Climate Change

“Global Vision 2030” expresses our vision of the future for the 糖心原创vlog Group. It states our “goals” and strategies to achieve these by the year 2030, including our goal to “become a company whose presence in global society is ever more meaningful, through activities unique to 糖心原创vlog.” We want to contribute to solving global issues, so that the company will be valued by people around the world.

In recent years, many places around the world have faced social issues such as health problems, water shortages, and flooding due to high temperatures and heatwaves. The damage from these issues has continued to grow. These types of abnormal weather are strongly related to climate change, and are social issues that threaten life, finance, and economic activity on a global scale. In light of this, climate change has been incorporated as one of the Sustainable Development Goals, and long-term goals have also been defined within the Paris Agreement.

Based on the long-term goals in the Paris Agreement, the 糖心原创vlog Group is working to reduce CO₂ emissions and seeking to realize net-zero CO₂ by 2050. In order to contribute to the achievement of the long-term goal of pursuing efforts to limit the temperature increase from pre-industrial times to "1.5℃", we are promoting initiatives to cut at least 50% of CO₂ emissions by 2030 compared with 2018 based on our Long-Term Environmental Vision.

Medium- and long-term reduction targets for CO₂ emissions

Our targets have been approved by the Science Based Targets initiative (SBTi), and the targets are shown below.

To reduce absolute scope 1 and 2 GHG emissions 50.4% by FY2031 form a FY2019 base year.

To reduce absolute scope 3 GHG emissions 30% within the same timeframe.

Scope1???Direct emissions of greenhouse gases by an organization (fuel combustion, industrial processes)

Scope2???Indirect emissions associated with the use of electricity, heat and steam supplied by other entities

Scope3???Indirect emissions other than Scope1 and Scope2 (emissions by other entities related to a organization’s activities)

CO₂ emission reduction target（Scope１+ Scope２）

*Net zero CO₂ emissions means to achieve an overall balance between CO₂ emissions produced and CO₂ emissions removed
*In June 2023, we renewed our target for 2030 from 30% or more to 50% or more.

The amount of CO₂ emissions

Total CO? emissions（Scope1）

（thousand t-CO?e）
	FY2019	FY2021	FY2022	FY2023	FY2024	FY2025
Japan	73.1	72.5	69.9	66.2	58.9	60.0
Overseas Manufacturing & Sales	24.9	24.4	26.9	26.4	26.1	27.3
Overseas Wholesale	14.8	14.0	15.4	15.1	14.9	15.1
Total	112.8	110.9	112.3	107.7	99.9	102.4

Total CO? emissions（Scope2）

（thousand t-CO?e）
	FY2019	FY2021	FY2022	FY2023	FY2024	FY2025
Japan	56.8	52.3	40.5	16.3	12.8	11.5
Overseas Manufacturing & Sales	47.1	42.4	36.8	31.1	29.5	26.3
Overseas Wholesale	12.9	14.5	16.6	10.5	7.4	4.4
Total	116.9	109.2	93.8	57.9	49.7	42.1

Total CO? emissions（Scope3）

（thousand t-CO?e）
	FY2019	FY2021	FY2022	FY2023	FY2024	FY2025
Japan	760.9	722.7	734.7	794.0	706.6	751.0
Overseas Manufacturing & Sales	374.9	377.1	414.1	415.4	405.3	451.2
Overseas Wholesale	1,007.0	1,040.1	1,178.7	1,322.6	1,211.5	1,250.4
Total	2,142.8	2,139.8	2,327.4	2,532.0	2,323.4	2,452.7

