Our Policies and Approach
Global warming affects water resources and raw materials, which are central to Suntory Group's beverage business, making climate change a critical issue for our business continuity. Suntory Group has set a 1.5°C target to limit the rise in global average temperatures to 1.5°C above pre-industrial levels. To achieve this, we seek to decarbonize our entire value chain, from the production process for raw ingredients and product manufacturing to the delivery of products to consumers. We are working together with various stakeholders, including business partners in raw materials, manufacturing, and logistics, as well as our customers to promote climate action measures as a unified group.
Additionally, following the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD), we conduct long-term scenario analyses and incorporate evaluations of the risks and opportunities climate change poses to our business into our management strategies.
For example, we have identified key risks such as increased costs from the introduction of a carbon tax, insufficient water resources at production sites, and increased procurement costs for raw ingredients due to declining agricultural yields. In response, we have implemented measures such as the use of internal carbon pricing, capital investment, and water replenishment initiatives.
At the same time, we recognize opportunities for increased demand for beverages that prevent heatstroke due to rising temperatures and improved brand value through water resource conservation. These opportunities are being leveraged to drive business growth through the strengthening of our product portfolio and the continuation of water source protection activities.
Promoting Structure
Global Sustainability Committee
To promote environmental management at Suntory Group, we have established a system centered around the Global Sustainability Committee (GSC). Under the supervision of the Chief Sustainability Officer, GSC formulates strategies related to the 7 key themes of sustainability, which include water, climate action, raw ingredients, containers and packaging, health, human rights, and lifestyle culture. GSC also oversees the progress of these strategies and analyzes the business risks and growth opportunities, reporting to the Board of Directors on a quarterly basis.
For more information on the Global Sustainability Committee, see Environmental Management.
Targets and Progress
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*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 approximately 100 billion yen from 2021 to 2030 to promote decarbonization. This investment is expected to reduce GHG emissions by about 1 million tons by 2030.
Furthermore, without sufficient decarbonization measures, it is estimated that additional costs of up to about 9.5 billion yen by 2030 and about 35 billion yen by 2050 could be incurred due to the introduction or strengthening of carbon taxes in various countries. To mitigate these financial risks, we are pursuing a strategy of investing in decarbonization and utilizing internal carbon pricing to achieve the reduction targets set out in our Environmental Targets toward 2030 in order to avoid the risk of mid- to long-term cost increases.
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 alcohol and non-alcohol manufacturing sites and R&D facilities in Japan, the Americas, and Europe. This contributes to an annual reduction of approximately 230,000 tons* of GHG emissions.
In addition to procured power, we are actively installing solar panels and introducing biomass boilers to generate renewable energy in-house.
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*Based on power procured, 2023
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Suntory Minami Alps Hakushu
Water Plant -
Suntory Kita Alps Shinano-no-Mori
Water Plant -
Carcagente Plant (Spain)
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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,” which does not emmit CO2 during the hydrogen production process.
The green hydrogen produced will be used as fuel for heat energy at our Hakushu facilities. Additionally, we plan to explore and implement the utilization in the surrounding communities in collaboration with Yamanashi Prefecture.
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Suntory Minami Alps
Hakushu Water Plant and
Suntory Hakushu Distillery -
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 such as Iwanohara Vineyard and Suntory Okudaisen Bunanomori Water Plant, which take advantage of their locations’ heavy snowfall by using “snow rooms” that store winter snow throughout the year.
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Gunma Brewery
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Suntory World Research Center
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Snow room at Suntory Okudaisen Bunanomori
Water Plant
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,) became Suntory Group’s first net-zero CO2 emissions plant in Japan through adoption of solar power generation facilities and boilers which use biomass fuel, electric power procurement derived from renewable energy as well as offsetting.
Suntory Kita Alps Shinano-no-Mori Water Plant has achieved carbon neutrality and is the first non-alcoholic beverage factory in Japan to acquire ISO 14068-1, an international standard.
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. Greenhouse gas (GHG) emission reductions are being promoted in each office through Cool Biz and Warm Biz campaigns and proactive use of web conferencing.
Suntory Hall and Suntory Museum of Art Purchase 100% Renewable Electricity
Purchased energy at Suntory Hall and Suntory Museum of Art is 100% renewable energy.
Through these efforts, the two facilities have been able to reduce CO2 emissions by approximately 900 tons per year compared to the past.
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Suntory Hall
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Suntory Museum of Art
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 monitor the status of CO2 emission reduction targets set by major business partners and are considering policies for future procurement initiatives.
We are also working with our suppliers to decarbonize the value chain throughout the Group. Each year, we hold GHG reduction policy briefing sessions for our major suppliers of packaging materials and raw ingredients to share the Group's policies and to support the formulation of reduction plans and the introduction of renewable energy at each company. We are accelerating the reduction of Scope 3 emissions through collaboration with such business partners.
