Risk Management

The Sapporo Group defines risks as uncertainties that may affect organizational operations, and we are working to prevent the occurrence of various management risks surrounding the Group. At the same time, we strive to minimize losses by implementing risk countermeasures as appropriate when risks that may have a significant impact on corporate activities materialize. Through these efforts, we are committed to the continued maintenance and development of our business and to securing the trust of society. Furthermore, we appropriately manage and address risks, taking into consideration both threats and opportunities that could have a significant impact on corporate activities.

The Sapporo Group has implemented Enterprise Risk Management (ERM) to enhance the effectiveness of risk management. Toward the realization of the Group Medium- to Long-term Growth Strategy, we strive to ascertain the management risks of the entire Group, identify material risks that may impede the execution of our strategy and the achievement of our management targets, evaluate them in terms of impact and likelihood of occurrence, formulate responsive plans, implement countermeasures, and monitor their progress. With these measures, we have established and are operating an appropriate risk management system, including efforts to mitigate risks.

We have established the Group Risk Management Committee as an advisory body to the Executive Council to centrally manage material risks that could significantly affect the Group’s business activities. This Committee is chaired by Sapporo Holdings President and CEO and consists of risk management officers of Sapporo Holdings and other operating companies engaged in the alcoholic beverage, food and beverage, and real estate businesses, etc. The Committee oversees all risk management activities, including the formulation of Group risk management policies, the collection of risk information, efforts to reduce risks, and the provision of necessary instructions and support to Group companies. In addition, the Subcommittee, a subordinate body of the Committee, promotes efforts to address the material risks of the Group and each company, and monitors their progress in cooperation with the departments in charge of risk management at each operating company. These initiatives and other material risks within the Group are reviewed by the Management Council of Sapporo Holdings and reported to the Board of Directors. Through such reporting, the Board of Directors oversees the effectiveness of risk management.

Furthermore, the Group Risk Management Committee manages risks related to sustainability in cooperation with the Group Sustainability Committee.

*Reference:Corporate governance structure

The Sapporo Group Corporate Code of Conduct has been translated into English and efforts are being made to disseminate it fully to all overseas subsidiaries and their affiliated companies.
Additionally, we have built a structure that can take quick and appropriate actions based on the Sapporo Group Crisis Management Rules, if an emergency situation occurs or a fact is discovered that might lead to an emergency situation.

As part of our mission of a food company, we give highest priority to providing safe products to our customers. We are strengthening our system for eliminating quality risks, by for example providing awareness-raising classes and seminars on risk management and risk communication to all related departments and sections of Group companies.

(1) If a notification or consultation related to a significant food safety or quality assurance issue is received from a customer, employee, or other party, except for insignificant issues, the quality assurance department of the involved operating company discusses corrective measures in its crisis management organization (such as a risk management committee), and after investigating the facts, report the result to the Group Quality Assurance Department, and to the Group Risk Management Committee (hereinafter GRM Committee) Secretariat.

(2) For quality assurance issues related to food safety, it is extremely important to respond promptly and appropriately at the early stage of occurrence and to quickly disseminate the information horizontally within the Group. Therefore, if there is a suspicion of a serious incident, the quality assurance department of the operating company, in cooperation with its own risk department, shall promptly report the matter directly to the Group Quality Assurance Department and GRM Committee Secretariat without going through its crisis management organization.
In that case, the GRM Committee Secretariat, which receives the report, swiftly briefs to the GRM Committee chairperson or acting chairperson, full-time members of the Audit & Supervisory Board, and other GRM Committee members. The Group Quality Assurance Department grasps the status of activities of the operating company concerned and provides support to all Group companies to ensure that the value of each brand is not damaged.

Trade Secret Management Promotion Structure

To oversee and promote the trade secret management activities of the entire Sapporo Group, we are planning to set up the Group Information Protection Committee. We will also set up a promotion secretariat at each operating company in order to promote cross-departmental trade secret management.

Handling of Accidents and Violations

If an accident or violation related to trade secret management occurs, the Sapporo Group will call a meeting of the Group Risk Management Committee and take appropriate actions, with priority given to customer protection and social responsibility

Trade Secret Management

The Sapporo Group considers trade secret management one of its business management tasks, and assesses its trade secrets to properly manage them. We also carry out employee education, as well as management activities such as handling of information security accidents or violations, in order to solidly establish information security management for trade secrets within our organization.

Safety Management of Physical Environment

We have established necessary management requirements, such as crime/disaster-prevention measures and access management/monitoring, for our buildings, offices, and other facilities, in order to ensure the safety of these facilities.

