Itoham Yonekyu Holdings Inc

The company does not have a science-based emission reduction target but anticipates setting one in the coming two years. It has a target to reduce methane emissions from cattle production by 10%.

The company has set a target to halve greenhouse gas emissions by FY2030 with 2016 as the base year and achieve net zero by FY2050 for all group companies. The ANZCO overseas division has set a target to reduce its Scope 1 and Scope 2 emissions by 25% by 2030 from a 2020 base year across its New Zealand sites. It does not disclose emissions-related targets for Scope 3.

The company mentions that it sources cattle from suppliers and will develop plans to reach its emission reduction goals in the coming reporting periods. However, there is currently no disclosure.

The company does not engage in innovative projects to reduce or mitigate emissions from feed farming

The company discloses that it has started an initiative to lower greenhouse gas emissions by experimenting with giving cattle a feed additive Luminup, made from cashew nutshell liquid to reduce methane gas in their burps. These cashews are fed to some Japanese Black cattle raised at Mirai Farm, a cooperative farm. It aims to reduce methane emissions by 10% using this method. However, it also mentions that the current achievement rate is 0%.

The company reports 210,273 tCO2 Scope 1 emissions, 160,605 tCO2 Scope 2 emissions, and 6,952 2 tCO2 Scope 3 emissions in the reporting year.

The company's ANZCO overseas division reports Scope 1 biogenic emissions of 28,595 TCO2 in the current reporting period. However, company-wide emissions from animal farming are not disclosed.

The company has responded to CDP Climate Change 2022. The emission data is not audited by a third party.

The company reports a 5% increase in total GHG emissions from 6,967.8 tCO2 in 2020 to 7,323.1 tCO2 in 2021.

The company conducted a climate-related scenario analysis and disclosed transitional and physical climate risks. It concludes that meat and processed meat products account for more than 90% of the sales, and its unavailability could lead to a decline in sales. Therefore, it promotes the sale of non-meat products such as plant-based meat.

The company discusses that due to global warming, natural disasters are expected to become more severe, affecting the production of corn, wheat, soybean pomace, etc. These events are expected to impact the company and decrease sales financially. To mitigate such risk, it plans to work with meat suppliers to develop feed crops adapted to an unstable climate, spread cultivation systems, and research and develop alternative materials. The ANZCO division reports the monthly average temperature of New Zealand in 2020 and states that it remains calm all year around. Therefore, there is little to no risk of heat stress to cattle in New Zealand. However, it does not discuss the impact of heat stress in other areas of its operations. It mentions that energy cost is one of the corporate risks. However, it does not explicitly address increased energy costs. It discusses that carbon taxes pose a risk to the company through increased indirect costs.

The company does not disclose its commitment to align capital expenditures with its GHG targets.

The company does not directly engage in the consignment of cattle but states that cattle consignment agreements are carried out with domestic farmers through cooperative farms. The contract farmers of these cooperative farms are not involved in land conversion or deforestation. The company also discloses that it engages in cattle production (fattening business) at ANZCO in New Zealand, and there is no deforestation or land conversion on ANZCO feed lots and rangelands.

The company conducted a water-related risk assessment using the WRI Aqueduct, and the results stated that the water risk of facilities in Japan was either 'low' or 'low-medium'. However, the company does not disclose that all its processing facilities only operate in low-water stress areas. Moreover, its Thai office was rated medium to high water risk. The company also reports that three facilities in Japan were affected by disasters and identified as areas exposed to water risks. However, the water usage of these three facilities accounts for less than 1%. The company's total water consumption has been disclosed for the last reporting year.

The company had a target of reducing water consumption by 1% per unit of production by 2022, with 2019 as the baseline year. The company discloses that it has already achieved this target.

The company reports its water withdrawals by source for the last reporting year. It conducted a WRI Aqueduct assessment and found that no operations withdraw water from areas corresponding to "High" or "Very High" water stress areas. The company also discloses water withdrawals by stress area for the last reporting year. The company reported an increase of 1.03% in CAPEX and anticipates a 5% increase in water-related CAPEX due to the planned relocation of production facilities. Its OPEX increased by 1.03% this financial year. The company has responded to CDP Water Security 2022. It reports water consumption and water withdrawal data for the reporting year. The company discloses that water withdrawals were reduced across this period. However, the company does not report water consumption data for the previous year. Therefore, a comparison of its consumption figures cannot be made.

The company refers to water use in its sustainable procurement policy.

The company discloses that it is investigating a feed additive made from cashew nutshell liquid to lower methane emissions. However, the company does not disclose information relating to investment in sustainable feed supply to mitigate or reduce water scarcity risks.

