Ajinomoto Group's ASV* and FY2020 Integrated Targets. *ASV: The Ajinomoto Group Creating Shared Value

Size: px

Start display at page:

Download "Ajinomoto Group's ASV* and FY2020 Integrated Targets. *ASV: The Ajinomoto Group Creating Shared Value"

Myles Fleming
5 years ago
Views:

1 Ajinomoto Group's ASV* and FY2020 Integrated Targets *ASV: The Ajinomoto Group Creating Shared Value

future Our vision is to become a genuine global food company group with specialties guided by our leading-edge bioscience and fine chemical technologies ASV (The Ajinomoto Group Creating Shared

2 Is Ajinomoto Group's Management Strategy Our Philosophy Corporate Message Eat Well, Live Well. Business activities= Management Strategy Ajinomoto Group Mission (Mission) Ajinomoto Group Vision (Vision) Our mission is to contribute to the world's food and wellness, and to better lives for the future Our vision is to become a genuine global food company group with specialties guided by our leading-edge bioscience and fine chemical technologies ASV (The Ajinomoto Group Creating Shared Value) (Value) ASV represents our unchanging commitment: With our stakeholders and businesses, we help solve society's issues, leading to the creation of economic value Ajinomoto Group Way AGP Basic approach and stance in taking on our work Create New Value Pioneer Spirit Social Contribution Value People Beliefs and behaviors to be upheld by each Ajinomoto Group company and each of us who works there Copyright 2017 Ajinomoto Co., Inc. All rights reserved. 2

3 Carry Out Financial and Non-Financial Dialogues Focusing on ASV Up to now Going forward Financial (Medium-Term Management Plan) Financial targets (economic value) Non-Financial (Sustainability Report ) Led by relevant divisions Qualitatively focused (very narrow) E -focused initiatives Non-financial targets (social value) Group-wide Qualitative and quantitative (broad scope) E S G efforts Copyright 2017 Ajinomoto Co., Inc. All rights reserved. 3

Evolving ASV and Realizing Sustainable Growth From 1909 Aspiration of Our Founding (Current) Eat Well,

Kikunae Ikeda Discoverer of the umami taste (From 1909) Saburosuke Suzuki II Founder of the Ajinomoto

three material issues facing 21st-century human society Sales and profit expansion Resolution of

4 Evolving ASV and Realizing Sustainable Growth From 1909 Aspiration of Our Founding (Current) Eat Well, Live Well. Dr. Kikunae Ikeda Discoverer of the umami taste (From 1909) Saburosuke Suzuki II Founder of the Ajinomoto Group AJI-NO-MOTO Food business Resolution of social issues AminoScience business Approach to the three material issues facing 21st-century human society Sales and profit expansion Resolution of social issues Nutrition-related issues Global issues Creating social value by resolving social issues through business Improving economic value Copyright 2017 Ajinomoto Co., Inc. All rights reserved. 4

Materiality Matrix of the Ajinomoto Group (Fiscal 2017 Revised) Sub-issues of the three material

6 Relationship between ASV and ESG Four stories of value creation showing approaches toward the resolution of the three material issues facing 21st-century human society ASV Value Creation Stories We contribute to health and well-being by utilizing our leading-edge bioscience and fine chemical technologies which also leads to deliciousness technologies, and by delivering good and healthy food We contribute to the development of a society that enables strong family/social bonds and diverse lifestyles through eating well We contribute to the sustainability of the society and the earth, with our customers and local communities, across the value chain from production to consumption We co-create value with each region through the perspectives of the customers, with our global, top-class and diverse talents New evaluation criteria that society uses to measure corporate activities Social S Environmental E Governance G Copyright 2017 Ajinomoto Co., Inc. All rights reserved. 6

FY2017-2019 (for FY2020) Medium-Term Management Plan Our FY20 integrated targets have ASV at their core, and are both financial and non-financial.

8) for definitions of nonfinancial targets and calculation assumptions; 3. Annual total and % of annual consumption per person; 4.

7 FY (for FY2020) Medium-Term Management Plan Our FY20 integrated targets have ASV at their core, and are both financial and non-financial. Non-financial targets common across the Ajinomoto Group International standard organizations 1. Measured by Interbrand; 2. Refer to Reference Materials (p.8) for definitions of nonfinancial targets and calculation assumptions; 3. Annual total and % of annual consumption per person; 4. Calculation based on certain products in Japan and Five Stars (Thailand, Indonesia, Brazil, Vietnam, Philippines); 5. Calculated using certain Japan Frozen Foods and Soup products; 6. GHG = Greenhouse gases; 7. Compared to FY05 Note: std. = standard, intl. = international 30 Priority ESG Items External evaluation organizations Copyright 2017 Ajinomoto Co., Inc. All rights reserved. 7

Introduction of ASV Initiatives (1) S Social: Meats and Vegetables

Indonesia, Masako Vegetable consumption per person per day Guideline*:

