Human Capital Investment for Growth and Productivity Improvement

Human Resource Development Initiatives of Sapporo Breweries

Major career support structures of Sapporo Breweries (System chart)

Including Sapporo Holdings

Formulation and operation of Succession Plan

Sapporo Breweries has formulated and is operating a Succession Plan to identify and develop human resources for the next generation of leaders.
The company strives to develop them by dispatching approximately 40 people each year to management development programs and giving them opportunities for experience based on stretch assignments. Once every half year, a management meeting is held to confirm progress and review the training plan.

New entry-level employee training with the “tutor program”

Sapporo Breweries introduced the “tutor program” in 1988. It is a new entry-level employee training program which has been handed down over the past 30 years. Senior employees in the same workplace are appointed as tutors and receive tutor training to offer detailed guidance to new employees with support from workplace managers and colleagues.
The benefits of the program are twofold: new employees can achieve peace of mind by sharing any concerns or worries they have about their job, increasing motivation and accelerating work-readiness; for tutors, too, this program becomes an opportunity for growth, as they learn guidance techniques and make new realizations through earnest teaching activities.
Once a month until the following March, new employees write reports on their learnings and any questions they may have. The tutors and superiors in turn then check and comment on each report, with superiors also providing comments for the tutor. The participation of superiors in the education process helps foster an awareness that the entire workplace is cooperating in nurturing the new employees.
These activities are also published within the in-house intranet. The status of other new employees and tutor comments can be viewed, for further motivation and mutual growth.
As the environment surrounding the company continues to change, the growth of “human resources” is crucial. The tutor program is within the Sapporo Breweries DNA as an initiative for new employee growth, tutor growth, on-site growth and for the company’s growth as well. It is recognized as a program that needs to be continued and developed.

Sapporo Technology Academy

Human Resource Development Initiatives of Pokka Sapporo Food & Beverage

To attain the philosophy of "Create the future food standard by facing up to people and society", initiatives that promote individual and organization growth are being implemented.
Educational opportunities related to management, strategical thinking, self-directed awareness and customer perspectives are provided, in hopes of creating new values that correspond to customer needs and changes in the environment, to give birth to anticipated results from each employee, and to also develop support measures that create team and organization results.

Human Resource Development Initiatives of Sapporo Lion

Sapporo Lion aims to be a “company consisting of human resources that create results” by heightening motivation and job satisfaction through appropriate evaluation of work results according to each position and role.
Programs such as special training per work category which directly affects daily tasks, along with training per stage and self-development support are also offered. The self-development support program provides aid for correspondence education fees and for acquiring qualification. This will aid in the acquisition of expert knowledge and techniques, which will reinforce skills and hospitality mentalities to cultivate employees that can respond to customer needs.

Human Resource Development Initiatives of Sapporo Real Estate Development

We aim to find more people who want to build the future, are motivated to take on new challenges, and continue to change and grow on their own in order to look forward to the bright tomorrow of themselves, their colleagues, and the company, so we have made considerable increases in our human resource investments.
In addition to qualifications that provide work-related advantages, we encourage employees to get professional qualifications necessary to play an active role as a “real estate professional” and have established a public qualification acquisition support system where the company bears the necessary expenses. Through the use of skill maps, we are trying to improve the skills of each individual and assist further personal growth.
In order to promote DX human resources, we are training all employees to become DX and IT promoters and aim to develop and assign 15 DX and IT leaders by 2026. We encourage all employees to get IT passports and G certifications as well as provide proactive reskilling opportunities.

Human Resource Development Initiatives of the Sapporo Group Logistics

Sapporo Logistics ★ Human Resource Development University (commonly known as "Logi Daigaku")

In an era of severe environmental changes surrounding logistics, we consider human resource development to be one of the most important issues, and have opened and operated the Logistics University since 2019 with the aim of fostering and developing human resources to promote logistics reform throughout the Group. Every year, participants from various divisions as well as logistics divisions from Group companies participate in the program, and a total of 82 people have completed the course by 2022. The University of Logistics provides opportunities for a wide range of activities, from acquiring basic knowledge of logistics to raising SCM-based issues that lead to business strategies. The course provides an opportunity for students to interact with each other and engage in friendly competition to think more deeply about logistics.
Since logistics and management are closely related, we provide learning opportunities not only for Logistics University students, but also for all Group employees, including management. One of these is the Open Seminar, in which prominent lecturers from outside the company are invited to speak on issues that straddle the value chain, including management, organization, front-line operations, and DX, providing an opportunity for Group employees to view logistics issues as their own.

