Nichirei GroupCSR Report 2021

NICHIREI CORPORATION

Contents

Contents
CONTENTS■ Message from the President

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■ Nichirei Group Materiality
Material Matters

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Nichirei s Business Model and Advantages

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Helping to Resolve Social Issues throughOur Business

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■ Environment
Environmental Management

Corporate Governance

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Compliance / Internal Control

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■ Stakeholder Engagement

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■ Report Archives

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■ ESG Navigation

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Risk Management

Examination System
A History of Creating Value
Value Creation Process■ Governance

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Initiatives for Energy and Climate Change
Sustainable Raw Ingredients

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■ ESG-related Policies

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Initiatives for Biodiversity Conservation

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■ ESG Data

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■ External Review

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■ External Initiatives

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Initiatives for Water Resource Conservation

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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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■ Society
Food and Health: Creating New Value

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Maintain a Sustainable Supply Chain
Human Rights

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Occupational Health and Safety /Health Management

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Provide Safe Products and Services

Improving Work Satisfaction
Human Asset Cultivation and Diversity

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Message from the President
Message from the President
Resolving Social Issues, Eyeing Further Growth
On December 1, 2020, we will celebrate Nichirei’s 75th anniversary. And as I recall now, when I was appointed president, I
announced our aim to be a Company that continues to do business for the next 100 years.
In fiscal 2020, we formulated what might be called a milestone in terms of long-term management goals toward 2030, andlaunched the new medium-term business plan WeWill 2021. We have identified materiality for realizing our vision for 2030,
and have begun formulating measures and KPIs that need to be reflected in the next medium-term business plan.
Nichirei Group business activities involve a wide range of food which, by its very nature, brings with it a great social
responsibility that forms a strong connection between the sustainable growth of the Company and the realization of asustainable society. For this reason, the Nichirei Group will incorporate in its management strategy such approaches as willlink business activities with the resolution of social issues.
As we face society and take on challenges without fear of failure, we shall continue to support people’s good eating habits
over the long term.

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Nichirei Group Materiality

Nichirei Group Materiality
Material Matters

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Examination System

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A History of Creating Value

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Value Creation Process

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Nichirei s Business Model and Advantages

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Providing New Value in Frozen Foods through Development
Capabilities for Reproducing the Flavor of Meals Madeby Professional Chefs -Honkaku-Itame Cha-Han-

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Helping to Reduce Traﬃ c Congestion and CO₂ Emissions
by Introducing an Innovative Logistics System-Cross-Docking Business-

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Procuring Food through a Sustainable Regional Agriculturaland Livestock Cycle Project -Junwakei Chicken-

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Sustainable Procurement That Contributes to Local
Community Development -Acerola Business-

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Helping to Resolve Social Issues through Our Business3

Material Matters
Long-term Management Goals（Vision for 2030）

Material Matters
In June 2020, Nichirei identified five material matters fitting its concept of materiality through which it
would realize its vision regarding long-term management goals for 2030. All officers, including outside
directors, participated in the process.
Viewing rising expectations for the realization of a sustainable society as a business opportunity, Nichirei
will work with stakeholders to resolve social issues and enhance corporate value. To do so, we willcontinue to formulate goals (measures and KPIs) that link Group strategies and business strategies.

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

Creating value
in food andhealthCreate newmarkets andcustomer value
by taking onchallenges
outside existing
business areas
in both food andhealthVision for 2030

Continuing to create
new products andservices and to attract
new customers inexisting businesses,
while developing androlling out new
businesses in new
areas related to foodand healthGroup Measures
Create new highvalue-added products
and services byprioritizing allocationof resources tomarketing (consumer
understanding),
digital transformation(DX) and R&D
Create businesses in
new areas bypromoting Groupwide innovation
through theinnovation
management system(IMS) and othermeansGroup KPIs

Set targets andscope for creating
new products andservices in eachbusiness
Set quantitative
targets forcreation of andmilestones forthe progress of
new businesses* IMS：Innovation
Management
SystemStrengthening
foodprocessing andproduction
technology
capabilities;
enhancinglogistics
services

Realizingsustainablefood
procurement
and resources
recycling

Further reﬁnecore
competencies infood processing,production andlogistics toresolve social
issues andimprove
proﬁtability
throughcompetitive
advantages in
global markets

Resolving
various social
issues related tothe supply
chain, which isthe foundationof our business,and contributeto sustainablefood
procurement
and therealization of arecycling-basedsociety

Ability to generatecash improved byconcentrating
management
resources on corebusinesses

Promote capacity
expansion, work
process innovation,
reduction ofenvironmental impact
and development ofbusiness foundations
through proactive
capital expendituresin the processed foods
and logistics
businesses

Overseas businesshas become a newpillar of earnings

Accelerate overseas
expansion by securing
and training global
human resources,
cultivating partnercompanies,
conducting M&A andother means

All raw materials andingredients areprocured fromsuppliers and partnercompanies thatcomply with theGroup Supplier
Guidelines.

Establish a supply
chain withconsideration forhuman rights and theenvironment andconduct due diligence

EBITDA margin:
12%
EBITDA CAGR:
7%

Overseas sales
ratio: 30%

Rate ofprocurementfrom suppliersand OEMs thatcomply with theGroup Supplier
Guidelines: 100%Rate ofimplementationof ESG due
diligence for main

* In 1st April 2022,
the Group CSR
Procurement
Guidelines revised
to the Groupraw materials
and major
suppliers: 100%
5Applicable
SDGs

Supplier
Guidelines
Rate ofattendance for

Promoting a circular
economy by creating
new business models

Work to conductsustainable resource
procurement and help
to realize a circular
economythe SDGs
educational
program aimed
at realizing acircular economy:
100%
Rate of waste
recycling at allsites: 99%

Improved resilience ofwater resources
through anunderstanding ofwater-related risks

Identify water-relatedrisks through risk
assessments at allsites and conservewater

Conduct regularwater-related risk
assessments at
all sites, as wellas inconservation
activities and BCP
Reduction in CO₂emissions: 50%

Climatechangeinitiatives

As a food andlogistics
company that isgreatly affectedby climatechange, we will
work withstakeholders tocounter global
warming andreduce energy
consumption
throughout the
supply chain

Efforts underway to
reduce CO₂ emissions
both inside andoutside the Group
toward the goal of
becoming carbon
neutral by 2050

Reduce CO₂ emissions
per unit of production
and utilize renewableenergy at foodfactories and logistics
centers, and disclose
information based on
the TCFD
recommendations

Replace allrefrigerants used infreezing andrefrigerating
equipment in Japan
with natural

Elimination of CFCs
progressing at
production andlogistics facilities as a
global warming
countermeasurerefrigerants
Switch to naturalrefrigerants
overseas asnecessary, based on(Compared with
FY2016; Scope 1
and 2 in Japan)* In June 2021,
the Board of
Directors
revised the CO₂
emissions
reduction target
upward from
30% to 50%.

Rate ofconversion tonaturalrefrigerants
Production
equipment(Japan):100%Logistics(Global): 75%

on-site conﬁrmation
Securing anddeveloping adiverse arrayof human
resources

Secure anddevelop adiverse humanresources andfoster an
inclusive
corporate
culture toachievesustainablegrowthDiverse humanresources with various
characteristics andskills, maximizing
their potential to
improve their job
satisfaction andsupport thesustainable growth of
the Group

Introduce a Groupwide engagement

Ratio of female
directors andsurvey* to monitor
the effects ofmeasuresfemale Audit &Supervisory
Board members(HD*): 30%

Establish apersonnel systemthat enables Group
employees tochoose work styles
according to theircareer outlook and6

Ratio of femaleline managers(HD*): 30%* HD: Nichirei
Corporationcontributes to
productivity(Holding
Company)

improvement
Establish andprovide support for
application of rules* Engagement
survey: A surveythat shows degree
ofunderstandingof and resonancewith themanagement
philosophy andindependent
involvement in
the organization(job satisfaction)
Promotecommunication
activities andimpartially provide
learning
opportunities inorder to create awork environmentand corporate
culture in which
employees arehealthy, lively andsatisﬁed with theirjobs

7Doubleinvestment in
human resourcesby 2030

Examination System
Examination System
Examination System
With the representative director and president
responsible for execution, two projects involving
materiality and climate change scenarios were
implemented simultaneously between September 2019
and June 2020. We conducted repeated examinations
while linking information from both parties.
The project to formulate the materiality was led by the
executive officer who is the general manager ofStrategic Planning, and was examined by members of
the Board of Directors and all corporate officers,
including executive officers.
The climate change scenario examination project was
led by the executive officer who is the director, and who
serves as the managing director in charge of theenvironment. This was done according to advice fromexperts and the framework recommended by the TCFD.
The reviews themselves were conducted mainly withTechnology Management staffers in charge of theenvironment, as well as each Group company’s
Strategic Planning department and the managers
undertaking environment-related activities.

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Examination ScheduleExamination Schedule

1

Identifying stakeholders

Since our business domain is food provision, we are aware of our tremendous social responsibility, being involved, as weare, with many stakeholders and impacting their lives and society at large. For this reason, we have identified stakeholders
based on the size of their demand and the degree of impact we have on society.
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Identifying social issues (risks and opportunities)

After pinpointing our stakeholders, we have identified social issues from future and global perspectives.
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Evaluating social issue criticality

We then evaluated the importance of those social issues, based on the fact that proactive measures result in businessgrowth, and reactive ones prevent corporate value from being damaged.

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4Mapping material matters

We mapped material matters that would require proactive and reactive steps to be taken and, in November 2019, held
initial deliberations on the details of mapping during the Nichirei Group Strategy Committee meeting, at which we usually
discuss overall management strategies.

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Creating drafts

We created separate drafts for those issues that would require a proactive or reactive approach.

10Dialog with Outside Experts
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Dialog with Experts

In December 2019, outside experts evaluated the validity of the drafts under consideration and exchanged opinions with
Company corporate officers, including the president.
Experts

Keisuke Takegahara
Development Bank of Japan Inc.
Executive Officer, Deputy Chief
Research Officer,
Chief Manager of Sustainability
Management Office,Corporate Planning & Coordination
Department

Hidemi Tomita
Lloyd's Register Japan K.K.
Director

Yumiko Murakami
Organisation for Economic Cooperation and Development(OECD)
Head, Tokyo Center

Nichirei Group (Nichirei Corporation) members

Kunio Otani

Kenya Okushi

Takumi Taguchi

Representative
Director, Chairman

Representative Director, President

Director, Executive Officer, incharge of Nichirei Group planningand management division

Yoshifumi Kaneko

Junji Kawasaki

Masahiko Takenaga

Director, Executive Officer;
Representative Director,
President, Nichirei Fresh Inc.

Director, Executive Officer, incharge of Nichirei Group technology
management and quality assurance

Director, Executive Officer;
Representative Director, President,
Nichirei Foods Inc.

Kazuhiko Umezawa

Masato Takenaga

Director, Executive Officer;
Representative Director, President,
Nichirei Logistics Group Inc.

Executive Officer; Representative
Director, President, Nichirei
Biosciences Inc.

Kazunori Miki(facilitator)

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Executive Officer General Manager,
Strategic Planning

Opinions of outside experts
Granularity of future measures
Efforts should be made, for example, to reduce CO₂ emissions and switch to natural refrigerants to make developmental
leaps part of a long-term strategy.
Timeline to 2030
Perspectives should be divided into two groups: new management-related goals and the means by which they are to beachieved.
A way should be devised to apply global standards, such as by using responsible business conduct as a guideline.
Quality assurance
Quality and safety could be made the most important management issues.
This is currently a basic proactive item. However, should new risks arise, quality assurance could be positioned as aproactive risk factor needed to strengthen quality control.
Sustainability
Sustainable food production is linked to climate change response (CO₂ reduction) through expanding agricultural
productivity.
In maintaining temperature-controlled logistics, RE100 may be difficult. One should be aware of any linkage amongtarget items.
Since the food business is a high-risk industry, risks should be broken down in a way that is tied to particular areas ofbusiness.
EthicsThere are still few Japanese companies making significant efforts in business ethics, which fact could lead to acompetitive advantage for Nichirei.
An ethical angle is missing in marketing. We should convey the message that Nichirei products are delicious and ethicalby world standards.
Distinctive aspects of Nichirei
The Company would benefit were its distinctive features put in a visual format. In addition to its processed foods, thesefeatures would include important issues related to temperature-controlled logistics, marine items, as well as meat andpoultry products.
Given that the company is a cold chain leader, one should be able to demonstrate distinctive aspects of Nichirei's
temperaturecontrolled logistics within the TCFD framework. One might consider sending out a message regarding CFC
issues.

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Integration and Narrowing-down
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Integration and Narrowing-down

Based on opinions received from experts, we integrated and narrowed down material matters as proactive or reactive.
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Finalizing the draft

In February 2020, at the second Group Strategy Committee meeting, after repeated deliberation on both the validity
evaluation by experts and opinions on distinctive Nichirei features, agreement resulted in a draft containing five material
matters.

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Designation of Materiality
Designation of Materiality
In June 2020, five material matters were designated by the Board of Directors chaired by the Representative Director,
Chairman. Nichirei has set long-term Group goals for climate change initiatives, and will continue to consider long-termgoals (measures and KPIs) for the other four material matters.
We are discussing the five material matters with Group companies and will incorporate them into each of their businessstrategies through the formulation of an organizational profile.

Ideas Inherent in the Materiality
Material matter

Ideas inherent in the materiality

Creating value in food andhealthIn Japan—which constitutes Nichirei’s main market—changes are expected in the
future, including reduced consumption reflecting the population decline,
diversifying consumer needs, and the personalization of food and medical care. For
the Group to continue growing in this environment, while building on the coreareas of food and health, Nichirei will promote innovation and create new markets
and customer value without being bound by the framework of existing businesses.

Strengthening food processing
and production technology
capabilities; enhancing
logistics services

Expectations for frozen foods and temperature-controlled logistics are increasing interms of meeting diversifying food industry needs and resolving new social issues.
Through the utilization of new technologies such as AI, IoT and autonomous
driving, we will realize our core competence of enhancing food processing andproduction technologies, and advancing logistics services, to establish a solid
position in Japan and global markets.

Realizing sustainable foodprocurement and resources
recycling

Sustainable food procurement efforts that take into consideration the environmentand human rights are the foundation of our business, and are directly linked to theprovision of customer value and to Group growth. This will also lead to therealization of a recycling-oriented society that circulates resources as much as
possible, and to the strengthening of comprehensive business continuity
management.

Climate change initiatives

While the entire planet is required to take measures to prevent global warming, asa food and logistics company greatly affected by climate change, Nichirei will
accelerate efforts to reduce greenhouse gas emissions by setting long-term
environmental targets. We aim to reduce CO₂ emissions 30% by 2030 comparedwith 2015 levels.

Securing and developing
diverse human resources

Human resources are the Group’s most important management resource. In
addition to respecting human rights, fair labor practices and ensuring health andsafety, which are standard, Nichirei will promote the creation of workplaceenvironments in which human resources with diverse backgrounds can work. We
will also develop an organizational culture in which employees can demonstrate
their creativity through the development of human resource systems and thedevelopment of skills that will lead to the creation of new value and the resolutionof social issues.

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A History of Creating Value

Nichirei Integrated Report 2021 A History of Creating Value: Establishing a Temperature-controlled
Logistics Network

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Value Creation Process

Nichirei Integrated Report 2021 Value Creation Process16

Nichirei’s Business Model and Advantages

Nichirei Integrated Report 2021 Nichirei’s Business Model and Advantages

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Helping to Resolve Social Issues through Our Business

Providing New Value in Frozen Foods throughDevelopment Capabilities for Reproducing the Flavorof Meals Made by Professional Chefs -Honkaku-Itame
Cha-HanSocial Issues
Demand for authenticity as eating habits diversify
Increase in elderly and single-person households
In the 1990s, food options increased in Japan with the expansion of the convenience store, delicatessen, family-stylerestaurant and other outlet markets.
As eating habits diversified, demand for products with a more authentic taste began to appear in the early 2000s. In
addition, the increasing number of elderly and single-person households spurred needs for meals that were convenient andeasy to prepare.
Honkaku-Itame Cha-Han (fried rice) was launched in spring 2001 to address this demand. It was a runaway hit, offering
the deliciousness and texture of fried rice from a Chinese restaurant at home just by heating it in a microwave. Since then,we have made ongoing improvements to keep customers smiling.

Advantages
In-house Development of a Cooking Line That Reproduces the Processes ofProfessional Chefs
Before the launch of Honkaku-Itame Cha-Han in spring 2001, frozen fried rice wascloser to boiled rice with flavoring mixed in than to actual fried rice. To provide
authentic taste, Nichirei Foods observed how fried rice was cooked at well-known
restaurants, learning about the temperature and time required for heating the oil,when to add eggs, and other considerations. At a time when it was considered
impossible to fry rice in large volumes, we perfected a unique frying process thatincorporated the skills of professional chefs into a mass production line.

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Major Renewal for a Three-stage Stir-fry Manufacturing Method in 2015
To further refine the deliciousness of Honkaku-Itame Cha-Han, which had been
extremely popular since its launch, in 2015 Nichirei Foods invested about ¥3 billion toestablish a three-stage stir-fry manufacturing method. In the first stage, the rice iscoated with eggs. In the second stage, excess moisture is removed with a blast of hot
air at 250°C or higher, the same temperature as a professional chef’s wok when stirfrying, and in the third stage, the final frying is completed. This new processenhanced the deliciousness of Honkaku-Itame Cha-Han.

Commitment to Raw Material Quality
We use 100% first-class rice from Hokkaido for the main ingredient of Honkaku-Itame
Cha-Han.
First-class rice has fewer cracked hulls, is less sticky when cooked, and has a nonsticky texture even when prepared in a microwave. It also features uniform-sizedgrains that enable more even application of seasonings.

Select first-class rice grown in Hokkaido

Value Provided
Supporting good eating habits in Japan with frozen food thatapplies the skills of professional chefs

Nichirei Integrated Report 2021 Providing New Value in Frozen Foods through Development
Capabilities for Reproducing the Flavor of Meals Made by Professional Chefs -Honkaku-Itame ChaHan-

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Helping to Resolve Social Issues through Our BusinessHelping to Reduce Traffic Congestion and CO₂
Emissions by Introducing an Innovative Logistics
System -Cross-Docking BusinessSocial Issues
Diversification of logistics needs due to structural changes in the retailindustry
Strong public demand for reducing traffic congestion and CO₂ emissions
Need to reduce logistics costs and workloads at stores
In the 1980s, a drastic structural transformation occurred in Japan’s retailindustry, including the rapid rise of supermarkets and other retail chains, as
the population became more concentrated in cities and car ownershipincreased. This brought about major changes in logistics needs, such as
requirements for sorting for just-in-time delivery and stronger managementof cargo freshness.
In addition, spurred by the first environmental summit held in France in 1989, noise, CO₂ emissions and traffic congestion
due to trucks came to be recognized as major issues,
with strong calls to the logistics industry for greater efficiency.

Initiatives
Establishing Cross-Docking (XD) Centers inLine with the Structural Transformation of
the Retail Industry
The greater prevalence of retail and restaurant
chains from the 1980s rapidly increased thefrequency of warehouse loading, unloading,transportation and delivery. Therefore, Nichirei
Logistics Group established a new logistics
system using cross-docking centers for rapid
sorting and delivery of products without storage. In 1993, we began full-scale commercialization of the XD businesstailored to a variety of business types including general merchandise stores, supermarkets, convenience stores andrestaurant chains.

20Reducing Both Costs and CO₂ Emissions through Optimized Logistics
Nichirei Logistics Group’s XD business delivers products to various retail stores and restaurants, mainly the three
perishables—produce, meat and seafood—and chilled foods. XD centers function as relay points to enable small lot
deliveries with substantially fewer routes than conventional deliveries from manufacturers and wholesalers to each store.
Because fewer trucks are used, this method not only reduces logistics costs, but also contributes significantly to reducing
CO₂ emissions and traffic congestion.
Supporting Deliveries to Food Retailers in Train Stations and Department Store Food Floors
Today, our approximately 40 XD centers provide optimized logistics services customized to each customer 24 hours a day,365 days a year. We also handle outsourced deliveries to commercial spaces inside train stations and food floors indepartment stores.
In addition, delivery by category and inventory item using the minimum number of trucks has the benefit of making it easy
for stores to manage personnel for tasks such as checking and stocking shelves with incoming merchandise. This enables
stores to use the staff hours saved for customer service.
Helping to Reduce Store Workloads with Our Process Center
Function
Nichirei Logistics Group’s XD business also operates aprocessing and packaging service called Process Centers.
Process Centers provide rigorously temperature-controlled, onestop services within a single XD Center ranging from processing
meat, poultry and marine products to weighing, packing,packaging, labeling and delivery.
In addition to reducing workloads at stores, centralizing theprocessing work reduces the storage space required forinventory, thus enabling larger sales spaces.

Value Provided
Helping to improve customer operating efficiency and reduce CO₂
emissions through total services that include sorting, delivery anddistribution processing
Nichirei Integrated Report 2021 Helping to Reduce
Traffic Congestion and CO₂ Emissions by
Introducing an Innovative Logistics System Cross-Docking Business-

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Helping to Resolve Social Issues throughOur Business

Procuring Food through a Sustainable Regional
Agricultural and Livestock Cycle Project -Junwakei
ChickenSocial Issues
Improving Japanʼs self-suﬃciency for animal proteins
Improving Japanʼs self-suﬃciency for animal feed
Harmonious coexistence with local communities
Biodiversity (sustainability of breeds)
Sustainable food production
According to a 2018 survey, Japan’s self-sufficiency rate for broilers (chickens
used for meat) is relatively high at 64%. However, the self-sufficiency rate forpure Japanese broiler breeders (the parents) that have been selectively breddomestically from the grandparents is only about 1-2%, based on thenumber of chickens shipped. Avian flu, which has spread repeatedly in Japanand abroad in recent years, has the potential to halt the import of
grandparent stock. If this happens, it could devastate the domestic chicken
farming industry and cause chicken dishes to disappear from Japanese dining tables.

Initiatives
Born and Raised in Japan
In cooperation with an independent administrative agency in
Hyogo Prefecture, we succeeded in breeding Junwakei
chickens by crossing the Koyuki and Benizakura pureJapanese chicken breeds. Bred in Japan from grandparent
stock, the Junwakei chicken brand was created for thedomestic market for sustainable food self-sufficiency.

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A Method of Raising Chickens That Minimizes Their Stress
Using an up-to-date computer-based poultry management system, we strive to create a comfortable environment for ourchickens. Since their brooding period is about 60 days, which is longer than other breeds, we take the time to raise themwith care. That is why Junwakei chicken meat has the quality and deliciousness Japanese consumers demand, with tender,
richly flavorful thigh meat and finely textured, soft and juicy breast meat.
Sustainable Production Cycle Project
Using a state-of-the-art high-speed biomass
processing plant, we can produce organic
fertilizer in about eight hours, rather than thethree months or more required by our former
fermentation-based composting method.
Manure from Junwakei chickens is processed
into organic fertilizer for use in cultivating thefeed-use rice that is then used in their feed.
Most of the paddies we use to produce thisfeed-use rice are lying fallow due to riceproduction adjustments. The sustainableproduction cycle originating from Junwakei
chicken is also helping to revitalize regional
agriculture.

Sustainable Regional Agricultural and Livestock Cycle through Junwakei Chicken

Traceability for Safety and Reliability
To deliver safe and reliable chicken to consumers, every aspect from receipt of chicks to poultry farming records andmanagement of vaccines and other drugs is conducted under a strict program. This enables traceability by lot back throughthe genealogy to foundation stock.

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Value Provided
Providing chicken meat with consideration for resource recycling,food sustainability and animal welfareFirst Specific Japanese Agricultural Standards (JAS) certification given to a poultry product for sustainability

Introductory video on Specific JAS sustainable chickens and eggs (Only Available in Japanese)

Junwakei chicken Nichirei Fresh (Only Available in Japanese)

Reference：Speciﬁc Japanese Agricultural Standards (JAS) certiﬁcation for sustainability for chicken
meat and eggs (Only Available in Japanese)

Nichirei Integrated Report 2021 Procuring Food through a Sustainable Regional Agricultural andLivestock Cycle Project -Junwakei Chicken-

24Helping to Resolve Social Issues through Our Business

Sustainable Procurement That Contributes to Local
Community Development -Acerola BusinessSocial Issues
Poverty
Educational issues
Agriculture that takes the local environment into consideration
Nutrition and health of local residents
Acerola, which has a strong antioxidant effect, is attracting renewed attention
as a superfood rich in vitamin C. With the spread of the “clean label”
movement to keep foods as additive-free as possible, acerola is being used as
an alternative to synthetic vitamin C, which is an antioxidant. However,acerola fruit is very delicate and after being harvested can only be kept freshfor two to three days at room temperature. Nichirei Foods therefore utilizes
the freezing technology it has cultivated to provide acerola without loss of the
fruit or its vitamin C.
Poverty and educational issues are notable in Brazil, which is our main
production area. Nichirei Foods’ acerola business helps create jobs for local
residents.

Initiatives
A Pioneer in the Acerola Business
Nichirei was one of the first companies to introduce acerola to Japan, with the launch of an acerola drink in 1986. In 1990,
we made a full-scale start into this business of using acerola as a raw material, and in 1991 we established a subsidiary inBrazil, Nichirei do Brasil Agricola Ltda. (“Niagro”), to conduct this business.
Building Relationships of Trust with Contract Farmers
Niagro distributes free seedlings to contract farmers, and its employees
personally provide guidance for stable cultivation and harvesting of highquality fruit. Moreover, Niagro purchases the entire crop, generating stable
income for contract farmers and improving their cultivation skills. Throughthis initiative, Nichirei Foods provides a stable supply of high-quality products
to customers worldwide.

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Contributing to the Region
Niagro provides acerola puree and juice to local residents. Measures tosupport school operations include providing acerola juice once per week toschools attended by children from poor households and repairing school
equipment. Niagro also creates employment through student internships.

Consideration for the Environment
We also conduct eco-friendly initiatives, which we consider the duty of a company that operates a business based onacerola, part of nature’s bounty. We utilize the pomace (the pulpy residue left over from the processing stage) as feed forlivestock, and we are collaborating with Kindai University on the development of Acerolaburi for use as feed for farmed
yellowtail (buri). In addition, water used to wash the fruit and water extracted from the fruit when making concentrated
juice is returned to rivers after microbial treatment.

Value Provided
Creating “clean label” products by providing vitamin C derived fromacerola fruit and contributing to the economy of the production area

In the 2021 sustainability assessment by EcoVadis of France, Niagro received a gold rating, placing in the top 5% of allcompanies assessed.

Nichirei do Brasil Agricola Ltda. ("Niagro") Receives Gold Rating in EcoVadis Sustainability
Assessment (2021)

Nichirei Integrated Report 2021 Sustainable Procurement That Contributes to Local Community
Development -Acerola Business-

26

Environment

Environment
Environmental Management

・
・
・

28

Initiatives for Energy and Climate Change

・
・
・

34

Sustainable Raw Ingredients

・
・
・

57

Initiatives for Water Resource Conservation

・
・
・

62

Initiatives for Biodiversity Conservation

・
・
・

65

Management of Wastewater, Waste Matter, and Chemical Substances

・
・
・

68

Initiatives in Products and Services

・
・
・

72

27

Environmental Management
Basic Philosophy
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 other worksites.
We thus play a part in the environmental impact resulting from the activities of our customers and business 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 Group’s Environmental Policy / Nichirei Group Bio-diversity Policy

Management System
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 three times ayear. The Committee determines the environmental protection strategies and policies of the entire Group based on thecontent and progress of company initiatives, and shares social trends on the environment. The Representative Director andPresident serves as the chairperson of the Group Environmental Protection Committee, with executives and presidents ofoperating companies making up the rest of the Committee membership.

28

Targets
Medium-term Targets and Results■Group’s medium-term environmental plan
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 coefficient

Applicable
worksites
Worksitesin 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 in each
community, the Group engages in water resource conservation throughefficient 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 at worksites
and by company-owned vehicles in Japan. The waste recycling rate continues to be maintained at 99% or higher. Foodplants in Japan are also working to reduce residual animal and plant material. As for the conservation of water resources,
as a food-related corporate group, Nichirei has formulated behavioral targets for using water efficiently and is promoting
efforts toward achieving those targets so that the bounties of nature can be preserved for future generations. The entire
Group is also engaged in collecting environmental data at its overseas worksites.

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

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

29

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. We set a new goal of a 50% reduction by FY2031 (compared with FY2016). In FY2021, we conserved energy byintroducing energy-saving equipment and by improving efficiency. In addition, we utilized Renewable Energy Certificates toexpand our use of renewable energy.

● Nichirei Group CO₂ Emission Trends

Notes:

1. Fixed power emission coefficient: The CO₂ emission intensity unit of 0.412 [t-CO₂/MWh] announced by theFederation of Electric 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 inJapan) and Nichirei 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.

30

Promotion of Sustainable Recycling of Resources
As a material matter for the Nichirei Group, we have set a KPI for and are actively working to reduce the amount of andrecycle the food residue and waste generated by our business activities.

● 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 regular monitoringin compliance with various food safety and environmental protection laws and regulations. At worksites in Japan, positive
steps are being taken to conserve water. Going forward, the Group will examine the availability of necessary water
resources at each regional base and how to assess the impact of risks.

Intiatives for Water Resource Conservation

31

Initiatives
Material Balance
INPUT

OUTPUTISO 14001 Certification, etc.
Number of ISO 14001 and ISO 13485 certification

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.

32

■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 inemployee households

Energy-saving campaigns for employee households have been held from FY2012 toFY2019, 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 go on hikes inforests surrounding company land.

