Nichirei GroupCSR Report 2018

Contents & Editorial Policy

Contents & Editorial Policy
CONTENTS■ President’s Message

・・・ 3

Sustainable Supply Chain Policy
Supply Chain Management

・・・ 43■ Promoting CSR Management in the Nichirei Group・・・ 4

Human Rights Initiatives

・・・ 45■ Environmental Initiatives

Foster Cooperative Relations with Communities

Reduce Environmental Impact

Contributions to Society

・・・ 46

Environmental Management

・・・ 8

Initiatives for Sustainable Raw Ingredients・・・ 16

Continually Enhance Workplaces

Initiatives for Energy and Climate Change

・・・ 18Fundamental Policy on Human Resources・・・ 50Initiatives for Water Resource Conservation

・・・ 25

Occupational Safety and Health・・・ 51

Initiatives for Biodiversity Conservation

・・・ 26

Labor Practices

・・・ 53Emissions into the Atmosphere・・・ 28Human Rights (Labor-management Relations) ・・・ 54

Management of Wastewater, Waste Matter,

Human Asset Cultivation and Diversity

and Chemical Substances

・・・ 29Initiatives in Products and Services

・・・ 31

Processing Environmental Complaints

・・・ 32・・・ 55■ GovernanceSupport Good Corporate Governance■ For the Benefit of Society

Corporate Governance・・・ 57

Risk Management

・・・ 59Create New Value for Customers
Consumer-related Issues

・・・ 33

Ensure Strict Compliance
Compliance・・・ 60

Provide Safe Products and Services
Product Responsibility

・・・ 34■ External Evaluations

・・・ 62■ Third-party Opinion

・・・ 63

Editorial Policy
The Nichirei Group produces a CSR report to better communicate and build relationships of trust with stakeholders by communicating its CSR
activities. This report presents a detailed summary of the Group’s activities in a PDF format.
In preparing this report, the GRI Sustainability Reporting Standards have been used.
■ Target Period
This report primarily covers activities conducted between April 1, 2017 and March 31, 2018.
■ Issue Date
January 2019 (previous report published in August 2017, next report scheduled for January 2020)■ External Assurance
The CSR Report 2018 has not, at present, been externally assured.
■ For Inquiries about the CSR Report 2018
CSR Promotion, Strategic Planning
Nichirei Corporation
Nichirei Higashi-Ginza Building 6-19-20 Tsukiji, Chuo-ku, Tokyo 104-8402, Japan
Tel: 81(3)-3248-2162
Fax: 81(3)-3248-2120
Nichirei Group CSR Report 2018

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Nichirei Group CSR Report 2018

Contents & Editorial Policy■ Applicable Worksites
Environmental Data: Applicable Worksites for Fiscal 2017 (FY18/3) Results Calculations
The following company food plants and distribution centers are included in the calculations. In the event of multiple worksites, the number
is indicated in parenthesis.
Nichirei Foods
Nichirei-Foods (9), Nichirei Ice (3), Churei, Kyurei, Nichirei Well Dinning
Nichirei Fresh
Fresh Maruichi (3), Nichirei Fresh Process (2), Nichirei Fresh Farm, Fresh Chicken Karumai, Fresh Meat Sakudaira
Nichirei Logistics Group
Logistics Network (34), NK Trans (4) Nichirei Logistics Hokkaido (7), Nichirei Logistics Tohoku (4), Nichirei Logistics Kanto (11), Nichirei
Logistics Tokai (10), Nichirei Logistics Kansai (13), Nichirei Logistics Chushikoku (12), Nichirei Logistics Kyushu (13), Kyokurei (4)Nichirei Biosciences
Development Center
Other
New Housing* Regarding the amount of energy used and volume of CO2 emitted, this includes activities at the head office, branches and offices otherthan those indicated above, and company-owned trucks.
* Excludes overseas worksites.
* If the scope of applicable worksites differs from the above, a statement to this effect has been included.

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Nichirei Group CSR Report 2018

President’s Message

Creating New, Unique Value That
Focuses People’s Lifestyles

Kunio Otani
Representative Director and President
Nichirei Corporation

In order for the Nichirei Group to find solutions to society’s problems through business, I believe it is important that we fulfill our mission in goodfaith, namely, to “Focus on Lifestyles, and Provide True Satisfaction.” Based on the key concepts of utilizing the bounties of nature and providing
strong social infrastructure, we will contribute to society by creating new value that only we can in our respective business areas of processed
foods, marine products, meat and poultry products, logistics and bioscience.
With an aim of realizing a sustainable society, it is important that we take a more long-term view with regard to management practices andin fiscal 2017 (FY18/3), two of our primary objectives were providing safe products and services and creating a sustainable supply chain. Providing
safe products and services is the most basic and important value provided by our Group, and achieving it requires a sustainable supply chain.
When expanding our business, it is important to keep in mind that these two primary objectives are not only great opportunities for us to create
new value, but are also potential risk factors. Meanwhile, in terms of corporate culture and organizational structure, to realize a company where
each and every employee finds job satisfaction, we will continue to promote work style reforms and to employ highly transparent management
practices.
Adopted by the United Nations, the Sustainable Development Goals (SDGs) establish common global goals to achieve by 2030. While there
are various social issues, the one that relates closely to our business is SDG Goal 12: Responsible consumption and production. By reducing foodwaste through effective utilization of frozen foods, marine, meat, and poultry products, and logistics services, I believe we can contribute to theachievement of these SDGs.

A Message to Our Stakeholders
Going forward, we will continue to provide value that leads to your satisfaction, while focusing on lifestyles. In addition, with a view to sustainablegrowth, we will also strive for solutions to social issues while deepening our dialogue with stakeholders.

Sustainable Development Goals (SDGs)
In 2015, over 150 heads of state participated in the Sustainable
Development Summit hosted by the United Nations, and the 2030
Agenda for Sustainable Development was adopted to create abrighter future for both humans and the world. This action planconsists of 17 goals and 169 targets, which together comprisesustainable development goals (SDGs). Achieving these goals
requires that governments, firms, and civil society work together.
Through its business activities and the “Nichirei Pledge,” Nichirei
Group is making efforts to achieve these SDGs.

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Nichirei Group CSR Report 2018

Promoting CSR Management in the Nichirei Group

Promoting CSR Management in the Nichirei
Group
Basic CSR Policy
For the purpose of clarifying the key issues to be addressed in the future, the Nichirei Group revised its basic CSR policy in April 2017 to create
the Nichirei Pledge. The Group conducts business in Japan and other countries of the world, primarily in the areas of food procurement, production,and distribution, based on the understanding that these business activities affect its stakeholders, the environment, and society in various ways.
With a mission of “Focus on Lifestyles, and Provide True Satisfaction,” the Group recognizes the broad stakeholder expectation that it will
work to make communities more sustainable through its daily business activities. To meet those expectations and to further cement its long-standing
relationships of trust with stakeholders, and also to realize further value creation and resolve social issues, business management will be promoted
throughout the Group based on the Nichirei Pledge.

The Nichirei Pledge Working to Make Our Communities More SustainableAs a group of companies that provide value in the fields of food and health, the Nichirei Group strives to help communities solve theissues they face while creating new value for customers through its business activities. The Group gives full consideration to the economic,
social, and environmental impact of its endeavors, and publicly discloses the details of its businesses to its stakeholders, in order to gain
their understanding and promote further dialogue.

Create new value forcustomers

We strive to create new products and services, while helping customers andcommunities solve various issues through our business activities.

Provide safe products
and services

We ensure that everything we offer our customers is characterized by highquality and safety.

Maintain a sustainablesupply chain

We work to ensure that our supply chain is sustainable.

Reduce environmental
impactWe strive to reduce the environmental impact of our operations, while giving
full consideration to their potential effects on the global environment.

Foster cooperative
relations with
communities

As a responsible corporate citizen, we foster close cooperation with local
communities in the interests of the public good.

Continually enhance
our workplaces

While promoting respect for the diversity of our employees, we continuously
improve the workplace environment to enable every employee to make the mostof his or her abilities and work with enthusiasm.

Support good
corporate governanceWe employ highly transparent, fair management practices, while ensuring that
resources are properly allocated and management decisions are made in a timely
manner.

Ensure strict
compliance

We maintain high ethical standards, while complying with the laws and social
norms of each country in which the Nichirei Group operates.

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Nichirei Group CSR Report 2018

Promoting CSR Management in the Nichirei GroupTop-priority Important Items“Provide safe products and services” and “Maintain a sustainable supply chain,” which were added to the Nichirei Pledge in fiscal 2017 (FY18/3),
have been positioned by the Group as its top-priority important items to be addressed. In promoting CSR management, the Group will prioritize
strengthening initiatives and enhancing information disclosure with respect to these two items.
To achieve the Sustainable Development Goals (SDGs) by 2030, the Group will work on operations through its business activities, linking theseimportant items to related SDGs.

Process for identifying important items (https://www.nichirei.co.jp/english/ir/integrated/pdf/P13-14.pdf)

Top-priority Important Items

Provide Safe Products and Services

Maintain a Sustainable Supply Chain“Provide safe products and services” is at the core of the“Maintain a sustainable supply chain” is the foundation thatGroup’s businesses, and it has made explicit some items that

supports the Group’s business activities. It is expected thatit has considered important for a long time.

the entire supply chain, which includes its business partners,

To gain the trust of its customers and ordinary people, thefulfills its responsibility to society and the environment. Basedentire Group strives to provide high-quality and safe productson the Nichirei Group Sustainable Supply Chain Policy, Nichirei

and services.

Group aims to cooperate with its business partners to develop
a completely sustainable supply chain.

■ Related SDG Goals■ Related SDG Goals

Sustainable Supply Chain Policy
In April 2017, “Maintain a sustainable supply chain” was specified in the Nichirei Pledge (the Group’s basic CSR policy) and positioned as a top-priority
important item. The Nichirei Group Sustainable Supply Chain Policy was established as a foundation for promoting supply chain management.
Working with its suppliers, the Nichirei Group will promote initiatives in accordance 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 inaccordance with the following policy and asks suppliers to assent to and comply with this policy.
LegalcomplianceFair businesspractices

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
Information
management
Local
communities

We comply with the laws and social norms of each country and region where we operate.

We work hard to deliver safe, high-quality products and services.
We manage information properly and disclose information related to our business activities in atimely, appropriate manner.
We seek to build close cooperative relationships with local communities, as a good corporate citizen.

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Nichirei Group CSR Report 2018

Promoting CSR Management in the Nichirei GroupCSR Management Structure
To promote CSR management across the Nichirei Group, the entirety of the Group’s holding company functions the Corporate Social Responsibility
Headquarters, with the company president serving as chairperson. The CSR headquarters shares information on deliberations by various committees
that have been set up for advising the Board of Directors, conducts reviews of CSR initiatives, and puts forward related improvements for thefollowing fiscal year. The CSR Promotion Group has been established in the Strategic Planning Department.

Representative Director, President, Nichirei Corporation
The entire holding company is CSR headquarters

CSR headquarters (the president is the chairperson of CSR headquarters)

The Group Human Resources Committee

Quality Assurance Division

The Diversity Promotion Conference

Technology Management

The Group Health Promotion Committee

Corporate Internal Audit

The Group Risk Management Committee

Corporate Supervise

The Group Environmental Protection Committee
The Group Quality Assurance Committee

Strategic Planning

The Group Internal Control Committee

Legal Affairs

The Group Director Review Committee

Human Resources Strategy & General Affairs

The Group Social Contribution Committee

Finance & Investor Relations

Fureai Fund Board

Accounting & Tax

Nominating Advisory Committee

Public Relations

Compensation Advisory Committee• Committees chaired by Kunio Otani, Representative Director and PresidentGroup Human Resources Committee / Group Risk Management Committee / Group Environmental Protection Committee / Group Quality AssuranceCommittee / Group Internal Control Committee / Group Social Contribution Committee• Committees chaired by an outside company auditor• Committees chaired by outside directors

Group Director Review Committee / Nominating Advisory Committee

Compensation Advisory Committee

CSR Management Discussion Meetings
Within the Nichirei Group, CSR Management discussion meetings are held comprised of members of each Group company, with the director
serving as CSR headquarters vice chairperson acting as the owner. During this meeting, members discuss the Group’s common basic policy, efforts
by each operating company to address social and environmental issues, maintain a sustainable supply chain, and so on. The conclusions reachedduring these discussions are reported to the Board of Directors and management conference, then put into action once approval is received frommanagement.
During FY18/3, meetings were held on 12 occasions to discuss the top-priority important items, confirm the progress of initiatives in line with
the Sustainable Supply Chain Policy, examine each Group company’s environmental and social issues and formulate action plans, and to discuss
the Integrated Report.
Meetings will continue to be held in FY19/3 with an aim of promoting CSR management.

Raising Awareness within the GroupIn addition to raising awareness among employees about CSR and sustainability through newsletters and e-learning programs published on theGroup’s intranet, the Group’s initiatives are also publicized in the Nichirei Group PR magazine entitled OriOri.

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Nichirei Group CSR Report 2018

Promoting CSR Management in the Nichirei Group

Nichirei Group Company Management Principles
Stakeholders
Customers

The Group continues to develop and supply products and services of true value to consumers, our ultimate customers. Our hope is that customers
and the Group may have a lasting relationship of mutual trust and prosper together.
Shareholders and Other Investors

The Group sets up profitable businesses to enhance capital efficiency and boost enterprise value. Shareholders and investors benefit fromappropriate returns.
Business Partners

We endeavor to build relationships of trust, and to encourage development with a view to prosperous coexistence. To this end, the Group maintains
an equitable stance toward its business partners, which it treats as equals.
Employees
The Group believes that employees are the true source of corporate development. Our desire is for all employees to find satisfaction in their jobs,

and for the workplace to be a place of self-fulfillment. At the same time, we respect each employee’s dignity, self-expression, and desire for greater
fulfillment in their private lives. Accordingly, Nichirei provides employees with opportunities to develop and utilize their skills; a compensation
system based on ability, effort, and results; as well as a safe, open, and energetic work environment. We are an equal opportunity employer, withno regard for an individual’s gender, age, academic background, race, or religion.
Society
The Group engages with local communities as a corporate citizen, and aims to contribute to the development of society through its businessactivities. As part of our role, we provide ongoing assistance for people with disabilities, as well as participate in, and support, cultural activities
and other community events.

Stakeholder Engagement
Nichirei believes that building relationships of trust through dialogue with stakeholders is important for putting CSR management into practice.
Through exchanging opinions with various stakeholders, it has sought to permeate understanding for the Group’s views and initiatives, and strives
to grasp the issues.
● Key Communication with Stakeholders

Stakeholder

Examples of Communication

PurposeCustomers• Communication through business activities• Responding to reports and inquiries submitted to the Customer
Support Center• Customer satisfaction (CS) surveys• To improve customer satisfaction and corporate
value, by quickly and appropriately responding tothe opinions of, and reports made by, customers.

Shareholders andOther Investors• General meetings of shareholders• Financial results briefings• Briefings for institutional investors and individual investors• Provision of information through websites, Group reports, theIntegrated Report, etc.

• To increase understanding for the company andensure its accountability by disclosing appropriate
information to shareholders and investors in atimely manner, and to enhance corporate value.

Business Partners• Communication with suppliers via procurement activities• Supplier questionnaires on the Nichirei Group Sustainable Supply Chain
Policy• Nichirei Foods NX Forum• Nichirei Fresh Kodawari Seminar• The Nichirei Logistics Group has formed a national network of affiliatedtransportation and delivery companies.

• To grasp the current situation in the supply chain,and to strive for appropriate procurement
activities.
• To increase understanding of the company’s
policies and future endeavors, and to strive formutual development by providing new
information and trends.

• Regular interviews with supervisor• Communication with the labor union• ES surveys• Internal reporting and consultation hotline (Nichirei Hotline)• Forum for women working in logistics, Nichirei Logistics Group• To implement the PDCA cycle with an aim ofenhancing employee motivation and realizing avibrant organization.
• To maintain good labor/management relations byreflecting employee views in the workplaceenvironment.

• On-site tours of food factories and logistics centers to nurture the next
generation• Local community and cultural contribution activities• Collaboration with NPOs/NGOs (environmental initiatives, etc.)• To grow together with society as a company
inspiring goodwill and trust, by increasing
community understanding for its initiatives.

Employees

Society7

Nichirei Group CSR Report 2018

Environmental Initiatives

Reduce Environmental Impact

Environmental Management
Basic Philosophy
The Nichirei Group undertakes environmental conservation activities based on three major issues: prevention of global warming, promotion ofsustainable recycling of resources, and symbiosis with nature. The Group’s environment-related approach is summarized in its environment- andbiodiversity-related policies.

The Nichirei Group’s Environmental Policy (Revised December 1, 2008)
Basic Policy
If the Nichirei Group is to pass on to future generations the natural abundance that is the source of food and good health—and tocontinue providing freshness and good taste by using superior products and a first-class logistics network—together with our stakeholders
we must reduce the environmental impact of our business activities and help create a sustainable society.
■ Prevention of global warming
We seek to reduce greenhouse gas emissions produced as a result of our food-related business activities, including procurement,
production, storage, and distribution. To this end, we are helping to curb global warming through endeavors that support a transformation of business and lifestyles.
■ Promotion of sustainable recycling
In addition to making the best use of our limited natural resources, the Nichirei Group is reducing the waste resulting from its businessactivities, reusing resources, and recycling. We also are helping build a recycling-oriented society by planning the recycling of resources
and purchasing these resources.
■ Symbiosis with nature
The Group, recognizing that natural resources are the product of diverse ecosystems and life forms, is making an effort to live in symbiosis
with nature.

Action Guidelines
Since the Nichirei Group believes that environmental problems are a major management issue, environmental considerations color all
its business activities.
1. Creating and implementing a management system
Given the environmental problems involved in the creation of a sustainable society, we are constantly evaluating and reviewing ouractivities so as to maintain and improve our management system. This we do in addition to promoting problem-solving activities, basedon the implementation of relevant regulations and the establishment of environmental targets.
2. Legal compliance
We have created our own standards, based on our grasp of the relevant laws and demands of society.
3. Environmentally appropriate products and services
We promote services and conscientious craftsmanship that works to minimize environmental impact at each stage, from the planning,
design, and development of each product and service through to procurement, production, distribution, sale, use, and disposal.
4. Increasing awarenessWe use environmental education and consciousness-raising activities to increase individual awareness, and proactively undertake
environmental conservation activities as both employees and citizens.
5. In harmony with society
In addition to proactively disclosing information, we participate in regional environmental activities and, together with society at large,
pursue various avenues to help improve the environment.

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Nichirei Group CSR Report 2018

Environmental Initiatives

Reduce Environmental Impact

Nichirei Group Biodiversity Policy
Biodiversity is both the foundation on which the survival of life forms depend, and a valuable asset that we must pass on to future
generations.
Our lines of business both are made possible by, and have an impact on, biodiversity and its many benefits. This we firmly grasp, andare constantly seeking to cooperate and collaborate with our stakeholders in order to conserve biodiversity and use it sustainably.
1. For our raw ingredient procurement we work with our partners to ensure that the materials from fisheries and processed items we
procure reflect the principles of sustainable use.
2. When it comes to the biological resources concerned in our business activities, we do our best to provide them as products to ourcustomers and to recycle resources into fertilizer, feed, and energy, as well as use them to their fullest extent for the sake of society.
3. We are promoting sustainable development by conserving energy and resources; adopting a policy of reducing, reusing, and recycling;encouraging green procurement; introducing harmful substance management; and working to reduce environmental impact on
biodiversity.
4. We put great effort into activities that contribute to the preservation and restoration of biodiversity in our facilities, land, and adjoining
areas, and in areas surrounding the sources of our raw ingredients.
5. We are helping create a society that nurtures biodiversity through environment-related consciousness-raising activities and information
sharing.

Management System
The Nichirei Group, comprising a wide variety of different businesses, promotes the design of environmental policies adapted to the businesscharacteristics of each member company, as well as highly effective environmental activities. The initiatives of each company are reported by theGroup Environmental Protection Committee, which meets three times a year. The Committee determines the environmental protection strategies
and policies of the entire Group based on the content and progress of company initiatives, and shares social trends on the environment. The
Representative Director and President serves as the chairperson of the Group Environmental Protection Committee, with executives and presidentsof operating companies making up the rest of the Committee membership.
Nichirei
The Board of Directors
The Group Environmental
Protection Committee

GeneralEnvironmental
Management
Administrator

Planning of, and proposals for, environmental protection strategies and policies of theentire Group
Monitoring of the Group’s progress
Approval of strategies for problem resolution
Chairperson: Kunio Otani, Representative Director and President
Members: Executives, presidents of each business, department heads
Gathering and transmission of information concerning the Nichirei Group's environmental conservation
activities and construction of a management system drafting and implementation of policies

Operating Company
The Board of Directors
The Environmental Protection
Committee

GeneralEnvironmental
Management
Administrator

Establish concrete targets and policies based on Group policies
Promote activities and manage their progress
Chairperson: The president of the business
Members: The executives and department head of the business
Gathering and transmission of information concerning the operating company's environmental conservation
activities and construction of a management system; drafting and implementation of policies

Each department, related businesses,
each worksite

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Nichirei Group CSR Report 2018

Environmental Initiatives

Reduce Environmental Impact■ Goals and Priority Challenges toward Fiscal 2020 (FY21/3)● Long-term Goals for FY12/3–FY21/3 (formulated in FY11/3)

Prevention of
global warming

Promotion ofsustainable
resource
circulation

Symbiosis withnatureReduce CO2 emissions
from the Nichirei Group

Reduce CO2 by 10% or 23,000 metric tons from the FY10/3 level at all domestic
establishments and vehicles owned.

Reduce CO2
emissions fromsociety as a whole

The Group's goal has yet to be determined.
Major activities include:
1. Reduction of containers and packages for CO2 reduction
2. Proposals for joint delivery, modal shift and other action to improve distribution
efficiency for CO2 reduction
3. Greening and other forest preservation activities for CO2 reduction
4. Activities conducted by business partners and employees' family members to help
reduce CO2
5. Green power and purchases of emission rights for CO2 reduction

Reduce waste
emissions from the
Nichirei Group

Achieve and keep a recycling rate of 99% at domestic plants and distribution centers.

Reduce waste
emissions fromsociety as a whole

Build a recycling system in collaboration with business partners and local communities tomake full use of resources

Activities centered on
business activities

Procure materials produced or caught in consideration of sustainable utilization and theirprocessed products.
Build a recycling system in collaboration with business partners and local communities tomake full use of resources

Activities centered oncontribution tosociety

Stimulate activities helpful to the preservation and restoration of biodiversity aroundbusiness establishments and material suppliers.
Engage in activities for raising environmental awareness and in the provision of
information to contribute to building a society that nurtures biodiversity.

■ Medium-term Targets and Results● Group Medium-term Business Plan Targets (FY17/3–FY19/3)

Item

•

Content

Reduction of CO2 emissions

2.4% reduction compared to FY10/3 in Group (Japan) CO2 emissions from energy by
the end of FY19/3* Energy used by Japan worksites and company-owned vehicles* CO2 emission factor derived from purchased electric power is fixed at 0.412[t-CO2/MWh], the CO2 emissions intensity unit announced by the Federation ofElectric Power Companies in FY10/3

Maintaining waste recycling rate andcontrolling waste discharging• Maintained waste recycling rate at over 99% at food plants and distribution centers• Reduce residue of material derived from animal and plant (food plants in Japan)

Water resource conservation

In consideration of the environmental conditions surrounding water in each
community, the Group engages in water resource conservation through efficient water
usage aimed at sustainable water usage (food plants in Japan)

Engaged in collecting data regarding the environment at overseas worksites

The medium-term environmental targets for FY17/3 to FY19/3 were set based on external trends, such as competitors in Japan and overseas, aswell as on laws and regulations. The reduction of CO2 emissions refers to the target reduction of all emissions, and covers all energy consumed
at worksites and by company-owned vehicles in Japan. The waste recycling rate continues to be maintained at 99% or higher. Food plants inJapan are also working to reduce residual animal and plant material. As for the conservation of water resources, as a food-related corporate group,
Nichirei has formulated behavioral targets for using water efficiently and is promoting efforts toward achieving those targets so that the bounties
of nature can be preserved for future generations. The entire Group is also engaged in collecting environmental data at its overseas worksites.

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Nichirei Group CSR Report 2018

Environmental Initiatives

Reduce Environmental Impact

Prevention of Global Warming

In addition to the Group working to reduce CO2
emissions at its places of business, such as
factories and logistics centers, all operatingcompanies have identified the major issues they
are facing and are working toward reducing
their CO2 emissions. The total amount of CO2
emissions for FY18/3 increased by

0.8%*1compared to FY10/3 due to increased

Nichirei Group CO2 Emission Trends(Thousands oftons of CO2)

400

200

299
232 225

increase of 17.3%*2. Going forward, in addition
to making its food factory and logistics center
operations

more

efficient,

updating

toenergy-saving equipment, and implementing

229

0.57

emission■ Variable power2● Emission 3

290

279

coefficient*

223

287

0.57

226

intensity*

0.56

228

0.52

100

(Tons of CO2 per tonof production)

273

1

0.75

227

0.49

0.5
0.25

0

0

2009

In addition, when using the coefficient ofdue to electricity production, there was ancoefficient*300

production, new office construction, and so on.
variation to compare the CO2 emission factors■ Fixed power1 emission

2013

2014

2015

2016

2017 (FY)*1 Fixed power emission coefficient: The CO2 emission intensity unit of 0.412 [t-CO2 /MWh] announced by the Federation ofElectric Power Companies in FY10/3, used nationwide.
*2 Variable power emission coefficient: Power conversion coefficient used by power companies in fiscal year utilized at each
worksite.
*3 Scope of power emission intensity: Nichirei Foods (Nichirei Foods-operated factories and affiliated factories in Japan) andNichirei Fresh (affiliated factories in Japan).
Excluding the following factories:
Nichirei Foods: Nichirei Ice, K.K.
Nichirei Fresh: Nichirei Fresh Farm Inc., Fresh Chicken Karumai Inc., Fresh Meat Sakudaira, Inc.

renewable energy, the Group will work on
reducing CO2 emissions throughout its entire supply chain.

Promotion of Sustainable Recycling of Resources

Nichirei Group Waste Discharged outside Worksites and Recycling Rate

The amount of waste discharged outside
worksites in FY18/3 was 45,200 tons, and thewaste recycling rate was 99.5%. Regarding

60

residual animal and plant material at factories,

50

targets have been set for each operatingcompany with a food factory, and efforts are■ Amount of waste discharged outside worksites
99.6
99.6
99.6

(Thousands of tons)

40

40.7

40.4

41.9

99.7

● Recycling rate

(%)

99.5
45.2

45.2

100
98
96

being made to reduce waste discharge.

