Ajinomoto Co., Inc.
Sustainability Initiatives Aimed at Enhancement of Corporate Value
Tatsuya Sasaki
Director, Executive Officer & Senior Vice President
Chika Morishima
Executive Officer & Vice President
March 27, 2024
Today's Message
• By advancing initiatives concerning key themes that the Ajinomoto Group should address, we seek to expand the creation of social value and economic value.
• Within these initiatives, efforts for the creation and expansion of positive impacts on society in diverse domains are accelerating, and visualization of our path toward achieving ASV* is making progress.
Today, I would like to place a special focus on initiatives to create positive impacts.
• Through communication with our stakeholders, we will further refine ASV management and connect it to the solid enhancement of corporate value.
*The Ajinomoto Group Creating Shared Value: Initiatives to create both social and economic value through its business, which the Group has been consistently engaging in since its foundation.
Examples of Achievement of ASV
Creation of Value through the Global Umami
Seasonings Business Value Chain
Creation of Value through the Umami Seasonings Business Value Chain: Overview of Initiatives
We seek to achieve sustainable agriculture and prosperity for local communities through outreach and initiatives across the value chain, from upstream to downstream.
(midstream)
Biocycle promotion through our own co-products (fertilizers)
Farmer support
Building of relationships with farmers and provision of support
Low-environmental-impact manufacturing
Improvement of health and nutrition
(technology, agricultural materials)Reduction of greenhouse gases through proprietary manufacturing technologies that conserve raw materials and fuelsProvision of reduced salt products and nutritionally balanced menus through
Deliciousness Technology
Reuse of resources
Reuse of manufacturing by-products as fertilizers, feeds, and soil conditioners
Strengthening of technical assetsStrengthening of customer assets
Purchase as raw materials
Stability and increase in suppliers' yields
(Stabilization of farmers' livelihoods)
Enhancement of employee engagement
Sharing of aspirations (Purpose);
multifaceted communication
Reduction of environmental impacts from amino acid production (GHG reduction)
Strengthening of organization and human assets
Earning of customer loyalty
Evaluation of our sustainability activities
Toward the creation of long-term economic value
Creation of Value through the Umami Seasonings Business Value Chain: Achievement of ASV and Circulation of Intangible Assets
By engaging in consumer-perspective initiatives through the strengthening of intangible assets, economic and social value will be created and will connect to long-term economic value. This is spurring the circulation of further accumulation of intangible assets, which is leading to the evolution of ASV management.
The balance between
increasing farmers'
income and reducing
raw material
procurement costs.
Creation of Value through the Umami Seasonings Business Value Chain: Elements of the Equation for Calculating Enhancement of Corporate Value
• Sales expansion
• The balance between increasing farmers' income and reducing raw material procurement costs.
• Reduction of production costs
Corporate =with
• Acceleration of initiatives through enhancement of employee engagement
• Development of global and other businesses
• Risk reduction through stable procurement via support for farmers
• Reduction of the cost of borrowing through the effective use of sustainability financing through environmental impact reduction
• Earning of customer loyalty
• Enhancement of brand power through provision of health and nutritional value to consumers and through evaluation of our sustainable initiatives
Creation of Value through the Umami Seasonings Business Value Chain: Quantification of Value Creation
Values are estimated by Ajinomoto Co., based on initiatives at global umami production plants or on cases of support for cassava farmers in Thailand.
Applicable outcomes
Specific item name
Estimated value
Reduction of environmental impacts of the value chain overall
GHG emissions
approx. 60% decrease
Scope 1 + 2 (FY2030 vs FY2018)
Social value
Stability and increase in supplier yieldsStarch yield per ha
(= Increase in farmers'
approx. 40% increase (FY2022)
incomes)
Economic value
Short-term
Reduction of production costs
Production costs
(Raw materials and fuels saving, productivity enhancement)
Productivity enhancement through adoption of proprietary technologies that conserve raw materials and fuels
approx. 4.5% decrease (FY2030 vs FY2019)
Long-term
The balance between increasing suppliers' income and reducing raw material procurement costs.
Raw materials costs
(Suppression of purchase price due to increase in starch yield)
approx. 15% decrease
Increase in sales
(= Capture of customer loyalty, enhancement of corporate brand value)
Purchasing volume x unit price
approx. 4.5% increase
Estimated value: GHG emissions are comparisons of FY2030 to FY2018. Production costs are comparisons of FY2030 to FY2019.
Starch yield and raw materials costs are provisional estimates for the single year FY2022 (assumption by Ajinomoto Co.).
Sales are estimated from the FY2022 Consumer Survey (Thailand).
Targeted scope: GHG emissions and production costs: Global umami plants
Starch yield, raw materials costs, and sales: Farmer support in Thailand 7
Key Themes that the Current Ajinomoto Group Should Address (Reposted)
Achievement of a sustainable global environment
Achievement of well-being through food
Contribution to advanced medicine and prevention
Contribution to the evolution of a Smart Society
Respect for diverse values and human rights
Reinforcement of our management foundation
Achievement of a Sustainable Global
Environment
Copyright © 2024 Ajinomoto Co., Inc. All rights reserved
We will work toward greater agricultural efficiency, crop quality, and reduction of environmental impact through the business of biostimulants* that leverage "AminoScience."
1930s
We started sales of co-products from production of umami seasoning AJI-NO-MOTO® as fertilizer, followed by worldwide roll-out to the present.
2000s onward
Research into co-products progressed, and research and development into biostimulants began.
We launched the first product, AMIHEART®, in 2011.
2017
We acquired a majority interest in Spain-based Agro2Agri S.L., which manufactures and sells amino acid-based biostimulants. Since then, we have jointly engaged in product development and customer development.
(Currently a 100% subsidiary of S.A. Ajinomoto OmniChem N.V.)
*Biostimulants: An agricultural material blending amino acids and other ingredients derived from fermentation microorganisms, natural extracts, and other natural materials to promote plants' natural power and growth.
Expected outcomes ofutilization of biostimulants
Enhancement of nutrients (proteins, vitamins, sugars, etc.)
Enhancement of quality
Reduction of water use
Reduction of chemical fertilizers and chemical pesticides
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Ajinomoto Co. Inc. published this content on 26 March 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 26 March 2024 23:20:08 UTC.