Sustainability2030（Mid-Long Term Sustainability Plan）

We launched “Sustainability2030”, a mid-long term sustainability plan to achieve our Materiality from April, 2021.

The Sustainability2030 will end in 2030, segregating 3 year each, 3phases.

To make steady and sustainable growth in a long term, we will make every possible effort following this plan.

No	Subject	Strategy		Target	Objectives of each phase
No	Major items: Materiality	Sub-items	Minor items	Activities	Phase2(2024～2026)
1	Climate Change	Business strategy following TCFD recommendations	Adaptation to climate change	Regularly scenario analysis	Review scenario analysis for each phase
1	Climate Change	Business strategy following TCFD recommendations	Mitigation to climate change:Reducing GHG emission ⇒「2.Reduction of Environmental impact」	Having a target following SBTi by various plans to reduce GHG emissions	Conidering setting GHG emissions reduction targets that meet the 1.5°C standard in accordance with customer requests Planning and promotion of emission reduction plan
2	Reduction of Environmental Impact	Sustainable resource use	Implementation of renewable energy	Promoting adoption of renewable energy	Switching 30% of total electricity usage to renewable energy-derived electricity by 2030
			Implementation of renewable energy	Promoting adoption of renewable energy	Increase the ratio of renewable electricity in electricity consumption　 -Increase the ratio of purchased electricity from renewable energy sources (including on-site solar power generation)
			Reduction of energy usage and GHG emissions	Absolute GHG emission reduction targets according to SBTi Criteria Energy Intensity Reduction Target per ton Production Efficient process of production Reduction of GHG leakage(EX: refrigerant) Introducing Carbon Pricing System	Achieving SBTi targets : 27.5% GHG emissions reduction by 2030 vs. 2019
			Reduction of energy usage and GHG emissions		Reduction of GHG emissions by reducing the use of fossil-derived fuels Systematic renewal of refrigeration equipment using CFCs and HCFCs as refrigerants Reduction of energy consumption per unit production
			Reducing water usage	Research and Development about the Technology of Reducing Water Use Water Usage Reduction Target Optimization of Water Use, Considering How to Reuse and Recycle water Compliance with Local Regulation Water Risk Assessment on a regular basis Engagement with local communities for cultivation of water resource	10% reduction of absolute water withdrawal by 2030 vs. 2020
			Reducing water usage		Promote effective and efficient use of water resources Reduction of water withdrawal
			Reducing amount of waste	Prevention of disposal products	Reduction of waste due to noncompliance and underutilization
		Prevention of pollution	Chemical management	Implementation and promotion of voluntary management standards Storage condition and inventory management Reduction of chemical usage	Appropriate management of chemical substances to be controlled by the Takasago Group (manufacturing sites in Japan)
			Prevention of air pollution	Understanding the quantity & density of air pollutants in accordance with local law regulation.Reduction of VOC emissions	Compliance with legal standards
			Wastewater management/Leakage prevention	Monitoring the quality and quantity of effluent Monitoring legal compliance Conducting the measures to prevent the leakage of pollutants	Research and verification on prevention of off-site leakage at overseas sites
			Prevention of soil and groundwater pollution	Conducting the measures to prevent the leakage of pollutants Monitoring the quality of groundwater on-site	Continuation of management in accordance with laws and regulations Implement measures to prevent leakage
			Waste management	Reduction of waste generation Increase of recycling rate Decrease of final disposal rate	5% reduction of waste generation by 2030 vs. 2020Final disposal rate <0.5% of total waste generation by 2030*Applicable for waste generated from routine process.
			Waste management		Reduction of industrial waste sent to landfill Promote effective utilization of industrial waste Implement third-party verification of waste data
			Odor management	(if applicable) Law compliance Odor management such as patrol, implementation of appropriate deodorizing equipment, and etc.	Continuous of smell management
		Protection of the environment, biodiversity and restoration of natural habitats		Refer to "Prevention of Water Pollution", "Responsible Sourcing", "Local community"	ー
3	Occupational Health and Safety	The implementation of Occupational Safety	Compliance	Development of EHS compliance management Implementation of EHS compliance check	EHS compliance -Management by regulatory control system at each site
			Risk assessment	Perform RA based on OHS Risk Assessment Rule Prioritize risks and implement countermeasures	Improve the level of health and safety management by promoting risk assessment
			Incident prevention,root cause investigation and countermeasures	Identifying potential emergency situation (risks) associated with environmental aspect and OHS risks.Establish emergency response procedures for identified risks and perform periodic testing and exercises. Validate past incidents Establishment of effective incident root cause investigation method	Prevent recurrence of experienced industrial incidents/accidents by improving skills in accident investigation and root cause identification
			Emergency response	Identifying potential emergency situation (risks) associated with environmental aspect and OHS risks. Establishment of emergency response procedures for identified risks and perform the periodic testing and exercise to review effectiveness of procedures.	Promote response based on the “Minimum Standards for Rescue Response in Oxygen Deficiency Hazardous Workplaces" Improve emergency response to fires.
			Chemical Handling	Compliance with legal requirements. Exercise appropriate chemical handling based of corporate rules.	Appropriate management of chemical substances to be controlled by the Takasago Group (manufacturing sites in Japan)
			Machine Safety	Identifying any risks which is exposed to crushing, caught-between, cutting risk of body parts.Implement engineering controls for equipment which is exposed to crushing, caught-between, cutting risk of body parts (i.e. rotation part). Establish LOTO rules	Operational Enhancements of the lockout/tagout rule
			Fire Safety	Establishment of static electricity management standard	Enhancement and operation management of static electricity safety guidelines Appropriate operation of static electricity safety guidelines through familiarization and education
			EHS Training	Establishment of EHS training program	Develop and implement training program plans for EHS-related personnel, including HQ EHS Department staff
