sales
volumeVending
machinesMore than500
million
cases

About

700,000
Customer outlets

240,000

Sales and
distribution centers

About

350
*1 Includes Hiroshima Plant, which began production in June 2020

Segment information

Beverage business

Healthcare and skincare businessWe sell beverages at supermarkets, drug anddiscount stores, convenience stores, in vending
machines, and via retail and food service
establishments.

We sell healthcare and skincare products
primarily via online orders. This business is led
by wholly owned subsidiary Q’SAI Co., Ltd.

Revenue

Business income

2.7%

97.3%

Beverage business

890

¥

76.1%

Healthcare andskincare business24.8

billionBeverage business

11.4

¥

billionRevenue¥

23.9%

Business
incomebillionHealthcare andskincare business3.6¥

billion08

Beverage Business Products

The CCBJH Group delivers happy
moments through its wide line-up of
products by offering multiple categories,
flavors, and package sizes to support ourconsumers’ lifestyles and health needs.

Number of brands
More than

Number of products
More than

50 800Coca-Cola

134 thanniversary

09

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TowardValue Creation

Foundation for
Value Creation

Georgia

Since

1975

Japan’s first canned
coffee beverage

I LOHAS Natural
Mineral Water

Since

2020

100% recycled
PET bottle andlabel-free bottle

10Value Creation Cycle

Toward Realizing Our Missionof Achieving Sustainable Growth
The CCBJH Group aims to create both social and economic value andachieve sustainable growth by using water and other indispensable
natural resources responsibly to provide all its customers
high-quality value-added products, while working in collaboration
with The Coca-Cola Company and the members of
the Coca-Cola system in Japan.

CSV Model
Our input includes water and otherindispensable natural resources, adiverse and inclusive human resource
base, different work styles, advanced
technology, strong marketing andsales capability, and the strength of
The Coca-Cola Company brands

Returning
Value toNature &Society

Input

With CSV at the core of ourmanagement, we work to meetthe needs of our customers
through our enhanced value chain

Creating
Shared Value

We return value to stakeholders
by contributing through ourbusiness activities to positivechange in the environment,
daily life, and our communities

Output/Outcome11

BusinessModel

We deliver happy moments
to everyone while creating
value through our products
and services

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Foundation for
Value Creation

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

Manufactured
capitalHumancapitalSocialcapital	A raw materials procurement network thatfacilitates the production of safe and trustworthy
products
	Cutting-edge management systems, facilities,
and technology in our production plants
	A network of vending machines covering ourentire sales area

Financial
capital	Employment of diverse andinclusive human resources	Different work styles that allow
employees to maximize theirtalents	The trust of our stakeholders andtheir support for CSV initiatives
	Close involvement in activities
throughout our sales area	Good stewardship of capital	Solid balance sheet	Shareholder returns

Business ModelIn our beverage business, which
accounts for more than 95% of the
CCBJH Group’s revenue in 2019, we
aim to deliver to our customers thebeverages they want, when andwhere they want them. To makethis a reality, we aim to achieve
best-in-class innovation andoperations while collaborating with
The Coca-Cola Company andmembers of the Coca-Cola system
in Japan. Creating shared value isat the core of our business because
we believe opportunities for theGroup’s further growth come from
helping address social issues.

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

Output/Outcome
While rapidly responding to changes in society
and the market environment, the CCBJH Group
works to achieve its mission to “Deliver happy
moments to everyone while creating value”
through our products and services, and bycreating products that not only meet customer
needs now but will also fulfill unmet needs.

Returning Value to Nature &Society
We cannot achieve sustainable growth by simply reinvesting profits backinto our business. That is why the CCBJH Group is collaborating with
communities to strengthen initiatives to revitalize those communities
and to address the issues they face. We are also committed to givingback to nature, since natural resources are limited and we recognize
our responsibility to handle them with future generations in mind.
We believe improving the sustainability of our communities andthe environment (natural resources) through CSV initiatives is a driverof growth for the CCBJH Group.

12

Coca-Cola System Material Issues

In 2019, Coca-Cola (Japan) Co., Ltd. and Coca-Cola Bottlers Japan Inc. jointly conducted a large-scale study to identify
sustainability issues and set priorities based on materiality for the Coca-Cola system in Japan. The intent was to formulate astrategy reflecting issues unique to Japan in addition to global sustainability targets being pursued worldwide in order todevelop a common action plan for the combined Coca-Cola system in Japan. This process gave us insight into a set of issues weneed to address based on sustainability targets specific to Japan, while also moving toward the achievement of global targets.

Coca-Cola System Sustainability Activities—Purpose and Strategy

PurposeWe are committed to creating a shared future and a sustainable business that can make adifference when addressing important challenges facing Japan, including the environment,
people’s lives, and our communities
Leverage Our Leadership Position to Drive Attention and Action

Strategy

Lead with a powerful example of Inclusion in our own business
Leverage the power and reach of our system to partner with our Communities
Take a lead role—working with industry peers—on Resource usage

Three Platforms and Nine Priority Issues
The nine priority issues are further subdivided into five priority topics specified as urgent, and four focus topics that areimportant but considered less of a priority at this time.
In each domain, we will examine the Impact of our activities against the sustainable development goals (SDGs) and help toaddress social issues by also working toward the achievement of the relevant SDGs.

InclusionCommunities

Resources

Gender rive impact throughD
two national platforms(Inclusion and Resources)

Packaging/PET

Priority topics
Age/Generation
Disabilities
Focus topics
LGBTQ

Initiatives that are
sustainable andadditionally have local
relevance

Water
Greenhouse gas emissions
Renewable energy

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

13

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TowardValue Creation

Foundation for
Value Creation

Materiality Identification Process

1

Issue identification (1): Identified social issues in Japan based on third-party studies

2

Issue identification (2): Narrowed down the list from 189 to 33 issues

3

Issue identification (3): Plotted a materiality matrix of 33 issues and specified 15 priority issues

We selected 189 issues by identifying and categorizing social issues from SDG-related reports and guidelines,
outside consultant reports (including outside stakeholder interviews), ISO 26000, government agency
reports, and benchmark surveys by outside consultants.

We then narrowed down the list of issues from 189 to 33 based on common shared categories, such as
renewable energy and an aging society.

The importance of each of the 33 issues selected in step 2 was assessed on a scale of 5 and plotted on amatrix with vertical and horizontal axes representing the importance to Japanese society and the Coca-Colasystem, respectively. We then specified 15 issues of high social importance that were also highly relevant to
the Coca-Cola system in Japan..
Priority matrix - We isolated “high-priority” topics within this matrix
Packaging/plastic

Supporting local
communities

Work reforms
Rural depopulation

Elderly
welfare3

Economic
growth in Japan

Health conscious
products

Education

Mental health

GHG emissions

Eco-friendly
business

Poverty/regional disparity

Water

Naturaldisasters
GenderBiodiversity

Healthy life
expectancy

Packaging/plastic

RenewableenergyFood andbeverage waste

Water
Renewable energy
Natural disasters
Food and beverage waste
GHG emissions
Eco-friendly business

Human rights

Recycling/circular economy

Supply-chain
management

Health conscious products
Rural depopulation
Poverty/regional disparity
SocialMaterial topics in Japan(quantitative analysis x external stakeholder input)

Recycling/circular
economyTopicsEnvironmental

5

Education
Elderly welfare
Work reforms

0
0

3

5

Material topics for the Coca-Cola system in Japan (fact-based analysis)4

Supporting local
communities

Conducted interviews within the Coca-Cola system andadjusted priority issues
We then added 4 priority issues identified within the Coca-Cola systemthrough interviews and workshops with management and junioremployees of Coca-Cola Japan and Coca-Cola Bottlers Japan, which
increased the number of priority issues to 19.

5Specified 3 platforms and 9 priority issues
Through workshop-style discussions on the 19 priority issues with the
management of Coca-Cola Japan and Coca-Cola Bottlers Japan, agreement was reached on specificationof 3 platforms not expected to change over the next 10 years—Inclusion , Communities and Resources —and
9 priority issues (material issues) requiring immediate attention.

14

CCBJH Group Commitments

Non-financial Goals

CSV Goals
Our creating shared value (CSV) goals state our commitments and priorities in the environment, social, and governance (ESG)
spheres towards realizing a sustainable future based on changes in society. We use a plan-do-check-act (PDCA) cycle to ensure
we are achieving our CSV goals.

Products

Water

Climatechange1 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
50%

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

DesignWorld Without
Waste

Procurement

1 00%

Sustainable sourcing

Human rights

1 00%

Adherence to Supplier Guiding Principles across the
CCBJH Group value chain

Diversity andinclusion

6%

Female managers

1 0%

Employee volunteers

1 million

Participants in community programsSocietyBaseline year is 2015 and target year is 2025 unless otherwise stated.

Details on and progress of our CSV goals
Check!

15https://en.ccbji.co.jp/csv/csvgoal/

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Financial Goals

Mid-term Business Plan
In August 2019, we released our mid-term business plan for the 2020–2024 period, which sets business income margin*1 andreturn on equity (ROE) targets of 5-6% for the year 2024. With the understanding that business as usual is not an option, we aim
to achieve industry-leading innovation and operations through fundamental change.

Fundamental transformation driving the return to a growth trajectory

2024 Business income target¥49 billion

Business income
margin 5–6%

2023–2024
Further growth to become
best in class in Japan

2019 Business income¥15 billion

2020–2022
Reset and transform

Business income
margin 1.6%

2017–2019
Integration

	Transform cost structure andorganizational culture	Customer-focused investment for
growth	Integration and standardization oforganization, systems, and processes	Creation of synergies from integration	Accelerate growth through appropriate
additional investment
	Become an industry leader in innovationand operations

Expand revenue base

Growth from commercial
department transformation

Cost efficiency andupfront investment* 1	Business income is a measure of recurring business performance calculated by deducting the cost of goods and SG&A from revenue, and accounting for other recurringincome and expenses.