30

94

Although recyclers can sometimes not be found

20

92

0

0

for waste destined for final disposal because of
the type and volume of waste, the Group will
work on further reductions, including by

2013

2014

2015

2016

2017

(FY)

controlling the amount of waste produced.

Water Resource Conservation

The Nichirei Group grasps and manages its consumption of water and quality of its wastewater through regular monitoring in compliance withvarious food safety and environmental protection laws and regulations. At worksites in Japan, positive steps are being taken to conserve water.
Going forward, the Group will examine the availability of necessary water resources at each regional base and how to assess the impact of risks.

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Nichirei Group CSR Report 2018

Environmental Initiatives

Reduce Environmental Impact

INPUT
Raw materials(Thousands of tons)

Material
Packaging materials(Thousands of tons)(Thousands of tons)

Energy1,000 GJ

Purchased power
Heavy oil
Kerosene
City gas
LPG
Gasoline (company-owned vehicles)
Light oil (company-owned vehicles)
Solar power generation
Breakdown of energy (1,000 GJ) used at each business company
Nichirei Foods
Nichirei Fresh
Nichirei Logistics Group
Nichirei Biosciences
Other
Water
Clean waterIndustrial water
Groundwater (well water)
Breakdown of water (1,000 m3) used at each business company
Nichirei Foods
Nichirei Fresh
Nichirei Logistics Group
Nichirei Biosciences
Other

1,000 kWhkl
kl
1,000 m3
tons
kl
kl
1,000 kWh

1,000 m3
1,000 m3
1,000 m3
1,000 m3

FY14/3
166
150
16
5,125
455,072
3,803
198
6,135
3,739
633
957
223

FY15/3
161
145
16
4,983
438,673
3,314
189
5,951
4,487
588
1,144
243

FY16/3
167
149
18
5,063
444,843
3,329
198
6,385
4,623
524
1,270
186

FY17/3
185
167
18
5,109
447,574
3,335
200
6,705
4,620
467
1,340
211

FY18/3
188
170
18
5,078
443,480
3,319
191
6,923
4,650
461
1,378
400

1,559
159
3,326
11
71
3,939
1,309
655
1,975

1,569
171
3,161
10
73
3,781
1,276
638
1,867

1,649
173
3,159
10
72
4,033
1,336
853
1,845

1,716
179
3,129
8
73
3,931
1,284
877
1,770

1,726
169
3,098
11
74
3,997
1,293
797
1,906

2,523
345
1,058
5
8

2,372
352
1,043
6
8

2,595
352
1,070
5
12

2,581
353
977
8
12

2,652
331
998
6
11

FY14/3
40.7
40.5
0.2

FY15/3
40.4
40.3
0.1

FY16/3
41.9
41.7
0.2

FY17/3
45.2
45.0
0.2

FY18/3
45.2
45.0
0.2

18,712
5,756
12,481
37—
298,0948

17,806
9,474
12,79545—289,396
7

18,46911,02912,33043—
286,382
5

21,227
11,453
12,43620—
279,465
4

20,965
11,426
12,733
46—
273,348
4

90,563
9,313
193,955
554
3,708
2,290
1,439
851
50
13

90,775
9,956
184,258
510
3,897
2,295
1,453
841
52
16

92,894
9,830
179,529
406
3,724
2,444
1,530
913
26
19

93,613
9,914
171,652
538
3,747
2,525
1,577
948
46
24

93,076
9,281
166,509
574
3,909
2,458
1,514
945
48
22

1,724
165
388
5
8

1,731
168
382
6
8

1,902
165
360
5
12

1,922
234
349
8
12

1,758
328
355
6
11

OUTPUT
Waste

Amount of waste discharged outside worksites(Thousands of tons)
Recycle volume(Thousands of tons)
Volume of waste for final disposal*1(Thousands of tons)
Breakdown of waste discharged outside worksites (tons) at each business company
Nichirei Foods
Nichirei Fresh
Nichirei Logistics Group
Nichirei Biosciences
Other
Atmospheric system
CO2*2
SOx*3
Breakdown of CO2 emissions (tons) at each business company
Nichirei Foods
Nichirei Fresh
Nichirei Logistics Group
Nichirei Biosciences
Other
1,000 m3
Water system
Drainage
1,000 m3
Sewer system
1,000 m3
Public water area (river etc.)
tons
Drainage load BOD*4
tons
COD*4
Breakdown of drainage (1,000 m3) at each business company
Nichirei Foods
Nichirei Fresh
Nichirei Logistics Group
Nichirei Biosciences
Other* The scope of applicable worksites is described on page 2.
* Total figures may differ due to the rounding effect.
*1 Within waste discharged, the volume of waste directly disposed of in landfills and simply incinerated not to be used as energy source.
*2 Calculations based on laws related to global warming countermeasures.
*3 Measurement implemented for facilities emitting soot and smoke. Does not include vehicle emissions.
*4 Calculates amount of emissions only in cases where drainage concentration measurements are conducted.

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Environmental Initiatives

Reduce Environmental Impact■ ISO 14001 Certification, etc.
The Nichirei Group prioritizes ISO 14001 certification at its food factories. At Nichirei Foods, certification has been obtained at 11 directly-operated
and subsidiary factories. Within the Nichirei Logistics Group, Green Management Certification has been obtained at Kyokurei Corporation and
NK Trans Inc. On a basis of production, the Group has obtained ISO 14001 certification at 70% of its food factories in Japan.
Green Management Certification (https://www.nichirei.co.jp/english/csr/environment/action/factory/center.html)■ Environmental Audits
In addition to covering areas such as organizational management and business processing, the Nichirei Management Auditing Department also
does Group management audits of important areas, such as compliance with environment-related law and conservation activities. Worksites thathave obtained ISO 14001 certification undergo internal environmental audits as well as yearly external reviews by a registered external review

Local offices whichhave obtained
ISO 14001

Areas concernedwith businessprocessing[Audit items]

Nichirei Group

Audits by the Management
Auditing Department

body.

[Important areas to be checked]● State of compliance with wastewater disposal standards● State of compliance with laws concerning waste and its
management● State of polychlorinated biphenyl (PCB) management● State of surrounding areas, relationship with the vicinity● Other (including response to new regulations)

Areas concernedwith facilities
Areas concernedwith theenvironment
Areas concernedwith organizational
management

Internal environmental audits

Regular ISO 14001 reviews by registered external review body

● In-house Environmental Education

Name

Content

Environmental e-learning

Held since FY10/3 for all employees.
Focuses on such pressing issues as prevention of global warming, resource recycling, and biodiversity.

Campaign to save energy
in employee households

Energy-saving campaigns for employee households have been held since FY12/3, to improve employees'
awareness of the environment.
The aim is to have participants share energy-saving tips, and have energy consumption reduction targets.

Training for new employees

They are taught about the company's environmental policies and goals, and the connections between
business and the environment.

Hands-on training on
company land in Urabandai

Hands-on training for employees was held on company-owned land in the Urabandai region of Fukushima
Prefecture between FY14/3 and FY17/3. There they help eliminate the Signal crayfish, a specified foreignorganism, as well as go on hikes in forests surrounding company land.

Hands-on training tosupport the Cypripedium
macranthos anendangered orchid, in the
town of Fujimi, Nagano
Prefecture

Nichirei has helped restore the endangered Cypripedium hotei atsumorianum—Fujimi, Nagano Prefecture's
Cypripedium Restoration Conference—since they were established. The town of Fujimi conducted ahands-on environment-related training program for Nichirei employees that included activities for theprotection of the Cypripedium macranthos.
Participating in activities to protect the Cypripedium macranthos allows one to experience the difficulty of
restoring the balance of nature once it has been destroyed.

Hands-on training(Biodiverse forests)

As part of the Good for lunches! Good for the forest! Program which protects biodiverse forests, Nichirei
Foods hold a hands-on nature training program for employees in forests it supports.
Nichirei Foods: Good for lunches! Good for the forest! Program
https://www.nichirei.co.jp/english/csr/environment/action/sales/index.html

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Nichirei Group CSR Report 2018

Environmental Initiatives

Reduce Environmental Impact■ Environmental Accounting
To gain a quantitative picture of the costs and environmental benefits of its environmental protection activities, the Nichirei Group has implemented
environmental accounting since FY01/3.
● Cost of Environmental Conservation
Cost category(Thousands of yen)
Food factories

Main activities

Costs within business area

Logistics centers

Investment

ExpenseInvestment

Expense112,232

1,059,840

81,670296,350

54,209731,073

15,20352,06052,77951,466

66,467

98,071

5,244

277,3010

146,2190

0

116

25,1480

19,695

10,602

29,070

0

0

0

837

112,232

1,079,536

92,388351,405

Food factories• Maintenance, management and load reduction of wastewater
treatment facilities for preventing water pollution• Maintenance and management of boiler facilities for heatingand hot-water supply, and of facilities for eliminating food odors

Breakdown

Costs for preventing
pollution

Costs for protecting
the global environment

Costs for recycling
resources

Upstream anddownstream costs
Management
activity costs

Social activity costs

Logistics centers• Maintenance, management and load reduction of wastewater
treatment facilities for preventing water pollution• Measures for controlling noise from stopped trucks• Adoption of energy-saving equipment, better efficiency ofequipment• Proper management of CFCs
• Proper storage of waste, arrangement of waste storage spaces
designed for thorough waste separation and sorting• Introduction of processing equipment for recycling• Outsourcing of recycling and waste processing, managementof proper processing• Recycling of water• Procurement and purchasing of environmental goods (green

purchasing)* Difference between green purchase and regular purchase• Development, maintenance and management of environmental
management system• Environmental education of employees• Cleanup activities in areas around worksites• Nature protection, cleanup activities and tree-planting activities
in areas further away from worksites• Donations to environmental conservation programs andorganizations

Total● Main Investments for FY18/3

Scope of calculation(Food factories)● Maintenance, management and load reduction ofwastewater treatment facilities● Installation of high-efficiency refrigeration equipment andhigh-efficiency boilers(Logistics centers)● Costs for heat-reflective and thermal insulation work on
buildings● Installation of energy-efficient lighting● Maintenance, management and load reduction ofwastewater treatment facilities● Economic Effects of Environmental
Conservation Measures in FY18/3(1) Based on the List of Fixed Assets in the accounting system, depreciation andamortization is calculated for equipment related to environmental burden,such as wastewater treatment facilities, using the statutory useful life.
(2) Personnel expenses are calculated by determining the man-hours required foreach environmental conservation activity, and multiplying this by the numberof workers and the average wage rate at the worksite.

(Thousands of yen)

Gain on sales from recycling

Reductions in the cost of purchasing raw
ingredients/materials and in the cost of processing
waste due to a reduction in waste
Reduction in energy costs due to energy savings
Cost
reductions (electricity)
Reduction in energy costs due to energy savings (heat)Fewer resources consumed (water savings, decrease incontainers and packaging, etc.)

Total

Method of calculation

Scope of calculation

Description of effect
Increased
earnings

Main food factories and logistics centers in Japan

Value of effect

Eight Nichirei Foods-operated factories in Japan that haveobtained ISO 14001 certification
Method of calculation

66,417(1) Only substantial effects that can be calculated based on
measurements, etc. have been included in the total (gains
on sales arising from recycling promotion activities,
reductions in costs arising from reduced power consumption,etc.)(2) Equivalent to the profit contribution produced in FY18/3,
attributable to new environmental conservation activities
that were conducted in FY17/3 and FY18/3 (including
activities started midway through the fiscal year).

413
8,211
4,522
4,971
84,534

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Nichirei Group CSR Report 2018

Environmental Initiatives

Reduce Environmental Impact■ Status of Environment-related Incidents, Legal Violations
In FY18/3, there were no legal violations or environment-related incidents that had a serious impact on the environment.

■ Ecology Committee Leads Environmental Resource Management
Most of the energy consumed by Nichirei Biosciences Inc. is used by its development center. For that reason, the company set up an Ecology
Committee to make decisions related to environmental conservation. The committee's work entails creating a wide range of proposals for savingenergy, providing feedback on matters subject to company-wide decisions, and serving as a link between employees and the company.
These tasks are facilitated by a regularly issued bulletin, the Eco-tan News, and all employees are involved in resources management.
In FY18/3, the committee verified the effects of air conditioner grills designed to increase the efficiency of heating and cooling. The grills had
been introduced in FY17/3 for the purpose of reducing the energy consumed by air conditioners. Furthermore, in a project to relocate certain
production bases from January 2019, the committee moved to make the new research and production base environmentally friendly. In addition
to introducing systems to visualize solar power generation and power consumption, advanced environmental equipment will also be installed.
Besides energy-saving effects, consideration is also being given to workplace comfort, with proposals being put forward for external awnings
and an advanced lighting system.

A ceramic air

Discussion is encouraged at committee

conditioner grill

meetings

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Nichirei Group CSR Report 2018

Environmental Initiatives

Reduce Environmental Impact

Initiatives for Sustainable Raw Ingredients
Basic Philosophy
To provide value to society and to continue to survive, it is vitally important for the Nichirei Group to secure a sustainable source of ingredients.
Moreover, given that raw ingredients are harvested from natural ecosystems for its business, the Group recognizes that it is similarly importantfor it to address environmental issues in the supply chain—specifically, that it puts effort into energy use and climate change issues, takes into
account water usage and impacts on biodiversity, and that it tackles pollution, waste and the efficient use of resources.
Having selected “maintain a sustainable supply chain” as one of the top-priority important items in the Nichirei Pledge (its basic CSR policy),
the company established the Nichirei Group Sustainable Supply Chain Policy on April 1, 2017.
Nichirei makes efforts not only for its own business activities, but also to address societal and environmental issues in its supply chain. In proper
collaboration with its suppliers and partner companies, Nichirei will work to maintain a sustainable supply chain so that it can provide safe andhigh-quality products and services in a reliable manner.

Management System
To promote efforts to maintain a sustainable supply chain for all of Nichirei Group, the Group established the CSR Management discussion meetingin FY17/3. During this meeting, the Group’s common basic policy is examined, issues being faced and efforts being made by each operatingcompany are shared, and so on. The meeting is held six or more times per year, and the results of the discussions are reported to the Board of
Directors and the management conference, providing support for operating companies’ efforts to maintain a sustainable supply chain. The Nichirei
Group Sustainable Supply Chain Policy was also established through the CSR Management discussion meeting. The Group procures products
and services in accordance with the following policy and asks suppliers to also assent to and comply with it.

Nichirei Group Sustainable Supply Chain Policy■ Legal compliance:■ Fair business practices:■ Human rights:■ Environment:■ Product quality and safety:■ Information management:■ Local communities:

We comply with the laws and social norms of each country and region where we operate.
We employ fair, transparent, and impartial business practices.
We respect human rights and provide safe, healthy work environments.
We strive to reduce environmental impact and consider the health of the global environment.
We work hard to deliver safe, high-quality products and services.
We manage information properly and disclose information related to our business activities in a timely,
appropriate manner.
We seek to build close cooperative relationships with local communities, as a good corporate citizen.

Nichirei Group Sustainable Supply Chain Policy (https://www.nichirei.co.jp/english/csr/supplychain/index.html)
Nichirei Foods conducts quality assurance audits in the form of factory inspections on each factory of contracted producers about once every
two years. As part of this it confirms the implementation status of its Sustainable Supply Chain Policy.
In regard to environmental education within the Group, as part of its Training for New Managers, employees learn about sustainable raw
ingredients as well as about the latest trends in Japan and overseas and issues faced by the Nichirei Group. In addition, the following goals havebeen set as a Group initiative.

■ Priority Challenges for Fiscal 2020 (FY21/3) (focus on business activities)•

Procure materials produced or caught in consideration of sustainable utilization and their processed products.

•

Build a recycling system in collaboration with business partners and local communities to make full use of resources.

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Nichirei Group CSR Report 2018

Environmental Initiatives

Reduce Environmental Impact

Initiatives for Fiscal 2017 (FY18/3)
The Nichirei Group implements a variety of efforts for supply chain management in relation to its business activities.

■ Sustainable Procurement in Symbiosis with Nature and Neighborhoods
Mauritanian potted octopi are one of the quality materials used at Nichirei Fresh. For more than 40 years, the company has been working withlocals to catch octopi using pots, allowing it to provide high-quality octopus ingredients. This technique is less likely to damage fishing areas andoverfishing. The group is working hard to develop sustainable fishing practices by complying with no-fishing periods and no-fishing standards by,for example, using both Brazilian and Mexican wild shrimp.
In addition to constantly offering a reliable supply of safe and secure foods, Nichirei Fresh Inc. will continue to develop and procure quality
materials as it focuses on sustainable resources, as well as the importance of having a sustainable environment and society.

■ Efforts for MSC/ASC-certified Materials
Nichirei Fresh developed the Forest of Life Project, which it has maintained together with Indonesia supplier PT. Mustika Minanusa Aurora (MMA)
and Tarakan City in North Kalimantan since 2006, and worked on improving the aquaculture industry in partnership with WWF Indonesia and
WWF Japan. As a result, this initiative became the first in Indonesia to receive ASC certification*1 for black tiger shrimp in August 2017.
As of June 2018, Nichirei Fresh has 16 types of marine products that have obtained MSC certification. In FY18/3, Nichirei Fresh developed
herring roe Matsumae-zuke and herring roe Wasabi-zuke made with MSC-certified Pacific herring (roe) with a business partner that has obtained
CoC certification*2. Going forward, with an aim of expanding its sales of sustainable marine products, Nichirei Fresh will continue to increase thenumber of ASC-certified and MSC-certified*3 marine products it offers.
*1 ASC certification: Marine products certified by the ASC (Aquaculture Stewardship Council) as having been cultivated in a sustainable manner.
*2 CoC certification: Certification of the management of the processing and distribution processes.
*3 MSC certification: Natural marine products certified by the MSC (Marine Stewardship Council) as having been cultivated in a sustainable manner.

ASC and MSC Certifications for Marine Products (https://www.nichirei.co.jp/english/ir/integrated/pdf/P17-18.pdf)
Maintain a sustainable supply chain (https://www.nichirei.co.jp/english/csr/report/pdf/csr2018.pdf)■ Initiatives for FA IngredientsDrug-resistant bacteria—bacteria on which antimicrobial agents (antibiotics) no longer work—have become an international issue. To allay
consumer anxiety toward this issue, Nichirei Fresh has been committed to raising FA (free from antibiotics) chickens for more than a decade.
In order to treat illness, prevent risks of disease associated with intensive poultry farming, and stimulate further growth, antibiotics, synthetic
antimicrobial drugs and other pharmaceuticals are used in the farming of most generally available broiler chickens.
While FA chickens do receive vaccinations, these other pharmaceuticals are not used at all throughout the chicken’s life. Instead, FA chickens
are bred using a number of unique methods. As well as being fastidious about their breeding environment, a resistance to disease is developedin chickens by using lactic acid bacteria or other viable agents that benefit their health, as well as herbal medicines (Chinese medicines), to boost
their inherent immune strength. FA chickens are kind to humans, kind to chickens, and kind to the environment.
FA (free from antibiotics) chickens (https://www.nichireifresh.co.jp/product/livestock/detail/?id=376) (Only available in Japanese)■ Suppression of Methane Gas Emissions by Cattle
Suppression of methane gas emissions by cattle (https://www.nichirei.co.jp/english/csr/environment/action/locality/index.html)

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Nichirei Group CSR Report 2018

Environmental Initiatives

Reduce Environmental Impact

Initiatives for Energy and Climate Change
Basic CSR Policy
Established as an environmental initiative, the Nichirei Group’s Environmental Policy includes a theme of preventing global warming. Corporate
business activities and global climate change have a great deal to do with each other. The business activities of a food-related corporate group,in particular, rely heavily on natural ecosystems for procurement of ingredients, and are thus greatly influenced by climate change. Since using
cold storage facilities is indispensable for the Nichirei Group’s business activities, it recognizes that rising energy prices and responding toenvironmental regulations are significant risks. Based on this recognition, the Group is working on the following in cooperation with its suppliers,
partner companies and so on.
●●●

Efficient energy use in the production of food products
Reduction of greenhouse gases through increased efficiency in temperature-controlled transportation
Reduced impact of business activities on climate change through promoting the use of renewable energy,
from procurement and production, through to storage, logistics, and sales■ Risks and Opportunities from Greenhouse Gas Emissions
The Nichirei Group sees various risks and opportunities associated with climate change, and is working hard to address them. For instance, itviews changes to the feed-in tariff for renewable energy as a potential institutional opportunity of increased revenue from the solar power
generation projects conducted on idle land owned by the Group. In its refrigerated logistics business, the Group perceives several risks, including
an increase in the outside air temperature, a rise in energy prices, compliance with regulations on alternative CFCs, and the emergence of alternative
methods for food preservation. Any rise in the outside air temperature does also present some positive aspects for the processed foods business:sales of microwave foods and ready-cooked foods increase as people avoid high-temperature cooking on hot days, and ice products sell well as
people want to lower their body temperature against the heat.
While changes in temperature and rainfall could lead to a physical impact in the localized failure of crops, the Nichirei Group instead sees thisas a business opportunity because it hedges against risks concerning materials supply to cope with such events. Furthermore, to counter disasters,such as flooding caused by changes in precipitation patterns, the Group also anticipates and responds to operational shutdowns from theperspective of business continuity planning (BCP). And to counter the risk of consumers changing their choices, the Group is working hard todevelop products and provide meat and poultry products that reduce the emission of substances causing global warming.

Management System
Environmental management system (https://www.nichirei.co.jp/english/csr/environment/system.html)
Regarding the actual values for the Group targets, actual greenhouse gas emissions for Nichirei Logistics Kanto, Inc.’s Tokyo Distribution Centerand Logistics Network, Inc.’s Shinagawa Distribution Center have been verified by a third party under the Tokyo Metropolitan Government’s(TMG) Tokyo Cap-and-Trade Program, and a reduction plan until fiscal 2019 (FY20/3) has been submitted.
CO2 emissions data published on the TMG Bureau of Environment website (9:00–18:00, weekdays)(https://www9.kankyo.metro.tokyo.jp/koukai/koukai.html)
Energy Consumption of the Nichirei GroupSCOPE 1 and SCOPE 2 CO2 Emissions of the Nichirei Group■ Fuel-derived CO2(SCOPE 1 emissions)(1,000 GJ)(Tons of CO2)6,000

300,000

5,000

5,125

4,983

5,063

5,109

5,078

200,000

3,000

150,000

2,000

100,000

1,000

50,000

0

0
2014

2015

2016

2017

(SCOPE 2 emissions)

298,932

290,212286,557

257,843

248,880

243,589

235,871229,179

41,08841,33242,96843,814

44,219

2013

2014

2015

2016

2017

279,685 273,398

250,000

4,000

2013

■ Power-derived CO2

(FY)

(FY)

* Calculated based on the Act on Promotion of Global Warming Countermeasures.

18

Nichirei Group CSR Report 2018

Environmental Initiatives

Reduce Environmental Impact

Greenhouse Gas Emissions Outside the GroupTo prevent global warming, it is important to reduce greenhouse gas (GHG) emissions across the whole value chain, not just within thecorporate group.
Preliminary investigations have shown that the Group’s GHG emissions across the value chain (Scope 3) is larger than Scope 1 + Scope 2
emissions. Emissions are particularly large in the raw materials procurement and the outsourced logistics categories. The Group will work to
reduce GHG emissions across the value chain, such as by promoting modal shifts in cooperation with suppliers.

Initiatives for Fiscal 2017 (FY18/3)
The Nichirei Group’s approach to environmental conservation(https://www.nichirei.co.jp/english/csr/environment/concept.html)■ Initiatives in Production Regions
Suppression of Methane Gas Emissions by Cattle (Nichirei Fresh)

Ruminants, such as cattle and sheep, are known for their production of
methane gas, which has 21 times the greenhouse effects of CO2. The gas
is produced in their stomachs, released internally when their food isbroken down and digested, and then release externally. Since prevention● Methane Gas Production
Methaneemissionscause greenhousegasof global warming has become a worldwide issue, Nichirei is undertaking
the suppression of methane gas emissions produced by cattle.
The hydrogen generated by the activity of microbes in the rumen (theHydrogenHydrogen

Emitted externallythrough burps

Methanogens

Methane gas
createdHydrogenHydrogenfirst stomach) during the digestive process is turned into methane gas bymethanogen, and released externally through burps. If cattle are given
flaxseed oil fatty acid calcium*1, the hydrogen in their rumen combineswith the unsaturated fatty acids in the oil to form saturated fatty acids.

Nichirei suppresses the creation of
methane gas by providing feed containing
flaxseed oil fatty acid calcium.

Since research results show that methane gas production can besuppressed, to this end Nichirei has been testing crossbred cattle (maleWagyu and female dairy cattle) on domestic farms since FY10/3.
Using Kyoto University’s life-cycle assessment (LCA)*2 method● Evaluation of Impact on Global Environment■ Normal rearing ■ Fatty acid calcium added to feed
■ Fatty acid calcium added to feed + Shorter fattening period

developed in 2010 to gauge fattening methods, Nichirei has been able
to confirm that the environmental impact of these crossbred cattle is 10%
less than when conventional fattening methods are used. Further, there
is an improved omega balance*3, while feed costs are lower due to theshorter fattening period resulting from improved growth*4. Nichirei is
now moving toward the sale of beef produced through a nationwide
rearing program using flaxseed oil fatty acid calcium. In addition tocross-breeding, Nichirei is also expanding this production method to

（%）

100
90
80
70
60
50
0
Warming

crossbred Wagyu and Holstein cattle (bulls).

Acidification

Eutrophication

EnergyConsumption* Evaluation by Kyoto University *3 Carrying figure*1 Flaxseed oil fatty acid calcium: A fusion of calcium with the oil extracted from flax seeds rich in alpha-linolenic acid (omega-3 fatty acid).
*2 Life cycle assessment (LCA) is the technique of comprehensively analyzing and assessing a product’s environmental impact throughout its entire life cycle, from the raw
materials, manufacture and distribution, through to disposal.
*3 Omega balance: The balance between omega-6 and omega-3 fatty acids, which are particularly important essential fatty acids for the human body.
*4 This results from the development of low-cost techniques for cattle production, based on a superior balance of omega-6 and omega-3 fatty acids, and the subsequently
reduced environmental impact. Source: Ibaraki Prefecture Hitachiomiya Regional Agricultural Research and Promulgation Conference report, 2011.

■ Initiatives at Food Factories
Factories at Nichirei Foods are equipped with refrigeration and cold storage facilities.
High-efficiency equipment was previously installed in an attempt to conduct more thorough operations management. In FY15/3, an analysisof data from all factories was conducted, operational issues were extracted, and measures were implemented to improve those issues. Outcomesfrom verifications conducted at a number of factories have been expanded to other factories.
In FY18/3, in addition to reducing energy consumption by relocating food factory lines, consolidating and reviewing manufacturing processes,
adjusting boiler-related operations and undertaking other energy-saving activities, Nichirei Foods also adjusted the amount of hot water used forwashing and updated the air conditioning. Through various initiatives at its factories, the company is reducing its CO2 emissions intensity.

