Nichirei GroupCSR Report 2020NICHIREI CORPORATION

Contents

Contents
CONTENTS■ Message from the Boardeof Directors

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■ The Nichirei Pledge

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■ Creating New Value for Customers
Creating New Value for Customers
Innovation■ Provide Safe Products and Services
Product Responsibility

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■ Maintain a Sustainable Supply Chain
Supply Chain Management

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Human Rights Initiatives

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Environmental Management

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Initiatives for Sustainable Raw Ingredients

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Initiatives for Energy and Climate Change

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■ Reduce Environmental Impact

Initiatives for Water Resource Conservation

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77

Initiatives for Biodiversity Conservation

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Emissions into the Atmosphere

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Management of Wastewater, Waste Matter,and Chemical Substances

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Initiatives in Products and Services

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Processing Environmental Complaints

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Long-term CO₂ emission reduction target

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92

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■ Foster Cooperative Relations with Communities
Contributions to Society■ Continually Enhance our Workplaces
Fundamental Policy on Human Resources

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Occupational Safety and Health

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Labor Practices

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Human Rights

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Human Asset Cultivation and Diversity

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■ Support Good Corporate GovernanceCorporate Governance

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Risk Management

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■ Ensure Strict Compliance
Compliance

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■ Report Archives

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■ ESG Navigation

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■ ESG-related Policies

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■ ESG Data

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■ External Review

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■ Stakeholder Engagement

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CSR/Environmental Practices

Message from the Board of Directors“We are working to meet the expectations of all stakeholders while fulﬁlling the Nichirei Pledge to makeour communities more sustainable.”

Representative Director andPresident
Kenya Okushi

Underpinning all Nichirei Group business activities is our management philosophy: Focus on Lifestyles and Provide True Satisfaction. Understanding needs throughout theworld, creating and providing valuable products and services that satisfy customers is our purpose and the reason we exist.
In April 2019, Nichirei launched a new medium-term business plan WeWill 2021, which was formulated based on the aforementioned philosophy.
The plan was devised to indicate our intention to create a distinctive future for ourselves. It is the ﬁrst step to realize the goals outlined in our revised management
principles and in the formulation of long-term management goals toward 2030. Both are designed to realize sustainable growth by creating value that is unique to Nichirei.
To achieve these goals, we must not be afraid of making mistakes and focus on the importance of taking on new challenges.
Nichirei has resources in a wide range of food-related areas, from ingredient procurement to logistics. Coordinating these resources to realize a sustainable society should
enable us to change our existing proﬁt structure and increase economic value, while at the same time creating social value in addition.
As Nichireiʼs president, I cannot emphasize too strongly that, regardless of how severely the social environment may change, our aim is to be a Company that continues to
do business for the next 100 years by leveraging our ability to respond ﬂexibly and to continue creating distinctive Nichirei products and services that meet the needs ofsociety.

Previous Plan (FY2017–2019) Results and Issues* Fiscal years (FY) indicate years ended March 31.

The basic policies promoted under the previous medium-term business plan were to improve domestic business earnings capabilities and grow overseas business and tocreate operational innovations and new business development targeting medium- to long-term growth in both domestic and overseas businesses.
In the food industry, food-related needs have continued to diversify as demand had grown for simpler preparation and healthier choices, while at the same time labor,
distribution and ingredient costs have risen, due to labor shortages.
Meanwhile, in the food distribution industry, we have seen increases in cargo handling expenses, vehicle procurement costs and electricity charges. This has been amid atrend toward facility expansion, driven by increased product handling, due to robust demand for storage.
During the previous plan, in the processed foods business, we concentrated management resources on our core processed chicken products and rice products. We focused
our eﬀorts on product development and sales activities, while striving to achieve continuous productivity improvements and to cut costs. All of this enabled us to
substantially increase proﬁt margins.
Additionally, in the logistics business, earnings grew steadily through corporate structure enhancements and overseas business expansion.
As a result, in the ﬁnal ﬁscal year of the previous business plan, net sales increased 2.1% compared to the previous period, to ¥580.1 billion; the operating income declined
1.3% compared to the previous period, to ¥29.5 billion; and the ordinary income decreased 2.6% compared to the previous period, to ¥29.9 billion.
Further, we recorded extraordinary income associated with asset securitization. This resulted in the proﬁt attributable to owners of the parent increasing 4.4% compared tothe previous period, to ¥19.9 billion.
We recognize that the overhaul of our proﬁt structure and further expansion in overseas business are major issues facing Nichirei. Thus we must achieve higher proﬁt levels
by strengthening our ability to respond to changes in the external environment as well as rising costs. So we plan to work on more speciﬁc measures to expand the scale ofour overseas business.

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A New Vision
In 2005, the Nichirei Group transitioned to a holding company structure. At present, each Group company makes the most of its existence as an independent entity.
However, in recent years social issues have become increasingly complex and responses to customer demands are becoming diﬃcult to resolve in individual businessdomains. We thus believe we can create a new business model as well as the new products and services necessary for society and customers by combining Nichirei Group
R&D, ingredient procurement, processing, quality assurance and logistics resources.
In order to enhance the cohesive power of the Group and utilize Group capabilities to demonstrate our comprehensive strengths, we decided to create a new Group vision.
As it says,“We will continue to support good eating habits and health by leveraging our state-of-the-art manufacturing practices that optimize natureʼsbounty, along with our cutting-edge logistics services.”
The following three initiatives are integral to realizing this vision:
1. Focus on growth
Even in a business environment where the future is uncertain, we will increase corporate value by continuing to increase sales and generate proﬁts, while considering
how we can contribute appropriately to society and customers.
2. Take on new challenges
We will rethink our structure, including corporate governance and improve the quality of our management, while at the same time creating new added value by
constantly taking on new challenges without fear of failure.
3. Create diverse workplaces
We will focus on developing our human resources and creating enjoyable and rewarding workplaces. We will promote the introduction of RPA*1 and AI*2 to make
operations more eﬃcient and create new types of work that can only be performed by people.
Whether work or play, if it is not interesting no one will do it for very long. To live a rewarding life, doing whatever it is that you want to do is the best motivation of all.
Many working people think to themselves that there is something they want to do or try and I want to create a Company in which they can take on such challenges. To thisend, our goal is a workplace in which employees can relax and be accepted, even if they make mistakes.
Our new medium-term business plan WeWill 2021 is based on our intention to try new things. We will formulate our own goals at the individual, departmental and teamlevels and strive to achieve them.
We formulated our vision and, at the same time, announced our long-term management goals toward 2030. Nichireiʼs corporate culture is one of seriousness and sincerity
because it deals with food. But we have also inherited DNA from predecessors who were constantly trying new things.
Although it is a major challenge, the goal of our 2030 plan is to contribute abundance to the human diet and improve health by creating new value that resolves social andcustomer issues by promoting innovation. We will strive to achieve solid results while at the same time realizing this goal.
*1 Robotic Process Automation: The use of cognitive technologies to enhance the eﬃciency and automation of mainly white-collar operations.
*2 Artiﬁcial intelligence: Using computers to artiﬁcially simulate human intelligence.
Vision for FY2031
Nichirei will promote innovations to create new value that resolves issues
faced by customers and society and contribute to the good diet and health of
all people.
In domestic operations, we aim to ﬁrmly establish ourselves as the No.1
market share and high proﬁtable company in the processed foods andlogistics businesses through the provision of higher added value andmaximum capital eﬃciency.
In overseas operations, we are targeting an overseas sales ratio of 30%,
which we will achieve through M&A and alliances aimed at expanding scale
and areas of operation. In addition, we seek to establish new earnings pillars
through the creation of new businesses.

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The Medium-term Business Plan
WeWill 2021 (FY2020–2022)* Fiscal years (FY) indicate years ended March 31.

In FY2021, the Nichirei Group launched its new medium-term business plan.
The basic policy of this plan is to realize sustainable proﬁt growth and the creation of new value that supports a good dietary lifestyle and good health.
To realize sustainable proﬁt growth, we aim to strengthen the foundations of our management system and transform our business structure in Japan. At the same time, wewill seek to expand the scale of our operations abroad.
Targets for the Nichirei Group overall include net sales of ¥657.0 billion (average annual growth rate of 4.2%) and operating income of ¥35.0 billion (average annual growthrate of 5.9%). In addition, to accelerate overseas business development, we will engage in alliances with local companies, including M&As, to achieve growth targetingoverseas sales of ¥100.0 billion or more.
In terms of investment strategy, we plan to engage in proactive investments that surpass those under the previous medium-term business plan. Overall investments for theGroup are projected to be ¥100.8 billion, which is ¥37.8 billion more than investments under the previous medium-term business plan.
Focusing on our core businesses of processed foods and logistics, while engaging in overseas business and operational innovations involving IT and other strategies, we will
allocate management resources to new business development and R&D, focused on a medium- to long-term perspective. In this way, we will attempt to further enhancecompetitiveness and create pillars of future growth, including those in new areas.
Since 2001, the Nichirei Group has utilized REP (Retained Economic Proﬁt), an original indicator focused on capital costs, with the aim of ensuring proﬁts that exceed capitalcosts in each segment. However, under this new plan, we will utilize EBITDA*3 as the new management indicator for evaluating performance. By covering the EBITDA
growth rate along with proﬁt margins, we will enhance ongoing ﬁnancial management and our ability to generate cash.
*3 EBITDA: Operating income + Depreciation and Amortization expense (including lease, excluding goodwill)

The Medium-term Business Plan WeWill 2021 (FY2020–2022)
Sustainable Growth from Raising proﬁtability in Japan and Expanding Overseas Operations.
GeneralStrategies

1.Realize sustainable proﬁt growth
2.Improve capital eﬃciency and expand shareholder returns
3.Create new value that supports a good dietary life and healthWith regard to ﬁnancial strategy, we will continue to improve capital eﬃciency and maintain ROE at 10% or higher. To enhance shareholder returns, we will revise thedividend on equity ratio, previously 2.5% and raise it to 3.0%.
As a result, the dividend per share for the current ﬁscal year will be increased by \10 to \42 (dividend payout ratio of 28%). We will continue to target stable dividends.
Under this new business plan, we will engage in the following environmental, social and governance initiatives.
The Nichirei Group is focusing eﬀorts on various initiatives aimed at achieving the long-term objectives set forth in the UN Sustainable Development Goals and the Paris
Agreement. It is doing so in order to realize a sustainable society amid rising global concerns over a variety of social issues. These include how best to respond to climatechange and respect human rights, as well as the need to conserve water, energy and other resources.
Concerning food, so-called food loss has become a social problem in recent years. Thus, Nichirei will proactively work to solve this problem through our frozen food,ingredients and logistics businesses.
In terms of reducing environmental impacts, we will promote the elimination of chloroﬂuorocarbons by switching to refrigeration equipment utilizing natural refrigerants,
while ﬁrmly supporting the reduced use of plastic through the development of new, thin-ﬁlm packaging materials.
As a measure to further enhance corporate governance, Nichirei will seek continuous improvement through Board of Director evaluations. In addition, it will continue toimprove corporate value over the medium- to long-term by strengthening the link to executive compensation system performance.
As even greater changes are expected to take place in the business environment, we will strive to use this new medium-term business plan WeWill2021̶aimed atachieving our long-term management goals toward 2030̶to maximize Nichirei Group capabilities and enhance corporate value.

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CSR/Environmental Practices

The Nichirei Pledge Working to Make Our Communities More Sustainable

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 the issues
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 theirunderstanding and promote further dialogue.

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

Provide safe products
and services
We ensure that everything we oﬀer ourcustomers is characterized by highquality and safety.

Maintain a sustainablesupply chain
We work to ensure that our supply
chain is sustainable.

Reduce environmental
impactFoster cooperative
relations with
communities

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

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 most of 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.

CSR Structure5Create New Value for Customers
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 peopleʼs 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 That Promote Health
Nichirei Foodsʼ 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 by diabetes. It is working on modifying its website withguidance from national registered dieticians so that customers are able to choose menu items according to theirhealth 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 aswell as to prevent disease in factory farm conditions and promote growth. However, with Nichirei Freshʼs FA
Chicken, while vaccines are used, no antibiotics or synthetic antibacterial agents are used at all throughout theentirety of the rearing process. To pay attention to the rearing environment and boost the chickensʼ natural immunity
and raise their resistance to disease, a feeding method is employed that utilizes lactic acid bacteria and otherattenuated 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 the Omega Balance meat series using special feed and original rearing methods to allow ahigher 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 livestockindustry better for people, the animals, and the environment.
Nichirei Biosciencesʼ Initiatives
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At Nichirei Biosciences, an information website is managed under the supervision of doctors with the objective ofproviding the latest immunostaining-related information to those engaged in pathological examinations at hospitals
and such, as well as those at universities and research institutions involved in pathological research for basic andclinical medicine.

Men-eki Senshoku Tamatebako (Immunostaining)(Only available in Japanese)

Meat Production: Focus on Omega-3 Fatty Acids
Amani no Megumi Meat
http://www.goodbalancemeat.jp/ (Japanese only)
Nichirei Fresh produces and sells meat with a focus on omega-3 fatty acids, which are essential for human health.
We have improved the balance of omega-3 and omega-6 fatty acids by giving chickens, pigs and cattle* a formula
feed that uses ingredients derived from ﬂax, which is rich in α-linolenic acid. As a result, we have developed tendermeat that we have been selling since 2006.
Omega-3 fatty acids, abundant in blue-backed ﬁsh, ﬂaxseed oil and wild sesame oil, are converted into
eicosapentaenoic acid (EPA) and docosahexaenoic acid (DHA) in the body. However, the diet of todayʼs Japanese isoften lacking in the essential fatty acids that cannot be made in the body, especially omega-3 fatty acids. Thus,
Nichirei Fresh is helping support the health of its customers through the meat that appears frequently in everyday
meal settings.
*There are individual diﬀerences.

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Health through Nutrition
Composition-Controlled Foods
https://wellness.nichirei.co.jp/shop/default.aspx (Japanese only)
Since 2004, Nichirei Foods has been selling, by mail order, side dishes and rice that are not only calorie-controlled
but also contain controlled levels of salt, fat and carbohydrate.
We have a registered dietitian in the company and oﬀer meal consultations over the phone, thereby providing
customers with the opportunity to easily manage their health.

Kikubari Gozen nutrition composition-controlled foods

Companion Diagnostics
Provision of diagnostics for personalized cancer treatments
https://www.nichirei.co.jp/news/2018/321.html (Japanese only)
In 2014, Nichirei Biosciences became the ﬁrst Japanese company to manufacture and sell “companion diagnostics”,
which are used to select treatments and drugs eligible for each patient with cancer in terms of their physicalcondition and pathology.
Furthermore, immune system-related technologies that we have developed so far are contributing to theadvancement of personalized medicine that enables the selection of treatments and drugs that are highly eﬀective
and have few side eﬀects.

Histoﬁne ALK iAEP® Kit

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Initiatives for Innovation
Food Waste Reduction
AI-powered diagnostic technology
https://www.nichireifoods.co.jp/news/2018/info_id5715/ (Japanese only)
In February 2018, in partnership with Kindai University, Nichirei Foods developed technologies powered by artiﬁcial
intelligence (AI)1.
We maintain and control the quality of the ingredients for processed chicken products as we receive them, by using
sorting technologies, such as metal detection, X-rays, near-infrared rays, optics and colors.
However, since the accuracy of these methods in distinguishing the quality of ingredients decreases depending on theposition and angle of the foreign matter and impurities,2 additional manual or visual inspection is often required.
In the selection of the ingredients for cuts of chicken, in particular, the three major impurities that must be
eliminated are bones, feathers and bloodstains. Due to its ability to locate such impurities with pinpoint accuracy, AIpowered technology does not remove unnecessary amounts of impurity-free meat, leading to reduced food waste.
Notes:
1. Artiﬁcial Intelligence (AI) is the simulation of human
intelligence processes by machines, especially computer
systems. The computer programs used can understandhuman language, make logical inferences and learn fromexperience.
2. Impurities, the parts from the ingredients that are notnormally edible, in the case of chicken referring to bones,
feathers, etc.

Using the IoT to Save Energy, Pass on Skills
Predicting refrigeration failures, saving energy
https://www.nichirei.co.jp/sites/default/ﬁles/inline-images/ english/csr/pdf/csr2018.pdf#page=21
In September 2018, the Nichirei Logistics Group worked jointly with Hitachi, Ltd. to install a system to predictrefrigeration equipment failures using the IoT and to improve the operating eﬃciency of equipment.
This will allow operations and maintenance to be more eﬃcient, while helping to overcome the shortage of skilled
engineers and save energy.

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TOPICS

Technology for Personalized Flavor

https://www.nichirei.co.jp/newbiz/biz002/ (Japanese only)

We are developing a program that gives ﬂavor recommendations to make peopleʼs selection of food moreenjoyable. The associated service will commence in 2020.
The program uses the Nichirei Groupʼs MS Nose proprietary technology, which measures retronasal aroma1
which is a key element of ﬂavor.
It also uses psychometrics,2 the design and interpretation of tests that measure psychological values. Using
technology to ﬁnd ﬂavors that one likes enables one to enjoy food better and represents an added value thathas not previously been available.
Notes:
1. The sense is stimulated when aroma moves from the mouth to the olfactory receptors.
2. Technology developed in collaboration with the Faculty of Science and Engineering, Chuo University.

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 andseriousness 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 to accurately identify the food allergens on packaging, in compliance with the nationʼs foodlabeling laws. The Group has made every eﬀort to itemize the food allergens contained in frozen foods for home usethat are handled by Nichirei Foods.

Product Responsibility

10Create New Value for Customers

Innovation

Innovation is essential if we are to create new value and, by 2030, achieve the vision of our long-term management
goals. As food and health become ever more important concerns and the need for Group-wide promotion of newvalue becomes increasingly evident, we have begun to create a mechanism with that in mind.

Company Innovation
The Groupʼs long-term management goals formulated in FY2020 state that, “the Company will promote innovation tocreate new value that solves the problems of customers and society.” Another of our goals is to achieve net sales of¥1 trillion by 2030.
Enter into the picture COVID-19. The pandemic has signiﬁcantly changed the world, the previously commonplace isgone, and the creation of new value is more necessary than ever.
Nichirei believes that innovation is not limited to be innovative, but includes combining existing knowledge andresources to create new economic and social value. This can be achieved by transforming our core business modeland creating new business opportunities.
When it comes to realizing our long-term management goals, the one of the material matters is the creation of newmarkets and customer value by taking on challenges that donʼt adhere to our existing food- and health-related
business areas.

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Producing New Value
While the Nichirei Group already has taken on many challenges, we recognize the diﬃculty of continuing to do so inthese times of uncertainty. We thus decided to discuss, with those in charge at the time, how in the past they had
dealt with obstacles.
Over the course of nearly three months, we asked some 50 people about close to 40 challenges they had handled.
We learned that, although these people had tried to generate ideas and take on challenges, they had tended to rush
through their paces in order to achieve results quickly, rather than take a medium- to long-term approach. Further,
the Company had not supported or nurtured their eﬀorts.

【Diagram Explanation】
Innovation activities (identifying opportunities, creating and verifying concepts, developing and implementing
solutions) are shown in the central red frame; uncertainty is reduced through rapid trial and error of hypothesis
testing that goes back and forth within the frame leading to the creation of value through innovation. In addition, we
aim to more smoothly promote the activities through organizational support. Human resource development, which
we are focusing on this year, is an initiative related to the “competence” of the support system.

Source: ISO 56002 Innovation Management̶Innovation Management System Guide
Note: The numbers in parentheses in the diagram indicate ISO 56002 chapter numbers.

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It became clear that innovation is not achieved by one speciﬁc and capable individual. Rather, it is realized by all theGroupʼs employees who, as ideas are generated, will pull together to support the taking on of challenges, resulting in
greater innovation.
To this end, we must create a Company culture that fosters and nurtures challenges.
The mechanism currently being developed is based on ISO 56002, the 2019 internationally validated guideline for
how to set up an innovation management system (IMS). We now are creating a Nichirei-speciﬁc IMS to reﬂect theGroupʼs distinctive features.
The aim of our IMS is to provide organizational support for nimble trial and error attempts to cultivate ideas, fromconception to fruition. The mechanism has two special features.
Regarding the ﬁrst special feature, it is through the development of human resources that we aim to inculcate ashared awareness and understanding of innovation. At present, we are conducting workshops on how to use theBusiness Model Canvas (BMC), a tool for game changers that helps design thinking.
We expect that using the BMC strategic management building blocks as a common language will facilitate smoothcommunication among those engaged in innovating and those who support them, thereby enabling the entire Groupto promote innovation activities.
Some 200 employees have attended BMC-related workshops to date, and our goal is to have 80 % of our employees
participate in these over the coming ﬁve years.
The second special feature is the development of infrastructure to collect and reﬁne ideas. We plan to stimulateinnovation by encouraging new ideas and innovative techniques, reﬁning and evaluating them for all involved to see.

Future Developments
Societal issues related to food and health̶including food loss, a super-aged society, and problems resulting fromnatural disasters̶are diverse and complex. For this reason, we wish to make the best use of Nichirei resources andwork together with our stakeholders, other companies (including ones in other industries), universities, and research
institutes.
In the face of the major changes that society is undergoing, we believe that it is up to us to propose, fromperspectives unique to Nichirei, the adoption of values that the world and consumers are demanding.
As innovation eﬀorts are not quick to bear fruit, we plan to allow a little more time before the IMS currently being
developed is used to establish a culture that will enable the entire Nichirei Group to create new value.

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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 Groupʼs business
management philosophy. Its goals are to ensure the quality and safety of all the Nichirei Groupʼs products andservices̶so that they will not be hazardous to the health of its consumers̶as well as to maintain and improve thestandards 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 Groupʼs quality management and assurance.
3. Applying the concepts of food defense, safety and crisis management, to prevent Group products fromthreatening the health of customers.

Fundamental Policies on Quality Assurance

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 to evoke.
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 otherbrands of frozen food. In general, the following way of thinking is applied to all product packaging that receives the N
mark.

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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 labeling laws. 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 understanddiagrams and drawings, and 2D bar codes used for mobile marketing to provide essential customer
information, including where an item and its ingredients were produced, and how it should be prepared forserving.
3. Conveying products ﬂavor
The Nichirei Group consults designers about how packaging can best convey a productʼs 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 besorted for appropriate disposal or recycling.

Management System
The Nichirei Group Quality Assurance System

The Nichirei Group Quality Assurance System Diagram15

● Product Quality Assurance

The Nichirei Group oﬀers a variety of products and services. Each operating company has established rules andstandards based on the characteristics 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 Groupʼs systematic preventative approach to food safety emphasizes the biological, chemical,
and physical hazards in production processes and the need for 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 toprotect 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 tohealth 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

16Building of Quality Control System through Proactive Introduction of International Standards
https://www.nichirei.co.jp/sites/default/ﬁles/inline-images/english/ir/integrated/pdf/59-60.pdf
The Nichirei Group oﬀers a variety of products and services that possess distinguishing characteristics. In addition tothe operation of internal rules and regulations that match those characteristics, we are actively promoting theacquisition of international standard certiﬁcations while working to strengthen our quality control system and provide
safe products and services.

■Certiﬁcation Status
Certiﬁcation

Certiﬁed Ratio*5
FY2018FY2019FY2020Nichirei
Foods

13/15

86.7%

14/15

93.3%

14/15

93.3%

Nichirei
Fresh

6/7*6

85.7%

7/7*6

100.0%

7/7*6

100.0%

Nichirei
Foods

13/15

86.7%

3/15*720.0%

3/15*720.0%

Nichirei
Fresh

8/8

100.0%

8/9

88.9%

8/9

88.9%

Nichirei
Logistics
Group

105/11293.8%

104/115

90.4%

81/115

70.4%

Nichirei
Foods

13/15

86.7%

14/15

93.3%

14/15

93.3%

Nichirei
Fresh

6/8

75.0%

7/9

77.8%

7/9

77.8%

Nichirei
Logistics
Group

2/112

1.8%

2/115

1.7%

2/115

1.7%

ISO14001(Environmental
management system)

Nichirei
Foods

11/15

73.3%

11/15

73.3%

11/15

73.3%

ISO13485(Medical devices /In vitro diagnostic drugs)

Nichirei
Biosciences

2/2

100.0%

2/2

100.0%

2/2

100.0%The HACCP system*1

ISO9001(Quality management
system)FSSC22000*2, ISO22000*3,
SQF*4(Food safety management
system)*OperatingCompany

Fiscal years (FY) indicate years ended March 31.

17

Notes:
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 that aims to prevent hazards during the manufacturing process by analyzinghazards 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 isbased on the HACCP food sanitation control techniques.
4. SQF (Safe Quality Food) certiﬁcation provides assurance that the product being purchased meets strict international foodsafety and quality standards such as HACCP. In countries outside of Europe, it is the program recognized by the Global Food
Safety Initiative (GFSI).
5. Target business establishments ratio: Consolidated subsidiary business establishments in Japan (food factories, logistics
centers, etc.)
6. Target business establishments excluding Nichirei Fresh Farm
7. Switching to FSSC22000

Applicable Worksites
Environmental Data: Applicable Worksites for FY2020 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 (2), Fresh Chicken Karumai, Fresh Meat Sakudaira
Nichirei Logistics Group
Logistics Network (38), NK Trans (4), Nichirei Logistics Hokkaido (8), Nichirei Logistics Tohoku (5), Nichirei Logistics
Kanto (10), Nichirei Logistics Tokai (11), Nichirei Logistics Kansai (13), Nichirei Logistics Chushikoku (15), Nichirei
Logistics Kyushu (15), Kyokurei (5)Nichirei Biosciences
Development Center
Other
New Housing

18

Food Defense Initiatives
https://www.nichirei.co.jp/english/safety/system.html
The Nichirei Group emphasizes people
management to protect food.
In addition to restricting access to areas where
food is handled to authorized individuals, we havemade it possible to determine the when, who andwhere of such individuals at all times. In-house
operation rules covering visitors and contractors aswell as self-checks are in place and audits of ourplants are conducted regularly to conﬁrm safety.
We are also working to improve the workplaceenvironment based on employee satisfaction surveys and interviews.
We have installed cameras and face recognition systems at all our plants in Japan and overseas. To protect the food
we have created a system based on the distinguishing characteristics of each product and which allows follow-up
investigations to be conducted should problems arise. If a problem does occur, a link is established with our foodcrisis management system, which allows accurate information to be disseminated and responded to quickly.