2024 key metrics and picture of success
Main indicator

2024 goals (2019 baseline)

Revenue

Revenue: +0.5-1% annually Sales volume: +1-1.5% annually

Business income margin

5-6%

Earnings per share (EPS)

Basic EPS*2: 3 times or more

ROE (net profit for the year attributable to owners of the parent)

5-6%

Return to shareholders

Mid-term focus: stable payouts
Long-term focus: 30% or greater payout ratio*2 Basic EPS is EPS that excludes temporary impacts not included in business income

Earnings presentations
Check!

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

16

2020 HIGHLIGHTS

A Society Where All Can Shine

Our Athletes Lead the Way
The CCBJI Group has a number of employees who balance work and sporting commitments to compete at the highest
levels of their sports. We have asked four of our athletes to share their thoughts on work and sports.

Rugby sevens

Shotaro Tsuoka

Competing

CCBJI HR Division, assigned to CCBJV(East Fukuoka)

Mastering the basics

Sporting career highlights:
2019 30th Summer Universiade in Napoli, gold medal
2019 Competed in the Oceania Rugby Sevens
Championship
Competed at thefollowing rounds of
HSBC World Rugby
Sevens Series
2019–2020:

Dubai Sevens (Round 1)
South Africa Sevens (Round 2)
Australia Sevens (Round 4)

Working

Canada Sevens (Round 6)

Rugby has taught me the importance of mastering thebasics through repeated practice. I am proving my strengths
as a leading rugby sevens player in Japan in order to makethe most of the once-in-a-lifetime opportunity of competingat the Tokyo 2020 Olympic Games.
When I am working, I focus just as
much on mastering the basics as I do
when playing rugby. For example, by
focusing on being aware of mysurroundings, I can drive more safely. In
my daily work with vending machines, I
take special care with productmanagement to ensure that I will notcause any inconvenience in the processof delivering happy moments to ourcustomers.

Field hockey

Yu Asai

CompetingCentral Hiroshima Sales Center,
Chugoku Retail Sales Department

Setting goals andstriving to achieve them
My goal is to win a gold medal at the Tokyo 2020 Olympic
Games, and I also want to grow as aperson as I balance my work and mypreparations for the Olympics.
In my job as a merchandiser, I focus
on maintaining ample communication
with retailers in order to build
relationships based on trust. In addition,some of the skills I use for work aresimilar to the ones I use in hockey
practice, such as clarifying what needs
Working
to be done, setting daily goals, andworking to achieve them.

17

Sporting career highlights:
20 1 8International Hockey Federation (FIH) Hockey
World Cup (United Kingdom), 13th place

20 1 8 FIH Hockey Champions Trophy (China), 6th place
20 1 9 FIH Series Final, 2nd place
20 1 9

Tokyo 2020 Olympic Games hockey test event,
2nd place

CONTENTS

Competing

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Story

TowardValue Creation

Foundation for
Value Creation

Para-equestrian

Mina Chinju
CCBJB
Business Support Department

Communication is always key

Sporting career highlights:
2004 Competed in the Athens 2004 Paralympics
20 1 4Competed in the 2014 FEI World Equestrian
Games in Normandy, France

20 1 9Grade 1 champion at the CPEDI3 Gotemba
2019 Spring/JRAD Equestrian Event Part 1

The key to success as an equestrian athlete is how well you cancommunicate with your horse. When riding, I am constantly
thinking about how I can best get my horse to move with easethrough a process of trial and error. Japan has four equestrian
spots available for the Tokyo 2020 Paralympic Games. Above all,I want to secure my place on the team, and then be a rider who
can help my teammates by passing on myexperience from Athens.
Leading up to the Tokyo 2020 Paralympic
Games, I decided on a change inenvironment, switching jobs a year and ahalf ago. I am always thankful for mysupportive, warm, and understanding
colleagues and a work environment thatenables me to balance my work andWorking
sporting commitments.

Goalball

Maki Tsujimura

Competing

CCBJB
Business Support Department

Being aware andcareful in every situation
In the workplace, each person has their own roles andresponsibilities, and we achieve results throughcooperation. The same is true in goalball. Particularly, I
focus on greetings, communication, and being thoughtful
and considerate of others.
Upon joining the CCBJH Group, themajor change from my student years was
my desire to give back to my colleagues
through my sporting achievements. I havecome to believe that my mission is toshow my appreciation to those whoalways support me by achieving goodresults in goalball. I will continue trying toachieve those good results whilebalancing my work and sporting
commitments.

Sporting career highlights:
20 1 3 IBSA World Youth Championships, gold medal
20 1 9Hangzhou International Goalball Tournament,
silver medal

20 1 9Japan Goalball Para Championships,
champion and MVP

Working

18

Platform

Inclusion

Diversity and inclusion initiatives
We respect the individuality of each of the CCBJHGroup’s employees, value continuous innovation by
actively listening to diverse values and ideas, and actively
work to promote diversity and inclusion. The Group isseeking to implement a more diverse management, andsince last year, we have put in place a management
structure that includes more international and female
directors, allowing issues to be examined from more
perspectives before decisions are made.
We will continue to provide opportunities for all
employees so they can leverage their full potential,
regardless of individual attributes and unaffected byfactors that could restrict their ability to work.
“Dear Café” roundtable discussions with female directors
These roundtables offer a space in which female
directors can explain the expectations for female
managers in a meaningful way, and provide specific

What we are doing	Setting an inspiring example of an
inclusive work place culture	Nurturing the talents of our diverse
workforce – and engaging with theneeds of our communities

advice on any problems that participants may encounteron a regular basis.
Six-month “To Be” women leaders training courses
We are holding six-month leader training courses whileworking to enhance the career pipeline for women.

A “Dear Café” roundtablediscussion with a female director“To Be” female leader training course
participants

Percentage of new female employees (new graduates)(CCBJI non-consolidated)
70 (%)
60
50

52

53

55

2018

2019

2020

By increasing thepercentage offemale employees
when hiring, we areaiming for a total
female employee
ratio of 15% by 2025
(target percentageof womenmanagers 6%).

40
30
20
10
0

Main resource initiatives
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CONTENTS

Medium- to Long-term Vision
for Diversity and Inclusion
By respecting the diversity of ourworkforce, we will provide
opportunities to enable all employees
to leverage their full potential,
regardless of gender, age, disability,
nationality, sexual orientation and otherattributes, and unaffected by factorsthat could restrict their ability to work.

Strong steps to expand opportunities forpeople with disabilities: opening ceremony
for a special provision subsidiary
Having established a policy on diversity and inclusion,

SECTION 01

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Value Creation
Story

TowardValue Creation

Foundation for
Value Creation

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

Gender

Age

Factors restricting
ability to work

Nationality
Time

Sexualorientation

HealthLanguage

Disability

With its certification as a special provision subsidiary,
CCBJB is even more committed to expanding
opportunities for people with disabilities and to thecreation of proactive employment for them.

the CCBJH Group is providing opportunities for all

Corporate revitalization and communication:

employees to leverage their full potential by respecting

Friends & Family Fest 2019

the diversity of each and every member of its workforce
regardless of his or her attributes, such as gender, age,

To express gratitude to the families and other importantdisability, nationality, and sexual orientation. We arepeople in the lives of our employees, and to deepen theirworking to promote diversity with the aim of allowing all

understanding of CCBJI and help them gain a real sense

employees to be accepting of various opinions andof its appeal, we held Friends & Family Fest 2019

values, while continuing to spur on innovation.

primarily at our Akasaka office on August 20, 2019.

One of the CCBJI Group companies, Coca-Cola

During the event, 107 family groups (328 people total)

Bottlers Japan Benefit (CCBJB) Inc., received certification

spent time experiencing the “Coca-Cola Bottlers Japanas a special provision subsidiary, a company that secures

Family.” We organized a fun program of events, including

employment opportunities for people with disabilities. A

English language activities for kids, special drink-making

ceremony to mark the opening of the new business wasand button badge-making, sports experiences led byheld on November 20, 2019.

Coca-Cola Red Sparks rugby players and athlete

Established to promote and provide stable employment
for people with disabilities, the term special provisionemployees, and tours of office spaces that thoseattending would not normally visit.

subsidiary refers to a company that has in place a supportive

Going forward, we will continue to make CCBJI aenvironment for people with disabilities and aims to enable

company in which every employee will take pride, andthem to work regardless of the level of disability.

where anyone would want to work.

Special provision subsidiary opening ceremony

Friends & Family Fest hands-on button badge-making

20

2020 HIGHLIGHTS

Energizing Communities through Sports

Bringing Energy to Our Communities
The CCBJH Group manages two corporate sports teams, 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 numberof local fans but also proactively participate in local events as part of building vibrant communities and a society
in which everyone can live healthy and active lives.

The Coca-Cola Red Sparks team is a member of the Japan
Rugby Top Challenge League, and based in the city of
Fukuoka. At the 2019 Rugby World Cup tournament, heldin the fall of 2019, team member William Tupou (right)
played an active part representing Japan and contributed
to the national team reaching the Best Eight quarterfinals.
Team referee Akihisa Aso (below) also gave his support tothe tournament as an assistant referee, and was a part ofan exciting experience for not only our communities but
also all of Japan.

21

CONTENTS

SECTION 01

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Value Creation
Story

TowardValue Creation

Foundation for
Value Creation

Alongside all our communities

Coca-Cola Red Sparks rugby teamThe rugby team engages in a variety of activities to deliver
happy moments to everyone in our communities. On November
23, 2019, the Coca-Cola Red Sparks Rugby Fest 2019 was held at
Sawayaka Sports Plaza (Fukuoka City). Recording an all-timehigh attendance figure at the field, the team was able to interact
with many of its fans. In January 2020, we sold Red Sparks
surprise grab bags at game venues and donated the entire
proceeds to the city of Takeo in Saga Prefecture to contribute to
the disaster relief fund that had been set up following thetorrential rainfall in August 2019.

Principal
community
activities in2019 eld rugby clinics 12 times
H
Total of approximately 1,930 participants
Held rugby classes 23 times
Approximately 2,500 participants
Participated in Fukuoka City Love Earth
Cleanup 2019
Held 90 other events (talk shows and handson experiences, etc.)