Raw Ingredient-related Initiatives
The gifts of nature, including 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 our value chain, and is working to effect a shift to sustainable agriculture.
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*IPCC 5th Report WG3 SPM
Barley
To reduce GHG emissions originating from raw ingredients, Suntory Group is collaborating with malt supplier Muntons, agricultural consulting firm Future Food Solutions, and barley farmers to implement 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.
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*1Agricultural methods that focus on enhancing soil fertility by regenerating its ecosystem to make crop production sustainable
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*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.
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*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 the 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
Initiatives in Containers and Packaging
Suntory Group aims to eliminate the use of virgin petroleum-based materials in PET bottles by switching to 100% recycled or bio-based derived materials for all PET bottles used by the Group by 2030. We are conducting activities based on our unique 2R+B (Reduce, Recycle + Bio) strategy to reduce the amount of plastic used by reducing the weight of containers (Reduce), recycling containers for use as a resource (Recycle), and using bio-based material (Bio). The development of weight reduction and recycling technologies has produced a reduction in CO2 emissions.
In particular, in Japan, “bottle-to-bottle” horizontal recycling*1 allows PET bottles to be recycled multiple times as a resource, reducing CO2 emissions by approximately 60%*2 relative to manufacturing PET bottles from virgin petroleum-based materials. As of May 31, 2024, our use of virgin petroleum-based materials was 300,000 tons less than it would have been had we not utilized horizontal recycling.
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*1Recycling used PET bottles into new PET bottles
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*2Processes from used PET bottles to the preform production
Initiatives in Logistics
Suntory Group is working to reduce the environmental impact of our 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 2024, sales (KL) are 100% of the previous year. GHG emissions are also 100% of the previous year at 158,000 [CO2-ton] 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. Even as we promote local production and consumption to reduce total transport distances, we have been able to maintain a high modal shift rate.
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 2024.
For more information, see Introduction of Renewable Fuels in Truck Transport in Japan.
Collaborative Efforts with Logistics Partners
To further reduce environmental impact, Suntory Group calculates GHG emissions based on data such as logistics partners' mileage, fuel consumption, and loading volume, and uses this information to formulate specific reduction measures. Through regular meetings, we collaborate by sharing examples of activities and exchange opinions to promote improvements. Our logistics partners are also working to obtain external certification for environmental management.
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) |
| 4 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) |
| 4 major beer companies in Japan | Joint use of railways 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) |
| 4 major beer companies in Japan | Joint collection of beer pallets*1 *1 News Release
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November 2018 | Reduction of approximately 4,778 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*2 *2 News Release
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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 |
| Unicharm Corporation | Round-trip transport using the relay method | April 2024 | Annual GHG reduction of 223 tons (figures for both companies combined) |
| Daikin Industries, Ltd. | Round-trip transport using double-articulated trucks*3 *3 News Release
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July 2024 | Annual GHG reduction of 68 tons (figures for both companies combined) |
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
Suntory Group is implementing various initiatives to promote energy conservation in vending machines for our domestic businesses to reduce GHG across the 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.
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Vending machines prior
to heat-pump type -
Heat-pump vending machine
Introduction of Carbon-Offset Vending Machines with Net-Zero GHG Emissions
In September 2024, we began rolling out carbon-offset vending machines that achieve net-zero GHG emissions. By acquiring a FIT Non-Fossil Certificate* equivalent to the annual electricity consumption required for operation, a carbon-offset vending machine is deemed to have used electricity derived from renewable energy, making it possible to offset the machine’s GHG emissions. POP displays on the vending machines that state "FIT Non-Fossil Certificate Obtained" and "Net Zero Greenhouse Gas Emission" emphasize that the vending machine contributes to reduced environmental impact on the planet.
- *Certificate for renewable energy sources such as solar, wind, small hydroelectric and biomass that are subject to FIT (Feed-in Tariff) schemes.
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 heatstroke-prevention beverages* and conducting educational initiatives relating to heatstroke at supermarkets and other in-store environments, as well as heatstroke prevention classes for elementary school students.
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*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.
The 1.5°C target is a science-based target to limit the increase in global average temperature to 1.5°C above pre-industrial levels.
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*1The SBTi is an international initiative jointly established by the United Nations Global Compact (UNGC), CDP (a coalition of institutional investors that promotes disclosure of information on climate change measures), World Resources Institute (WRI), and 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.
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*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 recommendations of the Task Force on Climate-related Financial Disclosures (TCFD), established by the Financial Stability Board(FSB).
Based on the TCFD’s recommendations, we conducted scenario analysis for climate change , identifying the risks and opportunities it poses to our business and estimating the potential financial impacts. We will continue to enhance the disclosure of related information going forward.
- *Abbreviation for the Task Force on Climate-related Financial Disclosures