Quality Assurance System for Diagnostic Drugs Based on ISO 13485
https://www.nichirei.co.jp/sites/default/ﬁles/inline-images/csr/report/2017/pdf/pdf_2017_007.pdf(Japanese
only)
Having obtained ISO 13485* certiﬁcation, the international standard for quality management systems in medical
devices, Nichirei Biosciences is building a thorough quality assurance system.
* The international standard for quality management systems in the medical ﬁeld covering the continuous manufacture and supply of safeand useful medical devices and in vitro diagnostics.

● Overview of ISO 13485

19

Activities for Safe, Secure Workplace Environments and Service Quality Improvements
https://www.nichirei.co.jp/english/csr/work/investigation.html
Aiming to eliminate accidents in warehouses and involving its delivery vehicles as well as zero product accidents, theNichirei Logistics Group holds regular training at the Safety and Quality Training Center and national contests for the
purpose of improving forklift driving skills, delivery driver skills and product knowledge.

Participants of the 6th contest which is held once a year

All-Japan Forklift Driving Competition (held once a year every three years)

Judging of inspection skills

Scene from the competition

20Service Quality Assurance
Nichirei Logistics Groupʼs new logistics center is outﬁtted with the most cutting-edge equipment, including advanced
security functionality and a seismic isolation structure. In addition, in regard to quality, traceability functionality,
inventory management functionality, and more along with temperature control that combines the Groupʼs know-how
and technology have allowed it to realize advanced logistics quality. When it comes to a logistics network, theapproximately 4,000 trucks, including the Nichirei Groupʼs 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.
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 ishandled to authorized individuals, the Nichirei Group has made it possible to determine the when, who, and where ofsuch 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, that might 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 andthe 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 Corporationʼs 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 toensure that the Groupʼs quality management system is functioning eﬀectively.
Each operating companyʼs 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.

21

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 ingredientsuppliers are required to submit information on each ingredient in the form of ingredient quality speciﬁcations. This isplaced 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, theGroup 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

Building of Traceability
https://www.nichirei.co.jp/sites/default/ﬁles/inline-images/english/csr/pdf/csr2018.pdf#page=38
To always provide safe, reliable and high-quality food, the Nichirei Group conducts rigorous quality controls andinspections, from the ingredients to the products and has built a traceability system that matches the distinguishing
characteristics of each product. In the event of an accident, enhanced traceability would prevent damage fromspreading and enable rapid investigation of the cause. We would also provide prompt and accurate information to
alleviate consumer concerns.
The building of traceability requires collaboration and cooperation on the part of the ingredient suppliers,
manufacturers and distributors in the supply chain.
The Nichirei Group regularly holds study sessions to deepen shared awareness with regard to quality information. To
digitize and link information, we are also promoting the utilization of our own system that can be centrally controlled.

22● Traceability in the case of frozen green soybeans (illustration)

What the Trace Code Tells You
The trace code allows you to trace a product back to its place of cultivation. Trace codes are printed on these
Nichirei Foodsʼ frozen green soybeans to trace the cultivation and production management. If you know how toread these codes, you can trace the entire history of a product, from the cultivation management status in theﬁeld to the conditions in the factory. Nichirei Foods is using the trace codes to conduct ongoing improvements
based on its discussions with local producers, in order to better respond to customersʼ needs.

Cultivation Management
The farms, in China and Thailand, where frozen vegetables are produced for Nichirei Foods have been selected basedon their ability to meet Nichirei Foodsʼ environmental standards (in terms of soil, water quality, etc.) and agrochemical management requirements. A farm advisor, from the Groupʼs frozen vegetable production facilities, isregularly 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 detailing the importation, selection, cleansing, processing, freezing, packaging, inspection, andshipping of the vegetables cultivated. In addition, the Nichirei 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 agrochemicalsof domestic produce and certiﬁes their safety at the same time as conﬁrming the proper functioning of the local
systems.

23

Initiatives for Communication with Customers
Initiatives for Communication with Customers
Besides providing products with reliable quality, providing relevant information to customers is Nichirei Foodsʼ toppriority. 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 customersʼ opinions toprovide feedback to work sites 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 to be mistaken, and thus undergoes stringent double-checking to ensure that all relevant
legal stipulations are met. The name and place of origin of raw ingredients used in products are identiﬁed on the
packaging, based on the information provided by the producers. Further, since the best-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 theGroupʼs belief that a customerʼs ability to communicate with lit is of paramount importance, packaging clearly
displays a toll free number for enquiries.

24

■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 ofresources

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 anumber of checks between the time that information displays are created and products are shipped. It also checks tomake sure that nothing on the packaging can cause misunderstanding. It is implementing display checks with thesetwo points in mind in its examinations as well, and only those products that pass can be manufactured.
Veriﬁcation before the N Mark Is Added to Packaging

Creation・First charts with detailed breakdowns and distribution percentages, based on 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 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.
・The information displayed meets legal, policy, and in-house standards.
・Information about allergies, which can threaten health, is suﬃcient and correct.
・The Customer Support Center endorses the packaging of home-use products.

25

Display veriﬁcation

Inspections
・The Nichirei Group checks the label contents for product packaging that receives the N mark. It performs
thorough checks of labels that are regulated by law, including allergen displays and other content directly
related to health hazards.
・The Nichirei Group checks all the information from a customerʼs 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.

Veriﬁcation at the Factory: After Packaging and before Shipping

Printing, data checks

Factory・The packaging ﬁlm and boxes are checked to ensure they are as stipulated.
・Accuracy of the information printed at the factory (the best-by date, lot number, trace-back code) andprinting quality (faint, smeared) are checked.
・Factory packaging is double- and triple-checked before shipping.

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.

26

Examples of information on product ingredients and product areas, allergen displays (Onlyavailable in Japanese)

Food Safety Center Initiatives

The initiatives of the Nichirei Foods Customer Support Center

Nichirei Foods is making various eﬀorts to make product packaging easier to see and understand. Its eﬀorts to makepackaging that increases visibility for everyone, including the elderly and colorblind, is one part of these eﬀorts.

Universal Design Initiative (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.

Food Safety Center Initiatives
The Nichirei Quality Assurance Divisions Food Safety Center is the Groupʼs 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 andsynthetic 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 ofagrochemicals 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, theGroup monitors the products and raw ingredients it handles using an NaI (TI) scintillation spectrometer.

27

Quality Assurance Audits
Regular audits are conducted by each Group company based on an annual plan. The plans are determined byrationally and objectively evaluating the magnitude of possible risks, based on risk management, whether or notcertiﬁcation of international standards has been obtained, the quantity of products handled annually, and productcharacteristics.
PDCA is also used in regular audits. Audit results are used as reference when determining audit policies and target
sites when developing audit plans for the upcoming year.

■Regular Audits
Quality assurance audit

FY2018FY2019FY2020Japan

Overseas

Japan

Overseas

Japan

Overseas

Number of annual Group audit(Japan/Overseas)

156

15

66

38

54

20

Annual Group implementation rate(compared to plan)

100%

88%

97%

100%

89%

80%

Health Initiatives
As a company engaged in food-related businesses, the Nichirei Group believes that access to better nutrition is avery important part of peopleʼs 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 ahealthy society through its businesses.

Issues surrounding food safety and security

Nichirei Foods Wellness Food Product Development/Sales (Only available in Japanese)

Providing an information site to health professionals (Nichirei Biosciences)(Only available inJapanese)28Collaboration with Industry Organizations, etc.
The Nichirei Group actively participates in industry group activities and contributes to helping communities improveand solve the issues they face through proposals and recommendations/encouragement.
Nichirei and Nichirei Foods are oﬃcial members of the Japan Frozen Food Association, both Nichirei Logistics Groupand its main subsidiaries are members of the Japan Association of Refrigerated Warehouses, and Nichirei is amember of the Japan Food Industry Association.

Industry Organizations

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 throughquickly and appropriately responding to the opinions and reports of customers. In addition, Nichirei aims to provide
accurate product information and a brand that is both safe 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, bothof 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); andfuture 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. Eﬀorts on this direction are ongoing.

29

● Breakdown of Customer Interactions in 2019

● Evaluation of Customer Satisfaction Reception Response

Product Recall Information
These are the product recalls that have occurred in the past ﬁve years.
Date

TargetJuly 27, 2014

Retort curry Shinjuku Curry Beef (Only available in Japanese)

May 11, 2016

Frozen vegetables produced in America (Only available in Japanese)30

Protection of Personal Information
In FY2020, there were no issues related to the leaking of personal information, etc.

Staﬀ Training for Quality Improvement
FY2019Nichirei
Foods

NichireiFresh

FY2020

Numberof
People

Hours

Numberof
PeopleHours

Smooth communication, problemsolving technique, control ofproduction line sanitation78
people

924
hours

92
people

1,008
hours

Leader candidate
training

Management demonstration on
educating young employees andaccomplishing tasks

41
people

1,309
hours

41
people

1,320
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

183
people

72
hours

264
people84
hours

First- to second-year
employee training
sessionBasic knowledge of quality
assurance, factory check, label,
response to requests, etc.

17people

42
hours

18
people44
hours

Mid-career employee
training (livestock
instructor, livestock
processed productmeister)

Factory audit / guidance points,
selected materials, mechanism ofmetal / X-ray detector, basics ofcleaning and sterilization, label
creation, etc.

3 people6hours

7 people

26
hours

Information session
for revision of laws
and regulations

Food labeling standards, addition offood allergies, etc.

25
people

25
hours

30
people30
hours

Training

Description

First- to third-year
employee technicaltraining session※ Since all Nichirei Fresh Group production plants are subsidiaries, each company conducts training such as FSSC certiﬁcationand maintenance.

31

Maintain a Sustainable Supply Chain

Supply Chain Management
Basic Philosophy
The Nichirei Groupʼs Nichirei Pledge deﬁnes the philosophy behind the CSR initiatives that the Group believes itshould pursue. However, it cannot make the essence of its philosophy a reality with the Groupʼs eﬀorts alone.
The Group believes that it is essential for a company to forge an appropriate relationship with stakeholders to makeappropriate contributions to society through the life cycle of its business activities. In particular, because Groupbusinesses harvest raw materials from natural ecosystems, the Group is aware that it may have an impact on thecommunities in its production site. For this reason, from a long-term perspective, the Group will forge appropriate
relationships with its suppliers and partner companies and is aiming to contribute to the vitality and development 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 in accordance with the following policy and asks suppliers to assent to and comply withthis 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 businessactivities in a timely, appropriate manner.
Local communities: We seek to build close cooperative relationships with local communities, as a good
corporate citizen.

English Chinese

Thai Vietnamese Portuguese Spanish

Nichirei Foods Inc. Supplier CSR Guidelines（published OCT. 2020）32

Management System
The Group is aware that it may have various impacts on society and the environment, including in its supply chain,through its domestic and international business activities, so it wishes to forge an appropriate relationship withstakeholders from a social and environmental perspective as well. In April 2017, the Group declared “maintaining asustainable supply chain” as one of the important items in the Nichirei Pledge of its Basic CSR Policy, and as thefoundation 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 andpartner companies perform a self-check of the essential items concerning social responsibility related to
procurement, and dialogue about the contents of the check sheet occurs during factory quality audits. In thisprocess, the Nichirei Group Sustainable Supply Chain Basic Policy is shared with suppliers in Japan and overseas toobtain understanding and cooperation.

■Regular Audits
Quality assurance audit

FY2018FY2019FY2020Japan

Overseas

Japan

Overseas

Japan

Overseas

Number of annual Group audit(Japan/Overseas)

156

15

66

38

54

20

Annual Group implementation rate(compared to plan)

100%

88%

97%

100%

89%

80%

Regular audits are conducted by each Group company based on an annual plan. The plans are determined byrationally and objectively evaluating the magnitude of possible risks, based on risk management, whether or notcertiﬁcation of international standards has been obtained, the quantity of products handled annually, and productcharacteristics.
PDCA is also used in regular audits. Audit results are used as a reference when determining audit policies and target
sites when developing audit plans for the upcoming year.

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

33

Inaugural Supply Chain Meeting to Promote CSR Procurement
Since 2019, in accordance with the OECD Guidelines for Multinational Enterprises and the United Nations Global
Compact, the Nichirei Group has been promoting the understanding of, and working toward attaining, the Nichirei
Group Sustainable Supply Chain Policy and ensuring that our supply chain business partners are in step with theGroupʼs CSR procurement activities. In FY2021 (ending in March 2021), we launched a Supply Chain Meeting toenable Group companies to participate in formulating Group CSR procurement guidelines, as well as to share with us
and examine issues regarding the addressing of human rights due diligence. In addition to Nichirei Foods having
joined the July 2019 Sedex* London conference, the Group is engaged in ethical and responsible business practices
throughout our global supply chain.
* Supplier Ethical Data Exchange, a non-proﬁt organization established in the United Kingdom in 2004 to provide a platform
for managing and sharing corporate ethical information with the aim of realizing responsible business practices in supply
chains.

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

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

2019 Human Rights Due Diligence Workshop

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

Promoting respect for human rights across the supply chain

34

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, andvarious other products. Last year, progress was made with a large-scale development of oil palm plantations, and thedeforestation of the tropical rainforest, CO2 emissions from peatlands, and other environmental issues, along withforced 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 nonproﬁt organization that promotes the sustainable production and usage of palm oil. Nichirei Foods' food factories(consolidated subsidiaries in Japan and overseas) aggregate the total amount (100%) of palm oil used for frying oil
as a primary raw material and purchase the appropriate amount of RSPO certiﬁed oil credits (Book & Claim model)
by the end of FY2021. We will support RSPO's eﬀorts to promote sustainable procurement in the supply chain.

4-1055-18-100-00

Questionnaire Survey and Progress with Major Suppliers

https://www.nichirei.co.jp/english/csr/supplychain
To work on building sustainable supply chains, the Nichirei Group undertakes the procurement of products andservices in accordance with its policy and encourages its suppliers to understand the policy and put it into practice.
FY2018
Nichirei Foods

Nichirei Fresh

Shared Nichirei Group
Sustainable Supply Chain
Policy with important
suppliers in Japan andoverseas, conductedsurveys in a questionnaire
format

FY2019Collected allquestionnaires

FY2020Analyzed
questionnaire
content

・Join Sedex
・Started creating
Supplier CSR Guidelines

Visited some
suppliers andexchanged
opinions

Continuation of analysis
of questionnaire contents

Nichirei Foods Inc. Supplier CSR Guidelines（published OCT. 2020）35

ASC/MSC-certiﬁed Products
Aquaculture Stewardship Council, Marine Stewardship Council Certiﬁcation
Since 2006, Nichirei Fresh has been engaged in the Forest of Life Project*1 nature conservation activities involving
sustainable black tiger prawn farming and mangrove tree planting in Kalimantan, Indonesia.
These activities were extended to whiteleg shrimp ponds in Sumatra, Indonesia, and obtained Aquaculture
Stewardship Council (ASC) certiﬁcation*2 in 2018. From 2020, mangrove planting will begin in earnest, with plans toplant about 280,000 trees.
In addition, we are gradually increasing the handling of marine products certiﬁed*3 by the Marine StewardshipCouncil (MSC) and, June 2019, we have been handling 17 ﬁsh species of marine products. In the years ahead, weplan to increase the variety of sustainable marine products we handle.
*1 Forest of Life Project︓ https://www.nichireifresh.co.jp/inochinomori/*2 ASC certiﬁcation requires that marine products used have been cultivated in a sustainable manner.
*3 MSC certiﬁcation requires that wild seafood used has been caught using methods that do not deplete the natural supply.

■Nichirei Fresh products that have obtained ASC/MSC certiﬁcation (as of June 2019)
authentication

authentication acquisition number

ASC
Certiﬁcation Registry Number ASCC-01632

Black tiger shrimp、Whiteleg shrimp、Paciﬁc oyster

MSC
Certiﬁcation Registry Number MSCC-52165

Salmon varieties (pink salmon, king salmon, coho salmon, chum salmon,
sockeye salmon)、Flatﬁsh varieties (Kamchatka ﬂounder, yellowﬁn sole, dusky sole, whiteﬂounder)、Walleye pollack、Paciﬁc cod、Scallops、Herring、Capelins、Snow crabs、Arctic surf clams、Red king crab

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

36

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

37

Maintain a Sustainable Supply Chain

Human Rights Initiatives
Basic Philosophy
The Nichirei Group believes that respecting the human rights not only of the Groupʼs 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 Policyin April 2017. The Group procures products and services in accordance with the following Policy and asks suppliers toassent to and comply with this policy. In one of the items, 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

Nichirei Group Sustainable Supply Chain Policy

Human Rights Policy
https://www.nichirei.co.jp/sites/default/ﬁles/inline-images/english/ir/integrated/pdf/P51-52.pdf
Under the Nichirei Groupʼs corporate vision of “continuing to support good eating habits and health by leveraging ourstate-of-the-art manufacturing practices that optimize natureʼs bounty, along with our leading-edge logistics
services,” we create new customer value and contribute to ﬁnding solutions to challenges facing our society, in aneﬀort to be an indispensable member of society.
Recognizing that our business processes may have direct or indirect eﬀect on human rights, we have established the
Nichirei Group Human Rights Policy (hereafter referred to as the “policy”), based on the United Nations Guiding
Principles on Business and Human Rights. This policy guides us in our eﬀorts to fulﬁll our responsibility to respecthuman rights of all stakeholders of our business.

38

1. Scope

The policy is applicable to all employees and oﬃcers of the Nichirei Group. We will also
require business partners to support the policy and work towards ensuring respect forhuman rights.

2. Basic Principles

In addition to our eﬀorts to promote respect for human rights based on the United
Nations Guiding Principles on Business and Human Rights, the Nichirei Group supports
and upholds the following international standards:
The United Nations International Bill of Human Rights (the Universal Declaration of
Human Rights and the International Covenants on Human Rights);
The International Labour Organizationʼs Declaration on Fundamental Principles and Rights
at Work; andThe United Nations General Assembly Resolution: The United Nations Declaration on the
Rights of Indigenous Peoples.

3. Identiﬁcation of,
Response to andDisclosure ofIssues Related to
Human Rights

The Nichirei Group will establish a system of human rights due diligence to identify,
prevent and mitigate adverse impact on human rights generated by our group in society.
If any business activities of the Nichirei Group cause adverse impact on human rights or if
it is discovered that the Nichirei Group is involved in causing adverse impact on humanrights through our business transactions with stakeholders and the like, we will take steps
to provide a remedy based on internationally recognized processes.
The Nichirei Group will utilize the expertise and knowledge of independent, external
human rights experts in implementing this policy and engage in earnest dialogue andconsultation with stakeholders who may be aﬀected by our business.
The Nichirei Group will speciﬁcally assign oﬃcers with responsibility in implementing thepolicy and monitor implementation of this policy.
The Nichirei Group will appropriately conduct education and training to ensure that thispolicy is being eﬀectively implemented across all business activities of the Nichirei Group.
The Nichirei Group will regularly disclose results of and progress made in, our eﬀorts topromote respect for human rights based on this policy.
The Nichirei Group will comply with all laws and regulations of countries and regions inwhich we conduct our business activities. Where there is a conﬂict between nationallaws/regulations and internationally recognized human rights standards, the Nichirei
Group will seek ways to respect international human rights to the maximum extent
possible.

The Nichirei Group Human Rights Policy

Management System
In the Groupʼs endeavors to respect human rights in its business activities, the Group is aware that it may havevarious impacts on society and the environment, including in its supply chain, through its domestic and international
business activities, so it wishes to forge an appropriate relationship with stakeholders from a social andenvironmental perspective as well. In 2018, the Group began performing due diligence with regard to human rights
and established a human rights policy in April, 2019.

39

External Communications
During the Caux Round Table stakeholder engagement program held between June and July 2019, there were
proposals from NGOs and others, as well as dialogue among companies, we worked on identifying human rights
issues speciﬁc to the food industry and logistics business, we had discussions that delved into human rights issues.
The result shall be considered in our human rights activities and we will continue to engage in stakeholder
engagement to identify industry-speciﬁc human rights issues.

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

2019 Human Rights Due Diligence Workshop

40

Reduce Environmental Impact

Environmental Management
Basic Philosophy
The Nichirei Group established a Group Environmental Policy focused on three priority issues: prevention of global
warming, promoting sustainable recycling and living in harmony with nature.
Nichirei Group activities span the entire supply chain; it is involved in food factories, logistics centers and otherworksites. We thus play a part in the environmental impact resulting from the activities of our customers andbusiness partners.
At the same time, since Group business activities that support food-related infrastructure depend on natural
ecosystems for raw materials, our business is greatly aﬀected by climate change. With its business interests in mind,
the Group is engaged in the following activities together with its business partners.
Eﬃcient energy use in the production of food products
Reduction of greenhouse gases through increased eﬃciency in temperature-controlled storage and transportation
Reduced impact of business activities on climate change through promoting the use of renewable energy, fromprocurement and production, through to storage, logistics and sales

The Nichirei Groupʼs 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 andgood health̶and to continue providing freshness and good taste by using superior products and a ﬁrst-classlogistics network̶together with our stakeholders we must reduce the environmental impact of our businessactivities 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 business activities, reusing resources, and recycling. We also are helping build a recyclingoriented 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, ismaking an eﬀort to live in symbiosis with nature.

41

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 our activities so as to maintain and improve our management system. This we do in
addition to promoting problem-solving activities, based on the implementation of relevant regulations and theestablishment 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 eachstage, 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, andproactively 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.

Nichirei Group Biodiversity Policy
Biodiversity is both the foundation on which the survival of life forms depend, and a valuable asset that wemust 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, and are 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 our customers 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 substancemanagement; 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 ourfacilities, 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 consciousnessraising activities and information sharing.

42

Management System
The Nichirei Group, comprising a wide variety of diﬀerent businesses, promotes the design of environmental policies
adapted to the business characteristics of each member company, as well as highly eﬀective environmental activities.
The initiatives of each company are reported by the Group Environmental Protection Committee, which meets threetimes 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 presidents of operating companies making up the rest of the Committee membership.

43

Goals and Priority Challenges toward FY2021■ Long-term Goals for FY2012–FY2021 (formulated in FY2011)
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 FY2010
level at all domestic establishments and vehicles owned.

Reduce CO₂ emissions
from society 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
from society as a whole

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

Activities centered on
business activities

Procure materials produced or caught in consideration ofsustainable utilization and their processed products.
Build a recycling system in collaboration with business
partners and local communities to make full use of resources

Activities centered oncontribution to society

Stimulate activities helpful to the preservation andrestoration of biodiversity around business establishments
and material suppliers.
Engage in activities for raising environmental awareness andin the provision of information to contribute to building asociety that nurtures biodiversity

Eﬀerts toward Group long-term environmental goals and low-carbon policies

PRESS RELEASE︓About the Formulation of Long-Term Environmental Goals and Endorsementof TCFD Recommendations

Medium-term Targets and Results

44

■Groupʼs medium-term environmental plan
Applicable
worksites

Group medium-term environmental plan targets (FY2020–FY2022)
Reduction of CO₂
Maintaining waste
recycling rate andcontrolling waste
discharging
Water resource
conservation

Maintain FY2014 CO₂ emission levels in FY2022* Power coeﬃcient: Fixed to the FY2014 coeﬃcientWorksitesin Japan

Keep a recycling rate of 99% or higher

Worksitesin Japan

Reduce residue of material derived from animal and plant

Food
plants inJapan

In consideration of the environmental conditions surrounding water ineach community, the Group engages in water resource conservation
through eﬃcient water usage aimed at sustainable water usage

Foodplants inJapan* Fiscal years (FY) indicate years ended March 31.

Engaged in collecting data regarding the environment at overseas worksites

The reduction of CO₂ emissions refers to the target reduction of all emissions, and covers all energy consumed atworksites and by company-owned vehicles in Japan. The waste recycling rate continues to be maintained at 99% orhigher. Food plants in Japan are also working to reduce residual animal and plant material. As for the conservation ofwater resources, as a food-related corporate group, Nichirei has formulated behavioral targets for using watereﬃciently 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.

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 operating companies have identiﬁed the major issues they are facing and are working toward reducing
their CO₂ emissions. The total amount of CO₂ emissions for FY2020 was almost the same※1 as for FY2010 in spite ofincreased production, new oﬃce construction, and so on. In addition, when using the coeﬃcient of variation tocompare the CO₂ emission factors due to electricity production, there was an increase of 3.9%※2. Going forward, in
addition to making its food factory and logistics center operations more eﬃcient, updating to energy-saving
equipment, and implementing renewable energy, the Group will work on reducing CO₂ emissions throughout its
entire supply chain.