Hands-on training tosupport the Cypripedium
macranthos an endangeredorchid, in the town of
Fujimi, Nagano Prefecture

Nichirei has helped restore the endangered Cypripedium hotei atsumorianum—
Fujimi, Nagano Prefecture's Cypripedium Restoration Conference—since they were
established. The town of Fujimi conducted a hands-on environment-related training
program for Nichirei employees that included activities for the protection of 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.

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.

Status of Environment-related Incidents, Legal Violations

33

Initiatives for Energy and Climate Change
Basic Philosophy
Basic Philosophy
The Nichirei Group formulated the Nichirei Group Environmental Policy with a focus on three priority issues: prevention of
global warming, promotion of sustainable recycling, and living in harmony with nature. Since the Group’s activities span theentire supply chain—food factories, logistics centers, and other worksites—it must play a part in the environmental
initiatives and activities of both customers and business partners. The Group is aware of the substantial impact that climatechange is having on its business, as its support of food-related infrastructure depends on natural ecosystems for raw
materials. Accordingly, the Group and its business partners undertake the following:● Use energy efficiently in the production of food products● Reduce greenhouse gas emissions by using more efficient temperature-controlled storage and transportation● Reduce climate load throughout the supply chain by promoting the use of renewable energy

Nichirei Group Environmental Policy and Nichirei Group Bio-diversity Policy

Environmental management system

Management System
Management System
Environmental management system

34

TCFD Climate Change Initiatives
TCFD Climate Change Initiatives

Climate Change Scenario Establishment andInformation Disclosure

The effects of climate change are becoming increasingly serious and climate change is considered to be acontributing factor in the frequent abnormal weather patterns and natural disasters currently occurring.
Together, these events are impacting the supply chain for food, which is the foundation of the value provided
by the Nichirei Group. We recognize the importance of appropriately responding to risks posed by shifts in theexternal environment caused by climate change. At the same time, we are considering and preparing multiple
scenarios in which climate change could give rise to business opportunities. To this end, we are assessing
climate change scenarios with respect to the four aspects of the recommended framework put forward by the
Task Force on Climate-related Financial Disclosures (TCFD): governance, strategy, risk management, andmetrics and targets. By conducting appropriate disclosures of relevant information, we hope to continuebuilding a constructive dialogue with our stakeholders. It is in line with these ideas and because we support its
recommendations that, in June 2020, we announced our participation in the TCFD Consortium. The Group has
positioned climate change initiatives as one of the material matters for achieving its vision for long-term
management goals toward 2030. As such, we are actively promoting initiatives to help resolve social issues
related to climate change.

GovernanceIn October 2019, we began analyzing climate change scenarios as aninterdepartmental Group project, headed by the president, and arereviewing the scenarios across the Nichirei Group. Following
discussion and review by the Group Environmental Protection
Committee in May 2020, the Board of Directors approved low-carbon
policies as a long-term environmental goal in June and disclosed
them in August of the same year. In October 2020, the director,
executive officer responsible for implementing climate change
strategies was appointed as project head. The project reviewed andanalyzed climate change scenarios in relation to water-related risks
arising from abnormal weather, which, out of the risks identified in
FY2020, would have a particularly significant financial impact on theGroup. Following discussion and review by the Group Environmental Protection Committee in May 2021, the Board of
Directors approved goals (measures and KPIs) for water-related risks as one of the Nichirei Group material measures inJune and disclosed those measures and KPIs in August of the same year. The director, executive officer in charge reports atleast once a year on the progress of the initiatives at Board of Directors meetings. Relevant strategies, goals and plans arerevised as appropriate on the basis of these reports.

35

Strategy
Identification of Material Risks and Opportunities

Worldwide, the Nichirei Group is developing a range of food-centered businesses that it expects will be impacted by climatechange in various ways. We are conducting scenario analyses of how climate change might affect our business activities.
We hope to better quantify the risks and opportunities identified in order to incorporate appropriate responses in ourmanagement strategy. In this way, we aim to become a sustainable corporate group.
We assessed the material risks and opportunities of the Nichirei Group based on two
climate change scenarios, and identified general low-carbon policies (CO₂ emission
reduction) as the most significant area of Group-wide risks and opportunities. We
established long-term CO₂ reduction goals and launched initiatives.

36Selection of water-related risks arising from abnormal weather, which is a risk
common to both the foods and logistics businesses.

Business

Risks

ChickenGeneral abnormal weather※Foods
Business

Difficulty in obtaining raw materials
and production delays due to logistic
network disruptions

Rice

Shrimp

Reduction of agricultural and dairy
production, and steep rise in purchaseprices due to deterioration in quality

Baseline
scenario

Reductions in production efficiency
and volume and submergedaquafarms
Flooding, rising sea levels

Vegetables, marine
products, and meatand poultry products

Submerged agriculture farms,
aquafarms and processing factories
Difficulty in obtaining raw materials
and production delays due to supply
chain disruptions

Low-carbon policies
Common1.5℃
scenario

Baseline
scenarioof emissions
Environmental
countermeasures within the
supply chain

General abnormal weather※

Logistics
1.5℃
scenario

Increased cost for measures forconverting to renewable energy andequipment electrification, elimination

Low-carbon policies

Curtailment of transactions; higher
cost of measures such as themaintenance of global certifications
Damage to refrigerated warehouses
and logistics centers
Difficulty securing human resources indisaster risk areas
Opportunity loss caused by the slow
increase of investment in naturalrefrigerants and the slow adoption oftechnological platforms such as
electrical and low-carbon vehicles

37

Business

Opportunity
Baseline
scenario

Foods
Business

1.5℃
scenario

Changes in weather
patterns

Strengthening ofenvironmental
countermeasures within our
supply chain

Increased demand for frozen and processed foods
Increase demand for ethical products that are compliant with
the SEDEX platform and are created using globally certified
raw materials
Increase demand for the curtailment of food loss within the
supply chain through the development of eco-friendly products
and technological development

Baseline
scenario

Logistics

1.5℃
scenario

Increased environmental
awareness

Develop and expand demand for products created using
sustainable raw materials

General abnormal weather

Increase in sales thanks to customer base expansion achieved
through strengthened disaster countermeasures and resilience

Modal shift

Cost reduction achieved through a modal shift that improvestransportation efficiency

Increased environmental
awareness

Increase in number of business partners due to higher
evaluations as a company that actively discloses information
related to environmental countermeasures

Note: The bioscience business is characteristically resistant to impact from climate change-related events.
Accordingly, we have not currently identified any material factors in our bioscience business based on the
FY2021 Group climate change scenarios.
*

Risks common to both the Foods and Logistics businesses

38

Climate Change Scenarios in Relation to Water-Related Risks Arising from Abnormal Weather①Risk of Future River Flooding
Description

Assessment
criteria

Facilities
to beassessed

The location
criterion is the scaleofrainfall assumed toresult in flooding
according to thehazard maps ofmunicipalities in theregion where thefacility is located.
The assessment isconducted based on
predicted rainfall
amounts.

21
facilities
in Japan（8plants and 13
refrigerated
warehouses）

Facilities located inregions where
hazard maps havebeen prepared
Food factories withlarge production
volumeFacility
selection
criteria

Refrigerated
warehouses(distribution
centers) in areas
with high baseﬂood elevationaccording tocurrent hazard
maps

Results

When creatinghazard maps
for regions
where thefacilities arelocated, threefacilities inJapan were
found inlocations
wherethe number ofrainfall events
exceeding the
anticipatedmaximum
rainfall amount
was expected
to be aroundthe same as
the current
number of
rainfall eventsor potentiallyhigher in
the future.

②Risk of Future Rising Sea Levels (Tidal
Flooding)
Description
For facilities in areas
with either no risk or
unknown risk of
ﬂooding according to
the municipal hazard
map of the region
where they arelocated, anassessment was
conducted of the riskof ﬂooding assuming
the occurrence of atyphoon on the scaleof the Ise Bay
Typhoon, one of themost destructive
typhoons in Japanese
history, and futurerising sea levels (setat 1 meter by theJapan Meteorological
Agency in Climate
Change in Japan2020).

145
facilities inJapan 1
facility
overseas

Results

39 of the 145
facilities were in
ﬂood areas according
to municipal hazard
maps.

③Risk of Future Shortages of Water
Resources
Description

Based on actual
rainfall amounts
during pastdroughts, anassessment was
conducted basedon predicted
rainfall amounts
using annual
rainfall of 700
millimeters as
the criteria.

No facilities
overseas
Based on an Ise Bay
Typhoon-scale
typhoon and rising
sea levels, a
simple calculation
was performed forthe facilities outsideof ﬂood areas
according tomunicipal hazard
maps or in areas forwhich hazard maps
had not been
prepared (106
facilities). As aresult, 27 facilities

21
facilities
in Japan3
facilities
overseas

were found to be in
ﬂood areas whenrising sea levels
were not considered,and 32 when rising
All facilities inJapan, and facilities
where signiﬁcant
ﬁnancial risk anddistance from thecoast wereconsidered(Thailand: Chicken
production facility)

Selected to avoid
overrepresentationof certain regions

39

sea levels associatedwith climate change
were considered.

The 30 facilities
in Japan withthe largest
water intake
quantity andthe facilities
overseas withthe highest
ﬁnancial risk
were selected(Thailand:
Chickenproduction
facility)

Results

Three facilities
were found to be
in areas where thenumber of rainfall
events below anannual rainfall
amount of 700
millimeters was
expected to be thesame as thecurrent number or
potentially higher
in the future.

※ This review

is a simple
assessment
based onexpectedrainfallamounts anddoes notinclude theimpact ofsocialconditions(such aswater
intake). It
also does nottake into
accounttransfers ofwater
betweenwatersheds.
Such factors
areimportant inwater
resource
assessments,
andtherefore
must beincludedwhen
conducting adetailed
assessment.

Financial Impact
We regularly review the financial impact of water-related risks arising from abnormal weather and with respect to ourbusiness continuity plan. (BCP).
The 2018 Japan floods caused some flooding and damage from storm surges at refrigerated warehouses in westernJapan.
In the future, we will work on climate change scenarios for each raw material.

Risk Management
Nichirei is a global operator of food-related businesses. Accordingly, we ensure that appropriate divisions manage theimpact of a variety of risks (including climate change-related risks encountered through business activities) on business
management from a holistic perspective, employing both rational and optimal methods. The risks are also discussed andreviewed by the Group Risk Management Committee, which is chaired by the president. We believe that risks associatedwith climate change scenarios are major and could impact the entire Group. Thus, the Group Environmental Protection
Committee, chaired by the president, reviews both physical and transition risks twice a year, based on information gleaned
from relevant reports and experts’ advice. In addition, at least once a year the director, executive officer supervising
environmental management reports to the Board of Directors. We hope to better quantify the risks and opportunities
identified in order to incorporate appropriate responses in our management strategy. In this way, we aim to become asustainable corporate group.

Indicators and Targets
We have set forth climate change initiatives as one of our material matters and have established the indicators and targets
below for our key initiatives.

〈Group Measures〉

Promote reduction of CO₂ emissions per unit of production and utilization ofrenewable energy at food factories and logistics centers, and disclose information
based on the TCFD recommendations.

〈Group KPI〉

50% reduction in CO₂ emissions (compared with FY2016; Scope 1 and 2 inJapan)＊ In June 2021, the Board of Directors revised the CO₂ emissions reduction target upward from 30%
to 50%.

40

Nichirei Group Materiality

Climate Change Scenarios for FY2020
Climate Change Scenarios for FY2020

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 andopportunities 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

50%

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 incase the power coefficient of the power company is reduced as targeted, theamount 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* In June 2021, the Board of Directors revised the CO₂ emissions reduction target upward from 30% to 50%.
41

Initiatives
Initiatives
The Nichirei Group’s 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 through2030.

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 of longterm CO₂ reduction goals

50% reduction in CO₂ emissions (compared to fiscal
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

Scope3* In June 2021, the Board of Directors revised the CO₂ emissions reduction target upward from 30% to 50%.

42

● Nichirei Group CO₂ Emission Trends*1 Fixed power emission coefficient: The CO₂ emission intensity unit of 0.412 [t-CO₂/MWh] announced by theFederation of Electric 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 inJapan) and Nichirei 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 the greenhouseeffects of CO₂. The gas is produced in their stomachs, released internally when their food is broken down and digested, andthen 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 is turned
into methane gas by methanogen, and released externally through burps. If cattle are given flaxseed oil fatty acidcalcium*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 University’s 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 when conventional 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 thisproduction method to crossbred Wagyu and Holstein cattle (bulls).

43

● Methane Gas Production

Suppression of Methane Gas Emissions by Cattle (Nichirei Fresh) (Only available in Japanese)● 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-linolenicacid (omega-3 fatty acid).
*2 Life cycle assessment (LCA) is the technique of comprehensively analyzing and assessing a product’s
environmental impact throughout its entire life cycle, from the raw materials, manufacture and distribution,
through to disposal.
*3 Omega balance: The balance between omega-6 and omega-3 fatty acids, which are particularly importantessential fatty acids for the human body.
*4 This results from the development of low-cost techniques for cattle production, based on a superior balance ofomega-6 and omega-3 fatty acids, and the subsequently reduced environmental impact. Source: Ibaraki
Prefecture Hitachiomiya Regional Agricultural Research and Promulgation Conference report, 2011.

44

Reducing Plastic Used in Frozen Food Containers and Packaging
Since 2006, Nichirei Foods Inc. has been striving to reduce the amount of plastic used for commercial frozen food productcontainers 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 toreduce even further its discharge of CO₂.

■Past Plastic Reduction Initiatives
Fiscal year

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

45

Switching to Biomass Film and Ink
We use biomass ink on some product packaging such as for our Obento ni Good! series. Biomass ink is made fromrenewable, plant-derived materials, and its use helps reduce environmental impact.

Biomass ink logo

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

46

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

Greening of the Kansai plant

Initiatives in 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, the Group canachieve near-optimum equipment functioning. At the same time, the Group is working to avoid the unnecessary use ofelectricity. The Group has non-regular staff carry out inspections, since they notice energy-saving points that regular staff
may overlook. Energy-saving inspections of the entire center are conducted in parallel with the refrigerant checks as bothcontribute to CO₂ reduction and the prevention of global warming.
Since September 2018, the Nichirei Logistics Group has been conducting a joint demonstration in collaboration with Hitachi,Ltd. at Funabashi DC, utilizing state-of-the-art IoT technology for the early diagnosis of faults in refrigeration equipment
and to improve the efficiency of equipment operations and maintenance. Visualizing energy consumption and analyzing
operational improvements will assist the high-efficiency operation of cold storage facilities and will help reduce CO₂
emissions.

● Conceptual Diagram of Joint Demonstration47

Switching to Natural Refrigerants
The Nichirei Group is adopting natural refrigerants at newly constructed or expanded food factories and refrigerated
warehouses. We are also systematically replacing equipment that uses CFC refrigerants with equipment that uses naturalrefrigerants. By 2030, we will have switched to natural refrigerants for 75% of equipment used by Nichirei Logistics Group(based on tons of equipment excluding leased equipment), including overseas facilities, and 100% of the freezers used at
Nichirei Foods’ domestic food factories and investee factories.

Example of Switch to Refrigeration Equipment Using Natural Refrigerants
FiscalYear

Logistics

Processed Foods

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 ofequipment 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 ofequipment using energy-saving natural refrigerant

FY2018・Nichirei Logistics
TohokuSendai DC 1st Building
・Nichirei Logistics
TohokuMorioka 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
KyushuKagoshima 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 Society

48

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.
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.

49

Change of Fuel Used in Manufacturing Equipment
Switching Boiler Fuels
Manufacturing at the food factories of Nichirei Foods entails a variety of processes, including frying and baking. We aresystematically switching from kerosene and heavy oil to city gas and propane gas, which produce fewer CO₂ emissions, inthe boilers that create the heat energy used in manufacturing.

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 by shippers andlogistics 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 from factories 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 indomestic transportation distances by changing the unloading ports for foreign imports, and will promote a greater use ofrail by reviewing its logistics bases.
The Nichirei Logistics Group believes that contributing to the lives of consumers by shipping food is its most important duty.
Using the best logistical solutions, such as transfer center functions and joint shipping, it is undertaking to provide
consumers with optimal logistical efficiency, while also reducing CO₂ emissions. In addition, to increase shipping efficiency
the Group is reducing the number of trucks it uses. This it can do thanks to increased loading efficiency, the improved
circulation of vehicles, and reduced downtime. The change reflects a softening of delivery requirements (shipping timeslots,
locations), which result in reduced CO₂ emissions.

● 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 fuelmethod.
50

Promoting a modal shift1
Since 2003, in a bid to reduce its environmental footprint, the Nichirei Logistics Group has been switching the means oftransportation it uses from haulage by road to that by rail and sea. And, in 2009, the ferry transportation route from
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

Activities with European Logistics
The Nichirei Logistics Group’s overseas business began with its expansion into the Netherlands in 1988. As of March 2020,
Nichirei Holding Holland B.V. has eight companies—including cold storage facilities and low temperature shipping
businesses—and is expanding from its hub in Rotterdam. Logistics in Europe center on shipping by truck, reflecting theadvanced state of the local infrastructure. During the past few years, a modal shift has been promoted in the interests ofthe environment, resulting in a transition from highway truck transportation to maritime and railway transportation,
making it possible to ship large volumes of goods. Mostly, when a containership docks at Rotterdam, the containers are
offloaded and trucked to a warehouse. With containerships are getting progressively larger, and it is now possible to fit
9,000 forty-foot* containers on the larger vessels. Shipping these by truck would mean using 9,000 trucks, which would
generate large amounts of CO₂.
Holland’s Hiwa Rotterdam Port Cold Stores B.V. uses river barges to reduce its CO₂ emissions when moving containers fromthe 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 havetheir 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 charities—of course with the permission of the consigners—of goods it has had in storage that are past their use-bydate.

* 40 feet = 12.192 meters
51

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 and ecodriving 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 each individual
pride in their work and a sense of social responsibility. The seventh national tournament was held in FY2020 with a view tofurther improve shipping quality.
In addition, Logistics Network began a full-fledged initiative in FY2015 for using pallets in its main shipping operations andestablishing services with fixed arrival and departure times. The downtime at bases and time spent loading were vastly
reduced, which led to an improvement in the work environment of long-haul drivers. In addition, the fact that vehicles
were idle for less time led to their having less of an environmental impact.

Driver contest
Green Management Certification（NK Trans is working to reduce the environmental impact of its business activities to better co-exist with society as atransportation 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 Transpromotes eco-driving and use of the idle-stop system, in addition to the use of low-emission vehicles, and compliance withthe relevant waste disposal laws.
As a result, the Numazu Logistics Center obtained green management certification in January 2012, while the Niiza Office(transportation) obtained it in March 2014. Kyokurei’s main office and logistics centers (in the Tokyo districts of Yamashita,
Daikoku, Atsugi, and Nakai) 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 Ecological Transportation, conducts evaluations, certification, and registration of workplaces that carry out
initiatives above a certain level, as defined in the Green Management Promotion Manual, published by Japan’sFoundation for Promoting Personal Mobility and Ecological Transportation.
52

Driver Advance Reservation System
https://www.nichirei.co.jp/news/2017/298.html(Only Available in Japanese)
At distribution centers, truck arrivals tend to be concentrated at the same times. Being uncertain of what cargo is onboard
further complicates the loading and unloading, and drivers have to wait around for long periods of time, which becomes asocial problem.
To alleviate and eliminate this problem of trucks being on standby, the Nichirei Logistics Group began operating the Driver
Advance Reservation System in October 2017. By using the system, trucks (shipper or shipping company) can reserve theirpreferred time against available loading/unloading times set for each distribution center. Details of the loaded cargo arealso 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 facilitates loading and unloading
operations, which in turn, shortens the hours that each truck is on the road, and ultimately leads to a reduction in CO₂emissions. Starting with the Logistics Network’s Sugito DC and Osaka Futo DC, the system will be gradually rolled out toother distribution centers.

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, of the supply chain
involved in logistics, production, and storage.
Thus, both Nichirei Foods and Hokkaido Foods, one of the former’s 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 companies’ supply chains.
In FY2010, The Nichirei Logistics Group took over control of Hokkaido Foods’ 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 threecompanies. This would cover operational information, sales plans, re-stocking and inventory plans, production plans, andeven shipping plans, aimed at leveling out logistics. FY2012 saw the start of the three companies’ improvement project
begin. In October of 2012, it went into full operation, and improvement activities continue to this day.

53

● Three Companies Collaborate for Cut Costs, Improve Shipping

54

Renewable Energy
Purchase of Green Energy
Since 2007, the Nichirei Group has been purchasing and stockpiling Renewable Energy Certificates (RECs)* every year forthe purpose of promoting the use of renewable energy. As a result, in FY2021, the head office building (Nichirei Higashi
Ginza Bldg.; tenants that are part of the Nichirei Group) shifted to renewable energy, making use of RECs, for all of its
power usage. In addition, since March 2020, Nichirei Foods has purchased 10 GWh worth of RECs per year to cover all
electricity used in production lines for Honkaku-Itame Cha-Han (fried rice). It is also making the shift to renewable energy.

* Green power is power generated from renewable energy sources, such as biomass, solar and wind. The CO₂
emission reductions achieved through the use of power generated from renewable energy are traded in theform of RECs.
Utilizing Electricity Generated from Solar PowerThe Nichirei Group is working to reduce CO₂ emissions by installing solar power generation equipment on the premises offood factories and on the rooftops of refrigerated logistics warehouses.

Solar Power Generation and CO₂ Reduction

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

55

Matsue DC

Sakishima 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 low-emission
vehicles. At its head office building, the Group has a policy of changing room temperatures and lighting levels, and ensuringthat 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 that create
the steam used in its food processing equipment.

Activities of Industry Organizations

As part of its activities to avert climate change, the Nichirei Group is a member of industry organizations, and collaborates
in those organizations’ measures for creating a low-carbon society. Nichirei and Nichirei Foods are full members of theJapan Frozen Food Association, and Nichirei Logistics Group Inc. and the main subsidiaries of the Nichirei Logistics Groupare members of the Japan Association of Refrigerated Warehouses.

Ecology Committee to Run Environmental Conservation
As most of the energy used by Nichirei Biosciences is consumed at the Global Innovation Center (GIC), an R&D andproduction base, the Company organized an Ecology Committee, which mainly comprises members of the center. It
functions as a decision-making body for matters related to environmental conservation, and acts as a pipeline between
employees and the Company, making recommendations and providing feedback on decisions affecting the entire Company.
In fiscal 2020, in addition to energy-saving effects resulting from the installation of cutting-edge environmental apparatus,
such as external window blinds and advanced lighting systems, we circulated a questionnaire among employees toascertain whether they found the workplace environment comfortable.

A ceramic air conditioner grill

Discussion is encouraged at committee meetings56

Sustainable Raw Ingredients
Basic Philosophy
Basic Philosophy
To provide value to society and to continue to survive, it is vitally important for the Nichirei Group to secure a sustainablesource of ingredients. Moreover, given that raw ingredients are harvested from natural ecosystems for its business, theGroup recognizes that it is similarly important for it to address environmental issues in the supply chain—specifically, that it
puts effort into energy use and climate change issues, takes into account water usage and impacts on biodiversity, and thatit 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 (itsbasic CSR policy), the company established the Nichirei Group Sustainable Supply Chain Policy on April 1, 2017.
Nichirei makes efforts not only for its own business activities, but also to address societal and environmental issues in its
supply chain. In proper collaboration with its suppliers and partner companies, Nichirei will work to maintain a sustainablesupply 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, appropriatemanner.

Local communities:
We seek to build close cooperative relationships with local communities, as a good corporate citizen.

57

Management System
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 Group’s 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 moretimes per year, and the results of the discussions are reported to the Board of Directors and the management conference,
providing support for operating companies’ efforts to maintain a sustainable supply chain. The Nichirei Group Sustainable
Supply Chain Policy was also established through the CSR Management discussion meeting. The Group procures products
and services in accordance with the policy and asks suppliers to also assent to and 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 the Group’s 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 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 andresponsible 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 aboutsustainable 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.

Initiatives
Sustainable Procurement in Symbiosis with Nature and Neighborhoods
Mauritanian potted octopi are one of the quality materials used at Nichirei Fresh. For more than 40 years, the company has
been working 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 to develop sustainable fishing practices bycomplying with no-fishing periods and no-fishing standards by, for example, using both Brazilian and Mexican wild shrimp.
In addition to constantly offering a reliable supply of safe and secure foods, Nichirei Fresh Inc. will continue to develop andprocure quality materials as it focuses on sustainable resources, as well as the importance of having a sustainable
environment and society.

58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 StewardshipCouncil (ASC) certification*2 in 2018. From 2020, mangrove planting will begin in earnest, with plans to plant about
280,000 trees.
In addition, we are gradually increasing the handling of marine products certified*3 by the Marine Stewardship Council(MSC) and, June 2019, we have been handling 17 fish species of marine products. In the years ahead, we plan to increase
the variety of sustainable marine products we handle.

*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 thenatural supply.

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

authentication acquisition number

ASC
Certification Registry Number ASC-C01632

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

59

Antibiotic-free Chicken
Antibiotic-free Chicken

https://www.nichireifresh.co.jp/product/livestock/detail/?id=376(Only Available in Japanese)
Chemical agents, such as antibiotics and synthetic
antibacterials, are used in general broiler chicken farming
to treat diseases, prevent the spread of illnesses due tofarming conducted in tight spaces, and promote growth.
Nichirei Fresh has been selling antibiotic-free chicken
since 2004. While vaccinated, our poultry is not exposed
to chemical agents, including antibiotics and synthetic
antibacterials, that could contribute to the emergence ofantibiotic-resistant bacteria.* Instead, our poultry
farming methods take full advantage of the innate
immunocompetence of chickens.
Our farming technology takes into consideration the growing conditions and applies Nichirei Fresh’s proprietary expertise topoultry farming, resulting in chickens with higher natural immunocompetence and greater natural resistance to diseases.
This is achieved through the use of such feed ingredients as lactic acid, other probiotics, and plant-based herbal medicinesthat 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 contributeto the natural cycles intrinsic to ecosystems.

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

60

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 (from thosein feed mills to those in breeding farms and processing factories) are being performed to the Company’s standards.
In addition, the Nichirei Quality Assurance Division’s 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 to final
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

61

Initiatives for Water Resource Conservation
Basic Philosophy
Basic Philosophy
As one factor in achieving its goal of building sustainable supply chains, the Nichirei Group recognizes the importance ofwater resources in producing raw materials and conducting business, and strives to conserve them. In FY2020, the Group
conducted water risk assessments at all of its facilities (152 facilities in Japan and overseas) and identified those facilities
where water risk was high as a result of internal and external factors. In FY2021, interviews were conducted at the threefacilities identified as having high water risk, and the Group confirmed that at this time, there are no water risks fallingunder the categories of quantity, quality or regulatory and reputational risks. In FY2022, investigations were conducted atdomestic facilities with respect to river flooding and storm surge risk due to typhoons and heavy rains.

* WRI Aqueduct: A tool released by the World Resources Institute (WRI), an international environmental NGO, toeasily evaluate the world's water risk from location coordinates or addresses.

Management System
Management System
Regarding water resources used in business, the volumes of water used and wastewater discharged at worksites in Japan
are included in the Group’s 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 forthe fiscal year which is held in May.
Forest conservation activities leading to the preservation of water resources are publicized internally and externally via theGroup’s website and intranet. Hands-on environmental education programs for employees are also conducted at the forests
receiving support, designed to raise employee awareness for the environment. In FY2020, we worked on a water risk
assessment and disclosed the results.

Environmental Management ＞ Management System

Environmental management > Medium-term targets and results

62

Initiatives
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 inJapan, the Group keeps track and manages consumption of water and quality of wastewater through regular monitoring incompliance with various laws and regulations. Forest conservation activities have also been conducted, leading to theconservation 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 Group’s main initiatives.

● Water Usage (By water intake source)

Water Risk Assessment

As one factor in achieving its goal of building sustainable supply chains, the Nichirei Group recognizes the importance ofwater resources in producing raw materials and conducting business, and strives to conserve them.
In FY2020, the Group conducted water risk assessments at all of its facilities (152 facilities in Japan and overseas) andidentified those facilities where water risk was high as a result of internal and external factors. In FY2021, interviews wereconducted at the three facilities identified as having high water risk, and the Group confirmed that at this time, there are
no water risks falling under the categories of quantity, quality or regulatory and reputational risks. In FY2022,
investigations were conducted at domestic facilities with respect to river flooding and storm surge risk due to typhoons andheavy rains.

63

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

Water stress and water intake（FY2020 Survey）
Water stress

Number of bases

Fiscal 2019 water intake [m³ / year]
Surface water

Groundwater

Third party water

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 (20-40%)

54

0458,403

1,491,420

1,949,823

Low – Medium (10-20%)

77

2,400

1,323,084

737,805

2,063,290

Low (<10%)18

123,797

27,736113,657

265,190

Total

Total

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

64Initiatives for Biodiversity Conservation
Basic Philosophy
Basic Philosophy
The Nichirei Group’s Environmental Policy/Nichirei Group Bio-diversity Policy

Management System
Management System
As “living in symbiosis with nature” is one of the three priorities of the Nichirei Group’s Environmental Policy, the Group iscommitted 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, anddisseminates information and conducts activities for biodiversity conservation and environmental awareness raising atworksites and suppliers.
The initiatives are reported by each operating company’s Environmental Protection Committee and by the Group
Environmental Protection Committee, which meets twice a year. The environmental protection policies and strategies of theentire Group are then determined based on the content and progress of these initiatives. Initiatives for biodiversity arecarried out based on the formulated plans.

