Working to Realize Our Vision for 2030

In 2020, the Nichirei Group identified five material matters (materiality) and set a vision for each of them in order to achieve the long-term management goals for 2030. We are promoting sustainability management by executing measures that address the material matters while balancing social and economic value.

We will leverage our strengths as we develop business in fields that support good eating habits and health and work on the following five material matters.

Material Matters (Materiality)			Vision for 2030	Group Measures	Group KPIs for FY2031	Applicable SDGs
1	Creating new value in food and health*1	Create new markets and customer value by taking on challenges outside existing areas in both food and health	Discover the potential of materials and cooling power to contribute to the future of the Earth and people’s mental and physical health through food	Allocate resources to R&D to investigate health, the global environment and diversifying customer value, as well as to marketing Develop products and services and convey information to address people’s mental and physical health and the global environment Establish mechanisms to create and cultivate value in new fields and conduct innovation activities	Sales of products and services that create added value for people’s mental and physical health and for the global environment: ¥140.0 billion People provided with information for good eating habits and health (total number of people per year): maintain over 200 million
2	Strengthening food processing and production technology capabilities; enhancing logistics services	Further refine core competencies in food processing, production and logistics to resolve social issues and improve profitability through competitive advantages in global markets	Ability to generate cash improved by concentrating management resources on core businesses	Promote capacity expansion, work process innovation, reduction of environmental impact, and development of business foundations through proactive capital expenditures in the processed foods and temperature-controlled logistics businesses	EBITDA margin: 12% EBITDA CAGR: 7% or higher
			Overseas business as a new pillar of earnings	Accelerate overseas expansion by securing and training globally capable human resources, cultivating partner companies, conducting M&A and other means	Overseas sales ratio: 30%
3	Realizing sustainable food procurement and a circular economy	Resolving various social issues related to the supply chain, which is the foundation of our business, and contribute to sustainable food procurement and the realization of a circular economy	All raw materials and ingredients are procured from suppliers and partner companies that comply with the Nichirei Group Supplier Code of Conduct and Supplier Guidelines	Establish a supply chain with consideration for human rights and the environment and conduct due diligence	Rate of procurement from suppliers and OEMs that comply with the Nichirei Group Supplier Code of Conduct and Supplier Guidelines: Procurement Rate 100% Rate of implementation of ESG due diligence for main raw materials and main suppliers: 100%
			Promoting a circular economy by creating new business models	Work to conduct sustainable resource procurement and help to realize a circular economy	Rate of attendance for the SDGs education program aimed at realizing a circular economy: 100% (all employees) Rate of waste recycling at all sites: 99%
					Procurement ratio of sustainable marine products complying with the Nichirei Group Sustainable Marine Product Procurement Guidelines in marine products business: 100%*2 Ratio of marine products in the above from fisheries with MSC, ASC or other global certification: 50%*2
					Procurement ratio of sustainable Palm oil (RSPO certified oil) : 100%*2
			Understanding risks to natural capital and improving resilience related to biodiversity and water resources	Conserve biodiversity and water resources through business activities that consider ecosystems	Reduce water consumption at high-risk locations and implement water conservation activities*3
					Engage in biodiversity restoration activities, including the preservation of plant and animal species at Group sites*3
4	Climate change initiatives	As a food and logistics company that is greatly affected by climate change, we will work with stakeholders to counter global warming and reduce energy consumption throughout the supply chain	Efforts underway to reduce CO₂ emissions both inside and outside the Group toward the goal of becoming carbon neutral by 2050	Reduce CO₂ emissions per unit of production and utilize renewable energy at food factories and logistics centers, and disclose information based on the TCFD recommendations	Reduction in CO₂ emissions: -42% (Compared with FY2023; Scope 1 and 2 in Japan and Overseas)*4 Reduction in CO₂ emissions: -25% (Compared with FY2023; Scope 3 in Japan and Overseas)*4 Reduction in CO₂ emissions: -56% (Compared with FY2016; Scope 1 and 2 in Japan)*5
			Elimination of CFCs progressing at production and logistics facilities as a global warming countermeasure	Replace all refrigerants used in freezing and refrigerating equipment in Japan with natural refrigerants Switch to natural refrigerants overseas as necessary, based on on-site confirmation	Rate of conversion to natural refrigerants Production equipment (Japan): 100% Rate of conversion to natural refrigerants Logistics (Global): 75%
5	Securing and developing a diverse array of human resources	Secure and develop diverse human resources and foster an inclusive corporate culture to achieve sustainable growth	Diverse human resources with various characteristics and skills, maximizing their potential to improve their job satisfaction and support the sustainable growth of the Group	Conduct a Company-wide employee engagement survey*7 to monitor the effectiveness of measures Establish a personnel system that enables Group employees to choose work styles according to their career outlook and contributes to productivity improvement Establish and provide support for application of rules	Employee engagement score 80pt*6 Ratio of women directors and women Audit & Supervisory Board members (Holding company): 30% or higher Ratio of women employees in management positions (Holding company): 30%
				Promote communication activities and impartially provide learning opportunities in order to create a work environment and corporate culture in which employees are healthy, lively and satisfied with their jobs	Investment in human resources \2.0 billion*6

