Sustainability Approach and Structure

The following is the Ajinomoto Group stance on sustainability.

Our goal as the Ajinomoto Group is to contribute to the well-being of all human beings, our society and our planet with “AminoScience.” To this end, we believe it is necessary to realize two outcomes by 2030, namely, to reduce our environmental impact by 50% and to help extend the healthy life expectancy of one billion people.
The business of the Ajinomoto Group is supported by sound food systems^*1 based on stable food resources and the vibrant natural environment. However, we are also aware that our business activities have an impact on the environment. Today, as we reach the limits of what our planet can sustain, it is essential that we put in place efforts to regenerate the environment. We believe that we can only implement initiatives aimed at extending healthy life expectancy in a sustainable manner by reducing our environmental impact through measures such as responding to climate change, ensuring sustainability of food resources, and the conservation of biodiversity.
Through our business activities, we provide products and services that are delicious, nutritionally balanced, and benefit people’s dietary habits, and further promote reduced environmental impacts caused by greenhouse gases, plastic waste, and food loss and waste. Also, through our resource recycling-based amino acids fermentation process (a bio-cycle), we are contributing to sustainable food systems that are more resilient and to regeneration of the global environment.
Furthermore, we will aim to create a more positive impact on society by maximizing the Ajinomoto Group's strength in “AminoScience”, while steadily reducing negative impacts, such as environmental impact.

In the Ajinomoto Group, we honestly comply with the Ajinomoto Group Policies (AGP) that show the ideal way of thinking and action that the Group companies and their officers and employees should comply with, continue to develop and properly operate our internal control system, strengthen our system that considers sustainability as an active risk-taking system, and continuously enhance our corporate value.
We are strengthening our sustainability promotion system in order to continuously increase our corporate value from the perspective of sustainability. As of the publication of this document, this system is outlined below.

Board of Directors

Establishes the Sustainability Advisory the Board of Directors has established the Sustainability Advisory Council, creating a system to provide recommendations about the Group’s approach to sustainability and ESG. It determines material issues for the Ajinomoto Group (materiality) that serve as guidelines for ASV management and supervises the execution of initiatives related to sustainability including climate change and biodiversity etc.

Executive Committee

Establishes the Sustainability Committee and the Executive Committee has established the Sustainability Committee and the Risk Management Committee as its subordinate bodies, which identifies risks and opportunities based on material matters for the Ajinomoto Group (materiality) and assesses them for degree of impact, formulates measures, and manages their progress. In fiscal 2023, the Executive Committee received two activity reports from the Sustainability Committee.

Sustainability Advisory Council

Beginning April 2023, the Second Term Sustainability Advisory Council will continue its work to enhance the Ajinomoto Group's corporate value from the viewpoint of sustainability. The Second Term Sustainability Advisory Council consists of four external experts, primarily investors and financial market specialists, and is chaired by an external expert. After receiving consultation from the Board of Directors, the council will investigate the implementation of materiality, disclosure and dialogue on its progress, and building relationships with stakeholders through these activities, in the interest of stronger monitoring of the Board of Directors, and issue a report in response to the Board of Directors. The Second Term Sustainability Advisory Council will meet at least twice a year and report the results of its deliberations to the Board of Directors.

• Follow this link for more about the Ajinomoto Sustainability Advisory Council.

Sustainability Committee

In order to advance Medium-Term ASV Initiatives, the Sustainability Committee works with the Risk Management Committee to select and identify risks and opportunities based on materiality as well as assess their impact on the Ajinomoto Group, making proposals to the Executive Committee. The committee then formulates countermeasures and manages the progress of sustainability measures. In addition, the Sustainability Committee formulates the entire Ajinomoto Group's sustainability strategy, promotes action themes (nutrition, environment, and society) based on this strategy, makes proposals and provides support for business plans from a sustainability viewpoint, and compiles internal information on ESG.

