Suntory | Sustainability | CSR Initiatives | To Create Harmony with Nature: Environment | Environmental Management

Environmental Management Promotion System

With the awareness that coexistence with nature is one of the most important issues facing all of humankind, back in 1991 the Suntory Group established the Environmental Department and Environment Committee. In 2010, Suntory Holdings Ltd. created the Environmental Sustainability Strategy Department, whose purpose is to ensure that business and ecology are promoted by the entire Group. The Division seeks to reinforce environmental management at Group companies based on the Basic Principles of Suntory's Environmental Policy. The Global Communication Committee established in April 2016 set the construction of a global environmental management system as an important theme in addition to strengthening environmental management at Group companies in Japan. This committee aims to help improve sustainability throughout the entire value change of every corporate activity, including the business activities, of the Suntory Group through the formulation of the Sustainability Strategy Department, which evolved from the Eco Strategy Department, in April 2017 while restructuring the Sustainability Promotion Department, which promotes sustainable management, in April 2018.

Suntory Group's Environmental Management Promotion System

Promotion of ISO14001 Certification Acquisition Throughout the Group

We have actively advanced the acquisition of the international ISO14001 certification standard at each Group company as one method to continually evolve by integrating business and environmental activities. With the completion in acquiring the integrated certification and the start of operations at Group companies^* in Japan, we are working to enhance management to abide by laws at sites with a low environmental burden and conduct even more efficient environmental management with these sites as targets from 2017. We are in the process of obtaining certifications at overseas Group companies with focus on our production sites. We are 69% complete in certifying overseas Group company production sites as of 2017.
We are enhancing the links between each department involved with the value change of businesses at each Suntory Group company to promote business activities from an environmental perspective in all stages from the procurement of ingredients to disposal.

*

Group companies complying to the Japanese SOX Act

Initiatives at production sites

We have also successively advanced the acquisition of the ISO14001 certification since 1998 at production sites and have acquired the comprehensive certification as of today. We are deploying activity examples horizontally and taking both auditors and auditees to the next level by dispatching bilateral internal auditors while appointing auditors at each site as internal ISO14001 auditors. We are also progressing with the acquisition of certifications even at production plants of overseas Group companies.

Initiatives at Research and Development Sites

We have acquired the ISO14001 certification in 2007 even at research and development sites to accelerate environmentally-friendly initiatives from the research and development stage even further in order to strengthen environmental management throughout the entire value chain.

Initiatives at the Headquarters and Sales Offices

We have completed the acquisition of the ISO14001 certification at all headquarters and sales departments at Suntory Group companies in Japan. We are also building a PDCA system to reflect the Basic Principles of Suntory Group's Environmental Policy in the operational objectives of each department and periodically feedback the results of activities to top management.

Initiatives at Restaurant-related Group Companies

We are acquiring the ISO14001 integrated certification for the headquarters and all stores at restaurant-related Group companies who are increasing their number of establishments in Japan in an effort to save energy and water, reduce food loss, and enhance recycling.

ISO14001 screening

Introducing Environmental Accounting

We use and disclose the content of environmental accounting that conforms to the 2005 Environmental Accounting Guidelines of the Ministry of the Environment. Environment accounting serves as an important tool for periodic quantitative evaluations of our environmental conservation initiatives in our business activities.

Suntory Group's Environmental Accounting (total of business in Japan)

(Period: January 1 to December 31, 2017)

(million yen)

Item			FY2016		FY2017
Item			Environmental investment	Environmental costs	Environmental investment	Environmental costs
Business area cost	Pollution prevention cost	Preventing water pollution Air pollution prevention cost, etc.	261	1,903	326	2,001
	Global environmental preservation cost	CO₂ reduction Energy conservation Cogeneration Air treatment, etc.	871	3,491	266	3,444
	Resource circulation cost	Conserving water through recirculation Reducing sludge Reusing waste Wastewater treatment cost, etc.	17	2,807	67	2,612
	Total		1,148	8,201	659	8,058
Upstream and downstream Cost	Commission for resource recycling containers and packaging Environmentally-friendly containers and packaging measures		0	1,195	0	1,133
Management activities costs	Building and maintaining Environmental Management System CSR Reports, Exhibits Factory greenification, etc.		0	1,128	0	670
Research and development costs	Research and development activities to reduce environmental impact		73	323	1	369
Social activities costs	Suntory Natural Water Sanctuary Bird Conservation Activities Suntory Mizuiku - Natural Water Education Program, etc.		86	410	90	569
Environmental damage response cost			0	0	0	0
Total			1,307	11,258	751	10,798

*

Amount of investment: Reason for investment was 50% or more for preserving the environment, all amount is considered as environmental investment (inspection basis)
*

Amortization expense: Expenses for investment from 2003 and afterwards which 50% or more is intended for environmental preservation are calculated.
*

In general, all cost for management and research activities are directly confirmed. Costs that are difficult to confirm directly are prorated and allocated based on a past survey of each procedure.

Environmental Preservation Effect of Suntory Group (production sites in Japan)