65

Initiatives
Initiatives
Collaboration with WWF Indonesia and WWF Japan Promoting Biodiversity Conservation in North Kalimantan throughthe 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 number of shrimp farms incoastal 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 Forest of Life
Project in cooperation with its local supplier, PT. Mustika Minanusa Aurora (MMA) and the city of Tarakan, on Tarakan
Island. The project assists in planting efforts and biodiversity conservation, by selling shrimp cultivated traditionally without
using formula feed or electricity, and donating a portion of the proceeds to MMA’s Mangrove Foundation. In partnershipwith WWF Indonesia and WWF Japan, Nichirei Fresh is currently promoting activities improving aquaculture as part of the
WWF North Kalimantan Sea and Forest Conservation Project. Over a 10-year period, trees have been planted across anarea 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 island’s forest has been

North

Shrimp that have

Regeneration oflost over the past 50 years

Kalimantan

grown bigmangrove trees

Please refer to the following website for further details.

Nichirei Fresh Forest of Life Project (Only available in Japanese)66

Fukushima: Environmental Research and Protection, Conserving Biodiversity
Nichirei owns land near Lake Hibara in Fukushima Prefectureʼs Urabandai region. The Company supports research on thenatural 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 plant clusters inmarshlands.
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 virgin nature.
Nichirei has supported the research activities—carried out since FY2012 in the Urabandai area—by 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 bookon Urabandai flora.

Water quality surveys in the Urabandai area wetlands

The Himeshiro dragonfly: a new species

Protecting Endangered Orchids
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 2014, some
artificially propagated orchids of this species flowered and, in FY2020, they
produced 32 blooms. This led to Nichirei entering a biodiversity conservation
partnership agreement with Fujimi-machi, Nagano Prefecture, and the
Fujimi-machi Atsumorisou Regeneration Committee in February 2019. The
Group will provide technologies necessary for the conservation andregeneration of Cypripedium macranthos orchids and cover a portion of thecosts. In June 2021, the Committee began selling artificially propagatedblooms and seedlings, which it hopes will help prevent excessive picking ofwild indigenous species. In our artificial pollination efforts, we avoid mixing
plants from the same lineage as much as possible in order to preserve
genetic diversity.

67

Management of Wastewater, Waste Matter, andChemical Substances
Basic Philosophy
Basic Philosophy
Established as an environmental initiative, the Nichirei Group’s Environmental Policy includes a theme of promoting
sustainable recycling. The Group recognizes that corporate business activities have a considerable impact on the naturalenvironment. Emitting pollutants and using chemicals through business activities has an effect on the air and soil, andexpanding business activities results in more waste being generated and a greater effect on valuable resources. The
Group’s business, in particular, relies heavily on natural ecosystems for the procurement of ingredients. Any loss of theseecosystems would be a significant business risk, and in addition, the generation of food waste is a major challenge.
Recognizing the issues outlined above, the Group is making the best use of limited global resources in cooperation with its
suppliers, partners companies and consumers, and in addition, through its business activities, is promoting reductions ofwaste and pollutants as well as the reuse and recycling of resources. The Group is also helping build recycling-orientedsocial 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 food factories in Japan.

The Nichirei Group’s approach to environmental conservation

Management System
Management System
Environmental management system

68

Initiatives
Initiatives
As a material matter for the Nichirei Group, we have set a KPI for and are actively working to reduce the amount of andrecycle the food residue and waste generated by our business activities.

● Waste Discharged Outside Worksites and Recycling Rate

● Nichirei Group Wastewater and Drainage Load

Promoting Integrated Crop-livestock Production

The food residue and chicken guano received from factories and food material production facilities can be recycled as feed
and fertilizer to reduce waste and make effective use of resources.
The Nichirei Group, which uses feed and fertilizer recycled from food products to produce food, aims to establish a foodcycle 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 systemusing 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 is used
to produce feed stock rice for specialized chicken feed. Rice for the chicken feed is produced by partner farmers in thetowns of Karumai and Hirono in Iwate Prefecture, in cooperation with JA Shiniwate. Much of this rice is grown using ricepaddies lying fallow because of rice production adjustments. The recycling-based production cycle of chickens thus
contributes sustainably to regeneration of the local farming industry.

Project for recycling-based production via chickens
69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 the leftovers into
fertilizer and animal feed. The Group plans to continue reducing the amount of waste generated by setting target values,
while making the most effective use of processing what residue is inevitably produced.
Factory Wastewater Released Only after Having Been Cleaned Using Special Equipment
The water used at food factories becomes wastewater containing food-related organic matter, detergents, anddisinfectants. The Nichirei Group cleans its factory wastewater using disposal equipment and only releases it outside thefactory once it complies with emissions standards stipulated by law.
Management of Pollutant Release and Transfer Register (PRTR) Substances
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 the release into the environment of chemicals, from any source, which could possibly adversely affectthe lives, growth, or development of humans, animals, or plants.

Click here for details

Management of PCBs
Polychlorinated biphenyls (PCBs), a group of man-made compounds, were previously used as insulating oil in transformers,
but their use was banned in the 1970s, after their toxicity became apparent. In Japan, equipment that has been confirmed
to contain PCBs is being appropriately stored in compliance with standards set by law. Currently, disposal is being carriedout systematically, based on the capacity of the nation’s five government-run PCB disposal plants. Three transformers
collected from the Nichirei Group in FY2020 and FY2021 have been disposed of at a one of the government 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 havebeen 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.

70

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 FY2021, 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 andaiming for an overall reduction in emissions volume. The Nichirei Logistics Group is promoting increased logistical efficiency
through joint shipping and modal shifts making use of railways and ferries. The Group is making progress on the reductionof 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 no emissions from the Nichirei Group’sbusiness corresponding to the volatile organic compound (VOC) emission standards.

SOx Emissions

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 mostdestructive 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 the CO₂ ofthe 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 whenbuilding new cold storage facilities or when extending existing facilities. It is also promoting a switch from freezing facilities
that use CFCs to freezing facilities that use natural refrigerants for all its other existing facilities.

Use of natural refrigerants

71

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

Management System
Management System
Environmental management system

72

Initiatives
Initiatives
Reevaluating Packaging and Containers

Nichirei Foods has been able to reduce waste by reevaluating its packaging and containers. With some products, doing
away with trays ultimately made it easier to store the product. This consequently led to both a reduction in petroleumderived 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 (Only Available in Japanese)

Reducing plastics in containers and packaging

Forest of Life Project (Only Available in Japanese)73

Society

Society
Food and Health: Creating New Value

・
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・

75

Maintain a Sustainable Supply Chain

・
・
・

86

Human Rights

・
・
・

92

Provide Safe Products and Services

・
・
・

96

Occupational Health and Safety / Health Management

・
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・

111

Improving Work Satisfaction

・
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121

Human Asset Cultivation and Diversity

・
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128

74

Food and Health: Creating New Value
Basic Philosophy
Basic Philosophy
Changes are occurring under the new normal, including diversification of consumer needs and personalization of food andmedicine. Leveraging the accumulated strengths and functions of the Nichirei Group, we will continue to provide new valuethat addresses the changing market environment and helps resolve social issues.

Initiatives
Initiatives That Promote Health
Nichirei Foods’ Initiatives

Nichirei Foods does not only pursue great taste, but also sells health management foods through its official online shop that
carefully monitor the intake amount of calories, sugar, salt, fat, protein, and so on for those who are on diets, trying tocontrol their caloric intake, or affected by diabetes. It is working on modifying its website with guidance from national
registered dieticians so that customers are able to choose menu items according to their health needs.
In addition, it is selling organic frozen health products as part of the Genkibatake-no-Organic series that use organic
ingredients raised on farms without the use of chemically synthesized pesticides or fertilizer.
Initiatives at Nichirei Fresh

At Nichirei Fresh, emphasis is placed on the feed and livestock environment in meat production. With most chickens thatare reared for meat, antibiotics, synthetic antibacterial agents, and other chemicals are used to treat illnesses as well as toprevent disease in factory farm conditions and promote growth. However, with Nichirei Fresh’s FA Chicken, while vaccines
are used, no antibiotics or synthetic antibacterial agents are used at all throughout the entirety of the rearing process. To
pay attention to the rearing environment and boost the chickens’ natural immunity and raise their resistance to disease, afeeding method is employed that utilizes lactic acid bacteria and other attenuated vaccines and plant-based natural
medicines (such as traditional Chinese medicine).
In addition, to address the issue of people not getting sufficient omega-3 fatty acids from current dietary habits, Nichirei
Fresh developed the Omega Balance meat series using special feed and original rearing methods to allow a higher intakeof omega-3 fatty acids than typical meat.
Nichirei Fresh places emphasis on its feed and livestock rearing methods, and it strives to help make the livestock industry
better for people, the animals, and the environment.

75

Nichirei Biosciences’ Initiatives
At Nichirei Biosciences, an information website is managed under the supervision of doctors with the objective of providing
the latest immunostaining-related information to those engaged in pathological examinations at hospitals and such, as wellas those at universities and research institutions involved in pathological research for basic and clinical 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/ (Only Available in Japanese)
Nichirei Fresh produces and sells meat, and has been focusing on omega-3 fatty acids, which are essential for humanhealth. We have improved the balance of omega-3 and omega-6 fatty acids in our meat by giving chickens, pigs andcattle* a formula feed that uses ingredients derived from flax, which is rich in α-linolenic acid. This results in tender andjuicy meat, which we have been selling since 2006. Omega-3 fatty acids, abundant in blue-backed fish, flaxseed oil andperilla oil, are converted into eicosapentaenoic acid (EPA) and docosahexaenoic acid (DHA) in the body. However, the dietof people in Japan today is often lacking in essential fatty acids, which the body cannot synthesize, especially omega-3
fatty acids. By promoting everyday diets that include meat containing a balance of these fatty acids, Nichirei Fresh supports
people’s health.
*There are individual differences among cattle.

Meat Analogue Containing No Animal Meat:
Daiz Meat

Nichirei Foods is developing meat analogue products as a new undertaking in frozen foods that will contribute to a moresustainable society. We reproduce the flavor and characteristics of meat without using animal meat by combining various
kinds of soy meat, including that from germinated soybeans grown using the proprietary technology of DAIZ, which isengaged in advanced research on soybeans. Moreover, through the application of our know-how and technology forreproducing delicious flavors, we have developed products that are both healthy and tasty.

76

Possibilities of New Effects of Acerola
https://www.nichirei.co.jp/news/2021/382.html
In research into the body’s high rate of absorption of vitamin C from acerola, Nichirei Foods analyzed the effects of acerola
powder and acerola juice on gut microbiota. Our analysis showed that when human gut microbiota were supplied withacerola powder or acerola juice, there was an increase not only in beneficial enteric bacteria such as Lactobacillus bifidus
but also metabolites such as acetic acid and butyric acid, which are known to be good for the body. We will delve deeper
into these results and conduct even more sophisticated research. With this, we expect to be able to further clarify
mechanisms and utilize the results in new research and development and product development. Food enriches people’s
lives and by approaching food from a scientific perspective, we aim to realize a healthier society.

Health through Nutrition
Composition-Controlled Foods

https://wellness.nichirei.co.jp/shop/default.aspx (Only Available in Japanese)
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

77Companion Diagnostics
Provision of diagnostics for personalized cancer treatments
https://www.nichirei.co.jp/news/2018/321.html (Only Available in Japanese)
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 physical condition andpathology.
Furthermore, immune system-related technologies that we have developed so far are contributing to the advancement of
personalized medicine that enables the selection of treatments and drugs that are highly effective and have few side
effects.

Histofine ALK iAEP® Kit

Innovation
Needs relating to good eating habits have been growing and diversifying among customers and within society at large. In
the drive to further strengthen its core competencies and proactively resolve social issues, Nichirei will leverage its
production technologies and expertise, while drawing on new developments including those in AI, IoT, autonomous driving,
and robotics.

* Artificial Intelligence (AI) is the use of computers to artificially realize the workings of human intelligence.
Specifically, AI refers to computer programs that can understand natural human language, perform logicalreasoning, and learn from experience.

78

Strengthening Food Processing and Production Technology Capabilities;
Enhancing Logistics Services
Harnessing AI to Automate and Optimize Production and Personnel Planninghttps://www.nichireifoods.co.jp/news/2020/info_id8338/ (Only Available in Japanese)
Nichirei Foods has collaborated with Hitachi, Ltd. increating a system that uses AI to automate and optimize
production and personnel planning. In FY2021, thesystem was introduced at two model factories in Japan. It
uses sophisticated AI technology to reproduce and refineplans previously formulated by experts based on complex
constraints. In addition to legal and regulatory
requirements involved in personnel planning, a variety ofother conditions must also be considered, including
individual ability, overtime, and paid leave. Until now,experts formulated plans based on such preconditions,
often relying on experience-based intuition. The new
system uses AI to automate planning and identify optimal solutions from among the various permutations, while also
quantifying and incorporating intuition-based criteria. As a result, planning requires one-tenth of the time and can be
conducted by non-expert employees. The system is expected to contribute to work style reforms such as by reducing thenumber of hours worked and encouraging more employees to use paid leave. Given that in recent years food
manufacturers have been called upon to make and supply products while responding to fluctuations in demand, the system
is contributing to improved customer satisfaction due to its application of advanced digital technologies and the creation ofefficient production systems. Nichirei Foods will continue to harness digital technologies to promote further improvements
in productivity, reductions in lead time and inventories, as well as work style reforms.

●Production Planning Formulation Image

From a maximum of 16 trillion combinations in one factory, production plans encompassing daily production products and volumes for each line
and personnel plans involving shift schedules are formulated automatically.

79

Food Waste Reduction
https://www.nichireifoods.co.jp/news/2018/info_id5715/ (Only Available in Japanese)
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 arebones, feathers and bloodstains. Due to its ability to locate such impurities with pinpoint accuracy, AI-powered 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.

Expiration Date Reader for Tablet Inspections*
https://www.nichirei-logi.co.jp/news/2020/20200713.html (Only Available in Japanese)
Following field tests, Nichirei Logistics Group began introducing an AI
solution for automatically reading expiration dates from image data
at 50 bases nationwide in FY2021. As part of its efforts to fully
digitize warehouse operations, the Group is adopting tablet devices
and AI solutions to expand functionality. Previously performed
manually, expiration date input can now be completed using AI,
enabling highly accurate readings of 93% or higher and fast
processing speeds of about two seconds. This has led to improved
quality control enabling anyone to capture expiration date images,
simplifying overall operations, and facilitating stress-free work.

* Automated expiration date reader AI solution: AI-OCR (Optical Character Recognition/Reader) recognizes
images using image preprocessing technology to identify the characters of the expiration date from the image
and match the recognized expiration date with information in the cloud, to enable more accurate readings.

80

Autonomous Driving Forklifts
Nichirei Logistics Group began conducting field tests ofautonomous driving forklifts at refrigerated warehousesin January 2018. In 2021, they were introduced at the
Daikoku Distribution Center of Group company Kyokurei.
A distinctive characteristic of autonomous driving
forklifts is that they can be given instructions using atablet device, thereby making safe use possible for
employees who might otherwise lack the physicalstrength or operating skills to manually operate aforklift. Going forward, we will steadily increase thenumber of facilities with autonomous driving forklifts
and tie that into reducing working hours, economizing
on manpower for on-site work, and improving

An autonomous driving forklift at the Daikoku DC

occupational health and safety at our warehouses.

Automated Guided Vehicles (AGVs)
In 2021, Nichirei Logistics Group introduced automatedguided vehicles (AGVs) for transporting pallets supplied by
Phoxter Corporation (Headquarters: Toyonaka City, Osaka;
President & CEO: Junichi Sonoda), which develops image
processing technology and automated guided vehicles, atthe Sendai Distribution Center of Nichirei Logistics Tohoku.
AGVs for transporting roll pallets have also been introduced
at five transfer centers. The Group is focused on process
innovation to address labor shortages, reduce the load on
workers, and change on-site work so that anyone can do it.
We will continue to work on building an optimal labor
environment and system leveraging the characteristics of

AGV for transporting roll pallets

AGV for transporting pallets

both humans and machines.

Truck Loading Dock Reservation System
https://www.nichirei.co.jp/news/2017/298.html (Only Available in Japanese)
At distribution centers, truck deliveries are concentrated
at certain times, and without knowing each truck’s cargo,smooth loading and unloading can be difficult, which has
led to long wait times for truck drivers becoming a social
issue. Aiming to alleviate and eliminate the problem oftrucks having to wait, in October 2017 Nichirei Logistics
Group began operating a truck reservation system. As of
FY2021, the system has been introduced at 30 facilities
nationwide. The system allows truck operators (theshipper or shipping company) to reserve a desired time
for loading or unloading trucks, in line with the loading
and unloading time slot framework at each distribution
center. It also improves efficiency with regard to post-arrival administrative procedures by enabling truck operators to
inform distribution centers of cargo details ahead of time. The introduction of the system has led to reductions in the timerequired for unloading and loading, truck operations, and truck exhaust gas emissions (CO₂ reductions).
81

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 predict refrigerationequipment 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.

TOPICSTechnology for Personalized Flavor

https://www.nichirei.co.jp/newbiz/biz002/ (Only Available in Japanese)

We are developing a program that gives flavor recommendations to make people’s selection of food moreenjoyable. The associated service will commence in 2020.
The program uses the Nichirei Group’s 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 that has
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.

82

Initiatives for Innovation
Antibiotic-free Chicken

https://www.nichireifresh.co.jp/product/livestock/detail/?id=376(Only Available in Japanese)
Chemical agents, such as antibiotics and synthetic
antibacterials, are used in general broiler chicken farming
to treat diseases, prevent the spread of illnesses due tofarming conducted in tight spaces, and generate growth.
Nichirei Fresh Inc. has been selling antibiotic-free chicken
since 2004. While vaccinated, our poultry is not exposed
to chemical agents, including antibiotics and synthetic
antibacterials, that could generate antibiotic‐resistantbacteria.* Instead, our poultry farming methods take fulladvantage of the innate immunocompetence of chickens.
Our farming technology takes into consideration the rearing environment and also applies its own expertise to poultry
farming, thereby raising the natural immunocompetence of chickens and developing their natural resistance to diseases
through the use of such substances as lactic acid, other probiotics, and plant-based herbal medicines that help maintain thehealth 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.

83●Antibiotic‐resistant Bacteria That Threaten Ecosystem Cycles* Drug-resistant bacteria: Protecting people fromdrug-resistant bacteria (not affected by
antibacterial agents) is becoming an issue
worldwide. Those with weakened
immunocompetence who are exposed to suchbacteria may not respond to treatment with
antibiotics.
Drug-resistant bacteria have been found inlivestock continuously exposed to chemical
agents such as antibiotics and synthetic
antibacterials. As a result of growing consumer
interest in the United States, meat from animals
not exposed to antibiotics is becoming
increasingly popular.
We will continue to assess the issue of drugresistant bacteria as we produce chicken thathelps maintain human health.

Reducing Methane Emissions in Beef Cattle Farming
Addition of Key Omega (Flaxseed Oil Fatty Acid Calcium) to Feed
Ruminants such as cattle and sheep have four stomach chambers. In the process of breaking down and digesting feed,
microbes in the rumen (first chamber) produce hydrogen and carbon dioxide. Microorganisms called methanogens turnthese gases into methane, which is released when the animal burps. Methane is said to have 21 times the greenhouseeffect of CO₂, and around 16% of all methane produced around the world comes from ruminants. Cattle account forroughly 70% of this total and are considered a factor in the acceleration of global warming. Research has shown that
including a certain portion of flaxseed oil fatty acid calcium (feed raw material processed from flaxseed oil) in beef cattle
feed improves the efficiency of weight gain, reducing the fattening period, which in turn leads to a reduction of methane
emissions. In 2009, with the aim of putting this technique to practical use, Nichirei Fresh conducted a series of fattening
trials with the cooperation of domestic beef cattle farmers, JA (Japan Agricultural Cooperatives) and animal research
centers in each region and established optimal fattening programs for each breed of beef cattle. Unsaturated fatty acids,
which are abundant in flaxseed oil, combine with hydrogen in the rumen to suppress methane emissions. The process also
prevents energy loss, which translates into a reduction of feed costs due to a reduced fattening period and increased
shipping weights, bringing an economic benefit to livestock farmers.

Suppression of Methane Gas Emissions by Cattle (Nichirei Fresh)84

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 (from thosein feed mills to those in breeding farms and processing factories) are being performed to the Company’s standards.
In addition, the Nichirei Quality Assurance Division’s 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 to final
product shipments.
●Quality Control: Antibiotic-free Chicken

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

Food Shortage Response Initiatives
Joint Research and Development Associated with Germinated Soybeans
https://www.nichireifoods.co.jp/news/2020/info_id8335/ (Only Available in Japanese)
Recently, the search for alternatives to animal proteins has been receiving a large amount of attention due to a variety offactors, including the increasing world population, food issues caused by more frequent patterns of inclement weather, theneed for measures to reduce environmental impact through better food production efficiency, and higher awarenessregarding food diversity and health. In January 2020, Nichirei Foods invested in DAIZ Inc., a frontrunner in the search foralternative proteins that is conducting advanced research regarding soybeans.
The germinated soybeans that DAIZ Inc. owns and researches are delicious and nutritious and have the potential to resolve
existing issues related to vegetable proteins, including peculiar flavors and unsatisfactory textures. Moving forward, we willconduct joint research and development aimed at creating new value along with DAIZ Inc.

Food Allergies
There are 27 foods listed as allergy triggers in Japan. Of these, the Consumer Affairs Agency requires that seven (shrimp,
crab, wheat, buckwheat, eggs, milk, peanuts) be displayed on packaging due to the frequency and seriousness of theallergic 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 nation’s food labelinglaws. We have made every effort to itemize the food allergens contained in frozen foods for home use that are handled by
Nichirei Foods.

Provide Safe Products and Services
85

Maintain a Sustainable Supply Chain
Basic Philosophy
Basic Philosophy
We recognize that the sustainable procurement of resources is extremely important for the Nichirei Group to continue toprovide value to society. In addition, we recognize that, when conducting global business activities, it is important to workwith stakeholders in our supply chain to respect the environment and human rights. In the years to come, we will continue
to contribute to the realization of a sustainable society through efforts to resolve social issues along our supply chain.

Nichirei Group Sustainable Supply Chain Policy
The Nichirei Group is committed to building a sustainable supply chain. The Group procures products and services
in accordance with the following policy and asks suppliers to agree and comply with this policy.
Legal compliance: We comply with the laws and social norms of each country and region where we operate.
Fair business practices: We employ fair, transparent, and impartial business practices.
Human rights: We respect human rights and provide safe, healthy work environments.
Environment: We strive to reduce environmental impact and consider the health of the global environment.
Product quality and safety: We work hard to deliver safe, high-quality products and services.
Information management: We manage information properly and disclose information related to our 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）

Japanese Chinese Vietnamese Thai

Human Rights Initiatives

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

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

Quality assurance (number of audits, certifications, and training hours)

CSR Management Discussion Meetings

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

The Group established a Group Supply Chain Committee in FY2021 to discuss the risks and opportunities related to social
issues and human rights throughout the supply chain. This Group Supply Chain Committee also serves as an advisorycommittee to the Board of Directors and is chaired by the President and CEO.
Inaugural Supply Chain Meeting to Promote CSR Procurement

Since 2019, in accordance with the OECD Guidelines for Multinational Enterprises and the United Nations Global Compact,
the Nichirei Group has been promoting the understanding of, and working toward attaining, the Nichirei Group Sustainable
Supply Chain Policy and ensuring that our supply chain business partners are in step with the Group’s CSR procurement
activities. In FY2021 (ending in March 2021), we launched a Supply Chain Meeting to enable Group companies toparticipate in formulating 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 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.
87Initiatives
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 discussedwith 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 thatdelved into human rights issues. The result shall be considered in our human rights activities and we will continue toengage 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.

2020 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.
Certified Sustainable Palm Oil (RSPO Oil Credits)

Palm oil from the fruit of the oil palm is used as a raw material in such products as cooking oil, soap and detergent. In
recent years, the ongoing large-scale development of oil palm plantations has led to environmental issues, including
deforestation of tropical rain forests and CO₂ emissions from peat areas, as well as forced labor and child labor among
plantation workers, which are global issues. In August 2018, the Group became a member of the non-profit organization
Roundtable on Sustainable Palm Oil (RSPO), which promotes the production and use of sustainable palm oil. We areadvancing efforts to ensure that the palm oil used to make our products is sustainable. This includes calculating the total
amount of palm oil used as frying oil at Nichirei Foods’ factories (at consolidated subsidiaries in Japan and overseas), andpurchasing a corresponding amount of RSPO oil credits (via the book and claim method).

4-1055-18-100-00
Membership profile pagehttps://rspo.org/members/7750

88

Questionnaire Survey and Progress with Major Suppliers
To work on building sustainable supply chains, the Nichirei Group undertakes the procurement of products and services inaccordance with its policy and encourages its suppliers to understand the policy and put it into practice.
FY2018

Nichirei
Foods

Nichirei Fresh

SharedNichireiGroup
Sustainable
Supply Chain
Policy with
important
suppliers inJapan andoverseas,
conducted
surveys in aquestionnaire
format

FY2019Analyzed
questionnaire
content
Collected allquestionnaires

Visited some
suppliers andexchanged
opinions

FY2020

FY2021

FY2022・Join Sedex

Conducted
SMETA audits
at twodomestic
factories

Conducted
SMETA audits
at allremaining 13
domestic
factories

・Startedcreating
Supplier CSR
Guidelines

Conducted aquestionnaire
based on CSR
guidelines todomestic
suppliers

Ongoingcollection ofquestionnaires

Continuationof analysis ofquestionnaire
contents

A new list of
domestic andinternational
suppliers is
being
compiled

A CSR
questionnaire
is being
prepared

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

Promoting CSR Procurement: Sedex Membership and SMETA
https://www.nichirei.co.jp/sustainability/social/supplychain/supply.html(Only available in Japanese)
Since FY2020, we have been promoting understanding of the Nichirei Group Sustainable Supply Chain Policy and our CSR
procurement activities among business partners. In FY2021, we launched our Group Supply Chain Meeting, where we
discuss shared issues in addressing human rights due diligence. In FY2022, we launched the Group Supply Chain
Committee. In addition, Nichirei Foods joined Sedex1 in July 2019. We established the Nichirei Foods Supplier CSR
Guidelines in October 2020 and disclosed them in five languages. In FY2022, we began implementing SMETA2 audits at ourdomestic food factories.
Notes:

1. Supplier Ethical Data Exchange (Sedex): 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.
2. Sedex Members Ethical Trade Audit (SMETA): An audit methodology developed by the Sedex Stakeholder
Forum, whose members consist of brand-owners, companies, and audit firms, by consolidating best practices
related to ethical audits.

89ASC/MSC-certified Products
Aquaculture Stewardship Council, Marine Stewardship Council Certification

Since 2006, Nichirei Fresh has engaged in Inochi-no-Mori Project1 nature conservation activities involving sustainable giant
tiger prawn farming and mangrove tree planting in Kalimantan, Indonesia. These activities were extended to whitelegshrimp ponds in Sumatra, Indonesia, and obtained Aquaculture Stewardship Council (ASC) certification2 in 2018. Since
2020, we have planted about 280,000 mangroves. In addition, we are gradually increasing the number of marine products
we handle that have obtained Marine Stewardship Council (MSC) certification.3 As of June 2020, we had obtained MSC
certification for products of 17 species. We will continue to expand our lineup of MSC-certified processed marine products.
Notes:

1. Inochi-no-Mori Project: https://www.nichireifresh.co.jp/inochinomori/(Only Available in Japanese)
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 thenatural supply.

■Nichirei Fresh Products That Have Obtained MSC/ASC Certification
Certification

MSC/ASC Certification

ASC Certification Number ASC-C01632

Giant tiger prawn, whiteleg shrimp, Pacific cupped oyster, Atlantic salmon, coho
salmon, rainbow trout salmon, rainbow trout

MSC Certification Number MSC-C52165

Chinook salmon, silver salmon, pink salmon, chum salmon, sockeye-red salmon,
Pacific cod, northern rock sole, yellowfin sole, English sole, walleye pollock,arrowtooth flounder, great Atlantic scallop, silver smelt, snow crab, herring, arctic
surf clam, red king crab, longfin inshore squid, Pacific oyster

Shio Sujiko (salted sujiko), processed roe from MSC-certified Alaskan sockeye-red salmon

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

90

Sustainable Ingredient Procurement
Sustainable Regional Agricultural and Livestock Cycle through Junwakei Chicken

Over the 12 years since launching a feed rice project in collaboration with the JA cooperative in Iwate Prefecture andfarmers from Karumai and Hirono in 2009, Nichirei Fresh has been implementing a sustainable regional agricultural andlivestock cycle through the production of the Junwakei breed of chicken (a crossbreed of two native Japanese species).
When the project was first launched, paddies for feed rice covered around 15 hectares. By FY2021, this area had expanded
to around 200 hectares yielding a harvest of roughly 1,600 tons. Manure from the poultry farm is made into organic
fertilizer at an on-site high-speed chicken manure processing plant. This fertilizer is spread over the feed rice paddies,
providing nutrients for the soil, where previously they were resting rice fields. Rice harvested from these paddies is fed to
Junwakei chickens as formula feed. Moreover, waste heat energy from the manure processing plant is used to heat thechicken coops.

High-speed chicken

Chicken manure mademanure processing plant

into organic fertilizer

91

Human Rights
Basic Philosophy
Basic Philosophy
The Nichirei Group believes that respecting the human rights not only of the Group’s employees, but also all stakeholders
involved in its businesses, including supply chains, is significant and absolutely essential.
In order to build a sustainable supply chain, the Group established the Nichirei Group Sustainable Supply Chain Policy inApril 2017. The Group procures products and services in accordance with the following Policy and asks suppliers to assent
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 andpeople with disabilities is forbidden.

Human Rights Policy
Code of Conduct

Recognizing that our business processes may have direct or indirect effects 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 respect the human rights ofall stakeholders of our business.

