Doing Business in Harmony with the PlanetSince the Ajinomoto Group’s business depends on making the most of nature’s blessings, the Group recognizes that biodiversity and natural capital are finite and must be maintained and conserved.Committed to growing its business with a commitment to the healthy and prosperous future of people and the planet, the Ajinomoto Group works with diverse stakeholders to help build a more sustainable world.

Special Feature 3

Global sustainability issues

1 United Nations Millennium Ecosystem Assessment2 Chartering Our Water Future (The 2030 Water Resources Group)

Projected increase in global water demand by 2030,

compared to current level of supply

+40％2

Water resources

Projected increase in global mean surface temperature

over roughly the next century, assuming global economic growth and dependence on

fossil fuels continue on today’s trends

+4°C4

Global warming

Percentage of ecosystem services that will be lost by the

22nd century

-60％1

Biodiversity

Rate of global deforestation from 2000 to 2012

13

Forest resources

3 Global Forest Resources Assessment 2010 (FAO)4 Contribution of Working Group I to the Fourth Assessment Report of the Intergovernmental Panel on Climate

Change, 2007 (IPCC)

million hectares annually3

29 Ajinomoto Group Sustainability Report 2014

The term “ecological overshoot” refers to a state in which the annual hu-man demand on the environment exceeds the planet’s annual capacity to regenerate itself. The decline in biocapacity per capita is primarily due to the increase in global population.

5 One global hectare (gha) represents the average productivity of all biologically productive areas on earth measured by hectares of land.

Source: Living Planet Report 2012 (World Wildlife Fund)

Ensuring That Business Operations Help to Conserve Ecosystems and Biodiversity

Trends in ecological footprint and biocapacity per person between 1961 and 2008

50% deficit

Overshoot

200820001990198019701961

3.5

Global hectares per capita5

3.0

2.5

2.0

1.5

1.0

0.5

0

Biocapacity (Supply)

AreaArea BioproductivityBioproductivity

Ecological Footprint (Demand)

PopulationPopulationConsumption

per personConsumption

per personFootprint intensity

Footprint intensity

Environment Vitalizing Concrete was developed jointly by the Ajinomoto Group, Nikken Kogaku Co., Ltd. (a leading supplier of wave dissipation blocks), and the University of Tokushima’s Department of Ecosystem Design (headed by Professor Yasunori Kouzuki). The blocks contain amino acids which promote algae growth, making the most of amino acid technology to vitalize marine environments.

Environment Vitalizing Concrete

Conventional concrete

Human economic activities in the 20th century have jeopardized the health of the planet and human society. The “triple bottom line” (TBL) concept urges comprehensive assessment and balance in social, environmental, and financial performance. Yet TBL fails to adequately account for the depletion of planetary resources and the diversity of today’s stakeholders.

It is now widely understood that human economic activity depends on society and the global environment, which supports everything. In the business world, a healthy global environment is increasingly viewed as natural capital, a prerequisite for profitable economic activities.

Research is showing that consumption and demand from humans is exceeding the planet’s biological production capacity. Moving forward, companies need to examine how they do business, to ensure that they meet growing demand from the people while working within the planet’s means.

The Aichi Biodiversity Targets of the Convention of Biological Diversity are specific global goals for realizing a 21st century green (sustainable) economy. They set the expectation that businesses “have taken steps to achieve or have implement-ed plans for sustainable production and consumption and have kept the impacts of use of natural resources well within safe ecological limits.” Companies are expected to move quickly to business models that are right for the planet; only this kind of responsible corporate activity will ensure sustainable growth.

In this context, the Ajinomoto Group is closely watching the global environment and ecosystems while making every effort to reduce its impact on them. Most importantly, it strives to ensure that its business activities themselves contribute to—rather than detract from—efforts to conserve and improve the planet’s biological productivity. The Group takes special care to ensure the sustainable procurement and use of natural resources—the agricultural, forestry, and fishery resources that its business depends on, and also supports.