Coca-Cola Red Sparks field hockey team

Field hockey classes are held in various places in cooperation
with communities to foster the development of youth andpromote sports. Held in collaboration with the NPO Tops
Hiroshima, the “Do Sports Field Hockey Class” held at elementary
schools in Hiroshima Prefecture has received very positive
response. Members of the team also act as lecturers for Human
Rights and Field Hockey Classes, which are sponsored by theHiroshima Legal Affairs Bureau and the Hiroshima Prefecture
Network Association of Human Rights Awareness-raising
Activities. These classes support human rights awareness forchildren by conveying the spirit of fair play through practical
instruction and stories of first-hand experience.

Principal
community
activities in2019 eld hockey clinics/classes 16 times
H
Total of 938 participantsParticipated in Hiroshima Flower Festival
Participated in Hiroshima Zero Litter & Clean
Walk Campaign
Participated in 39th Hiroshima International
Peace Marathon

22

Platform

Communities

Water resource conservation activities
We hold environmental education programs in various
locations to raise awareness of the importance ofconserving water and preserving nature. We are also
actively working to revitalize water resources to enhancetheir ability to replenish themselves—through activities
tailored to each area such as tree planting, thinning forest
undergrowth, flooding rice fields, and regenerating
grasslands—in order to return to nature a volume of waterequivalent to what we use in manufacturing our beverages.
In 2019, we conducted water resource conservation
activities in 12 of our plants’ water source areas—with a
total of 421 participants from among the community,
employees, and their families. One such event, a CocaCola “Learn from the Forest” project in Ebino, was held in
April 2019, and attended by 81 volunteers. These
volunteers help cut back bamboo thickets, plantmushrooms, and tried woodworking, all while learning
about the indispensable nature of water resources.

What we are doing	Continuing our legacy of partneringwith communities where we live andwork to support needs and ambitions
	Harnessing the potential ofcommunities and driving action
on our core platforms
Coca-Cola “Learning from the Forest” project in Ebino, Miyazaki Prefecture

Initiatives for youth helping tosolve social issues
We are working to solve regional social issues
collaboratively with local governments, academic, andcivic organizations. We have undertaken numerous
initiatives so far, including youth-led workshops,
presentations, and awards recognizing and highlighting
initiatives that tackle issues in the prefectures of Miyagi,
Fukushima, Tochigi, and Mie.
In 2019, CCBJI held the Sendai Youth Award
ceremony, in partnership with Sendai City and a local
NPO, Wakatsuku, to energize and further encourage
youth initiatives tackling regional issues. We want toMain resource initiatives
Check!

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CONTENTS

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Story

TowardValue Creation

Foundation for
Value Creation

continue to be the chosen partner of everyone in ourhealth and safety initiatives, and environmental initiatives

communities and will promote community-building

so that consumers can feel confident in choosing The

initiatives to help make them even better places to live.

Coca-Cola Company’s products.

Summer school plant tour

Sendai Youth Award ceremony in Miyagi Prefecture

Hydration and Drink Education seminars
We hold hydration seminars to raise awareness and help
prevent heatstroke, which has been on the increase inrecent years. In 2019, we held hydration seminars around
Japan for about 6,100 participants, including frombusiness partners and schools.
We have also been holding Drink Education seminars
since 2018 to help participants choose the products mostsuited to their lifestyles and physical conditions. These“Mie Mirai” workshop with community members

seminars cover useful daily information, including about
different beverage categories and how to read package

Plant tours

labels. Participants commented that they had gained a

Plant tours are a method of direct communication withfrequently, that they learned how to select beverages

stakeholders, especially consumers and businesssuited to their circumstances, and that they had fun

partners. We offer tours of the Zao Plant (Miyagi

learning in the workshop. We will continue holding

Prefecture), Tama Plant (Tokyo), Tokai Plant (Aichi

informative seminars in order to help people makePrefecture), Kyoto Plant (Kyoto Prefecture), and Ebino

healthy lifestyle choices.

greater awareness of hydration and the need to hydrate

Plant (Miyazaki Prefecture). Around 170,000 visitors
toured these plants in 2019.
Visitors can step into our tour area full of classic
Coca-Cola memorabilia and see the bottling plant’s
actual production facilities, while we explain in an easyto-understand manner about our rigorous quality
management standards and our environmental andcommunity initiatives.

Number of
hydration
seminars

Number of
hydration seminar
participants

38

6,100

(2018: 44)(2018: 7,000)

Number of
Drink Education
seminars

Number of
Drink Education
seminar participants

20

1,900

(2018: 24)(2018: 1,600)

We also hold special events such as summer school—
family-oriented learning experiences—at our plants
during summer break, as well as tours specifically forbusiness partners. At our Kyoto plant in 2019, we
collaborated with students from the Kyoto University ofForeign Studies to showcase environmental initiatives
around the world through fun cultural experiences while
becoming familiar with English.
We are using our plant tours to communicate The
Coca-Cola Company’s production processes, rigorous24

Platform: Communities

Donating products through food banksorganizations within our distribution area to provide
emergency supplies during a disaster. These agreements

Food banks are organizations where stocks of food,are to ensure that people impacted by an emergency cantypically basic provisions and non-perishable items, arerapidly access drinking water so we will prioritize watersupplied free of charge to people in need. The Food Loss

supply to emergency shelters and provide residents with

Reduction Promotion Act was enacted last year in Japan,

beverages free of charge from vending machines. As ofand the activities of food banks are attracting more

the end of 2019, we had agreements with 586 local

attention. Donating products via food banks not only

governments and organizations.

supports those in need but helps reduce wasted
resources and food.

In 2019, we responded to requests from thegovernment to provide beverages to residents of Chiba

Since 2016, we have partnered with and provided

and Fukushima prefectures affected by typhoons Faxai

products to food banks such as Second Harvest Japanand Hagibis. These efforts were commended in a letter of(member of the Alliance of Japan Foodbanks) and theappreciation from the Ministry of Agriculture, Forestry

Food Bank All Japan Association. In 2019, we provided

and Fisheries.

beverages to 22 food banks around Japan that havemade the most of these products and distributed them
to facilities that provide meals for children with busy orabsent parents and social welfare facilities. We willcontinue such initiatives in collaboration with various
stakeholders to fulfill our responsibility as a beveragecompany.

Emergency agreements and supporting
communities impacted by disasters
We are helping prepare for large-scale disasters byentering agreements with local governments and(Right) Akihiro Higashino, Food Manufacturing Division, Food Industry
Affairs Bureau, Ministry of Agriculture, Forest and Fisheries(Left) Raymond Shelton, Head of IR & Corporate Communications,
Coca-Cola Bottlers Japan, Inc.

CCBJI New Hiroshima Plant:

COLUMN

Recovering from torrential
rains in western Japan

Torrential rains struck western Japan in July 2018, and 2.5 meters offloodwater inundated the three production lines at the Hongo Plant(Mihara, Hiroshima Prefecture), halting operations due to serious
damage to the production lines and automated warehouse.

Hongo Plant after the flooding

Through rapid restoration work, we were able to promptly
restore logistical function to the area impacted, and we made thequick decision to shift our production facilities to a new location 4kilometers from the existing site. The new Hiroshima Plant will have
two aseptic lines, for which there is growing demand, and it started
initial production in order to supply product mainly to the Chugoku
and Shikoku areas in June 2020. More importantly, the investment inthis world-class facility demonstrates our commitment to investingfor the future, together with this important region of Japan.

25

New Hiroshima Plant

CONTENTS

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Value Creation
Story

TowardValue Creation

Foundation for
Value Creation

Our response to COVID-19
During this outbreak of COVID-19, the safety and health of our employees, our customers and our communities is our number
one priority. Our mission is to deliver happy, refreshing moments to everyone, even in challenging times, and we have beenworking with comprehensive business continuity actions in place to ensure safe and secure product supply as essential goods
and services. We are supporting various local communities through our products, and we continue these actions.

Hygiene guidance in line with Japan government advice reinforced across the organization
	Clear advice and information sharing to support employees experiencing potential
symptoms or concerned about exposure to the virus
Proactive large-scale work-from-home routines for all roles that can be done remotely
Restrictions on international travel
Support for employees who need child-care assistance during school closures
Cancellation of large-scale face-to-face meetings
Suspension of production plant tours and tight restrictions on visitors to our sites
Strengthened business continuity planning and scenario analysis for every CCBJH location

Donation of beverages to designated medical institutions for infectious diseases andothers through Japan Medical Association
To back up the medical personnel who are engaged in the response to the
COVID-19 outbreak, Japan Coca-Cola System, which includes Coca-Cola Bottlers
Japan has started the “Refresh Japan” program to donate about 1.3 million bottles
of beverages to medical institutions and frontline medical professionals. Deliveries
from each CCBJI sales center to the designated medical institutions for infectious
diseases have started from mid-May through the Japan Medical Association.

COLUMNQ’SAI’s healthcare andskincare business

Our healthcare and skincare business is centered on ourwholly-owned subsidiary, Q’SAI CO., LTD. To propel future
growth—and to change its image from that of a kale juicecompany to one that enables and supports the flexible
lifestyles of its customers—Q’SAI introduced a new logo
and corporate slogan in October 2019. In conjunction
with this, Q’SAI launched a new skincare brand,
Skinkalede, renewed the packaging and names of its
mainstay products, and changed the design of its
corporate and retail websites to enable it deliver moreconsumer value. No matter how our operating
environment changes, we will continue creating newvalue, so our customers feel great in both body and mind.

26

2020 HIGHLIGHTSWorld Without Waste

Toward Achievinga World Without Waste
In 2018, The Coca-Cola Company, out of desire to reduce its impact on the environment, announced a global goal of
realizing a World Without Waste. In response, the Coca-Cola system in Japan launched its 2030 Packaging Vision soonafter, with a plan based on forty years of experience gained through efforts to reduce resource use by making lighter
bottles and initiatives such as bottle recovery and recycling. In July 2019, the Coca-Cola system in Japan renewed its
2030 vision by setting its own ambitious environmental targets that exceed those of the global initiative, including
shortening the timeline to achieve certain targets at an earlier date.

