Megmilk Snow Brand

Sustainable development strategy
The company reports consistently against all its targets.

Scope 1, 2, and 3 greenhouse gas (GHG) emissions
The company has set a goal to reduce 50% of CO2 emissions by 2030, compared to the baseline of fiscal 2013. They consistently report their progress against these targets for scope 1 and scope 2 emissions. Additionally, the company is actively working to reduce both scope 1 and scope 2 greenhouse gas emissions, as well as scope 3 emissions.

Plastic use and packaging waste
The company shows its commitment by implementing policies and engaging in activities to reduce plastic use and transition to sustainable packaging. Additionally, the company provides quantitative data on the use of petroleum-derived plastic, revealing a decrease from the previous year.

Workforce nutrition
The company has implemented a nutrition education programme for its employees.

No leading practices were identified in the social inclusion area.

Provide and promote decent work
The company has publicly stated its commitment to prioritize the health and safety of its workers. Additionally, Megmilk Snow Brand provides information on the proportion of women in its direct operations workforce, broken down by employee category. Furthermore, the company has set a target to increase women’s representation in management positions by more than 10% by March 2026.

Respect human rights
Megmilk Snow Brand has a publicly available policy statement committing it to respect human rights. This commitment extends not only to the company itself but also to its suppliers, as reflected in its policy statements emphasizing adherence to ILO core labor rights. It also discloses a process for identifying and addressing human rights risks and impacts within its operations, both internal and across its supply chain.

By openly disclosing the outcomes of its human rights risk assessments, the company showcases its transparency and willingness to be held accountable for its actions. Additionally, the company’s engagement goes beyond statements, exemplified by a case study illustrating proactive measures taken to address a significant human rights risk issue.

Governance and accountability for sustainable development
The company has an opportunity to link performance criteria in senior executives’ remuneration policies to targets and objectives which cover nature, including biodiversity, and social issues. Furthermore, while it states that the board of directors has expertise in nutrition, it has an opportunity to disclose whether its highest governance body has expertise with respect to the company’s most material sustainability topics.

Lobbying and advocacy
The company has an opportunity to report on its lobbying and advocacy practices on sustainability-related issues, and whether these activities align with its sustainability strategy.

Stakeholder engagement
The company has an opportunity to disclose how it engages with stakeholders, the issues raised during such activities, and the outcomes of its stakeholder engagement.

Sustainable development strategy
The company states that it has a materiality assessment; however, it has an opportunity to disclose its process for identifying and prioritising its most relevant sustainability topics and impacts, including how external stakeholders are involved in the process. Moreover, while it discloses some sustainability objectives/targets including climate and water, it could establish group-wide targets for the most material parts of its value chain.

Scope 1, 2, and 3 greenhouse gas (GHG) emissions
The company has the potential to align its scope 1 and 2 emissions targets with a 1.5-degree trajectory. Additionally, there is an opportunity for the company to disclose a time-bound target to reduce its scope 3 greenhouse gas emissions. Furthermore, the company has the chance to report progress on these scope 3 targets. Lastly, the company’s scope 3 emissions targets have the potential to be aligned with a 1.5-degree trajectory.

Animal welfare
The company has an opportunity to set animal welfare targets applicable to all species, geographies and products.

Antibiotic use and growth promoting substances
The company has an opportunity to disclose a policy on reducing the (prophylactic) use of antibiotics and/or growth promoting substances. It could also disclose targets to phase out the prophylactic use of antibiotics across all species, geographies and products and report progress against them.

Ecosystem conversion
The company has an opportunity to disclose its efforts to avoid ecosystem conversion, including deforestation or restoration. The company could develop a strategy and publicly report on specific, time-bound targets.

Food loss and waste
The company has an opportunity to disclose its food loss and waste (FLW) reduction targets and report progress against these targets. Additionally, the company can consider aligning its FLW reduction goal with SDG12.3, which aims for a 50% reduction by 2030.

Protein diversification
The company has an opportunity to set a sales-based target to increase alternative proteins across its portfolio, as well as report progress against this target.

Water withdrawal
The company has an opportunity to enhance its disclosures relating to water use and withdrawal.

Accessibility and affordability of nutritious foods
The company has an opportunity to disclose its commitment and commercial activities to improve the accessibility and affordability of nutritious foods.

Availability of nutritious foods
The company has an opportunity to demonstrate how it is improving the nutritional quality of its products and to set targets to increase the share of more nutritious products in its portfolio.

Food safety
While the company discloses that 96% of its own operations are certified to a GFSI-recognised food safety scheme, it has an opportunity to extend the certifications to 100% of its own operations. Additionally, the company can disclose the percentage of its food suppliers that are certified to a GFSI-recognised food safety scheme.

Workforce nutrition
The company has an opportunity to disclose evidence of other workforce nutrition programmes, such as workplace breastfeeding support and healthy food offerings. Furthermore, the company has an opportunity to implement workforce nutrition programmes for its supply chain workers.

Child labour
The company has an opportunity to disclose examples of remediation programmes when a case of child labour is found in its operations and to indicate how it is building the capacity of its suppliers to prevent child labour impacts. While the company prohibits its suppliers from using child labour, it could require them to have an age-verification system in place.

Farmer and fisher livelihoods
The company has an opportunity to identify living income benchmarks and assess living income gaps for some commodities and regions. Also, it could adopt procurement practices and develop supply chain relationships that improve farmers’ income resilience.

Forced labour
The company has an opportunity to disclose forced labour requirements for its operations and supply chain such as a prohibition to pay recruitment fees, to retain workers’ personal documents or to restrict workers’ freedom of movement. Further, it could provide evidence of how it builds the capacity of its suppliers to prevent forced labour impacts.

Health and safety of vulnerable groups
The company has an opportunity to recognise and assess the health and safety risks to vulnerable groups, such as migrant and temporary labourers, women and young farmers. Furthermore, it could provide evidence of support activities that improve the health and safety of vulnerable groups.

Act ethically
The company could consider describing the process for identifying bribery and corruption risks in specific locations and activities. It has the opportunity to disclose a publicly available policy statement that prohibits bribery and corruption. Additionally, the company could explore the inclusion of anti-bribery and anti-corruption clauses in contracts with business relationships. While the company has a mechanism to raise concerns, it could specify the accessibility of the concerns mechanism for all stakeholders and whether complainants can opt for anonymity.

Furthermore, the company has the option to develop a policy outlining its approach to lobbying and political engagement. It could also consider disclosing a policy statement indicating that it refrains from making political contributions. The company could also share information about its lobbying expenditures and its requirement for third-party lobbyists to adhere to its lobbying and political engagement policy.

Provide and promote decent work
The company can enhance transparency by revealing a comprehensive policy for suppliers’ worker health and safety. It could detail how it monitors suppliers’ performance. Setting a time-bound objective for a living wage and its attainment could further demonstrate commitment. Additionally, disclosing methodologies for determining living wage and strategies to support payment by suppliers is vital.

Moreover, the company has an opportunity to disclose a more explicit public commitment to women’s empowerment. The company could also disclose board composition, aiming for 30% female representation. Additionally, the company could provide the ratio of the basic salary and remuneration of women to men in its total direct operations workforce for each employee category

Respect human rights
The company currently discloses its efforts to identify and specify human rights risks. However, it would be beneficial if the company also provided a detailed description of its process for assessing these risks. This description should include an explanation of how relevant factors, such as geographical, economic, social, and other considerations, are taken into account.