Sustainability Material Issues and Implementation Structure

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.

* 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, PK, YSM, 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, PK, YSM, FBS, 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, PK, YSM, FBS, 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	2030	At least 30% female executives
					SH, SB, PS, SRE, SLN		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, PK, FBS, 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)

Sapporo Group Environmental Vision 2050

Sustainability Material Issues: Progress and Achievements up to the 1st half of 2023 (136KB)

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

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

Step 4: Approval of priority issues

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

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.

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