Promotion of Sustainable Raw Material Procurement

Basic Stance

Based on the Morinaga Group Procurement Policy, we intend to contribute to the realization of a sustainable society by building transparent, fair and equitable relationships with our business partners, and cooperating with them to conduct socially-responsible and environment-friendly procurement activities.

Morinaga Group Procurement Policy

In order to realize food safety and reliability as well as a sustainable society, the Morinaga Group endeavors to build fair and equitable relationships with our business partners and carry out procurement activities that are considerate of society and the environment.

1. Compliance/adherence to social norms, etc.
We comply with laws and social norms, etc., carrying out healthy procurement activities in accordance with the Morinaga Group's Code of Conduct.
2. Product quality/safety assurance
Placing top priority on customers' safety and peace of mind, we strive to ensure product quality in carrying out our procurement activities.
3. Strengthening partnerships
We work together with our business partners with the common goals of “Customer Delight” and “Customer First,” building relationships that enable mutual expansion.
4. Fair and equitable trading
Comprehensively taking into account efforts related to product quality, prices, delivery deadlines, technological strength, and social/environmental aspects, we undertake fair and equitable trading activities.
5. Consideration for human rights/work environment/safety
Based on the Morinaga Group's human rights policies, we carry out procurement activities giving consideration to human rights, the work environment, and safety.
6. Consideration for the global environment
Based on the Morinaga Group's environmental policies, we carry out procurement activities aimed at realizing a sustainable society, giving consideration to the global environment.

(Established: May 2018)

Medium- to long-term targets for Sustainable Raw Material Procurement

Goal for 2030

100% for cacao beans, palm oil, and paper*1

*1Scope: Group consolidated basis except Food Merchandise. Paper covers product packaging only.

Medium-term Targets

Raw materials for products of Morinaga & Co., Ltd. sold in Japan

• Cacao beans Switch to 100% of cacao beans from sustainable sources by FY2026/3

• Palm oil Switch to 100% of palm oil from sustainable sources by FY2024/3

• Paper Switch to 100% of paper from sustainable sources by FY2023/3*2

*2Paper covers product packaging only.

Progress of Medium-term Targets
Initiatives Results for FY2024*3
Cacao beans 78%
Palm oil 100%
Paper 100%

*3Scope: Morinaga products in Japan. Paper covers product packaging only.

Cacao beans

Cacao beans, a key raw material for chocolate, are associated with a range of social issues including human rights issues such as working conditions, poverty, child labor, and environmental issues such as deforestation. Since FY2020, we have been promoting the procurement of certified cacao beans (e.g., Cocoa Horizons–certified cacao*1 supplied by the Barry Callebaut Group) that contributes to sustainable procurement.

  • *1"Cocoa Horizon Certified Cacao" is cacao beans supplied under the mass balance method (a certification model in which certified and non-certified cacao materials are mixed) of the Cocoa Horizons Foundation*2, led by Barry Callebaut.
  • *2COCOA HORIZONS Foundation is a non-profit organization with a vision of promoting the prosperity of cacao farmers by creating self-sustaining communities that protect nature and children.
    https://www.cocoahorizons.org

We work to understand the realities of cacao farmers by such means as having directors in charge visit cacao sapling farms.

Inspection Scenery

Collaboration with Cacao Farmers and Production Partners (Vietnam)

In order to deliver high quality chocolate to our customers, we are particular about the taste and aroma of the cacao beans used as raw materials.
At times, our researchers interact with partners in producing regions to jointly develop high-quality cacao beans. In Vietnam, for example, we worked with the partners, including farmers, to pursue optimal quality control and fermentation conditions for cacao beans, leading to quality improvement and stable income for farmers.

Interacting with the production partners
in front of the cacao pods

Ensuring the quality with the partners

Drying cacao beans on the equipment
donated by Morinaga & Co., Ltd.

Support for education, resolution of child labor, and income enhancement in cacao production areas (1 chocolate for 1 smile)

"1 Chocolate for 1 Smile" is an initiative that we have been working on since 2008 to improve the sustainability of chocolate. We use a part of sales of our products to support efforts to improve the educational environment for children who will lead the future of cacao producing countries such as Ghana, to address child labor issues, and to raise the income of cacao farmers. In addition to donations made throughout the year, we also implement customer-participatory support activities in which "actions" such as purchasing products or participating in campaigns lead to donations.
Our support partners are Plan International, an international NGO, and ACE, an NGO born in Japan.
Employees also visit support areas and engage in dialogue with cocoa farmers, adults, and government officials, as well as children of cocoa farmers.

Content of support Number
Total amount of support 63%
Number of years supporting 17 years
Number of countries, villages and settlements that we provided support 6 countries, and 183 villages and settlements
Number of children that we provided support 17,503
Number of children of cacao producing countries free from child labor 627
Number of schools that we provided support 91
Number of adults who learned about issues such as education and child labor through the project 7,077
  • *As of Febuary 2025
  • *Total amount of support provided by Plan International and ACE

One Chocolate for One Smile

Ghanaian children receiving school meals provided by the support

One Chocolate for One Smile

Dialogue between our employees and cocoa farmers

Membership in the World Cocoa Foundation (WCF)

Morinaga supports the activities of the World Cocoa Foundation (WCF)—which promotes various programs aimed at providing technical guidance and educational support for cacao farmers, as well as realizing societies without child labor, and provide support for cacao-producing countries through our activities as a WCF member.

Providing technical guidance to cacao farmers

Endorsing the Elimination of Child Labor in the Cacao Industry

The Morinaga Group endorses the Action Plan to Eliminate Child Labour in the Cocoa Industry, a cacao industry issue promoted by Platform for Sustainable Cocoa in Developing Countries, for which the Japan International Cooperation Agency (JICA) serves as the secretariat. This platform is a place where Japanese companies, non governmental organisations (NGO), and other organizations related to the cacao industry collaborate to solve issues facing the industry such as farmer poverty, deforestation, and child labor. The goal is to realize a sustainable cacao industry. By using the Action Plan to Eliminate Child Labour in the Cocoa Industry as a practical guidance for understanding, preventing, and reducing child labor, which is one of the major issues related to business and human rights, we will increase efforts to promote human rights relateed to supply chain.
As a member of the "Sustainable Cacao Platform in Developing Countries," we will continue our efforts to resolve these issues.

Palm oil

While palm oil is used in a wide range of products, such as processed foods and detergents, illegal logging and human rights problems in the producing regions have become social issues. The Morinaga Group has promoted the procurement of certified palm oil (RSPO*-certified raw materials) and achieved 100% sustainable procurement of palm oil used for our products in Japan in March 2024. We will continue to work on promoting the sustainable procurement of raw materials.

Paper

Japan relies on imports for around 70 percent of the paper raw materials it uses, and the incorporation of illegal timber products into these raw materials has become an issue. The Group asims to help prevent global warming by making effective use of timber resources that are not associated with illegal logging or destruction of ecosystems, and are not harmful to the environment or local communities. In FY2023, we completed the switch to sustainable paper in all our products in Japan. We will continue to promote the sustainable procurement of raw materials.

  • *1FSC® (Forest Stewardship Council®): An international NPO that works to ensure that forests are used appropriately and protected.
  • *2FSC®-certified paper: Paper made of raw materials from managed sources of supply, including raw materials that have been assessed and certified as deriving from forests where forest management and logging are controlled appropriately to preserve ecosystems as a means of environmental conservation.

SFC

Other raw materials

We will also examine measures for other raw materials believed to pose new risks in the future.

Achieve Sustainable Value Chains

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