Scope3 By Category	FY2019	FY2021	FY2022	FY2023	FY2024	FY2025
Total	2,142.8	2,139.8	2,327.4	2,532.0	2,323.4	2,452.7
Category 1　Purchased goods and services	1,569.0	1,587.5	1,723.3	1,868.4	1,676.7	1,752.9
Category 2　Capital goods	90.2	66.6	78.4	122.2	136.5	147.0
Category 3　Fuel - and energy-related activities	49.3	50.3	51.8	49.3	43.3	44.8
Category 4　Upstream transportation and distribution	322.4	325.0	353.1	371.5	345.5	360.7
Category 5　Waste generated in operations	5.7	5.3	5.6	7.8	7.4	8.3
Category 6　Business travel	0.9	1.0	1.0	1.0	1.0	1.0
Category 7　Employee commuting	2.6	2.8	2.8	2.9	2.8	2.9
Category 8　Upstream leased assets	0.4	0.4	0.4	0.3	0.4	0.3
Category 9　Downstream transportation and distribution	20.9	21.1	23.1	22.5	25.9	27.5
Category 10　Processing of sold products	46.5	43.4	47.1	46.4	44.7	50.7
Category 11　Use of sold products	0.0	0.0	0.0	0.0	0.0	0.0
Category 12　End-of-life treatment of sold products	34.8	36.5	40.7	39.7	39.2	56.6
Category 13　Downstream leased assets	0.0	0.0	0.0	0.0	0.0	0.0
Category 14　Franchises	0.0	0.0	0.0	0.0	0.0	0.0
Category 15　Investments	0.0	0.0	0.0	0.0	0.0	0.0

※Scope：糖心原创vlog Corp. and its consolidated subsidiaries

*For information on each Scope3 category, please refer to the following website.
狈辞迟别蝉：
?CO₂e stands for CO₂ equivalent and shows the value of greenhouse gases converted to carbon dioxide.

Verification

For the FY2025 greenhouse gas (GHG) emissions and environmental information (water usage), we have obtained a third-party verification statement from Japan Management Association Sustainability Center to enhance reliability.

Greenhouse gas emissions / Environmental Information Verification Statement [PDF:3.8MB]

Disclosures based on TCFD recommendations

The 糖心原创vlog Group recognizes that climate change is one of the most serious issues facing international society. Our Group believes that addressing climate change equates to putting into practice our Management Principles aimed to become a company whose existence is meaningful to the global society, and also has financial implications directly connected to the resilience of our strategies for sustainable growth.

Our Group has declared its support for the Task Force on Climate-related Financial Disclosures (TCFD) of the Financial Stability Board (FSB). Based on TCFD recommendations, we evaluate risks and opportunities concerning our operations stemming from climate change, and disclose information on our governance, strategy, risk management, indicators, and targets.

Governance

Our Group has established a Sustainability Committee chaired by the CEO. The Sustainability Committee sets company-wide policies for initiatives, identifies risks and opportunities, and determines how to respond. It also reviews specific measures and oversees their internal rollout and external communications. It also reports to the Board of Directors on matters related to sustainability as appropriate. Based on reports from the Sustainability Committee, the Board of Directors determines our Group’s key sustainability-related policies, oversees progress, and incorporates them into our Group’s management strategy.

Environmental Management Promotion System

Strategy

In 2018, the Group formulated Global Vision 2030 (GV2030) as its long-term vision for defining basic strategies and goals based on its Management Principles. In formulating Global Vision 2030, we conducted analysis from two perspectives: Material Social Issues for Society and Material Social Issues for the 糖心原创vlog Group. This led us to identify three material social issues: Global Environment, Food and Health, and People and Society. The 糖心原创vlog Group Long-Term Environmental Vision, our environmental vision aimed at 2030, was established in 2020 to guide specific measures. While advancing activities under this vision and others, the Group has long understood that flooding risks associated with earthquakes and climate change could result in business disruptions and weaker earnings. Accordingly, the Group has advanced measures including business continuity planning (BCP) and natural disaster simulation. Across the Group, we carefully watch the potential for major impacts on operations due to climate change, such as changes that climate change could cause to the use of natural materials in core products. Amid growing concerns in society over the risks of climate change, the Group follows the TCFD recommendation to analyze risks in multiple scenarios that could affect our business domains, to quantifiably measure risks and medium- to long-term impacts on the Group stemming from climate change.

Climate-Related Risks and Opportunities

Key Climate-Related Risks

The core business of the 糖心原创vlog Group is the manufacture and sale of soy sauce, soy milk, ketchup, and tomato juice. Revenues of the domestic and international food manufacturing and sales segments, including our core business, in the fiscal year ended March 2025 were 321,471 million yen, accounting for about 45% of overall Group revenues. The key materials used in our food manufacturing businesses are agricultural products including soybeans, wheat, and tomatoes, the cultivation of which is greatly affected by climate change. Soy sauce business and soymilk business sales of 234,402 million yen account for a major portion of total Group sales (about 33%). The soybeans and wheat used in soy sauce and the soybeans used in soy milk are affected by market conditions for these agricultural products. Our Group’s raw materials must also meet stringent quality and food safety standards independently established by our Group, and procurement sources are limited. For this reason, changes in the amount of rainfall and effects of drought and heavy rains in cultivation areas due to climate change present risks.