1. Scope

The policy is applicable to all employees and officers of the Nichirei Group. We will also requirebusiness partners to support the policy and work towards ensuring respect for human 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 thefollowing 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 Organization’s 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 of Issues
Related to Human
RightsThe Nichirei Group will establish a system of human rights due diligence to identify, prevent andmitigate 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 human rights
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 humanrights experts in implementing this policy and engage in earnest dialogue and consultation withstakeholders who may be affected by our business.
The Nichirei Group will specifically assign officers with responsibility in implementing the policy
and monitor implementation of this policy.
The Nichirei Group will appropriately conduct education and training to ensure that this policy 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 in which
we conduct our business activities. Where there is a conflict between national laws/regulations
and internationally recognized human rights standards, the Nichirei Group will seek ways torespect international human rights to the maximum extent possible.
92English

Human Rights Initiatives

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

Initiatives
External Communications
Participation in Stakeholder Engagement Program

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 thefood 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.

2020 Human Rights Due Diligence Workshop

Also, we participate in the Business and Human Rights Conference (organized by the Japanese Committee of the CRT),
which is attended by NPO/NGOs and human rights experts from Japan and abroad.

Business and Human Rights Conference93Initiatives for Human Rights of Employees
The Nichirei Group is aware that, when it comes to operating a global business, respecting the human rights not only of theGroup’s employees, but also all stakeholders involved in its businesses is absolutely essential, and that this philosophy
applies to all people and companies. Based on this way of thinking, the Group has referenced both the “ILO Declaration on
Fundamental Principles and Rights at Work”＊1 and the “UN Guiding Principles on Business and Human Rights”＊2, among
other international human rights standards, and sets forth the Group’s Code of Conduct as follows. The Nichirei Group
respects human rights and does not discriminate at all based on race, skin color, gender, religion, political views, nationality,
social status, background, or any other factor. The Nichirei Group rejects all forms of forced labor and child labor.
Furthermore, discriminatory behavior, violent behavior, sexual harassment, power harassment, and other such behavior isforbidden, and regulatory standards are adhered to with regards to wages (including legal allowances) and working hours.
In fiscal 2017 (FY18/3), the Group established “The Nichirei Group Workplace Improvement Policy” based on the Nichirei
Pledge and aims to achieve its goals by FY22/3. In addition to each Group company promoting efforts that address theirindividual issues, Nichirei also facilitate exchanges of information and confirms each other’s progress through the Groupwide Group Human Assets Committee and Diversity Promotion Conference.

＊1 All member nations pledge to respect, promote, and realize the obligation to eliminate discrimination in hiringand employment, implement effective abolition of child labor, forbid forced labor, and effectively approve
freedom of association and the right of collective bargaining.
＊2 Established by the Special Representative of the Secretary-General John Ruggie with the objective of
enforcing the “Protect, Respect and Remedy” framework established to strengthen the standards andcustoms related to multinational firms’ businesses and human rights.
labor–management relations

In order to support the sound development of the Nichirei Group, the Nichirei Labor Union strives to ensure that theindividual rights of every union member are respected. This is based on the principle of equality among members of laborand management, as well as the union’s vision of a workplace environment with mutual incentives to work.
The union considers labor–management negotiations to be important. It thus narrows down the demands of its members
and pushes for workplace improvements, all the while maintaining a productive relationship with management.

Labor union activities; labor-management cooperation

94

Internal Whistleblower Hotline and Consultation Service
In October 2003, the Company introduced an internal reporting and consultation hotline. This allows employees to report,
or seek advice on, actions that violate laws or company regulations, or that are ethically questionable.
In FY2016, the Company updated its internal whistleblower hotline system in response to the requirements of Japan’s new
Corporate Governance Code, which speciﬁes that internal whistleblower hotline systems are to be independent from acompany’s management. To ensure that all employees are aware of the new hotline, the Company created and distributed
promotional posters for its workplaces and reminder cards for employees.In accordance with Company policy, all reports
received are relayed to top management by the administration ofﬁce, which also conducts an investigation to conﬁrm thefacts, implements corrective measures and provides feedback to the person who made the report (when not reported
anonymously).
Anonymity is preserved to protect the identity of the person reporting, while the process is carefully managed to ensure
there is no retaliation against or adverse treatment of the person reporting by those who are the subject of complaints.

Number of whistleblower reports and consultations regarding human rights issues

Number of Whistleblowing Cases, by Type

Compliancee-learning

95

Provide Safe Products and Services
Basic Philosophy
Basic Philosophy
The Nichirei Group’s fundamental policy on quality assurance is to ensure the quality and safety of the food products andservices it provides, so that they are safe for consumers. At the same time, we are maintaining and improving Group-widelevels of quality control, quality assurance and customer satisfaction. We aim for further enhancements by implementing
the PDCA cycle in our quality management system and food safety management system and encouraging improvements
when deficiencies are found through internal audits and quality audits at factories.

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 theGroup’s 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 theirconcerns.
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 theinformation that customers need in an easy to understand manner.
Nichirei Foods employs various packaging strategies to help customers choose us from among the countless other brandsof frozen food. In general, the following way of thinking is applied to all product packaging that receives the N mark.

96

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 for serving.
3. Conveying products flavor
The Nichirei Group consults designers about how packaging can best convey a product’s flavor.
4. Contact information for customer inquiries
The Nichirei Group displays contact information for collecting various types of information from customers.
5. Meeting industry standards
In addition to accreditation marks, the Nichirei Group displays the information required for packaging to be sorted
for appropriate disposal or recycling.

Management System
Management System
The Nichirei Group Quality Assurance System

The Nichirei Group Quality Assurance System Diagram97

● Product Quality Assurance

The Nichirei Group offers a variety of products and services. Each operating company has established rules and standards
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 Group’s systematic preventative approach to food safety emphasizes the biological, chemical, and physicalhazards in production processes and the need for a quality management system. This philosophy generally applies to allfood 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 to healthhazards. 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

98

Building of Quality Control System through Proactive Introduction of International Standards
https://www.nichirei.co.jp/sites/default/files/inline-images/csr/esg/pdf/esg_13.pdf
The Nichirei Group offers a variety of products and services that possess distinguishing characteristics. In addition to theoperation of internal rules and regulations that match those characteristics, we are actively promoting the acquisition ofinternational standard certifications while working to strengthen our quality control system and provide safe products andservices.

Certification Status

Quality assurance (number of audits, certifications, and training hours)

Food Defense Initiatives
https://www.nichirei.co.jp/english/safety/system.html
The Nichirei Group emphasizes people management
to protect food. In areas where food is handled, in
addition to restricting access to authorizedindividuals, we have made it possible to determine
the when, who and where of such individuals at all
times. In-house operation rules covering visitorsand contractors, as well as self-checks are in place
and audits of our plants are conducted regularly toconfirm safety. We are also working to improve theworkplace environment based on employee
satisfaction surveys and interviews. We haveinstalled cameras and face recognition systems at
all of our plants in Japan and overseas. To protect food we have created a system that is based on the distinguishing
characteristics of each product and enables follow-up investigations should issues arise. If an issue does occur, a link isestablished with our food crisis management system, which facilitates the dissemination of accurate information and quick
responses.

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(Only Available inJapanese)
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 safe anduseful medical devices and in vitro diagnostics.

99

● Overview of ISO 13485

Safe Workplaces, Better Service
https://www.nichirei-logi.co.jp/company/csr.html (Only available in Japanese)
Nichirei Logistics Group sets themes four times a year designed to prioritize safety and quality at warehouses. Accident
prevention activities are conducted under these themes at all domestic facilities (114 locations).

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

100Service Quality Assurance
Nichirei Logistics Group’s 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 Group’s know-how and technology
have allowed it to realize advanced logistics quality. When it comes to a logistics network, the approximately 4,000 trucks,
including the Nichirei Group’s own, that provide transportation and delivery all over the country every day, are thebackbone 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 anda 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 of suchindividuals at all times. It has created a system to protect its food that is based on the distinctive characteristics of eachproduct, and which allows follow-up investigations to be conducted should problems arise. The Nichirei Group is 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 and the media; toinvestigate the cause of the incident so that a recurrence might be prevented; and to speedily release relevant information.
Establishment of Quality Control Regulations
Nichirei Corporation’s Quality Assurance Division has established rules and standards for quality control and quality
assurance and performs internal audits and monitoring inspections based on quality management standards to ensure that
the Group’s quality management system is functioning effectively.
Each operating company’s Quality Assurance Division performs quality inspections of its own products and services andreports and shares its implementation status with the Quality Assurance Committee and the Group Quality AssuranceCommittee, which assists with the further revision and enhancement of its quality assurance system.
Management of Raw Ingredients
Nichirei Foods researches the materials comprising the raw ingredients in three stages, and manages the distribution
percentages, quality/microbial specifications, manufacturing process, and allergens contained. Raw ingredient suppliers are
required to submit information on each ingredient in the form of ingredient quality specifications. This is placed in its
database and used as the basis for nutritional information and to answer customer questions. When the Nichirei Group
uses a new raw ingredient, it first evaluates the production facilities, confirms the ingredient quality, and checks samples.
An overall assessment follows and, even after an ingredient has been approved for use, the Group continues to do factory
evaluations, inspections, and factory improvements, to further enhance the ingredient. By checking the quality of an
ingredient when it takes delivery, the Nichirei Group is able to verify the effect of its factory evaluations and inspections.

101

The Evaluation Flow for Ingredient Quality Specifications

Building of Traceability
https://www.nichirei.co.jp/english/safety
To always provide safe, reliable and high-quality food, the Nichirei Group conducts rigorous quality controls and inspections,from the ingredients to the products and has built a traceability system that matches the distinguishing characteristics ofeach product. In the event of an accident, enhanced traceability would prevent damage from spreading 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.

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

102

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
Foods’ frozen green soybeans to trace the cultivation and production management. If you know how to read thesecodes, you can trace the entire history of a product, from the cultivation management status in the field to theconditions 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 customers’ needs.

Cultivation Management
The farms, in China and Thailand, where frozen vegetables are produced for Nichirei Foods have been selected based on
their ability to meet Nichirei Foods’ environmental standards (in terms of soil, water quality, etc.) and agro-chemical
management requirements. A farm advisor, from the Group’s frozen vegetable production facilities, is regularly sent tothese 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, and shipping of thevegetables 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 agrochemicals of domestic produce and certifies their safety
at the same time as confirming the proper functioning of the local systems.

Initiatives
Initiatives for Communication with Customers
Initiatives for Communication with Customers

Besides providing products with reliable quality, providing relevant information to customers is Nichirei Foods’ top priority.
Nichirei Foods has eliminated excessive advertising on its packaging and works to provide relevant information.
In addition, through the activities of its Customer Support Center, the Nichirei Group uses its customers’ opinions to provide
feedback to 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 ispossible to look up when and where a product was made, and which ingredients were used. Given the Group’s belief that acustomer’s ability to communicate with lit is of paramount importance, packaging clearly displays a toll free number forenquiries.

103

■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 regulations104

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 to makesure that nothing on the packaging can cause misunderstanding. It is implementing display checks with these two points inmind 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 establishedindependently (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.

Display verification

Inspections
105

・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 customer’s perspective, to ensure that there will be no
misunderstanding. In particularly, it carefully checks sales pitches and other information with a bearing on
product purchases to ensure there are no exaggerations or false statements.

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) and printing
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. Suchscrutiny of information, as is relevant to highly processed ingredients, can require several months. In addition, it adapts tochanges in laws related to food product labeling as they arise.

Examples of information on product ingredients and product areas, allergen displays (Only available
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)106Reports Related to Advertisements/Publicity and Labeling
No laws were violated in the advertisements/publicity and labeling related to products and services.

Number of Violations of Laws and Regulations in Advertisements/Publicity and Labeling

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

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

Quality assurance (number of audits, certifications, and training hours)

Health Initiatives
As a company engaged in food-related businesses, the Nichirei Group believes that access to better nutrition is a very
important part of people’s health. Nichirei Foods develops and sells wellness products that promote health. In addition,
Nichirei Biosciences provides the public with academic and technical information related to immunostaining and has made itavailable to health professionals through an information website, allowing it to contribute to a healthy 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)107Collaboration with Industry Organizations, etc.
The Nichirei Group actively participates in industry group activities and contributes to helping communities improve andsolve 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 Group and its
main subsidiaries are members of the Japan Association of Refrigerated Warehouses, and Nichirei is a member of the Japan
Food Industry Association.

Industry Organizations

The Initiatives of the Nichirei Foods Customer Support Center
Initiatives for Quality Improvement
The Nichirei Foods Customer Support Center aims to improve customer satisfaction and corporate value through quickly
and appropriately responding to the opinions and reports of customers. In addition, Nichirei aims to provide accurate
product information and a brand that is 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, both ofwhich it has them return.
The survey uses a five-point scale to evaluate four areas: initial impression contacted by telephone (reception response);
items noted by the respondent (on the report form); time taken to submit report (response time); and future purchasing
intentions (repeat purchase). Space is also provided for customers to include additional comments. The aggregate results
are used to improve Customer Support Center services. Efforts on this direction are ongoing.

● Breakdown of Customer Interactions in 2019108

● Evaluation of Customer Satisfaction Reception Response

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

TargetMay 11, 2016

2017

2018

2019

2020

Frozen vegetables produced in America (Only available in Japanese)

None

None

None

None

Protection of Personal Information
In FY2021, there were no issues related to the leaking of personal information, etc.

Personal Information Protection Leaks, etc.

109

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 of internal
auditors, how to create HACCPrelated documentation

183
people

72
hours

264
people84
hours

First- to second-year
employee training
sessionBasic knowledge of quality assurance,
factory check, label, response torequests, 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 forrevision of laws andregulations

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
certification and maintenance.

110Occupational Health and Safety / Health Management
Basic Philosophy
Basic Philosophy
If employees are to maximize their abilities and potential, they must be physically and mentally healthy, and be able towork in a safe, comfortable environment. The Nichirei Group considers its employees to be irreplaceable and works withthem to create safe, open and invigorating workplaces.
Basic Policy

1. We will promote the creation of a lively workplace where labor and management cooperate, based on the ideal thatstates that good work has its basis in a healthy mind and body.
2. Each of our employees will work hard to increase his/her health awareness, and will take an active role in creating awork environment that promotes good health.
3. We will strive for health management based on the three pillars of “health maintenance and improvement,” “mental
health measures,” and “safety and hygiene control.”Nichirei Group Health Declaration

111

Management System
Management System
In accordance with the Industrial Safety and Health Law, we have established a Health and Safety Committee to promotehealth and safety management aimed at preventing occupational accidents and managing employee health. At the head
office and branch offices, we have implemented working hour management, focusing on long working hours and noovertime days. At food plants and cold storage warehouses, the main issue is reducing the number of work-related
accidents. We are working to improve the workplace environment according to the circumstances of each workplace. In
addition, based on the idea that customer satisfaction (CS) and employee satisfaction (ES) are the two wheels of the“vehicle” of improvement, the Group perform periodic ES surveys at each company. The Group aims to improve employees’
ability to 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 and safety are discussed and promoted through theGroup Health Promotion Liaison Committee, and the situation is monitored by the Group Human Resources Committee
composed of directors. Regarding the planning and execution of measures, the Group is implementing a variety ofsolutions, such as having each company’s President and Human Resources representative gather for meetings of the Group
Human Assets Committee (held twice a year) to share their progress, as well as applying effective measures to companies.
In addition, in fiscal 2015 (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, the Group establishedthe Nichirei Group Health Declaration and Group Health Management Standards. Along with spreading this declaration both
inside and outside the company, the Group has instructed the top health promotion representative of its holding company
and those responsible for and in charge of overseeing health promotion at each Group operating company to makeprogress with health management.
As a risk assessment for health and safety and health, we place emphasis on analysis of health check results. The contentsof the analysis are described in the “Health White Paper” and published internally to provide education and initiatives
related to health in line with employee health conditions, as well as to make the menu provided at the employee cafeteria
healthier It is also utilized as.

● Occupational Safety and Health Committee Organization Chart

112

Initiatives
Health Management Initiatives
Nichirei Group Health Declaration

Image of promoting health management

To achieve our future vision by 2030, we will implement PDCA cycles in health management measures to promote healthinitiatives.

113

Nichirei Group Health Management Strategy Map
The management issues we want to solve through health management are defined as the embodiment of the Nichirei
Group Health Declaration.
We aim to ensure that our employees, who are responsible for "delivering delicious moments," always work vigorously andin good physical and mental health regardless of age or gender.

Health Management Initiatives
Recognizing employees as corporate assets and these people’s health as an important management issue for a company
seeking sustainable growth, in fiscal 2016 Nichirei set up the Health Promotion Group. It is a dedicated health management
section within the Human Resources Strategy & General Affairs division.
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, to promote Group-wide health we have appointed aholding company health promotion manager, as well as health promotion managers and representatives at each Group
company.
Regular medical checkups—including X-ray screening for the early detection of TB and cancer—together with thoroughfollow-up measures are led by occupational health staff. For our small offices and employees overseas, we conduct remoteinterviews using information and communication technology systems.
In recognition of these efforts, the Group was certified by the Ministry of Economy, Trade and Industry as "The CertifiedHealth and Productivity Management Organization Recognition Program under the large enterprise category (White 500)"(Only available in Japanese). (This is the second consecutive certification since fiscal 2016.)

List of Certifications

114

Health Management Action Plan (Five-Year)

Overall Health and Smoking Cessation Programs
Since 2016, the Nichirei Group has been providing lectures andparticipatory events led by professionals. These include public healthnurses, registered dietitians, and health fitness professionals, who provide
employees at risk for lifestyle-related diseases with specific healthpromotion opportunities.
In FY2020. a total of 1,200 people participated in 14 meetings on a wide
range of themes, such as exercise guidance, diet, sleep improvement, andthe health of working women.
In addition, we launched a smoking cessation program in 2019. Of the 88
people who participated, 34 succeeded in quitting smoking.

Health White Paper, Health Management Guidebook
Nichirei publishes a health white paper and a health management
guidebook (provided to all employees in July 2020) in order to foster
awareness of health issues among employees and encourage them toimprove their health.

Health White Paper (Only available in Japanese)

Health Management Guidebook (Only available in Japanese)115

Main Initiatives in FY2021
Countermeasures against COVID-19
In cooperation with the Group Risk Management Office, theoccupational health staff of the Health Promotion Center built asupport system to provide appropriate advice, prevent the spread of
COVID-19, and prevent discrimination against individuals in the eventthat an employee contracts COVID-19.

Flowchart of countermeasures for COVID-19

100% Health Check-up Rate and Enhancement of Post-examination Follow-up
In 2020 and 2021, despite the COVID-19 pandemic, allemployees completed annual health check-ups. In
addition, under the post-examination follow-up system,
those determined by an industrial physician to require
additional support were remotely interviewed by publichealth nurses as appropriate using e-mail or other
online tools. Employees who score a D on their healthexaminations and choose to undergo detailed
examinations are eligible for a subsidy program as
members of the Nichirei Health Insurance Association.

Effective ways to use check-up waiting times (health newsletter)

Post Medical Exam Follow-up

After health examinations, based on the judgment of an industrial physician, follow-ups will be conducted with those whoshould consider employment restrictions (some of D rank segment) via the persons in charge at each operating company.
Afterwards, if ongoing support is required, a public health nurse will contact the employee via email or in writing. Afterconfirming consultation status, interviews by public health nurses and industrial physicians will be conducted as needed.

116

Health-related Events
Since FY2017, the Nichirei Group has been holding regular health-related
events, providing employees with specific health promotion opportunities
and helping them avoid lifestyle-related diseases. During the COVID-19
pandemic, we have held events on themes such as adequate exercise,
improving sleeping patterns and mental health. In questionnaires, morethan 92% of participants at each event responded that the event was
beneficial.

Health-related event in 2021 on mental health

Introduction of Subsidy Program for Outpatient Smoking Cessation Treatment
In FY2021, 34 employees participated in the smoking cessation program, and 24 were successful. In June 2021, theNichirei Health Insurance Association introduced a subsidy program for outpatient smoking cessation treatment provided byhospital physicians. In these and other ways, we are supporting the health of our employees.

Health and Safety Initiatives
Promotion of acquisition of the Occupational Health and Safety Management System (OHSMS)
The Group aims to enhance its workplace and create a workplace that focuses on employees and offers a high level ofsatisfaction. Please see below for details on efforts.
In March 2005, the Nichirei Foods Shiroishi factory in particular became the first member of the Group to receive JISHAapproved OSHMS (Occupational Safety and Health Management System) certification, and the 49th business establishment
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 HealthManagement System) certification

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

117

Health and Safety Training for Low-temperature Logistics Operations
Logistics Center Safety and Quality-related Training
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 to enable
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 toimprove occupational safety and quality by incorporating into the curriculum practical training to ensure that equipment iscorrectly 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 ofquality 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

Nichirei Logistics Group is making efforts to improve the safety and awareness of operating vehicles through workshops
and skill competitions. In addition, training related to occupational safety and health has been conducted in 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)

118

Launch of Safety and Quality Training Using VR
In FY2022, Nichirei Logistics Group started using virtual reality (VR) for safety and quality training at its logistics work sites.
Until now, practical training has been implemented through courses using a mock-up refrigerated warehouse at certain
training facilities (safety and quality training centers). This made it difficult for employees stationed far away to participate.
It was also difficult for trainees to envision what accidents might happen if rules or manuals were not followed correctly.
With the introduction of a new tool that uses VR technology, employees can learn proper work procedures efficiently
without having to attend a safety and quality training center. They can also experience virtual simulations of accidents thatmight occur as a result of unsafe behaviors. This has led to further improvement of safety awareness.

Using VR

Image seen through headset

Food Factory Safety
Nichirei Foods has identified three priority measures for safety-related activities at food factories: safety patrols, nearmissrelated activities and the mandatory observation of safety rules. Monthly safety patrols are tailored to each factory,
with effective checklist items determined based on site feedback. Patrols are conducted mainly in the early morning andlate at night, when fewer managers are on staff. We also ask employees to share work-related issues and opinions. Held asneeded, near-miss-related activities are designed to reinforce reporting practices and inform employees about possible
dangers through the sharing of information about accident near misses. Activities reconfirm evaluation criteria, thus
ensuring consistency in methodologies for classifying an incident as a near-miss. Preventive steps are then taken as
needed.
Occupational Health and Safety Initiatives for Foreign Technical Interns
Foreign technical interns working in Japan at the Nichirei Group undergo training including occupational health and safety
training. This helps to prevent occupational accidents and facilitate health management for those adjusting to life inanother country, while at the same time helping them improve their Japanese-language skills. Our goal is to create
workplaces where all Nichirei Group employees can work safely and healthily with purpose.

Holding Japanese language speech contests

Bilingual poster in Japanese and Vietnamese119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 aredoing this to prevent occupational accidents and facilitate health management for those unfamiliar with life in Japan, whileat 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.

Health Supervisor
ESG Data Collection Health Manager

120

Improving Work Satisfaction
Basic Philosophy
Basic Philosophy
In conducting business, the Nichirei Group places the greatest importance on human resources. Furthermore, in order toinvigorate our organization, improve productivity, and create a vibrant workplace we not only depend on our values andideas, but also, to a large extent, on our diverse human resources. In 2017, we formulated the Nichirei Group Workplace
Improvement Policy, set targets for each Group company based on the policy, and commenced promoting a number of
initiatives for the fiveyear period to FY2022. The Diversity Promotion Council and the Health Promotion Council have beenorganized under the Group Human Resources Committee to improve work satisfaction. They discuss humanresourcerelated strategies to realize Group-wide sustainable growth, exchange opinions, and share information on specificmeasures, after which they confirm their progress.

Fundamental Policies for Workplace Improvement

Code of Conduct

Workplace Improvement Policy

EnableDiverseWorking
StylesProvide working
condition options

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

Set up systems toprevent disruptionof employee careers

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

Prevent excessive working hours

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 in good
health.

Promote theadvancement offemale employees

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

Provide stimulating
employment
opportunities forpeople withdisabilities

Job positions and employment opportunities for people with disabilities shallbe created to allow them to earn a living through stimulating work, with avision to ultimately eliminate the distinction between people with or without
disabilities in society.

Create employment
opportunities forolder people

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

121

The Human Assets Committee, which promotes the increased job satisfaction-related part of the
Nichirei Pledge, meets twice each year.
Human Assets
Committee

The Diversity Promotion Conference, under the Group Human Assets Committee, meets with laborand management twice a year to monitor measures undertaken at each Group company 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, the disabled.
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 of each
operating company, while related plans and their results are monitored by the Group Human Assets
Committee, which meets twice each year.

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
Management System
Each Group company promotes efforts adapted for its individual businesses, however, the Group has also established theGroup-wide Group Human Assets Committee and Diversity Promotion Conference and shares information about andconfirms the progress with each company’s measures to continually enhance workplaces through these two councils.

122Initiatives
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, and canfully 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 for the
purpose of disseminating the contents, thereby encouraging employees to correctly recognize working hours. In somecases of excessive working hours, we are working to reduce working hours and improve the annual leave rate.

■Workstyle Reforms: Main Measures and Activity Progress (FY2019–FY2021)
PolicyIdeal State
Employees shall havea certain degree of
freedom to choose
their workplace andworking hours, tosuit personal
circumstances.
Systems to maintainthese conditions areto be put in place.

Priority
MeasureProvideworking
condition
options

Main Activity
FY2019FY2020New in-housechildcare facility

Full-scale
introduction ofOpened in theTokyo head officebuilding in April

telework
All worksites except
food factories and2018

logistics offices

Introduction of
comeback system

EnableDiverseStyles ofWorking

Purpose: Ongoingcareer support forlife events andSystems are to beestablished toprevent employees’
careers from being
disrupted or ended
because of suchcircumstances aschildbirth, childcare,nursing care, poor
health, relocation ofa spouse, or disease.

Implementation ofcareer development

Set upsystems toprevent
disruption of
employee
careers

programs for
women Women’s
success event “NextStep for 2021”
Target: 163 people
Nursing careseminar Conductedfour times, 115participants

growthLeave system due
to spouse transfer
Purpose:Examination andintroduction ofmulti-careerformation incollaboration withother companies
Nursing careseminars andnursing carehandbook creation
Conducted fourtimes, 103participants

123

FY2021Introduction ofsuper flextime work
systemCore timeeliminated except
at some work sites
such as factories
and distribution
centers
Expansion ofchildcare andnursing care leave
・Leave can betaken in hourly
units・Half days andwhole days can beconverted andtaken asaccumulated annual
paid leave
Nursing careseminars (heldonline) Conducted
on November 18
and 26 (60 minuteseach), 60 total
participants
Information(provided on
intranet) on
support forbalancing nursing
care with work

Policy

Ideal State

Priority
MeasureMain Activity
FY2019100% introductionof new working
hours management
systemPrevent
Excessive
Working
Hours

Throughcollaborative laborand management
initiatives forworkplace
improvement,
working hours shallbe limited to levels
that allow each
employee todemonstrate theirability and perform
satisfying work ingood health.

Guidance on long
working hours
through
introduction of aworking time
management
Promotion of
paid leavesystem
Implementation of
measures against
overwork throughlabor-management
collaboration
Nichirei Groupworking hours
guidelines
formulated throughlabor-management
collaboration

FY2020Introduced new
expense settlement
systemIntroduced planned
five-day annual
leave system
Implemented elearning: Revisedlabor laws,
working-hourawareness Target:
Employees; 5,101
participants
Implementation of
measures against
overwork throughlabor-management
collaboration

FY2021
Set quantitative
target (averageannual paid leaveuse of at least 10
days across theGroup), andencouraged
employees to takeannual leave
Ongoing
implementation of
measures against
overwork throughlabor-management
collaboration
Implementation ofhuman resource
management
education via elearning

Logistics Group:
5th and 6th“Sakaseru Roji-Jo
Forum”
Target: Female
employees; 129
participants (404
participants intotal) Theme: WorkIn providing
employees withequal opportunities
Ensureand education, we
Equal
support theirOpportunity
development into avaluable force for the
Nichirei Group.

Promote theadvancementof female
employees

values andworkplace forwomen
Nichirei Foods:
LADY, GO
UP!Target: Female
employees at 6
food manufacturing
companies (8female Nichirei
Foods employees
participated)
Summary: Seminarfor building
external networks
and careerdevelopment

124

Logistics Group:
7th and 8th“Sakaseru Roji-Jo
Forum”
Target: Female
employees; 118
participants (522participants intotal)
Nichirei Foods:
LADY, GO
UP!Target: Female
employees at 6
food manufacturing
companies (8female Nichirei
Foods employees
participated)
Summary: Seminarfor building
external networks

Nichirei Foods:
LADY, GO
UP!Target: Female
employees at 6
food manufacturing
companies (8female Nichirei
Foods employees
participated)
Summary: Lectureby external female
officer and seminarfor building
external networks
and careerdevelopment

Policy

Ideal State

Priority
MeasureMain Activity
FY2019FY2020

FY2021
Nichirei Foods:
Diversity Forum・Lecture held
(February 25,
2021)
・Target: Officers(8 participants) andemployees (approx.
140 participants)
Nichirei Foods:

In providing
employees withequal opportunities
and education, we
Diversity andsupport their
inclusiondevelopment into avaluable force for the
Nichirei Group.

EnsureEqual
Opportunity

Nichirei Foods:
Diversity Forum

Nichirei Foods:
Diversity Forum

Deepenunderstanding ofvarious work styles

Deepenunderstanding ofvarious work styles

centered on
department andsection managers
at each of 6 foodcentered on
department andsection managers
at each of 6 food

manufacturing
companies. 35
Nichirei Foods
employees (26manufacturing
companies. 60
Nichirei Foods
employees (46men, 9 women)men, 14 women)

Meeting of generalmanagers from 6
food manufacturing
companies
・Meeting ofgeneral managersof planningdepartments from
6 foodmanufacturing
companies
・2 executive
officers, 5 generalmanagers, 14
employees fromsecretariat (21people from 6
companies)
Nichirei Foods:
10th year of J-win
・Female leaders
training programorganized by nonprofit organization
J-win (one-year
program)Job positions andemployment
opportunities forpeople withdisabilities shall becreated to enable
them to earn a living
through stimulating
work, with a vision
to ultimately
eliminate thedistinction between
people with orwithout disabilities insociety.

