The Morinaga Group’s Materiality

Process of Identifying Materiality

When formulating our 2024 Medium-Term Business Plan, we reviewed our materiality based on changes in the external environment surrounding our management.
The newly identified and organized issues requiring action were assessed in terms of importance by 16 external stakeholders (three investors, five business partners, one NGO, three Advisory Board Members, and four Outside Directors) and 11 key members of the Company. Based on this result and repeated discussion among board members, given comprehensive consideration on their relation to the Morinaga Group's management and business operations, we have identified five materialities.

Materiality Identification Process

Materiality Identification Process

1 Issue Identification

In consideration of the changing external environment, we have identified issues to be addressed by MORINAGA Group based on management and business challenges, international norms and initiatives such as the SDGs and the UN Global Compact, stakeholder expectations and requests, and various ESG assessments.

2 Issue Importance Assessment

External stakeholders (external experts, investors, business partners, NGOs, and outside directors) and key internal members of the company evaluated the importance of the issues identified on the two axes of "importance to the sustainable development of society" and "importance to the sustainable growth of our group."

3 Materiality Identification

Based on the results of the Issue Importance Assessment, the Sustainability Committee discussed and identified the materiality with the approval of the Sustainability Committee.

Importance Matrix of the Initiative Theme and the five identified materialities are as follows:

Importance Matrix of the Initiative Theme

The Morinaga Group’s five materiality

  • 1

    Contribute to Healthy Lives of People around the World

  • 2

    Diversity and Inclusion of People

  • 3

    Achieve Sustainable Value Chains

  • 4

    Conserve the Global Environment

  • 5

    Strengthen Governance in Sustainability

Background to the Establishment of Materiality and Action Themes

1
Contribute to Healthy Lives of People around the World

Action Themes

  • Contribute to delicious and healthy foods
  • Address diversifying consumer needs
  • Develop sustainable products and provide information
  • Ensure food security and quality

Relationship with “Health of Mind, Body, and Environment”

「心・体・環境の健康」との関係

Background to the Establishment of Materiality and Action Themes

The Group’s Purpose states: “We will continue to create healthy foods, thereby bringing smiles to the faces of people around the world now and in the future.” Providing safe, reliable food that promotes “health of mind and body” to people around the world forms the foundation of the Group’s business and represents our most important initiative.

2 Diversity and Inclusion of People

Action Themes

  • Foster human resources to achieve our Purpose and the 2030 Vision
  • Promote diversity and inclusion
  • Promote health management

Relationship with “Health of Mind, Body, and Environment”

「心・体・環境の健康」との関係

Background to the Establishment of Materiality and Action Themes

The Group has set ambitious targets in its 2030 Business Plan, and the driving force behind achieving these targets is our people. For this reason, we believe it is important to maximize the value of human capital. We will provide employees with “health of mind and body,” increase engagement and productivity, and raise corporate value.

3 Achieve Sustainable Value Chains

Action Themes

  • Achieve higher-order sustainable supply chain management
  • Reduce food loss and waste
  • Co-exist and co-prosper with local communities

Relationship with “Health of Mind, Body, and Environment”

「心・体・環境の健康」との関係

Background to the Establishment of Materiality and Action Themes

Various social issues exist in our value chain, from the production and procurement of raw materials to the manufacturing, sale, consumption, and disposal of our products. We believe that working together with stakeholders to resolve these issues and reduce risks is essential for conducting business sustainably.

4 Conserve the Global Environment

Action Themes

  • Mitigate and adapt to climate change
  • Incorporate environmentally concerned plastic containers and packaging for recycling and reuse
  • Sustainable use of water resources
  • Maintain and conserve natural capital and biodiversity

Relationship with “Health of Mind, Body, and Environment”

「心・体・環境の健康」との関係

Background to the Establishment of Materiality and Action Themes

The Group’s business relies on a large amount of natural capital. We recognize that climate change, environmental pollution, and other issues are important issues that affect the sustainable operation of our business.
By addressing various environmental issues appropriately and providing society with “health of environment,” we aim to improve the sustainability of both society and our own company.

5 Strengthen Governance in Sustainability

Action Themes

  • Strengthen corporate governance
  • Strengthen group governance
  • Strengthen risk management
  • Respect human rights

Relationship with “Health of Mind, Body, and Environment”

「心・体・環境の健康」との関係

Background to the Establishment of Materiality and Action Themes

We refer to governance that contributes to improving the sustainability of society and the Group as sustainability governance. In our 2030 Business Plan, we plan to increase the overseas sales ratio and believe that strengthening sustainability governance from a global perspective is essential.

Connection between Materiality and Raising Corporate Value

Initiatives related to our materiality contribute to expanding revenue opportunities and reducing the cost of capital, thereby enhancing the corporate value of the Morinaga Group.
Efforts under “1. Contribute to Healthy Lives for People around the World” contribute to expanding revenue opportunities.
Efforts under “3. Achieving Sustainable Value Chains,” “4. Conserving the Global Environment,” and “5. Strengthening Governance in Sustainability ” all contribute to reducing the cost of capital.
“2. Diversity and Inclusion of People” is a materiality that focuses on maximizing the value of human capital, which forms the foundation for both the expansion of revenue opportunities and the reduction of the cost of capital.

 Connection between Materiality and Raising Corporate Value

Targets and Progress of Materiality

The targets and progress related to our materiality can be found below.