Identifying unique material issues

 In 2019, the Coca-Cola system in Japan established a Sustainability Framework that with three core platforms: Inclusion, Communities, and Resources. Within these platforms, we identified nine priority issues crucial to realizing our unique non-financial CSV Goals.
 However, the external business environment has evolved significantly since then, bringing new challenges and uncertainties. In 2023, we reevaluated our existing material issues and identified concerns unique to our company, categorized under Environment, Society, and Governance. By integrating these issues into our value creation process, we have mapped and defined the level of importance to both us and our stakeholders. This reevaluation resulted in the identification of 13 material issues, including "Sustainable Supply Chain," "Packaging and Recycling (Circular Economy)," "Climate Change Mitigation and Adaptation," "Water Stewardship," and "Diversity, Equity & Inclusion (DE&I)."

 Addressing these 13 material issues led to us establishing a Sustainability Committee, comprising executives and leaders from each division. This new committee facilitates diverse discussions and rapid internal feedback sharing, of reinforcing our ability to formulate policies and strategies for each issue. Our goal is to enhance transparency, based on the recommendations of the Task Force on Climate-related Financial Disclosures (*1) and active participation in Climate Change Initiatives (*2). These principles underpin our sustainability activities.
 Additionally, we continue to promote various horizontal recycling initiatives, including “bottle-to-bottle,”(*3) “CAN to CAN”(*4) to effectively utilize resources.

 Our efforts have been highly evaluated externally, and we have been selected as a constituent of leading ESG investment index the DJSI Asia Pacific, for five consecutive years. In addition, we have been recognized as an "A List 2022 Company" with the highest rating in the Climate Change Survey conducted by CDP, an international non-profit organization.

Promoting human capital management by strengthening our human capital strategy

 Through integration, we have become a company where diverse human resources and cultures coexist, forming a source of strength. We perceive this diversity as an asset and are implementing various approaches to optimize the value of our human resources, achieving sustainable growth by capitalizing on diverse perspectives. Recognizing that people and organizational strength constitute the fundamental pillars of our business, we actively provide learning opportunities, such as our human resources development programs for leaders who are driving change, thereby improving the capabilities of the entire organization. Moreover, to enable employees to reach their full potential, we have introduced compensation systems that emphasize results and have established a commendation system. We are working on various other measures as well, such as strengthening Diversity, Equity & Inclusion (DE&I) and promoting diverse work styles. We will continue to actively invest in human resources development, enhancing the value of our personnel, which is one of our strengths and essential for the future growth of our company.

Value creation steps toward future sustainable growth

 We have formulated our strategic business plan “Vision 2028," which will run through to 2028. In order to achieve the goals of this plan and to further solidify the foundation for sustainable business growth, we will firmly engage in ESG management and human capital management.
 We are committed to maintaining high quality standards to provide safe and secure products and services to meet the needs of all stakeholders including our customers and shareholders. We will continue to move forward toward sustainable growth and enhancement of corporate value by "delivering happy moments to everyone while creating value.”