Morinaga Milk Industry : 1_Morinaga Milk Sustainability Data Book 2021

Sustainability Data Book

Fiscal Year Ended March 31, 2021

MORINAGA MILK Sustainability Data Book 2021

2

[ Contents ]

Approach to Disclosure of Information on Sustainability

How to use this PDF:

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Editorial Policy

About Us

Corporate Mission

Measures for and Effects of COVID-19

Sustainability at Morinaga Milk

Seven Priority Issues

Health and Nutrition

Environment

Human Rights

Supply Chains

Nurturing the Next Generation

Human Resource Development

Corporate Governance

Policies, Philosophy and Principles

Third Party Assurance

The United Nations Global Compact Index

GRI Content Index

Contents

Approach to Disclosure of	3
Information on Sustainability
Editorial Policy	5
About Us	6
Corporate Mission	9
Measures for and Effects of COVID-19	10
Sustainability at Morinaga Milk	13
Seven Priority Issues	17

⿟Health and Nutrition

Basic Approach	27
System	27
KPIs	27
Contributing to	28
Extending Healthy Longevity
Contributing to the Healthy	30
Growth of Babies and Infants
Enhancing Public Health	34
Morinaga Milk's	35
Nutritious and Functional Ingredients
⿟Environment	37
Basic Approach
System	37
KPIs	38
Awareness of Environmental Risk	39
Compliance with Environmental Laws	39
and Regulations
Expanding Environmental	39
Activities Group-wide
Framework for Implementing	40
Environmental Management
Environmental Load Overview	41

Climate Change	42
Resource Recycling	45
Water Resources	48
Promotion of Environmentally	50
Conscious Containers/Packages
Biodiversity	51
⿟Human Rights	52
Basic Approach
System	52
Stakeholder Engagement	52
KPIs	53
Disseminating the Human Rights Policy	53
Suppliers	54
Employment Survey for	55
Non-Japanese Employees
Diversity & Inclusion	55
Workstyle Reform	58
Fair and Equitable Employment	59
Management-Labor Dialogue	59
Promotion of Occupational Health	60
and Safety in Production Departments
⿟Supply Chains	63
Basic Approach
System	63
KPIs	64
Efficient Supplier Management	64
Corresponding to Material Risk
Create a System for Providing Safe	66
and High-quality Products
Respond to Supply Chain Risks for	68
Main Raw Materials

	Responding to Customers	71
	Establishment of	74
	Emergency Supply Chain Systems
⿟Nurturing the Next Generation	76
	Basic Approach
	System	76
	KPIs	76
	Morinaga Milk's Activities for	77
	Nurturing the Next Generation
	Creating an Environment for	79
	Nurturing the Next Generation
	Online Initiatives	80
⿟Human Resource Development	82
	Basic Approach
	System	82
	KPIs	83
	System for Developing Human Resources
	to Support Business	84
	Implementing Health Management	87
⿟Corporate Governance	89
	Corporate Governance
	Compliance	90
	Information Security	92
	Policies, Philosophy and Principles	94
	Third Party Assurance	101
	The United Nations Global Compact	102
	Index
	GRI Content Index	103

MORINAGA MILK Sustainability Data Book 2021

3

[ Contents ]

Approach to Disclosure of Information on Sustainability

Approach to Disclosure of Information on Sustainability

Editorial Policy About Us Corporate Mission

Measures for and Effects of COVID-19 Sustainability at Morinaga Milk Seven Priority Issues

Health and Nutrition

Environment Human Rights

Basic Approach

In 2019, Morinaga Milk Group created its 10-Year Vision, outlining a plan for the next decade in our aim to be a company that balances delicious and pleasurable food with health and nutrition, a global company that exerts a unique presence worldwide, and be a company that persistently helps make social sustainability a reality.

Based on this idea, we have established seven priority issues and set KPIs for each under our policy of "Performing Business with an ESG-focus Aligned with Our Corporate Philosophy," one of three core policies outlined in the Morinaga Milk Medium-Term Business Plan (ending March 31, 2022).

Forms of Disclosure

Integrated Report

Starting in FY 2019, Morinaga Milk publishes the Integrated Report for shareholders and investors.

The Integrated Report is an introduction to Morinaga Milk's way of thinking and its initiatives for improving corporate value and realizing sustainable growth.

INTEGRATED

REPORT

Fulfilling our mission

Supply Chains

Nurturing the Next Generation

Human Resource Development

Corporate Governance

Policies, Philosophy and Principles

Morinaga Milk Group has to date promoted "fulfillment of CSR as the very essence of our business activities," but moving forward, we will promote business activities that continue to contribute to "realizing a sustainable society." Morinaga Milk believes that communication with its stakeholders-customers, suppliers, local communities, shareholders, investors, and employees-is critical as a guide to what kind of value Morinaga Milk can provide to society with an

WEB ▶https://www.morinagamilk.co.jp/english/ir/library/annual.html

Sustainability Data Book (this data book)

Third Party Assurance

The United Nations Global Compact Index

GRI Content Index

awareness of the changes going on in the world around us.