19

Nichirei Group CSR Report 2018

Environmental Initiatives

Reduce Environmental Impact■ Initiatives in Cold Storage Facilities and Logistics Centers
Preventing Refrigerant Leaks to Boost Operating Efficiency

The Nichirei Logistics Group is stringently checking equipment to reduce refrigerant leaks at all
domestic centers.
In FY14/3, the Group installed high-sensitivity detectors, which are 10 times more accurate thanthose previously used, and can detect even minor leaks. By managing the amount of refrigerant
used and eliminating leaks, the Group can achieve near-optimum equipment functioning. At thesame time, the Group is working to avoid the unnecessary use of electricity. The Group has
non-regular staff carry out inspections, since they notice energy-saving points that regular staff
may overlook. Energy-saving inspections of the entire center are conducted in parallel with therefrigerant checks as both contribute to CO2 reduction and the prevention of global warming.
Since September 2018, the Nichirei Logistics Group has been conducting a joint demonstration in collaboration with Hitachi, Ltd. at Funabashi
DC, utilizing state-of-the-art IoT technology for the early diagnosis of faults in refrigeration equipment and to improve the efficiency of equipment
operations and maintenance. Visualizing energy consumption and analyzing operational improvements will assist the high-efficiency operationof cold storage facilities and will help reduce CO2 emissions.
● Conceptual Diagram of Joint Demonstration
Nichirei Logistics Group

HitachiCollection

StorageAnalysis

Field data
sensing

OT
gatewayOT
platform

Meteorological data
Data on refrigerationequipment operations
Data on warehouseenvironment● Reduction in energy costs● Reduction in maintenance/repair
costs● Elimination of sudden
failures/recovery work
● Reduction in number of patrol
inspections● Detect signs of fault at an early stage and with a high degree of
accuracy● Visualization of energy consumption and analysis of operational
improvements assist in high-efficiency operation of refrigerationequipment

Use of Natural Refrigerants

At its cold storage facilities, the Nichirei Logistics Group is promoting a switch from refrigeration equipment using hydrochlorofluorocarbons(HCFCs) to that using natural refrigerants. As a matter of policy, the Group chooses natural refrigerants when building new cold storage warehouses
and extensions to facilities.
● Example of Switch to Refrigeration Equipment Using Natural Refrigerants

Fiscal Year

Facilities Upgraded to Natural Refrigerant Equipment

Program Providing a Subsidy for Upgrade

FY14/3

Logistics Network Sugito TC

FY15/3・Nichirei Logistics Kansai Sakishima DC
・SCG Nichirei Logistics Co., Ltd. (Thailand)

FY16/3・Logistics Network Funabashi DC 8th
Expansion Building
・Nichirei Logistics Tokai Shiratori DC 8th
Expansion Building

Program for applying advanced technologies
to promote wider application of equipmentusing energy-saving natural refrigerant

FY17/3・Nichirei Logistics Chushikoku
Takamatsu-Nishi DC 2nd Building
・Nichirei Logistics Tokai Haruhi DC 2nd
Building・Logistics Network Funabashi DC 4th and9th Building

Program for applying advanced technologies
to promote wider application of equipmentusing energy-saving natural refrigerant

FY18/3・Nichirei Logistics Tohoku
Sendai DC 1st Building
・Nichirei Logistics Tohoku
Morioka DC 2nd Building
・Nichirei Logistics Kanto
Mito DC 1st Building

Project to promote energy-efficientcommercial refrigeration and air conditioning,for the creation of a CFC-free society

Subsidies for businesses thatrationalize energy usage

20―

Nichirei Group CSR Report 2018

Environmental Initiatives

Reduce Environmental Impact

Corporate Collaboration for More Efficient Energy Consumption

during product storage, as well as CO2 emissions and fuel consumption● Three Companies Collaborate for Cut Costs,
Improve Shipping

for transportation and production by increasing the efficiency, across the(Before implementation)

The Nichirei Logistics Group is working to reduce electricity consumption

board, of the supply chain involved in logistics, production, and storage.

Hokkaido Foods

Thus, both Nichirei Foods and Hokkaido Foods, one of the former’s

Nichirei Foods

Production Plans

Sales Plans

shortages and the only partial sharing of information. In addition, theFactory Inventory Plans

Operational Information

business fluctuations in production and shipping caused by sales resulted

Nichirei Logistics Group Inc.

sub-contractors, secured safety stock in order to prevent inventory

Order

Order Plans

Shipping Plans

in a major burden for both companies’ supply chains.

Area Inventory Plans
Deliver

In FY10/3, The Nichirei Logistics Group took over control of Hokkaido

Production Performance

Foods’ logistics and introduced several improvements. The result of their

Factory Inventory Performance

Area Inventory Performance

Improved
Production
Efficiency

Reductionof
Inventory

study of the business fluctuations of the logistics side of business, which
had been an ongoing problem right from the beginning, led to a

Sales Performancesuggestion that there be collaborative management between threecompanies. This would cover operational information, sales plans,
re-stocking and inventory plans, production plans, and even shipping(After implementation)plans, aimed at leveling out logistics. FY12/3 saw the start of the threecompanies’ improvement project begin. In October of 2012, it went into

Hokkaido Foods

Nichirei Logistics Group Inc.

Nichirei Foods

Production Plans

Restocking Plans

Sales Plans

Total
Inventory Plans

Operational Information

full operation, and improvement activities continue to this day.
■ Initiative
1. Use groupware to make essential information of all three companies transparent;change to a comprehensive management system through daily data sharing andby linking production, inventory, and shipping planning.

Reflected in
Production Plans
Production Performance
Factory Inventory Performance

Shipping Plans

Sales Performance
Area Inventory Performance

2. Switch from Nichirei Foods’ restocking plan; prioritize reducing logistics centerstock; and restock, taking into account the efficiency of consolidated shipping andproduction.

■ Results
・Reduction of total inventory (down 25.7%)
・Leveling of logistics
・Improvement in loading efficiency
・Elimination of frequent shipping (restocking)and small lots

・Reduction of energy consumption
at cold storage facilities and foodfactories
・Improved productivity
・Less clerical work

Fuel Conversion from Liquid Fuel (Fuel Oil, Kerosene) to Municipal Gas and LPG

Nichirei is in the process of converting to municipal gas and LPG, which have low CO2 emission rates compared with fuel oil and kerosene.
In FY13/3, Nichirei transitioned from using fuel oil to municipal gas to run the boilers at the Nagasaki plant, later implementing the samechange at its Funabashi and Yamagata plants. Along with fuel conversion, the switch to high-efficiency equipment and the promotion ofenergy-saving activities have resulted in substantial reductions of CO2 emissions.
Utilizing Waste Heat

Nichirei Foods Inc. is using high-temperature, high-pressure steam to heat the oil in deep fryer equipment installed at its Funabashi No. 2 Plant.
The drainage produced by this kind of steam is normally collected and then emitted as is, without using the flash steam that forms when it is
exposed to the air. Nichirei Foods, however, installed a system for collecting the flash steam, with a view to reusing it in preprocessing steamers.
The system releases the high-temperature, high-pressure drainage into a collection tank, returns the high-temperature drainage down anexisting route using a pump, and sends the resultant flash steam to the preprocessing steamer via a pipe so that it can be used. Use of thissystem has enabled the company to reduce the amount of steam used in its steamers, and cut CO2 emissions by 21 tons per year.

21

Nichirei Group CSR Report 2018

Environmental Initiatives

Reduce Environmental Impact

Use of Solar Energy

Solar energy generation equipment has been installed at Nichirei Foods’ Funabashi plant and at Nichirei Ice, K.K. The Nichirei Logistics Group also
installed solar panels at the Matsue DC and Kushiro DC in 2017, and at the Sakishima DC in 2018. Approximately 1.08 million kWh of solar poweris expected to be generated annually at these three distribution centers, equivalent to an annual reduction in CO2 of approximately 448.3 tons.

Sakishima DC

Matsue DC

Kushiro DC

Greening Initiatives

Nichirei’s CO2 reduction initiatives include developing CO2 sinks and reducing emissions. In addition to managing green spaces on its properties,
it participates in planting trees and flowers and weeding together with its neighbors.

Greening of the Kansai plant■ Initiatives in Transportation and Delivery
Optimal Logistics for CO2 Reduction

CO2 Emissions and Intensity during Transportation of
Products by Nichirei Foods

Nichirei Group cutting logistics-related CO2 emissions Shipping-related
CO2 emission cuts seen as important priority.
The Eco Ship Mark is a sign that the company contributes to(Tons of CO2)

■CO2 emissions● Intensity (tons of CO2 per million tkm)
220.0

25,000environmental measures. It can only be used by shippers and logistics
firms certified as using a minimum percentage of marine transportation.

23,000Prioritizing the reduction of CO2 emissions during the transportation

23,662

23,163
21,79221,000and delivery of products, Nichirei Foods has obtained Eco Ship Markcertification.

19,000162.5

During FY18/3, despite having promoted a modal shift from trucks

163.0

17,00018,777
161.0

160.0

17,242to rail for some of its transportation from factories in Hokkaido to Kanto
15,000and for some of its transportation from Kanto to Hiroshima, an increasein sales volume resulted in an increase in CO2 emissions compared to

121.3

0

the previous fiscal year. In FY19/3, Nichirei Foods will promote a

2013

reduction in domestic transportation distances by changing the

2014

2015

2016

118.3

0

2017

(FY)

* The method for calculating energy consumption was changed fromthe ton-kilometer method to the fuel method.

unloading ports for foreign imports, and will promote a greater use ofrail by reviewing its logistics bases.

The Nichirei Logistics Group believes that contributing to the lives of consumers by shipping food is its most important duty. Using the best
logistical solutions, such as transfer center functions and joint shipping, it is undertaking to provide consumers with optimal logistical efficiency,
while also reducing CO2 emissions. In addition, to increase shipping efficiency the Group is reducing the number of trucks it uses. This it can do
thanks to increased loading efficiency, the improved circulation of vehicles, and reduced downtime. The change reflects a softening of delivery
requirements (shipping timeslots, locations), which result in reduced CO2 emissions.
Initiatives at cold storage facilities, logistics centers(https://www.nichirei.co.jp/english/csr/environment/action/factory/center.html)
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Nichirei Group CSR Report 2018

Environmental Initiatives

Reduce Environmental Impact

Activities with European Logistics

The Nichirei Logistics Group’s overseas business began with its expansion into the Netherlands in 1988. As of March 2018, Nichirei Holding
Holland B.V. has eight companies—including cold storage facilities and low temperature shipping businesses—and is expanding from its hub in
Rotterdam. Logistics in Europe center on shipping by truck, reflecting the advanced state of the local infrastructure. During the past few years, amodal shift has been promoted in the interests of the environment, resulting in a transition from highway truck transportation to maritime andrailway transportation, making it possible to ship large volumes of goods. Mostly, when a containership docks at Rotterdam, the containers are
offloaded and trucked to a warehouse. With containerships are getting progressively larger, and it is now possible to fit 9,000 forty-foot* containers
on the larger vessels. Shipping these by truck would mean using 9,000 trucks, which would generate large amounts of CO2.
Holland’s Hiwa Rotterdam Port Cold Stores B.V. uses river barges to reduce its CO2 emissions when moving containers from the container yard
to their warehouses. With up to 25 containers piled on one barge, some 3.5 tons less CO2 is produced than were 25 trucks used to transfer thecontainers. Currently there are two barge vessels in the Netherlands that have their own container cranes. Both of them are working for HIWA.
At Transports Godfroy in France, the environmental initiatives of its shipping business include introducing eco-driving training for its drivers in
FY12/3. Meanwhile, the social contribution activities of its shipping business include the donation to charities—of course with the permission of
the consigners—of goods it has had in storage that are past their use-by date.
* 40 feet = 12.192 meters

Hiwa Rotterdam Port Cold Stores
B.V.

River barge

Eco-driving Seminars, Tournaments Boost Driver Awareness

The Nichirei Logistics Group has formed a national network of affiliated transportation and delivery
companies, and encourages them to obtain Green Management Certification. As of April 1, 2017,75 of the 102 member companies had obtained green management certification.
In an effort to improve the quality of shipping by these companies, Logistics Networkholds driver tournaments and eco-driving seminars at six locations across the country eachyear. In the driver tournaments, truck drivers compete against each other for points, which
are accumulated from practical exams on general inspections and written tests covering basic
safety and quality rules related to shipping services offered to customers.
These tournaments help the participants improve the safety of shipping services, maintain

Driver contest

the high quality of those services, gain inspection skills, and increase their awareness of safe
driving, while at the same time giving each individual pride in their work and a sense of social responsibility. The fifth national tournament washeld in FY18/3 with a view to further improve shipping quality.
In addition, Logistics Network began a full-fledged initiative in FY15/3 for using pallets in its main shipping operations and establishing
services with fixed arrival and departure times. The downtime at bases and time spent loading were vastly reduced, which led to an
improvement in the work environment of long-haul drivers. In addition, the fact that vehicles were idle for less time led to their having lessof an environmental impact.
Green Management Certification

NK Trans is working to reduce the environmental impact of its business activities to better co-exist with society as a transportation business. It
thus considers environmental conservation to be part of its corporate social responsibility.
In addition to complying with such environment-related laws and regulations as pollution prevention ordinances, NK Trans promotes eco-driving
and use of the idle-stop system, in addition to the use of low-emission vehicles, and compliance with the relevant waste disposal laws.
As a result, the Numazu Logistics Center obtained green management certification in January 2012, while the Niiza Office (transportation)
obtained it in March 2014. Kyokurei’s main office and logistics centers (in the Tokyo districts of Yamashita, Daikoku, Atsugi, and Nakai) haveobtained Green Management Certification, as have all distribution centers of Kyokurei Operation.
* Green management certification: The certifying organization, the Foundation for Promoting Personal Mobility and Ecological Transportation, conducts evaluations,certification, and registration of workplaces that carry out initiatives above a certain level, as defined in the Green Management Promotion Manual, published by Japan’sFoundation for Promoting Personal Mobility and Ecological Transportation.
23

Nichirei Group CSR Report 2018

Environmental Initiatives

Reduce Environmental Impact

Efforts for Modal Shift

In recognition of its achievements in expanding modal shift in frozen food shipping, the Nichirei Logistics Group’s Logistics Network received theModal Shift Best Operator Award (Grand Prize) at the 14th Award for Excellent Business Entities Working on Modal Shift in 2016, and received
the Green Logistics Partnership Meeting Outstanding Business Award*1 in 2017. Logistics Network is a third-party logistics (3PL)*2 company that
improves and manages all logistics operations for its shipper clients, from procurement and stock control to distribution. It has been promoting
modal shift for more than 10 years. Rather than just simply using railways and ferries, it implements a variety of advanced solutions, such as having
several shippers share a trunk line for transporting goods and making shipments more efficient and standardized by utilizing a demand forecasting
system. Since 2009, by increasing distances transported by ferry on the Pacific seaboard using container relay services, Logistics Network has
achieved a 30% reduction in CO2 emissions compared to the previous route combining land transportation with services along the Sea of Japan
coast. In 2017, the company received an award along with Nichirei Foods (the owner of the cargo) and its partner companies, Ocean Trans Co.,
Ltd. and Nippon Express Co., Ltd. Going forward, it will continue to promote sustainable business management that reduces environmental
impact and addresses labor shortages.
*1 An institution administered by the Ministry of Land, Infrastructure, Transport and Tourism and other bodies that awards excellent initiatives that promote CO2 reductionin the logistics field.
*2 3PL: Third-Party Logistics■ Driver Advance Reservation System
At distribution centers, truck arrivals tend to be concentrated at the same times. Being uncertain of what cargo is onboard further complicatesthe loading and unloading, and drivers have to wait around for long periods of time, which becomes a social problem.
To alleviate and eliminate this problem of trucks being on standby, the Nichirei Logistics Group began operating the Driver Advance Reservation
System in October 2017. By using the system, trucks (shipper or shipping company) can reserve their preferred time against available
loading/unloading times set for each distribution center. Details of the loaded cargo are also sent to the distribution center in advance, whichmeans that the checking of orders by shipping companies, which used to be done once the truck had arrived, can now be performed ahead oftime. This facilitates loading and unloading operations, which in turn, shortens the hours that each truck is on the road, and ultimately leads toa reduction in CO2 emissions. Starting with the Logistics Network’s Sugito DC and Osaka Futo DC, the system will be gradually rolled out to other
distribution centers.

■ Initiatives at Head Office, and Offices
Energy-saving Air Conditioning, Lighting

The Nichirei Group uses energy-saving equipment in its buildings, conserves energy in its offices, and uses low-emission vehicles. At its head
office building, the Group has a policy of changing room temperatures and lighting levels, and ensuring that lights are turned off. In addition,
the Group introduced the use of hybrid vehicles at its operating branches, began using electric vehicles at its food plants and cold storage centers
on a trial basis, and uses these vehicles to transportation customers.
Real-time Energy Monitoring at Technology Center

In June 2011, Nichirei introduced demand controllers to monitor electricity consumption in real-time at its technology development center. The
upper limit of electricity consumption can now be controlled during periods of high demand. Controllers are also used to curb the use of air
conditioners, and to evaluate the operation of storage testing warehouses used for preservation testing and the cold or frozen storage of raw
ingredients and test products during the summer.
As part of its yearlong initiatives Nichirei is conducting more thorough operations management of the boilers that create the steam used in
its food processing equipment.

■ Initiatives in Retail Stores and Customer-related Areas
Some Sales Proceeds Support Forest Preservation

Nichirei Foods: Good for lunches! Good for the forest! Program (https://www.nichirei.co.jp/english/csr/environment/action/sales/index.html)■ Activities of Industry Organizations
As part of its activities to avert climate change, the Nichirei Group is a member of industry organizations, and collaborates in those organizations’measures for creating a low-carbon society. Nichirei and Nichirei Foods are full members of the Japan Frozen Food Association, and Nichirei Logistics
Group Inc. and the main subsidiaries of the Nichirei Logistics Group are members of the Japan Association of Refrigerated Warehouses.
合計
24

Nichirei Group CSR Report 2018

Environmental Initiatives

Reduce Environmental Impact

Initiatives for Water Resource Conservation
Basic CSR Policy
Established as an environmental initiative, the Nichirei Group’s Environmental Policy includes themes of promoting sustainable recycling and living
in symbiosis with nature. Use of water is an important element that is closely related to these themes.
Water resources are extremely important in aspects of the processed foods business, namely, in the development of farm produce and meatand poultry products, the manufacture of prepared frozen foods, and in sanitation maintenance and control during manufacturing. Water is also
necessary in the refrigerated logistics business, such as in the operation of water-cooled refrigeration equipment.
As part of its medium-term environmental targets (for FY17/3–FY19/3), the Group formulated the following behavioral target, with a focus
on its food factories in Japan: “In consideration of the environmental conditions surrounding water in each community, the Group engages inwater resource conservation through efficient water usage aimed at sustainable water usage.” By properly managing water use and drainage,
the Group will maintain efforts for sustainable water usage and conservation, while gauging the impact of its business activities on biodiversity.

Management System
Regarding water resources used in business, the volumes of water used and wastewater discharged at worksites in Japan are included in theGroup’s CSR Report for external publication. These figures, along with other details of the CSR Report, are approved by management and othermembers of the Group Environmental Protection Committee at its first meeting for the fiscal year which is held in May.
Forest conservation activities leading to the preservation of water resources are publicized internally and externally via the Group’s website
and intranet. Hands-on environmental education programs for employees are also conducted at the forests receiving support, designed to raise
employee awareness for the environment.
Environmental Protection Committees, Group Environmental Protection Committee(https://www.nichirei.co.jp/english/csr/environment/system.html)

Initiatives for Fiscal 2017 (FY18/3)
In terms of water-related initiatives associated with

Water Usagebusiness activities, in addition to water-saving efforts at(1,000 m3)

its food factories and distribution centers, the Group is

5,000

raising employee awareness such as by displaying

4,000

posters. At worksites in Japan, the Group keeps trackand manages consumption of water and quality of

3,000

wastewater through regular monitoring in compliance

2,000with various laws and regulations. Forest conservation
activities have also been conducted, leading to theconservation of biodiversity through protecting andcaring for water.

1,000■ Clean water ■ Industrial water ■ Groundwater
3,939
1,975

3,781

4,033

3,931

3,997

1,845

1,770

1,906

853

877

797

1,867

655

638

1,309

1,276

1,336

1,284

1,293

2013

2014

2015

2016

2017

0

(FY)

Please refer to the following websites for informationon the Group’s main initiatives.
Nichirei Foods: Good for lunches! Good for the forest! Program(https://www.nichirei.co.jp/english/csr/environment/action/sales/index.html)
Environmental management > Environmental management system > Medium-term targets and results >Group medium-term targets(https://www.nichirei.co.jp/english/csr/report/pdf/csr2018.pdf)

25

Nichirei Group CSR Report 2018

Environmental Initiatives

Reduce Environmental Impact

Initiatives for Biodiversity Conservation
Basic CSR Policy
Biodiversity Policy (https://www.nichirei.co.jp/english/csr/environment/concept.html)

Management System
As “living in symbiosis with nature” is one of the three priorities of the Nichirei Group’s Environmental Policy, the Group is committed toenvironmental conservation activities. Within its business activities, the Group actively procures sustainable materials and processed items, builds
recycling systems in collaboration with business partners and local communities, and disseminates information and conducts activities forbiodiversity conservation and environmental awareness raising at worksites and suppliers.
The initiatives are reported by each operating company’s Environmental Protection Committee and by the Group Environmental Protection
Committee, which meets three times a year. The environmental protection policies and strategies of the entire Group are then determined basedon the content and progress of these initiatives. Initiatives for biodiversity are carried out based on the formulated plans.

Initiatives for Fiscal 2017 (FY18/3)■ Collaboration with WWF Indonesia and WWF Japan
Promoting Biodiversity Conservation in North Kalimantan through the More Than
Decade-long Forest of Life ProjectIn the province of North Kalimantan, on the Indonesian island of Borneo, the natural environment is facing destruction from the expansion ofplantations, afforestation, and shrimp farming. The rapid increase in the number of shrimp farms in coastal areas has led to the successive fellingof forests and mangroves, and the rapid environmental changes are threatening valuable wildlife species with extinction.
In 2006, responding to concerns over the loss of mangroves in North Kalimantan, Nichirei Fresh initiated the Forest of Life Project in cooperation
with its local supplier, PT. Mustika Minanusa Aurora (MMA) and the city of Tarakan, on Tarakan Island. The project assists in planting efforts andbiodiversity conservation, by selling shrimp cultivated traditionally without using formula feed or electricity, and donating a portion of the proceeds
to MMA’s Mangrove Foundation. In partnership with WWF Indonesia and WWF Japan, Nichirei Fresh is currently promoting activities improving
aquaculture as part of the WWF North Kalimantan Sea and Forest Conservation Project. Over a 10-year period, trees have been planted acrossan area stretching 302 hectares in an effort to restore mangrove forests. This has resulted in an increase in wildlife, including small birds, crabs
and small fish, and even proboscis monkeys introduced from outside the region have begun breeding naturally. Due to these activities, a portionof MMA’s traditional cultivation ponds became the first in Indonesia to receive ASC certification for black tiger shrimp in August 2017.

©WWF-ID M. BUDI Santosa

North Kalimantan
About half of the island’s forest
has been lost over the past 50 years

Shrimp that have grown big

Regeneration of mangrove
trees

Please refer to the following website for further details.
Nichirei Fresh Forest of Life Project (https://www.nichireifresh.co.jp/inochinomori/) (Only available in Japanese)■ Some Sales Proceeds Support Forest Preservation
Nichirei Foods: Good for Lunches! Good for the Forest! Program
Nichirei’s CSR activities include the purchase of forest credits to support forest preservation activities.
In gratitude for the earth’s abundance, which provides the ingredients for its products, Nichirei Foods runs a program to protect and develop
forests. As of March of 2014, part of the proceeds of the program—called Good for Lunches! Good for the forest!—go for the purchase of CO2
credits. As of July 1, 2018, the forest conservation activities had supported a total area of 6,058,000 m2 (equivalent to about 130 Tokyo Domes).
Nichirei Foods: Good for lunches! Good for the forest! Program(https://www.nichirei.co.jp/english/csr/environment/action/sales/index.html)
26

Nichirei Group CSR Report 2018

Environmental Initiatives

Reduce Environmental Impact■ Environmental Research & Protection, Biodiversity Conservation in Fukushima Prefecture’s
Urabandai Area
Nichirei owns land near Lake Hibara in Fukushima Prefecture’s Urabandai region, and the company
supports research on the natural environment in the surrounding areas and environmental and biodiversity
conservation based on that research. Following the 1888 eruption of Mount Bandai, all vegetation
disappeared in the Urabandai area, but with the passing of more than 125 years, one can see returning
vegetation: red pine forests, white willows, reeded wetlands, and aquatic plant clusters in marshlands.
The red pine forests continue to spread, having been planted in the Urabandai tablelands by people whowant to see the return of greenery in the area. But the company’s land, as yet unforested, provides anacademically valuable area for observing virgin nature as it transitions.
Nichirei has supported the research activities carried out, since FY12/3, in the Urabandai area by theWater quality surveys in
the Urabandai area wetlands

Natural Symbiosis and Regeneration Department of the Practical Education Promotion Center’s Research
Division at the Fukushima University Graduate School of Symbiotic Systems Sciences. Since FY14/3, thecompany has been supporting the Fukushima University Graduate School of Symbiotic Systems Sciences
Research Division’s project, to determine research models for the preservation of natural environment intransition as a natural heritage site, namely, research on humans and the natural environment(preservation of biodiversity) in Bandai’s Asahi National park. This is not limited to company land. The
results of a wide variety of research—including that on plants and insects in lakes and swamps in the
Urabandai area, as well as an analysis of sediment in the bed of Lake Inawashiro in the Inawashiro

The Himeshiro dragonfly: a new species

area—has enabled Nichirei to confirm that several species are endangered, and to learn the partial history of the formation of Lake Inawashiro.
Further, the rarity of the natural environment in these areas is becoming increasingly apparent as, for example, when a dragonfly was found withcharacteristics that are vastly different to those known today and which has a high probability of being a new species.
During FY18/3, for the purpose of considering future initiatives on lands owned by the company, Nichirei checked on the conditions of theselands, led by a professor from Fukushima University. The check revealed a particularly rich variety of dragonflies and a good water environment.
In addition, the company donates to the Sparkling Water Bandai Mizumirai Fund (Inawashiro Lake/Urabandai Lake Aquatic Environment
Conservation Measures Association), which promotes aquatic environment conservation in Lake Inawashiro and the Lake Urabandai basin. This
fund disseminates information about the association’s activities, and seeks to pass along the lake Inawashiro and Urabandai wetland areas tofuture generations in their pristine condition by expanding the circle of understanding and support.

