Policies and Our Approach
An ongoing stable supply of products will be difficult if the effects of global warming more drastically change the climate patterns as well as greatly impact water resources, which are crucial for beverage manufacturers. Suntory Group recognizes global warming as one of the major challenges in business continuity due to the potential risk for great increases in production costs caused by a depletion of resources. Therefore, we need to unify as a Group to prevent global warming with the goal of reducing the environmental impact throughout the entire value chain by joining the environmental efforts of governments and local municipalities and by supporting public policy and regulations aimed to mitigate global warming. In May 2019, Suntory Group expressed its support for the Task Force on Climate-related Financial Disclosures (TCFD) recommendations established by the Financial Stability Board (FSB).
Promoting Structure
Global Sustainability Committee
To promote sustainability management, the Global Sustainability Committee (GSC) acts as an advisory committee to the Board of Directors. The Group’s sustainability strategies and the progress on priority themes (water, climate change, containers and packaging, raw ingredients, health, human rights and enriching life) are discussed in the GSC under the lead of the Chief Sustainability Officer
For more information on the Global Sustainability Committee, see Environmental Management.
Targets and Progress
-
*1Based on emissions in 2019.
-
*The greenhouse gas (GHG) emission reduction target set in Environmental Targets toward 2030 has been certified as a 1.5°C Target by the SBT Initiative.
For more information on GHG emissions achievements, see the List of achievements data.
Road Map to Net Zero
Our Initiatives
Decarbonization Investments to Achieve Environmental Targets toward 2030
Suntory Group plans to invest 100 billion yen from 2021 to 2030 to promote decarbonization. These investments are expected to reduce GHG emissions by approximately one million tons in 2030.
Initiatives to Reduce Own-site Emissions (Scope 1 and 2)
Internal Carbon Pricing
Suntory Group introduced internal carbon pricing in 2021. Internal carbon pricing is widely used in making management decisions, mainly capital investment decisions contributing to climate change countermeasures.
<ICP Summary of Suntory Group>
| Price | 8,000 yen per ton |
|---|---|
| Approach | Shadow price |
| Scope | Internal Suntory Group |
| Prerequisites for price calculation | Calculated based on forecasts by the IEA and other international organizations, benchmarks used by other companies in the industry and those promoting advanced environmental initiatives, as well as evaluation of past internal decision-making. |
Initiatives in Production and R&D
Use of Renewable Energy
Suntory Group uses 100% renewable energy for electric power purchased at all of its alcohol and non-alcohol manufacturing sites and R&D facilities in Japan, the Americas, and Europe. This policy contributes to an annual reduction of approximately 230,000 tons* of GHG emissions.
In addition to procured power, we are installing solar panels and introducing biomass boilers as required to generate renewable energy on site.
-
*Based on power procured, 2023
-
Suntory Minami Alps Hakushu
Water Plant -
Suntory Kita Alps Shinano-no-Mori
Water Plant -
Carcaixent Plant (Spain)
-
Biomass boiler
(Chita Distillery) -
Biomass boiler
(Suntory Kita Alps Shinano-no-Mori Water Plant) -
Fred B. Noe Craft Distillery
(Suntory Global Spirits, North America)
Installing Japan's largest 16-megawatt P2G (Power to Gas) system for in-house green hydrogen production
In September 2022, Suntory Holdings Ltd. signed a basic agreement with Yamanashi Prefecture to realize an environmentally harmonious and sustainable society. Suntory aims to install a 16-megawatt P2G system, Japan's largest, at the Suntory Minami Alps Hakushu Water Plant and Suntory Hakushu Distillery by 2025. The system will utilize electricity derived from solar power and other renewable energy sources, making it capable of producing “green hydrogen” without emitting CO2 during the hydrogen production process.
The green hydrogen produced will not only be used as fuel for heat energy at the company’s Hakushu facilities but are also planned to be utilized in the surrounding communities.
-
Suntory Minami Alps
Hakushu Water Plant and
Suntory Hakushu Distillery -
Installing P2G system
Promoting Energy Conservation
Suntory Group is engaged in a wide range of initiatives to conserve energy. Suntory Spirits Ltd. Gunma Brewery is actively making use of natural energy, while the Suntory World Research Center has introduced equipment to reduce its environmental impact. In addition, there are sites like Iwanohara Vineyard and Suntory Okunodaisen Bunanomori Water Plant, which take advantage of their locations in areas with heavy snowfall by using “snow rooms” that store winter snow throughout the year.
