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Main Q&As at Asahi IR Day 2021 - for Analysts and Investors

How much capital investments will be required to achieve the 2030 targets for reducing CO2 emissions and switching to recycled PET? When will these investment plans be specific?
We will invest in the introduction of renewable energy and energy-saving equipment for reducing CO2 emissions, and consider investing in collaboration with other companies for switching to recycled PET. For these investments, we plan to allocate funds including ones which was raised through Green Bonds. At present, each Regional Headquarters is incorporating the reduction plans for 2030 into its management strategy and giving it specific, while introducing the concept of internal carbon pricing. The investment plans will be specific in conjunction with the reduction plans.
What specific aspects of global governance and risk management are evaluated, what issues are pointed out, and how the discussions are held at the Board of Directors’ meetings? How will you improve it further?
The Board of Directors appreciates the fact that we are implementing autonomous, disciplined glocal management in accordance with the AGP and our strategy, while transferring authority to the local management teams. The issue is to maintain optimal global governance at all times. We are discussing this issue every year, as it is necessary to always maintain high quality communication without relying on individuals, to link it with various policies and committee activities, and to deepen our efforts to respond to various changes. Regarding risk management, this year marks the third year after introduction of ERM, and we have been evaluated highly for the functioning of ERM, risk control and risk appetite. On the other hand, it has been pointed out that the issue is how to shift quickly and accurately from ERM to crisis management in the event of a contingency such as the spread of COVID-19.
Asahi Group has set CO2 emission reduction targets for each region. Please tell us about the issues and the degree of difficulty in achieving the targets for each region. Also, please tell us about the evaluation system for achieving the targets.
There are differences in the progress of each region, as social conditions differ from region to region. In Japan, the delayed introduction of renewable energy is the one of issues to achieve the target. However, we have steadily improved the effectiveness by the efforts such as switching where to purchase renewable energy centered on the Kanto and Kansai regions, and we will continue to make efforts including utilizing the best practices of other regions. In Europe and Oceania, the introduction of renewable energy is progressing, and we will continue to focus our efforts in this area. In Southeast Asia, we are working on the basics, such as the collection of data that will form the foundation, and we will continue to make efforts including strengthening our human resources. Through the efforts we have made so far, we will further strengthen sharing best practices within regions, which is one of our strengths, and aim to achieve the goals of the entire group in the future. In terms of evaluation, we are confirming the progress against the roadmap, which is directly related to the management's evaluation.
What are the current issues that Asahi Group is facing, given the progress being made by competitors in responding to TCFD?
In responding to TCFD, it is necessary to show specific numbers in a scientific and rational process. We recognize that the issue is to visualize the contents with speed. It is also important to consider how to verify the effects that will emerge in the future after formulating hypotheses, and we would like to communicate with stakeholders after verifying our unique measures and their effects. In the future, we would like to take a broad range of opportunities across agricultural products, plastics, water, etc., and indicate the direction of specific initiatives.
Please explain your awareness of problems and issues regarding responsible drinking. What are the long-term risks, looking ahead to 2030 and 2050, and what do you think about the probability of these risks?
Initiatives for responsible drinking is very important to protect our business itself and to grow it in the future. In order to reduce irresponsible drinking, we will strengthen our investment more than ever and develop educational activities on social norms and way of drinking, from the perspective of the responsibility of a company selling alcohol beverages. From a long-term perspective as well, we see it as a risk in the discussion of megatrends. We are discussing various risks along with opportunities, based on the premise that the risks such as increasing liquor taxes, and restricting advertisement and where people can drink may materialize. Our company will continue to engage in various activities to realize the reducing inappropriate drinking, including collaboration with IARD (International Alliance for Responsible Drinking).
We think that industry-wide efforts are needed to recycle plastics including PET bottles. What are the industry-wide issues and Asahi Group’s unique ones?
We consider that the collection of PET bottles is an industry-wide issue. It is necessary to collect PET bottles as a resource and circulate them. Japan Soft Drink Association has also formed an initiative and is promoting specific measures such as improving collection activities. In addition, we are working in cooperation with other companies in the industry including investment in R Plus Japan, Ltd. to promote recycling used plastic.