■ Activities to Protect the Endangered Cypripedium
The cypripedium rock orchid, designated an endangered species and once native to Nagano Prefecture’s
Fujimi area, has seen a significantly decreased presence in its native habitat due to over-harvesting, damage
caused by wild animals such as deer, and the impact of climate change. This caused alarm among Fujimi
residents, and lead to the earlier-mentioned Fujimi Cypripedium Restoration Conference.
The Nichirei Group has been part of these activities from the start and, as a result of biotechnologicalapplications, had increased the number of plants to around 30,000 by FY12/3. Members of the Groupand the restoration conference painstakingly grew orchids from seeds. Six years after the seeds had beensown, the orchids finally bloomed in mid-May 2014, and have continued to do so through to FY19/3.
Having overcome the barrier of having the orchid flower for the first time indicates that there is apossibility that the initiatives so far undertaken to restore the cypripedium will expand. It seems that major

A cypripedium in bloom

impetus has been provided for other protection activities, and that the Nichirei Group will continue to protect the cypripedium.

27

Nichirei Group CSR Report 2018

Environmental Initiatives

Reduce Environmental Impact

Emissions into the Atmosphere
Management System
The Nichirei Group manages and stores PRTR substances and PCBs (polychlorinated biphenyls) in accordance with statutory standards for the
management of chemical substances. Furthermore, during fiscal 2017 (FY18/3), there were no environmental accidents or violations of laws or
regulations that could have a material impact on the environment.

Initiatives for Fiscal 2017 (FY18/3)■ Reduction of NOx, SOx, and PM Emissions
SOx Emissions

Nitrogen oxide (NOx) and sulfur oxide (SOx) are produced when fuel oil
and gas are burned in food factory boilers. Through proper facility(Tons)

management at its factories, Nichirei is complying with emissions

10

standards stipulated by law and aiming for an overall reduction in8

emissions volume. The Nichirei Logistics Group is promoting increased
logistical efficiency through joint shipping and modal shifts making use

87

6

of railways and ferries. The Group is making progress on the reductionof NOx and particulate matter (PM) emissions by using exhaust

5

4

4

4

2016

2017

regulation-compliant vehicles, conducting proper vehicle maintenance,2

and promoting such initiatives as eco-driving. Furthermore, there are noemissions from the Nichirei Group’s business corresponding to the0volatile organic compound (VOC) emission standards.

2013

2014

2015

(FY)

* Facilities where measurements of smoke and soot are taken.
Not including emissions derived from vehicles.

■ Use and Management of CFCs
Chlorofluorocarbons (CFCs) are said to be among the substances destroying the ozone layer. Their production is being phased out, andmanagement regulations have been put into effect in sequences, starting with freon, which is the most destructive of the ozone layer.
The Nichirei Group uses freon as a refrigerant in the cooling facilities at its food plants and logistics centers. Although appropriate equipment
management ensures that the refrigerant, which circulates within sealed cooling equipment, does not leak, the Nichirei Group disposes of it asrequired by law when major equipment repairs are carried out.
Meanwhile, the fact that freon is one of the gases that causes global warming has also become an issue. Since the CO2 of the energy sources
used for cooling equipment are also linked to global warming, the Group is determining the refrigerant it prefers in new equipment based on its
energy-saving properties.
During FY17/3, Nichirei Foods installed freezing facilities which use natural refrigerants at its Shiroishi Factory. Part of the cost of installingthe new freezing facilities was subsidized under the Ministry of the Environment’s CO2 emission reduction business expense subsidy. Furthermore,
the basic policy of the Nichirei Logistics Group is to select natural refrigerants when building new cold storage facilities or when extending
existing facilities. It is also promoting a switch from freezing facilities that use CFCs to freezing facilities that use natural refrigerants for all its
other existing facilities.
Use of natural refrigerants (https://www.nichirei.co.jp/english/csr/environment/action/factory/center.html#02)

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Nichirei Group CSR Report 2018

Environmental Initiatives

Reduce Environmental Impact

Management of Wastewater, Waste Matter, andChemical Substances
Basic Philosophy
Established as an environmental initiative, the Nichirei Group’s Environmental Policy includes a theme of promoting sustainable recycling. The
Group recognizes that corporate business activities have a considerable impact on the natural environment. Emitting pollutants and using chemicals
through business activities has an effect on the air and soil, and expanding business activities results in more waste being generated and a greater
effect on valuable resources. The Group’s business, in particular, relies heavily on natural ecosystems for the procurement of ingredients. Any lossof these ecosystems would be a significant business risk, and in addition, the generation of food waste is a major challenge.
Recognizing the issues outlined above, the Group is making the best use of limited global resources in cooperation with its suppliers, partners
companies and consumers, and in addition, through its business activities, is promoting reductions of waste and pollutants as well as the reuse
and recycling of resources. The Group is also helping build recycling-oriented social systems by procuring recyclable resources and working todevelop associated mechanisms.
Two medium-term environmental targets adopted by the Group are to maintain a waste recycling rate of at least 99% at its food factories
and distribution centers, and to reduce residual animal and plant material at its food factories in Japan.
The Nichirei Group’s approach to environmental conservation (https://www.nichirei.co.jp/english/csr/environment/concept.html)

Management System
Environmental management system (https://www.nichirei.co.jp/english/csr/environment/system.html)

Initiatives for Fiscal 2017 (FY18/3)
The amount of waste discharged outside worksites in FY18/3 was 45,200 tons, and the recycling rate was 99.5%. Looking at waste destined forfinal disposal, in some cases, depending on the district, waste paper and other types of waste are simply incinerated at processing plants catering
for general, business-based waste. In other cases, depending on the type and volume of waste, recyclers cannot be found. In any case, the Groupwill work on further reductions, including by controlling the amount of waste produced. During FY18/3, the Group emitted 9 kg of speciallycontrolled industrial waste (such as flammable waste oil, strong acid/strong alkali and other waste classified separately from industrial waste
because of hazardous or toxic properties).
Nichirei Group Discharged Waste Discharged Outside
Worksites and Recycling Rate

Nichirei Group Wastewater and Drainage Load

■ Recycling rate ■ Amount of final waste disposal ● Recycling rate
(Thousands of tons)

99.6

60
50
40

99.6

0.2

40.4

45.2

41.9

0.2

99.5
45.2
0.2

0.2

0.1

30
20

40.5

40.3

41.7

45.0

45.0

0

100

2,500

98

2,000

2014

2015

2016

2017

(Tons)

300

2,290

2,295

851

841

1,439

1,453

96

1,500

94

1,000

92

500

50

52

0

13

16

0
2013

■Public water areas (rivers, etc.) ■Sewer system● BOD ● COD

3,000

（%）

99.7

99.6
40.7

(1,000 m3)

(FY)

2013

2,444

2,525

2,458

913

948

945

250
200
150

2014

1,530

26
19

2015

1,577

1,514

46

48

24

22

2016

2017

100
50
0

(FY)

■ Promoting Integrated Crop-livestock Production
The food residue and chicken guano received from factories and food material production facilities can be recycled as feed and fertilizer to reduce
waste and make effective use of resources.
The Nichirei Group, which uses feed and fertilizer recycled from food products to produce food, aims to establish a food cycle involving
livestock and humans. At Nichirei Fresh Farm Inc., set up as a poultry farm for the production of purebred domestic Japanese chickens, the Groupis collaborating with local residents to build a regional recycling production system using chicken guano.

■ Project for Recycling-based Production via Junwakei Chickens
At the Hirono facility operated by Nichirei Fresh Farm, Junwakei chicken droppings are processed into organic fertilizer, which is used to produce
feed stock rice for specialized Junwakei chicken feed. Rice for the chicken feed is produced by partner farmers in the towns of Karumai and Hirono
in Iwate Prefecture, in cooperation with JA Shiniwate. Much of this rice is grown using rice paddies lying fallow because of rice production adjustments.
The recycling-based production cycle of Junwakei chickens thus contributes sustainably to regeneration of the local farming industry.
Project for recycling-based production via Junwakei chickens (https://www.nichirei.co.jp/english/csr/environment/action/locality/index.html)
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Nichirei Group CSR Report 2018

Environmental Initiatives

Reduce Environmental Impact■ Fertilizer, Feed Made from Factory Food Residue
To reduce waste generated at our production facilities, Nichirei Foods is undertaking various initiatives. These include production management,
initiatives to prevent problems, and the recycling of processing residue, such as raw ingredients not turned into products.
Processing residue is disposed of with in-house treatment machinery at our Funabashi and Shiroishi plants, and recycled for use as fertilizer
and feed. Our other factories entrust the processing of residues to recycling companies that turn the leftovers into fertilizer and animal feed. The
Group plans to continue reducing the amount of waste generated by setting target values, while making the most effective use of processing
what residue is inevitably produced.

■ Factory Wastewater Released Only after Having Been Cleaned Using Special Equipment
The water used at food factories becomes wastewater containing food-related organic matter, detergents, and disinfectants. The Nichirei Groupcleans its factory wastewater using disposal equipment and only releases it outside the factory once it complies with emissions standards stipulated
by law.

■ Management of Pollutant Release and Transfer Register (PRTR) Substances
In FY18/3, approximately 1 ton of chlorodifluoromethane (R-22), used as a refrigerant, was released at one of the Nichirei Group’s worksites. The
Group reported this to the Japanese government since the amount exceeded the annual legal limit of 1 ton, as specified in the Pollutant Release
and Transfer Register*. Since this breach, the Group has been taking more steps to reduce the amount of chemical substances it releases.
* The laws concerning the Pollutant Release and Transfer Register refer to the collection and publication of data related to the release into the environment of chemicals, fromany source, which could possibly adversely affect the lives, growth, or development of humans, animals, or plants.

■ Management of PCBs
Polychlorinated biphenyls (PCBs), a group of man-made compounds, were previously used as insulating oil in transformers, but their use wasbanned in the 1970s, after their toxicity became apparent. In Japan, equipment that has been confirmed to contain PCBs is being appropriately
stored in compliance with standards set by law. Currently, disposal is being carried out systematically, based on the capacity of the nation’s fivegovernment-run PCB disposal plants. Fourteen transformers collected from the Nichirei Group in FY18/3 have been disposed of at a one of thegovernment plants.

■ Management of Asbestos
The asbestos that was found to have been sprayed on the underside of the roof, and which had the possibility of spreading, was removed anddisposed of during an inspection in FY06/3. In addition, when demolishing office buildings that have been closed, the Nichirei Group does anothersurvey and takes legally compliant and appropriate steps to dispose of any building materials containing asbestos.

■ Management of Contaminated Soil
In addition to fulfilling the appropriate disclosure requirements when selling, buying, or renting land, the Nichirei Group does evaluations of soil
contamination and carries out the appropriate management.
During FY18/3, a soil analysis was conducted at the Funabashi Plant operated by Nichirei Foods. The possibility of soil contamination wasassessed as extremely low.

30

Nichirei Group CSR Report 2018

Environmental Initiatives

Reduce Environmental Impact

Initiatives in Products and Services
Basic Philosophy
Committed to manufacturing and service solutions that are conscious of minimizing environmental impact throughout the entire supply chain,
the Nichirei Group will contribute to reducing the environmental impact of society as a whole.
As a food-related corporate group that is greatly affected by climate change, the Group is working on reducing CO2 emissions in its products.
The Group is also putting effort into controlling its generation of waste and reusing and recycling resources so that the earth’s limited resources
can be used continuously as much as possible. For bioresources that the Group is unable to use efficiently and economically or is unable to use
completely, it is focusing on reusing these bounties of nature in animal feed or fertilizer and returning them to nature.

Management System
Environmental management system (https://www.nichirei.co.jp/english/csr/environment/system.html)

Initiatives for Fiscal 2017 (FY18/3)■ Suppression of Methane Gas Emissions by Cattle (Nichirei Fresh)
Suppression of Methane Gas Emissions by Cattle (Nichirei Fresh)(https://www.nichirei.co.jp/english/csr/environment/action/locality/index.html)■ Reevaluating Packaging and Containers
Nichirei Foods has been able to reduce waste by reevaluating its packaging and containers.
With some products, doing away with trays ultimately made it easier to store the product.
This consequently led to both a reduction in petroleum-derived plastic materials and areduction in CO2 emissions during manufacturing.
Nichirei Foods has also exercised ingenuity in merchandising, for instance, shortening
both ends of packaging while maintaining its strength has led to a reduction in the use ofplastic materials, and dispensing with the aluminum coating on the inside of packaging has
made it easier to recycle.
Ultrasonic sealing of plastic film packaging

Some sales proceeds support forest preservation(https://www.nichirei.co.jp/english/csr/environment/action/sales/index.html)
Reducing waste by reevaluating containers, packaging(https://www.nichirei.co.jp/english/csr/environment/action/sales/index.html)
Forest of Life Project (https://www.nichirei.co.jp/english/csr/environment/action/locality/index.html#project01)

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Nichirei Group CSR Report 2018

Environmental Initiatives

Reduce Environmental Impact

Processing Environmental Complaints
Basic Philosophy
Based on the management principle below, each Nichirei Group company communicates with local business stakeholders, and strives to deal
appropriately with any environment-related complaints that are ascribable to the company.

Excerpt from Management Principles: Society
The Group engages with local communities as a corporate citizen, and aims to contribute to the development of society through its businessactivities. As part of its role, the Group provides ongoing assistance for people with disabilities, as well as participates in, and supports, culturalactivities, and other community events.

Management System
The Group accepts a range of inquiries via telephone, letter, and online points of contact.
Inquiries (https://www.nichirei.co.jp/english/inquire/)
In addition to covering areas such as organizational management and business processing, Nichirei’s Corporate Internal Audit Division also performs
Group management audits on compliance with environment-related law and important environmental protection matters. During an audit,
circumstances surrounding the worksite and relationships with neighbors are also checked. Complaints, opinions, and inquiries directed to each
worksite, as well as details of the response taken are shared and reviewed within their respective operating companies.

32

Nichirei Group CSR Report 2018

For the Benefit of Society

Create New Value for Customers

Consumer-related Issues
Basic Philosophy
The Nichirei Group strives to create new value for customers through its business activities and help communities solve the issues they face.
As a company engaged in food-related businesses, Nichirei aims to contribute to people’s health through improving access to better nutrition
and a number of other initiatives. For example, Nichirei Foods develops and sells wellness products that promote health as well as organic frozen
vegetables, and Nichirei Fresh places emphasis on the feed and livestock environment for the meat it sells. In addition, Nichirei Biosciences provides
the public with academic and technical information related to immunostaining and has made it available to health professionals through an
information website, allowing it to contribute to a healthy society through its businesses.

Initiatives for Fiscal 2017 (FY18/3)■ Initiatives That Promote Health
Nichirei Foods’ Initiatives
Nichirei Foods does not only pursue great taste, but also sells health management foods through its official online shop that carefully monitor

the intake amount of calories, sugar, salt, fat, protein, and so on for those who are on diets, trying to control their caloric intake, or affected bydiabetes. It is working on modifying its website with guidance from national registered dieticians so that customers are able to choose menu
items according to their health needs.
In addition, it is selling organic frozen health products as part of the Genkibatake-no-Organic series that use organic ingredients raised on
farms without the use of chemically synthesized pesticides or fertilizer.
Initiatives at Nichirei Fresh
At Nichirei Fresh, emphasis is placed on the feed and livestock environment in meat production. With most chickens that are reared for meat,
antibiotics, synthetic antibacterial agents, and other chemicals are used to treat illnesses as well as to prevent disease in factory farm conditions
and promote growth. However, with Nichirei Fresh’s FA Chicken, while vaccines are used, no antibiotics or synthetic antibacterial agents are used
at all throughout the entirety of the rearing process. To pay attention to the rearing environment and boost the chickens’ natural immunity andraise their resistance to disease, a feeding method is employed that utilizes lactic acid bacteria and other attenuated vaccines and plant-based
natural medicines (such as traditional Chinese medicine).
In addition, to address the issue of people not getting sufficient omega-3 fatty acids from current dietary habits, Nichirei Fresh developed theOmega Balance meat series using special feed and original rearing methods to allow a higher intake of omega-3 fatty acids than typical meat.
Nichirei Fresh places emphasis on its feed and livestock rearing methods, and it strives to help make the livestock industry better for people,
the animals, and the environment.
Nichirei Biosciences’ Initiatives
At Nichirei Biosciences, an information website is managed under the supervision of doctors with the objective of providing the latest
immunostaining-related information to those engaged in pathological examinations at hospitals and such, as well as those at universities andresearch institutions involved in pathological research for basic and clinical medicine.
Men-eki Senshoku Tamatebako (Immunostaining) (https://www.nichirei.co.jp/bio/tamatebako/index.html) (Only available in Japanese)■ Response to Food Allergies
There are 27 foods listed as allergy triggers in Japan. Of these, the Consumer Affairs Agency requires that seven (shrimp, crab, wheat, buckwheat,eggs, milk, peanuts) be displayed on packaging due to the frequency and seriousness of the allergic reactions they cause.
The Nichirei Group both checks the raw ingredients it uses and assesses the likelihood of contamination during manufacture in order toaccurately identify the food allergens on packaging, in compliance with the nation’s food labeling laws. The Group has made every effort toitemize the food allergens contained in frozen foods for home use that are handled by Nichirei Foods.
Product Responsibility (https://www.nichirei.co.jp/english/csr/report/pdf/csr2018.pdf)

33

Nichirei Group CSR Report 2018

For the Benefit of Society

Provide Safe Products and Services

Product Responsibility
Basic Philosophy
The Nichirei Group has put in place a fundamental policy for quality assurance, based on the Group’s business management philosophy. Its goals
are to ensure the quality and safety of all the Nichirei Group’s products and services—so that they will not be hazardous to the health of its
consumers—as well as to maintain and improve the standards of quality management, quality assurance, and customer satisfaction.

Fundamental Policies on Quality Assurance
1. Compliance with the requirements of laws governing food products.
2. Recognizing the needs of customers and partners regarding food safety and security, and working to better the Group’s quality
management and assurance.
3. Applying the concepts of food defense, safety and crisis management, to prevent Group products from threatening the health ofcustomers.

Fundamental Policies on Quality Assurance (https://www.nichirei.co.jp/english/safety/concept/)■ The Reasoning behind the Nichirei Group Displaying Quality Assurance on Product Packaging
Providing appropriate information to customers is essential to making them feel at ease, just like sincerely listening to their concerns.
Simply meeting the standards set by the food labeling laws is not enough to convey the true flavor that the Nichirei Group most wants toevoke.
The Nichirei Group put its heart into conveying the delicious taste of its products, while also accurately passing along the information that
customers need in an easy to understand manner.
Nichirei Foods employs various packaging strategies to help customers choose us from among the countless other brands of frozen food. In
general, the following way of thinking is applied to all product packaging that receives the N mark.
The Reasoning behind Adding the N Mark to Packaging

1. Safety information clearly given
The Nichirei Group provides allergen-related and nutritional information, in compliance with the standards prescribed by all labelinglaws. It also uses easy to understand diagrams and illustrations to convey important information concerning the cooking of its products.
2. Product origination
Customers each have their own criteria for choosing a product. The Nichirei Group uses easy to understand diagrams and drawings,
and 2D bar codes used for mobile marketing to provide essential customer information, including where an item and its ingredientswere produced, and how it should be prepared for serving.
3. Making products look appetizing
The Nichirei Group consults designers about how packaging can best convey a product’s flavor.
4. Contact information for customer inquiries
The Nichirei Group displays contact information for collecting various types of information from customers.
5. Meeting industry standards
In addition to accreditation marks, the Nichirei Group displays the information required for packaging to be sorted for appropriate
disposal or recycling.

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Nichirei Group CSR Report 2018

For the Benefit of Society

Provide Safe Products and Services

Management System■ The Nichirei Group Quality Assurance System
The Nichirei Group Quality Assurance System Diagram
Nichirei Corporation

The Nichirei Group Quality Control Regulation-based Quality Assurance

Board of Directors
Approval of Regulations

・Establishment of the Nichirei Group Quality Control Regulations
・Discuss the policies and direction of the Group Quality Assurance and report to the Board of Directors.
Chairman
Representative Director and President
Committee Related executives, related department chiefs

Report

The Group Quality Assurance Committee
Application of Regulations

Reports and Proposals

Quality Assurance Division

・Regarding operating companies’ products and services, abide by the Nichirei Group Quality Control Regulations,and carry out internal auditing and monitoring inspections to confirm the effectiveness of the management system.
・Plan and draft the policies and direction of the Group Quality Assurance and submit a proposal to the Group Quality
Assurance Committee.

Operating Company

Operating Company Quality Control Regulation-based Quality Assurance

Board of Directors
Approval of Regulations

ReportGroup Quality Assurance Committee
Application of Regulations

Reports and Proposals

Quality Control System/Divisions

・Establishment of Quality Control Regulations for each operating company
・Discuss the direction, measures, and so on related to the Quality Assurance for each operating company and reportto the Board of Directors.
Chairman
Each operating company's Representative Director and President
Committee Each operating company's related executives, related department chiefs
・Regarding products and services, abide by the operating company's Quality Control Regulations and implement
quality control.
・Plan and draft the policies and direction related to the Quality Assurance of each operating company and submit a
proposal to the Quality Assurance Committee.

● Product Quality Assurance
Rules concerning
product development

Product development
Selection of
packaging materials

Selection of raw
ingredients

Rearing/cultivationof fisheries andagricultural products

Rules concerning theselection of raw
ingredients/packaging

Sourcing of
remaining raw
ingredientsRules concerningcompilation of foodlabeling information

Receipt of raw
ingredients

Compilation offood labelinginformation

Storage of raw
ingredients

Processing
Receipt of
packagingmaterials

Freezing

Storage of
packagingmaterials

Packaging

Rules concerning
the sourcing/
rearing/cultivationof raw ingredientsRules concerning
management of foodfactory facilities, raw
ingredients/packaging,factory hygiene,
products, and batch
releaseBatch release

Distribution/
storage

Rules concerning
distribution/storageof foods

Customer

Rules concerning
customer service andproduct returns

The Nichirei Group offers a variety of products and services. Each operating company has established rules and standards based on thecharacteristics of the products and services it provides.
The establishment of these rules and standards is based on the hazard analysis and critical control points (HACCP) system. The Nichirei Group’ssystematic preventative approach to food safety emphasizes the biological, chemical, and physical hazards in production processes and the needfor a quality management system. This philosophy generally applies to all food products, and initiatives proceed according to its rules.
The Nichirei Group is working to increase the degree of food safety that it can ensure, through initiatives designed to protect food from
intentional tainting that cannot be avoided using food safety initiatives, and crisis management initiatives, which allow accurate information to
be revealed quickly in the event of an accident/incident leading to health hazards. It is also working to increase the degree of food safety that it
can ensure, and expand its risk communication abilities during emergencies.
The Nichirei Group Quality Assurance System (https://www.nichirei.co.jp/english/safety/system.html)
35

Nichirei Group CSR Report 2018

For the Benefit of Society

Provide Safe Products and Services

Service Quality Assurance
Nichirei Logistics Group’s new logistics center is outfitted with the most cutting-edge equipment, including advanced security functionality anda seismic isolation structure. In addition, in regard to quality, traceability functionality, inventory management functionality, and more along withtemperature control that combines the Group’s know-how and technology have allowed it to realize advanced logistics quality. When it comesto a logistics network, the approximately 4,000 trucks, including the Nichirei Group’s own, that provide transportation and delivery all over thecountry every day, are the backbone of its logistics network, and collaborations with freight companies are essential. For this reason, the Nichirei
Group established a cooperative organization with the freight companies and pursues initiatives such as driver contests and a system of training
and awards to improve safety and quality, thereby establishing a close collaborative relationship.

■ Certification Status
Certification

HACCP*1 (food sanitation control system)

Operating Company

Rate of Certification (number of businesses
with certification/number of consolidated
subsidiary business establishments in Japan(food factories, logistics centers, etc.))

Nichirei Foods

13/15

Nichirei Fresh

6/7*5

Nichirei Foods

13/15

Nichirei Fresh

8/8

Nichirei Logistics Group

105/112

Nichirei Foods

13/15

Nichirei Fresh

6/8

Nichirei Logistics Group

2/112

ISO 14001 (Environmental Management System)

Nichirei Foods

11/15

ISO 13485 (Medical Devices/In Vitro Diagnostic Drugs)

Nichirei Biosciences

2/2

ISO 9001 (Quality Management System)FSSC 22000*2, ISO 22000*3, SQF*4(food safety management system)(As of September 30, 2018)*1 HACCP: Developed in the United States during the 1960s for the aerospace industry, the HACCP system is an international management method for food production thataims to prevent hazards during the manufacturing process by analyzing hazards and establishing important control points.
*2 FSSC 22000: An international management system related to food safety that is based on ISO 22000.
*3 ISO 22000: An international standard related to food safety management systems for reducing food safety risks that is based on the HACCP food sanitation control techniques.
*4 SQF (Safe Quality Food) certification provides assurance that the product being purchased meets strict international food safety and quality standards such as HACCP. In
countries outside of Europe, it is the only program recognized by the Global Food Safety Initiative (GFSI).
*5 Target business establishments excluding Nichirei Fresh Farm・Target business establishments: Consolidated subsidiary business establishments in Japan (food factories, logistics centers, etc.)

Table of Contents/Editorial Policy > Target Business Establishments (https://www.nichirei.co.jp/english/csr/report/pdf/csr2018.pdf)■ Food Defense Initiatives
Since the Nichirei Group believes that the best way to protect food is by controlling people, it emphasizes people management. It values communication between people, and in addition to restricting access to areas where food is handled to authorized individuals, the Nichirei Group has madeit possible to determine the when, who, and where of such individuals at all times. It has created a system to protect its food that is based on the
distinctive characteristics of each product, and which allows follow-up investigations to be conducted should problems arise. The Nichirei Groupis enhancing its face recognition system and other security measures at its logistics facilities as well.

■ Food Crisis Management Initiatives
The Nichirei Group has put in place a response system for use in the event that there is an incident or accident, involving the food it provides, thatmight lead to health hazards. The system is designed to confirm quickly the facts, should an incident lead to health hazards; to determine how
best to respond to company and outside individuals and the media; to investigate the cause of the incident so that a recurrence might be prevented;
and to speedily release relevant information.

