Material Issues
As a Health Creation Company, the ITO EN Group is working towards the realization of its long-term vision of becoming a Global Tea Company under the ITO EN Group Basic Sustainability Policy, with seven material issues (Contribution to Dietary Habits and Health, Contribution to Sustainable Agriculture, Environment, Deepening Ties with Local Communities and Society, Contribution to a Sustainable Supply Chain, Promotion of Diverse Human Assets and Active Roles for All, and Corporate Governance) as management strategies, and we are promoting initiatives while linking them to our Medium-Term Management Plan.
Seven Material Issues
Contribution to Dietary
Habits and Health
Contribution to Sustainable
Agriculture
Environment
Deepening Ties with Local Communities and Society
Contribution to a Sustainable Supply Chain
Promotion of Diverse
Human Assets and Active
Roles for All
Corporate
Governance
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Contribution to Dietary Habits and Health
Suggest and provide healthy and fulfilling lifestyles through research and development with an eye towards the age of centenarians and through products and services helpful to the health of people of different generations
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Contribution to Sustainable Agriculture
Accelerate the development of high-value-added materials and environmentally friendly agriculture through the Tea-Producing Region Development Project to contribute to sustainable agriculture
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Environment
Engage in initiatives for the protection of the global environment, which is shared by all of humanity, as a company that engages in business activities centered mainly on products derived from nature
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Deepening Ties with Local Communities and Society
Contribute to the resolution of local societal issues through dialogues with various stakeholders.
Utilize communication through tea to support both physical and mental health
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Contribution to a Sustainable Supply Chain
Respect human rights for everyone throughout the value chain and maintain sustainable partnerships with suppliers to both resolve social and environmental issues and achieve sustainable profits for all parties
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Promotion of Diverse Human Assets and Active Roles for All
Construct an organization where all employees work vigorously in good health
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Corporate Governance
Practice and push ahead with sustainability management to improve responses to social and environmental issues as well as risk management and to increase corporate value
Material Issues Identification Process
1. Identification of social issues
From the perspective of the changing external environment, the demands and expectations of society, and key customer issues, we identified social issues by referring to international disclosure standards, ESG evaluation criteria, and the SDGs.
* Disclosure standards referred to: GRI Standards, SASB Standards, ESG evaluations (FTSE, MSCI), SDGs, ISO 26000.
2. Importance / materiality evaluation
We evaluated the material issues candidates by adopting a double material issues approach, which maps the extracted social issues from both the perspective of their importance for stakeholders and their importance for the sustainable growth of the ITO EN Group.
Reference Materiality map
3. Stakeholder dialogues
Based on the candidate material issues identified, we sent a questionnaire to external experts, investors, internal and external officers and other stakeholders asking about their expectations and requests for the ITO EN Group, and issues that should be prioritized. Senior management and external experts also held stakeholder dialogues to hear the opinions of stakeholders.
4. Identification of material issues
After steps 1-3, the Board of Directors deliberated over the candidate material issues in conjunction with the medium- to long-term management plan. The Board identified seven material issues as the areas to be addressed as management issues with corresponding themes for initiatives.
Seven Material Issues and Indicators (KPIs)
We have set key performance indicators (KPIs) for each material issue in line with the Medium-Term Management Plan, and are managing and evaluating them using a PDCA cycle. We plan to revise the indicators (KPIs) regularly according to the progress of initiatives.