45

● Nichirei Group CO₂ Emission Trends

Notes:
1. Fixed power emission coeﬃcient: The CO₂ emission intensity unit of 0.412 [t-CO₂/MWh] announced by the Federation ofElectric Power Companies of Japan in FY2010, 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 Inc., Nichirei Fresh:
Nichirei Fresh Farm Inc., Fresh Chicken Karumai Inc., Fresh Meat Sakudaira Inc.

Promotion of Sustainable Recycling of Resources
The amount of waste discharged outside worksites in FY2020 was 47,900 tons, and the waste recycling rate was
99.4%. Regarding residual animal and plant material at factories, targets have been set for each operating company
with a food factory, and eﬀorts are being made to reduce waste discharge. Although recyclers can sometimes not befound for waste destined for ﬁnal disposal because of the type and volume of waste, the Group will work on further
reductions, including by controlling the amount of waste produced.

46

● Nichirei Group Waste Discharged outside Worksites and Recycling Rate

Water Resource Conservation
The Nichirei Group grasps and manages its consumption of water and quality of its wastewater through regularmonitoring in compliance with various food safety and environmental protection laws and regulations. At worksites inJapan, positive steps are being taken to conserve water. Going forward, the Group will examine the availability ofnecessary water resources at each regional base and how to assess the impact of risks.

Intiatives for Water Resource Conservation

47

Material Balance
INPUT
Item

Raw materials

EnergyBreakdown of energy(1,000 GJ) used at eachbusiness company

Unit

FY2016FY2017FY2018FY2019FY2020

Total

1,000
tons

167

185

188

195

200

Material

1,000
tons

149

167

170

177

181

Packagingmaterials

1,000
tons

18

18

18

18

19

Purchased power

1,000
GJ

444,843447,574

443,480

447,277

444,335

Heavy oil

kl

3,329

3,335

3,319

2,609

1,926

Kerosene

kl

198

200

191

173

192

City gas

1,000m3

6,385

6,705

6,923

7,142

9,036

LGP

tons

4,623

4,620

4,650

4,814

3,614

Gasoline(Companyowned vehicles)

kl

524

467

461

402

322

Light oil(Companyowned vehicles)

kl

1,270

1,340

1,378

1,556

1,452

Solar power
generation

1,000
kWh

186

211

400

1,444

2,717

Nichirei Foods

1,000
GJ

1,649

1,716

1,726

1,761

1,759

Nichirei Fresh

1,000
GJ

173

179

169

173

172

Nichirei Logistics
Group

1,000
GJ

3,159

3,129

3,098

3,089

3,046

Nichirei
Biosciences

1,000
GJ

10

8

11

12

33

Others

1,000
GJ

72

73

74

72

69

Total

1,000m3

4,033

3,931

4,084

4,117

4,028

3

1,000m

1,336

1,284

1,256

1,267

1,238

Industrial water3

1,000m

853

877

917

907

897

Groundwater(well water)

1,000m3

1,845

1,770

1,911

1,943

1,893

Nichirei Foods

1,000m3

2,595

2,581

2,789

2,812

2,739

Nichirei Fresh

1,000m3

352

353

331

322

318

Nichirei Logistics
Group

1,000m3

1,070

977

947

963

952

Nichirei
Biosciences

1,000m3

5

8

6

6

8

Others1,000m3

12

12

12

13

11

Clean water
Water

Breakdown of water(1,000 m3) used at eachbusiness company

48

OUTPUT
Item

Waste

Breakdown of discharged
waste (tons) at eachbusiness company

Atmospheric system

Breakdown of CO₂
emissions (tons) at eachbusiness company

Unit

FY2016FY2017FY2018FY2019FY2020

Amount ofDischarged
Waste

1,000
tons

41.9

45.2

46.3

45.4

47.9

Recycle volume

1,000
tons

41.7

45.0

46.1

45.2

47.6

Volume of waste
for ﬁnal disposal
*1

1,000
tons

0.2

0.2

0.2

0.2

0.3

Nichirei Foods

tons

18,46921,29021,904

18,155

21,561

Nichirei Freshtons

11,02911,453

11,426

13,973

13,609Nichirei Logistics
Group

tons

12,336

12,45912,905

13,236

12,666

Nichirei
Biosciences

tons

43

37

46

44

72

Others

tons

ー

ー

ー

ー

ー

CO₂ *2

tons

286,382

279,465

273,348

259,980

241,235

5

4

4

3

3

SOx *3
Nichirei Foods

tons

92,894

93,61393,07690,717

84,579Nichirei Fresh

tons

9,830

9,914

9,281

9,376

9,336

Nichirei Logistics
Group

tons

179,529

171,652

166,509155,815

142,477

Nichirei
Biosciences

tons

406

538

574

568

1,561

Others

tons

3,724

3,747

3,909

3,503

3,282

3

1,000m

2,444

2,525

2,467

2,421

2,398

Sewer system

3

1,000m

1,530

1,577

1,522

1,464

1,447

Public waterarea (river etc.)

1,000m3

913

948

945

957

951

Drainage load
BOD *4

tons

26

46

48

48

49

COD *4

tons

Drainage

Water system

Breakdown of drainage(1,000 m3) at eachbusiness company

19

24

23

24

23

Nichirei Foods

3

1,000m

1,902

1,922

1,758

1,751

1,752

Nichirei Fresh3

1,000m

165

234

328

308

309

Nichirei Logistics
Group

1,000m3

360

349

362

343

317

Nichirei
Biosciences

1,000m3

5

8

6

6

8

Others1,000m3

12

12

12

14

12

*1 Within waste discharged, the volume of waste directly disposed of in landﬁlls and simply incinerated not to be used asenergy 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.

49

Applicable Worksites
Environmental Data: Applicable Worksites for FY2020 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 (2), Fresh Chicken Karumai, Fresh Meat Sakudaira
Nichirei Logistics Group
Logistics Network (38), NK Trans (4), Nichirei Logistics Hokkaido (8), Nichirei Logistics Tohoku (5), Nichirei Logistics
Kanto (10), Nichirei Logistics Tokai (11), Nichirei Logistics Kansai (13), Nichirei Logistics Chushikoku (15), Nichirei
Logistics Kyushu (15), Kyokurei (5)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 andoﬃces other than 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.
* Total ﬁgures may diﬀer due to the rounding eﬀect.

ISO 14001 Certiﬁcation, etc.
The Nichirei Group prioritizes ISO 14001 certiﬁcation at its food factories. At Nichirei Foods, certiﬁcation has beenobtained 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 72% of its food factories in Japan.

Green Management Certiﬁcation

50

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 environmentrelated law and conservation activities. Worksites that have obtained ISO 14001 certiﬁcation undergo internal
environmental audits as well as yearly external reviews by a registered external review body.

■In-house Environmental Education
Name

Content

Environmental e-learning

Held since FY2010 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 from FY2012
to FY2019, 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 theconnections between business and the environment.

Hands-on training on
company land in Urabanda

Hands-on training for employees was held on company-owned land in the
Urabandai region of Fukushima Prefecture between FY2014 and FY2017. There
they help eliminate the Signal crayﬁsh, a speciﬁed foreign organism, as well as goon 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 atsumorianum̶Fujimi, Nagano Prefecture's Cypripedium Restoration Conference̶since they
were established. The town of Fujimi conducted a hands-on environment-related
training program for Nichirei employees that included activities for the protectionof the Cypripedium macranthos.
Participating in activities to protect the 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! Program51

Environmental Accounting
To gain a quantitative picture of the costs and environmental beneﬁts of its environmental protection activities, theNichirei Group has implemented environmental accounting since FY2001.

■Cost of Environmental Conservation
Cost category

Food factories

Main activities

Investment

Costs within business area

Costs forpreventing
pollution

Food factories● Maintenance,
management and load
reduction of wastewater
treatment facilities forpreventing waterpollution● Maintenance andmanagement of boiler
facilities for heating andhot-water supply, and offacilities for eliminating
food odors

Logistics centers
ExpenseInvestment

Expense1,466,247

1,232,664

302,382

317,754

1,396,235

899,80350,51060,352

Logistics centers● Maintenance,
management and load
reduction of wastewater
treatment facilities forpreventing waterpollution● Measures forcontrolling noise fromstopped trucks

Breakdown

Costs forprotecting the
globalenvironment● Adoption of energysaving equipment, bettereﬃciency of equipment● Proper managementof CFCs

69,751

50,678251,872

109,091

Costs forrecycling
resources● Proper storage of
waste, arrangement ofwaste storage spaces
designed for thoroughwaste separation andsorting● Introduction ofprocessing equipment forrecycling● Outsourcing ofrecycling and waste
processing, managementof proper processing● Recycling of water

261

282,183

0148,31152

Upstream and downstream
costs● Procurement andpurchasing ofenvironmental goods(green purchasing)* Diﬀerence between
green purchase andregular purchase0012,756

5,447Management activity costs● Development,
maintenance andmanagement ofenvironmental
management system● Environmental
education of employees● Cleanup activities inareas around worksites

018,197

0

29,751Social activity costs● Nature protection,cleanup activities andtree-planting activities inareas further away fromworksites● Donations toenvironmental
conservation programs
and organizations

0

0

0

813

1,466,247

1,250,862

315,139353,765

Total

Main Investments for FY2019(Food factories)●Maintenance, management and load reduction of wastewater treatment facilities●Renewal of natural refrigerant refrigerators, etc.
●Making high eﬃciency of ﬁring machine(Logistics centers)●Expenses related to the appropriate management of Freon●Maintenance, management and load reduction of wastewater treatment facilities●Installation of energy-eﬃcient lighting●Equipment introduction costs for eﬃcient operation of refrigeration equipment
Scope of calculation
Main food factories and logistics centers in Japan
Method of calculation(1) Based on the List of Fixed Assets in the accounting system, depreciation and amortization is calculated forequipment 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 for each environmental conservation
activity, and multiplying this by the number of workers and the average wage rate at the worksite.

53

■Economic Eﬀects of Environmental Conservation Measures in FY2019(Thousands of yen)
Value ofeﬀect

Description of eﬀect
Increased
earnings

Cost
reductions

Gain on sales from recycling

27,652

Reductions in the cost of purchasing raw ingredients/materials and in the cost ofprocessing waste due to a reduction in waste

2,832

Reduction in energy costs due to energy savings (electricity)

12,263

Reduction in energy costs due to energy savings (heat)

9,319

Fewer resources consumed (water savings, decrease in containers and packaging,
etc.)

7,969

Total

60,034

Scope of calculation
Eight Nichirei Foods-operated factories in Japan that have obtained ISO 14001 certiﬁcation
Method of calculation(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 FY2019, attributable to new environmental conservation
activities that were conducted in FY2018 and FY2019 (including activities started midway through the ﬁscal year).

Status of Environment-related Incidents, Legal Violations
In FY2020, there were no legal violations or environment-related incidents, ﬁnes and penalties that had a serious
impact on the environment.

54

Ecology Committee Leads Environmental Resource
Management
Most of the energy consumed by Nichirei Biosciences Inc. is used by its development center. For that reason, thecompany set up an Ecology Committee to make decisions related to environmental conservation. The committee's
work entails creating a wide range of proposals for saving energy, providing feedback on matters subject tocompany-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 inresources management.
In FY2018, the committee veriﬁed the eﬀects of air conditioner grills designed to increase the eﬃciency of heating
and cooling. The grills had been introduced in FY2017 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 tovisualize 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 conditioner grill

Discussion is encouraged at committee meetings

55

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 asustainable source of ingredients. Moreover, given that raw ingredients are harvested from natural ecosystems for its
business, the Group recognizes that it is similarly important for it to address environmental issues in the supply chain̶speciﬁcally, that it puts eﬀort into energy use and climate change issues, takes into account water usage andimpacts 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 asustainable supply chain so that it can provide safe and high-quality products and services in a reliable manner.

Nichirei Group Sustainable Supply Chain 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.

56

Management System
To promote eﬀorts to maintain a sustainable supply chain for all of Nichirei Group, the Group established the CSRManagement discussion meeting in FY2017. During this meeting, the Groupʼs common basic policy is examined,
issues being faced and eﬀorts being made by each operating company 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 companiesʼ 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 policy and asks suppliers to also assent toand comply with it.
Supply chain Meeting Launched
Since 2019, in accordance with the OECD Guidelines for Multinational Enterprises and the United Nations Global
Compact, the Nichirei Group has been promoting the understanding of, and working toward attaining, the Nichirei
Group Sustainable Supply Chain Policy and ensuring that our supply chain business partners are in step with theGroupʼs CSR procurement activities.
In FY2021 (ending in March 2021), we launched a Supply Chain Meeting to enable Group companies to participate informulating Group CSR procurement guidelines, as well as to share with us and examine issues regarding theaddressing of human rights due diligence.
In addition to Nichirei Foods having joined the July 2019 Sedex* London conference, the Group is engaged in ethicaland responsible business practices throughout our global supply chain.
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 have been set as a Group initiative.
* Supplier Ethical Data Exchange, a non-proﬁt organization established in the United Kingdom in 2004 to provide a platform
for managing and sharing corporate ethical information with the aim of realizing responsible business practices in supply
chains.

Priority Challenges for FY2021 (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 ofresources.

57

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, thecompany has been working with locals to catch octopi using pots, allowing it to provide high-quality octopus
ingredients. This technique is less likely to damage ﬁshing areas and overﬁshing. The group is working hard todevelop 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 todevelop and procure quality materials as it focuses on sustainable resources, as well as the importance of having asustainable environment and society.

Eﬀorts for MSC/ASC-certiﬁed Materials
Since 2006, Nichirei Fresh has been engaged in the Forest of Life Project*1 nature conservation activities involving
sustainable black tiger prawn farming and mangrove tree planting in Kalimantan, Indonesia.
These activities were extended to whiteleg shrimp ponds in Sumatra, Indonesia, and obtained Aquaculture
Stewardship Council (ASC) certiﬁcation*2 in 2018. From 2020, mangrove planting will begin in earnest, with plans toplant about 280,000 trees.
In addition, we are gradually increasing the handling of marine products certiﬁed*3 by the Marine StewardshipCouncil (MSC) and, June 2019, we have been handling 17 ﬁsh species of marine products. In the years ahead, weplan to increase the variety of sustainable marine products we handle.
*1 Forest of Life Project︓ https://www.nichireifresh.co.jp/inochinomori/*2 ASC certiﬁcation requires that marine products used have been cultivated in a sustainable manner.
*3 MSC certiﬁcation requires that wild seafood used has been caught using methods that do not deplete the natural supply.

■Nichirei Fresh products that have obtained ASC/MSC certiﬁcation (as of June 2019)
authentication

authentication acquisition number

ASC
Certiﬁcation Registry Number ASCC-01632

Black tiger shrimp、Whiteleg shrimp、Paciﬁc oyster

MSC
Certiﬁcation Registry Number MSCC-52165

Salmon varieties (pink salmon, king salmon, coho salmon, chum salmon,
sockeye salmon)、Flatﬁsh varieties (Kamchatka ﬂounder, yellowﬁn sole, dusky sole, whiteﬂounder)、Walleye pollack、Paciﬁc cod、Scallops、Herring、Capelins、Snow crabs、Arctic surf clams、Red king crab

ASC and MSC Certiﬁcations for Marine Products

Maintain a sustainable supply chain

58

Antibiotic-free Chicken
Antibiotic-free Chicken
https://www.nichireifresh.co.jp/product/livestock/detail/?id=376(Japanese only)
Chemical agents, such as antibiotics and synthetic antibacterials,
are used in general broiler chicken farming to treat diseases,
prevent the spread of illnesses due to farming conducted in tightspaces, and generate growth.
Nichirei Fresh Inc. has been selling antibiotic-free chicken since2004. While vaccinated, our poultry is not exposed to chemical
agents, including antibiotics and synthetic antibacterials, that could
generate antibiotic-resistant bacteria.* Instead, our poultry farming methods take full advantage of the innate
immunocompetence of chickens.
Our farming technology takes into consideration the rearing environment and also applies its own expertise topoultry farming, thereby raising the natural immunocompetence of chickens and developing their natural resistanceto diseases through the use of such substances as lactic acid, other probiotics, and plant-based herbal medicines that
help maintain the health of chickens and boost their immunity.
Since the manure of chickens exposed to antibiotics aﬀects soil bacteria and groundwater, the poultry farming
methods used to produce antibiotic-free chicken also contribute to the natural cycles intrinsic to ecosystems.

●Antibiotic-resistant Bacteria That Threaten Ecosystem Cycles* Drug-resistant bacteria: Protecting people from drugresistant bacteria (not aﬀected by antibacterial
agents) is becoming an issue worldwide. Those withweakened immunocompetence who are exposed tosuch bacteria may not respond to treatment with
antibiotics.
Drug-resistant bacteria have been found in livestock
continuously exposed to chemical agents such as
antibiotics and synthetic antibacterials. As a result of
growing consumer interest in the United States, meatfrom animals not exposed to antibiotics is becoming
increasingly popular.
We will continue to assess the issue of drug-resistantbacteria as we produce chicken that helps maintainhuman health.

59

Reliable Management System: Inspections to Ensure Use of Antibiotic-free Chicken
Nichirei Fresh is performing its own inspections to ensure that poultry is antibiotic free. These inspections roughly
break down into veriﬁcation of production processes and product inspections.
Personnel responsible for the inspections regularly visit production areas to verify that all production processes (fromthose in feed mills to those in breeding farms and processing factories) are being performed to the Companyʼsstandards.
In addition, the Nichirei Quality Assurance Divisionʼs Food Safety Research Center performs product inspections
involving testing for antibiotic residue in special feed used in the production of antibiotic-free chicken and in ﬁnal
chicken products.
Nichirei Fresh ensures that quality control is adequate by inspecting all its processes, from the animal feed it uses toﬁnal product shipments.
●Quality Control: Antibiotic-free Chicken

FA (free from antibiotics) chickens (Only available in Japanese)

Suppression of Methane Gas Emissions by Cattle
Suppression of methane gas emissions by cattle

60

Reduce Environmental Impact

Initiatives for Energy and Climate Change
Basic CSR Policy
Established as an environmental initiative, the Nichirei Groupʼs 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 Groupʼs 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 incooperation 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, fromprocurement 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 toaddress them. For instance, it views 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 theGroup. In its refrigerated logistics business, the Group perceives several risks, including an increase in the outside airtemperature, a rise in energy prices, compliance with regulations on alternative CFCs, and the emergence ofalternative 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 this as a business opportunity because it hedges against risks concerning materials supply tocope 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 the perspective 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.

61

Management System
Environmental management system

Regarding the actual values for the Group targets, actual greenhouse gas emissions for Nichirei Logistics Kanto, Inc.ʼsTokyo Distribution Center and Logistics Network, Inc.ʼs Shinagawa Distribution Center have been veriﬁed by a third
party under the Tokyo Metropolitan Governmentʼs (TMG) Tokyo Cap-and-Trade Program, and a reduction plan until
FY2020 has been submitted.

CO₂ emissions data published on the TMG Bureau of Environment website (9:00–18:00,
weekdays) (Only available in Japanese)● Energy Consumption of the Nichirei Group● SCOPE 1 and SCOPE 2 CO₂ Emissions of the Nichirei Group* Calculated based on the Act on Promotion of Global Warming Countermeasures.

62

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 the corporate group.
Preliminary investigations have shown that the Groupʼs 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 theoutsourced logistics categories. The Group will work to reduce GHG emissions across the value chain, such as bypromoting modal shifts in cooperation with suppliers.

Initiatives
The Nichirei Groupʼs approach to environmental conservation

Long-term Environmental Goals and Low-carbon Policies
We will implement low-carbon policies in response to one of the material matters and in pursuit of our long-term
environmental goals. We will actively implement the three measures during the 10-year span extending from 2021
through 2030.

Having endorsed TCFD recommendations,
the Nichirei Group is promoting the following low-carbon policies
Pillar of low-carbon policy

Overview

Target scope

1. The establishment oflong-term CO₂ reduction
goals

30% reduction in CO₂ emissions (compared toﬁscal 2016) in Japan, Scope 1 and 2 in 2030

Japan
Scope 1 and 2

2. The promotion of CO₂
reduction countermeasures
overseas

・ Promote data collection and other eﬀorts atoverseas worksites
・ Review and promote CO₂ reduction
countermeasures at overseas worksites

Overseas
Scope 1 and 2

3. The promotion of CO₂
reduction countermeasures
within Scope 3

・ Promote data collection and other eﬀorts within
Scope 3・ Review and promote CO₂ reduction
countermeasures within Scope 3

Scope363

● Nichirei Group CO₂ Emission Trends*1 Fixed power emission coeﬃcient: The CO₂ emission intensity unit of 0.412 [t-CO₂/MWh] announced by the Federation ofElectric Power Companies of Japan in FY2010, 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 Inc.; Nichirei
Fresh: Nichirei Fresh Farm Inc., Fresh Chicken Karumai Inc., Fresh Meat Sakudaira Inc.

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 thegreenhouse eﬀects of CO₂. The gas is produced in their stomachs, released internally when their food is broken down
and digested, and then release externally. Since prevention of 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 (the ﬁrst stomach) during the digestive process isturned into methane gas by methanogen, and released externally through burps. If cattle are given ﬂaxseed oil fatty
acid calcium*1, the hydrogen in their rumen combines with the unsaturated fatty acids in the oil to form saturated
fatty acids. Since research results show that methane gas production can be suppressed, to this end Nichirei has
been testing crossbred cattle (male Wagyu and female dairy cattle) on domestic farms since FY2010.
Using Kyoto Universityʼs life-cycle assessment (LCA)*2 method 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 whenconventional fattening methods are used. Further, there is an improved omega balance*3, while feed costs are lower
due to the shorter 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 to cross-breeding,
Nichirei is also expanding this production method to crossbred Wagyu and Holstein cattle (bulls).

64

● Methane Gas Production● Evaluation of Impact on Global Environment*1 Flaxseed oil fatty acid calcium: A fusion of calcium with the oil extracted from ﬂax seeds rich in alpha-linolenic acid (omega3 fatty acid).
*2 Life cycle assessment (LCA) is the technique of comprehensively analyzing and assessing a productʼs 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.

Reducing Container and Packaging CO₂ Emissions
Since 2006, Nichirei Foods Inc. has been striving to reduce the amount of plastic used for commercial frozen foodproduct containers and packaging.
Most recently, the eﬀorts have succeeded for containers and packaging used for seven target items. Some 200 tons
less is now used compared with the amount previously used. Nichirei is still working to cut back the amount of plastic
it uses to reduce even further its discharge of CO₂.

65

■Past Plastic Reduction Initiatives
Fiscalyear

Products

Measures

Since
FY2007

Imagawa-Yaki(Japanese waﬄe)

Elimination of trays

Since
FY2010Yaki-Onigiri(grilled rice ball) 10-packElimination of trays

Since
FY2012

Honkaku-Itame Cha-Han(fried rice)

Thinner packaging

Since
FY2015Yaki-Onigiri(grilled rice ball) 10-packThinner packaging

Since
FY2016

Honkaku-Itame Cha-Han(fried rice)

Thinner packaging (second
time)

Since
FY2019

Ebi-Pilaf(shrimp pilaf) andChicken-Rice(chicken rice)

Thinner packaging

Since
FY2020Ebi-to-Cheese-no Gratin(shrimp gratin) andEbi-to-Cheese-no
Doria(shrimp rice gratin)

Thinner trays, reduced tray
handle width

66

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 FY2015, an analysis of data from all factories was conducted, operational issues were extracted, and measures
were implemented to improve those issues. Outcomes from veriﬁcations conducted at a number of factories havebeen expanded to other factories.
In FY2018, 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 for washing and updated the air conditioning. Through various
initiatives at its factories, the company is reducing its CO₂ emissions intensity.
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 FY2013, Nichirei transitioned from using fuel oil to municipal gas to run the boilers at the Nagasaki plant, later
implementing the same change at its Funabashi and Yamagata plants. Along with fuel conversion, the switch to higheﬃciency equipment and the promotion of energy-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 installedat its Funabashi No. 2 Plant. The drainage produced by this kind of steam is normally collected and then emitted asis, without using the ﬂash steam that forms when it is exposed to the air. Nichirei Foods, however, installed a systemfor collecting the ﬂash steam, with a view to reusing it in preprocessing steamers. The system releases the hightemperature, high-pressure drainage into a collection tank, returns the high-temperature drainage down an existing
route using a pump, and sends the resultant ﬂash steam to the preprocessing steamer via a pipe so that it can beused. Use of this system has enabled the company to reduce the amount of steam used in its steamers, and cut CO₂
emissions by 21 tons per year.
Greening Initiatives
Nichireiʼs 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

67

Initiatives in Cold Storage Facilities and Logistics Centers
Chloroﬂuorocarbon (CFC) Initiatives
Preventing Refrigerant Leaks to Boost Operating Eﬃciency
The Nichirei Logistics Group is stringently checking equipment to reduce refrigerant leaks at all domestic centers.
In FY2014, the Group installed high-sensitivity detectors, which are 10 times more accurate than those previously
used, and can detect even minor leaks. By managing the amount of refrigerant used and eliminating leaks, theGroup can achieve near-optimum equipment functioning. At the same time, the Group is working to avoid theunnecessary 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 withthe refrigerant 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 refrigerationequipment and to improve the eﬃciency of equipment operations and maintenance. Visualizing energy consumption
and analyzing operational improvements will assist the high-eﬃciency operation of cold storage facilities and will help
reduce CO₂ emissions.

● Conceptual Diagram of Joint Demonstration

68Use of Natural Refrigerants
At its cold storage facilities, the Nichirei Logistics Group is promoting a switch from refrigeration equipment usinghydrochloroﬂuorocarbons (HCFCs) to that using natural refrigerants. As a matter of policy, the Group chooses naturalrefrigerants when building new cold storage warehouses and extensions to facilities.