The company does not disclose the proportion of animal protein commodities produced and/or sourced in water-stressed areas but states that it intends to obtain this data within the next two years. The company states that beef produced in Japan and New Zealand is not procured from water-stressed areas. However, the company does not have the same data for beef imported from the United States, Australia, or Mexico. With regards to processed meats, the company states that these are not procured from water-stressed areas. The company also discloses that it does not have data on water scarcity relating to pork sourced from the United States, Canada, Mexico, and Europe, chicken from Brazil and Thailand, and sheep from Australia. The company states that its ANZCO subsidiary in New Zealand puts an emphasis on water use and optimisation at its factories. However, no further information is disclosed. It states that in the next two years, it will consider engaging with suppliers to provide information on water risks and countermeasures to improve water use.

The company has not established partnerships with third parties to input into sourcing/farming strategy, including water use.

The company had zero penalties related to water quality permits, standards, and regulations. It does not explicitly mention that a water quality risk assessment has been conducted.

The company discloses that it measures the quality of water discharged to meet to legal standards of the area of operation. However, the company does not disclose the quality of the water discharged. It discloses the volume of wastewater discharged in the latest reporting year. The company has responded to CDP Water Security 2022.

The company recycles food waste and converts it into fertilisers. However, it does not discuss converting animal by-products from processing effluents into fertiliser and/or biogas. The company did not report the volume of wastewater discharged in 2021, so a comparison cannot be made.

The company does not address nutrient management in its code of conduct. It does not disclose a requirement for feed suppliers to have a nutrient management plan in place, nor does it provide guidance, support and/or incentives to suppliers/growers on nutrient management/fertiliser use in crop production.

The company mentions that it is exploring the possibility of using its manure to produce feed grain and vegetables that can be used as raw materials for processed products in Japan. However, this does not seem to be currently practised.

The company does not provide a high-level statement on the management of manure.

The company does not make site-specific nutrient management plans a part of its supplier's contractual agreement and/or own farms management. Nor does it provides technical and/or financial support to suppliers and/or own farms to develop nutrient management plans and improve manure storage.

The company states that its sells manure to companies outside of the group. However, it does not mention whether transport is subsidised or if the manure is destined for nutrient-poor areas.

The company fails to disclose any information pertaining to antibiotic usage or policies.

The company does not disclose its usage of antibiotics.

The company commits to the Five Freedoms for animal welfare and integrates this into its animal welfare policy. It also commits to employee training on animal welfare as part of its policy implementation.

The company reports that the Taiyo Pork Co., Ltd. facility offers pigs a comfortable environment with temperature control and has a committee focused on sanitation management. However, it does not commit to avoiding close confinement, lacks a statement on avoiding routine mutilation, and shows no commitment to humane slaughter. Additionally, it offers no disclosure on whether chickens are provided an environment for natural behaviour.

The company emphasises robust internal auditing procedures, which cover animal handling from arrival to slaughter and include internal verifications like maintaining audit records and surveillance cameras. However, it does not hold any certifications from recognised animal welfare farm assurance programmes.

The company does not disclose information in relation to animal welfare certifications or assurance programs for its beef operations.

The company is transitioning from gestational stalls to group-rearing or free-stall systems. However, it does not disclose information on key welfare risks including routine tail docking, surgical castration, and suitable environment, nor any welfare risks in beef.

The company commits in writing to adhere to the Universal Declaration of Human Rights and International Covenants on Human Rights and the International Labor Organization's (ILO) Basic Rights at Work.

The company conducts human rights due diligence surveys in its supply chain to prevent human rights risks. As a result of the 2022 survey, the company did not find any risks that required a follow-up survey on human rights issues. In 2023, it plans to improve supply chain surveys by interviewing foreign intern trainees to understand the working conditions better. The company discloses that it will establish a human rights due diligence system to identify, prevent, and mitigate negative impacts on human rights. However, it does not describe how it currently monitors and reviews respect for human rights and recognises the following action steps in its operations.

In the supply chain human rights survey 2022, no human rights risks were identified. However, the company only conducts surveys rather than a more extensive human rights due diligence process for its supply chain. Furthermore, the company has not yet established a human rights due diligence process for its operations.

The company commits in writing to prohibit discrimination, harassment, child labour, and forced labour in its operations and supply chain. The company also provides a living wage to its employees at ANZCO Foods, an overseas subsidiary. However, a commitment to fair wages does not cover all company operations.

The company conducts a supplier self-check questionnaire to monitor compliance with the groups' policies but does not mention conducting audits. The company has established an internally and externally run grievance mechanism for employees to report non-compliance issues. The company also has an external point of contact to receive supplier complaints. However, the company does not state that its mechanisms allow for anonymity.