Sapporo Breweries Health Management Initiatives

The direction of all company health and safety practices are based on the Sapporo Breweries Health Creation Declaration and constituted as the “Health and Safety Activity Guidance” by the labor and management.
Health and safety activity plans are annually constituted and implemented at each company in accordance with the above Guidance for the health and safety of all employees and zero occupational and traffic accidents. Activities are reviewed by reflecting on the past six months.
In the event of an occupational accident, confirmation of the accident status at occurrence, identifying causes and proposal of measures are swiftly implemented across the organization, to prevent similar hazards in other business operations.
Initiatives and statuses are shared regularly at the “Safety and Health Committee”, which consists of representatives from the company and the labor union, and discussions are made to ensure proper implementation of the Health and Safety Activity Guidance.
In addition, Sapporo Breweries is a member of the “Food Industry Labor Conference,” which is run by the Junior Executive Council of Japan . Sapporo Breweries works to resolve labor issues and health management using information regarding the food industry shared at these conferences.

The 2024 Health and Safety Activity Guidance

1. Continued health and safety practices will be promoted in branch offices and the workplace based on the “Health and Safety First” motto and to “ensure the health and safety of workplaces for the health and safety of all colleagues to create an environment that brings out the maximum potential of all employees.” These activities will be widely shared to employees to enhance the awareness toward health and safety in branch offices and workplaces.
2. Promotion of 5S and its activities will be developed as a foundation for health and safety.
3. Basic analysis of branch offices and workplaces based on actual statuses and trends including Hiyari Hatto will be conducted for proactive initiatives that incorporate various ideas. Furthermore, active provision of information and reminders will be implemented throughout the company with cooperation from both the head office and headquarters, to enhance awareness within the organization and between each employee.
4. Branch office and workplace health and safety meetings will be held regularly to share and deliberate various measures with the goal of enhancing initiatives.
5. Health and safety activities in all workplaces will be promoted, between Sapporo employees and in all related and cooperative company employees as well.
6. In the event of an occupational accident, thorough deliberation will be made between branch offices and workplaces to propose countermeasures. These countermeasures will be implemented without fail to prevent recurrences. Horizontal networking will be conducted between workplaces to prevent recurrences in other locations.
7. Initiatives promoting prevention of occupational hazards and also prevention of accidents during commuting will also be implemented.
8. Initiatives toward occupational health issues will be actively implemented to maintain and enhance physical health. Furthermore, other issues such as that in mental health will continue to be implemented with cooperation from industrial physicians and EAP companies.

Even before stress checks were made mandatory, Sapporo Breweries utilized EAP services from specialized external organizations to provide care for the mental health of its employees. As such, the company practices care activities from two angles: “self-care,” which is carried out by the employees themselves, and “line care,” which is implemented by workplace managers. With regard to self-care, training takes place for employees once a year, during which they are encouraged to carry out self-diagnosis, recognize the symptoms of stress, and understand how to cope with them.
Line-Care Study Sessions for management level employees, and regional operation site observations by special external staff have been conducted.
Mental health care will continue to be promoted within the company with help from in-house and external collaborators for a lively and comfortable workplace and to maintain the mental health of each employee.

*EAP (Employee Assistance Program): An employee support program to improve and maintain corporate productivity and spirit by aiding mental health care in the workplace through early stress detection and issue-resolving programs.

