Ajinomoto Group 2005 CSR Report Abridged Version Message from President and CEO 1 Corporate Governance 2 What kind of future is the Ajinomoto Group pursuing? 3 How will the Ajinomoto Group contribute to the realization of a recycling-oriented society? 5 What role is the Ajinomoto Group playing in the enhancement of quality of life? 7 With Consumers 9 With Business Partners 11 With Our Shareholders and Investors 11 With Local Communities 12 With Our Employees 13 For the Global Environment 14
Transcript
Ajinomoto Group
2005CSR Report
Abridged Version
Message from President and CEO 1
Corporate Governance 2
What kind of future is the Ajinomoto Group pursuing? 3
How will the Ajinomoto Group contributeto the realization of a recycling-oriented society? 5
What role is the Ajinomoto Groupplaying in the enhancement of quality of life? 7
With Consumers 9
With Business Partners 11
With Our Shareholders and Investors 11
With Local Communities 12
With Our Employees 13
For the Global Environment 14
CSR not only encompasses a company’s socialresponsibility; it is also a matter of trust. That’s why we arecommitted to developing products and services that are usefulto people in their daily lives, thereby earning the trust andpraise of customers. This will, in turn, translate into businessexpansion. This positive cycle contains the true significance ofCSR initiatives. So the ideal situation is for CSR and businessactivities to be intimately linked.
We have just held internal workshops to envision the futureof the Ajinomoto Group in 2020, and have been defining a CSRvision. We will incorporate solutions to various issues in the fieldsof food and the environment into our vision, and into ourbusiness itself.
As for food matters, its safety and reliability are seriousissues for the food industry. From the perspective of CSR,safety is an issue of responsibility, and reliability is an issue of trust.The role of the Ajinomoto Group should first be to ensuresafety, and to assure the quality of food products in all processstages, including development, production, distribution, andsales of products. Furthermore, from the mid- to long-termperspective, various concerns, like global warming, could causea serious food shortage. For such a situation, we must ensurea steady supply of food and amino acids which play a vital rolein human bodies.Reliability, on the other hand, is an emotional issue, profoundlyrelated to the culture. Accordingly, we must advance ourbusiness endeavors based on a deep understanding of eachregion’s dietary culture.
In our pharmaceuticals business, we have a fundamentalidea of medical treatment, which is designed to improve thehuman body's immune system and protect it from all illness.Through products that work together with amino acid-basedpharmaceuticals and medical care, it is our goal that totalnutrition care (TNC) will be widely recognized in Japan, to helppromote better health for everyone.
Communication is an essential part of CSR activities. Wethink that products and their packaging, which consumers holdin their own hands, are the best way to communicate and startdialogues. We will proactively engage in dialogues withconsumers by incorporating our messages into products andpackaging, and then obtain feedback from consumers.
Employees are also important stakeholders, as well as a vitalforce in promoting our CSR agenda. I believe that employees,each of whom has different values, expect the company toprovide diverse modes of employment. Therefore, at AjinomotoCo., Inc. we embrace the idea of diversity and have adopted amulti-track human resources system. Employees can choosethe mode of employment and leave system that best suits theirunique values and living conditions. In particular, there aremany opportunities for women to succeed at the AjinomotoGroup, which has positioned household food as a cornerstoneof its business. Looking ahead, I expect that many women willsucceed at the Group as managers and in other positions.
Regarding the environment, the Ajinomoto Group hasestablished the Ajinomoto Group Zero Emissions Plan, withtargets that are more stringent than current laws and regulations.We are moving forward with the reduction of environmental loadsin line with this plan. The manufacture of products consumesenergy and generates CO2, and the fermentation processuses large quantities of water. Thus, we strive to minimize theenvironmental loads generated by these business activities.Instead of disposing of the by-products from our fermentation-related production, a number of our plants are employing Bio-cycle—recycling of by-products into fertilizer for application onfields of sugar cane, which is a raw material of AJI-NO-MOTOumami seasoning. Such utilization of Bio-cycle encouragessustainable agriculture and helps contribute to the developmentof a recycling-oriented society.
Finally, this year is the first year of our new mid- to long-termmanagement plan, -dvance 10, which will guide theAjinomoto Group through fiscal 2010. CSR management is a
Ajinomoto Group CSR Report 2005 Abridged Version1
Message from President and CEO
As a company striving to earn everyone’s trust, we are making corporate social responsibility (CSR) an integral part of our business.
part of our basic strategy. In April 2005, we established a CSRDivision at the headquarters of Ajinomoto Co., Inc. We are aimingto make CSR a more integral part of the entire Ajinomoto Group.Advancing from Japan to the global arena, we help to build asustainable, recycling-oriented society. The Ajinomoto Group
will continue to strive to be a truly global company. We strive tobe trusted by the people of the world—today and 100 years intothe future.
President and CEO
Ajinomoto Co., Inc. places the highest priority on stakeholder-oriented corporate governance that enhances corporate value,competitiveness and our ability to fulfill our social responsibilities.We have decided that directors should have both supervisoryand executive authority. Internal directors therefore also serveas Corporate Executive Officers in principle. In June 2005, wemoved to further strengthen corporate governance by separatingthe duties of the moderator of the Board of Directors, who servesalso as the Chairman of the Board, from those of the President& CEO.
For effective supervision over business executions, theChairman of the Board and one other director, as well as theoutside director, concentrate on supervising execution whilehaving no responsibility for execution.
