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Sustainability Material Issues and Implementation Structure

Sustainability Material Issues

The Sapporo Group had identified materiality as a CSR priority issue in 2017, we have thoroughly reviewed its Sustainability Material Issues in response to changes in the social situation and business environment surrounding our Group in 2022.
We have identified 9 sustainability material issues by evaluating "the degree of impact of our business on society and the environment" and "the degree of impact of society and the environment on our finances" in terms of risks and opportunities. In particular, we have positioned "Realization of a decarbonized society," "Mutual prosperity with local communities" and "Active participation of diverse human resources" as the most important issues for management.

Through the Time and Space where all our businesses are playing, we contribute to Well-being of People and Local Communities

Risks and Opportunities by Material Issues

Classification Most Important Issues Material Issues Specific Initiatives Relevance to Each Business Impact of Our Business on Society and the Environment Social/Environmental Impact on Corporate Finances Connection to Economic Value
Alcoholic
Beverages
Food
Beverages
Real
Estate
Risk Opportunity Risk Opportunity
Harmony with the Environment Realization of a decarbonized society
  • Reduction of greenhouse gas emissions at our own sites and supply chain
Large Large Large Medium
  • Reduction in energy consumption through energy conservation, etc.
  • Reduction of cost increase when carbon tax is introduced in the future
Realization of a recycling-based society
  • Realization of containers and packaging compatible with a recycling-oriented society
  • Reduction and recycling of plastic resources
Large Medium Large Medium
  • Stable procurement of materials
  • Creation of new business models based on resource recycling
  • Reduction of waste and food loss
  • Profit generation by providing lean services
  • Elimination of disposal costs
  • Conservation of Water Resources
  • Reduce risks such as securing high-quality water resources, etc.
Realization of a society in harmony with nature
  • Crop cultivation that responds to climate change
  • Facility/community development that coexists with nature
Medium Small Medium Medium
  • Long-term stable procurement of raw materials through implementation of climate change adaptation measures
  • Creation of added value through collaboration with raw material producers
Co-prosperity with Society Mutual prosperity with local communities
  • Improvement of regional value
  • Resolution of local issues using company resources
Medium Large Medium Large
  • Generate profit by increasing real estate value
  • Creation of new sales opportunities based on regional development
  • Stable procurement of high value-added domestic raw materials
Providing health value
  • Provision of health value through business
Small Large Small Large
  • Profit generation by providing health value
Building a sustainable supply chain
  • Respect for Human Rights in the Supply Chain
  • Reduction of environmental impact in the supply chain
  • Stable procurement
Large Small Large Small
  • Reduce risk from supply chain instability
Success of Human Resources Active participation of diverse human resources
  • Promotion of Diversity & Inclusion (D&I)
Small Medium Large Large
  • Increase productivity by enhancing work engagement
  • Creating new value by improving individual skills and integrating diverse values
  • Investing in human capital for growth and productivity
Promoting Responsible Drinking
  • Awareness-raising of responsible drinking
Medium Medium Medium Medium
  • Building a foundation to support stable business continuity
Providing Safe Products and Facilities
  • Food safety
Large Medium Large Medium
  • Building safe facilities

Sustainability Material Issues Targets and Indicators

* Target setting company notation SH: Sapporo Holdings, SB: Sapporo Breweries, PS: POKKA SAPPORO Food & Beverage, SRE: SAPPORO REAL ESTATE, SLN: Sapporo Lion, SGF: Sapporo Group Foods, SBL: Sleeman, SUSA: Sapporo USA, SVL: Sapporo Vietnam, YSM: Yasuma, FBS: Foremost Blue Seal, PK: Pokka, SSI: Shinsyu-ichi Miso

Classification Most Important Issues Material Issues Specific Initiatives Indicators Targets Setting Companies Target Year Targets SDGs goals
Harmony with the Environment Realization of a decarbonized society Reducing greenhouse gas emissions at company sites and supply chains
  • Greenhouse Gas Emission Reductions
Sapporo Group 2030
  • Scope 1,2 Reduce greenhouse gas emissions by 42% compared to 2022
7.2
13.1
17.17
Sapporo Group (SB, PS, SBL*)
  • Scope 3 Reduce greenhouse gas emissions by 25% compared to 2022
  • FLAG Scope 1,2,3 Reduce greenhouse gas emissions by 31% compared to 2022