Initiatives promoting communication in the workplace

Mental health as well as physical health is directly linked to labor productivity and has significant impact on engagement. As priority issues, we have identified the decrease in the sense of unity in the workplace due to lack of communication as a result of telecommuting, and physical and mental impacts due to the decrease in physical activity to revitalize communication.
In 2020, Sapporo Group held seminars for managers to encourage them to hold and utilize 1-on-1 meetings that contribute to human resource development and organizational revitalization. In addition to meetings, in an online environment, we actively utilize and recommend IT tools such as chat functions and call functions, from daily conversations to cross-organizational communication and publish excellent initiatives on the intranet to encourage horizontal expansion. More than 1,500 people from Sapporo Holdings and Sapporo Breweries in 2020 and more than 1,650 people in 2021 participated in the team-based health promotion measures held in the entire group.
As an evaluation of communication that replaces the sense of unity in the workplace in 2020, we evaluated “work engagement”, “surrounding support”, and “environment and situation in the company and work”. In the new survey carried out in 2020 to 2023, the deviation values of these items all went up. Regarding support from others, we did not reach our 2023 target (deviation of 55), but our score of 54.6 was 0.1 better than in 2022.
In addition, more than 80% of employees responded in the 2022 internal survey that efforts toward "teamwork" and "work-life balance" were "practiced" by more than 80% of employees. In 2023, however, the ratio of employees requiring special attention for stress decreased by 0.7%, while the ratio of employees with high stress increased by 0.5% from the previous year. In addition, we are sharing survey results and exchanging opinions with workplaces for improvement. In addition, we will continue to analyze the factors of high stress, engagement, and presenteeism based on the results of the survey items, differences in job types, and lifestyle habits through questionnaires, and implement PDCA (Plan-Do-Check-Act) cycles to explore new communication styles in the "Sapporo Workstyle," a new way of working. Sapporo Group will continue to further explore new communication forms within the "Sapporo Workstyle".

Improving Workplace Environments

Lifestyle habits such as exercise, diet, alcohol consumption, and smoking have a significant impact on presenteeism and absenteeism. In addition, the results of our own survey showed a correlation between psychological subjective sense of health and work engagement. Sapporo Breweries' challenge is to improve lifestyle habits that cause lifestyle-related diseases and mental disorders, which were correlated with subjective sense of health, and to make the workplace environment healthier, which will lead to behavioral change among those who are indifferent about their health. With the aim of creating a healthy workplace where employees can play an active role, each site across the country is promoting participation in e-learning and behavioral habit creation measures related to health. As a result, the percentage of employees who have already taken steps to improve their lifestyle (sum of those who have been working for less than 6 months and those who have been working for more than 6 months) has been increasing year by year, and the smoking rate has been decreasing year by year. On the other hand, "the percentage of employees who walk or engage in equivalent or greater physical activity for 60 minutes or more every day" has been decreasing in organizations with many telecommuting workers, and the 2022 survey showed a correlation between the percentage of employees with exercise habits and presenteeism, as well as between the percentage of high-stress individuals and physical activity for 60 minutes or more per day. Therefore, we have positioned the promotion of physical activity and exercise habits as a priority issue, and are strengthening our efforts to encourage participation in health measures. In addition, information useful for mental and physical health is posted on the intranet, and materials and videos of study sessions are available for anyone to view.

The number of participants in the group-wide workplace-based team-based measures for habituation to healthy behaviors (exercise, diet, and smoking cessation course selection) increased to more than 1,500 in 2020, 1,650 in 2021, 1,670 in 2022, and 1,760 in 2023 for the total number of Sapporo Holdings and Sapporo Breweries executives and employees. In 2022, 78% of the respondents to the post survey indicated that their health awareness had increased or somewhat increased. In addition, the number of participants in the health insurance-sponsored web walk increased from approximately 490 in the fall of 2021 to approximately 650 in the spring of 2023.

In the year to September 2023, the percentage of executives and employees participating in participatory exercise measures increased to 58% from 56% the previous year. Approximately 40% of officers and employees, including members who did not participate in the exercise program, participated in the participatory eating program. more than 99% took the e-learning course on proper alcohol consumption in 2023.
In 2022, the percentage of employees who walked or engaged in physical activity of equivalent or greater intensity for at least 60 minutes daily improved by 2% from 2021, and by an additional 2% in 2023. The percentage of those who exercise at least twice a week increased by 1% in 2023 compared to 2022. However, this is still lower than the KPI (50%) for the exercise habit rate in 2026.

The smoking rate also decreased to 18% in 2022, but has not yet reached the target of 12%. 2023 is the year in which efforts are being made to set a non-smoking goal for each workplace. 2023 survey also analyzed the relationship between survey results and lifestyle habits, including presenteeism and work engagement by industry sector, The results showed that exercise habits and physical activity are important for improving productivity in the workplace. We will continue to promote the health of the workplace environment by activating health communication centered on our bases, as well as measures to deepen understanding of why healthy behaviors are necessary for the promotion of mental and physical health.