We moved to increase the transparency of compensationand personnel affairs for Corporate Executive Officers andothers, and also to reinforce the management structure. Weappointed the outside director as a member to the Nominating
Advisory Committee and the Compensation AdvisoryCommittee for Directors and others. These bodies formerlyreported to the President & CEO as the advisory committeesof the President & CEO, but now report to the Board ofDirectors as sub-organizations of the Board of Directors.
Effective internal control and risk management systemsremain an area of emphasis. The Internal Auditing Departmentaudits in-house organizations and the Group and reports theresults directly to the President & CEO.
We have established the Business Conduct Committee topromote compliance of operations in and outside Japan. ThisCommittee plays a role to promote the legal compliance andthe ethics required of a good corporate citizen. Furthermore,the Risk Management Committee, which was established in2002, deals speedily and efficiently with potential business risks,and systems are in place to ensure information is immediatelytransmitted to senior management.
Ajinomoto Group CSR Report 2005 Abridged Version 2
Corporate Governance
Business ConductCommittee
Risk ManagementCommittee
Subsidiaries and Affiliates
Subsidiaries and Affiliates
Subsidiaries and Affiliates
Spin-off companies
Internal AuditingDepartment
General Shareholders’ MeetingManagement & Supervision
Determining the CSR vision for the Ajinomoto Group
We embrace our philosophy—to contribute significant advances in Food and Health on aglobal basis and ultimately to create a better life for all, aiming to be a trusted and reliablecompany. We are now drafting a CSR vision in order to express our philosophy even moreconcretely through our activities, and demonstrate the kind of future that we are pursuingto all stakeholders inside and outside the Group.
What kind of future is theAjinomoto Group pursuing?
Special Feature 1
Consumers
Businesspartners
Localcommunities
Employees
Shareholdersand investors
Global issues
Our stakeholders
The customers of the Ajinomoto Group include everyonearound the world who uses our products and services. Weare building relationships of trust with consumers by providingreliable high-quality products, promptly responding to thevoice of the consumer in our business activities, and promotinga more active dialogue with consumers. We focused thecontent on our pages towards the consumers of our productsand services.
We are committed to improving the skills of our employees byenhancing the work environment and carrying out trainingprograms, enabling all our employees to reach their fullpotential and enjoy safe and comfortable workplaces. We areaiming to realize workplaces that provide job satisfaction bypromoting balance in the work and private lives of employees.
With a presence in 23 countries and regions around the world, weconduct progressive communication activities. We are emphasizingpromotion, including exploration and education about food culture,with the goal of helping to realize better lives for everyone.
There are many crucial issues facing the world today, including povertyand the destruction of the natural environment. Although we cannotsolve these problems alone, we continue to make a contributiontoward sustainable life on Earth through ongoing dialogue with ourstakeholders, the development of environmentally-friendly technologies,and the realization of a mutually beneficial coexistence with nature.
We are aiming to achieve a company that grows together withour business partners, through information sharing, fair andopen transactions, and a strict compliance with all lawsand regulations.
In order to improve our corporate value, we strive to activelydisclose all information of interest and feedback on the results ofsocially responsible investment (SRI). In addition to efforts tomaintain and improve our credit rating, we pay dividends toshareholders on the basis of our consolidated earnings whilestriving for efficient management of investor capital to meet theexpectations of our shareholders.
In recent years, there has been an extensive discussion over the question, “What is CSR?” For the AjinomotoGroup, CSR means more than just responsibility. We recognize that CSR means to earn the trust of society.Our aim is to make significant advances in Food and Health around the world and create a better life forall, as embodied by our corporate philosophy. We believe that we gain the trust of all our stakeholdersby sincerely embracing and pursuing our philosophy (see below chart). In order to pursue our corporate philosophy and to reflect it in our concrete activities, we think that we needour CSR vision to provide a clear image of what we are aiming for, and how we can contribute to society.
2015
Today
2020
CSR visionAs part of the realization of our corporate philosophy, our CSR vision will be concretely outlined using illustrations and written scenarios. The aim is to show what we intend to be by the year 2020, and how society will have developed by then. We will share this CSR vision inside and outside the Group.
Corporate philosophyIndicating the road ahead like a compass.
Road mapShowing the path toward 2020
The Ajinomoto Group CSR Vision Workshop was held inJune 2005. In addition to 35 employees from theAjinomoto Group, participants also included twoindependent outside specialists, Minako Oishi, a specialistof the Nippon Association of Consumer Specialists, andMasaaki Kogure, Senior Researcher at the Institute ofProsocial Research.The participants first talked about their individual outlooksfor the global environment as well as the world andJapanese societ ies of the year 2020. Then theydiscussed the topic of “society’s expectations of theAjinomoto Group” from the stakeholders’ perspectives,under the framework of “achievements made so far” and“necessary measures for the future.” Then, necessarysolutions were prioritized.
We are currently in the process of finalizing the AjinomotoGroup CSR vision. Our CSR vision will be formulated inl ight of the views of each stakeholder group. InSeptember 2005, the vision will be promulgated withinthe Group, and each organization will develop a road mapbased on the direction indicated by our CorporatePhilosophy. In next year’s report, we plan to announceour CSR vision, which shows the truly global companythat we aspire to be, along with a road map indicatinghow this vision can be achieved.
