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Ä¢¹½ÊÓƵ Group Sugarcane Procurement Guidelines

Ä¢¹½ÊÓƵ Group
Enacted July 2024

The Ä¢¹½ÊÓƵ Group has products in more than 130 countries and regions and sources raw materials from even more geographies. Ä¢¹½ÊÓƵbusiness is built on a resilient food system consisting of a stable supply of food resources supported by a rich and abundant global environment.
But we recognize the burden our business places on the environment. All processes from raw material production to the final products emit greenhouse gases, create plastic waste, and result in food loss and waste, all of which pose environmental and societal risks. In addition, when natural forests are damaged, peatlands developed, and water and soil contaminated, ecosystems are damaged, making it difficult to maintain food resources. It is therefore urgent that businesses such as ours take measures to further decrease our environmental impact across the entire value chain.
This also includes supporting a healthy and vibrant society through the defense of human rights for all people involved in the supply chain and ensuring their occupational health and safety are protected. In addition, since we use animal-based raw materials, it is necessary for us to improve animal welfare.
We will work together with stakeholders throughout our supply chain to address these issues and make improvements to build a supply chain that positively impacts the environment and society.

1. Introduction

Sugarcane is one of the key commodities that support the Ä¢¹½ÊÓƵ Group's business activities. As a result of our supply chain risk assessment, we identified climate change, water, soil, biodiversity, and human rights as being critical. We are committed to building a sustainable sugarcane supply chain by working together with our stakeholders to fulfill our social responsibility to stably procure cane sugar and provide products. Therefore, based on the Ä¢¹½ÊÓƵ Group Shared Policy, we have established these guidelines, which stipulate matters related to the procurement of sugars derived from sugarcane in addition to the matters described in the Guidelines for Group Shared Policy for Suppliers. In "3. Criteria" we set out the ideal sustainable sugarcane procurement that the Ä¢¹½ÊÓƵ Group aims to achieve. To realize these goals, we have set out the specific initiatives we will take and the numerical targets (KPIs) for 2030 in "4. Ä¢¹½ÊÓƵ Group Action Guidelines."

2. Applicable items

These sugarcane guidelines apply to sugarcane and all kind of raw materials derived from sugarcane and used for fermentation (crude sugar, cane juice and cane molasses) and cane sugar for food procured by the Ä¢¹½ÊÓƵ Group. The scope of applicable items may be expanded in the future. These guidelines also apply to all suppliers that handle the above items that the Ä¢¹½ÊÓƵ Group purchases, trades, processes, or sells.

3. Criteria

The Ä¢¹½ÊÓƵ Group aims to procure sugarcane produced in accordance with the following standards after considering the risks and international requirements in procuring sugarcane.

  1. Do not destroy primary or secondary forests, or develop protected areas or peatlands.

  2. When clearing new land for agriculture, implement better management practices to avoid and mitigate loss of natural ecosystems and biodiversity.

  3. Limit the use of agricultural chemicals to those locally permitted for use and take measures to reduce their use.

  4. Carry out water intake, discharge, and use with consideration for the circulation of water resources.

  5. Maintain and improve soil health.

  6. Take measures to appropriately dispose of, reduce, and recycle waste.

  7. Implement better management practices to reduce greenhouse gas emissions.

  8. In accordance with the United Nations Declaration on the Rights of Indigenous Peoples, respect the rights of local residents based on the principle of Free, Prior, Informed Consent (FPIC) when utilizing land and other properties that they customarily own or use.

  9. Do not engage in slave labor or child labor.

  10. Treat all workers fairly and provide them with a healthy and safe working environment.

  11. Implement better management practices to reduce air pollution from burning unused portions of sugarcane.

4. Ä¢¹½ÊÓƵ Group's Action Guidelines

The Ä¢¹½ÊÓƵ Group aims to build a sustainable sugarcane supply chain, and will take the following measures for the sugarcane that we currently purchase. To ensure transparency, we update the public on the measures we are taking.

  1. Details of measures
    ・Ensure traceability*1.
    ・Identify risks and implement solutions by talking directly with suppliers and other stakeholders in the supply chain.
    ・Promote the purchase of certified products that meet the Ä¢¹½ÊÓƵ Group Shared Policy.
    ・Support producers for sustainable sugarcane production.

  2. Target and KPI for the year 2030
    100% of the raw materials purchased will be certified (e.g. Bonsucro*2) to meet the Ä¢¹½ÊÓƵ Group Policy or will have traceability to the mill.

5. Revision

We revise these guidelines on a regular basis.

*1 "Ensuring traceability" means understanding the supply chain for the raw materials and being ready to trace back to the location of origin when environmental or human rights issues arise.

*2 Bonsucro: