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Maintain a Sustainable Supply Chain

Supply Chain Management

Basic Philosophy

The Nichirei Group’s Nichirei Pledge defines the philosophy behind the CSR initiatives that the Group believes it should pursue. However, it cannot make the essence of its philosophy a reality with the Group’s efforts alone.
The Group believes that it is essential for a company to forge an appropriate relationship with stakeholders to make appropriate contributions to society through the life cycle of its business activities. In particular, because Group businesses harvest raw materials from natural ecosystems, the Group is aware that it may have an impact on the communities in its production site. For this reason, from a long-term perspective, the Group will forge appropriate relationships with its suppliers and partner companies and is aiming to contribute to the vitality and development of communities through its businesses.
In order to build a sustainable supply chain, the Group has established the Nichirei Group Sustainable Supply Chain Policy. The Group procures products and services in accordance with the following Policy and asks suppliers to assent to and comply with this policy.

Nichirei Group Sustainable Supply Chain Policy
The Nichirei Group is committed in working to maintain a sustainable supply chain. The Group procures products and services in accordance with the following policy and asks suppliers to assent to and comply with this policy.
Legal compliance: We comply with the laws and social norms of each country and region where we operate.
Fair business practices: We employ fair, transparent, and impartial business practices.
Human rights: We respect human rights and provide safe, healthy work environments.
Environment: We strive to reduce environmental impact and consider the health of the global environment.
Product quality and safety: We work hard to deliver safe, high-quality products and services.
Information management: We manage information properly and disclose information related to our business activities in a timely, appropriate manner.
Local communities: We seek to build close cooperative relationships with local communities, as a good corporate citizen.
Nicihrei Corporation, Strategic Planning, Nichirei Corporation, Quality Assurance Division, Nichirei Corporation, Technology Management, Nichirei Corporation, Corporate Internal Audit, Nichirei Corporation, Corporate Supervise, Nichirei Corporation, Legal Affairs, Nichirei Corporation, Human Resources Strategy & General Affairs, Nichirei Corporation, Finance & Investor Relations, Nichirei Corporation, Accounting & Tax, Nichirei Corporation, Group Communication, Nichirei Foods Inc., Nichirei Fresh Inc., Nichirei Logistics Group Inc., Nichirei Biosciences Inc., Hitachi Foods & Logistics Systems,Inc., NIchirei Bisiness Partners .inc

Management System

The Group is aware that it may have various impacts on society and the environment, including in its supply chain, through its domestic and international business activities, so it wishes to forge an appropriate relationship with stakeholders from a social and environmental perspective as well. In April 2017, the Group declared “maintaining a sustainable supply chain” as one of the important items in the Nichirei Pledge of its Basic CSR Policy, and as the foundation for progress on this front, it established the Nichirei Group Sustainable Supply Chain Policy. The Nichirei Group will cooperate with its suppliers and promote initiatives based on this Policy.
At its operating company Nichirei Foods, in terms of business activities that take CSR into account, suppliers and partner companies perform a self-check of the essential items concerning social responsibility related to procurement, and dialogue about the contents of the check sheet occurs during factory quality audits. In this process, the Nichirei Group Sustainable Supply Chain Basic Policy is shared with suppliers in Japan and overseas to obtain understanding and cooperation.

Regular Audits
Quality assurance audit FY2018 FY2019 FY2020
Japan Overseas Japan Overseas Japan Overseas
Number of annual Group audit
(Japan/Overseas)
156 15 66 38 54 20
Annual Group implementation rate
(compared to plan)
100% 88% 97% 100% 89% 80%

Regular audits are conducted by each Group company based on an annual plan. The plans are determined by rationally and objectively evaluating the magnitude of possible risks, based on risk management, whether or not certification of international standards has been obtained, the quantity of products handled annually, and product characteristics.
PDCA is also used in regular audits. Audit results are used as a reference when determining audit policies and target sites when developing audit plans for the upcoming year.

