Itoham Yonekyu Holdings Inc

The company has not set a science-based emission reduction target and has no plans to establish one within the next two years. It aims to reduce methane emissions from cattle production by 10% by 2024, using 2022 as the base year. However, this target is part of a demonstration experiment, and with unverified data, the achievement rate for the reporting period remains at zero.

The company has set a new target for 2023 to reduce absolute greenhouse gas (GHG) emissions by 50% by FY2030, using FY2016 as the base year. This target covers 100% of Scope 1 and Scope 2 emissions. The company also aims to achieve net zero across all group companies by FY2050. The ANZCO overseas division plans to lower Scope 1 and Scope 2 emissions by 25% by 2030, using 2020 as the base year, specifically at its New Zealand locations. However, the company has not set a target for Scope 3 emissions.

The company collaborates with Mirai Farm Co Ltd., its Wagyu beef supplier, and the Tokyo University of Agriculture to reduce GHG emissions. The project tests cashew nut shell liquid feed to suppress methane emissions. Upon confirming its effectiveness through demonstration experiments, the company plans to extend this initiative to other suppliers.

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

The company is testing methane-reducing feed additives on a limited number of animals to reduce emissions from animal farming. However, it has not disclosed plans to expand this initiative across all operations.

The company reports Scope 1 and 2 emissions for 2022 as 206,963 tCO2 and 160,313 tCO2, respectively. However, it only discloses Scope 3 emissions data for 2021, which were 6,952 tCO2, with no data provided for 2022.

The company provides partial data on CO2-equivalent emissions from animal farming through its subsidiary, ANZCO Foods. Specifically, it reports biogenic methane emissions from the Five Star Beef feedlot, accounting for 37% of Scope 1 emissions, with cattle contributing 21,145 tonnes CO2e and sheep 2,199 tonnes CO2e. However, it does not offer a comprehensive breakdown of CO2-equivalent emissions from all sources, such as detailed enteric fermentation and manure management. Furthermore, the company does not disclose information on greenhouse gas emissions from feed production or land-use change.

The company has responded to the CDP Climate Change 2023. It discloses that the GHG inventory from its subsidiary ANZCO Foods, covering all Scope 1, 2, and 3 emissions, is audited by Toitū Envirocare according to the ISO-14064 standard. However, it does not clarify whether its entire GHG inventory is audited by a third party.

Between FY2022 and FY2023, the company reports a minimal 0.2% reduction in combined Scope 1 and 2 emissions. Over the period from FY2020 to FY2023, emissions decreased by 3% from 379,030 to 367,276 tCO2e, averaging a 1% annual reduction. In its subsidiary ANZCO Foods, the company discloses a reduction in enteric fermentation for beef cattle but does not provide an explanation for this decrease. The company reports 206,963 tCO2 for Scope 1 emissions and 160,313 tCO2 for Scope 2 emissions.

The company has performed a climate-related scenario analysis to assess both transition and physical risks linked to climate change. This includes quantitative and qualitative evaluations based on scenarios such as the IEA NZE 2050 Scenario, using carbon prices, and the IPCC RCP8.5, examining physical risks. The findings have informed the identification of potential risks and opportunities, evaluated financial impacts, and guided strategic responses to bolster business resilience.

The company has identified significant physical risks from climate change affecting feed availability and price volatility, particularly impacting crops such as corn, wheat, and soybeans. To address these risks, it is considering converting food waste into feed, using feed-efficient livestock breeds, and researching feed supplements. Additionally, it plans to collaborate with meat suppliers to cultivate climate-resilient feed crops, diversify cultivation methods, and invest in alternative materials to ensure long-term supply chain resilience and sustainability. While recognising the impact of rising temperatures on livestock due to climate change, the company has not explicitly reported mitigation or adaptation measures for this particular risk and is encouraged to do so. It also does not disclose information on rising veterinary care and medicine costs. The company views energy cost as a corporate risk and identifies rising energy prices in relation to climate-related risks. However, it has not detailed how it will mitigate or adapt to this specific issue and is encouraged to disclose such plans. In its climate strategy, the company acknowledges risks associated with carbon pricing. It has analysed the potential financial impact and is considering mitigation measures, including introducing carbon pricing in the regions where it operates. This analysis, which includes projected costs under different scenarios, informs its strategy to achieve net-zero emissions by 2050. The company does not disclose the number of financially material events resulting from climate risk during the reporting period.

