Regulatory and Reputational Risks Associated with Marine Plastic and Climate Change Issues

「In particular, countries around the world are considering and enacting specific laws as solutions to these environmental issues, including the introduction of carbon taxes, taxes on plastic packaging, responsibility for monitoring the life cycles of packaged products, and laws related to resource circulation strategies. As part of our measures to address these developments, our management strategy, “FSG.30,” sets GHG emissions as a key management indicator in order to promote the supply of environmentally friendly products and the efficient use of resources and energy throughout the supply chain, including within our own operations.」

「During the interim consolidated accounting period, there were no new business risks or material changes to the business risks described in the securities report for the previous fiscal year.」

「In particular, countries around the world are considering and enacting specific laws as solutions to these environmental issues, including the introduction of carbon taxes, taxes on plastic packaging and laws related to resource circulation strategies. As measures to address these developments, we have for some time been reducing the use of resources, including raw materials and energy, in manufacturing and reducing waste, while also supporting the 3Rs for containers (reduce, reuse and recycle), developing thinner packaging materials and providing machinery compatible with them, rolling out energy-efficient machinery, supplying products using plant-based and recycled materials, using water-based inks, and developing and rolling out efficient transportation methods.」

「We recognize that our operating results and financial position could be affected by increased costs of complying with new regulations amid growing environmental awareness worldwide, as well as reputational damage caused by delays in responding to changes in the enforcement policies of regulators, customers, investors and others.」