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CSR Vision Workshop report
Future process
Consumers
Businesspartners
Shareholdersand investors
Localcommunities
Theenvironment
Employees
ItemGroupProviding products that become one's favorite, based on safety and reliability
Being in the forefront of food education, as a leading company
Devising product and package designs that work for a wide range ofconsumers
Information disclosure about products that is easy to understand
Proposing healthy dietary lifestyles for longer lives
Public disclosure of transaction conditions and information
Implementing evaluations based on standards that include the social aspect
Considering the environment of places where raw materials are produced
Disclosing purchasing policies and implementing measures to ensurecompliance
Playing a leading role in setting necessary unified industry standards
Imprementing in-house business systems for users
Striving to increase the company stock price by improving our corporate value
Implementing suitable measures for improving stock value
Improving communication with our shareholders and investors
Implementing attractive dividend policies
Responsible behavior as a leading company
Ensuring quality control security
Helping to realize a sustainable recycling society for food resources
Protecting and promoting dietary culture, and developing human resources
Food education and awareness raising
Integrity (honest and sincere actions) as a corporate citizen
Contributing to local communities (improvement of local economies,employment, social welfare, and living standards)
Better exchange, cooperation, and communication with local communities
Providing opportunities for job satisfaction and self-realization
Fair and transparent evaluations (in a highly dependable personnel system)
Balancing work and private lives
Considering the physical and mental health of employees
Comfortable work environment (relations between superiors and subordinates,diverse employment types, measures to prevent sexual harassment, etc.)
Fair wage system
Better notification and communication of environmental information
Proposing more ecologically-friendly lifestyles
Improving products from environmentally-conscious view points
Environmental restoration (actively contributing to the creation of a goodenvironment)
Promotion of Ajinomoto Zero Emissions Plan
Taking responsibility for helping to improve the natural environment
Main issues recognized by each stakeholder group
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ASQUA quality management system
Contributing to Food
We aim to help realize a sustainable society, and are supporting food-producingindustries such as agriculture, fisheries and livestock farming with technology andsystems. We are moving forward with activities to help create a recycling-oriented societyby playing a leading role in creating advanced technology for the production of foodproducts with minimal waste.
How will the Ajinomoto Group contribute to the realization of a recycling-oriented society?
Special Feature 2
Food is an indispensable part of everyday human existence. There are still many parts of theworld that are affected by food shortages, while the world’s population keeps on increasing.With increasing number of abnormal weather phenomena related to global warming, a food crisisis predicted in the relatively near future. We, as a food producer, believe that it is our missionto provide people with safe and great-tasting food products. As one of our policies for securingstable food resources, we are working to create a recycling-oriented society. By maximizingthe use of natural cycles, along with the technology and knowledge that we have developedover the years, we are aiming to support agricultural and marine production in a way that doesnot have an adverse impact on natural ecosystems.For our overseas business development, we are working to operate our business so that it will berooted in the livelihoods of the local people, by focusing our efforts on contributing to a sustainablefood supply, and on improving local economies and dietary life. We use raw materials producedin each region, and are working to promote resource recycling, including the effective use of by-products, and the utilization of resources that take advantage of the natural characteristics of eachlocality. Through business activities based on this approach, as well as the benefit of our products,our goal is to gain familiarity with our products among the people of the world.
Sugar cane Cassavas Corn Beets
Beets
CassavasSugar cane
Corn
Sugar cane
Production areas for AJI-NO-MOTO umami seasoning and its main raw materials
The Ajinomoto Group procures raw materials around the world toproduce great-tasting food. Sugar cane is the main ingredient of AJI-NO-MOTO umami seasoning, and we also utilize other naturalresources all over the world.
AJI-NO-MOTO umami seasoning is produced through a fermentationprocess. Fermentation utilizes microbes that convert nutrientssuch as sugars into the various vital components necessary tosustain themselves.
The Ajinomoto Group’s amino acid fermentation productionsystem is actually a model of recycle-oriented production. Thefermentation production process generates various solid andliquid by-products. By converting these by-products to fertilizer,etc., we are returning nutrients to the agricultural field, which
provides the raw materials for our fermentation again. This cyclicsystem is called Bio-cycle. As a result of developing thissystem for over 20 years in regions around the world, theAjinomoto Group has achieved a 99% resource recovery ratiofor the by-products of our fermentation processes.
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Bio-cycle
The use of feed–grade amino acids contributes to the solution of environmental issues. In the case of pigs that are fed a conventional complete feed, about two thirds of the protein in the feed is excreted from the animals aswaste. If the manure treatment is insufficient and excess nitrogen is released into the environment, it may lead to the pollution of soil,water, and so on. Feed ingredients such as corn and wheat that are commonly used do not contain much lysine, and the amount ofamino acids that can be utilized for protein synthesisis limited by the availability of lysine. Other amino acidsthat are in excess compared to lysine in the feed arecatabolized and generate urea, and are then excreted.Therefore, nitrogen excretion from animals is causedby an unsuitable balance of amino acids in the naturalfeed ingredients. Reducing nitrogen load to theenvironment has become a big concern for thelivestock industry.Supplementation of feed-grade L-lysine and L-threonine, which tends to be deficient in livestockanimal feeds, helps improve the amino acid balanceand reduce the protein content in feed. Throughthese attempts, the total nitrogen excreted into manurecan be reduced by 25% to 50%, and the ammoniaemission from the barn can be reduced by up to 50%.
