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

*1Group consolidated. 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 FY2023/3 Single Month Results for March 2023
Cacao beans 34% 72%
Palm oil 9% 45%
Paper 99.9% -

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

Cacao beans

The production of cacao beans, the raw material for chocolate, poses various social issues such as poor working conditions for cacao farmers, poverty, child labor, and global warming caused by deforestation.
Since FY2020, we have been promoting the procurement of "COCOA HORIZONS*1 Certified Cacao*2" for some of our chocolate products, in support of the philosophy of the "COCOA HORIZONS" program, which aims to contribute to sustainable procurement to solve the social issues described above.

  • *1COCOA HORIZONS is a non-profit program run by the COCOA HORIZONS Foundation*3.
    By supporting COCOA HORIZONS Certified Cacao*2 and promoting the procurement of certified cacao, we can also contribute to the prosperity of cacao farmers, reduce deforestation and CO2 emissions, and promote child protection.
  • *2"COCOA HORIZONS Certified Cacao" is based on the mass balance method (a certification model in which certified and non-certified cacao materials are mixed).
  • *3COCOA 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.

Supporting Education and Preventing Child Labor in Cacao-producing Countries (One Chocolate for One Smile)

The One Chocolate for One Smile project is aimed at aiding the activities to improve the educational environment for children in cacao-producing countries, using revenues from the sale of our chocolate products subject to the project (such as Dars). In addition to our year-round economical support, we donate one yen per eligible chocolate product sold during the designated months. Since this project started in 2008, it marked its 15th anniversary in 2023.
In cooperation with NGOs, we are working to support education and stop child labor problems in cacao-producing countries.

Children in Ghana enjoying school meals provided by the support program

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

Morinaga Group uses palm oil in many of its products, so we are working to switch to certified palm oil (RSPO*-certified raw materials) and aims to switch all its products in Japan to certified palm oil by FY2023.

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. To that end, the Group has been working on environmentally conscious procurement of raw materials such as FSC®*1-certified paper*2 and recycled paper and to switch all our products in Japan to sustainable paper.
In FY2022, some materials could not be replaced, resulting in a usage rate of 99.9%. We will continue to promote initiatives to achieve our goals.

  • *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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