		The implementation of Occupational Health	Work environment management	Implement measurement of working environment periodically to assess exposure of workers to hazardous substance based on legal, corporate or voluntarily requirement. Improve work environment given the result of measurement of working environment if needed	Continuous measurement of the working environment to ascertain employee exposure to hazardous substances in accordance with legal requirements (including issues required by revised laws and regulations). Improve work environment given the result of measurement of working environment if needed.
			Work management	Define and provide appropriate control based on legal requirement and the result of risk assessment	Implementation of appropriate work management for workers based on laws, regulations, and good practices, and continuous improvement of the work environment.
			Improve work-life balance	Promoting mental health and wellness measures to support a balance between work and home	Reduce the number of people with unwellness caused by mental illness.
4	Local Communities	Participation in local communities		Developing "Annual plan about CSR activities" on each site	Promoting through Global HR meeting Considering an incentive system
		Educational/Cultural activities	Educational activities	Developing "Annual plan about CSR activities" on each site
			Development and inheritance of scent culture	Operation of the Takasago Collection	ー
			Development and inheritance of scent culture	Cooperation with exhibitions and museums related to fragrance & flavor	ー
5	Green Chemistry	Promotion of eco-friendly R&D guided by the twelve principles of green chemistry	Development of eco-friendly technologies and products	Development of catalysts and reactions that reduce environmental impacts	Promoting switch from stoichiometric reactions to catalytic reactions Researching the development of catalysts and reactions which lead to improvements in productivity
				Process development with lower environmental impact	Developing processes which promote energy savings and waste reduction Expanding the scope of continuous flow processing
				Development of fragrance & flavor materials utilizing renewable raw materials and resources from waste	Development of eco-friendly fragrance & flavor materials derived from renewable resources Development of high value products utilizing resources from waste
			R&D activities driven by the Bioeconomy	Increased focus on biotechnology	Expanding use of biotechnology in the development of fragrance & flavor materials Strengthening our manufacturing capabilities for products derived from biotechnology
6	Responsible Sourcing	Implementation of responsible sourcing (Procurement division)	Implementation of "Responsible Sourcing Policy"	Confirmation of acknowledgement on Takasago Supplier Code of Conduct & Responsible sourcing policy with suppliers	Receive acknowledgement from newly registered suppliers
				Confirmation of suppliers' compliance with Takasago Supplier Code of Conduct & Takasago Responsible Sourcing Policy requirements.	Compliance of all of "high priority raw material" suppliers by the end of 2026.
				Audit of "high risk" suppliers against Takasago Responsible sourcing policy requirements	Audit all "high risk" suppliers of "high priority raw materials" by the end of 2026.
				Improvement of supplier relationship by utilizing Sedex	By the end of 2026, increase the number of Sedex members linked with Takasago by 3 times (baseline 2020) , reaching to 45% of all suppliers.
			Sourcing information management on raw materials	Promoting database management Conducting risk assessment for environment	Expand the range of data Preparation for Global SAP
			Responsible sourcing for environment	Improvement of global logistics continuously Continuous improvement of global logistics Focus on environmentally friendly packaging	Implement optimized purchasing methods. Consider the introduction of environmentally friendly containers
			(TACMI: Takasago global procurement Arts & Crafts Mutual Interaction) Enhancement of ECM	Source renewable ingredients: Enhance coordination with R&D	Promote registration of renewable raw materials through ECM
			Acceleration of TaSuKI (Takasago global procurement Sustainability Key Initiatives)	Takasago to become backward integrated self sufficient in highest priority raw materials	By the end of 2026, Takasago is backward integrated for the sourcing of 55% of "high priority 1 raw materials". (count of raw materials).
		Implementation of responsible sourcing(All divisions)		Confirmation of compliance with Corporate Procurement Policy	(if necessary)Revise the Supplier Code of Conduct (if necessary) Apply Supplier Code of Conduct to all divisions, not only Procurement DIvision (Japan as well as overseas) Confirm compliance with the Supplier Code of Conduct with supplier companies.”
7	Human Rights	Compliance with Human Rights Policy in corporate activities	Development of a scheme to review and improve our business flows by utilizing the 3rd party's knowledge	Participation and co-operation with initiatives	Continuation of SMETA audits at major sites and improvement based on audit results
				Employee training	Continuation / review of online training Participation in the seminar of the person in charge
			Conducting Human Rights Due Diligence	Conducting Human Rights Due Diligence on an annual basis	Conducting Human Rights Due Diligence continuously
			Conducting Human Rights Due Diligence	Conducting Human Rights Due Diligence on an annual basis	Conducting incentive assessments on high risk sites
8	Transparency	Disclosures of non-financial information	Enhancing the contents of information	Promotion of participation in initiatives	Participation in initiatives if needed
			Enhancing the contents of information	Promotion of expanding the scope in accordance with GRI standards in the Sustainability Report	Expansion of the scope in accordance with GRI standards
			Enhancing the information medium	Regularly disclosing sustainability activities on our webpage	Enhancing the contents of information on our webpage
				Publication of Sustainability Report on an annual basis	ー
				Publication of Integrated Report on an annual basis	ー
				Reporting sustainability activities on SNS	Disclosure our activities in a timely manner
		Disclosures of information such as environmental impacts by products	Conducting life cycle assessment for aroma ingredients products	Implementation of Life Cycle Assessment for several AI products (has a relation with 2.Reduction of Environmental Impact)	LCA implementation and external certification for targeted Aroma Ingridients products
			Conducting Sustainability ID score for fragrance products		Revise scoring methodologies and handle system modifications as needed.

Category and Activities are revised as necessary. This page shows the latest information.