Risk Management
The Meiji Group recognizes that risk management is not just for responding when emergencies or disasters occur and severely impact business activities. It is also important to take preventive measures to control and mitigate/avert risks.
In addition, as a company responsible for "food and health" that is directly linked to people’s lives, we are maintaining and improving our business continuity plan (BCP) so that pharmaceuticals, powdered milk, liquid food, etc. can be delivered to those who need it even in an emergency.
Risk Management System
To promote new growth towards realizing the Meiji Group 2026 Vision, the Meiji Group has established a risk management structure for identifying and reducing Group management risks while also enabling appropriate risk-taking.
To strengthen overall Group functions related to the management of business risks, in April 2021 Meiji Holdings Co., Ltd. established a Risk Management Department to oversee all aspects of risk management. Independent of the Audit & Supervisory Board, the Risk Management Department is overseen by an executive officer. This structure aligns management risks with our Group vision. Operating risks impacting the entire Group and the management of those risks are evaluated and confirmed by the Meiji Holdings’ Executive Committee and then reported to the Board of Directors. The Board of Directors further evaluates and supervises these risks and the risk management procedure to ensure management that accurately reflects changes in our operating environment. The Group has also established an Audit Department directly supervised by the CEO that serves as an internal audit division. This Audit Department monitors internal control related to planned audits conducted to reduce risks associated with business operations and financial reporting.
The Meiji Group has also established risk management structures that address the unique characteristics of the Food business and the Pharmaceuticals business. Through these structures, we engage in regular information sharing, and work to identify and resolve problems. We have established a structure that allows risks common to each business and risks that impact the entire Group to be shared immediately. We work to ensure early detection and response to risks, and the executive officer in charge of risk management provides reports to the CEO as needed.

Meiji Group Business Management Risks
We appropriately identify risks and develop countermeasures considering the risk impact from a companywide business management perspective. In this way, we not only minimize risks, but we also achieve sustainable growth and gain new growth opportunities. We outlined the three visions—the Business Vision, Sustainability Vision and Management Vision—in the Meiji Group 2026 Vision. We have identified the Meiji Group Business Management Risks based on those three Visions.
Listed on the following tables are risks inherent in matters indicated in our securities report in relation to the status of operations and accounting. The management recognizes them as major risks that may significantly affect the financial position, operating performance, or cash flows of our consolidated results.
The future risks outlined in the tables are categorized based on our medium- and long-term management strategy. We have assessed their importance to the Group, taking into account the likelihood of occurrence and the level of impact on the Group.
$$: High Risk
$: Moderate Risk
The information represents risks recognized by the Meiji Group as of the date of submission of the securities report. These risks are not a comprehensive representation of all the risks related to our businesses.
Risks | Countermeasures | Change in risk recognition from previous year | Importance to the Group | |
---|---|---|---|---|
Sale and supply of products and services |
|
|
↑ | $ |
The majority of profits comes from specific products |
|
|
→ | $$ |
Supply chains |
|
|
↗︎ | $ |
Technological advances |
|
|
↗︎ | $ |
Laws and regulations |
|
|
→ | $ |
Overseas expansion and overseas Group companies |
|
|
→ | $$ |
Business plans, etc. |
|
|
→ | $ |
Risks | Countermeasures | Change in risk recognition from previous year | Importance to the Group | |
---|---|---|---|---|
Caring for the Earth |
|
|
↗︎ | $ |
Climate change |
|
|
↗︎ | $ |
Thriving Communities |
|
|
↗︎ | $ |
Risks | Countermeasures | Change in risk recognition from previous year | Importance to the Group | |
---|---|---|---|---|
Corporate Governance |
|
|
↗︎ | $ |
Damage to the Meiji brand |
|
|
↑ | $$ |
Human capital and culture |
|
|
→ | $$ |
Information asset leaks |
|
|
↗︎ | $ |
Disaster, emergency or other unforeseen circumstances |
|
|
→ | $ |
There was an incident that hypnotic substance was contaminated in Itraconazole tablets manufactured by Kobayashi Kako Co., Ltd. and sold by Meiji Seika Pharma Co., Ltd. Meiji Seika Pharma stopped shipments of such products and instituted a voluntary recall. The Meiji Group works to confirm and enhance the reliability assurance structure applied to contract manufacturers and development partners.
The Meiji Group will fulfill the product supply responsibilities as a manufacturer of essential foods and pharmaceuticals. To undertake these responsibilities, we are working to improve workplace hygiene and establish safe and secure work environments at all manufacturing facilities in Japan and overseas. Due to the COVID-19 pandemic, we are seeing dramatic changes in our business environment: increase in prevention awareness and health consciousness, the significant expansion of e-commerce, workstyle changes, and decrease in numbers of outpatient visits to medical institutions. We will continue to perform our responsibilities to ensure a stable supply as Food and Health professionals. Also, we will try hard to develop and launch vaccine against COVID-19, and propose products that match people's needs living with COVID-19.
Business Continuity Plans
We are in the process of further strengthening our business continuity plans and developing our systems. In the event of a major earthquake, pandemic or other large-scale disaster, our obligation as a corporate group involved in Food and Health is to restore operations as quickly as possible so that we can fulfill our mission to supply necessary pharmaceuticals and food products. We carry out ongoing disaster awareness measures, and conduct regular drills for our employee safety confirmation systems. We are also implementing improvements throughout the value chain. These improvements include establishing robust operational and infrastructural systems, earthquake-proofing facilities, increasing the number of production sites, decentralizing supply sources, and establishing IT system backups.
Basic Policies Concerning Our Business Continuity Plan (BCP)
Meiji Group’s mission is to continue supplying the products and services our customers need, even in the event of a large-scale disaster. In order to ensure this is possible, we have implemented our Business Continuity Plan in line with the following policies:
- Protect the lives of people involved in Meiji Group’s business operations, as well as their families
- Fulfil Meiji Group’s social responsibilities
- Minimize damage to business caused by stoppage of operations, or similar causes
Information Security
We have established a variety of information security policies and rules which aim to protect our intellectual property and strengthen the management of personal, confidential, and other sensitive information. We train employees thoroughly in information security, and we strive to remain abreast of advances in IT technology.
We are committed to providing stakeholders with all necessary information. Help desks and websites are available for customers at each of our businesses, and information is disclosed to shareholders and investors through investor relation activities and specialized websites.
Reducing Risk Associated with Social Networking Services
The Meiji Group has established various rules to reduce risk associated with social networking services. Moreover, we draw employee attention to such risks via an in-house portal site.
Privacy Protection
We appreciate the importance of customer privacy. We comply with relevant laws and standards for the protection of personal information, and we have established a Group Personal Information Protection Policy.
Intellectual Property
Intellectual property has grown increasingly important in recent years due to growing awareness of intellectual property issues in society and a variety of new government measures. We acquire intellectual property rights for the new products and technologies we research and develop. These rights make it possible for us to continue supplying customers with high added-value products.