Providestimulating
employment
opportunities
for people
withdisabilities

Disabled
employment rate:

Disabled
employment rate:

Disabled
employment rate:

2.56%(104 people withdisabilities

2.75%(101 people withdisabilities

2.80%(101 people withdisabilities

employed)

employed)

employed)

125

Policy

Ideal State

Priority
MeasureAs the healthy life
span of people
becomes longer, we
will create
workplaces thatenable seniors toleverage their
distinctive
experience and play
an active role
reflecting theirindividual values andworkstyles.

Createemployment
opportunities
for olderpeopleMain Activity
FY2019FY2020

FY202159 employees
rehired after

57 employees
rehired after

51 employees
rehired after

retirement (64retirees)

retirement (65retirees)

retirement (59retirees)

Impartial Hiring Opportunities
The Group releases recruiting essentials and all other information on its website, accepts a wide variety of applications, andimpartially 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)

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

Percentage of Non-company Employees

Diverse Styles of Working（Provide working condition options）
In-House Childcare Facility
In April 2018, Nichirei opened an in-house daycare center at its Head Office, locatedin the Tsukiji district of Tokyo’s Chuo Ward. This is one of the Group’s workstylereforms, designed to enable the early return to work by those employees raisingchildren and to support a work–life balance.
In an effort to assist members of the community, by helping alleviate the problem
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 workplace126Supporting Foreign Technical Interns’ Careers
The Nichirei Group provides training opportunities based on career path planning and development so that diverse humanresources are able to play an active role in their respective workplaces, based on satisfying and stimulating work. In Japan,
we strive to create workplaces that offer foreign technical interns a sense of job satisfaction. In addition, we provide
introductions for foreign technical interns to Group company workplaces in their own countries, and opportunities thatenable them to continue their careers utilizing expertise acquired in Japan. Training covers such topics as food hygiene
management and occupational health and safety.

Nichirei Fresh Maruichi (Head Office: Onahama Plant in Fukushima Prefecture)
A Vietnamese technical intern who worked at the Fresh Maruichi Onahama Plant for four years starting in 2015
continues to perform quality control work at the newly established Nichirei Fresh fish processing plant in Vietnam.
She plays an active role in her home country, utilizing what she learned at food manufacturing sites and by doing
quality control-related work in Japan. In FY2021, one former foreign technical intern began work at the same
Vietnamese plant. Nichirei plans to continue supporting the career advancement of its foreign technical interns.

127

Human Asset Cultivation and Diversity
Basic Philosophy
Basic Philosophy
The Nichirei Group, in order to fulfill its mission statement, is striving to continually enhance its workplaces as part of the
CSR activities of its basic policy, the Nichirei Pledge. In addition, in “Corporate Philosophy: Start by Focusing on
Employees,” the “prevention of discrimination based on gender, age, education, race, or religion, and the provision of equal
opportunity” is established as one of its policies.

The Nichirei Group Workplace Improvement Policy

Management System
Management System
Each fiscal year, the Nichirei Group provides employees with an educational program for the year. It is devised by the
Human Resources Committee in accordance with Group Education and Training Rules to support the career advancement ofeach employee. In addition, we use the Nichirei intranet to conduct e-learning courses for all employees in Japan todevelop their skills in areas such as quality, safety, governance and compliance.

Initiatives
Workstyle Diversity
Supporting Non-Japanese Trainees’ Careers

The Nichirei Group provides training opportunities based on career path planning and development so that diverse humanresources are able to play an active role in their respective workplaces, based on satisfying and stimulating work. In Japan,
we strive to create workplaces that offer foreign technical interns a sense of job satisfaction. In addition, we provide
introductions for foreign technical interns to Group company workplaces in their own countries, and opportunities thatenable them to continue their careers utilizing expertise acquired in Japan. Training covers such topics as food hygiene
management and occupational health and safety.

128

Fresh Maruichi（ Head Office: Onahama Factory in Fukushima Prefecture）
A Vietnamese technical intern trainee who worked at the Fresh Maruichi Onahama Plant for four years starting in2015 continues to perform quality control work at the newly established Nichirei Fresh fish processing plant in
Vietnam. She plays an active role in her home country by utilizing what he learned at food manufacturing sites andby doing quality control-related work in Japan. In FY2021, one former foreign technical intern trainee began workat the same Vietnamese plant. Nichirei plans to continue supporting the career advancement of its foreign trainees.

Articles introducing the Onahama Factory in the Group's in-house magazine (left: Japanese, right: Vietnamese)

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 toconvert 10,000 hours of human labor to RPA each year, we actually converted
20,000 hours. In addition to resolving the problem of long working hours, thetime freed up by automated operations allows for a shift in emphasis from office
operations to resources; strengthens communications with worksites; and allows

Worksite employees engaged in RPA
operation training

sufficient time for staff to meet with visitors, including business partners. In addition, the extra time available has madepossible 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 to create
RPA scenarios.

129

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 located at
Group companies, as well as office interiors within our logistics centers and the maintenance of green spaces. The Groupwill continue to create comfortable working environments for individuals with disabilities.

Employment Rate of People with Disabilities

Offering Employees Workplace Transfer Options
Nichirei Foods Inc. revised its personnel system during FY2016 and FY2017, in order to specify which employees are notsubject 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 andpreferences of Nichirei Foods employees, and to create workplaces in which all members are motivated to work.

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

Sakaseru Roji-Jo Forum

130

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 of 60,
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 and knowledge
contribute to Group development.

Lecture on frozen foods during avirtual factory tour

Career Declaration System
To improve job satisfaction, it is important to provide employees with roles compatible with their career plans. The Grouphas 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
Employees Using Time Off for Childrearing

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
Nichirei Group Main education and training

Nichirei Group Education time and number of participants131

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 career advancement of each
employee.
In addition, to improve employees’ skills, we conduct e-learning courses focused on quality, safety, governance, andcompliance for all employees in Japan using the Nichirei intranet.

■Level-based training plan
Training plan

Objective

TargetExecutive 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.

Executive officers

Next-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

Creating true managers: Fostering human assets able to play a part increating a strong and autonomous organization which discovers
problems that need to be solved and creates its own solutions tobecome 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, careerhires, transferred
employees)

Facilitation Training

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

All employees

Training for Newly
Appointed Managers

To elucidate the role of managers expected to lead the organization,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

Leader Training

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
belonging132

New hires,
employees intheir second andthird years of
employment

Governance

GovernanceCorporate Governance

・
・
・

134

Risk Management

・
・
・

145

Compliance / Internal Control

・
・
・

151

133

Corporate Governance
Basic Philosophy
Basic Philosophy
On the basis of its holding company structure, the Group engages in business through its Group companies across a wide
range of fields which include processed foods, marine products, meat and poultry products, logistics, and biosciences. In
pursuit of sustainable growth and the enhancement of corporate value over the medium to long term, the Company's
Board of Directors formulates Group strategies and supervises the business execution of operating companies.
The holding company maintains awareness regarding the principles of the Corporate Governance Code and views theachievement of fair and transparent management as an important management issue. Accordingly, under the supervisionof the Board of Directors, we will promote appropriate resource allocation, speed up decision-making, and ensure thoroughcompliance while continuing to strengthen our governance.
In addition, we have established ourselves as a company with Audit & Supervisory Board system, an institutional design
specified within the Companies Act of Japan.

Management System
Management System■Corporate Governance Structure134Corporate Governance, Integrated Report 2021

Corporate Governance Framework■Activities Aimed at Strengthening the Nichirei Group’s Corporate Governance Structure■Overview of Board of Directors
Composition

11 directors (4 outside directors)

Number ofmeetings in
FY202118

Description ofoperations

Promotes proper allocation of Group resources, swift decision-making and thorough compliancethrough supervision of the Group’s strategy planning and business execution of operating companies.
After discussion by the Group Strategy Committee, which meets twice a year, the Board of Directors
formulates and approves the Group’s strategies and conducts quarterly checks of the status of
implementation at each Group business. It also engages in highly effective supervision of executive
directors and executive officers.

135

■Overview of Audit & Supervisory Board
Composition

5 Audit & Supervisory Board members

Number ofmeetings in
FY2021

16

Description ofoperations

As a body that is independent from the Board of Directors, the Audit & Supervisory Board
communicates with directors, Corporate Internal Audit Division and other departments of the holding
company in accordance with the annual audit policy and audit plan to gather information and prepare
the audit environment.

■Status of the Establishment of Voluntary Committees, Their Composition and the Attributes of Their
Chairpersons
Committee

Role

Chairperson

Frequency

Nominating
Advisory
Committee

Discusses the suitability of candidates for senior management andShizuka Uzawa
directors/Audit & Supervisory Board members, as well as
Outside Director
successor plans, and reports its findings to the Board of Directors.

Twice a year,
in principle

Remuneration
Advisory
Committee

Discusses the remuneration system, remuneration levels, theappropriateness of remuneration amounts, and other related
matters, and reports to the Board of Directors.

Twice a year,
in principle

Shizuka Uzawa
Outside Director

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 improve transparency
and strengthen supervisory functions, three of the current 10 directors are outside directors. The Board meets at least
once a month. The Board of Directors is chaired by the Representative Director and Chairman, who also serves as an
executive officer. Together, the Representative Director and Chairman and the Representative Director and President
oversee the Group’s overall execution of business.
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, another is anexperienced attorney, and the third has worked at a government agency. Audit & Supervisory Board meets once a 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 & supervisory board members, andstrengthening the supervisory role of management.

136

Independent Outside Directors and Outside Audit & Supervisory Board Members
The Company adheres to its Criteria for Independence when appointing outside directors and outside audit & supervisoryboard 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 in other important positions.

Outside Directors and Outside Audit & Supervisory Board Members Appointments

Notice of the 103rd Anuual General Shareholders Meeting

Skill Matrix

Directors

Audit &
Supervisory
Board
Members

Position

Name

Planning &Management

ESG/
Sustainability

Representative
Director, Chairman

Kunio
Otani

●

Representative
Director, President

Kenya
Okushi●

Director,
Executive Officer

Junji
KawasakiDirector,
Executive Officer

Kazuhiko
Umezawa●(Coldstoragelogistics)●●

Director,
Executive Officer

Masahiko
Takenaga●(Processed
foods)●●

Director,
Executive Officer

WataruTanabe●(Fisheries
and livestock)●●

Outside Director

Shizuka
Uzawa

●

●

Outside Director

Mieko
Wanibuchi●

Outside Director

Global(Internationality)

Innovation/
Marketing

●
●

●

●

Financial
Accounting/
Finance

Legal/
Compliance

●

●

●
●

●

●

●

●

●

KunikoShoji●●

Outside Director

Mana
Nabeshima●

Audit & Supervisory
Board Member

Kazuhiko
YasudaAudit & Supervisory
Board Member

Tatsushi
Kato

●

●

Outside Audit &Supervisory Board
MemberYuhikoSaito●●

Outside Audit &Supervisory Board
MemberKiyoshi
Asahina●

Outside Audit &Supervisory Board
MemberMuneakiKiyota

●

●

●
●
●

●

●

●

* The above list does not represent all the knowledge, experience, and abilities possessed by each director andauditor.

137

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

Category

OutsideDirectors

OutsideAudit &
Supervisory
Board
Members

Name

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

Main Activities

Shizuka Uzawa

Attended 18 of 18
meetings of the Boardof Directors

Mr. Shizuka Uzawa has extensive experience as a corporate
executive coupled with a wide-ranging knowledge of financeand accounting and, in the interest of Group management,
provides opinions and advice during meetings of the Board of
Directors and various other internal meetings.

Mieko Wanibuchi

Attended 16 of 18
meetings of the Boardof Directors

Ms. Mieko Wanibuchi has worked in corporate management for
many years and leverages the experience and knowledge
acquired through these endeavors to offer opinions and advice
during meetings of the Board of Directors and various otherinternal meetings.

Kuniko Shoji

Attended 17 of 18
meetings of the Boardof Directors*

Ms. Kuniko Shoji has extensive experience as a corporate
manager in the pharmaceutical-related industry and broad
knowledge of quality assurance and R&D. She also offers
opinions and advice during meetings of the Board of Directors
and various other internal meetings.

Attended 18 of 18
meetings of the Boardof Directors
Masaaki Okajima
Attended 16 of 16
meetings of Audit &Supervisory Board

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

Kazuo Nagano

Attended 18 of 18
meetings of the Boardof Directors Attended
16 of 16 meetings of
Audit & Supervisory
Board

Mr. Kazuo Nagano owns advanced experience and knowledge
as a corporate manager including the management of financial
institution.

Yuhiko Saito

Attended 14 of 14
meetings of the Boardof 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 in government office. Having
worked as an attorney since retiring from public office, hepossesses wealth of experience and intricate knowledge as alegal expert.

* This member assumed his or her position after being appointed at the 101st Ordinary General Meeting of
Shareholders held on June 25, 2019.
Committees for Effective Corporate GovernanceNichirei has set up committees to advise the Board of Directors, to ensure effective corporate governance. The committees
include the Nominating Advisory, Compensation Advisory, Group Human Resources, Group Risk Management, Group
Environmental Protection, Group Quality Assurance, Group Internal Control, Group Director Review, and Group Social
Contribution Committees. In addition, to advance the execution of business by the president, Nichirei has set up theManagement, Review, and Intellectual Property Management Committees, an overview of which follows.

138

■Status of Appointment of Members to the Board of Directors and Various Committees
Status of Appointment
Representative
Director,
ChairmanManagement Committee
Group Human Resources Committee

Representative
Director,
President
Insidedirectors
Audit &
Supervisory
Board
members

Group Environmental Protection Committee
Group Quality Assurance Committee
Social Action Program Committee
Boards of Directors
Group Risk Management Committee
Group Internal Control Committee
Group Officer Examination Committee

Outsidedirectors
Outside Audit&
Supervisory
Board
members

Number of Meetings of Various Committees, etc.

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 the status ofinternal controls across management activities, and offers advice as necessary, in order to ensure strict compliance andobservance of the Group code of conduct, and raise awareness of risk management. In addition, the division conducts
facility audits inspecting the status of production plants, distribution centers, and other facility audits providing appropriate
guidance and advice.
Officer Remuneration
Design of the remuneration scheme for directors and executive officers incorporates the opinions of a third-party
organization. Remuneration comprises a base remuneration component and a bonus component. Base remuneration ispaid at a fixed rate determined in accordance with a remuneration schedule. Bonuses are paid according to the concept of
productivity-linked bonuses, based on the results of the Nichirei Group, the performance-budget achievement rate of therelevant officer’s business area, and an individual qualitative assessment. Outside directors receive base remuneration only;
they are not paid a bonus. Nichirei has established a Remuneration Advisory Committee which meets, in principle, 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 and bonuses paid to directors must be within the limit resolved at a General Meeting of
Shareholders.

139

■Policies and Methods for Determining Officer Remuneration
The policy for determining individual director remuneration is for the Remuneration Advisory Committee to discuss theappropriateness of each director’s remuneration every fiscal year and for the decision to be made by the Board of
Directors. In these discussions, the Remuneration Advisory Committee reflects changes in the management environment
and the opinions of shareholders and investors, and obtains information necessary for discussion from third-party agencies
with extensive global knowledge and experience.
■Basic Policies
Directors (excluding outside directors)
Remuneration shall strongly encourage directors to perform their duties in accordance with the Group’s Management
Principles, basic CSR policy, the Nichirei Pledge and management strategies.
In order to achieve long-term management goals, remuneration is set to strongly motivate directors to achieve specificmanagement goals with regard to the Group’s material issues and medium-term business plans.
In order for remuneration to serve an incentive toward the Group’s sustainable growth, the ratio of remuneration linked
to short-term results, performance of duties, etc. (performance-linked bonuses) and remuneration linked to medium- tolong-term results and corporate value (stock compensation) will be set in an appropriate manner.
Directors and executive officers shall be treated in a manner befitting their positions as officers of the Company inconsideration of the significance of the Group’s social role and responsibilities, trends at companies, including those in thefood and logistic industries, that compete with the Group in terms of business and human resources, and changes in thebusiness environment.
Outside Directors
In light of their role of supervising the Company’s management from an independent and objective standpoint, outside
directors are paid only basic remuneration (fixed) compensation.
Directors (excluding outside directors)
As shown below, remuneration for directors other than outside directors consists of role-based remuneration and a
director allowance, which are basic (fixed) remuneration, and performance-based bonuses and stock compensation,
which are variable remuneration.

Remuneration Composition

Basic (fixed)
remuneration

GeneralPercentage

Role-based
remuneration
Director
allowance

Performancelinked
bonuses

Basic remuneration for performance of duties
Set according to the significance of the role of each director
60％

Remuneration for the responsibilities of making andsupervising the execution of management decisions Set ata uniform amount for all directors

20%

Remuneration for motivating directors to achieve annual
financial and strategic goals
The amount paid when achieving goals (“standard
amount”) is set as a percentage of role-based
compensation
Paid within a range of 0-200% of the standard amountaccording to degree of achievement

20%

Remuneration for encouraging management from a longterm/Group-wide perspective and the perspective ofshareholders and investors
Value of shares issued each fiscal year (“standard amount”)
is set as a percentage of role-based compensation
Restricted shares are issued annually in an amount equal to
the standard amount, and restrictions are lifted upon adirector’s retirement

Variable
remuneration
Stockcompensation(restricted
shares)Purpose/Description

140

■Performance-Linked Bonuses
The total amount of monetary remuneration to be paid to each director as a performance-linked bonus is calculated by
dividing the standard amount set according to the significance of the director’s role into three categories, namely“Company-wide evaluation,” “Business evaluation,” and “Individual evaluation,” multiplying these amounts by the respective
evaluation coefficients and adding the respective results.
Standard amount of performance-linked bonus
Position

Company-wide
evaluation

Representative
Director, President

100%

Director (in charge ofbusiness)

50%

Director (in charge offunction)

70%

Business
evaluation

30%

Individual
evaluation

20%
30%

Amount of individual bonus =Company-wide evaluation standard amount x Company-wide evaluation coefficient (0-200%)+ Business evaluation standard amount x Business evaluation coefficient (0-200%)+ Individual evaluation standard amount x Individual evaluation coefficient (0-200%)
The key performance indicators (KPIs) for calculating each evaluation coefficient are selected from among the financial andstrategic indicators that the Company emphasizes in its medium-term business plan. The KPIs for calculating the Companywide evaluation coefficient and the weights are provided below.
KPIs for Calculating theCompany-wide Evaluation
Coefficient

WeightReason for Selection

Consolidated net sales

20%

Indicator of expansion of business scale, which is a source of profit
growthConsolidated EBITDA

60%

Indicator of cash flow generation capabilities and profit growth while
actively investing for growth

Consolidated REP

20%

Indicator contributing to improving corporate value by taking capital
cost into accountNotes:

1. The KPIs for calculating the business evaluation coefficient are net sales (25%) and EBITDA (75%), consistent
with the Company-wide evaluation. The KPIs for calculating the individual evaluation coefficient are particularly
important items (including initiatives to improve REP in each business and initiatives related to training
successors) selected individually from the Company’s medium- to long-term strategic issues and challenges.
2. Retained Economic Profit (REP) is a unique business management indicator used by the Group and is
calculated by deducting capital costs (capital used x WACC) from NOPAT.

141

■Procedures for Determining Remuneration
In order to ensure appropriateness and objectivity in matters related to remuneration for individual directors, theRemuneration Advisory Committee, comprising mainly independent outside directors, discusses matters first and reports its
findings to the Board of Directors, which then makes its decisions. The Remuneration Advisory Committee has discussions
that touch on changes in the management environment and opinions of shareholders and investors, and appropriately
obtains information necessary for discussion based on objective and expert standpoints. In the process of determining theamount of individual performance-linked bonuses, the representative director, president, who has been delegated by the
Board of Directors, interviews each director in regard to individual performance targets and evaluation results and makes a
proposal. This proposal is discussed by the Remuneration Advisory Committee, and then the representative director,
president, decides on the final amount. In order to ensure objectivity and fairness in the determination of individual
performance targets and evaluation results, the results are reported to the Board of Directors in a timely and appropriatemanner. The final amount of individual bonus payments proposed by the representative director, president, is thendiscussed by the Remuneration Advisory Committee and decided by the Board of Directors.

■Total Amount of Officer Remuneration in FY2021
Total amount of remuneration by category (Millionsof yen)Officer classification

Total amount of
remuneration(Millions of yen)

Number of
eligible officers

Basic
remuneration

Performancelinked officers
bonuses

Restricted stockcompensation

Directors(excluding outside
directors)

262
(162)

81
(48)

85
(85)

428
(295)

7
(7)

Outside directors

32

-

-

32

3

Audit & Supervisory
Board members(excluding outside
Audit & Supervisory
Board members)

48

-

-

48

2

Outside Audit &Supervisory Board
members

32

-

-

32

5

Total

374
(274)

81
(48)

85
(85)

541
(408)

17
(17)

Amounts of remuneration, etc. paid to directors and company auditors: Notice of the 102nd Annual
General Shareholders Meeting, page 33(Only Available in Japanese)142

Board of Directors Evaluations
As necessary, and with the assistance of outside experts, the Company conducts analyses and evaluations of the Board of
Directors’ activities to ensure its decision-making is effective. Summaries of the results are subsequently disclosed.

Nichirei Integrated Report 2021 Corporate Governance

The Board of Directors Role and Institutional Design

Initiative

The current institutional design of a company with Audit & Supervisory Board system was deemed
appropriate as decision-making and management supervision are executed effectively, thus many
were of the opinion that there was no need to transition to a different institutional (a company withaudit and supervisory or nominating committees) design. There were also many opinions indicating
that, depending on future conditions, the board should examine transitioning to another institutional
design that places more emphasis on the Board of Directors supervisory function.

Futureapproach

In light of Nichirei Group management strategies, changes in the business environment going forward
and Corporate Governance Code requirements, the Company decided to engage in ongoing
discussions regarding the role of the Board of Directors, as well as institutional designs mostappropriate for executing that role, while continuing to review options including the transition to acompany with audit and supervisory or nominating committees.

Board of Directors Composition

Initiative

While the ratio of outside directors among board members was evaluated positively as a whole, taking
into account Corporate Governance Code revisions and the annual tightening of voting rights execution
criteria for institutional investors, many respondents were of the opinion that the ratio of outside
director appointments should be increased to one-third or more. Additionally, there were many other
opinions exchanged regarding inside director composition and outside director diversity.

Futureapproach

In light of Group management strategies and recent requests from institutional investors to increase
the ratio of outside directors, the number of outside directors was increased by one at the General
Meeting of Shareholders held on June 22, 2021. In all, 11 directors, including four outside directors,
were appointed. Going forward, the Company decided to continue examining inside director
composition and outside director diversity and will consider whether or not to increase the outside
director ratio over the medium to long term.

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Board of Directors Administration and Meeting Materials Management

Initiative

Many respondents gave positive assessments of the progress made in improving meeting materials in
response to paperless initiatives implemented since October 2018. At the same time, several
respondents were of the opinion that further improvements were needed regarding the content andtiming of provision of Board of Director meeting materials.

FutureapproachWith a view to energizing Board of Director deliberations and improving its efficacy by further
innovating and enhancing the content of meeting materials and providing information in advance, theCompany decided to provide materials even further in advance of meetings, create opportunities toshare required information regarding projects of high importancein advance, and pursue improvements in the format of proposal materials used from 2020 pertaining
to investment and financing projects and other specific agenda items that tend to involve a
comparatively large volume of materials.

Efforts to Ensure Meaningful Discussions
Nichirei distributes materials for use at Board of Directors meetings to each director and Audit & Supervisory Board
member at least three days in advance of meetings in order to ensure meaningful discussions.
When internal communication and coordination are required to accurately provide Company information in response to
instructions from independent outside directors or independent outside Audit & Supervisory Board members, the secretaryin charge acts as the contact point in order to ensure necessary coordination with relevant departments.
Newly appointed directors and Audit & Supervisory Board members are given training as necessary on the Companies Act
and other related laws, management strategy, ﬁnancial analysis and other such matters. Additional training on legislative
revisions and management issues is provided as necessary after new members assume ofﬁce. Moreover, explanations of
the Group’s businesses and tours of the major facilities are provided to outside ofﬁcers as necessary.
Approach to Cross-Shareholdings
Cross-shareholdings are only utilized when it is determined that they will contribute to improvement of the Company’s
corporate value; for example by maintaining and strengthening trade and cooperative relationships. In addition, every year,
the Board of Directors reviews the economic rationale of individual shareholdings of this type from a medium- to long-term
perspective. If the importance of a particular shareholding is determined to have diminished, the shares are sold. In
conducting such reviews, the Board of Directors carefully examines and makes a comprehensive judgment on whether the
benefits, such as profits from transactions, and dividends or risks are commensurate with the cost of capital, followed byconsideration of a qualitative evaluation of the strategic importance of the shareholding. In regard to the exercise of voting
rights for cross-shareholdings, the Company will review all the details of the relevant proposal in the investee company’s
shareholders meeting agenda, and if any of the following apply to the investee company, the Company will make a decision
after carefully examination on a case-by-case basis:（１）The investee has engaged in acts that will lead to a loss of shareholder value（２）The investee’s performance or stock price has deteriorated significantly（３）There are other serious doubts with respect to agreeing to the proposal

144

Risk Management
Basic Philosophy
Basic Philosophy
The Nichirei Group has established the Group Risk Management Committee, chaired by the representative director,
president, to manage the various risks associated with its business activities, in the most appropriate and rational way froma comprehensive standpoint, and to maximize the Group’s corporate value. The committee identifies and evaluates Groupwide risks, and Nichirei and its operating companies take countermeasures to these risks on their own accord, based on theestablished risk management cycle. Important items are reported to the Board of Directors of Nichirei Corporation, theholding company, which considers countermeasures.

Internal Control

Business Risk, page 14, Annual Securities Report (for the year ended March 31, 2021) (Only
Available in Japanese)

Nichirei’s Value Creation Process, page 22-23, Integrated Report 2021

Management System
Management System
Believing that the actions of each employee count in preventing a number of risks, Nichirei devised a Code of Conduct
comprising 12 articles (revised in 2014). The code involves compliance and ethical behavior regarding the environment,
society, and governance. It is designed to minimize, thorough awareness, the risk of compliance infractions and otherissues.
The Group Risk Management Committee identifies and evaluates risks, while running a risk management system for theGroup. Any significant risks identified by the risk management process are reported to the holding company’s board of
directors for discussion.

145

Committee

Chairperson

PurposeGroup Risk
Management
Committee

To use the most appropriate and rational methods to comprehensively
manage uncertainties that could damage the Nichirei Group’s corporate
value. An Overseas Compliance Subcommittee and Information Security
Subcommittee have been established under this committee to monitor
progress on measures related to responding to important risks.

Group
Environmental
Protection
Committee

To contribute to coexistence with an environmentally friendly society. This
includes reducing environmental impact, enhancing environmental
protection activities and compliance with legal requirements such asenvironmental laws, regulations and ordinances.

Group Quality
Assurance
Committee

Kenya
Okushi

Representative
Director,
President

To achieve the product and service quality expected by customers andsociety.

Group Supply Chain
Committee

To plan and review uniform Group-wide initiatives for building andmaintaining a sound and sustainable supply chain and to contribute to themutual prosperity and harmony of stakeholders of the Nichirei Group and its
supply chains.

Group Internal
Control Committee

To enhance the business operations of Group companies and improve
efficiency by establishing, operating, monitoring and improving internal
control systems at each Group company.

Group Officer
Examination
Committee

Consulting
lawyerTo ensure the fairness of rewards and punishments for directors andexecutive officers of the holding company and four core operatingcompanies.

Educating Employees about the Code of Conduct to Ensure Compliance146

Important Risks and Countermeasures of the Nichirei Group
Risk Category

CountermeasureManagement
SystemEconomic
conditions andbusiness
environment

In response to environmental changes, the Nichirei Group is
promoting innovation through its
wide-ranging businesses, which provide value in the fields of food andhealth, and creating new value that offers solutions to issues facing its
customers and society at large. Through these efforts, the Group
contributes to good eating habits and health for all people.

Strategic
management

Finance

The Company works to minimize the impact of exchange rate
fluctuation on business results through forward exchange contracts
and other measures. In regard to fixed asset holdings, the Company
has introduced a PDCA cycle for each investment, and clarifies theitems for consideration when preparing investment plans, as well as
the rules for post-investment verification to ensure proper operations.

Finance

Changes in laws,
regulations, andbusiness practices

The Nichirei Group works to ensure thorough compliance based on the
Nichirei Pledge, which is the Group’s basic CSR policy. The Group also
pays careful attention to trends in the laws and regulations of eachcountry and region and gathers necessary information. The Group
recognizes changes in laws and regulations related to the environmentand society as particularly urgent issues from the standpoint of bothrisk and opportunity and takes action accordingly.

Strategic
management

Food quality issues

In order to provide customers with reliable products and services, theNichirei Group works to enhance its integrated quality assurance
system from product development to procurement of ingredients,
production and sales. Ensuring food safety and reliability is theGroup’s top priority. This includes appropriate ingredient and productquality and production control, development of traceability systems,
food defense initiatives, and training and proper allocation of
personnel.

Group Quality
Assurance
Committee

Supply chain

The processed foods business continually improves formulation
technology and production efficiency to reduce manufacturing costs
and develop products that offer greater value. The marine, meat andpoultry products business works to balance supply and demand inprocurement and sales, expand the lineup of processed products thatare less susceptible to the impact of fluctuating market prices, andincrease sales of differentiated products. In addition, this businessmakes efforts for sustainable food procurement by carrying MSC/ASCcertified marine products, procuring sustainable palm oil, andconducting a sustainable-cycle poultry business.