Concrete responses to industrial accidents

There was one accident which required leave from work: fall.
In light of these accidents, the Sapporo Group verified the conditions in which the accidents occurred, standardized work processes, and carried out “risk assessment for getting stuck or caught in machines”; the Group also investigated the UV lights-out functions of clean benches at all its plants, installed warning signs, and implemented injury risk KYT.
Information regarding the two accidents was immediately shared among all plants, and risk assessments were carried out at each workplace to prevent similar accidents from reoccurring; employee education and training programs are currently being implemented.

Contributing to health through the breeding technology of Sapporo Breweries

Since its founding in 1876, Sapporo Breweries has been committed to “using only the finest ingredients to make delicious beer“ and has been breeding its own barley and hops.

Commitment to raw materials (Japanese)

Using this breeding technology, Sapporo Breweries developed and registered a glutinous edible barley variety called "Mochiriboshi" (2011), a type of dietary fiber rich in β-glucan. Due to its high fiber content, a staple food such as barley rice can also be an excellent source of dietary fiber. Saitama Prefecture, where “Mochiriboshi” is cultivated, was selected as the designated production area for this barley variety (2023).

Experiencing the "Space Classroom" through Food

"Haruna Nijo" barley, developed by Sapporo Breweries to explore the possibilities of "food" in space, stayed on the International Space Station for five months and returned home. Sapporo Breweries are holding the "Space Classroom," a hands-on event utilizing the offspring of this "space-traveling barley. Through the experience of planting seeds, harvesting, and tasting barley tea made from the barley that traveled through space, we continue to nurture children's "dreams for space" (25th event in 2023).

Co-prosperity with Society

Pokka Sapporo Food & Beverage's Health Management Initiatives

Action Guidelines

• Pokka Sapporo Health Management Activity Policy for 2023

  We will promote PS's health management by leveraging the knowledge and expertise we have accumulated through our business activities, as well as our efforts to support the mental and physical health of our customers.

• Pokkasapporo Health and Safety Activity Policy for the Entire Company in 2023

  Based on the Declaration of Health and Happiness Creation and Health Management Activity Policy, we will realize a safe and secure work environment.

Sapporo Lion's Health Management Initiatives

Sapporo Lion belongs to the restaurant industry, yet also believes itself to be a company that alleviates stress. To this end, the company has made it its mission to provide customers with the Joy of Living.
So that Sapporo Lion can recognize any signs of mental or physical illness among employees at the earliest opportunity, the company encourage managers and supervisors to acquire qualifications in mental health management.
In order to combat long working hours, which is an issue in the restaurant industry, Sapporo Lion has established a Work Style Reform Promotion Committee. The committee seeks to prevent health issues stemming from overwork; at the same time, it aims to promote work styles that prioritize employee health, such as by including information provided by occupational health physicians in company newsletters.
The monthly company newsletter features a column entitled “Eisei” (“Voice of Health”) in which Sapporo Lion communicate messages from occupational health physicians to employees. Depending on the time of year, the column provides Sapporo Lion's restaurants with information on heat stroke, influenza, noroviruses, and other health-related topics from the perspective of occupational health physicians. Through such initiatives, the company is working hard to improve the knowledge of employees when it comes to preventing heat stroke at our beer gardens, and other issues.

Prevention, early detection and response to stress-related diseases such as mental health problems

In recent years, a growing number of young female employees have developed mental illnesses in Sapporo Lion. The cause of mental illness in workers is "stress," and there are various factors that cause that "stress." Factors related to work stress: (1) relationships, (2) quality of work, and (3) quantity of work. Referring to the results of the annual stress check, Sapporo Lion decided to focus on women in their 20s and 30s. The company conducted a questionnaire about their career and work environment (superiors) in advance and held a roundtable discussion based on it. This meeting was exclusive to women in order to create a place where women can exchange opinions, and frankly discuss and summarize their relationships, work-related situations and environments, and individual feelings. The roundtable discussion allowed early detection of mental disorders and the results were sent to the executive meeting for feedback. By having opinions reach the upper management of the company, Sapporo Lion believes that reviewing work styles and improving the overlooked adverse environment will prevent the occurrence of mental illness. At the same time, this will also lead to a long-term plan which aims to achieve "zero mental disorders among young people." In addition, industrial physicians and public health nurses always provide support and interviews with workers to clarify stress factors and giving guidance for gradual improvement.
The response value of the stress check is also gradually decreasing. Sapporo Lion will continue to disseminate not only physical information but also stress prevention measures related to mental health in the health management corner "Eisei” of the company newsletter.