• *1The vision for 2030, Group measures and Group targets and KPIs for FY2031 for material matter 1, “Creating new value in food and health,” were revised by the Board of Directors of Nichirei Corporation on July 18, 2023.
• *2For material matter 3, “Realizing sustainable food procurement and a circular economy,” in April 2023 the Nichirei Group established procurement guidelines for marine products and palm oil, which are important food resources underpinning its business activities, and added related Group targets and KPIs.
• *3For material matter 3, "Sustainable Food Procurement and the Realization of a Recycling-Oriented Society," was partially revised and added the ideal state regarding water resources and biodiversity in 2030, Group targets and KPIs for FY2031 at the Nichirei Board of Directors on April 16, 2024.
• *4For material matter 4, "Climate Change Initiatives," were reviewed with the FY2025 and FY2031 targets for CO₂ emissions reduction at the Nichirei Board of Directors on November 21, 2023. The FY2025 target was revised upward by 3 percentage points from 30% of the FY2016 level. In addition, the scope of CO₂ emission reductions was expanded and a new Group target for FY2031 was added.
• *5This is the reduction rate compared with FY2016, where the FY2031 target for Scope 1 and 2 in Japan is set at 42% reduction compared with FY2023.
• *6For material matter 5, "Securing and developing a diverse array of human resources," was added Group Targets and KPIs related to employee engagement score and revised the FY2025 and FY2031 targets for investment in human resources at the Nichirei Board of Directors on May 21, 2024.
• *7Engagement survey: A survey that shows degree of understanding of and resonance with the Management Principles and independent involvement in the organization (job satisfaction).

Nichirei believes that enhancing corporate value requires initiatives that improve profitability (ROIC, ROE), reduce capital costs (WACC), and promote growth expectations (PER). We view the execution of measures to address our material matters as contributing to the improvement of these three types of economic value, thereby enhancing corporate value. By continuing to promote non-financial measures that address our material matters, we will create both economic and social value, which will ultimately enhance corporate value.

Material Matters (Materiality)

Non-financial Measures

Expected Non-financial Value

Strengthening R&D and marketing functions	Details	•Creation of new value •Enhancement of brand value
Developing and promoting products and services addressing health and the global environment	Details
Promoting innovation	Details
Enhancing processing and production technology	Details
Enhancing temperature-controlled logistics services	Details

Conducting Supplier ESG Survey and due diligence with suppliers	Details	•Sustainable procurement of raw materials and water resources •Reduction of human rights risks •Enhancement of brand value
Promoting an increase in the ratio of marine products with MSC and ASC certification	Details
Sustainable palm oil procurement	Details
Conservation of water resources and biodiversity	Details

Reduction of CO₂ emissions	Details	•Reduction in environmental impact •Enhancement of brand value
Transition to natural refrigerants	Details

Initiatives to promote women’s participation	Details	•Creation of new value •Improvement of performance •Enhancement of brand value •Securing human resources •Strengthening the management base
Upgrading the occupational health system and enhancement of health literacy education	Details
Securing and developing globally capable human resources	Details
Sustainability and DX education, and development of next-generation management personnel	DX Human resources
Improving employee engagement	Details

Financial Value Drivers

Enhancement of corporate value