    * Commitment letter submitted to SBT initiative, accepted

Creating a Recycling Society
  • Realization of containers and packaging compatible with a recycling-oriented society
  • Reduction and recycling of plastic resources
  • Usage rate of recycled materials in PET bottle products
SB 2030
  • Domestic production of wine PET bottles: Recycled material usage rate 50%
12.3
12.4
12.5
14.1
PS 2030
  • Domestic sales of PET products: Recycled material usage rate 50%
  • Reduction of plastic used in advertisement products
SB 2030
  • Single-use plastic advertising products derived from fossil fuels: abolished in principal domestically
Reduction of waste and food loss
  • Implementation rate of food recycling, etc.
SLN 2024
  • Implementation rate of food recycling, etc.: 50%
  • Waste recycling rates at production sites
SB, PS
  • Waste recycling rate of 100% at domestic production bases
Conservation of Water Resources
  • Water usage reduction rate
SB, PS 2030
  • Reduce water usage at domestic production bases by 10% (compared to 2013)
6.4
  • Water risk management
SB, SBL, SUSA, SVL, PS, YSM, SGF (PK, SSI)
  • Survey of water risks at all production bases, etc. once/within 3 years
  • Efficient use of water
Realization of a society in harmony with nature
  • Crop cultivation that responds to climate change
  • Facility/community development that coexists with nature
  • Progress in developing ingredients to respond to climate change
SB 2030
  • Application for registration of domestic varieties of barley and hops with characteristics that can respond to climate change
13.1
15.4
Co-prosperity with Society Mutual prosperity with local communities
  • Improvement of regional value
  • Resolution of local issues using company resources
  • Progress in sustainable urban development that contributes to improving area brand value
SRE
  • Improving the value of properties and creating excitement
  • Community formation, strengthening, and expansion with stakeholders in the vicinity of properties
  • Creating facilities that are friendly to everyone
4.7
8.9
11.3
11.7
17.17
  • Progress of our “regional revitalization business”
SB
  • In order to create sustainable regions in cooperation with local governments, we will conduct matching between local food suppliers and companies at food business meetings
  • Satisfaction rate of local governments, suppliers, and buyers at business meetings is 75.0% or higher.
  • Progress in building an environment for lemon production in Japan
PS ◆Long-term
  • Inherit the rich land and blessings of lemon cultivation in Japan for the future generations and the local community.
◆Short-term
  • Increase the minimum unit of farmland by at least 2,000 m2 every year
  • Taking over farmland without a successor
  • Implementation of initiatives to regenerate abandoned farmland
  • Number of regional learning programs (food education, on-site classes, factory tours, etc.) related to the food and beverage business
PS, SGF 2030
  • Ten times as many as FY2021 (400 cases)
Providing health value Provision of health value through business
  • "Pokka Lemon" brand summary [Annual purchase rate (%)・Annual purchase quantity (number per buyer)]
PS 2030
  • Contribute to people's well-being by expanding the total demand for lemons by disseminating the health functions of lemons and proposing uses and occasions.
2.1
3.4
11.3
  • Development status of products that contribute to customer health
PK 2030
  • Promote the development and market penetration of new products with a focus on health, aiming for a 10% sales composition ratio (limited to POKKA products)
  • Status of acquisition of certifications for properties that contribute to the provision of health value
SRE
  • Acquisition of certification for owned properties that contribute to the provision of health value
Building a sustainable supply chain
  • Respect for Human Rights in the Supply Chain
  • Reduction of environmental impact in the supply chain
  • Stable procurement
  • Compliance rate with the Sustainable Procurement Guidelines
SB, SBL, SUSA, SVL, PS, YSM, SGF (FBS, PK, SSI), SLN
  • Implementation of measures to promote and disseminate the Basic Procurement Policy and Sustainable Procurement Guidelines
10.2
15.3
17.17
SB, PS
  • 100% compliance rate with the Sustainable Procurement Guidelines of major suppliers
  • Progress of human rights DD process
SB, SBL, SUSA, SVL, PS, YSM, SGF (FBS, PK, SSI), SLN
  • Establishment and implementation of a scheme (*) that can confirm respect for human rights in the supply chain (Priority implementation from major raw materials and high-risk raw materials)

    * ① Compilation of a list of the supply chain for each raw material
    ② Confirmation of daily activities through questionnaires, etc.
    ③ Investigation of the situation, etc. as necessary
    ④ Confirmation of corrective actions as necessary

SB, PS 2025
  • Confirmation that human rights are respected when procuring major raw materials and high-risk raw materials
SRE
  • Understanding the actual situation regarding respect for human rights in the value chain in the real estate business
Success of Human Resources Active participation of diverse human resources Promotion of Diversity & Inclusion (D&I)
  • Development status of systems and environments that match diverse values and new work styles
SH, SB, PS, SRE, SLN 2026
  • Work engagement (*) 54 or higher

    * Index <deviation value> based on stress checks and employee awareness surveys

5.5
8.5
SBL 2026
  • Percentage of employees who received D&I training: 100%
  • Percentage of employment leaders who have attended conscious inclusion training: 100%
SVL
  • D&I comprehension 6.0points(*)
  • Number of local employees in management: 2
  • Organizational Culture Survey 6.00points(*)

    * Indicators from the “Organizational Culture Survey” by SVL (out of 7 points).

