March 29, 2023
Immediate Release
Efforts to Contribute to Sustainable Dairy Farming #2
Launched initiatives to reduce greenhouse gas in dairy industry in March 2023

The Meiji Group and Ajinomoto Co., Inc. started a collaboration to realize
sustainable dairy farming
Converting greenhouse gas reductions in dairy farming into carbon credits that will be arevenue source for dairy farmers
The Meiji Group, which includes Meiji Co., Ltd. (President and Representative Director:
Katsunari Matsuda), and Ajinomoto Co., Inc. (“Ajinomoto Co.”) (President & Chief ExecutiveOfficer: Taro Fujie) have started collaborating to create a business model using the J-Credit
Scheme*1 in dairy farming and the dairy business. The J-Credit Scheme will realize to reducegreenhouse gas emissions (GHG)*2 and to create economic value.
Three participants with different industry perspectives collaborate to form Japan’s firstbusiness model based on J-Credit Scheme considering the economic benefit to dairy farmers.
Those participants are 1) the Meiji Group, which has a responsibility to ensure the stableprovision of dairy products to consumers, 2) Ajinomoto Co., which can supply feed that helps
reduce nitrous oxide (N2O), a known GHG, and 3) the dairy farmers being required to reduce
GHG. On March 15, 2023, this collaborative effort was registered as an official project under
the J-Credit Scheme, the GHG emissions trading platform recognized by the Japanese
government.

Disclaimer: This English translation is prepared for the readers’ convenience. When there are any discrepancies between theoriginal Japanese version and English translation version, the original Japanese version always prevails.

Summary of business model based on the J-Credit Scheme
This business model is the result of a successful collaboration between the Meiji Group andAjinomoto Co.. The Meiji Group has been supporting dairy farmers over the years. Using thecultivated business support structure, the Meiji Group and Ajinomoto Co. collaborated topromote the use of amino acid balance feed with using AjiPro®-L.
Providing amino acid balance feed with AjiPro®-L can reduce N2O emissions, a GHG derived
from cow manure that has nearly 300 times the greenhouse effect of CO2. Of the five GHG
reduction methodologies*3 for agriculture defined by the J-Credit Scheme, this is the firstproject registered based on a method of providing feed with improved amino acid balance.
GHG emission reductions achieved by dairy farmers adding AjiPro®-L in feed are converted
to credits based on the J-Credit system by Ajinomoto Co., and the Meiji Group then purchases
those credits from Ajinomoto Co. Trading credit value equivalent to the volume of GHG
reduction is paid to the dairy farmers which will be a new revenue source for dairy farmers.
For the Meiji Group, this allows us to appropriate an amount of emissions equivalent to theGHG emissions purchased through the J-Credit Scheme (carbon offset). In January 2023,
started working with Hokusho Farm (Representative Director: Yukio Sato) in Nemuro,
Hokkaido and began using feed based on this business model.
The Meiji Group will work on increasing the number of farms adopting this business modeland would like to help Japan’s dairy industry reduce GHG emissions and support dairy farmers.
Value for dairy farmers
This method improves feed and thus can reduce the upfront costs by eliminating thefacility investments for manure treatment or costs to transport manure.

Feeding improved amino acid balance leads to the conservation of the global environment
reducing N2O while maintaining milk volume.

The use of feed with improved amino acid balance helps increase milk productivity andimprove feed efficiency. This enables farmers to maintain milk volume while reducing feedcosts.

Credits purchased by the Meiji Group are paid to farmers which will be a new revenue
source.

Value for the Meiji Group

Initiatives that result in supporting dairy farming will promote stable procurement of dairy
ingredients in the future.

Manufacturers collaborated to create a business model using the J-Credit Scheme as
global environmental conservation efforts by dairy farmers and the dairy industry. Theseefforts will promote GHG emission reductions for the entire industry.

This is the first step in the dairy industry by the Meiji Group and will lead toward achievingcarbon neutrality.

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Value for Ajinomoto Co.
By creating a new business model using J-Credits, which reduces GHG emissions basedon amino acids and creates economic value, Ajinomoto Co. can contribute to realizing asustainable dairy industry.

This will promote an understanding of the importance of amino acid nutrition for dairy
cattle and the usefulness of AjiPro®-L, and lead to increased demand.