-
Suntory Spirits Ltd. Gunma Brewery
-
Suntory World Research Center
-
Snow room at Okudaisen Bunanomori
Water Plant of Suntory Products Ltd.
Suntory Group’s first net-zero CO2 Emissions plant in Japan
The Suntory Kita Alps Shinano-no-Mori Water Plant (Omachi City, Nagano Prefecture) which started operation in May 2021 as a fourth water source for Suntory Tennensui Mineral Water, become the Suntory Group’s first net-zero CO2 emissions plant in Japan through adoption of solar power generation facility and boilers which use biomass fuel, electric power procurement derived from renewable energy as well as offsetting.
In 2023, the Suntory Kita Alps Shinano-no-Mori Water Plant became the first food and beverage factory in Japan to receive PAS2060*1 carbon-neutral certification from the British Standards Institution (BSI). In 2024, the factory was recertified.
-
*1Abbreviation for Publicly Available Specification 2060, an international standard issued by BSI to quantify, reduce, and carbon offset greenhouse gas (GHG) emissions from products/services/activities, thereby declaring them neutral (i.e., emissions of GHGs are effectively zero).
Initiatives in Offices and Other Facilities
Actions in the Offices
Our major offices purchase 100% renewable electricity. In addition, various initiatives are carried out by all employees daily with higher awareness on saving energy in each office. The Odaiba Office in Tokyo installs use of reused water, automatic lighting control system, and human detection sensors for lights in toilets and escalators. Reduction of greenhouse gas(GHG) emission are being promoted in each office by implementing cool biz and warm biz and actively using web conference system.
Suntory Hall and Suntory Museum of Art Purchase 100% Renewable Electricity
From April 2022, Suntory Group purchases 100% renewable electricity for all 30 directly owned manufacturing sites and R&D facilities in Japan. Suntory Hall and Suntory Museum of Art have also switched to purchasing 100% of their electricity from renewable energy sources. Through these efforts, the two facilities have been able to reduce CO2 emissions by approximately 900 tons per year compared to the past.
Initiatives to Reduce Emissions from Raw Ingredient Procurement and Logistics, etc. (Scope 3)
Supplier Engagement
Data Gathering, Goal Setting, and Sharing Best Practices
Suntory Group holds annual policy briefings for its principal business partners, including raw material suppliers, contract manufacturers, and logistics partners, to promote awareness of and support for sustainability initiatives. In addition, through presentations to explain Group initiatives and the use of surveys, we are monitors the status of CO2 emission reduction targets set by major suppliers, and considering future procurement policy initiatives.
Raw Ingredient-related Initiatives
The bounties of nature, in the form of agricultural crops and other raw ingredients, are essential inputs for Suntory Group products. As such, we are collaborating with business partners in the supply chain to implement a broad range of climate change-related initiatives. In particular, it is estimated that GHG emissions from agriculture and forestry account for about a quarter of all such emissions.* Suntory Group also estimates that agriculture-derived GHG emissions account for about 20% of GHG emissions in its value chain, and is working to effect a shift to sustainable agriculture.
-
※IPCC 5th Report WG3 SPM
Barley
To reduce greenhouse gas (GHG) emissions originating in raw ingredients, Suntory Group is collaborating with malt supplier Muntons, agricultural consulting firm Future Food Solutions, and barley farmers, and implementing a range of initiatives in a project to procure barley for malting produced through regenerative agriculture*1 in the United Kingdom.
Through agricultural approaches such as the use of cover crops*2 and no-till farming, the project hopes to reduce GHG emissions from agriculture by 50% within five years while regenerating soil biodiversity, enhancing soil fertility, reducing chemical fertilizer and pesticide use, and using water more effectively.
-
*1Agricultural methods that focus on enhancing soil fertility by regenerating its ecosystem to make crop production sustainable
-
*2Cover crops that can enhance soil fertility by supplying organic matter to the soil, preventing erosion, etc.
Green Tea
To promote sustainable tea leaf procurement, the raw material for green tea beverages, Suntory Group has launched a long-term initiative in collaboration with tea farming areas.
By working with the Kuma Regional Agricultural Cooperative (JA Kuma) to introduce environmentally friendly tea farming processes, we have reduced GHG emissions by over 30%* compared to conventional processes.
In conjunction with the pursuit of high-quality tea production, we hope to go on contributing to stable succession and training of successors in tea farming regions.