Example of Switch to Refrigeration Equipment Using Natural Refrigerants
FiscalYear

Facilities Upgraded to
Natural Refrigerant
Equipment

Program Providing a Subsidy for Upgrade

FY2014

Logistics Network Sugito TC

Subsidies for businesses that rationalize energy usage

FY2015・Nichirei Logistics Kansai
Sakishima DC
・SCG Nichirei Logistics Co.,
Ltd. (Thailand)―

FY2016・・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 equipment using energy-saving natural refrigerant

FY2017・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 equipment using energy-saving natural refrigerant

FY2018・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-eﬃcient commercial refrigeration and air
conditioning, for the creation of a CFC-free society

FY2019・Nichirei Logistics Kyushu
Kagoshima Futo DC 1st
Building

Project to Accelerate Introduction of Energy Saving-Type Natural
Refrigerant Equipment To Realize Fluorocarbon-Free and Low Carbon
Society

FY2020・Nichirei Logistics
Hokkaido
Sapporo Oyachi DC 2nd
Building
・Nichirei Logistics Tokai
Haruhi DC 1st Building
・Nichirei Logistics Kansai
Osaka Shinnanko DC 2nd
Building

Project to Accelerate Introduction of Energy Saving-Type Natural
Refrigerant Equipment To Realize Fluorocarbon-Free and Low Carbon
Society69

Receives Special Review Committee Award
Nichirei Logistics Engineering Inc. (representative director, president: Tsutomu Ito), which handles engineering
operations for Nichirei Logistics Group Inc., won the Special Review Committee Award in the 22nd Protect the Ozone
Layer, Prevent Global Warming Awards sponsored by the NK Industrial Research Institute, operated by the Nikkan
Kogyo Shimbun, Ltd.
The award was received on September 12, 2019, in recognition of eﬀorts to reduce CFC leaks and environmental
impacts through the use of systems that predict and diagnose refrigerant leaks.
In addition to further reducing our environmental footprint and responding to customer demands, we plan to better
oversee refrigeration equipment maintenance and repair plan proposals, so as to provide overall support that
includes recommendations for energy conservation and cost reduction through low-price purchasing.

Initiatives in Transportation and Delivery
Optimal Logistics for CO₂ Reduction
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 environmental measures. It can only be used byshippers and logistics ﬁrms certiﬁed as using a minimum percentage of marine transportation. Prioritizing the
reduction of CO₂ emissions during the transportation and delivery of products, Nichirei Foods has obtained Eco Ship
Mark certiﬁcation.
During FY2018, despite having promoted a modal shift from trucks to rail for some of its transportation fromfactories in Hokkaido to Kanto and for some of its transportation from Kanto to Hiroshima, an increase in sales
volume resulted in an increase in CO₂ emissions compared to the previous ﬁscal year. In FY2019, Nichirei Foods will
promote a reduction in domestic transportation distances by changing the unloading ports for foreign imports, andwill promote a greater use of rail by reviewing its logistics bases.
The Nichirei Logistics Group believes that contributing to the lives of consumers by shipping food is its mostimportant duty. Using the best logistical solutions, such as transfer center functions and joint shipping, it isundertaking to provide consumers with optimal logistical eﬃciency, while also reducing CO₂ emissions. In addition, toincrease 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 ofdelivery requirements (shipping timeslots, locations), which result in reduced CO₂ emissions.

70

● CO₂ Emissions and Intensity during Transportation of Products by Nichirei Foods* The method for calculating energy consumption was changed from the ton-kilometer method to the fuel method.

Eliminating CO₂Emissions from Transportation
Promoting a modal shift1
Since 2003, in a bid to reduce its environmental footprint, the Nichirei Logistics Group has been switching the meansof transportation it uses from haulage by road to that by rail and sea. And, in 2009, the ferry transportation routefrom Hokkaido to Kyushu was extended, resulting in a 30% reduction2 in CO₂ emissions.
Notes:
1. The conversion of road and air transportation by that by rail and sea.
2. The 30% reduction in CO₂ emissions due to modal shifts in Japan is based on per-route calculations.
3. An institution administered by the Ministry of Land, Infrastructure, Transport and Tourism and other bodies that awards
excellent initiatives that promote CO₂ reduction in the logistics ﬁeld.
4. 3PL:Third-Party Logistics● Comparison of total transportation distances

71

Activities with European Logistics
The Nichirei Logistics Groupʼs overseas business began with its expansion into the Netherlands in 1988. As of March
2020, Nichirei Holding Holland B.V. has eight companies̶including cold storage facilities and low temperature
shipping businesses̶and 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, a modal shift has been promotedin 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.
Hollandʼs 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 the containers. 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 FY2012. Meanwhile, the social contribution activities of its shipping business include the
donation to charities̶of course with the permission of the consigners̶of goods it has had in storage that are pasttheir 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, andencourages them to obtain Green Management Certiﬁcation.
In an eﬀort to improve the quality of shipping by these companies, Logistics Network holds driver tournaments andeco-driving seminars at six locations across the country each year. 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 the high quality of thoseservices, gain inspection skills, and increase their awareness of safe driving, while at the same time giving eachindividual pride in their work and a sense of social responsibility. The seventh national tournament was held in
FY2020 with a view to further improve shipping quality.
In addition, Logistics Network began a full-ﬂedged initiative in FY2015 for using pallets in its main shipping
operations and establishing services with ﬁxed arrival and departure times. The downtime at bases and time spentloading 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 less of an environmental impact.

72

Driver contest
Green Management Certiﬁcation（NK Trans is working to reduce the environmental impact of its business activities to better co-exist with society asa 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, andcompliance with the relevant waste disposal laws.
As a result, the Numazu Logistics Center obtained green management certiﬁcation in January 2012, while the NiizaOﬃce (transportation) obtained it in March 2014. Kyokureiʼs main oﬃce and logistics centers (in the Tokyo districts of
Yamashita, Daikoku, Atsugi, and Nakai) have obtained Green Management Certiﬁcation, as have all distribution
centers of Kyokurei Operation.
* Green management certiﬁcation: The certifying organization, the Foundation for Promoting Personal Mobility and EcologicalTransportation, 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 Japanʼs Foundation for Promoting Personal
Mobility and Ecological Transportation.

Driver Advance Reservation System
https://www.nichirei.co.jp/news/2017/298.html(Japanese only)
At distribution centers, truck arrivals tend to be concentrated at the same times. Being uncertain of what cargo isonboard further complicates the 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) canreserve their preferred time against available loading/unloading times set for each distribution center. Details of theloaded cargo are also sent to the distribution center in advance, which means that the checking of orders by shipping
companies, which used to be done once the truck had arrived, can now be performed ahead of time. This facilitatesloading and unloading operations, which in turn, shortens the hours that each truck is on the road, and ultimately
leads to a reduction in CO₂ emissions. Starting with the Logistics Networkʼs Sugito DC and Osaka Futo DC, thesystem will be gradually rolled out to other distribution centers.

73

Corporate Collaboration for More Eﬃcient Energy Consumption
The Nichirei Logistics Group is working to reduce electricity consumption during product storage, as well as CO₂
emissions and fuel consumption for transportation and production by increasing the eﬃciency, across the board, ofthe supply chain involved in logistics, production, and storage.
Thus, both Nichirei Foods and Hokkaido Foods, one of the formerʼs sub-contractors, secured safety stock in order toprevent inventory shortages and the only partial sharing of information. In addition, the business ﬂuctuations in
production and shipping caused by sales resulted in a major burden for both companiesʼ supply chains.
In FY2010, The Nichirei Logistics Group took over control of Hokkaido Foodsʼ logistics and introduced several
improvements. The result of their study of the business ﬂuctuations of the logistics side of business, which had been
an ongoing problem right from the beginning, led to a suggestion that there be collaborative management between
three companies. This would cover operational information, sales plans, re-stocking and inventory plans, productionplans, and even shipping plans, aimed at leveling out logistics. FY2012 saw the start of the three companiesʼ
improvement project begin. In October of 2012, it went into full operation, and improvement activities continue tothis day.

74

● Three Companies Collaborate for Cut Costs, Improve Shipping

Renewable Energy
Purchase of Green Energy
As it promotes the use of renewable energy, the Nichirei Group has installed solar power generation equipment inplants, refrigerated warehouses and other facilities, while purchasing Renewable Energy Certiﬁcates (RECs).* Eachyear since 2007, we have purchased certiﬁcates worth one million kilowatt hours (kWh) in biomass-generated power.
In addition, since March 2020, Nichirei Foods has purchased ten million kWh worth of RECs to cover all the electricity
used to power production lines for Honkaku-Itame Cha-Han (fried rice).
* These represent units of environmental value (e.g., the reduction of CO₂ emissions resulting
from the generation of electricity by using renewable energy sources) that can be bought andtraded, allowing certiﬁcate owners to claim to have purchased electricity generated using
renewable energy sources (oﬀsetting).

75

Solar Power Generation
The Nichirei Group has installed solar power generation equipment at all its Group companies. In FY2020, theequipment generated 2,068,000 kWh of electricity and helped reduce CO₂ emissions by 1,003 tons.

Nichirei Foods

・Funabashi Plant
・Nichirei Ice Inc.

Nichirei Logistics Group・Sugito DC
・Matsue DC
・Kushiro DC
・Sakishima DC・Kyokurei Inc. Daikoku DC

Nichirei Biosciences

・Global Innovation Center

Sakishima DC

Matsue DC

Kushiro DC

Initiatives at Head Oﬃce, and Oﬃces

The Nichirei Group uses energy-saving equipment in its buildings, conserves energy in its oﬃces, and uses lowemission 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.
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 thatcreate the steam used in its food processing equipment.
Initiatives in Retail Stores and Customer-related Areas

Nichirei Foods: Good for lunches! Good for the forest! Program

Activities of Industry Organizations
As part of its activities to avert climate change, the Nichirei Group is a member of industry organizations, andcollaborates in those organizationsʼ 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.
76

Reduce Environmental Impact

Initiatives for Water Resource Conservation
Basic CSR Policy
Established as an environmental initiative, the Nichirei Groupʼs 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 offarm produce and meat and 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 FY2017–FY2019), 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 in water resource conservation through eﬃcient water
usage aimed at sustainable water usage.” By properly managing water use and drainage, the Group will maintaineﬀorts for sustainable water usage and conservation, and reduce water usage 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 inJapan are included in the Groupʼs CSR Report for external publication. These ﬁgures, along with other details of the
CSR Report, are approved by management and other members 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 Groupʼs website and intranet. Hands-on environmental education programs for employees are also conductedat the forests receiving support, designed to raise employee awareness for the environment. In FY2020, we worked
on a water risk assessment and disclosed the results.

Environmental Management ＞ Management System

77

Initiatives
In terms of water-related initiatives associated with business activities, in addition to water-saving eﬀorts at its foodfactories and distribution centers, the Group is raising employee awareness such as by displaying posters. At
worksites in Japan, the Group keeps track and manages consumption of water and quality of wastewater throughregular monitoring in compliance with various laws and regulations. Forest conservation activities have also been
conducted, leading to the conservation of biodiversity through protecting and caring for water.
We have set reduction targets for each site and are working to reduce water throughout the Group.
Please refer to the following websites for information on the Groupʼs main initiatives.

● Water Usage (By water intake source)

Implementation of water risk assessment
The Nichirei Group recognizes the importance of water resources used for raw material production and business
operations in order to build a sustainable supply chain, which is the core of our business, and is working to conserve
water resources and reduce environmental impact.
When tackling water risks, it is important to understand the local situation as well as the eﬀorts of the sites.
As a water risk assessment, we evaluate the water risk at our sites using a water risk assessment service from athird-party organization.
In addition to the WRI Aqueduct *, which assesses regional water risks, we conducted a questionnaire survey of all
Nichirei Group sites in order to understand the status of eﬀorts at the sites.
A water risk assessment was conducted for all of the Nichirei Group's domestic and overseas bases (152 bases),targeting the WRI Aqueduct evaluation items “water volume, water quality, regulation and reputation” (Fig. 1). Table
1 shows the relationship between the number of sites located in water stressed areas and the amount of water
intake. We will continue to implement measures to reduce water risk at our three sites (one in China and two in
Thailand) where water stress is extremely high.

78

Figure 1 Water risk assessment ﬂow chart* WRI Aqueduct: A tool released by the World Resources Institute (WRI), an international environmental NGO, to easily
evaluate the world's water risk from location coordinates or addresses.

Table 1 Water stress and water intake
Water stress

Total

Fiscal 2019 water intake [m³ / year]

Number ofbases

Surfacewater

Groundwater

Third party
water

Total

152

2,497,656

1,809,223

2,885,798

7,192,677

Extremely High (>80%)32,371,459

0468,3822,839,841

High (40-80%)

0

0

0

0

0

Medium - High (2040%)540458,403

1,491,420

1,949,823

Low – Medium (1020%)

77

2,400

1,323,084

737,805

2,063,290

Low (<10%)18

123,797

27,736113,657

265,190* Excludes sites where the business scale is planned to be reduced and oﬃces / warehouses at overseas sites

Nichirei Foods: Good for lunches! Good for the forest! Program

Environmental management > Medium-term targets and results

79Reduce Environmental Impact

Initiatives for Biodiversity Conservation
Basic CSR Policy
Biodiversity Policy

Management System
As “living in symbiosis with nature” is one of the three priorities of the Nichirei Groupʼs Environmental Policy, theGroup is committed to environmental 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 for biodiversity conservation andenvironmental awareness raising at worksites and suppliers.
The initiatives are reported by each operating companyʼs Environmental Protection Committee and by the Group
Environmental Protection Committee, which meets twice a year. The environmental protection policies and strategiesof the entire Group are then determined based on the content and progress of these initiatives. Initiatives forbiodiversity are carried out based on the formulated plans.

Initiatives
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 of plantations, aﬀorestation, and shrimp farming. The rapid increase in the numberof shrimp farms in coastal areas has led to the successive felling of 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 Forestof 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 and biodiversity conservation, by selling shrimp cultivatedtraditionally without using formula feed or electricity, and donating a portion of the proceeds to MMAʼs 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-year80period, trees have been planted across an 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.

About half of the islandʼs forest has been

North

Shrimp that

Regeneration oflost over the past 50 years

Kalimantan

have grown big

mangrove trees

Please refer to the following website for further details.

Nichirei Fresh Forest of Life Project (Only available in Japanese)

Some Sales Proceeds Support Forest Preservation
Nichirei Foods: Good for Lunches! Good for the Forest! Program
Nichireiʼs CSR activities include the purchase of forest credits to support forest preservation activities.
In gratitude for the earthʼs 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 program̶called Good for
Lunches! Good for the forest!̶go for the purchase of CO₂ credits.

Nichirei Foods: Good for lunches! Good for the forest!

Fukushima: Environmental Research and Protection, Conserving Biodiversity
Nichirei owns land near Lake Hibara in Fukushima Prefectureʼs Urabandai region. 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 from the Urabandai area, but more than
130 years on, one can see vegetation returning: red pine forests, white willows, reeded wetlands, and aquatic plantclusters in marshlands.
The red pine forests, planted by people who want to see the return of greenery, continue to spread.
But since the Companyʼs land remains unforested, it provides a valuable area for observing the transition of virginnature.
Nichirei has supported the research activities̶carried out since FY2012 in the Urabandai area̶by the Support
Division for Projects in Natural Symbiosis and Regeneration at Center for Practical and Project-Based Learning,
Graduate School of Symbiotic Systems Science and Technology, Fukushima University.
In FY2020 (ended in March, 2020), we supported an investigation of insect fauna inhabiting reed marshes in
Urabandai area Nichirei-owned land, as well as a study into the diversity of plant species conducted with the goal of
publishing a book on Urabandai ﬂora.
81

Water quality surveys in the Urabandai area wetlands

The Himeshiro dragonﬂy: a new species

Protecting Endangered Orchids, Biodiversity Conservation
https://www.nichirei.co.jp/english/csr/environment/action/oﬃce
Since FY2004, the Nichirei Group has helped in the conservation andregeneration of the endangered orchid Cypripedium macranthos var.
macranthos and other species through research on and the breeding oforchids and other plants in Fujimi-machi, Nagano Prefecture.
In FY2015, some artiﬁcially propagated orchids̶of the genus Cypripedium
macranthos var. macranthos̶ﬂowered and, in collaboration with the local
government, we have achieved continuous ﬂowering since then, and 32
strains have achieved ﬂowering in FY2020
As a result, Nichirei entered into Biodiversity Conservation Partnership
Agreement with the Fujimi-machi Atsumorisou Regeneration Committee inFebruary 2019.
Under a three-year (April 1, 2019 to March 31, 2022) agreement, the Groupwill provide the technologies necessary for the conservation andregeneration of Cypripedium macranthos orchids and cover a portion of thecosts.

82

Reduce Environmental Impact

Emissions into the Atmosphere
Management System
The Nichirei Group manages and stores PRTR substances and PCBs (polychlorinated biphenyls) in accordance withstatutory standards for the management of chemical substances. Furthermore, during FY2019, there were noenvironmental accidents or violations of laws or regulations that could have a material impact on the environment.

Initiatives
Reduction of NOx, SOx, and PM Emissions
Nitrogen oxide (NOx) and sulfur oxide (SOx) are produced when fuel oil and gas are burned in food factory boilers.
Through proper facility management at its factories, Nichirei is complying with emissions standards stipulated by law
and aiming for an overall reduction in emissions volume. The Nichirei Logistics Group is promoting increased logisticaleﬃciency through joint shipping and modal shifts making use of railways and ferries. The Group is making progresson the reduction of NOx and particulate matter (PM) emissions by using exhaust regulation-compliant vehicles,
conducting proper vehicle maintenance, and promoting such initiatives as eco-driving. Furthermore, there are noemissions from the Nichirei Groupʼs business corresponding to the volatile organic compound (VOC) emission
standards.

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

83Use and Management of CFCs
Chloroﬂuorocarbons (CFCs) are said to be among the substances destroying the ozone layer. Their production is
being phased out, and management 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. Althoughappropriate equipment management ensures that the refrigerant, which circulates within sealed cooling equipment,does not leak, the Nichirei Group disposes of it as required 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 theCO₂ 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.
Nichirei Foods is systematically updating several freezer refrigerators from freon equipment to natural refrigerant
equipment every year. 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 fromfreezing facilities that use CFCs to freezing facilities that use natural refrigerants for all its other existing facilities.

Use of natural refrigerants

84

Reduce Environmental Impact

Management of Wastewater, Waste Matter, andChemical Substances
Basic Philosophy
Established as an environmental initiative, the Nichirei Groupʼs Environmental Policy includes a theme of promoting
sustainable recycling. The Group recognizes that corporate business activities have a considerable impact on thenatural environment. Emitting pollutants and using chemicals through business activities has an eﬀect on the air andsoil, and expanding business activities results in more waste being generated and a greater eﬀect on valuable
resources. The Groupʼs business, in particular, relies heavily on natural ecosystems for the procurement ofingredients. Any loss of these ecosystems would be a signiﬁcant business risk, and in addition, the generation of foodwaste 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 to develop 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 foodfactories in Japan.

The Nichirei Groupʼs approach to environmental conservation

Management System
Environmental management system

85

Initiatives
The amount of waste discharged outside worksites in FY2018 was 45,200 tons, and the recycling rate was 99.5%.
Looking at waste destined for ﬁnal disposal, in some cases, depending on the district, waste paper and other types ofwaste 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 Group will work on further
reductions, including by controlling the amount of waste produced. During FY2018, the Group emitted 9 kg of
specially controlled 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

86

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 afood 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 Group is collaborating with local residents to build a regional recycling
production system using chicken guano.
Project for Recycling-based Production via Chickens
At the Hirono facility operated by Nichirei Fresh Farm, chicken droppings are processed into organic fertilizer, which isused to produce feed stock rice for specialized 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 grownusing rice paddies lying fallow because of rice production adjustments. The recycling-based production cycle ofchickens thus contributes sustainably to regeneration of the local farming industry.

Project for recycling-based production via chickens

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 plant, and recycled for use
as fertilizer and feed. Our other factories entrust the processing of residues to recycling companies that turn theleftovers 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, anddisinfectants. The Nichirei Group cleans 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 FY2020, there were no materials subject to notiﬁcation under the Pollutant Release and Transfer Register*(handling volume of 1ton or more).
We will continue to properly manage chemical substances in the future.

* The laws concerning the Pollutant Release and Transfer Register refer to the collection and publication of data related to therelease into the environment of chemicals, from any source, which could possibly adversely aﬀect the lives, growth, ordevelopment of humans, animals, or plants.

87

Management of PCBs
Polychlorinated biphenyls (PCBs), a group of man-made compounds, were previously used as insulating oil intransformers, but their use was banned in the 1970s, after their toxicity became apparent. In Japan, equipment thathas 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 nationʼs ﬁve government-run PCB disposal
plants. Three transformers collected from the Nichirei Group in FY2020 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 and disposed of during an inspection in FY2006. In addition, when demolishing oﬃce
buildings that have been closed, the Nichirei Group does another survey 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.
In FY2020, we conducted soil analysis and performed appropriate treatment in the construction of the Nichirei
Logistics Tokai Inc. Nagoya minato DC.

88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 thatthe earthʼs limited resources can be used continuously as much as possible. For bioresources that the Group isunable to use eﬃciently and economically or is unable to use completely, it is focusing on reusing these bounties ofnature in animal feed or fertilizer and returning them to nature.

Management System
Environmental management system

89

Initiatives
Suppression of Methane Gas Emissions by Cattle (Nichirei Fresh)

Suppression of Methane Gas Emissions by Cattle (Nichirei Fresh)

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 inpetroleum-derived plastic materials and a reduction 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 of plastic 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 (Japanese only)

Reducing plastics in containers and packaging

Forest of Life Project (Japanese only)90Reduce Environmental Impact

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

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

Management System
The Group accepts a range of inquiries via telephone, letter, and online points of contact.

Inquiries

In addition to covering areas such as organizational management and business processing, Nichireiʼs Corporate
Internal Audit Division also performs Group management audits on compliance with environment-related law andimportant environmental protection matters. During an audit, circumstances surrounding the worksite andrelationships 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.

91Reduce Environmental Impact

Long-term CO₂ emission reduction target
Long-term CO₂ emission reduction target
Nichirei Corporation is expanding their business globally in a wide range of food supply chains. We recognize that it isimportant to consider the impact of climate change in order to carry out sustainable business in the future. With
using climate change scenario analysis put forward by TCFD to examine the current and future climate change risks
and opportunities to us, we concluded that it was important to reduce CO₂ emissions in eﬀorts to realize a low
carbon society. On June 24, 2020 Nichirei Group established long-term environmental targets and disclosed the CO₂
emission reduction targets as described below. In this study, the IPCC Fifth Assessment Report (current scenario of
3-4℃) and the IPCC Special Report of 1.5℃ (1.5℃ stricter scenario) were used as reference data.

■Nichirei Group's long-term CO₂ emission reduction target／Target period: 2021-2030 (10 years)
Baseline Year

2015

Target Year

2030

% Reduction

30%

Short Target Description

This target was established in consideration of the estimated CO₂
emissions of Nichirei Corporation based on past results, the assumed
reduction amount in case the power coeﬃcient of the power company is
reduced as targeted, the amount of renewable energy used and so on.

Target Scope (Scope1,2 or 3）

Japanease domestic Scope1, 2Category (Absolute emission or
Intensity)

CO₂
IPCC AR5https://www.ipcc.ch/report/ar5/syr/Source (URL)

IPCC SR15
https://www.ipcc.ch/sr15/
Carbon Tracker (2019), “LAND OF THE RISING SUN AND OFFSHORE
WIND”
https://carbontracker.org/reports/land-of-the-rising-sun

Science-based target* (Y/N)

Yes(Press Release) About the Formulation of Long-Term Environmental Goals and Endorsement of
TCFD Recommendations

92

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 totheir development through its 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 andother 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 bycarefully selecting materials, creating good ﬂavors and health, and through stable and eﬃcient logistics. We
also contribute to society in areas other than our business activities, based on goodwill, empathy, and a senseof duty. Our social contributions are centered on food- and logistics-related education, regional contributions,environmental protection, disaster relief, and sports sponsorship.

We examine social issues that are highly relevant to our business, and work in ﬁelds where we can make use of ourstrengths. For example, we provide education of food and logistics to children and students in the local area, andmake contributions by providing frozen foods and low-temperature transportation to the food bank.

Management System
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,
we support employee activities through the volunteer leave system.
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

93

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 huladancing by local groups. The Nichirei Group wanted its facilities to be used for those pursuits, so it demolished thebuildings and planted grass, for which it cared.