■ Establishment of Quality Control Regulations
Nichirei Corporation’s Quality Assurance Division has established rules and standards for quality control and quality assurance and performs
internal audits and monitoring inspections based on quality management standards to ensure that the Group’s quality management system isfunctioning effectively.
Each operating company’s Quality Assurance Division performs quality inspections of its own products and services and reports and shares
its implementation status with the Quality Assurance Committee and the Group Quality Assurance Committee, which assists with the further
revision and enhancement of its quality assurance system.

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Nichirei Group CSR Report 2018

For the Benefit of Society

Provide Safe Products and Services■ Management of Raw Ingredients
Nichirei Foods researches the materials comprising the raw ingredients in three stages, and manages the distribution percentages, quality/microbial
specifications, manufacturing process, and allergens contained. Raw ingredient suppliers are required to submit information on each ingredientin the form of ingredient quality specifications. This is placed in its database and used as the basis for nutritional information and to answer
customer questions. When the Nichirei Group uses a new raw ingredient, it first evaluates the production facilities, confirms the ingredient quality,
and checks samples. An overall assessment follows and, even after an ingredient has been approved for use, the Group continues to do factory
evaluations, inspections, and factory improvements, to further enhance the ingredient. By checking the quality of an ingredient when it takes
delivery, the Nichirei Group is able to verify the effect of its factory evaluations and inspections.
The Evaluation Flow for Ingredient Quality Specifications

Raw ingredientsuppliers
Creation ofingredientqualityspecifications

Procurement
Division
Verification

Development
Division
OK

Verification

NG
Revision ofingredientqualityspecifications

Quality
Assurance
Division
OK

Verification

NG

OK

Data base registration

NG

If a failing mark is given in any verification division,
this cycle continues until completion

Trace-back System (narrow down production site of frozen vegetables from trace code on product packaging)
What the Trace Code Tells You
The trace code allows one to trace a product back to the place of cultivation, as indicated in the diagram below. Trace codes on Nichirei Foods’
frozen vegetables allow the cultivation management and production conditions in the factory to be traced. Nichirei Foods is using the trace codes
to conduct ongoing improvements based on its discussions with local producers, in order to better respond to customers’ needs.
The information displayed in this row can be used to
trace the following:

2015.6.30 / GM b

● Date when the product was packaged

Best-by date (Final packaging)factory code
Packaging date

● The factory at which it was package● The time the product was packaged

01C 04 GM 1 JH
ArrivedMarch 1

The information displayed in this row can be used to
trace the following:

Truck No. 04
Farm code(Unfinished product) Production
factory codeline number● The farm at which it was harvested● The truck and driver used to transport the harvested product● The facility at which pre-processing was done
● When the product arrived at the pre-processing factory● At which production line pre-processing was done

Cultivation Management
The farms, in China and Thailand, where frozen vegetables are produced for Nichirei Foods have been selected based on their ability to meet
Nichirei Foods’ environmental standards (in terms of soil, water quality, etc.) and agro-chemical management requirements. A farm advisor, fromthe Group’s frozen vegetable production facilities, is regularly sent to these farms to do on-the-spot checks of cultivation conditions and confirm
that they are being adequately managed.
Production Management
Nichirei Foods provides quality-management guidance for the contract factories that produce its frozen vegetables. Records are kept detailingthe importation, selection, cleansing, processing, freezing, packaging, inspection, and shipping of the vegetables cultivated. In addition, theNichirei Group makes sure with local inspection agencies that there are no problems regarding residual agrochemicals during pre-processing.
During shipping it also checks that there are no problems with the production facility inspection divisions that have received technical training
from Nichirei. Furthermore, the Nichirei Food Safety Center systematically inspects the hygiene and residual agrochemicals of domestic produce
and certifies their safety at the same time as confirming the proper functioning of the local systems.

37

Nichirei Group CSR Report 2018

For the Benefit of Society

Provide Safe Products and Services

Initiatives for Fiscal 2017 (FY18/3)■ Initiatives for Communication with Customers
Besides providing products with reliable quality, providing relevant information to customers is Nichirei Foods’ top priority. Nichirei Foods has
eliminated excessive advertising on its packaging and works to provide relevant information.
In addition, through the activities of its Customer Support Center, the Nichirei Group uses its customers’ opinions to provide feedback to worksites and improve quality.
Adding the N Mark to Packaging
A lot of information is concentrated on packaging. The information in the all-in-one displays on the side or back of packaging cannot afford tobe mistaken, and thus undergoes stringent double-checking to ensure that all relevant legal stipulations are met. The name and place of originof raw ingredients used in products are identified on the packaging, based on the information provided by the producers. Further, since thebest-by date and lot number are displayed, it is possible to look up when and where a product was made, and which ingredients were used.
Given the Group’s belief that a customer’s ability to communicate with lit is of paramount importance, packaging clearly displays a toll free number
for enquiries.

Text is written using an easily legible universal font andcolor universal design, a system developed for people withvarious types of color vision.
This it complements with icons and illustrations.
Icon

The Japan Frozen Food Association
accreditation markDisplayed with intuitive illustrations
Cooking methods

Nutritional information

Back
side

Information identifying packaging materials

27品目中All-in-one display
A summary of all the information(raw ingredients, quantity, etc.)
necessary for product selection

Name ofproduction facility

Toll free number for enquiries

Allergy informationis conveyed in
intuitively
understandable
illustrations

2D bar-code

In order to better provide the information
customers want, a 2D bar-code can be found on the
packaging that allows customers to check theorigins of the raw ingredients and other productinformation, as well as the production facilities on
the Group’s mobile site.
Part of the proceeds from sales of the Good
for Lunches! line goes toward supporting
forest preservation-related activities.

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Nichirei Group CSR Report 2018

For the Benefit of Society

Provide Safe Products and Services● Main Laws Concerning Packaging Information

All-in-one display

Food Labeling Act, Measurement Law

Allergy information

Food Labeling Act

Nutritional information

Food Labeling Act

Information identifying packaging materials

Container Recycling Law, laws related to promoting the effective use of resources

Product marketing information

Act against Unjustifiable Premiums and Misleading Representations, prefectural regulations

In order to ensure the accuracy of information related to product safety and selection, the Nichirei Group conducts a number of checks between
the time that information displays are created and products are shipped. It also checks to make sure that nothing on the packaging can cause
misunderstanding. It is implementing display checks with these two points in mind in its examinations as well, and only those products thatpass can be manufactured.
Verification before the N Mark Is Added to Packaging
Creation・First charts with detailed breakdowns and distribution percentages, basedon the specifications of the raw ingredients and the recipes are created.
・Next, the information to be displayed on the packaging is decided.
・The checklist is based on legal requirements, industry guidelines, and facts

Nutritional facts label Per unit (22g)
EnergyProtein

Fat

Carbohydrates

Sodium42 Kcal

2.6 g

2.4 g

2.5 g

118 mg(Equivalent to 0.3 g of table salt)

the Nichirei Group has established independently (product highlights, cooking methods).
・Values derived from nutritional information (for home-use products) are also used.

Verification
・The information displayed is correct, based on distribution.

Allergens(from among 27 items)

・The information displayed meets legal, policy, and in-house standards.
・ Information about allergies, which can threaten health, is sufficient andcorrect.
・The Customer Support Center endorses the packaging of home-use products.

39

Wheat

Egg

Milk
components

Beef

Soy

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Provide Safe Products and Services

Inspections
・The Nichirei Group checks the label contents for product packaging that receives the N mark. It performs thorough checks of labelsthat are regulated by law, including allergen displays and other content directly related to health hazards.
・The Nichirei Group checks all the information from a customer’s perspective, to ensure that there will be no misunderstanding. In
particularly, it carefully checks sales pitches and other information with a bearing on product purchases to ensure there are no
exaggerations or false statements.

Display verification

Verification at the Factory: After Packaging and before Shipping
Factory・The packaging film and boxes are checked to ensure they are as stipulated.

Best-by date・Accuracy of the information printed at the factory (the best-by date, lot number, trace-back code)and printing quality (faint, smeared) are checked.
・Factory packaging is double- and triple-checked before shipping.
Printing, data checks
Conveying Accurate Product Information
In order to obtain information about raw ingredients, the Nichirei Group requires suppliers to provide detailed specifications. But, before using
these as a resource for product packaging, it runs tests to confirm they are correct. Such scrutiny of information, as is relevant to highly processed
ingredients, can require several months. In addition, it adapts to changes in laws related to food product labeling as they arise.
Examples of information on product ingredients and product areas, allergen displays(https://www.nichireifoods.co.jp/product/detail/sho_id33/) (Only available in Japanese)
Food Safety Center Initiatives (https://www.nichirei.co.jp/english/safety/action/system.html)
The initiatives of the Nichirei Foods Customer Support Center (https://www.nichirei.co.jp/english/safety/concept/foods.html)
Nichirei Foods is making various efforts to make product packaging easier to see and understand. Its efforts to make packaging that increases
visibility for everyone, including the elderly and colorblind, is one part of these efforts.
Universal Design Initiative (https://www.nichirei.co.jp/csr/report/2012/comm/comm_01.html) (Only available in Japanese)■ Reports Related to Advertisements/Publicity and Labeling
No laws were violated in the advertisements/publicity and labeling related to products and services.

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Provide Safe Products and Services■ Food Safety Center Initiatives
The Nichirei Quality Assurance Divisions Food Safety Center is the Group’s inspection and analysis arm. It verifies that the appropriate quality
assurance activities are being undertaken at operating companies. Inspectors mostly check for residual agricultural chemicals in frozen vegetables,and for veterinary drugs (such as antibiotics and synthetic antimicrobial drugs) in marine/livestock products and their processed derivatives.
Nichirei provides operating companies with feedback even if detected elements are within legally acceptable limits. This enables the companies
to assess whether appropriate steps are being taken to manage the use of agrochemicals and drugs at sites, to discover the causes, and to prevent
them from exceeding acceptable levels.
In addition, it checks for agrochemicals and veterinary drugs in over 400 items, and for radioactive substances, the Group monitors the
products and raw ingredients it handles using an NaI (TI)l scintillation spectrometer.

■ Quality Assurance Audits
Nichirei Foods performed quality audits at 31 business establishments in FY18/3. The control and management category contained eight items
and 218 checkpoints, and the facility and hygiene category contained nine items and 307 checkpoints. If an issue was discovered, instructions
for improvement were given.
In addition, starting from April 2018, the entire Group’s quality assurance system changed. Nichirei Corporation’s Quality Assurance Division
has established rules and standards for quality control and quality assurance, and it performs quality management reviews to ensure that operatingcompanies’ quality management system is functioning properly. Operating companies have changed the roles so that they abide by their own
regulations and handle factory and product inspections in an effort to achieve more efficient quality assurance.

■ Health Initiatives
As a company engaged in food-related businesses, the Nichirei Group believes that access to better nutrition is a very important part of people’s
health. Nichirei Foods develops and sells wellness products that promote health. In addition, Nichirei Biosciences provides the public with academic
and technical information related to immunostaining and has made it available to health professionals through an information website, allowing
it to contribute to a healthy society through its businesses.
Issues surrounding food safety and security (https://www.nichirei.co.jp/english/safety/subject.html)
Nichirei Foods Wellness Food Product Development/Sales (https://wellness.nichirei.co.jp/shop/default.aspx) (Only available in Japanese)
Providing an information site to health professionals (Nichirei Biosciences)(https://www.nichirei.co.jp/csr/report/2014/safety/005.html) (Only available in Japanese)■ Collaboration with Industry Organizations, etc.
The Nichirei Group actively participates in industry group activities and contributes to helping communities improve and solve the issues they facethrough proposals and recommendations/encouragement.
Nichirei and Nichirei Foods are official members of the Japan Frozen Food Association, both Nichirei Logistics Group and its main subsidiaries
are members of the Japan Association of Refrigerated Warehouses, and Nichirei is a member of the Japan Food Industry Association.
Industry Organizations (https://www.nichirei.co.jp/english/corpo/compliance.html)■ The Initiatives of the Nichirei Foods Customer Support Center
Initiatives for Quality Improvement
The Nichirei Foods Customer Support Center aims to improve customer satisfaction and corporate value through quickly and appropriately
responding to the opinions and reports of customers. In addition, Nichirei aims to provide accurate product information and a brand that is bothsafe and reliable.
Customer Satisfaction Surveys
In order to improve customer service, the Customer Support Center runs customer satisfaction (CS) surveys.
When customers make a suggestion about a product, Nichirei sends them a report form and a survey postcard, both of which it has them return.
The survey uses a five-point scale to evaluate four areas: initial impression contacted by telephone (reception response); items noted by the
respondent (on the report form); time taken to submit report (response time); and future purchasing intentions (repeat purchase). Space is also
provided for customers to include additional comments. The aggregate results are used to improve Customer Support Center services. Effortson this direction are ongoing.

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Provide Safe Products and Services● Breakdown of Customer Interactions in 2017
Breakdown of “Other” topics
Sales
Product packaging
Vending machine inquiries
Eating methods
Misunderstandings originatingwith customers
Request for informational materials
Campaigns
Commercials, advertisements,and sponsored TV programs
Sales prices
Wrong number or hung up
Other inquiries

2%
2%
2%
2%
1%

Other 17%

Production process problems
13%

Forwarding or transfer toanother department 2%

Distribution problems
6%

Nutritional information 2%
Comments and opinions 3%
Product orders
4%

1%
1%
1%

Other suggestions
13%

Enquiry68%

Date/storage methods
7%

1%
1%
3%

Eating methods
8%● Evaluation of Customer Satisfaction Reception Response

Product content/ingredients
15%
Retail store
10%●Repeat purchasing ●Reception response ●Response time ●Report form
5.0
4.8
4.6
4.4
4.2
4.0
3.8

2013

2014

2015

2016

2017

(Year)■ Product Recall Information
These are the product recalls that have occurred in the past five years.
TargetDate

July 27, 2014

Retort curry Shinjuku Curry Beef
(https://www.nichirei.co.jp/news/pdf/140727.pdf) (Only available in Japanese)

May 11, 2016

Frozen vegetables produced in America(https://www.nichirei.co.jp/news/pdf/20160511.pdf) (Only available in Japanese)■ Protection of Personal Information
In FY18/3, there were no issues related to the leaking of personal information, etc.

■ Staff Training for Quality Improvement
The following training was carried out for FY18/3.
Training

Description

Number ofPeople

Hours

Third-year employee technical training session

Smooth communication, control of production line sanitation

34 people

14 hours

Leader candidate training

Management demonstration on educating young employees and accomplishing tasks

22 people

28 hours

M1 leader training

How to discover and resolve one’s own issues with management skills,
139 people
feedback exercise on objectives management evaluations

14.5 hours

Training for obtaining
FSSC 22000 certification

Explanation of the items for the FSSC 22000 standard, cultivation ofinternal auditors, how to create HACCP-related documentation

46 hours

140 people

In FY19/3, in addition to the above training, technical training will be expanded to second-year employees as well and training conducted for line
leader candidates and production factory leaders. In addition, for FSSC 22000, training for establishing the system will be conducted.

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Sustainable Supply Chain Policy

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 Groupwill forge appropriate relationships with its suppliers and partner companies and is aiming to contribute to the vitality and development ofcommunities 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 inaccordance 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.

Nichirei Group Sustainable Supply Chain Policy (English version) (https://www.nichirei.co.jp/english/csr/supplychain/index.html)

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 andinternational 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.

■ CSR Management Discussion Meetings
The Group has been holding “CSR Management discussion meetings” since FY17/3 primarily to offer an opportunity for discussion on businessactivities 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 FY18/3, 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. The Group willcontinue to hold these meetings and promote CSR management.

■ 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 JapanCSR Consortium, for which the Caux Round Table operates a bureau.
Promoting respect for human rights across the supply chain (https://www.nichirei.co.jp/english/corpo/humanrights.html)

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Sustainable Supply Chain Policy■ 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 frompeatlands, 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. The Group is making efforts to use sustainable palm oil in its products.

Initiatives for Fiscal 2017 (FY18/3)
The Group is undertaking various supply chain management initiatives related to its business activities. For details on Group efforts, see below.
Sustainable Supply Chain Policy (https://www.nichirei.co.jp/english/csr/supplychain/index.html)■ ASC/MSC-certified Products
As of June 2018, Nichirei Fresh has two types of marine products that have obtained ASC certification*1 and 16 types of marine products thathave obtained MSC certification*2. In FY18/3, Nichirei Fresh developed herring roe Kazunoko Matsumae-Zuke and herring roe Kazunoko

Wasabi-Zuke made with MSC-certified Pacific herring (roe) with a business partner that has obtained CoC certification*3. Going forward, theGroup will continue making efforts to keep its marine products sustainable, and will continue to grow the number of ASC-certified andMSC-certified marine products.
*1 ASC certification: Marine products certified by the ASC (Aquaculture Stewardship Council) as having been cultivated in a sustainable manner*2 MSC certification: Natural marine products certified by the MSC (Marine Stewardship Council) as having been cultivated in a sustainable manner*3 CoC certification: Certification of the management of the processing and distribution processes● Nichirei Fresh Products That Have Obtained ASC/MSC Certification (as of June 2018)
Certification

ASC

Number Certified

Two types (Black tiger shrimp, Whiteleg shrimp)

Certification Registry Number ASC-C-01632
MSC

16 types

Certification Registry Number MSC-C-52165

Salmon varieties (pink salmon, king salmon, coho salmon, chum salmon,
sockeye salmon), Walleye pollack, Pacific cod, Flatfish varieties (Kamchatka flounder,
yellowfin sole, dusky sole, white flounder), Scallops, Herring, Capelins, Snow crabs,
Arctic surf clams■ Supplier Surveys
In FY18/3, the Group shared the Nichirei Group Sustainable Supply Chain Policy with its primary suppliers in an effort to grasp what is happening
throughout the supply chain. In FY18/3, Nichirei Foods and Nichirei Fresh administered a survey in the form of a questionnaire directed at its
essential suppliers both in Japan and overseas.
In FY19/3, the Group will analyze the results of this survey and consider future steps.

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Sustainable Supply Chain Policy

Human Rights Initiatives
Basic Philosophy
The Nichirei Group believes that respecting the human rights not only of the Group’s employees, but also all stakeholders involved in its businesses,
including supply chains, is significant and absolutely essential.
In order to build a sustainable supply chain, the Group established the Nichirei Group Sustainable Supply Chain Policy in April 2017. The Groupprocures products and services in accordance with the following Policy and asks suppliers to assent to and comply with this policy. In one of theitems, where it is stated that that “the Nichirei Group respects human rights and provides safe, healthy work environments,” sexual harassment,child labor, and discrimination against women and people with disabilities is forbidden.
Code of Conduct (https://www.nichirei.co.jp/english/corpo/compliance/regulation.html)
Nichirei Group Sustainable Supply Chain Policy (https://www.nichirei.co.jp/english/csr/supplychain/index.html)

Management System
In the Group’s endeavors to respect human rights in its business activities, the Group is aware that it may have various impacts on society andthe 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 2018, the Group began performing due diligence withregard to human rights and has been engaged in many discussions both internally and externally to establish a human rights policy.
In addition, as one of Nichirei's external activities related to human rights, the Group is participating in the Stakeholder Engagement Program
operated by the Japan CSR Consortium, for which the Caux Round Table operates a bureau.

Initiatives for Fiscal 2017 (FY18/3)
In its business activities, the Group is undertaking initiatives aimed at respecting the human rights of its supply chain and employees.
Human Rights Initiatives (https://www.nichirei.co.jp/english/corpo/humanrights.html)■ External Communications
During the Caux Round Table stakeholder engagement program held between May and July 2018, there were proposals from NGOs and others,
as well as dialogue among companies that delved into human rights issues in different industries.
Regarding human rights issues in the food industry, some issues raised included human rights and occupational safety and health for raw
materials suppliers overseas as well as foreign workers and technical trainees in domestic operations. The Group has been sharing issues in its
supply chains at the Company-wide CSR Management discussion meeting since FY18/3, but in light of these discussions, starting in FY19/3, theGroup began a human rights risk assessment.
In addition, in September 2018, the Group participated in an international convention (hosted by CRT Japan) that was attended by major
NGOs and human rights experts both in Japan and abroad, at which guiding principles related to business and human rights were proposed.

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Foster Cooperative Relations with Communities

Contributions to Society
Basic Philosophy/Policy
The Nichirei Group believes that forging a good relationship with communities and society, as well as contributing to their development throughits businesses, is essential to accomplishing its business pursuits. The Group has established its philosophy regarding social contributions in the below
policy, and regarding both business matters and other unrelated matters, the Group will aim for coexistence and coprosperity with society.

The Nichirei Group Policy Regarding Social Contribution
The Group wishes to be seen by society as a trustworthy corporate citizen. We contribute to society by carefully selecting materials,
creating good flavors and health, and through stable and efficient logistics. We also contribute to society in areas other than our businessactivities, based on goodwill, empathy, and a sense of duty. Our social contributions are centered on food- and logistics-related education,
regional contributions, environmental protection, disaster relief, and sports sponsorship.

Management System
Regarding contributions to society, the Group has established a Group Social Contribution Committee, and in addition to holding committee
meetings once a year, the chairman calls a meeting when necessary to check on initiatives and perform reviews. In addition, the Mori factory in
the Kayabe District of Hokkaido has formed a partnership with the local government to perform forest maintenance on town-owned lands.
Group Social Contribution Committee (https://www.nichirei.co.jp/english/corpo/management/governance.html)

Initiatives for Fiscal 2017 (FY18/3)■ Contributions through Use of Company Resources
Chichijima, Ogasawara Islands
The Nitto Ice Manufacturing Company set up an ice-making plant on Chichijima one of the Ogasawara
islands. It survived the confiscation of Ogasawara by the US military after World War II ended and, when
the island was returned to Japan in 1968, the land and buildings were registered as the property of Nichirei.
Chichijima had several flourishing activities at the time, including the production of crafts made using
Pandanus boninensis leaves, and hula dancing by local groups. The Nichirei Group wanted its facilities tobe used for those pursuits, so it demolished the buildings and planted grass, for which it cared.

Urabandai

Factory site

Contributions through Use of Company Resources > Urabandai (https://www.nichirei.co.jp/english/csr/social/property.html)■ Food and Logistics Education Making Use of Business Characteristics
Nichirei Foods’ Food Education Activities
Nichirei Foods conducts various food education programs to promote a healthy future for all children. Food is indispensable and intricately
connected to our everyday life. Good eating habits nurture a healthy spirit and healthy body. In order that children may grow up healthy, it isimportant that they understand the importance of food and are able to choose it properly. Nichirei Foods conducts various initiatives designed
to enable people to learn and think about food, and do related hands-on work with children.
Food Development Center “KidZania Tokyo,” “KidZania Koshien”
KidZania Tokyo and KidZania Koshien (https://www.nichirei.co.jp/english/csr/social/education.html)

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Foster Cooperative Relations with Communities

Children on a Factory TourThe concepts are See! Learn! Enjoy!, and Nichirei Foods employees are the teachers. They use videos
and PowerPoint slides to explain the frozen food manufacturing process to elementary school students,
including the production of frozen food products, Honkaku-Itame Cha-Han (fried rice) and Imagawayaki.
Imagawayaki.
The program, which allows children to have fun while learning, is full of frozen food quizzes and videos
that they otherwise would never see, even on an actual tour. In that way, the program teaches thestudents about Nichirei Foods’ careful approach to manufacturing and the merits of frozen food. In
FY18/3, the Group held 20 factory tours with 900 children participating. Sometimes they were watching
videos while smiling, and sometimes they had intent expressions.
Five Flavors Identification Test
In this food education program, participants took a taste test in which they tried to identify the five tastes of sweet, sour, salty, bitter, and umami.
Employees gave talks on how the tastes felt and what makes a frozen food. In FY18/3, this event was held nine times with 300 people participating.
* Not available to the public.

FamilyApps
With FamilyApps, a smartphone app that families can enjoy together, Nichirei Foods has distributed an app called “Let's Make a Delicious Nichirei
Lunch!” that enables users to make lunches using Nichirei Foods’ frozen products. The content, which allows kids to have fun while making lunch,helps deepen their interest in, and concern regarding, food. In FY18/3, this event was held 14 times with 1,700 people participating.
“Delicious” Words
Food and Logistics Education Making Use of Business Characteristics >“Delicious” words (https://www.nichirei.co.jp/english/csr/social/education.html)
Nichirei Fresh Food Education Activities
Food education classes are organized in elementary schools and preschools in the town of Karumai using a dish the Group call Fresh Chicken
Karumai. In the classes the Group presents easy-to-understand information that includes the following: Iwate Prefecture boasts the nation's

Junwakei breed of chicken is raised on feed rice
third-highest production of poultry, after Miyazaki and Kagoshima Prefectures; the company’s Junwakei
produced in Karumai; and the guano from Junwakei chickens is used as an organic fertilizer for the feed rice.
In addition to teaching the children about the production cycle, they are served Junwakei chicken in their school lunch that day. The Group will
always value opportunities such as these to connect with people in the region, as it continue to develop attractive business opportunities.

■ Logistics-related Education
Lectures Offered at Universities
Food and Logistics Education Making Use of Business Characteristics >Lectures offered at university (https://www.nichirei.co.jp/english/csr/social/education.html)
Internships in the Logistics Industry
Since 2014, the Nichirei Logistics Group has been participating as an intern-accepting company in the Logistics Industry Internship program hosted
by the Japan Association for Logistics and Transport. This initiative allows university students to get a broad view of, and experience in, the logistics
industry. On the first day of the internship, the Group gave a presentation on the Nichirei Logistics Group’s business, followed by discussions
concerning food logistics and tours of logistics centers. Students who attended told us that this opportunity had enabled them to understandthe importance of food logistics, and that it increased their interest in logistics as a commercial activity to transport goods to customers. The
Group will continue to participate in tertiary-level courses, to further broaden the appeal of the logistics industry.

■ Workplace Tours and Job Experience
Logistics Center Field Trip/Internship
The Nichirei Logistics Group continuously provides opportunities for elementary and junior high school students near its logistics centers to attend
field trips to these centers. In FY18/3, junior high school students toured the Oi DC, and nursery school students toured the Tsuzuki DC. The
students experienced cold storage facility temperatures (below -20°C) after hearing an explanation from employees. In addition, due to a requestfrom the city, the Morioka-nishi DC offered internships to three high school students. They were given the chance to actually experience workat a logistics center and gain better insight into food logistics.
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Foster Cooperative Relations with Communities■ Effective Use of Food and Collaboration with Food Banks
Since July 2005, Nichirei Foods has backed the activities of the NPO food bank, Second Harvest Japan*.
Employees who had lived in the US were supportive of the food bank system that was spreading there.
They decided they wanted Nichirei to contribute to similar activities and, while searching for a partnerwith which to work, discovered Second Harvest Japan. Quite free of charge the Group provides the
NPO with frozen foods that are not questionable in terms of quality, but which it could not sell in usual
markets for such reasons as that the outer packaging has been damaged in transit. With the help of
the Nichirei Logistics Group, it uses refrigerated transport to deliver the products directly to institutions
certified by Second Harvest Japan.