Over 90% of the soybeans used in the soy sauce we produce comes from North America. Frequent natural disasters and extreme droughts in the North American region caused by climate change can change supply and demand relationships, resulting in procurement difficulties and soaring prices.

Key Climate-Related Opportunities

The 糖心原创vlog Group holds advantages in product development technologies centered on fermentation and brewing. We are able to leverage these strengths to process varied materials, including alternative materials that address material procurement challenges under climate change, to develop products that take advantage of natural umami. In this way, we are able to deploy competitive product groups made with alternative materials and create opportunities for pioneering new markets.

The 糖心原创vlog Group manufactures soy sauce and other food products not only in Japan but also overseas. Through this, we have accumulated food manufacturing know-how and technologies. In soy sauce brewing and fermentation processes, temperature control is important. For example, at the Walworth Plant in the U.S., where the average winter temperature falls below freezing, we adopted equipment capable of drawing in more cold outside air for temperature control, thereby reducing CO2 emissions associated with the operation of refrigeration equipment.

Through innovation in manufacturing processes and equipment, the 糖心原创vlog Group carries out manufacturing more efficiently, enhancing our productivity and allowing us to manufacture products in a manner suited to a low-carbon society. These initiatives are creating opportunities to reduce costs.

List of Risks and Opportunities Associated with Climate Change

Climate Change Risks and Opportunities	Specific Details of Risks and Opportunities	Business Impact	Timeframe
Physical Risks	Risk of severe disasters associated with climate change (e.g., flooding, power transmission failures)	Small	by 2050
Physical Risks	Risk of difficulties in raw material procurement and cost increases associated with climate change	Small	by 2100
Transition Risks	Risk of increased manufacturing costs due to investments for climate change adaptation	Small	by 2027
	Risk of higher manufacturing costs due to investments for climate change mitigation	Medium	by 2030
	Risk of increased burden due to carbon taxes	Medium	by 2030
	Risk of consumer aversion—deterioration in corporate reputation due to delays in climate change action, human rights violations, etc.	Medium	by 2050
	Risk of cost increases due to introducing renewable energy	Small	by 2030
	Risk of higher manufacturing costs due to introducing alternative technologies to replace fossil fuel-derived gases	Medium	by 2050
	Risk of higher transportation costs due to surging fossil fuel prices and procurement of alternative fuels	Small	by 2027
Opportunities	Opportunity to increase sales through product development technologies using alternative raw materials	Small	by 2027
	Opportunity to reduce costs through energy-saving activities	Small	by 2030
	Opportunity to enhance brand and corporate value and influence consumer choice by implementing climate change mitigation measures	Small	by 2030

Scenario Analysis

The Group’s scenario analysis is based on Representative Concentration Pathways (RCP) scenarios, with reference to reports by the Intergovernmental Panel on Climate Change (IPCC) and net-zero scenarios (NZE) from the International Energy Agency (IEA). Analytical results and estimated impacts on Group operations for each scenario are outlined below.

