Basic approach and policy

Our Group considers pollution and waste initiatives as important business issues and has established an Environmental Safety Policy focused on the following themes: odor countermeasures and environmental pollutant emissions reduction, resource and water conservation, and promotion of effective use of waste products. We have set targets for volatile organic compound (VOC) emissions, landfill waste, the effective utilization rate of waste products, etc., and are working to reduce pollution and waste and promote the effective use of waste products.

Governance and risk management

For more details, please refer to “Environmental Management”.

Strategies

Risk reduction

• Effective use of waste products and installation of sufficient deodorizing equipment

Selection of waste service companies

For waste treatment companies handling waste for which we bear responsibility as the generator, we inspect treatment sites to ensure proper waste treatment; verify the details of their licenses and permits, treatment methods, and treatment capacity; and select companies while considering the effective utilization of waste products. We also conduct regular inspections even after the outsourcing contract is signed, and we confirmed that there were no issues in FY2025.

Management of waste products

With regard to in-house waste product management, we conduct an environmental safety audit once a year, as well as environmental management system (EMS) audits at ISO 14001 certified sites, to verify the status of management operations. If any issues are identified, corrective actions are promptly taken.
During the FY2025 environmental safety audit and EMS audit, it was confirmed that management was properly conducted.

Effective use of waste products

Our Group manufactures a diverse range of flavor and fragrance products, which generate various waste. We work to effectively use such waste and proactively promote resource recycling of waste cans, paper, waste glass, oil, and so on. We also work to limit the generation of landfill waste.
Regarding our effective utilization rate of waste products, the target is to maintain an effective utilization rate of 95% or higher by FY2030, using FY2022 as the base year. The effective utilization rate of waste products for FY2025 was 96.4%.
The target for landfill waste is to maintain zero landfill waste through FY2030, using FY2022 as the base year, which we achieved in FY2025 as well.
We outsource the treatment of cans with a low risk of odor transfer to a company that manufactures recycled cans and the treatment of certain waste liquids to another company with recycling technology.
As seen in the enforcement of the Act on Promotion of Resource Circulation for Plastics (Plastic Resource Circulation Act) in Japan in 2022 and the intergovernmental negotiations to formulate a legally binding international document (treaty) concerning plastic pollution, we recognize the reduction and waste treatment of plastics as issues that require a more serious response.
Due to the characteristics of the flavor and fragrance products primarily manufactured and sold by our Group, plastic containers require high barrier properties. Even after filling, residual odors remain in the containers after use. Currently, the odor removal process results in increased GHG emissions and presents other challenges. Although it is difficult to reduce plastic containers, we separate plastics used within the Company that can be recycled and then make an effort to use them effectively.
At Koumi Compost Co., Ltd. in Koumi-machi, Minamisaku-gun, Nagano (45% investment by the Company), the large amount of residue generated after extracting natural products (botanical residue) from our Company goes through fermentation composting for use by highland vegetable farmers, as part of its efforts to effectively use waste products. In addition, from the viewpoint of stable procurement of domestic raw materials for flavors and fragrances and the realization of a circular economy, the Company is conducting experimental cultivation of lemongrass using this compost in Koumi-machi.

Vegetable field (Koumi-machi, Nagano)

Laying compost (Koumi-machi, Nagano)

Odor measures

As a company that manufactures flavors and fragrances, we pay extra attention to odor measures (Offensive Odor Control Act). We work to prevent the emission of odors by adopting deodorizing equipment using various deodorizing technologies. As a member of the local community, we also strive to build and strengthen relationships of trust with local governments and residents. At our R&D Center and Fukaya Production Center, we regularly conduct environmental (odor) patrols of the premises and surrounding areas.

Dust collection measures

At our facilities, dust collectors are installed in some manufacturing divisions as part of our efforts to improve the work environment during manufacturing.

Chemical substance management

Compliance with laws and regulations on chemical substances

The components of flavors and fragrances that we handle are chemical substances, so we ensure compliance with the relevant laws and regulations as outlined below.

• Application for the registration of new compounds based on domestic laws
• Issuing Safety Data Sheets (SDSs) in accordance with the Globally Harmonized System (GHS)
• Managing information and responding to international chemical regulatory trends and domestic legal revisions
• Response of overseas subsidiaries

Product risk assessment (risk assessment of chemical substances)

At the Production Division, we conduct risk assessments of chemical substances based on the SDSs of raw materials and intermediate products, consider risk reduction measures, and reflect the results in work procedures. Factory employees regularly receive education on the danger, harm, and appropriate handling of chemical substances and chemical regulations in and outside Japan.
The R&D Center conducts risk assessments of all chemical substances used in the factories according to the Industrial Safety and Health Act, prepares a measure sheet according to the risk level, and puts it on the intracompany website.
At our overseas subsidiaries, we also implement management measures according to the actual situation there while ensuring compliance with local laws and regulations.

Management of substances subject to PRTR

At the Production Division, we specify substances subject to the Pollutant Release and Transfer Register (PRTR) and other substances to be voluntarily controlled, and manage their emissions.
For more details, please refer to “Quality Safety”.

Indicators and targets

We have set targets for volatile organic compound (VOC) emissions, landfill waste, and effective utilization rate of waste products, which are causes of air pollution, and is working to reduce pollution and waste and promote the effective use of waste products. In FY2025, we maintained a high level of achievement, with zero landfill waste and an effective utilization rate of 96.4%.
For more details, please refer to the T.HASEGAWA Group ESG Data Book (PDF).