-
*GHG emitted per weight unit during the production of green tea material, from raw leaves to rough tea
Blackcurrant
Suntory Beverage & Food Great Britain and Ireland has been conducting research on new, climate change-resistant species of blackcurrant. In July 2020, after years of research in collaboration with the James Hutton Institute, an agricultural research facility, we harvested a new climate change-resistant species, named Ben Lawers.
Wine Grapes
In collaboration with University of Yamanashi, Suntory Tominooka Winery has introduced a new, secondary-shoot cultivation technique for wine grapes. The daily temperature range normally begins to expand as nighttime temperatures start to drop around mid-July, causing the sugar content of grapes to increase as they ripen. However, climate warming has recently slowed the ripening process. In secondary-shoot cultivation, the tips of shoots that sprout in April are trimmed, and the resulting side shoots are nurtured. This shifts the start of ripening from mid-July to early September, when temperatures start to drop, and grapes are harvested in mid-November.
In other vineyard initiatives, we are promoting formation of soil rich in biodiversity by minimizing the use of pesticides and fertilizer. This boosts the population of microorganisms and beneficial insects in the soil and decreases the population of pests. We also store carbon by carbonizing pruned branches and mixing them into the soil.
For more information on our raw material initiatives, see Supply Chain Management
Container- and Packaging-related Initiatives
Suntory Group aims to eliminate the use of fossil-derived materials in PET bottles by switching to 100% recycled or plant-derived materials for all PET bottles used by the Group by 2030. We are promoting initiatives based on the Group's unique 2R+B (Reduce, Recycle + Bio) strategy, which aims to reduce the amount of plastic used in bottles by making them lighter (Reduce), recycling them as a resource (Recycle), and utilizing biomass-derived resources (Bio). The development of weight reduction and recycling technologies has produced a reduction in CO2 emissions.
In particular, “bottle-to-bottle” horizontal recycling*1 allows PET bottles to be recycled in Japan multiple times as a resource, reducing CO2 emissions by approximately 60%*2 relative to manufacturing PET bottles from new fossil-based raw materials. As of May 31, 2024, our use of new fossil-based raw materials was 300,000 tons less than it would have been had we not utilized horizontal recycling.
-
*1Recycling used PET bottles into new PET bottles
-
*2With respect to the process from used PET bottles to preform manufacturing
Initiatives in Logistics
Suntory Group is working to reduce the environmental impact of its logistics operations, including transport and delivery operations and warehouse operations.
We are working to shorten transport and delivery distances traveled from plants to customers by promoting local production for local consumption, maximizing utilization of large vehicle load capacity, and switching to next-generation fuels and transport modes with lower GHG emission levels.
In warehouse operations, we are working to shorten operating hours and reduce power consumption.
During 2023, sales (KL) expanded by 4% over the previous year. GHG emissions rose 2% to 154,000 CO2-tons* while the basic unit was 22.5 CO2-ton/thousand KL sold.
Reducing GHG Emissions with a Modal Transport Shift
1.Enhancing the modal shift rate
We are promoting a modal shift to rail and ocean transport, which emits less GHG than trucks. The 2023 modal shift rate rose over the previous year.
2.Enhancing usage of fuels with less GHG emissions
To encourage our transportation partners to use next-generation fuels that emit less GHGs than conventional fuels, we identified issues for expanded use in the future and are engaged in discussions for solving those issues. The next-generation fuels were introduced in 2022, and we used them at roughly the same levels in 2023.
Collaborative Efforts with Logistics Affiliates
136 of our logistics affiliates (as of2023) have acquired certifications, such as the ISO14001 and Eco Stage as well as Green Management advocated by the Ministry of Land, Infrastructure, Transport and Tourism, with the aim to further reduce the environmental impact. In addition, in response to amendments to the Rationalization in Energy Use Law, Suntory Group collected GHG emissions data such as the monthly distance driven by vehicles, the amount of fuel consumed, and the useful load of logistics affiliates.
Collaborative Efforts with Other Companies
We are partnering with other companies for reducing environmental impact in logistics through joint distribution and joint use of containers.