The company commits in writing to create a safe work environment but does not mention holding a health and safety certification. The company also says it is moving forward with establishing Health and Safety Committees in each office regarding preventing work accidents. However, it is still being determined whether these committees are in place. Furthermore, it does not mention having a health and safety certification. In the ANZCO Foods division, the company has a central health and safety team with on-site representatives and action groups which report to the Board of Directors. However, it does not disclose the percentage of facilities/sites with health and safety committees with worker representatives.

For the company's ANZCO operations, the total recordable rate (TRR) is reported to be 15%, and the lost time injury rate (LTI) is 5.6% for 2022. ANZCO's TRR was also 15% in 2021, and the LTI was 5%. ANZCO Foods also reported an employee turnover rate of 10.3% in 2022. However, the rate is not disaggregated by seniority level.

The company commits in writing to uphold the right to freedom of association across its operations but does not state that it expects suppliers to do the same. ANZCO Foods, a company subsidiary, holds regular meetings with the Meat Workers' Union and union delegates, demonstrating its support of freedom of association. However, actions taken to support rights are limited to the company's ANZCO operations.

ANZCO Foods, a company subsidiary, states that collective bargaining agreements cover 69% of its employees. ANZCO also discloses the distribution of its workforce based on part-time versus full-time employees, temporary versus permanent basis, and management level. However, the company does not report on collective bargaining agreements and contract types for the rest of its operations.

The company reports that 56 factories in Japan and overseas have FSSC 22000, ISO 22000, or other certifications. However, the proportion of sites having FSSC 22000, a GFSI certification, cannot be determined since it reports the combined number of sites with various certifications. Further, it does not disclose whether suppliers are expected to have GFSI certification or the portion that does.

The company discloses it carries out inspections and audits such as for the management of allergens and microbes for safety and for traceability of raw materials to see if products and services meet the Group’s standards at each stage of the process. Its Quality Management Division also conduct regular plant audits, spot checks and inspections at external partner factories. However, the number or frequency of such audits are not reported. | The company reports that its Compliance Committee regularly checks the risk management status regarding food safety and compliance. The company says that its Compliance Committee regularly checks the risk management status regarding food safety. It has several compliance initiatives, including internal training, an employee awareness survey, and an internal reporting system. It also mentions that a primary countermeasure for risk will be establishing a quality control system based on international control standards. However, corrective action rates from non-conformance are not disclosed. Further, it does not disclose whether it is developing consumer-facing technology for food safety.

The company acknowledges food safety as a critical business risk and has identified primary countermeasures. However, it does not disclose a description of how it approaches product recalls or the number of recall incidents in the reporting period. No incidents were detected in the media screening.

The company provides no disclosure on market bans, and none were detected in media screening.

The company established a sustainability committee in April 2021 to promote sustainability management and make recommendations to the board of directors regarding sustainability. The committee comprises the joint CAO/CFO as chairperson, four representatives from each division, and one independent director. In addition, the company has conducted a materiality assessment and found seven material issues. The board of directors has the final say on the output of the materiality assessment. The issues identified were healthy diets, reducing environmental burden, workplace safety, sustainable procurement, local communities, corporate governance, and product quality. According to the company's board of directors skills matrix, two board members have ESG and sustainability expertise. However, the company must disclose whether it holds board-level food safety and innovation expertise.

The company does not explicitly mention performance-based compensation linked to sustainability. The company's New Zealand subsidiary, ANZCO, discloses several trade and civil associations it partners with. Several of these associations focus on discussing climate change and action, but it is still being determined if ANZCO engages in discussions with these partners on other ESG issues. The company also disclosed details of memberships with trade associations. In addition, the company ensures that its sustainability office is consulted before any environment-related policy engagements to ensure that any engagement is aligned with the group's climate change strategies. However, the company's management activities are yet to be aligned with the goal of the Paris Agreement to restrict global temperature rise to 1.5°C.

The company does not disclose a strategic approach to sustainability innovation or state whether it benchmarks itself against peers in sustainability and innovation.

The company acknowledges the business opportunities in the non-meat business, as its market has expanded in recent years. It states that it provides customers with new options for obtaining protein in their diet and that the demand for non-meat is expected to grow in the medium term. It still needs to set a timebound target to diversify protein sources. It reports revenue from the processed food and meat segments but does not report this information specifically for alternative protein or non-meat products.

The company has expanded the product range in its "Marude Oniku!" series, launched in 2020, and its "AIRMEAT" series. Both non-meat brands utilise vegetables and processing technology to replicate meat's texture, flavour, and smell. Additionally, it is selling an unheated meat series, "Onikuya-san no Daizu MEAT", which can be used in various meals at home. It also discloses that it has a supply system to respond to expanding the non-meat business field. There is a need to develop non-meat products over the next ten years. Following the disclosure of R&D to release five new creations under the “Marude Oniku!” brand in 2021, at an estimated expense of 76.25 million yen, it has set a goal to further expand investments into alternative meats projects from 2023.