Example of a broken carton, its content
is hard to use* Second Harvest Japan: First food bank in Japan. Gained corporate status in July 2002. Provides food with a safety guarantee to the needy.

■ Support through Business Activities
Nichirei Hagukumi Forest
Nichirei Foods’ Mori factory in Hokkaido began a partnership with the town of Mori in Kayabe District, Hokkaido to perform forest maintenanceon town-owned lands as part of the “Nichirei Hagukumi Forest” initiative. This initiative, ”Good for the forest!,” as part of the Group’s activities
to help the forest, involves a plan to plant trees in a 1.2 hectare plot of land owned by Mori, as well as plant and nurture 400 cherry blossom(Someiyoshino) trees, the town’s plant symbol, over ten years. The employees at the Mori factory along with their families and the rest of thecommunity participate as well, and the Group is working to help the activity take root in the region.
The “Good for the forest!” conservation activity is spreading to other factories, with Kyurei working to restore the pine trees of the Satsuki
Matsubara area in Munakata City, Fukuoka Prefecture, and Nichirei Foods’ Shiroishi Factory supporting beech forestation efforts in the Zao area.
Cooking Classes in Ishinomaki Temporary Housing Facilities (Nichirei Foods)
In an effort to support communities that have been affected by the massive earthquake and tsunami that struck Japan’s Tohoku region in 2011,
Nichirei Foods Inc. has organized cooking classes in temporary housing facilities. Even after large numbers of people moved from those facilities,
Nichirei Foods continued its support. Employees were sent schools to give students a virtual experience of a factory tour. Using audio-video materials
showing an actual production plant, the employees gave the students easy-to-understand lessons about the processes involved in making frozen
food products, Nichirei Foods’ safety and security initiatives, and its fastidious manufacturing techniques. In FY18/3, cooking classes were held in
Ishinomaki City, Miyagi Prefecture at Futamata Elementary School and Minato Elementary School, with a total of 43 children participating.
Forest of Life Project (Nichirei Fresh)
Forest of Life Project (https://www.nichireifresh.co.jp/inochinomori/) (Only available in Japanese)
Providing Test Drugs to Myanmar Medical Institutions (Nichirei Biosciences)
Since fiscal 2006, Nichirei Biosciences Inc. has been providing, free of charge, antibodies used forpathological testing to medical institutions in Myanmar. The products are provided through theinternational public health division of Niigata University’s School of Medicine. In Myanmar, 42 types ofantibodies for immunostaining are difficult to obtain locally. Thus, antibodies and reagents necessary
for medical examinations were donated to the University of Medicine 1, University of Medicine 2, andYangon Children’s Hospital, for use in research and medical treatment, including pathological testing,at each of those facilities. In February 2018, Professor Emeritus Makoto Naito and others visited Myanmar
University of Medicine 2, Yangon, and in addition to test drugs, Nichirei Biosciences provided pathogen
staining samples used in the creation of pathology teaching materials, among other resources. Nichirei Biosciences remains committed to helping
improve medical education and pathological research and diagnosis in Myanmar.
Support for Hospitality Guest House
There are over 500 incurable diseases of unknown original that affect children, and there are 200,000 children fighting these illnesses. It is
impossible to calculate the financial burden and mental anguish inflicted on them and their families. The foundation A Dream A Day In Tokyo
conducts activities to help give courage to children with major illnesses, reduce their family’s anguish, and create happy memories during theirtrip to Tokyo. As an endorsee of the foundation’s aims, the Nichirei Group provides support in the form of tours of Nichirei Foods and KidZania,
and use of the Sukore Yukigaya training center for accommodations.

Nichirei’s training center provides lodgings

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Foster Cooperative Relations with Communities■ Supporting Sports for a Healthy Life
Along with food, Nichirei supports sports as one of the pillars of health.
Supporting Sports for a Healthy Life (https://www.nichirei.co.jp/english/csr/social/sports/index.html)■ Donations and Other Support
Donations to Support Disaster-hit Areas
In FY12/3, Nichirei decided to donate 10 million yen per year for five years, for a total of 150 million yen, to each of the three prefectures—Iwate,
Miyagi, and Fukushima—hardest hit by the Great East Japan Earthquake of March 11, 2011. At Nichirei Ladies, the official Ladies Professional
Golfers’ Association of Japan tour held in June 2011, all entrance fees were donated to the city and prefecture of Chiba.
In addition, after the Kumamoto earthquake in 2016, in addition to donating 10 million yen to Kumamoto Prefecture, we responded torequests from the prefecture and provided 9,000 Restaurant Use Only beef curry meals to the Uki City Hall.
In response to the heavy rainfall that occurred in July 2018, we donated 10 million yen through the Japanese Red Cross Society to assist withinitial restoration efforts in areas heavily damaged by the disaster. Moreover, the Nichirei Fureai Fund, in which the company matches contributions
made by employees, one million yen was donated to the Japanese Red Cross Society.
Fureai Fund Donations
The Nichirei Group’s social contributions include fund-raising activities and donations. Through endorsement contributions from employees anddonations made by the company itself, the Nichirei Fureai Fund, set up in 1993, provides financial support for social welfare, disaster and medical
relief, and donations to disaster areas affected by natural disasters and other events.
Through the Central Community Chest of Japan and the Tokyo Good Will Bank, we provide support via graduation congratulatory money tohelp support the independence of children in social care, as well as via “children’s cafeterias” to aid those in difficult circumstances and victimsof bullying, etc. Nichirei also provides support for preparation expenses for disaster relief to the Japanese Red Cross Society. In FY18/3, the Group
donated 262 million yen total.
Support for the Keidanren Nature Conservation Fund
Nichirei endorses the spirit of the Keidanren Nature Conservation Fund, to which it has been donating since 1994. The fund supports nature
conservation activities primarily in the developing areas of the Asia-Pacific region, as well as conservation activities and the sustainable use ofnatural resources in order to maintain the preservation of Japan’s splendid natural environment.
Eco-caps
At all workplaces of the Nichirei Group plastic bottle caps from PET bottles are collected to support the activities of NPOs that sell them as plastic
raw materials to recycling companies, thereby raising money to fund vaccines for children in developing countries. The sale of 800 caps brings inroughly 20 yen, which pays for a polio vaccine for one person. By contrast, were the caps burned as garbage, 3,150 grams of CO2 would be
released per 400 caps, so recycling the caps also helps reduce CO2 emissions.
Participation in Table for Two
The Nichirei Group participates in Table for Two, an employee-participation social contribution activity that starts in the employee cafeteria. The
project involves adding 20 yen—the cost of a school lunch for one child in a developing country—to the cost of the cafeteria food to make afood-support donation. Moreover, the foods that can provide this donation are limited to healthy, low-calorie items, so that the program also
plays a role in improving employee health. The program is currently conducted at two workplaces, the Nichirei Higashi Ginza Building and theTechnology Development Center.
Restoration of Endangered Cypripedium macranthos
Restoration of Endangered Cypripedium macranthos (https://www.nichirei.co.jp/english/csr/social/contribution.html)

49

Nichirei Group CSR Report 2018

For the Benefit of Society

Continually Enhance Workplaces

Fundamental Policy on Human Resources
The Nichirei Group believes that its employees are a precious resource, and refers to them as human assets rather than human resources. EachGroup company promotes efforts adapted for its individual businesses, but the Group has also established the Group-wide Group Human Assets
Committee and Diversity Promotion Conference and shares information about and confirms the progress with each company’s measures toimprove job satisfaction. Each Group company is working to create a workplace full of vitality, based on the Group’s fundamental policies.

Corporate Philosophy: Start by Focusing on Employees
The Nichirei Group believes that our employees are the source of corporate development, and we hope that the work given to each
employee is fulfilling and provides an opportunity for self-actualization. Simultaneously, we respect the dignity of each individual, theexpression of their personality, and their right to a full personal life.
(1) Provision of opportunities for the development and manifestation of skills.
(2) Implementation of a reward system based on ability, effort, and results.
(3) Creation of a workplace environment that is safe and well-ventilated.
(4) Prevention of discrimination based on gender, age, education, race, or religion, and the provision of equal opportunity.

Fundamental Policies for Workplace Improvement
Employee-focused Workplace Environment
Based on our fundamental principle that improvement in customer satisfaction (CS) and employee satisfaction (ES) are the two pillars
that support the company, we maintain a workplace environment where all employees in the Nichirei Group can take pride in their work
and workplace; work with ambition through a relationship with superiors based on trust; and fully exercise their abilities.
Promotion of Diversity
We promote diversity first, by acknowledging different attributes, such as gender, age, and nationality, as well as values. Second, we
promote it by changing simple tolerance of new ideas and values that differ from conventional ones into a force driving the company's
evolution to acquire a work force (human assets), improve the job and life goals of employees, and create new concepts and values.

The Nichirei Group Workplace Improvement Policy
In an effort to increase job satisfaction and create workplaces that reflect the Nichirei Corporate Philosophy and Nichirei, the Group has
adopted a Nichirei Group Workplace Improvement Policy, and hopes to achieve the policy objectives by fiscal 2021. By facilitating
workplace improvements that suit the special characteristics of each of its businesses, the Nichirei Group aims to incorporate and draw

Ensure Equal
Opportunity

Enable Diverse
Working Styles

on diverse values and ideas, make its organizations more dynamic, and raising productivity.
Provide working
condition options

Employees shall have a certain degree of freedom to choose their workplace andworking hours, to suit personal circumstances. Systems to maintain these conditions
are to be put in place.

Set up systems to prevent
disruption of
employee careers

Systems are to be established to prevent employees’ careers from being disrupted
or ended because of such circumstances as childbirth, childcare, nursing care, poor
health, relocation of a spouse, or disease.

Prevent excessive
working hours

Through collaborative labor and management initiatives for workplace improvement,
working hours shall be limited to levels that allow each employee to demonstrate
their ability and perform satisfying work in good health.

Promote the advancement offemale employees

Female employees shall be given the same opportunities as their male peers, andoffered necessary training in recognition of their value to the Nichirei Group.

Provide stimulating
employment opportunities
for people with disabilities

Job positions and employment opportunities for people with disabilities shall becreated to allow them to earn a living through stimulating work, with a vision toultimately eliminate the distinction between people with or without disabilities insociety.

Create employment
opportunities
for older people

As people live longer, healthy lives, opportunities shall be created to allow older
people to play an active role in the workplace by drawing on their particular skills
bearing in mind individual working styles and values.

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Nichirei Group CSR Report 2018

For the Benefit of Society

Continually Enhance Workplaces

Occupational Safety and Health
Basic Philosophy
As company activities become more globalized, in Japan, with society continuing to age, employment and work styles undergoing significant
change, and other factors, the structure of society is transforming greatly. Amidst all of these changes, it is necessary to create a safe andcomfortable workplace environment that maintains employees’ physical and mental health so that each and every employee can feel satisfied
and harness their abilities to the fullest extent possible. The Nichirei Group considers employees to be irreplaceable, and continually enhancing
its workplace is one part of the Nichirei Pledge. Based on this philosophy, the Group is working alongside employees to create an active workplaceenvironment that is safe and facilitates open communication.
Nichirei Group Health Declaration (https://www.nichirei.co.jp/csr/report/2017/pdf/pdf_2017_010.pdf) (Only available in Japanese)

Management System
The Nichirei Group has established an Occupational Safety and Health Committee based on the Industrial Safety and Health Act and promotes
safety and health management in an effort to prevent work-related accidents and manage employees’ health. At branch sites, the main issues
are work time management related to extended work hours, no overtime days, and so on, and at food factories and refrigerated warehouses,
the main issue is reducing work-related accidents. As such, the Group is working to make improvements to workplace environments that are
adapted for each workplace. In addition, based on the idea that customer satisfaction (CS) and employee satisfaction (ES) are the two wheels of
the “vehicle” of improvement, the Group perform periodic ES surveys at each company. The Group aims to improve employees’ ability to attaintheir work goals, and create employee-focused workplaces by moving through a plan-do-check-act (PDCA) cycle, comprising conducting surveys→ giving feedback on survey results → identifying issues and assigning priorities and, finally → planning and executing solutions. Regarding theplanning and execution of measures, the Group is implementing a variety of solutions, such as having each company’s President and Human
Resources representative gather for meetings of the Group Human Assets Committee (held twice a year) to share their progress, as well as applying
effective measures to companies.
In addition, in fiscal 2015 (FY16/3), the “Health Promotion Group” was established within the Human Resources Strategy & General Affairs
to serve as the division in charge of overseeing health management. And in FY17/3, the Group established the Nichirei Group Health Declaration
and Group Health Management Standards. Along with spreading this declaration both inside and outside the company, the Group has instructed
the top health promotion representative of its holding company and those responsible for and in charge of overseeing health promotion at eachGroup operating company to make progress with health management.
● Occupational Safety and Health Committee Organization Chart

Committee chair: Executive in charge ofhuman resources/general affairs
Committee members: Person in charge of each Nichirei division, twomembers of the labor union, industrial physician, public health nurse

Nichirei

Main Agenda Items (2018)
・Report and discussion on overtime work
・Report/discussion on workplace environment test results
・Report on health examination results
・Report on workplace patrols
・Discussion on workplace environments that facilitate ease of working

BureauNichirei
Human Resources Strategy & General Affairs

Nichirei
Foods

Nichirei
Fresh

Nichirei
Logistics Group

Example: Nichirei (Holding Company) Occupational Safety
and Health Committee (convenes once a month):

Nichirei
Biosciences

Nichirei(Holding
Company)

Central Council (once a year)
As per the labor agreement, the Group established a Group-widelabor-management meeting called the “Central Council.” Management andmembers of the labor union have frank discussions about the developmentof the Group’s businesses, improving business operations, enhancing thewelfare of union members, and so on.
・Theme for FY18/3: The Nichirei Group initiatives for health management
and revisions to way of working
Committee members: 13 from the company, 13 from the labor union

Operating Companies’ Occupational Safety and Health Committees
Committee chair
BureauDivision members

Division members

Division members● Number of Work-related Incidents at Food Factories
FY14/3(Incidents)
FY15/3

FY16/3

FY17/3

FY18/3

Incidents Requiring Time Off

14

18

21

17

34

Incidents Not Requiring Time Off

15

25

23

18

12

* Target: Employees of Nichirei Foods-operated factories and Nichirei Fresh domestic subsidiaries* Includes contract employees, temporary employees, part-time employees, etc.

Nichirei Group Health Declaration (https://www.nichirei.co.jp/csr/report/2017/pdf/pdf_2017_010.pdf)(Only available in Japanese)
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Nichirei Group CSR Report 2018

For the Benefit of Society

Continually Enhance Workplaces

Initiatives for Fiscal 2017 (FY18/3)
The Group aims to enhance its workplace and create a workplace that focuses on employees and offers a high level of satisfaction. Please see
below for details on efforts.
Creating an Employee-Focused Workplace (https://www.nichirei.co.jp/english/csr/work/investigation.html)
In March 2005, the Nichirei Foods Shiroishi factory in particular became the first member of the Group to receive JISHA-approved OSHMS(Occupational Safety and Health Management System) certification, and the 49th business establishment overall in the country. Occupationalsafety and health initiatives are making progress with the aim of improving safety standards.
Nichirei Foods Shiroishi factory receives JISHA-approved OSHMS (Occupational Safety and Health Management System)
certification (https://www.jisha.or.jp/oshms/certified/pdf/list_eng.pdf)
In addition, Nichirei Logistics Group is implementing initiatives to improve the safety of operating vehicles as well as awareness through lectures
and technical competitions.
Fork lift truck competition (hosted by Nichirei Logistics Group) (https://www.nichirei-logi.co.jp/news/2017/20180217.html)(Only available in Japanese)
Driver safety training (Logistics Network) (https://www.nichirei.co.jp/english/csr/environment/action/factory/center.html#06)
In terms of health management initiatives, a variety of health promotion measures have been implemented, such as thorough aftercare forhealth exams led by industrial hygiene staff, health education activities and stress checks during health exams, expansion of the hands-on healthsupport program for employees, “Nichirei Health School,” and remote diagnoses by industrial physicians using ICT. These initiatives were wellreceived, and continuing from 2017, the Nichirei Group received the “Health and Productivity Management Outstanding Organizations 2018—Large
Enterprise Category (White 500)” certification from the Ministry of Economy, Trade and Industry.

■ Nichirei Foods Safety Activities
Nichirei Foods designated “Three Pillars of Safety Activities” as essential measures for safety activities in food factories: safety patrols, near-missactivities, and abiding by the safety rules. For 2017, it implemented initiatives such as the following.
For safety patrols, it customized the patrol items for each factory and narrowed down the list to the most effective items based on input fromthose on-site. In addition, it focused patrols on early morning and late night shifts where not many managers are present, learning about problems
areas and ideas from employees.
For near-miss activities, in addition to informing employees about near-miss reports and sharing them with everyone so as to raise employee
awareness, it also re-established its evaluation criteria to prevent inconsistencies with the proposed near-miss evaluation method and changed
the mechanism to reliably enforce prevention measures.
Further, regarding abiding by the safety rules, it worked to ensure that the rules were correctly and thoroughly known and understood, thatthey were always kept in mind, and that deviations from the rules were thoroughly prevented.

■ Health Supervisor
The Nichirei Group has 89 primary health supervisors and 11 secondary health supervisors for a total of 100 individuals who possess certification
as health supervisors, who are engaged in working environment management and worker health management.

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Nichirei Group CSR Report 2018

For the Benefit of Society

Continually Enhance Workplaces

Labor Practices
Basic Philosophy
For the Nichirei Group, employees are regarded as irreplaceable, and so they are referred to as human assets rather than human resources, and
the Group considers both employee and customer satisfaction to be of equal importance.
The Group operates on the premise of respecting work regulations in each domestic and overseas operating region and ensures appropriate
working conditions. However, in addition to this, it also believes that it is important to strive to respect employees as individuals, create a workplaceenvironment where all employees can be proud of their workplace and job, assist employees in developing their individual abilities, and provide
equal opportunity for better work conditions and evaluations without discrimination. In addition, it also believes that respecting the diversity of
individual values and attributes and allowing for a variety of work styles to bring out employees’ ambition and abilities plays an important role inemployees improving their careers and expertise.
The Group is aware that improving the mental and physical health and safety of union members and employees, maintaining and improving
employees’ will to work, and helping them improve their abilities contributes to strengthening its competitiveness as a company. This philosophy
is established in the Group’s Fundamental Policies, and each Group company will work to create a vibrant and active workplace and achieve
mutual prosperity alongside employees.
Fundamental Policies for Workplace Improvement (https://www.nichirei.co.jp/english/csr/work/policy.html)
Code of Conduct (https://www.nichirei.co.jp/english/corpo/compliance.html)
The Nichirei Group Workplace Improvement Policy (https://www.nichirei.co.jp/english/csr/work/policy.html)

Management System
Each Group company promotes efforts adapted for its individual businesses, however, the Group has also established the Group-wide Group
Human Assets Committee and Diversity Promotion Conference and shares information about and confirms the progress with each company’s
measures to continually enhance workplaces through these two councils. In addition, to respond to reports and consultations from employees
regarding labor practices, the Group introduced an internal reporting and consultation system (Nichirei Hotline) in October 2003.
Between fiscal 2013 (FY14/3) and fiscal 2017 (FY18/3), there have been 13 cases involving consultation about human affairs or matters related towork conditions. With this in mind, the Group is striving for coordination between management and labor through cooperation with the labor union.

Initiatives for Fiscal 2017 (FY18/3)■ Senior Staff System
Since 2002, the Nichirei Group has been working to provide work opportunities after mandatory retirement. In 2006, the Group transitioned to
the New Senior Staff System, which resulted from partial revisions in accordance with the revised Elderly Employment Stabilization Act. In FY18/3,
44 senior staff members were rehired by the Nichirei Group after mandatory retirement. In addition, the Group is making active efforts withrespect to hiring global talent.

■ Impartial Hiring Opportunities
The Group releases recruiting essentials and all other information on its website, accepts a wide variety of applications, and impartially selects
new graduates.
Creating an Employee-Focused Workplace (https://www.nichirei.co.jp/english/csr/work/investigation.html)
Promotion of Diversity (https://www.nichirei.co.jp/english/csr/work/divercity.html)
Labor union activities; labor-management cooperation (https://www.nichirei.co.jp/english/corpo/humanrights.html)
Number of employees (by job type, rank, gender)(https://www.nichirei.co.jp/english/csr/pdf/index_csr_data.pdf)● Group Total Number Hired (new graduates, experienced workers)
Number of new graduates hired
Breakdown
Male
FemaleNumber of experienced workers hired
Breakdown
Male
FemaleFY14/3

FY15/3

FY16/3

FY17/3

FY18/3

80
52
28
80
66
14

106
61
45
50
36
14

83
58
25
45
36
9

92
57
35
68
42
26

101
54
47
45
36
9

FY14/3

FY15/3

FY16/3

FY17/3

FY18/3

3,622
2,547
41.3

3,635
2,408
39.8

3,628
2,241
38.2

3,755
2,270
37.7

3,780
2,228
37.1

● Percentage of Non-company Employees
Number of company employees
Number of non-company employees
Percentage of non-company employees (%)

53

Nichirei Group CSR Report 2018

For the Benefit of Society

Continually Enhance Workplaces

Human Rights (Labor-management Relations)
Basic Philosophy
The Nichirei Group is aware that, when it comes to operating a global business, respecting the human rights not only of the Group’s employees,
but also all stakeholders involved in its businesses is absolutely essential, and that this philosophy applies to all people and companies.
Based on this way of thinking, the Group has referenced both the “ILO Declaration on Fundamental Principles and Rights at Work”*1 and the“UN Guiding Principles on Business and Human Rights”*2, among other international human rights standards, and sets forth the Group’s Codeof Conduct as follows. The Nichirei Group respects human rights and does not discriminate at all based on race, skin color, gender, religion,
political views, nationality, social status, background, or any other factor. The Nichirei Group rejects all forms of forced labor and child labor.
Furthermore, discriminatory behavior, violent behavior, sexual harassment, power harassment, and other such behavior is forbidden, and regulatory
standards are adhered to with regards to wages (including legal allowances) and working hours.
In fiscal 2017 (FY18/3), the Group established “The Nichirei Group Workplace Improvement Policy” based on the Nichirei Pledge and aims toachieve its goals by FY22/3. In addition to each Group company promoting efforts that address their individual issues, Nichirei also facilitate exchanges
of information and confirms each other’s progress through the Group-wide Group Human Assets Committee and Diversity Promotion Conference.
*1 All member nations pledge to respect, promote, and realize the obligation to eliminate discrimination in hiring and employment, implement effective abolition of child labor, forbid
forced labor, and effectively approve freedom of association and the right of collective bargaining.
*2 Established by the Special Representative of the Secretary-General John Ruggie with the objective of enforcing the “Protect, Respect and Remedy” framework established tostrengthen the standards and customs related to multinational firms’ businesses and human rights.

Code of Conduct (https://www.nichirei.co.jp/english/corpo/compliance.html)
Workplace Improvement Policy (https://www.nichirei.co.jp/english/csr/work/policy.html)
Nichirei Group Sustainable Supply Chain Policy (https://www.nichirei.co.jp/english/csr/supplychain/index.html)■ Labor-management Relation Philosophy
The Nichirei labor union aims for activities that respect each union member for the healthy development of the Group, based on the principle offirmly maintaining an equal relationship between labor and management and creating an environment that allows for activities based on mutual
ambition. The union’s activities place importance on labor-management negotiations, narrowing down the demands of its members in theworkplace and pushing for improvements, while maintaining a productive relationship with management.
Labor union activities; labor-management cooperation (https://www.nichirei.co.jp/english/corpo/humanrights.html)

Management System
In addition, to respond to reports and consultations from employees regarding violations of employees’ human rights, Nichirei introduced aninternal reporting and consultation system (Nichirei Hotline) in October 2003. Over the past three years, an increasing number of reported cases
have involved workplace disputes and harassment. To establish a whistleblower hotline independent of management, as stipulated in the Corporate
Governance Code, after the revision of the internal reporting system in FY16/3, Nichirei created and distributed “Nichirei Hotline” mobile cards
to employees and posted awareness posters around the workplace to make sure to inform employees about the system. The Group also sharesmonthly collections of examples regarding the code of conduct with employees via groupware to raise awareness about maternity harassmentand other legal violations.

Initiatives for Fiscal 2017 (FY18/3)
Between FY17/3 and FY18/3, the Group had group leaders (section managers or equivalent) participate in study groups on 20 occasions to raiseawareness about target compliance issues. 453 individuals attended.
The seminars were designed to reaffirm the significance of, and need for, compliance, as well as to review the Group’s compliance-related
policies. During training, participants examined their role as group leaders in ensuring and promoting compliance, including the prevention ofharassment. Going forward, the Group will continue education to cultivate awareness about respect for human rights.
E-learning to prevent harassment has also been introduced, and has been used by 4,943 employees.
In FY18/3, there were 12 cases of internal reports or consultations related to human rights complaints and allegations. In accordance withcompany policy, all reports received are relayed to top management by the administration office, which also conducts an investigation to confirm
the facts, implements corrective measures, and provides feedback to the person who made the report (when not reported anonymously).
Anonymity is preserved to protect the identity of the person reporting, while the process is carefully managed to ensure there is no retaliation
against, or adverse treatment of, those who are the subject of complaints.
Compliance (https://www.nichirei.co.jp/english/corpo/compliance.html)
54

Nichirei Group CSR Report 2018

For the Benefit of Society

Continually Enhance Workplaces

Human Asset Cultivation and Diversity
Basic Philosophy
The Nichirei Group, in order to fulfill its mission statement, is striving to continually enhance its workplaces as part of the CSR activities of its basic
policy, the Nichirei Pledge. In addition, in “Corporate Philosophy: Start by Focusing on Employees,” the “prevention of discrimination based on
gender, age, education, race, or religion, and the provision of equal opportunity” is established as one of its policies.
The Nichirei Pledge (https://www.nichirei.co.jp/english/csr/responsibility.html)
The Nichirei Group Workplace Improvement Policy (https://www.nichirei.co.jp/english/csr/work/policy.html)

Management System
Each Group company promotes efforts adapted for its individual businesses; however, Nichirei has also established the Group-wide Group Human
Assets Committee and Diversity Promotion Conference. These councils share information about and confirm the progress with each company’s
measures to continually enhance workplaces.
The Group Human Assets Committee holds a conference twice a year, and the subordinate Diversity Promotion Conference is held three times
a year in collaboration with management and labor unions. The Diversity Promotion Conference reports the details of the meetings to the Group
Human Assets Committee.
The Diversity Promotion Conference studies and oversees the measures taken by all companies, particularly initiatives related to respecting employees’human rights, job satisfaction, and diverse work styles. The measures include promoting the equal participation of men and women as a company
that supports women’s success in the workplace, employment of foreigners and other groups that demonstrates a global mindset, allowance for adiverse array of work styles suited to different life stages and ages, and employment of and cooperation with people with disabilities. The Group is
working to continually enhance workplaces and raise awareness at Group companies through promoting the sharing of information, Group-wide
application of effective measures, and other efforts. In addition, in fiscal 2017 (FY18/3), the Group established The Nichirei Group Workplace
Improvement Policy, and is striving to enable diverse working styles, prevent excessive working hours, and ensure equal opportunities by FY22/3.