The company reports that 5.7% of its capital expenditures, equivalent to one billion yen, align with its greenhouse gas (GHG) reduction targets and climate transition plan.

The company sources soy for animal feed but does not disclose the percentage of feed ingredients this represents. 100% of soy is not sourced from deforestation-free areas or suppliers. The company has not undertaken a deforestation-related risk assessment to identify high-risk sourcing locations.

The company does not disclose having a deforestation/conversion-free target for soy.

The company does not report progress against its commitment. Nor did it respond to the CDP Forest Questionnaire in 2022.

The company does not disclose whether all sourced cattle come from regions free of deforestation risk. Additionally, it has not conducted a risk assessment or identified all high-risk locations.

The company does not report having a deforestation/conversion-free target for cattle.

The company discloses cattle-related information to the CDP Forests Questionnaire.

The company has a procurement policy requesting supplier information on the 'destruction of forests', but it does not specifically address soy. Additionally, it does not support soy producers in achieving deforestation-free production or improving traceability.

The company does not disclose how compliance is monitored or what actions are taken if non-compliance occurs. Furthermore, the company does not disclose the level of traceability in its soy supply chain.

The company does not discuss innovations or practices to move towards sustainable feed sources.

The company has established procurement guidelines encouraging suppliers to preserve biodiversity. It provides capacity-building training to cattle suppliers, incorporating environmental considerations, and states that farmers must not be involved in deforestation. However, the company does not elaborate on the support it offers in this regard. Improved disclosure on support for deforestation-free production or traceability enhancement is recommended.

The company has conducted a supplier questionnaire survey regarding cattle products, applicable to its supply chain, though it does not specify whether this includes both direct and indirect suppliers. It addresses non-compliance in the supply chain through dialogue, explanations, and improvement requests. The company reports maintaining traceability in its cattle supply chain, with 44% traceable to the slaughterhouse, another 44% to the breeding farm, and the remaining 12% traceable to the country level. There are no public links to deforestation during the reporting year.

The company discloses partnerships with domestic farmers through cooperative farms, providing guidance that includes environmental considerations. It states that these contract farmers do not engage in land conversion or deforestation.

The company conducted a water-related risk assessment using WRI's Aqueduct tool. It reported facilities in Japan as having low or low-medium water risk, while its facility in Thailand is rated as medium-high risk. However, the company does not specify that all its processing facilities operate exclusively in low-water stress areas. Three Japanese facilities, using approximately 2% of the company's total water consumption, were identified as exposed to water risks due to disasters. The company's total annual water consumption is 22.116 million cubic metres. Additionally, its subsidiary ANZCO Foods is implementing the TripleM project (measure, monitor, manage) to establish water intensity targets for 2024. Although the company aims to improve water usage, it does not disclose specific water-saving measures.

The company does not disclose water reduction targets at its facilities specifically for the reporting year. However, in its 2023 CDP Water response, it reveals a company-wide target to reduce water usage to 17.1 m3 per ton of product by 2025, from a 2022 baseline of 17.6 m3. For the current reporting year, the company achieves usage of 16.9 m3 per ton of product, surpassing its target.