500 thousand hectares
Sugar cane crop
Harvest
Sugar (crude)
Recycling-orientedproduction process
Sun
By-product recoveredas useful resources
Product
AJI-NO-MOTO
Sugar cane fields
Sugar productionplant
Cane molasses
500 thousand tons 4.2 million tons
38 million tons
1.5 million tons
28 million tons
Chemical fertilizer
AJI-NO-MOTO plant
Accounts for approximately 70% of nitrogen fertilizer required for 500 thousand hectares of sugar cane fields
Contributes to reduction in CO2 emissions associated with production of chemical fertilizer
Absorption of atmospheric CO2
Organic fertilizer1.6 million tons
Utilization of by-products1.6 million tons The chart assumes worldwide annual
production of approximately 500,000 tons of AJI-NO-MOTO produced by the Ajinomoto Group using only sugar cane. The values for growing sugar cane and sugar production represent average global use, while the values for resources used for producing AJI-NO-MOTO and values for by-products are based on the Group results.
Air pollution
Water pollution
Into the soil
AmmoniaemissionConventional feed 100
Amino acid supplementationLow-protein feed 83
Excretion 61
Excretion 44
Reduction by 28%Using feed supplementedwith amino acids
Nitrogen metabolism in pigs
The protein in feed is digested and absorbed by pigs. However, when pigs are fed a conventional feed, about 60% to 70% is excreted by animals, and the surplus nitrogen released into the environment may pollute the soil, water, and air. Supplementing feed-grade amino acids will improve the amino acid balance in the feed and will reduce the excretion of excess nitrogen.
(As the ratio to total protein-form nitrogen in conventional pig feeds)
Body proteinretention
39
Reducing nitrogen load to the environmentthrough feed-grade amino acids
For the Ajinomoto Group, the quest for health means toincrease people’s quality of life (QOL).Average life expectancy for Japanese people is 78.6 for menand 85.6 for women, both of which are among the highest inthe world. Healthy life expectancy on the other hand is 71.4for women and 75.8 for men.It is quite important for people that their healthy life expectancyis extended to come close to their average life expectancy.
TNC, meaning overall nutritional management for patientsfrom treatment through prognosis, is a movement to supporthealthy and fulfilling lives while comprehensively managingnutrition in daily life and in medical care. To help contribute toa higher QOL for patients and their families, the AjinomotoGroup uses its amino acid technologies and nutritional expertiseto actively provide information, pharmaceuticals, and medicalfoods that are needed for TNC.
Health is more than just the absence of disease. To be fitphysically and mentally, it is important that the body besupplied with adequate nutrients and that bodily functions workproperly. In addition to being the building blocks of proteins—one of the three major nutrients—amino acids have a numberof other functions within the body, and are therefore veryimportant substances for maintaining health. As the details ofthese functions become clear, we have learned that amino acidscan contribute significantly to building health through food.
Glycine: an amino acid improving quality of sleepWhen the brain and body get a thorough rest during sleep atnight, people can spend the following day feeling full of life andcan maximize their abilities throughout the day. Ajinomoto Co.,Inc. has discovered through its research that taking glycine,an amino acid, before going to bed helps to solve the problemsthat some people experience with daily sleep, such as awakingfeeling unrefreshed or feeling sleepy during the day. Brain wavestudies conducted with medical institutions have shown thatpeople transition quickly into deep, natural sleep when they takeglycine before going to bed, demonstrating that glycineimproves the quality of sleep.
Contributing to health with the sweetness of amino acidsAspartame is a sweetener that can be used to effectivelycontrol calorie intake. It is made from two amino acids—aspartic acid and phenylalanine—and has a natural tasteresembling sugar and 200 times the sweetness of sugar.Amidst the diversification of dietary life, it will help improvemetabolic syndrome* and contribute to a healthful andgood life.* Metabolic syndrome is a condition characterized by greater risk of contracting a
number of lifestyle-related diseases, such as hypertension, hyperlipidemia or diabetes,due to visceral obesity (excessive fat in the internal organs).
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Shorter periodof hospitalizations
Quick returnto daily care
Enhancementof QOL
Promotionof at-home care
Cancer Crohn’s disease
Bedridden elderly Diabetes
Surgery Liver dysfunction
Sequelae after stroke
Nutrition
Total NutritionCare
Environmentalchange
Quality of life (QOL) Contributing to health
Supporting totalnutritioncare (TNC)
We believe that being healthy means enjoying oneself in something positively. With ouradvanced amino acid technologies, we contribute to quality of life, in which people canmake the most of their potential, regardless of whether they are physically in goodcondition or not.
What role is the Ajinomoto Group playing in the enhancement of quality of life?
Special Feature 3
Amino acid technologies have many applications in the medical field, includingamino acid infusions used to provide nutritional support before and after surgery.Certain amino acids and combinations of amino acids can be used to promotehealth and are effective for treating disease. Recently, it has been found that dataanalysis based on amino acid can be used for general health check-ups and inthe diagnosis of diseases.
Harnessing the nutritional value of amino acidsThe amino acid-based elemental diet ELENTAL was the first elemental dietdeveloped in Japan. At first, ELENTAL was used in nutritional managementbefore and after surgery. Later, however, it was discovered that theformulation, which uses amino acids as a nitrogen source and is low in fat,is an effective nutritional treatment for Crohn’s disease, an intractableinflammatory bowel disease.
Amino acid-based drug developmentMade from a combination of the branched-chain amino acids, valine, leucine,and isoleucine, LIVACT Granules are a drug designed to improvehypoalbuminemia, a condition of low serum albumin in patients with livercirrhosis despite adequate food intake, as well as the symptoms ofhypoalbuminemia, such as becoming fatigued easily and ascites (fluid build-up in the abdominal cavity). Recently, a large-scale clinical trial conducted inJapan revealed that taking LIVACT Granules long-term reduces the incidenceof serious liver cirrhosis complications by one-third.