The Ajinomoto Group Environmental Philosophy and Basic Environmental Policies identify ecosystem conservation as of fundamental importance to the Group’s business, while the Ajinomoto Group Biodiversity Policy and Action Agenda intro-duced in 2012 designates biodiversity action as one of the most urgent issues facing the Group. The Ajinomoto Group also conducts various studies and practices management designed to ensure the sustainable procurement of important raw materials for business.

At the same time, global ecosystem and biodiversity issues are of a scale and complexity beyond what a single corporation can address. Collaboration and cooperation with external stake-holders is needed to realize far-reaching initiatives based on the big picture of the global environment. The Group is committed to working with like-minded companies and industries, and with communities, government agencies, NGOs, non-profits, research institutes, and will broadly pursue multistakeholder initiatives.

Corporate responsibility to conserve biodiversity

Taking leadership in the area of corporate social responsibility

See “Pursuing CSR Procurement” on p. 47.Reference

See “The Ajinomoto Group Environmental Philosophy and Basic Environmental Policies” on p. 75.

Reference

See “The Ecological Business Model of the Ajinomoto Group” on p. 77.Reference

See “Conserving Ecosystems and Biodiversity” on p. 84.Reference

30Ajinomoto Group Sustainability Report 2014

Fisheries Agency project

Waters surveyed since FY2009

Waters along the Kuroshio current, from the

southwest islands to west coast of Japan

Joint project between Fisheries Research Agency

and Ajinomoto Co., Inc.

Skipjack catch in western and central Pacific Ocean by fishing method (1950–2012)

Skipjack surveys in Japan

19901980197019601950

2,000

Catch (kilotonnes)

1,800

1,600

1,400

1,200

1,000

800

600

400

200

02000 2010

Pole and line

Other

Purse seine

From Nature to Table, Sustainably Special Feature 3 Doing Business in Harmony with the Planet

Skipjack are a globally used marine resource broadly distributed in the tropical to temperate waters of all three oceans, wherever sea surface temperatures are 15 degrees Celsius or higher. During the 1950s, the global skipjack catch was around 200,000 tonnes, but with increased use of purse seine fishing since the 1980s, the global catch has kept rising. Today, it is estimated at around 2.6 million tonnes annually, a tenfold increase in 50 years. In the western and central Pacific Ocean, the main fishing ground for skipjack, the annual catch is around 1.7 million tonnes. Skipjack is consumed around the world and is typically processed into canned tuna.

The skipjack catch is one of the largest of any fish, making sustainable use of skipjack resources important to the world’s food supply. The Commission for the Conservation and Management of Highly Migratory Fish Stocks in the Western and Central Pacific Ocean (WCPFC1) advises that skipjack stocks should not be in an overfished state, nor subject to overfishing. Going further, rational and effective management strategies must be developed based on scientific knowledge of skipjack ecology in its current healthy state. 1 An international organization which manages yellow fin and skipjack tuna resources in the Western and

Central Pacific Ocean.

Skipjack, which is used to make HON-DASHI, is typically caught in tropical waters in the western and central Pacific Ocean. Ajinomoto Co., Inc. buys dried bonito made and processed by bonito producers, and has no direct involvement in skipjack fishing and stock management. However, as an indirect user in the supply chain, the company is dependent on skipjack stocks and benefits from skipjack resources, giving it a responsibility to assist with conservation and sustainable use of skipjack stocks.

Since fiscal 2009, Ajinomoto Co., Inc. has been involved in the Joint Tagging Survey of Skipjack off the Pacific Coast of Japan, in collaboration with the National Research Institute of Far Seas Fisheries (NRIFSF) of the Fisheries Research Agency. It is the first project of its kind in which the agency is working with a private sector company that has no direct involvement in the fisheries or marine industry. The survey has groundbreak-ing importance as an example of basic research being conducted with a long-term social goal, which is to promote the sustainable use of natural resources. It is playing an important role in eluci-dating skipjack migration patterns in coastal waters and is providing parameters for resource evaluation models, assisting Japan’s Fisheries Agency in its efforts to formulate an overall plan for the nation to track skipjack stocks.