CSR Management Discussion Meetings

The Group has been holding “CSR Management discussion meetings” since FY2017 primarily to offer an opportunity for discussion on business activities that contribute to social responsibility, what group communication should be like, and building trust with society. This discussion consists mainly of the members of the holding company’s CSR Management promotion project and the Strategic Planning Divisions and Management Divisions of the Group’s four core companies. These meetings were held 12 times in FY2018, 5 times in FY2019, and there were discussions about initiatives related to maintaining a sustainable supply chain, as well as an examination of the Group companies’ environmental and social issues.

Inaugural Supply Chain Meeting to Promote CSR Procurement

Since 2019, in accordance with the OECD Guidelines for Multinational Enterprises and the United Nations Global Compact, the Nichirei Group has been promoting the understanding of, and working toward attaining, the Nichirei Group Sustainable Supply Chain Policy and ensuring that our supply chain business partners are in step with the Group’s CSR procurement activities. In FY2021 (ending in March 2021), we launched a Supply Chain Meeting to enable Group companies to participate in formulating Group CSR procurement guidelines, as well as to share with us and examine issues regarding the addressing of human rights due diligence. In addition to Nichirei Foods having joined the July 2019 Sedex* London conference, the Group is engaged in ethical and responsible business practices throughout our global supply chain.

  • *Supplier Ethical Data Exchange, a non-profit organization established in the United Kingdom in 2004 to provide a platform for managing and sharing corporate ethical information with the aim of realizing responsible business practices in supply chains.
Nicihrei Corporation, Strategic Planning, Nichirei Corporation, Quality Assurance Division, Nichirei Corporation, Technology Management, Nichirei Corporation, Corporate Internal Audit, Nichirei Corporation, Corporate Supervise, Nichirei Corporation, Legal Affairs, Nichirei Corporation, Human Resources Strategy & General Affairs, Nichirei Corporation, Finance & Investor Relations, Nichirei Corporation, Accounting & Tax, Nichirei Corporation, Group Communication, Nichirei Foods Inc., Nichirei Fresh Inc., Nichirei Logistics Group Inc., Nichirei Biosciences Inc., Hitachi Foods & Logistics Systems,Inc., NIchirei Bisiness Partners .inc

Initiatives

Participation in Human Rights Program

As an external activity related to human rights, the Nichirei Group is participating in the Stakeholder Engagement Program operated by the Japan CSR Consortium, for which the Caux Round Table operates a bureau. In the Program, we discussed with NPOs/NGOs and other companies to identify sector specific human rights issues.
We worked on identifying human rights issues specific to the food industry and logistics business, we had discussions that delved into human rights issues. The result shall be considered in our human rights activities and we will continue to engage in stakeholder engagement to identify industry-specific human rights issues.

The report of stakeholder engagement program can be downloaded from the web site of CRT Japan.

In addition, the Group participated in an international convention of human rights (hosted by CRT Japan) that was attended by NGOs and human rights exparts.

Membership in the RSPO

Palm oil, obtainable from the fruit of the oil palm, is used as a raw ingredient in edible oils, soap, detergent, and various other products. Last year, progress was made with a large-scale development of oil palm plantations, and the deforestation of the tropical rainforest, CO2 emissions from peatlands, and other environmental issues, along with forced labor and child labor on the plantations, have become global issues.
In August 2018, the Nichirei Group became a member of the RSPO (Roundtable on Sustainable Palm Oil), a non-profit organization that promotes the sustainable production and usage of palm oil. Nichirei Foods' food factories (consolidated subsidiaries in Japan and overseas) aggregate the total amount (100%) of palm oil used for frying oil as a primary raw material and purchase the appropriate amount of RSPO certified oil credits (Book & Claim model) by the end of FY2021. We will support RSPO's efforts to promote sustainable procurement in the supply chain.

  • 4-1055-18-100-00
Questionnaire Survey and Progress with Major Suppliers

https://www.nichirei.co.jp/english/csr/supplychain

To work on building sustainable supply chains, the Nichirei Group undertakes the procurement of products and services in accordance with its policy and encourages its suppliers to understand the policy and put it into practice.