Return to work after a leave of absence, balancing work and treatment

Some employees with a mental injury, illness or disorder have the desire and capacity to work but have difficulty balancing work and medical treatment, including hospital visits. That often prevents them from continuing to work or going back to work.
Sapporo Lion aims to achieve a 100% return to work after a leave of absence by conducting thorough consultations with occupational physicians and occupational health nurses regarding the timing of return to work.
In addition, by sharing the necessity and significance of the company's and organization's efforts, we create a workplace culture that facilitates a balance between treatment and work.
The company also ensures that its occupational health nurses regularly follow up with employees after they return to work.

Strengthening sustainability

To ensure the health of our customers, employees and their families, Sapporo Lion, together with our business partners, prioritizes respect for and protection of human rights as well as consideration for environmental safety throughout the supply chain in the provision of our products.

Creating an Age-Friendly Workplace - Health Measures for Senior Citizens

In FY2022, our "Health Check for Seniors" initiative was launched, primarily for rehired employees 60 years of age and older. This year marks the second year of the program.

It is a reality that, compared to younger workers, the percentage of those who have decreased mobility (muscle strength, agility, etc.), vision, and hearing loss, as well as diseases such as high blood pressure and diabetes, is also increasing.

Based on the opinion of an occupational physician, "Health Check for Seniors" is conducted in person or remotely at the Health Consultation Office every year in the month of birth.

*Health checkup contents

1. Confirmation of health checkup results and disease treatment status
2. Hearing about self-perceived symptoms and work-related problems
3. Eye-opening one-leg stand test and 5-fold stand test (as physical fitness check and fall risk assessment)
4. On-site interview (how about from the viewpoint of other employees)

Sapporo Real Estate Health Management Initiatives

Certification of Excellent Health Management Corporation 2023 (Small and Medium Sized Corporation Category (Bright 500))

In recognition of our proactive efforts in health management, we have been granted the Health Management Excellence Corporation 2023. We will promote and continue various initiatives to improve the health of our employees.

Silver Certification as an Excellent Healthy Company

In October 2022, we received the "Silver Certification" as a company with excellent health management. We will continue to promote the maintenance and promotion of good health by raising each employee's awareness of his or her mental and physical health.
We continue to promote the maintenance and promotion of good health by raising each employee's awareness of his or her own physical and mental health.

In addition to the health improvement measures implemented by the Sapporo Group, SAPPORO REAL ESTATE promotes one-on-one meetings between employees and their superiors as a way of preventing overwork and of recognizing changes in physical and mental well-being among employees.
The company has also introduced flextime, teleworking, and paid leave on an hourly basis; these measures are aimed at enabling each of employees to adopt flexible work styles that suit their lifestyles.
Every month, SAPPORO REAL ESTATE convenes a Health & Safety Committee formed of both company and employee representatives; discussions are held regarding working hours, workplace environments, and improving mental and physical health.
The company also promotes more energetic working environments and better work-life balances by sharing information via company social media, and by actively establishing environments that facilitate online communication.

Initiatives aimed to promote communication in the workplace

At SAPPORO REAL ESTATE, we are working to improve psychological safety and engagement in order to become an organization that takes on the challenge of creating future value. The foundation for these objectives is workplace communication. With the increase in remote work and online interactions, we have identified the promotion of communication as one of the most critical issues to address.

In 2021, we introduced a system of "Thanks Points." Employees give each other "Thanks Points" as an expression of gratitude and praise to increase mutual interest, communication within the organization, and motivation.
We also operate employee profiles and an internal blog to create opportunities for communication, and hold online exchange meetings between Ebisu and Sapporo, as well as year-end parties.
We have also started an online lunch meeting trial led by members of an internal project called the "Management Vision Project," and we will continue to promote communication by holding face-to-face meetings with the president's caravan with the aim of becoming an organization that can mutually move for the benefit of its colleagues.