Group Supply Chain
Committee, Group
Environmental
Protection
Committee

Climate change

As climate change initiatives, the Nichirei Group is working toconserve energy in ways such as introducing highly efficientequipment, and is switching from fluorocarbon to natural coolants.
The Group is also introducing solar power generation equipment andpurchasing green power certificates and other sources of renewableenergy that do not produce CO2 emissions. In addition, the Group is
conducting ongoing assessments of the impact of climate change anddisclosing information according to the recommendations of the Task
Force on Climate-related Financial Disclosures (TCFD).

Group Environmental
Protection
Committee

Information
systems/security

In regard to information security, the Nichirei Group has implemented
technical measures against external cyberattacks, including a firewall,
an intrusion detection system and a proper authentication system. At
the same time, the Group is working to build an appropriate
management structure for its information systems by preparing rules
on information security and providing e-learning and other training toemployees.

Group Risk
Management
Committee

147

Risk Category

Disasters

Countermeasure
As countermeasures for large-scale natural disasters, the Group isproceeding with seismic retrofitting work and deploying emergency
generators and has established an employee safety confirmation
system as well as a disaster prevention manual and business
continuity plan (BCP), and utilizes multiple data centers.

Management
SystemGroup Risk
Management
Committee

Initiatives
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 to collecting
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 for our
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 the event of adisaster, such as an earthquake with an intensity of five or higher, emails will be sent to each employee to check whether
they are safe, and relevant local information will be provided immediately on the website. The system allows for the rapid
collection and sharing of information.

148

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 a disasterrecovery (DR) system to enable rapid business continuity. In the event of a large-scale disaster, we would be able toquickly 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. Thisis 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 continuity of ourbusiness partners.

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, the Nichirei
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 to forecast
typhoons and other weather-related disasters on the Company website, we provide business partners with information 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.

149

Countermeasures Headquarters Establishment Flow

COVID-19 Response Manual

Facility Disinfection Manual

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

150

Compliance/Internal Control
Basic Philosophy
Approach to Internal Control
The Group recognizes that developing and operating an internal control system to facilitate operational effectiveness andefficiency, ensure the accuracy of financial reports, comply with laws and regulations pertinent to business, and tosafeguard its assets will translate into higher corporate value. In terms of the development of systems necessary to ensurethat the execution of the duties by the directors complies with laws and regulations and the Articles of Incorporation, andother systems prescribed by ordinance of the Ministry of Justice as systems necessary to ensure the propriety of operationsof the Company and the operations of the group of enterprises consisting of the Company and its subsidiaries pursuant to
the Companies Act of Japan, the Company has established the basic policy for its internal control system as follows. The
Company will endeavor to improve the policy by reviewing it annually to adapt to changes in the business environment,
etc.

Internal Controls Basic Policy
1. Compliance with the law and internal regulations
1) The Company, in accordance with the Group’s management principles and code of conduct, shall comply withthe laws, regulations, and its articles of incorporation, refrain from dishonest or antisocial corporate
activities, and ensure that competition is fair.
2) As the holding company, the Company shall manage the Group and strengthen corporate governance by
establishing, implementing, maintaining internal controls for the entire Group; formulate business strategies
for the Group; conduct internal Group audits; monitor business companies; and facilitate the joint
procurement of assets.
3) The Company shall ensure its disclosures are prompt, accurate, and fair, based on the Group’s accounting
regulations. It shall be accountable to shareholders and investors on an ongoing basis, while ensuring thetransparency of corporate information.
4) The Company shall establish a Group auditing department that, based on the Group’s in-house audit
regulations, shall audit Group company controls.
5) The Company, in order to handle reports and consultations by employees concerning acts that may violate
corporate ethics, shall establish an in-house reporting system (a hotline) that protects whistleblowers. Everyeffort shall be made to discover and correct violations of the system at an early stage, and ensurecompliance.
6) The Company, in accordance with guidelines regarding the Board of Directors, office structures, and otherinternal arrangements, shall establish systems for appropriate and efficient execution of duties, based on
rules regarding management authority and decision-making.
2. Managing information on Company, subsidiary directors
1) The Company shall properly record, retain, manage, and preserve minutes of the Board of Directors
meetings, documents for circulation, and other information regarding execution of duties, in accordancewith the law, as well as internal regulations regarding the Board of Directors, Group document
management, and information security management.
2) The Company?based on Group regulations concerning Group management, Group materials for discussion or
circulation, and other Group arrangements?shall receive reports on matters regarding the execution of151

duties by directors and employees of subsidiaries.
3) The Company’s directors and company auditors shall be able to directly examine and/or copy any
information regarding execution of duties that has been electronically recorded, retained, managed, orpreserved by the Company’s departments.
4) When requested by a director or company auditor, the Company’s departments shall promptly provide or
submit for inspection the specified information.
3. Risk management of Company, subsidiary losses
1) Based on the Group’s risk management regulations, the Company shall identify and evaluate Group risks
through the Group Risk Management Committee, and establish a risk management framework for theGroup.
2) The Company and its businesses, reflecting the risk management cycle, shall voluntarily and independently
respond to corporate activity-related risks. Important matters shall be reported to the holding company’s
Board of Directors, and the response discussed.
3) Based on the Group’s risk management regulations, the Company shall respond promptly and appropriately
in the event of a disaster, accident, incident, or other crisis that threatens business continuity.
4. Group duties of Nichirei, subsidiaries (besides those in 1-3 above)1) To realize the mission and vision of the Nichirei Group, the Company, as a holding company, shall propose,
decide, and implement Group strategies, allocate business resources, conduct monitoring and risk
management for the entire Group, and fulfill the responsibilities of a publicly traded company.
2) As the CSR headquarters, the Company has a corporate staff division that supports the Board of Directors,
an internal auditing division that monitors the Group, as well as the Group R&D and quality assurance
divisions.
3) Each business company shall serve as an independent company (fulfilling the functions of planning,development, production sales, management, and administration), increase the independence of theirrespective organizations through their presidents, and adapt to the business environment to respond quickly
to market demands.
4) Transactions between the Company and its business companies shall be based on accounting principles, tax
laws, and other internal regulations.
5. Exclusion of antisocial forces
1) The Company, keenly aware of its corporate social responsibility, shall prohibit any submission to, or collusion
with, antisocial forces that threaten the order and safety of civil society, and shall resolutely respondthereto.
6. Audit & Supervisory Board Members and independence of employees
1) The Company shall establish a Group internal audit department, and maintain systems that allow Audit &Supervisory Board Members to execute audits more effectively and efficiently, including holding regularliaison conferences with Audit & Supervisory Board Members.
2) The Company shall assign specialist staff at the behest of the Audit & Supervisory Board. Personnel
assignments shall be decided by consultation between the Board of Directors and Audit & Supervisory
Board, with attention given to independence from directors and ensuring of the effectiveness of directives
from Audit & Supervisory Board Members.
7. Systems for reporting to Audit & Supervisory Board Members
1) The Board of Directors and employees shall report to Audit & Supervisory Board Members, without delay,
should they become aware of either a serious violation of laws or internal regulations in the execution of
their duties, or any facts that could, or do, have the potential to cause the Company substantial harm.
1522) Directors and employees shall report immediately, to Audit & Supervisory Board Members, decisions that
may seriously impact business or the organization, and the results of internal audits.
3) Directors, audit & supervisory board members, and employees of subsidiaries with knowledge of facts that
could have a serious impact on the Group’s internal controls, or persons who have received reports fromsuch persons, shall report such to Audit & Supervisory Board Members without delay.
4) The Company and its businesses shall protect people reporting to Audit & Supervisory Board Members, toensure that the reports do not lead to adverse treatment.
8. Ensuring compliance of Audit & Supervisory Board Members
1) To enable Audit & Supervisory Board Members to adequately perform their functions, the representative
director shall arrange for the Audit & Supervisory Board to receive regular reports on, for example, thestatus of business, quite apart from briefings on similar topics going to the Board of Directors.
2) The Board of Directors shall ensure that auditors attend important meetings regarding the Company’sbusiness to ensure it is appropriately conducted.
3) Once requested by the Audit & Supervisory Board Members, and unless a request is unreasonable, theCompany shall provide prompt advance payment, or reimbursement, for expenses incurred by the auditors
in the execution of their duties.

Basic Philosophy
The Nichirei Group is engaging in a variety of initiatives aimed at improving its corporate ethics by ensuring compliancewith the laws and social norms of all the countries in which it operates. Accordingly, the Group has created guidelines forproper employee behavior in line with laws, its internal regulations, and corporate ethics, as well as a code of conduct anda code of conduct casebook, which provides clear examples of appropriate behavior. These documents also include
information concerning matters related to the prevention of corruption that have been deemed important from theperspective of international compliance, including insider trading bans and the prohibition of engagement or trading with
antisocial forces. In addition to providing this information, the Group conducts employee compliance training aimed atensuring a more pervasive understanding of compliance management and a more universal compliance management
framework.

Code of Conduct
Nichirei Group Code of Conduct (Table of Contents, revised April 2014)
1. Compliance with laws and regulations concerning respect for human rights and labor
2. Environmental protection
3. Compliance with laws and regulations, and internal regulations
4. Management and preservation of the Company’s property
5. Prohibition of personal use of Company property
6. Prohibition of insider trading
7. Ensuring the reliability of financial information
8. Management and use of information
9. Prohibition of personal acts conflicting with the Company’s interests
10. Prohibition of unfair benefits given to, or received from, public officers or business partners
11. Prohibition of involvement in, or trade with, antisocial forces
12. Compliance with, reporting of, and consultations concerning, code of conduct

153

Management Principles

Code of Conduct

Corporate Governance Report (Only available in Japanese)

Sustainable Supply Chain Policy

Management System
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 this lineof thinking, compliance and anti-corruption initiatives are implemented company-wide, while the Board of Directors
oversees compliance with the Code of Conduct.
Specifically, to ensure that all employees comply with laws, regulations and Nichirei’s articles of incorporation, and act inkeeping with corporate ethics, Nichirei has formulated and distributes a Code of Conduct along with a collection of
examples of how the code is to be applied. Moreover, so that the principles and systems of compliance management
contained in the Code of Conduct and so on better permeate within the company, employees and new recruits are provided
training using a collection of examples on the Code of Conduct. By learning about the Code of Conduct based on concrete
examples, the aim is to educate and raise awareness for compliance among existing and new employees.
Internal Whistleblower Hotline and Consultation Service

In October 2003, the Company introduced an internal reporting and consultation hotline. This allows employees to report,
or seek advice on, actions that violate laws or company regulations, or that are ethically questionable. In FY2016, theCompany updated its internal whistleblower hotline system in response to the requirements of Japan’s new Corporate
Governance Code, which specifies that internal whistleblower hotline systems are to be independent from a company’s
management. To ensure that all employees are aware of the new hotline, the Company created and distributed
promotional posters for its workplaces and reminder cards for employees. In accordance with Company policy, all reports
received are relayed to top management by the administration office, which also conducts an investigation to confirm thefacts, implements corrective measures and provides feedback to the person who made the report (when not reported
anonymously). Anonymity is preserved to protect the identity of the person reporting, while the process is carefully
managed to ensure there is no retaliation against or adverse treatment of the person reporting by those who are thesubject of complaints.

154

Nichirei Hotline card

Number of Whistleblowing Cases, by TypeInitiatives
Educating Employees about the Code of Conduct to Ensure Compliance
The Group seeks to continue commanding trust, based on the high ethical standards of its board members and employees.
Following the April 2014 revision of our code of conduct, we included it and the Group management principles in theemployee handbook. In addition, a guidebook on the use of social media has been distributed to all employees and, on theGroup’s intranet, we publish a monthly series of slideshowstyle materials designed to help employees understand casestudies related to the code of conduct. In addition, the Nichirei Group has been offering e-learning sessions to educate andtrain employees, based on its inhouse educational rules. The Nichirei Group is committed to continue providing compliancetraining.

e-learning

155

Awareness-raising Activities for Anti-corruption and the Prohibition of Bribery, etc.
The Company is working to prevent anyone working for the Nichirei Group from engaging in acts of bribery involving public
officers or others by clarifying the basic matters they should comply with and by using the Bribery and Corruption
Prevention Manual to familiarize them with specific matters that require caution. Applicable laws and regulations include
not only those of Japan but also those of major related countries and regions, including the European Union, the UnitedStates, the United Kingdom and China, and they apply to all officers and employees of Group companies, regardless ofwhether those entities are in Japan or elsewhere.

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

Anti-corruption and Bribery

156

Stakeholder Engagement
Basic Philosophy
Basic Philosophy
As it engages in global business activities, the Nichirei Group recognizes the importance of communicating and maintaining
dialogue with its diverse stakeholders. The Group works to build corporate value by establishing long-term relationships oftrust while reflecting the expectations and concerns of stakeholders. It does so by fostering deeper mutual understanding,advancing various initiatives and proactively disclosing relevant information.

Stakeholder

Objective

Customers

Better customer
satisfaction andcorporate branding: tobe achieved throughprompt, appropriate
and sincere responses
to consumer requests
and feedback.

Issues recognized
Quality assurance for
products andMeans and methodof communication

Frequency

services

Customer Service
CenterRoutineProper delivery of
information

CustomerOnce a year

Supply of delicious
food and a richsatisfaction surveys

As necessary

Websites

As necessary

variety of meal
options

Social media

General Meetings ofShareholders

Shareholders andinvestors

Deeper understandingof the Company andhigher corporate
value: to be achieved
through timely andappropriate disclosure.

Maintaining andimproving corporate
value
Appropriate
distribution of profits
Timely andappropriate
disclosure of
information

Financial results
briefings

Once a year

Business information
sessions, facility
tours

Four times a year

Detailed interviews
with individual
investors in Japanand overseas
IR website

Once a year
As necessary
As necessary
Once a year
Twice a year

Integrated Report
Shareholder Report

Business partners

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

CSR procurement
Mutual development
achieved throughcustomer intimacy

157

CSR procurement
survey for suppliers
Meetings andseminars withparticipation frombusiness partners

Survey ongoingsince 2018
Once a year (held by
three operatingcompanies)

Stakeholder

Objective

Issues recognized

Means and methodof communication

Frequency

Establishment of aninternal reporting
centerCreation of an
employee assistanceand mental healthconsultation center
Labor–management
council

Employees

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

Available 24 hour
Available 24 hour
Twice a year

Occupational healthand safety

Health and safetycommittee

Once a month

Job satisfaction

Symposiums
involving(all worksites)

Workstyle reform
Health management

management andemployees
PR brochures
Intranet
Employee award
systemOnce a year
Four times a year
RoutineOnce a year
Once a year
Once a year

Employeesatisfaction survey
Employee stresschecksSocial contribution
activities
Participation in local

Local communities

Stable, enduringbusiness operations asa trusted andrespected company: tobe achieved bybuilding favorable
relations with local
communities.

Harmonious
coexistence withlocal communities
Preservation of local
environments
Educational activities
in local communities

eventsAs necessary

Volunteer activities

As necessary

Dietary education
activities (ethicalconsumption)

As necessary

Food factory anddistribution
warehouse tours
Internships
Sponsorship ofsporting events

158

As necessary
As necessary
As necessary
As necessary

Stakeholder

Objective

Issues recognized

Means and methodof communication

Frequency

TCFD Consortium
Japan Frozen
Food Association

Trade organizations,
NGOs and NPOs

Collaboration withother companies: tobe achieved throughparticipation inassociations and otherentities relating totrade organizations;resolution social issues
through collaborationand cooperation with
NGOs and NPOs in
Japan and abroad.

Human rights
Climate change
Food loss
Sustainableprocurement of foodJapan Association ofRefrigerated
Warehouses
Japan Fisheries
Association

As necessary
As necessary
As necessary
As necessary

World Wide Fund for

As necessary

NatureOnce a year

Roundtable on
Sustainable Palm Oil

As necessary

Caux Round TableJapan

As necessary

The Consumer
Goods Forum

Initiatives
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 thetime, including the production of crafts made using Pandanus boninensis leaves, and hula dancing by local groups. The
Nichirei Group wanted its facilities to be used for those pursuits, so it demolished the buildings and planted grass, for which
it cared.

UrabandaiContributions through Use of Company Resources > Urabandai

159

Food and Logistics Education Making Use of Business Characteristics
Nichirei Foods’ Food Education Activities
Nichirei Foods conducts various food education programs to promote a healthy future for all children. Food is indispensable
and intricately connected to our everyday life. Good eating habits nurture a healthy spirit and healthy body. In order thatchildren may grow up healthy, it is important that they understand the importance of food and are able to choose itproperly. Nichirei Foods conducts various initiatives designed to enable people to learn and think about food, and do related
hands-on work with children.

Nichirei Foods’ Food Education Activities (Only available in Japanese)
Food Development Center “KidZania Tokyo,” “KidZania Koshien”

KidZania Tokyo and KidZania KoshienChildren on a Factory TourThe concepts are See! Learn! Enjoy!, and Nichirei Foods employees are the teachers. They use videos and PowerPoint
slides to explain the frozen food manufacturing process to elementary school students, including the production of frozen
food products, Honkaku-Itamae Cha-Han (fried rice) and Imagawayaki. The program, which allows children to have fun
while learning, is full of frozen food quizzes and videos that they otherwise would never see, even on an actual tour. In thatway, the program teaches the students about Nichirei Foods’ 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 Foods’ 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.

160

“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 the Group
call Fresh Chicken Karumai. In the classes the Group presents easy-to-understand information that includes the following:
Iwate Prefecture boasts the nation's third-highest production of poultry, after Miyazaki and Kagoshima Prefectures; thecompany’s Junwakei breed of chicken is raised on feed rice produced in Karumai; and the guano from Junwakei chickens isused as an organic fertilizer for the feed rice. In addition to teaching the children about the production cycle, they areserved 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.

Visited Elementary and Junior High Schools in Karume-cho, Iwate Prefecture to Promote "Junwakei
chicken” (Only available in Japanese)

Logistics-related Education
Lectures Offered at Universities

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

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 apresentation on the Nichirei Logistics Group’s business, followed by discussions concerning food logistics and tours oflogistics centers. Students who attended told us that this opportunity had enabled them to understand the importance offood logistics, and that it increased their interest in logistics as a commercial activity to transport goods to customers. The
Group will continue to participate in tertiary-level courses, to further broaden the appeal of the logistics industry.

161

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 the prefecture) who participatedthe event named “Join an Expedition to Explore the Port of Sendai During the Summer Holidays” sponsored by the Ministryof 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 the summer vacation to deepen their understanding of thecompanies that use Sendai Port, including the role of "the Port". On the day of the event, after explaining the outline andbusiness contents of the center, we visited the premises of each temperature zone and conducted an experiment to freeze
wet towels in the freezer. By actually experiencing the distribution center, we had them deepen their understanding of food
distribution.

Activities to Reduce Food Loss
“Nichirei Food Loss Research Institute” Website
The Nichirei Group is working to address the social issue of food loss. Our activities include reexamining causes of food loss
from both scientific and supply chain standpoints to determine effective reduction approaches. We also propose reduction
methods using the cold chain function of the Nichirei Group.

Food Loss Research Institute (Only available in Japanese)

Food Bank
Since 2006, Nichirei Foods and Nichirei Logistics Group have supported the activities of the NPO Second Harvest Japan. So
far, we have donated a total of more than 20,000 cases of frozen foods to various welfare facilities, including foster homes,
mother and child support centers, and disability support facilities. In addition to delivering these products, we also provide
logistical support for frozen foods to ensure that the items can be consumed with peace of mind.

Process Leading Up to Delivery
162

Sampling Events at Employee Cafeterias
At employee cafeterias, Nichirei Foods holds sampling events through a unique initiative that uses products whose external
packaging has been crushed or otherwise damaged in logistics or distribution but are otherwise still fully suitable for
consumption. We have also endorsed the NO-FOODLOSS PROJECT of the Ministry of Agriculture, Forestry and Fisheries. In
support of this project, we are working to make donations that reduce food loss and to raise internal awareness.

Initiative website (Only available in Japanese)

Children’s Cafeterias
In 2021, Nichirei Foods began supporting children’s cafeterias with the cooperation of the NPO Japan Kodomo-Shokudo
Support Center Musubie, which provides such support all over Japan.

Support through Business Activities
Nichirei Foods Hagukumi Forest
Nichirei Foods’ Mori factory in Hokkaido began a partnership with the town of Mori in Kayabe District, Hokkaido to perform
forest maintenance on town-owned lands as part of the “Nichirei Hagukumi Forest” initiative. This initiative, ”Good for theforest!,” as part of the Group’s activities to help the forest, involves a plan to plant trees in a 1.2 hectare plot of land owned
by Mori, as well as plant and nurture 400 cherry blossom (Someiyoshino) trees, the town’s plant symbol, over ten years.
The employees at the Mori factory along with their families and the rest of the community participate as well, and theGroup is working to help the activity take root in the region.
The “Good for the forest!” conservation activity is spreading to other factories, with Kyurei working to restore the pinetrees of the Satsuki Matsubara area in Munakata City, Fukuoka Prefecture, and Nichirei Foods’ 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 Japan’s
Tohoku region in 2011, Nichirei Foods Inc. has organized cooking classes in temporary housing facilities. Even after large
numbers of people moved from those facilities, Nichirei Foods continued its support. Employees were sent schools to give
students a virtual experience of a factory tour. Using audio-video materials showing an actual production plant, theemployees gave the students easy-to-understand lessons about the processes involved in making frozen food products,
Nichirei Foods’ safety and security initiatives, and its fastidious manufacturing techniques. In 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.

163

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 toobtain 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 First and 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 the precautions, main points of quality
control, as well as the importance of immunostaining in pathological diagnosis through his own experiences. We would liketo continue contributing to the improvement of pathological research/diagnosis and medical education in Myanmar.

Support for Hospitality Guest House
There are over 500 incurable diseases of unknown original that affect children, and there are 200,000 children fighting
these illnesses. It is impossible to calculate the financial burden and mental anguish inflicted on them and their families.
The foundation A Dream A Day In Tokyo conducts activities to help give courage to children with major illnesses, reduce
their family’s anguish, and create happy memories during their trip to Tokyo. As an endorsee of the foundation’s aims, theNichirei Group provides support in the form of tours of Nichirei Foods and KidZania, and use of the Sukore Yukigaya training
center for accommodations.

Nichirei’s training center provides lodgings

164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

Nichirei Group Social Contribution Activities
Nichirei Group Social Contribution Activities (five Years)

Donations to Non-profit Organizations

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 thethree prefectures—Iwate, Miyagi, and Fukushima—hardest hit by the Great East Japan Earthquake of March 11, 2011. At
Nichirei Ladies, the official Ladies Professional Golfers’ Association of Japan tour held in June 2011, all entrance fees were
donated to the city and prefecture of Chiba.
In addition, after the Kumamoto earthquake in 2016, in addition to donating 10 million yen to Kumamoto Prefecture, we
responded 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 donatedto the Japanese Red Cross Society to assist with initial restoration efforts in areas heavily damaged by the disaster.
Fureai Fund Donations
The Nichirei Group’s 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 by natural disasters andother 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 “children’s cafeterias” toaid those in difficult circumstances and victims of bullying, etc. Nichirei also provides support for preparation expenses fordisaster relief to the Japanese Red Cross Society.
In FY2019, we contributed 310 million yen as the total amount of group social contributions(donations, etc.).

165

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 fundsupports nature conservation activities primarily in the developing areas of the Asia-Pacific region, as well as conservation
activities and the sustainable use of natural resources in order to maintain the preservation of Japan’s splendid naturalenvironment.
Eco-caps
At all workplaces of the Nichirei Group plastic bottle caps from PET bottles are collected to support the activities of NPOs
that sell them as plastic raw materials to recycling companies, thereby raising money to fund vaccines for children indeveloping countries. The sale of 800 caps brings in roughly 20 yen, which pays for a polio vaccine for one person. By
contrast, were the caps burned as garbage, 3,150 grams of CO₂ would be released per 400 caps, so recycling the caps also
helps reduce CO₂ emissions.
Participation in Table for Two
The Nichirei Group participates in Table for Two, an employee-participation social contribution activity that starts in theemployee cafeteria. The project involves adding 20 yen—the cost of a school lunch for one child in a developing country—
to the cost of the cafeteria food to make a food-support donation. Moreover, the foods that can provide this donation arelimited to healthy, low-calorie items, so that the program also plays a role in improving employee health. The program iscurrently conducted at two workplaces, the Nichirei Higashi Ginza Building and the Technology Development Center.

166

Report Archives
Report Archives
CSR Report
CSR Report 2021

PDF (Japanese)

CSR Report 2020

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

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)
167

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

168

ESG Navigation
ESG Navigation
Link to eachlocation

Promoting CSR Management in the Nichirei Group

President’s 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 Useof Resources
Environment

Social169

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 (Composition of
the Board of Directors and the Board of Company
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 Resolution170●

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 Conduct171

ESG Data
ESG Data
Environmental Data

Social Data

Corporate Governance Data

Environmental Data

Note: Fiscal years (FY) indicate years ended March 31.

Nichirei Group Mediumterm Environmental Plan
Targets (FY2020‒
FY2022)

Nichirei Group CO₂
Emissions

Nichirei Group Amountof Discharged Waste andRecycling Rates

Nichirei Group Material
Balance INPUT

Nichirei Group Material
Balance OUTPUT

Nichirei Group speciallycontrolled indutrial waste
emissions

Status of Environmentrelated Incidents, Legal
Violations

Solar Power Generation
and CO₂ Reduction

Management of Pollutant
Release and Transfer
Register (PRTR)
Substances

SOx Emissions■Nichirei Group Medium-term Environmental Plan Targets (FY2020‒FY2022)
Item

Contents

Reduction of CO₂
Emissions

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

Maintaining Waste
Nichirei Group Medium- Recycling Rate andterm Environmental
Controlling Waste
Discharging
Plan Targets (FY2020‒
FY2022)
Water Resource
Conservation

・Maintained waste recycling rate at over 99% at food plants anddistribution centers
・Reduce residue of material derived from animal and plant (food plants
in Japan)・In consideration of the environmental conditions surrounding water ineach community, we engage in water resource conservation throughefficient water usage aimed at sustainable water usage (food plants inJapan)Engaged in collecting data regarding the environment at overseas worksites■Nichirei Group CO₂ Emissions
Item

Unit

FY2014FY2017 FY2018

FY2019FY2020

FY2021

Fixed power emission coefficient *1

1,000 tons t-CO₂

229

228

226

228

225

223

Variable power emission coefficient *2

1,000 tons t-CO₂

229

280

269

260

241

232

Emissions intensity

1,000 tons t-CO₂

0.57

0.52

0.49

0.46

0.44

0.43

*1 Fixed power emission coefficient: The CO₂ emission intensity unit of 0.412 [t-CO₂/MWh] announced by the Federation of ElectricPower 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.

■Nichirei Group Amount of Discharged Waste and Recycling Rates
Item
Amount of discharged waste
Recycling Rates

Unit

FY2017FY2018FY2019FY2020

FY20211,000 tons

45.2

46.3

45.4

47.9

47.1

%

99.7

99.6

99.5

99.4

98.7

172

■Nichirei Group Material Balance INPUT
Item

Raw materials

Unit
Total

1,000
tons

185

188

195

200

Material

1,000
tons

167

170

177

181

Packaging materials

1,000
tons

18

18

18

19

5,109

5,078

5,107

5,079

Total

1,000 GJ
1,000
kWh

Purchased power

EnergyHeavy oilklKerosenekl

City gas

1,000m

3

3,335

3,319

2,609

1,926

1,850

200

191

173

192

195

6,705

6,923

7,142

9,036

9,328

tons

4,620

4,650

4,814

3,614

3,425

kl

467

461

402

322

273

Light oil (Companyowned vehicles)

kl

1,340

1,378

1,556

1,452

1,522

1,000
kWh

211

400

1,444

2,068

2,149

Nichirei Foods

1,000 GJ

1,716

1,726

1,761

1,759

1,793

Nichirei Fresh

1,000 GJ

179

169

173

172

174

Nichirei Logistics Group 1,000 GJ

3,129

3,098

3,089

3,046

2,966

Nichirei Biosciences

1,000 GJ

8

11

12

33

30

Others1,000 GJ

73

74

72

69

61

1,000m

3

3,931

4,084

4,117

4,028

3,929

1,000m

3

1,284

1,256

1,267

1,238

1,174

Industrial water

1,000m

3

877

917

907

897

916

Groundwater (wellwater)

1,000m3

1,770

1,911

1,943

1,893

1,839

Nichirei Foods

1,000m3

2,581

2,789

2,812

2,739

2,679

Nichirei Fresh3

1,000m

353

331

322

318

338

3

977

947

963

952

899

Clean water

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

447,574 443,480 447,277 444,335 439,135

Gasoline (Companyowned vehicles)

Total
Water

5,024

LGP

Solar power generation

Breakdown of energy (1,000 GJ) used
at each business company

FY2017 FY2018 FY2019 FY2020 FY2021

Nichirei Logistics Group 1,000m
Nichirei Biosciences3

1,000m

8

6

6

8

7

Others1,000m3

12

12

13

11

6

* Total figures may differ due to rounding.