Amino acid informaticsIt has been found that the statistical data of amounts and balance of free aminoacids within the body, especially within cells and blood, can be utilized to helpdiagnose the current state of health. In combination with the AjinomotoGroup’s amino acid analysis technology, amino acid informatics couldpotentially be used to quickly examine a person’s state of health using a bloodsample. A diagnostic technique that is patient-friendly may be invented inthe future.
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Contributing to Medical Care
Lysine fortification project in developing countriesIt is said that about 800 million people in the world suffer chronicmalnutrition and about 200 million children are deficient in energy andprotein intake. Insufficient protein intake causes various problemssuch as poor growth, depression of immunity and apathy.Cereals such as wheat flour tend to be deficient in essential amino acidssuch as lysine. By fortifying them with amino acids, the efficiency of thecereal protein utilization in the body can be improved. Ajinomoto Co.,Inc. in collaboration with the United Nations University, etc. conductedresearch projects in Pakistan, China, and Syria, aiming for nutritionalimprovement of the diets of people whose protein intake dependsheavily on wheat flour.
The Ajinomoto Group Management Policies clearly indicate thatwe seek to provide "innovative products and services of thehighest standards and quality." Based on this approach, weestablished the Ajinomoto Group Quality Policies, and arecarrying out strict quality assurance using the AjinomotoSystem of Quality Assurance (ASQUA).ASQUA is a quality assurance system that covers all of ourproducts and services. In addition to the international qualityassurance standards of ISO 9001:2000*1 and HACCP,*2 thesystem also incorporates our own standards*3 for safety andquality, as well as specific numerical targets. ASQUA clearlyoutlines the responsibilities and tasks of the Group managers.*1 ISO 9001:2000
An international standard for quality management systems, established by the ISO(International Organization for Standardization) to facilitate international trade as aworldwide quality assurance model
*2 HACCP (Hazard Analysis and Critical Control Point)A hygiene control method for food safety
*3 With ASQUA, we have established our own standards, including quality managementstandards for raw materials, quality assessment before the introduction of newproducts, and criteria for quality control emergency response. Based on thesestandards, stringent checks are carried out in every stage of the process—from productdevelopment through product delivery to the consumer.
Quality audits
We have appointed seven Quality Auditors mainly from theQuality Assurance & External Scientific Affairs Department, whoperform quality audits according to an annual quality audit plan.The audit results are reported semiannually to the QualityAssurance Committee and Management Committee and arethen reflected in the plan for the following year.
We have established a traceability system that allows rapidtrace and review of the production record for a particularproduct item. Ajinomoto Co., Inc. is compiling information databases on rawmaterials, including place of origin, allergens, and GMOs*, whilealso focusing on proper supplier management, which isessential for obtaining accurate raw material data. We are alsoimproving traceable databases for product during thedistribution stage.*GMOs: Genetically Modified Organisms
Addressing BSE and residual pesticideTo address BSE concerns, the Ajinomoto Group has reviewedall products in which bovine-based materials are used, and hasconfirmed that it does not use any material that is prohibitedby regulations of Japan's Ministry of Health, Labor and Welfare. As for the matter of residual pesticides, we have strengthenedour management system and implemented our ownindependent inspection system at SHANGHAI AJINOMOTOFOOD RESEARCH AND DEVELOPMENT CENTER CO., LTDin China, in addition to the inspection carried out by overseassubsidiaries. This ensures the safety of the vegetables we useas raw materials.
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In order to earn the confidence of consumers around the world by providing safe and great-tasting foodproducts, we are promoting a more in-depth dialogue with consumers, and reflecting what we learn in ourproducts. We also emphasize design that makes products easier to understand and use, aiming to producebetter products for everyone.
With Consumers
ASQUA quality management system Traceability
Producttraceability
Production processtraceability
Raw materialstraceability
Raw materialstraceability
Producttraceability
Production processtraceability
Supply ofraw materials DistributionProduction,
processing
Supply ofraw materials DistributionProduction,
processing
Consumer
Ajinomoto Co., Inc.Direct supplier
Expanding coverage to the upstream supply chain
Traceability Flow Chart
The Ajinomoto Group provides information labeling, such asmandatory labeling items including product name, rawmaterials, volume, best before date, preservation methodand name of producer or retailer; nutritional content; recyclingmethod; and materials in containers and packaging incompliance with such Japanese laws as the Food SanitationLaw, the Japanese Agricultural Standard, the NutritionImprovement Law, the Law for Preventing Unjustifiable Extraor Unexpected Benefit and Misleading Representation, and theLaw for Promotion of Effective Utilization of Resources. In April2002, we began indicating five potential allergens (wheat,milk, peanuts, eggs, and buckwheat) as required for labeling.We also began labeling 20 allergens on the labels of generalconsumer products in fiscal 2004, as recommended by theJapanese government. Moreover we display other information,including product attributes, appropriate volume of use,and cooking and disposal methods, that are useful whenconsumers purchase, use or dispose of a product. Theprincipals of universal design* are incorporated in thedevelopment of packaging, in order to make the printing easyto see, the explanations easy to understand, and the packageseasy to open.* Universal design aims to make products easier to use for the greatest number of people,
regardless of their age or physical abilities, based on the concept of “design for all people.”
