SBTN Pilot: Suntory
Company:
Suntory
Suntory is one of 17 companies that submitted science-based targets for nature – for both freshwater and land – as part of a pilot which took place from May 2023 to June 2024. This case study is part of a series about the findings from those validation pilot companies.
>>View the full pilot summary report
“SBTN is a compass providing scientific insights to accelerate action to sustain nature and water, which are the foundation of Suntory Group’s value creation.”
Context and motivation
Suntory Group is a global leader in consumer-packaged goods, producing and distributing a diverse portfolio of beverages, including premium spirits, beer and wine, and wellness products worldwide. Its production bases are mainly in Asia-Pacific, North America, and Europe, while its raw material inputs such as agricultural products are procured worldwide.
The company believes that a holistic, science-based approach to assessing impacts and setting targets is an essential prerequisite to action to sustain nature. For Suntory, healthy ecosystems and clear water are the foundation of their value creation.
Actions taken
Suntory’s materiality assessment (Step 1) covered 100% of its direct operations and 100% of its high-impact commodities upstream, equivalent to 68% of total procured raw ingredients.
Water use pressure in direct operations was mainly assessed using primary data. However, secondary data was used for water pollution, as primary data could not be monitored for office buildings and some plants that discharge directly into the sewage system. Water pollution pressure was instead estimated by applying the ratio of production volumes or the number of employees at sites for which primary data was available.
For upstream operations, secondary data was used to estimate each pressure by multiplying the basic pressure unit from the IDEA database by the amount of each commodity procured. Suntory worked with an external consultant, Yachiyo Engineering Co., Ltd., to progress on this journey. As a result of their prioritization analysis (Step 2), seven sites were selected as priority sites for direct operations, three sites for upstream operations, two sites for upstream operations, and ten sites for landscape engagement.
Findings
The Kumamoto region in Japan was identified as the target area for water quantity and quality as it is one of Suntory’s major production sites, with high water use and growing demand for water from competing users in the basin.
Prior to the SBTN pilot, Suntory had already worked with local universities and government agencies in the Kumamoto region to build a local simulation model to visualize groundwater flow. As a result of further stakeholder engagement with these organizations, the company identified targets for water quantity and quality in Kumamoto.
Additionally, the company identified water quantity and water quality targets for two upstream sites using a global model: for green tea in Japan and coffee in Brazil. For land-based commodities, the company identified a target of phasing out the procurement of raw milk and coffee produced in areas where natural ecosystems have been altered after 2020. Land footprint reduction targets were set for several commodities, including tea and coffee, following the methodology of reducing the area occupied by farmland per kg of the target commodity by 1% per year from the base year to the target year.
Challenges
Suntory believes that upstream traceability could be challenging for many companies because of the prevalence of outsourced procurement.
When setting targets in Step 3, Suntory were unable to find local hydrological models for some basins, and instead used global models. However, they felt there is a risk that global models could result in setting unrealistic targets where global models do not reflect the actual situation of the catchment. Building a local model is preferable, but this involves considerable cost and effort, so tools that complement the actual situation are needed. Suntory welcomes SBTN’s forthcoming basin threshold tool as a means to help companies identify local water models.
Further, Suntory considers it challenging to find a solution that allows them to reduce fertilizer use and its land footprint simultaneously, as fertilizer reductions can result in lower yields.
Benefits of process and next steps
Suntory felt that SBTN’s materiality assessment and prioritization (Steps 1 and 2) were valuable and provided a holistic assessment of their impacts and the state of nature. This has helped them identify priority areas for action. They also considered there to be good linkages between SBTN and TNFD. As part of the SBTN pilot, Suntory has also identified areas for improvement in data gathering. To align with SBTN, ISSB, and other requirements, they are committed to enhancing their data collection systems and recognize the importance of developing a robust data collection system upstream.
Advice for other companies
- Collecting local data is vital, because the significance of impacts on nature vary by location. Begin by identifying which data is accessible and which data may be unavailable or harder to obtain.
- Be patient when it comes to data organization, as there is a lot of value chain data required by SBTN. Don’t be afraid to use external experts to assist with this.
>> View the full pilot summary report
>> Learn more about setting science-based targets for nature