Initiatives for Fiscal 2017 (FY18/3)■ Hiring People with Disabilities
The Group actively hires people with disabilities as part of its policy to achieve employee
diversity. As a result of its initiatives, the Group has a hiring rate higher than the legally● Ratio of Employees with Disabilities

FY18/32.50%

FY17/32.62%

it is engaged in cleaning offices and maintaining green spaces at food factories and

FY16/3

2.64%

distribution centers. Moreover, in the Tsukiji district of Chuo Ward where the functions of the

FY15/3

2.36%

Group head office are concentrated, it collects and recycles unneeded documents, delivers

FY14/3

2.17%

mandated rate.
In February 2007, Nichirei Aura received certification as a special subsidiary company, andmail, shreds unneeded documents, and more.

■ Offering Employees Workplace Transfer Options
Nichirei Foods Inc. revised its personnel system during FY16/3 and FY17/3, in order to specify which employees are not subject to job transfers.
Those who are unable to move to a distant location due to marriage, childcare, nursing, injury or sickness, or other personal reasons, or those
who have worked more than a set amount of time, can remain at their desired workplace based on their individual career objectives regardlessof reason, and can themselves decide whether they are eligible to be transferred. The revisions were instituted out of respect for the diverse
circumstances and preferences of Nichirei Foods employees, and to create workplaces in which all members are motivated to work.

■ Promote the Advancement of Female Employees
The Nichirei Group, as part of its Work Improvement policy of promoting the advancement of female employees, provides equal opportunities
and education regardless of gender and helps women develop into indispensable assets. The initiatives include developing female employee job
consciousness, furthering understanding of management of female subordinates, and promoting a mindset focused on growth.
Nichirei Foods cooperated with other food product companies to hold a women’s career seminar. Additionally, it is dispatching employees toleadership training sessions that promote exchange among different industries so that it can cultivate female leaders. Nichirei Logistics Group
periodically holds a forum for women working in logistics. Through workshops and other activities, participants deepen their understanding of
the changing social climate and policies promoted by the company. Moreover, Nichirei Logistics Group selects one to two women at each of its
companies to serve as women empowerment representatives. They utilize the knowledge they gain at study conferences and such to work toward
solving issues.
55

Nichirei Group CSR Report 2018

For the Benefit of Society

Continually Enhance Workplaces■ Career Declaration System
To improve job satisfaction, it is important to provide employees with roles compatible with their career plans. The Group has introduced a Career
Declaration System in which all employees assess their career and declare their future career objectives once a year. This information is taken into
account when deciding transfers and assignments.

■ Maternity Leave Return Rate
In FY17/3, a total of 44 women throughout the Group took maternity leave, and 100% of them returned to work.
Human Asset Data (https://www.nichirei.co.jp/english/csr/pdf/index_csr_data.pdf#page=8)■ Gender Discrepancies in Salary
The Group decides salary based on position and job description and does not set differences based on gender. In addition, gender does not playa role in deciding promotions or salary increases.

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Nichirei Group CSR Report 2018

GovernanceSupport Good Corporate GovernanceCorporate GovernanceOn the basis of its holding company structure, the Group engages in business through its operating companies across a wide range of fields
which include processed foods, marine products, meat and poultry products, logistics and biosciences. The Board of Directors of Nichirei
Corporation (the “Company”) draws up the Group’s business strategy and implements an operating structure which provides supervision ofbusiness executed by the operating companies with the aim of achieving sustainable growth and increasing its corporate value over the medium
to long term.
The Company is well aware that ensuring equitable and highly transparent business practices constitutes a key managerial issue, and accordingly,
under the supervision of the Board of Directors, strives to ensure sound corporate governance, including proper allocation of resources, prompt
decision-making and strict compliance.
The Company adopts the “Company with Board of Company Auditors” structure of governance pursuant to the Companies Act of Japan.
Basic Policy on Corporate Governance (https://www.nichirei.co.jp/english/corpo/management/governance_policy.html)
Corporate Governance Report (https://www.nichirei.co.jp/corpo/pdf/governance_01.pdf) (Only available in Japanese)

Management System● Corporate Governance Structure
General Meeting of Shareholders(Consultative bodies)

Nominating Advisory Committee

Appointment
Answer· Group Human Resources Committee· Group Risk Management Committee

Appointment/dismissal

Board of Directors

Board of Auditors

Ten Directors(including
three Outside Directors)

Five Company Auditors

Supervision

Company Auditors)

Cooperation· Group Director Review Committee· Group Social Contribution Committee· Review Committee· Intellectual Property Management Committee

Audit

Management Committee(Executive officers)

Corporate staff divisions

Operating companies

Corporate Internal
Audit Division· Group Internal Control Committee

Representative
Director and President

Appointment/
dismissal

Cooperation

Audit (including three Outside· Group Environmental Protection Committee· Group Quality Assurance Committee

Appointment/dismissal

Audit

Cooperation

Independent Auditor

Remuneration Advisory Committee

Holding company

Audit
Audit

Corporate Governance, Integrated Report 2018 (https://www.nichirei.co.jp/english/ir/integrated/pdf/P21-22.pdf)■ Election and Term of Office of Directors
The Board of Directors comprises up to 11 members, appointed to one-year terms in order to enhance flexibility in response to changes in businessconditions. Resolutions to appoint directors must be approved by a majority of shareholders, with at least one third of those shareholders who
have voting rights in attendance. To improve transparency and strengthen supervisory functions, three of the current 10 directors are outside
directors. The Board meets at least once a month. The Board of Directors is chaired by the Representative Director and Chairman, who also serves
as an executive officer. Together, the Representative Director and Chairman and the Representative Director and President oversee the Group’s
overall execution of business.

■ Company Auditor System and Role of Board of Company Auditors
Nichirei has adopted the company auditor system. Of the five company auditors, three are outside company auditors, of whom one has experienceat a financial institution, another is an experienced attorney, and the third has worked at a government agency. The Board of Auditors meetsonce a month, in principle, convening additional meetings as necessary. Nichirei has established a framework to enhance the supervisory functionsof company auditors, allowing for the effective use of company auditors, and strengthening the supervisory role of management.

■ Independent Outside Directors and Outside Company Auditors
The Company adheres to its Criteria for Independence when appointing outside directors and outside company auditors designated by theCompany as independent directors/auditors. A vested interest in Nichirei is denied outside directors and their close relatives, as well as outsidecompany auditors and any companies or organizations of which they are directors or that they serve in other important positions.
Reasons for nomination of outside directors: Notice of the 100th Annual General Shareholders Meeting, pages 8–10
(https://www.nichirei.co.jp/english/ir/pdf_file/meeting_100.pdf)
57

Nichirei Group CSR Report 2018

GovernanceSupport Good Corporate Governance● Attendance of Outside Directors and Outside Company Auditors at Meetings of the Board of

Directors or Board of Auditors (FY18/3)
Attendance at Meetings of the Board of
Directors or Board of Auditors

Main Activities

Mami Taniguchi

Attended 18 of 19 meetings of the Board of Directors

Ms. Mami Taniguchi is engaged in research activities, primarily on the themes of diversity management andglobal leadership, and where necessary, provides advice in her professional capacity as a university
professor.

Shizuka Uzawa

Attended 19 of 19 meetings of the Board of Directors

Mr. Shizuka Uzawa has extensive experience as a corporate executive coupled with a wide-ranging
knowledge of financial affairs and accounting, and where necessary, provides advice from the viewpoint ofgroup management.

Mieko Wanibuchi

Attended 18 of 19 meetings of the Board of Directors

Ms. Mieko Wanibuchi has worked in corporate management for many years, and where necessary, provides
advice from perspectives that include the product and service purchasing behaviors of consumers.

Kunitaro Saida

Attended 18 of 19 meetings of the Board of Directors
Attended 15 of 16 meetings of the Board of Auditors

Mr. Kunitaro Saida has a background in the legal world, and in his capacity as a legal professional, where
necessary, makes indications and provides advice on the validity and appropriateness of decision-making.
He also provides advice on internal control systems, business audits, accounting audits, and so on.

Masaaki Okajima

Attended 19 of 19 meetings of the Board of Directors
Attended 15 of 16 meetings of the Board of Auditors

Mr. Masaaki Okajima has considerable experience and extensive knowledge in government, and where
necessary, makes indications and provides advice that is valuable for management. He also provides advice
on internal control systems, business audits, accounting audits, and so on.

Kazuo Nagano

Attended 19 of 19 meetings of the Board of Directors
Attended 16 of 16 meetings of the Board of Auditors

Mr. Kazuo Nagano has experience working as a manager of a financial institution for many years. In his capacity
as a finance professional, where necessary, he makes indications and provides advice that is valuable formanagement. He also provides advice on internal control systems, business audits, accounting audits, and so on.

Category

OutsideDirectors

OutsideCompany
AuditorsName■ Committees for Effective Corporate GovernanceNichirei has set up committees to advise the Board of Directors, to ensure effective corporate governance. The committees include the Nominating
Advisory, Compensation Advisory, Group Human Resources, Group Risk Management, Group Environmental Protection, Group Quality Assurance,
Group Internal Control, Group Director Review, and Group Social Contribution Committees. In addition, to advance the execution of business by
the president, Nichirei has set up the Management, Review, and Intellectual Property Management Committees, an overview of which follows.
Nominating Advisory Committee

Convened by the chairperson twice yearly and as requiredCompensation Advisory Committee

Convened by the chairperson once yearly and as required

The Group Human Resources Committee

Convened by the chairperson twice yearly and as required

The Group Risk Management Committee

Convened by the chairperson twice yearly and as required

The Group Environmental Protection Committee

Convened by the chairperson twice yearly and as required

The Group Quality Assurance Committee

Convened by the chairperson twice yearly and as required

The Group Internal Control Committee

Convened by the chairperson once yearly and as required

The Group Director Review Committee

Convened by the chairperson as required

The Group Social Contribution Committee

Convened by the chairperson once yearly and as requiredManagement Committee

Held weekly on Tuesdays, except the third Tuesday of the month

Review Committee

Convened by the chairperson as requiredIntellectual Property Management Committee

Convened by the chairperson as required■ Internal Audits, Audits by Company Auditors, and Accounting AuditsCompany auditors at the holding company and three core operating companies hold regular liaison conferences, conduct joint audits, and ensure
the effective auditing of Group-wide management. The Management Auditing Division, responsible for internal auditing, conducts business execution
and accounting accounts to verify the status of internal controls across management activities, and offers advice as necessary, in order to ensure
strict compliance and observance of the Group code of conduct, and raise awareness of risk management. In addition, the division conducts facility
audits inspecting the status of production plants, distribution centers, and other facility audits providing appropriate guidance and advice.

■ Officer Remuneration
Design of the remuneration scheme for directors and executive officers incorporates the opinions of a third-party organization. Remuneration
comprises a base remuneration component and a bonus component. Base remuneration is paid at a fixed rate determined in accordance with aremuneration schedule. Bonuses are paid according to the concept of productivity-linked bonuses, based on the results of the Nichirei Group, theperformance-budget achievement rate of the relevant officer’s business area, and an individual qualitative assessment. Outside directors receive
base remuneration only; they are not paid a bonus. Nichirei has established a Remuneration Advisory Committee which meets, in principle, oncea year to deliberate on such topics as the remuneration system, remuneration levels, and the validity of remuneration, before reporting its findings
to the Board of Directors. The committee comprises the Representative Director and President, a company auditor, and outside directors. Officer
remuneration is determined by the Board of Directors. The total amount of remuneration and bonuses paid to directors must be within the limit
resolved at a General Meeting of Shareholders.
Amounts of remuneration, etc. paid to directors and company auditors: Notice of the 100th Annual General
Shareholders Meeting, page 31 (https://www.nichirei.co.jp/ir/pdf_file/soukai/2018_1.pdf) (Only available in Japanese)■ Status of Board of Directors’ Evaluations
Corporate Governance, Integrated Report 2018 (https://www.nichirei.co.jp/english/ir/integrated/pdf/P21-22.pdf)
58

Nichirei Group CSR Report 2018

GovernanceSound Corporate GovernanceRisk Management
Basic Philosophy
The Nichirei Group has formulated a policy for internal control designed to help bring to fruition its management principles, brand statement,
and CSR policy. It has established and implements an internal system to facilitate operational effectiveness and staff ability, ensure the accuracyof financial reports, comply with laws and regulations pertinent to its business, and to protect assets.
With respect to risk management in particular, the Group has set up the Group Risk Management Committee, chaired by the Representative
Director and President, to manage the various risks associated with its business activities, in the most appropriate and rational ways from acomprehensive standpoint, and to maximize the corporate Group’s enterprise value. The committee identifies and evaluates Group-wide risks,
and Nichirei and its business companies respond to these risks on their own accord, based on the established risk management cycle. Important
items are reported to the Board of Directors of Nichirei Corporation, the holding company, which considers the response.
Internal Control (https://www.nichirei.co.jp/english/corpo/management/internal_control.html)
Business Risk, page 16, Annual Securities Report (for the year ended March 31, 2018)(https://www.nichirei.co.jp/ir/pdf_file/yuhohh-pdf/yuho_18.pdf) (Only available in Japanese)
Nichirei’s Value Creation Model, page 7, Integrated Report 2018 (https://www.nichirei.co.jp/english/ir/integrated/pdf/P07-08.pdf)

Management System
Recognizing that the actions of each and every employee are important for preventing various risks from occurring, Nichirei established theCode of Conduct, comprised of 12 articles (revised in 2014) relating to compliance and ethical behavior in areas of the environment, society
and governance. The Company is committed to reducing risks, such as compliance violations, and publicizes the code to raise awareness.
The Group Risk Management Committee identifies and evaluates Group risks, and develops mechanisms for managing risk in the Group. Any
significant risks identified in the risk management process are reported to the Board of Directors of Nichirei Corporation, the holding company, andthe response is discussed.
Educating Employees about the Code of Conduct to Ensure Compliance (https://www.nichirei.co.jp/english/corpo/compliance.html)

Initiatives for Fiscal 2017 (FY18/3)■ Enhanced Business Continuity Planning (BCP) Response for the Logistics Core System
As part of risk management, from February 2018, the Nichirei Logistics Group
worked to strengthen the BCP response for its logistics core system.
The work involved relocating its main data center, which had previously been
overconcentrated in Tokyo, to Western Japan, and building a disaster recovery (DR)DR site(disaster recovery)

Main site

Eastern Japan Data Center
Response to disaster inWestern Japan

Western Japan Data Center

Normal operationssite capable of rapidly restoring the system in the event of a disaster. By realizing adual base system that can switch from the main site to the DR site in the event ofa major disaster, Nichirei Logistics Group is able to quickly proceed with business

Disaster in
Eastern Japan

recovery. Taking about one hour from DR activation to resuming online operations,

Normaloperations

Disaster inWestern Japanevery consideration has been given to preventing customers’ businesses and foodlogistics from being affected under various circumstances. With an aim of also
assisting clients with their business continuity, Nichirei Logistics Group will continue
to implement advanced initiatives as a lifeline for food distribution.

Supportstructure

Normaloperations structure

Conceptual diagram of BCP for the logistics core system

59

Nichirei Group CSR Report 2018

Governance

Ensure Strict Compliance

Compliance
Basic Philosophy
The Nichirei Group, in accordance with the Group’s Management Principles and Code of Conduct, complies with laws and regulations, refrainsfrom dishonest or antisocial corporate activities, and is committed to fair corporate activities befitting a public organ of society.
Formulated in April 1999, Nichirei’s Code of Conduct was focused mainly on Japan. As the company expanded globally, the content of thecode became less suitable. Therefore, in April 2014, Nichirei established a single international version of its Code of Conduct, designed to strengthen
corporate governance for the entire Group and to better ensure legal compliance and ethical business activities. The revision included additionof “respect for human rights” as the top priority, derived in part from the Ten Principles in the four areas of the UN Global Compact. Principles
on preventing corruption, judged to be important from the standpoint of global compliance, were also incorporated, including the prohibitionof insider trading, and involvement in, or dealings with, antisocial forces.
In addition, the Group has established the Nichirei Group Sustainable Supply Chain Policy, which includes matters on compliance, fair trading,and human rights. The Group procures products and services in accordance with this policy, and asks suppliers to assent to and cooperate incomplying with it.

Code of Conduct
Nichirei Group Code of Conduct (Table of Contents, revised April 2014)
1. Compliance with laws and regulations concerning
respect for human rights and labor
2. Environmental protection
3. Compliance with laws and regulations, and internal
regulations
4. Management and preservation of the Company’s
property
5. Prohibition of personal use of Company property
6. Prohibition of insider trading

7. Ensuring the reliability of financial information
8. Management and use of information
9. Prohibition of personal acts conflicting with the Company’s
interests
10. Prohibition of unfair benefits given to, or received from,public officers or business partners
11. Prohibition of involvement in, or trade with, antisocial forces
12. Compliance with, reporting of, and consultations concerning,code of conduct

Management Principles (https://www.nichirei.co.jp/english/corpo/management/rinen.html)
Code of Conduct (https://www.nichirei.co.jp/english/corpo/compliance/regulation.html)
Corporate Governance Report (https://www.nichirei.co.jp/corpo/pdf/governance_01.pdf) (Only available in Japanese)
Sustainable Supply Chain Policy (https://www.nichirei.co.jp/english/csr/supplychain/index.html)

Management System■ Strengthening and Ensuring Compliance AwarenessThe internal regulations of the Nichirei Group clarify the rules necessary for a Group company to be managed in a systematic and effective manner.
They are indispensable for the governance and internal controls of the company. Accordingly, all people working for the Nichirei Group must
properly understand and comply with them. Based on this line of thinking, compliance and anti-corruption initiatives are implemented
company-wide, while the Board of Directors oversees compliance with the Code of Conduct.
Specifically, to ensure that all employees comply with laws, regulations and Nichirei’s articles of incorporation, and act in keeping with corporate
ethics, Nichirei has formulated and distributes a Code of Conduct along with a collection of examples of how the code is to be applied. Moreover,so that the principles and systems of compliance management contained in the Code of Conduct and so on better permeate within the company,
employees and new recruits are provided training using a collection of examples on the Code of Conduct. By learning about the Code of Conduct
based on concrete examples, the aim is to educate and raise awareness for compliance among existing and new employees.

■ Internal Whistleblower Hotline and Consultation Service
Whistleblowing and consultation systems have been introduced allowing employees to report, or seek advice on, actions that violate laws orinternal regulations, or that are ethically questionable. In fiscal 2015 (FY16/3), Nichirei revised its whistleblowing system in response to therequirements of Japan’s new Corporate Governance Code, establishing “a point of contact that is independent of management.” To raiseawareness for the systems, Nichirei created and distributed promotional posters for its workplaces and reminder cards for employees.
Over the past three years, an increasing number of reported cases have involved workplace disputes and harassment. In accordance with
Company policy, all reports received are relayed to top management by the administration office, which also conducts an investigation to confirm
the facts, implements corrective measures, and provides feedback to the person who made the report (when not reported anonymously).
Anonymity is preserved to protect the identity of the person reporting, while the process is carefully managed to ensure there is no retaliation
against, or adverse treatment of, those who are the subject of complaints.
60

Nichirei Group CSR Report 2018

Governance

Ensure Strict Compliance● Number of Whistleblowing Cases, by Type
Mistreatment

Workplace Disputes

Harassment

Compliance-related
Breaches

Other Consultations

Total

FY14/3

1

1

4

2

0

8

FY15/3

0

5

4

0

0

9

FY16/3

0

0

7

2

4

13

FY17/3

6

2

7

1

4

20

FY18/3

6

11

12

3

3

35

Initiatives for Fiscal 2017 (FY18/3)■ Educating Employees about the Code of Conduct to Ensure Compliance
The Nichirei Group seeks to endure and develop as a company that enjoys the confidence of society, based on the high ethical standards of its
officers and employees. To foster a sense of ethics in each and every employee, the Code of Conduct has been included in the employee handbook,along with the Group Management Principles, so that employees can check them at any time. In addition, a guidebook on the use of social media
has been distributed to all employees, and a monthly series of case studies related to the Code of Conduct is published on the Group’s intranet
in a clever format that is easy to read and understand.
Seminars are organized for section managers from all relevant departments in order to raise their awareness of the need for compliance. A
total of 453 people participated in 20 seminars held in FY17/3–FY18/3. The seminars are held for two hours, per person, per year. The seminars
were designed to reaffirm the significance of, and need for, compliance, as well as to review the Group’s compliance-related policies. During
training, participants examined their role as group leaders in ensuring and promoting compliance, including the prevention of harassment.
In addition, the Nichirei Group has been offering e-learning sessions to educate and train employees, based on its in-house educational rules.
A total of 14 sessions were held in FY18/3 covering a variety of topics, including compliance with competition-related laws, prevention of bribery
and corruption, and prevention of harassment. The Nichirei Group is committed to continue providing compliance training.
● E-learning Training Sessions Conducted in Fiscal 2017 (FY18/3)
E-learning Topic

Eligible Participants Actual Participants Participation Rate

1

Food quality, hygiene, and safety assurance (part 1)

5,319

5,062

95.2%

2

Internal controls (part 1)

5,259

5,024

95.5%

3

Personal Information Protection Act

5,257

4,810

91.5%

4

Environment (part 1)

5,241

5,036

96.1%

5

Insider trading

5,242

5,022

95.8%

6

Competition law; bribery and corruption prevention

5,216

5,006

96.0%

7

Intellectual property

5,232

5,053

96.6%

8

My Number system

5,258

4,948

94.1%

9

Power harassment

5,220

4,943

94.7%

10

Internal controls (part 2)

5,222

5,006

95.9%

11

Internal whistleblowing system

5,226

5,137

98.3%

12

Environment (part 2)

5,227

5,129

98.1%

13

Food quality, hygiene, safety assurance (part 2)

5,196

5,082

97.8%

14

Information security

5,204

5,114

98.3%

■ Bribery and Corruption
During FY18/3, no employees were penalized for bribery or other acts of corruption. Moreover, no payments were made for fines relating tobribery or other acts of corruption.

61

Nichirei Group CSR Report 2018

External Evaluations

External Evaluations
The Nichirei Group has been rated highly by various external organizations as a corporate group that is enhancing communication, and whichshares its CSR activities to a wide range of stakeholders.
By conducting regular reviews based on the categories and results of these external evaluations, the Group is making further improvements
to its activities and reporting.

Incorporation of ESG Index

Assessment of the Nichirei GroupFTSE4Good Index Series

Has been included for 16 consecutive years since FY04/3.

FTSE Blossom Japan Index

Has been included for two consecutive years since FY18/3.

MSCI Japan ESG SelectHas been included for two consecutive years

Leaders Index

since FY18/3.

MSCI Japan Empowering

Has been included for two consecutive years

Women Index (WIN)since FY18/3.

SNAM Sustainability Index

Has been included for four consecutive years since FY15/3.

External Assessment of Sustainability

Assessment of the Nichirei GroupIn a survey conducted by CDP on initiatives for climate

CDP Climate Change Programchange, Nichirei scored a C (FY18/3).
50.00 points / Ranked 2nd among major foodBloomberg ESG Disclosure Score

companies in Japan (FY18/3)
Health and Productivity Management

Nichirei was evaluated as a corporation that engages

Organization White 500

in managing employee health from a strategic and(FY18/3, FY19/3)

management perspective.

Tokyo Stock Exchange 6th Corporate Value Improvement

Excellence Award (FY18/3)

Award
Green Logistics Partnership Conference

Outstanding Business Award (FY18/3)

13th Toyo Keizai CSR Ranking (FY18/3)

Ranked 176/1,413 companies (494.4 points)

21st Nikkei Environmental Management Survey

Ranked 244/395 manufacturing companies(FY18/3)

Ranked 22/40 food companies

1st Best Practice Awards for Consumer-Oriented

Received the CAA Commissioner AwardManagement(FY19/3)

62

Nichirei Group CSR Report 2018

Third-party Opinion

Third-party Opinion
Nichirei Corporation invited Professor Mika Takaoka of Rikkyo University to read, and offer her opinion on, the Nichirei Group CSR Report 2018.

■ Third-party Opinion of the Nichirei Group CSR Report 2018
Evaluation
This is an excellent report providing an account of the social responsibility activities of the Nichirei
Group—whose Group mission is to “Focus on Lifestyles, and Provide True Satisfaction”—with a focus on ESG(environment, social, governance). In this day and age, it almost goes without saying that a social responsibilityof companies is to give consideration to the global environment and to contribute to the creation of asustainable society. Another important element of social responsibility, though, is to maintain business
continuity and improve corporate value by putting effort into sound corporate governance. The Nichirei Group
has laid a highly transparent governance structure, such as appointing outside directors to three of its 10
director positions, and has established a single international version of its Code of Conduct in an attempt tostrengthen its compliance as a global business entity. Japanese companies are often described as having
immature governance, but this description is not true of the Nichirei Group. In this respect, I commend the
Nichirei Group for its keen awareness of social responsibility.
What I would like to commend most in this report is that, of the eight items in the Nichirei Pledge—theGroup’s basic CSR policy revised in April 2017—two of the items have been clearly positioned as priority
objectives for the Group, namely, “provide safe products and services” and “maintain a sustainable supply

Mika Takaoka
Professor
College of Business
Rikkyo University

chain.” A focus on materiality would not be possible unless the Group’s vision and the expectations of society, along with their connection with
CSR, had been well defined. As mentioned in the President’s Message, providing safe products and services is the most basic and important value
provided by the Nichirei Group, and achieving it requires a sustainable supply chain. By identifying the top-priority CSR items, growth of the
Nichirei Group and promotion of CSR are now on the same wavelength. Management itself has developed into CSR management, and for thisI would like to commend Nichirei.
Another point worthy of special mention is the expansion of “Employee-related Data, Environmental Data” posted on the website. Up until
the previous fiscal year, a three-year history of employee-related data had been published, such as the number of employees hired and the numberof employees taking childcare leave. But from this fiscal year, five years’ worth of data has been released. This further progress in the Nichirei
Group’s disclosure of information is highly commendable.
Expectations for the Future
I get the impression that the Nichirei Group has taken huge steps forward in CSR over the last three years. For next fiscal year, the Group should
consider publishing an action plan for initiatives in line with its eight CSR themes. The plan should include the goals and details of those initiatives,
key performance indicators, measurable targets, and levels of achievement. Looking at the “Employee-related Data, Environmental Data,” theratio of female managers appears to be rising steadily, and there should be no problem in setting a target value. I hope that, by adopting aplan-do-check-act (PDCA) cycle, the Nichirei Group can develop a framework for making continuous improvements to its CSR activities.

