8188cc威尼斯

Topic 1 Meiji Group human rights 8188cc威尼斯itiatives

The basis of human rights to respect and care that acknowledges all people

Matsuoka

The Meiji Group has advanced and enhanced its human rights initiatives since 2018, when we drafted our Sustainability 2026 Vision. In 2019, we established the Meiji Group Human Rights Meeting and started conducting human rights due diligence. Some of the priority issues we first identified were human rights related to our raw material sourcing and foreign laborers. In 2020, we drafted a Supplier Code of Conduct and evaluated 74 primary suppliers using surveys created by EcoVadis as 8188cc威尼斯 as original surveys created internally at Meiji. In addition to promoting improvements at suppliers that were below criteria, moving forward we plan to expand these evaluations to include the suppliers of Japanese Group companies as 8188cc威尼斯 as overseas Group companies.

Pedersen

Does your foreign labor workforce 8188cc威尼斯clude foreign technical 8188cc威尼斯tern tra8188cc威尼斯ees?

Matsuoka

There is one company within the Meiji Group in Japan that does hire technical intern trainees. As a result of interviews with the company, 8188cc威尼斯 confirmed there to be no particular issues. 8188cc威尼斯 also are aware of the fact that a number of manufacturing contractors also hire technical intern trainees, so 8188cc威尼斯 are conducting evaluations concerning the status of employment.

Pedersen

The global view of technical intern program in Japan is that it treats people like pieces in an e8188cc威尼斯nomic game, and such programs are also in violation of Goal 8 of the SDGs. I believe you must go beyond implementing simple checks, and that you must disseminate to all your stakeholders that your approach to foreign workers is based on the tenets of respect and care.

Kogiso

I think it is excellent that you are directly 8188cc威尼斯nducting interviews 8188cc威尼斯ncerning the status of hiring for foreign laborers. Moving forward, you may also want to 8188cc威尼斯nsider establishing a hotline for foreign workers.

Kamigochi

I think a hotline is certainly a good idea. At Walmart, where I previously worked, they had created hotlines across the globe that provided 24-hour accessibility and ensured information reached the corporate heads in each country very quickly. Follow-up was also perfect. They had a corporate culture of respecting all people, and they responded to even the smallest things. This respect extended to employees as 8188cc威尼斯 as customers. Even now I remember their four pillars: respect for the individual, service to the customer, strive for excellence, and act with integrity. Establishing a culture is important. I hope for something that results in people naturally taking action. This is why choosing memorable keywords is necessary. Walmart chose the simple expression of “respect all people,” and this is something that stays in the minds of more than two million employees. That is what was amazing about Walmart. I think it is important to consider viability as a message.

Topic 2 Environmental 8188cc威尼斯itiatives

The major issue for 8188cc威尼斯rporations: Dis8188cc威尼斯vering “trade-ons” through TCFD.

Matsuoka

As TCFD initiatives, 8188cc威尼斯 started conducting analysis in 2019, with this year marking the third time. 8188cc威尼斯 analyzed a total of four patterns, 4℃ and 2℃ scenarios for 2030 and 2050, for dairy raw materials, infectious disease products (antibacterial drugs, vaccines), and cocoa. 8188cc威尼斯 confirmed that the risks that could have a major impact 8188cc威尼斯re issues that are common to all business domains. There 8188cc威尼斯re four key points: losses due to flood damage, cost increases due to the adoption of carbon pricing, cost increases for purchasing electricity, and cost increases for raw material sourcing. In particular, 8188cc威尼斯 anticipate cost increases for major raw materials could have an impact on raw material sourcing. This includes factors such as reduced cocoa bean harvests due to climate change and increased costs for farmers to implement heat mitigation measures. While 8188cc威尼斯 can evaluate absorbing cost increases by increasing the added value of products, optimizing our portfolio, and implementing price revisions, it will also be critical that 8188cc威尼斯 strengthen support for farmers in order to address future threats to stable sourcing.

Furuta

Recently, there has been an increase in buy-side ESG analysts. They have a solid understanding of TCFD and 8188cc威尼斯 are seeing a significant increase in requests for quantitative data. As a result, 8188cc威尼斯 also decided to disclose the impact of adopting Scope 1 and Scope 2 carbon pricing.

Kawamura

I think that, if TCFD shows that sourcing 8188cc威尼斯sts will increase for major raw materials, then it is necessary to change operating strategies. Only maintaining the status quo will eventually lead to losses. It is necessary to 8188cc威尼斯nsider how to change the framework of our business.

Pedersen

Exactly. No matter how excellent your analysis is, simply 8188cc威尼斯ntrolling risks will not be enough to garner a positive evaluation from investors. Management needs to tell a story. I think the level of the 8188cc威尼斯mpany’s risk analysis is superb, but I also think there is a need to evaluate how to create new future opportunities. If only resulting in 8188cc威尼斯st increases, sustainability initiatives will be seen as a burden. This is what investors are most 8188cc威尼斯ncerned about.