Global skipjack stocks Joint project to conserve skipjack stocks

See “Joint Tagging Survey of Skipjack off the Pacific Coast of Japan sheds light on skipjack biology” on p. 86.

Reference

CSPU brochure prepared by WWF Japan

CSPU logoMeeting of Japanese corporations interested in promoting sustainable palm oil

11th Annual Roundtable Meeting on Sustainable Palm Oil (RT11) Meeting of the Consortium for Sustainable Paper Use

Active discussion at the RSPO’s RT11

The Roundtable on Sustainable Palm Oil (RSPO) is a non-profit organization whose purpose is to promote the production and use of sustainable palm oil by developing certification standards. Ajinomoto Co., Inc., which uses some 3,000 tonnes of palm oil annually, and J-OIL MILLS, INC., which mainly engages in the oil milling business, are active members of RSPO.

Recognition in Japan of sustainable palm oil remains low. The volume of palm oil handled in the Japanese market is relatively small compared with other parts of the world, which hinders access to new information and is an obstacle to action by Japa-nese companies.

At the 11th Annual Roundtable Meeting on Sustainable Palm Oil held in Medan, Indonesia in November 2013, WWF Japan and RSPO member corporations from Japan agreed that like-minded Japanese corporations should work collaboratively to promote sustainable pam oil. As a result, discussion meetings are taking place with the involvement of a wide range of stakeholders in Japan, centering on corporations including Ajinomoto Co., Inc.

Paper is an essential resource for everyday life and corporate activities. Paper can only be recycled a certain number of times, so a certain amount of virgin pulp must inevitably be used. The same is true for applications where recycled paper cannot be used.

Japan is a heavy producer and consumer of paper, ranking third highest in the world, with per capita consumption four times higher than the average worldwide. Japan imports many paper products and raw materials and therefore it is deeply connected to issues that affect the planet’s forest ecosystems.

The Ajinomoto Group issued the Guidelines for Procurement of Environmentally Responsible Paper in January 2012. The Group is working to procure and use paper sustainability and to promote sustainable paper use in the broader society, consider-ing the impact of Japan’s paper use on forest ecosystems. It is also involved in the Consortium for Sustainable Paper Use (CSPU), which was established by WWF Japan, Response Ability, Inc., and other companies leading the way in promoting sustainable paper use.

Promoting sustainable palm oil in Japan

Sustainable paper use

See “Promoting certified sustainable palm oil” on p. 49.Reference See “Sustainable paper use” on p. 49.Reference

See “Conserving Ecosystems and Biodiversity” on p. 84.Reference See “Conserving Ecosystems and Biodiversity” on p. 84.Reference

Information on the Consortium for Sustainable Paper Usehttp://gftn.panda.org/newsroom/newsletters/?220510/GFTN-Newsletter---April-2014

Link

32Ajinomoto Group Sustainability Report 2014

Minimizing the Environmental Impacts of Production Activities

Resource recovery ratio: 99.2％

Water consumption:-71％

CO2 emissions:-26％

Resource recovery ratio for the Ajinomoto Group in fiscal 2013

Water consumption per unit of production for the Ajinomoto Group in fiscal 2013 (compared to fiscal 2005)

CO2 emissions per unit of production for the Ajinomoto Group in fiscal 2013 (compared to fiscal 2005)

Settlement tank for wastewater treatment facilities, Bien Hoa Factory, Ajinomoto Vietnam Co., Ltd. Aeration tank for wastewater treatment facilities, Kamphaeng Phet Factory, Ajinomoto Co., (Thailand) Ltd. Settlement tank for wastewater treatment facilities, Valparaiso Factory, Ajinomoto do Brasil Ind. e Com. de Alimentos Ltda.

Wastewater treatment plant using biological nitrogen removal technology, Callao Factory, Ajinomoto del Perú S.A.