In the reporting year, the company withdrew 3,375 megalitres of fresh surface water and 8,490 megalitres of non-renewable groundwater. According to its WRI Aqueduct assessment, no withdrawals were from "High" or "Very High" water stress areas, with withdrawals instead comprising 3,790,000 tons from low-stress, 4,122,000 tons from low-medium stress, and 3,804,000 tons from medium-high stress areas. In 2023, the company reported a 48.9% increase in CAPEX from the previous year and anticipates a further 5% rise due to planned relocations of production facilities and logistics bases. It reported that OPEX remained unchanged and does not foresee changes with business expansion, expecting instead improved operational efficiency. The company's water accounting data has not been verified by third-party auditors, but it has disclosed information to the CDP Water Security 2023. The company reported a decrease in water withdrawal from 11,997 megalitres in 2022 to 11,865 megalitres in 2023. However, water consumption rose significantly from 2,033 megalitres in 2022 to 22,116 megalitres in 2023.

The company does not address water usage in its feed supply chain. It does not discuss comprehensive guidance, support, or incentives offered to suppliers/growers on water usage and has not established a partnership with a third party to input into sourcing/farming strategy.

The company does not disclose feed water intensity or the proportion of feed sourced from water-stressed areas. Furthermore, the company does not provide evidence that it is investing in sustainable feed production from a water-use perspective.

In its 2023 CDP Water response, the company states that the beef produced in Japan and New Zealand does not come from water-stressed areas, but it lacks similar data for beef imported from the United States, Australia, and Mexico. There is also no data on water scarcity for pork sourced from the United States, Canada, Mexico, and Europe; chicken from Brazil and Thailand; and sheep from Australia. The company asserts that its processed meats are not sourced from water-stressed areas and aims to gather data on the proportion of animal protein commodities produced or sourced in such areas within the next two years. The company's New Zealand subsidiary, ANZCO, is implementing science-aligned intensity targets for water and energy usage, though no further details are provided. In its CDP disclosure, the company mentions engaging with suppliers on water-related issues but does not elaborate on this support or guidance.

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

In 2023, the company experienced water-related regulatory violations concerning wastewater odour and equipment maintenance, though no fines were imposed. The company's site in Thailand is classified as medium-high risk according to WRI water risk maps, including water quality assessments. The company states its commitment to environmental law compliance and natural environment protection. However, it has not set quantitative targets for water pollution or wastewater-related volume.

The company reports that its farms apply advanced wastewater treatment before discharge into rivers, adhering to national or local environmental standards. However, it does not disclose the quality of the discharged wastewater. The total wastewater discharge for the reporting year was 9,748,000 tons, but this water accounting data has not been verified by a third-party auditor. The company disclosed its CDP Water Security information in 2023.

The company has not disclosed its practices for converting animal by-products from processing effluents into fertiliser or biogas. Additionally, it has not addressed improvements in aggregate wastewater quality compared to the previous reporting period. However, the company reports a reduction in wastewater volume from 9,964,000 tons in 2022 to 9,748,000 tons in 2023.

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, or incentives to suppliers/growers on nutrient management or fertiliser use in crop production.

The company does not invest in sustainable feed production to improve nutrient management or disclose information about pesticide use in its feed supply chain.

The company does not outline processes for manure management, conversion to biogas, or sustainable slurry application. Additionally, it has not specifically identified farms located in areas at high risk of nutrient pollution.

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

The company does not integrate nutrient management performance into incentive schemes for farmers. It does not discuss innovations in manure or provide evidence of a community engagement plan in relation to pollution.

The company does not disclose a policy on antibiotic usage or measures taken to reduce their need.

The company does not disclose the quantity of antibiotics used.

The company prioritises animal welfare by endorsing the Five Freedoms outlined by the World Organisation for Animal Health (OIE). This approach aims to enhance livestock product quality, safety, and productivity by ensuring animals are free from hunger, thirst, malnutrition, fear, distress, discomfort, pain, injury, and disease. It also promotes conditions that enable normal behavioural patterns in animals. The company develops uniform animal welfare guidelines and conducts training sessions for farm employees to ensure adherence. It takes a systematic approach to address animal welfare breaches by identifying root causes, implementing corrective actions, and aiming for continuous improvement in husbandry practices. However, it does not disclose the specific corrective actions taken at the employee or supplier level. Moreover, the company does not provide information about its participation in research and development programs related to advancing animal welfare.

