Response to ESG

Basic Stance

In driving CSR initiatives through its core business operations as part of activities based on its management principle of“ Always Putting the Customer First,” the ITO EN Group utilizes the ISO26000 international standard as a compass, and has established seven key themes in line with the standard’s core subjects: organizational governance, human rights, labor practices, the environment, fair operating practices, consumer issues, and community involvement and development.

The correspondent relationship between these seven score subjects and ESG issues is roughly as shown in the figure on the left-hand side below. Essentially, the central“ organizational governance” portion corresponds to G (governance).
The “environment” portion corresponds to E (environment), and the remaining five areas correspond to S (social).

The material ESG issues shown on the right-hand page (entitled “Major ITO EN targets (KPIs) and material ESG issues”) were identified in accordance with the opinions of stakeholders, based on the“ seven core subjects and issues associated with them” as shown on the right-hand side below.

ISO 26000 the seven core subjects and issues associated with them

  • Environment
  • Social
  • Governance
  • 1.Organizational governance

  • 2.Human rights

    1. Due diligence
    2. Human rights risk situations
    3. Avoidance of complicity
    4. Resolving grievances
    5. Discrimination and vulnerable groups
    6. Civil and political rights
    7. Economic, social and cultural rights
    8. Fundamental principles and rights at work
  • 3.Labor practices

    1. Employment and employment relationships
    2. Conditions of work and social protection
    3. Social dialogue
    4. Health and safety at work
    5. Human development and training in the workplace
  • 4.The environment

    1. Prevention of pollution
    2. Sustainable resource use
    3. Climate change mitigation and adaptation
    4. Protection of the environment, biodiversity and restoration of natural habitats
  • 5.Fair operating practices

    1. Anti-corruption
    2. Responsible political involvement
    3. Fair competition
    4. Promoting social responsibility in the value chain
    5. Respect for property rights
  • 6.Consumer issues

    1. Fair marketing, factual and unbiased information and fair contractual practices
    2. Protecting consumers’ health and safety
    3. Sustainable consumption
    4. Consumer service, support, and complaint and dispute resolution
    5. Consumer data protection and privacy
    6. Access to essential services
    7. Education and awareness
  • 7.Community involvement and development

    1. Community involvement
    2. Education and culture
    3. Employment creation and skills development
    4. Technology development and access
    5. Wealth and income creation
    6. Health
    7. Social investment

Source: ISO26000 2010 Guidance on Social Responsibility

Major targets for ITO EN (KPIs) and material ESG issues

Governance
Seven core subjects Material ESG issues Major targets for ITO EN (KPIs) Major related SDGs
Organizational governance Corporate governance Corporate governance
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Internal control
Sustainability management (management of the CSR and SDGs Basic Promotion Policies and their penetration throughout the company)
Holding stakeholder dialogues
IR activities (communicating with shareholders)
Risk management Holding risk-related committees in response to changes in social situations
BCP management
Data security and protection of privacy
Compliance Full enforcement of compliance and adherence to ethical norms
Social
Fair operating practices Adherence to fair trade Compliance with trade-related laws and regulations and their penetration throughout the company
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Supply chain management Procurement of raw materials and supply chain management (supply chain management based on the ITO EN Group Quality Control Policy/Procurement Policy)
Human rights Respect for human rights Respect for human rights
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Development and facilitation of a promotion system for human rights educational activities and the provision of education on harassment
Labor practices Personnel affairs and welfare program Response to the revised work style reform system
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Utilization of the welfare program and the next-generation development support system
Health and safety of employees Strengthening of efforts to reduce work hours and promote the acquisition of paid leave
Development of a safe working environment
Human resources development Acquisition of human resources, prevention of resignations, and human resources development
Development of ITO EN Tea Taster qualification holders
Diversity Promoting diversity, equality in the working environment, and active roles of women
Enhancement of the system for employing and supporting persons with disabilities
Consumer issues(●) Quality and safety of products Toughening of quality control
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Ensuring product safety
Promoting efforts to introduce JGAP
Promotion of health value (health and nutrients) Health-related studies
Development and enhancement of food and beverages that contribute to health
Patent and trademark strategy
Product packaging and appropriate information disclosure Development of eco-friendly containers
Appropriate product information disclosure
Affordability of products Utilization of sales networks by sales channel and strengthening of retailers (enhancement of points of contact with customers by using tea)
Fair marketing and advertising Fair marketing and advertising
Protection of personal information Data security and protection of privacy (reiteration)
Community involvement and development(●) Community and human rights issues Promotion of vending machines that make a contribution to human rights issues (vending machines to make Ogyaa Donations and support victims of crime, etc.)
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Community and community activities Implementation of regional revitalization activities in accordance with the ITO EN Basic Policy for Promotion of the Development of Communities, Human Resources and Jobs
Participation in and development of activities for cultural programs
Utilization of the ITO EN Tea Taster business skill test certification (programs for the promotion of tea culture)
Strengthening of relationships with local communities
Community and industrial development Increasing annual production volume of the Tea-Producing Region Development Project (new tea plantation business)
Strengthening of collaboration with agricultural production corporations
Community and the environment and culture Engaging in activities under the “Making Japan Beautiful Through Tea” Project
Earthquake reconstruction assistance for communities Continuation of assistance to earthquake-affected areas and strengthening of relationships with afflicted municipalities
Environmental
The environment(●) Climate change and prevention of air pollution Reduction of greenhouse gas emissions and CO2 emissions of all companies
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Increasing the percentage of heat pump vending machines
Improvement of fuel consumption of vehicles
Promotion of energy savings Reduction of power usage of all companies
Management of energy at the time of production and reduction of energy consumed by beverage manufacturing plants
Management of energy at the time of transportation, improvement of the block production ratio, and modal shift
Conservation of biodiversity Monitoring in the Tea-Producing Region Development Project
Water management Management of water consumption and wastewater at the time of production (enhancement of information gathering on water usage at our plants and the plants of outsourcing partners)
Waste and recycling Management of waste and improvement of the recycling rate for food products
Promoting the recycling of used tea leaves

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*Core subjects marked with a (●)are key themes for ITO EN.

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