UrabandaiContributions through Use of Company Resources > Urabandai

Food and Logistics Education Making Use of BusinessCharacteristics
Nichirei Foodsʼ 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 is important that they understand the importance of food andare 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

94Children on a Factory TourThe concepts are See! Learn! Enjoy!, and Nichirei Foods employees are the teachers. They use videos andPowerPoint slides to explain the frozen food manufacturing process to elementary school students, including the
production of frozen food products, Honkaku-Itamae Cha-Han (fried rice) and Imagawayaki. The program, whichallows children to have fun while learning, is full of frozen food quizzes and videos that they otherwise would neversee, even on an actual tour. In that way, the program teaches the students about Nichirei Foodsʼ careful approach to
manufacturing and the merits of frozen food. In FY2020, the Group held 52 factory tours with 1,700 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
FY2020, this event was held eleven times with more than 400 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 Foodsʼ frozen products.
The content, which allows kids to have fun while making lunch, helps deepen their interest in, and concern
regarding, food. In FY2020, this event was held 11 times with 4,400 people participating.
“Delicious” Words

Food and Logistics Education Making Use of Business Characteristics > “Delicious” words

Nichirei Fresh Food Education Activities
Food education classes are organized in elementary schools and preschools in the town of Karumai using a dish theGroup call Fresh Chicken Karumai. In the classes the Group presents easy-to-understand information that includes
the following: Iwate Prefecture boasts the nation's third-highest production of poultry, after Miyazaki and Kagoshima
Prefectures; the companyʼs Junwakei breed of chicken is raised on feed rice 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.
95

Logistics-related Education
Lectures Oﬀered at Universities

Food and Logistics Education Making Use of Business Characteristics > Lectures oﬀered atuniversity

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 Groupʼs business, followed by discussions concerning foodlogistics and tours of logistics centers. Students who attended told us that this opportunity had enabled them tounderstand the importance of food logistics, and that it increased their interest in logistics as a commercial activity totransport goods to customers. The Group will continue to participate in tertiary-level courses, to further broaden theappeal of the logistics industry.

96

Workplace Tours and Job Experience
Logistics Center Field Trip/Internship
The Nichirei Logistics Group continues to accept business site tours centered on elementary and junior high school
students in the surrounding area at distribution centers around the world. In July 2019, at the Sendai DC of the
Nichirei Logistics Tohoku Inc., we conducted a tour for a total of 29 people (parents and children living in theprefecture) who participated the event named “Join an Expedition to Explore the Port of Sendai During the Summer
Holidays” sponsored by the Ministry of Land, Infrastructure, Transport and Tourism. As part of our community
contribution activities, the Sendai DC holds similar tours every year for elementary school students during thesummer vacation to deepen their understanding of the companies that use Sendai Port, including the role of "thePort". On the day of the event, after explaining the outline and business contents of the center, we visited thepremises of each temperature zone and conducted an experiment to freeze wet towels in the freezer. By actuallyexperiencing the distribution center, we had them deepen their understanding of food distribution.

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 theywanted Nichirei to contribute to similar activities and, while searching for a partner with 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 beendamaged 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.
* Second Harvest Japan: First food bank in Japan. Gained corporate status in July 2002. Provides food with a safety guarantee
to the needy.

Example of a broken carton, its content is hard to use

97Support through Business Activities
Nichirei Hagukumi Forest
Nichirei Foodsʼ Mori factory in Hokkaido began a partnership with the town of Mori in Kayabe District, Hokkaido toperform forest maintenance on town-owned lands as part of the “Nichirei Hagukumi Forest” initiative. This initiative,”Good for the forest!,” as part of the Groupʼs 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, thetownʼs 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 thepine trees of the Satsuki Matsubara area in Munakata City, Fukuoka Prefecture, and Nichirei Foodsʼ Shiroishi Factory
supporting beech forestation eﬀorts in the Zao area.
Continuation of support for areas aﬀected by the Great East Japan Earthquake ̶ On-site class "Virtual Factory Tour"
held at an elementary school in Ishinomaki City (Nichirei Foods)
In an eﬀort to support communities that have been aﬀected by the massive earthquake and tsunami that struck
Japanʼs 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 involvedin making frozen food products, Nichirei Foodsʼ safety and security initiatives, and its fastidious manufacturing
techniques. In FY2020, cooking classes were held in Ishinomaki City, Miyagi Prefecture at Futamata Elementary
School and Minato Elementary School, with a total of 41 children participating.
Forest of Life Project (Nichirei Fresh)

Forest of Life Project (Only available in Japanese)

Providing Test Drugs to Myanmar Medical Institutions (Nichirei Biosciences)
Since 2006, we, Nichirei Biosciences, have been donating our test drugs for pathological examinations, which are
diﬃcult to obtain in Myanmar, to local medical institutions through Department of Pathology, Niigata University
School of Medicine. Our donations include forty-three types of antibodies for immunostaining and reagents, to Firstand Second Medical Universities, Sanpya Hospital, and Yankin Children Hospital to a total of six facilities, and these
antibodies have been used for medical treatment like practical research and pathological diagnosis. In January 2020,
Dr. Makoto Naito of Niigata University visited the Second Medical College with our products and explained theprecautions, main points of quality control, as well as the importance of immunostaining in pathological diagnosis
through his own experiences. We would like to continue contributing to the improvement of pathologicalresearch/diagnosis and medical education in Myanmar.

98

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 andtheir families. The foundation A Dream A Day In Tokyo conducts activities to help give courage to children with major
illnesses, reduce their familyʼs anguish, and create happy memories during their trip to Tokyo. As an endorsee of thefoundationʼs 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.

Nichireiʼs training center provides lodgings

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

99

Donations and Other Support
Donations to Support Disaster-hit Areas
In FY2012, Nichirei decided to donate 10 million yen per year for ﬁve years, for a total of 150 million yen, to each of
the three prefectures̶Iwate, Miyagi, and Fukushima̶hardest hit by the Great East Japan Earthquake of March 11,
2011. At Nichirei Ladies, the oﬃcial Ladies Professional Golfersʼ Association of Japan tour held in June 2011, allentrance 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 to requests from the prefecture and provided 9,000 Restaurant Use Only beef curry meals to the Uki
City Hall.
In response to support the early recovery of devastated area, we oﬀered some donations through the Japanese Red
Cross Society and also by the Nichirei Fureai Fund, in which the company matches contributions made by employees,
we donated to the Japanese Red Cross Society to assist with initial restoration eﬀorts in areas heavily damaged by
the disaster.

FY2019The Heavy Rain
Event of July2018

Typhoon Faxai

FY2020Typhoon Hagibistenmillionyen

Donation through the Japanese Red Cross Society

one
millionyen

Donation through the Japanese Red Cross Society by Nichirei Fureai
Fund

two
millionyen

Donation through the Japanese Red Cross Society by Nichirei Fureai
Fund (one million yen each for Chiba Prefecture and Tokyo)

tenmillionyen

Donation through the Japanese Red Cross Society

one
millionyen

Donation through the Japanese Red Cross Society by Nichirei Fureai
Fund

Fureai Fund Donations
The Nichirei Groupʼs social contributions include fund-raising activities and donations. Through endorsement
contributions from employees and donations 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 bynatural disasters and other events.
Through the Central Community Chest of Japan and the Tokyo Good Will Bank, we provide support via graduation
congratulatory money to help support the independence of children in social care, as well as via “childrenʼscafeterias” to aid those in diﬃcult circumstances and victims of bullying, etc. Nichirei also provides support for
preparation expenses for disaster relief to the Japanese Red Cross Society.
In FY2019, we contributed 310 million yen as the total amount of group social contributions(donations, etc.).

100

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 wellas conservation activities and the sustainable use of natural resources in order to maintain the preservation ofJapanʼs splendid natural environment.
Eco-caps
At all workplaces of the Nichirei Group plastic bottle caps from PET bottles are collected to support the activities ofNPOs that sell them as plastic raw materials to recycling companies, thereby raising money to fund vaccines forchildren in developing countries. The sale of 800 caps brings in roughly 20 yen, which pays for a polio vaccine forone 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 inthe employee cafeteria. The project involves adding 20 yen̶the cost of a school lunch for one child in a developing
country̶to the cost of the cafeteria food to make a food-support donation. Moreover, the foods that can provide thisdonation 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

101

Continually Enhance our Workplaces

Fundamental Policy on Human Resources
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. Each Group 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 andshares information about and conﬁrms the progress with each companyʼs measures to improve job satisfaction. EachGroup company is working to create a workplace full of vitality, based on the Groupʼs fundamental policies.

Corporate Philosophy: Start by Focusing on Employees(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 arelationship 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 wellas values. Second, we promote it by changing simple tolerance of new ideas and values that diﬀer fromconventional 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.

102

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 FY2022. By facilitating workplace improvements that suit the special characteristics ofeach of its businesses, the Nichirei Group aims to incorporate and draw 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 theirworkplace and working hours, to suit personal circumstances.
Systems to maintain these conditions are to be put in place.

Set up systems toprevent disruptionof employee
careers

Systems are to be established to prevent employeesʼ careers frombeing disrupted or ended because of such circumstances aschildbirth, childcare, nursing care, poor health, relocation of a
spouse, or disease.

Prevent excessive working hours

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

EnableDiverseWorking
StylesEnsureEqual
Opportunity

Promote theadvancement offemale employees

Female employees shall be given the same opportunities as theirmale peers, and oﬀered necessary training in recognition of theirvalue to the Nichirei Group.

Providestimulating
employment
opportunities forpeople withdisabilities

Job positions and employment opportunities for people withdisabilities shall be created to allow them to earn a living throughstimulating work, with a vision to ultimately eliminate thedistinction between people with or without disabilities in society.

Createemployment
opportunities forolder people

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

Rewarding work improving base policy
Fundamental Policies

103

■Workstyle Reforms: Main Measures and Activity Progress
PolicyEnableDiverseStyle

Prevent
excessive
working
hours

Ideal State

Priority
MeasureMain Activity
FY2018FY2019FY2020■ New in-housechildcare facility
Opened in the Tokyo
head oﬃce building in
April 2018

■ Full-scale introductionof telework
All worksites except
food factories andlogistics oﬃces

Employees
shall have acertain degreeof freedom tochoose theirworkplace andworking
hours, to suitpersonal
circumstances.
Systems tomaintain these
conditions areto be put inplace.

Provideworking
condition
options

Systems are
to beestablished toprevent
employeesʼ
careers frombeing
disrupted or
ended
because ofsuchcircumstances
as childbirth,childcare,nursing care,poor health,relocation of a
spouse, ordisease.

Set upsystems toprevent
disruption of
employee
careers■ Implementation ofcareer development
programs for female
employees
Career training for 3
terms (3rd–5th terms)
Target: 32 people■ Implementation ofcareer development
programs for women
Women's success
event “Next Step for2021” Target: 163
people■ Nursing care seminar
Held four times, 115participants■ Introduction of
comeback system
Purpose: Ongoingcareer support for life
events and growth■ Leave system due tospouse transfer
Purpose: Examinationand introduction ofmulti-careerformation incollaboration withother companies■ Nursing care seminars
and nursing carehandbook creation
Conducted four times,
103 participantsThroughcollaborativelabor andmanagement
initiatives forworkplace
improvement,
working hours
shall belimited tolevels thatallow each
employee todemonstrate
their ability
and perform
satisfying
work in good
health.

Promotion of
paid leave■ New working hours
management system
introduction test
■ Implementation of
overwork
countermeasuresthrough labormanagement
collaboration■ 100% introduction of
new working hours
management
system%■ Guidance on long
working hours
through introductionof a working time
management system■ Implementation of
measures against
overwork throughlabor-management
collaboration■ Nichirei Groupworking hours
guidelines formulated
through labormanagement■ Introduced new
expense settlement
system■ Five-day introductionof planned annual
leave system■ Implemented elearning: Revisedlabor laws, working
hours awarenessTarget: 5,101
employees
participated■ Implementation of
measures against
overwork throughlabor-management
collaboration

104

Policy

Ideal State

Main Activity
FY2018FY2019FY2020

Promote theadvancementof female
employees■ Logistics Group: 3rdand 4th “Sakaseru
Roji-Jo Forum”
Target: 132 female
employees (275participants in total)■ Nichirei Foods:
LADY,GO UP!
Target: Female
employees at the ﬁvefood manufacturers(eight female Nichirei
Foods employees)
Summary: Seminarfor building external
networks and careerdevelopment■ Logistics Group: 5th
and 6th “Sakaseru
Roji-Jo Forum”
Target: 129 female
employees (404
participants in total)
Theme: Work values
and workplace forwomen■ Nichirei Foods:
LADY,GO UP!
Target: Female
employees at the six
food manufacturers(eight female Nichirei
Foods employees)
Summary: Seminarfor building external
networks and careerdevelopment■ Logistics Group: 7th
and 8th “Sakaseru
Roji-Jo Forum”
Target: 118 female
employees (522participants in total)■ Nichirei Foods:
LADY,GO UP! Target:
Female employees atthe six food
manufacturers (eightfemale Nichirei Foods
employees)
Summary: Seminarfor building external
networks and careerdevelopment

Diversity andinclusion■ Nichirei Foods:
Diversity Forum“SPIRAL UP”
Target: Deepen
understanding ofvarious work styles
centered on thedepartment andsection managers at
each of the ﬁve food
manufacturers. 31
Nichirei Foods
employees (21 men,
10 women)■ Nichirei Foods:
Diversity Forum“SPIRAL UP”
Deepenunderstanding ofvarious work styles
centered on the
Department andSection managers at
each of the six food
manufacturers. 35
Nichirei Foods
employees (26 men,nine women)■ Nichirei Foods:
Diversity Forum“SPIRAL UP”
Deepenunderstanding ofvarious work styles
centered on the
Department andSection managers at
each of the six food
manufacturers. 60
Nichirei Foods
employees (46 men,
14 women)

Job positions
andemployment
opportunities
for people
withdisabilities
shall becreated toallow them toearn a living
throughstimulating
work, with avision toultimately.

Providestimulating
employment
opportunities
for people
withdisabilities■ Disabled employment
rate: 2.5% (32 people
with disabilities
employed)■ Disabled employment
rate: 2.56% (30people withdisabilities employed)■ Disabled employment
rate: 2.75% (34people with disabilities
employed)

As the healthy
life span ofpeoplebecomeslonger, we will
create spaces
enabling
seniors toleverage their
distinctive
experienceand play anactive rolereﬂecting theirindividual
values andworkstyles.

Createemployment
opportunities
for olderpeople■ 44 employees rehired
after retirement (48retirees)■ 59 employees rehired
after retirement (64retirees)■ 57 employees rehired
after retirement (65retirees)

In providing
employeeswith equal
opportunities
and education,
we support
theirdevelopment
into a valuable
force for thethe Nichirei
Group.

EnsureEqual
Opportunity

Priority
Measure105

Continually Enhance our 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 ofthese changes, it is necessary to create a safe and comfortable workplace environment that maintains employeesʼ
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 workplaceis one part of the Nichirei Pledge. Based on this philosophy, the Group is working alongside employees to create an
active workplace environment that is safe and facilitates open communication.

Nichirei Group Health Declaration

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
employeesʼ health. At branch sites, the main issues are work time management related to extended work hours, noovertime 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 foreach 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 Groupaims to improve employeesʼ ability to attain their 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. Risks related to health andsafety are discussed and promoted through the Group Health Promotion Liaison Committee, and the situation ismonitored by the Group Human Resources Committee composed of directors. Regarding the planning and executionof measures, the Group is implementing a variety of solutions, such as having each companyʼs 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 (FY2016), 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 FY2017, theGroup established the Nichirei Group Health Declaration and Group Health Management Standards. Along withspreading 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 ateach Group operating company to make progress with health management.
106

As a risk assessment for health and safety and health, we place emphasis on analysis of health check results. The
contents of the analysis are described in the “Health White Paper” and published internally to provide education andinitiatives related to health in line with employee health conditions, as well as to make the menu provided at theemployee cafeteria healthier It is also utilized as.The goal of 100% health check-up rate, which we have been aiming
for, was 99.3% in FY2017 and 99.8% in FY2018, achieving 100% in FY2019. (Coverage: Nichirei Health Insurance
Association insured)● Occupational Safety and Health Committee Organization Chart■ Number of Work-related Incidents at Food Factories
FY2015FY2016FY2017FY2018FY2019FY2020Incidents Requiring Time Oﬀ

18

21

17

34

34

29

Incidents Not Requiring Time Oﬀ

25

23

18

12

11

16

* 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

Initiatives
The Group aims to enhance its workplace and create a workplace that focuses on employees and oﬀers a high levelof satisfaction. Please see below for details on eﬀorts.

107

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 businessestablishment overall in the country. Occupational safety 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

We have also acquired OHSAS18001※, an international standard for occupational safety and health, at one subsidiaryin overseas. Acquisition base in FY2019: GFPT Nichirei (Thailand) Co., Ltd. The ratio of certiﬁed establishments is
0.6%.
※ OHSAS18001 (Occupational Health and Safety Assessment Series)

Nichirei Logistics Group is making eﬀorts to improve the safety and awareness of operating vehicles throughworkshops and skill competitions. In addition, training related to occupational safety and health has been conductedin new employee training and quality keyman training. In FY2019, 55 employees attended. We also conduct quality
safety center training from time to time to improve employee awareness.

Fork lift truck competition (hosted by Nichirei Logistics Group) (Only available in Japanese)

Driver safety training (Logistics Network)

Promoting Employee Health
Based on our recognition that employee health is an important management issue for a company aiming forsustainable growth, in ﬁscal 2016 Nichirei established the Health Promotion Group as a dedicated healthmanagement section within the Human Resources Strategy & General Aﬀairs.
In ﬁscal 2017, we formulated the Nichirei Group Health Declaration and Group Health Management Standards. In
addition to disseminating the declaration both inside and outside the Company, we have appointed a holding
company health promotion manager, as well as health promotion managers and representatives at each operatingcompany. They promote health management within the Group.
Regular medical checkups, including X-ray screening for the early detection of TB, screening for cancer and thoroughfollow-up measures are led by occupational health staﬀ.
We also implement health awareness activities and conduct stress checks as part of our health checkups. In addition,
we engage in a variety of health promotion measures, including the Nichirei Health School, an employee healthsupport program that incorporates the use of Nichirei Foodsʼ Kikubari Gozen frozen health management meals.
For our small oﬃces and overseas employees, we conduct remote interviews using ICT and smoking cessation
support programs.
Because Nichirei Group is appreciated with these activity, it certiﬁed by Ministry of Economy, Trade and Industry for"The Certiﬁed Health and Productivity Management Organization Recognition Program under the large enterprise
category 2019" (for the third consecutive year).
108

Nichirei Group Health Declaration

Cherishing the hope of“Creating Savory Moments,”
as we state in our corporate
branding statement,
we are working to improve thehealth of all our employees.
Basic policy
1. We will promote the creation of a vibrant workplace through labor–management collaboration, based on
the idea that mental and physical health are the basis of meaningful work.
2. We will strive to create an environment in which each employee enhances their health awareness andproactively promotes health.
3. We will promote health management based on three pillars: health maintenance, mental health measuresand health and safety management.

The Certiﬁed Health and Productivity Management Organization Recognition Program under the large enterprise category 2019
for the third consecutive year

Acquired top spot in DBJ Employeesʼ Health Management Rated Loan Program109

Safety Activities
Nichirei Foods designated “Three Pillars of Safety Activities” as essential measures for safety activities in foodfactories: safety patrols, near-miss activities, 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 from those 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 theproposed 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, that they were always kept in mind, and that deviations from the rules were thoroughly
prevented.

Nichirei Service Safety and Quality Training Center
Placing importance on quality, the environment and safety, the Nichirei Logistics Group has opened safety and quality
training centers across Japan. These facilities enable logistics staﬀ to acquire knowledge regarding safety and quality,
as well as to develop skills and an appropriate mindset.
The core training content includes “reconﬁrmation of basic knowledge through classroom learning,” information about“dangerous experiences” and the “reconﬁrmation of basic forklift operations.” Videos and illustrations are used toenable students to develop an intuitive understanding of the topics.
All training programs and teaching materials are original and veteran employees with a wealth of knowledge andexperience give lectures while providing hands-on experience as part of a systematic curriculum.
At logistics centers, heavy loads are carried using forklifts to enable cargo to be sorted in upper ﬂoors. We thus strive
to improve occupational safety and quality by incorporating into the curriculum practical training to ensure that
equipment is correctly used to prevent items from falling.

Nichirei Logistics Group conducts safety training in a new employee training program, and in FY2020, 23 employees
participated in the training. We also provide training on occupational safety and health through training for key
personnel of quality improvement, and in FY2020, 28 employees participated in the training.

Specialized course for developing the skill of conﬁrming safety
while driving a forklift using the “point and call out” method
Conﬁrming the usefulness of “falling prevention
equipment” while suspended in midair
110Occupational Safety and Health Initiatives for Foreign Technical Interns
The Nichirei Group provides occupational safety- and health-related training for technical interns from abroad. We
are doing this to prevent occupational accidents and facilitate health management for those unfamiliar with life inJapan, while at the same time helping the trainees improve their Japanese-language skills. Our goal is to create
workplaces where all Nichirei Group employees can work safely and healthily with purpose.
Examples of Initiatives Conducted at Worksites
Posters displaying warnings and procedural instructions in various languages
Japanese language classes

A poster for Japanese speech contest

A poster for Vietnamese employees

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.

111

Continually Enhance our 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 workplace environment where all employees can be proud of theirworkplace 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 employeesʼ ambition andabilities plays an important role in employees 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 employeesʼ will to work, and helping them improve their abilities contributes tostrengthening its competitiveness as a company. This philosophy is established in the Groupʼs 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

Code of Conduct112

Workplace Improvement Policy

EnableDiverseWorking
StylesProvide working
condition options

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

Set up systems toprevent
disruption of
employee careers

Systems are to be established to prevent employeesʼ careers frombeing disrupted or ended because of such circumstances as childbirth,childcare, nursing care, poor health, relocation of a spouse, ordisease.

Prevent excessive working hours

EnsureEqual
Opportunity

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 ingood health.

Promote theadvancement offemale employees

Female employees shall be given the same opportunities as theirmale peers and oﬀered necessary training in recognition of their value
to the Nichirei Group.

Providestimulating
employment
opportunities forpeople withdisabilities

Job positions and employment opportunities for people withdisabilities shall be created to allow them to earn a living throughstimulating work, with a vision to ultimately eliminate the distinction
between people with or without disabilities in society.

Createemployment
opportunities forolder people

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

The Human Assets Committee, which promotes the increased job satisfaction-related part of
the Nichirei Pledge, meets twice each year.
The Diversity Promotion Conference, under the Group Human Assets Committee, meets with
Human Assets

labor and management twice a year to monitor measures undertaken at each Group company

Committee

in relation to human rights, job satisfaction, the workstyle of each employee, support for active
participation in the workforce by women, the employment of foreigners, workstyles that diﬀer
according to life stage and age, as well as the employment of and collaboration with, thedisabled.
The president of each Nichirei Group operating company is responsible for building systems that

Human Assets
Development

develop optimal human assets for the Company.
These measures are reviewed annually, as required by the education and training policies ofeach operating company, while related plans and their results are monitored by the Group
Human Assets Committee, which meets twice each year.

113

Level-Based Training
・New employee training, ﬁrst career training (1-3 years after joining the Company)
・Management training
・New oﬃcer seminars
Objective-Based Training
・Facilitation training
・Nursing care seminars
・Career development programs for female employees

The Nichirei Group Workplace Improvement Policy

Management System
Each Group company promotes eﬀorts adapted for its individual businesses, however, the Group has also establishedthe Group-wide Group Human Assets Committee and Diversity Promotion Conference and shares information about
and conﬁrms the progress with each companyʼs 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 FY2014 and FY2020, there have been 21 cases involving consultation about human aﬀairs or mattersrelated to work conditions. With this in mind, the Group is striving for coordination between management and laborthrough cooperation with the labor union.

Correction for long working hours and basic concept of working
hours
Nichirei Group has established the “Nichirei Group Work Style Reform Policy”. One of the pillars is “Correction for long
working hours”, and we aim to achieve appropriate working hours in which each employee is healthy, motivated, andcan fully demonstrate their abilities through labor-management collaboration. As a speciﬁc measure, the Group
conducts monitoring by holding a Group Labor-Management Council every other month from the viewpoint of legal
compliance (observance of Article 36 and acquisition of more than 5 days oﬀ annually, etc.).
In addition, the Group has formulated the “Nichirei Group Working Hours Guidelines” and conducted e-learning forthe purpose of disseminating the contents, thereby encouraging employees to correctly recognize working hours. In
some cases of excessive working hours, we are working to reduce working hours and improve the annual leave rate.

114

Work for Seniors
In 2002, the Nichirei Group set up the Senior Staﬀ System to provide employment
opportunities for employees on retirement. After reaching the retirement age of60, those wishing to continue working may do so until the age of 65. At present,
we employ more than 100 senior members of staﬀ, whose experience andknowledge contribute to Group development.
Lecture on frozen foods during
a virtual factory tour

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

Promotion of Diversity

Labor union activities; labor-management cooperation

Number of employees (by job type, rank, gender)115

■ Group Total Number Hired (new graduates, experienced workers)
FY2015FY2016FY2017FY2018FY2019FY2020

106

83

92

101

88

104

Male

61

58

57

54

46

49

Female

45

25

35

47

42

55

50

45

68

45

80

113

Male

36

36

42

36

60

52

Female

14

9

26

9

20

61

FY2015FY2016FY2017FY2018FY2019FY2020

Number of company employees

3,635

3,628

3,755

3,780

3,782

3,841

Number of non-company employees

2,408

2,241

2,270

2,228

2,158

2,040

Percentage of non-company employees
(%)

39.8

38.2

37.7

37.1

36.3

34.7

Number of new
graduates hired

Number ofexperienced
workers hired

Breakdown

Breakdown■Percentage of Non-company Employees

116

Continually Enhance our Workplaces

Human Rights
Basic Philosophy
The Nichirei Group is aware that, when it comes to operating a global business, respecting the human rights not onlyof the Groupʼs employees, but also all stakeholders involved in its businesses is absolutely essential, and that thisphilosophy applies to all people and companies.
Based on this way of thinking, the Group has referenced both the “ILO Declaration on Fundamental Principles andRights at Work”*1 and the “UN Guiding Principles on Business and Human Rights”*2, among other international
human rights standards, and sets forth the Groupʼs Code of Conduct as follows. The Nichirei Group respects humanrights 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 FY2020, the Nichirei Group Human Rights Policy was established. In FY2018, the Group established “The Nichirei
Group Workplace Improvement Policy” based on the Nichirei Pledge and aims to achieve its goals by FY2022. In
addition to each Group company promoting eﬀorts that address their individual issues, Nichirei also facilitate
exchanges of information and conﬁrms each otherʼs 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 andemployment, implement eﬀective abolition of child labor, forbid forced labor, and eﬀectively approve freedom of associationand 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 to strengthen the standards and customs related to multinationalﬁrmsʼ businesses and human rights.