173

■Nichirei Group Material Balance OUTPUT
Item

Unit

Waste

Breakdown of discharged waste (tons)
at each business company

Atmospheric system

Breakdown of CO₂ emissions (tons) ateach business company

Amount of Discharged
Waste

1,000
tons

45.2

46.3

45.4

47.9

47.1

Recycle volume

1,000
tons

45.0

46.1

45.2

47.6

46.5

Volume of waste forfinal disposal *1

1,000
tons

0.2

0.2

0.2

0.3

0.6

Nichirei Foods

tons

21,29021,904

18,155

21,561

21,145

Nichirei Freshtons

11,453

11,426

13,973

13,60913,887

Nichirei Logistics
Group

tons

12,45912,905

13,236

12,666

11,962

Nichirei Biosciences

tons

37

46

44

72

103

Others

tons

ー

ー

ー

ー

ー

CO₂ *2tons

SOx *3

tons

4

4

3

3

2

Nichirei Foods

tons

93,61393,07690,717

84,57984,439Nichirei Fresh

tons

9,914

9,281

9,376

9,336

8,936

Nichirei Logistics
Group

tons

Nichirei Biosciences

tons

Others

tons

574

568

1,561

1,418

3,503

3,282

2,872

1,000m

2,525

2,467

2,421

2,398

2,461

Sewer system

3

1,000m

1,577

1,522

1,464

1,447

1,478

Public water area
(river etc.)

1,000m3

948

945

957

951

983

tons

46

48

48

49

52

BOD

tons

24

23

24

23

40

1,000m

3

1,922

1,758

1,751

1,752

1,798

Nichirei Fresh

1,000m

3

234

328

308

309

325

Nichirei Logistics
Group

1,000m3

349

362

343

317

308

Nichirei Biosciences

1,000m3

8

6

6

8

6

3

12

12

14

12

24

Nichirei Foods

Others
*

538

3,909

COD *4

Breakdown of drainage (1,000 m ) at
each business company

171,652 166,509 155,815 142,477 134,035

3,747

Drainage load
*43279,465 273,348 259,980 241,235 231,700

3Drainage

Water system

FY2017 FY2018 FY2019 FY2020 FY2021

1,000mTotal figures may differ due to rounding.

*1 Within waste discharged, the volume of waste directly disposed of in landfills and simply incinerated not to be used as energy
source.
*2 Calculations based on laws related to global warming countermeasures.
*3 Measurement implemented for facilities emitting soot and smoke. Does not include vehicle emissions*4 Calculates amount of emissions only in cases where drainage concentration measurements are conducted.

■Nichirei Group specially controlled indutrial waste emissions
Unit FY2017 FY2018 FY2019 FY2020 FY2021
Special controlled industrial waste emissions ("Flammable waste oil"and "Strong acid/strong alkali") etc. classified as industrial waste
due to danger and toxicity)

kg

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 as energy
source.
*2 Calculations based on laws related to global warming countermeasures.
*3 Measurement implemented for facilities emitting soot and smoke. Does not include vehicle emissions*4 Calculates amount of emissions only in cases where drainage concentration measurements are conducted.

174

4.3

■Status of Environment-related Incidents, Legal Violations
FY2018FY2019FY2020

FY2021

Domestic

0

0

0

0

Overseas

0

0

0

0

■Solar Power Generation and CO₂ Reduction
Unit
Power generation

FY2019FY2020

FY2021

Mwh

1,444

2,068

2,149

t

765

1,003

986

CO₂ reduction■Management of Pollutant Release and Transfer Register (PRTR) Substances
Unit FY2017 FY2018 FY2019 FY2020 FY2021
Substances subject to reporting under the PRTR Law* (handled inquantities of 1 ton or more)

tons

0

0

0

0

0

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

■SOx Emissions
Unit
SOx Emissions

FY2017tons

FY20184FY20194

FY20203

FY2021
3

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

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
Notes:
1. Fixed power emission coefficient: The CO₂ emission intensity unit of 0.412 [t-CO₂/MWh] announced by the Federation of ElectricPower Companies of Japan in FY2010, used nationwide.
2. Variable power emission coefficient: Power conversion coefficient used by power companies in each fiscal year utilized at each
worksite.
3. Scope of power emission intensity: Nichirei Foods (Nichirei Foods-operated factories and affiliated factories in Japan) and Nichirei
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.

175

Social Data

Note: Fiscal years (FY) indicate years ended March 31.

Number of employees

Percentage of Noncompany Employees

Average Number ofYears Employed

Female Managers Ratio

Average age

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 of Days
and Acquisition Rate

Employees Using Time
Off for Childrearing

Employees Using Time
Off for Caregiving

Number of Work-Related
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 and number ofparticipants

Quality Assurance(number of audits,
certifications, andtraining hours)

Percentage of receiving a
Full Medical Examination
after Periodic Health
Checkups

Donations to Non-profit
Organizations

Personal Information
Protection Leaks, etc.

Number of Violations ofLaws and Regulations inAdvertisements/Publicity
and Labelinge-learning

Health Manager■Number of employees
Coverage

Item

Unit

Executives and employees
total

NumberofpeopleFY2017

FY2020

FY2021

6,073

6,002

5,943

5,994

3,746

3,792

3,748

3,729

3,753

2,341

2,281

2,254

2,214

2,241

62

65

62

62

61

Male

60

63

60

60

58

Female

2

2

2

2

3

3,755

3,780

3,782

3,841

3,903

Male

2,800

2,786

2,789

2,779

2,787

Female

955

994

993

1,062

1,116

【Number of employees inmanagement positions】

1,285

1,293

1,309

1,335

1,362

1,206

1,205

1,216

1,215

1,222

79

88

93

120

140

2,470

2,487

2,473

2,506

2,541

Male

1,594

1,581

1,573

1,564

1,565

Female

876

906

900

942

976

Number of staff other thanemployees

2,270

2,228

2,158

2,040

2,030

Male

886

943

899

890

908

Female

1,384

1,285

1,259

1,150

1,122

Executives and employees

273

277

252

252

254

Male
FemaleNumber of executives
Breakdown

Number of company
employees
Breakdown

Breakdown

Male
Female【Number of generalemployees】
Breakdown

Breakdown
Nichirei

FY2019

6,087

Breakdown

NichireiGroup total

FY2018176

holding
company

total
Male

157

156

148

153

151

Female

116

121

104

99

103

20

21

19

19

19

Male

18

19

17

17

17

Female

2

2

2

2

2

205

213

187

214

218

Male

125

128

122

123

124

Female

955

994

65

91

94

【Number of employees inmanagement positions】

100

111

112

116

112

Male

79

85

85

87

85

Female

21

26

27

29

27

105

102

75

98

106

Male

46

43

37

36

39

Female

59

59

38

62

67

Number of staff other thanemployees

48

43

46

19

17

Male

14

9

9

13

10

Female

34

34

37

6

7

Executives and employees
total

3,126

3,133

3,054

3,010

3,023

Male

1,799

1,866

1,821

1,816

1,834

Female

1,327

1,267

1,233

1,194

1,189

Breakdown

Number of executives
Breakdown

Number of company
employees
Breakdown

Breakdown【Number of generalemployees】
Breakdown

Breakdown

Breakdown

Number of executives

13

12

12

11

10

Male

13

12

12

11

9

Female

0

0

0

0

1

1,541

1,535

1,524

1,505

1,528

Male

1,155

1,146

1,134

1,114

1,118

Female

386

389

390

391

410

【Number of employees inmanagement positions】

533

534

532

525

536

Male

499

498

497

487

494

Female

34

36

35

38

42

1,008

1,001

992

980

992

Male

656

648

637

627

624

Female

352

353

355

353

368

Number of staff other thanemployees

1,572

1,586

1,518

1,494

1,485

Male

631

708

675

691

707

Female

941

878

843

803

778

Executives and employees
total

313

308

315

315

319

Male

228

228

228

225

223

Female

85

80

87

90

96

7

9

9

10

10

Male

7

9

9

10

10

Female

0

0

0

0

0

Breakdown

Number of company
employees
Breakdown
Nichirei
Foods

Breakdown【Number of generalemployees】
Breakdown

Breakdown
Nichirei
Fresh

Breakdown

Number of executives
Breakdown

177

Number of company
employees

254

252

256

267

271

Male

203

200

197

200

198

Female

51

52

59

67

73

【Number of employees inmanagement positions】

151

149

149

155

158

Male

146

144

142

143

143

Female

5

5

7

12

15

103

103

107

112

113

Male

57

56

55

57

55

Female

46

47

52

55

58

Number of staff other thanemployees

52

47

50

38

38

Male

18

19

22

15

15

Female

34

28

28

23

23

Executives and employees
total

2,260

2,224

2,252

2,226

2,253

Male

1,504

1,479

1,488

1,466

1,475

Female

756

745

764

760

778

17

18

16

16

16

Male

17

18

16

16

16

Female

0

0

0

0

0

1,687

1,701

1,738

1,769

1,798

Male

1,270

1,262

1,287

1,289

1,294

Female

417

439

451

480

504

【Number of employees inmanagement positions】

466

464

479

499

513

Male

454

451

464

469

470

Female

12

13

15

30

43

1,221

1,237

1,259

1,270

1,285

Male

816

811

823

820

824

Female

405

426

436

450

461

Number of staff other thanemployees

556

505

498

441

439

Male

217

199

185

161

165

Female

339

306

313

280

274

Executives and employees
total

115

131

129

140

145

Male

58

63

63

69

70

Female

57

68

66

71

75

5

5

6

6

6

Male

5

5

6

6

6

Female

0

0

0

0

0

68

79

77

86

88

Male

47

50

49

53

53

Female

21

29

28

33

35

【Number of employees inmanagement positions】

35

35

37

40

43

Breakdown

Breakdown【Number of generalemployees】
Breakdown

Breakdown

Breakdown

Number of executives
Breakdown

Number of company
employees
Nichirei
Logistics
Group

Breakdown

Breakdown【Number of generalemployees】
Breakdown

Breakdown
Nichirei
Biosciences

Breakdown

Number of executives
Breakdown

Number of company
employees
Breakdown

178

Breakdown

Male

28

27

28

29

30

Female

7

8

9

11

13

33

44

40

46

45

Male

19

23

21

24

23

Female

14

21

19

22

22

Number of staff other thanemployees

42

47

46

48

51

Male

6

8

8

10

11

Female

36

39

38

38

40

【Number of generalemployees】
Breakdown

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 (FY2021)

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

12 Nichirei Logistics Kyushu

13 Kyokurei Operation

15 Nichirei Biosciences■Percentage of Non-company Employees
FY2017FY2018FY2019FY2020

FY2021

Number of company employees

3,755

3,780

3,782

3,841

3,903

Number of non-company employees

2,270

2,228

2,158

2,040

2,030

Percentage of non-company employees (%)

37.7

37.1

36.3

34.7

34.2

FY2019FY2020

FY2021■Female Managers Ratio
Coverage

Unit

FY2017FY2018

Nichirei Group total

6.1

6.8

7.1

9.0

10.3

Nichirei holding company

21.0

23.4

24.1

25.0

24.1

6.4

6.7

6.6

7.2

7.8

3.3

3.4

4.7

7.7

9.5

Nichirei Logistics Group

2.6

2.8

3.1

6.0

8.4

Nichirei Biosciences

20.0

22.9

24.3

27.5

30.2

Nichirei Foods
Nichirei Fresh%* Applicability: Employees

179

■Average age
Coverage

Item

Unit

FY2017FY2018FY2019FY2020

FY2021

NichireiGroup total

Male

41.6

41.9

42.1

42.3

42.5

Female

39.5

39.6

39.8

39.9

40.0

Nichirei
holdingcompany

Male

43.7

43.3

44.1

44.2

44.1

Female

41.1

41.9

43.1

44.5

44.6

Nichirei
Foods

Male

41.8

42.3

42.5

42.8

43.1

40.8

41.2

41.5

41.5

41.5

42.8

42.9

42.6

42.7

42.9

Female

42.6

42.5

41.2

41.5

41.4

Nichirei
Logistics
Group

Male

41.1

41.2

41.6

41.6

41.8

Female

37.6

37.6

37.9

37.8

37.9

Nichirei
Biosciences

Male

40.6

40.2

40.7

40.9

40.7

Female

37.7

36.3

36.7

36.2

36.6

Nichirei
FreshFemaleBreakdown

Male

Age

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

■Average Number of Years Employed
Coverage

Item

Unit

FY2017FY2018FY2019FY2020

FY2021

NichireiGroup total

Male

16.4

16.7

16.7

17.0

17.3

Female

15.1

15.3

15.7

15.3

15.4

Nichirei
holdingcompany

Male

18.3

18.2

19.1

19.0

19.0

Female

13.6

14.4

18.5

15.8

16.8

Nichirei
Foods

Male

16.8

17.3

17.7

18.0

18.4

15.8

16.3

16.7

16.8

16.8

18.7

18.8

18.4

18.4

18.7

Female

20.9

20.5

18.6

18.0

17.4

Nichirei
Logistics
Group

Male

15.7

15.9

15.9

15.9

16.1

Female

14.1

14.1

14.3

13.9

14.0

Nichirei
Biosciences

Male

14.9

14.2

15.3

15.2

15.0

Female

13.4

11.9

12.1

11.7

12.3

Nichirei
Fresh

Breakdown

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 tofactors including the merger or separation of the company to which they are assigned and employee promotions.

180

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

Item

Unit

FY2017

New graduates
NichireiGroup total

Breakdown

Breakdown

104

117

Male

57

54

46

49

63

Female

35

47

42

55

54

68

45

80

113

61

Male

42

36

60

52

36

Female

26

9

20

61

25

5

3

0

4

4

1

2

0

4

3

Male
Female

4

1

0

0

1

22

4

2

37

5

Male

4

2

2

5

2

Female

18

2

0

32

3

25

27

31

33

37

Male

15

18

20

14

19

Female

10

9

11

19

18

2

8

13

16

28

2

1

6

11

16

0

1

7

5

12

9

10

10

9

11

6

7

6

6

6

3

3

4

3

5

1

0

5

11

3

Male

1

0

1

2

0

Female

0

0

4

9

3

New graduates
Nichirei
Foods

Breakdown
Mid-career
Breakdown

Male
FemaleNew graduates
Nichirei
Fresh

Breakdown

Male

NumberofpeopleFemaleMid-career
Breakdown
New graduates

Nichirei
Logistics
Group

Breakdown

47

53

42

50

58

Male

32

24

19

22

32

Female

15

29

23

28

26

41

32

60

46

25

Male

34

26

51

31

18

Female

7

6

9

15

7

6

8

5

8

7

Male

3

3

1

3

3

Female

3

5

4

5

4

2

1

0

3

0

Male

1

1

0

3

0

Female

1

0

0

0

0

Mid-career
Breakdown
New graduates

Nichirei
Biosciences

Breakdown
Mid-career
Breakdown

FY202188

Mid-career
Breakdown

FY2020101

New graduates
Nichirei
holdingcompany

FY201992

Mid-career
Breakdown

FY2018* Applicability: Employees

181

■Number of Resignations/Resignation Rate/Reasons for Resignation
Coverage

NichireiGroup total

Item

Unit

FY2017

146

159

141

Retirement

52

48

64

65

59

Personal
circumstances

65

69

74

84

63

Company
circumstances

1

0

0

0

0

Others

13

20

8

10

19

2.0%

2.3%

2.1%

2.4%

2.1%

9

9

12

10

12

Retirement

2

3

6

3

5

Personal
circumstances

5

4

5

6

5

Company
circumstances

0

0

0

0

0

Others

2

2

1

1

2

3.2%

2.8%

3.0%

3.1%

3.1%

52

43

57

59

50

Retirement

22

17

30

29

21

Personal
circumstances

26

23

26

26

24

Company
circumstances

0

0

0

0

0

4

3

1

4

5

1.9%

1.7%

1.7%

1.9%

1.9%

9

10

14

9

13

3

2

7

4

3

Personal
circumstances

3

7

4

5

5

Company
circumstances

0

0

0

0

0

Others

3

1

3

0

5

2.3%

3.1%

2.7%

1.8%

3.6%

Breakdown by
reasonBreakdown by
reasonNumber of Resignations

Breakdown by
reasonOthersResignation rate
Number of Resignations
Retirement
Breakdown by
reasonNumberofpeopleResignation rate
Number of Resignations

Nichirei
Logistics
Group

FY2021

137

Resignation rate

NichireiFresh

FY2020131

Number of Resignations

Nichirei
Foods

FY2019Number of Resignations

Resignation rate

Nichirei
holdingcompany

FY2018

Breakdown by
reason

59

72

60

74

63

Retirement

25

25

21

29

29

Personal
circumstances

29

35

36

41

27

Company
circumstances

1

0

0

0

0

Others

4

12

3

4

7

2.0%

2.7%

2.3%

2.5%

1.9%

2

3

3

7

3

Retirement

0

1

0

0

1

Personal
circumstances

2

0

3

6

2

Company
circumstances

0

0

0

0

0

Others

0

2

0

1

0

2.7%

2.6%

3.6%

8.1%

2.2%

Resignation rate
Number of Resignations

Nichirei
Breakdown by
Biosciences reason

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

182

■Number of Employees Rehired After Retirement
Coverage

Unit

FY2017FY2018FY2019FY2020

FY2021

Nichirei Group total

45

44

59

57

51

Nichirei holding company

2

3

5

3

5

Nichirei Foods

19

14

28

25

16

3

2

7

3

3

Nichirei Logistics Group

21

24

19

26

26

Nichirei Biosciences

0

1

0

0

1

Ref. Number of employees who retired group total

52

48

64

65

59

Nichirei Fresh

Number of people* 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

Unit

Nichirei Group total

FY2017%FY20182.62

FY20192.50

FY20202.56

FY20212.75

2.80* Legal employment rate of 2.0%.
* 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

Item

Unit FY2017 FY2018 FY2019 FY2020 FY2021

Total

2,026

2,025

1,997

1,977

1,975

Official working hours-Hours of vacation time

1,804

1,801

1,780

1,758

1,767

Hours worked outside official working hours

222

225

217

219

208

1,943

1,906

1,905

1,899

1,949

Nichirei holding company Official working hours-Hours of vacation time

1,740

1,729

1,718

1,724

1,754

Hours worked outside official working hours

203

176

187

175

196

Total

2,007

2,020

1,998

2,005

2,011

Official working hours-Hours of vacation time

1,791

1,790

1,772

1,758

1,768

216

230

226

247

243

1,972

1,981

1,948

1,948

1,929

Official working hours-Hours of vacation time

1,796

1,795

1,770

1,754

1,759

Hours worked outside official working hours

176

185

178

194

170

Total

2,061

2,052

2,014

1,970

1,958

Official working hours-Hours of vacation time

1,826

1,821

1,796

1,763

1,771

Nichirei Group total

Total

Nichirei Foods

Hours worked outside official working hours
Total
Nichirei Fresh

Nichirei Logistics Group

Hours worked outside official working hours
Nichirei Biosciences

hours

235

231

218

207

187

Total

2,024

1,980

1,954

1,882

1,901

Official working hours-Hours of vacation time

1,761

1,749

1,736

1,716

1,754

Hours worked outside official working hours

263

232

218

166

148

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

183

■Annual Paid Vacation: Average Number of Days and Acquisition Rate
Coverage
Nichirei Group total
Nichirei holding company
Nichirei Foods
Nichirei Fresh
Nichirei Logistics Group
Nichirei Biosciences

Item

Unit

FY2017FY2018FY2019Average days acquired

Days

5.5

6.6

8.0

10.2

11.0

Acquisition rate

%

28.5

34.8

41.8

53.4

59.7

Average days acquired

Days

10.9

14.3

15.1

14.8

13.2

Acquisition rate

%

58.5

76.9

78.0

77.1

71.7

Average days acquired

Days

6.4

7.4

8.3

10.2

10.8

Acquisition rate

%

33.0

37.9

42.7

52.4

57.2

Average days acquired

Days

6.8

7.9

9.9

11.6

12.6

Acquisition rate

%

35.5

41.2

51.9

60.9

69.2

Average days acquired

Days

3.6

4.6

6.5

9.3

10.6

Acquisition rate

%

19.2

24.8

34.6

49.3

58.7

Average days acquired

Days

9.5

12.6

12.5

14.2

11.7

Acquisition rate

%

51.3

70.7

69.0

79.4

69.3

FY2020

FY2021* 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
Nichirei Group total
Nichirei holding company
Nichirei Foods

Item

Nichirei Biosciences

FY2018FY2019FY2020

FY2021

0

2

1

2

2

Female

44

34

42

48

31

Male

0

2

0

1

0

Female

4

1

2

6

3

Male

0

0

1

1

1

20

17

14

17

14

0

0

0

0

1

Female

3

0

2

1

2

Male

0

0

0

0

0

Female

15

15

20

22

11

Male

0

0

0

0

0

Female

2

1

4

2

1

FY2018FY2019Male

Nichirei Logistics GroupFY2017

Male

FemaleNichirei Fresh

Unit

Number of people* Applicability: Employees（includes full-time employees）* From FY2015, includes employees taking maternity leave■Employees Using Time Off for Caregiving
Coverage

Unit

FY2017

FY2020

FY2021

Nichirei Group total

1

0

3

2

2

Nichirei holding company

0

0

0

0

0

1

0

3

2

1

0

0

0

0

0

Nichirei Logistics Group

0

0

0

0

1

Nichirei Biosciences

0

0

0

0

0

FY2017FY2018FY2019Nichirei Foods

Number of people

Nichirei Fresh* Applicability: Employees（includes full-time employees）■Number of Work-Related Accidents at Food Plants
Coverage
Food Plants

Item
Number of lost time injuries
Number of days of inactivity

Unit
Case

17

34

34

29

18

12

11

16

* 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

184

FY2020

FY2021

■Number of occupational deaths
Coverage

Item

Unit FY2017 FY2018 FY2019 FY2020 FY2021

Regular employees
Nichirei Group
total

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

Case

-

0

1

0

0

-

0

0

0

0

■General regular health checkup rate
Coverage

Unit

FY2017FY2018FY2019FY2020

FY2021

Nichirei Group total

99.5

99.8

100

100

100

Nichirei holding company

99.6

100

100

100

100

Nichirei Foods

99.7

99.9

100

100

100

Nichirei Fresh

100

100

100

100

100

Nichirei Logistics Group Inc.

100

100

100

100

100

Nichirei Biosciences

100

100

100

100

100

Nichirei Logistics Hokkaido, Inc.

100

98.3

100

100

100

Nichirei Logistics Tohoku, Inc.

100

100

100

100

100

100

100

100

100

100

Kyokurei Inc

100

100

100

100

100

Nichirei Logistics Tokai, Inc.

99.1

100

100

100

100

Nichirei Logistics Kansai, Inc.

99.2

100

100

100

100

Nichirei Logistics Kanto, Inc.

％

Nichirei Logistics Chushikoku, Inc.

100

100

100

100

100

Nichirei Logistics Kyushu, Inc.

98.7

99.3

100

100

100

NK Trans Inc.

96.7

99.7

100

100

100

Logistics Network Inc.

99.6

99.8

100

100

100

98

99.4

100

100

100

Nichirei Logistics Engineering Inc.
* Covered employees insured by the Nichirei Health Care Association(Employees who joined the company on or after April 2 of the current fiscal year, employees working overseas, employees on
secondment in Japan, employees on leave, and employees receiving pre-employment medical examinations are excluded from the
population).

■Stress Check Coverage
Coverage
Nichirei Group total

Unit

FY2017%-FY201889.2

185

FY201990.1

FY202089.6

FY2021

90.8

■New Graduate Hire Turnover Status
Coverage

Joined Company in
FY2017

Joined Company in
FY2018

Nichirei Group total

Turnover (number ofpeople)Item

Joined Company in
FY2019Joined Company in
FY2020Joined Company in
FY2021

Nichirei holding
company
Joined Company in
FY2017

Joined Company in
FY2018Joined Company in
FY2019Joined Company in
FY2020Turnover rate(%)

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

2

2.3%

End of second
year

5

5.7%

End of third
year

11

12.5%

End of firstyear%

End of second
year%

End of thirdyear%

End of firstyear%

End of second
year%

End of thirdyear%

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 firstyear%

End of second
year%

End of thirdyear%

End of firstyear%

End of second
year%

End of third%
186

Number of
hires

92

101

88

5

3

0

year

Joined Company in
FY2021Joined Company in
FY2017

Joined Company in
FY2018

Nichirei Foods

Joined Company in
FY2019Joined Company in
FY2020Joined Company in
FY2021

Nichirei Fresh
Joined Company in
FY2017

Joined Company in
FY2018Joined Company in
FY2019Joined Company in

End of firstyear%

End of second
year%

End of thirdyear%

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

1

3.2%

End of second
year

2

6.5%

End of third
year

5

16.1%

End of firstyear%

End of second
year%

End of thirdyear%

End of firstyear%

End of second
year%

End of thirdyear%

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

0

0.0%

End of second
year

0

0.0%

End of third
year

0

0.0%

End of first

%
187

25

27

31

9

10

10

FY2020

Joined Company in
FY2021Joined Company in
FY2017

Joined Company in
FY2018

Nichirei Logistics
Group

Joined Company in
FY2019Joined Company in
FY2020Joined Company in
FY2021

Nichirei Biosciences
Joined Company in
FY2017

Joined Company in
FY2018Joined Company in
FY2019year
End of second
year%

End of thirdyear%

End of firstyear%

End of second
year%

End of thirdyear%

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

1

2.4%

End of second
year

2

4.8%

End of third
year

4

9.5%

End of firstyear%

End of second
year%

End of thirdyear%

End of firstyear%

End of second
year%

End of thirdyear%

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%

End of first
year

0

0.0%

End of second

1

20.0%

188

47

53

42

6

8

5

year
End of third
year

Joined Company in
FY2020Joined Company in
FY20212

40.0%

End of firstyear%

End of second
year%

End of thirdyear%

End of firstyear%

End of second
year%

End of thirdyear%* Applicability: Employees■Nichirei Group Main education and training
General employees

Managers

Officers

Training by
rank*New employees training*1st to 3rd year employees followup 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 executive
officers training*Management training*Coaching training■Nichirei Group Education time and number of participants
Training by rank and purpose

Education time (cumulative total)

Number of participants (cumulative total)

FY201845,6491,379

FY201949,7301,699

FY202047,1901,596

FY2021

37,201

1,429

Total

179,797

6,103

189

■e-learning
Numberof
Subjects

FY2018FY2019ImpleNumber
Numbermenof
oftationPeopleSubjects
Rate

ImpleImpleImpleNumber
Number Number
Number Number
menmenmenof
of
of
of
of
tationtationtationPeopleSubjects People
Subjects People
Rate
Rate
Rate

FY2020

FY2021

Ensuring Food
Quality Hygiene and
Safety

5,319

5,062

95.2%

-

-

-

-

-

-

5,619

5,302

94.4%

Internal Control

5,259

5,024

95.5%

5,247

5,080

96.8%

5,435

5,088

93.6%

5,643

5,247

93.0%

Personal
Information
Protection Law

5,257

4,810

91.5%

5,311

4,973

93.6%

5,381

5,121

95.2%

5,645

5,347

94.7%

Environment

5,241

5,036

96.1%

5,234

5,016

95.8%

5,396

5,035

93.3%

-

-

-

Insider

5,242

5,022

95.8%

-

-

-

5,358

4,904

91.5%

5,649

5,361

94.9%

Competition Law
Compliance andAnti-bribery

5,216

5,006

96.0%

5,308

5,005

94.3%

5,357

5,057

94.4%

-

-

-

Intellectual Property

5,232

5,053

96.6%

5,308

5,037

94.9%

5,357

5,050

94.3%

5,659

5,324

94.1%

Individual Number

5,258

4,948

94.1%

-

-

-

-

-

-

-

-

-

Power Harassment

5,220

4,943

94.7%

-

-

-

-

-

-

-

-

-

Whistleblower
System

5,226

5,137

98.3%

-

-

-

-

-

-

-

-

-

Information Security

5,204

5,114

98.3%

5,214

5,115

98.1%

5,362

4,993

93.1%

5,595

5,352

95.7%

Harassment

-

-

-

5,356

5,166

96.5%

5,367

5,008

93.3%

5,680

5,421

95.4%

Quality Assurance

-

-

-

5,308

5,178

97.6%

5,403

5,032

93.1%

-

-

-

Health Literacy

-

-

-

5,320

4,988

93.8%

5,403

5,047

93.4%

5,681

5,409

95.2%

Whistleblower andConsultation System

-

-

-

5,256

4,901

93.2%

5,471

4,862

88.9%

5,618

5,282

94.0%

Working Hours

-

-

-

-

-

-

5,381

5,101

94.8%

5,645

5,363

95.0%

Stress Check

-

-

-

-

-

-

5,358

4,948

93.1%

-

-

-

Health Information

-

-

-

-

-

-

-

-

-

5,649

5,371

95.1%

Anti-bribery

-

-

-

-

-

-

-

-

-

5,655

5,228

92.4%

SDGs

-

-

-

-

-

-

-

-

-

5,659

5,304

93.7%

■Quality Assurance (number of audits, certifications, and training hours)
Department
in Charge

FY2018Domestic

Quality
Assurance
Audits

FY2019FY2020

FY2021

Overseas

Domestic

Overseas

Domestic

Overseas

Domestic

Overseas

156

7

66

38

52

20

40

10

Nichirei
Foods
Quality
Assurance
Department

30

4

26

20

6

5

16

6

Nichirei
Logistics Group(Domestic/
Overseas)

Nichirei
Logistics
Group
Quality and
SafetyManagement
Department

112

-

24

0

34

-

19

-

Nichirei Fresh(Domestic/
Overseas)

Nichirei
Fresh
Quality
Assurance
Department

7/7(7/8:Onecase is apoultry
farm,so no
audit wasperformed.)

11/13

10

17

9

15

5

4

Number ofGroup Audits
per year(Domestic/
Overseas)

Quality
Assurance
Department

Nichirei Foods(Domestic/
Overseas)

190

Nichirei
Bioscience(Domestic/
Overseas)

Nichirei
Bioscience
Quality
Assurance
Department

Number of
ISO9001
Certifications

0

7

1

3

0

0

0

100%
(=38/38)of theplan

87%(=52/60)of theplan

80%(=20/25)of theplan

58%(=40/69)of the plan28%(=10/36)of theplanGroup Annual
Implementation
Rate
Quality(vs. plan)
Assurance(Office
Department
coveragedomestic/
overseas)

100%
implementation of
the plan88%(=15/17)of the plan99%(=67/68)of the plan
*One BIO
case wasdelayedfrom
Novemberto April ofthefollowing
year dueto amanufacturing
delay.