Three core elements of the 2030 Packaging Vision
The 2030 Packaging Vision is made up of three coreelements—design, collect, and partner. It is founded on theunderstanding that a World Without Waste can only beachieved by taking a holistic approach to a product’s life
cycle and by partnering with local communities.

We are promoting bottle-to-bottle
recycling by improving the design
and material of our bottles to makethem more sustainable

DesignCollect

We plan to collect and recycle thevolume of packaging equivalent to thatof products sold

27

Partner

We are building and maintaining stronger collection
and recycling schemes through partnerships with thenational and local government, the beverage industry,and our communities

CONTENTS

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TowardValue Creation

Foundation for
Value Creation

Roadmap to 2030
We have set the following concrete targets for our core

Under our Collect initiative, our aim by 2030 is to be

initiatives of design, collect, and partner. For our Designable to recover a volume of PET bottles equivalent to that

initiative, our first target is to use at least 50% recycled PETof the products we sell in Japan. We will actively raise

plastic in our bottles by 2022 (results for 2019 were aboutawareness of correct recycling, such as the fact that21%) under our bottle-to-bottle initiative that gives new life

removing the label and cap from a bottle changes it fromto used PET bottles. We will increase our bottle-to-bottle

waste to resource. We are also committed to keeping ourrecycling rate to 90% by 2030. Second, we will shift to using

communities looking beautiful through cleanup campaigns.

only recyclable material for all PET bottles, glass bottles,

For our Partner initiative, we are collaborating with theand cans for products sold in Japan by 2025. Third, we will

national and local government, the beverage industry, andswitch to using only 100% sustainable materials in our PET

our communities to further increase our already very highbottles and eliminate the use of additional fossil fuels byrecovery and recycling rates for PET bottles and aluminum

2030. Fourth, we will reduce the amount of PET plastic

cans in Japan, and to build and maintain more robust

used in each bottle by 35% by 2030 (compared to 2004).

recovery and recycling schemes.

28

2020 HIGHLIGHTSWorld Without Waste

Recent CCBJH Group initiatives

DesignBottle-to-bottle recycling resultsin 100% recycled plastic bottle

The Coca-Cola system is promoting the bottle-tobottle initiative to give new life to used PET
bottles through recovery and recycling. In March
2020, we launched a new bottle made from 100%
recycled plastic for I LOHAS Natural Mineral Water.
We were able to increase the proportion ofrecycled PET plastic in the bottle from 30% to100% as a result of technological innovation that
increased the transparency of recycled bottles andcollaboration with a partner company. The
development of this next-generation PET bottle isa major step toward ensuring the reuse of
packaging.

Label-free
I LOHAS Natural
Mineral Water
We launched a labelfree bottle for
I LOHAS Natural
Mineral Water in Japanthat went on sale
online starting in April
2020.

Environmental impact of the 100% recycled plastic I LOHAS Natural Mineral Water bottle

Bottle-to-bottle recycling gives
new life to once wasted
PET bottles

Reduces annual use offossil fuel-derived plastic byan amount equivalent in weight
to about 4,000 cars*1

We maximize the use of resources
by recycling used PET bottles tomake new bottles

Significantly reduces our use ofplastics made from fossil fuels*2 andreduces our environmental impact

Carbon dioxide emission due to making
a bottle is reduced by 49% (compared
to a regular bottle*3), helping decrease
our environmental impact

CO2 emissions per bottle

Collectionof usedPET bottles

Formed into
new bottles

Reduces CO2 emissions
by 49% per bottle

grams CO2 /bottle

60.1

From bottle
to bottle

49%
reduction
in CO230.9

Becomes
raw material
for PET bottles

Shred into
about 8 mm2
flakesReduces use of plastic
by an amount equivalent toabout 4,000 vehicles annually

Regular 100%
petroleum-based
bottle(18 g bottle)*1 Calculated using a compact vehicle (approximately 1 ton) *2 Compared to the former 555 ml I LOHAS Natural Mineral Water bottles*3 PET bottle made from 100% petroleum-based plastic

29

100% recycled
I LOHAS Natural
Mineral Water
bottleCONTENTS

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Value Creation
Story

TowardValue Creation

Foundation for
Value Creation

Cooperating with communities
in cleanup campaigns

Collect

Many of our employees actively participate in cleanup campaigns
around our offices and bottling plants as part of our efforts to further
improve packaging collection and recycling rates. On November 18,
2019, we held simultaneous cleanups around Japan at nine locations
including Tsurigasaki Beach in Chiba and Shibuya, Tokyo. In total,
about 750 employees—including members of Coca-Cola Japan and
CCBJI’s senior management—participated in the cleanup alongsidecommunity members.

Partner

Beverage industry
initiatives

Partner

Joint research with the
Nippon Foundation on
how trash ends up in rivers

We have endorsed the Japan Soft Drink Association’s

It is estimated that in Japan approximately 98%* or

declaration on the recycling of plastic in the beverage

more of all PET bottles are collected, but 2% are notindustry, which was announced in November 2018 with thebeing recovered and have a chance of ending up ingoal of achieving the 100% effective utilization of PET bottles

rivers or the ocean. To find out the reasons for this 2%

by fiscal 2030, and we are cooperating in initiatives with ourloss in recovery, the Coca-Cola system in Japan began a

industry peers. Since May 2019, as part of an initiative to

joint research project with the Nippon Foundation. The

encourage recycling and prevent littering, we havefindings of this research have not only helped inform

distributed more than 200,000 stickers with an industry-

Japan’s beverage industry, but are proving useful inwide design that reminds people to not put

policymaking and initiatives for more effective

anything in recycling bins other than empty

collection and for preventing bottles from ending up in

bottles. These stickers have been placed onrivers, the ocean, and elsewhere.

recycling bins next to vending machines,
mostly in Japan’s busiest downtown areas*Source: Coca-Cola Japan research based on findings of waste surveys by
local governments in Japanin the Tokyo metropolitan area, and Tokaiand Kinki regions.

Online learning to raise employee awarenessWe know the efforts of our employees are crucial to achieving our 2030
Packaging Vision. We are conducting e-learning courses for CCBJH Group
employees to aid their understanding of social issues associated withpackaging, such as marine plastic pollution and resource recovery. As acompany that deals directly with PET bottles, we recognize the importanceof each of our employees having a high awareness of environmental issues.

30Platform

Resources

Working to mitigate climate change
We believe that sustainable growth requires balancing
the reduction of environmental impact with businessgrowth. We aim to contribute to the mitigation of climatechange by reducing greenhouse gas emissions across ourentire business, including in the procurement of materials,
production, logistics/transportation, and sales.

Disclosure of greenhouse gas emissions
We recognize the mitigation of climate change as a
crucial issue to consider throughout the course of ourbusiness activities. As such, we transparently disclose
corporate greenhouse gas emissions, of which CO2 is a
primary example, and share information with our many
stakeholders about the overall state of greenhouse gas
emissions, the progress of countermeasures, and othertopics so that this can lead to further emissions

What we are doing	Driving continuous improvementin the sustainable use of resources	Supporting the environmental
conservation of our country

reductions.

Production initiatives
At our plants, we are actively adopting new processes
and the latest technology for improving energy efficiency.
In 2019, one element of this was to introduce the newest,
high-productivity, energy-efficient PET bottle productionlines in our Kyoto and Kumamoto plants. We will continue
striving to reduce our energy use by installing the latest,
most efficient production lines andfacilities in our plants.
2019 EUR(Energy Use Ratio)

per liter of product0.87MJ/L(+0.02MJ/L
year on year)

Main resource initiatives
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Logistics and transportation initiatives

Recycling waste materials

Our logistics divisions are furthering the efficiency of

At CCBJI’s plants, we sort and recycle waste materials

transportation—such as between plants, warehouses, andgenerated by production to continuously achieve zerosales centers—through ongoing modal shift initiatives,

waste emissions (a waste material recycling rate of overuse of larger vehicles, and improving cargo load ratios. In

99% at all 17 plants). Coffee grounds and tea leaves

addition, we are reducing greenhouse gas emissions

constitute the bulk of our generated waste materials, andthroughout the Group by improving the efficiency of

we reuse 100% of those materials as fertilizer, animal

delivery routes to our business partners, rethinking ourfeed, or fuel.

sales structure to reduce vehicles, and reducing fuel use
by switching to smaller vehicles.

The used tea leaves that result from the production of
Sokenbicha at the Zao Plant are combined withbyproducts, such as leftover whey from the
manufacturing of cheese at the Zao Dairy Center, andSales initiatives

used as “eco-feed”* for Zao Sosei beef cattle. Working
with the local government and members of academia,

To reduce the energy consumption and CO2 emissions of

the Tokai Plant is also pursuing research into a way toour vending machines, (including coolers, and drink

efficiently reuse coffee grounds

dispensers), we continuously work toward theand tea leaves.

development and introduction of new equipment. Our“peak shift” vending machines, which we have been
deploying since 2013, shift electricity consumption used
for cooling to nighttime, which can reduce power
consumption during peak daytime hours by a maximum*Food scraps that become feedstuff foranimals. The Japanese Ministry ofAgriculture, Forestry and Fisheries is
actively promoting eco-feed toincrease the self-sufficiency rate forfeedstuff.

of 95%. The energy-saving specifications of these

Recycling rate ofwaste from plants

Approx.

99.68%(+0.72% year on year)

machines allow them to provide cold products 24 hours aday, even if the power for cooling is completely stopped
for as long as 16 hours. We are also progressing with ourplan to eliminate the use of chlorofluorocarbon (CFC)
refrigerants in our vending machines.

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

CFC-free vending
machine ratio

Approx.

77%

Electricity
demand*1(–1% year on year)
Peak shift
vending
machineelectricity
use

Number of CFC-freevending machines,
including peak shift
vending machines

Approx.

541,000

0:00

CoolingON

Cooling
OFF*3

7:00 8:00

22:00 23:00* 1	Power company power consumption rates on days with the highest demandin summer 2012. Source: Compiled from published data of power companies.
*2	This refers to “time periods for eliminating fluctuations in electricity
demand” designated in the revised Act on the Rational Use of Energy, which
went into effect in April 2014.
*3	Standby power consumption required for the sale of products occurs even if
the cooling system is shut off during the day. Depending on location, peakshift vending machines may be set so that the cooling system is shut off atnight and cooling takes place during the day. The cooling system may also
operate during the day after products are restocked.