Response to Third-party Opinion
I would like to express my sincere appreciation to Professor Takaoka for her evaluation of our Group’s steadyefforts, such as those for building a highly transparent governance structure and for enhancing information
disclosure.
In our Group’s next Medium-Term Management Plan from fiscal 2019 (FY20/3), while delving deeper
into our two priority objectives, we plan to establish medium- and long-term ESG targets once future external
environmental forecasts, management strategies and so on have been discussed by the management team.
As for publishing a PDCA cycle of our CSR activities—which the professor has urged us to do for sometime—we will consider this as a way for giving readers an accurate understanding of our activities, as partof our reporting on the background of individual target setting and the execution of measures to achieve

Takumi Taguchi

those targets.
Through upholding the Nichirei Pledge—our Group’s basic CSR policy—we will continue holding dialogue
with various stakeholders, and we will promote management that contributes both to realization of asustainable society and sustainable growth for our Group.

63

Executive Officer andVice Director
CSR Department
Nichirei Corporation

Nichirei Group CSR Report 2018

GRI Standards

GRI Standards Contents Index
This report refers to the contents of the GRI Standards (2016). Items indicated with the ¨ mark correspond to “Top-priority Important Items.”
Contents indicated with * are only available in Japanese.

GRI
Standard

Reference Page
(Booklet/PDF)

Disclosure

Reference Page
(Web)

General Disclosures
102: General Disclosures (2016)
102-1

Name of the organization

Company Information (Integrated Report p. 56)

Corporate Data

102-2

Activities, brands, products, andservices

Overview of Nichirei Group (Integrated Report
pp. 5–6)

Nichirei is Such Company

102-3

Location of headquarters

Company Information (Integrated Report p. 56)

Corporate Data

102-4

Location of operations

Company Information (Integrated Report p. 56)

Each Site/Group Company List*

102-5

Ownership and legal form

Overview of Nichirei Group (Integrated Report pp.
5–6)

Corporate Data

102-6

Markets served

Overview of Nichirei Group (Integrated Report pp.
5–6)

Each Site/Group Company List*

102-7

Scale of the organization

Overview of Nichirei Group (Integrated Report pp.
5–6)

Corporate Data

102-8

Information on employees and other Labor Practices (CSR Report p. 53)
workers

Employee-related Data

102-9

Supply chain

Supply Chain Management (CSR Report pp. 43–44)
Nichirei’s Value Creation Model (Integrated Report
pp. 7–8)
Maintain a Sustainable Supply Chain(Integrated Report pp. 17–18)

Sustainable Supply Chain Policy

102-10Significant changes to theorganization and its supply chain

N/A—

102-11

Precautionary principle or approach

Risk Management (CSR Report p. 59)
Supply Chain Management (CSR Report p. 44)

Corporate Governance > Risk
Management Structure102-12External initiatives

President’s Message (CSR Report p. 3)
Supply Chain Management (CSR Report p. 44)—

102-13

Membership of associations

Product Responsibility (CSR Report p. 41)

Compliance > Industry
Organizations

102-14

Statement from senior decisionmakerPresident’s Message (CSR Report p. 3)—

102-15Key impacts, risks, and opportunities Nichirei’s Value Creation Model (Integrated Report
pp. 7–8)
Overview (Integrated Report pp. 29, 31, 33, 35, 36)

Securities Report*
IR Library > Presentation Materials

102-16

Values, principles, standards, andnorms of behavior

Compliance102-17

Mechanisms for advice and concerns Compliance (CSR Report p. 60)
about ethics

Nichirei Group Company Management Principles(Integrated Report p. 1)
Promoting CSR Management in the Nichirei Group(CSR Report p. 4)

Compliance102-18Governance structure

Corporate Governance (CSR Report p. 57)

Corporate Governance Report*

102-19Delegating authority

Corporate Governance (CSR Report p. 57)
Promoting CSR Management in the Nichirei Group(CSR Report p. 6)
Corporate Governance (Integrated Report pp.
21–22)

Corporate GovernanceCorporate Governance Report*
CSR Structure
Securities Report*

102-20Executive-level responsibility for
Corporate Governance (CSR Report p. 57)
economic, environmental, and social Promoting CSR Management in the Nichirei Group
topics(CSR Report p. 6)
Environmental Management (CSR Report p. 9)
Product Responsibility (CSR Report p. 35)
Supply Chain Management (CSR Report p. 43)
Occupational Safety and Health (CSR Report p. 51)
Risk Management (CSR Report p. 59)
Corporate Governance (Integrated Report pp.
21–22)

Corporate GovernanceCorporate Governance Report*
CSR Structure
Securities Report*

I

Nichirei Group CSR Report 2018

GRI Standards
GRI
Standard

Reference Page
(Booklet/PDF)

Disclosure

Reference Page(Web)

102-21

Consulting stakeholders on
Corporate Governance (CSR Report p. 57)
economic, environmental, and social Promoting CSR Management in the Nichirei Group
topics(CSR Report pp. 6–7)

Corporate GovernanceCorporate Governance Report*
CSR Structure
Securities Report*

102-22Composition of the highest
Corporate Governance (CSR Report p. 57)
governance body and its committees Promoting CSR Management in the Nichirei Group(CSR Report pp. 6–7)

Corporate GovernanceCorporate Governance Report*
CSR Structure
Securities Report*

102-23Chair of the highest governancebody

Corporate Governance (CSR Report p. 57)

Corporate GovernanceCorporate Governance Report*
CSR Structure
Securities Report*

102-24

Nominating and selecting thehighest governance body

Corporate Governance (CSR Report p. 57)

Corporate Governance102-25

Conflicts of interest

Corporate Governance (CSR Report p. 57)

Corporate GovernanceCorporate Governance Report*
Corporate Governance > Criteria
for Independence
Securities Report*

102-26

Role of highest governance body in Promoting CSR Management in the Nichirei Groupsetting purpose, values, and strategy (CSR Report p. 6)
Environmental Management (CSR Report p. 9)
Product Responsibility (pp. 34–35)
Supply Chain Management (CSR Report p. 43)
Contributions to Society (CSR Report p. 46)
Fundamental Policy on Human Resources (CSR
Report p. 50)
Corporate Governance (CSR Report p. 57)

Corporate Governance Report*
Corporate Governance102-27

Collective knowledge of highest
governance body

Promoting CSR Management in the Nichirei Group(CSR Report p. 6)
Nichirei Integrated Report (all pages)—

102-28

Evaluating the highest governancebody’s performance

Corporate Governance (Integrated Report p. 22)

Corporate GovernanceInternal Control
Corporate Governance Report*

102-29Identifying and managing economic, Risk Management (CSR Report p. 59)
environmental, and social impacts
Nichirei’s Value Creation Model (Integrated Report
pp. 7–8)
ESG Initiatives (Integrated Report pp. 13–14)

Corporate Governance102-30Effectiveness of risk management
processes

Corporate Governance102-31

Review of economic, environmental, Promoting CSR Management in the Nichirei Groupand social topics(CSR Report p. 6)
Corporate Governance (CSR Report pp. 57–58)
Corporate Governance (Integrated Report
pp. 21–22)

Corporate Governance102-32Highest governance body’s role insustainability reporting

CSR Management Structure (CSR Report p. 6)
Corporate Governance (CSR Report pp. 57–58)
Corporate Governance (Integrated Report
pp. 21–22)

Corporate Governance
The Nichirei Pledge
Working to Make Our
Communities More Sustainable102-33

Communicating critical concerns

CSR Management Structure (CSR Report p. 6)
Corporate Governance (CSR Report pp. 57–58)

Corporate Governance102-34Nature and total number of criticalconcerns

There were no significant cases of violations of laws
or regulations, etc.

—

102-35

Remuneration policies

Corporate Governance (CSR Report p. 58)

Corporate Governance Report*

102-36

Process for determining
remuneration

Corporate Governance (CSR Report p. 58)

Corporate Governance Report*

102-37

Stakeholders’ involvement inremuneration

Corporate Governance (CSR Report p. 58)

Corporate Governance Report*

102-38Annual total compensation ratio——

102-39Percentage increase in annual totalcompensation ratio——

102-40

List of stakeholder groups

Promoting CSR Management in the Nichirei Group(CSR Report p. 7)

Management Principles

Risk Management (CSR Report p. 59)

II

Nichirei Group CSR Report 2018

GRI Standards
GRI
Standard

Reference Page
(Booklet/PDF)

Disclosure

Reference Page
(Web)

102-41

Collective bargaining agreements—

Labor union activities; labormanagement cooperation

102-42

Identifying and selecting
stakeholders

Promoting CSR Management in the Nichirei Group(CSR Report p. 7)—

102-43

Approach to stakeholder
engagement

Promoting CSR Management in the Nichirei Group(CSR Report p. 7)—

102-44

Key topics and concerns raised

Human Rights (Labor-management Relations) (CSR
Report p. 54)
Compliance (CSR Report pp. 60–61)
Third-Party Opinion (CSR Report p. 63)

Creating an Employee-Focused
Workplace

102-45

Entities included in the consolidated
financial statements—

Securities Report*

102-46

Defining report content and topic
Boundaries

Editorial Policy (CSR Report pp. 1–2)—

102-47

List of material topics

Promoting CSR Management in the Nichirei Group(CSR Report pp. 4–5)—

102-48

Restatements of information

N/A—

102-49Changes in reporting

Promoting CSR Management in the Nichirei Group(CSR Report pp. 4–5)—

102-50

Reporting period

Editorial Policy (CSR Report p. 1)—

102-51

Date of most recent report

Editorial Policy (CSR Report p. 1)—

102-52

Reporting cycle

Editorial Policy (CSR Report p. 1)—

102-53

Contact point for questions
regarding the report

Editorial Policy (CSR Report p. 1)—

102-54Claims of reporting in accordancewith the GRI Standards——

102-55

GRI content index

GRI Standards Contents Index (pp. I–VIII)—

102-56External assurance——

201: Economic Performance (2016)
201-1

Direct economic value generated
and distributed

Financial/Non–financial Highlights (Integrated Report Securities Report*
pp. 37–38)
General Shareholders Meeting >Notices

201-2

Financial implications and other risks Environmental Management (CSR Report pp. 8–15)
and opportunities due to climate
Initiatives for Energy and Climate Change (CSR
changeReport p. 18)
Nichirei’s Value Creation Model (Integrated Report
pp. 7–8)

Securities Report > business risks*

201-3

Defined benefit plan obligations and —other retirement plans

Securities Report*

201-4

Financial assistance received fromgovernment

Initiatives for Energy and Climate Change > Use of
Natural Refrigerants (CSR Report p. 20)—

202: Market Presence (2016)
202-1

Ratios of standard entry level
wage by gender compared to local
minimum wage

—

—

202-2

Proportion of senior management
hired from the local community——

203: Indirect Economic Impacts (2016)
203-1

Infrastructure investments andservices supported

—

—

203-2

Significant indirect economic impacts ——204: Procurement Practices (2016)
204-1

Proportion of spending on local
suppliers——

205: Anti-corruption (2016)
205-1

Operations assessed for risks related
to corruption

Risk Management (CSR Report p. 59)
Compliance (CSR Report pp. 60–61)

—

205-2

Communication and training
about anti-corruption policies andproceduresCompliance (CSR Report pp. 60–61)

Compliance

III

Nichirei Group CSR Report 2018

GRI Standards
GRI
Standard
205-3

Reference Page
(Booklet/PDF)

Disclosure
Confirmed incidents of corruption
and actions taken

Reference Page
(Web)

Compliance (CSR Report p. 61)
During FY18/3, no employees were penalized forbribery or other acts of corruption. Moreover, nopayments were made for fines relating to bribery orother acts of corruption.

—

Compliance (CSR Report p. 61)—

206: Anti-competitive Behavior (2016)
206-1

Legal actions for anti-competitive
behavior, anti-trust, and monopoly
practices301: Materials (2016)
301-1

Materials used by weight or volume

Environmental Management (CSR Report p. 12)

Employee-related Data
Environmental Data

301-2

Recycled input materials used

—

—

301-3

Reclaimed products and theirpackaging materials——

302: Energy (2016)
302-1

Energy consumption within theorganization

Environmental Management (CSR Report p. 12)

Employee-related Data
Environmental Data

302-2

Energy consumption outside of theorganization

—

—

302-3

Energy intensity

—

—

302-4

Reduction of energy consumption

Environmental Management (CSR Report pp. 10–12) Initiatives in manufacturing andInitiatives for Energy and Climate Change (CSR
processing facilities
Report pp. 18–24)
Initiatives at cold storage facilities,
logistics centers

302-5

Reductions in energy requirements
of products and services

Initiatives for Energy and Climate Change (pp.
Initiatives in retail stores and
18–24)
customer-related areas
Initiatives in Products and Services (CSR Report p. 31)

303: Water (2016)
303-1

Water withdrawal by source

Initiatives for Water Resource Conservation (CSR
Report p. 25)

Employee-related Data
Environmental Data

303-2

Water sources significantly affectedby withdrawal of water

—

—

303-3

Water recycled and reused——

Biodiversity Initiatives (CSR Report p. 27)

Initiatives at headquarters,
our offices

304: Biodiversity (2016)
304-1

Operational sites owned, leased,managed in, or adjacent to,protected areas and areas of highbiodiversity value outside protected
areas

304-2

Significant impacts of activities,
Biodiversity Initiatives (CSR Report pp. 26–27)
products, and services on biodiversity

Initiatives in retail stores andcustomer-related areas

304-3

Habitats protected or restored

Biodiversity Initiatives (CSR Report pp. 26–27)

Initiatives at headquarters,
our offices

304-4

IUCN Red List species and national
conservation list species with
habitats in areas affected byoperations——

305: Emissions (2016)
305-1

Direct (Scope 1) GHG emissions

Environmental Management (CSR Report p. 12)
Initiatives for Energy and Climate Change (CSR
Report p. 18)

—

305-2

Energy indirect (Scope 2) GHG
emissions

Environmental Management (CSR Report p. 12)
Initiatives for Energy and Climate Change (CSR
Report p. 18)

—

305-3

Other indirect (Scope 3) GHG
emissions

Initiatives for Energy and Climate Change (CSR
Report p. 22)

—

305-4

GHG emissions intensity

Environmental Management (CSR Report p. 11)

Nichirei Group CO2 Emissions

305-5

Reduction of GHG emissions

Environmental Management (CSR Report p. 11)

Nichirei Group CO2 Emissions

IV

Nichirei Group CSR Report 2018

GRI Standards
GRI
Standard

Reference Page
(Booklet/PDF)

Disclosure

Reference Page
(Web)

305-6

Emissions of ozone-depleting
substances (ODS)

Initiatives for Energy and Climate Change >Preventing Refrigerant Leaks to Boost Operating
Efficiency, Use of Natural Refrigerants (CSR Reportp. 20)—

305-7

Nitrogen oxides (NOx), sulfur oxides(SOx), and other significant air
emissions

Emissions into the Atmosphere (CSR Report p. 28)
Environmental Management (CSR Report p. 12)

Employee-related Data
Environmental Data

306: Effluents and Waste (2016)306-1

Water discharge by quality anddestination

Environmental Management (CSR Report pp. 11–12) Employee-related DataManagement of Wastewater, Waste Matter, andEnvironmental Data
Chemical Substances (CSR Report pp. 29–30)

306-2

Waste by type and disposal method

Environmental Management (CSR Report pp. 11–12) Employee-related DataManagement of Wastewater, Waste Matter, andEnvironmental Data
Chemical Substances (CSR Report pp. 29–30)
Initiatives in manufacturing andprocessing facilities

306-3

Significant spills

Environmental Management (CSR Report p. 15)
In FY18/3, there were no legal violations orenvironment-related incidents that had a serious
impact on the environment.

—

306-4

Transport of hazardous waste

N/A

—

306-5

Water bodies affected by water
discharges and/or runoff

N/A—

307: Environmental Compliance (2016)
307-1

Non-compliance with environmental Environmental Management (CSR Report p. 15)
laws and regulations
In FY18/3, there were no legal violations orenvironment-related incidents that had a serious
impact on the environment.

—¨ 308: Supplier Environmental Assessment (2016)
103-1

Explanation of the material topic and Promoting CSR Management in the Nichirei Group
its Boundary(CSR Report pp. 4–5)

—

103-2

The management approach and its
components

Promoting CSR Management in the Nichirei Group(CSR Report pp. 4–5)
Supply Chain Management (CSR Report pp. 43–44)

—

103-3

Evaluation of the management
approachPromoting CSR Management in the Nichirei Group(CSR Report pp. 4–5)
Supply Chain Management (CSR Report pp. 43–44)

—

308-1

New suppliers that were screenedusing environmental criteria

Initiatives for Sustainable Raw Ingredients (CSR
Report pp. 16–17)
Supply Chain Management (CSR Report pp. 43–44)

—

308-2

Negative environmental impacts inthe supply chain and actions taken

Initiatives for Sustainable Raw Ingredients (CSR
Report pp. 16–17)
Supply Chain Management (CSR Report pp. 43–44)

Initiatives in production regions

401: Employment (2016)
401-1

New employee hires and employee
turnoverLabor Practices (CSR Report p. 53)

Employee-related Data
Environmental Data

401-2

Benefits provided to full-time
employees that are not provided totemporary or part-time employees

Human Asset Cultivation and Diversity (CSR Report
pp. 55–56)

Employee-related Data
Environmental Data

401-3

Parental leave

Human Asset Cultivation and Diversity (CSR Report
pp. 55–56)

Employee-related Data
Environmental Data——

Occupational Safety and Health (CSR Report p. 51)

Creating an Employee-Focused
Workplace402: Labor/Management Relations (2016)
402-1

Minimum notice periods regarding
operational changes

403: Occupational Health and Safety (2016)403-1

Workers representation in formal
joint management–worker healthand safety committees

403-2

Types of injury and rates of injury,
Occupational Safety and Health (CSR Report p. 51)
occupational diseases, lost days, andabsenteeism, and number of workrelated fatalities

V

Employee-related Data
Environmental Data

Nichirei Group CSR Report 2018

GRI Standards
GRI
Standard

Reference Page
(Booklet/PDF)

Disclosure

Reference Page
(Web)

403-3

Workers with high incidence orhigh risk of diseases related to theiroccupation

—

—

403-4

Health and safety topics covered
in formal agreements with tradeunionsOccupational Safety and Health (CSR Report p. 51)

Creating an Employee-Focused
Workplace404: Training and Education (2016)
404-1

Average hours of training per year
per employee

Product Responsibility (CSR Report p. 42)

—

404-2

Programs for upgrading employee
skills and transition assistanceprograms

Product Responsibility (CSR Report p. 42)
Human Asset Cultivation and Diversity (CSR Reportp. 56)

Hiring and Promotion of Human
AssetsNichirei Logistics Group Training
System*404-3

Percentage of employees receiving
regular performance and careerdevelopment reviews

Human Asset Cultivation and Diversity (CSR Reportp. 56)—

405: Diversity and Equal Opportunity (2016)405-1

Diversity of governance bodies andemployees

Labor Practices (CSR Report p. 53)
Human Asset Cultivation and Diversity (CSR Report
pp. 55–56)

Employee-related Data
Environmental Data
Employee-related Data
Environmental Data > Female
Managers Ratio

405-2

Ratio of basic salary andremuneration of women to men

Human Asset Cultivation and Diversity (CSR Reportp. 56)—

Supply Chain Management (CSR Report pp. 43–44)
Human Rights Initiatives (CSR Report p. 45)
Human Rights (Labor-management Relations) (CSR
Report p. 54)
Compliance (CSR Report pp. 60–61)

Human Rights

406: Non-discrimination (2016)406-1

Incidents of discrimination andcorrective actions taken

407: Freedom of Association and Collective Bargaining (2016)
407-1

Operations and suppliers in which
the right to freedom of associationand collective bargaining may be
at risk

Supply Chain Management (CSR Report pp. 43–44)
Human Rights Initiatives (CSR Report p. 45)
Human Rights (Labor-management Relations) (CSR
Report p. 54)
Compliance (CSR Report pp. 60–61)

Human Rights

408: Child Labor (2016)
103-1

Explanation of the material topic and Promoting CSR Management in the Nichirei Group
its Boundary(CSR Report pp. 4–5)

—

103-2

The management approach and its
components

Promoting CSR Management in the Nichirei Group(CSR Report pp. 4–5)
Human Rights Initiatives (CSR Report p. 45)
Human Rights (Labor-management Relations) (CSR
Report p. 54)

—

103-3

Evaluation of the management
approachPromoting CSR Management in the Nichirei Group(CSR Report pp. 4–5)
Human Rights Initiatives (CSR Report p. 45)
Human Rights (Labor-management Relations) (CSR
Report p. 54)

—

408-1

Operations and suppliers at
significant risk for incidents of childlabor

Supply Chain Management (CSR Report p. 43–44)
Human Rights Initiatives (CSR Report p. 45)
Human Rights (Labor-management Relations) (CSR
Report p. 54)

—

103-1

Explanation of the material topic and Promoting CSR Management in the Nichirei Group
its Boundary(CSR Report pp. 4–5)

—

103-2

The management approach and its
components—

409: Forced or Compulsory Labor (2016)

Promoting CSR Management in the Nichirei Group(CSR Report pp. 4–5)
Human Rights Initiatives (CSR Report p. 45)
Human Rights (Labor-management Relations) (CSR
Report p. 54)

VI

Nichirei Group CSR Report 2018

GRI Standards
GRI
Standard

Reference Page
(Booklet/PDF)

Disclosure

Reference Page
(Web)

103-3

Evaluation of the management
approachPromoting CSR Management in the Nichirei Group(CSR Report pp. 4–5)
Human Rights Initiatives (CSR Report p. 45)
Human Rights (Labor-management Relations) (CSR
Report p. 54)

—

409-1

Operations and suppliers at
Supply Chain Management (CSR Report pp. 43–44)
significant risk for incidents of forced Human Rights Initiatives (CSR Report p. 45)
or compulsory labor
Human Rights (Labor-management Relations) (CSR
Report p. 54)—

410: Security Practices (2016)
410-1

Security personnel trained in humanrights policies or procedures

Human Rights Initiatives (CSR Report p. 45)
Human Rights (Labor-management Relations) (CSR
Report p. 54)
Compliance (CSR Report pp. 60–61)

Compliance——

411: Rights of Indigenous Peoples (2016)
411-1

Incidents of violations involving
rights of indigenous peoples

412: Human Rights Assessment (2016)
412-1

Operations that have been subject
to human rights reviews or impact
assessments

Human Rights Initiatives (CSR Report p. 45)

—

412-2

Employee training on human rights
policies or procedures

Human Rights (Labor-management Relations) (CSR
Report p. 54)

Compliance412-3

Significant investment agreements
and contracts that include humanrights clauses or that underwent
human rights screening——

413: Local Communities (2016)413-1

Operations with local community
engagement, impact assessments,
and development programs

Promoting CSR Management in the Nichirei Group(CSR Report p. 7)

Initiatives at headquarters,
our offices

413-2

Operations with significant actualand potential negative impacts on
local communities——¨ 414: Supplier Social Assessment (2016)
103-1

Explanation of the material topic and Promoting CSR Management in the Nichirei Group
its Boundary(CSR Report pp. 4–5)

—

103-2

The management approach and its
components

Promoting CSR Management in the Nichirei Group(CSR Report pp. 4–5)
Supply Chain Management (CSR Report pp. 43–44)
Human Rights Initiatives (CSR Report p. 45)

—

103-3

Evaluation of the management
approachPromoting CSR Management in the Nichirei Group(CSR Report pp. 4–5)
Supply Chain Management (CSR Report pp. 43–44)
Human Rights Initiatives (CSR Report p. 45)

—

414-1

New suppliers that were screenedusing social criteria

Supply Chain Management (CSR Report pp. 43–44)

Human Rights

414-2

Negative social impacts in the supply Supply Chain Management (CSR Report pp. 43–44)
chain and actions taken
Human Rights Initiatives (CSR Report p. 45)—

415: Public Policy (2016)
415-1

Political contributions——¨ 416: Customer Health and Safety (2016)
103-1

Explanation of the material topic and Promoting CSR Management in the Nichirei Group
its Boundary(CSR Report pp. 4–5)

—

103-2

The management approach and its
components

Promoting CSR Management in the Nichirei Group(CSR Report pp. 4–5)
Product Responsibility (CSR Report pp. 38–40)
Human Rights Initiatives (CSR Report p. 45)

—

103-3

Evaluation of the management
approachPromoting CSR Management in the Nichirei Group(CSR Report pp. 4–5)
Product Responsibility (CSR Report pp. 38–40)
Human Rights Initiatives (CSR Report p. 45)—

VII

Nichirei Group CSR Report 2018

GRI Standards
GRI
Standard

Disclosure

Reference Page
(Booklet/PDF)

Reference Page
(Web)

416-1

Assessment of the health and safety
impacts of product and service
categories

Product Responsibility (CSR Report pp. 34–42)

Nichirei Foods Three Promises*
Quality Assurance System

416-2

Incidents of non-complianceconcerning the health and safety
impacts of products and services

Product Responsibility (CSR Report p. 42)—¨ 417: Marketing and Labeling (2016)
103-1

Explanation of the material topic and Promoting CSR Management in the Nichirei Group
its Boundary(CSR Report pp. 4–5)

—

103-2

The management approach and its
components

Promoting CSR Management in the Nichirei Group(CSR Report pp. 4–5)
Product Responsibility (CSR Report pp. 38–42)

—

103-3

Evaluation of the management
approachPromoting CSR Management in the Nichirei Group(CSR Report pp. 4–5)

—

417-1

Requirements for product andservice information and labeling

Product Responsibility (CSR Report pp. 38–40)

The Nichirei Group’s guaranteeof quality is displayed on productpackaging

417-2

Incidents of non-complianceconcerning product and service
information and labeling

Product Responsibility (CSR Report pp. 40)

—

417-3

Incidents of non-complianceconcerning marketing
communications

Product Responsibility (CSR Report p. 40)—

Substantiated complaints concerning Product Responsibility (CSR Report p. 42)
breaches of customer privacy andlosses of customer data—

418: Customer Privacy (2016)418-1

419: Socioeconomic Compliance (2016)
419-1

Non-compliance with laws andregulations in the social andeconomic area

Compliance (CSR Report p. 61)

VIII

—

Nichirei Group CSR Report 2018