Security Management of Information Systems

To reliably protect and effectively utilize our digitized trade secrets, we have established security management requirements for information systems, including restricting access to electronic data and files, encryption of electronic data and files, and collection and monitoring of access history, as well as countermeasures against malicious programs, in order to ensure the security of our information systems.

Education

The Sapporo Group is continuing to provide education to ensure that everyone in the Group thoroughly understands our internal rules and knows how to handle and manage trade secrets.

Continuous Improvement

As part of continuous business management activities, we ensure that trade secret management is being reliably executed and that necessary improvements are being made.

The Sapporo Group has established the “Severe Disaster Response Rules”, specifying the basic policies we must follow and providing an overview of disaster countermeasures, and is continuously working on formulating a business continuity plan (BCP) in preparation for the occurrence of a severe disaster.

• Group Disaster Response Headquarters: The following matters are addressed as an initial response to a disaster.
  ① Confirm the safety of Group employees and grasp the damage situation.
  ② Grasp the extent of damage of Group sites and buildings.
  ③ Share the information of ① and ② within the Group.
  Group companies will make judgments as to whether or not to activate the BCP, and we will disclose the status of the BCP to the public as needed.
• Group Risk Management Committee: After grasping the extent of damage caused by the disaster, the committee decides whether or not to activate the Group BCP and provides support in case Group companies activate their own BCP.

※ Severe disasters: Earthquakes with an intensity of at least 6 occurring in Japan and accompanying tsunamis. Alternatively, the disasters designated by the Director of the Group Disaster Response Headquarters.

Note that the formulated BCP is revised appropriately if necessary, based on the actions when a disaster occurs and the subsequent verifications.

1. Activities within the Group
①Maintenance of disaster prevention stockpiles
We maintain a stockpile of disaster reserves necessary for life during disasters, such as emergency food and portable toilets, at all Group sites, and advance efforts in accordance with the policies of each local governments and the business operations of our companies in the event of a disaster.
②Grasping and sharing information on the safety of Group employees and the damage situation (their family members and houses)
We share the information promptly using the Group's standard emergency contact and safety confirmation system (“Emergency Call” provided by Infocom Corporation).
③Grasping and sharing information on the damage situation of buildings and facilities at Group sites
We use a building status reporting system (“BCPortal” provided by Infocom Corporation) for the group to consolidate and share information on the damage situation of all group companies by having each site input its damage situation for buildings and facilities on the Web.
During normal times, training for entering data into both systems is carried out regularly so that we can take quick action in the event of a severe disaster, and we are also reviewing our operations.

2. Activities within communities
Sapporo Real Estate, which operates and manages Yebisu Garden Place, has a written agreement with Shibuya Ward for supporting people who are unable to go home during a disaster. Based on this agreement, a system is in place to accept people who have difficulty returning home at the Yebisu Garden Place site in the event of a large-scale earthquake, and in cooperation with Shibuya Ward, regular drills are held to accept people, including companies in the Yebisu area.
Other companies within the Group are also taking steps to contribute to society and their local communities, for example concluding written agreements with local governments, covering supply of goods following a disaster.

Taking into consideration their respective business characteristics, the Sapporo Group’s operating companies (Sapporo Breweries, POKKA SAPPORO Food & Beverage, Sapporo Lion, and Sapporo Real Estate ) are continually engaged in the formulation and modification of BCP.

The Sapporo Group recognizes that if an employee posts an inappropriate comment on the Internet, such as on an SNS, or if information disclosed by a corporation or its handling of customers is improper, the resulting bad reputation can spread widely through the Internet community and ultimately lead to a serious loss of trust of our stakeholders. Therefore, the Group educates its employees on personal use of SNS and has also built a structure that can take proper countermeasures, for example through monitoring information on the web.

• Education of Group employees
  We are trying to ensure that our employees adhere to the following rules when using an SNS:
  (1) Only deal with public information
  (2) Post comments or submit information at your own responsibility.
  (3) Post comments that are transparent and do not post comments that could be perceived as slandering by other companies or people.
  (4) Respect your own and others’ privacy.
  (5) Do not use SNS for personal matters during working hours.
• Internet-monitoring structure
  We have set up a dedicated team in Sapporo Holding’s General Affairs Department that monitors the content of Group-related information posted on the Internet.
  We also have a subcontractor carry out monitoring during week nights and weekends.
  We have built a structure that enables sharing of information among the relevant departments/personnel so that appropriate countermeasures can be taken should any incident occur in which Group-related information is spread or goes viral.