Outlook
Decarbonization in response to global warming is a pressing issue.*4 GHG emissions
produced by dairy farming total some 13.86 million tons in Japan (CO2 conversion), of whichroughly 44.5% (6.17 million tons [CO2 conversion]) comes from dairy cattle.*5 GHG derived
from living organisms is difficult to reduce without technological innovation. Thus, on a global
scale, technology development and validation related to GHG reductions are being developedrapidly. Also need to create frameworks for dairy farmers to adopt such technology without
any difficulties.
The Meiji Group believes that many dairy farmers participate in this business model andcollaborate with corporations and organizations possessing the know-how to help reduce themethane in cow burps. These expanded initiatives will lead to further reductions in GHG
emissions. Through these efforts, the Meiji Group aims to increase the sustainability of dairy
farming and the entire dairy industry.
Comments from the Meiji GroupIn addition to our efforts to reduce GHG emissions through this initiative, the issues ofachieving sustainable dairy farming are multifaceted. The Meiji Group believes our mission asa top dairy manufacturer is to challenge ourselves to develop new methods of reducing GHGemissions. As one of those efforts, we began working to create a business model using the JCredit Scheme. We will validate this project and expand the number of participating dairy
farmers. We will take on various challenges along our entire supply chain as we strive toreduce GHG emissions for the whole dairy industry. This includes initiatives related to cow
burps, which have a significant impact on the environment.
Comments from Ajinomoto Co.
The Ajinomoto Co. Group hopes to contribute to GHG reduction and sustainable dairy farming
through the power of amino acids. As one of our efforts, we have started collaborating with theMeiji Group to create a new business model that combines GHG emission reductions using
AjiPro®-L with the J-Credit system. AjiPro®-L is the feed additive which can improve aminoacid balance in feed for dairy cattle. We will work with various stakeholders to expand ourefforts by bringing together our mutual strengths and thus contribute to developing the dairy
and livestock industries.

3Meiji Group GHG reduction goals (compared to 2019)
The Meiji Group aims to achieve carbon neutrality by 2050.
Scope 1, Scope 2 (in-house emissions): 50% reduction by 2030, net zero by 2050
Scope 3 (Indirect emissions outside the company such as production, sourcing andtransportation of raw materials, and transportation and disposal of products): 30% reduction
by 2030, net zero by 2050
See Meiji Group sustainability information for details.
https://www.meiji.com/global/sustainability/caring-for-the-earth/climate-change.html#positionon-climate-change
References
Ajinomoto Co., Inc.
Location: Chuo-ku, Tokyo
Established: December 1925
Member of the Board, Representative Executive Officer, President & Chief Executive Officer(CEO): Taro Fujie
Businesses: Seasonings, Nutritional and Processed Foods, Solutions & Ingredients, Frozen
Foods, Amino Acids for Pharmaceuticals and Foods, Bio-pharma service,
Functional Materials, and others
Number of employees (consolidated): 34,198 (as of March 31, 2022)
Ajinomoto Co. Website: https://www.ajinomoto.com/

Feed with improved amino acid balance, AjiPro®-L which
can improve amino acid balance in feed for dairy cattle.
A lysine formulation for dairy cattle feed sold by Ajinomoto Co.
since 2011. Normally, lysine is digested in the cow’s firststomach, which make it difficult for the amino acid to be used
as a nutritional supplement. However, Ajinomoto Co.
succeeded in using its proprietary manufacturing technology tocoat the lysine, allowing it to reach the small intestine where it can be digested and used asnutrition. This product improves milk productivity and feed efficiency backed by solid scientificfindings. Accordingly, the product has the largest market share of lysine formulation for dairy
cattle (based on Ajinomoto Co. research) and is used worldwide.
https://www.ajinomoto.com/innovation/action/ajipro_l4

*1 J-Credit Scheme: A scheme through which the government certifies as credits the amountof CO2 emissions reduced through the adoption of energy-saving equipment, the use ofrenewable energy, and the amount of CO2 absorbed through appropriate forestmanagement. This scheme integrates the domestic credit scheme and the offset credit
scheme in a developmental manner, and is operated by the government. Credits generated
through the J-Credit Scheme can be used for various purposes, including achieving thegoals outlined in the Keidanren Carbon Neutral Action Plan as well as for carbon offsetting(Reference: J-Credit Scheme website).
*2 Greenhouse Gas (GHG): An atmospheric gas with heat-absorbing characteristics (infraredrays). Increases in GHG causes surface temperatures to rise, making GHG a main causeof global warming and the resulting extreme weather. The main GHG increasing as a resultof human activities are carbon dioxide (CO2), methane (CH4), nitrous oxide (N2O) and CFCs.
The magnitude of the greenhouse effect varies depending on the gas. For example, CH4
is said to have a greenhouse effect 25 times that of CO2, and N2O about 300 times that ofCO2 (Reference: Ministry of the Environment website).
*3 Five methodologies for GHG reduction in the agriculture sector: The J-Credit Scheme
operated by the Ministry of the Environment and the Ministry of Economy, Trade andIndustry allows the registration of five validated methodologies for the agriculture sector.
Those methods are 1) Conversion of disposal management system for livestock excreta,2) Biocarbon addition to mineral soil in cropland/grassland, 3) Abatement of N2O emissions
from cow, pig and broiler excreta disposal by utilizing low-protein feed, 4) Mitigation of N2Oemissions from tea land soil by applying chemical fertilizers containing nitrification inhibitor,and 5) Extension of the midsummer drainage period in paddy rice cultivation. This MeijiGroup initiative is the first project to put 3) into practice in dairy farming.

5*4 Climate change caused by global warming is causing severe abnormal weather in various
places, and is greatly impacting food production. In response, efforts to reduce levels of theGHG emissions that cause global warming and efforts towards a decarbonized society byaiming for net zero emissions by 2050 are urgent issues facing the agriculture, forestry,fishery, and food industries.
*5 Based on "The Situation of Livestock and Dairy Farming (in Japanese)" by the Ministry ofAgriculture, Forestry and Fisheries of Japan.

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