Group Annual
Implementation
Rate(ActualQuality
Assurance
number)
Department(Officecoveragedomestic/
overseas)38%7%（157/408） （15/210）

18%(67/370)20%(38/189)17%(52/307)11%(20/180)13%(40/305)6%(10/172)

Nichirei Foods(Domestic/
Overseas)

Nichirei
Foods
Quality
Assurance
Department

100%
100%(4/4)(30/30)
/49
/61

100%
(26/26)/61

100%(20/20)/49100%(6/6) /53

100%
(16/38)/52(5/5) /43

(6/20)/43

Nichirei
Logistics
Group(Domestic/
Overseas)

Nichirei
Logistics
Group
Quality and
SafetyManagement
Department

100%(112/112)
/112

-

100%
(24/24)
/110

-

87%
(34/39)/115-(19/19)/117-

Nichirei Fresh(Domestic/
Overseas)

Nichirei
Fresh
Quality
Assurance
Department

100%(7/7)/222

85%(11/13)/158

100%(10/10)/189

100%(17/17)
/139

100%
(9/9)
/129

83%
(15/18)/135(5/8) 127

(4/14)/126

Nichirei
Bioscience(Domestic/
Overseas)

Nichirei
Bioscience
Quality
Assurance
Department

100%(7/7)/13- (0/0) /3

75%(6/8)/10100%(1/1) /1

71%(5/7)/100%(0/2)/2(0/4) /9(0/2) /3

Quality Assurance Related Data
Number of certifications as of the end of
March of each fiscal year
HACCP
(Food
HygieneManagement
System)7

Number of Offices Acquired/Number of Offices of Consolidated Subsidiaries in Japan

Nichirei Foods

13/15

14/15

14/15

15/15

Nichirei Fresh

6/7

7/7

7/7

7/7

Number ofGroup
Certifications(Domestic/
Overseas)

Quality
Assurance
Department

126/135

3

Nichirei Foods(Domestic/
Overseas)

Nichirei
Foods
Quality
Assurance
Department

13/15

3

191

3/15

3/5

3/15

3/5

3/15

2/5

ISO14001
andISO13485
Certifications

FSSC22000
ISO22000
Number of
SQF
Certifications

Nichirei
Logistics
Group(Domestic/
Overseas)

Nichirei
Logistics
Group
Quality and
SafetyManagement
Department

105/112-104/116-

81/115-83 /117-

Nichirei
Fresh(Domestic/
Overseas)

Nichirei
Fresh
Quality
Assurance
Department

8/8

-

7/8

-

5/8

-

5/8

-

Nichirei
Bioscience(Domestic/
Overseas)

Nichirei
Bioscience
Quality
Assurance
Department

-

-

-

-

-

-

-

-

Number ofGroup
Certifications(Domestic/
Overseas)

Quality
Assurance
Department

13/17

2

Nichirei
Foods(Domestic/
Overseas)

Nichirei
Foods
Quality
Assurance
Department

11/15

2

11/15

2/5

11/15

2/5

11/15

2/5

Nichirei
Logistics
Group(Domestic/
Overseas)

Nichirei
Logistics
Group
Quality and
SafetyManagement
Department

-

-

-

-

-

-

-

-

Nichirei
Fresh(Domestic/
Overseas)

Nichirei
Fresh
Quality
Assurance
Department

-

-

-

-

-

-

-

-

Nichirei
Bioscience(Domestic/
Overseas)

Nichirei
Bioscience
Quality
Assurance
Department

2/2

-

1

1

14000:
0/1
13485:
2/2

-

2/2

1/1

Number ofGroup
Certifications(Domestic/
Overseas)

Quality
Assurance
Department

21/135

2

Nichirei
Foods(Domestic/
Overseas)

Nichirei
Foods
Quality
Assurance
Department

13/15

-

14/15

4/5

14/15

4/5

14/15

５/5

Nichirei
Logistics
Group(Domestic/
Overseas)

Nichirei
Logistics
Group
Quality and
SafetyManagement
Department

2/112

-

2/116

-

2/115

2/117

-

Nichirei
Fresh(Domestic/
Overseas)

Nichirei
Fresh
Quality
Assurance
Department

6/8

-

6/8

-

7/7

7/7

1/1

Nichirei
Bioscience(Domestic/
Overseas)

Nichirei
Bioscience
Quality
Assurance
Department

-

-

-

-

-

-

-

192

-

Quality
Assurance –Number of
Critical Cases

Quality
Assurance
Training
Hours

Group Annual
Number(Domestic/
Overseas)

Quality
Assurance
Department

30Nichirei
Foods(Domestic/
Overseas)

Nichirei
Foods
Quality
Assurance
Department

1

-

1

-

-

Nichirei
Logistics
Group(Domestic/
Overseas)

Nichirei
Logistics
Group
Quality and
SafetyManagement
Department

-

-

-

-

-

Nichirei
Fresh(Domestic/
Overseas)

Nichirei
Fresh
Quality
Assurance
Department

-

-

6

-

1

Nichirei
Bioscience(Domestic/
Overseas)

Nichirei
Bioscience
Quality
Assurance
Department

2

-

-

-

-

Group
AnnualHours(Domestic/
Overseas)

Quality
Assurance
Department

199.1

86

210

19

221.5

10

Nichirei
Foods(Domestic/
Overseas)

Nichirei
Foods
Quality
Assurance
Department

67

34

42.5

19

42.5

Nichirei
Logistics
Group(Domestic/
Overseas)

Nichirei
Logistics
Group
Quality and
SafetyManagement
Department

41

0

77

0

Nichirei
Fresh(Domestic/
Overseas)

Nichirei
Fresh
Quality
Assurance
Department

23.1

50

26.5

Nichirei
Bioscience(Domestic/
Overseas)

Nichirei
Bioscience
Quality
Assurance
Department

68

2

64

-

0

0

0

-

4

2

0

0

10

24

21

77

0

334

-

0

38

0

40

0

0

64

0

57.5

0

-

(1st
meeting)100%(11/11)(2nd
meeting)82%(9/11)-(1st
meeting)100%(11/11)(2nd
meeting)91%(10/11)-

3

Number of Major Meetings and Committee Meetings as well as Attendance Rates

Group Quality Quality
Assurance
Assurance
Committee
Department

Quality
Assurance
Department

95%

-

(1st
meeting)91%(10/11)(2nd
meeting)91%(10/11)■Percentage of receiving a Full Medical Examination after Periodic Health Checkups
Coverage
Nichirei Group total

Unit％

FY2017FY20182.2

193

FY20196.1

12.3

FY202017.5

FY2021

66.1

■Donations to Non-profit Organizations
Donations to Non-profit
Organizations(Millions ofyen)

FY2017FY2018FY2019FY2020

FY2021

Domestic Overseas Domestic Overseas Domestic Overseas Domestic Overseas Domestic Overseas

Social welfare and disastersupport（Social welfare, social
inclusion）

25

-

19

-

19

-

19

-

20

-

Social welfare and disastersupport（Support for disasterstricken areas）

18

3

2

1

14

0

16

0

2

0

Education（Academia & research）

5

-

3

-

15

-

10

-

8

-

Education（Education and social
education）

77

-

77

-

82

-

77

-

67

-

Health, sports and the arts
（Health, medicine, sports）

118

-

120

-

133

-

138

-

134

-

Health, sports and the arts
（Culture and arts）

1

-

6

-

0

-

0

-

0

-

Environmental conservation（Environment）

17

-

18

-

17

-

50

-

57

-

Community contribution（Community activities,
preservation of historic sites
and traditional culture）

16

-

16

-

24

-

19

-

48

-

Political contributions

0

-

0

-

0

-

0

-

0

-

Other

4

-

2

-

3

-

2

-

2

-

281

3

262

1

306

0

330

0

338

0

Nichirei Group total■Health Manager
Coverage
Nichirei Group total

Item

Unit

FY2021First-Class Health Manager

Number of people

89

Second-Class Health Manager

Number of people

11

Total

Number of people

100■Personal Information Protection Leaks, etc.
FY2017
Nichirei Group total

FY20180

FY20190

FY20200

FY202100■Number of Violations of Laws and Regulations in Advertisements/Publicity and Labeling
FY2017
Nichirei Group total

FY20180

FY20190194

FY20200

FY202100

Corporate Governance Data

Note: Fiscal years (FY) indicate years ended March 31.

Board of Directors
composition

Board of Directors
meeting attendance rate

Number of Meetings of
Various Committees, etc.

Facilities audits ofcompliance audits andinternal controls

Number ofWhistleblowing Cases,
by TypeAnti-corruption andbribery

Number of Meetings of
Various Committees,etc., and Number ofBoard Members inAttendance in FY2020

Outside Directors and Outside Audit & Supervisory Board Members Appointments

Notice of the 103rd Anuual General Shareholders MeetingPDF■Board of Directors composition
Category
Insidedirectors

Outsidedirectors

Total

Gender

FY2018 (Number ofpeople)FY2019 (Number ofpeople)FY2020 (Number ofpeople)FY2021 (Number ofpeople)

Male

7

7

7

7

Female

0

0

0

0

Total

7

7

7

7

Male

1

1

1

1

Female

2

2

2

2

Total

3

3

3

3

Male

8

8

8

8

Female

2

2

2

2

Total

10

10

10

10

■Board of Directors meeting attendance rate
Category

FY2018 (%)

FY2019 (%)

FY2020 (%)

FY2021 (%)

Inside directors

97.7

97.4

100

100

Outside directors

96.5

98.2

94.4

100

195

■Number of Meetings of Various Committees, etc.
Number of Meetings HeldFY2018 FY2019 FY2020 FY2021
Board of Directors

Meets regularly on the third Tuesday of each month

19

19

18

18

Management Committee

Meets regularly on Tuesdays except for the third
Tuesday of each month

21

23

20

17

Group Human Resources
Committee

Convened twice a year and at other times asneeded by the chairperson of the committee

2

2

2

2

Group Risk Management
Committee

Convened twice a year and at other times asneeded by the chairperson of the committee

2

2

2

2

Group Environmental
Protection Committee

Convened twice a year and at other times asneeded by the chairperson of the committee

3

3

2

2

Group Quality AssuranceCommittee

Convened twice a year and at other times asneeded by the chairperson of the committee

2

2

2

2

Group Internal Control
Committee

Convened once a year, and as needed, convened by
the chairperson

1

1

1

1

Group Officer Examination
Committee*1

Chairperson convenes as needed

-

-

1

1

Social Action Program
Committee

Convened once a year, and as needed, convened by
the chairperson

1

1

1

1

Nominating Advisory
Committee

Convened twice a year and at other times asneeded by the chairperson of the committee

1

2

2

5

Remuneration Advisory
Committee*2

Convened twice a year and at other times asneeded by the chairperson of the committee

1

6

3

5

Examination Committee

Chairperson convenes as needed

-

-

1

2

Intellectual Property
Management Committee

Chairperson convenes as needed

-

-

-

-

*1 Meetings are called by the chairperson on an as-needed basis*2 As of January 2020, meets twice a year in principle according to the Remuneration Advisory Committee rules■Number of Meetings of Various Committees, etc., and Number of Board Members in Attendance in
FY2020
Group
Group
Group
Group
Group
Nomin- RemuneEnvironGroup
SocialOfficer
Risk
Quality
Board Manag- Human
Examiating
rationInternal
Actionmentalofement
Examination
Reso- ManagAssuProteControl
Program Advisory Advisory
ement
rance
nationDirec- Commi- urces
CommiCommiCommi- Commi- Commiction
Commi- CommiCommiCommitors
ttee
ttee
Committee
ttee
ttee
ttee
ttee
ttee
ttee
ttee
ttee
Number of
Meetings
Held

18

17

2

2

2

2

1

1

1

5

5

2

Number of Meetings Held
Representative
Director,
Chairman

Kunio
Otani

18

17

2

2

2

1

1

1

1

5

-

-

Representative
Director,
President

Kenya
Okushi

18

17

2

2

2

2

1

1

1

5

5

-

Director,
Executive
Officer

Takumi
Taguchi

18

17

2

2

2

2

1

1

1

-

-

2

Director,
Executive
Officer

Junji
Kawasaki

18

17

2

2

2

2

1

1

1

-

-

2

Director,
Executive
Officer

Kazuhiko
Umezawa

18

17

2

2

2

2

1

1

1

-

-

2

196

Group
Group
Group
Group
Group
Nomin- RemuneEnvironGroup
SocialOfficer
Risk
Quality
Board Manag- Human
Examiating
rationInternal
Actionmentalofement
Examination
Reso- ManagAssuProteControl
Program Advisory Advisory
ement
rance
nationDirec- Commi- urces
CommiCommiCommi- Commi- Commiction
Commi- CommiCommiCommitors
ttee
ttee
Committee
ttee
ttee
ttee
ttee
ttee
ttee
ttee
ttee
Number of
Meetings
Held

18

17

2

2

2

2

1

1

1

5

5

2

Number of Meetings Held
Director,
Executive
Officer

Masahiko
Takenaga

18

17

2

2

2

2

1

1

1

-

-

2

Director,
Executive
Officer

WataruTanabe(Newappointment)

-

-

-

-

-

-

-

-

-

-

-

-

OutsideDirector

Shizuka
Uzawa

18

10

-

2

-

-

1

1

-

5

5

-

OutsideDirector

Mieko
Wanibuchi

18

9

-

2

-

-

1

1

1

5

5

-

OutsideDirector

Kuniko
Shoji

18

-

-

2

-

-

1

1

-

5

5

-

OutsideDirector

Mana
Nabeshima(New
appointment)

-

-

-

-

-

-

-

-

-

-

-

-

Audit &
Supervisory
Board
MemberKazuhiko
Yasuda

18

17

2

2

2

2

1

1

1

-

-

2

Audit &
Supervisory
Board
MemberTatsushiKato(Newappointment)

-

-

-

-

-

-

-

-

-

-

-

-

OutsideAudit &
Supervisory
Board
MemberYuhiko
Saito

18

4

-

2

-

-

1

1

-

-

-

-

OutsideAudit &
Supervisory
Board
MemberKiyoshi
Asahina

14*

9

-

2

-

-

1

1

-

-

-

-

OutsideAudit &
Supervisory
Board
MemberMuneakiKiyota

14*

8

-

2

-

-

1

1

-

-

-

-

* Appointed at the 102nd Annual General Meeting of Shareholders on June 24, 2020; attended 14 out of 14 total meetings since theExtraordinary Board Meeting on June 24, 2020.

197

■Facilities audits of compliance audits and internal controls
Department
in charge

FY2018FY2019FY2020

FY2021

Remarks

Domestic Overseas Domestic Overseas Domestic Overseas Domestic Overseas
Communication with all employees on governance and internal controls
Number of training/seminars conducted(including e-learning)

Corporate
Audit
Department

1

1

1

1

Participation ratio (% of all
employees covered)Corporate
Audit
Department

95.50%

96.80%

93.60%

94.00%

Corporate
Audit
Department

290

7

301

16

285

8

222

Compliance
0 and facilities
combined

Group annual
implementation
Corporate
rate (office
Audit
coverage rate
Department
domestic/
overseas)

77%

16%

82%

36%

73%

19%

58%

Compliance
0% and facilities
combined

Number ofGroup audits
per year(Domestic/
Overseas)

Corporate
Audit
Department

172

4

181

8

162

4

152

0

Group annual
implementation
Corporate
rate (office
Audit
coverage
Department
rate domestic/
overseas)

71%

15%

74%

31%

66%

17%

61%

0%

Nichirei Foods(Domestic/
Overseas)

Corporate
Audit
Department

85%

8%

74%

8%

88%

40%

75%

NichireiCorporate
Logistics Group
Audit(Domestic/
Department
Overseas)

58%

10%

68%

70%

59%

0%

49%

Nichirei Fresh(Domestic/
Overseas)

Corporate
Audit
Department

100%

50%

100%

0

100%

0

88%

0%

Nichirei
Bioscience(Domestic/
Overseas)

Corporate
Audit
Department

100%

0

100%

0

0

0

100%

0%

Number ofGroup audits
per year(Domestic/
Overseas)

Corporate
Audit
Department

118

3

120

8

123

4

70

Group annual
implementation
Corporate
rate (office
Audit
coverage
Department
rate domestic/
overseas)

87%

16%

87%

42%

87%

22%

51%

Facilities only
(the number of
0 Group annual
audits and theGroup annual
implementation
rate includes
corporate
0% departments)

Nichirei Foods(Domestic/
Overseas)

Corporate
Audit
Department

94%

33%

100%

17%

94%

33%

82%

0%

NichireiCorporate
Logistics Group
Audit(Domestic/
Department
Overseas)

84%

0

85%

58%

87%

14%

43%

0%

Nichirei Fresh(Domestic/
Overseas)

100%

100%

100%

0

100%

0

89%

0%

Governance Management

Internal
audit

Compliance
auditsFacilities
audit

Number ofGroup audits
per year(Domestic/
Overseas)

Corporate
Audit
Department

198

Complianceonly (thenumber ofGroup annual
0% audits and theGroup annual
implementation
rate includes
0% corporate
departments)

Department
in charge

FY2018FY2019FY2020

FY2021

Remarks

Domestic Overseas Domestic Overseas Domestic Overseas Domestic Overseas
Nichirei
Bioscience(Domestic/
Overseas)

Corporate
Audit
Department

100%

-

0%

-

100%

0

100%

0%

-

100%

-

100%

-

Number of major meetings and committees held and the attendance rate
Percentage of directors
attending each committee
meeting (10 individuals)
Group Internal
ControlCommittee

Corporate
Audit
Department
Corporate
Audit
Department

100%

-

90%

■Number of Whistleblowing Cases, by TypeFY2017FY2018FY2019FY2020

FY2021

Mistreatment

6

6

6

2

2

Workplace Disputes

2

11

2

5

8

Harassment

7

12

1

12

10

Compliance-related Breaches

1

3

1

1

5

Human rights issues

0

0

0

0

0

Other Consultations

4

3

2

1

2

Total

20

35

12

21

27

■Anti-corruption and bribery
FY2020

FY2021

Punished employees

None

None

Payment of fines

None

None

199

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
2021

2020

2019

2018

2017

2016

2015

2014

2013

2012

2011

2010

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

2009

2008

2007

2006

2005

2004

2003

2002

2001

2000

1999

✓

✓

✓

✓

✓

✓

―

―

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

year
2021

2020

2019

2018

2017

✓

✓

✓

✓

✓

2016

2015

200

2014

2013

2012

2011

2010

MSCI ESG ratings
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
2021

2020

2019

2018

2017

AA

AA

A

A

A

2016

2015

2014

2013

2012

2011

2010

MSCI Japan ESG Select Leaders Index
The index composed by MSCI, Inc. by selecting stocks with relatively high ESG ratingsfrom among the constituents of the MSCI Japan IMI Top 700 Index.

year
2021

2020

2019

2018

2017

AA

AA

A

A

A

2016

2015

2014

2013

2012

2011

2010

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

year
2021

2020

2019

2018

2017

AA

AA

A

A

A

2016

2015

2014

2013

2012

2011

2010

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

year
2021

2020

2019

2018

2017

2016

2015

2014

2013

2012

✓

✓

✓

✓

✓

✓

✓

✓

―

―

201

2011

2010

CDP (Climate Change / Water Security)
CDP is an international NGO that operates a global information disclosure system forinvestors, 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.

year■Climate Change
2021

2020

2019

2018

2017

2016

2015

2014

2013

2012

2011

A-

B

B

B

C

A-

C

C

C

31

―

2010

year

■Water Security
2021

2020

2019

2018

2017

2016

2015

2014

2013

2012

2011

A-

B

B

B-

B-

―

―

―

―

―

―

2010

S&P/JPX Carbon Efficient Index

year
2021

2020

2019

2018

2017

2016

2015

2014

2013

2012

2011

2010

〇

〇

〇

―

―

―

―

―

―

―

―

―

JPX-NIKKEI 400

year
2021

2020

2019

2018

2017

2016

2015

2014

2013

2012

2011

2010

〇

〇

〇

〇

〇

〇

〇

〇

〇

―

―

―

202

■List of Certifications
Acquisition Year

Name

2021年7月2024年6月

an Excellent Occupational
Safety and Health Enterprisehttps://www.nichirei.co.jp/ne
ws/2021/391.html(Only Available in Japanese)

From FY2020

Health & Productivity Stock
Selection

https://www.nichirei.co.jp/ne
ws/2021/380.html(Only Available in Japanese)

From FY2019

DBJ Employees' HealthManagement Rated Loan
Programhttps://www.nichirei.co.jp/ne
ws/2019/328.html(Only Available in Japanese)

From FY2017

The Certified Health andProductivity Management
Organization Recognition
Program under the large
enterprise category

From FY2018

Eruboshi “Stage 3”(Accredited by the Minister of
Health, Labor and Welfare
based on the “The Act ofPromotion of Women's
Participation andAdvancement in the
Workplace")https://www.nichirei.co.jp/ne
ws/2017/293.html(Only Available in Japanese)

From FY2010"The Act on Advancement of
Measures to Support Raising
Next-Generation Children"certification mark (nickname:
Kurumin)https://www.nichireifoods.co.
jp/corporate/sustainability/human_resources.html(Only Available in Japanese)203

■Awards
AwardsYear

Name

OutlineSponsored by Ministry of Agriculture, Forestry and
Fisheries
Junwakei Chicken® won the "MeaDRI Promotion
Award" at the Sustainability Awards 2021, a joint
project sponsored by the Ministry of Agriculture,
Forestry and Fisheries of Japan, "Sustainable
Consortium 2030 - for Agriculture, Forestry, Fisheries
and Food(SCAFFF)".

FY2022

SustainabilityAwards 2021
Strategy for
Sustainable Food
Systems(MeaDRI)
Promotion award

FY2022

The 10th Smart
Life ProjectAward (Let's
extend healthy
life expectancy!)
Received the
Director Generalof the HealthBureau of the
Ministry of
Health, Labor andWelfare（MHLW）
Award for
Excellent

FY2022

Commendationfrom WICI Japan,
a general
incorporated
association

Awarded in WICI Japan "Integrated Report Award 2021”
Received the Gold Award for Excellence, the highest award, in the WICI Japan"Integrated Report Award 2021”.

FY2021City of Yokosuka
Commendation

City of Yokosuka Commendation
Nichirei Fresh Inc. was commended for having employed people with disabilities overmany years, and for contributing to their social independence through vocational
guidance.

FY2021FY2019The Yokohama
Global WarmingCountermeasures
Award

1st Award forGood Practices ofConsumeroriented
Received theConsumer Affairs
Agency Director'sCommendation

Organized by MHLW and Japan sports agency
Received the Excellence Award from the Director General of the HealthBureau of MHLW in the 10th Smart Life Project Award (Let's extend healthy
life expectancy!) organized by MHLW and Japan sports agency.

Sponsored by City of Yokosuka
The Yokohama Global Warming Countermeasures Award commends businesses thathave significantly reduced greenhouse gas and other emissions. Assessments are madebased on the implementation status of priority measures and the achievement statusof reduction targets over a three-year period.
Nichirei Logistics Kanto received the Yokohama Climate Change Countermeasures
Award, part of the Yokohama City Action Plan for Global Warming Countermeasures.

Sponsored 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.

204

FY2018

Tokyo Stock
Exchange, Inc.

Sponsored by Tokyo Stock Exchange, Inc.
This award recognizes companies that have achieved high corporate value by

6th Corporate
Value
Improvement
Award
Excellent Award

implementing 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 the costof 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 and Tourism
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 and inventory
management to delivery. The effectiveness of these efforts was recognized, and theaward 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 was recognized that it hascontinued to expand its transportation area and handling volume.

Nano Tech 2017
Life
Nanotechnology
Award

Sponsored by International Nanotechnology Exhibiton & Conference
Exhibitors' innovative and pioneering technologies and products are selected for eachfield, and excellent exhibitors are selected. Nichirei is trying to make use of theresearch and results of antifreeze proteins discovered from fish inhabiting cold regions
in a wide range of fields such as food, medicine and industry, and their activities 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.

FY2017205

External Initiatives
The Nichirei Group promotes efforts to realize a sustainable society by participating in initiatives and organizations in Japanand overseas.

GlobalUnited Nations Global Compact
https://www.unglobalcompact.org/
On November 15, 2021, Nichirei joined the United Nations Global Compact, a worldwide effort
to achieve sustainable growth in the international community. In accordance with the Global
Compact's 10 principles, which involve human rights, labor, the environment, and anticorruption efforts, Nichirei will work toward the realization of a sustainable society.

Participation in the UN Global Compact (Only available in Japanese)

The Consumer Goods Forum (CGF)
https://www.theconsumergoodsforum.com/
The Consumer Goods Forum is a global consumer goods distribution industry network, inwhich retailers and manufacturers cooperate to promote activities driven by member
companies. The network encourages the introduction of practices and standardization that are
useful to the consumer goods industry around the world. Nichirei Foods has been a forum
member since 2011.

206

Roundtable on Sustainable Palm Oil (RSPO)
https://www.rspo.org/
In response to growing global concern regarding the impact of the rapidly expanding palm
oil plantations, in Malaysia and Indonesia, on the environment and human rights, the RSPO
was set up in 2004 by stakeholders from the seven sectors of the palm oil industry,including the World Wildlife Fund (WWF).
The RSPO aims to promote the sustainable production and use of palm oil through theformulation of international certification standards and stakeholder participation. The
Nichirei Group became a member of the RSPO in August 2018.
4-1055-18-100-00

WWF Japan
WWF Japan ｜WWF Japan
Established in Switzerland in 1961, the WWF is a global environmental
conservation organization that is active in more than 100 countries. Aiming tobuild a future in which people and nature can live in harmony, the WWF
develops activities to protect biodiversity on Earth and reduce the burden thathuman life places on the natural environment and wildlife. Since October 2009,
the Nichirei Corporation has supported the organization’s conservation efforts
as a WWF Japan corporate member.

207

Domestic
TCFD Consortium
Top | TCFD Consortium (tcfd-consortium.jp)
The Task Force on Climate-related Financial Disclosures (TCFD), chaired byMichael Bloomberg, was created by the Financial Stability Board (FSB) at therequest of the G20. Its aim is to set up a framework to help companies andorganizations disclose climate-related risks and opportunities and, at thesame time, support financial institutions.
The TCFD Consortium was established in May 2019. the Nichirei Group has
been a member company since June 2020.

Japan Climate Initiative (JCI)
Japan Climate Initiative – JCI
To strengthen information dissemination and the exchange of opinions among Japanesecompanies, local governments, research institutions, and NGOs that are engaged inclimate change-related measures, the Japan Climate Initiative (JCI) was founded inJuly 2018, as a loose network of 105 participating organizations. The Nichirei Grouphas been a member since March 2021.

Green Purchasing Network (GPN)
https://www.gpn.jp/english/
This loose network of Japanese companies, government bodies, and privateorganizations was set up in Japan in 1996, to promote green purchasing, whichprioritizes the buying of products and services that have a low environmental impact
and are socially responsible.
The GPN promotes green purchasing, formulates purchasing guidelines for products
and services, and operates the Eco-products Database, an environmental information website for products and services.
Nichirei has been a member of the network since August 1996.

208

Life Cycle Assessment Promotion Consortium
RISS (aist-riss.jp)
The Life Cycle Assessment (LCA) Promotion Consortium is operated by the
Research Institute of Science for Safety and Sustainability, and is designed
to promote a wider understanding of appropriate evaluation methodologies.
It also serves to support evaluations leading to the realization of asustainable society, by promoting the adoption of products facilitating
decarbonization-related innovation and sustainable business management.
Nichirei has been a member since April 2021.

Japan Clean Ocean Material Alliance (CLOMA)
Japan Clean Ocean Material Alliance | English HOME | Alliance for reducing marine plastic litter (cloma.net)
The Japan Clean Ocean Material Alliance (CLOMA) was founded in January 2019 as aplatform to accelerate innovation and strengthen alliances between a wide range ofstakeholders across industry sectors. It aims to develop and promote the more sustainable
use of plastic products, introduce and adopt innovative alternatives to plastic and, in theend, to completely eliminate plastic waste in order to resolve the global environmental issueof marine plastic litter. Nichirei has been a member since December 2018.

United Nations World Food Programme
The United Nations World Food Programme (WFP)—WFP.org
The United Nations WFP Japan office—a certified non-profit organization that supports the WFP in its mission to eliminate
hunger—was established in January 1999 as the official support organization for the United Nations WFP in Japan.
In 2020, the United Nations WFP was awarded the Nobel Peace Prize in recognition of its efforts to prevent hunger frombeing used as a weapon in conflict and civil war. The Nichirei Group has been a member of the WFP in Japan since
September 2005.

209

The Global Alliance for Sustainable Supply Chain (ASSC)(g-assc.org)
Established in January 2017 to contribute to sustainable socioeconomic
developments, the ASSC creates alliances with corporations, labor unions, civilsociety, and other organizations to conduct initiatives targeting the resolution ofvarious issues, including matters related to climate change and human rights tied tocorporate activities including supply chains. The Nichirei Group became a member company in March 2021.

Japan Food Safety Management Association (JFSM)
Japan Food Safety Management Association（JFSM）
The JFSM was founded in January 2016, to help improve food safety in the Japanese and Asianfood industries, as well as among consumers. To this end, it set up and managed food safety
management certification and accreditation standards, which are consistent with international
standards. The Nichirei Group plays a leading role in this association as a founding member, with
one Nichirei director serving as a JFSM director.

210