32

Platform: Resources

CCBJH Group’s CO2 Emissions Results andAccounting Methods
We consider the mitigation of climate change a crucial issue to address throughout the course of our business activities.
As such, we transparently disclose corporate greenhouse gas emissions, of which CO2 is a primary example, and share
information with our many stakeholders about the overall state of greenhouse gas emissions, potential countermeasures,and other topics in the hope that this will lead to further emissions reduction.
CCBJH Group’s scope 1, 2, 3 emissions by source
Fuel- andenergyrelated
activities notincluded in
Scope 1 or
Scope 2

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

Transport anddelivery(upstream)

Category

Business travel

7

Franchises

Scope 2Category

Category

3

14

Category

Category

6

4

Direct greenhousegas emissions
by the reporting company
Category

Category

Purchased
goods andservices

Transport anddelivery(upstream)

1

Category

Category

Category

Category

Transportationand delivery(downstream)

Processing ofsold products

Use of soldproducts

End-of-life
treatment ofsold products

94

Scope 1

10

11

12

Category

2

Fixed assets

Category

Category

8

Leased assets(upstream)

15

Category

CategoryWastegenerated inoperations

Leased assets(downstream)

5

13

Source: “Supply-chain emissions in Japan,” Ministry of the Environment, 2015
www.env.go.jp/earth/ondanka/supply_chain/gvc/en/files/supply_chain_en.pdf

33

Investments

Scope 3

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TowardValue Creation

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2019 CO2 emissions and accounting methods: Covered by third-party assurance

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

Scope

Category

CCBJI
Group

Q’SAI
Group

1 90,495

1 55,008

1,057

2,01 1

Accounting method

CCBJH Group(total)Activity data

19 1,551

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

The Coca-Cola system in Japan uses emissions
factors calculated based on the Greenhouse Gas
Emissions Accounting and Reporting Manual
Version 1.2 (Ministry of Environment and Ministryof Economy, Trade and Industry; February 2007)

157,019

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

Electricity’s emissions factor is 0.421 kg-CO2/
kWh, which is the emissions factor of the averageof all electricity sources in fiscal year 2004, as
published by the Federation of Electric Power
Companies (2005)

Emissions (t-CO2)

1

Purchased goods
and services

2

Fixed assets

3

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

4

Transport anddelivery (upstream)

5

Waste generated inoperations

Emissions factor

Accounting method

CCBJI
Group

Q’SAI
Group

CCBJH Group(total)

1 ,058,706

10,145

1 ,068,852

Procured raw materials(based on weight)

The Coca-Cola Company’s emissions factors

31,022

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. 2.4) for use with
the Basic Guidelines on Accounting forGreenhouse Gas Emissions throughout theSupply Chain

46,055

Amount of fuel, electricity,heat used

Emissions factor for fuel procurement from the
Ministry of the Environment’s emissions factor
database (Ver. 2.4) for use with the Basic
Guidelines on Accounting for Greenhouse Gas
Emissions throughout the Supply Chain

1 14,385

Amount of fuel used foroutsourced transportation

The Coca-Cola system in Japan uses emissions
factors calculated based on the Greenhouse Gas
Emissions Accounting and Reporting Manual
Version 1.2 (Ministry of Environment and Ministryof Economy, Trade and Industry; February 2007)

21,531

Waste by weight or
disposal fee

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

4,630

Employee transportation
expenses paid

Emissions factors for transportation expenses
from the Ministry of the Environment’s emissions
factor database (Ver. 2.4) for use with the Basic
Guidelines on Accounting for Greenhouse Gas
Emissions throughout the Supply Chain

Employee commuter
expenses paid

Emissions factors for transportation expenses
from the Ministry of the Environment’s emissions
factor database (Ver. 2.4) for use with the Basic
Guidelines on Accounting for Greenhouse Gas
Emissions throughout the Supply Chain

30,73845,99 11 1 2,905

2 1 ,363

4,364

284

64

1,480

1 68

266

Activity data

Emissions factor

6

Business travel

7

Employeecommuting4,1 62

141

4,304

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

31,815

Reported amount by
weight of containers andpackaging 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.
2.4) for use with the Basic Guidelines on
Accounting for Greenhouse Gas Emissions
throughout the Supply Chain

13

Leased assets(downstream)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 0.421
kg-CO2 /kWh.

14
15

Scope 3

3 1 ,533

282

33 1 ,962

0

331,962

Franchises

N/A

N/A

N/A

N/A

N/A

Investments

N/A

N/A

N/A

N/A

N/A

1,641,724

12,831

1,654,555

Scope 3 total amount34

Platform: Resources

Primary environmental data

: Covered by third-party assurance

Category

CCBJI GroupQ’SAI Group

CCBJH Group(total)Unit

Raw materials

Sweeteners, coffee beans, tea leaves, milk, etc.

407

3

410

thousand t

Packaging

PET bottles, cans, cardboard, etc.

310

1

31 1

thousand t

1 3,3 1 665

1 3,38 1

Water used for manufacturing

thousand m3

Water consumption ratio

Water used per 1L of product

3.26

—

3.26

L/L

Energy consumption ratio

Energy used per 1L of product*1

0.87

—

0.87

MJ/L

Manufacturing

Electricity

3 1 3,1 22

3,42 13 1 6,543

thousand kWh

City gas

47,7 1 6

047,7 1 6

thousand m3

LNG

1 0,3500

1 0,350

t

1 03

0

1 03

t

1 ,1 80216

1 ,396kL

Kerosene

0

1 42

1 42

kL

Gasoline

7,950

495

8,445

kL

Diesel

57,50 1

1 40

57,64 1kL

Natural gas

0.056

0

0.056

thousand m3

824

0

824

LPG
Fuel oil

Logistics
Energy use

LPG

55,0691,356

56,425City gas

1 02

0

1 02

thousand m3

LPG

1 10

1

111

t

Electricity

Offices*2

Gasoline
DieselKerosene

Total energy use

Greenhouse gas (CO2) emissions

Retrieval and recycling

Vending machine recycling

Environment-friendly vehicles

Number of CFC-free vending machines

0

0

0

kL

0.02

0

0.02

kL

17

0

17

kL
kL

0.0 1

0

0.0 1

0

788,508

Manufacturing

5,654,48 1

47,3055,70 1 ,787

GJ

Logistics

2,522,728

22,462

2,545,1 90

GJ

Offices*2

551,670

1 3,394

565,064

GJ

Sales

7,751,033—

7,75 1 , 033

GJElectricity (vending machines)

thousand kWh

Manufacturing

263

2

265

thousand t-CO2

Logistics

1 72

2

1 74

thousand t-CO2

Offices*2

24

1

24

thousand t-CO2
thousand t-CO2

332

0

332

Total amount

1 08,299

141

1 08,440t

Recycled amount

1 08,094

2

1 08,095t

Sales
Manufacturing waste

thousand kWh

788,508

Fuel oil
SalestSteel cans

8,368

8,368

t

Aluminum cans

1 8,6 1 7

1 8,6 1 7t

Glass bottles

1 2,997

1 2,997t

0.26

PET bottles

37,54437,544t

Paper, cardboard, etc.

28,256

6

28,262t

Vending machines

39,396—39,396

machines

Hybrid (gasoline or diesel)

1 ,6500

1 ,650vehiclesNatural gas

0

0

0

vehiclesElectric vehicles

42

2

44

vehiclesClean diesel

31

1

32

vehicles

540,7 1 4

0

540,7 1 4

machines* 1	The CCBJH Group uses the Coca-Cola system’s global thermal conversion factor in emissions accounting.
*2	In regards to calculating the electricity use and associated greenhouse gas emissions of office activity, 41 out of CCBJI’s total 388 business locations were excluded fromthe scope of this year’s calculations. This was due to reasons such as being unable to obtain an accurate measurement of electricity use at leased office locations.

35

CONTENTS

SECTION 01

SECTION 02

SECTION 03

Value Creation
Story

TowardValue Creation

Foundation for
Value Creation

Third-party
assurance reportand accounting
process

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

Logistics

CCBJI’s 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
from the abovementioned plant and farm to the market(customer retail outlets, vending machines, etc.).
Also includes third-party (outsourced) transportation.

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

Offices

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

Sales

Vending machines in operation within CCBJI’s sales area	Total energy use (GJ) = annual vending machine electricity use × thermal
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 Coca-Cola system in Japan uses a thermal conversion factor and a CO2 emissions factor that are calculated based on Greenhouse
Gas Emissions Accounting and Reporting Manual Version 1.2 (Ministry of Environment and Ministry of Economy, Trade and Industry; February 2007). For electricity, thethermal conversion factor is 9.83 MJ/kWh, as stipulated in Enforcement Regulations for the Law Concerning Rational Use of Energy (revised December 27, 2002), and theCO2 emissions factor is 0.421 kg-CO2/kWh, which is the emissions factor of the average of all electricity sources in fiscal year 2004, as published by the Federation of ElectricPower Companies (2005).

36

Platform: Resources

Water Resource Conservation
Since we engage in business that relies on the indispensable resource of water, we promote water resource conservation withthe goals of reducing water use by 30% by 2030, and maintaining a 200% water resource replenishment rate through 2025.
At our plants, we strictly manage the water used to manufacture products while continually reviewing and improving
manufacturing processes and plant equipment in order not to waste any of this precious natural resource. In 2019, thewater use ratio (WUR) of product manufacturing was 3.26 liters of water per liter of product, a reduction of 0.07 liters
year on year. We work to conserve water resources by cooperating with communities and experts in efforts to return tonature a volume of water equivalent to the amount of water used for manufacturing products, and to contribute to theability of water resource areas to sustainably cultivate and store water. In 2019, we achieved a 322% water resource
replenishment rate, which was a 45% increase year on year.