Sapporo Field Marketing's Health Management Initiatives

Certified as Excellent Health Management Corporation 2023 (Small and Medium Sized Corporation Category (Bright 500))

Minebea has been certified by the Ministry of Economy, Trade and Industry (METI) and the Japan Health Council as one of the "Excellent Corporations for Health Management 2023," which recognizes corporations that are implementing excellent health management practices. At the same time, the Company also received the "Bright 500" certification, which is given only to the top 500 corporations in the health management survey results among corporations certified in the small- and medium-sized corporations category. After the certification, we will continue to strengthen activities to promote health in cooperation with other companies in the Sapporo Group.

“Silver Certification” for Excellent Corporate Health

In recognition of efforts to improve the health promotion environment, SAPPORO FIELD MARKETING received the "Silver Certificate" for Excellent Corporate Health issued by the Federation of Health Insurance Associations in 2023, following on from 2020 to 2022.
The entire company is working together to actively promote health management.

Improvement of Workplace Health and Preventing Occupational Accidents

Health Management Initiatives of Sapporo Group Logistics

“Silver Certification” for Excellent Corporate Health

In April 2021, we started health management and in July 2022, we received the "Silver Certification" as an excellent healthy company. The certification was also granted in 2023. The entire company is working together to actively promote health management.

Health Management Initiatives of Sapporo Distribution System

The Sapporo Group distribution department comprises four business bases that own Sapporo trucks. Of these, three have fulfilled the following evaluation criteria of the Japan Trucking Association: 1. Compliance with safety laws and regulations; 2. Accidents and violations; and 3. Proactive safety measures. As such, they have received G-mark accreditation as companies that are exemplary for safety.*
More specifically, SAPPORO LOGISTICS SYSTEMS is engaged in measures to prevent products falling from vehicles, mandatory blood pressure checks before driving, and updating its product loading work processes.

*Companies that are exemplary for safety are accredited by the Japan Trucking Association, following fair evaluations of the safety systems they have in place. The accreditation is aimed at making it easier for consignors and general consumers to choose trucking companies with higher standards of safety, and at raising awareness of the importance of improving safety standards.

Sapporo Group Logistics' White Logistics Initiatives

Declaration of Voluntary Action

The four companies of the Group have expressed their commitment to work toward improving the efficiency and workability of logistics, focusing on "standardization of logistics operations" and "establishment of a network of Group bases."
In cooperation and coordination with our affiliates, we will strive to improve the working environment for truck drivers and warehouse workers.

Standardization of logistics operations

We have improved visibility by aligning the display position of the product code used to identify cartons at the distribution site. We will realize a more comfortable working environment for a diversified workforce, including foreigners and the elderly, whose numbers are expected to increase in the future.

Establishment of a network of Group bases

In order to shorten the transportation distance from the factory base to the delivery destination, Sapporo Breweries Ltd. established a new distribution base in the Tokai area, and Pokka Sapporo Food & Beverage LTD. proceeded with a new production consignment in the western Japan area.
We will continue to review our network of bases to ensure compliance with laws and regulations and to further reduce the burden on truck drivers.

Preventing and managing health issues

The Sapporo Group believes employee health to be of the utmost importance and, for this reason, works hard to improve the safety and health, and health literacy of its overseas employees.

Sleeman Breweries

• The Health and Safety Committee is convened every month
• The Personnel Department engaged in educational activities regarding health via the company newsletter and other means
• Information on mental health, introduction of consulting organizations, and seminars are provided
• Mentor-ship Program was launched, focusing on maintaining mental health through a mentor-mentee pairing system

Stone

• Safety committee meetings are held daily at each workplace.
• Set up a mental health awareness month to educate employees about mental health
• Established a system in which all employees can receive mental health support through external resources.