6 million tons/year (19% of annual consumption) Vegetables: 5.

vegetable consumption FY15: 113 g FY20: 120 g Amount of above consumption

5x of FY15) Recipes for recommended menus Vegetable soup Carrot 60 g

menus = Recommended menus (3 dishes) with Masako making it possible to

approach Highlight vegetable soup in TV CM Deploy Dapur Umami recipe

8 Introduction of ASV Initiatives (1) S Social: Meats and Vegetables Consumption (Japan, Five Stars) E.g. Indonesia, Masako Vegetable consumption per person per day Guideline*: approx. 230 g FY20 targets: Meat: 8.6 million tons/year (19% of annual consumption) Vegetables: 5.5 million tons/year (8% of annual consumption) Outlook for daily vegetable consumption FY15: 113 g FY20: 120 g Amount of above consumption from meals with Masako (Actual: 16 g) (Target: 24 g; 1.5x of FY15) Recipes for recommended menus Vegetable soup Carrot 60 g Cabbage 60 g Masako 9 g Sale weight Amount of Masako used in recommended menus = Recommended menus (3 dishes) with Masako making it possible to consume vegetables Amount of vegetable consumption Communication: example approach Highlight vegetable soup in TV CM Deploy Dapur Umami recipe information site Introduce nutritionally balanced menus on the back of packages *Ajinomoto Group estimation based on WHO recommended intake of vegetables Copyright 2017 Ajinomoto Co., Inc. All rights reserved. 8

Introduction of ASV Initiatives (2) Strengthening Supply Chain Management Raw material Main products Our main initiatives Palm oil Paper Fishery resources Coffee beans Instant Noodles, Soup,

Product package Bonito: HONDASHI Shrimp: Frozen foods (Japan) Coffee products Shared Group target: 100% sustainable procurement by FY2020 Joined the Roundtable on Sustainable Palm Oil (RSPO) in 2012.

9 Introduction of ASV Initiatives (2) Strengthening Supply Chain Management Raw material Main products Our main initiatives Palm oil Paper Fishery resources Coffee beans Instant Noodles, Soup, Specialty Chemicals, etc. Product package Bonito: HONDASHI Shrimp: Frozen foods (Japan) Coffee products Shared Group target: 100% sustainable procurement by FY2020 Joined the Roundtable on Sustainable Palm Oil (RSPO) in Established Palm Oil Procurement Guidelines in July Use of certified oil (MB, B&C) in FY2017 was mainly in Japan and Europe, and was approximately 14% for the Group as a whole. Shared Group target: 100% sustainable procurement by 2020 Based on the Ajinomoto Group Guidelines for Procurement of Environmentally Responsible Paper, strengthen use of office paper and container/packaging paper that is FSC certified.* Since 2013, have participated in Japan's Consortium for Sustainable Paper Use (CSPU). * 71% usage of FSC -certified paper in FY2017 Bonito: since 2009, have carried out the Joint Skipjack Tagging Survey off the Pacific Coast of Japan, a project shared with the Japan Fisheries Research and Education Agency's National Research Institute of Far Seas Fisheries (an incorporated research and development institution). Shrimp: since 2008, have carried out audits focused on food defense (including audits on our raw materials suppliers' labor and human rights). Proceeding with surveys and reviews of sustainable raw material procurement. Started verifying productivity improvements utilizing co-product fertilizer on coffee plantations (Colombia, Brazil, Vietnam, Indonesia) in 2017, while also offering technical guidance, supplying equipment, etc. Launched the Tokunoshima Coffee Support Project in June 2017; started support including growing seedlings using high wind mitigation measures and co-product fertilizer in order to support coffee cultivation near the northern boundary of the coffee belt. Traceability initiatives Raw material quality assurance certificate management system (Ajinomoto Co. Inc., Ajinomoto Frozen Foods Co., Inc., Ajinomoto AGF, Inc.) Promoting human rights due diligence Joined SEDEX in May We have requested suppliers for the information disclosure that utilized SEDEX. Carrying out basic surveys of human rights risks throughout the Ajinomoto Group, while also reviewing key items to be addressed Copyright 2017 Ajinomoto Co., Inc. All rights reserved. Group Shared Policy on Procurement (Revised on: March 1, 2018) Group Shared Policy for Suppliers (Established on: March 1, 2018) Group Shared Policy on Human Rights (Established on: March 1, 2018) 9

10 Thank you.

2 Who is the Ajinomoto Group? 10 A Solid Track Record and the Next Step Forward. 28 Special Feature. 38 Growth Strategies of the Ajinomoto Group

2 Who is the Ajinomoto Group? 10 A Solid Track Record and the Next Step Forward. 28 Special Feature. 38 Growth Strategies of the Ajinomoto Group "Sustainable Growth through ASV" Towards a Genuine Global Specialty Company February 17, 217 Takaaki Nishii President & CEO Copyright 217 Ajinomoto Co., Inc. All rights reserved. Publication of Since 216,