| Material issues | Theme | Indicators (KPIs) | SDGs (Contributable Goals and Targets) | |
|---|---|---|---|---|
| Contribution to Dietary Habits and Health | Research and development toward the era of the 100-year lifespan |
Number of research presentations relating to health value of foods 25 presentations a year |
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3.3 3.4 |
| Contributing to the health needs of customers and their ever diversifying lifestyles |
FOSHU and Food with Functional Claims sales breakdown FY2026: 30% or higher |
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3.3 3.4 |
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Nations where Oi Ocha is sold More than 100 countries by FY2040 (More than 60 countries by FY2028) |
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Ratio of products made with no added sugar* in international beverage sales *Sugar-free beverages (tea/water/carbonated water) + unsweetened natural beverages such as 100% vegetable drinks and fruit drinks |
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| Product safety and security Pursuit of quality and reduction of environmental impact |
International food safety certification rate: 100% * Domestic beverage / leaf manufacturing factories |
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12.4 | |
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Beverage / leaf factory audit rate: 100% * Domestic beverage / leaf manufacturing factories |
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| Contribution to Sustainable Agriculture | Evolution of a unique world-class agricultural mosdel |
Area developed through the Tea-Producing Region Development Project FY2026: 2,650 ha FY2030: 2,800 ha |
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2.3 2.4 8.3 11.a 15.4 17.16 |
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Production volume of organic farming FY2026: 380 t FY2030: 500 t |
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Maintenance and operation of GAP certification: 100% *The Tea-Producing Region Development Project |
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| Environment | Response to climate change |
CO2 emission reduction rate (compared with FY2018)1 FY2030 Scope 1 & 2: 50% reduction, Scope 3: 20% reduction FY2050 Scope 1-3: carbon neutral |
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7.2 12.2 13.1 |
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Company-wide renewable energy ratio FY2030: 100%2 |
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Ratio of electric vehicles introduced (percentage of all vehicles) FY2030: 50%2 |
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| Water resources | Reduction of basic water usage intensity (compared with FY2018) FY2030: 16% reduction * Water usage per 1 kl of product produced |
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6.4 6.6 |
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| Sustainable containers and packaging |
Percentage ratio of recycled materials used for all PET bottles FY2030: 100% |
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12.4 12.5 14.1 |
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| Biodiversity conservation |
Total number of participants in water source conservation activities, environmental conservation and maintenance activities: 500 per year |
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15.4 | |
| Promoting waste reduction / resource recycling |
Foodstuff recycling rate ・ITO EN: Over 90% ・Tully’s Coffee Japan: Over 50% |
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9.4 12.2 12.3 12.5 |
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Number of recycled used tea leaf products launched 10 products a year |
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Reduction in vending machine dummy plastic use FY2028 50% reduction (vs. FY2018) |
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| Deepening Ties with Local Communities and Society | Co-creation with local communities |
Number of sakura (cherry trees) planted 150 trees a year |
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11.a 17.17 |
| Creation of connections through tea |
Number of participants in dietary education 600,000 participants a year |
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4.4 4.7 11.4 |
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| Contribution to a Sustainable Supply Chain | Building a sustainable supply chain |
Number of quality meetings held 7 times a year |
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9.4 |
| Conducting assessments of suppliers | ||||
| Promotion of initiatives to ensure respect for human rights |
Conduct human rights due diligence for high-risk supply chains |
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4.7 8.7 8.8 12.6 |
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| Conduct internal human rights awareness training At least 3 times a year |
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| Promotion of Diverse Human Assets and Active Roles for All | Development and empowering of diverse human resources |
Employee engagement score FY2026: 4.2 or higher *Out of 6 points (Survey items changed since FY2023) |
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4.4 4.7 8.5 |
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Female manager ratio FY2026: 10% |
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Gender pay gap (regular full-time employees, male employees = 100) FY2026: 80% Of the above, less than 10 years of service 100% |
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Percentage of male employees taking childcare leave FY2026: 50% |
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| Promoting health and productivity management | Maintain Health and Productivity Management Organization (White 500) certification |
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3.5 3.6 3.a |
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| Corporate Governance | Promoting sustainability management |
Strengthen the system for tackling material sustainability issues and supervisory functions, and engage in dialogues with stakeholders |
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| Enhancing the group risk management | Risk Management Committee meetings |
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16.5 | |
| Regular meetings with affiliated companies | ||||
| Thorough compliance | Number of compliance education sessions held (for all employees) |
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8.5 10.2 |
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| Promoting DX |
DX Promotion Committee meetings |
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1. The reporting boundary used for the reported Scopes 1 and 2 emissions is ITO EN, LTD. and its consolidated subsidiaries
(Except for Cafetalera de Tierras Ticas, S.A. and EMPRESAS DE ANTIOQUIA LTDA).
The reporting boundary used for the reported Scope 3 emissions is ITO EN, LTD. and its consolidated subsidiaries in Japan. -
2. Applies to ITO EN, LTD. only.