Materiality

The business environment surrounding the Company contains a diverse array of social issues, including environmental issues, such as climate change and resource depletion, as well as labor and human rights issues in the supply chain. To continue business activities in the future, we think the management issues that need to be addressed should be clarified by identifying and evaluating the impacts on our corporate activities based on these various social issues. Accordingly, we have identified our priority issues in terms of two aspects: importance to stakeholders and importance to our businesses. By prioritizing these issues in the allocation of our internal resources, we aim to provide value to stakeholders and achieve medium- to long-term growth, while avoiding management risks and seizing opportunities to realize innovation.

Materiality Identification Process

  1. Step1
    Organize social issues
    • List social issues making reference to the SDGs and other frameworks
    • Identify the social issues relevant to the Calbee Group
  2. Step2
    Create a materiality map
    • Evaluate the importance of said social issues and create a materiality map
    • Make a materiality proposal based on the materiality map
  3. Step3
    Verify suitability
    • Hold workshops to incorporate internal opinions
    • Carry out interviews with external experts
  4. Step4
    Final identification of materiality
    • Perform final identification of materiality based on internal and expert opinions

Materiality Map

Importance to Calbee’s businesses
Importance to stakeholders
  • 1Assurance of food safety
  • 2Respond to lifestyle changes
  • 3Progress of sustainable agriculture
  • 4Stably procure raw materials
  • 5Realize decarbonization of society
  • 5Promote resource recycling
  • 5Preserve the ecosystem
  • 27Maintain and promote health
  • 6Foster deeper connections with people, local societies, and communities
  • 8Strengthen business continuity plan (BCP)
  • 8Ensure information security
  • 1Solve consumer issues
  • 4Increase supply chain management efficiency and ensure stable logistics
  • 7Employ and develop diverse human resources
  • 5Prevent pollution and consider the environment
  • 7Create good work environments
  • 78Respect human rights
  • 8Establish fair business practices
  • 2Respond to diversification of food needs
  • 8Build appropriate governance systems

Sustainability Management Promotion Framework

In December 2019, we established a Sustainability Committee including an external expert as advisor. The Sustainability Committee determines the Calbee Group’s materiality, discusses and reviews the roadmap for the priority themes promoted by the subcommittees, and reviews the status of progress on them. The results of these activities are regularly reported to the Board of Directors.

Board of Directors

Report

Sustainability Committee

Theme identification and monitoring

Strategy determination and progress reports

Subcommittees for each priority theme (promote strategy execution)

Priority Themes and Major Measures Based on Materiality

Category Materiality Priority themes and major measures Targets (KPIs) FY2021/3 results Correspondence with the SDGs
Contributions through products 1 Assurance of food safety
  • Prevention and monitoring for safety and quality
  • Initiatives for security
  • Product improvements reflecting customer feedback
- - 3. GOOD HEALTH AND WELL-BEING 12. RESPONSIBLE CONSUMPTION & PRODUCTION
2 Response to health conscious and diversifying lifestyles Provision of health-conscious products
  • Gradually reduce amount of salt in products
  • Expand sales ratio of protein-rich products
FY2024/3
  • Amount of salt equivalent in products sold*1
    20% reduction(vs.FY2019/3)
  • Sales ratio of protein-rich products*2
    10%
  • Amount of salt equivalent in products sold 5.4% reduction
  • Sales ratio of protein-rich products 4.8%
2. ZERO HUNGER 3. GOOD HEALTH AND WELL-BEING
Contributions through the supply chain 3 Progress of sustainable agriculture
4 Ensuring the sustainability of raw materials and logistics with improved efficiency
Sustainable, environmentally conscious procurement: Stable procurement of potatoes
  • Promote development of potato varieties and scientific cultivation
  • Reduce agricultural labor
  • Disperse production areas and diversify suppliers
FY2024/3
  • Domestic procurement volume of potatoes
    400,000 tons (up 20% vs. FY2019/3)
  • Domestic procurement volume of potatoes 342,000 tons
2. ZERO HUNGER 8. DECENT WORK AND ECONOMIC GROWTH 9. INDUSTRY, INNOVATION AND INFRASTRUCTURE 12. RESPONSIBLE CONSUMPTION & PRODUCTION
Sustainable, environmentally conscious procurement:
Use of certified palm oil
  • Bidding for and purchasing credits through Book & Claim (B&C)
  • Promote initiatives to encourage use of Mass Balance Certification Mark
CY2030
  • 100% use of certified palm oil
  • May 2020: Purchasing credits through Book & Claim (B&C)
  • July 2021: Began purchase of Mass Balance certified palm oil
Contribution to the global environment and local communities 5 Caring for the earth Reduction of greenhouse gas emissions
  • Reduce Scope 1 and Scope 2 emissions
    Switch electricity suppliers, energy-saving activities, on-site generation at plants, etc.
  • Reduce Scope 3 emissions
    Change carton sizes, reduce delivery frequency, improve loading efficiency
CY2030
  • Total greenhouse gas emissions:
    30% reduction (vs. FY2019/3)
Total greenhouse gas emissions 0.6% increase
  • Scope1:2.3% reduction
  • Scope2:17.3% reduction
  • Scope3:4.7% increase
7. AFFORDABLE AND CLEAN ENERGY 12. RESPONSIBLE CONSUMPTION & PRODUCTION 13. CLIMATE ACTION 14. LIFE BELOW WATER 15. LIFE ON LAND
Protection of resources and realization of a recycling society
  • Reduce product food losses
  • Reduce water consumption
  • Promote 3Rs
FY2024/3
  • Product food loss 20% reduction (vs. FY2019/3)
CY2030
  • Total water consumption 10% reduction (vs. FY2019/3)
  • Total waste generated 10% reduction (vs. FY2019/3)
  • Product food loss 74% increase
  • Total water consumption 6.5% increase
  • Waste reduction amount 4.3% reduction
Replacement and reduction of plastic package
  • Reduce petroleum-based plastic package
  • Switch to alternative materials and promote recycling
CY2030
  • Environmentally considerate material use 50%
CY2050
  • Environmentally considerate material use 100%
Capital participation in R Plus Japan, Ltd.
6 Foster deeper connections with people, local societies, and communities Invigoration of food communications
  • Expand Calbee Snack School (food education)
  • Invigorate and promote factory tours
FY2024/3
  • Food communications Number of participants*3
    400,000 (5 years cumulative)
Food communications
  • 107,714 participants
8. DECENT WORK AND ECONOMIC GROWTH 12. RESPONSIBLE CONSUMPTION & PRODUCTION
Contributions to local societies
  • Expand activities in the environmental domain
  • Strengthen activities in the health domain
- -
Establishment of management base 7 Promote active roles for all employees based on diversity Promote diversity and inclusion
Strengthening of human resource development
Workstyle transformation
FY2024/3
  • Ratio of female managers Over 30%
  • Ratio of male employees taking childcare leave 100%
  • Rate of employment of people with disabilities 2.5%
  • Ratio of female managers 21.8%(As of April 2021)
  • Ratio of male employees taking childcare leave 26.5%
  • Rate of employment of people with disabilities 2.58%
3. GOOD HEALTH AND WELL-BEING 5. GENDER EQUALITY 8. DECENT WORK AND ECONOMIC GROWTH 9. INDUSTRY, INNOVATION AND INFRASTRUCTURE 10. REDUCED INEQUALITIES
8 Enhance corporate governance Establishment of corporate governance organizations and frameworks
Bolster compliance and risk management
Respect for human rights of stakeholders
- - 8. DECENT WORK AND ECONOMIC GROWTH 9. INDUSTRY, INNOVATION AND INFRASTRUCTURE 10. REDUCED INEQUALITIES
  • Product food loss reduction targets and results are for domestic Calbee Group companies excluding Potato Kaitsuka Ltd. Targets and results for reduction of greenhouses gases are for factories operated by Calbee, Inc., and Obihiro factory of Calbee Potato, Inc. All other indices are for Calbee Inc.
  • *1 Salt content of all products sold as a percentage of the total weight of products sold
  • *2 13% or more of total energy consumption accounts for protein
  • *3 Food education activities such as Calbee Snack School and factory tours