As the direct connection between customers and AjinomotoCo., Inc., the Customer Service Center serves as an importantpipeline of information. The Center responds precisely,promptly, and politely to inquiries, comments, and requestsfrom customers, and conveys the resulting information toeach marketing department. We also have a system ensuringthat the information obtained from customers is applied to thedevelopment and improvement of products and services,including databases used to search inquiry details on thecompany’s intranet.
Personal information management systemThe Ajinomoto Group takes responsibility for managing all in-house information including the personal information ofcustomers, according to the Ajinomoto Group InformationSecurity Policy establ ished in Apri l 2004. Informationmanagement regulations have been set up at the Groupbased on this policy to ensure proper information management.We are working to improve information security for the entireGroup so that the ever-increasing volume of data can besafely handled.
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Product designs and labeling Communication with customers
Use and labeling of food additives and GMOsThe Ajinomoto Group makes strict checks on the safety andusefulness of food additives and GMOs, and extends these totheir use and labeling. We believe that inviting unnecessaryconfusion is not beneficial, especially for the consumer, andtherefore avoid labeling methods such as “Additive XX-free” or“No XX” that may give consumers doubts about GMOs andfood additives recognized as safe based on governmentstandards and scientific research.
Food additivesIn addition to the enhancement of our dietary lifestyles throughbetter flavor, aroma, nutritional content, and storage stability, foodadditives play an important role in the distribution and effectiveutilization of food resources. Food additives have been confirmedas safe based on a range of rigorous tests. The Ajinomoto Grouppresents this information accurately on containers and packaging.
GMOsThe Ajinomoto Group regards genetically modified organisms(GMOs) as an important technology that is expected to play a hugerole in the alleviation of environmental problems and foodshortages. However, it is also important to thoroughly check thesafety of GMO foods. Based on the labeling standards stipulated by the government,we provides the necessary information to consumers, and use ourown detection technology in order to prevent inadvertentcontamination by ingredients containing unapproved GMOs.
Case study: Applying the voice of the customerWe have made various product improvements based on the voiceof the customer. For example when customers pointed out thatthe preparation method printed in orange on the silver inner-linerpouch of Cook Do stir-fry sauce with minced meat for Ma-Po Dou-Fu (mild) was difficult to read, we changed the print to green. Wealso added a warning note about the pouch opening method.
Before improvement After improvement
Packaging /containers1%
Raw materials /manufacturing method
7%
Best before date20%
Retailers12%
Nutrition facts4%
Usage method11%
Safety5%
Varieties / price9%
Other30%
Sales promotion1%Inquiries
78%
Requests7%
Complaints13%
Proposals1%
Comments1%
Categoriesof inquiry
About 50,000 customers' feedbackregarding retail products in Japan in FY 2004
The Ajinomoto Group always seeks to carry out opentransactions with every business partner with regard to theselection of suppliers and business contractors, based on theAjinomoto Group Standards of Business Conduct. We selectour business partner based on a fair comparison of factorssuch as price, quality, and service, and consideration of thepast results, technical ability, reliability and business expertise.
The Purchasing Department and Food Product Raw MaterialProcurement Department of Ajinomoto Co., Inc. carry outregular and special quality audits of business partners accordingto an annual audit plan. This is to ensure proper qualitymanagement of the entire supply chain, along with support forthe improvement of quality levels at our business partners.
In June 2004, we established the Ajinomoto Group GreenProcurement Guidelines, requiring our business partners to setup environmental management systems. In the future, wewill remind business partners that have not yet adopted anenvironmental management system about the Group’s greenprocurement approach. If requested, we will also provideadvice to these business partners on how to set up thenecessary environmental management system.
Socially responsible investment (SRI), which was widelyintroduced in the 1980s in the U.S. and Europe and hasgradually gained popularity in Japan and Asia, refers toinvestment in companies that are highly regarded for theirperformance in social, ethical and environmental aspects, aswell as their solid financial position.Ajinomoto Co., Inc. is highly evaluated by domestic andoverseas evaluation organizations and as of June 2005, it hasbeen included in the FTSE4 Good Index Series, an SRI indexcreated by the FTSE Group, a joint venture of the FinancialTimes Ltd. and the London Stock Exchange plc. Many SRIfunds in Japan and abroad invest in Ajinomoto Co., Inc.
Ajinomoto Co., Inc. seeks to establish close relationshipswith investors by providing information that is t imely,appropriate, accurate, fair, voluntary, and facilitated byongoing communication.We manage to offer opportunities for direct communication withinstitutional investors and analysts, which include semi-annualmeetings on financial results, specific business presentations,tours of our facilities and interviews.The materials provided to institutional investors and analystsare available on our Japanese- and English-language web sitesso that we can provide the same quality information to individualinvestors and investors overseas. We also publish annualreports and fact sheets on our web sites and mail them uponrequest. In addition, the Intellectual Property InformationDisclosure has been published since 2004.We str ive to have opinions of and requests from ourshareholders and investors, as well as information receivedthrough IR activities, reflected in our management includingcorporate governance, environmental management andbusiness strategies.
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We aim to grow together with our business partners bycarrying out fair business transactions. We also strive toachieve recycling-oriented production for high quality andminimal environmental impact in order to contribute tosocial sustainability.
With Business PartnersWe strive to perform timely and adequate disclosure ofcorporate information and maintain open dialogues withshareholders and investors.
