To address climate change, we are promoting renewable energy use by installing solar panels in our plants, introducing fuel-efficient vehicles, and developing sales equipment with lower power consumption and GHG emissions. We are also We have experienced longer delivery times for purchased products due to supply shortages of key components, particularly semiconductors used in vending machines. Additionally, global supply risks emerged in 2022 due to dependence on China and the lockdowns in Shanghai in response to the spread of COVID-19. To manage these risks, enhancing the process of sustainable procurement of raw materials and commodities, in line with the greenhouse gas reduction targets of the Coca-Cola System in Japan. Through our procurement activities, we are contributing both directly and indirectly to achieving these targets.We believe in building strong partnerships with our suppliers by fostering fair and equal trade. To achieve this, we expect our suppliers to comply with our Supplier Guiding Principles, which reflect our values on human rights, the environment, and labor.we identify potential risks and update countermeasures as necessary, including those related to natural disasters and cyberterrorism. In this way, we are working closely with our suppliers to build a stable supply system.We prioritize legal compliance in our procurement activities by ensuring adherence to regulations such as the Act against Delay in Payment of Subcontract Proceeds, Etc. to Subcontractors. We conduct all procurement activities with compliance, governance, and fair and transparent trade in mind. To ensure that all relevant divisions are informed and equipped to maintain these standards, we provide in-house training sessions, not only for Procurement Division but all relevant divisions.33Procurement StrategyCoordinating with suppliers to realize sustainabilityWe are working towards a World Without Waste by developing a new collection model for empty PET bottles and cans. We are reducing container weight and packaging volume while increasing the use of sustainable materials. These efforts are aligned with our CSV goals, which include creating a zero-waste society.Carrying out procurement activities with compliance and governance in mindOur business has been significantly impacted by sudden and unavoidable changes in global macro environment, such as the rising raw material, supplies, and energy prices and the adverse fluctuations of foreign exchange rates. To stabilize our business in this uncertain environment, we implement risk hedging measures for commodities and foreign exchange in cooperation with the Finance Division, when appropriate.Creating value and optimizingperformance as a world-classprocurement organizationYoichi NishiguchiExecutive Officer and CPO (Chief Procurement Officer)Coca-Cola Bottlers Japan Inc.
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