Code of Conduct

the Nichirei Group Human Rights Policy

Workplace Improvement Policy

Nichirei Group Sustainable Supply Chain Policy

117

Labor-management Relation Philosophy
The Nichirei labor union aims for activities that respect each union member for the healthy development of theGroup, based on the principle of ﬁrmly maintaining an equal relationship between labor and management andcreating an environment that allows for activities based on mutual ambition. The unionʼs activities place importanceon labor-management negotiations, narrowing down the demands of its members in the workplace and pushing for
improvements, while maintaining a productive relationship with management.

Labor union activities; labor-management cooperation

Management System
In addition, to respond to reports and consultations from employees regarding violations of employeesʼ humanrights, Nichirei introduced an internal reporting and consultation system (Nichirei Hotline) in October 2003. Including
human rights matter, consultations can be made anonymously. Over the past three years, an increasing number ofreported cases have involved workplace disputes and harassment. To establish a whistleblower hotline independentof management, as stipulated in the Corporate Governance Code, after the revision of the internal reporting system
in FY2016, Nichirei created and distributed “Nichirei Hotline” mobile cards to employees and posted awarenessposters around the workplace to make sure to inform employees about the system. The Group also shares monthly
collections of examples regarding the code of conduct with employees via an in-house bulletin board to raiseawareness about maternity harassment and other legal violations. Consultations from outside are accepted at thecounters such as representative telephones, toll-free numbers, and inquiry websites.

Initiatives
In FY2020, there were no human rights incidents.
From FY2017 to FY2020, we conducted in total 40 compliance awareness training sessions, and 971 people oftargeting group leaders of each department attended.
The seminars were designed to reaﬃrm the signiﬁcance of, and need for, compliance, as well as to review theGroupʼs compliance-related policies. During training, participants examined their role as group leaders in ensuring
and promoting compliance, including the prevention of harassment. 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 5,008 employees.
In FY2020, there were 12 cases of internal reports or consultations related to human rights complaints andallegations. In accordance with company policy, all reports received are relayed to top management by theadministration oﬃce, which also conducts an investigation to conﬁrm the facts, implements corrective measures, andprovides feedback to the person who made the report (when not reported anonymously). Anonymity is preserved toprotect 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.

Compliance118

Continually Enhance our 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 ofequal opportunity” is established as one of its policies.

The Nichirei Pledge

The Nichirei Group Workplace Improvement Policy

Management System
Each Group company promotes eﬀorts adapted for its individual businesses; however, Nichirei has also establishedthe Group-wide Group Human Assets Committee and Diversity Promotion Conference. These councils share
information about and conﬁrm the progress with each companyʼs 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 employeesʼ human rights, job satisfaction, and diverse work styles. The measures
include promoting the equal participation of men and women as a company that supports womenʼs success in theworkplace, employment of foreigners and other groups that demonstrates a global mindset, allowance for a diverse
array of work styles suited to diﬀerent life stages and ages, and employment of and cooperation with people withdisabilities. 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 FY2018, the Group established The Nichirei Group Workplace Improvement Policy, and is striving toenable diverse working styles, prevent excessive working hours, and ensure equal opportunities by FY2022.

119■Workstyle Reforms: Main Measures and Activity Progress
PolicyEnableDiverseStyle

Prevent
excessive
working
hours

Ideal State

Priority
MeasureMain Activity
FY2018FY2019FY2020■ New in-housechildcare facility
Opened in the Tokyo
head oﬃce building in
April 2018

■ Full-scale introductionof telework
All worksites except
food factories andlogistics oﬃces

Employees
shall have acertain degreeof freedom tochoose theirworkplace andworking
hours, to suitpersonal
circumstances.
Systems tomaintain these
conditions areto be put inplace.

Provideworking
condition
options

Systems are
to beestablished toprevent
employeesʼ
careers frombeing
disrupted or
ended
because ofsuchcircumstances
as childbirth,childcare,nursing care,poor health,relocation of a
spouse, ordisease.

Set upsystems toprevent
disruption of
employee
careers■ Implementation ofcareer development
programs for female
employees
Career training for 3
terms (3rd–5th terms)
Target: 32 people■ Implementation ofcareer development
programs for women
Women's success
event “Next Step for2021” Target: 163
people■ Nursing care seminar
Held four times, 115participants■ Introduction of
comeback system
Purpose: Ongoingcareer support for life
events and growth■ Leave system due tospouse transfer
Purpose: Examinationand introduction ofmulti-careerformation incollaboration withother companies■ Nursing care seminars
and nursing carehandbook creation
Conducted four times,
103 participantsThroughcollaborativelabor andmanagement
initiatives forworkplace
improvement,
working hours
shall belimited tolevels thatallow each
employee todemonstrate
their ability
and perform
satisfying
work in good
health.

Promotion of
paid leave■ New working hours
management system
introduction test
■ Implementation of
overwork
countermeasuresthrough labormanagement
collaboration■ 100% introduction of
new working hours
management
system%■ Guidance on long
working hours
through introductionof a working time
management system■ Implementation of
measures against
overwork throughlabor-management
collaboration■ Nichirei Groupworking hours
guidelines formulated
through labormanagement■ Introduced new
expense settlement
system■ Five-day introductionof planned annual
leave system■ Implemented elearning: Revisedlabor laws, working
hours awarenessTarget: 5,101
employees
participated■ Implementation of
measures against
overwork throughlabor-management
collaboration

120

Policy

Ideal State

Main Activity
FY2018FY2019FY2020

Promote theadvancementof female
employees■ Logistics Group: 3rdand 4th “Sakaseru
Roji-Jo Forum”
Target: 132 female
employees (275participants in total)■ Nichirei Foods:
LADY,GO UP!
Target: Female
employees at the ﬁvefood manufacturers(eight female Nichirei
Foods employees)
Summary: Seminarfor building external
networks and careerdevelopment■ Logistics Group: 5th
and 6th “Sakaseru
Roji-Jo Forum”
Target: 129 female
employees (404
participants in total)
Theme: Work values
and workplace forwomen■ Nichirei Foods:
LADY,GO UP!
Target: Female
employees at the six
food manufacturers(eight female Nichirei
Foods employees)
Summary: Seminarfor building external
networks and careerdevelopment■ Logistics Group: 7th
and 8th “Sakaseru
Roji-Jo Forum”
Target: 118 female
employees (522participants in total)■ Nichirei Foods:
LADY,GO UP! Target:
Female employees atthe six food
manufacturers (eightfemale Nichirei Foods
employees)
Summary: Seminarfor building external
networks and careerdevelopment

Diversity andinclusion■ Nichirei Foods:
Diversity Forum“SPIRAL UP”
Target: Deepen
understanding ofvarious work styles
centered on thedepartment andsection managers at
each of the ﬁve food
manufacturers. 31
Nichirei Foods
employees (21 men,
10 women)■ Nichirei Foods:
Diversity Forum“SPIRAL UP”
Deepenunderstanding ofvarious work styles
centered on the
Department andSection managers at
each of the six food
manufacturers. 35
Nichirei Foods
employees (26 men,nine women)■ Nichirei Foods:
Diversity Forum“SPIRAL UP”
Deepenunderstanding ofvarious work styles
centered on the
Department andSection managers at
each of the six food
manufacturers. 60
Nichirei Foods
employees (46 men,
14 women)

Job positions
andemployment
opportunities
for people
withdisabilities
shall becreated toallow them toearn a living
throughstimulating
work, with avision toultimately.

Providestimulating
employment
opportunities
for people
withdisabilities■ Disabled employment
rate: 2.5% (32 people
with disabilities
employed)■ Disabled employment
rate: 2.56% (30people withdisabilities employed)■ Disabled employment
rate: 2.75% (34people with disabilities
employed)

As the healthy
life span ofpeoplebecomeslonger, we will
create spaces
enabling
seniors toleverage their
distinctive
experienceand play anactive rolereﬂecting theirindividual
values andworkstyles.

Createemployment
opportunities
for olderpeople■ 44 employees rehired
after retirement (48retirees)■ 59 employees rehired
after retirement (64retirees)■ 57 employees rehired
after retirement (65retirees)

In providing
employeeswith equal
opportunities
and education,
we support
theirdevelopment
into a valuable
force for thethe Nichirei
Group.

EnsureEqual
Opportunity

Priority
Measure121

Workstyle Diversity
In-House Childcare Facility
In April 2018, Nichirei opened an in-house daycare center at its Head Oﬃce,
located in the Tsukiji district of Tokyoʼs Chuo Ward. This is one of the Groupʼsworkstyle reforms, designed to enable the early return to work by those
employees raising children and to support a work–life balance.
In an eﬀort to assist members of the community, by helping alleviate theproblem of long waiting lists at childcare facilities, we are also accepting a ﬁxed
number of local children at the daycare center.

Daycare children visit the workplace

Operational Innovations
The Use of Robots
The Nichirei Logistics Group is promoting the introduction of robotic process
automation (RPA) to innovate oﬃce operations. RPA allows automation acrossapplications through the use of computers even by those without
programming knowledge; worksite employees have created and used original
RPA scenarios on their own.
In FY2019, when full-scale deployment of the process began and the goal
was to convert 10,000 hours of human labor to RPA each year, we actuallyconverted 20,000 hours. In addition to resolving the problem of long working
hours, the time freed up by automated operations allows for a shift in

Worksite employees engaged in RPA
operation trainingemphasis from oﬃce operations to resources; strengthens communications
with worksites; and allows suﬃcient time for staﬀ to meet with visitors, including business partners. In addition, theextra time available has made possible the creation of new added value operations and increased job satisfaction
among all employees.
In FY2020, we aim to convert 180,000 hours of human labor into RPA and cultivate 100 more employees able tocreate RPA scenarios.

122Hiring People with Disabilities
The Group encourages the employment of people with disabilities, 34 of whom work at our special subsidiary,
Nichirei Aura.
They are engaged in a wide range of operations, including the cleaning of the head oﬃce and food factories locatedat Group companies, as well as oﬃce interiors within our logistics centers and the maintenance of green spaces. The
Group will continue to create comfortable working environments for individuals with disabilities.

■ Ratio of Employees with Disabilities
FY20202.75%

FY20192.56%

FY20182.50%

FY2017

2.62%

FY2016

2.64%

FY20152.36%

Oﬀering Employees Workplace Transfer Options
Nichirei Foods Inc. revised its personnel system during FY2016 and FY2017, 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 regardless of 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.

123Promote the Advancement of Female Employees
As part of its eﬀort to promote the participation of women in the workplace, the Logistics Group held theeighth Sakaseru Roji-Jo Forum in January 2020. About seventy female employees from each region across thecountry gathered to learn about the background, current status and future prospects of eﬀorts promoting womenʼsactive participation in the workplace. For the ﬁrst time, senior employees, including men, attended in 2019.
The forum acknowledged peopleʼs values with regard to work, as well as the need to create networks among
employees in each region through discussions regarding participant work values and the creation of workplaces
where women can work in ways that best suite them.
In ﬁscal 2020, Nichirei Foods held seminars for female employees in collaboration with other food manufacturers.
These seminars included SPIRAL UP!, a diversity forum aimed at building awareness and LADY, GO UP!, a seminar
aimed at building external networks and career development.

Sakaseru Roji-Jo Forum

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 FY2019, 43 employees of the entire group took childcare leave, 36 had returned to work and 7 were ongoing.(Asof the end of September 2020)

Human Asset Data

124

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 play a role in deciding promotions or salary increases.

Education and Training■Main education and training
General employees

Managers

OﬃcersTraining by
rank*New employees training*1st to 3rd year employees
follow-up training*Mid-career employees training*New managers training*Next-generation executives
training course*Management training

Training bypurpose*Facilitation training*Career seminar for female employees*Female leaders development program*Coaching training*Foreign Languages training*Evaluators training*Critical Thinking*Marketing*Accounting*New oﬃcers seminar*Media training*Directors and executiveoﬃcers training*Management training*Coaching training■Education time and number of participants
Training by rank andpurpose

Education time (cumulative
total)

Number of participants (cumulative
total)FY201845,6491,379

FY201949,7301,699

FY202047,190

1,596

Total

142,569

4,674

Human Asset Development
Each ﬁscal year, the Nichirei Group provides employees with a one-year educational program. It is devised by the
Human Resources Committee in accordance with Group Education and Training Rules to support the careeradvancement of each employee.
In addition, to improve employeesʼ skills, we conduct e-learning courses focused on quality, safety, governance, andcompliance for all employees in Japan using the Nichirei intranet.

125

■Level-based training plan
Training plan

Objective

Executive Coaching

To stimulate better management decisions, improve organizational
growth, and business performance. Changes in the thinking ofexecutives is expected to have a ripple eﬀect on employees,
resulting in improved productivity.

ExecutiveoﬃcersNext-generation
Management Team
Development
Program

To foster management capabilities, world-standard leadership, anddecision-making criteria by cultivating ideas based on broad
perspectives.

Generalmanagers,
department
managers

Leader Training

Creating true managers: Fostering human assets able to play apart in creating a strong and autonomous organization which
discovers problems that need to be solved and creates its own
solutions to become an organization that is relied on by businesses.

Managerial staﬀ

Evaluator Training

To teach the principles of evaluation and deepen understanding of
the purpose and signiﬁcance of goal management and evaluation
systems.

New attendees(such as recent
graduates,
career hires,transferred
employees)

Facilitation Training

To understand such concepts as meeting preparation, meeting
management, and follow-up, in order to conduct eﬃcientmeetings.

All employees

Training for Newly
Appointed Managers

To elucidate the role of managers expected to lead theorganization, and the viewpoints, perspectives and key behaviors
required.

Newly appointed
managers

To inculcate basic behaviors essential for human assets to produce
results expected by the Company and supervisors.

New hires,
employees intheir second andthird years of
employment

First Career Training

New Employee
Training

To reorient the mindset from that of a student to that of an
employee (teaches proactive behavior, disciplined behavior, andexpected business etiquette)
To promote understanding of the Nichirei Group and a sense of
belonging

126

TargetNew hires,
employees intheir second andthird years of
employment

Support Good Corporate GovernanceCorporate GovernanceManagement System● Corporate Governance Structure

Corporate Governance, Integrated Report 2020

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 inresponse to changes in business conditions. Resolutions to appoint directors must be approved by a majority ofshareholders, with at least one third of those shareholders who have voting rights in attendance. To improvetransparency 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 Groupʼs overall execution of business.

127

Audit & Supervisory Board Member System and Role of Audit & Supervisory Board meetings
Nichirei has adopted the audit & supervisory board member system. Of the ﬁve audit & supervisory board members,
three are outside audit & supervisory board members, of whom one has experience at a ﬁnancial institution, anotheris an experienced attorney, and the third has worked at a government agency. Audit & Supervisory Board meets oncea month, in principle, convening additional meetings as necessary. Nichirei has established a framework to enhance
the supervisory functions of audit & supervisory board members, allowing for the eﬀective use of audit & supervisoryboard members, and strengthening the supervisory role of management.
Independent Outside Directors and Outside Audit & Supervisory Board Members
The Company adheres to its Criteria for Independence when appointing outside directors and outside audit &supervisory board members designated by the Company as independent directors/audit & supervisory board
members. A vested interest in Nichirei is denied outside directors and their close relatives, as well as outside audit &supervisory board members and any companies or organizations of which they are directors or that they serve inother important positions.

Reasons for nomination of outside directors: Notice of the 102nd Annual General Shareholders
Meeting, pages 9–11

128

■ Attendance of Outside Directors and Outside Audit & Supervisory Board Members at Meetingsof the Board of Directors or Audit & Supervisory Board (as of June 24, 2020)

Category

Attendance at
Meetings of theBoard of Directors
or Audit &Supervisory Board

Main Activities

Attended 18 of 18
meetings of theBoard of Directors

Mr. Shizuka Uzawa has extensive experience as acorporate executive coupled with a wide-ranging
knowledge of ﬁnance and accounting and, in theinterest of Group management, provides opinions andadvice during meetings of the Board of Directors andvarious other internal meetings.

Attended 16 of 18
meetings of theBoard of Directors

Ms. Mieko Wanibuchi has worked in corporate
management for many years and leverages theexperience and knowledge acquired through theseendeavors to oﬀer opinions and advice during meetingsof the Board of Directors and various other internal
meetings.

Kuniko Shoji

Attended 17 of 18
meetings of theBoard of Directors*

Ms. Kuniko Shoji has extensive experience as acorporate manager in the pharmaceutical-relatedindustry and broad knowledge of quality assurance andR&D. She also oﬀers opinions and advice during
meetings of the Board of Directors and various otherinternal meetings.

Masaaki Okajima

Attended 18 of 18
meetings of theBoard of Directors
Attended 16 of 16
meetings of Audit &Supervisory Board

Mr. Masaaki Okajima has abundant experience andextensive insights into administrative aﬀairs. In
addition, mainly at the Board of Directors and the Board
of Auditors, he provides opinions and advice, etc.

Kazuo Nagano

Attended 18 of 18
meetings of theBoard of Directors
Attended 16 of 16
meetings of Audit &Supervisory Board

Mr. Kazuo Nagano owns advanced experience andknowledge as a corporate manager including themanagement of ﬁnancial institution.

Yuhiko Saito

Attended 14 of 14
meetings of theBoard of Directors
Attended 11 of 11
meetings of Audit &Supervisory Board

Mr. Yuhiko Saito has had a career in the legal
profession, while also holding judicial positions ingovernment oﬃce. Having worked as an attorney sinceretiring from public oﬃce, he possesses wealth ofexperience and intricate knowledge as a legal expert.

Name

Shizuka Uzawa

OutsideDirectors

OutsideAudit &
Supervisory
Board
Members

Mieko Wanibuchi* This member assumed his or her position after being appointed at the 101st Ordinary General Meeting of Shareholders heldon June 25, 2019.

129

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 thepresident, Nichirei has set up the Management, Review, and Intellectual Property Management Committees, an
overview of which follows.

TitlesConditions

Board of Directors

number of times held
FY2018FY2019FY2020Held the third Tuesday of the month

19

19

18

Nominating Advisory
Committee

Convened by the chairperson twice yearly
and as required

1

2

2

Remuneration Advisory
Committee

Convened by the chairperson once yearly
and as required

1

6

3

Management Committee

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

21

23

20

The Group Human Resources
Committee

Convened by the chairperson twice yearly
and as required

2

2

2

The Group Risk Management
Committee

Convened by the chairperson twice yearly
and as required

2

2

2

The Group Environmental
Protection Committee

Convened by the chairperson twice yearly
and as required

3

3

2

The Group Quality AssuranceCommittee

Convened by the chairperson twice yearly
and as required

2

2

2

The Group Internal Control
Committee

Convened by the chairperson once yearly
and as required

1

1

1

The Group Oﬃcer Examination
Committee

Convened by the chairperson as required

Social Action Program
Committee

Convened by the chairperson once yearly
and as required

-

1

1
1

1

Internal Audits, Audits by Audit & Supervisory Board Members, and Accounting Audits
Audit & supervisory board members 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 thestatus 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, thedivision conducts facility audits inspecting the status of production plants, distribution centers, and other facility
audits providing appropriate guidance and advice.

130

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 a remuneration schedule. Bonuses are paid according to theconcept of productivity-linked bonuses, based on the results of the Nichirei Group, the performance-budget
achievement rate of the relevant oﬃcerʼs 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, once a 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 audit & supervisory board member, and outside
directors. Oﬃcer remuneration is determined by the Board of Directors. The total amount of remuneration andbonuses 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 102nd
Annual General Shareholders Meeting, page 33(Japanese only)

Status of Board of Directorsʼ Evaluations

Corporate Governance, Integrated Report 2020131

Support Good 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 accuracy of 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, chairedby the Representative Director and President, to manage the various risks associated with its business activities, inthe most appropriate and rational ways from a comprehensive standpoint, and to maximize the corporate Groupʼsenterprise 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 arereported to the Board of Directors of Nichirei Corporation, the holding company, which considers the response.

Internal Control

Business Risk, page 14, Annual Securities Report (for the year ended March 31, 2020)(Japanese only)

Nichireiʼs Value Creation Model, page 27, Integrated Report 2020

Management System
Recognizing that the actions of each and every employee are important for preventing various risks from occurring,
Nichirei established the Code of Conduct, comprised of 12 articles (revised in 2014) relating to compliance andethical 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 Boardof Directors of Nichirei Corporation, the holding company, and the response is discussed.

Educating Employees about the Code of Conduct to Ensure Compliance132

Business Continuity Plan Initiatives
Employee Safety＜Group Countermeasures Headquarters in Response to COVID-19＞
In January 2020, we set up the Group Countermeasures Headquarters in response to COVID-19. In addition tocollecting and sharing information throughout the Group, between January and July 2020 we sent out, on the
Company intranet, 24 messages with instructions regarding work systems and infection prevention measures.
We are creating a crisis management system to strike a balance between the prevention of infectio and the need forour employees to engage in business activities.

＜Conﬁrming Safety in Emergency Situations＞
The Nichirei Group has introduced a company-wide safety conﬁrmation system using a dedicated website. In theevent of a disaster, such as an earthquake with an intensity of ﬁve or higher, emails will be sent to each employee tocheck whether they are safe, and relevant local information will be provided immediately on the website. The systemallows for the rapid collection and sharing of information.
Enhancing Logistics Core System BCP
As part of its risk management, the Nichirei Logistics Group has been enhancing its BCP support for its logistics coresystem since February 2018.
Assuming the possibility of damage to the data center, where operations are heavily concentrated, we created adisaster recovery (DR) system to enable rapid business continuity. In the event of a large-scale disaster, we would be
able to quickly resume operations through the use of two bases that switch from the system at our main site to the
DR site.
Approximately one hour would be needed from the activation of the system until an online restart would be possible.
This is designed to ensure that customer businesses and food distribution are not aﬀected.
We plan to implement advanced initiatives as a food logistics lifeline in order to contribute to the business continuityof our business partners.

133

Case Study

Nichirei Logistics Group BCP Initiatives

Overview
In recent years, with a number of areas having experienced enormous damage as a result of natural disasters, theNichirei Logistics Group has formulated a BCP to be implemented in the event of earthquakes, tsunamis, typhoons,major storms, and ﬂoods. Such risk management prioritizes ensuring the safety of employees and cargo being
handled.
Every year before the typhoon season, in addition to circulating a document detailin our anticipated response toforecast typhoons and other weather-related disasters on the Company website, we provide business partners withinformation on how to deal with temporary closures and changes in business hours.
In response to COVID-19, we are conducting infection prevention measures at businesses, while at the same timechanging work styles by, for example, staggering commuting times, encouraging teleworking, and opening satellite
oﬃces to help ensure employee safety and business continuity.
Countermeasures Headquarters Establishment Flow134

COVID-19 Response Manual

Facility Disinfection Manual

Guidelines for Preventing the Spread of Infection (Close Contact Prevention)

135

Ensure Strict Compliance

Compliance
Basic Philosophy
The Nichirei Group, in accordance with the Groupʼs Management Principles and Code of Conduct, complies with laws
and regulations, refrains from dishonest or antisocial corporate activities, and is committed to fair corporate activities
beﬁtting a public organ of society.
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 addition of “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 thestandpoint of global compliance, were also incorporated, including the prohibition of insider trading, and involvementin, or dealings with, antisocial forces.
In addition, the Group has established the Nichirei Group Sustainable Supply Chain Policy, which includes matters oncompliance, fair trading, and human rights. The Group procures products and services in accordance with this policy,
and asks suppliers to assent to and cooperate in complying 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 Companyʼs 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 Companyʼs 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

Code of Conduct

136

Corporate Governance Report (Only available in Japanese)

Sustainable Supply Chain Policy

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 asystematic 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 thisline 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 Nichireiʼs articles of incorporation, andact in keeping with corporate ethics, Nichirei has formulated and distributes a Code of Conduct along with a collectionof examples of how the code is to be applied. Moreover, so that the principles and systems of compliancemanagement 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 andnew employees.

Internal Whistleblower Hotline and Consultation Service
Whistleblowing and consultation systems have been introduced allowing employees to report, or seek advice on,actions that all kinds of corruption such as violate laws or internal regulations, or that are ethically questionable. In
FY2016, Nichirei revised its whistleblowing system in response to the requirements of Japanʼs new Corporate
Governance Code, establishing “a point of contact that is independent of management.” To raise awareness for thesystems, 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 andharassment. In accordance with Company policy, all reports received are relayed to top management by theadministration oﬃce, which also conducts an investigation to conﬁrm the facts, implements corrective measures, andprovides feedback to the person who made the report (when not reported anonymously). Anonymity is preserved toprotect 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.
The persons in charge of whistle-blowing attend education and other training related to harassment, etc. byspecialists every year in an eﬀort to improve responsiveness. In addition, all superiors and managers in theworkplace who are in a position to receive consultation from their subordinates attend the compliance awarenessstudy session described below. By conducting regular training every year and increasing the number of students, we
are working to improve our group-wide harassment response capabilities.