Checking activated sludge at the Callao Factory of Ajinomoto del Perú S.A.

Special Feature 3 Doing Business in Harmony with the Planet

Amino acid production uses a large amount of water and energy, and represents a significant part of the Ajinomoto Group’s environmental impact. Fiscal 2005 was the first year of the Ajinomoto Group Zero Emissions Plan. The plan aims to mini-mize environmental impact generated in all business fields. It sets numeral targets for reduction of CO2 emissions, pollutant load in wastewater, and waste. Performance data on these targets is reviewed in detail every year.

Under the 2011–2013 Ajinomoto Group Zero Emissions Plan, water-saving activities made significant progress, and the targets were achieved. Targets for CO2 emissions per tonne of product were not achieved. The main cause was that the business sites which produce heavy products, i.e. beverages and transfusions, were excluded from the scope.

The 2014–2016 Ajinomoto Group Zero Emissions Plan started this year. The new plan was made after reviewing the results of the previous mid-term plan.

Working together on global targets, each site doing its part

See “Ajinomoto Group Zero Emissions Plan (AGZEP) and Fiscal 2013 Results” on p. 81.

Reference

Wastewater management at the Kawasaki PlantHighlight

The Kawasaki Plant of Ajinomoto Co., Inc. was opened in 1914 near the Tama River, surrounded by untended fields and farming plots. Today, a century later, Kawasaki City has become a suburb of Tokyo and people now live next to the plant. The changes in the sur-rounding community have made it even more important to manage discharged water and odors from the plant.

New wastewater treatment facilities were built at the plant in 2012, in order to treat some 4,000 cubic meters of discharged water every day, an amount equivalent to the output from 5,000 house-holds. The facilities employ microbial processes for organic and nitrogen decomposition and processes that separate sludge from supernatant water.

The Kawasaki Plant, which makes food and amino acids, manu-factures different products from day to day, which changes the com-position of the discharge water. In these circumstances, plant staff carefully control the operation of the wastewater treatment facilities to achieve and maintain the Ajinomoto Group Zero Emissions Plan Targets.

There is growing emphasis today on water risks. As a company that relies extensively on water resources in its business activi-ties, the Ajinomoto Group is committed to further addressing water risks.

The Ajinomoto Group has outlined standards for water quality and water supply when choosing the location of plants, and engages in ongoing development of processes to minimize water required for amino acid production.

In addition to these initiatives, the 2014–2016 Ajinomoto Group Medium-Term Environmental Plan calls for new ground-water measures. Groundwater is a valuable water resource, but it is vital to understand and control its particular risks, since it is difficult to recharge or circulate it once it is withdrawn. To assess the risks, the Group surveyed the state of groundwater usage at its plants around the world and found that groundwater is managed in compliance with local regulations and that risks are verified regularly. Based on this result, the Group believes that its groundwater risk is currently low. It will, however,

Comprehensive management to reduce water risks

continue studying issues relating to local water sources and take any action needed.

The Group is also working on other issues that could be-come operating risks, such as discharged water volumes and quality. The Ajinomoto Group Zero Emissions Plan outlines specific target values for reducing discharged water volumes and lowering concentrations of substances that need to be processed in discharged water. The composition of discharged water from plants varies depending on the product that is being manufac-tured. For instance, the discharged water from amino acid production contains high levels of nitrogen. Accordingly, the Group introduces wastewater treatment facilities tailored to each plant and manages wastewater carefully.

Moving forward, the Group will investigate avenues for using ecosystems to purify discharged water, such as discharg-ing water into man-made biotopes that reproduce local environ-mental conditions on its plant premises.

See “Conserving Water Resources” on p. 98.Reference

See “Developing Technologies and Products That Contribute to Global Sustainability” on p. 87.

Reference

See “Ajinomoto Group Medium-Term Environmental Plan” on p. 79.Reference

34Ajinomoto Group Sustainability Report 2014