The Coca-Cola system’s water cycle

For the water used in our products, we also pursue
initiatives to carefully use and return this precious natural

Within the Coca-Cola system, we regularly assess theresource to nature by replenishing water resource areas

vulnerability of water sources in line with the resource

identified through scientific surveys by specialist

conservation guidelines established by Coca-Cola Japanagencies. We work to cultivate abundant undergroundand develop water conservation plans. These plans form

water reservoirs through long-term agreements withthe basis for activities at our plants that reduce the amountregional bodies, forest cooperatives, landowners, andof water used in the manufacturing process, collect andlocal communities to carry out conservation activities

recycle as much of the water used for rinsing and coolingthat include thinning forest undergrowth, planting,as possible, and then return it to nature by releasing

flooding rice fields, and regenerating grasslands.

water that has been properly treated back into rivers.
Return water to nature
after strict water
treatment

Reduce & Recycle

Water used for manufacturing
Reducewater used

Assess water source vulnerability
	Draft and execute water resource
conservation plans

Water
reuse

River
From groundwater reserves
and rivers to plants

Groundwater

Plant

Replenish

Natural water resource areas

Water used in products
Water resource
conservation agreements
in water resource areas

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

Water used for manufacturing

13,316,017 m

3(-4.87% year on year)

Water used in products

4,080,744 kl(-2.77% year on year)

37

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

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

3.26 L/L(-0.07 liters per product liter year on year)

Replenishment area

Approx.

7,613 ha(+640 ha year on year)

Replenishment rate322%(+45% year on year)

CONTENTS

Plant initiatives and

SECTION 01

SECTION 02

SECTION 03

Value Creation
Story

TowardValue Creation

Foundation for
Value Creation

Water resource area activities to maintain a 200%
replenishment ratewater resource area activities

In April 2019, the Akashi Plant signed its first agreementwith Hyogo Prefecture and the local community for the

Plant initiatives to reduce water use 30%

conservation of the approximately 655 ha of forest in its

The Kumamoto Plant and Hakushu Plant succeeded inwater resource area. This marked the start of activities toreducing water use to new levels through the adoption ofconserve water resources over the next decade. We will

chemical-free electron beam (EB) sterilization systems.

continue to engage in and expand activities to cultivate

By investing in new manufacturing lines and actively

groundwater resources by concluding further agreements

introducing the latest technologies, our plants are

for water conservation in all our plants’ water resource

working to further reduce water use. We also use systems

areas. The water cultivated through these activities will

to manage and analyze water data to constantly improvegenerate groundwater reservoirs over the years to come,water use.

and that water will make its way through rivers to ourplants where it can be used for product manufacturing.

Production plants(prefecture)

Zao Plant
Saitama Plant
Iwatsuki Plant

Local water resource
agreements

Replenishment
rate

Water
replenishment
area(Miyagi)Zao, Miyagi

118%

235 ha(Saitama)

Katashina,
Tone, Gunma

1 64 %

1 ,545 ha

Ishioka, Ibaraki

409 %1 ,000 ha

—

—

702 %

1 ,476 ha——

Ibaraki Plant(Ibaraki)Tama Plant(Tokyo)Ebina Plant(Kanagawa)

Hakushu Plant(Yamanashi) *1

Tokai Plant(Aichi)Ena, Gifu

94 %1 42 haKyoto Plant(Kyoto)Ujitawara, Kyoto

231 %307 haAkashi Plant(Hyogo)Tamba-Sasayama,
Hyogo

328 %

655 haDaisen Plant(Tottori)

Hōki, Saihaku,
Tottori

1 ,084 %427 haHiroshima Plant(Hiroshima) *3

Mihara, Hiroshima—

705 haKomatsu Plant(Ehime)Saijyo, Ehime

363 %1 46 ha1 90 %

45 1 haTosu Plant
Kiyama Plant(Saga)*

1—
Atsugi, Ebina,
Kanagawa*2—

Tosu, Saga
Kiyama, Saga

Kumamoto Plant (Kumamoto)Ōzu, Kikuchi,
Aso,Kumamoto342 %320 haEbino Plant

Ebino, Miyazaki

625 %203 ha(Miyazaki)

Water resource
conservationagreements

15/ 17

plants(+1 year on year)*1	The Tama Plant and Hakushu Plant have not yet
concluded water resource conservation agreements(as of the end of 2019).
*2	The Akashi Plant signed its first water resource
conservation agreement in 2019.
*3 The Hiroshima Plant began operations in June 2020.
Replenishment rate (%)
Replenishment area (ha) ×10,000 ×
Precipitation (m) × Recharge

× 100

Production output (kL)38

Customer
Satisfaction

Customer satisfaction initiatives
Check!

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

For our customers
The aim of the CCBJH Group is to be a company trusted
and respected by those around us by always delivering
happy, refreshing moments through our beverages to
consumers, customers, communities, and all our

Customer Contact Center, VOC section

stakeholders. In accordance with our customer
satisfaction policy, we think and act with customer andconsumer-centricity at all times and continue to be a

Customer feedback

company that can meet the expectations of consumers

We conduct questionnaires for consumers who haveand customers as their best partner. Our Customer

lodged complaints, and provide surveys to evaluate theContact Center plays a central role in developing

quality of our customer response and consumers’

processes in line with this policy with which to meet theintention to purchase Coca-Cola products in the future.

expectations of our customers.

The VOC section is structured so that a local customer
service representative will follow up on the response to acomplaint and ensure the customer’s expectations have

Ensuring customer satisfaction

been met. Our surveys have found that for many

The Customer Contact Center is the point of contact forthis way, their interest in purchasing Coca-Cola products

all customers of the CCBJH Group. The center’s Voice ofremains unchanged or even increases.

customers who have had their complaints addressed in

Customer (VOC) section shares opinions, requests,
complaints, and other feedback received from customers
within the Group to inform initiatives aimed at improving
products and services. We comply with ISO 10002 (JIS Q
10002)*, which covers the handling of customer
complaints, throughout our customer response processes
and management system.
*A standard issued by the International Organization for Standardization (ISO)that provides guidance on the process of handling complaints related to
product and service quality. ISO 10002 does not involve third party
certification. While any organization can self-evaluate its compliance, CocaCola system members in Japan only declare their compliance after receiving
an independent compliance audit.

Customers

Inquiries/
complaints

Relevant
departments
Customerfeedback

Regional sales
representative

Improve/remedy products and services

39

Analysis
Investigation

Cooperation

Respond89%

Survey method: A questionnaire via SMS
text message sent to consumers who
had lodged complaints

Service representative initiatives
customer service representatives in our call center takeCustomerContact Center
VOC
section“I am likely to buy
Coca-Cola productsin the future”

We strive to ensure customer satisfaction by having theCustomer response process
Coca-ColaJapan

Fiscal 2019
Consumer willingness torepurchase Coca-Cola products

Countermeasures/
discussion
Development/
improvement/
remedycare to provide responses thatare accurate and attuned tocustomer needs. We are also
working to increase the quality of
our customer response throughquality control assessments ofour customer response by an
external organization and skills
improvement for each of ourcustomer service representatives.

Customer inquiry
response rate

94.3%

CONTENTS

Quality
Assurance

SECTION 01

SECTION 02

SECTION 03

Value Creation
Story

TowardValue Creation

Foundation for
Value Creation

Quality assurance initiatives
Check!

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

Fostering greater awareness of quality
We are fostering employee awareness of quality todeliver safe and trustworthy beverages to our consumers.

Quality assurance policy

CCBJI Quality Assurance Monthly Report

We offer safe, trustworthy, fresh and refreshing products
and services to our consumers. To this end, we will work toensure and improve quality in all operational processes
by considering quality our top priority.
Our basic approach to maintaining quality involves not
only complying with domestic standards, but also operating
under our globally integrated, unique management system
known as KORE (Coca-Cola Operating Requirements).
KORE covers a range of criteria in the areas of quality,
food safety, the environment, and industrial safety andhealth, and it is implemented throughout the entire
process from procurement of raw materials to
manufacturing, logistics, and sales to the consumer. In

We send out a quality assurance report every month toour heads of departments. Our department heads raiseawareness of quality issues and how we are remedying
these issues.
Sixty-second quality assurance lessons
On our intranet, we run aseries of mini lessons on
product quality
assurance to really keep
quality at the forefront of
our employees’ minds.
Quality surveys and inspections

addition to meeting the requirements of standards such

We actively work to prevent risk by having members ofas those from the International Organization forthe department in charge of quality assurance go toStandardization (ISO), and various laws and regulations,bottling plants and logistics and sales centers to check

KORE imposes even more rigorous standards.*

on quality management procedures and potential risks,*Concerning quality, we comply with ISO 9001; concerning food safety, we
comply with FSSC 22000; concerning the environment, we comply with ISO
14001; and concerning industrial safety and health, we comply with OHSAS
18001 (though some locations are currently transitioning to ISO 45001). We
have acquired these certifications at all our plants. We have also acquired ISO
14001 certification at all our sales centers and offices.

and to communicate ways of reducing risks andimproving procedures.
Videos for dealing with complaints
We produce videos—in collaboration with the sales
department—that are based on how sales representatives

Basic principles for quality

have handled complaints. These videos give tips on how

1Each of our departments is aware of its roles andresponsibilities and implements customer-driven
quality control.

2

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

3

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

to deal with complaints in way that will help gain evengreater trust from our customers and consumers.

KORE Quality Management System
Coca-Cola (Japan) Co., Ltd.
Procurement
Raw materials are only
sourced from supplierscertified by the Global
Food Safety Initiative(GFSI).

CCBJI Group

Beverage basepreparation

Manufacturing

Beverage bases undergo
strict quality inspection
using the latest analysis
equipment(physicochemical andmicrobiology testing, etc.).

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

Logistics andtransportation
We ensure careful handlingof the products
manufactured at our plants
so that they are delivered inexcellent condition.

Sales(retailers andvending machines)

Customers

We work to maintainmerchandise control at
retailers and vending
machines to ensure that we
provide consumers withproducts that are always
safe, trustworthy, and fresh.

We integrate opinions,inquiries, and otherfeedback from customers
with improvement
activities.