137

■Number of Whistleblowing Cases, by Type
Mistreatment

Workplace
Disputes

Harassment

Compliancerelated
Breaches

Other
Consultations

Total

FY2015

0

5

4

0

0

9

FY2016

0

0

7

2

4

13

FY2017

6

2

7

1

4

20

FY2018

6

11

12

3

3

35

FY2019

6

2

1

1

2

12

FY2020

2

5

12

1

1

21

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 thehigh ethical standards of its oﬃcers and employees. To foster a sense of ethics in each and every employee, theCode 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 toall employees, and a monthly series of case studies related to the Code of Conduct is published on the Groupʼsintranet 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 theneed for compliance. A total of 971 people participated in 40 seminars held in FY2017–FY2020. The seminars areheld 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 Groupʼs compliance-related policies. During training, participants examined theirrole 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 inhouse educational rules. The Nichirei Group is committed to continue providing compliance training.

138■ E-learning Training Sessions Conducted in FY2020
E-learning Topic

Eligible
Participants

ActualParticipantsParticipation
Rate

1

Harassment

5,367

5,008

93.3%

2

Quality Assuarance

5,403

5,032

93.1%

3

Health Literacy

5,403

5,047

93.4%

4

Personal Information Protection Act

5,381

5,121

95.2%

5

Working Hours

5,381

5,101

94.8%

6

Insider Trading

5,358

4,904

91.5%

7

Stress Check

5,358

4,948

93.1%

8

Intellectual Property

5,357

5,050

94.3%

9

Competition law; bribery and corruption
prevention

5,357

5,057

94.4%

10

Internal Whistleblowing ＆ Consultation
System

5,471

4,862

88.9%

11

Internal Controls

5,435

5,088

93.6%

12

Environment

5,396

5,035

93.3%

13

Information Security

5,362

4,993

93.1%

Bribery and Corruption
During FY2020, no employees were penalized for bribery or other acts of corruption. Moreover, no payments weremade for ﬁnes relating to bribery or other acts of corruption.

139

Report Archives
Report Archives(Japanese only in 2017 and before)

Integrated Report 2020

PDF (Japanese)
PDF (English)

Integrated Report 2019

PDF (Japanese)
PDF (English)

Integrated Report 2018

PDF (Japanese)
PDF (English)

CSR Report 2019

PDF (Japanese)
PDF (English)
ESG Data

CSR Report 2018
*Refer to the contents of GRI standards (2016)

PDF (Japanese)
PDF (English)
Employee-related Data / Environmental Data

CSR Report 2017

PDF (Communication Version)
Employee-related Data

CSR Report 2016

PDF (Communication Version)
Employee-related Data

CSR Report 2015

PDF
Employee-related Data

CSR Report 2014

Website Version
PDF (Digest Verstion)
Employee-related Data
140

CSR Report 2013

Website Version
PDF (Digest Verstion)
Employee-related Data

CSR Report 2012

Website Version
PDF (Digest Verstion)

CSR Report 2011

Website Version
PDF (Digest Verstion)

CSR Report 2010

Website Version
PDF (Digest Verstion)

CSR Report 2009

Website Version
PDF (Digest Verstion)

Social and Environmental Report 2008

PDF

Social and Environmental Report 2007

PDF

Social and Environmental Report 2006

PDF

Social and Environmental Report 2005

PDF

Environmental Report 2004

PDF

Social and Environmental Report 2003

PDF

Environmental Report 2002

PDF

Environmental Report 2001

PDF

Environmental Report 2000

PDF

141

ESG Navigation
ESG Navigation
Link to eachlocation

Promoting CSR Management in the Nichirei
Group

Presidentʼs Message●

CSR Basic Policy (The Nichirei
Pledge)●CSR Management Structure●

Commitment

Management
Structure

Targets andPerformances

Climate Change●●

Water Use●●Management of Waste
Water, Waste Matterand Chemical
Substances

●

●

●

Biodiversity

●

●

●

Supply Chain(Environment)

●

●

●

Supply Chain (Social)

●

●

●

Human Rights

●

●

●

Stakeholder
Engagement

●

●

●

Safe and Healthy
Product and Service

●

●

●

Occupational Healthand Safety

●

●

●

Workplace
Improvement(including Diversity)

●

●

●

Initiatives●●●

Waste and Eﬃcient
Use of Resources
Environment

Social142

Link to eachlocation

Corporate Governance

Basic Policy on Corporate Governance●

Remuneration Scheme and Process for the
Directors and Executive Oﬃcers●

Basic Approach for nomination of Directors●

Expertise and Background of Directors●

Basic Policy Internal Control System●

Corporate Governance Structure (Compositionof the Board of Directors and the Board ofCompany Auditors)
Committees for Eﬀective Corporate Governance

Governance●Management Supervisory System
Compliance Structure
ComplianceInternal reporting and Consultation Hotline●

Code of Conduct
Risk Management
Matters relating to theGeneral Meetings ofShareholders

Basic Approach fo Risk Management●

Information Security●

Notiﬁcation of the Convocation
Notiﬁcation of the Resolution143●ESG-related Policies
ESG-related Policies■The Nichirei Group ESG-related Policies
Topics

Policies

Corporate Basic Policies

Basic CSR Policy "The Nichirei Pledge"

Environment

Environmental Policy
Biodiversity Policy

SocialFundamental Policies on Quality Assurance
Human Rights Policy
Sustainable Supply Chain Policy
Policy Regarding Social Contribution
Fundamental Policies for Workplace Improvement
Workplace Improvement Policy

Governance

Basic Policy on Corporate GovernanceInternal Control
Code of Conduct

144

ESG Data
ESG Data
Employee-related Data

Environmental Data

Corporate Governance Data

Employee-related Data
Number of employees

Female Managers Ratio

Average age

Average Number ofYears Employed

Number of Employees
Hired (new graduates,
mid-career)

Number of
Resignations/Resignation
Rate/Reasons for
Resignation

Number of Employees
Rehired After
Retirement

Employment Rate ofPeople with Disabilities

Annual Total of Actual
Hours Worked

Annual Paid Vacation:
Average Number ofDays and Acquisition
Rate

Employees Using TimeOﬀ for Childrearing

Employees Using TimeOﬀ for Caregiving

Number of WorkRelated Accidents at
Food Plants

Number of occupational
deathsGeneral regular healthcheckup rate

Stress Check Coverage

New Graduate Hire
Turnover Status

Nichirei Group Main
education and training

Nichirei Group
Education time andnumber of participants■Number of employees
Coverage

Item

Unit

NichireiGroup total

Executives and employees
total

NumberofpeopleFY2016FY2017FY2018FY2019FY2020

5,932

6,087

6,073

6,002

5,943

3,629

3,746

3,792

3,748

3,729

2,303

2,341

2,281

2,254

2,214

Number of executives

63

62

65

62

62

Male

62

60

63

60

60

Female

1

2

2

2

2

3,628

3,755

3,780

3,782

3,841

Male

2,732

2,800

2,786

2,789

2,779

Female

896

955

994

993

1,062

1,270

1,285

1,293

1,309

1,335

Breakdown

Breakdown

Male
FemaleNumber of company
employees
Breakdown【Number of employees inmanagement positions】
145

Breakdown

Male

1,196

1,206

1,205

1,216

1,215

74

79

88

93

120

【Number of generalemployees】

2,358

2,470

2,487

2,473

2,506

Male

1,536

1,594

1,581

1,573

1,564

Female

822

876

906

900

942

2,241

2,270

2,228

2,158

2,040

Male

835

886

943

899

890

Female

1,406

1,384

1,285

1,259

1,150

263

273

277

252

252

Male

159

157

156

148

153

Female

104

116

121

104

99

Number of executives

20

20

21

19

19

Male

19

18

19

17

17

Female

1

2

2

2

2

189

205

213

187

214

Male

127

125

128

122

123

Female

896

955

994

65

91

99

100

111

112

116

Male

81

79

85

85

87

Female

18

21

26

27

29

【Number of generalemployees】

90

105

102

75

98

Male

46

46

43

37

36

Female

44

59

59

38

62

54

48

43

46

19

Male

13

14

9

9

13

Female

41

34

34

37

6

3,014

3,126

3,133

3,054

3,010

Male

1,716

1,799

1,866

1,821

1,816

Female

1,298

1,327

1,267

1,233

1,194

Number of executives

13

13

12

12

11

Male

13

13

12

12

11

Female

0

0

0

0

0

1,472

1,541

1,535

1,524

1,505

Male

1,110

1,155

1,146

1,134

1,114

Female

362

386

389

390

391

525

533

534

532

525

FemaleBreakdown

Number of staﬀ other thanemployees
Breakdown

Executives and employees
total
Breakdown

Breakdown

Number of company
employees
Breakdown
NichireiCorporation【Number of employees inmanagement positions】
Breakdown

Breakdown

Number of staﬀ other thanemployees
Breakdown
Nichirei
Foods

Executives and employees
total
Breakdown

Breakdown

Number of company
employees
Breakdown【Number of employees in146management positions】
Male

488

499

498

497

487

Female

37

34

36

35

38

【Number of generalemployees】

947

1,008

1,001

992

980

Male

622

656

648

637

627

Female

325

352

353

355

353

1,529

1,572

1,586

1,518

1,494

Male

593

631

708

675

691

Female

936

941

878

843

803

313

313

308

315

315

Male

225

228

228

228

225

Female

88

85

80

87

90

Number of executives

8

7

9

9

10

Male

8

7

9

9

10

Female

0

0

0

0

0

248

254

252

256

267

Male

200

203

200

197

200

Female

48

51

52

59

67

146

151

149

149

155

Male

142

146

144

142

143

Female

4

5

5

7

12

【Number of generalemployees】

102

103

103

107

112

Male

58

57

56

55

57

Female

44

46

47

52

55

57

52

47

50

38

Male

17

18

19

22

15

Female

40

34

28

28

23

2,227

2,260

2,224

2,252

2,226

Male

1,473

1,504

1,479

1,488

1,466

Female

754

756

745

764

760

Number of executives

18

17

18

16

16

Male

18

17

18

16

16

Female

0

0

0

0

0

1,654

1,687

1,701

1,738

1,769

Male

1,250

1,270

1,262

1,287

1,289

Female

404

417

439

451

480

Breakdown

Breakdown

Number of staﬀ other thanemployees
Breakdown

Executives and employees
total
Breakdown

Breakdown

Number of company
employees
Breakdown
Nichirei
Fresh【Number of employees inmanagement positions】
Breakdown

Breakdown

Number of staﬀ other thanemployees
Breakdown
Nichirei
Logistics
Group

Executives and employees
total
Breakdown

Breakdown

Number of company
employees
Breakdown147

【Number of employees inmanagement positions】

467

466

464

479

499

Male

457

454

451

464

469

Female

10

12

13

15

30

【Number of generalemployees】

1,187

1,221

1,237

1,259

1,270

Male

793

816

811

823

820

Female

394

405

426

436

450

555

556

505

498

441

Male

205

217

199

185

161

Female

350

339

306

313

280

115

115

131

129

140

Male

56

58

63

63

69

Female

59

57

68

66

71

Number of executives

4

5

5

6

6

Male

4

5

5

6

6

Female

0

0

0

0

0

65

68

79

77

86

Male

45

47

50

49

53

Female

20

21

29

28

33

33

35

35

37

40

Male

28

28

27

28

29

Female

5

7

8

9

11

【Number of generalemployees】

32

33

44

40

46

Male

17

19

23

21

24

Female

15

14

21

19

22

46

42

47

46

48

Male

7

6

8

8

10

Female

39

36

39

38

38

Breakdown

Breakdown

Number of staﬀ other thanemployees
Breakdown

Executives and employees
total
Breakdown

Breakdown

Number of company
employees
Breakdown
Nichirei
Biosciences【Number of employees inmanagement positions】
Breakdown

Breakdown

Number of staﬀ other thanemployees
Breakdown* Staﬀ other than employees: Includes temporary employees, contract employees, ﬁxed-term employees and part-time
employees; excludes dispatched employees* Employee-related Data applies to employees working at the following 15 companies (FY2020)
1 Nichirei Corporation

2 Nichirei Foods

3 Nichirei Fresh

4 Nichirei Logistics Group

5 Logistics Network

6 Nichirei Logistics Hokkaido

7 Nichirei Logistics Tohoku

8 Nichirei Logistics Kanto

9 Nichirei Logistics Tokai

10 Nichirei Logistics Kansai

11 Nichirei Logistics Chushikoku

14 Nichirei Logistics Engineering

15 Nichirei Biosciences

148

12 Nichirei Logistics Kyushu

13 Kyokurei Operation

■Female Managers Ratio
Coverage

Item

Unit

FY2016FY2017FY2018FY2019FY2020Nichirei
Group

5.8

6.1

6.8

7.1

9.0

NichireiCorporation

18.2

21.0

23.4

24.1

25.0

Nichirei
Foods

7.0

6.4

6.7

6.6

7.2

2.7

3.3

3.4

4.7

7.7

Nichirei
Logistics
Group

2.1

2.6

2.8

3.1

6.0

Nichirei
Biosciences

15.2

20.0

22.9

24.3

27.5

%

Nichirei
Fresh* Applicability: Employees■Average age
Coverage

Item

NichireiGroup
NichireiCorporation
Nichirei
Foods
Nichirei
Fresh

Breakdown

Nichirei
Logistics
Group
Nichirei
Biosciences

Unit

FY2016FY2017FY2018FY2019FY2020

Male

41.2

41.6

41.9

42.1

42.3

Female

39.0

39.5

39.6

39.8

39.9

Male

42.7

43.7

43.3

44.1

44.2

Female

40.9

41.1

41.9

43.1

44.5

Male

41.4

41.8

42.3

42.5

42.8

Female

40.7

40.8

41.2

41.5

41.5

42.5

42.8

42.9

42.6

42.7

Female

42.5

42.6

42.5

41.2

41.5

Male

41.1

41.1

41.2

41.6

41.6

Female

36.9

37.6

37.6

37.9

37.8

Male

40.9

40.6

40.2

40.7

40.9

Female

37.3

37.7

36.3

36.7

36.2

Male

Age

* Applicability: Employees

149

■Average Number of Years Employed
Coverage

Item

NichireiGroup
NichireiCorporation
Nichirei
Foods
Nichirei
Fresh

Breakdown

Nichirei
Logistics
Group
Nichirei
Biosciences

Unit

FY2016FY2017FY2018FY2019FY2020

Male

16.2

16.4

16.7

16.7

17.0

Female

14.8

15.1

15.3

15.7

15.3

Male

17.5

18.3

18.2

19.1

19.0

Female

15.4

13.6

14.4

18.5

15.8

Male

16.2

16.8

17.3

17.7

18.0

15.5

15.8

16.3

16.7

16.8

18.5

18.7

18.8

18.4

18.4

Female

20.8

20.9

20.5

18.6

18.0

Male

15.6

15.6

15.7

15.9

15.9

Female

13.5

14.1

14.1

14.3

13.9

Male

15.2

14.9

14.2

15.3

15.2

Female

13.2

13.4

11.9

12.1

11.7

FemaleMale

Year* Applicability: Employees* There may be diﬀerences between the year in which calculations began and the year that an employee joined the Company
due to factors including the merger or separation of the company to which they are assigned and employee promotions.

■Number of Employees Hired (new graduates, mid-career)
Coverage

Item

Unit

New
graduates
NichireiGroup total

Breakdown

FY2016

NumberofpeopleBreakdown

88

104

58

57

54

46

49

25

35

47

42

55

45

68

45

80

113

Male

36

42

36

60

52

Female

9

26

9

20

61

5

5

3

0

4

Male

5

1

2

0

4

Female

1

4

1

0

0

2

22

4

2

37

Male

1

4

2

2

5

Female

1

18

2

0

32

29

25

27

31

33

Male

20

15

18

20

14

Female

9

10

9

11

19

3

2

8

13

16

Male

3

2

1

6

11

Female

0

0

1

7

5

8

9

10

10

9

Male
FemaleNew
graduates
Nichirei
Foods

Breakdown
Mid-career
Breakdown

Nichirei

FY2020101

Mid-career
Breakdown

FY201992

New
graduates
NichireiCorporation

FY201883

Mid-career
Breakdown

FY2017

New
150

Freshgraduates
Breakdown

Male

7

6

7

6

6

Female

1

3

3

4

3

3

1

0

5

11

Male

2

1

0

1

2

Female

1

0

0

4

9

38

47

53

42

50

Male

25

32

24

19

22

Female

13

15

29

23

28

36

41

32

60

46

Male

29

34

26

51

31

Female

7

7

6

9

15

3

6

8

5

8

Male

2

3

3

1

3

Female

1

3

5

4

5

1

2

1

0

3

Male

1

1

1

0

3

Female

0

1

0

0

0

Mid-career
BreakdownNew
graduates
Nichirei
Logistics
Group

Breakdown
Mid-career
BreakdownNew
graduates

Nichirei
Biosciences

Breakdown
Mid-career
Breakdown* Applicability: Employees■Number of Resignations/Resignation Rate/Reasons for Resignation
Coverage

Item

Unit

FY2016FY2017FY2018FY2019FY2020

144

131

137

146

159

61

52

48

64

65

62

65

69

74

84

Company
circumstances

2

1

0

0

0

Others

19

13

20

8

10

Resignation rate

2.2%

2.0%

2.3%

2.1%

2.4%

Number of Resignations

10

9

9

12

10

Retirement

3

2

3

6

3

Personal
circumstances

6

5

4

5

6

Company
circumstances

0

0

0

0

0

Others

1

2

2

1

1

Resignation rate

3.7%

3.2%

2.8%

3.0%

3.1%

Number of Resignations

43

52

43

57

59

Retirement

22

22

17

30

29

Personal
circumstances

17

26

23

26

26

Number of Resignations
Retirement
NichireiGroup total

NichireiCorporation

Nichirei
Foods

Breakdown
by reason

Breakdown
by reason

Breakdown
by reason

Personal
circumstances

Numberofpeople151

Nichirei
Fresh

Nichirei
Logistics
Group

Nichirei
Biosciences

Company
circumstances

0

0

0

0

0

Others

4

4

3

1

4

Resignation rate

1.4%

1.9%

1.7%

1.7%

1.9%

Number of Resignations

9

9

10

14

9

Retirement

5

3

2

7

4

Personal
circumstances

3

3

7

4

5

Company
circumstances

0

0

0

0

0

Others

1

3

1

3

0

Resignation rate

1.6%

2.3%

3.1%

2.7%

1.8%

Number of Resignations

80

59

72

60

74

Retirement

31

25

25

21

29

Personal
circumstances

35

29

35

36

41

Company
circumstances

2

1

0

0

0

Others

12

4

12

3

4

Resignation rate

2.9%

2.0%

2.7%

2.3%

2.5%

Number of Resignations

2

2

3

3

7

Retirement

0

0

1

0

0

Personal
circumstances

1

2

0

3

6

Company
circumstances

0

0

0

0

0

Others

1

0

2

0

1

Resignation rate

3.0%

2.7%

2.6%

3.6%

8.1%

Breakdown
by reason

Breakdown
by reason

Breakdown
by reason* Applicability: Employees* The turnover rate is calculated based on employees who resigned excluding retired employees* "Others" includes appointed executives who resigned

152

■Number of Employees Rehired After Retirement
Coverage

Item

Unit

FY2016FY2017FY2018FY2019FY2020NichireiGroup total

54

45

44

59

57

NichireiCorporation

3

2

3

5

3

Nichirei
Foods

18

19

14

28

25

5

3

2

7

3

28

21

24

19

26

Nichirei
Biosciences

0

0

1

0

0

Ref.
Number of
employees
who retired
group total

61

52

48

64

65

Nichirei
Fresh

NumberofpeopleNichirei
Logistics
Group* Applicability: Employees, people working in their 60s* Number of people rehired among employees who retired in each ﬁscal year
* Rehired nearly 100% of those who wanted to be rehired■Employment Rate of People with Disabilities
Coverage

Item

Nichirei
Group

Unit

FY2016%

2.64

FY2017

2.62

FY20182.5

FY20192.56

FY20202.75* Statutory rate: 2.2%（From FY2019）* Applicable scope: Nichirei Aura (special subsidiary) Group applied company* Group applied companies (FY2019): Nichirei, Nichirei Foods, Nichirei Fresh, Nichirei Logistics Group, Nichirei Biosciences,
Logistics Network, Nichirei Logistics Kanto, Nichirei Logistics Engineering, Tokyo Nichirei Services, Nichirei Aura

■Annual Total of Actual Hours Worked
Coverage

NichireiGroup total

NichireiCorporation

Item

Unit

FY2016

Total

hours

2,025

2,026

2,025

1,997

1,977

Oﬃcialworking
hours-Hoursof vacation
time

1,807

1,804

1,801

1,780

1,758

Hours worked
outside oﬃcial
working hours

218

222

225

217

219

Total

1,934

1,943

1,906

1,905

1,899

Oﬃcialworking

1,732

1,740

1,729

1,718

1,724

153

FY2017FY2018FY2019FY2020hours-Hoursof vacationtime

Nichirei
Foods

Nichirei
Fresh

Nichirei
Logistics
Group

Nichirei
Biosciences

Hours worked
outside oﬃcial
working hours

202

203

176

187

175

Total

1,987

2,007

2,020

1,998

2,005

Oﬃcialworking
hours-Hoursof vacation
time

1,790

1,791

1,790

1,772

1,758

Hours worked
outside oﬃcial
working hours

197

216

230

226

247

Total

1,983

1,972

1,981

1,948

1,948

Oﬃcialworking
hours-Hoursof vacation
time

1,800

1,796

1,795

1,770

1,754

Hours worked
outside oﬃcial
working hours

183

176

185

178

194

Total

2,076

2,061

2,052

2,014

1,970

Oﬃcialworking
hours-Hoursof vacation
time

1,833

1,826

1,821

1,796

1,763

Hours worked
outside oﬃcial
working hours

243

235

231

218

207

Total

1,993

2,024

1,980

1,954

1,882

Oﬃcialworking
hours-Hoursof vacation
time

1,738

1,761

1,749

1,736

1,716

Hours worked
outside oﬃcial
working hours

255

263

232

218

166

* Average number of hours worked per employee annually* Applicability: Employees

154

■Annual Paid Vacation: Average Number of Days and Acquisition Rate
Coverage
NichireiGroup

NichireiCorporation

Nichirei
Foods

Nichirei
Fresh

Nichirei
Logistics
Group

Nichirei
Biosciences

Item

Unit

FY2016

Average days
acquired

Days

5.7

5.5

6.6

8.0

10.2

Acquisition
rate

%

29.6

28.5

34.8

41.8

53.4

Average days
acquired

Days

12.9

10.9

14.3

15.1

14.8

Acquisition
rate

%

67.2

58.5

76.9

78.0

77.1

Average days
acquired

Days

6.8

6.4

7.4

8.3

10.2

Acquisition
rate

%

35.1

33.0

37.9

42.7

52.4

Average days
acquired

Days

7.5

6.8

7.9

9.9

11.6

Acquisition
rate

%

39.1

35.5

41.2

51.9

60.9

Average days
acquired

Days

3.4

3.6

4.6

6.5

9.3

Acquisition
rate

%

18.1

19.2

24.8

34.6

49.3

Average days
acquired

Days

11.5

9.5

12.6

12.5

14.2

Acquisition
rate

%

60.9

51.3

70.7

69.0

79.4

FY2018FY2019FY2017FY2018FY2019FY2020* Applicability: Employees* Acquisition rate = Days acquired ÷ Number of days granted (excluding carry over days)* Other special holidays (summer vacation) averaged 2.9 days per employee (FY2019).