Sapporo Vietnam

• Employees are provided with health insurance as part of company welfare benefits, and all local employees undergo regular health check-ups once a year
• The Personnel Department issues a newsletter every month with the aim of raising health awareness
• Employees attend lectures presented by health care workers once a year

POKKA

• All local employees undergo regular health check-ups once a year
• The Personnel Department shares information regarding health

Measures to combat infection

Malaria infects more than 200 million people worldwide every year; tuberculosis infected an estimated 10 million people in 2019, while 1.7 million people were infected with HIV during the same year^*. The Sapporo Group recognizes the importance of promoting health on a global scale. At present, in order to reduce the health risks associated with infectious diseases, the Sapporo Group implements a variety of measures not only in Japan but across the world; these measures are outlined below. Going forward, the Group intends to further promote education regarding infectious diseases.

COVID-19

• POKKA: Establish COVID-19 safety management measures in the workplace and ensure employees are aware of them Control of corona cases in the company and provide the necessary support.
• The Sapporo Group’s North American businesses: In accordance with national policy in the U.S. and Canada, the Sapporo Group’s North American businesses are recommending teleworking.
• Sapporo Vietnam: In September 2022, the 5Ks (masks, disinfection, spacing, not gathering in large numbers, and health declarations) that had been required as infection control measures were reformed to 2Ks (masks and disinfection) and the regulations on mask wearing were relaxed (masks will continue to be worn in public places and medical institutions), so operations are being switched to be in line with these government guidelines. While ensuring hygiene in manufacturing facilities and offices, the wearing of masks has been made optional.

Zika fever and Dengue fever

• POKKA: POKKA shares information regarding the causes and treatments for Zika fever and Dengue fever with its employees

Tuberculosis

• Sapporo Vietnam: The company carries out regular health check-ups once a year on all its local employees, which include a chest X-ray

Rabies

• Sapporo Vietnam: The company provides rabies vaccinations to non-local employees working in Vietnam

Safety and health activities

• Sleeman Breweries: Health and Safety Committee convened once a month
• Anchor Brewing: Safety Committee convened once a month
• Stone: monthly safety committee meetings
• Sapporo Vietnam (Long An Brewery): Labor Health and Safety Meeting convened
• POKKA once a month:
  • Safety Committee convened once a month, and safety conditions around the workplace are checked
  • Emergency Response Teams receive training from external experts regarding how to use fire extinguishing equipment
  • Evacuation drills take place twice a year

Environmental Sustainability

• Pokka:
  • Implemented CSR (Corporate Social Responsibility) activities every six months
  • Implementation of garbage pickup of waterways by employee volunteers.

SAPPORO BREWERIES

The labor agreement between the Sapporo Breweries Labor Union and the company states that “The Company recognizes the union as the only legitimate negotiating body representative of employees” and that “The Company authorizes free union activities. Union members shall not receive detrimental treatment for their participation in the union and for their legitimate union activities,” to ensure rights for negotiation and freedom of association.
Labor-management agreements on work hours and management discussion have been made. A negotiation system for swift and substantial resolutions exists for decisions on labor condition standards and introducing new programs, along with revision/discontinuance of programs. These decisions are made through activities such as formal union negotiations and through discussions with a special committee dealing with collective bargaining. For the wellbeing of employees, initiatives in health and safety, work style reforms, and health management are developed within the company through close exchange of opinions between the company and the labor union.
A management negotiation system has been incorporated and is conducted twice a year, to provide opportunities to exchange opinions, in which company and union representatives discuss topics such as management policies and content.

Pokka Sapporo Labor-Management Relations

The POKKA SAPPORO Labor Union is a union workplace, and all regular employees are members, except for managers and non-union employees as defined in the collective agreement.

The collective labor agreement stipulates that "the company and the union shall mutually respect each other's fundamental rights based on the principles of fair understanding and good faith, and shall establish working conditions on an equal footing and make efforts to maintain and improve them, with the aim of contributing to the achievement of the social mission of the beverage and food business," and "the company and the union shall ensure that this agreement is observed and faithfully performed. The agreement specifies the purpose of the agreement and the obligation to comply with it, and clearly defines the right to collective bargaining and the prohibition of disadvantageous treatment.

In order to create a better working environment for labor and management, the company and labor union representatives hold monthly labor council meetings to exchange opinions on the operation of various systems, occupational health and safety, health management initiatives, and other issues. In addition to the monthly labor council meetings, management council meetings are held twice a year to provide an opportunity for management and labor union representatives to exchange opinions on management policies, management details, and other issues.