The company plans to abolish the gestation stall method, replacing it with the herd or free stall method for pregnant pigs during barn construction or renovation. However, it does not disclose the current scope of this initiative at the Ito Ham Yoneku Group level. The company commits to reducing pain during procedures by adhering to veterinary advice regarding timing and methods, with trained personnel undertaking these tasks. However, it does not provide details on routine practices such as tail docking, teeth clipping, and other mutilations. The company outlines measures for maintaining the health and welfare of animals during long-distance transportation, including appropriate feeding, watering, stress minimisation, and injury management. Nevertheless, it does not explicitly commit to avoiding long-distance transportation or reducing transport times to 8 hours or less. The company does not provide specific information on humane slaughter practices. While the company claims to offer a suitable environment for animals, including proper housing conditions and environmental controls to reduce stress and injury, it does not disclose information on enriched environments. The company does not explicitly commit to excluding breeds with production traits that increase anatomical or metabolic disorders.

The company conducts internal animal welfare audits, but these are limited to its ANZCO subsidiary in New Zealand.

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

The company does not disclose information on maximum transport times, humane stunning methods, dehorning practices, or outdoor access for cattle during the growing season. It has committed to eliminating gestation stalls and adopting group housing or free-stall methods for pregnant pigs in new or renovated barns. The company discloses efforts to provide a suitable environment for livestock by controlling temperature and humidity, minimising noise, providing species-appropriate lighting, and ensuring good ventilation. However, it does not disclose details on maximum stocking density, waterbath stunning, or the use of higher welfare breeds.

The company commits to supporting human rights standards, including the International Bill of Human Rights, and adheres to the International Labour Organization's Declaration on Fundamental Principles and Rights at Work. It also follows the United Nations Guiding Principles on Business and Human Rights to ensure its business activities respect human rights.

The company has conducted human rights due diligence in its operations, focusing on identifying negative impacts, prevention, mitigation, and evaluating initiative effectiveness. It has also surveyed suppliers to assess their human rights and environmental practices. However, it is unclear if the company extends its due diligence beyond these surveys. The company does not disclose its process for monitoring and reviewing human rights adherence or for identifying subsequent actions. To address diversity, the company has expanded internal training on harassment and racial harassment. It also reports visiting two business partners in FY2023 to share knowledge and assess their efforts to mitigate human rights issues.

The company does not disclose whether it has identified any human rights risks in its operations through human rights due diligence.

The company prohibits discrimination, harassment, child labour, and forced labour in both its operations and supply chain. However, it does not disclose a commitment to paying employees a living wage or sick pay, and does not disclose monitoring compliance with these policies through audits.

The company uses a supplier self-check questionnaire to monitor compliance with its policies, but there is no mention of audits. It has established an Internal Consultation Hotline and an Outside Consultation Hotline for compliance-related consultations and reports. Despite assurances of confidentiality for whistle-blowers, it is unclear if anonymous reporting is allowed. Additionally, the company offers an external contact point for customers and business partners via a Customer Service Office inquiry form to report adverse human rights impacts. However, it does not disclose whether this mechanism supports anonymous reporting. Furthermore, the company does not provide information on grievance mechanisms within its direct operations.

The company is committed to protecting employee health and safety through hazard assessments and training. However, it does not disclose the percentage of facilities with health and safety committees that include worker representatives. Additionally, it has not assessed or addressed the risk of antimicrobial resistance for its workforce.

The company’s New Zealand subsidiary reports the number of lost time injuries by incident type, including 37 injuries related to knife safety in 2023. However, the company does not disclose injury rates for operations outside New Zealand. For 2022, the subsidiary’s Total Recordable Rate (TRR) was 15%, with a Lost Time Injury (LTI) rate of 5.6%, but the company provides no information on improvements in group-level injury rates. Additionally, the subsidiary experienced a 14.4% increase in its Total Recordable Injury Frequency Rate from 2022 to 2023. The company does not disclose any fatality data for the reporting year or previous years, nor does it report improvements in fatality rates. ANZCO Foods, a subsidiary, reported a salaried employee turnover rate of 10.9% in 2023, although this is not disaggregated by seniority level.

