Yatte Minahare: Advancing climate action through the spirit of bold ambition

This year’s United Nations annual climate change conference, COP26, is aptly timed – a crucial deadline for more aggressive commitments toward the goals of the Paris Agreement. Talks have centered around four key objectives: “Secure global net zero by mid-century and keep 1.5 degrees within reach; adapt to protect communities and natural habitats; mobilize finance; and work together to deliver.” An August 2021 report from the United Nations’ Intergovernmental Panel on Climate Change (IPCC) makes clear that swift and immediate reductions in greenhouse gas (GHG) emissions is vital to achieving net zero emissions by 2050 and maintaining a 1.5°C global warming threshold. UN Secretary-General António Guterres has said the report should be “a code red for humanity.”

I believe the last goal of the COP26 conference – focused on working together – is especially pertinent. Leaders from government, business, and civil society must all be ready to commit to ambitious action – together. As countries come forward with accelerated targets and put strong climate policies in place to reach net zero, the private sector must play a fundamental role in reducing emissions and protecting our planet within the next decade and beyond.

As a global beverage company, we believe it is our responsibility to be a leader in the transition to a net zero future. It’s also essential for us to remain transparent in what we’re doing and how much progress we’re making. Transparency allows for evaluation by third parties, ensuring accountability and enabling us to promptly adjust our strategy as necessary.

We are driven by “Yatte Minahare” – the spirit of bold ambition – a value that guides Suntory’s mission to create harmony with people and nature. This is why our business has committed to objectives of our own – similar to those in discussion at COP26:

We’re working to cut GHG emissions in half by 2030 to achieve net zero emissions by 2050.

While the goal of net-zero by 2050 is important, it lacks a sense of urgency. Suntory recently committed to a more ambitious target for 2030 – to make more immediate, step-by-step progress. We’re aiming to halve GHG emissions in our direct operations and reduce by 30% across the entire value chain by 2030 to ultimately achieve net zero GHG emissions across Suntory’s entire value chain by 2050.

One element of this is an accelerated transition to renewable electricity. We’re targeting 100% renewable electricity across all of our directly owned manufacturing sites and R&D facilities for our beverage business in Japan, the Americas, and Europe by 2022. In our European business, almost all electricity in our directly owned facilities is sourced from renewable sources, with the company’s soft drinks business, Suntory Beverage and Food Europe, already meeting 100%.

All four of our soft drinks plants in France, including La Courneuve, Meyzieu, Donnery, and Chateauneuf de Gadagne, have already achieved carbon neutrality. We opened the Suntory Kita-Alps Shinano-no-Mori Water Plant in May 2021, establishing our first carbon neutral plant in Japan. In the United States, Beam Suntory’s Fred B. Noe Craft Distillery opened this year in Kentucky as our first distillery powered by renewable energy through a high-efficiency electric boiler and the purchase of renewable energy certificates (RECs).

We’re accelerating the decarbonization of our business through financial investments.

Securing global net zero also requires proactive investments in long-term solutions. We are planning to invest approximately 100 billion JPY (900 million USD) by 2030 in our shift to low-carbon alternatives. We estimate these actions will amount to a reduction of approximately 1 million tons of GHG emissions in our direct operations compared to a business-as-usual projection for 2030. This positions us well to meet our 2030 targets and ultimately achieve net zero by 2050. However, I also believe it’s impossible to reach net zero without innovation, which is why we’re also prioritizing sufficient and effective investments in new technology. As we continue to see more funding and R&D investments aimed at advancing sustainable solutions, I’m confident we’ll see a burgeoning of new technology in the next ten years.

We’re collaborating with partners to cohesively advance climate goals.

Working together allows for faster progress in the decade to come. We’re a part of the “Business Ambition for 1.5°C,” a campaign led by the Science Based Targets initiative (SBTi) in partnership with the UN Global Compact, We Mean Business coalition, and more than 900 other companies. Our targets covering GHG emissions from Suntory’s direct operations were also recently approved by SBTi, consistent with reductions required to keep global warming to 1.5°.

We must also work across the industry with partners throughout the supply chain to maximize impact. The reduction of Scope 3 emissions is challenging because we cannot address this without the engagement of our supply chain partners, which are often SMEs that lack the necessary resources. I strongly believe that a willingness to tackle these challenges together is crucial. No company can be left behind in realizing significant progress.

We’re striving to protect the environment as a company that deeply respects nature.

Climate and nature are inextricably linked. Reducing emissions to limit global warming protects ecosystems – and likewise, conserving nature and biodiversity builds resilience against the impacts of the changing climate. Just as livelihoods depend on the protection of ecosystems, Suntory’s business and products also rely on the blessings of nature. In addition to our carbon neutrality targets, Suntory’s Environmental Vision also prioritizes water sustainability and the preservation of biodiversity.

The craftsmanship of our products – whether beer, soft drinks, or premium spirits – depends on quality water. For example, the high-quality groundwater and rich natural environment around our Yamazaki Distillery in Japan is important for the character and quality of our whisky. One of the main purposes of our Natural Water Sanctuary initiative is to improve the function of forests that nurture groundwater resources and are rich with biodiversity.

Safeguarding this resource is also moral imperative for our business – water scarcity has to be taken more seriously by businesses as a consequence of climate change. We know that preserving water as a precious shared resource protects the natural environment, as well as the communities in which we live and work.  

Now is precisely the time for Suntory to go back to our basics as a company, which we have been pursuing since our founding. As COP26 discussions conclude later this week, our commitment remains the same: To take bold steps against climate change and toward a society where social and economic growth coexist with the sustainability of our planet. A world in harmony with people and nature.