Morinaga Milk discloses financial and non-financial information through the Integrated Report, the Sustainability Data Book, and the company website as methods of communication. Based on the disclosure of information, Morinaga Milk engages in continuous dialogue and evaluation with stakeholders to utilize such communication in business activities.

Since FY 2018, Morinaga Milk has made the content of the Sustainability Report and Data Book in line with GRI Standards for research organizations.

The report mainly discloses information on environmental, social, and governance initiatives and Key Performance Indicators (KPIs).

Sustainability Data Book

Fiscal Year Ended March 31, 2021

Website

Morinaga Milk publishes financial information on our Investor Relations (IR) pages and non-financial information (environment, society, governance) on our Sustainability pages. Morinaga Milk takes advantage of the distinctive features of the internet to update the pages with latest information as needed, and strives to provide information that is necessary and satisfying for stakeholders.

WEB ▶https://www.morinagamilk.co.jp/english/

MORINAGA MILK Sustainability Data Book 2021

4

[ Contents ]

Approach to Disclosure of Information on Sustainability

Editorial Policy About Us Corporate Mission

Measures for and Effects of COVID-19 Sustainability at Morinaga Milk Seven Priority Issues

Health and Nutrition

Environment

Human Rights

Supply Chains

Nurturing the Next Generation

Human Resource Development Corporate Governance

Policies, Philosophy and Principles

Third Party Assurance

The United Nations Global Compact Index

GRI Content Index

Guidelines Referenced

Morinaga Milk implements integrated information disclosure, including sustainability initiatives, referencing the following guidelines.

• International Integrated Reporting Framework
• Guidance for Collaborative Value Creation
• SASB Standards
• GRI Standards
• United Nations Global Compact COP (Communication on Progress) Policy
• ISO 26000

MORINAGA MILK Sustainability Data Book 2021

102-46, 50, 51, 52, 53, 54

5

[ Contents ]

Approach to Disclosure of Information on Sustainability

Editorial Policy About Us Corporate Mission

Measures for and Effects of COVID-19 Sustainability at Morinaga Milk Seven Priority Issues

Health and Nutrition

Environment

Human Rights

Supply Chains

Nurturing the Next Generation

Human Resource Development Corporate Governance

Policies, Philosophy and Principles

Third Party Assurance

The United Nations Global Compact Index

GRI Content Index

Editorial Policy

Morinaga Milk commenced publication of the Environment Report in 2000 and the CSR Report in 2008. These reports have been published as the Sustainability Report since 2017 to make sustainable society a reality.

From 2019, Morinaga Milk has switched to online-only release of report data and discloses the requisite information from a global perspective, referencing GRI Standards. In 2020, the name of the report was changed to the Sustainability Data Book.

Scope of Reporting

The main scope of reporting covers Morinaga Milk Industry Co., Ltd. and 26 consolidated subsidiaries* in Japan and some activities of overseas subsidiaries and joint ventures.

"Morinaga Milk Group" refers mainly to the Morinaga Milk Group in Japan, while "Morinaga Milk" refers specifically to Morinaga Milk Industry Co., Ltd. alone.

* Toyo Fermented Milk Co., Ltd. was dissolved in May 2020 and is not included in the reporting.

Reporting Period

The report focuses on activities during FY 2020 (April 1, 2020 to March 31, 2021) as well as describing some background information about past activities implemented up to the time of publication, the outlook for the future, and plans, etc. In principle, graphs and tables use figures aggregated by fiscal year (April 1 - March 31).

Guidelines Referenced

This report has been prepared referencing GRI Standards. Please see the "GRI Content Index" section (p. 103) for details.

Date of Publication

September 2021

Published once a year

Responsible Department and Contact Details

Sustainability Promotion Department

Sustainability Division

Morinaga Milk Industry Co., Ltd.

33-1 Shiba 5-Chome,Minato-ku, Tokyo, 108-8384

Tel: [phone]

Fax: [phone]

Third Party Assurance

Third party assurance has been received for FY 2020 energy consumption and CO2 emissions.

Please see the "Third Party Assurance" section (p. 101) for details.

Disclaimer

The Sustainability Data Book not only includes past and current facts, but also forward-looking statements based on plans, forecasts, and management policies and strategies as of the date of publication. Results and events related to future business activities, including business performance, may differ from forecasts due to changes in conditions. Any modifications, restatements, or significant changes to previously published content will also be noted.