Sapporo Lion

In 1989, the year following the company’s listing in the Second Section of the Tokyo Stock Exchange, the Lion Branch of the Sapporo Breweries Labor Union became an independent organization as the labor union of Sapporo Lion; today, some 30 years after its foundation, the union has approximately 350 members.
Sapporo Lion bases its activities on the following three pillars: creating comfortable working environments that provide job satisfaction; improving labor conditions in the pursuit of comfort and quality of life; and, creating dynamic organizations through the participation of all members. Sapporo Lion holds labor-management meetings twice a year—at the Management Advisory Committee Meeting and at the Labor-Management Discussion Meeting—when it makes recommendations regarding corporate management and communicates feedback from its members. The majority of recommendations made at the above meetings are implemented, and in this way labor and management work closely together to carry out corporate management.
The union’s Mandarin Orange-Picking welfare event, which was first held when Sapporo Lion was still part of the Sapporo Breweries Labor Union, continues to be held every year on Culture Day, on November 3. Every year, the event attracts more than 100 participants, including company employees and their families, as well as company officers. Sapporo Lion also holds a variety of other welfare activities.
In addition, starting in 2023, the "Personnel and Wage System Review Committee" will be held regularly by labor and management to exchange opinions on how to create a comfortable workplace and stable living environment.

Reform of Sapporo Breweries Work Styles

In 2017, Sapporo Breweries launched “Work Style Reform 2020” aimed at improving productivity, physical and mental health, and promoting a fulfilling lifestyle.
As a four-year initiative until 2020, each employee prioritized their own tasks and made choices while incorporating the telecommuting system, hourly paid holiday system, super flextime system, and interworking interval system to expand work-style options and create more private time. In this manner, the company has implemented reforms that allow for more flexible and productive work styles.
In 2021, the company launched an external side job system, an internal side job system, and an internal internship system. Along with this, the company has promoted initiatives to realize autonomous work styles, work styles that achieve results through teamwork, and work styles that enhance the quality of work-life balance as the basis of its “Let's KAITAKU,” the code of conduct to realize the management philosophy and vision established in 2020.
In addition, items related to work style reform were introduced into the evaluation items for managers.
Amidst this situation, the outbreak and spread of COVID-19 forced employees to restrict their commuting to the office and to work in a different way from the past, mainly through teleworking, for a prolonged period. Under these circumstances, the company launched “Sapporo Workstyle” in July 2022, a new working way with COVID-19 that emphasizes face-to-face interaction and dialogue. This serves as a new work style to realize the ideal state of employees (autonomy, teamwork, and work-life balance) that the Work Style Reform aims to achieve.
Drinking alcohol has the power to bring people together. The company has a long history and culture of working with alcoholic beverages, and it is committed to a work style that emphasizes face-to-face interaction to connect people with each other and realizes a work style that allows people to demonstrate their abilities whether they come to the office or telework. By doing so, Sapporo Breweries aims to increase organizational and individual productivity and engagement.
Even after the change in the status of COVID-19 under the Infectious Diseases Control Act, Sapporo Breweries will continue to promote workplace reform initiatives based on the two pillars of the Work Style Reform and Sapporo Workstyle.

Pokka Sapporo Food & Beverage's Workplace Reforms

Since 2017, POKKA SAPPORO Food & Beverage has actively engaged in work style reforms; with the introduction of measures such as flextime, teleworking, and work-interval systems, the company sought to use time and space more effectively. One year later, data showed that these measures had succeeded in reducing working hours by the equivalent of a day a month for each employee.
In addition, with the aim of supporting independent career development, personal growth, and new challenges, from October 1, 2021, we have allowed side jobs and provided opportunities for employees to take on new challenges. While making full use of these systems introduced before the Covid-19 Disaster, we are working to improve the working environment and productivity of diverse employees under self-management and self-leadership in the Covid-19 Disaster.

Sapporo Lion Workplace Reform Initiatives

Sapporo Breweries Efforts to Reduce + Manage Working Hours and to Promote Paid Leave Usage

Pokka Sapporo Efforts to Reduce + Manage Working Hours and to Promote Paid Leave Usage

Sapporo Lion Efforts to Reduce + Manage Working Hours and to Promote Paid Leave Usage

Sapporo Real Estate Efforts to Reduce + Manage Working Hours and to Promote Paid Leave Usage