The Asahi Group promotes the establishment of mechanisms to ensure the stable supply of agricultural materials without depleting them in the future with the aim of realizing sustainable raw material procurement that will preserve the valuable blessings of nature for the next generation.
Defining Important Raw Materials for Each Business and Assessing the Environmental and Human Rights Risks
The Asahi Group has defined the important raw materials in the Alcoholic Beverages Business, the Soft Drinks Business and the Food Business in terms of agricultural materials. The Group has begun assessing the environmental and human rights surrounding farm products and their places of production for its important raw materials. For risks that have been assessed, local information is being verified and risk countermeasures are being implemented.
Selecting Fourteen Important Raw Materials and Assessing Risk in Four Categories
The important raw materials in the Alcoholic Beverages, Soft Drinks, and Food businesses, and the areas of assessment of environmental and human rights risk are as follows.
Important Raw Materials
Alcoholic Beverages Business: Barley, corn, hops, and rice are important raw materials, and the Group researched places where raw materials are procured and places of production in approximately 150 regions worldwide. In 2021, the Asahi Group researched and verified suppliers in regions with identified risks.
Soft Drinks Business: Coffee, sugar (sugarcane, sugar beet), corn, raw milk, and skimmed and whole milk powder are important raw materials, and the Group researched places where raw materials are procured and places of production in approximately 100 regions worldwide.
Food Business: Oil palm, soy beans, cacao, corn, and raw milk are important raw materials, and in 2021 the Group researched about water in approximately 30 regions worldwide.
Environmental Risk Assessment
The Asahi Group carries out environmental risk assessment in three categories, which are the impact of climate change through scenario analysis required by TCFD recommendations, water risk surveys evaluating impact on water resources which are essential for the growth of farm products, and evaluation of the impact of continuous agricultural activities on biodiversity.
Human Rights Risk Assessment
The Asahi Group continues to monitor its suppliers actions regarding labor and human rights from the perspective of the environment and human rights in local communities and on farms.
Implementing Risk Countermeasures in Collaboration with Stakeholders
The Asahi Group implements risk countermeasures in collaboration with stakeholders. We conduct risk assessments of raw material production areas with high potential for environmental problems and share risk information with suppliers in agricultural production areas. The Group has launched initiatives that include support for agriculture.
In 2021, Asahi Beverages Pty Ltd in Australia began a new scheme for direct purchase of raw materials such as barley involved in the alcoholic beverages business operated by Carlton & United Breweries Pty. Ltd. (CUB) from producers. By monitoring strict quality standards, the scheme makes it possible to procure higher quality barley, fresher and cheaper, as well as to implement a traceability program that allows appropriate water usage to be set in addition to managing production areas, pesticides, and agrochemicals. For farmers, the ability to enter into long-term business contracts with CUB also allows them to be proactive about introducing new agricultural technologies and enhancing sustainability and efficiency in the barley production stage.