Risk Management Committee

Works with the Sustainability Committee to the Risk Management Committee works with the Sustainability Committee to select and identify risks calling for particular initiative by management (pandemics, geopolitical risks, information security risks, etc.) based on materiality as well as assess their impact on the Ajinomoto Group, making proposals to the Executive Committee. The committee also formulates risk management measures and manages their progress in order to realize a strong corporate structure capable of responding promptly and appropriately to risks and crises.

The Ajinomoto Group has a wide range of product areas in the food business, from seasonings and foods to frozen foods, and is also expanding its business into fields such as healthcare. As a result, our business is significantly dependent on various natural bounties, or ecosystem services, such as agricultural, livestock, and fisheries resources, genetic resources, water and soil, and pollination from insects and other organisms. We are able to enjoy these natural bounties thanks to a healthy biodiversity shaped by the diversity of organisms and their connections. The issues of biodiversity and those of the environment, such as climate change, the decline of water resources, resource waste, and the pollution of water, air, and soil, are closely intertwined and cannot be separated. Considering this mutual interrelationship, we will work to conserve biodiversity and sustainably use biological resources, taking these and other actions to reduce our environmental impact such as limiting greenhouse gas emissions, effectively using resources, and reducing waste.
In addition, we consider human assets to be the source of all intangible assets, and therefore employee engagement is an important factor for us in increasing corporate value. We will strengthen our investment in human resources so that a diverse team of colleagues imbued with our purpose can deeply engage with consumers and customers and take on the challenge of co-creating innovation.

In order to realize the Purpose-Driven Management by Medium-Term ASV Initiatives2030 Roadmap, including the aforementioned two outcomes, it is extremely important to accurately identify risks and respond to them promptly and appropriately. The Sustainability Committee and the Risk Management Committee work closely to ensure that no risk is left unaddressed by the two committees, selecting and identifying risks and opportunities based on material matters for the Ajinomoto Group (materiality) and making proposals to the Executive Committee. The Sustainability Committee then formulates measures and regularly manages their progress for matters related to sustainability, including social, environmental, and nutritional issues, while the Risk Management Committee handles the same processes for risks that management should take the initiative to address pandemics, geopolitical risks, information security risks, etc.).
At each business site in Japan and overseas, we implement a risk process cycle identifying risks and formulating countermeasures, taking into account individual business strategies and local political, economic, and social conditions. The Risk Management Committee continuously improves this risk process cycle, compiles the risks identified by each site, and responds to those calling for initiative by management. In addition, each business and corporation has formulated a business continuity plan (BCP) in preparation for emergencies, and the Risk Management Committee has established a system for constant verification of each BCP's effectiveness and regularly monitors and manages risk response. Full-time Audit Committee members attend the Sustainability Committee and the Risk Management Committee to monitor risk management process.

We will continue our work to achieve a 50% reduction in environmental impact by 2030, as well as achieving net-zero emissions by 2050.
We will also continue our efforts toward goals in existing major themes by 2030, including reducing greenhouse gas emissions, plastic waste, and food loss and waste, as well as achieving sustainable procurement.

Progress in reducing greenhouse gas (GHG) emissions in Scope 1 and 2 and cutting food loss and waste has exceeded our plans. As for reducing GHG emissions in Scope 3, the dialogues with MSG raw material suppliers in Thailand that started in fiscal 2022 will transition to a reduction effort execution stage in fiscal 2024.We intend to expand these activities to other areas horizontally. With regard to plastic waste reduction, we are working to reduce usage and switch to recyclable packaging materials, as well as toward the social implementation of recycling. Regarding sustainable procurement, we are promoting initiatives in priority raw materials, and in fiscal 2023, we also promoted biodiversity initiatives.

In addition, we will work to improve employee engagement scores as a measure to enhance intangible assets and help achieve our ASV metrics.

ASV indicators

We are working to reduce our environmental impact by 50% by 2030 and to achieve net-zero emissions by 2050.
In addition, we are aiming to increase the employee engagement score to 80% (fiscal 2025) and 85% (fiscal 2030).