Material Issues

Visualize the contribution to well-being by materials (green tea, matcha, coffee, etc.) by deepening research on industry-government-academia collaboration.

• Conduct joint research projects with universities and research institutions 3 projects per year
• Publication of peer-reviewed articles on health functionality 3 papers per year

Dissemination of domestic and overseas research results and promotion of efforts toward social implementation

• Disseminate information through Wellness Forums, etc. At least 2 times a year
• Collaborate with local governments to solve health issues and promote food culture awareness 3 per year
• Reporting on the results of activities in collaboration with local governments Once per year

Expanding the taste and healthiness of unsweetened tea and unsweetened products derived from ingredients as a new value and new beverage option overseas

• Oi Ocha overseas sales volume
  Average annual growth rate 24% or more (FY2024-FY2028)
• Development and implementation of overseas tea culture awareness programs (training of ITO EN Tea Tasters who can work overseas, etc.)

Promoting social connections through nutrition education activities, production area experiences, coffee, etc.

• Number of contacts with customers through nutrition education activities to pass on tea culture and revitalize the tea market
  400,000 people per year (including seminars for elementary and junior high school students)
• Tully’s Coffee Japan：Continue to implement the Community Cafe Award and Tully's Coffee School to pursue the 5 best and to become a community café rooted in the local community, while providing the value of the experience through a cup of coffee.

The Tea-Producing Region Development Project expansion of development area

• FY2030 2,800ha

Promotion of sustainable agriculture such as reduced use of pesticides and organic farming and increased production of overseas standard raw ingredients

• Promoting Sustainable Agriculture
• Supply of raw materials (green tea and powdered green tea) for overseas use 200% improvement in FY2028 (300% improvement for powdered green tea)　 vs. FY2024

Expansion of overseas local production through evolution of technology and know-how

• Establishment of crude tea raw ingredient production technology in overseas tea production areas

Sustainable sourcing of raw materials (tea leaves, coffee, vegetable juices)

• Maintain 100% GAP certification in “The Tea-Producing Region Development Project” and respond to globalization
• Establish responsible and sustainable sourcing by pursuing second-party certification from international organizations related to coffee sustainability
• Maintain 100% tracing of green tea raw ingredients and deepen tracing of other raw ingredients

Obtained international food safety certification for domestic manufacturing plants (beverage and leaf)

• Factory audit implementation rate 100%
• 100% acquisition rate of international food safety certifications

Thorough quality and safety management at overseas manufacturing plants that are certified internationally or equivalent to international certification.

• 100% of overseas manufacturing plants (beverage, leaf) have been audited in accordance with international food safety certifications

Conduct supplier evaluations in response to changes in the environment (domestic and overseas)

Continue to hold domestic quality meetings, hold global quality meetings

• At least 7 times a year

Holding “environmental quality meetings” with contract manufacturing factories

• At least once a year

Improving logistics efficiency

• Improved loading per vehicle
  Beverage 10.4t or more, Leaf 12.6m3 or more
• Reduction of more than 20,000 work hours of outsourced logistics by promotion of regular pallet trade * vs. FY2023

Promote modal shift and strengthen transportation and delivery capabilities through the use of railroads and ferries

• Reduce crew working hours by 400 hours or more
• CO2 emissions (JR Freight) by 25t-CO2 or more vs. FY2023

Expansion of other cooperative businesses

• Reduction in the number of trucks used and CO2 emissions through heavy/light consolidation and round transportation and delivery

GHG emission reduction rate
(base year: FY2018)*1

• FY2030 Scope 1, 2 50% reduction Scope 3 30% reduction
• FY2050 Net zero

Use of renewable energy*1

• Company-wide renewable energy ratio FY2030: 75%

Electric vehicles: EVs, HVs, PHVs, and FCVs with hydrogen*1

• Electric vehicles: 25% by FY2030

Percentage ratio of recycled materials used for all PET bottle products

• FY2030: 100%（All PET bottled products）

Promote 3Rs　(Recycle, Reduce, Replace & Reuse) in packaging, sales promotion materials, and materials, and switch to environmentally friendly materials

Reduction water use consumption during beverage production

• Water consumption per unit of production: 3.0 m3/kl or less by FY2030
  *Basic unit: water consumption per kl of production
  *Dedicated in-house production lines at our own and partner factories

Implementation of water source conservation activities at beverage manufacturing factory.

• Water source recharge rate relative to water intake at each plant: 100% or more by FY2030
  *Some of our own and cooperative plants

Study of global indicators based on TNFD recommendations and promotion of sustainable agriculture

Improvement of food recycling rate

• ITO EN to maintain at least 90%
• Tully's Coffee Japan 60% in FY2030

Effective use of tea, barley and coffee grounds

• Market products utilizing tea, barley, and coffee grounds dregs
  At least 10 cases per year

Tully’s Coffee Japan　Promoting waste reduction

• Promote use of in-store mugs and glasses
• Test introduction of reusable cup system
• Promoting the use of tumblers

Reduce use of plastics derived from fossil fuels

• ITO EN：Reduction in vending machine dummy plastic use FY2028 50% reduction (vs. FY2018)
• Tully’s Coffee Japan：Promotion of switching to paper cups for iced drinks provided in plastic cups, and weight reduction of plastic bags containing 25% biomass

Co-creation with stakeholders on food and health (obesity, overweight, nutritional balance, etc.) and social and environmental issues

• Understand social and environmental issues through dialogue with stakeholders in countries and regions where we operate overseas
• Develop and implement a plan for problem-solving initiatives

Dissemination of research results and promotion of social implementation initiatives aimed at solving health issues in local communities

• Collaborate with local governments to solve health issues and promote food culture awareness 3 per year
• Reporting on the results of activities in collaboration with local governments Once per year
  *Partial restatement of initiatives and KPIs for material issues“Achieving Well-being through Eating Habits”

Collaboration with local governments and stakeholders in each region, including Green Tea for Good “Make the World Beautiful with Tea”

• Conduct conservation activities, including forest, water, and biodiversity Environmental action target: 2,500 participants per year

Understand (identify and assess) human rights risks that may cause or contribute to human rights violations through ITO EN Group's businesses and services, and formulate a human rights due diligence plan by FY2025.

Conduct human rights assessments of suppliers

Conduct human rights due diligence at raw material production areas and production sites

• At least 5 times by FY2028

Disseminate and expand the scope of the grievance mechanism
Priority targets: Suppliers and employees over whom the ITO EN Group can exercise influence

Conduct internal human rights awareness training

• At least 3 times a year

Review and formulate key themes and KPIs by examining the human capital strategy linked to the management strategy during FY2025 (to be disclosed in FY2026)
The following is a list of current themes and KPIs to be addressed

Employee engagement score

• FY2026: 4.2 or higher (out of 6 points)

Female manager ratio

• FY2026: 10%

Gender pay gap (regular full-time employees, male employees = 100)

• FY2026: 80%
  Of the above, less than 10 years of service 100%

Percentage of male employees taking childcare leave

• FY2026: 50%

Maintain Health and Productivity Management Organization (White 500) certification

Develop the next generation of management personnel (directors, executive officers, and managers)

Development of training plans for managers and CXOs of major ITO EN Group companies

Promoting efforts to nurture the younger generation with a view to future management personnel

Identification of management risks and consideration of countermeasures

Forecast the future, identify business opportunities, and review strategies

Establishment of information security governance structure

• Enhance understanding among board members and employees of the use and risks of information technology and DX

Conduct stakeholder dialogues to improve management

• At least once a year