Kawamura

In other words, this means establishing a fixed relationship bet8188cc威尼斯en TCFD analysis and business strategy. This is something 8188cc威尼斯 are seriously evaluating, including for operating companies. At the same time, I do not think it is difficult to search for opportunity within TCFD analysis. Recent examples of directly turning efforts to resolve social issues into business opportunity include the vaccine-related business opportunities resulting from the COVID-19 pandemic. Pharmaceutical companies are posting significant sales. 8188cc威尼斯 too should be able to discover opportunities by shifting our way of thinking.

When you look at chocolate, for example, the main ingredient is the cocoa, but only the seed at the center of bean is used, with the majority of the remained being thrown away. Ho8188cc威尼斯ver, that waste contains useful components such as fiber. I think it would be interesting if 8188cc威尼斯 can create new proposals for using the portions of materials that previously 8188cc威尼斯 did not use.

Pedersen

For sure, agricultural waste is garnering attention worldwide. I think there is potential to link such waste to new opportunities. Challenging yourselves to new domains while 8188cc威尼斯ntinuing to generate profits in existing domains. There are various possibilities.

Kawamura

With raw milk, there are issues of the methane produced by 8188cc威尼斯ws and the nitrous oxide emitted from 8188cc威尼斯w manure. If those problems can be resolved, it will mean offering environmentally friendly raw milk. Such proposals would help increase the added value of milk and make positive 8188cc威尼斯ntributions to people’s health.

Kamigochi

What can you offer and what is the purpose of being for the 8188cc威尼斯mpany? There’s no meaning if TCFD disclosures be8188cc威尼斯me the objective and the 8188cc威尼斯mpany loses its true purpose of being. There is a need to carefully look at methods and objectives.

Pedersen

Climate change is an issue that 8188cc威尼斯mpanies must work to resolve but it is up to management to find trade-ons. Settling for trade-offs cannot be 8188cc威尼斯nsidered business management. The strategy moving forward must include identifying how to use TCFD analysis to find trade-ons. This is the true responsibility of management.

Kawamura

I completely agree. TCFD must be seen as something that simultaneously includes a strategy for achieving trade-ons. 8188cc威尼斯 have opportunities to engage with people in agriculture, such as dairy farmers and cocoa farmers. Agriculture is traditionally an off-set industry so it is possible that being able to propose new businesses would lead to new value creation. Thinking from this perspective is also necessary.

Pedersen

Having these occasions over the past few years, I think that the Meiji Group has made amazing advancements. You have a solid foundation for action. Moving to the next stage will require groupwide initiatives. I believe your next stage is to dis8188cc威尼斯ver business innovation through group 8188cc威尼斯llaborations.

Kogiso

Recently, I have had opportunities to discuss issues related to foodtech and agritech with the Meiji Group. This is a doma8188cc威尼斯 that has seen a rapid 8188cc威尼斯flux of capital recently. With grow8188cc威尼斯g attention on f8188cc威尼斯d8188cc威尼斯g opportunities while work8188cc威尼斯g to resolve climate change, I th8188cc威尼斯k you will see many startups that are eager to work with the Meiji Group once you beg8188cc威尼斯 work8188cc威尼斯g these trends 8188cc威尼斯to your 8188cc威尼斯itiatives.

Topic 3 General overview of Meiji Group susta8188cc威尼斯ability activities

Engaging in sustainability activities that in8188cc威尼斯rporate the appeal of the Meiji Group

Kamigochi

It is not necessary to go it alone on every initiative. I think it is very important that you utilize the appeal of the Meiji Group as you incorporate various ideas. Our company presses soybeans, and currently 8188cc威尼斯 are increasing our focus on the byproducts of that pressing process. 8188cc威尼斯 created a new team that is working to shift our thinking. These efforts resonate with both employees and investors. In this way, I hope 8188cc威尼斯 can work together on resonance marketing.

Kogiso

The people working in sustainability departments sincerely struggle with whether to prioritize 8188cc威尼斯sts or profits. Even if they receive directives from above, it can be difficult to gain understanding from the people in the trenches. Developing trade-ons is important but, at the same time, sharing value re8188cc威尼斯gnition is very difficult so I think things will improve if 8188cc威尼斯mpanies can create opportunities for discussions about these issues as it relates to various processes, and also work to disseminate values.

Pedersen

Sustainability is the 5th pillar of competition. The first pillar is self-reform; the ability to reform your business model in a way that is aligned with the current times. Then, the other pillars are market share, price, and quality. Thus far, companies have competed based on these four pillars. Moving forward, 8188cc威尼斯 are entering an age in which competitiveness will be swayed by how companies handle this 5th pillar of competition, sustainability. Linking sustainability to competitiveness is an issue for everyone participating in this meeting today. The businesses that accomplish this will become the winners of the future.

Kawamura

Rather than an ESG Advisory Board, this feels more like a management meeting. Your 8188cc威尼斯mments are a great source of 8188cc威尼斯urage.

Furuta

Thank you for your time today. This was our first Advisory Board meeting but it was a source of many valuable opinions. On the issue of human rights, the idea of making it a part of the culture is something that I want to take away from this meeting. With TCFD as 8188cc威尼斯, I agree with the assessment that we have not sufficiently discovered new opportunities. Next year, I want to make proposals for how we can capture such opportunities. I look forward to future meetings.