The natural environment is an essential foundation for our business. Suntory Group promotes environmental management and actively engages in activities to pass down a sustainable society to the next generation.
Basic Stance on Group's Environmental Activity
The circular system consisting from plants and forests nurtured by water, rivers, oceans, atmosphere, and the ecosystem made by living things are the basis of all life.
As a company that delivers the blessings of water and nature to our customers, we believe that protecting beautiful and clean water with healthy ecosystems, using them appropriately, and replenishing to nature is a great responsibility.
Ingraining this concept in every part of the Group, Suntory strives to build a prosperous and sustainable society by preserving and regenerating the natural environment and reducing environmental impact.
Suntory Group’s Environmental Principles
Suntory Group sets principles that clearly indicate our prioritized environmental initiatives such as achieving water security, conserving and regenerating biodiverse ecosystems, promoting a circular economy and transitioning to a net zero carbon society (established 1997, revised 2022.) To achieve a vibrant global environment, we are championing the transformation to a sustainable society by collaborating with our stakeholders, deepening dialogues with local communities, and transparently disclosing our progress.
Suntory Group's Environmental Principles
At Suntory Group, environmental management is at the core of our business strategy.
In our commitment to cultivating a sustainable and vibrant society now and in the future, these environmental principles inform the actions we take each day across our entire value chain.
1. Achieving water security
Water is the most vital resource for our business. At Suntory, we aim to become net water positive by using water carefully and localizing water stewardship to contribute to nature’s healthy water cycle.
2. Conserving and regenerating biodiverse ecosystems
Thriving water and agricultural systems are crucial to our business. We strive to protect and regenerate biodiversity through local water source conservation and sustainable agricultural practices.
3. Promoting a circular economy
To effectively reduce waste and efficiently utilize limited resources, we imbed sustainable principles throughout the lifecycle of our products, promote the 3Rs (reduce, reuse, recycle) for all raw materials, use renewable resources when available, and collaborate with stakeholders to build a fundamentally circular system.
4. Transitioning to a net zero-carbon society
In the face of climate change, we are doing our part to achieve a net-zero carbon society by reducing greenhouse gas emissions across our value chain.
5. Engaging with society
To achieve a vibrant global environment, we are championing the transformation to a sustainable society by collaborating with our stakeholders, deepening dialogues with local communities, and transparently disclosing our progress.
Environmental Vision toward 2050 and Environmental Targets toward 2030
The Suntory Group established the Environmental Vision toward 2050 and Environmental Targets toward 2030 to provide clear direction to our environmental management. As we engage in greater efforts to address global issues and work toward the realization of a sustainable society, In April 2021 we revised the greenhouse gas (GHG) reduction targets in the Environmental Targets toward 2030, and in December 2021, we revised our water targets.
Environmental Vision toward 2050
The Suntory Group has formulated the vision below toward 2050 for the purpose of passing down a sustainable global environment to the next generation around the pillars of water sustainability and climate change measures as a company in harmony with people and nature.
1. Water Sustainability
-
-Reduce the water intensity*1 of production at our owned plants*2 by 50%*3 globally.
-
-Replenish more than 100% of water used at all of our owned plants*2 globally through conservation of the surrounding ecosystem.
-
-Achieve sustainable water use for all key ingredients.
-
-Share the Sustainable Water Philosophy to the communities where our business operates.
2. Climate Change Measures
-
-Aim for net zero greenhouse gas emissions across the whole value chain by 2050
Continue to promote energy conservation, proactively implement renewable energy solutions, utilize next-generation infrastructure options and work together with stakeholders across the value chain in order to contribute to realizing a decarbonized society
-
*1Water intensity is the amount of water withdrawn per unit of production, which is 1 kiloliter of production
-
*2Owned plants that manufactures finished products and excludes plants for packaging and ingredients
-
*3Reduction of water intensity of production based on 2015 baseline
Environmental Targets toward 2030
We have set the following Environmental Targets toward 2030 to achieve the Environmental Vision toward 2050.
1. Water
Reduction of water used in direct operation
Reduce the water intensity*1 of production at our owned plants*2 by 35%*3 globally. In addition, explore reduction of absolute amount of water withdrawn in highly water stressed areas
Water replenishment
Replenish more than 100% of water used in at least 50% of our owned plants*2 globally, including all those
in highly water stressed areas, through local water source conservation efforts.
Sustainable water use in raw ingredients
Collaborate with suppliers to improve water-use efficiency in the production of water-intensive key ingredients*4 in highly water stressed areas.
Water education and access to safe water
Expand water education programs and initiatives to provide safe water access for more than 1 million people.
2. Greenhouse gas (GHG)
-
-Reduce GHG emissions from our direct operations by 50%*5
-
-Reduce GHG emissions across our entire value chain by 30%*5
-
*1Water intensity is the amount of water withdrawn per unit of production, which is 1 kiloliter of production
-
*2Owned plants that manufactures finished products and excludes plants for packaging and ingredients
-
*3Reduction of water intensity of production based on 2015 baseline year
-
*4Coffee, barley, grapes
-
*5Based on emissions in 2019
Accelerating Efforts to Reduce GHG Emissions by 50% by 2030
Suntory group will aim to achieve 100% renewable electricity in the group’s 63 directly-owned manufacturing sites and R&D facilities in Japan, the Americas and Europe by 2022*1.
From April 2022, the company have purchase 100% renewable electricity for all 30 directly owned manufacturing sites and R&D facilities in Japan.
This will amount to a reduction equivalent to approximately 150,000 metric tons of greenhouse gas (GHG) emissions per year*2, which will greatly contribute to meeting the company’s 2030 goal of halving GHG emissions in its direct operations*3.
In addition, the company have started introducing internal carbon pricing to its group companies in 2021 and plans to invest a total of approximately 100 billion JPY (equivalent to approximately 900 million USD*4) by 2030 to shift to low-carbon alternatives.
The company estimates that these actions together will amount to a reduction of approximately 1 million tons of greenhouse gas (GHG) emissions in its direct operations compared to a business-as-usual projection for 2030.
-
*1For its alcohol and non-alcohol beverage business
-
*2Based on 2020 emissions level
-
*3Total reduction versus 2019 baseline in scopes 1 and 2
-
*4Exchange rate 1 USD = 110 JPY as of June 2021
SBT Initiative Certification
The 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.
The Suntory Group has had its emissions reduction targets approved by the Science Based Targets initiative as consistent with levels required to meet the goals of the Paris Agreement.
The targets covering greenhouse gas emissions from Suntory group’s operations (scopes 1 and 2) are consistent with reductions required to keep warming to 1.5℃, the most ambitious goal of the Paris Agreement. Suntory Group’s target for the emissions from its value chain (scope 3) meet the SBTi’s criteria for ambitious value chain goals, meaning they are in line with current best practice.
-
*1The SBTi is a partnership between CDP, the United Nations Global Compact, World Resources Institute (WRI) and the World Wide 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.
Declaration of Approval of Task Force on Climate-related Financial Disclosures (TCFD) Recommendations
The Suntory Group has declared its approval of Task Force on Climate-related Financial Disclosures (TCFD) recommendations. The TCFD 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 ingredients important to the Suntory Group. From here on, we will further advance scenario analysis and expand disclosure of information related to the risks and opportunities that climate change poses to business.
Disclosures Based on Task Force on Climate-related Financial Disclosures (TCFD) Recommendations