  FY2018 FY2019 FY2020
Nichirei Foods Shared Nichirei Group Sustainable Supply Chain Policy with important suppliers in Japan and overseas, conducted surveys in a questionnaire format Collected all questionnaires Analyzed questionnaire content ・Join Sedex
・Started creating Supplier CSR Guidelines
Nichirei Fresh Visited some suppliers and exchanged opinions Continuation of analysis of questionnaire contents
Nicihrei Corporation, Strategic Planning, Nichirei Corporation, Quality Assurance Division, Nichirei Corporation, Technology Management, Nichirei Corporation, Corporate Internal Audit, Nichirei Corporation, Corporate Supervise, Nichirei Corporation, Legal Affairs, Nichirei Corporation, Human Resources Strategy & General Affairs, Nichirei Corporation, Finance & Investor Relations, Nichirei Corporation, Accounting & Tax, Nichirei Corporation, Group Communication, Nichirei Foods Inc., Nichirei Fresh Inc., Nichirei Logistics Group Inc., Nichirei Biosciences Inc., Hitachi Foods & Logistics Systems,Inc., NIchirei Bisiness Partners .inc

ASC/MSC-certified Products

Aquaculture Stewardship Council, Marine Stewardship Council Certification

Since 2006, Nichirei Fresh has been engaged in the Forest of Life Project*1 nature conservation activities involving sustainable black tiger prawn farming and mangrove tree planting in Kalimantan, Indonesia.
These activities were extended to whiteleg shrimp ponds in Sumatra, Indonesia, and obtained Aquaculture Stewardship Council (ASC) certification*2 in 2018. From 2020, mangrove planting will begin in earnest, with plans to plant about 280,000 trees.
In addition, we are gradually increasing the handling of marine products certified*3 by the Marine Stewardship Council (MSC) and, June 2019, we have been handling 17 fish species of marine products. In the years ahead, we plan to increase the variety of sustainable marine products we handle.

  • *1Forest of Life Project: https://www.nichireifresh.co.jp/inochinomori/
  • *2ASC certification requires that marine products used have been cultivated in a sustainable manner.
  • *3MSC certification requires that wild seafood used has been caught using methods that do not deplete the natural supply.
Nichirei Fresh products that have obtained ASC/MSC certification (as of June 2019)
authentication authentication acquisition number
ASC
Certification Registry Number ASC-C-01632
Black tiger shrimp、Whiteleg shrimp、Pacific oyster
MSC
Certification Registry Number MSC-C-52165
Salmon varieties (pink salmon, king salmon, coho salmon, chum salmon, sockeye salmon)、
Flatfish varieties (Kamchatka flounder, yellowfin sole, dusky sole, white flounder)、
Walleye pollack、Pacific cod、Scallops、
Herring、Capelins、Snow crabs、Arctic surf clams、Red king crab
Nicihrei Corporation, Strategic Planning, Nichirei Corporation, Quality Assurance Division, Nichirei Corporation, Technology Management, Nichirei Corporation, Corporate Internal Audit, Nichirei Corporation, Corporate Supervise, Nichirei Corporation, Legal Affairs, Nichirei Corporation, Human Resources Strategy & General Affairs, Nichirei Corporation, Finance & Investor Relations, Nichirei Corporation, Accounting & Tax, Nichirei Corporation, Group Communication, Nichirei Foods Inc., Nichirei Fresh Inc., Nichirei Logistics Group Inc., Nichirei Biosciences Inc., Hitachi Foods & Logistics Systems,Inc., NIchirei Bisiness Partners .inc

Supplier Rasing

Nichirei do Brasil Agricola Ltda. provides contractors with acerola seedlings and cultivation technology, and the fruits that are the result are all purchased by Nichirei do Brasil Agricola, and contributes to the local society including the guidance for the farmers, employment and income.

Nicihrei Corporation, Strategic Planning, Nichirei Corporation, Quality Assurance Division, Nichirei Corporation, Technology Management, Nichirei Corporation, Corporate Internal Audit, Nichirei Corporation, Corporate Supervise, Nichirei Corporation, Legal Affairs, Nichirei Corporation, Human Resources Strategy & General Affairs, Nichirei Corporation, Finance & Investor Relations, Nichirei Corporation, Accounting & Tax, Nichirei Corporation, Group Communication, Nichirei Foods Inc., Nichirei Fresh Inc., Nichirei Logistics Group Inc., Nichirei Biosciences Inc., Hitachi Foods & Logistics Systems,Inc., NIchirei Bisiness Partners .inc