| Coordination | Description | Starting from | Results |
|---|---|---|---|
| NISSIN FOODS HOLDINGS CO., LTD. | Joint transport in the Obihiro area of Hokkaido | June 2017 | Approximate annual GHG reduction of 50 tons (Total figures for both companies) |
| Four major beer companies in Japan | Joint distribution in some areas of Hokkaido (Kushiro/Nemuro) | September 2017 | Reduction of approximately 330 tons of GHG emissions per year (*Figures apply to all four beer companies) |
| Four major beer companies in Japan | Joint distribution for transport between Kansai/Chugoku area and Kyushu area | April 2018 | Reduction of approximately 1,500 tons of GHG emissions per year (*Figures apply to all four beer companies) |
| Four major beer companies in Japan | Joint collection of beer pallets | November 2018 | Reduction of approximately 4778 tons of GHG emissions per year (*Figures apply to all four beer companies) |
| Unicharm Corporation | Joint use of railway containers between Shizuoka area and Fukuoka area | February 2021 | Reduction of approximately 2 tons of GHG emissions per year (*Total figures for both companies) |
| Daio Logistics Co., Ltd. | Joint Kanto-Kansai transport | August 2022 | Approximate annual GHG reduction of 115 tons (*Two-company total) |
| Daio Logistics Co., Ltd. | Parties share one-way rail containers | August 2022 | Approximate annual GHG reduction of 100 tons |
| Daio Logistics Co., Ltd. | Railroad Container Round-trip Utilization between Kanto and Shikoku | June 2023 | Approximate annual GHG reduction of 31 tons |
| Japan Freight Liner Company | Utilization of ocean 40ft containers for return trips | July 2023 | Approximate annual GHG reduction of 89 tons |
Reducing Environmental Impact of Sales Vehicles and Vehicle Accidents
We are proactively saving energy by replacing most of the vehicles used in our sales activities with hybrid vehicles.
In addition, by introducing vehicle operation management systems and drive recorders that can acquire driving data such as driving distance, driving behavior, and fuel efficiency in sales vehicles. We promote safe driving and eco-driving by feeding back the result of the analysis of collected data.
Energy Conservation in Vending Machines
We are implementing various initiatives to save energy in vending machines in Japan as one of priority initiatives to reduce GHG in the entire value chain.
Key Features of Suntory Vending Machines
What is a heat-pump vending machine?
A heat-pump vending machine in Japan is a vending machine with a built in system to collect heat generated by the cooling chamber for the heating chamber. These vending machines largely contribute to energy saving through function to effectively use heat inside the vending machine and latest machine can even exchange heat with the atmosphere.
-
Vending machines prior
to heat-pump type -
Heat-pump vending machine
Ensuring Reasonable Waste Disposal of Vending Machines
We are leading the industry in building a Vending Machine Waste Disposal System that collects and recycles vending machines to throw away, which we have expanded nationally since January 1997. We are strictly managing disposal from the initial selection of vending machines to discard to the final disposal in compliance with the revisions to the Wastes Disposal and Public Cleansing Act in April 2001. We are properly processing broken machines by understanding the amount of machines to collect based on the Act for Rationalized Use and Proper Management of Fluorocarbons even in regards to the fluorocarbons that are used as a refrigerant in vending machines.
Strategies for Adapting to Global Warming
To better adapt to climate change, we are expanding our portfolio of heat stroke-prevention beverages* and conducting educational initiatives relating to heat stroke at supermarkets and other in-store environments, as well as heat stroke prevention classes for elementary school students.
-
*The Ministry of Health, Labour and Welfare's recommended salt equivalent for beverages to prevent heat stroke is 0.1 g to 0.2 g/100 ml.
Participation in Initiatives
SBT Initiative Certification
Suntory Group has signed the “Business Ambition for 1.5℃,” a campaign led by the Science Based Targets initiative*1 in partnership with the UN Global Compact and the We Mean Business*2 coalition to hold global temperature increases to 1.5℃ above pre-industrial levels.
Suntory Group has had its 2030 emissions reduction targets approved by the Science Based Targets initiative as consistent with levels required to meet the goals of the Paris Agreement.
-
*1The SBTi is a partnership between CDP, the United Nations Global Compact, World Resources Institute (WRI) and the World Wildlife Fund for Nature (WWF). It drives ambitious climate action in the private sector by enabling companies to set science-based emissions reduction targets.
-
*2We Mean Business is a global nonprofit coalition working with the world's most influential businesses to take action on climate change. Together they catalyze business leadership to drive policy ambition and accelerate the transition to a zero-carbon economy.
Endorsement of Task Force on Climate-related Financial Disclosures (TCFD) Recommendations
Suntory Group has declared its Endorsement of Task Force on Climate-related Financial Disclosures (TCFD) recommendation, which was established by the Financial Stability Board (FSB).
In addition, we conducted scenario analysis for climate change according to the recommendations of the TCFD and learned about the possibility that climate change will have a significant impact on the crops that are Important ingredient to Suntory Group. From here on, we will do further advance scenario analysis and expand disclosure of information related to the risks and opportunities that climate change poses to business.