With Our Shareholders and Investors
Fair transactions
Quality audits
Environmental management
Socially responsible investment (SRI)
Communication
Quality audit of a business partner
Investor information is also available on the web at: http://www.ajinomoto.com/ar/
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Food and nutrition education has been attracting attention recently as ameans for advancing understanding of dietary culture and customs at schooland at home. In fiscal 2004, Ajinomoto Co., Inc. started the educational FoodGarden program . This program provides children an opportunity to learn theimportance of food and nutrition and to feel appreciation for people andnature by gaining the experience of growing crops themselves. Under the slogan,“Experience the flavor and give thanks for people and nature,” programparticipants are given a unique learning experience in a cultivation class, in whichthey grow vegetables and make observations, and create Japanese-stylepaintings called “haiga.” The children alsoprepare and eat the harvested vegetablesand learn about local dishes, as well ascooking and lifestyle customs.In fiscal 2005, about 5,000 elementaryschool students participated in the programin the Hokkaido, Kanto, Kansai, and Kyushuregions. We provided participants withseedlings, plant pots, soil, garden posts andchildren’s activity notebooks. Harvest time
The Ajinomoto Group recognizes that making the21st century a century of abundance and fulfilledwishes is a common challenge of humanity, as theworld now faces many problems, ranging from theenvironment to poverty, human r ights, andeducation. As a good corporate citizen, we promotethe Group activities aimed at realizing a healthyand vibrant society. We do this by treating theEarth’s many problems as our own challenges.Focusing on activities that deal with the theme ofFood and Health in our Group philosophy, we worktogether in cooperation with outside organizationstoward achieving a better life for people throughoutthe world.
We are committed to being a good corporate citizen by considering the life and culture of each community,helping to build a sustainable, recycling-oriented society, and promoting the development of the localcommunities where we do business.
With Local Communities
Corporate citizenship activities
Japan
Thailand
Philippines
Malaysia
Indonesia
Singapore
Vietnam
Cambodia
China
Bangladesh
U.S.A.
Brazil
Peru
EU
Nigeria
Food and nutrition education / international understanding
Social welfare / education support
Community interaction
Community interaction / social welfare
Environmental preservation / donations
Community interaction
House building / disaster support
Education support
Charity events
Environmental preservation
Education support
Environmental preservation
Charity events
Dietary culture / education support
Social welfare / education support
Social welfare / education support
Social welfare / education support
Research and development support
Nutrition education / nutrition improvement*
Nutrition improvement / local development*
Rural development*
Nutrition improvement
Nutrition improvement*
Nutrition improvement*
Nutrition improvement
AJINOMOTO GROUPCITIZENSHIP DAY
Global programs, AIN Regional programs Foundation activities Employee volunteeractivities
Asia
NorthAmerica
SouthAmerica
Europe
Africa
* Currently supporting
Map of corporate citizenship activities by region and program
●Global ProgramsActivities that are carried out on a global basis under a unified theme
●Regional ProgramsActivities of each company and operational site of the AjinomotoGroup, based on community needs
● Foundation Activities Activities by the various foundations of the Ajinomoto Group, basedon their specific management policies
● Employee Volunteer ActivitiesSocial activities undertaken voluntarily by employees
Information on our corporate citizenship activities is also available on the web at: http://www.ajinomoto.com/social/
Food Garden
In 2003, the Ajinomoto Group established the AjinomotoGroup Human Resources Principles, which consist of theAjinomoto Group HR Values and the Ajinomoto Group HRManagement Policy. Based on one of the HR values, whichsays “the future of Ajinomoto is you,” we have clearlydescribed the type of employee we are looking for, and haveimplemented appropriate employee education and humanresources measures.
Employment of persons with disabilitiesSince fiscal 2003, Ajinomoto Co., Inc. has maintained, a levelof employment of persons with disabilities that exceeds the1.8% mandated by law. Going forward, the Ajinomoto Groupwill consider its efforts to employ persons with disabilities animportant part of its corporate social responsibility, more thana matter of compliance with the letter of the law.
Fostering human resources in the global arenaThe Ajinomoto Group is dedicated to developing world-classhuman resources, the key to further growth of its business asa corporation with a network in 23 countries and regions, andas a leading amino acid company. In April 2004, we started theGEM* program to promote and appoint high-caliber peoplefrom the Group’s worldwide employee base.*GEM: Group Executive Manager
The Ajinomoto Group is developing a system that enables eachemployee to work actively with a healthy mind and body. Weare committed to respecting our employees’ diverse valuesand to creating work environments that ensure a positivework/life balance.
Dealing with harassment and promoting mental healthThe Ajinomoto Group has established external and internalconsulting services for employees and has been employingquestionnaires related to harassment since fiscal 2003.We regard mental health care as indispensable to the creationof work environments that ensure a positive work/life balance.During routine physical examinations, company physiciansinterview all employees. Moreover, employees who exceed acertain amount of overtime work in a single month are givena questionnaire and an interview.
Human rightsIn accordance with the Ajinomoto Group Standards of BusinessConduct, the Aj inomoto Group prohibits al l forms ofdiscrimination. Ajinomoto Co., Inc. deploys human rightsawareness plans and conducts human awareness trainingfocusing on the significance of corporations addressing humanrights issues as well as familiar human rights concerns.
Emphasizing job satisfactionAjinomoto Co., Inc. has established a Parenting Leave Program,Part-time Parenting and Working Program, and ChildcareLeave Program and other systems that enable employees tocontinuously demonstrate their potential in the workplaceduring the childbearing years, and while raising children.These programs reflect the opinions of employees to theextent possible. We also established a Family Care LeaveProgram as one response to the aging of the population. Wewill continue improving these programs in response to socialchanges to ensure they are easy for employees to use, and weplan to implement carefully designed policies in accordancewith the Law on the Promotion of Measures to SupportFostering of the Next Generation.