Sustainable Ingredient Procurement

Junwakei Chicken, Recycled Agriculture, Domestic Chicken Breeds Model for Self-Sufficiency

The Junwakei breed of chicken is raised at the Nichirei Fresh Farm Hirono Facility, an affiliate of Nichirei Fresh. The chickens are a Japanese breed, selectively bred from foundation stock crossed with the Japanese Koyuki and Benizakura breeds of chickens at the National Livestock Breeding Center Hyogo Farm.
The self-sufficiency rate of chickens used for meat in Japan is relatively high at about 70%. That said, the parents (broiler breeders) and grandparents (ancestors) account for only about 1% of current broods, as a result of which we must rely on imports from overseas. This means that, in the event of an epidemic overseas such as of the bird flu, domestic poultry farming would be adversely affected were imports stopped.
For this reason, Nichirei Fresh is making every effort to raise chickens that are not dependent on overseas breeds to improve Japan's food self-sufficiency rate.
In addition, with the cooperation of the JA Shin-Iwate Agricultural Cooperative, Nichirei Fresh has signed contracts with rice farmers in the towns of Karumai, Hirono and their suburbs in Iwate Prefecture to produce feed rice using abandoned and fallow rice fields. Locally harvested feed rice is included in the mixed feed given to Junwakei chickens.
Chicken manure is heat-treated at a high-speed chicken manure processing plant at the Hirono facility, and the energy thus generated is used to heat the chicken house. The heat-treated chicken manure is both sold to local farmers as organic fertilizer, and used in the feed-producing rice fields included in Nichirei Fresh contracts.
The Junwakei chicken regional agriculture and livestock recycling model won the Excellence Award in the product category at the 2010 Food Action Nippon Awards sponsored by the Ministry of Agriculture, Forestry and Fisheries.

Nicihrei Corporation, Strategic Planning, Nichirei Corporation, Quality Assurance Division, Nichirei Corporation, Technology Management, Nichirei Corporation, Corporate Internal Audit, Nichirei Corporation, Corporate Supervise, Nichirei Corporation, Legal Affairs, Nichirei Corporation, Human Resources Strategy & General Affairs, Nichirei Corporation, Finance & Investor Relations, Nichirei Corporation, Accounting & Tax, Nichirei Corporation, Group Communication, Nichirei Foods Inc., Nichirei Fresh Inc., Nichirei Logistics Group Inc., Nichirei Biosciences Inc., Hitachi Foods & Logistics Systems,Inc., NIchirei Bisiness Partners .inc
Maintain a Sustainable Supply Chain
Supply Chain Management

Basic Philosophy

The Nichirei Group’s Nichirei Pledge defines the philosophy behind the CSR ...

Maintain a Sustainable Supply Chain
Supply Chain Management

Management System

The Group is aware that it may have various impacts on society and the envi...

Maintain a Sustainable Supply Chain
Supply Chain Management

Initiatives

Participation in Human Rights Program As an external activity related to...

Maintain a Sustainable Supply Chain
Supply Chain Management

ASC/MSC-certified Products

Aquaculture Stewardship Council, Marine Stewardship Council Certification ...

Maintain a Sustainable Supply Chain
Supply Chain Management

Supplier Rasing

Nichirei do Brasil Agricola Ltda. provides contractors with acerola seedlin...

Maintain a Sustainable Supply Chain
Supply Chain Management

Sustainable Ingredient Procurement

Junwakei Chicken, Recycled Agriculture, Domestic Chicken Breeds Model for S...

Maintain a Sustainable Supply Chain
Human Rights Initiatives

Basic Philosophy

The Nichirei Group believes that respecting the human rights not only of th...

Maintain a Sustainable Supply Chain
Human Rights Initiatives

Human Rights Policy

https://www.nichirei.co.jp/sites/default/files/inline-images/english/ir/int...

Maintain a Sustainable Supply Chain
Human Rights Initiatives

Management System

In the Group’s endeavors to respect human rights in its business activities...

Maintain a Sustainable Supply Chain
Human Rights Initiatives

External Communications

During the Caux Round Table stakeholder engagement program held between Jun...