Climate Change Scenarios and Models	Content
RCP2.6 RCP8.5	Summary of scenario analysis: The IPCC has reported that climate change could lead to more frequent and larger natural disasters. In light of this, the Group used the RCP2.6 and RCP8.5 scenario to analyze the potential impacts of climate change on its production facilities, based on location information for major facilities. To evaluate impacts on the Group under 2°C and 4°C temperature rise scenarios, we employed RCP2.6 and RCP8.5 scenarios. The natural hazards of flooding, strong winds, high tides and forest fires were analyzed. To understand the current state of natural hazards, the Group analyzed changes in hazards caused by climate change and measured the potential impacts of these changes on production facilities. To assess current natural hazards, we referred to the Flood Hazard Map of the World & European Union, GAR 2015, and other databases, while also consulting hazard maps published by the Ministry of Land, Infrastructure and Transport and local governments in Japan and data gleaned from simulations run by external consulting firms. The Group’s analysis of trends under climate change relied on RCP2.6 and RCP8.5 for flooding and high tides and SRES A1B and SRES A2 for strong winds during typhoons and forest fires, respectively. While verifying the change in disaster frequency with existing literature, research results and hazard maps, the Group measured the potential impacts from increases in global temperatures. The Group’s analysis covered natural hazards at the production facilities of the entire Group. Due to the need for decision-making from a long-term perspective, the Group followed RCP2.6 and RCP8.5 through the year 2100.
	Results of scenario analysis: For all production facilities of the Group, flooding presents the greatest natural hazard risk. Under climate change, the frequencies of flooding, typhoon-force winds, and forest fires are likely to increase. However, climate change does not present changes to the threat of flooding at production facilities due to higher tides.
	Impacts of scenario analysis results on business strategy: The results of the scenario analysis are used in the evaluation of climate change’s impacts on the 糖心原创vlog Group’s business strategies. Before the scenario analysis, the Company had been aware of the risk of business interruptions and decline in earnings caused by flooding. Group-wide, management has advanced measures that include BCP and simulations of natural disasters. The results of the scenario analysis have prompted management to consider additional measures at facilities that are at risk of serious impacts from climate change. In 2020, the Group established and released the 糖心原创vlog Group Long-Term Environmental Vision as our long-term environmental policy aimed at 2030. To achieve net zero CO2 emissions by 2050 and pursue efforts to constrain temperature rise to within 1.5°C of the level prior to the industrial revolution, in June 2023 we updated our CO2 reduction target through FY2031 from 30% to 50% and in December 2023 obtained certification from the Science Based Targets initiative (SBTi). The results of our scenario analysis informed the creation of targets for our long-term environmental vision.
RCP2.6 RCP8.5	Summary of scenario analysis: To assess changes in our ability to procure key materials, we used the 糖心原创vlog Group’s procurement quantities of key materials by procurement source country to recognize trends in changing procurement potential, taking into account fluctuations in countries’ harvest volume per unit of area under climate change. We used FAO GAEZ v4 simulation data to assess changes in countries’ harvest volumes under climate change. In the simulations, we performed analysis using production forecast value (t) data for target crops (soybeans, wheat, tomatoes, and rice) under climate change in two scenarios (based on RCP2.6 and RCP8.5). To assess changes in harvest volumes from current levels, we analyzed changes in production forecast value (t) for target crops (soybeans, wheat, tomatoes, and rice) by procurement source country, and summarized the results, weighted and averaged by procurement country ratio, as the achievable rate of harvest volume change (%). To evaluate impacts on the Group under 2°C and 4°C temperature rise scenarios, we employed RCP2.6 and RCP8.5 scenarios. The analysis covered soybeans, wheat, tomatoes, and rice, which are key materials and procured goods for the 糖心原创vlog Group. Due to the need for decision-making from a long-term perspective, the Group followed RCP2.6 and RCP8.5 through the year 2100.
	Results of scenario analysis: Analysis revealed that, despite producing area-specific differences in both the 2°C increase and 4°C increase scenarios, risks are generally low. In the 4°C increase scenario, however, there is a risk of a decline in tomato harvest volume in Spain from 2070 onward.
	Impacts of scenario analysis results on business strategy: The results of the scenario analysis are used in the evaluation of climate change’s impacts on the 糖心原创vlog Group’s business strategies. Prior to the scenario analysis, the Company had managed key materials risks through procurement of alternate materials or from other regions to avoid impacts on business. Based on the analysis results, we will further strengthen management. However, as serious impacts will not materialize for several decades and time exists for evaluating and implementing countermeasures, the risks do not currently influence the business strategies of the 糖心原创vlog Group.
IEA NZE Scenario	Summary of scenario analysis: Based on the 糖心原创vlog Group’s total emissions calculated from current Scope 1 and Scope 2 total emissions (t-CO2), we estimated the costs of achieving the Group’s medium- to long-term reduction targets under the IEA WEO 2023 NZE scenario. We analyzed costs for a number of cases involving measures to achieve our targets, including cases in which reductions are achieved through the use of renewable energy combined with various capital investments and production efficiency improvements, cases in which renewable energy or non-fossil-fuel credits are deployed to cover the entire usable amount, and cases in which the entire amount of emissions is paid for through carbon taxes, depending on conditions in renewable energy markets. A timeline through 2030 is considered, in line with the 糖心原创vlog Group’s medium- to longterm targets for reducing CO2 emissions. Total emissions (Scope 1+2) for the 糖心原创vlog Group are considered.
	Results of scenario analysis: As various capital investments, fuel conversion, improvements in production efficiency, and other measures are already progressing at production facilities, choosing additional measures for reducing CO2 emissions will not be easy from a cost-benefit perspective. As the Group has production facilities in the developed world where increases in carbon taxes are expected and public pledges for net zero emissions have been made, failure to advance CO2 emissions reductions will invite increases in manufacturing costs.
	Impacts of scenario analysis results on business strategy: The results of the scenario analysis are used in the evaluation of climate change’s impacts on the 糖心原创vlog Group’s business strategies. The 糖心原创vlog Group’s Global Vision 2030 depicts a vision in which we help to solve issues in global society through our unique activities, and further enhance our reason for existence in global society as we head toward 2030. Reducing CO2 emissions is a core element in addressing material social issues under Global Vision 2030. Accordingly, the results of the scenario analysis are reflected in the 糖心原创vlog Group’s measures to reduce CO2 emissions by FY2031. The 糖心原创vlog Group Long-Term Environmental Vision aimed at FY2031 was drawn up in 2020 based on the directions of Global Vision 2030, and is linked to business targets. Our Group aims to reduce CO2 emissions by at least 50% by 2030 compared with levels in FY2019, and is drafting CO2 reduction measures within its business strategy to achieve this. We are considering and implementing many measures to reduce CO2 emissions, including fuel conversion, increased purchase of renewable energy, and facilities upgrades for greater efficiency.

