Supply chain managementMateriality
Our approach
In all of our business activities we must fulfill our social responsibilities as a corporate citizen by complying with laws, respecting human rights, considering the global environment and managing information securely.
To support the stable production and sale of products beneficial for health and activities toward a sustainable society, we have also made sustainable procurement a key theme within our CSR activities.
As sustainable procurement requires collective action with our business partners, we will communicate proactively and work together with partners, mitigating risks and considering social and environmental impact throughout the supply chain and improving the sustainability of society.
Keeping an eye on global trends and responding to change
At the 26th UN Climate Change Conference of the Parties (COP26) held in Glasgow, UK, in November 2021, the Glasgow Climate Pact and the Glasgow Leaders’ Declaration on Forests and Land Use were formulated, which called on companies to take action to reduce greenhouse gas emissions in their supply chains and conserve forests in order to combat climate change and protect biodiversity.
Meanwhile, problems related to procurement have been increasing due to the rising price of raw materials resulting from international turbulence and a sharp decline in the yen’s value. The realization of the social impact that supply chains have, as well as the attention they garner, and the expectations for them have never been greater.
We at the Yakult Group will re-examine our supply chain management and strive to make our supply chain and the Yakult business more resilient by fundamentally enhancing environmental and social sustainability.
Enhancing sustainability across the supply chain
As one example of the efforts made to realize the Yakult Group Environmental Vision, which details plans for a value chain with zero environmental impact, we converted all the energy purchased for our domestic dairy and pharmaceutical production sites to renewable energy in April 2022. Our cosmetics plant also switched to renewable energy in July of the same year, completing the switchover at all domestic plants. This will lead to an annual reduction of around 34,800 tons of greenhouse gas emissions.
We will continue to consider and implement actions to reduce our environmental impact, but we cannot achieve our Group’s goal of net zero GHG emissions without collaborating with our suppliers. In addition, human rights issues such as forced labor, child labor, discrimination and inhumane treatment in the supply chain are also important themes to be resolved. In order to address these issues, we believe it is very important use the CSR procurement survey and Supplier CSR Guidelines in communication with suppliers.
In October 2021, we held a briefing on our CSR Procurement Policy for our suppliers, with around 400 participants from 158 companies. This was a very meaningful opportunity to explain once again our CSR Procurement Policy and guidelines, share awareness of issues with our suppliers, and confirm our efforts to solve them.
Further promoting supply chain management
We will continue to improve the level of our own initiatives for CSR procurement, while implementing various approaches to enhance sustainability together with our suppliers. Specifically, we will consider and implement specific actions that include developing CSR procurement surveys for suppliers in Japan and overseas, utilizing international platforms, and establishing targets for raw material procurement. On the basis of these efforts, we will respond to the demands of society to build a sustainable supply chain, as a corporate group with global operations.
Akifumi Doi
Director and Senior Managing Executive Officer
Divisional General Manager of Production Division
Related SDGs
Working with our suppliers to promote sustainable procurement
The Yakult Group works with suppliers to promote sustainable procurement throughout the supply chain based on the Yakult Group CSR Procurement Policy, established in 2018, and the Yakult Group Supplier CSR Guidelines, established in 2020.
In fiscal 2021, approximately 400 people from 158 suppliers participated in our first CSR Procurement Policy briefing, held to provide them with information on sustainable procurement and promote their understanding of our CSR procurement policies and future plans. The event resulted in a shared recognition of various issues among our suppliers.
Yakult Group Supplier CSR Guidelines
Based on the CSR Procurement Policy, the Yakult Group Supplier CSR Guidelines were formulated in July 2020 in order to effectively promote sustainable procurement within the Group and help create a sustainable society. The guidelines are a collection of requirements regarding responsible procurement activities for all our business partners in Japan and overseas, including new business partners.
For each requirement in the guidelines, we check the status of our efforts through surveys and audits, and if any problems are found, we take appropriate measures for improvement.
Together with using these guidelines, the entire Yakult Group will continue striving to promote sustainable procurement.
Yakult Group Supplier CSR Guidelines
Translations of the Yakult Group CSR Procurement Policy
- Japanese
- English
- Chinese
(Traditional Characters) - Chinese
(Simplified Characters) - Korean
- Thai
- Indonesian
- Spanish
- Portuguese
- Burmese
Deforestation and Conversion Free (DCF) Commitment to Responsible Sourcing
The planet's environment is at risk due to global warming, environmental pollution, loss of biodiversity and depletion of natural resources. Based on the Commitment, we will pursue our business activities while considering the planet's environment and the lives and human rights of the people supported by the environment, and to create a society where people and the planet can coexist forever.
We have identified raw materials at risk of deforestation in our supply chain and are committed to promoting sustainable procurement of these materials, setting out our basic policy, initiatives and targets.
- Click here for the full text of the Commitment (PDF).
- Click here for the explainer video related to the Commitment.
×The explainer video related to Yakult's Deforestation Free Commitment
Initiatives and Targets/KPIs
We identify pulp and paper, palm oil, soy and dairy products (e.g. skim milk powder) as raw materials with a high-risk of deforestation, set Targets and KPIs for their sustainable procurement, and promote responsible procurement in our supply chain.
*The quantitative Targets and KPIs will be reviewed and updated as appropriate to improve ongoing efforts in the Commitment.
| Scope | All consolidated sites in Japan and overseas involved in the procurement of raw materials to produce food and beverages, pharmaceuticals and cosmetics for the Yakult Group |
|---|
| Commodities | Target fiscal year | Quantitative targets |
|---|---|---|
| Pulp and paper | 2025 | 100% of the paper and pulp procured for paper containers and packaging to be switched to internationally certified materials such as FSC® or recycled paper |
| Palm oil | 2025 | 100% of palm oil procured to be switched to RSPO-certified products (MB and above) |
| 2030 | 100% traceability of palm oil procured as a primary raw material back to the agricultural origin of its production | |
| Soy | 2030 | 100% traceability of soybean procured as a primary raw material back to the agricultural origin of its production |
| Dairy products | 2030 | 100% traceability back to the source, such as the dairy farmer, in collaboration with suppliers |
Progress report on the DCF Commitment
The Yakult Group is taking initiatives to verify Deforestation and Conversion Free in its supply chain.
Main initiatives
Raising sustainable procurement awareness
We are also conducting sustainable procurement promotion meetings and sustainable procurement workshops for our employees involved in raw material procurement and manufacturing consignment.
In fiscal 2021, training on sustainable procurement was provided to a total of 72 persons responsible for or involved with CSR procurement promotion at the Yakult Group’s overseas offices, as well as officers and employees of the department in charge of overseas offices at Yakult Honsha.
Supporting communities with local employment and sourcing
To contribute to the sustainable development of the countries and regions where we operate, we conduct our global business with a local focus based on local production and sales using raw materials that can be stably procured and satisfy our product quality and safety standards.
Yakult currently operates in 40 countries and regions including Japan, with 29 overseas companies. We have established sales offices and production plants with deep ties to local communities, and actively hire local employees.
*
Includes imported raw materials that receive final processing in Japan