PK
  • engagement(*) 80%

    * Indicators based on "Employee Survey" conducted by PK (76% benchmark)

  • Progress status of promotion of women's empowerment
SH, SB, PS, SRE, SLN 2026
  • At least 12% female executives and at least 12% female managers
SH, SB, PS, SRE, SLN 2030
  • At least 20% female executives and at least 20% female managers
Investing in human capital for growth and productivity
  • Progress in fostering a challenging culture for future value creation
SH, SB, PS, SRE, SLN 2026
  • Integrated survey “Challenges for future value creation” (*) 3.0 or higher

    * Sapporo Group's own survey index based on stress checks and employee awareness surveys <1.0 to 4.0 digitized>.

  • Progress status of human resource development through active investment (management human resources/global core human resources/DX/IT core human resources)
SH, SB, PS, SRE, SLN 2026
  • Sufficient personnel to provide successor candidates for management positions
  • 100 persons of global core human resources
  • 200 persons of DX/IT core human resources
  • Degree of improvement in productivity due to improved mental and physical health
SH, SB, PS, SRE, SLN 2026
  • Presenteeism loss rate (*) 33.4% or less

    * An index based on stress checks and employee awareness surveys, the average of SH and the four operating companies

Promoting Responsible Drinking Awareness-raising of responsible drinking
  • Progress in the labeling of pure alcohol content
SB 2025
  • 100% display of pure alcohol content (g) per bottle on canned alcoholic beverages and lightly alcoholic beverage containers produced and sold domestically
3.5
  • Percentage of employees participating in awareness-raising activities related to responsible drinking through e-learning, etc.
SB, SLN
  • Education through e-learning, etc. for all domestic employees (more than once a year) 100% participation
  • Number of incidents of accidental ingestion of alcohol at restaurants
SLN
  • 0 cases
  • Display rate of messages to prevent drinking under the age of 20 on restaurant menus and at the POP
SLN
  • 100%
Promoting Safe Products and Facilities Food safety
  • Operation and continuous improvement of the food safety assurance system
  • Number of serious food accidents
SB, SBL, SUSA, SVL, PS, SGF (FBS, PK, SSI), SLN
  • Reflect the voices of customers and other stakeholders (including inside the company) in the food safety assurance system
  • Reduction of the occurrence of serious food accidents
2.1
Building safe facilities
  • Status of initiatives for promoting facility safety
SRE
  • Securing appropriate emergency power sources for properties
  • Reliably secure seismic performance of properties
  • Periodical review of contingency plans and execution of drills
11.3

* Counts for more than 2/3 of the relevant emissions of the entire Sapporo Group (Inserted below the box in the list)

Process for Identifying Material Issues

Step 1: List the issues

  • Comprehensive list of sustainability issues based on international frameworks such as GRI standards, SASB, and ESG rating assessment items
  • Extract items from the list of issues that are particularly relevant to the Sapporo Group's business type and format

Step 2: Prioritize issues

  • Based on the issues identified, score the "degree of impact of the business on society and the environment" and the "degree of impact of society and the environment on our finances" from the aspect of "risk and opportunity" for each business
  • Prioritization at Sapporo Holdings and major operating companies based on relevance to vision and management strategy
Prioritize issues

Step 3: Advice from external experts

  • Dialogues with external experts from both the investor and multi-stakeholder perspectives were held to obtain objective advice on priority issues

External experts who participated in the dialogues

  • Mr. Minoru Matsubara, Executive Officer and General Manager of Responsible Investment Division, Resona Asset Management Co., Ltd.
  • Ms. Makiko Akabane, CSR Asia Japan Representative

In addition to the assessment that we have captured important issues in the Group's business, we have received the following perspectives.

  • Linkage between business strategy and sustainability material issues
    • Implications of each issue for business development using natural capital
    • Financial implications in terms of both risks and opportunities
  • The importance of clearly stating the Group's specific efforts to address each issue
    • Value of raw materials, regional initiatives, etc.
    • Disclosure of specific strategies for human capital

Step 4: Approval of priority issues

  • Approval of the final identified material issues by the Management Council and the Board of Directors

Sustainability Implementation Structure

Sapporo Holdings has established a Group Sustainability Committee, chaired by the President and representative director of the Company, as an organization that formulates an overall policy for the promotion of the Group's sustainability activities and ensures cooperation and coordination within the Group.
The Corporate Planning Department of Sapporo Holdings develops and implements various measures to promote sustainability activities in each Group company, and works with sustainability personnel at operating companies to share information and confirm progress.

The Sapporo Group's Sustainability Implementation Structure

Group Sustainability Committee

  • Meetings are basically held twice a year
  • Main topics of discussion
    • Monitoring of the performance against the sustainability material issues
    • Review of strategies and policies for each issue
  • Discussions, resolutions, reports, etc. at the Management Council and Board of Directors meetings according to the agenda
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