■Employees Using Time Oﬀ for Childrearing
Coverage

Item

NichireiGroup total
NichireiCorporation
Nichirei
Foods
Nichirei
Fresh
Nichirei
Logistics
Group
Nichirei
Biosciences

Breakdown

Unit

FY2016FY2017

FY2020

Male

0

0

2

1

2

Female

52

44

34

42

48

Male

0

0

2

0

1

Female

4

4

1

2

6

Male

0

0

0

1

1

28

20

17

14

17

0

0

0

0

0

0

3

0

2

1

Male

0

0

0

0

0

Female

15

15

15

20

22

Male

0

0

0

0

0

Female

5

2

1

4

2

FemaleMale
FemaleNumberofpeople155

* Applicability: Employees* From FY2015, includes employees taking maternity leave■Employees Using Time Oﬀ for Caregiving
Coverage

Item

Unit

FY2016FY2017FY2018FY2019FY2020NichireiGroup total

1

1

0

3

2

NichireiCorporation

0

0

0

0

0

1

1

0

3

2

0

0

0

0

0

Nichirei
Logistics
Group

0

0

0

0

0

Nichirei
Biosciences

0

0

0

0

0

Nichirei
Foods

NumberofpeopleNichirei
Fresh* Applicability: Employees■Number of Work-Related Accidents at Food Plants
Coverage

Food
PlantsItem

Unit

FY2016

Number of losttime injuries
Number ofdays ofinactivity

FY2017FY2018FY2019FY2020

21

17

34

34

29

23

18

12

11

16

Case

* Scope of applicability: Employees at Nichirei Foods-owned plants and subsidiary of Nichirei Fresh in Japan* Incudes contract employees, ﬁxed-term employees and part-time employees■Number of occupational deaths
Coverage

Item

Unit

Regularemployees

NichireiGroup

Nonemployees(including
temporaryemployees,
contract
employees,
part-time
workers, etc.
& excepting
agency temps)

FY2016FY2017FY2018FY2019FY2020

-

0

1

0

0

-

0

0

0

0

Case

156

■General regular health checkup rate
Coverage

Item

Unit

FY2016

%

92.0

Unit

FY2016

NichireiGroup

FY201799.3

FY2018FY201999.8

100

FY2020100■Stress Check Coverage
Coverage

Item

Nichirei
Group

%

-

FY201788.3

FY2018FY201989.2

90.1

FY202089.6■New Graduate Hire Turnover Status
Coverage

Joined Company in
FY2014

Joined Company in
FY2015

Nichirei Group total

Turnover (number ofpeople)Item

Joined Company in
FY2016

Joined Company in
FY2017

Joined Company in
FY2018

Nichirei Corporation
Joined Company in
FY2014

Joined Company in
FY2015

Turnover rate(%)

End of ﬁrst year

1

1.3%

End of second
year

3

3.8%

End of third
year

4

5.0%

End of ﬁrst year

0

0.0%

End of second
year

5

4.7%

End of third
year

7

6.6%

End of ﬁrst year

1

1.2%

End of second
year

5

6.0%

End of third
year

7

8.4%

End of ﬁrst year

1

1.1%

End of second
year

2

2.2%

End of third
year

8

8.7%

End of ﬁrst year

4

4.3%

End of second
year

10

10.9%

End of third
year

17

18.5%

End of ﬁrst year

0

0.0%

End of second
year

0

0.0%

End of third
year

0

0.0%

End of ﬁrst year

0

0.0%

End of second

0

0.0%

157

year

Joined Company in
FY2016

Joined Company in
FY2017

Joined Company in
FY2018Joined Company in
FY2014

Joined Company in
FY2015

Nichirei Foods

Joined Company in
FY2016

Joined Company in
FY2017

Joined Company in
FY2018

Nichirei Fresh
Joined Company in
FY2014End of third
year

0

0.0%

End of ﬁrst year

1

20.0%

End of second
year

1

20.0%

End of third
year

1

20.0%

End of ﬁrst year

0

0.0%

End of second
year

0

0.0%

End of third
year

0

0.0%

End of ﬁrst year

0

0.0%

End of second
year

0

0.0%

End of third
year

0

0.0%

End of ﬁrst year

0

0.0%

End of second
year

0

0.0%

End of third
year

1

3.3%

End of ﬁrst year

0

0.0%

End of second
year

3

8.3%

End of third
year

3

8.3%

End of ﬁrst year

0

0.0%

End of second
year

2

6.9%

End of third
year

3

10.3%

End of ﬁrst year

0

0.0%

End of second
year

1

4.0%

End of third
year

2

8.0%

End of ﬁrst year

0

0.0%

End of second
year

1

4.0%

End of third
year

3

12.0%

End of ﬁrst year

0

0.0%

End of second
year

0

0.0%

End of third
year

0

0.0%

158

Joined Company in
FY2015

Joined Company in
FY2016

Joined Company in
FY2017

Joined Company in
FY2018Joined Company in
FY2014

Joined Company in
FY2015

Nichirei Logistics
Group

Joined Company in
FY2016

Joined Company in
FY2017

Joined Company in
FY2018

Nichirei Biosciences

Joined Company in
FY2014End of ﬁrst year

0

0.0%

End of second
year

0

0.0%

End of third
year

0

0.0%

End of ﬁrst year

0

0.0%

End of second
year

1

12.5%

End of third
year

1

12.5%

End of ﬁrst year

0

0.0%

End of second
year

0

0.0%

End of third
year

0

0.0%

End of ﬁrst year

1

11.1%

End of second
year

2

22.2%

End of third
year

3

33.3%

End of ﬁrst year

1

2.6%

End of second
year

3

7.7%

End of third
year

3

7.7%

End of ﬁrst year

0

0.0%

End of second
year

2

3.5%

End of third
year

3

5.3%

End of ﬁrst year

0

0.0%

End of second
year

1

2.6%

End of third
year

2

5.3%

End of ﬁrst year

1

2.1%

End of second
year

1

2.1%

End of third
year

6

12.8%

End of ﬁrst year

3

6.4%

End of second
year

6

12.8%

End of third
year

8

17.0%

End of ﬁrst year

0

0.0%

End of second
year

0

0.0%

159

Joined Company in
FY2015

Joined Company in
FY2016

Joined Company in
FY2017

Joined Company in
FY2018End of third
year

0

0.0%

End of ﬁrst year

0

0.0%

End of second
year

0

0.0%

End of third
year

1

33.3%

End of ﬁrst year

0

0.0%

End of second
year

0

0.0%

End of third
year

0

0.0%

End of ﬁrst year

0

0.0%

End of second
year

0

0.0%

End of third
year

0

0.0%

End of ﬁrst year

0

0.0%

End of second
year

1

16.7%

End of third
year

3

50.0%

* Applicability: Employees■Nichirei Group Main education and training
General employees

Managers

OﬃcersTraining by
rank*New employees training*1st to 3rd year employees
follow-up training*Mid-career employees training*New managers training*Next-generation executives
training course*Management training

Training bypurpose*Facilitation training*Career seminar for female employees*Female leaders development program*Coaching training*Foreign Languages training*Evaluators training*Critical Thinking*Marketing*Accounting*New oﬃcers seminar*Media training*Directors and executiveoﬃcers training*Management training*Coaching training■Nichirei Group Education time and number of participants
Training by rank andpurpose

Education time (cumulative
total)

Number of participants (cumulative
total)FY201845,6491,379

FY201949,7301,699

FY202047,190

1,596

Total

142,569

4,674

160

Environmental Data
Nichirei Group Mediumterm Environmental
Plan Targets (FY2020FY2022)

Nichirei Group CO₂
Emissions

Amount of Discharged
Waste and Recycling
Rates

Nichirei Group Material
Balance OUTPUT

Nichirei Group speciallycontrolled indutrial
waste emissions

Nichirei Group Material
Balance INPUT■Nichirei Group Medium-term Environmental Plan Targets (FY2020-FY2022)

Nichirei Group
Medium-term
Environmental Plan
Targets (FY2020FY2022)

Item

Contents

Reduction of CO₂
Emissions* Power coeﬃcient: Fixed to the FY2014 coeﬃcient

Maintaining Waste
Recycling Rate andControlling Waste
Discharging

・Maintained waste recycling rate at over 99% at food plants anddistribution centers
・Reduce residue of material derived from animal and plant (foodplants in Japan)

Water Resource
Conservation

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

Maintain FY2014 CO₂ emission levels in FY2022

Engaged in collecting data regarding the environment at overseas worksites■Nichirei Group CO₂ Emissions
Item

Unit

FY2014FY2016FY2017FY2018FY2019FY2020

Fixed power emission
coeﬃcient※1

1,000 tons tCO₂

229

226

228

226

228

225

Variable power emission
coeﬃcient※2

1,000 tons tCO₂

229

287

280

269

260

241

※1 Fixed power emission coeﬃcient: The CO₂ emission intensity unit of 0.412 [t-CO₂/MWh] announced by the Federation ofElectric Power Companies of Japan in FY2010, used nationwide.
※2 Variable power emission coeﬃcient: Power conversion coeﬃcient used by power companies in ﬁscal year utilized at each
worksite.

■Amount of Discharged Waste and Recycling Rates
Item

Unit

FY2016

Amount of discharged waste

1,000 tons

41.9

45.2

46.3

45.4

47.9

Recycling Rates

%

99.7

99.7

99.6

99.5

99.4

161

FY2017FY2018FY2019FY2020■Nichirei Group Material Balance INPUT
Item

Raw materials

EnergyBreakdown of energy(1,000 GJ) used at eachbusiness company

Water

Breakdown of water(1,000 m3) used at eachbusiness company

Unit

FY2016FY2017FY2018FY2019FY2020

Total

1,000
tons

167

185

188

195

200

Material

1,000
tons

149

167

170

177

181

Packagingmaterials

1,000
tons

18

18

18

18

19

Total

1,000
GJ

5,063

5,109

5,078

5,107

5,079

Purchased power

1,000
kWh

444,843447,574

443,480

447,277

444,335

Heavy oil

kl

3,329

3,335

3,319

2,609

1,926

Kerosene

kl

198

200

191

173

192

City gas

1,000m3

6,385

6,705

6,923

7,142

9,036

LGP

tons

4,623

4,620

4,650

4,814

3,614

Gasoline(Companyowned vehicles)

kl

524

467

461

402

322

Light oil(Companyowned vehicles)

kl

1,270

1,340

1,378

1,556

1,452

Solar power
generation

1,000
kWh

186

211

400

1,444

2,717

Nichirei Foods

1,000
GJ

1,649

1,716

1,726

1,761

1,759

Nichirei Fresh

1,000
GJ

173

179

169

173

172

Nichirei Logistics
Group

1,000
GJ

3,159

3,129

3,098

3,089

3,046

Nichirei
Biosciences

1,000
GJ

10

8

11

12

33

Others

1,000
GJ

72

73

74

72

69

Total

1,000m3

4,033

3,931

4,084

4,117

4,028

Clean water3

1,000m

1,336

1,284

1,256

1,267

1,238

Industrial water

1,000m3

853

877

917

907

897

Groundwater(well water)

1,000m3

1,845

1,770

1,911

1,943

1,893

Nichirei Foods

1,000m3

2,595

2,581

2,789

2,812

2,739

Nichirei Fresh3

1,000m

352

353

331

322

318

Nichirei Logistics
Group

1,000m3

1,070

977

947

963

952

Nichirei
Biosciences

1,000m3

5

8

6

6

8

Others1,000m3

12

12

12

13

11

162

■Nichirei Group Material Balance OUTPUT
Item

Waste

Breakdown of discharged
waste (tons) at eachbusiness company

Atmospheric system

Breakdown of CO₂
emissions (tons) at eachbusiness company

Water system

Breakdown of drainage(1,000 m3) at eachbusiness company

Unit

FY2016FY2017FY2018FY2019FY2020

Amount ofDischarged
Waste

1,000
tons

41.9

45.2

46.3

45.4

47.9

Recycle volume

1,000
tons

41.7

45.0

46.1

45.2

47.6

Volume of waste
for ﬁnal disposal
*1

1,000
tons

0.2

0.2

0.2

0.2

0.3

Nichirei Foods

tons

18,46921,29021,904

18,155

21,561

Nichirei Freshtons

11,02911,453

11,426

13,973

13,609Nichirei Logistics
Group

tons

12,36012,45912,905

13,236

12,666

Nichirei
Biosciences

tons

43

37

46

44

72

Others

tons

ー

ー

ー

ー

ー

CO₂ *2

tons

286,382

279,465

273,348

259,980

241,235

5

4

4

3

3

SOx *3
Nichirei Foods

tons

92,894

93,61393,07690,717

84,579Nichirei Fresh

tons

9,830

9,914

9,281

9,376

9,336

Nichirei Logistics
Group

tons

179,529

171,652

166,509155,815

142,477

Nichirei
Biosciences

tons

406

538

574

568

1,561

Others

tons

3,724

3,747

3,909

3,503

3,282

Drainage3

1,000m

2,444

2,525

2,467

2,421

2,398

Sewer system

1,000m3

1,530

1,577

1,522

1,464

1,447

Public waterarea (river etc.)

1,000m3

913

948

945

957

951

Drainage load
BOD *4

tons

26

46

48

48

49

COD *4

tons

19

24

23

24

23

Nichirei Foods

3

1,000m

1,902

1,922

1,758

1,751

1,752

Nichirei Fresh

1,000m3

165

234

328

308

309

Nichirei Logistics
Group

1,000m3

360

349

362

343

317

Nichirei
Biosciences

1,000m3

5

8

6

6

8

Others1,000m3

12

12

12

14

12

163

■Nichirei Group specially controlled indutrial waste emissions
Unit
Special controlled industrial waste
emissions ("Flammable waste oil" and"Strong acid/strong alkali") etc.
classiﬁed as industrial waste due todanger and toxicity)kg

FY2015FY2016FY2017FY2018FY2019FY2020

11.7

11.1

3.8

9

9.3

7.4

*1 Within waste discharged, the volume of waste directly disposed of in landﬁlls and simply incinerated not to be used asenergy 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.

Applicable Worksites
Environmental Data: Applicable Worksites for FY2020 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 (2), Fresh Chicken Karumai, Fresh Meat Sakudaira
Nichirei Logistics Group
Logistics Network (38), NK Trans (4), Nichirei Logistics Hokkaido (8), Nichirei Logistics Tohoku (5), Nichirei Logistics
Kanto (10), Nichirei Logistics Tokai (11), Nichirei Logistics Kansai (13), Nichirei Logistics Chushikoku (15), Nichirei
Logistics Kyushu (15), Kyokurei (5)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 andoﬃces other than 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.
* Total ﬁgures may diﬀer due to the rounding eﬀect.

164

Corporate Governance Data

■Board of Directors composition
Category
Insidedirectors

Outsidedirectors

Total

Gender

FY2018 (Number ofpeople)FY2019 (Number ofpeople)FY2020 (Number ofpeople)

Male

7

7

7

Female

0

0

0

Total

7

7

7

Male

1

1

1

Female

2

2

2

Total

3

3

3

Male

8

8

8

Female

2

2

2

Total

10

10

10

■Board of Directors meeting attendance rate
Category

FY2018 (%)

FY2019 (%)

FY2020 (%)

Inside directors

97.7

97.4

100

Outside directors

96.5

98.2

94.4

165

External Review
External Review
The Nichirei Group has been rated highly by various external organizations as a corporate group that is enhancing
communication, and which shares 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.

External Evaluations
Incorporation of ESG Indexes

FTSE4Good Index Series
World-renowned ESG investment index published since 2001 by FTSE International(currently FTSE Russell), a wholly-owned subsidiary of the London Stock Exchange(LSE) Group.

year
2019

2018

2017

2016

2015

2014

2013

2012

2011

2010

2009

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

2008

2007

2006

2005

2004

2003

2002

2001

2000

1999

1998

✓

✓

✓

✓

✓

✓

―

―

FTSE Blossom Japan Index
FTSE Russell announced in 2017, an index composed of Japanese companies thathave made excellent responses to the environment, society and governance (ESG),
and promoting active participation of femaile workers.

year
2019

2018

2017

✓

✓

✓

2016

2015

2014

166

2013

2012

2011

2010

2009

MSCI Japan ESG Select Leaders Index
This is an index developed by MSCI in the US, and companies with excellent ESG(Environment, Society and Governance) are selected in each industry (formerly
MSCI Global Sustainability Indexes).

year
2019

2018

2017

✓

✓

✓

2016

2015

2014

2013

2012

2011

2010

2009

MSCI Japan Empowering Women Index (WIN)ESG investment index released in 2017 by US-based MSCI. Companies withexcellent gender diversity are selected from the top 500 stocks by market value inJapan.

year
2019

2018

2017

✓

✓

✓

2016

2015

2014

2013

2012

2011

2010

2009

SNAM Sustainability Index
An index consisting of companies whose ESG score is above the standard incompany surveys on SOMPO Risk Management Inc.'s environment (E), Integrex
Inc.'s society (S) and governance (G).

year
2019

2018

2017

2016

2015

2014

2013

2012

✓

✓

✓

✓

✓

✓

―

―

2011

2010

2009

CDP (Climate Change / Water Security)
CDP is an international NGO that operates a global information disclosure system
for investors, companies, cities, nations and regions to manage environmental
impacts. On behalf of institutional investors, investigating, evaluating and disclosing
environmental initiatives. For climate change, more than 7,000 companies, which are equivalent to more than 50%of the global market capitalization, responded.

■Climate Change

year

2018

2017

2016

2015

2014

2013

2012

2011

2010

2009

2008

B

C

A-

C

C

C

31

―

―

―

―

167

■Water Security

year

2018

2017

2016

2015

2014

2013

2012

2011

2010

2009

2008

B-

B-

―

―

―

―

―

―

―

―

―

■List of Certiﬁcations
Acquisition
Year

Name

From
FY2019DBJ
Employees'
HealthManagement
Rated Loan
ProgramFrom
FY2017The Certiﬁed
Health andProductivity
Management
Organization
Recognition
Programunder thelarge
enterprise
category

From
FY2018Eruboshi“Stage 3”(Accreditedby theMinister of
Health, Laborand Welfare
based on the“The Act ofPromotion of
Women'sParticipation
andAdvancementin theWorkplace")https://www.nichirei.co.jp/news/2017/293.html(Japanese only)

From
FY2010"The Act on
Advancementof Measures
to Support
Raising NextGeneration
Children"
certiﬁcation
mark(nickname:
Kurumin)https://www.nichireifoods.co.jp/corporate/csr/employee.html(Japanese only)

https://www.nichirei.co.jp/news/2019/328.html(Japanese only)168

■Awards
AwardsYear

Name

OutlineSponsored by Consumer Aﬀairs Agency
A system that recognizes businesses that promote consumer-oriented businessactivities, “consumer-oriented management” (nickname: sustainable management)
Eﬀort to promote SDGs was evaluated by supporting employees 'voluntary activities
through Nichirei Foods' unique “Hamidas activities”, promoting food education
activities, contributing to the local community through environmental conservation
activities, and working with food banks.

FY2019

1st Award forGood Practicesof Consumeroriented
Received theConsumer
Aﬀairs Agency
Director'sCommendation

FY2018

Tokyo Stock
Exchange, Inc.
6th Corporate
Value
Improvement
Award
Excellent Award

Sponsored by Tokyo Stock Exchange, Inc.
This award recognizes companies that have achieved high corporate value byimplementing management with a strong focus on investor perspectives, including
capital costs.Nichirei was recognized as a high-level practice of “Corporate Value
Improvement Management” that aims to create corporate value that exceeds thecost of capital.

FY2018

Green Logistics
Partnership
ConferenceAward from the
MLIT Minister's
Secretariat
Deputy ViceMinister of
Logistics

Sponsored by Green Logistics Partnership Conference
A system implemented by the Ministry of Land, Infrastructure, Transport andTourism to recognize outstanding eﬀorts to promote CO2 reduction in the logistics
ﬁeld. Logistics Network Inc. of the Nichirei Logistics Group Inc. has been promoting
a modal shift for more than 10 years as a 3PL operator that improves and operates
all logistics for customer companies that are shippers, from procurement andinventory management to delivery. The eﬀectiveness of these eﬀorts wasrecognized, and the award was given jointly with three companies including Nichirei
Foods Inc., the shipper.

FY2017

Modal Shift
Excellentcompany
announcement/
commendation
system“The award for
ExcellentBusiness
Entities Working
on Modal Shift”

Sponsored by Japan Association for Logistics and Transport
A system that announces and commends excellent companies that have actively
promoted modal shifts in order to encourage logistics companies to promote
voluntary eﬀorts and to raise awareness of eﬀorts to promote modal shifts. The
Nichirei Logistics Group Inc. started with a modal shift in 2003, and it wasrecognized that it has continued to expand its transportation area and handlingvolume.

FY2017

Nano Tech
2017
Life
Nanotechnology
Award

Sponsored by International Nanotechnology Exhibiton & Conference
Exhibitors' innovative and pioneering technologies and products are selected foreach ﬁeld, and excellent exhibitors are selected. Nichirei is trying to make use of
the research and results of antifreeze proteins discovered from ﬁsh inhabiting cold
regions in a wide range of ﬁelds such as food, medicine and industry, and theiractivities were evaluated. As an example of an application ﬁeld, there is a reduction
in tissue damage after freezing and thawing in gel foods such as tofu and agar.

169

Foster Cooperative Relations with Communities

Stakeholder Engagement
As it engages in global business activities, the Nichirei Group recognizes the importance of communicating andmaintaining dialogue with its diverse stakeholders. To foster deeper mutual understanding, the Group is fostering a
number of initiatives, and encouraging the disclosure of relevant information, in order to reﬂect the expectations andconcerns of its stakeholders, while building corporate value by establishing friendly, long-term relationships.

Stakeholder

Customer

Shareholder/
Investor

Business
partner

TargetBetter customer
satisfaction and corporate
branding: to be achieved
through prompt,
appropriate, and sincere
responses to consumer
requests and feedback.

Deeper understanding of
the Company and higher
corporate value: to beachieved by timely andappropriate disclosures.

Strong, eﬀective, andstable long-term
relationships withbusiness partners
throughout the supply
chain

Primary issue

Mean/method ofcommunication

Frequency

Qualityassurance for
products andservices

Customer Service
CenterRoutineProper deliveryof information

Customer satisfaction
surveyOnce a year

WebsiteAs necessary

Social media

As necessary

General Meetings ofShareholders

Once a year

Financial results
brieﬁngs

Four times a year

Business information
sessions, facility tours

Once a year

Detailed interviews
with individual
investors from Japanand overseas

As necessary

IR website

As necessary

Integrated Report

Once a year

Business Report

Twice a year

CSR procurement
survey for suppliers

Survey ongoingsince 2018

Meetings and seminars
with invited
participation frombusiness partners

Once a year

Supply ofdelicious food, as
well as greater
availability of,and better
accessibility to, arich array ofmeal options

Maintaining andimprovingcorporate value
Appropriate
distribution of
proﬁtsDisclosure of
accurate
information

CSR procurement
Mutualdevelopment
achieved throughcustomer
intimacy

170

Stakeholder

Employee

Local community

Tradeorganization/
NGO/NPO

TargetFavorable labor–
management relations;
greater employee
motivation; a dynamic
organizational climate

Smooth, enduringbusiness operations as atrusted and respectedcompany: to be achievedby building favorable
relations withsurrounding
communities.

Collaboration with othercompanies, by taking partin conferences and otherevents involving
government ministries
and trade organizations;resolving of social issues
by collaborating andcooperating with NGOs
and NPOs in Japan andabroad.

Primary issue

Occupationalsafety, health
Job satisfaction
Workstyle reform
Healthmanagement

Harmonious
coexistence with
local
communities
Preservation of
local
environment
Educational
activities in thelocal community

Climate change
Food loss
Sustainablepublicprocurement of
food

171

Mean/method ofcommunication

Frequency

Establishment of aninternal reporting
center

24 hours per day

Creation of an
employee assistanceand mental healthconsultation center

24 hours per day

Labor–management
council

Twice a year

Health and safetycommittee

Once per monthSymposiums involving
management andemployees

Annual (allworksites)

PR brochures

Four times a year

Intranet

RoutineEmployee award
systemOnce a year

Employee satisfaction
surveyOnce a year

Employee stress checks

Once a year

Social contribution
activities

As necessary

Participation in local
eventsAs necessary

Volunteer activities

As necessary

Dietary education
activities

As necessary

Food factory anddistribution warehousetours

As necessary

Acceptance ofinternships

As necessary

Hosting of sporting
eventsAs necessary

TCFD Consortium

As necessary

Japan Frozen Food
Association

As necessary

Japan Association ofRefrigerated
Warehouses

As necessary

Japan Fisheries
Association

As necessary

Authorized NPO Second
Harvest Japan

Twice per month

World Wide Fund for
NatureAs necessary

Roundtable on
Sustainable Palm OilOnce a year

Addressing Social Issues through Food-related Contributions
Since 2006, the Nichirei Group has been supporting the activities of a food bank, the certiﬁed NPO Second Harvest
Japan. So far, we have provided about 20,000 cases of our frozen foods to various welfare facilities, including foster
homes for children, mother and child support centers, and disability support facilities. In addition to delivering theseproducts, we also provide logistical support to ensure that the items retain their quality.
We intend to continue supporting food bank activities and hope to help resolve social issues through our food-related
contributions.

Process Leading Up to Delivery
Our fundamental stance is to provide only what is truly needed without forcing the acceptance of any extra material.

Cosponsorship of the Tokyo 2020: Food for 100,000 Project
In ﬁscal 2020, we expressed our support for activities associated with, Tokyo 2020: Food for 100,000, a project
conducted by Second Harvest Japan, and donated one million yen toward the cause.
※Tokyo 2020: Food for 100,000: A project attempting to build a safety net capable of providing an adequately life-sustaining
amount of food to 100,000 people in Tokyo and 60,000 people in Kanagawa and Saitama during a single year (2020); thisproject involves collaboration with various corporations, governments, and NPOs.

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http://2hj.org/english/100000pj

SDG Lectures Inspire Ideas on Sustainable Marine ProductDevelopment
Nichirei Fresh procures shrimp from Indonesia. Since 2006, it has participated in the Forest of Life Project,collaborating with local Indonesian partner PT. Mustika Minanusa Aurora and Tarakan City in the Indonesian provinceof North Kalimantan. Through its involvement in this project, the Company uses a portion of its earnings from salesof shrimp to help improve shrimp habitats and plant mangrove trees.
Intensive aquaculture, with its high environmental impact, is the primary method o shrimp farming. In contrast, theForest of Life Project promotes the sustainable local development of marine products through extensive aquaculture,
which does not use compound animal feed or electricity.
Recently, through its involvement in th Hakuhodo Inc. SDGs project, Earth Mall, that aims to change the future
through shopping, the Company held lectures concerning SDGs at the Saitama Prefectural Ina Gakuen Junior HighSchool with the goal of inspiring people to think about sustainable marine product development. Through thisprogram, the Company informed students primarily about supply chains used to procure the shrimp they frequently
eat and global social issues.
In addition, we worked with students to create video messages for local marine product manufacturers, who are
farming shrimp in Indonesia. The local Indonesian population viewed the video and responded with messages, giving
the local junior high school students the chance to engage in communication and learn the importance of sustainablemarine products.

December 5, 2019

December 11, 2019

December 19, 2019

February 28, 2020

July 27, 2020

LectureShrimp taste-testingVideo message

Indonesia

Review lecture

production

Nichirei Group Social Contribution Spending (three years)

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