Comments from Experts in Identifying Materiality

In order to verify the appropriateness of our materiality from external perspectives, we carried out interviews with three experts based on their expertise. We have finally identified the materiality in consideration of their opinions.

Makiko Akabane
Director Japan, CSR Asia

At present, “Access to Nutrition” is a social issue that is frequently discussed in global food companies.

There are two issues: excessive nutrition causes increases in obesity and adult illness, and the difficulty of accessing nutritious foods causes poor nutrition.

Calbee Group's materiality includes "Response to health conscious and diversifying lifestyles." I think highly of this in terms of the materiality based on Calbee Group's business contributions. The Calbee Group inherit their founding philosophy of offering safe products that benefit health by leveraging the quality of food resources. I believe this materiality leads to resolve the social issue of "Access to Nutrition," which is attracting increasing global attention.

I expect that Calbee will continue to work proactively to resolve social issues in their own ways while expanding their overseas business.

Minako Oishi
Vice Chairperson, NIPPON ASSOCIATION OF CONSUMER SPECIALISTS

Sustainable product selection begins with knowing the life of a product, from raw material procurement to manufacturing, distribution, disposal, and recycling.

There is a steadily increasing number of consumers who want to select products from an environmental and ethical perspective, such as what types of energy manufacturer use and whether manufacturer protect working environment throughout the supply chain.

In Calbee Group's business activities, consumers are increasingly interested in procuring certified palm oil, using renewable energy, and reducing the use of plastic containers.

To eat is to live, so it is the basis of body and spiritual richness.

In this sense, I feel that Calbee Group is always in close to us, consumers and has responded to the needs of the times.

I expect that the Calbee Group take the initiative in addressing environmental and social issues throughout the supply chain. At the same time, we will proactively communicate the thought of "life of products" and deepen communication with consumers in order to create a sustainable food future together.

Mariko Kawaguchi
Professor, Rikkyo University

I believe the identification of "Progress of sustainable agriculture" as a materiality is considered to be the foundation of Calbee Group's future management, a company that values the gift of nature and the power of nature.

While agriculture is significantly affected by climate change and biodiversity, greenhouse gas emissions and land transformation have a major impact on the global environment.

In considering food sustainability, food loss reduction, which is estimated to be 30% of food consumption, is an urgent issue.

Going forward, I expect that Calbee will accelerate their efforts for food ross reduction.

In correspond to the COVID-19 pandemic, we need to consider not only BCPs (Business Continuity Plans/ Business Continuity Plan) based on the current business environment, but also the possibility of further significant changes in the business environment and social importance surrounding the company, such as changes in people's work style, health awareness and purchasing preferences.

At a time when the medium-to long-term impact of the COVID-19 pandemic will be visible, it would be better to reexamine the materiality and the priority themes.