40

Ethics andCompliance
Ethics and compliance initiatives
Check!

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

Ethics and compliance reporting systems
We have set up the Ethics & Compliance Reporting Hotline(a dedicated email address and telephone number) so

Ethics and compliance policies

employees can directly consult about matters that conflict

In order to be a sustainable business, the CCBJH Groupand Ethics. Anonymous consultation is available, and wemust fulfill its social responsibilities and every individual

are striving to raise awareness of the hotline and create an

employee should always act appropriately. As part of this,environment that facilitates consultation by a variety of

we have enacted the Code of Business Conduct andmeans, such as issuing ethics and compliance bulletins,

Ethics, and we promote a corporate culture that

posting the hotline contact details on the Group intranetemphasizes ethics and compliance. In line with our Mission,and displaying posters in each workplace. When a report

Vision, and Values, we value acting with integrity and trust.

is received, it is investigated and if a violation is deemed

The Code of Business Conduct and Ethics covers four

with, or may conflict with, the Code of Business Conduct

to have occurred, it is dealt with appropriately andareas: right conduct, respect of human rights, dealingcorrective measures are taken. We also strive to protectwith stakeholders, and conflicts of interest. All employees

employees in the process of a consultation, and prohibit

are expected to observe all laws and regulations as well

the disadvantageous treatment of any employee who

as the Code, internal rules, and workplace principles.

initiates a report.

They are also expected to act with integrity and honesty,
to think before acting, and to seek guidance when in
doubt.

Compliance education
To further foster and inculcate high ethical standards andcompliance awareness within the Group, we regularly
disseminate ethics and compliance bulletins to all
employees, and implement awareness and education
activities, including training for specific groups—such as
management or new employees—and e-learning for all
employees.

Ethics and compliance poster
Check!

Violations of the Code ofBusiness Conduct and Ethics

None

Payment of important environmental
or ecological fines or penalties overthe past four years

None

Political contributions

Donations or spending for politicalactivities/ groups, lobbyists/lobbyist
organizations, trade association, or othertax-exempt groups

Ethics and compliance trainingWEB

Coca-Cola Bottlers Japan Holdings Group Code ofBusiness Conduct and Ethics
https://en.ccbji.co.jp/vision/pdf/en/CCBJIgroup_
Ethics_en.pdf

41

WEB

Basic Policy for Suppliers
https://en.ccbj-holdings.com/corporate/governance/
pdf/supplier_en.pdf

None

CONTENTS

Risk
Management

SECTION 01

SECTION 02

SECTION 03

Value Creation
Story

TowardValue Creation

Foundation for
Value Creation

Risk management initiatives
Check!

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

All CCBJH Group companies and departments
implement PDCA cycles and engage in risk prevention
activities. Autonomous control by the Risk Management

Risk management systems

Department serves as the Group’s first line of defense.

The CCBJH Group has set up 1) the standing Risk

Enterprise Risk Management (ERM), which handles theManagement Committee, which formulates basic policies,

administrative duties for the committees listed above, isand deliberates and decides risk prevention activities; 2)

the second line of defense. Assurance by the Internal

the Crisis Management Committee, which decides andAudit Department is the third line of defense.

Risk monitoring by the department in charge of

If an incident occurs, the Group gathers information

leads the response when a major problem or accident
occurs; and 3) the Disaster Countermeasures Task Force,and discusses an initial response and solutions using thewhich deliberates and initiates the business continuity

Coca-Cola system’s Incident Management and Crisis

plan (BCP) when a wide-area disaster occurs that

Resolution (IMCR) protocols, and the president of CCBJH

significantly impacts business activities.

may convene the Crisis Management Committee if needed.

Diagram of risk management systems
Disaster Countermeasures Task Force

Risk Management Committee

Crisis Management Committee

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

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

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

Temporary
restorationof businessInitialresponse

Emergency response plan (EP)P

ERM lines ofdefense onsultations on responsesC
between BCP logisticalsupport team and IMCR teams
Collaboration among
the Coca-Cola system members

Business
Develop
Review departments
risk
activity
prevention
resultsplan

The 1 st line

Implementation of the BusinessContinuity Plan (BCP)

Execute risk
prevention
activities

 onfirmation of the safetyCof employees
Confirmation of damage status
Establishment of the Disaster
Countermeasures Task ForceInformation gatheringStart disaster recovery support andbusiness recovery

Business
restoration

Specifyrisks

Initial risk
assessment

Evaluaterisks

Initial response

IMCR Process

Product supply andmanufacturing processes evelop demand and productionDcapacity forecasts, supply anddemand plan, and logistics planOrder confirmation, shipment, anddelivery within the Coca-Cola system

Initiatives in 2019

A

C

Risk assessment

D

Implementation ofcountermeasures

Department in charge of ERM

The 2nd line

Internal audit department

The 3rd line

Recovery

Always incorporating new elements to respond more smoothly to emergencies

Having revised the Business Continuity Plan (BCP) earlier in 2019, in October we
conducted a drill to practice connecting the disaster response headquarters, headed by
the president, with the local response headquarters in each region, and we were able toconfirm the effectiveness of the BCP. We also used an online conference system(compatible with simultaneous interpretation) for training. While utilizing this new tool,participants were able to learn how to simultaneously share images and documents inaddition to communicating verbally, and verified the response process based on the new
BCP. Immediately after the training, when Typhoon Hagibis struck, we were able to makeuse of what had been accomplished in the training to smoothly exchange information andcommunicate well. We were also able to conduct safety confirmation training for all
employees and raise their awareness of the need to ensure safety in an emergency.

Conducting the disaster response drill42

Human Rights
and Employee
Job Satisfaction

Human rights and employee job satisfaction initiatives
Check!

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

encouraged to take advantage of shorter working hours
and staggered work times, but they are also able toobtain leave for hospital visits. This includes up to threemonths of paid leave, as well as unpaid leave for personal

HR system
We appropriately evaluate and compensate employees’
contributions to the achievement of our strategic goals inline with our company Mission, Vision, and Values, as
represented by “Paint it RED! Let’s Repaint our Future.”
Aiming to continue to be an employer of choice, wewill work to attract more talented and diverse humanresources and promote the personal growth of every
individual.

injury and illness (stipend of up to 80% the standardwage) for a maximum of 30 months total leave.
Specific initiativesImplementation of a series of telework weeks
Participation in national Telework Days and Tokyo
Metropolitan Government’s Jisa Biz initiative
Establishment of days to encourage the taking of paid leaveIntroduction of IT tools via the distribution of smartphones toall employees (use of smart phone apps for clocking in andout of the office, requests for overtime, etc.)
Introduction of robotic process automation (RPA) with theaim of improving sales activities and business efficiency

Examples of systems and policies
 valuations and human resource development programs thatEemphasize values (actions) in addition to businessperformanceIntroduction of results-based bonuses that reward highperformers
Remuneration that is competitive in the labor market andawarded in accordance with the position’s roles andresponsibilities
An employee benefit system that enables employees tocontinue working with motivation and a feeling of security

Work-style reform
To improve productivity, the CCBJI Group is promoting

Working from home using IT tools

the standardization and optimization of operations
across all its companies and actively promoting theimplementation of IT and digitization while strengthening
the foundation of work-style reform.
As a measure to eradicate long hours and service
overtime, we are also deploying a clock-in system (timefrom arrival at office until leaving = working time) at all
Group companies.
To make the most of more flexible work styles, we arepromoting more comfortable working environments byintroducing a range of systems. In addition to
encouraging employees to go straight to or return home

Utilizing IT tools for
managing attendance

directly from third-party locations and to work fromhome or in satellite offices, these work systems coverareas that include a work/break interval structure,
staggered work times, flextime, planned annual leave,and leave to enable employees to participate in volunteer
activities.
We also support employees who must balance
medical treatment with work, and employees are not only

43

Health management
Maintaining and enhancing the health of CCBJI Group
employees is important to us, and we will nurture a
corporate climate that prioritizes employees’ health with

CONTENTS

the aim of remaining healthy even at the age of 100(“Road to 100”).
For employees who actively seek to improve their

SECTION 01

SECTION 02

SECTION 03

Value Creation
Story

TowardValue Creation

Foundation for
Value Creation

Occupational safety andvehicle safety initiatives

health by changing their lifestyles, we have set up aninternal health office to analyze the results of employees’

Based on the philosophy that “health and safety come first,”

physicals and stress checks together with our healthprotecting the safety and health of all CCBJI Group

insurance association to develop individual healthemployees, creating vibrant workplaces, enhancing

management plans. We are supporting the health of

productivity, and fulfilling corporate social responsibility

each employee through various internal business

form the Group’s foundation for business continuity. The

initiatives.

Group works to create and nurture a culture of safety based
upon mutual trust and by putting principles into practice.
Under the key concepts of eliminating unsafe

Coca-Cola Bottlers Japan Health Declaration

behavior and eradicating unsafe situations, we rigorously“Sawayaka Style”

engage in overall safety awareness at the workplace, and“Road to 100” – Striving for a healthy body evenat the age of 100

Coca-Cola Bottlers Japan offers products and services
that meet the needs and preferences of all generations.
We encourage our employees to lead active and healthy

inform every employee of safe behaviors and safe driving
practices, and work toward achieving zero emergencies
and zero accidents at each workplace.
Specific initiatives
 rive recorder withD
personal authentication

 afe driving training forS
new graduate employeesImplementation of
hazard prediction training ccident recurrenceA
prevention training

lifestyles in order to feel more secure and enjoy theirwork. We recognize the responsibility for each
employee to proactively maintain good health and to
take actions to enhance personal health, and theCompany and the Health Insurance Association are
working together to advance various actions to nurturea corporate climate of “Health as No. 1.”

Carrying out the “Sawayaka Challenge!!”Sleep(mental health)

ExerciseNosmoking

Meal
Break

(refreshment)

The Sawayaka
Challenge!!

In order to promote
Health & Productivity
Management companywide, we have launcheda program called“Sawayaka Challenge.”

Specific initiatives
 eld Sawayaka Walk 2019 (walking event)H
Provided videos via the company intranet of the Coca-Cola
Red Sparks rugby team demonstrating original “Sawayaka
Stretch” exercises and holding physical exercises at all
business locations
Introduced program to help employees quit smoking

Check!