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We value the happiness of employees and their families, and strive to facilitate employees’ self-fulfillment. We arecommitted to accepting the values of diverse individuals and fostering a global workforce. We aim to develop ourselveswith our corporate vision—Advancing from Japan to the global arena as a leader in foods and amino acids.
With Our Employees
Employment and fostering human resources Work environment
Japan40%
Asia44%
Europe6%United States
10%
Percentage ofnon-Japanese executives32%
Total: about 30,000
The Ajinomoto Group employees, by region
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Our awarenessThe Ajinomoto Group has a steady history of voluntarilyacting to reduce environmental impact by treating plantwastewater and working to save resources, etc., in additionto complying with environmental regulations and preventingenvironmental pollution. Nevertheless, it is true that wegenerate certain environmental loads and affect the globalenvironment due to the sheer scale of our global businessactivities. This is a challenge that we—whose businessactivities use the bounty of the global environment, includingagricultural, forestry, and fishery resources, as raw materials—are committed to environmental sustainability and developmentof our business.
Our goalsWe are therefore ultimately aiming to reduce environmentalimpact by achieving zero emissions—that is, the eliminationor minimization of environmental load. The Ajinomoto GroupZero Emissions policy means to minimize every environmentalload generated from all aspects of our business activities, notonly from production activities. This is accomplished based onour unique, group-wide unified standards, regardless of theexistence and the level of regulatory requirements in countriesor regions.We established the 2005-2010 Ajinomoto Group Zero EmissionsPlan, which specifies items to be addressed and concreteachievement targets, as an action plan to follow until 2010. Theachievement targets include items that are about ten times morestringent than targets in current laws and regulations. We areconfident that aggressively rising to the challenge of meetingsuch high targets will stimulate our creativity, enabling dramatictechnological innovations. This will assure we contribute to thesustainable development of the environment and our business.
We strive to reduce environmental impact through incorporating resource recycling processes and aggressivelypromoting technology development under our Zero Emissions policy. We also work to develop our business whiletaking into consideration the environments and ecosystems of the local communities upon which we depend. We willalways present our activities from the perspective of all stakeholders.
For the Global Environment
Ajinomoto Group Zero Emissions
Fiscal 2004 Results of Activities ISO 14001
Energy consumption
Efficientenergy use
Minimizingwastewater load
Resource recovery ratioof 99% or greater
Ajinomoto Group Business Activities in 2004 (about ￥1.1 trillion in sales)
CO2
2 million tons
Water consumption
Wastewater 200 million tons
Raw material consumption
By-products, etc.2 million tons
Waste,Waste products,
Energy consumption
CO2
Water consumption
wastewater
Raw material consumption
2005-2010 Ajinomoto Group Zero Emissions Plan
by-products, etc.
waste,waste products,
Ajinomoto Group business activities in 2010 (about ￥1.5 trillion in sales)
About 80-90% of our main environmental impact is generatedby our fermentation-related business. The unit CO2 emissionof the fermentation-related business has been reduced by 22%
from fiscal 2001. In terms of efforts to recycleby-products and waste, we achieved an overallresource recovery ratio of 97.8%. The salesdivision of the Group in Japan has promotedthe reduction of waste products.
We have adopted ISO 14001, the international standard forenvironmental management systems, as a basic tool forenvironmental management. We intend to acquire certificationat all business sites that have important environmental aspects.
Resource recoveryratio
97.8%
2004 2005
Results up to fiscal 2004Plan for fiscal 2005-2007
2007 (FY)
Cumulative numberof certified sites 111
128
65
Information on the environmental conservation is also available on the web at: http://www.ajinomoto.com/environment/
For a more in-depth look at the CSR activities of the Ajinomoto Group
Ajinomoto Group WebsiteCSR Activitieshttp://www.ajinomoto.com/csr/For full details on the Ajinomoto Group’s CSR activities and a downloadable file of the complete the Ajinomoto Group CSR Report 2005. We look forward to receiving any feedback you may have.
Ajinomoto Group CSR Report 2005This marks the sixth edition of this report, our formar environmental report, and we have made an effort to keep this report focused on the future, including the Ajinomoto Group activities to help create a sustainable society. In order to increase its reliability, we sought the opinions of three outside independent experts, and presented the activities of the Ajinomoto Group in an easy-to-understand format.
About the Cover ImageDo you recognize the image on the cover of this
report? It is a lengthwise cross-section of sugar
cane. Sugar cane is a well-known source of sugar,
and the Ajinomoto Group uses it as a raw material
for the production of amino acids. By adding
fermentation microbes to sugar cane molasses, we
produce a range of amino acids including glutamic
acid, the main component of AJI-NO-MOTO umami
seasoning. At the plants in Brazil and Thailand, we
use locally grown sugar cane as the raw material
for the production of amino acids.
For inquiries about this publication:
CSR Department, CSR Division, Ajinomoto Co., Inc.15-1, Kyobashi, 1-chome, Chuo-ku, Tokyo 104-8315, Japan
This report is printed on Forestry Stewardship Council (FSC) certified paper, which is made from trees grown in responsibly managed forests. The only exception is the paper for the cover, which is made of bagasse (sugar cane fiber). Vegetable-based ink derived from soybean oil was used in the printing of this publication, in order to reduce the emission of volatile organic compounds (VOCs), a cause of air pollution. The printing method for this report does not generate any harmful wastewater.