The company guarantees freedom of association across its value chain but does not disclose unionisation rates or details of measures supporting these rights. Although its human rights policy, which includes freedom of association, extends to suppliers, the company does not require suppliers to implement a collective bargaining policy.

The company does not disclose a policy on collective bargaining or the number of employees covered by such agreements. It reports subsidiary ANZCO's workforce distribution as 3,314 permanent employees, 64 temporary employees, 2,953 part-time employees, and 61 full-time employees. However, it does not provide details on its subcontracted workforce.

The company reports that several of its production facilities have obtained Global Food Safety Initiative (GFSI) certifications, including FSSC 22000. In Japan, 44 out of 45 production facilities were certified in 2022. However, the company does not disclose if its suppliers are required to obtain GFSI certification or the proportion of suppliers holding such certifications.

The company does not report the number or frequency of food safety audits conducted during the reporting year. It also does not specify associated corrective action rates, nor does it disclose whether it has implemented or is in the process of developing consumer-facing technology for food safety.

The company recognises the importance of food safety but does not disclose information about its product recall system, procedures, or protocols. Additionally, it does not provide the number of recalls for the reporting year.

The company does not disclose the number or locations of market bans. No product recalls or market bans were detected in media screenings during the reporting period.

The company established a Sustainability Committee in April 2021, led by the Managing Executive Officer and including one independent director, to serve as a consultative group to the Board of Directors and promote sustainability initiatives. It has identified material issues and set KPIs for FY2021 and FY2022, which it continues to address. The Board of Directors retains final decision-making authority regarding materiality assessments. The identified material issues are achieving a nutritious diet, environmental considerations, fostering workplace engagement, sustainable procurement and supply, contributing to local communities, strengthening corporate governance, and ensuring high product quality. Two board members, Hajime Ogawa and Mikiko Morimoto, have ESG and sustainability expertise. The company, however, does not provide information about expertise in food safety. Additionally, directors Isao Miyashita, Koichi Ito, Yukie Osaka, and Mikiko Morimoto have been identified as having expertise in Product Development.

As of FY2024, the company will incorporate ESG performance in 20% of directors' performance-related pay. ESG performance will be evaluated using three main metrics: greenhouse gas emissions, the ratio of female managers, and employee engagement survey scores. The company is a participant in the Japan Climate Initiative, collaborating with entities such as companies, research institutions, and civil associations to implement climate solutions in Japan. Its subsidiary, ANZCO, is involved with several organisations including the Meat Industry Association, New Zealand Roundtable for Sustainable Beef, Meat Business Women, and Beef + Lamb New Zealand, although this involvement is limited to its operations in New Zealand. The company has a protocol ensuring its Sustainability Office participates in any environmental policy discussions, aligning these with the organisation's climate change strategies. However, management practices have not yet been adjusted to support the goal of limiting global temperature increases 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 views protein diversification as both a climate change transition risk and opportunity due to shifting demand towards plant-based protein for ethical consumption. In response, it is expanding its plant-based product offerings and investing in research and development of cultured meat. It acknowledges the need to provide alternative protein sources amidst potential global shortages and social expectations to lessen environmental impact. However, the company has not explicitly stated its strategy for diversifying its portfolio to ensure business resilience beyond consumer trends. While the company discloses net sales figures for its processed food and meat divisions, it does not provide specific sales data for alternative protein or non-meat products. Additionally, it has not specified a timebound target for diversifying its protein portfolio.

The company has expanded its soy-meat "Marude Oniku!" series to include a broader range of products, actively marketing soy-based alternatives that mimic the textures, flavours, and aromas of meat since 2020. Its portfolio now features items resembling deep-fried meat cutlets and fried chicken. In March 2023, the company established the Consortium for Future Innovation, collaborating with industry, academia, and government to advance research into cultured meat as a food source.