Lost-Time Injury Rate

0.27

44

Corporate
GovernanceCorporate governanceCheck!

https://en.ccbj-holdings.com/corporate/governance/
Corporate Governance Report (in Japanese only)

Check!

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

making and management oversight from businessexecution. By delegating some important decisions on
business execution to executive officers, the Company

Basic policy on corporate governanceendeavors to enrich discussion of particularly important

The basic policy of Coca-Cola Bottlers Japan Holdings

expedite management decision-making on other mattersmatters at meetings of the Board of Directors andby the management team.

Inc. (the Company) is to increase managementsoundness, transparency, and efficiency, and strive toCorporate governance systemenhance mid- and long-term corporate value.
To further strengthen the governance structure, theMale director

Company has put in place an audit and supervisory
Organizational
structurecommittee structure. The Audit & Supervisory Committee,
which is responsible for the Company’s auditing, consists
solely of outside directors (Audit & Supervisory
Committee members), including multiple independent
outside directors. The Company’s management oversightfunction is further strengthened by granting to theseoutside directors serving as Audit & Supervisory
Committee members voting rights at meetings of theFemale director

Company with an audit andsupervisory committee

Outsidedirectors

7/9 members

Executive
officers

2/9 members

Independent
directors

5/9 members

Outside directors
on the Audit &Supervisory
Committee

4/4 members

Board of Directors and the right to state opinions at theGeneral Meeting of Shareholders on matters such as thenomination and remuneration of directors.
In addition, the Company has adopted the executive
officer system for the purpose of separating decision-

Corporate governance system (as of March 26, 2020)
General Meeting of Shareholders
Election/Dismissal

Election/Dismissal

Election/Dismissal

Reporting/Stating opinion

Board of Directors
ReportingDirectors

Directors serving on the
Audit & Supervisory Committee

Excluding directors serving on the
Audit & Supervisory Committee

Insidedirectors: 2

Outside directors: 7

Selection/Supervision/Delegation of
execution of important operations

Reporting execution of operations

Representative Directors

Exchange of opinions

Auditing

Audit office

Reporting

Coordination
Auditing

Auditing

Executive Officers
Group companies

Outsideindependent
directors: 2

Divisions

Reporting
Auditing/Determining proposals for election or dismissals
Coordination

45

Supervision/Reporting

Audit & Supervisory
Committee

Financial/Accounting auditors

Independent outside directors: 5

Outsidedirectors: 4

Board of Directors

CONTENTSSECTION 01

SECTION 02

SECTION 03

Value Creation
Story

TowardValue Creation

Foundation for
Value Creation

Calin Dragan

Bjorn Ivar Ulgenes

Representative Director and President

Representative Director, Vice President,
Chief Financial Officer andHead of FinanceCalin Dragan possesses a wealth ofmanagement experience and knowledge
pertaining to the global Coca-Cola businessgained as representative director andpresident of a Coca-Cola bottler in Japan andin positions at overseas Coca-Cola bottlers inseveral countries.

Bjorn Ivar Ulgenes possesses a wealth ofmanagement experience and knowledge
pertaining to the global Coca-Cola businessgained at The Coca-Cola Company.

Hiroshi Yoshioka

Hiroko Wada

Outside Director, Independent Director

Outside Director, Independent Director

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

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

Hirokazu Yamura

Irial Finan

Outside Director, Independent Director

Outside Director (serving on the Audit &Supervisory Committee)

Hirokazu Yamura possesses a wealth ofmanagement experience and knowledge
pertaining to the Coca-Cola business gained
as the representative director and presidentof Michinoku Coca-Cola Bottling Co., Ltd.

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

Celso Guiotoko

Nami Hamada

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

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

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

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

Enrique Rapetti
Outside Director (serving on the Audit &Supervisory Committee)
Enrique Rapetti possesses a wealth ofmanagement experience and knowledge, as
well as considerable knowledge regarding
finance and accounting, gained as the CFOof The Coca-Cola Company’s Latin America
Group.

46

CCBJH Group Profile

Corporate Profile (As of December 31, 2019)
Company name
FoundedCoca-Cola Bottlers Japan Holdings Inc.
December 20, 1960
(Trade name changed to Coca-Cola Bottlers Japan Holdings Inc. on January 1, 2018)

Fiscal year end

December 31

Capital¥15,232 million

Representative

Calin Dragan, Representative Director and President

Stock market listings

Tokyo Stock Exchange (First Section)

As of December 31, 2019, Coca-Cola Bottlers Japan Holdings Inc. was listed on the Fukuoka Stock Exchange, but the Company has submitted an application for delisting to
the stock exchange and plans to do so once that process is completed.

Group Structure

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

Coca-Cola Bottlers Japan
Holdings Inc.

Coca-Cola Bottlers
Japan Inc.

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

QSAI Analysis and Research Center Co., Ltd.
QSAI FARM SHIMANE Co., Ltd.

Q’SAI CO., LTD.

CQ Ventures Co., Ltd.

External Evaluations

Dow Jones Sustainability
Indices (DJSI)New Diversity
Management
Selection 100

CDP

Nikkei Smart WorkManagement Survey
four-star rating

Semi-Nadeshiko
2020

Sports Yell
Company

L-boshiwork with
Pride

Kurumin

ISO: International
Organizationfor Standardization

Health & Productivity
Management
Organization White
500

Food safety
management system
FSSC 22000

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

Awarded to CCBJH and some of its Group companies.

47

CCBJH Group’s
Corporate Information

CONTENTSSECTION 01

SECTION 02

SECTION 03

Value Creation
Story

TowardValue Creation

Foundation for
Value Creation

To enable stakeholders to better understand our business and place their trust in the CCBJH Group, we disclose information ina timely and appropriate manner. We work to provide integrated corporate information by using our CSV Report tocommunicate non-financial information, which includes strategies and initiatives to achieve sustainable growth inenvironmental, social, and governance (ESG) areas, and disclosing financial information in our Annual Review and Shareholder
Information. Please see our corporate website for the most detailed and complete information.
Financial & non-financial data
Check!

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

Financial information

Most material information

Non-financial information

Most detailed and complete information

Check!

CSV Report:
Complete edition (PDF)/Digest edition
https://en.ccbji.co.jp/csv/doc.php

Annual Review
Check!

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

Creating shared value (CSV)

Investor relations

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

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

CSV Goals

IR news

Corporate governanceInitiatives by CSV priority issue (details)

IR library

Disclosure policy

ESG data

IR events calendar

Analyst coverage

CO2 emission results based on GHG protocols

 hareholder andS
stock information

Inclusion in SRI index

External evaluation

Investor relations mail alert

CSV news

48

Plant Tours

Zao Plant
CCBJI offers plant tours to help customers become more

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

familiar with The Coca-Cola Company’s products. Guides
will introduce the origin and history of Coca-Cola, as wellas the plant’s quality control and environmental efforts.
You will also be able to see the plant’s impressive
production lines. Please come visit!

For more information on reservations,please check our website.
Check!

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

Tel. 0224-32-3505
Open: M onday through Friday and occasionally
Saturday, including holidays(excluding temporary closures)

Tokai Plant

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

Tel. 052-602-0413
Open: Monday through Friday and occasionally
Saturday, including holidays(excluding temporary closures)

Kyoto Plant

128 Tai Shinarami, Kumiyama,
Kuse, Kyoto

Tel. 0774-43-5522
Open: Tuesday through Sunday, andMonday if it is a holiday(excluding temporary closures)

49

Tama Plant

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

Tel. 042-471-0463
Open: M onday through Friday and occasionally
Saturday, including holidays(excluding temporary closures)

Ebino Plant

1321-1 Aridome, Higashikawakita,
Ebino, Miyazaki

Tel. 0984-25-4211
Open: T uesday through Sunday, andMonday if it is a holiday(excluding temporary closures)Third-party Evaluation

CONTENTSSECTION 01

SECTION 02

SECTION 03

Value Creation
Story

TowardValue Creation

Foundation for
Value Creation

I have great respect for the manner in which the CCBJH Group
has sincerely addressed creating shared value (CSV) and theway their various efforts have built upon each other. This reportpresents the CCBJH Group’s path toward creating value incooperation with society (value creation story), its specificinitiatives (actions toward creating value), and what supports
those initiatives (foundation for value creation). This clarity gives
me confidence that the company is achieving what it says it is.
Recently, more companies are being expected to proactively
address corporate social responsibility (CSR) and the SDGs.
Many of them are still prone to handling this in the form of “social
contribution,” without demonstrating a relationship between
their business development and CSR or the SDGs. This may be
because they have not yet been able to move beyond the ideathat financial gain and social gain are not mutually exclusive.

Masao Aoki

With that in mind, it is important that the CCBJH Group

Professor, Mie University,
Faculty of Humanities,
Law and Economics

shows how CSV aligns with their business and results. They
have made it possible for readers to look at the company moreobjectively by including the process through which they chose

As a specialist in businessadministration, business history,
and R&D management, I address
what defines good management
and explore the independent
identities of corporations, including
the roles that they fill in society,while I research how society can
become better through its
companies. PhD graduate (2002)of the Ritsumeikan University
Graduate School of Business
Administration.

their three platforms—Inclusion, Communities, and Resources—
and identified their nine material issues, as well as by both
highlighting their CO2 emissions accounting process andreceiving third-party independent assurance for the results.
It would, however, further strengthen the integrated aspectof the report, if it were clearer that the success of the CSV
Goals is linked to the achievement of the mid-term strategic
business plan’s financial metrics.
The CCBJH Group acknowledges that business as usual
will not result in creating the value necessary to build a better
future, and I look forward to what their persistently adventurous
spirit will achieve.

CSV Report 2020 survey
This survey is to aid in the development of our future CSV
initiatives and our next CSV Report. Please let us know yourthoughts and opinions.

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

https://form.ccbji.co.jp/form/
csv2020_en
50

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/©2020 Coca-Cola Bottlers Japan Holdings Inc. All Rights Reserved.