Risk Management for Climate-Related Issues

Risk management process

We have integrated climate change-related risk management into our company-wide risk management process. The company-wide risk management process is led by the Corporate Planning Department of 糖心原创vlog, which conducts comprehensive annual assessments and quarterly evaluations at the Group Management Committee. Based on these evaluations, risks that could affect our Group’s performance and financial position are disclosed as “Risks Related to Business, etc.” in the securities report.

Risk and opportunity assessment

We identify risk events that affect our business not only in direct operations but also upstream and downstream in the value chain, and we analyze and evaluate their impact levels several times a year from short-, medium-, and long-term perspectives.

As a method of identifying and classifying climate-related water risks such as heavy rains and droughts, we make use of in-house knowledge along with evaluation tools including the Water Risk Filter from the World Wide Fund for Nature (WWF) and Aqueduct from WRI. When evaluation tool findings yield relevant indicators that exceed normal levels, we recognize water risk to be high and supplement our in-house knowledge with the information.

In evaluating risks and opportunities, we define the potential financial impacts of climate change and the impacts on market capitalization as significant. When risks of manufacturing facilities stoppages in major businesses present strategic impacts, we deem those to be risks with significant impact.

Metrics and Targets

The Paris Agreement, adopted in 2015 at the Conference of the Parties (COP21) to the United Nations Framework Convention on Climate Change, set out, among other things, the objective to keep the increase in global average temperature well below 2°C above pre-industrial levels and to pursue efforts to limit the increase to 1.5°C.

Based on the long-term goals indicated in the Paris Agreement, the 糖心原创vlog Group aims to achieve netzero CO2 emissions by 2050 and has established a policy for working on reducing CO2 emissions. To that end, our Group will advance initiatives to achieve a reduction of 50% or more in CO2 emissions by 2030 compared with FY2019, based on the 糖心原创vlog Group Long-Term Environmental Vision. We will also update our medium- to long-term CO2 emission reduction plans as appropriate in line with future technological innovations.

The 糖心原创vlog Group’s greenhouse gas reduction targets are as follows.

Scope 1+2 To reduce absolute scope 1 and 2 GHG emissions 50.4% by FY2031 from a FY2019 base year.

Scope 3 To reduce absolute scope 3 GHG emissions 30% within the same timeframe.

Last updated: April, 2026